Company registration number 07506598 (England and Wales)
AVANTI SCHOOLS TRUST
(A COMPANY LIMITED BY GUARANTEE)
ANNUAL REPORT AND ACCOUNTS
FOR THE YEAR ENDED
31 AUGUST 2023
31 August 2023
AVANTI SCHOOLS TRUST
CONTENTS
Page
Reference and administrative details
1 - 2
Directors' report
3 - 15
Governance statement
16 - 22
Statement on regularity, propriety and compliance
23
Statement of Directors' responsibilities
24
Independent auditor's report on the accounts
25 - 28
Independent reporting accountant's report on regularity
29 - 30
Statement of financial activities including income and expenditure account
31 - 32
Balance sheet
33
Balance sheet - charity only
34
Statement of cash flows
35
Notes to the accounts including accounting policies
36 - 63
AVANTI SCHOOLS TRUST
REFERENCE AND ADMINISTRATIVE DETAILS
- 1 -
Members
M Younger
D Hothi
N Shah
K Mehta
V Tanna
Directors
Mr N Gor (Accounting Officer and Chief Executive Officer)
Mr M Younger (Chair)
Dr K Pau (Chair of Learning and Teaching Committee) (Resigned 31 December 2022)
Dr M Warrington (Chair of People, Compliance and Governance Committee)
Mrs B Nanthabalan
Mr A Read (Chair of Remuneration Committee)
Mrs S Ventress (Resigned 12 September 2022)
Mr S Sahni (Resigned 9 October 2023)
Mr S Bassi (Chair of Audit and Risk Committee)
Mrs D Dhokia
Mr P Ganatra (Chair of Finance Committee)
Ms A Gupta
Ms M Loughrey
Miss P Popat
Senior management team
- Chief Executive
N Gor
- Chief Operating Officer
K Patel
- Education Director
M Ion
Company Secretary
S Kumar
Company registration number
07506598 (England and Wales)
Principal and registered office
Wemborough Road
Stanmore
Middlesex
HA7 2EQ
United Kingdom
AVANTI SCHOOLS TRUST
REFERENCE AND ADMINISTRATIVE DETAILS
- 2 -
Academies operated
Location
Principal
Avanti House Secondary School
Harrow
S Arnell
Krishna Avanti Primary School (Croydon)
Croydon
B Pandya
Krishna Avanti Primary School (Leicester)
Leicester
D Koorichh
Avanti Court Primary School
Redbridge
J Abbott
Krishna Avanti Primary School (Harrow)
Harrow
S Bellare
Avanti House Primary School
Harrow
L Joshi
Avanti Fields School
Leicester
V Bardsley
Avanti Gardens School
Bristol
H Penny
Avanti Hall School - left Trust 31 May 2023
Exeter
P Arnold
Avanti Park School
Frome
A Atkins
Avanti Meadows School
Bishop Stortford
S Allan
Avanti Grange Secondary School
Bishop Stortford
R Jones
Avanti Brook Primary School - opened 1 September 2023
Bishop Stortford
S Allan
Independent auditor
Azets Audit Services
Ruthlyn House
90 Lincoln Road
Peterborough
Cambridgeshire
PE1 2SP
United Kingdom
Bankers
Lloyds Bank PLC
25 Gresham Street
London
EC2V 7HN
United Kingdom
Solicitors
HY Education Service Ltd
3 Reed House
Hunters Lane
Rochdale
Lancashire
OL16 1YL
United Kingdom
AVANTI SCHOOLS TRUST
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2023
- 3 -

The Directors present their Annual Report together with the Financial Statements and Independent Auditor’s Report of the charitable company (referred to thereon as “Avanti Schools Trust”) for the period 1 September 2022 to 31 August 2023. The Annual Report serves the purpose of both a Trustees’ Report and a Directors’ Report under company law.

 

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charitable company’s Memorandum and Articles of Association, the Companies Act 2006, the Charity Commission's document ‘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) and the Academies Accounts Direction 2022 to 2023 issued by the ESFA.

Introduction

The Academy Trust operates 12 schools (free schools and academies) in the London Region, South-West and Midlands. Its academies have a combined pupil capacity of 6,990 and had a roll of 5,682 in October 2023.

Structure, governance and management
Constitution

Avanti Schools Trust is a Multi-Academy Trust, 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 Avanti Schools Trust are also the directors of the charitable company for the purposes of company law.

 

Avanti Schools Trust was incorporated on 26 January 2011 and obtained Academy Status from 1 August 2011. The Trust obtained Multi-Academy Status from 9 August 2012.

 

The charitable company operates as:

 

The Directors are the trustees of Avanti Schools Trust and are also the directors of the charitable company for the purposes of company law. Details of the Directors who served during the year, and to the date these accounts are approved, are included in the Reference and Administrative Details on page 1.

Members' liability

Each member of the charitable company undertakes to contribute to the assets of the charitable company in the event of it being wound up while they are a member, or within one year after they cease to be a member, such amount as may be required, not exceeding £10, for the debts and liabilities contracted before they ceased to be a member.

Directors' indemnities

The company subscribes to the Risk Protection Arrangements (RPA) provided by the DfE. The RPA provides Governors Liability which includes Directors within its definitions.

AVANTI SCHOOLS TRUST
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 4 -

Members

The first members of the Academy Trust were the signatories to the Memorandum. Subsequent Members of the Company shall comprise any person appointed under Article 15A.

Trustees

The number of Trustees shall be not less than three but (unless otherwise determined by ordinary resolution) shall not be subject to any maximum.

Subject to Articles 46 – 49 and 53, the academy trust shall have the following Trustees

  1. Up to 15 Trustees appointed under Article 50 (a);

  2. Where there are no Local Governing Bodies or Advisory Bodies appointed pursuant to Article 100 (a), a minimum of two Parent Trustees appointed under Articles 53 – 56*

  3. The Chief Executive if appointed under Article 57;

  4. Staff Trustees and co-opted Trustees if appointed under Article 58.

*The Board of Trustees appoints local advisory bodies (“School Stakeholder Committees – see below).

The term of office for any Trustee shall be four years or (with the exception of any Parent Trustee) may be shorter than four years provided that Members (or in the case of a Co-opted Trustee, the Trustees) determine this at the time of appointment of such Trustee.

Trustee induction, training, policies and procedures

All Trustees are required to undergo appropriate Safeguarding Training which the Board of Trustees has determined is mandatory. Subject to this, induction and training for Trustees is tailored to their individual professional skills and experience.

Through the Governor Hub system, all Trustees are provided with full access to all Trust policies, procedures, agenda, reports and minutes, accounts, budgets, plans and other documents that they need to undertake their role as Trustees.

Governance Structure

The Board of Trustees is the legal governing body of the Avanti Schools Trust and all schools within the Trust. The Board holds the Executive to account and is responsible and accountable for the effective Governance of the Trust - including all legal and statutory obligations. The Board is also ultimately responsible and accountable for the quality of education provision in Trust schools.

To support Trustees with their oversight of performance and in holding to account, the Board has appointed five Committees

 

Additionally, the Board has appointed a School Stakeholder Committee (SSC) for each Trust school. SSCs are Advisory Bodies in line with Article 100(a) and are subject to terms of reference set by the Board of Trustees. These require the SSCs to work with the school and to provide assurance to the Board that the day to day operation and performance of the school is in accordance with Trust Vision, Values and educational objectives. SSCs achieve this through the local perspective that they provide from parents, the wider community and staff.

Through the Trust Scheme of Delegation, Trustees delegate operational responsibilities for management of the Trust and its schools to the Chief Executive and the Senior Executive Team, through whom School Principals and their Senior Leadership Teams have delegated authority for the day to day operation and performance of their school.

AVANTI SCHOOLS TRUST
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 5 -
Arrangements for setting pay and remuneration of key management personnel

The setting of pay and benefits must represent good value for money and take into account market factors and the performance of the trust (both financial and non-financial). In setting the pay and remuneration of the academy’s trust key management personnel and any benchmarks, parameters or criteria used in setting their pay, the Avanti Schools Support Staff Pay Policy is used.

 

Executive pay is determined by the Remuneration Committee, which is a sub-committee of the Board. The membership of the committee does not include any employees and there are no conflicts of interest. Trust Executive pay decisions are recommended to the Committee by the CEO. For decisions regarding the CEO’s pay the Trust Chair makes recommendations to the Committee.

 

Annual targets are set for each of the directors and these are reviewed in an appraisal cycle along with the employees self-review and any other evidence deemed necessary. This appraisal is carried out by the CEO or Trust Chair (for AST CEO). Based on this appraisal a recommendation for progression will be made in line with the pay policy.

 

In addition to the Remuneration Committee, implementation of this policy is monitored by the HR team and board in particular concerning any equality or diversity issues. Each year the HR team will recommend to the Committee any company-wide pay scale increases (% based). This is based on government recommendations, inflation and discussions with other academies.

 

The above process was discussed with the DfE last year and they were satisfied with the method undertaken.

Trade union facility time
Relevant union officials
Number of employees who were relevant union officials during the relevant period
-
Full-time equivalent employee number
-
Percentage of time spent on facility time
Percentage of time
Number of employees
0%
-
1%-50%
-
51%-99%
-
100%
-
Percentage of pay bill spent on facility time
Total cost of facility time
-
Total pay bill
-
Percentage of the total pay bill spent on facilty time
-
Paid trade union activities
Time spent on paid trade union activities as a percentage of total paid facility time hours
-
AVANTI SCHOOLS TRUST
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 6 -
Engagement with employees

The engagement of our employees at AST is fundamental in all the work we do. All staff members are inducted at a school level and attend a trust-wide induction. During this induction, the company ethos and goals are discussed. We spend time looking at The Avanti Way and what this means for employees and how we share this common vision for all staff and schools. We use videos and testimonials of current members of staff.

 

We hold annual wellness retreats, and this is an opportunity for us to develop the common awareness on the part of all employees of the factors affecting the performance of the company. We also hold various whole staff conferences for staff to network, connect and align further with the ethos.

 

Individual targets, performance management and appraisals are aligned with trust performance targets. The trust is aware that each of our schools has unique characteristics and we work closely with our Principals to ensure that their needs, as well as the trusts, are met.

 

We operate an open-door policy within our senior leadership team and welcome feedback from all levels of employees. Several CPD programs have been set up to develop employees in the company including a Women in Leadership program. All trust policies are easily accessible on the HR intranet and we aim to work on updating the communications we publish here.

 

Employee engagement surveys are completed at the school level to gain an understanding of how employees feel working in the Trust.

 

Our safer recruitment policy ensures that a person with a disability is treated fairly and in line with the Equality Act 2010. If a person becomes disabled while working for the Trust a referral is made to an Occupational Health provider and we work closely with them, the employee and the line manager to ensure all the reasonable adjustments are made. Again, regarding the training, development and promotion of any disabled person, the Trust follows the Equality Act 2010 and ensures no discrimination takes place. All roles are posted on the careers section of our website and we encourage people to apply for roles they are interested in. Our appraisals can identify any knowledge gaps and we are working towards providing CPD that prepares people for the natural career progression within the company.

Engagement with suppliers, customers and others in a business relationship with the academy trust

Our trusts long term sustainability and success relies on the trust and confidence of its stakeholders. We put our pupils best interests first, invest in our employees, serve the communities where our schools are based and strive to support genuine improvement in the overall education system.

 

Various parts of this director’s report provide examples of how we discharge our duties to our various stakeholders including pupils, employees and the wider community. In addition, management and trustees seek to understand and incorporate stakeholder views into decision making through various methods including stakeholder committees and surveys from parents, staff and pupils.

 

The trustees and management operate the business in a responsible manner with the aim of ensuring that Avanti maintains a reputation for high standards of business conduct and good governance in particular in relation to requirements of the Academy Trust Handbook.

Related parties and other connected charities and organisations

The Academy has relationships with the following organisations:

 

 

AVANTI SCHOOLS TRUST
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 7 -
Objectives and activities
Objects and aims

The principal activity 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.

 

All schools in the Avanti Schools Trust prepare pupils for their respective life-journeys by promoting educational excellence, character formation and spiritual insight.

Objectives, strategies and activities

Educational Excellence

Our vision for educational excellence is one where deeply inspired teachers nurture joyful students and nourish their innate passion for learning. Learning is a quest to discover each student’s unique gifts and potential and lay the foundation for their lifelong journey of learning. This is inseparable from high academic standards, where a challenging holistic curriculum cultivates independently thoughtful and reflective students by working towards a sense of mastery, emphasising depth, and not just breadth.

 

Character Formation

Our vision for character formation is one where virtues are taught by example and a supportive community of learners fosters a powerful sense of individual and collective purpose. Learning develops for these conscious changemakers as a quest for making the world a better place, starting with oneself. The capacity to internalise and put into practice what we have learned is the true test of learning. Building this capacity demands an experiential, virtues-led curriculum that embraces collaboration, custodianship and global perspectives.

 

Spiritual Insight

Our vision for spiritual insight is one where our interconnectedness with all living beings and with the universe, urges acts born out of humility and love, and the Self is perceived beyond its layers of coverings. Learning blossoms for these seekers as a quest for self-discovery and opens the door to their unlimited potential; an antidote to the emptiness of a materialistic or mechanistic worldview. The curriculum unveils the possibilities of sacredness and transcendence at every moment and so engenders a deeply positive attitude to life, enduring happiness and heartfelt relationships.

Key objectives

Key objective for the year was the transfer of Avanti Hall School, welcoming Avanti Brook, and Avanti Grange move to a permanent site.

Public benefit

The Directors confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on Public Benefit when reviewing the Academy Trust’s aim and objectives and in planning future activities. The Directors consider that the Academy Trust’s aims are demonstrably to the public benefit.

AVANTI SCHOOLS TRUST
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 8 -
Strategic report
Achievements and performance

Avanti House Secondary School

The school opened as an all-through school in September 2012 as a free school. The two schools were formally demerged as of September 2017. During the academic year 2022-23 a short inspection of the secondary school was carried out by OFSTED under section 8. Overall, the school was given a “Good” rating. However, the evidence gathered suggests that the inspection grade might be outstanding if a graded (section 5) inspection were carried out.

 

Comments from the OFSTED report:

 

“In addition to achieving well academically, pupils are very well supported to develop more widely. The culture and ethos of the school ensure that pupils are taught to be responsible and caring citizens.”

 

“Teachers have very strong subject knowledge. This gives pupils, and the students in the sixth form, confidence in their teachers. Teachers present subject content clearly and are skilled at making sure pupils understand this content before moving on. This means that any misconceptions or gaps in knowledge are quickly identified and addressed.”

 

“Pupils’ behaviour is exemplary. Lessons run smoothly and without disruption. Social times are calm, safe and orderly. Leaders’ very high expectations of pupils’ behaviour are met through a culture of respect and kindness. Pupils are polite and engaging. They know that unkind or discriminatory language is not tolerated. Very high levels of attendance also exemplify pupils’ positive attitude to learning.”

 

“Pupils learn important life skills through a carefully considered programme of personal, social and health education (PSHE). They learn about staying safe and about relationships in an age-appropriate way. The school has embedded a programme of careers education from Year 7 to Year 13. This includes opportunities for work experience in Year 10 and in the sixth form. Some students in the sixth form benefit from mentoring by professionals from the world of finance.”

 

“Trustees and officers in the trust know the school well. They provide appropriate support and challenge to the school. This includes oversight of the school’s safeguarding practices. Teachers benefit from high-quality training and professional development. They feel valued and supported by leaders. Leaders, staff and pupils are proud of their school.”

 

Krishna Avanti Primary School (Harrow)

The school joined the AST family in September 2012 as a convertor Academy. In the academic year 2022-23 a short inspection of the school was carried out under section 8 of the Education Act 2005 (Ungraded). While the school maintains its "Good" rating overall, there is sufficient evidence of improved performance to indicate that it could potentially be rated as outstanding if subjected to a graded (Section 5) inspection.

 

Comments from the OFSTED report:

 

“Krishna Avanti Primary School continues to be a good school. There is enough evidence of improved performance to suggest that the school could be judged outstanding if we were to carry out a graded (section 5) inspection now. The school's next inspection will be a graded inspection.”

 

“Pupils are rightly proud of their school and enjoy sharing all that it is ‘amazing’ about it. Parents typically describe it as a nurturing and caring place with a strong sense of community. Pupils enjoy learning the ambitious and aspirational Curriculum, including those with special educational needs and/or disabilities (SEND).”

 

“Pupils with SEND are identified early and well supported. Tasks and activities are adapted carefully so that pupils with SEND can learn alongside their peers. More bespoke support is provided for those pupils who need it. Teachers ensure that these pupils continue to join in with all aspects of school life.”

 

“Staff are overwhelmingly positive about the school. They feel part of a ‘family’ and well supported by leaders and each other. Leaders are considerate of staff’s workload and have taken positive steps to help with this.”

AVANTI SCHOOLS TRUST
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 9 -

Krishna Avanti Primary School (Leicester)

The school opened in September 2011 in the first wave of free schools. In the academic year 2022-23 an inspection of the school was carried out under section 8 of the Education Act 2005. Overall the school continues to have “Good” rating.

 

Comments from the OFSTED report:

 

“Pupils have positive attitudes to their work. They are aspirational. Pupils want to excel.”

 

“Staff have created a calm and purposeful learning environment. They know how to maximise pupils’ learning. Pupils’ behaviour is exemplary. They are exceptionally well mannered. Pupils know what is expected of them. They have a clear understanding of difference and equality. One pupil said: ‘We care for, and respect, everyone.’”

 

“Parents and carers are overwhelmingly positive about the school. One parent, typical of many, said: ‘Me and my child like the values the school embeds, along with the teaching, learning and assessment. It is a fun, and happy environment in which I see my son flourish.’ Parents feel well informed about their children’s learning.”

 

“Trustees and representatives of the Avanti Schools’ Trust know the school well. Trustees fulfil their statutory responsibilities. Leaders work well with staff. They consider staff’s well-being and workload. They provide regular training. Staff are overwhelmingly positive about the leaders and the support from the trust.”

 

“There is a strong culture of safeguarding. Leaders provide regular training for staff. Staff know how to spot pupils who may be at risk. They pass on concerns promptly. Leaders support pupils’ welfare. They work well with external agencies to provide additional help when needed. Record-keeping is comprehensive. Trust representatives regularly check the school’s safeguarding procedures.”

 

Avanti House Primary School

The school opened in September 2017 (de-merger from secondary). It received its first OFSTED in 2019-20. The overall rating is Good with outstanding behaviour and attitudes, personal development and early years provision.

 

Comments from the OFSTED report:

 

"Pupils describe Avanti as ‘a very special place’. As the school has grown over the last couple of years, it has managed to retain its family ethos and strong community spirit. Pupils of all ages get on well together. Staff are united in their aim to enable every pupil to achieve highly and to leave the school as a well-rounded individual, with strong foundations for future learning."

 

"Leaders and all staff place a strong emphasis on promoting pupils’ character and their personal development. These are key features of the ‘Avanti Way’ and the school’s aims. Pupils develop a strong sense of self-belief and an understanding of respect and tolerance. Older pupils told us all about different types of family, for example, and we saw pupils discussing suffering in the world and what they could do to put an end to it."

 

Avanti Court Primary School

The school opened as a primary school in September 2012 as a voluntary-aided school. The school converted to an Academy on 1 December 2015. During the year 2021-22 there was a full OFSTED inspection.

 

Comments from the OFSTED report:

 

" Pupils are incredibly respectful of one another and of all staff. They understand the school values and model them proudly. The school has a calm atmosphere. Pupils say that the daily meditation sessions and weekly yoga help them keep calm.”

 

“Leaders have carefully designed the curriculum so that it is ambitious and well sequenced. Most subjects are led by experienced staff with secure subject knowledge. In these subjects, teaching is strong, and pupils make good progress. Pupils retain important knowledge and build on it over time.”

 

“Leaders have ensured that a strong safeguarding culture exists across the school. All staff and trustees receive regular training on safeguarding matters. They are all clear about their responsibilities.”

AVANTI SCHOOLS TRUST
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 10 -

“Staff are extremely proud to work at the school. They value the care and help they receive from senior leaders. They recognise that steps are taken to make their workload manageable.”

 

Krishna Avanti Primary School (Croydon)

The school opened in September 2016. It received its first OFSTED in 2018-19. The overall rating is Good.

 

Comments from the OFSTED report:

 

"Pupils understand the school’s values and bring them to life in the positive and gentle way they behave towards one another."

 

"Attendance is well above the national average for similar schools and has improved even more in the current year. Leaders’ excellent relationships with parents ensure that, when pupils do miss school, their attendance rapidly improves."

 

"The systematic and consistently effective teaching of reading ensures that pupils make excellent progress over time. The proportion of Year 1 pupils reaching the expected standard in phonics exceeds the national average."

 

"Pupils who arrive at the school speaking little English make particularly strong progress. As a result, they rapidly catch up with others in their class."

 

"The school’s work to promote pupils’ personal development and welfare is good. The curriculum is implemented effectively and ensures that pupils understand the school’s values. For example, pupils realise they can demonstrate integrity by continuing to cooperate even when they think adults are not watching them."

 

Avanti Fields School

The school opened in temporary accommodation in September 2018 as a 4-16 all-through school. In September 2021 it moved to its new, permanent site and has a full complementary of year groups at secondary and opened up the primary element in 2022-23 with EYFS and a nursery provision. The school has very quickly established a strong local reputation in the area and has been oversubscribed. In the academic year 2022-23 an inspection of the school was carried out under section 5 of the Education Act 2005. Overall the school was given a “Good” rating while Early Years Provision was rated “Outstanding”.

 

Comments from the OFSTED report:

 

“There are many opportunities for pupils to contribute to school life. As one pupil put it, ‘Teachers support us to become upstanders, not bystanders.’ Pupils know what bullying is; they are confident in calling it out and they know teachers will deal with it.”

 

“Children in the early years thrive. They are extremely well supported with love and care. They benefit from an exceptional curriculum that prepares them for the next stage. Leaders have ensured that there is no ceiling to learning for children in Nursery and Reception years.”

 

“Leaders ensure that teachers support pupils with special educational needs and/or disabilities (SEND). Teachers are aware of the needs of all pupils. Teachers use their training well to adapt teaching and the curriculum so pupils with SEND can achieve well. Pupils with SEND comment positively on the support they receive from their teachers.”

 

Avanti Meadows Primary School

The school opened in September 2021 as a Local Authority presumption school to accommodate the housing development in Bishops Stortford North . Due to the delayed progress of the housing development, pupil’s growth remains a challenge. The school has not yet received an OFSTED visit.

 

Avanti Grange Secondary School

In September 2022, the school commenced operations at the Avanti Meadows School site, serving as a Local Authority presumption school to meet the needs of the housing development in Bishops Stortford North. It quickly gained popularity within the community. The school transitioned to its permanent site in September 2023. As of now, the school has not undergone an OFSTED visit.

AVANTI SCHOOLS TRUST
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 11 -

South West schools

These three separate inadequate former Steiner academies were transferred to Avanti Schools Trust in November 2019 (Avanti Gardens School (Bristol), Avanti Park School (Frome) and Avanti Hall School (Exeter)). Since the transfer we have undertaken a curriculum review and a major staff restructuring programme. We collaborated closely with ESFA colleagues to secure funding for Avanti Park School and Avanti Gardens School. Avanti Hall was transferred to Reach South West. As of now, the schools have not been assessed by OFSTED.

 

Brokerage of Avanti Hall

In June 2023, Avanti Hall underwent a successful rebrokering process to Reach South West. As part of the agreement, Avanti took on the responsibility of covering the deficit for the remainder of the 2022-2023 academic year.

 

Key performance indicators

The following KPIs would apply to all Avanti Schools Trust schools.

 

The quality of education

This KPI seeks to evaluate school improvement strategies which include:

 

Behaviour and attitudes

This KPI seeks to evaluate:

 

Personal development

This KPI seeks to evaluate:

 

The quality of the Leadership and management in AST schools

This KPI seeks to evaluate:

AVANTI SCHOOLS TRUST
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 12 -

Subsidiary company performance

From 1 September 2013 the Academy Trust began operating a wholly-owned subsidiary called Govinda’s Limited. The subsidiary was created to manage the kitchen operation at Avanti Schools and to ensure that the catering operations are run in an efficient and cost-effective way. The subsidiary operates school kitchens at the majority of Avanti Schools. The company has managed to turn a profit in the current year following a tough year of ongoing rising prices of commodities.

 

From September 2017, the Academy Trust began operating a wholly-owned subsidiary called Avanti Services Limited. The subsidiary was created to take over centralised and back-office functions for the Academy Trust and its schools. Avanti Services Limited continues to operate at a profit/break-even with any profits gifted to the parent company.

Going concern

After making appropriate enquiries, the Board of Directors has a reasonable expectation that the Academy Trust has adequate resources to continue in operational existence for the foreseeable future. For this reason it continues to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Statement of Accounting Policies.

Protecting the success of the academy trust

The trust has produced a document called the Avanti Way. This Avanti Way seeks to drive the long term objectives and decisions of trust. The below are the core principles from the Avanti Way and we aspire for this to be reflected in all aspects of engagement with our various stakeholders including pupils, and forms the basis for how we judge and promote our own success.

 

Our Core Principles

AVANTI SCHOOLS TRUST
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 13 -
Financial review

Financial report for the period

Most of the Academy Trust’s income is obtained from the Education and Skills Funding Agency (ESFA) in the form of recurrent grants, some of which is restricted to particular purposes. The grants received from the ESFA during the year ended 31 August 2023 and the associated expenditure are shown as restricted funds in the Statement of Financial Activities.

 

The Academy Trust also receives grants for fixed assets from the ESFA. In accordance with the Charities Statement of Recommended Practice, ‘Accounting and Reporting by Charities’ (Charities SORP (FRS 102)), such grants are shown in the Statement of Financial Activities as restricted income in the fixed asset fund. The restricted fixed asset fund balance is reduced by annual depreciation charges over the expected useful life of the assets concerned.

 

During the year ended 31 August 2023, total expenditure of £48,297k (2022: £35,703k) was met by recurrent grant funding from the ESFA together with other incoming resources. The surplus/(deficit) of income over expenditure for the year (excluding restricted fixed asset funds, transfers to restricted fixed asset funds and actuarial losses on defined benefit pension schemes) was £3,069k (2022: £(1,580k)).

 

At 31 August 2023, the net book value of fixed assets was £111,552k (2022: £120,030k). Movements in tangible fixed assets are shown in note 14 to the financial statements. The assets were used exclusively for providing education and the associated support services to the pupils of the Academy Trust.

 

The Leicestershire County Council Pension Fund, in which the Academy Trust participates, showed a surplus of £nil at 31 August 2023 (2022: surplus of £36k). The London Borough of Harrow Scheme, in which the Academy Trust participates, showed a surplus of £nil at 31 August 2023 (2022: surplus of £10k). The London Borough of Redbridge Pension Fund showed a surplus of £nil at 31 August 2023 (2022: deficit of £119k). The London Borough of Croydon Pension showed a surplus of £nil at 31 August 2023 (2022: deficit of £5k). The Somerset County Council Pension Fund, in which the Academy Trust participates, showed a deficit of £10k at 31 August 2023 (2022: £273k). The Avon Pension Fund, in which the Academy Trust participates, showed a deficit of £2k at 31 August 2023 (2022: £65k). The Devon County Council Pension Fund, in which the Academy Trust participates, showed a deficit of £80k at 31 May 2023 (2022: £323k). The Hertfordshire County Council Pension Fund, in which the Academy Trust participates, showed a deficit of £12k at 31 August 2023 (2022: £4k).

Reserves policy

The Directors review the reserve levels of the Academy Trust annually. This review encompasses the nature of income and expenditure streams, the need to match income with commitments and the nature of reserves. The Directors have determined that the appropriate level of free reserves should be equivalent to 2 (2022: 2) weeks’ expenditure, approximately £1,853k (2022: £1,373k (2 weeks)).

 

The reason for this is to provide sufficient working capital to cover delays between spending and receipt of grants and to provide a cushion to deal with unexpected emergencies such as urgent maintenance. The Academy Trust’s current level of free reserves of £8,046k (2022: £5,250k) (total funds excluding pension reserve deficit less the amount held in restricted fixed assets) is sufficient. The Academy Trust’s free reserves include restricted general funds of £4,028k (2022: £2,512k).

Investment policy

Under the Memorandum and Articles of Association, the Academy Trust has the power to invest funds not immediately required for its own purposes, in any way the Directors see fit. The organisation has a positive cash balance to cover eventualities and unforeseen expenses. The banking facilities are reviewed on a regular basis.

 

Financial Review

The Academy Trust held fund balances at 31 August 2023 of £121,430k (2022: £126,111k) comprising £117,412k (2022: £123,373k) of restricted funds and £4,018k (2022: £2,738k) of unrestricted general funds. Of the restricted funds, £113,408k (2022: £121,603k) is represented by tangible fixed assets.

 

The Pension Reserve which is considered part of restricted funds was £24k in deficit (2022: £742k in deficit).

 

AVANTI SCHOOLS TRUST
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 14 -
Principal risks and uncertainties

Financial and Risk Management Objectives and Policies

The Directors have assessed the major risks to which the Trust is exposed, in particular those relating to the specific teaching, provision of facilities and other operational areas of the individual Academies and their finances. The Directors have implemented a number of systems to assess risks that the school faces, especially in the non-financial operational areas (including but not exclusive to teaching, safeguarding, health and safety, data protection, website compliance and staff wellbeing) and in relation to the control of finance. Directors have introduced systems, including operational procedures and internal financial controls in order to minimise risk. The Academy Trust has an effective system of internal financial controls.

 

The risks to which Avanti Schools Trust is exposed relate primarily to:

The principal risks and uncertainties that Avanti Schools Trust faces are mitigated by the risk management process that the Academy Trust has in place.

Financial and risk management objectives and policies
Fundraising

The Academy Trust carries out a limited amount of fundraising, mindful of the communities within which it operates. In circumstances when fundraising is undertaken there is no obligation for any child/parent to donate. Recognised standards are applied to ensure that fundraising is open, honest and respectful, protecting the public from undue pressure to donate.

Streamlined energy and carbon reporting
2023
2022
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
6,143,288
5,778,121
2023
2022
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
844.62
694.36
- Fuel consumed for owned transport
0.43
2.56
845.05
696.92
Scope 2 - indirect emissions
- Electricity purchased
395.98
511.55
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the academy trust
3.14
4.12
Total gross emissions
1,244.17
1,212.59
Intensity ratio
Tonnes CO2e per pupil
0.23
0.23
Quantification and reporting methodology

We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2021 UK Government’s Conversion Factors for Company Reporting.

AVANTI SCHOOLS TRUST
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 15 -
Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2 equivalent per pupil, the recommended ratio for the sector.

Measures taken to improve energy efficiency

We have installed smart meters across all sites and increased video conferencing technology for staff meetings, to reduce the need for travel between sites. Solar panels have been installed at one of our schools.

Plans for future periods

The Avanti Schools Trust will be looking to ensure that the current schools within the family continue to increase their standards and begin to embed the Avanti Way. We will be welcoming our new school, Avanti Brook in Bishop Stortford from September 2023.

Auditor

In so far as the Directors are aware:

- there is no relevant audit information of which the charitable company's auditor is unaware; and

- the Directors 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.

To ensure that Avanti Schools Trust is obtaining best value, the Directors have decided to carry out a tender process for the appointment of an Auditor for the financial year ending 31 August 2023 and succeeding years.

The Directors' report, incorporating a strategic report, was approved by order of the Board of Directors, as the company directors, on 13 December 2023 and signed on its behalf by:

Mr N Gor
Mr M Younger
Accounting Officer and Chief Executive Officer
Chair
AVANTI SCHOOLS TRUST
GOVERNANCE STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2023
- 16 -
Scope of responsibility

As Directors, we acknowledge we have overall responsibility for ensuring that Avanti Schools Trust has an effective system of control, financial and otherwise. However, such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives and can provide only reasonable and not absolute assurance against material misstatement or loss.

The Board of Directors has delegated the day-to-day responsibility to the Chief Executive, as Accounting Officer, for ensuring that 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 Avanti Schools Trust and the Secretary of State for Education. The Chief Executive Officer is also responsible for reporting to the Board of Directors any material weaknesses or breakdowns in internal control. As Directors, we have reviewed and taken account of the guidance in the DfE Academy Trust Handbook and competency framework for governance. The information on governance included here supplements that described in the Directors' Report and in the Statement of Directors' Responsibilities.

Governance

The Board of Directors has met formally 8 times during the year and also held a Directors “Awayday” at which a strategic overview of the future direction of the Trust was taken. Including that meeting, attendance during the year at meetings of the Board of Directors was as follows:

 

Directors

Meetings attended

Out of possible

N Gor (Accounting Officer and Chief Executive Officer

9

9

M Younger (Chair)

9

9

K Pau (Chair of Learning and Teaching Committee)

Resigned December 2022

1

1

M Warrington (Chair of People, Compliance and Governance Committee)

9

9

B Nanthabalan

2

2

A Read (Chair of Remuneration Committee)

8

9

S Sahni

2

9

S Bassi (Chair of Audit and Risk Committee)

8

9

D Dhokia

2

9

P Ganatra

7

9

A Gupta (Chair of Finance Committee)

9

9

M Loughrey

9

9

P Poppat

8

9

 

Other than the resignation of Ms Pau there have been no changes to the membership of the Board of Directors during the current academic year.

 

The Board of Directors normally meets five times each year (plus the annual “Awayday”) and is supported by six Board Committees (excluding the School Stakeholder Committees). These report and make recommendations directly to the Trust Board (typically meeting 3 or 4 times each per year) according to an agreed Calendar of meetings set by the Board. Because of the important role that each Committee plays, Directors do not feel that they need to meet more frequently in order to discharge their obligations unless, (as was the case this year), special meetings of the Board are required for particular issues that may arise from time to time. Subject to this, Directors agree that the governance structure provides an effective governance framework of robust challenge and interrogation. This is achieved through:

 

AVANTI SCHOOLS TRUST
GOVERNANCE STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 17 -
Governance reviews

In our 2021 / 22 Statement we reported that the Trust Board had agreed that, whilst an independent external governance review should be arranged, it would be appropriate to delay the process to allow the new Committee system developed during 2020/ 21 fully to embed (the Audit and Risk and the People, Compliance and Governance Committees were introduced during that year). Directors had also agreed that the measures to re-invigorate School Stakeholder Committees (SSCs), approved in July 2022 for implementation from September of that year, and the anticipated increase during 2022 / 23 in the number of SSCs (from seven to twelve - reflecting the growth in the number of schools within the Trust), must be given the opportunity to establish themselves. A further factor in delaying the review was the importance of completing the fundamental review of the Trust Scheme of Delegation to ensure that this reflected good practice advice.

 

Directors remain committed to commissioning an independent governance Review for which a Brief has been agreed by the Trust Board in consultation with DfE. The intention is to commission the exercise during Autumn 2023. In that regard, key governance developments during the 2022 / 23 academic year include:

 

 

Directors regularly discuss strategic matters and organisational development as a group and with the Executive Management Team. Examples of key developments undertaken by Directors through Board Committees throughout the year, include:

 

 

 

AVANTI SCHOOLS TRUST
GOVERNANCE STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 18 -

The six Committees that support the Trust Board are:

 

Remuneration Committee – whose purpose is to recommend the wider pay policy of the Trust to the Trust Board and to establish in accordance with ESFA directives the leadership pay policy. The Committee met once during the year when there were present:

 

Table 2 : Record of Attendance of Directors at Remuneration Committee 2022 / 23

 

Directors

 

Meetings attended

Out of possible

Andrew Read (Chair of the Committee)

1

1

Anjana Gupta

1

1

Bavaani Nanthabalan

0

1

Molly Warrington

1

1

Mike Younger

1

1

 

Finance and Resources Committee* - supports the Trust Board by reviewing and reporting to Directors on the financial performance of the Trust. There were four meetings during the year, attendance being:

 

*Renamed Finance and Estates Committee from June 2023 – remit now includes Estates Strategy and oversight including Health and Safety.

 

Table 3 : Record of Attendance of Directors at Finance (and Estates) Committee 2022 / 23

 

Directors

 

Meetings attended

Out of possible

A Gupta (Chair of the Committee)

4

4

S Sahni

0

4

P Ganatra

4

4

A Mankodi*

(non-Trustee appointed December 2022)

3

3

 

The work of the Committee this year has included:

 

Review of audited accounts for recommendation to the Trust Board

 

Audit and Risk Committee - met on four occasions during the year when there were present:

 

Table 4 : Record of Attendance of Directors at Audit and Risk Committee 2022 / 23

 

Directors

 

Meetings attended

Out of possible

Sukwinder Bassi (Chair of Committee)

4

4

Andrew Read

4

4

Mike Younger

4

4

AVANTI SCHOOLS TRUST
GOVERNANCE STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 19 -

In addition to keeping the Trust Risk Register under regular review, this Committee maintains oversight of Trust financial, governance and risk management, internal control systems, compliance and internal audit which extends to health and safety, child protection and safeguarding. In this way, the Committee provides assurance to the Trust Board (or if appropriate, is in a position to alert the Board of any concerns).

 

The work of the Committee this year has included:

 

Learning, Teaching and Standards Committee - reviews and reports to the Trust Board on the educational performance of the Trust. The Committee held three meetings during the year when attendance was as follows:

 

Table 5 : Record of Attendance of Directors at Learning, Teaching and Standards Committee 2022 / 23

 

Directors

 

Meetings attended

Out of possible

Michelle Loughrey (Chair of the Committee from January 2023)

3

3

Krutika Pau (Chair of Committee to December 2022))

resigned December 2022

1

1

Sukwinder Bassi

3

3

Abigail Gray

(non-Trustee appointed April 2023)

1

1

Bavaani Nanthabalan

2

3

Mike Younger

3

3

 

The work of this Committee includes:

AVANTI SCHOOLS TRUST
GOVERNANCE STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 20 -

The People, Compliance and Governance Committee - has a wide remit (although this will change from September 2023 when responsibility for compliance and GDPR matters passes wholly to the Audit and Risk Committee.

 

During the current Academic Year the work of this Committee has included oversight of employment matters, data protection, compliance and freedom of information, GDPR policy, review of the Trust Scheme of Delegation and other governance procedures and scrutiny and oversight of many Trust policies.

 

Attendance at the three meetings during the year was as follows:

 

Table 6 : Record of Attendance of Directors at People, Compliance and Governance Committee 2022 / 23

 

Directors

 

Meetings attended

Out of possible

Molly Warrington (Chair of the Committee )

3

3

Dipa Dhokia

2

3

Praful Ganatra

3

3

Kishan Parshotam

(non-Trustee appointed June 2023)

1

1

Preeya Poppat

1

1

Mike Younger

3

3

 

Avanti Hall Governance Committee

 

As noted above, this Committee was established as a temporary arrangement to oversee transfer of Avanti Hall School to Reach South School. Membership of the Committee, which met on five occasions during the year, included the Parent Members of the former SSC.

 

Attendance at the meetings was as follows

 

Table 7 : Record of Attendance at Avanti Hall Governance Committee 2022 / 23

 

Directors

Meetings attended

Out of possible

Molly Warrington (Chair of the Committee) (Trustee)

5

5

Nitesh Gor

2

5

Mike Younger

5

5

Parent Members

 

1

Katherine Leat

5

5

Neomi Lendvai-Bainton

4

5

Principal (Avanti Hall ) (non-voting)

 

 

Phil Arnold

5

5

Co-opted Member (Reach South Trust)

 

 

Representative varied between meetings

4

4

 

The final meeting of this Committee was held on 10 May.

AVANTI SCHOOLS TRUST
GOVERNANCE STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 21 -

Admission Committee – the role of this Committee is set by Regulation (the Admissions Code) and is focussed on annual review of the Admissions Policy of each Trust School. The Code requires that Admissions Policies are reviewed annually and that Policies are approved no later than 28 February each year. Where changes are proposed, public consultation must take place. (Regulation also requires that, in any case, consultation on Admissions Policies must take place every seven years). The role of the Committee is to consider consultation responses and to determine Admissions policies in light of these. The Committee also takes oversight of (non-statutory) Nursery Admissions Policies and meets once or twice (as may be required) in January/February each year.

 

The Committee comprises all Trust Board Chairs and met once (in February 2023) when there were present

 

Table 8 : Record of Attendance of Directors at Admissions Committee 2022 / 23

 

Directors

 

Meetings attended

Out of possible

Michelle Loughrey (Chair of the Committee)

1

1

Sukwinder Bassi

1

1

Anjana Gupta

1

1

Andrew Read (Chair of the Committee)

1

1

Molly Warrington

1

1

Mike Younger

1

1

Review of value for money

As Accounting Officer, the Chief Executive 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 uses its resources and how it has provided good value for money during each academic year and reports to the Board of Directors where value for money can be improved, including the use of benchmarking data where appropriate. The Accounting Officer has delivered improved value for money during the year by securing the following:

The purpose of the system of internal control

The system of internal control is designed to minimise and manage risk to a reasonable level rather than to eliminate risk altogether. A stated above, Directors acknowledge that risk management can provide only 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 achievement of Trust policies, aims and objectives, to evaluate the likelihood of those risks being realised, to assess the impact should they be realised and to manage the identified risks efficiently, effectively and economically. The system of internal control has been in place in Avanti Schools Trust for the period 1 September 2022 to 31 August 2023 and up to and including the date of approval of the annual report and financial statements.

AVANTI SCHOOLS TRUST
GOVERNANCE STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 22 -
Capacity to handle risk

The Board of Directors 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 Directors is of the view that there is a formal ongoing process for identifying, evaluating and managing the Academy Trust’s significant risks, which have been in place during the financial year and up to and including the date of approval of the annual report and financial statements. This process is regularly reviewed by the Board of Directors.

The risk and control framework

The Academy Trust’s system of internal financial control is based on a framework of regular management information and administrative procedures including segregation of duties and a system of delegation and accountability. In particular, it includes:

The Board of Directors has considered the need for a specific internal audit function and during the current Academic Year appointed Juniper as internal auditors to support the requirements of the Audit and Risk Committee. As noted above, following a detailed review by the Committee, the internal audit arrangements for 2023 / 24 and future years will be significantly enhanced to provide the level of targeted scrutiny that Directors agree is now appropriate to the Trust having regard to its development and growth over recent years. In addition to oversight, review and scrutiny – providing assurance to Directors, the role of the internal audit function includes advice on financial matters and undertaking a range of checks on Academy Trust financial and operational systems. The checks carried out during the academic year are listed under the Audit and Risk Committee (above).

Review of effectiveness

As Accounting Officer, the Chief Executive has responsibility for reviewing the effectiveness of the system of internal control. During the year in question, the review has been informed by:

The Accounting Officer has been advised of the implications of the result of their review of the system of internal control by the Audit and Risk Committee and a plan to address any identified weaknesses and ensure continuous improvement of the system is in place.

Approved by order of the Board of Directors on 13 December 2023 and signed on its behalf by:

Mr N Gor
Mr M Younger
Accounting Officer and Chief Executive Officer
Chair
AVANTI SCHOOLS TRUST
STATEMENT OF REGULARITY, PROPRIETY AND COMPLIANCE
FOR THE YEAR ENDED 31 AUGUST 2023
- 23 -

As accounting officer of Avanti Schools Trust, I have considered my responsibility to notify the academy trust Board of Directors 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, including for estates safety and 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 Academy Trust Handbook 2022, including responsbilities for estates safety and management.

I confirm that I and the academy trust's Board of Directors 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 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 Directors and ESFA.

Mr N Gor
Accounting Officer
13 December 2023
AVANTI SCHOOLS TRUST
STATEMENT OF DIRECTORS' RESPONSIBILITIES
FOR THE YEAR ENDED 31 AUGUST 2023
- 24 -

The directors (who also act as trustees for Avanti Schools Trust) are responsible for preparing the Directors' report and the accounts in accordance with the Academies Accounts Direction 2022 to 2023 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 Directors to prepare accounts for each financial year. Under company law, the Directors 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 Directors are required to:

 

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Directors 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 Directors 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 Directors on 13 December 2023 and signed on its behalf by:

Mr N Gor
Mr M Younger
Accounting Officer and Chief Executive Officer
Chair
AVANTI SCHOOLS TRUST
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AVANTI SCHOOLS TRUST
FOR THE YEAR ENDED 31 AUGUST 2023
- 25 -

Opinion

We have audited the accounts of Avanti Schools Trust (the 'charity') and its subsidiaries for the year ended 31 August 2023 which comprise the Group statement of financial activities, the Group and Parent Charitable Company balance sheet, the Group statement of cash flows and the notes to the accounts, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice), the Charities SORP 2019 and the Academies Accounts Direction 2022 to 2023 issued by the Education and Skills Funding Agency.

In our opinion the accounts:

-

give a true and fair view of the state of the Group and Parent 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.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Directors' 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 Directors 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 Directors 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.

AVANTI SCHOOLS TRUST
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AVANTI SCHOOLS TRUST (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 26 -
Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-

the information given in the Directors' report including the incorporated strategic report for the financial year for which the accounts are prepared is consistent with the accounts; and

-

the Directors' report including the incorporated strategic report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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 Directors' 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 Directors' remuneration specified by law are not made; or

-
we have not received all the information and explanations we require for our audit.
Responsibilities of Directors

As explained more fully in the statement of Directors' responsibilities, the Directors 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 Directors 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 Directors 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 Directors either intend to liquidate the charitable company, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the accounts

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

AVANTI SCHOOLS TRUST
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AVANTI SCHOOLS TRUST (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 27 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

AVANTI SCHOOLS TRUST
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AVANTI SCHOOLS TRUST (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 28 -

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.

Tracey Richardson BSc (Hons) FCA (Senior Statutory Auditor)
for and on behalf of Azets Audit Services
14 December 2023
Chartered Accountants
Statutory Auditor
Ruthlyn House
90 Lincoln Road
Peterborough
Cambridgeshire
United Kingdom
PE1 2SP
AVANTI SCHOOLS TRUST
INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO AVANTI SCHOOLS TRUST AND THE EDUCATION AND SKILLS FUNDING AGENCY
FOR THE YEAR ENDED 31 AUGUST 2023
- 29 -

In accordance with the terms of our engagement letter dated 10 May 2023 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 Avanti Schools 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 Avanti Schools Trust and ESFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to the Avanti Schools 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 Avanti Schools Trust and ESFA, for our work, for this report, or for the conclusion we have formed.

Respective responsibilities of Avanti Schools Trust's accounting officer and the reporting accountant

The accounting officer is responsible, under the requirements of Avanti Schools Trust’s funding agreement with the Secretary of State for Education dated 9 August 2012 and the Academy 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.

Approach

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:

AVANTI SCHOOLS TRUST
INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO AVANTI SCHOOLS TRUST AND THE EDUCATION AND SKILLS FUNDING AGENCY (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 30 -
Conclusion

In the course of our work, nothing has come to our attention which suggests that in all material respects the expenditure disbursed and income received during the 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.

Reporting Accountant
Azets Audit Services
Ruthlyn House
90 Lincoln Road
Peterborough
Cambridgeshire
PE1 2SP
United Kingdom
Dated: 14 December 2023
AVANTI SCHOOLS TRUST
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2023
- 31 -
Unrestricted
Restricted funds:
Total
Total
funds
General
Fixed asset
2023
2022
Notes
£'000
£'000
£'000
£'000
£'000
Income and endowments from:
Donations and capital grants
3
45
-
2,411
2,456
33,877
Charitable activities:
- Funding for educational operations
4
-
38,958
-
38,958
30,719
Other trading activities
5
1,234
93
-
1,327
527
Investments
6
1
-
-
1
1
Total
1,280
39,051
2,411
42,742
65,124
Expenditure on:
Charitable activities:
- Educational operations
9
-
37,342
4,214
41,556
35,703
Charitable expenditure -  transfer of existing academy out of the trust
32
-
(80)
6,821
6,741
-
Total
7
-
37,262
11,035
48,297
35,703
Net income/(expenditure)
1,280
1,789
(8,624)
(5,555)
29,421
Transfers between funds
22
-
(429)
429
-
-
Other recognised gains/(losses)
Actuarial gains on defined benefit pension schemes
24
-
874
-
874
9,602
Net movement in funds
1,280
2,234
(8,195)
(4,681)
39,023
Reconciliation of funds
Total funds brought forward
2,738
1,770
121,603
126,111
87,088
Total funds carried forward
4,018
4,004
113,408
121,430
126,111
AVANTI SCHOOLS TRUST
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED)
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2023
- 32 -
Comparative year information
Unrestricted
Restricted funds:
Total
Year ended 31 August 2022
funds
General
Fixed asset
2022
Notes
£'000
£'000
£'000
£'000
Income and endowments from:
Donations and capital grants
3
22
-
33,855
33,877
Charitable activities:
- Funding for educational operations
4
-
30,719
-
30,719
Other trading activities
5
494
33
-
527
Investments
6
1
-
-
1
Total
517
30,752
33,855
65,124
Expenditure on:
Charitable activities:
- Educational operations
9
-
32,849
2,854
35,703
Total
7
-
32,849
2,854
35,703
Net income/(expenditure)
517
(2,097)
31,001
29,421
Transfers between funds
22
-
(894)
894
-
Other recognised gains/(losses)
Actuarial gains on defined benefit pension schemes
24
-
9,602
-
9,602
Net movement in funds
517
6,611
31,895
39,023
Reconciliation of funds
Total funds brought forward
2,221
(4,841)
89,708
87,088
Total funds carried forward
2,738
1,770
121,603
126,111
AVANTI SCHOOLS TRUST
CONSOLIDATED BALANCE SHEET
AS AT 31 AUGUST 2023
- 33 -
2023
2022
Notes
£'000
£'000
£'000
£'000
Fixed assets
Tangible assets
14
111,552
120,030
Current assets
Stocks
17
42
36
Debtors
18
1,608
1,425
Cash at bank and in hand
12,645
11,627
14,295
13,088
Current liabilities
Creditors: amounts falling due within one year
19
(4,371)
(5,447)
Net current assets
9,924
7,641
Total assets less current liabilities
121,476
127,671
Creditors: amounts falling due after more than one year
21
(22)
(818)
Net assets before defined benefit pension scheme liability
121,454
126,853
Defined benefit pension scheme liability
24
(24)
(742)
Total net assets
121,430
126,111
Funds of the academy trust:
Restricted funds
22
- Fixed asset funds
113,408
121,603
- Restricted income funds
4,028
2,512
- Pension reserve
(24)
(742)
Total restricted funds
117,412
123,373
Unrestricted income funds
22
4,018
2,738
Total funds
121,430
126,111

The accounts on pages 31 to 63 were approved by the Directors and authorised for issue on 13 December 2023 and are signed on their behalf by:

Mr N Gor
Mr M Younger
Accounting Officer and Chief Executive Officer
Chair
Company registration number 07506598
AVANTI SCHOOLS TRUST
BALANCE SHEET - CHARITY ONLY
AS AT 31 AUGUST 2023
- 34 -
2023
2022
Notes
£'000
£'000
£'000
£'000
Fixed assets
Tangible assets
14
111,546
120,022
Investments
15
-
-
111,546
120,022
Current assets
Stocks
17
-
1
Debtors
18
1,762
1,558
Cash at bank and in hand
11,663
11,286
13,425
12,845
Current liabilities
Creditors: amounts falling due within one year
19
(4,216)
(5,615)
Net current assets
9,209
7,230
Total assets less current liabilities
120,755
127,252
Creditors: amounts falling due after more than one year
21
-
(786)
Net assets before defined benefit pension scheme liability
120,755
126,466
Defined benefit pension scheme liability
24
(24)
(742)
Total net assets
120,731
125,724
Funds of the academy trust:
Restricted funds
22
- Fixed asset funds
113,408
121,603
- Restricted income funds
3,329
2,125
- Pension reserve
(24)
(742)
Total restricted funds
116,713
122,986
Unrestricted income funds
22
4,018
2,738
Total funds
120,731
125,724

The accounts on pages 31 to 63 were approved by the Directors and authorised for issue on 13 December 2023 and are signed on their behalf by:

Mr N Gor
Mr M Younger
Accounting Officer and Chief Executive Officer
Chair
Company registration number 07506598
AVANTI SCHOOLS TRUST
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2023
- 35 -
2023
2022
Notes
£'000
£'000
£'000
£'000
Cash flows from operating activities
Net cash used in operating activities
25
(844)
(815)
Cash flows from investing activities
Dividends, interest and rents from investments
1
1
Capital grants from DfE Group
2,411
1,111
Purchase of tangible fixed assets
(538)
(981)
Net cash provided by investing activities
1,874
131
Cash flows from financing activities
Repayment of other loan
(12)
(5)
Net cash used in financing activities
(12)
(5)
Net increase/(decrease) in cash and cash equivalents in the reporting period
1,018
(689)
Cash and cash equivalents at beginning of the year
11,627
12,316
Cash and cash equivalents at end of the year
12,645
11,627
AVANTI SCHOOLS TRUST
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
- 36 -
1
Accounting policies

Avanti Schools Trust is a charitable company. The address of its principal place of business is given on page 1 and the nature of its operations are set out in the Directors' report.

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.

1.1
Basis of preparation

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 2021 to 2022 issued by ESFA, the Charities Act 2011 and the Companies Act 2006.

 

Avanti Schools Trust meets the definition of a public benefit entity under FRS 102.

 

The financial statements are presented in sterling (£), which is also the functional currency for the Academy Trust and consolidate the financial statements of the Academy Trust and its subsidiary companies. The Academy Trust has taken advantage of the exemption in Section 408 Companies Act 2006 not to present its own Statement of Financial Activities.

1.2
Going concern

The Directors 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 Directors 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.

1.3
Income

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

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

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.

AVANTI SCHOOLS TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 37 -
Other income

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.

Donated goods, facilities and services

The value of donated services and gifts in kind provided to the Trust is recognised in the statement of financial activities as incoming resources and resources expended at their estimated value to the Trust in the year in which they are receivable, and where the benefit is both quantifiable and material.

 

Where it has been ascertained that the risks and rewards of property subject to long lease agreements lie substantially with the Trust, a reasonable estimate of the gross value is included within fixed assets and, with an appropriate credit to voluntary income (gift in kind), within the restricted fixed asset fund. The valuation is at an estimation of depreciated replacement cost on the basis that the assets represent specialised property and the open market value for existing use is not readily available.

Donated fixed assets

Donated fixed assets are measured at fair value unless it is impractical to measure this reliably, in which case the cost of the item to the donor is used. The gain is recognised as income from donations and a corresponding amount is included in the appropriate fixed asset category and depreciated over the useful economic life in accordance with the academy trust‘s accounting policies.

1.4
Expenditure

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.

Charitable activities

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.

Governance costs

These include the costs attributable to the academy trust's compliance with constitutional and statutory requirements, including audit, strategic management, Directors' meetings and reimbursed expenses.

1.5
Tangible fixed assets and depreciation

Tangible fixed assets acquired since the Trust was established are included in the accounts at cost. Assets costing less than £5,000 are written off in the year of acquisition. All other assets are capitalised.

 

Where tangible fixed assets have been acquired with the aid of specific grants, either from the Government or from the private sector, they are included in the balance sheet at cost and depreciated over their expected useful economic life. The related grants are credited to a restricted fixed asset fund (in the Statement of Financial Activities and carried forward in the balance sheet). The depreciation on such assets is charged to the restricted fund in the Statement of Financial Activities.

AVANTI SCHOOLS TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 38 -

Depreciation is provided on all tangible fixed assets other than freehold land, at rates calculated to write them down to their estimated residual values on a straight-line basis over its expected useful life, as follows:

Land and buildings
0.8% & 2% (Building Improvements 6.67%)
Assets under construction
nil
Plant & machinery
10%
ICT
33.3%
Fixtures, fittings & equipment
20%
Motor vehicles
20%

Assets in the course of construction are included at cost. Depreciation on these assets is not charged until they are brought into use.

 

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.

1.6
Liabilities

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.

1.7
Leased assets

Rentals under operating leases are charged on a straight-line basis over the lease term.

1.8
Financial instruments

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.

Financial assets

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.

Financial liabilities

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.

1.9
Stock

Stock is valued at the lower of cost and net realisable value. Net realisable value is based on estimated selling price less further costs to completion and disposal. Provision is made for obsolete and slow moving stock.

AVANTI SCHOOLS TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 39 -
1.10
Taxation

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.

1.11
Pensions benefits

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.

1.12
Fund accounting

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 Directors.

Restricted fixed asset funds are resources which are to be applied to specific capital purposes imposed by funders where the asset acquired or created is held for a specific purpose.

Restricted general funds comprise all other restricted funds received and include grants from ESFA and DfE.

2
Critical accounting estimates and areas of judgement

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.

AVANTI SCHOOLS TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
2
Critical accounting estimates and areas of judgement
(Continued)
- 40 -
Critical accounting estimates and assumptions

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 24, 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.

Critical areas of judgement

The Directors consider that the only area of judgement that is critical to the academy trust's financial statements is the freehold property valuation, which was determined by the ESFA on conversion to academy trust status.

3
Donations and capital grants
Unrestricted
Restricted
Total
Total
funds
funds
2023
2022
£'000
£'000
£'000
£'000
Donated fixed assets
-
-
-
32,744
Capital grants
-
2,411
2,411
1,111
Other donations
45
-
45
22
45
2,411
2,456
33,877
AVANTI SCHOOLS TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 41 -
4
Funding for the academy trust's charitable activities
Unrestricted
Restricted
Total
Total
funds
funds
2023
2022
£'000
£'000
£'000
£'000
DfE/ESFA grants
General annual grant (GAG)
-
28,155
28,155
24,699
Other DfE/ESFA grants:
- UIFSM
-
541
541
487
- Pupil premium
-
608
608
519
- Start up grants
-
211
211
358
- PE and sports grant
-
163
163
173
- Rates
-
248
248
290
- Teachers pension grant
-
81
81
70
- Teachers pay grant
-
-
-
25
- Release of deficit funding
-
3,034
3,034
-
- Others
-
1,708
1,708
1,282
-
34,749
34,749
27,903
Other government grants
Local authority grants
-
1,657
1,657
1,115
Local authority nursery funding
-
428
428
228
-
2,085
2,085
1,343
Other incoming resources
-
2,124
2,124
1,473
Total funding
-
38,958
38,958
30,719
5
Other trading activities
Unrestricted
Restricted
Total
Total
funds
funds
2023
2022
£'000
£'000
£'000
£'000
Other income
1,234
93
1,327
527
6
Investment income
Unrestricted
Restricted
Total
Total
funds
funds
2023
2022
£'000
£'000
£'000
£'000
Short term deposits
1
-
1
1
AVANTI SCHOOLS TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 42 -
7
Expenditure
Non-pay expenditure
Total
Total
Staff costs
Premises
Other
2023
2022
£'000
£'000
£'000
£'000
£'000
Academy's educational operations
- Direct costs
19,485
-
2,599
22,084
19,193
- Allocated support costs
8,282
7,862
3,328
19,472
16,510
27,767
7,862
5,927
41,556
35,703
Net income/(expenditure) for the year includes:
2023
2022
£'000
£'000
Operating lease rentals
279
321
Depreciation of tangible fixed assets
2,195
2,058
Fees payable to auditor for:
- Audit
38
37
- Other services
16
18
Net interest on defined benefit pension liability
25
151
8
Central services

The Academy Trust has provided the following central services to its academies during the year;

 

· Major capital projects support

· Financial services

· Educational support services

· Others as arising

AVANTI SCHOOLS TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
8
Central services
(Continued)
- 43 -
The amounts charged during the year were as follows:
2023
2022
£'000
£'000
Avanti House Secondary School
821
675
Krishna Avanti Primary School (Croydon)
128
115
Krishna Avanti Primary School (Leicester)
199
172
Avanti Court Primary School
276
269
Krishna Avanti Primary School (Harrow)
254
242
Avanti House Primary School
236
225
Avanti Fields School
605
388
Avanti Gardens School
87
65
Avanti Hall School - left Trust 31 May 2023
153
159
Avanti Park School
161
131
Avanti Meadows School
74
43
Avanti Grange Secondary School
96
-
Avanti Brook Primary School - opened 1 September 2023
-
-
3,090
2,484
9
Charitable activities
2023
2022
All from restricted funds:
£'000
£'000
Direct costs
Educational operations
22,084
19,193
Support costs
Educational operations
19,472
16,510
41,556
35,703
Analysis of costs
2023
2022
£'000
£'000
Direct costs
Teaching and educational support staff costs
19,554
17,225
Staff development
175
181
Educational supplies and services
1,265
962
Examination fees
240
115
Educational consultancy
208
174
Other direct costs
642
536
22,084
19,193
AVANTI SCHOOLS TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
9
Charitable activities
(Continued)
- 44 -
Support costs
Support staff costs
8,282
8,247
Depreciation
2,195
2,058
Technology costs
370
514
Recruitment and support
190
198
Maintenance of premises and equipment
2,902
1,594
Cleaning
829
694
Energy costs
1,148
693
Rent, rates and other occupancy costs
637
660
Insurance
124
104
Security and transport
80
65
Catering
887
648
Finance costs
25
151
Other support costs
1,749
829
Governance costs
54
55
19,472
16,510
10
Governance costs
Total
Total
All from restricted funds:
2023
2022
£'000
£'000
Amounts included in support costs
Auditor's remuneration
- Audit of financial statements
38
37
- Other audit costs
16
18
54
55
AVANTI SCHOOLS TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 45 -
11
Staff
Staff costs
Staff costs during the year were:
2023
2022
£'000
£'000
Wages and salaries
20,182
17,505
Social security costs
1,941
1,684
Pension costs
3,847
4,812
Staff costs - employees
25,970
24,001
Agency staff costs
1,797
1,459
Staff restructuring costs
-
12
27,767
25,472
Staff development and other staff costs
244
181
Total staff expenditure
28,011
25,653
Staff restructuring costs comprise:
Redundancy payments
-
12
Staff numbers
The average number of persons employed by the academy trust during the year was as follows:
2023
2022
Number
Number
Teachers
317
317
Administration and support
405
408
Management
3
3
725
728
AVANTI SCHOOLS TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
11
Staff
(Continued)
- 46 -
Higher paid staff
The number of employees whose employee benefits (excluding employer pension costs and employer national insurance contributions) exceeded £60,000 was:
2023
2022
Number
Number
£60,000 - £70,000
14
14
£70,001 - £80,000
6
-
£80,001 - £90,000
2
1
£90,001 - £100,000
1
-
£100,001 - £110,000
-
3
£110,001 - £120,000
3
2
£160,001 - £170,000
1
1
Key management personnel

The key management personnel of the academy trust comprise the Directors and the senior management team as listed on page 1. The total amount of key management personnel employee benefits (including employer pension contributions and employer national insurance contributions) received by key management personnel for their services to the academy trust was £534k (2022: £518k).

12
Directors' remuneration and expenses

One or more Directors has been paid remuneration or has received other benefits from employment with the Academy Trust. The staff Directors and Trustees only receive remuneration in respect of services they provide undertaking the roles of staff members under their contracts of employment. Other Directors did not receive any payments, other than expenses, from the Academy Trust in respect of their role as Directors. During the year, travel and subsistence payments totalling £3,357 (2022: £1,080) were reimbursed to five (2022: five) Directors.

 

The one (2022: one) staff Director who received remuneration was:

 

Name                                     

N. Gor

    Remuneration £165,001 - £170,000 (2022: £160,001 - £165,000)

    Employer’s pension contributions £30,001 - £35,000 (2022: £25,000 - £30,000)

 

Other related party transactions involving the Directors are set out within the related parties note.

13
Directors' and officers' insurance

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.

AVANTI SCHOOLS TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 47 -
14
Tangible fixed assets
Group
Land and buildings
Assets under construction
Plant & machinery
ICT
Fixtures, fittings & equipment
Motor vehicles
Total
£'000
£'000
£'000
£'000
£'000
£'000
£'000
Cost
At 1 September 2022
126,199
939
382
167
204
59
127,950
Transfer on completion
726
(939)
42
-
121
-
(50)
Transfer of school leaving
(7,149)
-
-
-
(7)
-
(7,156)
Additions
312
-
30
96
150
-
588
At 31 August 2023
120,088
-
454
263
468
59
121,332
Depreciation
At 1 September 2022
7,428
-
179
160
108
45
7,920
Transfer of school leaving
(333)
-
-
-
(2)
-
(335)
Charge for the year
2,018
-
41
63
63
10
2,195
At 31 August 2023
9,113
-
220
223
169
55
9,780
Net book value
At 31 August 2023
110,975
-
234
40
299
4
111,552
At 31 August 2022
118,771
939
203
7
96
14
120,030
AVANTI SCHOOLS TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
14
Tangible fixed assets
(Continued)
- 48 -
Company
Land and buildings
Assets under construction
Plant & machinery
ICT
Fixtures, fittings & equipment
Motor vehicles
Total
£'000
£'000
£'000
£'000
£'000
£'000
£'000
Cost
At 1 September 2022
126,199
939
382
167
195
52
127,934
Transfer on completion
726
(939)
42
-
121
-
(50)
Transfer of school leaving
(7,149)
-
-
-
(7)
-
(7,156)
Additions
312
-
30
96
150
-
588
At 31 August 2023
120,088
-
454
263
459
52
121,316
Depreciation
At 1 September 2022
7,428
-
179
160
107
38
7,912
Transfer of school leaving
(333)
-
-
-
(2)
-
(335)
Charge for the year
2,018
-
41
63
61
10
2,193
At 31 August 2023
9,113
-
220
223
166
48
9,770
Net book value
At 31 August 2023
110,975
-
234
40
293
4
111,546
At 31 August 2022
118,771
939
203
7
88
14
120,022
AVANTI SCHOOLS TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
14
Tangible fixed assets
(Continued)
- 49 -
The net book value of land and buildings comprises:
2023
2022
Group and company
£'000
£'000
Freeholds
21,512
28,571
Long leaseholds (over 50 years)
82,430
83,021
Short leaseholds (under 50 years)
7,033
7,179
110,975
118,771

Security held by the Secretary of State for Education

Group and Company

 

Legal charges dated 30 March 2012, 18 February 2015 and two dated 31 October 2019 are held by The Secretary of State for Education, giving him/her a fixed charge over land and buildings at the following:

 

 

The charges were registered with Companies House on 17 April 2012, 9 March 2015, 4 November 2019 and 5 November 2019.

15
Fixed asset investments - Company only
Total
Historical cost:
At 31 August 2023
101
At 31 August 2022
101

The investment in group undertakings relates to the cost of:

 

 

AVANTI SCHOOLS TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
15
Fixed asset investments - Company only
(Continued)
- 50 -
Holdings of more than 20%
The academy trust holds more than 20% of the share capital of the following undertakings:
Company
Country of registration or incorporation
Shares held
Class
%
Subsidiary undertakings
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Ordinary
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Ordinary
The aggregate amount of capital and reserves and the results of these undertakings for the last relevant financial year were as follows:
Capital and reserves
Profit/(loss) for the year
Principal activities
£'000
£'000
Error in formula ->#cd125\#nf4,add,\<-
Error in formula ->#cd125\#nf14,,\<-
472
472
228
220
16
Financial instruments
Group
Company
2023
2022
2023
2022
£'000
£'000
£'000
£'000
Carrying amount of financial assets
Trade debtors
178
140
37
84
Other debtors
493
494
613
693
Bank and cash
12,645
11,627
11,663
11,286
13,316
12,261
12,313
12,063
Carrying amount of financial liabilities
Trade creditors
(118)
(664)
(75)
(949)
Other creditors
(973)
(1,289)
(772)
(1,258)
Accruals
(1,725)
(2,006)
(1,710)
(1,992)
(2,816)
(3,959)
(2,557)
(4,199)
17
Stock
Group
Company
2023
2022
2023
2022
£'000
£'000
£'000
£'000
Stock
42
36
-
1
42
36
-
1
AVANTI SCHOOLS TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 51 -
18
Debtors
Group
Company
2023
2022
2023
2022
£'000
£'000
£'000
£'000
Trade debtors
178
140
37
84
Other debtors
493
494
793
693
Prepayments and accrued income
937
791
932
781
1,608
1,425
1,762
1,558
19
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£'000
£'000
£'000
£'000
Other loans
11
13
-
-
Trade creditors
118
664
75
949
Other taxation and social security
459
435
394
376
Other creditors
973
1,289
952
1,258
Accruals and deferred income
2,810
3,046
2,795
3,032
4,371
5,447
4,216
5,615
20
Deferred income - Group and company
2023
2022
£'000
£'000
Deferred income is included within:
Creditors due within one year
1,085
1,040
Deferred income at 1 September 2022
1,040
1,237
Released from previous years
(1,040)
(1,237)
Resources deferred in the year
1,085
1,040
Deferred income at 31 August 2023
1,085
1,040

Income received during the year specific to funding for future periods has been deferred accordingly. As at the balance sheet date the academy trust was holding funds received in advance for the year 2023/24 relating to Infant Free School Meals, educational trips, rates relief, catering and other revenue grants.

AVANTI SCHOOLS TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 52 -
21
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
£'000
£'000
£'000
£'000
Other loans
22
32
-
-
Other creditors
-
786
-
786
22
818
-
786
Analysis of loans
Wholly repayable within five years
33
45
-
-
Less: included in current liabilities
(11)
(13)
-
-
Amounts included above
22
32
-
-
Loan maturity
Due in more than one year but not more than two years
12
12
-
-
Due in more than two years but not more than five years
10
20
-
-
22
32
-
-
AVANTI SCHOOLS TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 53 -
22
Funds
Balance at
Gains,
Balance at
1 September
losses and
31 August
2022
Income
Expenditure
transfers
2023
£'000
£'000
£'000
£'000
£'000
Restricted general funds
General Annual Grant (GAG)
2,512
28,155
(26,210)
(429)
4,028
Start up grants
-
211
(211)
-
-
UIFSM
-
541
(541)
-
-
Pupil premium
-
608
(608)
-
-
Other DfE/ESFA grants
-
5,234
(5,234)
-
-
Other government grants
-
2,085
(2,085)
-
-
Other restricted funds
-
2,217
(2,217)
-
-
Pension reserve
(742)
-
(156)
874
(24)
1,770
39,051
(37,262)
445
4,004
Restricted fixed asset funds
DfE group capital grants
1,573
2,411
(2,019)
(109)
1,856
General fixed assets
120,030
-
(9,016)
538
111,552
121,603
2,411
(11,035)
429
113,408
Total restricted funds
123,373
41,462
(48,297)
874
117,412
Unrestricted funds
General funds
2,738
1,280
-
-
4,018
Total funds
126,111
42,742
(48,297)
874
121,430

The specific purposes for which the funds are to be applied are as follows:

 

General funds represent those resources which may be used towards meeting any of the objects of the Academy Trust at the discretion of the Directors.

 

Restricted fixed asset funds are resources that are to be applied to specific capital purposes imposed by the ESFA and DfE where the asset acquired or created is held for a specific purpose.

 

Restricted funds comprise all other restricted funds received and include grants from the ESFA and DfE.

 

Under the funding agreement with the Secretary of State, the Academy Trust was not subject to a limit on the amount of GAG that it could carry forward at 31 August 2023.

AVANTI SCHOOLS TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
22
Funds
(Continued)
- 54 -
Comparative information in respect of the preceding period is as follows:
Balance at
Gains,
Balance at
1 September
losses and
31 August
2021
Income
Expenditure
transfers
2022
£'000
£'000
£'000
£'000
£'000
Restricted general funds
General Annual Grant (GAG)
3,647
24,699
(24,940)
(894)
2,512
Start up grants
-
358
(358)
-
-
UIFSM
-
487
(487)
-
-
Pupil premium
-
519
(519)
-
-
Other DfE/ESFA grants
-
1,840
(1,840)
-
-
Other government grants
-
1,343
(1,343)
-
-
Other restricted funds
-
1,506
(1,506)
-
-
Pension reserve
(8,488)
-
(1,856)
9,602
(742)
(4,841)
30,752
(32,849)
8,708
1,770
Restricted fixed asset funds
DfE group capital grants
1,345
1,111
(1,509)
626
1,573
General fixed assets
88,363
32,744
(1,345)
268
120,030
89,708
33,855
(2,854)
894
121,603
Total restricted funds
84,867
64,607
(35,703)
9,602
123,373
Unrestricted funds
General funds
2,221
517
-
-
2,738
Total funds
87,088
65,124
(35,703)
9,602
126,111
AVANTI SCHOOLS TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
22
Funds
(Continued)
- 55 -
Total funds analysis by academy
2023
2022
Fund balances at 31 August 2023 were allocated as follows:
£'000
£'000
Avanti House Secondary School
-
-
Krishna Avanti Primary School (Croydon)
-
-
Krishna Avanti Primary School (Leicester)
-
-
Avanti Court Primary School
-
-
Krishna Avanti Primary School (Harrow)
-
-
Avanti House Primary School
-
-
Avanti Fields School
-
-
Avanti Gardens School
-
-
Avanti Hall School - left Trust 31 May 2023
-
-
Avanti Park School
-
-
Avanti Meadows School
-
-
Avanti Grange Secondary School
-
-
Avanti Brook Primary School - opened 1 September 2023
-
-
Central services
8,046
5,250
Total before fixed assets fund and pension reserve
8,046
5,250
Restricted fixed asset fund
113,408
121,603
Pension reserve
(24)
(742)
Total funds
121,430
126,111
AVANTI SCHOOLS TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
22
Funds
(Continued)
- 56 -
Total cost analysis by academy
Expenditure incurred by each academy during the year was as follows:
Teaching and
Other costs
educational
Other support
Educational
excluding
Total
Total
support staff
staff costs
supplies
depreciation
2023
2022
£'000
£'000
£'000
£'000
£'000
£'000
Avanti House Secondary School
4,916
368
189
1,309
6,782
5,726
Krishna Avanti Primary School (Croydon)
613
109
63
245
1,030
844
Krishna Avanti Primary School (Leicester)
1,203
222
76
231
1,732
1,906
Avanti Court Primary School
2,193
354
92
355
2,994
3,224
Krishna Avanti Primary School (Harrow)
1,520
174
110
341
2,145
2,094
Avanti House Primary School
1,450
126
125
637
2,338
2,141
Avanti Fields School
3,016
410
228
730
4,384
2,280
Avanti Gardens School
802
212
144
477
1,635
1,425
Avanti Hall School - left Trust 31 May 2023
1,428
252
172
366
2,218
1,260
Avanti Park School
1,710
167
94
596
2,567
2,213
Avanti Meadows School
525
61
59
226
871
569
Avanti Grange Secondary School
525
21
77
526
1,149
-
Avanti Brook Primary School - opened 1 September 2023
-
-
-
-
-
-
Central services
158
1,363
96
3,021
4,638
6,001
20,059
3,839
1,525
9,060
34,483
29,683
23
Analysis of net assets between funds - Group
Unrestricted
Restricted funds:
Total
Funds
General
Fixed asset
Funds
£'000
£'000
£'000
£'000
Fund balances at 31 August 2023 are represented by:
Tangible fixed assets
-
-
111,552
111,552
Current assets
4,018
8,421
1,856
14,295
Current liabilities
-
(4,371)
-
(4,371)
Non-current liabilities
-
(22)
-
(22)
Pension scheme liability
-
(24)
-
(24)
Total net assets
4,018
4,004
113,408
121,430
AVANTI SCHOOLS TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
23
Analysis of net assets between funds - Group
(Continued)
- 57 -
Unrestricted
Restricted funds:
Total
Funds
General
Fixed asset
Funds
£'000
£'000
£'000
£'000
Fund balances at 31 August 2022 are represented by:
Tangible fixed assets
-
-
120,030
120,030
Current assets
2,738
8,777
1,573
13,088
Current liabilities
-
(5,447)
-
(5,447)
Non-current liabilities
-
(818)
-
(818)
Pension scheme liability
-
(742)
-
(742)
Total net assets
2,738
1,770
121,603
126,111
24
Pension and similar obligations

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 seven different local authorities (Leicestershire County Council, London Borough of Harrow, London Borough of Redbridge, London Borough of Croydon, City of Bristol, Devon and Somerset. All 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 £605k were payable to the schemes at 31 August 2023 (2022: £435k) and are included within creditors.

Teachers' Pension Scheme
Introduction

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.

Valuation of the Teachers' Pension Scheme

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.

AVANTI SCHOOLS TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
24
Pension and similar obligations
(Continued)
- 58 -

The 31 March 2016 TPS actuarial valuation results were implemented from 1 September 2019. The key elements of the valuation and subsequent consultation were:

The latest actuarial TPS valuation results, as at 31 March 2020, were released in October 2023. The revised employer contribution rate, arising from this valuation, is due to be implemented from 1 April 2024.

The employer's pension costs paid to the TPS in the period amounted to £2,554k (2022: £ 2,068k).

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.

Local Government Pension 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 23.0% 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.

 

The actuarial valuation prepared under FRS102 in respect of the Local Government Pension Scheme indicated that the Trust’s share of the scheme was in surplus as at the year end to the value of £1,220k. The actuaries have undertaken an asset ceiling calculation which, on the basis that a minimum funding requirement does exist, indicates that none of that surplus is likely to result in either a refund of contributions or a reduction in contributions in the future.

Total contributions made
2023
2022
£'000
£'000
Employer's contributions
895
744
Employees' contributions
307
259
Total contributions
1,202
1,003
AVANTI SCHOOLS TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
24
Pension and similar obligations
(Continued)
- 59 -
Principal actuarial assumptions
2023
2022
%
%
Rate of increase in salaries
3.65
3.7
Rate of increase for pensions in payment/inflation
2.93
3.0
Discount rate for scheme liabilities
5.22
4.3
The current mortality assumptions include sufficient allowance for future improvements in mortality rates.  The assumed life expectations on retirement age 65 are:
2023
2022
Years
Years
Retiring today
- Males
21.8
22.1
- Females
24.1
24.3
Retiring in 20 years
- Males
22.2
23.3
- Females
25.5
26.1

Scheme liabilities would have been affected by changes in assumptions as follows:

2023
2022
Discount rate - 0.1%
234
437
CPI rate + 0.1%
235
426
Salary rate + 0.1%
3
233
The academy trust's share of the assets in the scheme
2023
2022
Fair value
Fair value
£'000
£'000
Equities
5,883
5,843
Bonds
1,378
1,619
Cash
181
114
Property
1,078
818
Other assets
104
-
Impact of asset ceiling
(1,220)
-
Total market value of assets
7,404
8,394
The actual return on scheme assets was £49,000 (2022: £(436,000)).
AVANTI SCHOOLS TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
24
Pension and similar obligations
(Continued)
- 60 -
Amount recognised in the statement of financial activities
2023
2022
£'000
£'000
Current service cost
1,104
2,449
Interest income
(363)
(140)
Interest cost
388
291
Administration expenses
2
-
Total operating charge
1,131
2,600
Changes in the present value of defined benefit obligations
2023
2022
£'000
£'000
At 1 September 2022
9,136
16,330
Transferred out on existing academies leaving the academy trust
(1,068)
-
Current service cost
1,104
2,449
Interest cost
388
291
Employee contributions
307
259
Actuarial gain
(2,408)
(10,178)
Benefits paid
(31)
(15)
At 31 August 2023
7,428
9,136
Changes in the fair value of the academy trust's share of scheme assets
2023
2022
£'000
£'000
At 1 September 2022
8,394
7,842
Transferred out on existing academies leaving the academy trust
(988)
-
Interest income
363
140
Actuarial loss
(314)
(576)
Employer contributions
895
744
Employee contributions
307
259
Benefits paid
(31)
(15)
Effect of non-routine settlements and administration expenses
(2)
-
Impact of asset ceiling
(1,220)
-
At 31 August 2023
7,404
8,394
AVANTI SCHOOLS TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 61 -
25
Reconciliation of net (expenditure)/income to net cash flow from operating activities
2023
2022
Notes
£'000
£'000
Net (expenditure)/income for the reporting period (as per the statement of financial activities)
(5,555)
29,421
Adjusted for:
Net deficit on transfer of academy out of the trust
32
6,741
-
Capital grants from DfE and other capital income
(2,411)
(33,855)
Investment income receivable
6
(1)
(1)
Defined benefit pension costs less contributions payable
24
211
1,705
Defined benefit pension scheme finance cost
24
25
151
Depreciation of tangible fixed assets
2,195
2,058
(Increase) in stocks
(6)
(16)
(Increase)/decrease in debtors
(183)
86
(Decrease) in creditors
(1,860)
(364)
Net cash used in operating activities
(844)
(815)
26
Analysis of changes in net funds
1 September 2022
Cash flows
31 August 2023
£'000
£'000
£'000
Cash
11,627
1,018
12,645
Loans falling due within one year
(13)
2
(11)
Loans falling due after more than one year
(32)
10
(22)
11,582
1,030
12,612
27
Long-term commitments
Operating leases
At 31 August 2023 the total of the academy trust's future minimum lease payments under non-cancellable operating leases was:
2023
2022
£'000
£'000
Amounts due within one year
286
280
Amounts due in two and five years
1,132
1,100
Amounts due after five years
3,350
3,575
4,768
4,955
AVANTI SCHOOLS TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 62 -
28
Capital commitments
2023
2022
£'000
£'000
Expenditure contracted for but not provided in the accounts
42
16
29
Related party transactions

Owing to the nature of the academy trust and the composition of the Board of Directors being drawn from local public and private sector organisations, transactions may take place with organisations in which the Directors have an interest. The following related party transactions took place in the financial period.

 

Some of the governors have children who are pupils at the schools, consequently there will be transactions between those governors and the academy in respect of their children’s education. These are on the same basis as other pupils at the schools.

 

Group

 

No related party transactions took place in the current year.

 

Company

 

During the year the company made purchases from Govinda's Limited of £2,160k (2022: £1,747k). At 31 August 2023 amounts owed to Govinda's Limited was £nil (2022: £45k) which are included in creditors: amounts due within one year.

 

Govinda's Limited (company number 04977927) is a related party by virtue of the fact it is a subsidiary of Avanti Schools Trust.

 

During the year the company made purchases from Avanti Services Limited of £3,115k (2022: £2,307k). At 31 August 2023 amounts owed to Avanti Services Limited was £nil (2022: £251k) which are included in creditors: amounts due within one year.

 

Avanti Services Limited (company number 10898289) is a related party by virtue of the fact it is a subsidiary of Avanti Schools Trust.

30
Members' liability

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.

31
Agency arrangements

The academy trust distributes 16-19 bursary funds to students as an agent for ESFA. In the accounting period ending 31 August 2023 the academy trust received £8k (2022: £7k) and disbursed £1k (2022: £4k) from the fund. An amount of £10k (2022: £3k) is in included in other creditors relating to undistributed funds that is repayable to ESFA.

32
Transfer of existing academies out of the academy trust

Avanti Hall School

AVANTI SCHOOLS TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
32
Transfer of existing academies out of the academy trust
(Continued)
- 63 -
2023
Net assets transferred
£'000
Freehold land and buildings
6,816
Other tangible fixed assets
5
Pension scheme
(80)
Total net assets
6,741
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