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Registered Number: 06995649 (England and Wales) OUTWOOD Registered number: 06995649 (England and Wales) OUTWOOD GRANGE ACADEMIES TRUST (A company limited by guarantee) ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 Page 1 of 74 OUTWOOD GRANGE ACADEMIES TRUST CONTENTS Page Reference and Administrative Details 3 Trustees' Report 4-20 Governance Statement 21-25 Statement of Trustees' Responsibilities 26 Statement on Regularity, Propriety and Compliance 27 Independent Auditor's Report on the Financial Statements 28-30 Independent Reporting Accountant's Report on Regularity 31-32 Consolidated Statement of Financial Activities incorporating Income & Expenditure Account 33 Consolidated Balance Sheet 34 Academy Trust Balance Sheet 35 Consolidated Statement of Cash Flows 36 Notes to the Financial Statements 37-74 Page 2 of 74 OUTWOOD GRANGE ACADEMIES TRUST REFERENCE & ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 AUGUST 2020 Members Mr Roland Harden Mr David Earnshaw CBE Mr Steven Harness Mr David Tibbie Trustees Mr Christopher Dalzell, Trustee Mr David Earnshaw CBE, NLG, Chair of Trustees Mrs Sue Hague, NLG, Trustee Mr Roland Harden, Vice Chair of Trustees Mr Ralph Pickles, NLG, Trustee Mr Martyn Oliver, NLE, Ex-Officio Trustee and Chief Executive/Accounting Officer Company registered number 06995649 England and Wales Company name Principal and registered office Outwood Grange Academies Trust Potovens Lane, Outwood, Wakefield, West Yorkshire, WF1 2PF Company Secretary Mrs Katy Bradford, SLE Chief Executive and Accounting Officer Mr Martyn Oliver, NLE Senior management team Martyn Oliver, NLE Chief Executive and Accounting Officer Julie Slater, NLE, Chief Executive Principal, Secondary Lee Wilson, NLE, Chief Executive Principal Primary Katy Bradford, SLE, Company Secretary and Chief Operating Officer Ben Waterman, SLE, CIMA, Chief Financial Officer Mark Hassack, NLE and NLG, Executive Principal Lynn James, Executive Principal Dr Phil Smith OBE, NLE, Executive Principal Plus Associate Executive Principals Independent Auditors Saffery Champness LLP, Mitre House, North Park Road, Harrogate, North Yorkshire, HG1 5RX Bankers HSBC, 66 Westgate, Wakefield, West Yorkshire, WF11XB Solicitors Browne Jacobson LLP, Mowbray House, Castle Meadow Road, Nottingham NG2 1BJ Page 3 of 74 OUTWOOD GRANGE ACADEMIES TRUST TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2020 INTRODUCTION The Trustees present their annual report together with the financial statements and auditor's report of the charitable company for the year ending 31 August 2020. The annual report serves the purposes of both a trustees' report, and a directors' report under company law. The financial statements have been prepared in accordance with the accounting policies set out on pages 37 to 43 of the attached financial statements, and comply with the Charitable Company's memorandum and articles of association, the Companies Act 2006 and the requirements of Accounting and Reporting by Charities: Statement of Recommended Practice, applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), (SORP 2015). The Trust currently operates nine primary, one junior and twenty-three secondary academies across the East Midlands, Yorkshire and Humber and North East of England. For the purposes of this report, there were nine primary, one junior and twenty-two secondary academies in the financial year 2019-20. STRUCTURE, GOVERNANCE AND MANAGEMENT Constitution The Trust is a Charitable Company limited by guarantee with no share capital and an exempt charity. The Charitable Company's memorandum and articles of association are the primary governing documents of the Academy Trust, as incorporated on 19 August 2009, amended on 18 August 2011 and amended again on 17 June 2019. The Directors act as the Trustees for the charitable activities of Outwood Grange Academies Trust Limited and are also Directors of the Charitable Company for the purposes of company law. The Charitable Company is known as Outwood Grange Academies Trust (OGAT). In addition, each academy may also be referred to by their individual name e.g. Outwood Academy Acklam and the Trust's trading subsidiary, Outwood Grange Services Limited trades as the Outwood Institute of Education. Details of the Trustees who served during the year, and to the date these accounts are approved 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 £10 for the debts and liabilities contracted before they ceased to be a member. There are no indemnities awarded to any members or Trustees. Principal Activities The principal activities of the Charitable Company are to establish and maintain a number of academies in accordance with the requirements of the Master Funding Agreement in place with the Education and Skills Funding Agency (“ESFA"}. Page 4 of 74 OUTWOOD GRANGE ACADEMIES TRUST TRUSTEES，REPORT FOR THE YEAR ENDED 31 AUGUST 2020 Method of Recruitment and Appointment of Trustees The number of Trustees of the Charitable Company shall not be less than 3 but (unless determined by ordinary resolution) shall not be subject to any maximum. The articles of association permit the Members to appoint Trustees through such processes as it may determine and sets out the categories of Trustees and this includes the following: The Chief Executive/Accounting Officer ex-officio Up to eight Trustees appointed by Members Up to eight Trustees appointed by the sponsor body The Members may appoint co-opted Trustees The number of Trustees who are employees of the Charitable Company shall not exceed one third of the total number of Trustees including the Chief Executive The Members shall appoint the Trustees and may appoint co-opted Trustees Policies and procedures adopted for the induction and training of Trustees The training and induction provided for new Trustees will depend on their existing experience. Where necessary, induction will provide training on charity and educational, legal and financial matters. All new Trustees will be given the opportunity to have a tour of all the academies and the chance to meet with staff and students. All Trustees are provided with copies of policies, procedures, minutes, accounts, budgets, plans, the governor handbook and other documents, including the Academies Financial Handbook and governor/director guidance documentation from the DfE/ESFA that they will need to undertake their role as Trustees. Continuous Professional Development is undertaken throughout the year to ensure that Trustees are able to challenge and hold the Executive Board and Executive Team to account. The Board of Trustees have completed their annual skills audit in order to identify any significant skills gaps within the Board. An experienced Clerk has been appointed to support and advise the Board on matters of governance. The role maintains a level of independence from the Executive Team in order to facilitate challenge and continuous improvement from the Board. Organisational Structure The governance structure consists of five levels: the Members, the Board of Trustees, Academy Councils, the Executive and the Senior Leadership Teams within each academy. The aim of the governance structure is to devolve responsibility via the Scheme of Delegation and encourage involvement in decision making at all levels. Terms of Reference for these groups are published alongside the Scheme of Delegation to ensure that at all levels people are clear about their responsibilities. The Members meet at least annually to review the performance of the Trust and ensure that the Trustees are working within the articles of association. The Members review the Board skills audit to address any deficiency in governance. The Trustees, by the use of academic results and budgets, monitor and manage risks and make major decisions about the direction of the Trust, capital expenditure and senior staff appointments. The Trustees are responsible for setting general policy, adopting an annual plan and budget monitoring. Page 5 of 74 OUTWOOD GRANGE ACADEMIES TRUST TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2020 The Academy Councils act as advisory bodies to the OGAT Board. The Executive ¡s made up of the: Chief Executive & Accounting Officer, Chief Operating Officer, Chief Financial Officer, Chief Executive Principals - Secondary & Primary, three Regional Executive Principals (Secondary), Director of Executive Services, Executive Director of Curriculum, four Associate Executive Principals, Executive Director of the Outwood Institute of Education and Director of Business Services. Academy Senior Leadership Teams vary depending on the size of the academy but typically consist of the following: Principal, Vice Principalis), Assistant Principals and a further team, appointed under OGAT's 'Deep Leadership' model of Associates. This team also consists of Academy Business Manager, Finance Managers and the Personal Assistant to the Principal. The above leaders and managers control the individual academies at an executive/principal level implementing the policies laid down by the Trustees of the Board and reporting back to them. As a group, the senior leaders are responsible for the authorisation of spending within agreed budgets and the appointment of staff,
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