LINCOLN COLLEGE ACADEMY TRUST (previously The Newark Academy Trust)

Transcription

1 Registered number: (previously The Newark Academy Trust) TRUSTEES REPORT AND FINANCIAL STATEMENTS

2 CONTENTS Page Reference and administrative details of the academy, its trustees and advisers Trustees' report 2-10 Governance statement Statement on regularity, propriety and compliance 14 Trustees' responsibilities statement 15 Independent auditors report Independent reporting accountant's assurance report on regularity Statement of financial activities 20 Balance sheet 21 Cash flow statement 22 Notes to the financial statements 23-41

3 REFERENCE AND ADMINISTRATIVE DETAILS OF THE ACADEMY, ITS TRUSTEES AND ADVISERS Members Trustees Company registered number Principal and registered office Company secretary Senior leadership team Independent auditor Bankers Solicitors Lincoln College Corporation J Allen (resigned 31 July 2014) M Serna I Sackree (resigned 31 August 2014) G Lee (appointed 1 June 2014) G Headland (appointed 4 August 2014) J Allen (resigned 31 July 2014) J Barrie (appointed 17 September 2014) K Batty (resigned 16 December 2014) N Bilton (resigned 31 May 2014) P Doody (resigned 26 September 2014) J Glasson (resigned 31 May 2014) R Haftersley (resigned 31 May 2014) G Headland (appointed 4 August 2014) K Jasper (resigned 26 September 2014) G Lee (appointed 1 June 2014) A Muter (resigned 31 May 2014) J Pinchbeck (resigned 26 September 2014) R Repper (resigned 31 May 2014) J Richardson (resigned 31 May 2014) D Rollin (resigned 31 May 2014) E Rossall MBE M Serna V Simcock (appointed 1 June 2014, resigned 26 September 2014) Lincoln College Monks Road Lincoln Lincolnshire LN2 5HQ S Bolton K Jasper, Principal - The Newark Academy V Simcock, Principal - The Gainsborough Academy BDO LLP St Hugh's 23 Newport Lincoln LN1 3DN NatWest 225 High Street Lincoln LN2 1AZ Langleys Olympic House Doddington Road Lincoln LN6 3SE Page 1

4 TRUSTEES' REPORT The trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the audited financial statements of Lincoln College Academy Trust (the Trust) for the year ended 31 August The trustees confirm that the annual report and financial statements of the Trust comply with the current statutory requirements, the requirements of the Trust's governing document and the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" Issued in March The annual report serves the purposes of both a trustees' report and a directors' report under company law. The Trust operates two secondary academies, one in Nottinghamshire and one in Lincolnshire. Its academies have a combined pupil capacity of 2,400 and had a roll of 1,530 as at 31 August Structure, governance and management a. Constitution The academy trust is a company limited by guarantee and an exempt charity. The charitable company's memorandum and articles of association are the primary governing documents of the academy trust. The trustees of Lincoln College Academy Trust are also the directors of the charitable company for the purposes of company law. The charitable company is known as Lincoln College Academy Trust. The charitable company changed Its name on 1 June 2014 from The Newark Academy Trust and its Articles of Association. Details of the trustees who served during the year are included in the Reference and Administrative Details on page 1. b. 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. C. Method of recruitment and appointment or election of trustees The charitable trust changed its Articles of Association during the year to reflect a multi-academy trust. The members may now appoint up to 10 directors/trustees through such process as they may determine. The members have agreed that these appointments will be made through the Sponsor's Search Committee. The academy trust is required to have a minimum of three directors and is not subject to a maximum although the total number of directors including the Chief Executive Officer (If appointed) who are employees of the company shall not exceed one third of the total number of directors. There shall be a minimum of two parent directors unless there are Local Governing Bodies which include at least two Parent Members. The members have agreed that two parents shall be Parent Members of each academy local governing body within the academy trust. Parent members of Local Governing Bodies shall either be elected or appointed. The directors themselves may co-opt directors. The term of office for any director shall be four years save that this time limit shall not apply to the Chief Executive Officer. Subject to remaining eligible to be a particular type of director, any director may be reappointed or re-elected. d. Policies and procedures adopted for the induction and training of trustees All trustees are provided with access to policies, procedures, minutes, budgets, plans and other documents which they need to fulfil their role. Any induction required is tailored specifically to the needs of the individual but would include a tour of the academies, meeting with the Chair and Clerk and senior managers within the academies. All trustees are required to undertake an annual assessment of their skills and experience and this Is used to identify individual training needs and to support development. Page 2

5 TRUSTEES' REPORT (continued) e. Organisational structure The academy trust is sponsored by Lincoln College. The academy trust for the majority of the year was a single academy trust with one academy (The Newark Academy). On 1 June 2014, the trust became a multi-academy trust and The Gainsborough Academy (previously The Trent Valley Academy) joined the academy trust. The Principal of The Newark Academy under the single academy trust was Accounting Officer and In the absence of a Chief Executive Officer in place, remains as the Accounting Officer. As a single academy trust, a scheme of delegation set out the delegated authority given to the Finance Committee, the Audit Committee, the Principal and that which remained with the trustees. On becoming a multiacademy trust, the scheme of delegation was amended to give delegated control to the Local Governing Bodies of the two academies. There was also the formation of a Trust Finance Committee and a Trust Audit Committee. The trustees are responsible for setting strategy, general policy, adopting an annual plan and budget ensuring funding is spent in line with the funding agreement and working within any restrictions. Expenditure is monitored by reports to the Finance Committee and trustees. All limits on expenditure are set in the Financial Regulations. The senior leadership team for the year to 31 August 2014 at The Newark Academy comprised a Principal, the two Vice Principals and two Assistant Principals. The senior leadership team, which have been appointed during the year in order to take the Academy forward, manage the control of the Academy at an executive level implementing the policies laid down by the Local Governing Body and reporting back to them. Other senior officers in the school including Faculty and Support Staff leaders are responsible for the authorisation of spending within agreed budgets as overseen by the Principal and Chief Financial Officer. The senior leadership team for the three months to 31 August 2014 at The Gainsborough Academy comprised an Acting Principal a Vice Principal, an Associate Vice Principal and three Assistant Principals. The Senior leadership team, who have been appointed to take the Academy forward, manage the control of the Academy at an executive level, implementing the policies laid down by the Local Governing Body and reporting back to them. As at 1 June 2014, the Academy re-aligned strategic roles and appointed a senior leadership team comprising a Principal, two Vice principals and two Assistant Principals to take the academy forward from September Other leaders in the school, including Heads of department and Support staff leaders are responsible for the authorisation of spending within agreed budgets as overseen by the Principal and Chief Financial Officer. f. Connected organisations, including related party relationships Lincoln College is the Trusts' sole sponsor. Some trustees of the Trust are also Governors of Lincoln College. During the period, Lincoln College provided a range of strategic corporate resources, including Finance, Human Resources, Payroll and IT Consultancy at arms length and not for any profit. The value of these services was 125,000. g. Trustees' indemnities Qualifying third party indemnity provision has been obtained by the Trust for the benefit of the trustees. Page 3

6 TRUSTEES' REPORT (continued) Objectives and Activities a. Objects and aims The principal objects and activity of the charitable company is the advance, for the public benefit, of education in the United Kingdom, in particular but without prejudice to the generality of the foregoing by establishing, maintaining, carrying on, managing and developing two schools offering a broad and balanced curriculum; and to promote for the benefit of the Inhabitants of Newark and Gainsborough and the surrounding areas of each school, the provision of facilities for recreation or other leisure time occupation of individuals who have need of such facilities by reason of their youth, age, Infirmity or disablement, financial hardship or social and economic circumstances or for the public at large in the interests of social welfare and with the object of improving the condition of life of the said inhabitants. The Newark Academy The main objectives of The Newark Academy during the period ended 31 August 2014 are summarised below: To drive to continually bring out the best in everyone: to discover the best In everyone, to expect the best from everyone, and to support all to achieve their personal best. For all students to enjoy making exceptional progress in a caring, safe and inclusive environment where success for all is celebrated. To ensure every student is equipped with the values, skills and qualifications to make Informed, lifelong, moral and economic contributions to a modem, technology reliant local, national and global society. For everyone to regard The Newark Academy as being central to the community it serves, and that the views of all contribute to its continued improvement, development and success. For everyone to be proud to be associated with The Newark Academy and carry on sharing their lifelong love of learning from generation to generation. The Gainsborouoh Academy The main objectives of the Gainsborough Academy during the period ended 31 August 2014 are summarised below: To create a climate where all stakeholders are encouraged to achieve their full potential through development of an ethos of lifelong learning. For all students to make exceptional progress in a caring, safe environment where success for all is celebrated at all times. For all students to develop the skills they require to flourish in a twenty-first century environment with an informed awareness of global Issues and the capacity to make a powerful contribution to the moral and economic progress of the nation. For the academy to be at the heart of the local community and for it to become a resource to support the regeneration of the local economy and make a contribution to all aspects of community life, both economic, educational and social. For the Academy to be a centre for the development of outstanding learning and to be a key vehicle for developing learning for all members of the local community, and to be recognised as such. Page 4

7 b. Objectives, strategies and activities The Newark Academy TRUSTEES' REPORT (continued) We at the Newark Academy strive to be the very best we can be, at the heart of the community we serve. We will become renowned for delivering excellence and challenge for all, equipping every student with a wide range of qualifications and skills as well as the ability and agility to be successful in all areas of their lives. Achievement of Students - s Ensure that all students make at least expected progress in English and Maths. Vulnerable groups make better than expected progress. All students' aspirations and expectations are raised. High achievers make better than expected progress. Quality of Teaching s Improve quality of learning and teaching so majority of lessons are good or better. Relevant professional impacted learning in place. Core skills delivered effectively across the curriculum. Short, medium and long term planning meets the needs of all. Behaviour, Attendance and Safety of Students s Pastoral system meets the needs of all. Improve attendance and punctuality. Develop engagement and behaviour for learning. Develop student leadership and responsibilities across the school. Leadership and Management s Clarity in structure, right people in right roles. Appraisal structure fully in place for all. All leaders empowered, highly effective and accountable. Develop student leadership and responsibilities across the school. The Wider Community (Social, Moral, Spiritual, Cultural experience) s Students show pride In The Newark Academy. Students understand their future pathways. The ethos of the academy Is supported by students, staff, parents and providers; local business, local schools, HE. The Newark Academy becomes the first choice school for the area. Page 5

8 b. Objectives, strategies and activities (continued) The GaInsborouah Academy TRUSTEES' REPORT (continued) The main objectives of The Gainsborough Academy during the 3 month period ended 31 August 2014 are summarised below: To be the first choice secondary for local parents To have excellent and consistently improving results placing us amongst the best comprehensive schools To enable all students to achieve their very best and progress to succeed at Level 3 courses and then university and/or jobs with training To gain recognition for excellent curriculum provision To play a key role at the heart of the local community To ensure the Academy moves out of serious weakness Judgement from Ofsted May13 We will achieve this by focussing on the following priorities: Closing performance gaps, accelerating progress and raising standards of achievement Creating a climate for learning improving the quality of teaching and student behaviour, attendance and engagement Curriculum and extra-curricular development Career structure and development - for teachers, support staff and leaders Community partnership and engagement c. Public benefit The trustees have given careful consideration to the Charity Commission's general guidance on public benefit and have complied with the duty bestowed on them. Page 6

9 LINCOLN COLLEGE ACADEMY. TRUST TRUSTEES' REPORT (continued) Strategic report Achievements and performance a. Going concern After making appropriate enquiries, the board of trustees has a reasonable expectation that the academy trust has adequate resources to continue in operational existence for the foreseeable future. For this reason it continues to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found In the Statement of Accounting Policies. b. Key financial performance indicators Staff The Gainsborough Academy The Newark Academy Attendance (%) IS Teaching Support Quality The Gainsborough Academy The Newark Academy of Teaching (%) Outstanding n/a Good n/a Requires n/a 45 improvement Inadequate n/a Student The Gainsborouqh Academy The Newark Academy Attendance (%) K53 & K85 n/a n/a n/a Whole school Persistent The Gainsborough Academy The Newark Academy Absence (%) Whole school KS5 n/a n/a n/a Fixed term exclusions (total) The Gainsborough Academy The Newark Academy n/a Page 7

10 b. Key performance indicators (continued) TRUSTEES' REPORT (continued) Key Stage 4 Attainment The Gainsborouqh Academy The Newark Academy %5+ At-C inc English & Maths %5+ A*-C inc English & Maths (PP) %5+ At-C inc English & Maths (Non PP) %5+ A*-G inc English & Maths % C+ English % 3+ Levels of progress English % 4+ Levels of progress English % C+ Maths % 3+ Levels of progress Maths %4+ Levels of progress Maths Key Stage 5 Attainment (The Newa k Academy) % of Students achieving AAB+ in 3 Facilitating Subjects 6 0 % of Students achieving AAB+ in 2 Facilitating Subjects We 0 % of Students achieving 3 A Levels AtE (Including. equivalents) % of Students achieving 2 A Levels A*-E (including. equivalents) % of Students achieving 1 A Levels A"-E (including. equivalents) Year 13 APSPC (Academic) Year 13 APSPE (Academic) Year 13 APSPC (Vocational) nia 866 Year 13 APSPE (Vocational) n/a 238 Year 13 APSPC (Combined) Year 13 APSPE (Combined) c. Review of activities The Newark Academy OFSTED inspection May 2014 Overall 3, with 2 for Leadership and Management, the 6th form reported as good. Predicted rise in students numbers Into Year 7 up from 90 to 120 Intake. Granted a new building under Priority School Building Programme funding. Winner of Student Leadership Academy for England. Despite national changes to the reporting and structure of GCSEs the final results English GCSE were maintained and Mathematics improved by over 10 percentage points. 100% of students achieved passes, and 88% of students attained 5A* - C GCSEs or equivalence, improving by 6 percentage points. A level results have improved, achieving 100% pass rate with a 10 percent point increase in the higher grades A* - C, 5% Age- A. Page 8

11 c. Review of activities (continued) The Gainsborough Academy TRUSTEES REPORT (continued) On June 1st the Academy converted to The Gainsborough Academy sponsored by Lincoln College. The Academy was in an Ofsted Category "Serious Weaknesses" and thus received monitoring visits from Ofsted. Ofsted monitoring Inspection March "The quality of education is improving at a good rate. Good practice is being maintained and weak teaching and ineffective leadership are being addressed effectively. Students say that the academy is a different place since September They welcome the significant improvements to teaching and behaviour and say that the reputation of the academy is much better. Students think that the academy is moving In the right direction and report that the atmosphere within the academy has markedly improved. Consequently, they are happier and feel more safe and secure" Despite national changes to the reporting and structure of GCSEs, the GCSEs were maintained and In fact saw a small rise. 100% of students achieved passes, and 51% of students attained 5A* - C GCSEs. Financial review a. Financial and risk management objectives and policies The Trust has a risk register which highlights potential risks. Along with the risk being identified, controls are put in place to minimise the risk and any on-going treatment or action is identified. The risk plan is reviewed annually by trustees and monitored by the individual academy management teams. b. Principal risks and uncertainties The trustees have established a robust process for Identifying and managing risk through the remit of the Audit Committee and receive regular reports. Risk Registers are maintained detailing a wide range of potential risks to the Trust and the academies with additional control measures in place to manage those risks deemed to be of greater significance. All areas of risk are allocated a responsible nominee. The principal risks and uncertainties kept under review Include: Student achievement Student progress Student recruitment Safeguarding Health and Safety Financial performance C. Reserves policy The trustees undertake an annual review of reserves Including the nature of income and expenditure and the need to match income with commitments. The trustees have determined an appropriate level of reserves to cover capital expenditure and unexpected emergencies. The Trust's current level of free reserves is 1,680,292 (2013: 647,474). The trustees are aware of the academy trust's liability in relation to Local Government Pensions which showed a deficit of EZ 703,000 at 31 August 2014 (2013: 1,123,000). This Is being addressed by means of increased employer contributions. d. Principal funding Most of the Trust's income Is obtained from the EPA, the use of which is restricted to particular purposes. The income received from the EFA during the period ended 31 August 2014 and the associated expenditure are shown in the restricted funds in the Statement of Financial Activities. Page 9

12 TRUSTEES' REPORT (continued) e. Investments policy The Trust's investment policy is set out in its Financial Regulations and states that Investments must only be made in risk adverse ethical funds. There were no funds invested at 31 August Plans for the future a. Future developments The Trust's vision is to create, develop and sustain an educational framework that offers open access, excellent learning, development and enrichment opportunities for all, in a wide variety of settings underpinned by high quality teaching and community engagement that will equip young people with the knowledge, skills and attributes to allow them to positively contribute to their future environment both socially and economically. During the coming year the trustees will continue to oversee the delivery of continuous improvement in teaching and learning across both academies that will assure improved outcomes and results. This will Include the development and evaluation of new models and structures of provision which will facilitate differentiated and targeted delivery according to local need. The academies will continue to work at the heart of their communities with outreach and in-reach programmes that assure a value-added dimension demonstrating the unique cohesive power of a school. Investment In high quality delivery will continue in terms of ten staffing resources, with attention to the recruitment, retention and development activities as well as to the learning environment In Newark, the trustees are looking forward to the opening of the new school building in 2016 and will be closely monitoring the build programme throughout 2015, whilst encouraging the Principal and senior leadership team to continue to use this transitional period to engage in an innovative and imaginative way with the local businesses to underpin the co-creation of a unique, vibrant, community based learning and resource hub. In Gainsborough, the trustees welcome the opportunity to develop new models for the delivery of vocational skills based learning programmes In conjunction with a wide range of educational providers and the local business community as the Academy seeks to further differentiate provision according to the learners needs. Community and employer engagement programmes will continue apace. Funds held as custodian None. Disclosure of information to auditor Each of the persons who are trustees at the time when this Trustees' report is approved has confirmed that: so far as that trustee is aware, there is no relevant audit information of which the charitable company's auditor is unaware, and that trustee has taken all the steps that ought to have been taken as a trustee In order to be aware of any information needed by the charitable company's auditor in connection with preparing its report and to establish that the charitable company's auditor is aware of that information. This report, incorporating the strategic report, was approved by order of the board of trustees, in their capacity as company directors, on 22 December 2014 and signed on its behalf by: G Lee Chair of trustees Page 10

13 GOVERNANCE STATEMENT Scope of Responsibility As trustees, we acknowledge we have overall responsibility for ensuring that Lincoln College Academy Trust has an effective and appropriate system of control, financial and otherwise. However such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives, and can provide only reasonable and not absolute assurance against material misstatement or loss. The board of trustees has delegated the day-to-day responsibility to the Principal of The Newark Academy, 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 Lincoln College Academy Trust and the Secretary of State for Education. They are also responsible for reporting to the board of trustees any material weaknesses or breakdowns in internal control. Governance The information on governance Included here supplements that described in the trustees' report and in the trustees' responsibilities statement. The board of trustees has formally met 7 times during the year. Six of the meetings took place whilst a single academy trust with the final meeting of the year as a multi-academy trust. Attendance during the year at meetings of the board of trustees was as follows: Trustee Meetings attended Out of a possible J Allen 5 7 J Barrie 0 0 K Batty 7 7 N Bilton 5 6 P Doody 4 7 J Glasson 4 6 R Haftersley 4 6 G Headland 0 0 K Jasper 6 7 G Lee 1 1 A Muter 5 6 J Pinchbeck 4 7 R Repper 5 6 J Richardson 4 6 ID Rollin 3 6 E Rossall MBE 6 7 M Sema 6 7 V Simcock 1 1 The board of trustees as its meeting in March 2014 undertook a self-evaluation of its effectiveness as a board against twenty key questions a school governing body should ask itself as published by the All Party Parliamentary Group on Education Governance & Leadership and National Governors' Association. The board of trustees at a special meeting on 22 May 2014 agreed to seek approval from its members to change its Articles of Association to become a multi-academy trust and to change its name from The Newark Academy Trust. This approved change on 1 June 2014 led to the joining of the trust by The Gainsborough Academy (formerly The Trent Valley Academy). The membership of the board of trustees changed on this date with a small group of trustees continuing on the new board, whilst the others became members of the board of the local governing bodies for each academy within the trust. The trustees have delegated the running of the academy with monitoring and accountability for standards, admissions and exclusions to the local boards although they have not delegated any powers that they are not permitted to do so under the Articles of Association, Charity or Company Law. Page 11

14 GOVERNANCE STATEMENT (continued) The Finance Committee is a sub committee of the main board of trustees. Its purpose is to assist the decision making of the trustees, by enabling more detailed consideration to be given to the best means of fulfilling the trustees responsibility to ensure sound management of the Trust's finances and resources, including proper planning, monitoring and probity. To make appropriate comments and recommendations on such matters to the trustees on a regular basis. This sub committee met 3 times during the year to 31 August Attendance at meetings in the year was as follows: Trustee Meetings attended Out of a possible J Allen 1 3 P Doody 3 3 K Jasper 2 3 J Pinchbeck 2 3 J Richardson 2 3 E Roassall 2 3 M Serna 1 3 The Audit Committee Is a sub committee of the main board of trustees. its purpose is to ensure that robust internal control exists within the trust by providing the primary Interface between the trustees and the external auditors and Responsible Officer, The Committee works closely with the Trust's Finance Services Provider on the preparation and finalisation of the Trust's Annual Report and Financial Statements and makes recommendations to the trustees for the acceptance, or otherwise, of such draft Financial Statements. The Audit Committee met 3 times during the year to 31 August Attendance at meetings in the year was as follows: Trustee Meetings attended Out of a possible N Bilton 3 3 J Glasson 3 3 R Hattersley 2 3 A Muter 3 3 D Rollin 2 3 The Purpose of the System of Internal Control The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk of failure to achieve policies, aims and objectives; It can therefore only provide reasonable and not absolute assurance of effectiveness. The system of Internal control is based on an ongoing process designed to identify and prioritise the risks to the achievement of 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 Lincoln College Academy Trust for the year 1 September 2013 to 31 August 2014 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 Trust is exposed together with the operating, financial and compliance controls that have been implemented to mitigate those risks. The board of trustees is of the view that there is a formal ongoing process for identifying, evaluating and managing the Trust's significant risks, that has been in place for the year 1 September 2013 to 31 August 2014 and up to the date of approval of the annual report and financial statements. This process is regularly reviewed by the board of trustees. Page 12

15 The Risk and Control Framework GOVERNANCE STATEMENT (continued) The Trusts system of internal financial control Is based on a framework of regular management information and administrative procedures including the segregation of duties and a system of delegation and accountability. In particular, it Includes: comprehensive budgeting and monitoring systems with an annual budget and periodic financial reports which are reviewed and agreed by the board of trustees; regular reviews by the Finance 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. However, the trustees have appointed Duncan & Toplis, as Responsible Officer (SO). The RO's role Includes giving advice on financial matters and performing a range of checks on the Trust's financial systems. On a quarterly basis, the SO reports to the board of trustees on the operation of the systems of control and on the discharge of the board of trustees' financial responsibilities. The RO has delivered their schedule of work as planned with no material controls issues arising as a result of the work. Review of Effectiveness As Accounting Officer, the Principal of The Newark Academy 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 Responsible Officer; the work of the external auditor; the work of the executive managers within the 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 ensure continuous improvement of the system is in place. Approved by order of the members of the board of trustees on 22 December 2014 and signed on their behalf, by: G Lee Chair of Trustees r - K Jasper Accounting Officer Page 13

16 STATEMENT ON REGULARITY, PROPRIETY AND COMPLIANCE As Accounting Officer of Lincoln College Academy Trust I have considered my responsibility to notify the Trust board of trustees and the Education Funding Agency of material irregularity, impropriety and non-compliance with EFA terms and conditions of funding, under the funding agreement in place between the 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 Trust board of trustees are able to Identify any material, irregular or improper use of funds by the Trust, or material non-compliance with the terms and conditions of funding under the 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. K Jasper Accounting Officer Date: 22 December 2014 Page 14

17 TRUSTEES' RESPONSIBILITIES STATEMENT The trustees (who are also the directors of the Trust 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 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 Trust and of its incoming resources and application of resources, including its Income and expenditure, for that period. In preparing these financial statements the directors are required to: select suitable accounting policies and then apply them consistently; observe the methods and principles In the Chadties 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 Trust will continue in business. The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Trust's transactions and disclose with reasonable accuracy at any time the financial position of the Trust and enable them to ensure that the financial statements comply with the Companies Act 2006 and the Academies Accounts Direction They are also responsible for safeguarding the assets of the Trust 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 Trust 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 Trust'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 board of trustees and signed on its behalf by: G Lee, Trustee for and on behalf of the board of trustees Date: 22 December 2014 Page 15

18 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF LINCOLN COLLEGE ACADEMY TRUST We have audited the financial statements of Lincoln College Academy Trust for the year ended 31 August 2014 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 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 2014 Issued by the Education Funding Agency. This report is made solely to the Trust'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 2013 to Our audit work has been undertaken so that we might state to the Trust'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 Trust, the Trust's members as a body and the Trust's trustees as a body, for our audit work, for this report, or for the opinion we have formed. Respective responsibilities of trustees and auditor As explained more fully in the trustees' responsibilities statement, the trustees (who act as 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 Auditing Practices Board'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 Trust's affairs as at 31 August 2014 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 2014 Issued by the Education Funding Agency. Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the trustees' report, incorporating the strategic report, for the financial year for which the financial statements are prepared is consistent with the financial statements. Page 16

19 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF LINCOLN COLLEGE ACADEMY TRUST 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 Trust, 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; or certain disclosures of trustees remuneration specified by law are not made; or any information or explanation to which we are entitled has not been afforded to us goo Craig Burton (senior statutory auditor) for and on behalf of BDO LLP, Statutory auditor Lincoln United Kingdom 23 December 2014 Page 17

20 INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO LINCOLN COLLEGE ACADEMY TRUST AND THE EDUCATION FUNDING AGENCY In accordance with the terms of our engagement letter dated 25 November 2014 and further to the requirements of the Education Funding Agency (EFA) as included in the Academies Accounts Direction 2013, we have carried out an engagement to obtain limited assurance about whether the expenditure disbursed and income received by Lincoln College Academy Trust during the year 1 September 2013 to 31 August 2014 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 Lincoln College Academy Trust and the EFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to Lincoln College Academy Trust and 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 Lincoln College Academy Trust and the EFA, for our work, for this report, or for the conclusion we have formed. Respective responsibilities of Lincoln College Academy Trust's accounting officer and the reporting accountant The accounting officer Is responsible, under the requirements of Lincoln College Academy Trust's funding agreement with the Secretary of State for Education dated 1 November 2012, and the Academies Financial Handbook extant from 1 September 2012, 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 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 2014 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 issued by the 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 Trust'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 10 of the Academies Accounts Direction 2013 to Page 18

21 INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO LINCOLN COLLEGE ACADEMY TRUST AND THE EDUCATION FUNDING AGENCY (continued) Conclusion In the course of our work, nothing has come to our attention which suggests that in all material respects the expenditure disbursed and income received during the year 1 September 2013 to 31 August 2014 have not been applied to purposes Intended by Parliament and the financial transactions do not conform to the authorities which govern them. too Craig Burton BDO LLP Reporting Accountant Lincoln United Kingdom 23 December 2014 Page 19

22 STATEMENT OF FINANCIAL ACTIVITIES (incorporating income and expenditure account and statement of recognised gains and losses) INCOMING RESOURCES Note Unrestricted funds 2014 E Restricted funds 2014 E Restricted fixed asset funds 2014 E Total funds 2014 E Total funds 2013 Incoming resources from generated funds: Transfer of assets/(iiabilities) 2 1,186,715 (454,883) 21,384,287 22,116,119 7,269,793 Other voluntary income 2 25,282 59,979-85,261 87,143 Activities for generating funds 3 55,490 55,490 40,161 Investment income Incoming resources from charitable activities 5-6,630,963 6,630,963 4,743,507 TOTAL INCOMING RESOURCES 1,267,514 6,236,059 21,384,287 28,887,860 12,140,626 RESOURCES EXPENDED Costs of generating funds: Activities for generating funds 3 27,874-27,874 13,629 Charitable activities 15,531 6,341,472 2,069,619 8,426,622 5,826,417 Governance costs 6 _ 15,668 15,668 10,977 TOTAL RESOURCES EXPENDED 8 43,405 6,357,140 2,069,619 8,470, ,023 NET INCOMING RESOURCES I (RESOURCES EXPENDED) BEFORE TRANSFERS 1,224,109 (121,081) 19,314,668 20,417,696 6,289,603 Transfers between Funds 20 (191,291) 191,291 NET INCOME FOR THE YEAR 1,032,818 (121,081) 19,505,959 20,417,696 6,289,603 Actuarial gains and losses on defined benefit pension schemes (739,000) (739,000) (284,000) NET MOVEMENT IN FUNDS FOR THE YEAR 1,032,818 (860,081) 19,505,959 19,678,696 6,005,603 Total funds at 1 September ,474 (677,852) 6,035,981 6,005,603 TOTAL FUNDS AT 31 AUGUST ,680,292 (1,537,933) 25,541,940 25,684,299 6,005,603 All activities relate to continuing operations, The Statement of Financial Activities includes all gains and losses recognised In the year. The notes on pages 23 to 41 form part of these financial statements. Page 20

23 FIXED ASSETS REGISTERED NUMBER: BALANCE SHEET AS AT 31 AUGUST 2014 Note E E Tangible assets 15 25,541,940 6,035,981 CURRENT ASSETS Debtors 16 2,078, ,954 Cash at bank and in hand 1,981,019 1,466,931 4,059,291 1,776,885 CREDITORS: amounts falling due within one year 17 (970,324) (684,263) NET CURRENT ASSETS 3,088,967 1,092,622 TOTAL ASSETS LESS CURRENT LIABILITIES 28,630,907 7,128,603 CREDITORS: amounts falling due after more than one year 18 (20,000) PROVISIONS FOR LIABILITIES Other provisions 19 (223,608) NET ASSETS EXCLUDING PENSION SCHEME LIABILITIES 28,387,299 7,128,603 Defined benefit pension scheme liability 25 (2,703,000) (1,123,000) NET ASSETS INCLUDING PENSION SCHEME LIABILITIES 25,684,299 6,005,603 FUNDS OF THE TRUST Restricted funds; Restricted funds 20 1,165, ,148 Restricted fixed asset funds 20 25,541,940 6,035,981 Restricted funds excluding pension liability 26,707,007 6,481,129 Pension reserve (2,703,000) (1,123,000) Total restricted funds 24,004,007 5,358,129 Unrestricted funds 20 1,680, ,474 TOTAL FUNDS 25,684,299 6,005,603 The financial statements were approved by the trustees, and authorised for issue, on 22 December 2014 and are si ned on their behalf, by: G Lee Chair of Trustees K Jasper Trustee The notes on pages 23 to 41 form part of these financial statements. Page 21

24 CASH FLOW STATEMENT Note Net cash flow from operating activities ,352 70,890 Returns on investments and servicing of finance Capital expenditure and financial investment 23 (191,291) (25,429) INCREASE IN CASH IN THE YEAR 514,088 45,483 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS Increase In cash in the year 514,088 46,483 MOVEMENT IN NET FUNDS IN THE YEAR 514,088 45,483 Net funds at 1 September ,466,931 1,421,448 NET FUNDS AT 31 AUGUST ,981,019 1,466,931 The notes on pages 23 to 41 torn part of these financial statements. Page 22

25 NOTES TO THE FINANCIAL STATEMENTS 1. ACCOUNTING POLICIES 1.1 Basis of preparation of financial statements The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value. The financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP), 'Accounting and Reporting by Charities' published in March 2005, the Academies Accounts Direction 2013 issued by the EFA, applicable accounting standards and the Companies Act Fund accounting Unrestricted income funds represent those resources which may be used towards meeting any of the charitable objects of the Trust at the discretion of the trustees. Restricted fixed asset funds are resources which are to be applied to specific capital purposes imposed by the Department for Education where the asset acquired or created Is held for a specific purpose. Restricted general funds comprise all other restricted funds received and include grants from the Department for Education. Investment income, gains and losses are allocated to the appropriate fund. 1.3 Incoming resources All incoming resources are included in the statement of financial activities when the Trust has entitlement to the funds, certainty of receipt and the amount can be measured with sufficient reliability. Grants are Included in the statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the balance sheet. Where income is received in advance of entitlement of receipt, Its recognition is deferred and included in creditors as deferred Income. Where entitlement occurs before income Is received, the income is accrued. General Annual Grant is recognised in full in the year for which it is receivable and any unspent amount is reflected as a balance in the restricted general fund. Capital grants are recognised when receivable and are not deferred over the life of the asset on which they are expended. Unspent amounts of capital grant are reflected In the balance In the restricted fixed asset fund. Donations are recognised on a receivable basis where there Is certainty of receipt and the amount can be reliably measured. Other income, including the hire of facilities, is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service. Page 23