ORLEANS PARK SCHOOL (A company limited by guarantee)
ANNUAL REPORT AND FINANCIAL STATEMENTS
For the year ended 31 August 2014
Company Registration No. 08165744
ORLEANS PARK SCHOOL REFERENCE AND ADMINISTRATIVE DETAILS
GOVERNORS AND ACADEMY TRUSTEES Miss E M Ball (Headteacher and Accounting Officer) Mr M E Calway Mr A A Dunlop (Appointed 3 December 2013) Mr A Gladstone (Appointed 24 September 2013) Ms N E Gouldstone Ms T Harding (Vice-Chair) Mr M P Hopkins Mr M A R Jarche Mrs I M Kosch Mr L N Mann Mrs A C Parker Mr J M Riglin Mr R J Shepherd Mr A C Shoebridge Mrs D J Simmons Mrs A E Swift Sir D W Tanner CBE Mr D S F Trigg (Chair)
More details of each Governor’s background and areas of interest are available on the school’s website.
COMPANY SECRETARY Mr J C Matthews
LEADERSHIP TEAM: − DEPUTY HEADTEACHER Ms L Howarth − DEPUTY HEADTEACHER Mr C Weightman − SCHOOL BUSINESS MANAGER Mr J C Matthews
PRINCIPLE AND REGISTERED OFFICE Richmond Road Twickenham Middlesex TW1 3BB
COMPANY REGISTRATION NUMBER 08165744 (England and Wales)
INDEPENDENT AUDITOR Baker Tilly UK Audit LLP Davidson House Forbury Square Reading Berkshire RG1 3EU
BANKERS Co-Operative Bank 17 High Street Kingston upon Thames KT1 1LP
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ORLEANS PARK SCHOOL GOVERNORS’ REPORT
The Governors present their Annual Report together with the financial statements and auditor’s report of the Charitable Company for the year ended 31 August 2014.
1. STRUCTURE, GOVERNANCE AND MANAGEMENT
Status and History Orleans Park School is an exempt charity and a company limited by guarantee, not having share capital.
The current members of the charitable company are included in the Reference and Administrative Details on page 1.
The principal activity of the Academy is to run a senior school (11 – 16) for boys and girls located in Twickenham Middlesex.
Orleans Park School was originally a local authority operated school in Twickenham, Middlesex that was founded in 1973 and converted to academy status on 1 September 2012. The charitable company was incorporated on 2 August 2012.
Orleans Park School is governed by the rules and regulations set down in its company Memorandum and Articles of Association dated 2 August 2012.
Constitution The Governors act as trustees for charitable activities of Orleans Park School and are also the directors of the Charitable Company for the purposes of company law.
Details of the Governors who served throughout the year 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.
Principal activities The charitable objectives for which the charitable company was established are set down in the governing document as follows:
To provide exceptional learning opportunities for our students by providing: • Outstanding teaching and learning. The school aims to provide outstanding teaching to promote intellectual challenge and the highest possible achievement for all students. • Care for the individual. The structures and ethos of the school ensure care for the individual and support the learning of each student. • A fit place to learn. The school aims to provide an inspirational and well run environment in which students can learn and grow. • Aspirational leadership. Every leader in the school keeps their area of responsibility under review and strives to be the best.
In our school, pupils: 1. Respect themselves, each other and the staff who work with them. 2. Develop independent learning skills and share responsibility for their progress and learning. 3. Seek and embrace every opportunity to be the best that they can be; striving for excellence. 4. Take responsibility for and have pride in themselves and their school.
All members of staff, Governors and parents/carers work together to: 1. Foster a community where everyone feels welcome, supported, valued and treated with respect. 2. Provide high quality teaching and learning opportunities for everyone. 3. Guide and support every pupil to be their very best in every way. 4. Take pride in the successes and achievements of every member of the school community.
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ORLEANS PARK SCHOOL GOVERNORS’ REPORT (CONTINUED)
Method of Recruitment and Appointment or Election of Governors The Governors have set up procedures that will enable regular reviews of the mix of skills that should be available to the board. New governors will then be sought with these skills, either as additional governors or replacements when existing governors stand down. It is anticipated that the great majority of new governors will be drawn from the local community being either parents or guardians of pupils at the school or others that have shown an interest in the future well-being of the school and its pupils. Recruitment is therefore likely to be through a combination of approaches to individuals with known skills and by wider communications to those within Twickenham, Middlesex.
To ensure a proper representation of parents, elections are held for parent governors and these positions are limited to those having children who currently attend the school. The Local Authority has the ability to nominate one governor.
New governors will be appointed to the board by the existing governors until the date of the next Annual General Meeting, at which time they are eligible for re-election for a period of 4 years. At the end of a 4 year term, retiring governors are eligible for re-election for a further term.
New governors receive information packs and meet with the Chair of Governors to discuss the role of governors and the requirements of Orleans Park School. Individual Governors attend training courses and conferences organised by appropriate bodies in order to ensure their knowledge and understanding is fully up to date.
Policies and procedures adopted for the induction and training of Governors Upon conversion, the Governing Body agreed to adopt the policies and procedures drafted by the Governance Committee of the previous Governing Body in March 2011. To supplement this, the School has a service level agreement with the local authority to provide support for governors. Governors sign the National Governors’ Association “Code of Practice” which incorporates Nolan’s “Seven Principles of Public Life”.
Risk and Corporate Governance Matters Risk is managed actively and indeed pro-actively, by identifying risk areas and avoiding them. Governor committees have the responsibility for monitoring the Academy’s exposure to individual risks that are assigned to them within the following categories, and reporting them to the Full Governing Body: • Strategic and Reputational risks (Curriculum & Achievement and Pupil & Community) • Operational risks (Premises) • Compliance risks (Finance & Governance) • Financial risks (Finance and Pay & Personnel)
All risks are assessed and awarded grades that indicate “likelihood” and “potential impact”. Steps to mitigate risks are also well documented.
Insurance The school has taken out a combined insurance policy that includes buildings and contents, and liability insurance covering employees, (including teaching and administrative staff and Governors), and third party cover arising from negligent acts errors and omissions where the school has a legal liability. The limit of indemnity for the main liability covers is £30m and for Governors Indemnity £5m. Other cover included in the policy is for personal accident, travel, and engineering plant and equipment. The total premium cost is £72,870.
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ORLEANS PARK SCHOOL GOVERNORS’ REPORT (CONTINUED)
Organisational Structure The Governors have responsibility for setting and monitoring the overall strategic direction of the charitable company, approving decisions reserved to Governors and appointing key members of staff.
The Governors meet as a board six times each year. All decisions referred to the Governors are taken by the board as a whole. Board committees meet at least six times each year to consider detailed matters and recommend decisions to the full board.
There are 6 Board committees: 1) Governance (meets six times per year) • Monitors and evaluates the strategic role, procedures, performance and composition of the Governing Body, and to make recommendations to the Governing Body concerning such matters. • Monitors and keeps under review: o the strategic role of the Governing Body. o the functioning of the Committees in support of that role. • The workload of the Governing Body and Committees with regard to approval and review of policies, procedures and the updating of the Self-Evaluation Form (SEF), and the procedures, standing orders and workings of the Governing Body. Formulates procedures for reviewing the performance of the Governing Body, to oversee and undertake such performance reviews and individual governor self-assessment as required, and to liaise with the Governing Body and its other Committees as required concerning such matters. • Ensures that the annual schedule of meetings of the Governing Body and Committees, and the agendas for such meetings, reflect the needs and priorities of School business (and to receive related feedback from the Headteacher as required). • Keeps under review the composition of the Governing Body, the recruitment, appointment and re-appointment of governors, and the balance of interests represented. • Monitors and co-ordinates the induction and mentoring of new governors. • Monitors: (i) the range of skills and experience required on the Governing Body, and to carry out a skills audit from time to time; (ii) the continuing professional development (CPD) of governors; and (iii) individual governors’ attendance. • Negotiates and reviews with the Headteacher the framework and protocol for governors’ visits to the School, in order to ensure that the Governing Body’s monitoring of the SEF and the School Development Plan (SDP) is systematically planned through by an appropriate programme of visits by a range of governors. • Makes representations and recommendations to the Governing Body regarding all the above matters.
2) Finance Committee (meets eleven times per year) Budget Setting • To consider the School’s sources of funding, and its commitments and to draft in consultation with the Headteacher and School Business Manager, an Annual Budget for approval by the Full Governing Body having regard to the proper management of the school, the requirements of the School Development Plan and the need to make appropriate forward planning. • To receive and make recommendations on the broad budget headings and areas of expenditure to be adopted each year, including the level and use of any contingency fund or balances. Budget Monitoring and Review • To review the performance of the adopted Annual Budget on a regular basis and to hold the School to account in relation to any variations. • To report any major variances or any evidence of fraud or mishandling of funds to the Governing Body, the Auditors, and if appropriate, other agencies. • To approve virements within the Annual Budget that appear to the Committee to be appropriate. • To review the overall performance of the Annual Budget at an appropriate point within the financial year and if appropriate to recommend changes to the Annual Budget to the Full Governing Body. • To monitor spending of funds within the control of the School but not forming part of its Annual Budget. • To monitor the spending of funds designated as carried forward from previous years’ spending but committed to specific purposes. Strategic Input • To contribute to the formulation of the School’s development plan, through the consideration of financial priorities and proposals, in consultation with the Headteacher, with the stated and agreed aims and objectives of the School. Audit • To consider and to make appropriate provision for the audit of the School’s finances and the Committee’s activities. • To recommend to the full governing body the appointment or reappointment of the auditors of the School and the Responsible Officer. • To receive auditors’ reports and to recommend to the full governing body action as appropriate in response to audit findings. 4
ORLEANS PARK SCHOOL GOVERNORS’ REPORT (CONTINUED)
Statutory Compliance • In consultation with the Headteacher and the Chair of Governors to draft and submit for approval to the Full Governing Body the Annual Governors Report to be appended to the School’s Annual Report. • In consultation with the School Business Manager to prepare the financial statement to form part of the Annual Report. • To monitor compliance with the Companies Act 2006 and with the requirements of HM Revenue and of financial procedures, on a regular basis, including the implementation of bank account arrangements and, where appropriate to make recommendations for improvement. Financial Overview of other Committees • To liaise with and receive reports from the other committees of the Governing Body, as appropriate, and to make recommendations to those committees about the financial aspects of matters being considered by them Statutory Compliance. Agreements affecting the School • To monitor and review and where appropriate approve the entering into of contracts for the provision of services to the School having regard to the provisions made for them in the Annual Budget. Policies • To update and where appropriate draft Policies pertaining to the matters with its remit or as shall be allocated to the Committee by the Governance Committee or Full Governing Body. Emergency • To consider, and if appropriate, ratify, or to refer to the Full Governing Body for ratification, emergency decisions having a financial implication taken by the Headteacher, the Chair of Governors, or other persons, which are outside of their remit as defined by the financial delegation matrix. Such emergency decisions must be taken in the best interest of the school. Self-Review and Evaluation • To evaluate the Committee’s effectiveness and to report this to the Governance Committee. • To review the remit of the Committee and to make recommendations to the Full Governing Body for its updating.
3) Curriculum and Achievement Committee (meets six times per year) • Monitors the progress of the Teaching and Learning, Curriculum and Assessment elements of the School Development Plan (SDP) and Self Evaluation Form (SEF). • Oversees the curriculum to ensure the delivery of the National Curriculum meets the needs of all pupils. • Reviews the policies relevant to this committee and monitors their application. • Makes recommendations for amendments to policies to full governing body (FGB) for approval. • Monitors examination results. • Monitors the performance of individual departments. • Reviews the Teaching and Learning, Curriculum and Assessment elements of the SEN provision.
4) Pay and Personnel Committee (meets six times per year) • Holds the Headteacher to account for Pay and Personnel matters and reports to the full Governing Body. • Ensures that the parts of the Pay Policy relating to Teachers’ salaries comply with the School Teachers’ Pay and Conditions Document and Guidance Notes and the parts relating to support staff reflect the guidance given by the National Joint Council for local authorities services in the “green book”. • Ensures that the confidentiality of individual salaries is protected through its working practice. • Supports the Leadership Team in their work over the recruitment and retention of staff.
5) Pupil and Community Committee (meets six times per year) • Provides a forum for detailed consideration by the Governing Body of pupil welfare issues, including child protection, pastoral care, personal, social and health education and extra-curricular activities, relevant policies, school practices, statutory requirements and LA guidance in relation to: o Admissions o Attendance and punctuality o Behaviour and anti-bullying o Fixed term and permanent exclusions o Child protection/safeguarding o External agencies used in supporting pupils o Race equality, diversity, equal opportunities and disability equality o School Council/Pupil Voice o School uniform o Sex education, relationships and drugs awareness o SEN o Pupil Support Zone o Extended schools/Extra Curricular Activities o Community Link. 5
ORLEANS PARK SCHOOL GOVERNORS’ REPORT (CONTINUED)
• Reviews Policies and Statements relating to the above. • Makes recommendations to the Governing Body in respect of any or all of the above as appropriate.
6) Premises/Health and Safety Committee (meets six times per year) • Monitors the provision of a secure and safe environment which is conducive to pupils’ learning and well-being • Ensures that regulations are adhered to with regard to health and safety issues • Monitors site security / safeguarding • Monitors the maintenance of school buildings • Oversees the enhancement and improvement of the school site, subject to budgetary constraints • Monitors the arrangements for repairs and cleaning on the site. • Monitors energy and utilities usage • Oversees all aspects of lettings/ dual use • Healthy eating / Catering • School travel plan
Additionally, ad hoc groups of governors are established to consider specific issues and make recommendations to the board.
During the year ended 31 August 2014, there have been two significant ad hoc groups. The first has overseen the planning and implementation of the school’s 6th Form which will open to students in September 2014. The second, a Task and Finish Group, has taken up issues identified at a Governance Health Check conducted in January 2014, and has made recommendations, several of which have been adopted by the Full Governing Body. The most significant development is that, in September 2014, the number of Board committees will be reduced from 6 to 3. These will consist of: • Finance and Resources Committee • Pay and Personnel Committee • Student Committee (provisional title)
The Headteacher is the Accounting Officer and works closely with both the other governors and the senior staff of Orleans Park School.
The day-to-day management of Orleans Park School rests with the Headteacher who has overall responsibility for the school. The Headteacher is responsible for leading the Senior Leadership Team (‘SLT’), including the Deputy Heads and the School Business Manager.
Decisions are taken at meetings of the full board in consideration of reports and recommendations from Governors’ committees and the Headteacher. Members of staff, in addition to the Headteacher and Deputy Headteacher, attend committee meetings to present reports in their areas of responsibility, for example curriculum development and special educational needs.
A committee of governors undertakes the annual performance review of the Headteacher and monitors performance and achievements against targets.
Individual governors assume responsibility for particular areas of school life, for example health and safety, special educational needs, and report thereon.
Throughout the management of the school and in the conduct of the governing body, the emphasis is on openness, accessibility and accountability. Governors are encouraged to, and do, participate fully in the work of the committees and the Governing body and are encouraged to bring matters of concern before governors.
Annually, after publication of examination results, governors undertake a thorough review of the results and consider implications for the curriculum and pastoral activities within the school.
Each year the Senior Leadership Team meets to prepare the School Development Plan (SDP) and this is subsequently presented to governors for consideration, challenge and approval. The plan details academic and educational targets and includes strategic aims, and well as initiatives to further develop the school community. An objective of the SLT is to ensure all round excellence within the school and the best possible education for students as well as good working conditions for staff. Once agreed, management has the responsibility of delivering the plan and reporting progress on a regular basis to the various committees and ultimately the full governing body.
Coordinated with the objectives of the SDP is the annual financial plan and budget, which is the responsibility of the Headteacher and School Business Manager who present it to the Finance & Resources Committee for consideration and challenge prior to making a recommendation to the Governors. Once approved, the School Business Manager monitors income and expenditure and will regularly report the financial status of the school to the Headteacher, Finance & Resources Committee, and the Full Governing Body.
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ORLEANS PARK SCHOOL GOVERNORS’ REPORT (CONTINUED)
2. OBJECTIVES AND PERFORMANCE MEASURES
Charitable activities To advance for the public benefit education in the United Kingdom, in particular but without prejudice to the generality of the foregoing by establishing, maintaining, carrying on, managing and developing a school offering a broad and balanced curriculum (“the Academy”).
For further details see the principal activities on page 2.
Public Benefit The Governors have taken The Charity Commission’s specific guidance on public benefit (contained within the guidance document “The Advancement of Education for the Public Benefit”) into consideration in preparing their statements on public benefit contained within this Governors’ annual report.
Benefits and Beneficiaries In accordance with its charitable objectives, the charitable company strives to advance the education of the pupils attending the school. The charitable company’s primary beneficiaries are therefore the pupils, and benefits to pupils are provided through continuing to maintain a high standard of education throughout the school.
Governors’ Assessment of Public Benefit In order to determine whether or not the charitable company has fulfilled its charitable objectives for public benefit, the Governors gather evidence of the success of Academy School’s activities. • Examination results measured against targets set at the beginning of each school year and national benchmarks. • Progress made against the School Development plan and budgets. • Internal departmental inspections by SLT. • Headteacher reports to governors covering all aspects of school operations, performance and staff and pupil welfare.
3. STRATEGIC REPORT
Achievements and Performance
Orleans Park School has experienced another very successful year. We are understandably proud of our many achievements.
We continue to be heavily oversubscribed and in 2013/14 received 1,105 applications for the 200 places available in year 7 in September 2014. This was a substantial increase from previous years.
In the light of the conversion to Academy Status in September 2012, the Governing Body continues to review its role in order to ensure robustness in both support and challenge to the school. This year the Governing Body has reviewed its working practice and has decided to reduce the number of committees from September 2014. The Senior Leadership Team and the Governing Body together have developed Strategic Priorities for the next 5 years.
As part of the school’s on-going system of self-review and evaluation, the school surveyed parents. The results said that 96% of their children were happy at school, 98% believed their child made good progress and were taught well at school. 98% of the parents that completed the survey would recommend the school to other parents.
The Sixth Form opened to students in September 2014 and the new Reception Block opened in August 2014. 109 students have joined the Sixth Form, which is above our initial estimates. 23 ‘A’ Level subjects will be taught across a wide range of subjects. We appointed 12 additional teaching and support staff to increase the capacity and provide appropriate expertise to deliver a successful and vibrant Sixth Form. The Ground floor of the Sixth Form Block will open in early November 2014 and the remaining two floors in January 2015.
The school made considerable progress on the priorities that it set itself this year. Similar themes will continue next year all linked to the 5 year Strategic Priorities set earlier in the year.
• To narrow the gap and ensure all groups achieve in line with our school average in particular FSM, SEN & low attainers. • To improve the standards and rate of progress of pupils in Maths & English reaching FFTD targets. • To further improve the quality of leadership & management and in particular the quality of subject leadership. • To further whole school systems of accountability & monitoring of performance in relation to academic standards through Appraisal, Line Management and the Self Evaluation cycle. • To ensure high quality teaching and learning so that teaching is judged outstanding and good and for all departments to be judged at least consistently good. • To ensure the successful start to the 6th Form. 7
ORLEANS PARK SCHOOL GOVERNORS’ REPORT (CONTINUED)
The school offered many opportunities for trips, both local and residential as well as many other extra-curricular activities. Trips have included various Duke of Edinburgh Bronze and Silver expedition weekends, outdoor education weekends in the woods, at the coast and in the mountains. We encourage all pupils to attend these trips. Foreign trips this year have included China at Easter 2014, Paris in June 2014, Ypres in July 2014 and Skiing in February 2014. Many day trips have been organised including Theatre trips, visits to various London museums and exhibitions.
We have once again achieved considerable sporting success during the year in a wide range of sports such as football, tennis, volleyball and athletics. We are proud to have retained the overall Borough Championships in both Cross Country and Athletics. We continue to keep close links with a number of clubs including Harlequins rugby, Twickenham cycle club and the local tennis and rowing clubs. A significant number of our students took part in the Richmond team for the London Youth Games.
We have been involved in a number of successful projects in the community this year. We have run a series of parenting sessions and a course designed to teach parents how to help their child at home with mathematics.
Students led teaching sessions for primary pupils in mathematics, ICT, animation, art and a range of sporting activities. A group of students participated in an Art Therapy workshop with pupils from Clarendon School in Hampton. Students have raised considerable amounts of money for a number of charities, both local and national and took part in numerous pupil voice activities in school. Orleans Park pupils regularly volunteer to visit the Lynde House Care Home, East Twickenham including the Brass Bunch band that performed at Christmas.
In the 2014 public examinations the school achieved 68% 5A* to C including English and mathematics and 80% 5A* to C. 28% of all grades were A*/A, with over a quarter of students achieving at least 5 A*.The vast majority of subjects made expected progress and a significant number of subjects exceed the progress expected by students. In most of the schools progress measures we have exceed the schools targets. Achievements in the core subjects are strong and the percentage of pupils achieving the English Baccalaureate (“EBacc”) was 38%, considerably above the national floor target.
Financial review
Financial and risk management objectives and policies Careful budgeting and subsequent regular monitoring of income and expenditure mitigate financial risk. Cash flow is eased by monthly payments of the GAG by the EFA and there are not usually any liquidity risks. However, since July 2014, the Governors have been aware that HMRC have been very slow at paying the school reclaimed VAT. At one point this amounted to over £150,000 which clearly exposed the school to considerable risk. The auditors were made aware of this position and included “VAT Recoverable” as a deficiency in internal control.
Subsequent to the year end, this issue has been resolved. The Governors have asked the Finance Team to closely monitor future VAT payments.
The school has appropriate debtor controls in place.
Local Government Pension Scheme At 31 August 2014 the School’s shortfall with regard to the Local Government Pension scheme was £803,000 (2013: £407,000), as a result the contribution rate to the scheme was reduced by 0.8% to 20.9% and with a payment of £19,000 per year, to be paid monthly.
Reserves Policy The Governors’ policy is to generate reserves to provide funds to continue to enhance the educational facilities and to fund future development projects. The Governors review the reserves policy annually to ensure this aim can be achieved.
The Governors intend to utilise these reserves to improve the infrastructure of the School. The current level of held funds is £500,000 which is in line with the policy. The Governors believe this to be an appropriate level for future plans.
Investments Policy The school has established a series of Base Rate Reward Accounts with Barclays. These provide cover from any potential exposure i.e. the school has cash in two different banks and earns an interest rate of 100% the Bank of England Base Rate where no withdrawal is made in the calendar month.
Plans for Future Periods 1 Achievement 1.1 Continue to close the gap and ensure all groups (PP, SEN, Boys, Low Ability) achieve in line with our school average. 1.2 To continue to improve the rate of progress across all subject areas. KS4 = 85% 3LoPs, 45% 4LoPs KS5 = L3VA ‘above average’
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ORLEANS PARK SCHOOL GOVERNORS’ REPORT (CONTINUED)
2 Quality of Teaching 2.1 To ensure that teaching matches the individual needs of all students in all key stages. 2.2 To promote pupils’ learning and progress in literacy.
3 Behaviour & Safety 3.1 Introduce a new rewards system across the school through the use of SIMS Behaviour Management. 3.2 Further enhance our provision and monitoring of student personal development and well being.
4 Leadership & Management 4.1 To continue to deliver an outstanding Curriculum to meet the needs of all our learners and promote high achievement for all students. 4.2 To develop Student Leadership across the school.
5 Professional Development 5.1 To develop staff understanding of their role and responsibility in meeting the Teaching Standards and strategic priorities. 5.2 To offer pathways for the emerging teacher to the established one using coaching, research and development.
Principal risks and uncertainties Decrease in pupil numbers would reduce the school’s income and therefore have a negative impact on the school budget. However, this is highly unlikely as the school has been regularly oversubscribed.
Any major establishment repairs required would have a negative impact on the school budget. However, regular maintenance work and inspections mitigate the likelihood of such unexpected events. Similarly, the school successfully bid for additional capital funding from the EFA in 2014.
The annual budget includes a contingency line should any of the above events occur.
4. 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.
5. AUDITOR
Baker Tilly UK Audit LLP has indicated its willingness to continue in office.
Statement as to Disclosure of Information to the Auditor
The Governors at the date of approval of this Governors' annual report confirm that so far as each of them is 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.
The Governors’ Annual Report is approved by order of the board of trustees and the Strategic Report (included therein) is approved by the board of trustees in their capacity as the directors at a meeting on 10 December 2014 and signed on its behalf by:
……………………………. Ms T Harding Vice-Chair of Governors
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ORLEANS PARK SCHOOL GOVERNANCE STATEMENT
SCOPE OF RESPONSIBILITY
As Governors, we acknowledge that we have overall responsibility for ensuring that Orleans Park School has an effective and appropriate system of control, financial and otherwise. However, such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives, and can provide only reasonable and not absolute assurance against material misstatement or loss.
The Governing Body has delegated the day-to-day responsibility to the Headmaster as Accounting Officer, for ensuring that 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 Orleans Park School and the Secretary of State for Education. He is 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 5 times during the year (the AGM took place alongside one of these 5 meetings). Attendance during the year at meetings of the governing body was as follows:
GOVERNOR MEETINGS ATTENDED OUT OF POSSIBLE
Miss E M Ball 6 6 Mr M E Calway 4 6 Mr A A Dunlop 5 6 Mr A Gladstone 5 6 Ms N E Gouldstone 5 6 Ms T Harding 5 6 Mr MP Hopkins 4 6 M A R Jarche 3 6 Mrs I M Kosch 4 6 Mr L N Mann 6 6 Mrs A C Parker 4 6 Mr J M Riglin 4 6 Mr R J Shepherd 4 6 Mr A C Shoebridge 5 6 Mrs D J Simmons 6 6 Mrs A E Swift 4 6 Sir D W Tanner CBE 4 6 Mr J D Tompkins 6 6 Mr D S F Trigg 5 6
Governance During the year the Governors reviewed their committee structure and compiled a Risk Register. Both will be implemented from 1 September 2014.
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ORLEANS PARK SCHOOL GOVERNANCE STATEMENT (CONTINUED)
THE PURPOSE OF THE SYSTEM OF INTERNAL CONTROL
The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk of failure to achieve policies, aims and objectives; it can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an on-going process designed to identify and prioritise the risks to the achievement of the School’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 Orleans Park School up to the date of approval of the annual report and financial statements.
CAPACITY TO HANDLE RISK
The Governing Body has reviewed the key risks to which the Academy Trust is exposed together with the operating, financial and compliance controls that have been implemented to mitigate those risks. The Governing Body is of the view that there is a formal on-going process for identifying, evaluating and managing the Academy Trust's significant risks that has been in place for the year ended 31 August 2014 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; • regular reviews by the Finance and General Purposes 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; and the • identification and management of risks.
The Governing Body has considered the need for a specific internal audit function and has decided not to appoint an internal auditor.
A supplementary programme of work is conducted by external auditors, reviewing the financial controls in place and comparing them to the Academies Financial Handbook and the Charity Commission’s publication CC8 “Internal Financial Controls for Charities”. This review of Core Financial Controls was tailored to assess the procedures and controls in place within the Academy to mitigate these risks. The outcomes of this process are reported to the Finance Committee and FGB and no issues have been noted during the year under review.
REVIEW OF EFFECTIVENESS
As Accounting Officer, Miss E M Ball 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 external auditor; • The financial management and governance self-assessment process; and • The work of the executive managers within the Orleans Park School 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 Committee and a plan to ensure continuous improvement of the system is in place.
Approved by order of the members of the Governing Body on 10 December 2014 and signed on its behalf by:
……………………………. ……………………………. Ms T Harding Miss E M Ball Vice-Chair of Governors Accounting Officer
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ORLEANS PARK SCHOOL STATEMENT ON REGULARITY, PROPRIETY AND COMPLIANCE
As Accounting Officer of Orleans Park School, I have considered my responsibility to notify the Academy Trust governing body and the Education Funding Agency of material irregularity, impropriety and non-compliance with EFA terms and conditions of funding, under the funding agreement in place between the Academy Trust and the Secretary of State. As my part of my consideration I have had due regard to the requirements of the Academies Financial Handbook.
I confirm that I and the Academy Trust governing body are able to identify any irregular or improper use of funds by the Academy Trust, or material non-compliance with the terms and conditions of funding under the Academy Trust’s funding agreement and the Academies Financial Handbook.
I confirm that no instances of material irregular, 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 trustees and EFA.
……………………………. Miss E M Ball Accounting Officer
10 December 2014
12
ORLEANS PARK SCHOOL STATEMENT OF GOVERNORS’ RESPONSIBILTIES
The Governors (who are also the trustees and directors of Orleans Park School for the purposes of charity and company law) are responsible for preparing the Governors' Annual Report and the financial statements in accordance with the Academies Accounts Direction 2014 issued by the Education Funding Agency, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
Company law requires the Governors to prepare financial statements for each financial year. Under company law the Governors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charitable Company as at the balance sheet date, and of the incoming resources and application of resources, including income and expenditure, for that period. In preparing those financial statements, the Governors are required to:
• select suitable accounting policies and then apply them consistently; • observe the methods and principles in the Charities SORP; • make judgments and estimates that are reasonable and prudent; • state whether applicable UK Accounting Standards have been followed subject to any material departures disclosed and explained in the financial statements; and • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charitable Company will continue in business.
The 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 financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charitable Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The 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 grants received from the EFA/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 financial statements may differ from the legislation in other jurisdictions.
……………………………. Ms T Harding Vice-Chair of Governors
10 December 2014
13
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ORLEANS PARK SCHOOL
We have audited the financial statements of Orleans Park School for the year ended 31 August 2014 on pages 15 to 31. The financial reporting framework that has been applied in their preparation is applicable law, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), and the Academies Accounts Direction 2013 to 2014 issued by the Education Funding Agency.
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.
Respective responsibilities of Governors and auditor As explained more fully in the Statement of Governors’ Responsibilities set out on page 13, the Governors (who act as trustees for the charitable activities of the charitable company, and are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.
Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.
Scope of the audit of the financial statements A description of the scope of an audit of financial statements is provided on the FRC’s website at http://www.frc.org.uk/auditscopeukprivate.
Opinion on financial statements In our opinion the financial statements:
• give a true and fair view of the state of the charitable company’s affairs as at 31 August 2014 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; • have been prepared in accordance with the Companies Act 2006; and • have been prepared in accordance with the Academies: Accounts Direction 2013 to 2014 issued by the Education Funding Agency.
Opinion on other requirement of the Companies Act 2006 In our opinion the information given in the Governors’ Report and the incorporated Strategic Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• the charity has not kept adequate accounting records, or returns adequate for our audit have not been received from branches not visited by us; or • the financial statements 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.
……………………………. Kerry Gallagher (Senior Statutory Auditor) For and on behalf of BAKER TILLY UK AUDIT LLP, Statutory Auditor Chartered Accountants Davidson House Forbury Square Reading Berkshire RG1 3EU
2014
14
ORLEANS PARK SCHOOL STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT AND STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES) For the year ended 31 August 2014
Notes Unrestricted Restricted Restricted Total Total funds general fixed asset 2014 2013 funds funds £ £ £ £ £
INCOMING RESOURCES Income from generated funds: Voluntary income 1 154,272 111,032 295,409 560,713 258,980 Voluntary income – transfer from local authority on conversion - - - - 26,029,696 Activities for generating funds 2 340,708 1,916 - 342,624 247,017 Income from charitable activities: Academy’s educational operations 3 - 7,041,294 - 7,041,294 6,688,017
Total incoming resources 494,980 7,154,242 295,409 7,944,631 33,223,710
RESOURCES EXPENDED Cost of generating funds: Cost of generating voluntary income 4 278,869 191,575 - 470,444 318,813 Charitable activities: Academy’s educational operations 4 872,930 6,512,788 331,354 7,717,072 7,251,733 Governance costs 6 - 17,919 - 17,919 20,900
Total resources expended 4 1,151,799 6,722,282 331,354 8,205,435 7,591,446
NET (OUTGOING)/INCOMING RESOURCES BEFORE TRANSFERS (656,819) 431,960 (35,945) (260,804) 25,632,264 Gross transfers between funds - - - - -
NET (EXPENDITURE)/INCOME FOR THE YEAR (656,819) 431,960 (35,945) (260,804) 25,632,264
OTHER RECOGNISED GAINS AND LOSSES Actuarial (loss)/gain on defined benefit schemes 14 - (435,000) - (435,000) 341,000
NET MOVEMENT IN FUNDS 15 (656,819) (3,040) (35,945) (695,804) 25,973,264
RECONCILIATIONS OF FUNDS Total funds brought forward 656,819 (193,740) 25,510,185 25,973,264 -
TOTAL FUNDS CARRIED FORWARD - (196,780) 25,474,240 25,277,460 25,973,264
All of the Academy Trust’s activities derive from continuing operations during the above two financial periods.
15
ORLEANS PARK SCHOOL BALANCE SHEET As at 31 August 2014 Company Registration No. 08165744
Notes 2014 2014 2013 2013 £ £ £ £ FIXED ASSETS Tangible fixed assets 10 25,651,097 25,521,480
CURRENT ASSETS Stock 11 9,797 13,060 Debtors 12 285,440 156,443 Cash at bank and in hand 507,379 1,057,778
802,616 1,227,281
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 13 (373,253) (368,497)
NET CURRENT ASSETS 429,363 858,784
TOTAL ASSETS LESS CURRENT LIABILITIES 26,080,460 26,380,264
Pension scheme liability 14 (803,000) (407,000)
NET ASSETS INCLUDING PENSION LIABILITY 25,277,460 25,973,264
FUNDS OF THE ACADEMY TRUST: RESTRICTED FUNDS Fixed asset fund 25,474,240 25,510,185 General fund 606,220 213,260
Restricted funds excluding pension reserve 26,080,460 25,723,445 Pension reserve (803,000) (407,000)
TOTAL RESTRICTED FUNDS 15 25,277,460 25,316,445
TOTAL UNRESTRICTED FUNDS 15 - 656,819
TOTAL FUNDS 15 25,277,460 25,973,264
The financial statements on pages 15 to 31 were approved by the Governors and authorised for issue on 10 December 2014, and are signed on their behalf by:
……………………………. Ms T Harding Vice-Chair of Governors
16
ORLEANS PARK SCHOOL CASH FLOW STATEMENT For the year ended 31 August 2014
Notes 2014 2013 £ £
NET CASH FROM OPERATING ACTIVITIES Net (outgoing)/incoming resources and net income for the year (260,804) 25,632,264 FRS17 pension finance costs (39,000) 5,000 Depreciation 351,144 373,518 Cash impact on conversion - (890,248) LGPS Pension on conversion - 743,000 Land and buildings on conversion - (25,882,448) Capital grants from DfE and other capital income (295,409) - Decrease/(increase) in stocks 3,263 (13,060) Increase in debtors (128,997) (156,443) Increase in creditors 4,756 368,497
(365,047) 180,080 CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT Purchase of fixed assets (185,352) (12,550)
Cash transferred on conversion to an Academy Trust - 890,248
(DECREASE)/INCREASE IN CASH IN THE YEAR (550,399) 1,057,778
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS
NET FUNDS AT 1 SEPTEMBER 1,057,778 -
NET FUNDS AT 31 AUGUST 17 507,379 1,057,778
17
ORLEANS PARK SCHOOL ACCOUNTING POLICIES
BASIS OF PREPARATION The financial statements have been prepared under the historical cost convention in accordance with applicable United Kingdom Accounting Standards, the Statement of Recommended Practice (‘SORP 2005’) ‘Accounting and Reporting by Charities’, the Academies: Accounts Direction 2013 to 2014 issued by the Education Funding Agency and Companies Act 2006. A summary of the principal accounting policies, which have been applied consistently, except where noted, is set out below.
GOING CONCERN No material uncertainties that may cast significant doubt about the ability of the Academy to continue as a going concern have been identified by the Trustees, therefore the financial statements have been prepared on a going concern basis.
INCOMING RESOURCES All incoming resources are recognised when the Academy Trust has entitlement to the funds, certainty of receipt and the amount can be measured with sufficient reliability.
Grants receivable Grant income is included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the year is shown in the relevant funds on the balance sheet. The general annual grant (‘the GAG’) from the DfE, which is intended to meet recurrent costs, is credited directly to the Statement of Financial Activities. Other grants from government agencies and other bodies are recognised in the period in which they are receivable to the extent the conditions of funding have been met. Where income is received in advance of entitlement of receipt its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received the income is accrued.
Other income Other income including hire of facilities is recognised in the period it is receivable and to the extent the goods have been provided or the completion of the service.
Interest receivable Interest receivable is included in the Statement of Financial Activities on a receivable basis, and is stated inclusive of related tax credits.
RESOURCES EXPENDED All expenditure is recognised in the period in which a liability is incurred and has been classified under headings that aggregate all costs related to that category. Where costs cannot be directly attributed to particular headings they have been allocated to each activity cost category on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.
Charitable activities are costs incurred on the Academy Trust’s educational operations.
Governance costs include the costs attributable to the Academy Trust’s compliance with constitutional and statutory requirements, including audit, strategic management and governors’ meetings and reimbursed expenses.
All resources expended are inclusive of irrecoverable VAT.
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 General funds are resources subject to specific restrictions imposed by funders or donors, and include grants from the Education Funding Agency.
Restricted Fixed Assets Funds are resources which are to be applied to specific capital purposes imposed by the Education Funding Agency where the asset acquired or created is held for a specific purpose.
18
ORLEANS PARK SCHOOL ACCOUNTING POLICIES (CONTINUED)
TANGIBLE FIXED ASSETS Tangible fixed assets costing £3,000 or more are capitalised at cost 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. Where the related grants require the asset to be held for a specific purpose they are credited to a restricted fixed asset fund in the Statement of Financial Activities and carried forward in the Balance Sheet, with this amount being reduced over the useful economic life of the related asset on a basis consistent with the depreciation policy.
Depreciation is provided on all tangible fixed assets other than freehold land, at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful lives, as follows:
Leasehold land Over the term of the lease Leasehold buildings Between 10 – 50 years Fixtures, fittings and equipment 10 years
A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of Financial Activities.
TAXATION The Academy Trust is considered to pass the tests set out in paragraph 1 schedule 6 of the Finance Act 2010 and therefore meets the definition of a Charitable Company for United Kingdom corporation tax purposes. Accordingly, the Charitable Company 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.
STOCKS Stocks are valued at the lower of cost and net realisable value, cost is determined using the weighted average cost basis. Net realisable value is based upon estimated selling price less further costs expected to be incurred to completion and disposal. Provision is made for obsolete and slow-moving items.
LEASED ASSETS AND OBLIGATIONS In respect of leases that are “operating leases”, the annual rentals are charged to the statement of financial activities on a straight line basis over the lease term.
PENSION BENEFITS Retirement benefits to employees of the Academy Trust are provided by the Teachers’ Pension Scheme (‘TPS’) and the Local Government Pension Scheme (‘LGPS’). These are defined benefit schemes, are contracted out of the State Earnings- Related Pension Scheme (‘SERPS’), and the assets are held separately from those of the Academy Trust.
The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees’ working lives with the Academy Trust in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quinquennial valuations using a prospective benefit method. As stated in note 14, the TPS is a multi-employer scheme and the Academy Trust is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. The TPS is therefore treated as a defined contribution scheme and the contributions recognised as they are paid each year.
The LGPS is a funded scheme and the assets are held separately from those of the Academy Trust in separate trustee administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent term and currency to the liabilities. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The amounts charged to operating surplus are the current service costs and gains and losses on settlements and curtailments. They are included as part of staff costs. Past service costs are recognised immediately in the Statement of Financial Activities if the benefits have vested. If the benefits have not vested immediately, the costs are recognised over the period until vesting occurs. The expected return on assets and the interest cost are shown as a net finance amount of other finance costs or credits adjacent to interest. Actuarial gains and losses are recognised immediately in other gains and losses.
19
ORLEANS PARK SCHOOL NOTES TO FINANCIAL STATEMENTS For the year ended 31 August 2014
1 VOLUNTARY INCOME
Unrestricted funds Restricted Restricted Total Total funds fixed asset 2014 2013 funds £ £ £ £ £
Donations – capital - 51,928 - 51,928 125,877 Private sponsorship 1,896 56,701 - 58,597 40,435 Other donations 152,376 2,403 295,409 450,188 92,668
154,272 111,032 295,409 560,713 258,980
2 ACTIVITIES FOR GENERATING FUNDS
Unrestricted funds Restricted Restricted Total Total funds fixed asset 2014 2013 funds £ £ £ £ £
Hire of facilities 19,674 - - 19,674 29,693 School fund income 321,034 - - 321,034 205,406 Catering income - 1,916 - 1,916 11,918
340,708 1,916 - 342,624 247,017
20
ORLEANS PARK SCHOOL NOTES TO FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 August 2014
3 FUNDING FOR ACADEMY TRUST’S EDUCATIONAL OPERATIONS
Unrestricted Restricted Restricted Total Total funds funds fixed asset 2014 2013 fund £ £ £ £ £
DfE/EFA REVENUE GRANTS General annual grant (GAG) - 5,727,161 - 5,727,161 5,651,066 Other DfE/EFA grants - 282,734 - 282,734 240,772
- 6,009,895 - 6,009,895 5,891,838 OTHER GOVERNMENT GRANTS Local Authority grants - 1,031,399 - 1,031,399 796,179
- 1,031,399 - 1,031,399 796,179
- 7,041,294 - 7,041,294 6,688,017
4 RESOURCES EXPENDED
Staff Non pay expenditure Total Total costs Premises Other costs 2014 2013 £ £ £ £ £
Costs of activities for generating funds - - 470,444 470,444 318,813
Academy’s educational operations Direct costs 4,839,294 - 537,593 5,376,887 4,707,203 Allocated support costs 1,013,065 529,894 797,226 2,340,185 2,544,530
5,852,359 529,894 1,805,263 8,187,516 7,570,546
Governance costs including allocated support costs - - 17,919 17,919 20,900
5,852,359 529,894 1,823,182 8,205,435 7,591,446
2014 2013 £ £ Net incoming resources for the year
Operating leases: Plant and machinery 8,572 8,572 Fees payable to Baker Tilly UK Audit LLP and its associates for: Audit 15,460 13,690 Other services 2,459 7,210
21
ORLEANS PARK SCHOOL NOTES TO FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 August 2014
5 CHARITABLE ACTIVITIES RESOURCES EXPENDED 2014 2013 £ £
DIRECT COSTS Teaching and educational support staff costs 4,839,294 4,397,477 Technology costs 184,486 87,800 Educational supplies 217,044 122,017 Examination fees 66,088 62,500 Staff development 50,622 26,773 Other direct costs 19,353 10,636
5,376,887 4,707,203
ALLOCATED SUPPORT COSTS Support staff costs 1,013,065 823,981 Depreciation 351,144 373,518 Recruitment and support 49,237 40,251 Maintenance of premises and equipment 288,848 570,681 Cleaning 118,734 111,399 Rent and rates 38,090 7,944 Energy 84,222 108,728 Insurance 119,582 133,213 Security and transport 10,461 14,478 Other support costs 275,802 342,337 Pension finance cost (9,000) 18,000
2,340,185 2,544,530
6 GOVERNANCE COSTS
2014 2013 £ £
Auditor’s remuneration: Audit of financial statements 12,200 10,550 Other audit 3,260 3,140 Other services 2,459 7,210
17,919 20,900
22
ORLEANS PARK SCHOOL NOTES TO FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 August 2014
7 STAFF COSTS
2014 2013 Number Number
The average monthly number of persons (including senior management team) employed by the Academy Trust during the year was as follows:
Teachers 82 79 Administration and support 49 44
131 123
2014 2013 Number Number
The average monthly number of persons (including senior management team) employed by the Academy Trust during the year, expressed as full time equivalents, was as follows:
Teachers 78 73 Administration and support 45 44
123 117
2014 2013 £ £
Staff costs for the above persons:
Wages and salaries 4,175,503 3,770,050 Social security costs 342,099 312,869 Pension costs 694,617 599,358
5,212,219 4,682,277 Supply teacher costs 640,140 557,181
5,852,359 5,239,458
2014 2013 Number Number
The number of employees whose emoluments fell within the following bands was:
£60,001 - £70,000 5 - £70,001 - £80,000 - 1 £80,001 - £90,000 1 - £90,001 - £100,000 - 1
The above employees participated in the Teachers’ Pension Scheme. During the year ended 31 August 2014 pension contributions for these staff amounted to £55,596 (2013: £23,085).
23
ORLEANS PARK SCHOOL NOTES TO FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 August 2014
8 GOVERNORS’ REMUNERATION AND EXPENSES
In addition to being the accounting officer (and also a Governor), Ms E M Ball was Headteacher of Orleans Park School at the year end. In respect of her role as Headteacher, during the year Ms E M Ball received emoluments for qualifying services amounting to £86,066 and the Charitable Company incurred pension costs of £12,135 in respect of pension benefits accruing to her.
Staff Governors only receive remuneration in respect of services they provide undertaking the roles of staff members under their contracts of employment and not in respect of their services as Governors. Other Governors did not receive any payments from the Academy Trust in respect of their role as Governors. The value of the staff Governors’ remuneration was £109,265 (2013: £162,608) and the Charitable Company incurred pension costs of £18,648 (2013: £23,387) in respect of pension benefits accruing to them.
None of the Governors received any remuneration for services as a trustee of the charity or as a director of the company during the current year. None of the Governors received reimbursement for expenses incurred in relation to the Charitable Company during the year.
9 GOVERNORS’ AND OFFICERS’ INSURANCE
The School has taken out a combined insurance policy that includes buildings and contents insurance, employer’s liability insurance and at no additional cost, professional indemnity insurance cover for the Academy (including Governors, trustees and teaching and administrative staff) for liability arising from negligent acts, errors and omissions committed in good faith, notified during the insurance period. Cover is provided up to an aggregate limit of £1,000,000 in the insurance period. The cost of this total insurance package during the year was £72,870.
10 TANGIBLE FIXED ASSETS Leasehold Land Furniture & and Buildings Equipment Total £ £ £ Cost: 1 September 2013 25,882,448 12,550 25,894,998 Additions 295,409 185,352 480,671
31 August 2014 26,177,857 197,902 26,375,759
Depreciation: 1 September 2013 372,263 1,255 373,518 Charged in the year 331,354 19,790 351,144 Disposals - - -
31 August 2014 703,617 21,045 724,662
Net book value 31 August 2014 25,474,240 176,857 25,651,097
31 August 2013 25,510,185 11,295 25,521,480
11 STOCKS 2014 2013 £ £
Uniform stocks 9,797 13,060
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ORLEANS PARK SCHOOL NOTES TO FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 August 2014
12 DEBTORS 2014 2013 £ £
Trade debtors 3,464 - Prepayments and accrued income 96,829 97,685 VAT recoverable 178,502 46,840 Other debtors 6,645 11,918
285,440 156,443
13 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2014 2013 £ £
Trade creditors 130,199 90,118 Other taxation and social security 103,713 99,177 Other creditors 113,609 115,100 Accruals 25,732 64,102
373,253 368,497
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ORLEANS PARK SCHOOL NOTES TO FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 August 2014
14 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 The London Borough of Richmond upon Thames. Both are defined-benefit schemes.
The pension costs are assessed in accordance with the advice of independent qualified actuaries. The latest actuarial valuation of the TPS was 31 March 2004 and of the LGPS 31 March 2013.
Contributions amounting to £89,747 (2013: £81,289) were payable to the scheme at 31 August 2014 and are included within creditors.
Teachers’ Pension Scheme
The Teachers' Pensions Scheme (“TPS”) is a statutory, contributory, defined benefit scheme. The regulations under which the TPS operates are the Teachers' Pensions Regulations 2010. Retirement and other pension benefits, including annual increases payable under the Pensions (Increase) Acts are, as provided for in the Superannuation Act 1972, paid out of monies provided by Parliament. Under the unfunded TPS, teachers' contributions on a 'pay as-you- go' basis, and employers' contributions, are credited to the Exchequer under arrangements governed by the above Act.
The Teachers' Pensions Regulations require an annual account, the Teachers' Pensions Budgeting and Valuation Account, to be kept of receipts and expenditure (including the cost of pensions’ increases). From 1 April 2001 to 31 March 2011, the Account has been credited with a real rate of return (in excess of price increases and currently set at 3.5%), which is equivalent to assuming that the balance in the Account is invested in notional investments that produce that real rate of return.
Valuation of the Teachers’ Pensions Scheme Not less than every four years the Government Actuary (“GA”), using normal actuarial principles, conducts a formal actuarial review of the TPS. 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. Many of these are being discussed in the context of the design for a reformed TPS, as set out in the Proposed Final Agreement, and scheme valuations are, therefore currently suspended.
The contribution rate paid into the TPS is assessed in two parts. First, a standard contribution rate (“SCR”) is determined. This is the contribution, expressed as a percentage of the salaries of teachers and lecturers in service or entering service during the period over which the contribution rate applies, which if it were paid over the entire active service of these teachers and lecturers would broadly defray the cost of benefits payable in respect of that service. Secondly, a supplementary contribution is payable if, as a result of the actuarial investigation, it is found that accumulated liabilities of the Account for benefits to past and present teachers, are not fully covered by standard contributions to be paid in future and by the notional fund built up from past contributions. The total contribution rate payable is the sum of the SCR and the supplementary contribution rate.
The last valuation of the TPS related to the period 1 April 2001 – 31 March 2004. The GA’s report of October 2006 revealed that the total liabilities of the Scheme (pensions currently in payment and the estimated cost of future benefits) amounted to £166,500 million. The value of the assets (estimated future contributions together with the proceeds from the notional investments held at the valuation date) was £163,240 million. The assumed real rate of return is 3.5% in excess of prices and 2% in excess of earnings. The rate of real earnings growth is assumed to be 1.5%. The assumed gross rate of return is 6.5%.
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ORLEANS PARK SCHOOL NOTES TO FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 August 2014
14 PENSION AND SIMILAR OBLIGATIONS (CONTINUED)
Employer and employee contribution rates As from 1 January 2007, and as part of the cost-sharing agreement between employers’ and teachers’ representatives, the SCR was assessed at 19.75%, and the supplementary contribution rate was assessed to be 0.75% (to balance assets and liabilities as required by the regulations within 15 years). This resulted in a total contribution rate of 20.5%, which translated into an employee contribution rate of 6.4% and employer contribution rate of 14.1% payable. The cost-sharing agreement also introduced – effective for the first time for the 2008 valuation – a 14% cap on employer contributions payable.
From 1 April 2013 to 31 March 2014, the employee contribution rate ranged between 6.4% and 11.2%, depending on a member’s Full Time Equivalent salary and for 2014/15 will range between 6.4% and 12.4%. Thereafter members will be expected to pay an average contribution rate of 9.6%.
HM Treasury has published the final Directions and the expected outcome of the TPS valuation is a total contribution rate of 26%. The new TPS employer rate will br 16.4% from September 2015. The rate is subject to confirmation following the scheme actuaries valuation report is finalised, and will be payable until the next valuation. The Public Service Pensions Act 2013 provides the legal framework for full actuarial valuations to be carried out every 4 years.
The pension costs paid to TPS in the year amounted to £449,617 (2013: £391,358).
Under the definitions set out in Financial Standards (FRS 17) Retirement Benefits, the TPS is a multi-employer pension scheme. The Academy Trust is unable to identify its share of the underlying assets and liabilities of the scheme.
Accordingly, the Academy Trust has taken the exemption in FRS 17 and 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 and the implications for the Academy Trust in terms of the anticipated rates.
Local Government Pension Scheme
The LGPS is a funded defined-benefit scheme, with the assets held in separate trustee-administered funds. The total contribution made for the year ended 31 August 2014 was £304,000 (2013: £260,000), of which employer’s contributions totalled £245,000 (2013: £208,000) and employees’ contribution totalled £59,000 (2013: £52,000). The agreed rates for future years are 25.6% for employers.
The major assumptions used by the actuary were:
2014 2013 % %
Rate of increase in salaries 3.4 4.1 Rate of increase for pensions in payment 2.6 2.8 Discount rate 3.7 4.6 Inflation (CPI) 2.8 2.9
The current mortality assumptions include sufficient allowance for improvements in mortality rates in the future. The assumed life expectations on retirement at 65 are:
2014 2013 Years Years Retiring today: Males 22.2 20.1 Females 24.4 22.9
Retiring in 20 years Males 24.3 22.0 Females 26.9 24.8
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ORLEANS PARK SCHOOL NOTES TO FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 August 2014
14 PENSION AND SIMILAR OBLIGATIONS (CONTINUED)
The assets in the scheme and the expected rate of return were:
Expected Fair value at Expected Fair value return at 31 31 August return at 31 at August 2014 2014 August 2013 31 August 2013 % £ % £
Equities 6.3 1,599,000 6.6 1,480,000 Bonds 3.5 883,000 4.1 387,000 Property 4.5 248,000 4.7 182,000 Cash 3.3 28,000 3.6 228,000
TOTAL MARKET VALUE OF ASSETS 2,758,000 2,277,000 Present value of scheme liabilities (3,561,000) (2,684,000)
DEFICIT IN THE SCHEME (803,000) (407,000)
The actual return on plan assets was £303,000 (2013: £246,000).
Amounts recognised in the statement of financial activities 2014 2013 £ £
Current service cost (net of employee contribution) 215,000 195,000
Total operating charge 215,000 195,000
Analysis of pension finance income/(costs) 2014 2013 £ £
Interest on pension liabilities 128,000 108,000 Expected return on pension scheme assets (137,000) (90,000)
Pension finance (costs)/income (9,000) 18,000
The actuarial gains and losses for the current year are recognised in the SOFA. The cumulative amount of actuarial gains and losses recognised in the statement of recognised gains and losses since the adoption of FRS 17 is £94,000.
Movements in the present value of defined benefit obligations were as follows: 2014 2013 £ £
At 1 September 2013 2,684,000 2,513,000 Current service cost 215,000 195,000 Interest cost 128,000 108,000 Employee contributions 59,000 52,000 Actuarial loss/(gain) 553,000 (184,000) Benefits paid (78,000) -
At 31 August 2014 3,561,000 2,684,000
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ORLEANS PARK SCHOOL NOTES TO FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 August 2014
14 PENSION AND SIMILAR OBLIGATIONS (CONTINUED)
Movements in the fair value of the Academy Trust’s share of scheme assets: 2014 2013 £ £
At 1 September 2013 2,277,000 1,770,000 Expected return on assets 137,000 90,000 Actuarial gain 118,000 157,000 Employer contributions 245,000 208,000 Employees contributions 59,000 52,000 Benefits paid (78,000) -
At 31 August 2014 2,758,000 2,277,000
The estimated value of employer contributions for the year ended 31 August 2015 is £256,000 (2014: £217,000).
The five-year history of experience adjustments is as follows: 2014 2013 £ £
Present value of defined benefit obligations (3,561,000) (2,684,000) Fair value of share of scheme assets 2,758,000 2,277,000
Deficit in the scheme (803,000) (407,000)
Experience adjustments on share of scheme assets 118,000 157,000
Experience adjustments on scheme liabilities (141,000) -
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ORLEANS PARK SCHOOL NOTES TO FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 August 2014
15 FUNDS
At 1 Incoming Resources Gains, At 31 September resources expended losses August 2013 and 2014 transfers £ £ £ £ £
RESTRICTED GENERAL FUNDS General Annual Grant (GAG) - 5,727,163 (5,727,163) - - LGPS pension reserve (407,000) - 39,000 (435,000) (803,000) Other restricted income fund 213,260 1,427,079 (1,034,119) - 606,220
(193,740) 7,154,242 (6,722,282) (435,000) (196,780)
RESTRICTED FIXED ASSET FUND DfE/EFA capital grants 25,510,185 295,409 (331,354) - 25,474,240
25,510,185 295,409 (331,354) - 25,474,240
TOTAL RESTRICTED FUNDS 25,316,445 7,449,651 (7,053,636) (435,000) 25,277,460
UNRESTRICTED FUNDS General fund 656,819 494,980 (1,151,799) - -
TOTAL FUNDS 25,973,264 7,944,631 (8,205,435) (435,000) 25,277,460
The specific purposes for which the funds are to be applied are as follows:
The General Annual Grant (GAG) represents the core funding for the educational activities of the school that has been provided to the academy via the Education Funding Agency by the Department for Education. The General Annual Grant Fund has been set up because the GAG must be used for the normal running costs of the academy.
The LGPS deficit fund has been created to separately identify the pension deficit inherited from the local authority upon conversion to academy status, and through which all the pension scheme movements are recognised.
The other restricted income fund includes funding for Pupil Premium, LACSEG, Special Educational Needs (SEN) and other similar income that is restricted for use within the Academy’s operations.
The restricted fixed asset fund has been set up to recognise the tangible assets gifted to the Academy from the Local Authority which represent the school site including the freehold and long leasehold land and buildings and all material items of plant and machinery included therein. Depreciation charged on those gifted assets is allocated to the fund.
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ORLEANS PARK SCHOOL NOTES TO FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 August 2014
16 ANALYSIS OF NET ASSETS BETWEEN FUNDS
Unrestricted Restricted Restricted Total funds funds funds fixed asset funds £ £ £ £
Tangible fixed assets - 176,857 25,474,240 25,651,097 Current assets - 802,616 - 802,616 Current liabilities - (373,253) - (373,253) Pension scheme liability - (803,000) - (803,000)
TOTAL NET ASSETS AT 31 AUGUST 2014 - (196,780) 25,474,240 25,277,460
17 ANALYSIS OF CHANGES IN NET FUNDS At 1 Cash flows At 31 September August 2013 2014 £ £ £
Cash in hand and at bank 1,057,778 (550,399) 507,379
1,057,778 (550,399) 507,379
18 MEMBERS’ LIABILITY
Orleans Park School is an exempt charity and a company limited by guarantee, not having share capital. Every member undertakes to contribute an amount not exceeding £10 to the assets of the company in the event of the company being wound up during the year of membership, or within one year thereafter.
19 COMMITMENTS UNDER OPERATING LEASES
At 31 August 2014 the Charitable Company was committed to make the following payments under non-cancellable operating leases as follows: 2014 2013 £ £ Plant and machinery: Expiring within one year 8,572 - Expiring within two and five years inclusive - 8,572
8,572 8,572
20 RELATED PARTY TRANSACTIONS
Owing to the nature of the Academy Trust’s operations and the composition of the board of Governors being drawn from local public and private sector organisations, it is inevitable that transactions will take place with organisations in which a member of the board of Governors may have an interest. All transactions involving such organisations are conducted at arm’s length and in accordance with the Academy Trust’s financial regulations and normal procurement procedures.
No related party transactions took place in the year.
21 POST BALANCE SHEET EVENTS
Subsequent to the balance sheet date the London Borough of Richmond upon Thames has donated a recently constructed sixth form building to the Academy Trust. The value of the new building is £7,759,015 and will be included as a fixed asset in the 31 August 2015 financial statements.
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INDEPENDENT AUDITOR’S REPORT ON REGULARITY TO THE GOVERNING BODY OF ORLEANS PARK SCHOOL AND THE EDUCATION FUNDING AGENCY
In accordance with the terms of our engagement letter dated 23 September 2014 and further to the requirements of the Education Funding Agency (‘EFA’) as included in the Academies Accounts Direction 2013 to 2014, we have carried out an engagement to obtain limited assurance about whether the expenditure disbursed and income received by Orleans Park School Academy Trust during the year 1 September 2013 to 31 August 2014 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 Orleans Park School Academy Trust and the EFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to the Orleans Park School Academy Trust and the EFA those matters we are required to state in a report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Orleans Park School Academy Trust and the EFA, for our work, for this report, or for the conclusion we have formed.
Respective responsibilities of Orleans Park School Academy Trust Limited’s accounting officer and the reporting accountant
The accounting officer is responsible, under the requirements of Orleans Park School Academy Trust’s funding agreement with the Secretary of State for Education dated 20 October 2011 and the Academies Financial Handbook extant from 1 September 2013, for ensuring that expenditure disbursed and income received is applied for the purposes intended by Parliament and the financial transactions conform to the authorities which govern them.
Our responsibilities for this engagement are established in the United Kingdom by our profession’s ethical guidance and are to obtain limited assurance and report in accordance with our engagement letter and the requirements of the Academies Accounts Direction 2013 to 2014. We report to you whether anything has come to our attention in carrying out our work which suggests that in all material respects, expenditure disbursed and income received during the year 1 September 2013 to 31 August 2014 have not been applied to purposes intended by Parliament or that the financial transactions do not conform to the authorities which govern them.
Approach
We conducted our engagement in accordance with the Academies Accounts Direction 2013 to 2014 issued by the EFA. We performed a limited assurance engagement as defined in our engagement letter.
The objective of a limited assurance engagement is to perform such procedures as to obtain information and explanations in order to provide us with sufficient appropriate evidence to express a negative conclusion on regularity. A limited assurance engagement is more limited in scope than a reasonable assurance engagement and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in a reasonable assurance engagement. Accordingly, we do not express a positive opinion.
Our engagement includes examination, on a test basis, of evidence relevant to the regularity and propriety of the academy trust’s income and expenditure.
Our work included identification and assessment of the design and operational effectiveness of the controls, policies and procedures that have been implemented to ensure compliance with the framework of authorities including high level financial control areas and areas assessed of presenting a higher risk of impropriety. We undertook detailed testing, based on our assessment of risk of material irregularity, where such controls, policies and procedures apply to classes of transactions. This work was integrated with our audit on the financial statements to the extent evidence from the conduct of that audit supports the regularity conclusion.
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INDEPENDENT AUDITOR’S REPORT ON REGULARITY TO THE GOVERNING BODY OF ORLEANS PARK SCHOOL AND THE EDUCATION FUNDING AGENCY (CONTINUED)
Conclusion
In the course of our work, nothing has come to our attention which suggests that in all material respects the expenditure disbursed and income received during the year 1 September 2013 to 31 August 2014 has not been applied to purposes intended by Parliament and the financial transactions do not conform to the authorities which govern them.
……………………………. BAKER TILLY UK AUDIT LLP Chartered Accountants Davidson House Forbury Square Reading Berkshire RG1 3EU
2014
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