The Education Funding Agency (EFA) arranges for academies to receive the payments set out in their funding agreements on a monthly basis. Their revenue funding is called the general annual grant (GAG) and monthly remittance advice notes accompany payments.
Academies are funded on an academic rather than financial year basis and the monthly GAG payments are sent via BACS, arriving in the academy’s nominated bank account on the first working day of each month.
From September 2014 the payment profile for academies will be revised. Currently academies are paid on a front-loaded basis with a higher percentage of their annual GAG funding paid in September. The revised payment profile will distribute GAG funding to academies in equal instalments throughout the year in the hope of providing more consistency across all state-funded schools.
This revision will also help academies with their financial planning by providing consistency in funding month-on-month. For schools considering conversion to academy status, it is hoped that this change will simplify the current arrangement by minimising the fluctuations in funding which are currently experienced upon conversion.
At Nicklin, we can provide tailored advice to academies to assist them to maximise the efficiency of their budgets and make the most of the opportunities available to them. For more information, please contact us.