Medr/2025/05: Accounts direction for further education colleges in Wales for 2024/25

1. Introduction

1.1 Accounts direction

This accounts direction advises colleges of Medr’s requirements for the format of their audited financial statements for the year 2024/25.

We use the term “college” to refer to further education and sixth-form college corporations, established under the provisions of the Further and Higher Education Act 1992.

Medr publish the accounts direction on behalf of the Welsh Government, who are the principal regulator of Welsh further education colleges as exempt charities. Compliance with this accounts direction is a requirement of colleges terms of funding with Medr and other public funders.

Colleges in Wales remain subject to the Welsh Government’s Financial Memorandum until Medr’s own regulatory framework comes into effect.

References to Medr are assumed to refer to the collective responsibility to Welsh Government via Medr.

This accounts direction for primarily for use by:

a) principals, chief executives / accounting officers, and finance directors
b) governors
c) external auditors / reporting accountants

1.2 Background

Paragraph 36 of the Financial Memorandum between the Welsh Government and institutions, issued in March 2015 (guidance document no: 160/2015), requires institutions to comply with the Accounts Direction issued periodically by Medr. The direction will cover information to be contained in the financial statements, the manner in which they are to be presented, the methods and principles according to which they are prepared, and that they will be in accordance with UK Generally Accepted Accounting Practice and the Statement of Recommended Practice: Accounting for Further and Higher Education 2019 (‘FE and HE SORP’).

In issuing this direction Medr wishes to ensure the form, content and disclosures within institution’s financial statements follow good practice, are consistent across the sector and meet any specific requirements of the Welsh Government.