How To Prepare For Your Annual External Audit: Guidance For Academies

As the calendar and academic year continue to fly by, academy finance teams must now look to their year-end on 31 August and consider preparations for the external audit of the Trust’s financial statements.

So, where should you begin?

1. Review the DfE Guidance

• Ensure you’re aligned with:
  • Academy Trust Handbook 2025
  • DfE Financial Reporting Requirements
  • Accounts Direction 2024 to 2025
  • External audit preparation checklist for academy trusts

2. Coordinate with the Auditor Early

• Confirm audit dates and timelines
• Provide access to systems or documentation
• Request the Inflo list of audit deliverables if not already provided

3. Prepare Staff for Auditor Interaction

• Inform the Trust’s finance team and relevant department heads of the audit dates
• Check for annual leave in those departments
• Clarify who will be the main point of contact for the auditors
• Provide training or a briefing if needed
• Plan for the Trustees’ report to be written and agree on a timescale
• Ensure early communication with the external actuary for the LGPS valuation report
• Also, need to ensure early communication with the investment manager if applicable
• Ensure valuations required (including for new converters) are requested early

4. Review Last Year’s Audit Findings Report / Management Letter

• Address any issues raised previously (management letter points)
• Show evidence of resolution or improvement
• Include a summary response if needed

5. Collate Governance & Compliance Documentation

• Board meeting minutes
• Risk register
• Register of interests
• Declaration of related party transactions
• Evidence of financial oversight (budget reviews, forecasts)
• Any updated policies (finance, procurement, risk, etc.

6. Prepare Financial Records – some of the key areas to consider include:

• Trial balances – ensure prepared and intra-school / top-slice nominals net off to £nil
• Bank reconciliations – ensure reconciliations are prepared and agreed to the bank statements
• Payroll records – ensure available and payroll reconciliation is prepared
• Budget forecast return – ensure prepared and available for the going concern review
• Fixed asset register – ensure reconciled to nominal ledger and additions, disposals and depreciation adjustments posted
• Debtors & creditors schedules – ensure reconciliations are prepared for all nominal codes
• Funds analysis – ensure prepared and reconciled to nominal ledger / restricted funds, considering and analysing carry forward amounts
• Information for new converters – ensure all information is obtained early (valuations, cash on conversion, pension on conversion, etc)
• Pension valuation reports – ensure communication
• Investment reports – ensure requested early if applicable
• Suspense accounts – ensure all suspense codes reconciled to £nil at year-end

7. Key dates

31 December 2025 – Submission of audited accounts, management letter, accounts submission cover and annual internal scrutiny report to DfE

January 2026 (Date TBC) – Submission of Academy Accounts Return to DfE

31 January 2026 – Publish accounts in full on the academy trust’s website (retain previous 2 years)

31 May 2026 – File accounts with Companies House

If you have any questions regarding the above, please do not hesitate to contact your usual BHP contact or the academies team here.