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.
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.
Each member of the charitable company undertakes to contribute to the assets of the charitable company in the event of it being wound up while they are a member, or within one year after they cease to be a member, such amount as may be required, not exceeding £10, for the debts and liabilities contracted before they ceased to be a member.
The academy has insurance cover of £5m for trustee’s liabilities.
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.
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.
organisational structure consists of:
The Board of Directors including the Head Teacher and Deputy Head Teacher
The Senior Leadership Team
Core Subject Leaders
Whole staff team
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:
Standards and Curriculum
- 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
Development Plan
- 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:
Resources and Finance
- 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 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.
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.
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:
To ensure that all children are kept safe
To ensure every pupil has access to the same high quality education and that resourcing, teaching and care meets their needs in achieving this
To raise standards in attainment and progress for all pupils
To support teachers in reaching the highest standards through Appraisal and continuing professional development
To continue to evaluate and refine the curriculum and organisational structure in light of the New National Curriculum
To devise and refine assessment procedures which enable effective teaching and learning
To provide value for money
To comply with all appropriate statutory and curriculum requirements
To maintain and develop links with the local community
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:
being proactive in ensuring all pupil's abilities are accurately identified and are catered for through appropriate teaching and learning strategies
quality teaching and learning opportunities which result in high levels of attainment, active participation and achievement across the broad and balanced curriculum
activities which promote respect for British Values and Protected Characteristics and which enable pupils to become active citizens in our community
ensuring all appropriate safeguarding procedures are in place and regularly monitored to remain effective
appropriate training opportunities are made available for Directors, teaching and non-teaching staff
procuring the services of artists and visitors to enhance the curricular offer
In setting our objectives and planning our activities, the trustees have carefully considered the Charity Commission’s general guidance on public benefit.
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.
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:
Improve standards in the teaching and learning of English
To develop the leadership role of subject co- ordinators throughout school
Promote Fosse Way to Maintain/ Increase the School Roll
Implement an effective Performance Management System which contributes to securing the improvements priorities identified by senior leaders
Improve standards in the teaching and learning of Reading
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%
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.
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.
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.
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.
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:
Monthly management accounts produced by the school
Internal controls of the school
Regular and timely reconciliations operated by the school
Robust financial policies and procedures operated by the school
Financial regulations of the school
Internal and external audit including RO visits and reports
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.
3. Pupil Strategy
The risk of falling pupil numbers across the Academy is mitigated by:
Admissions policy
Open day events
Marketing strategy
Effective networking
A tight focus on high academic achievement alongside an engaging wider curriculum offer
Wraparound childcare facilities for working parents
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.
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.
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:
Strategies to maintain/ increase the number of families accessing our Nursery, Reception and the school as a whole
Refurbishment of pupil toilet areas
Refresh some aspects of the school’s ICT provision including interactive screens and teacher laptops.
A resolution proposing that Azets Audit Services be reappointed as auditor of the charitable company will be put to the members.
The trustees' report, incorporating a strategic report, was approved by order of the board of trustees, as the company directors, on
As trustees we acknowledge we have overall responsibility for ensuring that 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.
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:
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
To establish an effective and regular internal review of Governance and the layers of Governance.
Evidence used to establish this aspect for further improvement:
Several governors new to specific posts and therefore self-review of governance deemed essential to ensure effective engagement with governor responsibilities;
Recognition for need to establish clearer procedures for disseminating information to the Members;
Identification of the need to strengthen governors working knowledge of the SDP priorities to seek assurance that each priority is progressing and to effectively hold leaders to account.
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:
Change in governors with key responsibilities for financial oversight;
Predicted lower pupil numbers entering Reception from September 2023 onwards.
Need to review class structures and staffing to ensure these are appropriate for financial and pupil projections
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:
Change in governors with key responsibilities for financial oversight;
Predicted lower pupil numbers entering Reception from September 2023 onwards.
Need to review class structures and staffing to ensure these are appropriate for financial and pupil projections
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.
1. Conducting a Governance Self-Review
Framework and Tools: Using resources from The Key for Governors and Governor Hub, the governing body accesses templates, checklists, and guidance tailored to effective governance. These resources include frameworks for evaluating compliance, strategic focus, and overall effectiveness.
Meeting Reflections: At the end of each term or key decision-making process, the governing body engages in structured discussions to assess the effectiveness of its meetings, focusing on decision-making quality, clarity, and strategic oversight.
2. Skills Audit
Individual and Collective Skills Evaluation: The governing body completes a skills audit using standardised templates from The Key for Governors. This process assesses individual members' expertise in areas such as finance, education, risk management, and legal knowledge.
Gap Analysis: The results of the audit are collated to identify collective strengths and areas requiring development. This informs training needs and recruitment priorities to ensure the governing body has the necessary expertise to fulfil its duties effectively.
3. Reviewing Governance Policies and Processes
Policy Alignment Check: The governing body reviews its governance policies, including terms of reference, committee structures, and decision-making protocols, to ensure they align with statutory requirements and best practices.
Monitoring and Evaluation of Impact: Internal tools, such as Google Forms and reports, are used to evaluate the impact of governance decisions on school performance and stakeholder satisfaction.
4. Benchmarking Against Best Practice
Case Studies and Guidance: By examining case studies or guidance provided by The Key for Governors and other trusted resources, the governing body compares its governance practices with sector standards.
Strategic Alignment: Trustees assess whether their strategic priorities align with the school’s vision, values, and objectives, ensuring they are focusing on long-term success.
5. Gathering Stakeholder Feedback
360-Degree Feedback: Stakeholders such as school leadership, staff, and parents can provide feedback on the governing body's visibility, communication, and perceived effectiveness.
Surveys and Consultations: The governing body issues surveys or conduct focus groups to understand stakeholder perspectives and incorporate insights into its self-review.
6. Action Planning
Documenting Findings: Outcomes from the self-review, skills audit, and stakeholder feedback are documented in a governance improvement plan.
Setting Priorities: The governing body establishes clear, time-bound objectives to address identified weaknesses and build on strengths.
Training and Development: Members access targeted training through platforms like Governor Hub and NGA courses to understand new roles, fill skill gaps and stay updated on governance best practices.
7. Periodic Monitoring of Progress
The governing body schedules regular reviews of its governance improvement plan to track progress and make adjustments as needed, ensuring a continuous improvement cycle.
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:
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:
Staffing
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.
Premises
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.
Purchasing
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:
Challenge - Is the school’s performance high enough relating to attainment and progress? Why and how is a service provided? Do we still need the service? Can it be delivered differently? What do parents and pupils want?
Compare - How does the school’s pupil performance and financial performance compare with all schools?
Consult - How does the school seek the views of stakeholders about the services the school provides?
Compete - How does the school secure efficient and effective services? Are services of appropriate quality, and are they economic?
The Governors’ Approach
The Governors and school managers apply the principles of best value when making decisions about:
the allocation of resources to best promote the aims and values of the school.
the targeting of resources to best improve standards and the quality of provision.
the use of resources to best support the various educational needs of all pupils.
Governors, and the school managers:
Challenge
challenge proposals, examining them for effectiveness, efficiency and cost, e.g. setting/reviewing achievement targets, setting/reviewing staffing structures, contracting for/reviewing the use of services, setting/reviewing budget figures.
Consult
consult individuals and organisations on quality/suitability of service we provide to parents and pupils, and services we receive from providers, e.g. Sex and Relationships Education, pupil reports/feedback, parental surveys, OFSTED, Financial/Accounting consultants, Behaviour Support Specialists, Educational Psychology Service, Specialist Teaching and Applied Psychology Service (STAPS), Speech and Language Services, Autism Outreach, Counselling Services, HR Providers.
Compare
make comparisons with other/similar schools using data provided by the Local Authority and the Government, e.g. benchmarking tools, quality of teaching & learning, levels of expenditure.
Compete
require suppliers to compete on grounds of cost, and quality/suitability of services/products/backup.
This applies in particular to:
staffing
use of resources
quality of teaching
quality of learning
purchasing
pupils’ welfare
health and safety
Governors and school managers:
do not waste time and resources on investigating minor areas where few improvements can be achieved.
do not waste time and resources to make minor savings in costs.
do not waste time and resources by seeking tenders for minor supplies and services.
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:
a curriculum which meets the requirements of the National Curriculum, the LEA Agreed RE Syllabus and the needs of our pupils.
teaching which builds on previous learning and has high expectations of children’s achievement.
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.
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:
competitive tendering procedures (e.g. for goods and services above £30,000)
three quotes for goods and services in excess of £10,000
procedures for accepting ‘best value’ quotes, which are not necessarily the cheapest (e.g. suitability for purpose and quality of workmanship)
procedures which minimise office time by the purchase of goods or services under £1000 direct from known, reliable suppliers (e.g. stationery, small equipment). This includes the use of ESPO which has already negotiated lower rates for educational goods and services.
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:
in conjunction with Team Leaders, hold an annual performance plan meeting to set targets for improving pupil achievement. This will inform the School Improvement Plan.
hold regular reviews of the School Improvement Plan with the Senior Leadership Team and Governors.
discuss ‘Best Value’ at each meeting of the Finance Committee, detailing when necessary how best value has been achieved.
annually review the ‘Best Value’ and ‘competitive tendering’ statement.
consider best value when arranging contracts, adhering to all academy policies relating to the procurement of goods and services.
The Governing Body is responsible for making sure that the estate is safe and well-maintained.
The Governing Body delegates operational matters.
School staff are responsible for:
Taking reasonable steps to make sure staff and pupils aren't exposed to risks to their health and safety
Assessing the risks to staff and others affected by school activities
Where applicable, keeping a record of significant findings
Introducing measures to manage risks
Telling employees about the risks and measures to be taken to manage the risks
Making sure adequate training is given to employees on health and safety measures
Setting out arrangements in a written health and safety policy
The Governing Body retains oversight responsibility through a link governor
The Governing Body meets its legal responsibilities by:
Checking that the health and safety policy complies with legislation and meets best practice
Having regular discussions at governance meetings about compliance with the policy
Promoting a sensible approach to health and safety
Working closely with senior staff to support health and safety, and providing challenge as appropriate
Making sure staff are getting the training they need
Monitoring how staff assess and follow up on any identified health and safety issues
Checking that accidents and 'near misses' are being recorded and looking for patterns that might cause concern
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.
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 is operating efficiently and effectively
its assets are safeguarded against unauthorised use or disposition
the proper records are maintained and financial information used within the Academy or for publication is reliable the Academy complies with relevant laws and regulations
The academy trust's system of internal financial control is based on a framework of regular management information and administrative procedures including the segregation of duties and a system of delegation and accountability. In particular it includes:
comprehensive budgeting and monitoring systems with an annual budget and periodic financial reports which are reviewed and agreed by the board of trustees;
regular reviews by the finance and general purposes committee of reports which indicate financial performance against the forecasts and of major purchase plans, capital works and expenditure programmes;
setting targets to measure financial and other performance;
clearly defined purchasing (asset purchase or capital investment) guidelines;
delegation of authority and segregation of duties;
identification and management of risks.
The board of trustees has considered the need for a specific internal audit function and has decided to appoint Bishop Fleming Audit Services to perform additional checks.
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:
bank and cash
budgets and financial monitoring
credit card use
expenditure
fixed assets
payroll
income
compliance
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.
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 work of the responsible officer;
the work of the external auditor;
the financial management and governance self-assessment process;
the work of the school business manager and Finance Governor within the academy trust who have responsibility for the development and maintenance of the internal control framework.
The accounting officer has been advised of the implications of the result of their review of the system of internal control by the 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:
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.
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:
select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP 2019 and the Academies Accounts Direction 2023 to 2024;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts; and
prepare the accounts on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The 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:
Opinion
In our opinion the accounts:
give a true and fair view of the state of the charitable company's affairs as at 31 August 2024 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
have been prepared in accordance with the requirements of the Companies Act 2006; and
have been prepared in accordance with the Charities SORP 2019 and the Academies Accounts Direction 2023 to 2024.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 'Auditor's responsibilities for the audit of the accounts' section of our report. We are independent of the academy trust in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the academy trust’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the accounts and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the accounts does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the accounts themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
the information given in the trustees' report including the incorporated strategic report for the financial year for which the accounts are prepared is consistent with the accounts; and
the trustees' report including the incorporated strategic report has been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the academy trust and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report, including the incorporated strategic report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the accounts are not in agreement with the accounting records and returns; or
certain disclosures of trustees' remuneration specified by law are not made; or
As explained more fully in the statement of trustees' responsibilities, the trustees are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error. In preparing the accounts, the trustees are responsible for assessing the academy trust’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company, or have no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these accounts.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of senior leadership, Governors/Trustees and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations including compliance with the Academies Accounts Direction 2023 to 2024 issued by the Education and Skills Funding Agency;
Performing audit work over the recognition of grant income and the allocation of expenditure to funds;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
In accordance with the terms of our engagement letter dated 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.
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.
We conducted our engagement in accordance with the Framework and Guide for External Auditors and Reporting Accountant of Academy Trusts issued by ESFA. We performed a limited assurance engagement as defined in our engagement letter.
The objective of a limited assurance engagement is to perform such procedures as to obtain information and explanations in order to provide us with sufficient appropriate evidence to express a negative conclusion on regularity.
A limited assurance engagement is more limited in scope than a reasonable assurance engagement and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in a reasonable assurance engagement. Accordingly, we do not express a positive opinion.
Our engagement includes examination, on a test basis, of evidence relevant to the regularity and propriety of the academy trust's income and expenditure.
The work undertaken to draw to our conclusion includes:
a review of the activities of the academy, by reference to sources of income and other information available to us;
sample testing of expenditure, including payroll;
a review of minutes of Governors’ meetings.
In the course of our work, nothing has come to our attention which suggests that in all material respects the expenditure disbursed and income received during the period 1 September 2023 to 31 August 2024 has not been applied to purposes intended by Parliament and the financial transactions do not conform to the authorities which govern them.
The accounts on pages 25 to 47 were approved by the trustees and authorised for issue on 16 December 2024 and are signed on their behalf by:
A summary of the principal accounting policies adopted (which have been applied consistently, except where noted), judgements and key sources of estimation uncertainty, is set out below.
The accounts of the academy trust, which is a public benefit entity under FRS 102, have been prepared under the historical cost convention in accordance with the Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102), the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)), the Academies Accounts Direction 2023 to 2024 issued by ESFA, the Charities Act 2011 and the Companies Act 2006.
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.
All incoming resources are recognised when the academy trust has entitlement to the funds, the receipt is probable and the amount can be measured reliably.
Grants are included in the statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the balance sheet. Where income is received in advance of meeting any performance-related conditions there is not unconditional entitlement to the income and its recognition is deferred and included in creditors as deferred income until the performance-related conditions are met. Where entitlement occurs before income is received, the income is accrued.
General Annual Grant is recognised in full in the statement of financial activities in the period for which it is receivable, and any abatement in respect of the period is deducted from income and recognised as a liability.
Capital grants are recognised in full when there is an unconditional entitlement to the grant. Unspent amounts of capital grants are reflected in the balance sheet in the restricted fixed asset fund. Capital grants are recognised when there is entitlement and are not deferred over the life of the asset on which they are expended.
Donations are recognised on a receivable basis (where there are no performance-related conditions) where the receipt is probable and the amount can be reliably measured.
Other income, including the hire of facilities, is recognised in the period it is receivable and to the extent the academy trust has provided the goods or services.
Goods donated for resale are included at fair value, being the expected proceeds from sale less the expected costs of sale. If it is practical to assess the fair value at receipt, it is recognised in stock and ‘Income from other trading activities’. Upon sale, the value of the stock is charged against ‘Income from other trading activities’ and the proceeds are recognised as ‘Income from other trading activities’. Where it is impractical to fair value the items due to the volume of low value items they are not recognised in the accounts until they are sold. This income is recognised within ‘Income from other trading activities’.
Donated fixed assets are measured at fair value unless it is impractical to measure this reliably, in which case the cost of the item to the donor is used. The gain is recognised as income from donations and a corresponding amount is included in the appropriate fixed asset category and depreciated over the useful economic life in accordance with the academy trust‘s accounting policies.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
All resources expended are inclusive of irrecoverable VAT.
This includes all expenditure incurred by the academy trust to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
These are costs incurred on the academy trust's educational operations, including support costs and costs relating to the governance of the academy trust apportioned to charitable activities.
These include the costs attributable to the academy trust's compliance with constitutional and statutory requirements, including audit, strategic management, trustees' meetings and reimbursed expenses.
Assets costing £1,000 or more are capitalised as tangible fixed assets and are carried at cost, net of depreciation and any provision for impairment.
Where tangible fixed assets have been acquired with the aid of specific grants, either from the government or from the private sector, they are included in the balance sheet at cost and depreciated over their expected useful economic life. 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.
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:
A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the statement of financial activities.
Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the academy trust anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods of services it must provide.
Rentals payable under operating leases are charged against income on a straight line basis over the period of the lease.
The 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.
The academy trust only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the academy trust and their measurement basis are as follows.
Trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments.
Cash at bank is classified as a basic financial instrument and is measured at face value.
Trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition.
Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument.
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.
The academy trust is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the academy trust is potentially exempt from taxation in respect of income or capital gains received within categories covered by chapter 3 part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Retirement benefits to employees of the academy trust are provided by the Teachers' Pension Scheme ('TPS') and the Local Government Pension Scheme ('LGPS'). These are defined benefit schemes and the assets are held separately from those of the academy trust.
The TPS is an unfunded scheme and contributions are calculated to spread the cost of pensions over employees' working lives with the academy trust in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary based on quadrennial valuations using a prospective unit credit method. The TPS is an unfunded multi-employer scheme with no underlying assets to assign between employers. Consequently, the TPS is treated as a defined contribution scheme for accounting purposes and the contributions are recognised in the period to which they relate.
The LGPS is a funded multi-employer scheme and the assets are held separately from those of the academy trust in separate trustee administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit credit method and discounted at a rate equivalent to the current rate of return on a high-quality corporate bond of equivalent term and currency to the liabilities. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The amounts charged to net income or expenditure are the current service costs and the costs of scheme introductions, benefit changes, settlements and curtailments. They are included as part of staff costs as incurred. Net interest on the net defined benefit liability/asset is also recognised in the statement of financial activities and comprises the interest cost on the defined benefit obligation and interest income on the scheme assets, calculated by multiplying the fair value of the scheme assets at the beginning of the period by the rate used to discount the benefit obligations. The difference between the interest income on the scheme assets and the actual return on the scheme assets is recognised in other recognised gains and losses. Actuarial gains and losses are recognised immediately in other recognised gains and losses.
Unrestricted income funds represent those resources which may be used towards meeting any of the charitable objects of the academy trust at the discretion of the trustees.
Restricted fixed asset funds are resources which are to be applied to specific capital purposes imposed by 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.
Accounting estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The academy trust makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
The present value of the Local Government Pension Scheme defined benefit liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost or income for pensions include the discount rate. Any changes in these assumptions, which are disclosed in note 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.
The academy trust paid 2 severance payments in the year, disclosed in the following bands:
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).
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).
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.
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.
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.
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.
The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pension Scheme Regulations 2014. Membership is automatic for teachers in academy trusts. All teachers have the option to opt out of the TPS following enrolment.
The TPS is an unfunded scheme to which both the member and employer makes contributions, as a percentage of salary. These contributions are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.
The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to ensure scheme costs are recognised and managed appropriately and the review specifies the level of future contributions.
Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2020. The valuation report was published by the Department for Education on 27 October 2023, with the SCAPE rate, set by HMT, applying a notional investment return based on 1.7% above the rate of CPI. The key elements of the valuation outcome are:
Employer contribution rates set at 28.68% of pensionable pay (including a 0.08% administration levy). This is an increase of 5% in employer contributions and the cost control result is such that no change in member benefits is needed.
Total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service to the effective date of £262,000 million and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £222,200 million, giving a notional past service deficit of £39,800 million.
The result of this valuation will be implemented from 1 April 2024.The next valuation result is due to be implemented from 1 April 2028.
The employer's pension costs paid to the TPS in the period amounted to £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.
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.
Scheme liabilities would have been affected by changes in assumptions as follows:
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.
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.
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.