Company registration number 11099763 (England and Wales)
SAIL ACADEMY TRUST
(A COMPANY LIMITED BY GUARANTEE)
ANNUAL REPORT AND ACCOUNTS
FOR THE YEAR ENDED
31 AUGUST 2024
31 August 2024
SAIL ACADEMY TRUST
CONTENTS
Page
Reference and administrative details
1 - 2
Trustees' report
3 - 15
Governance statement
16 - 18
Statement on regularity, propriety and compliance
19
Statement of trustees' responsibilities
20
Independent auditor's report on the accounts
21 - 24
Independent reporting accountant's report on regularity
25 - 26
Statement of financial activities including income and expenditure account
27 - 28
Balance sheet
29
Statement of cash flows
30
Notes to the accounts including accounting policies
31 - 50
SAIL ACADEMY TRUST
REFERENCE AND ADMINISTRATIVE DETAILS
- 1 -
Members
R Collinson
P Fillis
D Hillon (appointed 1 September 2023)
P Salt
Trustees
C A McBride (Chair of Trustees)
K Arands (Appointed 1 September 2023)
P Cadden
S M King
K O'Brien
E G Sullivan
Senior management team
- Interim Chief Executive Officer
N Ward
- Head of New Park Primary School
K A Poulson (appointed 1 October 2023)
- Head of Roscoe Primary School
P Jones (appointed 1 October 2023)
- Chief Finance Officer
A Whittle
- Accounting Officer
A Whittle (appointed 1 September 2023)
- Director of Personal Development, Behaviour and Welfare
R Povey
Company registration number
11099763 (England and Wales)
Principal and registered office
100 Boaler Street
Liverpool
Merseyside
L6 9EU
Academies operated
Location
Principal
New Park Primary School
100 Boaler Street, Liverpool, L6 9EU
K A Poulson
Roscoe Primary School
Alison Road, Liverpool, L13 9AD
P Jones
Independent auditor
Mitchell Charlesworth (Audit) Limited
3rd Floor
5 Temple Square
Temple Street
Liverpool
Merseyside
L2 5RH
Bankers
Lloyds Bank plc
Liverpool Law Courts
2 - 12 Lord Street
Derby Square
Liverpool
Merseyside
L2 1TS
SAIL ACADEMY TRUST
REFERENCE AND ADMINISTRATIVE DETAILS
- 2 -
Solicitors
Hill Dickinson LLP
No.1 St. Pauls Square
Liverpool
Merseyside
L3 9SJ
SAIL ACADEMY TRUST
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 3 -

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

The academy trust operates two primary academies for pupils aged 3-11 years serving a catchment area in Liverpool, Merseyside. New Park Primary has a pupil capacity of 481 and had a roll of 480 in the school census in Summer Term 2024. Roscoe Primary has a pupil capacity of 281 and had a roll of 233 in the school census in Summer Term 2024.

Structure, governance and management
Constitution

SAIL Academy Trust was incorporated on 6 December 2017. 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 operates as SAIL Academy Trust, which includes New Park Primary School and Roscoe Primary School. On 1 March 2018, New Park Primary School and Roscoe Primary School converted to academy status and all the operating activities, assets and liabilities were transferred to the charitable company.

The trustees of SAIL Academy 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

The academy trust has opted into the Risk Protection Arrangement (RPA) provided by the Education and Skills Funding Agency to protect Trustees, Governors and officers from claims arising from negligent acts, errors or omissions occurring whilst on academy business. The limit of this indemnity is £10,000,000. It is not possible to quantify the trustees and officers indemnity element from the overall cost of the RPA scheme.

Method of recruitment and appointment or election of trustees

The academy trust must not appoint any new or replacement trustees or members until it has first informed them, and they have agreed that their names will be shared with the Secretary of State to enable him to assess their suitability.

 

The academy trust will have at least three members. The members have the right to appoint additional members. The trust board will nominate or appoint trustees.

Policies and procedures adopted for the induction and training of trustees

When appointing new trustees to SAIL Academy Trust, the members will give consideration to the skills and experience mix of existing trustees in order to ensure that the board has the necessary skills to contribute fully to the trust's development.

 

All trustees will complete a Skills Audit and Training Needs Analysis. All new trustees will submit a comprehensive curriculum vitae and skills audit, which are used as a key part of the appointment process and to determine future training needs.

 

There is a trustee induction programme tailored to the individual which includes briefings by senior staff, tours of the schools to meet staff and children, as well as being provided with the necessary papers for the fulfilment of the role.

 

All members and trustees have signed relevant appointment letters and their roles and responsibilities are set out in the role descriptors for trustees and the scheme of delegation.

SAIL ACADEMY TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 4 -
Organisational structure

The scheme of delegation is reviewed and approved annually by both members and trustees at the AGM. This scheme of delegation sets out the structure of what decisions are reserved for the board of trustees, and those that are delegated to management, the role of the chief executive and/or principal, senior management team and other relevant individuals.

 

The trustees must meet a minimum of three times per year. They have established an overall framework for the governance of the Trust and determined membership, terms of reference which will be reviewed whenever deemed necessary or annually as a minimum.

 

The responsibilities for the trustees:

SAIL ACADEMY TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 5 -

The following decisions are reserved for the Trustees:

Organisational Structure - Schools' level

 

Each school within the Trust, has a leadership structure, which consists of a local Governing Body of elected and appointed Governors and a Senior Leadership Group. The aim of the leadership structure is to devolve responsibility and encourage involvement in decision making at all levels. The Senior Leadership Team within each school, consists of a Headteacher, Assistant Headteacher and Senior Teachers. The exact numbers at each school varies with the specific needs of that school. The Leadership Group controls the school at an executive level, implementing the policies laid down by the Trustees and Governors and reporting back to them. The Headteacher, Chief Finance Officer and Trustees are responsible for the authorisation of spending within agreed budgets. Departmental spending control is devolved to Budget Holders. Trustees are responsible for ensuring that high levels of teaching are upheld and that standards of achievement are monitored and evaluated.

Arrangements for setting pay and remuneration of key management personnel

Trustees review performance and remuneration. Performance targets and salaries for key trust personnel are agreed annually. Remuneration for key management personnel is reviewed as roles change. These arrangements are in place in both schools.

 

The Trustees consider the Board of Trustees and the CEO and the Senior Leadership Team as comprising the key management personnel of the MAT in charge of directing and controlling the charity and running and operating the charity on a day to day basis. All Trustees give their time freely and no Trustee remuneration was paid in the year for their role as trustees. Details of related party transactions are disclosed in note 22 to the accounts.

 

Trustees are required to disclose all relevant interests on an annual basis and as a standing agenda item at all board meetings, then in accordance with the Trust's policy withdraw from decisions where a conflict of interest arises.

 

Trade Union Facility time

The Trust had no members of staff who were relevant trade union officials during the period. Trade unions are however fully recognised, and the Trust paid £2,972 towards pooled funds for trade union facility time to the Local Authority “Central Shared Pot”.

Related parties and other connected charities and organisations

There are no significant relationships with other organisations.

SAIL ACADEMY TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 6 -
Objectives and activities
Objects and aims

 

The principal objective of the charitable company is the operation of New Park Primary School and Roscoe Primary School, to provide education for pupils between the ages of 3-11 years. SAIL stands for Schools of Aspirational and Inclusive Learning. SAIL Academy Trust's aims are:

 

 

Core values

 

SAIL Academy Trust is underpinned by the core values of Aspirational and Inclusive Learning; this is evident in 10 underlying principles of our Trust.

 

 

 

 

 

 

 

 

 

 

SAIL ACADEMY TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 7 -
Objectives, strategies and activities

Here at SAIL Academy Trust, every member of staff is fully dedicated to ensuring that every single child makes the most progress that they can. Across the school, progress meetings are held on a termly cycle. The Leadership team along with the Pastoral Team and Class Teachers meet and look at every single child on an individual basis. We discuss their progress and set challenging targets. We identify and facilitate further support that children may need to reach their targets. This support is sometimes of an academic nature and may include interventions, additional support, homework club etc. Other times the support is of a pastoral nature and may include support from our wide-ranging pastoral team - Behaviour support, Mentoring, Psychotherapist etc. We constantly strive to ensure that any barriers to learning and progress are removed. Every individual is very important to us and our mission is to ensure that they are all able to make maximum progress. We are passionate about this.

 

In the year Trustees have continued to monitor the work and progress of the school by:

 

 

        - AII curriculum areas

        - Assessment

        - Teaching and Learning

        - Pastoral Care

        - Spiritual, Moral, Social and Cultural

        - English as an Additional Language

        - Special Educational Needs

        - Behaviour

        - Extra-Curricular

 

 

        - Health and Safety

     - Safeguarding

        - Curriculum

        - Finance

        - Staffing

        - Teaching and Learning

 

Trustees also reviewed both the internal and external audit findings. The strategic vision for the Trust was reviewed and updated alongside the scheme of delegation.

Capital works and grants

 

During the year the trust received £15,756 of capital grant funding which £9,835 was spent on an EYFS shelter and messy play area at Roscoe the remaining spent on capital maintenance works.

The Trust also installed a new CCTV system in each school totalling £25,068 from the capital funds deferred in the previous year.

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. The Academy Trust aims to advance for the public benefit, education in the Liverpool area by offering a broad curriculum within a fully inclusive environment.

SAIL ACADEMY TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 8 -
Strategic report
Achievements and performance
SAIL ACADEMY TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 9 -

New Park Primary KS2 Attainment 2024

Comparisons with Local & National data & Trends over time

Maths

Achieving the Expected Standard

Achieving the Higher Standard

Reading

Achieving the Expected Standard

Achieving the Higher Standard

Writing

Achieving the Expected Standard

Achieving Greater Depth

Grammar, Punctuation and Spelling (GPS)

Achieving the Expected Standard

Achieving the Higher Standard

Reading, Writing and Maths

Achieving the Expected Standard

Achieving the Higher Standard

SAIL ACADEMY TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 10 -
SAIL ACADEMY TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 11 -

Writing

Achieving the Expected Standard

 

Achieving Greater Depth

Grammar, Punctuation and Spelling (GPS)

Achieving the Expected Standard

Exceeding the Expected Standard

Reading, Writing and Maths

Achieving the Expected Standard

Exceeding the Expected Standard

Assessments were carried out at the end of the Summer term 2024 across all year groups and the areas that we are focusing on across both schools are:

Assessments are being used to form the basis of our curriculum. The assessments which have been undertaken by teachers have been sharply focused on National Curriculum objectives and our baseline assessment findings are being used to improve the responsiveness of teaching and to ensure that all gaps are addressed.

OFSTED

At the last Ofsted in 2015, New Park Primary was graded Outstanding. Roscoe Primary School was last seen by Ofsted in 2023 and their grading was Requires Improvement.

SAIL ACADEMY TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 12 -

Key performance indicators

The main financial performance indicator is the level of reserves held against the balance sheet date. In particular the management of spending against General Annual Grant (GAG). It is the Trust’s management policy that in general terms the income received in any one year is spent for the benefit of those children in the schools that year. As funding is based on pupil numbers this is also a key performance indicator. New Park Primary is currently at 97% capacity and Roscoe Primary is at 81% capacity.

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. 

During the Summer Term 2023, having updated the three-year forecasts, and anticipating further pay rises to all staff, with no additional funding, discussions began about the staffing structure and the Trust’s sustainability. Discussions began with the ESFA as to any financial support being available and the measures which we would have to undertake, including a staffing restructure, to secure the future of the Trust.  The ESFA agreed to financial support, via advance funding, to cover the costs of restructuring. The restructure took place in the Autumn 2023 term with the Trust commencing repayment to the ESFA in December 2023, funding to be repaid within 18 months.

As part of the focus of the viability of the Trust, and discussions with the ESFA, the Board of Trustees concluded that, given the prevailing educational climate and the move towards bigger trusts, in its existing structure the Trust was not viable and could not take full advantage of funding opportunities only available to larger trusts. The trust board therefore agreed to seek other trusts with which to join. Having shortlisted three trusts, the Chair of Trust invited the Chairs and CEOs of prospective trusts to give presentations to the Trust Board and senior management. The outcome of this was an agreement to make a formal approach to Northern Schools Trust with a view to joining it.

The Board of Northern Schools Trust accepted our proposal and having undergone a period of due diligence, and the proposal having been accepted by the Department of Education, SAIL Academy Trust joined Northern Schools Trust on 1 October 2024.  On this basis these financial statements are not prepared under the going concern basis of accounting as SAIL Academy Trust will cease to exist and therefore will no longer be a going concern. 

Financial review

Most of the Trust income is obtained from the DFE via the ESFA in the form of recurrent grants, the use of which is restricted for a particular purpose. These grants received from the DfE during the period 1 September 2023 to 31 August 2024 and the associated expenditure are shown in the Restricted Funds in the Statement of the Financial Activities on page 27.

During the period ending 31 August 2024 total expenditure of £5,801k (2023: £5,603k) was covered by a total income of £5,203k (2023: £4,903k). Net expenditure for the year amounted to £598k (2023: £700k), including a deficit of £551k (2023: £561k) on restricted fixed asset funds in the year.

The in-year deficit was due to a number of factors – supply costs amounted to £303k due to maternity leave, long term sickness and the necessity for additional 1:1 END staff. Additional professional costs arising from the audit for the year ended 31 August 2023 and legal fees in connection with the Trust defending itself against employee claims.  Increases in non-staffing costs due to higher-than-expected inflation costs, the energy crisis, and also staff pay awards all contributed to the deficit while funding remained fixed. 

 

Net Assets on the balance sheet at 31 August 2024 were £8,039k (2023: £8,658k) after accounting for the local government pension scheme deficits of £1,700k (2023: £1,810k). The vast majority of movement in the pension scheme liabilities is attributable to Actuarial assumptions/losses (rising interest rates to control inflation and the changes in the discount rate – see Note 19) and this has resulted in a debit of £110k (2023: credit £688k). Future cashflows will be affected as deficit contributions will increase but these have been accounted for in the budgets/forecasts. Net cash outflows from operating activities was £162k (2023: £19k inflow) and a cash balance of £108k was held at 31 August 2024 (2023: £157k). Net book value of restricted fixed assets at 31 August 2024 amounted to £10,171 (2023:10,728k) Unrestricted funds amounted to £NIL (2023: £NIL).

SAIL ACADEMY TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 13 -

Financial and Risk management objectives and policies

The Trust’s Financial Handbook lays out the framework for financial management, including the financial responsibilities of the Trustees, CEO, Head teacher, Academy Trust Chief Finance Officer, Finance Officer, budget holders and other staff as well as delegated responsibility for spending. Policies adopted include the Financial Procedures Manual, Procurement and Tendering Policy, Remuneration Policies and Redundancy Policy. All financial policies are reviewed in line with the MAT structure to ensure consistency with each school in the MAT.

A risk register is in place and is reviewed annually by the Board of Trustees. The risk register identifies the key risks, the likelihood of those risks occurring, their potential impact on the Academy and the actions being taken to reduce and mitigate the risks.

The nature of the Academy Trust is that the financial instruments that are dealt with are largely bank balances, cash and trade creditors with limited trade (and other) debtors. The Trustees consider its exposure to financial instruments to be minimal and such information is not material to an assessment of the Trust’s assets, liabilities and financial position or results.

The Trustees recognise that the defined benefit scheme deficit represents a significant potential liability. However as the Trustees consider the Academy Trust is able to meet its known annual contributions for the foreseeable future, the risk is minimised.

Reserves policy

The Trustees will review the reserve levels of the MAT annually. This review will encompass the nature of income and expenditure streams, the need to match income with commitments and the nature of reserves. The Trustees will take into consideration the future plans of the Trust and its schools, the uncertainty over future income streams and other key risks (such as pupil numbers). The amount of total funds at 31 August 2024 are £8,039k (2023: £8,658k) which are all restricted funds not available for general purposes of the Academy Trust. Trustees will look to establish an appropriate level of free reserves. This is to provide sufficient working capital to cover delays between spending and receipt of grants and to provide a cushion to deal with unexpected emergencies such as urgent maintenance. In the absence of free reserves the need for day to day working capital is met by careful management of the bank balance. At 31 August 2024 the Trust had £NIL free reserves (2023: £NIL), the trustees are mindful that the Trust needs to accumulate free and unrestricted reserves.

As mentioned previously, the Trust finds itself in a deficit situation due to reasons identified previously. The Trust has reviewed the options available and has set out a project of restructuring that will secure the future of the Trust while continuing to deliver an excellent standard of teaching to its pupils. Short term support has been sought from the ESFA to enable the Trust to achieve its aims and return to a surplus position and accumulating reserves.

Investment policy

Due to the nature of funding, the Academy Trust may at times hold cash balances surplus to its short term requirements. SAIL Academy Trust has an investment policy where Trustees must be clear about what they aim to achieve through financial investment. They must consider exactly what they want to do, how they intend to do it and what the timescale will be. They must also consider the school’s long and short-term financial commitments as well as its expected income. No funds were invested or held on deposits during the period.

SAIL ACADEMY TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 14 -
Principal risks and uncertainties

The Trustees recognise that the defined benefit scheme deficit represents a significant potential liability. However as the Trustees consider the Academy Trust is able to meet its known annual contributions for the foreseeable future, the risk is minimised.

The Trustees are responsible for the management of the risks that schools are exposed to and have overall responsibility for effective and appropriate systems of control.

The Trustees have assessed the major risks to which the Academy Trust is exposed, in particular those relating to the specific teaching, provision of facilities and other operational areas and its finances. The Trustees have implemented a system to assess risks that the Academy Trust faces, especially in the operational areas (e.g. in relation to teaching, health and safety and safeguarding) and in relation to control of finance. They maintain systems including operational procedures and internal financial controls in order to minimise risk.

The principal risk factors that may affect the Academy are outlined below. Not all factors are within the Academy’s control.

Government funding

 

The Academy Trust has considerable reliance on continued government funding through the ESFA. During the period of 1 September 2023 and 31 August 2024, most of the Academy Trust’s revenue was public funded and this level of requirement is expected to continue. There can be no assurance that government policy or practice will remain the same or that public funding will continue at the same levels or on the same terms.

The risk is mitigated by:

Pupil roll

The planned capacity of the Academy Trust is 770 in the age range up to 3-11 years. New Park Primary School has a pupil roll of 481 while Roscoe Primary School has a pupil roll of 289.

 

Reputation

The success of the Academy Trust is dependent on continuing to attract applicants in sufficient numbers by maintaining the highest educational standards. To mitigate this risk, the Trustees ensure that pupil success and achievement are closely monitored and reviewed.

Staffing

The success of the Academy Trust is reliant on the quality of its staff so the Trustees monitor and review policies and procedures to ensure continued development and training of staff as well as ensuring there is clear succession planning.

Safeguarding and Child Protection

The Trustees continue to ensure that the highest standards are maintained in the areas of selection and monitoring of staff, the operation of child protection policies and procedures, health & safety and discipline.

Maintain adequate funding of pension liabilities

The financial statements report the share of the pension scheme deficit on the Academy's balance sheet in line with the requirements of FRS 102 s28.

Brexit

Brexit may have an impact on the culture and diversity of the children in SAIL Academy Trust as there has been some transient movement of families.

Energy and Cost of Living Rises

These may have an impact on the financial and emotional wellbeing of our families within SAIL Academy Trust.

SAIL ACADEMY TRUST
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 15 -
Plans for future periods

The Academy’s plan for the upcoming year is to work towards the aims and objectives as stated earlier in the report as well as a focus on the consolidation of the curriculum across the trust. We are ensuring that the children are having access to enrichment activities again before, during and after school.

The Academy Trust will also continue to strive to improve the levels of performance of its students at all levels and will continue to ensure that the students make a smooth and successful transition into secondary education. We have designed and implemented new systems for rigorous checks and strategic improvement in relation to the most recent of changes to the OFSTED framework. These systems will provide all leaders and practitioners in school with the tools required to make accurate judgements with rigour and then use these judgements to plan strategically for continuous improvements towards excellence. The areas included are:

Funds held as custodian trustee on behalf of others

The Academy Trust does not hold funds on behalf of others.

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 Mitchell Charlesworth (Audit) Limited 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 18 December 2024 and signed on its behalf by:

C A McBride
Chair of Trustees
SAIL ACADEMY TRUST
GOVERNANCE STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024
- 16 -
Scope of responsibility

As trustees, we acknowledge we have overall responsibility for ensuring that SAIL Academy 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 the DFE’s Governance Handbook and completely framework for governors.

The board of trustees has delegated the day-to-day responsibility to the Principal, as accounting officer, for ensuring financial controls conform with the requirements of both propriety and good financial management and in accordance with the requirements and responsibilities assigned to it in the funding agreement between SAIL Academy 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

With no separate committees in place, Trustees meet as a whole governing body. The Trustee Board may from time to time establish Working Groups to perform specific tasks over a limited timescale.

The information on governance included here supplements that described in the Trustees’ Report and in the statement of Trustees’ responsibilities.

The trustees met regularly throughout the year and were informed of all the procedures and risk assessments that were put in place at both schools. They also regularly informed about Safeguarding, Curriculum and Teaching and Learning throughout the period. Data is shared with the board and gives trustees enough information to provide challenging questions for the Leadership team and the CEO.

During the period there have been five formal meetings for Trustees and three meetings for the Members of the Trust.

Attendance during the year at meetings of Trustees was as follows:

Trustees
Meetings attended
Out of possible
C A McBride (Chair of Trustees)
5
5
K Arands (Appointed 1 September 2023)
3
5
P Cadden
4
5
S M King
4
5
K O'Brien
4
5
E G Sullivan
0
5

 

Conflicts of interest

The Trust maintains a Register of Interests for members, trustees and members of the Senior Leadership Team to ensure no conflicts of interest. The Accounting Officer ensures no conflicts with any new suppliers to the trust.

Governance reviews

SAIL Academy Trust carries out reviews of its governance, which includes an assessment of its own effectiveness. The trustees recruited two new trustees during this period to strengthen the board.

SAIL ACADEMY TRUST
GOVERNANCE STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 17 -
Review of value for money

As accounting officer, the Principal has responsibility for ensuring that the academy trust delivers good value in the use of public resources. The accounting officer understands that value for money refers to the educational and wider societal outcomes, as well as estates safety and management, achieved in return for the taxpayer resources received.

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

 

The purpose of the system of internal control

The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk of failure to achieve policies, aims and objectives. It can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an on-going process designed to identify and prioritise the risks to the achievement of academy trust policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically. The system of internal control has been in place in SAIL Academy 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 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 risk and control framework

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

 

SAIL ACADEMY TRUST
GOVERNANCE STATEMENT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 18 -

The Board of Trustees has considered the need for a specific internal audit function and has decided to buy in an internal audit service from Beevers and Struthers. The internal auditor’s role includes giving advice on financial matters and performing a range of checks on the academy trust's financial and other systems. In the period to 31 August 2024, the checks carried out included:

 

On an annual basis the internal auditor reports to the Board of Trustees on the operation of the systems of control and on the discharge of the Board of Trustees financial responsibilities. They annually prepare a summary report outlining the areas reviewed, key findings, recommendations and conclusions to help the Board consider actions and assess year on year progress.

Review of effectiveness

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

 

The accounting officer has been advised of the implications of the result of their review of the system of internal control 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 academy trust has an adequate and effective framework for governance, risk management and control.

Approved by order of the board of trustees on 18 December 2024 and signed on its behalf by:

C A McBride
A Whittle
Chair of Trustees
Accounting Officer
SAIL ACADEMY TRUST
STATEMENT OF REGULARITY, PROPRIETY AND COMPLIANCE
FOR THE YEAR ENDED 31 AUGUST 2024
- 19 -

As accounting officer of SAIL Academy 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.

Accounting Officer
18 December 2024
SAIL ACADEMY TRUST
STATEMENT OF TRUSTEES' RESPONSIBILITIES
FOR THE YEAR ENDED 31 AUGUST 2024
- 20 -

The trustees (who are also the directors of SAIL Academy 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 18 December 2024 and signed on its behalf by:

C A McBride
Chair of Trustees
SAIL ACADEMY TRUST
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SAIL ACADEMY TRUST
FOR THE YEAR ENDED 31 AUGUST 2024
- 21 -

Opinion

We have audited the accounts of SAIL Academy 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 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.

Emphasis of matter - financial statements prepared on a basis other than a going concern

We draw attention to Note 1.2 to the financial statements which explains that the trustees have agreed in principle for the schools in SAIL Academy Trust to join another Trust. At the date of re-brokerage SAIL Academy Trust would cease to exist and would therefore cease to be 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.

SAIL ACADEMY TRUST
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SAIL ACADEMY TRUST (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 22 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the academy trust and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report, including the incorporated strategic report.

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

-

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

-

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

-

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

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

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

Auditor's responsibilities for the audit of the accounts

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

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

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

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

 

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

 

SAIL ACADEMY TRUST
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SAIL ACADEMY TRUST (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 23 -

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:

 

(i) The presentation of the academy trust's Statement of Financial Activities, (ii) revenue recognition (iii) the overstatement of salary and other costs (iv) the assumptions used in the calculation of the valuation of the surplus or deficit on the defined benefit pension scheme and the movements for the year. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

 

We also obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and the Statement of Recommended Practice - 'Accounting and Reporting by Charities' issued by the joint SORP making body, along with the Academies Financial Handbook and Accounts Direction.

 

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the academy trust's ability to operate or to avoid a material penalty. This includes regulations concerning Data Protection and Safeguarding.

Audit response to risks identified

As a result of performing the above, we identified the presentation of the academy trust's Statement of Financial Activities, revenue recognition and overstatement of wages and other costs as the key audit matters related to the potential risk of fraud. The key audit matters section of our report explains the matters in more detail and also describes the specific procedures we performed in response to those key audit matters.

 

In addition to the above, our procedures to respond to risks identified included the following:

 

 

 

 

 

 

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

SAIL ACADEMY TRUST
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SAIL ACADEMY TRUST (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 24 -

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.

Philip Griffiths (Senior Statutory Auditor)
for and on behalf of Mitchell Charlesworth (Audit) Limited
19 December 2024
Accountants
Statutory Auditor
3rd Floor
5 Temple Square
Temple Street
Liverpool
Merseyside
L2 5RH
SAIL ACADEMY TRUST
INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO SAIL ACADEMY TRUST AND THE EDUCATION AND SKILLS FUNDING AGENCY
FOR THE YEAR ENDED 31 AUGUST 2024
- 25 -

In accordance with the terms of our engagement letter dated 12 August 2024 and further to the requirements of the Education and Skills Funding Agency (ESFA) as included in the Academies Accounts Direction 2023 to 2024, we have carried out an engagement to obtain limited assurance about whether the expenditure disbursed and income received by SAIL Academy 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 SAIL Academy Trust and ESFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to SAIL Academy 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 SAIL Academy Trust and ESFA, for our work, for this report, or for the conclusion we have formed.

Respective responsibilities of SAIL Academy Trust's accounting officer and the reporting accountant

The accounting officer is responsible, under the requirements of SAIL Academy Trust’s funding agreement with the Secretary of State for Education dated 2 February 2018 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 Accountants 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 included:

 

This work was integrated with our audit work on the financial statements to the extent that work was able to support the regularity conclusion.

SAIL ACADEMY TRUST
INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO SAIL ACADEMY TRUST AND THE EDUCATION AND SKILLS FUNDING AGENCY (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 26 -
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
Mitchell Charlesworth (Audit) Limited
3rd Floor
5 Temple Square
Temple Street
Liverpool
Merseyside
L2 5RH
Dated: 19 December 2024
SAIL ACADEMY TRUST
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2024
- 27 -
Unrestricted
Restricted funds:
Total
Total
funds
General
Fixed asset
2024
2023
Notes
£'000
£'000
£'000
£'000
£'000
Income and endowments from:
Donations and capital grants
3
-
-
41
41
28
Charitable activities:
- Funding for educational operations
4
-
5,024
-
5,024
4,791
Other trading activities
5
-
138
-
138
84
Total
-
5,162
41
5,203
4,903
Expenditure on:
Charitable activities:
- Educational operations
8
-
5,209
592
5,801
5,603
Total
6
-
5,209
592
5,801
5,603
Net expenditure
-
(47)
(551)
(598)
(700)
Transfers between funds
17
-
6
(6)
-
-
Other recognised gains/(losses)
Actuarial (losses)/gains on defined benefit pension schemes
19
-
(21)
-
(21)
688
Net movement in funds
-
(62)
(557)
(619)
(12)
Reconciliation of funds
Total funds brought forward
-
(2,070)
10,728
8,658
8,670
Total funds carried forward
-
(2,132)
10,171
8,039
8,658
SAIL ACADEMY TRUST
STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED)
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2024
- 28 -
Comparative year information
Unrestricted
Restricted funds:
Total
Year ended 31 August 2023
funds
General
Fixed asset
2023
Notes
£'000
£'000
£'000
£'000
Income and endowments from:
Donations and capital grants
3
-
12
16
28
Charitable activities:
- Funding for educational operations
4
-
4,791
-
4,791
Other trading activities
5
-
84
-
84
Total
-
4,887
16
4,903
Expenditure on:
Charitable activities:
- Educational operations
8
-
5,010
593
5,603
Total
6
-
5,010
593
5,603
Net expenditure
-
(123)
(577)
(700)
Transfers between funds
17
-
(16)
16
-
Other recognised gains/(losses)
Actuarial gains on defined benefit pension schemes
19
-
688
-
688
Net movement in funds
-
549
(561)
(12)
Reconciliation of funds
Total funds brought forward
-
(2,619)
11,289
8,670
Total funds carried forward
-
(2,070)
10,728
8,658
SAIL ACADEMY TRUST
BALANCE SHEET
AS AT 31 AUGUST 2024
- 29 -
2024
2023
Notes
£'000
£'000
£'000
£'000
Fixed assets
Tangible assets
12
10,171
10,728
Current assets
Debtors
13
133
178
Cash at bank and in hand
108
157
241
335
Current liabilities
Creditors: amounts falling due within one year
14
(655)
(574)
Net current liabilities
(414)
(239)
Total assets less current liabilities
9,757
10,489
Creditors: amounts falling due after more than one year
15
(18)
(21)
Net assets excluding pension liability
9,739
10,468
Defined benefit pension scheme liability
19
(1,700)
(1,810)
Total net assets
8,039
8,658
Funds of the academy trust:
Restricted funds
17
- Fixed asset funds
10,171
10,728
- Restricted income funds
(432)
(260)
- Pension reserve
(1,700)
(1,810)
Total restricted funds
8,039
8,658
Unrestricted income funds
17
-
-
Total funds
8,039
8,658

The accounts on pages 27 to 50 were approved by the trustees and authorised for issue on 18 December 2024 and are signed on their behalf by:

C A McBride
Chair of Trustees
Company registration number 11099763 (England and Wales)
SAIL ACADEMY TRUST
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024
- 30 -
2024
2023
Notes
£'000
£'000
£'000
£'000
Cash flows from operating activities
Net cash (used in)/provided by operating activities
20
(162)
19
Cash flows from investing activities
Capital grants from DfE Group
41
48
Purchase of tangible fixed assets
(35)
(37)
Net cash provided by investing activities
6
11
Cash flows from financing activities
New loans advanced
248
-
Repayment of loans
(141)
(3)
Net cash provided by/(used in) financing activities
107
(3)
Net (decrease)/increase in cash and cash equivalents in the reporting period
(49)
27
Cash and cash equivalents at beginning of the year
157
130
Cash and cash equivalents at end of the year
108
157
SAIL ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 31 -
1
Accounting policies

SAIL Academy 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.

1.1
Basis of preparation

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

 

The academy trust is a public benefit entity under FRS 102 and has therefore applied the relevant public benefit requirements of FRS 102.

 

The financial statements are presented in sterling which is also the functional currency of the academy trust.

Monetary amounts in these financial statements are rounded to the nearest £1,000, except where otherwise indicated.

1.2
Going concern

As part of the focus of the viability of the Trust, and discussions with the ESFA, the Board of Trustees concluded that, in its existing structure the Trust, was not viable and therefore should seek other trusts to potentially merge with. Having shortlisted three trusts, the Chair of Trust invited the prospective trusts to give presentations to the Trust Board and senior management, the outcome of which was to make a formal approach to Northern Schools Trust for their consideration as to admitting SAIL Academy Trust into their trust. 

The Board of Northern Schools Trust accepted our proposal and having undergone a period of due diligence, and the proposal accepted by the Department of Education, SAIL Academy Trust joined Northern Schools Trust on 1 October 2024.  On this basis these financial statements are not prepared under the going concern basis of accounting as SAIL Academy Trust will cease to exist and therefore no longer a going concern. 

1.3
Income

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

Grants

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

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

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

SAIL ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 32 -
Donations

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

Other income

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

Donated goods, facilities and services

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

Donated fixed assets

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

1.4
Expenditure

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

 

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

All resources expended are inclusive of irrecoverable VAT.

Charitable activities

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

SAIL ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 33 -
1.5
Tangible fixed assets and depreciation

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

 

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

Leasehold land and buildings
Leasehold land - over 125 years, buildings - 2-10% per annum
Computer equipment
25% / 50% per annum
Fixtures, fittings & equipment
25% per annum

Assets in the course of construction are not depreciated until such time as the asset to which they relate becomes available for use

 

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

1.6
Liabilities

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

1.7
Leased assets

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

1.8
Financial instruments

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

Financial assets

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

 

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

SAIL ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 34 -
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.

Derecognition of financial assets and liabilities

A financial asset is derecognised only when the contractual rights to cash flow expire or are settled, or substantially all the risks and the rewards of ownership are transferred to another party, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. A financial liability (or part thereof) is derecognised when the obligation specified in the contract is discharged, cancelled or expires.

1.9
Taxation

The academy trust is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the academy trust is potentially exempt from taxation in respect of income or capital gains received within categories covered by chapter 3 part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

1.10
Pensions benefits

Retirement benefits to employees of the academy trust are provided by the Teachers' Pension Scheme ('TPS') and the Local Government Pension Scheme ('LGPS'). These are defined benefit schemes and the assets are held separately from those of the academy trust.

The TPS is an unfunded scheme and contributions are calculated to spread the cost of pensions over employees' working lives with the academy trust in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary based on quadrennial valuations using a prospective unit credit method. The TPS is an unfunded multi-employer scheme with no underlying assets to assign between employers. Consequently, the TPS is treated as a defined contribution scheme for accounting purposes and the contributions are recognised in the period to which they relate.

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

1.11
Fund accounting

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

SAIL ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 35 -

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 Department for Education Group.

2
Critical accounting estimates and areas of judgement

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

Critical accounting estimates and assumptions

The academy trust makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

The present value of the Local Government Pension Scheme defined benefit liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost or income for pensions include the discount rate. Any changes in these assumptions, which are disclosed in note 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 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
£'000
£'000
£'000
£'000
Capital grants
-
41
41
16
Other donations
-
-
-
12
-
41
41
28
SAIL ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 36 -
4
Funding for the academy trust's educational operations
Unrestricted
Restricted
Total
Total
funds
funds
2024
2023
£'000
£'000
£'000
£'000
DfE/ESFA grants
General annual grant (GAG)
-
3,623
3,623
3,493
Other DfE/ESFA grants:
- UIFSM
-
31
31
73
- Pupil premium
-
493
493
440
- Others
-
287
287
297
-
4,434
4,434
4,303
Other government grants
Local authority grants
-
590
590
488
Total funding
-
5,024
5,024
4,791
5
Other trading activities
Unrestricted
Restricted
Total
Total
funds
funds
2024
2023
£'000
£'000
£'000
£'000
Catering income
-
39
39
37
School trips
-
32
32
20
Other income
-
67
67
27
-
138
138
84
6
Expenditure
Non-pay expenditure
Total
Total
Staff costs
Premises
Other
2024
2023
£'000
£'000
£'000
£'000
£'000
Academy's educational operations
- Direct costs
3,021
582
238
3,841
3,752
- Allocated support costs
1,187
351
422
1,960
1,851
4,208
933
660
5,801
5,603
SAIL ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
6
Expenditure
(Continued)
- 37 -
Net income/(expenditure) for the year includes:
2024
2023
£'000
£'000
Operating lease rentals
29
32
Depreciation of tangible fixed assets
592
593
Fees payable to auditor for:
- Audit
18
13
- Other services
2
2
- Accountancy
2
2
Net interest on defined benefit pension liability
85
96
7
Central services

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

 

The academy trust charges for these services on the following basis:

 

 

Included in the costs below are recharged payroll costs of £249k (2023: £518k) relating to New Park Primary School and £166k (2023: £316k) relating to Roscoe Primary School.

The amounts charged during the year were as follows:
2024
2023
£'000
£'000
New Park Primary School
344
604
Roscoe Primary School
229
374
573
978
SAIL ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 38 -
8
Charitable activities
2024
2023
All from restricted funds:
£'000
£'000
Direct costs
Educational operations
3,841
3,752
Support costs
Educational operations
1,960
1,851
5,801
5,603
2024
2023
£'000
£'000
Analysis of support costs
Support staff costs
1,187
1,104
Depreciation
10
11
Technology costs
36
50
Premises costs
341
295
Legal costs
78
56
Other support costs
263
296
Governance costs
45
39
1,960
1,851
SAIL ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 39 -
9
Staff
Staff costs and employee benefits
Staff costs during the year were:
2024
2023
£'000
£'000
Wages and salaries
2,753
3,091
Social security costs
289
306
Pension costs
576
659
Staff costs - employees
3,618
4,056
Agency staff costs
303
67
Staff restructuring costs
287
-
4,208
4,123
Staff development and other staff costs
9
11
Total staff expenditure
4,217
4,134
Staff restructuring costs comprise:
Redundancy payments
287
-
Staff numbers
The average number of persons employed by the academy trust during the year was as follows:
2024
2023
Number
Number
Teachers
29
29
Administration and support
77
75
Management
3
4
109
108
SAIL ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
9
Staff
(Continued)
- 40 -
Higher paid staff
The number of employees whose employee benefits (excluding employer pension costs and employer national insurance contributions) exceeded £60,000 was:
2024
2023
Number
Number
£60,001 - £70,000
1
2
£70,001 - £80,000
1
1
£80,001 - £90,000
1
-
£90,001 - £100,000
-
1
£150,001 - £160,000
-
1
Key management personnel

The key management personnel of the academy trust comprise the trustees and the senior management team as listed on page 1. The total amount of key management personnel benefits (including employer pension contributions and employer national insurance contributions) received by key management personnel for their services to the academy trust was £262,843 (2023: £477,944).

10
Trustees' remuneration and expenses

None of the trustees has been paid remuneration or has received other benefits from an employment with the academy trust.

During the year, no expenses (2023: £900) were reimbursed or paid directly to trustees (2023: one trustee).

 

Other related party transactions involving the trustees are set out within the related parties note.

11
Trustees' and officers' insurance

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

SAIL ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 41 -
12
Tangible fixed assets
Leasehold land and buildings
Computer equipment
Fixtures, fittings & equipment
Total
£'000
£'000
£'000
£'000
Cost
At 1 September 2023
13,374
228
137
13,739
Additions
-
-
35
35
At 31 August 2024
13,374
228
172
13,774
Depreciation
At 1 September 2023
2,771
143
97
3,011
Charge for the year
527
37
28
592
At 31 August 2024
3,298
180
125
3,603
Net book value
At 31 August 2024
10,076
48
47
10,171
At 31 August 2023
10,603
85
40
10,728
13
Debtors
2024
2023
£'000
£'000
VAT recoverable
34
44
Other debtors
-
74
Prepayments and accrued income
99
60
133
178
14
Creditors: amounts falling due within one year
2024
2023
£'000
£'000
Government loans
113
3
Trade creditors
231
287
Other taxation and social security
60
61
Other creditors
138
106
Accruals and deferred income
113
117
655
574
SAIL ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 42 -
15
Creditors: amounts falling due after more than one year
2024
2023
£'000
£'000
Government loans
18
21
2024
2023
Analysis of loans
£'000
£'000
Wholly repayable within five years
131
24
Less: included in current liabilities
(113)
(3)
Amounts included above
18
21
Loan maturity
Debt due in one year or less
113
3
Due in more than one year but not more than two years
3
3
Due in more than two years but not more than five years
10
10
Due in more than five years
5
8
131
24

Included above is a CIF loan of £30k taken out in September 2020 at an interest rate of 2.22%. The loan is being repaid over a period of 10 years with repayments at £277 a month.

 

Also included is an Advanced Recovery loan of £248k taken out in November 2023 and repayable over 16 months, Repayments of £15,478 per month commenced in December 2023.

16
Deferred income
2024
2023
£'000
£'000
Deferred income is included within:
Creditors due within one year
51
34
Deferred income at 1 September 2023
34
-
Released from previous years
(25)
-
Resources deferred in the year
42
34
Deferred income at 31 August 2024
51
34

The academy was holding funds received in advance in respect of additional capital grant allocations.

SAIL ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 43 -
17
Funds
Balance at
Gains,
Balance at
1 September
losses and
31 August
2023
Income
Expenditure
transfers
2024
£'000
£'000
£'000
£'000
£'000
Restricted general funds
General Annual Grant (GAG)
(277)
3,623
(3,778)
6
(426)
UIFSM
-
31
(74)
-
(43)
Pupil premium
-
493
(456)
-
37
Other DfE/ESFA grants
17
287
(304)
-
-
Other government grants
-
590
(590)
-
-
Other restricted funds
-
138
(138)
-
-
Pension reserve
(1,810)
-
131
(21)
(1,700)
(2,070)
5,162
(5,209)
(15)
(2,132)
Restricted fixed asset funds
Inherited on conversion
9,636
-
(470)
-
9,166
DfE group capital grants
1,035
41
(83)
(6)
987
Capital expenditure from GAG
57
-
(39)
-
18
10,728
41
(592)
(6)
10,171
Total restricted funds
8,658
5,203
(5,801)
(21)
8,039
Total funds
8,658
5,203
(5,801)
(21)
8,039

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

 

Restricted general funds

 

 

Restricted fixed asset funds

 

SAIL ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
17
Funds
(Continued)
- 44 -
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
£'000
£'000
£'000
£'000
£'000
Restricted general funds
General Annual Grant (GAG)
-
3,493
(3,494)
(276)
(277)
UIFSM
-
73
(73)
-
-
Pupil premium
-
440
(440)
-
-
Other DfE/ESFA grants
-
297
(280)
-
17
Other government grants
-
488
(488)
-
-
Other restricted funds
(132)
96
(224)
260
-
Pension reserve
(2,487)
-
(11)
688
(1,810)
(2,619)
4,887
(5,010)
672
(2,070)
Restricted fixed asset funds
Inherited on conversion
10,060
-
(470)
46
9,636
DfE group capital grants
1,229
16
(82)
(128)
1,035
Capital expenditure from GAG
-
-
(41)
98
57
11,289
16
(593)
16
10,728
Total restricted funds
8,670
4,903
(5,603)
688
8,658
Total funds
8,670
4,903
(5,603)
688
8,658
Total funds analysis by academy
2024
2023
Fund balances at 31 August 2024 were allocated as follows:
£'000
£'000
New Park Primary School
397
191
Roscoe Primary School
(829)
(451)
Total before fixed assets fund and pension reserve
(432)
(260)
Restricted fixed asset fund
10,171
10,728
Pension reserve
(1,700)
(1,810)
Total funds
8,039
8,658

The comparative figures have been restated to reflect the correct allocation between each school.

SAIL ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
17
Funds
(Continued)
- 45 -
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
£'000
£'000
£'000
£'000
£'000
£'000
New Park Primary School
2,152
567
146
314
3,179
3,162
Roscoe Primary School
1,165
541
41
283
2,030
1,848
3,317
1,108
187
597
5,209
5,010

The costs attributable to central services have not been shown separately as they have been recharged directly to the two schools above.

18
Analysis of net assets between funds
Unrestricted
Restricted funds:
Total
Funds
General
Fixed asset
Funds
£'000
£'000
£'000
£'000
Fund balances at 31 August 2024 are represented by:
Tangible fixed assets
-
-
10,171
10,171
Current assets
-
241
-
241
Current liabilities
-
(655)
-
(655)
Non-current liabilities
-
(18)
-
(18)
Pension scheme liability
-
(1,700)
-
(1,700)
Total net assets
-
(2,132)
10,171
8,039
Unrestricted
Restricted funds:
Total
Funds
General
Fixed asset
Funds
£'000
£'000
£'000
£'000
Fund balances at 31 August 2023 are represented by:
Tangible fixed assets
-
-
10,728
10,728
Current assets
-
335
-
335
Current liabilities
-
(574)
-
(574)
Non-current liabilities
-
(21)
-
(21)
Pension scheme liability
-
(1,810)
-
(1,810)
Total net assets
-
(2,070)
10,728
8,658
SAIL ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 46 -
19
Pension and similar obligations

The academy trust's employees belong to two principal pension schemes: the Teachers' Pension Scheme England and Wales (TPS) for academic and related staff; and the Local Government Pension Scheme (LGPS) for non-teaching staff, which is managed by Mersey Pension Fund. 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 £69,539 were payable to the schemes at 31 August 2024 (2023: £61,203) and are included within creditors.

Teachers' Pension Scheme
Introduction

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

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

Valuation of the Teachers' Pension Scheme

The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to ensure scheme costs are recognised and managed appropriately and the review specifies the level of future contributions.

Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2020. The valuation report was published by the Department for Education on 27 October 2023, with the SCAPE rate, set by HMT, applying a notional investment return based on 1.7% above the rate of CPI. The key elements of the valuation outcome are:

The result of this valuation has been 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 £312,305 (2023: £299,864).

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.

SAIL ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
19
Pension and similar obligations
(Continued)
- 47 -
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 % for employers and % 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.

 

As the scheme is in deficit the academy has entered into an agreement with the scheme trustees to make additional contributions of £156,954 per year in addition to normal funding levels. These additional contributions are expected to continue for the foreseeable future.

Total contributions made
2024
2023
£'000
£'000
Employer's contributions
462
441
Employees' contributions
91
99
Total contributions
553
540
Principal actuarial assumptions
2024
2023
%
%
Rate of increase in salaries
4.10
4.30
Rate of increase for pensions in payment/inflation
2.70
2.90
Discount rate for scheme liabilities
5.00
5.30
Inflation assumption (CPI)
2.60
2.80
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
20.8
20.8
- Females
23.4
23.3
Retiring in 20 years
- Males
22.0
22.1
- Females
25.1
25.1
SAIL ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
19
Pension and similar obligations
(Continued)
- 48 -
The academy trust's share of the assets in the scheme
2024
2023
Fair value
Fair value
£'000
£'000
Equities
1,690
1,286
Government bonds
54
141
Corporate bonds
153
44
Cash and other liquid assets
47
27
Property
359
296
Other assets
873
677
Total market value of assets
3,176
2,471
The actual return on scheme assets was £230,000 (2023: £(70,000)).
Amount recognised in the statement of financial activities
2024
2023
£'000
£'000
Current service cost
230
348
Interest income
(144)
(98)
Interest cost
229
194
Benefit changes, curtailments and settlements gains or losses
16
8
Total amount recognised
331
452
Changes in the present value of defined benefit obligations
2024
£'000
At 1 September 2023
4,281
Current service cost
230
Interest cost
229
Employee contributions
91
Actuarial loss/(gain)
107
Benefits paid
(71)
Effect of non-routine settlements and administration expenses
9
At 31 August 2024
4,876
SAIL ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
19
Pension and similar obligations
(Continued)
- 49 -
Changes in the fair value of the academy trust's share of scheme assets
2024
£'000
At 1 September 2023
2,471
Interest income
144
Actuarial (gain)/loss
86
Employer contributions
462
Employee contributions
91
Benefits paid
(71)
Effect of non-routine settlements and administration expenses
(7)
At 31 August 2024
3,176
20
Reconciliation of net expenditure to net cash flow from operating activities
2024
2023
Notes
£'000
£'000
Net expenditure for the reporting period (as per the statement of financial activities)
(598)
(700)
Adjusted for:
Capital grants from DfE and other capital income
(41)
(16)
Defined benefit pension costs less contributions payable
19
(216)
(85)
Defined benefit pension scheme finance cost
19
85
96
Depreciation of tangible fixed assets
592
593
Decrease/(increase) in debtors
45
(111)
(Decrease)/increase in creditors
(29)
242
Net cash (used in)/provided by operating activities
(162)
19
21
Analysis of changes in net funds/(debt)
1 September 2023
Cash flows
31 August 2024
£'000
£'000
£'000
Cash
157
(49)
108
Loans falling due within one year
(3)
(110)
(113)
Loans falling due after more than one year
(21)
3
(18)
133
(156)
(23)
SAIL ACADEMY TRUST
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 50 -
22
Related party transactions

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 year, payments amounting to £2,250 (2023 - £2,200) were paid to Paul Fillis, a member, for his services as the safeguarding officer. These payments had been previously approved by the Board of Trustees. At 31 August 2024, the Academy Trust owed £500 (2023 - £750) to Paul Fillis which is included within trade creditors.

 

There were no further related party transactions in the year.

 

23
Post balance sheet events

On 1 October 2024 following agreement by all parties, both schools, New Park Primary School and Roscoe Primary School joined Northern Schools Trust.

24
Members' liability

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

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