(A Company Limited by Guarantee) TRUSTEES' REPORT AND ... · FOR THE PERIOD ENDED 31 AUGUST 2016...

Registered number: 09683579

NEWLANDS GIRLS’ SCHOOL

(A Company Limited by Guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 AUGUST 2016

NEWLANDS GIRLS’ SCHOOL (A Company Limited by Guarantee)

CONTENTS

Page

Reference and administrative details

1 - 2

Trustees' report

3 - 8

Governance statement

9 - 12

Statement on regularity, propriety and compliance

13

Trustees' responsibilities statement

14

Independent auditors' report

15 – 16

Independent reporting accountant's assurance report on regularity

17 – 18

Statement of financial activities

19

Balance sheet

20

Cash flow statement

21

Notes to the financial statements

22 - 44


REFERENCE AND ADMINISTRATIVE DETAILS FOR THE PERIOD ENDED 31 AUGUST 2016

Page 1

Members Mrs P. Fawcett Mr R. Hinchliffe Mrs D. Mair Mr B. Wastell Mr J. Simpson Trustees / Governors *Members of the Finance Committee Mr J. Simpson* (appointed 13 July 2015) Mr B. Wastell* (appointed 13 July 2015 and resigned 12 July 2016) Mr S. Bridge* (appointed 13 July 2015) Mrs L. Allaway (appointed 11 October 2015 staff trustee) Mrs L. Ceska* (appointed 13 July 2015 principal and accounting officer) Mr H. Buckle (appointed 14 December 2015) Mr P. Manby* (appointed 12 October 2015) Mrs J.Robson (appointed 12 October 2015) Mr K. Pannu (appointed 12 October 2015) Ms C. Vincent* (appointed 14 December 2015) Mr T. Mahmood* (appointed 14 December 2015) Mr R. Preece (appointed 19 September 2016) Mrs C. Mulvihill (appointed 19 September 2016) Senior Management Team Mrs L. Ceska Headteacher Mr M. Henshaw Deputy Headteacher Mr A. Wellman Deputy Headteacher Mrs S. Nuttycombe (Maternity Leave) Assistant Headteacher Mr J. O’Connell Acting Assistant Headteacher Mrs H. Walker Assistant Headteacher Mrs G. Walton Assistant Headteacher Mrs R. Lawson Bursar Company Name Newlands Girls’ School Principal and registered office Newlands Girls’ School, Farm Road, Maidenhead, SL6 5JB Company registered number 09683579 (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 PERIOD ENDED 31 AUGUST 2016

Page 2

Bankers Lloyds Bank PLC, 25 Gresham Street, London, EC2V 7HN The Royal Bank of Scotland, 280 Bishopsgate, London, EC2M 4RB Solicitors Eversheds LLP, Bridgewater Place, Water Lane, Leeds, LS11 5DR Shared Legal Solutions, Shute End, Wokingham, Berks, RG40 1WH


TRUSTEES' REPORT FOR THE PERIOD ENDED 31 AUGUST 2016

Page 3

The trustees present their annual report together with the financial statements and auditors’ reports of the charitable company for the period from 13 July 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 pupils aged 11 to 19 serving a catchment area in Maidenhead. It has a pupil capacity of 1200 and had a roll of 1160 on 8/9/16 (1114 in the school census on 1/10/15). STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution The Academy Trust is a company limited by guarantee and an exempt charity. The charitable company’s memorandum and articles of association are the primary governing documents of the Academy Trust. The trustees of Newlands Girls’ School Academy Trust Limited are also the directors of the charitable company for the purposes of company law. The Charitable Company is known as Newlands Girls’ School. Details of the trustees who served throughout the period are included in the Reference and Administrative Details on page 1-2. 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 the Academy having bought into the Risk Protection Arrangement (RPA) for academy trusts. The RPA is an alternative to insurance where UK government funds aim to protect academy trusts against losses due to any unforeseen and unexpected event. This protection includes 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 the RPA in the period 2015-16 was £27,379. Newlands Girls’ School also has additional insurance in place for overseas travel and engineering insurance and inspections. Method of Recruitment and Appointment or Election of Trustees The trustees are directors of the charitable company for the purposes of the Companies Act 2006 and trustees for the purposes of charity legislation. Trustees fall into different categories: Parent trustees are elected by parents and carers of registered pupils and must be such parents and carers at the time of their election. If insufficient parents stand for election, the Governing Body can appoint parent trustees. Staff trustees are elected by and from the staff in two separate categories: teaching staff and non-teaching staff. If insufficient staff stand for election, the Governing Body can appoint staff trustees. Trustees represent the local community and also bring particular knowledge, skills and expertise to the Governing Body. The trustees are voted on by the Governing Body of the Academy.


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

Page 4

Policies and Procedures Adopted for the Induction and Training of Trustees All trustees are provided with policies on their roles and responsibilities, conduct and guidance on the general principles of behaviour. Trustees are expected to engage in annual training and attend a programme of induction. Opportunities for training are provided through courses and specialist input at Governors’ meetings. All trustees are provided with documentation, such as policies, procedures, data and budgets in advance of meetings. All trustees are expected to become a ‘Link’ to Subject Departments and/or Year Groups and, as such, familiarise themselves with this particular aspect of the school through visits and regular communication. Organisational Structure The trustees meet as a Full Governing Body at least five times a year with various committee meetings of the 5 sub-groups, namely:

• Curriculum

• Finance

• Salaries

• School and Community

• Sites and Buildings

The senior member of staff to whom day to day management is delegated is Mrs Louise Ceska, Headteacher. The organisational structure consists of three levels: the Trustees, the Senior Leadership Team and the Middle Leadership Team. The aim of the management structure is to distribute leadership and to encourage good decision making at all levels. The trustees are responsible for setting general policies, adopting an annual plan and budget and monitoring the Academy’s capital expenditure. The Leadership Team consists of the Headteacher, two Deputy Headteachers, four Assistant Headteachers and the Bursar. These managers control the Academy at an executive level, implementing policies laid down by the Trustees and reporting back to them. All authorisation of spending within agreed budgets is delegated to the Middle Leaders who co-ordinate the day-to-day activities within their specific area of responsibility. Staffing appointments below the level of Assistant Head are made by the Headteacher. Trustees are involved with appointments of Assistant Heads, Deputy Heads and the Headteacher. Pay decisions are made by the Salaries Committee. The Finance Committee receives regular reports from the Bursar and advises the Full Governing Body of budgetary challenges and considerations. Arrangements for setting pay and remuneration of key management personnel The Governing Body assign a seven point individual school range based on the school group size and any other relevant factors as determined by the STPCD for the Headteacher’s Pay Scale. For all other Leadership Posts, the Governing Body determine a five-point pay range from within the Leadership Scale contained within the STPCD. The Bursar’s pay scale was agreed at the Salaries Committee in November 2015 on recommendation from the Headteacher after benchmarking against similar local providers. Related parties and other connected charities and organisations. The school does not have any business sponsors, but works closely with other schools, both Primary and Secondary, in the local area. Newlands Girls’ School cooperates with Newlands Parents’ Association (charity registration number 1117220) in the pursuit of charitable activities, but does not have a controlling interest or ownership interest. Further details of this relationship is given in note 27.



Page 5

OBJECTIVES AND ACTIVITIES

Objects and Aims The principal object of the trust is to advance, for the public benefit, education in the UK by maintaining, managing and developing Newlands Girls’ School as a provider of high quality education for girls aged 11 to 19 who reside mainly in the local area. The aim is for the school to enable all learners to fulfil their potential and for staff, both teaching and non-teaching, to develop fully their skills and aptitudes. Our mission statement is as follows:

‘At Newlands we create confident and responsible young women equipped with the skills they need for the 21st Century. We empower all students to realise their potential as part of a sustainable community committed to lifelong learning.’

Objectives, Strategies and Activities

• Strive to make leadership at all levels a key driver of school improvement

• Ensure the continuation of the highest standards of behaviour, so that all members of our community are safe

• Continue to develop excellence in our teaching to enable all girls to make outstanding progress

• Ensure that standards continue to rise so that every girl can fulfil her academic potential Criteria to be used to assess success will include:

• Percentage of girls on target

• A*- C GCSE outcomes

• Progress 8

• ALPS

• Attendance and exclusion data

• Staff performance management outcomes

The School Development Plan, and progress against it, is closely monitored by committees of the Governing Body. All Subject Departments and Year Groups complete Development Plans and carry out regular evaluations. Successful achievement of the school’s aims were illustrated by the excellent public examination results in 2016 (85% 5+ A* - C, including Maths and English) GCSE and 91% A*- C at A-Level).

Public Benefit The Academy trust’s trustees have complied with their duty to have due regard to the guidance on public benefit as published by the Charity Commission.

STRATEGIC REPORT

Achievements and Performance The public examination results for the academic year 2015-2016 are as follows:

A-Level A*- C = 91.3% A* = 15.9% A*- A = 33.6% A*- B = 66.8% ALPS 3

GCSE A*-C (En/Ma) = 88% E Bacc =51% 5+ A*- C (inc. English & Maths) = 85% 5+ A*- G = 99% A*/A =33% Progress 8 = +0.54 Average Attainment 8 Grade = B Percentage on target = 66.0



Page 6

Key Performance Indicators 2015/16 Staff cost as a percentage of EFA/DFE Funding 95%

Exam Results 2016 Exam Results 2015

A Levels A*- C 91.6% 84.5%

A Levels A* - B 66.4% 49.4%

A Levels A* - G 100.0% 99.1%.

5 A*-C GCSE including Maths & English

85% 72%

Pupil Premium A*-C including Maths & English

82% 63%

A*-C GCSE including Maths & English

88% 73%

English 3 Levels of Progress from KS2 to KS4

93% 81%

English more than 3 Levels of Progress from KS2 to KS4

59% 43%

Maths 3 Levels of Progress from KS2 to KS4

88% 80%

Maths more than 3 Levels of Progress from KS2 to KS4

44% 39%

The OFSTED report of 2012 stated that Newlands is a ‘Good’ school with two ‘Outstanding’ aspects (Leadership and Management; Behaviour and Safety). All public examination outcomes are well above national average. Pupil attendance and recruitment are at high levels. Going Concern 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. FINANCIAL REVIEW The majority of the Academy’s income is obtained from the EFA in the form of the General Annual Grant. The funds are restricted as shown in the statement of financial activities. The academy also receives other grants such as Pupil Premium and Special Needs funding. Any other items of funding have been assigned in the financial statements in accordance with the guidelines set down by SORP (Statement of Recommended Practice). Reserves Policy The reserves policy of the Academy is to carry forward a prudent level of resources, where possible, of not less than 2% of funding from the EFA designed to meet the long term cyclical needs of renewal and any other unforeseen contingencies. This 2% of EFA funding equates to £98,791 and the Unrestricted and Other restricted items below come to a total of £355,730 which is 7.2% of funding and therefore higher. This is partly due to the monies on conversion received in February from the Local Authority of £330,702. The Governors will be reviewing the Reserves Policy contained within the Financial Manual during 2016/17. This is due to the reserve needing to be higher than 2% for required building works such as replacement windows and heating pipework as well as IT requirements for replacement equipment that has reached its end of life.



Page 7

Reserves Policy (continued)

At 31 August 2016 the total funds comprised:

Unrestricted £86,141 Restricted: Fixed asset funds £27,194,811 Pension reserve £(2,085,000) Other £269,589 ------------------------------------------------------------

£25,465,541 =====================================================

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. Investment Policy Our surplus funds are held within our Lloyds TSB Bank & RBS Bank accounts as per our Financial Manual. Principal Risks and Uncertainties

• Performance risk – mitigated by rigorous monitoring of pupil progress and staff performance

• Reputational risk – mitigated by ensuring positive outcomes for pupils and fostering good relationships

with all stakeholders

• Financial risk – mitigated by strenuous efforts to keep pupil numbers up, rigorous attention to driving

down costs, close monitoring of cash flow and tight adherence to budgets, increasing the number of

Finance personnel to ensure segregation of duties

• Risks associated with personnel – mitigated by adherence to safer recruitment principles, DBS and

medical checks, SLA with RBWM HR Department and commitment to keeping up to date with changes

to employment law.

Through its Governing Body, and its subcommittees, the Academy practises risk management principles. Any major risks highlighted at any committee are bought to the Full Governing Body with proposed actions and they continue to be reported until the risk is adequately mitigated. The Governing Body accepts managed risks as an inevitable part of its operations but maintains an objective not to run unacceptable levels of risk in any area. PLANS FOR FUTURE PERIODS The trustees and senior staff continue to aspire to the provision of an outstanding education for all learners. Plans to improve the site through the expenditure of S106 monies are being implemented so as to create two new classrooms, improved circulation and more study space by 2018.



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FUNDS HELD AS CUSTODIAN TRUSTEE ON BEHALF OF OTHERS The Academy does not hold any funds as custodian trustee. AUDITOR 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 6 December 2016 and signed on the board’s behalf by: …………………………………………… J Simpson Chair of Trustees


GOVERNANCE STATEMENT FOR THE PERIOD ENDED 31 AUGUST 2016

Page 9

SCOPE OF RESPONSIBILITY As trustees we acknowledge we have overall responsibility for ensuring that Newlands Girls’ 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 Mrs L.V. Ceska 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 Newlands Girls’ School and the Secretary of State for Education. She 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 period. Attendance during the period at meetings of the board of trustees was as follows: Trustee Meetings attended Out of a possible Mr. B. Wastell (Chairman) (resigned July 2016)

4

4

Mr. J. Simpson (Appointed as Chair in July 2016) 3 4 Mr. S. Bridge 4 4 Mr. M. Clark 0 2 Mr. P. Manby 4 4 Mr. A. Rooke (Resigned November 2015) 0 1 Mr. K. Pannu 4 4 Mrs J. Robson 2 4 Mrs L. Allaway (Staff Governor) 4 4 Mrs L. Ceska (Headteacher and Accounting Officer) 4 4 Mrs C. Vincent 2 2 Mr. T. Mahmood 2 2 Mr. H. Buckle 2 2 The long-standing Chair (Mr. B. Wastell) stood down after many years of excellent service. The Vice Chair was appointed as Chair together with a new Vice Chair. Mr T. Mahmood was co-opted in February 2016 for his skill set (accountancy) and commitment to the school.

It is the intention of the Trustees to carry out a Governance Review, which will be completed by August 2017.


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

Page 10

GOVERNANCE (continued) The Finance Committee is a sub-committee of the main board of trustees. Its purpose is to:

• To ensure that the school conducts its financial affairs in an organised and efficient manner, observes good standards of financial stewardship to avoid corruption, mismanagement or maladministration;

• To undertake the monitoring, evaluating and reviewing of the budget and patterns of spending

• To ensure that adequate insurance for all considerable risks is maintained

• To ensure compliance with the Education Funding Authority’s (EFA) Academies Financial Handbook and the schools funding agreement with EFA.

• To oversee, monitor and keep under review the school's financial procedures

• Advise the Governing Body and Accounting Officer on the adequacy and effectiveness of the Trust’s governance, risk management, internal control and value for money systems and frameworks.

• Advise the Governing Body on the appointment, re-appointment, of the external and regularity auditor.

During the period T Mahmood, who is a qualified accountant, joined the committee. Attendance at meetings in the period was as follows:

Trustee Meetings attended Out of a possible Mr T. Mahmood (Appointed Feb 2016)

2

2

Mr J. Simpson (Chair of Finance) 3 3 Mrs L. Ceska 3 3 Mr S. Bridge 3 3 Mr B. Wastell 3 3 REVIEW OF VALUE FOR MONEY As accounting officer, the Headteacher has responsibility for ensuring that the academy trust delivers good value in the use of public resources. The accounting officer understands that value for money refers to the educational and wider societal outcomes 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 period by:

• Significant reduction on support-staff salary expenditure by reviewing staffing structure and achieving improved efficiency

• Significant improvement in public examination results at Key Stages 4 and 5 (see Key Performance Indicators)

• Increased number of places available through implementation of new Pupil Admission Number (now 192)



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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 Newlands Girls’ School for the period 1 October 2015 to 31 August 2016 and up to the date of approval of the annual report and financial statements. CAPACITY TO HANDLE RISK The board of trustees has reviewed the key risks to which the academy trust is exposed together with the operating, financial and compliance controls that have been implemented to mitigate those risks. The board of trustees is of the view that there is a formal on-going process for identifying, evaluating and managing the academy trust's significant risks that has been in place for the period 1 October 2015 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 decided:

• not to appoint an internal auditor. However the trustees have appointed MacIntyre Hudson, the

external auditor, to perform additional checks.



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THE RISK AND CONTROL FRAMEWORK (continued) The role includes giving advice on financial matters and performing a range of checks on the academy trust’s financial systems. In particular the checks carried out in the current period included:

• testing of payroll systems

• testing of purchase systems

• testing of control account/ bank reconciliations

As the school converted to an Academy on 1st October the first Internal Control Audit took place in June 2016. MacIntyre Hudson reported their findings to the board of trustees, through the finance committee on the operation of the systems of control and on the discharge of the board of trustees’ financial responsibilities.

REVIEW OF EFFECTIVENESS As accounting officer the Headteacher has responsibility for reviewing the effectiveness of the system of internal control. During the period in question the review has been informed by:

• the work of the external auditor

• the financial management and governance self-assessment process

• the work of the executive managers within the academy trust, including the responsible officer, 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 external auditors 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 6 December 2016 and signed on its behalf by: …………………………………………… …………………………………………… J Simpson L Ceska Chair of Trustees Accounting Officer


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

Page 13

As accounting officer of Newlands Girls’ School I have considered my responsibility to notify the academy trust board of trustees 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 the academy trust and the Secretary of State for Education. As part of my consideration I have had due regard to the requirements of the 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 the academy trust, or material non-compliance with the terms and conditions of funding under the academy 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. ……………………………………………….. L Ceska Accounting officer 6 December 2016

NEWLANDS GIRLS' SCHOOL


STATEMENT OF TRUSTEES' RESPONSIBILITIESFOR THE PERIOD ENDED 31 AUGUST 2016

The Trustees (who act as governors of Newlands Girls' School and are also the directors of the charitablecompany for the purposes of company law) are responsible for preparing the Trustees' Report and the financialstatements in accordance with the Annual Accounts Direction issued by the Education Funding Agency, UnitedKingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable lawand 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 6 December 2016 and signed on its behalf by:

................................................

J SimpsonChair of Trustees

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INDEPENDENT AUDITORS' REPORT ON THE FINANCIAL STATEMENTS TO THE MEMBERS OFNEWLANDS GIRLS' SCHOOL

We have audited the financial statements of Newlands Girls' School for the period ended 31 August 2016 whichcomprise the Statement of Financial Activities Incorporating Income and Expenditure Account, the BalanceSheet, the Statement of Cash Flows and the related notes. The financial reporting framework that has beenapplied in their preparation is applicable law, United Kingdom Accounting Standards (United Kingdom GenerallyAccepted Accounting Practice) including FRS 102 "The Financial Reporting Standard applicable in the UK andRepublic of Ireland" and the Academies Accounts Direction 2015 to 2016 issued by the Education FundingAgency. 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 period 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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INDEPENDENT AUDITORS' REPORT ON THE FINANCIAL STATEMENTS TO THE MEMBERS OFNEWLANDS GIRLS' 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 financialperiod 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 returns adequate for our audit have not been

received from branches not visited by us; 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: 14 December 2016

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

In accordance with the terms of our engagement letter dated 2 June 2016 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 Newlands Girls' School during the period 1 October 2015 to 31 August 2016 have been applied tothe purposes identified by Parliament and the financial transactions conform to the authorities which governthem.

This report is made solely to Newlands Girls' School and the EFA in accordance with the terms of ourengagement letter. Our work has been undertaken so that we might state to Newlands Girls' School and the EFAthose matters we are required to state in a report and for no other purpose. To the fullest extent permitted bylaw, we do not accept or assume responsibility to anyone other than Newlands Girls' School and the EFA, for ourwork, for this report, or for the conclusion we have formed.

RESPECTIVE RESPONSIBILITIES OF NEWLANDS GIRLS' SCHOOL'S ACCOUNTING OFFICER AND THEREPORTING ACCOUNTANT

The accounting officer is responsible, under the requirements of Newlands Girls' School's funding agreementwith the Secretary of State for Education dated 25 September 2015, and the Academies Financial Handbookextant from 1 September 2015, for ensuring that expenditure disbursed and income received is applied for thepurposes intended by Parliament and the financial transactions conform to the authorities which govern them.

Our responsibilities for this engagement are established in the United Kingdom by our profession's 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 period 1 October 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.

Page 17



INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO NEWLANDSGIRLS' SCHOOL 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 a sample of payroll payments to staff;

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

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

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

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 period 1 October 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

14 December 2016

Page 18



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

Restrictedfunds

Restrictedfixed asset

fundsUnrestricted

fundsTotal

funds

Note2016

£2016

£2016

£2016

£

INCOME FROM:

Donations & capital grants: Transfer from local authority

on conversion 2 (621,103) 27,397,228 - 26,776,125 Other donations and capital

grants 2 29,995 101,049 320 131,364Charitable activities 3 5,268,492 - - 5,268,492Other trading activities 4 6,122 - 109,164 115,286Investments 5 1,478 - 112 1,590

TOTAL INCOME 4,684,984 27,498,277 109,596 32,292,857

EXPENDITURE ON:

Raising funds - - 22,807 22,807Charitable activities 5,601,395 303,466 648 5,905,509

TOTAL EXPENDITURE 7 5,601,395 303,466 23,455 5,928,316

NET INCOME /(EXPENDITURE) BEFOREOTHER RECOGNISEDGAINS AND LOSSES

(916,411)

27,194,811

86,141

26,364,541

Actuarial losses on definedbenefit pension schemes 24 (899,000) - - (899,000)

NET MOVEMENT IN FUNDS

(1,815,411)

27,194,811

86,141

25,465,541 RECONCILIATION OF FUNDS:

Total funds brought forward - - - -

TOTAL FUNDS CARRIEDFORWARD

(1,815,411)

27,194,811

86,141

25,465,541

All of the Academy's activities derive from acquisitions in the current financial period.

The notes on pages 22 to 44 form part of these financial statements.

Page 19


(A Company Limited by Guarantee)REGISTERED NUMBER: 09683579

BALANCE SHEETAS AT 31 AUGUST 2016

2016Note £ £

FIXED ASSETS Tangible assets 14 27,147,686 CURRENT ASSETS Stocks 15 6,276 Debtors 16 103,627 Cash at bank and in hand 388,870

498,773 CREDITORS: amounts falling due within one year 17 (95,918)

NET CURRENT ASSETS 402,855

TOTAL ASSETS LESS CURRENT LIABILITIES 27,550,541 Defined benefit pension scheme liability 24 (2,085,000)

NET ASSETS INCLUDING PENSION SCHEME LIABILITIES 25,465,541

FUNDS OF THE ACADEMY Restricted income funds: Restricted income funds 18 269,589 Restricted fixed asset funds 18 27,194,811

Restricted income funds excluding pension liability 27,464,400 Pension reserve (2,085,000)

Total restricted income funds 25,379,400 Unrestricted funds 18 86,141

TOTAL FUNDS

25,465,541

The financial statements were approved by the Trustees, and authorised for issue, on 6 December 2016 and aresigned on their behalf, by:

................................................

J Simpson Chair of Trustees

The notes on pages 22 to 44 form part of these financial statements.

Page 20



STATEMENT OF CASH FLOWSFOR THE PERIOD ENDED 31 AUGUST 2016

11 monthsended

31 August 2016

Note £

Cash flows from operating activities Net cash provided by operating activities 20 340,155

Cash flows from investing activities:Dividends, interest and rents from investments 1,590Purchase of tangible fixed assets (53,924)Capital grants from DfE/EFA 94,217Capital funding received from sponsors and others 6,832

Net cash provided by investing activities 48,715

Change in cash and cash equivalents in the period 388,870

Cash and cash equivalents brought forward -

Cash and cash equivalents carried forward 21 388,870

All of the cash flows are derived from acquisitions in the current financial period.

Page 21



NOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD 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.

Newlands Girls' School constitutes a public benefit entity as defined by FRS 102.

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 for Education.

Page 22




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.

Sponsorship income provided to the Academy which amounts to a donation is recognised in theStatement of Financial Activities Incorporating Income and Expenditure Account in the period inwhich it is receivable, where there is certainty of receipt and it is measurable.

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 conditionswhere the receipt is probable 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.

Page 23





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.

Termination benefits are recognised when employment is terminated by the academy before normalretirement dates or whenever the employee accepts voluntary redundancy in exchange fortermination benefits.

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred intrading activities that raise funds.

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.

Page 24





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.Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment.Depreciation is not charged on long-term leasehold land. Depreciation is provided at rates calculatedto write off the cost of fixed assets, less their estimated residual value, over their expected usefullives on the following bases:

Long-term leasehold property - 2% straight lineFixtures and fittings - 20% straight lineComputer equipment - 33.3% straight line

1.7 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.

1.8 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.

1.9 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance forobsolete and slow-moving stocks.

1.10 Debtors

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

Page 25





1.11 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.

1.12 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 ofthe amounts required to settle the obligation. Where the effect of the time value of money ismaterial, the provision is based on the present value of those amounts, discounted at the pre-taxdiscount rate that reflects the risks specific to the liability. The unwinding of the discount isrecognised within interest payable and similar charges.

1.13 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.

1.14 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.

1.15 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 24, 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.

Page 26





1.15 Pensions (continued)

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.

1.16 Conversion to an academy trust

The conversion from a state maintained school to an academy trust involved the transfer ofidentifiable assets and liabilities and the operation of the school for £NIL consideration. Thesubstance of the transfer is that of a gift and it has been accounted for on that basis as set out below.

The assets and liabilities transferred on conversion from Newlands Girls School to an academy trusthave been valued at their fair value. The fair value has been derived based on that of equivalentitems. The amounts have been recognised under the appropriate balance sheet categories, with acorresponding amount recognised in Donations - transfer from local authority on conversion in theStatement of Financial Activities Incorporating Income and Expenditure Account and analysed underunrestricted funds, restricted general funds and restricted fixed asset funds.

Further details of the transaction are set out in note 22.

Page 27





1.17 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 24, 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

Restrictedfunds


fundsUnrestricted

fundsTotal

funds2016

£2016

£2016

£2016

£

Transfer from local authority on conversion (621,103) 27,397,228 - 26,776,125

Donations 29,995 - 320 30,315Capital grants - 101,049 - 101,049

Total donations and capital grants (591,108) 27,498,277 320 26,907,489

Page 28




3. FUNDING FOR ACADEMY'S EDUCATIONAL OPERATIONS

Restrictedfunds

Unrestrictedfunds

Totalfunds

2016£

2016£

2016£

DfE/EFA grants

General Annual Grant 4,939,549 - 4,939,549Pupil Premium 85,951 - 85,951Other DfE/EFA Grants 24,843 - 24,843

5,050,343 - 5,050,343

Other government grants

Local Authority Grants 67,283 - 67,283

67,283 - 67,283

Other funding

Trip and other income 150,866 - 150,866

150,866 - 150,866

5,268,492 - 5,268,492

4. OTHER TRADING ACTIVITIES

Restrictedfunds

Unrestrictedfunds

Totalfunds

2016£

2016£

2016£

Other self generated income 2,580 - 2,580Hire of facilities and rental income 3,542 109,164 112,706

6,122 109,164 115,286

5. INVESTMENT INCOME

Restrictedfunds

Unrestrictedfunds

Totalfunds

2016£

2016£

2016£

Investment income 1,478 112 1,590

Page 29




6. CHARITABLE ACTIVITIES

Totalfunds2016

£DIRECT COSTS - EDUCATIONAL OPERATIONS

Wages and salaries 4,085,063Educational supplies 91,294Examination fees 93,780Staff development 9,142Educational consultancy 14,553School trips expenditure 140,358Other direct costs 656

4,434,846

SUPPORT COSTS - EDUCATIONAL OPERATIONS

Wages and salaries 702,759Depreciation 303,466Pension finance cost 37,000Technology costs 48,600Recruitment and support 35,342Maintenance of premises and equipment 39,925Cleaning 6,754Rates 37,714Energy 79,041Non-staff related insurance 29,651Security and transport 11,266Catering supplies 32,508Legal and professional 46,991Other support costs 45,291Governance costs 14,355

1,470,663

5,905,509

Page 30




7. EXPENDITURE

Staff costs Premises Other costs Total2016

£2016

£2016

£2016

£

Expenditure on raising funds 12,999 5,546 4,262 22,807

Academy's educational operations: Direct costs 4,085,063 - 349,783 4,434,846 Support costs 702,759 487,276 280,628 1,470,663

4,800,821 492,822 634,673 5,928,316

In 2016, of the total expenditure, £23,455 was to unrestricted funds and £5,601,395 was to restrictedfunds and £303,466 was to restricted fixed asset funds.

8. EXPENDITURE - ANALYSIS OF SPECIFIC EXPENSES

Included within expenditure are the following transactions:Individual items above £5,000

Total Amount Reason £ £

Gifts made by the trust 17 -

9. NET INCOMING RESOURCES/(RESOURCES EXPENDED)

This is stated after charging:

11 monthsended

31 August 2016

£

Depreciation of tangible fixed assets:- owned by the charity 303,466

Auditors' remuneration - audit 9,000Auditors' remuneration - other services 4,815Operating lease rentals 15,172

Page 31




10. STAFF COSTS

Staff costs were as follows:

11 monthsended

31 August 2016

£

Wages and salaries 3,806,122Social security costs 314,389Operating costs of defined benefit pension schemes 625,817

4,746,328Supply teacher costs 51,719Staff restructuring costs 2,774

4,800,821

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

11 monthsended

31 August 2016

No.

Teaching 80Administration and support 89Management 10

179

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

11 monthsended

31 August 2016

No.

In the band £60,001 - £70,000 2In the band £90,001 - £100,000 1

All of the above participated in the Teacher's Pension Scheme. During the year ended 31 August 2016,pension contributions for these staff amounted to £34,888.

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£623,146.

Page 32




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 Principal and other staff Trustees only receive remuneration in respect ofservices they provide undertaking the roles of principal and other staff members under their contracts ofemployment, and not in respect of their role as Trustees. The value of Trustees' remuneration and otherbenefits was as follows:

11 monthsended

31 August 2016

£

L Ceska RemunerationPension contributions paid

90,000-95,00010,000-15,000

L Allaway RemunerationPension contributions paid

40,000-45,0005,000-10,000

During the period, expenses totalling £39 relating to travel and subsistence for non-governor activitieswas reimbursed to one Trustee.

12. TRUSTEES' AND OFFICERS' INSURANCE

The Academy Trust entered into the Department for Education's Risk Protection Arrangement inSeptember 2015. This protects Trustees and officers from claims arising from negligent acts, errors oromissions occurring whilst on academy business. The insurance provides unlimited cover. The cost forthe year ended 31 August 2016 is not separately identifiable.

13. PENSION FINANCE COST

11 monthsended

31 August 2016

£

Interest on pension scheme liabilities (37,000)

Page 33




14. TANGIBLE FIXED ASSETS

Long-termleasehold

propertyFixtures and

fittingsComputer

equipment Total£ £ £ £

Cost

Additions 23,150 28,232 2,542 53,924Transfer on conversion 27,367,466 8,460 21,302 27,397,228

At 31 August 2016 27,390,616 36,692 23,844 27,451,152

Depreciation

Charge for the period 295,187 2,140 6,139 303,466

At 31 August 2016 295,187 2,140 6,139 303,466

Net book value

At 31 August 2016 27,095,429 34,552 17,705 27,147,686

Included in long-term leasehold property is long-term leasehold land at valuation of £11,266,350 which isnot depreciated.

15. STOCKS

2016 £

Catering stock 6,276

16. DEBTORS

2016 £

Trade debtors 5,123Prepayments and accrued income 71,246VAT recoverable 27,258

103,627

Page 34




17. CREDITORS: Amounts falling due within one year

2016 £

Trade creditors 33,298Other creditors 9,016Accruals and deferred income 53,604

95,918

£Deferred income

Deferred income at 1 October 2015 -Resources deferred during the year 33,034

At the balance sheet date the Academy Trust was holding funds received in advance for school trips andrates relief.

Page 35




18. STATEMENT OF FUNDS

Broughtforward Income Expenditure

Transfersin/(out)

Gains/(losses)

Carriedforward

£ £ £ £ £ £

Unrestrictedfunds

Generalunrestricted funds - 109,596 (23,455) - - 86,141

Restricted funds

General AnnualGrant - 4,939,549 (5,094,894) 155,345 - -

Pupil premium - 85,951 (85,951) - - -Other DfE/EFA

revenue grants - 24,843 (24,843) - - -Local authority

grants - 67,283 (67,283) - - -School fund - 226,273 (132,187) - - 94,086Other restricted

funds - 81,237 (81,237) - - -Transfer on

conversion fromLA - 330,848 - (155,345) - 175,503

Pension reserve - (1,071,000) (115,000) - (899,000) (2,085,000)

- 4,684,984 (5,601,395) - (899,000) (1,815,411)

Restricted fixed asset funds

DfE/EFA capitalgrants - 94,217 - (47,092) - 47,125

Donated assets - 6,832 - (6,832) - -Fixed asset fund - 27,397,228 (303,466) 53,924 - 27,147,686

- 27,498,277 (303,466) - - 27,194,811

Total restrictedfunds - 32,183,261 (5,904,861) - (899,000) 25,379,400

Total of funds - 32,292,857 (5,928,316) - (899,000) 25,465,541

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

General unrestricted funds can be spent on meeting objectives at the discretion of the Trustees.

The transfer from other restricted funds to General Annual Grant fund is to top up General Annual Grantfunds.

The other DfE/EFA restricted funds represents other funding received from the government which does

Page 36




18. STATEMENT OF FUNDS (continued)

not form part of GAG but is received in relation to specific purposes.

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 Authority 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 pension reserve scheme deficit represents the future pension funding requirements which will be metfrom future employer pension contributions.

Restricted fixed asset funds represent the amounts invested in fixed assets and unspent amounts at theperiod end.

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.

19. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Restrictedfunds


fundsUnrestricted

fundsTotal

funds2016

£2016

£2016

£2016

£

Tangible fixed assets - 27,147,686 - 27,147,686Current assets 365,507 47,125 86,141 498,773Creditors due within one year (95,918) - - (95,918)Provisions for liabilities and charges (2,085,000) - - (2,085,000)

(1,815,411) 27,194,811 86,141 25,465,541

Page 37




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

2016 £

Net income for the year (as per Statement of financial activities) 26,364,541

Adjustment for:Depreciation charges 303,466Dividends, interest and rents from investments (1,590)Increase in stocks (6,276)Increase in debtors (103,627)Increase in creditors 95,918Capital grants from DfE and other capital income (101,049)Defined benefit pension scheme obligation inherited 1,071,000Fixed assets transferred from local authority on conversion (27,397,228)Pension adjustments 115,000

Net cash provided by operating activities 340,155

21. ANALYSIS OF CASH AND CASH EQUIVALENTS

2016 £

Cash in hand 388,870

Total 388,870

Page 38




22. CONVERSION TO AN ACADEMY TRUST

On 1 October 2015 Newlands Girls' School converted to academy trust status under the Academies Act2010 and all the operations and assets and liabilities were transferred to Newlands Girls' School fromRoyal Borough of Windsor and Maidenhead for £NIL consideration.

The transfer has been accounted for as a combination that is in substance a gift. The assets and liabilitiestransferred were valued at their fair value and recognised in the Balance Sheet under the appropriateheadings with a corresponding net amount recognised as a net gain in the Statement of FinancialActivities Incorporating Income and Expenditure Account as Donations - transfer from local authority onconversion

The following table sets out the fair values of the identifiable assets and liabilities transferred and ananalysis of their recognition in the Statement of Financial Activities Incorporating Income and ExpenditureAccount.

Restrictedfunds

£


funds£

Unrestricted funds

£

Totalfunds

£

Tangible fixed assets

Leasehold land and buildings - 27,367,466 - 27,367,466 - Other tangible fixed assets - 29,762 - 29,762

Budget surplus/(deficit) on LA funds 330,848 - - 330,848Budget surplus/(deficit) on other school funds 119,049 - - 119,049

LGPS pension surplus/(deficit) (1,071,000) - - (1,071,000)

Net assets/(liabilities) (621,103) 27,397,228 - 26,776,125

The above net assets include £449,897 that were transferred as cash.

Leasehold land and buildings comprise the land and buildings of the predecessor school. These are heldon 125 year peppercorn lease with the Royal Borough of Windsor and Maidenhead who hold the freeholdinterest in the Land. The land is valued at £11,266,350 and buildings £16,101,116 at the conversion date.

The LGPS pension deficit relates to the pension deficit inherited from the predecessor schools in respectof the cumulative employee service to the date of conversion.

23. CAPITAL COMMITMENTS

At 31 August 2016 the Academy had capital commitments as follows: 2016

£

Contracted for but not provided in these financial statements 16,814

Page 39




24. 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.

As described in note 22 the LGPS obligation relates to the employees of the academy trust, who were theemployees transferred as part of the conversion from the maintained school and new employees whowere eligible to, and did, join the Scheme in the year . The obligation in respect of employees whotransferred on conversion represents their cumulative service at both the predecessor school and theacademy trust at the balance sheet date.

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 financialperiod.

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.

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%.

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24. PENSION COMMITMENTS (continued)

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 £426,992.

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 period ended 31 August 2016 was £167,000 of which employer'scontributions totalled £123,000 and employees' contributions totalled £44,000. The agreed contributionrates for future years are 16.6% for employers and 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.Principal actuarial assumptions:

2016

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

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

2016

Retiring todayMales 22.9Females 26.2

Retiring in 20 yearsMales 25.2Females 28.5

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

Fair value at31 August

2016£

Equities 546,000Debt instruments 153,000Property 145,000GiltsCashAlternative assets and other

18,00047,000

215,000

Total market value of assets 1,124,000

The actual return on scheme assets was £125,000.

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

11 monthsended

31 August 2016

£

Current service cost (net of employee contributions) (200,000)Net interest cost (37,000)Past service cost (970)Administration expenses (1,000)

Total (238,970)

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

11 monthsended

31 August 2016

£

Upon conversion 1,907,000Current service cost 200,000Interest cost 71,000Contributions by employees 44,000Actuarial losses 990,000Benefits paid (3,000)

Closing defined benefit obligation 3,209,000

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

11 monthsended

31 August 2016

£

Upon conversion 836,000Return on plan assets (excluding net interest on the net defined pension liability) 34,000Actuarial gains 91,000Contributions by employer 123,000Contributions by employees 44,000Benefits paid (3,000)Administration expenses (1,000)

Closing fair value of scheme assets 1,124,000

The amount shown in the balance sheet is:

2016 £

Present value of defined benefit obligation (3,209,000)Fair value of scheme assets 1,124,000

Defined benefit pension scheme liability (2,085,000)

25. 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£

Amounts payable:

Within 1 year 5,239Between 1 and 5 years 880

Total 6,119

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. RELATED PARTY TRANSACTIONS

No related party transactions took place in the period of account, other than certain trustees’ remunerationand expenses already disclosed in note 11.

The Academy Trust received donations of £10,549 from Newlands Parents Association which organisesevents to raise funds for the Academy. Newlands Parents Association is not controlled by the Academy.

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(A Company Limited by Guarantee) TRUSTEES' REPORT AND ... · FOR THE PERIOD ENDED 31 AUGUST 2016...

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