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•

The number of required members is not prescribed, and the terms of service is not

time restricted.

•

The UT has a relationship with each education institution but it doesn't have direct

management of them.

•

UTs give education institution greater independence, and the degree of closeness

in terms of governance between the UT and the individual Academy Trusts can be very

flexible.

•

Where there are performance issues with any education institution, we would

expect there to be a formal approved sponsor arrangement where the UT (or other

approved sponsor) is responsible for appointing the majority of the Governing Body of the

weaker Academy.

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Collaborative partnership

Secretary of State

Has an individual Funding

Agreement with each

Academy Trust.

Agrees the governance model

for each individual Academy in

the articles (the Academies do

not share any governance

link).

Academy 1

High performing Secondary

Academy.

Some examples of how the

Academies in the partnership

might collaborate:

With the other three

Academies to ensure a broad

range of post-16 options are

available for students of all

four Academies.

Academy 2

High performing Primary

Academy.

Some examples of how the

Academies in the partnership

might collaborate:

With the other three

Academies to ensure a broad

range of post-16 options are

available for students of all

four Academies.

Academy 3

A Special Academy

Some examples of how the

Academies in the partnership

might collaborate:

With the other three

Academies to ensure a broad

range of post-16 options are

available for students of all

four Academies.

Academy 4

AP Academy

Collaborates with other

Academies on strategies for

tackling improving behaviour

across the partnership

•

This is the most flexible model as it allows education institutions to design and

manifest their preferred terms for working together. Those institutions are governed by

separate Trusts and can chose to recognise their arrangement as they wish e.g. through

a collaboration agreement or other arrangement.

•

Some education institutions may prefer to build on existing relationships, or share

the benefits of working together without being formally accountable. For these looser

arrangements without formal governance, the Secretary of State will need to be satisfied

there is adequate support for weaker institutions.

•

The relationship is not legally binding, and can take whatever form the education

institutions wish. It can be as intensive or light-touch as it is felt would be most effective

in bringing about improvements.

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•

We would always expect any commitments for education institutions wanting to

work together to be upheld, and this model allows them the flexibility to decide when,

where, and how their plans will be implemented.

•

Although not a requirement, with this model, it may be helpful to have a written

agreement to clearly set out their expectations and commitments, including what action

will be taken if one education institution starts to struggle.

•

The collaborative partnership is recorded with the DfE, and there is an expectation

that the education institutions involved are working together and supporting each other to

secure improvement.

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Other elements of the conversion process

Informing staff and TUPE

We strongly recommend that the employer (the local authority for PRUs) starts informal

discussions with staff as soon as the proposal to convert to AP Academy status is

mooted.

In all cases there will be an obligation to provide written information about the transfer to

employee representatives, and in some cases there will also be a duty to consult

representatives and individual staff. Substantial compensation can be awarded if an

employer fails to comply with these obligations, and so it is important that management

committees take specialist advice to ensure that they do comply.

As soon as the management committee has approved the proposal to convert to AP

Academy status, the employer can start the formal TUPE information and consultation

process. We recommend that the TUPE process starts as soon as possible to allow the

maximum amount of time to consult with staff.

You should formally notify the local authority that you have applied so that the TUPE

process can be commenced. Once the Secretary of State has approved your

application, the Secretary of State will write formally to the local authority – however, this

may happen a few weeks after your application is received, so you may wish to make

direct contact the local authority. This will allow a reasonable period of time for meetings

to take place.

The information which the current employer must give in writing to employee

representatives (which will be union representatives where a trade union is recognised in

respect of the relevant category of staff) is as follows:

(a)

The fact that the transfer is to take place, when and why;

(b)

The "legal, economic and social implications" of the transfer for the affected

employees;

(c)

The "measures" which the employer envisages it will take in connection with

the transfer or, if no measures are envisaged, that fact; and

(d)

Any measures which the employer envisages the Academy Trust taking in

connection with the transfer in respect of the transferring employees or, if no measures

are envisaged, that fact.

This information must be provided long enough before the transfer to enable consultation

to take place, even if consultation is only voluntary because there is no legal obligation to

consult in the particular circumstances

There is also an obligation on the Academy Trust to write to the current employer to

inform them of any “measures” which the Trust envisages taking in relation to staff once

the transfer has taken place. This information should be provided as soon as possible

once the Trust has had the opportunity to consider what measures it envisages taking.

"Measures" is a very broad term which encompasses any action, step or arrangement

taken in connection with the transfer which affects staff or their working conditions.

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As stated above, local authorities are encouraged to consult employees and union

representatives throughout the conversion process. However, the legal obligation to

consult under TUPE only arises where the current employer (and not the Academy Trust)

envisages taking "measures" in relation to affected employees in connection with the

transfer.

For most PRUs converting to become AP Academies it is envisaged that the staffing

structure and terms and conditions of employment will remain unchanged, at least

initially. Any changes must be subject to consultation with unions and affected staff and

implemented in accordance with employment law.

It is also necessary to carry out a due diligence exercise for all transferring staff, to verify

information on contracts, terms and conditions, pension deficits etc. Particular care will

be needed in respect of staff who are not based exclusively at the PRU and staff on

fixed-term contracts.

Commercial Transfer Agreement

This document should be discussed and agreed with the Academy Trust and, where

appropriate, the local authority before the Academy opens. It is designed to ensure that

all information on the staff who are transferring to the academy is recorded and

transferred to the Academy Trust, so that the appropriate arrangements for payment of

salaries, pension contributions, etc. can be made. It also includes details of any assets

or contracts that will transfer to the Academy Trust and of those that will not. A model

agreement is available on the DfE Academies website. While it is not necessary for the

Commercial Transfer Agreement to be signed prior to the Funding Agreement, it is

desirable, and we expect it to be in place before conversion takes place. The finalised

commercial transfer document needs to be sent to the DfE project lead.

Criminal Records Bureau checks

The Independent School Standards place a statutory duty on Academies to ensure that

all members of staff have received an enhanced CRB check prior to the confirmation of

their appointment or as soon as practically possible thereafter, and that this check

confirms their suitability to work with children. New disclosures should be sought unless

the member of staff has worked in a relevant educational setting within the previous 3

months. Checks must also be undertaken on the Chair of the Board of

Governors/Directors of the Academy Trust and all Governors/Directors, but if they have

already had a CRB check carried out by the local authority there is no requirement for a

further check to be undertaken. It is important to note, where a check on the Chair of the

Governing Body is required, it must be sought through the Department and

countersigned by the Secretary of State. Details of the procedure for CRB checks to be

countersigned by the Secretary of State are on the Academies website.

Finance-related appointments

PRUs wishing to convert must appoint an Accounting Officer who must be the Principal of

the AP Academy. The Board of Governors/Directors of the Academy Trust must also

appoint a Responsible Officer to monitor and check the academy’s financial

management. The Department expects the Academy will appoint its Responsible Officer

during its first term of operation. Alternatively, the governors may consider the provision

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of an internal audit service. More information about these appointments is in the

‘Academies Financial Handbook’.

From April 2012, the YPLA is replaced by the Education Funding Agency (EFA).

More information about the payment arrangements and the requirements for financial

monitoring and assurance, along with the EFA’s responsibilities, are contained in a letter

which is accessible via the link below:

http://readingroom.ypla.gov.uk/ypla/ypla-

schools_voluntarily_converting_to_academies_information-le-oct10-v1.pdf

Pension registrations

Once the Academy Trust has been established it will be responsible for the pension

arrangements for staff employed by the Academy - even if the local authority is acting as

the payroll provider for the Academy. The occupational pension schemes are the Local

Government Pension Scheme (LGPS) for non-teaching staff and the Teachers' Pension

Scheme (TPS) for teaching staff. Both schemes are statutory schemes.

Teachers’ Pensions Scheme

The TPS is administered on the DfE’s behalf by Capita Teachers’ Pensions (TP). The

DfE notify TP about each Academy’s approval and this will prompt TP to supply the

Academy with information about the TPS. If you have not heard from TP within a week

of receiving confirmation from the Secretary of State regarding approval of your

application to convert to Academy status, please email:

chris.mcmaster@teacherspensions.co.uk

Local Government Pensions Scheme.

Academies’ Funding Agreements require them to offer Local Government Pensions

Scheme (LGPS) membership to all non-teaching staff. When a PRU becomes an

academy, existing staff who are already members of the LGPS will be unaffected and

their membership of the LGPS will continue. After conversion, any new non-teaching

staff will also be eligible to join the LGPS. Further information about the LGPS is

available on the DfE Academies website. The first step will be for the PRU to contact the

local authority to obtain the details of the relevant pension authority which presently

administers the LGPS scheme.

Insurance

Academy trusts are responsible for making arrangements for the insurance of the

Academy. It is imperative that a converting PRU is insured from midnight of the date of

conversion so that there is continuity of cover.

The main types of insurance cover to be arranged are:

•

premises and contents. These should be insured at replacement cost against

damage by subsidence, fire, lightning, explosion, storm, flood, riot, malicious damage,

terrorism and similar risks;

•

business interruption;

•

employer’s liability and public liability insurance;

•

any statutory motor transport insurance.

Further detail on the types and levels of insurance required and guidance on how to

obtain such insurance can be found under the supporting documents section of the DfE

Academies website.

Academy registrations

The Governors will need to complete the following to ensure that the Academy is

registered with the appropriate organisations.

Data Protection Registration

The governors will need to notify the Information Commissioner’s Office (ICO) in writing

that the Academy is opening and will now be responsible for processing personnel and

pupil data (failure to do so is a criminal offence). The information provided will be added

to the Information Commissioner’s register which is available to the public. A fee of £500

is payable to the ICO. Further guidance can be found here:

www.ico.gov.uk/what_we_cover/data_protection/notification.aspx

Exam bodies

Academies can continue to use the same exam centre number as the former PRU. You

will need to contact the National Centre Number Register , which is run by Oxford,

Cambridge & RSA examinations (OCR) on behalf of all the Joint Council for

Qualifications (JCQ) awarding bodies, to let them know about your change of status to an

Academy, and any change of name. This will ensure that all awarding bodies are aware

of the change and it means you won’t have to contact each awarding body you use

separately.

Establishment Number and Unique Reference Number (URN)

PRUs converting to become Academies retain their establishment number but are given

a new URN for use by EFA to calculate funding, and by Ofsted in carrying out

inspections. Once your PRU’s Funding Agreement has been signed EduBase

(www.edubase.gov.uk) will allocate a new URN. This will not remove the inspection

history of the PRU and changes to the Ofsted website are in hand to ensure that the

necessary links are made.

Financial systems

It will be for the PRU to decide whether its existing financial systems are suitable for the

requirements of an Academy. These could include not only the day-to-day processing of

income and expenditure items, but also the production of management accounts, cash

flow reconciliations and balance sheets. If a PRU’s systems do require upgrading, the

Academy can use part of its General Annual Grant for this purpose, where this is

affordable.

Transfer of contracts and licences

Decisions will need to be taken about contracts that the local authority may have entered

into with external suppliers on behalf of PRUs. Does the Academy Trust wish these to be

transferred by the local authority to the Academy Trust? If so, then these should be

mentioned in any agreement reached with the local authority relating to the transfer of

assets/property of the local authority.

PRUs will also need to consider their position in relation to any contracts they may hold

directly with external suppliers, for such services as catering, cleaning, security, and ICT

products and services. If you wish to maintain a contract with an existing supplier, you

will need to discuss with the supplier how it could be transferred to the Academy Trust.

Contractors are unlikely to object to the transfer as it allows them to retain the business

and most contracts will, in any case, contain an assignment clause, permitting its transfer

to a new entity.

Decisions will also need to be made about services currently provided by or bought from

the local authority, which the Academy might wish to obtain elsewhere.

Software licenses will need to be renewed or transferred to the Academy Trust. This

should be discussed with your software supplier(s). Some software suppliers may

require Academies to purchase a new licence for management information systems with

a further charge to transfer data from the PRU’s old database to the Academy’s new

database. PRUs can use the conversion grant towards these costs.

As stated in Section 2 the Chair of Governors will additionally need to send a completed

support grant certificate to the DfE contact just before the conversion takes place. This is

to confirm how much of the grant associated with conversion has been spent and

whether any is being carried forward into the bank account of the Academy Trust.

Further information and guidance

There are a range of websites and documents that you may find useful when considering

conversion, including:

For key documents, the section of the DfE website relating to becoming an Alternative

Provision Academy:

https://www.education.gov.uk/schools/leadership/typesofschools/academies/pru

School Funding Reform:

http://www.education.gov.uk/aboutdfe/executiveagencies/efa/fundingallocations/a002152

25/school-funding-reform

Charity Commission guidance:

http://www.charitycommission.gov.uk/publications/cc3.aspx

Companies House: http://www.companieshouse.gov.uk/

Academies Financial Handbook:

http://www.education.gov.uk/aboutdfe/executiveagencies/efa/efafundingfinance/b002126

47/external-assurance/academies-financial-handbook

Governance guidance: www.education.gov.uk/schools/leadership/governance

Equality Act 2010: http://www.legislation.gov.uk/ukpga/2010/15/contents

Schools benchmarking website (for examples of maintained school finances):

https://sfb.teachernet.gov.uk/Login.aspx

Special Educational Needs Code of Practice:

https://www.education.gov.uk/publications/standard/publicationDetail/Page1/DfES%2005

81%202001#downloadableparts

Special Educational Needs and Disability Green Paper:

http://www.education.gov.uk/childrenandyoungpeople/send

You may re-use this information (excluding logos) free of charge in any format or

medium, under the terms of the Open Government Licence. To view this licence, visit

http://www.nationalarchives.gov.uk/doc/open-government-licence/ or e-mail:

psi@nationalarchives.gsi.gov.uk.

Where we have identified any third party copyright information you will need to obtain

permission from the copyright holders concerned.

Any enquiries regarding this publication should be sent to us at:

Department for Education

Sanctuary Buildings

Great Smith Street

London

SW1P 3BT

Tel: 0370 0002288

This document is also available from our website at: www.education.gov.uk

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