Academy trusts occasionally face decisions that don’t fall into the usual day-to-day business — ones that could raise eyebrows or set a precedent across the sector. These are known as Novel, Contentious or Repercussive (NCR) transactions, and the DfE has recently issued a good practice guide to help trusts navigate them.
Understanding when to seek approval — and how to document your decisions — is crucial to staying compliant and avoiding reputational risks.
DfE issues good practice guide on Novel, Contentious and Repercussive (NCR) transactions
The DfE has recently issued a good practice guide on Novel, Contentious and Repercussive (NCR) transactions.
These are transactions which are defined in the Academy Trust Handbook as:
- Novel – the academy trust has no experience of these transactions, or they are outside its normal range of activities;
- Contentious – may cause criticism of the trust by Parliament, the public or the media;
- Repercussive – are likely to cause pressure on other trusts to take a similar approach or have wider financial implications.
If a trust is considering a transaction that falls into one of these categories, it must refer the matter to the DfE before proceeding. This restriction does not mean the transaction is forbidden, but it does mean that the trust does not have the authority to enter into the transaction without prior approval of the DfE.
In most instances academy trusts should be able to determine for themselves whether a proposed transaction is Novel, Contentious or Repercussive. If the transaction is considered to be NCR, the trust should consult the DfE.
If it is not considered NCR, the Accounting Officer - having given the matter full consideration - may proceed with the transaction. In these instances, it’s important that the Accounting Officer documents their rationale so the decision can be justified if challenged.
The next step
If you are in any doubt as to whether a transaction is Novel, Contentious or Repercussive, please contact your local UHY partner responsible for academies who will be able to provide you with the help and guidance required.
