Education

Monahans has specialised in providing a range of services to support the specific requirements of schools and other educational establishments for many years.

We were the appointed auditors for 15 Grant Maintained Schools and following transfers to Foundation Schools many of these retained our services. We currently assist schools in the following areas:

• Audit of the School Fund. 
• Audit of the annual accounts and the accounting systems.
• Review of financial records and advising on controls. 
• Payroll services. 
• Advising and setting up accounting systems. 
• Assisting in the development of Financial Procedures Manuals. 
• Providing IT support. 
• VAT advice. 
• Establishing a limited company for trading activities.
• Conversion process to Academy status and ongoing financial support for Academies - see below for more information.

Use this link to contact us for more information about our Education specialism.

Academy Schools

Significant change is expected within the education sector following the Education Secretary’s announcement late in 2010 that all maintained primary, secondary and special schools will be eligible to become Academies. Initially this option was only available to schools with ‘outstanding’ Ofsted reports, but is now open to other schools providing they work in partnership with a high performing school.

Benefits of Academy Status

Schools with Academy status will have greater flexibility in setting policies including:

• Creating their own curriculum
• Admissions policies
• Staff structure and reward 
• The number and length of school sessions during the year
• They will own their buildings and land with a greater say in their future

One of the biggest attractions for new Academies is the additional funding from the Department for Education and greater control over how it is used.

Additional Responsibilities

Before leaping to change to Academy status, schools should be aware of the additional responsibilities the change will bring, including:

• A new Academy will automatically become a charity and will become established as a Company Limited by Guarantee. It will therefore be subject to the accounting requirements of both the Companies Act and Charities Act.
• Each Academy will need to appoint an external independent auditor to provide an annual audit.
• The annual accounts will need to be prepared to comply with the Department for Education guidance, based on company and charity law. 
• The financial systems of many Academies may need to be reviewed to ensure the effective management and control of their finances. 
• Academies will need to manage the administration of running their own payroll and take on greater management of staff.

Conversion to Academy Status

This is not a simple process and the school governors, heads and parents should take a commercial as well as educational stance when considering moving to Academy status. The conversion should be approached as a business acquisition and an in-depth review taken of the pros and cons of changing. A Due Diligence Review should be undertaken to highlight any financial issues and ensure the new Academy begins on the right foot. Examples of issues to look out for include:

• Pension black holes i.e. will the new Academy inherit any significant deficits 
• Other payroll issues e.g. ensuring there are no significant existing errors
• Ensuring there is complete clarity on any financial surplus or deficit on the date of conversion
• Clarifying the status of the other schools joining a lead school, particularly if they are going to form one legal entity.

A lot of the expertise necessary to run an Academy is quite different to that needed to run a school under local authority control. Even a very well managed school may struggle with the changes unless they quickly gain the necessary expertise and professional assistance.

Most school governors are very committed but, along with Head Teachers, may have limited experience of a major business transaction such as the conversion to Academy status.

How Monahans Can Help

• Assistance with financial reviews 
• Payroll Services & Support – read more here
• Review of Banking Arrangements – read more here
• Review of Accounting Systems, Training & Support

If you subsequently become an Academy, we can provide ongoing support through:

• Assistance with the preparation of annual accounts and meeting the requirements of the charities SORP and company law
• Audit 
• Internal control reviews
• School fund examinations
• Payroll bureau – read more here
• HR assistance – read more here
• VAT and corporation tax advice – read more here
• Advising on the financial implications of land transactions 
• Training and guidance for governors and the finance team

We have assisted many schools with the transition to grant maintained status and this, together with our significant charity expertise, puts Monahans in an ideal position to assist you with the transition to Academy status.

Monahans have provided audit services to the school for many years. They have provided an excellent and efficient service and understand the complexities of education finance well.
Bursar, Devizes School

If you would like to discuss the services that Monahans are able to offer please contact either Steve Fraser at our Swindon office or Linda Boss at our Trowbridge office.

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