The trustees present their annual report together with the accounts and auditor's report of the charitable company for the year 1 September 2020 to 31 August 2021. The annual report serves the purposes of both a trustees' report, and a directors' report under company law.
The trust is a company limited by guarantee and an exempt charity. The charitable company's memorandum and articles of association are the primary governing documents of the trust.
The trustees of Abbey Academies Trust are also the directors of the charitable company for the purposes of company law. Details of the trustees who served during the year, and to the date these accounts are approved, are included in the Reference and Administrative Details on page 1.
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.
From the articles to provide indemnity insurance to cover the liability of governors which by virtue of any rule of law should otherwise attach to them in respect of any negligence, breach of trust or breach of duty of which they may be guilty in relation to the academy trust. Provided that any such insurance shall not extend to any claim arising from any act or omission, which the trustees knew to be in breach of trust or breach of duty, and provided also that any such insurance shall not extend to costs of any unsuccessful defence to a criminal prosecution against the trustees in their capacity as trustees.
Subject to Articles 48 - 49 and 64, the academy trust shall have the following trustees:
a. Not less than 9 trustees, appointed under Article 50
b. Up to 2 Staff Governors, if appointed under Article 50A
c. 2 Parent Governors appointed under Articles 53-58. A Parent Governor must be a parent of the pupil at the Academy at the time when he is elected;
d. The Principal;
e. Any Additional Governors, if appointed under Article 62, 62A or 68A; and
f. Any Further Governors, if appointed under Article 63 or Article 68A.
The Academy Trust may also have any Co-opted Governor appointed under Article 59.
The term of office for any Governor (other than Co-opted Governors under Article 59) shall be 4 years, save that this time limit shall not apply to the Principal, the Diocesan Bishop, the Incumbent, the Area Dean. Subject to remaining eligible to be a particular type of Governor, any Governor may be re-appointed or re-elected.
A Local Governing Board (LGB) for each individual school is in place to undertake the day to day running of each school in line with the agreed Scheme of Delegation.
The training and induction provided for new trustees depends on their existing experience. Where necessary induction provides training on charity and educational legal and financial matters. All trustees and governors are provided with copies of terms of reference, policies, procedures, minutes, accounts, budgets, plans and other documents that they will need to undertake their role as trustees and governors.
The organisational structure of the trust consists of four levels: The members, trustees, governors and the senior leadership team. The aim of the organisational structure is to devolve responsibility and encourage involvement in decision making at all levels.
The trust is governed by the board of trustees which delegates functions as appropriate to the local governing body of each academy.
The trustees are responsible for all areas covered under the funding agreements and all areas of statutory responsibility appertaining to the trust which include setting general policy, adopting an annual improvement plan for both academies and budget for the trust, monitoring the academies by the use of budgets and making major decisions about the direction of the academy trust, capital expenditure and senior staff appointments.
The governors of each academy are responsible for monitoring the performance of their academy, focusing on academic standards and leadership. This includes regular scrutiny and challenge of the Executive Headteacher and senior leadership team. The Chief Financial Officer is the lead officer responsible for finance and reports to the local governing body on financial performance against delegated budget levels.
The Executive Headteacher and senior leadership team at each academy are responsible at an executive level for implementing the policies as agreed by the trustees and any local operating procedures as approved by the local governing bodies. As a group the senior leaders are responsible for the authorisation of spending within agreed budgets and the appointment of staff.
The policy for teacher’s pay sets out the framework for making decisions on teachers’ pay. It has been developed to comply with current legislation and the requirements of the School Teachers’ Pay and Conditions Document (STPCD) and has been consulted on with staff.
The policy for support staff pay sets out the framework for making decisions on support staff pay. It has been developed to comply with current legislation and has been consulted on with staff.
In adopting these pay policies the aim is to:
maintain the quality of teaching and learning at each academy.
support the academy improvement plans.
underpin the trust’s appraisal policy.
ensure that all staff are valued and appropriately rewarded for their work contribution in the trust.
ensure staff are well motivated, supported by positive recruitment and retention policies and staff development.
demonstrate that decisions on pay are fair and equitable and recognise the principle of equal pay for like work and work of equal value.
provide flexibility to recognise individual staff performance linked to pay decisions.
Pay decisions at the trust are made by the Finance, Pay & Audit Committee in consultation with the Executive Headteacher.
Transactions with related parties are detailed in note 26.
The principal objective and activity of Abbey Academies Trust is to provide education for pupils of different abilities between the ages of 2 and 11 years and to further support the national and local school improvement agenda.
Abbey Academies Trust is a Multi Academy Trust (MAT) which includes Bourne Abbey Church of England Primary Academy, Bourne Elsea Park Church of England Primary Academy and Colsterworth Church of England Primary School.
The Executive Headteacher of Abbey Academies Trust leads the partnership of the three schools. Each academy has its own Head of School to oversee its day-to-day running. There has successfully been created a sense of shared identity and common purpose which also promotes and preserves each academy’s individual character and ethos.
As Church of England academies, pupils at Bourne Abbey, Bourne Elsea Park and Colsterworth are encouraged to strive for excellence in the core subjects, but to broaden their education, to embrace and develop the concepts of faith and spirituality, of hope and charity and to enable them to make informed decisions later in life as broad-minded and knowledgeable British and world citizens.
The Executive Headteacher is a National Leader (NLE) and Bourne Abbey is deemed a National Support School (NSS). Bourne Abbey as NLE/NSS works on an improvement agenda with other named schools which are often identified by the Local Authority, Diocese and DfE as being in need of support.
The main objectives of Abbey Academies Trust during the year ended 31 August 2020 are summarised below.
to ensure every pupil enjoys consistently high quality education and that resourcing, tuition and care meets their individual needs to achieve this.
to continue to raise the standard of educational achievement and attainment for all pupils.
to improve the effectiveness of both academies by keeping the curriculum and organisational structure under continual review.
to provide value for money for the funds expended.
to comply with all appropriate statutory safeguarding and curriculum requirements.
to maintain close links with the local community including other local schools.
to have a role in sharing and developing good practice and training new teachers.
to conduct Abbey Academies Trust’s business in accordance with the highest standards of integrity, probity and openness.
The main strategy across Abbey Academies Trust, which includes both academies, is encompassed in our mission statement which is ‘Striving for Excellence – Caring for All within a loving and caring Christian environment’. To this end the activities provided include:
being proactive in trying to ensure that all pupils’ abilities and preferred learning styles are identified with appropriate learning and teaching strategies employed across all areas of the curriculum.
quality learning opportunities for all pupils to ensure high levels of attainment and achievement in the core subjects and across a broad curriculum, including day/residential visits and many after school sporting, creative, environmental, scientific and leisure opportunities.
a programme of Personal, Social and Health Education which includes Behaviour and Discipline procedures.
ensuring all appropriate Safeguarding Procedures are in place and regularly monitored to ensure maximum effectiveness.
The trustees have complied with their duty to have due regard to the guidance on public benefit issued by the Charity Commission in exercising their powers and duties.
Abbey Academies Trust (previously Bourne Abbey Church of England Primary Academy) is in its tenth year of operation as an academy and continues to set strategic goals related to achievement, attainment, engagement and provision. These goals are monitored closely by the trust body.
Unlike in previous years, we cannot provide a data picture based on statutory tests for the academic year 2020-2021 due to Covid-19.
We have an internal data picture for 2020-21, which includes careful monitoring of those in receipt of Pupil Premium. Rigorous analysis of the data from key assessment points throughout the year has been undertaken. From this, clear provision maps were written, identifying vulnerable groups, in preparation for the children’s return in September 2021.
During lockdown, all pupils were provided with high quality home learning which was monitored by teachers and members of the Senior Leadership Team. For those pupils who were able to return to school on March 8 th , learning resumed in class bubbles which enabled the children to progress academically, whilst ensuring their mental health and wellbeing needs were also met.
Provision is in place for children to ‘Catch-Up’ and diminish any difference as a result of school closure due to COVID-19. Regular Pupil Progress Meetings will be held for any pupils not making expected progress. A key focus will be all PP pupils, including those who are more able. Please see our Pupil Premium Strategy Statement for 2021-2022 which will be on our school website after it has been agreed by the Local Governing Body in October 2021. Attendance of PP pupils will again also be closely monitored and children who are absent due to Covid-19, or if school goes into lock down, will receive high quality online learning and pastoral support for those who are vulnerable. External LA moderation of Year 1 across the Trust in the summer term praised our effective curriculum, learning and teaching and flying high/catch up provision. Indeed, comments were made by the assessors that our children are where they should be despite school closure including our GDS pupils.
The Trust also has a ‘Catch-Up’ or ‘Flying High’ plan. We refer to these strategies and approaches as encouraging children and staff to: ‘Fly High.’ This is in keeping with our Trust’s ethos and will help ensure that our staff, children and parents/carers see such support in a positive light and as an opportunity to achieve and improve.
Successful year at all three academies navigating unprecedented and challenging coronavirus times including another school closure
Successful Ofsted inspection at Bourne Abbey (requested by Executive Head teacher) in July 2021. ‘Good’ in all areas – see report
‘Excellent’ SIAMs inspection judgement for Colsterworth in February 2020, which is a stunning achievement as the school had only been in Abbey Academies Trust for 18 months following an ‘Inadequate’ Ofsted judgement in 2017. Successful monitoring reviews by the Diocese in November and December 2020 at all three schools
New leadership structure in the Trust -adds high quality capacity for school improvement and succession planning
Effective CPD continued throughout the academic year, even during school closure, having a positive impact on improving outcomes
Taken on board new directives from the government, ensuring at least statutory compliance in PREVENT
Successful Local Authority Safeguarding Audit at Colsterworth (Feb 2020) and Bourne Abbey (June 2021), reflects outstanding Trust wide practice.
Fundamental British Values are fully embedded throughout BAPA, BEPPA and at Colsterworth school. Pupils can articulate these, they are interwoven into the curriculum and linked with our Christian Values. Plans made for further development in 2021-2022
Local Authority, Diocese and National College continue to broker our N:E/NSS S2S support BAPA and BEPPA took part in Early Careers Framework pilot 2020-2021. We received hugely positive feedback from Keystone Teaching Alliance regarding the engagement of the NQT and Induction Tutor
Linda Orme (Deputy Head at BAPA) has qualified as a Local Authority KS2 writing moderator
Assessment and tracking of core subjects and non-core subjects introduced throughout the Trust continue to be refined and enhanced. Adaptions have been made throughout the year, even during COVID-19 school closure, as a work in progress and in light of exciting developments to our already dynamic and creative curriculum (See website for more info)
Maths Mastery has had a huge impact on maths throughout the school. Megan Shears, Danielle Peck, Jessica Schaffer, Sarah Croxall and Luke Revell (AAT maths leaders) have worked with the Maths Hub and through effective dissemination and WAGOLL have provided support and guidance for learning and teaching across the Trust. Danielle Peck is maths SLE
Positive reinforcement of Christian Values, Christian narrative throughout key policies and a drive and commitment from all stakeholders to ensure the distinctiveness and effectiveness of our schools as Church of England schools are excellent
Outcomes in Spelling, Punctuation and Grammar closely monitored throughout the year. Embedding use of Active English has continued to have a very positive effect on outcomes in Grammar. Introduction of Active Spelling across AAT from September 2021
BAPA and BEPPA taking part in Voice 21 Oracy project in 2020-2021 and 2021-2022, whereby oracy is given a continued high profile across school. The Voice 21 be nchmarks provide a framework to identify, guide and empower teachers who are developing and refining their oracy practice, within their own classroom and as part of a school-wide approach
UNICEF Rights Respecting Schools – BAPA were reaccredited with the Gold award in 2019 (See report). Colsterworth achieved their Bronze and Silver awards by starting their UNICEF RRS journey with support from BAPA and BEPPA. BEPPA have applied for UNICEF Gold award and the assessment is in October 2021. BAPA will be reassessed in the summer of 2022
BAPA have submitted an application for Arts Mark Platinum award
Both BAPA and BEPPA achieved their Eco School’s Green Flag awards in 2019 and their second Green Flag awards in December 2020 and March and 2021. This is an amazing achievement especially through Covid-19 times and has empowered our pupils to be ‘Agents of Change’. Colsterworth have also embarked on this award and achieved their Bronze and Silver awards in 2020 and 2021. In July 2021 they also achieved their Green Flag award.
BAPA received their International School Award (ISA) reaccreditation in July 2021.
A huge investment in iPads at Colsterworth including staff CPD following the success of I Pads at BAPA and BEPPA and further investment at both our Bourne schools (See Ofsted report, lesson observations, MSRs for planning/work scrutiny and data/tracking for impact on raising standards). iPads instrumental in the success of remote learning during lockdown and 72 iPads loaned to vulnerable pupils during this time
Investment and development of new websites for BAPA and BEPPA schools in AAT which were launched throughout 2019-2020 – we have continued to raise the school’s profile online through social media. All schools set up Facebook pages at the start of school closures to ensure maximum communication with parents and carers
After making appropriate enquiries, the trustees have a reasonable expectation that the trust has adequate resources to continue in operational existence for the foreseeable future. For this reason the trustees continue to adopt the going concern basis in preparing the accounts. Further details regarding the adoption of the going concern basis can be found in the statement of accounting policies.
The academy trust held fund balances at 31 August 2021 of £5,841,572 comprising £5,530,155 of restricted funds and £311,417 of unrestricted funds. Of the restricted funds, £8,112,722 is represented by tangible fixed assets. The pension reserve which is considered part of restricted funds was £2,847,000 in deficit.
Whilst an element of education funding is ring-fenced, in real terms per pupil funding is reducing year on year. Increases in staff salaries and pension contributions are not reflected in GAG income.
Key performance Indicators:
The trust is on a sound financial footing and follows strict guidelines outlined in its best value statement. All financial decisions are based on providing ‘quality provision’ and prioritising this to levels of funding available and expected over a three year forecast.
The trust keeps a regular overview of its finances and details reports to trustees and governors.
The trust has appointed Rawlinsons to perform the Responsible Officer role. The Responsible Officer meets regularly with the Chief Financial Officer and the Executive Headteacher in line with good practice and academy regulations.
The trustees and governors regularly monitor, review and approve budget statements and plans. Trustees' and governors' advice and approval is always sought for major financial commitments.
Key budget allocations and spending decisions are all linked to the Academy Improvement Plan. However, if a new initiative that will improve the academy becomes available, it will be reviewed by all members of the school community, including the financial implications and either approved or not. The trustees have the final approval. The unrestricted funds can be used to offset the financial implications of an initiative and funds raised by the PTFA can also be allocated. There are mini budgets within the main budget, i.e. Professional Development, Phase allocations.
The trustees fully understand what Abbey Academies Trust does well and where it could improve. They have achieved this understanding by receiving clear information from the Executive Headteacher/Senior Leaders/Local authority and national sources in the form of documentation, training, discussions at meetings, and by their own visits to the academies. As a result, they are informed about what happens in school, how this can be compared and benchmarked locally and nationally and are able to provide the necessary support and challenge in making strategically important decisions.
The trustees review the reserves level of the trust annually. The review takes into account the nature of the income and expenditure streams. The trustees have determined that the appropriate level of reserves is £200,000 at trust level and the equivalent of one month’s operating expenditure for each academy. The current level of reserves is below this figure but a five year plan is in place to achieve this required level.
The academy is also confident that it will meet the required pension contributions from its projected income without significantly impacting on its planned level of charitable activity. It continues to calculate its 'free' or general unrestricted reserves without setting aside designated reserves to cover the pension liability.
Under the Memorandum and Articles of Association, the trust has the power to invest funds not immediately required for its own purposes, in any way the trustees see fit. The organisation has a positive cash balance to cover eventualities and unforeseen expenses. The banking facilities are reviewed on a regular basis.
The trustees are responsible for identifying risks faced by the trust, establishing procedures to mitigate these risks, and ensuring that employees are aware of the procedures and of the implications of failing to implement them. They are satisfied that these procedures are consistent with the guidelines issued by the Charity Commission.
The Student Council vote on and organise fundraising events during the year. The trust does not use professional fundraisers or involve commercial participants. There have been no complaints about fundraising activity this year.
Abbey Academies Trust will continue to strive and improve levels of achievement and attainment for all its pupils whilst providing a high quality caring and nurturing educational environment for all and working in pursuit of community cohesion. The trust also deems its work in pursuit of sharing and developing good practice and training new teachers through the work of Bourne Abbey as NLE/NSS to be a core part of its activity.
The trust aims to provide opportunity to enhance the educational environment in the academic year 2021/22 by;
Early Years Foundation Stage
To ensure the children’s mental health and wellbeing needs are met, especially in light of a different transition due to COVID-19.
Throughout EYFS provision, ensure vulnerable groups and those exceeding their age/stage of development are identified and supported in their next steps and develop their vocabulary and cultural capital.
To continue to regularly monitor the EYFS provision to ensure progression of knowledge, understanding and skills across the whole setting.
Further enhance outdoor learning provision across the EYFS setting.
Explore the new Early Years Framework in preparation for implementation in September 2021.
Quality of Education
Ensure intervention, provision and ‘catch-up’ is in place for the core areas of the curriculum due to COVID-19.
To focus on raising standards in oracy so that it positively impacts on all learning.
To continue to ensure that our curriculum supports the acquisition of core skills in English, Maths and IT, and is relevant to all our learners.
To further enrich our curriculum; through delivering a broad range of subjects within a curriculum rich in cultural capital; developing our whole school vision; curriculum model and implementation strategies.
To continue to enhance mathematics provision through developing understanding, knowledge and application of a mastery approach to teaching and learning.
To review Year 6 SATS preparation in order that all children reach their aspirational targets and full potential in light of COVID-19.
To continue to raise standards in all curriculum areas through the development of 21st Century ICT provision, teaching and learning.
To further raise the profile of sustainability and international work by making them an integral part of school life and in doing so, work towards Eco Schools Green Flag and the International School Award.
Personal Development, Behaviour and Attitudes
Ensure continued focus on the health and wellbeing of pupils and develop further the role of Mental Health and Wellbeing First Aiders.
Ensure the children’s mental health and wellbeing needs are met, especially in light of COVID-19. This will include rebuilding friendships and addressing and responding to issues related to coronavirus.
Ensure that children at all stages have opportunity to ask and discuss ‘big questions’ in order to develop an understanding that there are not always definite answers to spiritually challenging questions.
Continue to integrate the Understanding Christianity resource within the Religious Education curriculum so that children have more opportunities to develop their questioning skills.
Ensure our charity work, which extends globally and nationally, also has a focus on our locality so that children can see the impact that their efforts are having as agents of change.
To continue to develop the work of UNICEF in the Trust and to maintain ‘The Rights Respecting School Award’ - GOLD expectations.
Leadership and Management
To continue to provide leadership that is strong, of high quality, having high expectations, motivating all and communicating a vision and direction to everyone with a commitment to raising standards. This shared vision is then understood and articulated by ‘all’, for ‘all’.
Ensure we have clear Intent, Implementation and Impact for our curriculum and that our children are able to know more and remember more.
Develop the skills of subject leaders so that they have the maximum impact on the quality of learning and teaching in order to secure aspirational progress for all groups of learners.
To ensure understanding and compliance with regard to the Prevent Duty, including local issues, in order to further develop effective systems to keep pupils safe from the dangers of abuse, sexual exploitation, radicalisation and extremism.
Further empower subject leaders to evaluate and lead subject development, ensuring that their subject has clear knowledge and skills progression embedded, allowing children to achieve their personal best with consistently high quality work.
Leaders to ensure consideration of staff work-life balance and wellbeing and provide opportunities to canvas staff views.
These plans have been presented to the trustees and will be monitored throughout the year.
The trust and its trustees do not act as the custodian trustees of any charity.
In so far as the trustees are aware:
- there is no relevant audit information of which the charitable company's auditor is unaware; and
- the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
A resolution proposing that Azets Audit Services be reappointed as auditor of the charitable company will be put to the members.
The trustees' report, incorporating a strategic report, was approved by order of the board of trustees, as the company directors, on
As trustees, we acknowledge we have overall responsibility for ensuring that Abbey Academies Trust has an effective and appropriate system of control, financial and otherwise. However, such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives, and can provide only reasonable and not absolute assurance against material misstatement or loss.
The board of trustees has delegated the day-to-day responsibility to the Executive Headteacher, as accounting officer, for ensuring financial controls conform with the requirements of both propriety and good financial management and in accordance with the requirements and responsibilities assigned to it in the funding agreement between Abbey Academies Trust and the Secretary of State for Education. The accounting officer is also responsible for reporting to the board of trustees any material weaknesses or breakdowns in internal control.
The information on governance included here supplements that described in the Trustees' Report and in the Statement of Trustees' Responsibilities. The board of trustees has formally met 3 times during the year. Attendance during the year at meetings of the board of trustees was as follows:
The Finance, Pay and Audit committee is a sub-committee of the main board of trustees. Its purpose is to provide guidance and assistance to the Executive Headteacher and the board of trustees in all matters relating to budgeting and finance. Mr C Bates, a governor at one of the schools in the trust also sits on this committee.
Attendance at meetings in the year was as follows:
As accounting officer the Executive Headteacher has responsibility for ensuring that the trust delivers good value in the use of public resources. The accounting officer understands that value for money refers to the educational and wider societal outcomes achieved in return for the taxpayer resources received.
The accounting officer considers how the trust’s use of its resources has provided good value for money during each academic year, and reports to the board of trustees where value for money can be improved, including the use of benchmarking data where available. The accounting officer for the trust has delivered improved value for money during the year by:
Improving educational results
Ensuring that resources are directed where they are most needed and most effective in meeting educational requirements, for example by:
targeting resources in key subjects such as english and maths;
monitoring the needs of particular pupils including those in receipt of Pupil Premium Grant and Looked After Children PPG, and ensuring that the support they receive is relevant to them.
Staffing
the academy is proud of operating on a very carefully structured staffing establishment. The staffing structure is considered very closely and any opportunities to minimise excess staffing are explored and frequently implemented. It is acknowledged that staffing is the most costly area of expenditure and savings in this area are the most valuable;
Monitoring the performance of staff and ensuring the relevant action is taken to address weakness;
An extensive CPD programme is in place with the objective of enhancing teaching and learning across the curriculum.
Financial Governance and Oversight
the trust carries out regular monthly financial monitoring and the local governing bodies and board of trustees meet regularly. They receive regular reports, and ask relevant questions as recorded in the minutes;
regular financial monitoring is supported further by regular internal auditor reports from Bulley Davey.
Better purchasing:
exploring alternative purchasing options both on-line and direct through suppliers to find the best value;
implementing a tender process for significant purchases and/or contracts;
all contracts are reviewed on an annual basis to ensure they are fit for purpose and best value.
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 on-going process designed to identify and prioritise the risks to the achievement of trust 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 Abbey Academies Trust for the period 1 September 2020 to 31 August 2021 and up to the date of approval of the annual report and accounts.
The board of trustees has reviewed the key risks to which the trust 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 trust's significant risks that has been in place for the period 1 September 2020 to 31 August 2021 and up to the date of approval of the annual report and accounts. This process is regularly reviewed by the board of trustees.
The trust'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 Finance, Pay and Audit 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;
identification and management of risks.
The board of trustees has decided:
to buy in an internal audit service from Bulley Davey.
The RO's role includes giving advice on financial matters and performing a range of checks on the trust's financial systems. In particular the checks carried out in the current period included:
testing of purchase systems
testing of bank reconciliations
testing of fixed assets
testing of income
The auditor reports to the board of trustees through the audit committee on the operation of the systems of control and on the discharge of the financial responsibilities of the board of trustees, and annually prepares an annual summary report to the committee outlining the areas reviewed, key findings, recommendations and conclusions to help the committee consider actions and assess year on year progress.
As accounting officer the Executive Headteacher has responsibility for reviewing the effectiveness of the system of internal control. During the year in question the review has been informed by:
the work of the internal auditor;
the work of the external auditor;
the work of the executive managers within the trust 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 Finance, Pay and Audit committee and a plan to address weaknesses and ensure continuous improvement of the system is in place.
Approved by order of the board of trustees on
As accounting officer of Abbey Academies Trust, I have considered my responsibility to notify the trust board of trustees and the Education and Skills Funding Agency (ESFA) of material irregularity, impropriety and non-compliance with terms and conditions of all funding received by the trust, under the funding agreement in place between the trust and the Secretary of State for Education. As part of my consideration I have had due regard to the requirements of the Academies Financial Handbook 2020.
I confirm that I and the trust's board of trustees are able to identify any material irregular or improper use of funds by the trust, or material non-compliance with the terms and conditions of funding under the trust's funding agreement and the Academies Financial Handbook 2020.
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 ESFA.
The trustees (who are also the directors of Abbey Academies Trust for the purposes of company law) are responsible for preparing the trustees' report and the accounts in accordance with the Academies Accounts Direction 2020 to 2021 published by the Education and Skills Funding Agency, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
Company law requires the trustees to prepare accounts for each financial year. Under company law, the trustees must not approve the accounts 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 accounts, the trustees are required to:
select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP 2019 and the Academies Accounts Direction 2020 to 2021;
make judgements 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 accounts; and
prepare the accounts on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
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 that grants received from ESFA/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 accounts may differ from legislation in other jurisdictions.
Approved by order of the members of the board of trustees on 24 November 2021 and signed on its behalf by:
Opinion
In our opinion the accounts:
give a true and fair view of the state of the charitable company's affairs as at 31 August 2021 and of its incoming resources and application of resources, including its income and expenditure, f or the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
have been prepared in accordance with the requirements of the Companies Act 2006 ; and
have been prepared in accordance with the Charities SORP 2019 and the Academies Accounts Direction 2020 to 2021.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 'Auditor's responsibilities for the audit of the accounts' section of our report. We are independent of the trust in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the trust’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The trustees are responsible for the other information , which comprises the information included in the a nnual report other than the accounts and our auditor’s report thereon. Our opinion on the accounts does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the accounts or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
the information given in the trustees' r eport including the incorporated strategic report for the financial year for which the accounts are prepared is consistent with the accounts; and
the trustees' r eport including the incorporated strategic report ha s been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the trust and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' r eport , including the incorporated strategic report .
We have nothing to report in respect of the following matters in relation to which 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 accounts are not in agreement with the accounting records and returns; or
certain disclosures of trustees' remuneration specified by law are not made; or
As explained more fully in the s tatement of trustees' r esponsibilities, the trustees are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error.
In preparing the accounts , the trustees are responsible for assessing the trust’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company, or have no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these accounts.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below .
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of senior leadership, Governors/Trustees and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations including compliance with the Academies Accounts Directio n 2020 to 2021 issued by the Education and Skills Funding Agency;
Performing audit work over the recognition of grant income and the allocation of expenditure to funds;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
A further description of our responsibilities for the audit of the accounts is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 . Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an 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 charitable company and the charitable company 's members as a body, for our audit work, for this report, or for the opinions we have formed.
In accordance with the terms of our engagement letter dated 2 September 2021 and further to the requirements of the Education and Skills Funding Agency (ESFA) as included in the Academies Accounts Direction 2020 to 2021, we have carried out an engagement to obtain limited assurance about whether the expenditure disbursed and income received by Abbey Academies Trust during the period 1 September 2020 to 31 August 2021 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 Abbey Academies Trust and ESFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to the Abbey Academies Trust and ESFA 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 Abbey Academies Trust and ESFA, for our work, for this report, or for the conclusion we have formed.
The accounting officer is responsible, under the requirements of Abbey Academies Trust’s funding agreement with the Secretary of State for Education dated 30 November 2010 and the Academies Financial Handbook, extant from 1 September 2020, 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 2020 to 2021. We report to you whether anything has come to our attention in carrying out our work which suggests that in all material respects, expenditure disbursed and income received during the period 1 September 2020 to 31 August 2021 have not been applied to purposes intended by Parliament or that the financial transactions do not conform to the authorities which govern them.
We conducted our engagement in accordance with the Framework and Guide for External Auditors and Reporting Accountant of Academy Trusts issued by ESFA. 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 trust's income and expenditure.
The work undertaken to draw to our conclusion includes:
a review of the activities of the academy, by reference to sources of income and other information available to us;
sample testing of expenditure, including payroll;
a review of minutes of Governors’ meetings.
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 period 1 September 2020 to 31 August 2021 has not been applied to purposes intended by Parliament and the financial transactions do not conform to the authorities which govern them.
The accounts on pages 22 to 47 were approved by the trustees and authorised for issue on
A summary of the principal accounting policies adopted (which have been applied consistently, except where noted), judgements and key sources of estimation uncertainty, is set out below.
The accounts of the trust, which is a public benefit entity under FRS 102, have been prepared under the historical cost convention in accordance with the Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102), the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)), the Academies Accounts Direction 2020 to 2021 issued by ESFA, the Charities Act 2011 and the Companies Act 2006.
The trustees assess whether the use of going concern is appropriate, ie whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charitable company to continue as a going concern. The trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the accounts and have concluded that the trust has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the trust’s ability to continue as a going concern. Thus they continue to adopt the going concern basis of accounting in preparing the accounts.
The trustees have taken consideration of the effects of COVID-19 in making their assessment.
All income is recognised when the trust has entitlement to the funds, the receipt is probable and the amount can be measured reliably.
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 meeting any performance-related conditions there is not unconditional entitlement to the income and its recognition is deferred and included in creditors as deferred income until the performance-related conditions are met. Where entitlement occurs before income is received, the income is accrued.
General Annual Grant is recognised in full in the statement of financial activities in the period for which it is receivable, and any abatement in respect of the period is deducted from income and recognised as a liability.
Capital grants are recognised in full when there is an unconditional entitlement to the grant. Unspent amounts of capital grants are reflected in the balance sheet in the restricted fixed asset fund. Capital grants are recognised when there is entitlement and are not deferred over the life of the asset on which they are expended.
Donations are recognised on a receivable basis (where there are no performance-related conditions) where the receipt is probable and the amount can be reliably measured.
Other income, including the hire of facilities, is recognised in the period it is receivable and to the extent the trust has provided the goods or services.
The value of donated services and gifts in kind provided to the trust are recognised at their open market value in the period in which they are receivable as income, where the benefit to the trust 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 trust's policies. The value of donated time from volunteers has not been included in these accounts.
Donated fixed assets are measured at fair value unless it is impractical to measure this reliably, in which case the cost of the item to the donor is used. The gain is recognised as income from donations and a corresponding amount is included in the appropriate fixed asset category and depreciated over the useful economic life in accordance with the trust‘s accounting policies.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
All resources expended are inclusive of irrecoverable VAT.
This includes all expenditure incurred by the trust to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
These are costs incurred on the trust's educational operations, including support costs and costs relating to the governance of the trust apportioned to charitable activities.
These include the costs attributable to the trust's compliance with constitutional and statutory requirements, including audit, strategic management, trustees' meetings and reimbursed expenses.
Assets costing £5,000 or more are capitalised as tangible fixed assets and are carried at cost, net of depreciation and any provision for impairment.
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 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 trust's depreciation policy. Where tangible fixed assets have been acquired with unrestricted funds, depreciation on such assets is charged to the unrestricted fund.
Furniture and equipment transferred into the academy from the previous local authority school has not been valued and introduced into these accounts.
Leasehold property inherited from the Local Authority on conversion to an academy was professionally valued on a depreciated replacement cost basis at 31 August 2012, commissioned by the ESFA.
Leasehold property provided to the trust immediately on completion of the building being constructed is included at a value equivalent to the cost of the building.
Leasehold property inherited from the Local Authority on conversion to an academy during the year has been valued by the trustees using an average square footage calculation.
Depreciation is provided on all tangible fixed assets other than leasehold land, at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life, as follows:
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.
Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the trust anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods of services it must provide.
Rentals under operating leases are charged on a straight-line basis over the lease term.
The trust only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the trust and their measurement basis are as follows.
Trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments.
Cash at bank is classified as a basic financial instrument and is measured at face value.
Trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition.
Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument.
Stock is valued at the lower of cost and net realisable value. Net realisable value is based on estimated selling price less further costs to completion and disposal. Provision is made for obsolete and slow moving stock.
The trust 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 trust 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.
Retirement benefits to employees of the trust 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 trust.
The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees' working lives with the trust 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 quadrennial valuations using a projected unit method. The TPS is an unfunded multi-employer scheme with no underlying assets to assign between employers. Consequently, the TPS is treated as a defined contribution scheme for accounting purposes and the contributions are recognised in the period to which they relate.
The LGPS is a funded multi-employer scheme and the assets are held separately from those of the trust 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 credit method and discounted at a rate equivalent to the 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 net income or expenditure are the current service costs and the costs of scheme introductions, benefit changes, settlements and curtailments. They are included as part of staff costs as incurred. Net interest on the net defined benefit liability/asset is also recognised in the statement of financial activities and comprises the interest cost on the defined benefit obligation and interest income on the scheme assets, calculated by multiplying the fair value of the scheme assets at the beginning of the period by the rate used to discount the benefit obligations. The difference between the interest income on the scheme assets and the actual return on the scheme assets is recognised in other recognised gains and losses. Actuarial gains and losses are recognised immediately in other recognised gains and losses.
Unrestricted income funds represent those resources which may be used towards meeting any of the charitable objects of the trust at the discretion of the trustees.
Restricted fixed asset funds are resources which are to be applied to specific capital purposes imposed by the 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 Education & Skills Funding Agency.
Accounting e stimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The trust makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
The present value of the Local Government Pension Scheme defined benefit liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost or income for pensions include the discount rate. Any changes in these assumptions, which are disclosed in note 21, will impact the carrying amount of the pension liability. Furthermore, a roll forward approach which projects results from the latest full actuarial valuation performed at 31 March 2019 has been used by the actuary in valuing the pensions liability at 31 August 2021. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of the pension liability.
The trust received £79,200 of funding for catch-up premium. This income has been fully spent and the costs are included in notes 7 and 9 below.
The academy received a further £11,314 for emergency support and £28,790 from the local authority. This income has been fully spent and the costs are included in notes 7 and 9 below.
No central services were provided by the trust to its academies during the year and no central charges arose.
Included in staff restructuring costs are non-statutory/non-contractual severance payments totalling £nil (2020 - £20,300).
The key management personnel of the trust comprise the senior management team as listed on page 1 . This year this represents 18 employees (2020 - 18 employees). The total amount of employee benefits (including employer pension contributions and employer national insurance contributions ) received by key management personnel for their services to the trust was £ 1,208,053 (2020 - £1,143,908).
One or more trustees has been paid remuneration or has received other benefits from an employment with the trust. The Executive Headteacher and other staff trustees only receive remuneration in respect of services they provide undertaking the roles of Executive Headteacher and staff members under their contracts of employment, and not in respect of their services as trustees. Other trustees did not receive any payments, other than expenses, from the trust in respect of their role as trustees.
The value of trustees' remuneration and other benefits was as follows:
Mrs S J Moore (Executive Head Teacher)
Remuneration £120,000 - £125,000 (2020 - £110,000 - £115,000)
Employer’s pension contributions £25,000 - £30,000 (2020 - £25,000 - £30,000)
During the period ended 31 August 2021, no travel and subsistence expenses were reimbursed or paid directly to trustees (2020: none).
The trust has opted into the Department for Education’s Risk Protection Arrangement (RPA), an alternative to insurance where UK government funds cover losses that arise. This scheme protects trustees and officers from claims arising from negligent acts, errors or omissions occurring whilst on trust business, and provides cover up to £10,000,000. It is not possible to quantify the trustees and officers indemnity element from the overall cost of the RPA scheme.
Leasehold property comprises three properties, two of which are held on licence to use and the other on a 125 year lease, two with Lincolnshire County Council and one with Lincoln Diocesan Board of Education.
Deferred income relates to amounts paid in advance for the 2020/21 school year for kindergarten places, kids club places, school trip deposits and universal infant free school meals.
The specific purposes for which the funds are to be applied are as follows:
Restricted fixed asset funds
The devolved capital formula grant has to be spent on capital expenditure within 3 years of allocation.
The capital expenditure fund represents the net book value of fixed assets purchased.
The leasehold property represents the net book value of the leasehold property.
Restricted general funds
The restricted grant income in the year all relates to the provision of education for the children of the academy.
Under the funding agreement with the Secretary of State, the trust was not subject to a limit on the amount of GAG that it could carry forward at 31 August 2021.
Parliament has agreed, at the request of the Secretary of State for Education, to a guarantee that, in the event of academy closure, outstanding Local Government Pension Scheme liabilities would be met by the Department for Education. The guarantee came into force on 18 July 2013.
Designated funds
The school fund balances are designated by the trustees for use in a variety of different areas.
The trust's employees belong to two principal pension schemes: the Teachers' Pension Scheme England and Wales (TPS) for academic and related staff; and the Local Government Pension Scheme (LGPS) for non-teaching staff, which is managed by Lincolnshire County Council. Both are multi-employer defined benefit schemes.
The latest actuarial valuation of the TPS related to the period ended 31 March 2016, and that of the LGPS related to the period ended 31 March 2019.
Contributions amounting to £80,775 (2020 - £70,069) were payable to the schemes at 31 August 2021 and are included within creditors.
The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pension Scheme Regulations 2014. Membership is automatic for teachers in academies. All teachers have the option to opt out of the TPS following enrolment.
The TPS is an unfunded scheme to which both the member and employer makes contributions, as a percentage of salary. These contributions are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.
The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2016. The valuation report was published by the Department for Education on 5 March 2019.
The key elements of the valuation and subsequent consultation are:
employer contribution rates set at 23.68% of pensionable pay (including a 0.08% employer administration charge)
total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service to the effective date of £218,100 million, and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £196,100 million giving a notional past service deficit of £22,000 million
the SCAPE rate, set by HMT, is used to determine the notional investment return. The current SCAPE rate is 2.4% above the rate of CPI. The assumed real rate of return is 2.4% in excess of prices and 2% in excess of earnings. The rate of real earnings growth is assumed to be 2.2%. The assumed nominal rate of return including earnings growth is 4.45%.
The next valuation result is due to be implemented from 1 April 2023.
The employer's pension costs paid to the TPS in the period amounted to £435,449 (2020: £396,560).
A copy of the valuation report and supporting documentation is on the Teachers’ Pensions website.
Under the definitions set out in FRS 102, the TPS is an unfunded multi-employer pension scheme. The trust has accounted for its contributions to the scheme as if it were a defined contribution scheme. The trust has set out above the information available on the scheme.
The LGPS is a funded defined benefit pension scheme, with the assets held in separate trustee-administered funds. The total contributions are as noted below. The agreed contribution rates for future years are 19% for employers and 5.5 to 6.8% for employees.
Parliament has agreed, at the request of the Secretary of State for Education, to a guarantee that, in the event of academy closure, outstanding Local Government Pension Scheme liabilities would be met by the Department for Education. The guarantee came into force on 18 July 2013.
Scheme liabilities would have been affected by changes in assumptions as follows:
Owing to the nature of the trust's operations and the composition of the board of trustees being drawn from local public and private sector organisations, transactions may take place with organisations in which the trust has an interest. All transactions involving such organisations are conducted at arm's length and in accordance with the trust's financial regulations and normal procurement procedures.
Some of the trustees have children who are pupils at the academy, consequently there will be transactions between those trustees and the academy in respect of their children’s education. These are on the same basis as other pupils at the academy.
Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up while he or she is a member, or within one year after he or she ceases to be a member, such amount as may be required, not exceeding £10 for the debts and liabilities contracted before he or she ceases to be a member.