Academy trusts must submit their audited accounts and auditor’s management letter to the Education Funding Agency (EFA) for the accounting period ending 31 August 2014 by 31 December 2014.
The accounts directive has been updated and now includes the following:
Note 28 on pensions and similar obligations to include enhanced disclosures reflecting the latest valuation of the Teachers' Pension Scheme (TPS)
guidance on submitting academy trusts' financial statements, along with a short online form, to the Education Funding Agency (EFA).
The following has been extracted from the guidance relating to Note 28:
Academy trusts that have already approved their financial statements: It is for each board of trustees to decide whether to amend their financial statements and enhance their disclosures in note 28. EFA has published this addendum to provide trusts with the opportunity to enhance this note if it is practical and feasible for them to do so. Where the accounting officer and chair of the board of trustees have signed off the audited financial statements, but the independent auditor sign-off has yet to happen, trusts are encouraged to update note 28 while informing their auditors of the change. This should not result in any additional audit work or testing by the auditor.
Are academy trusts’ financial statements misleading without this text? Trusts’ financial statements that do not include the latest wording under note 28 will not be misleading. Note 28, insofar as it relates to the TPS, does not affect any balances in the financial statements, is not material by value or nature, and the pension liabilities are not allocated to specific employers. The original wording identifies the valuation report in summer 2014, but without any detail. EFA has published this addendum to provide trusts with the opportunity to enhance their disclosures. The use of notes in financial statements is intended to provide more information to potential users of financial statements: the amended note 28 does so by reflecting the latest TPS valuation and the future impact on academy trusts as employers.