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<p>The Department requires a high level of accountability and transparency of academy
trusts. Academy trusts’ status as companies, charities, and public sector bodies means
they have a rigorous tri-partite framework. Individual trusts must publish their annual
audited accounts online, including details of their objectives, achievements and future
plans, and also set out what they have done to promote value for money in support
of those objectives, as part of their annual report and accounts.</p><p>The primary
responsibility for the oversight of academy trusts rests with the trustees themselves,
supported by clear financial management and governance requirements set by the Department
in Academy Trusts’ Funding Agreements, the Academy Trust Handbook and Academies Accounts
Direction. The Department expects academy trustees to deliver strong governance and
monitor the financial health of their trust or school and ensure it remains a going
concern. The transparency of finances in academy trusts enables the Department to
identify problems quickly and intervene where required.</p><p>Local Authorities are
the accountable body for maintained schools and, in line with national frameworks
and guidance set by the Department, they monitor and intervene in these schools to
reduce the risk of financial failure or misuse of funds. Each Local Authority has
a scheme for financing schools which sets out the financial relationship between it
and its maintained schools, and the Department publishes guidance setting out what
is required or permitted in schemes. Since 2019, the Department has implemented transparency
measures across the maintained school sector similar to those in academies, in order
to strengthen the arrangements for maintained schools.</p>
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