Academies Accounts Direction 2025: Key updates

The Direction, along with the documents set out above, must be followed as a contractual requirement under an Academy Trust’s funding agreements. The guidance ensures that financial reporting remains transparent, consistent and aligned with statutory requirements, it is therefore important that there are regular updates to improve the guidance.

The 2025 edition introduces the following updates:

Updated disclosure requirements:

• The guidance on related party transactions has been enhanced to include clearer thresholds and reporting expectations.
• There are now requirements for new disclosures for climate-related financial risks. This aligns with broader government sustainability goals and a recognition generally in the education sector of increased risks posed by climate change.

Changes to the Model Set of Accounts:

• The ‘Coketown’ model has been revised to include the following:
  • Updated narrative reporting templates.
  • Revised notes on pensions liabilities and capital grants.
  • Streamlined presentation of governance disclosures.

Auditor and reporting accountant guidance:

• The framework and guide have been updated to reflect:
  • Revised expectations for regularity reviews.
  • Clarified roles and responsibilities under the Companies Act 2006.
  • Emphasis on materiality thresholds and audit evidence.

Transition from ESFA to DfE

• The Education and Skills Funding Agency (ESFA) was an executive agency of the DfE responsible for funding education and skills providers in England. It closed on 31 March 2025.
• Following the closure of the ESFA, all responsibilities have been transferred to the DfE. The Direction has been updated to make clear that Academy Trusts should now direct all queries and submissions to the DfE.

Compliance and Submission:

• Academy trusts must:
  • Prepare financial statements in line with the 2025 direction.
  • Submit audited accounts by the statutory deadline.
  • Use the updated accounts submission coversheet, which is due to be issued.

Looking Ahead:

• The DfE has also released the Academies Chart of Accounts 2025 to 2026, which aligns with the new Direction and supports automation and consistency in financial reporting.

Overall, the updates to the Direction provide further clarity, consistency and accountability for Academy Trusts and auditors.

Blake Morgan acts for a variety of education clients including multi-academy trusts. Please contact a member of our education team for further information or to request a call.