The Academies Accounts Direction (the Direction) 2024 to 2025 has now been published. In addition to the Direction, updated versions of the Academies Model Accounts 2024 to 2025 and the Auditor Framework and Guide are also available.
The Direction outlines requirements for Academy Trusts preparing their annual report and financial statements for accounting periods ending on 31 August 2025. As the requirements in the Direction are mandatory, it is an essential reporting document for all those involved in the preparation of the annual report and financial statements.
Changes to the Academies Accounts Direction
Each year the Direction includes some changes; these can differ in substance from completely new obligations to the clarification of existing responsibilities. This year’s changes are minimal, the intention being to make expectations more consistent and clearer, as opposed to introducing new requirements.
Here are the key updates to note:
- Alerted Academy Trusts to the Companies Act 2006 requirement for the inclusion of a non-financial and sustainability information statement within the strategic report. This requirement applies if the Academy Trust’s turnover in the year was more than £500 million and the Academy Trust had 500 or more employees. (paragraph 2.13)
- Reflected the freedom, which allows Academy Trusts to take out certain finance leases. Academy Trusts have delegated authority to enter into categories of finance lease that appear on the DfE approved list. (paragraph 2.137)
- Provided relevant disclosures, within the financial statements, where an Academy Trust is a lessee under a finance lease. For ease of reference, the content relating to finance leases is highlighted in yellow and is also preceded by the symbol*. (paragraph 3.128)
Changes to the Academies Model Accounts
The Model Accounts help Academy Trusts see what the accounts should look like and have the same contractual status as the Direction.
As with the Direction, changes this year have been kept to a minimum.
Here are the key updates to note:
- Content included to reflect the Academy Trust Handbook 2024 requirement on how trusts, with an annual income over £50 million, should deliver internal scrutiny.
- Reviewed the wording in the accounting officer’s statement of regularity, propriety, and compliance to make the statement clearer.
- Updated the wording of the auditor’s report on the financial statements and the reporting accountant’s report on regularity, to reflect the review of the Framework and Guide for Academy Trust External Auditors and Reporting Accountants.
- Updated note 32, valuation of teacher’s pension fund, to reflect the implementation date for the next valuation.
- Reflected the transfer of Education and Skills Funding Agency (ESFA) functions to the Department for Education (DfE).
Auditor Framework and Guide
The separate Auditor Framework and Guide has had a significant refresh this year, with re-ordered paragraphs, redrafted content, and new annexes. These guides are primarily aimed at external auditors and reporting accountants, but they may also be of interest to Accounting Officers, Chief Financial Officers and Trustees.
The complete Academies Accounts Direction 2024 to 2025 can be downloaded here.
How M+A Partners can help
We are here to support you in understanding the guidance within the Academies Accounts Direction and to ensure your compliance with all current requirements.
Should you have any queries regarding the requirements and specific guidance for preparing the annual report and financial statements, please get in touch with us using the details below.
