GLOBAL ACADEMY UTC TRUST LIMITED
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1 Registered number: I GLOBAL ACADEMY UTC TRUST LIMITED TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 AUGUST
2 CONTENTS Page Reference and administrative details of the charity, its trustees and advisers Trustees'report lndependent auditors' report Statement of financial activities I Balance sheet Notes to the financial statements
3 REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE PERIOD ENDED 3I AUGUST Trustees Ms E Bradley Ms N A Brett Mr W Harding Mr D R Henley Ms A Sweet Company registered number I Registered office 30 Leicester Square, London, WC2H 7LA Independent auditorc Wellers, 1 Vincent Square, London, SWlP 2PN Page 1
4 TRUSTEES'REPORT FOR THE PERIOD ENDED 3I AUGUST 2OI5 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 Global Academy UTC Trust Limited (the company) for the period ended 31 August. The Trustees confirm that the Trustees' Report and FinancialStatements of the company comply with the current statutory requirements, the requirements of the company'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 o Constitution The company is a charitable company limited by guarantee and was set up by a Trust deed The company is constituted under a Trust deed The principal object of the company is that of an academy trust. o Method of appointment or election of Trustees The management of the company is the responsibility of the Trustees who are elected and co-opted under the terms of the Trust deed. o Policies adopted for the induction and training of trustees As set out in the articles the following describes the name of anybody or person entitled to nominate or apportion one or more trustees. The Members may appoint Trustees through such process as they may determine. The members are Ashley Tabor, Stephen Miron and Nigel Carrington. Parent Trustees will be elected or appointed in accordance with the terms of reference determined by the Trustees from time to time but not until the Global Academy is open. The Trustees may appoint Co-opted Trustees. Trustees are initially only representatives of Global and UAL. Will Harding was elected the Chair of the Steering Group. o Organisational structure and decision making The Board of Trustees has not been established yet as the Global Academy is not open. lnstead a Project Steering Group "PSG" has been set up to undertake all Trust business without sub-committees due to there being no school currently in the Trust. Others are 'in attendance" at the PSG meetíngs and include representatives from Global Radio Services Limited, Baker Dearing Trust and University of the Arts, London. The main responsibilities of the Board are prescribed in the Funding Agreement between the Global Academy UTC Trust and the Secretary of State for Education and in the Academies Financial Handbook. o Risk management The Trustees have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the company, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks. Page2
5 TRUSTEES' REPORT (continued) FOR THE PERIOD ENDED 3I AUGUST 2OI5 Trustees' indemnities Subject to the provisions of the Companies Act 2006 (section 236) every Trustee or other officer of the Global Academy UTC Trust shall be indemnified out of the assets of the Academy Trust against any liability incurred by him in that capacity in defending any proceedings, whether civil or criminal, to which Judgment is given in favour or in which he is acquitted or in connection with any application in which relief is granted to him by the court from liability for negligence, default, breach of duty or breach of trust in relation to affairs of the Global Academy UTC Trust. OBJECTIVES AND ACTIVITIES o Policies and objectives The purpose of the GlobalAcademy Trust is to advance for the public benefít education in the United Kingdom, in particular by establishing, maintaining, carrying on, managing and developing a school offering a broad and balanced curriculum including vocational education specialising in Broadcast & Digital Media. The curriculum must be appropriate to the needs of its students. The Trustees confirm that they have complied with the duty in Section 4 of the Charities Act 2011 to have due regard to the guidance issued by the Charity Commission on public benefit. The PSG is the body charged with setting up the school and has spent the year carrying out its tasks. The maín target is to open the school for September 2016 with up to 200 students. As such the PSG has concentrated on:. The building project to ensure the building will be ready on time. The appointment of the Principal Designate to manage the school. Marketing the schoolto recruit students. Liaison with the EFA and DfE on all matters as they are funding the new school. Funding, to ensure the school is set up adequately The school is due to open in September The new Governing Body will be responsible for setting targets and challenging the executives about the quality of education the students recéive. ACHIEVEMENTS AND PERFORMANCE o Going concern After making appropriate enquiries, the Trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue 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. FINANC AL REVIEW o Financialand risk management objectives and policies The company's net surplus for the year was î920/50 and unrestricted reserves were (f41,525). Grants received in the year amounted to t1,124,375. The Trustees will continue to closely monitor the performance of the Charity's fundraising initiatives, and continue to consider ways of maximising fundraising return on investment. Page 3
6 TRUSTEES' REPORT (continued) FOR THE PERIOD ENDED 31 AUGUST 2OI5 income was f 1,205,428 and the Trustees have plans to increase this income target for the year ahead o Reserves policy fund balances carried forward are 8920,250 It is the policy of the Company to maintain fund balances at a level approximately equal to six months running costs for the Charity. The Trustees review the way in which are allocated with the aim of maximising the amounts being utilised whilst maintaining the minimum reserves. The Trustees consider the level of reserves held at period end to be reasonable. o DEFICIT During the period under review a deficit has arisen on the unrestricted fund. The members will continue to support the funding requirments of the company until the Academy is open. PLANS FOR THE FUTURE o Future developments The PSG will continue to work to ensure the new school is set up in such a way that it becomes outstanding and provides an education suitable for all the students who attend. MEMBERS' LIABILITY Each member of the Charitable Company undertakes to contribute to the assets of the Charitable Company in the event of it being wound up while they are a member, or within one year after they cease to be a member, such amount as may be required, not exceeding 10, for the debts and liabilities contracted before they ceased to be a member. TRUSTEES' RESPONSIBILITIES STATEMENT The Trustees (who are also directors of Global Academy UTC Trust Limited for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for eaçh 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 the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. ln preparing these financial statements, the Trustees are required to: select suitable accounting policies and then apply them consistently;. observe the methods and principles in the Charities SORP;. make judgments and accounting estimates that are reasonable and prudent;. prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Page 4
7 TRUSTEES' REPORT (continued) FOR THE PERIOD ENDED 31 AUGUST 2OI5 charitable company will continue in operation 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. 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. ln preparing this report, the Trustees have taken advantage of the small companíes exemptions provided by section 4154 of the Companies Act This report was approved by the Trustees on 21 December and signed on their behalf by Ms Trustee Page 5
8 INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GLOBAL ACADEMY UTC TRUST LIMITED We have audited the financial statements of Global Academy UTC Trust Limited for the period ended 31 August set out on pages 9 to 17. The financial reporting framework that has been applied in their preparation is applicable law and the Financial Reporting Standard for Smaller Entities (effective April 2008) (United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities). This report is made solely to the charitable company's members, as a body, in accordance with section 144 of the Charities Act 201 I and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company 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. The Trustees have elected for the financial statements to be audited in accordance with the Charities Act 2011 rather than the Companies Act Accordingly we have been appointed as auditors under section 144 of the Charities Act 2011 and report to you in accordance with regulations made under section 154 of that Act. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and lnternational Standards on Auditing (UK and lreland). 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 company'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. ln addition, we read all the financial and non-financial 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 tn the course of performing the audit. lf we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. OPINION ON FINANCIAL STATEMENTS ln our opinion the financial statements: r give a true and fair view of the state of the charitable company's affairs as at 31 August and of its incoming resources and application of resources, including its income and expenditure, for the period then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities; and have been prepared in accordance with the requirements of the Companies Act Page 6
9 INDEPENDENT AUDITORS'REPORT TO THE MEMBERS OF GLOBAL ACADEMY UTC TRUST LIMITED MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:. the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or the company has not kept adequate accounting records; or. the financial statements are not in agreement with the accounting records and returns; or. we have not received all the information and explanations we require for our audit. lndependent Reporting Accountant's Assurance Report on Regularity to Global Academy UTG Trust Limited and the Education Funding Agency ln accordance with the terms of our engagement letter dated 29 June and further to the requirements of the Education Funding Agency (EFA) as included in the Academies Accounts Direction to, we have carried out an engagement to obtain limited assurance about whether the expenditure disbursed and income received by GlobalAcademy UTC Trust Limited during the period 1 Novemberto 31 August2OlS 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 Global Academy UTC Trust Limited and EFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to Global Academy UTC Trust Limited and 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 GlobalAcademy UTC Trust Limited and EFA, for our work, for this report, or for the conclusion we have formed. Respective responsibilities of Global Academy UTC Trust Limited's accounting officer and the reporting accountant The accounting officer is responsible, under the requirements of Global Academy UTC Trust Limited's funding agreement with the Secretary of State for Education and the Academies Financial Handbook, extant from 1 September, 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 lo. We report to you whether anything has come to our attention in carrying out our work which suggests that in all material respects, expenditure disbursed and income received during the period 1 November 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 to issued by 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. Page 7
10 INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GLOBAL ACADEMY UTC TRUST LIMITED A limited assurance engagement is more limited in scope than a reasonable assurance engagement and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in a reasonable assurance engagement. Accordingly, we do not express a positive opinion. Our engagement includes examination, on a test basis, of evidence relevant to the regularity and propriety of the academy trust's income and expenditure. Our work during the audit included an examination of some of the company's transactions, procedures and controls with a view to expressing an opinion on the accounts for the period. This work was not directed primarily towards discovering weaknesses other than those that would affect our audit opinion or towards the detection of fraud. We have included in this letter only matters that have come to our attention as a result of our normal audit procedures and consequently our comments should not be regarded as a comprehensive record of all weaknesses that may exist or of all improvements that might be made, or of the operating effectiveness of your internal controls. Our work also included a review of the adequacy of disclosures in the financial statements and consideration of the appropriateness of the accounting policies and estimation techniques adopted by the company. This review identified no significant matters, which we believe are necessary to draw to your attention. Conclusion ln the course of our work, nothing has come to our attention which suggests that in all material respects the expenditure disbursed and income received during the period 1 November to 31 August has not been applied to purposes intended by Parliament and the financial transactions do not conform to the authorities which govern them. ü)il/* Wellers Accountants 1 Vincent Square London SWlP 2PN Date: ztltzlzotf Wellers are eligible to act as auditors in terms of section 1212 of the Companies Act 2006 Page 8
11 STATEMENT OF FINANCIAL ACTIVITIES (incorporating income and expenditure account) FOR THE PERIOD ENDED 31 AUGUST INCOMING RESOURCES lncoming resources from generated : Voluntary income lnvestment income Note 2 3 Unrestricted I 81, Restricted 1,124,375 e 1,206, TOTAL INCOMING RESOURGES 81,053 1,124,375 1,205,428 RESOURCES EXPENDED Charitable activities Governance costs ,778 4, , ,378 4,800 TOTAL RESOURCES EXPENDED MOVEMENT IN TOTAL FUNDS FOR THE YEAR - NET TNCOME(EXPENDTTURE) FOR THE PERIOD 8 122, , ,178 (41, , ,250 at 1 November TOTAL FUNDS AT 31 AUGUST 2OI5 (41, , ,250 The notes on pages 11 to 17 form part of these financial statements. Page 9
12 REGISTERED NUMBER: BALANCE SHEET AS AT 3I AUGUST 2OI5 FIXED ASSETS lntangible assets Tangible assets 3l August Note e f î , ,011,941 1,030, October î CURRENT ASSETS Cash at bank CREDITORS: amounts falling due within one year 13 64,420 (174,8101 NET CURRENT LIAB LITIES TOTAL ASSETS LESS CURRENT LIABILITIES (110,390) 920,250 CHARIry FUNDS Restricted Unrestricted TOTAL FUNDS ,775 (41, ,250 The Trustees consider that the company is entitled to exemption from the requirement to have an audit under the provisions of section 477 of the Companies Act 2006 ("the Act") and members have not required the company to obtain an audit for the period in question in accordance with section 476 of the Act. However, an audit is required in accordance with section 144 of the Charities Act The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and for preparing financial statements which give a true and fair view of the state of affairs of the company as at 31 August and of its net incoming resources for the period in accordance with the requirements of sections 394 and 395 of the Act and which othen vise comply with the requirements of the Act relating to financial statements, so far as applicable to the company. The financial statements have been prepared in accordance with the provisions applícable to small companies within Part 15 of the Companies Act 2006 and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008). The financial statements were approved by the Trustees on 21 December and signed on their behalf, by: Ms The notes on pages 11 to 17 form part of these financial statements. Page 10
13 NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 3I AUGUST 2OI5 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, and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008). The financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP), 'Accounting and Reporting by Charities' published in March 2005, applicable accounting standards and the Companies Act Gompany status The company is a company limited by guarantee. The members of the company are the Trustees named on page 1. ln the event of the company being wound up, the liability in respect of the guarantee is limited to 1 per member of the company. 1.3 Fund accounting General are unrestricted which are available for use at the discretion of the Trustees in furtherance of the general objectives of the company and which have not been designated for other purposes. Restricted are which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the company for particular purposes. The costs of raising and administering such are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. lnvestment income, gains and losses are allocated to the appropriate fund. 1.4 lncoming resources All incoming resources are included in the Statement of financial activities when the company has entitlement to the, certainty of receipt and the amount can be measured with sufficient reliability. Donated services or facilities, which comprise donated services, are included in income at a valuation which is an estimate of the financial cost borne by the donor where such a cost is quantifiable and measurable. No income is recognised where there is no financial cost borne by a third party. lncome tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. lncome tax recoverable in relation to investment income is recognised at the time the investment income is receivable. Page 1 I
14 NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 AUGUST 2OI5 1. ACCOUNTINGPOLICIES(continued) 1.5 Resources expended Expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources. Support costs are those costs incurred directly in support of expenditure on the objects of the company and include prolect management carried out at Headquarters. Governance costs are those incurred in connection with administration of the company and compliance with constitutional and statutory requirements. 1.6 lntangible fixed assets and amortisation lntangible fixed assets are stated at cost less amortisation. Amortisation is provided for over the life of the development of the website. Given that the website is not yet finished there has been no amortisation provided for during the period. 1.7 Tangible fixed assets and depreciation All assets costing more than 500 are capitalised. Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases: Long-term leasehold property Over the life of the leasehold commencing from when the building is completed 2. VOLUNTARY NCOME Donations Grants Unrestricted 81,000 Restricted 1,124,375 f 81,000 1,124,375 t Voluntary income 8l,000 1,124,375 1,205, INVESTMENT INCOME Unrestricted E Restricted t lnvestment income - local cash Page 12
15 NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 3I AUGUST 2OI5 4. EXPENDITURE BY CHARITABLE ACTIVITY SUMMARY BY FUND TYPE Unrestricted c Restricted î Direct costs Support costs 117, , , , , ,379 SUMMARY BY EXPENDITURE TYPE Other costs î Direct costs Support costs 280, , GOVERNANCECOSTS Unrestricted t Restricted e t, Governance Auditors' remuneration 4,800 4, DIRECT COSTS Legal and professional fees Travel costs Direct costs 27g,g6g , t 280, ,171 Page 13
16 NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 3I AUGUST 7. SUPPORTCOSTS Bank interest Sundry Support costs 8l 126 I î ANALYSIS OF RESOURCES EXPENDED BY EXPENDITURE TYPE Direct costs Support costs Charitable activities Governance Other costs 280, ,378 4, , ANALYSIS OF RESOURCES EXPENDED BY ACTIVITIES Activities undertaken directly Support costs E î. Direct costs Support costs 280,171 zot 280, , ,378 Page 14
17 NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 3I AUGUST 2OI5 r0. NET TNCOMTNG / (OUTGOTNG) RESOURCES This is stated after charging: Auditors' remuneration Governance lnternal audit costs 4,800 î During the period, no Trustees received any remuneration ( - [NlL). During the period, no Trustees received any benefits in kind ( - NlL). One Trustee received reimbursement of expenses amounting to 303 in the current period, ( - no Trustees - [NlL). 11. INTANGIBLE F XED ASSETS Cost Additions At31 August Net book value At 31 August Development 18,799 18,799 18,799 At 31 October Page 15
18 GLOBAL ACADEMY UTC TRUST LIM TED NOTES TO THE FINANCIAL STATEMENTS FOR THE PER OD ENDED 3I AUGUST 12. TANGIBLE FIXED ASSETS Long-term leasehold property t Cost Additions At 31 August 1,011,841 1,011,841 Depreciation At 1 November and 31 August20l5 Net book value At 31 August 1,011,941 At31 October I3. GREDITORS: Amounts falling due within one year Trade creditors Other creditors Accruals and deferred income 3l August 50, ,944 4, October, 174,B',,0 Page 16
19 NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 3I AUGUST 2OI5 14. STATEMENTOF FUNDS Brought Foruvard Incoming resources I Resources Expended Carried Fonryard Unrestricted General Funds - all Other General 231,053 (r50,000) (272, ,000 (41, ,053 (122,5781 (41,5251 Restricted Restricted Funds - all of 1,124,375 (162,600) 961,775 1,205,428 (285, ,250 SUMMARY OF FUNDS Brought Forward lncoming resources Resources Expended t Carried Forurard General Restricted 8t,053 1,124,375 (122,5781 (162,600) (41, ,775 1,205,428 (285, ,250 I5. ANALYSIS OF NET ASSETS BETWEEN FUNDS Unrestricted I Restricted t î Tangible fixed assets I ntangible fixed assets Current assets Creditors due within one year 18,799 64,420 (124,74/-1 1,011,941 (50,066) 1,011,941 18,799 64,420 (174,8101 (41,525' 961, ,250 Page 17
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