There are circumstances in which a trust may consider appointing an accounting officer (“AO”) or chief financial officer (“CFO”) who is not an employee of the trust. The general rule, as set out in the Academy trust handbook 2021, is that the AO and CFO should be employed by the trust.
The AO and CFO are two vital roles within academy trusts. Any unforeseen absences need to be covered quickly to make sure that their financial responsibilities are re-assigned to another suitable individual. The reassignment may only be temporary and the ESFA is clear that off-payroll appointments will only be approved in exceptional circumstances, and for a maximum of 12 months.
Before approving any such appointments, the ESFA will want to understand the suitability of the person for the role being filled, and how they will be held accountable. The trust will have to comply with normal procurement (and potential related party) rules and ensure that the tax arrangements meet guidance issued by HM Treasury.
The next steps
If you find yourself in the situation where you are looking at a temporary arrangement for your AO or CFO please consult the guidance here and contact either Liz Searby or your usual UHY contact for further advice.
