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.
Horizons Education Trust operates as a MAT and currently includes Spring Common Academy, special area school with pupils aged 2 - 19 (210 pupils), and Riverside Meadows Academy, Secondary SEMH split-site academy based in St Neots and Wisbech (110 pupils). Opening September 2024, new special area school Prestley Wood Academy, based in Alconbury Weald, Huntingdon.
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 charitable company is known as Horizons Education Trust.
The trustees of Horizons Education 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.
Each member of the charitable company undertakes to contribute to the assets of the charitable company in the event of it being wound up while they are a member, or within one year after they cease to be a member, such amount as may be required, not exceeding £10, for the debts and liabilities contracted before they ceased to be a member.
The Board of Trustees has set out in the articles of association that they must approve any new appointment of trustees to Horizons Education Trust and involve members. In the case of staff or parent representatives if more than one person is nominated an election for the post will be convened and that nominee will be subject to approval and adoption of the Board of Trustees.
Policies and induction training for new Trustees is arranged through Governor Hub.
The CEO is the Accounting Officer and leads day to day strategic work of the Trust, the Director of Finance is the Chief Financial Officer and Headteachers for Spring Common Academy and Riverside Meadows Academy are responsible for operational delivery with their Academy Advisory Groups. Strategic decisions are made by the Full Board of Horizons Education Trust through their Trustees Strategic plan as advised by Finance, People and Premises which includes audit and health & Safety (FPP) and Teaching, Learning & Welfare which includes safeguarding (TLW).
Both academies have a Governing Board called Academy Advisory Group (AAG) to support their operational delivery. They are also able to raise any relevant matters of concern on governance matters with the Board or its committees for them to address.
The Full Board of Trustees provides authorisation in relation to remuneration of key management personnel linked to the agreed staffing structure and budget. Horizons Education Trust adheres to the School Teachers Pay and Conditions Document and the pay scales therein and adopted Cambridgeshire Local Authority pay scales for all Support Staff. Remuneration for the CEO is determined by nominated Trustees with the support of an external adviser and approved by the Board of Trustees.
The CEO provides recommendations in relation to pay to the Finance, People and Premises Committee for authorisation using the salary scales approved by the Full Board of Trustees. For teachers pay, decisions are linked to a Pay Policy and career stage expectation profile that sets the expectations for teachers within main scale and upper pay scales. Objectives for leaders are set in relation to the advisory document ‘National Standards of Excellence for Head Teachers which uses four domains, qualities and knowledge, pupils and staff, systems and processes and the self - improving system.
The Trust does not have 250 employees therefore does not have requirements for Companies (Miscellaneous Reporting) regulations 2019. Spring Common Academy and Riverside Meadows Academy has an Academy Advisory group that provides information to staff on matters related to them, consultation about the budget and financial performance and opportunities to get involved in the annual equalities review.
Horizons Education Trust continues a good productive relationship with Cambridgeshire Local Authority and supports the local offer for SEND children and families. We strive to maintain quality standards and link to a wide range of external organisations for guidance and advice which includes support for the Local Offer. Riverside Meadows Academy makes admissions from neighbouring local Authorities when placements are available.
The Board of Trustees have authorised the development of the National Autistic Society standards for children with autism as a day school and the use of quality standards from Autism Education Trust and Spring Common Academy achieved reaccreditation.
Health training is provided by qualified nurses from NHS Cambridgeshire Community Services (CCS) and the team of special school nurses. We welcome children with medical conditions and disabilities who will be provided with friendly and dedicated staff who work in partnership with parents and health professionals. Staff are trained in moving and handling trainers accredited by Edge Training Ltd.
Communication and interaction are an important part of Education, Health and Care Plans (EHCP), and the academy promotes the use of Makaton (Makaton UK) as communication systems, and has regional trainers. We purchase these training programmes to enable staff to support the speech therapy aims of speech therapists. Pupils that require augmentative communication systems or support for eating and drinking will be provided with advice from speech therapists from NHS Cambridgeshire Community Services (CCS).
In terms of Social and Emotional and Mental Health (SEMH), the trust has gradually transitioned away from TEAM TEACH training from Team - Teach Ltd, to reduce risk of restraint in the academies, and has introduced Therapeutic Thinking, which is supported by Cambridgeshire Local Authority. Access to CAMH services through YOU United locally and social care and community support services (Cambridgeshire County Council) is embedded.
The Articles of Association of Horizons Education Trust determine that the objects are restricted to:
To advance for the public benefit education in the UK. Establish, maintaining, carrying on, managing academies offering a broad and balanced curriculum appropriate to the needs of students who require special educational provision.
To promote for the benefit of the inhabitants of the areas in which the Academies are situated the provision of facilities for recreation or other leisure time occupation of individuals who have need of such facilities by reason of their youth, age, infirmity or disablement, financial hardship or social and economic circumstances or for the public at large in the interests of social welfare and with the object of improving the condition of life of the said inhabitants.
c. Adhere to the Academies Handbook and terms and conditions of the commercial transfer agreement and
funding agreement renewed on 01.05.2021 as part of the legal transfer of Riverside Meadows Academy.
Horizons Education Trust:
Our mission: We make a difference to the lives of children, young people and their families. We enrich the lives and educational experience of learners with special educational needs, preparing them for their future contributions to a dynamic society. Within our trust we go beyond expectations.
Our Values:
Equality
Respect
Excellence
Trust
Aspiration and Ownership
Advocacy
Inclusivity
Trust supports the NOLAN principles for public service.
Build local, regional and national partnerships
Our Strategic Plan: (used to create objectives with a 3-year plan)
A Central Team with expertise and capacity for a growing Trust
3 -year financial Plan
Academies with a culture of belonging and community.
School improvement and quality assurance cycles for our academies
People & Culture Strategy and Recruitment Strategy to develop and retain exceptional staff
Build local, regional and national partnerships
The CEO reports to Trustees on educational standards to ensure there is appropriate challenge and support to academies. Capacity for school improvement improved, and staff absence has decreased year on year. However, quality assurance was maintained to ensure strong EHCP delivery and scrutiny of standards.
Spring Common Academy continue to have a satellite provision with Cambridge Regional College (CRC), and in May 2024 OFSTED found that 'pupils are the beating heart of the school'. They went onto note 'All receive high-quality support to meet their physical and social needs.' Riverside Meadows Academy had a successful opening at their Wisbech campus in September 2023.
The trust have continued to work with Morgan Sindall and the Local Authority towards the opening of special area school, Prestley Wood Academy. A Headteacher has been appointed in designate to support these efforts.
Opening of Wisbech Green, Barton Road Campus
Riverside Meadows Academy Wisbech successfully opened its doors to staff, pupils and parent/carers in September 2023
Metacognition Cross-Trust Initiative
HEdT received training from ‘Thinking Matters’ on the Science of learning to develop wider understanding of metacognition and how to support our pupils to become self – regulated learners
People & Culture Strategy
The creation of this People & Culture Strategy anticipates continued positive progress in both the reduction of staff absence and staff the promotion of staff acquisition and retention
RMA staff absence: 4.7%, 2022/23, decreasing to 2%, 2023/24
SCA staff absence: 11.1%, 2022/23, decreasing to 6.2%, 2023/24
Capacity Increase in Central Team
HEdT has increased the capacity and function of its Central Team through the addition of a Management Accountant, the role development of Executive PA to Operations Manager and Trust Administrator to Communications Executive
Senior Leader Recruitment
January 2024 saw the successful on board of new Headteacher R Greig at Spring Common Academy, who made significant contribution to the ungraded positive OFSTED the academy received in May, 2024
Premises & Estates
Riverside Meadows Academy St Neots is in receipt of a new, larger office space due to internal relocation and, general storage expansion to support the effectiveness of their administrative team
Community Initiatives
Trust academies continue to build positive relations within their local communities to the benefit of all.
Trust Strategy Day
HEdT’s Trust Strategy Day was extended to include the Central Team in 2024 alongside Senior Leaders, Trustees and the CEO, and will continue on an annual basis
Opening of Prestley Wood Academy
HEdT forged ahead in the construction and development of Prestley Wood Academy in anticipation of its opening in September 2024. The multi-million pound flagship building will be a huge asset the Cambridgeshire area in its capacity as special area school, and companion school to Spring Common Academy. Headteacher Designate C Place and Headteacher R Greig are working together to the benefit of all with a shared vision.
After making appropriate enquiries, the board of trustees has a reasonable expectation that the academy trust has adequate resources to continue in operational existence for the foreseeable future. For this reason, the board of trustees continues to adopt the going concern basis in preparing the accounts. Further details regarding the adoption of the going concern basis can be found in the statement of accounting policies.
Under Section172(1) (a) to (f) of Companies Act 2006 the Trustees consider the consequences of decisions in the longer - term environment, interests of employees, business interests of suppliers, impact on community and environment, reputational standards and fairness between members of the company.
Principal sources of funding and how expenditure has supported the key objectives
A budget for 1 September 2023 - 31 August 2024 was approved by Trustees in July 2023. The sources of funding included:
Carry forward recorded 31 August 2023 as £830,806
General Annual Grant Statement 2023-24 of £3,140,000
Restricted funds included Pupil premium, Catch up and Sports premium.
Cambridgeshire Local Authority top up funding not part of GAG statement for additional funded placements.
Note: Spring Common Academy inherited the Local Government pension scheme (LGPS) on academy conversion in December 2015. Trustees determined to separate pension schemes for monitoring purposes and audit which means Riverside Meadows Academy Local Government scheme (LGPS) is separated for the Trust.
Pressures on this initial budget build included:
Additional cost of pay awards where not covered by government funding
No increase in top up values for individual pupils for delivery of Education Health and Care plans
Additional costs for recruitment and HR advice
Unfunded set-up costs for new Riverside Meadows Academy campus (Wisbech Green) and Prestley Wood
The Trust completed the Financial Management and Governance Self - Assessment on 4 April 2016 followed up with a DfE audit in April 2016. The competitive tendering policy and Business Continuity Plan are still fit for purpose. Trust risk log was reviewed and updated at Board meetings during 2023-24. Trustees have read and understand the financial responsibilities in Academy Trust Handbook. All Trustees policies are updated on the Horizons Education Trust website.
The Trust is compliant with the review of the Teacher Pension Scheme in March 2024.
The Trust had cash at 1 September 2024 of £1,417,584 (2023 - £1,530,319).
Trustees approved a budget from 1 September 2023 to 31 August 2024 based upon the trends of expenditure and staffing structure approved in July 2023. Trustees reviewed expenditure and submitted Finance budget control reports to the Education & Skills Funding Agency. The Director of Finance who is a qualified Accountant completed monthly accounts for Trustees and financial reports.
Value for money statement:
Over the last year Trustees made due regard to regulations and considered best value for all purchases using an agreed scheme of delegation and best value principles.
In 2022 the Trustees agreed a reserves policy to maintain reserves of approximately £200,000 per school. It was agreed this reserve is required to provide a level of contingency funds against changes in pupil numbers and funding levels; delays in receiving funds for new pupils and any unforeseen but necessary expenditure. A Reserves Policy review is to be undertaken in 2024/25 to ensure that it is robust.
The trust brought forward £436,060 of unrestricted funds at the 1 September 2023 with most of these reserves from the conversion to an academy in January 2016.
Total reserves of the academy trust were £1,218k at 31 August 2024 (excluding fixed assets and the pension deficit). This includes the £704,989 restricted general funds. The carry forward of funds was allocated to Trust priorities to support Trust growth with a New School Reserve (£226k at 31 August 2024), Staff Training Reserve (£391k at 31st August 2024). This decision will be reviewed by Trustees as they appraise priorities within the Trust in 2024 and determine a new Reserves Policy.
Spring Common Academy and Riverside Academy do not have any investments because all funding is required to be available to the Board of Trustees and to be assigned to their strategic priorities. The investment income at 31 August 2024 of £9,960 was bank interest.
The trust acknowledges that a principal risk is the recruitment and retention of experienced staff to maintain the highest standards.
The trust is aware that no uplift in top up or funding for pupils has occurred since 2009. Passporting of DFE funding was not provided in full to special schools in Cambridgeshire. A review of SEN Funding is under review in the Local Authority, with a move to a band system anticipated for 2025-26.
The trust is actively preparing for growth. The new replacement SEMH school for Wisbech opened for 60 pupils in September 2023. Prestley Wood Academy, a new special school at Alconbury Weald is due to open in September 2024.
The trust is compliant with the recognised standards of fundraising set out in the Code of Fundraising Practice. Horizons Education Trust has not use professional fundraisers in 2023/24 and there have been no complaints received by the trust about fund raising activities carried out by the trust in the year.
The Trust does not consume over 40,000 KWH of energy and is not required to report under Companies (Director’s report) and Limited liability partnerships (Directors report) & Limited liabilities partnerships (Energy and carbon reporting) regulations 2018.The Trust does complete DEC certification and reviews energy consumption.
The Trustees are working with Interim CEO, Jane Nolan to develop the following:
Strategic Plan 2025-2028
Supported by Trust Strategy Day 2025
Trust Capacity Plan and the expansion of central functions
Supported by proposed organisational structure changes
Executive leader expansion
Full policy and governance review
Enable executive and senior leaders to build impactful local, regional and national partnerships
The Trustees aim to continue positive relationships with Cambridgeshire Local Authority and their SEND Commissioning to enable placement planning and sufficiency duty to continue to meet parental demand for special school placements in the local area.
A resolution proposing that Azets Audit Services be reappointed as auditor of the charitable company will be put to the members.
The trustees' report, incorporating a strategic report, was approved by order of the board of trustees, as the company directors, on
As trustees, we acknowledge we have overall responsibility for ensuring that Horizons Education 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.
As trustees, we have reviewed and taken account of the guidance in DfE's Governance Handbook and competency framework for governance.
The board of trustees has delegated the day-to-day responsibility to the Head of School, 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 Horizons Education 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.
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 six times during the year. Attendance during the year at meetings of the board of trustees was as follows:
The trust actively manage potential conflicts of interest by completing annual governor declaration forms and raising it at the start of every governors meeting. The requirements set out by the ESFA on business and other interests are followed to ensure transparency.
As accounting officer, the CEO 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. Procurement followed the process to consolidate expenditure for energy, cleaning and school meals and this was cost effective. The delivery of services from the trust central team also provided cost savings for schools with delivery of school improvement advice, training, website support and media and support for Estates management and HR.
The accounting officer considers how the academy trust’s use of its resources has provided good value for money during each academic year, and reports to the board of trustees where value for money can be improved, including the use of benchmarking data where available. The accounting officer for the academy trust has delivered improved value for money during the year by:
Review of staffing structure and recruitment of staff to meet pupil demand
Detailed planning was undertaken by the CEO and Central Team with Head Teachers costed for affordability by the Finance Manager as the Chief Financial Officer and CEO. Our pupil outcome information indicated no variation in pupil’s performance or detriment making use of specialist teaching assistants directly into the classroom to provide expertise.
Review of support staff roles in relation to administration and teaching school:
Over the last year again the trust has reviewed the scope of administrative duties and expanded the capacity for a central team. The wider system leadership role of the Trust is still a focus but care and attention has been provided to secure systems and processes are consistent to be ready to support the wider system locally.
Review of cover supply costs and policies:
The impact of the rolling year for tracking sickness after staff consultation continues to have impact positively on staff overall absence. The Trust offers an employee assistance scheme.
Benchmarking and Resource management:
The school makes effective use of the Resource management self – assessment tool and benchmarking costs to gain value for money compared to other schools and special schools.
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 Horizons Education Trust for the period 1 September 2023 to 31 August 2024 and up to the date of approval of the annual report and accounts.
The board of trustees has reviewed the key risks to which the academy trust is exposed together with the operating, financial and compliance controls that have been implemented to mitigate those risks. The board of trustees is of the view that there is a formal ongoing process for identifying, evaluating and managing the academy trust's significant risks that has been in place for the period 1 September 2023 to 31 August 2024 and up to the date of approval of the annual report and accounts. This process is regularly reviewed by the board of trustees.
The academy trust's system of internal financial control is based on a framework of regular management information and administrative procedures including the segregation of duties and a system of delegation and accountability. In particular, it includes:
comprehensive budgeting and monitoring systems with an annual budget and periodic financial reports which are reviewed and agreed by the board of trustees;
regular reviews by the audit, finance, premises, and health & safety committee of reports which indicate financial performance against the forecasts and of major purchase plans, capital works and expenditure programmes;
setting targets to measure financial and other performance;
clearly defined purchasing (asset purchase or capital investment) guidelines;
identification and management of risks and whether these can be mitigated.
The Board of Trustees has considered the need for a specific internal audit function and employed Price Bailey as an internal auditor and internal scrutiny tests schedule completed and reported to the Board.
The internal auditor's role includes giving advice on financial matters and performing a range of checks on the academy trust's financial systems. In particular the checks carried out in the current period included:
reviewing trustees' expense claims
reviewing trustees' business interests
reviewing ESFA income and agreeing back to source documentation
sample checking miscellaneous income
sample checking expenditure including salaries
reviewing bank reconciliations and balances
reviewing petty cash
On a twice - yearly basis, the internal auditor reports to the board of trustees through the Finance, People and premises committee on the operation of the systems of control and on the discharge of the financial responsibilities of the board of trustees. The internal audits were concluded and reports provided to Trustees and remedial and minor actions followed.
The Trustees have commissioned an external review of governance that will add to the existing control framework.
The Accounting Officer has responsibility for reviewing the effectiveness of the system of internal control. During the year in question the review has been informed by:
the work of the internal auditor;
the work of the external auditor;
the financial management and governance self-assessment process;
the work of the executive managers within the academy trust who have responsibility for the development and maintenance of the internal control framework.
The accounting officer has been advised of the implications of the result of their review of the system of internal control by the audit, finance, premises, and health & safety 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 11 December 2024 and signed on its behalf by:
As accounting officer of Horizons Education Trust, I have considered my responsibility to notify the academy trust board of trustees and the Education and Skills Funding Agency (ESFA) of material irregularity, impropriety and non-compliance with terms and conditions of all funding, including for estates safety and management, under the funding agreement in place between the academy trust and the Secretary of State for Education. As part of my consideration I have had due regard to the requirements of the Academy Trust Handbook 2023, including responsibilities for estates safety and management.
I confirm that I and the academy trust's board of trustees are able to identify any material irregular or improper use of funds by the academy trust, or material non-compliance with the terms and conditions of funding under the academy trust's funding agreement and the Academy Trust Handbook 2023.
I confirm that no instances of material irregularity, impropriety or funding non-compliance have been discovered to date. If any instances are identified after the date of this statement, these will be notified to the board of trustees and ESFA.
The trustees (who are also the directors of Horizons Education 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:
select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP 2019 and the Academies Accounts Direction 2023 to 2024;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts; and
prepare the accounts on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for ensuring that in its conduct and operation the charitable company applies financial and other controls, which conform with the requirements both of propriety and of good financial management. They are also responsible for ensuring that grants received from ESFA/DfE have been applied for the purposes intended.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of accounts may differ from legislation in other jurisdictions.
Approved by order of the members of the board of trustees on 11 December 2024 and signed on its behalf by:
Opinion
We have audited the accounts of Horizons Education 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.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 'Auditor's responsibilities for the audit of the accounts' section of our report. We are independent of the academy trust in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the academy trust’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the accounts and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the accounts does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the accounts themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
the information given in the trustees' report including the incorporated strategic report for the financial year for which the accounts are prepared is consistent with the accounts; and
the trustees' report including the incorporated strategic report has been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the academy trust and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report, including the incorporated strategic report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the accounts are not in agreement with the accounting records and returns; or
certain disclosures of trustees' remuneration specified by law are not made; or
As explained more fully in the statement of trustees' responsibilities, the trustees are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error. In preparing the accounts, the trustees are responsible for assessing the academy trust’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company, or have no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these accounts.
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:
Enquiry of senior leadership, Governors/Trustees and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations including compliance with the Academies Accounts Direction 2023 to 2024 issued by the Education and Skills Funding Agency;
Performing audit work over the recognition of grant income and the allocation of expenditure to funds;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
In accordance with the terms of our engagement letter dated 2 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 Horizons Education 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 Horizons Education Trust and ESFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to the Horizons Education 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 Horizons Education Trust and ESFA, for our work, for this report, or for the conclusion we have formed.
The accounting officer is responsible, under the requirements of Horizons Education Trust’s funding agreement with the Secretary of State for Education dated 18 December 2015 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.
We conducted our engagement in accordance with the Framework and Guide for External Auditors and Reporting Accountant of Academy Trusts issued by ESFA. We performed a limited assurance engagement as defined in our engagement letter.
The objective of a limited assurance engagement is to perform such procedures as to obtain information and explanations in order to provide us with sufficient appropriate evidence to express a negative conclusion on regularity.
A limited assurance engagement is more limited in scope than a reasonable assurance engagement and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in a reasonable assurance engagement. Accordingly, we do not express a positive opinion.
Our engagement includes examination, on a test basis, of evidence relevant to the regularity and propriety of the academy trust's income and expenditure.
The work undertaken to draw to our conclusion includes:
a review of the activities of the academy, by reference to sources of income and other information
available to us;
sample testing of expenditure, including payroll;
a review of minutes of Trustees’ meetings.
In the course of our work, nothing has come to our attention which suggests that in all material respects the expenditure disbursed and income received during the period 1 September 2023 to 31 August 2024 has not been applied to purposes intended by Parliament and the financial transactions do not conform to the authorities which govern them.
The accounts on pages 20 to 46 were approved by the trustees and authorised for issue on 11 December 2024 and are signed on their behalf by:
Horizons Education Trust is a charitable company. The address of its principal place of business is given on page 1 and the nature of its operations are set out in the trustees' report.
A summary of the principal accounting policies adopted (which have been applied consistently, except where noted), judgements and key sources of estimation uncertainty, is set out below.
The accounts of the academy trust, which is a public benefit entity under FRS 102, have been prepared under the historical cost convention in accordance with the Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102), the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)), the Academies Accounts Direction 2023 to 2024 issued by ESFA, the Charities Act 2011 and the Companies Act 2006.
The accounts are prepared in sterling, which is the functional currency of the academy trust. Monetary amounts in these financial statements are rounded to the nearest £.
The trustees assess whether the use of going concern is appropriate, ie whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charitable company to continue as a going concern. The trustees have made this assessment in respect of a period of at least one year from the date of authorisation for issue of the accounts and have concluded that the academy trust has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the academy trust’s ability to continue as a going concern. Thus they continue to adopt the going concern basis of accounting in preparing the accounts.
All incoming resources are recognised when the academy trust has entitlement to the funds, the receipt is probable and the amount can be measured reliably.
Grants are included in the statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the balance sheet. Where income is received in advance of meeting any performance-related conditions there is not unconditional entitlement to the income and its recognition is deferred and included in creditors as deferred income until the performance-related conditions are met. Where entitlement occurs before income is received, the income is accrued.
General Annual Grant is recognised in full in the statement of financial activities in the period for which it is receivable, and any abatement in respect of the period is deducted from income and recognised as a liability.
Capital grants are recognised in full when there is an unconditional entitlement to the grant. Unspent amounts of capital grants are reflected in the balance sheet in the restricted fixed asset fund. Capital grants are recognised when there is entitlement and are not deferred over the life of the asset on which they are expended.
Donations are recognised on a receivable basis (where there are no performance-related conditions) where the receipt is probable and the amount can be reliably measured.
Other income, including the hire of facilities, is recognised in the period it is receivable and to the extent the academy trust has provided the goods or services.
Goods donated for resale are included at fair value, being the expected proceeds from sale less the expected costs of sale. If it is practical to assess the fair value at receipt, it is recognised in stock and ‘Income from other trading activities’. Upon sale, the value of the stock is charged against ‘Income from other trading activities’ and the proceeds are recognised as ‘Income from other trading activities’. Where it is impractical to fair value the items due to the volume of low value items they are not recognised in the accounts until they are sold. This income is recognised within ‘Income from other trading activities’.
Donated fixed assets are measured at fair value unless it is impractical to measure this reliably, in which case the cost of the item to the donor is used. The gain is recognised as income from donations and a corresponding amount is included in the appropriate fixed asset category and depreciated over the useful economic life in accordance with the academy trust‘s accounting policies.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
All resources expended are inclusive of irrecoverable VAT.
This includes all expenditure incurred by the academy trust to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
These are costs incurred on the academy trust's educational operations, including support costs and costs relating to the governance of the academy trust apportioned to charitable activities.
These include the costs attributable to the academy trust's compliance with constitutional and statutory requirements, including audit, strategic management, trustees' meetings and reimbursed expenses.
Assets costing £3,000 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 that Spring Common Academy operate from were valued by the trustees on conversion and brought into the accounts at that valuation. A valuation that was commissioned by the ESFA as at 31 August 2020 was received and the land and buildings have been impaired down to that valuation.
Leasehold land and buildings that Riverside Meadows Academy (St Neots) operate from are included in the accounts at an ESFA valuation from the date of joining the Trust.
Leasehold land and buildings that Riverside Meadows Academy (Wisbech) operate from are included as an addition to long-term leasehold property at a valuation provided by Trustees.
The building in which Prestley Woods Academy will operate was donated to the Trust in August 2024. This was built using a free school bid. The building is included as an addition to long-term leasehold property at construction cost.
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.
Depreciation is provided on all tangible fixed assets other than freehold land, at rates calculated to write off the cost of each asset on a straight-line/reducing balance basis over its expected useful life, as follows:
A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the statement of financial activities.
Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the academy trust anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods of services it must provide.
Rentals payable under operating leases are charged against income on a straight line basis over the period of the lease.
The land and buildings from which the academy operate are leased from the Local Authority at £nil rent. A commercial value of the lease has not been included in these accounts as expenditure or donated income.
The academy trust only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the academy trust and their measurement basis are as follows.
Trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments.
Cash at bank is classified as a basic financial instrument and is measured at face value.
Trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition.
Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument.
The academy trust is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the academy trust is potentially exempt from taxation in respect of income or capital gains received within categories covered by chapter 3 part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Retirement benefits to employees of the academy trust are provided by the Teachers' Pension Scheme ('TPS') and the Local Government Pension Scheme ('LGPS'). These are defined benefit schemes and the assets are held separately from those of the academy trust.
The TPS is an unfunded scheme and contributions are calculated to spread the cost of pensions over employees' working lives with the academy trust in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary based on quadrennial valuations using a prospective unit credit method. The TPS is an unfunded multi-employer scheme with no underlying assets to assign between employers. Consequently, the TPS is treated as a defined contribution scheme for accounting purposes and the contributions are recognised in the period to which they relate.
The LGPS is a funded multi-employer scheme and the assets are held separately from those of the academy trust in separate trustee administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit credit method and discounted at a rate equivalent to the current rate of return on a high-quality corporate bond of equivalent term and currency to the liabilities. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The amounts charged to net income or expenditure are the current service costs and the costs of scheme introductions, benefit changes, settlements and curtailments. They are included as part of staff costs as incurred. Net interest on the net defined benefit liability/asset is also recognised in the statement of financial activities and comprises the interest cost on the defined benefit obligation and interest income on the scheme assets, calculated by multiplying the fair value of the scheme assets at the beginning of the period by the rate used to discount the benefit obligations. The difference between the interest income on the scheme assets and the actual return on the scheme assets is recognised in other recognised gains and losses. Actuarial gains and losses are recognised immediately in other recognised gains and losses.
Unrestricted income funds represent those resources which may be used towards meeting any of the charitable objects of the academy trust at the discretion of the trustees.
Restricted fixed asset funds are resources which are to be applied to specific capital purposes imposed by 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.
Agency arrangements
The academy trust acts as an agent in distributing 16-19 bursary funds from the ESFA. Payments are received from the ESFA and subsequent disbursements to students are excluded from the statement of financial activities as the academy trust does not have control over the charitable application of the funds. The academy trust can use an allocation towards it own administration costs but has not done so in the year. The funds received and paid, and any balances held are disclosed in note 28.
Accounting estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The academy trust makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Local Government Pension Scheme:
The present value of the Local Government Pension Scheme defined benefit liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost or income for pensions include the discount rate. Any changes in these assumptions, which are disclosed in note 19, will impact 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 2019 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.
Valuation of property:
Leasehold land and buildings that Spring Common Academy operate from were valued by the trustees on conversion and brought into the accounts at that valuation. A valuation that was commissioned by the ESFA as at 31 August 2020 was received and the land and buildings have been impaired down to that valuation.
Leasehold land and buildings that Riverside Meadows Academy (St Neots) operate from are included in the accounts at an ESFA valuation from the date of joining the Trust.
Leasehold land and buildings that Riverside Meadows Academy (Wisbech) operate from are included as an addition to long-term leasehold property at a valuation provided by Trustees.
The building in which Prestley Woods Academy will operate was donated to the Trust in August 2024. This was built using a free school bid. The building is included as an addition to long-term leasehold property at construction cost.
The academy trust has provided the following central services to its academies during the year:
property management;
HR;
payroll;
finance systems;
governance;
audit.
The academy trust paid 1 severance payment in the year, disclosed in the following bands:
Of the employees whose emoluments exceeded £60,000, 9 (2023 - 6) have retirement benefits accruing under defined benefit pension schemes. During the year pension contributions for these staff members amounted to £170,275 (2023 - £104,977).
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 £497,340 (2023 - £815,013). The categorisation of who is in the senior leadership team has changed in the year.
One or more of the trustees has been paid remuneration or has received other benefits from an employment with the academy trust. The CEO and other staff trustees only receive remuneration in respect of services they provide undertaking the roles of CEO and staff members under their contracts of employment, and not in respect of their services as trustees.
The value of trustees' remuneration for the year was as follows:
K Taylor (Head of School of special school group 7 and trustee) - Left 8 July 2024
Remuneration £100,001 - £110,000 (2023 - £110,001 - £120,000)
Employer’s pension contributions £25,001 - £30,000 (2023 - £25,001 - £30,000)
In accordance with normal commercial practice, the academy trust has purchased insurance to protect trustees and officers from claims arising from negligent acts, errors or omissions occurring whilst on academy trust business. The insurance provides cover up to £25,000,000 on any one claim and the cost for the year ended 31 August 2024 was included in the total insurance cost.
Leasehold land and buildings that Spring Common Academy operate from have been included at an ESFA valuation as at 31 August 2020 of £3,700,000. Additions to leasehold buildings since that date include a donation of capital works including new classrooms from the Local Authority in the year ended 31 August 2021 . This was brought in at £3,000,000 based on a management valuation of work done. Other additions have been brought in at cost.
Leasehold land and buildings that Riverside Meadows Academy (St Neots) operate from are included in the accounts at an ESFA valuation of £2,075,000 from the date of joining the Trust.
In September 2023, the leasehold land and buildings in Wisbech that Riverside Meadows Academy operate from were donated to the Trust. These have been included at an estimated valuation provided by the Trustees of £14,240,000.
The building in which Prestley Woods Academy will operate was donated to the Trust in August 2024. This was built using a free school bid. The building is included as an addition to long-term leasehold property at construction cost of £35,600,000.
Deferred income relates to a grant received of £7,011 (2023 - £6,590) for Universal Infant Free School Meals for the first term of the next financial year, funding for teachers' pay and pension grants of £116,837 (2023 - £nil) for the next financial year, funding for pupils for the first term of the financial year of £10,696 (2023 - £nil) and funding of £nil (2023 - £153,777) received in relation to Riverside Meadows - Wisbech site for equipment funding for the first term of the next financial year.
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 Cambridgeshire County Council. Both are multi-employer defined benefit schemes.
The pension costs are assessed in accordance with the advice of independent qualified actuaries. The latest actuarial valuation of the TPS related to the period ended 31 March 2016, and that of the LGPS related to the period ended 31 March 2019.
Contributions amounting to £nil were payable to the schemes at 31 August 2024 (2023 - £99,161) and are included within creditors.
The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pension Scheme Regulations 2014. Membership is automatic for teachers in academy trusts. All teachers have the option to opt out of the TPS following enrolment.
The TPS is an unfunded scheme to which both the member and employer makes contributions, as a percentage of salary. These contributions are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.
The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to ensure scheme costs are recognised and managed appropriately and the review specifies the level of future contributions.
Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2020. The valuation report was published by the Department for Education on 27 October 2023, with the SCAPE rate, set by HMT, applying a notional investment return based on 1.7% above the rate of CPI. The key elements of the valuation outcome are:
Employer contribution rates set at 28.68% of pensionable pay (including a 0.08% administration levy). This is an increase of 5% in employer contributions and the cost control result is such that no change in member benefits is needed.
Total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service to the effective date of £262,000 million and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £222,200 million, giving a notional past service deficit of £39,800 million.
The result of this valuation will be implemented from 1 April 2024.The next valuation result is due to be implemented from 1 April 2028.
The employer's pension costs paid to the TPS in the period amounted to £574,482 (2023 - £434,741).
A copy of the valuation report and supporting documentation is on the Teachers’ Pensions website.
Under the definitions set out in FRS 102, the TPS is an unfunded multi-employer pension scheme. The academy trust is unable to identify its share of the underlying assets and liabilities of the plan. Accordingly, the academy trust has taken advantage of the exemption in FRS 102 and has has accounted for its contributions to the scheme as if it were a defined contribution scheme. The academy trust has set out above the information available on the scheme.
The LGPS is a funded defined benefit pension scheme, with the assets held in separate trustee-administered funds. The total contributions are as noted below. The agreed contribution rates for future years are 23% for employers and 5.5% - 10.5% for employees.
The estimated value of employer contributions for the forthcoming year is £506,000.
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.
Scheme liabilities would have been affected by changes in assumptions as follows:
The net gain recognised on scheme assets has been restricted because the full pension surplus is not expected to be recovered through refunds or reduced contributions in the future.
The actuarial valuation prepared under FRS102 in respect of the Local Government Pension Scheme indicated that Riverside Meadows Academy's' share of the scheme was £156,000 in surplus at the year end. The actuaries have prepared an asset ceiling report, the results of which show that no assets should be recognised for Riverside Meadows Academy.
The specific purposes for which the funds are to be applied are as follows:
General Annual Grant (GAG):
General Annual Grant must be used for the normal running costs of the academy. 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.
The restricted grant income in the year all relates to the provision of education for the students attending the academy.
The pension provision equates to the deficit on the Local Government Pension Scheme FRS102 valuation.
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.
Restricted fixed assets funds represent capital funding received from the ESFA and other sources. In accordance with the accounting policies set out in note 1, assets are capitalised where applicable, and depreciation is charged to this fund over the assets' useful economic life. Where costs are not capital in nature they are charged directly to this fund as an expense.
Designated funds have been set aside by the trustees for use in a variety of different areas.
There is a contingent liability in existence at the end of the year in relation to an ongoing dispute with an employee. Trustees are unable to determine at the date of signing these accounts whether a provision is required.
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.
No related party transactions took place during this period.
Currently none of the trustees have children who are pupils at the academy, therefore there are no transactions between those trustees and the academy in respect of their children's education.
In August 2024 the Trust started to operate a new school, Prestley Woods Academy. The building in which this school operates was commissioned and built by the DfE with the Local Authority during the year. The school opens in September 2024.
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.
The academy trust distributes 16-19 bursary funds to students as an agent for ESFA. In the accounting period the academy trust received £9,692 and disbursed £6,328 from the fund. An amount of £10,364 is included in other creditors relating to undistributed funds that are repayable to the ESFA.