Reflections on the 2024 Academy Reporting Season and Top Tips for 2025

With the 2024 academy reporting season behind us, we can now look to make the process for 2025 as efficient as possible.

Reflecting on the 2024 season, it felt relatively uneventful. With Covid funding and debates about inflation rates to use in pension calculations all firmly in the past, there were no significant Academies Accounts Direction (AAD) reporting changes to deal with and in the area of related party transactions, the regulation was even less onerous than in previous years. A few more potential pension surpluses arose, with many Trusts opting to continue to take the cautious approach of non-recognition. In our experience, the focus was on expediting the accounts process and improving efficiencies, particularly through driving further benefits of use of the standard Education and Skills Funding Agency (ESFA) chart of accounts.

Looking forward to the 2025 reporting season, there are a few key areas to consider that can improve the process and ensure compliance.

5 top planning tips for the 2025 academy reporting season

1. Review your internal audit plan

   Ensure your audit plan for the remainder of the year is comprehensive, aligns with the Trust’s risk assessment programme, and covers both financial and non-financial aspects. This preparation will help you demonstrate to your auditor and the ESFA (DfE from March 2025) that the Academy Handbook has been followed.

2. Complete accounts for new schools when they join the Trust.

   This includes reviewing property lease arrangements and where relevant commissioning external property valuations. As well as this the inventory lists for other assets can be reviewed or compiled, applying an estimate of carrying values where relevant. It is also worth looking for any unusual school funds that accompany the new school that aren’t accounted for within the surplus/deficit transferred from the local authority or the predecessor Trust. Have an awareness of any income streams, received for the current year, which are being transferred as part of bank balances to ensure these are accounted as income. In August, it’s important to request all necessary LGPS pension information for the new school that you will need for the disclosures around schools being transferred in - (consider asking your auditor for assistance). This proactive approach may save time and cost later in requisitioning new information.

3. Proactive audit processes

   Agree on regularity transactions with your auditor before they occur. For example, if you have a major procurement or employee settlement, share the process you have been through to ensure value for money and compliance with the Academy Handbook with your auditor before finalising the transaction. This will help avoid regularity audit issues being highlighted in October.

4. Website compliance

   Keep your website up to date in accordance with the handbook, including trustee declarations of interests and governance details. Regular reviews will prevent it from becoming non-compliant.

5. Summer testing

   To ease the burden on your finance team, ask your auditor to perform audit testing during the summer. Systems and processes testing, as well as transaction and regularity testing, can be done before the year-end, reducing the workload burden in October.

Cash balances

Despite funding pressures and tight accounting balances, many academies have high cash balances at certain times of the year due to the academy funding cycle. While ensuring sufficient liquidity is essential, it is equally important to make the best use of academy assets, including cash balances. Returns are currently better than they were pre-pandemic, so effective management of these funds is crucial.

By following these tips, you can make the 2025 reporting season smoother and more efficient, ensuring compliance and demonstrating robust financial management.