The ESFA has recently published an overview of its key findings from their 2022 to 2023 assurance programme. This programme included a review of academy trust financial statements, academy funding audits, financial management and governance reviews, the School Resource Management Self-Assessment Checklist and the Educational Recovery Grants. Below we have covered some of the key findings from the financial statement and financial management reviews.

Review of academy trust financial statements

In our experience it is relatively rare that an audit report on Academy Trust’s financial statements is modified. Our experience was reflected in the ESFA research which found that the percentage of qualified audit reports for 2021 to 2022 was 0.2% (2020 to 2021: 0.5%) and the reasons for these modifications was related to the Local Government Pension Scheme valuations and the accounting treatment of land and buildings.

However, the main reason for the emphasis of matter opinions (75% of all cases) was going concern because the trust had closed or proposed to close within the following 12 months. In this scenario a material uncertainty is to be expected because and auditor will be required to modify the opinion if the plan is to close a trust following a merger. The wording of this modification will explain that this is not indicative of a financial problem with the Trust.

Contact Us

If you wish to discuss this further, please use the contact one of our Education team members here at James Cowper Kreston. 

If you would like to arrange a virtual meeting to discuss your specific circumstances in relation to any of the above, please get in touch with your usual contact within James Cowper Kreston or contact me using the details below.

Alex Peal 

Joint Managing Partner

T: +44 (0)7771826264 | E: apeal@jamescowper.co.uk

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