ENFIELD GRAMMAR SCHOOL

Transcription

1 Registered number: ENFIELD GRAMMAR SCHOOL TRUSTEES' REPORT AND FINANCIAL STATEMENTS

2 CONTENTS Page Reference and Administrative Details 1-2 Trustees' Report 3-7 Governance Statement 8-11 Statement on Regularity, Propriety and Compliance 12 Statement of Trustees' Responsibilities 13 Independent Auditors' Report on the Financial Statements Independent Reporting Accountant's Assurance Report on Regularity Statement of Financial Activities Incorporating Income and Expenditure Account 18 Balance Sheet 19 Statement of Cash Flows 20 Notes to the Financial Statements 21-37

3 REFERENCE AND ADMINISTRATIVE DETAILS OF THE ACADEMY, ITS MEMBERS, TRUSTEES AND ADVISERS Members Trustees Mr R Bowerman Mr K Barnfield Mr P Collard Rev Dr S Griffiths Mrs A Williams Mr R Bowerman Mr K Barnfield Mr P Collard Rev Dr S Griffiths Ms R Stanley-McKenzie Ms J Garrad Mr J Kerr, Headteacher Mr P Riddell Mrs A Williams Mr C Hide, Responsible Officer Mr K Altman Mrs R Collis, Chair of Governors Mrs I Phillips (resigned 22 February 2016) Mr S Beesley Ms A Fairhurst Ms E O'Donnell (resigned 3 March 2016) Mrs J Woodward Mr A Ness Mr J North (appointed 24 June 2016) Company Secretary Senior Management Team Company name Registered and principal office Ms L Culora Mr J Kerr, Headteacher Mr R Harding, Deputy Headteacher Mr D Alder, Deputy Headteacher Mr S Purrier, Director of Sixth Form Mr M Alder, Director of Sport and Staff Development Mr Ali Cook, Head of Lower School Mrs E Carberry, School Business Manager Mr M Pieri, KS4 Achievement & Progression Enfield Grammar School Market Place Enfield Middlesex EN2 6LN Company registered number Page 1

4 REFERENCE AND ADMINISTRATIVE DETAILS OF THE ACADEMY, ITS TRUSTEES AND ADVISERS Advisers (continued) Chief Executive Officer Independent Auditors Bankers Mr J Kerr Price Bailey LLP Chartered Accountants Statutory Auditors Causeway House 1 Dane Street Bishop's Stortford Hertfordshire CM23 3BT Lloyds TSB Silver Street Enfield Middlesex Page 2

5 TRUSTEES' REPORT The Trustees present their Annual Report together with the financial statements and Auditor's Report of Enfield Grammar School (the Academy, the Trust, or the Charitable Company) for the year ended 31 August The Annual Report serves the purposes of both a Trustee's report, and a Directors' report under company law. STRUCTURE, GOVERNANCE AND MANAGEMENT Constitution The Academy is a Charitable Company limited by guarantee and was set up by a Memorandum of Association on 7 July The Academy converted on 1 August The Trust is a company (limited by guarantee) and under the Academies Act 2010 it became an Exempt Charity on 1 August 2011 when it came into existence. The Trust s Memorandum and Articles of Association are the primary governing documents of the Trust. The Trustees of The Charitable Company are also the Directors for the purposes of company law. The terms Trustee, Director and Governor are interchangeable. The Trust was set up to establish, maintain and carry on, for the public benefit, secondary education of boys in Enfield offering a broad curriculum with a strong emphasis on sport. 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 Academy insurers encompass all relevant insurance including Governor third party indemnity provision. Methods, policies and procedures for recruitment, appointment, induction and training of new governors Governors are appointed for a fixed term. The Headmaster is an ex officio member of the Governing Body. Parent Governors and Staff Governors are elected to office or appointed if there are insufficient candidates offering themselves for election. Foundation Governors are invited to stand by the existing Foundation Governors. They are selected from persons who have long standing links and/or association with the Academy. New Governors are required to attend a training programme. The induction programme would involve a tour of the School, meetings with students and staff and provision of policy and procedures documents that are appropriate to the role they undertake as governors with particular emphasis on the committee work that they will undertake. Organisational Structure The Governors are responsible for setting general policy, adopting an annual plan and budget, monitoring the Academy by the use of budgets and making major decisions about the direction of the Academy, capital expenditure and senior staff appointments. The Leadership Team consists of: Headmaster : John Kerr Deputy Heads : Roger Harding and David Alder Assistant Headteachers Director of Sixth Form Director of Sport Head of Lower School KS4 Achievement & Progressions School Business Manager : Simon Purrier : Mark Alder : Ali Cook : Michael Pieri : Eileen Carberry The Leadership team control the Academy at an executive level implementing policies and reporting to the Governing Body. The Leadership Team is responsible for the day to day operation of the Academy, in particular organising staff, resources and pupils. They are responsible for the authorisation of spending within agreed budgets and for the appointment of staff following vetting and safeguarding recruitment process. The Headmaster is the Accounting Officer. Page 3

6 TRUSTEES' REPORT (continued) Governors make up the membership of the following Committees which meet at least three times a year: Stakeholders Committee Standards and Achievement Committee Resources (including Pay and Performance) Committee Admissions Committee Strategic Development Committee Governors also have areas of special responsibilities for Equality and Diversity, the School Council, Parent Liaison, Community Cohesion, Health and Safety, Child Protection, ICT, SEN, Pupil Progress, Stakeholder Engagement, Pupil Premium, Vocational and Staff Liaison. Individual Governors are also linked to subject/curriculum areas. The Governors undertake annual training, in addition to receiving reports from the Heads of Departments at Committee meetings and undertaking suitable training provided by the Local Authority. Related Parties and Connected Organisation Owing to the nature of the Academy's operations and the composition of the board of Governors being drawn from local public and private sector organisations, it is inevitable that from time to time transactions will take place with organisations in which a member of the board of Governors may have an interest. All transactions involving such organisations are conducted at arm's length and in accordance with the Academy's financial regulations and normal procedures. In furtherance of its stated aims, Enfield Grammar School works in close partnership with various bodies and organisations including, for example, ETSA (Enfield School Teaching Alliance), Middlesex University and other further and higher education institutions, the Youth Sport Trust, Tottenham Hotspur Football Club, Middlesex Cricket Club, Glaxo SmithKline (GSK), British Council, Age Concern, Waitrose and Nuffield Health. The Foundation The Enfield Grammar School Foundation (the Foundation) is a separate Trust governed by the Charity Commission and owns the land and buildings of the Academy. Additionally there are limited financial which are invested to provide an income which is used in the following ways: 1. For the maintenance of those at School or for those going on to higher education. 2. To enable travel in this country or abroad. 3. For the study of music or other arts and sciences. 4. To promote education for pupils and former pupils. The foundation has 5 Trustees Keith Barnfield Roy Bowerman Paul Collard Rev Dr Stephen Griffiths Anna Williams OBJECTIVES AND ACTIVITIES Objects and aims As set out in the Articles of Association, the Academy s object is to advance for the public benefit education in the United Kingdom: to establish high quality teaching, learning and assessment; to provide a full and diverse curriculum and other activities; to provide an environment where every child and every member of staff matters; the provision of community facilities. Page 4

7 TRUSTEES' REPORT (continued) The main objectives of the Trust during the period ended 31 August 2016 were included in the School year Development Plan, and include: to enrich the lives of all pupils to make them better individuals. By providing: a well-rounded, comprehensive education with a commitment to success and achievement for all; and a rich and broad experience that prepares students for life in the 21st Century and enables them to make a significant contribution to their local community, the wider society in which they live and to become good citizens. To this end the priorities were: placing the Sports specialism at the heart of the school; raising the quality of teaching and learning; assessment of learning effective monitoring, tracking and evaluation of pupil progress; developing a curriculum for all; enhancing care, guidance and support; and ensuring effective governance. The aim of the management structure is to devolve responsibility, increase accountability and encourage involvement in decision making at all levels. The Management Team of the Academy is responsible for delivering the approved strategic actions of the plan agreed by the Governors through the School Development Plan (SDP). Governors carefully monitor the SDP at each Committee meeting. The Governors confirm they have referred to the guidance contained in the Charity Commission s guidance on public benefit. ACHIEVEMENTS AND PERFORMANCE Achievements and performance Through the delivery of its vision and priorities the Trust aims to raise standards. The critical success factors for the Trust are pupil performance; quality of teaching, leadership and behaviour and safety of pupils. These are closely aligned to the Ofsted criteria for assessing schools. The key GCSE measure showed a rate of improvement in line with the local and national averages. The quality of the teaching staff improved and the qualitative leadership indicators are also improving. In behaviour and safety, attendance, fixed term and permanent exclusions steps have been taken which have seen general overall improvements. A comprehensive self-evaluation process which is externally verified by consultants using the national framework developed by Ofsted needs to confirm the progress made and the effectiveness of the year s work. Examination results for the Academic year 2015/16 The GCSE examination results for 2016 were good and continue to be above the national average for boys. The A Level results for 2016 improved with 21% obtaining A* - A Grades and 73% obtaining A* C grades. Risk Management The Trustees confirm that the major risks to which the Trust is exposed are reviewed and monitored by the Resources Committee. In accordance with normal commercial practice the Academy has purchased insurance to protect Governors and officers from claims arising from negligent acts, errors or omissions occurring whilst on Academy business. The insurance provides cover up to 2,000,000 on any one claim. Equal Opportunities The Trustees recognise that equal opportunities should be an integral part of good practice within the workplace. The Trust aims to establish equal opportunity in all areas of its activities including creating a working environment in which the contribution and needs of all people are fully valued. Page 5

8 TRUSTEES' REPORT (continued) Going Concern After making appropriate enquiries, the Governing Body has a reasonable expectation that the Academy Trust has adequate resources to continue in operational existence for the foreseeable future. For this reason it continues to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Statement of Accounting Policies. FINANCIAL REVIEW Financial Review The principal source of funding for the Academy is the General Annual Grant (GAG) funding that it receives from the Education Funding Agency (EFA). For the year ended 31 August 2016 the Academy received 5,923,714 in GAG funding. A high percentage of this funding is spent on wages and salaries and support costs to deliver the Academy's primary objective of the provision of education. Principal risks and uncertainty The Academy maintains a risk register identifying the major risks to which the Academy is exposed, and identifying actions and procedures to mitigate those risks. This register is approved and monitored by the Resources Committee. The principal risks facing the Academy at a contextual level are outlined below in the principal risks and uncertainties section; those facing the Academy at an operational level are addressed by its systems and by internal financial and other controls. The Governors report that the Academy s financial and internal controls conform to guidelines issued by the Education Funding Agency (EFA), and that improvements to the wider framework of systems dealing with business risk and risk management strategy continue to be made and formally documented. The Governors assess the principal risks and uncertainties facing the Academy as follows: Staff retention: possibly the biggest single risk to the School would lie in its failure to retain key staff in particular, members of the Senior Leadership Team. However, it is not felt that there are any immediate threats in this regard. Material decrease in income affecting provision: highly unlikely. The budget for is sound, and the longerterm financial plan shows sufficient contingency against unwelcome future developments. Falling rolls: highly unlikely. The School has been oversubscribed for many years and there is every sign of this continuing. In fact the Academy s increased control over its admissions is leading to efficiencies and optimization of its roll. Bank balances & investments: there is no significant risk other than an institution ceasing to trade. The Academy is therefore seeking to spread its investment over a number of solid and government backed institutions. Debtors: there are no material debtors. The Academy s cash flow is healthy and long-term financial planning predicts it will remain so. Reserves policy The Governors review the cash reserve levels of the Academy annually. This review encompasses the nature of income and expenditure streams, the need to match income with commitments and the nature of cash reserves. The Governors have determined that the appropriate level of contingency cash reserves should be equivalent to one month of expenditure. The reason for this is to provide sufficient working capital to cover delays between spending and receipt of grants and to provide a cushion to deal with unexpected emergencies such as urgent maintenance. The Academy s current level of free reserves (total less the amount held in fixed assets and restricted ) is 940,520, which is considered to be adequate to meet the Academy needs over future years. Due to the accounting rules for the Local Government Pension Scheme under FRS102, the Academy is recognising a significant pension fund deficit of 1,558,000. This does not mean that an immediate lia bility 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 payments of 51,628 per annum towards the deficit and it is envisaged that his amount will decrease in the forthcoming years. The recognition of this deficit has no direct impact on the free reserves of the Academy Trust. Page 6

9 TRUSTEES' REPORT (continued) Investment policy The Academy has a policy of investing its cash balances with a view to maximising returns, but where greater weight is assigned to the safety of the investment. The policy aims to invest cash such that its cash balances and liquid investments at least equal the figure outlined in the reserves policy. PLANS FOR FUTURE PERIODS Plans for the future The Academy has been working in Partnership with the Football Federation to build an all-weather 3G pitch and changing rooms. The work commenced in Spring 2015 and will be completed in January This facility will further enhance our sporting provision for the Academy. In addition, it will be made available for community use in the evenings and at weekends. The Academy will continue striving to improve the levels of performance of its students at all levels, and will attempt to maintain its recent progress in ensuring the number of students on roll properly reflects the demand for places. The Governors intend to enhance and expand facilities in pursuance of the School s commitment to ensure that all students achieve their potential. It is recognised that students with differing abilities and aptitudes will have differing curriculum requirements and that a greater diversity of learning environments will be required to deliver these. PROVISION OF INFORMATION TO AUDITORS Each of the persons who are Governors at the time when this Governors' Report is approved has confirmed that: so far as that Governor is aware, there is no relevant audit information of which the Charitable Company's Auditors are unaware, and that Governor has taken all the steps that ought to have been taken as a Governor in order to be aware of any information needed by the Charitable Company's Auditors in connection with preparing their report and to establish that the Charitable Company's Auditors are aware of that information. AUDITORS The Auditors, Price Bailey LLP, are willing to continue in office and a resolution to appoint them will be proposed at the Annual General Meeting. This Report was approved by the Governors on and signed on their behalf, by: Mrs R Collis Chair of Trustees Page 7

10 GOVERNANCE STATEMENT SCOPE OF RESPONSIBILITY As Trustees, we acknowledge we have overall responsibility for ensuring that Enfield Grammar School has an effective and appropriate system of control, financial and otherwise. However such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives, and can provide only reasonable and not absolute assurance against material misstatement or loss. The Board of Trustees has delegated the day-to-day responsibility to the Headteacher, as Accounting Officer, for ensuring financial controls conform with the requirements of both propriety and good financial management and in accordance with the requirements and responsibilities assigned to it in the funding agreement between Enfield Grammar School and the Secretary of State for Education. They are also responsible for reporting to the Board of Trustees any material weaknesses or breakdowns in internal control. GOVERNANCE The information on governance included here supplements that described in the Trustees' Report and in the Statement of Trustees' Responsibilities. 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 Mr R Bowerman 3 4 Mr K Barnfield 4 4 Mr P Collard 3 4 Rev Dr S Griffiths 1 4 Ms R Stanley-McKenzie 3 4 Ms J Garrad 3 4 Mr J Kerr 4 4 Mr P Riddell 2 4 Mrs A Williams 4 4 Mr C Hide 4 4 Mr K Altman 4 4 Mrs R Collis 4 4 Mrs I Phillips 0 0 Mr S Beesley 2 4 Ms A Fairhurst 4 4 Ms E O'Donnell 0 0 Mrs J Woodward 4 4 Mr A Ness 3 4 Mr J North 1 1 Governance reviews: During the financial year, there was no key changes in the Composition of the Board of Trustees. There has been changes in the National Curriculum, this may require the appointment of additional teaching staff, which in turn will have a negative impact on the School budget. The Trust carried out a Governor training day on 30 January 2016 and was found to have sound financial footing for the last year and has been well managed and budgeted for all involved. The Governing Body should extend its thanks not only to the Head teacher and SBM but also to all those given responsibility for budgets to adhere to and the Premises Manger and his team that have all done an excellent job conserving limited so well. The training focussed on: 1. Ofsted update Common Inspection Framework. 2. Roles and responsibilities of the Governing Body. 3. Accountability for school improvement/evidence. 4. Data and what Governors need to know. An external review of Governance is carried out annually, the next review is diarised for Spring Term Page 8

11 The key outcomes of the training were: GOVERNANCE STATEMENT (continued) 1. Governors were better prepared for future Ofsted inspections and clear about the changes in focus of the new Ofsted Framework. 2. Stronger and more effective governance enabled the Governing Body to better support the School and hold the Leadership Team to account. The Key outcomes of the Self Evaluation were: 1. The Governors vision needs to be clear and communicated to staff and students. 2. Governors need to be more involved with the formation of the School Development Plan. 3. Governors need to highlight that the School is promoting British Values. The Governing Body is well aware of the continuing need to monitor and control budgets given the reduction in income anticipated over the coming years. This will continue to be a challenge for the Trust. The Resources Committee is a sub-committee of the Board of Trustees. The sub-committee has formally met 4 times during the year. Its purpose is to address financial matters. Attendance at meetings in the year was as follows: Trustee Meetings attended Out of a possible Mr J Kerr 4 4 Mr S Beesley 2 4 Ms R Stanley-McKenzie 4 4 Mrs R Collis 4 4 Mr C Hide 1 4 Ms A Williams 4 4 Mr R Bowerman 0 4 Mrs J Woodward 4 4 Mr P Collard 4 4 All committees have the following responsibilities: To receive reports from members of staff about matters relating to any of the issues listed in their terms of reference. To contribute to, monitor and evaluate relevant parts of the School s self-evaluation or equivalent, the School Development Plan and the policies allocated to them, reporting or making recommendations to the Governing Body. To consider recommendations from relevant external reviews for example audit, Ofsted or local authority review, to agree the actions needed to address any issues identified and to monitor and evaluate regularly the implementation of any plan agreed, reporting or making recommendations to the Governing Body. To take appropriate action on any other relevant matter referred by the Governing Body. The Resources and Management Committee will oversee: The Trust's finances ensuring that the Trust operates within the financial regulations of Education Funding Agency and with the Academies Financial Handbook requirements, responding to any issues arising from the audit of the Trust's accounts or reviews and ensuring value for money. The maintenance and short-term development of the School site and premises. The adoption and implementation of staffing policies and procedures, ensuring that all principles of good and fair employment practice are adhered to, that staff and trade unions are consulted and legal requirements fulfilled. To make decisions in respect of service level agreements. Finance Keep under review the scheme of delegation in financial matters including the level of delegation to the Headmaster for the day-to-day financial management of the School and present to the Governing Body any recommendations for change. Prepare and present to the Governing Body for ratification an annual budget reflecting priorities in the School Development Plan. Monitor the budget (and any other devolved eg General Annual Grant) and ensure a termly report to the Governing Body with an evaluation of the use of resources and any appropriate recommendations. Ensure that the Governors Fund or other such fund is audited and appropriate records are kept. Page 9

12 GOVERNANCE STATEMENT (continued) Premises, health and safety Agree the lettings and charges policy for the use of School premises. Keep the health and safety and emergency procedures and policies under review, ensuring that necessary checks and assessments are carried out and prioritised for action. Ensuring the Governing Body is compliant with all statutory requirements in this respect. REVIEW OF VALUE FOR MONEY As Accounting Officer, the Headteacher has responsibility for ensuring that the Academy delivers good value in the use of public resources. The Accounting Officer understands that value for money refers to the educational and wider societal outcomes achieved in return for the taxpayer resources received. The Accounting Officer considers how the Academy s use of its resources has provided good value for money during each academic year, and reports to the Board of Trustees where value for money can be improved, including the use of benchmarking data where appropriate. The Accounting Officer for the Academy has delivered improved value for money during the year by: A re-tendering of the cleaning contract was undertaken by the School in November The services of a specialist tendering company were used to assist with the tender specification and proposal. Following an evaluation of the tenders submitted and an interview process, a new contract was awarded with a start date of The new contract provides better long-term value for the School, not only in monetary terms, but in the service it provides. There is a noticeable improvement in the standard of cleaning throughout the School. The partnership between Nuffield Health and the School has contributed to an increase in lettings, thereby providing much-needed additional income for the School. The repairs and maintenance costs have been managed prudently and in a cost-effective manner, due to the appointment of an additional member of Site Staff. This has provided greater capacity and flexibility to conduct inhouse maintenance and repairs, thereby providing better value for money. 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 Enfield Grammar School for the year 1 September 2015 to 31 August 2016 and up to the date of approval of the Annual Report and financial statements. CAPACITY TO HANDLE RISK The Board of Trustees has reviewed the key risks to which the Academy is exposed together with the operating, financial and compliance controls that have been implemented to mitigate those risks. The Board of Trustees is of the view that there is a formal ongoing process for identifying, evaluating and managing the Academy's significant risks, that has been in place for the year 1 September 2015 to 31 August 2016 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; and identification and management of risks. Page 10

13 GOVERNANCE STATEMENT (continued) The Board of Trustees has considered the need for a specific internal audit function and has decided not to appoint an Internal Auditor. However, the Trustees have appointed Mr Chris Hide, a Trustee, as Responsible Officer (RO). The RO's role includes giving advice on financial matters and performing a range of checks on the Academy's financial systems. In particular the checks carried out in the year included: On a termly basis, the RO 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. Chris Hide delivered both reviews as planned and no material control issues were identified. REVIEW OF EFFECTIVENESS As Accounting Officer, the Headteacher has responsibility for reviewing the effectiveness of the system of internal control. During the year in question the review has been informed by: the work of the Internal Responsible Officer; the work of the external Auditors; the financial management and governance self-assessment process; and 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 Chris Hide and a plan to address weaknesses and ensure continuous improvement of the system is in place. Approved by the Board of Trustees on and signed on their behalf, by: Mrs R Collis Chair of Trustees Mr J Kerr Accounting Officer Page 11

14 STATEMENT ON REGULARITY, PROPRIETY AND COMPLIANCE As Accounting Officer of Enfield Grammar School I have considered my responsibility to notify the Academy Trust Board of Trustees and the Education Funding Agency (EFA) of material irregularity, impropriety and non-compliance with EFA 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 Board of Trustees are able to identify any material irregular or improper use of by the Academy Trust, or material non-compliance with the terms and conditions of funding under the Academy Trust s funding agreement and the Academies Financial Handbook I confirm that no instances of material irregularity, impropriety or funding non-compliance have been discovered to date. If any instances are identified after the date of this statement, these will be notified to the Board of Trustees and EFA. Mr J Kerr Accounting Officer Page 12

15 STATEMENT OF TRUSTEES' RESPONSIBILITIES The Trustees (who act as Governors of Enfield Grammar School and are the Directors of the Charitable Company for the purposes of company law) are responsible for preparing the Strategic Report, 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 2015 and the Academies' Accounts Direction 2015 to 2016; make judgments and accounting estimates that are reasonable and prudent; state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements; and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charitable Company will continue in business. The 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 the Board of Trustees on and signed on its behalf by: Mrs R Collis Chair of Trustees Page 13

16 INDEPENDENT AUDITORS' REPORT ON THE FINANCIAL STATEMENTS TO THE MEMBERS OF ENFIELD GRAMMAR SCHOOL We have audited the financial statements of Enfield Grammar School for the year ended 31 August 2016 which comprise the Statement of Financial Activities Incorporating Income and Expenditure Account, the Balance Sheet, the Statement of Cash Flows 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) including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Academies Accounts Direction 2015 to 2016 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 Charitable Company 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 nonfinancial information in the Trustees' Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our Report. OPINION ON FINANCIAL STATEMENTS In our opinion the financial statements: give a true and fair view of the state of the Academy's affairs as at 31 August 2016 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, the Charities SORP 2015 and the Academies Accounts Direction 2015 to 2016 issued by the Education Funding Agency. OPINION ON OTHER MATTER PRESCRIBED BY THE COMPANIES ACT 2006 In our opinion the information given in the Trustees' Report, incorporating the Strategic Report, for the financial year for which the financial statements are prepared is consistent with the financial statements. Page 14

17 INDEPENDENT AUDITORS' REPORT ON THE FINANCIAL STATEMENTS TO THE MEMBERS OF ENFIELD GRAMMAR SCHOOL 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. Mr Gary Miller (Senior Statutory Auditor) for and on behalf of Price Bailey LLP Chartered Accountants Statutory Auditors Causeway House 1 Dane Street Bishop's Stortford Hertfordshire CM23 3BT Date: Page 15

18 INDEPENDENT REPORTING ACCOUNTANTS' ASSURANCE REPORT ON REGULARITY TO ENFIELD GRAMMAR SCHOOL AND THE EDUCATION FUNDING AGENCY In accordance with the terms of our engagement letter dated 16 March 2016 and further to the requirements of the Education Funding Agency (EFA) as included in the Academies Accounts Direction 2015 to 2016, we have carried out an engagement to obtain limited assurance about whether the expenditure disbursed and income received by Enfield Grammar School during the year 1 September 2015 to 31 August 2016 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 Enfield Grammar School and the EFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to Enfield Grammar School 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 Enfield Grammar School and the EFA, for our work, for this Report, or for the conclusion we have formed. RESPECTIVE RESPONSIBILITIES OF ENFIELD GRAMMAR SCHOOL'S ACCOUNTING OFFICER AND THE REPORTING AUDITOR The Accounting Officer is responsible, under the requirements of Enfield Grammar School's funding agreement with the Secretary of State for Education dated 1 August 2011, and the Academies Financial Handbook extant from 1 September 2015, 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 2015 to We report to you whether anything has come to our attention in carrying out our work which suggests that in all material respects, expenditure disbursed and income received during the year 1 September 2015 to 31 August 2016 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 2015 to 2016 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 to our conclusion includes: Consideration and corroboration of the evidence supporting the Accounting Officers statement on regularity, propriety and compliance. Evaluation of the general control environment of the Academy Trust, extending the procedures required for financial statements to include regularity. Discussions with and representations from the Accounting Officer and other key management personnel. An extension of substantive testing from our audit of the financial statements to cover matters pertaining to regularity, propriety and compliance in particular checking that selected items were appropriately authorised, and appropriate. Page 16

19 INDEPENDENT REPORTING ACCOUNTANTS' ASSURANCE REPORT ON REGULARITY TO ENFIELD GRAMMAR SCHOOL AND THE EDUCATION FUNDING AGENCY (continued) CONCLUSION In the course of our work, nothing has come to our attention which suggests that in all material respects the expenditure disbursed and income received during the year 1 September 2015 to 31 August 2016 have not been applied to purposes intended by Parliament and the financial transactions do not conform to the authorities which govern them. Reporting Accountant Price Bailey LLP Chartered Accountants Date: Page 17

20 STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING INCOME AND EXPENDITURE ACCOUNT INCOME FROM: Note Unrestricted 2016 Restricted 2016 Restricted fixed asset 2016 Total 2016 As restated Total 2015 Donations and capital grants 2 10, , ,465 1,703, ,366 Charitable activities 4 241,127 6,273,865-6,514,992 6,716,798 Other trading activities 3 179, , ,242 Investments 1, ,214 1,019 TOTAL INCOME 431,708 7,090, ,465 8,398,986 7,695,425 EXPENDITURE ON: Charitable activities 36,783 7,338,642 77,665 7,453,090 7,410,217 TOTAL EXPENDITURE 5 36,783 7,338,642 77,665 7,453,090 7,410,217 NET INCOME / (EXPENDITURE) BEFORE TRANSFERS 394,925 (247,829) 798, , ,208 Transfers between 14 - (51,083) 51, NET INCOME / (EXPENDITURE) BEFORE OTHER RECOGNISED GAINS AND LOSSES 394,925 (298,912) 849, , ,208 Actuarial gains/(losses) on defined benefit pension schemes 20 - (905,000) - (905,000) 115,000 NET MOVEMENT IN FUNDS 394,925 (1,203,912) 849,883 40, ,208 RECONCILIATION OF FUNDS: Total brought forward 545,595 1,745,912 1,215,855 3,507,362 3,107,154 TOTAL FUNDS CARRIED FORWARD 940, ,000 2,065,738 3,548,258 3,507,362 Page 18

21 FIXED ASSETS ENFIELD GRAMMAR SCHOOL REGISTERED NUMBER: BALANCE SHEET AS AT 31 AUGUST Note Tangible assets 11 2,056,796 1,215,855 CURRENT ASSETS Debtors 12 2,882,493 2,267,631 Cash at bank and in hand 1,019, ,825 3,901,978 3,206,456 CREDITORS: amounts falling due within one year 13 (852,516) (319,949) NET CURRENT ASSETS 3,049,462 2,886,507 TOTAL ASSETS LESS CURRENT LIABILITIES 5,106,258 4,102,362 Defined benefit pension scheme liability 20 (1,558,000) (595,000) NET ASSETS INCLUDING PENSION SCHEME LIABILITIES 3,548,258 3,507,362 FUNDS OF THE ACADEMY Restricted income : Restricted income ,912 Restricted - donation in kind 14 2,100,000 2,100,000 Restricted fixed asset 14 2,065,738 1,215,855 Restricted income excluding pension liability 4,165,738 3,556,767 Pension reserve (1,558,000) (595,000) Total restricted income 2,607,738 2,961,767 Unrestricted income , ,595 TOTAL FUNDS 3,548,258 3,507,362 The financial statements were approved by the Trustees, and authorised for issue, on are signed on their behalf, by: and Mrs R Collis Chair of Trustees The notes on pages 21 to 37 form part of these financial statements. Page 19

22 Cash flows from operating activities STATEMENT OF CASH FLOWS Note Net cash provided by operating activities , ,765 Cash flows from investing activities: Interest received 1,214 1,019 Capital expenditure (894,519) (24,248) Net cash used in investing activities (893,305) (23,229) Change in cash and cash equivalents in the year 80, ,536 Cash and cash equivalents brought forward 938, ,289 Cash and cash equivalents carried forward 1,019, ,825 Page 20

23 NOTES TO THE FINANCIAL STATEMENTS 1. ACCOUNTING POLICIES A summary of the principal accounting policies adopted (which have been applied consistently, except where noted), judgements and key sources of estimation uncertainty, is set out below. 1.1 Basis of preparation of financial statements The financial statements 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 2015 to 2016 issued by EFA, the Charities Act 2011 and the Companies Act Enfield Grammar School constitutes a public benefit entity as defined by FRS 102. First time adoption of FRS 102 These financial statements are the first financial statements of Enfield Grammar School prepared in accordance with Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities SORP 2015 (SORP 2015). The financial statements of Enfield Grammar School for the year ended 31 August 2015 were prepared in accordance with previous Generally Accepted Accounting Practice ( UK GAAP ) and SORP Some of the FRS 102 recognition, measurement, presentation and disclosure requirements and accounting policy choices differ from previous UK GAAP. Consequently, the Trustees have amended certain accounting policies to comply with FRS 102 and SORP Any reconciliations to previous UK GAAP for the comparative figures are included in note Company status The Academy is a company limited by guarantee. Those Members who are Trustees are noted on page 1. In the event of the Academy being wound up, the liability in respect of the guarantee is limited to 10 per Member of the Academy. 1.3 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 with restrictions imposed by the funder and include grants from the Department for Education. Page 21

24 NOTES TO THE FINANCIAL STATEMENTS 1. ACCOUNTING POLICIES (continued) 1.4 Income All income is recognised once the Academy has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Grants are included in the Statement of Financial Activities Incorporating Income and Expenditure Account on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued. General Annual Grant is recognised in full in the Statement of Financial Activities Incorporating Income and Expenditure Account in the year 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 when there is entitlement and are not deferred over the life of the asset on which they are expended. Unspent amounts of capital grant are reflected in the balance in the restricted fixed asset fund. Donations are recognised on a receivable basis where there is certainty of receipt and the amount can be reliably measured. Other income, including the hire of facilities, is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service. 1.5 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 allocated on the portion of the asset s use. Charitable activities and governance costs 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. All resources expended are inclusive of irrecoverable VAT. 1.6 Going concern The Trustees assess whether the use of going concern is appropriate, i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Academy to continue as a going concern. The Trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the Academy Trust has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the Academy Trust s ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements. Page 22