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COVID-19 Update for Academies

19th March 2020

We find ourselves in unchartered territory and uncertain times. The rule book is being written minute by minute. Even for the most well-organised Trusts, I doubt there has been contingency planning to deal with the vast range of issues the sector is facing.

In light of this we are pleased to share with you our normal client communications as it is in the best interest of the sector to provide as much information, guidance and help as possible. 
 
Our expert Academy team have identified some of the key areas of governance and financial governance that your Trust should be considering. In difficult times good governance is even more important as Trusts are dealing with £millions of public money and are responsible for the wellbeing of all pupils and staff, so every decision that is made must be properly justified and documented.
 
If you require any support from us then please do get in touch. We are currently working as usual and there will be someone within Bishop Fleming who will be able to help.
 
We make no apology for the long list of questions to ask and issues to consider. These are the areas that we consider are the most important. However, we cannot guarantee we have covered everything and will issue further guidance as things evolve:
 
Financial procedures

  • You may need to amend your scheme of delegation (SOD) or finance policy if staff are unavailable. You cannot simply ignore your own internal rules because of an emergency situation. You need to demonstrate compliance with Trust approval limits.
  • We appreciate that these are difficult times so all decisions must be fully documented with rationale to support. If the SOD cannot be followed, then the decisions must be made by the Trust Board.
  • You will need to consider potential exposure to fraud due to reduced segregation of duties with staff off sick. You may need to put new controls in place.
  • Financial fraud generally will be a heightened risk area so watch out for phishing and other scams especially if untrained staff are supporting the finance team.
  • Ensure temporary staff have minimal access to finance systems.
  • Ensure all IT control procedures continue such as off-site backups etc
  • Ensure your payroll procedures will enable staff to be paid this month without compromising on controls. Do you know if your payroll provider will be able to deliver – or will you need to put emergency measures in place to pay staff
  • What is your financial exposure on any non-educational operations e.g. sports centre?
  • Make sure you are up to date with policy decisions from the Government such as free school meals and UIFSM.
  • Be clear on the position regarding cancellation refunds for school trips, including refunds to parents.
  • Minimise food wastage if the schools are closed.
  • Monitor the position for any novel or contentious transactions and seek prior approval from the ESFA as required.
  • Review the forecast outturn of the Trust and contact the ESFA as soon as possible if the Trustees consider the forecast is materially different from the 3-year Budget Forecast Return.

Decision making

  • Review whether your articles of association allow virtual meetings and meetings by telephone.
  • Ensure you have a policy for virtual meetings.
  • Keep the Trustees in the loop – no doubt the chair is being regularly updated – pass it on to all Trustees as they are jointly responsible for all decisions being made.
  • Ensure quorate for decision making.

Risk management

  • Report to the audit committee on a regular basis on significant risks across the Trust, including at school level. It is at times like this that you find out whether your Trust-wide communication strategy on risk management is working.
  • Chair of audit should liaise regularly with the CEO – the CEO will value support at this time and will be reassured to know their actions are supported and in line with Trust policy.
  • Risks around reopening must be considered as soon as possible.
  • The Trust must ensure it always complies with all statutory duties.

The Government made an announcement at 5pm yesterday regarding schools closures. 

Full details of the announcement can be here.

However, you should know that the government has issued its draft coronavirus bill which includes an emergency law to allow the Government to force schools to stay open. We strongly recommend your Academy fully understands the implications of this bill before any action is taken. The Government has summarised the proposal for the education sector as follows:
 
“provide powers to require educational institutions or childcare providers to stay open or relax some requirements around education legislation in order to help these institutions run effectively during the event of an emergency. This could include reducing teacher ratios, adapting school meal standards and relaxing provisions for those with special educational needs. This will ensure that children, young people and those who work with them remain safe while minimising disruption to everyday life and progression to further and higher education or employment by ensuring schools have the flexibility and support they need to respond pragmatically to the changing situation”
 
Full details of the bill can be found here.

We will be keeping up to date with the latest updates and issues circulating Coronavirus and the impact it could have on your sector Trust, all updates will be posted directly onto our dedicated COVID-19 Knowledge Hub which can be found here.

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