Becoming an Academy and the journey towards sustainability

1. Becoming an Academy and the journey towards sustainability The Journey

2. Babcock Education delivers in four key areas

3. Academisation. It’s a journey! Conversion Embedding Beginning Developing Leading

4. It’s a journey! Preparation Embedding Beginning Developing Leading

5. It’s a journey! • Step 1 – Start up • £ Additional one off funding for set up, Sponsor support. • Key Support Services • Project Management • Governance Support • Legal Support • Finance Support • HR Support (TUPE) Embedding Beginning Developing Leading Behaviour / Characteristics Continue with tried and tested SLT & Governors focused on conversion process Heavy dependency on new Legal & Finance support

6. The Journey from School to Successful Academy Governance & Accountabilities

7. Structure & CompositionThe Due Diligence process: • Definition of an academy • An independent state school that is publicly and centrally funded, free from local authority control • Academy Trust is created to run Academy through Company Limited by Guarantee (with charitable exemption) • Funding Agreement between Academy Trust and Secretary of State to operate Academy • Academy Trust appoints Governing Body to run the Academy • Accountable to Secretary of State through DfE/ EFA

8. Structure & CompositionImplications of being a Company: • Draw up a Memorandum and Articles of Association • Set up as Company Limited by Guarantee and registered with Companies House • At least 3 members are appointed from the existing Governing Body (effectively the shareholders) • The remaining Governors can become Directors / Trustees • The Funding agreement sets out the Legal agreement for a minimum of 7 years • The Governors are the employers, staff must be TUPE to the Trust 8

9. The Structure – stand alone Academy Members Academy Trust Staff Funding Agreement Contracts Leases/ Land Governors – Trustees - Directors

10. Structure & CompositionDirectors statutory duties: • To act within the powers granted as set out in the articles of association • To promote the success of the company • To exercise independent judgement • To exercise reasonable care, skill and diligence • To avoid conflicts of interest • To not accept benefits from third parties • To declare their interests in any proposed transaction or arrangement with the company

11. Structure & CompositionThe Directors strategic responsibilities: • The daily running of the Academy and the management of the Academy’s business affairs • Ensuring the standard of education • Entering into contracts on the Academy’s behalf • Ensuring that relevant statutory documents are delivered to Companies House • Managing the Academy Trust’s finances and property • Taking part in board meetings of the governors

12. Structure & CompositionAdditional responsibilities that come with charitable status: • Accept ultimate responsibility for the Academy Trust; ensuring that it is solvent, well managed and delivering the charitable outcomes for which it was set up • Ensure compliance with Charity Law and deliver necessary reports and returns as required • Only use assets and funds in furtherance of the Academy Trust’s objectives • Consider obtaining external professional advice • Take special care when investing the funds of the Academy

13. The Structure – Multi Academy Trust DFE Master Funding Agreement All Academies Supplemental Funding Agreements Academy 1 Academy 2 etc • Multi Academy Trust • Responsible under Funding Agreement for operating each Academy but delegates funding to LGBs • Trust consists of: • Members • Directors LGB = committee of Board of Directors of Trust. Trust Directors appoint each LGB and delegate functions. Each LGB must report back to Trust Directors. • Local Governing Body (LGB) 1 • Manage Academy 1 • Governors may inc: Headteacher, Staff Governors, Parent Local Governing Body (LGB) 2…..

14. Governance & AccountabilitiesApproach to delegation: Main Board • Strategic oversight • Setting visions and policies for the Trust • Governance • Contractual relationships with third parties Local Governing Body • Day to day running of the academy • Carrying out the Trust’s vision, policies and priorities • Holding academy leadership to account

15. Governance & AccountabilitiesApproach to delegation of finance: Main Trust Board • Establishing a funding model across academies • Agree annual budget for each academy • Compliance with Academies Financial Handbook • Oversight of finances of each academy • Determine the services provided centrally and the allocation of cost • Establishing processes for maintenance of assets Local Governing Body • Manage the academy’s cash flow • Support the Board to set the budget • Maintain proper accounting records • Seeking value for money and ensure resources are applied appropriately • Follow the delegation & processes set by the Trust • Notify the Trust of changes to fixed assets

16. Financial StructureFunding – where does it come from? • Education Funding Agency (EFA) • GAG • Place funding for Special Educational Needs (SEN) units • ESG • Pupil Premium • Local Authority (LA) • SEN statements • Early Years funding • Top up from high needs block

17. Financial StructureFinancial management comparisons:

18. Financial StructureFinancial assurance comparisons:

19. Conversion PlanningWhat you need to consider: • Statutory policies - make sure they are fit for purpose • Financial software • Financial accounting structure • Financial Manual • Make sure you have set up your standing orders appropriate to your academy status • Set up risk registers

20. Conversion PlanningNew challenges - financial • Fixed Assets • Reporting to DfE/ EFA • VAT • Cashflow • Annual Accounts • Includes: the Governors’ Report, Statement of Internal Control, Statement of Governors/ Trustees Responsibilities, Accounting policies

21. Conversion PlanningNew challenges - HR • Staff Consultation • TUPE • New Contracts – Governors as employers • Pay Policy & Performance Management • Post conversion changes to salary grades or terms & conditions

22. Conversion PlanningBuild capacity & expertise: • Evaluate skill sets within current staff and look at possible gaps • Decide how to manage the gaps, cost your options • Use existing partners if possible to limit the number of changes • Get essential expertise: • Legal • Finance • HR • Governance

23. Conversion PlanningMake a Plan! • Overview of conversion timeline • Lead the stages within the project (as per DfE) • Registration • Application to convert/ pre-approval checks • Achieve Funding Agreement • Pre-opening & opening • Good internal communication • Use as a reporting tool to ‘RAG’ progress • Extend the plan to post conversion

24. The journey - Independence • Step 1 – Conversion • £ 25k conversion funding • Key Support Services • Legal Support • Finance Support • HR Support (TUPE) • Step 2 – Independence • £ full devolved funding • Key Support Services • SI Support • Accountancy/Payroll • Legal Support Beginning Developing Embedding Leading Behaviour / Characteristics Some experimentation with service providers but typically continue with tried and tested SLT & Governors focused on achieving highest Ofsted Outstanding or improving status Establishing new core trusted partnerships especially Legal & Accountancy Behaviour / Characteristics Continue with tried and tested SLT & Governors focused on conversion process Heavy dependency on new Legal & Finance support

25. The journey - Embedding • Step 1 – Conversion • £ 25k conversion funding • Key Support Services • Legal Support • Finance Support • HR Support (TUPE) • Step 2 – Independence • £ full devolved funding • Key Support Services • SI Support • Accountancy/Payroll • Legal Support • Step 3 – Differentiation • £ success, efficiency & entrepreneurship = increased funding • Key Support Services • Business Skills Support • SI Support • Accountancy / Payroll • Legal Support Beginning Developing Embedding Leading Behaviour / Characteristics Some experimentation with service providers but typically continue with tried and tested SLT & Governors focused on achieving highest Ofsted Outstanding or improving status Establishing new core trusted partnerships especially Legal & Accountancy Behaviour / Characteristics Increased experimentation with procurement models and service providers ready to create new relationships SLT & Governors focused on differentiation, brand development and building new education alliances Establishing core long term trusted partnerships Behaviour / Characteristics Continue with tried and tested SLT & Governors focused on conversion process Heavy dependency on new Legal & Finance support

26. The journey - Leading • Step 1 – Conversion • £ 25k conversion funding • Key Support Services • Legal Support • Finance Support • HR Support (TUPE) • Step 2 – Independence • £ full devolved funding • Key Support Services • SI Support • Accountancy/Payroll • Legal Support • Step 3 – Differentiation • £ success, efficiency & entrepreneurship = increased funding • Key Support Services • Business Skills Support • SI Support • Accountancy / Payroll • Legal Support • Step 4 – Collaboration & Competition • £ success, business efficiency, governance & partnerships = sustainable funding • Key Support Services • Governance Support • Advanced Bus Skills • SI Support • Accountancy/Payroll • Legal Support Beginning Developing Embedding Leading Behaviour / Characteristics Some experimentation with service providers but typically continue with tried and tested SLT & Governors focused on achieving highest Ofsted Outstanding or improving status Establishing new core trusted partnerships especially Legal & Accountancy Behaviour / Characteristics Increased experimentation with procurement models and service providers ready to create new relationships SLT & Governors focused on differentiation, brand development & building new education alliances Establishing core long term trusted partnerships Behaviour / Characteristics Professionalism of the organisation as it matures into a business that delivers education SLT & Governors focused on Businissificationinc. accountability, securing success, funding & growth Strategic partnerships and alliances key to success Behaviour / Characteristics Continue with tried and tested SLT & Governors focused on conversion process Heavy dependency on new Legal & Finance support

27. The Journey – for a Multi-Academy Trust • Step 1 – Start up • £ Additional one off funding for set up, Sponsor support • Key Support Services • Project Management • Governance Support • Legal Support • Finance Support • HR Support (TUPE) • Step 2 – Organisation & Brand Development • £ Capital grants can be bid for, scale can leverage better Value for Money & efficiencies • Key Support Services • SI Support • Accountancy/Payroll • Business Skills Support • Governance Support • Legal Support • Step 3 – Acquisition • /Growth • £ Additional funding with failing schools, through diversification & new revenue streams • Key Support Services • Project Management • SI Support • Accountancy/Payroll • Business & Governance • Legal Support • Step 4 – Sustainability • £ success, business efficiency, governance & partnerships = sustainable funding • Key Support Services • Advanced Bus Skills • Professional Services • SI Support • Accountancy/Payroll • Business & Governance • Legal Support Beginning Developing Embedding Leading Behaviour / Characteristics Continue with tried and tested SMT & Governors focused on meeting new Governance & organisational challenges, recruitment of key in house resources e.g. Business Manager Heavily dependent on new Legal & Accountancy support Behaviour / Characteristics Capacity and skills gaps force the buying in of Professional Services SMT & Governors focused on defining Vision, ethos and Brand whilst maintaining highest Ofsted Outstanding or improving status Establishing new MAT relationships with DFE, LAs, schools and suppliers Behaviour / Characteristics Actively looking to achieve better value for money SMT & Governors focused on differentiation, Brand development, management, process & systems development to enable the addition of new schools. Capacity challenge to met with integration of new schools and Academy conversion process. Behaviour / Characteristics Professionalism of the member organisations as the Trust matures into a an Education Business SMT & Governors focused on Businisification of the organisationinc. accountability, securing success, funding & growth Strategic partnerships and alliances key to success