MEASHAM CHURCH OF ENGLAND PRIMARY SCHOOL ACADEMY TRUST

Transcription

1 Registered number: MEASHAM CHURCH OF ENGLAND PRIMARY SCHOOL ACADEMY TRUST ANNUAL REPORT AND FINANCIAL STATEMENTS

2 CONTENTS Page Reference and administrative details of the academy, its trustees and advisers 1 Trustees' report 2-8 Governance statement 9-11 Statement on regularity, propriety and compliance 12 Trustees' responsibilities statement 13 Independent auditors' report Independent reporting accountant's assurance report on regularity Statement of financial activities Balance sheet 20 Cash flow statement 21 Notes to the financial statements 22-43

3 REFERENCE AND ADMINISTRATIVE DETAILS OF THE ACADEMY, ITS MEMBERS/ TRUSTEES AND ADVISERS Trustees J Parkinson, Chair 1 H Phillips, Vice Chair 1,2,4 M Fisher, Headteacher 1,2,3,4 H Carter 3 S Plant 2,3 V Elphick 1 G Brooks 1 S Jones 3,4 M Gibbon (resigned 19 December 2014) 2 A Timbrell 3 N Walters (resigned 28 January ) 3,4 T Aston-Wright 2 L Masters T Hogan (appointed 25 March ) H Wileman (appointed 25 March ) Members The Diocese of Leicester Educational Trust G Brooks S Jones 1 Finance & personnel committee 2 Health & safety committee 3 Safeguarding committee 4 Audit committee Company registered number Principal and registered office Senior management team Independent auditors Bankers Bosworth Road Measham Swadlincote Leicestershire DE12 7LG M Fisher, Headteacher Clear & Lane Limited Chartered Accountants 340 Melton Road Leicester LE4 7SL Lloyds Bank Plc 20 Belvoir Road Coalville Leicestershire LE67 3QH Page 1

4 TRUSTEES' REPORT The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the audited financial statements of Measham Church of England Primary School Academy Trust (the Academy) for the year ended 31 August. The Trustees confirm that the Annual report and financial statements of the Academy comply with the current statutory requirements, the requirements of the Academy's governing document and the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" issued in March The Trust operates an Academy for pupils aged 4 to 11 serving a catchment area in Measham. It has a pupil capacity of 245 and had a roll of 193 in the school census on January 15. STRUCTURE, GOVERNANCE AND MANAGEMENT Constitution The Academy Trust 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 charitable company was incorporated on 26 October The school converted to Academy status on 1 December 2012 when its operations, assets and liabilities were transferred to the Academy from the Local Authority. The Governors act as the Trustees for the charitable activities of Measham CEPS Academy Trust Limited and are also the directors of the charitable company for the purposes of company law. The charitable company is known as Measham CEPS. Details of the Trustees who served throughout the year except as noted are included in the reference and administrative details on page 1. Members' liability Each member of the charitable company undertakes to contribute to the assets of the charitable company in the event of it being wound up while they are a member, or within one year after they cease to be a member, such amount as may be required, not exceeding 10, for the debts and liabilities contracted before they ceased to be a member. Method of recruitment and appointment or election of Trustees Trustees are appointed as follows: Foundation Trustees Parent Trustees Staff Trustees Community Trustees Through nomination and appointment by the Diocese Through open election for all eligible parents or guardians of pupils who attend Measham CEPS Through open election for all eligible members of staff working at Measham CEPS Through nomination by the board of Trustees of Measham CEPS. We would seek to appoint Trustees with relevant background experience to complement the existing Trustee qualifications Policies and procedures adopted for the induction and training of Trustees We expect all Trustees to undertake training as appropriate to their work at the school. New Trustees will be provided with an induction programme delivered partly in house and partly through external sources as required. A log is kept of all Trustees training and is able for review with the Link Governor. Page 2

5 Structure Governance and Management TRUSTEES' REPORT (continued) The Governors who are also the charity Trustees are responsible for the overall management and control of the school and normally meet 6 times a year. The work of reviewing and monitoring most of their policies is delegated to members of the Finance & Personnel, Curriculum and the Health & Safety Committees. These meet at least once each term and work under the chairmanship of a Trustee appointed at the first committee meeting each calendar year. Terms of reference of these committees are agreed annually at this meeting. The Chair of Trustees is responsible for co ordinating the work of the Trustees and their committees. The School Business Manager is responsible for the preparation of accounts. All Trustees give their time freely and no remuneration and no expenses were paid in the year. Organisational structure The Trustees determine the general policy of the school. The day to day running of the school is delegated to the Headteacher, supported by senior staff. The Headteacher undertakes the key leadership role overseeing educational, pastoral and administrative functions in consultation with senior staff. The day to day administration is undertaken within the policies and procedures approved by the Trustees which provide for only significant expenditure decisions and major capital projects to be referred to the Trustees for prior approval. The Headteacher oversees the recruitment of all staff. The Headteacher is an ex officio Trustee, Principal Accounting Officer and attends all meetings. Connected organisations, including related party relationships The Headteacher works with the local school group called Ibstock Group 24 and the Forest Way Teaching School Alliance. This enables him to keep abreast of current educational matters and network with other schools to share expertise, knowledge, experience and training. The school has a connected charity, Measham Parents & Friends Association which was established for the purpose of supporting the school in a manner as determined by its own independent board. These are under the control of this independent board, not the Academy. In line with the Academies Accounts Direction 2014 to (SORP 2005) some summary details of this charity s activities are included in note 27 to the financial statements. Measham CEPS Academy Trust is a Voluntary Controlled School meaning that the Diocese of Leicester Educational Trust have the right to appoint up to 25% of the total Trustee board. Risk management The Trustees are responsible for the overseeing of the risks faced by the school. Detailed considerations of risk are delegated to the senior leadership team of the school. Risks are identified, assessed and controls established throughout the period. A formal review of the school s risk management process will be undertaken on an annual basis. Risk is managed under the headings of strategic and reputational, operational, employment and financial as set out in the risk management register. Trustees' indemnities In accordance with normal practice the school has purchased insurance to protect the Trustees and officers from claims arising from negligent acts, errors or omissions whilst on school business. The cover under the policy is 3 million and in the year under review the sum of 1,360 was paid. Page 3

6 TRUSTEES' REPORT (continued) Principal activities Measham CEPS Academy Trust s purpose is to provide high quality learning activities to pupils at the school and the wider community of which we serve. OBJECTIVES AND ACTIVITIES Objects and aims Measham CEPS Academy Trusts object is specifically restricted to the following: To advance for the public benefit education in the United Kingdom, in particular but without prejudice to the generality of the foregoing by establishing, maintaining, carrying on, managing and developing a school offering a broad and balanced curriculum. To promote for the benefit of individuals living in Measham and the surrounding area who have need by reason of their age, infirmity or disability, financial hardship or social and economic circumstances or for the public at large the provision of facilities for recreation or other leisure time activities in the interests of social welfare and within the object of improving the condition of the said individuals. Objectives, strategies and activities Our mission statement is where happy children flourish. Activities for achieving objectives We are committed to providing an environment where happy children flourish and to provide a caring, stimulating and safe school where achievements are celebrated and everyone is valued and shown respect. We do this through: Encouraging the development of the children intellectually, physically, artistically and spiritually Encouraging the children to value the achievement of others as well as their own Encouraging good manners and positive behaviour through teaching and by example Providing a curriculum, which seeks to develop the child whilst recognising that English, Mathematics, Science and Information Technology have priority within the delivery of the national curriculum Supporting and developing the needs of staff to achieve their full potential Fostering partnerships within our whole school community, communicating clearly with everyone to secure their contributions Treating everyone as an individual, recognising the requirements of our equal opportunities statement Public benefit Measham CEPS Academy Trust is a charitable trust which seeks to benefit the public throughout the pursuit of its stated aims. The Trustees have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission. Page 4

7 TRUSTEES' REPORT (continued) STRATEGIC REPORT ACHIEVEMENTS AND PERFORMANCE Going concern After making appropriate enquiries, the Board of Trustees has a reasonable expectation that the Academy 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 accounting policies. Key financial performance indicators Key Stage 1 The % of children attaining level 2 at the end of Key Stage 1 in is: Reading 88 Writing 88 Maths 92 Key Stage 2 The % of children attaining level 4 at the end of Key Stage 2 in is: Reading 81 Writing 75 Maths 74 Other achievements and activities in the 2014/15 academic year have included: Music; All of the year 4 children have taken Guitar instrument tuition with Leicestershire Music Services under the WCET project. All of our year 5 children have taken guitar tuition as a second year continuation to the WCET project with Leicestershire Music Service. The Choir performed at the Young Voices concert at the LG Arena in Birmingham Residential Trips for years, 2, 4 & 6. The year 6 children went to London for 3 days. The year 4 children went to the Kingswood site at Dearne Valley for 3 days. The year 2 went to Beaumanor Hall, Leicestershire - 2 groups went over night and 2 full days. Sport; A variety of Interschool & County Sporting events, including some specially for children with special needs. We also had a variety of external workshops and visits for selected year groups and included information workshops for parents to bring them into school. Page 5

8 TRUSTEES' REPORT (continued) Investment policy and performance The school s investment strategy is: Regularly monitor cash flow and current/fund account balances to ensure immediate financial commitments can be met (payroll and payment runs) and that the accounts have adequate balances to meet forthcoming commitments. Periodically review interest rates and compare with other investment opportunities. The school s current policy is to only invest in risk free and immediately assessable accounts. Any change in policy requires the approval of Trustees via the Finance and Personnel Committee. FINANCIAL REVIEW Financial Review The majority of the school s funding was provided by the Education Funding Agency (EFA). The school s total incoming resources for the year to 31 August amounted to 1,170,298 of which 858,994 related to the EFA General Annual Grant. The school's total outgoing resources for the period amounted to 1,036,590. As at 31 August the Academy held unrestricted reserves of 38,186 which can be spent on activities within the Academy's charitable objects, and 94,522 restricted reserves (being General Annual Grant carried forward to the next year to be spent on core educational activities or capital expenditure as decided by Trustees). Total unspent General Annual Grant plus unrestricted reserves at 31 August were 132,708. Financial and risk management objectives and policies The risks faced by the Academy are outlined in the Risk Register which will be updated annually along with the Business Continuity and Contingency plan. Principal risks and uncertainties Principal risks and uncertainties facing the Academy Trust are low and link to the risk management process that the Academy Trust has in place. At 31 August the pension deficit on the Local Government Pension Scheme stood at 312,000. The Academy has mitigated risk in relation to this pension scheme by taking out insurance against early retirement on the grounds of ill health. Changes in contributions rates as decided upon by the actuaries of the scheme are budgeted for as soon as they are known, when they are updated every three years. Parliament has agreed, at the request of the Secretary of State for Education, to guarantee that, in the event of Academy closure, outstanding pension scheme liabilities would be met by the Department for Education. The guarantee came into force on 18 July Page 6

9 TRUSTEES' REPORT (continued) Reserves Policy The Trustees have developed a reserves policy for the school which is reviewed on an annual basis. The Trustees have determined that the appropriate level of unrestricted reserves (total less the amount held in tangible fixed assets and restricted ) plus unspent General Annual Grant should be approximately one month s expenditure equating to around 90,000. The reason for this is to provide sufficient working capital to cover delays between spending and receipts of grants to provide resources to deal with unexpected emergencies such as urgent maintenance. Actual unrestricted reserves plus unspent General Annual Grant (GAG) as at 31 August were 132,708 being 42,708 greater than the target level. The Trustees plan to use the reserves above target to fund an expected deficit in the /16 academic year of 21,000 with the remainder being used for extra staffing cover as a result of unexpected maternity costs. Cash at bank at 31 August was 295,588 higher than the above reserves of 132,708 mainly due to 303,593 of Condition Improvement Fund capital income received in advance of payment. The pension deficit of 312,000 is being addressed over the medium to long term by means of contribution rates revised by the pension scheme actuaries on a triennial basis, which are affordable for the academy. PLANS FOR FUTURE PERIODS Future developments The Trustees intend to continue their current strategies of maintaining the school s position in a competitive market by providing outstanding education for all pupils. Achieving high standards of academic results is a constant aim whilst maintaining the breadth and depth of wider education to develop the whole person and to provide an inclusive education for all children. Funds held as custodian The Academy does not hold on behalf of any other organisations. Page 7

10 Disclosure of information to auditors TRUSTEES' REPORT (continued) Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that: Auditors so far as that Trustee is aware, there is no relevant audit information of which the charitable company's auditors are unaware, and that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any information needed by the charitable company's auditors in connection with preparing their report and to establish that the charitable company's auditors are aware of that information. The auditors, Clear & Lane Limited, have indicated their willingness to continue in office. The Designated Trustees will propose a motion re-appointing the auditors at a meeting of the Trustees. This report, incorporating the Strategic report, was approved by order of the Board of Trustees, as the company directors, on 8 December and signed on the board's behalf by: J Parkinson Chair of Trustees Page 8

11 Scope of Responsibility GOVERNANCE STATEMENT As Trustees, we acknowledge we have overall responsibility for ensuring that Measham Church of England Primary School Academy Trust 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 Headteacher, 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 Measham Church of England Primary School Academy Trust 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 6 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 J Parkinson, Chair 6 6 H Phillips, Vice Chair 6 6 M Fisher, Headteacher 6 6 H Carter 4 6 S Plant 6 6 V Elphick 3 6 G Brooks 4 6 S Jones 3 6 M Gibbon 0 2 A Timbrell 4 6 N Walters 2 3 T Aston-Wright 4 6 L Masters 5 6 T Hogan 3 3 H Wileman 2 3 Governance reviews: The findings of the annual review carried out during the year to 31 August were based on a skills audit of the Governing Body that was carried out in January. The actions taken as a result of those findings and the impact they had were as follows: the audit showed that there was a deficit of experience in finance new Trustee vacancy filled is a Finance Director there was a need for more Trustees with business acumen new Trustee working for a local national building firm in the finance department The Board of Trustees intends to conduct another self-evaluation review during the forthcoming year. This will become a yearly review. Page 9

12 GOVERNANCE STATEMENT (continued) The Finance & Personnel Committee is a delegated committee of the main Board of Trustees. Its purpose is to oversee the finance, and personnel of the school. Attendance at meetings in the year was as follows: Trustee Meetings attended Out of a possible J Parkinson, Chair 3 6 H Phillips, Vice Chair 6 6 M Fisher, Headteacher 6 6 V Elphick 5 6 G Brooks 4 6 T Hogan 2 2 Review of Value for Money As Accounting Officer the Headteacher has responsibility for ensuring that the Academy Trust delivers good value in the use of public resources. The Accounting Officer understands that value for money refers to the educational and wider societal outcomes achieved in return for the taxpayer resources received. The Accounting Officer considers how the Trust s use of its resources has provided good value for money during each academic year, and reports to the Board of Trustees where value for money can be improved, including the use of benchmarking data where available. The Accounting Officer for the Academy Trust has delivered improved value for money during the year by: the successful Condition Improvement Fund bid for roof, windows and door replacements which will reduce repairs and maintenance budgets being part of the score project to investigate ways to reduce energy cost continue to apply best value criteria to all purchases and services 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 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 Measham Church of England Primary School Academy Trust for the year 1 September 2014 to 31 August 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 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's significant risks, that has been in place for the year 1 September 2014 to 31 August and up to the date of approval of the annual report and financial statements. This process is regularly reviewed by the Board of Trustees. Page 10

13 The Risk and Control Framework GOVERNANCE STATEMENT (continued) The Academy 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 & Personnel 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 to appoint Leicestershire County Council as internal auditor. The internal auditor's role includes giving advice on financial matters and performing a range of checks on the Academy's financial systems. In particular the checks carried out in the current period included: testing on payroll systems, purchase systems and control accounts and bank reconciliations. On an annual basis, the internal auditor reports to the Board of Trustees on the operation of the systems of control and on the discharge of the Board of Trustees' financial responsibilities. The latest internal audit visit was in November. No material control issues were identified as a result of the internal auditor's review work. Review of Effectiveness As Accounting Officer, the Headteacher 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 internal auditor; the work of the external auditors; the work of the executive managers within the Academy 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 & Personnel Committee and a plan to address weaknesses and ensure continuous improvement of the system is in place. Approved by order of the members of the Board of Trustees on 8 December and signed on its behalf, by: J Parkinson Chair of Trustees M Fisher Accounting Officer Page 11

14 STATEMENT ON REGULARITY, PROPRIETY AND COMPLIANCE As Accounting Officer of Measham Church of England Primary School Academy Trust I have considered my responsibility to notify the Academy 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 and the Secretary of State. As part of my consideration I have had due regard to the requirements of the Academies Financial Handbook (2014). I confirm that I and the Academy Board of Trustees are able to identify any material, irregular or improper use of by the Academy, or material non-compliance with the terms and conditions of funding under the Academy's funding agreement and the Academies Financial Handbook (2014). 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. M Fisher Accounting Officer Date: 8 December Page 12

15 TRUSTEES' RESPONSIBILITIES STATEMENT The Trustees (who act as governors of Measham Church of England Primary School Academy Trust and 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 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 on 8 December and signed on its behalf by: J Parkinson Chair of Trustees Page 13

16 INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MEASHAM CHURCH OF ENGLAND PRIMARY SCHOOL ACADEMY TRUST We have audited the financial statements of Measham Church of England Primary School Academy Trust for the year ended 31 August which comprise the Statement of financial activities, the Balance sheet, the Cash flow statement and the related notes. 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 2014 to issued by the Education Funding Agency. This report is made solely to the Academy's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act Our audit work has been undertaken so that we might state to the Academy'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 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 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'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. Basis for qualified opinion on financial statements The financial statements do not include a value with respect to the expectation of future use of the Leicestershire Church of England Diocese buildings from which the Academy operates. The Diocese have indicated their opinion that such a value should not be included in the Academy s accounts and the Trustees have made the decision to act accordingly. It is not possible to quantify the omission as no valuation has been carried out, however the value attributed to the item is arguably of limited relevance to the reader of the accounts given the absence of any impact on usable reserves. Page 14

17 INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MEASHAM CHURCH OF ENGLAND PRIMARY SCHOOL ACADEMY TRUST Qualified opinion on financial statements In our opinion, except for the effect of the matter described in the Basis for Qualified Opinion paragraph, the financial statements: give a true and fair view of the state of the Academy's affairs as at 31 August 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 2014 to 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. 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. Luke Turner ACA FCCA (Senior statutory auditor) for and on behalf of Clear & Lane Limited Chartered Accountants Statutory Auditors 340 Melton Road Leicester LE4 7SL 14 December Page 15

18 INDEPENDENT REPORTING ACCOUNTANTS' ASSURANCE REPORT ON REGULARITY TO MEASHAM CHURCH OF ENGLAND PRIMARY SCHOOL ACADEMY TRUST AND THE EDUCATION FUNDING AGENCY In accordance with the terms of our engagement letter dated 20 January and further to the requirements of the Education Funding Agency (EFA) as included in the Academies Accounts Direction 2014 to, we have carried out an engagement to obtain limited assurance about whether the expenditure disbursed and income received by Measham Church of England Primary School Academy Trust during the year 1 September 2014 to 31 August 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 Measham Church of England Primary School Academy Trust and EFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to Measham Church of England Primary School Academy Trust 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 Measham Church of England Primary School Academy Trust and EFA, for our work, for this report, or for the conclusion we have formed. Respective responsibilities of Measham Church of England Primary School Academy Trust's accounting officer and the reporting accountant The accounting officer is responsible, under the requirements of Measham Church of England Primary School Academy Trust's funding agreement with the Secretary of State for Education dated 1 December 2012, and the Academies Financial Handbook extant from 1 September 2014, 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 2014 to. 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 2014 to 31 August 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 2014 to 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's income and expenditure. The work undertaken to draw our conclusions include: - On a sample basis testing transactions and balances. - Making enquiries of the academy regarding systems and controls in place that are relevant to our regularity conclusion. - On a sample basis reviewing records for evidence of those systems and controls in operation. Page 16

19 INDEPENDENT REPORTING ACCOUNTANTS' ASSURANCE REPORT ON REGULARITY TO MEASHAM CHURCH OF ENGLAND PRIMARY SCHOOL ACADEMY TRUST 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 2014 to 31 August have not been applied to purposes intended by Parliament and the financial transactions do not conform to the authorities which govern them. Luke Turner ACA FCCA (Senior statutory auditor) Clear & Lane Limited Chartered Accountants Statutory Auditors 340 Melton Road Leicester LE4 7SL 14 December Page 17

20 STATEMENT OF FINANCIAL ACTIVITIES (incorporating income and expenditure account and statement of total recognised gains and losses) INCOMING RESOURCES Unrestricted Note Restricted Restricted fixed asset Total Total 2014 Incoming resources from generated : Voluntary income 2-3,381-3, Activities for generating 3 16, ,036 14,955 Investment income Incoming resources from charitable activities: Funding for the Academy trust's educational operations 5-1,000, ,734 1,150, ,224 TOTAL INCOMING RESOURCES 16,305 1,004, ,734 1,170,298 1,014,522 RESOURCES EXPENDED Costs of generating : Fundraising expenses and other costs 9 15, ,992 14,177 Charitable activities: Academy trust educational operations ,399 20,041 1,013, ,519 Governance costs 8-7,158-7,158 7,190 TOTAL RESOURCES EXPENDED 9 15,992 1,000,557 20,041 1,036, ,886 NET INCOMING RESOURCES/ (RESOURCES EXPENDED) BEFORE TRANSFERS, CARRIED FORWARD 313 3, , , ,636 Page 18

21 STATEMENT OF FINANCIAL ACTIVITIES (continued) Unrestricted Note Restricted Restricted fixed asset Total Total 2014 NET INCOMING RESOURCES/ (RESOURCES EXPENDED) BEFORE TRANSFERS, BROUGHT FORWARD 313 3, , , ,636 Transfers between Funds 18 - (33,910) 33, NET INCOME/(EXPENDITURE) FOR THE YEAR 313 (30,208) 163, , ,636 Actuarial gains and losses on defined benefit pension schemes - 4,000-4,000 (69,000) NET MOVEMENT IN FUNDS FOR THE YEAR 313 (26,208) 163, ,708 34,636 Total at 1 September ,873 (191,270) 62,264 (91,133) (125,769) TOTAL FUNDS AT 31 AUGUST 38,186 (217,478) 225,867 46,575 (91,133) All activities relate to continuing operations. The Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 22 to 43 form part of these financial statements. Page 19

22 FIXED ASSETS MEASHAM CHURCH OF ENGLAND PRIMARY SCHOOL ACADEMY TRUST REGISTERED NUMBER: BALANCE SHEET AS AT 31 AUGUST 2014 Note Tangible assets ,867 62,264 CURRENT ASSETS Stocks 15 4,449 2,640 Debtors 16 58,279 69,818 Cash at bank and in hand 428, , , ,430 CREDITORS: amounts falling due within one year 17 (358,316) (83,827) NET CURRENT ASSETS 132, ,603 TOTAL ASSETS LESS CURRENT LIABILITIES 358, ,867 Defined benefit pension scheme liability 25 (312,000) (294,000) NET ASSETS/(LIABILITIES) INCLUDING PENSION SCHEME LIABILITY 46,575 (91,133) FUNDS OF THE ACADEMY Restricted : Restricted general 18 94, ,730 Restricted fixed asset ,867 62,264 Restricted excluding pension liability 320, ,994 Pension reserve (312,000) (294,000) Total restricted 8,389 (129,006) Unrestricted 18 38,186 37,873 TOTAL FUNDS/(DEFICIT) 46,575 (91,133) The financial statements were approved by the Trustees, and authorised for issue, on 8 December and are signed on their behalf, by: J Parkinson Chair of Trustees The notes on pages 22 to 43 form part of these financial statements. Page 20

23 CASH FLOW STATEMENT 2014 Note Net cash flow from operating activities ,965 89,170 Returns on investments and servicing of finance Capital expenditure and financial investment 21 (30,910) (16,744) INCREASE IN CASH IN THE YEAR 276,324 72,620 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS 2014 Increase in cash in the year 276,324 72,620 MOVEMENT IN NET FUNDS IN THE YEAR 276,324 72,620 Net at 1 September ,972 79,352 NET FUNDS AT 31 AUGUST 428, ,972 The notes on pages 22 to 43 form part of these financial statements. Page 21

24 1. ACCOUNTING POLICIES NOTES TO THE FINANCIAL STATEMENTS 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 2014 to issued by EFA, applicable accounting standards and the Companies Act FUND ACCOUNTING Unrestricted income represent those resources which may be used towards meeting any of the charitable objects of the Academy at the discretion of the Trustees. Designated comprise unrestricted that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted fixed asset 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 comprise all other restricted received and include grants from Education Funding Agency. Transfers between and between categories of i.e. restricted, designated and unrestricted are only processed with due regard to grant terms, agreements of funders (where applicable) and due process where formal Trustees' resolutions are required. Full disclosures are given within the notes to the accounts for any transfers processed. Investment income, gains and losses are allocated to the appropriate fund. 1.3 INCOMING RESOURCES All incoming resources are included in the Statement of financial activities when the Academy has entitlement to the, 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 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. The value of donated services and gifts in kind provided to the Academy are recognised at their open market value in the period in which they are receivable as incoming resources, where the benefit to the Academy 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's policies. Page 22

25 1. ACCOUNTING POLICIES (continued) NOTES TO THE FINANCIAL STATEMENTS Donations are recognised on a receivable basis where there is certainty of receipt and the amount can be reliably measured. 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. 1.4 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 are costs incurred in attracting voluntary income, and those incurred in trading activities that raise. Charitable activities are costs incurred in the Academy's educational operations. Governance costs include the costs attributable to the Academy'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 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. Page 23

26 1. ACCOUNTING POLICIES (continued) NOTES TO THE FINANCIAL STATEMENTS 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's depreciation policy. A 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. 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: Construction in progress - not depreciated Fixtures and fittings - 15% Straight line Computer equipment - 25% 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. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the period until the date the rent is expected to be adjusted to the prevailing market rate. 1.8 STOCKS Stocks are valued at the lower of cost and value in use. 1.9 TAXATION The Academy 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 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. Page 24

27 1. ACCOUNTING POLICIES (continued) 1.10 PENSIONS NOTES TO THE FINANCIAL STATEMENTS Retirement benefits to employees of the Academy are provided by the Teachers' Pension Scheme ("TPS") and the Local Government Pension Scheme ("LGPS"). These are defined benefit schemes, are contracted out of the State Earnings-Related Pension Scheme ("SERPS"), and the assets are held separately from those of the Academy. The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees' working lives with the Academy in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quinquennial valuations using a prospective benefit method. As stated in note 25, the TPS is a multi-employer scheme and the Academy is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. The TPS is therefore treated as a defined contribution scheme and the contributions recognised as they are paid each year. The LGPS is a funded scheme and the assets are held separately from those of the Academy in separate trustee administered. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent term and currency to the liabilities. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The amounts charged to operating surplus are the current service costs and gains and losses on the settlements and curtailments. They are included as part of staff costs. Past service costs are recognised immediately in the Statement of financial activities if the benefits have vested. If the benefits have not vested immediately, the costs are recognised over the period vesting occurs. The expected return on assets and the interest cost are shown as a net finance amount of other finance costs or credits adjacent to interest. Actuarial gains and losses are recognised immediately in other gains and losses. 2. VOLUNTARY INCOME Unrestricted Restricted Total Total 2014 Parents & Friends Association donations - 3,381 3, ACTIVITIES FOR GENERATING FUNDS Unrestricted Restricted Total Total 2014 Children's Centre income 12,748-12,748 12,733 Fundraising activities 1,742-1,742 1,003 Sundry income 1,546-1,546 1,219 16,036-16,036 14,955 Page 25