Finance
Better financial reporting for academy trusts
“By having a standard chart of accounts, we create the essential building blocks for the new system as it provides a consistent way of recording financial data for all academy trusts. This will allow us to reduce the burden on trusts through the electronic submission of financial data directly from finance systems and adding greater value to trusts by enabling us to create new financial efficiency tools as well as improve the timeliness and quality of the existing tools.”
How to use the chart of accounts Adopting the chart of accounts means using the ledger codes in the chart of accounts. The A new academies chart of accounts has been launched by academy’s cost centres do not need to change. the Department for Education as the first step to automated Academies can map their existing ledger codes but they will need to consider whether their financial reporting. Here’s what you need to know existing ledger code structure has enough detail for full automation, particularly balance sheet reporting in the accounts return. The Department for Education has launched will allow academies to compare their If the existing chart of accounts doesn’t a new academies chart of accounts as the finances with other similar academies have enough detail, the academy may first step to automated financial reporting. with greater confidence. Adopting the still need to enter data manually using The new academies chart of accounts will academies chart of accounts is voluntary. the accounts return online form. be used as the standard for financial data Lord Agnew, Parliamentary Under Secretary The balance sheet codes in the chart that underpins the academies accounts of State for the School System, said: “Our of accounts reflect the full range of DfE’s return and budget forecast returns. Adopting better financial reporting programme is a it will lead to significant future benefits great step forward in our work to improve fixed assets, investments and disposals. for trusts, with the Education and Skills efficiency in schools. We have recognised Most academy trusts will not need to use Funding Agency saying that approximately that the current system of submitting all of these. You can mark these inactive 65 per cent of the accounts return comes financial data to the in your finance system and activate them from data within a trial balance. Being department is time if you need them in the future. able to have that data pre-populated consuming and By using the chart of accounts, The will be extremely helpful to trusts. offers insufficient the DfE will be able to understand chart o It also means that the Department for benefit to your data and automatically match f accoun Education can provide more accurate academy it to the right part of the online t s will allow financial benchmarking information, which trusts. forms when it introduces E
to prov the DfE accurat ide more e benchmfinancial informaarking tion
Issue 24.3 | EDUCATION BUSINESS MAGAZINE
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