Company registration number 07693338 (England and Wales)
BROOKE HILL ACADEMY TRUST LIMITED
(A COMPANY LIMITED BY GUARANTEE)
ANNUAL REPORT AND ACCOUNTS
FOR THE YEAR ENDED
31 AUGUST 2024
31 August 2024
BROOKE HILL ACADEMY TRUST LIMITED
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
Balance sheet
23
Statement of cash flows
24
Notes to the accounts including accounting policies
25 - 44
BROOKE HILL ACADEMY TRUST LIMITED
REFERENCE AND ADMINISTRATIVE DETAILS
- 1 -
Members
Mr S A Foulkes
Mr K Ambrose
Mrs F Parish
Mr A Petit
Mr A Young
Trustees
Mr S A Foulkes (Chair of Trustees)
Mr T Smith
Mr R Haynes
Mr R J Gray
Mrs G D Scott
Mr C Charteris (Appointed 1 September 2023)
Mr A Petit (Appointed 23 January 2024)
Senior management team
- CEO
Mr C Charteris
- Head of School - Brooke Hill
Mrs A O'Shaughnessy
- Head of School - Edith Weston
Mrs P Rawlings
- Head of School - South Witham
Mr A Atter
- Deputy Head of School - Brooke Hill
Miss A Jackson
- SEND Representative
Mrs L Hall
- Early Years Lead
Mrs V Gipson
- KS1 Leader
Mrs S Brown
- Senior Lead Teacher
Miss K Hosmer
- Nurture and Outreach Lead
Mrs C Gibson
- Trust Finance and Business Manager
Mrs K Gray (until October 2024)
- Accounting Officer
Mr C Charteris
Company registration number
07693338 (England and Wales)
Principal and registered office
Brooke Hill Academy
Brooke Road
Oakham
Leicestershire
LE15 6HQ
United Kingdom
Academies operated
Location
Principal
Brooke Hill Academy
Oakham
Mrs A O'Shaughnessy
Edith Weston Academy
Edith Weston
Mrs P Rawlings
South Witham Academy
South Witham
Mr A Atter
Independent auditor
Azets Audit Services
Westpoint
Lynch Wood
Peterborough
Cambridgeshire
PE2 6FZ
United Kingdom
BROOKE HILL ACADEMY TRUST LIMITED
REFERENCE AND ADMINISTRATIVE DETAILS
- 2 -
Bankers
Lloyds Bank Plc
43 High Street
Oakham
Leicestershire
LE15 6AJ
United Kingdom
BROOKE HILL ACADEMY TRUST LIMITED
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 3 -

The trustees present their annual report together with the accounts and independent auditor's report of the charitable company for the period 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 trust operates a group of three academies for pupils aged 2 to 11 serving a catchment area in and around Oakham, Edith Weston, Rutland, and South Witham in Lincolnshire. Our overall PAN in the MAT is 525 and we currently have 392 pupils on roll across the MAT. In January 2023 Edith Weston was recognised as a ‘Good’ school by Ofsted. Brooke Hill was deemed ‘Good’ by Ofsted in March 2024. South Witham Academy was inspected in November 2023 and the school was graded ‘Good’ (having previously been Requires Improvement). The pandemic posed challenges for all schools but the provision put in place for all pupils was comprehensive and effective. All schools have now returned to the usual taught curriculum and operations.

 

The Chief Executive Officer works across the schools and is supported by a Headteacher at each school. The Finance and Business Manager, CEO and trust Administrator provide business, finance, and premises support across the MAT. We offer a rich and vibrant curriculum and pride ourselves on our extensive in-school opportunities and our extracurricular provision. We strive for high academic standards and strong ties within our local community. We are currently focusing on ensuring high quality teaching and learning, a focus on the ‘First 20%’ ensuring our most vulnerable children are well supported and reviewing our curriculum following the feedback from our internal reviews and Ofsted visits.

Structure, governance and management
Constitution

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

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

Members' liability

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

Trustees' indemnities

In accordance with normal commercial practice the Academy has purchased insurance to protect trustees and officers from claims arising from negligent acts, errors or omissions occurring whilst on Academy business. The insurance provides cover up to £10,000,000 on any one claim and the cost for the year ended 31 August 2024 is covered by the RPA insurance scheme. The cost of this insurance is included in the total insurance cost.

Method of recruitment and appointment or election of trustees

A Governor’s term of office is four years. At the end of the four years, the Governor is able to be re-elected. Should a vacancy arise due to resignation or the conclusion of a particular Governor’s four-year term, the vacancy is advertised widely within the school and local community. If more than one candidate nomination is received, an election is held. The candidates are given the opportunity to summarise their appropriate skills, experiences and reasons for volunteering and the information is widely broadcast to those entitled to vote (parents, carers, staff etc., depending upon type of governor/trustee). The candidate receiving the most votes is duly elected to the Governing Body or board of Trustees. We are fortunate to have a wide range of skills and expertise among our governors and trustees and actively seek to recruit governors and trustees with specific skills when needed. An annual skills audit informs our recruitment process.

BROOKE HILL ACADEMY TRUST LIMITED
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 4 -
Policies and procedures adopted for the induction and training of trustees

The training and induction provided for new Trustees will depend on their existing experience. Where necessary, induction will provide training on charity and educational legal and financial matters. All new Trustees and Governors are given a tour of the Academy and the chance to meet with staff and students. They are encouraged to visit all three schools.

Copies of policies, procedures, minutes, accounts, budgets, plans and other documents that they will need to undertake their role are made available to the Governors via a secure area on the MAT website. Wherever possible, induction is done informally and is tailored specifically to the individual, with a coaching and mentoring approach. Training for all new governors is provided by local providers and the SLT where appropriate. The Academy receives and distributes details of all training courses available. All governors will be subject to a DBS check and informed about safeguarding procedures.

Organisational structure

The Multi-Academy Trust (MAT) is governed through a clear Scheme of Delegation. Strategy and overall governance is directed by the MAT Board of Trustees. Specific matters are then delegated through a series of sub-committees of the Trustees. Each sub-committee consists of at least five people, being a mixture of Trustees and Academy staff. The sub-committee is always chaired by a Trustee. The sub-committees in turn delegate to either the MAT leadership or to a local governing body that sits within each academy member of the Trust, each time with a clear limit of authority. The local governing body (LGB) is responsible for ensuring that MAT strategies are implemented within their individual establishment and that MAT quality and standards are maintained. If a decision is required, which exceeds the limit of authority or if a committee is not quorate, the matter is referred back up to the delegating body to be heard at the committee or Board of Trustees meeting as appropriate. If time is of the essence extraordinary meetings will be called.

 

The Trustees meet at least six times a year including meetings of the full trust board and committees for accounts and finance, safeguarding and inclusion, and estates and compliance. These meetings are usually monthly and reports from all the sub-committees, the CEO and the Chair of Trustees are shared and discussed and any necessary decisions are made.

Arrangements for setting pay and remuneration of key management personnel

The arrangements for setting the pay at Brooke Hill Academy Trust are in line with the ISR range which is determined by the size of the school, according to the figures taken from the School census of the previous May. All members of the Senior Leadership Team (SLT) have substantial strategic responsibilities within the school for leadership, and these responsibilities are taken into account in determining the pay. All pay for senior staff is subject to the pay policy for Brooke Hill Academy Trust and the Resources committee reviews this policy annually. The CEO has an appraisal annually, which is conducted by at least two Trustees and an external advisor; this will then determine the targets set for the current academic year. These targets set are then used to determine the targets of all staff the staff through a robust Performance Management process to encourage a whole school approach which encompasses all staff in the improvement of the school. All staff members have objectives based around pupil progress, whole school improvement plan and CPD needs related to career stage expectations. Trustees moderate evidence provided by the SLT at the end of the yearly Performance Management cycle. All pay awards are reviewed and agreed by the Resources committee.

Trade union facility time
During the year no staff time was spent on trade union facility time and no requests for any time were made. No costs were incurred in the year in relation to trade union facility time.
Related parties and other connected charities and organisations

The MAT has no connected organisations or related parties outside of the MAT itself. Under the terms of our Academy Order we do offer guidance and assistance to other schools when requested and it is through this process that the MAT has grown to three schools.

BROOKE HILL ACADEMY TRUST LIMITED
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 5 -
Objectives and activities
Objects and aims

The Academy Trust aims to make learning fun and give children a brighter future through ensuring high academic standards and a wide range of extra-curricular opportunities. We strive to develop confident, responsible and caring individuals, who are motivated to achieve their potential and become active members of the wider community. We have over the past year developed new values and principles, these are:

Our objectives for the academic year 2023-24 were:

 

Public benefit

The Members confirm that they have complied with the duty in section 4 of the Charities Act 2006 to have due regard to the Charity Commission’s general guidance on public benefit, “Charities and Public Benefit”.

 

The MAT’s public benefit is enshrined in its charitable objects, which state “The Academy Trust’s object is to advance for the public benefit education by establishing, maintaining, carrying on, managing and developing a trust offering a broad and balanced curriculum; and to promote for the benefits of Brooke Hill, Edith Weston and South Witham and the surrounding areas of each school, the provision of a hall for leisure and interest pursuits to individuals and groups 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.”

BROOKE HILL ACADEMY TRUST LIMITED
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 6 -
Strategic report

Achievements and Performance

As a Trust, we aim to provide a high quality education for all of our pupils, meeting the needs of all children so that they can achieve their potential. Each school is individual, and we strive to work together to build on the strengths of each setting whilst providing the necessary support to bring each school to at least ‘good’ with high standards of attainment and quality all round provision.

 

Reduced birth rates in the area pose a challenge to numbers of children on role and focussed marketing activities were addressed to ensure that parents consider choosing BHAT schools.

 

Edith Weston Academy joined our MAT in January 2016. Ofsted inspected the school in January 2023 and was judged Good in all areas. The school serves St Georges Barracks in North Luffenham so the community is often transient. Currently, our numbers are falling but some local families are choosing the school for their children. The Nurture Hub provision in place since 2019 continues to thrive and has established a good reputation with the LEA and other schools in the area, in particular its outreach work. This is a funded project run in conjunction with Rutland County Council and the aim is to provide a setting for pupils at risk of exclusion or not able to access mainstream education due to attachment issues. Funding increased substantially in 2022/3 and this is expected to continue.

 

South Witham Academy was rated as ‘Good’ in November 2024. The report highlighted the good progress made by the school since the new Headteacher joined in 2022. Progress in all areas is evident and we have had external monitoring visits from our school improvement partner. Our pre-school provision (little Hedgehogs - opened November 2018) provides a good start for our children and we are looking at increasing the hours offered. Numbers are good throughout the school.

Key performance indicators

The MAT’s KPI's include, but are not restricted to, surplus position compared to budget, pupil progress against target, external test results compared to targets and national and local averages, staff and pupil attrition, results of staff, parent and pupil surveys and success and participation in extra-curricular activities. In 2023-24 the MAT, like all educational organisations, had to respond to some difficulties in mental health of both pupils and staff, recruitment challenges and increased illness (children and staff) following from Covid.

Going concern

After making appropriate enquiries, the Members have a reasonable expectation that the MAT 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 Accounting Policies note of the financial statements.

Financial review

We benefitted from a successful CIF bid and works were carried out in the autumn and winter of 2023-24 with Edith Weston now having a new roof. This means that all three schools have completed successful re-roofing projects. Many years of sound financial planning and control have meant we have sufficient resources to allow short periods of investment above our existing income levels and the impact of this is evidenced by progress achieved by all schools within the MAT. We continue to seek out additional sources of funds to assist in capital expenditure programme, where possible.

 

As stated above and shown in the financial statements the MAT continues to benefit from the freedoms afforded by its Academy status and although adding additional schools is at first a financial challenge, the economies of medium scale are found in later years. Continued focus on sound financial management means we have been able to invest healthy sums of money into improving the educational facilities for the children. This has included a wide range of technological and non-technological teaching and learning tools.

BROOKE HILL ACADEMY TRUST LIMITED
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 7 -

Financial report for the year

The majority of the Academy’s income is obtained from the DfE in the form of recurrent grants. The grants received from the DfE received during the year ended 31 August 2024 and the associated expenditure are shown in the statement of financial activities.

 

During the year ended 31 August 2024, total expenditure was £3,940,507, which is £31,425 in excess of income.

 

At 31 August 2024, the net book value of fixed assets was £5,964,781. The assets were used exclusively for providing education and the associated support services to the students of the MAT.

Reserves policy

The amount of reserves held at 31 August 2024 is £6,360,142.

The amount of restricted reserves that are not available for the general purposes of the Trust at 31 August 2024 is £5,964,782 and no material funds have been committed as at that date. The amount of funds that can only be realised by disposing of fixed assets (i.e. value of fixed asset fund) is £5,964,781.

The amount of reserves in deficit at 31 August 2024 (Pension deficit and any others) is £nil and the amount of unrestricted funds at the same date is £375,255.

The MAT's 'free' reserves are its funds after excluding restricted funds. 'Reserves' are therefore the resources the MAT has or can make available to spend for any or all of the MAT's purposes once it has met its commitments and covered its other planned expenditure. More specifically 'free reserves' represent income to the MAT which is to be spent at the Trustees' discretion in furtherance of any of the MAT's objects but which is not yet spent, committed or designated.

The trustees review the reserve levels of the MAT at the monthly Resources Committee. This review encompasses the nature of income and expenditure streams. The trustees have determined that the appropriate level of free reserves should be equivalent to two months’ expenditure (excluding depreciation and LGPS adjustments), which is approximately £500,000. The reason for this is to provide sufficient working capital to cover delays between spending and receipt of grants and to provide a cushion to deal with unexpected emergencies such as urgent maintenance. The MAT’s current level of free reserves is £395,360. Although below target, the board of trustees are cognisant of the fact and are comfortable with the current levels.

The MAT’s non-teaching staff are entitled to membership of the Local Government Pension Scheme. The MAT’s share of the Scheme’s assets is currently assessed to be more than its liabilities in the Scheme and consequently the balance sheet shows a balance of £nil.

Investment policy

The MAT has no investments other than bank deposits. The MAT does manage its cash flow carefully and places spare funds on deposit with higher rates of interest where possible.

BROOKE HILL ACADEMY TRUST LIMITED
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 8 -
Principal risks and uncertainties

The MAT finances and risk policies are run with the rigour of a much larger corporate environment. The committee structure ensures that all decisions are debated appropriately and the independent review of policies, process and risk by our Responsible Officer adds a further level of control.

 

The Trustees have assessed the major risks to which the MAT is exposed, in particular those relating to the specific teaching, provision of facilities and other operational areas of the MAT and its finances. The Trustees have implemented a regular review process to assess and reassess risks that the MAT faces, especially in the operational areas (e.g. in relation to teaching, health and safety, bullying and school trips) and in relation to the control of finance. They have also formulated a business continuity/disaster recovery plan to ensure the ongoing provision of a learning environment should there be a significant loss of buildings, impairment of teaching facilities or major staff absence.

 

The Trustees Resources committee review the risk to the Trust estates. The role of facilities and compliance manager was created in December 2022 specifically to ensure the trust continues to provide an estate that is safe, well maintained and complies with relevant regulations. A process of continual updating of Condition surveys is ongoing.

 

They have introduced systems, including operational procedures (e.g. vetting of new staff and visitors, supervision of school grounds) and internal financial controls in order to minimise risk. Where significant financial risk still remains, they have ensured they have adequate insurance cover. The Academy has an effective system of internal financial controls which is regularly reviewed and assessed by the Responsible Officer.

 

The internal controls for managing risks deemed as medium and high are incorporated into annual risk management action plan. The effectiveness of the MAT’s internal controls in managing the risks identified is regularly monitored.

 

A thorough appraisal is undertaken in the subsequent year of the existing risks and any emerging risks, for example, those arising from changes to national funding policy and/or local circumstances. In addition to the annual review, the Risk Management Committee will also consider any risks which arise during the year, for example, as a result of a new area of work being undertaken by the MAT.

 

A risk register, covering low, medium and high-level risks, is maintained at MAT level. The risk register identifies the key risks, the likelihood of those risks occurring, their potential impact on the MAT and the actions being taken to reduce and mitigate the risks. Risks are prioritised as low, medium and high using a consistent scoring system.

The policy is intended to cover all risks to the MAT achieving its educational, pastoral and community goals.

 

Risk Assessment Process

To assess a particular risk and the threat it poses, the MAT uses two criteria:

 

These criteria are then combined to determine an overall assessment of risk severity using the materiality matrix. The matrices are designed to enable the consistent assessment of risks and to ensure relevance based on the relative materiality of the risk. Risks are identified, assessed, reported and mitigated using the matrices. These matrices are then used in conjunction with the creation and maintenance of the risk register. The risk register will be formally reviewed and updated three times per annum.

Fundraising

Brooke Hill Academy, Edith Weston Academy and South Witham Academy all have an active PTA, working with the school staff to fund raise for the children although this work was limited last year. Staff work closely with the group and are represented at all meetings and events. Events before closure included disco’s fetes, film nights and a Christmas raffle. Each group has a constitution and committee that meets regularly. Funding provides assistance towards the swimming buses, trips, book bags and the library area in each school. We are mindful of timing of requests to parents. Monitoring is carried out by school staff and governors during Resources meetings. All fundraising follows the guidelines of the Charity Commission. There have been no complaints.

BROOKE HILL ACADEMY TRUST LIMITED
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 9 -
Plans for future periods

Our key priorities for 2024-25 are:

Funds held as custodian trustee on behalf of others

The School and its Trustees do not act as the Custodian Trustees of any other Charity or organisation.

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 17 December 2024 and signed on its behalf by:

Mr S A Foulkes
Chair of Trustees
BROOKE HILL ACADEMY TRUST LIMITED
GOVERNANCE STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024
- 10 -
Scope of responsibility

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

The board of trustees has delegated the day-to-day responsibility to the Executive Head Teacher as accounting officer, for ensuring financial controls conform with the requirements of both propriety and good financial management and in accordance with the requirements and responsibilities assigned to it in the funding agreement between Brooke Hill Academy Trust Limited and the Secretary of State for Education. They are also responsible for reporting to the board of trustees any material weaknesses or breakdowns in internal control.

Governance

The information on governance included here supplements that described in the Trustees' Report and in the Statement of Trustees' Responsibilities.

 

The board of trustees has formally met 4 times during the year. Attendance during the year at meetings of the board of trustees was as follows:

Trustees
Meetings attended
Out of possible
Mr S A Foulkes (Chair of Trustees)
4
4
Mr T Smith
1
4
Mr R Haynes
3
4
Mr R J Gray
0
4
Mrs G D Scott
4
4
Mr C Charteris (Appointed 1 September 2023)
4
4
Mr A Petit (Appointed 23 January 2024)
2
2

In the year 2023-24 the Board of Trustees has seen one change in its composition with the appointment of Mr A Petit in January 2024. The board has continued to oversee the operation of the Trust and its schools with all committees and sub-committees meeting as required.

A review of the effectiveness of Governance of the Trust has commenced, initially internally with the new CEO, resulting in an update of the responsibilities of the Trust Board and The Local Governing Bodies of each academy. A new scheme of delegation was drafted and agreed by the Board to ensure compliance and to address the potential for duplication at different levels of governance across the Trust. A process to standardise communication between the Local Governing Bodies and Trustees will be introduced in Academic Year 2024-25. The Trust has joined the Confederation of School Trusts and will use its resources to recognise best practice and the opportunity to improve effectiveness of individual trustees and the Trust Board. A review of the impact and effectiveness of these initiatives and of Trustees and Governors will be performed in the second half of the year 2024-25.

BROOKE HILL ACADEMY TRUST LIMITED
GOVERNANCE STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 11 -
Review of value for money

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

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

 

It is the aim of Brooke Hill Academy to obtain and give best value for all supplies and services provided. The School definition of Best Value is that it must demonstrate economy and efficiency as well as effectiveness and quality. A balance between cost and quality while improving service is the aim of the Plan. The criteria used for assessing whether Best Value is achieved are Challenge, Compare, Consult and Compete.

 

1. Challenge - Do we need the service/product, i.e. will the service improve the performance of the School? Do we use the best provider?

 

2. Compare – What are our requirements – clear specification/objectives giving consideration to all methods of

provision i.e. internal and external providers, possibility of partnerships or joint ventures with other educational establishments; comparisons of available benchmarking data such as SATs and Raise online results.

 

3. Consult – What do the stakeholders want? Are we providing what the pupils, parents, staff and community need? To do this we send out questionnaires.

 

4. Compete – Who can best provide the service/product?

- Obtain comparative quotations/costings.

- Check performance of service/product suppliers, i.e. recommendation by others, seeing product in use, etc.

 

To this end the School uses the following:

i. School Improvement Plan showing:

 

ii. A separate Technology Development Plan set out in a similar fashion to the whole School Development Plan.

 

iii. A costed and prioritised premises maintenance/repair programme is in place to ensure the Trust estate remains safe and well maintained. A rolling condition survey has been implemented for 2023-24 to identify the areas of investment needed taking into consideration external funding and capital projects as well as the ongoing compliance with regulations.

 

Consultation is carried out with all stakeholders – some of the mechanisms for this are:

 

Review mechanisms are in place for most areas as follows:

BROOKE HILL ACADEMY TRUST LIMITED
GOVERNANCE STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 12 -

70-80% of the Trust’s expenditure is on people. Their cost is balanced against the educational needs of the schools during budgeting with a strong link between trustess with Finance and Personnel responsibilities and full involvement of the leadership team. All Governors approve the budget with a full knowledge of the staff implications and they agree variations. All staff appointments and changes with financial implications are done with CEO agreement and agreed at Finance and Personnel committee. Trustees are responsible for all senior leadership recruitment and pay grades.

 

Careful monitoring of the budget is undertaken by the CEO and the trustee Accounts Committee.

 

All consumable items are discussed with staff and curriculum coordinators who take responsibility for ordering for their own subject areas. We have a variety of options open to us when ordering and the issue of best value is always considered. Green procurement is always considered when ordering goods.

 

Consultation with parents is structured through parent surveys or at meetings held specifically to discuss particular issues with them. Two parents’ evenings are held each year, when issues can be raised, although the trust has an ‘open door’ policy at all times.

 

The children are consulted via the School Council representatives and their thoughts and opinions are considered when making change that will alter their environment. The Business Manager takes responsibility for negotiating the best deals on repairs, maintenance and alterations or improvements. Insurance cover is provided via the ESFA’s Risk Protection Arrangement scheme, which gives us competitive buildings, staffing and contents cover.

 

Our energy contacts are also negotiated using RCCDC Property Services who find the most competitive tender from the variety of companies on offer.

 

Grounds maintenance is offered to the most competitive tender and reviewed annually in the light of performance.

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 Brooke Hill Academy Trust Limited 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.

 

Conflicts of interest

At the start of each Trustees and Governor meeting any conflicts of interest are declared and noted. Members of the group with a conflict of interest will either abstain from the decision making progress or leave the meeting.

BROOKE HILL ACADEMY TRUST LIMITED
GOVERNANCE STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
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The risk and control framework

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

 

The board of trustees has considered the need for a specific internal audit function and has appointed Graham Kirby as internal auditor. This role includes performing a range of checks on the academy trust’s financial systems. The issue highlighted in 2021-22 where visits did not take place has been addressed and regular schedule of visits has been fulfilled since.

Review of effectiveness

As accounting officer the CEO has responsibility for reviewing the effectiveness of the system of internal control. During the year in question the review has been informed by:

 

The accounting officer has been advised of the implications of the result of their review of the system of internal control by the Finance and Personnel 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 17 December 2024 and signed on its behalf by:

Mr S A Foulkes
Mr C Charteris
Chair of Trustees
Accounting Officer
BROOKE HILL ACADEMY TRUST LIMITED
STATEMENT OF REGULARITY, PROPRIETY AND COMPLIANCE
FOR THE YEAR ENDED 31 AUGUST 2024
- 14 -

As accounting officer of Brooke Hill Academy Trust Limited, 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 the following instances of material irregularity, impropriety or funding non-compliance discovered to date have been notified to the board of trustees and ESFA. If any instances are identified after the date of this statement, these will be notified to the board of trustees and ESFA:

 

There has been a significant lack of controls over credit cards held by the academy trust in the year.

 

I am not aware of any impropriety or funding non-compliance as a result.

Mr C Charteris
Accounting Officer
17 December 2024
BROOKE HILL ACADEMY TRUST LIMITED
STATEMENT OF TRUSTEES' RESPONSIBILITIES
FOR THE YEAR ENDED 31 AUGUST 2024
- 15 -

The trustees (who are also the directors of Brooke Hill Academy Trust Limited 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 17 December 2024 and signed on its behalf by:

Mr S A Foulkes
Chair of Trustees
BROOKE HILL ACADEMY TRUST LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BROOKE HILL ACADEMY TRUST LIMITED
FOR THE YEAR ENDED 31 AUGUST 2024
- 16 -

Opinion

We have audited the accounts of Brooke Hill Academy Trust Limited for the year ended 31 August 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the accounts, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice), the Charities SORP 2019 and the Academies Accounts Direction 2023 to 2024 issued by the Education and Skills Funding Agency.

In our opinion the accounts:

-

give a true and fair view of the state of the charitable company's affairs as at 31 August 2024 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

-

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

-

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

-

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

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

BROOKE HILL ACADEMY TRUST LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BROOKE HILL ACADEMY TRUST LIMITED (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 and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report, including the incorporated strategic report.

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

-

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

-

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

-

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

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

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

Auditor's responsibilities for the audit of the accounts

Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these accounts.

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

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

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

BROOKE HILL ACADEMY TRUST LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BROOKE HILL ACADEMY TRUST LIMITED (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
17 December 2024
Chartered Accountants
Statutory Auditor
Westpoint
Lynch Wood
Peterborough
Cambridgeshire
United Kingdom
PE2 6FZ
BROOKE HILL ACADEMY TRUST LIMITED
INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO BROOKE HILL ACADEMY TRUST LIMITED 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 4 November 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 Brooke Hill Academy Trust Limited 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 Brooke Hill Academy Trust Limited and ESFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to the Brooke Hill Academy Trust Limited 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 Brooke Hill Academy Trust Limited and ESFA, for our work, for this report, or for the conclusion we have formed.

Respective responsibilities of Brooke Hill Academy Trust Limited's accounting officer and the reporting accountant

The accounting officer is responsible, under the requirements of Brooke Hill Academy Trust Limited’s funding agreement with the Secretary of State for Education dated 1 September 2011 and the Academy Trust Handbook, extant from 1 September 2023, for ensuring that expenditure disbursed and income received is applied for the purposes intended by Parliament and the financial transactions conform to the authorities which govern them.

Our responsibilities for this engagement are established in the United Kingdom by our profession’s ethical guidance, and are to obtain limited assurance and report in accordance with our engagement letter and the requirements of the Academies Accounts Direction 2023 to 2024. We report to you whether anything has come to our attention in carrying out our work which suggests that in all material respects, expenditure disbursed and income received during the period 1 September 2023 to 31 August 2024 have not been applied to purposes intended by Parliament or that the financial transactions do not conform to the authorities which govern them.

Approach

We conducted our engagement in accordance with the Framework and Guide for External Auditors and Reporting Accountant of Academy Trusts issued by ESFA. We performed a limited assurance engagement as defined in our engagement letter.

The objective of a limited assurance engagement is to perform such procedures as to obtain information and explanations in order to provide us with sufficient appropriate evidence to express a negative conclusion on regularity.

A limited assurance engagement is more limited in scope than a reasonable assurance engagement and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in a reasonable assurance engagement. Accordingly, we do not express a positive opinion.

Our engagement includes examination, on a test basis, of evidence relevant to the regularity and propriety of the academy trust's income and expenditure.

The work undertaken to draw to our conclusion includes:

 

BROOKE HILL ACADEMY TRUST LIMITED
INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO BROOKE HILL ACADEMY TRUST LIMITED AND THE EDUCATION AND SKILLS FUNDING AGENCY (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 20 -
Conclusion

In the course of our work, except for the matters listed below, 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.

There has been a significant lack of controls over credit cards held by the academy trust in the year.

Reporting Accountant
Azets Audit Services
Westpoint
Lynch Wood
Peterborough
Cambridgeshire
PE2 6FZ
United Kingdom
Dated: 17 December 2024
BROOKE HILL ACADEMY TRUST LIMITED
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
1,869
-
412,250
414,119
779,051
Charitable activities:
- Funding for educational operations
4
119,638
3,307,495
-
3,427,133
3,217,537
Other trading activities
5
59,001
-
-
59,001
43,545
Investments
6
8,829
-
-
8,829
4,056
Total
189,337
3,307,495
412,250
3,909,082
4,044,189
Expenditure on:
Charitable activities:
- Educational operations
8
129,936
3,231,390
579,181
3,940,507
4,361,377
Total
7
129,936
3,231,390
579,181
3,940,507
4,361,377
Net income/(expenditure)
59,401
76,105
(166,931)
(31,425)
(317,188)
Other recognised gains/(losses)
Actuarial gains on defined benefit pension schemes
25
-
134,000
-
134,000
549,000
Adjustment for restriction on pension assets
25
-
(190,000)
-
(190,000)
(284,000)
Net movement in funds
59,401
20,105
(166,931)
(87,425)
(52,188)
Reconciliation of funds
Total funds brought forward
315,854
-
6,131,712
6,447,566
6,499,754
Total funds carried forward
375,255
20,105
5,964,781
6,360,141
6,447,566
BROOKE HILL ACADEMY TRUST LIMITED
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
-
-
779,051
779,051
Charitable activities:
- Funding for educational operations
4
117,573
3,099,964
-
3,217,537
Other trading activities
5
43,545
-
-
43,545
Investments
6
4,056
-
-
4,056
Total
165,174
3,099,964
779,051
4,044,189
Expenditure on:
Charitable activities:
- Educational operations
8
122,835
3,320,635
917,907
4,361,377
Total
7
122,835
3,320,635
917,907
4,361,377
Net income/(expenditure)
42,339
(220,671)
(138,856)
(317,188)
Transfers between funds
18
(193,090)
188,671
4,419
-
Other recognised gains/(losses)
Actuarial gains on defined benefit pension schemes
25
-
549,000
-
549,000
Adjustment for restriction on pension assets
25
-
(284,000)
-
(284,000)
Net movement in funds
(150,751)
233,000
(134,437)
(52,188)
Reconciliation of funds
Total funds brought forward
466,605
(233,000)
6,266,149
6,499,754
Total funds carried forward
315,854
-
6,131,712
6,447,566
BROOKE HILL ACADEMY TRUST LIMITED
BALANCE SHEET
AS AT 31 AUGUST 2024
- 23 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
14
5,964,781
6,131,712
Current assets
Debtors
15
96,918
172,910
Cash at bank and in hand
541,219
537,167
638,137
710,077
Current liabilities
Creditors: amounts falling due within one year
16
(242,777)
(394,223)
Net current assets
395,360
315,854
Net assets excluding pension asset
6,360,141
6,447,566
Defined benefit pension scheme asset
25
-
-
Total net assets
6,360,141
6,447,566
Funds of the academy trust:
Restricted funds
18
- Fixed asset funds
5,964,781
6,131,712
- Restricted income funds
20,105
-
Total restricted funds
5,984,886
6,131,712
Unrestricted income funds
18
375,255
315,854
Total funds
6,360,141
6,447,566

The accounts on pages 21 to 44 were approved by the trustees and authorised for issue on 17 December 2024 and are signed on their behalf by:

Mr S A Foulkes
Chair of Trustees
Company registration number 07693338 (England and Wales)
BROOKE HILL ACADEMY TRUST LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024
- 24 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Net cash used in operating activities
22
(410,127)
(784,133)
Cash flows from investing activities
Dividends, interest and rents from investments
8,829
4,056
Capital grants from DfE Group
412,250
779,051
Purchase of tangible fixed assets
(6,900)
(37,684)
Net cash provided by investing activities
414,179
745,423
Net increase/(decrease) in cash and cash equivalents in the reporting period
4,052
(38,710)
Cash and cash equivalents at beginning of the year
537,167
575,877
Cash and cash equivalents at end of the year
541,219
537,167
BROOKE HILL ACADEMY TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 25 -
1
Accounting policies

A summary of the principal accounting policies adopted (which have been applied consistently, except where noted), judgements and key sources of estimation uncertainty, is set out below.

1.1
Basis of preparation

The accounts of the academy trust, which is a public benefit entity under FRS 102, have been prepared under the historical cost convention in accordance with the Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102), the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)), the Academies Accounts Direction 2023 to 2024 issued by ESFA, the Charities Act 2011 and the Companies Act 2006.

1.2
Going concern

The trustees assess whether the use of going concern is appropriate, ie whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charitable company to continue as a going concern. The trustees have made this assessment in respect of a period of at least one year from the date of authorisation for issue of the accounts and have concluded that the academy trust has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the academy trust’s ability to continue as a going concern. Thus they continue to adopt the going concern basis of accounting in preparing the accounts.

1.3
Income

All incoming resources are recognised when the academy trust has entitlement to the funds, the receipt is probable and the amount can be measured reliably.

Grants

Grants are included in the statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the balance sheet. Where income is received in advance of meeting any performance-related conditions there is not unconditional entitlement to the income and its recognition is deferred and included in creditors as deferred income until the performance-related conditions are met. Where entitlement occurs before income is received, the income is accrued.

General Annual Grant is recognised in full in the statement of financial activities in the period for which it is receivable, and any abatement in respect of the period is deducted from income and recognised as a liability.

Capital grants are recognised in full when there is an unconditional entitlement to the grant. Unspent amounts of capital grants are reflected in the balance sheet in the restricted fixed asset fund. Capital grants are recognised when there is entitlement and are not deferred over the life of the asset on which they are expended.

Sponsorship income

Sponsorship income provided to the academy trust which amounts to a donation is recognised in the statement of financial activities in the period in which it is receivable (where there are no performance-related conditions), where the receipt is probable and it can be measured reliably.

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.

BROOKE HILL ACADEMY TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 26 -
Donated goods, facilities and services

Goods donated for resale are included at fair value, being the expected proceeds from sale less the expected costs of sale. If it is practical to assess the fair value at receipt, it is recognised in stock and ‘Income from other trading activities’. Upon sale, the value of the stock is charged against ‘Income from other trading activities’ and the proceeds are recognised as ‘Income from other trading activities’. Where it is impractical to fair value the items due to the volume of low value items they are not recognised in the accounts until they are sold. This income is recognised within ‘Income from other trading activities’.

Donated fixed assets

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

1.4
Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

 

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

All resources expended are inclusive of irrecoverable VAT.

Expenditure on raising funds

This includes all expenditure incurred by the academy trust to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Charitable activities

These are costs incurred on the academy trust's educational operations, including support costs and costs relating to the governance of the academy trust apportioned to charitable activities.

Governance costs

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

1.5
Tangible fixed assets and depreciation

Assets costing £1,000 or more are capitalised as tangible fixed assets and are carried at cost, net of depreciation and any provision for impairment.

 

Leasehold land and buildings have been valued by the trustees and brought into the accounts at that valuation.

 

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. Where there are specific conditions attached to the funding that require the continued use of the asset, 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 the relevant assets is charged directly to the restricted fixed asset fund in the statement of financial activities. Where tangible fixed assets have been acquired with unrestricted funds, depreciation on such assets is charged to the unrestricted fund.

BROOKE HILL ACADEMY TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 27 -

Depreciation is provided on all tangible 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:

Leasehold land and buildings
2% straight line
Computer equipment
4 years straight line
Fixtures, fittings & equipment
4 years straight line

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the statement of financial activities.

1.6
Liabilities

Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the academy trust anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods of services it must provide.

1.7
Leased assets

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

1.8
Financial instruments

The academy trust only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the academy trust and their measurement basis are as follows.

Financial assets

Trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments.

 

Cash at bank is classified as a basic financial instrument and is measured at face value.

Financial liabilities

Trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition.

 

Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument.

1.9
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.

1.10
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.

BROOKE HILL ACADEMY TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 28 -

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.

1.11
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 funders where the asset acquired or created is held for a specific purpose.

Restricted general funds comprise all other restricted funds received with restrictions imposed by the funder/donor and include grants from the Education and Skills Funding Agency/Department for Education.

2
Critical accounting estimates and areas of judgement

Accounting estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

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 20, will impact the carrying amount of the pension liability. Furthermore a roll forward approach which projects results from the latest full actuarial valuation performed at 31 March 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.

BROOKE HILL ACADEMY TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 29 -
3
Donations and capital grants
Unrestricted
Restricted
Total
Total
funds
funds
2024
2023
£
£
£
£
Capital grants
-
412,250
412,250
779,051
Other donations
1,869
-
1,869
-
1,869
412,250
414,119
779,051
4
Funding for the academy trust's educational operations
Unrestricted
Restricted
Total
Total
funds
funds
2024
2023
£
£
£
£
DfE/ESFA grants
General annual grant (GAG)
-
2,321,915
2,321,915
2,185,357
Other DfE/ESFA grants:
- UIFSM
-
61,712
61,712
68,228
- Pupil premium
-
115,448
115,448
90,809
- PE & sports grant
-
52,110
52,110
51,830
- Rates relief
-
9,108
9,108
6,399
- Teachers pension grant
-
19,458
19,458
2,558
- Teachers pay grant
-
38,309
38,309
905
- Others
-
89,448
89,448
110,001
-
2,707,508
2,707,508
2,516,087
Other government grants
Local authority grants
-
446,921
446,921
545,825
Other government grants
-
79,654
79,654
38,052
-
526,575
526,575
583,877
Other incoming resources
119,638
73,412
193,050
117,573
Total funding
119,638
3,307,495
3,427,133
3,217,537
5
Other trading activities
Unrestricted
Restricted
Total
Total
funds
funds
2024
2023
£
£
£
£
Hire of facilities
16,849
-
16,849
17,908
Other income
42,152
-
42,152
25,637
59,001
-
59,001
43,545
BROOKE HILL ACADEMY TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 30 -
6
Investment income
Unrestricted
Restricted
Total
Total
funds
funds
2024
2023
£
£
£
£
Bank interest
8,829
-
8,829
4,056
7
Expenditure
Non-pay expenditure
Total
Total
Staff costs
Premises
Other
2024
2023
£
£
£
£
£
Academy's educational operations
- Direct costs
1,909,705
-
260,377
2,170,082
2,064,522
- Allocated support costs
743,502
840,106
186,817
1,770,425
2,296,855
2,653,207
840,106
447,194
3,940,507
4,361,377
Net income/(expenditure) for the year includes:
2024
2023
£
£
Operating lease rentals
38,268
36,692
Depreciation of tangible fixed assets
173,831
171,284
Loss on disposal of fixed assets
-
837
Fees payable to auditor for:
- Audit
11,200
10,400
- Other services
2,634
4,365
Net interest on defined benefit pension liability
(17,000)
12,000
8
Charitable activities
Unrestricted
Restricted
Total
Total
funds
funds
2024
2023
£
£
£
£
Direct costs - educational operations
104,472
2,065,610
2,170,082
2,064,522
Support costs - educational operations
25,464
1,744,961
1,770,425
2,296,855
129,936
3,810,571
3,940,507
4,361,377
BROOKE HILL ACADEMY TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
8
Charitable activities
(Continued)
- 31 -
Total
Total
2024
2023
£
£
Direct costs
Teaching and educational support staff costs
1,909,705
1,813,508
Staff development
19,739
10,618
Technology costs
67,137
41,095
Educational supplies and services
173,501
199,301
2,170,082
2,064,522
Support costs
Support staff costs
743,502
866,834
Depreciation and amortisation
173,831
172,121
Personnel fees
17,567
13,610
Maintenance of premises and equipment
477,807
860,033
Equipment rental
4,992
6,667
Printing, postage and stationery
28,235
10,400
Cleaning
14,202
35,206
Energy costs
124,287
96,300
Rent and rates
33,276
30,025
Insurance
11,711
10,967
Catering
96,830
116,300
Interest and finance costs
(17,000)
12,000
Other support costs
16,658
18,558
Governance costs
44,527
47,834
1,770,425
2,296,855
9
Governance costs
Total
Total
All from restricted funds:
2024
2023
£
£
Amounts included in support costs
Legal and professional fees
28,293
27,576
Auditor's remuneration
- Audit of financial statements
11,200
10,400
- Other audit costs
2,634
4,365
Trustees' services and training
2,400
5,493
44,527
47,834
BROOKE HILL ACADEMY TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 32 -
10
Staff
Staff costs and employee benefits
Staff costs during the year were:
2024
2023
£
£
Wages and salaries
1,935,251
2,017,532
Social security costs
167,241
177,194
Pension costs
432,262
485,616
Staff costs - employees
2,534,754
2,680,342
Agency staff costs
102,426
-
Staff restructuring costs
16,027
-
2,653,207
2,680,342
Staff development and other staff costs
19,739
10,618
Total staff expenditure
2,672,946
2,690,960
Staff restructuring costs comprise:
Redundancy payments
8,984
-
Severance payments
7,043
-
16,027
-
Severance payments

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

£0 - £25,000
2
Staff numbers
The average number of persons employed by the academy trust during the year was as follows:
2024
2023
Number
Number
Teachers
25
30
Administration and support
56
58
Management
1
1
82
89
BROOKE HILL ACADEMY TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
10
Staff
(Continued)
- 33 -
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
In the band £60,001 - £70,000
-
1
In the band £90,001 - £100,000
1
1

The above employees earning more than £60,000 per annum participated in the Teachers' Pension Scheme. During the year ended 31 August 2024, pension contributions amounted to £23,608 (2023: £38,239).

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 £784,405 (2023: £759,543).

11
Central services

The academy trust has provided central services to its academies during the year.

The academy trust charges for these services on a proportionate basis, for the majority of costs this is 51% to Brooke Hill Academy and 21% to Edith Weston Academy and South Witham Academy.

The amounts charged during the year were as follows:
2024
£
Brooke Hill Academy
134,759
Edith Weston Academy
47,707
South Witham Academy
47,707
230,173
12
Trustees' remuneration and expenses

One or more of the 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.

 

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

S R Milner (Executive headteacher until 31 August 2023)

    Remuneration £nil (2023 - £95,000 - £100,000)

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

 

C Charteris (Executive headteacher from 1 September 2024)

    Remuneration £90,000 - £95,000 (2023 - £nil)

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

BROOKE HILL ACADEMY TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
12
Trustees' remuneration and expenses
(Continued)
- 34 -

During the year expenses totalling £250 relating to staff responsibilities were reimbursed to 1 trustee (2023: £301).

13
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 trust 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.

14
Tangible fixed assets
Leasehold land and buildings
Computer equipment
Fixtures, fittings & equipment
Total
£
£
£
£
Cost
At 1 September 2023
7,275,972
140,014
417,499
7,833,485
Additions
-
6,901
-
6,901
At 31 August 2024
7,275,972
146,915
417,499
7,840,386
Depreciation
At 1 September 2023
1,206,873
115,547
379,353
1,701,773
Charge for the year
148,720
10,389
14,723
173,832
At 31 August 2024
1,355,593
125,936
394,076
1,875,605
Net book value
At 31 August 2024
5,920,379
20,979
23,423
5,964,781
At 31 August 2023
6,069,099
24,467
38,146
6,131,712
15
Debtors
2024
2023
£
£
Trade debtors
7,676
54,809
VAT recoverable
43,209
43,433
Prepayments and accrued income
46,033
74,668
96,918
172,910
BROOKE HILL ACADEMY TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 35 -
16
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
118,100
203,460
Other taxation and social security
35,498
40,357
Other creditors
37,267
53,328
Accruals and deferred income
51,912
97,078
242,777
394,223
17
Deferred income
2024
2023
£
£
Deferred income is included within:
Creditors due within one year
37,156
43,912
Deferred income at 1 September 2023
43,912
43,410
Released from previous years
(43,912)
(43,410)
Resources deferred in the year
37,156
43,912
Deferred income at 31 August 2024
37,156
43,912

Deferred income relates to funds received in advance for grant funding for Universal Infant Free School Meals received in advance for the 2024/25 year.

BROOKE HILL ACADEMY TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 36 -
18
Funds
Balance at
Gains,
Balance at
1 September
losses and
31 August
2023
Income
Expenditure
transfers
2024
£
£
£
£
£
Restricted general funds
General Annual Grant (GAG)
-
2,321,915
(2,301,810)
-
20,105
UIFSM
-
61,712
(61,712)
-
-
Pupil premium
-
115,448
(115,448)
-
-
Other DfE/ESFA grants
-
208,433
(208,433)
-
-
Other government grants
-
526,575
(526,575)
-
-
Other restricted funds
-
73,412
(73,412)
-
-
Pension reserve
-
-
56,000
(56,000)
-
-
3,307,495
(3,231,390)
(56,000)
20,105
Restricted fixed asset funds
Inherited on conversion
5,598,788
-
(134,911)
-
5,463,877
Assets funded from grants
532,924
412,250
(444,270)
-
500,904
6,131,712
412,250
(579,181)
-
5,964,781
Total restricted funds
6,131,712
3,719,745
(3,810,571)
(56,000)
5,984,886
Unrestricted funds
General funds
315,854
189,337
(129,936)
-
375,255
Total funds
6,447,566
3,909,082
(3,940,507)
(56,000)
6,360,141
BROOKE HILL ACADEMY TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
18
Funds
(Continued)
- 37 -

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

 

General Annual Grant (GAG) must be used for the normal running costs of the Academy.

 

Other DfE / ESFA Grants comprise of various grants awarded for specific projects, in particular to boost standards of attainment. Grants include Pupil Premium funding which is intended to support education for pupils from a disadvantaged background.

 

Local government Grants includes funding provided for pupils with Statements of Special Educational Needs and is used by the academy to assist with the pupils education.

 

Devolved capital funding is that provided to academies to use as it sees fit in areas such as improvements to buildings or facilities, or the repair or refurbishment of such.

 

Other capital grants are provided to the academy based on specific bids for individual projects.

 

Other income comprises various other receipts including school meals. The income is classed as restricted or unrestricted based on the nature of the income.

 

Restricted fixed asset funds represent monies received in respect of and spent on fixed assets. This includes assets inherited on conversion. The total of resources expended within this fund include the depreciation charge for the year. The transfer figure is the amount of other funds used to acquire fixed assets.

 

Under the funding agreement with the Secretary of State, the Academy was not subject to a limit on the amount of GAG that it could carry forward at 31 August 2024.

BROOKE HILL ACADEMY TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
18
Funds
(Continued)
- 38 -
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)
-
2,185,357
(2,374,028)
188,671
-
UIFSM
-
68,228
(68,228)
-
-
Pupil premium
-
90,809
(90,809)
-
-
Other DfE/ESFA grants
-
171,693
(171,693)
-
-
Other government grants
-
583,877
(583,877)
-
-
Pension reserve
(233,000)
-
(32,000)
265,000
-
(233,000)
3,099,964
(3,320,635)
453,671
-
Restricted fixed asset funds
Inherited on conversion
5,734,381
-
(135,593)
-
5,598,788
Assets funded from grants
531,768
779,051
(782,314)
4,419
532,924
6,266,149
779,051
(917,907)
4,419
6,131,712
Total restricted funds
6,033,149
3,879,015
(4,238,542)
458,090
6,131,712
Unrestricted funds
General funds
466,605
165,174
(122,835)
(193,090)
315,854
Total funds
6,499,754
4,044,189
(4,361,377)
265,000
6,447,566
Total funds analysis by academy
2024
2023
Fund balances at 31 August 2024 were allocated as follows:
£
£
Brooke Hill Academy
357,315
381,609
Edith Weston Academy
266,431
209,941
South Witham Academy
(228,386)
(275,696)
Total before fixed assets fund and pension reserve
395,360
315,854
Restricted fixed asset fund
5,964,781
6,131,712
Pension reserve
-
-
Total funds
6,360,141
6,447,566
BROOKE HILL ACADEMY TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
18
Funds
(Continued)
- 39 -
Total cost analysis by academy
Expenditure incurred by each academy during the year was as follows:
Teaching and
Other costs
educational
Other support
Educational
excluding
Total
Total
support staff
staff costs
supplies
depreciation
2024
2023
£
£
£
£
£
£
Brooke Hill Academy
1,092,164
353,009
103,984
283,063
1,832,220
1,699,317
Edith Weston Academy
475,916
246,519
39,233
166,978
928,646
885,349
South Witham Academy
341,625
182,974
30,375
101,486
656,460
858,804
1,909,705
782,502
173,592
551,527
3,417,326
3,443,470
19
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
-
-
5,964,781
5,964,781
Current assets
375,255
262,882
-
638,137
Current liabilities
-
(242,777)
-
(242,777)
Total net assets
375,255
20,105
5,964,781
6,360,141
Unrestricted
Restricted funds:
Total
Funds
General
Fixed asset
Funds
£
£
£
£
Fund balances at 31 August 2023 are represented by:
Tangible fixed assets
-
-
6,131,712
6,131,712
Current assets
315,854
394,223
-
710,077
Current liabilities
-
(394,223)
-
(394,223)
Total net assets
315,854
-
6,131,712
6,447,566
BROOKE HILL ACADEMY TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 40 -
20
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
9,823
6,067
Amounts due in two and five years
21,957
24,267
31,780
30,334
21
Capital commitments
2024
2023
£
£
Expenditure contracted for but not provided in the accounts
-
427,146
22
Reconciliation of net expenditure to net cash flow from operating activities
2024
2023
Notes
£
£
Net expenditure for the reporting period (as per the statement of financial activities)
(31,425)
(317,188)
Adjusted for:
Capital grants from DfE and other capital income
(412,250)
(779,051)
Investment income receivable
6
(8,829)
(4,056)
Defined benefit pension costs less contributions payable
25
(39,000)
20,000
Defined benefit pension scheme finance (income)/cost
25
(17,000)
12,000
Depreciation of tangible fixed assets
173,831
171,284
Loss on disposal of fixed assets
-
837
Decrease in debtors
75,992
47,159
(Decrease)/increase in creditors
(151,446)
64,882
Net cash used in operating activities
(410,127)
(784,133)
23
Analysis of changes in net funds
1 September 2023
Cash flows
31 August 2024
£
£
£
Cash
537,167
4,052
541,219
BROOKE HILL ACADEMY TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 41 -
24
Members' liability

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

25
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 which is managed by Leicestershire County Council and 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.

Contributions amounting to £35,521 were payable to the schemes at 31 August 2024 (2023: £46,775) and are included within creditors.

Teachers' Pension Scheme
Introduction

The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pension Scheme Regulations 2014. Membership is automatic for teachers in academy trusts. All teachers have the option to opt out of the TPS following enrolment.

The TPS is an unfunded scheme to which both the member and employer makes contributions, as a percentage of salary. These contributions are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

Valuation of the Teachers' Pension Scheme

The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to 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 £302,031 (2023: £292,470).

BROOKE HILL ACADEMY TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
25
Pension and similar obligations
(Continued)
- 42 -

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 21.5% for employers and 5.5 to 9.5% for employees.

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

Total contributions made
2024
2023
£
£
Employer's contributions
171,000
176,000
Employees' contributions
164,000
41,000
Total contributions
335,000
217,000
Principal actuarial assumptions
2024
2023
%
%
Rate of increase in salaries
3.5
3.7
Rate of increase for pensions in payment/inflation
2.7
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
19.0
19.1
- Females
24.0
23.9
Retiring in 20 years
- Males
21.1
21.2
- Females
25.0
25.0
BROOKE HILL ACADEMY TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
25
Pension and similar obligations
(Continued)
- 43 -

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

2024
2023
£
£
0.5% decrease in Real Discount Rate
139,500
118,500
0.5% increase in the Pension Increase Rate (CPI)
133,000
113,000
0.5% increase in the Salary Increase Rate
3,000
8,000
The academy trust's share of the assets in the scheme
2024
2023
Fair value
Fair value
£
£
Equities
1,309,430
1,283,540
Bonds
733,840
671,480
Cash
171,030
50,440
Asset ceiling adjustment
(190,000)
(282,000)
Property
154,730
157,540
Other assets
116,970
57,000
Total market value of assets
2,296,000
1,938,000
The actual return on scheme assets was £(45,000) (2023: £(260,000)).
Amount recognised in the statement of financial activities
2024
2023
£
£
Current service cost
132,000
196,000
Interest income
(123,000)
(88,000)
Interest cost
106,000
100,000
Total operating charge
115,000
208,000
Changes in the present value of defined benefit obligations
2024
2023
£
£
At 1 September 2023
1,938,000
2,204,000
Current service cost
132,000
196,000
Interest cost
106,000
100,000
Employee contributions
41,000
41,000
Actuarial loss/(gain)
11,000
(615,000)
Benefits paid
68,000
(28,000)
Effect of non-routine settlements and administration expenses
-
40,000
At 31 August 2024
2,296,000
1,938,000
BROOKE HILL ACADEMY TRUST LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
25
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
1,938,000
1,971,000
Interest income
-
88,000
Actuarial (gain)/loss
237,000
(348,000)
Employer contributions
171,000
176,000
Employee contributions
164,000
41,000
Benefits paid
68,000
(28,000)
Effect of non-routine settlements and administration expenses
-
38,000
Asset ceiling adjustment
(282,000)
-
At 31 August 2024
2,296,000
1,938,000

The actuarial valuation prepared under FRS102 in respect of the Local Government Pension Schemes indicated that the Trust’s share of the schemes were in surplus as at the year end to the value of £472,000 in total (2023: £282,000). 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 future contributions in the future.

26
Related party transactions

Owing to the nature of the academy trust's operations and the composition of the board of trustees being drawn from local public and private sector organisations, transactions may take place with organisations in which the academy trust has an interest. All transactions involving such organisations are conducted at arm's length and in accordance with the academy trust's financial regulations and normal procurement procedures.

 

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

 

No related party transactions took place in the period of account other than certain trustees' remuneration and expenses already disclosed in note 12.

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