Adventure Learning Academy Trust (A Company Limited by Guarantee)

Transcription

1 (A Company Limited by Guarantee) Annual Report and Financial Statements Year Ended 31 st August 2015 Company Number:

2 Report and Financial Statements for the year ended 31 August 2015 Contents Page Reference and Administrative Details 3 Trustees Report 4 Governance Statement 13 Statement on Regularity, Propriety and Compliance 17 Statement of Trustees Responsibilities 18 Independent Auditor s Report on the Financial Statements 19 Independent Reporting Accountant s Report on Regularity 21 Statement of Financial Activities incorporating Income & Expenditure Account 23 Balance Sheet 25 Cash Flow Statement 26 Notes to the Financial Statements 27 2

3 Reference and Administration Details Members: Trustees: Principal and Registered Office: Helping Hand Trust Limited (Subscriber) Adventure Learning Schools (Subscriber) Mr A Elson Helping Hands Trust Limited Adventure Learning Schools Prof D Hopkins Mr J Smith (Resigned 31/5/2015) Mr A Elson Mr S Moore Mrs S Davey Miss A Sarginson Mrs K Kirkham Mr T Flanagan CMA House, Newham Road, Truro, Cornwall, TR1 2SU Company Registration Number: Independent Auditor: Bankers: BDO LLP, 3 Hardman Street, Manchester M3 3AT Lloyds Bank PLC, Boscawen St, Truro, TR1 2QT 3

4 Trustees Report for the year ended 31 August 2015 The trustees present their annual report together with the financial statements and auditor s report of the charitable company for the year ended 31 August The annual report serves the purposes of both a trustees report, and a directors report under company law. The trust operates four primary and one secondary academies in south west England. Its academies have a combined pupil capacity of 2,001 and had a roll of 1,407 in the school census on October Structure, Governance and Management Constitution ( the Trust ) is a company limited by guarantee and an exempt charity. The charitable company s memorandum and articles of association ( the Articles ) are the primary governing documents of the Multi-Academy Trust. The trustees of are also the directors of the charitable company for the purposes of company law. The charitable company is known as. Details of the trustees who served during the year are included in the Reference and Administrative Details on page 3. 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 In accordance with normal commercial practice, the Trust has purchased insurance to protect Trustees and officers from claims arising from negligent acts, errors or omissions occurring whilst on Trust business. Method of Recruitment and Appointment or Election of Trustees Trustees are appointed subject to the Articles and are subject to retirement after four years but are eligible for appointment at the meeting at which they retire, with exception of the Chief Operating Officer. Policies and Procedures Adopted for the Induction and Training of Trustees All trustees receive induction training and are supplied with copies of policies, procedures, minutes, budgets, plans and other documents required to undertake their role as trustee. 4

5 Trustees Report for the year ended 31 August 2015 Organisational Structure The is ultimately responsible to the Department for Education and must ensure that its academies act in accordance with the Master Funding Agreement, Supplemental Funding Agreement, Academies Financial Handbook and all other relevant legislation. In order to fulfil its responsibility the Board has established a central Audit Committee and Finance Committee to consider finance and other matters such as HR across all its academies. The has also established a Local Governing Body in each of its academies in accordance with Local Governing Body Terms of Reference. Connected Organisations including Related Party Relationships The is connected to another multi-academy trust, Bright Tribe Trust, via Helping Hands Trust Limited being a member of both charities. Both multi-academy trusts ensure value for money is achieved by working collaboratively together across all areas of operations. During the year, the trust has benefitted from the financial and resource support provided by Dr Michael Dwan, the principal benefactor of both Helping Hands Trust Limited and the chair of Adventure Learning Schools. Dr Dwan represents the founding sponsors of the trust and has, from the establishment of the trust, ensured that the development and operation phases are fully funded and that the trust is, when necessary, provided with service at cost or less, in full compliance with the Academies Financial Handbook. Dr Dwan has provided this financial support by way of a personally funded bursary to Helping Hands Trust Limited and by the provision of cost or less services from North Consulting Limited, Blue Support Services Limited and The Knowledge Network (UK) Limited which are owned or controlled by Dr Dwan. During the financial year the trust made cost or less purchases from the above named companies of 445k (2014: nil) which can be analysed as 360k (2014: nil) cost of staff TUPE d from the trust/other recharges and 85k (2014: nil) services provided to the trust. The costs attributed to TUPE and other associated recharges are not discretionary and are fixed by law. During the financial year, Helping Hands Trust made an in-kind donation of 116k (2014: nil) relating to the delivery of managed estate service for the trust estate at below cost. In addition, Dr Dwan has funded a number of activities and services at his personal cost to further enhance the financial position of the trust. These have ranged from non-chargeable staff resources to capital works. This figure is estimated to be approximately 250k and includes a shortfall of 45k which relates to a 492k contract which was subcontracted during the year to ESPM (UK) Limited, who then subcontracted 492k of this contract to North & Partners Technical Limited. The actual cost to deliver the contract was 537k, the shortfall being met by Dr Dwan. Since formation, Dr Dwan either directly or indirectly through Helping Hands Trust Limited has provided funding/inkind services totalling 411k to the trust. This means that Dr Dwan s connected organisations received 85k of service fees during the year, but Dr Dwan has made donations, directly or indirectly of 411k during the same period. 5

6 Trustees Report for the year ended 31 August 2015 Objectives and Activities Objects and Aims The charitable objects are: To advance education for the public benefit, in particular but without prejudice to the generality of the foregoing by acquiring, establishing, maintaining, carrying on, managing and developing schools offering a broad and balanced curriculum. To provide, or procure for the benefit of the inhabitants of the areas in which the academies are located, and surrounding areas, facilities for recreation or other leisure time occupation of individuals who have need of such facilities by reason of their youth, age, infirmity, disability, financial hardship or social and economic circumstances or for the public at large in the interests of social welfare to improve their quality of life. Objective, Strategies and Activities Our aim is for The to be a new breed of Academy Trust; a model that leads the way for successful, properly considered, expansion of academy multi-chain networks and which brings together expertise from the education field and the professionalism and influences of commercial partners. We bring a new energy and approach to providing the best education for all children Through proven practices, The transforms the learning of children, raises standards and provides the highest quality learning environments, enabling learnings and teaching staff to thrive and be the best. Our aim is to break down the barriers that limit educational progress. We do this through adopting personal learning pathway for every child one that takes account of individual needs, aspirations, and talents. The founding sponsors of The share the same vision for teaching and learning and school ethos; a vision focused on the individual learning needs of every child. The Adventure Learning Academy Trust has developed an approach to personal learning that enables each learner to reach the highest level of individual achievement through the acquisition of a range of learning skills and a customised curriculum. People children, staff, parents and carers are at the heart of Bright Tribe s vision The investment in teaching and learning, school leadership teams, continuing professional development and the adoption of personalised learning are core elements that make Adventure Learning academies successful and enable them to achieve world-class results. Schools joining our network will be prepared to do things differently Adventure Learning brings fresh ideas, creative ways of working and an ethos that embraces challenge and change. Our team combines leading educational provision with the best professional business management skills, enabling our schools to focus on what they do best delivering outstanding education. We want schools joining our academy network to be proud to be part of our growing community and, through wider collaboration and knowledge sharing, support each other to be outstanding. The standards we set are very high 6

7 Trustees Report for the year ended 31 August 2015 We aim to set the lead for others to follow; in curriculum, in teaching and learning; in staff development; in technology and environment; and in school leadership and performance. We will help schools get there; working with them to plan their improvement pathway and supporting them every step of the way. Public Benefit Through our community of academies, we aim to provide the best life opportunities for all learners, to raise the aspirations of all who encounter us, and to help to revolutionise the education landscape. Our schools will be leaders and partners in their local communities, contributing to social and economic prosperity and gifting extraordinary people to the world. Strategic Report Achievements and Performance To date the Trust has: Developed strong relationships and a positive profile within the Department for Education at all levels including with the Academies Board, school brokers and Regional School Commissioners, to ensure that the expertise and interests of are well known and that the Trust is well positioned to take over outstanding, good and poorly performing schools. Developed a growing brand presence and position within the primary and secondary schools market. Recruited three Primary Schools (Altarnun Primary School, Gulval School and Liskeard Primary School) and one Secondary School (Fowey River Academy) in Cornwall on 1 st June 2014 and a further Primary School (Tywardreath Primary School) on 1 st January The is working with schools in challenging communities and with inherited poor financial positions which require intense support and difficult decisions to be made. The Trust is committed to supporting all of its academies on their improvement journey. Going Concern After making appropriate enquiries, the board of trustees has a reasonable expectation that the company has adequate resources to continue its activities for the foreseeable future. For this reason it continues to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Statement of Accounting policies. Financial Review Most of the Academies income is obtained from the EFA in the form of recurrent grants, the use of which is restricted to particular purposes. The grants received from the EFA during the year ended 31 August 2015 and the associated expenditure are show as restricted funds in the statement of financial activities. 7

8 Trustees Report for the period ended 31 August 2014 As at 31 August 2015 the net book value of tangible fixed assets was 20,317k and an analysis of these fixed assets is shown in note 13 to the Financial Statements. The assets were used exclusively for providing education and associated support services to the pupils of Adventure Learning academies. The deficit in the Local Government Pension Scheme (LGPS) is recognised on the balance sheet in accordance with the provisions of FRS17. The deficit of 1,523k relates to the deficit acquired on the introduction of new academies to the trust. Financial and Risk Management Objectives and Policies As outlined in our risk management policy; risk management is a central part of our strategic management and culture. It is the process whereby the Trust methodically address the risks attached to its activities with the goal of achieving sustained benefit within each activity and across the portfolio of all activities. The trustees have implemented a risk management process to identify, evaluate and manage risks across the organisation through corporate, departmental and operational risk registers. Special focus is around operational areas (eg in relation to teaching, health and safety, bullying, vetting of new staff and visitors, supervision of school grounds and school trips) and also in relation to the control of finances. Where significant financial risk still remains the trustees have ensured that they have adequate insurance cover. As trustees, we acknowledge we have overall responsibility for ensuring that the Trust has an effective, sound and appropriate system of control, financial and otherwise. We are also responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Trust which enables us to ensure the financial statements comply with the Companies Act. We also acknowledge responsibility for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities while complying with relevant laws and regulations. Our system of internal financial control is based on a framework of regular management information and administrative procedures including the segregation of duties, monitoring of controls, training of staff and a system of delegation and accountability. 8

9 Trustees Report for the year ended 31 August 2015 The Academies buildings are leased from Local Authorities for a peppercorn rent. In accordance with SSAP 21, Accounting for Leases and Hire Purchase Contracts, the buildings on long (typically 125 year) leases from County Council and Local Authorities have been recognised as tangible fixed assets in the accounts and the value of the buildings treated as voluntary income in the accounts, in the year of transfer to the Adventure Learning Trust. In accordance with Charities Statement of Recommended Practice, Account and Reporting by Charities (SORP 2005), such gifts 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 2015, total expenditure of 8,580k was funded by recurrent grant funding from the EFA together with other incoming resources. Excluding fixed assets and pension funds, there was an in-year surplus of 125k. As at 31 August 2015 the Restricted and Unrestricted general fund balances were a surplus of nil and surplus of 92k respectively. The purpose of the Trust s Finance Regulations manual is to: provide instruction and guidance to chairs of local governing bodies, academy principals and heads, academy finance officers and our central support staff; and ensure that each academy within the Trust and its subsidiaries ( the Group ) maintains and develops systems of financial control which conform to the requirements both of propriety and of good financial management. In addition, the trustees have considered the guidance for directors of public listed companies contained within the Turnbull Report. They believe that although it is not mandatory for the Trust it should, as a publicly funded body, adopt these guidelines as best practice. Principal Risks and Uncertainties The principal risks have been identified as; Reputational the continued success of attracting sufficient numbers of students to the academies by maintaining and improving educational standards and maintaining the Adventure Learning moral purpose and offering. Government Funding/Financial the trust has considerable reliance on the continued government funding through the EFA and there is no assurance that government policy or practise will remain the same and funding will remain at the same levels or on the same basis. Staffing the ability to retain, recruit and train quality staff and managers. Safeguarding and Child Protection our moral purpose is to seek to secure a place in a good school as a fundamental entitlement for every child and ensure the highest standards of selection and monitoring of staff, the operation of child protection policies, health and safety and discipline. Governance and Management the risk is the failure to effectively manage the academies finances, controls and education and operational performance. 9

10 Trustees Report for the year ended 31 August 2015 Maintaining adequate funding of pension liabilities the financial statements report the increase in pension scheme deficit under the requirements of FRS17. This may fluctuate over time based on economic and Local Authority investment policy. This is a long-term liability where it is hoped that it will reduce in future by employer contributions and additional lump sum payments. Reserves Policy The Trustees review the reserve levels of each Academy annually. This review encompasses the nature of income and expenditure streams, the need to match income with commitments and the nature of reserves. Investment Policy The aims to manage its cash balances to provide for the day-to-day working capital requirements of its operations, whilst protecting the real long-term value of any surplus cash balances against inflation. In addition the trust aims to invest surplus cash funds to optimise returns, but ensuring the investment instruments are such that there is no risk to the loss of these cash funds. Surplus funds identified from time to time above a protected base level for working capital can be invested with or via the following instruments; Interest bearing Bank Deposit accounts Bonds Treasury Bills Money Market Funds via Financial Conduct Authority (FCA) banks It is the intention of the Adventure Learning Trust to make investments in ways that are consistent with the values of the Adventure Learning Trust as expressed in the mission statement and ethos. Plans for Future Periods At the heart of the Adventure Learning model of schooling are the values, entitlements and guarantees that are described below. It is these principles and standards that give Adventure Learning schools their distinctive ethos and that are reflected in the key components of the whole-school design. These six elements are the essential features of an outstanding school and each is underpinned by a set of proven practices that are consistently adopted across the Adventure Learning academy chain. They are: 10

11 Trustees Report for the year ended 31 August 2015 Leadership Adventure Learning schools are driven by a moral purpose ensuring that all learners reach their potential both academically and socially within a humanising school ethos. Such leadership has a total and persistent focus on high quality teaching and learning, a rigorous, coherent and enquiry-led curriculum coupled with developmental performance management. Leadership is shared within and across schools through the use of school improvement teams. Personalised learning Adventure Learning schools personalise the learning experiences of all students. This includes the creation of personalised learning pathways, the active use of personal tutoring and the acquisition of a range of learning skills. There is a commitment to assessment for learning and the provision of personalised support which embrace the voice of the learner. These strategies are designed to ensure that Adventure Learning pupils have high quality learning experiences, make excellent progress and are motivated to achieve the highest standards. Curriculum frameworks Adventure Learning schools have an unrelenting focus on literacy and numeracy within a wide-ranging curriculum entitlement. This includes the active use of learning platforms and new technologies, the creation of personalised curriculum pathways and the facilitation of cross-curricular learning expeditions. These frameworks are designed to ensure rigour which enable learners to acquire the appropriate skills and qualifications that lead to employment, further education and higher education opportunities. High quality teaching In Adventure Learning schools, high quality teaching is ensured by a common framework for teaching and learning being adopted across all schools, with professional development being influenced by instructional rounds that result in a deeper understanding of the link between teaching and learning. This is driven by evidence-based strategies for improved learning and teaching as well as the development of best practice through collaborative working across. Partnerships Adventure Learning schools promote partnerships which increase capacity and improve outcomes for learners, schools and families through strong parental involvement, active community and employer connectivity, and excellent student progression 3 19 and beyond. In designing and developing partnerships to support this progress there is a strong emphasis on understanding community needs and the effective facilitation of collaborative working at all levels. 11

12 Trustees Report for the year ended 31 August 2015 Accountability Accountability for the highest of standards is part of the Adventure Learning DNA. In this regard, there is an expectation that Adventure Learning schools will share a commitment to meeting the most demanding of external accountability measures. Of equal importance is the need to rigorously address internal accountability measures through the adoption of effective practices in assessment and data management. In Adventure Learning schools, this includes developing robust systems and processes to embed effective practices in school self-evaluation and tracking students progress on a regular six-weekly basis. Our Goals The Adventure Learning whole-school design aims to deliver the following outcomes for all children by providing a vibrant and enriching educational experience: Support all children at primary stage, regardless of initial entry levels, to achieve at least national expectations. Ensure all primary schools exceed floor targets and are secure above national standard. Support all secondary students to achieve above national average qualifications in at least five GCSEs, the English Baccalaureate and/or equivalent industry recognised, vocational qualifications. Provide a breadth of curriculum pathways 14 19, including A Levels, AS Levels and vocational offers. Support all of our academies to achieve an Ofsted rating of outstanding within a rigorous improvement plan. Auditor Insofar as the trustees are aware: there is no relevant audit information of which the charitable company s auditor is unaware; and the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. Trustees report, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on and signed on the board s behalf by: Miss A Sarginson Trustee 12

13 Governance Statement Scope of Responsibility As trustees we acknowledge we have overall responsibility for ensuring that the 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 Chief Operating Officer, 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 the and the Secretary of State for Education. They are also responsible for reporting to the board of trustees any material weaknesses or breakdowns in internal control. Governance The information on governance included here supplements that described in the Trustees Report and in the Statement of Trustees Responsibilities. The board of trustees has formally met 3 times during the period. Attendance during the year at meetings of the board of trustees was as follows: Trustee Meetings attended Out of a possible Prof D Hopkins 2 3 Mr J Smith 3 3 Mr A Elson 3 3 Miss A Sarginson 2 3 Mr T Flanagan 2 3 Mr S Moore 2 3 Mrs S Davey 2 3 Helping Hands Trust (represented by Dr M Dwan) 3 3 The board has faced the following challenges during the year; Raising levels of progress and achievement quickly from very low starting points within our academies. Ensuring financial stability within our academies. 13

14 Governance Statement The Executive Committee is a sub-committee of the main board of trustees and is fully authorised to make decisions on any matters arising between scheduled meetings of the directors which require urgent attention. Attendance at meetings during the year was as follows: Meetings attended Out of a possible Mrs K Kirkham 3 3 Mr A Elson 3 3 Helping Hands Trust (represented by Dr M Dwan) 3 3 The Finance Committee is a sub-committee of the main board of trustees and its purpose is to: regularly monitor actual expenditure and income against budget; ensure the annual accounts are produced in accordance with the requirements of the Companies Act 2006, Charities Act 2011 and the Statement of Recommended Practice: Accounting and Reporting by Charities 2005 and the EFA guidance issued to academies; reviewing and authorising the award of an individual contract or purchase made by any individual Academies. Attendance at meetings during the year was as follows: Meetings attended Out of a possible Mrs K Kirkham 9 9 Mr J Smith 6 6 Mr D Watson 9 9 Miss A Sarginson 4 5 Helping Hands Trust (represented by Dr M Dwan) 9 9 The Audit Committee is a sub-committee of the main board of trustees and its purpose is to monitor the integrity of the financial statements of the Trust, including its annual and interim reports. Attendance at meetings during the year was as follows: Meetings attended Out of a possible Mrs K Kirkham 2 2 Miss A Sarginson 2 2 Helping Hands Trust (represented by Dr M Dwan)

15 Governance Statement Review of Value for Money As accounting officer the chief operating officer 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: Improving educational outcomes of its students whilst operating within the financial constraints of the budget. Increasing collaboration between its academies, both educationally and financially, generating savings by negotiating trust wide contracts. Securing additional third party income and grants for its academies and receiving a sponsor donation of 116k for in-kind services. During the financial year, the trust has benefited from at cost and in most cases substantially below cost services from Blue Support Limited, The Knowledge Network (UK) Limited and North Consulting Limited who are linked to the trust by way of a common sponsor or founder. 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 the trusts 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 for the year ended 31 August 2015 and up to the date of approval of the annual report and financial statements. Capacity to Handle Risk The board of trustees has reviewed the key risks to which the Academy Trust is exposed together with the operating, financial and compliance controls that have been implemented to mitigate those risks. The board of trustees is of the view that there is a formal on-going process for identifying, evaluating and managing the Academy Trust s significant risks that has been in place for the year ended 31 August 2015 and up to the date of approval of the annual report and financial statements. The Risk and Control Framework 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; 15

16 Governance Statement regular reviews by the finance committee of reports which indicate financial performance against the forecasts and of major purchase plans, capital works and expenditure programmes; setting targets to measure financial and other performance; clearly defined purchasing (asset purchase or capital investment) guidelines; delegation of authority and segregation of duties; identification and management of risks. The board of trustees has considered the need for a specific internal audit function and has decided not to appoint an internal auditor for the year ended 31 August 2015 and appointed Joe Smith to perform peer review. The reviewer s role includes giving advice on financial matters and performing a range of checks on the Academy Trust s financial systems. On a quarterly basis, Joe Smith the reviewer reports to the board of trustees, through the audit committee on the operation of the systems of control and on the discharge of the board of trustees financial responsibilities. The board of trustees has appointed an internal auditor for the year ended 31 August Review of Effectiveness As accounting officer the Chief Operating Officer has responsibility for reviewing the effectiveness of the system of internal control. During the period in question the review has been informed by: the work of the peer reviewer; 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 audit committee and a plan to address weaknesses and ensure continuous improvement of the system is in place. Approved by order of the members of the board of trustees on and signed on its behalf by: Miss A Sarginson Trustee Mrs K Kirkham Accounting Officer 16

17 Statement on Regularity, Propriety and Compliance As accounting officer of the 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. I confirm that I and the Academy Trust board of trustees are able to identify any material irregular or improper use of funds by the Academy Trust, or material non-compliance with the terms and conditions of funding under the Academy Trust s funding agreement and the Academies Financial Handbook. I confirm that no instances of material irregularity, impropriety or funding non-compliance have been discovered to date. Mrs K Kirkham Accounting Officer 17

18 Statement of Trustees Responsibilities for the year ended 31 August 2015 The trustees (who act as governors of the and are also the directors of the charitable company for the purposes of company law) are responsible for preparing the Trustees Report and the financial statements in accordance with the Annual Accounts Direction issued by the Education Funding Agency, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations. Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees most 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 in 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 trustee 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 the 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 on its behalf by: and signed Miss A Sarginson Trustees 18

19 Independent Auditor s report on the financial statements to the Board of Trustees of We have audited the financial statements of ( the Academy ) for the year ended 31 August 2015 which comprise the statement of financial activities, incorporating the income and expenditure account and statement of total recognised gains and losses, the balance sheet, the cashflow statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and the Academies Accounts Direction 2014 to 2015 (SORP 2005) issued by the Education Funding Agency ( the EFA ). 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 2006 and to the trustees, as a body, in accordance with the Academies Accounts Direction 2014 to 2015 (SORP 2005). Our audit work has been undertaken so that we might state to the Academy's members and 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, the Academy's members as a body and the Academy s trustees as a body for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of trustees and auditor As explained more fully in the trustees responsibilities statement, the trustees (who act as governors of Adventure Learning Academy Trust and are also the directors of the charitable company 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. We have been appointed as auditor under the Companies Act 2006 and report in accordance with that Act. 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 Financial Reporting Council s (FRC s) Ethical Standards for Auditors. Scope of the audit of the financial statements A description of the scope of an audit of financial statements is provided on the Financial Reporting Council s website at 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 2015 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 2015 (SORP 2005) issued by the EFA. 19

20 Independent Auditor s report on the financial statements to the Board of Trustees of Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the trustees annual report, which includes the strategic report, for the financial period 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 and proper accounting records have not been kept in respect of the Academy, or returns adequate for our audit have not been received from branches not visited by us; or the financial statements do not accord with the accounting records and returns; or certain disclosures of governor's remuneration specified by law are not made; or we have not received all the information and explanations we require for audit. Mark Sykes (senior statutory auditor) For and on behalf of BDO LLP, statutory auditor Manchester United Kingdom Date BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127) 20

21 Independent Reporting Accountant s Assurance Report on Regularity to and the Education Funding Agency In accordance with the terms of our engagement letter dated 6 November 2015 and further to the requirements of the Education Funding Agency (EFA) as included in the Academies Accounts Direction 2014 to 2015 (SORP 2005), we have carried out an engagement to obtain limited assurance about whether the expenditure disbursed and income received by during the year ended 31 August 2015 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 and to the EFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to and to the 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 Adventure Learning Academy Trust and to the 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 s funding agreement with the Secretary of State for Education dated 29 May 2014 and the Academies Financial Handbook, extant from 1 September 2014, for ensuring that expenditure disbursed and income received is applied for the purposes intended by Parliament and the financial transactions conform to the authorities which govern them. Our responsibilities for this engagement are established in the United Kingdom by our profession s ethical guidance and are to obtain limited assurance and report in accordance with our engagement letter and the requirements of the Academies Accounts Direction 2014 to 2015 (SORP 2005). 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 to 31 August 2015 have not been applied to purposes intended by Parliament or that the financial transactions do not conform to the authorities which govern them. Approach We conducted our engagement in accordance with the Academies Accounts Direction 2014 to 2015 (SORP 2005) issued by the EFA. We performed a limited assurance engagement as defined in out engagement letter. The objective of a limited assurance engagement is to perform such procedures as to obtain information and explanations in order to provide us with sufficient appropriate evidence to express a negative conclusion on regularity. A limited assurance engagement is more limited in scope than a reasonable assurance engagement and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in a reasonable assurance engagement. Accordingly, we do not express a positive opinion. Our engagement includes examination, on a test basis, of evidence relevant to the regularity and propriety of the Academy s income and expenditure. The work undertaken to draw our conclusion includes an assessment of the level of risk associated with the specific categories of income and expenditure and the potential for irregularities to be identified. Our work is performed in accordance with Part 9 of the Academies Accounts Direction 2014 to 2015 (SORP 2005). 21

22 Independent Reporting Accountant s Assurance Report on Regularity to and the Education Funding Agency (continued) Conclusion In the course of our work, nothing has come to our attention which suggests that in all material respects the expenditure disbursed and income received during the year to 31 August 2015 has not been applied to purposes intended by Parliament and the financial transactions do not conform to the authorities which govern them. BDO LLP Reporting Accountant Manchester United Kingdom Date BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127) 22

23 Statement of financial activities for the year ended 31 August 2015 Incoming Resources Incoming resources from generated funds: Transfers from Local Authorities on conversion Unrestricted funds Restricted General Funds Restricted Fixed Asset Funds Total 2015 Total 2014 Total 201 Note (205) 2,773 2,880 16,575 Voluntary income Activities for generating funds [XXX Investment income [XXX Incoming resources from charitable activities: Funding for the academy trust s educational operations 5-7,089 1,097 8,186 2,040 [XXX Total income resources 866 7,000 3,870 11,736 18,721 [XXX Resources expended Charitable activities: Academy trust educational 7-8, ,948 2,292 [XXX operations Governance costs [XXX Total resources expended 6-8, ,992 2,317 [XXX Net incoming/(outgoing) resources before transfers 866 (1,478) 3,356 2,744 16,404 Gross transfers between funds 18 (1,151) 1, [XXX Net income/(expenditure) for the year Other recognised gains and losses Actuarial (losses) gains on defined benefit pension schemes (285) (341) 3,370 2,744 16,404 [XXX 18, 27 - (262) - (262) - [XXX Net movement in funds (285) (603) 3,370 2,482 16,404 [XXX 23

24 Statement of financial activities for the year 31 August 2015 (continued) Unrestricted funds Restricted General Funds Restricted Fixed Asset Funds Total 2015 Total 2014 Total 201 Note Reconciliation of funds Net movement in funds brought forward Total funds brought forward at 1 September 2014 (285) (603) 3,370 2,482 16, (920) 16,947 16,404 - [XXX Total funds carried forward at 31 August (1,523) 20,317 18,886 16,404 [XXX All of the academy trust s activities derive from continuing operations during the above two financial periods. 24

25 Balance Sheet at 31 August 2015 Company Number: Note Fixed assets Tangible assets 13 20,317 16,947 Investments ,317 16,947 Current assets Stocks [XXX Debtors [XXX Cash at bank and in hand [XXX [XXX Liabilities Creditors: amounts falling due within one year 17 (831) (625) [XXX Net current assets Total assets less current liabilities 20,409 17,164 Pension scheme liability 27 (1,523) (760) Net assets including pension liability 18,886 16,404 Funds of the academy trust Restricted funds Fixed asset fund 18 20,317 16,947 [XXX General fund 18 - (160) [XXX Pension reserve 18 (1,523) (760) [XXX Total restricted funds 18,794 16,027 Unrestricted funds Total funds 18,886 16,404 The financial statements on pages 23 to 49 were approved by the trustees, and authorised for issue on and are signed on their behalf by: Miss A Sarginson Trustee 25

26 Cash flow statement for the period ended 31 August 2015 Note Net cash inflow from operating activities 21 (255) (95) [X Returns on investments and servicing of finance [X Capital expenditure and financial investment 23 (14) - [X Cash on conversion (Decrease)/increase in cash in the period [X Reconciliation of net cash flow to movement in net funds Net funds at 1 September [X Net funds at 31 August [X 26

27 Notes forming part of the financial statements for the year ended 31 August Accounting Policies Basis of Preparation The financial statements have been prepared under the historical cost convention in accordance with applicable United Kingdom Accounting Standards, the Charity Commission 'Statement of Recommended Practice: Accounting and Reporting by Charities' ('SORP 2005'), the Academies Accounts Direction 2014 to 2015 issued by the EFA and the Companies Act A summary of the principal accounting policies, which have been applied consistently, except where noted, is set out below. Group accounts have not been prepared as all of the company s subsidiaries are permitted to be excluded from group accounts by virtue of sections 402 and 405 of the Companies Act These financial statements therefore present information about the company as an individual undertaking and not about its group. Conversion to an Academy Trust The conversions from state maintained schools to an academy trust involved transfers of identifiable assets and liabilities and the operation of schools for nil consideration and has been accounted for under the acquisition accounting method. The assets and liabilities transferred on conversion from each school to the academy trust have been valued at their fair value being a reasonable estimate of the current market value that the trustees would expect to pay in an open market for an equivalent item. Their fair value is in accordance with the accounting policies set out for. The amounts have been recognised under the appropriate balance sheet categories, with a corresponding amount recognised in voluntary income as net income in the Statement of Financial Activities and analysed under unrestricted funds, restricted general funds and restricted fixed asset funds. Further details of the transactions are set out in note 28. Going Concern The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the company to continue as a going concern. The trustees make this assessment in respect of a period of one year from the date of approval of the financial statements and are satisfied that the use of a going concern is appropriate for the Adventure Learning Academy Trust. The Trustees, via the trust s board, gain assurance of future plans following review and approval of medium and long term corporate plans, budgets and discussions. Incoming Resources All incoming resources are recognised when the Academy Trust has entitlement to the funds, certainty of receipt and the amount can be measured with sufficient reliability. Grants Receivable Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the balance sheet. 27