Important Updates for Academy Trusts
News, updates and views on property valuation in the education and public sector.
Recent changes to the Academies Accounts Direction mark a significant shift in how academy trusts should approach property valuations.
Changes to Academy Trust Property Valuations
School buildings and their assets are specialist, purpose-built environments designed to support education. For Multi-Academy Trusts (MATs), managing a diverse portfolio across multiple locations adds another layer of complexity, requiring careful oversight and strategic planning.
Accurately valuing these assets is crucial for financial planning, regulatory compliance, and informed decision-making. A precise understanding of property values ensures academy trusts can effectively manage their estates, plan for future investments, and meet financial reporting obligations in line with statutory requirements.
Engaging RICS-accredited valuers provides independent, market-aligned assessments that not only minimise financial risk but also ensure compliance with government regulations and accounting standards.
What Has Changed?
Updates in the Academies Accounts Direction (AAD) 2024 and the Academy Trust Handbook 2024 mark a significant shift in how academy trusts should approach property valuations.
The Shift Away from DfE Figures
Historically, many schools have relied on valuations provided by the Department for Education. New government guidance now emphasises the need for independent external valuations, particularly for trusts with long leasehold premises.
Why the Guidance Changed
The DfE's valuations were primarily intended for national assessments and may not always reflect local market conditions. This can lead to discrepancies in financial statements and impact a trust's financial reporting.
What Independent Valuation Delivers
The AAD 2024 encourages trusts to obtain valuations from independent professionals to ensure more accurate financial reporting, compliance with accounting regulations, and transparency in asset valuation.
How Should Trusts Determine Property Value?
To align with the new guidance, trusts should seek external valuations through one of the following routes:
Independent Chartered Surveyor
Recommended for accuracy and compliance — an independent, RICS-regulated valuation prepared specifically for your trust.
Relevant Local Authority
Where applicable, a valuation obtained through the local authority responsible for the property.
Construction Company or Transferring Trust
An asset valuation supplied by a construction company or by a transferring academy trust.
Compliant With the Latest Guidance
At Strawhorn Surveyors, we specialise in providing RICS Red Book-compliant valuations tailored to the specific requirements of academy trusts. Our valuations ensure compliance with the latest AAD 2024 guidance, giving trusts confidence in their financial reporting.