ACORN ACADEMY CORNWALL
(A COMPANY LIMITED BY GUARANTEE)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2014
Page Reference and administrative details of the academy, its trustees and advisers 1 - 2
Trustees' report 3 - 14
Governance statement 15 - 17
Statement on regularity, propriety and compliance 18
Trustees' responsibilities statement 19
Independent auditors' report 20 - 21
Independent reporting accountant's assurance report on regularity 22 - 23
Statement of financial activities 24 - 25
Balance sheet 26
Cash flow statement 27
REFERENCE AND ADMINISTRATIVE DETAILS OF THE ACADEMY TRUST, ITS TRUSTEES AND ADVISERS
FOR THE YEAR ENDED 31 AUGUST 2014
Members Acorn Academy Ltd
Mr J-L Janet
Mr S R Page (resigned 6 January 2014) Ms N-J A Macdonald (appointed 1 March 2014) Trustees Mr S R Page (resigned 6 January 2014)
Mr J-L Janet1,2
Mr R J Gasson, Principal1,2,3
Mr M Robinson (resigned 5 March 2014)
Ms K Welton, Parent Trustee (appointed 16 October 2013)
Mrs D Fishbourne (appointed 16 October 2013, resigned 28 February 2014) Mr P Cornish (resigned 26 March 2014)
Mr C Liles Mr J Harvey
Mr N Maslen (appointed 16 October 2013, resigned 17 September 2014) Mr W Randle
Mrs S Goswell
Prof. M J Watkins, Chair (appointed 1 March 2014) Ms N-J A Macdonald (appointed 1 March 2014)
1 Audit Committee 2 Finance Committee 3 Executive Committee
Company registered
number 08418341
Registered office The School House Nine Maidens Four Lanes
Redruth Cornwall TR16 6ND Principal operating
office 6 The Setons, Tolvaddon Energy ParkTolvaddon Camborne
Cornwall TR14 0HX Accounting officer Mr R J Gasson Senior management
team Mr R Brokenshire, Headteacher - Glynn House AP Academy
Mr D Black, Headteacher - The Community and Hospital Education Service Mr R J Gasson, Principal
Mr A Goodman, Business Manager
Mr V Gribbin, Headteacher - Caradon AP Academy Mr G Owens, Headteacher - Penwith AP Academy Mr W Rule, Headteacher - Restormel AP Academy Mr J Stocker, Headteacher - Nine Maidens AP Academy Mr R Triggs, Headteacher - North Cornwall AP Academy
Administrative details (continued)
Independent auditors Bishop Fleming LLP Chartered Accountants Statutory Auditors Salt Quay House 4 North East Quay Sutton Harbour Plymouth PL4 0BN Bankers Barclays plc 86-90 Dalton Road Barrow in Furness Cumbria LA14 1JH
Actuary Hymans Robertson LLP
One London Wall London
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 AUGUST 2014
The Trustees present their annual report together with the financial statements and auditors’ report of the Charitable Company for the year ended 31 August 2014. The annual report serves the purpose of both a Trustees’ report, and a Directors’ report under company law.
The Trust operates 7 special academies in Cornwall. It's academies have a combined pupil capacity of 300 and had a roll of 269 in the school census on 10 January 2014.
STRUCTURE, GOVERNANCE AND MANAGEMENT Constitution
The Academy Trust was incorporated on 25 February 2013 and opened as an Academy on 1 June 2013 and is a company limited by guarantee and an exempt charity. The Charitable Company's Memorandum and Articles of Association are the primary governing documents of the Academy Trust.
The Trustees of Acorn Academy Cornwall are also the directors of the Charitable Company for the purposes of company law.
Details of the Trustees who served throughout the year, except as noted, are included in the Reference and Administrative Details on pages 1 to 2.
Members’ liability
Each member of the Charitable Company undertakes to contribute to the assets of the Company in the event of it being wound up while he/she is a member, or within one year after he/she ceases to be a member, such amount as may be required, not exceeding £10, for the debts and liabilities contracted before they cease to be a member.
Trustees' Indemnities
Trustees benefit from indemnity insurance purchased at the Academy Trust’s expense to cover the liability of the Trustees which by virtue of any rule of law would otherwise attach to them in respect of any negligence, default or breach of trust or breach of duty of which they may be guilty in relation to the Academy Trust, provided that any such insurance shall not extend to any claim arising from any act or omission which the Trustees knew to be a breach of trust or breach of duty or which was committed by the Trustees in reckless disregard to whether it was a breach of trust or breach of duty or not and provided also that any such insurance shall not extend to the costs of any unsuccessful defence to a criminal prosecution brought against the Trustees in their capacity as Directors of the Academy Trust.
In accordance with normal commercial practice the Academy Trust has purchased insurance to protect Trustees and officers from claims arising from negligent acts, errors or omissions occurring whilst on Academy Trust business. The insurance provides cover up to £1,000,000 on any one claim.
TRUSTEES
Method of recruitment and appointment or election of Trustees
On 1 June 2013 the Trustees appointed all the chairs of the previous management committees to sit on the Multi Academy Trust Board. These Trustees were appointed for a term of office that would end when their original term at the predecessor school would have ended, thus ensuring a staggered re-election or replacement process.
The Academy Trust shall have the following Trustees as set out in its Articles of Association and funding agreement:
• up to 10 Trustees who are appointed by members.
• up to 1 LA Trustees who are appointed by Cornwall Council. • up to 2 Parent Trustees who are elected by the Board of Trustees. • up to 1 staff Trustee appointed by the Board of Trustees.
• up to 5 Alternative Provision Academy Trustees who are appointed by the chairmen of the Local Governing Bodies.
Trustees are appointed for a four year period, except that this time limit does not apply to the Principal. Subject to remaining eligible to be a particular type of Trustee, any Trustee can be re-appointed or re-elected.
When appointing new Trustees, the Board will give consideration to the skills and experience mix of existing Trustees in order to ensure that the Board has the necessary skills to contribute fully to the Academy Trust's development.
Policies and Procedures adopted for the Induction and Training of Trustees
The training and induction provided for new Trustees will depend upon their existing experience but would always include a tour of the Academy Trust and a chance to meet staff and pupils. All Trustees are provided with copies of policies, procedures, minutes, accounts, budgets, plans and other documents that they will need to undertake their role as Trustees. As there are normally only two or three new Trustees a year, induction tends to be done informally and is tailored specifically to the individual.
Organisational Structure
The Board of Trustees normally meets once each term. The Board establishes an overall framework for the governance of the Academy and determines membership, terms of reference and procedures of Committees and other groups. It receives reports including policies from its Committees for ratification. It monitors the activities of the Committees through the minutes of their meetings. The Board may from time to time establish Working Groups to perform specific tasks over a limited timescale.
There are 12 committees as follows: Remuneration Committee
• To make any decisions under the Governing Body’s personnel procedures e.g. disciplinary, grievance, capability where the Principal is the subject of the action
• To act as an appeal body to any decisions made by the Principal relating to any member of staff, under the Governing Body’s personnel procedures
• To make any determination or decision under the Governing Body’s General Complaints Procedure for Parents and others
• To make any determination or decision under the Governing Body’s Curriculum Complaints Procedure, in respect of National Curriculum disapplications, and the operation of the Governing Body’s charging policy • To arrange to meet with the Principal to discuss the Head teacher’s performance targets
• To decide, with the support of the Principal, whether the targets have been met and to set new targets annually
• To monitor through the year the performance of SMT members
• To make recommendations to the MAT Board in respect of pay awards for the successful meeting of targets set
• To determine pay levels for all members of SMT, including increments • To act as the appeal committee of the Pay Moderation Sub Group Pay Moderation Sub Group
• To make any decisions under the Governing Body’s agreed pay policy
• Moderate and agree all pay progressions, and start points for new starters below senior management team level, in line with the pay policy
Pupil Discipline Committee
• To consider representations from parents in the case of exclusions of 5 days or less (Committee may not re-instate)
• To consider representations from parents in the case of exclusions totalling more than 5 but not more than 15 school days in one term (meeting to be held between 6th and 50th school days after receiving notice of the exclusion)
• To consider the appropriateness of any permanent exclusion or any exclusion where one or more fixed period exclusions total more than 15 school days in one term or where a pupil is denied the chance to take a public examination (meeting to be held between 6th and 15th school days after receiving notice of the exclusion)
• To ensure that the guidance contained in the ’Improving Attendance and Behaviour’ document is practised in the school, with specific reference to the role assigned to the Governing Body.
TRUSTEES' REPORT (continued)
FOR THE YEAR ENDED 31 AUGUST 2014
Governing Body or relevant committee
• Any items which individual governing bodies may wish to include Audit Committee
• To review the actions and judgements of management in relation to the Academy Trust’s financial statements, it’s operating and financial review
• To review the Academy Trust’s procedures for detecting fraud and whistle-blowing and ensure that arrangements are in place by which staff may, in confidence, raise concerns about possible improprieties in matters of financial reporting, financial control or any other matters
• To review management’s reports on the effectiveness of the systems for internal financial control, financial reporting and risk management
• To monitor the integrity of the Academy Trust’s internal financial controls
• To review the statement in the annual report and accounts on the Academy Trust’s internal controls and risk management framework
• To assess the scope and effectiveness of the systems established by management to identify, assess, manage and monitor financial and non-financial risks
• To review the effectiveness of the financial procedures and controls
• To recommend to the Board of Trustees the appointment or re-appointment of auditors • To give consideration to the audit plan, in advance of the field work
• To review with the external auditors, the findings of their work, including, any major issues that arose during the course of the audit and have subsequently been resolved and those issues that have been left unresolved; key accounting and audit judgements; levels of errors identified during the audit, obtaining explanations from management and, where necessary the external auditors, as to why certain errors might remain unadjusted
• To review and monitor the content of the external auditor’s management letter, in order to assess whether it is based on a good understanding of the Academy Trust’s business and establish whether recommendations have been acted upon and, if not, the reasons why they have not been acted upon Executive Committee
Finance
• To draft the annual budget
• To establish and maintain an up to date 3 year financial plan
• To consider a budget position statement at least termly and to report significant anomalies from the anticipated position to the Governing Body
• To ensure that the school operates within the Financial Regulations of the Academy regulations • To monitor expenditure of all voluntary funds kept on behalf of the Governing Body
• To annually review charges and remissions policies and expenses policies • To make decisions in respect of service agreements
• To make decisions on expenditure following recommendations from other committees and within the budget agreed by the MAT Board
• To ensure that Health and Safety and Safeguarding issues are appropriately prioritised
• To determine whether sufficient funds are available for pay increments as recommended by the Headteachers
• In the light of the Headteacher Performance Management Group’s recommendations, to determine whether sufficient funds are available for increments
Curriculum
• To consider and advise the governing body on standards and other matters relating to the school’s curriculum, including statutory requirements and the School’s Curriculum Policy
• To consider curricular issues which have implications for Finance and Personnel decisions and to make recommendations to the relevant committees or the Governing Body
• To make arrangements for the Governing Body to be represented at School Improvement discussions with the LA and for reports to be received by the Governing Body
• To oversee arrangements for individual governors to take a leading role in specific areas of provision, eg SEN, Literacy, Numeracy. To receive regular reports from them and advise the Governing Body.
Premises
• To advise the Governing Body on priorities, including Health and Safety, for the maintenance and development of the school’s premises
• To oversee arrangements for repairs and maintenance
• To make recommendations to the MAT Board on premises-related expenditure (above £10,000) • To oversee premises-related funding bids
• To oversee arrangements, including Health and Safety, for the use of school premises by outside users, subject to governing body policy
• To establish and keep under review a Building Development Plan • To establish and keep under review an Accessibility plan
Staffing
• To draft and keep under review the staffing structure
• To establish a Salary Policy for all categories of staff and be responsible for its administration and review • To oversee the appointment procedure for all staff
• To establish and review a Performance Management policy for all staff • To oversee the process leading to staff reductions
• To keep under review staff work/life balance, working conditions and well-being, including the monitoring of absence
• To make recommendations on personnel related expenditure to the Finance Committee • To consider any appeal against a decision on pay grading or pay awards, below SMT level Pupil Performance Sub Group x 7
• To challenge and monitor pupil performance, including overall effectiveness, achievement of pupils, quality of teaching, behaviour and safety of pupils, leadership and management
• To challenge monitor and support pupil attendance, progression, attainment, exclusions, admissions and safeguarding referrals
• To act as a pupil placement panel and admissions panel to their setting.
The following decisions are reserved to the Board of Trustees; to consider any proposals for changes to the status or constitution of the Academy and its committee structure, to appoint or remove the Chairman and/or Vice Chairman, to appoint the Headteacher and Clerk to the Trustees, to approve the Annual Development Plan and budget.
The Trustees are responsible for setting general policy, adopting an annual plan and budget, approving the statutory accounts, monitoring the Academy by the use of budgets and other data, and making major decisions about the direction of the Academy, capital expenditure and staff appointments.
The Trustees have devolved responsibility for day to day management of the Academy to the Executive Committee, the Executive Committee implement the policies laid down by the Trustees and report back to them on performance.
TRUSTEES' REPORT (continued)
FOR THE YEAR ENDED 31 AUGUST 2014
The Academy has a leadership structure which consists of the Trustees and the Executive Committee. The aim of the structure is to devolve responsibility and encourage involvement in decision making at all levels.
The Executive Committee (EXC) consists of the Principal, Headteachers of the 7 APAs and the Academy Business Manager. The EXC controls the Academy at an executive level, implementing the policies laid down by the Trustees and reporting back to them. The Principal, Headteachers, Academy Business Manager and Finance Committee are responsible for the authorisation of spending within agreed budgets; a summary of this is in the Scheme of Delegation. Some spending control is devolved to Budget Holders which must be authorised in line with the Scheme of Delegation. The Principal is responsible for the appointment of staff, although appointment panels for leadership posts always include a Governor.
The Principal is the Accounting Officer.
Connected Organisations, including Related Party Relationships
The Academy is sponsored by Acorn Care & Education who through the DfE recognised sponsor programme are responsible for ensuring the performance of the Academy is maintained.
The Academy has strong collaborative links with all schools in Cornwall. OBJECTIVES AND ACTIVITIES
Objects and Aims
The principal object and activity of the Academy is to advance for the public benefit education in the United Kingdom, in particular by establishing, maintaining, carrying on, managing and developing a school, offering a broad range of curriculum for pupils of different abilities, with a strong emphasis on reintegration.
The principal object and activity of the Charitable Company is the operation of Acorn Academy Cornwall to provide free education and care for pupils of different abilities between the ages of 5 and 16.
Acorn Academy Cornwall is an Alternative Provision (AP) Multi Academy Trust (MAT) that comprises of 6 regional AP Academies, The Community and Hospital Education Service (CHES a medical AP Academy) and two Area Nurture Groups. We provide support to enable pupils to reintegrate into mainstream or special schools; or in the last four terms of compulsory education, integration into the world of work or further education.
The aims of the Academy during the period ended 31 August 2014 are summarised below:
• Provide a balanced and broad curriculum that promotes the spiritual, moral, cultural, mental and physical development of pupils and prepares them for the opportunities, responsibilities and experiences of adult life
• Give access to the National Curriculum; provide opportunities for external accreditation, and, for those pupils with specific learning difficulties, effective and personalised programmes.
• Enable pupils to improve their behaviour to a socially accepted level and offer effective and appropriate support for their emotional difficulties
• Respect all pupils and encourage them to become active participants in their own learning, develop confidence, independence, self esteem and express their needs and desires
• Seek effective links with pupils’ families, schools and other professional agencies • Seek effective outcomes with regard to placement
Objectives, Strategies and Activities
Key priorities for the year are contained in our Academy Development Plan which is available from the Academy Office. Improvement focuses identified for this year include:
Increase accountability
Stronger and more defined governance structure
Series of KPIs that are reported on at all levels leading to an improvement in performance (pupils) Attendance
Attainment Progression Placement
Ability to chart own course and respond to need more quickly Ensure better continuity and consistency across the County:
• Move to a whole Academy holistic approach • One referral form, one reporting form. • Removal of statistical anomalies • Core curriculum offer across Cornwall • One standard SEF, SDP format
• Movement towards single central database to provide bench marking opportunities
• Continuity of information/data throughout the service allows students to access provisions on offer across the service more effectively
Realise savings for investment:
• Proper understanding of our costs • Intelligent procurement
• Ability to innovate Pupils:
• Personalised Learning Plans developed according to pupils specific needs e.g catch literacy / numeracy
• Baseline Assessments : Reading/ Spelling, Goal Assessments to determine gaps in learning • Boxall Profiles
• Core curriculum Offer
• KS 2/3 in line with national expectations
• KS4 Curriculum offer : Minimum 5 GCSE including English , Maths, Science, Art, Photography, other qualification according to staff specialism at different AP's
• Off Learning site Learning Opportunities for some, at colleges or other providers, to gain additional qualifications.
Public Benefit
The Trustees confirm that they have complied with the duty in Section 17(5) of the Charities Act 2011 to have due regard to the Charity Commission's general guidance on public benefit in exercising their powers or duties. They have referred to this guidance when reviewing the Academy Trust's aims and objectives and in planning its future activities.
TRUSTEES' REPORT (continued)
FOR THE YEAR ENDED 31 AUGUST 2014
STRATEGIC REPORT
Achievements and Performance
The Academy is in its second year of operation and has exceeded the forecast number of students. The average number of pupils on role during the year was 304, the highest number of students on role at one time was 334. The academy was heavily oversubscribed during the year.
We have successfully moved the CHES office into new premises in Camborne, this has already enabled us to strengthen the administrative offer to CHES APA, resulting in significant improvements to the referral process. Progress and attendance data is strong across all groups, with no significant variation between vulnerable groups. Most pupils show good progress from a previous poor level of engagement. I am able to report an average progress measure across the MAT of 1.8 points progress per term, pupils prior to coming to us were only achieving 0.9 points progress.
ACC Caradon Cyber
school GlynnHouse NineMaidens NorthCornwall Penwith Restormel KS2 Progress 1.6 1.8 1.3 1.95 1.7 1.2 1.4 Progress Prior 0.9 1.2 0.7 1 0.8 0.7 1 English 1.7 1.8 1.2 1.9 2.7 1.1 1.4 Maths 1.6 1.9 1.5 2 1.4 1 1.5 Science 1.4 1.7 1 1.95 1 1.25 1.4 Writing 1.4 1.2 1.9 1.15 1.4 KS3 Progress 1.6 1.8 1.1 1.96 2.5 0.9 1.3 Progress Prior 0.8 1.2 0.4 1 0.8 0.5 0.7 English 1.8 1.6 1.2 2 3.5 1.06 1.3 Maths 1.5 1.4 1.2 2.1 2 0.94 1.3 Science 1.6 2.5 1.2 1.8 2 0.71 1.3 KS4 Progress 2.2 1.8 2.9 1.3 1.96 4.13 1.76 1.5 Progress Prior 0.8 1.2 1.4 0.3 1 0.8 0.5 0.7 English 2.1 1.9 1.1 1.4 2 4.8 2.3 1.4 Maths 2.4 2 4.3 1.6 2.1 3.6 1.6 1.6 Science 2.0 1.1 3.5 0.8 1.8 4 1.4 1.5 Gender Male 1.6 1.8 1.8 1.5 1.9 1.5 1.4 1.4 Female 1.6 1.9 2.4 1.3 1.9 1.6 1.03 1.3 Category Permanent Exclusion 1.7 2.8 1.8 2 1.7 0.53 1.4 School Support 1.9 1.5 1.4 1.1 1.95 4.2 1.3 1.5 Medical 3.6 3.6 0.5 CIC Yes 2.2 1.9 1.32 2 6 1.02 1.1 All Pupils 2.0 1.8 2.9 1.3 2 3.3 1.2 1.4 Statement of SEN Yes 2.2 1.6 3.8 1.3 2 4.3 1.3 1.3 All Pupils 2.0 1.8 2.9 1.2 2.0 3.3 1.2 1.4 Attendance Prior Admission 61% 69% NA 65% 75% 71% 80% 65%
Post Admission 86% 96% 85% 83% 89% 89% 80% 77% Exclusions for last 12 months
Prior Admission 965.5 142.5 0 135 247 134 144 163
Post Admission 129 4 0 24 47 21 42.5 21
The average progress and attainment data for Year 11 leavers puts AAC into the top 20% of performers in the PIXL partnership of similar provisions (29 schools).
Pupils continue to show excellent progression post 16 with a wide variety of options being pursued by our Year 11 leavers, these range from a level 2 Yacht finishing course at college to attending college to study for A levels. Notable successes include one pupil who came to us with a history of non-engagement which included attending 9 secondary schools, who is now undertaking an Art & Design course at college, having achieved a grade B in GCSE Art in just over a term. Another pupil completed Year 11 with us having previously been unwilling to attend school for three years, he is now studying Music at college having had the opportunity to record and perform with us, as part of the curriculum.
These examples are the tip of the iceberg in terms of the enormous steps taken by all stakeholders, not least the pupils themselves, in achieving success for the vast majority of the 90 pupils who finished with us in Year 11. They also do not include those pupils who were reintergrated back into school in year 10 during the academic year 12/13 or in Year 11 who were reintegrated during the academic year 13/14.
We are currently showing a 98% success rate of achieving placements for pupils’ post 16.
Academy CHES Penwith North
Cornwall Restormel NineMaidens Caradon GlynnHouse AACTotal
Number in Cohort 32 9 4 14 10 11 13 93
5 A*-C Grades % 1% 0% 0% 0% 0% 63% 0% 9%
5 A*-G Grades % 6% 66% 0% 42% 70% 91% 10% 40%
5 A*-C with En/Ma % 1% 0% 0% 0% 0% 0% 0% 3%
En A*-C % 61% 44% 25% 8% 0% 40% 0% 25%
Ma A*-C % 38% 11% 0% 25% 0% 0% 0% 11%
En Expected progress % 86% 89% 50% 71% 90% 55% 69% 73%
Ma Expected progress % 76% 87% 50% 71% 70% 55% 62% 67%
Year 11 Average attendance % 88% 85% 88% 83% 87% 90% 81% 86%
Pupil Premium students % 40% 56% 0% 50% 60% 45% 61% 45%
Neet % 8% 0% 0% 0% 10% 0% 0% 2.5%
SEN info on Cohort eg.
Number of statements 0 1 1 1 1 1 3 8
To ensure that standards are continually assessed, the Academy operates a programme of lesson observations, which are undertaken by the Heads and the Senior Leadership Team.
During the year the Academy was successful with two capital bids to the EFA, for works at Glynn House and Nine Maidens.
The introduction of staff bursaries has been a success with three pieces of high quality action research being published.
TRUSTEES' REPORT (continued)
FOR THE YEAR ENDED 31 AUGUST 2014
KPI's & Reporting Requirements
Description KPI/Target DataRequirement
(termly) Pupils reintegrated into an appropriate provision within 2 years Y
100% Staff who have contact with service users who have undergone CRB
checks Y100%
Staff who have contact with service users who have received up to date
Safeguarding Training Y100%
Average attendance (non sick children & young people) improves Y
+ 20% as identified by referring school or is no less than 90%
KS4 Pupils who have been on role at least two terms should achieve 1
GCSE (or equivalent) Y100%
KS4 Pupils who have been on role as least two terms achieving 5 GCSE
(or equivalent ) Y50%
% + Number of pupils re-integrated in to mainstream/appropriate
provision/EET Y100%
Number of permanently excluded pupils who are offered a place in the
APA within 6 days of the formal notification of permanent exclusion Y100% Attendance rates (shown as a percentage of the total possible of sessions
available Yas per OFSTED
guidance
Number of pupils dual registered Y
Number of pupils single registered Y
Average length of stay (Days/Weeks/Years) Y
Average length of stay (yr 10/11) Refers to school year groups. Y
Staff Absence Y
Number of Safeguarding Alerts (specifying what type of alerts) Y Number of Notification Referrals to MARU (Multi Agency Referral Unit) Y
Compliments and Complaints received Y
Finance reports & current budget position Y
Number of staff with relevant teaching qualifications Y Number of staff with relevant training and experience Y
Staff turnover Y
No. of national qualifications offered to Pupils outside of core curriculum Y
Number of fixed term exclusions from APA’s. Y
No Permanent exclusions from APA’s Y
Monitoring of referrals is undertaken and data used to inform service development
Y Pupils are able to demonstrate improved outcomes as per Y OFSTED requirements in the year following exit
Number of Racist incidents reported and how they have been handled Y Number of Homophobic incidents reported and how they have been
handled Y
Number of restrictive physical interventions Y
Number of physical attacks on staff Y
Number of local placements Y
Key Performance Indicators
The main financial performance indicator is the level of reserves held at the Balance Sheet date. In particular, the management of spending against General Annual Grant (GAG) requires special attention - the amount of carry forward is not restricted. In the period under review, £13,456 of GAG income was carried forward.
Total PAN (Pupil Admission Numbers) was 300. The figure was pro-rated in 2013 to reflect the short accounting period.
Measure Result
Cash balances at the year end £990,802
Total unrestricted funds balance £729,112
PAN to teacher ratio 300:58
Teaching to non-teaching staff ratio 58:41
Total income per PAN £20,050
Total GAG per PAN £9,925
Ratio of GAG to total income 1:2
Staff costs per PAN £13,162
Going Concern
After making appropriate enquiries, the Board of Trustees has a reasonable expectation that the Academy Trust has adequate resources to continue in operational existence for the foreseeable future. For this reason it continues to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Going concern policy.
FINANCIAL REVIEW
Half of the Academy's income is obtained from the DfE via the EFA in the form of recurrent grants, the use of which is restricted to particular purposes. The grants received from the DfE during the year ended 31 August 2014 and the associated expenditure are shown as Restricted Funds in the Statement of Financial Activities. The Academy also receives grants for fixed assets from the DfE and are shown in the Statement of Financial Activities as restricted income in the Fixed Asset Fund. The Restricted Fixed Asset Fund balance is reduced by annual depreciation charges over the useful life of the assets concerned, as defined in the Academy’s accounting policies.
During the year ended 31 August 2014, total expenditure of £5,998,523 was covered by recurrent grant funding from the DfE, together with other incoming resources totalling £6,015,152.
At 31 August 2014 the net book value of fixed assets was £5,865,829 and movements in tangible fixed assets are shown in note 17 to the financial statements. The assets were used exclusively for providing education and the associated support services to the pupils of the Academy.
The land, buildings and other assets were transferred to the Academy upon conversion. Land and buildings were valued at £6,093,987, and this valuation was formally approved by the Finance Committee on 16 October 2013. Other assets have been included in the financial statements at a best estimate, taking into account purchase price and remaining useful lives.
The Academy has taken on the deficit in the Local Government Pension Scheme in respect of its non teaching staff transferred on conversion. The deficit is incorporated within the Statement of Financial Activity with details in Note 26 to the financial statements.
Key financial policies adopted or reviewed during the period include the Finance Policy which lays out the framework for financial management, including financial responsibilities of the Board, Head Teacher, managers, budget holders and other staff, as well as delegated authority for spending. Other policies reviewed and updated included Charges and Lettings, Asset Management and Insurance.
TRUSTEES' REPORT (continued)
FOR THE YEAR ENDED 31 AUGUST 2014
The Trustees have appointed Bishop Fleming to undertake a programme of internal checks on the financial controls. The Trustees have received 2 reports from Bishop Fleming during the year in which no significant issues were reported.
Reserves Policy
The Trustees review the reserve levels of the Academy annually. This review encompasses the nature of income and expenditure streams, the need to match income with commitments and the nature of reserves. The Trustees take into consideration the future plans of the Academy, the uncertainty over future income streams and other key risks identified during the risk review.
The Trustees have determined that the appropriate level of free cash reserves should be approximately £300,000. The reason for this is to provide sufficient working capital to cover delays between spending and receipt of grants and to provide a cushion to deal with unexpected emergencies such as urgent maintenance but also to provide for major capital expenditure that may be required within the next 5 years. The Academy’s current level of reserves (total funds less the amount held in fixed assets and restricted funds) is £729,112 of which all is free reserves. The additional reserves are required due to the start up phase of the Academy.
The Trustees have reviewed the future plans of the Academy and have commissioned a report on capital expenditure but no specific items have been decided.
Investment Policy
All funds surplus to immediate requirements are invested to optimal effect. Surplus funds are transferred to deposit account as and when necessary. Where cash flow allows, sums in excess of £100,000 may be invested on deposit for extended periods of between 1 and 3 months.
Due to the nature of funding, the Academy may at times hold cash balances surplus to its short term requirements. No other form of investment is authorised.
Trustees are committed to ensuring that all funds under their control are managed in such a way as to maximise return whilst minimising risk. Any cash not required for operating expenses is placed on deposit at the most favourable rate available from providers covered by the Financial Services Compensation Scheme. Day to day management of the surplus funds is delegated to the Principal and Business manager within strict guidelines approved by the Board of Trustees.
PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties facing the Academy are as follows:
Financial - the Academy has considerable reliance on continued Government funding through the EFA. In the last period 50% of the Academy's incoming resources was ultimately Government funded and whilst this level is expected to continue, there is no assurance that Government policy or practice will remain the same or that public funding will continue at the same levels or on the same terms.
Failures in governance and/or management - the risk in this area arises from potential failure to effectively manage the Academy's finances, internal controls, compliance with regulations and legislation, statutory returns, etc. The Trustees continue to review and ensure that appropriate measures are in place to mitigate these risks. Reputational - the continuing success of the Academy is dependant on continuing to attract applicants in sufficient numbers by maintaining the highest educational standards. To mitigate this risk Trustees ensure that student success and achievement are closely monitored and reviewed.
Safeguarding and child protection - the Trustees continue to ensure that the highest standards are maintained in the areas of selection and monitoring of staff, the operation of child protection policies and procedures, health & safety and discipline.
Staffing - the success of the Academy is reliant on the quality of its staff and so the Trustees monitor and review policies and procedures to ensure continued development and training of staff as well as ensuring there is clear
succession planning.
Fraud and mismanagement of funds - The Academy has appointed a Responsible Officer/internal audit to carry out checks on financial systems and records as required by the Academy Financial Handbook. All finance staff receive training to keep them up to date with financial practice requirements and develop their skills in this area. The Academy has continued to strengthen its risk management process throughout the period by improving the process and ensuring staff awareness. A risk register is maintained, reviewed and updated on a regular basis. PLANS FOR FUTURE PERIODS
The Academy will continue to strive to provide outstanding education and improve the levels of performance of its pupils at all levels. The Academy will continue to aim to attract high quality teachers and support staff in order to deliver its objectives.
The Academy will continue to work with partner schools to improve the educational opportunities for students in the wider community.
FUNDS HELD AS CUSTODIAN TRUSTEE ON BEHALF OF OTHERS
The Academy and its Trustees do not act as the Custodian Trustees of any other Charity. AUDITORS
In so far as the Trustees are aware:
there is no relevant audit information of which the charitable company's auditors are unaware; and
the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
The auditors, Bishop Fleming LLP, are willing to continue in office and a resolution to appoint them will be proposed at the annual general meeting.
Trustees' report, incorporating a strategic report, approved by order of the Board of Trustees, as company directors, on ... and signed on the board's behalf by:
Mr J-L Janet
GOVERNANCE STATEMENT
SCOPE OF RESPONSIBILITY
As Trustees, we acknowledge we have overall responsibility for ensuring that Acorn Academy Cornwall has an effective and appropriate system of control, financial and otherwise. However such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives, and can provide only reasonable and not absolute assurance against material misstatement or loss.
The Board of Trustees has delegated the day-to-day responsibility to the Principal, as Accounting Officer, for ensuring financial controls conform with the requirements of both propriety and good financial management and in accordance with the requirements and responsibilities assigned to it in the funding agreement between Acorn Academy Cornwall and the Secretary of State for Education. They are also responsible for reporting to the Board of Trustees any material weaknesses or breakdowns in internal control.
GOVERNANCE
The information on governance included here supplements that described in the Trustees' report and in the Trustees' responsibilities statement. The Board of Trustees has formally met 5 times during the year. Attendance during the year at meetings of the Board of Trustees was as follows:
Trustee Meetings attended Out of a possible
Mr S R Page 1 1
Mr J-L Janet 5 5
Mr R J Gasson, Principal 5 5
Mr M Robinson 2 2
Ms K Welton, Parent Trustee 1 4
Mrs D Fishbourne 2 2 Mr P Cornish 2 3 Mr C Liles 3 4 Mr J Harvey 4 5 Mr N Maslen 3 4 Mr W Randle 1 4 Mrs S Goswell 3 5
Prof. M J Watkins, Chair 3 3
Ms N-J A Macdonald 4 4
Mr S R Page was appointed a Chair of Trustees on 1 June 2013 and stood down as chair on 6 January 2014. Ms N-J A MacDonald took over as Acting Chair from 9 December 2013 until 25 March 2014.
Prof. M J Watkins was appointed as Chair of Trustees on 25 March 2014. Governance reviews:
The Directors will review the governance structure of the Academy Trust on an annual basis. The next review will be undertaken in September 2015.
The Finance Committee is a sub-committee of the Board of Trustees. Its purpose is the implementation and monitoring of the Academy's financial procedures. It is also responsible for treasury management and monitoring of budgetary control systems.
Attendance at meetings in the year was as follows:
Trustee Meetings attended Out of a possible
Mr R J Gasson 2 3
Mr J-L Janet 3 3
Mr A Goodman (Business Manager) 3 3
The Audit Committee is a sub-committee of the main Board of Trustees. Its purpose is to review the actions and judgements of management in relation to Financial Reporting, monitor the integrity and effectiveness of Internal Controls, assess the scope and effectiveness of the systems for Risk Management, be responsible for the
Attendance at meetings in the year was as follows:
Trustee Meetings attended Out of a possible
Mr R J Gasson 2 3
Mr J-L Janet 3 3
Mr A Goodman (Business Manager) 3 3
THE PURPOSE OF THE SYSTEM OF INTERNAL CONTROL
The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk of failure to achieve policies, aims and objectives; it can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an ongoing process designed to identify and prioritise the risks to the achievement of Academy Trust policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically. The system of internal control has been in place in Acorn Academy Cornwall for the year 1 September 2013 to 31 August 2014 and up to the date of approval of the annual report and financial statements.
CAPACITY TO HANDLE RISK
The Board of Trustees has reviewed the key risks to which the Academy Trust is exposed together with the operating, financial and compliance controls that have been implemented to mitigate those risks. The Board of Trustees is of the view that there is a formal ongoing process for identifying, evaluating and managing the Academy Trust's significant risks, that has been in place for the year 1 September 2013 to 31 August 2014 and up to the date of approval of the annual report and financial statements. This process is regularly reviewed by the Board of Trustees.
THE RISK AND CONTROL FRAMEWORK
The Academy Trust’s system of internal financial control is based on a framework of regular management information and administrative procedures including the segregation of duties and a system of delegation and accountability. In particular, it includes:
comprehensive budgeting and monitoring systems with an annual budget and periodic financial reports which are reviewed and agreed by the Board of Trustees;
regular reviews by the Finance Committee of reports which indicate financial performance against the forecasts and of major purchase plans, capital works and expenditure programmes;
setting targets to measure financial and other performance;
clearly defined purchasing (asset purchase or capital investment) guidelines. delegation of authority and segregation of duties;
identification and management of risks.
The Board of Trustees has considered the need for a specific internal audit function and has decided not to appoint an internal auditor. However, the Trustees have appointed Bishop Fleming LLP, the external auditors, to perform additional checks.
The auditors' role includes giving advice on financial matters and performing a range of checks on the Academy Trust's financial systems. On a twice yearly basis, the auditors report to the Board of Trustees on the operation of the systems of control and on the discharge of the Board of Trustees' financial responsibilities.
GOVERNANCE STATEMENT (continued)
REVIEW OF EFFECTIVENESS
As Accounting Officer, the Principal has responsibility for reviewing the effectiveness of the system of internal control. During the year in question the review has been informed by:
the work of the external auditors;
the financial management and governance self-assessment process;
the work of the executive managers within the Academy Trust who have responsibility for the development and maintenance of the internal control framework.
The Accounting Officer has been advised of the implications of the result of their review of the system of internal control by the Finance and Audit Committees and a plan to ensure continuous improvement of the system is in place.
Approved by order of the members of the Board of Trustees on and signed on its behalf, by:
Mr J-L Janet Trustee
Mr R J Gasson Accounting Officer
As Accounting Officer of Acorn Academy Cornwall I have considered my responsibility to notify the Academy Trust Board of Trustees and the Education Funding Agency of material irregularity, impropriety and non-compliance with EFA terms and conditions of funding, under the funding agreement in place between the Academy Trust and the Secretary of State. As part of my consideration I have had due regard to the requirements of the Academies Financial Handbook.
I confirm that I and the Academy Trust Board of Trustees are able to identify any material, irregular or improper use of funds by the Academy Trust, or material non-compliance with the terms and conditions of funding under the Academy Trust's funding agreement and the Academies Financial Handbook.
I confirm that no instances of material irregularity, impropriety or funding non-compliance have been discovered to date. If any instances are identified after the date of this statement, these will be notified to the Board of Trustees and EFA.
Mr R J Gasson Accounting Officer Date:
TRUSTEES' RESPONSIBILITIES STATEMENT FOR THE YEAR ENDED 31 AUGUST 2014
The Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for preparing the Trustees' report (including the Strategic report) and the financial statements in accordance with the Annual Accounts Direction issued by the Education Funding Agency, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charitable Company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
select suitable accounting policies and then apply them consistently; observe the methods and principles of the Charities SORP;
make judgments and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charitable Company's transactions and disclose with reasonable accuracy at any time the financial position of the Charitable Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charitable Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees are responsible for ensuring that in its conduct and operation the Charitable Company applies financial and other controls, which conform with the requirements both of propriety and of good financial management. They are also responsible for ensuring grants received from EFA/DfE have been applied for the purposes intended.
The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Approved by order of the members of the Board of Trustees and signed on its behalf by:
Mr J-L Janet Trustee Date:
The financial reporting framework that has been applied in their preparation is applicable law, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and the Academies Accounts Direction 2013 to 2014 issued by the Education Funding Agency.
This report is made solely to the Academy Trust's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Academy Trust's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Academy Trust and its members, as a body, for our audit work, for this report, or for the opinion we have formed.
RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND AUDITORS
As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the Academy Trust for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.
Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.
SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Academy Trust's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Trustees; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Trustees' report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
OPINION ON FINANCIAL STATEMENTS In our opinion the financial statements:
give a true and fair view of the state of the Academy Trust's affairs as at 31 August 2014 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006 and the Academies Accounts Direction 2013 to 2014 issued by the Education Funding Agency.
OPINION ON OTHER MATTER PRESCRIBED BY THE COMPANIES ACT 2006
In our opinion the information given in the Trustees' report, incorporating the Strategic report, for the financial year for which the financial statements are prepared is consistent with the financial statements.
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ACORN ACADEMY CORNWALL MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or certain disclosures of Trustees' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Pamela Tuckett FCA (Senior Statutory Auditor) for and on behalf of
Bishop Fleming LLP Chartered Accountants Statutory Auditors Salt Quay House 4 North East Quay Sutton Harbour Plymouth PL4 0BN Date:
In accordance with the terms of our engagement letter dated 14 August 2013 and further to the requirements of the Education Funding Agency (EFA) as included in the Academies Accounts Direction 2013 to 2014, we have carried out an engagement to obtain limited assurance about whether the expenditure disbursed and income received by Acorn Academy Cornwall during the year 1 September 2013 to 31 August 2014 have been applied to the purposes identified by Parliament and the financial transactions conform to the authorities which govern them.
This report is made solely to Acorn Academy Cornwall and EFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to Acorn Academy Cornwall and EFA those matters we are required to state in a report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Acorn Academy Cornwall and EFA, for our work, for this report, or for the conclusion we have formed.
RESPECTIVE RESPONSIBILITIES OF ACORN ACADEMY CORNWALL'S ACCOUNTING OFFICER AND THE REPORTING ACCOUNTANT
The accounting officer is responsible, under the requirements of Acorn Academy Cornwall's funding agreement with the Secretary of State for Education dated 4 March 2013, and the Academies Financial Handbook extant from 1 September 2013, for ensuring that expenditure disbursed and income received is applied for the purposes intended by Parliament and the financial transactions conform to the authorities which govern them. Our responsibilities for this engagement are established in the United Kingdom by our profession's ethical guidance and are to obtain limited assurance and report in accordance with our engagement letter and the requirements of the Academies Accounts Direction 2013 to 2014. We report to you whether anything has come to our attention in carrying out our work which suggests that in all material respects, expenditure disbursed and income received during the year 1 September 2013 to 31 August 2014 have not been applied to purposes intended by Parliament or that the financial transactions do not conform to the authorities which govern them. APPROACH
We conducted our engagement in accordance with the Academies Accounts Direction 2013 to 2014 issued by EFA. We performed a limited assurance engagement as defined in our engagement letter.
The objective of a limited assurance engagement is to perform such procedures as to obtain information and explanations in order to provide us with sufficient appropriate evidence to express a negative conclusion on regularity.
A limited assurance engagement is more limited in scope than a reasonable assurance engagement and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in a reasonable assurance engagement. Accordingly, we do not express a positive opinion. Our engagement includes examination, on a test basis, of evidence relevant to the regularity and propriety of the Academy Trust's income and expenditure.
Our work on regularity included a review of the internal controls policies and procedures that have been implemented and an assessment of their design and effectiveness to understand how the academy complied with the framework of authorities. We also reviewed the reports commissioned by the trustees to assess the internal controls throughout the year.
We performed detailed testing based on our assessment of the risk of material irregularity, impropriety and non-compliance. This work was integrated with our audit on the financial statements where appropriate and included analytical review and detailed substantive testing of transactions.
INDEPENDENT REPORTING ACCOUNTANTS' ASSURANCE REPORT ON REGULARITY TO ACORN ACADEMY CORNWALL AND THE EDUCATION FUNDING AGENCY (continued)
CONCLUSION
In the course of our work, nothing has come to our attention which suggests that in all material respects the expenditure disbursed and income received during the year 1 September 2013 to 31 August 2014 have not been applied to purposes intended by Parliament and the financial transactions do not conform to the authorities which govern them.
Pamela Tuckett FCA (Reporting Accountant) Bishop Fleming LLP
Chartered Accountants Statutory Auditors Salt Quay House 4 North East Quay Sutton Harbour Plymouth PL4 0BN Date:
Unrestricted
funds Restrictedfunds
Restricted fixed asset
funds fundsTotal fundsTotal
Note 2014£ 2014£ 2014£ 2014£ 3 Months Period to 31 August 2013 £ INCOMING RESOURCES
Incoming resources from generated funds:
Transfer from Local Authority
on conversion 2 (4,063) - - (4,063) 6,067,421
Other voluntary income 2 3,256 - - 3,256 500
Activities for generating funds 3 12,235 - - 12,235
Investment income 4 148 - - 148
-Incoming resources from
charitable activities 5 2,773,876 3,139,851 89,849 6,003,576 1,828,899 TOTAL INCOMING
RESOURCES 2,785,452 3,139,851 89,849 6,015,152 7,896,820
RESOURCES EXPENDED Costs of generating funds: Fundraising expenses and
other costs 2,320 - - 2,320 811
Charitable activities 2,338,004 3,086,848 142,507 5,567,359 1,256,563
Governance costs 8 - 16,915 - 16,915 110,178
Other resources expended 9 - - 411,929 411,929
-TOTAL RESOURCES
EXPENDED 10 2,340,324 3,103,763 554,436 5,998,523 1,367,552
NET INCOMING RESOURCES
STATEMENT OF FINANCIAL ACTIVITIES (continued) FOR THE YEAR ENDED 31 AUGUST 2014
Unrestricted
funds Restrictedfunds
Restricted fixed asset
funds fundsTotal fundsTotal
Note 2014£ 2014£ 2014£ 2014£
3 Months Period to 31 August 2013 £
Gross transfers between funds 20 - (33,586) 33,586 -
-NET INCOME FOR THE YEAR 445,128 2,502 (431,001) 16,629 6,529,268
Actuarial gains and losses on defined benefit pension
schemes - (147,000) - (147,000) 23,000
NET MOVEMENT IN FUNDS
FOR THE YEAR 445,128 (144,498) (431,001) (130,371) 6,552,268
Total funds at 1 September 283,984 (98,771) 6,367,055 6,552,268
-TOTAL FUNDS AT 31
AUGUST 729,112 (243,269) 5,936,054 6,421,897 6,552,268
All activities relate to continuing operations.
The Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 28 to 49 form part of these financial statements.
2014 2013 Note £ £ £ £ FIXED ASSETS Tangible assets 17 5,865,829 6,283,159 CURRENT ASSETS Debtors 18 358,406 685,374
Cash at bank and in hand 990,802 541,983
1,349,208 1,227,357
CREDITORS: amounts falling due within
one year 19 (458,140) (768,248)
NET CURRENT ASSETS 891,068 459,109
TOTAL ASSETS LESS CURRENT LIABILITIES 6,756,897 6,742,268
Defined benefit pension scheme liability 26 (335,000) (190,000)
NET ASSETS INCLUDING PENSION
SCHEME LIABILITY 6,421,897 6,552,268
FUNDS OF THE ACADEMY TRUST Restricted funds:
General funds 20 91,731 91,229
Fixed asset funds 20 5,936,054 6,367,055
Restricted funds excluding pension liability 6,027,785 6,458,284
Pension reserve (335,000) (190,000)
Total restricted funds 5,692,785 6,268,284
Unrestricted funds 20 729,112 283,984
TOTAL FUNDS 6,421,897 6,552,268
The financial statements were approved by the Trustees, and authorised for issue, on and are signed on their behalf, by:
Mr R J Gasson Principal
CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2014
2014 2013
Note £ £
Net cash flow from operating activities 22 490,244 566,557
Returns on investments and servicing of finance 23 148
-Capital expenditure and financial investment 23 (41,573) (24,574)
INCREASE IN CASH IN THE YEAR 448,819 541,983
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS FOR THE YEAR ENDED 31 AUGUST 2014
2014 2013 £ £
Increase in cash in the year 448,819 541,983
MOVEMENT IN NET FUNDS IN THE YEAR 448,819 541,983
Net funds at 1 September 2013 541,983
-NET FUNDS AT 31 AUGUST 2014 990,802 541,983
1. ACCOUNTING POLICIES
1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value. The financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP), 'Accounting and Reporting by Charities' published in March 2005, the Academies Accounts Direction 2013 to 2014 issued by EFA, applicable accounting standards and the Companies Act 2006.
1.2 FUND ACCOUNTING
Unrestricted income funds represent those resources which may be used towards meeting any of the charitable objects of the Academy Trust at the discretion of the Trustees.
Restricted fixed asset funds are resources which are to be applied to specific capital purposes imposed by funders where the asset acquired or created is held for a specific purpose.
Restricted general funds comprise all other restricted funds received and include grants from the Department for Education.
Transfers between funds relate to fixed assets purchased from the General Annual Grant (GAG) and other restricted funds, the use of general funds to supplement GAG expenditure in excess of income, and funds to which initial restrictions once applied but ended during the accounting period.
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2014
1. ACCOUNTING POLICIES (continued) 1.3 INCOMING RESOURCES
All incoming resources are included in the Statement of financial activities when the Academy Trust has entitlement to the funds, certainty of receipt and the amount can be measured with sufficient reliability.
Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
General Annual Grant is recognised in full in the year for which it is receivable and any unspent amount is reflected as a balance in the restricted general fund.
Capital grants are recognised when receivable and are not deferred over the life of the asset on which they are expended. Unspent amounts of capital grant are reflected in the balance in the restricted fixed asset fund.
Sponsorship income provided to the Academy Trust which amounts to a donation is recognised in the Statement of financial activities in the period in which it is receivable, where there is certainty of receipt and it is measurable.
The value of donated services and gifts in kind provided to the Academy Trust are recognised at their open market value in the period in which they are receivable as incoming resources, where the benefit to the Academy Trust can be reliably measured. An equivalent amount is included as expenditure under the relevant heading in the Statement of financial activities, except where the gift in kind was a fixed asset in which case the amount is included in the appropriate fixed asset category and depreciated over the useful economic life in accordance with the Academy Trust's policies.
Donations are recognised on a receivable basis where there is certainty of receipt and the amount can be reliably measured.
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Other income, including the hire of facilities, is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.
1. ACCOUNTING POLICIES (continued) 1.4 RESOURCES EXPENDED
Expenditure is recognised in the period in which a liability is incurred and has been classified under headings that aggregate all costs related to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use. Other support costs are allocated based on the spread of staff costs. Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.
Charitable activities are costs incurred in the Academy Trust's educational operations.
Governance costs include the costs attributable to the Academy Trust's compliance with constitutional and statutory requirements, including audit, strategic management and Trustees' meetings and reimbursed expenses.
All resources expended are inclusive of irrecoverable VAT. 1.5 GOING CONCERN
The Trustees assess whether the use of going concern is appropriate, i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Academy Trust to continue as a going concern. The Trustees make this assessment in respect of a period of one year from the date of approval of the financial statements.
The Trustees conclude that it is appropriate to prepare accounts on the going concern basis for the year ended 31 August 2014.
1.6 TANGIBLE FIXED ASSETS AND DEPRECIATION All assets costing more than £1,000 are capitalised.
Where tangible fixed assets have been acquired with the aid of specific grants, either from the government or from the private sector, they are included in the Balance sheet at cost and depreciated over their expected useful economic life. The related grants are credited to a restricted fixed asset fund in the Statement of financial activities and are carried forward in the Balance sheet. Depreciation on such assets is charged to the restricted fixed asset fund in the Statement of financial activities so as to reduce the fund over the useful economic life of the related asset on a basis consistent with the Academy Trust's depreciation policy. Where tangible fixed assets have been acquired with unrestricted funds, depreciation on such assets is charged to the unrestricted fund.
Review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of financial activities.
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2014
1. ACCOUNTING POLICIES (continued)
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Leasehold land and buildings - the lower of 50 years and the lease term Leasehold improvements - 10% straight line
Motor vehicles - 25% straight line Fixtures and fittings - 20% straight line Computer equipment - 20% straight line 1.7 OPERATING LEASES
Rentals under operating leases are charged to the Statement of financial activities on a straight line basis over the lease term.
1.8 TAXATION
The Academy Trust is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Academy Trust is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
