academies accounts direction 2014-2015


The EFA released the 2014/2015 'Academies Accounts Direction' on 12 June.

A new SORP was issued by the Charity Commission, for periods commencing on or after 1 January 2015- therefore, two versions of the accounts direction have been published. Those academies which were already open on 1 January use the 'old' SORP and Academies Accounts Direction 2014 to 2015 (SORP 2005).

Academy trusts whose date of incorporation falls on or after 1 January 2015 must use the Academies Accounts Direction 2014 to 2015 (SORP 2015)

Early adoption of SORP 2015 is not permitted.

The Accounts Direction clarifies a number of issues that have arisen in the past, i.e. grants and income classification, and disclosure requirements. There are also a number of changes - these include:

  • Auditors should inform the NAO and EFA if they are issuing a qualified audit report or a modified regularity report to the academy trust, after discussing this with the trustees 
  • The method of submitting the accounts and auditor’s management letter to EFA should be through Document Exchange
  • The requirement for a separate VFM statement is withdrawn, however the governance statement includes a new section on VFM
  • Individual disclosure of non-contractual severance payments should now be made on an individual basis regardless of value
  • There is a new section on disclosure of 'connected charities'
  • Further guidance on church buildings disclosure - looking at the substance of the agreement rather than the legal form
  • A new section on accounting for academy combinations and dissolutions
  • A new section on accounting for agency arrangements
  • A new section on accounting for risk protection arrangements.

Further information can be found online.