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Academies: Investment

Volume 464: debated on Tuesday 16 October 2007

To ask the Secretary of State for Children, Schools and Families how many academies have charitable investment funds established by their sponsors following changes to the programme announced in March 2006; and what information his Department collects on the use to which such funds are put. (156255)

[holding answer 8 October 2007]: Sponsorship for the first Academies was provided in the form of a contribution to the capital costs of new buildings. In July 2006, the endowment model of sponsorship was introduced whereby Academy Trusts set up an endowment fund, the proceeds of which are to be used to combat the impact of deprivation on education in the local community. As at 4 October 2007, 13 Academies have had charitable investment funds established by their sponsors.

To date, the Department has not collected information from these Academies on their endowment funds. However, the model Deed of Gift requires the Academy Trust to supply the Secretary of State and the Academy Sponsor with an annual statement showing how the fund has been used. The Department will collect information from Academy Trusts on the amounts received from this form of sponsorship on a six monthly basis, in the same way as it does for traditional sponsorship, and the published Annual Accounts for each Academy will record how much has been received and how much has been spent, identifying the Endowment Fund separately from other funds.