We outline what the key changes are to the Academy Accounts Direction (AAD) 2021-22:
The sector is going through a phase of ‘consolidation’ - leading to heightened scrutiny over governance, reporting and management.
Trusts are under increasing pressure to be able to generate income and help support the financial position of the Trust - with trading subsidiaries helping to separate the core operation of the Trust and any other income generating activity.
The Government in currently investing in building programmes which aim to give greater capacity and will help move towards more energy efficient, sustainable buildings.
Other updates or clarifications of note are:
Overall, the changes to the AAD for the 2021-22 year have not been unexpected. They are reflective of the position that the sector is currently in, and reflective of where the focus of the ESFA is currently at. We also note that the ESFA does not intend to issue a further supplementary bulletin for 2021-22.
The financial statements for the year ended 31 August 2022 will therefore look very similar to that of the prior year in terms of presentation but expect continued challenge around the content of your Trustees Report and Governance Statement.
We will be exploring the trends noted above at our Academies Conference at Sixways, Worcester on 9 June 2022.
We will be joined by a range of guest speakers to discuss topical issues facing the sector and it would be great to see you there for our first face-to-face discussion group since the start of the pandemic. You can register for the event here.
If you require any further advice on any of the above, please contact Rebecca Crowther, or your usual Crowe contact.