An increasing number of academy schools in England are filing accounts with a qualified auditor’s report due to the difficulties governing bodies are having with rules on the disclosure of remuneration for trustees and governors, according to analysis by Wilkins Kennedy
The latest figures show 26 academy schools’ annual reports were qualified by auditors for the 2012/13 academic year, up from 16 the previous year. In many cases Wilkins Kennedy says it was the non-disclosure of pay which was highlighted.
The Grey Coat Hospital, Brighton Aldridge Community Academy, Bexley Business Academy and Darrick Wood School all had their finance reports qualified due to non-disclosure of trustees’ remuneration. One school also declined to disclose the numbers of staff paid above £60,000.
Although academies are not registered charities they have charitable status which therefore requires boards of trustees or governors, under charity accounting guidelines, to disclose any remuneration paid to trustees.
Michelle Wilkes, partner at Wilkins Kennedy, said: ‘This is a sticking point for some head teachers and other academy staff who are governors on the board on a purely voluntary basis. Their remuneration is entirely due to their employment within the academy and is not related to their role as an academy governor.
'They are clearly uncomfortable with their salaries being revealed to other staff, parents, students and the wider community.’
Wilkes warns that this is likely to become a more serious issue from September 2014 when the first performance-linked pay increases will come into effect, as rates of pay for teachers will become more contentious within schools.
‘It would be unfortunate if this new requirement puts staff off taking up a voluntary trustee role because they don’t want their salary becoming the topic of school gate gossip or used to score points politically,’ Wilkes said.
Separate research by UHY Hacker Young suggests that the increased responsibilities placed on governors at academy schools risk creating a recruitment crisis, with nearly a third of academy boards of governors already finding it harder to secure suitably qualified governors.
The firm also says its survey found many boards of governors now believe that specialist skills are needed to fulfil both their financial responsibilities, and the requirement that they hold the head teacher to account over the school’s academic performance.
Allan Hickie, partner and head of the national academies team at UHY Hacker Young said: ‘The vast majority of academies we have worked with have already given their governors training and support on their new financial responsibilities under charity law, but it is still an area that governors find very challenging.’
