22 November 2018
As we are fast approaching the close of the academy audit season, it is worth looking at the guidance available on the what steps to take in the event of a long term absence or sudden departure of the Accounting Officer, a key signatory on the statutory accounts.
Essentially, each academy trust must have an Accounting Officer who is personally responsible to Parliament. If the trust does not intend to appoint an Accounting Officer before the accounts are signed they must appoint an interim or acting Accounting Officer. The acting Accounting Officer must be briefed by the trustees and senior leaders and must have access to evidence and relevant information so that they are in a position to support their sign off of the Regularity Statement. The acting Accounting Officer should be one of the senior leaders, for example the acting Head.
Guidance from HM Treasury – Managing public money
3.6 When the accounting officer is not available
3.6.1 Each public sector organisation must have an accounting officer available for advice or decision as necessary at short notice.
3.6.2 When the accounting officer is absent and cannot readily be contacted, another senior official should deputise. If a significant absence is planned, the accounting officer may invite the Treasury (or the sponsor department, as the case may be) to appoint a temporary acting accounting officer.
Guidance from the 2017-2018 Academy Accounts Direction
9.2.24 The accounting officer should be able to support their statement. Although specific documentation is not required, the accounting officer should retain a file which details work undertaken throughout the year to:
- provide support for the accounting officer sign off at year end
- assist with the reporting accountant’s questions
9.2.25 The retention of a working papers file would also assist the academy trust if there was a change of accounting officer during the reporting period, or before finalisation of the accounts.
9.2.26 Where there is a change of accounting officer during the year, or up to the date of signing the declaration, including the appointment of an interim accounting officer, it is the responsibility of the new accounting officer to be satisfied they can support their signing of the statement. This will be achieved through evidence of discussions between the new accounting officer and trustees, the responsible officer and/or internal auditors, the senior leadership team and, where possible, the previous accounting officer, along with the availability of all relevant minutes and reports during the period covered by the statement.
The Academy must also update the ESFA of the changes via their GOV.UK secure access account. They have 14 days to notify the ESFA of this change.
In addition, we would advise our clients that it would be best practice to change all references in the accounts from ‘Accounting Officer’ to ‘Acting Accounting Officer’ or ‘Interim Accounting Officer’, for example in the Governance Statement, Regularity statement and the References and Admin pages. It should be clear on all signing pages of the accounts that they are the Acting Accounting Officer.
We would also suggest that something is written in the Governance Statement about the change.
If you have any questions about the changes please contact me or your nearest UHY academy specialist.
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