Annal Nayyar blogs and reports on The Education Funding Agency (EFA) has released its annual Academies Accounts Direction (AAD) which covers the accounting period 2013-14.

The Academies Accounts Direction 2013 to 2014 is a reference pack for academy trusts

to use when preparing their annual reports and financial statements for accounting

periods ending on 31 August 2014. It also supports auditors with their audit of the

financial statements.

The Accounts Direction is published by the Education Funding Agency (EFA) as the

agent of the Secretary of State for Education. The Department for Education (DfE) has

ultimate responsibility and accountability for the financial framework for academy trusts,

which it describes in the Academies Financial Handbook. The Accounts Direction

supplements the handbook and has the same status as the handbook in that it derives

from requirements set out in academy trusts’ funding agreements with the Secretary of


The requirements for academy trusts are to:

 prepare an annual report and financial statements (sometimes referred to in

this document as ‘accounts’) to 31 August 2014, unless the trust is extending

its first accounting period to 31 August 2015 under section 1.4.5 of the

Accounts Direction;

 have these accounts audited by an independent auditor;

 submit the audited accounts to EFA by 31 December 2014;

 file the accounts with the Companies Registrar as required under the

Companies Act 2006;

 arrange an independent review of regularity and include a reporting

accountant’s report on regularity as part of the accounts.

The Accounts Direction helps academy trusts by explaining the elements to be included

in the accounts and the accounting treatments required. It also provides a model format

for the accounts to aid consistency of treatment between academy trusts.

Action for new academy trusts by 30 September 2014

New academy trusts, including free schools, studio schools and university technical

colleges, that have been incorporated by 31 August 2014 should review carefully whether

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