From revised nominal codes to grant accounting and online filing, here are the key considerations for accountants preparing Irish school accounts for the year ended 31 August 2026.
Preparing the 2025/26 FSSU school accounts requires more than updating last year's figures. Accountants and auditors need to review changes to the chart of accounts, identify the correct treatment of new and revised grants, reconcile year-end balances and complete the required reporting documents before submission.
In a recent webinar, Yvonne White and Lorraine Guinan of the Financial Support Services Unit (FSSU) explained the main changes affecting school accounts for the year from 1 September 2025 to 31 August 2026.
Here are the practical points to consider when preparing this year's accounts.
1. Review the updated FSSU chart of accounts
The FSSU updated its chart of accounts for 2025/26 to reflect changes in school funding and accounting requirements.
Among the new nominal codes are:
- Bus escort employer pension expense and other employer pension expense, introduced to account for employer pension contributions.
- Special class non-capital expense, for expenditure relating to special classes in mainstream schools.
- Mobile Phone Storage Solutions Grant Unspent, a balance sheet code for the unspent portion of this grant.
- Auto-enrolment pension control account, for pension contributions outstanding at year-end.
These changes matter when importing a school's trial balance into the FSSU reporting format.
Using an outdated chart of accounts could result in incorrect classifications or additional reconciliation work.
Practical takeaway: Download the 2025/26 chart of accounts from the Auditors and Accountants section of fssu.ie. Review the published changes before finalising your trial balance.
2. Check the treatment of new and revised school grants
Several grants were introduced, revised or paid at different points during the 2025/26 academic year.
The correct accounting treatment depends on the grant's purpose, whether expenditure is capital or non-capital, and whether funding remains unspent.
Primary school grants
The webinar highlighted an increase in the primary capitation grant from €200 to €224 per pupil.
Accountants should also note changes in the timing of capitation payments, including an advance payment made in December 2025.
The Primary Curriculum Grant was another area covered, with funding linked to curriculum developments.
Where a grant is ring-fenced, accountants must identify any unspent balance and apply the relevant FSSU balance sheet code.
Post-primary school grants
The session covered several grants affecting post-primary schools, including:
- Secure Mobile Phone Storage Solutions Grant.
- Science Implementation Grant.
- Revised Science Support Grant.
- Drama, Film and Theatre Studies Grant.
- Climate Action and Sustainable Development Grant.
The Science Support Grant was highlighted as increasing from €13 to €25 per student per qualifying subject, with its scope extended to additional science subjects.
For the Secure Mobile Phone Storage Solutions Grant, the FSSU introduced code 2187 to record unspent funding.
For certain non-capital, ring-fenced grants, code 2171 — Other Non-Capital DE Grant Unspent is relevant.
Practical takeaway: Do not assume every grant received during the year belongs entirely in current-year income. Check the funding conditions, payment date, expenditure and remaining balance.
3. Pay particular attention to the Bus Escort Grant
The FSSU introduced additional accounting guidance for the Bus Escort Grant during 2025/26.
Its treatment depends partly on when the school receives the payment and what the payment covers.
Schools submit a bus escort reconciliation return to the School Transport Section. This information is used to determine subsequent funding.
Where a school receives a payment in August 2026, much of that payment may relate to the following school year and therefore require treatment as income received in advance.
However, the payment may also contain an adjustment for a previous funding shortfall or surplus.
Accountants should therefore avoid treating the entire receipt as either current-year income or deferred income without reviewing the breakdown.
Practical takeaway: Request a breakdown of the Bus Escort Grant payment from the School Transport Section. Use it to distinguish advance funding from adjustments relating to the current year.
4. Review shared utilities, water charges and tax registrations
The webinar also addressed several accounting issues that can be overlooked during the year-end process.
Shared utilities and outstanding balances
Where schools share a campus or utility arrangements, accountants should ensure that amounts owed between schools are correctly reflected at 31 August.
This may involve electricity, gas, water or other shared costs.
Outstanding receivables and liabilities should be reviewed rather than assuming all shared costs have been settled.
Water rates liabilities
The FSSU highlighted the importance of correctly recording water charges and related outstanding liabilities.
Water rates expenditure should be recorded under code 5611 — Water Rates Expense.
Accountants should review whether charges have been billed, paid or remain outstanding at year-end.
VAT and Relevant Contracts Tax
Yvonne White also highlighted cases where schools had not registered or operated Relevant Contracts Tax (RCT) and reverse-charge VAT correctly.
The webinar explained that schools can fall within the principal contractor rules for relevant construction activities, including certain repairs and alterations.
Incorrect registration or treatment can create compliance issues.
Practical takeaway: Review a school's tax registrations and construction-related transactions. Where the correct treatment is uncertain, seek guidance before finalising the accounts.
5. Account for pension auto-enrolment
Pension auto-enrolment was another significant topic for the 2025/26 school accounts.
The webinar explained how the new arrangements affected schools employing staff directly through their boards of management.
This can include ancillary employees and, depending on the circumstances, other individuals paid directly by a school.
The updated chart of accounts includes additional employer pension expense codes and an auto-enrolment pension control account.
Accountants should check that payroll records, employer contributions and outstanding pension liabilities reconcile at the year-end date.
Practical takeaway: Review payroll-related balances and confirm that any outstanding auto-enrolment contributions are recorded correctly at 31 August 2026.
6. Prepare the required reports before submitting the accounts
The year-end process includes more than producing an income and expenditure account and balance sheet.
Lorraine Guinan outlined the documents and information accountants should have ready before using the FSSU online portal.
These include:
- A final, balanced trial balance using the appropriate FSSU nominal codes.
- The completed Board of Management authorisation letter.
- A PDF copy of the accounts signed off by the board.
- The financial report to parents.
- The information required for the online submission.
The FSSU provides an Excel accounts template and supporting instructions. Accountants can enter figures manually or use the available import process.
The financial report to parents is also an important part of the reporting process. The FSSU provides a recommended format to help schools present financial information clearly.
The webinar noted two additional reminders in the Board of Management authorisation letter relating to tax registration and pension auto-enrolment responsibilities.
Practical takeaway: Complete the board approval process and reconcile the trial balance before starting the portal submission. Check that the authorisation letter contains the required information.
7. Plan ahead for the FSSU filing deadline
The FSSU recommends a structured timetable for preparing and approving school accounts.
During the webinar, the suggested milestones included:
- By 30 September: Schools provide the necessary financial information to their accountants or auditors.
- Late November to mid-December: Draft accounts and outstanding queries are returned to the school.
- Before 31 December: Final accounts are provided to the board for formal ratification.
- February 2027: Accounts are submitted through the FSSU portal, subject to confirmation of the precise deadline.
The FSSU warned that late submissions can result in schools being subject to audit and that it does not have authority to grant filing extensions.
Timely submission also matters because financial information submitted to the FSSU supports the preparation of schools' annual returns to the Charities Regulator.
Schools remain responsible for reviewing and verifying their charity annual return.
Practical takeaway: Agree a timetable with each school early, allowing sufficient time for queries, adjustments, board approval and online submission.
Frequently asked questions about FSSU school accounts 2025/26
What is the FSSU deadline for submitting 2025/26 school accounts?
The webinar identifies February 2027 as the filing period for accounts covering 1 September 2025 to 31 August 2026. However, two different dates were mentioned: 20 February and 28 February 2027.
The precise deadline should be confirmed directly with the FSSU before publication or filing. The speakers warned that accounts submitted after the applicable deadline may be subject to audit and that the FSSU cannot grant extensions.
What changes were made to the FSSU chart of accounts for 2025/26?
The updated chart of accounts includes new codes for employer pension contributions, special class non-capital expenditure, unspent Mobile Phone Storage Solutions Grant funding and the auto-enrolment pension control account.
Accountants should use the 2025/26 chart of accounts rather than relying on the previous year's codes. The FSSU provides the updated chart and a list of changes through the Auditors and Accountants section of its website.
How should unspent school grants be treated in the annual accounts?
The accounting treatment depends on the grant's conditions and whether it relates to capital or non-capital expenditure.
The webinar identified code 2171 for unspent amounts relating to certain ring-fenced non-capital Department of Education grants. Other grants, such as the Mobile Phone Storage Solutions Grant, have dedicated codes.
Accountants should reconcile the grant received, eligible expenditure and unspent balance before selecting the correct nominal code.
How should the Bus Escort Grant be recorded at year-end?
The Bus Escort Grant may need to be split between income relating to the current school year and funding received in advance.
Where a payment arrives in August, much of it may relate to the following year. However, it may also contain adjustments for a funding deficit or surplus.
The FSSU recommends obtaining a breakdown of the payment from the School Transport Section so the correct accounting treatment can be established.
What documents are needed for the FSSU online submission?
Accountants should have the final trial balance, the completed Board of Management authorisation letter and a PDF copy of the board-approved accounts ready before submission.
The webinar clarified that the authorisation letter contains information needed for the portal process but does not itself need to be uploaded.
The FSSU also provides an Excel accounts template, an import facility and a portal user manual to support the submission process.
Who is responsible for the school's Charities Regulator annual return?
The school remains responsible for verifying its annual return on the Charities Regulator website.
The webinar explained that the FSSU supplies financial information to the regulator, which is then used to pre-populate the school's return.
The speakers identified 30 June as the annual verification deadline. Accurate FSSU submissions help reduce the number of corrections a school may need to make when reviewing its charity return.
Final thoughts: Accuracy before submission
For accountants preparing school accounts, the 2025/26 reporting cycle requires careful attention to grant classification, payroll liabilities and updated nominal codes.
The most useful approach is to resolve outstanding accounting questions before the board approves the final accounts.
Check the revised chart of accounts, reconcile ring-fenced grants, confirm outstanding liabilities and make sure the required documents are ready.
A well-prepared year-end file makes the submission process easier and helps schools meet their financial reporting responsibilities.
The contents of this article are meant as a guide only and are not a substitute for professional advice. The authors accept no responsibility for any action taken, or refrained from, as a result of the material contained in this document. Specific advice should be obtained before acting or refraining from acting, in connection with the matters dealt with in this article.
