(A Company Limited by Guarantee) TRUSTEES' REPORT AND...

Registered number: 08208767

CHARTERS SCHOOL

(A Company Limited by Guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2016

CHARTERS SCHOOL (A Company Limited by Guarantee)

CONTENTS

Page

Reference and administrative details

1 - 2

Trustees' report

3 – 9

Governance statement

10 – 13

Statement on regularity, propriety and compliance

14

Trustees' responsibilities statement

15

Independent auditors' report

16 – 17

Independent reporting accountant's assurance report on regularity

18 – 19

Statement of financial activities

20

Balance sheet

21

Cash flow statement

22

Notes to the financial statements

23 - 45


REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 AUGUST 2016

Page 1

Members Ms Ellie Wallace (Chair) Mr Stephen Humphrey (Vice Chair) Mrs Herta Morris Mr David Evans Mr Gareth Davies Mr Mark Cooper Resigned 11 July 2016 Trustees / Governors Ms Ellie Wallace (Chair) Mr Stephen Humphrey (Vice Chair) Mr Mark Cooper Resigned 11 July 2016 Mrs Herta Morris Mr David Evans Mr Gareth Davies Cllr Christine Bateson Mr Rob Deacon Mrs Sue Gilmour-Smith Appointed 01 September 2015 Mrs Kate Mann Ms Nicola Morgan Appointed 11 October 2016 Mr Keith Pell Mr Martin Porter QC Mrs Tracy Webster Co-Headteachers Mr Martyn Parker Mr Richard Pilgrim Company Secretary N/A Senior Management Team S.Derrick Deputy Headteacher S.Harvey Deputy Headteacher D.Hartwell Assistant Headteacher P.Stephenson Assistant Headteacher V.Stroud Business Manager S.Cronk School Manager Resigned from post 31 August 2016 Company Name Charters School Principal and registered office Charters Road, Sunningdale, Ascot, Berkshire, SL5 9QY Company registered number

08208767 (England & Wales) Independent Auditors

MHA MacIntyre Hudson, Abbey Place, 24 - 28 Easton Street, High Wycombe, Buckinghamshire, HP11 1NT


REFERENCE AND ADMINISTRATIVE DETAILS (continued) FOR THE YEAR ENDED 31 AUGUST 2016

Page 2

Bankers Lloyds (Windsor & Eton Branch), PO Box 1000, BX1 1LT Solicitors Veale Wazborough Vizards, Orchard Court, Orchard Lane, Bristol, BS1 5WS


TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2016

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The trustees present their annual report together with the financial statements and auditors’ reports of the charitable company for the year 1 September 2015 to 31 August 2016. The annual report serves the purposes of both a trustees’ report, and a directors’ report under company law. The trust operates an academy for students aged 11 to 18 serving a catchment area in Sunningdale, Berkshire. It has a pupil capacity of 1650 and had a roll of 1741 in the school census in January 2016 including 502 in the sixth form of whom 71 are based at Bisham Abbey. STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution Charters School is a company limited by guarantee and an exempt charity. The charitable company’s memorandum and articles of association are the primary governing documents of the Academy Trust. The trustees (governors) of Charters Academy Trust Limited are also the directors of the charitable company for the purposes of company law. The Charitable Company is known as Charters Academy. Details of the trustees who served throughout the year are included in the Reference and Administrative Details on page 1 and 2. Members Liability 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. Trustees’ Indemnities

Trustees benefit from indemnity insurance to cover the liability of the Trustees which by virtue of any rule of law would otherwise attach to them in respect of any negligence, default or breach of trust or breach of duty of which they may be guilty in relation to the Academy Trust. The cost of this insurance in the year was £1,875. Method of Recruitment and Appointment or Election of Trustees The Governing Board regularly review the mix of skills they possess. New governors will be sought with the aim of improving the skills set of the Board. It is also the intention to draw the great majority of the Governing Board from the local community. Community governors are appointed by the Governing Board. Staff and parent governors are appointed via an election process of the staff and parents respectively. A parent governor must be the parent of a registered pupil of Charters School.

The Governing Board also has the option to appoint up to 3 co-opted governors. A governor’s term of office, apart from the Co-Headteachers, shall be 4 years. Any governor may be re-appointed or re-elected. Policies and Procedures Adopted for the Induction and Training of Trustees New governors meet with the Chair of the Governing Board to discuss the role of governors and meet the Co-Headteachers to be briefed about the school's aims, purposes and context. Individual governors attend training courses and conferences organised by appropriate bodies and the school in order to develop their knowledge and understanding of the governor's role and latest educational developments.


TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2016

Page 4

Organisational Structure The governors have responsibility for setting and monitoring the overall strategic direction of the charitable company, approving decisions reserved to governors and appointing key members of staff.

The Trustees meet as a Full Governing Board five or six times each year. All decisions reserved to the governors are taken by the Full Governing Board as a whole. Governor committees meet four or five times each year to consider detailed matters and recommend decisions to the full board. The function of all committees is to exercise the delegated powers (as listed under functions) and to report and make recommendations to the Governing Board. There are 3 such committees: Finance & Facilities, Strategic Planning & Staffing, Teaching & Learning.

Arrangements for setting pay and remuneration of key management personnel The Governors’ Remuneration Committee has been delegated responsibility by the Full Governing Board to:

1) Review the Co-Headteachers’ performance against set targets, review the Co-Headteachers’ pay and

set performance targets for the academic year.

2) Receive and consider the Co-Headteachers’ report about the performance review and

recommendations on pay for the Senior Leadership Team with regard to the previous academic year, as

well as scrutinising their targets for the new academic year.

The Committee consists of three governors, one of whom must have received appropriate performance management training. The Chair of Governors is the Chair of this committee. The remaining two members of the Committee are selected by the Governing Board at the first Full Governing Board meeting of the academic year. Staff Governors are not eligible to be members of the Committee. The School Improvement Partner (SIP) will advise the Committee when reviewing the Co-Headteachers’ performance and pay, and when setting new performance targets. The SIP will meet with the Co-Headteachers to review their own performance and discuss provisional targets and with the Committee to report on the meeting with the Co-Headteachers. This meeting will take place before the 31st December each academic year. At this same meeting the Committee will review the Co-Headteachers’ performance, make decisions about any performance awards and set targets for the coming year. Evidence will be gathered from the SIP’s report, the Co-Headteachers’ written review of their performance and discussion with the Co-Headteachers during the meeting. The Co-Headteachers will ensure that the Committee also receive written performance management reviews and targets for the Senior Leadership Team, including any pay recommendations prior to their meeting. At the meeting of the Committee, the Co-Headteachers will present their report on the Senior Leadership Team and the Committee will receive and consider any pay recommendations and targets for the academic year. When considering the Co-Headteachers’ recommendations the Committee will apply the criteria set out in the School Teachers’ Pay and Conditions Document (STPCD) and the school’s Pay Policy. All performance awards will be made in the context of affordability and the constraints on the school’s annual budget. Budgetary difficulties will not, however, be used as a reason for not making pay progression awards. The amount received from specific government grant for performance pay each year will be supplemented (or not as determined by the governing body) from the school’s own resources and the total thus allocated will be identified as a separate heading in the school’s budget. Related parties and other connected charities and organisations. One of the Co-Headteachers is a Trustee for the Tirabad Residential Educational Trust. Charters School is represented by a Deputy Headteacher at meetings of the Charters School Community Recreation Centre Trust.



Page 5

OBJECTIVES AND ACTIVITIES Objects and Aims Charters School's object ("the Object") is specifically restricted to the following: To advance for the public benefit education in the United Kingdom, in particular but without prejudice to the generality of the foregoing by establishing, maintaining, carrying on, managing and developing a school offering a broad and balanced curriculum. Objectives, Strategies and Activities The school's main targets for 2015-16 were to:

• Continue to achieve 'outstanding' value added results at Key Stage 4 and Key Stage 5

• Address the on-going issues of demographic expansion

• Develop an Environmental Policy that will impact on key aspects of the school and its community

• Provide students with more opportunities to develop essential skills and attributes for employability and life

• Where appropriate, embrace developments in communications technology

• Continue to ‘narrow the gap’ between Pupil Premium and SEN students and the rest of the cohort

• Strive to achieve the very best value for money

The Trustees use the following key measures to assess the success of the activities of the charitable company:

• Examination results measured against targets set at the beginning of each academic year and against national benchmarks

• Progress made against the School Development Plan and School Budget

• The School Self-Evaluation Form and annual Senior Leadership Team monitoring programme Co-Headteacher reports to Trustees covering the main aspects of school operations.

• External measures such as the EFA efficiency metric

Public Benefit The Trustees of the Academy Trust have complied with their duty to have due regard to the guidance on Public Benefit published by the Charity Commission in exercising their powers and duties. The activities undertaken to further the Academy Trust's purpose for the Public Benefit include:

Benefits and Beneficiaries In accordance with its charitable objectives, the charitable company strives to advance the education of the pupils attending the school. The charitable company's primary beneficiaries are therefore the pupils, and benefits to pupils are provided through continuing to maintain a high standard of education throughout the school.

Trustees' Assessment of Public Benefit In order to determine whether or not the charitable company has fulfilled its charitable objectives for public benefit, the trustees gather evidence of the success of Charters School's activities.



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STRATEGIC REPORT Achievements and Performance The academic year 2015-16 has seen Charters School continue to perform at an impressive standard in terms of attainment and progress over the entire 11-18 age range. This year's 'A' level results further improved on the high standards of the last few years with 58% of entries gaining grades A*-B including a significant number of students gaining A*/A grades and 18 successful applications to Oxford and Cambridge Universities in the last four years. This year's results have given our Year 13 cohort the opportunities for their next move whether it be university, work or a 'gap year'. In terms of ALPs progress measures against the national dataset, over three years, Charters is in the top 10% of A-level providers. Charters has established itself over a period of time as one of the best performing state schools in the country when it comes to GCSE results and this year's performance is in line with this successful trend with 78% of Year 11 students obtaining at least 5 GCSEs graded A*-C including both English and Mathematics. Against the new P8 progress measures, Charters adds over a third of a grade on average to every student’s GCSE qualification compared to the national figures. Disadvantaged students’ results reveal that they perform equally as well as non-disadvantaged students nationally although we aim to reduce our in-school difference between disadvantaged and non-disadvantaged students’ success rates still further. Key Performance Indicators The EFA financial efficiency metric in 2016 placed the school in the first decile. This means that when compared with 50 statistically similar schools, Charters was more efficient, measured by student progress per pound of income, than 45 of those schools. In 2015-16, student applications for places at the school were buoyant. This is due to high level on-going student examination success rates, strong and stable leadership at all levels and an increasing demographic trend. Attendance rates continue to be high and exclusions are very low in comparison with national benchmarks. Plans are well underway to admit an additional 30 students each year from 2017 to meet local demand. Related to this, the school is to be supported by the LA who are providing new Maths and Science accommodation for completion by September 2018. The fabric of the site and buildings has benefited from successful CIF bids to replace the roof on the main hall and adjacent buildings. A bid to replace the school's main boilers has been successful and supported with a Salix loan, will give the academy significant savings in fuel costs. This work is now complete. These developments will help to maintain the school as an attractive proposition in terms of student and staff recruitment and the increase in the pupil admission number will provide increasing net income in the years ahead. Going Concern The Governing Board has a reasonable expectation that Charters School has adequate resources to continue in operational existence for the foreseeable future although this year there is significantly more pressure on finances. After making appropriate enquiries, the board of trustees has a reasonable expectation that the academy trust has adequate resources to continue in operational existence for the foreseeable future. For this reason it continues to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Statement of Accounting Policies.



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FINANCIAL REVIEW Most of Charters School's income comes from the Educational Funding Agency (EFA) in the form of recurrent grants, the use of which is restricted to particular purposes. These grants and the associated expenditure are shown as restricted general funds in the statement of financial activities. Charters School also receives grants from the EFA for capital expenditure and in accordance with the Charities Statement of Recommended Practice (SORP) 'Accounting and Reporting by Charities', such grants are shown in the Statement of Financial Activities as restricted income in the fixed asset fund. The restricted fixed asset fund balance is reduced by annual depreciation charges over the expected useful life of the assets concerned. Other sources of income are 'unrestricted' and these are mainly monies collected from parents for learning resources, school trips, outings and other extra-curricular activities. Also included in 'unrestricted' funds are voluntary donations made by parents to support school life, lettings income and surplus cash funds transferred from RBWM at the time of conversion. Charters School held fund balances at 31 August 2016 of £18,782,064 comprising £(4,311,458) of restricted funds including a pension reserve deficit of £(4,120,000), restricted fixed assets of £22,610,636 and unrestricted funds of £482,886. The Trustees believe the fund balances are adequate to provide sufficient working capital in times of possible future funding turbulence, to provide a cushion to deal with unexpected emergencies and to fulfil the objectives detailed in the School Development Plan. As detailed in note 23 to the accounts, the Trust has taken on a deficit in the Local Government Pension Scheme. This will result in the school having to make additional contributions in future years. The Trustees believe they will be able to fund this deficit in the coming years. Reserves Policy The Trust holds reserves to provide sufficient working capital in times of possible future funding turbulence, to provide a cushion to deal with unexpected emergencies and to fulfil the objectives detailed in the School Development Plan. Charity Reserves and Defined Benefit Pension Schemes. At 31 August 2016 the total funds comprised:

Unrestricted 482,886 Restricted: Fixed asset funds 22,610,636 GAG 30,910 Pension reserve (4,120,000) Other (222,368) ----------------------------------------------------------

18,782,064 = ===============================================-----------=====-----------

The deficit on the pension reserve relates to the non- teaching staff pension scheme where, unlike the teachers scheme, separate assets are held to fund future liabilities as discussed in note 23. The deficit can be met in the longer term from any combination of increased employer or employee contributions, increased government funding or changes to scheme benefits. The restricted funds will be spent in accordance with the terms of the particular funds. Investment Policy The Trustees' investment powers are set down in the Memorandum and Articles of Association which permit the investment of monies of Charters School that are not immediately required for its purposes in such investments as may be thought fit subject to any restrictions which may from time to time be imposed or required by law.



Page 8

Investment Policy (continued) Charters School's current policy is to invest surplus funds in short-term cash deposits for fixed periods of no longer than six weeks, although exceptions may occur. Periodically, the management will review interest rates and compare with other investment opportunities. Any change in policy requires the approval of Trustees.

Principal Risks and Uncertainties The Academy Trust practices through its Governing Board and the constituted committees, risk management principles. Any major risks highlighted at any sub-committee are brought to the main Board with proposed mitigating actions and they continue to be reported until the risk is adequately mitigated.

The Governing Board accepts managed risk as an inevitable part of its operations but maintains an objective not to run unacceptable levels of risk in any area. The subjective nature of this process requires major risks to be resolved by the Governing Body collectively, whilst more minor risks are dealt with by senior executive officers.

PLANS FOR FUTURE PERIODS

The future development of Charters School is detailed in the School Development Plan, approved by the Governing Board. In the Plan, there are clear objectives with specific and measurable success criteria laid out. These are evaluated by governors regularly. At a high level, the school’s future plans centre on five areas with key desired outcomes, namely:

Financial Stability

• A sustainable and efficient school in the long term

• Strive for value for money

• Seek support to fund capital projects

• Develop a secure financial plan for Tirabad

Academic Achievement

• Be in the top 10% for progress 8 measures

• Be in the top 10% for attainment 8 measures

• Narrow the Pupil Premium gap versus non PP students

• Be in the top 10% of all schools nationally for progress in the sixth form

Our role in the Community

• Continue to adapt to the demographic changes in the area

• Share our facilities with the wider community

• Support the training and personal and professional development of members of the school

community – students, teachers and parents where relevant.

• Promote our values of Unity, Respect, Excellence

The Learning Environment

• Create a 21st century learning environment for all students

• Encourage the use of new technologies

• Offer a curriculum that meets the needs of all students

• Develop a constantly improving teaching profile and capability

Preparing our students

• Embrace the digital age

• Prepare the students with the skills, behaviours and values for a fulfilling and rewarding future

• Actively promote and encourage healthy living and physical fitness.

• Safeguard all students while they are in our care



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PLANS FOR FUTURE PERIODS (continued) Central to the successful delivery of these outcomes, is the school’s ability to recruit and retain a high quality teaching and associate staff workforce and the maintenance of good facilities in which to learn and teach. By September 2018 we anticipate the construction of a new 13 room Maths and Science classroom block to be completed in order to accommodate the planned increase in the school roll. FUNDS HELD AS CUSTODIAN TRUSTEE ON BEHALF OF OTHERS Charters School does not hold cash or assets as a custodian for any third party. AUDITOR

MHA, Macintyre Hudson has been appointed the auditor to the charitable company and have indicated their

willingness to continue in office. In so far as the trustees are aware:

• there is no relevant audit information of which the charitable company’s auditor is unaware

• the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

Trustees’ report, incorporating a strategic report, was approved by order of the board of trustees, as the company directors, on 12 December 2016 and signed on the board’s behalf by: …………………… E Wallace Chair of Trustees


GOVERNANCE STATEMENT FOR THE YEAR ENDED 31 AUGUST 2016

Page 10

The Academy Trust has an established Senior Leadership Team that has instituted a thorough and

effective system of internal control measures to ensure the appropriate management of the resources for

which we are responsible.

SCOPE OF RESPONSIBILITY As trustees we acknowledge we have overall responsibility for ensuring that Charters School 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 one of the Co-Headteacher (Richard Pilgrim), as accounting officer, for ensuring financial controls conform with the requirements of both propriety and good financial management and in accordance with the requirements and responsibilities assigned to it in the funding agreement between Charters School and the Secretary of State for Education. He is also responsible for reporting to the board of trustees any material weaknesses or breakdowns in internal control. GOVERNANCE 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 4 times during the year. Attendance during the year at meetings of the board of trustees was as follows: Trustee Meetings attended Out of a possible Ms Ellie Wallace (Chair) 4 4 Mr Stephen Humphrey (Vice Chair) 4 4 Mr Mark Cooper 3 3 Mrs Herta Morris 4 4 Mr David Evans 3 4 Mr Gareth Davies 3 4 Cllr Christine Bateson 2 4 Mr Rob Deacon 4 4 Mrs Sue Gilmour-Smith 4 4 Miss Zoe Kear 0 1 Mrs Kate Mann 3 4 Mr Keith Pell 3 4 Mr Martin Porter QC 3 4 Mrs Tracy Webster 2 4 Co-Headteachers: Mr Martyn Parker 4 4 Mr Richard Pilgrim 4 4

The Strategic Performance Committee is a sub-committee of the main board of trustees. Its purpose is to consider matters with the potential to affect the strategic direction of Charters School and to ensure that the school is staffed sufficiently for the fulfilment of the school‘s development plan and the effective operation of the school.


GOVERNANCE STATEMENT (continued) FOR THE YEAR ENDED 31 AUGUST 2016

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Attendance at meetings in the year was as follows:

Trustee Meetings attended Out of a possible Mr Gareth Davies 3 3 Mr Stephen Humphrey 3 3 Mrs Herta Morris 3 3 Ms Ellie Wallace 3 3 Mr Martyn Parker 3 3 Mr Richard Pilgrim 3 3

The Finance and Facilities Committee is a sub-committee of the main board of trustees. Its purpose is to ensure that the Academy Trust complies with the EFA Academies Financial Handbook, to provide guidance and assistance to the Co-Headteachers and Governors in all matters relating to budgeting and finance, and to provide support and guidance for the governing board and the Co-Headteachers on all matters relating to the maintenance and development of the premises and grounds, including Health and Safety.

Attendance at meetings in the year was as follows:

Trustee Meetings attended Out of a possible Cllr Christine Bateson 3 5 Mr David Evans 5 5 Mrs Herta Morris 5 5 Mr Keith Pell 3 5 Ms Ellie Wallace 4 5 Mr Chris Hammans 2 2

REVIEW OF VALUE FOR MONEY

As accounting officer the Co-Headteacher, Richard Pilgrim, has responsibility for ensuring that Charters School delivers good value in the use of public resources. The accounting officer understands that value for money refers to the educational and wider societal outcomes achieved in return for the taxpayer resources received.

The accounting officer considers how the trust’s use of its resources has provided good value for money during each academic year, and reports to the board of trustees where value for money can be improved, including the use of benchmarking data where appropriate. The accounting officer for the academy trust has delivered improved value for money during the year by taking a wide range of steps, linked to its Development Plan, to sustain the Academy's sustained excellent performance as measured by outcomes for students. A relentless focus on the quality of teaching and support for the core subjects of English and Mathematics has resulted in over 82% of Year 11 students obtaining at least a C grade in GCSE Mathematics and 87% in English. At Key Stage 4 and 5 outcomes have been significantly above national averages both in terms of attainment and progress. Our most able students continue to flourish via our Aspiring High programme with 11 successful applications to Oxford and Cambridge Universities in the last 3 years.

In terms of financial efficiency, the school is in the top decile for value-added per pound of taxpayers’ money spent



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THE PURPOSE OF THE SYSTEM OF INTERNAL CONTROL

The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk of failure to achieve policies, aims and objectives. It can, therefore, only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an on-going process designed to identify and prioritise the risks to the achievement of academy trust policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically. The system of internal control has been in place in Charters School for the period ending 31 August 2016 and up to the date of approval of the annual report and financial statements.

The academy has found it necessary to reduce course and staffing levels in line with increasing costs and reduced levels of Post-16 funding. It has also continued to rationalise some leadership posts to distribute tasks more efficiently. We expect to continue to make more significant changes to our course offers where economic viability is marginal.

Careful analysis of the performance of students in receipt of the Pupil Premium and Bursary Fund has led to more effective planning of their financial support. Outcomes for these students are the same in comparison with non-disadvantaged students nationally.

Finally, the academy has appointed a Development Team for a trial period in order to grow links with our Alumni and to find opportunities to bid for funding from grant making trusts to support the work of the academy in the next few years.

CAPACITY TO HANDLE RISK

The board of trustees has reviewed the key risks to which Charters School is exposed together with the operating, financial and compliance controls that have been implemented to mitigate those risks. The board of trustees confirm that there is a formal on-going process for identifying, evaluating and managing the Charters School’s significant risks. This has been in place for the twelve month period to 31 August 2016 and up to the date of approval of the annual report and financial statements. This process is regularly reviewed by the board of trustees.

THE RISK AND CONTROL FRAMEWORK

The academy trust’s system of internal financial control is based on a framework of regular management information and administrative procedures including the segregation of duties and a system of delegation and accountability. In particular it includes:

• comprehensive budgeting and monitoring systems with an annual budget and periodic financial reports

which are reviewed and agreed by the board of trustees

• regular reviews by the finance and general purposes committee of reports which indicate financial

performance against the forecasts and of major purchase plans, capital works and expenditure

programmes

• setting targets to measure financial and other performance

• clearly defined purchasing (asset purchase or capital investment) guidelines

• delegation of authority and segregation of duties

• identification and management of risks

The board of trustees has considered the need for a specific internal audit function and has appointed an Audit Committee.



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REVIEW OF EFFECTIVENESS As accounting officer the Co-Headteacher, Richard Pilgrim 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 Audit Committee

• the work of the external auditor

• the financial management and governance self-assessment process

• the work of the executive managers within the academy trust who have responsibility for the

development and maintenance of the internal control framework

The accounting officer has been advised of the implications of the result of their review of the system of internal control by the Audit Committee and a plan to address weaknesses and ensure continuous improvement of the system is in place. Approved by order of the members of the board of trustees on 12 December 2016 and signed on its behalf by: …………………………………………… …………………………………………… E Wallace R Pilgrim Chair of Trustees Accounting Officer


STATEMENT ON REGULARITY, PROPRIETY AND COMPLIANCE FOR THE YEAR ENDED 31 AUGUST 2016

Page 14

As accounting officer of Charters Academy Trust I have considered my responsibility to notify Charters School Trust Governing Board and the Education Funding Agency of material irregularity, impropriety and non-compliance with EFA terms and conditions of funding, under the funding agreement in place between Charters School and the Secretary of State for Education. As part of my consideration I have had due regard to the requirements of the Academies Financial Handbook 2015. I confirm that I and the academy trust board of trustees are able to identify any material irregular or improper use of funds by Charters School, or material non-compliance with the terms and conditions of funding under the Charters School Trust’s funding agreement and the Academies Financial Handbook 2015. I confirm that no instances of material irregularity, impropriety or funding non-compliance have been discovered to date. If any instances are identified after the date of this statement, these will be notified to the board of trustees and EFA. ……………………. R Pilgrim Accounting Officer 12 December 2016

CHARTERS SCHOOL


STATEMENT OF TRUSTEES' RESPONSIBILITIESFOR THE YEAR ENDED 31 AUGUST 2016

The Trustees (who act as governors of Charters School and are also the directors of the charitable companyfor the purposes of company law) are responsible for preparing the Strategic Report, the Trustees' Report andthe financial statements in accordance with the Annual Accounts Direction issued by the Education FundingAgency, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) andapplicable law and regulations. Company law requires the Trustees to prepare financial statements for each financial year. Under company lawthe Trustees must not approve the financial statements unless they are satisfied that they give a true and fairview of the state of affairs of the charitable company and of its incoming resources and application ofresources, including its income and expenditure, for that period. In preparing these financial statements, theTrustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles of the Charities SORP 2015 and the Academies' Accounts Direction

2015 to 2016;

• make judgments and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any

material departures disclosed and explained in the financial statements;

• prepare the financial statements 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 explainthe charitable company's transactions and disclose with reasonable accuracy at any time the financial positionof the charitable company and enable them to ensure that the financial statements comply with the CompaniesAct 2006. They are also responsible for safeguarding the assets of the charitable company and hence fortaking 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 appliesfinancial and other controls, which conform with the requirements both of propriety and of good financialmanagement. They are also responsible for ensuring grants received from the EFA/DfE have been applied forthe purposes intended. The Trustees are responsible for the maintenance and integrity of the corporate and financial informationincluded on the charitable company's website. Legislation in the United Kingdom governing the preparation anddissemination of financial statements may differ from legislation in other jurisdictions. Approved by order of the members of the board of trustees on 12 December 2016 and signed on its behalf by:

E WallaceChair of Trustees

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CHARTERS SCHOOL


INDEPENDENT AUDITORS' REPORT ON THE FINANCIAL STATEMENTS TO THE MEMBERS OFCHARTERS SCHOOL

We have audited the financial statements of Charters School for the year ended 31 August 2016 which comprisethe Statement of Financial Activities Incorporating Income and Expenditure Account, the Balance Sheet, theStatement of Cash Flows and the related notes. The financial reporting framework that has been applied in theirpreparation is applicable law, United Kingdom Accounting Standards (United Kingdom Generally AcceptedAccounting Practice) including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic ofIreland" and the Academies Accounts Direction 2015 to 2016 issued by the Education Funding Agency. This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitablecompany's members those matters we are required to state to them in an Auditors' Report and for no otherpurpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other thanthe charitable company and its members, as a body, for our audit work, for this report, or for the opinion we haveformed. RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND AUDITORS As explained more fully in the Statement of Trustees' Responsibilities, the Trustees (who are also the directors ofthe Academy for the purposes of company law) are responsible for the preparation of the financial statementsand for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicablelaw and International Standards on Auditing (UK and Ireland). Those standards require us to comply with theAuditing Practices Board's Ethical Standards for Auditors. SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient togive reasonable assurance that the financial statements are free from material misstatement, whether caused byfraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Academy'scircumstances and have been consistently applied and adequately disclosed; the reasonableness of significantaccounting estimates made by the Trustees; and the overall presentation of the financial statements. In addition,we read all the financial and non-financial information in the Trustees' Report to identify material inconsistencieswith the audited financial statements and to identify any information that is apparently materially incorrect basedon, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If webecome aware of any apparent material misstatements or inconsistencies we consider the implications for ourreport.

OPINION ON FINANCIAL STATEMENTS In our opinion the financial statements: • give a true and fair view of the state of the charitable company's affairs as at 31 August 2016 and of its

incoming resources and application of resources, including its income and expenditure, for the year then

ended; • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting

Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006, the Charities SORP

2015 and the Academies Accounts Direction 2015 to 2016 issued by the Education Funding Agency.

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CHARTERS SCHOOL


INDEPENDENT AUDITORS' REPORT ON THE FINANCIAL STATEMENTS TO THE MEMBERS OFCHARTERS SCHOOL

OPINION ON OTHER MATTER PRESCRIBED BY THE COMPANIES ACT 2006 In our opinion the information given in the Trustees' Report, incorporating the Strategic Report, for the financialyear for which the financial statements are prepared is consistent with the financial statements. MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION We have nothing to report in respect of the following matters where the Companies Act 2006 requires us toreport to you if, in our opinion: • adequate accounting records have not been kept; or • the financial statements are not in agreement with the accounting records and returns; or • certain disclosures of Trustees' remuneration specified by law are not made; or • we have not received all the information and explanations we require for our audit.

BIANCA SILVA BA ACA DChA (Senior Statutory Auditor) for and on behalf of MHA MacIntyre Hudson Chartered AccountantsStatutory Auditors Abbey Place24-28 Easton StreetHigh WycombeBuckinghamshireHP11 1NT

Date: 13 December 2016

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CHARTERS SCHOOL


INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO CHARTERSSCHOOL AND THE EDUCATION FUNDING AGENCY

In accordance with the terms of our engagement letter dated 10 July 2015 and further to the requirements of theEducation Funding Agency (EFA) as included in the Academies Accounts Direction 2015 to 2016, we havecarried out an engagement to obtain limited assurance about whether the expenditure disbursed and incomereceived by Charters School during the year 1 September 2015 to 31 August 2016 have been applied to thepurposes identified by Parliament and the financial transactions conform to the authorities which govern them.

This report is made solely to Charters School and the EFA in accordance with the terms of our engagementletter. Our work has been undertaken so that we might state to Charters School and the EFA those matters weare required to state in a report and for no other purpose. To the fullest extent permitted by law, we do not acceptor assume responsibility to anyone other than Charters School and the EFA, for our work, for this report, or forthe conclusion we have formed.

RESPECTIVE RESPONSIBILITIES OF CHARTERS SCHOOL'S ACCOUNTING OFFICER AND THEREPORTING ACCOUNTANT

The accounting officer is responsible, under the requirements of Charters School's funding agreement with theSecretary of State for Education dated 20 October 2011, and the Academies Financial Handbook extant from 1September 2015, for ensuring that expenditure disbursed and income received is applied for the purposesintended 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 ethicalguidance and are to obtain limited assurance and report in accordance with our engagement letter and therequirements of the Academies Accounts Direction 2015 to 2016. We report to you whether anything has cometo our attention in carrying out our work which suggests that in all material respects, expenditure disbursed andincome received during the year 1 September 2015 to 31 August 2016 have not been applied to purposesintended by Parliament or that the financial transactions do not conform to the authorities which govern them.

APPROACH

We conducted our engagement in accordance with the Academies Accounts Direction 2015 to 2016 issued bythe EFA. 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 andexplanations in order to provide us with sufficient appropriate evidence to express a negative conclusion onregularity.

A limited assurance engagement is more limited in scope than a reasonable assurance engagement andconsequently does not enable us to obtain assurance that we would become aware of all significant matters thatmight 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 theAcademy's income and expenditure.

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CHARTERS SCHOOL


INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO CHARTERSSCHOOL AND THE EDUCATION FUNDING AGENCY (continued)

The work undertaken to draw to our conclusion includes:

• reviewing the minutes of the meetings of the Governing Body and other evidence made available to us,relevant to our consideration of regularity;

• a review of the objectives and activities of the Academy, with reference to the income streams and other information available to us as auditors of the Academy;

• testing of a sample of payroll payments to staff;

• testing of a sample of payments to suppliers and other third parties;

• testing of a sample of grants received and other income streams;

• evaluating the internal control procedures and reporting lines, and testing as appropriate; and

• making appropriate enquiries of the Accounting Officer.

CONCLUSION

In the course of our work, nothing has come to our attention which suggests that in all material respects theexpenditure disbursed and income received during the year 1 September 2015 to 31 August 2016 have not beenapplied to purposes intended by Parliament and the financial transactions do not conform to the authorities whichgovern them.

Reporting Accountant

MHA MacIntyre Hudson Chartered Accountants Abbey Place24-28 Easton StreetHigh WycombeBuckinghamshireHP11 1NT

13 December 2016

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CHARTERS SCHOOL


STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING INCOME AND EXPENDITURE ACCOUNTFOR THE YEAR ENDED 31 AUGUST 2016

Unrestrictedfunds

Restrictedfunds

Restrictedfixed asset

fundsTotal

fundsTotalfunds

Note2016

£2016

£2016

£2016

£2015

£

INCOME FROM:

Donations and capital grants 2 26,329 26,731 209,535 262,595 193,938Charitable activities 5 612,910 8,532,594 - 9,145,504 9,561,540Other trading activities 3 27,817 - - 27,817 57,244Investments 4 6,969 - - 6,969 5,627

TOTAL INCOME 674,025 8,559,325 209,535 9,442,885 9,818,349

EXPENDITURE ON:

Charitable activities 620,041 8,918,384 780,396 10,318,821 10,722,280

TOTAL EXPENDITURE 6

620,041 8,918,384 780,396 10,318,821 10,722,280

NET INCOME /(EXPENDITURE) BEFORETRANSFERS

53,984

(359,059)

(570,861)

(875,936)

(903,931)

Transfers between Funds 19 - (369,495) 369,495 - -

NET INCOME /(EXPENDITURE) BEFOREOTHER RECOGNISEDGAINS AND LOSSES

53,984

(728,554)

(201,366)

(875,936)

(903,931)

Actuarial gains/(losses) ondefined benefit pensionschemes 23 - (1,602,000) - (1,602,000) 69,000

NET MOVEMENT IN FUNDS

53,984

(2,330,554)

(201,366)

(2,477,936)

(834,931) RECONCILIATION OF FUNDS:

Total funds brought forward 428,902 (1,980,904) 22,812,002 21,260,000 22,094,931

TOTAL FUNDS CARRIEDFORWARD

482,886 (4,311,458)

22,610,636

18,782,064

21,260,000

The notes on pages 23 to 45 form part of these financial statements.

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CHARTERS SCHOOL

(A Company Limited by Guarantee)REGISTERED NUMBER: 08208767

BALANCE SHEETAS AT 31 AUGUST 2016

2016 2015Note £ £ £ £

FIXED ASSETS Tangible assets 14 22,115,506 22,377,073 CURRENT ASSETS Stocks 15 - 41,631 Debtors 16 266,852 193,288 Cash at bank and in hand 1,426,759 1,353,122

1,693,611 1,588,041 CREDITORS: amounts falling due within

one year 17 (651,323) (419,114)

NET CURRENT ASSETS 1,042,288 1,168,927

TOTAL ASSETS LESS CURRENT LIABILITIES 23,157,794 23,546,000 CREDITORS: amounts falling due after

more than one year 18 (255,730) -

NET ASSETS EXCLUDING PENSIONSCHEME LIABILITIES 22,902,064 23,546,000

Defined benefit pension scheme liability 23 (4,120,000) (2,286,000)

NET ASSETS INCLUDING PENSIONSCHEME LIABILITIES 18,782,064 21,260,000

FUNDS OF THE ACADEMY Restricted income funds: Restricted income funds 19 (191,458) 305,096 Restricted fixed asset funds 19 22,610,636 22,812,002

Restricted income funds excluding pensionliability 22,419,178 23,117,098

Pension reserve (4,120,000) (2,286,000)

Total restricted income funds 18,299,178 20,831,098 Unrestricted income funds 19 482,886 428,902

TOTAL FUNDS

18,782,064 21,260,000

The financial statements were approved by the Trustees, and authorised for issue, on 12 December 2016 andare signed on their behalf, by:

E WallaceChair of Trustees

The notes on pages 23 to 45 form part of these financial statements.

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CHARTERS SCHOOL


STATEMENT OF CASH FLOWSFOR THE YEAR ENDED 31 AUGUST 2016

2016 2015Note £ £

Cash flows from operating activities Net cash provided by operating activities 21 66,429 548,083

Cash flows from investing activities:Investment income 6,969 5,627Purchase of tangible fixed assets (518,896) (744,874)Capital grants from DfE/EFA 209,535 -

Net cash used in investing activities (302,392) (739,247)

Cash flows from financing activities:Cash inflows from new borrowing 309,600 -

Net cash provided by financing activities 309,600 -

Change in cash and cash equivalents in the year 73,637 (191,164)

Cash and cash equivalents brought forward 1,353,122 1,544,286

Cash and cash equivalents carried forward 22 1,426,759 1,353,122

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CHARTERS SCHOOL


NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 AUGUST 2016

1. ACCOUNTING POLICIES

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.

1.1 Basis of preparation of financial statements

The financial statements of the academy trust, which is a public benefit entity under FRS 102, havebeen prepared under the historical cost convention in accordance with the Financial ReportingStandard Applicable in the UK and Republic of Ireland (FRS 102), the Accounting and Reporting byCharities: Statement of Recommended Practice applicable to charities preparing their accounts inaccordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (Charities SORP (FRS 102)), the Academies Accounts Direction 2015 to 2016 issued by EFA,the Charities Act 2011 and the Companies Act 2006.

Charters School constitutes a public benefit entity as defined by FRS 102.

First time adoption of FRS 102

These financial statements are the first financial statements of Charters School prepared inaccordance with Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable inthe UK and Republic of Ireland’ (FRS 102) and the Charities SORP 2015 (SORP 2015). Thefinancial statements of Charters School for the year ended 31 August 2015 were prepared inaccordance with previous Generally Accepted Accounting Practice (‘UK GAAP’) and SORP 2005.

Some of the FRS 102 recognition, measurement, presentation and disclosure requirements andaccounting policy choices differ from previous UK GAAP. Consequently, the Trustees haveamended certain accounting policies to comply with FRS 102 and SORP 2015.

Reconciliations to previous UK GAAP for the comparative figures are included in note 27.

1.2 Fund accounting

Unrestricted income funds represent those resources which may be used towards meeting any ofthe charitable objects of the Academy at the discretion of the Trustees.

Restricted fixed asset funds are resources which are to be applied to specific capital purposesimposed by the Department for Education where the asset acquired or created is held for a specificpurpose.

Restricted general funds comprise all other restricted funds received with restrictions imposed by thefunder and include grants from the Department of Education and the Education Funding Agency.

Investment income, gains and losses are allocated to the appropriate fund.

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1. ACCOUNTING POLICIES (continued)

1.3 Income

All income is recognised once the Academy has entitlement to the income, it is probable that theincome will be received and the amount of income receivable can be measured reliably.

Grants are included in the Statement of Financial Activities Incorporating Income and ExpenditureAccount on a receivable basis. The balance of income received for specific purposes but notexpended during the period is shown in the relevant funds on the Balance Sheet. Where income isreceived in advance of entitlement of receipt, its recognition is deferred and included in creditors asdeferred income. Where entitlement occurs before income is received, the income is accrued.

General Annual Grant is recognised in full in the Statement of Financial Activities IncorporatingIncome and Expenditure Account in the year for which it is receivable and any abatement in respectof the period is deducted from income and recognised as a liability. Capital grants are recognisedwhen there is entitlement and are not deferred over the life of the asset on which they are expended.Unspent amounts of capital grant are reflected in the balance in the restricted fixed asset fund.

Goods donated for resale are included at fair value, being the expected proceeds from sale less theexpected costs of sale. If it is practical to assess the fair value at receipt, it is recognised in stockand ‘Income from other trading activities’. Upon sale, the value of the stock is charged against‘Income from other trading activities’ and the proceeds are recognised as ‘Income from other tradingactivities’. Where it is impractical to fair value the items due to the volume of low value items theyare not recognised in the financial statements until they are sold. This income is recognised within‘Income from other trading activities’.

Where the donated good is a fixed asset it is measured at fair value, unless it is impractical tomeasure this reliably, in which case the cost of the item to the donor should be used. The gain isrecognised as income from donations and a corresponding amount is included in the appropriatefixed asset category and depreciated over the useful economic life in accordance with the academytrust‘s accounting policies.

Donations are recognised on a receivable basis where there are no performance related conditionsand there is probability of receipt and the amount can be reliably measured.

Other income, including the hire of facilities, is recognised in the period in which it is receivable andto the extent the goods have been provided or on completion of the service.

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1.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economicbenefit to a third party, it is probable that a transfer of economic benefits will be required insettlement and the amount of the obligation can be measured reliably. Expenditure is classified byactivity. 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 singleactivity are allocated directly to that activity. Shared costs which contribute to more than one activityand support costs which are not attributable to a single activity are apportioned between thoseactivities on a basis consistent with the use of resources. Central staff costs are allocated on thebasis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Charitable activities are costs incurred on the Academy's educational operations, including supportcosts and costs relating to the governance of the Academy apportioned to charitable activities.

All resources expended are inclusive of irrecoverable VAT.

1.5 Going concern

The Trustees assess whether the use of going concern is appropriate, i.e. whether there are anymaterial uncertainties related to events or conditions that may cast significant doubt on the ability ofthe Academy to continue as a going concern. The Trustees make this assessment in respect of aperiod of at least one year from the date of authorisation for issue of the financial statements andhave concluded that the academy trust has adequate resources to continue in operational existencefor the foreseeable future and there are no material uncertainties about the academy trust’s ability tocontinue as a going concern, thus they continue to adopt the going concern basis of accounting inpreparing the financial statements.

1.6 Tangible fixed assets and depreciation

All assets costing more than £3,000 are capitalised.

Where tangible fixed assets have been acquired with the aid of specific grants, either from thegovernment or from the private sector, they are included in the Balance Sheet at cost anddepreciated over their expected useful economic life. Where there are specific conditions attachedto the funding requiring the continued use of the asset, the related grants are credited to a restrictedfixed asset fund in the Statement of Financial Activities Incorporating Income and ExpenditureAccount and carried forward in the Balance Sheet. Depreciation on the relevant assets is chargeddirectly to the restricted fixed asset fund in the Statement of Financial Activities Incorporating Incomeand Expenditure Account.

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicatethat the carrying value of any fixed asset may not be recoverable. Shortfalls between the carryingvalue of fixed assets and their recoverable amounts are recognised as impairments. Impairmentlosses are recognised in the Statement of Financial Activities Incorporating Income and ExpenditureAccount.

Assets in the course of construction are included at cost. Depreciation on these assets is notcharged until they are brought into use.

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Tangible fixed assets and depreciation (continued)

Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment.Depreciation is not charged on freehold land. Depreciation is provided at rates calculated to write offthe cost of fixed assets, less their estimated residual value, over their expected useful lives on thefollowing bases:

Long leasehold land and buildings - Life of leaseBuildings and building

modifications- 50 years on cost

Furniture, fittings and equipment - 10 years on costMotor vehicles - 5 years on costComputer equipment - 3 years on cost

1.7 Operating leases

Rentals under operating leases are charged to the Statement of Financial Activities IncorporatingIncome and Expenditure Account on a straight line basis over the lease term.

1.8 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance forobsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion offixed and variable overheads.

1.9 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measuredreliably by the Academy; this is normally upon notification of the interest paid or payable by the Bank.

1.10 Taxation

The Academy is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.Accordingly, the Academy is potentially exempt from taxation in respect of income or capital gainsreceived within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains areapplied exclusively to charitable purposes.

1.11 Debtors

Trade and other debtors are recognised at the settlement amount. Prepayments are valued at theamount prepaid.

1.12 Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a shortmaturity of three months or less from the date of acquisition or opening of the deposit or similaraccount.

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1.13 Liabilities and provisions

Liabilities and provisions are recognised when there is an obligation at the Balance Sheet date as aresult 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 amountthat the Academy anticipates it will pay to settle the debt or the amount it has received as advancedpayments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Wherethe effect of the time value of money is material, the provision is based on the present value of thoseamounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. Theunwinding of the discount is recognised within interest payable and similar charges.

1.14 Financial instruments

The Academy Trust only has financial assets and financial liabilities of a kind that qualify as basicfinancial instruments. Basic financial instruments are initially recognised at transaction value andsubsequently measured at their settlement value.

1.15 Pensions

Retirement benefits to employees of the Academy are provided by the Teachers' Pension Scheme("TPS") and the Local Government Pension Scheme ("LGPS"). These are defined benefit schemesand the assets are held separately from those of the Academy.

The TPS is an unfunded scheme and contributions are calculated so as to spread the cost ofpensions over employees’ working lives with the Academy in such a way that the pension cost is asubstantially level percentage of current and future pensionable payroll. The contributions aredetermined by the Government Actuary on the basis of quadrennial valuations using a prospectiveunit credit method. As stated in note 23, the TPS is a multi-employer scheme and there isinsufficient information available to use defined benefit accounting. The TPS is therefore treated asa defined contribution scheme for accounting purposes and the contributions recognised in theperiod to which they relate.

The LGPS is a funded scheme and the assets are held separately from those of the academy trustin separate trustee administered funds. Pension scheme assets are measured at fair value andliabilities are measured on an actuarial basis using the projected unit credit method and discountedat a rate equivalent to the current rate of return on a high quality corporate bond of equivalent termand currency to the liabilities. The actuarial valuations are obtained at least triennially and areupdated at each Balance Sheet date. The amounts charged to operating surplus are the currentservice 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 benefitliability/asset is also recognised in the Statement of Financial Activities Incorporating Income andExpenditure Account and comprises the interest cost on the defined benefit obligation and interestincome on the scheme assets, calculated by multiplying the fair value of the scheme assets at thebeginning of the period by the rate used to discount the benefit obligations. The difference betweenthe interest income on the scheme assets and the actual return on the scheme assets is recognisedin other recognised gains and losses.

Actuarial gains and losses are recognised immediately in other recognised gains and losses.

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1.16 Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience andother factors, including expectations of future events that are believed to be reasonable under thecircumstances.

Critical accounting estimates and assumptions:

The Academy trust makes estimates and assumptions concerning the future. The resultingaccounting 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 thecarrying 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 anumber of factors that are determined on an actuarial basis using a variety of assumptions. Theassumptions used in determining the net cost (income) for pensions include the discount rate. Anychanges in these assumptions, which are disclosed in note 23, will impact the carrying amount of thepension liability. Furthermore a roll forward approach which projects results from the latest fullactuarial valuation performed at 31 March 2013 has been used by the actuary in valuing thepensions liability at 31 August 2016. Any differences between the figures derived from the rollforward approach and a full actuarial valuation would impact on the carrying amount of the pensionliability.

2. INCOME FROM DONATIONS AND CAPITAL GRANTS

Unrestrictedfunds

Restrictedfunds


fundsTotal

fundsTotalfunds

2016£

2016£

2016£

2016£

2015£

Donations 26,329 26,731 - 53,060 27,026DfE/EFA Capital Grants - - 209,535 209,535 35,849Donated assets - - - - 131,063

Total donations and capitalgrants 26,329 26,731 209,535 262,595 193,938

In 2015, of the total income from donations and capital grants, £16,586 was to unrestricted funds, £10,440

was to restricted funds and £166,912 was to restricted fixed asset funds.

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CHARTERS SCHOOL



3. ACTIVITIES FOR GENERATING FUNDS

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2016£

2016£

2016£

2015£

Rental income 17,258 - 17,258 19,919School shop trading account (6,994) - (6,994) 21,336Other income 17,553 - 17,553 15,989

27,817 - 27,817 57,244

In 2015, of the total income from other trading activities, £57,244 was to unrestricted funds, £ NIL was torestricted funds and £ NIL was to restricted fixed asset funds.

4. INVESTMENT INCOME

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2016£

2016£

2016£

2015£

Bank interest receivable 6,969 - 6,969 5,627

In 2015, of the total investment income, £5,627 was to unrestricted funds, £ NIL was to restricted fundsand £ NIL was to restricted fixed asset funds.

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5. FUNDING FOR ACADEMY'S EDUCATIONAL OPERATIONS

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2016£

2016£

2016£

2015£

DfE/EFA grants

General Annual Grant (GAG) - 8,109,126 8,109,126 8,386,137Pupil premium - 138,078 138,078 132,945Other DfE/EFA revenue grants - 30,383 30,383 33,453

- 8,277,587 8,277,587 8,552,535

Other government grants

Local Authority SEN income - 190,314 190,314 157,993Other LA grants - 10,431 10,431 14,607

- 200,745 200,745 172,600

Other funding

School trip income 347,012 300 347,312 506,055Other income 265,898 53,962 319,860 330,350

612,910 54,262 667,172 836,405

612,910 8,532,594 9,145,504 9,561,540

In 2015, of the total income from charitable activities, £836,405 was to unrestricted funds, £8,725,135 wasto restricted funds and £ NIL was to restricted fixed asset funds.

6. EXPENDITURE

Staff costs Premises Other costs Total Total2016

£2016

£2016

£2016

£2015

£

Academy's educationaloperations:

Direct costs 6,622,245 - 807,179 7,429,424 7,769,890 Support costs 1,072,341 1,009,770 807,286 2,889,397 2,952,390

7,694,586 1,009,770 1,614,465 10,318,821 10,722,280

In 2016, of the total expenditure, £620,041 (2015 - £816,897) was to unrestricted funds, £8,918,384 (2015- £9,136,427) was to restricted funds and £780,396 (2015 - £768,956) was to restricted fixed asset funds.

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7. CHARITABLE ACTIVITIES

Totalfunds

Totalfunds

2016£

2015£

DIRECT COSTS - EDUCATIONAL OPERATIONS

Teaching and educational support staff costs 6,294,852 6,489,064Pension finance cost 37,277 37,036Educational supplies 449,321 614,334Examination fees 200,151 192,801Staff development 14,873 19,847Educational consultancy 286,431 322,227Other direct costs 146,519 94,581

7,429,424 7,769,890

SUPPORT COSTS - EDUCATIONAL OPERATIONS

Support staff costs 1,350,070 1,088,074Depreciation 780,396 768,956Pension finance cost 49,723 47,964Technology costs 107,683 101,518Recruitment and support 10,066 18,090Maintenance of premises and equipment 87,800 281,964Cleaning 18,307 19,409Rent and rates 48,991 43,886Energy costs 95,717 117,202Insurance 56,278 75,652Security and transport 34,596 41,002Catering 14,907 13,185Bank interest and charges 712 742Other support costs 208,204 312,355Governance costs 25,947 22,391

2,889,397 2,952,390

10,318,821 10,722,280

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8. EXPENDITURE - ANALYSIS OF SPECIFIC EXPENSES

Included within expenditure are the following transactions:

Total

Gifts made by the trust 1,875 - Stock losses 661 -

9. NET RESOURCES EXPENDED/(INCOMING RESOURCES)

This is stated after charging:

2016 2015 £ £

Depreciation of tangible fixed assets:- owned by the charity 780,396 768,956

Auditors' remuneration - audit 9,500 9,500Auditors' remuneration - other services 10,672 7,685Operating lease rentals 24,781 16,233

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10. STAFF COSTS

Staff costs were as follows:

2016 2015 £ £

Wages and salaries 6,077,162 6,010,626Social security costs 493,080 464,012Operating costs of defined benefit pension schemes 1,074,680 985,522

7,644,922 7,460,160Supply teacher costs 49,664 107,478Staff restructuring costs - 9,500

7,694,586 7,577,138

The average number of persons employed by the Academy during the year was as follows:

2016 2015 No. No.

Teaching 107 104Administration and support 100 95Management 8 8

215 207

The number of employees whose employee benefits (excluding employer pension costs) exceeded£60,000 was:

2016 2015 No. No.

In the band £70,001 - £80,000 2 2In the band £90,001 - £100,000 0 2In the band £100,001 - £110,000 2 0

Four (2015: four) of the above employees participated in the Teachers Pension Scheme. During the yearended 31 August 2016 pension contributions for these staff amounted to £56,802 (2015: £47,432).

The key management personnel of the academy trust comprises the trustees and the senior managementteam as listed on page 1. The total amount of employee benefits (including employer pensioncontributions) received by key management personnel for their services to the academy trust was£678,345 (2015: £626,347).

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11. TRUSTEES' REMUNERATION AND EXPENSES

One or more Trustees has been paid remuneration or has received other benefits from an employmentwith the academy trust. The Headteachers and other staff Trustees only receive remuneration in respectof services they provide undertaking the roles of headteachers and other staff members under theircontracts of employment, and not in respect of their role as Trustees. The value of Trustees' remunerationand other benefits was as follows:

2016 2015 £ £

R J Pilgrim (Co-Headteacher) RemunerationPension contributions paid

100,000-105,00015,000-20,000

95,000-100,00010,000-15,000

M Parker (Co-Headteacher) RemunerationPension contributions paid

100,000-105,00015,000-20,000

95,000-100,00010,000-15,000

R Deacon RemunerationPension contributions paid

50,000-55,0005,000-10,000

50,000-55,0005,000-10,000

S Gilmour-Smith (appointed 1September 2015)

RemunerationPension contributions paid

20,000-25,0000-5,000

0-5,0000-5,000

Remuneration disclosures for staff Trustees who resigned before 1 September 2015 have not beendisclosed in these financial statements.

During the year ended 31 August 2016, travel expenses for non-Trustee activities totalling £1,859 (2015:£250) were reimbursed or paid directly to 3 Trustees (2015 - 4 trustees).

12. TRUSTEES' AND OFFICERS' INSURANCE

In accordance with normal commercial practice the academy has purchased insurance to protect trusteesand officers from claims arising from negligent acts, errors or omissions occurring whilst on academybusiness. The insurance provides cover up to £2,000,000 on any one claim and the cost for the yearended 31 August 2016 was £1,271 (2015 - £1,875).

13. PENSION FINANCE COSTS

2016 2015 £ £

Interest on pension scheme liabilities (87,000) (85,000)

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14. TANGIBLE FIXED ASSETS

Longleaseholdland and

buildings

Fixtures,fittings andequipment

Motorvehicles Total

£ £ £ £

Cost

At 1 September 2015 24,213,397 378,947 30,025 24,622,369Additions 3,900 514,929 - 518,829

At 31 August 2016 24,217,297 893,876 30,025 25,141,198

Depreciation

At 1 September 2015 2,026,013 194,361 24,922 2,245,296Charge for the year 707,580 71,066 1,750 780,396

At 31 August 2016 2,733,593 265,427 26,672 3,025,692

Net book value

At 31 August 2016 21,483,704 628,449 3,353 22,115,506

At 31 August 2015 22,187,384 184,586 5,103 22,377,073

Included in long leasehold land and buildings is freehold land at valuation of £2,515,448 (2015 -

£2,515,448), which is not depreciated.

15. STOCKS

2016 2015 £ £

Clothing and stationery - 41,631

16. DEBTORS

2016 2015 £ £

Trade debtors 50,785 10,344Other debtors 26,084 -Prepayments and accrued income 97,245 103,955VAT recoverable 92,738 78,989

266,852 193,288

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17. CREDITORS: Amounts falling due within one year

2016 2015 £ £

Trade creditors 181,937 130,979Other taxation and social security 144,913 133,113Other creditors 90,403 -Accruals and deferred income 234,070 155,022

651,323 419,114

2016 2015 £ £

Deferred income

Deferred income at 1 September 2015 55,234 110,155Resources deferred during the year 86,944 55,234Amounts released from previous years (55,234) (110,155)

Deferred income at 31 August 2016 86,944 55,234

At the balance sheet date the trust was holding funds received in advance for school trips.

Included within other creditors is a SALIX loan of £53,870 from the EFA which is provided on the followingterms: interest is not charged and repayments will be made through a reduction in revenue payments.

18. CREDITORS:Amounts falling due after more than one year

2016 2015 £ £

Other creditors 255,730 -

Creditors include amounts not wholly repayable within 5 years as follows:

2016 2015 £ £

Repayable by instalments 146,131 -

Included within other creditors is a SALIX loan of £255,730 from the EFA which is provided on thefollowing terms: interest is not charged and repayments will be made through a reduction in revenuepayments over an 8 year payback. £146,131 is repayable over 5 years.

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19. STATEMENT OF FUNDS

BroughtForward Income Expenditure

Transfersin/out

Gains/(Losses)

CarriedForward

£ £ £ £ £ £

Unrestrictedfunds

Unrestricted funds 428,902 674,025 (620,041) - - 482,886

Restricted funds

General AnnualGrant (GAG) 21,258 8,109,126 (7,990,658) (77,232) - 62,494

Other DfE/EFArevenue grants 17,768 168,461 (152,227) - - 34,002

Other LocalAuthority Grants 264,928 200,745 (465,673) - - -

Other income 1,142 80,993 (77,826) - - 4,309SALIX loan - - - (292,263) - (292,263)Pension reserve (2,286,000) - (232,000) - (1,602,000) (4,120,000)

(1,980,904) 8,559,325 (8,918,384) (369,495) (1,602,000) (4,311,458)

Restricted fixed asset funds

Inherited fixedassets 21,699,843 - (704,328) - - 20,995,515

Capital expenditurefrom GAG 146,546 - (58,019) 369,495 - 458,022

EFA/DfE grants 965,613 209,535 (18,049) - - 1,157,099

22,812,002 209,535 (780,396) 369,495 - 22,610,636

Total restrictedfunds 20,831,098 8,768,860 (9,698,780) - (1,602,000) 18,299,178

Total of funds 21,260,000 9,442,885 (10,318,821) - (1,602,000) 18,782,064

The specific purposes for which the funds are to be applied are as follows:

The General Annual Grant (GAG) represents the core funding for the educational activities of the schoolthat has been provided to the academy via the Education Funding Agency by the Department forEducation. The GAG fund has been set up because the GAG must be used for the normal running costsof the academy.

The local authority restricted fund represents other funding received from the local government received inrelation to specific purposes such as SEN funding.

The SALIX loan fund represents a SALIX loan received for boiler replacement work. Repayments will bemade through a reduction in revenue payments over a 8 year payback.

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19. STATEMENT OF FUNDS (continued)

The pension reserve represents the separately identifiable pension scheme deficit inherited from the localauthority upon conversion to academy status, and through which all the pension scheme movements arerecognised.

Other income funds represents donations and miscellaneous educational income which must be used forthe purposes agreed.

The inherited fixed asset fund has been set up to recognise the tangible assets gifted to the academyupon conversion which represent the school site including the freehold and long leasehold land andbuildings and all material items of plant and machinery included therein. Depreciation charged on thoseinherited assets is allocated to the fund.

The DfE/EFA capital grant fund relates to restricted devolved capital income awarded to the academy andthe relevant restricted expenditure recorded against this.

The transfer between restricted funds and restricted fixed asset funds represents amounts capitalisedduring the period.

All general funds are held for the purposes of education in line with the Academy's objectives.

Under the funding agreement with the Secretary of State, the Academy was not subject to a limit on theamount of GAG that it could carry forward at 31 August 2016.

20. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestrictedfunds

Restrictedfunds


fundsTotal

fundsTotalfunds

2016£

2016£

2016£

2016£

2015£

- - - - 22,377,073Tangible fixed assets - - 22,115,506 22,115,506 -Current assets 482,886 715,595 495,130 1,693,611 1,588,041Creditors due within one year - (651,323) - (651,323) (419,114)Creditors due in more than one

year - (255,730) - (255,730) -Pension scheme liability - (4,120,000) - (4,120,000) (2,286,000)

482,886 (4,311,458) 22,610,636 18,782,064 21,260,000

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21. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOWFROM OPERATING ACTIVITIES

2016 2015 £ £

Net expenditure for the year (as per Statement of financialactivities) (875,936) (903,931)

Adjustment for:Depreciation charges 780,463 768,956Dividends, interest and rents from investments (6,969) (5,627)Decrease/(increase) in stocks 41,631 (1,178)(Increase)/decrease in debtors (73,564) 461,523Increase/(decrease) in creditors 178,339 (26,660)Capital grants from DfE and other capital income (209,535) -Pension adjustments 232,000 255,000

Net cash provided by operating activities 66,429 548,083

22. ANALYSIS OF CASH AND CASH EQUIVALENTS

2016 2015 £ £

Cash in hand 1,426,759 1,353,122

Total 1,426,759 1,353,122

23. PENSION COMMITMENTS

The Academy's employees belong to two principal pension schemes: the Teacher's Pension Scheme forEngland and Wales (TPS) for academic and related staff; and the Local Government Pension Scheme(LGPS) for non-teaching staff, which is managed by Royal County of Berkshire. Both are Multi-EmployerDefined Benefit Pension Schemes.

The latest actuarial valuation of the TPS related to the period ended 31 March 2012 and of the LGPS 31March 2013.

There were no outstanding or prepaid contributions at either the beginning or the end of the financial year.

Teachers' Pension Scheme

Introduction

The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed bythe Teachers' Pensions Regulations (2010) and, from 1 April 2014, by the Teachers' Pension SchemeRegulations 2014. Membership is automatic for full-time teachers in academies and, from 1 January 2007,automatic for teachers in part-time employment following appointment or a change of contract, althoughthey are able to opt out.

The TPS is an unfunded scheme and members contribute on a ‘pay as you go’ basis – these contributionsalong with those made by employers are credited to the Exchequer. Retirement and other pensionbenefits are paid by public funds provided by Parliament.

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23. PENSION COMMITMENTS (continued)

Valuation of the Teachers’ Pension Scheme

Not less than every four years the Government Actuary, using normal actuarial principles, conducts aformal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations andEmployer Cost Cap) Directions 2014 published by HM Treasury. The aim of the review is to specify thelevel of future contributions. Actuarial scheme valuations are dependent on assumptions about the valueof future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS wascarried out as at 31 March 2012 and in accordance with the Public Service Pensions (Valuations andEmployer Cost Cap) Directions 2014. The valuation report was published by the Department for Educationon 9 June 2014. The key elements of the valuation and subsequent consultation are:

• employer contribution rates set at 16.48% of pensionable pay, including a 0.08% employeradministration charge (currently 14.1%)

• total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) forservice to the effective date of £191,500 million, and notional assets (estimated future contributionstogether with the notional investments held at the valuation date) of £176,600 million giving a notionalpast service deficit of £14,900 million

• an employer cost cap of 10.9% of pensionable pay will be applied to future valuations

• the assumed real rate of return is 3.0% in excess of prices and 2% in excess of earnings. The rate ofreal earnings growth is assumed to be 2.75%. The assumed nominal rate of return is 5.06%.

During the previous year the employer contribution rate was 14.1%. The TPS valuation for 2012determined an employer rate of 16.4%, which was payable from September 2015. The next valuation ofthe TPS will be as at March 2016, whereupon the employer contribution rate is expected to be reassessedand will be payable from 1 April 2019.

The employer’s pension costs paid to TPS in the period amounted to £735,313 (2015 - £618,139).

A copy of the valuation report and supporting documentation is on the Teachers’ Pensions website(www.teacherspensions.co.uk/news/employers/2014/06/publication-of-the-valuation-report.aspx).

Under the definitions set out in FRS 102, the TPS is a multi-employer pension scheme. The trust hasaccounted for its contributions to the scheme as if it were a defined contribution scheme. The trust has setout above the information available on the scheme.

Local Government Pension Scheme

The LGPS is a funded defined benefit scheme, with assets held in separate trustee-administered funds.The total contribution made for the year ended 31 August 2016 was £268,000 (2015 - £271,000), of whichemployer's contributions totalled £196,000 (2015 - £198,000) and employees' contributions totalled£72,000 (2015 - £73,000). The agreed contribution rates for future years are 16.6% for employers andrange between 5.5% and 12.5% for employees.

Parliament has agreed, at the request of the Secretary of State for Education, to a guarantee that, in theevent of academy closure, outstanding Local Government Pension Scheme liabilities would be met by theDepartment for Education. The guarantee came into force on 18 July 2013.

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Principal actuarial assumptions:

2016 2015

Discount rate for scheme liabilities %2.20 %4.00Rate of increase in salaries %4.10 %4.50Rate of increase for pensions in payment / inflation %2.30 %2.70Inflation assumption (CPI) %2.30 %2.70RPI Increases %3.20 %3.60

The current mortality assumptions include sufficient allowance for future improvements in mortality rates.The assumed life expectations on retirement age 65 are:

2016 2015

Retiring todayMales 22.9 22.8Females 26.2 26.1

Retiring in 20 yearsMales 25.2 25.1Females 28.5 28.4

The Academy's share of the assets in the scheme was:

Fair value at Fair value at31 August 31 August

2016 2015£ £

Equities 1,106,000 815,000Other bonds 311,000 229,000Property 294,000 244,000GiltsCashAlternative assets and other

36,00095,000

434,000

24,00089,000

401,000

Total market value of assets 2,276,000 1,802,000

The actual return on scheme assets was £238,000 (2015 - £38,000).

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The amounts recognised in the Statement of Financial Activities Incorporating Income and ExpenditureAccount are as follows:

2016 2015 £ £

Current service cost (net of employee contributions) (339,000) (367,000)Net interest cost (87,000) (85,000)Administration expenses (2,000) (1,000)

Total (428,000) (453,000)

Movements in the present value of the defined benefit obligation were as follows:

2016 2015 £ £

Opening defined benefit obligation 4,088,000 3,614,000Current service cost 339,000 367,000Interest cost 164,000 149,000Contributions by employees 72,000 73,000Actuarial losses/(gains) 1,763,000 (94,000)Benefits paid (30,000) (21,000)

Closing defined benefit obligation 6,396,000 4,088,000

Movements in the fair value of the Academy's share of scheme assets:

2016 2015 £ £

Opening fair value of scheme assets 1,802,000 1,514,000Return on plan assets (excluding net interest on the net defined

pension liability) 77,000 64,000Actuarial gains and (losses) 161,000 (25,000)Contributions by employer 196,000 198,000Contributions by employees 72,000 73,000Benefits paid (30,000) (21,000)Administration expenses (2,000) (1,000)

Closing fair value of scheme assets 2,276,000 1,802,000

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PENSION COMMITMENTS (continued)

The amount shown in the balance sheet is:cont 2016

£ 2015

£

Present value of defined benefit obligation (6,396,000) (4,088,000)Fair value of scheme assets 2,276,000 1,802,000

Net pension liability (4,120,000) (2,286,000)

24. OPERATING LEASE COMMITMENTS

At 31 August 2016 the total of the Academy Trust’s future minimum lease payments under non-cancellable operating leases was:

2016 2015£ £

Amounts payable:

Within 1 year 5,572 19,790Between 1 and 5 years 11,228 20,880

Total 16,800 40,670

25. RELATED PARTY TRANSACTIONS

Owing to the nature of the Academy's operations and the composition of the board of trustees beingdrawn from local public and private sector organisations, transactions may take place with organisations inwhich the trust has an interest. All transactions involving such organisations are conducted at arm's lengthand in accordance with the Academy's financial regulations and normal procurement procedures.

The following related party transactions took place in the period with Tirabad Residential EducationalTrust, a charitable trust in which R Pilgrim is a trustee by virtue of his position as head master of ChartersSchool.

Tirabad Residential Educational Trust invoiced the academy £111,331 (2015: £125,781) in relation tostudents visiting the site. This cost was primarily met through parental contributions.

Members of Charters School staff assist with the administration of the Tirabad Residential EducationalTrust. The total cost relating to this support was £6,530 (2015: £6,460), which is reimbursed by theTirabad Residential Educational Trust in full. The academy also finances a minibus for use on TirabadResidential Educational Trust business, the lease cost for this minibus was £5,688 (2015: £6,452). Again,these costs are reimbursed in full by the Tirabad Residential Educational Trust. At the year end there wereno amounts outstanding (2015: no amounts outstanding).

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26. MEMBERS' LIABILITY

Each member of the charitable company undertakes to contribute to the assets of the company in theevent of it being wound up while he/she is a member, or within one year after he/she ceases to be amember, such amount as may be required, not exceeding £ 10 for the debts and liabilities contractedbefore he/she ceases to be a member.

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27. FIRST TIME ADOPTION OF FRS 102

It is the first year that the Academy Trust has presented its financial statements under SORP 2015 andFRS 102. The following disclosures are required in the year of transition. The last financial statementsprepared under previous UK GAAP were for the year ended 31 August 2015 and the date of transition toFRS 102 and SORP 2015 was therefore 1 September 2014. As a consequence of adopting FRS 102 andSORP 2015, a number of accounting policies have changed to comply with those standards.

Comparative figures have been restated to reflect the adjustments made, except to the extent that theTrustees have taken advantage of exemptions to retrospective application of FRS 102 permitted by FRS102 Chapter 35 ‘Transition to this FRS’.

Reconciliations and descriptions of the effect of the transition to FRS 102 and SORP 2015 on total fundsand net income/(expenditure) for the comparative period reported under previous UK GAAP and SORP2005 are given below.

RECONCILIATION OF TOTAL FUNDS Notes 1 September 2014 31 August 2015 £ £

Total funds under previous UK GAAP 21,625,241 21,260,000Change in recognition of ACMF grant income A 469,690 -

Total funds reported under FRS 102 22,094,931 21,260,000

Reconciliation of net (expenditure) Notes 31 August 2015 £

Net (expenditure) previously reported under UKGAAP

(400,241)

Change in recognition of ACMF grant income A (469,690)Change in recognition of LGPS interest cost B (34,000)

-

Net (expenditure) reported under FRS 102 (903,931)

Explanation of changes to previously reported funds and net income/expenditure:

A Under previous UK GAAP the trust recognised grant income on a virtually certain basis. Under FRS102 grant income must be recognised on a probable basis. Consequently £469,690 of ACMF grantincome for the SEN refurbishment and the flat roof has been recognised at the transition date of 1September 2014. The effect of the change has been to increase total funds at 1 September 2014by £469,690 and increase net expenditure of £400,241 for the 12 months to 31 August 2015 to netexpenditure of £903,931. Total funds at 31 August 2015 remain unaffected by the change.

B Under previous UK GAAP the trust recognised an expected return on defined benefit plan assets inincome/expense. Under FRS 102 a net interest expense, based on the net defined benefit liability,is recognised in income/expense. There has been no change in the defined benefit liability at either1 September 2014 or 31 August 2015. The effect of the change has been to reduce the credit toexpense by £34,000 and increase the debit in other recognised gains and losses in the SoFA by anequivalent amount.

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