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Embracing Enhanced Internal Scrutiny: Insights into changes to the Academy Trust Handbook for 2024/25
The latest Academy Trust Handbook was published on the 31st of July 2024.
By Amelia Clark
Internal Scrutiny Auditing Manager
The recent publication of the 2024 Academy Trust Handbook (ATH) has introduced significant changes for the sector, with a particular focus on internal scrutiny. The requirement for academy trusts with a revenue income exceeding £50 million to engage a professional audit function is a clear indication of the sector’s growing emphasis on increasing scrutiny of financial and operational management and governance.
The new version of the Handbook requires that Trusts with annual revenue over £50 million ‘should’ from 2024 and ‘must’ from 2025 use either an in-house auditor or a bought-in internal audit service. This shift removes previous options for Trusts of this size, such as an independent peer review or using non-employed trustees to carry out internal scrutiny.
The Handbook also specifies that those performing internal scrutiny should be members of a relevant professional body and have relevant professional qualifications or experience relevant to the area being reviewed.
A Welcome Change
Internal scrutiny, when conducted effectively, provides essential assurance to the board that systems and controls are robust and operating as intended. It's a tool that can identify potential issues before they escalate, protect the trust's reputation, and ultimately, improve outcomes for students.
As professional internal auditors we welcome the changes which will continue to drive up the quality and rigour of internal scrutiny across the sector. As a member of the Institute of Internal Auditors I feel that increased emphasis on professionalism and appropriate qualifications and skill of those undertaking scrutiny of academy trusts should lead to more effective scrutiny with a broadened financial and non-financial scope. This in turn will lead to more rigorous oversight, more consistent quality of internal scrutiny of larger trusts, and foster an environment of greater accountability, transparency and risk management.
We feel strongly that being members of professional bodies drives up the quality of internal scrutiny in the sector by ensuring that those conducting internal scrutiny receive ongoing professional development, adhere to high codes of conduct and standards, and provides access to expertise, professional networks and resources. This is why we are proud to be members of various relevant professional bodies including the Institute of Internal Auditors (IIA), and the Institute of Chartered Accountants in England and Wales (ICAEW). We work in partnership with our colleagues who are professionals in other aspects of Trust management including governance professionals, human resource professionals, finance professionals and payroll professionals to ensure that we have the relevant qualifications, skills and experience to deliver internal scrutiny across the spectrum of strategic risks on your risk register to the highest professional standards.
Why Partner with Strictly Education for Your Trust’s Internal Scrutiny Programme?
As academy trusts deal with the complexities of implementing a professional internal audit function, partnering with a specialist provider like Strictly Education can make a significant difference. With a deep understanding of the education sector, Strictly Education offers a tailored approach to internal scrutiny that goes beyond mere compliance. Here's why Strictly Education is the ideal partner for your trust:
- Sector Expertise: Our team comprises education specialists with a proven track record of supporting academy trusts. We understand the unique challenges and opportunities faced by the sector.
- Tailored Approach: We recognise that every trust is different. Our internal scrutiny programmes are customised to meet your specific needs and risk profile, ensuring maximum value.
- Proactive Risk Management: We don't just identify problems; we help you develop strategies to mitigate them. Our focus is on building a culture of continuous improvement.
- Data-Driven Insights: We leverage data analytics to provide actionable insights, enabling you to make informed decisions and optimize resource allocation.
- Strong Relationships: We work closely with your team to build trust and confidence. Our collaborative approach ensures a smooth and effective process.
- Compliance Assurance: We stay up-to-date with the latest regulations and best practices, providing you with peace of mind that your trust is meeting its obligations.
By partnering with Strictly Education, you can:
- Meet regulatory requirements with confidence
- Enhance governance and risk management
- Improve operational efficiency
- Protect your trust's reputation
- Demonstrate accountability to stakeholders
The next age of internal scrutiny starts this September. It's time to embrace this opportunity to strengthen your academy trust. Partner with Strictly Education and take the first step towards a more robust, resilient, and successful future.
To discuss your trust’s internal scrutiny requirements please call 0330 123 2549 or email enquire@strictlyeducation.co.uk
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