The Academy Conversions Regulations 2013 require that the Local Authority and the Academy Trust agree on the method of determining the surplus balance. If no agreement is reached, the balance would be split based on pupil numbers.
The formula used for splitting surplus balances at federated schools where there is no agreement is A X (B / C), where:
A is the amount of a school’s delegated budget that has not been spent by the governing body or any head teacher in the federation immediately before the conversion date;
B is the total number of pupils registered at the school immediately before the conversion date; and
C is the total number of pupils registered at all of the schools within the federation on that date.