The Academies Accounts Direction (AAD) for the 2020 year has been released by the Education and Skills Funding Agency (ESFA). This document sets out the Financial Reporting Requirements for Academy Trusts and includes the Coketown Model Accounts.
The document can be accessed on gov.uk. The main changes from last year’s AAD are listed on page 4.
Procuring Internal Scrutiny Services
There is a requirement to disclose how the FRCs new Ethical Standard has affected audit arrangements and this will be relevant for a significant number of trusts. Trusts will need to procure Internal Scrutiny Services if they are currently provided by their External Auditor. Xeinadin provides a full range of Internal Scrutiny to the Academy Sector – we would be delighted to discuss your needs.
It is clarified that instances of irregularity, impropriety or non-compliance noted in the accounting officers statement and the reporting accountants report should include monetary values where possible.
Response to COVID-19
A separate document detailing specific response to the COVID-19 situation has been released and can be accessed on gov.uk. This includes additional disclosure requirements as well as guidance on how certain activities may affect the regularity opinion.
Preparing for External Audit
The ESFA have updated their checklist for Trusts preparing for External Audit – this is also available at gov.uk.
Preparing well for the External Audit can make the process a lot smoother and ensure that key deadlines are met. This audit season will present challenges not faced before as the country opens up from lockdown. Good preparation will be key to ensuring an efficient audit process. At Xeinadin we pride ourselves on the use of the latest available technologies to deliver a modern and proactive audit service. By using cloud platforms to securely exchange information and to aid efficient two way communication we have been able to deliver a full service throughout lockdown.
How Xeinadin can help
Xeinadin’s academy experts provide a full range of financial and audit services to the academy sector. If you would like to discuss your audit needs with one of our academy experts then please contact us.