Registered number: 07552498
CAMBRIDGE MERIDIAN ACADEMIES TRUST (A company limited by guarantee)
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2015 CAMBRIDGE MERIDIAN ACADEMIES TRUST (A company limited by guarantee)
CONTENTS
Page
Reference and administrative details of the trust, its members/trustees and advisers 1 - 3
Trustees' report 4 - 10
Governance statement 11 - 15
Statement on regularity, propriety and compliance 16
Trustees' responsibilities statement 17
Independent auditors' report 18 - 19
Independent reporting accountant's assurance report on regularity 20 - 21
Statement of financial activities 22 - 23
Balance sheet 24 - 25
Cash flow statement 26
Notes to the financial statements 27 - 52 CAMBRIDGE MERIDIAN ACADEMIES TRUST (A company limited by guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE TRUST, ITS MEMBERS/TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2015
Trustees and members S Jamieson, Chair of Trustees J Hall M Woods, Executive Principal and Accounting Officer M Fox J Handy D Ruddy M Squires A Hardy L Birch
Company registered number
07552498
Principal and registered office
Gibraltar Lane, Swavesey, Cambridgeshire, CB24 4RS
Company secretary
Stone King LLP
Executive principal
M Woods
Senior management teams
Cambridge Meridian Academies Trust: M Woods, Executive Principal Dr I McEwan, Chief Operating Officer M Sampson, Trust Network Manager L Daniel, Vice Principal R Spencer, Vice Principal (School Improvement)
Swavesey Village College: A Daly, Principal J Parris, Deputy Principal J Stavrou, Deputy Principal S Gent, Assistant Principal R Davies, Assistant Principal H Turner, Assistant Principal A Karia, Assistant Principal D Wallace, Assistant Principal (appointed 01/09/2015) M Wyatt, Assistant Principal S Russell, Director of School and Community Sport
Page 1 CAMBRIDGE MERIDIAN ACADEMIES TRUST (A company limited by guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE ACADEMY, ITS MEMBERS/ TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2015
Administrative details (continued)
Nene Park Academy: S Howard, Principal M Petersen, Vice Principal L Mawby, Vice Principal (appointed 14/10/2015) E Elliott, Vice Principal G Fullard, Assistant Principal M Albinson, Assistant Principal L Pritchard, Assistant Principal K Ainslie, Assistant Principal L Bryan, Assistant Principal A Oleksow, Assistant Principal K Hartley, Assistant Principal
North Cambridge Academy: M Campbell, Principal S Fox, Deputy Principal S Pattison, Assistant Principal N Smith, Assistant Principal
West Town Primary Academy: J Dooley, Principal H Quinn, Deputy Principal R Cruise, Assistant Principal K Bacon, Assistant Principal E Houlton, Assistant Principal
Stamford Welland Academy: A Partington, Principal J Chong, Vice Principal S Cooper, School Business Manager S Alam, Senior Assistant Principal J Nolan, Assistant Principal A Wallis, Assistant Principal H Twigger, Assistant Principal (appointed 01/09/2015) S Bull, Associate Assistant Principal T Hayes, Associate Assistant Principal
Sawtry Village Academy: S Shaw-Wilson, Principal S Parsons, Deputy Principal P Baynes, Assistant Principal D Bridgeman, Assistant Principal J Jones, Assistant Principal N Wilson, Assistant Principal K Hicks, Assistant Principal (appointed 01/09/2015) H Forreser, Assistant Principal
Independent auditors
Larking Gowen, King Street House, 15 Upper King Street, Norwich, NR3 1RB
Page 2 CAMBRIDGE MERIDIAN ACADEMIES TRUST (A company limited by guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE ACADEMY, ITS MEMBERS/ TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2015
Administrative details (continued)
Bankers
Barclays Bank plc, Huntington, PE29 3AE
Solicitors
Stone King LLP, Thirty Station Road, Cambridge, CB1 2RE
Page 3 CAMBRIDGE MERIDIAN ACADEMIES TRUST (A company limited by guarantee)
TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2015
The trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the audited financial statements and auditors' report of Cambridge Meridian Academies Trust for the year ended 31 August 2015. The trustees confirm that the annual report and financial statements of the trust comply with the current statutory requirements, the requirements of the trust's governing document and the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" issued in March 2005. The annual report serves the purposes of both a trustees' report and a directors' report under company law.
Structure, governance and management a. CONSTITUTION
The trust is a company limited by guarantee and an exempt charity. The charitable company's Memorandum and Articles of Association (updated 17 March 2014) are the primary governing documents of the trust. The trustees of Cambridge Meridian Academies Trust are also the directors of the charitable company for the purposes of company law. The charitable company is known as Cambridge Meridian Academies Trust.
Details of the trustees who served during the year are included in the reference and administrative details on page 1. b. MEMBERS' LIABILITY
Each member of the charitable company undertakes to contribute to the assets of the charitable company in the event of it being wound up while they are a member, or within one year after they cease to be a member, such amount as may be required, not exceeding £10, for the debts and liabilities contracted before they ceased to be a member. c. TRUSTEES' INDEMNITIES
The trust is in the process of purchasing insurance to cover trustees, governors and officers from claims arising from negligent acts, errors or omissions occurring while on trust business. d. PRINCIPAL ACTIVITIES
The trust operated six academies in the financial year, Swavesey Village College (SVC), Nene Park Academy (NPA), North Cambridge Academy (NCA), West Town Primary Academy (WTPA), Stamford Welland Academy (SWA) since 1 October 2014 and Sawtry Village Academy (SVA) since 1 April 2015.
Page 4 CAMBRIDGE MERIDIAN ACADEMIES TRUST (A company limited by guarantee)
TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2015
e. METHOD OF RECRUITMENT AND APPOINTMENT OR ELECTION OF TRUSTEES
The number of trustees shall be not less than three but not subject to any maximum. The company shall have the following trustees:
(a) The Executive Principal of Cambridge Meridian Academies Trust (b) Up to eight community trustees (b) Up to five education trustees, and (d) A minimum of two parent trustees if appointed pursuant to Articles 53 55, unless there are Local Governing Bodies or Advisory Bodies which include at least two parent members.
The trustees may appoint up to two Co opted trustees.
In certain circumstances the Secretary of State has the power to appoint trustees.
The Members may elect:
- the community trustees. The community trustees shall be drawn from the communities served by the academies. - the education trustees. The education trustees shall have a background in education. - the community trustees and the education trustees through such process as they may determine.
The total number of trustees (including the Executive Principal) who are employees of the trust shall not exceed one third of the total number of trustees. f. POLICIES AND PROCEDURES ADOPTED FOR THE INDUCTION AND TRAINING OF TRUSTEES
The training and induction provided for new trustees will depend on their existing experience; an induction pack is given to all trustees. During the year, the trust has subscribed to the Governing Bodies Training Programme provided by the local authority; the National Governors Association and the Specialist Schools Academies Trust. All trustees are provided with copies of policies, procedures, minutes, accounts, budgets, plans and any other documents that they will need to undertake their role as trustees. As there are normally only two or three new trustees a year, induction tends to be done informally and is tailored specifically to the individual. g. ORGANISATIONAL STRUCTURE
A clear management structure exists to effectively manage the trust. The structure now consists of four levels, the trustees, the local governing bodies (LGB), the trust executive and the academy senior leadership teams (SLT). The aim of the management structure is to devolve responsibility and encourage involvement in decision making at all levels.
The trust is responsible for strategic direction and planning, approving the academies budgets, monitoring individual academy performance and making major decisions about the direction of the trust. The local governing bodies are responsible for setting individual school policy, approving the school development plan and staff appointments.
The trust executive team consists of the CEO, COO, trust finance managers, trust site manager and trust IT director.
The senior leadership teams comprise of the Principal, Deputy Principals and Assistant Principals. These managers control each academy at an executive level implementing the policies laid down by the trust. As a group, the senior leadership teams are responsible for the authorisation of spending within agreed budgets and the appointment of staff.
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TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2015
h. RISK MANAGEMENT
The trust has assessed the major risks to which it is exposed, in particular those relating to the specific teaching, provision of facilities and other operational areas of the trust, and its finances, all of which are outlined on the risk register. The trustees/governors have implemented a number of systems to assess the risks that each academy faces, especially in the operational areas (e.g. in relation to teaching, health and safety, bullying and school trips) and in relation to the control of finance. They have introduced systems, including operational procedures (e.g. vetting of new staff and visitors, supervision of school grounds) and internal financial controls in order to minimise risk. Where significant financial risk still remains, they have ensured that they have adequate insurance cover. The trust has an adequate system of internal financial controls and this is explained in more detail in the statement on internal control.
Objectives and Activities a. OBJECTS AND AIMS
The trust’s object is specifically restricted to the following:
To advance for the public benefit education in the United Kingdom, in particular but without prejudice to the generality of the foregoing by establishing, maintaining, carrying on, managing and developing schools offering a broad and balanced curriculum.
To promote for the benefit of the inhabitants of the areas in which the academies are located and the surrounding areas the provision of facilities for recreation or other leisure occupation of individuals who have need of such facilities by reason of their youth, age infirmity or disablement, financial hardship or social and economic circumstances or for the public at large in the interests of social welfare and with the object of improving the condition of life of the said inhabitants. b. OBJECTIVES, STRATEGIES AND ACTIVITIES
It is the belief of the trust that the individual needs of every student should lie at the heart of any education system.
The trust equips, enables and encourages the students to achieve their very best. The trust wants them to be successful learners, confident individuals and responsible citizens.
The trust aims to accomplish this by keeping every single one of the young people at the very core of the trust’s work.
As part of the CMAT family, the academies pool expertise and resources, think more strategically and work more confidently and imaginatively; providing collectively a higher quality education than could be achieved individually.
The hard endeavour and outstanding dedication of the staff has been vital to what has been achieved. The students and their families have been hugely supportive of the changes.
The trust is exceptionally proud of the achievements so far, but it is also looking to the future. There is an exciting opportunity for the trust at Northstowe and the trustees are confident that further opportunities will come that enhance the capacity and expertise of the trust’s family of schools.
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TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2015
In the end though, what matters most is the quality of the education the students receive. The trustees are proud that the trust has built an environment which enables the students to learn well, to be receptive to the excellent teaching provided and, most of all, to flourish.
The full CMAT annual review is at www.cmaTrust.net. The trust is particularly proud of the following:
1) The rapid improvement at Stamford Welland Academy reflected in student outcomes and relevant Ofsted inspection documentation.
2) CMAT academies have continued to take a leading role in key organisations such as Whole Education, the SSAT and in supporting many LA projects to further school improvement in the areas we serve.
3) North Cambridge Academy was judged “good” with “outstanding” leadership and management by Ofsted.
4) All progress measures at West Town Primary Academy are in the top 15% of schools nationally.
5) The Financial Notice to Improve has been removed from Sawtry Village Academy.
6) The value for money provided by the skilful management of the extension programme at Swavesey Village College.
7) Nene Park Academy being full with students from the community it serves who selected this school as their first choice for secondary education. c. ACTIVITIES FOR ACHIEVING OBJECTIVES
CMAT and SVC maintained an excellent track record in providing support for Local Authorities and schools often through Teaching Schools Alliance initiatives. In recognition of our commitment to system led improvement, Ofsted have taken a CMAT Senior Leader onto an innovative collaborative project to increase our capacity to undertake school to school support projects. With the backdrop of the acknowledged unfair Cambridgeshire funding, CMAT has continued to thrive. In its first inspection since joining the trust, NPA was rated "Good" by Ofsted. d. PUBLIC BENEFIT
The charitable company's aims are set out in this report. The trustees have complied with their duty to have due regard to guidance on public benefit published by the Charity Commission in exercising their powers or duties.
Strategic report
Achievements and performance a. GOING CONCERN
After making appropriate enquiries, the board of trustees has a reasonable expectation that 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 Accounting Policies.
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TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2015
b. KEY FINANCIAL PERFORMANCE INDICATORS
The board of trustees continues to use both financial and non financial key performance indicators to manage the trust. The trust maintains a strong management information function which is focused on regular and accurate reporting including the issue of termly financial information to the trust inclusive of a financial commentary. Financial KPIs are measured continuously and the trust was successful in delivering its financial surplus in the year. c. FINANCIAL REVIEW
Most of the trust’s income is obtained from the Education Funding Agency (EFA) in the form of recurrent grants, the use of which is restricted to particular purposes. These grants received from the EFA during the year ended 31 August 2015 and the associated expenditure are shown as restricted funds in the Statement of Financial Activities.
The trust has also been in receipt of capital grants from the EFA through the bid process for Capital Maintenance Fund. In accordance with the Charities Statement of Recommended Practice, ‘Accounting and Reporting by Charities’ (SORP 2005), such grants are shown in the Statement of Financial Activities as restricted income in the fixed asset fund. The restricted fixed asset fund balance is reduced by annual depreciation charges over the expected useful life of the assets concerned.
During the year ended 31 August 2015, total expenditure of £24,719,009 was more than covered by recurrent grant funding from the EFA together with other incoming resources. The excess of income over expenditure for the year (excluding pension funds, assets and liabilities transferred on schools joining the trust and restricted fixed asset funds movements) was £428,404.
At 31 August 2015, the net book value of fixed assets was £28,713,574 and movements in tangible fixed assets are shown in the note 17 to the financial statements. The assets were used exclusively for providing education and the associated support services to the pupils of the Trust. d. INVESTMENT POLICY AND PERFORMANCE
During this year, the trust has held all its funds in an interest bearing current account.
Page 8 CAMBRIDGE MERIDIAN ACADEMIES TRUST (A company limited by guarantee)
TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2015
Financial review a. FINANCIAL AND RISK MANAGEMENT OBJECTIVES AND POLICIES
The trust’s main source of income is funding from the EFA that is paid monthly to the academies throughout the year. Given this and the planned reserves at each academy the trust board do not consider they have a cash flow or liquidity risk. b. PRINCIPAL RISKS AND UNCERTAINTIES
The trust board has considered and agreed an on going risk register. The trust board considers the principle risks and uncertainties are regarding changes in funding levels, the inherited declining rolls at Sawtry and Stamford and the actions of Cambridgeshire LA with regard to places planning in the north of Cambridge. All schools aim to maximise the recruitment and retention of students and the trust board seeks to ensure maximum funding is received. c. RESERVES POLICY
The trustees will review the reserve levels of the trust in accordance with the trust reserves policy. This review encompasses the nature of income and expenditure streams, the need to match income commitment and the nature of reserves.
Trustees determine what the level of uncommitted reserves should be. The aim is to provide sufficient working capital to cover delays between spending and receipt of grants and to provide a cushion to deal with unexpected emergencies such as urgent maintenance.
At 31 August 2015 the trust had revenue reserves of £2,508,879 (split between restricted & unrestricted).
The pension reserve is in deficit due to the trust‘s share of the Local Government Pension Scheme (LGPS) liabilities exceeding its share of the assets.
Plans for future periods a. FUTURE DEVELOPMENTS
The trust is keen to explore and develop partnership models, including inviting good or outstanding schools to share in its family of schools, to work with the trust to share best practice and increase the individual and collective school improvement capacity.
FUNDS HELD AS CUSTODIAN TRUSTEE ON BEHALF OF OTHERS
The trust, through SVC, acts as banker school for East and South Cambridgeshire Improvement Partnership (ESCIP) which represents 13 schools in the locality. Funding for provision of Education Other Than At School (EOTAS) is devolved by the local authority to this group to deliver this provision, the annual sum devolved is £1.2m (In 2014/15 a top slice of £176k has been deducted to fund central provision).
Funds are held in a control account within the trust's accounting software and reported on at the regular ESCIP meetings and an annual statement is agreed by the committee, these transactions and balances are included as part of the external audit each year.
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CAMBRIDGE MERIDIAN ACADEMIES TRUST (A company limited by guarantee)
GOVERNANCE STATEMENT
SCOPE OF RESPONSIBILITY
As trustees, we acknowledge we have overall responsibility for ensuring that Cambridge Meridian Academies Trust 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 trust board has delegated the day-to-day responsibility to the Executive 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 Cambridge Meridian Academies Trust and the Secretary of State for Education. They are also responsible for reporting to the trust board any material weaknesses or breakdowns in internal control.
GOVERNANCE
The information on governance included here supplements that described in the trustees' report and in the trustees' responsibilities statement. The trust board has formally met 4 times during the year. Attendance during the year at meetings of the trust board was as follows:
Trustee Meetings attended Out of a possible S Jamieson, Chair of Trustees 4 4 J Hall 2 4 M Woods, Executive Principal and Accounting 4 4 Officer M Fox 2 4 J Handy 4 4 D Ruddy 3 4 M Squires 2 4 A Hardy 4 4 L Birch 4 4
The Finance Committee is a sub-committee of the main trust board. Its purpose is to monitor and review the financial performance of the trust, including budget setting and monitoring.
Attendance at meetings in the year was as follows:
Meetings attended Out of a possible A Hardy 4 4 D Ruddy 3 4 M Woods 4 4 G Brighty 2 4 M Dixon 3 4 P Whitbread 2 4
The audit committee is also a sub committee of the main trust board. Its purpose is to review the effectiveness of the internal controls systems and internal audit function, to review with the external auditors the findings of their work and to respond to, and advise on, other issues within the trust that have wider implications than solely financial consequences. The audit committee will therefore review the risks to internal financial control at the trust and agree an annual programme of work that will address these risks, inform the statement of internal control and, so far as is possible, provide assurance to the external auditors.
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GOVERNANCE STATEMENT (continued)
Attendance at meetings in the year was as follows:
Meetings attended Out of a possible M Fox 3 3 J Handy 2 3 M Bedlow 3 3
REVIEW OF VALUE FOR MONEY
As accounting officer, the Executive Principal has responsibility for ensuring that CMAT delivers good value in the use of public resources. The accounting officer understands that value for money refers to the educational and wider societal outcomes achieved in return for the taxpayer resources received.
The accounting officer considers how the trust’s use of its resources has provided good value for money during each academic year, and reports to the board of trustees where value for money can be improved, including the use of benchmarking data where available. The accounting officer for CMAT has delivered improved value for money during the year by:
The trust is accountable for the way in which academy’s resources are allocated to meet the objectives set out in the academy’s development plans. Trustees need to secure the best possible outcome for pupils, in the most efficient and effective way, at a reasonable cost. This will lead to continuous improvement in the academies achievements and services.
What is Best Value
Trustees will apply the four principals of best value:
• Challenge: Why, how and by whom a service is provided • Compare: academy performance against available data. • Consult: With service users, the local community etc. • Competition: Wherever practicable, to secure efficient and effective services
The Trustees’ Approach
The trustees and academy managers apply the principles of best value when making decisions about:
• the allocation of resources to best promote the aims and values of individual academies • the targeting of resources to best improve standards and the quality of provision • the use of resources to best support the various educational needs of all pupils
The trustees and the academy managers:
• make comparisons with other/similar academies using available data, e.g. RAISE online, quality of teaching and learning, levels of expenditure • challenge proposals, examining them for effectiveness, efficiency, and cost • require suppliers to compete on grounds of cost and quality/suitability of services/products • consult individuals and organisations on quality/suitability of service we provide to parents, pupils, and services we receive from providers
This will apply in particular to:
• staffing – Trustees, governors and academy managers deploy staff to provide best value in terms of quality of teaching, quality of learning, adult-pupil ratio, and curriculum management with a clear focus on individual student achievement.
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GOVERNANCE STATEMENT (continued)
• use of premises – Trustees, governors and academy managers consider the allocation and use of teaching areas, support areas and communal areas, to provide the best environment for teaching and learning, for support services, and for communal access to central resources and opportunities to generate income from the premises assets. • use of resources – Trustees, governors and academy mangers deploy equipment, materials and services to provide pupils and staff with resources which support high quality teaching and learning. • quality of teaching – Trustees, governors and academy managers review the quality of curriculum provision and quality of teaching, to provide parents and pupils with a curriculum which meets the requirements of the National Curriculum, National Literacy Strategy and National Numeracy Strategy, and the needs of the pupils and teaching which builds on previous learning and has raised expectations of children’s achievement. • quality of learning – Trustees, governors and academy managers review the quality of pupil’s learning by setting and tracking pupil achievement targets. • purchasing – Trustees, governors and academy managers have clear procedures for assessing need, and obtaining goods and services which provide best value in terms of suitability, efficiency, time and cost. • pupil’s welfare – Trustees, governors and academy managers review the quality of the academy environment and the academy ethos, in order to provide a supportive environment conducive to learning and recreation. • health and safety – Trustees, governors and academy managers review the quality of the academy environment and equipment, carrying out risk assessments where appropriate, in order to provide a safe working environment for pupils, staff and visitors.
These areas are monitored for best value by:
1. Departmental reviews by the Principal & Senior Leadership Team 2. Target setting meetings between Principal, Senior Leadership Team and head of departments 3. Annual performance management 4. Annual budget planning 5. Feedback from internal auditor and audit reports 6. Analysis of individual academy pupil performance data 7. Benchmarking across the Trust and with comparable schools locally 8. Analysis of DfE pupil performance data 9. Key issues for action identified by OFSTED 10. Trustee committee meetings 11. Trustee annual staff salary review
The trust has engaged with other educational providers over the last year to share delivery and good practice – these include Cambridge & Peterborough Academies Group and Cambridge Primary Education Trust.
As a multi academy trust CMAT provides the following shared services across the trust:
• ICT • HR • Finance • Premises • Audit • Educational Support Services
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GOVERNANCE STATEMENT (continued)
2014/15
At Swavesey Village College resource was found to support an ACMF bid for capital monies of £2.74m which in turn released a further £400k of funding from the Local Authority making a total grant from the Local Authority of £2.6m.
Funds have been allocated from North Cambridge Academy budget to support enabling works for the PSBP programme costing £10m.
In the last year the catering contract has been re-tendered and provision across the trust has been unified and costs reduced.
The trust is committed to maximising the income from the resources at its disposal and is currently reviewing the level of income derived from lettings and associated activities.
Review and control
Budget reports are produced on a monthly basis, additional leadership resource has been recruited to further develop the provision of timely, accurate and strategic reports as the trust continues to grow.
Funding in Cambridgeshire is amongst the lowest in the country and spare resources are scarce, however Trustees are keen to establish an acceptable level of reserves.
The trust has a Risk Register which is currently being reviewed to ensure there is a clear focus on the most relevant and appropriate strategic financial risks.
The trust has an internal Audit function which produces regular reports for the audit committee and this is supported by the external auditors work.
The main challenges for the coming year are managing the anticipated growth of the trust, integrating new staff into the Core Trust Service teams, particularly in the finance function, ensuring all pupils achieve, standardisation of systems and procedures across the trust, further refining our schemes of delegation, encouraging good or outstanding academies/schools to join the trust and re-establishing a working relationship and trust with Cambridgeshire County Council.
THE PURPOSE OF THE SYSTEM OF INTERNAL CONTROL
The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk of failure to achieve policies, aims and objectives; it can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an ongoing process designed to identify and prioritise the risks to the achievement of 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 Cambridge Meridian Academies Trust for the year 1 September 2014 to 31 August 2015 and up to the date of approval of the annual report and financial statements.
CAPACITY TO HANDLE RISK
The trust board has reviewed the key risks to which the trust is exposed together with the operating, financial and compliance controls that have been implemented to mitigate those risks. The trust board is of the view that there is a formal ongoing process for identifying, evaluating and managing the trust's significant risks, that has been in place for the year 1 September 2014 to 31 August 2015 and up to the date of approval of the annual report and financial statements. This process is regularly reviewed by the trust board.
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CAMBRIDGE MERIDIAN ACADEMIES TRUST (A company limited by guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CAMBRIDGE MERIDIAN ACADEMIES TRUST
We have audited the financial statements of Cambridge Meridian Academies Trust for the year ended 31 August 2015 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 Academies Accounts Direction 2014 to 2015 issued by the Education Funding Agency.
This report is made solely to the trust's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the trust's members those matters we are required to state to them in an Auditors' 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 trust and its members, for our audit work, for this report, or for the opinion we have formed.
RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND AUDITORS
As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors of the trust 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 Ethical Standards for Auditors.
SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS
A description of the scope of an audit of financial statements is provided on the Financial Reporting Council's website at www.frc.org.uk/auditscopeukprivate.
OPINION ON FINANCIAL STATEMENTS
In our opinion the financial statements: give a true and fair view of the state of the trust's affairs as at 31 August 2015 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 Academies Accounts Direction 2014 to 2015 issued by the Education Funding Agency.
OPINION ON OTHER MATTER PRESCRIBED BY THE COMPANIES ACT 2006
In our opinion the information given in the trustees' report, incorporating the strategic report, for the financial year for which the financial statements are prepared is consistent with the financial statements.
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CAMBRIDGE MERIDIAN ACADEMIES TRUST (A company limited by guarantee)
INDEPENDENT REPORTING ACCOUNTANTS' ASSURANCE REPORT ON REGULARITY TO CAMBRIDGE MERIDIAN ACADEMIES TRUST AND THE EDUCATION FUNDING AGENCY
In accordance with the terms of our engagement letter dated 29 September 2015 and further to the requirements of the Education Funding Agency (EFA) as included in the Academies Accounts Direction 2014 to 2015, we have carried out an engagement to obtain limited assurance about whether the expenditure disbursed and income received by Cambridge Meridian Academies Trust during the year 1 September 2014 to 31 August 2015 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 Cambridge Meridian Academies Trust and EFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to Cambridge Meridian Academies Trust and 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 Cambridge Meridian Academies Trust and EFA, for our work, for this report, or for the conclusion we have formed.
RESPECTIVE RESPONSIBILITIES OF CAMBRIDGE MERIDIAN ACADEMIES TRUST'S ACCOUNTING OFFICER AND THE REPORTING ACCOUNTANT
The Accounting Officer is responsible, under the requirements of Cambridge Meridian Academies Trust's funding agreement with the Secretary of State for Education dated 30 March 2011, and the Academies Financial Handbook extant from 1 September 2014, 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 2014 to 2015. 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 year 1 September 2014 to 31 August 2015 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 2014 to 2015 issued by 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's income and expenditure.
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CAMBRIDGE MERIDIAN ACADEMIES TRUST (A company limited by guarantee)
STATEMENT OF FINANCIAL ACTIVITIES (incorporating income and expenditure account and statement of total recognised gains and losses) FOR THE YEAR ENDED 31 AUGUST 2015
Restricted Unrestricted Restricted fixed asset Total Total funds funds funds funds funds 2015 2015 2015 2015 2014 Note £ £ £ £ £ INCOMING RESOURCES Incoming resources from generated funds: Transfer from the Local Authority on conversion 2 - (128,850) 16,096,283 15,967,433 (688,663) Activities for generating funds 3 470,104 - - 470,104 392,212 Investment income 4 24,842 - - 24,842 23,762 Incoming resources from charitable activities 5 - 21,932,574 4,240,003 26,172,577 15,664,790 Other incoming resources 6 1,821,450 - - 1,821,450 971,345
TOTAL INCOMING RESOURCES 2,316,396 21,803,724 20,336,286 44,456,406 16,363,446
RESOURCES EXPENDED Charitable activities 1,507,673 22,541,048 606,787 24,655,508 16,162,986 Governance costs 10 - 63,501 - 63,501 38,054
TOTAL RESOURCES EXPENDED 7 1,507,673 22,604,549 606,787 24,719,009 16,201,040
NET INCOMING / (OUTGOING) RESOURCES BEFORE TRANSFERS, CARRIED FORWARD 808,723 (800,825) 19,729,499 19,737,397 162,406
Page 22 CAMBRIDGE MERIDIAN ACADEMIES TRUST (A company limited by guarantee)
STATEMENT OF FINANCIAL ACTIVITIES (continued) FOR THE YEAR ENDED 31 AUGUST 2015
Restricted Unrestricted Restricted fixed asset Total Total funds funds funds funds funds 2015 2015 2015 2015 2014 Note £ £ £ £ £ NET INCOMING / (OUTGOING) RESOURCES BEFORE TRANSFERS, BROUGHT FORWARD 808,723 (800,825) 19,729,499 19,737,397 162,406
Transfers between funds 24 (75,344) - 75,344 - -
NET INCOME FOR THE YEAR 733,379 (800,825) 19,804,843 19,737,397 162,406 Actuarial gains and losses on defined benefit pension schemes - (177,000) - (177,000) (929,000)
NET MOVEMENT IN FUNDS FOR THE YEAR 733,379 (977,825) 19,804,843 19,560,397 (766,594)
Total funds at 1 September 2014 1,290,992 (3,072,667) 9,448,468 7,666,793 8,433,387
TOTAL FUNDS AT 31 AUGUST 2015 2,024,371 (4,050,492) 29,253,311 27,227,190 7,666,793
All activities relate to continuing operations.
The Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 27 to 52 form part of these financial statements.
Page 23 CAMBRIDGE MERIDIAN ACADEMIES TRUST
(A company limited by guarantee) REGISTERED NUMBER: 07552498
BALANCE SHEET AS AT 31 AUGUST 2015
2015 2014 Note £ £ £ £ FIXED ASSETS Tangible assets 17 28,713,574 8,856,680 Investment property 18 350,000 - Investments 19 1 -
29,063,575 8,856,680 CURRENT ASSETS Stocks 20 70,423 50,476 Debtors 21 1,993,018 730,931 Cash at bank and in hand 3,886,587 2,378,049
5,950,028 3,159,456 CREDITORS: amounts falling due within one year 22 (3,182,616) (1,156,343)
NET CURRENT ASSETS 2,767,412 2,003,113
TOTAL ASSETS LESS CURRENT LIABILITIES 31,830,987 10,859,793 CREDITORS: amounts falling due after more than one year 23 (68,797) -
NET ASSETS EXCLUDING PENSION SCHEME LIABILITY 31,762,190 10,859,793 Defined benefit pension scheme liability 31 (4,535,000) (3,193,000)
NET ASSETS INCLUDING PENSION SCHEME LIABILITY 27,227,190 7,666,793
FUNDS OF THE TRUST Restricted funds: Restricted funds 24 484,508 120,333 Restricted fixed asset funds 24 29,253,311 9,448,468
Restricted funds excluding pension liability 29,737,819 9,568,801 Pension reserve (4,535,000) (3,193,000)
Total restricted funds 25,202,819 6,375,801 Unrestricted funds 24 2,024,371 1,290,992
TOTAL FUNDS 27,227,190 7,666,793
Page 24
CAMBRIDGE MERIDIAN ACADEMIES TRUST (A company limited by guarantee)
CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2015
2015 2014 Note £ £ Net cash flow from operating activities 26 1,167,053 249,763 Returns on investments and servicing of finance 27 13,842 23,762 Capital expenditure and financial investment 27 (231,901) 355,564 Cash transferred on schools joining the trust 29 480,864 -
CASH INFLOW BEFORE FINANCING 1,429,858 629,089 Financing 27 78,680 -
INCREASE IN CASH IN THE YEAR 1,508,538 629,089
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS FOR THE YEAR ENDED 31 AUGUST 2015
2015 2014 £ £ Increase in cash in the year 1,508,538 629,089 Cash outflow from decrease in debt and lease financing (78,680) -
MOVEMENT IN NET FUNDS IN THE YEAR 1,429,858 629,089 Net funds at 1 September 2014 2,378,049 1,748,960
NET FUNDS AT 31 AUGUST 2015 3,807,907 2,378,049
The notes on pages 27 to 52 form part of these financial statements.
Page 26 CAMBRIDGE MERIDIAN ACADEMIES TRUST (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2015
1. ACCOUNTING POLICIES
1.1 Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention, with the exception of investment properties which are included at market value. The financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP), 'Accounting and Reporting by Charities' published in March 2005, the Academies Accounts Direction 2014 to 2015 issued by EFA, applicable accounting standards and the Companies Act 2006.
The subsidiary undertakings, CMAT Educational Services Limited and Sawtry Multitask Software Training Limited, have not been consolidated in the parent trust's financial statements on the basis that the results are immaterial to the users of the group's financial statements.
1.2 Fund accounting
Unrestricted income funds represent those resources which may be used towards meeting any of the charitable objects of the Trust at the discretion of the trustees.
Restricted fixed asset funds are resources which are to be applied to specific capital purposes imposed by funders where the asset acquired or created is held for a specific purpose.
Restricted general funds comprise all other restricted funds received and include grants from the Department for Education.
Investment income, gains and losses are allocated to the appropriate fund.
1.3 Incoming resources
All incoming resources are included in the statement of financial activities when the trust has entitlement to the funds, certainty of receipt and the amount can be measured with sufficient reliability.
Grants are included in the statement of financial activities on a receivable basis. The balance of 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 provided to the trust 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 and it is measurable.
Page 27 CAMBRIDGE MERIDIAN ACADEMIES TRUST (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2015
1. ACCOUNTING POLICIES (continued)
The value of donated services and gifts in kind provided to the trust are recognised at their open market value in the period in which they are receivable as incoming resources, where the benefit to the trust 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 the trust's policies.
Donations are recognised on a receivable basis where there is certainty of receipt and the amount can be reliably measured.
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Other income, including the hire of facilities, is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.
1.4 Resources expended
Expenditure is recognised in the period in which a liability is incurred and has been classified under headings that aggregate all costs related to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use. Other support costs are allocated based on the spread of staff costs.
Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.
Charitable activities are costs incurred in the academies educational operations.
Governance costs include the costs attributable to the academies compliance with constitutional and statutory requirements, including audit, strategic management and trustees' meetings and reimbursed expenses.
All resources expended are inclusive of irrecoverable VAT.
1.5 Going concern
The trustees assess whether the use of going concern is appropriate, i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the trust to continue as a going concern. The trustees make this assessment in respect of a period of one year from the date of approval of the financial statements.
Page 28 CAMBRIDGE MERIDIAN ACADEMIES TRUST (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2015
1. ACCOUNTING POLICIES (continued)
1.6 Tangible fixed assets and depreciation
All assets costing more than £5,000 are capitalised.
The land and buildings of Nene Park Academy and West Town Primary Academy are occupied under a short term license. The buildings on conversion at Nene Park Academy have been rebuilt and in due course the new buildings and the land will be transferred from the Local Authority to the trust on a 125 year lease. The expectation is that in the short term (by October 2016) new school buildings will be built for West Town Primary Academy, and again once complete, the trust will enter into a 125 year lease for the buildings with the Local Authority. While the trust only has the right to occupy the land and buildings on a short term license, no tangible fixed asset value is recognised in the financial statements in relation to land and buildings for both Nene Park Academy and West Town Primary Academy. Additionally, the trust has not placed any short term valuation on licences to occupy because any valuation of these rights is considered impractical.
North Cambridge Academy joined the trust during the prior period. The freehold title to the North Cambridge Academy site was transferred to the trust as part of the conversion for £nil consideration. The North Cambridge Academy buildings are in poor condition and the school is to be rebuilt under the Priority Schools Building Programme. In view of this the value of the buildings is judged to be negligible. It is not considered practical to value the underlying land in isolation within the financial statements. At such point that the school is rebuilt the property will be recognised in the financial statements.
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 are 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 trust's depreciation policy. Where tangible fixed assets have been acquired with unrestricted funds, depreciation on such assets is charged to the unrestricted fund.
Assets in the course of construction are included at cost. Depreciation on these assets is not charged until they are brought into use.
Tangible fixed assets are stated at cost less depreciation. Depreciation is not charged on freehold land. Depreciation on other tangible fixed assets is provided at rates calculated to write off the cost of those assets, less their estimated residual value, over their expected useful lives on the following bases:
Freehold property - 50 years straight line Long term leasehold property - 20 to 30 years straight line Long term leasehold land - 125 years straight line Motor vehicles - 5 years straight line Fixtures and fittings - 3 to 10 years straight line Computer equipment - 1 year straight line
1.7 Investments in subsidiaries
Investments in subsidiaries are stated at cost less provision for impairment.
Page 29 CAMBRIDGE MERIDIAN ACADEMIES TRUST (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2015
1. ACCOUNTING POLICIES (continued)
1.8 Investment properties
Investment properties are included in the balance sheet at their open market value in accordance with Statement of Standard Accounting Practice No.19 and are not depreciated. This treatment is contrary to the Companies Act 2006 which states that fixed assets should be depreciated but is, in the opinion of the trustees, necessary in order to give a true and fair view of the financial position of the academy.
1.9 Leased assets
Rentals under operating leases are charged on a straight line basis over the lease term.
1.10 Stocks
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.
1.11 Taxation
The trust 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 trust 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.
Page 30 CAMBRIDGE MERIDIAN ACADEMIES TRUST (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2015
1. ACCOUNTING POLICIES (continued)
1.12 Pensions
Retirement benefits to employees of the trust are provided by the Teachers' Pension Scheme ("TPS") and the Local Government Pension Scheme ("LGPS"). These are defined benefit schemes and the assets are held separately from those of the trust.
The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees' working lives with the trust 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. As stated in note 31, the TPS is a multi-employer scheme and the trust 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 trust 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.
1.13 Schools joining the trust
Upon Stamford Welland Academy and Sawtry Village Academy joining the trust the identifiable assets and liabilities and the operations of the schools were transferred to the trust for £nil consideration. This has been accounted for under the acquisition accounting method.
The assets and liabilities transferred have been valued at their fair value, being a reasonable estimate of the current market value that the trustees would expect to pay in an open market for an equivalent item. Their fair value is in accordance with the accounting policies set out for Cambridge Meridian Academies Trust. The amounts have been recognised under the appropriate balance sheet categories, with a corresponding amount recognised in the statement of financial activities and analysed under unrestricted funds, restricted general funds and restricted fixed asset funds.
Further details of the transaction are set out in note 29.
Page 31 CAMBRIDGE MERIDIAN ACADEMIES TRUST (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2015
2. VOLUNTARY INCOME Unrestricted Restricted Total Total funds funds funds funds 2015 2015 2015 2014 £ £ £ £ Transfer on schools joining the trust - 15,920,481 15,920,481 (688,663) Grants - 46,952 46,952 -
Voluntary income - 15,967,433 15,967,433 (688,663)
The transfer on schools joining the trust comprises £15,570,481 in respect of the net assets and liabilities of Stamford Welland Academy and Sawtry Village Academy (see note 29) and a further £350,000 in respect of a property at North Cambridge Academy.
3. ACTIVITIES FOR GENERATING FUNDS Unrestricted Restricted Total Total funds funds funds funds 2015 2015 2015 2014 £ £ £ £ Hire of facilities 109,398 - 109,398 133,595 Catering income 138,265 - 138,265 53,710 Rental income 10,529 - 10,529 27,504 Other income from activities 211,912 - 211,912 177,403
470,104 - 470,104 392,212
4. INVESTMENT INCOME Unrestricted Restricted Total Total funds funds funds funds 2015 2015 2015 2014 £ £ £ £ Investment income 13,842 - 13,842 23,762 Pension income 11,000 - 11,000 -
24,842 - 24,842 23,762
Page 32 CAMBRIDGE MERIDIAN ACADEMIES TRUST (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2015
5. INCOMING RESOURCES FROM CHARITABLE ACTIVITIES Unrestricted Restricted Total Total funds funds funds funds 2015 2015 2015 2014 £ £ £ £ Trust's educational operations - 26,172,577 26,172,577 15,664,790
FUNDING FOR TRUST'S EDUCATIONAL OPERATIONS Unrestricted Restricted Total Total funds funds funds funds 2015 2015 2015 2014 £ £ £ £
General Annual Grant (GAG) - 17,290,680 17,290,680 12,016,195 SEN funding - 534,255 534,255 387,375 Start-up grants - 636,334 636,334 263,440 Capital grants - 4,181,255 4,181,255 960,276 Other DfE / EFA revenue grants - 2,094,781 2,094,781 1,459,092 Bursary funding for 6th form students - 26,298 26,298 14,394 Graduate training programme - 366,954 366,954 - Pupil premium - 1,042,020 1,042,020 564,018
- 26,172,577 26,172,577 15,664,790
6. OTHER INCOMING RESOURCES FROM EDUCATIONAL OPERATIONS Unrestricted Restricted Total Total funds funds funds funds 2015 2015 2015 2014 £ £ £ £ Contributions towards school trips 201,281 - 201,281 184,435 Contributions towards clubs and educational activities 374,815 - 374,815 373,720 Other incoming resources 1,245,354 - 1,245,354 413,190
1,821,450 - 1,821,450 971,345
Page 33 CAMBRIDGE MERIDIAN ACADEMIES TRUST (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2015
7. RESOURCES EXPENDED Staff costs Non Pay Expenditure Total Total Premises Other costs 2015 2015 2015 2015 2014 £ £ £ £ £ Trust's educational operations - direct costs 15,127,981 - 3,280,585 18,408,566 11,888,665 Trust's educational operations - support costs 3,264,590 1,288,290 1,694,062 6,246,942 4,274,321
Charitable activities 18,392,571 1,288,290 4,974,647 24,655,508 16,162,986
Governance (note 10) - - 63,501 63,501 38,054
18,392,571 1,288,290 5,038,148 24,719,009 16,201,040
8. DIRECT COSTS Total Total 2015 2014 £ £ Pension income - 38,000 Educational supplies 1,114,619 686,671 Educational visits 392,596 422,391 Examination fees 458,139 242,781 Staff development and training 144,005 101,751 Technology costs 767,285 293,859 Travel and subsistence 138,176 56,213 Graduate training programme 366,954 - Wages and salaries 14,648,792 9,946,999 Pension cost 378,000 100,000
18,408,566 11,888,665
Page 34 CAMBRIDGE MERIDIAN ACADEMIES TRUST (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2015
9. SUPPORT COSTS Total Total 2015 2014 £ £ Recruitment and support 124,069 81,987 Maintenance 452,841 219,862 Cleaning 111,551 68,493 Rent and rates 99,216 75,214 Energy 413,679 359,342 Water and sewerage 87,103 69,997 Insurance 269,347 176,589 Catering 307,208 269,329 Other support costs 510,552 285,812 Loss on disposal - 1,400 Wages and salaries 3,264,589 2,220,132 Depreciation 606,787 446,164
6,246,942 4,274,321
10. GOVERNANCE COSTS Unrestricted Restricted Total Total funds funds funds funds 2015 2015 2015 2014 £ £ £ £ Legal and professional fees - 63,501 63,501 32,089 Support costs - - - 5,896 Trustees expenses reimbursed - - - 69
- 63,501 63,501 38,054
11. NET INCOMING / (OUTGOING) RESOURCES This is stated after charging:
2015 2014 £ £ Depreciation of tangible fixed assets: - owned by the charity 606,787 446,165 Auditors' remuneration 15,000 11,000 Auditors' remuneration - non-audit 3,510 3,200 Operating lease rentals: - other operating leases 21,443 21,871
Page 35 CAMBRIDGE MERIDIAN ACADEMIES TRUST (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2015
12. STAFF a. Staff costs
Staff costs were as follows:
2015 2014 £ £ Wages and salaries 17,422,892 11,740,450 Other pension costs (note 31) 378,000 100,000
17,800,892 11,840,450 Supply teacher costs 490,490 426,681 Compensation payments 101,189 22,750 18,392,571 12,289,881
b. Staff severance payments
Included in teaching staff costs are non-statutory/non-contractual severance payments totalling £101,189 (2014: £22,750). Five of the non-statutory/non-contractual payments exceeded £5,000 individually, and these were £30,000, £13,500, £9,000, £7,500, £7,102 and £7,000.
c. Staff numbers
The average number of persons employed by the trust during the year expressed as full time equivalents was as follows:
2015 2014 No. No. Teachers 316 220 Administration and support 147 65 Management 40 30
503 315
d. Higher paid staff
The number of employees whose emoluments fell within the following bands was:
2015 2014 No. No. In the band £60,001 - £70,000 3 2 In the band £70,001 - £80,000 5 3 In the band £80,001 - £90,000 1 0 In the band £100,001 - £110,000 1 1
All the above employees participated in the Teachers' Pension Scheme or Local Government Pension Scheme.
Page 36 CAMBRIDGE MERIDIAN ACADEMIES TRUST (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2015
Wages and salaries breakdown 2015 2014 £ £ Wages and salaries 14,265,576 9,616,653 Social security costs 1,016,051 703,986 Pension costs 2,141,265 1,419,811
Total 17,422,892 11,740,450
13. CENTRAL SERVICES The trust has provided the following central services to its academies during the year
Human resources Financial services Educational support services Premises Audit Information, Communication, Technology
The trust charges for these services based on use by the individual schools.
The actual amounts charged during the year were as follows:
2015 £ Swavesey Village College 323,290 Nene Park Academy 322,886 North Cambridge Academy 186,899 West Town Primary Academy 138,096 Sawtry Village Academy 45,000 Stamford Welland Academy 167,129 1,183,300 Total
Page 37 CAMBRIDGE MERIDIAN ACADEMIES TRUST (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2015
14. TRUSTEES' REMUNERATION AND EXPENSES
The Executive Principal received remuneration in respect of services they provide undertaking the role of Executive Principal, and not in respect of their services as trustee. Other trustees did not receive any payments, other than expenses, from the Trust in respect of their role as trustees. The value of trustees' remuneration fell within the following bands: 2015 2015 2014 2014 Pension Pension Remuneration contributions Remuneration contributions £'000 £'000 £'000 £'000
M Woods (Executive Principal) 100-105 10-15 100-105 10-15
During the year ended 31 August 2015, trustees were reimbursed no expenses (2014 - £69).
15. TRUSTEES' AND OFFICERS' INSURANCE
In accordance with normal commercial practice the trust is in the process of purchasing insurance to protect trustees and officers from claims arising from negligent acts, errors or omissions occurring whilst on trust business.
16. OTHER FINANCE INCOME 2015 2014 £ £ Expected return on pension scheme assets 483,000 235,000 Interest on pension scheme liabilities (472,000) (273,000)
11,000 (38,000)
Page 38 CAMBRIDGE MERIDIAN ACADEMIES TRUST (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2015
17. TANGIBLE FIXED ASSETS Long term Freehold Leasehold Motor Fixtures Computer property Property vehicles and fittings equipment Total £ £ £ £ £ £ Cost At 1 September 2014 9,357,755 - 938 298,614 636,828 10,294,135 Additions 12,639,869 7,611,576 3,041 37,983 171,212 20,463,681
At 31 August 2015 21,997,624 7,611,576 3,979 336,597 808,040 30,757,816
Depreciation At 1 September 2014 746,442 - 563 68,437 622,013 1,437,455 Charge for the year 209,981 200,709 3,228 56,831 136,038 606,787
At 31 August 2015 956,423 200,709 3,791 125,268 758,051 2,044,242
Net book value At 31 August 2015 21,041,201 7,410,867 188 211,329 49,989 28,713,574
At 31 August 2014 8,611,313 - 375 230,177 14,815 8,856,680
Included in freehold property is freehold land of £3,604,762 (2014 - £1,661,154) and assets under the course of construction of £779,695 (2014 - £476,970) which are not depreciated.
18. INVESTMENT PROPERTY Freehold investment property £ Valuation At 1 September 2014 - Additions at fair value 350,000
At 31 August 2015 350,000
The 2015 valuations were made by the trustees after taking professional advice, on an open market value for existing use basis.
The addition in the year represents the fair value of a property at North Cambridge Academy that was transferred to the trust for £nil consideration (see note 2).
Page 39 CAMBRIDGE MERIDIAN ACADEMIES TRUST (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2015
19. FIXED ASSET INVESTMENTS Shares in group undertakings £ Cost At 1 September 2014 - Additions 1
At 31 August 2015 1
Subsidiary undertakings
The following were subsidiary undertakings of the company:
Name Holding CMAT Educational Services Limited 100% Sawtry Multitask Software Training Limited 100%
CMAT Educational Services Limited was dormant during the period. Sawtry Multitask Software Training Limited did trade but the activities were immaterial, at approximately £7,000.
20. STOCKS 2015 2014 £ £ Clothing/uniform 70,423 50,476
21. DEBTORS 2015 2014 £ £ Trade debtors 642,858 238,863 VAT recoverable 197,462 91,779 Other debtors 4,568 - Prepayments and accrued income 1,148,130 400,289
1,993,018 730,931
Page 40 CAMBRIDGE MERIDIAN ACADEMIES TRUST (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2015
22. CREDITORS: Amounts falling due within one year 2015 2014 £ £ Other loans 9,883 - Trade creditors 1,110,118 298,007 Amounts owed to group undertakings 1 - Other taxation and social security 357,031 220,702 Other creditors 335,893 284,008 Accruals and deferred income 1,369,690 353,626
3,182,616 1,156,343
£ Deferred income Deferred income at 1 September 2014 219,881 Resources deferred during the year 523,344 Amounts released from previous years (219,881)
Deferred income at 31 August 2015 523,344
At the balance sheet date the trust was holdings funds received in advance of the 2015/2016 financial year in respect of grants received, rates and student deposits.
23. CREDITORS: Amounts falling due after more than one year 2015 2014 £ £ Other loans 68,797 -
Included in other loans is a 0% interest salix loan. The loan is repayable evenly over eight years by installments paid every six months. The installments commenced March 2015.
Page 41 CAMBRIDGE MERIDIAN ACADEMIES TRUST (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2015
24. STATEMENT OF FUNDS Brought Incoming Resources Transfers Gains/ Carried Forward resources Expended in/out (Losses) Forward £ £ £ £ £ £ Unrestricted funds General funds 1,290,992 2,316,396 (1,507,673) (75,344) - 2,024,371
Restricted funds General Annual Grant (GAG) 120,333 17,290,680 (16,536,013) (875,000) - - SEN funding - 534,255 (534,255) - - - Start-up grants - 636,334 (616,259) - - 20,075 Sixth form funding - 26,298 (26,298) - - - Pupil premium - 1,042,020 (1,042,020) - - - Other DfE/EFA revenue grants - 2,036,033 (2,036,033) - - - Graduate training programme - 481,387 (366,954) - - 114,433 Funds transferred on joining the trust - 554,717 (204,717) - - 350,000 Pension reserve (3,193,000) (798,000) (1,242,000) 875,000 (177,000) (4,535,000)
(3,072,667) 21,803,724 (22,604,549) - (177,000) (4,050,492)
Restricted fixed asset funds
Fixed asset fund 8,856,679 16,049,331 (606,787) 4,414,351 - 28,713,574 DfE/EFA capital fund 591,789 4,240,003 - (4,339,007) - 492,785 Other capital grants - 46,952 - - - 46,952
9,448,468 20,336,286 (606,787) 75,344 - 29,253,311 Total restricted funds 6,375,801 42,140,010 (23,211,336) 75,344 (177,000) 25,202,819
Total of funds 7,666,793 44,456,406 (24,719,009) - (177,000) 27,227,190
The specific purposes for which the funds are to be applied are as follows:
Unrestricted reserves relate to unrestricted income to be used to support the trust's objectives and educational services.
The restricted general funds related to the trust's development and operational activities.
The restricted pension reserve represents the LGPS obligation to the employees of the trust.
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24. STATEMENT OF FUNDS (continued)
The restricted fixed asset fund represents the tangible fixed assets of the trust. The DfE/EFA capital fund represents unspent capital funds at the 31 August 2015.
The transfer between the DfE/EFA capital fund and fixed asset fund represents the acquisition of tangible fixed assets from capital funding.
Under the funding agreement with the Secretary of State, the trust was not subject to a limit on the amount of GAG that it could carry forward at 31 August 2015.
Analysis of academies by fund balance Fund balances at 31 August 2015 were allocated as follows: Total £ Swavesey Village College 350,083 Nene Park Academy 961,469 West Town Primary Academy 232,106 North Cambridge Academy (36,772) Sawtry Village Academy 86,299 Stamford Welland Academy 421,122 Cambridge Meridian Academies Trust 494,572
Total before fixed asset fund and pension reserve 2,508,879 Restricted fixed asset fund 29,253,311 Pension reserve (4,535,000)
Total 27,227,190
The following academies are carrying net deficits on their portion of the funds as follows:
Name of academy Amount of deficit £ North Cambridge Academy (36,772)
CMAT took over this failing school which had results in the bottom ten of all schools in England at only 20% of pupils leaving with A* to C grades. We have invested in improving pupil outcomes and have already seen a three- fold increase in results.
The trust is taking the following action to return the academy to surplus:
During Spring 2016 the school will move to a new building which will be more efficient and this will enable us to recover this investment during the next year or so.
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24. STATEMENT OF FUNDS (continued)
Analysis of academies by cost Expenditure incurred by each academy during the year was as follows: Teaching and Other costs educational Other excluding support support Educational depreciatio staff costs staff costs supplies n Total £ £ £ £ £ Swavesey Village College 4,334,600 950,007 193,405 774,743 6,252,755 Nene Park Academy 3,487,494 781,221 273,352 1,025,408 5,567,475 West Town Primary Academy 1,049,255 135,040 31,321 167,254 1,382,870 North Cambridge Academy 1,967,840 413,358 251,983 585,215 3,218,396 Sawtry Village Academy 1,837,979 453,594 142,439 796,005 3,230,017 Stamford Welland Academy 1,450,469 349,164 88,344 751,716 2,639,693 Cambridge Meridian Academies Trust 521,154 560,205 119,906 619,751 1,821,016 14,648,791 3,642,589 1,100,750 4,720,092 24,112,222
25. ANALYSIS OF NET ASSETS BETWEEN FUNDS Restricted Unrestricted Restricted fixed asset Total Total funds funds funds funds funds 2015 2015 2015 2015 2014 £ £ £ £ £ Tangible fixed assets - - 28,713,573 28,713,573 8,856,679 Fixed asset investments 1 - - 1 - Investment property - 350,000 - 350,000 - Current assets 4,904,378 134,508 911,143 5,950,029 3,159,456 Creditors due within one year (2,880,008) - (302,608) (3,182,616) (1,156,342) Creditors due in more than one year - - (68,797) (68,797) - Provisions for liabilities and charges - (4,535,000) - (4,535,000) (3,193,000)
2,024,371 (4,050,492) 29,253,311 27,227,190 7,666,793
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2015
26. NET CASH FLOW FROM OPERATING ACTIVITIES 2015 2014 £ £ Net incoming resources before revaluations 19,737,397 162,406 Returns on investments and servicing of finance (13,842) (23,762) Fair value of gifted tangible fixed assets (16,341,777) - Depreciation of tangible fixed assets 606,787 446,165 Deficit on disposal of tangible fixed assets - 1,400 Capital grants (4,240,003) (993,681) Increase in stocks (19,947) (2,606) Increase in debtors (1,262,088) (119,729) Increase/(decrease) in creditors 2,016,390 (124,430) Cash transferred in on schools joining the academy trust (480,864) - Defined pension scheme liability transferred on conversion 798,000 766,000 FRS 17 adjustments 367,000 138,000
Net cash inflow from operations 1,167,053 249,763
27. ANALYSIS OF CASH FLOWS FOR HEADINGS NETTED IN CASH FLOW STATEMENT 2015 2014 £ £ Returns on investments and servicing of finance Interest received 13,842 23,762
2015 2014 £ £ Capital expenditure and financial investment Purchase of tangible fixed assets (4,471,904) (638,117) Capital grants 4,240,003 993,681
Net cash (outflow)/inflow capital expenditure (231,901) 355,564
2015 2014 £ £ Financing Other new loans 84,552 - Repayment of other loans (5,872) -
Net cash inflow from financing 78,680 -
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28. ANALYSIS OF CHANGES IN NET FUNDS Other 1 non-cash September Cash flow changes 31 August 2014 2015 £ £ £ £ Cash at bank and in hand: 2,378,049 1,508,538 - 3,886,587 Debt: Debts due within one year - (9,883) - (9,883) Debts falling due after more than one year - (68,797) - (68,797)
Net funds 2,378,049 1,429,858 - 3,807,907
29. SCHOOLS JOINING THE ACADEMY TRUST On 1 October 2014 and 1 April 2015 respectively Stamford Welland Academy and Sawtry Village Academy joined the trust. All the operations and assets and liabilities were transferred to Cambridge Meridian Academies Trust from CfBT Schools Trust and Sawtry Village College respectively for £nil consideration.
The transfer has been accounted for using the acquisition method. The assets and liabilities transferred were valued at their fair value and recognised in the balance sheet under the appropriate headings with a corresponding net amount recognised as net incoming resources in the statement of financial activities as voluntary income.
The following table sets out the fair values of the identifiable assets and liabilities transferred and an analysis of their recognition in the statement of financial activities.
Restricted Unrestricted Restricted fixed asset Total funds funds funds funds £ £ £ £ Tangible fixed assets - Freehold/leasehold land and buildings - - 15,991,777 15,991,777 - Other tangible fixed assets - - 57,554 57,554 Budget surplus/(deficit) on other school funds - 319,150 - 319,150 LGPS pension surplus/(deficit) - (798,000) - (798,000)
Net assets/(liabilities) - (478,850) 16,049,331 15,570,481
The above net assets include £480,864 that were transferred as cash.
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30. CAPITAL COMMITMENTS At 31 August 2015 the trust had capital commitments as follows: 2015 2014 £ £ Contracted for but not provided in these financial statements 1,403,214 4,860,000
This is in respect of an extension and refurbishment project at SVC. The works will be funded by capital grants and a salix loan.
31. PENSION COMMITMENTS The trust's employees belong to two principal pension schemes: the Teacher's Pension Scheme for England and Wales (TPS) for academic and related staff; and the Local Government Pension Scheme (LGPS) for non-teaching staff, which is managed by Cambridgeshire County Council and Lincolnshire County Council. All 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 related to the period ended 31 March 2012 and of the LGPS 31 March 2013.
Contributions amounting to £324,898 were payable to the scheme at 31 August 2015 (2014 - 197,411) and are included within 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.
Valuation of the Teachers’ Pension Scheme
Not less than every four years the Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. 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%);
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31. PENSION COMMITMENTS (continued)
total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service to the effective date of £191,500 million, and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £176,600 million giving a notional past service deficit of £14,900 million an employer cost cap of 10.9% of pensionable pay will be applied to future valuations the assumed real rate of return is 3.0% in excess of prices and 2.0% in excess of earnings. The rate of real earnings growth is assumed to be 2.75%. The assumed nominal rate of return is 5.06%
During the year the employer contribution rate was 14.1%. The TPS valuation for 2012 determined an employer rate of 16.4% from September 2015, which will be payable during the implementation period until the next valuation as at March 2016, whereupon the employer contribution rate is expected to be reassessed and will be payable from 1 April 2019.
The pension costs paid to TPS in the period amounted to £1,266,000 (2014: £912,000).
A copy of the valuation report and supporting documentation is on the Teachers' Pensions website.
Under the definitions set out in Financial Reporting Standard (FRS 17) Retirement Benefits, the TPS is a multi-employer pension scheme. The trust has accounted for its contributions to the scheme as if it were a defined contribution scheme. The trust has set out above the information available on the scheme.
Local Government Pension Scheme
The LGPS is a funded defined benefit scheme, with assets held in separate trustee-administered funds. The total contribution made for the year ended 31 August 2015 was £1,122,000, of which employer's contributions totalled £875,000 and employees' contributions totalled £247,000. The agreed contribution rates for future years are 19.1% for employers and a tiered% 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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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2015
31. PENSION COMMITMENTS (continued)
The trust's share of the assets and liabilities in the scheme and the expected rates of return were:
Expected Expected return at Fair value at return at Fair value at 31 August 31 August 31 August 31 August 2015 2015 2014 2014 % £ % £ Equities 3.80 6,879,000 6.30 3,548,000 Bonds 3.80 1,352,000 2.90 767,000 Property 3.80 817,000 4.50 336,000 Cash 3.80 221,000 3.30 144,000
Total market value of assets 9,269,000 4,795,000 Present value of scheme liabilities (13,804,000) (7,988,000)
(Deficit)/surplus in the scheme (4,535,000) (3,193,000)
The amounts recognised in the balance sheet are as follows:
2015 2014 £ £ Present value of funded obligations (13,804,000) (7,988,000) Fair value of scheme assets 9,269,000 4,795,000
Net liability (4,535,000) (3,193,000)
The amounts recognised in the statement of financial activities are as follows:
2015 2014 £ £ Current service cost (1,253,000) (608,000) Interest on obligation (472,000) (273,000) Expected return on scheme assets 483,000 235,000
Total (1,242,000) (646,000)
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31. PENSION COMMITMENTS (continued)
Movements in the present value of the defined benefit obligation were as follows:
2015 2014 £ £ Opening defined benefit obligation 7,988,000 4,961,000 Current service cost 1,253,000 608,000 Interest cost 472,000 273,000 Contributions by scheme participants 247,000 143,000 Actuarial (gains)/losses (171,000) 1,078,000 Liabilities assumed in a business combination 4,077,000 965,000 Benefits paid (62,000) (40,000)
Closing defined benefit obligation 13,804,000 7,988,000
Movements in the fair value of the trust's share of scheme assets:
2015 2014 £ £ Opening fair value of scheme assets 4,795,000 3,601,000 Expected return on assets 483,000 235,000 Actuarial gains and (losses) (348,000) 149,000 Contributions by employer 875,000 508,000 Contributions by employees 247,000 143,000 Assets acquired in a business combination 3,279,000 199,000 Benefits paid (62,000) (40,000)
9,269,000 4,795,000
The cumulative amount of actuarial gains and losses recognised in the statement of total recognised gains and losses was £1,442,000 loss (2014 - £1,265,000).
The trust expects to contribute £978,000 to its defined benefit pension scheme in 2016.
The major categories of scheme assets as a percentage of total scheme assets are as follows:
2015 2014 Equities 74.00 % 74.00 % Bonds 15.00 % 16.00 % Property 9.00 % 7.00 % Cash 2.00 % 3.00 %
Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):
2015 2014 Discount rate for scheme liabilities 3.80 % 3.70 % Expected return on scheme assets at 31 August 3.80 % 5.60 % Rate of increase in salaries 4.60 % 4.50 % Rate of increase for pensions in payment / inflation 2.70 % 2.70 %
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2015
31. PENSION COMMITMENTS (continued)
The current mortality assumptions include sufficient allowance for future improvements in mortality rates. The assumed life expectations on retirement age 65 are:
2015 2014 Retiring today Males 22.5 22.5 years Females 24.5 24.4 years
Retiring in 20 years Males 24.4 24.5 years Females 26.9 26.9 years
Amounts for the current and previous three periods are as follows:
Defined benefit pension schemes
2015 2014 2013 2012 £ £ £ £ Defined benefit obligation (13,804,000) (7,988,000) (4,961,000) (4,162,000) Scheme assets 9,269,000 4,795,000 3,601,000 (2,681,000)
Deficit (4,535,000) (3,193,000) (1,360,000) (6,843,000)
Experience adjustments on scheme liabilities 171,000 (1,078,000) (117,000) (389,000) Experience adjustments on scheme assets (348,000) 149,000 314,000 (144,000)
32. OPERATING LEASE COMMITMENTS At 31 August 2015 the trust had annual commitments under non-cancellable operating leases as follows:
2015 2014 £ £ Expiry date: Within 1 year 14,302 2,573 Between 2 and 5 years 87,651 19,298
33. MEMBERS' LIABILITY Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up while he/she is a member, or within one year after he/she ceases to be a member, such amount as may be required, not exceeding £10 for the debts and liabilities contracted before he/she ceases to be a member.
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2015
34. RELATED PARTY TRANSACTIONS
Owing to the nature of the trust's operations and the composition of the board of trustees being drawn from local public and private sector organisations, transactions may take place with organisations in which a trustee has an interest. All transactions involving such organisations are conducted at arm's length and in accordance with the trust's financial regulations and normal procurement procedures.
No related party transactions took place in the period of account.
35. POST BALANCE SHEET EVENTS The subsidiary company CMAT Educational Services Limited commenced trading on 1 September 2015, undertaking certain lettings and IT services. Annual income is expected to be approximately £250,000. Annual profits will be gifted to the trust.
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