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Academy Status

Academy Status. Keith Abbott Director of School Resources, Business Strategy and Support Molly Norley Change Manager, Business Strategy and Support. Academies Act 2010. New Style academies Mainstream schools judged by Ofsted to be outstanding or good with one or more outstanding feature

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Academy Status

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  1. Academy Status Keith Abbott Director of School Resources, Business Strategy and Support Molly Norley Change Manager, Business Strategy and Support

  2. Academies Act 2010 • New Style academies • Mainstream schools judged by Ofsted to be outstanding or good with one or more outstanding feature • Special schools judged by Ofsted to be outstanding • Any school can apply to join an existing Academy Trust • Any group of schools can apply in partnership as long as at least one of the member schools is outstanding or good with one or more outstanding feature • Any school can apply to convert if able to make a compelling case in terms of exam performance, Ofsted reports etc • A requirement for schools wanting to convert is that they will be expected to commit formally to support another school to help raise that school’s performance

  3. The Trust and Governors • Academy Trust – a body of people who are responsible for the land and assets of an Academy and are directly responsible for appointing the Governing Body • Governors – the Governing Body manages the Academy on behalf of the Academy Trust • The day to day running of the Academy is the responsibility of the Headteacher/Principal

  4. The Academy Trust • The Academy Trust is a charitable company responsible for the running of the Academy and has control over the land and other assets. It has a strategic role and delegates management of the school to the governors • Each member owns an interest in the Academy Trust and the members are signatories to the Memorandum • The Academy Trust is responsible for appointing the governors (also known as directors or trustees) and holds the Governing Body to account • Under the Articles of Association, the Trust is required to provide indemnity insurance to cover the liability of its governors (provided they have acted in good faith) • Liabilities to external parties would be those of the Trust and not the governors • The members will be liable to contribute up to £10 if the Trust is wound up • (accountable to both company and charity law) • Liable for up to £10 unless fraud or negligence is proven)

  5. The Governing Body • DfE template • The process for governor elections is set out in the Articles of Association and agreed between the Academy Trust and the Secretary of State • Up to a prescribed number of governors appointed by the members • At least 2 parent governors • Academies are free to choose whether to have a local authority governor (no more than one), staff governor(s) or co-opted governors • The Principal (counts in employee quota as no more than a third of the Governing Body can be Academy staff) • (no more than 1/3 employees on the Governing Body)

  6. Responsibilities of the Board of Governors • The governors are directors of the company incorporated at Companies House and trustees of the charity. Their responsibilities are: • To ensure the quality of the educational provision • To challenge and monitor the performance of the Academy • To manage the Academy Trust’s finances and property • To employ staff and hold them to account • To manage and comply with the obligations in the Funding Agreement • Where the school has a religious designation, to maintain its faith ethos • The governors will also need to comply with the obligations under company and charity law and ensure that the Academy Trust is compliant

  7. Academies Act 2010 • Advantages • Freedom from Local Authority control and independence for the trust • Potential to set pay and conditions for staff (TUPE) and the majority of schools who are changing pay and conditions have been from North Kent, trying to compete with London waiting time. • Freedom in terms of some of the National Curriculum (but academies must still provide a broad, balanced curriculum including English, Maths and Science) • Potential to change the length of terms and school days • Freedom to negotiate SLAs and contracts

  8. KCC Maintained School Status • Governing Bodies will need to assess the benefits of Academy status and set these against the continued benefits of remaining with KCC and also the avoidance of increased risk

  9. Continued BenefitsContinuity of provision • KCC provides a buffer between DfE and schools – Academies will have direct accountability • KCC can lobby for improved settlements (eg with YPLA over sixth form funding) and use its influence to secure better outcomes for schools • Continued support from LA staff who know and understand the school and who have experience and understanding of KCC and DfE standards, policies and procedures • Simplified and preferential terms and conditions for the purchasing of services through EduKent • Avoids increased bureaucracy and stress around finding suitable alternative provision with the risk of increased costs and/or less favourable commercial terms • Continued insurance cover through KCC rather than having to negotiate individual cover

  10. Continued BenefitsCrisis and Media Management • Maintained schools benefit from dedicated support via Area Education Officers who can step in at a moment’s notice to help handle emergency situations • They can arrange alternative accommodation if the worst happens and aid effective communication with agencies and the local community • Press queries and coverage will be proactively managed through established contacts within the local and national media

  11. Continued Benefits Maintenance agreements and licences • Planned Maintenance Agreements which cover the servicing of boilers, lifts, fire alarms and emergency lighting, air conditioning, gas carcass testing, 5 year electrical testing, water hygiene risk assessments / monitoring and asbestos surveys and tree inspection • Servicing and statutory maintenance of the school's assets is essential to the safety of the building's users and the on-going smooth operation of the school, preventing potential school closures • SIMS and other software licences obtained through KCC which academies have to purchase separately, often at significant cost

  12. Continued Benefits Financial Management • Continue to benefit from high level responsive financial support including: • Support for managing deficit budgets with facility for a three year plan to return to surplus • Academies are not allowed to run a deficit without remedial actionand will be required to agree a restructuring plan with the YPLA • KCC can continue to offer KCC schools loans at only 0.5% above base rate, a far more preferential rate than you could find in the private sector • (Academies are not allowed to borrow money without agreement from the Secretary of State) • KCC schools can rollover unlimited capital funding and 5% - 8% of revenue funding at the end of the financial year • KCC will continue to be responsible for paying redundancy payments, provided they have been approved beforehand

  13. Continued Benefits Pensions Support • The LA acts as pension administrator for all maintained schools both for the Teachers Pension Scheme and the Local Government Pension Scheme for non teaching staff • Academies are responsible for all administrative responsibilities that fall to employers in terms of pension administration including liaising with Local Government Pension Scheme and Teachers’ Pension Scheme. Costs for LGPS is approximately 2% more and there will be more information after 2nd March 2012. • At the present time, Academies pay a higher rate of employer contributions than Kent Maintained Schools

  14. Increased Risks • The Academy Trust would be responsible for all premises issues and would need to purchase specialist advice and audit in relation to management issues eg asbestos • The Health and Safety at Work Act 1974, legislates that employers have a duty of care towards their employees, and the Management of Health and Safety at Work Regulations 1999 obliges organisations to conduct adequate risk assessments • Section 3(1): It shall be the duty of every employer to conduct his undertaking in such a way as to ensure, so far as is reasonably practicable, that persons not in his employment who may be affected thereby are not exposed to risks to their health or safety • Kent Schools are advised and supported by the Health and Safety team • Academies have to take full responsibility for the planning, delivery, monitoring and review for all health and safety issues for staff and pupils and would be responsible for accidents/fatalities

  15. Agreements • Documentation needed to support transfer: • A Commercial Transfer Agreement (CTA) • Process for transferring or leasing land • A Funding Agreement will also need to be signed with DfE

  16. Funding Agreement • The Funding Agreement covers: • Governance • Curriculum and Assessment • Pupil issues • Grants and Financial requirements • Memorandum and Articles of Association • Admissions • Duties in relation to pupils with SEN • Fixed term and permanent exclusions • 7 year notice period from 31st August of any year

  17. The Commercial Transfer Agreement (CTA) • This agreement ensures that liabilities that were the responsibility of the converting school/Governing Body transfer to the new Academy • It also ensures that liabilities that KCC had for the converting school, up until conversion, are covered • This is necessary as the Governing Body of the old school ceases to exist on the day before conversion and without this agreement, any liabilities incurred by the Governing Body of the old school would default to the Local Authority and therefore impact on all schools (School Standards and Framework Act 1998) • The CTA covers the transfer of • Staffing including terms and conditions • Contracts and assets

  18. The Commercial Transfer Agreement (CTA) • The CTA details all contracts in force including those negotiated by KCC on behalf of all schools – the majority of contracts will transfer to the Academy • The Governing Body also needs to provide staffing information including terms and conditions, copies of contracts, details of each employee etc. This information will need to be verified where KCC is the employer • The CTA also includes agreement concerning any loans from KCC

  19. Transfer of land or 125 year lease • Foundation Schools are able to apply for a direction by Secretary of State so that the land/property transfers directly from the school to the Academy (without involvement of KCC) • A Tenancy at Will agreement transfers allows for land and property to be transferred in the short term whilst a 125 year lease is negotiated

  20. Other processes involved • Schools will need to • (current funding approximately £25,000 for legal costs: • Establish their trust as a company by registering with Companies House • Establish a new bank account for the trust to ensure that the Academy will be able to receive funding • Transfer, renew or procure new contracts, service level agreements and licences • Ensure insurance is arranged

  21. The school would need to arrange for staff to be informed and consulted as they will be transferred under TUPE legislation and also consult relevant stakeholders • Transfer of school balances with agreement that the Academy would pay any outstanding invoices which relate to the school’s budget before transfer • Staff pensions – as the employer, the Academy would be responsible for remitting contributions to LGPS and Teachers’ Pension Scheme. • The timetable for each school will vary depending upon the complexity of the situation eg Sports Council Grants, the site used by KCC services etc and negotiations between KCC and school/Governing Body • From current experience an estimated timescale for all agreements to be in place would be in the region of 3 months – at least

  22. Funds are paid to academy monthly and so sometimes cash flow is can be difficult.

  23. Local Authority Central Services Equivalent Grant (LACSEG) • For 2011/12 financial year • Secondary Pupils £231 (£321 in 10/11) • Primary Pupils £235 (£341 in 10/11) • Responsible for: • SEN, Behaviour Support, Education Welfare and School Improvement Services • Staff costs including • termination of employment including early retirement, redundancy etc • maternity, jury service etc • School meals, kitchens • Statutory/regulatory duties

  24. OPTION 1 Traditional multi academy trust

  25. OPTION 2Umbrella trust model Bottom up model. The schools establish the umbrella trust, which could have different degrees of control and influence over them. Accountability to the Secretary of State is through individual funding agreements.

  26. OPTION 3Collaborative partnership model Secretary of State enters into funding agreements with individual schools. No shared governance structure between the schools. To what extent can a school be held accountable for the others’ performance? Individual collaborative agreement(s) between the schools. Potential tension between the needs/interests of the individual schools and those of the partnership. Collaborative agreements will need to take account of the fact that schools’ needs will change over time.

  27. Sponsored Academies • Currently 8 schools are going through the process • Statement of intent • The expression of interest confirms whether the governing body are applying for an academy order of it the Local Authority is to carry out statutory closure consultation and the sponsor to consult on academy proposals • Academies can ‘start’ 1st September, 1st January or 1st April • The DfE asks prospective sponsors for • Last four years attainment data • English and Mathematics progression data • Latest OFSTED ‘grade’ • Details of underperforming schools they are, or have been, working with

  28. Sponsored Academies • The transfer is supported by a Project Steering Group underpinned by work streams: • Education Vision and Strategy Support Group • HR/TUPE Support Group • Communication and Stakeholder Engagement Support Group • The timeline for a sponsored academy is up to 12 months • At the end of 2011, a new fast track process was introduced and is like a normal coverter process but with a sponsor

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