DfE and ESFA financial-return requirements explained

For academy trusts, financial reporting isn’t just an annual task — it’s a continuous cycle of accountability. Throughout the year, trusts are required to submit a range of financial returns to the Department for Education (DfE) and the Education & Skills Funding Agency (ESFA), each serving a different purpose but all playing a role in demonstrating good governance and responsible use of public funds.

For finance teams, particularly bursars and trust CFOs, these requirements can feel complex. Deadlines overlap with audit season, census submissions, internal reporting and day-to-day operational pressures. Understanding what each return is for — and how they fit together — is key to staying compliant without unnecessary stress.

This article explains the main DfE and ESFA financial-return requirements, why they matter, and how trusts can approach them with confidence.

Why financial returns matter

DfE and ESFA returns aren’t simply administrative exercises. Together, they give regulators a clear picture of how trusts are performing financially, where risks may exist, and how funding is being used across the sector.

For trusts themselves, these returns provide structure. They support transparency with trustees and auditors, reinforce internal scrutiny, and encourage consistent financial discipline across schools. When handled well, they become part of a healthy finance rhythm rather than a last-minute scramble.

Audited financial statements: the foundation

The audited financial statements sit at the heart of the reporting cycle. Covering the financial year ending 31 August, they provide a formal, independently verified record of the trust’s financial position.

By 31 December, trusts must submit their audited accounts, audit findings report and internal scrutiny report to the DfE. Trustees must approve these documents before submission, and the signed accounts must then be published on the trust’s website by 31 January.

This submission underpins much of what follows. A clean audit, supported by clear records and consistent coding, makes every subsequent return easier.

The Academies Accounts Return (AAR)

The Academies Accounts Return is one of the most detailed returns trusts complete. Submitted in January (for 2024–25, the deadline is 28 January 2026), it takes information from the audited accounts and breaks it down into a structured format used by the ESFA for analysis and benchmarking.

The AAR allows the DfE to compare trusts consistently, understand spending patterns and assess financial sustainability across the sector. For trusts, it often feels technical and time-consuming — particularly if data has to be reworked or re-mapped late in the process.

Approached calmly, with accurate source data and consistent structures, it becomes far more manageable and far less disruptive to the rest of the spring term.

Budget Forecast Return (BFR): looking ahead

While the AAR looks back, the Budget Forecast Return looks forward. Typically due in late August, the BFR asks trusts to submit their financial forecasts for the coming years.

This return is crucial for the ESFA’s oversight of financial resilience. It highlights potential pressures early and allows support to be targeted where needed.

For trusts, producing a reliable BFR depends heavily on in-year visibility. Forecasting is far easier when finance teams can see current performance clearly, understand trends and base assumptions on live data rather than historic snapshots.

Estates and census data: the wider picture

Not all financial returns focus purely on income and expenditure. Submissions such as the Land & Buildings Collection Tool, usually due in December, help the DfE understand the condition and ownership of the academy estate.

School census returns, completed three times a year, also play a significant financial role. Census data influences funding allocations, pupil-related grants and longer-term planning assumptions. While often seen as operational, these returns directly affect a trust’s financial position.

Companies House and public accountability

For trusts required to file accounts as companies, there is an additional obligation to submit accounts to Companies House, usually by 31 May. This sits alongside — not instead of — DfE submissions and reinforces the public accountability of academy trusts.

Seeing the full cycle

Taken together, these requirements form a clear annual cycle:

• Autumn brings audit activity and finalisation of accounts
• Winter focuses on submission and publication of audited information
• Spring centres on the AAR and mid-year financial reviews
• Summer shifts attention to forecasting, planning and year-end preparation

Trusts that understand this rhythm — and prepare steadily throughout the year — avoid the peaks of pressure that come from leaving everything until the deadline.

How XfE supports the process

Managing these returns isn’t about doing more work — it’s about having clearer visibility and more consistent data.

XfE supports schools and trusts by providing real-time reporting across academies and departments, alongside in-system KPIs that help finance teams understand performance as it happens. Clearer workflows for bank, creditors and VAT checks support accuracy throughout the year, while consistent coding structures reduce rework at audit and return time.

The result is a calmer, more controlled approach to compliance — one where financial returns become part of routine finance management rather than a disruption to it.

Final thoughts

DfE and ESFA financial-return requirements are a constant for academy trusts. While the volume of reporting can feel daunting, understanding the purpose behind each return — and how they connect — makes the process far easier to manage.

With the right preparation and the right systems in place, trusts can meet their obligations confidently, support strong governance and free up time to focus on what matters most: running schools effectively.

If you’d like to see how XfE helps trusts manage this reporting cycle more smoothly, we’d be happy to show you.

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