Local Government Lawyer – Clarity around funding

These guidance notes are from 2010 – but they confirm the content of the guidance provided by government regarding the handling of deficits and surpluses when a school transfers to an academy

In summary

If the school is forced to become an academy due to poor performance –

  • and has a surplus – the surplus is transferred to the Sponsoring Academy Trust
  • and has a deficit – the LA has to clear the deficit as it was run up under their management.

If the school chooses to become an academy –

  • and has a surplus – the LA has to pay that surplus to the new Academy Trust once it is setup
  • and has a deficit – the council is paid the deficit by the government, who then alters the new trusts funding agreement to recover the money. In summary the deficit is transferred to the new Academy Trust once it is set up.

For more information please read the source article –

the-academies-bill–the-finer-details

Politics.co.uk – Briefing on Academies

When an LEA school becomes an academy, all its debts and deficits get cleared? – False

Advertisements

3 thoughts on “Local Government Lawyer – Clarity around funding

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s