Finham Park School (A Company Limited by Guarantee)
Report and Financial Statements
Year Ended
31 August 2013
Company Number 7700317
I BDO Fin ham Park School
Report and financial statements for the year ended 31 August 2013
Contents
Page:
1 Reference and administrative details
3 Trustees' report
12 Governance statement
16 Statement on regularity, propriety and compliance
16 Statement of trustees' responsibilities
17 Independent auditor's report
19 Independent reporting auditor's assurance report on regularity
21 Statement of financial activities
22 Balance sheet
23 Cash flow statement
24 Notes forming part of the financial statements Finham Park School
Reference and administrative details for the year ended 31 August 2013
Trustees
Peter Burns" (Chair) Mercer Mottram" (Vice Chair) Perihan Yavash Alethea Fuller John Blundell"' Mark Bailie * (Headteacher and accounting officer) Dhiran Vagdia* Laura Dodd Chloe Agg (resigned 16/3/13) Jayne Armitage Mark Hughes Kerry Blakeman Rachel Goves Kalwinder Sandhu" Catherine Colby-Johnson Aaron Tighe Paul Bates Phil Kerry Fanny Anderson (appointed 15/5/13)
" Member of the finance committee
Senior Leadership Team
Mark Bailie Headteacher Mandy Gilmore Business Manager Russell Plester Deputy Headteacher Vivien Maginnis Deputy Headteacher Jo Brake Assistant Headteacher Matt Gaynon Assistant Headteacher Foorkan Kiddy Assistant Headteacher Sarah Megeney Assistant Headteacher Warwick Webster Assistant Headteacher Ryan Downie Head of Sixth Form
Company Secretary
Mandy Gilmore Finham Park School
Reference and administrative details for the year ended 31 August 2013 (continued)
Principal and registered office
Finham Park School, Green Lane, Coventry, CV3 6EA.
Independent auditor
BDO LLP, 125 Colmore Row, Birmingham, B3 3SD.
Bankers
Lloyds TSB, 2nd Floor, 30 High Street, Coventry, CV1 5RA.
Solicitors
Baker Small Solicitors, 494 Midsummer Boulevard, Milton Keynes, MK9 2EA.
Company number
7700317 Finham Park School
Trustees' report for the year ended 31 August 2013
The trustees, who are also directors for the purposes of company law and make up the trust's governing body, present their report and audited financial statements of Finham Park School (hereafter referred to as the school, or academy, or charitable company) for the year ended 31 August 2013
STRUCTURE, GOVERNANCE AND MANAGEMENT
Constitution The school 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. It was incorporated on 11 July 2011.
Details of trustees who served throughout the year except as noted are included in the reference and administration details on page 1.
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.
Members and trustees' indemnities The school has purchased insurance to protect all trustees, trustees and members of the school from claims arising from negligent acts, errors or omissions occurring whilst on academy business. The insurance provides cover up to £5,000,000 for trustees' liability on any one occurrence.
Principal activities The principal activity of Finham Park School is to advance education for the public benefit by establishing, maintaining, carrying on, managing of and developing a school offering a broad curriculum with strong emphasis on, but in no way limited to mathematics and computing.
Method of recruitment and appointment or election of trustees Article 50 of the articles of association states that up to 20 trustees may be appointed comprising;
• any staff trustees; • up to 9 community trustees; • a minimum of two parent trustees; • the head teacher • any additional trustees as required
Additionally the Secretary of State may also appoint additional trustees, in certain circumstances, and the governing body may appoint up to 3 co-opted trustees.
The governing body may appoint staff trustees through such process as they may determine, provided that the total numbers of trustees (including the head teacher) who are employees of the academy trust does not exceed one third of the total numbers of trustees.
The head teacher shall be treated for all purposes as being an ex officio governor.
Except for the head teacher, trustees are subject to retirement after 4 years of service but are eligible for re- appointment or re-election at the meeting at which they retire.
Organisational structure The governing body is responsible for the strategic direction of the academy. The governing body reviews progress towards educational objectives and results. They also approve major expenditure requests, set the budget for the following year, and set the organisational staffing structure.
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Trustees' report for the year ended 31 August 2013 (continued)
STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)
Policies and procedures adopted for the induction and training of trustees Training and induction provided for new trustees will depend on their existing experience. Our trustees are given the opportunity to attend training sessions at any time during the year. Where necessary induction will provide training on charity, educational legal and financial matters. Upon conversion, all trustees attended a training session ran by the Specialist Schools & Academies Trust on the legal framework and the role and responsibilities of being an academy trustee. Each year the trustees will be offered updates on relevant issues and changes in legislation. The topics covered are regularly reviewed to ensure that trustees are kept as up to date as possible.
There are five trustee committees in place to which specific responsibilities are delegated by the main governing body:
• The finance committee meets half termly, to consider the financial position of the academy. It has limited delegated powers to approve revenue and capital expenditure, disposal of assets and risk. • The personnel committee reviews issues relating to human resources, and approves changes to the staffing structure of the academy. • The resources committee reviews issues relating health and safety, premises and projects. • The experience & outcomes committee monitors those issues around curriculum provision — ensuring statutory obligations are met; examination outcomes and intervention strategies used to support the learning progress of key student groups across the school, • The learning & support committee reviews teaching quality; provision of Continuing Professional Development; pastoral support; and monitors safeguarding for all students at the academy.
The head teacher is the designated accounting officer of the academy and has overall responsibility for the day to day financial management of the charitable company. The head teacher has delegated responsibility for low values of expenditure to specific budget holders who are each responsible for managing their own departments within the constraints of their allocated budgets. A system of financial controls is in place to manage this process.
The head teacher manages the academy on a daily basis supported by the senior leadership team. The senior leadership team meets frequently to discuss emerging matters and to help to develop strategies for future development to be put to the head teacher and the governing body, as required, for approval. Each member of the senior leadership team has specific responsibilities to assist the head teacher to manage certain aspects of the academy.
Risk management The major risks to which the academy is exposed are as follows: • Loss of (or reduction in) funding • Loss of building or facilities preventing the delivery of education • Loss of members of staff (either sudden or gradually over time) • Loss of reputation • Lack of safeguarding of students • Breach legislation, such as health & safety. • Funding of pension deficits under the LGPS scheme.
The academy leadership team has considered these risks. Policies and procedures have been put into place to minimise these risks, including budget management and forecasting procedures, the procurement of adequate insurance cover, investing in staff training and continuing professional development, and continued local marketing and advertising highlighting the achievement of our students. We include a budgeted reserve for staff cover costs, and maintain a large number of policies and procedures which protect our staff, students and the academy, also reducing the risk of safeguarding failures. The school also engages the support of professional legal advice to help reduce the risk of employment tribunal liability, and has created a business continuity plan, which addresses the imperative to provide continuous education for students in the event of unforeseen occurrence.
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Trustees' report for the year ended 31 August 2013 (continued)
STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)
Risk management (continued) The pension scheme is reviewed by qualified actuaries on behalf of the academy. There is currently a deficit on this scheme as disclosed in note 25. The trustees of the LGPS pension scheme arrange for appropriate contribution rates to be paid by the members and the employer to ensure that the pension scheme is properly funded over time.
Connected organisations including related party relationships The school is not sponsored through any organisation and receives its funding from central government. There are no trustees on any of the committees who provide sponsorship.
OBJECTIVES, STRATEGIES AND ACTIVITIES
This was the second full year of operation for Finham Park School. The academy was opened for students on ft August 2011 in the buildings of the old school. Staff successfully transferred to work at the academy on this date and the impact upon staff of working for the academy has been minimal.
Leadership Over the last two years we have successfully co-opted three colleagues onto the senior leadership team on a voluntary basis. This has several benefits — an opportunity to refresh our team dynamic and hear new ideas and a superb piece of professional development for the individual colleague.
Strategic Planning The advantages of our long term planning cycle were commented on by HMI colleagues during their visit in November 2012 and so we have continued to use this format again for the future. This year has seen a complete revision of our whole school Strategic Framework. The 2013-2016 strategic framework has been finalised. This year our 'Boston Consulting Group' system for identifying key issues has engaged all staff —teaching and associate colleagues.
Strategic Framework 2013-2016
WS1 LEARNING WS2 SUPPORT WS3 WS4 WS5 OUTCOMES WS6 RESOURCE EXPERIENCE LEADERSHIP Provide a "World Develop a Ensure every Ensure the Class" learning "World Class" Ensure that all Deliver a "World learner achieves school has the experience for all College System students enjoy a Class" education academid accommodation through the where academic "World Class" so that, through success and and resource to development of performance is curriculum that a culture of strives toward deliver our outstanding & underpinned by is personalised personalisation personal "World Class" inspirational outstanding and encourages and co- excellence education for the teaching: care, guidance outstanding construction next 50 years: and support for contributions with shared every student: toward a leadership, the cohesive school secures OB2L: community: deep experience, OB2L: Communication OB2L: deep support Performance skills Transition & and deep indicators transfer OB2L: learning for all Student support, Learning its students: relationships & strategies & the OB2L: views curriculum Access to ICT Multi-disciplinary Family teaming interventions Extended Behaviour & Learning attendance
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Trustees' report for the year ended 31 August 2013 (continued)
OBJECTIVES, STRATEGIES AND ACTIVITIES (continued)
Strategic Framework 2013-2016(continued)
WSla (MG/JB) WS2a (Ho C) WS3a (WW) WS4a (MB) WS5a (SM) WS6a (MB/Gov)
Develop high Further develop Ensure all our Innovate Finham Maximise Develop a '10 quality the individual parents feel Park model for opportunities year Grand Plan' Assessment for identity and engaged and are supporting provided by MIS for new build & Learning and ethos of each able to support teacher to ensure all refurbishment of ensure best College their child's development & teachers have a school buildings practice is shared learning at home reward clear on our site (2013/14 focus on understanding of personalising student progress learning & & intervene formative effectively feedback) WSW (MG) WS2b (FK) W53b (VM) WS4b (RP) WS5b (SM) WS6b (MG)
Develop the Further develop Ensure all our Embed a culture Further develop Ensure our highest quality the individual parents feel where well-being systematic accounting & homework identity and ethos engaged and are is used as a approach to administrative experiences to of each College able to support foundation for closing gaps systems & deepen & extend their child's school between groups of procedures allow learning learning at home improvement students us to demonstrate 'value for money' WS1c (AF&PK) WS2c (FK) WS3c (VM/PP) WS4c (RP/JJ) W55c (SM) WS6c (MG)
Ensure literacy & Ensure our BfL Ensure use of Consolidate Review & Develop external numeracy skills Policy is applied Pupil Premium Student Voice & implement funding streams are developed consistently & has funding is Leadership revisions to our within subject high impact strategic and programmes recording & areas & across across the school provides value for reporting systems the school money to ensure maximum impact on learning WS1d (JB) WS2d (FK) WS3d (WW) W54d (MB) WS5d (KH) WS6d (MH)
Ensure Training Ensure quality Provide a Ensure effective Ensure impact of Ensure catering School & CEIAG has high comprehensive wider partnerships International services offer Teaching School impact on student programme of (National Support School status value for money Alliance activity destinations & enrichment & School) & staff while meeting the impacts on staff retention in extension deployment terms of our development, education (RPA) activities Healthy Schools improving the commitment student experience at Finham Park WS1e (MG) WS2e (WW) W83e (AT/LP) W54e (VM) WS5e (PP) WS6e (JBO
Implement Ensure effective Further enhance ICT Strategic plan Ensure attainment Develop current pedagogies, use & impact of opportunities for gaps are reduced school including the use Pupil Attitudes to 'any time' learning for target groups environment of new Self & School of students technologies to (PASS) cross further develop phase students' independent learning skills
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Trustees' report for the year ended 31 August 2013 (continued)
OBJECTIVES, STRATEGIES AND ACTIVITIES (continued)
Resource
Buildings
Great efforts have been made to improve the school site since converting to academy status. Key work this year has included:
• The Education Funding Agency announced that our bid for roofing replacement works, submitted by 'M Projects' was successful — approximately £667,000 will be made available to us! Work on the roofs began during the summer and must be completed by March 2014 — we are delighted that the funding should be sufficient to complete all our roofs as opposed to the selection originally proposed. This also includes replacing water damaged ceiling tiles inside classrooms, canteen and other areas where there has been water damage from the roofs.
• We have engaged a firm of architects to complete a short study aimed at delivering our ambitions for a Sixth Form/Arts/Lecture Theatre facility. This will include an analysis of the site to determine location and develop our thinking for longer term replacement/development of school buildings. The firm have worked with the school before and are well known by the Local Authority for their work around the city, for example with the Building Schools for the Future programme.
• Refurbishment of B-Block toilets was completed.
• A complete refurbishment of two Science Laboratories — J23 & J25 was completed during the summer holidays.
• Our 'wow factor' project this year was the instalment of a Fitness Suite — this creates an additional indoor teaching space for the PE department — useful during the many periods of inclement weather we are experiencing! It will also be available to staff and students before and after school. We hope future planning may also allow the use of this exciting facility by parents and the wider community during school holidays. The Fitness Suite has been located in the area currently housing M-Block toilet accommodation — and Mr Kiddy (Assistant Headteacher — Support)'s office.
IT infrastructure
• This was the first year of our 'rolling programme' for ICT replacement and upgrading. We are now following a clear plan — supported by finance — to improve and enhance our ICT infrastructure for the future. This year the following works have been completed:
• Replacement of all machines in ICT (125 PCs) ✓ Re-allocating the best machines across the school (to Mathematics, English, and PLC this year) c Projector installed in Fieldside Café (for assembly / lecture / training use) ✓ Projector installed in the gym ( for assemblies and PE) ✓ Technology department has finally been integrated within the school network ✓ Upgraded hardware in Technology ✓ Increased technology in Science • Upgraded ICT equipment in Music ✓ Purchase of !Pads for PE to support Assessment for Learning ✓ Purchase of the latest developments to be able to look at potential (Nexus 7 and 10, Microsoft surface) ✓ Other smaller projects including supporting the development of the use of IPads across the school ✓ Upgraded lap-tops for teachers
Focus subjects for 2013/14 will be Media, Business Studies and Geography.
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Trustees' report for the year ended 31 August 2013 (continued)
OBJECTIVES, STRATEGIES AND ACTIVITIES (continued)
Resource (continued)
IT infrastructure (continued)
• There has been a huge focus this year in the implementation of the VLE FROG, which was bought at the end of the last academic year. An extensive programme of training, for teachers and support staff has been carried out by the e-teachers and the student FROG leaders. All students within the school had access to the system before the summer break and next year teachers will be able to provide students with work that they can access remotely 24/7.
• Within the classroom students and teachers are being made more aware of innovations in ICT through the web-site of the week provided by the head of ICT Jon Bridgeman, where he recommends tools that teachers can use to support the learning and also articles to create conversations.
Support staff
The following appointments have been made to support the work of the academy:
• Data Manager — Mr Karl Greenhalgh
Public benefit statement
The trustees have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission throughout the objectives, strategies and activities detailed within this report.
The primary purpose of Finham Park School is the advancement of education within the local area. To this end, the school has continued to develop links with local primary schools, which will lead to smooth transition from primary to secondary education for the majority of students and in turn this will contribute to the community ethos.
We have also been a key partner in Coventry City Council's City wide school improvement programme. This project aims to engage schools from primary and secondary sectors in collaborative School Improvement Groups in order to recognise a shift in accountability and support structures to a less centralised model for the future. Finham Park has joined a group called "South Six" — formed from our key partner primary schools in the area.
A whole wealth of activities have been organised during the year to ensure our young people understand their place in the local and wider communities. These have included charitable activities; organising 'afternoon tea' for elderly residents and visiting local primary schools to complete student leadership activities.
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Trustees' report for the year ended 31 August 2013 (continued)
ACHIEVEMENTS AND PERFORMANCE
Our 2013 GCSE results were a clear improvement on 2012 and, to a greater degree, English Language results stabilised and improved following the well-publicised national interventions in 2012.
• Examination reports for GCSE, A 'Level and International Baccalaureate were presented to the full governing body on Tuesday 8th October 2013 • There appears to still be significant issues around the reliability of English marking nationally — a large sample of papers from Finham Park were returned for re-marking and all were allocated additional marks by the Awarding Body. • We are aware that several subjects were affected by significant grade boundary changes that had not been communicated with teachers in schools (e.g. Art, Geography, and Science). This is likely to be as a result of the Department for Education / Office for Qualifications aiming to 'raise the standard' of GCSE qualifications — something that has received wide coverage in the media over the summer. • Governors may be interested to note that for a second year running, Mathematics GCSE results were our best ever • Advanced Level results equalled our "best ever" for the school and allowed 98% of students who applied through UCAS to take up a university place of their choice this autumn.
Admissions The school continues to be oversubscribed and we are full in every year group. Our post 16 numbers have stabilised for September 2013.
Going concern After making appropriate enquiries, the trustees have a reasonable expectation that the academy 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.
FINANCIAL REVIEW
Key financial performance indicators
Staff costs as a percentage of total income 2012/2013:
Teaching Staff 54% Academy Support Staff 20%
Staff costs for 2013/2014 (Target):
Teaching Staff 56% Academy Support Staff 21%
Most of the school's income is obtained from the DfE in the form of recurrent grants, the use of which is restricted to particular purposes. The grants received from the DIE during the year ended 31 August 2013 and the associated expenditure are shown as restricted funds in the statement of financial activities.
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Trustees' report for the year ended 31 August 2013 (continued)
FINANCIAL REVIEW (continued)
Financial and risk management objectives and policies The trustees have assessed the major risks to which the school is exposed, in particular those relating to the specific teaching, provision of facilities and other operational areas of the school, and its finances. The trustees have implemented a number of systems to assess risk and have taken steps to minimise these risks. The school has an effective system of internal financial controls, which are explained in more detail in the governance statement on page 12.
Financial review educational activities The academy has built up reserves of £12,933,343.
This was lower than originally budgeted as a result of in—year decisions being made to invest in buildings repairs and ICT refurbishment projects.
At the end of the year we have carried forward £13,303,261 in restricted capital funds; £669,703 in restricted general reserves, and £696,379 in unrestricted reserves. The balance on general restricted reserves is before deducting the defined benefit pension liability of £1,736,000, which was calculated by the actuary.
The academy has reviewed its staffing and expenditure in the light of the funding it anticipates receiving. This takes account of general government reductions, fall in the real value of grants and the known reduction in our start up grant funding. In the light of these pressures on income and expenditure the academy feels the level of reserves generated this year are reasonable in that they will allow the academy to invest and meet its targets without comprising the quality of the education offered in future years.
Reserves policy The academy holds reserves totalling £12,933,343 which include free reserves of £696,379. All expenditure is categorised according to the source of funding, including tracking unrestricted reserves.
The policy of the academy is to carry forward a prudent level of resources designed to meet the long-term cyclical needs of renewal and any other unforeseen contingencies. The academy believes that a prudent level of free reserves is between 4% and 12% of normal incoming resources.
The trustees regularly review the reserves of the academy and consider them to be sufficient for the academy's requirements and not excessive. However due to potential emerging pressures in future on the levels of funding the academy receives, the situation will be kept under review.
Investment policy The academy manages its cash by reviewing short and medium term requirements for funds. Surplus funds will be invested into bank accounts to give the best possible returns for the period of time the funds are to be invested. Apart from our main bankers (Lloyds TSB) we will restrict amounts invested in one institution to reduce risk.
During the current year we initiated a number of short term investments in order to generate optimum interest levels, with due reference to anticipated cash outflows. The interest received in respect of these investments totalled £16,330. The situation will be reviewed regularly to ensure the academy maximises its cash.
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Trustees' report for the year ended 31 August 2013 (continued)
FINANCIAL REVIEW (continued)
Endowment funds There are no endowments at the school, as no sponsors exist.
Plans for future years Finham Park School will continue to work toward its stated goal to become "World Class" by 2015, aiming to move beyond Ofsted criteria for 'Outstanding'.
Our target for summer 2014 is to gain 78% 5%A"-C grades including English and Maths and to improve the percentage of A* and B grades at AS level as well as maintaining A level results above the national average. Work continues to focus on further improving the quality of teaching and learning and the school has developed clear strategies for supporting teacher development, including the implementation of a revised Performance Related Pay Policy from September 2013. We have good links with all of the local universities and host placements for many PGCE students. There is also a strategy in place to further develop community use of the school and this will also generate additional income.
AUDITOR
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.
During the year, PKF (UK) LLP merged its business with BDO LLP. Accordingly, the audit report has been signed in the name of the merged firm.
Approved by order of the members of the governing body on /602.1 (3 and signed on its behalf by: 747-2-7
' Mr M Bailie Mr P Burns Chair Head teacher and Accounting officer
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Governance statement for the year ended 31 August 2013
Scope of responsibility
As trustees, we acknowledge we have overall responsibility for ensuring that Finham Park School has an effective and appropriate system of control, financial and otherwise. However such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives, and can provide only reasonable and not absolute assurance against material misstatement or loss.
The governing body has delegated the day-to-day responsibility to the headteacher, Mark Bailie, 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 Finham Park School Academy Trust and the Secretary of State. They are also responsible for reporting to the governing body any material weaknesses or breakdowns in internal control.
Governance
The information on governance included here supplements that described in the Trustees' Report and in the Statement of Trustees' Responsibilities. The governing body has met formally four times during the year. Attendance during the year at meetings of the governing body was as follows: Trustee Meetings attended Out of a possible
Peter Burns (Chair) 4 4 Mercer Mottram (Vice Chair) 4 4 Perihan Yavash 3 4 Alethea Fuller 4 4 John Blundell 3 4 Dhiran Vagdia 2 4 Laura Dodd 3 4 Chloe Agg 1 3 Fanny Anderson 1 1 Jayne Armitage 4 4 Mark Hughes 3 4 Kerry Blakeman 4 4 Rachel Goves 4 4 Kalwinder Sandhu 4 4 Catherine Colby-Johnson 2 3 Aaron Tighe 4 4 Paul Bates 4 4 Phil Kerry 2 4 Mark Bailie (Headteacher and Accounting Officer) 4 4
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Governance statement for the year ended 31 August 2013 (continued)
The finance committee is a sub-committee of the main governing body. Its purpose is to monitor and manage the financial position of the academy. It has delegated powers to approve revenue and capital expenditure, recommend the approval of the academy's budget and approval of disposal of assets. During the year, Mandy Gilmore, who is a qualified accountant and the school's business manager, attended all finance committee meetings. Attendance, by trustees at the meetings, in the year was as follows: Trustee Meetings attended Out of a possible
Peter Burns (Chair) 5 5 Mercer Mottram 5 5 John Blundell 1 5 Dhiran Vagdia 1 5 Ka[winder Sandhu 4 5 Mark Bailie (Headteacher and Accounting Officer) 4 5
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 Finham Park School for the year ended 31 August 2013 and up to the date of approval of the annual report and financial statements.
Capacity to handle risk
The governing body has reviewed the key risks to which the academy trust is exposed together with the operating, financial and compliance controls that have been implemented to mitigate those risks. The governing body is of the view that there is a formal on-going process for identifying, evaluating and managing the academy trust's significant risks that has been in place for the year ending 31 August 2013 and up to the date of approval of the annual report and financial statements. This process is regularly reviewed by the governing body.
The risk and control framework
The school's system of internal financial control is based on a framework of regular management information and administrative procedures including the segregation of duties and a system of delegation and accountability. In particular, it includes:
• Comprehensive budgeting and monitoring systems with an annual budget and periodic financial reports which are reviewed and agreed by the governing body. • Regular reviews by the finance committee of reports which indicate financial performance against the forecasts and of major purchase plans, capital works and expenditure programmes. • Setting targets to measure financial and other performance. • Clearly defined purchasing (asset purchase or capital investment) guidelines. • Delegation of authority and segregation of duties. • Identification and management of risks.
In addition, the trustees have comprehensive policies on internal controls which cover the types of risks the academy faces, the likelihood of the risks materialising and their subsequent treatment or termination.
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Governance statement for the year ended 31 August 2013 (continued)
The risk and control framework (continued)
The governing body has considered the need for a specific internal audit function and has appointed an internal auditor, Anne Coyle, as internal auditor to the school (previously, this role was undertaken by Adam Miles who performed responsible officer type work on behalf of the governing body). The internal auditor's role includes giving advice on financial matters and performing a range of checks on the academy trust's financial systems, in accordance with the requirements of the EFA. A termly report is provided to the governing body on the operation of the systems of control and on the discharge of the governing body's financial responsibilities.
An internal audit report dated 14 May 2013 noted that where purchase orders were approved retrospectively, this gave rise to potential risk in relation to overstatement of available budgets. The school has subsequently strengthened its ordering procedures, particularly, in respect of orders placed via the internet or by telephone.
Review of effectiveness
As accounting officer, the head teacher has responsibility for reviewing the effectiveness of the system of internal control. During the year in question the review has been informed by:
• The work of the internal auditor • The work of the external auditor. • The financial management and governance self-assessment process. • The work of the business manager within the academy trust who has responsibility for the development and maintenance of the internal control framework.
The accounting officer has been advised of the implications of the result of the review of the system of internal control by the finance committee and a plan to address weaknesses and ensure continuous improvement of the system is in place, and outstanding issues are being addressed.
Approved by order of the members of the governing body on and signed on its behalf by:
, Mr P Burns Mr M Bailie Chair Head teacher and Accounting officer
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Statement on regularity, propriety and compliance for the year ended 31 August 2013
As accounting officer of Finham Park School I have considered my responsibility to notify the academy trust governing body and the Education Funding Agency (EFA) 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's governing body 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 any instances of material irregularity, impropriety or funding non-compliance discovered to date have been notified to the board of trustees and the EFA or, if occurring after the date of this statement, will be notified to the board of trustees and the EFA.
IC z:11.? Mr M Bailie Head teacher and Accounting officer
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Statement of trustee's responsibilities for the year ended 31 August 2013
The trustees (who act as governors for Finham Park School and are also the directors of the charitable company for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with the Annual Accounts Direction issued by the Education Funding Agency, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
Company law requires the trustees' to prepare financial statements for each financial period. 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 affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, 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 accounting estimates that are reasonable and prudent;
• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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.
The trustees are responsible for ensuring that in its conduct and operation the charitable company applies financial and other controls, which conform with the requirements both of propriety and of good financial management. They are also responsible for ensuring grants received from the EFA/DfE have been applied for the purposes intended.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on 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 and signed on its behalf by:
, Mr P Burns Chair
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Independent auditor's report to the members of Finham Park School for the year ended 31 August 2013
We have audited the financial statements of Finham Park School ("the academy") for the year ended 31 August 2013 which comprises 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 and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and the Academies Accounts Direction 2013 issued by the Education Funding Agency ("the EFA").
This report is made solely to the academy'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 academy's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the academy and the academy's members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of trustees and auditor
As explained more fully in the trustees' responsibilities statement, the trustees (who are also directors of the company 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. We have been appointed as auditor under the Companies Act 2006 and report in accordance with that Act, 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.orq.uk/auditscopeukprivate.
Opinion on financial statements
In our opinion the financial statements:
• give a true and fair view of the state of the academy's affairs as at 31 August 2013 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 2013 issued by the EFA.
17 Finham Park School
Independent auditor's report to the members of Finham Park School for the year ended 31 August 2013 (continued)
Opinion on other matter prescribed by the Companies Act 2006
Incur 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;
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act requires us to report to you if, in our opinion:
• adequate and proper accounting records have not been kept in respect of the academy, or returns adequate for our audit have not been received from branches not visited by us; or
• the financial statements do not accord with the accounting records; or
• certain disclosures of trustee's remuneration specified by law are not made; or
• any information or explanation to which we are entitled has not been afforded to us.
Tobias Stephenson (Senior statutory auditor) for and on behalf of BDO LLP, statutory auditor Birmingham United Kingdom
Date i? ae )143
BDO LLP is a limited liability partnership registered in England and Wales (with registered number 0C305127).
18 Finham Park School
Independent reporting auditor's assurance report on regularity to Finham Park School and the Education Funding Agency for the year ended 31 August 2013.
In accordance with the terms of our engagement letter dated 4 November 2013 and further to the requirements of the Education Funding Agency (EFA) as included in the Academies Accounts Direction 2013, we have carried out an engagement to obtain limited assurance about whether the expenditure disbursed and income received by Finham Park School during the period 1 September 2012 to 31 August 2013 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 Finham Park School and the EFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to Finham Park School and the EFA those matters we are required to state in a report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Finham Park School and the EFA, for our work, for this report, or for the conclusion we have formed.
Respective responsibilities of Finham Park School's accounting officer and the reporting accountant
The accounting officer is responsible, under the requirements of Finham Park School's funding agreement with the Secretary of State for Education dated 12 July 2011 and the Academies Financial Handbook extant from 1 September 2012, for ensuring that expenditure diSbursed and income received is applied for the purposes intended by Parliament and the financial transactions conform to the authorities which govern them.
Our responsibilities for this engagement are established in the United Kingdom by our profession's ethical guidance and are to obtain limited assurance and report in accordance with our engagement letter and the requirements of the Academies Accounts Direction 2013. We report to you whether anything has come to our attention in carrying out our work which suggests that in all material respects, expenditure disbursed and income received during the period 1 September 2012 to 31 August 2013 have not been applied to purposes intended by Parliament or that the financial transactions do not conform to the authorities which govern them.
Approach
We conducted our engagement in accordance with the Academies Accounts Direction 2013 issued by the EFA. We performed a limited assurance engagement as defined in our engagement letter.
The objective of a limited assurance engagement is to perform such procedures as to obtain information and explanations in order to provide us with sufficient appropriate evidence to express a negative conclusion on regularity.
A limited assurance engagement is more limited in scope than a reasonable assurance engagement and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in a reasonable assurance engagement. Accordingly, we do not express a positive opinion.
Our engagement includes examination, on a test basis, of evidence relevant to the regularity and propriety of the academy trust's income and expenditure.
The nature and extent of our examination has regard to our assessment of the level of risk associated with the specific categories of income and expenditure and the potential for irregularities to be identified.
19 Finham Park School
Independent reporting auditor's assurance report on regularity to Finham Park School and the Education Funding Agency for the year ended 31 August 2013.
Conclusion
In the course of our work, except for those matters listed below, nothing has come to our attention which suggests that in all material respects the expenditure disbursed and income received during the year 1 September 2012 to 31 August 2013 has not been applied to purposes intended by Parliament and the financial transactions do not conform to the authorities which govern them.
Matter 1
Two operating leases entered into by the academy on 20 March 2013 exceeded three years in length which is a breach of the Academies Financial Handbook 2012. The leases were for £340 and £320 (per annum) respectively. Both were for 5 year terms. gOo Tobias Stephenson (senior statutory auditor) For and on behalf of BDO LLP Birmingham Date: /7 'ago
20
Finham Park School
Statement of financial activities (including income and expenditure account and statement of total recognised gains and losses) for the year ended 31 August 2013
Restricted Restricted fixed Year ended Period ended Unrestricted general asset 31 August 31 August Note funds funds funds 2013 2012 (as restated - note 8)
Incoming resources Incoming resources from generated funds: - Voluntary income 3 9,571 365 9,936 28,265 - Voluntary income - transfer from local authority 3 .. 12,446,950 - Activities for generating funds 4 423,068 201,456 624,524 587,459 - Investment income 5 16,330 16,330 6,511 Incoming resources from charitable activities - Funding for the Academy trust's educational operations 6 7,861,886 696,437 8,558,323 8,614,201
Total incoming resources 448,969 8,063,707 696,437 9,209,113 21,683,386
Resources expended Costs of generating funds - Fundraising trading 7,8 323,954 198,612 522,566 389,676 Charitable activities: - Academy trust's educational operations 7,8 7,507,473 600,699 8,108,172 8,745,271 Governance costs 7,9 11,253 11,253 16,218
Total resources expended 323,954 7,717,338 600,699 8,641,991 9,151,165
Net incoming resources before transfers 125,015 346,369 95,738 567,122 12,532,221
Gross transfers between funds 17 (202,005) 202,005
Net income/(expenditure) for the year 125,015 144,364 297,743 567,122 12,532,221
Other recognised gains and losses Actuarial losses on defined benefit pension schemes 25 57,000 57,000 (223,000)
Net movement in funds 125,015 201,364 297,743 624,122 12,309,221
Reconciliation of funds Total funds brought forward at 1 September 2012 571,364 (1,267,661) 13,005,518 12,309,221
Total funds carried forward at 31 August 2013 696,379 (1,066,297) 13,303,261 12,933,343 12,309,221
All of the Academy trust's activities derive from continuing operations during the above financial year. A statement of total recognised gains losses and income and expenditure account is not required as all gains and losses are included in the statement of financial activities.
21 Finham Park School
Balance sheet at 31 August 2013
Company number 7700317 Note 2013 2013 2012 2012
Fixed assets Tangible assets 13 12,636,322 13,005,518
Current assets Stock 12,810 14,921 Debtors 14 593,904 106,578 Cash at bank and in hand 1,697,596 1,382,016
Total current assets 2,304,310 1,503,515
Liabilities:
Creditors: amounts falling due within one year 15 (271,289) (441,812)
Net current assets 2,033,021 1,061,703
Net assets less current liabilities 14,669,343 14,067,221
Pension scheme liability 25 (1,736,000) (1,758,000)
Net assets including pension liability 12,933,343 12,309,221
Funds of the academy trust: Restricted income funds - Fixed asset fund 17 13,303,261 13,005,518 - General fund 17 669,703 490,339 - Pension reserve 17 (1,736,000) (1,758,000)
Total restricted funds 12,236,964 11,737,857
Unrestricted income funds - General fund 17 696,379 571,364
Total funds 12,933,343 12,309,221
The financial statements on pages 21 to 45 were approved by the trustees, authorised for issue on „„ //icy, and signed on their behalf by:
Mr P Burns Chair
22 Finham Park School
Cash flow statement for the year ended 31 August 2013
Year ended Period ended 31 August 31 August Note 2013 2012 (as restated- see note 20) £ £
Net cash inflow from operating activities 20 301,173 971,523
Returns on investments and servicing of finance 21 16,330 6,511
Capital expenditure 22 (1,923) (190,499)
Cash transferred on conversion to an academy trust 3 594,481
Increase in cash in the year 315,580 1,382,016
Reconciliation of net cash flow to movement in net funds
Increase in cash in the year 23 315,580 1,382,016
Net funds at 1 September 2012 23 1,382,016
Net funds at 31 August 2013 23 1,697,596 1,382,016
23 Finham Park School
Notes forming part of the financial statements for the year ended 31 August 2013
1 Accounting policies
Basis of preparation
The financial statements have been prepared under the historical cost convention on a going concern basis and in accordance with applicable United Kingdom Accounting Standards, the Charity Commission 'Statement of Recommended Practice: Accounting and Reporting by Charities' ('SORP 2005), the Academies Accounts Direction issued by the EFA and the Companies Act 2006. The comparative figures are for the 13 month period to 31 August 2012.
A summary of the principal accounting policies, which have been applied consistently, except where noted, is set out below:
Conversion to academy trust During the previous year Finham Park School converted to an academy trust. The assets and liabilities transferred on conversion from the predecessor bodies to the academy trust have been valued at their fair value being a reasonable estimate of 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 Finham Park School. The amounts have been recognised, in the comparative period, under appropriate balance sheet categories, with a corresponding amount recognised in voluntary income as net income in the Statement of Financial Activities and analysed under unrestricted funds, restricted general funds and restricted fixed asset funds.
Going concern
The governors assess whether the use of going concern is appropriate, i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the company to continue as a going concern. The governors make this assessment in respect of a period of one year from the date of approval of the financial statements.
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.
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
• Donations
Donations are recognised on a receivable basis where there is certainty of receipt and the amount can be reliably measured.
• Other income
Other income, is recognised in the year it is receivable and to the extent the goods have been provided or on completion of the service.
24 Finham Park School
Notes forming part of the financial statements for the year ended 31 August 2013 (continued)
1 Accounting policies (continued)
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 year 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 the academy trust's policies.
Resources expended
All expenditure is recognised in the year 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
These are costs incurred in attracting voluntary income, and those incurred in trading activities that raised funds.
• 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 Governors' meetings and reimbursed expenses.
All resources expended are inclusive of irrecoverable VAT.
25 Finham Park School
Notes forming part of the financial statements for the year ended 31 August 2013 (continued)
1 Accounting policies (continued)
Tangible fixed assets
Assets costing £1,000 or more are capitalised as tangible fixed assets and are carried at cost, net of depreciation and any provision for impairment.
Where 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 assets 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:
Useful life Years Rate
Leasehold land and buildings 17-125 0.8- 5.9% p.a Plant and machinery 7 14.3% p.a Furniture and equipment 5 20% p.a Computer equipment and software 3 33% p.a
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 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 on a straight line basis over the lease term.
Stock
Unsold uniforms, catering stock and stationary are valued at the lower of cost and net realisable value.
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.
26 Finham Park School
Notes forming part of the financial statements for the year ended 31 August 2013 (continued)
1 Accounting policies (continued)
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, are contracted out of the State Earnings-Related Pensions Scheme (SERPS), 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 25, 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.
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 governors.
Restricted fixed asset funds are resources which are to be applied to specific capital purposes imposed by the Education Funding Agency (EFA), the Department of Education (DfE), and other 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 EFA and DfE.
27 Finham Park School
Notes forming part of the financial statements for the year ended 31 August 2013 (continued)
2 General Annual Grant (GAG)
Under the funding agreement with the Secretary of State, the academy trust was not subject to a limit on the amount of GAG that it could carry forward as at 31 August 2013.
3 Voluntary income Year ended Period ended 31 August 31 August Unrestricted Restricted 2013 2012 funds funds Total Total £
Private donations 9,571 365 9,936 28,265 Conversion to academy trust - Fixed assets (note 13) 13,336,469 - Other assets 594,481 - Pension liability transferred (1,484,000)
9,571 365 9,936 12,475,215
4 Activities for generating funds Year ended Period ended 31 August 31 August Unrestricted Restricted 2013 2012 funds funds Total (as restated- note 8)
Hire of facilities 12,809 12,809 16,742 Catering 178,200 178,200 223,848 Sixth form consortium income 26,890 26,890 56,298 Community income 19,029 19,029 11,414 Tuition fees 40,305 40,305 41,806 Sales 16,506 16,506 34,390 Examination fees 10,829 10,829 15,083 Training provision 18,760 18,760 17,365 Contribution to trips 198,012 198,012 170,513 Other income 99,740 3,444 103,184
423,068 201,456 624,524 587,459
28
Finham Park School
Notes forming part of the financial statements for the year ended 31 August 2013 (continued)
5 Investment income Year ended Period ended 31 August 31 August Unrestricted Restricted 2013 2012 funds funds Total Total
Bank interest 16,330 16,330 6,511
6 Funding for the Academy trust's educational operations
Year ended Period ended 31 August 31 August Unrestricted Restricted 2013 2012 funds funds Total Total
DfE I EFA grants Academy building grants 696,437 696,437 29,414 General Annual Grant (GAG) (note 2) 7,704,220 7,704,220 8,378,492 Pupil premium grant 117,378 117,378 54,735
Other government grants LA and other grants 40,288 40,288 151,560
8,558,323 8,558,323 8,614,201
29
Finham Park School
Notes forming part of the financial statements for the year ended 31 August 2013 (continued)
7 Resources expended
Year ended Period ended 31 August 31 August Non pay expenditure 2013 2012 Staff costs Premises Other costs Total (as restated- note 8)
Costs of activities for generating funds 152,140 2,122 368,304 522,566 389,676
Academy's educational operations: - Direct costs 4,882,994 589,425 800,278 6,272,697 6,693,982 - Allocated support costs 1,239,521 328,626 267,328 1,835,475 2,051,289
6,122,515 918,051 1,067,606 8,108,172 8,745,271 Governance costs including allocated support costs 11,253 11,253 16,218
6,274,655 920,173 1,447,163 8,641,991 9,151,165
Incoming/outgoing resources for the year include:
Year ended Period ended 31 August 31 August 2013 2012
Charitable activities
Operating leases 54,690 74,404 Auditors remuneration - audit 8,600 8,000 - other 1,500 1,725
Gifts or hospitality payments made to staff during the year in total were under £1,000 and there was no hospitality received from third parties.
30 Finham Park School
Notes forming part of the financial statements for the year ended 31 August 2013 (continued)
8 Charitable activities - Academy trust's education operations
Year ended Period ended 31 August 31 August Unrestricted Restricted 2013 2012 funds funds Total (as restated- see below) £ £ £ £
Direct costs Teaching and education support staff costs 4,882,994 4,882,994 5,284,960 Educational supplies 524,995 524,995 616,586 Examination fees 168,640 168,640 177,775 Staff development 38,524 38,524 34,776 Educational consultancy 68,119 68,119 40,038 Depreciation 589,425 589,425 539,847
6,272,697 6,272,697 6,693,982
Allocated support costs Support staff costs 1,239,521 1,239,521 1,206,290 Depreciation 11,274 11,274 11,017 Recruitment and support 33,580 33,580 12,421 Maintenance of premises and equipment 98,676 98,676 189,475 Cleaning 11,491 11,491 11,715 Rent and rates 23,524 23,524 28,453 Other occupancy costs 186,434 186,404 189,914 Security and transport 21,857 21,857 3,413 Catering 48,755 48,755 28,666 Office overheads 149,740 149,740 290,109 Other support costs 10,623 10,653 79,816
1,835,475 1,835,475 2,051,289
8,108,172 8,108,172 8,745,271
Prior year reclassification
The comparative figures have been restated to reflect a more accurate analysis of costs in relation to school fund and catering costs and costs allocated between costs of generating funds and costs associated with the academies educational operations and governance costs. There is no impact on total costs or incoming resources.
The restatement is necessary to retain comparability between the two years.
31
Finham Park School
Notes forming part of the financial statements for the year ended 31 August 2013 (continued)
9 Governance costs Year ended Period ended 31 August 31 August Unrestricted Restricted 2013 2012 funds funds Total (as restated — note 8)
Auditor's remuneration: - Audit of financial statements 8,600 8,600 8,000 - Other 1500 1,500 1,725 Legal and professional 653 653 4,418 Clerking costs 500 500 2,075
11,253 11,253 16,218
10 Staff costs Year ended Period ended 31 August 31 August 2013 2012
Staff costs during the year were:
Wages and salaries 5,118,182 5,355,508 Social security costs 386,257 402,578 Other pension costs 770,216 749,764
6,274,655 6,507,850 86,188 79,804 Supply teacher costs Compensation payments 7,417 20,000
6,368,260 6,607,654
The average number of persons (including senior management team) employed by the academy during the year expressed as full equivalents were as follows: Year ended Period ended 31 August 31 August 2013 2012 Number Number
Charitable activities 99 Teachers 98 Administration and support 68 61 Management 10 10
176 170
32
Finham Park School
Notes forming part of the financial statements for the year ended 31 August 2013 (continued)
10 Staff costs (continued)
The number of employees whose annual emoluments fell within the following bands was:
Year ended Period ended 31 August 31 August 2013 2012 Number Number £60,001 - £70,000 2 2 £110,001 -£120,000 1 1
The above 3 (2012 - 3) employees participated in the Teachers' Pension Scheme. During the year to 31 August 2013 pension contributions for these staff amounted to £33,005 (2012 -£34,074).
11 Trustees' remuneration and expenses
The head teacher and staff trustees' only receive remuneration in respect of services they provide undertaking the role of head teacher and staff and not in respect of their services as trustees.
During the year ended 31 August 2013, no travel and subsistence expenses were reimbursed to trustees.
Related party transactions involving the trustees are set out in note 26.
The following staff trustees received remuneration as follows: Mark Bailie - head teacher and trustee £115,001 -£120,000 (2012: £110,001 -£115,000) Phil Kerry - trustee £45,001 -£50,000 (2012: £45,001 -£50,000) Aaron Tighe - trustee £35,001 -£40,000 (2012: £35,001 -£40,000) Paul Bates - trustee £15,001 -£20,000 (2012: £15,001 -£20,000)
12 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 £5m on any one claim and the cost for the year ended 31 August 2013 was £1,928.
The cost of this insurance during the previous period was included in the total insurance cost and was not separately identifiable from general insurance costs.
33 Finham Park School
Notes forming part of the financial statements for the year ended 31 August 2013 (continued)
13 Tangible fixed assets
Leasehold Computer Furniture land and Other and and buildings fixtures software fittings Total £ £ £ £ £
Cost At 1 September 2012 13,321,882 1,903 133,218 99,379 13,556,382 Additions 84,690 52,210 62,449 32,154 231,503
At 31 August 2013 13,406,572 54,113 195,667 131,533 13,787,885
Depreciation At 1 September 2012 480,546 272 53,011 17,035 550,864 Charged in year 490,635 7,731 74,809 27,524 600,699
At 31 August 2013 971,181 8,003 127,820 44,559 1,151,563
Net book values At 31 August 2013 12,435,391 46,110 67,847 86,974 12,636,322
At 31 August 2012 12,841,336 1,631 80,207 82,344 13,005,518
14 Debtors 2013 2012
Trade debtors 9,457 3,597 Prepayments 73,244 43,123 Other debtors and accrued Income 484,342 13,608 VAT recoverable 26,861 46,250
593,904 106,578
34 Finham Park School
Notes forming part of the financial statements for the year ended 31 August 2013 (continued)
15 Creditors: amounts falling due within one year 2013 2012 £ £
Trade creditors 37,732 242,428 Accruals and deferred income 233,557 199,384
271,289 441,812
16 Deferred income £
Deferred income at 1 September 2012 66,270 Resources utilised in year (66,270) Resources deferred in the year 67,436
Deferred income at 31 August 2013 67,436
Deferred income relates to trip deposits, a rates relief grant and catering income. All of which have been received in advance of the 13/14 academic year
35 Finham Park School
Notes forming part of the financial statements for the year ended 31 August 2013 (continued)
17 Funds Balance at Gains, Balance at 1 September Incoming Resources losses and 31 August 2012 resources expended transfers 2013 £ £ £ £ £
Restricted general funds General Annual Grant (GAG) 405,928 7,704,220 (7,340,612) (202,005) 567,531 Other DfE and EFA grants 22,784 117,378 (44,839) 95,323 Other government grants 56,324 35,988 (85,463) 6,849 Other restricted funds 5,303 206,121 (211,424) Pension reserve (1,758,000) (35,000) 57,000 (1,736,000)
(1,267,661) 8,063,707 (7,717,338) (145,005) (1,066,297) Restricted fixed asset funds DfE/EFA capital grants 29,414 696,437 (1,386) 724,465 Inherited fixed assets 12,785,605 (590,537) 12,195,068 Capital expenditure from GAG 190,499 (8,776) 202,005 383,728
13,005,518 696,437 (600,699) 202,005 13,303,261
Total restricted funds 11,737,857 8,760,144 (8,318,037) 57,000 12,236,964
Unrestricted funds Unrestricted funds 571,364 448,969 (323,954) 696,379
Total funds 12,309,221 9,209,113 (8,641,991) 57,000 12,933,343
The specific purposes for which the funds are to be applied are as follows:
Restricted general funds
This fund includes the General Annual Grant funding and other restricted income and expenditure relating to the running of the school. Funds are to be used in line with the specific terms of the funding agreements in place. These funds include:
General Annual Grant (GAG)
Under the funding agreement with the Secretary of State, the academy trust was not subject to a limit on the amount of GAG that could be carried forward at 31 August 2013.
DfE/EFA grants include £117,378 for the pupil premium grant receivable during the year.
36 Finham Park School
Notes forming part of the financial statements for the year ended 31 August 2013 (continued)
17 Funds (continued)
Other DfEIEFA grants
DFE/EFA grants include £117,378 for the pupil premium grant receivable during the year.
Other restricted funds
Other restricted funds income includes £198,012 from parents as contributions towards the provision of educational trips.
Restricted fixed asset fund
The restricted fixed asset fund represents the brought forward balance of the inherited fixed assets introduced from the LA upon conversion of the academy less accumulated depreciation up to 31 August 2013 together with restricted GAG funds expended on fixed assets during the year. This fund also includes an ACMF amounting to £666,939 for replacement of the school roof and other capital funding received from the EFA.
Unrestricted funds
Unrestricted funds are available to be spent on any purpose within the school's charitable objects.
18 Analysis of net assets between funds
Fund balances at 31 August 2013 are represented by:
Restricted Unrestricted Restricted fixed asset general fund general fund fund Total
Tangible fixed assets 12,636,322 12,636,322 Net current assets 696,379 669,703 666,939 2,033,021 Pension scheme liability (1,736,000) (1,736,000)
Total net assets 696,379 (1,066,297) 13,303,261 12,933,343
37
Finham Park School
Notes forming part of the financial statements for the year ended 31 August 2013 (continued)
19 Financial commitments
Operating leases
At 31 August 2013 the Academy had annual commitments under non-cancellable operating leases as follows: Other Other 2013 2012
Operating leases which expire: 3,344 47,323 Within one year In two to five years 26,517 9,402
29,861 56,725
20 Reconciliation of net income to net cash inflow from operating activities Year ended Period ended 31 August 31 August 2012 2013 (as restated— see below)
Net income 567,122 12,532,221 Depreciation (note 13) 600,699 550,864 Donations - inherited fixed assets less pension liability (note 3) - (12,446,950) Capital grants from DfE and other capital inaime (note 6) (696,437) (29,414) Interest receivable (note 5) (16,330) (6,511) FRS 17 pension cost less contributions payable (note 25) (19,000) (25,000) Pension finance costs (note 25) 54,000 76,000 Increase in debtors (note 14) (20,469) (107,208) (Decrease)/increase in creditors (note 15) (170,523) 441,812 Decrease in stocks 2,111 (14,291)
Net cash inflow from operating activities 301,173 971,523
The comparative amounts have been restated in order to show separately the cash flows derived from conversion to an academy trust during the prior year.
21 Returns on investments and servicing of finance Year ended Period ended 31 August 31 August 2013 2012
Interest received (note 5) 16,330 6,511
Net cash inflow from returns on investment and servicing of finance 16,330 6,511
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Finham Park School
Notes forming part of the financial statements for the year ended 31 August 2013 (continued)
22 Capital expenditure and financial investment
Year ended Period ended 31 August 31 August 2013 2012
Purchase of tangible fixed assets (231,503) (219,913) Capital grants from DfE/EFA 229,580 29,414
Net cash outflow from capital expenditure and financial investment (1,923) (190,499)
23 Analysis of net funds At At 1 September Cash 31 August 2012 flow 2013
Cash in hand and at bank 1,382,016 315,580 1,697,596
24 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.
25 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 (LPGS) 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 was 31 March 2004 and of the LGPS 31 March 2010.
There were no outstanding contributions or prepaid contributions at either the beginning or the end of the financial period.
Teachers' Pension Scheme
Introduction
The Teachers' Pension Scheme ("TPS") is a statutory, contributory, defined benefit scheme, governed by the Teachers Pension 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 the TPS.
39 Finham Park School
Notes forming part of the financial statements for the year ended 31 August 2013 (continued)
25 Pension and similar obligations (continued)
Teachers' Pension Scheme (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 (in excess of price increases and currently set at 3.5%), which is equivalent to assuming that the balance in the Account is 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 the 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 - 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 the valuation date) was £163,240 million. The assumed real rate of return is 3.5% in excess of prices and 2% in excess of earnings. The rate of real earnings growth is assumed to be 1.5%. The assumed gross rate of return is 6.5%. From 1 January 2007, the SCR was assessed at 19.75%, and the supplementary contribution rate was assessed to be 0.75% (to balance assets and liabilities as required by the regulations within 15 years). This resulted in a total contribution rate of 20.5%, which translated into an employee contribution rate of 6.4% and employer contribution rate of 14.1% payable.
Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. Many of these are being considered as part of the reformed TPS, as set out below. Scheme valuations therefore remain suspended. The Public Service Pension 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 for the next valuation has still to be determined, but 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.
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Finham Park School
Notes forming part of the financial statements for the year ended 31 August 2013 (continued)
25 Pension and similar obligations (continued)
Teachers' Pension Scheme (continued)
The key provisions of the reformed scheme include: a pension based on career earnings; an accrual rate of 11571h; and a Normal Pension Age equal to State Pension Age. Importantly, pensions benefits built up before 1 April 2015 will be fully protected.
In addition, the Proposed Final Agreement includes a Government commitment that those within 10 years of 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 just fall 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 of 2010 the Government announced an average increase of 3.2 percentage points on the contribution rates by 2014-15. The increases were to be phased in from April 2012 on a 40:80:100% basis.
Under the definitions set out in Financial Reporting Standard (FRS 17) Retirement Benefits, the TPS is a multi-employer pension scheme. The academy is unable to identify its share of the underlying assets and liabilities of the scheme. Accordingly, the academy has taken advantage of the exemption in FRS 17 and has accounted for its contributions to the scheme as if it were a defined contribution scheme. The academy has set out above the information available on the scheme.
Local government pension scheme (LGPS)
The LGPS is a funded defined-benefit scheme, with the assets held in separate trustee-administered funds. The total contribution made for the period ended 31 August 2013 was £294,000 (2012: £305,000) of which employer's contributions totalled £233,000 (2012: £237,000) and employees' contributions totalled £61,000 (2012: £68,000). The agreed contribution rates for future years are 23.4% per cent for employers and 6.4 - 8.8% for employees, depending on salary band.
The academy has, during the year, paid £85,459 in additional contributions towards the pension deficit. No further arrangements have been agreed in future years. 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.
Principal Actuarial Assumptions At At 31 August 31 August 2013 2012 4.15% 3.95% Rate of increase in salaries 2.4% 2.20% Rate of increase for pensions in payment/inflation Discount rate for scheme liabilities 4.5% 4.30% Inflation assumption (CPI) 2.4% 2.20%
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Notes forming part of the financial statements for the year ended 31 August 2013 (continued)
25 Pension and similar obligations (continued)
Local government pension scheme (continued)
Sensitivity analysis on the principal actuarial assumptions Increase in Increase in liability at liability at 31 August 31 August 2013 2012
Discount rate increased by 0.1% p.a 57,000 53,000 Assumed CPI inflation increased by 0.1% p.a* (59,000) (54,000) Salary growth increased by 0.1% p.a (58,000) (52,000)
*with similar movements in salary growth and pension increases
The current mortality assumptions include sufficient allowance for future improvements in mortality rates. The assumed life expectations on retirement age are 65 are:
At At 31 August 31 August 2013 2012 Retiring today Males 22.1 22.0 Females 24.8 24.7
Retiring in 20 years Males 23.9 23.8 Females 26.7 26.6
The academy's share of the assets and liabilities in the scheme and the expected rates of return were:
Expected Fair value return at At 31 August 31 August 2013 2013 £'000
Equities 7 624 Government bonds 3.4 124 Other Bonds 4.4 165 Property/infrastructure 5.7 128 Cash 0.5 60 Other 7 371
Total market value of assets 1,472
Present value of scheme liabilities - Funded 3,208
Deficit in the scheme 1,736
None of the fair values of the assets shown above include any of the academy's own financial instruments or any property occupied by, or other assets used by, the academy.
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Notes forming part of the financial statements for the year ended 31 August 2013 (continued)
25 Pension and similar obligations (continued)
Local government pension scheme (continued)
The expected rate of return on assets is the average rate of return expected over the remaining life of the related obligation on the actual assets held by the Fund. It includes both income and changes in fair value but is net of scheme expenses. It is based on market expectations at the beginning of the reporting period. This assumption is used to determine the expected return on assets for the pension expense.
The actual return on the scheme assets was £132,000 (2012 -£38,000).
Total expenditure recognised in the statement of financial activities
2013 2012
Current service cost (net of employee contributions) 214,000 212,000 Past service cost
Total operating charge 214,000 212,000
Analysis of pension finance income 2013 2012
Expected return on pension scheme assets 75,000 69,000 Interest on pension liabilities (129,000) (145,000)
Pension finance income/(costs) (54,000) (76,000)
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 £166,000 loss (2012 -£223,000 loss).
Movements in the present value of defined benefit obligations were as follows:
2013 2012
At 1 September 2,961,000 Current service cost 214,000 212,000 Interest cost 129,000 145,000 Employee contributions 61,000 68,000 Actuarial loss - 192,000 Benefits paid (157,000) (45,000) Conversion to academy trust 2,389,000
At 31 August 3,208,000 2,961,000
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Notes forming part of the financial statements for the year ended 31 August 2013 (continued)
25 Pension and similar obligations (continued)
Movements in the fair value of the academy's share of scheme assets: 2013 2012
At 1 September 1,203,000 - Expected return on assets 75,000 69,000 Actuarial gains/(losses) 57,000 (31,000) Employer contributions 233,000 237,000 Employee contributions 61,000 68,000 Benefits paid (157,000) (45,000) Conversion to academy trust 905,000
At 31 August 1,472,000 1,203,000
The five-year history of expenses adjustments is as follows:
2013 2012 2011 2010 2009 £'000 £'000 £'000 £'000 £'000
Defined benefit obligation at end of year 3,208 2,961 Fair value of plan assets at end of year 1,472 1,203
Deficit 1,736 1,758
Experience adjustments on share of scheme assets Amount £000 57 37
Experience adjustments on share of scheme liabilities Amount £000 (31)
The above analysis only shows the movements since the academy converted to academy status.
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Finham Park School
Notes forming part of the financial statements for the year ended 31 August 2013 (continued)
26 Related party transactions
Owing to the nature of the academy's operations and the composition of the board of trustees being drawn from local public and private sector organisations, it is inevitable that transactions will take place with organisations in which a member of the board of trustees may have an interest. All transactions involving such organisations are conducted at arm's length and in accordance with the academy's financial regulations and normal procurement procedures.
There were no related party transactions with trustees during the year.
27 Capital commitments
At the balance sheet date the academy had non cancellable commitments in relation to on going building works as follows. 2013 2012
Contracted for, but not provided for in the financial statements 640,575
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