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Guide to the Education Sector Annual Reports and Accounts 2019-20

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Guide to the Education Sector Annual Reports and Accounts 2019-20 Guide to the education sector annual reports and accounts 2019-20 May 2021 A summary of key information and insights that can be taken from the annual reports and accounts of the Department for Education and related bodies in the education sector in England. We are the UK’s independent public spending watchdog 2 Guide to the education sector annual reports and accounts 2019-20 Contents What this guide is about 3 Part Two Key areas of interest Other relevant publications 3 Regularity of spending 9 Part One Overview of financial reporting Accounting for student loans 10 About the Department for Education 4 Financial position of academy trusts 11 How the education sector’s accounts are consolidated 5 Academy Schools Sector Annual Report and Accounts 12 Where the Department spends its money 6 Financial sustainability of education providers 13 Content of the annual report and accounts 7 Financial impacts of the COVID-19 pandemic 14 The Comptroller and Auditor General's audit opinion 8 Future spending commitments 15 Independent inspection and regulation 16 Appendix Links to the annual reports and accounts 17 The National Audit Office (NAO) scrutinises public spending for Parliament and If you would like to know more about the NAO’s work on the Department for Education, If you are interested in the NAO’s is independent of government and the civil service. We help Parliament hold please contact: work and support for Parliament government to account and we use our insights to help people who manage more widely, please contact: and govern public bodies improve public services. The Comptroller and Auditor Colin Wilcox Laura Brackwell [email protected] General (C&AG), Gareth Davies, is an Officer of the House of Commons and leads Director, Department for Education Director, Department for Education 020 7798 7665 the NAO. We audit the financial accounts of departments and other public bodies. Financial Audit Value for Money Audit We also examine and report on the value for money of how public money has been [email protected] [email protected] spent. In 2019, the NAO’s work led to a positive financial impact through reduced 0191 269 1859 020 7798 7301 costs, improved service delivery, or other benefits to citizens, of £1.1 billion. Design & Production by NAO External Relations ● DP Ref: 009037-001 © National Audit Office 2021 3 What this guide is about About the National Audit Office The National Audit Office (the NAO), headed by the Comptroller and Auditor General Other relevant (the C&AG), audits the financial accounts of government departments and other 400 public bodies, and examines and reports on the value for money of how public accounts money has been spent. We provide assurance that public resources are accounted publications for accurately and used as intended. When this does not happen, we point it out. In 2019-20, the C&AG certified over 400 accounts representing some £1.7 trillion More information about our work on the of government expenditure. education sector in England Information about our other recent and upcoming reports About this guide on aspects of education and skills provision can be found We have prepared this guide as a summary of key information and insights that can £1.7tn on the NAO website. be taken from the annual reports and accounts of the Department for Education (the government Department) and related bodies in the education sector in England. The Department expenditure More information about central government spends nearly £70 billion each year to support the care, education and training of accounting and reporting children, young people and adults. The guide includes: You may also be interested in our interactive guide to • how the Department is structured and where it spends its money; Good practice in annual reporting (February 2021) which sets out good-practice principles for annual reporting and • how the accounts of the Department and its related bodies are consolidated provides illustrative examples taken from public sector (combined to show the overall financial position); organisations who are leading the way in this area. • what information is included in the published annual reports and accounts for the Our more detailed guide, Understanding central organisations in the Departmental Group, why this information is needed, the role £69bn of the NAO and the extent to which the different parts of the annual reports and DfE spending government’s accounts – an introductory guide for accounts are audited; in 2019-20 those with an oversight role (April 2014), recognises that departmental financial statements can sometimes • the C&AG’s audit opinion on the Department’s accounts, and what it means; be difficult to understand if readers are not familiar • some highlights that draw out key areas of interest in the accounts; and with the accounting and reporting requirements that apply in the central government sector. The guide is an overview of the financial implications of the COVID-19 pandemic, and future • aimed particularly at those who have an oversight role spending commitments, for the Department. in relation to central government’s accounts, such as Throughout this guide, central government financial years are written as, for example, non-executive board members and audit and risk ‘2019-20’ and run from 1 April to 31 March. Educational institutions’ financial and assurance committee members. academic years are written as, for example, ‘2019/20’ and run from 1 September to 31 August for academies and from 1 August to 31 July for colleges and universities. Contents Part One Overview of financial reporting Guide to the education sector annual reports and accounts 2019-20 4 About the Department for Education The Department for Education (the Department) is responsible The Department organises its strategic responsibilities and priorities into five operational groups, one of which (the Education and Skills Funding Agency) is also an executive agency for children’s services and education, including early years, of the Department. maintained schools and academies, further and higher education policy, apprenticeships and wider skills in England. The Department also works with other public bodies including the Teachers’ Pension Scheme and two non-ministerial government departments, Ofsted and Ofqual, to achieve its objectives. Operational groups and their responsibilities Contributing agencies and non-departmental public bodies Early years Oversight of early years and Office of the Schools Adjudicator School Teachers’ Review Standards and Testing Agency Teaching Regulation and schools schools, including academies; (OSA) Helps to clarify the legal Body (STRB) Reviews the pay, (STA) Develops and delivers Agency (TRA) Regulates the group free schools and regional position on admissions policies professional duties and working assessments for children in teaching profession. delivery; the curriculum; and in schools. time of school teachers in education between reception and supply and retention of teachers. England and Wales. the end of key stage 2. Education and Funding of schools, sixth-form Institute for Apprenticeships & Technical Education (IFATE) Skills Funding and further education colleges, Develops, approves, reviews and revises apprenticeships and Agency and oversight of how these technical qualifications with employers. (ESFA) funds are used. Higher Oversight of higher education, Construction Industry Training Engineering Construction Industry Office for Students (OfS) Student Loans Company education further education and Board (CITB) Works with Training Board (ECITB) Works with Distributes government higher (SLC) A non-profit-making and further international education, employers to develop the skills employers and training providers education funding in England government-owned company education including student finance of the construction industry to develop the skills of the and regulates higher education that administers loans and group and careers advice. workforce by providing grants. engineering construction industry providers on behalf of students. grants to students in universities workforce by providing grants. and colleges in the UK. Social care, Oversight of social care, mobility Office of the Children’s Social Mobility Commission (SMC) Social Work England (SWE) mobility and and disadvantage, including Commissioner (OCC) Supports Monitors and promotes social Regulates social workers in disadvantage strategy for special educational the Children’s Commissioner, who mobility (jointly sponsored by England (jointly sponsored by group needs and disabilities; and promotes and protects children’s the Department for Education, the Department for Education reforms to children’s social care. rights in England. the Cabinet Office and the and the Department of Health Department for Work & Pensions). & Social Care). Operations Ensuring the Department is Aggregator Vehicle PLC Raises LocatED Property Limited group sufficiently resourced, efficient finance for private finance (LocatED) Advises on buying and and delivering departmental agreements under the Priority developing sites in England to objectives for the school estate. Schools Building Programme. deliver new school places. Contents Part One Overview of financial reporting Guide to the education sector annual reports and accounts 2019-20 5 How the education sector’s accounts are consolidated The Department is required to prepare consolidated accounts, detailing the resources of The departmental annual report and accounts
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