GSSC ACADEMY TRUST (A COMPANY LIMITED BY GUARANTEE) ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2017

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1 Company Registration No (England and Wales) (A COMPANY LIMITED BY GUARANTEE) ANNUAL REPORT AND FINANCIAL STATEMENTS

2 ft* CONTENTS Page Reference and administrative details 1 Governors' report 2-8 Governance statement 9-10 Statement on regularity, propriety and compliance 11 Statement of Governors' responsibilities 12 Independent auditor's report on the accounts Independent reporting accountant's report on regularity Statement of financial activities including income and expenditure account Balance sheet 19 Statement of cash flows 20 Notes to the accounts including accounting policies 21-37

3 <s> REFERENCE AND ADMINISTRATIVE DETAILS Governors Mrs C Chaplin (Chair) Ms LAtack (Head Teacher) Mrs S Stubbs Mr S Jackson (Appointed 3 October 2016) Mrs D Perry (Appointed 3 October 2016) Ms V J Fowler (Appointed 24 April 2017) Mrs M Daniels (Resigned 25 September 2017) Mrs J Brand (Resigned 24 April 2017) Mrs A Wakeling (Resigned 10 February 2017) Members Mrs C Chaplin Mr S Jackson (From 3 October 2016) Ms V J Fowler (From 3 November 2017) Mrs M Daniels (Up to 25 September 2017) Mrs J Brand (Up to 24 April 2017) Senior management team - Head Teacher Ms LAtack - Deputy Head Teacher Mrs T Phillips - Assistant Head Teacher Mr M Tebbutt -Assistant Head Teacher Mrs H Blight - Assistant Head Teacher Ms C Frogley - School Business & Resource Manager Mr T Hollowell Company secretary Mr T Hollowell Company registration number (England and Wales) Registered office Greenfields Specialist School for Communication Prentice Court Northampton Northamptonshire NN38XS United Kingdom Independent auditor Ellacotts LLP Vantage House 2700 Kettering Parkway Kettering Venture Park Kettering Northamptonshire NN15 6XR -1 -

4 cu GOVERNORS' REPORT The Governors present their annua! report, together with the audited financial statements of the academy trust, for the year ended 31 August The annual report serves the purposes of both a trustees' report, and a directors' report under company law. GSSC Academy Trust (referred in the accounts as the Academy Trust or GSSC Academy) operates an academy for pupils, aged 11 to 18, serving a catchment area in Northampton. It has a pupil capacity of 90 and had a pupil roll of 90. Structure, governance and management Constitution The Academy Trust is a company limited by guarantee and an exempt charity. The Charitable Company's memorandum and articles of association are the primary governing documents of the Academy Trust. GSSC Academy Trust was incorporated on 19 November 2014 and Greenfields School and Sports College converted to academy status on 1 February The Governors are the trustees of GSSC Academy and are also the directors of the Charitable Company for the purposes of company law. Details of the Governors 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. Governors' indemnities In accordance with article 5 of the Charitable Company's Articles of Association third party indemnity provision is in place through the DFE's risk protection arrangement (RPA) programme to the value of 10,000,000 for any one claim and in the aggregate in any one period. The PFI provider is responsible for the school premises indemnities. Method of recruitment and appointment or election of Governors In accordance with articles 48 and 49 of the Charitable Company's Articles of Association, the Academy Trust shall have the following Governors: The Membership shall comprise of up to 12 Governors from the following: The Head Teacher; No less than 2, but no more than 3 Parent Governors; 2 Staff Governors; Up to 4 Governors appointed by the Governing Board; Up to 2 Associate members; and Such others as the Directors decide to invite for advice The Academy Trust may also have any Co-opted Governor appointed. Their fixed term may be less than 4 years. Governors may be appointed by the Secretary of State, if deemed fit. Policies and procedures adopted for the induction and training of Governors New Governors are issued with a handbook which includes Terms of Reference for all the committees, a description of the role of a Governor and code of conduct. Governors will also receive a copy of the Academy Funding Agreement, the Articles of Association, and timetable of meetings and copies of all policy documents. It is recommended that new Governors attend training within 6 months of appointment. -2-

5 Cet GOVERNORS' REPORT (CONTINUED) Organisational structure The structure of the Academy consists of three senior levels: The Governing Board The Head Teacher The Senior Leadership Team (SLT), which includes the Head Teacher, Deputy Head Teacher, Assistant Head Teachers and the School Business & Resource Manager The aim of this management structure is to distribute responsibility and accountability and to encourage involvement in decision making at all levels, so that the Academy nurtures the talents of its entire staff to support continual improvement and excellence. The Governing Board is responsible for setting the Academy's policies and approving the annual budget and medium term plan, monitoring performance against these plans and making major decisions about the direction of the Academy including its curriculum, the achievement and welfare of the students and personnel. The Head Teacher and SLT control the Academy at an executive level, implementing the policies set by the Governing Board and reporting back to them. The Governing Board has established a Business Committee. The committee has its own Terms of Reference, detailing the responsibilities discharged to the committee, to the Head Teacher (the Accounting Officer) and to the SLT The terms of reference and meeting frequency for this committee is reviewed and approved by the Governing Board annually. The sub-committees of the Governing Board are: Business - Terry Hollowell (non-governor), Cathy Chaplin (Chair), Lisa Atack, (Headteacher) Tracy Phillips (non- Governor) and Claire Frogley (Non Governor) Curriculum - Michelle Daniels (Chair), Jane Brand, Cathy Chaplin and Tracy Phillips (non-governor) Pay Committee - Any three of the Governing Board (excluding any staff Governors) Governor Responsibilities Cathy Chaplin Jane Brand (Resigned 24 April 2017) Michelle Daniels Steve Jackson (Appointed 3 October 2016) Sara Stubbs Victoria Fowler (Appointed 24 April 2017) Donna Perry (Appointed 3 October 2016) Anne Wakeling (Resigned 10 February 2017) Child Protection/LAC Performance Management Behaviour Safeguarding Finance Pupil Premium Performance Management Safer Recruitment Medical SMSC Pupil Premium Health & Safety Fund Raising Governors CPD/ training & Skills Audit SMSC Safeguarding ICT Self Evaluation and Improvement Plan -3-

6 Ca GOVERNORS' REPORT (CONTINUED) All Curriculum Committee Members are responsible for teaching and learning. School policies - Each respective Governors' sub-committee. Arrangements for setting pay and remuneration of kev management personnel The key management personnel of the charity comprise the Trustees and the senior leadership team. The Trustees of the Academy Trust are not remunerated for their services as a Trustee. The aggregate remuneration and benefits of those key management personnel for services to the Academy Trust is disclosed in note 9 to the financial statements. The Trustees have continued to follow the statutory requirements for teachers' pay and conditions for maintained schools in England and Wales. Head Teacher, Deputy Head Teacher, Assistant Head Teacher and all teachers are paid based on the national pay structure. Decisions about teachers' pay progression are linked to performance. All pay awards to individuals takes account of performance. The Trustees continue to pay all support staff based on the local authority pay structure. Decisions about support staffs pay progression are linked to performance. All pay awards to individuals takes account of performance. Related parties and other connected charities and organisations The Academy is a strategic partner of the Fairfields Teaching School Alliance and works closely, sharing best practice, with a local mainstream primary school. The Academy also works closely with other special schools as part of the Northamptonshire Special School Heads Group. Post 16 are part of the Special School Consortium, working with a range of special schools within the county to offer accreditation and the opportunity of working with a range of peers, cross sector. The Academy holds the contract through the Local Authority to provide AAC across county. As part of our work with other special schools and resource units, in Northamptonshire and beyond, the Academy co-chairs the Northamptonshire SEN Data Development Group and chairs the Moderation and Assessment Groups as part of the Data Development Group. The Academy has also formed a challenge partnership, with a local SEN Primary School, to support school improvement and pupil outcomes. The Academy has an organisation for parents, called the Friends of Greenfields. The organisation supports the school in raising funds, to support student outcomes. Objectives and activities Objects and aims As set out in the Articles of Association, the Academy Trust's objects are specifically restricted to the following: a. To advance for the public benefit education in the United Kingdom, in particular without prejudice to the generality of the foregoing by establishing, maintaining, carrying on, managing and developing a school specially organised to make special educational provision for pupils with Special Educational Needs offering a broad and balanced curriculum ("the Special Academy"). b. To promote for the benefit of the inhabitants of Northampton and the surrounding area, the provision of the facilities for recreation, or other leisure time occupation of individuals, who have need of such facilities, by reason of their youth, age, infirmity or disablement, financial hardship, or social economic circumstances for the public at large, in the interests of social welfare and the object of improving the condition of life of the said inhabitants. Our Curriculum objectives will strive to: 1. Give the students broad and balanced opportunities, to enhance their learning skills and to develop their independence. 2. Give the students the tools to learn, by underpinning the curriculum through a skills based holistic approach and individualized learning pathways. 3. Prepare the students for their next stages in the future. -4-

7 Cu GOVERNORS' REPORT (CONTINUED) Objectives, strategies and activities Ensure that performance information is secure and interventions are appropriately used, in order to enhance the learning experience for all students; To focus on life skills, personal development and welfare across the curriculum; Enhance the good teaching practices across the Academy, by establishing learning communities and links to other schools; Develop the student voice, through the use of MC and School council; Develop School to School support and sustainable School growth, through Teaching School's Alliance; Promote and reinforce British Values through: Democracy, The rule of law, Individual liberty, mutual respect and tolerance of those of different faiths and beliefs. Public benefit The Governing Board have complied with their duty to have due regard to the guidance on public benefit in exercising their powers and duties, as published by the Charity Commission. The key aim of the Governing Board, is the advancement of non-selective secondary education, through the provision of a broad curriculum, pastoral care and enrichment for the students at the Academy Trust. The public benefit of this provision is identifiable in the educational attainment of our students, as published on our website annually. Education at GSSC Academy Trust is open to all young people from 11 to 18 in the Northampton and surrounding area, regardless of race, gender, religion, sexual orientation, social class and ability. In accordance with Object 5j of our Articles of Association, the Governing Board actively promotes the use of our facilities, for the benefit of our local community. -5-

8 CU GOVERNORS' REPORT (CONTINUED) Strategic report Achievements and performance Using the school's internal data and professional judgement and contextual interpretation: The majority of students made expected, or better progress in all core subjects; and The majority of lessons were judged to be good, or outstanding. 100% of pupils remained within education at the end of KS4. Pupils supported by Pupil Premium, at least matched the progress of their peers. Looked After Children performed at least in line with their peers. Priorities for next year: All pupils have measurable short steps towards EHCP Outcomes Develop best practice in self and others in relation to promoting child protection and safeguarding across the school Pupils are tracked through a range of performance information including resilience for learning Continue to develop process of recording and tracking performance information in line with Rochford recommendations Key performance indicators The Governing Board has delegated financial management to the Business Committee. The committee meets a minimum of 5 times per year, to consider the school performance against budget, to approve the annual budget, to consider the medium term financial plan, to consider the external auditor quarterly reports, to consider financial developments, to oversee contracts and procurement and to review finance policies. The key performance indicators are: Staff costs, as a percentage of General Annual Grant (GAG) income; Monthly variances against budget; Revised outturn forecasts; Cash flow forecasts; Final outturn against projected outturn; and Restricted and unrestricted funds carried forward. Going concern After making appropriate enquiries, the board of trustees has a reasonable expectation that the Academy 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 accounting policies of the financial statements. -6-

9 CU GOVERNORS' REPORT (CONTINUED) Financial review The majority of the Academy's income was obtained from the Education Funding Agency (ESFA) in the form of the General Academies Grant, the use of which was restricted to particular purposes. The grant received from the ESFA during the period ended 31 August 2017 and the associated expenditure are shown as restricted funds in the Statement of Financial Activities. The Academy also brought forward part of the balance of its pre conversion funds from Northamptonshire County Council. Fixed assets in the form of fixtures and fittings and IT were also received on transfer from the Governors of the Greenfields School and Sports College and are shown in restricted income in the fixed asset fund. The restricted fixed asset fund balance is reduced by annual depreciation charges over the expected useful life of the assets concerned. During the year ended 31 August 2017, the net movement in funds for the year was 420,884, including depreciation charge and actuarial gain on the Local Government Pension Scheme of 496,000. At 31 August 2017 the net book value of tangible assets was 100,443. The assets were used exclusively for providing education and the associated support services to the pupils of the Academy. The Academy's non-teaching staff are entitled to membership of the Local Government Pension Scheme. The Academy's share of the Scheme assets is currently assessed to be less than its liabilities in the Scheme, and consequently the Academy balance shows a net liability position of 1,419,000. Reserves policy The Governing Board has deemed that the level of cash reserves should enable the Academy to continue its rolling programme of improvements and in particular at least ensure that wages and salary expenses can be met in full on a monthly basis. The Academy's level of free reserves (total funds less the amount held in fixed assets or pension reserve) as at 31 August 2017 was 661,804. Reserves are reviewed at least every 2 months by the School Business Committee and the School Business and Resource Manager. The policy is reviewed annually by the Governing Body. Due to the accounting rules for the Local Government Pension Scheme under Financial Reporting Standard 102, the Academy is recognising a significant pension fund deficit at 31 August 2017 of 1,419,000. This does not mean that an immediate liability for this amount crystallises and that such a deficit generally results in a cash flow effect in the form of increased employer contributions over a number of years. The Academy is currently making annual payments of 180,000 towards the deficit and it is envisaged that should this amount be increased it will be met from its budgeted annual income. The recognition of the deficit has no direct impact on the free reserves of the Academy trust. Investment policy and powers The Academy Trust banks with Lloyds Bank PLC. The Trust's investment policy is that any short, or longer term deposits are only held with Lloyds Bank, on which it earns interest. The Trust pays no bank charges. Principal risks and uncertainties The Academy maintains a Risk Register, that identifies the major risks, to which it is exposed, in particular those relating to Governance, finance, insurance, attainment attendance, behaviour, health and safety, organisation, operations, safeguarding, reputation, HR and ICT. The risk register is approved and monitored by the business committee, in consultation with the other Governing Board committees. The principal risks facing the Academy are detailed below. The Governing Board has implemented a number of systems, to assess and reduce risks that the Academy faces, especially in operational areas in relation to teaching, health and safety (including school trips), behaviour management, and in relation to the control of finances. They have introduced policies and systems for the recruitment, selection and vetting of new staff, continual professional development of staff, child protection, supervision of students around the Academy site and internal financial controls to minimise financial risk. Adequate insurance has been arranged, where significant financial risk remains. The Academy has an effective system of internal financial control, as outlined in the Governance Statement. -7-

10 GOVERNORS' REPORT (CONTINUED) The Governing Board assesses the principal risks facing the Academy Trust as follows: 1. Annual financial commitments, due to unpredictability of funding; 2. The Academy Trust experiences intermittent failure of electronic communications; 3. The Academy Trust loses expertise and knowledge through resignation of key staff, or extended absence from post; 4. The Academy Trust suffers loss of equipment due to burglary; and 5. The Academy Trust suffers significant loss of reputation, as result of physical, or emotional harm to a pupil. Plans for future periods The Academy wishes to develop its capital plan in line with the Risk Management and Academy Development Plan. Projects next year will include: Replace the main kitchen equipment and furniture, estimated cost to be 30,000. This will improve the catering provision for students; Replacing the two school mini buses within the next 2 years, estimated cost to be 80,000; Continuing to developing the use of our outdoor spaces; Developing areas for additional needs; Continuing to develop safeguarding training with non-education staff within our setting; and Continuing to improve security to the school site. Funds held as custodian trustee on behalf of others The School does not hold any funds, as Custodian Trustees, on behalf of other Charities. Auditor In so far as the Governors are aware: there is no relevant audit information, of which the Charitable Company's auditor is unaware; and the Governors 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 Ellacotts LLP be reappointed as auditors of the Charitable Company will be put to the members. The Governors' report, incorporating a strategic report, was approved by order of the Board of Governors, as the company directors, on..**.v.\sas7! and signed on its behalf by: -8-

11 Cu GOVERNANCE STATEMENT Scope of responsibility As Governors we acknowledge we have overall responsibility for ensuring that GSSC Academy 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 Board has delegated the day-to-day responsibility to the Head Teacher, 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 GSSC Academy and the Secretary of State for Education. They are also responsible for reporting to the Governing Board any material weaknesses or breakdowns in internal control. Governance The information on governance included here supplements that described in the Governors' Report and in the Statement of Governors' Responsibilities. The Governing Board has formally met 5 times during the year. Attendance during the year at meetings of the Governing Board was as follows: Governors Meetings attended Out of possible Mrs C Chaplin (Chair) 5 5 Ms LAtack (Head Teacher) 5 5 Mrs S Stubbs 4 5 Mr S Jackson (Appointed 3 October 2016) 5 5 Mrs D Perry (Appointed 3 October 2016) 5 5 Ms V J Fowler (Appointed 24 April 2017) 2 2 Mrs M Daniels (Resigned 25 September 2017) 4 5 Mrs J Brand (Resigned 24 April 2017) 2 3 MrsAWakeling (Resigned 10 February 2017) 1 3 Review of value for money The Governing Board is accountable for the way in which the Academy Trust's resources are allocated to meet the objectives set out in the Academy Trust's Development Plans. Governors are required to ensure value for money principals are followed which will maximise the funds available to secure the best possible outcomes for pupils. The Trust has internal controls in place to ensure strict financial procedures are followed. A Responsible Officer from accountancy firm Ellacotts LLP carries out quarterly independent checks. The management receives regular budget reports which are analysed to identify areas of overspend and underspend. Due to the complexities of Special school funding, budget forecasting can therefore be unpredictable. The Governing Board, with the support of the School Leadership Team, has continued to keep the staffing structure under review. 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 GSSC Academy Trust for the period 1 September 2016 to 31 August 2017 and up to the date of approval of the annual report and accounts. -9-

12 GOVERNANCE STATEMENT (CONTINUED) Capacity to handle risk The Governing Board 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 Board 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 1 September 2016 to 31 August 2017 and up to the date of approval of the annual report and accounts. This process is regularly reviewed by the Governing Board. 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 Board; regular reviews by the School Business 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 Governing Board has considered the need for a specific internal audit function and has decided not to appoint an internal auditor. However the Governors have appointed Ellacotts LLP, the external auditor, to perform additional checks. The external auditor'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 external auditor reports to the Governing Board through the School Business Committee on the operation of the systems of control and on the discharge of the financial responsibilities of the Governing Board. Review of effectiveness As accounting officer the Head Teacher has responsibility for reviewing the effectiveness of the system of internal control. During the year in question the review has been informed by: the additional program of work performed by the external auditor; and 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 School Business Committee and a plan to address weaknesses and ensure continuous improvement of the system is in place. During the year the Chair and Vice-Chair had prepared a plan to evaluate the governance through individual meetings and through the skills audit completed yearly. Approved by order of the Board of Governors on and signed on its behalf by: Ms LAtack Head Teacher -10-

13 STATEMENT OF REGULARITY, PROPRIETY AND COMPLIANCE As accounting officer of GSSC Academy Trust I have considered my responsibility to notify the Academy Trust Governing Board and the Education and Skills Funding Agency (ESFA) of material irregularity, impropriety and non-compliance with ESFA terms and conditions of funding, under the funding agreement in place between the Academy Trust and the Secretary of State for Education. 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 Governing Board 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 Governing Board and ESFA. Accounting Officer -11 -

14 STATEMENT OF GOVERNORS' RESPONSIBILITIES The Governors (who act as trustees for GSSC Academy Trust and are also the directors of GSSC Academy Trust for the purposes of company law) are responsible for preparing the Governors' Report and the accounts in accordance with the Annual Accounts Direction issued by the Education and Skills Funding Agency, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations. Company law requires the Governors to prepare accounts for each financial year. Under company law the Governors 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 Governors are required to: select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charities SORP 2015 and the Academies Accounts Direction 2016 to 2017; 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 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 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 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 that grants received from ESFA/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 accounts may differ from legislation in other jurisdictions. Approved by order of the Board of Governors on...^avst-vm and signed on its behalf by: Mrs C Chaplin Chair -12 -

15 (& INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF Opinion We have audited the accounts of GSSC Academy Trust for the year ended 31 August 2017 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the notes to the accounts, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice), the Charities SORP 2015 and the Academies Accounts Direction 2016 to 2017 issued by the Education and Skills Funding Agency. 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 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 charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. In our opinion the accounts: - give a true and fair view of the state of the charitable company's affairs as at 31 August 2017 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006; and - have been prepared in accordance with the Charities SORP 2015 and the Academies Accounts Direction 2016 to Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 'Auditor's responsibilities for the audit of the accounts' section of our report. We are independent of the Academy Trust in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: - the Governors' use of the going concern basis of accounting in the preparation of the accounts is not appropriate; or - the Governors have not disclosed in the accounts any identified material uncertainties that may cast significant doubt about the Academy Trust's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the accounts are authorised for issue. Other information The other information comprises the information included in the annual report, other than the accounts and our auditor's report thereon. The Governors are responsible for the other information. Our opinion on the accounts does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the accounts or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. -13-

16 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF (CONTINUED) Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of our audit: - the information given in the Governors' Report including the incorporated strategic report for the financial year for which the accounts are prepared is consistent with the accounts; and - the Governors' Report including the incorporated strategic report have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the Academy Trust and its environment obtained in the course of the audit, we have not identified material misstatements in the Governors' Report, including the incorporated strategic report. We have nothing to report in respect of the following matters in relation to which 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 Governors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit. Responsibilities of Governors As explained more fully in the Statement of Governors' Responsibilities, the Governors are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such internal control as the Governors determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error. In preparing the accounts, the Governors are responsible for assessing the Academy Trust's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Governors either intend to liquidate the charitable company, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these accounts. A further description of our responsibilities for the audit of the accounts is located on the Financial Reporting Council's website at: This description forms part of our auditor's report. David Stevens BA FCA (Senior Statutory Auditor) for and on behalf of Ellacotts LLP Chartered Accountants & Statutory Auditor Vantage House 2700 Kettering Parkway Kettering Venture Park, Kettering Northamptonshire NN15 6XR Dated: - 14-

17 Cu INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO AND THE EDUCATION AND SKILLS FUNDING AGENCY In accordance with the terms of our engagement letter dated 1 November 2017 and further to the requirements of the Education and Skills Funding Agency (ESFA) as included in the Academies Accounts Direction 2016 to 2017, we have carried out an engagement to obtain limited assurance about whether the expenditure disbursed and income received by GSSC Academy Trust during the period 1 September 2016 to 31 August 2017 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 GSSC Academy Trust and ESFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to the GSSC Academy Trust and ESFA 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 GSSC Academy Trust and ESFA, for our work, for this report, or for the conclusion we have formed. Respective responsibilities of GSSC Academy Trust's accounting officer and the reporting accountant The accounting officer is responsible, under the requirements of GSSC Academy Trust's funding agreement with the Secretary of State for Education dated 28 January 2015 and the Academies Financial Handbook, extant from 1 September 2016, 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 2016 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 1 September 2016 to 31 August 2017 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 2016 to 2017 issued by ESFA. 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. -15-

18 INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO AND THE EDUCATION AND SKILLS 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 1 September 2016 to 31 August 2017 has not been applied to purposes intended by Parliament and the financial transactions do not conform to the authorities which govern them. Reporting Accountant Ellacotts LLP Vantage House 2700 Kettering Parkway Kettering Venture Park, Kettering Northamptonshire NN15 6XR Dated:...f. 1 ^ -16-

19 Ca STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT Income and endowments from: Donations and capital grants Charitable activities: - Funding for educational operations Other trading activities Investments Notes Unrestricted Funds 504 Restricted funds: General Fixed asset 7,551 11,488 2,317,592 8,491 Total ,039 2,317,592 8, Total ,304 2,334,302 7, Total income and endowments 504 2,333,634 11,488 2,345,626 2,389,090 Expenditure on: Charitable activities: - Educational operations 8 2,362,491 58,251 2,420,742 2,411,372 Total expenditure 7-2,362,491 58,251 2,420,742 2,411,372 Net income/(expenditure) 504 (28,857) (46,763) (75,116) (22,282) Other recognised gains and losses Actuarial gains/(losses) on defined benefit pension schemes , ,000 (575,000) Net movement in funds ,143 (46,763) 420,884 (597,282) Reconciliation of funds Total funds brought forward 389,848 (1,614,691) 147,417 (1,077,426) (480,144) Total funds carried forward 390,352 (1,147,548) 100,654 (656,542) (1,077,426) -17-

20 Co STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT Comparative year information Year ended 31 August 2016 Unrestricted Restricted funds: Funds General Fixed asset Total 2016 Income and endowments from: Donations and capital grants Charitable activities: - Funding for educational operations Other trading activities Investments Notes ,238 2,334,302 7, ,066 46,304 2,334,302 7, Total income and endowments 775 2,381,249 7,066 2,389,090 Expenditure on: Charitable activities: - Educational operations - 2,352,700 58,672 2,411,372 Total expenditure 2,352,700 58,672 2,411,372 Net income/(expenditure) ,549 (51,606) (22,282) Transfers between funds - (72,570) 72,570 - Other recognised gains and losses Actuarial losses on defined benefit pension schemes 18 - (575,000) - (575,000) Net movement in funds 775 (619,021) 20,964 (597,282) Reconciliation of funds Total funds brought forward 389,073 (995,670) 126,453 (480,144) Total funds carried forward 389,848 (1,614,691) 147,417 (1,077,426) -18-

21 Ca BALANCE SHEET AS AT 31 AUGUST 2017 Notes Fixed assets Tangible assets , ,417 Current assets Debtors Cash at bank and in hand 13 22, ,963 28, , , ,826 Current liabilities Creditors: amounts falling due within one year 14 (190,022) (186,669) Net current assets 662, ,157 Net assets excluding pension liability 762, ,574 Defined benefit pension liability 18 (1,419,000) (1,783,000) Net liabilties (656,542) (1,077,426) Funds of the Academy Trust: Restricted funds - Fixed asset funds - Restricted income funds - Pension reserve , ,452 (1,419,000) 147, ,309 (1,783,000) Total restricted deficit (1,046,894) (1,467,274) Unrestricted income funds , ,848 Total deficit (656,542) (1,077,426) The accounts set out on pages 17 to 37 were approved by the Governing Board and authorised for issue on and are signed on its behalf by: 2^*v\ Mrs C Chaplin Chair Company Number

22 Ca STATEMENT OF CASH FLOWS Notes Cash flows from operating activities Net cash provided by operating activities , ,128 Cash flows from investing activities Dividends, interest and rents from investments Capital grants from DfE and ESFA 11,488 7,066 Payments to acquire tangible fixed assets (11,277) (82,498) 715 (74,657) Change in cash and cash equivalents in the reporting period 113,583 94,471 Cash and cash equivalents at 1 September , ,909 Cash and cash equivalents at 31 August , ,

23 (u NOTES TO THE FINANCIAL STATEMENTS 1 Accounting policies A summary of the principal accounting policies adopted (which have been applied consistently), judgements and key sources of estimation uncertainty, is set out below. 1.1 Basis of preparation The accounts of the Academy Trust, which is a public benefit entity under FRS 102, have been prepared under the historical cost convention in accordance with the Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102), the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)), the Academies Accounts Direction 2016 to 2017 issued by ESFA, the Charities Act 2011 and the Companies Act GSSC Academy Trust meets the definition of a public benefit entity under FRS 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 Academy Trust to continue as a going concern. The Governors make this assessment in respect of a period of one year from the date of approval of the accounts. The Academy Trust is showing a deficit on the balance sheet, due to a significant pension fund deficit from the Local Government Pension Scheme. This does not mean that an immediate liability crystallises and a pension deficit generally only results in a cash flow effect in the form of increased employer contributions over a number of years. The pension deficit has no direct impact on the free reserves of the Academy Trust and therefore the Board of Governors have a reasonable expectation that the Academy Trust has adequate resources to continue in operational existence for the foreseeable future. For this reason the Academy Trust continues to adopt the going concern basis in preparing the financial statements. 1.3 Income All incoming resources are recognised when the Academy Trust has entitlement to the funds, the receipt is probable and the amount can be measured reliably. 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 meeting any performance-related conditions there is not unconditional entitlement to the income and its recognition is deferred and included in creditors as deferred income until the performance-related conditions are met. Where entitlement occurs before income is received, the income is accrued. General Annual Grant is recognised in full in the statement of financial activities in the period for which it is receivable, and any abatement in respect of the period is deducted from income and recognised as a liability. Capital grants are recognised in full when there is an unconditional entitlement to the grant. Unspent amounts of capital grants are reflected in the balance sheet in the restricted fixed asset fund. Capital grants are recognised when there is entitlement and are not deferred over the life of the asset on which they are expended. 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 are no performancerelated conditions), where the receipt is probable and it can be measured reliably

24 Ca NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 1 Accounting policies (Continued) Donations Donations are recognised on a receivable basis (where there are no performance-related conditions) where the receipt is probable 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 Academy Trust has provided the goods or services. Donated goods, facilities and services Goods donated for resale are included at fair value, being the expected proceeds from sale less the expected costs of sale. If it is practical to assess the fair value at receipt, it is recognised in stock and 'Income from other trading activities'. Upon sale, the value of the stock is charged against 'Income from other trading activities' and the proceeds are recognised as 'Income from other trading activities'. Where it is impractical to fair value the items due to the volume of low value items they are not recognised in the financial statements until they are sold. This income is recognised within 'Income from other trading activities'. Where the donated good is a fixed asset it is measured at fair value, unless it is impractical to measure this reliably, in which case the cost of the item to the donor should be used. The gain is recognised as income from donations and a corresponding amount is included in the appropriate fixed asset category and depreciated over the useful economic life in accordance with the Academy Trust's accounting policies. 1.4 Expenditure Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset's use. All resources expended are inclusive of irrecoverable VAT. Expenditure on raising funds This includes all expenditure incurred by the Academy Trust to raise funds for its charitable purposes and includes costs of all fundraising activities, events and non-charitable trading. Charitable activities These are costs incurred on the Academy Trust's educational operations, including support costs and costs relating to the governance of the Academy Trust apportioned to charitable activities. -22-