The Chart of Accounts (CoA) is the backbone of financial management for academies in England. It provides a standardized framework for recording, reporting, and analysing financial transactions. The 202122 version reflects updates to government guidance, new funding streams and the growing need for clear segregation of costs. The CoA is organised into five main categories, each identified by a twodigit prefix. Within each category, subaccounts are coded using further digits, creating a hierarchical sixdigit structure (e.g.,010010). The categories are: Each main category is broken down further to capture the level of detail required by the ESFAs Funding, Monitoring and Reporting" (FMR) framework. Implementing the chart involves several steps: The ESFA requires academies to submit a range of quarterly and annual returns. The CoA provides the data feeds for the following key reports: Accurate coding ensures that each line item appears in the correct section of these returns, reducing the risk of noncompliance penalties. While the 202122 CoA remains in force, the DfE is reviewing it for the 202425 academic year. Anticipated changes include: Academies are encouraged to adopt a flexible charting approach now, allowing for smooth integration of these future codes.Academies Chart of Accounts202122
Why a Standardised Chart Matters
Structure of the 202122 CoA
Prefix Category Description 01 Revenue (Funding) All income received from the ESFA, local authorities, and other public sources. 02 Revenue (NonFunding) Income from private sources, charitable donations, premises hire, etc. 03 Expenditure Direct Costs Costs directly attributable to teaching and learning, such as staff salaries, educational supplies. 04 Expenditure Indirect Costs Support services, administration, building maintenance, and other overheads. 05 Capital & Asset Management Capital projects, asset acquisition, depreciation and disposals. Key Account Groups for 202122
01 Revenue (Funding)
02 Revenue (NonFunding)
03 Expenditure Direct Costs
04 Expenditure Indirect Costs
05 Capital & Asset Management
Applying the CoA in Practice
Reporting Requirements Linked to the CoA
Common Issues and How to Resolve Them
Issue Impact Resolution Incorrect use of 010010 for nonpupil funding Misstated revenue, potential overallocation of pupil premium. Introduce validation rule: only transactions marked pupil funding may use 010010. Mixing capital and revenue expenditures in 040200 Distorts indirect cost ratios, hampers capital budgeting. Separate capital works into 05*** accounts and train users on purposebased coding. Duplicate entries for the same grant Inflated income, audit queries. Implement a unique grant reference field and enforce onetoone mapping. Missing depreciation charge Balance sheet assets overstated, cost recovery not reflected. Set up automatic depreciation runs linked to 050400. Future Developments
Useful Resources
**Workforce Leadership Academies Local Costs** and Reference File Download Link
