Academies Accounts direction 2019 to 2020 (AAD)

The AAD has just been published for the period ending 31 August 2020. The document is now a whopping 169 pages long, and this is without any of the additional COVID-19 guidance that we are expecting in an additional AAD to be published later this month. 

Whilst there has not been a major rewrite of the underlying key accounting standards, such as Financial Reporting standard (FRS) 102 or the Charities Statement of Recommended Practice (SORP), as ever there are some changes specific to the academy sector. 

Some of the key changes are in the trustees’ report. There are additional disclosures around:
•    Employee engagement
•    Business relationships
•    Energy and carbon reporting

Additional disclosures elsewhere in the financial statements include:
•    Relevant monetary amounts in the Accounting Officer statement and the regularity audit opinion
•    Reference to the new Financial Reporting Council Ethical Standard 
•    Reference to the ESFA’s checklist to help trusts prepare for external audit  
•    Identification of legal costs
•    A statement if trustees have taken account of the guidance in the Governance Handbook and the Competency Framework for Governance

There are some additional technical accounting disclosures required:
•    An analysis of changes in net debt
•    An example funds note for trusts that are GAG pooling or have academies with a zero balance on funds
•    Accounting for a subsidiary as a merger
•    Consideration of when a subsidiary is material
•    Updates to the teachers’ pension scheme note

If you have any questions arising form your review of the AAD please email us at academies@bishopfleming.co.uk