The ESFA have published a supplementary bulletin to the College Accounts Direction and Post-16 Audit Code of Practice with guidance on how college corporations should reflect the continuing impact of the pandemic in their 2020 to 2021 financial statements.
The guide covers:
- regularity and audit implications
- reporting on financial sustainability
- annual report disclosures
- requirements for disclosure of financial support received
- other accounting matters
- a summary of the main sources of DfE / ESFA COVID-19 funding
The bulletin has the same status as the College Accounts Direction and the Post-16 Audit Code of Practice, so compliance with all 3 documents is a condition of college funding agreements.
Regularity self-assessment questionnaire – To aid corporations in their assessment of regularity relating to COVID-19 issues, and to clarify the key considerations in this regard, Annex B (COVID-19 Regularity Self-Assessment Questionnaire) sets out additional issues for corporations to consider. A copy of this completed Annex must be signed by the accounting officer and chair of governors and provided to the reporting accountant, alongside the standard Regularity Self-Assessment Questionnaire.
Annual reporting disclosures – Areas where additional information is likely to be required include, but are not limited to Corporations’ financial reviews; Financial sustainability and going concern; Governance; and Overall impact
COVID-19 funding disclosures – During 2020 to 2021, corporations may have been eligible to receive funding provided by DfE and other government bodies related to COVID-19. Reporting accountants will have an interest in whether the funding received has been used for the purposes intended.