Academy Advisor – Spring / Summer 2021
Welcome to the Spring / Summer 2021 edition of Academy Advisor
Covid- 19 has significantly impacted all areas of business and society, not least the education sector, affecting the operating environment of education providers, control environments and giving rise to new funding streams. This has resulted in more varied and more complex audit arrangements.
After the deadline to submit the 2019/20 financial statements was extended to 31 January 2021, 97.1% of trusts managed to meet the deadline, with nearly all having now submitted their accounts. Approximately 99% of accounts have unqualified audit opinions and the number of qualified opinions has continued to reduce.
Over 8% of trusts included a modified Reporting Accountant’s report on regularity, with the most common reasons related to: Internal financial reporting (23%), related party transactions (16%), no independent check of controls (11%), procurement and tendering (6%) and alcohol (4%). In addition, Covid-19 issues accounted for 10%.
As we look forward to the upcoming audit season, it is worth reflecting on last year’s audit and any identified efficiencies or improvements highlighted in the Audit Findings Report /management letter, to make sure there is a plan in place to address the audit findings over the coming year. The best way to ensure any problems in financial management are not flagged by auditors in the annual accounts for August 2021 is to allow sufficient time to resolve any issues at an early stage.
What’s inside this edition
- AAD – changes for 2021
- EU Workers
- IT & Cyber Risks
- Going Concern
- SATs v MATs
- National Funding Formula 2021-22
If you would like any further information on any of the topics raised, please contact Nicola Mason.
This update originally appeared on the MHA website.