What Needs to Be Included in the Annual Internal Scrutiny Summary Report?
Internal scrutiny is a vital part of governance for academy trusts, ensuring accountability and compliance while identifying opportunities for improvement. It provides assurance on the financial and non-financial risk management framework. As trusts prepare their annual internal scrutiny summary report, understanding the requirements and best practices is crucial to meeting the expectations of trustees, auditors, and regulators.
Why Is the Annual Internal Scrutiny Report Important?
The annual internal scrutiny summary report plays a pivotal role in demonstrating an academy trust’s commitment to effective governance and risk management. It consolidates the findings of internal reviews conducted throughout the year, demonstrating the trust's commitment to maintaining robust financial and operational controls. The report provides assurance to the board of trustees and external stakeholders, including the ESFA, that the trust is managing risks appropriately and maintaining robust financial and operational controls.
What Should the Report Include?
Here’s what you’ll need to cover:
Overview of Internal Scrutiny Activities
- A summary of the internal scrutiny work undertaken throughout the year.
- The scope of reviews conducted (e.g., financial systems, payroll, governance, cyber security, safeguarding, human resources, business continuity planning).
- Key focus areas or high-risk elements identified at the start of the year.
Key Findings and Recommendations
- A concise summary of findings from each area of scrutiny.
- Identification of any control weaknesses or process inefficiencies.
- Recommendations for improvement and the trust’s planned actions.
- Status of recommendations carried forward from previous years, to demonstrate the trust’s direction of travel against previous findings.
Best Practices for Preparing the Report
The annual summary report should provide a concise overview of internal scrutiny work conducted during the year. It should consolidate findings and recommendations in one place, and reflect on the trust’s progress in implementing previous assurance findings and action plans.
How SBS Can Support Your Trust
SBS offers comprehensive internal scrutiny services designed to align with statutory requirements and best practices. Our professionally qualified education sector specialists deliver assurance through thorough reviews and actionable advice. Here’s what sets us apart:
Our Approach
- Independent and Objective: We provide unbiased assessments of financial and non-financial controls, ensuring compliance and transparency.
- Tailored Programmes: Our programme of reviews is customised to meet the unique needs of each trust. We are experienced and qualified to offer a broad range of scrutiny that aligns with your strategic priorities. This includes areas such as governance, Human Resources, financial systems, safeguarding, SEN, pupil attendance, IT, data and cyber security, business continuity planning and many more. Your trust can chose a programme of scrutiny that addresses the specific challenges and priorities of your trust.
- Risk-Focused: High-ranking risks are revisited to ensure that recommended actions are effectively implemented and achieving desired outcomes.
- Robust Methodology: Our consultants use a triangulated approach, testing sample transactions and verifying that systems align with documented policies and procedures.
Changes to Internal Scrutiny in 2025
From September 2025, academy trusts with an income over £50 million will be required to use accredited auditors for internal scrutiny. This change aims to enhance governance and ensure greater accountability for trusts managing significant public funds.
What Should Trusts Do Now?
- Plan Ahead: Start reviewing your internal scrutiny processes and explore accredited providers, like SBS.
- Budget for Change: Factor in potential costs of engaging accredited auditors.
- Adapt Processes: Prepare for new methodologies and reporting standards.
Download Our Internal Scrutiny eBook
Looking for more detailed guidance on preparing your annual internal scrutiny summary report? SBS’s FREE Internal Scrutiny eBook provides a comprehensive overview of the process, including actionable tips and best practices to enhance your trust’s governance.
The annual internal scrutiny summary report is more than a compliance requirement; it’s an essential tool for demonstrating good governance and driving continuous improvement. With the upcoming changes in 2025, it’s crucial for trusts to stay ahead and ensure their processes meet evolving standards.
SBS’s Internal Scrutiny services provide the expertise, flexibility, and assurance your trust needs to prepare a robust and compliant report. Contact us today to find out how we can support your internal scrutiny needs.
