05 October 2020
Governance
Governing schools in the immediate response to COVID-19 meant adapting quickly to new challenges. As schools have re-opened this autumn, governors and trustees continue working to provide rapid responses to a fast-moving situation.
In order to make the right decisions during this crisis period, you need to have the correct governance structure in place, otherwise you risk making the wrong decisions. It is essential that schools review the expertise brought by the governing body. For example, HR expertise should bring accurate up-to-date advice around the furlough scheme and the new government Job Support Scheme that is due to start 1 November 2020. (The availability of this scheme to the public sector is yet to be confirmed).
Other crucial governance skills would include expertise on health and safety matters. Governing bodies need to be in a position whereby they can quickly digest the ever-changing COVID guidance and respond rapidly to ensure the safety of students and staff.
Legal expertise would help the board to navigate through complex contracts during this time and advise on the application of PPN 02/20 and 04/20, both of which come with complications. It is crucial that the correct crisis decisions are being made by governing bodies. Their decisions will impact on the cashflow of the country and the government is relying on them to make the right decisions.
The Audit Committee
A fully functioning audit committee will challenge and review risk assessment processes during this crisis period. Such processes need to be reliable and robust enough to withstand the fast-changing landscape we are faced with. COVID-19 presents this sector with a number of new risks. Have risk registers been updated to address this? Have procedures been established to allow for risk assessment reviews at short notice?
Having audit expertise on the board will avoid any oversight in relation to internal audit during the pandemic. Internal auditors are in a unique position to help the academy sector as they adapt to new conditions. Internal auditors will help trusts to maintain resilience through these challenging times and they will ensure that the most critical risks are managed effectively.
Financial Reporting
Whilst this sector is in a relatively stable position in terms of income streams, financial expertise is required on the board to advise on procurement matters, budgets and business plans. Many schools will incur exceptional costs in relation to COVID-19. A financial expert would advise on support funding to cover such costs in order to maintain steady cashflow. See our previous blog covering the ESFA supplementary bulletin addressing COVID-19 issues.
At UHY our accounts and audit teams have adapted their approach during the pandemic with the use of technology to ensure they are in a position to fulfil their roles and continue to deliver a value added service to our clients. Governing bodies and school leaders are under significant pressure to keep on top of this ever-changing situation and to keep schools open safely.
If your trust needs any support regarding any of the above, please do not hesitate to contact either myself or your usual UHY contact.
