2024 is set to be a year of change – with some 70 elections due to take place worldwide the political landscape is far from certain. However, we are expecting 2024 to offer the FE Sector some elements of certainty!
Accounting year end
Following reclassification, HM Treasury (HMT) notified the ESFA that is would seek to change the financial year end for further education institutions to 31 March. The ESFA has consulted on the proposed change and has responded to HMT notifying them of the operational difficulties in implementing such a change. A working group has been formed and is looking at how an assurance framework can be implemented that would allow the July year end to be retained whilst providing interim assurance to HMT that can be incorporated into the Whole Government Accounts. We hope that this project will conclude this year and a decision will be made in time to be effective from 2026.
Financial Handbook
As you will see from our article later in this Digest, the Financial Handbook was released in March 2024 and contained nothing new! Indeed it was a helpful consolidation of existing rules and regulations that also now include the Managing Public Money requirements of reclassification.
VAT126 Status
We had hoped this would be a key budget announcement and some very welcome news for the sector, but alas, there was little positive news from the Spring 2024 Budget. We remain optimistic that the FE Sector will be given the same VAT status that the academy sector currently enjoys.
