The Department for Education has published revised accounting guidelines for academy schools which will affect annual reports and financial statements to year end 31 August 2012.

The Academies Accounts Direction is a reference pack for academy trusts and their auditors to be used for preparing and auditing annual reports and financial statements for 2011/12.

The requirements for those academy trusts in scope to produce 2011/12 annual reports and financial statements include:

1. prepare an annual report and financial statements to 31 August 2012;

2. have these accounts audited annually by independent registered auditors;

3. submit the audited accounts to the Secretary of State via the EFA by 31 December 2012; and

4. file the accounts with the Companies Registrar as required under the Companies Act 2006.

There is guidance on the elements to be included in academy school annual reports and financial statements and the accounting treatments required. It also provides a model format for the report and the financial statements and ensures consistency of treatment between academy trusts.

The 2011/12 pack introduces developments in the accountability and audit framework for academy trusts, which move closer towards greater simplification and autonomy, easing the administrative burden, in addition to a refresh of financial reporting requirements.

Key changes to audit requirements include the replacement of the statement on internal control with a governance statement that provides information on the governance structure of the academy trust; and the introduction of a statement on regularity, propriety and compliance which is an important new element of the assurance framework for academies, and requires academy trusts' accounting officers to confirm formally that their responsibilities for ensuring the regular and proper use of the academy trust's funds have been delivered.

At the same time, there is also a new requirement for an enhanced audit opinion covering regularity.

The Education Funding Agency (EFA) plans to run a series of events this autumn for academy trusts and their auditors to support the introduction of the new rules.

The Academies Accounts Direction documentation and FAQs can be downloaded from the EFA.