Pictured above: Helen Drew
New academies, removed from local authority control, need to
have an effective management team if they are to prosper, a
Midlands expert has warned.
Their financial and administrative capabilities need to be spot
on, according to Helen Drew, a partner at the Midlands office of
national audit, tax and advisory firm Crowe Clark Whitehill,
recognised as one of the leading advisers in the new Academies
sector.
Academies, which were launched under Labour and are being driven
forward by the Coalition, are legal entities with a board and
trustees, companies limited by guarantee, with more freedoms and
the ability to set their own pay and conditions for staff.
The Government believes that, unburdened of constraints, the
academies can excel; their top headache would be the potential
misuse of public money if things go wrong.
Crowe Clark Whitehill now acts for twelve academies in the
Midlands and over 60 nationally.
Ms Drew, Midlands Not for Profit partner, stressed that the
basics needed to be in place - engaging suitably experienced
solicitors to facilitate the land and staff transfer to the Academy
Trust; appointing auditors; and producing accurate management
accounts as well as statutory financial statements and returns.
It is important to establish robust financial procedures and
systems from the outset.
"They may need to recruit suitably qualified and experienced
staff to cope with the additional administrative, financial and
company secretarial responsibilities that being removed from the
local authority will bring.
"The governing body will need to have the relevant experience
and skill set to question the senior management team of the Academy
Trust and to understand their responsibilities as
directors/trustees.
"With more freedoms over the choice of suppliers the Academy
Trust will need to decide what services should be brought in-house,
left with the local authority or sourced with alternative suppliers
and should this transition be done over the medium to long term
rather than all at the outset to minimise disruption.
Ms Drew said there were also issues over the Young People's
Learning Agency, the Coventry-based government organisation which
funds further education in England.
She went on: "Uncertainty from the outset over the level of the
annual grant from the Agency and also the cost base of the Academy
Trust, once the responsibility for arranging third party contracts
is taken over from the local authority, will prove testing.
"It is important to remember there is no local authority safety
net to fund deficits therefore maintaining budgetary control is
imperative. Hence, academies may need to assess how they can fully
utilise assets and develop commercial activities to generate
additional income and whether a subsidiary company should be set up
to run the process." Ms Drew continued: "A key issue is how do they
do all this with the minimum of disruption and also keeping all the
key stakeholders happy - parents, students, the local community,
staff and teaching unions.
"And can all this be done and at the same time raise or at least
maintain standards and results.
"These are big but achievable challenges and ones that don't
have to be faced alone."
For more information about Crowe Clark Whitehill, please visit
their website here: www.croweclarkwhitehill.co.uk