Academy Trust Handbook 2023

The Education and Skills Funding Agency (ESFA) have published the Academy Trust Handbook 2023 which comes into effect on 1 September 2023.

The Academy Trust Handbook sets out core governance and financial management obligations, as well as action that may be taken when obligations are not met. It is updated annually by the Department for Education (DfE) and all trusts must comply with the handbook as a condition of their funding agreement.

This years’ Academy Trust Handbook 2023, available as a PDF to download  is a materially shorter and sharper document. It contains several key changes, including:

• Related party transactions: an increase in the threshold beyond which ESFA approval is required for related party transactions from £20k to £40k
• Annual reporting: removing the requirement for explanations in annual accounts when holding fewer than 6 board meetings per year
• Budget setting: providing an additional month to submit annual budget forecast returns
• Budget monitoring: providing more discretion in the distribution of management accounts
• Sustainability: confirming that salary sacrifice schemes can be set up for electric vehicles, in most cases without our approval.

The changes to the 2023 edition are summarised on page 7 of the PDF.

ESFA have also published a Schedule of Musts 2023,  the requirements in the Academy Trust Handbook brought together into one list. The list  abbreviates the requirements and so cannot be used as a substitute for the full handbook. References to the relevant sections are included, which must be read in full.

Those governing and supporting governance also need to refer to the Governance Handbook.