Financial Due Diligence

Due Diligence by Experienced Academy Experts

Whether you’re a Multi Academy Trust deciding if a new school (or smaller MAT) should join your trust, or a standalone school (or smaller MAT) deciding whether to a join a trust, it’s a big decision which requires careful consideration. It is important to consider longer term financial stability, along with all other factors.

Financial due diligence provides an in depth look at the financial position and performance of an academy trust. This requires more than just checking the most recent set of management accounts.

Financial considerations for schools joining your MAT

  • Most recent management accounts and current reserve position
  • Financial forecasts for the next 3 years
  • Forecasted pupil numbers and the impact on future funding
  • Building condition and the impact this could have on potential significant capital or repair expenditure in the future
  • Benchmarking current financial ratios against schools already in the MAT
  • Sense checking budgets and forecasted future performance to check any assumptions made are reasonable
  • The internal control environment

Financial considerations for schools considering joining a MAT

All of the above points will form part of the due diligence if you are looking to join a larger multi academy trust, but there are also a number of further considerations:

  • The contribution you would need to make to central services and what services you would receive for this
  • If the MAT has more than 3,000 pupils, they will qualify for School Condition Allowance (SCA), rather than applying for CIF funding for capital projects. It is important to know the trust’s policy for allocating these funds to ensure capital needs are addressed
  • The economies of scale which can be obtained from being part of a larger entity with more purchasing power

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We pride ourselves on our professionalism and knowledge. Let us put that to use to start benefiting your academy.

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Academy Services

  • Audits & Accounts

    All academy trusts are required to appoint auditors and file audited accounts with the Education Funding Agency (EFA) and Companies House.

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  • Accountancy Support

    We provide a wide range of ad hoc and regular services to Academy clients to help them with their day to day accountancy needs.

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  • EFA Reporting

    Academies have a number of EFA reporting requirements. As sector specialists, our Academy Accountants have experience of preparing these EFA returns and ensure our clients file all returns before the due date

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  • Taxation

    Despite being a type of charity, academies cannot ignore taxation. The main taxes that must be considered are VAT, Employment Taxes and Corporation Tax

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  • Governance

    Griffin has extensive experience working hand in hand with academy clients to ensure the Governance systems they have in place are robust

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  • Financial Due Diligence

    Financial due diligence provides an in depth look at the financial position and performance of an academy trust. This requires more than just checking the most recent set of management accounts

    Find out more

  • Internal Audits

    We undertake internal audit services for many Academy Trusts, allowing us to gain a deeper understanding of your systems and policies because of our experience in the field

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For more information on our services, or to arrange a free initial meeting to discuss how we could help your business, please get in touch.

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Griffin Chartered Accountants offer a full range of accountancy services to SMEs across the South West.

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