(A company Iimited by guarantee) - cscpprod.blob.core ... · Mr R Robeds,Chalr of Flnance Commlttee...

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Registered num ber: Q7659187

BOURNE RM ACADEMY LTD

(A company Iimited by guarantee)

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2014



CONTENTS

Page

Reference and administrative details of the academy, its governoo and adviseo 1

Governors. repod 2 - 9

Governance statement 10 - 12

Statement on regularity, propriety and compliance 13

Governoo' responsibilities statement 14

Independent auditors. report 15 - 16

Independent repoding accountant's assurance report on regularity 17 - 18

Statem ent of financial activities 19 - 20

Balance sheet 21

Cash flow statement 22

Notes to the financial statements 23 - 46

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(A company limited by guarantee)

CONTENTS

Page

Reference and adm inistrative details of the academy, its governors and adviseo 1

Governoo' repod 2 - 9

Governance statement 10 - 12

Statement on regularity, propriety and compliance 13

Governoo' responsibilities statement 14

Independent auditors' repod 15 - 16

Independent repoding accountant's assurance report on regularity 17 - 18

Statement of financial activities 19 - 20

Balance sheet 21

Cash flow statem ent 22

Notes to the financial statements 23 - 46

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REFERENCE AND ADMINISTRATIVE DETAILS OF THE ACADEMY, lTS GOVERNORS AND ADVISERSFOR THE YEAR ENDED 31 AUGUST 2014

MembeO

Mr R Moor ,e Chalr of Governors (reslgned 16 September 2014)Mr R Robeds, Chalr of Flnance CommltteeMr L Rellly, Head Teacher

Trustees

Mr P BryanMrs L DrayMrs E Dllley, Staff GovernorCllr C Farquharson # (reslgned 26 July 2014)Mr S HalghMr W HawklnsMrs S Jackson, Staff GovernorMrs A Jones (reslgned 17 October 2013)Mr J Klrkman #M r D PlckerlngM rs H PowellMrs K Roche, Staff GovernorCllr S W oolleyMrs C W ookey #

# Members of the Audlt Commlttee

Com pany registered number

07559187

Principal and registered office

Bourne Academy, Edlnburgh Crescent, Bourne, Llncs, PEIO 9DT

Senior Leadeohip Team

Mr L Rellly, HeadteacherMrs L Conley, Deputy HeadteacherMrs R Le Caplaln, Asslstant HeadteacherMr J Hlnd, Asslstant HeadteacherMr T Martln, Asslstant Headteacher

lndependent auditors

Streets Audlt LLP, W lndsor House, A1 Buslness Park at Long Bennlngton, Notts, NG23 5JR

Bankers

Lloyds TSB, 8 Nodh Street, Bourne, Llncs, PEIO 9ED

Internal Auditor

A C Cushmg FCCA, 26 Nodh Road, Bourne, Llncs, PEIO 9AP

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GOVERNORS' REPORTFOR THE YEAR ENDED 31 AUGUST 2014

The Governors (who are also dlrectors of the charlty for the purposes of the Companles Act) present thelrannual repod together wlth the audlted flnanclal statements of Bourne RM Academy Ltd (the Academy) for theperlod 1 September 2013 to 31 August 2014.The annual repod serves the purpose of both a trustee's repod,and a dlrectors' repod under company law. The Governors conflrm that the Annuaà report and financlalstatements of the Academy comply wlth the current statutory requlrements, the regulrements of the Academy'sgovernlng document and the provlslons of the Statement of Recommended Practlce (SORP) ''Accountlng andRepodlng by Charltles'' Issued In March 2005.

The trust operates an academy for puplls aged 11 to 18 sexlng a catchment area of Llncolnshlre lt has a pupllcapaclty of 1,225 and had a roll of 1,254 In the school census of October 2014.

STRUCTURE.GOVERNANCE AND MANAGEMENT

CONSTITUTION

The Academy Trust ls a company Ilmlted by guarantee wlth no share capltal and an exempt charlty The trustwas lncorporated on 10 March 2011, In the name of Bourne RM Academy Ltd The charltable company'smemorandum and adlcles of assoclatlon are the prlmary governlng documents of the Academy Trust.

The governors act as the trustees for the chantable actlvltles of Bourne RM Academy Ltd and are also thedlrectors of the charltable company for the purposes of company law.

Detalls of the governors who served throughout the year are Included ln the Reference and AdmlnlstratlveDetalls on page 1 .

The Trust Is responslble for provldlng educatlon to students aged 11-19. Thîs Includes establlshlng, malntalnlng,carrylng on, managlng and developlng a school offerlng a broad and balanced currlculum

MEMBERS' LIABILITY

Each member of the charltable company undedakes to contrlbute to the assets of the charltable company ln theevent of It belng wound up whlle they are a member, or wlthln one year aqer they cease to be a member, suchamount as may be requlred, not exceedlng E10, for the debts and llabllitles contracted before they ceased to bea member

METHOD OF RECRUITMENT AND APPOINTMENT OR ELECTION OF GOVERNORS

The adlcles of assoclatlon requlre the members of the charltable company to appolnt at least three governors tobe responslble for the statutory and constltutlonal affalrs of the charltable company and the management of the

Academy.

The arbcles of assoclatlon requlre that the Members of the Academy Trust shall comprltea) the slgnatones to the Memorandumb) one person appolnted by the Secretary of State, In the event that the Secretary of State appolnts a person forthls purposec) the Chalr of the GovernorsThe members may appolnt addltlonal governors Governors may be removed by the person or persons whoappolnted them

No addltlonal governors were appolnted nor made by the Secretary of State In 2013/14.

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GOVERNORS' REPORT (continued)FOR THE YEAR ENDED 31 AUGUST 2014

The governors who were In offlce at 31 August 2014, and served throughout the perlod, are llsted on page 1

POLICIES AND PROCEDURES ADOPTED FOR THE INDUCTION AND TRAINING OF GOVERNORS

AlI trustees and governors are provlded wlth coples of procedures, mlnutes, accounts, budgets plans and otherdocuments that they wlll need to undedake thelr role as trustees and governors.

AII trustees and governors have access to a range of tralnlng programmes

ORGANISATIONAL STRUCTURE

The organlsabonal structure of the Academy conslsts of three Ievels The Mem bers Board, Governors and theSenlor Leadershlp Team (SLT).

The Academy Is governed by the Trustee Board whlch delegates functlons as approprlate to the GovernlngBody who are appolnted by the trustees as a commlttee. Trustees are dlrectorî of the charltable company forthe purposes of the Companles Act 2006 and trustees for the purposes of charlty leglslatlon The trustees andgovernors exerclse thelr powers and functlons wlth a vjew to fulfilllng a largely strateglc role In the runnlng of theAcademy

The governlng body ls responslble for settlng general pollcy, adoptlng an annual School Development Plan(SDP) and budget, monltorlng the Academy's use of budgets and maklng malor declslons about the dlrectlon Ofthe Academy and senlor staff appolntments. The governors are responslble for monltonng the pedormance ofthe Headteacher and SLT on a regular basls

The SLT conslsts of the Headteacher, Deputy Headteacher and three Asslstant Headteachers.

CONNECTED ORGANISATIONS INCLUDING RELATED PARTY RELATIONSHIPS

The trust works closely wlth Its maln feeder prlmary schools, Iocal communlty organlsatlons and charltles and anum ber of schools wlthin Llncolnshlre, but Is not pad of a wlder federatlon.

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OBJECTIVES AND ACTIVITIES

OBJECTS AND AIMS

The Academy Trust's prlnclpal object Is to advance, for the publlc beneflt, educatlon In the Unlted Klngdom , Inpadlcular but wlthout prqudlce to the generallty of the foregolng, by establlshlng, malntalnlng, carrylng on,managlng and developlng a school o'erlng a broad and balanced currlculum .

The alm of the school Is to provlde a quallty educatlon In a carlng and dlsclpllned Communlty

* By malntalnlng the school's reputatlon for excellent examlnatlon results,@ By allowlng puplls of all abllltles to attaln thelr full potentlal and develop thelr own speclal qualltles,* By o'erlng a wlde range of extracurncular actlvltles and sports,* By malntalnlng the hlgh standards and expectatlons of the school,. By developlng a posltlve attltude towards equal oppodunltles for all, regardless of sex, rellglon or

personal dlmcultles,. By expectlng puplls to value aII members of the school's comm unlty and Its envlronment,. By allowlng puplls to acqulre attltudes and skllls whlch enable them to glve purposes to thelr llves and to

make a contrlbutlon to the wlder communlty

OBJECTIVES, STRATEGIES AND ACTIVITIES

The maln oblectlves of the Academy durlng the year ended 31 August 2014 are summarlsed below

* To ensure that every pupll enloys the same hlgh quallty educatlon ln terms Y resourclng, tultlon and Care,* To ralse the standard of educatlonal achlevement of a11 puplls,* To lmprove the effectlveness of the Academy by keeplng the currlculum and organlsatlonal structure

under contlnual remew,@ To provlde value for money for the funds expended,. To comply wlth aII approprlate statutory and currlculum requlrements,* To malntaln close llnks w1th Industry and commerce,* To conduct the Academy's buslness In accordance w1th the hlghest standards of Integrlty, problty and

openness.

PUBLIC BENEFIT

The trustees conflrm that they have referred to the guldance contalned In the Charlty Commlsslon's generalguldance on publlc beneflt when revlewlng the Academy's oblectlves and alms and In plannlng future actlvltlesfor the year. Glven the actlvltles of the Academy and the student populatlon that It servlces, the trusteesconslder that the company's alms are demonstrably to the publlc beneflt.

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STRATEGIC REPORT

ACHIEVEMENTS AND PERFORMANCE

@ The Academy has a School Development Plan (SDP) approved by Governors to cover the next academlcyear. Thls conslsted of a 'smart' target plan under the four Ofsted headlngs of Leadershlp &Management, (Quallty of) Teachlng, Achlevement and Behavlour & Safety. The maln pnorltles andoutcomes from the 2013-2014 plan are llsted below.

Tarce-t 1 Leadershln & Manacement

@ Quality Assurance Framework: To fudher Improve the conslstency of teachlng and assessment vIao Depadment lnspectlon revlews and padlal SEFSo Revlew Team programme of lesson observatlons

@ Further develop staff teaching and Iearning groups ln order to address SDP prlorltles across theschool

. 'Diamond' Leadership Model: Contlnue to apply the Dlamond Leadershlp Model' at aII key stages@ A Quality Assurance Framework addressed 'W lthln School Varlatlon' and department Inspectlon

revlews were carrled out ln areas that requlred Improvement@ sLT Link Review A rlgorous SLT Llnk Revlew framework was establlshed, to challenge and suppod

depadment Ieaders and Indlvldual teachers to maxlmlse success wlth thelr GCSE and A Level classes@ Governoo Link Reviews These were held wlth the Heads of Faculty and Pastoral Leads meetlng thelr

Ilnk governor, wlth a focus on standards.

Tarcet 2 Teachlnn

@ Ensure that Learning Objectives are transparent and that Success Crlterla are speclflc, understood bystudents - and Ilnked to Ievels/grades where posslble

@ Lesson Planning:. Ensure that students' dlearning journey' wlthln a Iesson Is planned and that there are oppodunltles for

Independent Iearnlng. Plan key questions In Iessons & develop technlques to ensure that alI students have the tlme and

opportunlty to develop thelr responses eg 'Pose, Pause, Pounce, Bounce'. Drafting/re-drafting: Ensure that students have tlme to rework thelr Ideas elther lndlvldually or by

provldlng feedback In palrs/groups le develop peer Interactlon@ Quality of Teaching: Use the ASCL Departmental SEF to focus on movlng an analysls of teachlng

wlthln each faculty (In 2012-13 86% were good or better across the school). There was a focus on movlng towards aII lessons belng at least good Over the year, wlth all observed

lesson belng Judged to be good or better.

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Tamet 3 Achlevement

* Assessment BookslFoldeo : Use these In a conslstently effectlve manner across the whole school, topromde feedback vIa

o self or peer (red pen)o teacher assessment (green pen)o whlch ls then aded upon by students (purple pen) so that they know what grade/level they

are achlevlng at present and how to lmprove, Ieadlng to progress over tlme.* Ongolng Formatlve Feedback* A1m to provlde thls durlng lessons to enable students to progress from prlor to deslred Outcomes, uslng

self and peer assessment as well as teacher feedback, suppod and pralse, so that students are used toreworklng / redraftlng / redolng as a key process In thelr development (John Hattle approach)

@ In Ilne wlth our revlsed Literacy Policy:o Provlde wrltten feedback to students In thelr assessment books to Includeo Capltal Ietterso Spelllng of technlcal termso Paragraphso Punctuatlon

@ Reduce underachievem ent: To use the ASCL Depadmental SEF to analyse depadmental results atKS4, to Include the followlng groups Pupll Premlum, FSM, CLA, EAL, SA, SA+, SEND & Gender eg v1a'Perlod 6' sesslons

* Literacy & Numeracy: Fudher develop whole school currlculum and suppod to Improve readlng,comprehenslon and numeracy of weakest students

* Curriculum Our currlculum tlmetable and optlon procedures were fudher refined at Key Stages 4(GCSE) and 5 (Slxth Form), to asslst students In achlevlng thelr potentlal.

Tamet 4 Behavlour and Safetv

@ House System. Thls was successfully embedded In 2012-13 wlth students placed In vedlcal ('aII age')tutor groups wlthln the Houses. It has led to greater Integratlon across year groups and an Improvedschool communlty, parbcusarly through numerous lnter-house compebbons.

* Behaviour. There was an Increased focus on our 4-polnt Behavlour Plan, resultlng In the superbbehavlour In Iessons and around school that typlfy Bourne Academy.

* Absence. lncreased strategles for tackllng absenteelsm were Introduced resultlng In an Improved overallattendance flgure of 9504.

@ Rewards and Activities. A reward and actlvlty programme was extended In 2013-14, whlch was wellrecelved by students of aIl ages as It further Increased thelr motlvatlon to Success through our IncreaSedrecognltlon of thelr efforts.

These processes Ied to the followlng results ln the summer of 2014 -

Tar et ActualGCSE 5A*-C Includln En Ilsh and Mathematlcs 65% 63%A Level Pass Rate 100% 99.5%

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In addltlon to 1ts ongolng aIm of contlnuously Improvlng standards, the Academy Is commltted to promotlng thewlder educatlon of Its students. Thls Is achleved by dellverlng a range of experlences that come under theheadlng of SMSC (Splrltual, Moral, Soclal and Cultural) educatlon Thls encompasses -

. Dlscrete Rellglous Educatlon Iessons for aII students from Year 7 to 1 1 , deallng wlth Phllosophy, Ethlcsand the mqor rellglons, Includlng Chrlstlanlty.

@ Extenslve communlty Ilnks, b0th Iocally, reglonally and Internatlonally@ Slxth Form, Upper School, Lower School and House assemblles, stresslng the lmpodance of playlng a

posltlve pad In the llfe of the school and wlder communlty. Charlty fund-ralslng, coverlng the major natlonal days but also House nom lnated charltles suggested by

students. A wlde range of extra-currlcular spodlng actlvltles, padlcularly team spods. A wlde range of cultural actlvltles, Includlng Ad, Drama and Muslc, whlch have enabled us to quallfy for

the prestlglous Artsmark Award

The school was Judged to be Good In aII aspects by Ofstead In May 2013

GOING CONCERN

After maklng approprlate enqulrles, the Governors has a reasonable expectatlon that the Academy Trust hasadequate resources to contlnue In operatlonal exlstence for the foreseeable future For thls reason It contlnuesto adopt the golng concern basls In preparlng the flnanclal statements Fudher detalls regardlng the adoptlon ofthe golng concern basls can be found In the Statement of Accountlng Pollcles.

FINANCIAL REVIEW

The Trust held fund balances at 31 August 2014 of E11,730,314, comprlslng E470,631 of restrlcted funds, aflxed asset reserve of :12,131,653, a penslon reserve deflclt of 21,165,000 and E293,030 of unrestrlctedgeneral funds

Most of the Trust's lncome Is obtalned from the EFA In the form of recurrent grants, the use of whlch lsrestrlcted to partlcular purposes. The grants recelved from the EFA durlng the year ended 31 August 2014 andthe assoclated expendlture are shown as restrlcted funds (non flxed assets) ln the statement of flnanclalactlvltles

Durlng the year ended 31 August 2014, total expendlture of E6,257,961 was Iess than recurrent restrlcted grantfundlng from the EFA together wlth other restrlcted Incomlng resources. The excess of Income over expendlturefor the perlod was 2166,317

The maln flnanclal performance Indlctor Is the level of reserves held at the Balance Sheet date. In padlcular,the management of spendlng agalnst General Annual Grant (GAG) requlres speclal attentlon as the amount ofcarry forward Is restrlcted In the year under revlew, E105,474 was carrled forward representlng 1.7% (2013 -0 5%) of GAG Another key flnanclal performance Indlcator Is staffing costs as a percentage of GAG. For 2014thls was 83.5% (2013 - 81 3%) and thls wlll be monltored In future perlods

The Trust's non-teachlng staffs are entltled to membershlp of the Local Government Penslon Scheme. TheTrust's share of the Scheme's assets Is currently assessed to be Iess than Its Ilabllltles In the Scheme, andconsequently the Academy balance sheet shows a net Ilablllty of :1,165,000.

Detall Is stlll awalted on future fundlng for the Trust from 2015 onwards. Pupll members are expected to remalnstable

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PRINCIPAL RISKS AND UNCERTAINTIES

The governors are aware of the mqor nsks to whlch the Academy Trust Is exposed, padlcularly vIa regularrepods from the Flnance Commlttee, Audlt Commlttee and the PremISeS/HeaIth & Safety Commlttee A rlskreglster has been created focuslng on strateglc, operatlonal, compllance and flnanclal rlsks. Speclfic rISkS w1th ahlgher rlsk rattng Include competltion rlsk and the presence of other organlsatlons wlth slmllar oblects and Ilttlescope for dlfferentlatlon. Thls also has a dlrect Impact on the Ievel of finance the Academy recelves Insurancerlsk Is closely monltored to ensure there Is no flnanclal Ioss/lnablllty to replace Items If the Academy does nothave adequate Insurance cover. Llnked to lnsurance Is the rlsk of Iltlgation should the Academy not be fullycompllant wlth health and safety Ieglslatlon. Thls Is dlscussed and repoded through the Premtses/HeaIth andSafety Commlttee. Technology rlsk Is also closely monltored for data protectlon and general Informatlon securltyand the rlsks of vlrus/data corruptlon and Ioss. Systems and procedures have been establlshed to manage therlsks identlfled.

RESERVES POLICY

Subject to EFA'S constralnts on permltted balances, the Academy's pollcy Is to carry forward a prudent level ofresources. Due to antlclpated future cuts In fundlng, the sltuatlon wlll be kept under revsew The reserves of theAcademy are reviewed regularly and are consldered to be sumclent for the Academy's requlrements

INVESTMENT POLICY

The Academy operates an Investment pollcy that seeks to maxlmlse returns, mlnlmlse rlsk and malntalnflexlblllty and access to funds Current funds are held on deposlt.

PLANS FOR FUTURE PERIODS

In settlng our oblectlves and planning our actlvltles the trustees have glven careful conslderatlon to the CharltyCommlsslon's general guldance on publlc benefit.

The Trust wlll contlnue to work to ralse both the aspbratlons and outcomes of aIl !ts students at whatever age,

closlng gaps between the performances of dlfferent groups, where thls Is needed, and ensurlng they are able toproceed successfully to the next stage of thelr educatlon.

The prlorltles for the followlng year, conslstent wlth the Oblects and Alms of the Academy, wlll be set out In theannual School Development Plan (SDP), a copy of whlch wlll be dlstrlbuted to Trustees and to aII Governors, aswell as to the staff of the school. Governors wlll then be able to oversee the ongolng strateglc development ofthe Academy by challenglng and suppodlng the Headteacher and Leadershlp Team about the successfulachlevement of the targets set out In thls document. Alongslde the SDP, conslstent wlth SDP prlorltles, a plan ofproposed capltal developments In the next financlal year wlll be presented annually to Governors for thelrapproval

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DISCLOSURE OF INFORMATION TO AUDITORS

ln so far as the governors are aware

@ there Is no relevant audlt Informatlon of whlch the 's audltors are unaware,

. the governors have taken all the steps that they ought to have taken to make themselves aware of anyrelevant audlt lnformatlon and to establlsh that the audltors are aware of that lnformatlon

Thls repod, lncorporatlng the Strateglc repod, was approved by order of the Governors, as the companydlrectors, on (7% I'Q t/q- and slgned on the board's behalf by

lr awir Hofawokoivnesrno. !C

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GOVERNANCE STATEMENT

SCOPE OF RESPONSIBILIR

As Governors, we acknowledge we have overall responslblllty for ensurlng that Bourne RM Academy Ltd has aneffecbve and appropnate system of control, financlal and otherwlse. However such a system ls deslgned tomanage rather than ellmlnate the rlsk of fallure to achleve buslness objectlves, and can provlde Only reasonableand not absolute assurance agalnst materlal mlsstatement or Ioss.

The Governors has delegated the day-to-day responslblllty to the Headteacher, as Accountlng Ofhcer, forensurlng snanclal controls conform w1th the requlrements of both proprlety and good flnanclal management andln accordance w1th the requlrements and responslbllltles asslgned to It ln the fundlng agreement betweenBourne RM Academy Ltd and the Secretary of State for Educatlon. They are also responslble for repodlng tothe Governors any materlal weaknesses or breakdowns In lnternal control

GOVERNANCE

The Informatlon on governance Included here supplements that descnbed In the Governors' repod and In theGovernors' responslbllltles statement The Governors has formally met 4 tlmes durlng the perlod Attendancedurlng the perlod at meetlngs of the Governors was as follows

Governor Meetlngs attended Out of a posslble

Mr R Moore (ChaIr) 4 4Mr R Robeds Nlce Chalr) 4 4Mr L Reilly (Accountlng Officer/Headteacher) 4 4Mrs E Dllley (Staff Governor) 3 4Mrs S Jackson (Staff Governor) 4 4Mr P Bryan, Staff Governor 1 4Mr J Klrkman 3 4Mr D Plckenng 4 4Mrs H Powell 3 4Cllr S W oolley, Staff Governor 4 4Mrs L Dray 3 4Mr S Halgh 3 4Mr W Hawklns (New Chalr) 2 4Mrs C W ookey 4 4Mrs K Roche 4 4Cllr C Farquharson 0 4

Governance revlews

There have been no governance revlews durlng the year, nor are any future revlews planned at thls stage

The Finance Comm ittee Is a sub-commlttee of the maln Governors. Its prlmary purpose Is to asslst thedeclslon maklng of the governlng body by enabllng more detalled conslderatlon to be glven to the best means offulfilllng the governlng body's responslblllty to ensure sound management of the Academy's finances andresources, (ncludlng proper plannlng, monstorlng and problty. The other purposes of the commlttee are detaljedon the terms of reference for the commlttee.

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GOVERNANCE STATEMENT (continued)

There were no changes to the membershlp of the commlttee durlng the year Attendance at meetlngs In theperlod was as follows

Commlttee Member Meetlngs attended Out of a posslble

Mr R Robeds (Chalr of Flnance Commlttee) 4 4Mr P Bryan 1 4Mr J Klrkman 4 4Cllr Sue W oolley 4 4M r S Halgh 2 4Mr W Hawklns (New Chalr of Governors) 3 4M rs C W ookey 4 4Mr L Rellly 2 4Mrs K Roche 2 4Mrs S Jackson 4 4

The Audlt Commlttee ls also a sub-commlttee of the maln Governors. lts purpose IS to help promote the hlgheststandards of proprlety In the use of publlc funds and encourage proper accountablllty for the use of those fundsTo promote a cllmate of flnanclal dlsclpllne and control whlch wlll help to reduce the opportunlty for flnanclalmlsmanagement and promote the development of Internal controls systems whlch wlll help satlsfy theGovernlng Body that the Academy wlll achleve Its oblectlves and targets and Is operatlng. The other purposes ofthe commlttee are detalled on the terms of reference for the commlttee.

There were no changes to the membershlp of the commlttee durlng the year Attendance at meetlngs In theperlod was as follows

Commlttee Member Meetlngs attended Out of a posslble

Mr J Klrkman 4 4Mrs C W ookey 3 4Cllr C Farquharson 3 4

THE PURPOSE OF THE SYSTEM OF INTERNAL CONTROL

The system of lnternal control Is deslgned to manage rlsk to a reasonable level rather than to ellmlnate all rlsk offallure to achleve pollcles, alms and oblectlves, It can therefore only provlde reasonable and not absofuteassurance of e#ectlveness The system of lnternal control Is based on an ongolng process deslgned to Identlfyand prlorltlse the rlsks to the achlevement of Academy pollcles, alms and objectlves, to evaluate the llkellhoodof those rlsks belng reallsed and the lmpact should they be reallsed, and to manage them efficlently, e#ectlvelyand economlcally. The system of lnternal control has been In place ln Bourne RM Academy Ltd for the perlod 1September 2013 to 31 August 2014 and up to the date of approval of the annual repod and flnanclalstatements.

CAPACITY TO HANDLE RISK

The Governors has revlewed the key rlsks to whlch the Academy Is expo:ed together wlth the operatlng,flnanclal and compllance controls that have been Implemented to mltlgate those rlsks

. The Governors Is of thevlew that there ls a formal ongolng process for Identlfylng, evaluatlng and managlng the Academy's slgnlflcantrlsks, that has been In place for the perlod 1 September 2013 to 31 August 2014 and up to the date of approvalof the annual repod and flnanclal statements. Thls process ls regularly revlewed by the Governors.

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GOVERNANCE STATEMENT (continued)

THE RISK AND CONTROL FRAMEWORK

The Academy's system of Internal financlal control ls based on a framework of regular management Informatlonand admlnlstratlve procedures Includlng the segregatlon of dutles and a system of delegatlon andaccountablllty. ln padlcular, lt lncludes

* comprehenslve budgetlng and monltorlng systems wlth an annual budget and perlodlc hnanclal repodswhlch are revlewed and agreed by the Governors,

* regular revlews by the Flnance Commlttee of repods whlch Indlcate flnanclal pedormance agalnst theforecasts and of malor purchase plans, capltal works and expendlture programmes,

* settlng targets to measure financlal and other performance,* clearly defined purchaslng (asset purchase or capltal Investment) guldellnes.@ delegatlon of authorlty and segregatlon of dutles,* Identlflcatlon and management of nsks.

The Governors has consldered the need for a speclsc Internal audlt functlon and has declded to appolnt Mr ACushlng FCCA as Internal audltor.

The Internal audltor's role Includes glvlng advlce on financlal matters and perform lng a range Of checks on theAcademy's financlal systems. On a quaderly basls, the lnternal audltor repods to the Governors on theoperatlon of the systems of control and on the dlscharge of the Governors' flnanclal responslbllltles.The Internal Audltor assurance oplnlon Is that the finance systems Sn operatlon are developlng well and remalnGood wlth Outstandlng features The Internal Audltor has recognlsed the four classlficatlons of assuranceoplnlon recommended by the DFE. These are Outstandlng, Good, Satlsfactory or lnadequate and he haschosen to modlfy these to 'Good wlth Outstandlng features' as that reflects hls oplnlon of the flnanclal andassoclated admlnlstratlon systems belng operated

The Internal Audltor dellvered thelr schedule of work as planned The quaderly system checks and testlng wascompleted and no materlal control Issues were repoded Ongolng lssues lnclude the Ievel of servlce glven bythe Academy's payroll provlder, whlch Is belng monltored W ork on the antl-fraud checkIlst was completed andthe Im provement of the documentatlon recordlng capltal expendlture declslons was ralsed and rectlfled.

REVIEW OF EFFECTIVENESS

As Accountlng Ofhcer, the Headteacher has responslblllty for revlewlng the effectlveness of the system ofInternal control. Durlng the perlod ln questlon the revlew has been lnformed by* the work of the jnternal audltor,* the work of the external audltors,* the work of the executlve managers wlthln the Academy who have responslblllty for the development and

malntenance of the Internal control frameworkThe Accountlng Ofhcer has been advlsed of the Impllcatlons of the result of thelr revlew of the system of Internalcontrol by the Flnance Commlttee and a plan to address weaknesses and ensure contlnuous lmprovement ofthe system Is In place.

Approved by order of the members of the Governors on CIZJIZ.1 1 V and slgned on Its behalf, by

j '

MrW Hawkins Mr L ReillyChair of Governoo Vice Chair of Governors

Page 12

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STATEMENT ON REGULARIR , PROPRIETY AND O MPLIANCE

As Accountlng Offlcer of Bourne RM Academy Ltd I have consldered my responslblllty to notlfy the AcademyGovernors and the Educatlon Fundlng Agency of materlal Irregularlty, Improprlety and non-trmpllance wlth EFAterms and condltlons of fundlng, under the fundlng agreement ln place between the Academy and the Secretaryof State As part of my conslderatlon 1 have had due regard to the requlrements of the Academles FlnanclalHandbook

I conflrm that I and the Academy Governors are able to Identlfy any materlal, Irregular or Improper use of fundsby the Academy, or materlal non-compllance wlth the terms and condltlons of fundlng under the Academy'sfundlng agreement and the Academles Flnanclal Handbook.

I confirm that no Instances of materlal Irregularlty, Improprlety or fundlng non-compllance have been dlscoveredto date If any Instances are ldentlhed after the date of thls statement, these wIII be notlfied to the Governors andEFA

Mr L ReillyAccounting Officer

oate o'ztl a4 I ?+

j9% s h k

+

Page 13



GOVERNORS' RESPONSIBILITIES STATEMENTFOR THE YEAR ENDED 31 AUGUST 2014

The Governors (who act as governors of Bourne RM Academy Ltd and are also the dlrectors of the charltablecompany for the purposes of company Iaw) are responslble for preparlng the Governors' report (Includlng theStrateglc repod) and the financlal statements In accordance wlth the Annual Accounts Dlrectlon Issued by theEducatlon Fundlng Agency, Unlted Klngdom Accountlng Standards (Unlted Klngdom Generally AcceptedAccountlng Practlce) and appllcable Iaw and regulatlons.

Company Iaw requlres the Governors to prepare financlal statements for each flnanclal year Under companyIaw the Governors must not approve the flnanclal statements unless they are satlsfled that they glve a true andfalr vlew of the state of affalrs of the charltable company and of Its Incomlng resources and appllcatlon ofresources, Includlng Its Income and expendlture, for that perlod In preparlng these flnanclal statements, theGovernors are requlred to

* select sultable accountlng pollcles and then apply them conslstently,@ observe the methods and prlnclples of the Charltles SORP,

* make judgments and accountlng estlmates that are reasonable and prudent,@ state whether appllcable UK Accountlng Standards have been followed, sublect to any matenal

depadures dlsclosed and explalned ln the flnanclal statements,

* prepare the financlal statements on the golng concern basls unless It Is Inapproprlate to presume thatthe charltable company wlll contlnue In buslness.

The Governors are responslble for keeplng adequate accountlng records that are sufficlent to show andexplaln the charltable company's transactlons and dlsclose wlth reasonable accuracy at any tlme the flnanclalposltlon of the charltable company and enable them to ensure that the flnanclal statements comply wlth theCompanles Act 2006. They are also responslble for safeguardlng the assets of the charltable company andhence for taklng reasonable steps for the preventlon and detectlon of fraud and other Irregularltles.

The Governors are responslble for ensurlng that In Its conduct and operatlon the charltable company appllesfinanclal and other controls, whlch conform wlth the requlrements both of proprlety and of good flnanclalmanagement. They are also responslble for ensurlng grants recelved from EFA/DfE have been applled for thepurposes lntended.

The Governors are responslble for the m alntenance and Integrlty of the corporate and flnanclal InformatlonIncluded on the charltable company's webslte Leglslatlon In the Unlted Klngdom governlng the preparatlon anddlssemlnatlon of financlal statements may dlffer from leglslatlon ln other Jurlsdlctlons.

Approved by order of the members of the Governors on ozl t9 $ t W and slgned on Its behalf by

V jkMr W HawkinsChair of Governoo

Page 14

BOURNE RM ACADEMY LTD(A company Iimited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE BOARD OF GOVERNORS OF BOURNE RM ACADEMY LTD

W e have audlted the financlal statements of Bourne RM Academy Ltd for the year ended 31 August 2014 whlchcomprlse the Statement of financlal actlvltles, the Balance sheet, the Cash flow statement and the related notes.The flnanclal repodlng framework that has been applled In thelr preparatlon IS appllcable law, Unlted KlngdomAccountlng Standards (Unlted Klngdom Generally Accepted Accountlng Practlce) and the Academles AccountsDlrectlon 2013 to 2014 Issued by the Educatlon Fundlng Agency

Thls repod ls made solely to the Academy's members, as a body, In accordance wlth Chapter 3 of Part 16 of theCompanles Act 2006 Our audlt work has been undedaken so that we mlght state to the Academy's membersthose matters we are requlred to state to them In an Audltors' repod and for no other purpose To the fullestextent permltted by Iaw, we do not accept or assume responslblllty to anyone other than the Academy and Itsmembers, as a body, for our audlt work, for thls report, or for the oplnlon we have formed

RESPECTIVE RESPONSIBILITIES OF GOVERNORS AND AUDITORS

As explalned more fully In the Governors' responslbllltles statement, the Governors (who are also the dlrectorsof the Academy for the purposes of company Iaw) are responslble for the preparatlon of the flnanclal statementsand for belng satlsfled that they glve a true and falr vlew

Our responslblllty IS to audlt and express an Oplnlon On the flnanclal statements In accordance w1th appllcableIaw and lnternatlonal Standards on Audltlng (UK and Ireland) Those standards requlre us to comply wlth theAudltlng Practlces Board's Ethlcal Standards for Audltors.

SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS

An audlt Involves obtalnlng evldence about the amounts and dlsclosures ln the financlal statements sufhclent toglve reasonable assurance that the flnanclal statements are free from materlal mlsstatement, whether causedby fraud or error. Thls Includes an assessment of whether the accountlng pollcles are approprlate to theAcademy's clrcumstances and have been conslstently applled and adequately dlsclosed, the reasonableness ofslgnlflcant accountlng estlmates made by the Governors, and the overall presentatlon of the financlalstatements In addltlon, we read aII the flnanclal and non-flnanclal Informatlon In the Governors' report toIdentlfy materlal Inconslstencles wlth the audlted flnanclal statements and to Identlfy any lnformatlon that ISapparently materlally Incorrect based on, or materlally Inconslstent wlth, the knowledge acqulred by us In thecourse of performlng the audlt If we become aware of any apparent materlal mlsstatements or Inconslstencleswe conslder the lmpllcatlons for our report

OPINION ON FINANCIAL STATEMENTS

In our oplnlon the flnanclal statements. glve a true and falr vlew of the state of the Academy's affalrs as at 31 August 2014 and of Its Incomlng

resources and appllcatlon of resources, Includlng ItS lncome and expendlture, for the year then ended,

@ have been properly prepared In accordance wlth Unlted Klngdom Generally Accepted AccountlngPractlce, and

. have been prepared In accordance wlth the requlrements of the Companles Act 2006 and the AcademlesAccounts Dlrectlon 2013 to 2014 Issued by the Educatlon Fundlng Agency

OPINION ON OTHER MATTER PRESCRIBED BY THE COMPANIES ACT 2006

In our oplnlon the Informatlon glven In the Governors' report, Incorporatlng the Strateglc report, for the flnanclalyear for whlch the financlal statements are prepared Is conslstent Wlth the flnanclal statements.

Page 15

1* z.



INDEPENDENT AUDITORS' REPORT TO THE BOARD OF GOVERNORS OF BOURNE RM ACADEMY LTD

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

W e have nothlng to repod In respect of the followlng matters where the Companles Act 2006 requlres us to

report lo you If, ln our opjnlon* adequate accountlng records have not been kept, or returns adequate for our audlt have not been

recelved from branches not vlslted by us, or* the snanclal statements are not ln agreement wlth the accountlng records and returns, or

* certaln dlsclosures of Governors' remuneratlon speclfled by Iaw are not made, or@ we have not recelved aII the lnformatlon and explanatlons we requlre for our audlt.

Mark Bradshaw (Senlor statutory audltor)

for and on behalf of

Streets Audit LLP

W lndsor HouseA1 Buslness Park at Long BennlngtonNottsNG23 5JRDate Q l N u t lmkw

Page 16

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INDEPENDENT REPORTING ACCOUNTANTS' ASSURANCE REPORT ON REGUG RITY TO BOURNE RMACADEMY LTD AND THE EDUCATION FUNDING AGENCY

In accordance wlth the terms of our engagement Ietter dated 16 September 2013 and fudher to therequlrements of the Educatlon Fundlng Agency (EFA) as lncluded ln the Academles Accounts Dlrectlon 2013 to2014, we have carrled out an engagement to obtaln Ilmlted assurance about whether the expendlture dlsbursedand lncome recelved by Bourne RM Academy Ltd durlng the year 1 September 2013 to 31 August 2014 havebeen applled to the purposes Identlfled by Parllament and the flnanclal transactlons conform to the authorltleswhlch govern them.

Thls repod Is made solely to Bourne RM Academy Ltd and EFA In accordance wlth the terms of ourengagement Ietter Our work has been undertaken so that we m lght state to Bourne RM Academy Ltd and EFAthose matters we are requlred to state In a report and for no other purpose To the fullest extent permltted byIaw, we do not accept or assume responslblllty to anyone other than Bourne RM Academy Ltd and EFA, for ourwork, for thls report, or for the concluslon we have formed.

RESPECTIVE RESPONSIBILITIES OF BOURNE RM ACADEMY LTD'S ACCOUNTING OFFICER AND THEREPORTING ACCOUNTANT

The accountlng officer Is responslble, under the requlrements of Bourne RM Academy Ltd's fundlng agreementwlth the Secretary of State for Educatlon dated 10 March 2011, and the Academ les Flnanclal Handbook extantfrom 1 September 2013, for ensurlng that expendlture dlsbursed and Income recelved Is applled for thepurposes Intended by Parllament and the flnanclal transactlons conform to the authontjes whlch govern them

Our responslbllltles for thls engagement are establlshed ln the Unlted Klngdom by our professlon's ethlcalguldance and are to obtaln Ilm lted assurance and report ln accordance wlth our engagement letter and therequlrements of the Academles Accounts Dlrectlon 2013 to 2014 W e repod to you whether anythlng has cometo our attentlon In carrylng out our work whlch suggests that ln aI! materlal respects, expendlture dlsbursed andIncome recelved durlng the year 1 September 2013 to 31 August 2014 have not been applled to purposesIntended by Parllament or that the flnanclal transactlons do not conform to the authorltles whlch govern them.

APPROACH

W e conducted our engagement In accordance wlth the Academles Accounts Dlrectlon 2013 to 2014 lssued byEFA W e performed a Ilmlted assurance engagement as deflned In our engagement Ietter.

The oblectlve of a Ilm lted assurance engagement ls to perform such procedures as to obtaln Informatlon andexplanatlons In order to provlde us wlth sufhclent approprlate evldence to express a negatlve concluslon onregularlty

A llm lted assurance engagement Is more llmlted In scope than a reasonable assurance engagement andconsequently does not enable us to obtaln assurance that we would become aware of aII slgnlflcant matters thatmlght be Identlfled In a reasonable assurance engagement. Accordlngly, we do not express a posltlve oplnlon

Our engagement Includes examlnatlon, on a test basls, of evldence relevant to the regularlty and proprlety ofthe Academy's Income and expendlture.

Page 17

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INDEPENDENT REPORTING ACCOUNTANTS' ASSURANCE REPORT ON REGULARITY TO BOURNE RMACADEMY LTD AND THE EDUCATION FUNDING AGENCY (continued)

CONCLUSION

In the course of our work, nothlng has come to our attentlon whlch suggests that In a1l materlal respects theexpendlture dlsbursed and lncome recelved dunng the year 1 September 2013 to 31 August 2014 have notbeen applled to purposes lntended by Parllament and the flnanclal transactlons do not conform to the authorltleswhlch govern them.

Mark Bradshaw (Senlor statutory audltor)

for and on behalf of

Streets Audit LLP

W lndsor HouseA1 Buslness Park at Long BennlngtonNottsNG23 5JR

Date Cl 4 u$ 1.0$ ut

Page 18

t *



STATEMENT OF FINANCIAL ACTIVITIES(incorporating income and expenditure account and statement of total recognised gains and losses)

FOR THE YEAR ENDED 31 AUGUST 2014

RestrictedUnrestricted Restricted fixed asset Total rola/

funds funds funds funds funds2014 2014 2014 2014 2013

Note E E E E fINCOMING RESOURCESIncomlng resources fromgenerated fundsVoluntary Income 2 - 10,387 - 10,387 21,541Actlvltles for generatlng funds ,3 4 70,69: - - 70,690 247, 78OInvestment Income 5 2,714 - - 2,714 1,429

Incomlng resources fromcharltable actlvltles 6 - 6,659,240 521,616 7,180,856 6,614,524

TOTAL INCOMINGRESOURCES 73,404 6,669,627 521,616 7,264,647 6,885,274

RESOURCES EXPENDEDCosts of generatlng fundsFundralslng expenses andother costs 4 31,869 - - 31,869 -

Charltable actlvltles 10 9,232 6,256,598 M ,226 6,320,066 6,440,967Governance costs 7 - 48,363 - 48,363 68, 180

TOTAL RESOURCESEXPENDED 9 41,101 6,304,961 54,226 6,400,288 6,509, 147

NET INCOMING RESOURCESBEFORE TRANSFERS 32,303 364,666 467,390 864,359 376, 127

Page 19

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STATEMENT OF FINANCIAL ACTIVITIES (continued)FOR THE YEAR ENDED 31 AUGUST 2014

RestrictedUnrestricted Restricted fixed asset Total Total

funds funds funds funds funds2Q14 2Q14 2Q14 2014 2013

Note E E E E f

Transfers between Funds 20 (4,781) (245,349) 250,130 - -

NET INCOME FOR THE YEAR 27,522 119,317 717,520 864,359 376, 127

Actuarlal galns and Iosses ondesned benefit penslonschemes - (336,000) - (336,000) 23,000

NET MOVEMENT IN FUNDSFOR THE YEAR 27,522 (216,683) 717,520 528,359 399, 127

Total funds at 1 September2013 265,508 (477, 686) 1 1,414, 133 1 1,201,955 10,802,828

TOTAL FUNDS AT 31AUGUST 2014 293,030 (694,369) 12,131,653 11,730,314 11,201,955

AII actlvltles relate to contlnulng operatlons.

The Statement of Flnanclal Actlvltles Includes aIl gajns and Iosses recognlsed In the year

The notes on pages 23 to 46 form part of these flnanclal statements.

Page 20

4 >.


(A company Iimited by guarantee)REGISTERED NUMBER: 07659187

BALANCE SHEETAS AT 31 AUGUST 2014

2014 2013Note E E f f

FIXED ASSETSTanglble assets 16 11,934,152 11,414, 133CURRENT ASSETSStocks 17 14,557 8, 167Debtors 18 141,974 215,059Cash at bank and In hand 955,349 486, 709

1,111,880 709,935CREDITORS: amounts falllng due wlthlnone year 19 (150,718) (140, 1 13)

NET CURRENT ASSETS 961,162 569,822

TOTAL ASSETS LESS CURRENT LIABILITIES 12,895,314 1 1,983,955Deflned benefit penslon scheme Ilablllty 29 (1,165,000) (782,000)

NET ASSETS INCLUDING PENSIONSCHEM E LIABILIR 11,730,314 11,201,955

FUNDS OF THE ACADEMYRestrlcted fundsRestrlcted funds 20 470,631 304,314Restrlcted fixed asset funds 20 12,131,653 11,414, 133

Restrlcted funds excludlng penslon Ilablllty 12,602,284 11,718,447Penslon reserve (1,165,000) (782,000)Total restrlcted funds 11,437,284 10,936,447

Unrestncted funds 20 293,030 265,508

TOTAL FUNDS 11,730,314 1 1,201,955

The flnanclal statements were approved by the Governors, and authorlsed for lssue, onoo./ t z-tooottj- and are slgned on thelr behalf, by

*%C aWi r Ho fz Wo l ivlsr n o rs ( SC

The notes on pages 23 to 46 form pad of these flnanclal statements

Page 21

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CASH FLOW STATEMENTFOR THE YEAR ENDED 31 AUGUST 2014

2014 2013Note E f

Net cash flow from operatlng actlvlbes 24 1,045,599 324,853

Returns on Investments and servlctng of flnance 25 (2,714) (1,429)Capltal expendlture and financlal Investment 25 (574,245) (430,408)

INCREASE/IDECREASE) IN CASH IN THE YEAR 468,640 (106,984)

RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDSFOR THE YEAR ENDED 31 AUGUST 2014

2014 2013t f

Increase/lDecrease) In cash In the year 468,640 (106,984)

MOVEMENT IN NET FUNDS IN THE YEAR 468,640 (106,984)Net funds at 1 September 2013 486,709 593,693

NET FUNDS AT 31 AUGUST 2014 955,349 486, 709

The notes on pages 23 to 46 form pad of these financlal statements.

Page 22

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NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 AUGUST 2014

1. ACCOUNTING POLICIES

1.1 Basis of preparation of financial statements

The flnanclal statements have been prepared under the hlstorlcal cost conventlon, wlth theexceptlon of lnvestments whlch are lncluded at market value. The flnanclal statements have beenprepared In accordance w1th the Statement of Recommended Practlce (SORP), 'Accountlng andRepodlng by Charltles' publlshed In March 2005, the Academ les Accounts Dlrectlon 2013 to 2014Issued by EFA, appllcable accountlng standards and the Companles Act 2006.

1.2 Fund accounting

Unrestrlcted Income funds represent those resources whlch may be used towards m eetlng any ofthe charltable oblects of the Academy at the dlscretlon of the Governors.

Restrlcted flxed asset funds are resources whlch are to be applled to speclflc capltal purposesImposed by funders where the asset acqulred or created Is held for a speclsc purpose

Restrlcted general funds comprlse al1 other restrlcted funds recelved and lnclude grants fromEducatlon Fundlng Agency.

Investment lncome, galns and Iosses are allocated to the approprlate fund

Page 23

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1. ACCOUNTING POLICIES (continued)

1.3 Incoming resources

AII Incomlng resources are Included In the Statement of financlal actlvltles When the Academy hasentltlement to the funds, certalnty of recelpt and the amount can be measured w1th Sufficlent

rellablllty

Grants are Included In the Statement of financlal actlvltles On a recelvable basls. The balance ofIncome recelved for speclfic purposes but not expended dunng the perlod Is shown In the relevantfunds on the Balance sheet. W here Income Is recelved In advance of entltlement of recelpt, 1tsrecognltlon IS deferred and Included In credltors as deferred lncome W here entltlement occursbefore lncome Is recelved, the lncome IS accrued.

General Annual Grant Is recognlsed In full In the year for whlch It Is recelvable and any unspentamount Is reflected as a balance In the restrlcted general fund.

Capltal grants are recognlsed when recelvable and are not deferred over the Ilfe of the asset onwhlch they are expended Unspent amounts of capltal grant are reflected In the balance In therestrlcted fixed asset fund

Sponsorshlp lncome provlded to the Academy whlch amounts to a donatlon Is recognlsed In theStatement of flnanclal actlvltles In the perlod In whlch lt Is recelvable, where there Is certalnty ofrecelpt and It ls measurable

The value of donated servlces and glqs In klnd provlded to the Academy are recognlsed at thelropen market value In the perlod ln whlch they are recelvable as Incomlng resources, where thebenefit to the Academy can be rellably measured. An equlvalent amount IS Included as expendltureunder the relevant headlng ln the Statement of flnanclal actlvltles, except Where the glft In klnd Was aflxed asset In whlch case the amount ls Included In the approprlate flxed asset category anddepreclated over the useful economlc Ilfe In accordance w1th the Academy's pollcles.

Donatlons are recognlsed on a recelvable basls Where there Is certalnty Of recelpt and the amountcan be rellably measured.

Income tax recoverable ln relatlon to donatlons recelved under Glft AId or deeds of covenant Isrecognlsed at the tlme of the donatlon.

Other Income, Includlng the hlre of facllltles, Is recognlsed ln the perlod In Whlch It IS recelvable andto the extent the goods have been provlded or on completlon of the servlce.

Page 24

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1. ACCOUNTING POLICIES (continued)

1.4 Resources expended

Expendlture ls recognlsed ln the perlod In whlch a Ilabllsty Is Incurred and has been classlfled underheadlngs that aggregate aII costs related to that category. W here costs cannot be dlrectly attrlbutedto padlcular headlngs they have been allocated on a basls conslstent wlth the use of resources, wlthcentral staff costs allocated on the basls of tlme spent, and depreclatlon charges allocated on thepodlon of the asset's use. Other suppod costs are allocated based on the spread of staff costs.

Costs of generatlng funds are costs Incurred ln attractlng voluntary lncome, and those lncurred Intradlng actlvltles that ralse funds.

Charltable actlvltles are costs lncurred In the Academy's educatlonal operatlons

Governance costs Include the costs attrlbutable to the Academy's compllance wlth constltutlonal andstatutory requlrements, lncludlng audlt, strateglc management and Governors' m eetlngs andrelmbursed expenses

AII resources expended are Incluslve of Irrecoverable VAT

1.5 Going concern

The Governors assess whether the use of golng concern Is approprlate, l.e whether there are anymatenal uncertalntles related to events or condltlons that may cast slgnlflcant doubt on the ablllty ofthe Academy to contlnue as a golng concern. The Governors make thls assessment ln respect of aperlod of one year from the date of approval of the financlal statements.

1.6 Tangible fixed assets and depreciation

All assets costlng more than E1,000 are capltallsed as tanglble flxed assets.

W here tanglble flxed assets have been acqulred wlth the a1d of speclflc grants, elther from thegovernment or from the prlvate sector, they are Included fn the Balance sheet at cost anddepreclated over thelr expected useful economlc Ilfe The related grants are credlted to a restrlctedfixed asset fund In the Statement of flnanclal actlvltles and are carrled forward In the Balance sheetDepreclatlon on such assets ls charged to the restrlcted flxed asset fund In the Statement offlnanclal actlvltles so as to reduce the fund over the useful economlc Ilfe of the related asset on abasls conslstent wlth the Academy's depreclatlon pollcy W here tanglble fixed assets have beenacqulred wlth unrestrlcted funds, depreclatlon on such assets ls charged to the unrestrlcted fund

The Academy Incurs slgnlflcant repalr and replacement costs such that the Governors belleve theproperty's resldual value Is not materlally dlfferent to the cost. Accordlngly no depreclatlon Ischarged.

Assets In the course of constructlon are Included at cost. Depreclatlon on these assets Is notcharged untll they are brought lnto use.

A revlew for Impalrment of a flxed asset Is carrled out If events or changes In clrcumstances lndlcatethat the carrylng value of any flxed asset may not be recoverable. Shortfalls between the carrytngvalue of flxed assets and thelr recoverable amounts are recognlsed as Im palrments. ImpalrmentIosses are recognlsed In the Statement of Flnanclal Actlvltles

Page 25

* >




1- ACCOUNTING POLICIES (continued)

Tanglble fixed assets are stated at cost less depreclatlon Depreclatlon IS provlded at ratescalculated to wrlte off the cost of flxed assets, Iess thelr estlmated resldual value, over thelrexpected useful llves on the followlng bases

Freehold propedy - Not deprecsatedMotor vehlcles - 25% stralght IlneFlxtures, fittlngs and equlpment - 10% stralght IlneComputer equlpment - 25e/o stralght llne

1.7 Stocks

Stocks are valued at the lower of cost and net reallsable value after maklng due allowance forobsolete and slow-movlng stocks. Cost Includes aII direct costs and an approprlate proportlon offixed and vanable overheads.

1.8 TaxationThe Academy Is consldered to pass the tests set out In Paragraph 1 Schedule 6 of the Flnance Act2010 and therefore It meets the desnltlon of a charltable company for UK corporatlon tax purposesAccordlngly, the Academy Is potentlally exempt from taxatlon In respect of Income or capltal galnsrecelved wlthln categorles covered by Chapter 3 Pad 11 of the Corporatlon Tax Act 2010 or Sectlon256 of the Taxatlon of Chargeable Galns Act 1992, to the extent that such Income or galns areapplled excluslvely to chantable purposes.

1.9 Pensions BenefitsRetlrement benests to employees of the Academy are provlded by the Teachers' Penslon Scheme(''TPS'') and the Local Government Penslon Scheme (''LGPS''). These are defined benefit schemes,are contracted out of the State Earnlngs-Related Penslon Scheme (''SERPS''), and the assets areheld separately from those of the Academy.

The TPS js an unfunded scheme and contrlbutlons are calculated so as to spread the cost ofpenslons over employees' worklng Ilves w1th the Academy In such a way that the penslon cost 1: asubstantlafly Ievel percentage of current and future penslonable payrolf

. The contrlbutlons aredetermlned by the Government Actuary on the basls of qulnquennlal valuatlons uslng a prospectlvebeneflt method. As stated In note 29, the TPS is a multl-employer scheme and the Academy Isunable to Identlfy lts share of the underlylng assets and Ilabllltles of the scheme on a conslstent andreasonable basls The TPS Is therefore treated as a deflned contrlbutlon scheme and thecontnbutlons recognlsed as they are pald each year.The LGPS Is a funded scheme and the assets are held separately from those of the Academy Inseparate trustee admlnlstered funds. Penslon scheme assets are measured at falr value andltablllttes are measured on an actuacal basls usùng the prqected unst method and d6scounted at arate equlvalent to the current rate of return on a hlgh quallty corporate bond of equlvalent term andcurrency to the Ilabllltles The actuarlal valuatlons are obtalned at least trlennlally and are updated ateach balance sheet date. The amounts charged to operatlng surplus are the current servlce costsand galns and losses on the settlements and cudallments. They are Included as pad of staff costs.Past servlce costs are recognlsed lmmedlately In the Statement of financlal actlvltles If the benefltshave vested. If the beneflts have not vested lmmedîately, the costs are recognlsed over the perlodvestlng occurs The expected return on assets and the Interest cost are shown as a net financeamount of other flnance costs or credlts adlacent to lnterest Actuarlal galns and losses arerecognlsed lmmedlately ln other galns and losses

Page 26

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2. VOLUNTARY INCOME

Unrestricted Restricted Total Totalfunds funds funds funds2:14 2:14 2014 2013

E E E fDonatlons - 10,387 10,387 21,M 1

3. ACTIVITIES FOR GENERATING FUNDS

Unrestricted Restricted Total Tbla/funds funds funds funds2014 2014 2014 2013

E E E f

Hlre of facllltles 13,481 - 13,481 28, 679School fund Income - - - 144,225Other Income 14,576 - 14,576 74,876Insurance recelpts 3,397 - 3,397 -Unlform shop sales 39,236 - 39,236 -

70,690 - 70,690 247, 780

4. TRADING ACTIVITIES

Unrestricted Restricted Total Totalfunds funds funds funds2014 2014 2014 2013

E E E f

Fundraising trading expensesCost of fundralslng actlvltles 31,869 - 31,869 -

Net expendlture from tradlng actlvltles (31,869) - (31,869) -

5. INVESTM ENT INCOM E

Unrestricted Restricted Total Totalfunds funds funds funds2014 2014 2014 2013

E E E f

Bank Interest 2,714 - 2,714 1,429

Page 27

* *




6. INCOMING RESOURCES FROM CHARITABLE ACTIVITIES

Unrestricted Restricted Total Totalfunds funds funds funds2814 2Q14 2014 2013

E E E f

Academy's educatlonal operatlons - 7,180,856 7,180,856 6,614,524

FUNDING FOR ACADEMY'S EDUCATIONAL OPERATIONS

Unrestricted Restricted Total Totalfunds funds funds fgnds2014 2014 2014 2013

t t t f

DfE/EFA revenue grantsCapltal grants - 222,116 222,116 169,483Salary Fundlng Income - 51,791 51,791 -School Fund Income - 173,476 173,476 -Other lncome - 969 969 -General Annual Grant - 6,055,223 6,055,223 6,035,338Other DX/EFA grants - 231,:13 231,:13 106,971

- 6,734,588 6,734,588 6,31 1, 792

Other government grantsLocal Authorlty grants - 430,568 430,568 302, 732

- 430,568 430,568 302, 732

Other fundingNon government grants - 15,700 15,700 -

- 15,700 15,700 -

- 7,180,856 7,180,856 6, 614,524

Page 28

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7. GOVERNANCE COSTS

Unrestricted Restricted Total Fola/funds funds funds funds2014 2014 2014 2013

V E E E

Governance audltors' remuneratlon - 7,850 7,850 8, 650Legal and professlonal fees - 5,231 5,231 25,440Personnel fees - 24,472 24,472 21,844Charltable donatlons - 9,310 9,310 10, 746Internal audltor - 1,500 1,50: 1, 500

- 48,363 48,363 68, 180

Page 29

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8. CHARITABLE ACTIVITIES

Total Totalfunds funds2014 2013

E fDIRECT COSTS - EDUCATIONAL OPERATIONS

W ages and salarles 3,708,268 3,642,933Natlonal lnsurance 282,220 281, 713Penslon cost 513,941 497,347Depreclatlon 54,226 32,401Penslon Income 20,000 25,000Educatlonal Supplles 143,584 320,676Examlnatlon Fees 142,296 106,334Staff Development 23,831 26,811Other Dlrect Costs 274,955 42, 770Technology Costs 12,943 62,077

5,176,264 5,038,062

SUPPORT COSTS - EDUCATIONAL OPERATIONS

W ages and salarles 435,811 346,334Natlonal Insurance 21,366 17,392Penslon cost 115,635 77, 165Profit on dlsposal of flxed assets - (475)Recrultment and Support 34,946 49,288Malntenance of Premlses and Equlpment 104,932 445,476Cleanlng 119,555 1 16, 784Rent and Rates 34,771 37,598lnsurance 49,128 54,622Securlty and Transpod 26,957 20,214Caterlng 37,166 42, 689Bank Interest and Charges 1,815 2,034Other Suppod Costs 64,152 93,672Energy 77,369 75,969Travel and Subslstence 20,199 24, 143

1,143,792 1,402,905

6,320,056 6,440,967

Page 30

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9. RESOURCES EXPENDED

Staff costs Non Pay Expenditure Total rola/Prem ises Other costs

2014 2014 2014 2014 2013î t Q V f

Fundralslng expenses - - 31,869 31,869 -

Costs of generating funds - - 31,869 31,869 -

Dlrect costs 4,604,429 - 671,836 5,176,264 5,038,062Suppod costs 572,812 193,186 377,794 1,143,792 4,402,905

Charitable activities 5477,241 193,186 1,049,629 6,320,056 6,440,967

Governance - - 48,363 48,363 68, 180

5477,241 193,186 1,129,861 6,400,288 6,509, 147

lncluded wlthln resources expended are the followlng transactlons lndlvldual transactlons exceedlngE5,000 are ldentlfled separately

Total E Individual items above E5,000Amount E Reason

Ex-gratla payments 6,000 6,000 An agreed ex-gratla payment wasmade In order for the depadmentto take forward new technologlesand develop a currlculumprogramme to meet the dlverseneeds and asplratlons of thestudents

10. ANALYSIS OF RESOURCES EXPENDED BY ACTIVITIES

Activitiesundertaken Support

directly costs Total Total2014 2014 2014 2013

E E E f

Academy's educatlonal operatlons 5,176,264 1,143,792 6,320,056 6,440,967

Page 31

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11. NET INCOMING RESOURCES

Thls Is stated after charglng

2014 2013E f

Depreclatlon of tanglble fixed assets- owned by the charlty 64,226 32,401

Audltor's remuneratlon - audlt fees 7,860 5,600Audltors' remuneratlon - non-audlt 1,500 2,050Operatlng Iease 15,116 15, 140

12. STAFF

a. Staff costs

Staff costs were as follows'

2014 2013E f

W ages and salarles 4,144,:79 3,989,267Soclal securlty costs 303,586 299, 105Other penslon costs (Note 29) 629,576 574,512

5,077,241 4,862, 884

b. Staff numbeo

The average number of persons employed by the Academy durlng the year expressed as full tlmeequlvalents was as follows

2014 2013No. No

Teachers 73 72Admlnlstratlon and Support 58 45Management 12 9

143 126

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12. STAFF (continued)

c. Higher paid staff

The number of employees whose emoluments fell wlthln the followlng bands was

2014 2013No. No

In the band E60,001 - E70,000 1 1ln the band E70,001 - 280,000 1 0In the band E80,001 - E90,000 0 1In the band E90,001 - E100,000 1 0

3 2

The above employees padlclpated In the Teachers' Penslon Scheme. Durlng the perlod ended 31 August2014, penslon contrlbutlons for these sta; amounted to 232,693 (2013 - f22,246)

13. GOVERNORF REMUNERATION AND EXPENSES

The Headteacher and Staff Governors only recelve remuneratlon In respect of servlces they provldeundedaklng the roles of Headteacher and staff and not In respect of thelr servlces as governors Othergovernors dId not recelve any payments, other than expenses, from the Academy In respect of thelr roleas governors The value of the staff governors' remuneratlon for the perlod was as follows

Mr L Rellly, Headteacher E90k - E100kMrs S Jackson, Staff Governor V10k - E15kMrs K Roche, Staff Governor E15k - :20kMrs E Dllley, Staff Governor 245* - V50kMr R Moore, Chalr of Governors f2ok - E5k

Related party transactlons Involvlng the trustees are set out In Note 30.

14. GOVERNORS' AND OFFICERS. INSURANCE

In accordance w1th normal commerclal practlce the Academy has purchased lnsurance to protectGovernors and offlcers from clalms arlslng from negllgent acts, errors or omlsslons occurrlng wh11st onacademy buslness The lnsurance provldes cover up to E2,000,000 on any one clalm and the cost for the

ded 31 August 2014 was E2,411 (2013 - f 1,337) The cost of thls Insurance Is lncluded In the totalyear enInsurance cost.

Page 33

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15. PENSION FINANCE COST2014 2013

E fExpected return on penslon scheme assets 64,000 36,000Interest on penslon scheme Ilabllltles (84,000) (61,000)

(20,000) (25,000)

Page 34

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16. TANGIBLE FIXED ASSETS

Freehold Motor Fixtures and Computerproperty vehicles fittings equipment

E E t t

CostAt 1 September 2013 11,301,967 28:590 42,108 84,260Addltlons 482,901 - 6,743 84,601

At 31 August 2014 11,784,868 28,590 48,861 168,:61

DepreciationAt 1 September 2013 - 11,750 5,284 25,668charge for the year - 7,125 4,886 42,215

At 31 August 2014 - 18,875 10,170 67,883

Net book valueAt 31 August 2014 11,784,868 9,625 38,681 1:0,978

U

Al 31 August 2013 1 1,301,967 16, 750 36,824 58,592

TotalE

CostAt 1 September 2013 11,456,835Addltlons 574,245

At 31 August 2014 12,031,080

DepreciationAt 1 September 2013 42,702Charge for the year 54,226

At 31 August 2014 96,928

Net book valueAt 31 August 2014 11,934,152

Af 31 August 2013 1 1,414, 133

17. STOCKS2014 2013

E fUnlform stock 14,557 8, 167

Page 35

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18. DEBTORS2014 2013

t fTrade debtors 4,340 8,531Other debtors 56,226 89,288Prepayments and accrued Income 81,4Q8 1 1 7,240

141,974 215, 059

19. CREDITORS:Amounts falling due within one year

2014 2013E f

Trade credltors 3,357 31,556Other credltors 779 3,835Accruals and deferred Income 146,582 104, 722

150,718 140, 113

EDeferred incom eDeferred Income at 1 September 2013 16,084Resources deferred durlng the year 45,495Amounts released from prevlou: years (16,084)

Deferred lncome at 31 August 2014 45,495

Deferred Income relates to Devolved Capltal, rates Income, and varlous trlp/muslc Iesson Incomerecelved In advance

Page 36




2:. STATEMENT OF FUNDS

Brought Incom ing Resources Transfers Gains/ CarriedFo- ard resources Expended in/out (Losses) Forward

E L E E E E

Unrestrictedfunds

General Funds - aIIfunds 265,508 73,404 (41,101) (4,781) - 293,030

Restricted funds

General AnnualGrant (GAG) 258,713 6,078,973 (6,056,922) 83,423 - 364,187

Other RestrlctedFunds 45,601 590,654 (201,039) (328,772) - 106,##4Penslon Reserve (782,080) - (47,0Q0) - (3364:0) (1,165,û;;)

(477,686) 6,669,627 (6,304,961) (245,349) (336,:00) (694,369)

Restricted fixed asset funds

Transfer from LocalAuthorlty onconverslon 10,759,699 - (2,575) - - 10,757,124

DfE/EFA capltalgrants - 197,500 - - - 197,500

Other governmentgrants - 299,500 - - - 299,500Capltal expendlturefrom othersources IncludlngGAG 654,434 24,616 (51,651) 250,130 - 877,529

11,414,133 521,616 (54,226) 250,130 - 12,131,653Total restrlctedfunds 10,936,M 7 7,191,243 (6,359,187) 4,781 (336,000) 11,437,284

Total of funds 11,201,955 7,264,647 (6,400,288) - (336,000) 11,730,314

The speclfic purposes for whlch the funds are to be applled are as follows

Unrestricted funds

Unrestrlcted funds represent b0th those resources, as well as funds transferred to the Academy from theLocal Authorlty upon converslon, whlch may be used towards meetlng any of the objects of the Academyat the dlscretlon of the Governors These are not currently deslgnated for padlcular purposes.

Page 37

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20. STATEMENT OF FUNDS (continued)

Restricted Fixed Asset funds

Transfer from former school represents the land, bulldlngs and assets transferred to the Academy fromthe Local Authorlty upon converslon.

DE/EFA capltal grants relates to an EFA Capltal Malntenance Grant recelved for the new Sfxth Formblock whlch has commenced In September 2014.

Other government grants relates to a Sectlon 106 grant from the Local Authorlty for four new classrooms

Capltal expendlture from other sources represents fixed asset expendlture transferred from otherrestncted and unrestrlcted Income Includlng GAG.

Restricted Revenue funds

General Annual Grant (GAG) ls made up of a number of dlfferent fundlng streams, aII of whlch are usedto cover the runnlng costs of the Academy

Penslon Reserve represents the current dehclt balance of the Local Government Penslon Scheme(LGPS).

Under the fundlng agreement wlth the Secretary of Stat je the Academy was not sublect to a llmlt on theamount of GAG that It could carry forward at 31 August 2014.

SUMMARY OF FUNDS

Brought Incoming Resources Transfeo Gains/ CarriedForward resources Expended in/out (Losses) Fo- ard

E E E E E E

Unrestrlcted funds 265,5:8 73,494 (41,101) (4,781) - 293,:3:Restrlcted funds (477,686) 6,669,627 (6,304,961) (245,349) (336,000) (694,369)Restrlcted flxedasset funds 11,414,133 521,616 (54,226) 250,130 - 12,131,653

11,201,965 7,264,647 (6,400,288) - (336,000) 11,730,314

Page 38




21. ANALYSIS OF NET ASSETS BE-IW EEN FUNDS

RestrictedUnrestricted Restricted fixed asset Total Total

funds funds funds funds funds2014 2014 2014 2014 2013

E E E E f

Tanglble flxed assets - - 11,934,152 11,934,152 1 1,414, 133Current assets 293,030 621,349 197,501 1,111,880 709,935Credltors due wlthln one year - (150,718) - (150,718) (140, 1 13)Provlslons for Ilabllltles andcharges - (1,165,000) - (1,165,000) (782,000)

293,030 (694,369) 12,131,653 11,730,314 1 1,201, 955

22. CAPITAL COMM ITMENTS

2014 2013E f

Contracted for, but not provlded ln the financlal statements - -

23. FINANCIAL COMMITMENTS

At 31 August 2014 the Academy had annual commltments under non-cancellable operatjng Ieases asfollows

2014 2013E f

Other

Explrlng wlthln one year - 1,972Explrlng wlthln two and five years Incluslve 9,M 8 10,259Explrlng In over flve years - -

Sub total 9,448 12,231

Total 9,448 12,231

Page 39




24. NET CASH FLOW FROM OPERATING ACTIVITIES

2014 2013E f

Net Incomlng resources before revaluatlons 864,359 376, 127Returns on Investments and servlclng of flnance 2,714 1,429Depreclatlon of tanglble fixed assets 54,226 -Profit on dlsposal of fixed assets - (475)Increase In stocks (6,390) (8, 167)Decrease/tlncrease) ln debtors 73,085 (81, 783)Increase In credltors 10,605 7, 722FRS 17 adlustments 47,000 30,000

Net cash inflow from operations 1,045,599 324,853

25. ANALYSIS OF CASH FLOWS FOR HEADINGS NETTED IN CASH FLOW STATEMENT

2014 2013E f

Returns on investments and servicing of finance

Interest recelved (2,714) (1,429)

2014 2013E f

Capital expenditure and financial investm entPurchase of tanglble fixed assets (574,245) (434,408)Sale of tanglble fixed assets - 4,000

Net cash outflow capital expenditure (574,245) (430,408)

26. ANALYSIS OF CHANGES IN NET FUNDS

Other1 non-cash

September Cash flow changes 31 August2013 2014

t t E tCash at bank and In hand 486,709 468,640 - 955,349

Net funus 486,799 468,640 - 955,349

Page 40




27. MEMBERS' LIABILIW

Each member of the charltable company undedakes to contrlbute to the assets of the company ln theevent of It belng wound up whlle he/she Is a member, or wlthln one year after he/she ceases to be amember, such amount as may be requlred, not exceedlng E10 for the debts and llabllltles contractedbefore he/she ceases to be a member.

2B. CONTINGENT LIABILITIES

The Academy had no contlngent llabllltles at the 31 August 2014

ln the event of Bourne RM Academy Ltd ceaslng to operate as an academy provlslons are Included In thefundlng agreement relatlng to the clawback of assets and monles pald to the academy.

29. PENSION COMMITMENTS

The Academy's employees belong to two pnnclpal penslon schemes the Teacher's Penslon Scheme forEngland and Wales (TPS) for academlc and related staft and the Local Government Penslon Scheme(LGPS) for non-teachlng staff, whlch ls managed by Llncolnshlre County Councll. Both are deflnedbeneflt schemes

The penslon costs are assessed In accordance wlth the advlce of lndependent quallfled actuarles TheIatest actuarlal valuatlon of the TPS related to the perlod ended 31 March 2004 and of the LGPS 31March 2013

There were no outstandlng or prepald contrlbutlons at elther the beglnnlng or the end of the ftnanclal

year

Teacheo' Pension Scheme

lntroduction

The Teachers' Penslon Scheme (TPS) Is a statutory, contrlbutory, defined beneflt scheme, governed bythe Teachers' Penslons Regulatlons (2010) and, from 1 Apnl 2014, by the Teachers' Penslon SchemeRegulatlons 2014 Membershlp Is automatlc for full-tlme teachers (n academles and, from 1 January2007, automatlc for teachers In pad-tlme employment followlng appolntment or a change of contract,although they are able to opt out.

The TPS fs an unfunded scheme and members contnbute on a 'pay as you go' basls - thesecontrlbutlons along wlth those made by employers are credlted to the Exchequer Retlrement and otherpenslon benefits are pald by publlc funds provlded by Parllament

The Teachers' Penslons Regulatlons requlre an annual account to be kept of recelpts and expendlture(lncludlng the cost of penslons' Increases). From 1 Aprll 2001, the account has been credlted wlth a realrate of return, whlch ls equlvalent to assumlng that the balance In the account ls Invested In notlonalInvestments that produce that real rate of return

Valuation of the Teacheo' Pension Scheme

At the last valuatlon, the contrlbutlon rate to be pald Into the TPS was assessed In two pads Flrst, astandard contrlbutlon rate (SCR) was determlned Thls ls the contrlbution, expressed as a percentage ofthe salarles of teachers and lecturers In servlce or enterlng servlce durlng the perlod over whlch thecontrlbutlon rate applles, whlch If It were pald over the entlre actlve Servlce Of these teachers and

Page 41

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29. PENSION COMMITMENTS (continued)

Iecturers would broadly defray the cost of beneflts payable In respect of that servlce Secondly, asupplementary contrlbutlon Is payable If, as a result of the actuarlal revlew, It Is found that accumulatedIlabllltles of the account for benefits to past and present teachers, are not fully covered by standardcontnbutlons to be pald ln future and by the notlonal fund bullt up from past contrlbutlons. The totalcontrlbutlon rate payable ls the sum of the SCR and the supplementary contrlbutlon rate.

The Iast valuatlon of the TPS related to the perlod 1 Aprll 2001 to 31 March 2004. The GovernmentActuary's repod of October 2006 revealed that the total llabllltles of the Scheme (penslons In paymentand the estlmated cost of future benefits) amounted to E166,500 mllllon The value of the assets(estlmated future contrlbutlons together wlth the proceeds from the notlonal Investments held at thatvaluatlon date) was E163,240 mllllon The assumed real rate of return was 3.5% In excess of prlces and2% In excess of earnlngs. The rate of real earnlngs growth was assumed to be 1.5% The assumedgross rate of return was 6.5% From 1 January 2007, the SCR was assessed at 19.7504, and thesupplementary contrlbutlon rate was assessed to be 0 75% (to balance assets and Ilabllltles as requlredby the regulatlons wlthln 15 years) Thls resulted In a total contrlbutlon rate of 20 5%, whlch translatedInto an employee contrlbutlon rate of 6.4% and employer contnbutlon rate of 14 1% payable

The Publlc Servlce Penslons BIIl provldes for future scheme valuatlons to be conducted In accordancewlth Treasury dlrectlons. The actuarlal valuatlon repod In summer 2014 takes effect from September2015.

TeacheO' Pension Scheme Changes

Lord Hutton made recommendatlons ln 2011 about how penslons can be made sustalnable andafordable, whlIst remalnlng falr to the workforce and the taxpayer. The Government accepted LordHutton's recommendatlons as the basls for consultatlon wlth trade unlons and other representatlvebodles. In March 2012 the Depadment for Educatlon publlshed proposals for the deslgn for a reformedTPS.

The key provlslons of the reformed scheme Include a penslon based on career average earnlngs, anaccrual rate of 1/57th, and a Normal Penslon Age equal to State Penslon Age, but wlth optlons to enablemembers to retlre earller or later than thelr Normal Penslon Age. Penslon benefits bullt up before 1 Aprll2015wlII be fully protected.

In addltlon, the proposed flnal agreement Includes a Government commitment that those wlthln 10 yearsof Normal Penslon Age on 1 Aprll 2012 wlll see no change to the age at whlch they can retlre, and nodecrease In the amount of penslon they recelve when they retlre, There wlll also be fudher transltlonalprotectlon, tapered over a three and a half year perlod, for people who would fall up to three and a halfyears outslde of the 10 year protectlon.

In hIs Interlm report of October 2010, Lord Hutton recommended that shod-term savlngs were alsorequlred, and that the only reallstlc way of achlevlng these was to Increase member contrlbutlons. At theSpendlng Revlew 2010 the Government announced an average Increase of 3 2 percentage polnts on thecontnbutlon rates by 2014-15 The Increases have been phased ln from Aprll 2012 on a 40 80 100%basls

The Depadment for Educatlon has contlnued to work closely wlth trade unlons and other representatlvesbodles to develop the reformatted Teachers' Penslon Scheme and regulatlons glvlng effect to It cameInto force on 1 Aprll 2014. Communlcatlons are belng rolled out and the reformatted scheme wdllcommence on 1 Aprll 2015

Under the definltlons set out In Flnanclal Repodlng Standard (FRS 17) Retlrement Beneflts, the TPS Is a

Page 42





m ultl-em ployer penslon scheme. The Academy Is unable to Identlfy Its share of the underlylng assets andîlabllltles of the scheme Accordlngly, the Academy has taken advantage of the exemptlon ln FRS 17 andhas accounted for Its contrlbutlons to the scheme as If lt were a deflned contrlbutlon Scheme TheAcademy has set out above the Informatlon avallable on the scheme

Local Government Pension Schem e

The LGPS Is a funded deflned benefit scheme, wlth assets held In separate trustee-admlnlstered fundsThe total contrlbutlon made for the year ended 31 August 2014 was 2242,000, of whlch employer'scontrlbutlons totalled :188,000 and employees' contrlbutlons totalled :54,000. The agreed contrlbutlonrates for future years are 22 8% for employers and between 5 0% and 7 5% dependlng upon lncomeoAfor employees

Parllament has agreed, at the request of the Secretary of State for Educatlon, to a guarantee that, In theevent of academy closure, outstandlng Iocal government penslon scheme Ilabllltles would be met by theDepartment for Educatlon The guarantee came Into force on 18 July 2013

The amounts recognlsed In the Balance sheet are as follows

2014 2013E f

Present value of funded obllgatlons (2,356,000) (1, 709,000)Falr value of scheme assets 1,191,000 927,000

Net llablllty (1,165,000) (782,000)

The amounts recognlsed In the Statement of flnanclal actlvltles are as follows

2014 2013E f

Current servlce cost (215,:00) (169,000)Interest on obllgatlon (84,000) (61,000)Expected return on scheme assets 64,û:: 36,000

Total (235,000) (194,000)

Actual return on scheme assets 125,û:: 104,000

Page 43

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Movements ln the present value of the defined benefit obllgatlon were as follows

2014 2013t E

Openlng deflned beneflt obllgatlon 1,709,000 1,392,000Current servlce cost 215,000 169,000Interest cost 84,000 61,000Contrlbutlons by scheme partlclpants 54,000 43,000Actuarlal Losses 310,000 44,000Benefits pald (16,000) -

Closlng desned beneflt obllgation 2,356,900 1,709,000

Movements In the falr value of the Academy's share of scheme assets

2014 2013E f

Openlng falr value of scheme assets 927,000 617,000Expected return on assets 64,000 36,000Actuanal galns and (Iosses) (26,000) 67,000Contrlbutlons by employer 188,0:0 164,000Contrlbutlons by employees 54,::û 43,000Benefits pald (16,:00) -

1,191,000 927,000

The cumulatlve amount of actuarlal galns and Iosses recognlsed In the Statement of total recognlsedgalns and Iosses was 2457,000 (2013 - î121,000)

The Academy expects to contrlbute E200,000 to Its Deflned benefit penslon scheme In 2015.

The major categones of scheme assets as a percentage of total scheme assets are as follows

2014 2013European equltles 76.00 q/o 77 00 %European bonds 13.00 % 12 00 %Property 11.00 % 1 1 00 %Cash - % - %

Prlnclpal actuarlal assumptlons at the Balance sheet date (expressed as welghted averages)

2014 2013Dlscount rate for scheme llabllltles 3.70 % 4 60 %Expected return on scheme assets at 31 August 5.80 % 6 10 %Rate of Increase In salarles 4-00 '/k 5 10 %Rate of Increase for penslons ln payment / Inflatlon 2.70 % 2 80 %Commutatlon of penslons to Iump sums 63.00 W 63 00 %

Page 44

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The current modallty assumptlons Include sufflclent allowance for future Improvements In modallty ratesThe assumed Ilfe expectatlons on retlrement age 65 are

2014 2013

Retlrlng todayMales 22.2 21 2Females 24.4 23 4

Retlrlng In 20 yearsMales 24.5 23 7Females 26.8 25 7

Amounts for the current and prevlous four perlods are as follows

Deflned beneflt penslon schemes

2014 2013 2012 2011 2010E f f f f

Defined benefltobllgatlon (2,356,8Q:) (1, 709,000) (1,392,000) - -

Scheme assets 1,191,000 927,000 617,000 - -

Deflclt (1,165,K 0) (782,000) (775,000) - -

Experlenceadjustments onscheme Ilabllltles (310,000) (44,000) (159,000) - -

Experlenceadlustments onscheme assets (26,000) 67,000 15,000 - -

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30. RELATED PARTY TRANSACTIONS

Owlng to the nature of the Academy's operatjons and the compositlon of the board of trustees belngdrawn from Iocal publlc and prlvate sector organlsatlons, transactlons may take place wlth organlsabonsIn whlch a Governor has an lnterest. AII transactlons lnvolvlng such organlsatlons are conducted at arm'sIength and In accordance w1th the Academy's financlal regulatlons and normal procurement procedures

Roger Moore, a Governor, (nvotced the school durlng the year for a Maths Department Revlew Servlcesprovlded amounted to E1,050 (2013 - E700). There were no amounts outstandlng at 31 August 2014(2013 - EnIl). The contract for thls servlce was agreed prlor to the change In Ieglslatlon. Roger Moorereslgned as a Governor of the Academy on 30 June 2014.

Roger Moore also recelved 2140 (2013 - EnlI) for Invlgllatlon servlces, as well as relmbursement ofexpenses totalllng E1 ,000 (2013 - EnIl) for whlch he personally recelved a governance grant whtch waspald Into the Academy's school fund. The grant balance stands at Enll at 31 August 2014.

Sklll Team Central, a buslness related to Chrls Kettle, the slte manager, provldes electncal englneerlngservlces to the school Transactlons totalllng :3,844 (2013 - f 66, 157) relatlng to these servlces tookplace In the year. There were no amounts outstandlng at 31 August 2014 (2013 - EnIl). Any work overf1 ,K Q undedaken by Sklll Team Central was sublect to quotatlons ln accordance wlth the Academy'sflnance manual.

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(A company Iimited by guarantee) - cscpprod.blob.core ... · Mr R Robeds,Chalr of Flnance Commlttee...

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