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Related Parties

There have been some subtle changes to who is now classified as a related party and subsequently a potential increase in the related party disclosures required in the year end accounts.  An individual or organisation is a natural related party under any of the following circumstances:
1.    Trustee/Director
2.    Land donor
3.    A child, parent, grandparent or sibling of 1 or 2
4.    A member of the academy’s key management personnel
5.    The spouse of any listed under 1-4
6.    Anyone in business with any listed under 1-5
7.    Close family member of anyone who has control or significant influence over the academy

When trustees/directors and key staff are completing their declaration of interests the above information will be pertinent to ensuring the information is accurate and complete.  Multi academy trusts must now publish local governing body declarations on their website, declarations of key staff need to be collected but not published.

The most common occurrence within academies is where the family members of trustees/directors or key management are employees of the academy. This salary would now require disclosure within the accounts in the same way as that a staff trustee/director already is.

Where services are provided to the academy by anybody listed above those services must be provided at no more than cost.  Cost is defined as full cost incurred by the service provider but must not include any element of profit.