The Academies Act 2010 allowed outstanding schools to become academies giving them greater autonomy and financial freedom. Later in the year, the opportunity was made available for less well performing schools to also convert, in partnership with the stronger schools.
Interest from schools has been strong. By the end of last year 1,194 schools had converted and a further 581 had registered an interest and were in the various stages of conversion.
The primary fiscal guidance for the newly established academies is still ‘The Academies Financial Handbook’. This is a document issued over five years ago in the context of failing schools being required to convert to Academy status.
The Young People’s Learning Agency (YPLA) has now issued an accounts direction, replacing chapter 5 of the handbook regarding annual accounts. It includes a very useful model annual report and financial statements for academies, which reflects the latest Companies Act, Charity Commission and YPLA requirements.
Areas highlighted for guidance include:
- Land and buildings
- Local government pension scheme
- Other assets and liabilities transferred on conversion
Accounting for Academies involves a number of highly technical areas of financial reporting. Rothmans has a clear understanding of the issues facing both converting and newly converted schools. We are able to support the Governing Body, as well as staff, in meeting their statutory obligations and getting best value from the resources available.
If you are an Academy, a converting school or considering the benefits of Academy status we are more than happy to discuss your school’s position and how we can assist. Please contact us for more information or to arrange an appointment.