1. How do we voluntarily apply for an Academy Order?
In order to voluntarily convert to Academy status, a school needs to obtain an Academy Order from the Department for Education. Initially, schools may register their interest in conversion online with the Department for Education.
Initially, schools may register their interest online with the Department for Education.
Schools must consult on the question of becoming an academy with “such persons as they think appropriate”. We advise consulting with staff, parents and the local community over any proposals to acquire Academy status. An Equalities Impact Assessment should also be considered.
The consent of the Diocese, trustees and foundation bodies will be required where applicable under the Academies Act.
The Governing Body will then need to resolve to become an Academy and submit an application to the Department for Education to convert to Academy status. This will be considered by the Regional Department for Education Director and Advisory Board and if they are satisfied the school meets the criteria, they will then issue an Academy Order. A project lead at the Department for Education will then be assigned to support with the conversion project.
The Academy Order releases conversion grant funding from the Department for Education to support with the costs of conversion (currently £25,000 per school). This is intended to cover legal fees, undertaking due diligence, transferring software licences and new signage and stationery (if necessary). A claim form for this grant is available from the Department for Education. Any unspent grant is likely to have to be returned. Extra grants may be available, for example, for sponsored schools and PFI school
conversions.
2. What are the key steps in the Academy Conversion process?
If the project requires, a new Academy Trust company may need to be formed and registered at Companies House. The constitutional documentation for the Academy Trust is its Memorandum and Articles of Association. The company will have Members and Directors (Trustees).
Staff will need to be transferred from their current employer (whether that’s the Local Authority or Governing Body) to the Academy Trust upon conversion and a separate formal TUPE consultation will need to take place in order to achieve this.
A Funding Agreement for the Academy needs to be agreed with the Department for Education and then signed by the Academy Trust and the Secretary of State.
Land arrangements are reviewed and appropriate land agreements are put in place on conversion. This might be a 125 year lease from the Local Authority, a freehold transfer from the Governing Body or Church Supplemental Agreement entered into with the Diocese. A Land Questionnaire will also need to be completed for the Department for Education.
A Commercial Transfer Agreement will be negotiated (usually with the Local Authority’s involvement) dealing with the transfer of contracts, assets and staff to the Academy Trust. It will also deal with apportioning historic pre-conversion liabilities and future post conversion liabilities for the school.
3. How long does the process take?
The Department for Education says it expects conversions to take a few months from receipt of an Academy Order. Some conversions will take longer, for example PFI school conversions.
4. What are the key legal documents in converting to Academy status?
- Memorandum and Articles of Association (where a new Academy Trust company is established).
- TUPE Measures Letter to be issued by the Academy Trust.
- Funding Agreement for the new Academy which is a formal contract between the Secretary of State and the Academy Trust.
- DfE Land Questionnaire.
- 125 Year Lease, Freehold Transfer and/or Church Supplemental Agreement.
- Commercial Transfer Agreement with the Local Authority.
5. Does the school need to follow any other procedures?
Yes, the school will need to consider the following:
- A new bank account will need to be set up for the Academy to receive its General Annual Grant (GAG) funding from the conversion date. This is even the case for foundation and voluntary schools despite, in some cases, the fact that the schools may already operate their finances autonomously with payments of the school’s budget share being paid directly into existing Governing Body accounts.
- Transfer existing contracts over to the Academy Trust. Careful consideration needs to be given to any software licences and any PFI or BSF contracts, as well as any loan agreements, building contracts and warranties and any grant funding documentation.
- Procure insurance for the Academy as appropriate. The DfE offers an alternative to commercial insurance (which is called the Risk Protection Arrangement) which can be confirmed via your Department for Education project lead.
- The Academy Trust will be responsible for HR and payroll. You will need to consider whether to continue to buy this service from the Local Authority (if that’s already the case) or consider other providers (especially where to be procured centrally by the Academy Trust).
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FURTHER INFORMATION
We have helped over 1,500 schools throughout the country convert to academy
status as well as advising on many MAT mergers, SAT to MAT conversions and
academy transfers, acting in connection with all types of schools. We are immersed
in the Education sector and have a wealth of experience to draw on. Our aim is to
ensure you feel supported at all times and you are confident in the decisions you will
be making.
ACADEMY CONVERSION TEAM CONTACT DETAILS
Phone number: 0345 070 4450
Email: academyhotline@wslaw.co.uk
www.wslaw.co.uk/academyconversion
