PARKSIDE FEDERATION ACADEMIES

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 16 Trustees' Responsibilities Statement 17 Independent Auditor's Report Independent Reporting Accountant's Assurance Report on Regularity Statement of Financial Activities Balance Sheet 24 Cash Flow Statement 25 Notes to the Financial Statements 26-48

3 REFERENCE AND ADMINISTRATIVE DETAILS OF THE ACADEMY, ITS TRUSTEES AND ADVISERS Members Anne Campbell, Chair of Govenors Andrew Hutchinson OBE, Executive Principal 1,2,3 Nicola Madan Schiannini, Staff Governor 2 Andy Thornley, Staff Governor 1 Steven Broad, Parent Governor (retired 13 July 2013) 2 Samira Anderson, Parent Governor 1 Louise Crook, Parent Governor 1 Paula Bishop, Parent Governor (resigned 31 August ) 1 Joan-Pau Rubies, Parent Governor Lucy Nethsingha, Comminuty Governor 1 Dan Roach, Community Governor 2 Helen Murley, Foundation Governor 2 Oliver Drury, Foundation Governor 2 Ashish Dasgupta, Foundation Governor 3 Catherine Rawlings, Parent Governor 2 Esther Chesterman, Parent Governor (appointed 7 October 2013) Richard Rippon, Community Governor (appointed 2 October 2013) 3 Julia Costello, Staff Governor (appointed 24 October 2013) 2 Dan Roberts, Staff Governor (appointed 24 October 2013) 3 Trustees Don Grant, Staff Governor (resigned 17 October 2012) Aman Coonar, Parent Governor (resigned 30 November 2013) 1 Company registered number (Registered in England and Wales) 1 Education 2 Business - Staff and Resources 3 Audit and Risk Registered office Parkside Community College Parkside Campus Parkside Cambridge CB1 1EH Page 1

4 REFERENCE AND ADMINISTRATIVE DETAILS OF THE ACADEMY, ITS TRUSTEES AND ADVISERS Administrative details (continued) Company secretary Mary Charlesworth (to 31 March ), Miles Carter (from 1 April ) Clerk to the Governors Mary Charlesworth (to 31 March ), Sharon Murray (from 1 April ) Accounting Officer Senior management team Independent auditor Bankers Solicitors Andrew Hutchinson OBE Andrew Hutchinson OBE, Executive Principal Beverley Jones, Principal, Coleridge Community College Sian Foreman, Director of Quality Assurance Miles Carter, Business and Finance Director MHA MacIntyre Hudson Chartered Accountants Statutory Auditors 8-12 Priestgate Peterborough PE1 1JA HSBC Bank Plc St Andrews Street Cambridge CB2 3BZ Winkworth Sherwood LLP Minerva House 5 Montague Close London SE1 9BB Page 2

5 This draft produced on 6/6/ 19:39 TRUSTEES REPORT The Trustee s, who are also directors for the purposes of company law, have pleasure in presenting their report and the financial statements of the charitable company for the year ended 31 August. Reference and administrative details Reference and administrative details are shown in the schedule of reference and administrative details on pages 1 to 2 of the financial statements. Structure, Governance and Management CONSTITUTION The Academy Trust is a company limited by guarantee and an exempt charity. The company was incorporated on 28 th March The charitable company s Memorandum and Articles of Association are the primary governing documents of the academy trust. The Governors act as the trustees for the charitable activities of Parkside Federation Academies Limited and are also the directors of the charitable company for the purposes of company law. The charitable company is known as Parkside Federation Academies Limited. Details of the Governors 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 Academies have purchased insurance to cover governors and officers from claims arising from negligent acts, errors or omissions occurring whilst on Academy business. Details of the costs can be found in note 14 to the accounts. PRINCIPAL ACTIVITIES Parkside Federation Academies converted to Academy status on 28 th March 2011 at which point the entity s operations commenced. The Academy Trust's principal activities are to advance for the public benefit education by establishing, maintaining, carrying on, managing and developing schools offering a broad and balanced curriculum. Method of Recruitment and Appointment or Election of Governors The Governing Body comprises of 20 members as set out below: 7 Parents (elected by parents with no fewer than two from each academy, namely Coleridge Community College and Parkside Community College) 4 Community (appointed by the Governing Body) 4 Foundation (appointed by the City of Cambridge Education Foundation) 4 Staff (elected by Staff and drawn from both teaching and non-teaching areas) 1 Executive Principal (ex officio) Page 3

6 This draft produced on 6/6/ 19:39 TRUSTEES REPORT (CONTINUED) The Board of Trustees is responsible for appointing Community Governors. Parent governors and staff governors are elected by a secret ballot and Foundation Governors are appointed by the City of Cambridge Education Foundation. The Board of Trustees encourages a range of relationships with a variety of individuals who bring additional skills and expertise that advances, informs and strengthens the work of the Governing Body. The term of office for all governors (with the exception of the Executive Principal) is four years from the date of appointment/election or until such time as they retire or resign from office. POST BALANCE SHEET EVENT Since the year end the structure of the Governing body has been amended to reflect the structure of a Multi Academy Trust with a more compact Governing Body that delegate s some authority to Local Governing Bodies who focus on the individual needs of each school. This structure was agreed unanimously by all Governors in July and full details of these changes are in the Chair s statement as well as being fully reported on the Federation website. POLICIES AND PROCEDURES ADOPTED FOR THE INDUCTION AND TRAINING OF GOVERNORS The Board of Trustees provides a comprehensive induction programme for all new or re-appointed or re-elected Governors (as the case may be). The induction programme may be adjusted to suit the particular needs of the individual governor. All governors have access to copies of policies, procedures, minutes, accounts, budgets, plans and other documents that they will need to undertake their role as governors. The Board of Trustees also provides a variety of initiatives and opportunities to support ongoing training and development to all governors. The Governors are responsible for setting general policy, adopting an annual plan and budget, monitoring the Academy by the use of budgets and making decisions about the direction of the Academy, capital expenditure and senior staff appointments. The Executive Principal together with the Head Teacher of Coleridge Community College, the Director for Quality Assurance and the Business and Finance Director form the Academies Executive Board. These managers control the academies at an executive level implementing the policies laid down by the Governors and reporting back to them. As a group the Academies Executive Board is responsible for the authorisation of spending within agreed budgets and the appointment of staff. Interview panels for management posts always contain a Governor. Some spending control is devolved to members of the Middle Management Team, with limits above which a member of the Academies Executive Board must countersign. Parkside Federation Academies is a member of Cambridge Teaching Schools Network which provides teacher training to a number of schools across the County. Page 4

7 This draft produced on 6/6/ 19:39 TRUSTEES REPORT (CONTINUED) RISK MANAGEMENT The Governors have assessed the major risks to which the Academy is exposed, in particular those relating to the specific teaching, provision of facilities and other operational areas of the Academy, and its finances. The governors have implemented a number of systems to assess risks that the school faces, especially in the operational areas (e.g. in relation to teaching, health and safety, bullying and school trips) and in relation to the control of finance. They have introduced systems, including operational procedures (e.g. vetting of new staff and visitors, supervision of school grounds) and internal financial controls (see below) in order to minimise risk. Where significant financial risk still remains they have ensured they have adequate insurance cover. The Academy has an effective system of internal financial controls and this is explained in more detail in the Governance statement. CONNECTED ORGANISATIONS, INCLUDING RELATED PARTY RELATIONSHIPS City Of Cambridge Education is the former Trust that managed the Schools prior to becoming Academies. This relationship has continued as CCEF actuals owns the Land and Buildings from which the Schools operate. CCEF has the right to appoint up to four Governors Parkside Federation Academies Limited City of Cambridge Education Foundation, (CCEF), a company incorporated in England registration number and an exempt charity regulated by the EFA. The principal activity of City of Cambridge Education Foundation is to advance the education of pupils at Parkside Federation Academies and other local schools and of the community residents within the City of Cambridge, both young people and adults. Objectives and Activities OBJECTS AND AIMS The principal object and activity of the charitable company is the operation of Parkside Federation Academies which provides education for pupils of different abilities between the ages of 11 and 19 in respect of Parkside Community College, and 11 to 16 for Coleridge Community College. OBJECTIVES, STRATEGIES AND ACTIVITIES The main objectives of the Academies identified between 1 st September 2013 to 31 st August remain as summarised below: OUR VISION EXCELLENCE, INNOVATION AND COLLABORATION Our mission is to establish a partnership of community schools as local life-long learning centers of excellence. We want our schools to: Promote an enjoyment of learning, the highest possible achievement in all its forms, and a sense of success for all learners. Develop confident and responsible young people. Value and celebrate diversity, and work to eliminate discrimination, promote equality and foster good relations. Be a source of pride and resource for the local community. Page 5

8 This draft produced on 6/6/ 19:39 TRUSTEES REPORT (CONTINUED) We believe that human scale learning environments foster the positive relationship that enables teachers to know their students well and make possible a more holistic approach to learning that engages the whole person. For many young people a human scale learning environment can also make the difference between success and failure. We aim to develop inquiring, knowledgeable and caring young people who help to create a better, more peaceful and environmentally sustainable world through intercultural understanding and respect. STRATEGIC INTENTIONS To improve the way that all learners particular needs are met and their success is recognised so that all staff put our students success above all else. To improve the learning process to be active, participative and relate to and expand young people s experience, including their family background. To celebrate Coleridge and Parkside as distinctive, small-scale learning communities where there is equality of opportunity and young people and staff are known as individuals and supported to achieve their full potential. To develop the power of our staff and encourage them to think big and find creative ways to work better and smarter. To improve the engagement of all parts of the school community, including students, parents, staff, governors and trustees, in sharing in decision making as appropriate. PUBLIC BENEFIT The Academy promotes education for the benefit of the local community of the City of Cambridge and offers recreational facilities to a variety of local community groups outside of school hours for the benefit of the general public. Community based projects are also undertaken throughout the year by staff and students which further enhance the public benefit. OFSTED During the financial year, both Coleridge and Parkside Community Colleges continued with constructive dialogues with Ofsted and HM Inspectors of Schools to determine that the actions taken were effective in returning the schools to Good or better. The GCSE exam results were encouraging with Parkside achieving the highest levels of progress in English and Mathematics for Cambridgeshire schools and with Coleridge returning to within 2% of the National Average. The Governing Body is pleased to note that both Academies continue on track to gain Good or better judgment s in the future. The Governing Body retains its long term commitment that all schools it operates should aspire to be outstanding. Achievements and performance The Academy is now in its fourth year of operation and continues to achieve the forecast numbers of students. Total students in the year ended 31 August number approximately 1,340. Whilst Parkside remains at capacity with additional growth in The Sixth, Coleridge pupil numbers have declined. However with record numbers of Parents attending the recent open evening the Executive are confident that student numbers will return to capacity over the next few years. Page 6

9 This draft produced on 6/6/ 19:39 TRUSTEES REPORT (CONTINUED) To ensure that standards are continually raised the Academy: Operates a programme of observation of lessons; is visited by inspectors; undertakes a comparison of results from entry to Key Stage 3 to GCSE. The Academy also participates in national programmes looking at added value through the key stages. Full details of the students examination achievements are disclosed on the Federation website GOING CONCERN After making appropriate enquiries, the Governing Body 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 Academy Trust uses a number of financial key performance indicators to monitor the financial success of the Academy Trust and progress/improvement against the targets set. Staffing costs are monitored as a percentage of operating income. For the year ended 31 August staffing costs amounted to 67% of operating total income ( %). The Academy Trust also monitors its operating surplus or deficit as a percentage of operating income. For the year ended 31 August the operating surplus equated to 1.2% of total income ( %). Financial review Most of the Academy s income is obtained from the DfE in the form of recurrent grants disbursed via the Education Funding Agency (EFA), the use of which is restricted to particular purposes. 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. The Academy also received grants for fixed assets from the EFA and other funding bodies. In accordance with the Charities Statement of Recommended Practice, Accounting and Reporting Charities (SORP 2005), such grants 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 the assets concerned. During the year ended 31 August, total expenditure (excluding restricted fixed asset ) of 8,865,360 was more than covered by recurrent grant funding from the DfE together with other incoming resources. The excess of income over expenditure for the year (excluding restricted fixed asset ) was 106,622. At 31 August the net book value of fixed assets was 11,517,252 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 support services to the pupils of the Academy. Page 7

10 This draft produced on 6/6/ 19:39 TRUSTEES REPORT (CONTINUED) FINANCIAL AND RISK MANAGEMENT OBJECTIVES AND POLICIES The Academy s risk management procedures are outlined above. The Trustees believe that its risk management procedures mitigate as far as is reasonably possible the principal risks and uncertainties facing the Academy Trust. The Academy Trust does not have significant trade debtors as invoiced income is a minor ancillary activity. Cash flow is monitored daily by the Academy Trust and budgets presented to the Governing body consider cash flow and liquidity in detail. PRINCIPAL RISKS AND UNCERTAINTIES Through the Academy s risk management procedures, it has considered its principal risks and uncertainties and planned mitigating action wherever possible. The principal risks and uncertainties identified by the Governing Body are: Change in government funding regime the Academy receives 92% of its income from Government agencies Reduction in student numbers either through competition or a damaged reputation/falling standards Key controls that the Academy has in place to mitigate these risks include: Attendance at government funding agency conferences and participation in focus groups to keep up to date with and influence as far as possible Academy funding methodology Appropriate organisational structure with several tiers of review Internal quality assurance reviews and self-assessments RESERVES POLICY The governors review the reserve levels of the Academy regularly. This review encompasses the nature of income and expenditure streams, the need to match income with commitments and the nature of reserves. The governors have determined that the appropriate level of free reserves should be equivalent to 6 weeks expenditure, approximately 600,000. The reason for this is to provide sufficient working capital to cover delays between spending and receipt of grants and to provide a cushion to deal with unexpected emergencies such as urgent maintenance. The academy s current level of free reserves (total less the amount held in fixed assets and restricted ) is 406,735 which is less than is needed. The Academy intends to continue building up free reserves to the level needed. FINANCIAL POSITION The Academy held fund balances at 31 August of 11,589,836 comprising 513,535 of restricted, 406,734 of unrestricted general, 11,807,567 of restricted fixed asset and a pension reserve deficit of 1,138,000. Governors are mindful of the significant increase in the Pension Scheme Deficit for staff employed on the Local Government Pay Scales, whilst the deficit is being funded over a number of years the increase means that the annual deficit payment will increase and put additional pressure on the Annual Budget. Page 8

11 This draft produced on 6/6/ 19:39 TRUSTEES REPORT (CONTINUED) INVESTMENT POLICY The Governing Body has approved a treasury management statement as part of the Financial Procedures Manual, which documents the Academy Trust s investment policy. The Trust s investment policy is to invest surplus cash reserves with High Street banks with a high credit rating where the capital invested is guaranteed. Investment returns are market tested periodically to ensure that returns are maximised whilst safeguarding the invested. Plans for Future Periods The Academy Trust will continue striving to improve the levels of performance of its students at all levels and will continue its efforts to ensure its students get jobs or a place in further or higher education once they leave. The Academy Trust will also increase its recruitment up to the new agreed levels, accepting transfers from other schools and colleges into years wherever possible. Funds Held as Custodian trustee on Behalf of Others The Academy Trust holds no on behalf of others as Custodian trustee. Performance This summer s examination performance appears to have held up well locally. Coleridge continued their steady improvement and though this was not as good as was predicted it has given parents added confidence that the school is an improving school. We were pleased to see over 200 families attend the open evening at Coleridge this term and we hope this will lead to the PAN of 120 students being achieved next year. Parkside s results reflected a less able cohort but were nevertheless the best results in Cambridgeshire. Progress measures at both schools indicated good performance meeting the national average at Coleridge and exceeding it at Parkside. It is felt that both schools are on target to achieve their potential with a good rating in Page 9

12 This draft produced on 6/6/ 19:39 TRUSTEES REPORT (CONTINUED) Chair s Statement - Governance Restructure In response to the Leadership and Governance review, carried out in June 2013, we have set up a smaller Federation GB and local Governing Bodies for each of the schools in the Federation. The Federation Governing Body is responsible for all the statutory decisions made by the Governors and the members of it are Directors or Trustees of the Academy Trust. It has 4 Committees. These are Quality Assurance, Audit and Risk, Business and Resources and Remuneration. The objectives of improving each individual school has been delegated to Local Governing Bodies. They challenge and support the Headteacher and ensure that the standards set by the Federation Governing Body are met. This structure has ensured smaller and more cohesive decision-making bodies. The objectives of each are clear but there are still some bedding-down issues in reporting and accountability which need to be sorted. Alongside the Governance structure, there is an Executive Board consisting of the senior staff of the Federation. This is the body which implements the strategic decisions made at FGB level and also carries out some functions which are delegated to it by the FGB. We are still awaiting DFE approval for changes to our constitution, but we have decided to operate the new structure from the beginning of the academic year -15, as though the approval had been granted. As a means of involving the temporary Governing Body at Trumpington in our decision making process we have invited Mark Carrington as Chair to join our FGB as a non-voting participant. 3 other governors from the temporary Governing Body will join the 3 Committees, again as non-voting participants. Concurrently with the restructure of governance has been a restructure of the staffing arrangements. There are now Head of Departments situated in each school who are able to carry out Federation policies in ways that are appropriate for that student population. Good practice in one school is being shared with the other and the evidence is that both schools are benefiting from the greater autonomy and the freedom to implement policies in the ways that suit them best. Setting the strategic direction and the ethos and values At the end of the Summer term 2013, a 3 year Federation Improvement Plan was developed in consultation with governors and parents. During the Autumn term 2013, further separate school plans were developed and agreed. These are now monitored through the reports of the Executive Principal to the Federation Governing Body and the Headteachers to each of the LGBs by outlining progress against each of the objectives that have been set. Further objectives are being set against key performance indicators which measure school performance for student attainment and progress, behaviour and attendance, parental and staff satisfaction and financial performance. Once determined, the targets will be made public and will become the overall targets for the Federation. Page 10

13 This draft produced on 6/6/ 19:39 TRUSTEES REPORT (CONTINUED) Monitoring Progress The documentation presented to Governors on attainment and progress has been thoroughly overhauled. External assessment and better visual presentations are helping governors to understand the strengths and weaknesses across the Federation and thus enabling a higher standard of questioning about performance and its remedies where necessary. Two governors have undertaken training on the Raise Online national database, which enables detailed comparison of performance with similar schools. All Governors have become familiar with data presented by the Fisher Family Trust which enables the identification of underperforming groups within the schools. A better understanding of the school s own data and new software (Go4Schools) has given both staff and governors new tools to monitor performance throughout the school, not only for individual students but for teaching and pastoral groups. This assists in the assessment of individual teacher performance and is used in helping to set pay levels which must now be determined by performance. The appointment of an experienced Director as a Foundation Governor has enabled the Audit and Risk Committee to be set up and put on a proper footing. An extensive risk register has been produced and discussed and Financial Regulations have undergone thorough revision. The appointment of a Business and Finance Director has revolutionised the presentation of financial data, permitting governors to assess how well the Federation is doing against the budget set and enabling more intelligent decision-taking. This term we have welcomed a new clerk. Sharon Murray has an excellent understanding of the governance framework and is already contributing in a very positive way to the needs of Governing Body as a whole. She is also clerk to a number of feeder Primary schools and is a further link to promote better understanding between Primary and Secondary sectors. Performance This summer s examination performance appears to have held up well locally. We await the publication of national data which will inform how well we did against national expectations. Due to changes in some of the criteria used to measure performance it is expected that there will be a dip in exam results nationally, which will enhance the performance of our schools against national averages. We were pleased to see over 200 families attend the open evening at Coleridge this term and we hope this will lead to a full year group in Parkside s results were the best results in Cambridgeshire. Progress measures at both schools indicated good performance meeting the national average at Coleridge and exceeding it at Parkside. It is felt that both schools are on target to achieve their potential with at least a good rating in 2016 We are looking forward to continuing our good progress during -15. Anne Campbell November Page 11

14 This draft produced on 6/6/ 19:39 TRUSTEES REPORT (CONTINUED) Auditor In so far as the Governors are aware: There is no relevant audit information of which the charitable company's auditor is unaware; and The Governors 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. MHA MacIntyre Hudson are deemed to be re-appointed under section 487(2) of the Companies Act Approved by order of the members of the Governing Body on and signed on its behalf by: Registered office: Governors Parkside Campus Parkside Cambridge CB1 1EH Anne Campbell Chair to Governors Signed on behalf of the Page 12

15 This draft produced on 6/6/ 19:39 GOVERNANCE STATEMENT SCOPE OF RESPONSIBILITY As Governors, we acknowledge we have overall responsibility for ensuring that Parkside Federation Academies Limited 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 Governing Body has delegated the day to day responsibility to the Executive 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 Parkside Federation Academies Limited and the Secretary of State for Education. They are also responsible for reporting to the Governing Body any material weaknesses or breakdowns in internal control. GOVERNANCE The information on governance included here supplements that described in the Governors' Report and in the Statement of Governors' Responsibilities. The Full Governing Body has formally met 5 times during the year. Attendance during the year at Full Governing Body meetings of the Governing Body was as follows: Governor FGB Attended FGB Possible Business & Resources Attended Business & Resources Possible Anne Campbell (Chair) Samira Anderson 4 4 Paula Bishop 3 4 Steve Broad 3 4 Louise Crook 3 4 Andrew Hutchinson (Executive Principal) Nicola Madden 3 4 Helen Murley Louise Nethsingha 2 4 Catherine Rawlings Dan Roach 3 3 Andy Thornely Oliver Drury 1 4 Paula Bishop 3 3 Ashish Dasgupta 4 4 Dan Roberts 3 3 Esther Chesterman 3 3 Julie Costello 3 3 Rich Rippin Joan-Pau Rubies 3 4 The Full Governing Body held 2 extraordinary meetings during the year to consider items of special business. Page 13

16 This draft produced on 6/6/ 19:39 GOVERNANCE STATEMENT (CONTINUED) 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 Parkside Federation Academies Limited for the year ended 31 August and up to the date of approval of the annual report and financial statements. CAPACITY TO HANDLE RISK The Governing Body 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 Governing Body 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 ending 31 August and up to the date of approval of the annual report and financial statements. This process is regularly reviewed by the Governing Body. 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 Governing Body; Regular reviews by the Finance and General Purposes 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; Identification and management of risks. The Governing Body has considered the need for a specific internal audit function and has decided not to appoint an internal auditor. However, the governors have appointed MHA MacIntyre Hudson to support the Responsible Officer ('RO') role by undertaking testing on a termly basis. The RO's role includes giving advice on financial matters and performing a range of checks on the Academy Trust's financial systems. On a termly basis the RO s reports and findings are reported to the Governing Body, covering the operation of the systems of control and the discharge of the Governing Body's financial responsibilities. There were four reports in the year and no breaches were reported in the control systems, but recommendations have been made and discussed. Further to the publication of the new Academies Financial Handbook, an audit committee has been established with the aim of enhancing confidence in the integrity of the organisation s processes and procedures relating to internal control and corporate reporting. This committee met four times during the financial year. Page 14

17 This draft produced on 6/6/ 19:39 GOVERNANCE STATEMENT (CONTINUED) REVIEW OF EFFECTIVENESS As Accounting Officer, the Executive Principal has responsibility for reviewing the effectiveness of the system of internal control. During the year in question the review has been informed by: the work of the external auditor; the financial management and governance self assessment process; the work of the executive managers within the academy trust who have responsibility for the development and maintenance of the internal control framework. The Accounting Officer has been advised of the implications of the result of their review of the system of internal control by the Finance 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 Governing Body on. and signed on its behalf by: Anne Campbell Chair to Governors Andrew Hutchinson OBE Accounting Officer Page 15

18 STATEMENT ON REGULARITY, PROPRIETY AND COMPLIANCE As Accounting Officer of Parkside Federation Academies I have considered my responsibility to notify the Academy Trust board of trustees and the Education Funding Agency of material irregularity, impropriety and noncompliance with EFA terms and conditions of funding, under the funding agreement in place between the Academy Trust and the Secretary of State. As part of my consideration I have had due regard to the requirements of the Academies Financial Handbook (2013). I confirm that I and the Academy Trust board of trustees are able to identify any material, irregular or improper use of 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 (2013). 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.... Andrew Hutchinson OBE Accounting Officer Date:... Page 16

19 TRUSTEES' RESPONSIBILITIES STATEMENT The trustees (who act as governors of Parkside Federation Academies 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; 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 and signed on its behalf by:... Anne Campbell Chair of Governors Date: Page 17

20 INDEPENDENT AUDITOR'S REPORT TO THE BOARD OF TRUSTEES OF PARKSIDE FEDERATION ACADEMIES We have audited the financial statements of Parkside Federation Academies 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 2013 to issued by the Education Funding Agency. This report is made solely to the Academy's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act Our audit work has been undertaken so that we might state to the Academy's members those matters we are required to state to them in an 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 members, 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 charitable company'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 2013 to issued by the Education Funding Agency. Page 18

21 INDEPENDENT AUDITOR'S REPORT TO THE BOARD OF TRUSTEES OF PARKSIDE FEDERATION ACADEMIES OPINION ON OTHER MATTER PRESCRIBED BY THE COMPANIES ACT 2006 In our opinion the information given in the Trustees' Report, incorporating the Strategic Report, for the financial year for which the financial statements are prepared is consistent with the financial statements. MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or the financial statements are not in agreement with the accounting records and returns; or certain disclosures of trustees' remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit. Stuart Manning FCA (Senior Statutory Auditor) for and on behalf of MHA MacIntyre Hudson Chartered Accountants Statutory Auditors 8-12 Priestgate Peterborough PE1 1JA Date: Page 19

22 INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO PARKSIDE FEDERATION ACADEMIES AND THE EDUCATION FUNDING AGENCY In accordance with the terms of our engagement letter dated 05 August and further to the requirements of the Education Funding Agency (EFA) as included in the Academies Accounts Direction 2013 to, we have carried out an engagement to obtain limited assurance about whether the expenditure disbursed and income received by Parkside Federation Academies during the year 1 September 2013 to 31 August have been applied to the purposes identified by Parliament and the financial transactions conform to the authorities which govern them. This report is made solely to Parkside Federation Academies and EFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to Parkside Federation Academies and EFA those matters we are required to state in a report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Parkside Federation Academies and EFA, for our work, for this report, or for the conclusion we have formed. RESPECTIVE RESPONSIBILITIES OF 'S ACCOUNTING OFFICER AND THE REPORTING ACCOUNTANT The Accounting Officer is responsible, under the requirements of Parkside Federation Academies's funding agreement with the Secretary of State for Education dated 28 March 2011, and the Academies Financial Handbook extant from 1 September 2013, for ensuring that expenditure disbursed and income received is applied for the purposes intended by Parliament and the financial transactions conform to the authorities which govern them. Our responsibilities for this engagement are established in the United Kingdom by our profession's ethical guidance and are to obtain limited assurance and report in accordance with our engagement letter and the requirements of the Academies Accounts Direction 2013 to. We report to you whether anything has come to our attention in carrying out our work which suggests that in all material respects, expenditure disbursed and income received during the year 1 September 2013 to 31 August have not been applied to purposes intended by Parliament or that the financial transactions do not conform to the authorities which govern them. APPROACH We conducted our engagement in accordance with the Academies Accounts Direction 2013 to issued by EFA. We performed a limited assurance engagement as defined in our engagement letter. The objective of a limited assurance engagement is to perform such procedures as to obtain information and explanations in order to provide us with sufficient appropriate evidence to express a negative conclusion on regularity. A limited assurance engagement is more limited in scope than a reasonable assurance engagement and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in a reasonable assurance engagement. Accordingly, we do not express a positive opinion. Our engagement includes examination, on a test basis, of evidence relevant to the regularity and propriety of the academy trust's income and expenditure. Page 20

23 INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO PARKSIDE FEDERATION ACADEMIES AND THE EDUCATION FUNDING AGENCY (continued) The work undertaken to draw to our conclusion includes: reviewing the Minutes of the meetings of the Governing Body and other evidence made available to us, relevant to our consideration of regularity a review of the objectives and activities of the Academy, with reference to the income streams and other information available to us as auditors of the Academy testing of a sample of payroll payments to staff testing of a sample of payments to suppliers and other third parties testing of a sample of grants received and other income streams evaluating the internal control procedures and reporting lines, testing as appropriate and making appropriate enquiries of the Accounting Officer. CONCLUSION In the course of our work, nothing has come to our attention which suggests that in all material respects the expenditure disbursed and income received during the year 1 September 2013 to 31 August have not been applied to purposes intended by Parliament and the financial transactions do not conform to the authorities which govern them. Stuart Manning FCA Reporting Accountant MHA MacIntyre Hudson Chartered Accountants Statutory Auditors 8-12 Priestgate Peterborough PE1 1JA Date: Page 21

24 STATEMENT OF FINANCIAL ACTIVITIES (Incorporating Income and Expenditure Account and Statement of Total Recognised Gains and Losses) INCOMING RESOURCES Unrestricted Note Restricted Restricted fixed asset Total Total 2013 Incoming resources from generated : Voluntary income 2 167, , ,312 Activities for generating 3 507,475 7, , ,393 Investment income 4 1, ,347 - Incoming resources from charitable activities 5-8,288,162 1,835,518 10,123,680 10,114,963 TOTAL INCOMING RESOURCES 676,168 8,295,814 1,835,518 10,807,500 10,739,668 RESOURCES EXPENDED Costs of generating : Costs of generating voluntary income 6 329, , , ,085 Charitable activities 8 176,682 7,940, ,006 8,485,092 7,955,844 Governance costs 9-22,460-22,460 35,521 TOTAL RESOURCES EXPENDED 7 505,738 8,359, ,006 9,233,366 8,472,450 NET INCOMING / (OUTGOING) RESOURCES BEFORE TRANSFERS 170,430 (63,808) 1,467,512 1,574,134 2,267,218 Page 22

25 STATEMENT OF FINANCIAL ACTIVITIES (continued) Note Unrestricted Restricted Restricted fixed asset Total Total 2013 Actuarial gains and losses on defined benefit pension schemes - (342,000) - (342,000) 84,000 NET MOVEMENT IN FUNDS FOR THE YEAR 170,430 (405,808) 1,467,512 1,232,134 2,351,218 Total at 1 September ,305 (218,658) 10,340,055 10,357,702 8,006,484 TOTAL FUNDS AT 31 AUGUST 406,735 (624,466) 11,807,567 11,589,836 10,357,702 All of the Academy Trust's activities derive from continuing operations during the above two financial periods. A Statement of Total Recognised Gains and Losses is not required as all gains and losses are included in the Statement of Financial Activities. The notes on pages 26 to 48 form part of these financial statements. Page 23

26 REGISTERED NUMBER: BALANCE SHEET AS AT 31 AUGUST FIXED ASSETS 2013 Note Tangible assets 15 11,517,252 9,811,666 CURRENT ASSETS Debtors , ,149 Cash at bank and in hand 2,142,351 1,996,399 2,578,222 2,587,548 CREDITORS: amounts falling due within one year 17 (1,367,638) (1,329,512) NET CURRENT ASSETS 1,210,584 1,258,036 TOTAL ASSETS LESS CURRENT LIABILITIES 12,727,836 11,069,702 Defined benefit pension scheme liability 18 (1,138,000) (712,000) NET ASSETS INCLUDING PENSION SCHEME LIABILITY 11,589,836 10,357,702 FUNDS OF THE ACADEMY Restricted : Restricted , ,342 Restricted fixed asset 20 11,807,567 10,340,055 Restricted excluding pension liability 12,321,101 10,833,397 Pension reserve (1,138,000) (712,000) Total restricted 11,183,101 10,121,397 Unrestricted , ,305 TOTAL FUNDS 11,589,836 10,357,702 The financial statements were approved by the trustees, and authorised for issue, on and are signed on their behalf, by:... Anne Campbell Chair of Governors... Andrew Hutchinson OBE Accounting Officer The notes on pages 26 to 48 form part of these financial statements. Page 24