DOROTHY GOODMAN SCHOOL

Transcription

1 Registered number: ANNUAL REPORT AND FINANCIAL STATEMENTS

2 CONTENTS Page Reference and Administrative Details of the Academy, its Trustees and Advisers 1-2 Trustees' Report 3-9 Governance Statement Statement on Regularity, Propriety and Compliance 13 Trustees' Responsibilities Statement 14 Independent Auditor's Report to the Board of Trustees of Dorothy Goodman School Independent Reporting Accountant's Assurance Report on Regularity to Dorothy Goodman School and the Education Funding Agency Statement of Financial Activities incorporating Income and Expenditure Account Balance Sheet 21 Cash Flow Statement 22 Notes to the Financial Statements, incorporating Statenebt of Accounting Policies and other notes to the Financial Statements

3 REFERENCE AND ADMINISTRATIVE DETAILS OF THE ACADEMY, ITS TRUSTEES AND ADVISERS Members Jeffrey Bowes Jonathon Lees Andrew Childerhouse T rustees Janet Thompson, Headteacher and Accounting Officer12 34 Jeffrey Bowes, Chair of Trustees and Chair of Finance (from 1 January 2014) 124 Andrew Childerhouse, Chair of Finance (resigned 31 December 2013) 1 Pamela Harbot 23 Stephen Fray, Staff Trustee (resigned 31 August 2014) 2 Philip Stock 3 Brian Cartwright 13 Jonathon Lees, Vice Chair 14 Chloe Sanders, Staff Trustee (resigned 31 March 2014) 2 > 3 Georgina Harrison, Staff Trustee (resigned 31 December 2013) 3 Sharron Richards (appointed 1 January 2014) 2 ' 3 4 Caroline Henton (appointed 1 January 2014) 1 James Lison (appointed 1 March 2014) 2 Caroline Adlam, Staff Trustee (appointed 1 March 2014) 3 Lynn Pallett (appointed 1 July 2014) 2 1 Finance, audit and staffing committee 2 Teaching and learning committee 3 Health and safety and safeguarding committee 4 Performance management committee Company registration number Principal and registered office Stoke Road Hinckley Leicestershire LE10 0EA Company secretary Caroline Adlam Chief executive officer Janet Thompson Senior management team Janet Thompson, Headteacher Kelly Dryden, Deputy Headteacher (appointed 26 August 2014) Claire Moore, Deputy Headteacher (appointed 26 August 2014) Stephen Fray, Assistant Headteacher (Lower School) (resigned 31 August 2014) Page 1

4 REFERENCE AND ADMINISTRATIVE DETAILS OF THE ACADEMY, ITS TRUSTEES AND ADVISERS Administrative details (continued) Cecilia Mitchell, Assistant Headteacher (Upper School) (resigned 31 August 2014) Julie Rawlings, Assistant Headteacher Kate Wood, Assistant Headteacher Caroline Adlam, Finance Manager Nicola Brown, Business Manager (apppointed 17 February 2014) Independent auditor MHA Maclntyre Hudson Chartered Accountants 11 Merus Court Meridian Business Park Leicester LE191RJ Page 2

5 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 Dorothy Goodman School (the Academy) for the year ended 31 August The Trustees confirm that the Annual Report and financial statements of the Academy comply with the current statutory requirements, the requirements of the Academy's governing document and the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" issued in March The Trustees present their annual report together with the financial statements and auditor's reports thereon of the charitable company for the year ended to 31 August The annual report serves the purposes of both a Trustees' Report, and a Directors' Report under company law. The Trust operates an Academy for pupils with learning difficulties aged 3 to 19. Admission to Dorothy Goodman School (Special Academy) will normally be by way of a statement of special educational needs or from September 2014 by way of an Education Health and Care Plan. Parents may make representations for a placement at Dorothy Goodman School. The local authority responsible for making the statement or Education Health and Care Plan retains responsibility for deciding whether to name Dorothy Goodman School (Special Academy) in the statement or Education Health and Care Plan, based on the individual needs of the child and any representations made by parents. A local authority is required to consult with Dorothy Goodman School (Special Academy) before naming it in a child's statement or Education Health and Care Plan. Once Dorothy Goodman School (Special Academy) is named in a child's statement or Education Health and Care plan, the Academy is under a legal duty to admit the child. The Academy receives funding for 241 pupils and had a roll of 237 in the school census on 2 October The number on roll has increased to 240 as of 17 November STRUCTURE, GOVERNANCE AND MANAGEMENT CONSTITUTION Dorothy Goodman School 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. The Governors act as the Trustees for the charitable activities of Dorothy Goodman School and are also the directors of the charitable company for the purposes of company law. The charitable company is known as Dorothy Goodman School. Details of the Trustees who served throughout the year except as noted are included in the Reference and Administrative Details on page 1. MEMBERS' LIABILITY Each member of the charitable company undertakes to contribute to the assets of the charitable company in the event of it being wound up while they are a member, or within one year after they cease to be a member, such amount as may be required, not exceeding 10, for the debts and liabilities contracted before they ceased to be a member. TRUSTEES' INDEMNITIES In accordance with normal commercial practice the Academy has purchased insurance to protect Trustees and officers from claims arising from negligent acts, errors or omissions occurring whilst on academy business. The insurance provides cover up to 3,000,000 on any one claim and the cost for the year ended 31 August 2014 was 1,243 (2013-1,380). Page 3

6 TRUSTEES' REPORT (continued) METHOD OF RECRUITMENT AND APPOINTMENT OR ELECTION OF TRUSTEES Recruitment of Trustees is outlined in the Articles of Association. There are no persons or bodies not mentioned in the articles entitled to appoint Trustees. Members may appoint up to 2 Trustees. Trustees may co-opt up to 4 Trustees. All Trustees are asked to seek suitable persons and make appropriate nominations. The Chair of Trustees and Headteacher meet and interview prospective nominees before bringing a nomination to Trustees. The appointment of Staff Trustees is via a process of a staff ballot. Appointment of Parent Trustees is made via parent ballot. POLICIES AND PROCEDURES ADOPTED FOR THE INDUCTION AND TRAINING OF TRUSTEES The training and induction provided for new Trustees will depend on their existing experience. Where necessary, induction will provide training on charity and educational, legal and financial matters. Trustee induction training, alongside a menu of extensive specialised training, is available through the local network of schools to support all new Trustees. The Academy buys into the LA Governor Development Service who, across the Governing Body, offers further Trustees training. All Trustees are provided with copies of policies, procedures, minutes, accounts, budgets, plans and other documents that they will need to undertake their role. ORGANISATIONAL STRUCTURE The Board of Members meet at least annually to appoint new member Trustees and to receive the annual accounts. The Full Governing Body meet at least 3 times per year and at each meeting they receive the minutes and reports of the 3 sub committees:- 1. Finance and Staffing - which meets at least 3 times per year 2. Teaching and Learning - which meets at least 3 times per year 3. Health and Safety/Safeguarding - which meets at least 3 times per year The day-to-day management of the school is delegated to the Headteacher, who has appointed a Leadership Team, who meet weekly to discuss both strategic and day-to-day responsibilities. A scheme of delegation has been approved which provides a clear line of responsibilities at all levels. The Trustees are responsible for setting general policy, adopting an annual plan and budget, monitoring the Academy by the use of budgets and making major decisions about the direction of the Academy, capital expenditure and as appropriate the appointment of the Headteacher or Business Manager. The management structure consists of three levels: the Trustees, the Senior Leadership Team and the Middle Management Team. The aim of the management structure is to devolve responsibility and encourage involvement in decision making at all levels and maximise opportunities for succession planning. CONNECTED ORGANISATIONS, INCLUDING RELATED PARTY RELATIONSHIPS Dorothy Goodman School is located across five bases. There are two main sites, one catering for 3 to 14 year olds and one catering for 14 to 19 year olds. The school also has three satellite bases which are located within mainstream schools. These satellite bases offer pupils opportunities to access a range of mainstream lessons and social activities based upon their individual needs while still receiving the personalised support available from a special school. One satellite is based on the site of Richmond Primary School and has four classes for pupils in Key Stages 1 and 2. Two classes for Key Stage 3 pupils are based within Redmoor Academy and two classes for Key Stage 4 and 5 pupils are based at John Cleveland College. Page 4

7 TRUSTEES' REPORT (continued) Dorothy Goodman is an active member of the Forest Way Teaching School Alliance. This involves working collectively with the other schools involved to offer continuing professional development for our own staff and those who work in other schools within the alliance. This includes providing initial Teacher Training for Schools Direct in conjunction with Derby University. RISK MANAGEMENT A thorough Risk Management Assessment, using guidelines provided by the EFA will be conducted and will be assessed and approved via the Finance Committee along with the Statement of Internal Control. The assessment will involve identifying the types of risk the Academy faces, prioritising them into operational and financial impacts, accessing the likelihood of the occurrence and the impact that the occurrence will have on the Academy, putting in place controls to mitigate such risks. Whilst reviewed via the Finance Committee on an annual basis the Risk Register will be a live document which will be reviewed regularly with Trustees and Management. OBJECTIVES AND ACTIVITIES OBJECTS AND AIMS The principal object and activity of the Academy is to advance for the public benefit education in the United Kingdom, in particular but without prejudice to the generality of the foregoing, by establishing, maintaining, carrying on, managing and developing a school specially organised to make special educational provision for pupils with a wide range of learning disabilities. OBJECTIVES, STRATEGIES AND ACTIVITIES Dorothy Goodman School aims to provide a safe, stimulating and caring educational environment, in which all children are able to learn and develop their social, creative and academic skills. The work is made relevant and interesting through careful planning and a programme of thematic work, which links the subjects together and makes them meaningful to the pupils. All classes study communication and literacy, thinking skills and mathematics as well as personal social and health education. Throughout the curriculum, students are encouraged to have an understanding of themselves and the world about them, enabling them to become self-confident young people and to develop skills in a setting which is both structured and caring. The Academy provides access to a broad, balanced and relevant curriculum, with a wide range of learning experiences available. The Academy recognises the need to offer specialised educational work, depending on the identified needs of the pupils. As students move to the Upper Site at age 14 they undertake a range of accredited work and choose from a range of vocational pathways. PUBLIC BENEFIT The Trustees of the Academy Trust have complied with their duty to have due regard to the guidance on Public Benefit published by the Charity Commission in exercising their powers and duties. The activities undertaken to further the Academy Trust's purpose for the Public Benefit include encouraging public use of the Academy buildings which includes use of the halls, classrooms and hydrotherapy pool. Public use by others with disabilities is particularly encouraged. Page 5

8 TRUSTEES' REPORT (continued) STRATEGIC REPORT ACHIEVEMENTS AND PERFORMANCE We measure our pupils' success by the progress they make. For some pupils successfully learning to communicate a choice between two things is great progress while for others gaining GCSE qualifications is an equivalent success. All these achievements are as important as each other. This year our pupils have made amazing progress. At the end of Key Stage 2 nearly all pupils made good or outstanding progress in English (including communication skills) and Mathematics (including early thinking skills). Half of the pupils made outstanding progress in English and more than half made outstanding progress in Mathematics. At the end of Key Stage 4 nearly every student made good progress so that they reached their expected levels or higher. Students gained a range of accreditation commensurate with their previous levels of attainment.this year six students took GCSE examinations. They studied one or more of the following subjects at GCSE or equivalent: English, Mathematics, Science, Dance, Personal Social Education or Art and Design. All their progress in these subjects has been good or better. Across the group they achieved three Level 2 (GCSE grade A-C) qualifications and seven Level 1 (GCSE D - G) qualifications. The emphasis on individualised learning is at present best represented by the percentage of pupils achieving challenging targets set by benchmarking their achievements with other pupils who start at the same level at a similar age. The proportions who achieve these targets in core subjects is high and reflects the continuing focus on helping pupils to believe in themselves and acquire important life skills. All the pupils who have left the school have been successful in gaining further education places or training. The number of pupils attending the school has continued to increase and at the time of this report 241 are registered at the school. The pupils are taught at one of five sites, three of which are based upon primary and secondary mainstream school sites. GOING CONCERN After making appropriate enquiries, the Board of Trustees has a reasonable expectation that the Academy Trust has adequate resources to continue in operational existence for the foreseeable future. For this reason it continues to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Statement of Accounting Policies. KEY FINANCIAL PERFORMANCE INDICATORS Financial reports and budget updates and projections presented to the Finance Committee have shown that the Academy has continued to stay well within its budget and a healthy carry forward figure was achieved. The funding available to the school has been used to provide suitable education for 238 pupils over the last academic year. This has included funding to ensure pupils have the necessary additional support when at risk of not making expected progress or when circumstances mean that pupils need more support to keep them safe. FINANCIAL REVIEW The majority of the Academy's income is obtained from the Education Funding Agency in the form of recurrent grants, the use of which is restricted to particular purposes. The grants received from the EFA during the period ended 31 August 2014 and the associated expenditure are shown as restricted funds in the Statement of Page 6

9 TRUSTEES' REPORT (continued) Financial Activities. In addition funds are received from various activities carried out to generate funds, which defray running costs of the Academy not met by restricted grants. Any surplus is carried forward as an unrestricted fund in the balance sheet. FINANCIAL AND RISK MANAGEMENT OBJECTIVES AND POLICIES The Academy Trust practices through its Board, namely the Governing Body and the constituted subcommittees, risk management principles. Any major risks highlighted at any sub-committee are brought to the main Board with proposed mitigating actions and they continue to be reported until the risk is adequately mitigated. The Governing Body accepts managed risk as an inevitable part of its operations but maintains an objective not to run unacceptable levels of risk in any area. The subjective nature of this process requires major risks to be resolved by the Governing Body collectively, whilst more minor risks are dealt with by senior executive officers. PRINCIPAL RISKS AND UNCERTAINTIES The principal risks facing the Academy are included in the Risk Register and Management Plan and include: Strategic and Reputational Risks - mitigated by robust ongoing self-evaluation, forward planning and risk management procedures. Operational Risks - mitigated by tight financial accountability and risk assessments. Compliance Risks - mitigated by tiered accountability and regular assessment of compliance requirement. Financial Risks - The principal financial risks are a reduction in pupil numbers, reduction in central government funding, unbudgeted increase in teaching or support staff costs, or unbudgeted major capital repairs. The risks presented here are mitigated by strategic planning where staffing to pupil ratio is led by the numbers on roll and the level of their needs. Regular condition surveys of the premises leading to ongoing maintenance and the Trustees agreement to hold a contingency of at least 90,000 year on year for unforeseen capital costs. The Academy Trust practices through its Board, namely the Governing Body and the constituted subcommittees, risk management principles. Any major risks highlighted at any sub-committee are brought to the main Board with proposed mitigating actions and they continue to be reported until the risk is adequately mitigated. The Governing Body accepts managed risk as an inevitable part of its operations but maintains an objective not to run unacceptable levels of risk in any area. The subjective nature of this process requires major risks to be resolved by the Governing Body collectively, whilst more minor risks are dealt with by senior executive officers. RESERVES POLICY The Governors will review the reserve levels of the Academy annually. This review encompasses the nature of income and expenditure streams, the need to match income with commitments and the nature of reserves. The level of reserves will be kept under review by the Trustees. Page 7

10 TRUSTEES' REPORT (continued) At 31 August 2014 the total funds comprised: Unrestricted: Restricted: Fixed asset fund GAG Pension reserve Other 221,000 9,457, ,000 (1,820,000) 10,000 8,180,000 The deficit on the pension reserve relates to the non-teaching staff pension scheme where, unlike the teachers scheme, separate assets are held to fund future liabilities. The deficit can be met in the longer term from any combination of increased employer or employee contributions, increased government funding or changes to scheme benefits. The restricted funds will be spent in accordance with the terms of the particular funds. Unrestricted funds are for use on the general purposes of the Academy, at the discretion of the Trustees. The aim of the Trustees is to increase this reserve to meet future working capital requirements. INVESTMENT POLICY AND PERFORMANCE The Academy will monitor cash flow on a regular basis and ensure that surplus funds are deposited so as to maximise interest, with a consideration to only investing in risk free and immediately accessible deposit accounts. PLANS FOR THE FUTURE The Academy will continue to provide a safe, stimulating and caring educational environment, in which all children are able to learn and develop their social, creative, academic and vocational skills. The main focus for development over the next two years will be to continue a smooth transition from a three tier model of education to a two tier model in parallel with this development in local schools. The aim is to maximise inclusion opportunities for the pupils who attend Dorothy Goodman School. A priority over the next two years is to develop and fund a plan, to be implemented in future years, for more suitable premises that will enable all our pupils to continue make good or better progress even with the expected increase of admissions. Further priorities include is the restructuring of the curriculum so that secondary aged pupils can access more vocational opportunities and improving communication systems for pupils and for administration across the school. The Academy will be focusing on ensuring more pupils make progress at the highest levels across a wider range of subjects in the primary department when assessed using a range of stringent criteria. The focus for students 14 and over will be to ensure the curriculum better prepares them for the work place and/or independent living. A review of staffing to ensure the necessary levels of expertise and the most efficient use of resources is being undertaken. Similarly developing an improved information communication technology infrastructure within the school is ongoing so that the final revised system provides a good platform for personalising learning and effective, time efficient administration across the five sites. Page 8

11 TRUSTEES" REPORT (continued) DISCLOSURE OF INFORMATION TO AUDITOR Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that: so far as that Trustee is aware, there is no relevant audit information of which the charitable company's auditor is unaware, and that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable company's auditor is aware of that information. This report, incorporating the Strategic Report, was approved by order of the Board of Trustees, as the company directors, on 8 December 2014 and signed on the board's behalf by: Jeffrey Bowes Chair of Trustees Page 9

12 GOVERNANCE STATEMENT SCOPE OF RESPONSIBILITY As Trustees, we acknowledge we have overall responsibility for ensuring that Dorothy Goodman School has an effective and appropriate system of control, financial and otherwise. However such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives, and can provide only reasonable and not absolute assurance against material misstatement or loss. The Board of Trustees has delegated the day-to-day responsibility to the Headteacher, as Accounting Officer, for ensuring financial controls conform with the requirements of both propriety and good financial management and in accordance with the requirements and responsibilities assigned to it in the funding agreement between Dorothy Goodman School and the Secretary of State for Education. They are also responsible for reporting to the Board of Trustees any material weaknesses or breakdowns in internal control. GOVERNANCE The information on governance included here supplements that described in the Trustees' Report and in the Trustees' Responsibilities Statement. The Board of Trustees has formally met 3 times during the year. Attendance during the year at meetings of the Board of Trustees was as follows: Trustee Meetings attended Out of a possible Janet Thompson 3 3 Jeffrey Bowes 3 3 Andrew Childerhouse 1 1 Pamela Harbot 1 3 Stephen Fray 3 3 Philip Stock 3 3 Brian Cartwright 3 3 Jonathon Lees 3 3 Chloe Sanders 0 2 Georgina Harrison 1 1 Sharron Richards 2 2 Caroline Henton 2 2 James Lison 0 1 Caroline Adlam 1 1 Lynn Pallett 0 0 Georgina Harrison, Andrew Childerhouse, Chloe Sanders and Stephen Fray all resigned during the year. Chloe Sanders was on maternity leave during the year and did not attend any meetings. The change in personnel on the Board has enabled the Academy to allocate roles more effectively once new Trustees are trained. There are now sufficient members to help monitor and evaluate all aspects of the school's work. Governance reviews: Each year the school invites an external party to carry out an external validation of the school's self-evaluation of performance. This occurred in November 2013 and April Leadership and management including governance were found to be strong. The next external review will be taking place in late November Each external review includes evaluating the effectiveness of leadership and management including governance as well as pupils' achievement, behaviour and safety and the quality of teaching. Following this review in Autumn 2014 Trustees will be seeking an external review of the whole Governing Body in the second quarter of The Finance, Audit and Staffing Committee is a sub-committee of the main Board of Trustees. Its purpose is to: Page 10

13 GOVERNANCE STATEMENT (continued) undertake the initial review and authorisation of the annual budget prior to final approval by the Full Governing Body regularly monitor actual expenditure and income against budget ensuring the annual accounts are produced in accordance with the requirements of the Companies Act 2006, the Charities Act 2011 and the EFA guidance issued to Academies reviewing the reports of the Responsible Officer on the effectiveness of the financial procedures and controls ensure compliance with legislation and guidance for financial and staffing issues throughout the school review expenditure in line with school strategic plans review the effectiveness of staffing structures on the performance and wellbeing of pupils evaluate and support recruitment to ensure the necessary expertise is available across the school within the parameters of the budget Attendance at meetings in the year was as follows: Trustee Meetings attended Out of a possible Janet Thompson 6 6 Jeffrey Bowes 6 6 Andrew Childerhouse 2 2 Brian Cartwright 5 6 Jonathon Lees 4 6 Caroline Henton 2 4 THE PURPOSE OF THE SYSTEM OF INTERNAL CONTROL The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk of failure to achieve policies, aims and objectives; it can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an ongoing process designed to identify and prioritise the risks to the achievement of Academy 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 Dorothy Goodman School 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 Academy is exposed together with the operating, financial and compliance controls that have been implemented to mitigate those risks. The Board of Trustees is of the view that there is a formal ongoing process for identifying, evaluating and managing the Academy's significant risks, that has been in place for the year 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. THE RISK AND CONTROL FRAMEWORK The Academy's system of internal financial control is based on a framework of regular management information and administrative procedures including the segregation of duties and a system of delegation and accountability. In particular, it includes: comprehensive budgeting and monitoring systems with an annual budget and periodic financial reports which are reviewed and agreed by the Board of Trustees; regular reviews by the Finance, Audit and Staffing Committee of reports which indicate financial performance against the forecasts and of major purchase plans, capital works and expenditure Page 11

14 GOVERNANCE STATEMENT (continued) programmes; setting targets to measure financial and other performance; clearly defined purchasing (asset purchase or capital investment) guidelines:. delegation of authority and segregation of duties; and identification and management of risks. The Board of Trustees has considered the need for a specific internal audit function and has decided to appoint Leicestershire County Council as internal auditor. The internal auditor's role includes giving advice on financial matters and performing a range of checks on the Academy's financial systems. On a quarterly basis, the internal auditor 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. REVIEW OF EFFECTIVENESS As Accounting Officer, the Headteacher has responsibility for reviewing the effectiveness of the system of internal control. During the year in question the review has been informed by: the work of the internal auditor; the work of the external auditors; the financial management and governance self-assessment process; the work of the executive managers within the Academy who have responsibility for the development and maintenance of the internal control framework.» The Accounting Officer has been advised of the implications of the result of their review of the system of internal control by the Finance, Audit and Staffing 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 8 December 2014 and signed on its behalf, by: Jeffrey Bowes Chair of Trustees Janet Thompson Accounting Officer Page 12

15 STATEMENT ON REGULARITY, PROPRIETY AND COMPLIANCE As Accounting Officer of Dorothy Goodman School I have considered my responsibility to notify the Academy Board of Trustees and the Education Funding Agency of material irregularity, impropriety and non-compliance with EFA terms and conditions of funding, under the funding agreement in place between the Academy and the Secretary of State. As part of my consideration I have had due regard to the requirements of the Academies Financial Handbook. I confirm that I and the Academy Board of Trustees are able to identify any material, irregular or improper use of funds by the Academy, or material non-compliance with the terms and conditions of funding under the Academy's funding agreement and the Academies Financial Handbook. I confirm that no instances of material irregularity, impropriety or funding non-compliance have been discovered to date. If any instances are identified after the date of this statement, these will be notified to the Board of Trustees and EFA. Janet Thompson Accounting Officer Date: 8 December 2014 Page 13

16 TRUSTEES' RESPONSIBILITIES STATEMENT The Trustees (who act as governors of Dorothy Goodman School and are also the directors of the charitable company for the purposes of company law) are responsible for preparing the Trustees' Report (including the Strategic Report) and the financial statements in accordance with the Annual Accounts Direction published by the Education Funding Agency, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations. Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for the year. In preparing these financial statements, the Trustees are required to: select suitable accounting policies and then apply them consistently; observe the methods and principles of the Charities SORP; make judgments and accounting estimates that are reasonable and prudent; state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for ensuring that in its conduct and operation the charitable company applies financial and other controls, which conform with the requirements both of propriety and of good financial management. They are also responsible for ensuring grants received from EFA/DfE have been applied for the purposes intended. The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Approved by order of the members of the Board of Trustees on 8 December 2014 and signed on its behalf by: Jeffrey Bowes Chair of Trustees Page 14

17 INDEPENDENT AUDITORS' REPORT TO THE BOARD OF TRUSTEES OF We have audited the financial statements of Dorothy Goodman School for the year ended 31 August 2014 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and the Academies Accounts Direction 2013 to 2014 issued by the Education Funding Agency. This report is made solely to the Academy's Board of Trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act Our audit work has been undertaken so that we might state to the Academy's Board of Trustees those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Academy's Board of Trustees for our audit work, for this report, or for the opinion we have formed. RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND AUDITORS As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the Academy for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors. SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Academy's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Trustees; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Trustees' Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. OPINION ON FINANCIAL STATEMENTS In our opinion the financial statements: give a true and fair view of the state of the Academy's affairs as at 31 August 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 15

18 INDEPENDENT AUDITORS' REPORT TO THE BOARD OF TRUSTEES OF MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or the financial statements are not in agreement with the accounting records and returns; or certain disclosures of Trustees' remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit. /w\m y ~ Robert Nelson BA FCA DChA (Senior Statutory Auditor) for and on behalf of MHA Maclntyre Hudson Chartered Accountants Statutory Auditors 11 Merus Court Meridian Business Park Leicester LE191RJ 16 December 2014 Page 16

19 INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO DOROTHY GOODMAN SCHOOL AND THE EDUCATION FUNDING AGENCY In accordance with the terms of our engagement letter dated 5 November 2013 and further to the requirements of the Education Funding Agency (EFA) as included in the Academies Accounts Direction 2013 to 2014, we have carried out an engagement to obtain limited assurance about whether the expenditure disbursed and income received by Dorothy Goodman School 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 Dorothy Goodman School and EFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to Dorothy Goodman School and EFA those matters we are required to state in a report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Dorothy Goodman School and EFA, for our work, for this report, or for the conclusion we have formed. RESPECTIVE RESPONSIBILITIES OF 'S ACCOUNTING OFFICER AND THE REPORTING ACCOUNTANT The Accounting Officer is responsible, under the requirements of Dorothy Goodman School's funding agreement with the Secretary of State for Education dated 30 May 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 2013 to We report to you whether anything has come to our attention in carrying out our work which suggests that in all material respects, expenditure disbursed and income received during the year 1 September 2013 to 31 August 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 to 2014 issued by EFA. We performed a limited assurance engagement as defined in our engagement letter. The objective of a limited assurance engagement is to perform such procedures as to obtain information and explanations in order to provide us with sufficient appropriate evidence to express a negative conclusion on regularity. A limited assurance engagement is more limited in scope than a reasonable assurance engagement and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in a reasonable assurance engagement. Accordingly, we do not express a positive opinion. Our engagement includes examination, on a test basis, of evidence relevant to the regularity and propriety of the Academy's income and expenditure. The work undertaken to draw our conclusions includes: reviewing the information in the Financial Management and Governance Self-assessment (FMGS) and making appropriate enquiries of the Accounting Officer: a review of the objectives and activities of the academy, with reference to the income streams and other information available to us as auditors of the academy; testing of a sample of grants received and other income streams; testing of a sample of payments to suppliers and other third parties; testing of a sample of payroll payments to staff; Page 17

20 INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO DOROTHY GOODMAN SCHOOL AND THE EDUCATION FUNDING AGENCY (continued) evaluating the internal control procedures and reporting lines, and testing as appropriate; and reviewing the Minutes of the meetings of the Governing Body and other evidence made available to us, relevant to our consideration of regularity. 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. IWWA /Wtxovw ve MHA Maclntyre Hudson Chartered Accountants Statutory Auditors 11 Merus Court Meridian Business Park Leicester LE191RJ 16 December 2014 Page 18

21 STATEMENT OF FINANCIAL ACTIVITIES (Incorporating Income and Expenditure Account and Statement of Total Recognised Gains and Losses) Note Unrestricted funds 2014 Restricted funds 2014 Restricted fixed asset funds 2014 Total Period ended funds 31 August INCOMING RESOURCES Incoming resources from generated funds: Asssets transferred on conversion Voluntary income Activities for generating funds Investment income Funding for the Academy Trust's educational operations , ,202 8, ,787 TOTAL INCOMING RESOURCES 42 4, ,255 13,549 RESOURCES EXPENDED Costs of activities for generating funds 6 Charitable activities 7 Governance costs , , , TOTAL RESOURCES EXPENDED , ,232 4,732 NET INCOMING/(OUTGOING) RESOURCES BEFORE TRANSFERS, CARRIED FORWARD (91) Page 19

22 STATEMENT OF FINANCIAL ACTIVITIES (continued) Unrestricted funds 2014 Note Restricted funds 2014 Restricted fixed asset funds 2014 Total Period ended funds 31 August NET INCOMING RESOURCES BEFORE TRANSFERS, BROUGHT FORWARD (91) 23 8,817 Transfers between funds (24) NET INCOMEZ(EXPENDITURE) FOR THE YEAR (115) 23 8,817 Actuarial losses on defined benefit pension schemes (515) (515) (145) NET MOVEMENT IN FUNDS FOR THE YEAR 24 (401) (115) (492) 8,672 Total funds at 1 September (1,097) 9,572 8,672 TOTAL FUNDS AT 31 AUGUST (1,498) 9,457 8,180 8,672 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 43 form part of these financial statements. Page 20

23 REGISTERED NUMBER: BALANCE SHEET AS AT 31 AUGUST 2014 Note FIXED ASSETS Tangible assets 15 9,457 9,572 CURRENT ASSETS Debtors Cash at bank and in hand CREDITORS: amounts falling due within one year 17 (166) (148) NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES Defined benefit pension scheme liability 24 10,000 (1,820) 9,911 (1,239) NET ASSETS INCLUDING PENSION SCHEME LIABILITY 8,180 8,672 FUNDS OF THE ACADEMY Restricted funds: Restricted funds 18 Restricted fixed asset funds 18 Restricted funds excluding pension liability Pension reserve 322 9,457 9,779 (1,820) 142 9,572 9,714 (1,239) Total restricted funds Unrestricted funds 18 TOTAL FUNDS 7, ,180 8, ,672 The financial statements were approved by the Trustees, and authorised for issue, on 8 Decer signed on their behalf, by: 14 and are Jeffrey Bowes Chair of Trustees Janet Thompson Accounting Officer The notes on pages 23 to 43 form part of these financial statements. Page 21

24 CASH FLOW STATEMENT Period ended August 2013 Note Net cash flow from operating activities Returns on investments and servicing of finance Capital expenditure and financial investment 21 (75) (201) Cash transferred on conversion to an Academy Trust INCREASE IN CASH IN THE YEAR RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS Period ended August 2013 increase in cash in the year MOVEMENT IN NET FUNDS IN THE YEAR Net funds at 1 September NET FUNDS AT 31 AUGUST The notes on pages 23 to 43 form 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. 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 to 2014 issued by EFA, applicable accounting standards and the Companies Act A summary of the principal accounting polcies, which have been applied consistently, except where noted, is set out below. 1.2 Incoming resources All incoming resources are included in the Statement of Financial Activities when the Academy 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 sheet as restricted funds. Sponsorship income provided to the Academy which amounts to a donation is recognised in the Statement of Financial Activities in the period in which it is receivable, where there is certainty of receipt and it is measurable. The value of donated services and gifts in kind provided to the Academy are recognised at their open market value in the period in which they are receivable as incoming resources, where the benefit to the Academy can be reliably measured. An equivalent amount is included as expenditure under the relevant heading in the Statement of Financial Activities, except where the gift in kind was a fixed asset in which case the amount is included in the appropriate fixed asset category and depreciated over the useful economic life in accordance with the Academy's policies. Donations are recognised on a receivable basis where there is certainty of receipt and the amount can be reliably measured. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Page 23

26 NOTES TO THE FINANCIAL STATEMENTS 1. ACCOUNTING POLICIES (continued) 1.3 Resources expended Expenditure is recognised in the period in which a liability is incurred and has been classified under headings that aggregate all costs related to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use. Other support costs are allocated based on the spread of staff costs. Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds. Charitable activities are costs incurred in the Academy's educational operations. Governance costs include the costs attributable to the Academy's compliance with constitutional and statutory requirements, including audit, strategic management and Trustees' meetings and reimbursed expenses. All resources expended are inclusive of irrecoverable VAT. 1.4 Fund accounting Unrestricted income funds represent those resources which may be used towards meeting any of the charitable objects of the Academy at the discretion of the Trustees. Restricted fixed asset funds are resources which are to be applied to specific capital purposes imposed by funders 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 of Education and the Education Funding Agency.. Investment income, gains and losses are allocated to the appropriate fund. 1.5 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 Academy 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. Page 24