Academies Accounts Direction Important Update

Academies Accounts Direction Important Update

The latest Academies Accounts Direction has just been released and can be found on the tab below.
Click to view latest Academies Accounts Direction

In addition to the main changes which are detailed below there will also be additional supplementary bulletin(s) that are released separately that focuses on Covid-19. The expectation at this stage is that this will cover, additional trustees report requirements, additional guidance on regularity and disclosures regarding additional funding during this period.

What has changed in this edition?

  • Reflecting new statutory elements in the trustees’ report, covering the success of the company, employee engagement and business relationships [3.1.11] and [annex A – Coketown Trustees’ Report]
    reflecting new statutory requirements for streamlined energy and carbon reporting in the trustees’ report [3.1.25]
  • clarifying that instances of irregularity, impropriety or non-compliance noted in the accounting officer’s statement on regularity, propriety and compliance, and in the reporting accountant’s report on regularity should state the relevant monetary amounts, if known [3.3.2, 4.2.1, annex B (2.18) and annex B (3.12)]
  • introducing a requirement for academy trusts to explain how their audit arrangements are affected by the newly revised FRC Ethical Standard, where applicable [3.2.11 and annex A – Coketown Governance Statement]
  • referencing ESFA’s checklist to help trusts prepare for external audit [4.1.5]
    identifying legal costs in the notes to the financial statements [5.1.23 and annex A – Coketown note 9]
    introducing an analysis of changes in net debt as a note to the financial statements, to comply with the updated SORP [5.3.2 and annex A – Coketown note 27]
    updating the example funds notes to provide guidance where academies, who are part of trusts with multiple academies, have a zero balance on all funds in both the current and previous years [7.1.3 and 7.1.9]
  • explaining that the transfer of activities to a wholly-owned subsidiary should be accounted for as a merger, to comply with the updated SORP [7.2.2]
  • confirming that two or more subsidiaries may only be excluded from consolidation if they are not material when taken together, to comply with the updated SORP [7.2.4]
    where trustees have reviewed and taken account of the guidance in the Governance Handbook and competency framework for governance, encouraging them to explicitly state this in the governance statement [annex A – Coketown Governance Statement]
    updating the Teachers’ Pension Scheme notes to reflect the latest actuarial valuation [annex A – Coketown note 31]
  • clarifying that the requirement to have an accounting officer to sign off the regularity statement includes the period in the run-up to trust closure [annex B – paragraph 2.26]

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Academies Accounts Direction Important Update

Academies Accounts Direction Important Update
Academies Accounts Direction Important Update