If your school is converting to an academy with a sponsor, what happens to the surplus balance on conversion?

If you are joining an Academy Trust as a sponsored academy, there are two possible routes to closure of the maintained school;

• The route where the governing body or Interim Executive Board applies for an academy order – the surplus with transfer to the Academy Trust
• The route where either the school is closed through statutory processes or the Secretary of State issues an Academy Order in respect of a school eligible for intervention – The surplus remains with the Local Authority (though the surplus can be transferred to the Academy Trust and, in practice, some LAs have agreed to this).