The Funding Agreement is the contract between the Secretary of State for Education and the academy which sets out the terms on which the academy is funded. The Funding Agreement specifies how the academy is run, its duties and the powers the Secretary of State has over the academy. The Funding Agreement is the method by which academies are held accountable to the Department for Education (DfE). In places the Funding Agreement makes specific references to existing legislation to ensure academies operate in a similar fashion to other state-funded schools and that there is parity between academies and other state schools. Funding Agreements are not static and may be updated as the law and policy relating to academies changes.