Quickpoints
Making the Move into the Maintained Sector….a guide for independent schools considering converting to academies
6th October 2009
The Government’s academies programme has been going for the last 5 years or so, and has not been without controversy, with barely a week going by without some aspect of the programme hitting the headlines. The latest story concerns independent schools which have decided to convert to academies. Three are already open, with many more expected to follow. Interest may well be greater from those independent schools concerned about how the upcoming public benefit test could affect them, since conversion to an academy would automatically ensure that they are operating for the benefit of the public.
What does adopting academy status mean? We have summarised below the key considerations to be borne in mind in converting from an independent school into an academy.
What is an Academy?
Academies are independent schools established as companies limited by guarantee and are registered charities, a structure that will be familiar to most independent schools. They are non-fee charging and non-selective in their admissions and receive funding from the Department for Children, Schools and
Families pursuant to a funding agreement. They are freed from direct local authority control, although the local authority will normally have a representative on the governing body.
Sponsorship
The first step for any academy proposal is to identify a sponsor or sponsors who will provide capital funding for the new school. Many academies have multiple sponsors which gives independent schools that chance to involve other parties such as existing donors or local businesses. The government has recently indicated that it wants to encourage successful schools, colleges and universities to sponsor academies, to the extent that the normal requirement to obtain £2m of outside funding for the academy may be relaxed. This opens the way for independent schools to use existing assets (such as land and buildings) as sponsorship rather than having to obtain additional outside funding. If outside sponsorship is obtained, this will not be used towards the new buildings or refurbishments as in past academy projects, but will be held in a separate endowment fund.
The next steps
Once the sponsorship arrangements have been agreed with the DCSF, and the proposals for the new academy approved (contained within a document known as the Expression of Interest) the feasibility stage is entered and work then begins on converting the existing school into an academy. There are a range of issues to consider, including:
• Governance: The DCSF has prepared a standard constitution
(Memorandum and Articles of Association) which it expects all academies to adopt: existing schools could either amend their existing constitutions (that is, keep the same company and charity numbers) or adopt an entirely new one. The DCSF expects to see a mixture of governors appointed by the sponsors (in the case of a conversion, the sponsor would typically be the existing school) and representatives of the parents, local authority and, optionally, the staff. The headteacher is also a governor. There is also the ability to co-opt governors on to the board if required. As with most independent schools there would also be a number of subcommittees.
• School Land: One of the main attractions for independent schools to convert is the prospect of a large injection of government cash for the purpose of rebuilding or refurbishing existing buildings and for updating ICT.
The works will be undertaken by the local authority on behalf of the sponsor (through the Building Schools for the Future programme). This requires the freehold in the school site to be transferred to the local authority for the duration of the building works, this may pose some challenges if the land is permanently endowed and is likely to require Charity Commission approval.
Once these have been completed, the authority will grant the new academy a long lease of the site, typically 125 years, at a peppercorn rent.
Interested, but not quite ready to take the plunge?
Schools who wish to maintain their existing independent status could consider becoming a sponsor of a local academy rather than converting. This may involve sharing of facilities, staff or knowledge and could involve the independent school having one or more representatives on the governing body. Such involvement would also count towards an independent school’s delivery of public benefit, being a very effective way of ensuring that the work of the school is shared with a broader audience.
Martha Burnige – Solicitor, Charity and Education
The Charity and Education team at Stone King currently act for seven academy trusts and many independent schools.
For more information on academies please contact Stephen Ravenscroft on 020 7841 5732.
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