EFSA publishes updated Academy Trust Handbook

The Education, Skills and Funding Agency (ESFA) has just published an updated Academy Trust Handbook 2024, effective from 1 September 2024. 

What changes have been introduced? 

• Finance leases – trusts can now enter into finance leases without prior consent from the ESFA if the lease category appears on DfE’s approved list. This change should give trusts greater freedom to manage their resources. 
   
• Consent for Electric Vehicle Salary Sacrifice (EVSS) – the previous handbook allowed salary sacrifice schemes to be set up for electric vehicles, in most cases without ESFA approval. The new handbook changes this position – from 1 September 2024, trusts will need to contact ESFA in the early stages of planning to offer a new scheme or before accepting any further employees onto an existing scheme. 
   
• Internal audits – trusts with an annual revenue income over £50 million should (and from 1 September 2025 must) deliver “internal scrutiny” through an in-house auditor or bought-in audit service. Trusts of this size should take steps to ensure the necessary scrutiny is in place before it becomes a requirement in 2025.
   
• Reserves policy – the handbook emphasises that trusts must have a clear plan for managing their reserves.   

Schedule of musts

The ESFA has also published a Schedule of Musts for 2024, compiling the Academy Trust Handbook requirements into one list. 

Trusts must comply with the handbook under the terms of their funding agreements. If you are responsible for managing a trust, it is important to familiarise yourself with the changes and requirements that will be introduced on 1 September 2024. 

For more information on the Academy Trust Handbook, please contact Joanne Davison using [email protected] or 0191 211 7958.