IBSTOCK COMMUNITY COLLEGE

Transcription

1 Registered number: ANNUAL REPORT AND FINANCIAL STATEMENTS

2 CONTENTS Page Reference and Administrative Details of the Academy, its Trustees and Advisers 1-2 Trustees' Report 3-12 Governance Statement Statement on Regularity, Propriety and Compliance 19 Trustees' Responsibilities Statement 20 Independent Auditor's Report to the Board of Trustees of Ibstock Community College Independent Reporting Accountant's Assurance Report on Regularity to Ibstock Community College and the Education Funding Agency Statement of Financial Activities incorporating Income & Expenditure Account Balance Sheet 27 Cash Flow Statement 28 Notes to the Financial Statements, incorporating Statement of Accounting Policies & other notes to the Financial Statements 29-48

3 REFERENCE AND ADMINISTRATIVE DETAILS OF THE ACADEMY, ITS MEMBERS, TRUSTEES AND ADVISERS Trustees Daphne Robinson (resigned 31 August ) Jonathan O'Farrell (resigned 5 December 2014) John Kailofer, Vice Chair Sandra Crompton Deanna Middleton Louise Reeve Virge Richichi Robert Trigg Vanessa Sulley (resigned 26 February ) Stephen Hill (resigned 2 September ) Rupert Jarvis (resigned 29 October 2014) Lee Sheldon, Acting Principal and Accounting Officer (appointed 1 September 2014, resigned 26 October 2014) Linda Higginson (resigned 10 January ) Robert Senior Richard Spurr, Chair of Trustees Gary Grey, Chair of Resources Edward Hines (appointed 26 February ) David Phillips, Principal and Accounting Officer (appointed 27 October 2014) Members Jonathan O'Farrell (resigned 5 December 2014) John Kailofer Richard Spurr Gary Grey Sandra Crompton Company registration number Company secretary Caroline Smithers Senior management team David Phillips, Principal (appointed 27 October 2014) Lee Sheldon, Vice Principal Lee Sheldon, Acting Principal (until 26 October 2014) Sophie Williams, Assistant Principal Tracey Allen, Assistant Principal (left 10 April ) Caroline Smithers, Business Manager Page 1

4 REFERENCE AND ADMINISTRATIVE DETAILS OF THE ACADEMY, ITS MEMBERS/ TRUSTEES AND ADVISERS Administrative details (continued) Independent auditor MHA MacIntyre Hudson Chartered Accountants Statutory Auditors 11 Merus Court Meridian Business Park Leicester LE19 1RJ Bankers Lloyds Bank 20 Belvoir Road Town Centre Coalville LE67 3QH Page 2

5 TRUSTEES' REPORT The Trustees (who act as Governors and are also Directors of the charitable company for the purposes of the Companies Act) present their Annual Report together with the audited financial statements of Ibstock Community College (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 11 to 14 and is a high school and community college serving a catchment area in Ibstock and the wider surrounding rural villages. It has a pupil capacity of 705 and had a roll of 558 in the school census on Thursday 2 October 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 Ibstock Community College Limited are also the Directors and Governors of the charitable company for the purposes of company law. The charitable company is known as Ibstock Community College. 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. TRUSTEES' INDEMNITIES The Companies Act 2006 s236 requires disclosure concerning qualifying third party indemnity provisions. 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 in the year was 1,452 (2014-1,242). METHOD OF RECRUITMENT AND APPOINTMENT OR ELECTION OF TRUSTEES Recruitment of Trustees is outlined in the Articles of Association and the EFA funding agreement. Members consist of the Chair and Vice Chair of Governors, Non-Executive Directors (NED) for the key areas including teaching and learning and business management and audit. Additional members may be appointed under Article 16 of the Articles of Association. Members can appoint up to eleven Governors, while three community Governors can be appointed by the Governing Body chosen to provide balance and breadth of skills. Page 3

6 TRUSTEES' REPORT (continued) There are also five elected Governors: two parent Governors, selected by parent ballot, and three staff Governors, appointed by staff ballot. In addition the Principal is an ex officio Governor, and there is one Governor appointed by the Local Authority (Leicestershire County Council). The term of appointment, except for the Principal, is four years. POLICIES AND PROCEDURES ADOPTED FOR THE INDUCTION AND TRAINING OF TRUSTEES Trustee induction training forms part of the overall specialist training which is available through the local network of schools to support all new Trustees. The Academy buys into the Leicestershire Trustee Development Service which offers a wide range of support and training to develop the necessary skills and knowledge to meet the needs of the Academy Trust. A skills matrix is maintained by the training and development Trustee to help identify areas of strength and areas requiring further support. Attendance at training events is also recorded and when appropriate a report of the event is shared with all the Trustees. ORGANISATIONAL STRUCTURE The management structure within the Academy has three levels: the Trustees (Governing Body), the Senior Leadership Team and other leadership groups. The aim of the management structure is to devolve responsibility and encourage involvement in decision making at all levels. The roles and responsibilities for the Trustees are reviewed at the start of each academic year. The role is, working with the Principal to set out the aims, objectives and policies for the Academy. Responsibilities include monitoring and reviewing the progress made against the strategic development plan and providing support to the Senior Leadership Team. The Trustees also set the annual budget, review the five year financial forecast and ensures all processes and procedures are in place to meet statutory and legal requirements. To facilitate the working of the Trustees some of the functions have been assigned to Non-Executive Director/Trustee roles (NED) which allows individual Trustees to focus on key areas of the Academy. The NED is responsible for the strategy and development related to that particular area but delegated authority has remained with the full Governing Body. Staff members are accountable to the NED. For the year ended 31 August, the Senior Leadership Team consisted of an Acting Principal up until 26 October 2014, with the appointment of a new Principal commencing on the 27 October The Principal and Acting Principal have undertaken the role of the Accounting Officer. Other members of the team include a Vice Principal, two Assistant Principals and the Business Manager who is the Director of Finance and Administration and the Company Secretary. The Senior Leadership Team is responsible to the Trustees for the management of the college, including implementing the strategic direction set and evaluating the progress made. The Academy has a range of leadership groups at middle leader level to ensure consistency across the college. They also provide advice to Trustees on a range of educational and business management functions. The Trustees have approved a scheme of financial delegation that allows financial responsibilities to be delegated within appropriate limits to facilitate the effective running of the Academy. Page 4

7 TRUSTEES' REPORT (continued) RELATED PARTIES AND OTHER CONNECTED CHARITIES AND ORGANISATIONS Ibstock Community College is a member of the ACE Partnership (the Ashby & Coalville Educational Partnership), which comprises the six main secondary schools in Ashby, Coalville and Ibstock. Included are high schools: Ibstock Community College, Ivanhoe College, Castle Rock High School, Newbridge High School and upper schools: Ashby School, King Edward VII Science and Sport College. The partnership was formed in 2011 and its main purpose is to improve learning outcomes and life chances for all secondary aged students attending the partnership schools. The aims of the ACE partnership are: To support each young person to develop potential and thus raise aspirations and achievement across the region; To create cost-effective, structured and coherent opportunities for schools to learn from one another and elsewhere, and to work together including the open sharing of best practice in order to provide the best possible range of educational experiences for all; and To maximise the opportunity provided by any agreed pooled funding to help address local and national agendas through working collaboratively and enriching opportunities to learn. The six ACE Headteachers meet regularly to ensure the shared vision and objectives are being embedded consistently across all six schools. The partnership work and the linked strategic plan are coordinated by a senior educational consultant who is employed part time by ACE. This collaborative approach filters down to Senior Leadership Teams, who are increasingly working together on joint projects and via shared CPD sessions. The top priorities in the current ACE strategic plan are to create a virtual through school across the six schools, and to improve quality assurance across the partnership. At department/faculty level, middle leaders and subject teachers are working on ACE assessment projects which are led by facilitators across the six schools and include all subject areas. This is to ensure the transitions between schools are as smooth as possible to maximise learning potential, and fulfil the overarching purpose and aims of the partnership. Together with its eleven feeder primary schools, the College is part of a learning development group to improve teaching and learning for all learners across our catchment area, and to again support a smooth transition from primary to secondary education. Together with all of the ACE schools and most of the partnership s feeder primary schools, the College is also an active member of the Forest Way Teaching School Alliance, and makes extensive use of its programmes for training and development. The College is a member of the highly effective North West Leicestershire School Sports Partnership. In order to support vulnerable students, the College has effective links with social services, the Youth Service, the National Health Service, Leicestershire Police, the Youth Offending Team, Supporting Leicestershire Families. The College works closely with North West Leicestershire District Council and Leicestershire County Council across the wide range of extended services that the College offers. The nature of our work means that we develop many other partnerships on an on-going basis to support relevant strands of our curriculum and provision. Page 5

8 TRUSTEES' REPORT (continued) OBJECTIVES AND ACTIVITIES OBJECTS AND AIMS The Academy Trust s objects are specifically restricted to the following: a) 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 ( the Academy ); and b) ancillary to the principal object set out in (a) above, to promote for the benefit of the inhabitants of Ibstock, Leicestershire and the surrounding areas the provision of facilities for the recreation or other leisure time occupation of individuals who have need of such facilities by reason of their youth, age, infirmity or disablement, financial hardship or social and economic circumstances or for the public at large in the interests of social welfare and with the object of improving the condition of life of the said inhabitants. OBJECTIVES, STRATEGIES AND ACTIVITIES As students, staff, parents and Trustees, our core values are expressed in our mission statement: Together, to learn and to grow to learn through ambition, listening and reflecting, to grow through responsibility, openness and nurturing, and to do this together as a caring supportive team. The College achieves its objectives by having high ambitions for all and a relentless drive at all levels to attain the highest achievement and personal development for all learners; by employing high calibre staff in all areas; by having high quality performance management; and by providing a wide range of appropriate professional development and training for staff. The College has set up four staff action groups charged with taking the College forward in key aspects of teaching, learning, behaviour and national priorities. PUBLIC BENEFIT The Trustees of the Academy Trust 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. The activities undertaken to further the Academy Trust s purpose for the Public Benefit include: Providing subsidised access to leisure facilities and transport to after school sporting activities for students; Providing subsidised visits to enhance future learning and employment opportunities (trips/visits); Providing additional curriculum activities (e.g. through NWLSSP); and Supporting and encouraging the community to participate in leisure and health activities, library access and use of community garden. Page 6

9 TRUSTEES' REPORT (continued) STRATEGIC REPORT ACHIEVEMENTS AND PERFORMANCE The percentage of students who are attaining a level 5 in English, Maths and Science is now in excess of 97% across all 3 subjects. The number of level 6 and 7 students is also extremely high and pleasing with over 80% of students attaining a level 6 in either English or Science. Science has continued this success, reporting 52% of students gaining level 7s in their final teacher assessments. Across the foundation subjects, the large majority of students are attaining levels 5s (all subjects in excess of 92%) and a high number of students achieving level 6 and level 7s across the curriculum. Students who enter with a low KS2 average score (below a 4.2/4c) are making good to outstanding progress across the curriculum in most areas. This is also the case for SEN students and largely true for students who have KS2 scores below level 5. Pupil Premium students in school made better progress than their counterparts across the county in Science and English but not in Maths. Pupil Premium progress gaps in school have fallen in all measures. Boys made better progress in all measures except for English APS where progress was equal and Science APS where girls secure more progress. The quality of teaching also continued to improve. At the time of the Ofsted inspection in October, teaching was defined as good in all subjects. This confirms the college s view. The College continues to invest in developing teaching through a focus upon literacy and curriculum development. 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. KEY FINANCIAL PERFORMANCE INDICATORS The overall balance (revenue and capital) at the end of the year 31st August was 11,867,000 made up of fixed assets of 12,586,000, school fund balance of 518,000 and the pension liability of 1,237,000. The reserves balance brought forward from the previous year was 676,000 excluding the fixed assets and pension liability. Included in that figure was 207,311 of committed which related to EFA capital maintenance received during the previous year but which required carrying over into 2014 to allow for the completion of roof repairs and replacement windows programme. Both projects were successfully completed in November The College has also built up reserves for further premises improvements and a provision for replacement equipment at the end of their life expectancy. The 2014 budget agreed by Trustees granted an in year deficit of 304,958 to reflect this. The College was again successful with a bid under the EFA condition improvement fund to continue with the window replacement programme. A further 128,609 was awarded and the project was completed in August. Page 7

10 TRUSTEES' REPORT (continued) Student numbers have continued to decrease however this was a known and planned for issue due to the detailed student forecasts taken from demographic data provided by the Local Authority. The data has enabled robust budget forecasts and planning to be made for the next five years. Projections which take into account the vast new housing developments in the immediate area forecast a growth in student numbers by September EFA funding per student increased slightly to 3, in relation to the Basic Entitlement Age Weighted Pupil Unit (AWPU) however Leicestershire does still remain one of the lowest funded Local Authorities and this places real challenges on the College's budget. The government announcements to the Fair Funding Formula from will hopefully address this imbalance and ease some of the constraints as a result. The College has staff policies and procedures in place which provide a framework to ensure that staff are treated fairly and consistently. This framework is consistent with the principles of public life objectivity, openness and accountability. The Equality and Diversity Policy addresses the statutory requirements of the Equality Act It supports the College s aim of improving all aspects of the physical environment of the school site and other resources to make the College inclusive for all. See Achievements and Performance section above for key performance indicators on student outcomes. FINANCIAL REVIEW The majority of the Academy's income is obtained from the DfE in the form of recurrent grants, the use of which is restricted. The grants received from the DfE during the year ended 31 August and the associated expenditure are shown as restricted in the Statement of Financial Activities. Trustees agreed an in-year overspend of 304,958 for the annual budget in this financial year. This was fully covered by the build-up of reserves detailed below under the reserves policy section, and in relation to the Condition Improvement Funds of 366,980 being received in the previous financial year which were spent on essential roof repairs and window replacements completed by November A five year budget forecast is in place and has been reviewed regularly by the full Governing Body. Budget projections hi-lighted a deficit position by due to falling student numbers, a cap on central funding and a rise in staffing costs due to changes in NI and pensions and an increase to minimum wage. Trustees agreed that based on the need for greater efficiency, clarity of structure and to address the projected deficit budget position, there was a need to reduce the staffing complement. A thorough review has been undertaken and whilst a formal restructure and consultation process has been completed, staff reductions have been obtained through a natural turnover and without impacting on the quality of teaching. Efficiencies savings and benchmarking opportunities are being explored on an ongoing bases that will reduce expenditure and the student numbers are projected to increase significantly due to new housing developments and growth already seen in the feeder primary schools. The Academies Finance Regulations Manual and policy have been reviewed by the Trustees and approval given to a scheme of financial delegation that allows responsibilities to be delegated to ensure the effective running of the Academy. The Academy provides a wide range of facilities and services to pupils of the College, feeder primary schools, and members of the community to generate further income (unrestricted ) The total income generated during the year ending 31 August was 582,000 and reported under note 3, Activities for Generating Funds. Page 8

11 TRUSTEES' REPORT (continued) Pupil Premium and Year 7 literacy and numeracy catch-up premium received have allowed the Academy to provide in whole or in part interventions including specific learning groups, additional mentoring and 1:1 working, early morning, lunchtimes, afterschool and holiday activities, and reduced class sizes. Full details can be found on the Academies website at The overall balance (revenue and capital) at the end of the year 31 August was 11,867,000 made up of fixed assets of 12,586,000, school fund balance of 392,000, GAG of 126,000 and the pension liability of 1,237,000. The net book value of fixed assets was 12,586,000 and movements in tangible fixed assets are shown in note 15 to the financial statements. The assets were used exclusively for providing education and the associated extended and support services of the Academy. RESERVES POLICY The Trustees' aim is to spend the DfE grants on the pupils in the current year to which it is intended. The buildup of any reserves for capital projects would be for longer term and only in relation to priorities detailed in the College improvement plan. At 31 August the total comprised: Unrestricted 392,000 Restricted: Fixed asset 12,586,000 GAG 126,000 Pension reserve (1,237,000) Total 11,867,000 The deficit on the pension reserve relates to the non- teaching staff pension scheme where, unlike the teachers scheme, separate assets are held to fund future liabilities as discussed in note 25. The deficit can be met in the longer term from any combination of increased employer or employee contributions, increased government funding or changes to scheme benefits. The restricted will be spent in accordance with the terms of the particular. Page 9

12 TRUSTEES' REPORT (continued) PRINCIPAL RISKS AND UNCERTAINTIES The principal risks facing the Academy are: Financial risk 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 regular budget forecasting, pupil forecasts taken from demographic data and site maintenance plans. The Senior Leadership Team and Trustees have identified strategies to address the potential deficit and long term future financial stability. Performance risk mitigated by self-evaluations, regular training, CPD and DfE guidance. Reputational risk mitigated by policies, procedures and internal controls. Risks associated with personnel (including recruitment and retention) - mitigated by staff policies, procedures, CPD and regular meetings. Like every business, risk is an inherent aspect of the Academy and if not managed appropriately it has the potential to adversely impact on its success. Sound risk management principles must be in place and become part of the routine management activity. The Academy aims to use risk management to take better informed decisions and improve the probability of achieving its strategic and operational objectives. INVESTMENT POLICY Trustees are firmly committed to ensuring that all under their control are administered in such a way as to maximise return while minimising risk. An Investment policy has been agreed by the full Governing Body. The Academy manages its cash balances to provide for the day-to-day working operational requirements and longer term priorities, whilst protecting the real value of any surplus cash. The objective is to optimise returns, but also ensure that investments are such that there is no risk of loss to these and capital invested is protected against inflation. Regular cash flows are prepared and monitored to ensure that there are adequate liquid to meet all commitments. Where the cash flow identifies a base level of cash that will be surplus to requirements, these are invested in accordance with the Governing Body approved investment strategy. Investments maintained during the financial year include a Virgin Money account and short term treasury deposits with Lloyds Bank. All interest and capital is repaid into the Academy s current account with Lloyds Bank. Page 10

13 TRUSTEES' REPORT (continued) PLANS FOR FUTURE PERIODS In order for Ibstock Community College to develop our stated vision of Together, to learn, to grow the College will focus on the following priorities: Key Priority Success Measures Ensuring high quality outcomes for students in terms ofgap closed in terms of target groups, including Pupil the skills, knowledge, understanding and experiencespremium, middle ability boys and students with special through a curriculum that has breadth, depth and cleareducational needs. preparation for the rigours of GCSE and Post 16 education. Progress measures in English match progress measures in Maths and Science. Students have clear progression map through KS3 to KS4 and beyond. Developing partnerships that enable students totransition arrangements for all students entering and experience a range of networks and routes throughleaving Ibstock Community College are judged to be education. highly effective by partner schools, parents and students. Parent partnerships, student leadership programmes and extra-curricular activities have high levels of engagement. Ensuring the College has a rigorous and effectiveace curriculum and assessment map is implemented evaluation of provision to ensure the best possibleat Ibstock Community College. value for students. The College self-evaluation meets OFSTED outstanding judgements. College budget is efficient through effective curriculum model and leadership structure. Page 11

14 TRUSTEES' REPORT (continued) DISCLOSURE OF INFORMATION TO AUDITOR Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that: so far as that Trustee is aware, there is no relevant audit information of which the charitable company's auditor is 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 relevant audit information and to establish that the charitable company's auditor is aware of that information. This report, incorporating the Strategic Report, was approved by order of the Board of Trustees, as the company directors, on 10 December and signed on the board's behalf by:... Richard Spurr Chair of Trustees... David Phillips Accounting Officer Page 12

15 GOVERNANCE STATEMENT SCOPE OF RESPONSIBILITY As Trustees, we acknowledge we have overall responsibility for ensuring that Ibstock Community College has an effective and appropriate system of control, financial and otherwise. However such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives, and can provide only reasonable and not absolute assurance against material misstatement or loss. The Board of Trustees has delegated the day-to-day responsibility to the Principal, as Accounting Officer, for ensuring financial controls conform with the requirements of both propriety and good financial management and in accordance with the requirements and responsibilities assigned to it in the funding agreement between Ibstock Community College 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 8 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 Daphne Robinson 2 8 Jonathan O'Farrell 0 1 John Kailofer, Vice Chair 8 8 Deanna Middleton 7 8 Louise Reeve 7 8 Virge Richichi 4 8 Robert Trigg 7 8 Vanessa Sulley 2 4 Stephen Hill 5 8 Rupert Jarvis 0 1 Lee Sheldon, Acting Principal and Accounting 1 1 Officer Linda Higginson 4 4 Robert Senior 6 8 Richard Spurr, Chair of Trustees 7 8 Gary Grey, Chair of Resources 7 8 Edward Hines 3 4 David Phillips, Principal and Accounting Officer 7 7 Sandra Crompton 7 8 Composition and development of the Board of Trustees The total movement of Trustees saw four resignations and one new appointment not including the Principal. The approach adopted by the Trustees during this financial year was to retain all responsibilities at full Governing Body level and not to delegate down to sub-committees. Full Governing Body meetings took place every 4 6 weeks which provided timely support to SLT and approval when required to the restructure and consultation process. Page 13

16 GOVERNANCE STATEMENT (continued) Governance reviews Trustees have a training and development (T&D) Governor who ensures that they have sufficiently up-to-date skills for the governance roles that they are undertaking. The Governing Body has undertaken a skills audit and Trustees continue to attend regular training and briefing events held by Governors Development Service (GDS). Records are maintained of training undertaken. Following training events, Governors are asked to produce a report to share key information which is of interest to the rest of the Governing Body. The clerk is also included in training plans and has completed the new National Clerks Development Programme during the year. Any ongoing skills gaps are also specifically advertised in Governor vacancy announcements to ensure the right balance of knowledge and experience is maintained. Trustees engage external educational advisers to guide governance of specific tasks and give overall feedback on governance. This includes support and challenge through the School Improvement Partner and support through the ACE partnership. GSET software is used to record and assess our effectiveness against a set of national standards. Action plans are produced to address areas for development over a rolling review programme. The Trustees have developed a "Governors' pack" to collate all information and current data needed by a Trustee in one place. This will ensure that there is a sound and accessible evidence base to support Governor self-evaluation. The ACE Partnership performs an annual health-check, which includes a view on governance. The ACE partnership has trained a team to undertake a quality assurance process across the partnership this will involve evaluating governance. The Key for School Governors software has also provided a knowledge bank of guidance and up-to-date information which ensures the Trustees are kept up-to-date with important changes nationally and good practice in other areas of the country. Local good practice is shared through GDS briefings and local partnership arrangements. REVIEW OF VALUE FOR MONEY As Accounting Officer, the Principal 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: Further funding programmes: Additional funding has been made available to support basic literacy, by way of 1:1 support with reading. There is clear evidence that there has been a direct increase in the reading ages of all individuals who received this support. In some cases, students reading ages increased by 4, 5 or even 6 years. The Academy has audited its use of Pupil Premium money and a summary of the outcomes achieved are presented on the college website. Outcomes for Pupil Premium students in English and Maths are in line with other students and their attendance and behaviour is also in line with other students. Page 14

17 GOVERNANCE STATEMENT (continued) Partnership responses: Evidence shown above in Achievements and performance demonstrates the effectiveness of the improvements made. Student and parent responses to surveys are overwhelmingly positive demonstrating dramatically increased attitudes of school from all stakeholders. 98% of parents are happy with the progress their children make at school and 98% of the parents say that the College deals with their concerns in a timely and effective way. Reviewing controls and managing risks: The Trustees have reviewed the key risks to which the Academy Trust is exposed together with the operating, financial and compliance controls that have been implemented to mitigate those risks. The risks have been prioritised and assessed as to the likelihood of the occurrence and the potential impact on the Academy Trust. Based on the audit tests undertaken and enquiries made by Leicestershire County Council s Audit Services on the 24 April their conclusions are that the Academy s financial systems are considered to be adequate and only one recommendation was made. The Trustees have also reviewed the reserve levels of the Academy as this is done on an annual basis as a minimum, when setting the budget. An appropriate level of free reserves has been determined and priority has been given to addressing a short-term forecasted reduction in student numbers and therefore associated income. In the medium to longer term, student numbers taken from demographic data and housing gains forecast an upward trend again which has also been a consideration when putting strategies in place to address this issue. To maximise the use of resources, budget holders, senior management and governing committees receive regular budget reports which are scrutinised to ensure the most effective use of resources to meet the objectives of the Trust. An investment policy is in place which stipulates that all new investment accounts can only be opened if considered low risk. Balances have therefore, been transferred to higher UK interest rate accounts to ensure a maximum return on surplus identified from the cash flow statement and in line with Governor s approval. Better purchasing: The Academy Trust ensures it achieves best value for money from all purchases. The Financial Regulations Manual sets out its meaning and considerations in relation to quality, quantity and best price. Acknowledging that a large proportion of the purchases made have been paid for with public, and therefore working practices adopted by the Academy have been based on the Seven Principles of Public Life. Page 15

18 GOVERNANCE STATEMENT (continued) Examples of steps undertaken to ensure value of money when purchases have been made include: Sourcing from approved suppliers and/or via a purchasing consortium (Eastern Shires Purchasing Organisation). These include both the gas and electric to obtain maximum discounts available; Contracts reviewed on renewal to ensure they will be relevant, fit for purpose and best value going forward; Considered alternative purchasing on line in order to benchmark best value and price; Sourced services with other local schools to maximise purchasing power with bulk volumes to again attract best price; Considered all purchases for necessity and student achievement before authorising funding; Undertaken in-house if cheaper and availability of skilled resources; Large purchases made have been subject to a robust tendering process approved by the Governing Body and meet with EU procurement rules; and Insurance levels are reviewed annually and used cost effectively to manage risks. Insurance is currently purchased via the Local Authority which again is another example of gaining value for money through a consortium. Maximising Income Generation: The Academy has a wide range of community users who utilise college facilities and which have generated additional income during the period. The majority of the income has been derived from the Academy run nursery and leisure centre and the in-house catering provision. The Academy Trust was successful in being awarded a grant from the EFA Capital Maintenance Fund for roof repairs and replacement of windows. The total amount granted was 366,980. This programme of repair has been undertaken. Cuts have continued to be made by the Local Authority which has meant that the income stream for library services looks uncertain. The Academy is therefore, exploring alternate solutions for these facilities to mitigate this risk. Lessons learned: Following appraisal of previous strategies, the Academy Trust undertook a restructuring of staffing in order to tackle a potential budget deficit and to ensure the sustainability of the Academy s financial and physical infrastructure. A five year budget forecast has been created which supports this process. To be able to fulfil the Academy s aim to equip every student to maximise their potential for their future life there needs to be a continual focus on value for money. The Senior Leadership Team recognises the constant need to review all purchases and remains committed to ensure that staff are fully aware of the Seven Principles of Pupil Life. THE PURPOSE OF THE SYSTEM OF INTERNAL CONTROL The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk of failure to achieve policies, aims and objectives; it can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an ongoing process designed to identify and prioritise the risks to the achievement of Academy Trust policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically. The system of internal control has been in place in Ibstock Community College for the year ended 31 August and up to the date of approval of the Annual Report and financial statements. Page 16

19 GOVERNANCE STATEMENT (continued) CAPACITY TO HANDLE RISK The Board of Trustees has reviewed the key risks to which the Academy Trust is exposed together with the operating, financial and compliance controls that have been implemented to mitigate those risks. The Board of Trustees is of the view that there is a formal ongoing process for identifying, evaluating and managing the Academy's significant risks, that has been in place for the year ended 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. THE RISK AND CONTROL FRAMEWORK 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 Resources 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; 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 (LCC) as internal auditor. A visit by a member of LCC s Audit Service was made to Ibstock Community College Academy on the 24 April to undertake a financial health check' audit in accordance with the agreed plan of assurance work in the three-year service schedule agreement. This audit involved a high level appraisal of the financial systems and procedures and a review of the key internal controls in place surrounding financial issues. In particular the testing carried out in the current period included: Payroll Purchases Payment Control account and bank reconciliations A report was issued to the Chair of Trustees stating that the financial systems and procedures were considered to be adequate and only one recommendation made. REVIEW OF EFFECTIVENESS As Accounting Officer, the Principal has responsibility for reviewing the effectiveness of the system of internal control. During the year in question the review has been informed by: the work of the internal auditor; the work of the external auditor; the financial management and governance self-assessment process; and 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 Resources Committee and a plan to address weaknesses and ensure continuous improvement of the system is in place. Page 17

20 GOVERNANCE STATEMENT (continued) Approved by order of the members of the Board of Trustees on 10 December and signed on its behalf, by:... Richard Spurr Chair of Trustees... David Phillips Accounting Officer Page 18

21 STATEMENT ON REGULARITY, PROPRIETY AND COMPLIANCE As Accounting Officer of Ibstock Community College 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. 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. 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.... David Phillips Accounting Officer Date: 10 December Page 19

22 TRUSTEES' RESPONSIBILITIES STATEMENT The Trustees (who act as Governors of Ibstock Community College 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 published 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; 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 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 10 December and signed on its behalf by:... Richard Spurr Chair of Trustees Page 20

23 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF We have audited the financial statements of Ibstock Community College 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 Trustees, 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 Trustees those matters we are required to state to them in an Auditor's 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 Trustees, as a body, for our audit work, for this report, or for the opinion we have formed. RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND AUDITOR 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. OPINION ON FINANCIAL STATEMENTS In our opinion 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. Page 21