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 Format of Year End Financial Statements Interim Internal Reviews Top Tips Further information Questions
What is an Academy? Company limited by Guarantee Members Directors/Trustees Governors Exempt charity – Registered with EFA
Is an Academy ‘free’ Of Local Authority control – YES Of Whitehall – NO - EFA/DFE/Treasury/NAO
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)
Matters to consider (Pre Conversion) Committees - Members - Directors/Trustees - Governors - Finance - Audit * Governors skills Audit
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
Matters to consider (Pre Conversion) Accounting system - PS Financials - Corero - Sage - Agresso -Capita Sims - Hoge 100 * Nominal Leger structure
Matters to consider (Pre/Post Conversion) * Management accounts - Income and expenditure account Balance sheet Cashflow forecast Restricted v unrestricted funds * VAT (Section 33 B) - S 126 - Register for VAT
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
The various returns EFA Returns - Budget forecast (By 31 st July for following financial year) - Academy Accounts Return (AAR) - March return (1 st year for some) - Financial Management and Governance self assessment (FMGS) Audited financial statements to 31 st August End of Year Certificate (EOYC) Companies House - Directors appointments and resignations - Annual return
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
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
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
Interim Internal Reviews Requirements Income > £ 10 m or Assets > £ 30 m 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
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
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
Further information Academies Accounts Direction 2013 Academies Financial Handbook EFA website EFA Bulletins Charity Commission website Your Advisers
Any Questions?
Contact details Tel: 01325 349 700 Email – chris. beaumont@cliveowen. com www. cliveowen. com
Скачать презентацию What you need to know about the difference
d44b10e08ac75afd4ddf04c3523e77f7.ppt