Related party transactions are any services, goods, donations or contracts that are provided to or by people or organisations that are related in any way to the academy or the trust.
Trustees, members, local governors and senior staff members in academies and trusts are required to declare any interests in proposed transactions and to take responsibility for avoiding any real or perceived conflicts of interest.
From 1 April 2019, trusts and academies will also be required to:
- Report all transactions with related parties to the ESFA before the transaction takes place or is agreed with the supplier.
- Obtain prior approval from the ESFA for any transaction with a related party for any contracts with one supplier that will total over £20,000 in one financial year.
- Approval and reporting is to be done using a new online form which can be found here
- Further advice and guidance is available here
- This is referenced in the Academies Financial Handbook 2018 (section 3.10.4 to 3.10.6)