The ESFA has recently refreshed its guidance on internal scrutiny within academy trusts, making it an opportune moment for those who haven’t revisited this guidance lately to brush up on its requirements.
This guidance targets trustees, audit and risk committees, accounting officers, chief financial officers (CFOs), and individuals involved in internal scrutiny within, or on behalf of, academy trusts.
The updated guidance offers expanded directives for those tasked with setting the program of work, elucidating its connection to risk management and delineating the scope of internal scrutiny.
While financial control systems are typically central to any internal scrutiny program, encompassing evaluation and testing of controls through transaction sampling, the guidance suggests broader areas for consideration:
- Financial governance and oversight
- Financial efficiency
- Strategic financial planning
- IT systems
- Cybersecurity
- Health and safety, and estate management
- Organisational culture
- Management information
- Anti-fraud measures
- Safeguarding
- HR systems
- Succession planning
A common query pertains to the frequency of internal scrutiny visits. Although the Academy Trust Handbook doesn’t prescribe a specific frequency, the guidance addresses this issue. The timing and frequency of visits should allow for adequate coverage relative to the trust’s size and complexity, considering prior issues, external audit findings, unique context, and other assurance sources commissioned by the trust.
Factors like changes in senior management or the expansion of a multi-academy trust may also influence the program of work.
Visits should coincide with audit and risk committee meetings to discuss interim findings. Consequently, it’s more suitable for visits to be evenly distributed throughout the year rather than conducted in a concentrated block.
At Xeinadin, we’re equipped to assist your trust in complying with this crucial aspect of the ATH. Many of our offices offer a range of internal scrutiny topics, as listed above, which we can tailor into a visitation program.
For further details, please reach out to a member of our team using the form below.
