What you must include in monthly budget monitoring reports
Your trust's internal control framework must include the preparation of monthly budget monitoring reports.
These must include:
- The financial performance and position of the trust
- Budget variance reports
- An income and expenditure account
- A cash flow and balance sheet
See paragraphs 2.18 to 2.21 of the Academy Trust Handbook.
Automate this process where possible
Automate the monthly accounts preparation process as far as possible, so that it takes less time. Your accounting software may be set up to help with this. This is explained in section 3 of the Education and Skills Funding Agency (ESFA) guidance on academy trust management accounting.
Other requirements you need to follow
You must share the management accounts with your:
- Chair of trustees every month (for all trusts, irrespective of size)
- Other trustees 6 times a year (this does not need to be tied to meetings)
Consider the accounts when it meets, and minute this Make