Academies Accounts Direction 2026: What trusts need to know

With the new academic year underway, academy trust finance teams will be turning their attention to the preparation and audit of their financial statements for the year ended 31 August 2026.

The Department for Education's Academies Accounts Direction (AAD) 2025 to 2026 sets out the requirements academy trusts and their auditors must follow when preparing this year's accounts.

There are several changes trusts should be aware of, covering areas including the Trustees' Report, staff remuneration, severance payments and financial transparency.

Here's a summary of some of the key changes.

Changes to the Trustees' Report

There are a number of changes affecting the information included within the Trustees' Report.

Academy trusts are no longer required to report on trade union facility time within the report.

There are also changes relating to Streamlined Energy and Carbon Reporting (SECR).

Academy trusts that meet the relevant criteria as a large company or high energy user are required to disclose energy and carbon information within their Trustees' Report.

Where a trust is exempt from these requirements, it will now need to state that exemption within the report. Other trusts are still encouraged to voluntarily report on their energy use and carbon emissions.

Regularity and propriety

The definitions of regularity and propriety have also been updated.

The revised wording now incorporates the setting of budgets, bringing the definitions into line with the government's Managing Public Money guidance.

Trusts should ensure that their financial management and governance processes continue to demonstrate appropriate oversight of how public funds are planned, managed and spent.

Severance payments and restructuring costs

There is an important change to the treatment of certain employee termination costs.

Payments in lieu of notice must now be included within severance payments when analysing staff restructuring costs.

Finance teams should therefore make sure these payments are correctly identified and classified when preparing the year-end accounts.

Higher-paid staff disclosures

The requirements around higher-paid staff have also been clarified.

Where an employee's earnings would have exceeded £60,000 on an annualised basis, but they worked part-time or for only part of the year, this must now be explained through a narrative disclosure within the higher-paid staff section.

Trusts should review their payroll information carefully to identify any employees who may fall within this requirement.

Key management personnel

There is also a change to the disclosure of remuneration for key management personnel.

Previously, the requirements focused on employees. The updated Accounts Direction means remuneration disclosures must also include senior personnel operating in a consultancy capacity where they form part of the trust's key management.

This means trusts may need to look beyond their payroll records when identifying individuals who should be included within the disclosure.

Church academy trusts

The updated guidance also includes some amendments for church academy trusts concerning the treatment of expenditure on academy sites.

The changes provide further clarification around whether certain site improvements should be treated as capital expenditure or revenue expenditure.

Affected trusts should ensure the appropriate accounting treatment is considered when preparing their year-end financial statements.

New financial transparency requirements for MATs

Multi-academy trusts should also prepare for an additional financial transparency requirement.

From October 2026, MATs are required to publish an annual summary statement of their financial arrangements alongside their audited accounts on their website.

The statement should provide greater transparency around how funding is distributed across the trust, including how funds are allocated and the amount spent on individual schools.

For the financial statements covering the year ended 31 August 2026, the summary statement will need to be published on the trust's website by 31 January 2027.

Important dates for academy trusts

Alongside understanding the changes to the Accounts Direction, trusts should make sure the key reporting dates are firmly in their calendars.

For the year ended 31 August 2026, academy trusts must submit their audited accounts, audit findings report, accounts submission cover and annual internal scrutiny report to the DfE by 31 December 2026.

The accounts must then be published on the trust's website by 31 January 2027 and filed with Companies House by 31 May 2027.

The Academies Accounts Return for 2025/26 is also due to open by early November 2026, with a submission deadline of 26 January 2027.

Preparing for the 2026 academy year-end

While many of this year's amendments are relatively targeted, trusts should make sure their finance teams, trustees and auditors understand the new disclosure and reporting requirements before finalising the accounts.

In particular, MATs should prepare for the new financial summary statement, while all trusts should review changes affecting remuneration, severance payments, energy reporting and the Trustees' Report.

Planning early can help identify any additional information that needs to be collected and reduce the risk of issues arising during the audit process.

If your academy or Multi-Academy Trust needs support preparing its 2025/26 financial statements, year-end audit or wider academy accounting requirements, speak to the education team at SJC, Chartered Accountants. We're here to help.