The Education and Skills Funding Agency (ESFA) has a robust intervention strategy that fits within the overall academy accountability framework. Intervention is always proportionate, risk-based and built on funding agreement and academies financial handbook non-compliance.<\/p>
Where the ESFA intervenes, we work with each trust to put in place a recovery process that underpins education provision with strong financial management and oversight. This can include the provision of funding, issuing a Financial Notice to Improve or, in the most serious cases, termination of the Funding Agreement.<\/p>
Where the provision of funding is considered, this will be done on a case-by case basis, as part of our intervention with the trust.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/4113", "label" : {"_value" : "Biography information for Nadhim Zahawi"} } , "answeringMemberConstituency" : {"_value" : "Stratford-on-Avon"} , "answeringMemberPrinted" : {"_value" : "Nadhim Zahawi"} , "dateOfAnswer" : {"_value" : "2019-06-24", "_datatype" : "dateTime"} , "groupedQuestionUIN" : {"_value" : "266825"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2019-06-24T15:54:35.41Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "60"} , "answeringDeptShortName" : {"_value" : "Education"} , "answeringDeptSortName" : {"_value" : "Education"} , "date" : {"_value" : "2019-06-19", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Academies: Finance"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Secretary of State for Education, what criteria (a) his Department and the Education and (b) the Skills Funding Agency use to assess the allocation of funding to academy trusts to protect the provision of education.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4263", "label" : {"_value" : "Biography information for Lucy Powell"} } , "tablingMemberConstituency" : {"_value" : "Manchester Central"} , "tablingMemberPrinted" : [{"_value" : "Lucy Powell"} ], "uin" : "266824"} , {"_about" : "http://data.parliament.uk/resources/1131213", "AnsweringBody" : [{"_value" : "Department for Education"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1131213/answer", "answerText" : {"_value" : "
Academy trusts have primary responsibility for their own financial affairs and where the Education and Skills Funding Agency intervene, we work with each trust to put in place a recovery process that underpins education provision with strong financial management and oversight. This can include the provision of deficit funding, issuing a financial notice to improve or, in the most serious cases, termination of the Funding Agreement.<\/p>
Where we have provided deficit funding as part of this process, this information is reflected in trusts\u2019 accounts. Attached is a document setting out deficit funding information for the most recent year available, financial year 2017-18. The department records deficit funding by the academy that funding is associated with and this is also reflected in the attached document.<\/p>
As of March 2018, the total number of academies for which deficit funding was agreed in financial year 2017-18, reflects less than 1% of all open academies, and less than 0.2% of the total funding allocated to academies for the 2017-18 academic year.<\/p>"} , "answeringMember" : {"_about" : "http://data.parliament.uk/members/4113", "label" : {"_value" : "Biography information for Nadhim Zahawi"} } , "answeringMemberConstituency" : {"_value" : "Stratford-on-Avon"} , "answeringMemberPrinted" : {"_value" : "Nadhim Zahawi"} , "attachment" : {"_about" : "http://data.parliament.uk/resources/1131213/answer/attachment/1", "fileName" : {"_value" : "263155_Academy_deficit_funding.pdf"} , "title" : "263155_table"} , "dateOfAnswer" : {"_value" : "2019-06-17", "_datatype" : "dateTime"} , "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"} , "questionFirstAnswered" : [{"_value" : "2019-06-17T15:22:37.6Z", "_datatype" : "dateTime"} ]} , "answeringDeptId" : {"_value" : "60"} , "answeringDeptShortName" : {"_value" : "Education"} , "answeringDeptSortName" : {"_value" : "Education"} , "date" : {"_value" : "2019-06-11", "_datatype" : "dateTime"} , "hansardHeading" : {"_value" : "Academies: Finance"} , "houseId" : {"_value" : "1"} , "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"} } ], "questionText" : "To ask the Secretary of State for Education, if he will list for each multi-academy trust that has had deficit funding approved (a) the amount of funding approved, (b) whether it is linked to a financial turnaround plan, (c) the period it covers, (d) the date on which it was approved by the Education and Skills Funding Agency or the Department and (e) the amount that is recoverable and non-recoverable in each case.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"} , "tablingMember" : {"_about" : "http://data.parliament.uk/members/4263", "label" : {"_value" : "Biography information for Lucy Powell"} } , "tablingMemberConstituency" : {"_value" : "Manchester Central"} , "tablingMemberPrinted" : [{"_value" : "Lucy Powell"} ], "uin" : "263155"} , {"_about" : "http://data.parliament.uk/resources/1019963", "AnsweringBody" : [{"_value" : "Department for Education"} ], "answer" : {"_about" : "http://data.parliament.uk/resources/1019963/answer", "answerText" : {"_value" : "
Information on academy transfers (sometimes referred to as \u2018rebrokerage\u2019), and the grant funding provided for those during the financial years 2013-14 to 2017-18 is published here:<\/p>
https://www.gov.uk/government/statistics/academy-transfers-and-funding-england-financial-year-2017-to-2018<\/a>.<\/p> In the financial year 2017-18, around a half of trust moves were single academy trusts joining multi-academy trusts (MATs). The department is actively encouraging single academy trusts to join MATs and we would expect to see this trend continue.<\/p>"}
, "answeringMember" : {"_about" : "http://data.parliament.uk/members/4113", "label" : {"_value" : "Biography information for Nadhim Zahawi"}
}
, "answeringMemberConstituency" : {"_value" : "Stratford-on-Avon"}
, "answeringMemberPrinted" : {"_value" : "Nadhim Zahawi"}
, "dateOfAnswer" : {"_value" : "2018-12-13", "_datatype" : "dateTime"}
, "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"}
, "previousAnswerVersion" : {"_about" : "http://data.parliament.uk/resources/1019963/answer/previousversion/91103", "answeringMember" : {"_about" : "http://data.parliament.uk/members/4113", "label" : {"_value" : "Biography information for Nadhim Zahawi"}
}
, "answeringMemberConstituency" : {"_value" : "Stratford-on-Avon"}
, "answeringMemberPrinted" : {"_value" : "Nadhim Zahawi"}
}
, "questionFirstAnswered" : [{"_value" : "2018-12-13T15:50:54.663Z", "_datatype" : "dateTime"}
]}
, "answeringDeptId" : {"_value" : "60"}
, "answeringDeptShortName" : {"_value" : "Education"}
, "answeringDeptSortName" : {"_value" : "Education"}
, "date" : {"_value" : "2018-12-04", "_datatype" : "dateTime"}
, "hansardHeading" : {"_value" : "Academies: Finance"}
, "houseId" : {"_value" : "1"}
, "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"}
}
], "questionText" : "To ask the Secretary of State for Education, how much has been spent on rebrokering academies in each of the last three years.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"}
, "tablingMember" : {"_about" : "http://data.parliament.uk/members/4263", "label" : {"_value" : "Biography information for Lucy Powell"}
}
, "tablingMemberConstituency" : {"_value" : "Manchester Central"}
, "tablingMemberPrinted" : [{"_value" : "Lucy Powell"}
], "uin" : "198836"}
, {"_about" : "http://data.parliament.uk/resources/1002594", "AnsweringBody" : [{"_value" : "Department for Education"}
], "answer" : {"_about" : "http://data.parliament.uk/resources/1002594/answer", "answerText" : {"_value" : " An advance to an academy trust is an early payment on its General Annual Grant, which is allocated to the trust for that year. It is not additional funding for the trust. With each advance, there will be a mutually agreed schedule of monthly reductions to offset the advance.<\/p> <\/p> The department continues to work with the sector to build capacity and expertise in financial management and support effective school resource management with specialist advisers, three year financial forecasting and developing buying hubs and national deals for all schools. Where an academy trust requires additional support, the Education and Skills Funding Agency will work with the trust to build its capacity and help it reach a stronger position.<\/p> <\/p>"}
, "answeringMember" : {"_about" : "http://data.parliament.uk/members/4113", "label" : {"_value" : "Biography information for Nadhim Zahawi"}
}
, "answeringMemberConstituency" : {"_value" : "Stratford-on-Avon"}
, "answeringMemberPrinted" : {"_value" : "Nadhim Zahawi"}
, "dateOfAnswer" : {"_value" : "2018-11-15", "_datatype" : "dateTime"}
, "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"}
, "questionFirstAnswered" : [{"_value" : "2018-11-15T14:33:15.243Z", "_datatype" : "dateTime"}
]}
, "answeringDeptId" : {"_value" : "60"}
, "answeringDeptShortName" : {"_value" : "Education"}
, "answeringDeptSortName" : {"_value" : "Education"}
, "date" : {"_value" : "2018-11-06", "_datatype" : "dateTime"}
, "hansardHeading" : {"_value" : "Academies: Finance"}
, "houseId" : {"_value" : "1"}
, "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"}
}
], "questionText" : "To ask the Secretary of State for Education, what his Department\u2019s policy is on the period in which a multi-academy trust must repay advances made by the Education and Skills Funding Agency; and if he will make a statement.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"}
, "tablingMember" : {"_about" : "http://data.parliament.uk/members/4356", "label" : {"_value" : "Biography information for Angela Rayner"}
}
, "tablingMemberConstituency" : {"_value" : "Ashton-under-Lyne"}
, "tablingMemberPrinted" : [{"_value" : "Angela Rayner"}
], "uin" : "188839"}
, {"_about" : "http://data.parliament.uk/resources/982526", "AnsweringBody" : [{"_value" : "Department for Education"}
], "answer" : {"_about" : "http://data.parliament.uk/resources/982526/answer", "answerText" : {"_value" : " The department requires a high level of transparency of academy trusts. All academy trusts must have an annual independent audit of their annual accounts by a registered statutory auditor and academy trusts must be open and transparent and publish their accounts. This is not a requirement of local authority maintained schools.<\/p> <\/p> Academy trusts must prepare annual accounts. This provides considerably more information than other schools and provides a far higher level of public scrutiny than is required of local authority schools. Their financial performance is instead summarised within the authorities\u2019 accounts. In addition, academy trusts are audited externally to international auditing standards, again this is not required of local authority schools.<\/p> <\/p> The department also publishes the \u2018Consolidated Annual Report and Accounts\u2019, based on returns from all academies in England. The reports are available for public scrutiny at GOV.UK. The most recent report covering 2015/16 is available at:<\/p> https://www.gov.uk/government/publications/academies-consolidated-annual-report-and-accounts-2015-to-2016<\/a>. We aim to publish the report for 2016/17 in October.<\/p>"}
, "answeringMember" : {"_about" : "http://data.parliament.uk/members/4113", "label" : {"_value" : "Biography information for Nadhim Zahawi"}
}
, "answeringMemberConstituency" : {"_value" : "Stratford-on-Avon"}
, "answeringMemberPrinted" : {"_value" : "Nadhim Zahawi"}
, "dateOfAnswer" : {"_value" : "2018-10-11", "_datatype" : "dateTime"}
, "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"}
, "questionFirstAnswered" : [{"_value" : "2018-10-11T16:38:25.943Z", "_datatype" : "dateTime"}
]}
, "answeringDeptId" : {"_value" : "60"}
, "answeringDeptShortName" : {"_value" : "Education"}
, "answeringDeptSortName" : {"_value" : "Education"}
, "date" : {"_value" : "2018-10-08", "_datatype" : "dateTime"}
, "hansardHeading" : {"_value" : "Academies: Finance"}
, "houseId" : {"_value" : "1"}
, "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"}
}
], "questionText" : "To ask the Secretary of State for Education, what steps his Department is taking to improve financial transparancy in academy trusts.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"}
, "tablingMember" : {"_about" : "http://data.parliament.uk/members/4658", "label" : {"_value" : "Biography information for Alex Sobel"}
}
, "tablingMemberConstituency" : {"_value" : "Leeds North West"}
, "tablingMemberPrinted" : [{"_value" : "Alex Sobel"}
], "uin" : "176650"}
, {"_about" : "http://data.parliament.uk/resources/982529", "AnsweringBody" : [{"_value" : "Department for Education"}
], "answer" : {"_about" : "http://data.parliament.uk/resources/982529/answer", "answerText" : {"_value" : " Academy trusts have primary responsibility for their own financial affairs and the department\u2019s relationship with them is based on the principle of self-governance, founded on a clear framework communicated and regulated by the Education and Skills Funding Agency (ESFA), through trusts\u2019 funding agreement and the Academies Financial Handbook. If academy trusts are governed well and in accordance with the framework then the Secretary of State\u2019s interaction with them will be limited. If not, then intervention may be required.<\/p> <\/p> Academy trusts must implement the right financial procedures including internal checks of compliance. They must have an audit committee, or equivalent, to manage their risks and oversee checks of systems of control. They must take ownership of balancing their budget and send a copy to the ESFA in advance of each year.<\/p> <\/p> These requirements are strengthened by external scrutiny \u2013 academy trusts\u2019 annual accounts must be reviewed by an independent auditor. This makes oversight more independent and more transparent than for local authority schools who are not required to prepare individual statutory accounts \u2013 their financial performance is instead summarised within the authorities\u2019 accounts.<\/p> <\/p> We are not, however, complacent and are continually looking to develop and strengthen our approach. The Academies Financial Handbook is strengthened annually to enhance the accountability and governance framework. The department published a new edition in June 2018 and the main changes were:<\/p> In adhering with accounting standards, academy trusts are required to disclose all related party transactions in their accounts, this being an illustration of the high levels of transparency that we require of academy trusts. There is no equivalent requirement for local authority schools to disclose such transactions, as they are not required to prepare or publish individual accounts.<\/p> <\/p> The referrals for both Bright Tribe and Collective Spirit Multi Academy Trust are currently being assessed. The referral for Wakefield City Academies Trust has been considered and the trust has disclosed the transactions in their published accounts, available on the Companies House website.<\/p> <\/p>"}
, "answeringMember" : {"_about" : "http://data.parliament.uk/members/4113", "label" : {"_value" : "Biography information for Nadhim Zahawi"}
}
, "answeringMemberConstituency" : {"_value" : "Stratford-on-Avon"}
, "answeringMemberPrinted" : {"_value" : "Nadhim Zahawi"}
, "dateOfAnswer" : {"_value" : "2018-07-10", "_datatype" : "dateTime"}
, "isMinisterialCorrection" : {"_value" : "false", "_datatype" : "boolean"}
, "questionFirstAnswered" : [{"_value" : "2018-07-10T16:56:48.91Z", "_datatype" : "dateTime"}
]}
, "answeringDeptId" : {"_value" : "60"}
, "answeringDeptShortName" : {"_value" : "Education"}
, "answeringDeptSortName" : {"_value" : "Education"}
, "date" : {"_value" : "2018-07-05", "_datatype" : "dateTime"}
, "hansardHeading" : {"_value" : "Academies: Finance"}
, "houseId" : {"_value" : "1"}
, "legislature" : [{"_about" : "http://data.parliament.uk/terms/25259", "prefLabel" : {"_value" : "House of Commons"}
}
], "questionText" : "To ask the Secretary of State for Education, pursuant to the Answer of 15 June 2018 to Question 152777 on Academies: Finance, which contentious connected party transactions were referred to the Education and Skills Funding Agency relating to (a) Collective Spirit Multi Academy Trust, (b) Wakefield City Academies Trust and (c) Bright Tribe multi-academy trust; and what action was taken as a result of each referral.", "registeredInterest" : {"_value" : "false", "_datatype" : "boolean"}
, "tablingMember" : {"_about" : "http://data.parliament.uk/members/4263", "label" : {"_value" : "Biography information for Lucy Powell"}
}
, "tablingMemberConstituency" : {"_value" : "Manchester Central"}
, "tablingMemberPrinted" : [{"_value" : "Lucy Powell"}
], "uin" : "161173"}
, {"_about" : "http://data.parliament.uk/resources/922441", "AnsweringBody" : [{"_value" : "Department for Education"}
], "answer" : {"_about" : "http://data.parliament.uk/resources/922441/answer", "answerText" : {"_value" : " In 2016/17, £11,115,184 was allocated to multi-academy trusts (MATs) in the north through the Regional Academy Growth Fund (RAGF). A list of these trusts and how much each MAT received is attached.<\/p> <\/p> A list of all MATs that received capacity funding through RAGF is listed on GOV.UK:<\/p>