When a Local Authority (LA) maintained school converts to an academy, it has four months from the date of conversion to finalise and close its accounts and submit these to the LA. The LA then has one month to agree the accounts and forward the school's closing balance to the newly formed academy. For central payment schools, this will be the closing ledger balance and for external bank account schools this will be the closing cash balance.
Once we have been informed by the DfE that a funding agreement has been signed and that a school has converted to an academy on a given date, we issue the following letter & guidance document. The letter sets out the required return to the LA and the DfE document provides further information on the procedures & legislation relating to the transfer of balances from closing schools to the new academies. Copies of these are sent to the Headteacher, Chair of Governors & also to the School Finance Manager.
Central payment schools should also refer to the following guidance on accounts with their suppliers:
The letter below details the deduction made from closing school balances to cover property and legal costs incurred by the Local Authority as a result of the conversion.
Academy Conversion Return Forms