Academy Udate Briefing - December 2010

A number of schools have chosen to seek to convert to Academy status by 1 April 2011, the last 'monthly' conversion date.  Many other schools are keeping a watchful eye, concerned over the uncertainty of life as an academy, and the impact on local authority services where other schools in the area convert.
 
Conversion by 1 April 2011 - Key Dates

14 January 2011: Submit Application to convert
2 March 2011: Submit draft Funding Agreement, Report on Title and Land arrangements for approval
11 March 2011: Signed Funding Agreement to DfE

There is a potential financial advantage for schools converting on or before 1 April 2011, as the level of funding is calculated on current funding levels. After 1 April 2011, schools will only be able to convert at the start of each term, as from 1 September 2011.

Extension of the Academy model

On 17 November 2010, the DfE announced an extension to the Academy model, from those ranked outstanding by Ofsted, to include schools ranked good with outstanding features.  In addition, all other schools can apply provided they work in partnership with a school which meets the automatic eligibility criteria.

Partnerships / Federations

There is no set definition of 'partnership', rather each group application will be considered on its own merits.  The DfE will take into account the ability of the partnership to provide strong management, leadership, teaching and learning, and whether a conversion to academy status would be beneficial in improving standards.

This means any group of schools can apply, as long as one of the schools is outstanding or good with outstanding features.  Additionally, any school, regardless of its Ofsted rating, will be able to apply to join an existing successful Academy Trust.

Groups do not need to federate to convert as a partnership or chain to take advantage of this extension.  Where a hard federation already exists, the Governing Body may submit an application which covers all member schools.  For groups which are not formally established, separate applications would need to be submitted together with their respective Governing Body resolutions, setting out details of the partnership where indicated on the application form.

Treasury consults on draft legislation to establish VAT refund scheme for academies

The Finance Bill 2011 creates a new section 33B of the VAT Act, providing a self-contained VAT refund scheme for academies.  This is to ensure academies can recover VAT on purchases for their non-business activities (education provision) in the same way as local authorities are able to do for maintained schools.  These changes will have effect for supplies and purchases made on or after 1 April 2011.

Ashfords are well placed to provide legal and practical advice to support schools through the conversion process, including in relation to charity and governance, public consultation, employment law  (management of the TUPE process), land transfer arrangements, completion of the model documents, education advice on the admissions, SEN and exclusions annexes; and the transfer of key supplier contracts.  If you would like to discuss any aspect of the process or our experience on an informal basis, please do not hesitate to contact us.

Ashfords LLP is regulated by the Solicitors Regulation Authority.  The information in this note is intended to be general information about English law only and not comprehensive.  It is not to be relied on as legal advice nor as an alternative to taking appropriate professional advice relating to your specific circumstances.