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Registered number: 08126868

ASHBY SCHOOL

(A Company Limited by Guarantee)

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2015

ASHBY SCHOOL


CONTENTS

Page

Reference and Administrative Details of the Academy, its Trustees and Advisers 1 - 2

Trustees' Report 3 - 10

Governance Statement 11 - 14

Statement on Regularity, Propriety and Compliance 15

Trustees' Responsibilities Statement 16

Independent Auditors' Report to the Board of Trustees of Ashby School 17 - 18

Independent Reporting Accountant's Assurance Report on Regularity to AshbySchool and the Education Funding Agency

19 - 20

Statement of Financial Activities incorporating Income & Expenditure Account 21 - 22

Balance Sheet 23 - 24

Cash Flow Statement 25

Notes to the Financial Statements, incorporating Statement of Accounting Policies &other notes to the Financial Statements

26 - 47

ASHBY SCHOOL


REFERENCE AND ADMINISTRATIVE DETAILS OF THE ACADEMY, ITS MEMBERS/ TRUSTEES ANDADVISERSFOR THE YEAR ENDED 31 AUGUST 2015

Trustees

Elaine Blunt, Chair1,2

Brad Akrill, Staff Trustee1

Matthew Anwyll, Staff TrusteeSusan BaileyAlison BennettMark Bond, Staff Trustee (resigned 19 September 2014)Alan Davies1

Gianni De Fraja1

Edward Green, Headteacher and Accounting OfficerDavid Heath1

Daphne HodkinsonJudy Hunt2

Peter McBride1,2

Alison Smith (resigned 17 September 2015)Estelle VincentSimon Weeks1

Lynne Stinson (appointed 7 October 2014)Charlotte Lauder, Staff Trustee (appointed 3 November 2014)

1 Finance and General Purposes Committee2 Member

Company registeration number

08126868

Principal and registered office

Nottingham Road, Ashby de la Zouch, Leicestershire, LE65 1DT

Company secretary

Andrew J Burton

Senior management team

Edward Green, HeadteacherGeoffrey Staniforth, Deputy HeadteacherMargaret Hawksworth, Director of Post 16 StudiesAndrew Binns, Director of Key Stage 4Jevon Hirst, Director of Student AchievementAlison Jackson, Director of Teaching and LearningAndrew Burton, Business Manager

Independent auditor

MHA MacIntyre Hudson, 11 Merus Court, Meridian Business Park, Leicester, LE19 1RJ

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ASHBY SCHOOL


REFERENCE AND ADMINISTRATIVE DETAILS OF THE ACADEMY, ITS MEMBERS/ TRUSTEES ANDADVISERSFOR THE YEAR ENDED 31 AUGUST 2015

Administrative details (continued)

Bankers

National Westminster Bank Plc, 54 Market Street, Ashby de la Zouch, Leicestershire, LE65 1BB

Solicitors

Leicestershire County Council Legal Services, County Hall, Glenfield, Leicester, LE3 8RF

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ASHBY SCHOOL


TRUSTEES' REPORTFOR THE YEAR ENDED 31 AUGUST 2015

The Trustees present their annual report together with the financial statements and auditors’ reports of thecharitable company for the year ended 31 August 2015. The annual report serves the purposes of both aTrustees’ Report, and a Directors’ Report under company law.

The Trust operates an Academy for pupils aged 14 to 19 serving a catchment area in Leicestershire. It has aplanned capacity of 1,842 and had a roll of 1,735 in the school census on October 2015.

STRUCTURE, GOVERNANCE AND MANAGEMENT

CONSTITUTION

Ashby School is a company limited by guarantee and an exempt charity. The charitable company’sMemorandum and Articles of Association are the primary governing documents of the Academy Trust.

The Trustees of Ashby School are also the Directors and Trustees of the charitable company for the purposes ofcompany law. The charitable company is known as Ashby School.

Details of the Trustees who served throughout the year except as noted are included in the Reference andAdministrative Details on page 1.

MEMBERS' LIABILITY

Each member of the charitable company undertakes to contribute to the assets of the charitable company in theevent of it being wound up while they are a member, or within one year after they cease to be a member, suchamount as may be required, not exceeding £10, for the debts and liabilities contracted before they ceased to bea member.

TRUSTEES' INDEMNITIES

The Companies Act 2006 s236 requires disclosure concerning qualifying third party indemnity provisions.Trustee benefit from indemnity insurance to cover the liability of the Trustee which by virtue of any rule of lawwould otherwise attach to them in respect of any negligence, default or breach of trust, or breach of duty of whichthey may be guilty in relation to the Academy Trust. The cost of this insurance in the year was £2,967.

METHOD OF RECRUITMENT AND APPOINTMENT OR ELECTION OF TRUSTEES

The appointment and recruitment of Trustees is outlined in the Articles of Associations. Trustees may appoint upto five Community Trustees (Co-opted) by a majority vote. The appointment of three Staff Trustees is via aprocess of a staff ballot. The appointment of five Parent Trustees is made via a parent ballot. The EndowedSchools Foundation may appoint one Foundation Trustee by giving written notice to the Academy.

POLICIES AND PROCEDURES ADOPTED FOR THE INDUCTION AND TRAINING OF TRUSTEES

Trustee induction training forms part of a menu of extensive specialised training which is available through thelocal network of schools to support all new Trustees. The Academy buys into the Leicestershire Local AuthorityTrustee Development Service which offers further Trustee training. An internal training day for Trustees is held atthe Academy in the Spring Term to cover specific curriculum initiatives. The Trustees also subscribe to theAshby Learning Community and the Forest Way Schools Teaching Alliance, and training and additional coursesare offered through the Academy’s Link Trustee. A skills matrix is being maintained to help identify areas ofstrength and areas requiring further support. Attendance at training events is recorded and when appropriate areport of the event is shared with all the Trustees.

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TRUSTEES' REPORT (continued)FOR THE YEAR ENDED 31 AUGUST 2015

ORGANISATIONAL STRUCTURE

The Governing Body is responsible for setting the strategic framework for the Academy including its aims andobjectives, policies and targets for achieving the objectives, and for reviewing the progress of the Academy byproviding support and challenge to the leadership team. It also sets the annual budget, ensures the solvency ofthe Academy and oversees the arrangements in place to enable all statutory responsibilities to be met.

The roles and responsibilities for the Governing Body and its sub-committees are reviewed at the start of eachacademic year and are identified in the Roles and Responsibilities and Decision Planner.

There are four sub-committees in place to which specific responsibilities are delegated by the main GoverningBody. Each sub-committee is convened and serviced by a member of the leadership team and meets termly.

These are:

• Finance and General Purposes Committee - monitors and evaluates financial management and propertymatters, including the health and safety of the Academy and carries out the functions of an audit committee.

• Curriculum Committee – monitors all learning and other experiences that the school provides for itsstudents, with responsibility for monitoring examination results, teaching of the curriculum, reviewing theassessment policy, provision for collective worship and RE and provision for pupils with special educationalneeds, exceptional ability or those on the Pupil Premium register.

• Personnel Committee – monitors the Performance Management Policy which includes induction andcontinuing professional development, the school’s welfare and safeguarding procedures, formulates pay policiesfor teaching and support staff and reviews staffing levels and recruitment procedures.

• School House Committee – monitors all matters connected to the boarding house including the welfare ofthe boarders, staffing, financial management and property issues.

The Senior Leadership Team is responsible to the Trustees for the implementation and monitoring of plans andpolicies, student safeguarding, education policies and the day-to-day operation of the Academy. They alsoprovide advice to Trustees on a range of educational and business management functions.

The Trustees have approved a scheme of financial delegation that allows financial responsibilities to bedelegated within appropriate limits to facilitate the effective running of the Academy.

CONNECTED ORGANISATIONS, INCLUDING RELATED PARTY RELATIONSHIPS

The Academy is a member of the Ashby and Coalville Educational Partnership (ACE) which works to support theoutcomes for all young people in North West Leicestershire. The partnership develops common policies, agreesa number of shared priorities and is working together in developing a consistent approach to assessment acrosskey stages 3 and 4.

The Academy is also a member of the Ashby Learning Community that supports the progress of learners in ourimmediate family.

The Academy supports a number of local and national charities and each “house” has a nominated charity asdetermined by the students. All charities must be “registered” and have bank accounts in the name of the charity.

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OBJECTIVES AND ACTIVITIES

OBJECTS AND AIMS

The Academy Trust’s objects are specifically restricted to the following:

To advance for the public benefit, education by establishing, maintaining, carrying on, managing and developinga school offering a broad and balanced curriculum.

To promote for the benefit of individuals living in Ashby-de-la-Zouch and the surrounding area who have need byreason of their age, disability, financial hardship or social and economic circumstances, the provision of facilitiesfor recreation or other leisure time activities.

The aims of the Academy are:

• To provide an inclusive environment that welcomes and supports all students to be successful.

• To provide activities and events beyond the curriculum that provide students with a wide range ofenrichment opportunities.

• To ensure that learning opportunities are of the highest quality, thus enabling students to achieve theiracademic potential.

• To encourage students to develop and grow into mature and responsible citizens through ourcommitment to the local and wider community.

OBJECTIVES, STRATEGIES AND ACTIVITIES

This was the second full year of operation as an Academy as the first reporting period ran for 11 months.

The School Improvement Plan had a particular focus on improving outcomes and at the heart of our work was adrive to improve the quality of teaching and learning with a major objective of increasing the percentage of goodand outstanding lessons.

A key element has been to increase the performance of our most vulnerable students particularly in English andMaths.

Following the previous year’s increase in the use of new technologies, which was supported by a majorinvestment in tablet PCs, Apple TVs, portable devices and a move towards a bring your own device strategy, theAcademy has now introduced a Word Press Portal system, upgraded the school network to a 500Mb internetconnectivity and Office365 cloud project.

Further investment in the Learning Hub has continued to provide opportunities to develop interactive andimmersive experiences for our students and those in our local schools.

Continued significant investment has also enabled the Academy to improve the learning environment with anumber of major projects including refurbishment of the Languages Faculty, the Maths Faculty, the SEN facilitiesat Lockton House, the Sports Hall changing rooms, the Sixth Form Centre, the modernisation of the Gymnasiumand its changing rooms, and the Canteen facilities on the Leicester Road site. In addition to this the Academyhas invested in a new outside canopy/shelter for the students, a new school minibus and the refurbishment of anumber of Faculty staffrooms.

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The Academy has boarding accommodation for 73 boarders and is determined to ensure that this provision isfull and was judged to be “Outstanding” in the Ofsted inspection carried out in Spring 2015.

PUBLIC BENEFIT

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

• Providing an extensive programme of extra - curricular activities for students.• Providing a range of opportunities for alternative curriculum students.

• Provision of free buses to enable full participation in after school activities.

Strategic Report

Achievements and performance

KEY PERFORMANCE INDICATORS

Examination results remained very strong at both key stages 4 and 5.

At key stage 4, 69% of students passed 5+ A*-C grades including English and Maths and 80% passed at gradesA*-C overall.

In Maths and Science there were record results at both A*-C grade and significant improvements in 3 levels ofprogress for both English and Maths.

The performance of vulnerable students improved in all categories.

At key stage 5 results were maintained with our ALPS grade for A2 being a “4” and our highest ever score ofgrade “3” at AS.

In 2015 there was significant turbulence and volatility at key stage 4 and it has been encouraging to see theresults remaining well above floor targets.

GOING CONCERN

After making appropriate enquiries, the Board of Trustees has a reasonable expectation that the Academy Trusthas adequate resources to continue in operational existence for the foreseeable future. For this reason itcontinues to adopt the going concern basis in preparing the financial statements. Further details regarding theadoption of the going concern basis can be found in the Statement of Accounting Policies.

Financial review

In 2014/15 the Academy set and maintained a balanced budget carrying forward a planned surplus into 2015/16.The levels of teaching staff set at the start of the year were maintained, but as part of the need for longer termbudget reductions the support staff levels have been reduced by 5.8 FTE through natural wastage. In addition, acomprehensive review of non-staffing expenditure has taken place as part of a longer term cost cutting andefficiency exercise.

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Benchmarking of similar organisations has been undertaken and will be used to inform future discussions andset targets for our future performance.

The main proportion of the Academy’s income is obtained from the Department for Education (DFE) via the EFAin the form of a General Annual Grant (GAG). The use of which is restricted for particular purposes. Such grantsand all associated expenditure is shown as restricted funds in the Statement of Financial Activities for the yearended 31 August 2015. The Academy also generates funds from other activities and these are classed asunrestricted funds.

In addition the Academy has received Pupil Premium funding to address the inequalities between childreneligible for free school meals and their peers. Additional SEN funding has also been received to supportstudents with high needs.

A five year budget plan has been reviewed throughout the year by the Finance and General PurposesCommittee and the impact of reductions in future levels of funding (from general government cuts, falls in thereal value of grants, and the known future reduction in Post 16 funding rates, as well as the potential impact onstudent numbers from age range changes in other schools) suggests that the finances of the Academy willbecome increasingly tight and provision has been made within the Academy’s reserves so we can continue tosupport future expenditure. This has been achieved without compromising the quality of education offered to ourstudents, whilst being able to significantly invest in improvements to the school environment and IT provision.The proactive approach to long term budget planning means that the Academy will be best placed to meet thechallenges that future funding changes will bring.

The Academy’s Finance Policy and Scheme of Delegation was updated and approved by Trustees on 15September 2014. This document sets out key financial responsibilities as outlined in the EFA’s AcademiesFinancial Handbook and the EFA’s CEO annual letter to the Accounting Officer. All expenditure of the AcademyTrust is made in accordance with this Policy which supports the aims of the School Improvement Plan.

PRINCIPAL RISKS AND UNCERTAINTIES

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

The Governing Body accepts managed risk as an inevitable part of its operations but maintains an objective notto run unacceptable levels of risk in any area. The subjective nature of this process requires major risks to beresolved by the Governing Body collectively, whilst more minor risks are dealt with by senior and/or middleleadership teams.

The Academy’s Risk Register and Risk Policy is updated throughout the year. These were discussed andreviewed by Trustees on 6 October 2014.

The principle risks facing the Academy are included in the Risk Register and include:

• Strategic and Reputational Risks.• Operational Risks.• Compliance Risks.• Financial Risks.

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Control measures are in place to manage the identified risks, the key risks include:

• Loss of (or reduction in) funding.• Not operating within its budget and running a deficit.• Inappropriate or insufficient financial controls and systems.• Funding of pension deficits under the Local Government Pension Scheme.• Changing demography resulting in falling rolls.• Loss of reputation.

The key controls used by the Academy to reduce risk include:

• Detailed terms of reference for all committees.• Formal agendas for the Academy Governing Body and committees.• Formal written policies covering all identified risks.• Formal procedures for financial delegated powers.• Clear authorisation and approval levels.• Annual self-evaluation of Payroll, Financial, Catering, IT and Health & Safety procedures.• Formal response to audit action plans.• Completion of the Mazars Schools Fraud Risk Healthcheck.

RESERVES POLICY

It is the policy of the Governing Body to seek to maximize the use of revenue funds available for the students inthe present cohort, with reserves being clearly identified for long term budget planning and long termpredetermined capital projects.

The Academy holds reserves in anticipation of reductions in future levels of funding as it is expected that thefinances of the Academy will become increasingly tight. These reserves are likely to reduce significantly over thenext three financial years. The Trustees will continue to review long term financial planning and retainappropriate funds for future plans where this can be achieved without compromising the quality of educationoffered to students.

Ashby School provides boarding facilities for 73 boarders, and complies with the DFE’s requirement to charge forboarding provision on a full cost recovery basis, and income from fees is in addition to the revenue streamsoutlined above.

See note 19 for total funds.

The deficit on the pension reserve relates to the non-teaching staff pension scheme where, unlike the teachersscheme, separate assets are held to fund future liabilities as discussed in note 24. The deficit can be met in thelonger term from any combination of increased employer or employee contributions, increased governmentfunding or changes to scheme benefits. The restricted funds will be spent in accordance with the terms of theparticular funds. Unrestricted funds are for use on the general purposes of the Academy, at the discretion of theTrustees, and represent 1 month’s worth of Academy expenditure. The aim of the Trustees is to increase thisreserve to meet future working capital requirements.

INVESTMENTS POLICY

The Trustees agreed the Academy’s investment policy on 6 October 2014.

At present the Academy holds a current account, an interest bearing reserve account and a higher interestcharity savings account. At the end of each working day surplus funds are automatically transferred between itscurrent account and reserve account to give the best possible returns at the time. The funds remain in this higher

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interest account until needed to meet outgoing financial commitments, at which point the amount required isautomatically transferred back to the current account, to enable liabilities to be met.

In addition the Academy manages its cashflow to enable it to invest surplus cash funds to optimise returnsavailable. The Academy has therefore opened a charity savings account with another banking provider, whichpays a higher rate of interest. Lump sums are deposited in agreement with Trustees following a risk assessmentof accounts available.

No investment will be made in stocks, shares or any other investment vehicle where there is any risk to thecapital element.

At the end of the reporting year, interest rates have been reviewed with the Academy’s Banking RelationshipManager and compared with other investment opportunities available. This process will be repeated periodically,on at least an annual basis.

FUTURE DEVELOPMENTS

We intend to build on our success in the last academic year and continue to provide both a strong academicplatform and a varied and exciting enrichment programme.

We will be setting targets based on FFT 20 at key stage 4, we aim to maintain or improve our ALPS grade, fosterstronger relationships within our partnership and continue to develop our “alternative” provision.

The Trustees are committed to further investment in both ICT and our infra-structure and intend to consider anumber of potential major refurbishment projects.

A balanced revenue budget for 2015/16 has been approved by the Governing Body that reflects these changesand the surplus balance will be continually monitored and reported throughout the financial year, with some ofthe balance used to fund building projects.

The Trustees are committed to keeping our staffing costs in line with national benchmarks and ensuring that weare able to set a balanced in-year budget.

FUNDS HELD AS CUSTODIAN TRUSTEE ON BEHALF OF OTHERS

There are no assets and arrangements for safe custody and segregation where the Academy or its Trustees areacting as custodian trustee.

DISCLOSURE OF INFORMATION TO AUDITOR

Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:

so far as that Trustee is aware, there is no relevant audit information of which the charitable company'sauditor is unaware, and

that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of anyrelevant audit information and to establish that the charitable company's auditor is aware of that information.

AUDITOR

The auditor, MHA MacIntyre Hudson, has indicated its willingness to continue in office. The Designated Trusteeswill propose a motion re-appointing the auditor at a meeting of the Trustees.

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This report, incorporating the Strategic Report, was approved by order of the Board of Trustees, as the companyDirectors, on 7 December 2015 and signed on the board's behalf by:

................................................Elaine BluntChair

................................................Edward GreenAccounting Officer

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GOVERNANCE STATEMENT

SCOPE OF RESPONSIBILITY

As Trustees, we acknowledge we have overall responsibility for ensuring that Ashby School has an effective andappropriate system of control, financial and otherwise. However such a system is designed to manage ratherthan eliminate the risk of failure to achieve business objectives, and can provide only reasonable and notabsolute assurance against material misstatement or loss.

The Board of Trustees has delegated the day-to-day responsibility to the Headteacher, as Accounting Officer, forensuring financial controls conform with the requirements of both propriety and good financial management andin accordance with the requirements and responsibilities assigned to it in the funding agreement between AshbySchool and the Secretary of State for Education. They are also responsible for reporting to the Board of Trusteesany material weaknesses or breakdowns in internal control.

GOVERNANCE

The information on governance included here supplements that described in the Trustees' Report and in theTrustees' Responsibilities Statement. The Board of Trustees has formally met 4 times during the year.Attendance during the year at meetings of the Board of Trustees was as follows:

Trustee Meetings attended Out of a possible

Elaine Blunt, Chair 4 4Brad Akrill, Staff Trustee 4 4Matthew Anwyll, Staff Trustee 3 4Susan Bailey 4 4Alison Bennett 2 4Mark Bond, Staff Trustee 0 1Alan Davies 4 4Gianni De Fraja 4 4Edward Green, Headteacher and AccountingOfficer

4 4

David Heath 3 4Daphne Hodkinson 4 4Judy Hunt 3 4Peter McBride 4 4Alison Smith 2 4Estelle Vincent 3 4Simon Weeks 4 4Lynne Stinson 3 4Charlotte Lauder, Staff Trustee 3 4

In the last academic year there have been two new appointments to the Board of Trustees and one resignation.The Trustees are pursuing a number of options with regard to the community Trustee vacancy. There is currentlya review of the Board of Trustees taking place due to the number of terms of office coming to an end of a fouryear cycle in Summer 2016.

CPD practice at the school is outstanding and in our CPD mark assessment, no significant weaknesses wereidentified. The CPD Trustee role has been established and the nominated Trustee leads training sessions,undertakes departmental visits, and attends meetings and the new staff residential induction. Through thesemeasures they have developed a good knowledge and understanding of CPD to keep Trustees informed of howschool priorities are being met. The role of CPD lead has transferred to a newly appointed AssistantHeadteacher.

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GOVERNANCE STATEMENT (continued)

The Finance and General Purposes Committee is a sub-committee of the main Board of Trustees. Its purposeis, in consultation with the Headteacher and Business Manager, to draft the first formal budget plan of the year,establish and maintain an up-to-date five year financial plan, monitor and forecast relevant income andexpenditure for all areas, report significant anomalies, ensure the school operates in accordance with thefinancial regulations and the direction of the Education Funding Agency, annually review the Academy’s scale ofcharges, oversee the arrangements for competitive tendering, and review and update policies relating to financialmatters. It also carries out the functions of an audit committee by driving the process of independent checking offinancial controls, systems, transactions and risks. It also receives the termly report from the Health and SafetyCommittee.

The Chair of this Committee reports termly to the Board of Trustees.

Attendance at meetings in the year was as follows:

Trustee Meetings attended Out of a possible

Brad Akrill 4 4Elaine Blunt 4 4Alan Davies 3 4Gianni De Fraja 3 4David Heath, Chair 2 4Peter McBride 4 4Simon Weeks 2 4

REVIEW OF VALUE FOR MONEY

As Accounting Officer, the Headteacher has responsibility for ensuring that the Academy Trust delivers goodvalue in the use of public resources. The Accounting Officer understands that value for money refers to theeducational and wider societal outcomes achieved in return for the taxpayer resources received.

The Accounting Officer considers how the Trust’s use of its resources has provided good value for money duringeach academic year, and reports to the Board of Trustees where value for money can be improved, including theuse of benchmarking data where available. The Accounting Officer for the Academy Trust has deliveredimproved value for money during the year by:

Undertaking a comprehensive review of all non-staffing contracts in place across the school. Each contracthas been analysed and its necessity, scope and competitiveness assessed. Significant savings have beenmade particularly in external maintenance.

Commissioning independent audits of the school’s print management by three separate externalcompanies. All commented that the school already managed its printing very successfully with cost beingkept low through various methods including diverting a high proportion of work to higher capacity devices. The audit found that an externally managed printing solution would not be cost effective, and has led to thedecision for the school to utilise software available to further improve their internally managed system tofurther drive down expenditure.

Initiating an external audit of the school’s heating systems, with the aim to reduce the number of boilersacross the school and improve thermal efficiency. A masterplan has been commissioned to identify a longterm strategy for reducing energy consumption across multiple buildings on the two sites forming thecampus by reducing the number of boilers which total in excess of 35 many of which are up to 30 years oldand provide central control capability and ultimately reduce costs in running and maintenance.

Carrying out a range of risk management improvements and implementing a number or site securityrecommendations as part of an ongoing action plan arising from a risk assessment by an externalconsultant. This has led to the Academy being awarded as winner of the Leicestershire Academies RiskManagement Award in July 2015.

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THE PURPOSE OF THE SYSTEM OF INTERNAL CONTROL

The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk offailure to achieve policies, aims and objectives. It can therefore only provide reasonable and not absoluteassurance of effectiveness. The system of internal control is based on an on-going process designed to identifyand prioritise the risks to the achievement of the Academy Trust policies, aims and objectives, to evaluate thelikelihood 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 Ashby School for the period 1September 2014 to 31 August 2015 and up to the date of approval of the annual report and financial statements.

CAPACITY TO HANDLE RISK

The Board of Trustees has reviewed the key risks to which the Academy is exposed together with the operating,financial and compliance controls that have been implemented to mitigate those risks. The Board of Trustees isof the view that there is a formal ongoing process for identifying, evaluating and managing the Academy'ssignificant risks, that has been in place for the year 1 September 2014 to 31 August 2015 and up to the date ofapproval of the annual report and financial statements. This process is regularly reviewed by the Board ofTrustees.

THE RISK AND CONTROL FRAMEWORK

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

- comprehensive budgeting and monitoring systems with an annual budget and periodic financial reports which are reviewed and agreed by the Board of Trustees;

- regular reviews by the Finance and General Purposes Committee of reports which indicate financial performance against the forecasts and of major purchase plans, capital works and expenditure programmes;

- setting targets to measure financial and other performance;clearly defined purchasing (asset purchase or capital investment) guidelines.

- delegation of authority and segregation of duties;- identification and management of risks.- dedicated annual risk assessments for budgetary, payroll, catering and IT systems.

The Board of Trustees has considered the need for a specific internal audit function and has decided to appointLeicestershire County Council Internal Audit Service as internal auditor.

The internal auditor's role includes giving advice on financial matters, performing a range of checks on theAcademy's financial systems, and disseminating regular intelligence to help the Academy mitigate the risk offraud.

On an annual basis, the internal auditor reports to the Board of Trustees on the operation of the systems ofcontrol and on the discharge of the Board of Trustees' financial responsibilities.

The Finance and General Purposes Committee is responsible for agreeing an action plan and monitoring itssuccessful implementation, and reporting to the Board of Trustees.

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REVIEW OF EFFECTIVENESS

As Accounting Officer, the Headteacher has responsibility for reviewing the effectiveness of the system ofinternal control. During the year in question the review has been informed by:

the work of the internal auditor; the work of the external auditor; the financial management and governance self-assessment process; the work of the senior leaders 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 internalcontrol by the Finance and General Purposes Committee and a plan to address weaknesses and ensurecontinuous improvement of the system is in place.

Approved by order of the members of the Board of Trustees on 7 December 2015 and signed on its behalf, by:

................................................Elaine BluntChair of Trustees


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STATEMENT ON REGULARITY, PROPRIETY AND COMPLIANCE

As Accounting Officer of Ashby School I have considered my responsibility to notify the Academy Board ofTrustees and the Education Funding Agency of material irregularity, impropriety and non-compliance with EFAterms and conditions of funding, under the funding agreement in place between the Academy and the Secretaryof State. As part of my consideration I have had due regard to the requirements of the Academies FinancialHandbook.

I confirm that I and the Academy Board of Trustees are able to identify any material, irregular or improper use offunds by the Academy, or material non-compliance with the terms and conditions of funding under theAcademy's funding agreement and the Academies Financial Handbook.

I confirm that no instances of material irregularity, impropriety or funding non-compliance have been discoveredto date. If any instances are identified after the date of this statement, these will be notified to the Board ofTrustees and EFA.


7 December 2015

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TRUSTEES' RESPONSIBILITIES STATEMENTFOR THE YEAR ENDED 31 AUGUST 2015

The Trustees (who act as Trustees of Ashby School and are also the Directors of the charitable company forthe purposes of company law) are responsible for preparing the Trustees' Report (including the StrategicReport) and the financial statements in accordance with the Annual Accounts Direction published by theEducation Funding Agency, United Kingdom Accounting Standards (United Kingdom Generally AcceptedAccounting Practice) and applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year. Under company lawthe Trustees must not approve the financial statements unless they are satisfied that they give a true and fairview of the state of affairs of the charitable company and of its incoming resources and application ofresources, including its income and expenditure, for that period. In preparing these financial statements, theTrustees are required to:

select suitable accounting policies and then apply them consistently;

observe the methods and principles of the Charities SORP;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departuresdisclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that thecharitable company will continue in business.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explainthe charitable company's transactions and disclose with reasonable accuracy at any time the financial positionof the charitable company and enable them to ensure that the financial statements comply with the CompaniesAct 2006. They are also responsible for safeguarding the assets of the charitable company and hence fortaking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for ensuring that in its conduct and operation the charitable company appliesfinancial and other controls, which conform with the requirements both of propriety and of good financialmanagement. They are also responsible for ensuring grants received from EFA/DfE have been applied for thepurposes intended.

The Trustees are responsible for the maintenance and integrity of the corporate and financial informationincluded on the charitable company's website. Legislation in the United Kingdom governing the preparation anddissemination of financial statements may differ from legislation in other jurisdictions.

Approved by order of the members of the Board of Trustees on 7 December 2015 and signed on its behalf by:


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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ASHBY SCHOOL

We have audited the financial statements of Ashby School for the year ended 31 August 2015 which comprisethe Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and the related notes. Thefinancial reporting framework that has been applied in their preparation is applicable law, United KingdomAccounting Standards (United Kingdom Generally Accepted Accounting Practice) and the Academies AccountsDirection 2014 to 2015 issued by the Education Funding Agency.

This report is made solely to the Academy's Trustees, as a body, in accordance with Chapter 3 of Part 16 of theCompanies Act 2006. Our audit work has been undertaken so that we might state to the Academy's Trusteesthose matters we are required to state to them in an Auditor's Report and for no other purpose. To the fullestextent permitted by law, we do not accept or assume responsibility to anyone other than the Academy and itsTrustees, as a body, for our audit work, for this report, or for the opinion we have formed.

RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND AUDITOR

As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors ofthe Academy for the purposes of company law) are responsible for the preparation of the financial statementsand for being satisfied that they give a true and fair view.

Our responsibility is to audit and express an opinion on the financial statements in accordance with applicablelaw and International Standards on Auditing (UK and Ireland). Those standards require us to comply with theAuditing Practices Board's Ethical Standards for Auditors.

SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient togive reasonable assurance that the financial statements are free from material misstatement, whether caused byfraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Academy'scircumstances and have been consistently applied and adequately disclosed; the reasonableness of significantaccounting estimates made by the Trustees; and the overall presentation of the financial statements. In addition,we read all the financial and non-financial information in the Trustees' Report to identify material inconsistencieswith the audited financial statements and to identify any information that is apparently materially incorrect basedon, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If webecome aware of any apparent material misstatements or inconsistencies we consider the implications for ourreport.

OPINION ON FINANCIAL STATEMENTS

In our opinion the financial statements:

give a true and fair view of the state of the Academy's affairs as at 31 August 2015 and of its incomingresources 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 AcademiesAccounts Direction 2014 to 2015 issued by the Education Funding Agency.

OPINION ON OTHER MATTER PRESCRIBED BY THE COMPANIES ACT 2006

In our opinion the information given in the Trustees' Report, incorporating the Strategic Report, for the financialyear for which the financial statements are prepared is consistent with the financial statements.

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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ASHBY SCHOOL

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us toreport to you if, in our opinion: adequate accounting records have not been kept, or returns adequate for our audit have not been received

from branches not visited by us; or the financial statements are not in agreement with the accounting records and returns; or

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

Robert A Nelson BA FCA DChA (Senior Statutory Auditor) for and on behalf of MHA MacIntyre Hudson

Chartered AccountantsStatutory Auditors 11 Merus CourtMeridian Business ParkLeicesterLE19 1RJ18 December 2015

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

In accordance with the terms of our engagement letter dated 7 August 2015 and further to the requirements ofthe Education Funding Agency (EFA) as included in the Academies Accounts Direction 2014 to 2015, we havecarried out an engagement to obtain limited assurance about whether the expenditure disbursed and incomereceived by Ashby School during the year 1 September 2014 to 31 August 2015 have been applied to thepurposes identified by Parliament and the financial transactions conform to the authorities which govern them.

This report is made solely to Ashby School and EFA in accordance with the terms of our engagement letter. Ourwork has been undertaken so that we might state to Ashby School and EFA those matters we are required tostate in a report and for no other purpose. To the fullest extent permitted by law, we do not accept or assumeresponsibility to anyone other than Ashby School and EFA, for our work, for this report, or for the conclusion wehave formed.

RESPECTIVE RESPONSIBILITIES OF ASHBY SCHOOL'S ACCOUNTING OFFICER AND THE REPORTINGACCOUNTANT

The Accounting Officer is responsible, under the requirements of Ashby School's funding agreement with theSecretary of State for Education dated 8 October 2012, and the Academies Financial Handbook extant from 1September 2014, for ensuring that expenditure disbursed and income received is applied for the purposesintended by Parliament and the financial transactions conform to the authorities which govern them.

Our responsibilities for this engagement are established in the United Kingdom by our profession's ethicalguidance and are to obtain limited assurance and report in accordance with our engagement letter and therequirements of the Academies Accounts Direction 2014 to 2015. We report to you whether anything has cometo our attention in carrying out our work which suggests that in all material respects, expenditure disbursed andincome received during the year 1 September 2014 to 31 August 2015 have not been applied to purposesintended by Parliament or that the financial transactions do not conform to the authorities which govern them.

APPROACH

We conducted our engagement in accordance with the Academies Accounts Direction 2014 to 2015 issued byEFA. We performed a limited assurance engagement as defined in our engagement letter.

The objective of a limited assurance engagement is to perform such procedures as to obtain information andexplanations in order to provide us with sufficient appropriate evidence to express a negative conclusion onregularity.

A limited assurance engagement is more limited in scope than a reasonable assurance engagement andconsequently does not enable us to obtain assurance that we would become aware of all significant matters thatmight be identified in a reasonable assurance engagement. Accordingly, we do not express a positive opinion.

Our engagement includes examination, on a test basis, of evidence relevant to the regularity and propriety of theAcademy's income and expenditure.

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

The work undertaken to draw our conclusions includes:• reviewing the information in the Financial Management and Governance Self-assessment (FMGS)

return and making appropriate enquiries of the Accounting Officer.• a review of the objectives and activities of the academy, with reference to the income streams and other

information available to us as auditors of the academy• testing of a sample of grants received and other income streams• testing of a sample of payments to suppliers and other third parties• testing of a sample of payroll payments to staff• evaluating the internal control procedures and reporting lines, and testing as appropriate• reviewing the Minutes of the meetings of the Governing Body and other evidence made available to us,

relevant to our consideration of regularity

CONCLUSION

In the course of our work, nothing has come to our attention which suggests that in all material respects theexpenditure disbursed and income received during the year 1 September 2014 to 31 August 2015 have not beenapplied to purposes intended by Parliament and the financial transactions do not conform to the authorities whichgovern them.

MHA MacIntyre Hudson

Chartered AccountantsStatutory Auditors 11 Merus CourtMeridian Business ParkLeicesterLE19 1RJ

18 December 2015

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STATEMENT OF FINANCIAL ACTIVITIES(Incorporating Income and Expenditure Account and Statement of Total Recognised Gains and Losses)FOR THE YEAR ENDED 31 AUGUST 2015

Unrestrictedfunds

Restrictedfunds

Restrictedfixed asset

fundsTotal

fundsTotalfunds

Note2015£000

2015£000

2015£000

2015£000

2014£000

INCOMING RESOURCES

Incoming resources fromgenerated funds:

Activities for generating funds 2 395 - - 395 383 Investment income 3 9 - - 9 9Incoming resources from

charitable activities: 4 Funding for Academy Trust's

educational operations - 8,725 38 8,763 8,830 Provision of boarding activities - 806 - 806 766

TOTAL INCOMINGRESOURCES 404 9,531 38 9,973 9,988

RESOURCES EXPENDED

Costs of generating funds: Costs of activities for

generating funds 5 312 9 - 321 318Charitable activities: 6 Academy Trust educational

operations - 8,278 480 8,758 8,979 Provision of boarding activities - 698 - 698 726Governance costs 7 - 14 - 14 21

TOTAL RESOURCESEXPENDED 8 312 8,999 480 9,791 10,044

NET INCOMING/(OUTGOING)RESOURCES BEFORE TRANSFERS, CARRIEDFORWARD 92 532 (442) 182 (56)

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STATEMENT OF FINANCIAL ACTIVITIES (continued)FOR THE YEAR ENDED 31 AUGUST 2015

Unrestrictedfunds

Restrictedfunds


fundsTotal

fundsTotalfunds

Note2015£000

2015£000

2015£000

2015£000

2014£000

NET INCOMING / (OUTGOING)RESOURCES BEFORE TRANSFERS, BROUGHTFORWARD 92 532 (442) 182 (56)

Transfers between funds 19 - (555) 555 - -

NET INCOME /(EXPENDITURE) FOR THEYEAR 92 (23) 113 182 (56)

Actuarial gains/(losses) ondefined benefit pensionschemes - 44 - 44 (1,005)

NET MOVEMENT IN FUNDSFOR THE YEAR 92 21 113 226 (1,061)

Total funds at 1 September2014 616 (2,839) 18,743 16,520 17,581

TOTAL FUNDS AT 31AUGUST 2015 708 (2,818) 18,856 16,746 16,520

All activities relate to continuing operations.

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 26 to 47 form part of these financial statements.

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ASHBY SCHOOL (A Company Limited by Guarantee)REGISTERED NUMBER: 08126868

BALANCE SHEETAS AT 31 AUGUST 2015

2015 2014Note £000 £000 £000 £000

FIXED ASSETS

Tangible assets 14 18,856 18,743

CURRENT ASSETS

Stocks 15 5 8

Debtors 16 337 238

Cash at bank and in hand 2,104 1,444

2,446 1,690

CREDITORS: amounts falling due withinone year 17 (1,292) (800)

NET CURRENT ASSETS 1,154 890

TOTAL ASSETS LESS CURRENT LIABILITIES 20,010 19,633

PROVISIONS FOR LIABILITIES

Other provisions 18 (13) (13)

NET ASSETS EXCLUDING PENSIONSCHEME LIABILITY 19,997 19,620

Defined benefit pension scheme liability 24 (3,251) (3,100)

NET ASSETS INCLUDING PENSIONSCHEME LIABILITY 16,746 16,520

FUNDS OF THE ACADEMY

Restricted funds:

Restricted funds 19 433 261

Restricted fixed asset funds 19 18,856 18,743

Restricted funds excluding pension liability 19,289 19,004

Pension reserve (3,251) (3,100)

Total restricted funds 16,038 15,904

Unrestricted funds: 19 708 616

TOTAL FUNDS 16,746 16,520

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BALANCE SHEET (continued)AS AT 31 AUGUST 2015

The financial statements were approved by the Trustees, and authorised for issue, on 7 December 2015 and aresigned on their behalf, by:




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CASH FLOW STATEMENTFOR THE YEAR ENDED 31 AUGUST 2015

2015 2014Note £000 £000

Net cash flow from operating activities 21 1,206 721

Returns on investments and servicing of finance 22 9 9

Capital expenditure and financial investment 22 (555) (398)

INCREASE IN CASH IN THE YEAR 660 332

RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDSFOR THE YEAR ENDED 31 AUGUST 2015

2015 2014 £000 £000

Increase in cash in the year 660 332

MOVEMENT IN NET FUNDS IN THE YEAR 660 332

Net funds at 1 September 2014 1,444 1,112

NET FUNDS AT 31 AUGUST 2015 2,104 1,444


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NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 AUGUST 2015

1. ACCOUNTING POLICIES

1.1 Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention. The financialstatements have been prepared in accordance with the Statement of Recommended Practice(SORP), 'Accounting and Reporting by Charities' published in March 2005, the Academies AccountsDirection 2014 to 2015 issued by EFA, applicable accounting standards and the Companies Act2006. A summary of the principal accounting policies, which have been applied consistently, exceptwherenoted, is set out below.

1.2 Fund accounting

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

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

Restricted general funds comprise all other restricted funds received and include grants from theDepartment for Educationand Education Funding Agency.

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

1.3 Incoming resources

All incoming resources are included in the Statement of Financial Activities when the Academy hasentitlement to the funds, certainty of receipt and the amount can be measured with sufficientreliability.

Grants are included in the Statement of Financial Activities on a receivable basis. The balance ofincome received for specific purposes but not expended during the period is shown in the relevantfunds on the Balance Sheet. Where income is received in advance of entitlement of receipt, itsrecognition is deferred and included in creditors as deferred income. Where entitlement occursbefore income is received, the income is accrued.

General Annual Grant is recognised in full in the year for which it is receivable and any unspentamount 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 onwhich they are expended. Unspent amounts of capital grant are reflected in the balance sheet inrestricted funds.

Sponsorship income provided to the Academy which amounts to a donation is recognised in theStatement of Financial Activities in the period in which it is receivable, where there is certainty ofreceipt and it is measurable.

The value of donated services and gifts in kind provided to the Academy are recognised at theiropen market value in the period in which they are receivable as incoming resources, where thebenefit to the Academy can be reliably measured. An equivalent amount is included as expenditureunder the relevant heading in the Statement of Financial Activities, except where the gift in kind wasa fixed asset in which case the amount is included in the appropriate fixed asset category anddepreciated over the useful economic life in accordance with the Academy's policies.

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1. ACCOUNTING POLICIES (continued)

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

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant isrecognised at the time of the donation.

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

1.4 Resources expended

Expenditure is recognised in the period in which a liability is incurred and has been classified underheadings that aggregate all costs related to that category. Where costs cannot be directly attributedto particular headings they have been allocated on a basis consistent with the use of resources, withcentral staff costs allocated on the basis of time spent, and depreciation charges allocated on theportion of the asset's use. Other support costs are allocated based on the spread of staff costs.

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

Charitable activities are costs incurred in the Academy's educational operations.

Governance costs include the costs attributable to the Academy's compliance with constitutional andstatutory requirements, including audit, strategic management and Trustees' meetings andreimbursed expenses.

All resources expended are inclusive of irrecoverable VAT.

1.5 Going concern

The Trustees assess whether the use of going concern is appropriate, i.e. whether there are anymaterial uncertainties related to events or conditions that may cast significant doubt on the ability ofthe Academy to continue as a going concern. The Trustees make this assessment in respect of aperiod of one year from the date of approval of the financial statements.

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1.6 Tangible fixed assets and depreciation

All assets costing more than £1,000 are capitalised.

Where tangible fixed assets have been acquired with the aid of specific grants, either from thegovernment or from the private sector, they are included in the Balance Sheet at cost anddepreciated over their expected useful economic life. The related grants are credited to a restrictedfixed asset fund in the Statement of Financial Activities and are carried forward in the BalanceSheet. Depreciation on such assets is charged to the restricted fixed asset fund in the Statement ofFinancial Activities so as to reduce the fund over the useful economic life of the related asset on abasis consistent with the Academy's depreciation policy.

Assets transferred at conversion have been included at the estimated depreciated replacement cost.

The policy with respect to impairment reviews of fixed assets is that a review for impairment of afixed asset is carried out if events or changes in circumstances indicate that the carrying vallue ofany fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets andtheir recoverable amounts are recognised as impairments. Impairment losses are recognised in theStatement of Finanacial Activities as appropriate.

Tangible fixed assets are stated at cost less depreciation. Depreciation is not charged on freeholdland. Depreciation on other tangible fixed assets is provided at rates calculated to write off the costof those assets, less their estimated residual value, over their expected useful lives on the followingbases:

Long leasehold property - 2% straight line per annumMotor vehicles - 20% straight line per annumFixtures and fittings - 10% straight line per annumComputer equipment - 33.33% straight line per annum

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

1.7 Operating leases

Rentals under operating leases are charged to the Statement of Financial Activities on a straight linebasis over the lease term.

1.8 Stocks

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

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1.9 Taxation

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

1.10 Pensions

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

The TPS is an unfunded scheme and contributions are calculated so as to spread the cost ofpensions over employees' working lives with the Academy in such a way that the pension cost is asubstantially level percentage of current and future pensionable payroll. The contributions aredetermined by the Government Actuary on the basis of quinquennial valuations using a prospectivebenefit method. As stated in note 24, the TPS is a multi-employer scheme and the Academy isunable to identify its share of the underlying assets and liabilities of the scheme on a consistent andreasonable basis. The TPS is therefore treated as a defined contribution scheme and thecontributions recognised as they are paid each year.

The LGPS is a funded scheme and the assets are held separately from those of the Academy inseparate trustee administered funds. Pension scheme assets are measured at fair value andliabilities are measured on an actuarial basis using the projected unit method and discounted at arate equivalent to the current rate of return on a high quality corporate bond of equivalent term andcurrency to the liabilities. The actuarial valuations are obtained at least triennially and are updated ateach balance sheet date. The amounts charged to operating surplus are the current service costsand gains and losses on the 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 benefitshave vested. If the benefits have not vested immediately, the costs are recognised over the periodvesting occurs. The expected return on assets and the interest cost are shown as a net financeamount of other finance costs or credits adjacent to interest. Actuarial gains and losses arerecognised immediately in other gains and losses.

2. ACTIVITIES FOR GENERATING FUNDS

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2015£000

2015£000

2015£000

2014£000

Catering income 296 - 296 296Lettings income 40 - 40 36Other income 59 - 59 51

395 - 395 383

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3. INVESTMENT INCOME

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2015£000

2015£000

2015£000

2014£000

Interest receivable 9 - 9 9

4. INCOMING RESOURCES FROM CHARITABLE ACTIVITIES

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2015£000

2015£000

2015£000

2014£000

Educational Operations - 8,763 8,763 8,830Boarding Activities - 806 806 766

- 9,569 9,569 9,596

FUNDING FOR ACADEMY'S EDUCATIONAL OPERATIONS

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2015£000

2015£000

2015£000

2014£000

DfE/EFA revenue grants

General Annual Grant (GAG) - 8,182 8,182 8,287Pupil Premium - 165 165 139Capital grant - 38 38 63Other EFA/DfE grants - 114 114 49

- 8,499 8,499 8,538

Other government grants

Local Authority grants - 105 105 35

- 105 105 35

Other funding

Trips income and parental contributions - 138 138 245Exam income - 21 21 12

- 159 159 257

- 8,763 8,763 8,830

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5. COSTS OF ACTIVITIES FOR GENERATING FUNDS

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2015£000

2015£000

2015£000

2014£000

Catering costs 147 9 156 161Catering staff costs 149 - 149 140Lettings costs 7 - 7 8Lettings staff costs 9 - 9 9

312 9 321 318

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6. CHARITABLE ACTIVITIES

Totalfunds

Totalfunds

2015£000

2014£000

DIRECT COSTS - EDUCATIONAL OPERATIONS

Wages and salaries 4,407 4,510National insurance 334 347Pension cost 753 702Depreciation 480 541Educational supplies 283 222Examination fees 341 318Staff development 23 24Other direct costs 135 240

Total 6,756 6,904

SUPPORT COSTS - EDUCATIONAL OPERATIONS

Wages and salaries 845 871National insurance 47 49Pension cost 153 143Pension finance cost (note 13) 69 70Staff development 3 1Travel and subsistence 28 30Recruitment and support 27 25Maintenance of premises and equipment 365 438Cleaning 15 14Rent and rates 49 33Energy costs 125 123Insurance 120 127Legal and professional 49 47Other support costs 94 94Bank charges and interest 12 10

Subtotal 2,001 2,075

Other 1 -

Total 2,002 2,075

Total Academy's educational operations 8,758 8,979

BOARDING ACTIVITIES

Direct costs 206 202Support costs 492 524

Total other activities 698 726

Total direct and support costs 9,456 9,705

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7. GOVERNANCE COSTS

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2015£000

2015£000

2015£000

2014£000

Governance Internal audit costs - 1 1 -Auditors' remuneration - audit services - 13 13 21

- 14 14 21

8. RESOURCES EXPENDED

Staff costs Non Pay Expenditure Total TotalPremises Other costs

2015£000

2015£000

2015£000

2015£000

2014£000

Costs of generating funds:

Costs of activities forgenerating funds 149 - 156 305 318

Subtotal costs of generatingfunds 149 - 156 305 318

Charitable activities:

Educational Operations 5,494 407 855 6,756 6,904Boarding Activities 123 - 83 206 202Support costs - Educational

Operations 1,123 532 346 2,001 2,075Support costs - Boarding

Activities 348 85 59 492 524

Subtotal charitable activities 7,088 1,024 1,343 9,455 9,705

Governance - - 14 14 21

7,237 1,024 1,513 9,774 10,044

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9. NET INCOMING / (OUTGOING) RESOURCES

This is stated after charging:

2015 2014 £000 £000

Depreciation of tangible fixed assets 480 541Auditors' remuneration - audit services 13 21Governance Internal audit costs 1 -

10. STAFF

a. Staff costs

Staff costs were as follows:

2015 2014 £000 £000

Wages and salaries 5,699 5,803Social security costs 403 416Other pension costs 990 920

7,092 7,139Supply teacher costs 76 91FRS17 costs (note 13) 69 70

7,237 7,300

b. Staff numbers

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

2015 2014 No. No.

Teachers 93 97Support 67 70Boarding 15 16Management 7 6

182 189

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10. STAFF (continued)

c. Higher paid staff

The number of employees whose emoluments fell within the following bands was:

2015 2014 No. No.

In the band £60,001 - £70,000 4 5In the band £100,001 - £110,000 1 1

Four of the above employees participated in the Teachers' Pension Scheme. During the year ended 31August 2015, pension contributions for these staff members amounted to £42,370 (2014 - £49,861). Theother staff member participated in the Local Government Pension Scheme and the pension contributionsfor the period ended 31 August 2015 amounted to £12,531 (2014 - £12,198).

11. TRUSTEES' REMUNERATION AND EXPENSES

One or more Trustees has been paid remuneration or has received other benefits from an employmentwith the Academy Trust. The Headteacher and other staff Trustees only receive remuneration in respectof services they provide undertaking the roles of principal and other staff members under their contracts ofemployment, and not in respect of their role as Trustees. The value of Trustees' remuneration and otherbenefits was as follows:

2015 2014 £000 £000

Edward Green (Headteacher) 105-110 105-110Edward Green Employer Pension Contributions 15-20 10-15Brad Akrill 25-30 20-25Brad Akrill Employer Pension Contributions 5-10 0-5Mark Bond 0-5 30-35Mark Bond Employer Pension Contributions - -Matthew Anwyll 40-45 35-40Matther Anwyll Employer Pension Contributions 5-10 5-10Charlotte Lauder 35-40 -Charlotte Lauder Employer Pension Contributions 5-10 -

During the year, 2 Trustees (2014 - 2 Trustees) received reimbursement of expenses totalling £113 (2014- £254).

Other related party transactions involving the Trustees are set out in note 26.

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12. TRUSTEES' AND OFFICERS' INSURANCE

In accordance with normal commercial practice the Academy has purchased insurance to protectTrustees and officers from claims arising from negligent acts, errors or omissions occurring whilst onAcademy business. The insurance provides cover up to £3,000,000 on any one claim and the cost for theyear ended 31 August 2015 was £2,967 (2014 - £3,465). The cost of this insurance is included in the totalinsurance cost.

13. PENSION FINANCE COST

2015 2014 £000 £000

Expected return on pension scheme assets 145 115Interest on pension scheme liabilities (214) (185)

(69) (70)

14. TANGIBLE FIXED ASSETS

Longleasehold

propertyFixtures

and fittingsComputer

equipmentMotor

vehicles Total£000 £000 £000 £000 £000

Cost

At 1 September 2014 19,012 207 452 15 19,686Additions 457 36 76 24 593

At 31 August 2015 19,469 243 528 39 20,279

Depreciation

At 1 September 2014 656 46 233 8 943Charge for the year 326 26 123 5 480

At 31 August 2015 982 72 356 13 1,423

Net book value

At 31 August 2015 18,487 171 172 26 18,856

At 31 August 2014 18,356 161 219 7 18,743

Included in long leasehold property is leasehold land at a valuation of £2,786,440 (2014 - £2,786,440)which is not depreciated.

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15. STOCKS

2015 2014 £000 £000

Educational books 5 8

16. DEBTORS

2015 2014 £000 £000

General debtors 79 37VAT recoverable 159 118Prepayments and accrued income 99 83

337 238

17. CREDITORS:Amounts falling due within one year

2015 2014 £000 £000

General creditors 514 -Other taxation and social security 118 123Other creditors 144 147Accruals and deferred income 516 530

1,292 800

£000Deferred income

Deferred income at 1 September 2014 456Resources deferred during the year (456)Amounts released from previous years 493

Deferred income at 31 August 2015 493

At the balance sheet date the Academy Trust was holding funds received in advance for boarding fees,trips and rates in relation to funding for the next academic year.

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18. PROVISIONS

Provisions£000

At 1 September 2014 and 31 August 2015 13

Boarding provision

The above provision is related to costs incurred to assess the work required to repair and recommissionthe heating system in the boarding house.

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19. STATEMENT OF FUNDS

Broughtforward

Incomingresources

Resourcesexpended

Transfersin/(out)

Gains/(losses)

Carriedforward

£000 £000 £000 £000 £000 £000

Designated funds

Designated funds 400 - - - - 400

General funds

General Funds - allfunds 216 404 (312) - - 308

Total Unrestrictedfunds 616 404 (312) - - 708

Restricted funds

Boarding income 96 806 (734) - - 168General Annual

Grant (GAG) 165 8,182 (7,527) (555) - 265Other DfE/EFA

grants - 114 (114) - - -Pupil Premium - 165 (165) - - -Other grants - 105 (105) - - -Other income - 159 (159) - - -Pension reserve (3,100) - (195) - 44 (3,251)

(2,839) 9,531 (8,999) (555) 44 (2,818)

Restricted fixed asset funds

Restricted fixedasset fund 18,743 38 (480) 555 - 18,856

Total restrictedfunds 15,904 9,569 (9,479) - 44 16,038

Total of funds 16,520 9,973 (9,791) - 44 16,746

The £400,000 carried forward balance in the designated fund has been specifcally set aside to fundexpected future deficits on restricted income.

Also included within the above restricted carried forward balance is £44,043 set aside for the potentialcosts arising from the defective heating system in the boarding house.

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19. STATEMENT OF FUNDS (continued)

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

General Annual Grant (GAG)Funds from the Education Funding Agency for the provision of education, in line with the fundingagreement.

Under the funding agreement with the Secretary of State, the Academy was not subject to a limit on theamount of GAG that it could carry forward at 31 August 2015. Transfers of £555,000 from GAG funding tothe restricted fixed asset fund represents contributions towards the fixed asset additions in the year.

Other DfE/EFA GrantsOther funds provided by the DfE/EFA for particular purposes within the Academy’s educational operations.

Pupil PremiumAdditional funds from the Education Funding Agency to support their disadvantaged pupils and close theattainment gap between them and their peers. This is allocated for every pupil who receives free schoolmeals.

Capital grantsThis consists of Devolved Formula Capital (DFC) which is to be used for ICT items, improvements tobuilding and other facilities or capital repairs and refurbishments and minor works.

Other grantsThese are funds and grants received from the local authority and other institutions for use on specificeducational projects.

Other incomeThese consist of income from all other sources to be used primarily for the Academy’s educationaloperations.

Pension reserveBeing the fund in relation to the defined benefit pension scheme liability included in the balance sheet. Thefund is in deficit given the nature of the liability, however, this is not payable immediately.

Restricted fixed asset fundThe restricted fixed asset fund was funded predominantly by the funds inherited on conversion to anAcademy Trust from the Local Authority following the transfer of assets. It includes further amountsinvested in fixed assets.

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20. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestrictedfunds

Restrictedfunds


fundsTotal

fundsTotalfunds

2015£000

2015£000

2015£000

2015£000

2014£000

Tangible fixed assets - - 18,856 18,856 18,743Current assets 708 1,738 - 2,446 1,690Creditors due within one year - (1,292) - (1,292) (800)Provisions for liabilities and

charges - (3,264) - (3,264) (3,113)

708 (2,818) 18,856 16,746 16,520

21. NET CASH FLOW FROM OPERATING ACTIVITIES

2015 2014£000 £000

Net incoming resources 182 (56)Returns on investments and servicing of finance (9) (9)Depreciation of tangible fixed assets 480 541Capital grants from DfE (38) (63)Decrease in stocks 3 3(Increase)/decrease in debtors (99) 173Increase/(decrease) in creditors 492 (3)FRS 17 Pension cost less contributions payable 126 65FRS 17 pension finance income (note 13) 69 70

Net cash inflow from operations 1,206 721

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

2015 2014 £000 £000

Returns on investments and servicing of finance

Interest received 9 9

2015 2014 £000 £000

Capital expenditure and financial investment

Purchase of tangible fixed assets (593) (461)Capital grants from DfE 38 63

Net cash outflow capital expenditure (555) (398)

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23. ANALYSIS OF CHANGES IN NET FUNDS

1September Cash flow

Othernon-cashchanges 31 August

2014 2015£000 £000 £000 £000

Cash at bank and in hand: 1,444 660 - 2,104

Net funds 1,444 660 - 2,104

24. PENSION COMMITMENTS

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

The pension costs are assessed in accordance with the advice of independent qualified actuaries. Thelatest actuarial valuation of the TPS related to the period ended 31 March 2012 and of the LGPS 31 March2013.

Contributions amounting to £108,260 were payable to the scheme at 31 August 2015 (2014 - £111,241)and are included within creditors.

Teachers' Pension Scheme

Introduction

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

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

Valuation of the Teachers’ Pension Scheme

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

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

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24. PENSION COMMITMENTS (continued)

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

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

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

During the year the employer contribution rate was 14.1%. The TPS valuation for 2012 determined anemployer rate of 16.4% from September 2015, which will be payable during the implementation perioduntil the next valuation as at March 2016, whereupon the employer contribution rate is expected to bereassessed and will be payable from 1 April 2019.

The employer pension costs paid to Teachers Pension Scheme in the period amounted to £547,000(2014: £560,000).

A copy of the valuation report and supporting documentation is on the Teachers' Pensions website.

Under the definitions set out in Financial Reporting Standard (FRS 17) Retirement Benefits, the TPS is amulti-employer pension scheme. The Academy has accounted for its contributions to the scheme as if itwere a defined contribution scheme. The Academy has set out above the information available on thescheme.

Local Government Pension Scheme

The LGPS is a funded defined benefit scheme, with assets held in separate trustee-administered funds.The total contribution made for the year ended 31 August 2015 was £417,000, of which employer'scontributions totalled £319,000 and employees' contributions totalled £98,000. The agreed contributionrates for future years are 21.7% for employers and between 5.5% and 12.5%% for employees.

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

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The Academy's share of the assets and liabilities in the scheme and the expected rates of return were:

Expectedreturn at Fair value at

Expectedreturn at Fair value at

31 August 31 August 31 August 31 August2015 2015 2014 2014

% £000 % £000

Equities 3.80 1,935 6.30 1,708Bonds 3.80 616 3.30 415Property 3.80 323 4.50 244Cash 3.80 59 3.30 73

Total market value of assets 2,933 2,440Present value of scheme liabilities (6,184) (5,540)

Deficit in the scheme (3,251) (3,100)

The expected rates of return are set equal to the discount rate.The amounts recognised in the Balance Sheet are as follows:

2015 2014 £000 £000

Present value of funded obligations (6,184) (5,540)Fair value of scheme assets 2,933 2,440

Net liability (3,251) (3,100)

The amounts recognised in the Statement of Financial Activities are as follows:

2015 2014 £000 £000

Current service cost (445) (361)Interest on obligation (214) (185)Expected return on scheme assets 145 115

Total (514) (431)

Actual return on scheme assets 104 245

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

2015 2014 £000 £000

Opening defined benefit obligation 5,540 3,830Current service cost 445 361Interest cost 214 185Contributions by scheme participants 98 92Actuarial (gains)/losses (85) 1,124Benefits paid (28) (52)

Closing defined benefit obligation 6,184 5,540

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

2015 2014 £000 £000

Opening fair value of scheme assets 2,440 1,870Expected return on assets 145 115Actuarial (losses)/gains (41) 119Contributions by employer 319 296Contributions by employees 98 92Benefits paid (28) (52)

2,933 2,440

The cumulative amount of actuarial gains and losses recognised in the Statement of Financial Activitieswas £1,292,000 losses (2014 - £1,336,000 losses).

The Academy expects to contribute £338,000 to its Defined Benefit Pension Scheme in 2016.

The major categories of scheme assets as a percentage of total scheme assets are as follows:

2015 2014

Equities %66.00 %70.00Bonds %21.00 %17.00Property %11.00 %10.00Cash %2.00 %3.00

Principal actuarial assumptions at the Balance Sheet date (expressed as weighted averages):

2015 2014

Discount rate for scheme liabilities %3.80 %3.70Expected return on scheme assets at 31 August %3.80 %5.50Rate of increase in salaries %4.60 %4.50Rate of increase for pensions in payment / inflation %2.70 %2.70Inflation assumption (CPI) %2.70 %2.70

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Sensitivity analysis:The sensitivities regarding the proncipal assumptions used to measure the scheme liabilities are set outbelow:

Change in assumptions at 31 August 2015: Approximateincrease to Employer

Liability %

Approximatemonetary amount

(£000)0.5% decreae in Real Discount Rate 14% 8601 year increase in member life expectancy 3% 1860.5% increase in the Salary Increase Rate 8% 4670.5% increase in the Pension Increase Rate 6% 362

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

2015 2014

Retiring todayMales 22.2 22.2Females 24.3 24.3

Retiring in 20 yearsMales 24.2 24.2Females 26.6 26.6

Amounts for the current and previous two periods are as follows:

Defined benefit pension schemes

2015 2014 2013 £000 £000 £000

Defined benefit obligation (6,184) (5,540) (3,830)Scheme assets 2,933 2,440 1,870

Deficit (3,251) (3,100) (1,960)

Experience adjustments on scheme liabilities 85 (1,124) (431)Experience adjustments on scheme assets (41) 119 100

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25. OPERATING LEASE COMMITMENTS

At 31 August 2015 the Academy had annual commitments under non-cancellable operating leases asfollows:

Land and buildings Other2015 2014 2015 2014£000 £000 £000 £000

Expiry date:

Within 1 year - - 4 7Between 2 and 5 years - - - 2

26. RELATED PARTY TRANSACTIONS

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

No related party transactions took place in the year of account.

27. CONTROLLING PARTY

The Academy is ultimately controlled by the Governing Body, which includes the Headteacher.

28. MEMBERS' LIABILITY

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

29. COMPANY LIMITED BY GUARANTEE

The Academy Trust is a company limited by guarantee and does not have share capital.

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