Company registration number 07534695 (England and Wales)
FOSSE WAY ACADEMY LTD
(A COMPANY LIMITED BY GUARANTEE)
ANNUAL REPORT AND ACCOUNTS
FOR THE YEAR ENDED
31 AUGUST 2024
31 August 2024
FOSSE WAY ACADEMY LTD
CONTENTS
Page
Reference and administrative details
1
Trustees' report
2 - 9
Governance statement
10 - 17
Statement on regularity, propriety and compliance
18
Statement of trustees' responsibilities
19
Independent auditor's report on the accounts
20 - 22
Independent reporting accountant's report on regularity
23 - 24
Statement of financial activities including income and expenditure account
25 - 26
Balance sheet
27
Statement of cash flows
28
Notes to the accounts including accounting policies
29 - 47
FOSSE WAY ACADEMY LTD
REFERENCE AND ADMINISTRATIVE DETAILS
- 1 -
Members
Mrs T Bellamy
Mrs H Pennington
Miss C Caldwell
Mrs J Manning
Mrs D Bulat
Trustees
Mr R Cowling (Headteacher)
Mrs J Manning (Resigned 11 December 2023)
Mr A Coupland (Resigned 31 August 2024)
Mrs H Pennington (Chair) (Resigned 11 September 2023)
Mrs D Bulat (Resigned 12 March 2024)
Mr G Speed (Resigned 25 November 2024)
Miss C Caldwell
Mr R Kay
Mrs N Cotton
Mrs J Mackown (Resigned 18 March 2024)
Mrs A Thomas
Mr A Collins
Ms D Gallagher (Appointed 20 May 2024)
Mr A Moat (Appointed 15 July 2024)
Senior management team
- Headteacher
Mr R Cowling
- Deputy Headteacher
Mr A Coupland
- Finance Manager
Mr M O'Halloran
- Accounting Officer
Mr R Cowling
Company registration number
07534695 (England and Wales)
Registered office
Ash Grove
North Hykeham
Lincoln
LN6 8DU
United Kingdom
Independent auditor
Azets Audit Services
Westpoint
Lynch Wood
Peterborough
Cambridgeshire
PE2 6FZ
United Kingdom
Bankers
Lloyds Plc
High Street
Lincoln
LN5 8AD
United Kingdom
FOSSE WAY ACADEMY LTD
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 2 -

The trustees 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 trust operates a Nursery for up to 78 part-time pupils (39 pupils full time equivalent) and a primary academy for pupils aged 4 to 11 serving a catchment area in North Hykeham, Lincoln. It has a pupil capacity of 525 and including Nursery, had a roll of 527 in the school census on 1 October 2023. The trust also operates its own term-time childcare services for parents before and after school.

Structure, governance and management
Constitution

The academy trust is a company limited by guarantee and an exempt charity. The charitable company's memorandum and articles of association are the primary governing documents of the academy trust.

The trustees of Fosse Way Academy Ltd are also the directors of the charitable company for the purposes of company law. The charitable company is known as Fosse Way Academy Limited. Details of the trustees who served during the year 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.

Trustees' indemnities

The academy has insurance cover of £5m for trustee’s liabilities.

Method of recruitment and appointment or election of trustees

The Members may appoint up to 10 Governors.

 

The Members may appoint Staff Governors through such process as they may determine, provided that the total number of Governors (including the Principal) who are employees of the Academy Trust does not exceed one third of the total number of Governors.

 

The LA may appoint the LA Governor.

 

The Principal shall be treated for all purposes as being an ex officio Governor.

 

Subject to article 57, the Parent Governors shall be elected by parents of registered pupils at the Academy. A Parent Governor must be a parent of a pupil at the Academy at the time when s/he is elected.

 

The Governing Body shall make all necessary arrangements for, and determine all other matters relating to, an election of Parent Governors, including any question of whether a person is a parent of a registered pupil at the Academy. Any election of Parent Governors which is contested shall be held by secret ballot.

 

The arrangements made for the election of a Parent Governor shall provide for every person who is entitled to vote in the election to have an opportunity to do so by post or, if he prefers, by having his ballot paper returned to the Academy Trust by a registered pupil at the Academy.

 

Where a vacancy for a Parent Governor is required to be filled by election, the Governing Body shall take such steps as are reasonably practical to secure that every person who is known to them to be a parent of a registered pupil at the Academy is informed of the vacancy and that it is required to be filled by election, informed that he is entitled to stand as a candidate, and vote at the election, and given an opportunity to do so.

FOSSE WAY ACADEMY LTD
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 3 -

Article 57 states the number of Parent Governors required shall be made up by Parent Governors appointed by the Governing Body if the number of parents standing for election is less than the number of vacancies.

 

If appointing a Parent Governor the Governing Body shall appoint a person who is the parent of a registered pupil at the Academy, or where it is not reasonably practical to do so, a person who is the parent of a child of compulsory school age.

 

Co-opted Governors

The Governors may appoint up to 3 Co-opted Governors. A ‘Co-opted Governor’ means a person who is appointed to be a Governor by being Co-opted by Governors who have not themselves been so appointed. The Governors may not co-opt an employee of the Academy Trust as a Co-opted Governor if thereby the number of Governors who are employees of the Academy Trust would exceed one third of the total number of Governors (including the Principal).

 

Policies and procedures adopted for the induction and training of trustees

Any newly appointed Trustees or those already in post are able to undertake any training opportunities required for them to be effective in fulfilling their responsibilities as a member of the Governing Body. New Governors are given a Governors' Handbook which outlines basic roles and responsibilities. As Gold Members of the National Governors Association, all new governors receive a Welcome to Governance handbook and the opportunity to undertake courses, have access to legal support and up to date information and debate amongst governors. Regional meetings occur during the year to which governors are invited. The Governing Body also subscribe to The Key for Governors.

 

Induction is done on an informal basis and tailored to individual needs as only a few new governors are expected on a yearly or bi-annual basis.

FOSSE WAY ACADEMY LTD
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 4 -
Organisational structure

organisational structure consists of:

 

The aim of the structure is to devolve responsibility and encourage decision making at all levels.

 

The Board of Directors is responsible for setting general policy, adopting an annual development plan and agreeing the budget. They monitor the Academy by the use of budgets and making major decisions about the direction of the Academy, capital expenditure and staff appointments.

 

The responsibility for the following is covered by the full board. Members of the board with relevant skills are allocated to provide closer scrutiny through regular monitoring meetings:

 

- to review attainment and progress of all pupils

- to review the school's curriculum policy

- to consider the school's internal/​external data

- to undertake required work on the curriculum and assessment parts of post Ofsted Action plans and/​or the School

 

- To establish an effective and regular internal review of Governance and the layers of Governance.

- To develop the core elements of governor financial oversight to ensure financial efficiency and robust financial systems, and to plan effectively for forecasted lower pupil numbers.

- To ensure executive leaders have established and are evaluating the impact of performance management processes for all members of staff relating to the School Improvement Priority 5, and stakeholder views.

 

A formal Finance, Audit and Risk sub-committee oversees:

 

- to ensure that the school's Finance Policy and procedures are reviewed and updated annually to ensure all parties comply with the Finance Policy

- review budget spending and ensure that spending is achieving the strategic aims of the Academy

- to ensure that the school's Health and Safety policy is reviewed and updated and all parties comply with it

- to ensure that the Health and Safety audit is undertaken in accordance with policies and that any findings are acted upon

- to advise the full Governing Body on priorities for the maintenance and development of the school premises

- To ensure that the Risk Register is reviewed on a regular basis or as required

 

The Board of Directors is responsible for keeping proper accounting records which disclose with reasonable accuracy the financial position of the charitable company and which enable them to ensure that the financial statements 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 Board of Directors confirms that so far as they are aware, there is no relevant audit information of which the charitable company's auditors are unaware. They have taken all the steps that they ought to have taken as Directors in order to make themselves aware of any relevant audit information and to establish that the charitable company's auditors are aware of that information.

 

The Head Teacher is responsible for the authorisation of spending within agreed budgets and the appointment of staff.

 

The Senior Leadership Team includes the three team leaders (Early Years, Years 1 and 2, Years 3 and 4 (also the Assistant Headteacher) and Years 5 and 6), the Deputy Head and Head Teacher. These leaders are responsible for the day to day operation of the Academy, in particular organising the teaching and support staff, as well as helping to set the strategic direction of the Academy.

FOSSE WAY ACADEMY LTD
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 5 -
Arrangements for setting pay and remuneration of key management personnel

Fosse Way Academy has set a Pay Policy for the remuneration of all teaching personnel in school, including members of the Senior Leadership Team. The main points of this policy are:

 

The Governing Body will ensure that each teacher’s salary is reviewed annually, with effect from 1 September and no later than 31 October each year, and that all teachers are given a written statement setting out their salary and any other financial benefits to which they are entitled.

 

Reviews may take place at other times of the year to reflect any changes in circumstances or job description that lead to a change in the basis for calculating an individual’s pay. A written statement will be given after any review and where applicable will give information about the basis on which it was made.

 

Where a pay determination leads or may lead to the start of a period of safeguarding, the Governing Body will give the required notification as soon as possible and no later than one month after the date of the determination.

Related parties and other connected charities and organisations

Fosse Way Academy is part of the North Hykeham Learning Network; a group of 7 local schools who collaborate on issues related to school improvement issues and staff development. We also work in partnership with Bishop Grosseteste Teaching University and the LEAD Equate Teaching School Hub to develop new and existing teachers. We use the services of Adrian Francis, an independent educational consultant, in the role of School Improvement Partner and for overseeing the Headteacher’s performance management process. We are a Computing at School hub, leading computing training for colleagues from other schools in the local area.

Objectives and activities
Objects and aims

The principle objective and activity of Fosse Way Academy is to provide a good education to children of different abilities between the ages of 3 and 11.

 

Fosse Way is a large popular primary school with an admission number of 75 per year. It has close links with other schools, pre-schools and local groups.

 

The pupils are encouraged to strive for excellence, reach their potential and become well rounded confident citizens.

 

Fosse Way is a 'Computing At School Hub School', offering training and support for teaching colleagues in all aspects of educational ICT. Due to our commitment to the use of technology to support education, the Academy also employs an ICT Leader who is a qualified CEOP Ambassador, Apple Teacher and CAS Master Teacher.

 

The main objectives of the Academy in the year ending 31 August 2024:

FOSSE WAY ACADEMY LTD
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 6 -
Objectives, strategies and activities

The Academy's main strategy is to provide the best possible opportunities for all members of the school community.

 

The Academy’s Vision states:

Fosse Way Academy is a special place to grow and learn and we all take great pride in being part of it. Children are happy to be here; motivated to do well by caring, inspirational teachers and engaged in our rich and creative curriculum. Our stimulating and nurturing environment supports learning, allowing children to flourish.

 

Children in our school will have a love of reading, a love of art, a love of learning, a love of sport. They will make mistakes without the fear of being wrong, secure in the knowledge that this is how real learning happens.

 

Before leaving us, Fosse Way children will have grown something from a seed, getting their hands dirty in the soil. They will have received applause after performing in front of a crowd. They will have tasted food cooked by their own hands. They will have taken part in democracy and developed pride in their community. Our children will have shown respect for all and spoken out at injustice. They will have asked a million questions, and have a million more to ask. They will have been a good friend, a good listener, a good role model.

 

Our children will take these experiences and values with them out into the world, ready to make it a better place to be. Our children will be ready to make the best of themselves, ready to fulfil their potential.

 

Our children will take these experiences and values with them out into the world, ready to make it a better place to be. Our children will be ready to make the best of themselves, ready to fulfil their potential.

Activities to support this Vision include:

Public benefit

In setting our objectives and planning our activities, the trustees have carefully considered the Charity Commission’s general guidance on public benefit.

Strategic report
Achievements and performance

Since conversion the Academy continues to set high targets for performance.

 

Our latest Ofsted grading (March 2023) determines that the school is good.

 

The Academy achieved Level 5, the highest possible grading, in the Computing Quality Framework’s audit of our computing curriculum – the only primary school in the country to do so.

 

The Academy has established ‘The Nest’ - a pastoral support room with 3 members of staff trained to deliver interventions to enable pupils to moderate/understand their own behaviour, communication and emotions.

 

FOSSE WAY ACADEMY LTD
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 7 -
Key performance indicators

A very effective tracking programme monitors progress and tracks pupils towards their challenging end of Key Stage 2 targets.

 

To ensure high standards are maintained and further improved the Academy has a comprehensive 2 Year Improvement Plan based on audit and evaluation of needs. This plan included the following items for the period 2023/​24:

 

In July 2024, the school’s results were as follows:

 

Y6 Teacher Assessed Writing – Expected Standard or above - 67%

Y6 SATs Reading – Expected Standard or above – 83%

Y6 SATs Maths – Expected Standard or above – 68%

Y6 SATs Grammar, Punctuation & Spelling – Expected Standard or above – 76%

 

Y2 Teacher Assessed Writing – Expected Standard or above - 49%

Y2 Teacher Assessed Reading – Expected Standard or above - 56%

Y2 Teacher Assessed Maths – Expected Standard or above - 68%

 

Y1 Phonics Screening Check – 83%

Y2 Phonics Screening Check – 93%

 

Attendance: 95.0%

Going concern

After making appropriate enquiries, the board of trustees has a reasonable expectation that the academy trust has adequate resources to continue in operational existence for the foreseeable future. For this reason, the board of trustees continues to adopt the going concern basis in preparing the accounts. Further details regarding the adoption of the going concern basis can be found in the statement of accounting policies.

Financial review

The majority of the academy's income is obtained from the Education and Skills Funding Agency (ESFA) in the form of recurrent grants, the use of which is restricted to particular purposes.  The grants received from the ESFA during the year ended 31 August 2024 and the associated expenditure are shown in restricted funds in the Statement of Financial Activities.

 

During the year ended 31 August 2024 the Academy received total funding of £2,993,714 compared to total resources expended of £3,258,116 to give a deficit for the year of £264,402.

 

The total accumulated reserves of the Academy at 31 August 2024 were £2,925,066.  The amount of restricted funds at the year end, excluding the restricted fixed asset fund and pension reserve, amounted to £0.

FOSSE WAY ACADEMY LTD
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 8 -
Reserves policy

It is the policy of the Academy that funds which have not been designated for a specific use should be maintained at a level equivalent to more than 5% of income but less than 20%. The Governors consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the academy’s current activities while consideration is given to ways in which additional funds may be raised. We acknowledge that this level of reserves has not been maintained throughout this period due to: two one-off payments relating to staffing, planned capital expenditure and the school’s proportion of the teachers’ pay award. In preparation for the academic year 2024/25, the school undertook a restructuring of the staff body and we now anticipate a return to reserves within our policy guidelines.

 

The Academy is confident that it will meet the required pension contributions from its projected income without significantly impacting on its planned level of charitable activity. It continues to calculate its ‘free’ or general unrestricted reserves without setting aside designated reserves to cover the pension liability.

 

The Academy’s non-teaching staff are entitled to membership of the Local Government Pension Scheme. The Academy share of the Scheme’s Assets is currently assessed to be less than its liabilities and consequently the balance sheet shows a £nil balance. However , the deficit does not mean that an immediate liability for this amount crystalises. The contribution rate to reduce the liability is calculated by an independent Actuary and is reported within the notes to the financial statements.

Investment policy

It is the Academy policy to review current investment products for their suitability to see if a better return can be made of significant cash balances. However, consideration should only be given to risk-free and immediately accessible accounts. Interest rates must be reviewed annually and compared with other products that are available. The Governing Body must approve all accounts and investments.

Principal risks and uncertainties

The Academy has an up to date risk register which details the main risks facing the Academy and the related controls in place to mitigate such risks. Internal control systems and exposures to risks are considered on a regular basis by the Governing Body.

 

The principal risk factors that affect the Academy and the strategies in place to mitigate these risks are detailed below:

1. Government funding

 

The Academy has an extensive reliance on continued government funding through the Education and Skills Funding Agency (ESFA) and the Local Authority. This is considered to be a principal risk to the Academy as without this funding the Academy would not be able to continue as a going concern.

 

The academy strives to effectively manage these limited funds in the following ways:

 

We also strive to generate additional funds, when possible, through lettings, fundraising and project bids.

 

2. Pension liabilities

 

The Academy needs to ensure that it can fund its pension liabilities as any shortfall could have an impact on long term financial stability. In order to manage this risk, the Governing Body receive regular advice from the pension Actuary including updates of the position of the pension deficit which allows them to make appropriate contributions to ensure the deficit does not become unmanageable.

FOSSE WAY ACADEMY LTD
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 9 -

3. Pupil Strategy

 

The risk of falling pupil numbers across the Academy is mitigated by:

 

By implementing the above the Academy is in a better position to keep pupil numbers at a sustainable level to support effective teaching and learning.

 

The Governing Body considers that the Academy exposure to financial risks including credit, cash flow and liquidity risk is low.

Fundraising

The Academy is compliant with the recognised standards of fundraising set out in the Code of Fundraising Practice. Fosse Way Academy does not use professional fundraisers and there have been no complaints received by the Academy about fund raising activities carried out by the Academy in the year.

 

Plans for future periods

Fosse Way Academy Limited will continue to strive and improve the levels of performance of its pupils at all levels and will continue is efforts to ensure successful transition to senior school.

 

We have plans for future improvements to the Academy which include:

Auditor

In so far as the trustees are aware:

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

- the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

A resolution proposing that Azets Audit Services be reappointed as auditor of the charitable company will be put to the members.

The trustees' report, incorporating a strategic report, was approved by order of the board of trustees, as the company directors, on 16 December 2024 and signed on its behalf by:

Miss C Caldwell
FOSSE WAY ACADEMY LTD
GOVERNANCE STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024
- 10 -
Scope of responsibility

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

The board of trustees has delegated the day-to-day responsibility to the principal, 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 Fosse Way Academy Ltd and the Secretary of State for Education. The accounting officer is also responsible for reporting to the board of trustees any material weaknesses or breakdowns in internal control.

Governance

The information on governance included here supplements that described in the Trustees' Report and in the Statement of Trustees' Responsibilities. The board of trustees has formally met 6 times during the year. Attendance during the year at meetings of the board of trustees was as follows:

Trustees
Meetings attended
Out of possible
Mr R Cowling (Headteacher)
6
6
Mrs J Manning (Resigned 11 December 2023)
2
2
Mr A Coupland (Resigned 31 August 2024)
4
6
Mrs H Pennington (Chair) (Resigned 11 September 2023)
0
1
Mrs D Bulat (Resigned 12 March 2024)
1
3
Mr G Speed (Resigned 25 November 2024)
4
6
Miss C Caldwell
6
6
Mr R Kay
6
6
Mrs N Cotton
6
6
Mrs J Mackown (Resigned 18 March 2024)
1
3
Mrs A Thomas
6
6
Mr A Collins
2
2
Ms D Gallagher (Appointed 20 May 2024)
2
2
Mr A Moat (Appointed 15 July 2024)
1
1

During the year 2023/24, the following changes took place:

Helen Pennington resigned as Chair of the Governing Body and Catherine Caldwell became Chair. Mr Rob Kay became Vice Chair of the Governing Body and Chair of the Finance Committee.

 

Governing Body Action Plan 2023-2024

 

Aspect of Further Improvement Role of Governance: Ensuring clarity of vision, ethos and strategic direction

 

  1. To establish an effective and regular internal review of Governance and the layers of Governance.

 

Evidence used to establish this aspect for further improvement:

 

FOSSE WAY ACADEMY LTD
GOVERNANCE STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 11 -

Aspect of Further Improvement   Role of Governance: Overseeing the financial performance of the school and making sure that its money is well spent.

 

2. To develop the core elements of governor financial oversight to ensure financial efficiency and robust financial systems, and to plan effectively for forecasted  lower pupil numbers.

 

Evidence used to establish this aspect for further improvement: 

 

Aspect of Further Improvement Role of Governance: Holding executive leaders to account for the educational performance of the school and its pupils, and the performance management of staff.

 

3. To ensure executive leaders have established and are evaluating the impact of performance management processes for all members of staff relating to the School Improvement Priority 5, and Stakeholder views.

 

Evidence used to establish this aspect for further improvement:

Conflicts of interest

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.

Governance reviews

1. Conducting a Governance Self-Review

2. Skills Audit

3. Reviewing Governance Policies and Processes

FOSSE WAY ACADEMY LTD
GOVERNANCE STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 12 -

4. Benchmarking Against Best Practice

5. Gathering Stakeholder Feedback

6. Action Planning

7. Periodic Monitoring of Progress

By using internal resources and recognised best practices, the Governing Body conducts a robust self-review of its governance and strategically plans for sustained improvement without the need for external reviewers.

The finance and general purposes committee is a sub-committee of the main board of trustees. Its purpose is to advise the board of trustees on all matters regarding finance.

Attendance at meetings in the year was as follows:

Trustees
Meetings attended
Out of possible
Mr R Cowling (Headteacher)
3
3
Mr G Speed (Resigned 25 November 2024)
0
3
Miss C Caldwell
3
3
Mr R Kay
3
3
Mrs A Thomas
3
3
Mr A Collins
1
3
Ms D Gallagher (Appointed 20 May 2024)
1
1
Mr A Moat (Appointed 15 July 2024)
1
1
FOSSE WAY ACADEMY LTD
GOVERNANCE STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 13 -
Review of value for money

As accounting officer the principal has responsibility for ensuring that the academy trust delivers good value in the use of public resources. The accounting officer understands that value for money refers to the educational and wider societal outcomes achieved in return for the taxpayer resources received.

 

The accounting officer considers how the academy trust’s use of its resources has provided good value for money during each academic year, and reports to the board of trustees where value for money can be improved, including the use of benchmarking data where available. The accounting officer for the academy trust has delivered improved value for money during the year by:

 

The Trustees and Academy Leaders effectively deploy staff to provide the best value in terms of quality of teaching and learning, adult-pupil ratio and curriculum management. Performance related pay for teachers is managed through our appraisal process. We have deployed Teaching Assistant support for children who have very specialised needs and have benefited greatly from the targeted support of experienced staff. The children that this support has focused upon have been able to experience a well-balanced curriculum that is pertinent to their individual needs and made progress across different areas of the curriculum because of this support.

 

The Trustees and Academy Leaders have reviewed and sought to renegotiate existing maintenance and service contracts. This has led to a reduction in costs in some areas or improved services for similar costs.

 

The Academy continues to work with other schools as part of the Hykeham Learning Network and as part of Peer Review. This allows the Academy to continue to build upon and strengthen partnerships with our local schools and collaborate together, identifying possible products and services that could be procured across the schools and reduce overall costs and/​​or negotiate more favorable rates and ensure best value.

 

The governing body is accountable for the way in which the school’s resources are allocated to meet the objectives set out in the school’s development plans.

 

Governors secure the best possible outcome for pupils, in the most efficient and effective way, at a reasonable cost. This leads to continuous improvement in the school’s achievements and services.

 

Governors apply the four principles of best value:

 

The Governors’ Approach

The Governors and school managers apply the principles of best value when making decisions about:

FOSSE WAY ACADEMY LTD
GOVERNANCE STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 14 -

Governors, and the school managers:

Challenge

Consult

Compare

Compete

 

This applies in particular to:

 

Governors and school managers:

 

The pursuit of minor improvements or savings is not cost effective if the administration involves substantial time or costs. Time wasted on minor improvements or savings can also distract management from more important or valuable areas.

 

Staffing

Governors and school managers deploy staff to provide best value in terms of quality of teaching, quality of learning, adult-pupil ratio, specialist provision, and curriculum management.

 

Use of Premises

Governors and school managers consider the allocation and use of teaching areas, support areas and communal areas, to provide the best environment for teaching and learning, for support services, and for communal access to central resources, e.g. the hall for sports coaching or community fundraising events.

 

Use of Resources

Governors and school managers deploy equipment, materials and services to provide pupils and staff with resources which support the quality of teaching and quality of learning.

 

Teaching

Governors and school managers review the quality of curriculum provision and quality of teaching, to provide parents and pupils with:

 

Learning

Governors and school managers review the quality of children’s learning, by cohort, class and group, to provide teaching which enables children to achieve nationally expected progress, e.g. setting and reviewing of annual pupil achievement targets and striving to improve on or maintain previous years exam results and attendance.

FOSSE WAY ACADEMY LTD
GOVERNANCE STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 15 -

Purchasing

Governors and school managers develop procedures for assessing need and obtaining goods and services which provide ‘best value’ in terms of suitability, efficiency, time, and cost. Measures already in place include:

 

Pupils’ Welfare

Governors and school managers review the quality of the school environment and the school ethos in order to provide a supportive environment conducive to learning and recreation.

 

Health & Safety

Governors and school managers review the quality of the school environment and equipment, carrying out risk assessments where appropriate, in order to provide a safe working environment for pupils, staff and visitors.

 

Monitoring

These areas have been monitored for best value by:

1. In-house monitoring by the Headteacher, Deputy Headteacher, Team Leaders and Literacy/​Numeracy Leaders, e.g. classroom practice, work sampling, pupil conversations, data tracking.

2. Termly target setting/​reviewing meetings between the Headteacher and Literacy/​Numeracy/​Team Leaders.

3. Staff Appraisal.

4. Annual Budget Planning.

5. Headteacher’s/SBM’s regular finance review.

6. Visits by external, independent Accountants via the auditing process, and by an external, independent Responsible Officer.

7. Analysis of school pupil performance data against similar/​all national schools and analysis of financial data against bench mark data for similar/​all national schools.

8. Analysis of DfE and Ofsted pupil performance data.

9. Ofsted Inspection reports.

10. Governors’ termly committee meetings.

11. Visits by an external, independent consultant employed in the role of School Improvement Advisor.

12. Analysis of the school’s attendance data compared to local and national figures, particularly for key vulnerable groups.

 

In the next three years, the Headteacher will:

 

The Governing Body is responsible for making sure that the estate is safe and well-maintained.

 

The Governing Body delegates operational matters.

FOSSE WAY ACADEMY LTD
GOVERNANCE STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 16 -

School staff are responsible for:

 

The Governing Body retains oversight responsibility through a link governor

 

The Governing Body meets its legal responsibilities by:

The purpose of the system of internal control
Capacity to handle risk

The board of trustees has reviewed the key risks to which the academy trust is exposed together with the operating, financial and compliance controls that have been implemented to mitigate those risks. The board of trustees is of the view that there is a formal ongoing process for identifying, evaluating and managing the academy trust's significant risks that has been in place for the period 1 September 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 trustees.

The risk and control framework

As the Board of Directors, we acknowledge we have overall responsibility for ensuring that Fosse Way Academy has an effective and appropriate system of control, financial and otherwise. We are also responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Academy and enable us to ensure the financial statements comply with the Companies Act. We also acknowledge responsibility for safeguarding the assets of the Academy and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities and to provide reasonable assurance that:

 

The academy trust's system of internal financial control is based on a framework of regular management information and administrative procedures including the segregation of duties and a system of delegation and accountability. In particular it includes:

The board of trustees has considered the need for a specific internal audit function and has decided to appoint Bishop Fleming Audit Services to perform additional checks.

FOSSE WAY ACADEMY LTD
GOVERNANCE STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 17 -

The auditor's role includes giving advice on financial matters and performing a range of checks on the academy trust's financial systems. In particular the checks carried out in the current period included reviews of:

The auditor reports to the board of trustees on the operation of the systems of control and on the discharge of the financial responsibilities of the board of trustees.

Review of effectiveness

As accounting officer the principal 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 finance and general purposes committee to ensure continuous improvement of the system is in place.

Approved by order of the board of trustees on 16 December 2024 and signed on its behalf by:

Mr R Cowling
Miss C Caldwell
Headteacher
FOSSE WAY ACADEMY LTD
STATEMENT OF REGULARITY, PROPRIETY AND COMPLIANCE
FOR THE YEAR ENDED 31 AUGUST 2024
- 18 -

As accounting officer of Fosse Way Academy Ltd, I have considered my responsibility to notify the academy trust board of trustees and the Education and Skills Funding Agency (ESFA) of material irregularity, impropriety and non-compliance with terms and conditions of all funding, including for estates 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 trustees are able to identify any material irregular or improper use of funds by the academy trust, or material non-compliance with the terms and conditions of funding under the academy trust's funding agreement and the Academy Trust Handbook 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 trustees and ESFA.

Mr R Cowling
Accounting Officer
16 December 2024
FOSSE WAY ACADEMY LTD
STATEMENT OF TRUSTEES' RESPONSIBILITIES
FOR THE YEAR ENDED 31 AUGUST 2024
- 19 -

The trustees (who are also the directors of Fosse Way Academy Ltd for the purposes of company law) are responsible for preparing the trustees' 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 trustees to prepare accounts for each financial year. Under company law, the trustees must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period.

 

In preparing these accounts, the trustees are required to:

 

The trustees 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 trustees are responsible for ensuring that in its conduct and operation the charitable company applies financial and other controls, which conform with the requirements both of propriety and of good financial management. They are also responsible for ensuring that grants received from ESFA/DfE have been applied for the purposes intended.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of accounts may differ from legislation in other jurisdictions.

Approved by order of the members of the board of trustees on 16 December 2024 and signed on its behalf by:

Miss C Caldwell
FOSSE WAY ACADEMY LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FOSSE WAY ACADEMY LTD
FOR THE YEAR ENDED 31 AUGUST 2024
- 20 -

Opinion

We have audited the accounts of Fosse Way Academy Ltd for the year ended 31 August 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the accounts, including 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.

In our opinion the accounts:

-

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the academy trust’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the accounts and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the accounts does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the accounts themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

FOSSE WAY ACADEMY LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FOSSE WAY ACADEMY LTD (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 21 -
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 trustees' report including the incorporated strategic report for the financial year for which the accounts are prepared is consistent with the accounts; and

-

the trustees' report including the incorporated strategic report 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 trustees' report, including the incorporated strategic report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

-

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-

the accounts are not in agreement with the accounting records and returns; or

-

certain disclosures of trustees' remuneration specified by law are not made; or

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

As explained more fully in the statement of trustees' responsibilities, the trustees are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error. In preparing the accounts, the trustees are responsible for assessing the academy trust’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company, or have no realistic alternative but to do so.

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.

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.

FOSSE WAY ACADEMY LTD
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FOSSE WAY ACADEMY LTD (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 22 -

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.

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.

Mr Mark Jackson FCA DChA (Senior Statutory Auditor)
for and on behalf of Azets Audit Services
17 December 2024
Chartered Accountants
Statutory Auditor
Westpoint
Lynch Wood
Peterborough
Cambridgeshire
United Kingdom
PE2 6FZ
FOSSE WAY ACADEMY LTD
INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO FOSSE WAY ACADEMY LTD AND THE EDUCATION AND SKILLS FUNDING AGENCY
FOR THE YEAR ENDED 31 AUGUST 2024
- 23 -

In accordance with the terms of our engagement letter dated 28 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 Fosse Way Academy Ltd 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 Fosse Way Academy Ltd and ESFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to Fosse Way Academy Ltd 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 Fosse Way Academy Ltd and ESFA, for our work, for this report, or for the conclusion we have formed.

Respective responsibilities of Fosse Way Academy Ltd's accounting officer and the reporting accountant

The accounting officer is responsible, under the requirements of Fosse Way Academy Ltd’s funding agreement with the Secretary of State for Education dated 1 September 2011, (as amended by a deed of variation dated 11 March 2013) and the Academies Trust 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.

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:

FOSSE WAY ACADEMY LTD
INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO FOSSE WAY ACADEMY LTD AND THE EDUCATION AND SKILLS FUNDING AGENCY (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 24 -
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 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.

Reporting Accountant
Azets Audit Services
Westpoint
Lynch Wood
Peterborough
Cambridgeshire
PE2 6FZ
United Kingdom
Dated: 17 December 2024
FOSSE WAY ACADEMY LTD
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2024
- 25 -
Unrestricted
Restricted funds:
Total
Total
funds
General
Fixed asset
2024
2023
Notes
£
£
£
£
£
Income and endowments from:
Donations and capital grants
3
3,853
-
9,795
13,648
33,393
Charitable activities:
- Funding for educational operations
5
139,161
2,840,860
-
2,980,021
2,956,046
Investments
4
45
-
-
45
64
Total
143,059
2,840,860
9,795
2,993,714
2,989,503
Expenditure on:
Charitable activities:
- Educational operations
7
118,893
3,022,794
116,429
3,258,116
3,205,785
Total
6
118,893
3,022,794
116,429
3,258,116
3,205,785
Net income/(expenditure)
24,166
(181,934)
(106,634)
(264,402)
(216,282)
Transfers between funds
17
(210,447)
220,242
(9,795)
-
-
Other recognised gains/(losses)
Actuarial gains on defined benefit pension schemes
19
-
98,000
-
98,000
362,000
Adjustment for restriction on pension assets
19
-
(193,000)
-
(193,000)
(342,000)
Net movement in funds
(186,281)
(56,692)
(116,429)
(359,402)
(196,282)
Reconciliation of funds
Total funds brought forward
321,068
56,692
2,906,708
3,284,468
3,480,750
Total funds carried forward
134,787
-
2,790,279
2,925,066
3,284,468
FOSSE WAY ACADEMY LTD
STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED)
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2024
- 26 -
Comparative year information
Unrestricted
Restricted funds:
Total
Year ended 31 August 2023
funds
General
Fixed asset
2023
Notes
£
£
£
£
Income and endowments from:
Donations and capital grants
3
2,406
-
30,987
33,393
Charitable activities:
- Funding for educational operations
5
131,306
2,824,740
-
2,956,046
Investments
4
64
-
-
64
Total
133,776
2,824,740
30,987
2,989,503
Expenditure on:
Charitable activities:
- Educational operations
7
123,059
2,976,200
106,526
3,205,785
Total
6
123,059
2,976,200
106,526
3,205,785
Net income/(expenditure)
10,717
(151,460)
(75,539)
(216,282)
Transfers between funds
17
(58,520)
-
58,520
-
Other recognised gains/(losses)
Actuarial gains on defined benefit pension schemes
19
-
362,000
-
362,000
Adjustment for restriction on pension assets
19
-
(342,000)
-
(342,000)
Net movement in funds
(47,803)
(131,460)
(17,019)
(196,282)
Reconciliation of funds
Total funds brought forward
368,871
188,152
2,923,727
3,480,750
Total funds carried forward
321,068
56,692
2,906,708
3,284,468
FOSSE WAY ACADEMY LTD
BALANCE SHEET
AS AT 31 AUGUST 2024
- 27 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
2,790,279
2,906,708
Current assets
Stock
13
-
427
Debtors
14
107,494
108,390
Cash at bank and in hand
166,530
412,371
274,024
521,188
Current liabilities
Creditors: amounts falling due within one year
15
(139,237)
(143,428)
Net current assets
134,787
377,760
Net assets excluding pension asset
2,925,066
3,284,468
Defined benefit pension scheme asset
19
-
-
Total net assets
2,925,066
3,284,468
Funds of the academy trust:
Restricted funds
17
- Fixed asset funds
2,790,279
2,906,708
- Restricted income funds
-
56,692
Total restricted funds
2,790,279
2,963,400
Unrestricted income funds
17
134,787
321,068
Total funds
2,925,066
3,284,468

The accounts on pages 25 to 47 were approved by the trustees and authorised for issue on 16 December 2024 and are signed on their behalf by:

Miss C Caldwell
Company registration number 07534695 (England and Wales)
FOSSE WAY ACADEMY LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024
- 28 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Net cash used in operating activities
20
(255,681)
(100,021)
Cash flows from investing activities
Dividends, interest and rents from investments
45
64
Capital grants from DfE Group
9,795
30,987
Purchase of tangible fixed assets
-
(89,507)
Net cash provided by/(used in) investing activities
9,840
(58,456)
Net decrease in cash and cash equivalents in the reporting period
(245,841)
(158,477)
Cash and cash equivalents at beginning of the year
412,371
570,848
Cash and cash equivalents at end of the year
166,530
412,371
FOSSE WAY ACADEMY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 29 -
1
Accounting policies

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 2023 to 2024 issued by ESFA, the Charities Act 2011 and the Companies Act 2006.

1.2
Going concern

The trustees assess whether the use of going concern is appropriate, ie whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charitable company to continue as a going concern. The trustees 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.

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.

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.

FOSSE WAY ACADEMY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 30 -
Donated goods, facilities and 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

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 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.

Expenditure on raising funds

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.

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, trustees' meetings and reimbursed expenses.

1.5
Tangible fixed assets and depreciation

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.

FOSSE WAY ACADEMY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 31 -

Leasehold property has been valued on a depreciated replacement cost basis on the assumption of

continuation of existing use. The valuation was undertaken by professional valuers, commissioned by the ESFA.

 

Furniture and equipment transferred into the academy trust from the previous local authority school has not been valued and introduced into these accounts.

 

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:

Leasehold land and property
50 years straight line
Fixtures, fittings and equipment
3 years straight line

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 payable under operating leases are charged against income on a straight line basis over the period of the lease.

 

The land and buildings from which the school operate are leased from the local authority at nil rent. A

commercial value of the lease has not been included in these accounts as expenditure or donated

income.

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.

FOSSE WAY ACADEMY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 32 -
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 trustees.

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

Restricted general funds comprise all other restricted funds received and include grants from the Education & Skills Funding Agency/Department for Education.

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.

FOSSE WAY ACADEMY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
2
Critical accounting estimates and areas of judgement
(Continued)
- 33 -
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 19, 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.

3
Donations and capital grants
Unrestricted
Restricted
Total
Total
funds
funds
2024
2023
£
£
£
£
Capital grants
-
9,795
9,795
30,987
Other donations
3,853
-
3,853
2,406
3,853
9,795
13,648
33,393
4
Investment income
Unrestricted
Restricted
Total
Total
funds
funds
2024
2023
£
£
£
£
Short term deposits
45
-
45
64
FOSSE WAY ACADEMY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 34 -
5
Funding for the academy trust's educational operations
Unrestricted
Restricted
Total
Total
funds
funds
2024
2023
£
£
£
£
DfE/ESFA grants
General annual grant (GAG)
-
2,091,170
2,091,170
2,119,705
Other DfE/ESFA grants:
- UIFSM
-
70,904
70,904
68,685
- Pupil premium
-
183,637
183,637
169,712
- PE and sport premium
-
20,100
20,100
20,290
- Supplementary grant
-
-
-
61,696
- Teachers pay grant
-
37,458
37,458
1,591
- Teachers pension grant
-
19,117
19,117
4,495
- Others
-
93,203
93,203
77,212
-
2,515,589
2,515,589
2,523,386
Other government grants
Local authority grants
-
325,271
325,271
301,354
Other incoming resources
139,161
-
139,161
131,306
Total funding
139,161
2,840,860
2,980,021
2,956,046
6
Expenditure
Non-pay expenditure
Total
Total
Staff costs
Premises
Other
2024
2023
£
£
£
£
£
Academy's educational operations
- Direct costs
1,541,766
-
164,195
1,705,961
1,540,714
- Allocated support costs
1,027,850
325,670
198,635
1,552,155
1,665,071
2,569,616
325,670
362,830
3,258,116
3,205,785
Net income/(expenditure) for the year includes:
2024
2023
£
£
Operating lease rentals
-
5,392
Depreciation of tangible fixed assets
116,429
106,526
Fees payable to auditor for:
- Audit
9,550
8,850
- Other services
1,722
950
Net interest on defined benefit pension liability
(40,000)
(17,000)
FOSSE WAY ACADEMY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 35 -
7
Charitable activities
Unrestricted
Restricted
Total
Total
funds
funds
2024
2023
£
£
£
£
Direct costs
Educational operations
34,528
1,671,433
1,705,961
1,540,714
Support costs
Educational operations
84,365
1,467,790
1,552,155
1,665,071
118,893
3,139,223
3,258,116
3,205,785
Analysis of costs
2024
2023
£
£
Direct costs
Teaching and educational support staff costs
1,543,452
1,395,810
Staff development
10,231
13,991
Technology costs
20,330
13,422
Educational supplies and services
97,420
91,365
Other direct costs
34,528
26,126
1,705,961
1,540,714
Support costs
Support staff costs
1,027,850
1,130,272
Depreciation
116,429
106,526
Maintenance of premises and equipment
38,200
67,067
Rent, rates and other occupancy costs
171,041
154,682
Catering
165,832
162,862
Finance costs
(40,000)
(17,000)
Legal costs
15,561
16,496
Other support costs
45,970
34,096
Governance costs
11,272
10,070
1,552,155
1,665,071
8
Governance costs
Total
Total
All from restricted funds:
2024
2023
£
£
Amounts included in support costs
Legal costs
15,561
16,496
Auditor's remuneration
- Audit of financial statements
9,550
8,850
- Other audit costs
1,722
950
Trustees' reimbursed expenses
-
270
26,833
26,566
FOSSE WAY ACADEMY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 36 -
9
Staff
Staff costs and employee benefits
Staff costs during the year were:
2024
2023
£
£
Wages and salaries
1,955,984
1,826,901
Social security costs
164,571
171,340
Pension costs
431,592
455,525
Staff costs - employees
2,552,147
2,453,766
Agency staff costs
5,169
72,316
Staff restructuring costs
12,300
-
2,569,616
2,526,082
Staff development and other staff costs
11,917
13,991
Total staff expenditure
2,581,533
2,540,073
Staff restructuring costs comprise:
Severance payments
12,300
-
Severance payments

The academy trust paid 2 severance payments in the year, disclosed in the following bands:

£0 - £25,000
2
Staff numbers
The average number of persons employed by the academy trust during the year was as follows:
2024
2023
Number
Number
Teachers
22
22
Administration and support
54
52
Management
2
2
78
76
FOSSE WAY ACADEMY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
9
Staff
(Continued)
- 37 -
Higher paid staff
The number of employees whose employee benefits (excluding employer pension costs and employer national insurance contributions) exceeded £60,000 was:
2024
2023
Number
Number
£60,000 - £70,000
1
-
£80,000 - £90,000
1
1
Key management personnel

The key management personnel of the academy trust comprise the trustees and the senior management team as listed on page 1. The total amount of 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 £271,000 (2023: £250,733).

10
Trustees' remuneration and expenses

One or more trustees has been paid remuneration or has received other benefits from an employment with the academy trust. The principal and other staff trustees only receive remuneration in respect of services they provide undertaking the roles of principal and staff members under their contracts of employment, and not in respect of their services as trustees. Other trustees did not receive any payments, other than expenses, from the academy trust in respect of their role as trustees.

 

The value of trustees' remuneration and other benefits was as follows:

 

Mr R Cowling (principal and trustee)

    Remuneration £85,000 - £90,000 (2023 - £80,000 - £85,000 )

    Employer’s pension contributions £20,000 - £25,000 (2023 - £15,000 - £20,000)

 

Mr A Coupland (staff trustee)

    Remuneration £60,000 - £65,000 (2023 - £55,000 - £60,000)

    Employer’s pension contributions £15,000 - £20,000 (2023 - £10,000 - £15,000)

 

Ms N Cotton (staff trustee)

    Remuneration £50,000 - £55,000 (2023 - £45,000 - £50,000)

    Employer’s pension contributions £10,000 - £15,000 (2023 - £10,000 - £15,000)

 

During the year ended 31 August 2024, £Nil of travel and subsistence expenses were reimbursed or paid directly to trustees (2023 - £Nil).

11
Trustees' and officers' insurance

In accordance with normal commercial practice, the academy trust has purchased insurance to protect trustees and officers from claims arising from negligent acts, errors or omissions occurring whilst on academy trust business. The insurance provides cover up to £5,000,000 on any one claim and the cost for the year ended 31 August 2024 is included within total insurance costs.

FOSSE WAY ACADEMY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 38 -
12
Tangible fixed assets
Leasehold property
Fixtures, fittings and equipment
Total
£
£
£
Cost
At 1 September 2023 and 31 August 2024
3,549,258
386,195
3,935,453
Depreciation
At 1 September 2023
730,007
298,738
1,028,745
Charge for the year
74,150
42,279
116,429
At 31 August 2024
804,157
341,017
1,145,174
Net book value
At 31 August 2024
2,745,101
45,178
2,790,279
At 31 August 2023
2,819,251
87,457
2,906,708
13
Stock
2024
2023
£
£
School uniform
-
427
14
Debtors
2024
2023
£
£
VAT recoverable
27,029
29,543
Other debtors
-
302
Prepayments and accrued income
80,465
78,545
107,494
108,390
15
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
8,753
-
Other taxation and social security
36,313
36,997
Other creditors
18
202
Accruals and deferred income
94,153
106,229
139,237
143,428
FOSSE WAY ACADEMY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 39 -
16
Deferred income
2024
2023
£
£
Deferred income is included within:
Creditors due within one year
54,143
55,105
Deferred income at 1 September 2023
55,105
50,612
Released from previous years
(55,105)
(50,612)
Resources deferred in the year
54,143
55,105
Deferred income at 31 August 2024
54,143
55,105

Deferred income amounting to £41,361 (2023 - £42,062) relates to Universal Infant Free School Meals for September 2024 received from the ESFA, £10,840 (2023 - £12,095) is deferred trip income and £1,942 (2023 - £948) relates to wraparound income.

FOSSE WAY ACADEMY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 40 -
17
Funds
Balance at
Gains,
Balance at
1 September
losses and
31 August
2023
Income
Expenditure
transfers
2024
£
£
£
£
£
Restricted general funds
General Annual Grant (GAG)
56,692
2,091,170
(2,368,104)
220,242
-
UIFSM
-
70,904
(70,904)
-
-
Pupil premium
-
183,637
(183,637)
-
-
Other DfE/ESFA grants
-
169,878
(169,878)
-
-
Other government grants
-
325,271
(325,271)
-
-
Pension reserve
-
-
95,000
(95,000)
-
56,692
2,840,860
(3,022,794)
125,242
-
Restricted fixed asset funds
Inherited on conversion
2,126,763
-
(56,761)
-
2,070,002
Capital expenditure from GAG
779,945
-
(59,668)
-
720,277
DfE group capital grants
-
9,795
-
(9,795)
-
2,906,708
9,795
(116,429)
(9,795)
2,790,279
Total restricted funds
2,963,400
2,850,655
(3,139,223)
115,447
2,790,279
Unrestricted funds
General funds
229,588
141,962
(118,893)
(133,048)
119,609
Capital projects
91,480
-
-
(91,480)
-
Friends of Fosse Way
-
1,097
-
14,081
15,178
321,068
143,059
(118,893)
(210,447)
134,787
Total funds
3,284,468
2,993,714
(3,258,116)
(95,000)
2,925,066

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

 

The restricted grant income in the year 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.

 

The inherited fixed assets and capital expenditure from GAG and other funds represents the net book value of fixed assets held.

 

The capital projects fund has been designated for use on future capital expenditure.

FOSSE WAY ACADEMY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
17
Funds
(Continued)
- 41 -
Comparative information in respect of the preceding period is as follows:
Balance at
Gains,
Balance at
1 September
losses and
31 August
2022
Income
Expenditure
transfers
2023
£
£
£
£
£
Restricted general funds
General Annual Grant (GAG)
188,152
2,119,705
(2,251,165)
-
56,692
UIFSM
-
68,685
(68,685)
-
-
Pupil premium
-
169,712
(169,712)
-
-
Other DfE/ESFA grants
-
165,284
(165,284)
-
-
Other government grants
-
301,354
(301,354)
-
-
Pension reserve
-
-
(20,000)
20,000
-
188,152
2,824,740
(2,976,200)
20,000
56,692
Restricted fixed asset funds
Inherited on conversion
2,183,524
-
(56,761)
-
2,126,763
DfE group capital grants
-
30,987
-
(30,987)
-
Capital expenditure from GAG
740,203
-
(49,765)
89,507
779,945
2,923,727
30,987
(106,526)
58,520
2,906,708
Total restricted funds
3,111,879
2,855,727
(3,082,726)
78,520
2,963,400
Unrestricted funds
General funds
218,871
133,776
(123,059)
-
229,588
Capital projects
150,000
-
-
(58,520)
91,480
368,871
133,776
(123,059)
(58,520)
321,068
Total funds
3,480,750
2,989,503
(3,205,785)
20,000
3,284,468
18
Analysis of net assets between funds
Unrestricted
Restricted funds:
Total
Funds
General
Fixed asset
Funds
£
£
£
£
Fund balances at 31 August 2024 are represented by:
Tangible fixed assets
-
-
2,790,279
2,790,279
Current assets
134,787
139,237
-
274,024
Current liabilities
-
(139,237)
-
(139,237)
Total net assets
134,787
-
2,790,279
2,925,066
FOSSE WAY ACADEMY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
18
Analysis of net assets between funds
(Continued)
- 42 -
Unrestricted
Restricted funds:
Total
Funds
General
Fixed asset
Funds
£
£
£
£
Fund balances at 31 August 2023 are represented by:
Tangible fixed assets
-
-
2,906,708
2,906,708
Current assets
321,068
200,120
-
521,188
Current liabilities
-
(143,428)
-
(143,428)
Total net assets
321,068
56,692
2,906,708
3,284,468
19
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 Lincolnshire 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.

There were no outstanding or prepaid contributions at either the beginning or the end of the financial year.

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 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:

FOSSE WAY ACADEMY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
19
Pension and similar obligations
(Continued)
- 43 -

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 £258,584 (2023: £239,779).

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.

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 18.4% for employers and 5.5 to 6.5% 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 £843,000 (2023 - £650,000). 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
2024
2023
£
£
Employer's contributions
205,000
173,000
Employees' contributions
47,000
44,000
Total contributions
252,000
217,000
Principal actuarial assumptions
2024
2023
%
%
Rate of increase in salaries
3.80
3.85
Rate of increase for pensions in payment/inflation
2.80
2.85
Discount rate for scheme liabilities
5.10
5.30
FOSSE WAY ACADEMY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
19
Pension and similar obligations
(Continued)
- 44 -
The current mortality assumptions include sufficient allowance for future improvements in mortality rates.  The assumed life expectations on retirement age 65 are:
2024
2023
Years
Years
Retiring today
- Males
19.5
19.5
- Females
22.7
22.6
Retiring in 20 years
- Males
20.7
20.8
- Females
24.1
24.0
Sensitivity analysis

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

2024
2023
0.5% decrease in Real Discount Rate
290,000
234,000
0.5% increase in the Salary Increase Rate
6,000
6,000
0.5% increase in the Pension Increase Rate
289,000
232,000
The academy trust's share of the assets in the scheme
2024
2023
Fair value
Fair value
£
£
Equities
1,991,000
1,811,000
Bonds
505,000
386,000
Property
258,000
218,000
Other assets
879,000
519,000
Total market value of assets
3,633,000
2,934,000
Restriction on scheme assets
(843,000)
(650,000)
Net assets recognised
2,790,000
2,284,000
The actual return on scheme assets was £330,000 (2023: £218,000).
Amount recognised in the statement of financial activities
2024
2023
£
£
Current service cost
149,000
207,000
Interest income
(165,000)
(112,000)
Interest cost
125,000
95,000
Administration expenses
1,000
3,000
Total amount recognised
110,000
193,000
FOSSE WAY ACADEMY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
19
Pension and similar obligations
(Continued)
- 45 -

The net gain recognised on scheme assets has been restricted because the full pension surplus is not expected to be recovered through refunds or reduced contributions in the future.

Changes in the present value of defined benefit obligations
2024
2023
£
£
At 1 September 2023
2,284,000
2,232,000
Current service cost
149,000
207,000
Interest cost
125,000
95,000
Employee contributions
47,000
44,000
Actuarial loss/(gain)
67,000
(256,000)
Benefits paid
118,000
(38,000)
At 31 August 2024
2,790,000
2,284,000
Changes in the fair value of the academy trust's share of scheme assets
2024
2023
£
£
At 1 September 2023
2,934,000
2,540,000
Interest income
165,000
112,000
Actuarial gain
165,000
106,000
Employer contributions
205,000
173,000
Employee contributions
47,000
44,000
Benefits paid
118,000
(38,000)
Effect of non-routine settlements and administration expenses
(1,000)
(3,000)
At 31 August 2024
3,633,000
2,934,000
Restriction on scheme assets
(843,000)
(650,000)
Net assets recognised
2,790,000
2,284,000
FOSSE WAY ACADEMY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 46 -
20
Reconciliation of net expenditure to net cash flow from operating activities
2024
2023
Notes
£
£
Net expenditure for the reporting period (as per the statement of financial activities)
(264,402)
(216,282)
Adjusted for:
Capital grants from DfE and other capital income
(9,795)
(30,987)
Investment income receivable
4
(45)
(64)
Defined benefit pension costs less contributions payable
19
(55,000)
37,000
Defined benefit pension scheme finance income
19
(40,000)
(17,000)
Depreciation of tangible fixed assets
116,429
106,526
Decrease in stocks
427
-
Decrease in debtors
896
22,586
(Decrease) in creditors
(4,191)
(1,800)
Net cash used in operating activities
(255,681)
(100,021)
21
Analysis of changes in net funds
1 September 2023
Cash flows
31 August 2024
£
£
£
Cash
412,371
(245,841)
166,530
22
Long-term commitments
Operating leases
At 31 August 2024 the total of the academy trust's future minimum lease payments under non-cancellable operating leases was:
2024
2023
£
£
Amounts due within one year
5,392
5,392
Amounts due in two and five years
4,493
9,885
9,885
15,277
FOSSE WAY ACADEMY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 47 -
23
Related party transactions

Owing to the nature of the academy trust's operations and the composition of the board of trustees being drawn from local public and private sector organisations, transactions may take place with organisations in which the 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.

 

During the year the academy purchased services from C Caldwell (trustee) for £Nil (2023 - £3,600).

 

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.

 

24
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.

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