IBSTOCK COMMUNITY COLLEGE ACADEMY TRUST

Transcription

1 Registered number: IBSTOCK COMMUNITY COLLEGE ACADEMY TRUST ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST

2 CONTENTS Page Reference and Administrative Details of the Academy, its Trustees and Advisers 1-2 Trustees' Report 3-11 Governance Statement Statement on Regularity, Propriety and Compliance 15 Trustees' Responsibilities Statement 16 Independent Auditors' Report Independent Reporting Accountant's Assurance Report on Regularity Statement of Financial Activities 21 Balance Sheet 22 Cash Flow Statement 23 Notes to the Financial Statements 24-45

3 REFERENCE AND ADMINISTRATIVE DETAILS OF THE ACADEMY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST Trustees Brian Davies (resigned 21 March ) 1,2 Daphne Robinson, Chair 2 Paul Hyde, Chair of Resources 1,2 Jonathan O'Farrell 2 John Kailofer, Vice Chair 2 Stephen Abbott-Capps (resigned 30 June ) 1 Sandra Crompton Sophie Williams 3 David King, Principal and Accounting Officer 4 Deanna Middleton 1 Louise Reeve 3 Virge Richichi 1 Janet Ward 1 Sylvia Tidy-Harris (appointed 27 June ) Daniel Wright (appointed 27 June ) 1 Members of Resources/Audit committee 2 Board Members 3 Staff Governor 4 Principal and Accounting Officer Company registered number Principal and registered office Central Avenue Ibstock Leicestershire LE67 6NE Company secretary Caroline Smithers Senior management team David King, Principal Stuart Kay, Vice Principal Lee Sheldon, Vice Principal Caroline Smithers, Business Manager Page 1

4 REFERENCE AND ADMINISTRATIVE DETAILS OF THE ACADEMY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST Advisers (continued) Independent auditors MHA MacIntyre Hudson Chartered Accountants Statutory Auditors Lyndale House Ervington Court Harcourt Way Meridian Business Park Leicester LE19 1WL Bankers Lloyds Bank 20 Belvoir Road Town Centre Coalville LE67 3QH Page 2

5 TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the audited financial statements of Ibstock Community College Academy Trust (the Academy) for the year ended 31 August. The Trustees confirm that the Annual Report and financial statements of the Academy comply with the current statutory requirements, the requirements of the Academy's governing document and the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" issued in March STRUCTURE, GOVERNANCE AND MANAGEMENT CONSTITUTION Ibstock Community College is a company limited by guarantee and an exempt charity. The charitable company's Memorandum and Articles of Association are the primary governing documents of the Academy. The principal activity of Ibstock Community College is to equip every student to maximize their potential for their future life by providing the highest quality twenty-first century learning for them so that they develop the skills, attitudes and behaviours which will make them academically, vocationally and personally fulfilled. Student outcomes, teaching, learning and student behaviour and safety have all improved significantly over the past three years. The college is a mixed comprehensive high school and community college, in a small rural former mining town, serving a wide rural catchment area. During the reporting period the principal activity has been to convert to academy status without any negative impact on students education, on staff effectiveness or on community users of the college facilities. A new governing body (board of trustees) has been formed and governors are aware of their responsibilities as both governors of the college and directors of the Academy trust. Overall governance has also been reviewed including the terms of reference for all the committees and sub-committees to ensure they reflect the needs of the DFE, the Companies Act 2006 and the Charities Commission. 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 The Companies Act 2006 s236 requires disclosure concerning qualifying third party indemnity provisions. Governors benefit from indemnity insurance to cover the liability of the Governors which by virtue of any rule of law would otherwise attach to them in respect of any negligence, default or breach of trust or breach of duty of which they may be guilty in relation to the Academy Trust. The cost of this insurance in the year was 1,380. PRINCIPAL ACTIVITIES The principal activity of Ibstock Community College is to equip every student to maximize their potential for their future life by providing the highest quality twenty-first century learning for them so that they develop the skills, attitudes and behaviours which will make them academically, vocationally and personally fulfilled. Student outcomes, teaching, learning and student behaviour and safety have all improved significantly over the past three years. The college is a mixed comprehensive high school and community college, in a small rural former mining town, serving a wide rural catchment area. Page 3

6 TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 AUGUST During the reporting period the principal activity has been to convert to academy status without any negative impact on students education, on staff effectiveness or on community users of the college facilities. A new governing body (board of trustees) has been formed and governors are aware of their responsibilities as both governors of the college and directors of the Academy trust. Overall governance has also been reviewed including the terms of reference for all the committees and sub-committees to ensure they reflect the needs of the DFE, the Companies Act 2006 and the Charities Commission. METHOD OF RECRUITMENT AND APPOINTMENT OR ELECTION OF TRUSTEES The management of the Academy is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles of Association. Recruitment of Governors is outlined in the Articles of Association. Members consist of the Chair and Vice Chair of Governors, Chair of the Curriculum and Pastoral Committee and Chair of the Resources Committee. Members can appoint up to eleven Governors, while three Community Governors can be appointed by the Governing Body chosen to provide balance and breadth of skills. There are also five elected Governors: two parent Governors, selected by parent ballot, and three staff Governors, appointed by staff ballot. In addition the principal is an ex officio Governor, and there is one Governor appointed by the Local Authority (Leicestershire County Council). The term of appointment, except for the Principal, is four years. POLICIES AND PROCEDURES ADOPTED FOR THE INDUCTION AND TRAINING OF TRUSTEES Governor s induction training alongside specialist training is available through the local network of schools to support all new and existing Governors. In partnership with all of the feeder primary schools, the Academy buys into the Local Authority Governor Development Service which offers governing bodies a wide range of support and training to develop governor s skills and knowledge to meet the needs of the Academy Trust. ORGANISATIONAL STRUCTURE The management structure within the academy has three levels: the Governing Body, the Senior Leadership Team and other Leadership Groups. The aim of the management structure is to devolve responsibility and encourage involvement in decision making at all levels. The Governing Body s role is, essentially, a strategic one. Acting on the advice of the Principal, the Governing Body sets aims and objectives for the college, adopts and monitors the college s strategic development plan and monitoring the academy s use of central government funding. Its responsibility also includes making major decisions about the direction of the Academy, capital expenditure and senior staff appointments. They also set the budget for the following year. To facilitate the working of the Governing body some of the functions are delegated to committees, the Principal and the Senior Leadership Team. The committees are Resources (includes Audit and Personnel subcommittees) and Curriculum and Pastoral. In 2012/13, the Senior Leadership Team consisted of the Principal (who is the Accounting Officer), two Vice Principals and the Business Manager (who is the Principal Finance Officer and Company Secretary). The Accounting Officer has overall executive responsibility for the financial management of the Charitable Company, Page 4

7 TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 AUGUST while the Principal Finance Officer assists in carrying out financial responsibilities. A system of financial control is in place to manage the process. The Principal, supported by the Senior Leadership Team, manages the college, implementing the strategic direction set by the governing body. Regular meetings are held to monitor and evaluate the work of the college. The college has a range of leadership groups at middle leader level to ensure consistent leadership and management across the college. RISK MANAGEMENT A thorough Risk Management Assessment has been conducted using guidelines provided by the EFA and has been approved by the Resources Committee. The Financial Regulations Manual, which provides detailed information on the academy s accounting procedures, ensures the Academy Trusts complies with the principles of financial control outlined in the EFA guidelines. The risk assessment involved identifying the types of risk the Academy faces, prioritising them into operational and financial impacts, accessing the likelihood of the occurrence and the impact that the occurrence will have on the Academy, putting in place controls to mitigate such risks. Whilst reviewed via the Resources Committee on an annual basis the Risk Register is a live document which will be is reviewed regularly with Governors and Management. Page 5

8 TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 AUGUST CONNECTED ORGANISATIONS, INCLUDING RELATED PARTY RELATIONSHIPS Ibstock Community College is a member of the ACE Partnership (the Ashby & Coalville Educational Partnership), comprising the six main secondary schools in Ashby, Coalville and Ibstock (11-14 high schools: Ibstock Community College, Ivanhoe College, Castle Rock High School, Newbridge High School; upper schools: Ashby School, King Edward VII Science and Sport College). The partnership was formed in 2011 and its main purpose is to improve learning outcomes and life chances for all secondary aged students attending our schools. The aims of the ACE partnership are: To support each young person to develop potential and thus raise aspirations and achievement across the region To create cost-effective, structured and coherent opportunities for schools to learn from one another and elsewhere and to work together including the open sharing of best practice in order to provide the best possible range of educational experiences for all To maximize the opportunity provided by any agreed pooled funding to help address local and national agendas through working collaboratively and enriching opportunities to learn. The six ACE head teachers meet regularly to ensure the shared vision and objectives are being embedded consistently across all six schools. The partnership work and the linked strategic plan are coordinated by a senior educational consultant who is employed part time by ACE. This collaborative approach filters down to senior leadership teams, who are increasingly working together on joint projects and via shared CPD sessions. The top priorities in the current ACE strategic plan are to create a virtual through school across the six schools, and to improve quality assurance across the partnership. At department / faculty level, middle leaders and subject teachers are working on joint projects which ensure the transition between schools are as smooth as possible to maximize learning potential, and fulfil the overarching purpose and aims of the partnership. Together with its eleven feeder primary schools, the college is part of a learning development group to improve teaching and learning for all learners across our catchment area, and to ensure that transition from primary to secondary education. Together with all of the ACE schools and most of the partnership s feeder primary schools, the college is also an active member of the Forest Way Teaching School Alliance, and makes extensive use of its programmes for training and development. The college is a member of the highly effective North West Leicestershire School Sports Partnership. In order to support vulnerable students, the college has effective links with social services, the Youth Service, the National Health Service, Leicestershire Police, the Youth Offending Team, Supporting Leicestershire Families. The college works closely with North West Leicestershire District Council and Leicestershire County Council across the wide range of extended services that the college offers. The nature of our work means that we develop many other partnerships in an ongoing manner to support relevant strands of our curriculum and provision. Page 6

9 TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 AUGUST OBJECTIVES AND ACTIVITIES As students, staff, parents and governors, our core values are expressed in our mission statement: Together, to learn and to grow to learn through ambition, listening and reflecting, to grow through responsibility, openness and nurturing, and to do this together as a caring supportive team. OBJECTIVES, STRATEGIES AND ACTIVITIES The college achieves its objectives by having high ambitions for all and a relentless drive at all levels to attain the highest achievement and personal development for all learners; by employing high calibre staff in all areas; by having high quality performance management; and by providing a wide range of appropriate professional development and training for staff. The college has set up three staff task groups charged with taking the college forward in key aspects of teaching, learning and behaviour. PUBLIC BENEFIT In setting objectives the governors have given careful consideration to the Charity Commission's general guidance on public benefit and in particular to its supplementary public benefit guidance on advancing education. ACHIEVEMENTS AND PERFORMANCE The standards achieved by Ibstock Community College s students have continued to improve significantly. In summer, 97% of Year 9 students reached level 5 or above in English and in science, and 98% in maths, i.e. between 13% and 15% above national figures for At level 6 or above, attainment was also well above.national standards for % of Pupil premium students obtained at least Level 5. Year 9 End of Year 9 (EOY) Level % EOY compared to national results 2012 (June ) % L5+ %L6+ %67+ English 97% 61% 15% Maths 97% 76% 42% Science 98% 70% 38% Progress continued to improve in. In core subjects (English, maths and science), year 9 students made average progress of levels from their performance at the end of primary school (year 6, end of Key Stage 2), compared to levels for year 9 students in In foundation subjects, progress improved to an average of levels from levels the previous year. These compare very favourably with government expectations of 1.5 levels of progress across Key Stage 3, i.e. from the end of Year 6 to the end of Year 9. The quality of teaching also continued to improve. At the time of the Ofsted inspection in March 2012, 29% of lessons were outstanding, 49% good, 16% satisfactory and 6% inadequate. By summer, 56% of teaching was outstanding and 44% good, with none satisfactory (requiring improvement). This was a result of continued staff development. Page 7

10 TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 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. KEY FINANCIAL PERFORMANCE INDICATORS The overall balance (revenue and capital) on conversion was 12,115,853 made up of the Local Authority deficit of 75,839.64, fixed assets of 12,894,610, school fund balance of 45,083 and the pension liability of 748,000. At the end of this period the deficit balance has been repaid. This has been achieved through efficiency savings in both teaching and non-teaching staff. Student numbers have decreased over the last two years and they are expected to decrease further to around 546 in September 2014 and 2015 before we see the numbers start to rise again. Pupil forecasts taken from demographic data provided by the Local Authority taking new housing into effect does improve on these figures. Whilst this reduction will result in a corresponding reduction in income, the predictable nature of this change will enable us to manage our expenditure pattern accordingly and therefore minimise any financial risk. We are also aware that Minimum Funding Guarantee is being withdrawn. Again, as this is known in advance, we are able to manage our expenditure through further efficiencies identified and build into our five year budget forecast in order to maintain spending which is within the constraints of our income. FINANCIAL REVIEW The majority of the Academy's income is obtained from the DFE in the form of recurrent grants, the use of which is restricted to particular purposes. The grants received from the DFE during the year ended 31 August and the associated expenditure are shown as restricted in the statement of financial activities. During the year ended 31 August, the total expenditure of 3,378,317 was more than covered by recurrent grant funding from the DFE together with the extended services income. The Academy provides a wide range of facilities and services to pupils of the college and feeder primary schools, and members of the community. The total income generated during the year ending 31 August was 3,646,066 and reported under note 3, Activities for Generating Funds. The excess of income over expenditure for the year (excluding all property transactions) was 267,749. Extended services income includes income from a college run leisure centre, nursery and general lettings. In addition several facilities are run by the Local Authority such as a library, SureStart and Adult Education which again provides additional income to the college. This income is offsetting the reduction in recurrent grants from the EFA. The number of students on roll used as the basis for our grant income in this period was 597 however; the actual number was 575. The EFA has advised the academy that as a result of this, that they are adjusting the school budget share and LACSEG for the academic year 2012/13 by 37, A provision has been made in the new financial year. A key objective of the Academy has been to review the suitability and age of the whole college s ICT; in particular computers used in the classrooms. In Design and Technology the computers were found to be beyond their economic life expectancy and have therefore been replaced. Pupil Premium funding received has allowed the Academy to provide in whole or in part interventions including Page 8

11 TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 AUGUST specific learning groups, additional mentoring and 1:1 working, early morning, lunchtimes, afterschool and holiday activities, and reduced class sizes. Full details can be found on the College s website. At 31 August the net book value of fixed assets was 12,624,903 and movements in tangible fixed assets are shown in note 12 to the financial statements. The assets were used exclusively for providing education and the associated extended and support services of the Academy. Capital funding received in July of 14,000 has been carried forward into the next financial year and will be utilised in accordance with the priorities set out in the Strategic Development Plan and with agreement from the Governing body. The pension scheme deficit brought forward on conversion is 748,000 although this is not payable immediately and does not pose any current liquidity problems. PRINCIPAL RISKS AND UNCERTAINTIES The principal risks facing the Academy are included in the Risk Register and Risk Management Policy and include: Strategic and Reputational Risks Operational Risks Compliance Risk Financial Risks Control measures are in place to manage the identified risks, the key risks being that of a deficit budget, reduced pupil numbers that affect the level of funding and future Government cuts. Active promotion of the Academy is maintained and budgets monitored carefully over a five year period to manage any reduction in funding. RESERVES POLICY The Academy Trust holds reserves totaling 296,269 at 31 August made up of 150,318 of restricted and 145,951 of unrestricted. The Academy aims to carry forward a prudent level of resources from the income received to cover the medium and long-term needs for renewal and replacement, for major unforeseen contingencies and to contribute to major capital developments. INVESTMENTS POLICY Governors are firmly committed to ensuring that all under their control are administered in such a way as to maximise return while minimising risk. The Academy manages its cash balances to provide for the day-to-day working operational requirements and longer term priorities, whilst protecting the real value of any surplus cash. The objective is to optimise returns, but also ensure that investments are such that there is no risk of loss to these and capital invested is protected against inflation. Regular cash flows are prepared and monitored to ensure that there are adequate liquid to meet all commitments. Where the cash flow identifies a base level of cash that will be surplus to requirements, these are invested in accordance with the governing body approved investment strategy. Investments made during the financial year include a Virgin Money account and short term treasury deposits with Lloyds bank. All interest and capital is repaid into the Academy s main school account. Page 9

12 TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 AUGUST PLANS FOR THE FUTURE This has been covered in Objects and aims above. The college continues to invest in making minor improvements to the buildings. The college is putting aside a proportion of the income from extended services activities in order to cover future capital requirements for these activities. FUTURE DEVELOPMENTS Strategic priorities for To ensure that the overall effectiveness of the college becomes and remains outstanding 2. To achieve high educational outcomes for young people in our catchment area by establishing an effective virtual school across the ACE partnership 3. To ensure the suitability and sustainability of the college s physical and financial infrastructure. Strategic objectives for To improve teaching and student achievement from good to outstanding by developing 21st century learners, (a) by ensuring that lessons consistently challenge students of all abilities, and (b) by providing effective and consistent marking and feedback in all subjects so that all students know what they need to do to improve to meet their targets (Task Groups 1 and 2). 2. To improve student behaviour and safety from good to outstanding by ensuring that suitable interventions are in place to support students in taking responsibility for their own learning and behaviour (TG 3). 3. To improve leadership and management from good to outstanding by improving planning and monitoring at all levels. 4. To continue to develop ICC staff at all levels through effective professional development, coaching and mentoring, distributed leadership and performance management. 5. Running through these priorities we must further improve our infrastructure and links through: (a) Continuing to develop a safe, stimulating and valued environment, (b) Continuing to develop efficient and effective systems,; (c) Continuing to develop partnerships with schools and with the community, (d) Continuing to reduce costs and increase income. Page 10

13 TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 AUGUST DISCLOSURE OF INFORMATION TO AUDITORS Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that: so far as that Trustee is aware, there is no relevant audit information of which the charitable company's auditors are unaware, and that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable company's auditors are aware of that information. This report was approved by order of the Board of Trustees on 10 December and signed on its behalf by:... Daphne Robinson Chair Page 11

14 GOVERNANCE STATEMENT SCOPE OF RESPONSIBILITY As Trustees, we acknowledge we have overall responsibility for ensuring that Ibstock Community College Academy Trust has an effective and appropriate system of control, financial and otherwise. However such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives, and can provide only reasonable and not absolute assurance against material misstatement or loss. The Board of Trustees has delegated the day-to-day responsibility to the Principal, 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 Ibstock Community College Academy Trust and the Secretary of State for Education. They are also responsible for reporting to the Board of Trustees any material weaknesses or breakdowns in internal control. GOVERNANCE The information on governance included here supplements that described in the Trustees' Report and in the Trustees' Responsibilities Statement. The Board of Trustees has formally met 4 times during the year. Attendance during the year at meetings of the Board of Trustees was as follows: Trustee Meetings attended Out of a possible Brian Davies, (Chair to 21 March ) 2 2 Daphne Robinson, Chair 4 4 Paul Hyde, (Chair of Resources) 3 4 Jonathan O'Farrell 4 4 John Kailofer, (Vice Chair from 27 June ) 2 4 Stephen Abbott-Capps, (resigned 30 June ) 1 4 Sandra Crompton 4 4 Sophie Williams, (staff trustee) 3 4 David King, Principal and Accounting Officer 4 4 Deanna Middleton 3 4 Louise Reeve, (staff trustee) 4 4 Virge Richichi 1 4 Janet Ward 3 4 Sylvia Tidy-Harris, (appointed 27 June ) 1 1 Daniel Wright, (appointed 27 June ) 1 1 Daphne Robinson succeeded Brian Davies resigned as Chair of Governors from 21 March and John Kailofer succeeded Daphne Robinson as Vice Chair from 27 June. The main challenges for the board during the year have been to ensure the correct operation of the Academy in its first year, particularly its financial procedures; to ensure the smooth change-over of the Chair of the Governing Body mid-year, and to establish the future vision of the College. These specific items were part of the key roles of the Governing Body of being the strategic lead for the College, acting as a critical friend and ensuring accountability. The Resources Committee is a sub-committee of the main Board of Trustees. Its purpose is to undertake financial monitoring and evaluation, ensure financial controls are in place and to monitor the staffing and physical resources of the College. The Committee has met 4 times during the year. Page 12

15 GOVERNANCE STATEMENT (continued) Attendance at meetings in the year was as follows: Trustee Meetings attended Out of a possible Paul Hyde (Chair) 1 4 John Kailofer (Vice Chair) 4 4 Louise Reeve 4 4 Brian Davies (resigned 21st March, ) 3 3 David King 4 4 Janet Ward 2 4 Stephen Abbott-Caps (resigned 30 June ) 0 4 Virge Riccichi 1 4 Deanna Middleton 2 4 Daphne Robinson (appointed March, ) 1 1 The major issues addressed during the course of the year have been the repercussions of the College s deficit budget situation, both with the Local Authority and on conversion to an academy, and ensuring that all financial aspects of the change-over to academy status have been properly managed and achieved. THE PURPOSE OF THE SYSTEM OF INTERNAL CONTROL The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk of failure to achieve policies, aims and objectives; it can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an ongoing process designed to identify and prioritise the risks to the achievement of Academy policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically. The system of internal control has been in place in Ibstock Community College Academy Trust for the year ended 31 August and up to the date of approval of the annual report and financial statements. CAPACITY TO HANDLE RISK The Board of Trustees has reviewed the key risks to which the Academy is exposed together with the operating, financial and compliance controls that have been implemented to mitigate those risks. The Board of Trustees is of the view that there is a formal ongoing process for identifying, evaluating and managing the Academy's significant risks, that has been in place for the year ended to 31 August and up to the date of approval of the annual report and financial statements. This process is regularly reviewed by the Board of Trustees. THE RISK AND CONTROL FRAMEWORK The Academy s system of internal financial control is based on a framework of regular management information and administrative procedures including the segregation of duties and a system of delegation and accountability. In particular, it includes: comprehensive budgeting and monitoring systems with an annual budget and periodic financial reports which are reviewed and agreed by the Board of Trustees; regular reviews by the Resources Committee of reports which indicate financial performance against the forecasts and of major purchase plans, capital works and expenditure programmes; setting targets to measure financial and other performance; clearly defined purchasing (asset purchase or capital investment) guidelines. delegation of authority and segregation of duties; identification and management of risks. The Board of Trustees has considered the need for a specific internal audit function and has decided to appoint Page 13

16 GOVERNANCE STATEMENT (continued) Leicestershire County Council (LCC) as internal auditor. Internal Audit Services to provide an independent oversight of the academy s financial affairs. The main assurance to be provided includes: the financial responsibilities of the governing body are being properly discharged; resources are being managed in an efficient, economical and effective manner; sound systems of internal financial control are being maintained and financial considerations are fully taken into account in reaching decisions. LCC Internal Audit Services will undertake a programme of activity (including audits) set out in a service level agreement. The internal auditor's role includes giving advice on financial matters and performing a range of checks on the Academy's financial systems. On an annual basis, the internal auditor reports to the Board of Trustees on the operation of the systems of control and on the discharge of the Board of Trustees' financial responsibilities. REVIEW OF EFFECTIVENESS As Accounting Officer, the Principal has responsibility for reviewing the effectiveness of the system of internal control. During the year in question the review has been informed by: the work of the internal auditor; the work of the external auditors; the financial management and governance self-assessment process; the work of the executive managers within the Academy who have responsibility for the development and maintenance of the internal control framework. The Accounting Officer has been advised of the implications of the result of their review of the system of internal control by the Resources Committee and a plan to address weaknesses and ensure continuous improvement of the system is in place. Approved by order of the members of the Board of Trustees on 10 December and signed on their behalf, by:... Daphne Robinson Chair of Trustees... David King Accounting Officer Page 14

17 STATEMENT ON REGULARITY, PROPRIETY AND COMPLIANCE As Accounting Officer of Ibstock Community College Academy Trust I have considered my responsibility to notify the Academy Board of Trustees and the Education Funding Agency of material irregularity, impropriety and noncompliance with EFA terms and conditions of funding, under the funding agreement in place between the Academy and the Secretary of State. As part of my consideration I have had due regard to the requirements of the Academies Financial Handbook (2012). I confirm that I and the Academy Board of Trustees are able to identify any material, irregular or improper use of by the Academy, or material non-compliance with the terms and conditions of funding under the Academy's funding agreement and the Academies Financial Handbook (2012). I confirm that no instances of material irregularity, impropriety or funding non-compliance have been discovered to date.... David King Accounting Officer 10 December Page 15

18 TRUSTEES' RESPONSIBILITIES STATEMENT FOR THE YEAR ENDED 31 AUGUST The Trustees (who act as governors of Ibstock Community College Academy Trust and are also the directors of the charitable company for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with the Annual Accounts Direction issued by the Education Funding Agency, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations. Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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 Trustees are required to: select suitable accounting policies and then apply them consistently; observe the methods and principles of the Charities SORP; make judgments and accounting estimates that are reasonable and prudent; state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for ensuring that in its conduct and operation the charitable company applies financial and other controls, which conform with the requirements both of propriety and of good financial management. They are also responsible for ensuring grants received from the EFA/DfE have been applied for the purposes intended. The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Approved by order of the members of the Board of Trustees on 10 December and signed on its behalf by:... Daphne Robinson Chair Page 16

19 INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF IBSTOCK COMMUNITY COLLEGE ACADEMY TRUST We have audited the financial statements of Ibstock Community College Academy Trust for the year 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, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and the Academies Accounts Direction issued by the Education Funding Agency. 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 opinion we have formed. RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND AUDITORS As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the Academy for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors. SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Academy's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Trustees; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Trustees' Report to identify material inconsistencies with the audited financial statements. 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 year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Companies Act 2006 and the Academies Accounts Direction issued by the Education Funding Agency. OPINION ON OTHER MATTER PRESCRIBED BY THE COMPANIES ACT 2006 In our opinion the information given in the Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements. Page 17

20 INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF IBSTOCK COMMUNITY COLLEGE ACADEMY TRUST MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or the financial statements are not in agreement with the accounting records and returns; or certain disclosures of Trustees' remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit. Robert A Nelson BA FCA DChA (Senior Statutory Auditor) for and on behalf of MHA MacIntyre Hudson Chartered Accountants Statutory Auditors Lyndale House Ervington Court Harcourt Way Meridian Business Park Leicester LE19 1WL 24 December Page 18

21 INDEPENDENT REPORTING ACCOUNTANTS' ASSURANCE REPORT ON REGULARITY TO IBSTOCK COMMUNITY COLLEGE ACADEMY TRUST AND THE EDUCATION FUNDING AGENCY In accordance with the terms of our engagement letter dated 14 October and further to the requirements of the Education Funding Agency (EFA) as included in the Academies Accounts Direction, we have carried out an engagement to obtain limited assurance about whether the expenditure disbursed and income received by Ibstock Community College Academy Trust during the year ended 31 August 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 Ibstock Community College Academy Trust and the EFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to Ibstock Community College Academy Trust and the EFA those matters we are required to state in a report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Ibstock Community College Academy Trust and the EFA, for our work, for this report, or for the conclusion we have formed. RESPECTIVE RESPONSIBILITIES OF IBSTOCK COMMUNITY COLLEGE ACADEMY TRUST'S ACCOUNTING OFFICER AND THE REPORTING ACCOUNTANT The accounting officer is responsible, under the requirements of Ibstock Community College Academy Trust's funding agreement with the Secretary of State for Education dated 4 September 2012, and the Academies Financial Handbook extant from 1 September 2012, for ensuring that expenditure disbursed and income received is applied for the purposes intended by Parliament and the financial transactions conform to the authorities which govern them. Our responsibilities for this engagement are established in the United Kingdom by our profession's ethical guidance and are to obtain limited assurance and report in accordance with our engagement letter and the requirements of the Academies Accounts Direction. We report to you whether anything has come to our attention in carrying out our work which suggests that in all material respects, expenditure disbursed and income received during the year ended to 31 August 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 issued by the EFA. We performed a limited assurance engagement as defined in our engagement letter. The objective of a limited assurance engagement is to perform such procedures as to obtain information and explanations in order to provide us with sufficient appropriate evidence to express a negative conclusion on regularity. A limited assurance engagement is more limited in scope than a reasonable assurance engagement and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in a reasonable assurance engagement. Accordingly, we do not express a positive opinion. Our engagement includes examination, on a test basis, of evidence relevant to the regularity and propriety of the Academy's income and expenditure. The work undertaken to draw our conclusions includes: reviewing the information in the Financial Management and Governance Self-assessment (FMGS) return and making appropriate enquiries of the Accounting Officer. a review of the objectives and activities of the academy, with reference to the income streams and other information available to us as auditors of the academy testing of a sample of grants received and other income streams testing of a sample of payments to suppliers and other third parties Page 19

22 INDEPENDENT REPORTING ACCOUNTANTS' ASSURANCE REPORT ON REGULARITY TO IBSTOCK COMMUNITY COLLEGE ACADEMY TRUST AND THE EDUCATION FUNDING AGENCY (continued) testing of a sample of payroll payments to staff evaluating the internal control procedures and reporting lines, and testing as appropriate reviewing the Minutes of the meetings of the Governing Body and other evidence made available to us, relevant to our consideration of regularity CONCLUSION In the course of our work, nothing has come to our attention which suggests that in all material respects the expenditure disbursed and income received during the year ended 31 August have not been applied to purposes intended by Parliament and the financial transactions do not conform to the authorities which govern them. MHA MacIntyre Hudson Chartered Accountants Statutory Auditors Lyndale House Ervington Court Harcourt Way Meridian Business Park Leicester LE19 1WL 24 December Page 20

23 STATEMENT OF FINANCIAL ACTIVITIES (Incorporating Income and Expenditure Account and Statement of Recognised Gains and Losses) FOR THE YEAR ENDED 31 AUGUST INCOMING RESOURCES Unrestricted Note Restricted Restricted fixed asset Total Transferred on conversion 2 45 (748) 12,895 12,192 Voluntary income Incoming resources from generated : Activities for generating Investment income Incoming resources from charitable activities: Funding for Academy's Educational Operations 5-2,942-2,942 Other incoming resources TOTAL INCOMING RESOURCES 599 2,299 12,895 15,793 RESOURCES EXPENDED Costs of activities for generating Charitable activities 8-2, ,088 Other resources expended Governance costs TOTAL RESOURCES EXPENDED , ,658 NET INCOMING RESOURCES / (RESOURCES EXPENDED) BEFORE TRANSFERS 146 (627) 12,616 12,135 Transfers between 20 - (9) 9 - NET INCOME FOR THE YEAR 146 (636) 12,625 12,135 Actuarial gains and losses on defined benefit pension schemes NET MOVEMENT IN FUNDS FOR THE YEAR 146 (631) 12,625 12,140 Total at 1 September TOTAL FUNDS AT 31 AUGUST 146 (631) 12,625 12,140 All of the Academy's activities derive from acquisitions in the current financial year. The Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 24 to 45 form part of these financial statements. Page 21

24 REGISTERED NUMBER: BALANCE SHEET AS AT 31 AUGUST FIXED ASSETS Note Tangible assets 17 12,625 CURRENT ASSETS Debtors Cash at bank 392 CREDITORS: amounts falling due within one year 19 (169) NET CURRENT ASSETS 296 TOTAL ASSETS LESS CURRENT LIABILITIES 12,921 Defined benefit pension scheme liability 25 (781) NET ASSETS INCLUDING PENSION SCHEME LIABILITIES 12,140 FUNDS OF THE ACADEMY Restricted : Restricted Restricted fixed asset 20 12,625 Restricted excluding pension liability 12,775 Pension reserve Total restricted 11,994 Unrestricted TOTAL FUNDS 12, (781) The financial statements were approved by the Trustees, and authorised for issue, on 10 December and are signed on their behalf, by:... Daphne Robinson Chair of Trustees... David King Accounting Officer The notes on pages 24 to 45 form part of these financial statements. Page 22

25 CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST Note Net cash flow from operating activities Capital expenditure and financial investment (9) Cash transferred on conversion to an Academy Trust INCREASE IN CASH IN THE YEAR 392 All of the cash flows are derived from acquisitions in the current financial year. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS FOR THE YEAR ENDED 31 AUGUST Increase in cash in the year 392 MOVEMENT IN NET FUNDS IN THE YEAR 392 NET FUNDS AT 31 AUGUST 392 The notes on pages 24 to 45 form part of these financial statements. Page 23

26 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 1. ACCOUNTING POLICIES 1.1 Basis of preparation of financial statements The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value. The financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP), 'Accounting and Reporting by Charities' published in March 2005, the Academies Accounts Direction issued by the EFA, applicable accounting standards and the Companies Act Fund accounting Unrestricted income represent those resources which may be used towards meeting any of the charitable objects of the Academy at the discretion of the Trustees. Restricted fixed asset are resources which are to be applied to specific capital purposes imposed by the Department for Education where the asset acquired or created is held for a specific purpose. Restricted general comprise all other restricted received and include grants from the Department for Education. Investment income, gains and losses are allocated to the appropriate fund. Page 24