From Evolution LLP
With academies subject to ever increasing scrutiny and reporting requirements, it is more important than ever that appropriate procedures are in place to mitigate the risks of fraud, error and non-compliance with legislation. It is also important that governors and management have accurate and relevant information to enable them to monitor finances and take effective decisions.
Here are some of Evolution’s tips to help new and established academies:
- Ensure that you have appropriate finance policies in place and that they are reviewed by governors and management on a regular basis. This should include not only your finance policy, but also whistle-blowing and anti-fraud policies;
- Make sure that all staff are aware of the policies and the importance of complying with them;
- Ensure that duties are segregated where possible to reduce the risk of fraud;
- Ask your responsible officer or internal assurance service to assess financial controls and ensure that governors actively engage with the provider of this role so that they cover any areas of concern;
- Have a detailed risk policy and register that is reviewed regularly. Ensure that key risks are addressed and monitored and appropriate plans put in place to mitigate risks as far as possible;
- Ensure that realistic budgets are properly approved by the governing body prior to submission to the EFA;
- Prepare and report accurate and timely management accounts on an accruals basis, including supplementary information such as key performance indicators, rolling cash flow projections and a forecast of the year end position;
- Monitor budgets and financial performance by comparing actual and budgeted financial results and investigating significant variances;
- Speak to your auditors and other advisers regularly to take appropriate advice on matters such as how to deal with unusual accounting transactions, the appropriateness of controls and policies and the implications of any new activities being undertaken by the academy;
- Subscribe to EFA bulletins and plan/take action where appropriate.
This is not an exhaustive list by any means, but we hope you find it useful and that it will help you self-assess the effectiveness of procedures that you have in place. If you would like to discuss any of the points raised, please speak to any of Evolution’s Education Services Team.
Graham Fitzgerald: Director and Head of Education Services, graham.fitzgerald@evolutionllp.com, 01642 221331, www.evolutionllp.com