Lampton School Academy Trust (A Company Limited by Guarantee) REPORT AND FINANCIAL STATEMENTS PERIOD ENDED 31 AUGUST 2011

Transcription

1 Lampton School Academy Trust (A Company Limited by Guarantee) REPORT AND FINANCIAL STATEMENTS PERIOD ENDED 31 AUGUST Company Limited by Guarantee Registration Number: (England and Wales)

2 CONTENTS Page Reference and administrative information 1 Governor s Report 2 Statement on Internal Control 8 Statement of Governors Responsibilities 10 Independent auditors' report 11 Statement of financial activities 13 Balance sheet 14 Cash flow statement 15 Principal accounting policies 16 Notes to the financial statements 18

3 REFERENCE AND ADMINISTRATIVE DETAILS OF THE ACADEMY, ITS GOVERNORS AND ADVISERS Governors (Directors) Susan John appointed Michael Sterne appointed Moira Stuart appointed Norman Lawrence appointed , resigned Governors (Non Directors) Sham Jassar Rajesh Shori Rachel Lane Edward Locke Jagjiwan Singh Milli Cowling Secretary Rajneesh Dhir Dee Scott Nicola Sharma Frank Wingate Rachel Lawrence Diane Cresswell Senior managers Head Teacher Associate Head Teacher Dame Susan John Jacqui Smith Registered Office Lampton School Lampton Avenue Hounslow TW3 4EP Company Registration Number Independent Auditors Wilkins Kennedy Greytown House 221/227 High Street Orpington Kent BR6 0NZ Bankers HSBC 127 High Street Hounslow TW3 1QP Solicitors Browne Jacobson LLP 44 Castle Gate Nottingham NG1 7BJ - 1 -

4 REPORT OF THE GOVERNORS 31 AUGUST The Governors present their report together with the financial statements and auditor s report of the charitable company for the period ended 31 August STRUCTURE, GOVERNANCE AND MANAGEMENT Constitution The Academy Trust is a company limited by guarantee with no share capital (registration no ) 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 Lampton School Academy Trust and are also Directors of the charitable company for the purposes of company law. The charitable company is known as Lampton School. Details of the governors who served throughout the period, except as noted, are included in the Reference and Administrative Details on page 1. Lampton School Academy Trust was incorporated on 13 August 2010 and obtained Academy status from 1 September Members liability Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up while he/she is a member, or within one period after he/she ceases to be a member, such amount as may be required, not exceeding 10, for the debts and liabilities contracted before he/she ceases to be a member. Principal Activities The principal 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 offering a broad and balanced curriculum. Method of Recruitment and Appointment or Election of Governors The members of the Academy Trust shall comprise no less than 3 persons, up to 25 persons appointed by the Governors, 1 person appointed by the Secretary of State, in the event that the Secretary of State appoints a person for this purpose, the Chairman of the Governors and any person appointed under Article 19. The number of Governors shall be not less than 3, but shall not be subject to a maximum. The first Governors shall be those named in the initial Memorandum. The Academy Trust shall have the following governors; up to 5 Governors; 1 LA Governor; a minimum of 5 parent governors; up to 3 Coopted Governors, a person who is appointed to be a governor by being co-opted by Governors who have not themselves been so appointed. The Governors may not co-opt an employee of the Academy Trust as a Co-opted Governor if the number of Governors who are employed by the Academy Trust would thereby exceed three; and the Principal. Each of the persons entitled to appoint members above shall have the right, from time to time by written notice delivered to the office, to remove any member appointed by them and to appoint a replacement member to fill a vacancy whether resulting from such removal or otherwise. The term of office for any governor shall be 4 years, save that this time limit shall not apply to the Principal. Subject to remaining eligible to be a particular type of Governor, and Governor may be reappointed or re-elected. During the period under review the Governors held 3 meetings. The training and induction provided for new Governors will depend on their existing experience. All new Governors will be given a tour of the Academy and the chance to meet with staff and students. All relevant Governors are provided with copies of policies, procedures, minutes, accounts, budgets, plans and other documents that they will need to undertake their role as Governors. As there are normally only two or three new Governors a period, induction tends to be done informally and is tailored specifically to the individual

5 REPORT OF THE GOVERNORS 31 AUGUST STRUCTURE, GOVERNANCE AND MANAGEMENT (continued) Organisational Structure The structure consists of three levels: the Governors, Senior Leadership Team and Heads of curriculum departments and Heads of Year. The aim of the management structure is to devolve responsibility and encourage involvement in decision making at all levels. The Governors 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 senior staff appointments. The Senior Leadership Team are the Headteacher, Associate Headteacher, Deputy Headteachers and Assistant Headteachers. These leaders control the Academy at an executive level implementing the policies laid down by the Governors and reporting back to them. As a group, the Senior Leadership Team are responsible for the authorisation of spending within agreed budgets and the appointment of staff, though appointment boards for middle and senior leader posts will contain a Governor (s). Some spending control is devolved to Heads of Departments/Years, with limits above which a Senior Leader must countersign. Risk management The Governors have assessed the major risks to which the Academy is exposed, in particular those relating to the specific teaching, provision of facilities and other operational areas of the Academy, and its finances. The Governors have implemented a number of systems to assess risks that the school faces, especially in the operational areas (e.g. in relation to teaching, health and safety, bullying and school trips) and in relation to the control of finance. The governors are introducing systems, including operational procedures internal financial controls in order to minimise risk. Where significant financial risk still remains they have ensured they have adequate insurance cover. The Academy has an effective system of internal financial controls and this is explained in more detail in the Statement of Internal Control on page 8. OBJECTIVES AND ACTIVITIES Objects, aims and objectives Lampton is a mixed comprehensive school which sees its rich cultural heritage as perhaps the most important of its many strengths. It is truly and international school. We foster a genuine sense of respect for the individual alongside an appreciation of the culture and beliefs of others. The principal object of the Academy is specifically restricted to the following, to advance 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 offering a broad and balanced curriculum being Lampton School Academy Trust. The main objectives of the Academy during the period ended 31 August are summarised below: to ensure that every child enjoys the same high quality education in terms of resourcing, tuition and care; to raise the standard of educational achievement of all pupils; to improve the effectiveness of the Academy by keeping the curriculum and organisational structure under continual review; to provide value for money for the funds expended; to comply with all appropriate statutory and curriculum requirements; to maintain close links with industry and commerce; and to conduct the Academy s business in accordance with the highest standards of integrity, probity and openness

6 REPORT OF THE GOVERNORS 31 AUGUST STRUCTURE, GOVERNANCE AND MANAGEMENT (continued) Strategies and activities The Lampton School community values diversity and seeks to give everyone in the school an equal chance to learn, work and live, free from the action, or fear, of racism, discrimination, or prejudice. By our actions we will work together to develop the potential of all pupils academically, socially, culturally and psychologically and to establish a community that is just and fair for all people who work at or visit Lampton School. Students will be happy and healthy, enthused by the intellectual, social and physical challenges posed by their experience at school. They will be independent learners, aware of how to learn and of the role of emotions and dispositions in the learning process, which they draw on to address challenge and difficulty, as well as success. All staff will have the opportunity to develop further as self-directed, reflective learners, through working collaboratively with others to enhance their own expertise. Through their passion, teachers will enthuse and inspire others to explore new ideas. Parents will fulfill their roles as true partners, recognizing their role in the student- school parent partnership to ensure that their child realizes his/her potential. Governors will contribute to the life of the school on a wider scale, acting as critical friends to support the school in becoming a nationally recognised centre of excellence. Equal opportunities policy The Governors recognise that equal opportunities should be an integral part of good practice within the workplace. The Academy aims to establish equal opportunity in all areas of its activities including creating a working environment in which the contribution and needs of all people are fully valued. Disabled persons The Academy complies fully with DDA regulations and is equipped to welcome and/or teach any child or adult with a disability. PUBLIC BENEFIT The Governors confirm that they have referred to the guidance contained in the Charity Commission s general guidance on Public Benefit when reviewing the charity s aim and objectives and in planning future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives they have set. ACHIEVEMENTS AND PERFORMANCE The Academy is in its first period of operation and continues to achieve the forecast numbers of students. Total students in the period ended 31 st August numbered 1412 and the Academy has a full complement in all period groups. In summer the academy gained an outstanding set of results in public examinations at both A level and GCSE. Students achievement is outstanding. From broadly average attainment on entry, students attain standards that are high by the end of KS4 and KS5. Progress from KS2-4 is outstanding and the school exceeds its targets with the exception of 70% 5 A*-C(E&M) where aspirational targets were narrowly missed. Students attainment is on a sharp incline and standards are improving year on year. The percentage of students gaining 5 or more grades at C and above has risen to 86% which is 6% more than last year

7 REPORT OF THE GOVERNORS 31 AUGUST ACHIEVEMENTS AND PERFORMANCE (continued) The school exceeds its FFTD targets and all groups of students achieve well with no major differences between girls and boys and different ethnic groups. The school has successfully closed the attainment gap between those pupils eligible for FSM and those not. In the pass rate for A level students was high 99.7%. 75% of grades being A* - C. Achievement in the 6 th form is outstanding as the 6 th form is totally inclusive in relation to access to students A level study which is made available to students who meet the 5 GCSE at C or above. The school has recognised that the percentage of students achieving A* at A2 level could be higher. Standards in KS4 in areas that have been underachieving are on an upward trend e.g. art and design, geography, A level chemistry, and physics are rising, which demonstrate the school s excellent capacity to improve. To ensure that standards are continually raised the Academy: operates a programme of internal and external reviews of curriculum areas and has an external quality assurance review as part of its membership of Challenge Partners. The Academy is a National Teaching School, one of only 100 in the country designated in September. The Academy was inspected by Ofsted in May 2008, gaining outstanding in all inspection areas, it received an outstanding HMI subject visit report in 2010 for History which was followed up by a good practice case study visit in. FINANCIAL REVIEW Financial report for the period Most of the Academy's income is obtained from the Young People s Learning Agency (YPLA) in the form of recurrent grants, some of which is restricted to particular purposes. The grants received from the YPLA during the period ended 31 August and the associated expenditure are shown as restricted funds in the Statement of Financial Activities. The Academy also receives grants for fixed assets from the YPLA. In accordance with the Charities Statement of Recommended Practice, Accounting and Reporting by Charities (SORP 2005), such grants are shown in the Statement of Financial Activities as restricted income in the fixed asset fund. The restricted fixed asset fund balance is reduced by annual depreciation charges over the expected useful life of the assets concerned. During the period ended 31 August, total expenditure of 9,889,000 was met by recurrent grant funding from the YPLA together with other incoming resources. The excess of expenditure over income for the period (excluding restricted fixed asset funds and transfers to restricted fixed asset funds) was 1,171,000. At 31 August the net book value of fixed assets was 22,449,000. Movements in tangible fixed assets are shown in note 13 to the financial statements. The assets were used exclusively for providing education and the associated support services to the pupils of the Academy. The London Borough of Hounslow Pension Fund, in which the Academy participates, showed a deficit of 1,348,000 at 31 August. Of this sum, 1,329,000 was inherited by Lampton School Academy Trust from the London Borough of Hounslow on 1 September 2010, the date the local authority s staff transferred to employment with the Academy. The statement of financial activities includes the assets and liabilities from the predecessor school, details of these can be found in Note 3 on page 19. Reserve policy and financial review Reserves policy The Governors 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 Governors have determined that the appropriate level of free reserves should be equivalent to four weeks expenditure, approximately 765,

8 REPORT OF THE GOVERNORS 31 AUGUST Reserves policy (continued) The reason for this is to provide sufficient working capital to cover delays between spending and receipt of grants and to provide a cushion to deal with unexpected emergencies such as urgent maintenance. The academy s current level of free reserves of 70,000 (total funds less the amount held in fixed assets and restricted funds) is much less than is needed. The Academy intends to make every effort to build up free reserves to the level needed. Investment policy Under the Memorandum and Articles of Association, the academy has the power to invest funds not immediately required for its own purposes, in any way the Governors see fit. The organisation has a positive cash balance to cover eventualities and unforeseen expenses. The banking facilities are reviewed on a regular basis. Financial position The Academy held fund balances at 31 August of 21,418,000 comprising 21,348,000 of restricted funds and 70,000 of unrestricted general funds. Of the restricted funds, 22,449,000 is represented by tangible fixed assets. The Pension reserve which is considered part of restricted funds was 1,348,000 in deficit. GOING CONCERN After making appropriate enquiries, the Governing Body has a reasonable expectation that the Academy Trust has adequate resources to continue in operational existence for the foreseeable future. For this reason, it continues to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Statement of Accounting Policies. PLANS FOR FUTURE PERIODS The Academy will continue striving to improve the levels of performance of its students at all levels and will continue its efforts to ensure its students get jobs or a place in higher education once they leave. The school has an outstanding understanding of its strengths and areas for development based on rigorous analysis of data and monitoring of teaching and learning. The school also makes good use of external validation to secure its judgement on the quality of provision and subsequent outcomes. The School Improvement Plan has all the correct areas identified for improvement and is based on regular analysis of data which is meticulously analysed by the headteacher and the senior leadership team. The SIP is regularly monitored and amended annually by the SLT and governors. It is underpinned by appropriate budget links School improvement strategies are highly effective because subjects identified as previously underperforming have been successfully addressed through a combination of rigorous monitoring, outstanding CPD, including coaching and thorough analysis of examination results. The school makes good provision for personalised learning, support and intervention programmes for individual students and the quality of provision for inclusion is outstanding due to bespoke programmes aimed at raising achievement. The strive for excellence is evident in many aspects of school life, but particularly in the strong culture of collaboration, openness and commitment to professional learning. Staff CPD is outstanding in the way that all staff work relentlessly at sharing best practice with schools and fulfil the school s moral imperative at improving the quality of learning both at a local, national and international level

9 REPORT OF THE GOVERNORS 31 AUGUST Information provided to auditors The Governors confirm that so far as they are aware, there is no relevant audit information of which the charitable company s auditors are unaware. They have taken all the steps that they ought to have taken as Governors in order to make themselves aware of any relevant audit information and to establish that the charitable company s auditors are aware of that information. AUDITORS The auditors, Wilkins Kennedy, are willing to continue in office and a resolution to appoint them will be proposed at the Annual General Meeting. The report of the Governors was approved by the Governors on.. and signed on their behalf by:... Moira Stuart Chair - 7 -

10 STATEMENT ON INTERNAL CONTROL Scope of Responsibility As governors, we acknowledge we have overall responsibility for ensuring that Lampton School Academy Trust has an effective and appropriate system of control, financial and otherwise. However such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives and can provide only reasonable and not absolute assurance against material misstatement or loss. The Governing Body has delegated the day-to-day responsibility to the Principal, as Accounting Officer, for ensuring financial controls conform with the requirements of both propriety and good financial management and in accordance with the requirements and responsibilities assigned to it in the funding agreement between Lampton School Academy Trust and the Secretary of State for Education. They are also responsible for reporting to the Governing Body any material weaknesses or breakdowns in internal control. 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 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 Lampton School Academy Trust for the period ended 31 August and up to the date of approval of the annual report and financial statements. Capacity to Handle Risk The Governing Body has reviewed the key risks to which the Academy Trust is exposed together with the operating, financial and compliance controls that have been implemented to mitigate those risks. The Governing Body is of the view that there is a formal ongoing process for identifying, evaluation and managing the Academy Trust s significant risks that has been in place for the period ending 31 August and up to the date of approval of the annual report and financial statements. This process is regularly reviewed by the Governing Body. The Risk and Control Framework The Academy Trust s system of internal financial control is based on a framework of regular management information and administrative procedures including the segregation of duties and a system of delegation and accountability. In particular, it includes:- comprehensive budgeting and monitoring systems with an annual budget and periodic financial reports which are reviewed and agreed by the Governing Body; regular reviews by the Finance and Premises 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

11 STATEMENT ON INTERNAL CONTROL (continued) The Governing body has considered the need for a specific internal audit function and has decided not to appoint an internal auditor. However, the governors have appointed Michael Sterne, a governor, as responsible Officer (RO). The RO s role includes giving advice on financial matters and performing a range of checks on the academy Trust s financial systems. On a quarterly basis, the RO reports to the Governing body on the operation of the systems of control and on the discharge of the governing Body s financial responsibilities. During the year the RO produced a number of draft reports, however due to ill health, none of these reports were ever presented to the Governors. The Governors are now seeking to appoint a new RO, but in the interim Wilkins Kennedy will be performing this function for the academy. Review of Effectiveness As Accounting Officer, (the Principal) 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 Responsible Officer the work of the external auditor; the financial management and governance self assessment process; the work of the executive managers within the Academy Trust who have responsibility for the development and maintenance of the internal control framework. The Accounting Officer has been advised of the implications of the result of their review of the system of internal control by the finance and General Purposes Committee and a plan to address weaknesses and ensure continuous improvement of the system is in place. Approved by order of the members of the Governing Body on by: and signed on its behalf. Moira Stuart Chair. Dame Susan John Accounting Officer - 9 -

12 INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF LAMPTON SCHOOL ACADEMY TRUST The governors (who act as trustees for charitable activities of Lampton School Academy Trust and are also the directors of the Charitable Company for the purposes of company law) are responsible for preparing the governors report and the financial statements in accordance with the Annual Accounts Requirements issued by the Young People s Learning Agency, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations. Company law requires the governors to prepare financial statements for each financial period. Under company law the governors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charitable Company and of its incoming resources and application of resources, including its income, and expenditure, for that period. In preparing these financial statements, the governors are required to:- select suitable accounting policies and they apply them consistently; observe the methods and principles in the Charities SORP; make judgements and estimated that are reasonable and prudent; state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charitable Company will continue in business. The governors 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 governors are responsible for ensuring that in its conduct and operation, the Charitable Company applies financial and other controls, which conform with the requirements both of propriety and of good financial management. They are also responsible for ensuring grants received from the YPLA/DfE have been applied for the purposes intended. The governors 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 Governing Body on by:- and signed on its behalf.. Moira Stuart Chair

13 INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF LAMPTON SCHOOL ACADEMY TRUST We have audited the financial statements of Lampton School Academy Trust for the period ended 31 August which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). This report is made solely to the academy's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act Our audit work has been undertaken so that we might state to the academy's members those matters we are required to state to them in an 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 and its members, as a body, for our audit work, for this report, or for the opinions we have formed. Respective Responsibilities of Governors and Auditor As explained more fully in the Governors Responsibilities Statement (set out on page 10), the governors (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 (APB 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 governors and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Governors Report to identify material inconsistencies with the audited financial statements. 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 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; have been prepared in accordance with the requirements of the Companies Act Opinion on Other Matter Prescribed by the Companies Act 2006 In our opinion, the information given in the Governors Report for the financial period for which the financial statements are prepared is consistent with the financial statements

14 INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF LAMPTON SCHOOL ACADEMY TRUST (continued) 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 governors remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit. Opinion on Other Matters Prescribed by the Academy s Funding Agreement with the Secretary of State for Education the financial statements have been prepared in accordance with the Financial Reporting and Annual Accounts Requirements issued by the Young People s Learning Agency in respect of the relevant financial period; proper accounting records have been kept; and grants made by the Young People s Learning Agency have been applied for the purposes intended. Michelle Wilkes (Senior Statutory Auditor) For and on behalf of Wilkins Kennedy, Statutory Auditor Greytown House High Street Orpington Kent BR6 0NZ Date:

15 STATEMENT OF FINANCIAL ACTIVITIES FOR THE PERIOD ENDED 31 AUGUST (INCLUDING Income and Expenditure Account and Statement of Total Recognised Gains and Losses) Restricted Restricted Unrestricted General Fixed Total Funds Funds Asset Funds Note Incoming resources Incoming resources from generated funds: - Voluntary income Assets/liabilities transferred from 3 - (1,760) 22,674 20,914 predecessor school - Activities for generating funds Incoming resources from charitable activities: - Funding for the Academy s educational operations , , Total incoming resources 523 7,886 22,917 31, Resources expended Charitable activities: Academy s educational operations , ,835 Governance costs Total resources expended , , Net incoming (outgoing) resources before other recognised gains and losses 70 (1,082) 22,449 21,437 Other recognised gains and losses Actuarial (losses)/gains on defined benefit pension schemes 20 - (19) - (19) Net movement in funds 70 (1,101) 22,449 21,418 Reconciliation of funds Total funds carried forward at 31 August 70 (1,101) 22,449 21,418 All income is derived from continuing activities. All recognised gains and losses are included in the Statement of Financial Activities

16 BALANCE SHEET AS AT 31 AUGUST COMPANY NUMBER: Notes Fixed assets Tangible assets 13 22, Total fixed assets 22,449 Current assets Debtors Cash at bank and in hand Total current assets Liabilities: Creditors: Amounts falling due within one year 15 (816) --- Net current assets Total assets less current liabilities 22,766 Net assets excluding pension liability 22,766 Pension scheme liability 20 1,348 - Net assets including pension liability 21,418 ======== Funds of the Academy: Restricted funds Fixed asset fund 16 22,449 Pension Fund (1,348) General fund , Unrestricted funds General fund Total unrestricted funds TOTAL FUNDS 21,418 ======== The financial statements on pages 13 to 30 were approved by the Governors and authorised for issue on and signed on their behalf by:.. Moira Stuart Chair.. Dame Susan John Accounting Officer

17 CASH FLOW STATEMENT FOR THE PERIOD ENDED 31 AUGUST Operating activities s RECEIPTS General Annual Grant (GAG) 8,417 Other receipts from Government 1,142 Other receipts , PAYMENTS Staff costs (7,047) Other cash payments (2,349) -- (9,396) -- Net cash inflow from operating activities Capital (expenditure)/income Capital grants from DCSF 250 Purchase of tangible fixed assets (243) Increase in cash Note ========== NOTE TO THE CASHFLOW STATEMENT 1 Analysis of changes in net funds At 1 September s Cash flows 000s At 31 August 000s Cash in hand and at bank ========= ====== =========

18 NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 AUGUST 1 ACCOUNTING POLICIES Basis of accounting The financial statements are prepared under the historical cost convention and 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 YPLA and the Companies Act Going Concern The governors 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 governors make this assessment in respect of a period of one period from the date of approval of the financial statements. Incoming resources Grants receivable Grants, where conditions have been met to establish entitlement, are included in the statement of financial activities on a receivable basis. Where grants are received but conditions establishing entitlement have not been met, these are deferred. The balance of income receivable for specific purposes but not expended during the period is shown in the relevant funds on the balance sheet. Donations Donations are included in the statement of financial activities on a cash received basis or on an accruals basis where they are assured with reasonable certainty and are receivable at the balance sheet date. Donated services and gifts in kind The value of donated services and gifts in kind provided to the Academy is recognised in the statement of financial activities as incoming resources and resources expended at their estimated value to the Academy in the period in which they are receivable, and where the benefit is both quantifiable and material. Where it has been ascertained that the risks and rewards of property subject to long lease agreements lie substantially with the Academy, a reasonable estimate of the gross value is included within fixed assets and, with an appropriate credit to voluntary income (gift in kind), within the restricted fixed asset fund. The valuation is at an estimation of depreciated replacement cost on the basis that the assets represent specialised property and the open market value for existing use is not readily available. Interest receivable Interest receivable is included within the statement of financial activities on a receivable basis. 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

19 NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 AUGUST contd... Resources expended (continued) Allocation of costs In accordance with the Charities SORP, expenditure has been analysed between the cost of generating funds, the Academy s charitable activities and governance. Items of expenditure which involve more than one cost category have been apportioned on a reasonable, justifiable and consistent basis for the cost category concerned. Central staff costs and depreciation are directly attributable to the one principle activity of the academy. Governance Costs Governance costs include the costs attributable to the Academy s compliance and constitutional and statutory requirements, including audit, strategic management and Governors meetings and reimbursed expenses. Such costs include both direct and allocated support costs. Fund accounting General funds represent those resources which may be used towards meeting any of the objects of the Academy at the discretion of the Governors. Restricted fixed asset funds are resources which are to be applied to specific capital purposes imposed by the YPLA and DfE where the asset acquired or created is held for a specific purpose. Restricted funds comprise all other restricted funds received and include grants from the YPLA and DfE. Tangible fixed assets Tangible fixed assets acquired since the Academy was established are included in the accounts at cost. Assets costing less than 5,000 are written off in the period of acquisition. All other assets are capitalised. 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). The depreciation on such assets is charged to the restricted fund in the statement of financial activities. Depreciation Depreciation is provided on a straight line basis on the cost of tangible fixed assets, to write them down to their estimated residual values over their expected useful lives. No depreciation is provided on freehold land. The principal annual rates used for other assets are: Buildings 2% Plant and vehicles 10% Furniture 10% ICT equipment 25% Science equipment 10% Assets in the course of construction are included at cost. Depreciation on these assets is not charged until they are brought into use. Leased assets Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the statement of financial activities on a straight line basis over the lease term

20 NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 AUGUST contd... Taxation The Academy Trust is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Academy Trust is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. Pensions The Academy s staff are members of one of two pension schemes, both of which are defined benefit schemes. More details of the schemes are disclosed in Note 19. Defined Benefit Schemes Teachers Pension Scheme Full-time and part-time teaching staff employed under a contract of service are eligible to contribute to the Teachers Pension Scheme (TPS). The TPS, a statutory, contributory, final salary scheme is administered by Capita Teachers Pensions on behalf of the Department for Children, Schools and Families. As the Academy is unable to identify its share of the underlying (notional) assets and liabilities of the scheme, Financial Reporting Standard (FRS) 17 requires that contributions to the scheme be accounted for as if it were a defined contribution scheme. The pension costs for the scheme represent the contributions payable by the Academy for the period. London Borough of Hounslow Pension Fund Non-teaching members of staff are offered membership of the London Borough of Hounslow Pension Fund (LBHPF). The LBHPF is a defined benefit pension scheme and is able to identify the Academy s share of assets and liabilities and the requirements of FRS 17, Retirement Benefits, have been followed. The Academy s share of the LBHPF assets are measured at fair value at each balance sheet date. Liabilities are measured on an actuarial basis using the projected unit method. The net of these two figures is recognised as an asset or liability on the balance sheet. Any movement in the asset or liability between balance sheet dates is reflected in the statement of financial activities. 2 GENERAL ANNUAL GRANT (GAG) s a. Results and Carry Forward for the Period GAG brought forward from previous period - GAG allocation for current period 7, Total GAG available to spend 7,697 Recurrent expenditure from GAG (7,697) Fixed assets purchased from GAG Other restricted GAG funds GAG carried forward to next period - ========== Maximum permitted GAG carry forward at end of current period (12% of allocation for current period) GAG to surrender to DfES (12% rule breached if result is positive) - ========== No breach

21 NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 AUGUST contd... 2 GENERAL ANNUAL GRANT (GAG) contd.. b. Use of GAG Brought Forward from Previous Period for Recurrent Purposes (Of the amount carried forward each period, a maximum of 2% of GAG can be used for recurrent purposes. Any balance, up to a maximum of 12%, can only be used for capital purposes) Recurrent expenditure from GAG in current period 7,697 GAG allocation for current period (7,697) GAG allocation for previous period x 2% GAG b/fwd from previous period in excess of 2%, used on recurrent expenditure in current period - (2% rule breached if result is positive) No breach 3. ASSETS TRANSFERRED FROM PREDECESSOR SCHOOL Unrestricted Restricted Funds Funds Total Pension fund deficit - (1,329) (1,329) Property valuation - 22,647 22,647 Other fixed assets Loss on schools budget - (431) (431) - 20,914 20,914 4 VOLUNTARY INCOME Unrestricted Funds Restricted Funds Total Trips Other donations ACTIVITIES FOR GENERATING FUNDS Unrestricted Funds Restricted Funds Total Hire of facilities Catering Income

22 NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 AUGUST contd... 6 FUNDING FOR ACADEMY S EDUCATIONAL OPERATIONS Unrestricted Funds Restricted Funds Total DfE/YPLA capital grant Devolved Formula Capital allocations DfE/YPLA revenue grants General Annual Grant (GAG)(note 2) - 7,697 7,697 Start Up Grants Other DfE Grants ,417 8,417 Other Government grants School Standards Funds NCSL Special educational projects TDA ,142 1,230 Private Sector sponsorship ,889 9,977 7 RESOURCES EXPENDED Staff Costs Non Pay Expenditure Premises Other Costs Total Academy s educational operations Direct costs 6, ,059 7,677 Allocated support costs ,098 7,047 1,250 1,478 9,775 Governance costs including allocated Support costs ,047 1,250 1,592 9,

23 NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 AUGUST contd... 8 CHARITABLE ACTIVITIES ACADEMY S EDUCATIONAL OPERATIONS Unrestricted Funds Restricted Funds Total Direct costs Teaching and educational support staff costs - 6,150 6,150 Depreciation Educational supplies Examination fees Staff development Other direct costs ,549 7,677 Allocated support costs Support staff costs Recruitment and support Maintenance of premises and Equipment Cleaning Rent and rates Insurance Catering Other support costs ,833 2,158 Total Costs 453 9,382 9,835 9 GOVERNANCE COSTS Legal and professional fees Audit of financial statements STAFF COSTS Total Staff costs during the period were:- - Wages and salaries 4,393 - Social security costs 1,795 - Other pension costs 784 6,972 Supply teacher costs 75 7,

24 NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 AUGUST contd STAFF COSTS (continued) The average number of persons (Including senior management team) employed by the Academy during the period expressed as full time equivalents was as follows:- No. Charitable Activities Teachers 98 Administration and support The number of employees whose emoluments fell within the following bands was:- No. 60, , ,001-80, , , During the period ended 31 August, pension contributions for teaching staff amounted to 569,059. The other employees participated in the Local Government Pension Scheme, pension contributions amounted to 214, GOVERNORS REMUNERATION AND EXPENSES Principal and staff governors only receive remuneration in respect of services they provide undertaking the roles of Principal and staff and not in respect of their services as governors. Other governors did not receive any payments, other than expenses, from the Academy in respect of their role as governors. Three Governors of the Academy are members of the teaching staff and received 218,263 in remuneration during the year. During the period ended 31 August, travel and subsistence expenses totalling 200 were reimbursed to a governor. Related party transactions involving the governors are set out in note GOVERNORS AND OFFICERS INSURANCE In accordance with normal commercial practice the Academy has purchased insurance to protect Governors and officers from claims arising from negligent acts, errors or omissions occurring whilst on Academy business. The insurance provides cover up to 2,000,000 on any one claim and the cost for the period ended 31 August 1,

25 NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 AUGUST contd TANGIBLE FIXED ASSETS Freehold Land and Buildings Assets under Construction Plant and Motor vehicles Furniture and fittings Total s s s Cost Additions Inherited Assets 22, , At 31 August 22, , Depreciation Charged in period At 31 August Net book values At 31 August 22, ,449 ========= ========= ========= ========= ======== 14 DEBTORS s Prepayments 63 Sundry debtors 28 Grant and other income 118 VAT recoverable CREDITORS: amounts falling due within one period s Taxation and social security 149 Other creditors 538 Accruals and deferred income

26 NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 AUGUST contd FUNDS Incoming Resources Resources Expended Balance at 31 August s s s Restricted general funds General annual grant GAG 7,697 (7,697) - Start Up Grant 25 (25) - Other DfE/YPLA grants 695 (695) - LEA and other grants 1,229 (551) 678 Predecessor school deficit transferred (431) - (431) 9,215 (8,968) 247 Restricted other funds Restricted fixed asset funds DfE/YPLA capital grants 243 (468) (225) Assets transferred from predecessor school 22,674-22,674 22,917 (468) 22,449 Pension reserve (1,329) (19) (1,348) Total restricted funds 30,803 (9,455) 21,348 Unrestricted funds Unrestricted funds 523 (453) 70 Total unrestricted funds 523 (453) 70 Total funds 31,326 (9,889) 21, ANALYSIS OF NET ASSETS BETWEEN FUNDS Unrestricted General Fund Restricted General Fund Restricted fixed asset fund Total Tangible fixed assets ,449 22,449 Current assets 70 1,063-1,133 Current liabilities - (816) - (816) Pension scheme liability - (1,348) - (1,348) 70 (1,101) 22,449 21,