Registered number: BUSHLOE HIGH SCHOOL. (A company limited by guarantee) ANNUAL REPORT AND FINANCIAL STATEMENTS

Transcription

1 Registered number: BUSHLOE HIGH SCHOOL ANNUAL REPORT AND FINANCIAL STATEMENTS

2 CONTENTS Page Reference and administrative details of the academy, its trustees and advisers 1 Trustees' report 2-8 Governance statement 9-11 Statement on regularity, propriety and compliance 12 Trustees' responsibilities statement 13 Independent auditors' report Independent reporting accountant's assurance report on regularity Statement of financial activities Balance sheet 20 Cash flow statement 21 Notes to the financial statements 22-41

3 REFERENCE AND ADMINISTRATIVE DETAILS OF THE ACADEMY, ITS TRUSTEES AND ADVISERS Trustees James Rixon, Chair & Community Trustee 2 Sheila Lamb, Vice Chair & Community Trustee 1,2 Carol Arlett, Community Trustee 1 Vince Blower, Parent Trustee (resigned 8 September ) 2 Martin Byrne, Parent Trustee 2 Elizabeth Coates, Community Trustee 1 Mark Elton, Community Trustee 1,2 Christl Hughes, Community Trustee 2 Clare McGorum, Community Trustee 1 Justin Pavey, Parent Trustee 2 Dave Smith, Parent Trustee 1 Julian Thornhill, Community Trustee 1 Lisa Watts, Parent Trustee (resigned 8 September ) 2 Marguerite Sturgeon, Staff Trustee 1 Elaine Gilroy, Staff Trustee 2 Mick Turner, Staff Trustee and Business Manager 1 Ian Cox, Co-Headteacher & Ex-Officio Trustee Members James Rixon Sheila Lamb Mick Turner Elizabeth Coates 1 Resources committee 2 Staffing, curriculum and standards committee Company registered number Registered office Principal operating office Senior management team Independent auditors Station Road Wigston Magna Wigston Leicestershire LE18 2DT Station Road Wigston Magna Wigston Leicestershire LE18 2DT Ian Cox & Ann Webster, Co-Headteachers Peter Grace, Deputy Headteacher Gwen Rudkin, Assistant Headteacher Nina Rigby, Assistant Headteacher Clear & Lane Limited Chartered Accountants 340 Melton Road Leicester LE4 7SL Page 1

4 TRUSTEES' REPORT 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 Bushloe High School (the Academy) for the year ended. 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 The school is a company limited by guarantee and an exempt charity. The charitable company is known as Bushloe High School. The school s Memorandum and Articles of Association are the primary governing documents of the School. The charitable company was incorporated on 1 October The school converted to academy status on 1 November 2012 when its operations, assets and liabilities were transferred to the Academy. The Governors act as the Trustees for the charitable activities of the school and are also the directors of the charitable company for the purposes of company law. Details of the Trustees who served throughout the year, except as noted, are included in the reference and administrative details on page 1. Members' liability Each member of the charitable company undertakes to contribute to the assets of the charitable company in the event of it being wound up while they are a member, or within one year after they cease to be a member, such amount as may be required, not exceeding 10, for the debts and liabilities contracted before they ceased to be a member. Method of recruitment and appointment or election of Trustees Trustees are appointed as follows: Parent Trustees Through open election for all eligible parents and guardians of pupils who attend Bushloe High School Staff Trustees Through open election for all eligible staff working at Bushloe High School Community Trustees Through nomination by the Board of Trustees at Bushloe High School. We would seek to appoint Trustees with relevant background or experience to complement the qualifications of existing Trustees. Policies and procedures adopted for the induction and training of Trustees We expect all Trustees to undertake training as appropriate to their work at the school. New Trustees are asked to attend an external induction programme. A review of training required and carried out is conducted regularly at Trustees meetings. A log is kept of all Trustees training and reviewed on a regular basis at Governing Body meetings. Page 2

5 TRUSTEES' REPORT (continued) Organisational structure The Governors, who are also the charity Trustees, are responsible for the overall management and control of the school and meet at least four times a year. The work of reviewing and monitoring most of the policies is delegated to the Staffing, Curriculum and Standards Committee and the Resources Committee. These meet at least once a term and work under the Chairmanship of a Trustee appointed at the first full Governors meeting of the academic year. The secretary to the Trustees is responsible for co ordinating the work of the Trustees and their Committees, preparation of the agendas and papers and review of matters arising. The School Business Manager is responsible for the preparation of the budget and accounts. All Trustees give their time freely and no remuneration or expenses were paid to Trustees during the period. The Trustees determine the general policy of the school and the day to day running of the school is delegated to the two Co-Headteachers, supported by the senior management team. The Co-Headteachers undertake the key leadership role overseeing educational, pastoral and administrative functions in consultation with senior staff. The day to day administration of the school is undertaken within the policies and procedures approved by the Trustees, which provide for only significant expenditure decisions to be referred to the Trustees for prior approval. The Co-Headteachers oversee the recruitment of all educational staff, whilst under delegated authority the School Business Manager oversees the recruitment of administrative and non teaching support staff. One of the Co-Headteachers is an ex-officio Trustee, Principal Accounting Officer and attends all full Governor meetings. The School Business Manager is invited to attend Trustees meetings as appropriate. Connected organisations, including related party relationships The school has no formal connection to any other Academy, Trust or Federation. We are, however, in the process of consulting with stakeholders regarding joining a Multi Academy Trust (MAT) with Abington Academy (our campus neighbours) with a view to the merger of the two schools in 2015 and initiating age range change to become an secondary school in The business case for developing the MAT will be delivered to the DfE during the Autumn term of. Risk management The Trustees are responsible for the overseeing of the risks faced by the school. Detailed considerations of risk are delegated to the school senior leadership team. Risks are identified, assessed and controls established throughout the period. Trustees and the school senior leadership team regularly review the risk management processes. Through the risk management processes established by the school, Trustees are satisfied that the major risks identified have been mitigated where necessary. It is recognised that the systems can only provide reasonable and not absolute assurance that major risks have been adequately managed. Principal activity Bushloe High School s purpose is to provide high quality learning activities to the pupils at the school and in the wider community of which we serve. Page 3

6 TRUSTEES' REPORT (continued) OBJECTIVES AND ACTIVITIES Objects and aims Bushloe High School s object is specifically restricted to the following: - To advance for the public benefit education in the United Kingdom, in particular but without prejudice to the generality of the foregoing by establishing, maintaining, carrying on, managing and developing a school offering a broad and balanced curriculum; - To promote for the benefit of individuals living in Wigston and the surrounding area who have need by reason of their age, infirmity or disability, financial hardship or social and economic circumstances or for the public at large, the provision of facilities for recreation or other leisure time activities in the interests of social welfare and with the object of improving the condition of life of the said individuals. Objectives, strategies and activities Continue to sustain outstanding or further improve as required: A. ACHIEVEMENT i. KS2 continue to improve attainment and progress English/Maths to ensure consistently above floor targets. A trajectory of on-going year on year improvement in relation to cohort intake. 10+ Achievement Project. Targeting specific pupils/groups to achieve this re Booster, enhanced intervention and targeted support. Also includes school to school primary partnership support and accountability Yrs 5 / 6 projects. ii. KS3 sustain/improve high overall outcomes, including level 7, in some subject areas; greater consistency in 2 levels progress. iii. iv. All groups of learners making at least good progress. Tracking and ensuring, in partnership with upper schools, KS3 / 4 collaborative curriculum planning, continuity and progression outcomes are in line with national expectations or above at GCSE floor target 5A*-C. B. QUALITY OF TEACHING i. SLMT, subject leaders, teachers involved in monitoring, evaluation to challenge, support and maintain outstanding teaching/learning, e.g. performance, department reviews, CPD. ii. Engaging, rigorous, challenging teaching for deep learning, independent thinking, with school and campus collaboration for continuity and progress at KS 2/3, 4/5. iii. iv. Opportunities, enrichment/extension for all learner groups and abilities. Consistency of assessment/tracking for learning to inform planning for pupil progress, AFL/APP, ICT/IMS application, marking/feedback/reporting. v. Provision of specialist art, extra-curricular, sport, extended school opportunities with high quality outcomes across the school and wider community. C. BEHAVIOUR AND SAFETY OF PUPILS i. Personal / social development / care guidance for pupil welfare; ECM / inclusion to impact on behaviour safety and sustain excellent climate for learning. ii. Involvement of support agencies to respond to pupils needs (2011 OFSTED). iii. Attendance and punctuality. iv. Safeguarding/pupil welfare Page 4

7 TRUSTEES' REPORT (continued) D. QUALITY OF LEADERSHIP IN AND MANAGEMENT OF THE SCHOOL i. Whole school strategic evaluation and improvements to continue upward trajectory, maintaining or further raising outcomes and standards. ii. Leading for outstanding teaching and learning through monitoring, evaluation, performance and department review, CPD. iii. Within the school and across the campus, plan for and develop opportunities respond to challenges from academy and campus wider developments to enhance school/campus, partnerships, provision and outcomes for all learners. iv. Ensuring a balanced curriculum of depth and breadth which addresses the needs and guidance of all pupils KS2/4. v. Take local/national leads in school to school support. vi. Trustees partnerships strategic vision for cross campus developments and holding to account. (SCS) staffing, curriculum standards, resources budget/hasab vii. Engaging parents in partnerships supporting outcomes for pupils. viii. Pupil voice/ leaders for school and community engagement and improvement. ix. Safeguarding and welfare of all pupils. Public benefit Bushloe High School is a charitable trust which seeks to benefit the public through the pursuit of its stated aims. The Academy's Trustees have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission. STRATEGIC REPORT ACHIEVEMENTS AND PERFORMANCE Bushloe is a diverse, inclusive, high achieving comprehensive school where pupils continue to develop and flourish. Targeted actions, including effective use of pupil premium, tracking of standards of pupils' learning and performance and teaching outcomes in the classroom, show evidence based impact and continuing three year average improvement. As a school sharply focused on continual improvement of teaching/learning, staff share good practice, research and lead training with SLMT and each other. We engage fully in school to school support CPD both locally and wider. Mrs Webster is National College LLE and provides training/coaching for school improvement and aspiring senior leaders across the city and county; we are also actively involved in Teaching School Alliance and within the Learning South Leicestershire Partnership (Community/Inclusion Lead). Level 5+ TAs at the end of KS3 are consistently in line with Leicestershire (a very high attaining authority) in all subjects. Discrepancies between higher level TAs in schools across the county make it difficult to use LA figures for solid benchmarking but our own assessments, validated by results at GCSE show excellent standards in the majority of subjects with DT, Art and RE areas which could be improved at higher levels. The KS3 cohort is stronger than that of Their projected core subject attainment, based on progress to the end of Year 8, is higher: Page 5

8 TRUSTEES' REPORT (continued) Assessments of the behaviour of all pupils in all lessons are given to parents via their annual reports. In 2013/, as a percentage of all behaviour assessments given, analysis is as follows: very disappointing: 0%, more self control necessary: 1.4%, usually reliable: 10.5%, consistently good: 54.7%, exceptionally high standard: 32%. In general terms we interpret this as 98% of assessments being at least satisfactory and 87% being more than satisfactory. Analyses of reported behaviour assessments show consistently high standards over the past 4 years. Exclusion rates at Bushloe continue to be extremely low. This year, we sadly had to exclude one pupil permanently, the first time we have faced this situation since January In 2012/13, fixed term exclusions remained at a similar low rate to previous academic years there were 13 fixed term exclusions involving 7 pupils for a total of 33.5 days. This compares very favourably with local and national data. Fixed term exclusions as a percentage of the whole school population was 2.13% compared to 6.89% locally and 6.75% nationally. Last academic year 2013/14, our attendance was 95.8% which is a 0.7% increase on our previous year and represents the highest average attendance since our current recording system began in Our persistent absence was 3.26% a reduction of 2.48% on the previous year. There is a strong school ethos, sense of community belonging, engagement, enjoyment and provision across a well taught, enriched, relevant, broad and balanced curriculum right from Year 6 through to Year 9, enhancing learning and broader, whole school, SMSC development. We have a clear literacy/numeracy focus but do not narrow, collapse or constrain the curriculum to teach to the tests'. Our pupils reap this benefit as they progress at both KS3 and KS4 showing they are well prepared and equipped for the next phase of education on leaving us; literacy standards appropriate to age and capabilities (Year 9 achievement). At KS3, progress remains outstanding and overall and has been securely maintained. Outstanding teaching has been sustained in a culture of shared responsibility for evaluation, accountability and improvement. High and improved attendance, together with low exclusion, overall excellent behaviour and pupil well being, demonstrates the impact on outcomes and pursuit of excellence in a wide range of school provisions. 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. FINANCIAL REVIEW The majority of the school s funding was provided by the Education Funding Agency (EFA). The school s total incoming resources for the year to amounted to 3,035,322 (2013: 13,153,818 of which 10,515,145 related to donated assets received on conversion). 2,765,275 of this income related to the EFA General Annual Grant (2013: 2,434,750). At the end of the period the school held unrestricted of 293,929 (2013: 282,869) which can be spent on any activities within the academy s charitable objects, and 187,572 restricted (excluding the fixed asset and pension ) which are to be spent in line with particular grant terms (2013: 81,415). Total unrestricted plus non fixed asset restricted amounted to 481,501, being 93,928 lower than cash reserves at due to accruals accounts adjustments for income and expenses. Page 6

9 TRUSTEES' REPORT (continued) Financial and risk management objectives and policies In common with all academies, funding is dependent on Government policy and the trust works to identify the implications of any change in funding methodology for state funded schools. The school has created a risk register that will be reviewed by Trustees and the senior management team. At the pension deficit on the Local Government Pension Scheme stood at 1,187,000 (2013: 846,000). The academy has mitigated its risk in relation to this pension scheme by taking out insurance against early retirement on the grounds of ill health. Changes in contributions rates as decided upon by the actuaries of the scheme are budgeted for as soon as they are known when they are updated every three years. Parliament has agreed, at the request of the Secretary of State for Education, to guarantee that, in the event of academy closure, outstanding pension scheme liabilities would be met by the Department for Education. The guarantee came into force on 18 July Reserves policy The Trustees have developed a reserve policy based upon the current income and expenditure streams, the need to match income with commitments and the existing level of reserves. The Trustees consider the appropriate level of reserves (non-fixed asset restricted plus unrestricted ) to be in the region of 250,000. The reason for this is to provide sufficient working capital to allow the school to deal with any delays in expected income and to provide resources to deal with unexpected emergencies. When the Academy's unrestricted plus restricted (excluding fixed assets) are combined at the Academy has 481,501 of reserves available compared to the target of 250,000. The Academy reserves above target level are likely to be used for buildings maintenance and infrastructure and to provide a contingency for additional costs expected in relation to the intended merger with Abington Academy Trust and the expansion of the age range from to Along with all other school policies the reserves policy is reviewed annually. Material investments policy The school s investment strategy is: - To regularly monitor cash flow and current account balances to ensure immediate financial commitments can be met and that the accounts have adequate balances to meet forthcoming commitments. In practise a working balance of between 200,000 and 600,000 is likely to be maintained. - To identify surplus to immediate cash requirements and transfer to a deposit account bearing a higher rate of interest. - To review periodically interest rates and to compare with other investment opportunities. The school s current policy is only to invest in risk free and readily accessible deposit accounts. Any change in policy requires the approval of Trustees via the resources committee. Page 7

10 PLANS FOR FUTURE PERIODS TRUSTEES' REPORT (continued) The school will continue to strive for sustained improvement of outcomes through a rigorous process of monitoring and evaluation. We aim to continue to raise standards of attainment in English and Mathematics through a range of intervention strategies, cross phase liaison and transition support. The school will continue to develop its significant strategic role with regard to campus developments, academies working groups and Trustees with a view to ensuring improved future outcomes for all pupils in education across KS2 4/5 and for the wider community. Funds held as custodian trustee on behalf of others The academy does not hold any such on behalf of any other organisations. Disclosure of information to auditors Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that: Auditors 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 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. The auditors, Clear & Lane Limited, have indicated their willingness to continue in office. The Designated Trustees will propose a motion re-appointing the auditors at a meeting of the Trustees. This report, incorporating the Strategic report, was approved by order of the governing body, as the company directors, on 5 December and signed on the board's behalf by:... James Rixon Chair of Trustees... Ian Cox Accounting Officer Page 8

11 GOVERNANCE STATEMENT Scope of Responsibility As Trustees, we acknowledge we have overall responsibility for ensuring that Bushloe High 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 Governing Body has delegated the day-to-day responsibility to the Co-Headteacher Ian Cox,, 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 Bushloe High School and the Secretary of State for Education. They are also responsible for reporting to the Governing Body any material weaknesses or breakdowns in internal control. Governance The information on governance included here supplements that described in the Trustees' report and in the Trustees' responsibilities statement. The Governing Body has formally met 7 times during the year. Attendance during the year at meetings of the Governing Body was as follows: Trustee Meetings attended Out of a possible James Rixon, Chair & Community Trustee 7 7 Sheila Lamb, Vice Chair & Community Trustee 6 7 Carol Arlett, Community Trustee 6 7 Vince Blower, Parent Trustee 3 7 Martin Byrne, Parent Trustee 6 7 Elizabeth Coates, Community Trustee 6 7 Mark Elton, Community Trustee 3 7 Christl Hughes, Community Trustee 6 7 Clare McGorum, Community Trustee 4 7 Justin Pavey, Parent Trustee 6 7 Dave Smith, Parent Trustee 4 7 Julian Thornhill, Community Trustee 6 7 Lisa Watts, Parent Trustee 5 7 Marguerite Sturgeon, Staff Trustee 7 7 Elaine Gilroy, Staff Trustee 7 7 Mick Turner, Staff Trustee & Business Manager 7 7 Ian Cox, Co-Headteacher & Ex-Officio Trustee 7 7 There were no key changes to the composition of the governing body during the period. Governance reviews: The Academy intends to conduct a self-evaluation review of governance or an external review of governance every 4 years starting in the year ended The resources committee is a sub-committee of the main Governing Body. Its purpose is to assist the decision making of the Governing Body by enabling more detailed consideration to be given to the best means of fulfilling the Governing Body s responsibility to ensure sound management of the Academy s finance and resources. Page 9

12 GOVERNANCE STATEMENT (continued) Attendance at meetings in the year was as follows: Trustee Meetings attended Out of a possible Sheila Lamb, Vice Chair & Community Trustee 6 6 Carol Arlett, Community Trustee 5 6 Elizabeth Coates, Community Trustee 5 6 Mark Elton, Community Trustee 3 6 Clare McGorum, Community Trustee 5 6 Dave Smith, Parent Trustee 3 6 Julian Thornhill, Community Trustee 4 6 Marguerite Sturgeon, Staff Trustee 4 6 Mick Turner, Staff Trustee and Business Manager 5 6 The staffing, curriculum and standards committee is a sub-committee of the main Governing Body. Its purpose is to assist the decision making of the Governing Body regarding staffing, curriculum development and standards of attainment and conduct. Attendance at meetings in the year was as follows: Trustee Meetings attended Out of a possible James Rixon, Chair & Community Trustee 3 4 Sheila Lamb, Vice Chair & Community Trustee 3 4 Vince Blower, Parent Trustee 2 4 Martin Byrne, Parent Trustee 3 4 Mark Elton, Community Trustee 4 4 Christl Hughes, Community Trustee 1 4 Justin Pavey, Parent Trustee 3 4 Lisa Watts, Parent Trustee 4 4 Elaine Gilroy, Staff Trustee 3 4 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 Bushloe High School for the year 1 September 2013 to and up to the date of approval of the annual report and financial statements. Capacity to Handle Risk The Governing Body has reviewed the key risks to which the academy is exposed together with the operating, financial and compliance controls that have been implemented to mitigate those risks. The Governing Body is of the view that there is a formal ongoing process for identifying, evaluating and managing the academy's significant risks, that has been in place for the year 1 September 2013 to and up to the date of approval of the annual report and financial statements. This process is regularly reviewed by the Governing Body. Page 10

13 GOVERNANCE STATEMENT (continued) 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 Governing Body; 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 Governing Body has considered the need for a specific internal audit function and has decided to appoint Leicestershire County Council as internal auditor. 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 Governing Body on the operation of the systems of control and on the discharge of the Governing Body' financial responsibilities. The internal auditor made minor recommendations regarding our systems that have now been actioned or are in the process of being actioned. The Governing Body is responsible for agreeing an action plan and monitoring that the action plan is successfully implemented. Review of Effectiveness As Accounting Officer, the Co-Headteacher Ian Cox, 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 Governing Body on 5 December and signed on its behalf, by:... James Rixon Chair of Trustees... Ian Cox Accounting Officer Page 11

14 STATEMENT ON REGULARITY, PROPRIETY AND COMPLIANCE As Accounting Officer of Bushloe High School I have considered my responsibility to notify the academy Governing Body and the Education Funding Agency of material irregularity, impropriety and non-compliance 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 (2013). I confirm that I and the academy Governing Body 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 (2013). I confirm that no instances of material irregularity, impropriety or funding non-compliance have been discovered to date. If any instances are identified after the date of this statement, these will be notified to the Governing Body and EFA.... Ian Cox Accounting Officer Date: 5 December Page 12

15 TRUSTEES' RESPONSIBILITIES STATEMENT The Trustees (who act as governors of Bushloe High School and are also the directors of the charitable company for the purposes of company law) are responsible for preparing the Trustees' report (including the Strategic 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 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 Governing Body on 5 December and signed on its behalf by:... James Rixon Chair of Trustees Page 13

16 INDEPENDENT AUDITORS' REPORT TO THE BOARD OF TRUSTEES OF BUSHLOE HIGH SCHOOL We have audited the financial statements of Bushloe High School for the year ended 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 2013 to 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 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 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 2013 to 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 TO THE BOARD OF TRUSTEES OF BUSHLOE HIGH 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. Luke Turner ACA FCCA (Senior statutory auditor) for and on behalf of Clear & Lane Limited Chartered Accountants Statutory Auditors 340 Melton Road Leicester LE4 7SL 5 December Page 15

18 INDEPENDENT REPORTING ACCOUNTANTS' ASSURANCE REPORT ON REGULARITY TO BUSHLOE HIGH SCHOOL AND THE EDUCATION FUNDING AGENCY In accordance with the terms of our engagement letter dated 17 April 2013 and further to the requirements of the Education Funding Agency (EFA) as included in the Academies Accounts Direction 2013 to, we have carried out an engagement to obtain limited assurance about whether the expenditure disbursed and income received by Bushloe High School during the year 1 September 2013 to 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 Bushloe High School and EFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to Bushloe High School 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 Bushloe High School and EFA, for our work, for this report, or for the conclusion we have formed. Respective responsibilities of Bushloe High School's accounting officer and the reporting accountant The accounting officer is responsible, under the requirements of Bushloe High School's funding agreement with the Secretary of State for Education and the Academies Financial Handbook extant from 1 September 2013, 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 2013 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 2013 to 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 2013 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. 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. Page 16

19 INDEPENDENT REPORTING ACCOUNTANTS' ASSURANCE REPORT ON REGULARITY TO BUSHLOE HIGH 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 2013 to have not been applied to purposes intended by Parliament and the financial transactions do not conform to the authorities which govern them. Luke Turner ACA FCCA (Senior statutory auditor) Clear & Lane Limited Chartered Accountants Statutory Auditors 340 Melton Road Leicester LE4 7SL 5 December Page 17

20 STATEMENT OF FINANCIAL ACTIVITIES (incorporating income and expenditure account and statement of total recognised gains and losses) INCOMING RESOURCES Unrestricted Note Restricted Restricted fixed asset Year to 31 August Total 10 months to Total Incoming resources from generated : Voluntary income - transfer on conversion ,515,145 Activities for generating 3 18, ,419 30,537 Investment income Incoming resources from charitable activities 5-3,001,001 15,087 3,016,088 2,607,714 TOTAL INCOMING RESOURCES 19,234 3,001,001 15,087 3,035,322 13,153, RESOURCES EXPENDED Costs of generating : Fundraising expenses and other costs 9 8, ,174 4,473 Charitable activities - 2,926, ,206 3,160,692 2,683,707 Governance costs 6-8,809-8,809 41,400 TOTAL RESOURCES EXPENDED 9 8,174 2,935, ,206 3,177,675 2,729,580 NET INCOMING / (OUTGOING) RESOURCES BEFORE TRANSFERS, CARRIED FORWARD 11,060 65,706 (219,119) (142,353) 10,424,238 Page 18

21 STATEMENT OF FINANCIAL ACTIVITIES (continued) Unrestricted Note Restricted Restricted fixed asset Year to 31 August Total 10 months to Total NET INCOMING / (OUTGOING) RESOURCES BEFORE TRANSFERS, BROUGHT FORWARD 11,060 65,706 (219,119) (142,353) 10,424,238 Transfers between Funds 18 - (11,549) 11, NET INCOME / (EXPENDITURE) FOR THE YEAR 11,060 54,157 (207,570) (142,353) 10,424,238 Actuarial gains and losses on defined benefit pension schemes - (289,000) - (289,000) (54,000) NET MOVEMENT IN FUNDS FOR THE YEAR 11,060 (234,843) (207,570) (431,353) 10,370, Total at 1 September ,869 (764,585) 10,851,954 10,370,238 - TOTAL FUNDS AT 31 AUGUST 293,929 (999,428) 10,644,384 9,938,885 10,370,238 All activities relate to continuing operations. The Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 22 to 41 form part of these financial statements. Page 19

22 FIXED ASSETS BUSHLOE HIGH SCHOOL REGISTERED NUMBER: BALANCE SHEET AS AT 31 AUGUST 2013 Note Tangible assets 14 10,644,384 10,851,954 CURRENT ASSETS Stocks 15 3,544 2,842 Debtors 16 58,157 82,257 Cash at bank and in hand 575, , , ,581 CREDITORS: amounts falling due within one year 17 (155,629) (336,297) NET CURRENT ASSETS 481, ,284 TOTAL ASSETS LESS CURRENT LIABILITIES 11,125,885 11,216,238 Defined benefit pension scheme liability 24 (1,187,000) (846,000) NET ASSETS INCLUDING PENSION SCHEME LIABILITY 9,938,885 10,370,238 FUNDS OF THE ACADEMY Restricted : Restricted ,572 81,415 Restricted fixed asset 18 10,644,384 10,851,954 Restricted excluding pension liability 10,831,956 10,933,369 Pension reserve (1,187,000) (846,000) Total restricted 9,644,956 10,087,369 Unrestricted , ,869 TOTAL FUNDS 9,938,885 10,370,238 The financial statements were approved by the Trustees, and authorised for issue, on 5 December and are signed on their behalf, by:... James Rixon Chair of Trustees The notes on pages 22 to 41 form part of these financial statements. Page 20

23 CASH FLOW STATEMENT Year to Period to 2013 Note Net cash flow from operating activities 20 (29,319) 364,370 Returns on investments and servicing of finance Capital expenditure and financial investment 21 (11,549) (24,410) Cash transferred on conversion to an academy trust - 275,522 (DECREASE)/INCREASE IN CASH IN THE YEAR (40,053) 615,482 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS Year to Period to 2013 (Decrease)/Increase in cash in the year (40,053) 615,482 MOVEMENT IN NET FUNDS IN THE YEAR (40,053) 615,482 Net at 1 September ,482 - NET FUNDS AT 31 AUGUST 575, ,482 The notes on pages 22 to 41 form part of these financial statements. Page 21

24 NOTES TO THE FINANCIAL STATEMENTS 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 2013 to issued by 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. Designated comprise unrestricted that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted fixed asset are resources which are to be applied to specific capital purposes imposed by funders where the asset acquired or created is held for a specific purpose. Restricted general comprise all other restricted received and include grants from Education Funding Agency. Transfers between and between categories of i.e. restricted, designated and unrestricted are only processed with due regard to grant terms, agreements of funders (where applicable) and due process where formal trustees resolutions are required. Full disclosures are given within the notes to the accounts for any transfers processed. Investment income, gains and losses are allocated to the appropriate fund. Page 22

25 1. ACCOUNTING POLICIES (continued) 1.3 INCOMING RESOURCES NOTES TO THE FINANCIAL STATEMENTS All incoming resources are included in the Statement of financial activities when the academy has entitlement to the, certainty of receipt and the amount can be measured with sufficient reliability. Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant 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 year for which it is receivable and any unspent amount is reflected as a balance in the restricted general fund. Capital grants are recognised when receivable 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. The value of donated services and gifts in kind provided to the academy are recognised at their open market value in the period in which they are receivable as incoming resources, where the benefit to the academy can be reliably measured. An equivalent amount is included as expenditure under the relevant heading in the Statement of financial activities, except where the gift in kind was a fixed asset in which case the amount is included in the appropriate fixed asset category and depreciated over the useful economic life in accordance with the academy's policies. 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. 1.4 RESOURCES EXPENDED Expenditure is recognised in the period in which a liability is incurred and has been classified under headings that aggregate all costs related to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use. Other support costs are allocated based on the spread of staff costs. Costs of generating are costs incurred in attracting voluntary income, and those incurred in trading activities that raise. Charitable activities are costs incurred in the academy's educational operations. Governance costs include the costs attributable to the academy's compliance with constitutional and statutory requirements, including audit, strategic management and Trustees' meetings and reimbursed expenses. All resources expended are inclusive of irrecoverable VAT. Page 23

26 1. ACCOUNTING POLICIES (continued) 1.5 GOING CONCERN NOTES TO THE FINANCIAL STATEMENTS 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 one year from the date of approval of the financial statements. 1.6 TANGIBLE FIXED ASSETS AND DEPRECIATION All assets costing more than 1,000 are capitalised. Where tangible fixed assets have been acquired with the aid of specific grants, either from the government or from the private sector, they are included in the Balance sheet at cost and depreciated over their expected useful economic life. The related grants are credited to a restricted fixed asset fund in the Statement of financial activities and are carried forward in the Balance sheet. Depreciation on such assets is charged to the restricted fixed asset fund in the Statement of financial activities so as to reduce the fund over the useful economic life of the related asset on a basis consistent with the academy's depreciation policy. A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of Financial Activities. 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: 1.7 STOCKS Freehold property - 2% Straight line Freehold land - not depreciated Fixtures and fittings - 15% Straight line Computer equipment - 25% Straight line Stocks are valued at the lower of cost and value in use. 1.8 TAXATION The academy is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the academy is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. Page 24