Benefits of adopting the Chart of accounts and Automation
Information for TrustsThis article sits within the Information for Trusts sectionAcademies Chart of Accounts (ACoA)
The ACoA is the Academy sector standard for financial reporting and is currently not mandatory, but the DfE is expecting trusts to adopt the ACoA as the ACoA underpins the automation process. At least 1/3 of trusts have now adopted the ACoA.
Automation
‘Automation’ is the instant transfer of data from the trusts Financial Management System (FMS) to the DfE’s financial returns:
- Accounts return
- Draft trust financial statements
80% of trusts’ FMS providers are estimated to be using automation for their 2024/25 accounts return. The DfE works closely with trusts, FMS providers and external auditors to facilitate you in adopting the ACoA and using automation.
Benefits of adopting the Chart of Accounts
- provides standardisation across trusts and within trusts e.g.:
- improved re-brokerage process
- auditors using one CoA
- improved data quality as less subjective i.e. improved insights via VMFI and benchmarking
- potential to improve financial management processes
- impact of new DfE reporting requirements are reduced
- enables use of automation
Added benefits when using Automation
- time saving for completing the AR in terms of:
- input time (high % of AR auto completed), larger trusts benefit most
- reduction in human error
- hard validation triggers are prevented through mapping and rounding
- make use of draft financial statements
- pre-populates 1/3rd BFR
- end to end audit trail
- DfE receive granular data
- take advantage of new developments
Benefits: A Trust’s perspective
Point to note:
Feedback from Trusts using Automation shows that a high number of trusts found Automation to be faster than manual entry.
Point to note:
Improving trust satisfaction in clearing validations is a key metric in showing the success of automation. The automated mapping should reduce the number of validations triggered.
Point to note:
Overall user satisfaction when completing the accounts return by ‘Automated trusts’ shows a higher percentage of satisfaction.
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