Related Party Transactions

RELATED PARTY TRANSACTIONS POLICY
adopted by
Countess Anne School
(A Church of England Academy)

Living God’s Love through:

•Academic provision that recognises the need for excellence in teaching and learning.

•Holistic provision that encourages Christian hope; building spirit and soul through faith orientated pastoral care.

•Inspirational provision through a modern curriculum that celebrates diversity and provides new opportunities.

Adoption

Recommended and Approved by: Finance and Resources Committee. Date: 3rd March 2025 Last reviewed on: 03/03/25 Next review due by: 03/28
The Governing Body of Countess Anne School adopted this policy on 10th March 2025.
It will review the policy triennially.
Aims

The aim of the policy is to ensure that financial governance with related parties complies with the Nolan principles of public life, the Academies Trust Handbook and its own ethos.
Scope
1.1. The following persons (‘persons’ meaning both individuals and organisations) are related to the school for the purpose of this related party transactions policy.
• members, trustees and the employees of the academy trust
• individuals or organisations related to a member, trustee or employee of the academy trust
1.2 For these purposes the following persons are related to a member, trustee or employee:
• a relative of the member, trustee or employee. A relative is defined as a close member of the family, or member of the same household, who may be expected to influence, or be
influenced by, the person. This includes, but is not limited to, a child, parent, spouse or civil partner
• an individual or organisation carrying on business in partnership with the member, trustee or employee or a relative thereof.
• a company in which a member or the relative of a member (taken separately or together), or a trustee or the relative of a trustee (taken separately or together), or an employee or the relative of an employee, holds more than 20% of the share capital or is entitled to exercise more than 20% of the voting power at any general meeting of that company
• an organisation controlled by a member, trustee or employee or the relative of such (acting separately or together), - for these purposes an organisation is controlled by an individual or organisation if that individual or organisation can secure that the affairs of the body are conducted in accordance with the individual’s or organisation’s wishes
• any individual or organisation given the right under the trust’s articles of association to appoint a member or trustee of the academy trust; or any body connected to such individual or organisation
• any individual or organisation recognised by the Secretary of State for Education as a sponsor of the academy trust; or any body connected to such individual or organisation.

Reporting, monitoring and approval requirements

2.1 Trusts must report all contracts and other agreements with related parties to ESFA in advance of the contract or agreement commencing or being renewed, using ESFA’s related party on-line form.
2.2 Trusts must obtain ESFA’s prior approval, using ESFA’s related party on-line form, for contracts and other agreements for the supply of goods or services to the trust by a related party agreed on or after 1 September where a contract or other agreement exceeds £40,000 in the same financial year ending 31 August.
2.3 Contracts for the supply of goods or services to the trust must be monitored at inception to identify any related party involvement, and the requirements of this policy applied in such instances. The School Business Manager should maintain a log of related party contracts.
2.4 Members, trustees and the Senior Leadership Team will confirm annually their awareness of related party transactions.
Exemptions from approval and reporting
3.1 Salaries and other payments made by the trust to a person under a contract of employment through the trust’s payroll are exempt.
3.2 In addition this approval requirement does not apply in the following circumstances:
• contracts and other agreements for the supply of goods or services to a trust by the following educational establishments:
▪︎ colleges, universities and schools which are sponsors of the academy trust
▪︎ state funded schools and colleges, including academy trusts.
This concession does not apply to transactions with a subsidiary of such a related party.
▪︎ the provision of services to an academy trust with a religious designation, for essential functions fundamental to the academy trust’s religious character and ethos which can only be provided by their religious authority.

Approval of novel, contentious or repercussive related party transactions

4.1 Whilst such transactions may be approved by the EFSA, the Governing Board will not approve them.
At cost requirements
5.1 Except as below a trust will pay no more than ‘cost’ for goods or services (‘services’ do not include contracts of employment) provided to it by a related party.
Exemptions:
5.2 The ‘at cost’ requirement does not apply to the trust’s employees other than the Senior Leadership Team.
5.3 Contracts under £2,500 are exempt. Where a contract takes the trust’s cumulative annual total with the related party beyond £2,500, the element above £2,500 must be at no more than cost.
5.4 In relation to organisations supplying legal advice or audit services to the academy trust, the ‘at cost’ requirement applies where the organisation’s partner managing the service is a member or trustee of the trust, but not in other cases for those organisations. The published ethical standards for auditors prevent partners or employees of the audit firm from acting as a trustee of their client trust, but not of other trusts.
5.5 For academies with a religious designation, the provision of services to protect and develop their religious character and ethos, which can only be provided by their religious authority, are regarded as meeting the “at cost” requirement.
END