Company registration number 07838151 (England and Wales)
THE MALCOLM SARGENT PRIMARY SCHOOL
(A COMPANY LIMITED BY GUARANTEE)
ANNUAL REPORT AND ACCOUNTS
FOR THE YEAR ENDED
31 AUGUST 2024
31 August 2024
THE MALCOLM SARGENT PRIMARY SCHOOL
CONTENTS
Page
Reference and administrative details
1 - 2
Trustees' report
3 - 9
Governance statement
10 - 13
Statement on regularity, propriety and compliance
14
Statement of trustees' responsibilities
15
Independent auditor's report on the accounts
16 - 18
Independent reporting accountant's report on regularity
19 - 20
Statement of financial activities including income and expenditure account
21 - 22
Group balance sheet
23
Charity balance sheet
24
Statement of cash flows
25
Notes to the accounts including accounting policies
26 - 46
THE MALCOLM SARGENT PRIMARY SCHOOL
REFERENCE AND ADMINISTRATIVE DETAILS
- 1 -
Members
K E Swanson
T M Harris
S Stanier
R Butler
S R Gaunt
Trustees
K E Swanson (Chair of Trustees)
M Brewin (Resigned 19 September 2024)
T J Revell (Accounting Officer)
S Gaunt (Resigned 2 September 2023)
J Shaw
A Donaghie
G Brown
T Perkins (Resigned 18 October 2023)
J Flint
L Steele
A Thomas
J Williamson
P Collins (Appointed 1 September 2023)
R Amies (Appointed 2 October 2023)
J Torrance (Appointed 2 October 2023)
Senior management team
- Principal
T J Revell
- Vice Principal
T Cox
- Assistant Principal
H Ward
- Assistant Principal
K Perry
- Finance Director
S Saunderson
- Business Director
M Town
- Accounting Officer
T J Revell
Company registration number
07838151 (England and Wales)
Registered office
The Malcolm Sargent Primary School
Empingham Road
Stamford
Lincolnshire
PE9 2SR
United Kingdom
Independent auditor
Azets Audit Services
Westpoint
Lynch Wood
Peterborough
Cambridgeshire
PE2 6FZ
United Kingdom
THE MALCOLM SARGENT PRIMARY SCHOOL
REFERENCE AND ADMINISTRATIVE DETAILS
- 2 -
Bankers
Lloyds Bank plc
65 High Street
Stamford
Lincolnshire
PE9 2AT
United Kingdom
THE MALCOLM SARGENT PRIMARY SCHOOL
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 3 -

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 under company law.

The academy trust operates an academy for pupils aged 4 to 11 serving a catchment of west Stamford. It has a published admissions number (PAN) of 90 with an additional bulge class of 30 admitted to the school upon the request of the local authority. In October 2023 the number of pupils on roll was 648.

Structure, governance and management
Constitution

The academy is a company limited by guarantee, incorporated on 7 November 2011, and an exempt charity.

 

On 1 December 2011, the charitable company commenced the operation of an academy school following the conversion from a Local Authority controlled school. The charitable company's memorandum and articles of association are the primary governing documents of the academy.

Members' liability

Each member of the charitable company undertake 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 members of the charitable company are:

T M Harris

K E Swanson

S Stanier     

S R Gaunt     

R A Butler

 

The Trustees act as the trustees for the charitable activities of The Malcolm Sargent Primary School, and are also the directors for the purpose of company law. The charitable company is known as The Malcolm Sargent Primary School.

 

Details of the Trustees who served during the period were:

K E Swanson*     (Chair of Trustees)

M Brewin    (Resigned 19 September 2024)

T J Revell*     (Principal and Accounting Officer)

S Gaunt* (Resigned 2 September 2023)

J Shaw*

T Perkins    (Resigned 18 October 2023)    

J Flint         

L Steele         

A Thomas

A Donaghie

J Williamson     

G Brown*     

P Collins*     (Appointed 1 September 2023)

R Amies*    (Appointed 2 October 2023)

J Torrance    (Appointed 2 October 2023)

 

* Members of Finance and Stewardship

THE MALCOLM SARGENT PRIMARY SCHOOL
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 4 -
Trustees' indemnities

Staff Associate Trustees:

H Ward

 

Senior Management Team:

Method of recruitment and appointment or election of Trustees

Parent trustees are elected by parents of registered pupils at the academy, by secret ballot. A parent trustee must be a parent or guardian of a pupil at the academy at the time when they are elected. Trustees are nominated and appointed by the trustees via a recruitment and selection process and then a formal vote at a full Trustee Board meeting.

 

None of the Trustees have any beneficial interest in the company.

Policies and procedures adopted for the induction and training of Trustees

Trustees receive in house induction training from the Chair of Trustees and the Clerk to Trustees, they also receive a bespoke training manual, written for the academy. New and established trustees can attend a variety of training provided by Peterborough City Council specifically for trustees.

Organisational structure

The Full Trustee Board meets 5 times per year, the Finance & Stewardship Committee meets 5 times a year, the Audit & Risk Committee meets 4 times a year; the Staffing Committee meets 3 times a year and Curriculum Committee meets 4 times a year. All committees provide a report of discussions at the next Full Trustee Board meeting. The Trustee Board delegates duties to the committees, including the approval of policies and procedures specific to that committee. The Trustee Board use a delegated decision planner to delegate tasks of daily management to the Principal and senior management team. The task of accounting officer has been delegated to the Principal. There are no related party transactions during this financial year.

 

The Trustees' are responsible for identifying risks faced by the charitable company, establishing procedures to mitigate these risks, and ensuring that employees are aware of these procedures and of the implications of failing to implement them. They are satisfied that these procedures are consistent with the guidelines issued by the Charity Commission.

 

The Trustees' acknowledge they have overall responsibility for ensuring that the academy trust has an effective and appropriate system of controls, financial and otherwise. The Trustees are also responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the academy trust and enable them to ensure the financial statements comply with the Companies Act. The Trustees' 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 MALCOLM SARGENT PRIMARY SCHOOL
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 5 -
Arrangements for setting pay and remuneration of key management personnel

The arrangements for setting pay and remuneration are detailed within the Whole School Pay Policy. It is determined and agreed post staff consultation by the Pay Review Committee (Trustees) on an annual basis. The Whole School Pay Policy provides the framework for making decisions regarding pay for all employees of the School (including Key Management Personnel), aligns to the STPC document and current legislation. The policy details pay determination on appointment, pay reviews, pay progression based on performance, determination of Leadership Group salaries, the staffing structure and salary scales.

 

The annual appraisal process continues to provide an essential vehicle to be used in determining pay, and final ratings offer the platform required for “fair, equal and consistent” pay determination. Under the current appraisal system, all staff are assessed during the academic year with a final performance rating being agreed towards the end of the Summer Term.

 

Risk management

The Trustees' continually monitor and review systems and procedures to ensure that major risks are identified and managed. Within the current period, which spans from 1 September 2023 to 31 August 2024, the Academy worked in line with policies, procedures and protocols having evaluated risk and management structure during the previous financial year. Estates Management is included within this as a key part of the process to ensure that the Academy estate is well managed, our activities are conducted appropriately; providing a safe and secure environment for all staff, pupils, and visitors. This included a risk management review to ensure high level risks have adequate controls in place. Key controls to manage risk include:

 

· Agendas for all committee meetings

· Committee charters for all committees

· Strategic planning, budgeting and management reporting

· Formal organisational structure for staffing

· Written policies and procedures, which follow a full review cycle

· Authorisation and approval levels

· Appointment of Audit committee

· DBS Checks and Single Central Record

· Management Planning and Risk Management Strategy

· Risk registers

· Risk assessments for fire, legionella, and asbestos

· Property plan for significant maintenance, capital works and repairs covering multiple years.

Trade union facility time
The school does not have any staff who are relevant trade union officials during the current year. The school contributes to the local authority's arrangements for trade union facility time.
Related parties and other connected charities and organisations

The related party transactions that occurred within the financial year were between Malcolm Sargent Primary School and Acorn Childcare Centre, its subsidiary company.

 

Objectives and activities
Objects and aims

The objective of the charitable company in the period under review was to advance for the public benefit education in the United Kingdom by establishing, maintaining, carrying on, managing and developing a school offering a broad and balanced curriculum. To promote for the benefit of the inhabitants of Stamford and the surrounding area the provision of facilities for recreation or leisure time occupation of individuals who have need of such facilities by reason of their youth, age, infirmity or disablement, financial hardship or social and economic circumstances or for the public at large in the interests of social welfare and with the object of improving the condition of life of the said inhabitants.

Public benefit

The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charitable company's objectives and aims and in planning future activities for the year.

THE MALCOLM SARGENT PRIMARY SCHOOL
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 6 -
Strategic report
Achievements and performance

The main objective of the academy has been to ensure that the curriculum is broad and exciting which will challenge all of our children to achieve their full potential, through consistently high quality teaching. This has been achieved with very high progress & attainment outcomes as in previous years, placing the school in the top group of consistently high achieving schools nationally. The Trustees have focussed on further developing the effectiveness of their framework of policies & procedures- particularly the use of indicators & benchmark information to benefit risk management of the setting.

 

A successful SDP has been achieved in all three core priorities, with further evaluation below:

  1. Curriculum Success for All Pupils: focus on further improving pupils learning in every subject by ensuring that English/Maths is not a barrier to their usccess, whatever their need (SEND/EAL/Dis)

  2. Even better writing: Continuing to embed high quality teaching of writing - particularly improving opportunities for able pupils to apply what they have learnt independently.

  3. Even better Reading: refining the approach to the teaching of Reading- particularly the teaching of comprehensive skills.

 

Evaluation of SDP Work:-

1. Curriculum Success for All Pupils:

Significant success has been achieved in the raised profile of pupil achievement in foundation subjects. Class teachers are conducting appropriate assessments at regular intervals for all foundation subjects. They are mindful of those with potential barriers & are able to adapt their teaching accordingly. Subject leaders are using teachers assessments to help evaluate progress in the curriculum, with consequent flags for training development or refinement of planning. We also identified further work required on developing teacher confidence in use of assessments in foundation subjects. The "Get Set" tracking system was identified as a barrier to improvement & replaced, however this too requires further training.

 

Recommendation: Continue as a core priority for 2024/25, building on the good work this year. Focus on further improving pupil achievement in every (foundation) subject whatever barrier might exist for pupils; (SEND/EAL/DisPP).

Adaptive teaching will enable even better curriculum success, particularly for vulnerable pupils.

 

2. Even better Writing:

Pupils continue to make significant strides in their Writing, thanks to the embedding of the agreed teaching approach. This has been exemplified by sustained success as measured by end of year assessments in 2024; (validated by external moderation checks). This reflects considerable work by the team in consolidating the school's adopted approach to the teaching of this subject.

 

Recommendation: The new subject leader for 2024/25 will monitor the teaching of writing with a particular focus on training/upskilling new members of the teaching team AND promoting teachers' incorporation of challenge for potentially GDS pupils to apply their learning independently. In a similar manner to reading, fidelity to the "active ingredients" of the school's approach is key, whilst the most effective staff will adapt & augment this to elicit the very best progress for pupils. All staff will be encouraged & supported to make these adjustments adapting their teaching as necessary.

 

3. Even better Reading:

The teaching of Reading is strong across the school- marked by successfully achieving KPI targets from phonic acquisition by our youngest pupils through to Y6 SAT scores in Comprehension. However, further improvements are possible by building upon this strong base- ensuring fidelity to the agreed approach augmented by intelligent adaptation for individuals where necessary. For example we have enabled exceptional progress for some pupils even with minimal baseline scores to be successful & achieve Age Related Expectations (ARE) by the end of an academic year. Our ambition is therefore to enable all pupils to make such progress- for example in 100% of our pupils to achieve the phonics check pass in Y1.

 

THE MALCOLM SARGENT PRIMARY SCHOOL
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 7 -

Recommendation: continue as a core priority maintaining quality first teaching of phonics, fluency & comprehension in the agreed approaches. Ensure new staff are well trained & closely monitor pupils' progress. Whilst checking on fidelity to the scheme, senior staff to encourage & help disseminate effective intelligent adaptation of how this is implemented, when it is proven to benefit pupils' accelerated progress. The approach for individual pupils to rapidly "catch-up" with their ARE skills such as in phonics/fluency & comprehension will continue to be refined- such as in “catch-up” phonic work for those individuals that don’t pass first time; fluency work for pupils finishing the phonics programme; and the teaching of comprehension skills.

 

School Council: The school council continued to organise fund raising events across the year for charity, examples include through a talent show, non-uniform day, readathon and baking event. They have also raised funds to purchase playground equipment and more books for the school library. This year they plan to raise funds to buy similar items.

Key performance indicators
THE MALCOLM SARGENT PRIMARY SCHOOL
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 8 -
Going concern

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

 

During this financial year Malcolm Sargent’s trading arm Acorn Childcare Centre Limited has continued to trade. This organisation operates under Directors appointed by the Trustees of the academy trust. Acorn Childcare Centre started trading from the 5 of September 2013, operating 51 weeks of the year. It has expanded in recent years with a new building being added to site, which now provides a nursery setting with capacity for 21 babies,18 toddlers and 56 pre-school children. Acorn centre staff also operate the Breakfast, Afterschool and Holiday Club. The Acorn Childcare Centre operates under a separate Ofsted registration. The finances from this operation are consolidated within these accounts.

Financial review
Reserves policy

The level of reserves held takes into account the nature of income and expenditure streams, the need to match them with commitments including future capital projects and the nature of reserves.

 

The Trustees have reviewed the resources of the academy trust and recognise the need to build up sufficient reserves in future years to be able to protect against future funding decreases and for future refurbishment works required at the school to be able to adequately cater for pupils.

 

The Trustees have set a reserves policy whereby the ideal level of reserves is set at one month of expenditure. The Trustees have assessed the current level of available free reserves, which currently equates to around 53 days of expenditure, and are confident that there are sufficient levels to meet current operational needs, and ensuring adequate cashflow throughout the year.

Investment policy

The academy has not accumulated significant reserves, finances from the ESFA are utilised in year for the benefit of the children attending the academy and therefore there is no investment policy in place. The academy can hold cash balances and thereby technically can make investment decisions if they are appropriate. In the current economic climate the banks are unable to offer a significant return on the current cash balances.

Principal risks and uncertainties

Risks have been assessed by the governors and they confirm that there are no major risks at present. The Business Continuity and Risk Management Policy has just been reviewed and approved by the Governing Board. Principle risks faced by the academy include closure from fire or disaster, cuts in funding from the EFSA impacting on the whole school, which could seriously affect the viability or reputation of the academy. Systems and procedures are in place to minimize the risk. Internal controls are in place to reduce internal risks to the continuation of business, these are monitored and reviewed on a regular basis.

THE MALCOLM SARGENT PRIMARY SCHOOL
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 9 -
Fundraising

The Academy is compliant with the recognised standards of fundraising set out in the Code of Fundraising Practice. The Malcolm Sargent Primary School 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

Trustees have already prepared the objectives for the school development plan (SDP) for the current financial year. This will be reviewed at the full Trustee Board meetings and informed by the work of an independent Education Advisor. We are mindful of the continuing legacy of the global pandemic impacting upon our pupils & incorporating mitigation for this as far as practicable within our plans.

 

We have identified the following core priorities for 2024 - 2025, through our performance review & evaluation:

 

  1. Even Better Maths: focus on consistency of teaching strategies & approach across every class & how this then translates into the effective application of these skills by pupils. Staff make intelligent adaptation to the delivery of this Maths curriculum to ensure that individuals make the best progress possible - both challenging & supporting effectively.

  2. Even Better Literacy: In Reading & Writing from emerging skills through to fluency: Ensuring the fidelity of the approach to quality first teaching of Reading & Writing at each stage, staff enable pupils to effectively progress through three stages to suceed. Adaptive teaching supplements this core programme of learning as neccessary to ensure strong outcomes for individuals.

  3. Curriculum success for all pupils: further improving pupils learning in every subject, whatever their need (SEND/EAL/Dis), or potential barrier - by ensuring that teaching of the wider curriculum is accessible, inspiring & motivating for all pupils.

 

We are continuing to work towards ambitious targets for our most disadvantaged pupils, through our Pupil Premium strategy. This continues to be the group most disadvantaged by the legacy of the disruption caused by the global pandemic.

 

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 03 December 2024 and signed on its behalf by:

K E Swanson
Chair of Trustees
THE MALCOLM SARGENT PRIMARY SCHOOL
GOVERNANCE STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024
- 10 -
Scope of responsibility

As Trustees, we acknowledge we have overall responsibility for ensuring that The Malcolm Sargent Primary School 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 Trustee Board has delegated the day-to-day responsibility to the Principal, as accounting officer, he is responsible for ensuring financial controls conform with the requirements of both propriety and good financial management and in accordance with the requirements and responsibilities assigned to it in the funding agreement between The Malcolm Sargent Primary School and the Secretary of State for Education. They are also responsible for reporting to the Trustee Board 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 5 times during the year. Attendance during the year at meetings of the board of trustees was as follows:

 

Trustees
Meetings attended
Out of possible
K E Swanson (Chair of Trustees)
5
5
M Brewin (Resigned 19 September 2024)
3
5
T J Revell (Accounting Officer)
5
5
S Gaunt (Resigned 2 September 2023)
0
0
J Shaw
3
5
A Donaghie
4
5
G Brown
3
5
T Perkins (Resigned 18 October 2023)
0
1
J Flint
3
5
L Steele
3
5
A Thomas
5
5
J Williamson
4
5
P Collins (Appointed 1 September 2023)
3
5
R Amies (Appointed 2 October 2023)
4
4
J Torrance (Appointed 2 October 2023)
4
4

Significant further roles within the composition of the board:

A Thomas (Vice Chair FTB)

J Shaw (Chair Finance & Stewardship Committee)

P Collins (Chair Audit & Risk Committee)

L Steele (Chair Staffing Committee)

J Flint ( Chair Curriculum Committee)

A Donaghie (Safeguarding Link Trustee)

J Williamson (SEND Link Trustee)

P Collins (PPG Link Trustee)

M Brewin (Healthy & Safety Link Trustee)

THE MALCOLM SARGENT PRIMARY SCHOOL
GOVERNANCE STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 11 -

The board can confirm that it has completed it’s governance obligations in line with the requirements of the Academies Handbook. Key duties of the trust:

 

- The board has self-assessed it’s own effectiveness, including undertaking surveys to sample the views of staff, pupils & parents, has undertaken appropriate individual training

 

- The board has regular updates on key performance indicators. Trustee visits help sample the day-to-day experience of the pupils & check on the operational work necessary to achieve these. Trustees work is assisted by an independent Education Advisor appointed by the board. This is supplemented by external independent feedback, which is made available to the Trustees, e.g. by Ofsted, the DfE or LCC etc. The board regularly reviews the data available and finds this acceptable

 

In the future the board will be commissioning an independent external review, as part of its programme of self-assessment.

Attendance at the Finance & Stewardship meetings in the year was as follows:

Trustees
Meetings attended
Out of possible
K E Swanson (Chair of Trustees)
5
5
T J Revell (Accounting Officer)
5
5
S Gaunt (Resigned 2 September 2023)
0
0
J Shaw
5
5
G Brown
3
5
P Collins (Appointed 1 September 2023)
5
5
R Amies (Appointed 2 October 2023)
4
4
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, as well as estates safety and management achieved, with the resources available in return for the taxpayer resources received.

THE MALCOLM SARGENT PRIMARY SCHOOL
GOVERNANCE STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 12 -

The accounting officer considers how the 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 school’s latest DfE financial benchmark report gives the top 10% rating for best value for money.

 

The accounting officer for the academy trust has delivered improved value for money during the year by:

 

The purpose of the system of internal control

The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk of failure to achieve policies, aims and objectives. It can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an on-going process designed to identify and prioritise the risks to the achievement of academy trust policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically. The system of internal control has been in place in The Malcolm Sargent Primary School for the period 1 September 2023 to 31 August 2024 and up to the date of approval of the annual report and accounts.

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, through the Finance ann Stewardship committee where the Audit Committee reports are shared.

The risk and control framework

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

The Trustee Board has considered the need for a specific internal audit function and has decided to appoint an internal auditor.

 

Our trust can confirm that the firm of professional internal auditors Duncan & Toplis has delivered their schedule of work as planned, and results have been reported to the board. There are no material control issues arising as a result of the internal auditor’s work.

THE MALCOLM SARGENT PRIMARY SCHOOL
GOVERNANCE STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 13 -
Review of effectiveness

As Accounting Officer, the Principal, T Revell has responsibility for reviewing the effectiveness of the system of internal control. During the period 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 Stewardship Committee and a plan to address weaknesses and ensure continuous improvement of the system is in place.

Approved by order of the board of trustees on 03 December 2024 and signed on its behalf by:

K E Swanson
T J Revell
Chair of Trustees
Accounting Officer
THE MALCOLM SARGENT PRIMARY SCHOOL
STATEMENT OF REGULARITY, PROPRIETY AND COMPLIANCE
FOR THE YEAR ENDED 31 AUGUST 2024
- 14 -

As accounting officer of The Malcolm Sargent Primary School, 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.

T J Revell
Accounting Officer
03 December 2024
THE MALCOLM SARGENT PRIMARY SCHOOL
STATEMENT OF TRUSTEES' RESPONSIBILITIES
FOR THE YEAR ENDED 31 AUGUST 2024
- 15 -

The trustees (who are also the directors of The Malcolm Sargent Primary School 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 03 December 2024 and signed on its behalf by:

K E Swanson
Chair of Trustees
THE MALCOLM SARGENT PRIMARY SCHOOL
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE MALCOLM SARGENT PRIMARY SCHOOL
FOR THE YEAR ENDED 31 AUGUST 2024
- 16 -

Opinion

We have audited the accounts of The Malcolm Sargent Primary School (the 'charity') and its subsidiary for the year ended 31 August 2024 which comprise the Group statement of financial activities, the Group and Parent Charitable Company balance sheet, the Group statement of cash flows and the notes to the accounts, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice), the Charities SORP 2019 and the Academies Accounts Direction 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 Group and Parent charitable company's affairs as at 31 August 2024 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

-

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;

-

have been prepared in accordance with the requirements of the Companies Act 2006; and

-

have been prepared in accordance with the Charities SORP 2019 and the Academies Accounts Direction 2023 to 2024.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 'Auditor's responsibilities for the audit of the accounts' section of our report. We are independent of the academy trust in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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.

THE MALCOLM SARGENT PRIMARY SCHOOL
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE MALCOLM SARGENT PRIMARY SCHOOL (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 17 -
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, its subsidiary 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.

-

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.

THE MALCOLM SARGENT PRIMARY SCHOOL
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE MALCOLM SARGENT PRIMARY SCHOOL (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 18 -

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.

Tracey Richardson BSc (Hons) FCA (Senior Statutory Auditor)
for and on behalf of Azets Audit Services
9 December 2024
Chartered Accountants
Statutory Auditor
Westpoint
Lynch Wood
Peterborough
Cambridgeshire
PE2 6FZ
THE MALCOLM SARGENT PRIMARY SCHOOL
INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO THE MALCOLM SARGENT PRIMARY SCHOOL AND THE EDUCATION AND SKILLS FUNDING AGENCY
FOR THE YEAR ENDED 31 AUGUST 2024
- 19 -

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 The Malcolm Sargent Primary School during the period 1 September 2023 to 31 August 2024 have been applied to the purposes identified by Parliament and the financial transactions conform to the authorities which govern them.

 

This report is made solely to The Malcolm Sargent Primary School and ESFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to the The Malcolm Sargent Primary School and ESFA those matters we are required to state in a report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than The Malcolm Sargent Primary School and ESFA, for our work, for this report, or for the conclusion we have formed.

Respective responsibilities of The Malcolm Sargent Primary School's accounting officer and the reporting accountant

The accounting officer is responsible, under the requirements of The Malcolm Sargent Primary School’s funding agreement with the Secretary of State for Education dated 1 December 2011 and the Academies 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:

 

THE MALCOLM SARGENT PRIMARY SCHOOL
INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO THE MALCOLM SARGENT PRIMARY SCHOOL AND THE EDUCATION AND SKILLS FUNDING AGENCY (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 20 -
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: 09 December 2024
THE MALCOLM SARGENT PRIMARY SCHOOL
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2024
- 21 -
Unrestricted
Restricted funds:
Total
Total
funds
General
Fixed asset
2024
2023
Notes
£
£
£
£
£
Income and endowments from:
Donations and capital grants
3
-
-
11,380
11,380
34,075
Charitable activities:
- Funding for educational operations
4
37,265
3,706,469
-
3,743,734
3,572,455
Other trading activities
5
1,160,008
53,901
-
1,213,909
1,017,624
Investments
6
5,270
-
-
5,270
40
Total
1,202,543
3,760,370
11,380
4,974,293
4,624,194
Expenditure on:
Raising funds
7
794,413
-
-
794,413
703,831
Charitable activities:
- Educational operations
8
71,290
3,846,202
151,719
4,069,211
4,062,797
Total
7
865,703
3,846,202
151,719
4,863,624
4,766,628
Net income/(expenditure)
336,840
(85,832)
(140,339)
110,669
(142,434)
Transfers between funds
20
(231,609)
204,832
26,777
-
-
Other recognised gains/(losses)
Actuarial gains on defined benefit pension schemes
21
-
131,000
-
131,000
561,000
Adjustment for restriction on pension assets
21
-
(250,000)
-
(250,000)
(520,000)
Net movement in funds
105,231
-
(113,562)
(8,331)
(101,434)
Reconciliation of funds
Total funds brought forward
442,223
-
3,232,764
3,674,987
3,776,421
Total funds carried forward
547,454
-
3,119,202
3,666,656
3,674,987
THE MALCOLM SARGENT PRIMARY SCHOOL
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED)
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2024
- 22 -
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
-
-
34,075
34,075
Charitable activities:
- Funding for educational operations
4
42,003
3,530,452
-
3,572,455
Other trading activities
5
961,633
55,991
-
1,017,624
Investments
6
40
-
-
40
Total
1,003,676
3,586,443
34,075
4,624,194
Expenditure on:
Raising funds
7
703,831
-
-
703,831
Charitable activities:
- Educational operations
8
115,376
3,799,675
147,746
4,062,797
Total
7
819,207
3,799,675
147,746
4,766,628
Net income/(expenditure)
184,469
(213,232)
(113,671)
(142,434)
Transfers between funds
20
(232,646)
172,232
60,414
-
Other recognised gains/(losses)
Actuarial gains on defined benefit pension schemes
21
-
561,000
-
561,000
Adjustment for restriction on pension assets
21
-
(520,000)
-
(520,000)
Net movement in funds
(48,177)
-
(53,257)
(101,434)
Reconciliation of funds
Total funds brought forward
490,400
-
3,286,021
3,776,421
Total funds carried forward
442,223
-
3,232,764
3,674,987
THE MALCOLM SARGENT PRIMARY SCHOOL
CONSOLIDATED BALANCE SHEET
AS AT 31 AUGUST 2024
- 23 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
13
-
526
Tangible assets
14
3,119,202
3,232,238
3,119,202
3,232,764
Current assets
Debtors
17
266,221
195,520
Cash at bank and in hand
633,547
600,883
899,768
796,403
Current liabilities
Creditors: amounts falling due within one year
18
(352,314)
(354,180)
Net current assets
547,454
442,223
Net assets
3,666,656
3,674,987
Funds of the academy trust:
Restricted funds
20
- Fixed asset funds
3,119,202
3,232,764
Total restricted funds
3,119,202
3,232,764
Unrestricted income funds
20
547,454
442,223
Total funds
3,666,656
3,674,987

As permitted by s408 Companies Act 2006, the academy trust has not presented its own statement of financial activities and related notes. The academy trust's deficit for the year was £5,763 (2023: £284,918).

 

The accounts on pages 21 to 46 were approved by the Trustees and authorised for issue on 03 December 2024 and are signed on their behalf by:

K E Swanson
Chair of Trustees
Company Number 07838151
THE MALCOLM SARGENT PRIMARY SCHOOL
BALANCE SHEET - CHARITY ONLY
AS AT 31 AUGUST 2024
- 24 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
13
-
526
Tangible assets
14
3,112,921
3,224,848
Investments
16
10
10
3,112,931
3,225,384
Current assets
Debtors
17
313,970
326,214
Cash at bank and in hand
474,276
384,302
788,246
710,516
Current liabilities
Creditors: amounts falling due within one year
18
(236,803)
(265,760)
Net current assets
551,443
444,756
Net assets
3,664,374
3,670,140
Funds of the academy trust:
Restricted funds
20
- Fixed asset funds
3,112,921
3,225,374
Total restricted funds
3,112,921
3,225,374
Unrestricted income funds
20
551,453
444,766
Total funds
3,664,374
3,670,140

As permitted by s408 Companies Act 2006, the academy trust has not presented its own statement of financial activities and related notes. The academy trust's deficit for the year was £5,763 (2023: £284,918).

 

The accounts on pages 21 to 46 were approved by the Trustees and authorised for issue on 03 December 2024 and are signed on their behalf by:

K E Swanson
Chair of Trustees
Company Number 07838151
THE MALCOLM SARGENT PRIMARY SCHOOL
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024
- 25 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Net cash provided by/(used in) operating activities
23
54,171
(116,120)
Cash flows from investing activities
Dividends, interest and rents from investments
5,270
40
Capital grants from DfE Group
11,380
34,075
Purchase of tangible fixed assets
(38,157)
(94,489)
Net cash used in investing activities
(21,507)
(60,374)
Net increase/(decrease) in cash and cash equivalents in the reporting period
32,664
(176,494)
Cash and cash equivalents at beginning of the year
600,883
777,377
Cash and cash equivalents at end of the year
633,547
600,883
Relating to:
Bank and cash balances
430,038
600,883
Short term deposits
203,509
-
THE MALCOLM SARGENT PRIMARY SCHOOL
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 26 -
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.

 

The Malcolm Sargent Primary School meets the definition of a public benefit entity under FRS 102.

 

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

1.2
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.

THE MALCOLM SARGENT PRIMARY SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 27 -
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
Intangible fixed assets and amortisation

Intangible assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Intangible assets are initially recognised at cost and are subsequently measured at cost net of amortisation and any provision for impairment.

 

Amortisation is provided on intangible fixed assets at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life, as follows:

 

Purchased computer software         3 years straight line

THE MALCOLM SARGENT PRIMARY SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 28 -
1.6
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.

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:

Freehold buildings
50, 25 or 5 years straight line
Leasehold property
Over the lease term
IT equipment
3 or 5 years straight line
Fixtures, fittings & equipment
5 years straight line

No depreciation is provided in respect of freehold land.

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.

1.7
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.

1.8
Leased assets

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

1.9
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.

THE MALCOLM SARGENT PRIMARY SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 29 -
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.

1.10
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 Education and Skills Funding Agency/Department for Education where the asset acquired or created is held for a specific purpose.

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

 

Designated funds are where the governors have ring fenced unrestricted income for specific projects.

THE MALCOLM SARGENT PRIMARY SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 30 -
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.

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 21, 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
-
11,380
11,380
34,075
THE MALCOLM SARGENT PRIMARY SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 31 -
4
Funding for the academy trust's educational operations
Unrestricted
Restricted
Total
Total
funds
funds
2024
2023
£
£
£
£
DfE/ESFA grants
General annual grant (GAG)
-
2,880,870
2,880,870
2,746,660
Other DfE/ESFA grants:
- UIFSM
-
105,514
105,514
93,412
- Pupil premium
-
147,608
147,608
136,506
- PE and sports premium
-
21,660
21,660
21,570
- Supplementary grant
-
-
-
110,726
- Mainstream school additional grant
-
91,280
91,280
-
- Teachers pay grant
-
47,177
47,177
-
- Others
-
65,542
65,542
44,576
-
3,359,651
3,359,651
3,153,450
Other government grants
Local authority grants
-
330,313
330,313
357,066
Other incoming resources
37,265
16,505
53,770
61,939
Total funding
37,265
3,706,469
3,743,734
3,572,455
5
Other trading activities
Unrestricted
Restricted
Total
Total
funds
funds
2024
2023
£
£
£
£
Lettings
500
-
500
-
Catering income
33,986
-
33,986
4,609
Income from trading subsidiary
1,125,522
-
1,125,522
957,024
Other income
-
53,901
53,901
55,991
1,160,008
53,901
1,213,909
1,017,624
6
Investment income
Unrestricted
Restricted
Total
Total
funds
funds
2024
2023
£
£
£
£
Short term deposits
5,270
-
5,270
40
THE MALCOLM SARGENT PRIMARY SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 32 -
7
Expenditure
Non-pay expenditure
Total
Total
Staff costs
Premises
Other
2024
2023
£
£
£
£
£
Expenditure on raising funds
- Direct costs
-
-
794,413
794,413
703,831
Academy's educational operations
- Direct costs
1,691,840
-
228,942
1,920,782
1,756,458
- Allocated support costs
1,594,252
379,827
174,350
2,148,429
2,306,339
3,286,092
379,827
1,197,705
4,863,624
4,766,628
Net expenditure for the year includes:
2024
2023
£
£
Fees payable to auditor for audit services
9,530
9,075
Depreciation of tangible fixed assets
151,719
147,746
Net interest on defined benefit pension liability
(48,000)
(15,000)
8
Charitable activities
Unrestricted
Restricted
Total
Total
funds
funds
2024
2023
£
£
£
£
Direct costs
Educational operations
54,456
1,866,326
1,920,782
1,756,458
Support costs
Educational operations
16,834
2,131,595
2,148,429
2,306,339
71,290
3,997,921
4,069,211
4,062,797
Analysis of costs
2024
2023
£
£
Direct costs
Teaching costs
1,691,840
1,509,657
Staff development
14,758
16,703
Technology costs
47,173
37,199
Educational supplies and services
55,318
82,677
Other direct costs
111,693
110,222
1,920,782
1,756,458
THE MALCOLM SARGENT PRIMARY SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
8
Charitable activities
(Continued)
- 33 -
Support costs
Support staff costs
1,596,023
1,751,421
Depreciation
151,719
147,746
Maintenance of premises and equipment
63,173
85,184
Rent, rates and other occupancy costs
132,958
104,636
Insurance
31,977
29,702
Catering
143,375
127,763
Finance costs
(48,000)
(15,000)
Legal costs
16,058
13,478
Other support costs
50,466
51,334
Governance costs
10,680
10,075
2,148,429
2,306,339
9
Governance costs
Total
Total
All from restricted funds:
2024
2023
£
£
Amounts included in support costs
Legal costs
16,058
13,478
Auditor's remuneration
- Audit of financial statements
9,530
9,075
- Other audit costs
1,150
1,000
26,738
23,553
10
Staff
Staff costs and employee benefits
Staff costs during the year were:
2024
2023
£
£
Wages and salaries
2,459,931
2,402,942
Social security costs
211,735
211,782
Pension costs
531,097
612,973
Staff costs - employees
3,202,763
3,227,697
Agency staff costs
83,329
28,339
3,286,092
3,256,036
Staff development and other staff costs
16,529
21,745
Total staff expenditure
3,302,621
3,277,781
THE MALCOLM SARGENT PRIMARY SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
10
Staff
(Continued)
- 34 -
Staff numbers
The average number of persons employed by the academy trust during the year was as follows:
2024
2023
Number
Number
Teachers
30
30
Administration and support
67
72
Management
6
6
103
108
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
£60,001 - £70,000
-
1
£70,001 - £80,000
1
-
£100,001 - £110,000
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 employee benefits (including employer pension contributions and employer national insurance contributions) received by key management personnel for their services to the academy trust was £472,372 (2023: £445,370).

THE MALCOLM SARGENT PRIMARY SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 35 -
11
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:

 

T Revell (principal and trustee)

    Remuneration £105,000 - £110,000 (2023: £100,000 - £105,000)

    Employer’s pension contributions £25,000 - £30,000 (2023: £20,000 - £25,000)

M Town (staff trustee) - Resigned 26 June 2023

    Remuneration £Nil (2023: £35,000 - £40,000)

    Employer’s pension contributions £Nil (2023: £5,000 - £10,000)

During the year ended 31 August 2024, expenses totalling £Nil were reimbursed to staff governors in relation to their role as governor (2023: £Nil).

12
Trustees' and officers' insurance

The academy trust has opted into the Department for Education's risk protection arrangement (RPA), an alternative to insurance where UK government funds cover losses that arise. This scheme protects trustees and officers from claims arising from negligent acts, errors or omissions occurring whilst on academy business, and provides cover up to £10,000,000. It is not possible to quantify the trustees and officers indemnity element from the overall cost of the RPA scheme.

13
Intangible fixed assets
Computer software
£
Cost
At 1 September 2023 and at 31 August 2024
3,712
Amortisation
At 1 September 2023
3,186
Charge for year
526
At 31 August 2024
3,712
Carrying amount
At 31 August 2024
-
At 31 August 2023
526
THE MALCOLM SARGENT PRIMARY SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 36 -
14
Tangible fixed assets
Group
Freehold buildings
Leasehold property
IT equipment
Fixtures, fittings & equipment
Total
£
£
£
£
£
Cost
At 1 September 2023
3,673,600
69,316
148,818
278,515
4,170,249
Additions
-
-
12,654
25,503
38,157
At 31 August 2024
3,673,600
69,316
161,472
304,018
4,208,406
Depreciation
At 1 September 2023
646,858
69,316
90,691
131,146
938,011
Charge for the year
87,855
-
20,251
43,087
151,193
At 31 August 2024
734,713
69,316
110,942
174,233
1,089,204
Net book value
At 31 August 2024
2,938,887
-
50,530
129,785
3,119,202
At 31 August 2023
3,026,742
-
58,127
147,369
3,232,238
Charity
Freehold buildings
Leasehold property
IT equipment
Fixtures, fittings & equipment
Total
£
£
£
£
£
Cost
At 1 September 2023
3,673,600
69,316
141,788
266,662
4,151,366
Additions
-
-
12,654
25,503
38,157
At 31 August 2024
3,673,600
69,316
154,442
292,165
4,189,523
Depreciation
At 1 September 2023
646,858
69,316
87,365
122,979
926,518
Charge for the year
87,855
-
19,734
42,495
150,084
At 31 August 2024
734,713
69,316
107,099
165,474
1,076,602
Net book value
At 31 August 2024
2,938,887
-
47,343
126,691
3,112,921
At 31 August 2023
3,026,742
-
54,423
143,683
3,224,848
THE MALCOLM SARGENT PRIMARY SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 37 -
15
Financial instruments
2024
2024
2023
2023
£
£
£
£
Group
Charity
Group
Charity
Carrying amount of financial assets
Trade debtors
9,147
-
5,098
-
Other debtors
-
-
557
557
Bank and cash
633,547
474,276
600,883
384,303
642,694
474,276
606,538
384,860
Carrying amount of financial liabilities
Trade creditors
56,215
35,417
44,260
36,256
Other creditors
7,945
78
4,644
176
Accruals
103,314
81,797
136,071
116,527
167,474
117,292
184,975
152,959
16
Fixed asset investments
Charity
Total
£
Historical cost:
At 31 August 2024
10
At 31 August 2023
10

On 23 April 2013, Acorn Childcare Centre Limited was incorporated and became a wholly owned subsidiary of the academy. The company commenced trading as Acorn Nursery on 5 September 2013, the principal activity being the provision of childcare.

17
Debtors
2024
2024
2023
2023
£
£
£
£
Group
Charity
Group
Charity
Trade debtors
9,147
-
5,098
-
Amounts owed by group undertakings
-
112,000
-
182,000
VAT recoverable
16,570
16,570
23,162
23,162
Other debtors
-
-
557
557
Prepayments and accrued income
240,504
185,400
166,703
120,495
266,221
313,970
195,520
326,214
THE MALCOLM SARGENT PRIMARY SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 38 -
18
Creditors: amounts falling due within one year
2024
2024
2023
2023
£
£
£
£
Group
Charity
Group
Charity
Trade creditors
56,215
35,417
44,260
36,256
Other taxation and social security
58,309
47,289
51,854
43,769
Other creditors
7,945
78
4,644
176
Accruals and deferred income
229,845
154,019
253,422
185,559
352,314
236,803
354,180
265,760
19
Deferred income
Group
2024
2023
£
£
Deferred income is included within:
Creditors due within one year
126,531
117,351
Deferred income at 1 September 2023
117,351
122,154
Released from previous years
(117,351)
(122,154)
Amounts deferred in the year
126,531
117,351
Deferred income at 31 August 2024
126,531
117,351
Charity
2024
2023
£
£
Deferred income is included within:
Creditors due within one year
72,222
69,032
Deferred income at 1 September 2023
69,032
60,263
Released from previous years
(69,032)
(60,263)
Amounts deferred in the year
72,222
69,032
Deferred income at 31 August 2024
72,222
69,032

Deferred income relates to funds received in advance for school trips taking place after the balance sheet date and grant funding for the following academic year.

THE MALCOLM SARGENT PRIMARY SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 39 -
20
Funds
Balance at
Gains,
Balance at
1 September
losses and
31 August
2023
Income
Expenditure
transfers
2024
£
£
£
£
£
Restricted general funds
General Annual Grant (GAG)
-
2,880,870
(3,085,702)
204,832
-
UIFSM
-
105,514
(105,514)
-
-
Pupil premium
-
147,608
(147,608)
-
-
Other DfE/ESFA grants
-
225,659
(225,659)
-
-
Other government grants
-
330,313
(330,313)
-
-
Other restricted funds
-
70,406
(70,406)
-
-
Pension reserve
-
-
119,000
(119,000)
-
-
3,760,370
(3,846,202)
85,832
-
Restricted fixed asset funds
DfE group capital grants
-
11,380
-
(11,380)
-
Capital expenditure from GAG
3,225,374
-
(150,610)
38,157
3,112,921
Subsidiary company assets
7,390
-
(1,109)
-
6,281
3,232,764
11,380
(151,719)
26,777
3,119,202
Total restricted funds
3,232,764
3,771,750
(3,997,921)
112,609
3,119,202
Unrestricted funds
General funds
444,766
77,021
(59,981)
89,647
551,453
Acorn nursery
(2,543)
1,125,522
(805,722)
(321,256)
(3,999)
442,223
1,202,543
(865,703)
(231,609)
547,454
Total funds
3,674,987
4,974,293
(4,863,624)
(119,000)
3,666,656

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

 

Fixed asset funds

The fixed asset fund represents the book value of fixed assets held by the academy, which are attributable to the core educational operations of the academy.

 

Restricted general funds

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.

 

Designated funds

The funds are designated for the specific activities undertaken by Acorn Nursery.

THE MALCOLM SARGENT PRIMARY SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
20
Funds
(Continued)
- 40 -
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)
-
2,746,660
(2,918,892)
172,232
-
UIFSM
-
93,412
(93,412)
-
-
Pupil premium
-
136,506
(136,506)
-
-
Supplementary grant
-
110,726
(110,726)
-
-
Other DfE/ESFA grants
-
64,646
(64,646)
-
-
Other government grants
-
357,066
(357,066)
-
-
Other restricted funds
-
77,427
(77,427)
-
-
Pension reserve
-
-
(41,000)
41,000
-
-
3,586,443
(3,799,675)
213,232
-
Restricted fixed asset funds
DfE group capital grants
-
34,075
-
(34,075)
-
Capital expenditure from GAG
3,278,765
-
(146,521)
93,130
3,225,374
Subsidiary company assets
7,256
-
(1,225)
1,359
7,390
3,286,021
34,075
(147,746)
60,414
3,232,764
Total restricted funds
3,286,021
3,620,518
(3,947,421)
273,646
3,232,764
Unrestricted funds
General funds
494,293
45,152
(115,376)
20,697
444,766
Acorn nursery
(3,893)
958,524
(703,831)
(253,343)
(2,543)
490,400
1,003,676
(819,207)
(232,646)
442,223
Total funds
3,776,421
4,624,194
(4,766,628)
41,000
3,674,987
21
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.

THE MALCOLM SARGENT PRIMARY SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
21
Pension and similar obligations
(Continued)
- 41 -
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:

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 £333,256 (2023: £286,887).

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 24.2% for employers and 5.5 to 6.5% for employees.

THE MALCOLM SARGENT PRIMARY SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
21
Pension and similar obligations
(Continued)
- 42 -

Parliament has agreed, at the request of the Secretary of State for Education, to a guarantee that, in the event of academy closure, outstanding Local Government Pension Scheme liabilities would be met by the Department for Education. The guarantee came into force on 18 July 2013 and on 21 July 2022, the Department for Education reaffirmed its commitment to the guarantee, with a parliamentary minute published on GOV.UK.

 

The actuarial valuation prepared under FRS102 in respect of the Local Government Pension Scheme indicated that the Trust’s share of the scheme was in surplus as at the year end to the value of £1,008,000. 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
282,000
263,000
Employees' contributions
67,000
68,000
Total contributions
349,000
331,000
Principal actuarial assumptions
2024
2023
%
%
Rate of increase in salaries
3.8
3.9
Rate of increase for pensions in payment/inflation
2.8
2.9
Discount rate for scheme liabilities
5.1
5.3
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
310,000
268,000
0.5% increase in the Salary Increase Rate
9,000
9,000
0.5% increase in the Pension Increase Rate
307,000
264,000
THE MALCOLM SARGENT PRIMARY SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
21
Pension and similar obligations
(Continued)
- 43 -
The academy trust's share of the assets in the scheme
2024
2023
Fair value
Fair value
£
£
Equities
2,066,000
1,957,000
Bonds
524,000
416,000
Cash
126,000
108,000
Property
268,000
235,000
Other assets
786,000
452,000
Total market value of assets
3,770,000
3,168,000
Restriction on scheme assets
(1,008,000)
(758,000)
Net assets recognised
2,762,000
2,410,000
The actual return on scheme assets was £349,000 (2023: £126,000).
Amount recognised in the statement of financial activities
2024
2023
£
£
Current service cost
210,000
316,000
Interest income
(175,000)
(122,000)
Interest cost
127,000
107,000
Administration expenses
1,000
3,000
Total amount recognised
163,000
304,000

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
2,410,000
2,485,000
Current service cost
210,000
316,000
Interest cost
127,000
107,000
Employee contributions
67,000
68,000
Actuarial loss/(gain)
43,000
(557,000)
Benefits paid
(95,000)
(9,000)
At 31 August 2024
2,762,000
2,410,000
THE MALCOLM SARGENT PRIMARY SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
21
Pension and similar obligations
(Continued)
- 44 -
Changes in the fair value of the academy trust's share of scheme assets
2024
2023
£
£
At 1 September 2023
3,168,000
2,723,000
Interest income
175,000
122,000
Actuarial gain
174,000
4,000
Employer contributions
282,000
263,000
Employee contributions
67,000
68,000
Benefits paid
(95,000)
(9,000)
Effect of non-routine settlements and administration expenses
(1,000)
(3,000)
At 31 August 2024
3,770,000
3,168,000
Restriction on scheme assets
(1,008,000)
(758,000)
Net assets recognised
2,762,000
2,410,000
22
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
-
-
3,119,202
3,119,202
Current assets
661,690
238,078
-
899,768
Current liabilities
(114,236)
(238,078)
-
(352,314)
Total net assets
547,454
-
3,119,202
3,666,656
Unrestricted
Restricted funds:
Total
Funds
General
Fixed asset
Funds
£
£
£
£
Fund balances at 31 August 2023 are represented by:
Intangible fixed assets
-
-
526
526
Tangible fixed assets
-
-
3,232,238
3,232,238
Current assets
530,643
265,760
-
796,403
Current liabilities
(88,420)
(265,760)
-
(354,180)
Total net assets
442,223
-
3,232,764
3,674,987
THE MALCOLM SARGENT PRIMARY SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 45 -
23
Reconciliation of net income/(expenditure) to net cash flow from operating activities
2024
2023
Notes
£
£
Net income/(expenditure) for the reporting period (as per the statement of financial activities)
110,669
(142,434)
Adjusted for:
Capital grants from DfE and other capital income
(11,380)
(34,075)
Investment income receivable
6
(5,270)
(40)
Defined benefit pension costs less contributions payable
21
(71,000)
56,000
Defined benefit pension scheme finance income
21
(48,000)
(15,000)
Depreciation of tangible fixed assets
151,719
147,746
(Increase)/decrease in debtors
(70,701)
2,053
(Decrease) in creditors
(1,866)
(130,370)
Net cash provided by/(used in) operating activities
54,171
(116,120)
24
Analysis of changes in net funds
1 September 2023
Cash flows
31 August 2024
£
£
£
Cash
600,883
(170,845)
430,038
Cash equivalents
-
203,509
203,509
600,883
32,664
633,547
25
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
3,253
7,432
Amounts due in two and five years
920
4,198
4,173
11,630
THE MALCOLM SARGENT PRIMARY SCHOOL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 46 -
26
Related party transactions

Charity

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. There have been no transactions during the year.

 

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.

 

Included within the charity income is £70,565 (2023: £69,984) recharged to the subsidiary company, Acorn Childcare Centre Limited.

 

There has been a £262,000 (2023: £182,000) donation from Acorn Childcare Centre Limited during the year.

 

At the year end, £112,000 (2023: £182,000) is included within debtors due from Acorn Childcare Centre Limited.

27
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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