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The department has taken significant steps to further strengthen academies\u2019 accountability. This is reflected in the year on year updates to the Academies Financial Handbook which strengthen accountability and transparency in the sector. The department introduced new rules in April 2019 for the declaration or approval of related party transactions. Our requirements are the most robust processes for related party transactions in any sector in the country.<\/p>

The level of transparency for academies is higher than for local authority schools. The vast majority of trusts operate with a cumulative surplus and at the same time, over half a million pupils now study in \u2018good\u2019 or \u2018outstanding\u2019 sponsored academies that typically replaced underperforming local authority maintained schools.<\/p>

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Ofsted is responsible for regulating and inspecting settings that provide both care and accommodation, such as children\u2019s homes (including secure children\u2019s homes) and fostering services, in which the majority of children in care are accommodated.<\/p>

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Where it is judged to be in the child\u2019s best interests, local authorities are also permitted to accommodate children in care and care leavers aged 16 or 17 in \u2018other accommodation\u2019. This includes a range of settings such as semi-independent units, supported accommodation, hostels, foyers and supported lodgings. These settings provide accommodation with either on-site or floating support. \u2018Other accommodation\u2019 settings can provide a useful stepping-stone for young people who are increasingly able to make decisions for themselves but are not fully ready for the challenges of maintaining an independent tenancy. As these settings provide support, rather than care, Ofsted does not regulate them.<\/p>

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Where a local authority places a young person in unregulated provision, it must ensure that the accommodation is \u2018suitable\u2019. Suitable accommodation is defined in regulations, which state that, with regard to settings used to accommodate children in care the responsible authority should ensure that:<\/p>