When Should Academies Update Their DRC Valuation?

How often should it be updated?

Although DRC valuations are typically updated every five years, relying solely on this cycle can expose Academy Trusts to compliance risks and financial misrepresentation. Certain changes demand more immediate attention to ensure valuations remain accurate and defensible.

Key reasons to update sooner include:

• Annual Changes in BCIS Cost Indices
  Construction costs are not static. Significant annual shifts in BCIS rates can quickly render previous valuations outdated, affecting the accuracy of asset values reported in your accounts.
• Capital Works and Building Extensions
  Any physical changes — such as new classrooms, sports facilities, or expanded teaching blocks — alter the school’s floor area and configuration. This must be reflected in the valuation to maintain accuracy.
• Internal Reconfiguration
  Where existing spaces are repurposed (e.g. converting halls into classrooms), the functional suitability of the building changes, which can affect both the replacement cost and depreciation profile.
• Incorporation of New Schools into the Trust
  When a new academy joins the Trust, valuations must be updated to ensure consistency across all sites and compliance with group-level financial reporting requirements.
• Preparation for External Audit
  Audit readiness depends on presenting current, well-supported asset valuations. Outdated figures increase the risk of audit queries, delays, or qualifications.
• Strategic Estate Decisions
  Disposals, investment planning, or restructuring of the estate all require a clear understanding of the current value and condition of assets.

Failing to maintain accurate valuations can compromise audit outcomes, weaken financial oversight, and lead to poor strategic decisions. Regular review ensures that your trust’s asset base is reflected fairly and transparently — not just for compliance, but for long-term stewardship of the school estate.