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News – 10.04.24
Form PF: Are you up to speed with the latest developments?
Through this insight we will bring to your attention the main changes in a bitesize manner so that you can stay abreast of the requirements as they may apply to your firm. … Read more
Insight
Tax relief on heritage assets: Am I eligible?
For assets considered to be of national heritage, relief from Capital Gains Tax and Inheritance Tax is available. … Read more
Upcoming event – 29.04.24
Governance code updates and advice for Further Education colleges from Buzzacott and the ESFA
Join Buzzacott and the ESFA for a governance update for further education colleges … Read more
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130 Wood Street, London, EC2V 6DL
enquiries@buzzacott.co.uk T +44 (0)20 7556 1200
The reclassification of further education institutions to the Central Government Sector will mean that colleges will now be subject to the framework for financial management set out in Managing Public Money (MPM). Whilst many aspects of MPM are already incorporated within existing funding arrangements between colleges and the ESFA, there will be some key changes in relation to borrowing, whereby consent will be needed from the DFE for any amendments to existing or new borrowing from the private sector. Other areas impacted include awarding of senior staff pay going forward with upper limits on pay awards and severance payments, and permission for write-off of debts over a certain threshold.
Some of these changes will have an immediate impact for colleges including the finalisation of the 2021/22 accounts and we will liaise with each of our colleges over the coming days to support them in the process. Other changes will take time to implement such as the consolidation of colleges’ accounts within Government accounts by 2024. We will be able to assist colleges in meeting this additional compliance requirement as we have extensive experience of this through our involvement with the academy sector whereby academies’ accounts are consolidated within Government accounts through the process of Academies Accounts Returns (AARs).
The one change that was desired by colleges was the ability to recover VAT. However, this is not related to the ONS reclassification and colleges will continue not being able to recover this for the time being.
The DFE will be seeking to compile a comprehensive Colleges’ Financial Handbook likely to be effective from August 2024. However, to ease the transition, over the coming months, the ESFA will be issuing “bite-sized” guidance for colleges on what the changes will mean for them. As these are issued, the FE Group within the Charity and Education team at Buzzacott will support our clients through the dissemination of relevant updates including timely and practical advice and guidance.
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The reclassification of further education institutions to the Central Government Sector will mean that colleges will now be subject to the framework for financial management set out in Managing Public Money (MPM). Whilst many aspects of MPM are already incorporated within existing funding arrangements between colleges and the ESFA, there will be some key changes in relation to borrowing, whereby consent will be needed from the DFE for any amendments to existing or new borrowing from the private sector. Other areas impacted include awarding of senior staff pay going forward with upper limits on pay awards and severance payments, and permission for write-off of debts over a certain threshold.
Some of these changes will have an immediate impact for colleges including the finalisation of the 2021/22 accounts and we will liaise with each of our colleges over the coming days to support them in the process. Other changes will take time to implement such as the consolidation of colleges’ accounts within Government accounts by 2024. We will be able to assist colleges in meeting this additional compliance requirement as we have extensive experience of this through our involvement with the academy sector whereby academies’ accounts are consolidated within Government accounts through the process of Academies Accounts Returns (AARs).
The one change that was desired by colleges was the ability to recover VAT. However, this is not related to the ONS reclassification and colleges will continue not being able to recover this for the time being.
The DFE will be seeking to compile a comprehensive Colleges’ Financial Handbook likely to be effective from August 2024. However, to ease the transition, over the coming months, the ESFA will be issuing “bite-sized” guidance for colleges on what the changes will mean for them. As these are issued, the FE Group within the Charity and Education team at Buzzacott will support our clients through the dissemination of relevant updates including timely and practical advice and guidance.
If you're concerned about the impact these changes will have upon your further education college, sixth form or other designated institution, simply fill out the form below and one of our education experts will be in touch.
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