1. RNIB Specialist Learning Trust (A Company Limited by Guarantee) Annual Report and Financial Statements Year ended 31 August 2015

Company Registration Number: 8478985 (England and Wales) RNIB Specialist Learning Trust Contents

Reference and Administrative Details Page 3

Trustees Report Page 4

Governance Statement Page 11

Statement on Regularity, Propriety and Compliance Page 14

Statement of Trustees Responsibilities Page 15

Independent Auditors’ Report to the Trustees of RNIB Specialist Learning Trust Page 17

Independent Auditors’ Report on Regularity to the Trustees of RNIB Specialist Learning Trust Page 21

Statement of Financial Activities Page 24

Balance Sheet Page 26

Cash flow Statement Page 27

Notes to the Financial Statements Page 28

2 RNIB Specialist Learning Trust Reference and Administrative Details Trustees All Trustees were appointed on incorporation unless otherwise stated. Sally Harvey (Chair) Laura Crandley Andrew Moran(resigned 31 August 2015) Virginia Tyler

Company Secretary Kathrin John (resigned 19 December 2014) Simmi Khandpur (appointed 12 February 2015)

Senior Management Team Executive Headteacher: Andrew Moran (resigned 31 August 2015) Interim Executive Headteacher: Adrian Evans (appointed 9 November 2015) Headteacher: Robert Jones (appointed 1 September 2014) Principal and Accounting Officer: Andrew Moran (resigned 31 August 2015) Robert Jones (appointed as Accounting Officer 1 September 2015)

Principal Office: c/o RNIB Pears Centre, Wheelwright Lane, Ash Green, Coventry, CV7 9RA

Registered Office: 105 Judd Street, London, WC1H 9NE

Company Registration Number: 8478985

Independent Auditors: PricewaterhouseCoopers LLP, 1 Embankment Place, London, WC2N 6RH

Bankers: Royal Bank of Scotland plc, Marylebone Road and Harley Street Branch, 10 Marylebone High Street, London, W1A 1FH

Solicitors: Bates Wells & Braithwaite, 2-6 Cannon Street, London, EC4M 6YH

3 RNIB Specialist Learning Trust Trustees’ Report The Trustees present their report together with the financial statements and auditor’s reports of the charitable company for the year ended 31 August 2015.

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 Trustees of RNIB Specialist Learning Trust are also the directors of the charitable company for the purposes of company law. The charitable company is known as RNIB Specialist Learning Trust.

Details of the Trustees who served during the year are included in the Reference and Administrative Details on page 3.

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 £1, for the debts and liabilities contracted before they ceased to be a member.

Trustees’ Indemnities The Academy Trust has in place directors and Trustees liability insurance indemnity cover to a limit of £1,000,000.

Principal Activities, Objectives and Aims The vision statement of RNIB Specialist Learning Trust is that every individual is valued and given the greatest opportunity to achieve their best.

We want to achieve this so that every individual can become an active, happy and fulfilled citizen in the world.

To achieve our vision:

 Teaching and learning will be creative, relevant and enjoyable ensuring that everyone learns and develops;  The curriculum will be flexible, imaginative and relevant ensuring equality of opportunity for all children, to ensure they gain key skills in an enjoyable and motivating way; Trustees’ Report - continued  We will provide quality care that is appropriate and consistent, in a safe and secure environment, for all individuals;  Assessment will recognise attainment and achievement, whilst providing opportunities for teaching teams, parents and children to plan the next steps in learning;  A partnership based on our shared vision will be sought with parents, carers, governors and the community through effective communication, team work and by valuing all contributions;  RNIB Specialist Learning Trust will ensure that every child matters by providing a safe, positive, caring and nurturing environment, where the individual is celebrated.

4 RNIB Specialist Learning Trust

Our values are that we all try to achieve our best, are confident learners, care for each other, have fun and are happy and trust and respect each other.

Public Benefit The Trustees have complied with their duty in section four of the Charities Act 2006 to have due regard to the guidance on public benefit published by the Charity Commission (on their website) in exercising their powers or duties.

Method of Recruitment and Appointment or Election of Trustees The Members may appoint up to 4 Directors and RNIB may appoint up to 8 Directors. The Members or RNIB (as applicable) may appoint Directors through such process as they respectively may determine. The total number of Directors including the Chief Executive Officer who are employees of the Company shall not exceed one third of the total number of Directors.

There are clearly defined and approved procedures for the selection and appointment of directors and Trustees which are outlined in the governing document. Consideration is given to the skills of directors and Trustees which could enhance the effectiveness of the Trust.

Policies and Procedures Adopted for the Induction and Training of Trustees The training and induction provided for new Trustees will depend on their existing skills and experience. Where necessary, induction will provide training on charity and educational, legal and financial matters. All new Trustees will meet with the Chair of Trustees and the opportunity to visit the school. All Trustees are provided with copies of policies, procedures, minutes, accounts, budgets, plans and other documents they will need to undertake their role. Trustees’ Report - continued Organisational Structure The structure consists of the Trustees and the senior management team.

The Trustees are responsible for setting general policy, adopting an annual business plan and budget, monitoring the Trust’s performance and making major decisions about the direction of the Trust, capital expenditure and senior staff appointments.

The senior management team are the Executive Head, the Head and the Deputy Head. This team controls the Academy Trust at an executive level implementing the policies laid down by the Trustees and reporting back to them. The team is responsible for the authorisation of spend within agreed budgets and the appointment of staff.

Risk Management The Trustees have assessed the major risks to which the academy is exposed in particular those relating to specific teaching, provision of facilities and other operational areas of the Academy Trust and its finances. The Trustees have implemented a number of systems to assess risks that the school faces, especially in the operational areas (in relation to teaching, health and safety, safeguarding and school trips) and in relation to the control of finance. They have maintained systems, including operational procedures and internal financial control in order to minimise risk. Where significant risk still remains they have ensured that they have adequate insurance cover where applicable.

5 RNIB Specialist Learning Trust

Financial and Risk Management Objectives and Policies The Academy Trust’s financial and risk management objectives are documented in its budget, scheme of delegation, financial procedures and risk management policy.

Principal Risks and Uncertainties The Board has considered the risks faced by the Academy Trust throughout its operational business. It has sought to address the risks faced by establishing appropriate governance and management arrangements, including the appointment of senior staff and establishing robust operational procedures. The Board considers that these arrangements have been effective throughout the year.

6 RNIB Specialist Learning Trust Trustees’ Report – continued Connected Organisations including Related Party Relationships RNIB Specialist Learning Trust is part of the RNIB Group of charities. RNIB (charity number 226227) is the corporate member of the Trust.

Achievements and Performance The Academy Trust has successfully completed its second year of operation. It has temporarily increased its capacity to meet the additional demand within Coventry City for spaces for learners with SEN. This increased our capacity to 91 and 89 of these spaces are currently filled, though at the time of writing it is likely that the two places will be filled given the level of parental enquiries.

Going Concern After making the appropriate enquiries, the Board of Trustees 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.

Key Financial Performance Indicators The Trustees have clarified the Key Financial Performance Indicators for the Academy Trust as being comparison to a balanced and annual budget.

Financial Review The principal source of funding for the Academy Trust is the grant from the Education Funding Agency (“EFA”).

The Academy Trust also received a grant for the refurbishment of the school buildings from the EFA. 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 the annual depreciation charge over the expected useful life of the assets concerned.

During the year, total expenditure of £1,624,000 was covered by grant funding. The Academy Trust results were in line with budget expectations.

Trustees’ Report - continued The Board intends to build on this by establishing a formal risk management policy which will formally document the action that is taking place and should enable future risk management to be more systematic.

7 RNIB Specialist Learning Trust Reserves Policy RNIB Specialist Learning Trust’s Reserves Policy focuses on the level of 'free' reserves. These reserves exclude restricted, designated funds and the net book value of fixed assets.

The recommended free reserves level is calculated annually in advance of the budget process on the basis of the financial impact of the current risks facing the Trust.

The Trust seeks to maintain free reserves to manage the risks to which the charity is exposed in the course of its business, including but not limited to unexpected costs.

The Trustees consider that in order to meet these needs, and to operate effectively, the Trust needs reserves of around £40,000 based on the current analysis of risk.

Plans for Future Periods RNIB is well established in the education field, and has been running schools since 1918. Our aims are to:

 develop a family of academies across the UK which are focussed on providing first- class teaching and learning for their pupils;  support the smooth transition of schools converting to a sponsored academy;  work with academies to build on their existing strengths to improve outcomes for all pupils.

We are particularly interested in sponsoring schools that are:

 currently in special measures, or are at risk of failing;  successful in their own right, but wish to access the benefits of belonging to a family of schools that are focussed on providing first-class teaching and learning for their pupils.

8 RNIB Specialist Learning Trust Trustees’ Report - continued Academies we sponsor have access to the following services:

 Specialist educational expertise.  Specialist care, healthcare and therapies.  Marketing support, including branding, website and communications.  Facilities management support.  Health and safety management.  Finance and procurement support.  Human resources (HR) and payroll services.  Fundraising support.  ICT solutions.

Benefits of becoming an RNIB academy ”The second year of being an Academy sponsored by RNIB Specialist Learning Trust has been a positive one, highlighted by the fact the school achieved a Good Ofsted rating in all areas. We saw significant improvements to the school's fabric as part of an ongoing modernisation process. The school also worked in close partnership with RNIB Pears Centre for Specialist Learning through the establishment of a satellite early years provision, meeting increased demand for special school placements. The school is ambitious to make the most of the opportunities provided by academy status.” Robert Jones, Headteacher, RNIB Three Spires Academy (part of RNIB Specialist Learning Trust).

Benefits for pupils  Commitment to a first-class education and improved outcomes.

Benefits for parents  The knowledge that your child's school is sponsored and supported by a not-for-profit organisation well established in the education field.

Benefits for staff  Support to develop and deliver high quality teaching and learning for pupils;  Continued professional development opportunities (CPD) and a training programme. Trustees’ Report - continued Benefits for governors  Support in shaping strategic decisions for the academy.

Benefits for the community  A commitment that the academy will still be part of the local offer in the area;  The opportunity to be part of the academy's governing body.

Independent Auditors Insofar as the Trustees are aware:

9 RNIB Specialist Learning Trust there is no relevant audit information of which the charitable company’s auditors are unaware; and the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information

Approved by order of the Board of Trustees on 22 December 2015 and signed on its behalf by:

Sally Harvey Chair Trustees

10 RNIB Specialist Learning Trust Governance Statement Scope of Responsibility As Trustees we acknowledge we have overall responsibility for ensuring that RNIB Specialist Learning 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 Board of Trustees has delegated the day-to-day responsibility to the Headteacher 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 RNIB Specialist Learning Trust and the Secretary of State for Education. They are also responsible for reporting to the board of Trustees any material weaknesses or breakdowns in internal control.

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

Meetings attended Out of a possible Sally Harvey (Chair) 4 4 Laura Crandley 4 4 Andrew Moran 4 4 Virginia Tyler 0 4

11 RNIB Specialist Learning Trust Governance Statement - continued

The Purpose of the System of Internal Control The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk of failure 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 RNIB Specialist Learning Trust for the year ended August 2015 and up to the date of approval of the annual report and financial statements.

Capacity to Handle Risk The Board of Trustees has reviewed the key risks to which the Academy Trust is exposed together with the operating, financial and compliance controls that have been implemented to mitigate those risks. The Board of Trustees is of the view that there is a formal on-going process for identifying, evaluating and managing the Academy Trust’s significant risks that has been in place for the year ended 31 August 2015 and up to the date of approval of the annual report and financial statements. This process is regularly reviewed by the Board of Trustees.

The Risk and Control of 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 Board of Trustees; delegation of authority and segregation of duties; identification and management of risks.

The Board of Trustees has considered the need for a specific internal audit function and has decided that services will be provided by RNIB’s internal audit function.

12 RNIB Specialist Learning Trust Governance Statement - continued The auditor’s role includes giving advice on financial matters and performing a range of checks on the Academy Trust’s financial systems. On an annual basis the auditor reports to the Board of Trustees on the operation of the systems of control and on the discharge of the Board of Trustees’ financial responsibilities.

Review of Effectiveness As Accounting Officer the Headteacher has responsibility for reviewing the effectiveness of the system of internal control. During the year in question the review has been informed by the Accounting Officer and the work of executive managers within the Academy Trust who have responsibility for the development and maintenance of the internal control framework.

The Accounting Officer has been advised of plans to address any weaknesses and ensure continuous improvement of the system is in place.

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

Sally Harvey Chair of Trustees

13 RNIB Specialist Learning Trust Statement on Regularity, Propriety and Compliance As Accounting Officer of RNIB Specialist Learning Trust I have considered my responsibility to notify the Academy Trust board of Trustees and the Education Funding Agency of material irregularity, impropriety and non-compliance with EFA 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 Trust Board of Trustees 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.

Robert Jones Accounting Officer

14 RNIB Specialist Learning Trust Statement of Trustees’ Responsibilities The Trustees (who are also directors of RNIB Specialist Learning Trust for the purposes of company law) are responsible for preparing the Trustees’ Annual and the financial statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of the affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:  select suitable accounting policies and then apply them consistently;  observe the methods and principles in the Charities SORP;  make judgments and estimates that are reasonable and prudent; and  prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain 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.

In so far as the Trustees are aware:  there is no relevant audit information of which the charitable company’s auditor is unaware; and  the Trustees 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 Trustees are responsible for the maintenance and integrity of 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 Board of Trustees on 22 December 2015 and signed on its behalf by:

Sally Harvey Chair of Trustees

15 RNIB Specialist Learning Trust Independent Auditors’ Report to the Trustees of RNIB Specialist Learning Trust Report on the financial statements In our opinion the financial statements, defined below: · give a true and fair view of the state of the charitable company’s (the “Academy Trust”) affairs as at 31 August 2015 and of its incoming resources and application of resources , including its income and expenditure, and cash flows for the year then ended ; · have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; · have been properly prepared in accordance with the requirements of the Companies Act 2006; and · have been prepared in accordance with the Academies Accounts Direction 2014 to 2015 issued by the Education Funding Agency.

This opinion is to be read in the context of what we say in the remainder of this report.

What we have audited The charitable company financial statements (the “financial statements”), which are prepared by RNIB Specialist Learning Trust, comprisei: · the balance sheet as at 31 August 2015; · the Statement of Financial Activities (including income and expenditure accounts and statement of total recognised gain and losses) for the year then ended; · the cash flow statement for the year then ended; · the notes to the financial statements, which include a summary of significant accounting policies and other explanatory information.

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. In applying the financial reporting framework, the Trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. In making such estimates, they have made assumptions and considered future events. Independent Auditors’ Report to the Trustees of RNIB Specialist Learning Trust - continued

16 RNIB Specialist Learning Trust Opinion on other matters prescribed by the Companies Act 2006 In our opinion the information given in the Trustees’ Report for the financial year for which the financial statements are prepared is consistent with the financial statements. Other matters on which we are required to report by exception Adequacy of accounting records and information and explanations received Under the Companies Act 2006 we are required to report to you if, in our opinion: · we have not received all the information and explanations we require for our audit; or · adequate accounting records have not been kept by the Academy Trust, or returns adequate for our audit have not been received from branches not visited by us; or · the Academy Trust’s financial statements are not in agreement with the accounting records and returns.

We have no exceptions to report arising from this responsibility.

Trustees’ remuneration Under the Companies Act 2006 we are required to report to you if, in our opinion, certain disclosures of Trustees’ remuneration specified by law are not made. We have no exceptions to report arising from this responsibility.

Entitlement to Exemptions Under the Companies Act 2006 we are required to report to you if, in our opinion, the Trustees were not entitled to take advantage of the small companies exemption from preparing a Strategic Report. We have no exceptions to report arising from this responsibility.

Independent Auditors’ Report to the Trustees of RNIB Specialist Learning Trust - continued

Responsibilities for the financial statements and the audit Our responsibilities and those of the Trustees As explained more fully in the Statement of Trustees’ Responsibilities, the Trustees 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 ISAs (UK & Ireland). Those

17 RNIB Specialist Learning Trust standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors. This report, including the opinions, has been prepared for and only for the Academy Trust’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and Article 69e of the Academy Trust’s funding agreement with the Secretary of State for Education and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

What an audit of financial statements involves We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) (“ISAs (UK & Ireland)”). 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 company’s circumstances and have been consistently applied and adequately disclosed; · the reasonableness of significant accounting estimates made by the Trustees; and · the overall presentation of the financial statements.

Independent Auditors’ Report to the Trustees of RNIB Specialist Learning Trust - continued In addition, we read all the financial and non-financial information in the Annual Report and Financial Statements to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Nicholas Boden (Senior Statutory Auditor) for and on behalf of PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors London

December 2015

18 RNIB Specialist Learning Trust Independent Auditors’ Report on Regularity to the Trustees of RNIB Specialist Learning Trust (the Academy Trust’)

In accordance with the terms of our engagement letter dated 1 October 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 RNIB Specialist Learning Trust during the year ended 31 August 2015 have been applied to the purposes identified by Parliament and the financial transactions conform to the authorities which govern them, as set out in the Academies Accounts Direction 2014 to 2015.

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

Respective responsibilities of the RNIB Specialist Learning Trust’s accounting officer and the reporting accountant The Accounting Officer is responsible, under the requirements of RNIB Specialist Learning Trust’s funding agreement with the Secretary of State for Education dated 30 August 2013 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 ended 31 August 2015 have not been

19 RNIB Specialist Learning Trust Independent Auditors’ Report on Regularity to the Trustees of RNIB Specialist Learning Trust (the Academy Trust’) - continued applied to purposes intended by Parliament or that the financial transactions do not conform to the authorities which govern them, as set out in the Academies Accounts Direction 2014 to 2015.

Approach We conducted our limited assurance engagement in accordance with the Academies Accounts Direction 2014 to 2015 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 as described above.

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 reasonable assurance 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. The work undertaken to draw to our conclusion includes:  Confirming directly with banks and through review of minutes that RNIB Specialist Learning Trust does not have borrowings;  Obtaining register of interests for all Trustees;  Obtaining representations of the Trustees for their responsibilities;  Testing related party transactions to ensure that the terms are not preferential;  Evaluating the control environment at the Trust and identifying control weaknesses;  Testing that expense claims are in line with internal controls and not for personal benefit; and  Confirming that expenditure has been incurred in line with the delegation limits.

20 RNIB Specialist Learning Trust Independent Auditors’ Report on Regularity to the Trustees of RNIB Specialist Learning Trust (the Academy Trust’) - continued 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 year ended 31 August 2015 have not been applied to the purposes intended by Parliament and the financial transactions do not conform to the authorities which govern them, as set out in the Academies Accounts Direction 2014 to 2015.

For and on behalf of PricewaterhouseCoopers LLP (Reporting Accountant)

December 2015

21 RNIB Specialist Learning Trust Statement of Financial Activities for the Year Ended 31 August 2015 (including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Incoming Resources from generated funds:

Note Unrestricted Restricted Restricted Total Total Funds General Fixed Asset 2015 2014 Funds Funds £000 £000 £000 £000 £000 Activities for generating 2 20 - - 20 19 funds

Incoming resources from charitable activities:

Note Unrestricted Restricted Restricted Total Total Funds General Fixed Asset 2015 2014 Funds Funds £000 £000 £000 £000 £000 Funding for 3 3 1,317 103 1,423 1,660 the Academy Trust’s educational operations Transfers on - - - - 798 Conversion Total 23 1,317 103 1,443 2,477 incoming resources

Resources expended – Charitable activities:

Note Unrestricted Restricted Restricted Total Total Funds General Fixed Asset 2015 2014 Funds Funds £000 £000 £000 £000 £000 Academy 5 301 1,251 55 1,607 trust 1,436 educational

22 RNIB Specialist Learning Trust operations Governance 6 17 - - 17 42 costs Total 4 318 1,251 55 1,624 1,478 resources expended Net outgoing (295) 66 48 (181) 999 / incoming resources before transfers Gross 13 - - - - - transfers between funds Net outgoing (295) 66 48 (181) 999 / incoming resources for the year

23 RNIB Specialist Learning Trust Statement of Financial Activities for the Year Ended 31 August 2015 (including Income and Expenditure Account and Statement of Total Recognised Gains and Losses) - continued

Note Unrestricted Restricted Restricted Total Total Funds General Fixed Asset 2015 2014 Funds Funds £000 £000 £000 £000 £000 Net outgoing / incoming resources (295) 66 48 (181) 999 for the year Actuarial loss on 19 (47) - - (47) (86) defined benefit Net movement in (342) 66 48 (228) 913 funds Total funds brought forward at 1 September 620 26 267 913 - 2014 Total funds carried forward at 31 August 278 92 315 685 913 2015

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

A Statement of Total Recognised Gains and Losses is not required as all gains and losses are included in the Statement of Financial Activities.

24 RNIB Specialist Learning Trust Balance Sheet as at 31 August 2015 Notes 2015 2015 2014 £000 £000 £000 Fixed assets Tangible assets 10 1,507 1,288

Current assets Debtors 11 253 156 Cash at bank and in hand 132 398

385 554 Liabilities Creditors: amounts falling due within one year 12 427 237

Net current liabilities / assets (42) 317

Net assets excluding pension liability 1,465 1,605

Pension liability (780) (692)

Net assets including pension liability 685 913

Funds of the Academy Trust: Restricted income funds - General fund 13 92 26 - Fixed Asset fund 13 315 267

Total restricted funds 407 293 Unrestricted income funds - General fund 13 1,058 1,312 - Pension liability 19 (780) (692)

Total unrestricted funds 278 620

Total funds 685 913

The financial statements on pages 24 to 46 were approved by the Trustees, and authorised for issue on 22 December 2015 and are signed on their behalf by:

Sally Harvey Chair of Trustees Cash Flow Statement for the Year Ended 31 August 2015 2015 2014 Notes £000 £000 25 RNIB Specialist Learning Trust

Net cash inflow from operating activities 16 34 435 Capital expenditure (300) (37)

Decrease / increase in cash in the year (266) 398

26 RNIB Specialist Learning Trust Notes to the Financial Statements for the Year Ended 31 August 2015

1 Statement of accounting policies The principal accounting policies adopted in the preparation of these financial statements are as follows:

Basis of preparation The financial statements have been prepared under the historical cost convention in accordance with applicable accounting standards in the United Kingdom, the Charities Commission Statement of Recommended Practice – “Accounting and Reporting by Charities” (SORP 2005) as revised in May 2008, the Charities Act 2011 and the Academies Accounts Direction issued by the EFA 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 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 company 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. On the basis of this assessment, the financial statements are prepared on a going concern basis.

Incoming resources All incoming resources are recognised when the Academy Trust 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.

27 RNIB Specialist Learning Trust Notes to the Financial Statements for the Year Ended 31 August 2015 – continued

Statement of accounting policies – continued 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.

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 Trust are recognised at their open market value in the period in which they are receivable as incoming resources, where the benefit to the Academy 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 Academy Trust‘s policies.

Resources expended All 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.

28 RNIB Specialist Learning Trust Notes to the Financial Statements for the Year Ended 31 August 2015 - continued

Statement of accounting policies – continued Charitable Activities These are costs incurred on the Academy Trust’s educational operations.

Governance Costs These include the costs attributable to the Academy Trust’s compliance with constitutional and statutory requirements, including audit, strategic management and Trustees’ meetings and reimbursed expenses.

All resources expended are inclusive of irrecoverable VAT.

Fixed assets Assets costing £2,500 or more are capitalised as tangible fixed assets and are carried at cost, net of depreciation and any provision for impairment.

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 Trust’s depreciation policy.

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

Leasehold land and buildings 50 years Equipment 3 or 5 years

29 RNIB Specialist Learning Trust Notes to the Financial Statements for the Year Ended 31 August 2015 – continued

Statement of accounting policies – continued 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 fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of Financial Activities.

Leased Assets Rentals under operating leases are charged over the lease term.

Taxation The Academy 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 Academy 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.

Pensions Benefits Retirement benefits to employees of the Academy 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 Academy 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 Academy 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 19, the TPS is a multi- employer scheme and the Academy 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.

30 RNIB Specialist Learning Trust Notes to the Financial Statements for the Year Ended 31 August 2015 – continued

Statement of accounting policies – continued The LGPS is a funded scheme and the assets are held separately from those of the Academy 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.

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 Trustees.

Restricted fixed asset funds are resources which are to be applied to specific capital purposes imposed by the Education Funding Agency or Department for Education 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 Education Funding Agency or Department for Education.

31 RNIB Specialist Learning Trust Notes to the Financial Statements for the Year Ended 31 August 2015 - continued 2 Acti vitie s for Gen erati ng Fun ds Unrestricted Restricted Total Total Funds Funds 2015 2014 £000 £000 £000 £000 Catering income 15 - 15 9 Rental 1 - 1 1 income Miscellaneou 4 - 4 9 s income Total 20 - 20 19

3 Funding for the Academy Trust’s Educational Operations Unrestricted Restricted Total Total Funds Funds 2015 2014 £000 £000 £000 £000 DfE / EFA grants General 1,198 Annual Grant 3 1,317 1,320 Start Up - - - 125 Grants Capital - 103 103 337 Grants Total 3 1,420 1,423 1,660

4 Resources Expended Staff Non Pay Expenditure Total Total Costs Premises Other Costs 2015 2014 £000 £000 £000 £000 £000

Direct costs 1,096 - 27 1,123 1,069 Support costs 26 100 358 484 367 Governance costs including - - 17 42

32 RNIB Specialist Learning Trust allocated support costs 17 Total 1,122 100 402 1,624 1,478

Outgoing resources for the year include: Fees payable to auditor - audit - - 15 15 9

33 RNIB Specialist Learning Trust Notes to the Financial Statements for the Year Ended 31 August 2015 – continued 5. Charitable Activities – Academy’s Educational Operations

Unrestricted Restricted Total Total Funds Funds 2015 2014 £000 £000 £000 £000

Direct Costs

Unrestricted Restricted Total Total Funds Funds 2015 2014 £000 £000 £000 £000 Teaching and - 1,096 1,096 1,021 educational support staff costs Educational - 14 14 8 supplies Staff - 4 4 4 development Other direct - 9 9 5 costs Total direct - 1,123 1,123 1,038 costs

Support costs Unrestricted Restricted Total Total Funds Funds 2015 2014 £000 £000 £000 £000 Support staff - 26 26 150 costs Depreciation - 83 83 28 Technology - - - 4 costs Recruitment - 6 6 4 and support Maintenance of 17 (2) 15 45 premises and equipment Rent and rates - 2 2 1 Energy costs 14 - 14 21 Insurance 2 - 2 7 Security and 7 - 7 5 transport Catering 55 - 55 40 Pension costs 41 - 41 31 Other support 165 68 233 62 costs Total support 301 183 484 398

34 RNIB Specialist Learning Trust costs Total costs 301 1,306 1,607 1,436

35 RNIB Specialist Learning Trust Notes to the Financial Statements for the Year Ended 31 August 2015 - continued

6 Governance Costs Unrestricted Restricted Total Total Funds Funds 2015 2014 £000 £000 £000 £000

Legal and professional fees - - - 33 Auditors’ remuneration 17 - 17 9

Total governance costs 17 - 17 42

7 Staff Costs Staff costs during the year were: 2015 2014 £000 £000

Wages and salaries 765 761 Social security costs 54 53 Pension costs 90 101 Supply teacher costs 187 106

Total 1,096 1,021

The average number of persons (including senior management team) employed by the Academy Trust during the year expressed as full time equivalents was as follows:

2015 2014 Charitable activities Teachers 3 7 Administration and support 17 19 Management 1 1

Total 21 27

36 RNIB Specialist Learning Trust Notes to the Financial Statements for the Year Ended 31 August 2015 - continued

Staff Costs - continued The number of employees whose emoluments fell within the following bands was:

2015 2014 £70,001 - £80,000 0 1

The above employee participated in the Teachers’ Pension Scheme. During the year ended 31 August 2015 pension contributions for this member of staff amounted to £10,617. The other employees participated in the Local Government Pension Scheme, pension contributions amounted to £35,054.

8 Related Party Transactions – Trustees’ Remuneration and Expenses The Executive Headteacher does not receive remuneration from the Academy Trust in respect of services they provide undertaking the role of Executive Headteacher or in respect of their services as Trustees. The charge for the services for the role of Executive Headteacher is paid to RNIB. Other Trustees did not receive any payments from the Academy Trust in respect of their role as Trustees.

9 Trustees’ and Officers’ Insurance In accordance with normal commercial practice the academy has purchased insurance to protect Trustees and officers from claims arising from negligent acts, errors or omissions occurring whilst on academy business. The insurance provides cover up to £1,000,000 on any one claim and the cost for the year ended 31 August 2015 was included within the overall cost of insurance of £1,519.

37 RNIB Specialist Learning Trust Notes to the Financial Statements for the Year Ended 31 August 2015 - continued 10 Tangible Assets Leasehold Equipment Total Land and £’000 £’000 Buildings £’000 Cost Balance at 1 September 2014 1,279 37 1,316 Additions - 300 300

At 31 August 2015 1,279 337 1,616

Depreciation Balance at 1 September 2014 25 3 28 Charged in year 25 56 81

At 31 August 2015 50 59 109

Net book values At 31 August 2015 1,229 278 1,507 At 31 August 2014 1,254 34 1,288

11 Debtors 2015 2014 £000 £000

VAT recoverable 30 25 Prepayments and accrued income 223 131

Total debtors 253 156

12 Creditors: Amounts falling due within one year 2015 2014 £000 £000

Trade creditors - 230 Accruals and deferred income 157 7 Other creditors 40 - Intercompany creditor 230 -

Total creditors: amounts falling due within one year 427 237

38 RNIB Specialist Learning Trust Notes to the Financial Statements for the Year Ended 31 August 2015 – continued 13 Funds

Restricted general funds Balance at Incoming Resources Gains, Balance at 31 August Resources Expended Losses and 31 August 2014 £000 £000 Transfers 2015 £000 £000 EFA funding - 1,258 (1,251) 85 92

Restricted Fixed Asset funds Balance at Incoming Resources Gains, Balance at 31 August Resources Expended Losses and 31 August 2014 £000 £000 Transfers 2015 £000 £000 DfE/EFA 267 103 (55) - 315 capital grants

Other Restricted funds Balance at Incoming Resources Gains, Balance at 31 August Resources Expended Losses and 31 August 2014 £000 £000 Transfers 2015 £000 £000 Pupil 26 59 - (85) - Premium funds Total 293 1,420 (1,306) - 407 restricted funds

Unrestricted funds Balance at Incoming Resources Gains, Balance at 31 August Resources Expended Losses and 31 August 2014 £000 £000 Transfers 2015 £000 £000 Total 620 23 (318) (47) 278 unrestricted funds Total funds 913 1,443 (1,624) (47) 685

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

39 RNIB Specialist Learning Trust

The capital grant was provided to fund work to improve the school.

The pupil premium funds are provided to give additional support to young people who have been registered as eligible for free school meals or have left care under specific circumstances.

Under the funding agreement with the Secretary of State, the Academy Trust was not subject to a limit on the amount of General Annual Grant that it could carry forward at 31 August 2015.

40 RNIB Specialist Learning Trust Notes to the Financial Statements for the Year Ended 31 August 2015 - continued

Unrestricted Restricted Total 2014 Total Funds Funds £000 Funds Funds £000 £000 £000

Tangible fixed assets 1,192 315 1,507 1,288 Current assets 293 92 385 554 Current liabilities (427) - (427) (237) Pension scheme liability (780) - (780) (692)

Total net assets 278 407 685 913

14 Capital Commitments At 31 August 2015 there were no capital commitments (2014: £267,000).

15 Financial Commitments At 31 August 2015 the Academy Trust had no annual commitments under non-cancellable operating leases (2014: £nil).

16 Reconciliation of Net Income to Net Cash Inflow from Operating Activities 2015 2014 £000 £000

Net income (181) 999 Non cash gift in kind - (1,279) Depreciation (note10) 81 28 Increase in debtors (97) (156) Increase in creditors 190 237 Increase in pension deficit 41 606

Net cash inflow from operating activities 34 435

17 Contingent Liabilities The Trust had no contingent liabilities at 31 August 2015 or 31 August 2014.

Notes to the Financial Statements for the Year Ended 31 August 2015 - continued 18 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 41 RNIB Specialist Learning Trust 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.

19 Pension and Similar Obligations 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 West Midlands Pension Fund. 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 related to the year ended 31 March 2004 and of the LGPS 31 March 2013.

There were no outstanding or prepaid contributions at either the beginning or the end of the financial year.

Teachers’ Pension Scheme Introduction The Teachers’ Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pensions Regulations (2010). These regulations apply to teachers in schools that are maintained by local authorities and other educational establishments, including academies, in England and Wales. In addition teachers in many independent and voluntary-aided schools and teachers and lecturers in some establishments of further and higher education may be eligible for membership. Membership is automatic for full-time teachers and lecturers and from 1 January 2007 automatic too for teachers and lecturers in part-time employment following appointment or a change of contract. Teachers and lecturers are able to opt out of TPS.

42 RNIB Specialist Learning Trust Notes to the Financial Statements for the Year Ended 31 August 2015 - continued 19 Pension and Similar Obligations - continued The Teachers’ Pension Budgeting and Valuation Account Although members may be employed by various bodies, their retirement and other pension benefits are set out in regulations made under the Superannuation Act (1972) and are paid by public funds provided by Parliament. The TPS is an unfunded scheme and members contribute on a ‘pay as you go’ basis – these contributions along with those made by employers are credited to the Exchequer under arrangements governed by the above Act.

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

Valuation of the Teachers’ Pension Scheme At the last valuation, the contribution rate to be paid into the TPS was assessed in two parts. First, a standard contribution rate (SCR) was determined. This is the contribution, expressed as a percentage of the salaries of teachers and lecturers in service or entering service during the period over which the contribution rate applies, which if it were paid over the entire active service of these teachers and lecturers would broadly defray the cost of benefits payable in respect of that service. Secondly, a supplementary contribution is payable if, as a result of the actuarial review, it is found that accumulated liabilities of the Account for benefits to past and present teachers, are not fully covered by standard contributions to be paid in future and by the notional fund built up from past contributions. The total contribution rate payable is the sum of the SCR and the supplementary contribution rate.

The last valuation of the TPS related to the period 1 April 2001 to 31 March 2004. The Government Actuary’s report of October 2006 revealed that the total liabilities of the Scheme (pensions in payment and the estimated cost of future benefits) amounted to £166,500 million. The value of the assets (estimated future contributions together with the proceeds from the notional investments held at that valuation date) was £163,240 million. The assumed real rate of return was 3.5 per cent in excess of prices and 2 per cent in excess of earnings. Notes to the Financial Statements for the Year Ended 31 August 2015 - continued 19 Pension and Similar Obligations - continued The rate of real earnings growth was assumed to be 1.5 per cent. The assumed gross rate of return was 6.5 per cent. From 1 January 2007, the SCR was assessed at 19.75 per cent, and the supplementary contribution rate was assessed to be 0.75 per cent (to balance assets and liabilities as required by the regulations within 15 years). This resulted in a total contribution rate of 20.5 per cent, which translated into an employee contribution rate of 6.4 per cent and employer contribution rate of 14.1 per cent payable.

43 RNIB Specialist Learning Trust Actuarial scheme valuation are dependent on assumptions about the value of future costs, the design of benefits and many other factors, Many of these assumptions are being considered as part of the work on the reformed TPS, as set out below. Scheme valuations therefore remain suspended. The Public Service Pensions Bill, which is being debated in the House of Commons, provides for future scheme valuations to be conducted in accordance with Treasury directions. The timing of the next valuation has still to be determined, but it is likely to be before the reformed schemes are introduced in 2015.

Teachers’ Pension Scheme Changes Lord Hutton published his final report in March 2011 and made recommendations about how pensions can be made sustainable and affordable, whilst remaining fair to the workforce and taxpayer. The Government accepted Lord Hutton’s recommendations as the basis for consultation and Ministers engaged in extensive discussions with trade unions and other representative bodies on reform of the TPS. Those discussions concluded on 9 March 2012 and the Department published a Proposed Final Agreement, setting out the design for a reformed TPS to be implemented from 1 April 2015.

The key provisions of the reformed scheme include: a pension based on career average earnings; an accrual rate of 1/57th; and a Normal Pension Age equal to the 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.

44 RNIB Specialist Learning Trust Notes to the Financial Statements for the Year Ended 31 August 2015 - continued 19 Pension and Similar Obligations - 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 per cent basis.

Under the definitions set out in Financial Reporting Standard (FRS 17) Retirement Benefits, the TPS is a multi-employer pension scheme. The academy is unable to identify its share of the underlying assets and liabilities of the scheme. Accordingly, the academy has taken advantage of the exemption in FRS 17 and has accounted for its contributions to the scheme as if it were a defined contribution scheme. The academy has set out above the information available on the scheme. The total employer contributions to the Teachers Pension Scheme for the year to 31 August 2015 was £46,824.

Local Government Pension Scheme The LGPS is a funded defined-benefit scheme, with the assets held in separate trustee- administered funds. The total contribution made for the year ended 31 August 2015 was £59,300, of which employer’s contributions totalled £42,593 and employees’ contributions totalled £16,708. The agreed contribution rates for future years are 15 per cent for employers and 5.5, 5.8 and 6.5 per cent for employees.

45 RNIB Specialist Learning Trust Notes to the Financial Statements for the Year Ended 31 August 2015 - continued 19 Pension and Similar Obligations - continued Principal Actuarial Assumptions At 31 August At 31 August 2015 2014 Rate of increase in salaries 4.15 per cent 3.95 per cent Rate of increase for pensions in payment/inflation 2.40 per cent 2.20 per cent Discount rate for scheme liabilities 4.00 per cent 4.00 per cent Inflation assumption (CPI) 2.40 per cent 2.20 per cent

The current mortality assumptions include sufficient allowance for future improvements in mortality rates. The assumed life expectations on retirement age 65 are: At 31 August At 31 August 2015 2014 Retiring today Males 23.0 22.9 Females 25.2 25.5

Retiring in 20 years Males 25.6 25.1 Females 28.0 27.8

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 2015 (per 2015 2014 (per 2014 cent) (£’000) cent) (£’000) Equities 7.0 116 7.0 56 Government Bonds 2.9 14 2.9 9 Other Bonds 3.8 20 3.8 12 Property 6.2 16 6.2 10 Cash/liquidity 0.5 10 0.5 5 Other 7.0 188 7.0 28 Total market value of assets 194 120 Present value of scheme liabilities - Funded 974 812 Surplus/(deficit) in the scheme (780) (692) Notes to the Financial Statements for the Year Ended 31 August 2015 - continued 19 Pension and Similar Obligations - continued The actual return on scheme assets was £7,000 (2014: £8,000).

Amounts recognised in the statement of financial activities 2015 2014

46 RNIB Specialist Learning Trust £000 £000

Current service cost (net of employee contributions) 64 49 Past service cost - -

Total operating charge 64 49

Analysis of pension finance income Expected return on pension scheme assets (9) (4) Interest on pension liabilities 34 31

Pension finance income 89 76

The actuarial 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 £47,000 loss (2014: £86,000 loss).

Movements in the present value of defined benefit obligations were as follows: 2015 2014 £000 £000

At 1 September 812 - Current service cost 64 49 Interest cost 34 31 Employee contributions 19 15 Actuarial (gain)/loss 45 91 Business Combinations - 626

At 31 August 974 812

Notes to the Financial Statements for the Year Ended 31 August 2015 - continued 19 Pension and Similar Obligations - continued

Movements in the fair value of Academy’s share of scheme assets: 2015 2014 £000 £000

At 1 September 120 - Expected return on assets 9 4 Actuarial (loss)/gain (2) 5 Business Combinations - 51 Employer contributions 48 45 Employee contributions 19 15

47 RNIB Specialist Learning Trust At 31 August 194 120

The estimated value of employer contributions for the year ended 31 August 2016 is £49000.

The five-year history of experience adjustments is as follows:

2015 2014 £000 £000

Present value of defined benefit obligations 974 812 Fair value of share of scheme assets (194) (120) Deficit in the scheme 780 692

Experience adjustments on share of scheme assets: (2) 5

20 Related Party Transactions RNIB is the controlling corporate member and has provided support at cost to the Trust during the year.

48 i