The Government have released a new standardised Academy Chart of Accounts.
The standardised Academy Chart of Accounts is for Budget Codes (also known as Ledger Codes, or in systems such as PS Financials, Nominals) and the Financial Reporting Codes. It has been recommended that academies have this Chart of Accounts implemented for Sept ’19 but is currently optional.
What is the motivation behind this change?
- The primary reason for this change is that the Government want to introduce an automated system to transfer data for the ESFA Return in the future. This would save academies valuable time. The automated system will match the codes to the relevant categories.
- Having a standardised academy Chart of Accounts will also mean that reporting within MATs will be easier. Plus, when academies join MATs you will not need to convert their whole budget onto the MAT’s Chart of Accounts.
- Moreover, the new Chart of Accounts will also help improve the speed and efficiency of implementation on budgeting and finance systems due to having the Budget Codes pre-completed for you.
Academies which choose to adopt the new Academy Chart of Accounts can still create up to ten Budget Codes and the Cost Centres do not need to change from their existing setup.
Academies can also choose to map their existing Budget Codes to the new Financial Structure. If you choose this option, it is important to ensure that your Budget Codes have enough detail for the requirements:
‘You may map your existing ledger codes but you will need to consider whether your existing ledger code structure has enough detail for full automation, particularly balance sheet reporting in the accounts return.’
SBS Online customers will be receiving an email in the near future with regards to how this change could affect them and how we can assist you.
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