Academy Trusts – Management Accounts Reporting Requirements 2023

The revised edition of the Academies Trust Handbook (ATH) for the 2023/24 academic year was published by the ESFA on the 6th July, with a strong focus on simplification.

One of the areas simplified in this edition of the ATH is in relation to the production and distribution of management accounts. The update states that the ESFA are 'providing more discretion in the distribution of management accounts'.

However, the ESFA reported in its 2021/22 academy accounts assurance review that the top reason for regularity report modifications was attributed to internal financial reporting. Therefore, the largest reason for the modification in this category was in relation to management accounts issues, including accounts not being produced at all, not being shared with the Board, not being produced in a timely manner or not including all required information. In this article, we explore what is expected of academy trusts in this area.