Recommendation 24

When we last reported on the academy accounts, back in January 2019, we were reporting on a SARA that carried forward a qualified audit opinion since its inception in 2015/16 due to a limitation of data available to verify the fair recognition and valuation of the £45 billion of land and buildings making up the academy estate.65 These historic issues have since been addressed, and the Department undertakes its own programme of revaluations using qualified surveyors.66 The Whole of Government Accounts (WGA) has also received a qualified audit opinion since the inception of the SARA due to the differing financial year-ends, which is yet to be fully resolved – the academy sector reports on an academic year basis, whereas the WGA, in line with the majority of government accounts, reports on a financial year basis i.e., to 31 March. The Department has deemed it not practical to change the academies year-end, given the disruption it would have to the sector and misalignment it would cause in financial planning and management for a sector that operates using the academic year.67