What to consider before converting to an academy
The Academies Act enables maintained schools to apply to become academies. We have outlined some questions below that you may wish to consider before converting to academy status:
- Have you agreed the balances to be transferred on conversion with the local authority, and Diocese, if appropriate?
- What will happen to any school fund money?
- Have you ensured that any land and buildings leasehold will be transferred to the trust?
- Have you obtained an inventory of all the fixed assets to be transferred at conversion?
- When will you convert?
- Converting between 1 April – 31 Aug would allow the trust to prepare accounts to the following 31 Aug
- Converting between 1 Sept – 31 March would require a short period of accounts to be prepared to 31 Aug
- Have you had a VAT review to determine whether the trust needs to register for VAT?
- Have you had a tax review to determine if you have any taxable trading income?
- Do you have appropriate insurance in place
- The EFA recommend joining their RPA Scheme, but this doesn’t cover everything e.g. motor vehicles
- Have you considered the need for a trading subsidiary?
- Have you established a suitable nominal structure on your accounting system?