The Academies Accounts Direction 2024 to 2025 (AAD) has been released recently by the Department for Education (DfE). Available here on GOV.UK, it’s applicable to trusts for the period ending 31 August 2025.
The two main points
- Larger academy trusts may want to consider including a financial and sustainability information statement within their strategic report
- Under the Academy Trust Handbook 2024, academy trusts have delegated authority to enter into the categories of finance lease that appear on the DfE approved list
Key changes related to AAD
Whilst there have been minimal changes within the AAD, it’s worth knowing about certain changes to connected documents, legislation and structure surrounding the AAD:
Framework and guide for external auditors and reporting accountants
The DfE relies heavily on the work of external auditors and reporting accountants to obtain their necessary assurance of the financial reporting of academy trusts. The latest version of the framework has been fully redrafted to clarify and focus the expectations of the DfE on external auditors and reporting accountants, and to align with the other documents utilised annually with the preparation and audit of the annual accounts.
- A list of the other assurance activities which the DfE’s accounting officer relies on.
- Clauses for inclusion within the letter of engagement concerning both the audit and regularity engagements
- A review of the pre-agreed terms of engagement for regularity, to clarify responsibilities of the academy trusts
- Clarity on the reporting accountant’s discretion to report matters of impropriety
- Updating details of the types of tests which can be used to provide evidence for the reporting accountant’s regularity report
- Minor edits within the regularity report consistent with its limited assurance basis
Full lists of the above are detailed within the framework document as published by the DfE.
Whilst this document is specifically aimed at auditors, it’s important for both the accounting officers and trustees of academy trusts to be aware of the guidance and how it impacts their specific role(s) within their establishments.
Education and Skills Funding Agency closure
In March 2025, the Education and Skills Funding Agency (ESFA) formally closed. All of its functions have transferred to the Department of Education. We’ve summarised this governmental change here.
How BKL can help
Our specialist education sector team have more than 25 years’ experience of providing advice to over 100 schools and academies, including single academy trusts (SATs) and multi academy trusts (MATs) across the UK. We can help your trust to understand and meet your requirements related to the AAD.
Contact us today for a chat about how we can help you.