SWALSS – Academy status - financial risks and opportunities Smart decisions. Lasting value. SWALSS – Academy status - financial risks and opportunities January, 2017 Guy Biggin, Partner (Non-profits) © 2016 Crowe Clark Whitehill LLP
Academy conversion – risks and opportunities Autonomy Government funding – access to grants - GAG, Devolved Formula Grant, Capital Improvement Fund, Rates Grant - but limited funds available Academy Financial Handbook, Accounts Direction Budget accountability Governors / Trustees
Being a governor of an academy Being a governor – financial responsibilities Key controls Types of assurance Risk based assurance
Being a governor – setting the scene Schedule of financial requirements Financial oversight Financial planning Internal control Financial monitoring and management Proper and regular use of funds Audit requirements
Types of assurance External audit Internal audit Responsible officer Extended external audit assurance Management / management information
Linking strategy to risk management
Being a MAT – the (financial) opportunities Scheme of delegation - communication Economies of scale – more funds for education Internal controls – documented Carry foreword
How do you structure a Multi Academy Trust Primary, Secondary or combination of both? Centralised Centralised finance department rather than at individual schools Hub Structure Centralised treasury department Devolved finance (limited) Potentially well suited to MATs with multiple locations Cluster Structure Devolved finance department at schools Contribution to trusts running costs Common when constituent academies are involved for procurement
Key features
Advantages
Disadvantages
Growing the group Scaling up infrastructure Finance teams, HR support, IT services etc. Due diligence process Robustness, key areas property, liabilities, pension obligations, private accounts, PFI Staffing Rationalisation and harmonising T&Cs
Thank you Guy Biggin, Partner Phone +44 (0)1242 234421 guy.biggin@crowecw.co.uk www.croweclarkwhitehill.co.uk