Overview of Academies www northumberland gov uk Copyright

Introduction Overview of the session • Context • Overview of what a MAT is • Governance structure for a multi academy trust • Messages coming from Df. E • Sponsor status • Conversion process www. northumberland. gov. uk Copyright 2009 Northumberland County Council

Academy types • Voluntary converters • Sponsored converters • Coasting schools and academies (new)

Academies - the numbers Overall numbers of open academies (as at February 2017) Phase of education Converter Sponsored Total Primary 2, 571 1, 094 3, 665 Secondary 1, 475 622 2, 097 Special 173 39 212 Alternative Provision 44 15 59 4, 263 1, 770 6, 033 Total • 22% of state-funded primary schools are academies • 62% of state-funded secondary schools are academies • 29% of all state-funded schools are academies www. northumberland. gov. uk Copyright 2009 Northumberland County Council

Academies - recent progress • 1 September 2016 – another 376 opened • 1 September 2015 – 324 • 1 September 2014 – 280 Schools in the pipeline to become academies (as at February 2017) Phase of education Converter Sponsored Total Primary 709 173 882 Secondary 126 81 207 Special 53 14 67 Alternative Provision 22 10 32 910 278 1, 188 Total www. northumberland. gov. uk Copyright 2009 Northumberland County Council

All schools can potentially become academies ‘performing well’ is determined by: Ofsted rating; exam results; comparison to similar schools Schools are below ‘the floor’ if both attainment and pupil progression is below a certain level Can convert to an academy Schools that are ‘performing well’ Schools that are not ‘performing well’ but are above ‘the floor’ Can convert in a Multi. Academy Trust (MAT) with a strong school Schools that are below the ‘floor’ Can convert in a Multi. Academy Trust (MAT) with a strong school Schools not performing well Join a MAT with an approved sponsor www. northumberland. gov. uk Copyright 2009 Northumberland County Council

What is a multi academy trust (MAT)? • Company limited by guarantee (rather than shares) – it has members rather than shareholders – it has trustees (company law directors/charity trustees) – multiple local governing bodies (LGBs) – governed by its articles of association • Non- profit making charitable trust – subject to charity law but not on the register of charities – no charity number because regulated by the Df. E, not the Charity Commission www. northumberland. gov. uk Copyright 2009 Northumberland County Council

What is a multi academy trust (MAT)? • The MAT is one academy company accountable for all the schools within the chain • Multiple academies within the MAT, each being state funded independent schools being accountable to the Secretary of State • Shared common identity • Funding comes directing from central government • All assets and resources within one legal structure – staff employed by MAT – owns premises under leases (and licences) – contracts made by MAT – all liabilities fall on the MAT • MAT wide contracts for services like – IT – catering – cleaning – HR support etc www. northumberland. gov. uk Copyright 2009 Northumberland County Council

Role of the members • To hold the board of trustees to account • To safeguard the ethos of the schools • Limited powers which will include the right to wind up the Academy Trust • Control changes in the academy company’s constitution – eg, amendments to the articles of association • Few obligations, largely a hands off eyes on role, similar to governance role of the Local Authority in maintained schools. • Appointment/Removal of Trustees • DFE do not consider it to be best practise to have employees of the MAT, to also be members. • Should be at least 3 members, but ideally www. northumberland. gov. uk 5. Copyright 2009 Northumberland County Council

Role of the directors / trustees • Individuals appointed to make strategic decisions about the day to day running of the academy trust. They have 3 names: – Directors - because academy trust is a company – Trustees - because academy trust is a charity – Governors - because the academy trust is responsible for the running of the school • Examples of duties – compliance with charity and company law – act within the company’s powers (articles) – exercise independent judgment – avoid conflicts of interest www. northumberland. gov. uk Copyright 2009 Northumberland County Council

Local governing body • Similar status to committee’s of a maintained governing body. • The only powers are those delegated by the board. • Formalised into a scheme of delegation www. northumberland. gov. uk Copyright 2009 Northumberland County Council

Common MAT structure Hands off role appoint / remove Trustee’s Members Minimum of 3 but 5 is preferred 1 Trustees (Minimum of 3) (No maximum but policy is 9 – 11) Local governing body per school 2 3 Up to [x] appointed by the Members School A LGB School B LGB [4] [5] [≥ 2 Parents (if 2 parent members not on LGBs)] School C LGB Overall strategic responsibility for the schools and the charity Similar status to committee’s of a maintained governing body www. northumberland. gov. uk Copyright 2009 Northumberland County Council

Who can be a member or trustee? • A person must be eligible at law to be a director • 19. 9% limit on local authority associated persons (applies to both members and trustees) • Maximum 1/3 of trustees to be employees of the academy company www. northumberland. gov. uk Copyright 2009 Northumberland County Council

Local authority associated persons • This is a major hurdle to a local authority wanting to be a sponsor • Covers – members – current – members – at any time in the last four years – officers – any employee and director / manager / similar role of a local authority controlled company • Kent County Council "spin-off" MAT www. northumberland. gov. uk Copyright 2009 Northumberland County Council

Messages coming from Df. E • Single school conversions no longer welcomed • MATs required to have a Chief Executive • Skills audit of proposed Directors – more commercial awareness • Heads no longer to be on the Board • Df. E not willing to relax the 19. 9% LAAPs rule www. northumberland. gov. uk Copyright 2009 Northumberland County Council

Sponsor status • Organisations including schools can apply for sponsor status – businesses – universities – charities – diocese – individuals – academy trusts • School to school support encouraged • Funding available as grants – school improvement services – due diligence and conversion costs – staff appointments • Sponsored schools join a sponsor MAT www. northumberland. gov. uk Copyright 2009 Northumberland County Council

Conversion process GB makes resolution to convert Submit online application Regional Schools Commissioner (RSC) decision – Academy Order Trust-to-be due diligence & legal work Sign Funding Agreement Open as an Academy Consultation can be carried out at any point but must be completed before the Funding Agreement is signed. GB can resolve and then consult Should take 4 -5 months to complete www. northumberland. gov. uk Copyright 2009 Northumberland County Council

What is the process for converting to academy status? The conversion process involves at least five elements: ● ● ● The setting up of a charitable company known as the academy trust with memorandum and articles of association – The memorandum sets out the names of the initial members of the academy trust and the articles are the rules that will govern the running of the company Putting in place a funding agreement between the academy trust and the Secretary of State for the running and funding of the academy school(s) – the Df. E will send the academy trust an ‘indicative letter of funding’ detailing the amount of grant that the academy trust will receive to cover the period from the conversion date to the end of August, this is usually 6 weeks before conversion. – In addition the school can apply for a conversion grant of £ 25 k to fund legal and others costs of conversion. Transferring the employment of the staff of the school(s) from the local authority or governing body (as applicable) to the academy trust in accordance with TUPE. – the current employer must inform any recognised trade unions or elected employee representatives of the fact that the transfer is to take place, when it is to take place and the reasons for it. – There is no obligation to consult unless it is intended that ‘measures’ will be taken. Measures is the legal term used to describe any material change in existing work practice www. northumberland. gov. uk or working conditions. Copyright 2009 Northumberland County Council

What is the Process for Converting to Academy Status? (Continued) • ● Negotiating a commercial transfer agreement (CTA) for the transfer of assets and contracts of the school(s) from the local authority and/or governing body to the academy trust. – This agreement must be signed by the academy trust and LA before a school can convert. – Df. E timescales require the agreement to be in place 1 month before conversion. Arranging the use of the land buildings of the school(s), usually either by way of a 125 year lease with the local authority or the transfer of the freehold of the land, the exact arrangement will depend on the type of school and current ownership of the land: – Community Schools - Generally the land is owned by LA so a 125 year lease will be granted to the academy. – Church School - land ownership is often split between LA and Diocese. The academy trust would be granted a 125 year lease for LA land usually the diocese would grant a licence to use the land. – Trust Schools - The freehold for the land will bewww. northumberland. gov. uk transferred from current foundation trust to the academy trust. Copyright 2009 Northumberland County Council