Although the 2026 academy audit may feel some way off, experience shows that trusts who prepare early have a smoother audit, fewer last minute queries and more confidence in the robustness of their financial management. With increasing scrutiny on governance, financial controls and regularity, now is the time to review what is working well – and where improvements may be needed.

Below, we set out practical steps academy trusts can take to put themselves in the strongest possible position for their 2026 audit.

Revisit your financial controls and procedures

Strong financial controls underpin a successful audit. Trustees should ensure that finance manuals and procedures are up to date and being correctly applied.

Key areas to consider:

  • authorisation limits and evidence of approval
  • bank account reconciliations
  • budgeting and in year monitoring of income and costs
  • controls over payroll changes and starters/leavers.

This is also a good opportunity to check on progress in addressing weaknesses identified in last year’s audit management letter.

Governance and oversight

The audit will focus on governance arrangements. Trustees should be confident that they are providing effective oversight and challenge, with supporting evidence in place.

Practical steps include:

  • ensuring comprehensive minutes are prepared of finance committee meetings, and that these minutes demonstrate appropriate challenge, particularly around the annual budgeting process
  • checking that all details disclosed on Get Information About Schools and Companies House are correct
  • keeping declarations of business interests complete and up to date.

High-quality governance documentation makes a significant difference during the audit and reduces the number of follow up queries.

Keep on top of regularity and DfE compliance

Regularity remains a central part of the academy audit. Trusts should ensure that transactions are compliant with the latest Academy Trust Handbook.

Areas that commonly cause issues include:

  • related party transactions
  • procurement arrangements and value for money.

We encourage our clients to talk to us about major transactions as they happen. For example, if you have a major procurement or employee settlement, share the process you have been through to ensure value for money and compliance with the Academy Handbook with your auditor before finalising the transaction. This will help mitigate the risk of regularity issues being highlighted in the audit process.

Review fixed assets 

Fixed assets are often an area where issues arise late in the audit process. You can reduce the number of audit queries by:

  • Reviewing the fixed asset register for completeness and accuracy. Do the numbers agree to the trust’s nominal ledger?
  • Ensuring capital additions are identified and classified accurately.
  • Checking depreciation rates remain appropriate.
  • Maintaining good records of capital projects. Where a project overlaps into the next accounting period, assess the value of the work done at 31 August and consider whether any costs need to be accrued.

Prepare early for year end accounts

A well planned year end timetable is one of the most effective ways to reduce audit pressure. Business managers should:

  • Agree internal deadlines for reconciliations and working papers.
  • Ensure key reconciliations (bank, payroll, purchase ledger control accounts) are up to date throughout the year.
  • Identify any complex or unusual transactions and discuss them with your auditors.
  • Agree the timetable and make sure you allow enough time to complete all your internal checks and reviews before handing over information at the start of the audit. If there are problems with the figures given to the auditors (errors or omissions) it will delay your audit and create time pressure for your team.

Communicate with your auditors

Open and proactive communication with your auditors is invaluable. Early discussions about planned changes – such as academy transfers, growth, restructuring or new funding streams – can help avoid surprises whilst the audit is ongoing.

To ease the burden on your finance team, ask your auditor to perform audit testing during the summer. Systems testing, as well as transaction and regularity testing, can be done before the year-end, reducing the workload in the autumn.

Make sure that your auditor arranges a planning meeting well in advance and issues an information “wish list” to give you plenty of time to upload all that is needed.

Take the next step in preparing for your 2026 audit

Trusts that take time now to review controls, governance and compliance are better placed to manage risk, avoid surprises and reduce pressure on finance teams at the year end.

Our specialist academy audit team works with trusts of all sizes to provide:

  • pre audit readiness
  • practical support in strengthening financial controls and governance
  • clear advice on DfE regularity and Academy Trust Handbook compliance
  • a responsive, proactive audit approach with no last minute surprises.

The next step

If you would like an informal discussion about your 2026 audit, please contact Liz Searby, or speak to your usual UHY academy audit adviser. Acting now can save time, stress and cost later.

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