The academy trust operates four academies for pupils aged 4-16 serving a catchment area in the borough of Pendle. It has a pupil capacity of 1,810 and had a roll of 1,716 in the school census dated January 2024.
The charitable company operates as The Pennine Trust, of which the academies within are:
Colne Park High School
Lord Street Primary School
Laneshaw Bridge Primary School
Blacko Primary School
The trustees of The Pennine 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.
Professional indemnity insurance is in place to protect members, trustees and officers from claims arising from negligent acts, errors or omissions occurring with regards to the trust business.
The members of the trust are responsible for the appointment of the first six trustees, thereafter the trustees may co-opt other trustees onto the board. The recruitment of trustees is solely dependent of the skills gaps that have been identified and upon the candidate's expertise, experience and skills. The number of trustees shall be a minimum of three but shall not be subject to any maximum, as referenced in the Articles of Association and they are appointed for a term of four years.
New trustees receive an induction pack outlining the roles and responsibilities of being a trustee which includes relevant policies and procedures.
Appropriate skills gap analysis is undertaken annually which is then used to inform a training programme for the next academic year.
The organisational structure is set out in the Memorandum and Articles of The Pennine Trust. The aim of the structure is to devolve responsibility and encourage involvement in decision making at all levels. The trustees have overall responsibility for the strategic direction and growth of the trust, approving the annual improvement plan and budget, monitoring the trust by reviewing financial and performance data, making staff appointments to the Senior Leadership Team and approving the annual report and financial statements. They are also responsible for all matters relating to finance, personnel and for setting the trust's general policies.
The trustees are responsible for ensuring the Local School Committees (LSC) fulfil their statutory obligations in a manner which allows the trust to fulfil its aims, ensuring procedures are in place to ensure regularity, propriety and value for money, setting general policies, budget planning and monitoring and major decision making about the direction of the trust, capital expenditure and senior staff appointments. The CEO is the Accounting Officer and is supported by the Central Team. The Central Team is responsible for implementing the policies laid down by the trustees and reporting back to them. The trustees delegate day to day operation of the academies to the headteachers in each school who are supported by school leadership.
The trustees have clear terms of reference and have four sub-committees that meet termly: Audit & Risk, Resources, Nomination and Remunerations and Standards. The trustees have Local School Committees in each academy. The LSCs also have clear terms of reference and work from the trust's Scheme of Delegation. Each committee and LSC will meet at least on a termly basis. A Trust Strategy Committee, consisting of trustees, Trust Executive Team, headteachers and Chairs of LSC's has also been formed. Trustees are encouraged to make regular visits to all four academies within the trust.
Roles and responsibilities of members, trustees, Chief Executive Officer, Local School Committees and headteachers are clearly defined within the trust's Scheme of Delegation.
Committees Organisation
Audit & Risk Committee
P White (Committee Chair)
E Gauntlett
S Wilson (Resigned 18/09/24)
S Whiteley
C Clayton
Resources Committee
M Burnham (Committee Chair)
S Whiteley
C Clayton
K Whitehead
Nomination & Remuneration Committee
A Pettinger (Committee Chair)
M Burnham
P White
K Whitehead
Standards Committee
E Gauntlett (Committee Chair)
A Pettinger
S Wilson (Resigned 18/09/24)
M Burnham
The Nomination and Remuneration Committee set the pay for the Chief Executive Officer. The Chief Executive Officer provides an annual report which reviews all other pay increases.
Trade Union Facility Time
There are no relevant trade union officials.
There have been no related parties, other connected charities or organisations to report, other than those disclosed in note 25 in these accounts.
The Pennine Trust has a clear mission of: Creating opportunity. Inspiring excellence. Shaping tomorrow. This sums up our determination to provide a high quality, all-round education for every pupil and to foster ambition in all members of our community. We want our young people to fulfil their potential so that they have the opportunities to open the doors to opportunity and can shape their own futures.
To fulfil this mission, we have very clear expectations of how all members of our community will behave. This is summed up in our values, and associated behaviours, which define the culture we are building across the trust.
Value | Defined as (single sentence) | Associated behaviours |
Ambition | We are determined to achieve our goals and believe everyone can succeed | Try our best and take pride in what we do |
Curious and eager to learn | ||
Persevere with even the hardest tasks | ||
Respect | We are considerate of other people and the environment | Polite and use good manners |
Honest and act with integrity | ||
Take responsibility for our own actions | ||
Collaboration | We work as a team to achieve our goals and for the good of our community | Include everyone and value individuality |
Listen to other people’s views | ||
Support each other to solve problems |
In addition to these values and behaviours, we are working towards our vision of an organisation where, through a child-centred approach and exceptional educational experiences we will inspire excellence from all, develop independence, build confidence and ensure readiness for tomorrow.
The trust values and behaviours are now embedded in all schools and are codified by our routines and systems. There is clear alignment across the trust with the values, which are part of everyday dialogue in the classroom and on corridors.
The BehaviourHub programme has supported implementation of new behaviour systems and approaches to ensure a consistent and robust approach across the trust. This work is ongoing and in the secondary phase there is still work to do, so that suspensions and exclusions are reduced further, whilst appropriate expectations and standards are maintained.
In pursuing growth our strategy has been to seek schools with similar values, to ensure ongoing alignment and purpose. The level of alignment and shared culture between all 3 organisations looking to merge is strong.
Another area of focus has been our people strategy, with a focus on the three areas of recruitment, development and retention. Key trust systems for recruitment have been overhauled and the introduction of Instructional Coaching has been a major investment in resources, not least time.
In setting the objectives, and planning the activities, the trustees have considered the Charity Commission’s general guidance on public benefit and to its supplementary public benefit guidance on advancing education. The key public benefit delivered by The Pennine Trust is the development of high-quality education provided within its schools, to the public benefit of all children local to these schools.
Attendance:
Pupil attendance has improved significantly in two of our schools but remains below desirable levels and national averages in two schools. That said, attendance levels are in line with those for other schools in both phases within the locality, so the trust is pursuing a more community wide approach in 2024-25 to develop a strategy to overcome specific local barriers to increased attendance.
Primary phase academic outcomes:
Headline academic performance indicators are strong in the primary phase for both disadvantaged pupils and their non-disadvantaged peers. Pupils with SEND also make good progress relative to their starting points. The tables below summarise performance for all pupils in each school in Year 6 SATs and the phonics screening test undertaken at the end of year 1.
SATs - Provisional data for 2024
School | Blacko | Laneshaw Bridge | Lord St | National | |||
% pupils at each standard | Expected | Greater depth | Expected | Greater depth | Expected | Greater depth | Expected |
Reading | 100 | 29 | 93 | 46 | 74 | 21 | 74 |
Writing | 93 | 57 | 79 | 11 | 77 | 8 | 72 |
Maths | 93 | 42 | 89 | 21 | 72 | 8 | 73 |
SPAG | 93 | 57 | 93 | 36 | 70 | 20 | 72 |
Combined | 93 | 29 | 79 | 7 | 62 | 3 | 61 |
% of children passing the screening test at the end of year 1
Year | School | National average | ||
Blacko | Laneshaw Bridge | Lord St | ||
2024 | 73 | 87 | 88 |
|
2023 | 100 | 87 | 86 | 79 |
Secondary phase academic outcomes:
The trust continues to provide a curriculum in which relatively high numbers of pupils follow and achieve the English Baccalaureate (EBacc) suite of qualifications. Attainment in 2023-24 in this phase in English and maths was broadly in line with national and county averages.
Performance Indicator | School | National (2023) | Lancashire (2023) |
% pupils entered for EBacc | 64 | 39 | 31 |
% pupils achieving EBacc at grade 4+ | 29 | 24 | 18 |
EBacc average point score | 3.79 | 4.05 | 3.88 |
% achieving English & maths grades 9-4 | 63 | 65 | 64 |
% achieving English & maths grades 9-5 | 43 | 45 | 43 |
Wider curriculum provision:
The trust continues to offer a broad range of enrichment activities both within the school day and outside of school hours, including residential visits in all phases in both Britain and overseas. In 2023-24, pupils in year 6 had residential experiences in London and Paris, whilst all year 9 pupils were able to complete the Duke of Edinburgh Bronze Award. Locally, there was a regular offer of extra-curricular sport, music/performance/art along with other specific subject-related enrichment.
Ofsted Inspections:
In 2023-24, only one of the four trusts schools was inspected. Laneshaw Bridge was graded outstanding in all areas and for overall provision. This means all four schools have been inspected since the start of 2022, with 100% of schools graded good or better.
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.
During the period the trust updated its investment policy to improve investment income. The policy aims to provide sufficient cash for day-to-day operations, whilst taking advantage of opportunities to maximise investment income with minimal risk. Since April 2024, the trust actively manages cash reserves, placing funds on short term deposits using the Insignis Cash Management platform.
The Audit and Risk Committee has an ongoing responsibility for monitoring risks. The trust has an embedded system of internal control, including financial, operational, and risk management which has been designed to safeguard the trust’s assets and reputation.
The trust has identified and documented the major risks it faces within its risk register. Trustees review the risk register termly and are kept up to date between meetings on any emerging risks that are significant. Systems and processes are in place to mitigate those risks identified on the risk register.
The principal risks faced by the trust are:
Pupil recruitment risk
Risk: Recruitment of pupils into reception or year 7 is significantly lower than anticipated resulting in a loss of funding.
Mitigations: The trust is aware of local demographic changes and plans accordingly. The trust supports schools to effectively market to local communities.
Along with those shown under financial risk.
Staff costs risk
Risk: National pay awards for teachers and support staff are significantly higher than anticipated.
Mitigations: The trust is actively involved with national organisations and professional networks to inform planning assumptions. The trust makes use of integrated curriculum and financial planning to inform budget setting and resource allocation.
Defined benefit pension scheme risk
Risk: The trust’s share of any deficit on the Local Government Pension Scheme (LGPS) has been significantly higher than anticipated.
Mitigations: The trust makes monthly cash contributions to the LGPS deficit as determined by the most recent triennial valuation.
The trust does not use any external fundraisers. 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.
As the trust has not consumed more than 40,000 kWh of energy in this reporting period nor is it classed as a large company as determined by sections 465 and 466 of the Companies Act 2006, it is not required to report on its emissions, energy consumption or energy efficiency activities.
The trust identified growth as a key priority for the 2023-24 academic year and sought to establish partnerships with other schools and trusts to enable meaningful collaboration. Strong relationships have been developed with 2 local secondary schools, so that trustees and governors in all establishments have conducted due diligence with a view to formation of a new trust merging all 3 organisations into a new single trust. An application has been submitted to the DfE, though the calling of a July general election in late May 2024, means this application has been held in abeyance since the summer.
In addition to the above, the trust continues to prioritise key aspects of school provision. The following focus areas are applicable to all or several schools within the trust:
Following graduation from the BehaviourHub Programme in April, continue to embed all learning habits, routines and systems related to behaviour.
Embed Instructional Coaching as a vehicle to support bespoke staff development.
Continued focus on raising levels of pupil attendance, particularly for our most disadvantaged pupils.
Specific focus on further development of the writing curriculum in the primary phase.
The trust does not hold any funds as custodian trustee on behalf of others.
Mitchell Charlesworth (Audit) Limited was appointed auditor to the charitable company. A resolution proposing re-appointment 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 The Pennine 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, 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 The Pennine 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 6 times during the year. Attendance during the year at meetings of the board of trustees was as follows:
There are no major changes to the board other than the resignation of S Wilson.
The trust manages conflicts of interest by holding a register of business interests (completed twice annually). Information added onto the register is scrutinised by the Head of Governance, who, if required, verifies company details with those held on Companies House records. Conflicts of interest are a standing agenda item at each meeting and trustees and local committee members are reminded of the need to declare such interests at the relevant points. Should a declaration be made, the governance professional will follow guidance from the trust's governance and accountability handbook to manage such an eventuality.
The trust engaged the Confederation of School Trusts (CST) to undertake an external review of governance. The external review of governance involved a structured and detailed evaluation process to assess the effectiveness of the trust's governance arrangements. The review commended the trust for the commitment and skill of trustees, highlighting the positive culture of openness and willingness among all members to engage in scrutiny and continuous improvement.
The resource committe is a sub-committee of the main board of trustees. Its purpose is to assist the decision making of the board by undertaking monitoring of the impact of teaching and learning strategies within trusts schools.
Attendance at meetings in the year was as follows:
The audit and risk committee is a sub-committee of the main board of trustees. Its purpose is to assist the decision making of the board, by enabling more detailed consideration to be given to the arrangement for regulatory compliance, financial probity and management of risk. The committee directs the internal audit activity and monitors activity plans arising from the audits.
Attendance at meetings in the year was as follows:
As accounting officer, the CEO has responsibility for ensuring that the academy trust delivers good value in the use of public resources. The accounting officer understands that value for money refers to the educational and wider societal outcomes, 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:
Options appraisal
The Trust has clear systems for purchasing, with a hierarchy for purchasing decisions including trustee authorisation. Purchases of goods and services valued at over £5,000 require three quotes, although in practice quotes for goods and services are obtained at much lower values to ensure value for money.
Investment policies
The chief financial officer has introduced a new investment policy to allow the trust to take advantage of opportunities to increase investment income with minimal risk. The trust actively manages its cash balances, to provide sufficient cash for day-to-day operations, and increase income by making short-term deposits.
Integrated Curriculum and Financial Planning (ICFP)
The chief financial officer has refined the trust’s use of ICFP and embedded it into the budget setting process. This allows the trust to actively plan for efficiency in its allocation of staff resources.
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 The Pennine 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 resource committe 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; and
identification and management of risks.
The board of trustees have used a variety of different experts to review distinct parts of the trust's operations. This option was chosen because it allowed the trust to focus on particular areas based on the trust's risk register.
An external review of governance (ERG) was commissioned, undertaken by the Confederation of School Trusts (CST). The reviewers role was to produce a detailed evaluation to assess the effectiveness of the trust's governance arrangements. It comprised:
initial discussion with key governance leaders;
a comprehensive document review;
a self-analysis questionnaire for trustees, key members of the executive team, and all local school committee members;
one-to-one meetings were also conducted with key governance leaders and members of the executive team; and
direct observations of governance meetings, including committees and a full trust board meeting.
The main recommendation was to strengthen the consistency of governance support and challenge across individual schools. While governance at the trust level is strong, efforts should be made to ensure that local school committees (LSCs) are more actively engaging in their roles. This includes providing training and support to LSC members to enhance their ability to offer meaningful scrutiny and challenge. The report was produced on a one-off basis.
The trust also undertook due diligence processes in the year comprising a wide ranging and rigorous examination of the trust’s educational and support operations from which trustees were able to take assurance. This was undertaken by Gail Khan Associates.
Additionally, trustees made risk based directions for ad hoc reviews in specific areas. These included educational visits and trips and a review of the Academy Trust Handbook ‘musts’.
As accounting officer, the CEO 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 trustees/review of governance;
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;
the work of the external auditor; and
correspondence from ESFA, eg financial notice to improve/notice to improve (FNtI/NtI) 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 and risk committee and plans to ensure continuous improvement of the systems are 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 20 December 2024 and signed on its behalf by:
As accounting officer of The Pennine 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 The Pennine 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 20 December 2024 and signed on its behalf by:
Opinion
We have audited the accounts of The Pennine Trust for the year ended 31 August 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the accounts, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice), the Charities SORP 2019 and the Academies Accounts Direction 2023 to 2024 issued by the Education and Skills Funding Agency.
In our opinion the accounts:
give a true and fair view of the state of the charitable company's affairs as at 31 August 2024 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
have been prepared in accordance with the requirements of the Companies Act 2006; and
have been prepared in accordance with the Charities SORP 2019 and the Academies Accounts Direction 2023 to 2024.
Basis for opinion
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 schools' 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 we identified having obtained and reviewed the schools' 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;
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) 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 Academy Trust 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 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 29 April 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 The Pennine 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 The Pennine Trust and ESFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to the The Pennine 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 The Pennine 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 The Pennine Trust’s funding agreement with the Secretary of State for Education dated 30 September 2014 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:
Reviewing the activities to ensure they are in keeping with the charitable objectives and framework.
Reviewing declarations of interest and seeking further representations.
Reviewing the control environment and considering potential weaknesses.
Reviewing minutes of various committees, management accounts and holding discussions with key personnel.
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 24 to 50 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 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.
Assets costing £1,000 (IT Equipment £500) 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.
Assets in the course of construction are included at cost. Depreciation on these assets is not charged until they are brought into use and reclassified to freehold or leasehold land and buildings.
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:
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.
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.
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.
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.
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 20, 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 trust has provided the following central services to its academies during the year:
Financial Services
Human Resources
Facilities & Estates
ICT Support
Governance
Mandarin Teaching
Business Support
The academy trust charges for these services based on 7.5% of their GAG and the Teachers Pay grant and the Mainstream Schools Additional Grant. In addition, a number of licences previously budgeted in each school are now procured and charged centrally and included within the charge.
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 £703,387 (2023: £741,405).
No trustees have been paid remuneration or received other benefit from employment with the trust. The CEO has not been appointed to the Board of Trustees as permitted in the articles.
The trust has opted into the Department for Education's risk protection arrangement (RPA), an alternative to insurance where UK government funds cover losses that arise. The scheme protects trustees and officers from claim arising from negligent acts, errors and omissions occurring whilst on academy business. The insurance provides cover up to £10,000,000 on any one claim, it is not possible to quantify the trustees and officers indemnity element from the overall costs of the RPA scheme.
Loans of £115,247 from Salix and CIF which is provided on the basis of 8 year repayments with CIF interest rate of 2.3% and Salix being 0%
At the balance sheet date the academy trust was holding funds of £63,000 in relation to deferred income.
The breakdown of these funds consist of:
£13,000 received in advance for rates relief payments from the ESFA.
£50,000 received in advance for UIFSM from the ESFA.
The specific purposes for which the funds are to be applied are as follows:
Unrestricted reserves, which include income funds, grants and donations, will be spent at the discretion of the board of trustees in furtherance of the trust's objectives.
Restricted reserves, which may include restricted income funds, grants or donations, will be spent or invested in furtherance of the trust's objectives or assets, or spent where the donor has expressed the nature of expenditure.
Restricted reserves may be endowment funds, where the funds or assets are required to be invested or retained for actual use, rather than spent.
The trust will hold a minimum reserve of 6% and a maximum reserve of 12% of the General Annual Grant (GAG) income.
As one organisation, the trust pools its reserves and all funds are retained centrally. All funds will be applied to education and the support of education for trust students in line with the trust's charitable objectives.
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 Lancashire County 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 £197,409 were payable to the schemes at 31 August 2024 (2023: £164,856).
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 £1,169,840 (2023: £1,022,581).
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 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 19.3% for employers and 5.5 to 12.5% for employees.
Parliament has agreed, at the request of the Secretary of State for Education, to a guarantee that, in the event of academy closure, outstanding Local Government Pension Scheme liabilities would be met by the Department for Education. The guarantee came into force on 18 July 2013 and on 21 July 2022, the Department for Education reaffirmed its commitment to the guarantee, with a parliamentary minute published on GOV.UK.
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. The following related party transactions took place in the financial period.
W W Enterprises - a company owned by Mr P White (a trustee):
The academy trust purchased gritting services from W W Enterprises totalling £nil (2023: £1,805) during the period. There were no amounts outstanding at 31st August 2024 (2023: £nil).
The academy trust made the purchase at arms' length after receiving quotes from other companies in accordance with its financial regulations, which Mr White neither participated in, nor influenced.
In entering into the transaction, the academy trust has complied with the requirements of the Academy Trust Handbook.
All transactions involving such organisations are conducted in accordance with the requirements of the Academy Trust Handbook, including notifying the ESFA of all transactions made on or after 1st April 2019 and obtaining their approval where required, and with the academy trust's financial regulations and normal procurement procedures relation to connected and related party transactions.
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.