(A Company Limited by Guarantee) ANNUAL REPORT AND FINANCIAL STATEMENTS

Transcription

1 Registered number; ANNUAL REPORT AND FINANCIAL STATEMENTS

2 CONTENTS Page Reference and Administrative Details of the Academy, its Trustees and Advisers 1-2 Trustees' Report 3-9 Governance Statement Statement on Regularity, Propriety and Compliance 13 Trustees* Responsibilities Statement 14 Independent Auditor's Report to the Board of Trustees of The Market Bosworth School Independent Reporting Accountant's Assurance Report on Regularity to The Market Bosworth School and the Education Funding Agency Statement of Financial Activities incorporating Income & Expenditure Account Balance Sheet 21 Cash Flow Statement 22 Notes to the Financial Statements, incorporating Statement of Accounting Policies & other notes to the Financial Statements

3 REFERENCE AND ADMINISTRATIVE DETAILS OF THE ACADEMY, ITS TRUSTEES AND ADVISERS Members E Herd, Chair 1. 2 '* K De Fraja 1 ' 4 J Perry Trustees P Talbot, Vice Chair 1 ' W Moore, Staff Trustee 2 D Hill, Staff Trustee 3 M Kennedy 1-5 F Wilson 1 D Winter-bottom S Malchercyz 2 ' 3 R Townsend, Staff Trustee 2 J Rowland, Staff Trustee (appointed 30 October 2013) 3 R Wood (appointed 30 October 2013) 2 D Hickie (appointed 11 December 2013) 1 S Wilson, Principal (appointed 26 August 2014) 1 W Partes (resigned 30 October 2013) J Hemingway, Principal (resigned 26 August 2014) J Stokes (resigned 6 January 2014) 1 Leadership & Management Committee 2 Teaching & Learning Committee 3 Behaviour & Safety Committee 4 Governance Structure & Process Sub Committee 5 Pay Review Committee Company registration number Principal and registered office Station Road Market Bosworth Leicestershire CV13 0JT Company secretary J Brandwood Senior management team S Wilson, Principal & Accounting Officer D Beckitt, Vice Principal S Wallace, Assistant Principal J Slattery, Assistant Principal C Flannery, Assistant Principal J Brandwood, School Business Manager Page 1

4 REFERENCE AND ADMINISTRATIVE DETAILS OF THE ACADEMY, ITS TRUSTEES AND ADVISERS Administrative details (continued) Independent auditor MHA Maclntyre Hudson Chartered Accountants Statutory Auditors 11 Merus Court Meridian Business Parte Leicester LE191RJ Banters HSBC Bank Pic Nuneaton Warwickshire CV13 0EP Solicitors Browne Jacobson Victoria Square House Victoria Square Birmingham B2 4BU Page 2

5 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 The Market Bosworth School (the Academy) for the year ended 31 August The Trustees confirm that the Annual Report and Financial Statements of the Academy comply with 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 Market Bosworth School is a company limited by guarantee and an exempt charity. The charitable company's Articles of Association are the primary governing documents of the Academy. The Governors act as the Trustees for the charitable activities of The Market Bosworth School and are also the directors of the charitable company for the purposes of company law. The charitable company is known as The Market Bosworth School. 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. Trustees' Indemnities Trustees benefit from indemnity insurance to cover the liability of the Trustees which by virtue of any rule of taw would otherwise attach to them in respect of any negligence, default or breach of trust or breach of duty of which they may be guilty in relation to the Academy Trust. Insurance cover is provided by QBE European Operations Policy No: /01/2013/001/028. The cost of insurance was 1,243. Method of Recruitment and Appointment or Election of Trustees The Members may appoint up to 19 Trustees, but the total number of Trustees who are employees of the Academy Trust (including the Principal) must not exceed one third of the total number of Trustees. A Parent Trustee must be a parent of a student at the Academy at tie time when they are elected. Where a vacancy for a Parent Trustee is required to be filled by election, the Governing Body shall take such steps as are reasonably practical to secure that every person who is Known to them to be a parent of a registered student at the Academy is informed of the vacancy and that it is required to be filled by election, informed that they are entitled to stand as a candidate, and vote at the election, and given an opportunity to do so. Any election of Parent Trustees which is contested shall be held by secret ballot. The Staff Trustees shall be elected by staff members at the Academy. A Staff Trustee must be a staff member at the time when they are elected. If a Staff Trustee ceases to be a staff member then they shall be deemed to Page 3

6 TRUSTEES* REPORT (continued) have resigned and shall cease to be a Trustee. The Trustees may appoint up to 3 co-opted Governors, A 'co-opted Governor* means a person who is appointed to be a Trustee by being co-opted by Trustees who have not themselves been so appointed. The Trustees may not co-opt an employee of the Academy Trust as a co-opted Governor if the number of Trustees who are employed by the Academy Trust (including the Principal) would thereby exceed one third of tie total number of Trustees. Policies and Procedures Adopted for the Induction and Training of Trustees The Market Bosworth School subscribes to Leicestershire County Council's Governor Services, which exists to provide support and training for school Trustees. A comprehensive range of services is offered to governing bodies on a subscription basis. These are: Induction training; Governor training programme; In-house training, including the How can we become more effective? Governing Body exercise and customised sessions on specific subjects; Partnership Training; Helpline; Clerking Services; Clerks' Briefings; arid Briefing papers and publications. Organisational structure The Academy Trust management structure consists of the Trustees, the Senior Leadership Team, the Pastoral Leaders and Heads of Department. The aim of the management structure is to devolve responsibility and encourage decision making at all levels. The Trustees are responsible for the strategic development of the Academy, adopting an annual School Development Plan and budget; monitoring the Academy by use of budgets and management accounts and making major decisions about the direction of the Academy, capital expenditure and senior staff appointments. There are 3 sub-committees Leadership & Management, Behaviour & Safety, Teaching & Learning, each having responsibility for an area of the School Improvement Plan. The senior leadership team comprises of the Principal, Vice Principal, 3 Assistant Principals and the School Business Manager. The senior leadership team direct the Academy at an executive level implementing the policies laid down by the Trustees and reporting back to them. There are 3 Pastoral Leaders, 1 for each year intake. Pastoral Leaders are responsible for student progress and student welfare on a day-to-day basis. Heads of Department are responsible for the day-to-day operation of curriculum subject areas and organisation of their teaching staff, capitation resources, facilities and students. All staff within the management structure have delegated budgets and are responsible for the authorisation of spending within the agreed budgets. Connected Organisations, including Related Party Relationships Page 4

7 TRUSTEES' REPORT (continued) The Market Bosworth School is a single Academy, financially independent and does not work in federation with any other organisation. However, The Market Bosworth School does work collaboratively with other local schools, universities, ITT providers and businesses to help raise achievement and gain best value. From Easter 2014 we now provide the dinners for the feeder Primary in Market Bosworth. Risk Management The Trustees have responsibility to assess the major risks to which the Academy is exposed. The Academy has produced a risk register to formally identify the financial risks to which the Academy is exposed. An effective system of internal control is in place to minimise the risks. Where significant financial risk remains, adequate insurance cover is in place. The internal control systems and the exposure to risks are considered on a regular basis by management and the Trustees. OBJECTIVES AND ACTIVITIES Objects and Aims The principal object and activity of the Charitable Trust is the operation of the Academy at The Market Bosworth School to provide education for students between the ages of 11 and 14, (11 to 16 from September 2014). The Academy's admissions code has Trustee approval and is published on the website. The Academy has a rolling programme of self-evaluation and this is summarised in the Academy's Self Evaluation Form (SEF). Action points from the evaluation are then developed in the School Improvement Plan. Key objectives in the Improvement Plan include: To improve outcomes for all learners; To increase the percentage of outstanding lessons; and To ensure that all members of the school community are Ofsted ready. Alongside the School Improvement Plan is the age range change timeline, plan and objectives to prepare the Academy, for September Public Benefit The Market Bosworth School is a mixed comprehensive school that offers an excellent and educational environment for over 650 students. Our successes are built upon the efforts of a highly qualified, hard-working and enthusiastic staff, well-motivated students and very supportive parents. Our excellence in providing outstanding teaching and learning with our students has led us to be recognised by Ofsted as outstanding in our last two Ofsted inspections (July 2009 and May 2012). The school has a very high quality pastoral care system and our School Council involves the students in the running of the school. The Market Bosworth School is a focus for wider community educational activities, working closely with our local partners in education and business to ensure that the Academy is at the centre of its community. The Market Bosworth School is part of the Bosworth Educational Partnership, other members include all the feeder Primary schools, the partnership provides collaboration and support for purchasing, teaching and learning, transitional activities between key stages and business management. We value highly all contact with parents since we see a successful education being a partnership between parents, students and the Academy. By working together we are able to meet our aim of ensuring that all who Page 5

8 (A Company Limited by Guarantee! TRUSTEES 8 REPORT (continued) come to The Market Boswotth School will find ft challenging, stimulating, caring and a happy place to be and will enjoy their time here. Students at The Mattel Bosworth School are able to participate in a wide variety of clubs, trips and activities as well as The Sports Leadership Award Schemes. The Academy Trust Trustees have complied with their duty in section 4 of the Charities Act 2006, to have due regard to tie guidance on public benefit published by the Charity Commission in exercising their powers or duties. In particular the Trustees consider how planned activities will contribute to tie aims and objectives they have set The Academy has provided a fully comprehensive education to all students in its care. It fully complies with all statutory guidance arid seeks to support tts wider educational objectives via a strong community role. STRATEGIC REPORT Achievements and Performance KEY STAGE THREE PUPIL GROUP ANALYSIS: (4016) Source: DfE Datafeeds (KS3) and Fischer Family Trust (Prior Attainment). Highlighting shows outcomes which are predominately 5% higher or lower than Leicestershire establishments. English two ievt All pupils All pupils Gender : emale FSM Free school Meal ambtty) Free school meal eligible Mot free school meat eligible = SM Ever (FSM eligible in the past six) Free school meal eligible at some point Mever free school meal eligible Pupil Premium Pupil (FSM Ever 6 and) 3 opil Premium Pupil Mot a Pupil Premium Pupil BME (Blade or Minority Ethnicity) Stack or Minority Ethnicity White British _.;s 'fi 5.3% 84,8% 184.8% The Core Subject remain significantly above the 2013 National Averages in terms of Level 5+, 6+, 7+ and 2 levels progress. The Average KS3 Point Score achieved by students is consistently above national and Leicestershire average (TMBS is / Points from 2011 to 2014, Leicestershire is 38.2/ 38.8 / 39.3 Points from 2011 to 2014). AH KS3 TA levels are robustly moderated against other Local Authority schools and our own previous GCSE Page 6

9 TRUSTEES' REPORT (continued) successes. The proportion of students achieving 2 levels of progress in Maths and English is consistently strong and significantly higher than National and Leicestershire averages. From 2011 to 2014 the percentage making 2 levels of progress averages 88.1% in English and 85.8% in Maths. Presently there will be no more National data collected for KS3, therefore we Mil make future comparison with the Local Authority only, which has consistently been above the National Average. The Loral Authority will still collect the KS3 level data at the request of the schools in the Local Authority. The Core subjects remained above the Local Authority average in all the key indicators and significantly above the FFTD expectations for the cohort. Student Premium students achieve exceptionally well. On average a greater number of our student premium students have made 2 levels of progress than Leicestershire students in both Maths and English every year for the last 3 years. In comparison with our own non student premium students, the percentage gap making 2 levels of progress has narrowed from -6.7% to -1.7% in English and -3.8% to +5.2% in Maths. In the majority of Foundation Subjects, there has been a rise in achievement in terms of level 5+, 6+ and 7+. 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. Key Performance Indicators The main financial performance indicator is the level of reserves held at the Balance Sheet date. This shows the management of spending against the General Annual Grant (GAG). 97,000 was carried forward representing 3.5% of GAG. As funding is based on student numbers this is also a key performance indicator. Student numbers for 2013 were 647, an increase of 41 compared to The number of students will rise again considerably for September 2014 as the age range changes to incorporate KS4 students. Another key financial performance indicator is staffing costs as a percentage of GAG. For 2014 this was 94%. Financial Review The majority of the Academy's income is obtained from the Department for Education (DfE) via the Education Funding Agency (EFA) in the form of recurrent grants, the use of which is restricted for particular purposes. Such grants and all associated expenditure are shown as restricted funds in the Statement of Financial Activities for the year ending 31 August The Academy also receives grants for fixed assets from the DfE and such grants when spent are shown in the Statement of Financial Activities in the restricted and fixed asset fund. The restricted fixed asset fund balance is reduced by annual depreciation charges over the expected useful life of the assets concerned. The Assets, Liabilities and Funds associated with the Governing Body of The Market Bosworth School were transferred from Leicestershire County Council to The Market Bosworth School Academy Trust on 1 May Land and Buildings were professionally valued on 1 May 2012 at 7,341,000 Page 7

10 TRUSTEES' REPORT (continued) The Academy has taken on the deficit in the Local Government Pension Scheme in respect of its support staff transferred on conversion. The deficit is incorporated within the Statement of Financial Activity with details in note 24 to the financial statements. Key financial policies adopted or reviewed during the year include the finance Policy and the Finance Regulations which lay out the framework for financial management, including financial responsibilities of the Governing Body, the Principal, managers, budget holders arid staff, as well as delegated authority for spending. Other policies include Charges and Lettings, Asset Management, Whistle Blowing and Risk Management policy. Trustees have adopted the Internal Audit Systems Check carried out by the Responsible Officer (a Trustee). Three visits have been undertaken during this period, to ensure the necessary policies and procedures are in place as specified in the Academies Financial Handbook. A report was received by Full Governors. An interim audit was carried out in July 2014 by our auditors, MHA Maclrrtyre Hudson. During the period ending 31 August 2014 total expenditure of 3,655,000 was more than covered by grant funding together with other incoming resources. Financial and Risk Management Objectives and Policies The Academy has agreed a Risk Management Policy and a Risk Register. These have been discussed by Trustees and include the financial risks to the Academy. The Risk Register will be formally reviewed annually. The Academy manages its risks appropriately. We consider that risks such as tie uncertainty over the LGPS deficit and future recurrent funding provision possibly due to the introduction of a national funding formula and the changes to the funding formula due to the age range change for some schools in Leicestershire, will feature in the financial risk register as the main areas of concern. Principal Risks and Uncertainties The Academy Trust has undertaken a financial risk assessment based on potential key risks identified as: Not operating within its budget and running a deficit; Changes In funding; Inappropriate or insufficient financial controls and systems; Fraudulent activity; and Financial commitments made without adequate authorisation. The key controls used by the Academy to reduce risk include: Detailed terms of reference for all committees; Formal agendas for the Academy Board and committees; Schemes of delegation and formal financial regulations; Formal written policies; and Clear authorisation and approval levels. Reserves Policy The Trustees need to formalise a Reserves Policy. It is intended that the Trustees will review tie reserve levels of the Academy annually. This review will encompass the nature of income and expenditure streams, tie need to match income with commitments and the nature of reserves. The level of unrestricted free reserves at the end of the period ending 31 August 2014 was 37,000. Page 8

11 TRUSTEES' REPORT (continued) Investment Policy Investments will be made only in accordance with written procedures approved by the Governing Body. All investments will be recorded in sufficient detail to identify the investment and to enable the current market value to be calculated. The information required will normally be the date of purchase, the cost and a description of the Investment. Ml funds held by the school as at the 31 August 2014 were in an interest bearing account with HSBC Bank Pic. Plans for Future Periods The Academy is changing its age range to provide education. This will start with our first group of Year 10's in September 2014, and Year 11's September A new key stage, a new chapter. The plans for the very near future are for new classrooms, new staffing levels, additional resources and an excellent KS3 and KS4 curriculum to provide students with the best opportunities possible, to ensure they reach their highest potential. The Academy will strive to continue to provide outstanding education and improve the levels of performance of its students at all levels. The Academy will continue to aim to attract high quality teachers and support staff in order to deliver its objectives. The Academy will continue to wort in partnership with local schools to encourage a smooth transition for students through the key stages and improve the educational opportunities for students in the wider community. Funds held as Custodian Trustee on behalf of others The Academy Trust or its Governors are not acting as custodian trustees on behalf of others. DISCLOSURE OF INFORMATION TO AUDITOR Each of the persons who are Trustees at tie 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 auditor is 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 auditor is aware of that information. This report, incorporating the Strategic Report, was approved by order of the Board of Trustees, as the company directors, on 10 December 2014 and signed on the board's behalf by: E Herd Chair of Trustees S Wilson Accounting Officer Page 9

12 GOVERNANCE STATEMENT SCOPE OF RESPONSIBILITY As Trustees, we acknowledge we have overall responsibility for ensuring that The Market Bosworth 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 Principal, as Accounting Officer, for ensuring financial controls conform with the requirements of both propriety and good financial management and in accordance with the requirements and responsibilities assigned to it in the funding agreement between The Market Bosworth 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 Trustees' responsibilities statement. The Board of Trustees has formally met 5 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 E Herd, Chair 5 5 K De Fraja 3 5 J Perry 4 5 P Talbot, Vice Chair 4 5 W Moore, Staff Trustee 4 5 D Hill, Staff Trustee 5 5 M Kennedy 4 5 F Wilson 4 5 D Winterbottom 5 5 S Maichercyz 4 5 R Townsend, Staff Trustee 4 5 J Rowland, Staff Trustee 2 5 R Wood 2 5 D Hickie 3 5 S Wilson, Principal (appointed 26/8/2014) 0 0 J Hemingway, Principal (resigned 26/8/2014) 5 5 J Stokes 2 5 The composition of the Governing Body has been reasonably stable since becoming an Academy. The Leadership and Management Committee is a sub committee of the main Governing Body. Its purpose is to, on behalf of the full Governing Body, work with the Academy's senior leadership team to set the Academy's financial priorities, decide how the Academy's delegated budget should be spent, monitor the annual budget, ensuring the budget is being managed effectively and the Academy is meeting its statutory obligations. Page 10

13 GOVERNANCE STATEMENT (continued) Attendance at meetings in the year was as follows: Trustee Meetings attended Out of a possible D Wintertoottom 4 4 P Talbot 4 4 K De Fraja 4 4 J Herd 4 4 F Wilson 4 4 M Kennedy 4 4 D Hickie 0 1 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 The Market Bosworth School for the year 1 September 2013 to 31 August 2014 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 2013 to 31 August 2014 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 Leadership and Management 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;ar»d identification and management of risks. The Governing Body has considered the need for a specific internal audit function and has appointed a Trustee to carry a series of Internal Audit System Checks in a Responsible Officer role, who carry out checks 3 times a year. This list of checks was agreed by the Leadership and Management Committee. Page 11

14 GOVERNANCE STATEMENT (continued) REVIEW OF EFFECTIVENESS As Accounting Officer, the Principal has responsibility for reviewing the effectiveness of the system of internal control. During the year in question the review has been informed by: the work of the externa! auditor; 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 Leadership and Management Committee and a plan to address weaknesses and ensure continuous improvement of the system is in place. Approved by order of the members of the Board of Trustees on 10 December 2014 and signed on its behalf, by: E Herd Chair of Trustees S Wilson Accounting Officer Page 12

15 STATEMENT ON REGULARITY, PROPRIETY AND COMPLIANCE As Accounting Officer of The Market Bosworth School I have considered my responsibility to notify the Academy Board of Trustees 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. I confirm that 1 and the Academy Board of Trustees are able to identify any material, irregular or improper use of funds 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. 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. S Wilson Accounting Officer 10 December 2014 Page 13

16 TRUSTEES' RESPONSIBILITIES STATEMENT The Trustees (who act as governors of The Market Bosworth 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 published by the Education Funding Agency, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law,. 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 the year. 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 Board of Trustees on 10 December 2014 arid signed on its behalf by; E Herd, Chair Chair of Trustees Page 14

17 INDEPENDENT AUDITOR'S REPORT TO THE BOARD OF TRUSTEES OF THE MARKET BOSWORTH SCHOOL We have audited the financial statements of The Market Bosworth School for the year ended 31 August 2014 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 2014 issued by the Education Funding Agency. This report is made solely to the Academy's Trustees, 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 Trustees those matters we are required to state to them in an Auditor's 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 Trustees for our audit work, for this report, or for the opinion we have formed. RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND AUDITOR 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 31 August 2014 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 2014 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 15

18 INDEPENDENT AUDITOR'S REPORT TO THE BOARD OF TRUSTEES OF THE MARKET BOSWORTH 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. Ayvw-A rvv-o^ovvv ve. Robert Nelson BA FCA DChA (Senior Statutory Auditor) for and on behalf of MHA Maclntyre Hudson Chartered Accountants Statutory Auditors 11 Merus Court Meridian Business Park Leicester LE19 1RJ 17 December 2014 Page 16

19 INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO THE MARKET BOSWORTH SCHOOL AND THE EDUCATION FUNDING AGENCY in accordance with the terms of our engagement letter dated 6 September 2013 and further to the requirements of the Education Funding Agency (EFA) as included in the Academies Accounts Direction 2013 to 2014, we have carried out an engagement to obtain limited assurance about whether the expenditure disbursed and income received by The Market Bosworth School during the year 1 September 2013 to 31 August 2014 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 The Market Bosworth School and EFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to The Market Bosworth 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 The Market Bosworth School and EFA, for our work, for this report, or for the conclusion we have formed. RESPECTIVE RESPONSIBILITIES OF 'S ACCOUNTING OFFICER AND THE REPORTING ACCOUNTANT The Accounting Officer is responsible, under the requirements of The Market Bosworth School's funding agreement with the Secretary of State for Education dated 1 May 2012, and the Academies Financial Handbook extant from 1 September 2012, for ensuring that expenditure disbursed and income received is applied for the purposes intended by Parliament and the financial transactions conform to the authorities which govern them. Our responsibilities for this engagement are established in the United Kingdom by our profession's ethical guidance and are to obtain limited assurance and report in accordance with our engagement letter and the requirements of the Academies Accounts Direction 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 31 August 2014 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 2014 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. The work undertaken to draw our conclusions includes: a review of the objectives and activities of the academy, with reference to the income streams and other information available to us as auditors of the academy testing of a sample of grants received and other income streams testing of a sample of payments to suppliers and other third parties testing of a sample of payroll payments to staff evaluating the internal control procedures and reporting lines, and testing as appropriate Page 17

20 INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO THE MARKET BOSWORTH SCHOOL AND THE EDUCATION FUNDING AGENCY (continued) reviewing the Minutes of the meetings of the Governing Body and other evidence made available to us, relevant to our consideration of regularity CONCLUSION In the course of our work, nothing has come to our attention which suggests that in all material respects the expenditure disbursed and income received during the year 1 September 2013 to 31 August 2014 have not been applied to purposes intended by Parliament and the financial transactions do not conform to the authorities which govern them. /N/VVWV Aaxk_AaA- v. Robert Nelson BA FcA DChA (Reporting Accountant) MHA Maclntyre Hudson Chartered Accountants Statutory Auditors 11 Merus Court Meridian Business Park Leicester LE19 1RJ 17 December 2014 Page 18

21 STATEMENT OF FINANCIAL ACTIVITIES (incorporating income and expenditure account and statement of total recognised gains and losses) INCOMING RESOURCES Note Unrestricted funds Restricted funds Restricted fixed asset funds Total 16 month funds period ended 31 August Incoming resources from - generated funds: Assets transferred on conversion 2 Donations 2 Activities for generating funds 3 Funding for the academy trust's educational operations , ,840 6, ,392 TOTAL INCOMING RESOURCES 267 3, ,150 11,448 RESOURCES EXPENDED Costs of activities for generating funds 5 Charitable activities 6 Governance costs 7 Other resources expended , , , TOTAL RESOURCES EXPENDED , ,655 4,254 NET INCOMING/(OUTGOING) RESOURCES BEFORE TRANSFERS, CARRIED FORWARD 28 (70) ,194 Page 19

22 STATEMENT OF FINANCIAL ACTIVITIES (continued) NET INCOMING I (OUTGOING) RESOURCES BEFORE TRANSFERS, BROUGHT FORWARD Note Unrestricted funds Restricted funds (70) Restricted fixed asset funds Total 16 month funds period ended 31 August ,194 Transfers between funds 18 (96) 96 NET INCOMEI(EXPENDITURE) FOR THE PERIOD (166) ,194 Actuarial losses on defined benefit pension schemes (305) (305) (99) NET MOVEMENT IN FUNDS FOR THE PERIOD 28 (471) ,095 Total funds at 1 September 2013 (329) 7,415 7,095 TOTAL FUNDS AT 31 AUGUST (800) 8,048 7,285 7,095 All of the Academy's activities derive from continuing operations during the above two financial periods. The Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 23 to 42 form part of these financial statements. Page 20

23 REGISTERED NUMBER: BALANCE SHEET AS AT 31 AUGUST 2014 Not FIX..ASSETS Tangible assets- 15 8,048 7,415 CURRENT ASSETS Debtors Cash at bank CREDITORS; amounts falling due within one year 17 (395) (182) NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES 8,224 7,691 Defined benefit pension scheme liability 24 (939) (596) NET ASSETS INCLUDING PENSION SCHEME LIABILITY 7,285 7,095 FUNDS OF THE ACADEMY Restricted funds: Restricted funds Restricted fixed asset funds 18 8,048 7,415 Restricted funds excluding pension liability 8,187 7,682 Pension reserve (939) (596) Total restricted funds 7,248 7,086 Unrestricted funds TOTAL FUNDS 7,285 7,095 The financial statements were approved by the Trustees, and authorised for issue, on 10 December 2014 and are signed on their behalf, by: f-iir Chair of Trustees The notes on pages 23 to 42 form part of these financial statements. Page 21

24 CASH FLOW STATEMENT Note Net Gash How from operating activities 20 (196) 396 Capital expenditure and financial investment 21 (98) (12) Cash transferred on conversion to an Academy Trust - 8 (DECREASE)/INCREASE IN CASH IN THE YEAR (292) 392 RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS (Decrease)/lncrease in cash in the year (292) 392 MOVEMENT IN NET FUNDS IN THE YEAR <292) 392 Net funds at 1 September NET FUNDS AT 31 AUGUST The notes on pages 23 to 42 form part of these financial statements. Page 22

25 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. 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 2014 issued by EFA, applicable accounting standards and the Companies Act A summary of the principal accounting policies, which have been applied consistenty, except where noted, is set out below. 1.2 Fund accounting Unrestricted income funds 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 funds 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 funds comprise all other restricted funds received and include grants from the Department for Education and the Education Funding Agency. 1.3 Incoming resources All incoming resources are included in the Statement of financial activities when the academy has entitlement to the funds, 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 funds 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 sheet as restricted funds. 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. Page 23

26 NOTES TO THE FINANCIAL STATEMENTS 1. ACCOUNTING POLICIES (continued) 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 funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds. 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. 1.5 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 one year from the date of approval of the financial statements. 1.6 Tangible fixed assets and depreciation AH 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 activfties 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. Tangible fixed assets are stated at cost or valuation less depreciation. Depreciation on other tangible fixed assets is provided at rates calculated to write off the cost or valuation of those assets, less their estimated residua! value, over their expected useful lives on the following bases: Long leasehold property Property improvements Fixtures and fittings Computer equipment 2% Straight line 2% Straight line 10% Straight line 20% Straight line The value of land included in the long leasehold property is not being depreciated. Page 24

27 NOTES TO THE FINANCIAL STATEMENTS 1. ACCOUNTING POLICIES (continued) 1.7 Operating leases Rentals under operating leases are charged to the Statement of financial activities on a straight line basis over the lease term. 1.8 Taxation The Academy is considered to pass the tests set out in Paragraph 1 Schedule 8 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. 1.9 Pensions Retirement benefits to employees of the Academy are provided by the Teachers* Pension Scheme ("TPS") and the Local Government Pension Scheme ("LGPS"). These are defined benefit schemes and the assets are held separately from those of the Academy. The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees' working lives with the Academy in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quinquennial valuations using a prospective benefit method. As stated in note 24, the TPS is a multi-employer scheme and the Academy is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. The TPS is therefore treated as a defined contribution scheme and the contributions recognised as they are paid each year. The LGPS is a funded scheme and the assets are held separately from those of the Academy in separate trustee administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit method and discounted at a rate equivalent to tie current rate of return on a high quality corporate bond of equivalent term and currency to the liabilities. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The amounts charged to operating surplus are the current service costs and gains and losses on the settlements and curtailments. They are included as part of staff costs. Past service costs are recognised immediately in the Statement of financial activities if the benefits have vested. If the benefits have not vested immediately, the costs are recognised over the period vesting occurs. The expected return on assets and the interest cost are shown as a net finance amount of other finance costs or credits. Actuarial gains and losses are recognised immediately in other gains and losses. Page 25