The academy trust operates two primary special academies and two secondary special academies in Staffordshire. Its academies had a roll of 578 in the school census on May 2024.
The Academy Trust is a company limited by guarantee and an exempt charity. The charitable company’s memorandum and articles of association are the primary governing documents of the Academy Trust. The trustees of the Academy Trust are also the directors of the charitable company for the purposes of company law. The charitable company operates as the Academy Trust.
The trustees of Endeavour Multi 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.
As part of the overall insurance cover taken out with third party insurers, the Trust has taken out insurance relating to Governors' Indemnity. The limit of indemnity cover is £5,000,000 in this respect.
The management of the Endeavour Multi Academy Trust is the responsibility of the trustees who are elected and co-opted under the terms of the Articles of Association. We are committed to ensuring the correct skill sets are recruited and we follow the NGAs (National Governors Association) advice on roles and responsibilities.
Community trustees are recruited by invitation from the Chair of the Board of Trustees of persons known to the Academy Trust and who can benefit the Academy Trust with their knowledge and expertise.
We have identified the following areas that would ensure that the Trust Board has both the skills and experience to ensure due diligence is carried out in any decisions we must take. We must feel confident that decisions are based on fact, fairness and integrity. It is essential that quality of information and depth of research is explored before any decisions are made. Evidence of this will be demonstrated in key documents and minutes of meetings.
The Endeavour Multi Academy Trust is following strict guidelines as laid out by the National Association of Governance and we have hired a coach from this organisation to ensure we follow the protocols as set out by their guidance. We have a three-year rotational period. The appointments made to the Trust to date have previously been known to existing members of the Board. We feel it is important to have evidence that the person appointed has a track record of success and is a reliable advocate of the Trust's ethos.
Areas that are appointed to are:
Finance
Education and Employment
Project Management
School Improvement
Business and Enterprise
Safeguarding
It should be noted that one of our key focuses is to recruit from the 18 to 24 age range. We also have vacancies for legal and estates management however we plan to use alternative methods of communication, other than physical meetings to establish a legal dialogue when required.
The induction and training of trustees is critical in ensuring strong governance of the Endeavour Multi Academy Trust. The development of trustees is crucial to the ongoing success of the organisation.
The induction and training process for trustees includes:
Meetings with the Board of Trustees and the senior leadership team of the Academy Trust;
Attending a trustees’ meeting before becoming a trustee;
Visits to key locations or service providers;
Ongoing training in legislation and responsibilities;
An Endeavour Website with public facing and hidden trustee information included. This is a one stop shop for up to date policies and national and local publications. We are also a member of the National Governors Association and have a mentor to ensure we stay on track with up to date information and advice.
All Endeavour Trustees are encouraged to undertake personal training in addition to courses organised for all trustees, to ensure that they are up to date in their knowledge and able to carry out their roles effectively. Shared inset between all the schools in the Academy Trust include elements of trustee training and this is supported by external training providers (NGA). Trustees meet regularly with the CEO and members of school staff and receive, on a regular basis, updated copies of policies and procedures and are encouraged to have an input into school self-evaluation and improvement planning.
The Board of Trustees are responsible for the overall strategic direction of the Academy Trust. The trustees have a duty to act in the fulfilment of the Academy Trust objects. They set the strategic direction and determine the policies and procedures of the Academy Trust whilst holding each academy within the Trust to account. The trustees will meet at least three times a year and local governing body committees will report to meetings of the Board of Trustees throughout the year.
Each school within the Academy Trust is governed by two local committees. One of these is responsible for Curriculum and Learning and the other responsible for Logistics, which includes Finance. These are approved by the Board of Trustees and elected by staff and parents in a manner similar to the Board of Trustees. The local governing committees are responsible for determining the strategic direction of the school in accordance with the overall strategic direction of the Academy Trust. The local governing committee will engage with their local community, constructively challenge the leadership team of the school and provide evaluative feedback and supporting evidence to the Board of Trustees on the impact and effectiveness of the collective and individuals aims, objectives, policies, targets and future plans. This will in turn be monitored by the Trust’s Education Development Officer (EDO).
The Board of Trustees and each local governing committee do not exercise a managerial role. The leadership and management across the Academy Trust are delegated by the Board of Trustees to the Senior Leadership Team within each academy. The Senior Leadership Teams are responsible at an executive level for implementing the policies laid down by the Board of Trustees and reporting back to them through various committees. This includes actions concerning the budget, staffing, and school improvement. The schools will also report on any risks to their organisation. These will be reviewed at the Trust's Audit and Risk Committee.
The Chief Executive Officer is the Accounting Officer and is responsible for the authorisation of spending within agreed budgets. Some spending control is devolved to designated budget holders within the hierarchy of limits and in accordance with the approved Financial Regulations and Financial Scheme of Delegation.
The Endeavour Multi Academy Trust has decided to follow the National Governance Scheme of delegation to ensure we are open and transparent to new joiners and following a tried and tested model of delegation. We are also following the NGA framework for Ethical Leadership in Education. We are determined that our academy operates with integrity and honesty. The Nolan principles are always observed in the management of this academy.
The arrangements for setting the pay and remuneration of the key management personnel of the schools within the Academy Trust are subject to the 'school teachers pay and conditions document and guidance on school teachers pay and conditions’. The determination of leadership pay is in line with the school group size and relevant scale points attributed to the group pay range.
Incremental rises are dependent upon the successful completion of the previous years’ performance management cycle and quality assured by the Senior Leadership Team within each academy. Recommendations for pay increases are made by the Senior Leadership Team to the academy finance committee and their decision is validated by the Board of Trustees at the Autumn term meeting.
Arrangements for executive pay are included in the Trust’s Executive Pay Policy.
The Local Governing Boards encourage representation from staff members, with the composition of the Boards including staff from across all four schools.
As the Trust has crossed the threshold of 250 employees, work to improve the engagement of employees will form part of the Trust Strategic Plan for the coming year.
The Trust encourages applications for employment from disabled persons and persons with special educational needs. The Trust fairly treats employees who become disabled and they have equal access to the training and career development in their role.
In line with the Trust’s vision and values, suppliers are sought for the full range of goods and services that our schools need. The tendering process is open and transparent to ensure that best value for money is achieved from these relationships.
The Trust regularly consults with all stakeholders on a wide range of topics affecting the schools and their pupils. Legal advice is obtained from the Trust’s solicitors where needed. Parents have a voice through their parent governors and there is Trust representation at all governors meetings. Through the MAT Leadership meetings, items raised by stakeholders on the ground can be discussed at Trust level, with appropriate actions being taken.
The members, Board of Trustees, academy committee members and the accounting officer all complete a pecuniary interest declaration on an annual basis. This declaration sets out any relationship with the Academy Trust that is not directly related to their duties within these roles. Each individual is also required to declare a potential ‘conflict of interest’ if it arises between such declarations. Once a declaration has been made, the individual concerned takes no further part in any decision relating to the matter declared.
We have identified our development needs for the year beginning September 1
The areas are;
1. School Improvement
2. Leadership Development
3. Finance and Support Serv
4. Estates
5. ICT
6. Growth
7. Ethics
The development needs for the academic year 2024-25 are
• To ensure each school is empowered and supported to design/review, deliver and monitor an ambitious curriculum that meets learners’ needs and prepares them for the next stage of their education, employment and training.
• To develop and utilise summative assessment systems that allows progress to be monitored effectively by relevant stakeholders.
• To ensure internal and external quality assurance processes are effective and embedded to support school improvement.
• To create leadership and staffing capacity, so we can fulfil the requirement for future growth, through effective succession planning.
• To ensure leaders, including trustees and governors, receive suitable training, including safeguarding, so that they undertake their roles in a well-informed manner (regular audits used to identifying training needs).
• To strengthen leadership at all levels.
• To maximise the use of outlets and lettings to generate income.
• To expand the scope of the CIO charitable foundation activity.
• To provide an overview of what input our premises need, so that they provide safe, suitable and secure environments, which maximises learning opportunities.
• To develop and expand the capital assets of the Trust to better serve our learners.
• To ensure our ICT resources fully support the delivery of our curriculum in all schools.
• To ensure the Trust remains financially viable.
The strategic goals of the Academy Trust are:
The Trust will ensure that all pupils have access to a highly ambitious curriculum.
The Trust will ensure that there are effective assessment systems in place to ensure pupils achieve well.
The Trust will ensure that its performance stands up to external scrutiny.
The Trust will ensure the development of senior staff that show leadership potential to take up executive roles.
The Trust will ensure that all pupils and staff are kept safe.
The Trust will ensure that it exploits opportunities to expand the use of its facilities.
The Trust will ensure that it maximises the use of the CIO in order to access grant funding that would otherwise be unavailable to the Trust.
The Trust will ensure that our environments are safe and secure in which to work.
The Trust will ensure that its capital assets provide good value for money.
The Trust will ensure that it has sufficient resources to enable effective curriculum delivery.
The Trust will ensure the security of its long-term financial position.
The Trust will ensure that there is effective leadership at all levels within the Trust.
In setting our objectives and planning our activities the trustees have carefully considered the Charity Commission’s general guidance on public benefit.
The Trust’s Executive Leadership Team provide the Board of Trustees with a comprehensive evaluation of each academy’s performance. The data includes external analysis (examinations, Ofsted and reports from our School Improvement Partner) and also internal monitoring, evaluation and quality assurance.
Cherry Trees Primary School joined Endeavour on 1st September 2017. The school was inspected in April 2024 and was judged to be Good.
Wightwick Hall School joined Endeavour on 1st September 2017. The school was inspected in May 2022 and was judged as continuing to be Good.
Two Rivers High School joined Endeavour on 1st September 2019. The school was inspected in March 2024 and was judged as continuing to be Outstanding.
Two Rivers Primary School joined Endeavour on 1st September 2019. The school was inspected in May 2024 and was judged as continuing to be Outstanding.
After making appropriate enquiries, the Board of Trustees has a reasonable expectation that the Academy Trust has adequate resources to continue in operational existence for the foreseeable future. For this reason, the Board of Trustees continues to adopt the going concern basis in preparing the accounts. Further details regarding the adoption of the going concern basis can be found in the statement of accounting policies.
All decision making is based on the Trust’s ethical principles and ensuring the Trust is sustainable for the future.
Each Trust meeting requires attendees to declare any conflicts of interest regarding agenda items.
Employee related policies are consulted on through a JCNC (Joint Consultative and Negotiation Committee) with recognised Trade Unions.
The Trust has an Environmental Sustainability Policy, which governs any actions that may have an impact on the local community and environment.
The Trust follows the Nolan Principles to ensure that business relationships are conducted in an open and honest manner.
The Trust’s vision puts equity at the centre of all our operations.
During the financial year, an investment was approved by Trustees to move some cash from the Trust’s current account into a six-month fixed term deposit account in order to generate a more favourable rate of interest on the cash balances that it holds.
A review of the principal risks highlights the financial risk involved in the reliance solely on government funding and the limited influence of the Academy Trust on the level and future of this funding.
The deficit on the Local Government Pension Scheme represents a concern. However, Parliament has agreed at the request of the Secretary of State for Education, to guarantee that in the event of academy closure, outstanding Local Government Pension Scheme liability would be met by the Department for Education. This guarantee came into force on 18th July 2013.
The principal risks identified by the Trustees include:
Headteacher or wider SLT absence in schools – Measures to mitigate this risk include robust performance management measures and the adoption and application of absence management processes, including occupational health and counselling services.
Governor and Trustee recruitment – Measures to mitigate this include the commissioning of Governors for Schools and Inspiring Governance to source suitable individuals, as well as putting in place induction and training programmes.
The risk that schools fail to operate within the strategic objectives agreed by the local governing board – Measures to mitigate this include regular governors meetings, oversight by Trustees and monitoring by the Education Development Officer.
Failure to develop a robust estates strategy and ensure that the trust’s estate is safe, well maintained and complies with relevant regulation – Measures to mitigate this include, from September 2024, the appointment of an Estates Manager, whose role is dedicated to ensuring that the estates strategy is implemented.
The schools within the Trust undertake a variety of fundraising activities to support several charities and the Trust itself. All fundraising undertaken during the year was monitored by the Trustees.
The Trust is currently working with a company to identify and access new potential fundraising opportunities.
We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2024 UK Government’s Conversion Factors for Company Reporting.
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2 equivalent per pupil, the recommended ratio for the sector.
We have installed smart meters across all sites and increased video conferencing technology for staff meetings, to reduce the need for travel between sites.
The Trust publishes its Strategic Plan on its website. The key area for the coming year is to work with schools that are interested in joining, and have applied to join, our Trust.
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 Endeavour Multi 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 DfE's Governance Handbook and competency framework for governance.
The Board of Trustees has delegated the day-to-day responsibility to the Chief Executive 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 Endeavour Multi 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.
The information on governance included here supplements that described in the Trustees' Report and in the Statement of Trustees' Responsibilities. The Board of Trustees has formally met 3 times during the year. Attendance during the year at meetings of the Board of Trustees was as follows:
There have been no significant changes to the Board over the last financial year.
Trustees are required to complete an annual Declaration of Business Interests form, which is published on the Trust website.
We have a strong relationship with the National Governor Association (NGA) and are part of their Ethical Leadership Program. We have ensured our processes follow their recommendations and are very diligent in reminding ourselves at every opportunity that we are keeping to this plan.
Trustees complete an annual declaration of business interests and at the beginning of each meeting are requested to provide an update of this and declare whether a relevant interests applies against meeting agenda items. This is managed centrally by the Trust.
Although the Board has not met six times during the year, the Trust believes the committees in place ensure that effective oversight of funds is maintained.
In addition to the Finance and Audit Committees (which are shown below), the Trust also had Standards and Policy Oversight Committees:-
The Standards Committee is a sub-committee of the main Board of Trustees and comprises the Chair of the Trust, the Chair of the Finance Committee and the Chair of the Audit & Risk Committee. It is responsible for the oversight of education provision and quality across the Trust and evaluating the performance of the schools against Key Performance Indicators relating to academic performance, quality of provision and care, and the impact of CPD.
Attendance at meetings in the year was as follows:
Trustee Meetings attended Out of a possible
S A Kibble (Chair) 2 3
S E Crane 3 3
L Blackburn 3 3
The Policy Oversight Committee is a sub-committee of the main Board of Trustees. Its terms of reference include:
Providing a forum for the detailed scrutiny of Trust policies
Approving the policy review schedule recommended by the Executive Leadership Team.
Reviewing and updating any policies not owned by either the Finance Committee or the Audit & Risk Committee.
Reviewing updated policies owned by either the Finance Committee or the Audit & Risk Committee, prior to their approval by the Board of Trustees.
Presenting all reviewed and updated policies with recommendations for their approval to the Board of Trustees.
Attendance at meetings in the year was as follows:
Trustee Meetings attended Out of a possible
E Leonard (Chair of Policy Oversight) 2 2
S A Kibble (Chair) 2 2
The Trust engaged a consultant to undertake a review of governance at local board level. They attended meetings of both local boards , examined documentation (including headteachers reports and link governors reports) and held discussions with Chairs of both boards.
A report was presented to a group comprising members of the executive central team, a member of the Trust board and one of the chairs of the local board. An action plan was formulated which has been shared with chairs of both boards and the headteachers. This work will be further developed through strategy meetings involving headteachers and the newly appointed Director of Education.
The Finance Committee is a sub-committee of the main board of trustees. Its purpose is to review and monitor the financial position of the schools. Management accounts are prepared regularly, which indicate the financial performance of schools against budgets and re-forecasts. There has been a heavy focus on cashflow forecasting since conversion to ensure schools have sufficient assets to meet their ongoing obligations. Logistics committees have been set up within the local governing system to monitor the schools budgets.
Attendance at meetings in the year was as follows:
The Audit and Risk Committee is also a sub-committee of the main board of trustees. Its purpose is to advise the Trust Board on the adequacy and effectiveness of the systems of internal control, arrangements for risk management, control and governance processes and securing economy, efficiency and effectiveness across the Trust.
Attendance at meetings in the year was as follows:
As accounting officer, the Chief Executive Officer 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 where appropriate.
The accounting officer for the academy trust has delivered improved value for money during the year by:
Re-tendering the contracts for cleaning services across the Trust and appointing a single provider in three of our schools to ensure best quality and value for money is obtained.
Re-tendering for grounds maintenance services across the Trust and appointing a single provider in all four of our schools to ensure best quality and value for money is obtained.
Continuing to review contracts for services to ensure the Trust achieves value for money and benchmarking such items.
The Trust has invested in compliance software which is used throughout the schools which provides reports for Trustees on the safety and maintenance of the Trust’s estate.
The system of internal control is designed to manage risk to an acceptable 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 Endeavour Multi 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 decided to buy-in an internal audit service from MLG Education Services.
This option has been chosen because it is believed to provide a high level of scrutiny and provide value for money.
The reviewer's role includes giving advice on financial and other matters and performing a range of checks on the Academy Trust's financial and other systems. In particular, the checks carried out in the current period included:
Review of Estates Management
On an annual basis, the reviewer reports to the Board of Trustees through the audit committee on the operation of the systems of control and on the discharge of the financial responsibilities of the Board of Trustees, and annually prepares an annual summary report to the committee outlining the areas reviewed, key findings, recommendations and conclusions to help the committee consider actions and assess year on year progress.
As accounting officer, the Chief Executive Officer has responsibility for reviewing the effectiveness of the system of internal control. During the year in question the review has been informed by:
the work of the internal reviewer
the work of the external auditor
the financial management and governance self-assessment process or 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
correspondence from the EFSA e.g. FNtl/Ntl and ‘minded to’ letters.
The accounting officer has been advised of the implications of the result of their review of the system of internal control by the audit committee and is to ensure continuous improvement of the system is in place.
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 17 December 2024 and signed on its behalf by:
As accounting officer of Endeavour Multi 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 Endeavour Multi 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 17 December 2024 and signed on its behalf by:
Opinion
We have audited the accounts of Endeavour Multi 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 the notes to the accounts, including a summary of 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
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Academy Trust’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the accounts and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the accounts does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the accounts themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
the information given in the trustees' report including the incorporated strategic report for the financial year for which the accounts are prepared is consistent with the accounts; and
the trustees' report including the incorporated strategic report has been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Academy Trust and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report, including the incorporated strategic report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the accounts are not in agreement with the accounting records and returns; or
certain disclosures of trustees' remuneration specified by law are not made; or
As explained more fully in the statement of trustees' responsibilities, the trustees are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error. In preparing the accounts, the trustees are responsible for assessing the Academy Trust’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company, or have no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these accounts.
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 charitable company’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 trustees of their own identification and assessment of the risks of irregularities;
any matters we identified having obtained and reviewed the charity’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 trust's Statement of Financial Activities, (ii) the trust's accounting policy for 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, 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 2023-24 issued by the Education and Skills Funding Agency.
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’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 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 we carried out testing of the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates were indicative of a potential bias; and evaluated 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 for the audit of the accounts is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditors responsibilities. 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 14 March 2023 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 Endeavour Multi 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 Endeavour Multi Academy Trust and ESFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to the Endeavour Multi 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 Endeavour Multi 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 Endeavour Multi Academy Trust’s funding agreement with the Secretary of State for Education dated 30 August 2020 and the Academy Trust Handbook, extant from 1 September 2023, for ensuring that expenditure disbursed and income received is applied for the purposes intended by Parliament and the financial transactions conform to the authorities which govern them.
Our responsibilities for this engagement are established in the United Kingdom by our profession’s ethical guidance, and are to obtain limited assurance and report in accordance with our engagement letter and the requirements of the Academies Accounts Direction 2023 to 2024. We report to you whether anything has come to our attention in carrying out our work which suggests that in all material respects, expenditure disbursed and income received during the period 1 September 2023 to 31 August 2024 have not been applied to purposes intended by Parliament or that the financial transactions do not conform to the authorities which govern them.
We conducted our engagement in accordance with the Framework and Guide for External Auditors and Reporting Accountant of Academy Trusts issued by ESFA. We performed a limited assurance engagement as defined in our engagement letter.
The objective of a limited assurance engagement is to perform such procedures as to obtain information and explanations in order to provide us with sufficient appropriate evidence to express a negative conclusion on regularity.
A limited assurance engagement is more limited in scope than a reasonable assurance engagement and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in a reasonable assurance engagement. Accordingly, we do not express a positive opinion.
Our engagement includes examination, on a test basis, of evidence relevant to the regularity and propriety of the Academy Trust's income and expenditure.
The work undertaken to draw to our conclusion includes:
An assessment of the risk of material irregularity and impropriety across the Academy Trust's activities;
A review of the Academy Trust's accounting and internal procedures; and
Consideration and review of the evidence supporting the Accounting Officer's statement on regularity, propriety and compliance.
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 25 to 53 were approved by the trustees and authorised for issue on
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 financial statements are prepared in sterling, which is the functional currency of the trust. Monetary amounts in these financial statements are rounded to the nearest £'000.
The trustees assess whether the use of going concern is appropriate, ie whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charitable company to continue as a going concern. The trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the accounts and have concluded that the Academy Trust has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the Academy Trust’s ability to continue as a going concern. Thus they continue to adopt the going concern basis of accounting in preparing the accounts.
All incoming resources are recognised when the Academy Trust has entitlement to the funds, the receipt is probable and the amount can be measured reliably.
Grants are included in the statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the balance sheet. Where income is received in advance of meeting any performance-related conditions there is not unconditional entitlement to the income and its recognition is deferred and included in creditors as deferred income until the performance-related conditions are met. Where entitlement occurs before income is received, the income is accrued.
General Annual Grant is recognised in full in the statement of financial activities in the period for which it is receivable, and any abatement in respect of the period is deducted from income and recognised as a liability.
Capital grants are recognised in full when there is an unconditional entitlement to the grant. Unspent amounts of capital grants are reflected in the balance sheet in the restricted fixed asset fund. Capital grants are recognised when there is entitlement and are not deferred over the life of the asset on which they are expended.
Sponsorship income provided to the Academy Trust which amounts to a donation is recognised in the statement of financial activities in the period in which it is receivable (where there are no performance-related conditions), where the receipt is probable and it can be measured reliably.
Donations are recognised on a receivable basis (where there are no performance-related conditions) where the receipt is probable and the amount can be reliably measured.
Other income, including the hire of facilities, is recognised in the period it is receivable and to the extent the Academy Trust has provided the goods or services.
Goods donated for resale are included at fair value, being the expected proceeds from sale less the expected costs of sale. If it is practical to assess the fair value at receipt, it is recognised in stock and ‘Income from other trading activities’. Upon sale, the value of the stock is charged against ‘Income from other trading activities’ and the proceeds are recognised as ‘Income from other trading activities’. Where it is impractical to fair value the items due to the volume of low value items they are not recognised in the accounts until they are sold. This income is recognised within ‘Income from other trading activities’.
Donated fixed assets are measured at fair value unless it is impractical to measure this reliably, in which case the cost of the item to the donor is used. The gain is recognised as income from donations and a corresponding amount is included in the appropriate fixed asset category and depreciated over the useful economic life in accordance with the Academy Trust‘s accounting policies.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
All resources expended are inclusive of irrecoverable VAT.
This includes all expenditure incurred by the Academy Trust to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
These are costs incurred on the Academy Trust's educational operations, including support costs and costs relating to the governance of the Academy Trust apportioned to charitable activities.
Intangible assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Intangible assets are initially recognised at cost and are subsequently measured at cost net of amortisation and any provision for impairment.
Amortisation is provided on intangible 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:
Purchased computer software 5 years
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 other than freehold land, at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life, as follows:
A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the statement of financial activities.
Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Academy Trust anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods of services it must provide.
Rentals 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.
Stock is valued at the lower of cost and net realisable value. Net realisable value is based on estimated selling price less further costs to completion and disposal. Provision is made for obsolete and slow moving stock.
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.
Provisions
Provisions are recognised when the Academy Trust has an obligation at the reporting date as a result of a past event which it is probable will result in the transfer of economic benefits and the obligation can be estimated reliably.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.
Redundancy and termination payments
Redundancy and termination costs are recognised as an expense in the Statement of Financial Activities and a liability on the Balance Sheet immediately at the point the Academy Trust is demonstrably committed to either: terminate the employment of an employee or group of employees before normal retirement date; or provide termination benefits as a result of an offer made in order to encourage voluntary redundancy.
Accounting estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The Academy Trust makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Local Government Pension Scheme
The present value of the Local Government Pension Scheme defined benefit asset/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 22, will impact the carrying amount of the pension asset/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 asset/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 asset/liability.
FRS 102 section 28.22 allows an entity to recognise a surplus within the Local Government Pension Scheme “only to the extent it is able to recover the surplus either through reduced contributions in the future or through refunds from the plan”. The actuarial report as at 31 August 2024 indicates a defined benefit asset position, which has been capped at nil value. This is on the basis that it is uncertain that a surplus following any triennial review would result in reduced contributions for the employer, and is unlikely to result in a repayment.
The trustees have considered the classification of depreciation between direct and support costs. The deprecation charge has been allocated based on the proportion of teaching and support staff.
The academy received £214,446 (2023 - £189,531) of funding for recovery premium / catch up premium and costs incurred in respect of this funding totalled £214,446 (2022 - £189,531).
The Academy Trust has provided the following central services to its academies during the year:
Support from the Trust Executive Board – CEO / CFOO / EDO / Estates Manager
HR Advisory services including policy management and representation at JCNC
Payroll processing
School Improvement Partner
Legal retainer with the Trust’s solicitors
External audit fee
Internal audit fee
Transactional finance system licences
Provision of a Governance professional (all Trust and Governing Board meetings clerked)
Property Asset Management portal including Condition Surveys
Access to the TES recruitment portal
Procurement management
Contract management
Scoping and management of building grant applications via Condition Improvement Fund (CIF)
Scoping and management of other external grant applications
The academy trust charges for these services based on the proportion of place and pupil funding received by the academy.
The key management personnel of the Academy Trust comprise the trustees and the senior management team as listed on page 1. The total amount of employee benefits (including employer pension contributions and employer national insurance contributions) received by key management personnel for their services to the Academy Trust was £933,434 (2023: £823,331).
The value of trustees' remuneration and other benefits was £nil (2023 - £nil).
Travel and subsistence payments were made to trustees during the year as follows:
S E Crane £9 (2023: £19).
Other related party transactions involving the trustees are set out within related parties note.
In accordance with normal commercial practice, the Academy Trust has purchased insurance to protect trustees and officers from claims arising from negligent acts, errors or omissions occurring whilst on Academy Trust business. The insurance provides cover up to £5,000,000 on any one claim. It is not possible to quantify the trustees and officers indemnity element from the overall cost of insurance.
During the 31 August 2022 financial year the Trust took out two loans from Salix, which are provided interest free and repayable over 8 years from 2022.
The first loan was for £31,785 and was in relation to Two Rivers Primary School. The outstanding balance at the year end was £18,541 (£23,839 – 2023).
The second loan was for £50,056 and is in relation to Two Rivers High School. The outstanding balance at the year end was £29,199 (£37,542 – 2023).
At the balance sheet date the academy trust was holding funds received in advance for Pupil and Place funding, UIFSM and DIP funding.
The specific purposes for which the funds are to be applied are as follows:
Restricted General Funds
These comprise of all restricted funds other than restricted fixed asset fund and include grants from the Education and Skills Fund Agency and local authorities.
Under the funding agreement with the Secretary of State, the academy trust was not subject to a limit on the amount of GAG that it could carry forward.
Unrestricted Funds
These comprise of resources that may be used towards meeting any of the charitable objects of the academy trust at the discretion of the trustees.
Restricted Fixed Asset Funds
These comprise of resources which are to the applied to specific capital purposes imposed by the Education and Skills Funding Agency and local authorities where the asset acquired or created is held for a specific purpose.
Wightwick Hall School is carrying a deficit balance of £531,000 (2023 - £658,000). The academy is taking action to return these funds to a surplus.
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 Staffordshire 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.
There were outstanding contributions at the end of the financial year totalling £226,673 (2023 - £173,728).
The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pension Scheme Regulations 2014. Membership is automatic for teachers in academy trusts. All teachers have the option to opt out of the TPS following enrolment.
The TPS is an unfunded scheme to which both the member and employer makes contributions, as a percentage of salary. These contributions are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.
The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to ensure scheme costs are recognised and managed appropriately and the review specifies the level of future contributions.
Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2020. The valuation report was published by the Department for Education on 27 October 2023, with the SCAPE rate, set by HMT, applying a notional investment return based on 1.7% above the rate of CPI. The key elements of the valuation outcome are:
Employer contribution rates set at 28.68% of pensionable pay (including a 0.08% administration levy). This is an increase of 5% in employer contributions and the cost control result is such that no change in member benefits is needed.
Total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service to the effective date of £262,000 million and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £222,200 million, giving a notional past service deficit of £39,800 million.
The result of this valuation will be implemented from 1 April 2024.The next valuation result is due to be implemented from 1 April 2028.
The employer's pension costs paid to the TPS in the period amounted to £941,469 (2023: £723,468).
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 27.2% for employers and 5.9% 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.
Scheme liabilities would have been affected by changes in assumptions as follows:
The net gain recognised on scheme assets has been restricted because the full pension surplus is not expected to be recovered through refunds or reduced contributions in the future.
Owing to the nature of the academy trust and the composition of the board of trustees being drawn from local public and private sector organisations, transactions may take place with organisations in which the trustees have an interest. All transactions involving such organisations are conducted in accordance with the requirement of the AFH and in accordance with the academy trust's financial regulations and normal procurement procedures relating to connected and related party transactions. The following related party transactions took place in the financial period.
The academy trust received an amount of £10,334 (2023: £nil) from Endeavour Multi Academy Trust Charitable Foundation, Charity number 1199035 a Charitable organisation which share mutual trustee’s and members of the senior management team.
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.