SHIREBROOK ACADEMY

COMPANY LIMITED BY GUARANTEE

ANNUAL REPORT AND FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2014

REGISTERED NUMBER: 06628631

SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2014

C O N T E N T S

Page

Reference and administration details 1 - 4

Governors Annual Report 5 -15

Governance statement 16 - 19

Statement on Regularity, Propriety, and Compliance 20

Statement of Governors’ responsibilities 21

Independent auditor's report to the members 22 - 23

Independent reporting accountant’s assurance 24 - 25 report on regularity to Shirebrook academy trust limited and the Education Funding Agency

Statement of financial activities (incorporating the 26 - 27 income and expenditure account)

Balance sheet 28 - 29

Cash flow statement 30

Accounting policies 31 - 35

Notes to the financial statements 35 - 54

SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

REFERENCE AND ADMINISTRATIVE DETAILS

YEAR ENDED 31 AUGUST 2014

REGISTERED CHARITY NAME: Shirebrook Academy

COMPANY REGISTRATION NUMBER: 06628631 (England and Wales)

PRINCIPAL OFFICE: Common Lane Shirebrook NG20 8QF

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

THE GOVERNORS: * Members of the Finance Committee Ms J S Bloor (Principal and Accounting Officer)* † Sponsor Governor Mr S West * † (Chairman from 1 September 2013) Mr A P Brickles* † Mr R S Ibbotson † Mr G A Warrener † Mr M Beck* (Co-opted Governor, appointed 25 September 2013, became Sponsor Governor 29 September 2014) † Dr M Mitton (Staff Governor, appointed 10 September 2013, resigned 6 June 2014) (Co-opted governor, appointed 6 October 2014) Ms N J Lightfoot † (Appointed 12 December 2013) Mr S Dale*† (resigned 7 April 2014) Cllr M Stockdale* (Local Authority Governor, resigned 6 June 2014) Mrs D S McBroom (Parent Governor, resigned 6 June 2014) Mr L J Floyd (Co-opted Governor, resigned 6 June 2014) Mrs N J Heathcote (Staff Governor, resigned 6 June 2014)

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

REFERENCE AND ADMINISTRATIVE DETAILS

YEAR ENDED 31 AUGUST 2014

SENIOR MANAGEMENT TEAM:

Director of Finance and Support Services Mr D S Plummer Vice Principal Curriculum§ Mr A Gilbert Vice Principal Teaching School§ Ms L Ward Vice Principal Intervention and Standards§ Mr N Stafford Assistant Principal Post 16 Development Mrs R Skelton Assistant Principal Examinations and Rewards Mr G Topham Assistant Principal Support for Learning Mrs E Cartledge (From 1 January 2014) Vice Principal Standards (resigned 31 August 2014) Mr T Croft § Assistant Principal until 31 December 2013

SECRETARY: Mr D Plummer

CLERK TO THE GOVERNORS: Mrs J Johnson

AUDITORS: ApC Chartered Accountants and Statutory Auditors 7 St John Street Mansfield Nottinghamshire NG18 1QH

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

REFERENCE AND ADMINISTRATIVE DETAILS

YEAR ENDED 31 AUGUST 2014

PRINCIPAL BANKERS: The Cooperative Bank Balloon Street Manchester M60 4EP

Ipswich Building Society PO Box 547 Suffolk IP3 9WZ

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

Virgin Money Jubilee House Gosforth Newcastle Upon Tyne NE3 4PL

Mansfield Building Society Regent House, Regent Street Mansfield NG18 1SS

Santander Business Banking Bridle Road Bootle Merseyside L30 4GB (until October 2013)

Ulster Bank Ltd 11-16 Donegall Square East Belfast BT1 5UB (until December 2013)

Scottish Widows Bank PO Box 12757 67 Morrison Street Edinburgh EH3 8YJ (until March 2014)

NatWest Bolton Customer Services Centre PO Box 2027, Parklands De Havilland Way Horwich, Bolton BL6 4YU (until July 2014) - 3 -

SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

REFERENCE AND ADMINISTRATIVE DETAILS

YEAR ENDED 31 AUGUST 2014

INVESTMENT ADVISORS: St James’s Place 1 Tetbury Road Cirencester Gloucestershire GL7 1FP

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

GOVERNORS ANNUAL REPORT

YEAR ENDED 31 AUGUST 2014

The Governors, who are also directors for the purposes of company law, have pleasure in presenting their report and the audited financial statements of the charity for the year ended 31 August 2014.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution

The Academy Trust is a Company limited by guarantee and an exempt charity. The Charitable Company’s Memorandum and Articles of Association are the primary governing documents of the Academy Trust.

The Governors act as the Trustees for the charitable activities of Shirebrook Academy and are also the directors of the Charitable Company for the purposes of company law.

Details of Governors who served throughout the year except as noted are included in the Reference and Administrative Details on page 1.

Members' liability

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

Principal Activities

The principal activity of Shirebrook Academy is to advance education for the public benefit by establishing and developing a school offering a broad curriculum with a strong emphasis on science and construction.

Method of Recruitment and Appointment or Election of Governors

The Articles of Association were updated on 6 June 2014. From that date, the Articles of Association state that the following Governors may be appointed: - Up to six sponsor Governors (appointed by the Principal Sponsor, ALLRoads)

- Up to 4 Academy Directors may be appointed or elected in accordance with any policy decided by the Directors for that purpose and for any term determined by the Directors.

- The Principal

- Any number of co-opted directors

The Executive Governing Body has determined that two Parent Governors will be appointed to the Local Governing Body and there are therefore no Parent Directors appointed to the Executive Governing Body. The appointment of the Parent Governors to the Local Governing Body is determined by means of an election.

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

GOVERNORS ANNUAL REPORT (CONTINUED)

YEAR ENDED 31 AUGUST 2014

Except for the Principal Sponsor and the Principal, Governors are subject to retirement after 4 years of service but are eligible for re-appointment or re-election at the meeting at which they retire.

Policies and Procedures Adopted for the Induction and Training of Governors

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

Organisation

The Governing Body is responsible for the strategic direction of the Academy. The Governing Body reviews progress towards educational objectives and results. They also approve major expenditure requests, set the budget for the following year, and set the organisational staffing structure.

There are four subcommittees in place to which specific responsibilities are delegated by the main Governing Body: - Finance Committee – this reviews the financial position of the academy, and has limited delegated powers to approve revenue and capital expenditure, disposal of assets and changes to the staffing structure of the Academy. This subcommittee also reviews issues relating to Human Resources, Health and Safety, Premises, and Administration. This subcommittee was known as the Business Operations Committee until September 2014.

- Curriculum Subcommittee – this subcommittee reviews the educational progress of the Academy towards its objectives, the content of its curriculum, timetabling, student activities and achievement.

- Co-location Subcommittee – this subcommittee is a joint committee with Stubbin Wood School with which Shirebrook Academy shares its new building. It is concerned with finding the best means of fulfilling each governing body’s vision and responsibilities to ensure sound management of the joint/shared facilities which are to be located on the new shared Shirebrook Academy / Stubbin Wood site.

- Audit subcommittee – this committee reviews the Academy's internal and external financial statements and reports to ensure that they reflect best practice; considers all relevant reports by the appointed external auditor; reviews the effectiveness of the body's internal control system.

The Principal is the designated Accounting Officer of the Academy and has overall responsibility for the day to day financial management of the Charitable Company. The Principal has delegated responsibility for low values of expenditure to specific budget holders who are each responsible for managing their own departments within the constraints of their allocated budgets. A system of financial controls is in place to manage this process. The Principal manages the Academy on a daily basis supported by a Senior Leadership Team. The Senior Leadership Team meets frequently to discuss emerging matters and to help to develop strategies for future development to be put to the Principal and the Governing Body as required for approval. Each member of the Senior Leadership Team has specific responsibilities to assist the Principal to manage certain aspects of the Academy. Please refer to the Reference and Administrative details on page 2 for more information.

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

GOVERNORS ANNUAL REPORT (CONTINUED)

YEAR ENDED 31 AUGUST 2014

In June 2014 Shirebrook Academy became a Multi Academy Trust and updated the structure of its governance accordingly.

Shirebrook Academy: Multi Academy Trust Governance Structure

Multi Members Academy Trust Executive Governing Body

Executive Finance Audit committees Shirebrook committee committee Individual Academy Local academies Governing Body

Student & Co-Location Curriculum committee committee

The Finance Committee and Audit Committee report directly to the Executive Governing Body, which deals with all strategic matters relevant to the Multi-Academy Trust, including overall financial control. A Local Governing Body has been set up which deals with all the business of Shirebrook Academy as single school.

Shirebrook Academy has not set up a Finance Sub-Committee reporting to the Local Governing Body – until the Multi Academy Trust expands, this function will be undertaken by the Multi-Academy Trust Executive Finance Committee. The remit of the committees remain in line with those prior to the change in the Articles described above.

Risk management

The major risks to which the Academy is exposed are as follows: - Loss of (or reduction in) funding - Loss of building or facilities preventing the delivery of education - Loss of members of staff (either suddenly or gradually over time) - Loss of reputation - Lack of safeguarding of students - Funding of pension deficits under the Local Government Pension Scheme (LGPS) - Funding agreement for Post 16 Aspire students based or taught at the Academy.

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

GOVERNORS ANNUAL REPORT (CONTINUED)

YEAR ENDED 31 AUGUST 2014

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

The Trustees of the LGPS pension scheme arrange for appropriate contribution rates to be paid by the members and the employer to ensure that the pension scheme is properly funded over time. The Academy is aware of the lagged nature of Post 16 funding and has budgeted to use reserves put aside to bridge the gap in timing between providing the service and receiving the associated funding one year later.

Connected Organisations, including Related Party Relationships Shirebrook Academy is a company controlled by its Principal Sponsor, ALLRoads, a Direct Labour Organisation (DLO) of Derbyshire County Council. The Principal Sponsor has the power to appoint and remove Sponsor Governors. During the period to 6 June 2014, there was a maximum of six Sponsor Governors out of a total of 13 Governors in service at any one time. Between 6 June 2014 and the date that these Financial Statements were approved, there has been a maximum of six Sponsor Governors out of eight Governors appointed to the Executive Governing Body. Once the Academy attracts additional schools to the Group the appointment of Academy Directors will reduce the proportion of Sponsor Directors accordingly.

OBJECTIVES, STRATEGIES AND ACTIVITIES

This was the fourth full year of operation for Shirebrook Academy.

Our target for 2013-2014 relating to student attendance was 95.6%. A target of 1.8% was also set for those with Persistent Absence (under 85% attendance). The Academy achieved 96.0% attendance, which was 0.6% higher than the previous year and exceeded our set target. Our Persistent Absence was 1.4%, which was 0.5% lower than the previous year and one of the lowest rates for Persistent Absence in the East Midlands. These improvements were made possible after the implementation of several strategies that tracked and targeted attendance at a higher level, as well as a policy not to allow holidays except for exceptional circumstances.

During 2013-14 we had 4 Post 16 students in Year 12 and 7 in Year 13. Students who completed Year 13 in 2014 all progressed into higher education, employment or further training.

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

GOVERNORS ANNUAL REPORT (CONTINUED)

YEAR ENDED 31 AUGUST 2014

The Shirebrook Academy Endowment Fund was launched in 2010. We use the returns on the £2,000,000 investment from a donation from our Sponsor (ALLRoads) for the following purposes:

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

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

- providing grants or other financial assistance to assist pupils in financial need to undertake curricular activities (including educational travel in the United Kingdom or overseas). This year this has involved helping to make trips more affordable by subsidising selected trips;

- providing or assisting in the provision of services or facilities at the Academy not provided for under the funding agreement. This year this has included supporting additional CPD (Continuing Professional Development) for staff to benefit the quality of delivery to students, supporting the cost of external events such as the Winter Wonderland and Summer Family Fun Day, and contributing towards the cost of our new Pine Cone development; and

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

PUBLIC BENEFIT STATEMENT

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

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

The Academy has enhanced the provision of services to the community during the 2013-14 academic year. In addition to our annual Community Fun Day and Winter Wonderland events, we continued to employ two Youth Workers to improve the opportunities young people have to undertake activities outside of school time. The Academy has also appointed a third party, Facilities for All, to manage its brand new facilities out of hours. Building on the initial focus on the use of the artificial football pitch by various local football clubs, Facilities for All are continuing to grow community use of our facilities throughout the week for a variety of different sporting organisations including gymnastics.

The Governors confirm that they have complied with the duty in Section 4 of the Charities Act 2006 to have due regard to the Charity Commission's general guidance on public benefit.

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

GOVERNORS ANNUAL REPORT (CONTINUED)

YEAR ENDED 31 AUGUST 2014

STRATEGIC REPORT

ACHIEVEMENTS AND PERFORMANCE

Shirebrook opened to its students as an Academy in September 2010. The previous school’s results had been 44% 5 A* to C with English and Maths and 59% 5 A* to C (August 2010). Four years later, Shirebrook Academy had improved its 5 A* to C, including English and Maths, by seventeen per cent to 61%; as well as its 5 A* to C by six per cent to 65%.

Percent achieved 5 A*-C grades Percent achieved 5 A* - C including English and Mathematics (2008 to 2014) 100 (2008 to 2014) 97 70 65 64 100 61 79 60 55 80 65 50 43.8 58.8 39.3 55.7 40 60 46 29 30 40 20 10 20 0 0 2008 2009 2010 2011 2012 2013 2014 2008 2009 2010 2011 2012 2013 2014

During 2013, the Academy was inspected by Ofsted and received a grade of “Outstanding”.

Our examination results have remained steady and exceed national averages despite our below average intake. Progress levels in English and Maths are above national average and outstanding for some groups of pupils (especially pupil premium students). In other areas (such as History, RE, MFL, Food Technology, Electronics, ICT, PE) progress is outstanding for all learners. We have closed the gap in terms of Pupil Premium students in all subject areas. Our attendance remains very high (96.1%) above national average for all schools and very high for a school with high levels of deprivation.

During the year the Academy started to construct a new development which contains two classrooms, a Post 16 classroom and social area, an office, and changing facilities for horticultural education. The buildings were completed in October 2014 and are a fantastic asset which we hope will attract future students to our post 16 provision as well as being a great base for horticultural work in an area that has huge potential to support our extended curriculum provision.

We have continued our aim to involve the community out of school hours by holding a Winter Wonderland event in December and we held our fourth Annual Fun Day in the summer which once again attracted a large number of visitors to the site. Local football clubs continue to use our artificial pitch and our external grass pitches. As well as securing long term bookings with our partners Shirebrook Rangers and Chesterfield FC through Facilities for All who are managing our facilities on our behalf outside of school hours, we have entered into an agreement with Shirebrook Gymnastics Club to use our sports hall as their base during the weekends and on Monday evenings.

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

GOVERNORS ANNUAL REPORT (CONTINUED)

YEAR ENDED 31 AUGUST 2014

Once again this year, the Academy provided a ‘summer school’ for a week at the start of the summer holidays followed by a ‘summer camp’ in late August 2014.

The Endowment Fund has been used to support the professional development of a number of members of staff during the year.

PUPIL PREMIUM

For the Academic Year 2013-2014, the Academy was granted £304,000 (2013: £268,000) in pupil premium. This was the third full academic year which the Academy had received such funding. This money is granted to the Academy based on target children who are free school meals (FSMs), or have been at some point over the last six years, to enhance their progress.

We spent our Pupil Premium funding in order to achieve the following objectives:  To raise attainment of our Pupil Premium students across all subjects, with a special focus upon literacy;  To enhance the curriculum for our Pupil Premium students;  To provide and extend the outstanding Pastoral care of the Academy

We used our Pupil Premium funding in the following ways:  Running intervention groups in both Key Stage 3 (KS3) and Key Stage 4 (KS4) during registration;  Providing personalised interventions for all KS4 Pupil Premium students at least twice a week;  Allocating funding of £50 per student that could be spent on uniform/trips/extra music tuition etc;  Revision Weekends and Saturday morning workshops either reduced or free for Pupil Premium students;  Alternative Curriculum Pathways for students;  Staff development to enhance questioning and staff skills in ensuring students do make adequate progress;  Employing extra staff in English and Maths to ensure good progress;  Providing extra rewards for students to enhance confidence and inspire students to work harder;  Various workshops, interventions that provided pastoral support and build confidence amongst selected students;  Summer School that builds upon the school’s 2 week transition program and builds confidence amongst students;  Counselling sessions;  Increased emphasis on literacy interventions, especially in KS3;  Grammar workshops for Pupil Premium Boys in Year 11 and Intrinsic tracking of this group;  Setting up of the i3 and i4 (specialist units within the Academy to support particular students)- including staffing costs;  The establishment of a Period 7 (after school club) that enhances students school experience and builds upon academic strengths and weaknesses;  Creation of new teaching groups and specialised support to enhance Literacy with a focus on grammar in Year 11;  Rewards and Sanctions for attendance.

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

GOVERNORS ANNUAL REPORT (CONTINUED)

YEAR ENDED 31 AUGUST 2014

In 2014 our Pupil Premium students gained 52% 5 A* to C passes with English and Maths (2013: 44%), compared to the National average of 39% (2013) and the benchmark FFT D figures for the school of 34%. The percentage of students on Pupil Premium students who made expected levels of progress was 67% in English (2013: 60%) and 75% in Maths (2013: 69%) - the latter progress levels outstripped non-Pupil Premium students by 5%. Consequently, it can be stated that our Pupil Premium results vastly exceeded benchmark FFT D targets, significantly beat national averages and therefore it may be argued that the Academy have almost ‘closed the gap’ between Pupil Premium and non-Pupil Premium students. This was achieved against the context of the cohort entering the school with significantly below average attainment in Literacy and Numeracy on entry.

The Academy also saw a drop in fixed term exclusions over 2013-2014, by 26% for the whole school. The Pupil Premium attendance also increased to significantly beyond the 2013 national average, with 95.0% attendance (2013: 94.3%), with 2.3% persistently absent (2013: 3.5%).

GOING CONCERN

After making appropriate enquiries, the Governing Body has a reasonable expectation that the Academy Trust has adequate resources to continue in operational existence for the foreseeable future. For this reason it continues to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Statement of Accounting Policies at note 1 of these financial statements.

FINANCIAL REVIEW

Educational Activities

Excluding the Endowment Fund and the Restricted Fixed Asset Funds, the net outgoing resources of the Academy during the year were £214,000 (2013: £166,000 incoming) before adjustments for gains and losses related to investments and defined benefit pension schemes.

The main element of grant income, General Annual Grant, was slightly ahead of budget as a result of a better than expected number of students being on roll during the year. We continue to attract additional students as a result of our “outstanding” OFSTED classification. As a relatively new Academy, the Academy continues to benefit from start-up grants although the value of such grants is falling as the Academy becomes more established. We received £179,000 in start up grants during the year (2013: £204,000). The Academy benefitted from increased Pupil Premium this year, at £346,000 compared to £268,000 in 2013, primarily due to the receipt of Summer School funding of £40,000 during the year.

The Academy has used its grant income cautiously during the year. Excluding property assets, we have purchased assets valued at £164,000 (2013: £236,000), including laptops valued at £17,000; outdoor fitness equipment costing £16,000 and stage equipment costing £13,000.

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

GOVERNORS ANNUAL REPORT (CONTINUED)

YEAR ENDED 31 AUGUST 2014

The Academy faces the challenge of static funding in the short term as funding formulae fail to take account of cost pressures, including creeping inflation and the inevitable future increase in salaries following many years of pay freezes. The protection the Academy receives from its old rates of Educational Service Grant continues to fall away. This pressure will be partly offset by continued increases in pupil premium funding as our numbers of students entitled to this support increases. The Academy benefits from the Minimum Funding Guarantee at present to support the cost of its current staff base.

Pupil numbers have been positively affected by our Outstanding Ofsted rating, and the forecast decline in pupil numbers is no longer a threat. Numbers will increase again after 2015/16 when larger primary school cohorts begin to feed in to the Academy. In light of these future uncertainties and reducing revenues the Academy has finished the year in line with budget after having transferred £50,000 to a property renovation reserve. This has been achieved without compromising the quality of education offered to our students and means that the Academy has been able to continue to carry forward cumulative reserves of £1,245,000 (2013: £1,379,000) excluding endowment, fixed assets and pension reserves into the following Academic year, despite using some of the brought forward reserves towards the cost of the Pine Cone development as described below. The cash balance of the Academy has been very healthy all year, ending the year with a balance of £1,523,000 (2013: £1,525,000) excluding endowment funds.

Shirebrook Academy has identified a need to improve alternative education and the proposition for our post 16 students, and started to construct a new set of buildings called the “Pine Cone” development during the latter part of the year. The new buildings will provide facilities for horticultural education, and teaching and social areas to be used by our Post 16 students. The project is expected to cost £600,000 in total. During the year, £200,000 was granted to the Academy by the Shirebrook Academy Endowment Fund (2013: £nil) towards the cost of this project. The rest of the costs of this project are to be met from brought-forward reserves and from a contribution from Stubbin Wood Special School. At the end of the year, assets in the course of construction valued at £505,000 (2013: £nil) were recognised in the balance sheet.

ENDOWMENT FUND

The returns on the Endowment Fund were positive in the year. Our initial investment in Unit Trusts of £1,700,000 now stands at £2,276,000 (2013: £2,148,000). The Endowment Fund donated £200,000 to Shirebrook Academy to support the costs of the Pine Cone development. Due to this large donation, the overall value of the Fund reduced by £83,000 during the year (2013: £298,000 gain). The Fund also supported staff development and training and provided student bursaries for certain students moving into higher education. Support was provided for the school Paris trip with a significant £11,000 donation, and grants were made to our local feeder primary schools totalling £18,000 in the year towards various projects at those locations.

RESERVES POLICY

The Academy holds reserves totalling £1,245,000 (2013: £1,170,000) excluding the Endowment Fund, fixed asset and pension funds. All expenditure is categorised according to the source of funding, with separate cost centres in operation for specific ring fenced grants. We also track unrestricted fund income and expenditure in a similar way. The remainder of our income and expenditure cost centres represent transactions on the General Annual Grant split by department.

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

GOVERNORS ANNUAL REPORT (CONTINUED)

YEAR ENDED 31 AUGUST 2014

At the end of the year we have carried forward £25,888,000 (2013: £26,149,000) in the restricted capital fund; £465,000 (2013: £461,000) in (restricted) GAG reserves, £250,000 (2013: £200,000) in a property repair reserve, and £82,000 (2013: £399,000) in unused restricted start up grant funding. The remainder of the start up grant fund and the GAG reserve will be used over the forthcoming years to support our staff cost base and avoid increases in class sizes as far as possible to support the quality of learning, and to help to complete the new building designed for post-sixteen and horticultural learning. There are a number of other restricted funds representing the residual unspent element of grants received during the year totalling £184,000 (2013:£211,000) which will be spent for the purposes of the individual grants concerned, plus £154,000 (2013: £108,000) unrestricted funds carried forward at the end of the year which is being retained as contingency funding for general purposes. There was also a negative pension reserve at the year end amounting to £1,242,000 (2013: £1,057,000), which was calculated by the actuary.

INVESTMENT POLICY The Academy manages its cash by reviewing the short term and medium term requirements for funds. Surplus funds are invested in bank accounts giving the best possible returns for the period of time the funds are to be invested. Apart from with our main bankers (the Cooperative Bank) no more than £250,000 (plus accumulated interest) is invested in any one institution.

The Trustees of the Endowment Fund invested its funds of £2m in a variety of locations, with £300,000 originally invested into cash deposits and the remainder into longer term investments. We originally invested £1,700,000 into Unit Trusts, with the aim of achieving a spread of funds and therefore significant diversification of asset class including equities and fixed interest, geographical areas, and currency. The aim of this is to allow the value of the Fund’s capital to grow in the medium to long term whilst allowing withdrawals to be made from the cash deposits to further the aims of the Fund in the short term. The value of our unit trust investments had grown to £2,276,000 by 31 August 2014 and the Endowment Fund had cash deposits, which have been used to provide support to the Academy over the last four years, which have reduced to £96,000 by that date.

PLANS FOR FUTURE PERIODS

Our priority is to continue to ensure that the achievement of our students continues to improve, in terms of their pastoral wellbeing and academic success. We intend to continue to develop the curriculum offered to our students to ensure that they have the best possible education. We are planning to significantly increase our Post 16 offer in 2014 by expanding the partnership we currently have with Chesterfield College to include three other secondary schools in the district. Together, the four schools and Chesterfield College will be able to offer a much wider curriculum to our students. The enlarged post sixteen partnership is known as “Aspire”. Of 59 students starting with Aspire in 2014-15, 29 students are based at the Academy. Due to the nature of the formula used to fund post sixteen education nationally, the Academy will not receive any funding during the first year of the collaboration since students are funded one year in arrears by the Education Funding Agency. The Academy therefore intends to set a deficit budget, using part of its brought forwards reserves temporarily in 2014-15, to enable it to deliver post sixteen education until the funding is received for the first time in the 2015-16 financial year.

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

GOVERNORS ANNUAL REPORT (CONTINUED)

YEAR ENDED 31 AUGUST 2014

Our Pine Cone development, which consists of two additional classrooms, a Post 16 Centre, offices, and changing facilities for Horticulture opened in October 2014 on the site of our old building. We intend to develop the breadth of horticultural and other alternative education delivered on this site over the forthcoming year.

In partnership with another local school, Shirebrook Academy has also been designated as a Teaching School which enables it to provide support to other schools (for example by hosting training courses and conferences and providing teachers at other schools with support). During 2014-5 we look forward to developing this element of our operations to form a sustainable support service to other schools in the area going forward.

The Academy has now been designated as a Multi Academy Trust, which allows us to join with other partner schools on a more formal basis in the future.

FUNDS HELD AS CUSTODIAN TRUSTEE ON BEHALF OF OTHERS

None

AUDITOR

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

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

Signed on behalf of the Governors

Mr A P Brickles Governor

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

GOVERNANCE STATEMENT

YEAR ENDED 31 AUGUST 2014

As Governors, we acknowledge we have overall responsibility for ensuring that Shirebrook Academy has an effective and appropriate system of control, financial and otherwise. However such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives, and can provide only reasonable and not absolute assurance against material misstatement or loss.

The Governing Body has delegated the day-to-day responsibility to the Principal, as Accounting Officer, for ensuring financial controls conform with the requirements of both propriety and good financial management and in accordance with the requirements and responsibilities assigned to it in the funding agreement between Shirebrook Academy and the Secretary of State for Education. They are also responsible for reporting to the Governing Body any material weaknesses or breakdowns in internal control.

Governance

The information on governance included here supplements that described in the Governors’ Reports and in the Statement of Governors’ responsibilities. The Governing Body has formally met 5 times during the year. Attendance during the year at meetings of the full governing body was as follows:

Governor Meetings attended Out of a possible

Mr A Brickles 4 5

Mr S West (Chairman appointed 25 Sept 2013) 5 5

Ms J Bloor (Principal) 5 5

Cllr M Stockdale* 1 5

Mr G A Warrener 3 5

Mrs D McBroom* 3 5

Mr R S Ibbotson 5 5

Mr L Floyd* 1 5

Mrs N Heathcote* 4 5

Mr S Dale (Resigned 7 April 2014) 1 2

Dr M Mitton (Appointed 10 Sept 2013)* 4 5

Mr M Beck (Appointed 25 Sept 2013) 5 5

Dr N Lightfoot (Appointed 12 Dec 2013) 2 3

* Resigned as Statutory Directors on 6th June 2014

- 16 -

SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

GOVERNANCE STATEMENT (CONTINUED)

YEAR ENDED 31 AUGUST 2014

The Governing Body sub committees have formally met 16 times during the year. The Academy has 4 sub- committees.  Student and Curriculum Committee (S&C) (4 times)  Business Operations Committee (BO) (5 times)  Co-Location Committee (CL) (6 times) (The co-location committee was established in order to prepare for the move into a new building, also to be occupied by a local authority school, Stubbin Wood School, and to assess and overcome any difficulties that may occur as a result of this.)  Audit Committee (A) (once)

Attendance during the year at meetings of the sub committees was as follows:

Governor Committees Meetings attended Out of a possible

Mr A Brickles BO, CL, A 5, 6, 1 5, 6, 1

Mr S West (Chairman appointed 25/9/13) BO, A 4, 1 5, 1

Ms J Bloor (Principal) BO, CL, A 5, 5, 1 5, 6, 1

Cllr M Stockdale* BO, CL, A 0, 3, 0 5, 5, 1

Mr G A Warrener S&C, A 3, 1 4, 1

Mrs D Mcbroom* S&C 3 4

Mr R S Ibbotson S&C, CL, A 4, 2, 1 4, 6, 1

Mr L Floyd* CL 4 5

Mrs N Heathcote* S&C 1 4

Mr S Dale BO, A 0, 0 3, 1

Dr M Mitton* S&C 2 4

Mr M Beck B0, A 4, 1 5, 1

Dr N Lightfoot S&C 1 2

* Resigned as Statutory Directors on 6th June 2014

- 17 -

SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

GOVERNANCE STATEMENT (CONTINUED) YEAR ENDED 31 AUGUST 2014

The Purpose of the System of Internal Control

The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk of failure to achieve policies, aims and objectives; it can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an on-going process designed to identify and prioritise the risks to the achievement of Academy Trust policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically. The system of internal control has been in place in Shirebrook Academy for the year ended 31 August 2014 and up to the date of approval of the annual report and financial statements.

Capacity to Handle Risk

The Governing Body has reviewed the key risks to which the Academy Trust is exposed together with the operating, financial and compliance controls that have been implemented to mitigate those risks. The Governing Body is of the view that there is a formal ongoing process for identifying, evaluating and managing the Academy Trust's significant risks that has been in place for the year ending 31 August 2014 and up to the date of approval of the annual report and financial statements.

Governors receive training which includes information on the main areas of risk to the Academy. Senior members of staff have their own personal development plans, which include training on their leadership skills, incorporating elements of risk management.

The Risk and Control Framework

The Academy Trust’s system of internal financial control is based on a framework of regular management information and administrative procedures including the segregation of duties and a system of delegation and accountability. In particular, it includes: - comprehensive budgeting and monitoring systems with an annual budget and periodic financial reports which are reviewed and agreed by the Governing Body; - regular reviews by the Business and Operations Committee of reports which indicate financial performance against the forecasts and of major purchase plans, capital works and expenditure programmes; - setting targets to measure financial and other performance; - clearly defined purchasing (asset purchase or capital investment) guidelines. - delegation of authority and segregation of duties; - identification and management of risks.

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

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

GOVERNANCE STATEMENT (CONTINUED) YEAR ENDED 31 AUGUST 2014

Review of Effectiveness

As Accounting Officer, the Principal has responsibility for reviewing the effectiveness of the system of internal control. During the year in question the review has been informed by: - the work of the Responsible Officer; - the work of the external auditor; - the work of the executive managers within the Academy who have responsibility for the development and maintenance of the internal control framework.

The Accounting Officer has been advised of the implications of the result of their review of the system of internal control by the Business and Operations Committee and no plan to address weaknesses and ensure continuous improvement of the system was considered necessary.

Approved by order of the members of the Governing Body and signed on its behalf by:

Mr A P Brickles Ms J S Bloor Governor

- 19 -

SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

STATEMENT ON REGULARITY, PROPRIETY AND COMPLIANCE

YEAR ENDED 31 AUGUST 2014

As accounting officer of Shirebrook Academy I have considered my responsibility to notify the Academy Trusts Board of Governors and the Education Funding Agency of material irregularity, impropriety and non-compliance with terms and conditions of funding, under the funding agreement in place between the Academy Trust and the Secretary of State. As part of my consideration I have had due regard to the requirements of the Academies Financial Handbook.

I confirm that I and the Academy Trusts Board of Governors are able to identify any material irregular or improper use of funds by the Academy Trust, or material non-compliance with the terms and conditions of funding under the academy trust’s funding agreement and the Academies Financial Handbook.

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

Ms J S Bloor Accounting Officer

- 20 -

SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

YEAR ENDED 31 AUGUST 2014

The Governors (who act as Trustees for the charitable activities of Shirebrook Academy and are also directors of the Charitable Company for the purposes of company law) are responsible for preparing the Governors’ Report including the Strategic Report and the financial statements in accordance with Annual Accounts Requirements issued by the Education Funding Agency, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

Company law requires the Governors to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the Charitable Company and of the incoming resources and application of resources, including the income and expenditure of the Charitable Company for the year. In preparing these financial statements, the Governors are required to:

 select suitable accounting policies and then apply them consistently;  observe the methods and principles in the Charities SORP;  make judgements and estimates that are reasonable and prudent;  state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;  prepare the financial statements on the going concern basis unless it is inappropriate to presume that the academy will continue in operation.

The Governors are responsible for keeping adequate accounting records that are sufficient to show and explain the Charitable Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Charitable Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charitable Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Governors are responsible for ensuring that in its conduct and operation the Charitable Company applies financial and other controls which conform to the requirements both of propriety and good financial management. They are also responsible for ensuring that grants received from the Education Funding Agency /Department for Education have been applied for the purposes intended.

In so far as the Governors are aware:

 there is no relevant audit information of which the Academy’s auditor is unaware; and  the Governors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

The Governors are responsible for the maintenance and integrity of the corporate and financial information included on the Charitable Company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Approved by order of the members of the Governing Body and signed on its behalf by:

Mr A P Brickles Governor

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INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF

SHIREBROOK ACADEMY

We have audited the financial statements of Shirebrook Academy for the year ended 31 August 2014 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and the Annual Accounts Direction 2013 to 2014 issued by the Education Funding Agency.

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

RESPECTIVE RESPONSIBILITIES OF GOVERNORS AND AUDITORS

As explained more fully in the Statement of the Governors’ responsibilities set out on page 20, the Governors (who are also the directors of Shirebrook Academy for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.

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

BASIS OF AUDIT OPINION

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

Opinion on financial statements In our opinion the financial statements:

- give a true and fair view of the state of the Academy Trust’s affairs as at 31 August 2014 and of its

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

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

- have been prepared in accordance with the requirements of the Companies Act 2006 and the Annual Accounts Direction 2013 to 2014 issued by Education Funding Agency.

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INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE MEMBERS OF

SHIREBROOK ACADEMY

Opinion on other matters prescribed by the Companies Act 2006

In our opinion the information given in the Governors Annual Report including the Strategic Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

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

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

- certain disclosures of Governors' remuneration specified by law are not made; or

- we have not received all the information and explanations we require for our audit; or

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

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

- 23 -

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

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

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

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

The accounting officer is responsible, under the requirements of Shirebrook Academy’s funding agreement with the Secretary of State for Education dated 5 February 2010 and the Academies Financial Handbook extant from 1 September 2013, for ensuring that expenditure disbursed and income received is applied for the purposes intended by Parliament and the financial transactions conform to the authorities which govern them.

Our responsibilities for this engagement are established in the United Kingdom by our profession’s ethical guidance and are to obtain limited assurance and report in accordance with our engagement letter and the requirements of the Academies: Accounts Direction 2013 to 2014. We report to you whether anything has come to our attention in carrying out our work which suggests that in all material respects, expenditure disbursed and income received during the period 1 September 2013 to 31 August 2014 have not been applied to purposes intended by Parliament or that the financial transactions do not conform to the authorities which govern them.

Approach

We conducted our engagement in accordance with the Academies: Accounts Direction 2013 to 2014 issued by the EFA. We performed a limited assurance engagement as defined in our engagement letter.

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

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

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

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

Approach (continued)

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

Conclusion

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

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

- 25 -

SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT) YEAR ENDED 31 AUGUST 2014

Unrestricted Restricted Restricted Endowment General Fixed Total Total Funds Funds Asset Funds Funds 2014 2013 Note £000 £000 £000 £000 £000 £000 Incoming resources Incoming resources from generated funds: - Voluntary income 3 - 3 - - 3 26,153 - Activities for generating funds 4 11 31 - - 42 26 - Investment income 5 26 73 - - 99 102

Incoming resources from charitable activities: - Funding for the Academy’s educational operations 6 4 4,871 16 - 4,891 4,930 - Project management grants ------Other incoming resources 6 77 309 200 - 586 261 ______

Total incoming resources 118 5,287 216 - 5,621 31,472 ______Resources expended Cost of generating funds: - Costs of generating voluntary income ------Fundraising trading ------Investment management costs - - - 39 39 38 Charitable activities: - Academy’s educational operations 7,8 72 5,281 925 - 6,278 5,580 - Development costs ------Governance costs 7,9 - 18 - - 18 37 ______

Total resources expended 72 5,299 925 39 6,335 5,655 ______

Net incoming (outgoing) resources before transfers 46 (12) (709) (39) (714) 25,817 ______

Transfers 16 - (248) 448 (200) - - ______

Carried forward 46 (260) (261) (239) (714) 25,817 ______

- 26 -

SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

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

YEAR ENDED 31 AUGUST 2014

Unrestricted Restricted Restricted Endowment General Fixed Total Total Funds Funds Asset Funds Funds 2014 2013 Note £000 £000 £000 £000 £000 £000

Net incoming (outgoing) resources before other recognised gains and losses brought forward 46 (260) (261) (239) (714) 25,817

Other recognised gains and losses Gains (losses) on investment assets 13 - - - 156 156 298 Actuarial (losses) gains on defined benefit pension schemes - (105) - - (105) (138) ______

Net movement in funds 46 (365) (261) (83) (663) 25,977 ______

Reconciliation of funds

Total funds brought forward at 1 September 2013 108 214 26,149 2,304 28,775 2,798 ______

Total funds carried forward at 31 August 2014 154 (151) 25,888 2,221 28,112 28,775 ______

All of the Academy’s activities derive from continuing operations during the above two financial periods.

A statement of total recognised gains and losses is not required as all gains and losses are included in the Statement of Financial Activities.

- 27 -

SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

BALANCE SHEET 31 AUGUST 2014

Note 31 August 2014 31 August 2013 £000 £000 £000 £000

FIXED ASSETS Tangible assets 12 25,888 26,148 Investments 13 2,346 2,435 ______

28,234 28,583 CURRENT ASSETS Debtors 14 367 203 Cash at bank 1,523 1,525 ______

1,890 1,728 CREDITORS: Amounts falling Due within one year 15 (770) (479) ______

NET CURRENT (LIABILITIES)/ASSETS 1,120 1,249 ______

TOTAL ASSETS LESS CURRENT LIABILITIES 29,354 29,832 ______

NET ASSETS EXCLUDING PENSION 29,354 29,832 LIABILITIES Pension scheme liability 26 (1,242) (1,057) ______

NET ASSETS 28,112 28,775 ______FUNDS Endowment funds 16 2,221 2,304 Restricted funds: Fixed asset fund 16 25,888 26,149 General fund 16 1,091 1,271 Pension reserve 16 (1,242) (1,057) ______

Total restricted funds 27,958 28,667 Unrestricted funds General funds 16 154 108 ______

TOTAL FUNDS 28,112 28,775 ______

- 28 -

SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

BALANCE SHEET (Continued)

31 AUGUST 2014

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

Mr S West Governor

Company Registration Number: 06628631

- 29 -

SHIREBROOK ACADEMY

COMPANY LIMITED BY GUARANTEE

CASH FLOW STATEMENT

31 AUGUST 2014

Note 2014 2013 £000 £000

NET CASH INFLOW FROM OPERATING ACTIVITIES 20 141 75

RETURNS ON INVESTMENTS AND SERVICING OF FINANCE 21 88 43

CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT 22 (231) (179)

______

CASH INFLOW BEFORE FINANCING (2) (61)

FINANCING 23 - - ______

(DECREASE) / INCREASE IN CASH 24 (2) (61) ______

RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS

NET FUNDS AT 1 SEPTEMBER 2013 1,525 1,586

______

NET FUNDS AT 31 AUGUST 2014 1,523 1,525 ______

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

ACCOUNTING POLICIES

YEAR ENDED 31 AUGUST 2014

1. ACCOUNTING POLICIES

Basis of accounting

The financial statements have been prepared under the historical cost convention, except for investments which are included at market value, and in accordance with applicable United Kingdom Accounting Standards, the Charity Commission “Statement of Recommended Practice Accounting and Reporting by Charities" (SORP 2005), the Academies Accounts Direction 2013 to 2014 issued by Education Funding Agency and the Companies Act 2006. A summary of the principal accounting policies, which have been applied consistently, except where noted, is set out below.

Going Concern

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

Investments

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

Interest received

Interest income is included when received.

Fund accounting

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

Restricted fixed asset funds are resources which are to be applied to specific capital purposes imposed by the Education Funding Agency, Department for Education, sponsor or other funders where the asset acquired or credited is held for a specific purpose.

Restricted general funds comprise all other restricted funds received and include grants from the Education Funding Agency and Department for Education or other funders.

Investment income and gains are allocated to the appropriate fund.

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

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

ACCOUNTING POLICIES

YEAR ENDED 31 AUGUST 2014

1. ACCOUNTING POLICIES Continued Tangible fixed assets

Tangible fixed assets acquired since the Academy was established are included in the accounts at cost. Where tangible fixed assets have been acquired with the aid of specific grants, either from the government or from the private sector, they are included in the Balance Sheet at cost and depreciated over their expected useful economic life. The related grants are credited to a restricted fixed asset fund in the Statement of Financial Activities and carried forward in the Balance Sheet. Depreciation on such assets is charged to the restricted fixed asset fund in the Statement of Financial Activities so as to reduce the fund over the useful economic life of the related asset on a basis consistent with the Academy’s depreciation policy. Assets costing less than £500 are written off in the period of acquisition. All other assets are capitalised.

The Academy holds land and buildings on lease from Derbyshire County Council, with a rental of one peppercorn a year to be paid. The current lease is for 3 years from 1 September 2011, and the accounts show a notional rental for the buildings based on building valuations complied by the Valuation Office Agency. A new property was completed during 2013 on which a 125 year lease has been signed. Therefore the notional rent has been apportioned up to the point at which the academy transferred into the new property which has been included as a donation in the SOFA and asset on the Balance Sheet depreciated as stated below

Depreciation

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost of each asset on a straight line basis over its expected useful lives, as follows: Leasehold land and buildings - 40 years Fixtures and fittings - 3 and 5 years Computer equipment - 3 and 5 years

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

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

Pensions Benefits

Retirement benefits to employees of the Academy are provided by the Teachers’ Pension Scheme (‘TPS’) and the Local Government Pension Scheme (‘LGPS’). These are defined benefit schemes, are contracted out of the State Earnings-Related Pension Scheme (‘SERPS’), and the assets are held separately from those of the Academy. The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees’ working lives with the Academy in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quinquennial valuations using a prospective benefit method.

- 32 -

SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

ACCOUNTING POLICIES

YEAR ENDED 31 AUGUST 2014

1. ACCOUNTING POLICIES Continued

Pensions Benefits (Continued)

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

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

Incoming resources

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

 Grants receivable

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

 Sponsorship income

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

 Donations

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

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

ACCOUNTING POLICIES

YEAR ENDED 31 AUGUST 2014

1. ACCOUNTING POLICIES Continued Incoming resources (continued)

 Other income

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

 Donated Services and Gifts in Kind

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

Resources expended

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

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

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

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

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

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

Operating leases

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

- 34 -

SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2014

1. ACCOUNTING POLICIES Continued

Taxation

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

2. GENERAL ANNUAL GRANT (GAG)

Under the funding agreement with the Secretary of State the academy trust was subject to limits at 31 August 2014 on the amount of GAG that could be carried forward from one year to the next. An amount equal to 12% of GAG could be carried forward, of which up to 2% could be used for general recurrent purposes, with any balance being available for premises / capital purposes

The academy has not exceeded these limits during the year ended 31 August 2014 (2013: not exceeded)

3. VOLUNTARY INCOME Unrestricted Restricted Endowment 2014 2013 Funds Funds Fund Total Total £000 £000 £000 £000 £000 Gifts in Kind - - - - - Academy land and buildings from LEA - - - - 25,360 Academy fixtures and fittings from LEA - - - - 692 Academy premises (notional rent payment) - - - - 98 Other donations - 3 - 3 3 ______- 3 - 3 26,153 ______

The Academy inherited the premises and contents of the predecessor school on 1 September 2010. The land and buildings are held on a 3 year lease from Derbyshire County Council, with a rental of one peppercorn a year to be paid. The accounts show a notional rental charge of £- (2013: £98,000) for the buildings based on building valuations compiled by the Valuation Office Agency. The notional rent was apportioned for the period 1 September 2012 to 31 March 2013 when the Academy transferred into its new premise.

In April 2013 the Academy moved into its new premise under a 125 year operating lease with Derbyshire County Council, with an annual rental of one peppercorn. The estimated useful life of the property is 40 years and therefore the academy is required to treat the property as a donation through the SOFA and an asset of the balance sheet. The property donation has been valued at cost at £25,450,000 less the academy’s contribution of £89,941, whilst the fixtures, fittings and furniture have a value of £692,000 of which £523,000 have been capitalised and the remainder included as a cost in the SOFA.

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2014

4. ACTIVITIES FOR GENERATING FUNDS

Unrestricted Restricted 2014 2013 Funds Fund Total Total £000 £000 £000 £000

Hire of Facilities 1 31 32 8 Catering Income - - - 12 Uniform sales 10 - 10 6 ______

11 31 42 26 ______

5. INVESTMENT INCOME

Unrestricted Restricted 2014 2013 Funds Fund Total Total £000 £000 £000 £000

Bank interest received 26 73 99 102 ______

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2014

6. FUNDING FOR ACADEMY’S EDUCATIONAL OPERATIONS

Total Total Unrestricted Restricted Funds Funds Funds Fund 2014 2013 £000 £000 £000 £000 DfE / EFA capital grant Devolved Formula Capital allocations - 16 16 16 ______

- 16 16 16 ______

DfE / EFA revenue grants General Annual Grant (GAG) (note 2) - 4,178 4,178 4,128 Start-up Grants - 179 179 204 Other DfE / EFA grants - 346 346 286 ______

- 4,703 4,703 4,618 ______Other Government Grants Extended Schools programme - 19 19 - SEN from LA - 98 98 256 Special Education Projects 4 51 55 40 ______

4 168 172 296 ______

______

Total grant funding 4 4,887 4,891 4,930 ______Other incoming resources Academy trips - 30 30 19 Property recharges 3 139 142 105 Post 16 funding - 37 37 68 Sundry income 74 303 377 69 ______

77 509 586 261 ______

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2014

7. RESOURCES EXPENDED

Staff Premises Other Total Total Costs Costs Costs 2014 2013 £000 £000 £000 £000 £000

Cost of generating voluntary income Investment management costs - - 39 39 38 ______

Academy’s educational operations Direct costs 3,159 758 895 4,812 4,043 Allocated support costs 679 339 448 1,466 1,537 ______

3,838 1,097 1,343 6,278 5,580

Governance costs including allocated support costs - - 18 18 37 ______

3,838 1,097 1,400 6,335 5,655 ______

Net (incoming) / outgoing resources for the year include

2014 2013 £000 £000

Operating leases 25 18 Fees payable to auditor – Audit 12 19 Fees payable to auditor – Accounts preparation 2 - Fees payable to auditor – Other 1 2 Loss on disposal of fixed assets 1 12 Depreciation of owned assets 925 419 ______

966 470 ______

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2014

8. CHARITABLE ACTIVITIES – ACADEMY’S EDUCATIONAL OPERATIONS

Unrestricted Restricted Total Funds Total Funds Funds Funds 2014 2013 £000 £000 £000 £000 Direct costs Teaching and education support staff costs 61 3,098 3,159 2,936 Depreciation - 758 758 354 Educational supplies 1 302 303 338 Examination fees - 50 50 69 Staff development - 77 77 72 Other direct costs 10 455 465 274 ______

72 4,740 4,812 4,043 ______

Allocated support costs Support staff costs - 678 678 540 Depreciation - 167 167 65 Recruitment and support - 44 44 66 Redundancy payments - 1 1 95 Maintenance of premises and equipment - 65 65 340 Cleaning - 21 21 26 Rent and rates, heat & Light - 164 164 115 Insurance - 47 47 43 Security and transport - 32 32 27 Catering - 129 129 134 Bank interest and charges - 1 1 32 Other support costs - 117 117 54 ______

- 1,466 1,466 1,537 ______

______

Academy’s educational operations 72 6,206 6,278 5,580 ______

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2014

9. GOVERNANCE COSTS Unrestricted Restricted Total Funds Total Funds Funds Funds 2014 2013 £000 £000 £000 £000 Legal and professional fees - 3 3 16 Auditor’s remuneration - Audit of financial statements - 12 12 18 - Responsible officer audit - 1 1 1 - Accounts preparation - 2 2 2 ______

- 18 18 37 ______

10. STAFF COSTS AND EMOLUMENTS

Total staff costs were as follows:

2014 2013 £000 £000 Wages and salaries 3,108 2,873 Social security costs 228 217 Other pension costs 501 386 ______

3,837 3,476 Redundancy payments 1 95 Supply staff costs - - ______

3,838 3,571 ______Particulars of employees: The average number of employees during the year (including senior management team), calculated on the basis of full-time equivalents was as follows:

2014 2013 Charitable activities No No Teachers 45 43 Administration and support 43 39 Management 9 9 ______

97 91 ______

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2014

10. STAFF COSTS AND EMOLUMENTS CONTINUED

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

2014 2013 No No £60,000 to £69,999 4 4 £70,000 to £79,999 - 1 £80,000 to £89,999 1 - £110,000 to £119,999 - 1 £140,000 to £149,999 1 - ______

6 6 ______

Five (2013: five) of the above participated in the Teachers’ Pension Scheme. During the year ended 31 August 2014, pension contributions for these staff amounted to £52,515 (2013: £47,652) and one (2013: one) participated in the Local Government Pension Scheme and the pension contribution was £7,665 (2013:£ 6,758)

11. GOVERNORS’ REMUNERATION AND EXPENSES

The Principal and Staff Governors only receive remuneration in respect of services they provide undertaking the roles of Principal and staff and not in respect of their services as Governors. Other Governors did not receive any payments, from the Academy in respect of their role as Governors. The value of staff Governor's remuneration (which includes employer’s pension contribution)

J Bloor (Principal) £145,000 - £150,000 (2013: £115,000 - £120,000) N Heathcote (resigned 6/6/14) £30,000 – 35,000* (2013: £45,000 - £50,000) D McBroom (resigned 6/6/14) £10,000 - £15,000* (2013: £10,000 - £15,000) B Rogers (resigned 11/12/13) £-* (2013: £15,000 - £20,000) M Mitton (resigned 6/6/14) £5,000 - £15,000 * (2013: £-) *Apportioned for time of service as governor

During the year ended 31 August 2014, no travel and subsistence expenses were reimbursed to Governors (2013: none).

Related party transactions involving the Trustees are set out in note 27.

In accordance with normal commercial practice the Academy has purchased insurance to protect Governors and officers from claims arising from negligent acts, errors or omissions occurring whilst on Academy business. The insurance provides cover up to £2,000,000 on any one claim and the cost for the year ended 31 August 2014 was £1,540 (2013 - £1,442).

The cost of this insurance is included in the total insurance cost.

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2014

12. TANGIBLE FIXED ASSETS Assets Fixtures & Computer Motor Leasehold Under fittings equipment Vehicles land and Total Construction buildings £000 £000 £000 £000 £000 £000 Cost At 1 September 2013 - 892 213 62 25,450 26,617 Additions 505 87 77 - - 669 Disposal - - (11) - - (11) Transfer ------______

At 31 August 2014 505 979 279 62 25,450 27,275 ______

Depreciation At 1 September 2013 - 92 91 20 266 469 Charge for the year - 226 51 12 636 925 On disposal - - (7) - - (7) ______

At 31 August 2014 - 318 135 32 902 1,387 ______Net book value At 31 August 2014 505 661 144 30 24,548 25,888 ______

At 1 September 2013 - 800 122 42 25,184 26,148 ______

13. INVESTMENTS Movement in market value Cash on 2014 2013 Unit Trust Deposit Total Total £000 £000 £000 £000 Market value at 1 September 2013 2,148 287 2,435 2,134 Acquisitions at cost 11 - 11 64 Revaluation Gain in year 156 - 156 298 Withdrawals (39) (217) (256) (61) ______

Market value at 31 August 2014 2,276 70 2,346 2,435 ______

Of the total amount invested £2,221,000 (2013: £2,304,000) relates to the Endowment Fund, which is held on trust to be retained for the benefit of the Academy as a capital fund and £125,000 (2013: £131,000) relates to the restricted general fund. The Academy has no subsidiary companies.

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2014

14. DEBTORS 2014 2013 £000 £000 Trade debtors 44 2 Prepayments and accrued income 151 82 Sundry debtors 75 34 VAT recoverable 69 29 Amounts owed by related parties 28 56 ______

367 203 ______

15. CREDITORS: Amounts falling due within one year

2014 2013 £000 £000 Trade creditors 132 74 Taxation and social security 141 63 Other creditors 83 85 Accruals and deferred income 224 117 Amounts owed to related parties 190 140 ______

770 479 ______

Deferred income 2014 2013 £000 £000 Deferred income at 1 September 2013 - - Resources deferred in the year - - Amounts released from previous years - - ______

Deferred income at 31 August 2014 - - ______

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2014

16. FUNDS Balance at 1 Incoming Resources Gains, losses Balance at 31 September resources expended & transfers August 2014 2013 £000 £000 £000 £000

Restricted general funds General annual grant 461 4,177 (4,096) (77) 465 Start-up grant 399 179 - (496) 82 Other DfE / EFA grants - 463 (457) 31 37 LEA and other grants - 149 (149) - - Other restricted 411 319 (517) 294 507 ______

1,271 5,287 (5,219) (248) 1,091 ______

Pension reserve (1,057) - (80) (105) (1,242) ______

Restricted fixed asset funds DfE / EFA Capital grants 80 16 - (16) 80 Capital expenditure from GAG 505 - (246) 664 923 Sponsorship fixed asset fund - 200 - (200) - Donated assets 25,564 - (679) - 24,885 ______

26,149 216 (925) 448 25,888 ______

Endowment funds 2,304 - (39) (44) 2,221 ______

Total restricted funds 28,667 5,503 (6,263) 51 27,958 ______

Unrestricted funds General fund 108 118 (72) - 154 ______

Total unrestricted funds 108 118 (72) - 154 ______

______

Total funds 28,775 5,621 (6,335) 51 28,112 ______

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2014

16. FUNDS CONTINUED

Restricted fixed asset funds were mainly funded by the Government capital grant and a gross transfer from restricted funds to restricted fixed asset funds of £453,000 (2013: £317,000) was made during the year. In addition to this, £200,000 was transferred from excess funds held in the Endowment Fund to support the construction of the new facilities. During 2013 assets valued at £25,883,000 were included as a voluntary donation during the year in respect of assets acquired under long term lease from Derbyshire County Council (DCC). The General Annual Grant must be used for the normal running costs of the Academy. The Academy is allowed to carry forward up to 12% of the current GAG. Of the carried forward amount up to 2% of GAG can be used for general purposes at the discretion of the Academy, but any balance over 2% must be used for capital purposes. The Start Up Grant ‘A’ is funding provided to meet the expenditure of providing basic stocks of teaching and learning materials. The Start-Up Grant ‘B’ is to be used to support senior management and staffing costs during the initial start-up period until the pupil numbers increase. The second part of the Start Up Grant ‘B’ is intended to provide funds to support the additional costs incurred during the period of the construction of the new building. At the end of the start up period, any remaining start up grant will be transferred to GAG and subject to the limits imposed above. The main income within ‘other restricted funds’ is the Pupil Premium, this addresses the current underlying inequalities between children eligible for free school meals (FSM) and their wealthier peers by ensuring that funding to tackle disadvantage reaches the pupils who need it most. This also includes the notional rent relating to the existing school premises which is treated as a voluntary donation. The Academy has set up a designated capital fund as required by the contract with DCC in order to allow for repairs and maintenance and future refurbishments to the property, this represents £250,000 of the ‘Other restricted reserve’ (2013: £200,000). The Academy also has a designated fund relating to the refresh of IT equipment, this is held by Derbyshire County Council in a ring fenced interest bearing bank account. The fund is being held for the renewal of IT equipment and represents £75,000 (2013: £Nil) of the total funds. The Endowment fund is a restricted fund, which is held on trust to be retained for the benefit of the Academy Trust as a capital fund. The income is also classified as restricted as it can only be expended for the specific purpose of Shirebrook Academy Endowment Fund’s objectives.

17. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestricted Restricted Restricted general general fixed asset Endowment Total fund fund fund fund 2014 £000 £000 £000 £000 £000 Tangible fixed assets - - 25,888 - 25,888 Investments - 125 - 2,221 2,346 Current assets 154 1,736 - - 1,890 Current liabilities - (770) - - (770) Pension scheme liability - (1,242) - - (1,242) ______

Total net assets 154 (151) 25,888 2,221 28,112 ______

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2014

18. CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES

At the balance sheet date the Academy was part way through a commitment to build an additional building on its existing premise in order to expand the teaching and 6th form area. The overall cost is forecast to be £597,236 of which £515,603 has been included within the financial statements, as this represents the current stage of completion of the building. The Academy has a commitment therefore for the additional £82,633 remaining to complete the project

The Academy has a commitment under the lease agreement with Derbyshire County Council to provide a fund to help towards refurbishment and repairs to the leasehold property, the Trustees have set up a designated fund for this purpose and has currently set aside £250,000 (2013: £200,000 ) which is included within other restricted reserves.

There were no other capital commitments during 2014 or 2013

19. FINANCIAL COMMITMENTS

Operating leases At 31 August 2014 the Academy had annual lease commitments under non-cancellable operating leases as follows 2014 2013 £000 £000 Office equipment Expiring within one year - - Expiring within two and five years inclusive 25 24 Expiring in over five years - - __ __

25 24 __ __

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2013

20. RECONCILIATION OF OPERATING (DEFICIT) / SURPLUS TO NET CASH INFLOW FROM OPERATING ACTIVITIES 2014 2013 £000 £000 Surplus on continuing activities (714) 25,817 Depreciation (note 12) 925 419 Interest received (99) (102) Capital grants from DfE and other capital income (216) (44) (Increase) / decrease in debtors (164) (120) Increase / (decrease) in creditors 291 (110) (Loss) / Profit on disposal of tangible fixed assets (1) 12 FRS 17 pension cost less contributions payable (note 26) 44 12 FRS 17 pension finance income (note 26) 36 31 Amounts expended from income from investments - 5 Investment management costs 39 38 Donation of property, fittings and fixtures - (25,883) ______

Net cash inflow/(outflow) from operating activities 141 75 ______21. RETURNS ON INVESTMENTS AND SERVICING OF FINANCE 2014 2013 £000 £000 Interest received in endowment - 5 Interest received 88 38 __ __

Net cash inflow from returns on investments and servicing of finance 88 43 __ __ 22. CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT 2014 2013 £000 £000 Purchase of tangible fixed assets (669) (236) Capital grants from DfE / EFA 16 16 Capital funding received from sponsor and others 200 28 Withdrawal from Endowment Fund 217 13 Proceeds from disposal of fixed assets 5 - ______

Net cash outflow from capital expenditure and financial investment (231) (179) ______23. FINANCING 2014 2013 £000 £000 Endowment fund donation from endowment sponsor - - ______Net cash inflow from financing - - ______

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2014

24. ANALYSIS OF CHANGES IN NET FUNDS At 1 At 31 September August 2013 Cash flows 2014 £000 £000 £000 Cash in hand and at bank 1,525 (2) 1,523 ______

1,525 (2) 1,523 ______

25. COMPANY LIMITED BY GUARANTEE

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

26. PENSION COMMITMENTS

The Academy’s employees belong to two principal pension schemes: the Teachers’ Pension Scheme England and Wales (TPS) for academic and related staff; and the Local Government Pension Scheme (LGPS) for non-teaching staff, which is managed by Derbyshire County Council. Both are defined-benefit schemes. The pension costs are assessed in accordance with the advice of independent qualified actuaries. The latest actuarial valuation of the TPS was 31 March 2004 and of the LGPS 31 March 2013. Pension commitments of £60,259 (2013: £49,131) are included in creditors.

Teachers’ Pension Scheme

Introduction

The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers' Pensions Regulations (2010) and from 1 April 2014, by the Teachers’ Pension Scheme Regulations 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 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 along with those made by employers are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by parliament

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

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2014

26. PENSION COMMITMENTS CONTINUED

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 Service Pensions (Valuations and Employer Cost Cap) Directions 2014. The valuation report was published by the Department 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 from September 2015.

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

Teachers’ Pension Scheme Changes

Lord Hutton published his final report in March 2011 and made recommendations about how pensions can be made sustainable and affordable, whilst remaining fair to the workforce and the taxpayer. The Government accepted Lord Hutton’s recommendations as the basis for consultation and Ministers engaged in extensive discussions with trade unions and other representative bodies on reform of the TPS. Those discussions concluded on 9 March 2013 and the Department published a Proposed Final Agreement, setting out the design for a reformed TPS to be implemented from 1 April 2015.

The key provisions of the reformed scheme include: a pension based on career average earnings; an accrual rate of 1/57th; and a Normal Pension Age equal to State Pension Age, but with options to enable members to retire earlier or later than their Normal Pension Age. Importantly, pension benefits built up before 1 April 2015 will be fully protected.

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2013

26. PENSION COMMITMENTS CONTINUED

In addition, the Proposed Final Agreement includes a Government commitment that those within 10 years of Normal Pension Age on 1 April 2012 will see no change to the age at which they can retire, and no decrease in the amount of pension they receive when they retire. There will also be further transitional protection, tapered over a three and a half year period, for people who would fall just outside of the 10 year protection.

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

The Department for Education has continued to work closely with trade unions and other representative bodies to develop the reformatted Teachers’ Pension Scheme and regulations giving effect to it came into force on 1 April 2014. 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 the scheme. Accordingly, the academy has taken advantage of the exemption in FRS 17 and has accounted for its contributions to the scheme as if it were a defined contribution scheme. The academy has set out above the information available on the scheme.

Local Government Pension Scheme

The Academy is one of several employing bodies included within the Local Government Pension Scheme (LGPS).

The LGPS is a funded defined-benefit scheme, with the assets held in separate trustee-administered funds. Contributions to the scheme are determined by a qualified actuary on the basis of triennial valuations using the projected unit method. The total contribution made for the year ended 31 August 2014 was £171,476 (2013: £133,914), of which employer’s contributions totalled £127,989 (2013: £97,432) and employees’ contributions totalled £43,487 (2013: £36,482). The agreed contribution rates for future years are 11.3% for employers and 5.5% to 12.5% for employees.

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

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2014

26. PENSION COMMITMENTS CONTINUED

Principal Actuarial Assumptions

2014 2013 Rate of increase in salaries 3.5% 5.10% Rate of increase for pensions in payment / inflation 2.7% 2.80% Discount rate for scheme liabilities 3.7% 4.60% Inflation assumption (CPI) 2.4% 2.9% Commutation of pensions to lump sums pre April 2008 service 50% 50% Commutation of pensions to lump sums post April 2008 service 75% 50%

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

2014 2013 Retiring today Males 22.0 22.1 Females 24.2 24.7

Retiring in 20 years Males 24.1 23.9 Females 26.6 26.7

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

Expected Fair value Expected Fair value Return at 31 at 31 Return at 31 at 31 August August August August 2014 2014 2013 2013 £000 £000 Equities 6.4% 877 6.6% 833 Government Bonds 3.2% 242 3.7% 217 Property 4.5% 64 4.7% 60 Cash 3.3% 89 3.6% 96 ______

Total market value of assets 1,272 1,206 Present value of scheme liabilities - Funded (2,514) (2,263) ______

Deficit in the scheme (1,242) (1,057) ______

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2014

26. PENSION COMMITMENTS CONTINUED

The expected rate of return is the assumed return the assets that the fund will achieve over the entire life of the related obligation based on market expectations at the beginning of the period. This assumption is used to determine the expected return on assets for the pension expense.

The actual return on scheme assets was £140,000 (2013: £141,000)

Amounts recognised in the statement of financial activities 2014 2013 £000 £000 Current service cost (net of employee contributions) 164 111 Past service cost - - Curtailments and settlements - 3 ______

Total operating charge 164 114 ______Analysis of pension finance income / (costs)

Expected return on pension scheme assets (72) (54) Interest on pension liabilities 108 85 ______

Pension finance costs 36 31 ______

The actual gains and losses for the current year are recognised in the statement of financial activities. The cumulative amount of actuarial gains and losses recognised in the statement of financial activities since the adoption of FRS 17 is a £408,000 loss (2013: £303,000 loss).

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

2014 2013 £000 £000 At 1 September 2,263 1,822 Current service cost 164 111 Interest cost 108 85 Employee contributions 43 36 Actuarial (gain)/loss (36) 225 Curtailments and settlements - 3 Benefits paid (28) (19) ______

At 31 August 2,514 2,263 ______

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2014

26. PENSION COMMITMENTS CONTINUED

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

2014 2013 £000 £000 At 1 September 1,206 946 Expected return on plan assets 72 54 Actuarial gain (141) 87 Employer contributions 120 102 Employee contributions 43 36 Assets distributed on settlements - - Transfer in of new members - - Benefits paid (28) (19) ______

At 31 August 1,272 1,206 ______

The estimated value of employer contributions for the year ended 31 August 2015 is £142,000 (2014: £123,000).

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

2014 2013 2012 2011 £000 £000 £000 £000

Present value of defined benefit obligations (2,514) (2,263) (1,822) (1,452)

Fair value of share of scheme assets 1,272 1,206 946 771 ______

Deficit in the scheme (1,242) (1,057) (876) (681) ______

Experience adjustments on share of scheme assets (141) 87 18 2

Experience adjustments on scheme liabilities (28) 0 0 0

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

MANAGEMENT INFORMATION

YEAR ENDED 31 AUGUST 2014

27. GOVERNORS REMUNERATION AND RELATED PARTY TRANSACTIONS

During the year Governors remuneration of £224,412 (2013: £196,671) of which, pension contributions of £27,333 (2013: £23,508) were paid.

There were no (2013: no) expenses reimbursed to Governors during the period except in their capacity as employees £731 (2013: £376)

No (2013: no) Governor or other person related to the Charity had any personal interest in any contract or transaction entered into by the Charity during the year.

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

The Principal Sponsor of Shirebrook Academy is ALLRoads, a DLO of Derbyshire County Council (DCC). During the year, DCC (as the Local Education Authority) paid the Academy £98,000 (2013: £256,000) in grants for SEN funding and Schools Standards Fund, and £5 (2013: £57,938) in other grants and recharges. DCC charged the Academy £367,998 (2013: £410,661) for various traded services (including for the provision of Human Resources and payroll services, catering and free school meals, ICT Managed Services, etc.). The Property Services department of DCC invoiced the Academy £350 (2013: £5,467) for site maintenance and the Academy paid DCC £171,475 (2013: £133,916) for employee and employer contributions to the Local Government Pensions Scheme. At the balance sheet date £189,554 (2013: £140,000) was owed to DCC by the Academy.

During the year the Academy recognised recharges to Stubbin Wood School (A DCC School) relating to the shared occupation of the site at Common Lane of £128,562 (2013: £105,459). The balance outstanding by Stubbin Wood School at the balance sheet date was £23,748 (2013: £43,903) These transactions were all made on an arm’s length basis.

The academy also recognised recharges to The Park Federation (£421 (2013: £nil)) and The Meadows Community School (£47,649 (2013: £nil)) which are both local authority schools. The balance owed to the academy at the balance sheet date was; The Park Federation £221 (2013: nil), The Meadows Community School £4,250 (2013: nil).

28. CONTROLLING PARTY

The Academy is controlled by its principal sponsor, ALLRoads, a Direct Labour Organisation of Derbyshire County Council.

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

DETAILED STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 AUGUST 2014

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

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SHIREBROOK ACADEMY COMPANY LIMITED BY GUARANTEE

DETAILED STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 AUGUST 2014

2014 2013 £000 £000

Income DfE / EFA General Annual Grant (GAG) 4,178 4,146 DfE / EFA Start Up Grant 179 204 DfE / EFA capital grant 16 16 Other DfE / EFA grants 346 268 Other government grants 172 296 Voluntary income 3 26,153 Investment income 99 102 Endowment funds - - Activities for generating funds 42 26 Other income 586 261 ______

TOTAL INCOMING RESOURCES 5,621 31,472 ______

Expenditure Staff costs 3,838 3,476 Non pay expenditure - Premises 172 382 - Supplies and services - - - Other 1,400 1,378 Depreciation 925 419 ______

TOTAL RESOURCES EXPENDED 6,335 5,655 ______

Net income for the year (714) 25,817 ______

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