Date 4 January 2012
More and more schools are now choosing to move away from Local Government control and are converting to academy status. The conversion process can prove complex and below we have listed some ‘Top Tips’ to assist you.
Advisors
Select your advisors carefully. Ask your nominated solicitor if they have contacts with local accountants, bankers and other professionals who you may need to use in the conversion process.
Communicate with staff
Staff will, naturally, be concerned about their own personal position in relation to the conversion. It is important to begin consulting with them as soon as possible, to take on board their comments and to keep them informed of any developments. It is also important to liaise with union representatives. During key stages of the process, it is good practice to issue written updates and also to respond to any individual staff queries in writing. If several staff members are raising the same query, consider issuing additional bulletins or updates to keep everyone fully informed.
Assess the trading position
Schools sometimes generate income from trading and/or from hiring out their premises. It is important to note that an academy is restricted as to which activities can be carried out. It may be necessary for a subsidiary company to carry out some of these instead, and you will need to arrange for such a company to be set up. Consider the position early on and keep all of your advisors informed.
Develop a Project Plan
Governors and headteachers need to have a very clear idea as to why the School is considering converting, have gathered as much information as possible (a useful source being from nearby schools which have already gone through the process) and have weighed up all the pros and cons. This will be crucial when submitting the DfE application and when discussing the proposed project with the governors and teachers. It is also sensible to have a project plan and to include timescales and deadline dates to ensure everyone is working towards the same plan.
Equality Duty (Public Sector)
Governing bodies of schools have a “Public Sector Equality Duty”. During the consultation period, and when a governing body takes the final decision to convert to academy status, the governing body must have regard to the Duty and take steps to demonstrate it. You should consult your legal advisor about this.
Make Lists!
Get organised with title deeds, contracts and HR records
It is important to locate the School’s title deeds at an early stage in order to save time at later stages of the conversion process. Ensure the deeds are checked for any issues with the title.
The location of the title deeds will depend on who owns the land, and the category of the school. If the governing body owns the land, the deeds are likely to be held on the school’s premises or perhaps with a solicitor. Alternatively, if the Local Authority or another third party owns the freehold title, they are likely to be holding the deeds.
Again, to save time later on it is important to ensure copies of all contracts and funding agreements are to hand (for example, this could include lottery funding agreements, etc). These may need to be legally transferred to the Academy. It is also important to have a full staff list to hand and to check that the personnel records have been totally updated.
Insurance
Academies are obliged to procure their own insurance, including for land and buildings. This has to be in place from midnight on the day of conversion. The money will usually be refunded by the DfE but Academies will need to demonstrate that the arrangement is good value for money. Options to consider using include the local authority or a framework provider – or approaching an insurer direct, or through a broker.
Evaluate issues bespoke to the school
It is a sensible idea to identify issues that are bespoke to the school and consider how they may affect the conversion to academy status. Also, consider whether you want any of the existing service providers to be changed. Think about whether it would be advantageous to convert along with another school or schools, perhaps in a collaborative partnership or multi-academy trust. Your legal advisor will be able to provide further information as to the different conversion models.
Set up Working Groups
Whilst some decisions need to be made by the whole Governing body, many others can be delegated to smaller working groups or sub-committees. In order that everyone understands what they need to do, terms of reference should be clearly set out so that the members of the sub-committees know when they need to report back.
SA Law's dedicated Education team regularly assists and advises schools on all legal matters. To find out more about how we can help schools considering Academy Conversion request the SA Law Academy Conversion Pack by emailing victoria.thomson@salaw.com
If you would like more information or advice relating to a specific matter, please do not hesitate to contact Chris Cook on 01727 798017 or by email at chris.cook@salaw.com or any member of the Education Team.
© SA LAW 2012
Every care is taken in the preparation of our articles. However, no responsibility can be accepted to any person who acts on the basis of information contained in them. You are recommended to obtain specific advice in respect of individual case.