What you need to know about the difference between accounting requirements pre and post Academy...
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Transcript of What you need to know about the difference between accounting requirements pre and post Academy...
What you need to know about the difference between accounting
requirements pre and post Academy conversion
Chris BeaumontPartner – Clive Owen & Co LLP
Agenda
What is an Academy Is an Academy free Matters to consider Pre/Post conversion The various returns Format of Year End Financial Statements Interim Internal Reviews Top Tips Further information Questions
What is an Academy?
Company limited by Guarantee Members Directors/Trustees Governors Exempt charity – Registered with EFA
Is an Academy ‘free’
Of Local Authority control – YES
Of Whitehall – NO- EFA/DFE/Treasury/NAO
Matters to consider (Pre Conversion)
Articles and memorandum Land transfer – 125 year lease LGPS Valuation Insurance Transfer of agreements e.g. photocopier
leases Service level agreement (SLA’s)
Matters to consider (Pre Conversion)
Committees- Members- Directors/Trustees- Governors- Finance- Audit
* Governors skills Audit
Financial Procedures Manual Scheme of delegation/limits Register of interests (including family members) Appointment of auditors Appointment of Responsible Officer (RO)/Internal
Assurance Appointment of Bankers Appointment of Lawyers Policies - Fixed assets/Anti Fraud/Risk
Assessment/Whistle Blowing etc
Matters to consider (Pre Conversion)
Matters to consider (Pre Conversion)
Accounting system- PS Financials
- Corero- Sage- Agresso-Capita Sims- Hoge 100
* Nominal Leger structure
Matters to consider (Pre/Post Conversion)
* Management accounts- Income and expenditure account- Balance sheet- Cashflow forecast- Restricted v unrestricted funds
* VAT (Section 33B)- S126- Register for VAT
Matters to consider (Post Conversion)
PayrollCalculation of various deductions including
- PAYE/NI deductions- Calculation of various deductions including
- Teachers Pension Scheme- LGPS Pension Scheme- Union subscriptions- Dispensations / PIID’s- Payment of the above and net pay
The various returns
EFA Returns- Budget forecast (By 31st July for following financial year)- Academy Accounts Return (AAR)- March return (1st year for some)- Financial Management and Governance self assessment (FMGS)
Audited financial statements to 31st August End of Year Certificate (EOYC) Companies House
- Directors appointments and resignations
- Annual return
Format of Year End Financial Statements
Model financial statements include:- *Trustees’ Report (C or T)- *Governance statement (C and AO)- Statement of regularity, propriety and compliance (AO)- Statement of trustees’ responsibilities (C)- Independent auditor’s report of the financial statements- Independent auditor’s report on regularity- Set of financial statements
- Statement of financial activities (SOFA)- Balance sheet (C or T)- Cashflow statement- Notes
Trustees’ Report
Method of recruitment of trustees Organisational structure Risk management Connected organisations Objects and Aims Achievement and Performance Reserves Policy Plans for future periods Amongst others
Governance Statement
Trustees – meeting attendance during the year FGPC – if appointed, meeting attendance
during the year Audit committee – if appointed, attendance
during the year Risks Description of interim internal checks Detail any material control issues
Income > £10m or Assets > £30m MUST have an audit committee
All MAT’s below this should CONSIDER having an audit committee
All others MAY have an audit committee Up to the Academy to identify risks and
agree a programme of work to address
Interim Internal Reviews Requirements
Can be undertaken by one or combination of the following
Internal Audit (In house or brought in) Supplementary programme of work for the external
auditor Responsible officer Peer Review
Interim Internal Reviews
Undertake a Governor skills Audit Consider Governance structure Consider internal resource Research and plan the implementation of an
appropriate accounting package Review MIS requirements Take advice – VAT, Gift Aid and potentially
Corporation Tax Prepare an outline 3 and 5 year financial forecast Set appropriate level of reserves Have costed ideas for capital projects
Top Tips
Further information
Academies Accounts Direction 2013 Academies Financial Handbook EFA website EFA Bulletins Charity Commission website Your Advisers
Any Questions?