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.
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.
Each member of the charitable company undertakes to contribute to the assets of the charitable company in the event of it being wound up while they are a member, or within one year after they cease to be a member, such amount as may be required, not exceeding £10, for the debts and liabilities contracted before they ceased to be a member.
The 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.
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.
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.
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:
To consider the Academy Trust's indicative funding, notified annually by the Department for Education (DFE) and to assess its implications for the Academy Trust. This will be in consultation with the CEO/ Headteacher and Chief Finance Officer of the Academy, in advance of the financial year, drawing any matters of significance or concern to the attention of the Trust Board.
To consider and recommend acceptance or non-acceptance of the Academy Trust budget each financial year.
To contribute to the formulation of the Academy Trust's strategic plans, through the consideration of financial priorities and proposals, in consultation with the CEO/Headteacher and Chief Finance Officer and with the stated and agreed aims and objectives of the Academy.
To receive and make recommendations on the broad budget headings and areas of expenditure to be adopted each year. This will include the level and use of any contingency fund or balances, ensuring the compatibility of all such proposals with the development priorities set out in the Academies' strategic plans.
To delegate the day to day management of the approved budget to the Headteacher, within the agreed authorisation limits.
To review financial policy including consideration of long-term planning and resourcing in accordance with each of the Academies' development plans.
To monitor and review expenditure on a regular basis and ensure compliance with the overall financial plan for the relevant Academy, and with the financial regulations of the DfE, drawing any matters of concern to the attention of the Trust Board.
To monitor and review procedures for ensuring the effective implementation and operation of financial procedures, on a regular basis, including the implementation and operation of financial procedures, on a regular basis, including the implementation of bank account arrangements and where appropriate make recommendations for improvement.
To prepare the financial statements to form part of the annual report of the Trust board to stakeholders and for filing in accordance with requirements of the Companies Act, Charity Commission and funding Agreement (including the Academy Trust Handbook).
To receive reports from the Headteacher on the management of assets including premises and their security.
To ensure that the Academies premises are inspected on an annual basis and that a planned and costed statement of priorities is prepared and reviewed.
To receive reports from the CEO/Headteacher about the staffing positions in the Academy.
Reviewing or investigating any other matters referred to the Trust Board.
To consider and advise the Trustee and Governors on standards and others matters relating to the school's curriculum.
To consider curricular issues which have implications for Finance and Personnel decisions and to make recommendations to the relevant committees or the Board of Governors.
To have regard for statutory obligations under the National Curriculum and associated documents.
To monitor pupil progress and attainment through regular updates of the collation and analysis of both Teacher Assessment and Test data.
To monitor the progress and achievement of specific of pupils including SEN, Pupil Premium, looked after children, more-able, English as an additional language, gender, ethnicity and FSM.
To have regard for the Ofsted Common Inspection Framework.
To develop an understanding of Teachers Standards.
To review, after consultation, the relevant policies linked to Teaching and Learning and Assessment and school prospectus.
To ensure the safeguarding of both pupils and staff is central to any decisions and actions that are made.
The following decisions are reserved for the Trustees:
To consider any proposals for changes to the status or constitution of the Trust and its committee structure, to appoint or remove the Chairman and/or Vice Chairman, to appoint the Chief Executive Officer (CEO) and Clerk to the Trustees, to approve the Development Plan and budget.
The Trustees are responsible for setting general policy, approving the statutory accounts, monitoring the Trust by the use of budgets and other data, and making major decisions about the direction of the Trust, its schools, capital expenditure and staff appointments.
The Trustees devolved responsibility for day to day management of the Academy to the CEO, Headteachers of the schools and the Chief Finance Officer. The CFO is the Accounting Officer.
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.
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”.
There are no significant relationships with other organisations.
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:
To provide a first class education, promoting the highest of aspirations in every single pupil enabling them to achieve their potential.
To ensure inclusivity and equality for all.
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.
We always put our 'Children First' in all that we do. We care deeply about them.
We always aim for the highest standards; we want our children to achieve the best and to make the most progress.
Our staff are practitioners of the highest quality who always strive to continually improve; we aim to always recruit personnel who share our passion, drive, determination and dedication to all of our children and families.
Our culture and ethos is one where children thrive knowing that they are safe, loved and listened to.
We foster a "can do" attitude where excuses are never tolerated. Good is never good enough as we are relentless in our pursuit of excellence.
We aim to be at the heart of our local communities, our families own our schools.
We go the extra mile for our children and their families; all barriers to learning are addressed though a range of in house services and provision, based on supporting their individual needs.
We actively promote the intrinsic value of every child as well as an attitude of tolerance and inclusiveness.
SAIL Academy Trust is committed to enriching the lives of all our children. Development of the whole child is paramount, opportunities are wide ranging, rich and available to all.
Each individual school is unique; upon joining SAIL Academy Trust we expect each school to retain and develop their own unique character whilst sharing our core values.
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:
Review of the planned initiatives as outlined in the School Development Plan (2023-24) for maintaining and improving the academic provision and achievement of the school and its pupils. The School Development plan consists of actions plans and subject leader reports from curriculum co-ordinators who focus on aspects of their area to improve and make progress in. The areas that this covers is:-
- 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
Receiving regular updates on key aspects of school life:
- 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.
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.
New Park Primary KS2 Attainment 2024
Comparisons with Local & National data & Trends over time
Maths
Achieving the Expected Standard
82% of pupils achieved the Expected Standard in 2024, this is in line with the national value. The national value is 73%.
Achieving the Higher Standard
28% of pupils achieved the Higher Standard in 2024, this is in line with the national value. The national value is 24%.
Reading
Achieving the Expected Standard
85% of pupils achieved the Expected Standard in 2024, this is in line with the national value. The national value is 74%.
Achieving the Higher Standard
18% of pupils achieved the Higher Standard in 2024, this is in line with the national value. The national value is 28%.
Writing
Achieving the Expected Standard
70% of pupils achieved the Expected Standard in 2024. The national value is 72% so this is significantly below.
Achieving Greater Depth
12% of pupils achieved Greater Depth in 2024, this is in line with the national value. The national value is 13%.
Grammar, Punctuation and Spelling (GPS)
Achieving the Expected Standard
85% of pupils achieved the Expected Standard in 2024, this is in line with the national value . The national value is 72%.
Achieving the Higher Standard
30% of pupils achieved the Higher Standard in 2024, this is in line with the national value. The national value is 30%.
Reading, Writing and Maths
Achieving the Expected Standard
62% of pupils achieved the Expected Standard in 2024. The national value is 61% so this is significantly below.
Achieving the Higher Standard
5% of pupils achieved the Higher Standard in 2024, this is in line with the national value. The national value is 8%.
Writing
Achieving the Expected Standard
67% of pupils achieved the Expected Standard in 2024, this is in line with the national value. The national value is 72%.
Achieving Greater Depth
7% of pupils Exceeded the Expected Standard in 2024, this is in line with the national value. The national value is 13%.
Grammar, Punctuation and Spelling (GPS)
Achieving the Expected Standard
63% of pupils achieved the Expected Standard in 2024, this is in line with the national value. The national value is 72%.
Exceeding the Expected Standard
23% of pupils Exceeded the Expected Standard in 2024, this is in line with the national value. The National value is 32%.
Reading, Writing and Maths
Achieving the Expected Standard
47% of pupils achieved the Expected Standard in 2024, this is in line with the national value. The national value is 61%.
Exceeding the Expected Standard
0% of pupils Exceeded the Expected Standard in 2024, this is in line with the national value. The National value is 8%.
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:
Writing – A whole school overview for writing is now provided through the Literacy Counts scheme of work, ‘Ready, Steady, Write’. All pupils take part in a daily English lesson based on this scheme of work. The teaching of writing is through carefully constructed units based around high quality texts. Each unit of work starts with a hook lesson to create interest, the unit then leads to an analysis of the text, before the pupils plan and write their own work.
Phonics – Both schools are continuing to implement the Little Wandle Letters and Sounds scheme, this is a complete systematic synthetic phonics programme (SSP) developed for schools by schools. It is based on the original Letters and Sounds, but extensively revised to provide a complete teaching programme meeting all the expectations of the National Curriculum and the Ofsted Deep Dive into reading. This is carried out across all year groups to ensure children have the phonics knowledge and skills they need. We have timetabled in rapid phonics catch up sessions alongside the daily lesson.
Reading - Alongside the phonics program we have adapted our reading scheme to incorporate phonic reading books that are matched to the phase that the children are currently working at. This has been extended into Key Stage 2 to fill the gaps that the children may have from KS1 and in upper KS2 from gaps caused by lockdown. Long-term Reading Reasoning planning to ensure that children have a wealth of opportunities to develop a thirst for reading a range of genres and are exposed to quality texts including poetry.
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.
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.
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.
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).
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.
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.
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.
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:
ensuring the Academy Trust is rigorous in delivering high quality education
focusing on maintaining and managing key relationships with the ESFA
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.
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:
Curriculum
Standards
Teaching and Learning
reading
Behaviour And Attitudes to Learning
Inclusion
Attendance
The Academy Trust does not hold funds on behalf of others.
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
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.
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:
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.
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.
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:
concentrating on the quality of teaching and learning throughout the trust, with this being led by recognised practitioners at each key stage. This has included the authorisation of new schemes of work or interventions to help address the gaps in the children’s learning or for consolidation based on evidence gathered from the assessment data.
having internal controls in place to ensure that all ordering is signed off by the headteacher and the assistant headteacher.
a scheme of delegation is in place and is reviewed annually by the board.
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.
The board of trustees has reviewed the key risks to which the academy trust is exposed together with the operating, financial and compliance controls that have been implemented to mitigate those risks. The board of trustees is of the view that there is a formal ongoing process for identifying, evaluating and managing the academy trust's significant risks that has been in place for the period 1 September 2023 to 31 August 2024 and up to the date of approval of the annual report and accounts. This process is regularly reviewed by the board of trustees.
The academy trust's system of internal control is based on a framework of regular management information and administrative procedures including the segregation of duties and a system of delegation and accountability. In particular, it includes:
comprehensive budgeting and monitoring systems with an annual budget and periodic financial reports which are reviewed and agreed by the board of trustees;
regular reviews by the finance and general purposes committee of reports which indicate financial performance against the forecasts and of major purchase plans, capital works and expenditure programmes;
setting targets to measure financial and other performance;
clearly defined purchasing (asset purchase or capital investment) guidelines;
identification and management of risks.
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:
Risks assessments
Procurement and purchases
Business continuity plan
Safeguarding
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.
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 work of the external auditor
the work of the internal auditor
the school resource management self-assessment tool
the work of the executive managers within the academy trust who have responsibility for the development and maintenance of the internal control framework.
The accounting officer has been advised of the implications of the result of their review of the system of internal control 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:
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.
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:
select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP 2019 and the Academies Accounts Direction 2023 to 2024;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts; and
prepare the accounts on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for ensuring that in its conduct and operation the charitable company applies financial and other controls, which conform with the requirements both of propriety and of good financial management. They are also responsible for ensuring that grants received from ESFA/DfE have been applied for the purposes intended.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of accounts may differ from legislation in other jurisdictions.
Approved by order of the members of the board of trustees on 18 December 2024 and signed on its behalf by:
Opinion
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.
In our opinion, based on the work undertaken in the course of the audit:
the information given in the trustees' report including the incorporated strategic report for the financial year for which the accounts are prepared is consistent with the accounts; and
the trustees' report including the incorporated strategic report has been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the academy trust and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report, including the incorporated strategic report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the accounts are not in agreement with the accounting records and returns; or
certain disclosures of trustees' remuneration specified by law are not made; or
As explained more fully in the statement of trustees' responsibilities, the trustees are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error. In preparing the accounts, the trustees are responsible for assessing the academy trust’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company, or have no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these accounts.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
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:
the nature of the industry and sector, control environment and business performance;
the academy trust's own assessment of the risks that irregularities may occur either as a result of fraud or error;
the results of our enquiries of management and members of the board of governors of their own identification and assessment of the risks of irregularities;
any matters identified having obtained and reviewed the academy trust's documentation of their policies and procedures relating to:
identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and
the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and
the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
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.
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:
reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations described above as having a direct effect on the financial statements;
enquiring of management and members of the board concerning actual and potential litigation and claims;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
reading minutes of meetings of those charged with governance and reviewing correspondence with relevant authorities where matters identified were significant;
in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
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.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
In accordance with the terms of our engagement letter dated 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.
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.
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:
Assessment of the design and operational effectiveness of the controls, policies and procedures in place to prevent fraud and error.
Detailed testing on a sample basis of areas where a material risk of irregularity is more likely to arise.
This work was integrated with our audit work on the financial statements to the extent that work was able to support the regularity 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.
The accounts on pages 27 to 50 were approved by the trustees and authorised for issue on
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.
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.
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.
All incoming resources are recognised when the academy trust has entitlement to the funds, the receipt is probable and the amount can be measured reliably.
Grants are included in the statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the balance sheet. Where income is received in advance of meeting any performance-related conditions there is not unconditional entitlement to the income and its recognition is deferred and included in creditors as deferred income until the performance-related conditions are met. Where entitlement occurs before income is received, the income is accrued.
General Annual Grant is recognised in full in the statement of financial activities in the period for which it is receivable, and any abatement in respect of the period is deducted from income and recognised as a liability.
Capital grants are recognised in full when there is an unconditional entitlement to the grant. Unspent amounts of capital grants are reflected in the balance sheet in the restricted fixed asset fund. Capital grants are recognised when there is entitlement and are not deferred over the life of the asset on which they are expended. Unspent amounts of capital grants are reflected in the balance sheet in the restricted fixed asset fund.
Donations are recognised on a receivable basis (where there are no performance-related conditions) where the receipt is probable and the amount can be reliably measured.
Other income, including the hire of facilities, is recognised in the period it is receivable and to the extent the academy trust has provided the goods or services.
Goods donated for resale are included at fair value, being the expected proceeds from sale less the expected costs of sale. If it is practical to assess the fair value at receipt, it is recognised in stock and ‘Income from other trading activities’. Upon sale, the value of the stock is charged against ‘Income from other trading activities’ and the proceeds are recognised as ‘Income from other trading activities’. Where it is impractical to fair value the items due to the volume of low value items they are not recognised in the accounts until they are sold. This income is recognised within ‘Income from other trading activities’.
Donated fixed assets are measured at fair value unless it is impractical to measure this reliably, in which case the cost of the item to the donor is used. The gain is recognised as income from donations and a corresponding amount is included in the appropriate fixed asset category and depreciated over the useful economic life in accordance with the academy trust‘s accounting policies.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
All resources expended are inclusive of irrecoverable VAT.
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.
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:
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.
Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the academy trust anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods of services it must provide.
Rentals under operating leases are charged on a straight-line basis over the lease term.
The academy trust only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the academy trust and their measurement basis are as follows.
Trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments.
Cash at bank is classified as a basic financial instrument and is measured at face value.
Trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition.
Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument.
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.
The academy trust is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the academy trust is potentially exempt from taxation in respect of income or capital gains received within categories covered by chapter 3 part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Retirement benefits to employees of the academy trust are provided by the Teachers' Pension Scheme ('TPS') and the Local Government Pension Scheme ('LGPS'). These are defined benefit schemes and the assets are held separately from those of the academy trust.
The TPS is an unfunded scheme and contributions are calculated to spread the cost of pensions over employees' working lives with the academy trust in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary based on quadrennial valuations using a prospective unit credit method. The TPS is an unfunded multi-employer scheme with no underlying assets to assign between employers. Consequently, the TPS is treated as a defined contribution scheme for accounting purposes and the contributions are recognised in the period to which they relate.
The LGPS is a funded multi-employer scheme and the assets are held separately from those of the academy trust in separate trustee administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit credit method and discounted at a rate equivalent to the current rate of return on a high-quality corporate bond of equivalent term and currency to the liabilities. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The amounts charged to net income or expenditure are the current service costs and the costs of scheme introductions, benefit changes, settlements and curtailments. They are included as part of staff costs as incurred. Net interest on the net defined benefit liability/asset is also recognised in the statement of financial activities and comprises the interest cost on the defined benefit obligation and interest income on the scheme assets, calculated by multiplying the fair value of the scheme assets at the beginning of the period by the rate used to discount the benefit obligations. The difference between the interest income on the scheme assets and the actual return on the scheme assets is recognised in other recognised gains and losses. Actuarial gains and losses are recognised immediately in other recognised gains and losses.
Unrestricted income funds represent those resources which may be used towards meeting any of the charitable objects of the academy trust at the discretion of the trustees.
Restricted fixed asset funds are resources which are to be applied to specific capital purposes imposed by funders where the asset acquired or created is held for a specific purpose.
Restricted general funds comprise all other restricted funds received with restrictions imposed by the funder/donor and include grants from the Department for Education Group.
Accounting estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The academy trust makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
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.
The academy trust has provided the following central services to its academies during the year:
human resources;
financial services;
legal services;
educational support services; or
others as arising.
The academy trust charges for these services on the following basis:
flat percentage - New Park Primary School 60% and Roscoe Primary School 40%
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 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).
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.
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.
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.
The academy was holding funds received in advance in respect of additional capital grant allocations.
The specific purposes for which the funds are to be applied are as follows:
Restricted general funds
General Annual Grant (GAG) is the core funding for the educational activities of the academy provided by the Education and Skills Funding Agency (ESFA).
Other DfE/ESFA grants are received from the DfE/ESFA and can only be utilised for the purpose intended.
Local Authority Grants are provided by Liverpool City Council and support special educational needs.
The pension reserve represents the share of the deficit of the Local Government Pension Scheme determined in accordance with FRS 102.
Restricted fixed asset funds
This represents the book value of fixed assets transferred on conversion along with assets funded by capital grants and out of general funds.
The comparative figures have been restated to reflect the correct allocation between each school.
The costs attributable to central services have not been shown separately as they have been recharged directly to the two schools above.
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.
The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pension Scheme Regulations 2014. Membership is automatic for teachers in academy trusts. All teachers have the option to opt out of the TPS following enrolment.
The TPS is an unfunded scheme to which both the member and employer makes contributions, as a percentage of salary. These contributions are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.
The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to ensure scheme costs are recognised and managed appropriately and the review specifies the level of future contributions.
Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2020. The valuation report was published by the Department for Education on 27 October 2023, with the SCAPE rate, set by HMT, applying a notional investment return based on 1.7% above the rate of CPI. The key elements of the valuation outcome are:
Employer contribution rates set at 28.68% of pensionable pay (including a 0.08% administration levy). This is an increase of 5% in employer contributions and the cost control result is such that no change in member benefits is needed.
Total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service to the effective date of £262,000 million and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £222,200 million, giving a notional past service deficit of £39,800 million.
The result of this valuation 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.
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.
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.
On 1 October 2024 following agreement by all parties, both schools, New Park Primary School and Roscoe Primary School joined Northern Schools Trust.
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.