Steps to becoming an Academy

1. Steps to becoming an Academy

2. Introduction • Appleyards – project managers and educationalists, supported by legal partners, TPP Law • 30 Academies to date, including outstanding schools converting to Academies • In-depth knowledge of the legal and contractual processes involved

3. Making your decision to proceed • What are the specific benefits and risks for your school? • Understand the obligations – what does it mean being an independent charitable company? • Will the land ownership arrangements change? • What are the revenue/budget implications? • What resources are available to manage the process? • What are the likely set up costs? • What do stakeholders think?

4. Forming the Academy Trust The Trust is a registered company and charity and as such Governors will have additional responsibilities and obligations as Directors and Trustees. We can: • Advise on the legal and contractual process • Form the Memorandum and Articles, defining the role of the Trust • Register the Trust with Companies House • Advise on the establishment of the Funding Agreement

5. Governance Governors will act as Trustees and Directors of a charitable company and as such will be subject to duties and liabilities under company and charity law. We can explain: Who will be members of the Trust and who will be directors How the scheme of delegation for committees will operate under a company format Roles and responsibilities under the Memorandum and Articles Duties under the Companies Act 2006 and charity law Extent of a Governor’s personal liability

6. Land and property transfer/lease • Identify and advise on existing land arrangements • Due diligence on land and property - are there any obligations which will transfer to the Academy? • Identify responsibility for any outstanding H&S/maintenance issues • Establish lease/land transfer agreement and implications for future land use/development

7. TUPE(Transfer of Undertakings & Pension Entitlements) • Understand how TUPE may affect the transfer • Identify transferring staff • Advise and/or consult with staff and unions • Identify any pension deficit and ensure proper registration with pension organisations • Develop new contracts for staff • Advise on an effective indemnity against pre-transfer claims by staff

8. Commercial transfer agreements • Identify existing service and supply contracts • Ensure existing service/supply contracts are effectively assigned/novated to the Trust • Notify local authority of any contracts to be cancelled • Agree transfer of all warranties and indemnities • Agree and form final commercial transfer agreement to protect Academy Trust

9. Financial and operational preparations • Advise on payroll and finance management systems and implications for a new independent company • Advise on Academy budgets • Ensure all existing licences e.g. ICT are transferred to Academy • Set up all necessary insurances • Set up bank accounts • Compliance with all necessary company registrations i.e. Corporation tax liabilities etc.

10. Registrations and pre-opening preparation – things to think about • Independent school registration • Curriculum and exam board registration • Review key educational, operational, HR and admissions policies • New stationery and signage

11. Open Academy

12. Questions and responses • What would the liability be for Governors if the academy became ‘insolvent’? We would not expect this situation to arise as the Secretary of State could use reserve powers to intervene with replacement governors if there was financial mis-management. Governors will not acquire personal liability provided they act with prudence and seek advice as appropriate.

13. Questions and responses • What would the position of ‘Cooperative Trusts’ be in a move to Academy status? • Are current Trust and Foundatioin schools to be continued? These would need to be resolved by discussion with DfE or by clarification of future government policy

14. Questions and responses • If two schools are already working together, one ‘outstanding’ the other not, is there potential for academy status for both schools? DfE would need to clarify whether the rubric of the current proposals allowed this; all new ‘outstanding school’ academies will have a responsibility to work in support with one other school. It may be that academy status could be offered to both.

15. Questions and responses • Is there an obligation for an LA to offer buy back of services to an academy...eg coordination of admissions?  There is no legal obligation on the LEA to compel them to offer  services to an academy which are not part of its mandatory duties. We expect that in due course the DfE will review admission arrangements especially if a very large number of schools convert to academy status. Academies will act as their own admission bodies in the same fashion as foundation and VA schools.