Recommendation 30

In 2019/20, 9% of trusts received a modified regularity opinion i.e. a regularity exception was identified, compared with 7% in 2018/19. A regularity exception means that the auditor found some element of income or expenditure that may have been outside its permitted use, or where the trust’s own agreed procedures were not followed. The impact of COVID-19 was reported in the SARA as the cause of just under 14% of the reasons for a regularity exception.79 We asked ESFA how well it thought internal scrutiny processes were working within academies given the level of regularity exceptions. The ESFA told us that the regularity opinions were driven by increased scrutiny and regulation, where it is taking some trusts longer to full comply with new requirements. However, the ESFA also informed us that an immediate response would be expected from trusts who had received a modified regularity opinion, looking for this to be resolved prior to the following audit.80 Ensuring the skills and experience of academy leaders and trustees