In a letter to academy Accounting Officers, Paul Lauener, Chief Executive of the Education Funding Agency, outlined financial management and governance changes that have taken place over the year.
The 2014 Academies Financial Handbook emphasises the importance of reviewing governance arrangements periodically, including the composition of the board in terms of skills, effectiveness, leadership and impact.
Mr Lauener goes on to further emphasise the need to give the public confidence in the governance of academies, and draws attention to the guidelines regarding avoidance of personal gain and conflicts of interest in the handbook. Breaching the principles and requirements for managing transactions with connected parties can result in a trust being issued with a Financial Notice to Improve.
To promote and ensure transparency , trusts must now publish relevant business and pecuniary interests of their members as well as their audited annual accounts on the trust’s website. Audited accounts must be now published on the website by the end of January following the year end to which the accounts relate.
Source : EFA Letter to academy trust accounting officers : September 2014.