Short course qualification
Syllabus
Certificate in Academy Governance
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Contents
Key features 3
Module format 4
Qualification structure 5
Modules 6
Legislative and Regulatory Framework 7
Governance 12
Risk, Compliance and Policies 20
Financial Management 29
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Key features The ICSA Certificate in Academy Governance:
is aimed at individuals who are working, or looking for a role, with governance responsibilities in an academy school.
is a Level 4 qualification – set at first-year undergraduate level
contains four compulsory modules
is an open-entry programme with no prior qualifications required
is externally assessed – ICSA will set and mark the assessment
is assessed twice a year, in June and November
is graded at Pass (P), Merit (M) or Distinction (D) – students whose level of achievement is below
Pass will be classified as Fail A, Fail B, Fail C or Fail D, depending on the number of marks achieved.
Prior knowledge, skills and understanding Students do not need to achieve any other qualifications before registering for the qualification. No prior knowledge, skills or understanding are necessary. There are no formal entry requirements and the qualifications are suitable for non-degree holders, although it is recommended that the student is working in a relevant occupation.
Assessment The modules within the qualification are externally assessed via one closed-book examination that will cover content from each module. The examination is set and marked by ICSA and the pass mark is 50%. See the Qualification structure section for further information. The examination provides independently assessed evidence of learning. It also enables students to demonstrate the range of transferable skills they have developed throughout their programme of study by requiring them to apply their knowledge in unfamiliar contexts.
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Module format
Module title The title describes the content of the module. Level All the modules in this syllabus document are set at Level 4, which is equivalent to first-year undergraduate level in the UK. Module type
All of the modules in this syllabus document are compulsory.
Total hours study time This is the total number of hours that students are expected to take to study the module. This time incorporates module webinars, self-study with the study text, wider reading, and reflection on work experiences, practice assessment tasks and exam preparation. Introduction The introduction provides a snapshot of the module and summarises the learning outcomes. Learning outcomes The learning outcomes of a module set out what a student is expected to know, understand or be able to do as the result of a process of learning. Module content This section identifies the breadth of knowledge, skills and understanding needed to achieve each of the learning outcomes through a programme of study. Topic Each learning outcome is broken down further into a series of themes that should be covered in the programme of study for the module. Exemplification The content of this section provides the range of subject material to be studied under each topic heading.
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Qualification structure This qualification comprises four modules and is assessed via one three-hour (plus 15 minutes’ reading time) closed-book examination which is set and marked by ICSA. Students must pass this paper to be awarded the qualification. The pass mark is 50%.
Module
number
Module title Total hours
study time
% weighting
1 Legislative and Regulatory Framework 30 15%
2 Governance 70 35%
3 Risk, Compliance and Policies 70 35%
4 Financial Management 30 15%
Total 200 hours 100%
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Modules
MODULE 1 – LEGISLATIVE AND REGULATORY FRAMEWORK
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Module 1
Legislative and Regulatory Framework Level: 4 Total hours study time: 30
Introduction This module provides a broad understanding of the legal framework within which the governance of academies is set. The module explores the nature of governance and the legislative and regulatory framework which shapes it. It will examine the impact of regulators and the constitution of academies as charitable companies required to comply with both charity and company law. Learning outcomes In this module you will: 1 Understand how the principles of good governance are applied by academies in the UK. 2 Know about the legal and regulatory framework for academies and the role of regulators in academy
governance. 3 Know about the roles and responsibilities of the Department for Education (DfE) and the Education
and Skills Funding Agency (ESFA). 4 Understand how compliance with charity and company law impacts on academies.
MODULE 1 – LEGISLATIVE AND REGULATORY FRAMEWORK
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Module content
What needs to be learnt
Section A: Introduction to governance and the academies landscape
Topic Exemplification
Defining good governance Cadbury Report 1992 – Financial Aspects of Corporate
Governance
UK Corporate Governance Code 2018:
Board leadership and company purpose
Division of responsibilities
Composition, succession and evaluation
Audit, risk and internal control
Remuneration
Department for Education (DfE) Governance Handbook:
government’s vision and priorities for effective
governance
core functions of the board
key features necessary for effective governance
DfE Guidance on Schools Causing Concern:
powers of Regional Schools Commissioners (RSCs) to
intervene
reasons for strategic failure
Strategic versus operational leadership:
responsibilities of trustees and chief executive
officer/principal
importance of separating strategic oversight and
operational leadership
Background to academisation:
impact of key acts:
− Education Reform Act 1988 and the introduction of
City Technology Colleges (CTCs)
− Learning and Skills Act 2000 and the conversion to
‘city academies’
− Education Act 2002
− Academies Act 2010
− Education and Adoption Act 2016
proposal to introduce compulsory academisation
Legal structure of academies
Definition of a trust
Charity status, including:
Charities Act 2011
the role of the Charity Commission
the role of the Education and Skills Funding Agency
(ESFA)
Parent Teacher Associations (PTAs)
MODULE 1 – LEGISLATIVE AND REGULATORY FRAMEWORK
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What needs to be learnt
Section A: Introduction to governance and the academies landscape
Topic Exemplification
The shift from the stakeholder model:
how boards can make the right trustee appointments
separation of member and trustee roles
Establishing and maintaining good
governance Independent trustees:
benefits of having independent trustees on the board
declarations of interests and conflicts of loyalty
Academy freedoms:
local authority control
pay and conditions for staff
national curriculum
General Annual Grant (GAG)
The role of governance in school improvement:
how the board is responsible for educational standards
DfE Competency Framework for Governance
Lord Agnew letter to auditors – increasing awareness of
best practice in financial management and governance
Principles of good governance:
Seven Principles of Public Life – the Nolan principles
Charity Governance Code
Collaboration:
school-to-school support through clusters or partnerships
the role of RSCs
risks of entering into partnerships
the rise of the multi-academy trust (MAT):
− benefits of the MAT structure
MODULE 1 – LEGISLATIVE AND REGULATORY FRAMEWORK
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What needs to be learnt
Section B: Legislation and regulation
Topic Exemplification
The legislative framework
Academies Act 2010:
key features of the act
Companies Act 2006:
benefits to academies
provisions in relation to directors and
members/shareholders
Charity law:
trusts as charitable companies
Financial management DfE Academies Financial Handbook:
letters to accounting officers
Academies Accounts Direction:
requirements for trusts in relation to preparing and
auditing financial statements
Regulatory and competency
frameworks Department for Education (DfE):
responsibilities of the DfE
Education and Skills Funding Agency (ESFA):
responsibilities of ESFA
role of ESFA accounting officer
DfE Governance Handbook
Competency frameworks:
DfE Competency Framework for Governance:
− knowledge, skills and behaviours required for
effective governance
DfE Clerking Competency Framework:
− knowledge, skills and behaviours required for
professional clerking
Schools Commissioners Group:
key responsibilities of RSCs
Headteacher Board
Companies House:
responsibilities of Companies House
Registrar of Companies
filing requirements
inspection of statutory registers and access to
information
Office for Standards in Education, Children’s Services and
Skills (Ofsted):
provisions of the Education Act 2005 – section 5
full inspections – ‘section 5 inspections’
MODULE 1 – LEGISLATIVE AND REGULATORY FRAMEWORK
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What needs to be learnt
Section B: Legislation and regulation
Topic Exemplification
short inspections – ‘section 8 inspections’
inspection criteria according to the Common Inspection
Handbook 2017
Specialist guidance Schools Causing Concern:
the role of local authorities and RSCs in supporting
improvements in educational performance
evidence that governors may be failing
Local authority:
relationship with trusts
responsibilities including school place planning,
transportation, vulnerable learners and safeguarding
National Leaders of Education:
criteria for appointment
national support schools
National Leaders of Governance (NLGs):
criteria for becoming an NLG
areas of support
MODULE 2 – GOVERNANCE
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Module 2
Governance Level: 4 Total hours study time: 70
Introduction This module explains the different types of governance structures that are available for academies. It outlines the nature of an academy’s constitution as set out in its articles, how the roles and responsibilities of the officers are delineated and how responsibility is delegated through an academy. The roles of clerk and company secretary are also explored in detail. Learning outcomes In this module you will: 1 Understand how the legal structures of academies impact on governance. 2 Understand the roles and responsibilities of the board of trustees, board committees and members. 3 Understand the roles and responsibilities of the clerk and the company secretary.
MODULE 2 – GOVERNANCE
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Module content
What needs to be learnt
Section A: Governance structures
Topic Exemplification
Different types of governance
structures Single academy trusts (SATs):
key features
how the DfE judges applications to convert to a SAT
structure
Multi-academy trusts (MATs):
key features
reasons schools convert to a MAT structure
the MAT as a single legal entity
the role of local governing bodies
Church schools:
memoranda of understanding between the DfE and the
Church of England and the Catholic Church
criteria for church schools joining MATs
Other academy arrangements:
umbrella trusts
free schools
studio schools
University Technical Colleges (UTCs)
Sponsors:
situations in which sponsorship is necessary
organisations that can apply to become an academy
sponsor
responsibilities of the lead sponsor
Memorandum and articles of
association Memorandum
Articles of association – standard clauses in model articles,
including:
objects
trustees
committees
patrons and honorary officers
notices
Changes to the articles
Becoming an academy Conversion, including DfE process for conversion
Joining a MAT:
processes and issues involved in joining a MAT
School Governance (Federations) (England) Regulations
2012
MODULE 2 – GOVERNANCE
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What needs to be learnt
Section A: Governance structures
Topic Exemplification
approval of ‘prescribed governors’
Forced academisation:
failing and coasting schools
issuing of performance standards and safety warning
notices – DfE Guidance on Schools Causing Concern
Mergers and acquisitions:
the role of RSCs
the Diocesan Board of Education (DBE) – church
academies
Land issues:
land transfer arrangements and documentation
ownership and leasing of land:
MODULE 2 – GOVERNANCE
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What needs to be learnt
Section B: Roles and responsibilities
Topic Exemplification
Members Legal standing and guarantee
Need for separation of powers between members and
trustees
Appointment of members:
minimum and recommended numbers of members
Responsibilities and rights:
requirements of DfE Academies Financial Handbook
rights of members according to company law
Restrictions and remedies, including:
circumstances in which members can benefit from trusts
protection against ‘unfair prejudice’
causes of derivative actions
Ceasing to be a member
Trustees Tripartite role:
trustees
directors
governors
Appointment of trustees:
terms of office
different types of trustees
different routes to appointment and election
Chief executive officer (CEO)/principal and executive
officers
Selection of trustees:
skills, experience and diversity
Eligibility
Directors’ duties
Liability:
officers’ and directors’ insurance
derivative claims against trustees
Termination of office
Disqualification
Shadow and de facto directors:
factors to determine whether an individual is a shadow or
de facto director
outcome and impact of Holland v HMRC (2010)
Time off work
MODULE 2 – GOVERNANCE
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What needs to be learnt
Section B: Roles and responsibilities
Topic Exemplification
Role of the board Core functions and responsibilities
The chair of the board:
term of office
vice-chair
succession planning
Local authority Local authority associated persons (LAAPs), including:
local authorities (LAs)
number of votes exercisable by LAAPs
Local governors:
purpose of local governing bodies (LGBs) and the role of
local governors within them
DfE preference for separation of powers between the
different layers in trust governance structures
how LGBs are established
MODULE 2 – GOVERNANCE
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What needs to be learnt
Section C: The clerk and company secretary
Topic Exemplification
The governance professional The importance of appointing a governance professional
The two-tier governance support structure
Benefits of the performance management system
DfE Clerking Competency Framework – key competencies:
understanding governance
administration
advice and guidance
people and relationships
Clerk:
‘professional-quality clerking’
role and responsibilities
the importance of clear functions and lines of reporting
Company secretary:
requirement for a company secretary
role and responsibilities
relationship between company secretary and clerk
Statutory registers Requirements of the Companies Act 2006
Register of members
Register of directors/trustees
Register of secretaries
Register of directors’/trustees’ residential addresses
Register of people with significant control
Register of interests
Register of gifts, hospitality and entertainments
Inspection of registers
Companies House Key functions
Filing requirements and deadlines
Public record:
information available for public inspection
Filing changes by hard copy:
reasons for filings being rejected
WebFiling:
uses and benefits of the WebFiling service
Confirmation statement:
purpose of the confirmation statement
standard industrial classification (SIC) codes
Notification of Single Alternative Inspection Location (SAIL)
MODULE 2 – GOVERNANCE
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What needs to be learnt
Section D: Meetings and decision making
Topic Exemplification
General meetings and decision
making Regulation of meetings by the Companies Act 2006
Annual general meetings (AGMs)
Responsibility for calling general meetings
Notice period
Quorum
Role of the chair
Ordinary and special resolutions
Voting rights
Appointing a proxy
Trustees’ meetings Calling meetings:
regularity of meetings
responsibility for calling meetings
notice period
agenda
Managing meetings:
right to attend meetings
role of the chair
provision of documents and reports
Quorum, including impact of falling below quorum
Voting:
different methods of voting
voting of LAAPs
Conflicts of interest and loyalty:
pecuniary interests
Charity Commission guidance
Telephone/video attendance
Adjournments
Written resolutions, including how resolutions are passed
Minute taking Requirements of Companies Act 2006
Accepted protocols for minute taking
Circulation, retention and inspection of minutes
Content of the minutes
Confidential items
Committee structures The purpose of committees
MAT local governing bodies (LGBs) and advisory councils:
delegation of responsibility to LGBs
the role of parents as trustees and local governors
Audit committee
MODULE 2 – GOVERNANCE
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What needs to be learnt
Section D: Meetings and decision making
Topic Exemplification
Delegation of authority Delegation of authority by MATs to:
board committees
individual trustees
members of the executive
individual academies
Schemes of delegation:
the importance of clear delegation of powers
matters reserved for the board
MODULE 3 – RISK, COMPLIANCE AND POLICIES
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Module 3
Risk, Compliance and Policies Level: 4 Total hours study time: 70
Introduction This module provides a broad understanding of the legal and regulatory requirements for academies as well as best practice around risk management and reviews that can be put in place. The module examines the process of risk management by looking at how different types of risk are identified, managed and tolerated and the factors that influence the treatment of risk. It considers statutory and regulatory compliance and how information, especially electronic data, should be managed. It also explains the types of reviews that can be used to ensure robust governance practices.
Learning outcomes In this module you will:
1 Understand the importance of assessing and managing risk in academies. 2 Understand how to comply with legal and regulatory requirements for academies. 3 Know how legal requirements for information management are met. 4 Know the procedures around performance management and internal and external reviews.
MODULE 3 – RISK, COMPLIANCE AND POLICIES
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Module content
What needs to be learnt
Section A: Risk management
Topic Exemplification
Understanding risk management Definition of risk management and outline of risk
management process
Types of risk:
the role of the International Organization for
Standardization (ISO)
categories of risk, e.g. reputational risk
financial oversight:
− requirements of DfE Academies Financial Handbook
Risk appetite and risk tolerance:
factors which impact on levels of risk appetite and risk
tolerance
Assessing and managing risk in
academies Risk management, including:
risk strategy framework:
− responsibility for risk strategy
risk identification:
− factors which may heighten a trust’s risk profile
risk estimation:
− likelihood and impact of risks
risk prioritisation
risk mitigation:
− share
− avoid
− reduce
− accept
risk monitoring
risk reporting:
− reporting methods
− reporting financial risk
business continuity and disaster recovery plans
Risk register
Insurance and risk protection arrangements:
statutory requirements
types of insurance that MATs should consider, e.g.
pupils’ personal accident insurance
risk protection arrangement (RPA) for academies
MODULE 3 – RISK, COMPLIANCE AND POLICIES
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What needs to be learnt
Section A: Risk management
Topic Exemplification
Specific risks Health and safety:
Health and Safety at Work Act 1974
regulations and specialist guidance
Health and Safety Executive (HSE)
Off-site activities
Safeguarding:
statutory guidance
policies and procedures
Safer recruitment, including:
Disclosure and Barring Service (DBS) checks
Complaints:
formal written complaints procedure
Reputational risk:
factors which can impact on reputation
MODULE 3 – RISK, COMPLIANCE AND POLICIES
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What needs to be learnt
Section B: Compliance and policies
Topic Exemplification
Policies Policy drafting:
responsibility for policy development
different approaches taken by MATs
format of policies
Access to policies
Review:
frequency of review
processes for managing and embedding policies
Statutory policies DfE’s Statutory Policies for Schools 2014 and DfE guidance
for individual policies
Admissions arrangements, including:
DfE Schools Admissions Code
selection criteria
Allegations of abuse against staff
Behaviour policy, including:
anti-bullying strategy
Charging and remissions, including:
circumstances in which charges may be made
Child protection policy and procedures
Complaints procedure
Data protection, including:
Data Protection Act 1998
data protection principles
Early years foundation stage (EYFS)
Freedom of information
Equality information and objectives (public sector equality
duty) statement:
aims of the general equality duty
Equality Act 2010, including protected characteristics
Health and safety
Home–school agreement
Recruitment and selection
Sex and relationships education
Special educational needs (SEN)
Staff discipline, conduct and grievance procedures
Supporting pupils with medical conditions
MODULE 3 – RISK, COMPLIANCE AND POLICIES
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What needs to be learnt
Section B: Compliance and policies
Topic Exemplification
Other statutory documents Accessibility plan
Central record of recruitment and vetting checks
Minutes of, and papers considered at, meetings of the board
and its committees
Premises management documents
Register of pupils’ admission to school
Register of pupils’ attendance
Safeguarding and Disclosure and
Barring Service (DBS) checks
Safeguarding and child protection training for staff
Safeguarding teaching and learning opportunities for pupils
Counter-Terrorism and Security Act 2015 – ‘Prevent’ duty:
‘Prevent’ awareness training and guidance
Requirements for enhanced DBS certificates
Safeguarding Vulnerable Groups Act 2006
Conflicts of interest and register Direct and indirect interests
Requirements of the Companies Act 2006
Requirements of DfE Academies Financial Handbook
The importance of a conflicts of interest policy
Declarations of interests and loyalties:
register of interests
Related party transactions
Whistleblowing Definition of whistleblowing
Procedures in place for staff
How staff can report their concerns
Protection by the Public Interest Disclosure Act 1998:
examples of protected disclosures
MODULE 3 – RISK, COMPLIANCE AND POLICIES
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What needs to be learnt
Section C: Information management
Topic Exemplification
Data protection and information
sharing
Freedom of Information Act 2000:
Code of Practice
publication of information
requests for information
Data protection:
Data Protection Act 1998
Personal data
Subject access request (SAR):
rights of parents and children
General Data Protection Regulation (GDPR):
application of GDPR to personal data
special categories of personal data
lawful bases for processing personal data
rights granted to individuals
Article 39 – role and responsibilities of the data
protection officer
data breaches
non-compliance with GDPR
Website Requirements for availability of information and
documentation on school websites, including:
contact details
admissions
annual reports and accounts
company information
curriculum
equality objectives
examination and assessment results
exclusion arrangements
gender pay gap reporting
governance
Ofsted reports
performance tables
policies
pupil premium funding
register of interests
special educational needs and disabilities (SEND)
values and ethos
MODULE 3 – RISK, COMPLIANCE AND POLICIES
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What needs to be learnt
Section C: Information management
Topic Exemplification
Social media Social media use in schools
Risks arising from use of social media
Importance of social media policies and procedures
Code of conduct and social media guidelines for trustees,
governors and volunteers
Get Information About Schools
(GIAS) Purpose of GIAS as an online government register
Requirement for information on trust leadership and
management:
members
trustees
chair of trustees
members of LGB
chair of LGB
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What needs to be learnt
Section D: Performance management and internal reviews
Topic Exemplification
Setting strategic objectives and key
indicators
Features of strategic leadership, including:
vision for the future
values and ethos
strategic planning
The importance of key performance indicators (KPIs):
quantitative
practical
directional
actionable
Requirements of Companies Act 2006 and DfE Academies
Financial Handbook
Examples of KPIs
Self-evaluation:
Ofsted requirements
purpose of self-evaluation
responsibility for undertaking self-evaluation
SWOT analysis – strengths, weaknesses, opportunities, and
threats
PESTLE analysis – political, economic, socio-cultural,
technological, legal and environmental
Performance management Performance management tools
Benefits of effective performance management processes
Purpose of regular staff reviews
DfE School Teachers’ Pay and Conditions
Responsibility for performance management
Review of clerk and company secretary performance
Objective setting:
importance of clear, written objectives
ensuring objectives are SMART – specific, measurable,
achievable, relevant and time bound
CEO/principal performance management:
Effectively managing headteacher performance 2014 –
National College for Teaching and Leadership
appraisal meeting – role of external adviser in supporting
trustees
responsibility for managing performance of
CEO/principal
importance of clear decision-making on pay
MODULE 3 – RISK, COMPLIANCE AND POLICIES
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What needs to be learnt
Section D: Performance management and internal reviews
Topic Exemplification
360° reviews of the chair of the board:
purpose of the 360° review
skills and behaviours required by chair to monitor board
effectiveness
Skills audits:
requirements of DfE Academies Financial Handbook
the importance of identifying skills gaps on the board
Review of governance Behaviours required by board members to manage self-
review and development
Committee self-evaluation
Contents of the governance statement
External review of governance (ERG):
aims of the ERG
responsibility for the ERG and skills required to
undertake it
steps to be followed by the reviewer
MODULE 4 – FINANCIAL MANAGEMENT
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Module 4
Financial Management Level: 4 Total hours study time: 30
Introduction This module provides a broad understanding of the key principles affecting financial management in an academy and how they affect the trustees and office holders as they seek to discharge their legal duties and responsibilities in practice. The module explores the main sources of income for academies as well as the legal and governance issues that relate to the proper application and management of funds. It also examines the importance of financial compliance with legal requirements as well as the need for robust financial controls.
Learning outcomes In this module you will: 1 Understand the main sources of income for academies and restrictions imposed on their
management. 2 Understand regulatory and legal requirements for financial planning, reporting and control. 3 Understand the importance of financial planning and how it relates to strategic planning.
MODULE 4 – FINANCIAL MANAGEMENT
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Module content
What needs to be learnt
Section A: Funding
Topic Exemplification
Funding agreement The importance of the funding agreement:
the model funding agreement:
− deviation from the model funding agreement
Sources of income – revenue
General annual grant (GAG) income:
national funding formula – per pupil costs, additional
needs, school-led funding, geographic costs
minimum funding guarantee
GAG payments and how funding should be used
GAG pooling:
how a MAT can meet the needs of its academies
through a central fund
appeals mechanism to resolve funding grievances
Education Services Grant (ESG)
Special and alternative provision academies
Sources of income – capital
Formula funding:
School Condition Allocation eligibility and conditions
Condition Improvement Fund (CIF):
purpose of the scheme
how to prepare a bid for CIF
Healthy Pupils Capital Fund (HPCF)
Private finance initiative (PFI) academies
Strategic School Improvement Fund – supporting
improvement in:
teaching methods and approaches
financial health and efficiency
16 to 19 funding:
criteria for funding
additional funding for disadvantaged young people
Pupil premium:
aims of funding
different rates available
requirements to publish pupil premium strategy
Physical education and sport premium:
purpose of funding
benefits of funding
Universal infant free school meals (UIFSM)
Year 7 catch-up funding:
types of extra support provided to pupils by funding
MODULE 4 – FINANCIAL MANAGEMENT
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What needs to be learnt
Section A: Funding
Topic Exemplification
Application of funds, tax and
alternative ways of raising money Funding central services in a MAT:
how MATs use the top-slice model
how funds can be applied according to need
Gift Aid:
provisions of model funding agreement
how gifts and financial donations can be maximised
how to claim under Gift Aid Small Donations Scheme
requirements for record keeping
Tax relief
Raising money and trading subsidiaries:
definition of primary purpose trading
benefits of trading through a subsidiary company
trustees’ annual report and financial statements:
− compliance with provisions of Charities (Protection
and Social Investment) Act 2016
Loans and leasing agreements:
provisions of model funding agreement
use of credit cards as provided by Academies Financial
Handbook
acceptable forms of borrowing:
− Condition Improvement Fund (CIF)
− Salix Energy Efficiency Fund
MODULE 4 – FINANCIAL MANAGEMENT
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What needs to be learnt
Section B: Financial management
Topic Exemplification
Managing and reporting funds Trusts as companies and central government public sector
bodies
Accounting reference date
Accounting officer:
role and responsibilities:
− personal responsibility to Parliament and ESFA
accounting officer
− completion of statement on regularity, propriety and
compliance
− oversight of financial transactions
− compliance with DfE Academies Financial
Handbook and model funding agreement
Chief financial officer (CFO):
role and responsibilities
skills and experience necessary for the role
Financial planning Requirements of DfE Academies Financial Handbook
Budgeting and forecasting:
budget setting
budget monitoring
submission of budget forecast information to ESFA
Executive pay:
provisions of DfE Academies Financial Handbook
the importance of a transparent, proportionate and
justifiable approach
Investment policy:
role of the board
purpose of the policy
Value added tax (VAT):
charging and reclaiming VAT
different rates of VAT
registration with HM Revenue and Customs (HMRC)
VAT returns
Financial monitoring
Role of the board and finance committee
The importance of forecasting cash flow:
cash flow problems and issuing of financial notice to
improve
Financial management and governance self-assessment
Internal financial controls:
requirements of DfE Academies Financial Handbook
features of a control framework
MODULE 4 – FINANCIAL MANAGEMENT
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What needs to be learnt
Section B: Financial management
Topic Exemplification
Audit committee:
provisions of DfE Academies Financial Handbook
responsibilities of committee
requirements of trust staff
Regularity, propriety and compliance
Procurement Provisions for spending
How trusts can make savings through procurement
The importance of observing Official Journal of the
European Union procurement thresholds
Irregular expenditure:
common themes as identified by ESFA’s Academies
Accounts Direction
Related party transactions
How trustees can avoid conflicts of interest
Requirements of charity and company law
Provisions of DfE Academies Financial Handbook:
increased restrictions
relationships which may attract public scrutiny
Managing potential conflicts of interest
Annual report and accounts Funding agreement requirement to produce annual
accounts
Importance of preparing financial statements in line with:
the Charities’ Statement of Recommended Practice
(SORP)
guidance in the Academies Financial Handbook
Reports that accompany the annual financial statements in
the annual report:
trustees’ report
governance statement
statement on regularity, propriety and compliance
statement of trustees’ responsibilities
independent auditor’s report on the financial statements
independent reporting accountant’s assurance report on
regularity
ESFA Academies Accounts Direction additional
requirements for inclusion in the financial statements:
− guidance and technical requirements
− example annual reports and accounts
additional disclosures for Multi-academy trusts (MATs)
MODULE 4 – FINANCIAL MANAGEMENT
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What needs to be learnt
Section B: Financial management
Topic Exemplification
Audit, reserves and assets Audit:
requirements of Companies Act 2006
requirements of DfE Academies Financial Handbook
role and responsibilities of auditor
removal of auditor
Reserves:
surplus GAG funds
reserves policy
Asset register, including purpose:
definition of fixed assets
role of the accounting officer
ESFA approval for specific transactions
© ICSA, 2018 Page 35 of 36
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