College Financial Framework for 2024-25

The Department of Education (DfE) has recently published the Financial Framework for 2024-25, this includes the updated accounts direction, as well as a new Framework and Guide for external auditors and reporting accountants of colleges (‘the Framework and Guide’). Below, is a brief summary of the key changes to help keep you informed and better prepared.

The Framework and Guide

This new framework replaces the Post-16 Audit Code of Practice for accounting periods ending on or after 31 July 2025.

However, while the structure and order of the document has changed from the Audit Code of Practice, and some sections are now located in the Accounts Direction or College Financial Handbook, the requirements for colleges remain largely unchanged.

The document includes a new Annex (Annex C) which expands and updates the Department of Education's guidance to reporting accountants concerning those areas where regularity testing might be focused. 

College Accounts Direction and Regularity Self-Assessment Questionnaire (RSAQ) 2024 to 2025

Only minor changes have been made to the accounts direction this year, which include:

• The requirement for the Chair to sign the Statement of Regularity, Propriety and Compliance has been removed; it is now solely the responsibility of the Accounting Officer,
• The Statement of Responsibilities of the Corporation has been revised to clarify that the Chair is now responsible for discussing the Statement of Regularity, Propriety and Compliance with the Accounting Officer,
• The Teachers' Pension Scheme (TPS) disclosure note has been updated,
• Disclosure requirements for 16-19 Bursaries and Free Meals in Further Education (FEFM) have been updated, including the addition of a new narrative disclosure,
• References to Education and Skills Funding Agency (ESFA) have been amended following its closure, and 
• The RSAQ has been updated to reflect the reduced threshold of £5,000 to notify DfE of any significant matters in relation to fraud and irregularity.

Aside from this, only presentational amendments have been made to reflect updated terminology.

Good practice guidance for colleges and academy trusts on novel, contentious and repercussive transactions

This replaces the previous bite-sized guide issued in relation to novel, contentious and repercussive transactions. Although there are no changes in the substance of the guidance, there are several illustrative examples provided.

Get in touch

To discuss the specifics of the 2024-25 College Financial Framework and explore how our services align with your needs, please get in touch with us.