Company registration number 07318714 (England and Wales)
ABBEY ACADEMIES TRUST
(A COMPANY LIMITED BY GUARANTEE)
ANNUAL REPORT AND ACCOUNTS
FOR THE YEAR ENDED
31 AUGUST 2024
31 August 2024
ABBEY ACADEMIES TRUST
CONTENTS
Page
Reference and administrative details
1
Trustees' report
2 - 11
Governance statement
12 - 15
Statement on regularity, propriety and compliance
16
Statement of trustees' responsibilities
17
Independent auditor's report on the accounts
18 - 21
Independent reporting accountant's report on regularity
22 - 23
Statement of financial activities including income and expenditure account
24 - 25
Balance sheet
26
Statement of cash flows
27
Notes to the accounts including accounting policies
28 - 50
ABBEY ACADEMIES TRUST
REFERENCE AND ADMINISTRATIVE DETAILS
- 1 -
Members
Mr D Pickering
Mr P Thompson
Mr D N Page
Mr S Haigh
Mr P Lister (from 21/11/2023)
Trustees
Mrs A Eggleston
Mr S Haigh (Chair of Trustees)
Mrs S J Moore (Accounting Officer)
Mr C R Bates
Dr F H P Brierley
Mr P E Gandy
Mr S Farnaby
Mr S Buckman (Appointed 2 May 2024)
Senior management team
- Executive Headteacher
Mrs S J Moore
- Chief Finance Officer
Mrs J Parsons
- Chief Operating Officer
Mrs S J Bates
Company secretary
Mrs S J Bates
Company registration number
07318714 (England and Wales)
Principal and registered office
Abbey Road
Bourne
Lincolnshire
PE10 9EP
United Kingdom
Academies operated
Location
Executive Headteacher
Colsterworth Church of England Primary School
Colsterworth
Mrs S J Moore
Bourne Abbey Church of England Primary Academy (BAPA)
Bourne
Mrs S J Moore
Bourne Elsea Park Church of England Primary Academy (BEPPA)
Bourne
Mrs S J Moore
Independent auditor
Azets Audit Services
Westpoint
Lynch Wood
Peterborough
Cambridgeshire
PE2 6FZ
United Kingdom
Bankers
National Westminster PLC
Market Place
Spalding
Lincolnshire
PE11 1ST
United Kingdom
ABBEY ACADEMIES TRUST
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 2 -

The trustees present their annual report together with the accounts and auditor's report of the charitable company for the year 1 September 2023 to 31 August 2024. The annual report serves the purposes of both a trustees' report, and a directors' report and strategic report under company law.

Structure, governance and management
Constitution

The 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 trust.

The trustees of Abbey Academies Trust 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

From the articles to provide indemnity insurance to cover the liability of governors which by virtue of any rule of law should otherwise attach to them in respect of any negligence, breach of trust or breach of duty of which they may be guilty in relation to the academy trust. Provided that any such insurance shall not extend to any claim arising from any act or omission, which the trustees knew to be in breach of trust or breach of duty, and provided also that any such insurance shall not extend to costs of any unsuccessful defence to a criminal prosecution against the trustees in their capacity as trustees.

Method of recruitment and appointment or election of trustees

Subject to Articles 48 - 49 and 64, the academy trust shall have the following trustees:

a. Not less than 9 trustees, appointed under Article 50

b. Up to 2 Staff Governors, if appointed under Article 50A

c. 2 Parent Governors appointed under Articles 53-58. A Parent Governor must be a parent of the pupil at the Academy at the time when he is elected;

d. The Principal;

e. Any Additional Governors, if appointed under Article 62, 62A or 68A; and

f. Any Further Governors, if appointed under Article 63 or Article 68A.

 

The Academy Trust may also have any Co-opted Governor appointed under Article 59.

 

The term of office for any Governor (other than Co-opted Governors under Article 59) shall be 4 years, save that this time limit shall not apply to the Principal, the Diocesan Bishop, the Incumbent, the Area Dean. Subject to remaining eligible to be a particular type of Governor, any Governor may be re-appointed or re-elected.

 

A Local Governing Board (LGB) for each individual school is in place to undertake the day to day running of each school in line with the agreed Scheme of Delegation.

Policies and procedures adopted for the induction and training of trustees

The training and induction provided for new trustees depends on their existing experience. Where necessary induction provides training on charity and educational legal and financial matters. All trustees and governors are provided with copies of terms of reference, policies, procedures, minutes, accounts, budgets, plans and other documents that they will need to undertake their role as trustees and governors.

ABBEY ACADEMIES TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 3 -
Organisational structure

The organisational structure of the trust consists of four levels: The members, trustees, governors and the senior leadership team. The aim of the organisational structure is to devolve responsibility and encourage involvement in decision making at all levels.

 

The trust is governed by the board of trustees which delegates functions as appropriate to the local governing body of each academy.

 

The trustees are responsible for all areas covered under the funding agreements and all areas of statutory responsibility appertaining to the trust which include setting general policy, adopting an annual improvement plan for both academies and budget for the trust, monitoring the academies by the use of budgets and making major decisions about the direction of the academy trust, capital expenditure and senior staff appointments.

 

The governors of each academy are responsible for monitoring the performance of their academy, focusing on academic standards and leadership. This includes regular scrutiny and challenge of the Executive Headteacher and senior leadership team. The Chief Financial Officer is the lead officer responsible for finance and reports to the local governing body on financial performance against delegated budget levels.

 

The Executive Headteacher and senior leadership team at each academy are responsible at an executive level for implementing the policies as agreed by the trustees and any local operating procedures as approved by the local governing bodies. As a group the senior leaders are responsible for the authorisation of spending within agreed budgets and the appointment of staff.

Arrangements for setting pay and remuneration of key management personnel

The policy for teacher’s pay sets out the framework for making decisions on teachers’ pay. It has been developed to comply with current legislation and the requirements of the School Teachers’ Pay and Conditions Document (STPCD) and has been consulted on with staff.

 

The policy for support staff pay sets out the framework for making decisions on support staff pay. It has been developed to comply with current legislation and has been consulted on with staff.

 

In adopting these pay policies the aim is to:

 

 

Pay decisions at the trust are made by the Finance, Pay & Audit Committee in consultation with the Executive Headteacher.

Trade union facility time
There has been no time spent on trade union facility time during the year.
Related parties and other connected charities and organisations

Transactions with related parties are detailed in note 28.

ABBEY ACADEMIES TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 4 -
Objectives and activities
Objects and aims

The principal objective and activity of Abbey Academies Trust is to provide education for pupils of different abilities between the ages of 2 and 11 years and to further support the national and local school improvement agenda.

 

Abbey Academies Trust is a Multi Academy Trust (MAT) which includes Bourne Abbey Church of England Primary Academy, Bourne Elsea Park Church of England Primary Academy and Colsterworth Church of England Primary School.

 

The Executive Headteacher of Abbey Academies Trust leads the partnership of the three schools. Each academy has its own Head of School to oversee its day-to-day running. There has successfully been created a sense of shared identity and common purpose which also promotes and preserves each academy’s individual character and ethos.

 

As Church of England academies, pupils at Bourne Abbey, Bourne Elsea Park and Colsterworth are encouraged to strive for excellence in the core subjects, but to broaden their education, to embrace and develop the concepts of faith and spirituality, of hope and charity and to enable them to make informed decisions later in life as broad-minded and knowledgeable British and world citizens.

 

The Executive Headteacher is a National Leader (NLE) and Bourne Abbey is deemed a National Support School (NSS). Bourne Abbey as NLE/NSS works on an improvement agenda with other named schools which are often identified by the Local Authority, Diocese and DfE as being in need of support.

 

The main objectives of Abbey Academies Trust during the year ended 31 August 2024 are summarised below.

 

Objectives, strategies and activities

The main strategy across Abbey Academies Trust, which includes both academies, is encompassed in our mission statement which is ‘Striving for Excellence – Caring for All within a loving and caring Christian environment’. To this end the activities provided include:

 

Public benefit

The trustees have complied with their duty to have due regard to the guidance on public benefit issued by the Charity Commission in exercising their powers and duties.

ABBEY ACADEMIES TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 5 -
Strategic report
Achievements and performance

Abbey Academies Trust (previously Bourne Abbey Church of England Primary Academy) is in its twelfth year of operation as an academy and continues to set strategic goals related to achievement, attainment, engagement and provision. These goals are monitored closely by the trust body.

Key outcomes

This has been another successful year for all three schools in Abbey Academies Trust, despite some leadership staffing challenges. In her MAT Summary report for the academic year 2023-2024, June Richardson, Diocesan School Effectiveness Advisor states ‘This year the trust has managed a number of changes to senior leadership which has impacted all three schools. Inevitably senior staffing changes brings challenge and additional pressures around recruitment and induction of new staff. Leaders are aware that these changes have had more impact at Bourne Elsea Park. It takes strong leadership to manage these changes and it was pleasing to hear that parents had remained supportive during the transition period. Leaders have identified the strength of leadership which other school-based directors, including for church school distinctiveness, have been able to provide which has brought stability. Interim SENCOs have also been in place but work to support the most vulnerable has continued to be prioritised.’

 

We have a data picture for 2023-24, which includes careful monitoring of those in receipt of Pupil Premium. Rigorous analysis of the data from key assessment points throughout the year has been undertaken. From this, clear provision maps were written, identifying vulnerable groups, in preparation for the children’s return in September 2024. Our results at EYFS, Y1/Y2 phonics, Y4 MTC and KS1/ KS2 SATs results are at least in line with local and National. Indeed, in many cases our outcomes significantly exceed local and National, especially at Colsterworth. External LA moderation of Year 6 at Bourne Elsea Park and Colsterworth, agreed with all teacher judgements and moderator comments included that we should keep up our ‘excellent practice’. Outcomes in writing are once again well above National and local for pupils reaching the expected standard and those reaching higher standard. These sustained successful outcomes are in part due to the impact of our broad, balanced and engaging curriculum, as well as impactful provision mapping/intervention for all those pupils not on target throughout the year.

 

Provision continues to be in place for children to ‘Catch-Up’ and diminish any difference. Regular Pupil Progress Meetings will continue to be held for any pupils not making expected progress. A key focus will be all PP pupils, including those who are more able. Please see our Pupil Premium Strategy Statement for 2024-2025 which will be on our school website after it has been agreed by the Local Governing Body in November 2024. Attendance of PP pupils will again also be closely monitored, and pastoral support put in place for those who are vulnerable.

 

ABBEY ACADEMIES TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 6 -

 

ABBEY ACADEMIES TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 7 -
ABBEY ACADEMIES TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 8 -
Going concern

After making appropriate enquiries, the trustees have a reasonable expectation that the trust has adequate resources to continue in operational existence for the foreseeable future. A detailed letter outlining the Trust's plan has been submitted to the ESFA. For this reason the trustees continue to adopt the going concern basis in preparing the accounts. Further details regarding the adoption of the going concern basis can be found in the statement of accounting policies.

Financial review

The academy trust held fund balances at 31 August 2024 of £7,414,070 comprising £7,391,457 of restricted funds and £22,613 of unrestricted funds. Of the restricted funds, £7,573,679 is represented by tangible fixed assets.

Whilst an element of education funding is ring-fenced, in real terms per pupil funding is reducing year on year. Increases in staff salaries and pension contributions are not reflected in GAG income.

 

Key performance Indicators:

 

 

The trustees fully understand what Abbey Academies Trust does well and where it could improve. They have achieved this understanding by receiving clear information from the Executive Headteacher/Senior Leaders/Local authority and national sources in the form of documentation, training, discussions at meetings, and by their own visits to the academies. As a result, they are informed about what happens in school, how this can be compared and benchmarked locally and nationally and are able to provide the necessary support and challenge in making strategically important decisions.

ABBEY ACADEMIES TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 9 -
Reserves policy

The trustees review the reserves level of the trust annually. The review takes into account the nature of the income and expenditure streams. The trustees have determined that the appropriate level of reserves is £200,000 at trust level and the equivalent of one month’s operating expenditure for each academy. Last year the trustees believed that they were on target to achieve this level of reserves, however, due to increased costs and unfunded salary increases a deficit has arisen in the year reducing the overall level of available funds. The trustees are reviewing how they can get back on target to meet the policy. Savings have already been implemented for the 2024-25 academic year and further savings for the 2025-26 academic year are being discussed. The trustees believe that future breakeven budgets can be achieved and the Trust’s reserves will start to build back up to the recommended level in accordance with the reserves policy.

 

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

Investment policy

Under the Memorandum and Articles of Association, the trust has the power to invest funds not immediately required for its own purposes, in any way the trustees see fit. The organisation has a positive cash balance to cover eventualities and unforeseen expenses. The banking facilities are reviewed on a regular basis.

Principal risks and uncertainties

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

 

Comprehensive knowledge of buildings and their conditions enables the trust to plan and prioritise maintenance and construction work. Government guidance in relation to Reinforced Autoclaved Aerated Concrete (RAAC) has been followed and none has been identified in any of our buildings.

Fundraising

The Student Council vote on and organise fundraising events during the year. The trust does not use professional fundraisers or involve commercial participants. There have been no complaints about fundraising activity this year.

Plans for future periods

Abbey Academies Trust will continue to strive and improve levels of achievement and attainment for all its pupils whilst providing a high quality caring and nurturing educational environment for all and working in pursuit of community cohesion. The trust also deems its work in pursuit of sharing and developing good practice and training new teachers through the work of Bourne Abbey as NLE/NSS to be a core part of its activity.

 

The trust aims to provide opportunity to enhance the educational environment in the academic year 2024/25 by:

 

Early Years Foundation Stage

ABBEY ACADEMIES TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 10 -

Quality of Education

 

Personal Development, Behaviour and Attitudes

    - Further embed their knowledge of Understanding Christianity;

    - Continue to develop their understanding of wider faiths.

ABBEY ACADEMIES TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 11 -

Leadership and Management

 

These plans have been presented to the trustees and will be monitored throughout the year.

Funds held as custodian trustee on behalf of others

The trust and its trustees do not act as the custodian trustees of any charity.

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 27 November 2024 and signed on its behalf by:

Mr S Haigh
Chair of Trustees
ABBEY ACADEMIES TRUST
GOVERNANCE STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024
- 12 -
Scope of responsibility

As trustees, we acknowledge we have overall responsibility for ensuring that Abbey Academies Trust 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 Headteacher, as accounting officer, for ensuring financial controls conform with the requirements of both propriety and good financial management and in accordance with the requirements and responsibilities assigned to it in the funding agreement between Abbey Academies Trust and the Secretary of State for Education. The accounting officer is also responsible for reporting to the board of trustees any material weaknesses or breakdowns in internal control.

Governance

The information on governance included here supplements that described in the Trustees' Report and in the Statement of Trustees' Responsibilities. The board of trustees has formally met 3 times during the year. Attendance during the year at meetings of the board of trustees was as follows:

Trustees
Meetings attended
Out of possible
Mrs A Eggleston
1
3
Mr S Haigh (Chair of Trustees)
3
3
Mrs S J Moore (Accounting Officer)
3
3
Mr C R Bates
3
3
Dr F H P Brierley
1
3
Mr P E Gandy
3
3
Mr S Farnaby
3
3
Mr S Buckman (Appointed 2 May 2024)
0
1
Conflicts of interest

All Members, Trustees, Governors and staff with purchasing authority are required to declare their interests annually by completing the Register of Business Interests pro forma. The original is held by the Clerk on behalf of the Trust.

 

To be effective, the declaration of interests form needs to be updated at least annually, and also when any changes occur.

 

Members, Trustees, Governors and staff of Abbey Academies Trust are advised that if they are not sure what to declare, or whether/when any declaration needs to be updated, they should err on the side of caution. The Chair of the Board of Trustees will provide advice and it is their responsibility to ensure that professional advice (i.e. from the auditors) is sought where necessary.

 

At each meeting, the Clerk will ask for any conflicts of interest to be declared. Interested board members may not vote on matters affecting their own interests and they must absent themselves from the discussion and the decision-making process.

The Finance, Pay and Audit committee is a sub-committee of the main board of trustees. Its purpose is to provide guidance and assistance to the Executive Headteacher and the board of trustees in all matters relating to budgeting and finance.

ABBEY ACADEMIES TRUST
GOVERNANCE STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 13 -

Attendance at meetings in the year was as follows:

Trustees
Meetings attended
Out of possible
Mrs A Eggleston
5
5
Mr S Haigh (Chair of Trustees)
5
5
Mrs S J Moore (Accounting Officer)
4
5
Mr C R Bates
5
5
Review of value for money

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

 

Improving educational results

Ensuring that resources are directed where they are most needed and most effective in meeting educational requirements, for example by:

 

Staffing

 

Financial Governance and Oversight

 

Better purchasing:

 

Estates management:

ABBEY ACADEMIES TRUST
GOVERNANCE STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 14 -
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 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 Abbey Academies Trust 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 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 trust's significant risks that has been in place for the period 1 September 2023 to 31 August 2024 and up to the date of approval of the annual report and accounts. This process is regularly reviewed by the board of trustees.

The risk and control framework

The 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 decided:

 

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

 

The auditor reports to the board of trustees through the audit committee on the operation of the systems of control and on the discharge of the financial responsibilities of the board of trustees, and annually prepares an annual summary report to the committee outlining the areas reviewed, key findings, recommendations and conclusions to help the committee consider actions and assess year on year progress.

Review of effectiveness

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

 

ABBEY ACADEMIES TRUST
GOVERNANCE STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 15 -

The accounting officer has been advised of the implications of the result of their review of the system of internal control by the Finance, Pay and Audit committee and a plan to address weaknesses and ensure continuous improvement of the system is in place.

Conclusion

Based on the advice of the audit and risk committee and the accounting officer, the board of trustees is of the opinion that the trust has an adequate and effective framework for governance, risk management and control.

Approved by order of the board of trustees on 27 November 2024 and signed on its behalf by:

Mr S Haigh
Mrs S J Moore
Chair of Trustees
Accounting Officer
ABBEY ACADEMIES TRUST
STATEMENT OF REGULARITY, PROPRIETY AND COMPLIANCE
FOR THE YEAR ENDED 31 AUGUST 2024
- 16 -

As accounting officer of Abbey Academies Trust, I have considered my responsibility to notify the 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 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 trust's board of trustees are able to identify any material irregular or improper use of funds by the trust, or material non-compliance with the terms and conditions of funding under the trust's funding agreement and the Academy Trust Handbook 2023.

I confirm that no instances of material irregularity, impropriety or funding non-compliance have been discovered to date. If any instances are identified after the date of this statement, these will be notified to the board of trustees and ESFA.

Mrs S J Moore
Accounting Officer
27 November 2024
ABBEY ACADEMIES TRUST
STATEMENT OF TRUSTEES' RESPONSIBILITIES
FOR THE YEAR ENDED 31 AUGUST 2024
- 17 -

The trustees (who are also the directors of Abbey Academies Trust 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 27 November 2024 and signed on its behalf by:

Mr S Haigh
Chair of Trustees
ABBEY ACADEMIES TRUST
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ABBEY ACADEMIES TRUST
FOR THE YEAR ENDED 31 AUGUST 2024
- 18 -

Opinion

We have audited the accounts of Abbey Academies Trust 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 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.

Material uncertainty relating to going concern

We draw your attention to note 1.2 in the financial statements, which indicates that a significant deficit has been incurred during the year reducing available reserves to below the Trust’s reserves policy. These conditions indicate that a material uncertainty exists that may cast significant doubt on the academy's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

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.

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.

ABBEY ACADEMIES TRUST
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ABBEY ACADEMIES TRUST (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 19 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the 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 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

ABBEY ACADEMIES TRUST
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ABBEY ACADEMIES TRUST (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 20 -

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

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

 

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

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

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.

 

ABBEY ACADEMIES TRUST
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ABBEY ACADEMIES TRUST (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 21 -

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Mr Mark Jackson FCA DChA (Senior Statutory Auditor)
for and on behalf of Azets Audit Services
18 December 2024
Chartered Accountants
Statutory Auditor
Westpoint
Lynch Wood
Peterborough
Cambridgeshire
United Kingdom
PE2 6FZ
ABBEY ACADEMIES TRUST
INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO ABBEY ACADEMIES TRUST AND THE EDUCATION AND SKILLS FUNDING AGENCY
FOR THE YEAR ENDED 31 AUGUST 2024
- 22 -

In accordance with the terms of our engagement letter dated 6 September 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 Abbey Academies Trust 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 Abbey Academies Trust and ESFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to the Abbey Academies Trust 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 Abbey Academies Trust and ESFA, for our work, for this report, or for the conclusion we have formed.

Respective responsibilities of Abbey Academies Trust's accounting officer and the reporting accountant

The accounting officer is responsible, under the requirements of Abbey Academies Trust’s funding agreement with the Secretary of State for Education dated 30 November 2010 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 trust's income and expenditure.

The work undertaken to draw to our conclusion includes:

 

ABBEY ACADEMIES TRUST
INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO ABBEY ACADEMIES TRUST AND THE EDUCATION AND SKILLS FUNDING AGENCY (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 23 -
Conclusion

In the course of our work, nothing has come to our attention which suggests that in all material respects the expenditure disbursed and income received during the period 1 September 2023 to 31 August 2024 has not been applied to purposes intended by Parliament and the financial transactions do not conform to the authorities which govern them.

Reporting Accountant
Azets Audit Services
Westpoint
Lynch Wood
Peterborough
Cambridgeshire
PE2 6FZ
United Kingdom
Dated: 18 December 2024
ABBEY ACADEMIES TRUST
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2024
- 24 -
Unrestricted
Restricted funds:
Total
Total
funds
General
Fixed asset
2024
2023
Notes
£
£
£
£
£
Income and endowments from:
Donations and capital grants
3
9,287
-
330,912
340,199
117,323
Charitable activities:
- Funding for educational operations
4
127,668
6,010,902
-
6,138,570
5,885,559
- Provision of childcare
29
767,815
-
-
767,815
532,674
Other trading activities
5
19,613
-
-
19,613
17,010
Investments
6
5,964
-
-
5,964
6,374
Total
930,347
6,010,902
330,912
7,272,161
6,558,940
Expenditure on:
Charitable activities:
- Educational operations
8
131,774
6,560,518
564,355
7,256,647
6,579,342
- Provision of childcare
29
567,681
-
-
567,681
450,897
Total
7
699,455
6,560,518
564,355
7,824,328
7,030,239
Net income/(expenditure)
230,892
(549,616)
(233,443)
(552,167)
(471,299)
Transfers between funds
20
(638,383)
762,616
(124,233)
-
-
Other recognised gains/(losses)
Actuarial (losses)/gains on defined benefit pension schemes
27
-
(67,000)
-
(67,000)
34,000
Adjustment for restriction on pension assets
27
-
(146,000)
-
(146,000)
-
Net movement in funds
(407,491)
-
(357,676)
(765,167)
(437,299)
Reconciliation of funds
Total funds brought forward
430,104
-
7,749,133
8,179,237
8,616,536
Total funds carried forward
22,613
-
7,391,457
7,414,070
8,179,237
ABBEY ACADEMIES TRUST
STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED)
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2024
- 25 -
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
8,704
-
108,619
117,323
Charitable activities:
- Funding for educational operations
4
135,619
5,749,940
-
5,885,559
- Provision of childcare
29
532,674
-
-
532,674
Other trading activities
5
17,010
-
-
17,010
Investments
6
6,374
-
-
6,374
Total
700,381
5,749,940
108,619
6,558,940
Expenditure on:
Charitable activities:
- Educational operations
8
140,862
6,135,068
303,412
6,579,342
- Provision of childcare
29
450,897
-
-
450,897
Total
7
591,759
6,135,068
303,412
7,030,239
Net income/(expenditure)
108,622
(385,128)
(194,793)
(471,299)
Transfers between funds
20
(126,777)
153,468
(26,691)
-
Other recognised gains/(losses)
Actuarial gains on defined benefit pension schemes
27
-
34,000
-
34,000
Net movement in funds
(18,155)
(197,660)
(221,484)
(437,299)
Reconciliation of funds
Total funds brought forward
448,259
197,660
7,970,617
8,616,536
Total funds carried forward
430,104
-
7,749,133
8,179,237
ABBEY ACADEMIES TRUST
BALANCE SHEET
AS AT 31 AUGUST 2024
- 26 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
14
7,573,679
7,792,368
Current assets
Stock
15
-
271
Debtors
16
328,505
320,286
Cash at bank and in hand
154,669
559,765
483,174
880,322
Current liabilities
Creditors: amounts falling due within one year
17
(477,194)
(442,433)
Net current assets
5,980
437,889
Total assets less current liabilities
7,579,659
8,230,257
Creditors: amounts falling due after more than one year
19
(165,589)
(51,020)
Net assets excluding pension asset
7,414,070
8,179,237
Defined benefit pension scheme asset
27
-
-
Total net assets
7,414,070
8,179,237
Funds of the trust:
Restricted funds
20
- Fixed asset funds
7,391,457
7,749,133
Total restricted funds
7,391,457
7,749,133
Unrestricted income funds
20
22,613
430,104
Total funds
7,414,070
8,179,237

The accounts on pages 24 to 50 were approved by the trustees and authorised for issue on 27 November 2024 and are signed on their behalf by:

Mr S Haigh
Chair of Trustees
Company registration number 07318714 (England and Wales)
ABBEY ACADEMIES TRUST
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024
- 27 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Net cash used in operating activities
24
(866,205)
(313,914)
Cash flows from investing activities
Dividends, interest and rents from investments
5,964
6,374
Capital grants from DfE Group
330,912
108,619
Purchase of tangible fixed assets
-
(49,915)
Net cash provided by investing activities
336,876
65,078
Cash flows from financing activities
Repayment of long term bank loan
124,233
35,293
Net cash provided by financing activities
124,233
35,293
Net decrease in cash and cash equivalents in the reporting period
(405,096)
(213,543)
Cash and cash equivalents at beginning of the year
559,765
773,308
Cash and cash equivalents at end of the year
154,669
559,765
ABBEY ACADEMIES TRUST
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 28 -
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 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, i.e. 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 make this assessment in respect of a period of at least one year from the date of authorisation for issue of the accounts. Due to increased costs and unfunded salary increases, a significant deficit has been incurred during the year reducing available reserves to a minimal amount, significantly below the Trust’s reserves policy. The Trustees are actively managing the financial position and savings have already been implemented for the 2024-25 academic year. Further savings are being discussed for the 2025-26 academic year and the trustees believe that future breakeven budgets can be achieved. Thus they continue to adopt the going concern basis of accounting in preparing the accounts.

1.3
Income

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

Grants

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

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

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

Donations

Donations are recognised on a receivable basis (where there are no performance-related conditions) where the receipt is probable and the amount can be reliably measured.

Other income

Other income, including the hire of facilities, is recognised in the period it is receivable and to the extent the trust has provided the goods or services.

ABBEY ACADEMIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 29 -
Donated goods, facilities and services

The value of donated services and gifts in kind provided to the trust are recognised at their open market value in the period in which they are receivable as income, where the benefit to the trust can be reliably measured. An equivalent amount is included as expenditure under the relevant heading in the statement of financial activities, except where the gift in kind was a fixed asset in which case the amount is included in the appropriate fixed asset category and depreciated over the useful economic life in accordance with the trust's policies. The value of donated time from volunteers has not been included in these accounts.

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 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 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 trust's educational operations, including support costs and costs relating to the governance of the trust apportioned to charitable activities.

Governance costs

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

ABBEY ACADEMIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 30 -
1.5
Tangible fixed assets and depreciation

Assets costing £10,000 or more are capitalised as tangible fixed assets and are carried at cost, net of depreciation and any provision for impairment.

 

Where tangible fixed assets have been acquired with the aid of specific grants, either from the government or from the private sector, they are included in the balance sheet at cost and depreciated over their expected useful economic life. The related grants are credited to a restricted fixed asset fund in the statement of financial activities and carried forward in the balance sheet. Depreciation on such assets is charged to the restricted fixed asset fund in the statement of financial activities so as to reduce the fund over the useful economic life of the related asset on a basis consistent with the trust's depreciation policy. Where tangible fixed assets have been acquired with unrestricted funds, depreciation on such assets is charged to the unrestricted fund.

 

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

 

Leasehold property inherited from the Local Authority on conversion to an academy was professionally valued on a depreciated replacement cost basis at 31 August 2012, commissioned by the ESFA.

 

Leasehold property provided to the trust immediately on completion of the building being constructed is included at a value equivalent to the cost of the building.

 

Leasehold property inherited from the Local Authority on conversion to an academy during the year has been valued by the trustees using an average square footage calculation.

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 property
2% straight line
Fixtures, fittings & equipment
3 years straight line

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

1.6
Liabilities

Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the 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 trust only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the 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.

ABBEY ACADEMIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 31 -
Financial liabilities

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

 

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

1.9
Stock

Stock is valued at the lower of cost and net realisable value. Net realisable value is based on estimated selling price less further costs to completion and disposal. Provision is made for obsolete and slow moving stock.

1.10
Taxation

The 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 trust is potentially exempt from taxation in respect of income or capital gains received within categories covered by chapter 3 part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

1.11
Pensions benefits

Retirement benefits to employees of the 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 trust.

The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees' working lives with the 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 on the basis of quadrennial valuations using a projected unit 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 trust in separate trustee administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit credit method and discounted at a rate equivalent to the current rate of return on a high-quality corporate bond of equivalent term and currency to the liabilities. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The amounts charged to net income or expenditure are the current service costs and the costs of scheme introductions, benefit changes, settlements and curtailments. They are included as part of staff costs as incurred. Net interest on the net defined benefit liability/asset is also recognised in the statement of financial activities and comprises the interest cost on the defined benefit obligation and interest income on the scheme assets, calculated by multiplying the fair value of the scheme assets at the beginning of the period by the rate used to discount the benefit obligations. The difference between the interest income on the scheme assets and the actual return on the scheme assets is recognised in other recognised gains and losses. Actuarial gains and losses are recognised immediately in other recognised gains and losses.

1.12
Fund accounting

Unrestricted income funds represent those resources which may be used towards meeting any of the charitable objects of the trust at the discretion of the trustees.

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

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

ABBEY ACADEMIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 32 -
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 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 27, 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.

3
Donations and capital grants
Unrestricted
Restricted
Total
Total
funds
funds
2024
2023
£
£
£
£
Capital grants
-
330,912
330,912
108,619
Other donations
9,287
-
9,287
8,704
9,287
330,912
340,199
117,323
ABBEY ACADEMIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 33 -
4
Funding for the trust's charitable activities
Unrestricted
Restricted
Total
Total
Educational operations
funds
funds
2024
2023
£
£
£
£
DfE/ESFA grants
General annual grant (GAG)
-
4,507,706
4,507,706
4,479,815
Other DfE/ESFA grants:
- UIFSM
-
105,996
105,996
116,995
- Pupil premium
-
341,105
341,105
325,910
- PE and sports premium
-
56,640
56,640
56,640
- Teachers pension grant
-
40,484
40,484
5,890
- Teachers pay grant
-
79,648
79,648
2,085
- Others
-
186,591
186,591
240,895
-
5,318,170
5,318,170
5,228,230
Other government grants
Local authority grants
-
563,776
563,776
472,875
Other incoming resources
127,668
128,956
256,624
184,454
Total funding for educational operations
127,668
6,010,902
6,138,570
5,885,559
Provision of childcare
767,815
-
767,815
532,674
Total funding
895,483
6,010,902
6,906,385
6,418,233
5
Other trading activities
Unrestricted
Restricted
Total
Total
funds
funds
2024
2023
£
£
£
£
Hire of facilities
19,613
-
19,613
17,010
6
Investment income
Unrestricted
Restricted
Total
Total
funds
funds
2024
2023
£
£
£
£
Short term deposits
5,964
-
5,964
6,374
ABBEY ACADEMIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 34 -
7
Expenditure
Non-pay expenditure
Total
Total
Staff costs
Premises
Other
2024
2023
£
£
£
£
£
Academy's educational operations
- Direct costs
3,173,091
-
366,882
3,539,973
3,367,382
- Allocated support costs
2,221,860
1,070,244
424,570
3,716,674
3,211,960
Provision of childcare
- Direct costs
-
-
20,147
20,147
20,641
- Allocated support costs
547,534
-
-
547,534
430,256
5,942,485
1,070,244
811,599
7,824,328
7,030,239
Net income/(expenditure) for the year includes:
2024
2023
£
£
Operating lease rentals
12,943
12,445
Depreciation of tangible fixed assets
218,689
206,211
Fees payable to auditor for:
- Audit
8,832
8,530
- Other services
2,000
1,400
Net interest on defined benefit pension liability
(46,000)
(8,000)
8
Charitable activities
Unrestricted
Restricted
Total
Total
funds
funds
2024
2023
£
£
£
£
Direct costs
Educational operations
86,733
3,453,240
3,539,973
3,367,382
Provision of childcare
20,147
-
20,147
20,641
Support costs
Educational operations
45,041
3,671,633
3,716,674
3,211,960
Provision of childcare
547,534
-
547,534
430,256
699,455
7,124,873
7,824,328
7,030,239
ABBEY ACADEMIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
8
Charitable activities
(Continued)
- 35 -
Analysis of costs
Educational
Total
Total
Provision of childcare
operations
2024
2023
£
£
£
£
Direct costs
Teaching and educational support staff costs
-
3,173,091
3,173,091
2,928,646
Staff development
-
29,429
29,429
49,595
Technology costs
-
63,447
63,447
90,673
Educational supplies and services
20,147
171,662
191,809
206,597
Other direct costs
-
102,344
102,344
112,512
20,147
3,539,973
3,560,120
3,388,023
Support costs
Support staff costs
547,534
2,221,860
2,769,394
2,573,777
Depreciation
-
218,689
218,689
206,211
Maintenance of premises and equipment
-
507,356
507,356
98,391
Cleaning
-
75,409
75,409
67,238
Energy costs
-
161,020
161,020
140,514
Rent, rates and other occupancy costs
-
80,902
80,902
83,140
Insurance
-
26,868
26,868
25,920
Catering
-
249,369
249,369
245,477
Finance costs
-
(46,000)
(46,000)
(8,000)
Legal costs
-
3,873
3,873
7,908
Other support costs
-
206,496
206,496
191,710
Governance costs
-
10,832
10,832
9,930
547,534
3,716,674
4,264,208
3,642,216
9
Governance costs
Total
Total
All from restricted funds:
2024
2023
£
£
Amounts included in support costs
Legal costs
3,873
7,908
Auditor's remuneration
- Audit of financial statements
8,832
8,530
- Other audit costs
2,000
1,400
14,705
17,838
ABBEY ACADEMIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 36 -
10
Staff
Staff costs
Staff costs during the year were:
2024
2023
£
£
Wages and salaries
4,609,148
4,208,494
Social security costs
413,512
372,393
Pension costs
896,040
921,536
Staff costs - employees
5,918,700
5,502,423
Agency staff costs
23,785
-
5,942,485
5,502,423
Staff development and other staff costs
29,429
49,595
Total staff expenditure
5,971,914
5,552,018
Staff numbers
The average number of persons employed by the trust during the year was as follows:
2024
2023
Number
Number
Teachers
50
52
Administration and support
137
131
Management
3
3
190
186
Higher paid staff
The number of employees whose employee benefits (excluding employer pension costs and employer national insurance contributions) exceeded £60,000 was:
2024
2023
Number
Number
£60,001 - £70,000
4
3
£120,001 - £130,000
-
1
£140,001 - £150,000
1
-
Key management personnel

The key management personnel of the trust comprise the senior management team as listed on page 1. This year this represents 3 employees (2023 - 3 employees). 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 trust was £370,423 (2023 - £328,754). The trust has redefined those included in key management personnel therefore the following figures for 2023 have been restated.

ABBEY ACADEMIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 37 -
11
Central services

No central services were provided by the trust to its academies during the year and no central charges arose.

12
Trustees' remuneration and expenses

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

 

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

 

Mrs S J Moore (Executive Head Teacher)

    Remuneration £145,000 - £150,000 (2023 - £125,000 - £130,000)

    Employer’s pension contributions £30,000 - £35,000 (2023 - £25,000 - £30,000)

During the year, expenses totalling £2,186 (2023: £3,796) were reimbursed or paid directly to one (2023: one) trustee.

13
Trustees' and officers' insurance

The 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 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 property
Fixtures, fittings & equipment
Total
£
£
£
Cost
At 1 September 2023 and 31 August 2024
9,284,732
427,727
9,712,459
Depreciation
At 1 September 2023
1,565,379
354,712
1,920,091
Charge for the year
185,694
32,995
218,689
At 31 August 2024
1,751,073
387,707
2,138,780
Net book value
At 31 August 2024
7,533,659
40,020
7,573,679
At 31 August 2023
7,719,353
73,015
7,792,368

Leasehold property comprises three properties, two of which are held on licence to use and the other on a 125 year lease, two with Lincolnshire County Council and one with Lincoln Diocesan Board of Education.

ABBEY ACADEMIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 38 -
15
Stock
2024
2023
£
£
Uniform
-
271
16
Debtors
2024
2023
£
£
Trade debtors
500
6,375
VAT recoverable
9,344
6,144
Other debtors
62,948
31,456
Prepayments and accrued income
255,713
276,311
328,505
320,286
17
Creditors: amounts falling due within one year
2024
2023
£
£
Government loans
16,633
6,969
Trade creditors
95,407
41,777
Other taxation and social security
86,227
88,617
Other creditors
141,826
136,685
Accruals and deferred income
137,101
168,385
477,194
442,433
18
Deferred income
2024
2023
£
£
Deferred income is included within:
Creditors due within one year
115,192
145,137
Deferred income at 1 September 2023
145,137
97,152
Released from previous years
(145,137)
(97,152)
Resources deferred in the year
115,192
145,137
Deferred income at 31 August 2024
115,192
145,137

Deferred income relates to amounts paid in advance for the 2024/25 school year for kindergarten places, kids club places, school trip deposits and universal infant free school meals.

ABBEY ACADEMIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 39 -
19
Creditors: amounts falling due after more than one year
2024
2023
£
£
Government loans
165,589
51,020
2024
2023
Analysis of loans
£
£
Not wholly repayable within five years by instalments
92,831
23,142
Wholly repayable within five years
89,391
34,847
182,222
57,989
Less: included in current liabilities
(16,633)
(6,969)
Amounts included above
165,589
51,020
ABBEY ACADEMIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 40 -
20
Funds
Balance at
Gains,
Balance at
1 September
losses and
31 August
2023
Income
Expenditure
transfers
2024
£
£
£
£
£
Restricted general funds
General Annual Grant (GAG)
-
4,507,706
(5,270,322)
762,616
-
UIFSM
-
105,996
(105,996)
-
-
Pupil premium
-
341,105
(341,105)
-
-
Other DfE/ESFA grants
-
363,363
(363,363)
-
-
Other government grants
-
563,776
(563,776)
-
-
Other restricted funds
-
128,956
(128,956)
-
-
Pension reserve
-
-
213,000
(213,000)
-
-
6,010,902
(6,560,518)
549,616
-
Restricted fixed asset funds
Inherited on conversion
7,792,368
-
(218,689)
-
7,573,679
DfE group capital grants
14,754
330,912
(345,666)
-
-
Salix loan
(19,859)
-
-
2,837
(17,022)
CIF loans
(38,130)
-
-
(127,070)
(165,200)
7,749,133
330,912
(564,355)
(124,233)
7,391,457
Total restricted funds
7,749,133
6,341,814
(7,124,873)
425,383
7,391,457
Unrestricted funds
General funds
55,512
70,618
(45,041)
(58,476)
22,613
School fund
48,800
91,914
(86,733)
(53,981)
-
Provision of childcare
325,792
767,815
(567,681)
(525,926)
-
430,104
930,347
(699,455)
(638,383)
22,613
Total funds
8,179,237
7,272,161
(7,824,328)
(213,000)
7,414,070
ABBEY ACADEMIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
20
Funds
(Continued)
- 41 -

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

 

Restricted fixed asset funds

The devolved capital formula grant has to be spent on capital expenditure within 3 years of allocation.

 

The capital expenditure fund represents the net book value of fixed assets purchased.

 

The leasehold property represents the net book value of the leasehold property.

 

Restricted general funds

The restricted grant income in the year all relates to the provision of education for the children of the academy.

 

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

 

Parliament has agreed, at the request of the Secretary of State for Education, to a guarantee that, in the event of academy closure, outstanding Local Government Pension Scheme liabilities would be met by the Department for Education. The guarantee came into force on 18 July 2013.

 

Designated funds

The school fund balances are designated by the trustees for use in a variety of different areas.

ABBEY ACADEMIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
20
Funds
(Continued)
- 42 -
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)
203,660
4,479,815
(4,836,943)
153,468
-
UIFSM
-
116,995
(116,995)
-
-
Pupil premium
-
325,910
(325,910)
-
-
Other DfE/ESFA grants
-
305,510
(305,510)
-
-
Other government grants
-
472,875
(472,875)
-
-
Other restricted funds
-
48,835
(48,835)
-
-
Pension reserve
(6,000)
-
(28,000)
34,000
-
197,660
5,749,940
(6,135,068)
187,468
-
Restricted fixed asset funds
Inherited on conversion
7,926,934
-
(184,481)
49,915
7,792,368
DfE group capital grants
44,649
108,619
(97,201)
(41,313)
14,754
Salix loan
(22,696)
-
-
2,837
(19,859)
CIF loans
-
-
-
(38,130)
(38,130)
Private sector capital sponsorship
21,730
-
(21,730)
-
-
7,970,617
108,619
(303,412)
(26,691)
7,749,133
Total restricted funds
8,168,277
5,858,559
(6,438,480)
160,777
7,749,133
Unrestricted funds
General funds
32,128
63,021
(39,637)
-
55,512
School fund
45,339
104,686
(101,225)
-
48,800
Provision of childcare
370,792
532,674
(450,897)
(126,777)
325,792
448,259
700,381
(591,759)
(126,777)
430,104
Total funds
8,616,536
6,558,940
(7,030,239)
34,000
8,179,237
ABBEY ACADEMIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
20
Funds
(Continued)
- 43 -
Total funds analysis by academy
2024
2023
Fund balances at 31 August 2024 were allocated as follows:
£
£
Colsterworth Church of England Primary School
(122,209)
(297,147)
Bourne Abbey Church of England Primary Academy (BAPA)
33,670
428,778
Bourne Elsea Park Church of England Primary Academy (BEPPA)
111,152
298,473
Total before fixed assets fund and pension reserve
22,613
430,104
Restricted fixed asset fund
7,391,457
7,749,133
Pension reserve
-
-
Total funds
7,414,070
8,179,237
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
£
£
£
£
£
£
Colsterworth Church of England Primary School
499,767
308,166
31,384
146,630
985,947
939,768
Bourne Abbey Church of England Primary Academy (BAPA)
1,797,644
1,825,133
109,854
1,108,179
4,840,810
4,251,951
Bourne Elsea Park Church of England Primary Academy (BEPPA)
875,680
590,095
50,572
262,535
1,778,882
1,632,309
3,173,091
2,723,394
191,810
1,517,344
7,605,639
6,824,028
ABBEY ACADEMIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 44 -
21
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
-
-
7,573,679
7,573,679
Current assets
86,607
396,567
-
483,174
Current liabilities
(63,994)
(396,567)
(16,633)
(477,194)
Non-current liabilities
-
-
(165,589)
(165,589)
Total net assets
22,613
-
7,391,457
7,414,070
Unrestricted
Restricted funds:
Total
Funds
General
Fixed asset
Funds
£
£
£
£
Fund balances at 31 August 2023 are represented by:
Tangible fixed assets
-
-
7,792,368
7,792,368
Current assets
493,171
372,397
14,754
880,322
Current liabilities
(63,067)
(372,397)
(6,969)
(442,433)
Non-current liabilities
-
-
(51,020)
(51,020)
Total net assets
430,104
-
7,749,133
8,179,237
22
Capital commitments
2024
2023
£
£
Expenditure contracted for but not provided in the accounts
-
443,055
23
Long-term commitments
Operating leases
At 31 August 2024 the total of the trust's future minimum lease payments under non-cancellable operating leases was:
2024
2023
£
£
Amounts due within one year
12,943
12,943
Amounts due in two and five years
29,688
42,666
42,631
55,609
ABBEY ACADEMIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 45 -
24
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)
(552,167)
(471,299)
Adjusted for:
Capital grants from DfE and other capital income
(330,912)
(108,619)
Investment income receivable
6
(5,964)
(6,374)
Defined benefit pension costs less contributions payable
27
(167,000)
36,000
Defined benefit pension scheme finance income
27
(46,000)
(8,000)
Depreciation of tangible fixed assets
218,689
206,211
Decrease in stocks
271
117
(Increase)/decrease in debtors
(8,219)
37,572
Increase in creditors
25,097
478
Net cash used in operating activities
(866,205)
(313,914)
25
Analysis of changes in net funds/(debt)
1 September 2023
Cash flows
31 August 2024
£
£
£
Cash
559,765
(405,096)
154,669
Loans falling due within one year
(6,969)
(9,664)
(16,633)
Loans falling due after more than one year
(51,020)
(114,569)
(165,589)
501,776
(529,329)
(27,553)
26
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.

27
Pension and similar obligations

The trust's employees belong to two principal pension schemes: the Teachers' Pension Scheme England and Wales (TPS) for academic and related staff; and the Local Government Pension Scheme (LGPS) for non-teaching staff, which is managed by Lincolnshire County Council. Both are multi-employer defined benefit schemes.

 

The latest actuarial valuation of the TPS related to the period ended 31 March 2020, and that of the LGPS related to the period ended 31 March 2022.

Contributions amounting to £114,882 (2023 - £99,696) were payable to the schemes at 31 August 2024 and are included within creditors.

ABBEY ACADEMIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
27
Pension and similar obligations
(Continued)
- 46 -
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 £491,406 (2023: £570,603).

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 trust is unable to identify its share of the underlying assets and liabilities of the plan. Accordingly, the 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 trust has set out above the information available on the scheme.

Local Government Pension Scheme

The LGPS is a funded defined benefit pension scheme, with the assets held in separate trustee-administered funds. The total contributions are as noted below. The agreed contribution rates for future years are 24.1% for employers and 5.5 to 8.5% 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.

ABBEY ACADEMIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
27
Pension and similar obligations
(Continued)
- 47 -
Total contributions made
2024
2023
£
£
Employer's contributions
493,000
394,000
Employees' contributions
117,000
277,000
Total contributions
610,000
671,000
Principal actuarial assumptions
2024
2023
%
%
Rate of increase in salaries
3.8
3.85
Rate of increase for pensions in payment/inflation
2.8
2.9
Discount rate for scheme liabilities
5.1
5.3
The current mortality assumptions include sufficient allowance for future improvements in mortality rates.  The assumed life expectations on retirement age 65 are:
2024
2023
Years
Years
Retiring today
- Males
19.5
19.5
- Females
22.7
22.6
Retiring in 20 years
- Males
20.7
20.8
- Females
24.1
24.0

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

2024
2023
£
£
0.5% decrease in Real Discount Rate
554,000
522,000
0.5% increase in the Salary Increase Rate
33,000
33,000
0.5% increase in the Pension Increase Rate
531,000
501,000
Defined benefit pension scheme net asset
2024
2023
£
£
Scheme assets
4,490,000
3,741,000
Scheme obligations
(4,490,000)
(3,741,000)
Net asset
-
-
ABBEY ACADEMIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
27
Pension and similar obligations
(Continued)
- 48 -
The trust's share of the assets in the scheme
2024
2023
Fair value
Fair value
£
£
Equities
2,992,000
2,704,000
Bonds
759,000
576,000
Impact of asset ceiling
(970,000)
(638,000)
Property
388,000
325,000
Other assets
1,321,000
774,000
Total market value of assets
4,490,000
3,741,000
The actual return on scheme assets was £494,000 (2023: £(763,000)).
Amount recognised in the statement of financial activities
2024
2023
£
£
Current service cost
326,000
430,000
Interest income
(247,000)
(174,000)
Interest cost
201,000
166,000
Total operating charge
280,000
422,000
Changes in the present value of defined benefit obligations
2024
2023
£
£
At 1 September 2023
3,741,000
3,866,000
Current service cost
326,000
430,000
Interest cost
201,000
166,000
Employee contributions
117,000
103,000
Actuarial loss/(gain)
128,000
(797,000)
Benefits paid
(23,000)
(27,000)
At 31 August 2024
4,490,000
3,741,000
ABBEY ACADEMIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
27
Pension and similar obligations
(Continued)
- 49 -
Changes in the fair value of the trust's share of scheme assets
2024
2023
£
£
At 1 September 2023
3,741,000
3,860,000
Interest income
247,000
-
Actuarial (gain)/loss
247,000
(125,000)
Employer contributions
493,000
394,000
Employee contributions
117,000
277,000
Benefits paid
(23,000)
(27,000)
Impact of asset ceiling
(332,000)
(638,000)
At 31 August 2024
4,490,000
3,741,000

The actuarial valuation prepared under FRS102 in respect of the Local Government Pension Scheme indicated that the Trust’s share of the scheme was in surplus as at the year end to the value of £970,000 (2023: £638,000). 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.

28
Related party transactions

Owing to the nature of the 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 trust has an interest. All transactions involving such organisations are conducted at arm's length and in accordance with the trust's financial regulations and normal procurement procedures.

 

During the period, goods and services totalling £828 were purchased from The William Scott Abbott Trust. One of the members of the academy is also a trustee of The William Scott Abbott Trust.

 

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.

ABBEY ACADEMIES TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 50 -
29
Provision of childcare trading account
2024
2024
2023
2023
£
£
£
£
Direct income
Other direct income
767,815
532,674
Direct costs
Educational supplies and services
20,147
20,641
Other costs
Support staff costs
547,534
430,256
Total expenditure
(567,681)
(450,897)
Transfers between funds excluding depreciation
(525,926)
(126,777)
Deficit from all sources
(325,792)
(45,000)
Provision of childcare balances at 1 September 2023
325,792
370,792
Provision of childcare balances at 31 August 2024
-
325,792
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