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Academies Act 2010

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7Transfer of school surplusesE+W

This sectionnoteType=Explanatory Notes has no associated

(1)This section applies if—

(a)an Academy order has effect in respect of a school,

(b)the order was made following an application under section 3, and

(c)the school is to be converted into an Academy.

(2)The local authority must determine—

(a)whether, immediately before the conversion date, the school has a surplus, and

(b)if so, the amount of the surplus.

(3)The local authority must pay any amount determined under subsection (2)(b) to the proprietor of the Academy, subject to the provisions of regulations under subsection (4).

(4)Regulations may make provision in connection with the determination and payment of the amount of a surplus under this section.

(5)Regulations under subsection (4) may in particular include provision—

(a)requiring the local authority to inform the proprietor of the determinations under subsection (2);

(b)authorising the proprietor to apply to the Secretary of State for a review of those determinations;

(c)about the procedure for, and the Secretary of State's powers on, any such review;

(d)about the effect of any such review on the amount required to be paid by the local authority to the proprietor (including provision requiring repayment of sums by the proprietor or the payment of additional sums by the local authority);

(e)about the time limits for doing anything required or permitted to be done under this section or the regulations.

(6)For the purposes of this section—

(a)a school has a surplus immediately before the conversion date if, at that time, there is an amount made available by a local authority to the school's governing body (under section 50 of SSFA 1998 or otherwise) that has not been spent by the governing body or the head teacher;

(b)the amount of the surplus is that amount.

(7)For the purposes of subsection (6), the amount which, immediately before the conversion date, has been made available to a school's governing body must be calculated taking into account any relevant redetermination for the funding period in which the conversion date falls.

(8)In subsection (7)—

  • funding period” has the meaning given by section 45(1B) of SSFA 1998;

  • relevant redetermination” means a redetermination of the school's budget share which is required in accordance with regulations under section 47 of that Act.

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