The Governors present their annual report together with the accounts and auditor's report of the charitable company for the year 1 September 2023 to 31 August 2024. The annual report serves the purposes of both a trustees' report, and a directors' report and strategic report under company law.
The academy trust operates an academy for pupils aged between 7 and 18 serving a catchment area of Peterborough and surrounding counties. It has a pupil capacity of 1,150 and had a roll of 1,253 (2023: 1,254) in the Autumn census.
The academy trust is a company limited by guarantee and an exempt charity. The charitable company's memorandum and articles of association are the primary governing documents of the academy trust.
The Governors are the trustees of The King's (The Cathedral) School, Peterborough and are also the directors of the charitable company for the purposes of company law. Details of the Governors who served during the year, and up to the date these accounts are approved, are included in the Reference and Administrative Details on page 1.
The Board of Governors is responsible for the authorisation of spending within agreed budgets and limits. There are five Governor committees which report to the Board of Governors: Finance, Audit, Personnel, Curriculum, and Admissions. The Board has adopted a formal Scheme of Delegation to delegate functions to those Committees, whilst some spending control is devolved to the Headteacher as Accounting Officer and to members of the Senior Leadership Team and Senior Managers.
Each member of the charitable company undertakes to contribute to the assets of the charitable company in the event of it being wound up while they are a member, or within one year after they cease to be a member, such amount as may be required, not exceeding £10, for the debts and liabilities contracted before they ceased to be a member.
The Academy Trust has insurance cover of £5m for Governors' Liabilities.
Nine Governors are appointed by The Dean and Chapter of Peterborough Cathedral and one by the Diocese of Peterborough. Two are Community Governors appointed by the members. The Headteacher is a Staff Governor, and two other members of staff are elected Staff Governors. Four Parent Governors, who must be parents of students on roll at the time of their election, are elected by other such parents. Vacancies are advertised to the relevant constituencies, and nominations sought. Those appointing Chapter and Community Governors would seek to achieve a breadth of experience and skills across the Board of Governors.
A programme of induction and training is offered to all Governors, who are encouraged to attend relevant training organised by the Academy and external agencies, including the Diocese of Peterborough and Peterborough City Council.
The Board of Governors is responsible for setting general policy, adopting a development plan and annual budget, monitoring the academy by the use of budgets and making major decisions about the direction and nature of the academy, capital expenditure and the appointment of the Headteacher and Deputy Headteacher(s). Governors are also involved in the appointment of other members of the academy staff by taking part in the interview process.
The Board of Governors is responsible for the authorisation of spending within agreed budgets and limits. There are six Governor committees which report to the Board of Governors: Finance, Audit, Personnel, Curriculum, Admissions and Fundraising. The Board has adopted a formal Scheme of Delegation to delegate functions to those Committees, whilst some spending control is devolved to the Headteacher as Accounting Officer and to members of the Senior Leadership Team and Senior Managers. The Chairs of the committees also meet together on a regular basis.
The Senior Management Team consists of the Headteacher, Deputy Headteacher Academic, Deputy Headteacher Pastoral, three Assistant Headteachers for lower school, middle school and sixth form, the Special Educational Needs & Disabilities Co-ordinator and the Chief Financial Officer. In addition, the Academy has a policy for seconding a middle manager in the School to the Senior Management Team for an academic year.
The Board of Governors operates a Whole School Pay Policy, as the “Relevant Body” as defined in the School Teachers’ Pay and Conditions (STPC) document, following the pay tables determined by the Secretary of State and set out in the STPC. Having determined the policy, the Board delegates the day to day management of the policy to the Headteacher in consultation with the Personnel Committee and the Chair of Governors.
At the start of each academic year, the Board of Governors will set performance objectives for the Headteacher together with performance indicators and measures, reflecting priorities identified in the School’s development plan. After an annual review of performance, any changes to the Headteacher’s salary will be decided upon by the Personnel Committee.
The Board of Governors, following consideration of the relevant criteria set out in the STPC Document, will determine the individual range for a newly appointed Deputy Headteacher or Assistant Headteacher’s salary. At the time of the annual assessment of teachers’ salaries, the Headteacher will decide if any Deputy or Assistant Headteacher should be awarded an additional pay point, subject to the maximum of the individual range, and report this to the Personnel Committee.
Schola Regia Trading Ltd is a wholly-owned subsidiary. The company is dormant.
The Academy has a close working relationship with Peterborough Cathedral.
The Academy collaborates with the St John Fisher Roman Catholic High School by offering some Sixth Form teaching to their students.
The Academy is proud of its long-standing history and tradition going back to 1541, whilst embracing everything the modern world has to offer, as it looks towards the future. It values and strives to encourage individual academic success alongside musical, cultural and sporting achievements. The Academy's main aim is to provide the very best all-round educational experience for all youngsters on its roll. The Academy's objectives are specifically related to advancing for the public benefit and education in the United Kingdom, in particular, but without prejudice to, the generality of the foregoing by establishing, maintaining, carrying on, managing and developing a school with the designated Church of England religious character, offering a broad and balanced curriculum in accordance with the principles, practices and tenets of the Church of England, which includes representing other faiths and in partnership with the Church of England at Parish and Diocesan level.
The School’s Values and Ethos are:
To recognise and value the contribution of every member of the school community;
To maintain the tradition of achievement and academic excellence to the best of our individual's ability;
To foster a community in which good mutual communications are promoted and in which, through pastoral care, all students achieve self-esteem and an appreciation of others with a sense of responsibility for their environment;
To provide a broad range of extra-curricular activities that give opportunities for all to develop individual interests and skills;
To encourage a happy, well-motivated staff to work effectively and successfully through good leadership, efficient structures and the provision of resources.
The basis for these values is the Christian ethos of the School, which aims to be “A Family Achieving Excellence”.
The Governors have complied with their duty to have due regard to the guidance on public benefit issued by the Charity Commission in exercising their powers and duties.
Since the Academy opened in January 2011 it has been full in every year-group, including the 60 pupils in the Junior Department, which opened in September 2011. In the main school Years 7, 9 and 10 have 150 youngsters in each year; Years 8 and 11 have 180 in it. The Sixth Form is over subscribed to its Published Admissions Number of 340.
The Academy sets targets for all pupils; these relate to external benchmarking data. The Academy subscribes to national schemes for determining value added at each of the Key Stages. Each member of the teaching staff is observed teaching a minimum of once a term by line managers and the Senior Leadership Team, so that standards across the Academy can be monitored. The Academy has in place a full performance management process.
Examination results were again excellent for 2024 . The GCSE results were well above national averages with a 100% pass rate and 44% of all grades 7-9. Our School’s Progress 8 score has been calculated as approximately +0.78 which was significantly above national average, and many subject areas also demonstrated progress and attainment significantly above national averages; 9 showed positive progress figures of more than one grade.
The Post 16 results were excellent at A-Level. The A-Level pass rate being 99%, of which 37% of grades were A or A* and 66% were A* to B.
72% of students achieved their first choice at post 18 level. 15 students achieved places on medical or veterinary related courses and 7 achieved places at Oxford and Cambridge.
In July 2024, the Academy was inspected by Ofsted Inspectors. The Academy was judged 'Outstanding' in every category. (The previous Ofsted inspection was in 2013 and was also Outstanding in all areas.)
During January 2018 the Academy maintained its “Outstanding” grade as a result of the Statutory Inspection of Anglican and Methodist Schools (SIAMS), undertaken by The Church of England Education Office and The Methodist Church. The report commented that “The distinctiveness and effectiveness of The King’s (The Cathedral) School as a Church of England school are outstanding.”
After making appropriate enquiries, the Board of Governors has a reasonable expectation that the academy trust has adequate resources to continue in operational existence for the foreseeable future. For this reason the Board of Governors continues to adopt the going concern basis in preparing the accounts. Further details regarding the adoption of the going concern basis can be found in the statement of accounting policies.
The Academy closed the 2023-24 year with a revenue surplus. Overall the deficit outcome was planned – using reserves to fund an additional (third) dining facility and deploy significant investment into ICT infrastructure.
The School had a successful CIF bid to replace the fire and emergency alarms, and this work is ongoing.
Most of the Trust’s income is obtained from the ESFA in the form of recurrent grants, the use of which is restricted to particular purposes. The grants received from the ESFA during the period ended 31 August 2024 were £7,758,242 (2023: £7,031,036) The Trust also receives a significant amount of funding from SEN funding from local authorities to the value of £371,702 (2023: £302,920). The trusts total revenue income was £9,369,364 (2023: £8,535,610). This was used to fund revenue expenditure of £9,002,650, leaving an in year surplus of £366,714.
An actuarial loss of £4,000 resulted on the defined benefit Local Government Pension Scheme, following the previous year’s gain of £362,000. As stated in note 25 to the financial statements, Parliament agreed, at the request of the Secretary of State for Education, to a guarantee that, in the event of academy closure, outstanding Local Government Pension Scheme liabilities would be met by the Department for Education. The guarantee came into force on 18 July 2013.
The Academy’s reserves policy is designed to ensure the stability of the Academy’s operations, to smooth the impact of changes in financial circumstances, such as large unbudgeted expenditure and cyclical maintenance, and to fund working capital requirements. The Governors review the level of Academy reserves annually, identifying the need for access to the funds and confirming that the use is consistent with the purpose of the reserve as contained within the formal Reserves Policy, which is to hold at least 7.5% of General Annual Grant income as reserves.
As detailed in note 18 to the financial statements, total funds at 31 August 2024 were £18,757,480 (2023: £18,893,986).
Of these reserves £17,304,178 are restricted and therefore not available for use, other than as allowed by the restriction, or distribution. Of this figure: £16,990,718 represents the current net book value of the Academy’s land, buildings, fixtures and fittings; the former pension liability is now a pension reserve of £149,000; there are prize funds of £51,496; and the endowment fund of £40,070 represents the market value of donated investments.
Total unrestricted reserves of £1,036,163 consist of designated reserves of £672,341 and £363,822 of general funds.
We acknowledge our actual reserve is greater than the sum indicated as our agreed Reserves Policy position. We are planning best use of these funds in an Estates Plan which will focus on the School’s required investments for 1 year, 3 years, and 5 years.
A designated asset maintenance and replacement plan is maintained with a view to ensure the balance of the Property Maintenance fund is sufficient for the Academy's needs over the next two years. The Plan will be extended to incorporate a long range vision covering the next 5 fives of strategic investment.
Due to the continuance of low interest rates, resulting in an erosion of the real value of the academy’s cash reserves, the Governors continually review the academy’s investment policy. The Governors’ power is governed by the Trustee Act 2000. This confers a general power of investment and requires the Governors to invest in a diversified range of suitable investments.
The objectives of the Governors’ policy are:
In determining the level of funds available that could be considered for investment, due regard will be taken of the short, medium and long term requirements of the academy. These are defined as follows:
The academy inherited a small number of investments with CCLA and M&G from the predecessor school that are recorded on the balance sheet of the academy. Their future retention or disposal is part of an ongoing review to ensure they are compliant with the current policy.
Current policy is for all other surplus funds to be held as cash deposits. |
The Board of Governors has assessed the major risks to which the Academy is exposed, in particular those relating to teaching, provision of facilities and other operational areas of the Academy, and its finances. A formal Risk Register is in place. The Board of Governors have implemented a number of systems to assess risks that the school faces, especially in the operational areas (e.g. in relation to teaching, health and safety, bullying and school trips) and in relation to the control of finance. They have systems and operational procedures in place e.g. vetting of new staff and internal financial controls in order to minimise risk. |
Uncertainty over the future of school funding is also a major cause for concern given the recent introduction of the National Funding Formula and the current political climate.
The Academy has dedicated Governors supporting the schools fundraising efforts.
The objective is to maximise fundraising efforts in support of school activities. Areas of fundraising include:
Parents of current students of the Academy;
Past students of the Academy who may or may not be members of the Old Petriburgians’ Association;
Kings’ Friends, formerly the Parent and Staff Association of the Academy;
Local businesses with connections to the Academy;
Grant making bodies.
During the year ended 31 August 2024:
Regular donations, most gift aided, have been received from parents of current and past students of the Academy;
The Committee is also tasked with looking at ways local businesses with Academy connections may be able to help the work of the Academy by offering financial support, corporate sponsorship or work placements for students.
The Academy will focus on building community links with local companies to explore further funding opportunities.
To protect the quality of education in terms of a broad and balanced curriculum and the broad and exciting extra-curricular offering that the academy has been able to offer in the past, at a time of falling income per head in real terms and rising costs.
To further redefine our educational priorities in terms of the range of courses the academy should or can offer at GCSE, AS and A-levels, in the light of latest legislation and the academy’s reducing funding.
To maximise existing and create new income streams, through the work of the Development Committee.
To continue to apply for Condition Improvement Funding for projects to improve the academy's facilities, particularly with regard to catering facilities and the fabric of the buildings.
To maximise the contribution that IT can make to Teaching and Learning by continually updating the academy's IT infrastructure and investing in ensuring our cyber security precautions are robust.
To close the gap for vulnerable learners.
To find strategies to improve on an outstanding school.
A resolution proposing that Azets Audit Services be reappointed as auditor of the charitable company will be put to the members.
The Governors' report, incorporating a strategic report, was approved by order of the Board of Governors, as the company directors, on
As Governors, we acknowledge we have overall responsibility for ensuring that The King's (The Cathedral) School, Peterborough has an effective and appropriate system of control, financial and otherwise. However, such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives, and can provide only reasonable and not absolute assurance against material misstatement or loss.
The Board of Governors has delegated the day-to-day responsibility to the headteacher, as accounting officer, for ensuring financial controls conform with the requirements of both propriety and good financial management and in accordance with the requirements and responsibilities assigned to it in the funding agreement between The King's (The Cathedral) School, Peterborough and the Secretary of State for Education. The accounting officer is also responsible for reporting to the Board of Governors any material weaknesses or breakdowns in internal control.
The information on governance included here supplements that described in the Governors' Report and in the Statement of Governors' Responsibilities. The Board of Governors has formally met 6 times during the year. Attendance during the year at meetings of the Board of Governors was as follows:
The School benefitted from strong stability within the board of trustees and as such retained a high level of experience and expertise. The school operates four sub-committees to support the key aspects of strategic planning (Admission, Finance, Curriculum and Personnel). All sub-committees report regularly to the full board meeting so that all Trustees are aware of all key areas of the school. School leaders provide strong data to Trustees prior to meetings so that effective scrutiny can take place within meetings. Statutory and non statutory reporting deadlines are reported in line with agreed workflows for each committee and the format of data presented regularly assessed.
The school actively manage potential conflicts of interest by completing annual governor declaration forms and raising it at the start of every governors meeting. The requirements set out by the ESFA on business and other interests are followed to ensure transparency.
There is a practising and qualified accountant on the board of governors who is responsible for the Audit function of governance and feedback to the Finance Committee at each meeting. He meets regularly with the CFO and examines aspects of the finance function for the School in detail, including the updating of the risk register.
An external review was carried out during 2023/24 by TIAA, which was an assurance review of the ESFA handbook and key financial systems. A report was published and scrutinised by the governor responsible for Audit, and presented to the Governors’ Finance Committee.
Rationale: The ESFA requires Trusts/ Academies to submit an annual Internal Scrutiny return, covering areas noted in the Academies Financial Handbook, primarily financial controls.
Scope: Payroll – authorisation process for: Starters & Leavers; Overtime; and Variations, Purchase to Pay – a high level review, Other Income (Education) – a high level review of processes underpinning receipt of such income and informing management.
The finance committee is a sub-committee of the main Board of Governors. Its purpose is to advise the Board of Governors on all matters regarding finance and property.
Attendance at meetings in the year was as follows:
As accounting officer the headteacher 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, as well as estates safety and management, achieved in return for the taxpayer resources received.
The accounting officer considers how the academy trust’s use of its resources has provided good value for money during each academic year, and reports to the Board of Governors where value for money can be improved, including the use of benchmarking data where available. The accounting officer for the academy trust has delivered improved value for money during the year by:
The Academy has continued to set challenging targets for all curriculum areas and individual students, using National benchmarks and data as a guide. A comprehensive tracking process is in place to monitor the students' progress.
The Learning Commission was further developed, providing a comprehensive programme involving staff and students who have researched new initiatives in teaching and learning, and developed a mentoring programme which was presented to the local Headteachers' conference.
The Board of Governors set a budget within its means, with expenditure within Government funding and other income available for the financial year.
The Board of Governors Finance Committee has received monthly budget and cash reports. Investments have been reviewed on a regular basis.
Staffing levels were reviewed and adjusted, as every year, to meet the needs of the curriculum for the current financial/academic year.
The Academy has appointed a Responsible Officer, internal auditors were appointed to undertake a series of additional checks across a range of financial accounting procedures to support the role of the Responsible Officer. The findings from this work were reported via the Responsible Officer to the Board of Governors' Audit Committee and no major issues were required to be highlighted from this work.
External auditors have recorded an unqualified audit opinion within these financial statements.
The Academy endeavours to achieve value for money when purchasing equipment and services. It employs independent procurement services for items such as cleaning and fuel, and uses the Local Authority as broker for insurance.
Tenders and estimates are sought for all purchases as follows:
Orders between £2,001 and £10,000
At least two written estimates or price-lists are obtained for all orders, to identify the best source of the goods/services.
Orders between £10,001 and £25,000
At least three written estimates are obtained for all orders, to identify the best source of the goods/services.
Orders between £25,001 and the Public Contracts Regulations (PCR) Threshold
At least three written quotations (preferably fixed price) are obtained using the open or Restricted Tender (or Negotiated Tender, where appropriate), process.
Orders over the Public Contracts Regulations (PCR) Threshold
Purchases over £189,330 (the threshold from January 2021, previously £181,302) fall under PCR procurement rules, which require advertising in Contracts Finder.
The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk of failure to achieve policies, aims and objectives. It can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an on-going process designed to identify and prioritise the risks to the achievement of academy trust policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically. The system of internal control has been in place in The King's (The Cathedral) School, Peterborough for the period 1 September 2023 to 31 August 2024 and up to the date of approval of the annual report and accounts.
The Board of Governors 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 Governors is of the view that there is a formal ongoing process for identifying, evaluating and managing the academy trust's significant risks that has been in place for the period 1 September 2023 to 31 August 2024 and up to the date of approval of the annual report and accounts. This process is regularly reviewed by the Board of Governors.
The academy trust's system of internal control is based on a framework of regular management information and administrative procedures including the segregation of duties and a system of delegation and accountability. In particular, it includes:
comprehensive budgeting and monitoring systems with an annual budget and periodic financial reports which are reviewed and agreed by the Board of Governors;
regular reviews by the finance committee of reports which indicate financial performance against the forecasts and of major purchase plans, capital works and expenditure programmes;
setting targets to measure financial and other performance;
clearly defined purchasing (asset purchase or capital investment) guidelines;
identification and management of risks.
The Board of Governors has decided:
to employ TIAA Ltd as internal auditor
The internal auditor's role includes giving advice on financial and other matters and performing a range of checks on the academy trust's financial and other systems. In particular, the checks carried out in the current period included:
Review of core processes for payroll, purchase to pay and sundry income streams.
The auditor reports to the Board of Governors through the Audit Committee on the operation of the systems of control and on the discharge of the financial responsibilities of the Board of Governors, and prepares an annual summary report to the committee outlining the areas reviewed, key findings, recommendations and conclusions to help the committee consider actions and assess year on year progress.
The Trustees have considered the need for a specific internal audit function and has decided not to appoint an internal auditor. However, the Trustees have appointed TIAA to perform the duties of a Responsible Officer ('RO'). The RO's role includes giving advice on financial matters and performing a range of checks on the academy trust's financial systems. On a regular basis, the RO reports to the governing body on the operation of the systems of control and on the discharge of the governing body's financial responsibilities.
During the year one RO report was produced and none of the action points were assigned to the highest priority category.
As accounting officer, the headteacher has responsibility for reviewing the effectiveness of the system of internal control. During the year in question the review has been informed by:
the work of the internal auditor;
the work of the external auditor;
the school resource management self-assessment tool;
the work of the executive managers within the academy trust who have responsibility for the development and maintenance of the internal control framework.
The accounting officer has been advised of the implications of the result of their review of the system of internal control by the internal auditor.
Based on the advice of the audit and risk committee and the accounting officer, the Board of Governors is of the opinion that the academy trust has an adequate and effective framework for governance, risk management and control.
Approved by order of the Board of Governors on 14 November 2024 and signed on its behalf by:
As accounting officer of The King's (The Cathedral) School, Peterborough, I have considered my responsibility to notify the academy trust Board of Governors and the Education and Skills Funding Agency (ESFA) of material irregularity, impropriety and non-compliance with terms and conditions of all funding, including for estates 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 2023, including responsibilities for estates safety and management.
I confirm that I and the academy trust's Board of Governors 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 2023.
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 Governors and ESFA.
The Governors (who act as trustees for The King's (The Cathedral) School, Peterborough and are also the directors of The King's (The Cathedral) School, Peterborough for the purposes of company law) are responsible for preparing the Governors' report and the accounts in accordance with the Academies Accounts Direction 2023 to 2024 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 Governors to prepare accounts for each financial year. Under company law, the Governors 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 Governors are required to:
select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP 2019 and the Academies Accounts Direction 2023 to 2024;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts; and
prepare the accounts on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The Governors 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 Governors 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 Governors 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 Governors on 14 November 2024 and signed on its behalf by:
Opinion
We have audited the accounts of The King's (The Cathedral) School, Peterborough (the 'charity') and its subsidiary for the year ended 31 August 2024 which comprise the statement of financial activities, the balance sheet, the 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 2023 to 2024 issued by the Education and Skills Funding Agency.
give a true and fair view of the state of the Group and Parent charitable company's affairs as at 31 August 2024 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 2023 to 2024.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 'Auditor's responsibilities for the audit of the accounts' section of our report. We are independent of the academy trust in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the Governors' 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 Governors 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 Governors are responsible for the other information contained within the annual report. Our opinion on the accounts does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the accounts themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
the information given in the Governors' report including the incorporated strategic report for the financial year for which the accounts are prepared is consistent with the accounts; and
the Governors' report including the incorporated strategic report has been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the academy trust, its subsidiary and its environment obtained in the course of the audit, we have not identified material misstatements in the Governors' report, including the incorporated strategic report.
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 Governors' remuneration specified by law are not made; or
As explained more fully in the statement of Governors' responsibilities, the Governors 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 Governors 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 Governors 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 Governors either intend to liquidate the charitable company, or have no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these accounts.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of senior leadership, Governors and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations including compliance with the Academies Accounts Direction 2023 to 2024 issued by the Education and Skills Funding Agency;
Performing audit work over the recognition of grant income and the allocation of expenditure to funds;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
In accordance with the terms of our engagement letter dated 30 August 2024 and further to the requirements of the Education and Skills Funding Agency (ESFA) as included in the Academies Accounts Direction 2023 to 2024, we have carried out an engagement to obtain limited assurance about whether the expenditure disbursed and income received by The King's (The Cathedral) School, Peterborough during the period 1 September 2023 to 31 August 2024 have been applied to the purposes identified by Parliament and the financial transactions conform to the authorities which govern them.
This report is made solely to The King's (The Cathedral) School, Peterborough and ESFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to the The King's (The Cathedral) School, Peterborough 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 The King's (The Cathedral) School, Peterborough and ESFA, for our work, for this report, or for the conclusion we have formed.
The accounting officer is responsible, under the requirements of The King's (The Cathedral) School, Peterborough’s funding agreement with the Secretary of State for Education dated 30 December 2010 (as amended by the deed of variation dated 15 January 2013) and the Academies Financial Handbook, extant from 1 September 2023, 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 2023 to 2024. 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 2023 to 31 August 2024 have not been applied to purposes intended by Parliament or that the financial transactions do not conform to the authorities which govern them.
We conducted our engagement in accordance with the Framework and Guide for External Auditors and Reporting Accountant of Academy Trusts issued by ESFA. We performed a limited assurance engagement as defined in our engagement letter.
The objective of a limited assurance engagement is to perform such procedures as to obtain information and explanations in order to provide us with sufficient appropriate evidence to express a negative conclusion on regularity.
A limited assurance engagement is more limited in scope than a reasonable assurance engagement and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in a reasonable assurance engagement. Accordingly, we do not express a positive opinion.
Our engagement includes examination, on a test basis, of evidence relevant to the regularity and propriety of the academy trust's income and expenditure.
The work undertaken to draw to our conclusion includes:
a review of the activities of the academy, by reference to sources of income and other information available to us;
sample testing of expenditure, including payroll;
a review of minutes of Governors’ meetings.
In the course of our work, nothing has come to our attention which suggests that in all material respects the expenditure disbursed and income received during the period 1 September 2023 to 31 August 2024 has not been applied to purposes intended by Parliament and the financial transactions do not conform to the authorities which govern them.
The accounts on pages 21 to 44 were approved by the Governors and authorised for issue on
A summary of the principal accounting policies adopted (which have been applied consistently, except where noted), judgements and key sources of estimation uncertainty, is set out below.
The accounts of the 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 2023 to 2024 issued by ESFA, the Charities Act 2011 and the Companies Act 2006.
The financial accounts are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound sterling.
The Governors 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 Governors have made 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.
All incoming resources are recognised when the academy trust has entitlement to the funds, the receipt is probable and the amount can be measured reliably.
Grants are included in the statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the balance sheet. Where income is received in advance of meeting any performance-related conditions there is not unconditional entitlement to the income and its recognition is deferred and included in creditors as deferred income until the performance-related conditions are met. Where entitlement occurs before income is received, the income is accrued.
General Annual Grant is recognised in full in the statement of financial activities in the period for which it is receivable, and any abatement in respect of the period is deducted from income and recognised as a liability.
Capital grants are recognised in full when there is an unconditional entitlement to the grant. Unspent amounts of capital grants are reflected in the balance sheet in the restricted fixed asset fund. Capital grants are recognised when there is entitlement and are not deferred over the life of the asset on which they are expended.
Donations are recognised on a receivable basis (where there are no performance-related conditions) where the receipt is probable and the amount can be reliably measured.
Other income, including the hire of facilities, is recognised in the period it is receivable and to the extent the academy trust has provided the goods or services.
Goods donated for resale are included at fair value, being the expected proceeds from sale less the expected costs of sale. If it is practical to assess the fair value at receipt, it is recognised in stock and ‘Income from other trading activities’. Upon sale, the value of the stock is charged against ‘Income from other trading activities’ and the proceeds are recognised as ‘Income from other trading activities’. Where it is impractical to fair value the items due to the volume of low value items they are not recognised in the accounts until they are sold. This income is recognised within ‘Income from other trading activities’.
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.
Legacy income
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
All resources expended are inclusive of irrecoverable VAT.
This includes all expenditure incurred by the academy trust to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
These are costs incurred on the academy trust's educational operations, including support costs and costs relating to the governance of the academy trust apportioned to charitable activities.
These include the costs attributable to the academy trust's compliance with constitutional and statutory requirements, including audit, strategic management, Governors' meetings and reimbursed expenses.
Assets costing £1,000 or more are capitalised as tangible fixed assets and are carried at cost, net of depreciation and any provision for impairment.
Where tangible fixed assets have been acquired with the aid of specific grants, either from the government or from the private sector, they are included in the balance sheet at cost and depreciated over their expected useful economic life. The related grants are credited to a restricted fixed asset fund in the statement of financial activities and carried forward in the balance sheet. Depreciation on such assets is charged to the restricted fixed asset fund in the statement of financial activities so as to reduce the fund over the useful economic life of the related asset on a basis consistent with the academy trust's depreciation policy. Where tangible fixed assets have been acquired with unrestricted funds, depreciation on such assets is charged to the unrestricted fund.
Depreciation is provided on all tangible fixed assets other than freehold land, at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life, as follows:
The depreciation policy in place for the buildings has been reviewed during the year with their now being component accounting in place. The useful life for each area of the building has been assessed and the depreciation charge has been adjusted to reflect this change in estimate.
Property introduced into the Academy Trust from the previous Voluntary Aided school has been transferred in at insurance value.
Furniture and equipment transferred into the Academy Trust from the previous Voluntary Aided school has been introduced into these accounts at a value equivalent to its estimated depreciated cost.
A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the statement of financial activities.
Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the academy trust anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods of services it must provide.
Rentals under operating leases are charged on a straight-line basis over the lease term.
Fixed asset investments are stated at market value.
The academy trust only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the academy trust and their measurement basis are as follows.
Trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments.
Cash at bank is classified as a basic financial instrument and is measured at face value.
Trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition.
Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument.
The academy trust is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the academy trust is potentially exempt from taxation in respect of income or capital gains received within categories covered by chapter 3 part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Retirement benefits to employees of the academy trust are provided by the Teachers' Pension Scheme ('TPS') and the Local Government Pension Scheme ('LGPS'). These are defined benefit schemes and the assets are held separately from those of the academy trust.
The TPS is an unfunded scheme and contributions are calculated to spread the cost of pensions over employees' working lives with the academy trust in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary based on quadrennial valuations using a prospective unit credit method. The TPS is an unfunded multi-employer scheme with no underlying assets to assign between employers. Consequently, the TPS is treated as a defined contribution scheme for accounting purposes and the contributions are recognised in the period to which they relate.
The LGPS is a funded multi-employer scheme and the assets are held separately from those of the academy trust in separate trustee administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit credit method and discounted at a rate equivalent to the current rate of return on a high-quality corporate bond of equivalent term and currency to the liabilities. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The amounts charged to net income or expenditure are the current service costs and the costs of scheme introductions, benefit changes, settlements and curtailments. They are included as part of staff costs as incurred. Net interest on the net defined benefit liability/asset is also recognised in the statement of financial activities and comprises the interest cost on the defined benefit obligation and interest income on the scheme assets, calculated by multiplying the fair value of the scheme assets at the beginning of the period by the rate used to discount the benefit obligations. The difference between the interest income on the scheme assets and the actual return on the scheme assets is recognised in other recognised gains and losses. Actuarial gains and losses are recognised immediately in other recognised gains and losses.
Unrestricted income funds represent those resources which may be used towards meeting any of the charitable objects of the academy trust at the discretion of the Governors.
Designated funds are where the Governors have ring fenced unrestricted income for specific projects.
Restricted fixed asset funds are resources which are to be applied to specific capital purposes imposed by the Education and Skills Funding Agency/Department for Education/other funders where the asset acquired or created is held for a specific purpose.
Restricted general funds comprise all other restricted funds received and include grants from the Education and Skills Funding Agency/Department for Education.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the Academy Trust.
Accounting estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The academy trust makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
The present value of the Local Government Pension Scheme defined benefit liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost or income for pensions include the discount rate. Any changes in these assumptions, which are disclosed in note 25, will impact on 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 2022 has been used by the actuary in valuing the pensions liability at 31 August 2024. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of the pension liability.
The academy trust paid 1 severance payments in the year, disclosed in the following bands:
The key management personnel of the academy trust comprise the Governors and the senior management team as listed on page 1. The total amount of employee benefits (including employer pension contributions and employer national insurance contributions) received by key management personnel for their services to the academy trust was £793,320 (2023: £741,247).
One or more Governors has been paid remuneration or has received other benefits from an employment with the academy trust. The headteacher and other staff Governors only receive remuneration in respect of services they provide undertaking the roles of headteacher and staff members under their contracts of employment, and not in respect of their services as Governors. Other Governors did not receive any payments, other than expenses, from the academy trust in respect of their role as Governors.
The value of Governors' remuneration and other benefits was as follows:
Mr J Harrison (headteacher and governor)
Remuneration £115,000 - £120,000 (2023: £105,000 - £110,000)
Employer’s pension contributions £30,000 - £35,000 (2023: £25,000 - £30,000)
Mrs J L Thurlow (staff governor)
Remuneration £40,000 - £45,000 (2023: £30,000 - £35,000)
Employer’s pension contributions £10,000 - £15,000 (2023: £5,000 - £10,000)
Mrs S Stimson (staff governor)
Remuneration £50,000 - £55,000 (2023: £45,000 - £50,000)
Employer’s pension contributions £10,000 - £15,000 (2023: £10,000 - £15,000)
Governors did not receive any remuneration or expenses in respect of their role as Governor.
In addition to the above the school employed 3 members of staff (2023: 3) during the year who are related to the Governors. The total remuneration paid was £96,270 (2023: £91,766).
In accordance with normal commercial practice, the academy trust has purchased insurance to protect Governors and officers from claims arising from negligent acts, errors or omissions occurring whilst on academy trust business. The insurance provides cover up to £5,000,000 on any one claim. The cost of this insurance is included in the total insurance cost.
The Academy owns the freehold of the property noted above. The property introduced into the Academy Trust from the previous Voluntary Aided School has been transferred in at insurance value, and retained at that value.
All investments held were donated to the Academy.
Schola Regia Trading Limited is a wholly owned subsidiary of The King's (The Cathedral) School, Peterborough, and is incorporated in England and Wales. The subsidiary is dormant. The Charity owns the entire issued share capital of 2 ordinary shares at £1 each.
Deferred income relates to trip and grant income which was received in advance.
The specific purposes for which the funds are to be applied are as follows:
The transfers represent expenditure out of the specific capital funds on relevant expenditure.
The restricted grant income in the year all relates to the provision of education for the children of the Academy. Under the funding agreement with the Secretary of State, the academy trust was not subject to a limit on the amount of GAG that it could carry forward at 31 August 2024. Other restricted funds relate to the prize funds which represents donations to fund annual prizes presented to pupils.
The property maintenance fund will be used to fund major maintenance projects that cannot be funded out of general income.
The capital development fund has been set aside to fund major capital improvements to the school's premises.
Other designated funds represent other general donations and long term balances within the trips, clubs and activities of the school.
The School has been notified of an annual cost of £5,312 in respect of pension strain for a previous employee. It is understood that the School will be liable until the later date of the death of the ex-employee or the spouse. In the event of the ex-employee passing first, the liability would be reduced to 50% for the remaining period.
At the time of approving these accounts, the Trustees are seeking to obtain further information from the scheme to determine the age of individual concerned. On the basis that information is not available the School is unable to quantify the full future cost and therefore no liability has been included in these accounts in respect of this.
Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up while he or she is a member, or within one year after he or she ceases to be a member, such amount as may be required, not exceeding £10 for the debts and liabilities contracted before he or she ceases to be a member.
The 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 Cambridgeshire County Council. Both are multi-employer defined benefit schemes.
The latest actuarial valuation of the TPS related to the period ended 31 March 2020, and that of the LGPS related to the period ended 31 March 2022.
Contributions amounting to £Nil were payable to the schemes at 31 August 2024 (2023: £113,982) and are included within creditors.
The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pension Scheme Regulations 2014. Membership is automatic for teachers in academy trusts. All teachers have the option to opt out of the TPS following enrolment.
The TPS is an unfunded scheme to which both the member and employer makes contributions, as a percentage of salary. These contributions are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.
The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to ensure scheme costs are recognised and managed appropriately and the review specifies 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 2020. The valuation report was published by the Department for Education on 27 October 2023, with the SCAPE rate, set by HMT, applying a notional investment return based on 1.7% above the rate of CPI. The key elements of the valuation outcome are:
Employer contribution rates set at 28.68% of pensionable pay (including a 0.08% administration levy). This is an increase of 5% in employer contributions and the cost control result is such that no change in member benefits is needed.
Total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service to the effective date of £262,000 million and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £222,200 million, giving a notional past service deficit of £39,800 million.
The result of this valuation will be implemented from 1 April 2024.The next valuation result is due to be implemented from 1 April 2028.
The employer's pension costs paid to the TPS in the period amounted to £860,186 (2023: £749,719).
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 is unable to identify its share of the underlying assets and liabilities of the plan. Accordingly, the academy trust has taken advantage of the exemption in FRS 102 and has has accounted for its contributions to the scheme as if it were a defined contribution scheme. The academy trust has set out above the information available on the scheme.
The LGPS is a funded defined benefit pension scheme, with the assets held in separate trustee-administered funds. The total contributions are as noted below. The agreed contribution rates for future years are 18.9% for employers and 5.5% to 6.8% for employees.
Parliament has agreed, at the request of the Secretary of State for Education, to a guarantee that, in the event of academy closure, outstanding Local Government Pension Scheme liabilities would be met by the Department for Education. The guarantee came into force on 18 July 2013 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 at the year end to the value of £1,142,000 (2023: £715,000). The actuaries have undertaken an asset ceiling calculation to determine how much of the asset is expected to materialise. The actuaries consider whether the period being considered for recognition of the potential asset should the in perpetuity or over the estimated future working life of members in the scheme and the trustees consider that using the ‘future working life’ period more appropriately reflects the amount that it is reasonable to recognise in respect of the foreseeable future. On the basis that a minimum funding requirement does exist, these calculations indicate that only £149,000 (2023: £189,000) of the overall surplus is likely to result in either a refund of contributions or a reduction in future contributions in the future.
Scheme liabilities would have been affected by changes in assumptions as follows:
Owing to the nature of the academy trust's operations and the composition of the Board of Governors being drawn from local public and private sector organisations, transactions may take place with organisations in which the academy trust has an interest. All transactions involving such organisations are conducted at arm's length and in accordance with the academy trust's financial regulations and normal procurement procedures. The following related party transaction took place in the period of account.
During the year the Academy received £6,000 (2023 - £35,000) and were charged expenses of £467 (2023 - £1,610) from The Chapter of Peterborough Cathedral. As referred to in the Governors' Report, nine of the Governors are appointed by The Dean and Chapter of Peterborough Cathedral and one by the Diocese of Peterborough. There was no amount outstanding at the year end.
Some of the Governors have children who are pupils at the Academy, 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 Academy.