Academies Financial Handbook

The Academies Financial Handbook 2020 has now been released. It takes effect from 1st September 2020 and so Trusts should make themselves aware of the changes now, so that they can be actioned for the 1st September.

The new handbook can be found here. You should ensure that if you have responsibility for managing or governing an academy trust you should read it. As a minimum members, chair, other trustees and other governors, Accounting Officer, Chief Financial Officer and Clerk should read it.

There are a number of changes in the Handbook, too many for me to mention in full so I will just discuss a few of the key ones:

• Members must not also be employees – this change will take effect from March 2021, so if you have members who are staff members you have a period of time to address this. [1.8]
• There is a clarification that the register of interests must be kept up to date. We would encourage you to treat this as a live document, and it must not be treated as an annual exercise. [5.46]
• A fixed asset register must be maintained [2.7]
• Pupil number projections underpin school budgets, and so these must be reviewed termly [2.12]
• From September 2020 Trusts will need to publish on their website the number of employees whose remuneration is over £100,000. This will be in bands of £10,000, the same as in the annual accounts. [2.32]
• An update on the rules around alcohol, confirming that alcohol can be purchased for religious purposes only. [2.35]
• Updating the guidance for setting a budget, with the addition of recommending the board review termly the pupil number estimates used for budgets. Given pupil numbers underpin the budgets a small error can have a large effect. [2.11]
• Clarification the internal scrutiny includes both financial and non-financial controls. [3.1] If you would like more information on internal scrutiny please contact Alastair Campbell at acampbell@bishopfleming.co.uk 
• There is expanded and updated guidance for the audit and risk committee. We would strongly recommend that your Chair of your audit (or other relevant committee) be provided with this as a minimum. They will be required to produce an annual report of the committee’s conclusions on the work of the auditor, including recommendations for reappointment or dismissal of the auditor. [4.17]

There are some further changes in the Academies Financial Handbook – all changes are noted in the beginning of the document. 

Should you have any questions please do not hesitate to contact us on academies@bishopfleming.co.uk