The trustees present their annual report together with the accounts and auditor's report of the charitable company for the year 1 September 2024 to 31 August 2025. The annual report serves the purposes of both a trustees' report, and a directors' report and strategic report under company law.
Summary of Abbey Academies Trust Report:
Abbey Academies Trust is committed to improving educational achievement and providing a nurturing, inclusive environment while fostering community cohesion. The Trust’s strategic plans for 2024/25 focussed on enhancing early years provision, raising standards in core subjects, enriching the curriculum with cultural capital and sustainability, supporting mental health and wellbeing, and developing leadership and governance.
Key priorities included:
Meeting mental health and wellbeing needs across all stages.
Developing vocabulary, cultural awareness, and early reading skills in EYFS.
Strengthening curriculum delivery, particularly in English, maths, ICT, oracy, and writing.
Embedding sustainability initiatives.
Supporting SEND pupils effectively and reviewing SATs preparation.
Reinforcing fundamental British values alongside Christian ethos and UNICEF Rights Respecting goals.
Ensuring leadership drives high expectations, clear curriculum intent, and staff wellbeing.
Governance is supportive and offers challenge, with the Chief Executive Officer (CEO) accountable for delivering value for money by targeting resources effectively, optimising staffing, monitoring performance, and ensuring financial oversight. Purchasing, contracts, and estate management are managed to maximize efficiency and compliance.
Overall, the Trust continues to be effective, and supports continuous improvement in educational outcomes and operational efficiency.
The 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 trust.
The trustees of Abbey Academies 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.
From the articles to provide indemnity insurance to cover the liability of governors which by virtue of any rule of law should otherwise attach to them in respect of any negligence, breach of trust or breach of duty of which they may be guilty in relation to the academy trust. Provided that any such insurance shall not extend to any claim arising from any act or omission, which the trustees knew to be in breach of trust or breach of duty, and provided also that any such insurance shall not extend to costs of any unsuccessful defence to a criminal prosecution against the trustees in their capacity as trustees.
Subject to Articles 48 - 49 and 64, the academy trust shall have the following trustees:
a. Not less than 9 trustees, appointed under Article 50
b. Up to 2 Staff Governors, if appointed under Article 50A
c. 2 Parent Governors appointed under Articles 53-58. A Parent Governor must be a parent of the pupil at the Academy at the time when he is elected;
d. The Principal;
e. Any Additional Governors, if appointed under Article 62, 62A or 68A; and
f. Any Further Governors, if appointed under Article 63 or Article 68A.
The Academy Trust may also have any Co-opted Governor appointed under Article 59.
The term of office for any Governor (other than Co-opted Governors under Article 59) shall be 4 years, save that this time limit shall not apply to the Principal, the Diocesan Bishop, the Incumbent, the Area Dean. Subject to remaining eligible to be a particular type of Governor, any Governor may be re-appointed or re-elected.
A Local Governing Board (LGB) for each individual school is in place to undertake the day to day running of each school in line with the agreed Scheme of Delegation.
The training and induction provided for new trustees depends on their existing experience. Where necessary induction provides training on charity and educational legal and financial matters. All trustees and governors are provided with copies of terms of reference, policies, procedures, minutes, accounts, budgets, plans and other documents that they will need to undertake their role as trustees and governors.
The organisational structure of the trust consists of four levels: The members, trustees, governors and the senior leadership team. The aim of the organisational structure is to devolve responsibility and encourage involvement in decision making at all levels.
The trust is governed by the board of trustees which delegates functions as appropriate to the local governing body of each academy.
The trustees are responsible for all areas covered under the funding agreements and all areas of statutory responsibility appertaining to the trust which include setting general policy, adopting an annual improvement plan for both academies and budget for the trust, monitoring the academies by the use of budgets and making major decisions about the direction of the academy trust, capital expenditure and senior staff appointments.
The governors of each academy are responsible for monitoring the performance of their academy, focusing on academic standards and leadership. This includes regular scrutiny and challenge of the Executive Headteacher and senior leadership team. The Chief Financial Officer is the lead officer responsible for finance and reports to the local governing body on financial performance against delegated budget levels.
The Executive Headteacher and senior leadership team at each academy are responsible at an executive level for implementing the policies as agreed by the trustees and any local operating procedures as approved by the local governing bodies. As a group the senior leaders are responsible for the authorisation of spending within agreed budgets and the appointment of staff.
The policy for teacher’s pay sets out the framework for making decisions on teachers’ pay. It has been developed to comply with current legislation and the requirements of the School Teachers’ Pay and Conditions Document (STPCD) and has been consulted on with staff.
The policy for support staff pay sets out the framework for making decisions on support staff pay. It has been developed to comply with current legislation and has been consulted on with staff.
In adopting these pay policies the aim is to:
maintain the quality of teaching and learning at each academy.
support the academy improvement plans.
underpin the trust’s appraisal policy.
ensure that all staff are valued and appropriately rewarded for their work contribution in the trust.
ensure staff are well motivated, supported by positive recruitment and retention policies and staff development.
demonstrate that decisions on pay are fair and equitable and recognise the principle of equal pay for like work and work of equal value.
provide flexibility to recognise individual staff performance linked to pay decisions.
Pay decisions at the trust are made by the Finance, Pay & Audit Committee in consultation with the Chief Executive Officer.
Transactions with related parties are detailed in note 28.
Abbey Academies Trust continues to provide quality education for pupils aged 2 to 11 years across its three academies: Bourne Abbey Church of England Primary Academy, Bourne Elsea Park Church of England Primary Academy, and Colsterworth Church of England Primary School.
The Trust remains committed to supporting local school improvement agenda through its partnership model, with all three schools working together. The CEO has responsibility for the Trust, with the individual Heads of School managing the day-to-day operations, maintaining each academy’s distinctive ethos while fostering a strong shared identity.
As Church of England schools, the Trust encourages pupils to strive for academic excellence alongside the development of faith, spirituality, hope, charity, and informed citizenship.
Main Objectives for 2024–2025 included:
Ensuring every pupil received consistently high-quality education tailored to their needs.
Continuing to raise educational achievement and attainment across all academies.
Reviewing and improving curriculum and organisational structures regularly.
Providing value for money in all expenditure.
Complying fully with safeguarding and statutory curriculum requirements.
Maintaining strong links with local communities and other schools.
Sharing good practice and contribute to teacher training.
Conducting Trust business with integrity, openness, and transparency.
The Trust’s mission “Striving for Excellence – Caring for All within a loving and caring Christian environment”, guides all strategies, including:
Identifying pupil abilities and preferred learning styles to tailor teaching strategies.
Delivering a broad, balanced curriculum enriched with extracurricular opportunities.
Providing a comprehensive Personal, Social and Health Education (PSHE) programme.
Ensuring robust safeguarding procedures are maintained and regularly reviewed.
The trustees have complied with their duty to have due regard to the guidance on public benefit issued by the Charity Commission in exercising their powers and duties.
Despite ongoing challenges, including some leadership transitions, Abbey Academies Trust has maintained strong educational outcomes and operational stability.
Leadership and Staffing:
New leadership roles have been further embedded to strengthen succession planning and support ongoing school improvement. Interim SENCO arrangements ensured SEND provision remained high quality.
Academic Outcomes:
Assessment data for EYFS, phonics, Year 4 Multiplication Check, and KS1/KS2 SATs met national average expectations, with writing outcomes continue to be a strong area.
Pupil Premium and Vulnerable Groups:
Provision mapping and targeted interventions remains a priority, with attendance and pastoral support closely monitored.
Community and Reputation:
With all schools being judged to be Good in their most recent Ofsted inspections, pupil numbers have remained strong.
Curriculum Development:
The Trust’s curriculum remains broad and engaging, with developments mental health and well-being initiatives, and character education policies reinforcing holistic pupil development.
Safeguarding and Compliance:
Regular reviews confirm the Trust’s strong commitment to safeguarding across all schools.
Staff Development:
Comprehensive staff training, including Read, Write, Inc training and specialist leadership programs, continue to enhance teaching quality.
Sustainability and Recognition:
All schools maintain their Eco School Green Flag status, with continued achievement in UNICEF Rights Respecting Schools awards.
Key Highlights include:
Maths Mastery:
Trust-wide implementation has driven significant improvement in maths results.
Christian Distinctiveness:
The Trust’s Christian vision continues to remain the central priority of the Trust, positively influencing curriculum, policies, and school culture, preparing pupils morally and spiritually.
Pupil Opportunities:
Participation in extra-curricular activities, trips, visits and national events showcase the Trust’s commitment to enriching pupil experiences.
The Trust has ended the year with a cumulative deficit of £267k. Following an SRMA visit, change of leadership and discussions with the DfE, the trust is developing a financial plan which will recover the deficit within two academic years. The trustees therefore have a reasonable expectation that the trust has adequate resources to continue in operational existence for the foreseeable future.
The academy trust held fund balances at 31 August 2025 of £6,966,708 comprising £6,966,708 of restricted funds and £Nil of unrestricted funds. Of the restricted funds, £7,234,038 is represented by tangible fixed assets
Key performance Indicators
The trust keeps a regular overview of its finances and details reports to trustees and governors..
The trustees and governors regularly monitor, review and approve budget statements and plans. Trustees' and governors' advice and approval is always sought for major financial commitments.
Key budget allocations and spending decisions are all linked to the Academy Improvement Plan. However, if a new initiative that will improve the academy becomes available, it will be reviewed by all members of the school community, including the financial implications and either approved or not. The trustees have the final approval. The unrestricted funds can be used to offset the financial implications of an initiative and funds raised by the PTFA can also be allocated.
The trustees review the reserves level of the trust annually. The review takes into account the nature of the income and expenditure streams. The trustees have determined that the appropriate level of reserves is £200,000 at trust level and the equivalent of one month’s operating expenditure for each academy. The trust is currently in cumulative deficit, so is working towards reaching the reserves target over the next three-year budget cycle.
Under the Memorandum and Articles of Association, the trust has the power to invest funds not immediately required for its own purposes, in any way the trustees see fit. There are currently no additional funds to invest.
The trustees are responsible for identifying risks faced by the trust, establishing procedures to mitigate these risks, and ensuring that employees are aware of the procedures and of the implications of failing to implement them. They are satisfied that these procedures are consistent with the guidelines issued by the Charity Commission
The key risks for the trust are:
Financial position
Maintaining strong leadership
Impact of changes on educational standards
Pressure on pupil numbers in line with the national trends.
The Student Council vote on and organise fundraising events during the year. The trust does not use professional fundraisers or involve commercial participants. There have been no complaints about fundraising activity this year.
Abbey Academies Trust continue to strive to improve levels of achievement and attainment for all its pupils while providing a high-quality, caring, and nurturing educational environment. The Trust remains committed to fostering community cohesion.
For the academic year 2025/26, the trust aims to further enhance the educational experience by focusing on the following areas:
Early Years Foundation Stage:
To continue supporting children’s mental health and wellbeing needs.
Ensure identification and support for vulnerable groups and children exceeding their age/stage of development, focusing on vocabulary growth and cultural capital development.
Maintain regular monitoring of EYFS provision to ensure progression in knowledge, skills, and spiritual opportunities.
Further develop and expand outdoor learning provisions across the EYFS setting.
Enhance early reading and phonics provision, including targeted CPD and rigorous monitoring to raise standards.
Quality of Education:
Introduce a wider range of targeted interventions to ensure all children can ‘be the best they can’.
Prioritise raising standards in oracy, positively impacting wider learning outcomes.
Ensure the curriculum supports acquisition of core skills in English, mathematics, and IT, tailored to meet diverse learner needs.
Enrich the curriculum further with broad subjects that promote cultural capital, aligned with the Trust’s vision and curriculum model.
Plan and embed greater opportunities for spirituality throughout the curriculum.
Enhance curriculum design to support children in ‘knowing more and remembering more’.
Continue to refine the writing curriculum to improve outcomes.
Monitor and support SEND provision, regularly reviewing impact and gathering feedback from pupils and parents/carers.
Review and optimise Year 6 SATs preparation to ensure all pupils achieve aspirational targets.
Raise standards through the development of IT provision.
Personal Development, Behaviour and Attitudes:
Continue to address children’s mental health and wellbeing, expanding the role of Mental Health and Wellbeing First Aiders.
Provide regular opportunities for pupils to engage with ‘big questions’ to nurture spiritual and moral development.
Embed further knowledge of Understanding Christianity and extend pupils’ understanding of other faiths within Religious Education.
Ensure the PSHE curriculum enables pupils to understand and articulate diversity and Protected Characteristics.
Maintain and develop the Trust’s UNICEF Rights Respecting Schools Gold Award status.
Reinforce Fundamental British Values, alongside Christian Values and ethos.
Leadership and Management:
Continue to provide strong leadership that motivates staff, communicates a clear vision, and commits to raising standards.
Develop subject leaders’ skills to maximise impact on learning and teaching.
Maintain compliance with the Prevent Duty, to safeguard pupils from abuse, exploitation, radicalisation, and extremism.
Empower subject leaders to evaluate and lead subject development with clear knowledge and skills progression.
Prioritise staff wellbeing and work-life balance.
Enhance communication with parents and carers, particularly for those with SEND pupils, to ensure effective partnership and support.
These plans will be regularly monitored throughout the year to ensure continued progress and success across the Trust.
The trust and its trustees do not act as the custodian trustees of any charity.
A resolution proposing that Azets Audit Services be reappointed as auditor of the charitable company will be put to the members.
The trustees' report, incorporating a strategic report, was approved by order of the board of trustees, as the company directors, on
As trustees, we acknowledge we have overall responsibility for ensuring that Abbey Academies 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.
The board of trustees has delegated the day-to-day responsibility to the Chief Executive Officer and 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 Abbey Academies 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 5 times during the year. Attendance during the year at meetings of the board of trustees was as follows:
All Members, Trustees, Governors and staff with purchasing authority are required to declare their interests annually by completing the Register of Business Interests pro forma. The original is held by the Clerk on behalf of the Trust.
To be effective, the declaration of interests form needs to be updated at least annually, and also when any changes occur.
Members, Trustees, Governors and staff of Abbey Academies Trust are advised that if they are not sure what to declare, or whether/when any declaration needs to be updated, they should err on the side of caution. The Chair of the Board of Trustees will provide advice and it is their responsibility to ensure that professional advice (i.e. from the auditors) is sought where necessary.
At each meeting, the Clerk will ask for any conflicts of interest to be declared. Interested board members may not vote on matters affecting their own interests and they must absent themselves from the discussion and the decision-making process.
As Accounting Officer, the Chief Executive Officer is responsible for ensuring that Abbey Academies Trust delivers good value in the use of public resources.
The Accounting Officer considers how the trust’s use of resources has provided value for money during each academic year and reports to the Board of Trustees where improvements can be made, including:
Improving Educational Results:
Targeting resources strategically in key subjects such as English and Mathematics.
Monitoring and responding to the needs of specific pupil groups, including those eligible for Pupil Premium and Looked After Children grants, ensuring tailored and effective support.
Staffing:
Maintaining a carefully structured staffing establishment, regularly reviewing opportunities to minimise excess staffing as it is the largest expenditure.
Monitoring staff performance and taking appropriate actions to address areas of weakness.
Delivering an extensive CPD training programme focused on enhancing teaching and learning across the curriculum.
Financial Governance and Oversight:
Conducting monthly financial monitoring, with regular meetings of the Local Governing Bodies and the Board of Trustees. These bodies receive comprehensive reports and challenge spending decisions effectively.
Supplementing financial oversight with regular internal audit reports.
Better Purchasing:
Embed new systems for purchasing options, including online and direct supplier engagements, to secure the best value.
Implementing tender processes for significant purchases and contracts.
Reviewing all contracts annually to ensure continued fitness for purpose and best value.
Estates Management:
Applying the trust’s procurement policy rigorously when contracting estate works to ensure value for money.
The system of internal control aims to manage risk to a reasonable level, rather than eliminate all risk of failure to achieve the trust’s policies, aims, and objectives. It provides reasonable, not absolute, assurance of effectiveness.
This system involves identifying and prioritising risks, evaluating their likelihood and impact, and managing them efficiently, effectively, and economically.
The Board of Trustees continues to review the key risks facing the trust and the controls in place to mitigate them.
The trust’s system of internal control includes:
Budgeting and monitoring systems, with an annual budget and periodic financial reports reviewed and approved by the Board.
Review by the Finance, Pay and Audit Committee of financial performance, major purchase plans, capital works, and expenditure programmes.
Setting financial and performance targets.
Defined purchasing guidelines for asset purchases and capital investments.
Identification and management of risks.
The Board has commissioned an internal audit service from Day’s Accountancy Services, who provided scrutiny and advice on finance and governance. The review covered:
Management letter responses and actions
Income and expenditure testing
Payroll processes
Bank accounts and Investments
Balance sheet reconciliation
Governance
Policies and compliance
The internal auditor provided a report to the Board through the Audit Committee, with a summary of findings, recommendations, and conclusions to support continuous improvement.
In addition, the Board commissioned an investigation into some specific concerns raised to ensure that systems and controls can be further improved where appropriate.
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 auditor;
the work of the external auditor;
the work of the executive managers within the trust who have day to day responsibility for the development and maintenance of the internal control framework.
The accounting officer has been advised of the implications of the result of their review of the system of internal control by the Finance, Pay and Audit committee and a plan to address weaknesses and 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 trust has an adequate and effective framework for governance, risk management and control.
Approved by order of the board of trustees on 10 November 2025 and signed on its behalf by:
As accounting officer of Abbey Academies Trust, I have considered my responsibility to notify the trust board of trustees and the Department for Education (DfE) of material irregularity, impropriety and noncompliance with terms and conditions of all funding, including for estates safety and management, under the funding agreement in place between the 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 2024, including responsibilities for estates safety and management.
I confirm that I and the trust's board of trustees are able to identify any material irregular or improper use of funds by the trust, or material non-compliance with the terms and conditions of funding under the trust's funding agreement and the Academy Trust Handbook 2024.
I confirm that no proven instances of material irregularity, impropriety or funding non-compliance have been discovered to date. Following the end of the year, a number of potential weaknesses in regularity were identified and have been reported to the DfE.
The trustees (who are also the directors of Abbey Academies Trust for the purposes of company law) are responsible for preparing the trustees' report and the accounts in accordance with the Academies Accounts Direction 2024 to 2025 published by the Department for Education, 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 2024 to 2025;
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 the 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 10 November 2025 and signed on its behalf by:
Opinion
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 'Auditor's responsibilities for the audit of the accounts' section of our report. We are independent of the trust in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Material uncertainty relating to going concern
We draw your attention to note 1.2 in the financial statements, which indicates that a significant deficit has been incurred during the year, resulting in an overall deficit on available reserves. These conditions indicate that a material uncertainty exists that may cast significant doubt on the academy's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
Other information
The other information comprises the information included in the annual report other than the accounts and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the accounts does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the accounts themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
the information given in the trustees' report including the incorporated strategic report for the financial year for which the accounts are prepared is consistent with the accounts; and
the trustees' report including the incorporated strategic report has been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the 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 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.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of senior leadership, Trustees and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations including compliance with the Academies Accounts Direction 2024 to 2025 issued by the Department for Education;
Performing audit work over the recognition of grant income and the allocation of expenditure to funds;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
In accordance with the terms of our engagement letter dated 17 September 2025 and further to the requirements of the Department for Education (DfE) as included in the Academies Accounts Direction 2024 to 2025, we have carried out an engagement to obtain limited assurance about whether the expenditure disbursed and income received by Abbey Academies Trust during the period 1 September 2024 to 31 August 2025 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 Abbey Academies Trust and DfE in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to the Abbey Academies Trust and DfE 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 Abbey Academies Trust and DfE, for our work, for this report, or for the conclusion we have formed.
The accounting officer is responsible, under the requirements of Abbey Academies Trust’s funding agreement with the Secretary of State for Education dated 30 November 2010 and the Academy Trust Handbook, extant from 1 September 2024, 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 2024 to 2025. 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 2024 to 31 August 2025 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 DfE. 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 trust's income and expenditure.
The work undertaken to draw to our conclusion includes:
a review of the activities of the academy, by reference to sources of income and other information available to us;
sample testing of expenditure, including payroll;
a review of minutes of Trustees’ meetings.
In the course of our work, subject to the matter noted below, nothing has come to our attention which suggests that in all material respects the expenditure disbursed and income received during the period 1 September 2024 to 31 August 2025 has not been applied to purposes intended by Parliament and the financial transactions do not conform to the authorities which govern them.
Following the end of the year a number of potential weaknesses in regularity were identified and have been reported to the DfE.
The accounts on pages 21 to 46 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 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 2024 to 2025 issued by DfE, the Charities Act 2011 and the Companies Act 2006.
The trustees assess whether the use of going concern is appropriate, i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charitable company to continue as a going concern. 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.
Due to increased costs and unfunded salary increases, the Trust incurred a significant deficit in the year resulting in available funds being in deficit at the end of the year. The trustees and senior management team have been working closely during the year and have implemented a number of savings during the 2024-25 academic year. Further savings are planned for the 2025/26 academic year and the trustees believe that an in-year surplus will be achieved with the intention of returning to a cumulative surplus position by August 2027. Due to the progress made, the DfE have agreed to support the Trust with repayable deficit funding of £71,000 which will be made available in November 2025.
On that basis the trustees continue to adopt the going concern basis of accounting in preparing the accounts.
All income is recognised when the trust has entitlement to the funds, the receipt is probable and the amount can be measured reliably.
Grants are included in the statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the balance sheet. Where income is received in advance of meeting any performance-related conditions there is not unconditional entitlement to the income and its recognition is deferred and included in creditors as deferred income until the performance-related conditions are met. Where entitlement occurs before income is received, the income is accrued.
General Annual Grant is recognised in full in the statement of financial activities in the period for which it is receivable, and any abatement in respect of the period is deducted from income and recognised as a liability.
Capital grants are recognised in full when there is an unconditional entitlement to the grant. Unspent amounts of capital grants are reflected in the balance sheet in the restricted fixed asset fund. Capital grants are recognised when there is entitlement and are not deferred over the life of the asset on which they are expended.
Donations are recognised on a receivable basis (where there are no performance-related conditions) where the receipt is probable and the amount can be reliably measured.
Other income, including the hire of facilities, is recognised in the period it is receivable and to the extent the trust has provided the goods or services.
The value of donated services and gifts in kind provided to the trust are recognised at their open market value in the period in which they are receivable as income, where the benefit to the trust can be reliably measured. An equivalent amount is included as expenditure under the relevant heading in the statement of financial activities, except where the gift in kind was a fixed asset in which case the amount is included in the appropriate fixed asset category and depreciated over the useful economic life in accordance with the trust's policies. The value of donated time from volunteers has not been included in these accounts.
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 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 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 trust's educational operations, including support costs and costs relating to the governance of the trust apportioned to charitable activities.
These include the costs attributable to the trust's compliance with constitutional and statutory requirements, including audit, strategic management, trustees' meetings and reimbursed expenses.
Assets costing £10,000 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. 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 such assets is charged to the restricted fixed asset fund in the statement of financial activities so as to reduce the fund over the useful economic life of the related asset on a basis consistent with the trust's depreciation policy. Where tangible fixed assets have been acquired with unrestricted funds, depreciation on such assets is charged to the unrestricted fund.
Furniture and equipment transferred into the academy from the previous local authority school has not been valued and introduced into these accounts.
Leasehold property inherited from the Local Authority on conversion to an academy was professionally valued on a depreciated replacement cost basis at 31 August 2012, commissioned by the DfE.
Leasehold property provided to the trust immediately on completion of the building being constructed is included at a value equivalent to the cost of the building.
Leasehold property inherited from the Local Authority on conversion to an academy during the year has been valued by the trustees using an average square footage calculation.
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 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 trust only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the 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 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 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 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 trust.
The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees' working lives with the 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 on the basis of quadrennial valuations using a projected unit 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 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 trust at the discretion of the trustees.
Restricted fixed asset funds are resources which are to be applied to specific capital purposes imposed by the funders where the asset acquired or created is held for a specific purpose.
Restricted general funds comprise all other restricted funds received and include grants from the Department for Education.
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 trust makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
The present value of the Local Government Pension Scheme defined benefit liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost or income for pensions include the discount rate. Any changes in these assumptions, which are disclosed in note 25, will impact the carrying amount of the pension liability. Furthermore, a roll forward approach which projects results from the latest full actuarial valuation performed at 31 March 2022 has been used by the actuary in valuing the pensions liability at 31 August 2025. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of the pension liability.
Included in agency staff costs above is £12,250 relating to off-payroll arrangements for a Chief Finance Officer that was not a direct employee of the trust. Approval was granted by the DfE until 31 August 2025 but they actually became an employee on 1 July 2025.
The trust paid 3 severance payments in the year, disclosed in the following bands:
The key management personnel of the trust comprise the senior management team as listed on page 1. This year this represents 4 employees (2024 - 3 employees). 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 trust was £372,480 (2024 - £370,423).
No central services were provided by the trust to its academies during the year and no central charges arose.
One or more trustees has been paid remuneration or has received other benefits from an employment with the trust. The Executive Headteacher and other staff trustees only receive remuneration in respect of services they provide undertaking the roles of Executive Headteacher and staff members under their contracts of employment, and not in respect of their services as trustees. Other trustees did not receive any payments, other than expenses, from the trust in respect of their role as trustees.
The value of trustees' remuneration and other benefits was as follows:
Mrs S J Moore (Executive Head Teacher)
Salary and benefits £175,000 - £180,000 (2024 - £145,000 - £150,000)
Employer’s pension contributions £40,000 - £45,000 (2024 - £30,000 - £35,000)
During the year, expenses totalling £1,939 (2024: £2,186) were reimbursed or paid directly to one (2024: one) trustee.
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. This scheme protects trustees and officers from claims arising from negligent acts, errors or omissions occurring whilst on trust business, and provides cover up to £10,000,000. It is not possible to quantify the trustees and officers indemnity element from the overall cost of the RPA scheme.
Leasehold property comprises three properties, two of which are held on licence to use and the other on a 125 year lease, two with Lincolnshire County Council and one with Lincoln Diocesan Board of Education.
Deferred income relates to amounts paid in advance for the 2025/26 school year for kids club places, school trip deposits, universal infant free school meals and rates relief.
The specific purposes for which the funds are to be applied are as follows:
Restricted fixed asset funds
The devolved capital formula grant has to be spent on capital expenditure within 3 years of allocation.
The capital expenditure fund represents the net book value of fixed assets purchased.
The leasehold property represents the net book value of the leasehold property.
Restricted general funds
The restricted grant income in the year all relates to the provision of education for the children of the academy.
Under the funding agreement with the Secretary of State, the trust was not subject to a limit on the amount of GAG that it could carry forward at 31 August 2025.
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.
Designated funds
The school fund balances are designated by the trustees for use in a variety of different areas.
Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up while he or she is a member, or within one year after he or she ceases to be a member, such amount as may be required, not exceeding £10 for the debts and liabilities contracted before he or she ceases to be a member.
The 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 Lincolnshire County Council. 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 £126,483 (2024 - £114,882) were payable to the schemes at 31 August 2025 and are included within creditors.
The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pension Scheme Regulations 2014. Membership is automatic for teachers in academy trusts. All teachers have the option to opt out of the TPS following enrolment.
The TPS is an unfunded scheme to which both the member and employer makes contributions, as a percentage of salary. These contributions are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.
The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to ensure scheme costs are recognised and managed appropriately and the review specifies the level of future contributions.
Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2020. The valuation report was published by the Department for Education on 27 October 2023, with the SCAPE rate, set by HMT, applying a notional investment return based on 1.7% above the rate of CPI. The key elements of the valuation outcome are:
Employer contribution rates set at 28.68% of pensionable pay (including a 0.08% administration levy). This is an increase of 5% in employer contributions and the cost control result is such that no change in member benefits is needed.
Total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service to the effective date of £262,000 million and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £222,200 million, giving a notional past service deficit of £39,800 million.
The result of this valuation will be implemented from 1 April 2024.The next valuation result is due to be implemented from 1 April 2028.
The employer's pension costs paid to the TPS in the period amounted to £507,652 (2024: £491,406).
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 trust is unable to identify its share of the underlying assets and liabilities of the plan. Accordingly, the 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 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 24.1% for employers and 5.5-12.5% 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 actuarial valuation prepared under FRS102 in respect of the Local Government Pension Scheme indicated that the Trust’s share of the scheme was in surplus as at the year end to the value of £2,345,000 (2024: £970,000). The actuaries have undertaken an asset ceiling calculation which, on the basis that a minimum funding requirement does exist, indicates that none of that surplus is likely to result in either a refund of contributions or a reduction in future contributions in the future.
Owing to the nature of the trust's operations and the composition of the board of trustees being drawn from local public and private sector organisations, transactions may take place with organisations in which the trust has an interest. All transactions involving such organisations are conducted at arm's length and in accordance with the trust's financial regulations and normal procurement procedures.
Some of the trustees have children who are pupils at the academy, consequently there will be transactions between those trustees and the academy in respect of their children’s education. These are on the same basis as other pupils at the academy.