This update considers the impact of the COVID-19 (coronavirus) and government measures on the financial statements of schools for 2020.
This has been a challenging year for schools as they have responded to the raft of measures introduced by the Government to contain the spread of the virus. Although schools have now re-opened, there remains the challenge of operating safely within a socially distanced society and the risk of further restrictions and measures being re-introduced as the Government seeks to bring the current outbreak under control
All of these developments and measures have had and are likely to continue to have a range of implications for schools. It is important that carrying values of assets are reconsidered and grants received through the CJRS are properly accounted for. In particular the Trustees report and notes to the accounts need to carefully consider and explain the going concern status of the school.
This guide will aid Bursars and Governors when reporting on the school’s activities and financial position.
The key areas of focus of this update are as follows:
The key message is that management and Governors will need to carefully consider the impact of coronavirus on the school’s Trustees’ report and financial statements to ensure that these continue to reflect the financial activities and position of the school in accordance with the Charities SORP.