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ESFA Guidance

Academy trust related party transactions guidance (March 2019)

From Monday 1 April 2019, the ESFA introduces a new policy where academy trusts must declare a related party transaction before they agree it with your supplier. You must also seek approval from ESFA before you agree any related party transactions over £20,000.

The ESFA has published academy trust related party transactions guidance. This has information about what you need to do before completing the online form.

Introducing the reporting requirement does not change the scope of what is deemed a related party transaction.

The principles applying to related party transactions can be seen in section 3.10 of The Academies Financial Handbook.

The Financial Reporting Council’s FRS 102 The Financial Reporting Standard defines what is meant by a related party and what needs to be disclosed in financial statements. The Charity Commission’s Statement of Recommended Practice provides additional useful information.

Letter to academy trusts (March 2019)

Letter from Eileen Milner, chief executive of Education Skills Funding Agency (ESFA), to chair of trustees, accounting officers and chief financial officers of academy trusts.

The letter includes important information about arrangements for academy trust financial returns to the end of 2019.

Common themes arising from ESFA’s assurance work in 2017 to 2018 (March 2019)

This briefing note provides an overview of the key assurance findings from the ESFA assurance year 2017 to 2018, including the review of academy trust financial statements, academy funding audits and financial management and governance returns (FMGS).

Academy trust guide to reducing fraud

Information to help academy trusts manage the risk of fraud and report instances of fraud to the Education and Skills Funding Agency.

Academy trust financial management good practice guides

This suite of financial management good practice guides covers:

  • operating an academy trust as a going concern
  • choosing an external auditor for an academy trust
  • academy trust deficit recovery
  • academy trust risk management
  • leasing guidance for academy trusts
  • academy trust management accounting

These guides do not replace or modify any requirements set out in the Academies Financial Handbook and the Academies Accounts Direction. They aim to support trustees, accounting officers, and chief financial officers to develop good practice in your trust.

ESFA Updates