19 July 2011
Full report: Skills Funding Agency Accounts 2010-11
Amyas Morse, the Comptroller & Auditor General, has not been able to give a clear audit opinion on the 2010-11 accounts of the Skills Funding Agency in relation to how the Agency has accounted for further education colleges.
The Skills Funding Agency was established on 1 April 2010 as one of two successor bodies to the Learning and Skills Council which was abolished on 31 March 2010 and this is the first set of financial statements prepared by the Agency.
Further education colleges’ results have not been consolidated in the Agency’s financial statements. The Agency considers that it would not be cost effective to seek to consolidate the bodies as costs would be incurred by both itself and the FE sector in doing so.
The audit opinion of the C&AG is that, under International Financial Reporting Standards (IFRS), further education colleges should be treated as subsidiaries of the Agency and therefore their financial results should have been consolidated in the Agency’s statements. The C&AG has therefore concluded that the Agency’s accounts do not present a true and fair view.
Apart from this issue, the C&AG identified no other matters that materially impacted on the truth and fairness of the Agency’s accounts and there are no other issues that would have caused him to modify his audit opinion.
19 July 2011
Array, 19 July 2011