At Kreston Reeves we understand the issues facing clients in the education sector. Our specialist team is dedicated to advising private and public education sector clients, including academies.
Members of our specialist team include partners and staff who are governors and charity trustees in their own right. Their personal experience and professional expertise will help guide you through the regulations without fuss.
Private and public education
With many educational establishments facing similar financial issues, our clients benefit from our experience in advising others. For example, one major expenditure borne by educational institutions is that of wages, salaries and, increasingly, pensions: an effective framework of financial systems and controls is vital in each of these areas.
As registered auditors we act as both internal and external auditors for independent schools and academies under the guidelines set by the Secretary of State, Department for Education and Education Funding Agency.
The introduction of academy status provides the school management team with the opportunity to take greater control over finances. This additional responsibility requires support from qualified professionals.
Our experience working with schools converting to academy status supports and informs those considering making the change. Insights include specialist advice on fundraising, payroll, internal and external audit, VAT and the tax issues typically facing academies.
Helping throughout the academy conversion process
Uncertain about the regulations and the environment you are entering? Our team will be able to offer you personal and practical guidance.
Your new financial and governance obligations may prove unfamiliar to you. Whether it’s guiding people on their new responsibilities, advising on regulatory matters, or providing accounting, audit (both external and internal) and VAT advice, you can rely on our help to comply.
For good governance, you will be regularly reviewing your audit provision. Further change brings new challenges, and you may want advice to improve the effectiveness of your finance and back-office functions; potential or planned expansion; and developing or building properties.
Academies Benchmark Report 2018
Our Academies Benchmark Report 2018 is based on those Academies that prepared financial statements for the period ended 31 August 2017 and which were audited by member firms of Kreston UK.
Key highlights from the report include:
- Centralised multi academy trusts (MATs) perform significantly better, typically generating surpluses. They are better able to negotiate MAT wide supplier contracts, have greater ability to generate additional income, and appear better at negotiating settlements from the Education and Skills Funding Agency (ESFA) and from local authorities
- 55% of academies recorded a deficit in the last fiscal year
- Trusts continue to struggle to generate additional income, in part because of a lack of investment in trusts' estate facilities
- As negotiations with ESFA and local authorities take on increased importance, trusts are seeking better qualified chief financial officers and with increased salary costs to match. The role of the CFO/Business Manager continues to evolve from pre-academy days
- Trusts are having to offer teaching posts at more senior levels with greater Teaching and Learning Responsibilities to attract staff. This may leave trusts with a pool of staff that may well be over-qualified for the role and again with salaries to match
To request your complimentary copy of the Report, please click here.