Post-16 Audit Code of Practice 2024 – upcoming consultation
The Post-16 Audit Code of Practice is about to undergo a significant review. Following the publication of the College Financial Handbook, which has been widely well-received, the justification for a standalone audit code has come into question. Consideration is therefore being given to whether the code can be, in part, incorporated into the Handbook (largely in respect of the duties and responsibilities of the College) as well as to developing a new audit framework document for external parties such as external and internal auditors. The ESFA are planning to review this during the back half of 2024 with a view to gaining opinions from the sector in early 2025 - so keep an eye out as your input and contributions will be welcome
Accounting year end
Following reclassification, HM Treasury notified the ESFA that is would seek to change the financial year end for further education institutions to 31 March. A working group has been formed and is looking at how an assurance framework can be implemented that would allow the July year end to be retained whilst providing interim assurance to HMT that can be incorporated into the Whole Government Accounts. The interim assurance may take the form of a financial return that will require some level of assurance to enable the DfE to incorporate the results of the FE sector into the Whole Government Accounts. The project has glimmers of hope as, under current plans, the FE Sector may not be required to be included within the Department's consolidated accounts which may afford a lighter touch regime. We hope that this project will conclude this year and a decision will be made in time for an effective date in 2026.
VAT126 Status
We had hoped this would be a key budget announcement and some very welcome news for the sector. Alas, there was little positive news from the Spring 2024 budget but we remain optimistic that the FE sector will be given the same VAT status that the academy sector currently enjoys.
