As we approach the upcoming year end audit season, academy trusts should begin preparing the year end files for the statutory and regularity audit. The period leading up to the audit can be resource intensive and time pressured, particularly given the requirements of the Academies Accounts Direction and the Academies Trust Handbook.
An organised and proactive approach, led by the Trust’s CFO and finance team, is essential to ensure the audit process runs smoothly and efficiently. The Finance Department’s early collaboration with other key staff responsible for human resources, governance, and estates, is recommended so that a complete year end file can be finalised ahead of the auditor’s visit.
Below are key steps and best practices to help academy trusts prepare for a successful audit season.
Planning ahead
CFOs play a central role in ensuring the academy trust is audit ready. Early planning and clear communication are key to minimising disruption and ensuring compliance with the audit team requests.
Key actions
Confirm the audit timetable: Agree on the fieldwork dates, planning meetings and reporting deadlines with your auditors as early as possible. A clear timetable ensures resources can be allocated appropriately and avoids clashes with term time pressures.
Assign internal roles: Delegate responsibilities within the finance team for preparing specific schedules and documentation. Having clear internal ownership increases efficiency and accountability.
Review prior year audit feedback: Revisit your previous audit findings report, and clearance meeting notes. Address any recurring themes or unresolved issues before the auditors arrive.
Obtain a year end audit deliverables list
One of the most practical and effective steps CFOs can take early on is to request a year end audit deliverables list from their auditors. This document outlines what the audit team will need prepared and available in order to perform both the financial statements audit and the regularity assurance engagement.
Typical items requested include:
- First draft of the trustees’ report and governance statement
- Internal control policies and procedures active during the year
- Reconciled schedules for financial statement disclosure notes on:
- Average staff headcount and full time equivalent, split between management, teachers and all other staff
- Staff earnings over £60k, and key management remuneration
- Restructuring & termination payments made to staff
- Operating and capital commitments
- Related party transactions and balances
- Trial balance as at 31 August
- Nominal activity reports for the year, or read only access to the accounting and expenditure authorisation software
- Bank reconciliations and statements
- Debtors and creditors listings with supporting documentation and workings
- Payroll reconciliations
- Detailed fixed asset register, with capital additions paperwork and procurement evidence
- Procurement evidence for contract renewals, and expenditure requiring key management & trustee approvals
- Trustee board and sub-committee meeting minutes
- Year end fund analysis reconciliations, with supporting expenditure analysis for restricted grants
The importance of regularity testing
In the academy sector, regularity testing forms a critical part of the audit process. The objective is to provide assurance that income and expenditure have been applied for the purposes intended by Parliament and in accordance with the Academies Trust Handbook and the Academy Trust’s Funding Agreement.
Auditors typically require evidence for:
Procurement and tendering compliance
- Review of purchases above threshold for compliance with procurement rules
- Evidence of best value decisions and approval processes
Use of credit cards and expense claims
- Credit card statements, supporting receipts, and approval documentation
Related party transactions
- Disclosure of transactions with connected parties and evidence of ESFA approval where required
Trustee and governance arrangements
- Confirming no personal benefit, conflicts of interest registers, and related declaration
Pooling / Central Top Slice charges (if applicable)
- Supporting calculations and evidence of compliance with internal policies
Best practices when working with auditors
A good working relationship with your auditors can significantly impact the success and smoothness of your year end process. Consider adopting these best practices:
- Start early: Begin gathering requested documents over the August summer break, or earlier if possible.
- Be transparent: Share concerns or known issues with the audit team early – surprises are best avoided.
- Maintain good documentation: Clear, complete and well organised records significantly reduce audit time, and returning queries.
- Designate a primary contact: Having one point of contact (usually the CFO or a senior finance officer) improves communication and coordination.
- Utilise a secure document sharing platform: This ensures safe and timely transfer of sensitive information.
- Respond promptly to queries: Delays in responses can cascade into wider audit delays.
- Schedule a debrief meeting: Review key findings, lessons learned and areas for improvement for next year.
The next step
Academy trusts can ensure a smooth audit process by planning ahead and fostering a collaborative relationship with the audit team. Should you wish to discuss your upcoming audit, please do not hesitate to reach out to Luke Grubb, or your usual UHY academy adviser.
