1 / 20

Chris Beaumont Partner – Clive Owen & Co LLP

What you need to know about the difference between accounting requirements pre and post Academy conversion. Chris Beaumont Partner – Clive Owen & Co LLP. Agenda. What is an Academy Is an Academy free Matters to consider Pre/Post conversion The various returns

brownruby
Download Presentation

Chris Beaumont Partner – Clive Owen & Co LLP

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. What you need to know about the difference between accounting requirements pre and post Academy conversion Chris Beaumont Partner – Clive Owen & Co LLP

  2. Agenda • What is an Academy • Is an Academy free • Matters to consider Pre/Post conversion • The various returns • Format of Year End Financial Statements • Interim Internal Reviews • Top Tips • Further information • Questions

  3. What is an Academy? • Company limited by Guarantee • Members • Directors/Trustees • Governors • Exempt charity – Registered with EFA

  4. Is an Academy ‘free’ • Of Local Authority control – YES • Of Whitehall – NO - EFA/DFE/Treasury/NAO

  5. Matters to consider (Pre Conversion) • Articles and memorandum • Land transfer – 125 year lease • LGPS Valuation • Insurance • Transfer of agreements e.g. photocopier leases • Service level agreement (SLA’s)

  6. Matters to consider (Pre Conversion) • Committees - Members - Directors/Trustees - Governors - Finance - Audit • Governors skills Audit

  7. Matters to consider (Pre Conversion) • Financial Procedures Manual • Scheme of delegation/limits • Register of interests (including family members) • Appointment of auditors • Appointment of Responsible Officer (RO)/Internal Assurance • Appointment of Bankers • Appointment of Lawyers • Policies - Fixed assets/Anti Fraud/Risk Assessment/Whistle Blowing etc

  8. Matters to consider (Pre Conversion) • Accounting system - PS Financials - Corero - Sage - Agresso -Capita Sims - Hoge 100 • Nominal Leger structure

  9. Matters to consider (Pre/Post Conversion) • Management accounts • Income and expenditure account • Balance sheet • Cashflow forecast • Restricted v unrestricted funds • VAT (Section 33B) • S126 • Register for VAT

  10. Matters to consider (Post Conversion) • Payroll Calculation of various deductions including - PAYE/NI deductions - Calculation of various deductions including - Teachers Pension Scheme - LGPS Pension Scheme - Union subscriptions - Dispensations / PIID’s - Payment of the above and net pay

  11. The various returns • EFA Returns - Budget forecast (By 31st July for following financial year) - Academy Accounts Return (AAR) - March return (1st year for some) - Financial Management and Governance self assessment (FMGS) • Audited financial statements to 31st August • End of Year Certificate (EOYC) • Companies House - Directors appointments and resignations - Annual return

  12. Format of Year End Financial Statements • Model financial statements include: • *Trustees’ Report (C or T) • *Governance statement (C and AO) • Statement of regularity, propriety and compliance (AO) • Statement of trustees’ responsibilities (C) • Independent auditor’s report of the financial statements • Independent auditor’s report on regularity • Set of financial statements • Statement of financial activities (SOFA) • Balance sheet (C or T) • Cashflow statement • Notes

  13. Trustees’ Report • Method of recruitment of trustees • Organisational structure • Risk management • Connected organisations • Objects and Aims • Achievement and Performance • Reserves Policy • Plans for future periods • Amongst others

  14. Governance Statement • Trustees – meeting attendance during the year • FGPC – if appointed, meeting attendance during the year • Audit committee – if appointed, attendance during the year • Risks • Description of interim internal checks • Detail any material control issues

  15. Interim Internal Reviews Requirements • Income > £10m or Assets > £30m MUST have an audit committee • All MAT’s below this should CONSIDER having an audit committee • All others MAY have an audit committee • Up to the Academy to identify risks and agree a programme of work to address

  16. Interim Internal Reviews Can be undertaken by one or combination of the following • Internal Audit (In house or brought in) • Supplementary programme of work for the external auditor • Responsible officer • Peer Review

  17. Top Tips • Undertake a Governor skills Audit • Consider Governance structure • Consider internal resource • Research and plan the implementation of an appropriate accounting package • Review MIS requirements • Take advice – VAT, Gift Aid and potentially Corporation Tax • Prepare an outline 3 and 5 year financial forecast • Set appropriate level of reserves • Have costed ideas for capital projects

  18. Further information • Academies Accounts Direction 2013 • Academies Financial Handbook • EFA website • EFA Bulletins • Charity Commission website • Your Advisers

  19. Any Questions?

  20. Contact details • Tel: 01325 349 700 • Email – chris.beaumont@cliveowen.com • www.cliveowen.com

More Related