What is the legal status of an academy? Academy schools are defined in section 1A of the Academies Act 2010 (AcA 2010). Academy schools are technically defined as independent schools, but this independence is from their local authority, not from the state. An academy school's funding comes from the Secretary of State and is regulated by a funding agreement negotiated with the Department for Education (DfE) or the Education Funding Agency. Academy schools can be special academies if their pupil intake consists entirely of children with statements of special educational needs. There are also alternative provision academies, defined in AcA 2010, s 1C. They are 'schools' (see section 4(1C) of the Education Act 1996 (EA 1996)) and are roughly equivalent to the maintained-sector pupil referral units. The third category of academy is the 16 to 19 academy, defined in AcA 2010, s 1B and excluded from the definition of a 'school' by EA 1996, s 4(1B). Note that an academy