STANTON UNDER BARDON COMMUNITY PRIMARY SCHOOL

Transcription

1 Registered number: (England and Wales) STANTON UNDER BARDON COMMUNITY PRIMARY SCHOOL TRUSTEES' REPORT AND FINANCIAL STATEMENTS

2 STANTON UNDER BARDON PRIMARY SCHOOL CONTENTS Page Reference and Administrative Details 1-2 Trustees' Report 3-11 Governance Statement Statement on Regularity, Propriety and Compliance 16 Statement of Trustees Responsibilities 17 Independent Auditors Report on the Financial Statements Independent Reporting Accountant's Report on Regularity Statement of Financial Activities Incorporating Income and Expenditure Account 23 Balance Sheet 24 Statement of Cash Flows 25 Notes to the Financial Statements 26-49

3 REFERENCE AND ADMINISTRATIVE DETAILS Members Paul Milner (Chair of Trustees) Joanne Barrett Rosie Asbery Alistair Keates (appointed 10 October 2018) Michael Smith (Vice Chair) (appointed 10 October 2018) Terry Mulloy (Chair of Finance) (resigned 15 January 2018) Yvonne Stotesbury (resigned 10 October 2018) Trustees Paul Milner (Chair of Trustees) Michael Smith (Vice Chair) Diane Parry (Headteacher and Accounting Officer) Brigitte Glover (Staff Trustee) Stephanie Keeling (Staff Trustee) Joanne Barrett Rosie Asbery (appointed 9 November 2017) Alistair Keates (appointed 10 October 2018) Stephanie Broderick (appointed 10 October 2018) Yvonne Stotesbury (resigned 10 October 2018) Terry Mulloy (Chair of Finance) (resigned 15 January 2018) Rachel Lowe (appointed 9 November 2017, resigned 28 November 2017) Senior Leadership Team Diane Parry (Headteacher and Accounting Officer) Helen Filkins (Senior Teacher TLR) Stephanie Keeling (Senior Teacher) Company Name Stanton Under Bardon Community Primary School Principal and Registered Office Main Street Stanton Under Bardon Markfield Leicestershire LE67 9TQ Company Registered Number (England & Wales) Page 1

4 REFERENCE AND ADMINISTRATIVE DETAILS Independent Auditor MHA MacIntyre Hudson, Chartered Accountants, Statutory Auditors 11 Merus Court, Meridian Business Park Leicester LE19 1RJ Bankers Lloyds Bank PLC 20 Belvior Road Coalville Leicestershire Solicitors Howes Percival LLP Solicitors 3 The Osiers Business Centre Leicester LE19 1DX Page 2

5 TRUSTEES' REPORT The Trustees present their Annual Report together with the financial statements and Auditor s Report of the charitable company for the year ended 31 August The Annual Report serves the purposes of both a Trustees Report, and a Directors Report under company law. The Trust operates a primary Academy for pupils aged 4 to 11 serving a catchment area in Leicestershire. It has a pupil capacity of 120 and had a roll of 107 in the school census on 18 January 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 Trustees of Stanton Under Bardon Community Primary School are also the directors of the charitable company for the purposes of company law. The charitable company is known as Stanton Under Bardon Community Primary School. Details of the Trustees who served during the year, and to the date these accounts are approved are included in the Reference and Administrative Details on pages 1 and 2. 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. Trustees Indemnities Trustees benefit from indemnity insurance 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. The cost of this insurance for the year ended 31 August 2018 was 81. Method of Recruitment and Appointment or Election of Trustees Stanton Under Bardon Community Primary School shall have the following Trustees as set out in its Articles of Association and funding agreement. The members may appoint up to 9 Trustees; The members may appoint staff Trustees; Parent Trustees are elected by parents of registered pupils at the Academy; and The Headteacher is treated for all purposes as being an ex officio Trustee. Except for the Headteacher, Trustees are appointed for a four year period. Subject to remaining eligible to be a particular type of Trustee, any Trustee can be re-appointed or re-elected. Parent and Staff Trustees are appointed through nomination and election. Community Trustees were re-appointed at the inception of the Academy and since then they are on a four year cycle. When appointing new Trustees the Board of Trustees give consideration to the skills and experience required to ensure that the Board of Trustees have the necessary skills to contribute fully to the Academy s development. Page 3

6 TRUSTEES' REPORT (continued) Policies and Procedures Adopted for the Induction and Training of Trustees There is an induction process for new Trustees, they are also provided with; copies of policies, procedures, minutes, accounts, budgets, plans and documents that they will need to undertake their role as Trustees of Stanton Under Bardon Community Primary School. All Trustees have access to the Local Authority Governor Training Services, who provide additional induction training. Organisational Structure The Trustees determine the policy and strategic direction of the Academy. The day to day running of the school is the responsibility of the Headteacher, supported by senior staff. The Headteacher undertakes the key leadership role, overseeing educational, welfare and administrative functions in consultation with staff. The day-to-day administration is undertaken within the policies and guidelines, set down in law and those adopted by Trustees. The Trustees work through a committee structure with delegated decision making rights. There are 3 committees as follows: Audit, Finance and Personnel; Health, Safety and Premises; and Strategic Planning and Standards. Each committee generally meets at least once per term. The Chairs and terms of reference for committees are agreed at the start of the academic year. Membership of the committees is reviewed annually. Each Trustee is expected to be an active participant in at least one committee and all Trustees are welcome to attend all committee meetings. The Headteacher is responsible for arranging meetings, informing and supporting the work of Trustees, the preparation of agendas and ensuring review of matters arising. The school Finance Manager is responsible for the preparation of accounts in consultation with the Finance Officer who manages school finance and administration on a day-to-day basis. The Headteacher oversees the recruitment and management of all staff and is an ex-officio Trustee, Headteacher, Accounting Officer and attends all Committee and full Trustee meetings. All Trustees give freely of their time and expertise no expenses were paid during the year. Arrangements for setting pay and remuneration of Key Management Personnel The Board of Trustees have established that the Audit, Finance and Personnel Committee monitor pay decisions. The Pay Committee have fully delegated powers to make decisions on pay progression for all teachers in the school on behalf of the Board of Trustees, the Pay Committee does not include employee Trustees. Subject to the requirements of the Academy Act and the school s Funding Agreement with the Secretary of State, the committee is authorised: To agree and recommend the Staff Pay policies to the full governing body; To ensure the application of the Pay Policies in a fair and consistent way; To ensure all statutory and contractual requests are applied; To record all decisions and report back to the full governing body; To recommend to the governing body the total amount of funding needed for pay progression; To ensure knowledge is up-to-date about pay issues and make relevant recommendations to the full governing body and be aware when the pay policy needs to be updated; and Make arrangements to listen to any appeals as necessary. Page 4

7 TRUSTEES' REPORT (continued) The performance and pay progression of the Headteacher is considered by the Pay Committee on the recommendation of the Chair of Trustees with advice from the External Adviser. The Teacher s Pay Policy is reviewed and agreed annually by the Audit, Finance and Personnel Committee. Related Parties and other Connected Charities and Organisations Stanton Under Bardon Community Primary School is an independent company in all financial aspects. The Academy, Stanton Under Bardon Community Primary School, works with the Enrich partnership. Enrich, whose members are the local college, local high schools and primary schools. The schools work together to provide enrichment opportunities across all schools and ages and to provide quality transition arrangements. Headteachers share experience and expertise on development matters raised from within the group. The school has also been part of G7 which is a group of local schools working together through regular Headteacher meetings, moderation and subject leader groups, sharing good practice and local and National updates. Through these networks and by being pro-actively engaged in relevant briefing meetings the Headteacher, staff and Trustees ensure that they are fully informed and well equipped to take the school forward. OBJECTIVES AND ACTIVITIES The task of the school is to provide for children s education. Every adult in school is there to serve this purpose. At Stanton Under Bardon Community Primary School, we aim to provide the best education possible, whilst being vigilant and pro-active in ensuring the safeguarding and well-being of pupils in our care. Objectives The principal object and activity of Stanton Under Bardon Community Primary School is to advance for the public benefit, education in the United Kingdom, in particular but without prejudice by establishing, maintaining, carrying on, managing and developing a school offering a broad and balanced curriculum. Vision Statement Our vision is for all children to leave Stanton Under Bardon Community Primary School as confident, independent, respectful and self-motivated young people. Our children will develop an enthusiasm for lifelong learning and be equipped with the academic, social and emotional skills to best prepare for life in the modern world. Mission Statement With the co-operation and support of parents, staff and Trustees, we are committed to being a happy, safe, caring and inclusive school. We are committed to delivering a creative curriculum that enables children to understand the benefits that exist in a society where diversity and difference are celebrated. Main Objectives for the year To ensure good outcomes by pupils making substantial and sustained progress; To create a culture of high expectations, aspirations and academic excellence; To ensure attainment and progress of all groups of pupils is in line with National; To provide a broad and balanced curriculum which inspires pupils to learn with fundamental British Values at the heart; and To provide highly effective teaching and support across the school. Page 5

8 TRUSTEES' REPORT (continued) This year the school has achieved the Silver Beyond Bullying Accreditation and have been working on a pilot project in the county called No Outsiders which teaches all area regarding Equality laws and inclusion. Public Benefit The Trustees of Stanton Under Bardon Community Primary School have complied with their duty to have due regard to the guidance on Public Benefit published by the Charity Commission in exercising their powers and duties. Public Benefit entities are reporting entities whose primary objective is to provide goods or services for the general benefit and where any equity has been removed with a view to supporting that primary objective rather than with a view to providing a financial return. STRATEGIC REPORT Key Performance Indicators Stanton Under Bardon Community Primary School, Statutory Assessment Results EYFS The Good Level of Development is the measure that helps to demonstrate the proportion of children who are achieving expected levels in the prime areas of learning (communication and language, physical development and personal, social and emotional development) and in Maths and Literacy. Stanton Under Bardon National Average % 69% % 71% % N/A Year 1 Phonics Screening Check 'The Phonics Screening Check is a short 'light touch' assessment to confirm whether individual pupils have learnt phonic decoding to an appropriate standard. It will identify the children who need help and support with their reading skills. Children will retake if they did not reach the required level.' (DfE 2011) Stanton Under Bardon pupils National 2016 Year 1 Phonics Screening Test Stanton Under National Bardon Pupils Stanton Under Bardon Pupils National % 81% 80% 81% 81% 83% Page 6

9 TRUSTEES' REPORT (continued) KS1 Attainment % Working at Expected or Higher % Working at Greater Depth Reading Stanton 86% 73% 86.7% 29% 33% 40% National (74%) (76%) (75%) (24%) (25%) (26%) average Writing Stanton 79% 67% 86.7% 21% 20% 20% National (65%) (68%) (70%) (13%) (16%) (16%) average Maths Stanton 83% 73% 86.7% 29% 40% 33.3% National average (73%) (75%) (76%) (18%) (21%) (22%) KS2 Attainment % Working at Expected or Higher % Working at Greater Depth Reading, Stanton 63.6% 67% 57% 0% 17% 14% Writing and National (53%) (61%) (64%) (5%) (9%) (10%) Maths average Reading Stanton 72.7% 67% 71% 45.5% 17% 14% National (66%) (71%) (75%) (19%) (25%) (28%) average Writing Stanton 72.7% 75% 64% 45.5% 33.3% 36% National (74%) (76%) (78%) (15%) (18%) (20%) average Maths Stanton 63.6% 92% 71% 27.3% 25% 29% National (70%) (75%) (76%) (17%) (23%) (24%) average SPAG Stanton 72.7% 83% 86% 36.4% 42% 43% National average (73%) (77%) (78%) (22%) (31%) (34%) KS2 Progress Reading Writing Maths KS2 Average Scaled Score Year Average Stanton National average Stanton National average Stanton National average Stanton National average Reading Maths Page 7

10 TRUSTEES' REPORT (continued) Key Financial Performance Indicators The school s current Ofsted grading is good. Trustees and staff are committed to school improvement and achieving the highest possible standards for pupils. The school numbers continue to increase with a 5 year projection that continues that upward trend. The school employs high quality staff and provides CPD and training on all current educational developments. The school has met the floor standards for end of Key Stage 2 data this year. 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 Statement of Accounting Policies. FINANCIAL REVIEW Most of the Academy s income is obtained from the DfE via the ESFA in the form of recurrent grants, the use of which is restricted to particular purposes. The grants received from the ESFA during the year ended 31 August 2018 and the associated expenditure are shown as restricted in the Statement of Financial Activities. Key financial policies adopted or reviewed during the year, include the Finance Policy, which lays out the framework for financial management, including financial responsibilities of the Board of Trustees, Headteacher, School Finance Manager, budget holders and other staff, as well as delegated authority spending. Trustees use the local authority, Leicestershire County Council, for their independent internal audit. In accordance with the Charities Statement of Recommended Practice, Accounting and Reporting by Charities (SORP 2015) capital grants received and expended 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 expected useful life of assets concerned. Reserves Policy Reserves are the held by the Academy Trust after excluding restricted i.e. the resources the Academy has or can make available to spend for the Academy Trust s purpose once it has met its commitments and covered its other planed expenditure. The Academy Trust will always aim to match income with expenditure in the current year and will only carry forward reserves that it considers necessary for future years expenditure. This will include set aside for replacement of capital items such as IT infrastructure or premises development, and allowance to cover the principal risks facing the Academy, including reductions in pupil numbers or Academy Trust funding levels. The level of reserves will be kept under review by the Trustees, ensuring sufficient working capital and provide a contingency fund to deal with unexpected emergencies such as urgent maintenance. At 31 August 2018 the total comprised: Unrestricted 79,000 Restricted: Fixed asset 549,000 Pension reserve ( 160,000) Other 48, ,000 = Page 8

11 TRUSTEES' REPORT (continued) Investment Policy If it is identified that there is a level of cash surplus to requirements these may be invested in interest bearing accounts with the top five banks. During a surplus was identified but after investigation and consideration to the low levels of interest offered, the Finance, Audit and Personnel Committee agreed that it was not a viable option. Principal Risks and Uncertainties The Trustees have assessed the major risks to which Stanton Under Bardon Community Primary School is exposed, in particular those relating to the specific teaching, provision of facilities, and other operational areas of the Academy Trust. They also include the risk involving finances at the school. The Trustees have implemented a number of systems to assess and minimise those risks, including internal controls. They have approved a Risk Register outlining all foreseeable strategic, operational, financial and compliance risks, together with appropriate control measures. Risk Management is regularly reviewed during committee meetings. They have also agreed the Financial Management Manual incorporating the Finance Policy; a Risk Management Policy is in place, alongside a Risk Register. The Trustees examine the financial health formally every term during committee meetings The Board of Trustees recognises that the defined benefit pension scheme (Local Government Pension Scheme) represents a significant potential liability. However, the Trustees consider that the Academy Trust is able to meet its known annual contribution commitments for the near future, therefore the risk from this liability is minimised. As at 31 August 2018 the deficit is 160,000. The Governing Body accepts managed risk as an inevitable part of its operations but maintains an objective not to run unacceptable risks in any area. The subjective nature of this process requires major risks to be resolved by the Governing Body collectively, whilst more minor risks are dealt with by Audit, Finance and Personnel Committee or the Headteacher. The principal risks and uncertainties facing the Academy Trust are as follows: Financial The Academy Trust has considerable reliance on continued Government funding 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. The principal financial risks are a reduction in pupil numbers, reduction in central Government funding, unbudgeted increase in teaching or support staff costs, or unbudgeted major capital repairs. The risks presented here are mitigated by careful and regular monitoring of cash flow, budget projections, focus on priorities and value for money. Failures in governance and/or management - the risk in this area arises from potential failure to effectively manage the Academy Trust 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. Fraud and Mismanagement of Funds The Academy Trust have appointed the Local Authority for internal audit purposes, to carry out checks on financial records as required by the Academy Financial Guidelines. Page 9

12 TRUSTEES' REPORT (continued) Reputational The continuing success of the Academy Trust is dependent on continuing to attract applicants in sufficient numbers by maintaining the highest educational standards. To mitigate this risk, Trustees ensure that pupil success and achievement are closely monitored and reviewed. The school maintains high standards, fairness and integrity underpinning the best possible education and standards of safeguarding for pupils resulting in the school being the school of choice for increasing numbers of families. Performance Performance is mitigated by ensuring staff training has high priority and recruitment ensures the best available person is appointed to post. The school development plan focuses on raising standards and includes identification of areas for attention, a focus on learning, partnership work with other colleagues and cohort targets. Staffing The success of the Academy Trust is reliant on the quality of staff, and so, Trustees monitor and review policies and procedures to ensure continued development and training of staff as well as ensuring there is clear succession planning. The principal risks facing the Academy Trust, associated with personnel are mitigated by clear expectations and high standards made clear to all, an appraisal system which helps develop and reward achievement, support for staff to do their job without unreasonable demands; a positive working environment and awareness of career development opportunities. Careful and considered recruitment procedures are implemented for all staff with suitable levels of training for those involved in recruitment and checks undertaken to ensure suitability of those appointed. 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 and safety and discipline. FUNDRAISING Stanton Under Bardon Community Primary School hold fund raising events that reflect the school s values. Fundraising is discussed and proceeds and donations shared at Audit, Finance and Personnel Committee meetings and on newsletters to parents. We supervise many of our fundraising activities through school staff, who volunteer for the events. The costs of our fundraising are managed and monitored for its effectiveness. PLANS FOR FUTURE PERIODS The Academy Trust will continue to strive to provide outstanding education and improve the standards of performance of its pupils at all levels, whilst maintaining breadth and depth of wider education to develop the whole person. The Trustees intend to continue with current strategies of maintaining the Academy Trust s position in a competitive market place by providing the best possible education for all our pupils. The Academy Trust will continue to aim to attract high quality teachers and support staff in order to deliver its objectives. The Academy Trust will continue to work with partner schools to share good practice and improve the educational opportunities for pupils in the wider community. The Academy Trust will continue to set challenging targets taking into account new curriculum expectations. Page 10

13 TRUSTEES' REPORT (continued) Future plans are financed from income direct from the ESFA, based on pupil numbers and other factors. Trustees will ensure funding is invested appropriately for the next generation of pupils as has been the case in the past, benefitting current pupils. The school continues on a journey towards reaching areas of Outstanding in the next Ofsted inspection. FUNDS HELD AS CUSTODIAN TRUSTEE ON BEHALF OF OTHERS The Academy Trust and its Trustees do not act as the Custodian Trustees of any other Charity. AUDITOR In so far as the Trustees are aware: there is no relevant audit information of which the charitable company s auditor is 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 auditor is aware of that information. The Trustees report, incorporating a Strategic Report, was approved by order of the Board of Trustees, as the company directors, on 6 December 2018 and signed on the Board s behalf by: P Milner Chair of Trustees Page 11

14 GOVERNANCE STATEMENT SCOPE OF RESPONSIBILITY As Trustees we acknowledge we have overall responsibility for ensuring that Stanton Under Bardon Community Primary School 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 Stanton Under Bardon Community Primary School 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 Statement of Trustees Responsibilities. The Board of Trustees has formally met four 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 P Milner (Chair of Trustees) 4 4 Y Stotesbury (Vice Chair to 10 October 2018) 2 4 T Mulloy (resigned 15 January 2018) 1 2 B Glover 4 4 S Keeling 4 4 J Barrett 2 4 R Asbery 3 4 M Smith (Vice Chair from 10 October 2018) 2 4 D Parry (Headteacher and Accounting Officer) 4 4 Two parent Trustees ended their term of office on 11 November J Barrett was re-elected along with R Lowe on 9 November However, R Lowe resigned on 28 November R Asbery was in third place in the count so was re-elected. Governor Development Services advised to use her term of office from 9 November T Mulloy, who was Chair of the Finance, Audit and Personnel Committee resigned on 15 January 2018 and Y Stotesbury resigned on 10 October 2018 but two new co-opted Trustees A Keates and S Broderick were elected on 10 October 2018 when M Smith was also elected as the new Vice Chair. The Trustees have considered the quality of the data they receive and consider it to be good for the purposes of overseeing the work of Stanton Under Bardon Community Primary School. Their assessment has been made having regard to externally validated data which is consistent with that received from the school and data provided by the work of the external audit. Page 12

15 GOVERNANCE STATEMENT (continued) The Finance, Audit and Personnel Committee is a sub-committee of the main Board of Trustees with delegated powers. Its purpose is to: The Committee has the delegated responsibility to make decisions on behalf of the Governing Body and to keep Trustees informed of developments and decisions via reports and/or minutes shared with the full Governing Body; In the event of a need to make genuinely urgent decisions between meetings on matters falling within the remit of the Committee, the Chair of Trustees, in consultation with the Headteacher and Chair of the Committee, will take appropriate action on behalf of the Committee. The decisions taken and the reason for urgency will be fully explained at the next meeting of committee and full Governing Body; The Chair of the Committee will be responsible for giving an oral summary of the Committee s deliberations if necessary at meeting of the full Governing Body; Agenda and reports, etc. will be sent out 7 days in advance of meetings; Ensure that all policies and procedure relating to audit, finance, pay, personnel and performance management are reviewed and amended where appropriate; The Committee will review the risks to internal financial control; To inform the Governance Statement that accompanies the annual accounts and as far as possible provide assurance to the external auditors; and Receive reports from the appointed external auditors and ensure any recommendations/actions are taken as advised. Attendance at meetings in the year was as follows: Trustee Meetings attended Out of a possible T Mulloy (Chair to 15 January 2018) P Milner (Chair of Trustees) D Parry (Headteacher and Accounting Officer) 5 5 B Glover R Asbery Y Stotesbury (Chair from 31 January 2018) M Smith The Chair of the committee, T Mulloy, resigned in January and Y Stotesbury was elected as Chair from 31 January 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 Academy 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 appropriate. The Accounting Officer for the Academy Trust has delivered improved value for money during the year by: Page 13

16 GOVERNANCE STATEMENT (continued) Ensuring deployment of staff to provide the best value in terms of quality of teaching, quality of learning, adult-pupil ratio and curriculum management; Considering the use of the premises to provide the best environment for teaching and learning; Deployment of equipment, materials and services to provide pupils and staff with resources, which support quality of teaching and learning; Purchasing and obtaining goods and services which provide best value by using measures that are in place, these include; competitive tendering for Broadband services and using procedures that minimise office time; and Ensuring the health and safety of all members of the school community, including the safety of the buildings and learning environment. The school has met floor standards in progress for KS2 pupils and some areas, especially in greater depth, are above national. Teachers make sure lessons are lively and interesting. Pupils are safe when they are in school because of the good care adults take of them. Pupils are provided with a wide range of additional opportunities both within the school day and extra-curricular opportunities. 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 on-going 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 Stanton Under Bardon Community Primary School for the year ended 31 August 2018 and up to the date of approval of the Annual Report and Financial Statements. CAPACITY TO HANDLE RISK The Board of Trustees have reviewed the key risks to which Stanton Under Bardon Community Primary School 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 on-going process for identifying, evaluating and managing the Academy Trust's significant risks that has been in place for the year ended 31 August 2018 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, Audit and 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; Page 14

17 GOVERNANCE STATEMENT (continued) delegation of authority and segregation of duties; and 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 an internal auditor. The audit was carried out on 25 April The internal auditor s role includes giving advice on Governance, Financial Control, Investment Strategy, Budget Monitoring and Reporting, VAT and Invoicing Procedures. Detailed testing was carried out in: Invoices paid (Cheque and BACS) are valid and appropriately authorized. Payroll charges to budget (authorisation and reviewing process). Feedback from the audit was to consider the benefits that may be gained from paying suppliers electronically using internet banking or BACS and the Schools Financial Advisor (SFA) should sign and date the monthly payroll output reports received to confirm that the reports have been reviewed, and when. 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; and the work of the external auditor. The Accounting Officer has been advised of the implications of the result of their review of the system of internal control by the Audit, Finance and 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 6 December 2018 and signed on its behalf by: P Milner Chair of Trustees D Parry Accounting Officer Page 15

18 STATEMENT ON REGULARITY, PROPRIETY AND COMPLIANCE As Accounting Officer of Stanton Under Bardon Community Primary School I have considered my responsibility to notify the Academy Trust Board of Trustees and the Education and Skills Funding Agency (ESFA) of material irregularity, impropriety and non-compliance with terms and conditions of funding received by the Academy Trust, under the funding agreement in place between the Academy Trust and the Secretary of State for Education. 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 all 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 ESFA... D Parry Accounting Officer 6 December 2018 Page 16

19 STATEMENT OF TRUSTEES' RESPONSIBILITIES The Trustees (who act as Governors of Stanton Under Bardon Community Primary School and are also the directors of the charitable company for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with the Annual Accounts Direction published by the Education and Skills 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 2015 and the Academies Accounts Direction 2017 to 2018; 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; and 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 ESFA/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:... P Milner Chair of Trustees 6 December 2018 Page 17

20 INDEPENDENT AUDITORS' REPORT ON THE FINANCIAL STATEMENTS TO THE MEMBERS OF STANTON UNDER BARDON COMMUNITY PRIMARY SCHOOL OPINION We have audited the financial statements of Stanton Under Bardon Community Primary School (the 'Academy') for the year ended 31 August 2018 which comprise the Statement of Financial Activities incorporating the Income and Expenditure Account, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', the Charities SORP 2015 and the Academies Accounts Direction 2017 to 2018 issued by the Education and Skills Funding Agency. This report is made solely to the charitable company'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 charitable company'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 charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed. 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 2018 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, the Charities SORP 2015 and the Academies Accounts Direction 2017 to 2018 issued by the Education and Skills Funding Agency. BASIS FOR OPINION We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Academy Trust in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. CONCLUSIONS RELATING TO GOING CONCERN We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or the Trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Academy Trust ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. Page 18

21 INDEPENDENT AUDITORS' REPORT ON THE FINANCIAL STATEMENTS TO THE MEMBERS OF STANTON UNDER BARDON COMMUNITY PRIMARY SCHOOL OTHER INFORMATION The Trustees are responsible for the other information. The other information comprises the information included in the Trustees' Report, other than the financial statements and our Auditors' Report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006 In our opinion, based on the work undertaken in the course of the audit: the information given in the Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements. the Trustees' Report has been prepared in accordance with applicable legal requirements. MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION In the light of our knowledge and understanding of the Academy and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report. We have nothing to report in respect of the following matters in relation to which 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. Page 19

22 INDEPENDENT AUDITORS' REPORT ON THE FINANCIAL STATEMENTS TO THE MEMBERS OF STANTON UNDER BARDON COMMUNITY PRIMARY SCHOOL RESPONSIBILITIES OF TRUSTEES As explained more fully in the Statement of Trustees' Responsibilites, 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, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the Academy Trust's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Academy or to cease operations, or have no realistic alternative but to do so. AUDITORS' RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: This description forms part of our Auditors' Report. Robert Nelson BA FCA DChA (Senior Statutory Auditor) for and on behalf of MHA MacIntyre Hudson Chartered Accountants Statutory Auditors 11 Merus Court Meridian Business Park Leicester Leicestershire LE19 1RJ 13 December 2018 Page 20

23 INDEPENDENT REPORTING ACCOUNTANTS' ASSURANCE REPORT ON REGULARITY TO STANTON UNDER BARDON COMMUNITY PRIMARY SCHOOL AND THE EDUCATION & SKILLS FUNDING AGENCY In accordance with the terms of our engagement letter dated 28 August 2018 and further to the requirements of the Education & Skills Funding Agency (ESFA) as included in the Academies Accounts Direction 2017 to 2018, we have carried out an engagement to obtain limited assurance about whether the expenditure disbursed and income received by Stanton Under Bardon Community Primary School during the year 1 September 2017 to 31 August 2018 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 Stanton Under Bardon Community Primary School and the ESFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to Stanton Under Bardon Community Primary School and the ESFA 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 Stanton Under Bardon Community Primary School and the ESFA, for our work, for this report, or for the conclusion we have formed. RESPECTIVE RESPONSIBILITIES OF STANTON UNDER BARDON COMMUNITY PRIMARY SCHOOL'S ACCOUNTING OFFICER AND THE REPORTING ACCOUNTANT The Accounting Officer is responsible, under the requirements of Stanton Under Bardon Community Primary School's funding agreement with the Secretary of State for Education dated 1 October 2013, and the Academies Financial Handbook extant from 1 September 2017, 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 2017 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 2017 to 31 August 2018 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 2017 to 2018 issued by the ESFA. 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. Page 21