Preparing for Your 2026 Academy Audit: Practical Steps You Can Take Now

Although the 2026 academy audit season may still feel some way off, taking action early can make a significant difference to how smoothly the process runs.

Academy trusts that prepare proactively are often better positioned to reduce last-minute pressure, strengthen financial governance and avoid unnecessary audit issues.

With increasing scrutiny around compliance, governance and financial controls, early preparation is becoming more important than ever.

Strengthen Financial Controls

Robust financial controls remain one of the foundations of a successful academy audit.

Trusts should take time to review whether key processes are both effective and consistently applied across the organisation.

Areas worth reviewing include:

• Approval and authorisation procedures

• Bank reconciliations

• Budget monitoring

• Payroll controls

• Procurement processes
  

It is also advisable to revisit any recommendations raised in previous audits to ensure identified weaknesses have been fully addressed.

Governance & Oversight Continue to Be a Key Focus

Auditors are placing increasing emphasis on governance arrangements and trustee oversight.

Meeting minutes should clearly demonstrate challenge, discussion and decision-making - particularly around budgets, financial performance and risk management.

Academy trusts should also ensure:

• Statutory records are up to date

• Declarations of interest are complete

• Companies House and GIAS records are accurate

• Governance documentation is well maintained
  

Strong governance records can help reduce audit queries and improve overall compliance.

Stay Ahead of DfE Compliance Requirements

Compliance with the Academy Trust Handbook remains a major area of audit focus.

Particular attention is often given to:

• Related party transactions

• Procurement procedures

• Value for money considerations

• Regularity compliance
  

Where trusts are planning significant or unusual transactions, discussing these with auditors in advance can help minimise the risk of issues arising later during the audit process.

Review Fixed Asset Records Early

Fixed assets are a common source of delays during academy audits.

To reduce issues later in the process, trusts should review whether:

• The fixed asset register agrees to accounting records

• Capital additions have been correctly classified

• Depreciation policies remain appropriate

• Capital projects are properly documented
  

Where projects span multiple accounting periods, trusts should also consider whether accruals are required at year end.

Plan Ahead for Year-End Reporting

One of the most effective ways to reduce pressure during audit season is to establish a clear year-end timetable well in advance.

Finance teams should aim to:

• Set internal deadlines for reconciliations and working papers

• Keep key balances updated throughout the year

• Identify unusual transactions early

• Allow sufficient time for internal reviews before information is provided to auditors
  

Errors or omissions in the initial information submitted can significantly delay the audit process and increase workload for finance staff.

Maintain Open Communication With Auditors

Regular and proactive communication with auditors can make the audit process far more efficient.

Trusts should keep auditors informed about:

• Academy transfers

• Expansion plans

• Restructuring activity

• New funding streams

• Significant procurement exercises
  

Some audit testing can also often be completed before year end, helping to reduce pressure during the autumn term.

Early Preparation Can Reduce Stress & Risk

Academy trusts that review systems, controls and compliance throughout the year are typically better prepared for audit season and less likely to face unexpected issues.

Preparing early not only supports a smoother audit but can also strengthen wider financial management and governance across the trust.

At SJC Chartered Accountants, we support academy trusts and education organisations with audit preparation, compliance and financial governance advice.

Our services include:

• Academy audit support

• Financial control reviews

• Governance and compliance advice

• Year-end preparation assistance

• Academy Trust Handbook guidance

• Ongoing accounting and advisory support
  

If you would like advice on preparing for your 2026 academy audit, contact the team at SJC Chartered Accountants.