Academy News is designed to give our clients and contacts in the sector short, topical updates along with details of our seminar programme on a bi monthly basis.

1. Academy
News
January 2013
Your first audit – how was it for you and how do you prepare for next year?
For schools who converted to academy status in 2011, • do you now have a sensible pro forma set of accounts,
the accounting period ended 31 August 2012 will have based on Coketown (the DFE pro forma) to use in the
been their first for which audited accounts are required. future. This will guide what disclosures and therefore
However, existing academies will also have been affected what information you need to collate throughout the year
by changes to the reporting and disclosure requirements • request details relating to LGPS pension disclosure before
introduced by the Accounts Direction 2011/12. the year end to give the actuaries sufficient time to provide
An academy trust’s accounts have to comply with the the details needed in the accounts
Companies Act 2006, the Charities SORP and the Accounts • agree your timetable with the auditors, especially
Direction, so their preparation can be quite daunting and assistance with drafting accounts, well before the end of
many academies look to the auditors for help especially the year and plan in the relevant meetings with the finance
in the early years. Academy business managers should committee and Governors
however bear in mind that the responsibility for the accounts • agree a plan to address issues arising from your first audit,
preparation rests with the academy and they need to plan to talking to your auditors and other school contacts to
obtain support from their advisers at an early stage. develop best practice
It is therefore important that you think about your audit
and the preparation of your accounts as soon as possible, A post audit debrief will help you improve your approach to
especially as the filing deadline with the DFE is relatively the year end and now is a good time to review how things
short, in fact by 31 December each year. Having had your went and what could be done to make the process more
first audit many of these issues will have been addressed but a efficient next year.
useful summary of key points is attached below:
• have you planned to involve Governors and the
Headteacher in drafting the Governors report, especially
to highlight your achievements and objectives
Does independence mean This has resulted in many Academies considering how
they can get the very best from independence whilst sharing
operating alone the burden of many back office functions and sometimes
The new found independence for many schools now teaching resource. This is largely being driven by wanting to
operating as Academies can be an invigorating and get the best value for money from the annual grants provided
inspiring status, a real driver for school improvement. by the EFA.
However it can also be daunting as there are suddenly Several structures have been implemented from the
many more new issues to contend with, statutory accounts most simple buying groups, through to clusters of schools
need producing and auditing, you have to submit VAT with no formal legal connection, umbrella trusts and multi
returns and produce four year forecasts among many other academy trusts (MATs). There are also many shared service
things. organisations offering back office support to academies.

2. The difficult decision is whether or not to become part buying consortia but a group of schools could for example
of a larger group and if so what are the key considerations? employ their own supply teachers reducing the cost per hour
Once the governors (and parents) have decided that no longer for this service.
being a stand alone academy is the best route forward the Opportunities for teachers – a group ethos means that
following should be considered:- teachers have the opportunity to develop their careers within
Governance – who will the governing body be? With an environment with which they are familiar. This can be a
several academies in one academy trust (a MAT), the role of strong draw when you are looking to recruit new teachers.
governors at an individual school is diminished, although it Links with business – to help your students, you may
will typically focus on the educational aspects of the school. wish to explore this area further. It is more likely that you
In Clusters, each governing body will still have the full range will be able to engage with business if they see that they are
of powers and responsibilities. This is the most challenging connecting with many schools at once, allowing them access
issue and the governors will determine whether a MAT, a to more pupils at the same time.
cluster or an umbrella trust is the preferred option. Legal Overall the decision will be driven by what additional
advice should be sought in this area before proceeding to value can be provided to the pupils, teachers and parents
make a final decision. from deciding to join or form a group of academies. You can
Financial system – if all schools use the same accounting retain your independence but you can also make savings in
system they can save on initial implementation costs, training both monetary and time terms by sharing with others. Only
and external audit costs. There is also cover for staff should time will tell which is the best option but every academy
there be absences. should at least consider what can be gained from working
Buying power – this can only work if true group with other academies locally or nationally, which would
procurement policies are developed and adhered to. In demonstrate good governance regardless of the final decision.
many ways these can be accessed through a range of existing
Steve Robinson
Partner, Head of Schools and Academies
T 01536 315966
E steve.robinson@uk.gt.com
London Seminar programme
Grant Thornton House
Melton Street Mastering Risk & Fraud London
This session will look at current developments in risk management and Thursday 31 January 2013
Euston Square recent fraud trends in the not for profit sector, and how you should be 3:30pm Registration
London NW1 2EP responding. 5:30pm Finish for drinks
T 020 7383 5100
Alternative Financing London
F 020 7383 4715 Across the sector, Trustees and management may want to take advantage of Tuesday 23 April 2013
a range of new platforms and approaches ranging across crowd-sourcing and 3:30pm Registration
RSVP retail bond issuance to joint ventures with commercial and social enterprises. 5:30pm Finish for drinks
We will explore what new forms of finance are proving attractive and why.
E katie.sirdifield@uk.gt.com
Tax/VAT/Employee Issues update London
Our tax seminar will provide an update on developments in direct taxes, Wednesday 22 May 2013
VAT and an update on employee issues as they affect the sector, as well as 3:30pm Registration
providing timely reminders on topical issues. 5:30pm Finish for drinks
© 2013 Grant Thornton UK LLP. All rights reserved.
Optimising Operations London
Optimising operations is not only good for an organisation from a cost Tuesday 12 November 2013
‘Grant Thornton’ means Grant Thornton UK LLP, perspective, but creates a controlled environment from which a whole 3:30pm Registration
a limited liability partnership. range of benefits can be delivered. Introducing a culture that continuously 5:30pm Finish for drinks
Grant Thornton UK LLP is a member firm within questions and challenges means that operations can be developed to drive
Grant Thornton International Ltd (‘Grant Thornton out waste, spread best practice and introduce efficiencies which can be
International’). Grant Thornton International and measured from both a financial and non-financial perspective.
the member firms are not a worldwide partnership.
Services are delivered by the member firms Tax/VAT/Employee Issues update London
independently. Our tax seminar will provide an update on developments in direct taxes, Thursday 5 December 2013
www.grant-thornton.co.uk VAT and an update on employee issues as they affect the sector, as well as 3:30pm Registration
providing timely reminders on topical issues. 5:30pm Finish for drinks
V22536