Academies
(asked on 10th May 2018) - View Source
Question to the Department for Education:
To ask the Secretary of State for Education, what the total value was of related party transactions made by academies and academy trusts in (a) the year ending 31 August 2016 and (b) each of the previous five years.
Related party transactions involving academy trusts encompass both receipts by and payments by trusts and so there are separate totals for each. The information requested, including both payments made by and receipts received by academy trusts, was included for the first time in the Academies Sector Annual Report and Accounts for the academic year 2015 to 2016.
Payments made by academy trusts to related parties:
| Number of Related Party Transactions | 2015/16 payments to related parties (£000) |
£1 to £50,000 | 2,636 | 24,627 |
£50,001 to £100,000 | 183 | 12,585 |
£100,001 to £200,000 | 119 | 16,006 |
£200,001 to £250,000 | 25 | 5,662 |
£250,001+ | 70 | 61,922 |
TOTAL | 3,033 | 120,802 |
Income received by academy trusts from related parties:
| Number of Related Party Transactions | 2015/16 receipts from related parties (£000) |
£1 to £50,000 | 857 | 9,574 |
£50,001 to £100,000 | 135 | 9,541 |
£100,001 to £200,000 | 88 | 11,471 |
£200,001 to £250,000 | 16 | 3,565 |
£250,001+ | 59 | 39,066 |
TOTAL | 1,155 | 73,217 |
As the tables above show, £120,802,000 (62%) of the total value of all related party transactions is accounted for by academy trusts making payments to related parties, whilst £73,217,000 (38%) represents income received by academy trusts from related parties. Income received from related parties includes: transactions with subsidiary companies or shared services, diocesan education authorities, related charities as well as donations or services provided by trustees, or trustees’ family members.
This information was not previously collected in this format and we do not have comparable analysis for previous years.
Academy trusts are required to disclose all related party transactions in their audited annual accounts, which are publicly available for all years the academy trust has been in operation.