Academy Trusts – a reminder of what you need to know about the ESFA’s new arrangements for related party transactions

On 1 April 2019, the Education and Skills Funding Agency introduced new requirements for reporting related party transactions.

What Academy Trusts need to know:

  • all related party transactions are to be reported to the ESFA using a new online form
  • reports must be logged prior to transactions taking place
  • trusts must seek ESFA approval before agreeing any related party transactions that exceed £20,000 in a financial year to 31 August
  • the £20,000 threshold can be met by one or multiple contracts
  • approval requests must be submitted via the new online form

The ESFA have produced a short video to help Academy Trusts understand the new policy, it includes:

  • the new requirements
  • how to complete the online form
  • the information required
  • ESFA response times

If you have any questions on this, or any other Academy related matters, please contact Lucy Jenkins by calling 0113 297 6821 or emailing l.jenkins@sagars.co.uk.