Academy Update November 2024

The ESFA have recently updated their good practice guide on academy trust management accounting. This guide provides best practices for finance professionals in academy trusts, particularly CFOs and finance managers. It focuses on preparing and presenting management accounts that align with the Academy Trust Handbook (ATH) requirements. Key points include:

Importance of Management Accounts: These are crucial for understanding the trust's financial health, making informed decisions, and ensuring compliance with the ATH
Key Components: Management accounts should include income and expenditure accounts, variance reports, cash flow forecasts, and balance sheets
Data Reconciliation: Before preparing accounts, reconcile bank accounts, VAT, payroll and fixed assets
Format and Content: Accounts should be clear, concise, and tailored to the audience. Include commentary on significant variances and potential risks
Sharing and Review: Share accounts with the trust chair, finance committee, and board members. The board should review accounts to ensure financial viability
Automation: Utilise financial software to automate the process and reduce manual effort

By following these guidelines, academy trusts can improve their financial management and decision-making processes.

Please use the link below for access to the full document.