SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE … · (Resigned 11 December 2012) Ms J S Bloor...

SHIREBROOK ACADEMY

COMPANY LIMITED BY GUARANTEE

ANNUAL REPORT AND FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2013

REGISTERED NUMBER: 06628631

SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

FINANCIAL STATEMENTS


C O N T E N T S

Page Reference and administration details 1 - 3 Governors Annual Report 4 -14 Governance statement 15 - 18 Statement on Regularity, Propriety, and Compliance 19 Statement of Governors’ responsibilities 20 Independent auditor's report to the members 21 - 22

Independent reporting accountant’s assurance 23 - 24 report on regularity to Shirebrook academy trust limited and the education funding agency

Statement of financial activities (incorporating the 25 - 26 income and expenditure account) Balance sheet 27 - 28 Cash flow statement 29 Accounting policies 30 - 34 Notes to the financial statements 34 - 53


REFERENCE AND ADMINISTRATIVE DETAILS


REGISTERED CHARITY NAME: Shirebrook Academy

COMPANY REGISTRATION NUMBER: 06628631 (England and Wales)

PRINCIPAL OFFICE: Common Lane Shirebrook NG20 8QF

REGISTERED OFFICE: Derbyshire County Council County Hall Matlock Derbyshire DE4 3AG

THE GOVERNORS: Mr R J Tooth (Chairman) † (Resigned 1 September 2012) Mrs B Rogers (Staff Governor) (Resigned 11 December 2012) Ms J S Bloor (Principal and Accounting Officer)* Mr S West * † (Chairman from 1 September 2012) Cllr M Stockdale* (Local Authority Governor) Mr A P Brickles* † Mr G A Warrener † Mrs D S McBroom (Parent Governor) Mr R S Ibbotson †

Mr L J Floyd (Co-opted Governor) Mrs N J Heathcote (Staff Governor)

Mr S Dale*† Mr M Beck* (Co-opted Governor) (Appointed 25 September 2013) Dr M Mitton (Staff Governor) (Appointed 10 September 2013) *Members of the Business and Operations Committee † Sponsor Governor

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SHIREBROOK ACADEMY




SENIOR MANAGEMENT TEAM: Senior Vice Principal (Retired 31 August 2013) Mr B Midgley Vice Principal Standards Mr T Croft Director of Finance and Support Services Mr D S Plummer Assistant Principal Community Mr A Gilbert Assistant Principal Post 16 and ICT Mrs R Skelton Assistant Principal Examinations and Rewards Mr G Topham Assistant Principal Intervention and Attendance Mr N Stafford Assistant Principal Support for Learning Mrs E Cartledge (From 1 January 2013)

SECRETARY: Mr D Plummer CLERK TO THE GOVERNORS: Mrs J Johnson AUDITORS: ApC Chartered Accountants and Statutory Auditors 7 St John Street Mansfield Nottinghamshire NG18 1QH

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PRINCIPAL BANKERS: Ipswich Building Society PO Box 547 Suffolk IP3 9WZ Scottish Widows Bank PO Box 12757 67 Morrison Street Edinburgh EH3 8YJ The Cooperative Bank Balloon Street Manchester M60 4EP Principality Building Society

Principality Commercial PO Box 89 Principality Buildings Queen Street Cardiff CF10 1UA

Santander Business Banking Bridle Road Bootle Merseyside L30 4GB Ulster Bank Ltd 11-16 Donegall Square East Belfast BT1 5UB NatWest Bolton Customer Services Centre PO Box 2027, Parklands De Havilland Way Horwich, Bolton BL6 4YU Virgin Money Jubilee House Gosforth Newcastle Upon Tyne NE3 4PL INVESTMENT ADVISORS: St James’s Place 1 Tetbury Road Cirencester Gloucestershire GL7 1FP

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GOVERNORS ANNUAL REPORT (CONTINUED)


The Governors, who are also directors for the purposes of company law, have pleasure in presenting their report and the audited financial statements of the charity for the year ended 31 August 2013.

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 Governors act as the Trustees for the charitable activities of Shirebrook Academy and are also the directors of the Charitable Company for the purposes of company law. Details of Governors who served throughout the year except as noted are included in the Reference and Administrative Details on page 1.

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 he/she is a member, or within one year after he/she ceases to be a member, such amount as may be required, not exceeding £10, for the debts and liabilities contracted before they cease to be a member. Principal Activities The principal activity of Shirebrook Academy is to advance education for the public benefit by establishing and developing a school offering a broad curriculum with a strong emphasis on science and construction.

Method of Recruitment and Appointment or Election of Governors

The Articles of Association states that the following Governors may be appointed:

- Up to nine sponsor Governors (appointed by the Principal Sponsor, ALLRoads)

- One Local Authority Governor (appointed by the Local Authority)

- One Parent Governor.

- The Principal

Additionally the Governing Body may appoint up to three co-opted governors. The Secretary of State may also appoint additional Governors in certain circumstances. There are two staff Governors whose positions were approved by the Principal Sponsor. Their appointments are decided by a vote of the members of staff of the Academy. The appointment of the Parent Governor is determined by means of an election. Except for the Principal Sponsor and the Principal, Governors are subject to retirement after 4 years of service but are eligible for re-appointment or re-election at the meeting at which they retire.

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GOVERNORS ANNUAL REPORT (CONTINUED) YEAR ENDED 31 AUGUST 2013

Policies and Procedures Adopted for the Induction and Training of Governors

All Governors are given the opportunity to attend training sessions. Initial training is offered to new Governors covering the main elements of the position, including the legal framework and Governor responsibilities. Each year all members of the Governing body are offered updates on relevant issues and changes in legislation etc. The topics covered are regularly reviewed to ensure that Governors are kept up to date as far as possible.

Organisation The Governing Body is responsible for the strategic direction of the Academy. The Governing Body reviews progress towards educational objectives and results. They also approve major expenditure requests, set the budget for the following year, and set the organisational staffing structure. There are three subcommittees in place to which specific responsibilities are delegated by the main Governing Body:

- Business and Operations Committee – this reviews the financial position of the academy, and has

limited delegated powers to approve revenue and capital expenditure, disposal of assets and changes

to the staffing structure of the Academy. This subcommittee also reviews issues relating to Human

Resources, Health and Safety, Premises, and Administration.

- Curriculum Subcommittee – this subcommittee reviews the educational progress of the Academy

towards its objectives, the content of its curriculum, timetabling, student activities and achievement.

- Co-location Subcommittee – this subcommittee is a joint committee with Stubbin Wood School with

which Shirebrook Academy will co-locate into its new building. It is concerned with finding the best

means of fulfilling each governing body’s vision and responsibilities to ensure sound management of the

joint/shared facilities which are to be located on the new shared Shirebrook Academy/Stubbin Wood

site.

The Principal is the designated Accounting Officer of the Academy and has overall responsibility for the day to day financial management of the Charitable Company. The Principal has delegated responsibility for low values of expenditure to specific budget holders who are each responsible for managing their own departments within the constraints of their allocated budgets. A system of financial controls is in place to manage this process. The Principal manages the Academy on a daily basis supported by a Senior Leadership Team. The Senior Leadership Team meets frequently to discuss emerging matters and to help to develop strategies for future development to be put to the Principal and the Governing Body as required for approval. Each member of the Senior Leadership Team has specific responsibilities to assist the Principal to manage certain aspects of the Academy. Please refer to the Reference and Administrative details on page 1 for more information.

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GOVERNORS ANNUAL REPORT (CONTINUED) YEAR ENDED 31 AUGUST 2013

Risk management The major risks to which the Academy is exposed are as follows:

- Loss of (or reduction in) funding - Loss of building or facilities preventing the delivery of education - Loss of members of staff (either suddenly or gradually over time) - Loss of reputation - Lack of safeguarding of students - Funding of pension deficits under the Local Government Pension Scheme (LGPS).

The Senior Leadership Team have considered the these risks. Policies and procedures have been put into place to minimise these risks, including budget management and forecasting procedures, the procurement of adequate insurance cover, investing in staff training and continuing professional development, and continued local marketing and advertising highlighting the achievement of our students. We also include a budgeted reserve for staff cover costs, and maintain a large number of policies and procedures which protect our staff, students and the Academy, also reducing the risk of safeguarding failures. The pension scheme is reviewed by qualified actuaries on behalf of the Academy. There is currently a deficit on this scheme as disclosed in note 26. The Trustees of the LGPS pension scheme arrange for appropriate contribution rates to be paid by the members and the employer to ensure that the pension scheme is properly funded over time.

Connected Organisations, including Related Party Relationships

Shirebrook Academy is a company controlled by its Principal Sponsor, ALLRoads, a Direct Labour Organisation (DLO) of Derbyshire County Council. The Principal Sponsor has the power to appoint and remove Sponsor Governors. During the year ended 31 August 2013 there was a maximum of seven Sponsor Governors out of a total of 11 Governors in service at any one time.

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OBJECTIVES AND ACTIVITIES Objectives, Strategies and Activities

This was the third full year of operation for Shirebrook Academy. We moved into our brand new premises in April 2013, and now have the benefit of top class facilities. The old premises are now being demolished and we expect to take delivery of the site from the demolition company in January 2014. Our target for 2012-13 relating to student attendance was 95.5% and we had a target for 66% of our students to achieve 5 A*-C or equivalent passes including English and Mathematics. Following the successes of this year our target for student attendance has been increased to 95.6% and our target for students to achieve 5 A*-C or equivalent passes including English and Mathematics has been set at to 66%. Our post sixteen programme is now in its second year. In August 2013 the students leaving all achieved at least one grade higher than targeted demonstrating very high value added. All students have progressed into employment or higher education with the exception of one student who is currently undergoing medical treatment. The Shirebrook Academy Endowment Fund was launched in 2010. We use the returns on the £2,000,000 investment from a donation from our Sponsor (ALLRoads) for the following purposes:

- assisting and supporting the education of students at the Academy including the provision of awards, prizes or other rewards;

- relieving the financial hardship of pupils and ex-pupils of the school by the provision of bursaries, scholarships, equipment or in any other way the Trustees think fit to enable them to pursue their education;

- providing grants or other financial assistance to assist pupils in financial need to undertake curricular activities (including educational travel in the United Kingdom or overseas)

- providing or assisting in the provision of services or facilities at the Academy not provided for under the funding agreement; and

- fostering closer ties between the Academy and community, including promoting education in the community served by the Academy.

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PUBLIC BENEFIT STATEMENT

The primary purpose of Shirebrook Academy is the advancement of education within the local area. To this end, the Academy is developing strong links with local Primary Schools, which will lead to smooth transition from Primary to Secondary education for the majority of students and in turn this will contribute to the community ethos upheld by the Academy and underpinned by its Admissions Policy.

The Academy will be giving a high priority to providing public benefit to a cross section of the community regardless of family background. Perhaps the greatest benefit that the Academy can offer is the provision of an education that maximises each student's potential to develop principled, informed, open minded and confident citizens who respect the beliefs of others and who are determined to make a positive contribution to society.

The Academy has enhanced the provision of services to the community during the 2012-13 academic year. In addition to our annual Community Fun Day and Winter Wonderland events, we continued to hold Community Nights on Wednesday evenings prior to moving into our new buildings. The Academy employed two Youth Workers to improve the opportunities young people have to undertake activities outside of school time. The Academy has also appointed a third party, Facilities for All, to manage its brand new facilities out of hours. With an initial focus on the use of the artificial football pitch by various local football clubs, Facilities for All have started to make the Academy’s facilities available throughout the week for a variety of different sporting organisations.

The Governors confirm that they have complied with the duty in Section 4 of the Charities Act 2006 to have due regard to the Charity Commission's general guidance on public benefit. ACHIEVEMENTS AND PERFORMANCE Shirebrook opened to its students as an Academy in September 2010. The previous school’s results had been

44% 5 A* to C with English and Maths and 59% 5 A* to C (August 2010). Three years later, Shirebrook Academy

had improved its 5 A* to C, including English and Maths, by twenty percent to 64%; as well as its 5 A* to C by

forty one percent to 100%.

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During the year, the Academy was inspected by Ofsted and received a grade of “Outstanding”. The exams results have again been fantastic in 2013. Shirebrook is one of the highest achieving schools in the Bolsover and Staveley area with only Netherthorpe being higher. 100% (2012: 97%) of our students gained 5 or more A*-C passes and 64% (2012: 65%) of them did so with Mathematics and English. 100% (2012: 100%) of our students gained 5 or more A*-G passes. We continue to be one of the most improved schools in Derbyshire and have a very high rate of success nationally in terms of the progress our students make. Our attendance rate has improved to 95.4% this year (2012: 95.1%). During the year the new building for the Academy continued to be constructed. We moved into the new premises on time during April 2013. The move was well planned and caused minimal disruption to student learning. We have continued our aim to involve the community out of school hours by holding a Winter Wonderland event in December and we held our third Annual Fun Day in the summer which once again attracted a large number of visitors to the site. We are now allowing local football clubs to use out artificial pitch and our recently renovated external grass pitches and have secured long term bookings with our partners Shirebrook Rangers and Chesterfield FC through Facilities for All who are managing our facilities on our behalf outside of school hours. Once again this year, the Academy provided a ‘summer school’ for a week at the start of the summer holidays followed by a ‘summer camp’ in late August 2013. The Endowment Fund has been used to support the professional development of a number of members of staff during the year. PUPIL PREMIUM For the Academic Year 2012-2013, the Academy was granted £268,000 (2012: £128,000) in pupil premium. This was the second full academic year which the Academy had received such funding. This money is given to target children on free school meals (FSMs) to enhance their progress. The money was spent in a variety of ways, including:

Running intervention groups in Y9, Y10 and Y11 during registration

Funding of £50 per student that could be spent on uniform/trips/extra music tuition etc.

Revision Weekends and Saturday morning workshops either reduced or free for FSM students.

Alternative curriculum Pathways for students.

Staff CPD to enhance questioning and staff skills in ensuring students to make adequate progress.

Employing extra staff in English to ensure good progress.

Providing extra rewards for students to enhance confidence and inspire students to work harder.

Various workshops, interventions that provided pastoral support and build confidence amongst selected students.

Summer School that builds upon the school’s transition programme and builds confidence amongst students.

Counselling sessions

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In 2013, our FSM children gained 40% 5 A* to C GCSE passes with English and Maths (2012: 47%) compared to the national average of 37% (2012: 35%) and the benchmark figures for similar schools of 34%. Our FSM students also achieved 100% 5 A* to C (2012: 88%) compared to a national average of 58% (2012: 58%). The percentage of students on FSM who made expected levels of progress was 60% in English (2012: 56%)and 69% in Maths (2012: 72%). Consequently, FSM students made better progress than expected against benchmark and better progress nationally. This is against the backdrop of the cohort entering the school with significantly lower attainment in Literacy and Numeracy both nationally and compared to previous year groups at the academy.

The Academy saw a drop in fixed term exclusions over 2012-2013 by 5% whole school (2012: 13%). The FSM students, which the academy excluded, decreased by 9% (2012: 14%), which mirrored the reduction of exclusions across the whole Academy over the academic year.

GOING CONCERN

After making appropriate enquiries, the Governing Body 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 at note 1 of these financial statements.

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FINANCIAL REVIEW

Educational Activities

During the year, the Academy moved into new buildings (with associated furniture, fixtures and fittings) which are accounted for as a capital donation. As a result, the Academy’s fixed asset funds increased significantly in the year : fixed asset funds included £25,564,000 at the end of the year relating to these new assets (2012: £nil). Excluding the Endowment Fund and the Fixed Asset Funds, the net incoming resources of the Academy during the year were £166,000 (2012: £382,000) before adjustments for gains and losses related to investments and defined benefit pension schemes. The main element of grant income, School Budget Share, was slightly down on budget as a result of a lower than expected number of students being on roll during the year. We received slightly less Local Authority Central Spend Equivalent Grant (LACSEG) than expected, also because of a lower than estimated number of pupil numbers on roll during the year. Conversely, Pupil Premium income has been higher than expected during the year as the government increased the value of the grant per pupil midway through the year to £623/pupil and then to £900/pupil from April 2013. As a relatively new Academy, the Academy continues to benefit from start up grants although the value of such grants is falling as the Academy becomes more established. We received £204,000 in start up grants during the year (2012: £488,000). The Academy has used its grant income cautiously during the year. Excluding donated assets, we have purchased assets valued at £236k (2012: £204k), including additional contributions to enhance our new building of £116k (2012: £98k), a mower costing £20k, digital poster signs £8k and a humanoid robot for the ICT department at £10k . The Academy faces the challenge of changing funding formulae over the coming years as the system moves toward a national funding formula. The LACSEG rates also continue to reduce as this grant is replaced by the Education Services Grant. This will be partly offset by continued increases in pupil premium funding. As the final formalue are yet to be published it is uncertain how our funding levels will be affected going forward, though certain elements will be protected by a Minimum Funding Guarantee. Pupil numbers have been positively affected by our Outstanding Ofsted rating, and the forecast decline in pupil numbers is now less of a threat. Numbers will increase again after 2015/16 when larger primary school cohorts begin to feed in to the Academy. The Academy has now moved into its new building and has finished its programme of “topping up” the BSF grant to ensure that the building is fit for purpose. In light of these future uncertainties and reducing revenues we have not spent our contingencies and retained as many funds as we can to support future expenditure. This has been achieved without compromising the quality of education offered to our students and means that the Academy has been able to carry forward cumulative reserves of £1,379,000 (2012: £1,170,000) excluding endowment, fixed assets and pension reserves into the following Academic year. The cash balance of the Academy has been very healthy all year, ending the year with a balance of £1,509,000 (2011: £1,586,000) excluding endowment funds. Once our old building has been demolished, we intend to utilise a proportion of these carried forward reserves to construct a post sixteen and horticultural centre on the newly available land.

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ENDOWMENT FUND

The returns on the Endowment Fund were positive in the year, making a gain of £298,000 during the year (2012: £106,000 gain). The initial investment of £2,000,000 now stands at £2,435,000 (2012: £2,134,000). The Endowment Fund supported staff development and training and also provided student bursaries for certain students moving into higher education, and had administration expenses, all of which totalled £7,000 during the year.

RESERVES POLICY

The Academy holds reserves totalling £1,379,000 (2012: £1,170,000) excluding the Endowment Fund, fixed asset and pension funds. All expenditure is categorised according to the source of funding, with separate cost centres in operation for specific ring fenced grants. We also track unrestricted fund income and expenditure in a similar way. The remainder of our income and expenditure cost centres represent transactions on the General Annual Grant split by department. At the end of the year we have carried forward £26,149,000 (2012: £460,000) in the restricted capital fund; £461,000 (2012: £425,000) in (restricted) GAG reserves, £200,000 (2012: £nil) in a property repair reserve, and £399,000 (2012: £540,000) in unused restricted start up grant funding. The start up grant fund and the GAG reserve will be used over the forthcoming years to support our staff cost base and avoid increases in class sizes as far as possible to support the quality of learning, and to help to fund a new building on the site of our old ones designed for post-sixteen and horticultural learning. There are a number of other restricted funds representing the residual unspent element of grants received during the year totalling £211,000 (2012:£61,000) which will be spent for the purposes of the individual grants concerned, plus £108,000 (2012: £56,000) unrestricted funds carried forward at the end of the year which is being retained as contingency funding for general purposes. There was also a negative pension reserve at the year end amounting to £1,057,000 (2012: £876,000), which was calculated by the actuary.

INVESTMENT POLICY

The Academy manages its cash by reviewing the short term and medium term requirements for funds. Surplus funds are invested in bank accounts giving the best possible returns for the period of time the funds are to be invested. Apart from with our main bankers (the Cooperative Bank) no more than £250,000 (plus accumulated interest) is invested in any one institution. The Trustees of the Endowment Fund invested its funds of £2m in a variety of locations, with £300,000 invested into cash deposits and the remainder into longer term investments. We originally invested £1,700,000 into Unit Trusts, with the aim of achieving a spread of funds and therefore significant diversification of asset class including equities and fixed interest, geographical areas, and currency. The aim of this is to allow the value of the Fund’s capital to grow in the medium to long term whilst allowing withdrawals to be made from the cash deposits to further the aims of the Fund in the short term. The value of our unit trust investments had grown to £2,148,000 by 31 August 2013 and the Endowment Fund had cash deposits of £303,000 at that date.

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PLANS FOR FUTURE PERIODS

Our priority is to continue to ensure that the achievement of our students continues to improve, in terms of their pastoral wellbeing and academic success. We intend to continue to develop the curriculum offered to our students to ensure that they have the best possible education. Under a partnership with Chesterfield College we have started to offer a small number of sixth form courses in sport and health and social care. We are planning to significantly increase this offer in 2014 by expanding the partnership to include three other secondary schools in the district. Together, the four schools and Chesterfield College will be able to offer a much wider curriculum to our students. The enlarged post sixteen partnership will be known as “Aspire”. We have now moved into our new building which we share with Stubbin Wood School (which is a local authority special school) and we are already starting to work very closely with students and staff of both schools already working together. We expect to take possession of the site occupied by our old buildings in January 2014 and have started to plan how we can develop this area further, including the provision of alternative or horticultural education in that area.

FUNDS HELD AS CUSTODIAN TRUSTEE ON BEHALF OF OTHERS

None

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In so far as the Governors are aware: -there is no relevant audit information of which the Charitable Company’s auditor is unaware; and -the Governors 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.

AUDITOR

ApC are deemed to be re-appointed under Section 487(2) of the Companies Act 2006.

The report of the directors has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Signed on behalf of the Governors

Mr A P Brickles Governor Dated 11.12.13

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE GOVERNANCE STATEMENT YEAR ENDED 31 AUGUST 2013

Scope of Responsibility

As Governors, we acknowledge we have overall responsibility for ensuring that Shirebrook Academy 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 Governing Body has delegated the day-to-day responsibility to the Principal, 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 Shirebrook Academy and the Secretary of State for Education. They are also responsible for reporting to the Governing Body any material weaknesses or breakdowns in internal control.

Governanace The information on governance included here supplements that described in the Governors’ Reports and in the Statement of Governors’ responsibilities. The Governing Body has formally met 5 times during the year. Attendance during the year at meetings of the sub committees was as follows: Governor Meetings attended Out of a possible Mr A Brickles 4 5 Mrs B Rogers 0 2 Mr S West (Chairman appointed 1/9/12) 5 5 Ms J Bloor (Principal) 5 5 Cllr M Stockdale 1 5 Mr G A Warrener 5 5 Mrs D Mcbroom 5 5 Mr R S Ibbotson 4 5 Mr L Floyd 1 5 Mrs N Heathcote 4 5 Mr S Dale 2 5

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GOVERNANCE STATEMENT (CONTINUED) YEAR ENDED 31 AUGUST 2013

The Governing Body sub committees have formally met 14 times during the year. The Academy has 3 sub committees.

Student and Curriculum Committee (S&C) (4 times)

Business Operations Committee (BO) (4 times)

Co-Location Committee (CL) (10 times) (The co-location committee was established in order to prepare for the move into a new building, also to be occupied by a local authority school (Stubbin wood school) and to assess and overcome any difficulties that may occur as a result of this.)

Attendance during the year at meetings of the sub committees was as follows: Governor Committees Meetings attended Out of a possible Mr A Brickles BO, CL 4, 10 4, 10 Mrs B Rogers S&C 0 2 Mr S West (Chairman appointed 1/9/12) BO 3 4 Ms J Bloor (Principal) BO, CL 4, 9 4, 10 Cllr M Stockdale S&C, BO, CL 1,2, 6 1, 4, 10 Mr G A Warrener S&C 2 4 Mrs D Mcbroom S&C 4 4 Mr R S Ibbotson S&C, CL 4, 8 4, 10 Mr L Floyd CL 7 10 Mrs N Heathcote S&C 3 4 Mr S Dale BO 2 4

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 ongoing 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 Shirebrook Academy for the year ended 31 August 2013 and up to the date of approval of the annual report and financial statements.

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GOVERNANCE STATEMENT (CONTINUED)


Capacity to Handle Risk The Governing Body 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 Governing Body is of the view that there is a formal ongoing process for identifying, evaluating and managing the Academy Trust's significant risks that has been in place for the year ending 31 August 2013 and up to the date of approval of the annual report and financial statements. Governors receive training which includes information on the main areas of risk to the Academy. Senior members of staff have their own personal development plans, which include training on their leadership skills, incorporating elements of risk management.

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 Governing Body; - regular reviews by the Business and Operations 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.

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GOVERNANCE STATEMENT (CONTINUED)


The Governing Body has considered the need for a specific internal audit function and has decided not to appoint an internal auditor. However, the Governors have appointed ApC Chartered Accountants and Business Advisers to carry out procedures to check the soundness of internal controls within the Academy and to report to A P Brickles, Governor as “Responsible Officer” (“RO”). The RO’s role includes giving advice on financial matters and performing a range of checks on the Academy’s financial systems. On a termly basis, the RO reports to the Governing Body on the operation of the systems of control and on the discharge of the Governing Body’s financial responsibilities. The work of the RO was carried out in accordance with the Education Funding Agency’s requirements during the year, and no material control issues were identified arising as a result of the RO’s work.

Review of Effectiveness As Accounting Officer, the Principal 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 Responsible Officer; - the work of the external auditor; - the financial management and governance self assessment process; - the work of the executive managers within the Academy 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 Business and Operations Committee and no plan to address weaknesses and ensure continuous improvement of the system was considered necessary. Approved by order of the members of the Governing Body and signed on its behalf by: Mr A P Brickles Ms J S Bloor Governor Accounting Officer 11.12.13

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STATEMENT ON REGULARITY, PROPRIETY AND COMPLIANCE


As accounting officer of Shirebrook Academy I have considered my responsibility to notify the Academy Trusts Board of Governors and the Education Funding Agency of material irregularity, impropriety and non-compliance with terms and conditions of funding, under the funding agreement in place between the Academy Trust and the Secretary of State. As part of my consideration I have had due regard to the requirements of the Academies Financial Handbook. I confirm that I and the Academy Trusts Board of Governors 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. I confirm that no instances of material irregularity, impropriety or funding non-compliance have been discovered to date. Ms J S Bloor Accounting Officer

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STATEMENT OF GOVERNORS' RESPONSIBILITIES


The Governors (who act as Trustees for the charitable activities of Shirebrook Academy and are also directors of the Charitable Company for the purposes of company law) are responsible for preparing the Governors’ Report and the financial statements in accordance with Annual Accounts Requirements issued by the Education Funding Agency, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations. Company law requires the Governors to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the Charitable Company and of the incoming resources and application of resources, including the income and expenditure of the Charitable Company for the year. In preparing these financial statements, the Governors are required to:

select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charities SORP; make judgements and estimates that are reasonable and prudent; state whether applicable UK Accounting Standards have been followed, subject to any material

departures disclosed and explained in the financial statements; prepare the financial statements on the going concern basis unless it is inappropriate to presume that

the academy will continue in operation.

The Governors are responsible for keeping adequate accounting records that are sufficient to show and explain the Charitable Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Charitable Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charitable Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Governors are responsible for ensuring that in its conduct and operation the Charitable Company applies financial and other controls which conform to the requirements both of propriety and good financial management. They are also responsible for ensuring that grants received from the Education Funding Agency /Department for Education have been applied for the purposes intended. In so far as the Governors are aware:

there is no relevant audit information of which the Academy’s auditor is unaware; and the Governors 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. The Governors are responsible for the maintenance and integrity of the corporate and financial information included on the Charitable Company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Approved by order of the members of the Governing Body and signed on its behalf by: Mr A P Brickles Governor Dated 11.12.13

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INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF

SHIREBROOK ACADEMY

We have audited the financial statements of Shirebrook Academy for the year ended 31 August 2013 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and the Annual Accounts Direction 2013 issued by the Education Funding Agency.

This report is made solely to the Academy’s members, as a body, in accordance with chapter 3 of section 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Academy’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

RESPECTIVE RESPONSIBILITIES OF GOVERNORS AND AUDITORS

As explained more fully in the Statement of the Governors’ responsibilities set out on page 20, the Governors (who are also the directors of Shirebrook Academy for the purposes of company law) are responsible for the preparation of the financial statements and 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 applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.

BASIS OF AUDIT OPINION

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the academy’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Governors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Governors’ Report to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. Opinion on financial statements In our opinion the financial statements:

- give a true and fair view of the state of the Academy’s affairs as at 31 August 2013 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 and the Annual Accounts Direction 2013 issued by Education Funding Agency

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INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE MEMBERS OF

SHIREBROOK ACADEMY

Opinion on other matters prescribed by the Companies Act 2006 In our opinion the information given in the Governors Annual Report for the financial year 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 to report to you if, in our opinion:

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

- the financial statements are not in agreement with the accounting records and returns; or

- certain disclosures of Governors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit; or

- the Governors were not entitled to prepare the financial statements in accordance with the small companies regime

Andrew Cripps BA FCA (Senior Statutory Auditor) For and on behalf of ApC Chartered Accountants and Statutory Auditors 7 St John Street Mansfield Nottinghamshire NG18 1QH

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INDEPENDENT REPORTING ACCOUNTANT’S ASSURANCE REPORT ON REGULARITY TO SHIREBROOK ACADEMY TRUST LIMITED AND THE EDUCATION FUNDING AGENCY

In accordance with the terms of our engagement letter dated 18 September 2013 and further to the requirements of the Education Funding Agency (EFA) as included in the Academies: Accounts Direction 2013, we have carried out an engagement to obtain limited assurance about whether the expenditure disbursed and income received by Shirebrook Academy Trust during the period 1 September 2012 to 31 August 2013 have been applied to the purposes identified by Parliament and the financial transactions conform to the authorities which govern them. This report is made solely to Shirebrook Academy Trust and the EFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to the Shirebrook Academy Trust and the EFA those matters we are required to state in a report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Shirebrook Academy Trust and the EFA, for our work, for this report, or for the conclusion we have formed.

Respective responsibilities of Shirebrook Academy Trust’s accounting officer and the reporting accountant

The accounting officer is responsible, under the requirements of Shirebrook Academy Trust’s funding agreement with the Secretary of State for Education dated 22 July 2008 and the Academies Financial Handbook extant from 1 September 2012, for ensuring that expenditure disbursed and income received is applied for the purposes intended by Parliament and the financial transactions conform to the authorities which govern them. Our responsibilities for this engagement are established in the United Kingdom by our profession’s ethical guidance and are to obtain limited assurance and report in accordance with our engagement letter and the requirements of the Academies: Accounts Direction 2013. We report to you whether anything has come to our attention in carrying out our work which suggests that in all material respects, expenditure disbursed and income received during the period 1 September 2012 to 31 August 2013 have not been applied to purposes intended 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 2013 issued by the 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 and explanations in order to provide us with sufficient appropriate evidence to express a negative conclusion on regularity. A limited assurance engagement is more limited in scope than a reasonable assurance engagement and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in a reasonable assurance engagement. Accordingly, we do not express a positive opinion. Our engagement includes examination, on a test basis, of evidence relevant to the regularity and propriety of the Academy Trust’s income and expenditure.

- 23 –

INDEPENDENT REPORTING ACCOUNTANT’S ASSURANCE REPORT ON REGULARITY TO SHIREBROOK ACADEMY TRUST LIMITED AND THE EDUCATION FUNDING AGENCY

Approach (continued)

Our work was based primarily upon enquiry and a risk assessment in order to determine the level of control and substantive testing required (substantive testing is a series of tests on individual transactions following them through the financial system). Many areas of our assurance work have been covered during dual testing with the statutory audit work. Where we consider it necessary we also performed additional examination of evidence relevant to certain areas not covered by the dual testing.

Conclusion

In the course of our work, nothing has come to our attention which suggests that in all material respects the expenditure disbursed and income received during the period 1 September 2012 to 31 August 2013 has not been applied to purposes intended by Parliament and the financial transactions do not conform to the authorities which govern them.

For and on behalf of ApC Chartered Accountants and Statutory Auditors 7 St John Street Mansfield Nottinghamshire NG18 1QH

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STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT)


Unrestricted Restricted Restricted Endowment General Fixed Total Total Funds Funds Asset Funds Funds 2013 2012 Note £000 £000 £000 £000 £000 £000 Incoming resources Incoming resources from generated funds: - Voluntary income 3 169 101 25,883 - 26,153 171 - Activities for generating funds 4 18 8 - - 26 23 - Investment income 5 38 64 - - 102 115 Incoming resources from charitable activities: - Funding for the Academy’s educational operations 6 - 4,914 16 - 4,930 5,132 - Project management grants - - - - - - Other incoming resources 6 19 214 28 - 261 83 ___ _____ __ _____ _____ _____ Total incoming resources 244 5,301 25,927 - 31,472 5,524 ___ _____ __ _____ _____ _____ Resources expended Cost of generating funds: - Costs of generating voluntary income - - - - - - - Fundraising trading - - - - - - - Investment management costs - - - 38 38 - Charitable activities: - Academy’s educational operations 7,8 185 4,848 547 - 5,580 4,983 - Development costs - - - - - - Governance costs 7,9 7 30 - - 37 21 ___ _____ ___ ___ _____ ____ Total resources expended 192 4,878 547 38 5,655 5,004 ___ _____ ___ ___ _____ ____ Net incoming (outgoing) resources before transfers 52 423 25,380 (38) 25,817 520 ___ ___ ___ ____ ____ ____ Transfers 16 - (309) 309 - - - ___ ___ ___ ___ ____ ____ Carried forward 52 114 25,689 (38) 25,817 520 ___ ___ ___ ___ ____ ____

- 25 -


STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT) CONTINUED


Unrestricted Restricted Restricted Endowment General Fixed Total Total Funds Funds Asset Funds Funds 2013 2012 Note £000 £000 £000 £000 £000 £000 Net incoming (outgoing) resources before other recognised gains and losses brought forward 52 114 25,689 (38) 25,817 520 Other recognised gains and losses Gains (losses) on investment assets 13 - - - 298 298 106 Actuarial (losses) gains on defined benefit pension schemes - (138) - - (138) (165) ___ ____ ___ ___ _____ _____ Net movement in funds 52 (24) 25,689 260 25,977 461 ___ ___ ___ ___ ____ _____ Reconciliation of funds Total funds brought forward at 1 September 2012 56 238 460 2,044 2,798 2,337 ___ ___ ____ ____ ____ ____ Total funds carried forward at 31 August 2013 108 214 26,149 2,304 28,775 2,798 ___ ___ ____ ____ ____ ____ All of the Academy’s activities derive from continuing operations during the above two financial periods. A statement of total recognised gains and losses is not required as all gains and losses are included in the Statement of Financial Activities.

- 26 -


BALANCE SHEET

31 AUGUST 2013

Note 31 August 2013 31 August 2012 £000 £000 £000 £000 FIXED ASSETS Tangible assets 12 26,148 460 Investments 13 2,435 2,134 ____ ____ 28,583 2,594 CURRENT ASSETS Debtors 14 203 83 Cash at bank 1,525 1,586 ____ _____ 1,728 1,669 CREDITORS: Amounts falling Due within one year 15 (479) (589) ____ ___ NET CURRENT (LIABILITIES)/ASSETS 1,249 1,080 ____ ____ TOTAL ASSETS LESS CURRENT LIABILITIES 29,832 3,674 ____ ____ NET ASSETS EXCLUDING PENSION 29,832 3,674 LIABILITIES Pension scheme liability 26 (1,057) (876) ____ ____ NET ASSETS 28,775 2,798 ____ ____ FUNDS Endowment funds 16 2,304 2,044 Restricted funds: Fixed asset fund 16 26,149 460 General fund 16 1,271 1,114 Pension reserve 16 (1,057) (876) _____ ____ Total restricted funds 28,667 2,742 Unrestricted funds General funds 16 108 56 ____ ____ TOTAL FUNDS 28,775 2,798 ____ ____

- 27 -


BALANCE SHEET (Continued)

31 AUGUST 2013

These financial statements were approved and authorised for issue by the Governors and are signed on their behalf by:

Mr S West Governor 11.12.13

Company Registration Number: 06628631

- 28 -

SHIREBROOK ACADEMY


CASH FLOW STATEMENT

31 AUGUST 2013

Note 2013 2012 £000 £000 NET CASH INFLOW FROM OPERATING ACTIVITIES 20 75 420 RETURNS ON INVESTMENTS AND SERVICING OF FINANCE 21 43 27 CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT 22 (179) (192) _____ _____ CASH INFLOW BEFORE FINANCING (61) 255 FINANCING 23 - - _____ _____ (DECREASE) / INCREASE IN CASH 24 (61) 255 _____ _____ RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS NET FUNDS AT 1 SEPTEMBER 2012 1,586 1,331 _____ _____ NET FUNDS AT 31 AUGUST 2013 1,525 1,586 _____ _____

- 29-


ACCOUNTING POLICIES


1. ACCOUNTING POLICIES

Basis of accounting

The financial statements have been prepared under the historical cost convention, except for investments which are included at market value, and in accordance with applicable United Kingdom Accounting Standards, the Charity Commission “Statement of Recommended Practice Accounting and Reporting by Charities" (SORP 2005), the Academies Accounts Direction issued by Education Funding Agency and the Companies Act 2006. A summary of the principal accounting policies, which have been applied consistently, except where noted, is set out below. Going Concern The Governors assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The Governors make this assessment in respect of a period of one year from the date of approval of the financial statements.

Investments Investments are stated at market value at the balance sheet date. The Statement of Financial Activities includes the net gains and losses arising on revaluations and disposals throughout the period

Interest received

Interest income is included when received.

Fund accounting

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

Restricted fixed asset funds are resources which are to be applied to specific capital purposes imposed by the Education Funding Agency, Department for Education, sponsor or other funders where the asset acquired or credited is held for a specific purpose. Restricted general funds comprise all other restricted funds received and include grants from the Education Funding Agency and Department for Education or other funders.

Investment income and gains are allocated to the appropriate fund.

The donation to the Charity from the main sponsor is treated as a permanent endowment fund as this must be retained by the Charity as capital and as such is included within investments on the balance sheet, at such time as the investments are disposed of, the gain or loss on disposal of the investment can be transferred by the Trustees from the endowment fund to the academies restricted fund.

- 30 -


ACCOUNTING POLICIES


1. ACCOUNTING POLICIES Continued Tangible fixed assets

Tangible fixed assets acquired since the Academy was established are included in the accounts at cost. Where tangible fixed assets have been acquired with the aid of specific grants, either from the government or from the private sector, they are included in the Balance Sheet at cost and depreciated over their expected useful economic life. The related grants are credited to a restricted fixed asset fund in the Statement of Financial Activities and carried forward in the Balance Sheet. Depreciation on such assets is charged to the restricted fixed asset fund in the Statement of Financial Activities so as to reduce the fund over the useful economic life of the related asset on a basis consistent with the Academy’s depreciation policy. Assets costing less than £500 are written off in the period of acquisition. All other assets are capitalised. The Academy holds land and buildings on lease from Derbyshire County Council, with a rental of one peppercorn a year to be paid. The current lease is for 3 years from 1 September 2011, and the accounts show a notional rental for the buildings based on building valuations complied by the Valuation Office Agency. A new property was completed during 2013 on which a 125 year lease has been signed. Therefore the notional rent has been apportioned up to the point at which the academy transferred into the new property which has been included as a donation in the SOFA and asset on the Balance Sheet depreciated as stated below

Depreciation

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost of each asset on a straight line basis over its expected useful lives, as follows:

Leasehold land and buildings - 50 years Fixtures and fittings - 3 and 5 years Computer equipment - 3 and 5 years

Assets under construction are included at cost, depreciation on these assets is not provided until they are brought into use, at this point they are transferred to the relevant class of asset

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of a fixed asset and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of Financial Activities.

Pensions Benefits 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 schemes, are contracted out of the State Earnings-Related Pension Scheme (‘SERPS’), and 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 of pensions over employees’ working lives with the Academy in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quinquennial valuations using a prospective benefit method.

- 31 -


ACCOUNTING POLICIES


1. ACCOUNTING POLICIES Continued

Pensions Benefits (Continued) As stated in Note 26, the TPS is a multi-employer scheme and the Academy is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. The TPS is therefore treated as a defined contribution scheme and the contributions recognised as they are paid each year.

The LGPS is a funded scheme and the assets are held separately from those of the Academy in separate Trustee administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent term and currency to the liabilities. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The amounts charged to operating surplus are the current service costs and gains and losses on settlements and curtailments. They are included as part of staff costs. Past service costs are recognised immediately in the Statement of Financial Activities if the benefits have vested. If the benefits have not vested immediately, the costs are recognised over the period until vesting occurs. The expected return on assets and the interest cost are shown as a net finance amount of other finance costs or credits adjacent to interest. Actuarial gains and losses are recognised immediately in other gains and losses.

Incoming resources

All incoming resources are recognised when the Academy has entitlement to the funds, certainty of receipt and the amount can be measured with sufficient reliability.

Grants receivable Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the balance sheet. Where income is received in advance of entitlement of receipt its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued. General Annual Grant is recognised in full in the year for which it is receivable and any unspent amount is reflected as a balance in the restricted general fund. Capital grants are recognised when receivable 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 Sponsorship income provided to the Academy which amounts to a donation is recognised in the Statement of Financial Activities in the period in which it is receivable, where there is certainty of receipt.

Donations Donations are recognised on a receivable basis where there is certainty of receipt and the amount can be reliably measured.

- 32 -


ACCOUNTING POLICIES


1. ACCOUNTING POLICIES Continued Incoming resources (continued)

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

Donated Services and Gifts in Kind

The value of donated services and gifts in kind provided to the Academy are recognised at an estimate of their gross value in the period in which they are receivable as incoming resources, where the benefit to the Academy can be reliably measured. An equivalent amount is included as expenditure under the relevant heading in the Statement of Financial Activities, except where the gift in kind was a fixed asset in which case the amount is included in the appropriate fixed asset category and depreciated over the useful economic life in accordance with Academy‘s policies.

Resources expended

All expenditure is accounted for on an accruals basis as a liability is incurred. Expenditure includes VAT which cannot be recovered and has been classified under headings that aggregate all costs related to the category.

- Costs of generating funds comprise the costs associated with attracting voluntary income.

- Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

- Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity.

- All costs are allocated between the expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, others are apportioned on an appropriate basis e.g. floor areas, per capita or estimated usage as set out in Note 8.

Irrecoverable VAT is charged as a cost in the Statement of Financial Activities.

Operating leases

Operating lease payments are charges to the Statement of Financial Activities as they arise, and are allocated to the correct financial period on a straight line basis.

- 33 -

SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2013

1. ACCOUNTING POLICIES Continued

Taxation The Academy is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Academy is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

2. GENERAL ANNUAL GRANT (GAG)

Under the funding agreement with the Secretary of State the academy trust was subject to limits at 31 August 2013 on the amount of GAG that could be carried forward from one year to the next. An amount equal to 12% of GAG could be carried forward, of which up to 2% could be used for general recurrent purposes, with any balance being available for premise / capital purposes The academy has not exceeded these limits during the year ended 31 August 2013 (2012: not exceeded)

3. VOLUNTARY INCOME Unrestricted Restricted Endowment 2013 2012 Funds Funds Fund Total Total £000 £000 £000 £000 £000 Gifts in Kind - - - - 3 Academy land and buildings from LEA - 25,360 - 25,360 - Academy fixtures and fittings from LEA 169 523 - 692 - Academy premises (notional rent payment) - 98 - 98 168 Other donations - 3 - 3 - ___ ___ ____ ____ ____ 169 25,984 - 26,153 171 ___ ___ ____ ____ ____

The Academy inherited the premises and contents of the predecessor school on 1 September 2010. The land and buildings are held on a 3 year lease from Derbyshire County Council, with a rental of one peppercorn a year to be paid. The accounts show a notional rental charge of £98,000 (2012: £167,585) for the buildings based on building valuations compiled by the Valuation Office Agency. The notional rent was apportioned for the period 1 September 2012 to 31 March 2013 when the Academy transferred into its new premise. In April 2013 the Academy moved into its new premise under a 125 year operating lease with Derbyshire County Council, with an annual rental of one peppercorn. The estimated useful life of the property is 50 years and therefore the academy is required to treat the property as a donation through the SOFA and an asset of the balance sheet. The property donation has been valued at cost at £25,450,000 less the academy’s contribution on £89,941, whilst the fixtures, fittings and furniture have a value of £692,000 of which £523,000 have been capitalised and the remainder included as a cost in the SOFA.

- 34 -


NOTES TO THE FINANCIAL STATEMENTS


4. ACTIVITIES FOR GENERATING FUNDS Unrestricted Restricted 2013 2012 Funds Fund Total Total £000 £000 £000 £000 Hire of Facilities - 8 8 7 Catering Income 12 - 12 11 Uniform sales 6 - 6 5 ___ ___ ___ ___ 18 8 26 23 ___ ___ ___ ___ 5. INVESTMENT INCOME Unrestricted Restricted 2013 2012 Funds Fund Total Total £000 £000 £000 £000 Bank interest received 38 64 102 115 __ __ __ __

- 35 -




6. FUNDING FOR ACADEMY’S EDUCATIONAL OPERATIONS Total Total Unrestricted Restricted Funds Funds Funds Fund 2013 2012 £000 £000 £000 £000 DfE / EFA capital grant Devolved Formula Capital allocations - 16 16 16 ___ ___ ___ ___ - 16 16 16 ___ ___ ___ ___ DfE / EFA revenue grants General Annual Grant (GAG) (note 2) - 4,128 4,128 4,285 Start-up Grants - 204 204 488 School Standards Fund - 18 18 - Other DfE / EFA grants - 268 268 128 ___ ____ ____ ___ - 4,618 4,618 4,901 ___ ____ ____ ___ Other Government Grants Extended Schools programme - - - 13 SEN from LA - 256 256 190 Special Education Projects - 40 40 12 ___ ___ ___ ___ - 296 296 215 ___ ___ ___ ___ ___ _____ _____ ____ - 4,930 4,930 5,132 ___ _____ _____ ____ Other incoming resources Academy trips - 19 19 25 Property recharges - 105 105 - Post 16 funding - 68 68 - Sundry income 19 50 69 58 ___ ___ ___ ___ 19 242 261 83 ___ ___ ___ ___

- 36 -




7. RESOURCES EXPENDED

Staff Premises Other Total Total Costs Costs Costs 2013 2012 £000 £000 £000 £000 £000 Cost of generating voluntary income Investment management costs - - 38 38 - ____ ___ ___ ____ ____ Academy’s educational operations Direct costs 2,936 354 753 4,043 3,815 Allocated support costs 540 616 381 1,537 1,168 ____ ___ ___ ____ ____ 3,476 970 1,134 5,580 4,983 Governance costs including allocated support costs - - 37 37 21 ____ ___ ____ ____ ____ 3,476 970 1,209 5,655 5,004 ____ ___ ____ ____ _____ Net (incoming) / outgoing resources for the year include 2013 2012 £000 £000 Operating leases 18 4 Fees payable to auditor – Audit 19 9 Fees payable to auditor – Other 2 5 Profit / (loss) on disposal of fixed assets 12 - Depreciation of owned assets 419 66 ___ ___ 470 84 ___ ___

- 37 -




8. CHARITABLE ACTIVITIES – ACADEMY’S EDUCATIONAL OPERATIONS Unrestricted Restricted Total Funds Total Funds Funds Funds 2013 2012 £000 £000 £000 £000 Direct costs Teaching and education support staff costs - 2,936 2,936 3,011 Depreciation - 354 354 57 Educational supplies - 338 338 426 Examination fees - 69 69 77 Staff development - 72 72 42 Other direct costs - 274 274 202 ___ _____ _____ ___ - 4,043 4,043 3,815 ___ _____ _____ ___ Allocated support costs Support staff costs - 540 540 486 Depreciation - 65 65 9 Recruitment and support - 66 66 78 Redundancy payments - 95 95 5 Maintenance of premises and equipment 169 171 340 139 Cleaning - 26 26 16 Rent and rates - 115 115 182 Insurance - 43 43 42 Security and transport - 27 27 16 Catering 12 122 134 120 Bank interest and charges - 32 32 33 Other support costs 4 50 54 42 ___ _____ _____ ____ 185 1,352 1,537 1,168 ___ _____ _____ ____ ___ _____ _____ ____ Academy’s educational operations 185 5,395 5,580 4,983 ___ _____ _____ ____

- 38 -


9. GOVERNANCE COSTS Unrestricted Restricted Total Funds Total Funds Funds Funds 2013 2012 £000 £000 £000 £000 Legal and professional fees - 16 16 7 Auditors remuneration

- Audit of financial statements 7 11 18 9 - Responsible officer audit - 1 1 2 - Accounts preparation - 2 2 3 ___ ___ ___ ___ 7 30 37 21 ___ ___ ___ ___ 10. STAFF COSTS AND EMOLUMENTS Total staff costs were as follows: 2013 2012 £000 £000 Wages and salaries 2,873 2,881 Social security costs 217 222 Other pension costs 386 393 _____ ____ 3,476 3,496 Redundancy payments 95 5 Supply staff costs - 0 _____ ____ 3,571 3,501 _____ ____ Particulars of employees: The average number of employees during the year (including senior management team), calculated on the basis of full-time equivalents was as follows: 2013 2012 Charitable activities No No Teachers 43 47 Administration and support 39 35 Management 9 7 ___ ___ 91 89 ___ ___

- 39 -




10. STAFF COSTS AND EMOLUMENTS CONTINUED

The number of employees, whose emoluments for the year fell within the following bands, was: 2013 2012 No No £60,000 to £69,999 4 5 £70,000 to £79,999 1 1 £100,000 to £109,999 - - £110,000 to £119,999 1 1 ___ ___ 6 7 ___ ___

Five (2012: six) of the above participated in the Teachers’ Pension Scheme. During the year ended 31 August 2013, pension contributions for these staff amounted to £47,652 (2012: £57,228) and one participated in the Local Government Pension Scheme and the pension contribution was £6,758 (2012:£6,747)

11. GOVERNORS’ REMUNERATION AND EXPENSES

The Principal and Staff Governors only receive remuneration in respect of services they provide undertaking the roles of Principal and staff and not in respect of their services as Governors. Other Governors did not receive any payments, from the Academy in respect of their role as Governors. The value of staff Governor's remuneration (which includes employer’s pension contribution) J Bloor (Principal) £115,000 - £120,000 (2012: £110,000 - £115,000) N Heathcote £45,000 - £50,000 (2012: £45,000 - £50,000) D McBroom £10,000 - £15,000 (2012: £10,000 - £15,000) B Rogers £15,000 - £20,000 (2012: £15,000 - £20,000) During the year ended 31 August 2013, no travel and subsistence expenses were reimbursed to Governors (2012: none). Related party transactions involving the Trustees are set out in note 27.

In accordance with normal commercial practice the Academy has purchased insurance to protect Governors and officers from claims arising from negligent acts, errors or omissions occurring whilst on Academy business. The insurance provides cover up to £2,000,000 on any one claim and the cost for the year ended 31 August 2013 was £1,442 (2012 - £1,414). The cost of this insurance is included in the total insurance cost.

- 40 –




12. TANGIBLE FIXED ASSETS Assets Fixtures & Computer Motor Leasehold Under fittings equipment Vehicles land and Total Construction buildings £000 £000 £000 £000 £000 £000 Cost At 1 September 2012 243 60 211 40 - 554 Additions - 712 25 22 25,360 26,119 Disposal - (33) (23) - - (56) Transfer (243) 153 - - 90 - ___ ___ ___ ___ ___ ___ At 31 August 2013 - 892 213 62 25,450 26,617 ___ ___ ___ ___ ___ ___ Depreciation At 1 September 2012 - 28 59 7 - 94 Charge for the year - 94 46 13 266 419 On disposal - (30) (14) - - (44) ___ ___ ___ ___ ___ ___ At 31 August 2013 - 92 91 20 266 469 ___ ___ ___ ___ ___ ___ Net book value At 31 August 2013 - 800 122 42 25,184 26,148 ___ ___ ___ ___ ___ ___ At 1 September 2012 243 32 152 33 - 460 ___ ___ ___ ___ ___ ___ 13. INVESTMENTS Movement in market value Cash on 2013 2012 Unit Trust Deposit Total Total £000 £000 £000 £000 Market value at 1September 2012 1,830 304 2,134 1,941 Acquisitions at cost 58 6 64 97 Revaluation Gain in year 298 - 298 106 Withdrawals (38) (23) (61) (10) ____ ____ ____ ____ Market value at 31 August 2013 2,148 287 2,435 2,134 ____ ____ ____ ____

Of the total amount invested £2,304,000(2012: £2,044,000) relates to the Endowment Fund, which is held on trust to be retained for the benefit of the Academy as a capital fund and £131,000 (2012: £90,000) relates to the restricted general fund.

The Academy has no subsidiary companies. - 41 -


14. DEBTORS 2013 2012 £000 £000 Trade debtors 2 2 Prepayments and accrued income 82 57 Sundry debtors 34 2 VAT recoverable 29 17 Amounts owed by related parties 56 5 ____ ____ 203 83 ___ ___ 15. CREDITORS: Amounts falling due within one year 2013 2012 £000 £000 Trade creditors 74 60 Taxation and social security 63 67 Other creditors 85 51 Accruals and deferred income 117 246 Amounts owed to related parties 140 165 ____ ____ 479 589 ____ ____ Deferred income 2013 2012 £000 £000 Deferred income at 1 September 2012 - 6 Resources deferred in the year - - Amounts released from previous years - (6) ___ ___ Deferred income at 31 August 2013 - - ___ ___

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16. FUNDS Balance at 1 Incoming Resources Gains, losses Balance at 31 September resources expended & transfers August 2013 2012 £000 £000 £000 £000 Restricted general funds General annual grant 425 4,452 (4,072) (344) 461 Start-up grant 540 204 (144) (201) 399 Other DfE / EFA grants - - - - - LEA and other grants - 288 (288) - - Other restricted 149 357 (331) 236 411 ___ _____ _____ ____ ___ 1,114 5,301 (4,835) (309) 1,271 ___ _____ _____ ____ ____ Pension reserve (876) - (43) (138) (1,057) __ _____ ___ ____ ____ Restricted fixed asset funds DfE / EFA Capital grants 64 16 - - 80 Capital expenditure from GAG 387 28 (227) 317 505 Donated assets 9 25,883 (320) (8) 25,564 ___ ____ ___ ___ ___

460 25,927 (547) 309 26,149 ___ ___ ___ ___ ___

Endowment funds 2,044 - (38) 298 2,304 ____ ____ ____ ___ ____ Total restricted funds 2,742 31,228 (5,463) 160 28,667 ____ ____ ____ ___ ____ Unrestricted funds General fund 56 244 (192) - 108 ___ ____ ____ ____ ____ Total unrestricted funds 56 244 (192) - 108 ___ ____ ____ ____ ____ ____ ____ ____ ____ ____ Total funds 2,798 31,472 (5,655) 160 28,775 ____ ____ ____ ____ ____

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16. FUNDS CONTINUED

Restricted fixed asset funds were mainly funded by the Government capital grant and a gross transfer from restricted funds to restricted fixed asset funds of £317,000 (2012: £188,000) was made during the year. Also during the year assets valued at £25,883,000 (2012: £Nil) were included as a voluntary donation during the year in respect of assets acquired under long term lease from Derbyshire County Council (DCC). The General Annual Grant must be used for the normal running costs of the Academy. The Academy is allowed to carry forward up to 12% of the current GAG. Of the carried forward amount up to 2% of GAG can be used for general purposes at the discretion of the Academy, but any balance over 2% must be used for capital purposes. The Start Up Grant ‘A’ is funding provided to meet the expenditure of providing basic stocks of teaching and learning materials. The Start-Up Grant ‘B’ is to be used to support senior management and staffing costs during the initial start-up period until the pupil numbers increase. The second part of the Start Up Grant ‘B’ is intended to provide funds to support the additional costs incurred during the period of the construction of the new building. At the end of the start up period, any remaining start up grant will be transferred to GAG and subject to the limits imposed above. The main income within ‘other restricted funds’ is the Pupil Premium, this addresses the current underlying inequalities between children eligible for free school meals (FSM) and their wealthier peers by ensuring that funding to tackle disadvantage reaches the pupils who need it most. This also includes the notional rent relating to the existing school premises which is treated as a voluntary donation. The Academy has set up a designated capital fund as required by the contract with DCC in order to allow for repairs and maintenance and future refurbishments to the property, this represents £200,000 of the ‘Other restricted reserve’ (2012: Nil). The Endowment fund is a restricted fund, which is held on trust to be retained for the benefit of the Academy Trust as a capital fund. The income is also classified as restricted as it can only be expended for the specific purpose of the Academy’s objectives.

17. ANALYSIS OF NET ASSETS BETWEEN FUNDS Unrestricted Restricted Restricted general general fixed asset Endowment Total fund fund fund fund 2013 £000 £000 £000 £000 £000 Tangible fixed assets - - 26,148 - 26,148 Investments 131 - 2,304 2,435 Current assets 108 1,619 1 - 1,728 Current liabilities - (479) - - (479) Pension scheme liability - (1,057) - - (1,057) ___ ____ ___ ____ ____ Total net assets 108 214 26,149 2,304 28,775 ___ ____ ___ ____ ____

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18. CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES

The Academy has no specific capital commitments at the balance sheet date (2012: None) The Academy has a commitment under the lease agreement with Derbyshire County Council to provide a fund to help towards refurbishment and repairs to the leasehold property, the Trustees have set up a designated fund for this purpose and has currently set aside £200,000 (2012: £nil) which is included within other restricted reserves.

19. FINANCIAL COMMITMENTS

Operating leases At 31 August 2013 the Academy had annual lease commitments under non-cancellable operating leases as follows

2013 2012 £000 £000 Office equipment Expiring within one year - 3 Expiring within two and five years inclusive 24 - Expiring in over five years - - __ __ 24 3 __ __ 20. RECONCILIATION OF OPERATING (DEFICIT) / SURPLUS TO NET CASH INFLOW FROM OPERATING ACTIVITIES 2013 2012 £000 £000 Surplus on continuing activities 25,817 520 Depreciation (note 12) 419 66 Interest received (102) (115) Capital grants from DfE and other capital income (44) (16) (Increase) / decrease in debtors (120) 48 Increase / (decrease) in creditors (110) (113) Loss on disposal of tangible fixed assets 12 - FRS 17 pension cost less contributions payable (note 26) 12 (2) FRS 17 pension finance income (note 26) 31 32 Amounts expended from income from investments 5 - Investment management costs 38 Donation of property, fittings and fixtures (25,883) - _____ _____ Net cash inflow/(outflow) from operating activities 75 420 _____ _____

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21. RETURNS ON INVESTMENTS AND SERVICING OF FINANCE 2013 2012 Interest received in endowment 5 14 Interest received 38 13 __ __ Net cash inflow from returns on investments and servicing of finance 43 27 __ __ 22. CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT 2013 2012 £000 £000 Purchase of tangible fixed assets (236) (204) Capital grants from DfE / EFA 16 16 Capital funding received from sponsor and others 28 - Withdrawal from Endowment Fund 13 10 Investment in Endowment fund - (14) _____ _____ Net cash outflow from capital expenditure and financial investment (179) (192) _____ _____ 23. FINANCING 2013 2012 £000 £000 Endowment fund donation from endowment sponsor - - ____ ____ Net cash inflow from financing - - ____ ____ 24. ANALYSIS OF CHANGES IN NET FUNDS At 1 At 31 September August 2012 Cash flows 2013 £000 £000 £000 Cash in hand and at bank 1,586 (61) 1,525 ____ ____ ____ 1,586 (61) 1,525 ____ ____ ____ 25. COMPANY LIMITED BY GUARANTEE

The Charity is a company limited by guarantee. Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up while he/she is a member, or within one year after he/she ceases to be a member, such amount as may be required, not exceeding £10 for the debts and liabilities contracted before he/she ceases to be a member

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26. PENSION COMMITMENTS The Academy’s employees belong to two principal pension schemes: the Teachers’ Pension Scheme

England and Wales (TPS) for academic and related staff; and the Local Government Pension Scheme (LGPS) for non-teaching staff, which is managed by Derbyshire County Council. Both are defined-benefit schemes.

The pension costs are assessed in accordance with the advice of independent qualified actuaries. The latest actuarial valuation of the TPS was 31 March 2004 and of the LGPS 31 March 2010.

Pension commitments of £49,131 (2012: £49,218) are included in creditors. Teachers’ Pension Scheme

Introduction The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers' Pensions Regulations (2010). These regulations apply to teachers in schools that are maintained by local authorities and other educational establishments, including academies, in England and Wales. In addition teachers in many independent and voluntary-aided schools and teachers and lecturers in some establishments of further and higher education may be eligible for membership. Membership is automatic for full-time teachers and lecturers and from 1 January 2007 automatic too for teachers and lecturers in part-time employment following appointment or a change of contract. Teachers and lecturers are able to opt out of the TPS. The Teachers’ Pension Budgeting and Valuation Account Although members may be employed by various bodies, their retirement and other pension benefits are set out in regulations made under the Superannuation Act (1972) and are paid by public funds provided by Parliament. The TPS is an unfunded scheme and members contribute on a “pay as you go” basis – these contributions along with those made by employers are credited to the Exchequer under arrangements governed by the above Act. The Teachers' Pensions Regulations require an annual account, the Teachers' Pension Budgeting and Valuation Account, to be kept of receipts and expenditure (including the cost of pensions’ increases). From 1 April 2001, the Account has been credited with a real rate of return, which is equivalent to assuming that the balance in the Account is invested in notional investments that produce that real rate of return. Valuation of the Teachers’ Pension Scheme At the last valuation, the contribution rate to be paid into the TPS was assessed in two parts. First, a standard contribution rate (SCR) was determined. This is the contribution, expressed as a percentage of the salaries of teachers and lecturers in service or entering service during the period over which the contribution rate applies, which if it were paid over the entire active service of these teachers and lecturers would broadly defray the cost of benefits payable in respect of that service. Secondly, a supplementary contribution is payable if, as a result of the actuarial review, it is found that accumulated liabilities of the Account for benefits to past and present teachers, are not fully covered by standard contributions to be paid in future and by the notional fund built up from past contributions. The total contribution rate payable is the sum of the SCR and the supplementary contribution rate.

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26. PENSION COMMITMENTS CONTINUED

The last valuation of the TPS related to the period 1 April 2001 to 31 March 2004. The Government Actuary’s report of October 2006 revealed that the total liabilities of the Scheme (pensions in payment and the estimated cost of future benefits) amounted to £166,500 million. The value of the assets (estimated future contributions together with the proceeds from the notional investments held at that valuation date) was £163,240 million. The assumed real rate of return was 3.5% in excess of prices and 2% in excess of earnings. The rate of real earnings growth was assumed to be 1.5%. The assumed gross rate of return was 6.5%. From 1 January 2007, the SCR was assessed at 19.75%, and the supplementary contribution rate was assessed to be 0.75% (to balance assets and liabilities as required by the regulations within 15 years). This resulted in a total contribution rate of 20.5%, which translated into an employee contribution rate of 6.4% and employer contribution rate of 14.1% payable. Actuarial scheme valuations are dependent on assumptions about the value of future costs, the design of benefits and many other factors. Many of these assumptions are being considered as part of the work on the reformed TPS, as set out below. Scheme valuations therefore remain suspended. The Public Service Pensions Bill, which is being debated in the House of Commons, provides for future scheme valuations to be conducted in accordance with Treasury directions. The timing for the next valuation has still to be determined, but it is likely to be before the reformed schemes are introduced in 2015. Teachers’ Pension Scheme Changes Lord Hutton published his final report in March 2011 and made recommendations about how pensions can be made sustainable and affordable, whilst remaining fair to the workforce and the taxpayer. The Government accepted Lord Hutton’s recommendations as the basis for consultation and Ministers engaged in extensive discussions with trade unions and other representative bodies on reform of the TPS. Those discussions concluded on 9 March 2012 and the Department published a Proposed Final Agreement, setting out the design for a reformed TPS to be implemented from 1 April 2015. The key provisions of the reformed scheme include: a pension based on career average earnings; an

accrual rate of 1/57th; and a Normal Pension Age equal to State Pension Age, but with options to enable

members to retire earlier or later than their Normal Pension Age. Importantly, pension benefits built up before 1 April 2015 will be fully protected. In addition, the Proposed Final Agreement includes a Government commitment that those within 10 years of Normal Pension Age on 1 April 2012 will see no change to the age at which they can retire, and no decrease in the amount of pension they receive when they retire. There will also be further transitional protection, tapered over a three and a half year period, for people who would fall just outside of the 10 year protection. In his interim report of October 2010, Lord Hutton recommended that short-term savings were also required, and that the only realistic way of achieving these was to increase member contributions. At the Spending Review 2010 the Government announced an average increase of 3.2 percentage points on the contribution rates by 2014-15. The increases were to be phased in from April 2012 on a 40:80:100% basis. Under the definitions set out in Financial Reporting Standard (FRS 17) Retirement Benefits, the TPS is a multi-employer pension scheme. The academy is unable to identify its share of the underlying assets and liabilities of the scheme. Accordingly, the academy has taken advantage of the exemption in FRS 17 and has accounted for its contributions to the scheme as if it were a defined contribution scheme. The academy has set out above the information available on the scheme.

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SHIREBROOK ACADEMY





Local Government Pension Scheme The Academy is one of several employing bodies included within the Local Government Pension Scheme (LGPS). The LGPS is a funded defined-benefit scheme, with the assets held in separate trustee-administered funds. Contributions to the scheme are determined by a qualified actuary on the basis of triennial valuations using the projected unit method. The total contribution made for the year ended 31 August 2013 was £133,914 (2012: £128,676), of which employer’s contributions totalled £97,432 (2012: £93.080) and employees’ contributions totalled £36,482 (2012: £35,596). The agreed contribution rates for future years are 11.3% for employers and 5.5% to 7.5% for employees.

Principal Actuarial Assumptions 2013 2012

Rate of increase in salaries 5.10% 4.05% Rate of increase for pensions in payment / inflation 2.80% 2.3% Discount rate for scheme liabilities 4.60% 4.5% Inflation assumption (CPI) -% 2.3% Commutation of pensions to lump sums 50% 50%

The current mortality assumptions include sufficient allowance for future improvements in mortality rates. The assumed live expectations on retirement age 65 are: 2013 2012 Retiring today Males 22.1 22.1 Females 24.7 24.7 Retiring in 20 years Males 23.9 23.9 Females 26.7 26.7 The Academy’s share of the assets and liabilities in the scheme and the expected rates of return were:

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Expected Fair value Expected Fair value Return at 31 at 31 Return at 31 at 31 August August August August 2013 2013 2012 2012 £000 £000 Equities 6.6% 833 7.0% 625 Government Bonds 3.7% 217 2.7% 190 Property 4.7% 60 6.0% 49 Cash 3.6% 96 0.5% 82 _____ _____

Total market value of assets 1,206 946 Present value of scheme liabilities - Funded (2,263) (1,822) _____ _____

Deficit in the scheme (1,057) (876) _____ _____ The expected rate of return is the assumed return the assets that the fund will achieve over the entire life of the related obligation based on market expectations at the beginning of the period. This assumption is used to determine the expected return on assets for the pension expense. The actual return on scheme assets was £141,000 (2012: 42,000) Amounts recognised in the statement of financial activities

2013 2012 £000 £000 Current service cost (net of employee contributions) 111 91 Past service cost - - Curtailments and settlements 3 - ___ ___ Total operating charge 114 91 ___ ___ Analysis of pension finance income / (costs) Expected return on pension scheme assets (54) (47) Interest on pension liabilities 85 79 ___ ___ Pension finance costs 31 32 ___ ___

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The actual gains and losses for the current year are recognised in the statement of financial activities. The cumulative amount of actuarial gains and losses recognised in the statement of financial activities since the adoption of FRS 17 is a £233,000 loss (2012: £95,000 loss). Movements in the present value of defined benefit obligations were as follows: 2013 2012 £000 £000 At 1 September 1,822 1,452 Current service cost 111 91 Interest cost 85 79 Employee contributions 36 36 Actuarial (gain)/loss 225 183 Curtailments and settlements 3 - Benefits paid (19) (19)

____ ____ At 31 August 2,263 1,822 ____ ____

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

2013 2012 £000 £000 At 1 September 946 771 Expected return on plan assets 54 47

Actuarial gain 87 18 Employer contributions 102 93 Employee contributions 36 36 Assets distributed on settlements - - Transfer in of new members - - Benefits paid (19) (19) ____ ____ At 31 August 1,206 946 ____ ____

The estimated value of employer contributions for the year ended 31 August 2014 is £123,000.

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Normally, there would be a five-year history of experience adjustments. However, as this is the third year of the Academy, only three years have been reported:

2013 2012 2011 £000 £000 £000 Present value of defined benefit obligations (2,263) (1,822) (1,452) Fair value of share of scheme assets 1,206 946 771 ____ ____ ____ Deficit in the scheme (1,057) (876) (681) ____ ____ ____ Experience adjustments on share of scheme assets 87 18 2 Experience adjustments on scheme liabilities 0 0 0 27. GOVERNORS REMUNERATION AND RELATED PARTY TRANSACTIONS

During the year Governors remuneration of £196,671 (2012: £190,912) of which, pension contributions of £23,508 (2012: £22,849) were paid.

There were no (2012: no) expenses reimbursed to Governors during the period

No (2012: no) Governor or other person related to the Charity had any personal interest in any contract or transaction entered into by the Charity during the year.

Under the terms of the funding agreement for the Academy, the Shirebrook Academy Endowment Fund was established as an unincorporated Charitable Trust (Charity number 1134693) for the benefit of the Academy. Whilst the Statement of Financial Activities and the Balance Sheet aggregate the endowment funds with those of the Academies, no consolidated financial statements have been prepared in accordance with Charities SORP 2005 paragraph 383(d). The subsidiary is not a company and, by virtue of being a special trust or a uniting direction under s96 (5) or (6) of the Charities Act 1993, has had its accounts aggregated with that of the reporting charity. The transactions of the Shirebrook Academy Endowment Fund have been incorporated into the Shirebrook Academy accounts and as at the balance sheet date accounts have been produced for the Endowment Fund.

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MANAGEMENT INFORMATION


27. GOVERNORS REMUNERATION AND RELATED PARTY TRANSACTIONS CONTINUED

The Principal Sponsor of Shirebrook Academy is ALLRoads, a DLO of Derbyshire County Council (DCC). During the year, DCC (as the Local Education Authority) paid the Academy £256,000 (2012: £190,000) in grants for SEN funding and Schools Standards Fund, and £57,938 (2012: £16,000) in other grants and recharges. DCC charged the Academy £410,661 (2012: £400,000) for various traded services (including for the provision of Human Resources and payroll services, catering and free school meals, ICT Managed Services, etc). The Property Services department of DCC invoiced the Academy £5,467 (2012: £6,000) for site maintenance and the Academy paid DCC £133,916 (2012: £141,000) for employee and employer contributions to the Local Government Pensions Scheme. At the balance sheet date £140,000 (2012: £160,000) was owed to DCC by the Academy.

During the year the Academy recognised recharges to Stubbin Wood School (A DCC School) relating to the shared occupation of the site at Common Lane of £105,459 (2012: £nil). The balance outstanding by Stubbin Wood School at the balance sheet date was £43,903 (2012: £nil) These transactions were all made on an arm’s length basis.

28. CONTROLLING PARTY

There was no controlling party as the company is limited by guarantee and has no voting share capital.

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SHIREBROOK ACADEMY


DETAILED STATEMENT OF FINANCIAL ACTIVITIES


The following page does not form part of the statutory financial statements

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SHIREBROOK ACADEMY


DETAILED STATEMENT OF FINANCIAL ACTIVITIES


2013 2012 £000 £000 Income DfE / EFA General Annual Grant (GAG) 4,146 4,285 DfE / EFA Start Up Grant 204 488 DfE / EFA capital grant 16 16 Other DfE / EFA grants 268 128 Other government grants 296 215 Voluntary income 26,153 171 Investment income 102 115 Endowment funds - - Activities for generating funds 26 23 Other income 261 83 _____ _____ TOTAL INCOMING RESOURCES 31,472 5,524 _____ _____ Expenditure Staff costs 3,476 3,501 Non pay expenditure

- Premises 382 395 - Supplies and services - - - Other 1,378 1,042

Depreciation 419 66 _____ _____ TOTAL RESOURCES EXPENDED 5,655 5,004 ____ ____ Net income for the year 25,817 520 ____ ____

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE … · (Resigned 11 December 2012) Ms J S Bloor...

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Transcript of SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE … · (Resigned 11 December 2012) Ms J S Bloor...