This letter, to finance contacts in all English local authorities and other interested parties, seeks views on the proposed changes for local authorities transferring financial surplus of a predecessor school to an academy, where the school has had its application to convert to academy status approved.
The Academy Conversions (Transfer of School Surpluses) Regulations 2010 state when a local authority must transfer the financial surplus of a predecessor school to an academy when it converts. We are consulting on replacing these regulations with a new set on 1 January 2014. These would provide extended timescales to enable accounts to be closed down successfully, to provide absolute closure where requests for reviews are not received in time, and to provide arrangements for splitting balances at federated schools.
We would like to hear local councils’ and other interested parties’ views on these proposals through our consultation on Academy Conversions (Transfer of School Surpluses) Regulations 2013.