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Registered number: 8663956

RALPH SADLEIR SCHOOL

A COMPANY LIMITED BY GUARANTEE

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 AUGUST 2014


(A Company Limited by Guarantee)

CONTENTS

Page

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

Trustees' Report 2 - 7

Governance Statement 8 - 9

Statement on Regularity, Propriety and Compliance 10

Trustees' Responsibilities Statement 11

Independent Auditors' Report 12 - 13

Independent Reporting Accountant's Assurance Report on Regularity 14 - 15

Statement of Financial Activities 16

Balance Sheet 17

Cash Flow Statement 18

Notes to the Financial Statements 19 - 35



REFERENCE AND ADMINISTRATIVE DETAILS OF THE ACADEMY, ITS TRUSTEES AND ADVISERSFOR THE PERIOD ENDED 31 AUGUST 2014

Members/Trustees G Smith, Chair (appointed 1 October 2014)1,2

L Catanach (appointed 1 October 2014)T Shambrook (appointed 1 October 2014)

Trustees J Tye (appointed 1 October 2014)1,2

R Emes (appointed 1 October 2014)1,2

S Nicolson (appointed 1 October 2014)1

E M Hinton, Head Teacher (appointed 1 October 2014)1

R Brown (appointed 1 October 2014)

1 Member of the Resources Committee2 Member of the Audit Committee

Company registerednumber 8663956

Registered and principaloffice

Ralph Sadleir SchoolStation RoadPuckeridgeHertfordshireSG11 1TF

Company secretary M Devine

Chief executive officer E M Hinton

Senior leadershipteam

E M Hinton, Head TeacherD Spong, Deputy Head TeacherG Bickerstaff, Assistant Head TeacherC Mclver, Assistant Head TeacherK Murfett, Assistant Head TeacherM Devine, Academy Business Manager

Independent auditors Price Bailey LLPChartered AccountantsCauseway House1 Dane StreetBishop's StortfordHertfordshireCM23 3BT

Bankers Natwest Bank104 Fore StreetHertfordSG14 1YY

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TRUSTEES' REPORTFOR THE PERIOD ENDED 31 AUGUST 2014

The Trustees present their annual report together with the financial statements and auditors’ report of Ralph Sadleir School(the Charitable Company) for the year ended 31 August 2014. The annual report serves the purpose of both a trustees’report, and a directors’ report under company law. The Charitable Company operates an academy for pupils aged 9 - 13serving the catchment area of Puckeridge and surrounding villages. It has a pupil capacity of 360 and a roll of 327 in the2014 school census.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution

The Academy Trust is a company limited by guarantee and an exempt charity. The Charitable Company’s memorandumand articles of association are its primary governing documents. The Trustees of the Charitable Company are also theDirectors for the purposes of company law. The terms Trustee and Director are interchangeable. The Charitable Companyis also known as Ralph Sadleir School.

Details of the Trustees who served throughout the year are included in the Reference and Administrative Details section onpage 1.

Member’s liability

Each Member of the Charitable Company undertakes to contribute to the assets of the Charitable Company in the event of itbeing wound up while they are a Member, or within one year after they cease to be a Member, such amount as may berequired, not exceeding £10, for the debts and liabilities contracted before they ceased to be a Member.

Trustee and Officers’ Indemnities

In accordance with normal commercial practice the academy has purchased insurance to protect Trustees and officers fromclaims arising from negligent acts, errors or omissions occurring whilst on academy business. The insurance provides coverup to £2,000,000 on any one claim and details of the costs are disclosed in Note 12 to the accounts.

Method of recruitment and appointment or election of Trustees

Subject to Articles 45 – 49, the Company shall have the following Directors:

• Article 45, the number of Directors shall not be less than three but (unless otherwise determined by ordinary resolution) shall not be subject to a maximum.

• Article 46, subject to Articles 48 – 49, the Company shall have the following Directors:a) Up to 4 Directors, appointed under Article 50;b) The Executive Headteacher;c) The chair of the Local Governing Body of Ralph Sadleir School;d) The two vice-chairs of the Local Governing Body of Ralph Sadleir School;e) A minimum of 2 Parent Directors if appointed under Articles 53-56A

Policies and Procedures adopted for the induction and training of Trustees

The training and induction of new Trustees will depend on their existing experience. Where necessary, induction willinclude training on educational, legal, personnel, health, safety and financial matters. All new Trustees will be given theopportunity of a tour of Ralph Sadleir School, have the chance to meet with staff and pupils and provided with copies of keydocuments, such as policies, procedures, accounts, budgets, plans and other documents they need to undertake their roleas Trustee. As there is expected to be minimum changes to personnel on the Board of Directors each year, induction willbe carried out informally and will be tailored specifically to the individual.

Ralph Sadleir School has agreed a Trustees Induction Policy and all Directors and Trustees will be given a copy of thisdocument. We subscribe to Hertfordshire Governance which gives all Directors and Trustees access to extensive face toface and online training.

Organisational Structure

The governance of the academy is defined in the Memorandum and Articles of Association together with the fundingagreement with the Department of Education.

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TRUSTEES' REPORT (continued)FOR THE PERIOD ENDED 31 AUGUST 2014

A cohesive management structure has been put in place and this will support the way the Academy Trust is run. Thestructure consists of five levels: the Board of Directors, the Local Governing Body, sub committees and the SeniorLeadership Team. The aim of the management structure is to entrust responsibility and encourage involvement is decisionmaking at all levels. A Company Secretary has been appointed to ensure probity in decisions around the constitution andpowers of Boards and governing bodies.

The Board of Directors, which meets on at least three occasions per year, is responsible for the strategic direction of theAcademy Trust. The Board of Directors reviews progress towards educational objectives and results. They also approvemajor expenditure requests, sign off the company’s financial accounts and annual report, set the organisational staffingstructure, agree the performance objectives of the Headteacher with the School Improvement Consultant, review them andthey have the power to amend the Articles of the company.

The Local Governing Body, which meets on at least four occasions per year, is responsible for reviewing the day-to-daymanagement and operation of the Academy Trust. The Local Governing Body ensures the quality of education provision,challenges and monitors performance of the Academy, reviews the Academy Trust’s finance and property, ensures that theAcademy Trust complies with charity and company law and ensures the Academy operates in accordance with the FundingAgreement. Some of these responsibilities are delegated to sub committees: Curriculum and Achievement Committee,Resources and Audit Committee and Personnel Committee.

The Board of Directors have devolved the responsibility for day to day management of the Academy Trust to theHeadteacher. They are the designated Accounting Officer of the Academy Trust and have overall day to day responsibilityfor the financial management of the Charitable Company. The Headteacher delegates responsibility to the SeniorLeadership Team (SLT).

The Senior Leadership Team meets frequently to discuss emerging matters and to help to develop strategies for futuredevelopment to be put to the Headteacher and the Governing Body as required for approval. Each member of the SeniorLeadership Team has specific responsibilities to assist the Headteacher to manage certain aspects of the academy.

Connected Organisations and Related Parties

Owing to the nature of the academy's operations and the composition of the Board of Directors being drawn from localpublic and private sector organisations, transactions may take place with organisations in which a Trustee has an interest.All transactions involving such organisations are conducted at arm's length and in accordance with the academy's financialregulations and normal procurement procedures. Trustees at Ralph Sadleir School do not provide additional servicesoutside their remit of a school Trustee. All services are procured through a transparent process to ensure probity and valuefor money. Sufficient controls are in place to monitor and prevent conflicts of interest from occurring.

Ralph Sadleir School is part of the Rib Valley pyramid of schools. Working in partnership with the other schools in thepyramid enables us to offer a quality of education from the age of four to eighteen that is rarely seen in the state educationsystem.

Ralph Sadleir School also has close links with the Standon Parish Council; then further ensures that the academy isintegrated effectively into the local community.

The Academy Trust has further links to the following organisations:

• Educational partnerships:• Hertfordshire Middle Schools• Hertfordshire Secondary Schools• National Middle Schools• North East Herts School Sport Partnership• Bishop's Stortford and District School Sports Association

• Catalyst: Bishop's Stortford Teaching School Alliance

• Charities:• KhandelLight

OBJECTIVES AND ACTIVITIES

Objects and Aims

The principal object and aim of the Charitable Company is the operation of Ralph Sadleir School to provide free educationand care for pupils of different abilities between the ages of 9 to 13.

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Strategies and Activities

During the year the school has worked towards achieving these aims by:

• ensuring that every child enjoys the same high quality education in terms of resourcing, tuition and care;• raising the standard of educational achievement of all pupils;• improving the effectiveness of the academy by keeping the curriculum and organisational structure under continual

review;• providing value for money for the funds expended;• complying with all appropriate statutory and curriculum requirements;• conducting the academy’s business in accordance with the highest standards of integrity

At Ralph Sadleir School we aim to get the best for, and from, each child. We intend to enable each child to realise his or herfull academic, creative and physical potential and to develop positive social and moral values.

Public Benefit

The Trustees confirm that they have complied with the duty contained in the Charities Act 2011 to have due regard to theCharity Commission’s general guidance on public benefit in exercising their powers or duties, They have referred to thisguidance when reviewing the academy’s aims and objectives and in planning its future activities.

The Academy provides facilities for recreational and other leisure time activities for the community. Ralph Sadleir Schoolhas links with a local youth football club who utilise the school grounds in the evening and at weekends.

Achievements and Performance

KS2 results from 2014 shows an overall APS improvement from 2013 for all aspects, the All subjects APS rising from 28.7to 29.5 (compared to National APS of 28.7). The greatest increases were 1.1 for Writing, 1.7 for GPS and 0.54 for Readingand Maths. KS3 results in 2014 continued to show improvement compared to National Middle Schools data. (English APS0.9 above NMS, Maths APS 2.4 above NMS, Science APS 3.5 above NMS.

Sport continued to be a focus of the school with even greater success being achieved across a range of sports particularlyby our Year 6 and 8 pupils.

Further development of the wider curriculum in 2013-14 ensured that Spiritual, Moral, Social and Cultural Development(SMSC) continued to reflect changes in society and future expectations of pupils. The key changes included the retiming ofthe Year 6 residential week, the refocus of the Student Council as "Student Voice", the introduction of the "Year 8 EnterpriseInitiative" and the choir performing along with other Hertfordshire schools at the Royal Albert Hall. Other familiar activitiescontinued through the year including fundraising for charities supporting education in India and Africa.

Key Performance Indicators

As a new organisation, the Trust is in the process of developing its key performance measurement targets. The KPIs coverboth financial and non-financial targets. The financial KPIs which are currently being incorporated into the performancemanagement of the Trust

The Trustees receive regular information to enable them to monitor the performance of the School and to compare aims,strategies and financial budgets. The main financial performance indicators are:

• Monitoring of staff related costs as a percentage of GAG income; for 2013/14, this was 89.63%. As a percentage of total income this was 70.11%.

• Pupil numbers linked to pupil led funding; for 2013 this was 326 and for 2014 this was 327.• Monitoring of performance against budget and explanations of any significant variances.• Current reserves and contingencies by forecasting year end position.• Monitoring of cash reserves by monthly profiling of budget.

Financial Review

The principal source of funding for the Trust is the General Annual Grant (GAG) and other grants that it receives from theEFA. For the year ended 31 August 2014 the Trust received £1,327,123 of GAG and other funding received was £143,196.A high percentage of this income is spent on wages and salaries and support costs to deliver the Academy’s primaryobjective of the provision of education. During the year the Academy Trust spent all of its restricted funds but has generateda surplus of £73,464 from its unrestricted funds and is carrying this forward as an unrestricted reserve.

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Most of the Academy’s income is obtained from the Department of Education (DFE) via the Education Funding Agency(EFA) in the form of monthly grants, the use of which is restricted to particular purposes. The grants received from the EFAduring the year ended 31st August 2014 and the associated expenditure are shown as Restricted Funds in the Statement ofFinancial Activities.

The aim for financial year to 31st August 2014 was a higher level of educational provision, whilst sustaining a cash balanceto provide for the day-to-day working requirements of the school. The aim was for the accrual of surplus balances tosupport the School’s short term aims to complete capital projects in line with the Academy Improvement Plan whilst noteffecting medium term stability. The school secured further capital funding through Academy Capital and MaintenanceFunding which resulted in the completion of replacement window walling and a new roof to two mobile classrooms.

Key financial policies adopted and reviewed during the year include Accounting Policies and Schedule of FinancialDelegation which lays out the framework for financial management, including financial responsibilities for the Board ofDirectors, Resources & Audit Committee, Headteacher (Accounting Officer), Academy Business Manager, budget holdersand other staff, as well as delegated responsibility for spending.

The Directors have appointed an Internal Auditor from Essex County Council to undertake a programme of internal checkson financial controls and governance.

Reserves Policy

The Trustees are aware or the requirement to balance current and future needs. The Trustees always aim to set abalanced budget with annual income balancing annual expenditure.

The Academy’s current level of free reserves (total funds less the amount held in fixed assets and restricted funds) is£73,464. This has been built up from a mixture of locally raised income and balances transferred from the predecessorschool.

The school will continue to build upon this free reserve to assist capital projects in 2014/15; window walling replacement,roof replacement, refurbishment of sports area and playground linked to health and safety, and fire safety.

The cash balance of the Academy has been very healthy all year, ending the year with a balance of £154,810. The Trusteeshave determined that they should hold a cash contingency equivalent to two weeks’ expenditure, approximately £31,642.

Due to the accounting rules for the Local Government Pension Scheme under FRS17, the Academy is recognising asignificant pension fund deficit of £247,000. This does not mean that an immediate liability for this amount crystallises andthat such a deficit generally results in a cash flow effect in the form of increased employer contributions over a number ofyears.

Going concern

After making appropriate enquiries, the Board of Directors has a reasonable expectation that the Academy Trust hasadequate resources to continue in operational existence for the foreseeable future. For this reason it continues to adopt thegoing concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basiscan be found in the Statement of Accounting Policies.

Investment Policy

An Investment Policy was approved by the Resources & Audit Committee on 3rd October 2014.

The aim of the policy is to ensure funds that the academy does not immediately need to cover anticipated expenditure areinvested in such a way as to maximise the academy’s income but with minimal risk. The aim is to research where funds maybe deposited applying prudency in ensuring there is minimum risk. The academy does not consider the investment ofsurplus funds as a primary activity, rather as a result of good stewardship and as and when circumstances allow.

PRINCIPAL RISKS AND UNCERTAINTIES

The Trustees maintain a risk register identifying the major risks to which the Academy is exposed, and identifying actionsand procedures to mitigate those risks. A formal review of the risk management process is undertaken on an annual basisand the internal control systems and the exposure to said risks are monitored on behalf of the Trustees at each Resources& Audit Committee meeting. The principal risks facing the Trust are outlined below; those facing the Academy at anoperational level are addressed by its systems and by internal financial and other controls.

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The Trustees report that the Trust’s financial and internal controls conform to guidelines issued by the EFA, and thatimprovements to the wider framework of systems dealing with business risk and risk management strategy continue to bemade and formally documented.

It is recognised that systems can only provide reasonable but not absolute assurance that major risks have beenadequately managed.

As an academy school, the level of financial risk is low. Cash flows can be reliably forecast, monitored and reported. Staffcosts make up the majority of expenditure and this is relatively stable with contingencies in place to cover such items assickness and maternity.

The Trustees assess the other principal risks and uncertainties facing the Trust as follows:

• The academy has considerable reliance on continued Government funding through the EFA and there is no assurance that Government policy or practice will remain the same or that public funding will continue at the same levels or on the same terms.

• Failures in governance and/or management - the risk in this area arises from potential failure to effectively manage the academy's finances, internal controls, compliance with regulations and legislation, statutory returns, etc. The Trustees continue to review and ensure that appropriate measures are in place to mitigate these risks.

• Reputational - the continuing success of the academy is dependent on continuing to attract high quality applicants in sufficient numbers by maintaining the highest educational standards and ensuring these high standards are recognised by and communicated to the wider community. To mitigate this risk Trustees ensure that student success and achievement are closely monitored and reviewed.

• Safeguarding and child protection - the Trustees continue to ensure that the highest standards are maintained in the areas of selection and monitoring of staff, the operation of child protection policies and procedures, health & safety and discipline.

• Staffing - the success of the academy is reliant on having sufficient resources to function effectively and the subsequent quality of its staff. The Trustees monitor and review policies and procedures to ensure continued development and training of staff as well as ensuring there is clear succession planning.

• Fraud and mismanagement of funds - The academy has appointed a Responsible Officer/External Auditor to carry out checks on financial systems and records as required by the Academy Financial Handbook. All finance staff receive training to keep them up to date with financial practice requirements and develop their skills in this area.

The academy has continued to strengthen its risk management process throughout the year by improving the process andensuring staff awareness.

PLANS FOR FUTURE PERIODS

The Academy Trusts objectives are to continue to improve the achievements at both KS2 and KS3 whilst enhancing theoverall learning experience of all pupils and to meet the aspirations of achieving an "oustanding" Ofsted rating.

To achieve these objectives there will be a continued focus on improvement of teaching and differentiation of learningactivities to ensure all pupils achieve to their ability whilst continuing the initiatives associated with behaviour and safety.

The introduction of changes to the curriculum to meet national expectations of timing in conjunction with our partner schoolsin the Rib Valley will be undertaken along with new systems for tracking and reporting pupil performance internally and toparents.

2014-15 will see the appointment of a new Head Teacher on the retirement of Liz Hinton in April 2015 and a subsequentreview of the SLT and middle managers as further development of the Academy directors and Trustees involvement inmanaging the school and setting the strategic Direction of the Academy Trust.

FUNDS HELD AS CUSTODIAN TRUSTEE ON BEHALF OF OTHERS

None.

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PROVISION OF INFORMATION TO AUDITORS

Insofar as the Trustee are aware:

• there is no relevant audit information of which the charitable company’s auditors are unaware, and• the Trustees have taken all the 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 auditors, Price Bailey LLP, are willing to continue in office and a resolution to appoint them will be proposed at theannual general meeting.

This report, incorporating the Strategic Report, was approved by order of the board of Trustees, as the company directors,on 11 December 2014 and signed on the board's behalf by:

G SmithChair of Trustees

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GOVERNANCE STATEMENT

SCOPE OF RESPONSIBILITY

As Trustees, we acknowledge we have overall responsibility for ensuring that Ralph Sadleir School has an effective andappropriate system of control, financial and otherwise. However such a system is designed to manage rather than eliminatethe risk of failure to achieve business objectives, and can provide only reasonable and not absolute assurance againstmaterial misstatement or loss.

The board of Trustees has delegated the day-to-day responsibility to the Headteacher, as Accounting Officer, for ensuringfinancial controls conform with the requirements of both propriety and good financial management and in accordance withthe requirements and responsibilities assigned to it in the funding agreement between Ralph Sadleir School and theSecretary of State for Education. They are also responsible for reporting to the board of Trustees any material weaknessesor breakdowns in internal control.

GOVERNANCE

The information on governance included here supplements that described in the Trustees' Report and in the Trustees'Responsibilities Statement. The board of Trustees has formally met 5 times during the period. Attendance during the periodat meetings of the board of Trustees was as follows:

Meetings attended Out of a possible

G Smith, Chair 5 5L Catanach 2 5T Shambrook 1 5J Tye 5 5R Emes 4 5S Nicolson 3 5E M Hinton, Head Teacher 5 5R Brown 5 5

Governance reviews:

During the year there was no review of governance, however the Governing Body will perform a self assessment review ofeffectiveness on 11 December 2014.

The Resources Committee is a sub-committee of the main board of Trustees. Its purpose is to monitor the financial situationof the Trust and deal with routine financial matters.

Attendance at meetings in the period was as follows:


G Smith 1 1J Tye 2 3R Emes 3 3S Nicolson 0 1E M Hinton 3 3S Bunyan 0 1C Hallett 0 1B Palmen 0 1P White 1 2B Aylett 2 2

The Audit Committee is also a sub-committee of the main board of Trustees. Its purpose is to oversee the Academy'sfinancial matters, Risk Management, Internal Audit function and any matters relating to the Statutory Audit.

Attendance at meetings in the period was as follows:


G Smith 2 2J Tye 1 2R Emes 1 2P White 0 1C Hallett 1 1

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GOVERNANCE STATEMENT (continued)

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 toachieve 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 theachievement of academy policies, aims and objectives, to evaluate the likelihood of those risks being realised and theimpact should they be realised, and to manage them efficiently, effectively and economically. The system of internal controlhas been in place in Ralph Sadleir School for the period 1 October 2013 to 31 August 2014 and up to the date of approvalof 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, financialand compliance controls that have been implemented to mitigate those risks. The board of Trustees is of the view that thereis a formal ongoing process for identifying, evaluating and managing the academy's significant risks, that has been in placefor the period 1 October 2013 to 31 August 2014 and up to the date of approval of the annual report and financialstatements. This process is regularly reviewed by the board of Trustees.

THE RISK AND CONTROL FRAMEWORK

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

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 Resources Committee of reports which indicate financial performance against the forecasts

and of major purchase plans, capital works and expenditure programmes;

setting targets to measure financial and other performance;

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

delegation of authority and segregation of duties;

identification and management of risks.

The board of Trustees has considered the need for a specific internal audit function and has decided to appoint EssexCounty Council as internal auditor.

The internal auditor's role includes giving advice on financial matters and performing a range of checks on the academy'sfinancial systems. On a termly 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.

Essex County Council delivered their schedule of works as planned and no material control issues were identified.

REVIEW OF EFFECTIVENESS

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

the work of the internal auditor;

the work of the external auditors;

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 bythe Resources Committee and a plan to address weaknesses and ensure continuous improvement of the system is inplace.

Approved by order of the members of the board of Trustees on 11 December 2014 and signed on its behalf, by:

G SmithChair

E M HintonAccounting Officer

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STATEMENT ON REGULARITY, PROPRIETY AND COMPLIANCE

As Accounting Officer of Ralph Sadleir School I have considered my responsibility to notify the academy board of Trusteesand the Education Funding Agency of material irregularity, impropriety and non-compliance with EFA terms and conditionsof funding, under the funding agreement in place between the academy and the Secretary of State. As part of myconsideration I have had due regard to the requirements of the Academies Financial Handbook .

I confirm that I and the academy board of Trustees are able to identify any material, irregular or improper use of funds bythe academy, or material non-compliance with the terms and conditions of funding under the academy's funding agreementand the Academies Financial Handbook .

I confirm that no instances of material irregularity, impropriety or funding non-compliance have been discovered to date. Ifany instances are identified after the date of this statement, these will be notified to the board of Trustees and EFA.

E M HintonAccounting Officer

Date: 11 December 2014

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TRUSTEES' RESPONSIBILITIES STATEMENTFOR THE PERIOD ENDED 31 AUGUST 2014

The Trustees (who act as Trustees of Ralph Sadleir School and are also the directors of the charitable company for thepurposes of company law) are responsible for preparing theTrustees' Report (including the Strategic Report) and thefinancial statements in accordance with the Annual Accounts Direction issued by the Education Funding Agency, UnitedKingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law andregulations.

Company law requires the Trustees to prepare financial statements for each financial year. Under company law theTrustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the stateof affairs of the charitable company and of its incoming resources and application of resources, including its income andexpenditure, for that period. In preparing these financial statements, the Trustees 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;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the

charitable company will continue in business.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain thecharitable company's transactions and disclose with reasonable accuracy at any time the financial position of thecharitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. Theyare also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for theprevention and detection of fraud and other irregularities.

The Trustees are responsible for ensuring that in its conduct and operation the charitable company applies financial andother controls, which conform with the requirements both of propriety and of good financial management. They are alsoresponsible for ensuring grants received from EFA/DfE have been applied for the purposes intended.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on thecharitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financialstatements may differ from legislation in other jurisdictions.

Approved by order of the members of the board of Trustees on 11 December 2014 and signed on its behalf by:

G SmithChair

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INDEPENDENT AUDITORS' REPORT TO THE BOARD OF TRUSTEES OF RALPH SADLEIR SCHOOL

We have audited the financial statements of Ralph Sadleir School for the period ended 31 August 2014 which comprise theStatement of Financial Activities, the Balance Sheet, the Cash Flow Statement and the related notes. The financial reportingframework that has been applied in their preparation is applicable law, United Kingdom Accounting Standards (UnitedKingdom Generally Accepted Accounting Practice) and the Academies Accounts Direction 2013 to 2014 issued by theEducation Funding Agency.

This report is made solely to the academy's members, as a body, in accordance with Chapter 3 of Part 16 of the CompaniesAct 2006. Our audit work has been undertaken so that we might state to the academy's members those matters we arerequired to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do notaccept or assume responsibility to anyone other than the academy and its members, as a body, for our audit work, for thisreport, or for the opinion we have formed.

RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND AUDITORS

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

Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law andInternational Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing PracticesBoard'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 to givereasonable 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 havebeen consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by theTrustees; and the overall presentation of the financial statements. In addition, we read all the financial and non-financialinformation in the Trustees' Report to identify material inconsistencies with the audited financial statements and to identifyany information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired byus in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies weconsider 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 2014 and of its incoming resources and

application of resources, including its income and expenditure, for the period then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006 and the Academies Accounts

Direction 2013 to 2014 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 financial period forwhich the financial statements are prepared is consistent with the financial statements.

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INDEPENDENT AUDITORS' REPORT TO THE BOARD OF TRUSTEES OF RALPH SADLEIR 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 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 Trustees' remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit.

Gary Miller (Senior Statutory Auditor)

for and behalf of

Price Bailey LLP

Chartered AccountantsStatutory Auditors Causeway House1 Dane StreetBishop's StortfordHertfordshireCM23 3BT18 December 2014

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INDEPENDENT REPORTING ACCOUNTANTS' ASSURANCE REPORT ON REGULARITY TO RALPHSADLEIR SCHOOL AND THE EDUCATION FUNDING AGENCY

In accordance with the terms of our engagement letter dated 7 October 2014 and further to the requirements of theEducation Funding Agency (EFA) as included in the Academies Accounts Direction 2013 to 2014, we have carried out anengagement to obtain limited assurance about whether the expenditure disbursed and income received by Ralph SadleirSchool during the period 1 October 2013 to 31 August 2014 have been applied to the purposes identified by Parliament andthe financial transactions conform to the authorities which govern them.

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

RESPECTIVE RESPONSIBILITIES OF RALPH SADLEIR SCHOOL'S ACCOUNTING OFFICER AND THE REPORTINGACCOUNTANT

The accounting officer is responsible, under the requirements of Ralph Sadleir School's funding agreement with theSecretary of State for Education dated 1 October 2013, and the Academies Financial Handbook extant from 1 September2013, for ensuring that expenditure disbursed and income received is applied for the purposes intended by Parliament andthe 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 areto obtain limited assurance and report in accordance with our engagement letter and the requirements of the AcademiesAccounts Direction 2013 to 2014. We report to you whether anything has come to our attention in carrying out our workwhich suggests that in all material respects, expenditure disbursed and income received during the period 1 October 2013to 31 August 2014 have not been applied to purposes intended by Parliament or that the financial transactions do notconform to the authorities which govern them.

APPROACH

We conducted our engagement in accordance with the Academies Accounts Direction 2013 to 2014 issued by EFA. Weperformed 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 explanationsin 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 consequentlydoes not enable us to obtain assurance that we would become aware of all significant matters that might be identified in areasonable 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'sincome and expenditure.

The work undertaken to draw to our conclusion includes:

• Consideration and corroboration of the evidence supporting the accounting officers’ statement on regularity, propriety and compliance.

• Evaluation of the general control environment of the academy trust, extending the procedures required for financial statements to include regularity.

• Discussions with and representations from the Accounting Officer and other Key management personnel.

• An extension of substantive testing from our audit of the financial statements to cover matters pertaining to regularity, propriety and compliance in particular checking that selected items were appropriately authorised, and appropriate.

Page 14



INDEPENDENT REPORTING ACCOUNTANTS' ASSURANCE REPORT ON REGULARITY TO RALPHSADLEIR SCHOOL AND THE EDUCATION FUNDING AGENCY (continued)

CONCLUSION

In the course of our work, nothing has come to our attention which suggests that in all material respects the expendituredisbursed and income received during the period 1 October 2013 to 31 August 2014 have not been applied to purposesintended by Parliament and the financial transactions do not conform to the authorities which govern them.

Gary Miller (Reporting Accountant)

Price Bailey LLP

Chartered Accountants

18 December 2014

Page 15



STATEMENT OF FINANCIAL ACTIVITIES(Incorporating Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

FOR THE PERIOD ENDED 31 AUGUST 2014

Unrestrictedfunds

Restrictedfunds

Restrictedfixed asset

fundsTotalfunds

Note2014

£2014

£2014

£2014

£

INCOMING RESOURCES

Incoming resources from generated funds: Assets transferred on conversion to academy 2 70,683 (193,000) 5,589,429 5,467,112 Other voluntary income 2 48,254 56,736 - 104,990 Activities for generating funds 3 94,377 25,833 - 120,210 Investment income 4 617 - - 617Incoming resources from charitable activities 5 - 1,400,224 99,129 1,499,353

TOTAL INCOMING RESOURCES 213,931 1,289,793 5,688,558 7,192,282

RESOURCES EXPENDED

Charitable activities 7 140,467 1,478,776 121,886 1,741,129Governance costs 8 - 13,017 - 13,017

TOTAL RESOURCES EXPENDED 6 140,467 1,491,793 121,886 1,754,146

NET INCOMING / (OUTGOING) RESOURCESBEFORE REVALUATIONS 73,464 (202,000) 5,566,672 5,438,136

Actuarial gains and losses on defined benefitpension schemes - (45,000) - (45,000)

NET MOVEMENT IN FUNDS FOR THE PERIOD 73,464 (247,000) 5,566,672 5,393,136

Total funds at 1 October 2013 - - - -

TOTAL FUNDS AT 31 AUGUST 2014 73,464 (247,000) 5,566,672 5,393,136

All activities relate to continuing operations.

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

The notes on pages 19 to 35 form part of these financial statements.

Page 16


(A Company Limited by Guarantee)REGISTERED NUMBER: 8663956

BALANCE SHEETAS AT 31 AUGUST 2014

2014Note £ £

FIXED ASSETS

Tangible assets 13 5,566,672

CURRENT ASSETS

Debtors 14 119,264

Cash at bank 110,563

229,827

CREDITORS: amounts falling due within one year 15 (156,363)

NET CURRENT ASSETS 73,464

TOTAL ASSETS LESS CURRENT LIABILITIES 5,640,136

Defined benefit pension scheme liability 22 (247,000)

NET ASSETS INCLUDING PENSION SCHEME LIABILITY 5,393,136

FUNDS OF THE ACADEMY

Restricted funds :

Restricted fixed asset funds 5,566,672

Pension reserve (247,000)

Total restricted funds 5,319,672

Unrestricted funds 16 73,464

TOTAL FUNDS 5,393,136

The financial statements were approved by the Trustees, and authorised for issue, on 11 December2014 and are signed on their behalf, by:

G SmithChair of Trustees


Page 17



CASH FLOW STATEMENTFOR THE PERIOD ENDED 31 AUGUST 2014

2014Note £

Net cash flow from operating activities 18 44,676

Returns on investments and servicing of finance 19 617

Capital expenditure and financial investment 19 (5,413)

Cash transferred on conversion to an academy trust 21 70,683

INCREASE IN CASH IN THE PERIOD 110,563

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

2014 £

Increase in cash in the period 110,563

MOVEMENT IN NET FUNDS IN THE PERIOD 110,563

NET FUNDS AT 31 AUGUST 2014 110,563


Page 18



NOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD ENDED 31 AUGUST 2014

1. ACCOUNTING POLICIES

1.1 Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention. The financial statementshave been prepared in accordance with the Statement of Recommended Practice (SORP), 'Accounting andReporting by Charities' published in March 2005, the Academies Accounts Direction 2013 to 2014 issued byEFA, applicable accounting standards and the Companies Act 2006.

1.2 Fund accounting

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

Restricted fixed asset funds are resources which are to be applied to specific capital purposes imposed byfunders 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 the Departmentfor Education.

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 has entitlementto the funds, certainty of receipt and the amount can be measured with sufficient reliability.

Grants are included in the Statement of Financial Activities on a receivable basis. The balance of incomereceived for specific purposes but not expended during the period is shown in the relevant funds on theBalance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred andincluded in creditors as deferred income. Where entitlement occurs before income is received, the income isaccrued.

General Annual Grant is recognised in full in the year for which it is receivable and any unspent amount isreflected 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 theyare expended. Unspent amounts of capital grant are reflected in the balance in the restricted fixed asset fund.

Any donated services and gifts in kind provided to the academy are recognised at their open market value inthe period in which they are receivable as incoming resources, where the benefit to the academy can bereliably measured. An equivalent amount is included as expenditure under the relevant heading in theStatement of Financial Activities, except where the gift in kind was a fixed asset in which case the amount isincluded in the appropriate fixed asset category and depreciated over the useful economic life in accordancewith the academy's policies.

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

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

Page 19




1. ACCOUNTING POLICIES (continued)

1.4 Resources expended

Expenditure is recognised in the period in which a liability is incurred and has been classified under headingsthat aggregate all costs related to that category. Where costs cannot be directly attributed to particularheadings they have been allocated on a basis consistent with the use of resources, with central staff costsallocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use.Other support costs are allocated based on the spread of staff costs.

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

Governance costs include the costs attributable to the academy's compliance with constitutional and statutoryrequirements, including audit, strategic management and Trustees' meetings and reimbursed 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 any materialuncertainties related to events or conditions that may cast significant doubt on the ability of the academy tocontinue as a going concern. The Trustees make this assessment in respect of a period of one year from thedate of approval of the financial statements.

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 the government orfrom the private sector, they are included in the Balance Sheet at cost and depreciated over their expecteduseful economic life. The related grants are credited to a restricted fixed asset fund in the Statement ofFinancial Activities and are carried forward in the Balance Sheet. Depreciation on such assets is charged tothe restricted fixed asset fund in the Statement of Financial Activities so as to reduce the fund over the usefuleconomic life of the related asset on a basis consistent with the academy's depreciation policy. Wheretangible fixed assets have been acquired with unrestricted funds, depreciation on such assets is charged tothe unrestricted fund.

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to writeoff the cost of fixed assets, over their expected useful lives on the following bases:

Leasehold land - 125 years straight lineLeasehold buildings - 50 years straight lineFixtures and fittings - 10 years straight lineComputer equipment - 5 years straight line

1.7 Operating leases

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

1.8 Taxation

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

Page 20




1. ACCOUNTING POLICIES (continued)

1.9 Pensions

Retirement benefits to employees of the academy are provided by the Teachers' Pension Scheme ("TPS") andthe Local Government Pension Scheme ("LGPS"). These are defined benefit schemes and the assets are heldseparately from those of the academy.

The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions overemployees' working lives with the academy in such a way that the pension cost is a substantially levelpercentage of current and future pensionable payroll. The contributions are determined by the GovernmentActuary on the basis of quinquennial valuations using a prospective benefit method. As stated in note 22, theTPS is a multi-employer scheme and the academy is unable to identify its share of the underlying assets andliabilities of the scheme on a consistent and reasonable basis. The TPS is therefore treated as a definedcontribution 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 separatetrustee administered funds. Pension scheme assets are measured at fair value and liabilities are measured onan actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate ofreturn on a high quality corporate bond of equivalent term and currency to the liabilities. The actuarialvaluations are obtained at least triennially and are updated at each balance sheet date. The amounts chargedto operating surplus are the current service costs and gains and losses on settlements and curtailments. Theyare included as part of staff costs. Past service costs are recognised immediately in the Statement of FinancialActivities if the benefits have vested. If the benefits have not vested immediately, the costs are recognisedover the period until vesting occurs. The expected return on assets and the interest cost are shown as aFRS17 LGPS adjustment in Note 7. Actuarial gains and losses are recognised immediately in other gains andlosses.

1.10 Conversion to an academy trust

The conversion from a state maintained school to an academy trust involved the transfer of identifiable assetsand liabilities and the operation of the school for £NIL consideration and has been accounted for under theacquisition accounting method.

The assets and liabilities transferred on conversion from Ralph Sadleir School to an academy trust have beenvalued at their fair value, being a reasonable estimate of the current market value that the Trustees wouldexpect to pay in an open market for an equivalent item. Their fair value is in accordance with the accountingpolicies set out for Ralph Sadleir School. The amounts have been recognised under the appropriate balancesheet categories, with a corresponding amount recognised in the Statement of Financial Activities andanalysed under unrestricted funds, restricted general funds and restricted fixed asset funds.

Further details of the transaction are set out in note 21.

2. VOLUNTARY INCOME

Unrestrictedfunds

Restrictedfunds

Totalfunds

2014£

2014£

2014£

Assets transferred on conversion to academy 70,683 5,396,429 5,467,112

Donations 48,254 56,736 104,990

Voluntary income 118,937 5,453,165 5,572,102

Page 21




3. ACTIVITIES FOR GENERATING FUNDS

Unrestrictedfunds

Restrictedfunds

Totalfunds

2014£

2014£

2014£

Letting Income 50 - 50Music Income - 24,059 24,059Catering Income 89,438 - 89,438Other Income 4,889 1,774 6,663

94,377 25,833 120,210

4. INVESTMENT INCOME

Unrestrictedfunds

Totalfunds

2014£

2014£

Investment income 617 617

5. FUNDING FOR ACADEMY'S EDUCATIONAL OPERATIONS

Unrestrictedfunds

Restrictedfunds

Totalfunds

2014£

2014£

2014£

DfE/EFA grants

General Annual Grant (GAG) - 1,332,120 1,332,120Other DfE / EFA grants - 52,213 52,213Capital Grants - 99,129 99,129

- 1,483,462 1,483,462

Other government grants

Local authority grants - 15,891 15,891

- 15,891 15,891

Other funding

- - -

- 1,499,353 1,499,353

Page 22




6. RESOURCES EXPENDED

Staff costs Non Pay Expenditure TotalPremises Other costs

2014£

2014£

2014£

2014£

Provision of Education 875,371 - 214,802 1,090,173Support costs - Provision of Education 316,190 188,420 146,346 650,956

Charitable activities 1,191,561 188,420 361,148 1,741,129

Governance - - 13,017 13,017

1,191,561 188,420 374,165 1,754,146

Page 23




7. CHARITABLE ACTIVITIES

Totalfunds2014

£DIRECT COSTS - EDUCATIONAL OPERATIONS

Wages and salaries 705,760National insurance 62,105Pension cost 107,506Educational supplies 78,061Educational consultancy 1,560Other costs 1,200Catering 92,681Supply costs 41,300

1,090,173

SUPPORT COSTS - EDUCATIONAL OPERATIONS

Wages and salaries 270,029National insurance 10,500Pension cost 35,661Depreciation 84,944FRS17 LGPS adjustment 7,000Staff development 3,217Technology costs 55,597Travel and subsistence 978Other costs 48,919Recruitment and support 1,023Maintenance and support 30,826Cleaning 3,436Rates 26,141Energy 17,556Insurance 19,176Security 5,677Catering 474Occupancy costs 5,483Bank interest and charges 1,354Legal fees 5,619Telephone costs 1,818Printing, postage and stationery 15,528

650,956

1,741,129

Page 24




8. GOVERNANCE COSTS

Restrictedfunds

Totalfunds

2014£

2014£

Internal audit costs 1,100 1,100Auditors' remuneration 4,500 4,500Auditors' non audit costs 6,128 6,128Governor training and development 1,289 1,289

13,017 13,017

9. NET INCOMING / (OUTGOING) RESOURCES

This is stated after charging:

2014 £

Depreciation of tangible fixed assets:- owned by the charity 84,944

Auditors' remuneration 4,500Internal audit costs 1,100Operating lease rentals:

- other operating leases 17,691

10. STAFF

a. Staff costs

Staff costs were as follows:

2014 £

Wages and salaries 975,789Social security costs 72,605Pension costs (Note 22) 143,166

1,191,560Supply teacher costs 41,300

1,232,860

b. Staff numbers

The average number of persons employed by the academy during the period expressed as full time equivalents wasas follows:

2014 No.

Teachers 18Administration 19Management 2

39

Page 25




10. STAFF (continued)

c. Higher paid staff

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

2014 No.

In the band £ 60,001 - £ 70,000 1

The employee also participated in the Teacher's Pension Scheme. During the 11 months ended 31 August 2014,pension contributions for these staff amounted to £10,593.

11. TRUSTEES' REMUNERATION AND EXPENSES

The Headteacher and other staff Trustees only receive remuneration in respect of services they provide undertakingthe roles of Headteacher and staff, and not in respect of their services as Trustees. Other Trustees did not receiveany payments, other than expenses, from the academy in respect of their role as Trustees. The value of Trustees'remuneration, including pension contributions, fell within the following bands:

2014 £

E M Hinton 70,000-75,000R Brown 40,000-45,000

During the period, no Trustees received any reimbursement of expenses.

12. TRUSTEES' AND OFFICERS' INSURANCE

In accordance with normal commercial practice the academy has purchased insurance to protect Trustees andofficers from claims arising from negligent acts, errors or omissions occurring whilst on academy business. Theinsurance provides cover up to £2,000,000 on any one claim and the cost for the period ended 31 August 2014 wasincluded in the total insurance cost.

Page 26




13. TANGIBLE FIXED ASSETS

Long termLeasehold

PropertyFixtures and

fittingsComputer

equipment Total£ £ £ £

Cost

Additions 57,017 1,103 4,067 62,187Assets donated on conversion 5,533,363 36,275 19,791 5,589,429

At 31 August 2014 5,590,380 37,378 23,858 5,651,616

Depreciation

Charge for the period 75,343 4,491 5,110 84,944

At 31 August 2014 75,343 4,491 5,110 84,944

Net book value

At 31 August 2014 5,515,037 32,887 18,748 5,566,672

The land and buildings donated on conversion have been included in the accounts based on the valuation arrangedby the EFA and provided by Mouchel using depreciated replacement cost. The Trustees believe the cost of obtaininga more detailed valuation outweighs the benefit.

14. DEBTORS

2014 £

Trade debtors 11,725Other debtors 33,376Prepayments and accrued income 74,163

119,264

15. CREDITORS:Amounts falling due within one year

2014 £

Trade creditors 59,004Other taxation and social security 21,766Other creditors 20,016Accruals and deferred income 55,577

156,363

£Deferred income

Resources deferred during the year 41,275

Page 27




16. STATEMENT OF FUNDS

BroughtForward

Incomingresources

ResourcesExpended

Transfersin/out

Gains/(Losses)

CarriedForward

£ £ £ £ £ £

Unrestricted funds

Unrestricted funds - 213,931 (140,467) - - 73,464

Restricted funds

General AnnualGrant (GAG) - 1,332,120 (1,332,120) - - -

Other DfE/EFA grants - 52,213 (52,213) - - -Other Government

Grants - 15,891 (15,891) - - -Restricted donations - 82,569 (82,569) - - -Pension reserve - (193,000) (9,000) - (45,000) (247,000)

- 1,289,793 (1,491,793) - (45,000) (247,000)

Restricted fixed asset funds

Assets transferred onconversion - 5,589,429 (84,944) 62,187 - 5,566,672

Devolved FormulaCapital - 27,963 (22,793) (5,170) - -

Academies CapitalMaintenance Fund(ACMF) - 71,166 (14,149) (57,017) - -

- 5,688,558 (121,886) - - 5,566,672

Total restricted funds - 6,978,351 (1,613,679) - (45,000) 5,319,672

Total of funds - 7,192,282 (1,754,146) - (45,000) 5,393,136

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

Other DfE and EFA Grants

This represents funding to be used to help raise achievement and improve outcomes for pupils from low incomefamilies who are eligible for free school meals.

Other Government Grants

This represents various small grants from local and national government bodies for the provision of specific servicesto pupils of the academy.

Restricted donations

This fund largely represents contributions made by parents to the running of educational visits for the pupils of theacademy and the associated costs of running the trips.

Pension Reserve

This fund represents the school's share of the deficit on the Local Government Pension Scheme (LGPS) transferredto the school on conversion from a state controlled school.

Page 28




16. STATEMENT OF FUNDS (continued)

Assets Transferred on Conversion

This represents the assets transferred on conversion to the Academy.

Devolved Formula Capital (DFC) Fund

The Academy is to use the DFC allocation to maintain and improve its buildings and facilities.

Academies' Capital Maintenance Fund (ACMF)

The Academy is required to use the funding for the specific project as defined within the funding agreement.

General Annual Grant (GAG)

This represents funding from the EFA to cover the costs of recurrent expenditure.

Under the funding agreement with the Secretary of State, the academy was not subject to a limit on the amount ofGAG that it could carry forward at 31 August 2014.

SUMMARY OF FUNDS

BroughtForward

Incomingresources

ResourcesExpended

Transfersin/out

Gains/(Losses)

CarriedForward

£ £ £ £ £ £

General funds - 213,931 (140,467) - - 73,464Restricted funds - 1,289,793 (1,491,793) - (45,000) (247,000)Restricted fixed asset

funds - 5,688,558 (121,886) - - 5,566,672

- 7,192,282 (1,754,146) - (45,000) 5,393,136

17. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestrictedfunds

Restrictedfunds


fundsTotalfunds

2014£

2014£

2014£

2014£

Tangible fixed assets - - 5,566,672 5,566,672Current assets 73,464 156,363 - 229,827Creditors due within one year - (156,363) - (156,363)Provisions for liabilities and charges - (247,000) - (247,000)

73,464 (247,000) 5,566,672 5,393,136

Page 29




18. NET CASH FLOW FROM OPERATING ACTIVITIES

2014£

Net incoming resources before revaluations 5,438,136Returns on investments and servicing of finance (617)Donated assets on conversion (5,589,429)Cash received on conversion (70,683)Depreciation of tangible fixed assets 84,944Increase in debtors (119,264)Increase in creditors 99,589FRS 17 adjustments 202,000

Net cash inflow from operations 44,676

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

2014 £

Returns on investments and servicing of finance

Interest received 617

2014

£

Capital expenditure and financial investment

Purchase of tangible fixed assets (5,413)

20. ANALYSIS OF CHANGES IN NET FUNDS

1 October Cash flow

Othernon-cashchanges 31 August

2013 2014£ £ £ £

Cash at bank and in hand: - 110,563 - 110,563

Net funds - 110,563 - 110,563

Page 30




21. CONVERSION TO AN ACADEMY TRUST

On 27 August 2013 Ralph Sadleir School converted to academy trust status under the Academies Act 2010 and allthe operations and assets and liabilities were transferred to Ralph Sadleir School from Hertfordshire County Councilfor £NIL consideration.

The transfer has been accounted for using the acquisition method. The assets and liabilities transferred were valuedat their fair value and recognised in the Balance Sheet under the appropriate headings with a corresponding netamount recognised as net incoming resources in the Statement of Financial Activities as voluntary income.

The following table sets out the fair values of the identifiable assets and liabilities transferred and an analysis of theirrecognition in the Statement of Financial Activities.

Unrestrictedfunds

£

Restrictedfunds

£


funds£

Totalfunds

£

Tangible fixed assets

- Freehold/leasehold land and buildings - 5,533,363 - 5,533,363 - Other tangible fixed assets - 56,066 - 56,066

Budget surplus/(deficit) on LA funds 70,683 - - 70,683LGPS pension surplus/(deficit) - (193,000) - (193,000)

Net assets/(liabilities) 70,683 5,396,429 - 5,467,112

The above net assets include £70,683 that were transferred as cash.

22. PENSION COMMITMENTS

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

The pension costs are assessed in accordance with the advice of independent qualified actuaries. The latestactuarial valuation of the TPS related to the period ended 31 March 2004 and of the LGPS 31 March 2013.

Contributions amounting to £19,770 were payable to the schemes at 31 August 2014 and are included withincreditors.

Teachers' Pension Scheme

Introduction

The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by theTeachers' Pensions Regulations (2010) and, from 1 April 2014, by the Teachers’ Pension Scheme Regulations2014. Membership is automatic for full-time teachers in academies and, from 1 January 2007, automatic for teachersin part-time employment following appointment or a change of contract, although they are able to opt out.

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

The Teachers' Pensions Regulations require an annual account to be kept of receipts and expenditure (including thecost of pensions’ increases). From 1 April 2001, the account has been credited with a real rate of return, which isequivalent to assuming that the balance in the account is invested in notional investments that produce that real rateof return.

Valuation of the Teachers’ Pension Scheme

The latest actuarial valuation of the TPS was carried out as at 31 March 2012 and in accordance with the Public

Page 31




22. PENSION COMMITMENTS (continued)

Service Pensions (Valuations and Employer Cost Cap) Directions 2014. The valuation report was published by theDepartment for Education on 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% employer administration charge (currently 14.1%);

• total scheme liabilities for service to the effective date of £191,500 million, and notional assets of £176,600 million, giving a notional past service deficit of £14,900 million; and

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

The new employer contribution rate is applicable from 1 April 2015 and will be implemented for the TPS fromSeptember 2015.

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

Teachers’ Pension Scheme Changes

Lord Hutton made recommendations in 2011 about how pensions can be made sustainable and affordable, whilstremaining fair to the workforce and the taxpayer. The Government accepted Lord Hutton’s recommendations as thebasis for consultation with trade unions and other representative bodies. In March 2012 the Department forEducation published proposals for the design for a reformed TPS.

The key provisions of the reformed scheme include: a pension based on career average earnings; an accrual rate of1/57th; and a Normal Pension Age equal to State Pension Age, but with options to enable members to retire earlieror later than their Normal Pension Age. 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 NormalPension Age on 1 April 2012 will see no change to the age at which they can retire, and no decrease in the amountof pension they receive when they retire. There will also be further transitional protection, tapered over a three and ahalf year period, for people who would fall up to three and a half years outside of the 10 year protection.

In his interim report of October 2010, Lord Hutton recommended that short-term savings were also required, and thatthe only realistic way of achieving these was to increase member contributions. At the Spending Review 2010 theGovernment announced an average increase of 3.2 percentage points on the contribution rates by 2014-15. Theincreases have been phased in from April 2012 on a 40:80:100% basis.

The Department for Education has continued to work closely with trade unions and other representatives bodies todevelop the reformatted Teachers’ Pension Scheme and regulations giving effect to it came into force on 1 April2014. Communications are being rolled out and the reformatted scheme will commence on 1 April 2015.

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 thescheme. Accordingly, the academy has taken advantage of the exemption in FRS 17 and has accounted for itscontributions to the scheme as if it were a defined contribution scheme. The academy has set out above theinformation available on the scheme.

Local Government Pension Scheme

The LGPS is a funded defined benefit scheme, with assets held in separate trustee-administered funds. The totalcontribution made for the period ended 31 August 2014 was £43,000, of which employer's contributions totalled£34,000 and employees' contributions totalled £9,000. The agreed contribution rates for future years are 25.3% foremployers and 5.5-6.8% for employees.

Parliament has agreed, at the request of the Secretary of State for Education, to a guarantee that, in the event ofacademy closure, outstanding local government pension scheme liabilities would be met by the Department forEducation. The guarantee came into force on 18 July 2013.

Page 32





The amounts recognised in the Balance Sheet are as follows:

2014 £

Present value of funded obligations (421,000)Fair value of scheme assets 174,000

Net liability (247,000)

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

2014 £

Current service cost (36,000)Interest on obligation (14,000)Expected return on scheme assets 7,000

Total (43,000)

Actual return on scheme assets 15,000

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

2014 £

Defined benefit obligation transferred on conversion 308,000Current service cost 36,000Interest cost 14,000Contributions by scheme participants 9,000Actuarial Losses 54,000

Closing defined benefit obligation 421,000

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

2014 £

Fair value of scheme assets transferred on conversion 115,000Expected return on assets 7,000Actuarial gains and (losses) 9,000Contributions by employer 34,000Contributions by employees 9,000

174,000

The cumulative amount of actuarial gains and losses recognised in the Statement of Total Recognised Gains andLosses was £(45,000).

The academy expects to contribute £46,000 to its Defined Benefit Pension Scheme in 2015.

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

2014

Equities %67.00Bonds %23.00Property %7.00Cash %3.00

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

2014

Discount rate for scheme liabilities %3.70Expected return on scheme assets %5.40Rate of increase in salaries %3.90Rate of increase for pensions in payment %2.60

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

2014

Retiring todayMales 22.3Females 24.5

Retiring in 20 yearsMales 24.3Females 26.7

Amounts for the current period are as follows:

Defined benefit pension schemes

2014 £

Defined benefit obligation (421,000)Scheme assets 174,000

Deficit (247,000)

Experience adjustments on scheme assets 9,000

23. OPERATING LEASE COMMITMENTS

At 31 August 2014 the academy had annual commitments under non-cancellable operating leases as follows:

2014£

Expiry date:

Between 2 and 5 years 17,566

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24. RELATED PARTY TRANSACTIONS

Owing to the nature of the academy's operations and the composition of the board of trustees being drawn from localpublic and private sector organisations, transactions may take place with organisations in which a Trustees has aninterest. All transactions involving such organisations are conducted at arm's length and in accordance with theacademy's financial regulations and normal procurement procedures.

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

25. MEMBERS' LIABILITY

Each member of the charitable company undertakes to contribute to the assets of the company in the event of itbeing wound up while he/she is a member, or within one year after he/she ceases to be a member, such amount asmay be required, not exceeding £10 for the debts and liabilities contracted before he/she ceases to be a member.

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