Downview Trust Trustees Report and Audited Accounts Period ended 31 August 2014

Transcription

1 Downview Trust Trustees Report and Audited Accounts Period ended 31 August 2014 The Trustees Report describes the legal structure and organisation of the Trust, being the body which is run by the governors, or trustees as they are known within an academy, and has strategic responsibility for the running of the school. The report also contains a review of the school s achievements and performance for the last academic year. The Governance Statement sets out the role of the trustees / governors and reports on attendance at committee meetings. It also describes the measures and framework in place to manage the risks that have been identified, and which may otherwise potentially impact upon the operation of the school. The following reports (on pages 12 to 16) provide confirmation from the trustees and the Trust s auditors that, amongst other matters, the accounts as presented are true and fair and the school s funds have been dealt with properly for the benefit of the pupils. The Statement of Financial Activities (page 17) summarises the income and expenditure of the school during the year under review. The summary is supported by some of the many notes that follow on pages 20 to 37, but it is worth noting that: o The Incoming Resources of 5.38 million include 3.7 million which reflects the value of the school s land and buildings rather than cash we have received o Also included is the figure of 125,000 which is the school s share of the Local Government Pension Scheme liability this is for reporting purposes only and we will not be called upon to pay this sum! o Removing these two elements leaves us with income of 1.68 million and outgoings of 1.61 million. The difference, of around 75,000, represents a buffer fund to cover unanticipated, emergency expenditure and the fact that the timing of money coming in and going out cannot always be relied upon. The Balance Sheet (page 18) shows a summary of our financial position at a point in time, being 31 August o After taking account of the land and buildings, included within Fixed assets, and the pension liability, we have a balance, shown as Net current assets of 113,159 which is the difference between our assets held and liabilities due in the short term at that time. o Our bank balances totalled 217k at this time, but this was partially due to the timing of payments to be made the figure of 171,543 detailed in note 13 represents amounts owed at the time, large amounts of which were paid out early in the Autumn term. Go to Page 2 to view Trustee Report and Audited Accounts 2014

2 Company Registration No (England and Wales) (A COMPANY LIMITED BY GUARANTEE) TRUSTEES' REPORT AND AUDITED ACCOUNTS

3 CONTENTS Page Reference and administrative details 1-2 Trustees' report 3-8 Governance statement 9-11 Statement on regularity, propriety and compliance 12 Statement of trustees' responsibilities 13 Independent auditor's report on the accounts 14 Independent reporting accountant's report on regularity Statement of financial activities 17 Balance sheet 18 Cash flow statement 19 Notes to the accounts 20-37

4 REFERENCE AND ADMINISTRATIVE DETAILS Trustees Mrs S Hawthorn (Chair) (Appointed 9 July 2013) *# Mrs M Williams (Headteacher and accounting officer) (Appointed 9 July 2013) *# Mrs M J Childs (Appointed 9 July 2013) * Mr A S Holland (Appointed 9 July 2013) Mrs J E Lord (Appointed 9 July 2013) # Mr J N Martin (Staff) (Appointed 9 July 2013) *# Mrs F McKenzie (Staff) (Appointed 9 July 2013) * Mrs V M Morris (Appointed 9 July 2013) *# Mr P Nicholas (Appointed 9 July 2013) Mr C J Pacey (Appointed 9 July 2013) # Mrs J Twine (Staff) (Appointed 9 July 2013) * members of the curriculum committee # members of the finance, audit and staffing committee Members Mrs M Williams Mrs S Hawthorn Mr C J Pacey Senior management team - Headteacher Mrs M Williams - Deputy Headteacher Mr J Martin - SENCO Mrs R Adams - Business Manager Mrs N Courtney Company registration number Principal address Independent auditor Bankers (England and Wales) Wroxham Way Felpham Bognor Regis West Sussex PO22 8ER Carpenter Box Amelia House Crescent Road Worthing West Sussex BN11 1QR Lloyds Bank 1 West Street Horsham West Sussex RH12 1PA United Kingdom - 1 -

5 REFERENCE AND ADMINISTRATIVE DETAILS Solicitors Pannone LLP 123 Deansgate Manchester M3 2BU United Kingdom - 2 -

6 TRUSTEES' REPORT The trustees present their annual report together with the accounts and independent auditor's reports of the charitable company for the period 9 July 2013 to 31 August The annual report serves the purposes of both a trustees' report, and a directors' report under company law. The academy trust operates an academy for pupils aged 4 to 11 serving a catchment area in Bognor Regis. It has a pupil capacity of 420 and had a roll of 429 in the school census on 16 January Structure, governance and management Constitution The Academy Trust is a company limited by guarantee and an exempt charity. The charitable company's Master Funding Agreement and Supplementary Funding Agreement together with the Articles of Association and the EFA's Financial Handbook are the primary governing documents of the academy trust. The Trustees are also the directors of the charitable company for the purposes of company law. Details of the trustees who served during the period 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 A Trustee may benefit from any indemnity insurance purchased at the Academy Trust s expense to cover the liability of the Trustees which by virtue of any rule of law would otherwise attach to them in respect of any negligence, default or breach of trust or breach of duty of which they may be guilty in relation to the Academy Trust: provided that any such insurance shall not extend to (i) any claim arising from any act or omission which the Trustees knew to be a breach of trust or breach of duty or which was committed by the Trustees in reckless disregard to whether it was a breach of trust or breach of duty or not; and (ii) the costs of any unsuccessful defence to a criminal prosecution brought against the Trustees in their capacity as directors of the Academy Trust. Method of recruitment and appointment or election of trustees The Academy Trust shall have the following Trustees as set out in its articles of association and funding agreement: 3 members of the Academy Trust A minimum of 2 Parent Trustees who are elected by parents of registered pupils of the Academy. A Parent Trustee must be a parent of a pupil at the Academy at the time when they are elected. Where a vacancy for a Parent Trustee is required to be filled by election, the Governing Body shall take such steps as are reasonably practicable to secure that every person known to them to be a parent of a registered pupil at the Academy is informed of the vacancy and that it is required to be filled by election, informed that they are entitled to stand as a candidate, and vote at the election, and given the opportunity to do so. Up to 3 staff trustees appointed by the Governing Body (including the headteacher) who are employees of the Academy Trust. The total number of trustees who are employees of the Academy Trust shall not exceed one third of the total number of trustees. Up to 3 Co-opted Trustees. A Co-opted Trustee is appointed to be a Director by being co-opted by Trustees who have not themselves been so appointed Up to 3 Member Appointed Trustees. The members may appoint Trustees through such process that they determine

7 TRUSTEES' REPORT (CONTINUED) Policies and procedures adopted for the induction and training of trustees The Academy Trust has a Trustee Induction Policy. The training and induction of new Trustees includes a tour of the Academy and a chance to meet the staff and children. All Trustees are provided with access to The Key, an online resource for school leaders, including regular updates on practice, legislation and guidance. A new Trustee is provided with an experienced buddy. All Trustees are provided with a handbook, containing copies of policies, procedures, plans and other documents that will assist them in their role as Trustees. The governing body as a whole engages in regular training delivered by school staff and individual trustees or external providers. Trustees are invited to attend INSET Days and contribute to whole school improvement planning. Organisational structure The Academy Trust has a leadership structure which consists of the Governors, The Senior Leadership Team (SLT) and Lead Learners. The aim of the leadership structure is to devolve and disperse responsibility and encourage involvement in decision making at all levels. The Headteacher is the Accounting Officer. The SLT consists of the Headteacher, Deputy Headteacher, SENCO and two Senior Lead Learners; a further two Lead Learners make up the school s management and operational team. This team controls the Academy Trust at an executive level implementing the policies laid down by the Governors and reporting back to them. The Governors are responsible for setting general policy, adopting an annual School Improvement Plan, approving the statutory accounts, monitoring the Academy Trust by the use of budgets and other data, and making major decisions about the direction of the Academy Trust, capital expenditure and staff appointments. The Headteacher is responsible for the appointment of staff, though appointment panels for teaching posts always include a Governor. Connected organisations including related party relationships There are no related parties which either control or significantly influence the decisions and operations of Downview Primary School. There are no sponsors. The school has a Parent Teacher Association which fund raises for the benefit of the children of Downview Primary School. This association is a registered Charity (no ). Downview Primary School is part of the Felpham and Bognor (FAB) group of schools. The schools have a Memorandum of Understanding (MOU) to foster good relationships, to share best practice, and to exploit the opportunities of collaboration to deliver benefits in terms of both financial efficiency and educational standards. Objectives and activities Objects and aims The principle object of the charitable company (Downview Trust) is the operation of Downview Primary School, to provide education and care for pupils of different abilities between the ages of 4 and 11. In accordance with the Articles of Association the charitable company has adopted a Funding Agreement approved by the Secretary of State for Education. The Funding Agreement specifies, amongst other things: that the school has a curriculum that is balanced and broadly based; that it provides for pupils of different abilities; and that it provides education for pupils who are wholly or mainly drawn from the area in which the school is situated - 4 -

8 TRUSTEES' REPORT (CONTINUED) Objectives, strategies and activities The principle objective of the Academy Trust 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 schools offering a broad and balanced curriculum or educational institutions which are principally concerned with providing full-time or part-time education for children of compulsory school age who, by reason of illness, exclusion from school or otherwise, may not for any period receive suitable education unless alternative provision is made for them. The Aims of the Academy Trust during the period ended 31 August 2014 are summarised below. At Downview Primary School we grow and learn together every day. For all children to reach their potential we aim to: ensure that teaching and learning is consistently of the highest quality provide an inspiring, supportive and safe environment enable every child to participate in all aspects of school life nurture and encourage each child to take their place in society as an active, responsible and respectful citizen Our school is a community in which an attitude of consideration and respect is promoted and in which children staff and parents are happy to be part of a happy and caring environment. In order to achieve this, we will aim to: develop a wide range of skills for learning: Collaboration, Creativity, Communication, Independence and Resilience and Risk-taking develop self -confident and healthy individuals acquire essential knowledge and understanding in all areas of learning and experience foster an enthusiastic attitude to learning Key priorities for the year are contained in our School Improvement Plan. Our main priorities for the coming year are to improve learning in our school to raise standards and narrow the gap and for a higher percentage to attain end of year expectations: to revise our maths schemes of work in line with the new National curriculum to improve the children s phonic and spelling knowledge to improve writing standards, particularly of boys to foster a love of reading Public benefit The Trustees have complied with their duty to have due regard to the guidance on public benefit issued by the Charity Commission in exercising their powers and duties

9 TRUSTEES' REPORT (CONTINUED) Strategic report Achievements and performance The Academy Trust continues to be popular with parents with all year groups full and a waiting list maintained for most year groups. Our achievement continues to excel in many areas. We have achieved above national average standards in children s attainment in key stage 1 and 2 for the last 2 years. In 2014 our attainment scores averaged more than 90% in the core subjects and children made good or better progress from KS1 to KS2. One child achieved level 6 in GPS (Grammar, Punctuation and Spelling) and three children achieved level 6 in maths which is outstanding. KS2 Results for 2014 LEVEL Reading 89% 91% Reading 2 LEVEL PROGRESS 91% 94% Writing 87% 91% Writing 2 LEVEL PROGRESS 96% 98% MATHEMATICS 86% 91% MATHS 2 LEVEL PROGRESS 88% 92% Reading & Writing & Maths 84% 84% Downview is a high achieving school. Children enter Reception with levels of skills and understanding which are increasingly below national averages, but leave Downview with levels which are above national expectations. There is a busy working atmosphere throughout the school. Children are friendly, polite and able to talk confidently about their learning. They are justifiably proud of their school and of the progress they make in the basic skills. Viv Earwicker Basic Skills Quality Mark July We are a large, friendly, inclusive primary school serving a diverse and vibrant community. Downview is currently a 2 form entry primary school expanding to a 3 form entry in Not only do we aim for seamless transitions between the year groups in our school, we also place great emphasis on the start children make to Downview and also the independence of our year 6 children and on their preparation for secondary school. Children are enthusiastic learners both in and out of school; this is evident through their school achievements, the quality of take-away tasks undertaken at home and the after school and out of school clubs at which many children attend. The children's attitude to learning and their behaviour is good. The school has a good reputation within the community. At Downview Primary School we grow and learn together every day. All members of our school community actively contribute to this vision. There is a very strong learning culture that enables us to move forward and respond to the needs and aspirations of our children and the influences of the wider community. In this context our aim is to educate the whole child providing an expansive education which develops powerful and independent learners. The school is proud of its achievements and has been awarded the Gold Kite mark for School Sports, Arts Mark, Active Mark, Quality Mark for Basic Skills III, Dyslexia Award, Autism Aware Award, Enhanced National Healthy Schools Status, Eco Schools (Bronze), Travel Plan Mark 3 and Sing Up

10 TRUSTEES' REPORT (CONTINUED) Key performance indicators The Academy has provided good value for money in: Sustaining the school s outstanding Ofsted judgement Improving educational results achieving performance in line with or better than national averages Improving pupil attendance and punctuality achieving statistics in line with or better than national averages Receiving positive feedback from school s questionnaire using Ofsted Parent View questions Continued good purchasing Continued good income generation from letting the school premises to a Nursery, Before + After School + Holiday Child care provider, Karate and Zumba / Pilates classes. Continued good governance and oversight The school s financial position should remain sufficient to fund future needs. Going concern After making appropriate enquiries, the Academy Trust has a reasonable expectation that the academy trust has adequate resources to continue in operational existence for the foreseeable future. For this reason the board of trustees continues to adopt the going concern basis in preparing the accounts. Further details regarding the adoption of the going concern basis can be found in the statement of accounting policies. Financial review The principle source of funding for the Academy Trust is the General Academy Grant (GAG) obtained from The Educational Funding Authority (EFA). The grants received from the EFA and the associated expenditure is shown as restricted funds within the Statement of Financial Activities. The expenditure in the year of which a large part related to salary costs, has been used to advance the education of children attending the Academy. Expenditure has effectively supported the key objectives of the Academy Trust. The restricted fixed asset fund has arisen from the introduction of the leasehold buildings and land at fair value on conversion of the school to academy status. The fund is reduced by annual depreciation charges over the expected useful life of the assets concerned. The assets were used exclusively for providing education and the associated support services to the children of the Academy Trust. Reserves policy The Trustees review the reserve levels of the Academy Trust on a regular basis. The review includes the income and expenditure streams, the need to match income with commitments and the nature of any reserves. The governors have determined that a target of one months operational costs should be maintained when possible to ensure adequate working capital cover for delays between spending and the receipt of grant monies as well as to provide a cushion for unexpected emergencies such as urgent building maintenance. The Academy has 59,097 in the unrestricted fund as at 31 August This reserve has been generated over a number of years. The fund is freely available for its general purposes and has been held as an accumulating fund for major capital projects, additional training and resources. The Academy Trust s non teaching staff are entitled to enter the Local Government Pension Scheme. The Academy Trust s share of the scheme assets is currently assessed to be less than its share of the scheme liabilities and consequently the Academy Trusts s balance sheet shows a significant liability in this respect. However, the deficit does not mean that an immediate liability is about to manifest. The contribution rate to reduce this deficit is calculated by an independent actuary and will be paid over a period of time via additional pension contributions as part of a longer term deficit reduction plan. Investment policy and powers There are no material investments held by the Academy Trust. Cash balances are invested in such a way that the cash is readily accessible whilst a small return has been generated by way of interest earned. The Trustees are satisfies with the interest earned on the cash balances in the year

11 TRUSTEES' REPORT (CONTINUED) Principal risks and uncertainties Governors have considered the principle risks and uncertainties that the Academy Trust may be exposed to and, in particular, those related to the operation and finance of the Academy Trust and are satisfied that systems are in place to mitigate any exposure to major risks. Policies and controls have been designed so that these risks can be quickly identified, allowing the Academy Trust to respond swiftly in order to eliminate them. The Trustees have identified the principal risks as being loss of key staff and trustees, inadequate funding, the building project not completed, and poor academic outcomes and a poor OFSTED Inspection. Plans for future periods The Academy Trust will continue to strive to improve the performance of its pupils at all levels and will continue its efforts to ensure its pupils get the best start to their educational career. To continue to develop the school premises, particularly improving the areas of the existing school which will remain as a result of the expansion to 3 form entry which commenced in July Auditor In so far as the trustees are aware: there is no relevant audit information of which the charitable company's auditor is unaware; and the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. A resolution proposing that Carpenter Box be reappointed as auditor of the charitable company will be put to the members. The trustees' report, incorporating a strategic report, was approved by order of the board of trustees, as the company directors, on 11 December 2014 and signed on its behalf by: Mrs S Hawthorn Chair - 8 -

12 GOVERNANCE STATEMENT Scope of responsibility As trustees we acknowledge we have overall responsibility for ensuring that Downview 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 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 Downview 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 Statement of Trustees' Responsibilities. The board of trustees has formally met 7 times during the period. Attendance during the period at meetings of the board of trustees was as follows: Trustees Meetings attended Out of possible Mrs S Hawthorn (Chair) (Appointed 9 July 2013) 7 7 Mrs M Williams (Headteacher and accounting officer) (Appointed 9 July 2013) 7 7 Mrs M J Childs (Appointed 9 July 2013) 7 7 Mr A S Holland (Appointed 9 July 2013) 7 7 Mrs J E Lord (Appointed 9 July 2013) 7 7 Mr J N Martin (Staff) (Appointed 9 July 2013) 7 7 Mrs F McKenzie (Staff) (Appointed 9 July 2013) 6 7 Mrs V M Morris (Appointed 9 July 2013) 7 7 Mr P Nicholas (Appointed 9 July 2013) 7 7 Mr C J Pacey (Appointed 9 July 2013) 6 7 Mrs J Twine (Staff) (Appointed 9 July 2013) 7 7 The curriculum committee is a sub-committee of the main board of trustees. Its purpose is to: Assisting and advising the Governing Body on all matters relating to the provision of a sound curriculum that is consistent with national curriculum policy and has regard to any West Sussex curriculum policy and to advise as necessary on the implication or change to Downview Primary. Attendance at meetings in the period was as follows: Trustees Meetings attended Out of possible Mrs S Hawthorn (Chair) (Appointed 9 July 2013) 4 4 Mrs M Williams (Headteacher and accounting officer) (Appointed 9 July 2013) 4 4 Mrs M J Childs (Appointed 9 July 2013) 3 4 Mr J N Martin (Staff) (Appointed 9 July 2013) 3 4 Mrs F McKenzie (Staff) (Appointed 9 July 2013) 3 4 Mrs V M Morris (Appointed 9 July 2013)

13 GOVERNANCE STATEMENT (CONTINUED) The finance, audit and staffing committee is a sub-committee of the main board of trustees. Its purpose is to: Assisting and advising the Governing Body on all financial matters including the monitoring of those delegated to the headteacher. Attendance at meetings in the period was as follows: Trustees Meetings attended Out of possible Mrs S Hawthorn (Chair) (Appointed 9 July 2013) 4 4 Mrs M Williams (Headteacher and accounting officer) (Appointed 9 July 2013) 4 4 Mrs J E Lord (Appointed 9 July 2013) 2 4 Mr J N Martin (Staff) (Appointed 9 July 2013) 4 4 Mrs V M Morris (Appointed 9 July 2013) 4 4 Mr C J Pacey (Appointed 9 July 2013) 1 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 on-going process designed to identify and prioritise the risks to the achievement of academy trust policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically. The system of internal control has been in place in Downview Trust for the period 9 July 2013 to 31 August 2014 and up to the date of approval of the annual report and accounts. Capacity to handle risk The board of trustees has reviewed the key risks to which the Academy Trust is exposed together with the operating, financial and compliance controls that have been implemented to mitigate those risks. The board of trustees is of the view that there is a formal ongoing process for identifying, evaluating and managing the Academy Trust's significant risks that has been in place for the period 9 July 2013 to 31 August 2014 and up to the date of approval of the annual report and accounts. This process is regularly reviewed by the board of trustees. The risk and control framework The Academy Trust's system of internal financial control is based on a framework of regular management information and administrative procedures including the segregation of duties and a system of delegation and accountability. In particular it includes: comprehensive budgeting and monitoring systems with an annual budget and periodic financial reports which are reviewed and agreed by the 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 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 governors have appointed a business manager of another local academy, as assurance officer with effect from September

14 GOVERNANCE STATEMENT (CONTINUED) The assurance officer's role includes giving advice on financial matters and performing a range of checks on the academy trust's financial systems. From September 2014, on a termly basis, the assurance officer will report to the board of trustees on the operation of the systems of control and on the discharge of the financial responsibilities of the board of trustees. During the period under review the external auditors performed a review of the internal controls of the school and reported their findings to the board of trustees. The external auditors have delivered their schedule of work as planned and provided details of any material control issues arising as a result of their work. Review of effectiveness As accounting officer the Headteacher has responsibility for reviewing the effectiveness of the system of internal control. During the period in question the review has been informed by: The work of the Audit Committee; The work of the external auditor; The work of the School Business Manager within the Academy Trust who has 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 board of trustees on 11 December 2014 and signed on its behalf by: Mrs S Hawthorn Chair Mrs M Williams Headteacher and accounting officer

15 STATEMENT ON REGULARITY, PROPRIETY AND COMPLIANCE As accounting officer of Downview Trust I have considered my responsibility to notify the Academy Trust, board of trustees, and the Education Funding Agency of material irregularity, impropriety and noncompliance with EFA terms and conditions of funding, under the funding agreement in place between the Academy Trust and the Secretary of State. As part of my consideration I have had due regard to the requirements of the Academies Financial Handbook. I confirm that I and the Academy Trust's board of trustees are able to identify any material irregular or improper use of funds by the Academy Trust, or material non-compliance with the terms and conditions of funding under the Academy Trust's funding agreement and the Academies Financial Handbook. I confirm that no instances of material irregularity, impropriety or funding non-compliance have been discovered to date. If any instances are identified after the date of this statement, these will be notified to the board of trustees and EFA. Approved on 11 December 2014 and signed by: Mrs M Williams Accounting Officer

16 STATEMENT OF TRUSTEES' RESPONSIBILITIES The trustees (who also act as governors for Downview Trust and are also the directors of the charitable company for the purposes of company law) are responsible for preparing the Trustees' Report and the accounts 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 accounts for each financial year. Under company law the trustees must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these accounts, the trustees are required to: select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charities SORP; make judgements 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 accounts; and prepare the accounts 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 accounts 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 that grants received from the EFA/DfE have been applied for the purposes intended. The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of accounts may differ from legislation in other jurisdictions. Approved by order of the board of trustees on 11 December 2014 and signed on its behalf by: Mrs S Hawthorn Chair

17 INDEPENDENT AUDITOR'S REPORT TO THE BOARD OF TRUSTEES OF We have audited the accounts of Downview Trust for the period 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 and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and the Academies Accounts Direction 2013 to 2014 issued by the EFA. This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of trustees and auditors As explained more fully in the Trustees' Responsibilities Statement set out on page 13, the trustees, who are also the directors of Downview Trust for the purposes of company law, are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the accounts 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 accounts A description of the scope of an audit of financial statements is provided on the APB's website at Opinion on accounts In our opinion the accounts: give a true and fair view of the state of the charitable company's affairs as at 31 August 2014 and of its incoming resources and application of resources, including its income and expenditure, for the period then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, and in accordance with the requirements of the Companies Act 2006; and have been prepared in accordance with the Academies Accounts Direction 2013 to 2014 issued by the EFA. Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the Trustees' Report for the financial period for which the accounts are prepared is consistent with the accounts. 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 accounts 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. Robin Evans BA FCA CTA (Senior Statutory Auditor) Dated: 11 December 2014 Carpenter Box Chartered Accountants and Statutory Auditor Worthing

18 INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO AND THE EDUCATION FUNDING AGENCY In accordance with the terms of our engagement letter dated 27 June 2014 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 Downview Trust during the period 9 July 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 Downview Trust and the EFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to the Downview 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 the Downview Trust and the EFA, for our work, for this report, or for the conclusion we have formed. Respective responsibilities of Downview Trust's accounting officer and the reporting accountant The accounting officer is responsible, under the requirements of Downview Trust s funding agreement with the Secretary of State for Education dated 19 August 2013 and the Academies Financial Handbook, extant from 1 September 2013, for ensuring that expenditure disbursed and income received is applied for the purposes intended by Parliament and the financial transactions conform to the authorities which govern them. Our responsibilities for this engagement are established in the United Kingdom by our profession s ethical guidance and are to obtain limited assurance and report in accordance with our engagement letter and the requirements of the Academies Accounts Direction 2013 to We report to you whether anything has come to our attention in carrying out our work which suggests that in all material respects, expenditure disbursed and income received during the period 9 July 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 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 academy trust's income and expenditure. The work undertaken to draw to our conclusion includes: reviewing authorisation procedures and controls to ensure their adequacy and that they are being adhered to reviewing and assessing the appropriateness of delegation levels testing expenditure to ensure that it is being incurred for the benefit and in the best interests of the academy trust testing expenditure to ensure it is appropriate and properly authorised reviewing expenditure to assess whether it is an efficient and effective use of resources reviewing expenditure for necessity

19 INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO AND THE EDUCATION FUNDING AGENCY (CONTINUED) Conclusion In the course of our work, nothing has come to our attention which suggests that in all material respects the expenditure disbursed and income received during the period 9 July 2013 to 31 August 2014 has not been applied to purposes intended by Parliament and the financial transactions do not conform to the authorities which govern them. Robin Evans BA FCA CTA Reporting Accountant Carpenter Box Amelia House Crescent Road Worthing West Sussex BN11 1QR Dated: 11 December

20 STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT Unrestricted Restricted Fixed Asset Total funds funds fund 2014 Incoming resources Notes Resources from generated funds - Voluntary income 2 15, ,102 - Inherited on conversion 23 75,505 (66,616) 3,705,875 3,714,764 - Activities for generating funds 3 18,497 48,218-66,715 - Investment income Resources from charitable activities - Funding for educational operations 5-1,574,212 9,768 1,583,980 Total incoming resources 109,119 1,555,814 3,715,643 5,380,576 Resources expended Costs of generating funds Charitable activities - Educational operations 7 46,752 1,553,475 39,369 1,639,596 Governance costs 8 3,270 34,629-37,899 Total resources expended 6 50,022 1,588,104 39,369 1,677,495 Net incoming/(outgoing) resources before transfers 59,097 (32,290) 3,676,274 3,703,081 Gross transfers between funds Net income/(expenditure) for the period 59,097 (32,290) 3,676,274 3,703,081 Other recognised gains and losses Actuarial gains/(losses) on defined benefit pension scheme 17 - (53,000) - (53,000) Net movement in funds 59,097 (85,290) 3,676,274 3,650,081 Fund balances at 9 July Fund balances at 31 August ,097 (85,290) 3,676,274 3,650,081 The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act A statement of total recognised gains and losses is not required as all gains and losses are included in the statement of financial activities. All of the academy's activities derive from continuing operations during the financial period above

21 BALANCE SHEET AS AT 31 AUGUST Notes Fixed assets Tangible assets 11 3,661,922 Current assets Debtors 12 67,675 Cash at bank and in hand 217, ,702 Creditors: amounts falling due within one year 13 (171,543) Net current assets 113,159 Total assets less current liabilities 3,775,081 Defined benefit pension liability 17 (125,000) Net assets 3,650,081 Funds of the academy trust: Restricted income funds 15 - Fixed asset funds 3,676,274 - General funds 39,710 - Pension reserve (125,000) Total restricted funds 3,590,984 Unrestricted funds 15 59,097 Total funds 3,650,081 The accounts were approved by order of the board of trustees and authorised for issue on 11 December Mrs S Hawthorn Chair Company Number

22 CASH FLOW STATEMENT 31 August 2014 Notes Net cash inflow/(outflow) from operating activities ,771 Cash funds transferred on conversion 87,513 Returns on investments and servicing of finance Investment income 15 Net cash inflow/(outflow) from returns on investments and servicing of finance 15 Capital expenditure and financial investments Capital grants received 9,768 Payments to acquire tangible fixed assets (4,040) 211,299 Net cash flow from capital activities 5,728 Increase/(decrease) in cash ,

23 NOTES TO THE FINANCIAL STATEMENTS 1 Accounting policies 1.1 Basis of preparation The accounts have been prepared under the historical cost convention in accordance with applicable United Kingdom Accounting Standards, the Charity Commission 'Statement of Recommended Practice: Accounting and Reporting by Charities' ('SORP 2005'), the Academies Accounts Direction issued by the Education Funding Agency and the Companies Act A summary of the principal accounting policies, which have been applied consistently, except where noted, is set out below. 1.2 Going concern The trustees assess whether the use of going concern is appropriate, i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the company to continue as a going concern. The trustees make this assessment in respect of a period of one year from the date of approval of the accounts. 1.3 Incoming resources All incoming resources are recognised when the Academy Trust has entitlement to the funds, certainty of receipt and the amount can be measured with sufficient reliability. Grants receivable Grants are included in the statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the balance sheet. 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 period 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. Sponsorship income Sponsorship income provided to the Academy Trust 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 the value of the donation is measurable. Donations Donations are recognised on a receivable basis where there is certainty of receipt and the amount can be reliably measured. Other income Other income, including the hire of facilities, is recognised in the period it is receivable and to the extent the goods have been provided or on completion of the service

24 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 1 Accounting policies (Continued) Donated services and gifts in kind The value of donated services and gifts in kind provided to the Academy Trust are recognised at their open market value in the period in which they are receivable as incoming resources, where the benefit to the Academy Trust 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 Trust's policies. The conversion from a state maintained school to an Academy Trust involved the transfer of identifiable assets and liabilities and the operation of the school for nil consideration and has been accounted for under the acquisition accounting method. The assets and liabilities transferred on conversion from Downview Primary School to an Academy Trust have been valued at their fair value being a reasonable estimate of the current market value that the trustees would expect to pay in an open market for an equivalent item. Their fair value is in accordance with the accounting policies set out for Downview Trust. The amounts have been recognised under the appropriate balance sheet categories, with a corresponding amount recognised in voluntary income as net income in the Statement of Financial Activities and analysed under unrestricted funds, restricted general funds and restricted fixed asset funds. Further details of the transaction are set out in note Resources expended All 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 These are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds. Charitable activities These are costs incurred on the Academy Trust's educational operations. Governance costs These include the costs attributable to the Academy Trust'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. 1.5 Tangible fixed assets and depreciation Assets costing 3,000 or more are capitalised as tangible fixed assets and are carried at cost, net of depreciation and any provision for impairment. Where tangible fixed assets have been acquired with the aid of specific grants, either from the government or from the private sector, they are included in the balance sheet at cost and depreciated over their expected useful economic life. The related grants are credited to a restricted fixed asset fund in the statement of financial activities and carried forward in the balance sheet. Depreciation on such assets is charged to the restricted fixed asset fund in the statement of financial activities so as to reduce the fund over the useful economic life of the related asset on a basis consistent with the academy trust's depreciation policy. Where tangible fixed assets have been acquired with unrestricted funds, depreciation on such assets is charged to the unrestricted fund