The trustees present their annual report together with the financial statements and independent auditor's report of the charitable company for the year 1 September 2022 to 31 August 2023. The annual report serves the purposes of both a trustees' report, a directors' report and a strategic report under company law.
The academy trust operates an academy for pupils aged 4 to 11 serving a catchment area in Bognor Regis. The trust follows West Sussex County Council admissions procedures and criteria. It has a pupil capacity of 630 and had a roll of 616 in the school census on 9 January 2023.
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 trustees of Downview Trust are also the directors of the charitable company for the purposes of company law. The charitable company operates as Downview Trust.
Details of the trustees who served during the year 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.
A trustee may benefit from any indemnity insurance purchased at the academy trust’s expense to cover the liability of the trustees which by virtue of any rule of law would otherwise attach to them in respect of any negligence, default or breach of trust or breach of duty of which they may be guilty in relation to the academy trust: provided that any such insurance shall not extend to (i) any claim arising from any act or omission which the trustees knew to be a breach of trust or breach of duty or which was committed by the trustees in reckless disregard to whether it was a breach of trust or breach of duty or not; and (ii) the costs of any unsuccessful defence to a criminal prosecution brought against the trustees in their capacity as directors of the academy trust.
The academy trust shall have the following trustees as set out in its articles of association and funding agreement:
3 members of the academy trust.
A minimum of 2 parent trustees who are elected by parents of registered pupils of the academy. A parent trustee must be a parent of a pupil at the academy at the time when they are elected. Where a vacancy for a parent trustee is required to be filled by election, the governing body shall take such steps as are reasonably practicable to secure that every person known to them to be a parent of a registered pupil at the academy is informed of the vacancy and that it is required to be filled by election, informed that they are entitled to stand as a candidate, and vote at the election, and given the opportunity to do so.
Up to 3 staff trustees appointed by the governing body (including the headteacher) who are employees of the academy trust. The total number of trustees who are employees of the academy trust shall not exceed one-third of the total number of trustees.
Up to 3 co-opted trustees. A co-opted trustee is appointed to be a director by being co-opted by trustees who have not themselves been so appointed.
Up to 3 member appointed trustees. The members may appoint trustees through such process that they determine.
The academy trust has a Trustee Induction Policy. The training and induction of new trustees include a tour of the academy and a chance to meet the staff and children. All trustees are provided with access to West Sussex Governor Training, The Key, an online resource for school leaders, including regular updates on practice, legislation and guidance. A new trustee is provided with an experienced ‘buddy’. All trustees are provided with a handbook, containing copies of policies, procedures, plans and other documents that will assist them in their role as trustees. The governing body as a whole engages in regular training delivered by school staff and individual trustees or external providers. Trustees contribute to whole school improvement planning.
The academy trust has a leadership structure which consists of the Governors, the Senior Leadership and Management Team (SLMT) and Lead Learners. The leadership structure aims to devolve and disperse responsibility and encourage involvement in decision-making at all levels. The Headteacher is the Accounting Officer.
The SLMT consists of the Headteacher, Deputy Headteacher, the academy's three Senior Lead Learners, six Heads of Year and SENDCO who make up the academy’s management and operational team. This team controls the academy trust at an executive level implementing the policies laid down by the governors and reporting back to them.
The governors are responsible for setting general policy, adopting an annual School Improvement Plan, approving the statutory accounts, monitoring the academy trust by the use of budgets and other data, and making major decisions about the direction of the academy trust, capital expenditure and staff appointments.
The Headteacher is responsible for the appointment of staff, though appointment panels for teaching posts often include a governor.
Arrangements for setting pay and remuneration of key management personnel
The arrangements for setting pay and remuneration of key management personnel are strictly in adherence with the school’s Pay Policy. This policy sets out the framework for making decisions on teachers' and support staff’s pay. It has been developed to comply with current legislation and the requirements of the School Teacher’s Pay and Conditions Document (STPCD).
In this school, all teachers can expect to receive regular, constructive feedback on their performance and are subject to an annual appraisal that recognises their strengths, informs plans for their future development, and helps to enhance their professional practice. Teachers and school leaders can expect to progress to the top of their pay range if they demonstrate continued good performance.
In the case of the leadership team, sustained, high-quality performance, confirmed by the most recent appraisal, should give the individual an expectation of progression up the pay range.
Pay progression
The governing body considers annually whether or not to increase the salary of members of the leadership who have completed a year of employment since the previous pay determination, and, if so, to what salary within the relevant pay range.
Pay progression based on performance for the leadership group
The governing body considers annually, whether or not to increase the salary of members of the leadership group. This will be determined by an assessment of performance carried out by the appointed governors responsible for appraising the Headteacher or, in the case of the Deputy, the Headteacher.
To be fair and transparent, assessments of performance will be properly rooted in evidence. In this school we ensure fairness by ensuring that objectives and assessments are consistent, the appointed governors will seek advice from an external adviser and the head teacher, deputy head teacher and senior leadership team will quality assure appraisal arrangements, including moderating objectives.
The evidence used includes:
Objectives that have been set for the leadership group
Peer reviews
Statistical measures
Performance of tasks delivered over and above the objectives achieved
Impact on school improvement priorities
Children’s outcomes and progress
Teachers’ Standards
Behaviours and attitudes (including those specified regarding personal and professional conduct as detailed in the Teachers’ Standards)
Advice of the independent advisor for the Headteacher, (or other external reports on the moderation of the school’s progress)
There are no related parties which either control or significantly influence the decisions and operations of Downview Primary School. There are no sponsors.
The school has a Parent Teacher Association which fundraises for the benefit of the children of Downview Primary School. This association is a registered Charity (no 1100187).
Downview Primary School is part of the Felpham and Bognor (FAB) group of schools. The schools have a Memorandum of Understanding (MOU) to foster good relationships, to share best practices, and to exploit the opportunities of collaboration to deliver benefits in terms of both financial efficiency and educational standards.
The principle object of the charitable company is the operation of Downview Primary School, to provide education and care for pupils of different abilities between the ages of 4 and 11.
In accordance with the Articles of Association, the charitable company has adopted a Funding Agreement approved by the Secretary of State for Education. The Funding Agreement specifies, amongst other things:
That the school has a curriculum that is balanced and broadly based;
That it provides for pupils of different abilities; and
That it provides education for pupils who are wholly or mainly drawn from the area in which the school is situated.
Objectives, strategies and activities
The principle objective of the academy trust is to advance for the public benefit education in the United Kingdom, in particular but without prejudice to the generality of the foregoing by establishing, maintaining, carrying on, managing and developing schools offering a broad and balanced curriculum or educational institutions which are principally concerned with providing full-time or part-time education for children of compulsory school age who, because of illness, exclusion from school or otherwise, may not for any period receive suitable education unless alternative provision is made for them.
The aims of the academy trust during the period ended 31 August 2023 are summarised below.
At Downview Primary School we grow and learn together every day. For all children to reach their potential we aim to:
Ensure that teaching and learning are consistently of the highest quality
Provide an inspiring, supportive and safe environment
Enable every child to participate in all aspects of school life
Nurture and encourage each child to take their place in society as an active, responsible and respectful citizen
Our school is a community in which an attitude of consideration and respect is promoted and in which children, staff and parents are happy to be part of a happy and caring environment.
To achieve this, we aim to:
Develop a wide range of skills for learning: Collaboration, Communication, Co-operation, Creativity, Independence, Resilience
Develop self-confident and healthy individuals
Acquire essential knowledge and understanding in all areas of learning and experience as well as foster an enthusiastic attitude to learning
Key priorities for the year are outlined in our School Improvement Plan (SIP). Our main priorities for the year ended 31 August 2023 were to improve learning in our school by raising standards, narrowing the gap and for a higher percentage to attain end-of-year expectations, in particular;
To support the mental health and wellbeing of all staff and children
To continue to improve the quality of teaching and learning for all children, with a particular focus on children with gaps in learning, leading to rapid progress
To increase the number of children attaining age-related expectations from lower entry points in reading, writing and maths
To develop a reading environment which contributes to raising reading standards
To continue to develop a coherent foundation subject curriculum
To maximise the number of children ready to progress to the next year group.
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.
In setting our objectives and planning our activities the trustees have carefully considered the Charity Commission's general guidance on public benefit.
This was the second year of national tests since COVID-19 which has allowed the government to continue to assess the impact of the pandemic on our pupils. The results for 2022/23 will be published on the website. Throughout the year staff maintained close tracking of pupil progress, this was monitored by middle and senior leaders. Staff training, targeted interventions (including recovery / catch-up), high aspirations and quality first teaching contributed to furthering and accelerating pupil progress. Governors evidenced this from classroom visits, discussions with children and staff and through data analysis at committee meetings.
The following actions taken to ensure that the school was making good progress towards the achievement of its objectives from the school improvement plan 2022/23 were notable:
All children received good quality learning experiences
New intent, implementation and impact curriculum was maintained
The new behaviour policy was implemented consistently with improved outcomes
Other strategies that have been in place this year:
Continue to implement and review policies and processes
Professional development for Foundation Subject Leaders
Work with EYFS County Advisor
Within the curriculum, there is a responsibility to develop children academically but also to develop them spiritually, morally, socially and culturally (SMSC). SMSC is a particular strength in our school. Children had many opportunities to develop in terms of music, sports and educational visits. During the year, children had the opportunity to participate in a variety of sporting competitions. We are a large, friendly, inclusive primary school serving a diverse and vibrant community. Downview began expanding to a 3-form entry primary school in September 2015 and now has 3 forms in each year group. Not only do we aim for seamless transitions between the year groups in our school, we also place great emphasis on the initial start children make to Downview. We equally place great emphasis on the independence of our year 6 children and on their preparation for secondary school. The children's attitude to learning and their behaviour is good. The school has a good reputation within the community. The academy trust continues to be popular with parents with the majority of year groups full and a waiting list maintained for some year groups.
The emotional health and wellbeing of pupils and staff has once again taken priority. The school continues to support pupils to ‘catch up’ and close identified gaps in learning at a rate that is appropriate for each pupil.
The school will aim to continue to:-
Ensure the focus on recovery includes all aspects of children’s development
Ensure children are motivated and self-motivated to learn and to reflect on their improvement targets
Make well-considered decisions regarding expenditure
Ensure resources are deployed appropriately
Ensure staff receive appropriate training to provide even more innovation in the classroom
Embed monitoring in core and foundation subjects, to enable us to continue to monitor the curriculum and review results and predictions for all pupils, including vulnerable groups.
Key performance indicators
Achieving attendance statistics in-line (95%) or better than national averages
Continued good purchasing
Continued good governance and oversight
Sustaining good Ofsted judgement since Feb 2019
Achieving below national averages of fixed-term suspensions and permanent exclusions (0.2%)
Receiving positive feedback (96%) from pupil surveys of happiness and healthy relationships at school
To continue to ensure a balanced budget and effective financial management
To ensure the school is full with waiting lists – 3/7 year groups have waiting lists
At Downview Primary School we grow and learn together every day. All members of our school community actively contribute to this vision. There is a very strong learning culture that enables us to move forward and respond to the needs and aspirations of our children and the influences of the wider community. In this context, our aim is to educate the whole child providing an expansive education, which develops powerful and independent learners. Our curriculum actively promotes the British Values of democracy, rule of law, individual liberty and mutual respect and tolerance of those with different faiths and beliefs. Our learning skills of Communication, Collaboration, Creativity, Independence, Resilience and Risk-taking are evident throughout the school.
The school is proud of its achievements and has been awarded the Platinum mark for school sports, the Platinum KS1 Quality Start in PE, Quality Mark for Basic Skills V, Modeshift Stars Travel Award, Dyslexia Award, Enhanced National Healthy Schools Status and Sing Up.
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.
The trust is reassured that considerably more funding will be received than previously. The school, again received increased per pupil funding in 2022-23. The National Funding Formula is levelling up school funding. Funding through the schools NFF is increasing by 1.9% overall in 2023-24, and this will continue to increase by 1.9% during 2024-25. Taken together with the funding increases seen in 2023-24, this means that funding through the schools NFF will be 7.6% higher per pupil in 2023-24, compared to 2022-23.
The trust’s reserves policy is sound and the revenue reserves are not locked into any major contracts, nor currently set aside for any projects and may be used for any purpose, within the scope of the funding agreements and Academies Trust Handbook.
The trust prepared forecasts for a 3 year period and considered a range of possible options in order to set a balanced budget, in the years to come. These will be thoroughly reviewed and revised on a termly and annual basis with the most up to date current information known.
There are no material uncertainties relating to the potential impacts of uncertain future events or changes in conditions on the academy and any mitigating actions would be taken as required. There are no threats to solvency and liquidity when considering the principal risks and uncertainties faced by the academy trust.
For these reasons the board of trustees continues to adopt the going concern basis in preparing the financial statements.
Further details regarding the adoption of the going concern basis can be found in the statement of accounting policies.
The principal source of funding for the academy trust is the General Annual Grant (GAG) and other government funding, the use of which is restricted to particular purposes. This has been utilised in a manner which serves the best interests of the school and its pupils. The objective of the academy trust is to advance, for the public benefit, education in the United Kingdom in particular to establish, maintain, carry on, manage and develop a school offering a broad balanced curriculum.
The grants received during the year ended 31 August 2023 and the associated expenditure are shown as restricted funds in the statement of financial activities (SOFA).
During the year ended 31 August 2023 the main expenditure item was salary costs. During this period the total expenditure (excluding restricted fixed asset funds) of £3,041,475 was covered by recurrent government funding from the ESFA together with other incoming resources and accumulated reserves brought forward.
The in-year deficit position of general funds (excluding pension reserve and fixed assets) was £29,962 as a result of the increased government funding in the year and a prudent approach to spending given the current economic uncertainty. The balance of general funds (excluding pension reserve) at the year-end was £499,156.
The restricted fixed asset fund has mainly arisen from the introduction of the leasehold buildings and land at fair value on conversion of the school to academy status, together with capitalised costs following the transfer of new fixed assets donated by the local authority. The fund is reduced by annual depreciation charges over the expected useful life of the assets concerned. The assets were used exclusively for providing education and the associated support services to the pupils of the academy trust. On 31 August 2023, the net book value of fixed assets was £5,526,084.
The trustees review the reserve levels of the academy trust on a regular basis. The review includes the income and expenditure streams, the need to match income with commitments and the nature of any reserves. The trustees believe that the funding received in any one year should be used to support the children on roll at the time unless there is a specific project which will require the accumulation of funding over more than one year. The trustees also wish to ensure the stability of our organisational operations and so, reserve levels should enable the school to react quickly to changes in financial circumstances, for example, large unplanned expenditure. The long term aim, considered prudent, would be to reserve 8% of GAG funding, at 31 August 2023, this was approximately £211k, to enable when possible to ensure adequate working capital cover for delays between spending and the receipt of grant monies as well as to provide for urgent unexpected emergencies expenditure, e.g. emergency repairs to building pending insurance claims, meet building improvement costs or maintain staffing levels. Trustees take prudent steps to maintain the assets of the Trust in the current economic climate.
The Trustees are aware that the current level of reserves exceeds the stated ratio to expenditure outlined in our Reserves Policy. The board believes that a healthy reserves balance protects the Trust against potential risks that could impede us from achieving the educational outcomes to which we aspire. We also anticipate an investment of capital into Nurture Provision including staffing, Early Years, Year 1 & 2 outdoor learning provision and the IT, networking and cyber security management over the coming year. A full review of the Trust's reserves policy is due to be carried out by Spring 2024, in which consideration will be given to the appropriate level of reserves required in the future. Therefore taking into account the need to allow for expansion (1% of budget, a cost of 25K), investment in school improvement (1% of budget, a cost of 25K), the rising costs for staff (1% of budget, a cost of 25k) and contingency for inflationary energy price increases (2.5% of budgeted expenditure for 6 months, 37.5K would support the inflationary pressure). There is also additional spending planned to upgrade the EYFS outdoor provisions. The Trustees understand the need to manage within a budget and are keen to retain as much of a surplus as possible without detrimentally affecting the education of the children. The trustees recognise that this level of reserves can be difficult to maintain in the current economic climate.
The school should receive an increase per pupil funding for the academic year 2024/2025. The school are reassured that through the Fair Funding formula the school will receive considerably more funds than previously. Funding through the schools NFF is increasing by 1.9% overall in 2023-24. The trust reviews pupil numbers on a termly basis as well as reviewing budget forecasts over 3 years and has fully considered a range of possible options in order to maintain the reserves position at policy level over the coming years. The majority of options focus on staff re-structuring and changing roles; using existing staff for CPD and sickness cover. Achieving savings are difficult in times of austerity and rising costs but each service level agreement is reviewed and all procurement of resources are thoroughly researched using the DfE guidance to help achieve value for money at the same time as securing high quality services and resources in the enhancement of the trust's objectives. The School Resource Management tool is used. The key objective of achieving value for money improving both the educational and wider societal outcomes for our children within the resources available drives decision making. Any cost saving options have been discussed in full at each Audit and Risk, Finance and Staffing committee meetings. During budget setting meetings, decisions will be made that will be required to implement from the following September.
The academy has £211,400 in the unrestricted fund as at 31 August 2023. This reserve has been generated over a number of years. The fund is freely available for its general purposes and has been held as an accumulating fund for major capital projects, additional training and resources. As at 31 August 2023 there was £287,756 of restricted general funds (excluding pension reserve) available to carry forward, giving total available general (excluding pension reserves) £499,156. The available reserves at 31 August 2023 are therefore above with the target level of resources noted above. The Trustees are happy with current reserves and regularly review ways to improve reserve levels and identify opportunities to use excess funds for the benefit of the school.
There are no material investments held by the academy trust other than cash balances. Cash balances are invested in such a way that the cash is readily accessible whilst a small return has been generated by way of interest earned. The trustees are satisfied with the interest earned on the cash balances in the year.
Governors have considered the principle risks and uncertainties that the academy trust may be exposed to and, in particular, those related to the operation and finance of the academy trust and are satisfied that systems are in place to mitigate any exposure to major risks. Policies and controls have been designed so that these risks can be quickly identified, allowing the academy trust to respond swiftly in order to eliminate them The School’s Risk Management Strategy is thoroughly reviewed by the members on an annual basis and then at least termly by governors. The review is informed by evidence gathered from a range of sources, nationally and locally. Strategies for mitigating any growing risks are implemented as swiftly and as appropriately as possible.
Reputational / Finance risk
Poor academic outcomes e.g. school results fall below floor targets in Reading, Writing and Maths
Failure to meet ESFA funding agreement requirements
Mismanagement of school funds
Reputational Risk
Reputational damage to the trust from required restructuring and redundancies
Any other adverse publicity
Strategic risk
Major changes to the political agenda
Financial Risk
Reduction in net funding to schools
Financial fraud or theft
Falling pupil numbers
Pensions risk
Operational risk
Disruption to school premises caused by fire, theft, flood, building work or other problems (including RAAC)
Unexpected absence of key staff due to sickness, industrial action or employment disputes
Sudden incapacity or death of senior officer of the Trust
Successful admissions appeals by parents
Operational / Financial
Difficulty recruiting to key posts
Operational / Reputational
Injury to a pupil or member of staff on-site or off-site, including COVID-19 related illness
Compliance
Failure to comply with statutory regulations e.g. health & safety, data protection, equal opportunities
Failure to comply with statutory guidance in making the school COVID-19 secure
.
The academy trust does not undertake fundraising activities on its own behalf. A registered charity, Friends of Downview (1100187) exists to raise funds for the benefit of the Downview children. Its objectives are to provide a contribution towards enrichment equipment and to run activities for the enjoyment of children and parents. As a separate legal entity, Friends of Downview is required to comply with the Charity Commission regulations on fundraising. The academy trust maintains appropriate oversight of Friends of Downview by holding regular meetings with the charity trustees to discuss the activities planned and items to be funded, to ensure that they are in-keeping with the values of the academy trust.
There were no complaints received from any fundraising activities.
Volunteers
Volunteers are warmly welcome in the school.
Many parents and grandparents hear readers on a weekly basis, or offer general classroom support. Many school visits are also supported by parent volunteers.
The school values the PTA support given to the school, the PTA remained active throughout the whole year, arranging fundraising events which involved the whole community and additional events for the children.
The academy trust will continue to strive to improve the performance of its pupils at all levels and will continue its efforts to ensure its pupils get the best start to their educational career. The school improvement plan drives the work of the school in ensuring gaps in learning are reduced as much as possible and increasing the number of pupils reaching age related expectations at the end of the year. This involves training in key areas of teaching and learning, including Reading & phonics, Writing & Maths and subject leadership development. The trustees plan to build on existing collaborations with other MATs.
The academy trust does not hold funds on behalf of others.
A resolution proposing that Sumer Audit 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,
As trustees we acknowledge we have overall responsibility for ensuring that Downview 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 accounts of the guidance in DfE's Governance Handbook and Competency Framework for Governance.
The board of trustees has delegated the day-to-day responsibility to the 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 Downview Trust and the Secretary of State for Education. They are also responsible for reporting to the board of trustees any material weaknesses or breakdowns in internal control.
The information on governance included here supplements that described in the Trustees' Report and in the Statement of Trustees' Responsibilities. The full board of trustees has formally met, using a mixture of Microsoft teams and face to face 4 times during the year. This is in addition to termly committee meetings. Attendance during the year at meetings of the full board of trustees was as follows:
The trust recognise strong governance is a key part of a successful school. The three core functions underpin the work of the committees and full governing body (FGB):
Ensuring clarity of vision, ethos and strategic direction
Holding executive leaders to account for the educational performance of the organisation and its pupils and the performance management of staff
Overseeing the financial performance of the organisation and making sure its money is well spent
The trust has created and implemented a Governor Development Plan which outlines their key priorities:-
Hold leaders to account
Show consistent evidence of challenge and support
Assign Governors to Year groups
Assess GB for training needs
Consider potential growth of the MAT
On a regular basis, the governors review this plan, using ‘Being Strategic A guide for governing boards’ and information from NAGA. Governors are focussed on continuing to develop skills and practices in school improvement. The Chair of Governors met with the Headteacher regularly throughout the year, either in person or via Microsoft Teams. Financial benchmarking against similar schools is undertaken. Attainment and progress information is scrutinised. Any external views alongside national information ensure the board are provided with a high quality of information about which judgements can be formed and further supports the work of the governing body and the school.
New members complete a skills and expertise checklist on induction. The board recognise individual knowledge, skills and expertise which allows the board to effectively fulfil its duties and responsibilities in holding the school to account. The board continue to recognise the need to continue to devote time to succession planning.
Governors undertake a formal self-review on an annual basis and develop actions to consider regarding developing still further. The Trust has bought into the West Sussex SLA for Governance and this alongside the Governance Hub enables governors to update their knowledge and participate in training. The Trust will review this in July 2024
Audit and Risk committee
The Audit and Risk committee is a sub-committee of the main board of trustees.
Responsibilities
To maintain an oversight of the academy trust’s (AT’s) financial, governance, risk management, internal control systems
To report its findings termly and annually to the Trust Board and the Accounting Officer as a critical element of the AT’s annual reporting requirements
The Audit Committee has no executive powers or operational responsibilities/duties
Authority
The Audit and Risk Committee is a part of but separate to the Finance and Audit Committee which is a Committee of the Academy Trust Board and is authorised to investigate any activity within its terms of reference or specifically delegated to it by the Board.
Specifically the Audit Committee will:
Oversee the Trust’s Risk Register and, on the advice of the CEO/ Accounting Office and CFO, conduct a regular review of risks
Take delegated responsibility on behalf of the Board of Trustees for examining and reviewing all systems and methods of control both financial and otherwise including risk analysis and risk management; and for ensuring the Trust is complying with the overall requirements for internal scrutiny, as specified in the Academies Financial Handbook
Agree an annual programme of internal scrutiny with the trust’s internal auditors for checking financial systems, controls, transactions and risks
Ensure that the programme of internal scrutiny delivers objective and independent assurance
Provide assurance to the Trust Board that risks are being adequately identified and managed
Attendance at meetings in the year was as follows:
Trustees
Meetings attended Out of possible
Mrs E Purkis 2 2
Mrs F Hawkins 1 1
Mrs G Harmsworth 3 3
Mr J Houston 3 3
Mrs C Youdell 3 3
Mrs A O’Boyle 1 2
The Finance and Staffing committee is a sub-committee of the main board of trustees.
The committee will be generally responsible for advising the governing body on all financial matters including the monitoring of those delegated to the Headteacher, to maintain an oversight of the academy trust’s governance, risk management, internal control and value for money framework.
Specifically, the committee will be responsible for the following:
Finance
To receive and monitor, once per school term, a statement of income and expenditure on all funds against budget made up to within one calendar month of the meeting. Headteacher and Chair of Governors to receive management accounts monthly. Finance, Audit and Staffing Committee to receive monthly management accounts four times per year at committee meetings and twice via email in between meetings.
To make recommendations to the full governing body at each June meeting, having considered the draft budget.
Levels of delegation: to review annually the levels of delegation to the Headteacher for the day-to-day financial management of the school.
When necessary, authorise cheque signatories for the school bank account.
Ensure a Register of Pecuniary and Business Interests for governors and staff is kept and is open to inspection.
In addition, the governing body must ensure the academy has adequate insurance cover to support its activities as an employer, such as employers’ liability insurance, fidelity insurance, trustee indemnity, public liability insurance and so forth.
Staffing
Decide arrangements for all staff appointments, except for the appointment of the Head and Deputy Headteacher which is the responsibility of the full governing body.
To ensure that this committee is advised on the drafting/adoption and implementation of appropriate personnel policies and procedures using models as set out in the Local Authority’s HR guide including any actions taken
To review the staffing structure at least annually in relation to the School Improvement Plan and to submit recommendations as necessary on staff establishment numbers (both teaching and non-teaching) and allowances, having regard to the School Pay Policy.
To advise the governing body on arrangements for the appointment of the Head or Deputy.
To ensure compliance with the school’s recruitment and selection policy using the LA model.
To select appointment panels up to a minimum of one non-staff governor, to include the Headteacher, to deal with the appointment of teachers. (The procedures to be followed are delegated to the Headteacher to decide depending on the particular posts to be filled).
To monitor the school’s Sickness, Absence, Grievance Procedure, Capability and Disciplinary Policies as required.
To monitor staff and pupil welfare through an agenda item at each meeting.
This committee will report its findings annually to the governing body and the accounting officer as a critical element of the trust’s annual reporting requirements. It has no executive powers or operational responsibilities/duties.
Attendance at meetings, via Microsoft Teams, in the year was as follows:
Trustees Meetings attended Out of possible
Mrs E Purkis 2 2
Mrs F Hawkins 1 1
Mrs S Hawthorn
Mrs G Harmsworth
Mrs C Youdell 3 3
Mr J Houston 3 3
As accounting officer the principal 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 or by using a framework where appropriate. The accounting officer for the academy trust has delivered value for money during the year.
Downview Primary School constantly reviews its quality of teaching and curriculum provision to ensure that teaching and learning is based around the needs of the school community and builds upon previous learning.
The school continues to develop a tracking system for individual pupils and provides a range of interventions that track attainment and progress from EYFS to KS2 designed to close any gaps that have appeared due to the COVID-19 closures and the impact of the ongoing global pandemic. These are designed to address any potential under-attainment. Recovery/ catch up interventions are carefully planned to meet specific needs, many of which have resulted from the disruptions due to COVID-19. The school continually compares itself to other schools nationally where possible and is committed to closing the achievement gap with all groups of children.
Improving educational outcomes for pupils at Downview: in the widest sense, developing good learners with improved life chances, as well as improving pupil attainment and progress. The school has used its resources in pursuit of its principle aim for all children to reach their potential.
We have ensured that resources are directed where they are most needed and most effective in meeting educational requirements, by initially targeting resources in line with the School Improvement Plan, for example:
Effective professional development of all staff in the teaching of maths, writing and reading
Effective professional development of all staff in meeting the emotional needs of children, specifically the impact of anxiety, trauma and attachment on children’s development
Effective professional development of all staff in managing behaviour and attitudes of children
Effective professional development of all staff in managing Foundation Subject areas
Purchasing CGP books to support the practising of grammar and punctuation, reading and maths skills
Purchasing additional laptops to support teaching and learning across the curriculum
Purchasing new IT support in main hall to support teaching and learning across the curriculum
Purchasing additional materials to supplement the Phonics scheme and decodable books
Purchasing additional Lexia licences to support the teaching of spelling, reading and writing
Deployment of higher level teaching assistants to support small group work
Recruitment of additional high quality teaching assistants to support individual children
Developing further assessment, tracking and monitoring processes to ensure data is used to inform planning, target focussed interventions and support differentiation, including regular pupil progress meetings involving Senior Leaders to review progress and impact of interventions for different groups of children
Developing staff appraisal processes for the effective monitoring and evaluation of performance
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 Downview Trust for the period 1 September 2022 to 31 August 2023 and up to the date of approval of the annual report and financial statements.
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 2022 to 31 August 2023 and up to the date of approval of the annual report and financial statements. This process is regularly reviewed by the board of trustees.
The 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 monthly financial reports which are reviewed and agreed by the board of trustees
regular reviews by the finance committee of reports which indicate financial performance against the forecasts and of major purchase plans, capital works and expenditure programmes
setting targets to measure financial and other performance
clearly defined purchasing (asset purchase or capital investment) guidelines
delegation of authority and segregation of duties
identification and management of risks
The board of trustees has considered the need for a specific internal audit function and decided to engage Auguste & Auguste as internal auditors to undertake the requirements for Internal Scrutiny according to the Academies Trust Handbook 2022. This option has been chosen to be compliant with the Academies Trust Handbook.
The Internal Auditor's role includes giving advice on financial and other 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:
Testing of payroll systems
Testing of purchase systems
Testing of income control, account / bank reconciliations
Testing of the accounting system
On an annual basis, the internal auditor reports to the board of trustees', through the audit and risk committee on the operation of the systems of control and on the discharge of the board of trustees' financial responsibilities. On an annual basis the internal auditor prepares a 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.
The Internal Auditor reports to the Audit and Risk Committee through a standing agenda item. Any suggestions that might support the work of the Finance Officer are implemented. The Trust may confirm that the Internal Audit has delivered their schedule of work as planned, no material control issues or suggestions were arising as a result of the Internal Auditor’s work.
As accounting officer the 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 Audit and Risk committee
The work of the Finance and Staffing committee
The work of the external auditor
The work of the internal auditor
The work of the School Business Manager within the academy trust who has responsibility for the development and maintenance of the internal control framework
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
correspondence from ESFA
The accounting officer has been advised of the implications following the review of the system of internal control by the finance, audit and staffing 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 Downview 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, including for estates and safety management, 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 Trust Handbook 2022, including responsibilities for estates and safety management.
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 Academy Trust Handbook 2022.
I confirm that the following instances of material irregularity, impropriety or funding non-compliance discovered to date have been notified to the board of trustees and ESFA. If any instances are identified after the date of this statement, these will be notified to the board of trustees and ESFA:
Financial issues
An incorrect submission of census data in October 2022 was not rectified ahead of the database closure date, resulting in an estimated loss of £33k of UIFSM funding to which the trust was entitled.
Opinion
give a true and fair view of the state of the charitable company's affairs as at 31 August 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
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 2022 to 2023.
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.
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 academy 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 other information comprises the information included in the annual report other than the accounts and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the accounts themselves. 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' report including the incorporated strategic report for the financial year for which the accounts are prepared is consistent with the accounts; and
the trustees' report including the incorporated strategic report have 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' report, 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 statement of trustees' responsibilities, 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.
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.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
Obtaining an understanding of the legal and regulatory framework that the charitable company operates in, focusing on those laws and regulations that had a direct effect on the financial statements and operations;
Obtaining an understanding of the charitable company's policies and procedures on fraud risks, including knowledge of any actual, suspected or alleged fraud; and
Discussing among the engagement team how and where fraud might occur in the financial statements and any potential indicators of fraud through our knowledge and understanding of the charitable company and our sector-specific experience.
As a result of these procedures, we considered the opportunities and incentives that may exist within the charitable company for fraud. We are also required to perform specific procedures to respond to the risk of management override. As a result of performing the above, we identified the following areas as those most likely to have an impact on the financial statements: employment law and compliance with the UK Companies Act, Academies Accounts Direction 2022 to 2023 and the 2022 Academies Trust Handbook.
In addition to the above, our procedures to respond to risks identified included the following:
Making enquiries of management and those charged with governance about any known or suspected instances of non-compliance with laws and regulation, fraud or any actual or potential litigation and claims against the charitable company;
Reviewing minutes of meetings of the board of trustees, senior management and the audit committee;
Reviewing internal scrutiny reports for the academic year;
Reviewing financial statement disclosures to assess compliance with applicable laws and regulations;
Reading correspondence with regulators;
Review and assess compliance with the Academies Trust Handbook 2022 and issue a separate report on compliance with regularity requirements;
Challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to the local government pension scheme; and
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.
Due to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://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 5 November 2021 and further to the requirements of the Education and Skills Funding Agency (ESFA) as included in the Academies Accounts Direction 2022 to 2023, we have carried out an engagement to obtain limited assurance about whether the expenditure disbursed and income received by Downview Trust during the period 1 September 2022 to 31 August 2023 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 Downview Trust and ESFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to the Downview 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 Downview 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 Downview Trust’s funding agreement with the Secretary of State for Education dated 19 August 2013 and the Academies Trust Handbook, extant from 1 September 2022, 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 2022 to 2023. 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 2022 to 31 August 2023 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 academy trust's income and expenditure.
The work undertaken to draw to our conclusion includes:
Consideration of the evidence supporting the accounting officer’s statements on regularity, propriety, and compliance;
Review of procedures and controls ensuring their adequacy, compliance and appropriateness;
Analytical procedures on the general activities of the academy trust;
Planning of assurance procedures including identifying key risk areas;
Further testing and review of the areas identified through the risk assessment including the testing and identification of control processes and examination of supporting evidence as well as additional verification and substantive testing on individual transactions.
A review of minutes of committees and board meetings which may be relevant to regularity;
Consideration of discussions with key personnel including the accounting officer and governing body.
In the course of our work, except for the matters listed below, nothing has come to our attention which suggests that in all material respects the expenditure disbursed and income received during the period 1 September 2022 to 31 August 2023 has not been applied to purposes intended by Parliament and the financial transactions do not conform to the authorities which govern them.
Matter 1 – as disclosed in the Statement of Regularity, Propriety and Compliance, an incorrect submission of census data in October 2022 was not rectified ahead of the database closure date, resulting in as estimated loss of £33k of UIFSM funding to which the trust was entitled.
The accounts 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 financial statements 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 2022 to 2023 issued by ESFA, the Charities Act 2011 and the Companies Act 2006.
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 £1.
The charity is a company limited by guarantee and has no share capital.
The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the 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 financial statements. The trustees have reviewed the trust's three year budget forecast return which demonstrates the trusts ongoing viability over that period, taking into account rising cost pressures and inflationary impacts. Within this context the trustees 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 financial statements.
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
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.
Capital grants are received for capital purposes and must be spent in line with the terms and conditions of the grant.
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.
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.
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 £3,000 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 academy trust's depreciation policy. 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:
Assets in the course of construction are included at cost. Depreciation on these assets is not charged until they are brought into use and reclassified to freehold or leasehold land and buildings.
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 or services it must provide.
Rentals under operating leases are charged 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 as detailed in note 13. 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 as detailed in note 14. 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.
The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees' working lives with the academy 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 prospective unit credit method. As stated in note 17, the TPS is a multi-employer scheme and there is insufficient information available to use defined benefit accounting. The TPS is therefore 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 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 operating surplus 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.
If the present value of the defined benefit obligation at the reporting date is less than the fair value of plan assets at that date, the plan has a surplus. A plan surplus, as a defined benefit plan asset, is only recognised to the extent that it can be recovered either through reduced contributions in the future or through refunds from the plan.
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 Education and Skills Funding Agency/Department for Education.
Accounting estimates 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 17, 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 2023. 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 or asset.
The income from donations and capital grants was £38,708 (2022: £17,664) of which £nil (2022: £nil) was unrestricted, £nil (2022: £7,116) was restricted and £38,708 (2022: £10,548) was in relation to restricted fixed asset funds.
The income from funding for educational operations was £3,003,139 (2022: £2,818,003) of which £13,385 was unrestricted (2022: £7,536) and £2,989,754 was restricted (2022: £2,810,467).
The income from other trading activities was £54,484 (2022: £79,189) of which £11,070 was unrestricted (2022: £26,357) and £43,414 was restricted (2022: £52,832).
All income from investments in the current and prior year is unrestricted.
The expenditure on educational operations was £3,168,383 (2022: £2,988,865) of which £2,427,927 (2022: £2,348,254) related to staff costs, £369,126 (2022: £290,540) related to premises and equipment, and £371,331 (2022: £350,071) related to other costs.
The expenditure on educational operations was £3,168,383 (2022: £2,988,865) of which £1,035 (2022: £1,368) was unrestricted, £3,040,440 (2022: £2,891,891) was restricted and £126,908 (2022: £95,606) was restricted fixed assets.
The above employee participated in the Teachers' Pension Scheme.
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 £691,170 (2022: £568,533).
One or more trustees has been paid remuneration or has received other benefits from an employment with the academy trust. The headteacher and other staff trustees only receive remuneration in respect of services they provide undertaking the roles of headteacher and staff members under their contracts of employment, and not in respect of their services as a trustee.
The value of trustees' remuneration and other benefits was as follows:
Mrs M Williams (headteacher)
Remuneration: £Nil (2022: £85,000 - £90,000)
Employer’s pension contributions: £Nil (2022: £20,000 - £25,000)
Mrs E Purkis (headteacher)
Remuneration: £40,000 - £45,000 (2022: £Nil)
Employer's Pension contributions: £10,000 - £15,000 (2022: £Nil)
Mrs F Hawkins (staff trustee)
Remuneration: £20,000 - £25,000 (2022: £Nil)
Employer's pension contributions: £5,000 - £10,000 (2022: £Nil)
Mrs J Twine (staff trustee)
Remuneration: £40,000 - £45,000 (2022: £40,000 - £45,000)
Employer's Pension contributions: £5,000 - £10,000 (2022: £5,000 - £10,000)
It should be noted that remuneration disclosed only covers the period for which staff were trustees.
During the year ended 31 August 2023, £1,004 were reimbursed in relation to expense claims consisting of teaching resources, office suppliers and subsistence costs (2022: £2,558 was reimbursed in relation to a number of subsistence and office expenses).
Other related party transactions involving the trustees are set out within note 21.
The academy 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 academy 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.
At the balance sheet date the Academy Trust was holding funds received in advance of £29,444 of Universal Infant Free School Meals and £9,207 of Special Educational Needs funding which relate to the 2022/23 academic year.
The specific purposes for which the funds are to be applied are as follows:
GAG funds are restricted to providing education and funding the academy's operating costs.
UIFSM funding provides funding to offer free school meals to pupils in reception, year 1 and year 2.
Pupil premium funding is provided to improve education outcomes for disadvantaged pupils.
Catch-up premium is provided to help pupils and disadvantaged young people catch up on missed education due to COVID-19.
Other DfE/ESFA grants relate to reimbursement for specific services and funding the academy's operating costs
Other government grants are in relation to funding the academy's operating costs as well as towards the costs of providing special education needs.
Other restricted funds are held to provide trips and other activities to students and for the provision of education.
Capital grants are received for capital purchases and must be spent in line with the terms and conditions of the grant.
The academy trust is not subject GAG carried forward limits.
During the year the academy transferred £87,158 (2022: £23,063) from GAG funding to cover the deficit in the year on UIFSM of £35,000 and capital expenditure to be covered by GAG of £52,158 (2022: £22,672) and other government grants of £nil (2022: £391).
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 West Sussex 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 2022.
Contributions amounting to £46,065 (2022: £41,512) were payable to the schemes at 31 August 2023 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 academy trusts. 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 theTPS 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 2024.
The employer's pension costs paid to the TPS in the period amounted to £295,110 (2021: £267,603).
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 made for the year ended 31 August 2023 was £151,815 (2022: £131,585), of which employer's contributions totalled £119,036 (2022: £103,604) and employees' contributions totalled £32,779 (2022: £27,980). The agreed contribution rates for future years are 22.5% for employers and 5.5 to 12.5% 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 and on 21 July 2022, the Department for Education reaffirmed its commitment to the guarantee, with a parliamentary minute published on GOV.UK.
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 trust has an interest. All transactions involving such organisations are conducted in accordance with the requirements of the AFH, including notifying the ESFA of all transactions made on or after 1 April 2019 and obtaining their approval where required, and the the academy trust's financial regulations and normal procurement procedures relating to connected and related party transactions.
During the 31 August 2023, there were amounts totalling £924 (2022: £nil), paid to the son of the Head Teacher for ad-hoc staff support hours throughout the financial year. There were no balances outstanding at year end (2022: £nil). Other related party transactions include trustees' remuneration and expenses already disclosed in note 10.
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.
The accounts for the year ended 31 August 2022 reported a nil liability / surplus position for the trust’s share in the West Sussex Pension Fund. This was based on the accounting policy to not recognise a plan surplus, as detailed in note 1.10, with the actuarial report showing a surplus position. Subsequent to the approval of the accounts a revised actuarial valuation was received reporting a pension scheme liability of £113,000. The prior year figures have therefore been adjusted to recognize this liability, with no impact on net income.