Academies Accounts Direction 2019/20

As the sector steadily moves toward the 31 August reporting date, the Education and Skills Funding Agency (ESFA) have now released the Academies Accounts Direction 2019/20.

We have summarised the key changes below.

Governance statement

Academy trusts should describe how internal scrutiny arrangements are affected by the requirements of the revised Financial Reporting Council‘s Ethical Standard. This states that a firm providing external audit to an entity shall not also provide internal audit services to it.

Where trustees have considered the Department for Education’s governance handbook and competency framework for governance, they are encouraged to include a statement to that effect.


Instances of irregularity, impropriety or non-compliance noted in the accounting officer’s statement on regularity, propriety, and compliance, and in the reporting accountant’s report on regularity should state the relevant monetary amounts, if known.

For the period in the run-up to a trust closure, the accounting officer is required to sign off the regularity statement.

Disclosures in the financial statements

  • Within the charitable activities note, the academy must identify and disclose legal costs.
  • A reconciliation of net debt must now be included as a note to the statement of cash flows.
  • The Teacher’s Pension Scheme note must reflect the latest actuarial valuation.

Trustees’ report for large academy trusts

This must include a statement describing how the trustees have promoted the success of the company under Section 172(1) of the Companies Act 2006.

In addition trustees are required to publish certain information relating to energy and carbon reporting. This includes measurement of the trusts’ UK energy use, an emission intensity ratio and details of the action taken to improve energy efficiency in the reporting period.

The report must now disclose how trustees have had regard to the need to foster business relationships with suppliers, customers and others. As well as the effect of that regard, including on the principal decisions taken during the reporting period.

Academy trusts with more than 250 employees must disclose how the trustees have engaged with employees. Including how they have had regard to employee interests, and the effect that this has had, including on the principal decisions taken by the company during the reporting period.

Read the full AAD 2019/2020

At MHA Carpenter Box we can assist with the preparation of statutory accounts for academy trusts of all sizes. If you would like to discuss anything further please get in touch with a member of our Academies team on 01903 234094.