Academies Accounts Direction 2023: summary of changes

The Academies Accounts Direction 2022 to 2023 (AAD) has recently been published alongside the model set of accounts for academy trusts, both documents of which are applicable to trusts for the period ending 31 August 2023.

There are no new requirements introduced in the AAD; the changes below provide clarification on existing requirements.

School buildings’ safety risk

The trustees’ report, and in particular the section on principal risks and uncertainty and the value for money statement, should cover estate safety and management.

The statement on regularity, propriety and compliance encompasses estate safety and management. The standard text within the model accounts has been updated to reflect this.

Material income streams

The academy trust is required to disclose all material income streams separately within the notes to the accounts. An example of this can be found within note 4 of the model accounts.

Concessionary loans

Whilst typical loans are not allowed by the Education & Skills Funding Agency (ESFA), certain types (e.g. Salix) are granted to trusts. The trust will need to consider if the loan granted is a concessionary loan – i.e. it has been granted to fulfil the charity’s (the trust’s) purposes where interest is charged below the market rate. If this is the case, additional disclosures are required – if you’re a BKL or Landau Baker client then we would be happy to provide further details.

Teaching assistants

Teaching assistants are classified as support staff within the staff costs note. This introduces conformity across the sector.

LPGS liability guarantee

For the past decade, there has been a Government guarantee in place confirming that the Department for Education would meet any local government pension scheme (LGPS) liabilities in the event of an academy closure. This has been reconfirmed recently and the standard text updated to reflect this:

‘The guarantee came into force on 18 July 2013 and on 21 July 2022, the Department for Education reaffirmed its commitment to the guarantee, with a parliamentary minute published on GOV.UK’

We are still waiting for ESFA to clarify how the new accounting standard for leases (IFRS 16 Leases) will be put in place within the sector.

For more information, please get in touch with your usual BKL or Landau Baker contact, or use our enquiry form.



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