Academy Sector Annual Report: Key Insights for 2025

The latest Academy Sector Annual Report highlights critical financial and operational findings. At SJC Chartered Accountants, we guide academies through complex financial challenges. Here are the key takeaways:

1. Uncertain Pension Liabilities

Auditors have flagged concerns about the accuracy of pension liability estimates, which pose a significant risk of material misstatement.

2. Return to Pre-Covid Academy Conversions

Academy conversions have rebounded to pre-pandemic levels, with 391 schools converting in 2022-23.

3. More Trusts in Deficit

The number of trusts reporting cumulative deficits increased, with 55 in deficit, though 423 trusts reported surpluses.

 

4. Reduced Reliance on Sponsorships

The Department for Education is placing less emphasis on sponsor bodies to support underperforming schools.

5. Fraud and Data Breach Concerns

The report highlighted growing concerns over fraud and cybersecurity risks, stressing the need for stronger safeguards.

At SJC Chartered Accountants, we provide strategic financial support to academies, ensuring compliance and long-term financial stability.