Company Registration No. 07986218 ( and Wales)

EAGLEY JUNIOR SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

ANNUAL REPORT AND ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2020 EAGLEY JUNIOR SCHOOL

CONTENTS

Page

Reference and administrative details 1

Governors' report 2 - 13

Governance statement 14 - 17

Statement on regularity, propriety and compliance 18

Statement of governors' responsibilities 19

Independent auditor's report on the accounts 20 - 22

Independent reporting accountant's report on regularity 23 - 24

Statement of financial activities including income and expenditure account 25

Balance sheet 26

Statement of cash flows 27

Notes to the accounts including accounting policies 28 - 47 EAGLEY JUNIOR SCHOOL

REFERENCE AND ADMINISTRATIVE DETAILS

Members Mr M Hayes Mrs N Ashton Mr M Taylor Mrs L Hounslea Dr H Yates (Resigned 6th September 2019)

Governors Mr M Hayes (Chair) Mr M Taylor (Headteacher and Accounting Officer) Mrs L Hounslea Mr D Warbrick Ms M L B Hickman Mrs K Hall Mrs J Roberts (Resigned 4 November 2019) Mr R T Tretheway (Resigned 4 December 2019) Mrs N Ashton (Appointed 1 September 2019) Mr M Flannery (Appointed 1 September 2019) Mr P Birchall (Appointed 1 October 2019) Miss L Mclauglin (Appointed 1 October 2019 and resigned 15 February 2020) Mrs J Barrow (Appointed 5 November 2019) Mrs R Murphy (Appointed 1 September 2020) Mrs P O'Donnell (Appointed 1 September 2020)

Senior management team - Headteacher Mr M Taylor - Deputy Headteacher Mr N Gandhi (Appointed 1 September 2019) - Senior Teacher Miss M Dawber - Senior Teacher Miss S Barclay (Appointed 1 September 2019)

Company secretary Mrs T Keegan

Company registration number 07986218 (England and Wales)

Registered office Off Chapeltown Road Bolton BL7 9AT

Independent auditor MHA Moore and Smalley Richard House 9 Winckley Square Preston PR1 3HP

Solicitors Browne Jacobson Ground Floor 3 Piccadilly Manchester M1 3BN

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GOVERNORS' REPORT FOR THE YEAR ENDED 31 AUGUST 2020

The governors present their annual report together with the accounts and auditor's report of the charitable company for the year 1 September 2019 to 31 August 2020. The annual report serves the purposes of both a trustees' report, and a directors' report under company law.

The trust operates an academy for pupils aged 7 – 11 serving a catchment area in north Bolton.

Structure, governance and management Constitution Eagley Junior School converted to Eagley Junior School (“The Academy”) on 1 June 2012. The Academy 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.

The Academy was incorporated on 12 March 2012 and commenced its activities on transfer from the Local Authority on the conversion date stated above.

The governors act as the trustees for the charitable activities of the Academy and are also the directors of the Charitable Company for the purposes of company law. The Charitable Company is known as Eagley Junior School

Details of the governors who served throughout the period, except as noted, are included in the Reference and Administrative Details on page 1.

Members' liability Each member of the Charitable Company undertakes to contribute to the assets of the Charitable Company in the event of it being wound up while 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.

Governors' indemnities The Academy has purchased indemnity insurance to protect governors and officers from claims arising in connection with Academy business. The insurance provides cover of up to £10 million on any one claim.

Principal activities The principal objective and activity of the charitable company is the operation of a school offering a broad and balanced education for pupils of mixed abilities between academic Year 3 and Year 6. The school also aims to provide facilities for out-of-hours leisure time activities in the interests of the local community where these do not conflict with the efficient running of the school. In accordance with the articles of association the charitable company has adopted a “Scheme of Government” approved by the Secretary of State for Education.

Method of recruitment and appointment or election of governors The term of office is 4 years. Governors can be reappointed if they still meet the eligibility criteria.

The Governors are appointed by the following:

4 Parent governors Elected by parents of the students of the Academy 2 Staff governors Elected by staff of the Academy 1 Trustee governor Appointed by Trustees of the Academy 4 Community governors Appointed by the governing body of the Academy

Policies and procedures adopted for the induction and training of governors All Governors are provided with copies of relevant documents (Articles, Code of Conduct, School Development Plan, Budget, etc.) on appointment. Induction training is provided by the Chair and/or Headteacher and ongoing training is provided through BMBC Governor Support Unit and officers from the school’s accountancy and solicitors firms. On-going mentoring is provided by the Headteacher and/or Chair of Governors.

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GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Organisational structure The Academy is governed by its Governing Body, whose members are directors of the charitable company for the purposes of the Companies Act 2006 and trustees for the purposes of charity legislation. The organisational structure of the Academy consists of 4 levels: the Governing Body, the subcommittees of the Governing Body, the Headteacher and the Senior Leadership Team.

The Governing Body is responsible for setting general policies, adopting a school development plan and budget, monitoring the school’s performance, making major policy decisions and appointing senior staff. Certain elements of these responsibilities are delegated to the following subcommittees who make recommendations to the full Governing Body: • Finance and Resources • Standards

Quorum is 3 for each committee.

The following standing committees meet as and when required: • Staff Appeals (including Grievance and Dismissal Appeals) • Pupil Discipline • Curriculum, SEN & General Complaints • Admissions • Pay

Nominated Roles & Responsibilities:

SEND & LAC Mrs N Ashton English Mrs K Hall Maths Mrs T O'Donnell Science Mr P Birchall Link/Partnership Governor Mr M Hayes Health & Safety Mr M Flannery Safeguarding & Child Protection Mrs G Hounslea Equal Opportunities Mrs R Murphy Relationships & PSCHE Mrs J Barrow Safer Recruitment Mr M Taylor Training Mrs M Hickman Website Mr D Warbrick

The Headteacher is also the Accounting Officer and has responsibility for ensuring financial probity.

The Senior Leadership Team comprises: • Headteacher • Deputy Headteacher • Two Senior Teachers

Arrangements for setting pay and remuneration of key management personnel The Trustees of the Academy may claim expenses in line with the provisions of the Academy’s policy for Governor expenses. The Headteacher’s pay and remuneration is determined by the provisions of the STRB pay recommendations, following a review of performance over the academic year. The review is carried out by the Pay committee which is advised by an external reviewer. The decisions of the Pay committee are ratified by the full Governing Body. The pay and remuneration of other members of the senior leadership team are made in line with the STRB pay recommendations following a review of performance carried out by the Headteacher. The Headteacher makes recommendations to the Pay committee, which are then agreed fully or in part by the committee. The Pay committee recommendations are then ratified by the full Governing Body.

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GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Related parties and other connected charities and organisations The Academy is part of a number of informal networks with which it co-operates in the pursuit of charitable activities. These include:

Cluster 1: a group of nine geographically close schools in Bolton MBC who co-operate in the areas of joint procurement, Senior Leadership CPD, moderation of work and other activities to improve standards of teaching & learning.

BCMCS Youth Theatre : the school hosts the rehearsals for this local amateur operatic society which draws its members from the local community and our pupils in particular.

Objectives and activities Objects and aims The main objects of the Academy as set out in its governing document are:

• Establishing, maintaining, carrying on, managing and developing a school offering a broad and balanced curriculum; and • To promote for the benefit of individuals living in Bolton and the surrounding environs to school the provision of facilities for recreation or other leisure time activities in the interests of social welfare and with the provision of improving the condition of life of the said individuals.

The academy aims to provide a high standard of education in a secure and caring environment.

Objectives, strategies and activities The main objectives for the period were:

• To ensure curriculum ‘end points’ and objectives are clearly mapped across all areas of the curriculum and link to school’s assessment approach. • To ensure planning, assessment and feedback systems and procedures are implemented consistently across school. • To establish and implement a ‘vision for reading’ across school. • Establish and embed positive behaviour management systems • To ensure key attitudes for learning are actively discussed and planned for as part of regular classroom practice. • Ensure there is a robust programme to support parents in actively engaging in their child’s education. • To deliver and embed a rigorous programme to develop relationships education, British Values and SMSC for all pupils across the school.

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GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

These were achieved by:

• Clear curriculum intent and implementation mapped across school with end points demonstrating progression and mastery in each curriculum subject. • A clear vision for reading created and plan to ensure all pupils consistently access challenging texts that match both their mechanical reading ability and understanding. Classroom reading areas created to inspire pupils love of books. • Feedback Policy, Pupil Presentation Protocols and Classroom Learning Environment expectations established and embedded across the first part of the year. • Positive Behaviour Management systems and procedures implemented and embedded that celebrate success through newly established key attitudes for learning. • Subject leadership training for staff by a variety of high quality external providers leading to recognition during the Section 8 Ofsted inspection in February 2020 ‘Teachers use their strong subject knowledge to help pupils learn well.’ • Pupil personal development overview created to ensure progression of skills, knowledge and concepts through a range of high quality visits, projects and visitors designed to support pupils wider understanding of the world and their place in it eg Fort Alice Respectful Relationships. • Closer links created with Eagley Infant School with informal joint Governor Meeting at Eagley Junior School and joint staff meeting at Eagley Infant School.

Public benefit The Governors are aware of the Charity Commission Guidance on providing public benefit and have had due regard to this in exercising their duties during the period. • The school provides access to premises and grounds for Yoga and Ju-jitsu Classes. • The school provides BCMCS Youth Theatre with access to premises. • The school has an agreement with Eagley Infant school to allow staff and pupils access to the school grounds in furtherance of their Forest Schools activities. • The school took part in a number of fund-raising activities to raise money for Children In Need and The Rotary Club Shoebox Appeal.

Strategic report Achievements and performance • Clear curriculum intent and implementation mapped across school with end points demonstrating progression and mastery in each curriculum subject.

• A clear vision for reading created and plan to ensure all pupils consistently access challenging texts that match both their mechanical reading ability and understanding. Classroom reading areas created to inspire pupils love of books.

• Feedback Policy, Pupil Presentation Protocols and Classroom Learning Environment expectations established and embedded across the first part of the year.

• Positive Behaviour Management systems and procedures implemented and embedded that celebrate success through newly established key attitudes for learning.

• Subject leadership training for staff by a variety of high quality external providers leading to recognition during the Section 8 Ofsted inspection in February 2020 ‘Teachers use their strong subject knowledge to help pupils learn well.’

• Pupil personal development overview created to ensure progression of skills, knowledge and concepts through a range of high quality visits, projects and visitors designed to support pupils wider understanding of the world and their place in it eg Fort Alice Respectful Relationships Course.

• Closer links created with Eagley Infant School with informal joint Governor Meeting at Eagley Junior School and joint staff meeting at Eagley Infant School.

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GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Key performance indicators • Section 8 Ofsted Inspection 4th - 5th February 2020 - ‘Eagley Junior School remains a Good School’ • Attendance data and reports to Governors for 2019-20. • Outcomes from Local Authority Learning Review conducted 9th December 2019 • Staff, Parent and Pupil survey results and feedback from parents/carers through School Blogging website/social media feeds

The data below is from the latest year available. For maintained schools this is 2018 - 2019, academies from 2018 / 2019.

1) Total income per pupil - national and local comparison

National comparison 2018-19

Local comparison 2018-19

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GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

2) Total expenditure per pupil - national and local comparison

National comparison 2018-19

Local comparison 2018-19

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GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

3) Teacher – Contact ratio - national and local comparison

National comparison 2018-19

Local comparison 2018-19

Going concern After making appropriate enquiries, the Governing Body has 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.

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GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Financial review There were no events which had a significant financial effect during the period.

The School’s total incoming resources during the period were £1,067,956 (2019: £1,191,510).

The majority of the School’s income derives from central government funding via the Education & Skills Funding Agency, in the form of current grants. Total funding received for the School’s educational operations in the period was £1,048,518 (2019: £1,005,272) and further details are provided in Note 4 to the accounts.

Total outgoing resources for the period were £1,243,163 (2019: £1,163,041), the majority of which related to the direct provision of educational operations (£1,242,091, 2019 - £1,159,857). The excess of expenditure over income was £177,338 (2019: £28,469 excess of income over expenditure).

At the period end the School’s total reserves were £1,818,303 (2019: £1,967,510), including unrestricted funds of £181,336 (2019: £171,773) and restricted funds of £1,636,967 (2019: £1,795,737). Restricted funds include fixed assets of £2,098,626 (2019: £2,222,806), less the LGPS pension scheme deficit of £568,000 (2019: £525,000). The remaining balances on restricted funds relate to funding received in the period which is due to be spent in 2020/21 in accordance with the terms of funding. Further detail is provided in Note 17.

At 31 August 2020 all assets shown in the accounts were used exclusively for providing education and associated support services to students of the School.

On conversion in 2012 the School inherited a deficit of £183,000 in respect of the Local Government Pension Scheme, which many of the non-teaching staff belong to. This deficit had increased to £568,000 by 31 August 2020, mainly due to the changes in actuarial assumptions regarding future returns on investments and the present value of future liabilities. The level of any deficit payments will be reviewed following the next actuarial valuation in 2022 and any changes in the required level of payment will be included in the School’s annual budget from the date they take effect. The School does not have an obligation to settle this future liability immediately and there are no indications that it will crystallise in the foreseeable future.

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.

Factors likely to affect future financial performance: • The proposed ongoing uplifts to the teachers pension contributions and salary scales are a factor likely to impact on future financial performance. • As a ‘stand-alone’ academy, the new ESFA requirements regarding external nature of the reporting officer role is also a factor likely to affect future financial performance due to the increased costs associated with sourcing appropriately qualified external support to provide this oversight role.

Reserves policy Reserves are required to- • Ensure sustainability of the school in the event of reductions in funding, reductions in pupil numbers or unexpected increases in expenditure. • Fund capital projects and the replacement of equipment • Enable the Trust to respond to opportunities and implement the longer term strategic plan.

Planned developments for 2020-21 include completion of an upgrading of lighting across school premises, as well as upgrading the floor in the school kitchen, and upgrading the ladies toilets as these were not completed due to the wider school shutdown

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GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Restricted GAG reserves Under its funding agreement with the Secretary of State for Education the school is permitted to hold restricted General Annual Grant (GAG) reserves at the year end of 12% of its GAG; 2% to cover revenue expenditure, and a further 10% for future capital expenditure, including the maintenance and refurbishment of the buildings and facilities.

The Governors have considered the level of GAG reserves which they believe will provide sufficient working capital to cover delays between the spending and receipt of grants and unexpected or planned future revenue and capital costs.

The Governors believe that, under normal circumstances, the appropriate level of GAG reserve should be below 15% of GAG income, and aim to keep the reserve within these parameters (between 12% - 15%).

At 31 August 2020 the school held GAG reserves of £101,460, which represents 11.8% of the GAG income for the year. This includes £97,452 brought forward from the previous year. The £4,008 in year surplus represents 0.46% of the GAG income for 2019/20 year. This will be retained as a contribution towards the two-month operating costs in the event of an emergency.

Unrestricted reserves In addition to the GAG reserve, which can only be utilised for the restricted purposes set out in the Funding Agreement, the school holds unrestricted free reserves, which provide additional working capital and are not committed or designated. Reserves levels have been agreed to enable Eagley Junior School to maintain a level which ensures that the core activity could continue during a period of unforeseen difficulty.

At 31 August 2020 the level of unrestricted reserves held was £181,33 6 , this includes £171,773 brought forward from the previous year. The £9,56 3 in year surplus represents 13.9 % of income for 2019/20 year.

It is the Governors’ policy to aim to hold £182,677 (approximately 2 months’ expenditure) in reserves. Of this, £ 81,217 will come from unrestricted reserves, to provide an additional cushion over and above the £ 101,460 restricted GAG reserve.

The excess £ 100,119 unrestricted reserves will be invested in additional furnishings, equipment, ICT and potential Covid -19 related expenses.

Reserves levels have been agreed to enable Eagley Junior School to maintain a level which ensures that the core activity could continue during a period of unforeseen difficulty. The calculation of the required level of reserves is an integral part of the organisation’s planning, budget and forecast cycle.

Investment policy All investments are agreed by the Governing Body, which has regard to the Charity Commission guidance in relation to charity investment policy. The school does not currently hold any investments other than cash, which is held for its normal operations. The Governing Body has adopted a low risk strategy to its cash holdings. Surplus cash is held in an instant access deposit account to ensure that there is always access to sufficient cash to meet short and medium term requirements, whilst earning a competitive rate of interest on any surplus balances.

Principal risks and uncertainties The Academy has produced an in-depth Risk Register. Risks are identified using a scoring system against impact and likelihood. This is reviewed at least annually.

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GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Financial and risk management objectives and policies The Academy protects its assets and reputation by embedding rigorous systems of internal control. This includes termly RO reports by external auditors in addition to an annual audit. The Finance and Resources Committee reviews may expose financial risk and identify actions to be taken to reduce potential impact to the academy. The Finance and Resources Committee regularly reviews the academy’s cash flow in order to ensure sufficient funds are available to meet the academy’s financial commitments.

Risk management The Governors have assessed the major risks to which the Academy is exposed, in particular those relating to teaching, health and safety, school trips, child protection, and finances. These risks are reviewed at least annually by the Governing Body and its subcommittees. A number of operational systems are in place in order to minimise specific risks. These include overarching policies for Safeguarding and Child Protection, Data Protection and GDPR, Equalities, Use of school premises by outside organisations; a comprehensive Emergency Management and Business Continuity plan; and EVOLVE school trip management programme.

The internal financial systems are based on the Academies Financial Handbook and approved by the Governing Body. The systems are based on a framework of segregation of duties, and schemes of delegation which include authorisation and approval. Financial management information is provided to the Headteacher and Chair of the Governing Body on a monthly basis.

The responsible officer role has been performed during the period by KM Business Solutions Limited and 2 reports have been prepared for the Governing Body. The Summer RO report has not been completed as yet due to the wider school closure but this is scheduled for the Autumn Term.

Fundraising The school raises money on behalf of recognised charities as part of its commitment to developing in pupils the concepts of citizenship and awareness of the needs of others. The school also raises money for school projects and to cover the cost of some school activities.

The school does not employ commercial or professional fundraisers in any capacity.

All fundraising activities are carried out legally. Performing Rights licences are taken out for school productions. Temporary Events (Alcohol) Licences and Small Organisation Lotteries licences are sought from Bolton Council where appropriate for Parents Association events. Funds raised for the school or for other charities are banked promptly and are monitored via the school’s normal accounting processes.

The school’s Parents Association organises fundraising events for the school. The work of the Association is overseen by the Headteacher and a responsible teacher, who attend meetings.

Complaints about the school’s fundraising activities are managed through the school’s general complaints procedure.

All fundraising activities in school, whether on its own behalf or that of other charities, are voluntary. Care is taken to avoid children or parents feeling required to participate in activities, or cause embarrassment to those who choose not to take part. Where fundraising takes the form of sponsored activities, advice is provided to parents and children on how to do this safely.

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GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Plans for future periods The Governing Body has identified the following areas for development in the SDP (Recovery) Plan 2020-21:

Shortly after its successful Section 8 inspection by Ofsted in February, on the 20th of March 2020 Eagley Junior School shut for all pupils due to the emerging Coronavirus pandemic. This was apart from those pupils from the families of key workers and vulnerable pupils who school continued to offer provision to. From the 23rd of March 2020, school instigated a programme of remote learning opportunities for the vast majority of pupils who were not able to attend school. Statutory national assessments due to be administered in May 2020 were abandoned. On the 2nd of June 2020, following government guidance, school reopened for Y6 pupils in small groups whilst remote learning continued for all other year groups. Following further government guidance in the second half of the Summer Term, school has planned to reopen for all pupils in class groups in September 2020. School attendance has been again made mandatory by the government from September 2020.

In following this safety guidance, school has not been able to ensure that provision for pupils is exactly as it was before March 2020. The threat of further school closure in the forthcoming academic year due to local or national outbreaks or rises in infection rates is very real. This school development plan aims to reflect these twin realities whilst at the same time ensuring that we continue to develop our provision so that all pupils receive the best possible education we can offer at this time.

In short, our priorities for the academic year 2020-21 are to

• support pupils’ emotional development by offering choice; • develop their fluency and self-efficacy in ‘basic skills’ and • ensure we utilise technological platforms fully to enhance learning.

In working on these priorities, we will continue to further develop some priorities from 2019-20 where possible (eg Reading). As we are, at the time of writing, unsure as to the exact impact of the extended school closure on pupils’ learning, the School Development Plan will be used as a ‘recovery plan’. Our school aims will remain unchanged during this period. We will not categorise our priorities for this interim ‘recovery plan’ using the Ofsted evaluation criteria in order to give school maximum flexibility in ensuring we meet pupils’ needs in the event of future partial or full school closure. This includes developing our remote education offer in line with the government’s guidance on contingency plans for outbreaks. We will revert to the Ofsted evaluation criteria at a time in the future where this will once again be practicable and there are no longer restrictions in place.

Funds held as custodian trustee on behalf of others The Academy holds no funds as Custodian Trustee on behalf of others.

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GOVERNORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Auditor In so far as the governors are aware: - there is no relevant audit information of which the charitable company's auditor is unaware; and - the governors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

A resolution proposing that MHA Moore and Smalley be reappointed as auditor of the charitable company will be put to the members.

The governors' report, incorporating a strategic report, was approved by order of the board of governors, as the company directors, on 30 November 2020 and signed on its behalf by:

Mr M Hayes Chair

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GOVERNANCE STATEMENT FOR THE YEAR ENDED 31 AUGUST 2020

Scope of responsibility As governors we acknowledge we have overall responsibility for ensuring that Eagley Junior 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, 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 Eagley Junior School and the Secretary of State for Education. They are also responsible for reporting to the Governing Body any material weaknesses or breakdowns in internal control.

Governance The information on governance included here supplements that described in the Governors’ Report and in the Statement of Governors’ Responsibilities. The governing body has formally met 3 times during the period. Attendance during the period at meetings of the governing body was as follows:

Governors Meetings attended Out of possible

Mr M Hayes (Chair) 3 3 Mr M Taylor (Headteacher and Accounting Officer) 3 3 Mrs L Hounslea 2 3 Mr D Warbrick 3 3 Ms M L B Hickman 3 3 Mrs K Hall 3 3 Mrs J Roberts (Resigned 4 November 2019) 0 0 Mr R T Tretheway (Resigned 4 December 2019) 0 0 Mrs N Ashton (Appointed 1 September 2019) 2 3 Mr M Flannery (Appointed 1 September 2019) 2 3 Mr P Birchall (Appointed 1 October 2019) 1 3 Miss L Mclauglin (Appointed 1 October 2019 and resigned 15 February 2020) 1 1 Mrs J Barrow (Appointed 5 November 2019) 3 3 Mrs R Murphy (Appointed 1 September 2020) 0 0 Mrs P O'Donnell (Appointed 1 September 2020) 0 0

Governance review Sub-committee meetings for the Summer Term were cancelled as per Governance Services advice during the school closure period but school’s first virtual full Governing Body meeting was held on the 30th June 2020. The Headteacher and the Chair of Governors meet virtually every week and regularly communicated regarding all decision making and additional aspects of pupil and staff safety, vulnerable pupils, in-school provision and children’s remote learning via their class blogs. Governors carried out monitoring of the children’s class blogs during the wider school closure.

Financial oversight of monthly management accounts was not affected by the school closure and all Governors received this information. During the Autumn and Spring Terms, Class Governor roles were carried out and Governors were fully involved in the monitoring of attainment, progress, attendance, inclusion issues, learning environments etc. Many governors also attended the re-visioning twilight session with all staff. Ofsted positively commented that although many governors were new, they had attended training courses to improve their understanding of their responsibilities and were aware of the schools strengths and priorities for improvement.

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GOVERNANCE STATEMENT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Governors base their judgements and decisions on information presented to them by the Headteacher and Clerk of Governors. Information includes KS1 and KS2 assessment data, comparative attainment and progress data provided by the Bolton data pack and ASP, responses to Parental and Pupil questionnaires, financial reports from the RO and information from external reviews (Teaching & Learning review, Peer Reviews, Ofsted, SIP). Governors meet regularly with key staff and attend termly subcommittee meetings in order to discuss the work of the school and assure themselves that the work of the school is proceeding appropriately.

The Finance and Resources committee is a subcommittee of the main governing body. Its purpose is to advise the main governing body regarding strategic financial planning; monitor agreed spending, including matters of probity; maintain a risk register and emergency plan; and monitor health & safety.

Attendance at meetings in the year was as follows:

Governors Meetings attended Out of possible

Mr M Hayes (Chair) 1 2 Mr M Taylor (Headteacher and Accounting Officer) 2 2 Mrs L Hounslea 2 2 Ms M L B Hickman 2 2

Review of value for money As accounting officer the headteacher has responsibility for ensuring that the academy trust delivers good value in the use of public resources. The accounting officer understands that value for money refers to the educational and wider societal outcomes achieved in return for the taxpayer resources received.

The accounting officer considers how the academy trust’s use of its resources has provided good value for money during each academic year, and reports to the board of governors where value for money can be improved, including the use of benchmarking data where available. The accounting officer for the academy trust has delivered improved value for money during the year by:

• Continuing to provide education for vulnerable and keyworker pupils during the wider school closure without the need for expenditure on additional staffing. • Implemented necessary safety precautions in line with UK Government guidance without the need for extensive wider expenditure on bespoke signage or other control equipment/resources. • Implemented a phased programme of works to upgrade the lighting throughout school to a more energy efficient and cost effective LED system in order to reduce expenditure on energy bills. • Ongoing best practice to ensure the best prices during procurement processes eg KM Accountancy RO role • Paying non-teaching staff at TA4 rate in school to provide cover for teaching staff where possible. • Purchase of new photocopier rather than leasing. Purchase price £2,461, lease for 3 years £2851. • Continuing to utilise online payments by parents directly into school bank account to reduce subscription fees. • Generating additional income through parents purchasing school uniform in house in partnership with local textile business. • Working with Teach First SCITT at Turton High School to train and mentor two trainee teachers resulting in additional income for school • SBM time at Eagley Infants which continues to result in extra income for school. • Teaching structure – not reappointing two part-time members of staff who tendered their resignations in July 2020 resulting in a saving on staffing costs for 2020-21 .

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GOVERNANCE STATEMENT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

The purpose of the system of internal control The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk of failure to achieve policies, aims and objectives; it can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an ongoing process designed to identify and prioritise the risks to the achievement of Academy’s 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 the Academy for the period 1 September 2019 to 31 August 2020 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 period 1 September 2019 to 31 August 2020 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 academy trust’s system of internal financial control is based on a framework of regular management information and administrative procedures including the segregation of duties and a system of delegation and accountability. In particular, it includes:

• comprehensive budgeting and monitoring systems with an annual budget and periodic financial reports which are reviewed and agreed by the governing body; • reviews by the Finance and Resources committee of reports which indicate financial performance against the forecasts and of major purchase plans, capital works and expenditure programmes; • setting targets to measure financial and other performance; • clearly defined purchasing (asset purchase or capital investment) guidelines; • delegation of authority and segregation of duties; • identification and management of risks.

The governing body has considered the need for a specific internal audit function and have appointed KM Accountancy, to perform additional Responsible Officer (RO) checks as internal auditors.

The RO's role includes giving advice on financial matters and performing a range of checks on the academy trust's financial systems. In particular the checks carried out in the current period included:

• testing of income systems • testing of control account/bank reconciliations • testing of contract monitoring • testing of duplicates

During 2019-20, Governors requested a particular focus on testing of income systems, control of account and bank reconciliations, contract monitoring and duplicates.

On a termly basis, the RO reports are presented to the board of governors through the Finance and Resources committee. The Autumn and Spring term report has been presented to governors. The Summer term internal scrutiny visit has not been completed as yet due to the wider school closure but this is scheduled for the Autumn term.

No major issues have been identified. Recommendations for the improvements to systems and procedures have been implemented/ are in the process of being implemented.

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GOVERNANCE STATEMENT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Review of effectiveness As accounting officer the headteacher has responsibility for reviewing the effectiveness of the system of internal control. During the year in question the review has been informed by:

• the work of the responsible officer; • the work of the external auditor; • the financial management and governance self-assessment process; • the work of the executive managers within the academy trust who have responsibility for the development and maintenance of the internal control framework.

The accounting officer has been advised of the implications of the result of their review of the system of internal control by the Finance and Resources committee and a plan to address weaknesses and ensure continuous improvement of the system is in place.

Approved by order of the board of governors on 30 November 2020 and signed on its behalf by:

Mr M Hayes Mr M Taylor Chair Headteacher and Accounting Officer

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STATEMENT OF REGULARITY, PROPRIETY AND COMPLIANCE FOR THE YEAR ENDED 31 AUGUST 2020

As accounting officer of Eagley Junior School, I have considered my responsibility to notify the academy trust board of governors and the Education and Skills Funding Agency (ESFA) of material irregularity, impropriety and non-compliance with terms and conditions of all funding received by the academy trust, under the funding agreement in place between the academy trust and the Secretary of State for Education. As part of my consideration I have had due regard to the requirements of the Academies Financial Handbook 2019.

I confirm that I and the academy trust's board of governors are able to identify any material irregular or improper use of funds by the academy trust, or material non-compliance with the terms and conditions of funding under the academy trust's funding agreement and the Academies Financial Handbook 2019.

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

Mr M Taylor Accounting Officer

30 November 2020

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STATEMENT OF GOVERNORS' RESPONSIBILITIES FOR THE YEAR ENDED 31 AUGUST 2020

The governors (who act as trustees for Eagley Junior School and are also the directors of Eagley Junior School for the purposes of company law) are responsible for preparing the governors' report and the accounts in accordance with the Academies Accounts Direction 2019 to 2020 published by the Education and Skills Funding Agency, Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

Company law requires the governors to prepare accounts for each financial year. Under company law, the governors must not approve the accounts 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 accounts, the governors are required to:

• select suitable accounting policies and then apply them consistently; • observe the methods and principles in the Charities SORP 2019 and the Academies Accounts Direction 2019 to 2020; • make judgements 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 accounts; and • prepare the accounts on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

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

The governors are responsible for ensuring that in its conduct and operation the charitable company applies financial and other controls, which conform with the requirements both of propriety and of good financial management. They are also responsible for ensuring that grants received from ESFA/DfE have been applied for the purposes intended.

The governors are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of accounts may differ from legislation in other jurisdictions.

Approved by order of the members of the board of governors on 30 November 2020 and signed on its behalf by:

Mr M Hayes Chair

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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EAGLEY JUNIOR SCHOOL FOR THE YEAR ENDED 31 AUGUST 2020

Opinion We have audited the accounts of Eagley Junior School for the year ended 31 August 2020 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the accounts, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ' The Financial Reporting Standard applicable in the UK and Republic of Ireland ' (United Kingdom Generally Accepted Accounting Practice), the Charities SORP 201 9 and the Academies Accounts Direction 2019 to 2020 issued by the Education and Skills Funding Agency.

In our opinion the accounts: - give a true and fair view of the state of the charitable company's affairs as at 31 August 2020 and of its incoming resources and application of resources, including its income and expenditure, f or the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006 ; and - have been prepared in accordance with the Charities SORP 2019 and the Academies Accounts Direction 2019 to 2020.

Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 'Auditor's responsibilities for the audit of the accounts' section of our report. We are independent of the academy trust in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: - the governors' use of the going concern basis of accounting in the preparation of the accounts is not appropriate; or - the governors have not disclosed in the accounts any identified material uncertainties that may cast significant doubt about the academy trust’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the accounts are authorised for issue.

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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EAGLEY JUNIOR SCHOOL (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Other information The governors are responsible for the other information, which comprises the information included in the annual report other than the accounts and our auditor’s report thereon. Other information includes Reference and Administrative details, Trustees Report, incorporating the Strategic Report and the Directors Report, the Governance Statement, the Statement on Regularity, Propriety and Compliance and the Trustees Responsibilities Statement. Our opinion on the accounts does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the accounts or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: - the information given in the governors' r eport including the incorporated strategic report for the financial year for which the accounts are prepared is consistent with the accounts; and - the governors' r eport including the incorporated strategic report ha s been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception In the light of the knowledge and understanding of the academy trust and its environment obtained in the course of the audit, we have not identified material misstatements in the governors' r eport , including the incorporated strategic report .

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the accounts are not in agreement with the accounting records and returns; or - certain disclosures of governors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.

Responsibilities of governors As explained more fully in the s tatement of governors' r esponsibilities, the governors are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such internal control as the governors determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error.

In preparing the accounts, the governors are responsible for assessing the academy trust’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the governors either intend to liquidate the charitable company, or have no realistic alternative but to do so.

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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EAGLEY JUNIOR SCHOOL (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Auditor's responsibilities for the audit of the accounts Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these accounts.

A further description of our responsibilities for the audit of the accounts is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report This report is made solely to the charitable company'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 charitable company'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 charitable company and the charitable company 's members as a body, for our audit work, for this report, or for the opinions we have formed.

Christine Wilson (Senior Statutory Auditor) for and on behalf of MHA Moore and Smalley Chartered Accountants Statutory Auditor

Richard House 9 Winckley Square Preston PR1 3HP 13/12/2020 ......

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INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO EAGLEY JUNIOR SCHOOL AND THE EDUCATION AND SKILLS FUNDING AGENCY FOR THE YEAR ENDED 31 AUGUST 2020

In accordance with the terms of our engagement letter dated 15 August 2016 and further to the requirements of the Education and Skills Funding Agency (ESFA) as included in the Academies Accounts Direction 2019 to 2020, we have carried out an engagement to obtain limited assurance about whether the expenditure disbursed and income received by Eagley Junior School during the period 1 September 2019 to 31 August 2020 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 Eagley Junior School and ESFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to the Eagley Junior School and ESFA 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 Eagley Junior School and ESFA, for our work, for this report, or for the conclusion we have formed.

Respective responsibilities of Eagley Junior School's accounting officer and the reporting accountant The accounting officer is responsible, under the requirements of Eagley Junior School’s funding agreement with the Secretary of State for Education dated 29 May 2012 and the Academies Financial Handbook, extant from 1 September 2019, 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 2019 to 2020. 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 2019 to 31 August 2020 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 2019 to 2020 issued by ESFA. 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 work undertaken to draw to our conclusion includes consideration of governance issues and an evaluation of the control environment of the School together with enquiry, analytical review and substantive testing of transactions.

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INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO EAGLEY JUNIOR SCHOOL AND THE EDUCATION AND SKILLS FUNDING AGENCY (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Conclusion In the course of our work, nothing has come to our attention which suggests that in all material respects the expenditure disbursed and income received during the period 1 September 2019 to 31 August 2020 has not been applied to purposes intended by Parliament and the financial transactions do not conform to the authorities which govern them.

Reporting Accountant MHA Moore and Smalley

Richard House 9 Winckley Square Preston PR1 3HP 13/12/2020 ......

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STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2020

Unrestricted Restricted Restricted Total Total funds general fixed asset 2020 2019 funds funds Notes £ £ £ £ £ Income and endowments from: Donations and capital grants 3 2,746 - (20,284) (17,538) 161,700 Charitable activities: - Funding for educational operations 4 29,207 1,019,311 - 1,048,518 1,005,272 Other trading activities 5 36,815 - - 36,815 24,354 Investments 6 161 - - 161 184

Total income and endowments 68,929 1,019,311 (20,284) 1,067,956 1,191,510

Expenditure on: Raising funds 7 593 479 - 1,072 3,184 Charitable activities: - Educational operations 8 58,773 1,133,992 49,326 1,242,091 1,159,857

Total expenditure 7 59,366 1,134,471 49,326 1,243,163 1,163,041

Net income/(expenditure) 9,563 (115,160) (69,610) (175,207) 28,469

Transfers between funds - 54,570 (54,570) - -

Other recognised gains and losses Actuarial gains/(losses) on defined benefit pension schemes 19 - 26,000 - 26,000 (169,000)

Net movement in funds 9,563 (34,590) (124,180) (149,207) (140,531)

Reconciliation of funds Total funds brought forward 171,773 (427,069) 2,222,806 1,967,510 2,108,041

Total funds carried forward 17 181,336 (461,659) 2,098,626 1,818,303 1,967,510

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BALANCE SHEET AS AT 31 AUGUST 2020

2020 2019 Notes £ £ £ £ Fixed assets Tangible assets 12 2,119,429 2,136,062

Current assets Debtors 13 21,825 146,099 Cash at bank and in hand 359,268 421,235

381,093 567,334 Current liabilities Creditors: amounts falling due within one year 14 (93,687) (209,514)

Net current assets 287,406 357,820

Total assets less current liabilities 2,406,835 2,493,882

Creditors: amounts falling due after more than one year 15 (20,532) (1,372)

Net assets before defined benefit pension scheme liability 2,386,303 2,492,510

Defined benefit pension scheme liability 19 (568,000) (525,000)

Total net assets 1,818,303 1,967,510

Funds of the academy trust: Restricted funds 17 - Fixed asset funds 2,098,626 2,222,806 - Restricted income funds 106,341 97,931 - Pension reserve (568,000) (525,000)

Total restricted funds 1,636,967 1,795,737

Unrestricted income funds 17 181,336 171,773

Total funds 1,818,303 1,967,510

The accounts on pages 25 to 47 were approved by the governors and authorised for issue on 30 November 2020 and are signed on their behalf by:

Mr M Hayes Chair

Company Number 07986218

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STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2020

2020 2019 Notes £ £ £ £

Cash flows from operating activities Net cash (used in)/provided by operating activities 20 (123,069) 21,073

Cash flows from investing activities Dividends, interest and rents from investments 161 184 Capital grants from DfE Group 47,398 62,354 Capital funding received from sponsors and others 25,776 - Purchase of tangible fixed assets (32,693) (9,400)

Net cash provided by investing activities 40,642 53,138

Cash flows from financing activities New other loan 20,803 - Repayment of other loan (343) (343)

Net cash provided by/(used in) financing activities 20,460 (343)

Net (decrease)/increase in cash and cash equivalents in the reporting period (61,967) 73,868

Cash and cash equivalents at beginning of the year 421,235 347,367

Cash and cash equivalents at end of the year 359,268 421,235

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

1 Accounting policies

Eagley Junior School is a charitable company. The address of its principal place of business is given on page 1 and t he nature of its operations are set out in the governors' report.

A summary of the principal accounting policies adopted (which have been applied consistently, except where noted), judgements and key sources of estimation uncertainty, is set out below.

1.1 Basis of preparation The accounts of the academy trust, which is a public benefit entity under FRS 102, have been prepared under the historical cost convention in accordance with the Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102), the 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 (FRS 102) (Charities SORP (FRS 102)), the Academies Accounts Direction 2019 to 2020 issued by ESFA, the Charities Act 2011 and the Companies Act 2006.

1.2 Going concern The governors assess whether the use of going concern is appropriate, ie whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charitable company to continue as a going concern. The governors make this assessment in respect of a period of at least one year from the date of authorisation for issue of the accounts. The governors have considered the impact of the Government response to Covid-19 on the activity of the academy trust in terms of both increased costs of compliance with guidelines and catch up in learning and also reduced income. The governors have concluded that the academy trust has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the academy trust’s ability to continue as a going concern. Thus they continue to adopt the going concern basis of accounting in preparing the accounts.

1.3 Income All incoming resources are recognised when the academy trust has entitlement to the funds, the receipt is probable and the amount can be measured reliably.

Grants 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 meeting any performance-related conditions there is not unconditional entitlement to the income and its recognition is deferred and included in creditors as deferred income until the performance-related conditions are met. Where entitlement occurs before income is received, the income is accrued.

General Annual Grant is recognised in full in the statement of financial activities in the period for which it is receivable, and any abatement in respect of the period is deducted from income and recognised as a liability.

Capital grants are recognised in full when there is an unconditional entitlement to the grant. Unspent amounts of capital grants are reflected in the balance sheet in the restricted fixed asset fund. Capital grants are recognised when there is entitlement and are not deferred over the life of the asset on which they are expended.

Sponsorship income Sponsorship income provided to the academy trust which amounts to a donation is recognised in the statement of financial activities in the period in which it is receivable (where there are no performance- related conditions), where the receipt is probable and it can be measured reliably.

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

1 Accounting policies (Continued)

Donations Donations are recognised on a receivable basis (where there are no performance-related conditions) where the receipt is probable and the amount can be reliably measured.

Other income Other income, including the hire of facilities, is recognised in the period it is receivable and to the extent the academy trust has provided the goods or services.

Donated goods, facilities and services Goods donated for resale are included at fair value, being the expected proceeds from sale less the expected costs of sale. If it is practical to assess the fair value at receipt, it is recognised in stock and ‘Income from other trading activities’. Upon sale, the value of the stock is charged against ‘Income from other trading activities’ and the proceeds are recognised as ‘Income from other trading activities’. Where it is impractical to fair value the items due to the volume of low value items they are not recognised in the accounts until they are sold. This income is recognised within ‘Income from other trading activities’.

Donated fixed assets Donated fixed assets are measured at fair value unless it is impractical to measure this reliably, in which case the cost of the item to the donor is used. The gain is recognised as income from donations and a corresponding amount is included in the appropriate fixed asset category and depreciated over the useful economic life in accordance with the academy trust‘s accounting policies.

1.4 Expenditure Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

All resources expended are inclusive of irrecoverable VAT.

Expenditure on raising funds This includes all expenditure incurred by the academy trust to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Charitable activities These are costs incurred on the academy trust's educational operations, including support costs and costs relating to the governance of the academy trust apportioned to charitable activities.

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

1 Accounting policies (Continued)

1.5 Tangible fixed assets and depreciation 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 tangible fixed assets have been acquired with the aid of specific grants, either from the government or from the private sector, they are included in the balance sheet at cost and depreciated over their expected useful economic life. The related grants are credited to a restricted fixed asset fund in the statement of financial activities and carried forward in the balance sheet. Depreciation on such assets is charged to the restricted fixed asset fund in the statement of financial activities so as to reduce the fund over the useful economic life of the related asset on a basis consistent with the academy trust's depreciation policy. Where tangible fixed assets have been acquired with unrestricted funds, depreciation on such assets is charged to the unrestricted fund.

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

Leasehold land and buildings 0.8% - 2% ICT equipment 33.3% Fixtures, fittings & equipment 20%

Assets in the course of construction are included at cost. Depreciation on these assets is not charged until they are brought into use.

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

1.6 Liabilities Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the academy trust anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods of services it must provide.

1.7 Leased assets Rentals payable under operating leases are charged against income on a straight-line basis over the period of the lease.

1.8 Financial instruments The academy trust only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the academy trust and their measurement basis are as follows.

Financial assets Trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments.

Cash at bank is classified as a basic financial instrument and is measured at face value.

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

1 Accounting policies (Continued)

Financial liabilities Trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition.

Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument.

1.9 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.

1.10 Pensions benefits Retirement benefits to employees of the academy trust are provided by the Teachers' Pension Scheme ('TPS') and the Local Government Pension Scheme ('LGPS'). These are defined benefit schemes and the assets are held separately from those of the academy trust.

The TPS is an unfunded scheme and contributions are calculated 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 based on quadrennial valuations using a prospective unit credit method. The TPS is an unfunded multi-employer scheme with no underlying assets to assign between employers. Consequently, the TPS is treated as a defined contribution scheme for accounting purposes and the contributions are recognised in the period to which they relate.

The LGPS is a funded multi-employer 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 credit 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 net income or expenditure are the current service costs and the costs of scheme introductions, benefit changes, settlements and curtailments. They are included as part of staff costs as incurred. Net interest on the net defined benefit liability/asset is also recognised in the statement of financial activities and comprises the interest cost on the defined benefit obligation and interest income on the scheme assets, calculated by multiplying the fair value of the scheme assets at the beginning of the period by the rate used to discount the benefit obligations. The difference between the interest income on the scheme assets and the actual return on the scheme assets is recognised in other recognised gains and losses. Actuarial gains and losses are recognised immediately in other recognised gains and losses.

1.11 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 have been utilised in acquiring fixed assets. The initial funding may have arisen from unrestricted funds or other restricted funds, a transfer from the appropriate fund is made to the fixed asset fund to identify the capitalisation of an asset and future depreciation on these assets will be charged to the fixed asset fund.

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

1 Accounting policies (Continued)

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

2 Critical accounting estimates and areas of judgement

Accounting e stimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions The academy trust makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Useful economic life of tangible fixed assets The useful economic life of tangible fixed assets is judged at the point of purchase.

As standard, a useful economic life of 125 years is applied to long leasehold land, 50 years for school buildings, 3 years for computer equipment and 5 years for furniture and fixtures.

Impairment of fixed assets At each balance sheet date, management undertake an assessment of the carrying value of tangible fixed assets to determine whether there is any indication that the value has been impaired. Where necessary, an impairment is recorded as an impairment loss.

Valuation of the Local Government Pension Scheme defined benefit liability The present value of the Local Government Pension Scheme defined benefit liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost or income for pensions include the discount rate. Any changes in these assumptions, which are disclosed in note 19, will impact the carrying amount of the pension liability. Furthermore a roll forward approach which projects results from the latest full actuarial valuation performed at 31 March 2013 has been used by the actuary in valuing the pensions liability at 31 August 2020. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of the pension liability.

Critical areas of judgement Classification and valuation of long leasehold land and buildings The academy’s long leasehold land and buildings are held under a 125 year lease and are wholly used in the course of the academy’s business and are held within the academy. No value was paid for the land and buildings, which have been incorporated into the accounts as a donated asset, based on a depreciated replacement cost valuation carried out as at 31 March 2013 on behalf of the Department for Education by DTZ. This valuation has been adjusted to take account of depreciation in the period since conversion, to arrive at an estimate for the value of land and buildings acquired on conversion. Subsequent additions to land and buildings are initially valued at cost.

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

3 Donations and capital grants Unrestricted Restricted Total Total funds funds 2020 2019 £ £ £ £

Capital grants - (20,284) (20,284) 130,036 Other donations 2,746 - 2,746 31,664

2,746 (20,284) (17,538) 161,700

The income from donations and capital grants was £(17,538) (2019: £161,700) of which £2,746 was unrestricted (2019: £5,126), £- was restricted (2019: £762) and £(20,284) was restricted fixed assets (2019: £155,812).

The expenditure of £20,284 is to reflect a reduction in capital grant funding of £26,961 which was received in the previous year. Excluding this, income from capital grants was £6,677 (2019: £130,036), all of which was restricted fixed assets.

4 Funding for the academy trust's educational operations

Unrestricted Restricted Total Total funds funds 2020 2019 £ £ £ £ DfE / ESFA grants General annual grant (GAG) - 869,077 869,077 859,185 Other DfE / ESFA grants - 101,996 101,996 69,085

- 971,073 971,073 928,270

Other government grants Local authority grants - 29,113 29,113 14,722

Other funds Other incoming resources 29,207 19,125 48,332 62,280

Total funding 29,207 1,019,311 1,048,518 1,005,272

The income from funding for educational operations was £1,048,518 (2019: £1,005,272) of which £29,207 was unrestricted (2019: £41,419) and £1,019,311 was restricted (2019: £963,853).

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

5 Other trading activities Unrestricted Restricted Total Total funds funds 2020 2019 £ £ £ £

Hire of facilities 1,370 - 1,370 1,465 Other income 35,445 - 35,445 22,889

36,815 - 36,815 24,354

The income from other trading activities was £36,815 (2019: £24,354) of which £36,815 was unrestricted (2019: £24,354).

6 Investment income Unrestricted Restricted Total Total funds funds 2020 2019 £ £ £ £

Short term deposits 161 - 161 184

The income from funding for investment income was £161 (2019: £184) of which £161 was unrestricted (2019: £184).

7 Expenditure Non-pay expenditure Total Total Staff costs Premises Other 2020 2019 £ £ £ £ £

Expenditure on raising funds - Direct costs - - 1,072 1,072 3,184 Academy's educational operations - Direct costs 737,625 3,716 93,713 835,054 762,701 - Allocated support costs 184,488 157,280 65,269 407,037 397,156

922,113 160,996 160,054 1,243,163 1,163,041

The expenditure on raising funds was £1,072 (2019: £3,184) of which £593 was unrestricted (2019: £2,422) and £479 was restricted (2019: £762).

Net income/(expenditure) for the year includes: 2020 2019 £ £ Fees payable to auditor for: - Audit 5,200 4,960 - Other services 3,630 2,838 Operating lease rentals 3,490 3,490 Depreciation of tangible fixed assets 49,326 54,229 Net interest on defined benefit pension liability 10,000 9,000

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

8 Charitable activities Unrestricted Restricted Total Total funds funds 2020 2019 £ £ £ £ Direct costs Educational operations 25,954 809,100 835,054 762,701

Support costs Educational operations 32,819 374,218 407,037 397,156

58,773 1,183,318 1,242,091 1,159,857

The expenditure on charitable activities was £1,242,091 (2019: £1,159,857) of which £58,773 was unrestricted (2019: £57,631), £1,133,992 was restricted (2019: £1,047,997) and £49,326 was restricted fixed assets (2019: £54,229).

2020 2019 £ £ Analysis of support costs Support staff costs 184,488 160,501 Depreciation 45,610 44,569 Premises costs 106,821 112,672 Other support costs 55,862 67,834 Governance costs 14,256 11,580

407,037 397,156

9 Staff

Staff costs Staff costs during the year were: 2020 2019 £ £

Wages and salaries 640,722 562,095 Social security costs 52,742 50,480 Pension costs 222,040 162,796

Staff costs - employees 915,504 775,371 Agency staff costs 6,609 8,233

Total staff expenditure 922,113 783,604

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

9 Staff (Continued)

Staff numbers The average number of persons employed by the academy trust during the year was as follows: 2020 2019 Number Number

Teachers 6 6 Administration and support 19 17 Management 4 4

29 27

The number of persons employed, expressed as a full time equivalent, was as follows: 2020 2019 Number Number

Teachers 5 6 Administration and support 12 11 Management 4 4

21 21

Higher paid staff There were no employees whose annual remuneration was £60,000 or more.

Key management personnel The key management personnel of the academy trust comprise the governors and the senior management team as listed on page 1. The total amount of employee benefits (including employer pension contributions) received by key management personnel for their services to the academy trust was £254,045 (2019: £ 228,593).

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

10 Governors' remuneration and expenses

The headteacher and other staff governors only receive remuneration in respect of services they provide undertaking the roles of headteacher and staff, and not in respect of their services as governors. Other governors did not receive any payments, other than expenses, from the academy trust in respect of their role as governors. During the year, travel and subsistence payments totalling £nil (2019: £nil) were reimbursed to governors.

The value of governors' remuneration and other benefits for the 12 month period was as follows:

M Taylor (Headteacher and Trustee) Remuneration £55,001 - £60,000 (2019: £55,001 - £60,000) Employer's pension contributions £5,001 - £10,000 (2019: £5,001 - £10,000)

J Roberts (Staff Governor and Trustee - resigned 4 November 2019) Remuneration £15,001 - £20,000 (2019: £15,001 - £20,000) Employer's pension contributions £nil - £5,000 (2019: £nil - £5,000)

D Warbrick (Staff Governor and Trustee) Remuneration £35,001 - £40,000 (2019: £30,001 - £35,000 Employer's pension contributions £5,001 - £10,000 (2019: £5,001 - £10,000

J Barrow (Staff Governor and Trustee - appointed 5 November 2019) Remuneration £15,001 - £20,000 (2019: £nil) Employer's pension contributions £nil - £5,000 (2019: £nil)

Other related party transactions involving the governors are set out within the related parties note.

11 Insurance for governors and officers

The academy trust has opted into the Department for Education’s Risk Protection Arrangement (RPA), an alternative to insurance where UK government funds cover losses that arise. This scheme protects governors and officers from claims arising from negligent acts, errors or omissions occurring whilst on academy trust business, and provides cover up to £10,000,000. It is not possible to quantify the governors and officers indemnity element from the overall cost of the RPA scheme.

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

12 Tangible fixed assets Leasehold ICT Fixtures, Total land and equipment fittings & buildings equipment £ £ £ £ Cost At 1 September 2019 2,314,929 52,559 84,863 2,452,351 Additions - - 32,693 32,693

At 31 August 2020 2,314,929 52,559 117,556 2,485,044

Depreciation At 1 September 2019 231,153 48,844 36,292 316,289 Charge for the year 36,768 3,715 8,843 49,326

At 31 August 2020 267,921 52,559 45,135 365,615

Net book value At 31 August 2020 2,047,008 - 72,421 2,119,429

At 31 August 2019 2,083,776 3,715 48,571 2,136,062

13 Debtors 2020 2019 £ £

VAT recoverable 3,216 15,286 Other debtors 1,267 322 Prepayments and accrued income 17,342 130,491

21,825 146,099

14 Creditors: amounts falling due within one year 2020 2019 £ £

Other loans 1,643 343 Trade creditors 24,813 89,670 Other creditors 29,353 70,551 Accruals and deferred income 37,878 48,950

93,687 209,514

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

15 Creditors: amounts falling due after more than one year 2020 2019 £ £

Other loans 20,532 1,372

2020 2019 Analysis of loans £ £

Not wholly repayable within five years by instalments 20,803 - Wholly repayable within five years 1,372 1,715

22,175 1,715 Less: included in current liabilities (1,643) (343)

Amounts included above 20,532 1,372

Instalments not due within five years 9,102 -

Loan maturity Debt due in one year or less 1,643 343 Due in more than one year but not more than two years 2,943 343 Due in more than two years but not more than five years 8,487 1,029 Due in more than five years 9,102 -

22,175 1,715

Included within other loans are two Salix loans of £1,372 and £20,803 which are both interest free loans to be deducted biannually from the General Annual Grant.

16 Deferred income 2020 2019 £ £ Deferred income is included within: Creditors due within one year - 7,513

Deferred income at 1 September 2019 7,513 6,910 Released from previous years (7,513) (6,910) Resources deferred in the year - 7,513

Deferred income at 31 August 2020 - 7,513

In the prior year, at the balance sheet date the Academy Trust was holding funds received in advance for school trips taking place in the next financial year.

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

17 Funds Balance at Gains, Balance at 1 September losses and 31 August 2019 Income Expenditure transfers 2020 £ £ £ £ £ Restricted general funds General Annual Grant (GAG) 97,452 869,077 (919,639) 54,570 101,460 Other DfE / ESFA grants - 101,996 (97,115) - 4,881 Other government grants - 29,113 (29,113) - - Other restricted funds 479 19,125 (19,604) - - Pension reserve (525,000) - (69,000) 26,000 (568,000)

(427,069) 1,019,311 (1,134,471) 80,570 (461,659)

Restricted fixed asset funds Inherited on conversion 1,898,206 - (32,856) - 1,865,350 DfE group capital grants 158,583 (20,284) (6,659) (61,488) 70,152 Capital expenditure from GAG 140,241 - (8,305) 6,918 138,854 Private sector capital sponsorship 25,776 - (1,506) - 24,270

2,222,806 (20,284) (49,326) (54,570) 2,098,626

Total restricted funds 1,795,737 999,027 (1,183,797) 26,000 1,636,967

Unrestricted funds General funds 171,773 68,929 (59,366) - 181,336

Total funds 1,967,510 1,067,956 (1,243,163) 26,000 1,818,303

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

17 Funds (Continued)

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 at 31 August 2020.

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

General Annual Grant must be used for the normal running expenses of the School and any amounts carried forward at the end of a financial period must be used in accordance with the terms of the Funding Agreement.

Other DfE/EFA grants comprise of additional funding received for the furtherance of education, which must be used in accordance with the specific terms of each grant.

Other government grants includes other LEA funding of £26,981, which was fully spent at the year end.

Other restricted funds include contributions received for school trips and non-public donations and the related expenditure.

The pension reserve represents the value of the School's share of the deficit in the Local Government Pension Scheme. The value of the deficit inherited on conversion was £183,000 and has risen to £568,000 at 31 August 2020.

Restricted fixed asset funds include assets inherited on conversion and expenditure out of GAG and other capital grants during the period. Depreciation is charged against the fund.

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

17 Funds (Continued)

Comparative information in respect of the preceding period is as follows:

Balance at Gains, Balance at 1 September losses and 31 August 2018 Income Expenditure transfers 2019 £ £ £ £ £ Restricted general funds General Annual Grant (GAG) 70,928 859,185 (892,329) 59,668 97,452 Other DfE / ESFA grants - 69,085 (69,085) - - Other government grants - 14,722 (14,722) - - Other restricted funds 479 21,623 (21,623) - 479 Pension reserve (305,000) - (51,000) (169,000) (525,000)

(233,593) 964,615 (1,048,759) (109,332) (427,069)

Restricted fixed asset funds Transfer on conversion 1,931,062 - (32,856) - 1,898,206 DfE group capital grants 94,552 130,036 (6,337) (59,668) 158,583 Capital expenditure from GAG 155,277 - (15,036) - 140,241 Private sector capital sponsorship - 25,776 - - 25,776

2,180,891 155,812 (54,229) (59,668) 2,222,806

Total restricted funds 1,947,298 1,120,427 (1,102,988) (169,000) 1,795,737

Unrestricted funds General funds 160,743 71,083 (60,053) - 171,773

Total funds 2,108,041 1,191,510 (1,163,041) (169,000) 1,967,510

18 Analysis of net assets between funds Unrestricted Restricted funds: Total Funds General Fixed asset Funds £ £ £ £ Fund balances at 31 August 2020 are represented by: Tangible fixed assets - - 2,119,429 2,119,429 Current assets 181,336 199,757 - 381,093 Creditors falling due within one year - (92,387) (1,300) (93,687) Creditors falling due after one year - (1,029) (19,503) (20,532) Defined benefit pension liability - (568,000) - (568,000)

Total net assets 181,336 (461,659) 2,098,626 1,818,303

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

18 Analysis of net assets between funds (Continued)

Unrestricted Restricted funds: Total Funds General Fixed asset Funds £ £ £ £ Fund balances at 31 August 2019 are represented by: Tangible fixed assets - - 2,136,062 2,136,062 Current assets 171,773 308,817 86,744 567,334 Creditors falling due within one year - (209,514) - (209,514) Creditors falling due after one year - (1,372) - (1,372) Defined benefit pension liability - (525,000) - (525,000)

Total net assets 171,773 (427,069) 2,222,806 1,967,510

19 Pension and similar obligations

The academy trust's employees belong to two principal pension schemes: the Teachers' Pension Scheme England and Wales (TPS) for academic and related staff; and the Local Government Pension Scheme (LGPS) for non-teaching staff, which is managed by Pension Fund. Both are multi-employer defined benefit schemes.

The pension costs are assessed in accordance with the advice of independent qualified actuaries. The latest actuarial valuation of the TPS related to the period ended 31 March 2012, and that of the LGPS related to the period ended 31 March 2019.

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

Teachers' Pension Scheme

Introduction The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pension Scheme Regulations 2014. Membership is automatic for teachers in academies. All teachers have the option to opt out of the TPS following enrolment.

The TPS is an unfunded scheme to which both the member and employer makes contributions, as a percentage of salary. These contributions are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

Valuation of the Teachers’ Pension Scheme The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2016. The valuation report was published by the Department for Education on 5 March 2019.

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

19 Pension and similar obligations (Continued)

The key elements of the valuation and subsequent consultation are: • employer contribution rates set at 23.68% of pensionable pay (including a 0.08% employer administration charge) • total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service to the effective date of £218,100 million, and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £196,100 million giving a notional past service deficit of £22,000 million • the SCAPE rate, set by HMT, is used to determine the notional investment return. The current SCAPE rate is 2.4% above the rate of CPI. The assumed real rate of return is 2.4% in excess of prices and 2% in excess of earnings. The rate of real earnings growth is assumed to be 2.2%. The assumed nominal rate of return including earnings growth is 4.45%.

The next valuation result is due to be implemented from 1 April 2023.

The employer's pension costs paid to the TPS in the period amounted to £ 92,318 (201 9 : £ 57,780 ).

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

Under the definitions set out in FRS 102, the TPS is an unfunded multi-employer pension scheme. The academy trust has accounted for its contributions to the scheme as if it were a defined contribution scheme. The academy trust has set out above the information available on the scheme.

Local Government Pension Scheme

The LGPS is a funded defined-benefit scheme, with the assets held in separate trustee-administered funds. The total contributions are as noted below. The agreed contribution rates for future years are 24% for employers and 5.5%-12.5% for employees. The estimated value of employer contributions for the forthcoming year is £61,000.

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.

Total contributions made 2020 2019 £ £

Employer's contributions 61,000 54,000 Employees' contributions 15,000 13,000

Total contributions 76,000 67,000

Principal actuarial assumptions 2020 2019 % %

Rate of increase in salaries 3.0 3.1 Rate of increase for pensions in payment/inflation 2.2 2.3 Discount rate for scheme liabilities 1.7 1.8 Inflation assumption (CPI) 2.2 2.3

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

19 Pension and similar obligations (Continued)

The current mortality assumptions include sufficient allowance for future improvements in mortality rates. The assumed life expectations on retirement age 65 are: 2020 2019 Years Years Retiring today - Males 20.5 20.6 - Females 23.1 23.1 Retiring in 20 years - Males 22.0 22.0 - Females 25.0 24.8

2020 2019 £'000 £'000 0.5% decrease in Real Discount Rate 161 160 0.5% increase in the Salary Increase Rate 13 24 0.5% increase in the Pension Increase Rate (CPI) 145 132

The academy trust's share of the assets in the scheme 2020 2019 Fair value Fair value £ £

Equities 556,000 532,000 Bonds 131,000 117,000 Cash 74,000 70,000 Property 57,000 64,000

Total market value of assets 818,000 783,000

The actual return on scheme assets was £(29,000) (2019: £34,000).

Amount recognised in the Statement of Financial Activities 2020 2019 £ £

Current service cost 120,000 84,000 Past service cost - 12,000 Interest income (15,000) (20,000) Interest cost 25,000 29,000

Total operating charge 130,000 105,000

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

19 Pension and similar obligations (Continued)

Changes in the present value of defined benefit obligations 2020 £

At 1 September 2019 1,308,000 Current service cost 120,000 Interest cost 25,000 Employee contributions 15,000 Actuarial (gain)/loss (70,000) Benefits paid (12,000)

At 31 August 2020 1,386,000

Changes in the fair value of the academy trust's share of scheme assets 2020 £

At 1 September 2019 783,000 Interest income 15,000 Actuarial loss/(gain) (44,000) Employer contributions 61,000 Employee contributions 15,000 Benefits paid (12,000)

At 31 August 2020 818,000

20 Reconciliation of net (expenditure)/income to net cash flow from operating activities 2020 2019 £ £

Net (expenditure)/income for the reporting period (as per the statement of financial activities) (175,207) 28,469

Adjusted for: Capital grants from DfE and other capital income 20,284 (155,812) Investment income receivable (161) (184) Defined benefit pension costs less contributions payable 59,000 42,000 Defined benefit pension scheme finance cost 10,000 9,000 Depreciation of tangible fixed assets 49,326 54,229 Decrease/(increase) in debtors 30,816 (6,764) (Decrease)/increase in creditors (117,127) 50,135

Net cash (used in)/provided by operating activities (123,069) 21,073

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

21 Analysis of changes in net funds 1 September Cash flows 31 August 2019 2020 £ £ £

Cash 421,235 (61,967) 359,268 Loans falling due within one year (343) (1,300) (1,643) Loans falling due after more than one year (1,372) (19,160) (20,532)

419,520 (82,427) 337,093

22 Commitments under operating leases

At 31 August 2020 the total of the academy trust's future minimum lease payments under non- cancellable operating leases was:

2020 2019 £ £

Amounts due within one year 3,490 3,490 Amounts due in two and five years - 3,490

3,490 6,980

23 Capital commitments 2020 2019 £ £

Expenditure contracted for but not provided in the accounts 9,327 -

24 Related party transactions

S Colderley , brother-in-law of M Taylor , Headteacher and Accounting Officer , is employed by the academy trust as a teach ing assistant . S Colderley was employed by the academy trust prior to the appointment of M Taylor. S Colderley is paid within the normal pay scale for h is role and receives no special treatment as a result of h is relationship to a T rustee.

25 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 or she is a member, or within one year after he or she ceases to be a member, such amount as may be required, not exceeding £10 for the debts and liabilities contracted before he or she ceases to be a member.

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