The trustees present their annual report together with the accounts and auditor's report of the charitable company for the year 1 September 2019 to 31 August 2020. The annual report serves the purposes of both a trustees' report, and a directors' report under company law.
The St Thérèse of Lisieux CMAT operates across a wide and diverse geographical area that covers North Lincolnshire, North East Lincolnshire, Lincolnshire and Rutland. It was established in September 2018 as one of four Catholic Multi Academy Trusts in the Diocese of Nottingham.
It is a larger than average sized Multi Academy Trust, compared to other Multi Academy Trusts nationally, and is made up of sixteen schools; fourteen primary academies and two secondaries.
Its academies have a combined pupil capacity of 4421 and had a roll of 4056 in the school census on 1 October 2020. One of the primary academies is sponsored by the STL CMAT (formerly NOLCAT).
The academy 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 academy trust.
The charitable company operates as St Thérèse of Lisieux Catholic Multi Academy Trust .
The Academy Trust had sixteen active academies during the period as follows:
English Martyrs’ Catholic Academy
Our Lady of Good Counsel Catholic Academy
Our Lady of Lincoln Catholic Academy
St Augustine Webster Catholic Academy
St Augustine’s Catholic Academy
St Bede’s Catholic Academy
St Bernadette’s Catholic Academy
St Hugh’s Catholic Academy
St Joseph’s Catholic Academy
St Mary’s Catholic Academy (Boston)
St Mary’s Catholic Academy (Grantham)
St Mary’s Catholic Academy (Brigg)
St Mary’s Catholic Academy (Grimsby)
St Norbert’s Catholic Academy (Spalding)
St Norbert’s Catholic Academy (Crowle)
St Peter & St Paul Catholic Academy
The trustees of St Therese of Lisieux Catholic Multi Academy 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.
The Academy Trust through its articles has indemnified its Trustees to the fullest extent permissible by law. During the period the Trust also purchased and maintained liability insurance for its Trustees.
The Diocesan Bishop will appoint the St Therese of Lisieux CMAT Foundation Directors. At least two Parish Priests are Foundation Directors.
There must be a minimum of two Parent Directors, if there is not a minimum of two Parent Local Governors on each Local Governing Body.
The Secretary of State may also appoint additional Directors if he feels it appropriate and ultimately has the power to in effect take over the governance of the Trust. The Secretary of State has not appointed any additional Directors.
Induction of new Directors will be undertaken by:
Diocesan Training
A mentoring process with established Directors
The Scheme of Delegation outlines the governance structure and lines of accountability. As a charity and company limited by guarantee, the Catholic Multi-Academy Trust Company is governed by the Board of Directors which is responsible for and oversees the management and administration of the Catholic Multi-Academy Trust Company and the academies within it. The Directors have overall responsibility and ultimate decision-making authority for all the work of the Catholic Multi-Academy Trust Company. These responsibilities are largely carried out through strategic planning and the setting of policy.
The Members (one of whom is the Bishop of Nottingham) appoint (and remove) the Directors.
The Catholic Multi-Academy Trust Company Board of Directors is responsible for the following core functions:
ensuring clarity of vision, Catholic ethos and strategic direction;
holding the Chief Executive Officer to account for the educational performance of the Catholic Multi-Academy Trust Company’s academies and their pupils, and the performance management of staff;
overseeing the financial performance of the Catholic Multi-Academy Trust Company and making sure its money is well spent.
The Board appoints the CEO, to whom it delegates responsibility for delivery of the vision and strategy and will hold the CEO to account for the conduct and performance of the Catholic Multi-Academy Trust, including the performance of the academies within the Trust, and for its financial management.
In turn, the CEO line manages other senior executives and the Headteachers, setting their targets and performance managing them.
The Board constitutes committees for:
Catholic Life, Curriculum & Standards
Finance, Compliance & Estates
HR & Staffing
Pay & Performance Management
Audit & Risk
The Board constitutes local governing bodies (LGB). These are also committees of The Board. The Board delegates some of its Academy level monitoring and scrutinising functions to the LGBs, and uses these committees to:
promote the vision of the Catholic Multi-Academy Trust Company;
promote and develop Catholic Life;
monitor the school development plan;
support and challenge the principal/headteacher;
maintain and develop relationships with staff, parents and the parish community
ensure arrangements for safeguarding pupils and staff in the Academy are fully compliant with statutory requirements.
Whilst the Headteacher is being line managed by the CEO, the LGB will support them to hold the Headteacher to account on the Catholic Life of the school, standards and the delivery of the school development plan. Should the LGB have concerns about the performance of the Headteacher then these concerns will be reported to The Board following the procedure set out in the Appraisal Policy and Procedure.
The LGB will also review the performance of the CMAT central functions and the CEO and will report their considerations to The Board.
The Academy Headteacher is responsible for the day to day management of the Academy and is managed by the CEO but reports to the LGB on matters which have been delegated to it including monitoring and scrutiny of the school development plan, Catholic Life and safeguarding. All Academies follow the CES (Catholic Education Service) policies as instructed by the Diocese.
Other policies are presented to the Board of Directors for consideration and approval.
The key management personnel of the academy trust comprise the trustees and the senior management team as listed on page 1.
The CEO pay band is defined in the Pay Policy for Chief Executive Officer and is based on criteria including the size of the trust, number of staff and budget. The Board will determine the pay band based on these criteria.
Incremental scale increases are agreed through annual performance appraisal and the decision to increment is the responsibility of the Board of Directors.
Each Academy is allocated to a group on the leadership pay spine as determined from the Academy’s unit score as set out in the current edition of the School Teachers’ Pay and Conditions document issued by the Department for Education.
The Local Governing Body has determined the Individual School Range of seven consecutive spine points on the leadership pay spine, to assign the Headteacher to.
The salary and any move up the pay spine of the Headteacher will be determined, by the Pay and Performance Management Committee by 31 December each year, in accordance with the provisions of the STPCD (School Teachers’ Pay and Conditions Document) and with due regard to advice and guidance from the Department for Education (DfE) and the council as applicable. This includes the requirement for the CEO to determine performance objectives annually and to review the Headteacher’s performance against these, having sought external independent advice from an appropriate person or body. The CEO may decide to award one increment for sustained high quality performance or two increments where performance has been exceptional. Where performance has not been of a sustained high quality the CEO may decide that there should be no pay progression.
The Directors ensure all key policies affecting staff are communicated to them and are available via Trust Governor, Microsoft Teams and the Trust’s and each Academy’s website. Each Academy publishes an Accessibility Plan which is available to all via their website.
Each trust director takes on the role as link director for a number of schools within the trust. Link directors attend some governor meetings at their academies and maintain regular contact with the Head Teacher and Senior Leadership Team.
The central team also engage with employees via a range of meetings including Head teacher meetings, business and finance meetings, budget planning meetings and budget management meetings.
The Trust is an equal opportunities employer whose policy is to support recruitment of students and employees with disabilities. The Trust supports this by adapting the physical environment wherever possible, by making support resources available, through training and career development and utilising equality impact assessments where required. New buildings and improvements to existing buildings all recognise the need to be fully DDA compliant.
The trust covers a wide geographical area and aims to support local Small – Medium Enterprise suppliers where possible. This results in both centralised and local engagement with suppliers through meetings, catch up discussions and for large supplies formal review meetings.
The other key stakeholders of our trust are our Children and Families – in addition to our teaching we engage with them almost daily on multiple levels through a variety of media channels including face to face, telephone, email, text, letter, and social media. Engagement may be on a one to one basis or group-based engagement on upcoming events, news, changes and performance.
Strong engagement with all stakeholders has been paramount through the COVID-19 pandemic. During this time Directors have attended many additional board and subcommittee meetings to ensure that engagement can be maintained and messages are clear and consistent.
The Academy Trust is under the Trusteeship of the Roman Catholic Diocese of Nottingham. The Trust is instructed by the Diocese to follow the Catholic Education Service policies. Each Academy within the Trust pays a Service Level Agreement (SLA) with the Diocese for support and training on educational matters.
The Chief Financial Officer has reported related party transactions to the Education Skills Funding Agency (ESFA) in line with the Academies Financial Handbook. Prior approval from the ESFA has not been required as services that can only be delivered by the Diocese, which provide essential functions fundamental to the religious character and ethos of the academy trust, are deemed as meeting the "at-cost" requirements and need to be declared only.
The objectives of the St Thérèse of Lisieux Catholic Multi Academy Trust is to protect, secure and develop Catholic education in the Diocese of Nottingham so that each and every young person attending a diocesan school receives the very best educational opportunities and life-fulfilling experiences within authentically Catholic communities that are centred on the person of Jesus Christ.
The CMAT seeks to enable Catholic schools, located in the geographical area of Greater Lincolnshire and Rutland to secure their future by strengthening their solidarity through effective collaboration. The CMAT will enable clear working relationships to be established between its schools to assist with school improvement, leadership recruitment and formation, governance and collaboration to achieve their common purpose and shared mission. Furthermore, it will ensure that in a national context of relative change and uncertainty no school is left isolated and unsupported.
The support for schools aims to be comprehensive, inclusive and responsive to the individual and collective needs of our schools that will ensure they both deliver the mission of the Church and meet the challenges of the national accountability agenda through mutually supportive intervention and training.
The Trust takes responsibility for the financial and resource management of schools, thus freeing school leaders to concentrate on what matters: the spiritual formation and education of the young people in our schools.
The foundation stone of our CMAT is the person of Jesus Christ and we are committed to safeguarding the distinctive Catholic ethos of our schools by placing Christ and the teachings of the Catholic Church at the centre of all we do.
The character of the St Thérèse of Lisieux Catholic Multi Academy Trust is collaborative and participative. Each school is of equal value. We respect the unique identity of each school and value the diversity of experience and perspective they bring. Each school is given a voice, though the arrangements for local governance and their relationship with the CMAT Board of Directors.
Strategic Aims:
To protect, secure and develop further the distinctiveness of Catholic education in the Diocese of Nottingham
To achieve an established culture of continuous school improvement which ensures the CMAT achieves its ambition as a ‘communion of high achieving Catholic schools’ where pupil outcomes are above national figures
To establish and embed an effective central service to ensure Academy leaders are given the support and scope to focus on the core objectives of the Catholic Life and Standards of the academies and the secure the viability of the CMAT academies for the long term
The strategic aims will be met by meeting the following priorities:
Deepen the Catholic mission of academies
Ensure that safeguarding in all our schools is effective and that all academies are providing a Good or Outstanding quality of education
Secure financial sustainability for the CMAT and its academies
Increase the pupil numbers in the CMAT
Strengthen leadership and governance at all levels in the CMAT
Provide effective systems, policies and processes to support the work of the CMAT
The Trust has had due regard to the guidance on public benefit published by the Charity Commission.
The Trust wishes to promote the benefit of individuals living in Lincolnshire and Rutland through education and community use of facilities. All academies are truly comprehensive and diverse in nature.
Due to Covid-19, the Government announced that it will not publish any school or college level educational performance data based on tests, assessments or exams for 2020. As such this data is based on performance as at the end of August 2019.
Key Stage 2 Results
% of pupils meeting expected standards in reading, writing and maths at the end of key stage 2 in 2019 – all pupils
Academy Name |
Number of pupils at the end of KS2 |
Reading, writing and maths |
Reading |
Writing |
Maths |
Grammar, punctuation and spelling |
St Norbert’s – Crowle |
17 |
94% |
100% |
100% |
94% |
94% |
English Martyrs – Oakham |
13 |
85% |
92% |
92% |
85% |
92% |
St Augustine Webster - Scunthorpe |
52 |
79% |
79% |
90% |
9 0 % |
85% |
St Mary’s - Brigg |
23 |
78% |
78% |
87% |
96% |
83% |
St Bernadette’s – Scunthorpe |
37 |
76% |
84% |
86% |
78% |
84% |
St Norbert’s – Spalding |
28 |
75% |
79% |
89% |
89% |
82% |
St Hugh’s – Lincoln |
53 |
75% |
85% |
91% |
81% |
83% |
St Joseph’s – Cleethorpes |
25 |
68% |
80% |
80% |
72% |
68% |
St Mary’s - Grantham |
31 |
61% |
61% |
77% |
74% |
68% |
Our Lady of Lincoln |
29 |
59% |
62% |
72% |
79% |
72% |
St Mary’s – Boston |
28 |
57% |
64% |
79% |
71% |
75% |
Our Lady of Good Counsel – Sleaford |
21 |
57% |
62% |
81% |
76% |
81% |
St Augustine’s - Stamford |
18 |
56% |
67% |
67% |
67% |
67% |
St Mary’s – Grimsby |
28 |
54% |
61% |
68% |
82% |
57% |
England – state funded schools |
644967 |
65% |
73% |
78% |
79% |
78% |
England – All schools |
649249 |
65% |
73% |
78% |
79% |
78% |
Key Stage 4 Results
Academy Name |
Number of pupils at end of KS4 |
Progress 8 |
Entering EBacc |
Staying in education or employed (2017 leavers) |
Grade 5 or above in English & Maths GCSE |
Attainment 8 score |
EBacc Ave. point score |
|
Number of pupils in measure |
Score & description |
|||||||
St Bede’s – Scunthorpe |
122 |
121 |
0.12 Average |
64% |
96% |
51% |
45.8 |
4.17 |
St Peter & St Paul - Lincoln |
99 |
92 |
-0.43 Below average |
21% |
94% |
25% |
39.2 |
3.31 |
England – state funded schools |
542621 |
512929 |
-0.03 |
40% |
94% |
43% |
46.7 |
4.07 |
England – all schools |
604963 |
|
|
37% |
|
40% |
44.7 |
3.87 |
Key Stage 5 Results
A level performance at the end of 16 to 18 in 2019
Academy Name |
Number of pupils with A-Level exam entry |
Progress score and description |
Average Result |
Pupils completing their main study programme |
Achieving ABB or Higher in atleast 2 subjects |
Grade & points for A students |
|
Grade |
Point Score |
||||||
St Peter & St Paul - Lincoln |
31 |
-0.01 Average |
C- |
27.55 |
100% |
16.7% |
C 30.00 |
England – state funded schools |
247995 |
0 |
C+ |
32.87 |
91.3% |
14.1% |
C+ 32.89 |
England – all schools |
283528 |
0 |
C+ |
34.01 |
|
16.5% |
C+ 33.96 |
Applied general qualifications performance at the end of 16 to 18 in 2019
Academy Name |
Number of pupils with applied general exam entry |
|
Average Result |
Pupils completing their main study programme |
|
Progress score & Description |
Grade |
Point score |
|||
St Peter & St Paul - Lincoln |
16 |
-0.35 Average |
Merit- |
21.76 |
76.5% |
England – state funded schools |
67710 |
0 |
Merit+ |
28.89 |
86.5% |
England – all schools |
68773 |
0 |
Merit+ |
28.91 |
|
Key Performance Indicators
The trust’s Strategic plan sets out key performance indicators that support improved outcomes for children within our schools. They are:
Outcome of Diocesan Canonical Inspection to be at least good overall with Catholic Life and Collective Worship to be judged outstanding
All pupil progress indicators to be above average compared to all schools nationally
All pupil attainment indicators to be in line with FFT 20 estimates and/or national figures
The overall quality of education to be good or better
Attendance indicators to be at least in line with national figures
The number of Fixed Term Exclusions to be below the national figure
The table below show’s how well we have achieved these
School Name |
Diocesan Canonical Inspection |
Pupil Progress Indicators |
Pupil Attainment Indicator |
Quality of Education* |
Attendance – Absence Rate |
St Norbert’s – Crowle |
Outstanding |
Average |
94% |
Good |
2.5% |
English Martyrs – Oakham |
Good |
Average |
85% |
Good |
3.1% |
St Augustine Webster - Scunthorpe |
Outstanding |
Well above Average |
79% |
Requires Improvement |
3.6% |
St Mary’s - Brigg |
Good |
Well above Average |
78% |
Good |
2.9% |
St Bernadette’s – Scunthorpe |
Outstanding |
Well above Average |
76% |
Outstanding |
4.3% |
St Norbert’s – Spalding |
Outstanding |
Average |
75% |
Outstanding |
3.5% |
St Hugh’s – Lincoln |
Outstanding |
Average |
75% |
Outstanding |
4.1% |
St Joseph’s – Cleethorpes |
Good |
Average |
68% |
Good |
3.5% |
St Mary’s - Grantham |
Outstanding |
Average |
61% |
Good |
4.3% |
Our Lady of Lincoln |
Good |
Average |
59% |
Good |
5% |
St Mary’s – Boston |
Good |
Average |
57% |
Good |
|
Our Lady of Good Counsel – Sleaford |
Good |
Average |
57% |
Good |
4.3% |
St Augustine’s - Stamford |
Good |
Well below Average |
56% |
Requires Improvement |
4% |
St Mary’s – Grimsby |
Good |
Well above Average |
54% |
Good |
4% |
St Peter and St Paul – Lincoln |
Good |
Below Average |
39.2% |
Good |
8.4% |
St Bede’s - Scunthorpe |
Outstanding |
Average |
45.8% |
Good |
6.2% |
England – state funded schools |
|
Prim -65% Sec -0.03 |
Prim -65% Sec–46.7% |
|
5.5% |
England – All schools |
|
Prim - 65% Sec -0.03 |
Prim -65% Sec–44.7% |
|
4% |
The Trust vision is set in the context of the budget setting strategy for the CMAT that also has the following principles that are considered KPI’s:
All academies must operate an in-year balanced budget
Expenditure on staffing costs should be limited to 75% of total income before the 5% top slice
Each Academy should hold cash reserves equivalent to 60 days’ operating expenditure
Budget |
Balanced Budget |
Percentage Staff costs |
Days reserves |
Augustine Webster Scunthorpe |
No |
81% |
27 |
St Mary’s Boston |
No |
79% |
50 |
English Martyrs Oakham |
No |
78% |
31 |
Our Lady of Good Council Sleaford |
Yes |
79% |
50 |
St Mary’s Grimsby |
Yes |
70% |
84 |
St Mary’s Grantham |
Yes |
66% |
126 |
St Hughes Lincoln |
No |
82% |
-11 |
St Joseph’s Cleethorpes |
Yes |
79% |
74 |
Our Lady of Lincoln Lincoln |
Yes |
71% |
95 |
St Mary’s Brigg |
No |
81% |
89 |
St Norbert’s Crowle |
Yes |
71% |
3 |
St Norbert’s Spalding |
Yes |
71% |
66 |
St Peter and St Paul’s Lincoln |
Yes |
76% |
7 |
St Augustine’s Stamford |
Yes |
72% |
38 |
St Bede’s Scunthorpe |
Yes |
77% |
86 |
St Bernadette’s Scunthorpe |
Yes |
74% |
114 |
Central Team Budget |
No |
69% |
-14 |
COVID-19 virus
As well as non-publication of school or college level educational performance data based on tests, assessments or exams for 2020 the national and local COVID-19 virus control measures have affected the activities of the Trust:
Whilst our limited fundraising through donations was not impacted our academies were unable to collect a significant amount of budgeted income for in school services such as Breakfast club, After school club, Swimming, Music tuition and Home to school transport. For the majority of cases the payments to our suppliers for these services continued as per PPN 02/20 resulting in shortfalls in many of our Academies budgets
Staff and pupils have been impacted by the virus in terms of illness, gaps in education and shielding of the vulnerable:
Whilst contraction of the virus in the trust’s academies has been relatively low we have had a small number of cases of staff suffering ‘long COVID’ which has impacted on their wellbeing as well as delivery of teaching and learning in the school.
Pupils have suffered no known long-term effects from infection, but have experienced a gap in education which has resulted in some children falling behind in their learning – Our academies will all receive COVID-19 catch up funding in 2020/21 which will help leaders to address this gap.
Vulnerable staff and pupils shielded during the national lockdown and up to 31 August 2020. We continue to implement additional control measures, including homeworking, for pregnant employees in the 3 rd trimester and clinically extremely vulnerable during the period of lockdown 5 th November to 2 nd December 2020.
The staffing requirements to deliver lessons through bubbles, additional cleaning and sanitisation resources, the cost of covering illness and loss of income generation through school services have impacted on the trust’s risk relating to Financial Planning and Budget Management. Whilst the risk has not materialised to such an extent to create a deficit for the trust overall, it has had an impact on reserves for some of our academies.
COVID-19 control measures continue to impact on the Trust and our Academies, which will affect the Trust’s future aims. Most significant impacts expected are:
Fall in pupil numbers, especially in our academies with high percentage of EAL pupils, as some families have chosen to return to living in their home country.
Additional staff expenditure incurred to cover illness, self-isolation, bubble management and cleaning
Ability to recruit key teaching and support staff in a stagnant job market
Delays in delivering some activities set out in the Trust’s and Academies’ strategic plans
After making appropriate enquiries, the board of trustees has a reasonable expectation that the academy trust has adequate resources to continue in operational existence for the foreseeable future. For this reason, the board of trustees continues 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.
As a registered charity, our Directors ‘Promote the success of the charity to achieve its charitable purpose’ through supporting the Trust to achieve its Catholic vision and mission. This is set out in the section on aims and objectives earlier in the report. How we monitor progress is also detailed and the section on performance and achievement details the outcomes against our KPIs.
The Trust has established a reserves policy to protect the Trust and its academies against an uncertain financial environment and to allow sufficient provision to safeguard The Trust’s future cash flow requirements and to fund its capital replacement strategy. The policy also provides the framework for future strategic planning and decision making.
As at 31 August 2020, Trust reserves are:
Restricted General Funds £2,751,025
Restricted Fixed Asset Funds £17,110,862
Unrestricted Funds £680,963
Restricted Pension Fund (£10,140,000)
Total Reserves £10,402,850
Our reserves policy requires each Academy will hold reserves equivalent to 60 days operating expenditure to ensure against both foreseen and unpredicted events which could place a strain on the day to day finances of the academy.
Our intention will always be to spend the public funds with which we are entrusted for the direct educational benefit of students as soon as is prudent. We do not consider the investment of surplus funds as a primary activity, rather it is the result of good stewardship as and when circumstances allow. From time to time, operational and strategic decisions related to the education of students will result in substantial cash balances at the bank over a sustained period. These periods are identified by the Finance Manager as part of normal forecasting activity and may trigger The Trust making an investment. Prior to investing funds, the Finance Manager will review the accuracy of cash flow predictions and the amount/time period of the investment to ensure that it will not compromise the viability and sustainability of the activities of The Trust. In making decisions regarding where and how any surplus funds should be invested, due regard will be given to the risk that the return on investments is not being maximised and the risk that Trustees are not acting in accordance with their Investment Policy. Investments will be made taking into consideration social, environmental and ethical considerations in relation to the tenets of the Catholic Church.
The trust has developed a comprehensive risk register. The most significant risks based on our residual risk assessments are:
Governance
Loss of key staff
Demographic pupil numbers
Contract Management
These and other lower residual risks have actions to reduce risks identified and implementation of these actions is monitored by the Audit and Risk Committee.
A small level of fundraising is carried out at the Trust. It is not carried out by a commercial participator or professional fundraiser. No complaints have been received about the fundraising carried out at the Trust.
The Trust does not heavily promote fundraising activities and there is no undue pressure placed on a person to give money or other property. The fundraising activities are not formally monitored due to the small scale of activities carried out. Funds raised are used locally for the benefit of students and their education.
We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting.
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2 equivalent per pupil, the recommended ratio for the sector.
During the year we have significantly reduced the level of staff travel through increasing the use of video conferencing technology for both staff and director meetings, which has reduced the need for travelling between academies and the central office significantly.
The trust has not had any growth through the addition of Catholic academies during 2019/20 and does not plan to expand further in the short to medium term other than by maximising the existing estate.
Focus will be on:
maximising the benefits of the Multi Academy Trust framework to support school improvement
Increasing pupil numbers, especially in those academies that have seen a recent reduction in number on roll
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.
On 7 September 2020 Group Audit Service Limited trading as Baldwins Audit Services changed its name to Azets Audit Services Limited. The name they practice under is Azets Audit Services and accordingly they have signed their report in their new name.
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 St Therese Of Lisieux Catholic Multi Academy 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.
As trustees, we have reviewed and taken account of the guidance in DfE's g overnance h andbook and competency framework for governance.
The board of trustees has delegated the day-to-day responsibility to the Chief Executive Officer, 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 St Therese Of Lisieux Catholic Multi Academy 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 9 times during the year. Attendance during the year at meetings of the board of trustees was as follows:
The Trust continues to actively encourage the appointment of Trustees and Governors with essential skills which are regularly reviewed in the Trust’s online governance system; Trust Governor. Governor and Director skills are monitored by the Diocese and training is put in place if required. The Board is consistently monitoring its own standards of governance to identify any areas of weakness.
Governance was covered in the work of the Internal Audit’s independent review – this did not identify any areas where action was required.
Governance will feature in the agreed audit plan for 2020/21 and actions will be agreed for any issues identified and implemented in a timely way.
The Finance, Compliance and Estates Committee is a sub-committee of the main Board of Directors. Its purpose is to hold to account and constructively challenge the Executive Team as to the effectiveness and impact of policy, proposals and practice in relation to the management and deployment of Trust resources; review benchmarking data in relation to the overall performance of the Trust in comparison to regional and national standards and to the performance of other comparable Trusts; provide oversight and assurance to the Trust Board as to the effective and appropriate management and use of Trust resources and to make recommendations to the Board in relation to these matters; and consider and review detailed reports on the financial sustainability, human resource and estate management performance, practices and resources of the Trust; oversee all matters relating to health and safety within the Trust. The Chair of the committee, Graham Green is a qualified accountant.
Attendance at meetings in the year was as follows:
The Audit & Risk Committee is also a sub-committee of the main Board of Directors. Its purpose is to determine, oversee and review the arrangements for independent checking of financial controls, systems, transactions and risks; review the risks to the internal control framework at the Trust; agree an Annual Internal Audit Plan that shall address these and other risks identified by the Trust Board from time to time; inform the statement of internal control and, so far as is possible, provide assurance to the external auditor; recommend to Trust Board the appointment of internal and external auditors; establish and maintain through monitoring, an appropriate risk management strategy and risk register.
Attendance at meetings in the year was as follows:
As accounting officer , the Chief Executive Officer has responsibility for ensuring that the academy 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 Academy 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 appropriate. The accounting officer for the Academy Trust has delivered improved value for money during the year by:
Economies of Scale. The trust central team model continues to deliver savings to our sixteen Academies in terms of centrally delivered function and key contracts for software, online training packages, H&S inspection, conditional surveys, capital project delivery and audit. As one of four Multi Academy Trusts within the Diocese of Nottingham, economies of scale are further enhanced and the Trust is able to ensure value for money when undertaking procurement.
Purchasing Frameworks. During the year the Trust became a member of the Crescent Purchasing Consortium. This membership provides us with access to many EU-tendered purchasing frameworks. This enables us to access the collective spending power of all members and achieve savings we would not be able to obtain through direct tendering ourselves. To date we have utilised our membership to tender for a new Internal Audit contract.
We continue to utilise the frameworks available to us via Church Marketplace – energy has been a key focus during the year.
Educational Standards . The Trust monitors the educational standards of each Academy on a termly basis through the analysis of data. Projections are reported and barriers towards achieving targets for each Academy are discussed. Intervention strategies put in place by each Academy are considered as are the support mechanisms that the academies can give to one another. The Trust monitors standards by a robust review of each Academy’s performance through the Headteacher’s report provided at Local Governing Body meetings, and through data analysis undertaken by the Director of Performance and Standards which is reported to the Catholic Life, Curriculum & Standards Committee which then reports to the Board.
Better Income Generation . Each Academy has built on additional income generation and we have seen some innovative ways for generating income and funding during the year including Breakfast Club sponsorship, long term lettings and summer school in conjunction with a major supermarket. Unfortunately, due to COVID-19, some of these initiatives did not happen, but our Academies are still focused on income generation during this time and are maintaining relationships so that initiatives can resume once it is safe to do so.
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 academy 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 St Therese Of Lisieux Catholic Multi Academy Trust for the period 1 September 2019 to 31 August 2020 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 academy 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 academy trust's significant risks that has been in place for the period 1 September 2019 to 31 August 2020 and up to the date of approval of the annual report and accounts. This process is regularly reviewed by the board of trustees.
The academy 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 and general purposes 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 considered the need for a specific internal audit function and has decided:
to appoint Azets Audit Services as internal auditor for 2019/20.
The internal auditor’s role includes giving advice on financial matters and performing a range of checks on the Academy Trust’s financial systems. In particular, the checks carried out in the current period included:
Governance arrangements and maintenance of records
Governance and financial guidance
Review of bank, it’s reconciliations and other control account reconciliations
Financial management and reporting to directors
Income transactions
Review of payroll systems
On a termly basis, the auditor reports to the Board of Trustees, through the Audit & Risk Committee/Finance, Compliance & Estates Committee on the operation of the systems of control and on the discharge of the Board of Trustees’ financial responsibilities.
The Auditor’s 1 st audit review was carried out as planned, but the subsequent two visits were not carried out due to COVID-19 national lockdown and availability of auditor as lockdown eased.
Although nothing material was found, action was taken on any issues reported.
The newly revised FRC Ethical Standard for auditors will impact the trust and in the future our internal scrutiny arrangements will be delivered by Wylie & Bisset LLP.
As Accounting Officer the Chief Executive, L Wilson, 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 financial management and governance self-assessment process
the work of the executive managers within the Academy 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 Audit & Risk 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 St Therese of Lisieux Catholic Multi Academy Trust, I have considered my responsibility to notify the academy 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 academy trust, under the funding agreement in place between the academy trust and the Secretary of State for Education. As part of my consideration I have had due regard to the requirements of the Academies Financial Handbook 2019.
I confirm that I and the academy trust's board of trustees are able to identify any material irregular or improper use of funds by the academy trust, or material non-compliance with the terms and conditions of funding under the academy trust's funding agreement and the Academies Financial Handbook 2019.
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 St Therese of Lisieux Catholic Multi Academy Trust for the purposes of company law) are responsible for preparing the trustees' report and the accounts in accordance with the Academies Accounts Direction 2019 to 2020 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 2019 to 2020;
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
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 2020 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 2019 to 2020.
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 academy 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.
the trustees' use of the going concern basis of accounting in the preparation of the accounts is not appropriate; or
the trustees have not disclosed in the accounts any identified material uncertainties that may cast significant doubt about the academy trust’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the accounts are authorised for issue.
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 academy 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 academy 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.
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 16 September 2020 and further to the requirements of the Education and Skills Funding Agency (ESFA) as included in the Academies Accounts Direction 2019 to 2020, we have carried out an engagement to obtain limited assurance about whether the expenditure disbursed and income received by St Therese of Lisieux Catholic Multi Academy Trust during the period 1 September 2019 to 31 August 2020 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 St Therese of Lisieux Catholic Multi Academy Trust and ESFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to the St Therese of Lisieux Catholic Multi Academy 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 St Therese of Lisieux Catholic Multi Academy 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 St Therese of Lisieux Catholic Multi Academy Trust’s funding agreement with the Secretary of State for Education dated 1 September 2018 and the Academies Financial Handbook, extant from 1 September 2019, 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 2019 to 2020. 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 2019 to 31 August 2020 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 Academies Accounts Direction 2019 to 2020 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 academy 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' and Trustee's 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 2019 to 31 August 2020 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 28 to 56 were approved by the trustees and authorised for issue on 14 December 2020 and are signed on their behalf by:
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 academy trust, which is a public benefit entity under FRS 102, have been prepared under the historical cost convention in accordance with the Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102), the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)), the Academies Accounts Direction 2019 to 2020 issued by ESFA, the Charities Act 2011 and the Companies Act 2006.
St Therese of Lisieux Catholic Multi Academy Trust meets the definition of a public benefit entity under FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
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 academy trust has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the academy trust’s ability to continue as a going concern. Thus they continue to adopt the going concern basis of accounting in preparing the accounts.
The Trustees have taken consideration of the effects of COVID-19 in making their assessment.
All incoming resources are recognised when the academy 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 academy trust has provided the goods or services.
Where assets and liabilities are received by the academy trust on conversion to an academy, the transferred net assets are measured at fair value and recognised in the balance sheet at the point when the risks and rewards of ownership pass to the academy trust. I ncome equal to the net assets transferred on conversion is r ecognised within d onations and capital grant income.
Where assets and liabilities are received on the transfer of an existing academy into the academy trust, the transferred net assets are measured at fair value and recognised in the balance sheet at the point when the risks and rewards of ownership pass to the academy trust. Income equal to the net assets t ransfer red is recognised within donations and capital grant income.
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 academy 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 academy trust's educational operations, including support costs and costs relating to the governance of the academy trust apportioned to charitable activities.
These include the costs attributable to the academy trust's compliance with constitutional and statutory requirements, including audit, strategic management, trustees' meetings and reimbursed expenses.
Assets costing £1,000 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. Where there are specific conditions attached to the funding that require the continued use of the asset, 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 the relevant assets is charged directly to the restricted fixed asset fund in the statement of financial activities. Where tangible fixed assets have been acquired with unrestricted funds, depreciation on such assets is charged to the unrestricted fund.
Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life, as follows:
The properties occupied by the academies are owned by the Nottingham Roman Catholic Diocesan Trustees. The academies have been granted a licence to occupy which can be revoked at any time. Therefore the properties have not been recognised within assets in the financial statements. To represent the value in use of these properties a notional rental charge equal to the rateable value of the properties has been included along with a corresponding donation in kind from the Nottingham Roman Catholic Diocesan Trustees.
The exception to this is the property occupied by St Bede's Catholic Voluntary Academy which is included on the balance sheet at written down value.
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 academy 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 payable under operating leases are charged against income on a straight-line basis over the period of the lease.
The academy trust only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the academy 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.
The academy 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 academy 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 academy 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 academy trust.
The TPS is an unfunded scheme and contributions are calculated to spread the cost of pensions over employees' working lives with the academy 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 based on quadrennial valuations using a prospective unit credit 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 academy 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 academy trust 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 with restrictions imposed by the funder/donor and include grants from the Department for Education Group.
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 academy 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 20, 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 2020. 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 funding received for coronavirus support covers £ 16,844 of cleaning and coronavirus protection costs. Theses costs are included in notes 7 and 9 below as appropriate.
The academy trust has provided the following central services to its academies during the year:
School Improvement Delivery
A full finance reporting and support service
Finance, Purchasing and Budget Management system
HR advice, career planning, training and support service
HR management system
Payroll & Pensions service
Internal and External audit
Legal advice
PR and crisis management
GDPR compliance
Health and Safety advice and guidance
Online governor platform
The Diocesan Levy contribution
Apprenticeship Levy
The academy trust charges for these services on the following basis:
flat percentage of GAG, 16+ and EYFS income currently set at 5%
Included in staff restructuring costs are non-statutory/non-contractual severance payments totalling £41,675 (2019: £64,479). Individually, the payments were: £21,579, £16,796 and £3,300.
The key management personnel of the academy trust comprise the trustees and the senior management team as listed on page 1. 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 academy trust was £3 28,051 (2019: £314,287).
No trustees have received remuneration or other benefits from an employment with the academy trust.
In accordance with normal commercial practice, the academy trust has purchased insurance to protect trustees and officers from claims arising from negligent acts, errors or omissions occurring whilst on academy trust business. The insurance provides cover up to £ 2,000,000 (per academy) on any one claim. The cost of this insurance is included in the total insurance cost.
The individual academies within the trust also occupy land and property owned by the Diocesan Trustees. Where there is no formal lease in place, these assets are not included in the above figures, as they are held based on an informal "licence to operate" in the properties owned by the Diocese. Enhanced detail is contained in the related party disclosure. St Bede's Catholic Voluntary Academy is an exception to this as they are party to a 125 year lease over their land and buildings.
There are a number of other pockets of leasehold land held within the trust that have no value attributed to them due to the prohibitive costs involved in determining a value.
Deferred income includes amounts received in advance relating to Universal Infant Free School Meals and trips.
The specific purposes for which the funds are to be applied are as follows:
General Annual Grant (GAG) must be used for the normal running costs of the Academy Trust.
Other DFE / ESFA Grants comprise of various grants awarded for specific projects, in particular to boost standards of attainment. Grants include Pupil Premium funding which is intended to support education for pupils from a disadvantaged background.
Local Government Grants include funding provided for pupils with Statements of Special Educational Needs and is used by the academy to assist with the pupils education.
Devolved capital funding is that provided to academies to use as it sees fit in areas such as improvements to buildings or facilities, or the repair or refurbishment of such.
Other capital grants are provided to the academy based on specific bids for individual projects.
Other income comprises various other receipts including school meals. The income is classed as restricted or unrestricted based on the nature of the income.
The pension reserve arises from the actuarial measurement of the Academy Trust's share of the Local Government Pension Scheme deficit. This is recorded as a provision. The actuarial cost of employing staff during the year is initially reflected in the normal running costs of the school in the restricted pension fund.
General Annual Grant must be used for the normal running costs of the Academy Trust. 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 2020.
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.
The academy 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 East Riding of Yorkshire Council, Lincolnshire County Council and Leicestershire County Council. Both are multi-employer defined benefit schemes. Both are multi-employer defined benefit schemes.
The pension costs are assessed in accordance with the advice of independent qualified actuaries. 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 £319,926 were payable to the schemes at 31 August 2020 (2019: £141,571) 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 £2,004,364 (2019: £1,387,235).
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 academy trust has accounted for its contributions to the scheme as if it were a defined contribution scheme. The academy 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 24.4% for employers and 5 to 7% 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 academy trust 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 trustees have an interest. All transactions involving such organisations are conducted in accordance with the requirements of the AFH and in accordance with the academy trust's financial regulations and normal procurement procedures relating to connected and related party transactions. The following related party transactions took place in the financial period.
The Trust paid contributions to Nottingham Roman Catholic Diocesan Education Service (NRCDES) totalling £59,233 (2019 - £59,348). This represents the standard contribution for membership and use of the Diocesan education service.
The Trust also paid NRCDES for professional fees and services arising during the year, totalling £5,992 (2019 - £19,768).
The Trust paid the Nottingham Roman Catholic Youth Service (NRCYS) for professional fees and services arising during the year, totalling £2,684 (2019 - £11,310).
In entering into these transactions, the academy trust has complied with the requirements of the Academies Financial Handbook 2019.
The element above £2,500 has been provided 'at no more than cost' and the Nottingham Roman Catholic Diocese , NRCDES and NDCYS ha ve provided a statement of assurance confirming this.
The trust received capital funding from the Diocese of £716,350 (2019 - £911,728).
The Academy Trust occupies land (including buildings) which are owned by The Nottingham Roman Catholic Diocese. The Academy Trust occupies the land and buildings under a mere licence. This continuing permission of their Trustees is pursuant to, and subject to, the Trustees' charitable objects, and is part of the Catholic Church's contribution since 1847 to provide State funded education in partnership with the State. The licence delegates aspects of the management of the land and buildings to the Academy Trust for the time being, but does not vest any rights over the land in the Academy Trust. The Trustees have given an undertaking to the Secretary of State that they will not give the Academy Trust less than two year ' s notice to terminate the occupation of the land and buildings.
Having considered the factual matrix under which the Academy Trust is occupying the land and buildings, the directors have concluded that the value of the land and buildings occupied by the Academy Trust will not be recognised on the balance sheet. A notional rental charge has been included in the financial statements to represent the donation of and the use of the land and buildings by the academy. This is based on the rateable value of each academy where the land and buildings is excluded from the balance sheet. The total amount of income and cost included is £655,500 (2019 - £655,500).
St Bede's Catholic Voluntary Academy is an exception to this, as in 2014 they became party to a 125 year lease to their land and buildings. This was due to an extensive new build at the Academy as part of the Building Schools for the future scheme.
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.