ESFA Update April 2023
Academies Accounts Direction
The ESFA have released the new Academies Accounts Direction for 2022 – 2023 and the summary of main changes are outlined on pages 5 & 6 of the following link, we have also listed below.
What has changed in this edition?
The following are the main changes made this year and there have been no new requirements introduced. Where relevant, the model accounts have also been updated to reflect changes made.
The ESFA have:
• Clarified how trustees should use the Direction (introduction)
• Clarified the expectations for interim arrangements, in the absence of key signatories (paragraph 1.18)
• Updated feedback on non-compliance with the Direction (paragraph 1.21) and updated the themes arising from ESFA’s assurance work (paragraph 1.22)
• In response to school buildings’ safety risk, they have enhanced the Direction’s content;
– clarified that the trustees’ report on principal risks and uncertainties should consider those risks impacting on trustees’ responsibilities to ensure the trust’s estate is safe, well maintained and complies with relevant regulations (paragraph 2.14)
– clarified that the review of value for money statement encompasses estates safety and management (paragraph 2.40)
– suggested that accounting officers should consider demonstrating how they have effectively used relevant funding to ensure the trust’s estate is safe, well-maintained, and complies with relevant regulations, as one of their value for money examples (paragraph 2.42)
– clarified that the statement on regularity, propriety and compliance encompasses estates safety and management (paragraph 2.60)
• Updated the guidance on the treatment of loans (paragraph 2.113)
• Reminded academy trusts of the need to separately disclose material income sources in note 4 (paragraph 2.130)
• Clarified that teaching assistants are categorised as support staff in the staff costs note (paragraph 2.137).