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Contents

SUMMARY SHEET  3

  1. INTRODUCTION 4

Definitions of types of Academies: 4

Other defined terms: 5

General Obligations of the Academy Trust 8

Governance  11

  1. RUNNING OF THE ACADEMIES 12

Length of school day and year 12

Teachers and staff 12

School meals  13

Pupil Premium   14

Charging  15

Exclusions  16

Curriculum   16

Assessment 17

  1. GRANT FUNDING 19

Recurrent Expenditure Grants  19

Capital Grant 20

General Annual Grant (GAG) 22

Earmarked Annual Grant (EAG) 24

Arrangements for paying GAG and EAG   24

Other relevant funding  25

  1. FINANCIAL AND ACCOUNTING REQUIREMENTS 26

General 26

Application of the Academies Financial Handbook  26

Budgeting for funds  27

Carrying forward of funds  28

Annual accounts and audit 28

Keeping financial records  29

Access to financial records  29

Acquiring and disposing of Publicly Funded Assets  30

Retention of proceeds from the disposal of capital assets  30

Transactions outside the usual planned range  31

Borrowing  31

  1. COMPLAINTS 32
  2. TERMINATION 33

Termination by either party  33

Change of Control of the Academy Trust 36

  1. OTHER CONTRACTUAL ARRANGEMENTS 36

Information  36

Access by the Secretary of State’s Officers  37

Notices  38

Contractual 39

APPENDICES   40

 

 

 

SUMMARY SHEET

 

Information about the Academy Trust:

Name of Academy Trust The Grange Trust
Address Bramley Grange Primary, Howard Road, Bramley, Rotherham, South Yorkshire, S66 2SY
Company Number Will be availbale upon incorporation of the Academy Trust.
Contact details for the Chair of Charity Trustees To be confirmed.

 

Please confirm whether additional clauses have been included (e.g. PFI clauses)

Descriptor Clause No. Applied Not used
None

 

 

1.            INTRODUCTION

Introduction and definitions

1.1         This Agreement is between the Secretary of State for Education (the “Secretary of State”) and The Grange Trust (the “Academy Trust”), and is an academy agreement as defined by section 1 of the Academies Act 2010.

1.2         The Academy Trust is a company limited by guarantee incorporated in England and Wales with company number [xxxxxxxx]. The Academy Trust is a charity and its directors are the Charity Trustees of the Academy Trust.

1.3         In order for the Academy Trust to establish and run a number of Academies in England, according to the provisions of the Academies Act 2010, and in order for the Secretary of State to make payments to the Academy Trust, the Academy Trust must meet the requirements in this Agreement and in each Supplemental Agreement that has been entered into by the Academy Trust and the Secretary of State in respect of each Academy.

1.4         In this Agreement, and (except as expressly provided otherwise) in each Supplemental Agreement, the capitalised words and expressions listed below will have the following meanings:-

Definitions of types of Academies:

An “Academy” is a school or educational institution established and run in accordance with the Academies Act 2010, and where this Agreement refers collectively to “Academies” run by the Academy Trust, this may include any of the following types of school or educational institution:

A “Free School” means an Academy which is a new educational institution within the meaning of section 9(1)(a) of the Academies Act 2010.

A “Mainstream Academy” means an Academy or a Free School which meets the requirements set out in section 1A(1) of the Academies Act 2010.

An “Alternative Provision Academy” means an Academy or a Free School which meets the requirements set out in section 1C(1) of the Academies Act 2010.

A “Special Academy” means an Academy or a Free School which meets the criteria set out in section 1A(2) of the Academies Act 2010.

A “Sponsored Academy” will be (unless otherwise stated) a Mainstream Academy which is established pursuant to an Academy Order under section 4 of the Academies Act 2010, which will be designated as a Sponsored Academy within the Supplemental Agreement applicable to that Academy, and as such certain conditions may apply to it.

Studio School” means a type of Free School, principally for pupils and students aged between 14 and 19, which places an emphasis on such pupils and students obtaining employability skills through project-based learning.

University Technical College” means a type of Free School, principally for pupils and students aged between 14 and 19, which provides technical education with the emphasis on a particular industry or scientific sector.

A “16-19 Academy” means an Academy or a Free School which meets the requirements set out in section 1B(1) of the Academies Act 2010.

Other defined terms:

16-19 Funding Guidance” means the guidance published by the EFA and amended from time to time, on behalf of the Secretary of State.

Academies Financial Handbook” means the document with that title published by the EFA and amended from time to time, on behalf of the Secretary of State.

Academy Financial Year” means the year from 1 September to 31 August, or a different period notified in writing by the Secretary of State.

Articles” means the Academy Trust’s articles of association.

Charity Trustees” means the directors  of the Academy Trust who are responsible for the general control and management of the administration of the Academy Trust.

Chief Inspector” means Her Majesty’s Chief Inspector of Education, Children’s Services and Skills.

Commissioner” means LAs and/or schools referring pupils to an Alternative Provision Academy for admission under the legal powers set out in the relevant Supplemental Agreement.

Control” means the power of an organisation or individual (‘A’) to ensure that the affairs of a another organisation are conducted in accordance with A’s wishes, whether through share ownership or voting power, by agreement, because of powers conferred by articles of association or any other document, or otherwise; and “Controls” will be construed accordingly.

DfE” means the Department for Education.

EFA” means the Education Funding Agency.

Guidance” means guidance issued by or on behalf of the Secretary of State, as amended from time to time.

Independent School Standards” means the independent school standards prescribed under section 157 of the Education Act 2002.

LA” means a local authority.

Local Governing Body” means the committee (if any) established by the Academy Trust in relation to an Academy or Academies, within the Academy Trust, in accordance with the Articles.

Parents” means parents or guardians.

Predecessor School” means the school which the Academy in question replaced, where applicable.

Publicly Funded Assets” means (a) assets or property funded wholly or partly using payments made by or on behalf of the Secretary of State, and (b) publicly funded land as defined in paragraph 22(3) of Schedule 1 to the Academies Act 2010.

Pupil Premium” means an amount equivalent to the pupil premium as defined in the School and Early Years Finance (England) Regulations 2013

Pupil Referral Unit” means any school established in England and maintained by a an LA which is specially organised to provide education for children falling within section 19(1) of the Education Act 1996.

Any reference to “Secretary of State” includes a reference to the EFA acting on the Secretary of State’s behalf.

Secretary of State’s consent” means the Secretary of State’s specific, prior written consent, which will not be unreasonably withheld or delayed.

SEN” means Special Educational Needs and the expressions “special educational needs” and “special educational provision” have the meaning set out in section 312 of the Education Act 1996.

Start-up Period” has the meaning as defined in the relevant Supplemental Agreement.

Supplemental Agreement” means an agreement supplemental to this Agreement for any Academy which the Academy Trust agrees to establish and maintain and the Secretary of State agrees to fund, which is substantially in the form of the supplemental funding agreement entered into by both parties at the time that this Agreement is signed.

“Teaching Staff” means teachers and the principal or head teacher employed at the Academy.

Termination Notice” means a notice sent by the Secretary of State to the Academy Trust, terminating this Agreement and each Supplemental Agreement on the date specified in the notice.

1.5         The Interpretation Act 1978 applies to this Agreement as it applies to an Act of Parliament.

1.6         A reference in this Agreement to any party or body includes its successors.

1.7         Any words following the terms ‘include’, ‘including’ or ‘in particular’ are by way of illustration, not limitation.

1.8         A reference in this Agreement to land includes any buildings or structures on the land.

1.9         A reference in this Agreement to pupils includes students at a 16-19 Academy.

1.10      Where any legislation, legal requirement or published guidance is referred to, unless otherwise stated, the following terms should be interpreted as follows:

  1. a) “school” refers to the relevant Mainstream Academy, Alternative Provision Academy, Special Academy or Studio School, and “educational institution” refers, where the context so admits, to a 16-19 Academy;
  2. b) the “head teacher” may refer to the Academy’s head teacher or principal;
  3. c) references to the “governing body” or “responsible authorities” will be taken to refer to the Academy Trust; and
  4. d) references to registered pupils will be treated as references to registered pupils at the Academy.

1.11      References in this Agreement or any Supplemental Agreement to any named legislation, legal requirement or published guidance should be taken to include any amendment to or replacement of it.

1.12      If any questions arise about how this Agreement should be interpreted, the answer will be decided by the Secretary of State, after discussion with the Academy Trust.

General Obligations of the Academy Trust

1.13    In order for the Academy Trust to establish and run independent schools and/or educational institutions in England, according to the terms of the Academies Act 2010, and in order for the Secretary of State to make payments to the Academy Trust, the Academy Trust must meet the conditions and requirements set out in this Agreement, and in each Supplemental Agreement for an Academy for which payments are claimed. In particular, the Academy Trust must ensure the Academies it runs meet the applicable requirements as follows:

  1. a) for Mainstream Academies, those specified in Section 1A of the Academies Act 2010;
  2. b) for Alternative Provision Academies, those specified in Section 1C of the Academies Act 2010;
  3. c) for 16-19 Academies, those specified in Section 1B of the Academies Act 2010;
  4. d) for Special Academies, those specified in section 1A(2) of the Academies Act 2010, and:
  5. the Academy Trust must ensure special educational provision is made at each of the Special Academies for one or more categories of SEN.  These categories may include, but are not limited to: Specific Learning Difficulties, Moderate Learning Difficulties, Severe Learning Difficulties, Profound and Multiple Learning Difficulties, Behaviour Emotional Social and Development Needs, Speech Language and Communication Needs, Autistic Spectrum Disorder, Visual Impairment, Hearing Impairment, Multi-Sensory Impairment, Physical Disability;
  6. the Academy Trust may not refuse to admit a child whose statement of SEN names one of the Special Academies on the sole basis that some, or all, of the child’s SEN do not feature in the categories referred to in clause 1.13(d)(i) of this agreement.

iii.         the Academy Trust must comply with all of the obligations imposed upon special academies by legislation, and with the obligations imposed upon the governing bodies of maintained special schools in Chapter 1 of Part 4 of the Education Act 1996.

  1. the Academy Trust must ensure that each Special Academy’s website includes details of the arrangements for the admission of disabled pupils; the steps taken to prevent disabled pupils from being treated less favourably than other pupils; the facilities provided to assist access to the Academy by disabled pupils; and the plan prepared by the Academy Trust under paragraph 3 of Schedule 10 to the Equality Act 2010. Disabled pupils in this paragraph mean pupils who are disabled for the purposes of the Equality Act 2010.

1.14      To the extent that it is compatible with the Academy Trust fulfilling its charitable purpose of advancing education in the United Kingdom for the public benefit, the Academy Trust must ensure that each of its Academies is at the heart of its community, promoting community cohesion and sharing facilities with other schools and/or other educational institutions and the wider community.

1.15      The Academy Trust must conduct its Academies within the terms and requirements of:

  1. a) the Articles;
  2. b) any legislation or legal requirement that applies to academies, including the Independent School Standards and legislation about meeting the needs of pupils with SEN and disabilities;
  3. c) the Academies Financial Handbook, as stated in clauses 4.6 to 4.8; and
  4. d) this Agreement, and any and all Supplemental Agreements.

1.16      The Academy Trust must, as soon as is reasonable, establish an appropriate mechanism for the receipt and management of donations for the purpose of its aims as specified in the Articles.

1.17      The Academy Trust must obtain the Secretary of State’s consent before applying to have an Academy designated as a school with religious character. The Secretary of State may at his discretion refuse or consent to the Academy Trust making such an application.

1.18      Unless the Academy Trust is designated as a school with a religious character under the Religious Character of Schools (Designation Procedure) (Independent Schools) (England) Regulations 2003, it agrees to be bound by the prohibition against discrimination in section 85 of the Equality Act 2010.

1.19      The Academy Trust is not required to publish information under this Agreement, or any Supplemental Agreement, if to do so would breach its obligations under the Data Protection Act 1998.

  • 20 The Academy Trust must ensure that its Academies meet the needs of individual pupils, including pupils with SEN and disabilities.

Governance

1.21      The Academy Trust will be governed by a board comprising the Charity Trustees of the Academy Trust (the “Board of Charity Trustees”).

1.22      The Board of Charity Trustees must have regard to any Guidance on the governance of academy trusts.

1.23      The Academy Trust must ensure that it engages with the relevant Local Governing Body (if any)  or representatives of each Academy, and that arrangements are in place for matters relating to the functioning of each Academy to be brought to the attention of the Charity Trustees of the Academy Trust.

1.24      The Academy Trust must provide to the Secretary of State the names of all new or replacement members of the Academy Trust, stating the date of their appointment and, where applicable, the name of the member they replaced as soon as is practicable and in any event within 14 days of their appointment.

1.25      The Academy Trust must not appoint any new or replacement members until it has first informed them, and they have agreed, that their names will be shared with the Secretary of State to enable him to assess their suitability.

1.26      If the Academy Trust establishes and maintains a Free School, it must, in addition to its obligations under clauses 1.24 and 1.25:

  1. a) provide to the Secretary of State the names of all new or replacement Charity Trustees of the Academy Trust, stating whether they have been appointed or elected, the date of their appointment or election and, where applicable, the name of the Charity Trustees they replaced as soon as is practicable and in any event within 14 days of their appointment or election; and
  2. b) not appoint or elect any new or replacement Charity Trustees until it has first informed them, and they have agreed, that their names will be shared with the Secretary of State to enable him to assess their suitability.

2.            RUNNING OF THE ACADEMIES

Length of school day and year

  • 1 The length of the school day and year will be the responsibility of the Academy Trust and for the purpose of this paragraph “school” also means a 16 to 19 Academy.

Teachers and staff

  • 2 In complying with the Independent School Standards, the Academy Trust must require enhanced Disclosure and Barring Service (“DBS”) certificates as appropriate for members of staff, supply staff, members of the Academy Trust, individual Charity Trustees and the chair of the Board of Charity Trustees.
  • 3 The Academy Trust must promptly submit to the Secretary of State, on request, the information contained in any enhanced DBS certificate that it receives.
  • 4 The Academy Trust must, where applicable, in respect of each of its Academies designate a member of staff at each Academy responsible for promoting the educational achievement of pupils at the Academy who are being looked after by an LA, and in doing so must comply with the law, regulations and guidance that apply to maintained schools.
  • 5 Teachers’ pay and conditions of service at the Academies are the responsibility of the Academy Trust.
  • 6 The Academy Trust must ensure that all teachers employed in each Academy have access to the Teachers’ Pension Scheme and, in so doing, must comply with the requirements of the scheme and with Fair Deal for staff pensions guidance published by HM Treasury.
  • 7 The Academy Trust must, in accordance with the Local Government Pension Scheme (Administration) Regulations 2008 and with Fair Deal for staff pensions guidance published by HM Treasury, ensure that all affected staff employed by the Academy Trust other than teachers have access to the Local Government Pension Scheme, unless an individual expressly chooses to opt out of the Scheme in accordance with the regulations.
  • 8 Where a member of the Teaching Staff employed at an Academy applies for a teaching post at another academy, a maintained school or a further education institution, the Academy Trust must at the request of the board of governors or academy trust of that other educational institution:
  1. a) advise in writing whether or not, in the previous two years, there has been any formal capability considerations or proceedings for that teacher at the Academy or the Predecessor School;
  2. b) give written details of the concerns which gave rise to any such consideration of that teacher’s capability, the duration of the proceedings and their outcome.

School meals

  • 9 Subject to clause 2.12, the Academy Trust must provide school lunches and free school lunches in accordance with the provisions of sections 512(3) and 512ZB(1) of the Education Act 1996 as if references in sections 512 and 512ZB to a local authority were to the Academy Trust and as if references to a school maintained by a local authority were to any of its Academies.
  • 10 The Academy Trust must comply with school food standards legislation as if its Academies were maintained schools.
  • 11 Where the Academy Trust provides milk to pupils, it must be provided free of charge to pupils who would be eligible for free milk if they were pupils at a maintained school.
  • 12 Clauses 2.9 to 2.11 do not apply to 16-19 Academies. For 16-19 Academies, the Academy Trust must comply with any Guidance in relation to free meals in the further education sector, as far as it applies to those Academies.

Pupil Premium

  • 13 For all of its Academies eligible for Pupil Premium, and for each Financial Year, the Academy Trust must publish, on the Academy’s website, , information about:
  1. a) the amount of Pupil Premium allocation that it will receive during the Academy Financial Year;
  2. b) what it intends to spend the Pupil Premium allocation on;
  3. c) what it spent its Pupil Premium allocation on in the previous Academy Financial Year;
  4. d) the impact of the previous year’s Pupil Premium allocation on educational attainment.
  • 14 For all of its Academies eligible for Year 7 literacy and numeracy catch-up premium funding, and for each Academy Financial Year,  the Academy Trust must publish, on the Academy’s website, information about:
  1. a) the amount of Year 7 literacy and numeracy catch-up premium grant that it will receive during the Academy Financial Year;
  2. b) what it intends to spend its Year 7 literacy and numeracy catch-up premium grant on;
  3. c) what it spent its Year 7 literacy and numeracy catch-up premium grant on in the previous Academy Financial Year;
  4. d) the impact of the previous year’s Year 7 literacy and numeracy catch-up premium grant on educational attainment, and how that effect was assessed.

Charging

  • 15 For all its Academies except 16 to 19 Academies, the Academy Trust must comply with sections 402, 450-457 and 459-462 of the Education Act 1996 with regard to public examinations, charging, providing information, inviting voluntary contributions and recovering civil debts, as if its Academies were maintained schools.
  • 16 There must be no charge for admission to or attendance at any of the Academies, and the Academies will only charge pupils where the law allows maintained schools to charge.
  • 17 Clause 2.16 does not prevent the Academy Trust receiving funds from an LA or a charity in respect of the admission and attendance of a pupil with SEN to an Academy.
  • 18 Notwithstanding clause 2.16, the Academy Trust may charge people who are not registered pupils at one of its Academies for education or use of facilities.
  • 19 Where an Academy provides a pupil with board and lodging, the Academy Trust must not charge the parent of that pupil more than the cost to the Academy Trust of providing the board and lodging, except as required by the Fees, Charges and Levies guidance in HM Treasury’s publication ‘Managing Public Money’.

Exclusions

  • 20 In respect of Mainstream Academies, and Special Academies which admit pupils without statements of SEN and Studio Schools, the Academy Trust may, if asked to by an LA, enter into an agreement which has the effect that where:
  1. a) the Academy admits a pupil who has been permanently excluded from a maintained school, the Academy itself or another academy with whom the LA has a similar agreement; or
  2. b) the Academy Trust permanently excludes a pupil from the Academy,

the arrangements for payment will be the same as if the Academy were a maintained school, under Regulations made under section 47 of the Schools Standards and Framework Act 1998.

Curriculum

  • 21 The curriculum is the responsibility of the Academy Trust.
  • 22 The Academy Trust must ensure that the curriculum provided in each Academy to pupils up to the age of 16 is balanced and broadly based. In respect of Mainstream and Special Academies, the Academy Trust must ensure that the curriculum includes English, mathematics and science. In respect of Alternative Provision Academies the Academy Trust must ensure that the curriculum includes English and mathematics.
  • 23 The Academy Trust must publish information in relation to the current curriculum provision at each Academy on that Academy’s website, including:
  1. the content of the curriculum;
  2. its approach to the curriculum;
  3. if applicable, the GCSE options and other Key Stage 4 qualifications offered by each Academy and, if applicable, any other qualifications offered by each Academy;
  4. the names of any phonics or reading schemes in operation for Key Stage 1 if applicable; and
  5. how parents (including parents of prospective pupils) and Commissioners (if applicable) can obtain further information about that Academy’s curriculum.
  • 24 The Academy Trust must not allow any view or theory to be taught as evidence-based if it is contrary to established scientific or historical evidence and explanations. This clause applies to all subjects taught at an Academy.
  • 25 The Academy Trust must provide for the teaching of evolution as a comprehensive, coherent and extensively evidenced theory. In respect of any Alternative Provision Academies and 16-19 Academies, the Academy Trust must do this where relevant to the curriculum.
  • 26 The Academy Trust must ensure that principles are promoted which support fundamental British values, of: respect for the basis on which the law is made and applied in England; respect for democracy and support for participation in the democratic processes; support for equality of opportunity for all; support and respect for the liberties of all within the law; and respect for and tolerance of different faiths and religious and other beliefs.
  • 27 The Academy Trust must ensure that careers guidance is provided at each of its Academies, in accordance with the requirements on maintained schools in the Education Act 1997.

Assessment

  • 28 The Academy Trust must:
  1. a) ensure that pupils and students at each of its Academies are entered for examinations, in line with the requirements on maintained schools in section 402 of the Education Act 1996;
  2. b) comply with the relevant Guidance, as it applies to maintained schools, in respect of each Mainstream Academy, each Special Academy and each Studio School to ensure that pupils take part in assessments, and in teacher assessments of pupils’ performance; and must do so for each Alternative Provision Academy unless there are exceptional reasons to do otherwise;
  3. c) ensure that students at each 16 to 19 Academy take part in assessments of students’ performance appropriate to the qualifications offered;
  4. d) report on assessments as the Secretary of State requires, or provide any information on assessments, on the same basis that maintained schools are required to provide the information;
  5. e) for all Key Stages, allow monitoring and moderation of the Academy’s assessment arrangements as required by the Secretary of State.
  • 29 Unless specifically approved in writing by the Secretary of State, the Academy Trust must not use GAG to offer any course of education or training which leads to a qualification, if that qualification is not approved by the Secretary of State for the purpose of section 96 of the Learning and Skills Act 2000.
  • 30 Unless informed by the Secretary of State that alternative information must be published, the Academy Trust must ensure that the following information is published on the relevant Academy’s website for each Mainstream Academy, for each Alternative Provision Academy, and where relevant for each Special Academy, and in respect of sub-paragraph b) where relevant for each Studio School:
  1. a) if applicable, the Academy’s most recent Key Stage 2 results as published by the Secretary of State in the School Performance Tables:
  2. “% achieving Level 4 or above in reading, writing and maths”;
  3. “% making expected progress in reading”, “% making expected progress in writing”, and “% making expected progress in maths”;

iii.         in relation to reading, “% achieving Level 5 or above”; and

  1. in relation to writing, “% achieving Level 5 or above”; and
  2. in relation to maths, “% achieving Level 5 or above”;
  3. b) if applicable, the Academy’s most recent Key Stage 4 results as published by the Secretary of State under the following column headings in the School Performance Tables:
  4. “% achieving 5 + A* – C GCSEs (or equivalent) including English and  maths GCSEs”;
  5. “% achieving the English Baccalaureate”; and

iii.         “% of pupils making expected progress”;

  1. c) information about where and how parents (including parents of prospective pupils) can access the most recent report about the Academy published by the Chief Inspector; and
  2. d) information as to where and how parents (including parents of prospective pupils) can access the School Performance Tables published by the Secretary of State.
  • 31 The Academy Trust must ensure that, in relation to any 16-19 Academies, any performance information requested by the Secretary of State is published on the Academy’s website.
  • 32 The Secretary of State may direct any Academy to participate in international education surveys, under the Education Act 1996, as if it were a maintained school

3.            GRANT FUNDING

Recurrent Expenditure Grants

3.1       The Secretary of State will pay grants towards Recurrent Expenditure, and may pay grants towards Capital Expenditure, for each Academy.

3.2       “Recurrent Expenditure” means any money spent on the establishment, conduct, administration and maintenance of an Academy which does not fall within Capital Expenditure.

3.3       In respect of Recurrent Expenditure, the Secretary of State will pay General Annual Grant (“GAG”) and may additionally pay Earmarked Annual Grant (“EAG”). These are two separate and distinct grants.

3.4       Except with the Secretary of State’s consent, the Academy Trust must not make commitments to spending which will have substantial implications for future grant. No decision by the Academy Trust will commit the Secretary of State to paying any particular amount of grant.

Capital Grant

3.5       The Secretary of State may pay a grant (“Capital Grant”) to the Academy Trust for the purpose of spending on items of Capital Expenditure.

3.6       “Capital Expenditure” means expenditure on:

  1. a) acquiring land and buildings;
  2. b) erecting, enlarging, improving or demolishing any building including fixed plant, installation, wall, fence or other structure, or any playground or hard standing;
  3. c) installing electrical, mechanical or other services other than necessary repairs and maintenance due to normal wear and tear;
  4. d) buying vehicles;
  5. e) installing and equipping premises with furnishings and equipment, other than necessary repairs and maintenance due to normal wear and tear;
  6. f) installing and equipping premises with computers, networking for computers, operating software and ICT equipment, other than necessary updates or repairs and maintenance due to normal wear and tear;
  7. g) providing and equipping premises, including playing fields and other facilities for social activities and physical recreation other than necessary repairs and maintenance due to normal wear and tear;
  8. h) works of a permanent character other than the purchase or replacement of minor day-to-day items;
  9. i) any major repairs or replacements which are specified as capital expenditure in any grant letter relating to them;
  10. j) such other items (whether like or unlike any of the foregoing) of a substantial or enduring nature which the Secretary of State agrees are capital expenditure for the purposes of this Agreement;
  11. k) professional fees properly and reasonably incurred in connection with the provision of any of the above;
  12. l) VAT and other taxes payable on any of the above.

3.7       Any Capital Grant funding that may be made available to the Academy Trust will be notified to it by the Secretary of State.

3.8       The Academy Trust must spend Capital Grant only on items of Capital Expenditure approved by the Secretary of State and in accordance with conditions specified by the Secretary of State. Further, the Academy Trust must provide evidence that it has obtained all planning and other consents required for any proposed building and infrastructure development to be funded using Capital Grant.

3.9       In order to receive payments of Capital Grant, the Academy Trust must provide supporting invoices and certificates in the format specified by the Secretary of State.

3.10    The Academy Trust must provide an account of Capital Grant received and associated spending on Capital Expenditure using Capital Grant in the Academy Trust’s financial statements and any financial reports or returns that the Secretary of State may require.

3.11    If in its use of Capital Grant the Academy Trust does not comply with this Agreement or any of the conditions specified by the Secretary of State, or the project does not accord with the original specification or has not been completed, the Secretary of State may at his discretion not make any further payments of Capital Grant and require the Academy Trust to repay all or part of the Capital Grant.

General Annual Grant (GAG)

3.12    The Secretary of State will pay GAG to the Academy Trust towards the normal running costs or capital expenditure of each of its Academies, including:

  1. a) teachers’ salaries and related costs (including pension contributions, full and part-time teaching staff and payments in respect of seconded teachers);
  2. b) non-teaching staff salaries and related costs (including pension contributions);
  3. c) employees’ expenses;
  4. d) buying, maintaining, repairing and replacing teaching and learning materials and other educational equipment, including books and stationery;
  5. e) buying, maintaining, repairing and replacing other assets including ICT equipment and software, sports equipment and laboratory equipment and materials;
  6. f) examination fees;
  7. g) repairs, servicing and maintenance of buildings (including redecoration, heating, plumbing, lighting etc.); maintenance of grounds (including boundary fences and walls); insurance; cleaning materials and contract cleaning; water and sewerage; fuel and light (including electricity and gas); rents; rates; purchase, maintenance, repairs and replacement of furniture and fittings;
  8. h) medical equipment and supplies;
  9. i) staff development (including in-service training);
  10. j) curriculum development;
  11. k) the costs of providing school meals for pupils (including the cost of providing free school lunches to pupils who are eligible to receive them), and any discretionary grants to pupils to meet the cost of pupil support, including support for pupils with SEN or disabilities;
  12. l) administration; and
  13. m) establishment expenses and other institutional costs.

3.13    GAG for each Academy Financial Year for each Mainstream Academy, Special Academy and Studio School will include:

  1. a) funding equivalent to that which would be received by a maintained school with similar characteristics, determined by the Secretary of State and taking account of the number of pupils at the Academy;
  2. b) funding to cover necessary functions which would be carried out by the relevant LA if the Academy were a maintained school;
  3. c) payment of any additional specific grants made available to maintained schools, where the Academy meets the criteria for those grants, and at the Secretary of State’s discretion; and
  4. d) funding for any other costs to the Academy which the Secretary of State considers necessary.

3.14    The Academy Trust must use GAG only for maintaining, carrying on, managing and developing the Academy in question in accordance with this Agreement and the relevant Supplemental Agreement, except where the Secretary of State has given specific consent for the Academy Trust to use GAG for another charitable purpose.

3.15    In particular (but without limitation) the Academy Trust must not use GAG for:

  1. a) education and training for adults who are not pupils of the Academy, other than staff professional development;
  2. b) nursery provision for which parents are charged a fee;
  3. c) nursery provision to children outside of the relevant Academy’s age range as stated in the applicable Supplemental Agreement;
  4. d) Children’s Centres;
  5. e) any additional cost of providing sport and leisure facilities for a purpose not permitted in clause 3.14.

Earmarked Annual Grant (EAG)

3.16    The Secretary of State may pay EAG to the Academy Trust for specific purposes, agreed between the Secretary of State and the Academy Trust, and as described in the relevant funding letter.  The Academy Trust must spend EAG only in accordance with that letter.

3.17    Where the Academy Trust is seeking a specific EAG for any Academy Financial Year, it must send a letter outlining its proposals and the reasons for the request to the DfE.

Arrangements for paying GAG and EAG

3.18    Before each Academy Financial Year, the Secretary of State will notify the Academy Trust of the GAG and EAG amounts in respect of each Academy which, subject to parliamentary approval, the Secretary of State plans for that Academy Financial Year and how these have been calculated.

3.19    The amounts of GAG for an Academy Financial Year will be determined annually by the Secretary of State, and notified to the Academy Trust in a funding letter sent before the relevant Academy Financial Year begins (the “Annual Letter of Funding”).

3.20    Amounts of EAG will be notified to the Academy Trust wherever possible in the Annual Letter of Funding or as soon as is practicable afterwards.

3.21    The Annual Letter of Funding will, as well as stating the grant amounts, set out how these have been calculated. It will not include grants which cannot be calculated in time because there is not enough information, or for other administrative reasons. Any such grants will be notified as soon as practicable.

3.22    The Secretary of State will pay GAG in monthly instalments on or before the twenty-fifth day of each month, to fund the salaries and other payroll costs for the relevant month of all monthly paid employees and all other costs payable during the following month. The detailed arrangements for payment will be set out in the Annual Letter of Funding, or an equivalent.

3.23    If GAG or EAG is miscalculated:

  1. a) because of a mistake by the Secretary of State, which leads to an underpayment to the Academy Trust, the Secretary of State will correct the underpayment in the same or subsequent Academy Financial Years;
  2. b) because the Academy Trust provided incorrect information, which leads to an underpayment to the Academy Trust, the Secretary of State may correct the underpayment in the same or subsequent Academy Financial Years;
  3. c) for any reason which results in an overpayment to the Academy Trust, the Secretary of State may recover any overpaid grant in the same or subsequent Academy Financial Years, having considered all the relevant circumstances and taking into account any representations from the Academy Trust.

Other relevant funding

3.24.  The Academy Trust may also receive additional funding from an LA under an agreement with that LA for the provision for pupils who require high levels of support for SEN. The Academy Trust must ensure that all provision required under that agreement is provided for those pupils.

4.            FINANCIAL AND ACCOUNTING REQUIREMENTS

General

4.1       In order for the Secretary of State to provide grant funding to the Academy Trust, the Academy Trust must be fulfilling the financial and reporting requirements in this Agreement, and any Supplemental Agreements.

4.2       In its conduct and operation, the Academy Trust must apply financial and other controls which meet the requirements of regularity, propriety and value for money.

4.3       The Academy Trust must appoint an accounting officer and must notify the Secretary of State of that appointment. The Academy Trust must assign to the accounting officer the responsibilities of the role set out in the Academies Financial Handbook and HM Treasury’s publication ‘Managing Public Money’.

4.4       The Academy Trust must abide by the requirements of, and have regard to the guidance for, charities and charity trustees issued by the Charity Commission and, in particular, the Charity Commission’s guidance on ‘Protecting Charities from Harm’. Any references in this document which require charity trustees to report to the Charity Commission should instead be interpreted as reporting to the body or person appointed as the principal regulator under the Charities Act 2011.

4.5       The Academy Trust must abide by the requirements of the current 16 to 19 Funding Guidance published by the Secretary of State, in respect of any provision for students who are above compulsory school age until the academic year in which they reach the age of 19.

Application of the Academies Financial Handbook

4.6       In relation to the use of grant paid to the Academy Trust by the Secretary of State, the Academy Trust must follow the requirements of, and have regard to the guidance in, the Academies Financial Handbook.

4.7       The Academy Trust must have adequate insurance cover or opt in to the Department’s arrangements as set out in the Academies Financial Handbook.

4.8       The Academy Trust must submit information about its finances to the Secretary of State in accordance with the Academies Financial Handbook, or as otherwise specified by the Secretary of State.

Budgeting for funds

4.9       The Academy Trust must balance its budget from each Academy Financial Year to the next. For the avoidance of doubt, this does not prevent the Academy Trust from:

  1. a) subject to clause 4.14, carrying a surplus from one Academy Financial Year to the next; or
  2. b) carrying forward from previous Academy Financial Years sufficient cumulative surpluses on grants from the Secretary of State to meet an in-year deficit on such grants in a subsequent financial year, in accordance with clauses 4.14-4.16 and 3.K of the relevant Supplemental Agreement; or
  3. c) incurring an in-year deficit on funds from sources other than grants from the Secretary of State in any Academy Financial Year, provided it does not affect the Academy Trust’s responsibility to ensure that its Academies balance their respective overall budgets from each Academy Financial Year to the next.

4.10    The Academy Trust may spend or accumulate funds from private sources or public sources other than grants from the Secretary of State for the benefit of the Academy Trust as it sees fit. Any surplus from private or public sources other than grants from the Secretary of State must be separately identified in the Academy Trust’s accounts.

4.11    For clarity, and in accordance with the intent of parity of funding with LA maintained schools, in circumstances where a Predecessor School had a deficit balance and the DfE has settled this with the relevant LA, that amount will be recovered from the Academy Trust’s GAG over a period not normally exceeding 3 years (unless the Secretary of State’s in his discretion decides otherwise) after the Academy opened.

4.12    The Academy Trust’s budget must be approved for each Academy Financial Year by the Board of Charity Trustees.

4.13    The approved budget must be submitted to the Secretary of State in a form, and by a date, to be notified by the Secretary of State.

Carrying forward of funds

4.14    At the end of any Academy Financial Year the Academy Trust may carry forward unspent GAG from previous Academy Financial Years without limit (unless a limit is specified in the Academies Financial Handbook, or otherwise as specified in writing by the Secretary of State, in which case that limit will apply).

4.15    The Academy Trust must use any GAG carried forward only for purposes of GAG as set out in this agreement, or otherwise as specified in the Academies Financial Handbook or in writing by the Secretary of State.

4.16    Any additional grant provided for an Academy’s Start-Up Period may be carried forward, without limitation or deduction, until the Start-Up Period ends.

4.17    Any unspent grant not allowed to be carried forward under clauses 4.14-4.16 and 3.K of the relevant Supplemental Agreement may be taken into account in the payment of subsequent grant.

Annual accounts and audit

4.18    The Academy Trust must prepare and file with Companies House the annual reports and accounts required by the Companies Act 2006.

4.19    In addition, the Academy Trust must prepare its annual reports and accounts for each Academy Financial Year:

  1. a) in accordance with the Charity Commission’s ‘Accounting and Reporting by Charities: Statement of Recommended Practice’, as if the Academy Trust was a registered charity; and
  2. b) otherwise as the Secretary of State directs.

4.20    The Academy Trust’s accounts must be audited annually by independent auditors appointed in line with the Academies Financial Handbook.

4.21    The accounts must carry an audit report stating whether, in the opinion of the auditors, the accounts show a true and fair view of the Academy Trust’s affairs.  The accounts must also be supported by such other audit reports, relating to the use of grants and other matters, as the Secretary of State directs.

4.22    The Academy Trust’s annual report must include the names of all members of the Academy Trust who served during the year.

4.23    The Academy Trust’s annual reports and accounts, and the auditor’s reports, must be submitted to the Secretary of State by 31 December each Academy Financial Year, or as otherwise specified by the Secretary of State. The Academy Trust must publish on its website its annual reports and accounts, current memorandum of association, Articles and Funding Agreement and the names of its Charity Trustees and members. The Secretary of State may also publish the Academy Trust’s annual reports and accounts, and the audit report, as he sees fit.

Keeping financial records

4.24    The Academy Trust must keep proper accounting records. Statements of income and expenditure, statements of cash flow and balance sheets must be produced in such form and frequency as the Secretary of State directs.

Access to financial records

4.25    The books of accounts and all relevant records, files and reports of the Academy Trust, including those relating to financial controls, must be open at all reasonable times to officials of the DfE and the National Audit Office, and to their agents and contractors, for inspection or carrying out value for money studies. The Academy Trust must give those officials and contractors reasonable assistance with their enquiries.  For the purposes of this clause ‘relevant’ means in any way relevant to the provision and use of grants provided by the Secretary of State under this Agreement.

4.26    The Secretary of State may, at his expense, instruct auditors to report to him on the adequacy and effectiveness of the Academy Trust’s accounting systems and internal controls to standards determined by the Secretary of State, and to make recommendations for improving the Academy Trust’s financial management.

Acquiring and disposing of Publicly Funded Assets

4.27    In relation to Publicly Funded Assets, the Academy Trust must not, without the Secretary of State’s consent:

  1. a) acquire or dispose of freehold land;
  2. b) take up or grant a leasehold of land;

dispose of any other class of capital assets except as permitted in the Academies Financial Handbook, and subject to Part 3 of Schedule 1 to the Academies Act 2010.

4.28    The Academy Trust must give 30 days’ notice to the Secretary of State, whether or not the circumstances require his approval, of its intention to take any of the actions in clause 4.27.

Retention of proceeds from the disposal of capital assets

4.29    Except as permitted in the Academies Financial Handbook, if the Academy Trust sells capital assets which were acquired or enhanced wholly or partly using payments made by or on behalf of HM Government the Academy Trust must pay to the Secretary of State, at his request, an amount of the sale proceeds equivalent to the proportion of the original cost of the acquisition or enhancement which was met by or on behalf of HM Government.

4.30    If the Academy Trust sells a capital asset which was transferred to it for no or nominal consideration from an LA, a Predecessor School or a Predecessor School’s foundation, the Academy Trust must, if required by the Secretary of State, pay all or part of the sale proceeds to the LA or to the Secretary of State, taking into account the amount of the proceeds to be reinvested by the Academy Trust.

Transactions outside the usual planned range

4.31    In relation to Publicly Funded Assets, the Academy Trust must not, without the Secretary of State’s consent:

  1. a) give any guarantees, indemnities or letters of comfort, except such as are given in normal contractual relations;
  2. b) write off any debts or liabilities owed to it; or
  3. c) offer to make any special payments as defined in HM Treasury’s publication ‘Managing Public Money’ (including ex gratia payments, staff severance payments and compensation payments)

above any values specified in the Academies Financial Handbook.

4.32    The Academy Trust must give the Secretary of State 30 days’ notice, whether or not the circumstances require his consent, of its intention to do any of the actions in clause 4.31.

4.33    The Academy Trust must promptly notify the Secretary of State of any loss arising from suspected theft or fraud in line with the requirements in the Academies Financial Handbook, or otherwise specified by the Secretary of State.

Borrowing

4.34    Except as permitted in the Academies Financial Handbook, the Academy Trust must not borrow against Publicly Funded Assets, or so as to put Publicly Funded Assets at risk, without the Secretary of State’s consent.

5.            COMPLAINTS

5.1       With regards to a Mainstream Academy, a Special Academy an  Alternative Provision Academy or a 16-19 Academy, if a complaint is made about matters arising wholly or partly before the Academy opened, and all or part of that complaint was investigated by the Local Government Ombudsman under Part III of the Local Government Act 1974 (“Part III”), or could have been investigated under Part III if the Predecessor School/Pupil Referral Unit had remained a maintained school/Pupil Referral Unit, the Academy Trust:

  1. a) must abide by the provisions of Part III as if the Academy were a maintained school/Pupil Referral Unit;
  2. b) agrees that the Secretary of State will have the power to investigate the subject of the complaint as if it had taken place after the Academy opened; and
  3. c) must act in accordance with any recommendation from the Secretary of State as if that recommendation had been made under Part III and the Academy were a maintained school/Pupil Referral Unit.

5.2       With regards to a Mainstream Academy, a Special Academy or a 16-19 Academy, if the Secretary of State could have given an order or a direction under section 496 or 497 of the Education Act 1996 to the governing body of the Predecessor School  and that order or direction related to matters occurring within the 12 months immediately before the Academy opened, the Academy Trust:

  1. a) agrees that the Secretary of State may give orders or directions to the Academy Trust as though the Academy were a maintained school and sections 496 and 497 applied to the governing body of that maintained school; and
  2. b) must act in accordance with any such order or direction from the Secretary of State.

5.3       If at the time of the opening of any Mainstream Academy, Special Academy, Alternative Provision Academy or 16-19 Academy the investigation of a complaint made to the governing body of the Predecessor School/Pupil Referral Unit has not yet been completed, the Academy Trust must continue to investigate that complaint in accordance with the complaints procedures established by that governing body.

5.4       If a complaint is made to the Academy Trust about matters arising in whole or in part during the 12 months prior to the opening of any Mainstream Academy, any Special Academy any Alternative Provision Academy or any 16-19 Academy the Academy Trust agrees to investigate that complaint as if the matter complained of had taken place after the Academy opened.

6.            TERMINATION

  • 1 This Agreement will commence on the date of delivery and continue until terminated in accordance with clauses 6.2-6.7, or until all Supplemental Agreements have terminated.

Termination by either party

  • 2 The Secretary of State may serve a Termination Notice if any of the following events occur, or if he considers that there is a serious risk that any of them may occur:
  1. a) the Academy Trust calls a formal or informal meeting of its creditors or enters into any formal or informal composition or arrangement with its creditors; or
  2. b) the Academy Trust proposes a voluntary arrangement within Section 1 of the Insolvency Act 1986 (as amended); or
  3. c) the Academy Trust is unable to pay its debts within the meaning of Section 123 of the Insolvency Act 1986 provided that, for the purposes of this clause,  Section 123 (1)(a) of the Insolvency Act 1986 will have effect as if £10,000 was substituted for £750.  The Academy Trust will not be deemed unable to pay its debts for the purposes of this clause if any such demand as is mentioned in the said Section is being contested in good faith by the Academy Trust; or
  4. d) the Academy Trust has a receiver and manager (except those appointed by the Charity Commission under the Charities Act 2011), administrator or administrative receiver appointed over all or part of its undertakings, assets or income; or
  5. e) any distraint, execution or other process is levied or enforced on any of the Academy Trust’s property and is not paid out, withdrawn or discharged within 15 business days; or
  6. f) the Academy Trust has passed a resolution for its winding up; or
  7. g) an order is made for the winding up or administration of the Academy Trust.
  • 3 The Academy Trust must promptly notify the Secretary of State, with an explanation of the circumstances, after receiving any petition which may result in an order for its winding up or administration.
  • 4 If
  1. a) any Charity Trustee or member of the Academy Trust refuses to consent to any checks required under this Agreement, or as otherwise requested by the Secretary of State; or
  2. b) the Secretary of State determines that any Charity Trustee or member of the Academy Trust is unsuitable,

the Secretary of State may:

  1. direct the Academy Trust to ensure that the Charity Trustee or member resigns or is removed within 42 days, failing which the Secretary of State may serve a Termination Notice; or
  2. serve a Termination Notice.
  • 5 For the purposes of clause 6.4 a Charity Trustee or member of the Academy Trust will be “unsuitable” if that Charity Trustee or member:
  1. a) has been convicted of an offence;
  2. b) has been given a caution in respect of an offence;
  3. c) is subject to a relevant finding in respect of an offence; or
  4. d) has engaged in relevant conduct,

as a result of which, the Secretary of State considers that that Charity Trustee or member is unsuitable to take part in the management of the Academies.

  • 6 For the purposes of clause 6.5:
  1. a) a Charity Trustee or member of the Academy Trust will be subject to a “relevant finding” in respect of an offence if:
  2. that Charity Trustee or member has been found not guilty of the offence by reason of insanity;
  3. that Charity Trustee or member has been found to be under a disability and to have done the act charged against them in respect of the offence; or

iii.              a court outside the United Kingdom has made a finding equivalent to that described in paragraphs (i) and (ii) above.

  1. b) “relevant conduct” is conduct by a Charity Trustee or member of the Academy Trust which is:
  2. aimed at undermining the fundamental British values of democracy, the rule of law, individual liberty and mutual respect and tolerance of those with different faiths and beliefs; or
  3. found to be in breach of professional standards by a professional body; or

iii.              so inappropriate that, in the opinion of the Secretary of State, it makes that Charity Trustee or member unsuitable to take part in the management of the Academy.

Change of Control of the Academy Trust

  • 7 The Secretary of State may at any time, subject to clause 6.8, serve a Termination Notice if there is a change:
  1. a) in the Control of the Academy Trust; or
  2. b) in the Control of a legal entity that Controls the Academy Trust.
  • 8 Where a person (‘P’) is a member or director of a body corporate (as a corporation sole or otherwise) by virtue of an office, no change of Control arises merely by P’s successor becoming a member or director in P’s place.
  • 9 The Academy Trust must promptly notify the Secretary of State if there is a proposed or actual change of Control of the Academy Trust, or of a legal entity that Controls the Academy Trust.
  • 10 When notifying the Secretary of State further to clause 6.9, the Academy Trust must seek his agreement that, if he is satisfied with the change of Control, he will not exercise his right to terminate this Agreement further to clause 6.7.

7.            OTHER CONTRACTUAL ARRANGEMENTS

Information

  • 1 The Academy Trust must promptly provide to the Secretary of State any information about the Academy Trust, or any of its Academies, which he regards as necessary to fulfil his role and responsibilities.
  • 2 The Secretary of State will give the Academy Trust any information it reasonably requires of him for the running of its Academies.

Access by the Secretary of State’s Officers

  • 3 The Academy Trust must allow DfE officials to enter any of its Academies at any reasonable time. All records, files and reports relating to the running of each Academy must be available to them at any reasonable time. Two DfE officials may attend and speak at any meetings of each Academy’s Local Governing Body, of the Academy Trust’s Board of Charity Trustees or any other meetings of the Charity Trustees of the Academy Trust, but will withdraw from any discussion of an Academy’s or the Academy Trust’s relationship with the Secretary of State or any discussion of bids for funding to the Secretary of State.
  • 4 The following documents must be provided to any interested party or the Secretary of State on request:
  1. a) the agenda for every meeting of the Board of Charity Trustees, any Local Governing Body or any committee to which the Board of Charity Trustees delegates any of its functions;
  2. b) the draft minutes of every such meeting, if they have been approved by the chairman of that meeting;
  3. c) the signed minutes of every such meeting; and
  4. d) any report, document or other paper considered at any such meeting.
  • 5 The Academy Trust may exclude from items provided under clause 7.4 any content relating to:
  1. a) a named teacher or other person employed, or proposed to be employed, at any Academy;
  2. b) a named pupil or student at, or candidate for admission to, any Academy; and
  3. c) any matter which the Academy Trust reasonably believes should remain confidential.

Notices

  • 6 A notice or communication given to a party in connection with this Agreement or any Supplemental Agreement:
  1. a) must be in writing (excluding email, except where agreed in advance) and in English;
  2. b) must be delivered by hand or sent by pre-paid first-class post or other next working day delivery service;
  3. c) will be deemed to have been received:
  4. if delivered by hand, at the time when a delivery receipt is signed or when the notice is left at the address in paragraph (d), or
  5. if posted, at 9.00am on the second working day after posting; and
  6. d) must be sent to the party for the attention of the contact and at the address listed as follows (or to a different contract or address previously notified to the sending party, the change taking effect five working days after deemed receipt of the notice):

 

Name of party Position of contact Address
Secretary of State Head of Academies Division Department for Education, Sanctuary Buildings, Great Smith Street, London, SW1P 3BT
The Grange Trust Chairman of Directors  Bramley Grange Primary, Howard Road, Bramley, Rotherham, South Yorkshire, S66 2SY

 

Contractual

  • 7 This Academy Trust cannot assign this Agreement.
  • 8 Failure to exercise, or delay in exercising, any right or remedy of the Secretary of State under this Agreement (including the right to terminate this Agreement), or a single or partial exercise of such a right or remedy, is not a waiver of, and does not prevent or restrict any initial or further exercise of, that or any other right or remedy.
  • 9 Termination of this Agreement will not affect the accrued rights, remedies, obligations or liabilities of the parties to this Agreement existing at termination.
  • 10 This Agreement may be executed in any number of counterparts, each of which when executed and delivered will constitute a duplicate original, but all of which will together constitute the same agreement.
  • 11 This Agreement and any dispute or claim arising out of or in connection with it or its subject matter or formation (including non-contractual disputes or claims) will be governed by and construed in accordance with the law of England and Wales, and submitted to the exclusive jurisdiction of the courts of England and Wales.

 

 

 

This Agreement was executed as a Deed on                                              2014

 

Executed on behalf of the Academy Trust by:

 

………………………..

Director

 

and

………………………..

Witness

Name:

Address:

 

The Corporate Seal of

THE SECRETARY OF STATE FOR EDUCATION

affixed to this deed is authenticated by:

………………………..

Duly Authorised

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