Attendees at our recent annual event for Academy Leaders, Staying Compliant. Learning Lessons. Looking Forward, awarded all our speakers gold stars and top marks for their informative sessions. The recent change in government meant the updates that our not-for-profit and education gurus’ provided were particularly timely.
Here we take a look at some of the subject areas covered by our speakers.
BUDGETS & FUNDING
Julia Harnden, funding specialist from ASCL, kicked the day off. Given the recent general election, Julia had to change her presentation from when she first planned it a few weeks ago to what she could cover in her session.
Normally by now, officials at the Department for Education would have released information about potential 2025/26 funding levels for academies. However, due to pre-election sensitivities, they couldn’t transact any government business that would require ministerial sign-off.
ASCL will be updating academies on the position as soon as it becomes clear. In the meantime, Julia provided a quick recap of where we’re at in the 2024/25 funding round.
FINANCIAL & REGULATORY CHANGES: KEY TAKEAWAYS
CP’s Head of Education, Andy Jones, gave an update on some of the key financial and regulatory issues for academies from the last 12 months. Specifically looking at what might lie ahead in the 2024 Academy Trust Handbook.
Andy highlighted some of the key themes coming out of the 2022/23 year-end external audit and regularity assurance process.
He then talked through the key changes in the 2023/24 Academies Accounts Direction and what trusts should be doing now to deal with some of the key areas of non-compliance identified by the ESFA concerning trustees’ reports and governance statements. The changes had a particular focus on regularity, propriety and compliance statements.
Andy also emphasised the new requirements around complying with requirements of the financial statements and the supporting notes and disclosures.
When it comes to the Academy Trust Handbook (ATH) due to be published later this year, it’s a little more difficult to give a definitive overview of expected changes. However, Andy identified a couple of areas where we believe we might see changes. These included changes to leasing agreements for academy trusts and the new academy trust governance guide.
Andy provided a few reminders on the guidance published last month on related party transactions (RPTs):
- All RPTs must be reported to the ESFA and critically, in advance of the transaction
- The threshold for seeking pre-approval from the ESFA is now £40,000 per contract value or agreement (since 1 Sept. 2023)
- Exemptions from pre-approval (which also relates to “at cost” requirements) for:
- Colleges, Universities or Schools that are trust sponsors
- Other state-funded Schools and Colleges, including academies
- Services relating to the religious ethos and character provided of a trust that are provided by a Religious Authority (e.g. Diocesan SLA charges)
Finally, Andy outlined a couple of other key updates and “good to knows”. He covered the Academy Trust Governance Code, which whilst voluntary is a useful approach. He also provided a timely reminder about some of the ESFA’s Good Practice Guides and areas where additional guides may be provided in the future.
ENGAGING IN AN SRMA REVIEW
Rebecca Beaver, Lead Consultant at RBMA and Sharon Thorp, Director of Consillium Business Services are both School Resource Management Advisers (SRMA). In their session they explained what exactly an SRMA review is and more importantly isn’t. The benefits and how academies can benefit from engaging with an SRMA.
Their focus is on using resources to make the biggest positive difference to pupils. Helping schools to explore avenues for continual development and improvement. Fine-tuning systems and approaches. It’s also about sharing ideas and experiences. After all none of us is as smart as all of us.
FREQUENTLY ASKED QUESTIONS ABOUT VAT AND ACADEMIES
Helen Channer, a Senior Manager in our VAT Advisory team here at Cooper Parry specialises in working with clients from the education and not-for-profit sectors. She’s been with the business for nearly five years now and used her knowledge and experience from that time to present an FAQ session.
Whilst there haven’t been many new developments or cases which particularly impact on the application of VAT for academies, there are a number of commonly asked questions around VAT compliance that come up.
Take a look at the video from Helen’s session below.
COMMON ISSUES AND PROBLEM AREAS IN THE YEAR-END AUDIT
Glen Bott, our Not-for-Profit Associate Partner, delivered a session identifying the key feedback and learnings from the previous year’s audit season. He highlighted some easy fixes to ensure this year’s audit season is a smooth process for everyone involved.
Glen started by talking through the year-end accounts feedback issued by the ESFA. He then shared some of the more common management letter points, or “MLPs”, that we raised during the previous year’s academy audits. Glen talked through some key pre-audit checks that can be performed so that these MLPs can be avoided. Ensuring that Trusts will have nice clean audit finding reports this year with reduced recommendations arising.
He then went on to explain the benefits of a pre-audit “health check” suggesting some things that could be done now and in the run-up to the audit starting. Top tips included ensuring that those vital opening balances, control accounts and fixed asset registers were all reviewed, reconciled and tidy. Glen also talked about the importance of ensuring that trusts are familiar with the information requests and making sure that everyone is aware of the key dates for the audit planning, fieldwork and completion. Having a clear timetable in place so that all the work can be completed well in advance of committee meetings will ensure the whole process is calm for everyone.
Glen then moved on to some more logistical matters. He gave a refresher tour of our information portal, INFLO, which is used to coordinate audit requests and information provided by trusts. INFLO is a great tool and provides a clear picture for both CP and our clients as to the status of the audit as it progresses. Glen also talked through some simple “INFLO etiquette” and ways of working with INFLO to ensure the system works as efficiently as it can.
The session closed with Glen talking through the ways that CP will be supporting our Trust clients. Including the myriad of ways that clients can contact us and the key communications that they can expect throughout the audit process.
GETTING SUSTAINABILITY SUSSED
Andy gave an overview of the Streamlined Energy and Carbon Reporting (SECR) requirements which apply to large academy trusts. Those who meet two or more of the following thresholds over 2 consecutive financial years, at a group level:
- Income > £36m
- Balance sheet assets > £18m
- Employees > 250
Andy outlined what SECR information must be disclosed in trustees’ report and what needs to be included at a minimum level. This includes things such as the energy consumption used to calculate emissions. He also highlighted some available exemptions. Stressing that Trusts will still need to explain why they are using these exemptions.
Further changes to SECR are expected to be announced sometime this year. Again, there may be some delay thanks to the impact of the recent elections. We’ll be updating our academy clients once those changes and their implications are clearer.
Find out more about sustainability for academies here.
KEEP UP TO DATE
We put on events throughout the year. Some for specific sectors and others which will be of general interest to business and finance leaders. We won’t spam you with content. We know what it’s like to be on the receiving end of too many emails. But you never know there might be an event or nugget of information which will make your life easier.
We’d love to stay in touch with you, let us know if you have any questions on the above.
