Case Study: External Review of Governance and Progress Review for Palladian Academy Trust
An external review of governance (ERG) helped Palladian Academy Trust to strengthen its financial oversight, sharpen strategic focus, and build the capacity needed for sustainable growth.
Context
The Palladian Academy Trust was established in 2016 and operated 11 schools in Bath, North-East Somerset and Wiltshire at the time of their external review of governance (ERG). This included one secondary school and ten primary schools, holding minority Church of England articles of association.
The trust commissioned an ERG from NGA in July 2024, specifically to assess its capacity to support future growth. This followed significant leadership changes, including the appointment of a new CEO in September 2021 and a highly experienced governance professional in 2022. The board was noted as generally effective and well-led by an experienced chair.
NGA consultant Adele Haysom conducted the review.
Impact
Between the commissioning and start date of the review, the trust identified a financial shortfall and engaged with the DfE’s former Education and Skills Funding Agency to address this.
Our consultant was able to adjust the focus of the review accordingly. The ERG provided information about how effectively the board was addressing this shortfall and how to mitigate any future financial risks.
While the current board was proactive, the review highlighted several functions of governance which needed urgent change.
Financial and risk management
The discovery of the financial shortfall confirmed that the board lacked necessary assurance, partly because the historic internal audit service was inadequate.
The compliance checks of the review helped the board to consider their processes in more detail, with the goal of achieving full compliance with the DfE’s Academy Trust Handbook.
To meet this expectation, the board temporarily combined the finance and audit committees. Trustees were urgently recommended to undertake high-quality risk management training. The consultant encouraged the board to think in depth about the terms of reference of its committees and whether these remits had contributed to the trust’s emerging financial issues.
Strategic clarity
While the trust’s vision was clear, their development plan lacked measurable key performance indicators (KPIs). This made it difficult to monitor progress objectively.
The trust had identified growth as a key priority, but their strategy required more development, particularly on how their operational functions would adjust to expansion and the benefits that growth would bring.
Expertise and recruitment
The board recognised it needed to recruit new trustees, particularly those with experience from the multi academy trust sector. This would enhance their capacity and bring in new skills to drive the necessary improvements.
The reviewer also challenged the board to consider the distribution of its leadership and how all board members could play their part.
Key benefits
The ERG and subsequent progress review provided Palladian Academy Trust with a vital framework for improvement. The review’s key benefits included:
Roadmap for development
Detailed findings provided the trust with the information to write a governance development plan. This plan focused on creating measurable KPIs, improving risk management, clarifying board behaviours, and redrawing the terms of reference for the trust-wide committees.
Cultural validation
The review found the board was well-led and supported by a highly competent governance professional. Their culture enabled trustees to ask challenging questions and gave them the confidence to have courageous conversations. The trustees were praised for immediately acknowledging a financial issue and seeking the best way forward.
Structural clarity
The review confirmed that the trust’s distinct tiers of governance - members, trustees and local governance committees - had well-defined, harmonious working relationships, referencing and understanding their scheme of delegation.
Accountability focus
A progress review found that steps were being taken based on the action plan and that these measures are having the desired impact. The trust was able to address their weaknesses in strategic oversight and recruit new trustees to ensure long-term stability and capacity for growth.
Evidence for growth
The ERG helped to provide the evidence required for the DfE’s regional director to allow two new schools to join Palladian Trust, including one sponsored school.