23/01/2025
Academy Newswire
Here’s some information from the recent updates in case you haven’t had the chance to read them.
Reporting
Academies Accounts Direction for 2024 to 2025 (26.03.2025)
The ESFA have published the Academies Accounts Direction 2024 to 2025.
Please find our summary of the changes here.
The primary users of this direction will be those involved in the preparation of the annual report and financial statements. It is relevant to accounting officers of academy trusts. Trustees will also find the direction helpful in ensuring they fulfil their financial reporting responsibilities.
Compliance with the direction, including the separate model accounts document, is a condition of an academy trust’s funding agreement.
The ESFA have also published an updated auditor framework and guide for external auditors and reporting accountants of academy trusts.
Good practice guidance for colleges and academy trusts on novel, contentious and repercussive transactions (26.03.2025)
The DfE has published a good practice guide in relation to novel, contentious and repercussive transactions for colleges and academy trusts. The guide supplements the requirements for such transactions set out in the academy trust handbook and the college financial handbook by setting out a number of constructed illustrative examples to allow college and academy leaders to better understand the issues involved.
Funding
National Insurance contribution (NIC) grants (19.03.2025)
On Tuesday 18 March 2025, DfE announced the additional funding for schools and colleges to support them with the increase to employer National Insurance Contributions (NICs) costs in financial year 2025 to 2026. The ESFA have published information on the funding for NICs for:
- mainstream schools and schools with early years provision
- high need settings, being delivered through the core schools budget grant for special schools and alternative provision
- post-16 provision
For some academy trusts the funding will fully cover the NIC increase, for others they will be underfunded.
Letter to accounting officers (19.03.2025)
We draw your attention to the latest “Letter to Accounting Officers” which should be circulated by your Clerk to the Board for their consideration.
Training
Upcoming events to add to your diary
Academy Schools Forum – 24 June 2025 – Sign up here
Chair of Trustees and Governors Training – 11 September 2025 – Sign up here
Academy Schools Forum – 16 September 2025 – Sign up here
Regards
Michaela, Gary, James and Matt
PS if you don’t already receive the ESFA updates direct from the ESFA, you can subscribe here.
We specialise in advising business managers and bursars on the accounting, VAT and audit requirements for an Academy.
If we don’t already act for your school or if you would like to attend our next Academy Forum (free of charge), speak to Michaela Johns, our Academies expert on 023 8046 1256.
You can also visit www.academyvat.co.uk for guidance on VAT rules for academy schools.
