The Academies Accounts Direction – Waller Help

The Academies Accounts Direction is the reference pack for academy trusts and their auditors to use when preparing and auditing financial statements for the accounting period ending on 31 August annually. It supplements the Academies Financial Handbook. In producing the Accounts Direction, EFAtakes requirements set out by the Charity Commission in its Statement Of Recommended Practice (SORP) and translates them into a form applicable to academy trusts.

The Accounts Direction outlines the requirements set out in academy trusts’ funding agreements with the Secretary of State where each academy trust must:

prepare an annual report and financial statements to 31 August
have these accounts audited annually by independent registered auditors
produce a statement of regularity, propriety and compliance and obtain a regularity assurance report on this statement from the auditor
submit the audited accounts and auditor’s regularity assurance report to the EFA by 31 December
file the accounts with the Companies Registrar as required under the Companies Act 2006
publish the audited accounts on the trust’s website by 31 January

The Accounts Direction explains the elements you must include in your academy trust’s annual report and financial statements and the accounting treatments required. It also provides a model format for the report and the financial statements and ensures consistency of treatment between academy trusts.

In addition to the audited financial statements, you will be required to submit financial returns to EFA annually. You can find out how to submit these in the detailed guide to academies financial returns.

Academy auditors

The National Audit Office (NAO), auditor of the department’s group accounts which include academies’ consolidated financial statements, has produced a set of group communications for academy auditors setting out in detail:

the academy auditor’s role in the department’s group accounts
NAO’s expectations of academy auditors
the risks of material misstatement in the group financial statements