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<p>Related party transactions involving academy trusts encompass both receipts by
and payments by trusts and so there are separate totals for each. This information,
including both payments made by and receipts received by academy trusts, was included
for the first time in the Academies Sector Annual Report and Accounts for the academic
year 2015 to 2016. The information is not collected by single-academy and multi-academy
trusts and so reflects all academy trusts.</p><p> </p><p><b>Payments made by academy
trusts to related parties:</b></p><table><tbody><tr><td><p> </p></td><td><p>Number
of Related Party Transactions</p></td><td><p>2015/16 payments to related parties (£000)</p></td></tr><tr><td><p>£1
to £50,000</p></td><td><p>2,636</p></td><td><p>24,627</p></td></tr><tr><td><p>£50,001
to £100,000</p></td><td><p>183</p></td><td><p>12,585</p></td></tr><tr><td><p>£100,001
to £200,000</p></td><td><p>119</p></td><td><p>16,006</p></td></tr><tr><td><p>£200,001
to £250,000</p></td><td><p>25</p></td><td><p>5,662</p></td></tr><tr><td><p>£250,001+</p></td><td><p>70</p></td><td><p>61,922</p></td></tr><tr><td><p>TOTAL</p></td><td><p>3,033</p></td><td><p>120,802</p></td></tr></tbody></table><p>
</p><p><b>Income received by academy trusts from related parties:</b></p><table><tbody><tr><td><p>
</p></td><td><p>Number of Related Party Transactions</p></td><td><p>2015/16 receipts
from related parties (£000)</p></td></tr><tr><td><p>£1 to £50,000</p></td><td><p>857</p></td><td><p>9,574</p></td></tr><tr><td><p>£50,001
to £100,000</p></td><td><p>135</p></td><td><p>9,541</p></td></tr><tr><td><p>£100,001
to £200,000</p></td><td><p>88</p></td><td><p>11,471</p></td></tr><tr><td><p>£200,001
to £250,000</p></td><td><p>16</p></td><td><p>3,565</p></td></tr><tr><td><p>£250,001+</p></td><td><p>59</p></td><td><p>39,066</p></td></tr><tr><td><p>TOTAL</p></td><td><p>1,155</p></td><td><p>73,217</p></td></tr></tbody></table><p>
</p><p>As the tables above show, £120,802,000 (62%) of the total value of all related
party transactions is accounted for by academy trusts making payments to related parties,
whilst £73,217,000 (38%) represents income received by academy trusts from related
parties. Income received from related parties includes; transactions with subsidiary
companies or shared services, diocesan education authorities, related charities as
well as donations or services provided by trustees, or trustees’ family members.</p><p>
</p><p>This information was not previously collected in this format and we do not
have comparable analysis for previous years.</p><p> </p><p>Academy trusts, including
multi-academy trusts, are required to disclose all related party transactions in their
audited annual accounts, which are publicly available for all years the academy trust
has been in operation. The department has recently introduced additional requirements
through the 2018 edition of the Academies Financial Handbook, in relation to related
party transactions, which will take effect from 1 April 2019. These will require trusts
to notify the department of any such transaction in advance of them occurring and
to seek approval for any where the value, individually or in aggregate, exceeds £20,000.</p>
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