The Queen Katherine Schoo! Multi Academy Trust
(A Company Limited by Guarantee)
Annual Report and Financial Statements Year Ended 31 August 2014
(Previous Name: The Queen Katherine School Academy Trust)
Company Registration Number: 07 472799 (England & Wales) The Queen Katherine School Multi Academy Trust
Contents Page
Reference and Admin istrative Details L
Trustees' Report 3
Governance Statement 9
Statement on Regularity, Propriety and Compliance L2
Statement of Trustees' Responsibilities 13 lndependent Auditor's Report on the Financial Statements t4 lndependent Accountant's Report on Regularity t6
Statement of Financial Activities lncorporating lncome & Expenditure Account 18
Balance Sheet 19
Cash Flow Statement 20
Notes to the Financial Statements, lncorporating:
Statement of Accounting Policies 2t
Other Notes to the Financial Statements 24 The Queen Katherine School Multi Academy Trust page 1
Reference and Administrative Details
Change of company name On 09 May 2014 the company change its name from The Queen Katherine School Academy Trust to The Queen Katherine School Multi Academy Trust.
Appointed Resigned Trustees who are Members Stephen Pooley *# 3Ll08/2014 Richard Moore (Chairman) *# Suzanne Allen +f t7l09/20L4 Beth Curl *# Peter Townley 031t212013 Stephen Parkman 03/12/20L3
Trustees who are Directors Elizabeth Moffatt 28/O4120L4 John Richardson 28/04120L4 Gareth Roscoe +# 03/12120t3 Stephen Wilkinson (Accounting Officer) *# 03/72120L3 Anne Hallam o3/72120L3 L7lo9l20t4 Heather Dixon *# t7/0612074
Trustees who are not Directors Sylvia Emmott 26ltU2Ot3 Jarrod Collings (Staff Trustee) Martin Butcher 3tl70l2Ot3 Caroline Holden *# Sarah Senior *# Kevin Boles 3110712014 Nicola Penrice (Johnson) t2/0212074 Andrea Aldridge Caroline Metcalfe (Staff Trustee) *# 3L10812074 Alan Bobbett Keith Barber (Staff Trustee) Angela Carradus 0tlo9/2o73 t6107120L4 Anne Blackburn oll09l2Ot3 Robin Young 0L/tol2073 Richard Monks otltol2013 Jo Goode 03/1212073 L3l0sl2OL4 Helen Matthews 0Ll09l20t4 Guy Tirvengadum oLl09l20t4
* members of the Business Finance and Audit committee
# members of the Audit committee
Company Secretary Michael James Walby L3/ttl20L4
Senior Management Team: Executive Head Teacher Stephen Wilkinson Head Teacher Gareth Roscoe Deputy Head Teacher Cathy Earle Deputy Head Teacher Christina Watson Deputy Head Teacher Jane Brierley Vice Principal Allison Chapman The Queen Katherine Schoo! Multi Academy Trust pase2
Reference and Administrative Details (continued)
Principa! and Registered Office The Queen Katherine School Appleby Road Kendal LA9 6PJ
Company Registration Number 07472799 (England & Wales) lndependent Auditor Saint & Co. Chartered Accountants The Old Police Station Church Street Ambleside Cumbria LA22 OBT
Bankers Yorkshire Bank Plc 7 Stricklandgate Kendal Cumbria LAg 4NB
Lloyds Bank Plc 11 Finkle Street Kendal Cumbria LA9 4AG
Solicitors Burnetts 6 Victoria Place Carlisle cA1 1ES The Queen Katherine Schoo! Multi Academy Trust Page 3
Trustees'Report
The trustees present their annual report together with the financial statements and auditor's reports of the charitable company for the year ended 31 August 2014. 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 11 to 18 serving a catchment area in south lakes. lt has a pupil capacity of t44O and had a roll of 1392 in the school census on 15 May 2014.
Structure, Governance and Management
Constitution The academy trust (Multi Academy Trust on 18 February 2014) is a company limited by guarantee and an exempt charity. The charitable company's memorandum and articles of association are the primary governing documents of the academy trust. The trustees of The Queen Katherine Multi School Academy Trust Limited are also the directors of the charitable company for the purposes of company law. The charitable company is known as The Queen Katherine School Multi Academy Trust.
Details of the trustees who served during the year are included in the Reference and Administrative Details on page 1.
Members' tiability 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 f 10, for the debts and liabilities contracted before they ceased to be a member.
Principal Activities The principal activity of the academy trust is 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.
Trustee's lndemnities The Academy has purchased indemnity insurance to protect trustees and officers from claims arising in connection with Academy business.
Method of Recruitment and Appointment or Election of Trustees The trustees are appointed under the terms of the academy's articles of association as follows: . The members may appoint up to 30 trustees r I minimum of two Local Parent trustees . up to 1 LA trustee . Number of staff trustees does not exceed one third of the total number of trustees . Any Trustees elected by the Secretary of State for Education . Number of co-opted trustees does not exceed one third of the total number of trustees
The term of office for all trustees, except the Executive Head Teacher and Head Teacher, is four years. The Executive Head Teacher and Head Teacher's term of office runs parallel with their contracts of employment. The trustees who were in office and who served throughout the period, are listed on the reference and administrative details.
Policies and Procedures Adopted for the lnduction and Training of Trustees. The training and induction provided for new trustees will depend on their existing experience. Where necessary an induction will provide training on charity and educational legal and financial matters. All new trustees are given a tour of the academy and the chance to meet with staff and students. All trustees are provided with copies of policies, procedures, minutes, accounts, budgets, plans and other documents that they will need to undertake their role as trustees and directors of the charitable company. As there is normally expected to be only a small number of new trustees each year, induction tends to be done informally and is tailored specifically to the individual. The Queen Katherine School Multi Academy Trust Page 4
Trustees' Report (continued )
Organisational Structure As specified in the memorandum of association, the trustees are responsible for setting general policy, adapting an annual plan and budget, monitoring the academy by the use of budgets and making major decisions about the direction of the academy, and senior staff appointments. The trustees are responsible for the monitoring and performance of the Executive Head Teacher, Head Teacher and senior management team on a regular basis.
The senior management team members for the academy are the Executive Head Teacher, Head Teacher, three Deputy Head Teachers, one Vice Head Teacher and the Business Support & Development Manager. These managers control the academy at an executive level implementing the policies laid down by the trustees and reporting back to them. As a group the senior management team are responsible for the authorisation of spending within agreed budgets and the appointment of staff, through appointment boards for posts in the senior management team always contain a trustee. Some spending control is devolved to members of the management team, with limits above which a senior manager must countersign.
Connected Organisations, including Related Party Relationships
The South Lakes Federation The South Lakes Federation is made up of eight secondary schools, Kendal College and a special school within the South Lakes area. There is close collaboration between all the schools within the Federation providing an opportunity for curriculum enrichment, access for students to vocational courses and support for Gifted and Talented students.
Kendal Collaborative Partnership The Kendal Collaborative Partnership is made up of all 17 schools in total from Kendal primary schools, Kendal Nursery, Sandgate and two Kendal secondary schools. The joint vision of working together to enhance the educational opportunities and experience of young people by furthering high quality school improvemenU raising achievement and access for all; and driving high aspirations through continuous professional development.
QKS Meadowview Nurserv Limited QKS Meadowview is a wholly owned subsidiary of the academy. The Queen Katherine School Academy Trust rents a standalone single storey building to QKS Meadowview Nursery Limited, located adjacent to the school grounds. QKS Meadowview Nursery Limited provides a nursery provision to three to five year olds. QKS Meadowview Nursery Limited manages and runs a small nursery in the Kendal area called Stramongate Nursery.
Objectives and Activities
Obiects and Aims The principle activity of the academy trust is 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 schools (the mainstream academies) offering a broad and balanced curriculum.
The aim of the academy is to provide education for pupils of different abilities between the ages of 11 and 18. ln accordance with the articles of association the charitable company has adopted a "scheme of Government" approved by the Secretary of State for Education. The Scheme of Government specifies, amongst other things, the basis for admitting students to the academy, the catchment area from which the students are drawn, and that the curriculum should comply with the substance of the national curriculum. The Queen Katherine School Multi Academy Trust Page 5
Trustees' Report (continued)
Objectives, Strategies and Activities The main objectives of the academy during the year ended 31 August 2Ot4 are summarised below: . to ensure that every child enjoys the same high quality education in terms of resourcing, tuition and care; o to raise the standard of educational achievement of all pupils; . to improve the effectiveness of the academy by keeping the curriculum and organisational structure under continual review; . to provide value for money for the funds expended; . to comply with all appropriate statutory and curriculum requirements; . to malntain close links with industry and commerce; and . to conduct the academy's business in accordance with the highest standards of integrity, probity and openness.
The Queen Katherine School Multi Academy Trust aims to develop individuals to achieve their full potential. As an academy, it provides education of the highest quality on a well-resourced campus. Relationships are constructive, with individuals being valued, nurtured and supported.
This is achieved through developing: . a trusting, open, caring, inclusive friendly and structured atmosphere with comfortable relationships, clear expectations and with every individual valued; expectations and with every individual valued. . a focus on learning, guidance and monitoring for all students and staff, both inside and outside the classroom; r showing commitment in our work, desire to learn, hard work, a spirit of enquiry and creativity, initiative.
The curriculum offered is distinctive and personalised.
At key stage 3 we have a major focus on ensuring that all students develop core English, mathematics, science and ICT skills and the personal, learning and thinking skills to equip them with the competence and confidence to pursue both academic and vocational pathways in the future.
We focus on the development of vocational and work related education.
All students, at any age, are able to access the most appropriate provision offered in the academy to suit their particular interests and needs.
The academy enables a common approach to be taken to values and principles, standards, utilisation of management expertise, use of resources, and to the creation of a broad and rich opportunity for young people to achieve their maximum potential.
The academy also provides enriched provision and integrated services for children and young people in the area, including comprehensive extended services, and enable a wide range of services and facilities to be made available to the community which supports and complements the local authority's children's services vision.
Public Benefit ln setting the objectives, the trustees have given careful consideration to the Charity Commission's general guidance on public benefit and in particular to its supplementary public benefit guidance on advancing education.
The objective of the academy is 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 Queen Katherine School Multi Academy Trust Page 6
Trustees' Report (continued)
Strategic Report
Achievements and Performance The Queen Katherine School Academy is now in its fourth year of operation, with the MAT being created in February 2014. Student numbers are stronS, bearing in mind the local context of falling rolls, with till buoyant with 1369 students currently on roll. Our performance in examinations remains high with 2014 seeing an increase of 4Y" on the previous years headline figures. English results bounced backfrom our disappointment of the previous yearwith a pass rate of 77o/o for language and97%for Literature. At advanced level, we maintained our usual high standards with an A level pass rate of 99.8%, of which 8!o/o of grades were C or above and an incredlble 25% were graded A or A*. lt is also of note that all our year 11 students progress onto education, employment or training. ln our sixth form over 50% of students' progress onto Russell Group universities.
The work of the teaching school was recognised by a successful first review. The teaching school also co-ordinated a successful SCITT bid on behalf of the two other teaching schools in the local area. The first cohort of SCITT trainees will be recruited for teaching in September 2015. The first cohort of school direct trainees successfully completed their course and all found employment in the local area. The formation of the Multi academy Trust and the sponsorship of Walney school was also a success for the both schools after the work involved in the creation of the MAT and the formal sponsorship of Walney.
Key Financial Performance lndicators
Staffine costs as a % of total income (excludine capital income)
20L4 2013 2012 Ieaching and educational support staff costs 64.8% 60.901 62.3% Support staff costs 728% L2.301 !2.0o/o Iotal 77.6% 73.201 74.30A
Teachins Staff
2014 20L3 2072 Pupils on roll L392 L397 1423 Full time equivalents teachers 81 82 79 Pupil teacher ratio t7.z 77.Q 18.0
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 adopts 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.
FinancialReview The Queen Katherine School Multi Academy Trust financial statements are for the year ended 31 August 2014.
The majority of the academy's income is obtained from the Education Funding Authority (EFA) in the form of grants, the use of which is restricted to particular purposes. The grants received from the EFA during the year ended 31 August 2014 and the related expenditure are shown as restricted funds in the statement of financial activities.
Under the Financial Reporting Standard 17, it is necessary to charge projected deficits on the Local Government pension Scheme, which is provided to support staff, to a restricted fund. This results in reducing reserves shown in the total funds of the academy. lt should be noted that this does not present the academy with any current liquidity problem. The employer contributions are currently being assessed and it is expected that they will increase to bring a reduction in this pension deficit in future, although this may not be achieved until stock market investment values start to recover. The current percentages used to calculate contributions will not change before April 2014. The Queen Katherine Schoo! MultiAcademy Trust PageT
Trustees' Report (continued)
Financial Review (Continued) Most of the School's income is obtained from the DfE in the form of recurrent grants, the use of which is restricted to particular purposes. The grants received from the DfE during the period ended 31 August 2014 and the associated expenditure are shown as restricted funds in the statement of financial activities.
During the period ended 31 August 2014, total general expenditure of f8,359,544 this was covered by recurrent grant funding from the DfE together with other incoming resources and reserves brought forward. The excess of general expenditure over income for the year was f279,282.
At 31 August 2014 the net book value of fixed assets was f9,272,326 and movements in tangible fixed assets are shown in note 16 to the financial statements. The assets were used exclusively for providing education and the associated support services to the pupils of the Academv.
Reserves Policy The level of reserves held takes into account the nature of income and expenditure streams, the need to match them with commitments, including future capital projects, and the nature of the reserves. The trustees will keep the level of reserves under review.
The general unrestricted fund balance was f732,9LG (2OL3: f173,003) at the year end. The trustees believe that this level of reseryes is required to support the running of the school during an anticipated reduction in funding.
The designated all weather pitch fund balance was f 149,433 (2013: f 141,864) at the year end, this fund is for the replacement of the all weather pitch.
The designated pension deficit set aside fund balance was f80,000 (2013: f80,000) at the year end, the trustees have agreed that this is a prudent approach at this time. There is a consultation being undertaken by the DfE, which may result in the 'pooling' of all pension funds under the Cumbria LA.
Funds in Deficit Pension Reserve Fund - this fund represents the deficit on the Local Government Pension Scheme (LGPS) at the year end. lnvestment Policy Reserves are currently held in an instant access account with the academy trust's bankers.
Principal Risks and Uncertainties The trustees have assessed the major risks to which the academy is exposed, in particular those relating to the specific teaching, provision of facilities and other operational areas of the academy, and its finances. The trustees have implemented a number of systems to assess risks that the school faces, especially in the operational areas (e.g. in relation to teaching, health and safety, bullying and school trips) and in relation to the control of finance. They have introduced systems, including operational procedures (e.g. vetting of new staff and visitors, supervision of school grounds) and internal financial controls (see below) in order to minimise risk. Where significant financial risk still remains they have ensured they have adequate insurance cover. The academy has an effective system of internal financial controls and this is explained in more detail in the statement on internal control.
Financial and Risk Manatement Objectives and Policies A budget for the period was agreed prior to the beginning of the accounting period. Management accounts were presented at each quarterly Business, Finance and Audit Trustee Committee meeting and income and expenditure monitored against budget. All the academy's financial manual, policies, systems and controls are disclosed in the academy's Financial Regulations Manual.
Principa! Funding Sources The majority of the academy's income is obtained from the Education Funding Authority (EFA) and the Local Authority in the form of grants, the use of which is restricted to particular purposes. The Queen Katherine School Multi Academy Trust Page 8
Trustees' Report (continued)
PIans for Future Periods As mentioned earlier, the SCITT will aim to recruit the first cohort of secondary trainees in time for September 2015. This new model of teacher training will provide the next generation of teachers for QKS and the local area.
The school development plan links the focus of work back into QKS with a priority of student attainment and continuing to narrow the gap for disadvantaged students. A review of the curriculum will be undertaken during 2OL4h5 to ensure that this is fit for purpose and matches the changes made to recent performance measures and examination specifications.
Within The Queen Katherine School Academy Trust we aim to continue with our campus refurbishment project. By the end of 2015 we hope to have completed the internal refurbishment of many areas of the school to enhance the learning environment for staff and students. lt is our intention to bid for Academies Capital Maintenance funding to redevelop Science and pE provision to provide a first class learning environment for these vital curriculum areas.
The trustees also hope to realise their ambition of extending the successful co-location of Sandgate School by providing space for accommodation for their Key Stage 3 provision.
Multi academvTrust The Queen Katherine School became a Multi Academy Trust (MAT) on 18 February 2Ot4, sponsoring our first academy on OL September 2014, Walney School. The MAT is a structure in order to sponsor other schools, sharing knowledge, resources, achieving economies of scale. Currently, we will Buarantee as much autonomy to our two schools as possible to allow us to concentrate on the quality of education in each school.
Auditor lnsofar as the trustees are aware: . there is no relevant audit information of which the charitable company's auditor is unaware: and o the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
The Trustees' report, incorporating a strategic report, was approved by order of the members of the board of trustees on 0g December 2014 and signed on its behalf by: The Queen Katherine School MultiAcademy Trust Page 9
Governance Statement
Scope of Responsibility As trustees we acknowledge that we have overall responsibility for ensuring that The Queen Katherine School Multi Academy Trust has an effective and appropriate system of control, financial and otherwise. However such a system is designed to manaBe rather than eliminate the risk of failure to achieve business objectives, and can provide only reasonable and not absolute assurance against material misstatement or loss.
The board of trustees has delegated the day-to-day responsibility to the Executive Head Teacher, 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 The Queen Katherine School Academy Trust and the Secretary of State for Education. They are also responsible for reporting to the board of trustees any material weaknesses or breakdowns in internal control.
Governance The information on governance included here supplements that described in the Trustees' Report and in the Statement of Trustees' Responsibilities. The board of trustees has formally met 5 times during the year. Attendance during the year at meetings of the board of trustees was as follows:
Trustee Meetings attended Out of a possible Stephen Pooley 5 6 Stephen Wilkinson (Executive Head Teacher) 5 6 Beth Curl 6 6 Richard Moore (Chairman) 6 6 Suzanne Allen 5 6 Sylvia Emmott (Resigned 261 Ll^lzOL3l 2 2 Jarrod Collings (Staff Trustee) 5 6 Peter Townley 5 6 Steve Parkman 3 6 Martin Butcher (resigned 3LhOl2Ot3) 0 1 Caroline Holden 5 6 Sarah Senior 4 6 Kevin Boles (Resigned 3110712074) 2 5 N icola Penrice (Joh nson) ( Resigned LZ I OZ I 2OL4l 0 3 Andrea Aldridge 5 5 Carolyn Metcalfe (Staff Trustee) 6 6 Alan Bobbett 5 6 Keith Barber (Staff Trustee) 5 6 Heather Dixon (Appointed 01/09/2013) 4 6 Angela Carradus (Resigned 161 07 l20t4l 4 6 Anne Blackburn (Appointed 0U 09 120131 5 6 Robin Young (Appointed 0t/ tC.l 20L3) 5 5 Richard Monks (Appointed otl10/2013) 5 5 Gareth Roscoe (Appointed 03 I L2l 20L3) 4 4 Jo Goode (Appointed O3lL2/13, Resigned t3l05/L4ll 0 3 Anne Hallam (Appointed O3h2/20L3) 0 4
During the period to 31 August 2014 thirteen new trustees were appointed, and eight trustees resigned from their posts. newandcurrenttrusteesbringawealthofexperiencefromindustry,furthereducationand internationaleducation. The Queen Katherine Schoo! MultiAcademy Trust Page 10
Governance Statement (continued)
From the 18 February the MAT Board of trustees met 5 times. Attendance during the year at meetings of the MAT Board of trustees was as follows:
Trustee Meetings attended Out of a possible Stephen Pooley 0 5 Stephen Wilkinson (Executive Head Teacher) 4 5 Beth Curl 5 5 Richard Moore (Chairman) 5 5 Suzanne Allen 5 5 Jarrod Collings (Staff Trustee) 3 5 Peter Townley 4 5 Steve Parkman 4 5 Alan Bobbett 1 5 Heather Dixon 1 5 Gareth Roscoe (Head Teacher QKS) 5 5 Jo Goode (Resigned L3l05l20t4) 0 3 Anne Hallam 0 5 Elizabeth Moffatt (Appointed 28/0412oL4) 3 3 John Richardson (Head Teacher Walney School) 2 3
The Business, Finance and Audit Committee is a sub-committee of the main board of trustees. lts purpose is to assist the decision making of the board of trustees by ensuring sound management of the academy's finances and resources, including proper planning, monitoring and probity. Attendance at meetings in the year was as follows:
Trustee Meetings attended Out of a possible Stephen Wilkinson (Executive Head Teacher) 3 6 Richard Moore (Chair Business & Finance) 5 6 Sarah Senior (Chair of Audit) 4 6 Stephen Pooley 3 6 Carolyn Metcalfe (Staff Trustee) 3 6 Suzanne Allen 4 6 Beth Curl 4 6 Heather Dixon 5 5 Gareth Roscoe 4 4
The Purpose of the System of lnterna! Control The board of trustees have reviewed the key risks to which the academy trust is exposed together with the operating, financial and compliance controls that have been implemented to mitigate those risks. The board of trustees are aware of the ongoing process for identifying, evaluating and managing the academy's significant risks which has been undertaken by responsible officer, management, trustees' committee meetings, and external auditors for the period 1 September 2013 to 31 August 2014 and up to the date of approval of the annual report and financial statements. The academy has recently compiled a risk register, this is a document reviews 5 key risk areas which are being rolled out to each committee for review. The document will be reviewed regularly with an annual update to the full governing board.
Capacity to Handle Risk The board of trustees have reviewed the key risks to which the academy trust is exposed together with the operating, financial and compliance controls that have been implemented to mitigate those risks. The board of trustees is of the view that there is a formal on-going process for identifying, evaluating and managing the academy's significant risks that has been in place for the period 1 September 2013 to 31 August 2014 and up to the date of approval of the annual report and financial statements. This process is regularly reviewed by the board of trustees. The Queen Katherine School Multi Academy Trust Page 11
Governance Statement (continued)
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. ln particular, it includes: . comprehensive budgeting and monitoring systems with an annual budget and periodic financial reports which are reviewed and agreed by the board oftrustees; . regular reviews by the Business, Finance and Audit Committee of reports which indicate financial performance against the forecasts and of major purchase plans, capital works and expenditure programmes; o 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 board oftrustees has considered the need for a specific internal audit function and has decided: o ttot to appoint an internal auditor. However the trustees have appointed Stables Thompson & Briscoe as Responsible Officer.
The Responsible Officer's role includes giving advice on financial matters and performing a range of checks on the academy trust's financial systems. On a quarterly basis the Responsible Officer reports to the board of trustees on the operation of the systems of control and on the discharge of the board of trustees' financial responsibilities.
We confirm that the Responsible Officer has delivered their schedule of work as planned.
Review of Effectiveness As Accounting Officer, the executive head has responsibility for reviewing the effectiveness of the system of internal control. During the year in question the review has been informed by: r 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 Business, Finance and Audit Committee and a plan to address weaknesses and ensure continuous improvement of the systems is in place.
Approved by order of the members of the board of trustees on 08 December 2Ot4 and signed on its behalf by:
Stephen Wilkinson Accounting Officer The Queen Katherine School Multi Academy Trust Page 12
Statement on Regularity, Propriety and Compliance
As Accounting Officer of The Queen Katherine School Multi Academy Trust I have considered my responsibility to notify the academy trusts Soverning body and the Education Funding Agenry of material irregularity, impropriety and non-compliance with Education Funding Agency terms and conditions of funding, under the funding agreement in place between the academy trust and the Secretary of State. As part of my consideration I have had due regard to the requirements of the Academies Financial Handbook.
I confirm that I and the academy trust board of trustees are able to identify any material irregular or improper use of funds by the academy trust, or material non-compliance with the terms and conditions of funding under the academy trust's funding agreement and the Academies Financial Handbook.
I confirm that no instances of material irregularity, impropriety or funding non-compliance have been discovered to date. lf any instances are identified after the date of this statement, these will be notified to the board of trustees and EFA.
Stephen Wilkinson Accounting Officer The Queen Katherine School MultiAcademy Trust Page 13
Statement of Trustees' Responsibilities
The trustees (who act as governors of The Queen Katherine School Multi Academy Trust and are also the directors of the charitable company for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with the Annual Accounts Direction issued by the Education Funding Agency, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. ln preparing these financial statements, the trustees are required to: a select suitable accounting policies and then apply them consistently; a observe the methods and principles in the Charities SORP; o make judgements and accounting estimates that are reasonable and prudent; o 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 goin8 concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for ensuring that in its conduct and operation the charitable company applies financial and other controls, which conform with the requirements both of propriety and of good financial management. They are also responsible for ensuring grants received from the EFAIDJE have been applied for the purposes intended.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Approved by order of the members of the board of trustees on 08 December 2014 and signed on its behalf by:
Stephen Wilkinson Chair of Trustees Accounting Officer The Queen Katherine School MultiAcademy Trust page 14 lndependent Auditor's Report on the Financial Statements to the Board of Trustees of The Queen Katherine School Multi Academy Trust
We have audited the financial statements of The Queen Katherine School Multi Academy Trust for the year ended 31 August 2014 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the company's members, as a body, in accordance with sections 495 and 496 of the Companies Act 2005. Our audit work has been undertaken so that we might state to the 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 company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective Responsibilities of Trustees and Auditors As explained more fully in the Trustees' Responsibilities Statement, the trustees (who are also the directors of The eueen Katherine School multi Academy Trust 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 lnternational 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 ApB's website at www.frc.org. u k/aud itscopeukprivate.
Opinion on Financial Statements ln our opinion the financial statements:
. give a true and fair view of the state of the academy's affairs at 31st August 2014 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
o the financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
. the financial statements have been prepared in accordance with the Companies Act 2006;
r have been prepared in accordance with the Academies Accounts Direction 2013 to 2014 issued by the EFA.
OPINION ON OTHER MATTER PRESCRIBED BY THE COMPANIES ACT 2006 ln our opinion the information given in the Trustees' Annual Report (which includes the strategic report and the directors report) for the financial year for which the financial statements are prepared is consistent with the financial statements. The Queen Katherine Schoo! MultiAcademy Trust page ls lndependent Auditor's Report on the Financial Statements to the Board of Trustees of The Queen Katherine School Multi Academy Trust (continued)
MATTERS ON WH|CH WE ARE REQUTRED 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:
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 financial statements are not in agreement with the accounting records and returns; or
certain disclosures of trustees' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
lan Thompson (Senior Statutory Auditor)
For and on behalf of
Saint & Co Chartered Accountants & Statutory Auditors The Old Police Station Church Street Ambleside Cumbria LA22 OBT
Date The Queen Katherine School MultiAcademy Trust Page 16 lndependent Reporting Accountant's Assurance Report on Regularity to The Queen Katherine School Multi Academy Trust and the Education Funding Atency ln accordance with the terms of our engagement letter dated 16 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 The eueen Katherine School Multi Academy Trust during the period 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 The Queen Katherine School Multi 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 Queen Katherine School Multi 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 Queen Katherine School Multi Academy Trust and the EFA, for our work, for this report, or for the conclusion we have formed.
Respective Responsibilities of The Queen Katherine School Multi Academy Trust's Accounting Officer and the Reporting Accountant
The Accounting Officer is responsible, under the requirement of The Queen Katherine School Multi Academy Trust's funding agreement with the Secretary of State for Education dated 18 February 2014 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 period 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. The Queen Katherine School Multi Academy Trust Page L7 lndependent Reporting Accountant's Assurance Report on Regularity to The Queen Katherine School Multa Academy Trust and the Education Funding Agency (continued)
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:
a the Financial Management & Governance Evaluation (FMGE) was obtained and the EFA evaluation considered; o having a general awareness of regularity and propriety whilst conducting the statutory audit function; a reviewing if extra-contractual payments for staff have been made in accordance with the Handbook; o reviewing if borrowing agreements, including leases to ensure they have been made in accordance with the Handbook; a reviewing the minutes of the meeting of the main committees during the year; a reviewing expenditure to check that it was not ultra vires to the charitable objectives; a obtaining trustee / governors declaration of interests.
Conclusion ln 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 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.
la n Thompson (Reporting Accountant)
For and on behalf of
Saint & Co Chartered Accountants & Statutory Auditors The Old Police Station Church Street Ambleside Cumbria LA22 OBT
Date The Queen Katherine School Multi Academy Trust Page 18
Statement of Financial Activities for the Year Ended 31 August 2014
(lncluding lncome and Expenditure Account and Statement of Total Recognised Gains and Losses)
Unrestricted Restristed Restricted Total Total Funds General Fixed Asset 20t4 20t3 Funds Funds Note f f € E lncoming resources I ncomi ng resources from generoted funds: - Voluntary income 2 - 23,426 - 23,426 t,527,646 - Activities for generating funds 3 447,474 - 447,474 364,470 - lnvestment income 4 2,66s - 2,665 2,758 lncoming resou rces from cho ritoble octivities: - Funding for the Academy 's educational 7,193,652 27,524 7,221,L76 8,397,32L operations - other income 6 2L,479 391,666 _ qtt,tl,s 368,824 Total incoming resources 47L,618 7,608,744 27,524 I,L07,886 J9.qqp19_
Resources expended Costs of generoting funds: - Cost of generating voluntary income - Activities for generating funds 8 3s0,s37 - ,ro,uri 301,9L2 Cha rita ble octivities: - Academy's educational operations 9 19,883 7,904,433 568,848 9,493,L64 8,6L2,43L Governonce costs 10 - 84,791 _ 84,791 99,s82 Total resources expended 7 370,420 7,989,224 568,849 8,928,492 9,013,92s Net incoming / (outgoing) resources before transfers 101,198 (380,480) (s4L,324) (820,606) L,647,O94 Gross transfers between funds 73,20 (8s,687) 1L0s,442) t9L,L29 Net income/(expenditure) for the year 1s,s11 1485,9221 (350,195) (820,606) t,647,O94
Other recognised gains and losses Actuarial (losses) gains on defined benefit pension schemes L9,24 (34s,000) (34s.000) - 84,000 Net movement in funds 15,511 (830,922) (350,195) (1,165,606) L,73L,094
Reconciliation of funds
Funds brought forward to 1 September 2013 19 994,867 (829,643) 9,622,s2L 9,787,745 8,056,651 Fund balances carried forward at 31 August 2014 r,0t0,378 (1,660,s6s) 9,272,326 8.622.L39 _9,131-4_
All of the academy's activities derive from continuing operations during the above two financial periods.
A Statement of Total Recognised Gains and Losses is not required as all gains and losses are included in the Statement of Financial Activities. The Queen Katherine Schoo! Multi Academy Trust Page 19
Balance Sheet as at 31 August 2014 Company Number 07 472799
20L4 20L4 20L3 2013 Notes f e E f Fixed assets Tangible assets 16 9,272,326 9,622,527
Current assets Stock t7 1,524 1,516 Debtors 18 24r,843 276,922 Cash at bank and in hand 2,029,767 2,196,874 2,273,L34 2,475,252 Liabilities Creditors: Amount falling due within one year 19 1,O82,32L 819,028 Net current assets 1,190,813 L,596,224
Total assets less current liabilities 10,463,139 7]-,278,745
Pension scheme liability 25 (1,841,000) (1,431,000)
Net Assets including pension liability 8,622,739 9,787,745
Funds of the academy trust: Restricted income funds Fixed asset funds 20 9,272,326 9,622,521 General funds 20 180,435 60L,357 Pension reserve 20,2s (1,841,000) (1,431,000) Total restricted funds 20 7,6t1,76L 8,792,878
Unrestricted income funds General fund 20 1,010,378 994,867 Total unrestricted funds 1,010,378 994,867
Total funds 8,622,L39 9,787,745
The financial statements were approved by the trustees, and authorised for issue on 08 December 2OL4 and signed on their behalf by:
Stephen Wilkinson AccountinS Officer The Queen Katherine Schoo! MultiAcademy Trust Page2O
Cash Flow Statement for the Year Ended 31 August 2014
20L4 2013 Reconciliation of net income to net cash inflow from operating activities € f,
Net incoming resources before transfers (820,606) 1,647,094 lnterest receivable 12,66sl 12,7s8) Depreciation 531,0s7 s05,738 Asset cost disposed of during year 49,340 Accumulated depreciation on disposed assets (11,549) Assets transferred from predecessor school - Transfer (note 15) 222,s43 Assets transferred from predecessor school - Additional (note 16) L4,467 Capital grants from DfE and other capital income (27,s24) (889,044) Decrease/(lncrease) lncrease in stocks (8) 230 Decrease/(lncrease) in debtors 124,92t) r23,757) lncrease/( Decrease) in creditors 263,293 75,595 FR517 net pension finance costs 47,000 54,000 FRS17 pension costs less contributions payable 18,000 23,000 Net cash inflow from operating activities 2t,4L7 7,627,L08
Capital expenditure and financial investment Assets transferred from predecessor school - Transfer (note 16) (t,629,748l Assets transferred from predecessor school - Additional (note 16) (109,267) Capital grants from DfE and other capital income 27,524 889,044 Payments to acquire tangible fixed assets (218,6s3) (462,9091 Net cash outflow from capital expenditure and financial investment $91,L291 (1,312,880)
Returns on investments and servicing of finance lnterest received 2,665 2,758 Net cash inflow from returns on investments and servicing of finance 2,665 2,758
(Decrease) / increase in cash in the year @ 316,995
Reconciliation of net cash flow to movement in net funds
(Decrease) / increase in cash in the period (767,047) 316,986 Change in net funds - (167,047) 316,996
Net funds at 1 September 2013 2,196,814 1,879,929
Net funds at 31 August 2014 2,O29,767 2,196,814
Analysis of changes in net funds 1 Sep 13 Cashflows 31 Aug 14 f f f Cash in hand and at bank 2,t96,814 (767,0471 2,029,767 2,L96,814 (L67,O47) 2,029,767 The Queen Katherine School Multi Academy Trust Page 21
Notes to the Financial Statements for the Year Ended 31 August 2014
1. Statement of 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 Charity Commission 'Statement of Recommended Practice: Accounting and Reporting by Charities' ('SORP 2005'), the Academies Accounts Direction 2013 to 2014 issued by the EFA and the Companies Act 2005. A Summary of the principal accounting policies, which have been applied consistently, except where noted, is set out below.
Consolidation The accounts present the information about the company as an individual undertaking and not about its group. See related party note for the grounds on which the academy is not preparing group financial statements.
Going Concern The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the company to continue as a going concern. The trustees make this assessment in respect of a period of one year from the date of approval of the financial statements,
lncoming Resources All incoming resources are recognised when the academy trust has entitlement to the funds, certainty of receipt and the amount can be measured with sufficient reliability.
. Grants Receivable Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the balance sheet. Where income is received in advance of entitlement of receipt its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Capital grants are recognised when receivable and are not deferred over the life of the asset which they are expended. Unspent amounts of capital grants are reflected in the balance in the restricted fixed asset fund.
The General Annual Grant (GAG) from the Educational Funding Agency is credited directly to the accounts on a receivable basis. Other government grants are also recognised on a receivable basis. For all grants the balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the balance sheet.
o Donations Donations are recognised on a receivable basis where there is certainty of receipt and the amount can be reliably measured.
. Other lncome Other income, including the hire of facilities, is recognised in the period it is receivable and to the extent the goods have been provided or on completion of the service.
o Donated Services and Gifts in Kind The value of donated services and gifts in kind provided to the academy trust are recognised at their open market value in the period in which they are receivable as incoming resources, where the benefit to the academy trust can be reliably measured. An equivalent amount is included as expenditure under the relevant heading in the Statement of Financial Activities, except where the gift in kind was a fixed asset in which case the amount is included in the appropriate fixed asset category and depreciated over the useful economic life in accordance with academy trust's policies.
Deferred lncome Grants and other funding received for the academy's educational activities for a period spanning the year end are deferred pro-rata to the relevant periods in order to match the funding to the period in which the costs of charitable activities are incurred. The Queen Katherine Schoo! Multi Academy Trust Page22
Notes to the Financial Statements for the Year Ended 31 August 2014 (continued)
1. Statement of Accounting Policies (Continued)
Resources Expended All expenditure is recognised in the period in which a liability is incurred and has been classified under headings that aggregate all costs related to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent. Other support costs are allocated based on the spread of staff costs.
. Costs ofGenerating Funds These are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.
. CharitableActivities These are costs incurred on the academy trust's educational operations.
o Governance Costs These include the costs attributable to the academy trust's compliance with constitutional and statutory requirements, including audit, strategic management and Trustee's meetings and reimbursed expenses.
All resources expended are exclusive of irrecoverable VAT, which is posted as a separate cost.
Fixed Assets Assets costing t2,000 or more (multiple assets not included if individual assets are under f500) are capitalised as tangible fixed assets and are carried at cost, net of depreciation and any provision for impairment.
Where tangible fixed assets have been acquired with the aid of specific grants, either from the government or from the private sector, they are included in the Balance Sheet at cost and depreciated over their expected useful economic life. The related grants are credited to a restricted fixed asset fund in the Statement of Financial Activities and carried forward in the Balance Sheet. Depreciation on such assets is charged to the restricted fixed asset fund in the Statement of Financial Activities so as to reduce the fund over the useful economic life of the related asset on a basis consistent with the academy trust's depreciation policy.
Depreciation Depreciation is provided on all tangible fixed assets other than freehold land, at rates calculated to write off the cost of each asset over its expected useful economic life as follows:
Freehold buildings - straight line over the estimated economic life (8 to 50 years) Plant and machinery - straight line over the estimated economic life (15 years) Furniture and equipment - straight line over 10 years ICT equipment - straight line over 4 years
Assets in the course of construction are included at cost depreciation on these assets is not charged until they are brought into use.
Assets purchased during the year are depreciated from the date they are brought into use. The depreciation is time apportioned.
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. lmpairment losses are recognised in the Statement of Financial Activities.
Operating Lease Agreements Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.
Stock Unsold uniforms and catering stocks are valued at the lower of cost or net realisable value. The Queen Katherine School MultiAcademy Trust Page 23
Notes to the Financia! Statements for the Year Ended 31 August 2014 (continued) x.. Statement of Accounting Policies (Continued)
Taxation The academy trust is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2O1O and therefore it meets the definition of a charitable company for UK taxation 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 t992, to the extent that such income or gains are applied exclusively to charitable purposes.
Pensions Benefits Retirement benefits to employees of the academy trust are provided by the Teachers' Pension Scheme ('TPS') and the Local Government Pension Scheme ('LGPS'). These are defined benefit schemes, and the assets are held separately from those of the academy trust.
The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees' working lives with the academy trust in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quinquennial valuations using a prospective benefit method. As stated in the notes, 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. lf the benefits have not vested immediately, the costs are recognised over the period until vesting occurs. The expected return on assets and the interest cost are shown as a net finance amount of other finance costs or credits adjacent to interest. Actuarial gains and losses are recognised immediately in other gains and losses.
Fund Accounting Unrestricted funds reflect those resources which may be used towards meeting any of the objects of the academy at the discretion of the trustees.
Unrestricted designated funds consist of amounts allocated or designated for specific purposes. The use of designated funds for their designated purpose will remain at the discretion of the trustees.
Restricted fixed asset funds reflect the fixed assets and capital grants for the purchase of fixed assets to be used for charitable purposes.
Restricted general funds comprise grants, including the General Annual Grant (GAG), and other funding for educational purposes and any voluntary income to be used for specific purposes.
The Local Government Pension Scheme deficit is recognised against restricted general funds in order to match it against the GAG, in accordance with EFA guidance.
Details of restricted and unrestricted funds are shown in the notes to the financial statements. The Queen Katherine School Multi Academy Trust Page24
Notes to the Financial Statements for the Year Ended 3l August 2014 (continued)
2. Voluntary lncome Unrestricted Restricted Total Total Funds Funds 20L4 2013 € C f f Donations - QKS Meadowview Nursery Limited 18,000 Other donations 9,301 9,301 7,641 Gift in kind L4,125 t4,125- Assets transferred from predecessor school (note 15) 1,s02,005 21426 23A26 L,527,,646
3. Activities for Generating Funds Unrestricted Restricted 20L4 2013 Funds Funds Tota! Tota! f f ff Lettings, room and All Weather Pitch (AWP) hire 81pM 87,944 87,637 Catering income 263,288 263,288 231,905 Service provision 31,996 31,896 24,7L7 Teaching School - Lettings 4,349 4,349 Teaching School - CCC 30,000 30,000 Teaching School 35,997_ 35,997 School improvement support 447,474 __ ]47,474 364,470
4. lnvestment lncome Unrestricted Restricted 20L4 2013 Funds Funds Total Total € € f. Bank interest receivable 2,655 : 2,66s 2,758 2,665 2,665 2,758
5. Funding for Academy's educational operations Unrestricted Restricted 20t4 2013 Funds Funds Total Total DfEIEFA Grants € E E General Annual Grant (GAG) : 5,s88,839 6,s88,839 6,785,28s Capital Grants 27,524 27,524 889,044 Pupil Premium 164,427 164,427 t78,773 Summer School 5,2s0 6,zso 4,750 -19 16 Bursary 20,249 20,249 17,427 Other DfE/EFA grants 99,707 99,707 74P70 6,906,996 6,906,996 7,949,349 Other Government Grants LA funds 234,257 234,257 236,09L National College Learn ing 7,000 7,0O0 NLE School lmprovement 15,000 15,000 29,142 CCC School lmprovement 69,739 Teaching School 57,923 57,923 113,000 314,180 3L4,780 447,972
Total 7,227,176 7,22L,176 8,397,321
5. Other lncome Unrestricted Restricted 20t4 2013 Funds Funds Tota! Total f f. f e Educational activities and visits 318,532 378,532 224,8L8 School fund income 32,223 32,223 58,950 Other 2L,47; 40,911 62,390 95,055 27,479 39L,665 4L3,L45 358,824 The Queen Katherine School Multi Academy Trust Page 25
Notes to the Financial Statements for the Year Ended 31 August 2014 (continued)
7. Resources Expended Staff Non Pay Expenditure 2074 20L3 Costs Premises Other Costs Total Total C f.f C f Cost of generating voluntary income Cost of activities for generating funds 188,9S; ,r,rr.i 146,033 350,537 301,912 Academy's educational operations Direct costs s,200,668 520,49s 450,133 6,L71,295 5,931,764 Allocated support costs 895,345 696,504 730,018 2,321,868 2,680,667 6,284,994 L,232,523 L,326,L84 8,843,701 8,914,343 Governance costs including allocated support costs 84,797 84,79L 99,582 6,284,994 L,232,523 L,470,975 8,928,492 9,013,925
2014 2013 lncoming/Outgoing Resources for the Year lnclude: f f Operating leases s7,98L 60,938 Fees payable to current auditor - audit of the financial statements 6,2@ 7,500 - other assurance services - other services
8. Cost of Activaties for Generating Funds Unrestricted Restricted 20L4 20L3 Funds Funds Tota! Total f f € Teaching and educational support staff costs 42,60L : 42,60L !,778 Support staff costs t46,379 L46,379 157,O49 Heat and light 8,540 8,540 8,602 Rent and rates 3,90s 3,905 3,626 Maintenance of premises and equipment 2,30s 2,30s 3,293 Cleaning 774 774 375 Catering 74t,5L2 t4t,5L2 Itg,Ot2 Other support costs 4,521 4,52L 9,177 350,537 350,s37 301,972 The Queen Katherine School Multi Academy Trust Page26
Notes to the Financial Statements for the Year Ended 31 August 2014 (continued)
9. CharitableActivities Unrestricted Restricted 20I4 2013 Funds Funds Total Tota! Direct Costs - educational operations f f f f Teaching and educational support staff costs 19,098 5,181,570 5,200,668 5,037,593 Depreciation 485,073 485,073 459,851 Loss/(Profit) on disposal 35,422 3s,422 Books, apparatus and stationery L28,779 t28,779 136,013 Staff development 29,497 28,497 23,909 Examination fees 122,667 122,667 110,640 External Education Provision 708,462 1o8,462 87,861 Ed ucational consultancy 20,t22 20,L22 75,375 Additional Pupil Premium costs t9,43L L9,43L 43,122 Other direct costs 78; 2L,390 22,L75 17,400 19,883 6,LsL,4L3 6,L7L,296 5,93L,764
Support Costs - educational operations Support staff costs 897,491 891,491 860,736 Depreciation 45,985 45,985 45,887 Loss/(Profit) on disposal 2,369 2,369 Recruitment and support t8,0L4 19,014 t7,189 Maintenance of premises and equipment 220,970 220,970 902,030 Legal and professional 58,326 68,326 40,4L8 Cleaning L6t,750 L6L,750 13,991 Rent and rates 66,929 66,929 63,407 Heat and light 82,246 82,246 92,438 lnsurance 43,352 43,352 47,4O5 Security 4,577 4,577 3,246 Transport s8,363 58,363 64,488 Catering L2,790 L2,790 13,113 Technology costs 169,304 169,304 L32,723 Educational activities 318,532 318,s32 224,8t8 School fund expenditure 29,511 29,51t 29,690 Photocopying 19,067 Lg,067 22,741 Other support costs 1o8,292 to8,292 106,347 2,321,868 2,321,968 2,690,667
Tota! direct and support costs 19,883 8,473,287 8,493,L64 8,6t2,43L
lncluded within resources expended are the following transactions. Individual transactions exceeding f5,OO0 are identified separately:
lndividual items above f5,000 Total Amount Reason ff
Fixed asset losses 37,791 27,133 Lift Replaced The Queen Katherine School MultiAcademy Trust Page27
Notes to the Financial Statements for the Year Ended 31 August 2014 (continued)
10. Governance Costs Unrestricted Restricted 20L4 2013 Funds Funds Total Total € f. f Legal and professional fees -. 31,208 3L,208 34,855 Net finance costs in respect of defined benefit pension schemes 47,000 47,000 54,000 Other 383 383 827 Audit remuneration 6,200 6,200 9,900 84,797 84,79L 99,s82
11. Staff a. Staff costs 20L4 2013 Staff costs during the period were: E f Wages and salaries 5,O75,8L2 4,9L6,473 Social security costs 372,379 360,807 Pension costs 77L,083 732,857 6,2t9,274 6,oLO,071 Supply teacher costs 64,839 3L,767 Supply support costs *1 15,919 Staff restructu ring costs 6,294,994 6,057,156 b. Staff numbers
The average number of persons (including senior management team) employed by the academy during the period expressed as full time equivalents was as follows: 20L4 2013 Charitoble Adivities No No Teachers 81 82 Administration and support 64 56 Management 10 10 155 158 c. Higher paid staff
The number of employees whose emoluments fell within the following annual bands was as follows: 20L4 2013 No No f60,001 - f70,000 2 1 €90,001 - f100,000 2 1 €110,001 - f120,000 1
All of the above employees participated in the Teachers' Pension Scheme. During the period ended 31 August 2014, pension contribution for these staff amountedto f44.,622 (2013: €36,033). The Queen Katherine School Multi Academy Trust Page 28
Notes to the Financial Statements for the Year Ended 31 August 2014 (continued)
L2. Central Services
No central services were provided by the trust to its academies during the period and no central charges arose.
Walney School joined the Queen Katherine School Multi Academy Trust on 01 September 2014.
13. Transfers Between Funds f10,510 has been transferred from the unrestricted catering fund to the General Annual Grant restricted general fund to cover the overhead costs that could not be directly allocated on a consistent basis. f218,653 was transferred to the restricted fixed asset used for charitable purposes in respect of assets purchased during the year as analysed below:
Transfer from the General Annual Grant restricted general fund LLS,1;2 Transfer from the general unrestricted fund. _ 75Ul_ 3t,tzg
The following transfers have been made between restricted fixed asset funds: Transfer from the EFA formula capital restricted fund Z7&!_ ,18^653
L4. Related Party Transactions - Trustees' Remuneration and Expenses The Executive Head Teacher, Head Teacher and other staff trustees only receive remuneration in respect of services they provide undertaking the roles of principal and staff and not in respect of their services as trustees. Other trustees did not receive any payments, other than expenses, from the academy in respect oftheir role as trustees. The value sfthe trustees, remuneration was as follows:
S Wilkinson (Executive Head Teacher and trustee); f90,001 - f95,000 (2013: f110,001- f 115,OOO) G Roscoe (Head Teacher of QKS and trustee): f90,001 - f95,000 (2013: n/a) J collings (stafftrustee): f35,001 - f40,000 (2013: €35,001 - f40,o0o) K Barber (stafftrustee): 850,001 - fss,ooo (2013: f25,001 - f3O,ooo) c Metcalfe (staff trustee): f4o,ool - €45,ooo (2013: €a0,001 - f45,ooo)
During the year ended 31 August 2014 there was €Nil (2013: f Nil) travel and subsistence expenses reimbursed to the trustees.
Other related party transactions involving the trustees are set out in a separate note.
15. Trustees' and Officers' lnsurance ln accordance with normal commercial practice the academy has purchased insurance to protect trustees and officers from claims arising from negligent acts, errors or omissions occurring whilst on academy business. The insurance provides cover (2013: up to f5,00Q000 f5,000,000) on any one claim and the cost for the year ended 31st August 2014 was fLO4 lZOl3: €104).
The cost of this insurance is included in the total insurance cost. The Queen Katherine School MultiAcademy Trust Page 29
Notes to the Financial Statement for the Year Ended 31 August 2014
15. Tangible Fixed Assets Freehold Assets tand & Under Plant & Furniture & rcT Total Buildings Construction Machinery Equipment Equipment Cost f € f e. As at 1 September 2013 6,539,145 271,039 3,523,745_ 266,055 181,018 70,78t,O02_ Reclassification 386,991 (386,991) Additions 715,952_ 46,163 41,150 15,388 218,553 Disposals (33,000) (16,340) (49,340) As at 31 August 2014 6,926,L36 3,s36,908 290,865 195,406 10,950,315
Depreciation As at 1 September 2013 499,603 530,922 47,L86 80,770 L,t58,481 Charge in year 224,592 234,2L5 26,993 45,257_ 531,057 Disposals (s,867) (s,682) (11,s49) As at 31 August 2014 724,195 759,270 68,497 126,027 L,677,989
Net book values As at 31 August 2014 6,zOL,94L 2,777,638 222,369 70,379 9,272,326
As at 1 September 2013 6,039,s42 27L,039 2,992,823 218,859 too,248 9,622,52L lncluded within freehold buildings and plant and machinery are the following assets which were transferred on conversion to an academy. The freehold buildings, integral features and the plant and machinery were valued at 'build costs' of fLL,649,701, f2,285,0O5 and €907,510 respectively on 23 June 20tt by Gary A Bushell, FRICS, AMAE of Bushell Raven Limited who is independent of the charitable company. The valuation by Gary A Bushell was based on the estimated rebuild costs, which the trustees have amended downwards to Eet to the Existing Use Value using a depreciated replacement cost approach. Under this approach the buildings were valued at f5,682,O23 at the date of conversion with integral features and plant and machinery remaining unchanged at f2,285,006 and €907,610 respectively.
The Sandgate building which was transferred to the academy in the year ended 31 August 2012 was valued on 23 June 2011 by Gary A Bushell, FRl6, AMAE of Bushell Raven Limited who is independent of the charitable company. The freehold buildings, integral features and the plant and machinery were valued at 'build costs' of f772 ,632, f231,790 and f99,338 respectively.
The trustees note that the valuation date is later than the date of conversion on 01 April 2011, but believe that the valuation will not be any different at the conversion date compared to the valuation date.
The trustees have valued the land at f1. This valuation reflects the fact that the land is tied specifically to educational use. No account has been taken in any potential development value.
Reclassification Assets under construction at 31 August 2013 relates to the Teaching and Learning centre completed in December 2013. At this time the centre was reclassified as freehold land and building.
Adjustments During the year ended the 31 August 2013 there were adjustments of f.L,739,075 added to the costs of tangible fixed assets and f 237,010 added to accumulated depreciation brought forward. These were in relation to the following: o All Weather Pitch not recognised on conversion. . Reclassification of integral features and plant and machinery previously included within overall building cost as plant and machinery. The net adjustment total of f 1,502,005 is shown within the voluntary income note as assets transferred from predecessor school. Theabovevaluationdisclosuretakesintoaccountbothoftheseadjustments. The Queen Katherine School Multi Academy Trust Page 30
Notes to the Financial Statements for the Year Ended 31 August 2014 (continued)
L7. Stock 20L4 2013 f f Catering 1,356 L,220 Uniforms 168 296 L,524 1,516
18. Dehtors 20t4 2013 € € Trade debtors 30,243 21,903 VAT recoverable 48,868 69,082 Prepayments L28,t77 94,515 Accrued income 32,zLO 25,O75 Other debtors 2,35L 5,347 24L,843 2t6,922
19. Creditors: Amounts Falling due Within One year 2014 2013 C f Trade creditors 304,799 229,694 Taxation and social security 710,770 203,60L Sundry creditors Lg,gzt 5,L47 EFA creditor 5t,927 Accruals and deferred income 596,004 380,s86 7,O82,32L 81rpr8 - Deferred lncome 2014 20t3 f. f Accruals and deferred income includes: Deferred income at 1 September 2013 155,561 324,5L8 Resources deferred in the year 532,682 155,561 Amounts released from previous years (1ss,s61) (324,s18) Deferred income at 31 August 2014 532,682 155,561
Deferred income comprises: LA funded statements for the period September 2O\4 to March 2015 LL7,97t EFA rates for the period September 2014 to March 2015 L6,307 School trips income for future trips 28,095 Teaching school grants in relation to the 20L4lt5 academic year 54,000 Walney School fund transferred prior to joining the MAT on Otl09/t 301,06s Train passes income received in relation tothe20t4lt5 academic year 2t,254 s32,682 The Queen Katherine School Multi Academy Trust Page 31
Notes to the Financial Statements for the Year Ended 31 August 2014 (continued)
20. Funds Balance at lncoming Resources Gains, Losses Balance at 01-Sep resources erpended and Transfers 31-Aug 20t3 20t4 CCfff Restricted General Funds General Annual Grant (GAG) 38s,947 6,s88,839 (6,862,472) (!Os,442) 6,872 Pupil Premium - t64,427 (164,427) Summer School 3s4 6,2sO (4,4s7) 2,147 15 -19 Bursary 23,955 20,249 (8,sss) - 35,649 Other DfElEFA grants 45,934 99,707 (107,048) - 38,593 LA funds - 234,2s7 (234,2s7l. Teaching School LO6,067 57,923 (114,92s) - 49,065 Educational activities and visits - 318,532 (318,s32) School Funds 29,260 32,223 (29,511) - 3L,972 Other restricted general funds 9,840 86,337 (80,040) - L6,t37 601,357 7,608,744 17,924,224) (705,442l' 180,43s Restricted Fixed Asset Funds Fixed assets used for Charitable purposes 9,622,s21- - (568,848) 218,6s3 9,272,326 Devolved formula capital EFA capital maintenance fund 9,622,s27 27,s24 (568,848) 191,129 9,272,326 Restricted Pension Reserve Funds Pension reserve fund Total Restricted Funds 8,792,878 7,636,268 (&558,072) (259,313) 7,6LL,76L
Unrestricted Funds Un restricted general funds 773,OO3 113,409 (78,319) l7s,t77) 732,9L6 Catering fund - 263,288 12s2,778l, (10,s10) All Weather Pitch designated fund r47,864 24,575 (17,006) - L49,433 Teaching School - 70,346 (22,3771 - 48,029 Pension deficit set aside designated fund 80,000 - 80,000 Total Unrestricted Funds 994,867 47t,6t8 l37O,42Ol (85,687) L,0LO,378
Total Funds 9,787,745 8,107,996 lg,g2g,4g2l (345,000) 9,622,L39
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 fonrvard at 31 August 2014.
The specific purposes for which the funds are to be applied are as follows:
General Annual Grant (GAG) fund This represents the core funding for the educational activities of the school that has been provided to the academy via the Educational Funding Agency (EFA).
Pupil Premium This represents funding paid by the DfE to support disadvantaged students in their teaching and learning, with the aim of improving their attainment and closing the gap with more advantaged students.
16 - 19 Bursary fund This represents funding paid by the EFA for young people who need financial support to stay on in further education or training. The Queen Katherine Schoo! Multi Academy Trust pase32
Notes to the Financial Statements for the Year Ended 31 August 2014 (continued)
Other EFA grants include: Walney Fast Track Grant This represents funding paid by the DfE directly to QKS to contribute towards expenses in setting up Walney academy and to assist with the support and improvement that Walney School requires.
Dcsf Sponsor Capacity Grant This represents funding paid by the DfE to build capacity within the Academy Trust in order to sponsor one or more underperforming schools (e.g. financial and HR advice), and to cover reasonable expenses and costs incurred in setting up the sponsor body and its infrastructure.
LA Funded Statements This represents funding paid by Cumbria County Council to support a continuum of provision for students with special educational needs (SEN), learning difficulties and disabilities.
Teaching School Restricted This represents grants paid from National College for Teaching and Leadership subject to specific conditions documented in individual funding offer letters
School Funds This represents restricted contributions to be extended on specific projects, activities and materials for the benefit of the pupils.
Educational Activities and visits This represents mainly parental contributions. Voluntary income and educational income to be expended on specific projects, activities and materials for the benefit of the pupils.
All Weather Pitch This represents funding paid by external users of the all weather pitch, a designated fund to be used for the replacement of the pitch.
Catering This represents funding relating to the provision of school meals to students and staff.
Teaching School Unrestricted This represents funding generated by service provision from teaching school.
Funds in Deficit Pension Reserve Fund - this fund represents the deficit on the Local Government Pension Scheme (LGpS) at the year end.
Analysis of academies by fund balance
Fund balance at 31 August 2014 were allocated as follows:
The Queen Katherine School Academy Trust * 7,183,537 Walney School 7,276 Central Services 0 Total before fixed assets and pension reserye 1,190,913
Restricted fixed asset fund 9,272,326 Pension reserye (1,841,000) Total 8,622,139
* walney joined school The Queen Katherine Multi Academy Trust on 01 September 20L4. The fund balance noted above relates to the unspent balance on the convertor support grant. The Queen Katherine School MultiAcademy Trust Page 33
Notes to the Financial Statements for the Year Ended 31 August 2014 (continued)
Analysis of academies by cost
Expenditure incurred by each academy during the year was as follows:
Teaching and Educationa! Other Other Costs Support Staff Support Staff Educational (excluding Costs Costs Supplies dep'n) Total ffff f. The Queen Katherine School Academy Trust 5,200,568 L,084,326 4s0,133 1,606,785 8,34t,912 Walney School t7,73L L7,731 Central Services Academy Trust 5,200,668 t,O8p.,326 450,133 L,624,5t6 9,359,543
2L. Analysis of Net Assets Between Funds
Fund balances at 31 August 2014 are represented by: Restricted Restricted Unrestricted General Fixed Asset Total Funds Funds Funds Funds f fE f Tangible fixed assets 9,272,326 9,272,326 Net current assets 1,010,378 180,43; 1,190,813 Pension scheme liability (1,841,000) (1,841,000)
Total Net Assets 1,010,378 (1,660,565) 9,272,326 9,622,L39
22. FinancialCommitments
Operating Leases
At 31 August 2014 the academy had commitments under non-cancellable 20t4 20x3 operating leases as follows: f f
Assets other than land & buildings Expiring within one year 32,636 421 Expiring within two and five years inclusive 78,62L 57,096 Expiring in over five years 5L,257 57,5t7
23. CapitalCommitments 2014 2013 f f Contracted for, but not provided in the financial statements 112,060 112,060
24. Members'Uability
Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound The Queen Katherine School Multi Academy Trust Page !!4
Notes to the Financial Statements for the Year Ended 31 August 2014 (continued)
25. Pension and Similar Obligations
The academy's employees belong to two principal pension schemes: the Teachers' Pension Scheme England and Wales (TpS) for academic and related staff; and the Local Government Pension Scheme (LGPS) for non-teaching staff; which is managed by your Pension Service (YPS) for Cumbria County Council. 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 relating to the year ended 31 March 2004 and of the LGPS 31 March 2013.
Contributions amounting to f387 (2013 - f94,360) were payable to the schemes at 31st August 2014 and are included within creditors.
Teachers' Pension Scheme
lntroduction The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers' pensions Regulations (2010) and from 1 April 20L4, by the Teachers' Pension Scheme Regulations 2014. Membership is automatic for full- time teachers in academies and, from 1 January 2007 automatic for teachers in part-time employment following appointment or a change of contract, although they are able to opt out.
The TPS is an unfunded scheme and members contribute on a 'pay as you go' basis - these contributions along with those made by employers are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by parliament.
The Teachers' Pensions Regulations require an annual account to be kept of receipts and expenditure (including the cost of pensions' increases). From 1 April 2001, the Account has been credited with a real rate of return, which is equivalent to assuming that the balance in the account is invested in notional investments that produce that real rate of return.
Valuation of the Teachers' Pension Scheme At the last valuation, the contribution rate to be paid into the TPS was assessed in two parts. First, a standard contribution rate (SCR) was determined. This is the contribution, expressed as a percentage of the salaries of teachers and lecturers in service or entering service during the period over which the contribution rate applies, which if it were paid over the entire active service of these teachers and lecturers would broadly defray the cost of benefits payable in respect of that service. Secondly, a supplementary contribution is payable if, as a result of the actuarial review, it is found that accumulated liabilities of the account for benefits to past and present teachers, are not fully covered by standard contributions to be paid in future and by the notional fund built up from past contributions. The total contribution rate payable is the sum of the SCR and the supplementary contribution rate.
The last valuation of the TPS related to the period 1 April 2001 to 31 March 2004. The Government Actuary,s report of October 2005 revealed that the total liabilities of the Scheme (pensions in payment and the estimated cost of future benefits) amounted to f156,500 million. The value of the assets (estimated future contributions together with the proceeds from the notional investments held at that valuation date) was f163,240 million. The assumed real rate of return was 3.5% in excess of prices and 2% in excess of earnings. The rate of real earnings growth was assumed to be 1.5%. The assumed gross rate of return was 6.5%. From 1 January 2007, the SCR was assessed al 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 ZO.5%, which translated into an employee contribution rate of 6.4% and employer contribution rate of L4.!% payable.
The Public Service Pensions Bill provides for future scheme valuations to be conducted in accordance with Treasury directions. The actuarial valuation report in summer 2014 takes effect from September 2015. The Queen Katherine School Multi Academy Trust Page 35
Notes to the Financial Statements for the Year Ended 31 August 2014 (continued)
25. Pension and Similar Obligations (continued)
Teachers' Pension Scheme Changes
Lord Hutton made recommendations in 2011 about how pensions can be made sustainable and affordable, whilst remaining fair to the workforce and the taxpayer. The Government accepted Lord Hutton's recommendations as the basis for consultation with trade unions and other representative bodies. ln March 2012 the Department for Education published proposals for the design for a reformed TPS.
The key provisions of the reformed scheme include: a pension based on career average earnings; an accrual rate of 1/57th; and a Normal Pension Age equal to State Pension Age, but with options to enable members to retire earlier or later than their Normal Pension Age. lmportantly, pension benefits built up before l April 2015 will be fully protected. ln addition, the Proposed Final Agreement includes a Government commitment that those within 10 years of Normal Pension Age on 1 April 2012 will see no change to the age at which they can retire, and no decrease in the amount of pension they receive when they retire. There will also be further transitional protection, tapered over a three and a half year period, for people who would fall just outside ofthe 10 year protection. ln his interim report of October 2010, Lord Hutton recommended that short-term savings were also required, and that the only realistic way of achieving these was to increase member contributions. At the Spending Review 2010 the Government announced an average increase of 3.2 percentage points on the contribution rates by 2014-15. The increases were to be phased in from April 2012 on a 40:80:100% basis.
The Department for Education has continued to work closely with trade unions and other representatives bodies to develop the reformatted Teachers' Pension Scheme and regulations giving effect to it came into force on 1 April 2014. Communications are being rolled out and the reformatted scheme will commence on l April 2015.
Under the definitions set out in Financial Reporting Standard (FRS 17) Retirement Benefits, the TPS is a multi-employer pension scheme. The academy is unable to identify its share of the underlying assets and liabilities of the scheme. Accordingly, the academy has taken advantage of the exemption in FRS 17 and has accounted for its contributions to the scheme as if it were a defined contribution scheme. The academy has set out above the information available on the scheme. The Queen Katherine School Multi Academy Trust Page 35
Notes to the Financial Statements for the Year Ended 3l August 2014 (continued)
25. Pensions and Similar Obligations (continued)
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 31st August 2014 was f336,150 (20L3: 8283,274), of which employer,s contributions totalled f259,285 (20L3: f2L4,O18) and employees' contributions totalled 876,865 (2013: f59,256). The agreed contribution rates for future years are t5.tYo for employers and 5.5% lo 7 .5% for employees.
Parliament has agreed, at the request of the Secretary of State for Education to a guarantee that, in the event of an academy closure, outstanding LGPS liabilities would be met by the Department of Education. The guarantee came into force on 18 July 2013.
Principal Actuarial Assumptions At 31 At 31 August August 2014 20L3
Rate of increase in salaries 3.70% 4.75% Rate of increase for pensions in payment / inflation 2.20% 2.4oo/o Discount rate for scheme liabilities 4.O0o/o 4.5oo/o lnflation assumption (CPl) 2.20% 2.40o/o
The current mortality assumptions include sufficient allowance for future improvements in mortality rates. The assumed life expectations on retirement age 65 are:
At 31 At 31 August August 20L4 2013 Retiring todoy Males 23.0 22.2 Females 25.5 24.9
Retiring in 20 yeors Males 25.7 24.7 Females 28.7 26.9 The Queen Katherine School Multi Academy Trust Page37
Notes to the Financial Statements for the Year Ended 31 August 2014 (continued)
25. Pensions and Similar Obligations (continued)
Loca! Government Pension Scheme (continued)
The academy's share of the assets and liabilities in the scheme and the expected rates of return were:
Expected Fairvalue Expected Fair value Return at at Return at at 31 August 31 August 31 August 31 August 2014 20L4 2013 2013 f f Equities 7.O0o/o 938,000 7.OO% 788,000 Government bonds 2.90% 278,OOO 3.4OYo 204,000 Other bonds 3.80% 118,000 4.40% 210,000 Property 6.20% 118,000 5.70% 83,000 Cash/liquidity o.50% 131,000 o.so% 11,000 Other 7.OO% s1,000 7.OO% 70,000
Total Market Value of Assets 1,634,000 1,366,000
Present value of scheme liabilities - Funded (3,475,000) (2,797,00Ct_) - Unfunded Surplus/(deficit) in the scheme (1,841,000) (1,431,000)
The expected rate of return is the assumed return the assets of the Fund will achieve over the entire life of the related obligation based on market expectations at the beginning of the period. This assumption is used to determine the expected return on assets for the pension expense
The actual return on scheme assets was f204,000 gain (2013: f139,000 gain)
Amounts Recognised in the Statement of Financial Activities 20!4 2013 € f
Current service cost (net of employee contributions) (2s9,000) (237,000) Past service cost Total operating charge
Analysis of Pension Finance lncome / (Costs) Expected return on pension scheme assets 85,000 s6,000 lnterest on pension liabilities Pension finance income / (costs) ffi The actuarial gains and losses for the current year are recognised in the statement of financial activities. The cumulative amount of actuarial gains and losses recognised in the statement of financial activities since the adoption of FRS 17 is a f510,000 loss (2013: f165,000 loss). The Queen Katherine School MultiAcademy Trust Page 38
Notes to the Financial Statements for the Year Ended 31 August 2014 (continued)
25. Pensions and Similar Obligations (continued)
Local Government Pension Scheme (continued)
Movement in the present value of defined benefit obligations were as follows: ZOL4 2013 e f At 01 September 2013 2,797,OO0 2,393,000 Current service cost 259,000 237,OOO lnterest cost 132,000 110,000 Members contributions 77,OO0 59,000 Actuarial (gains)/losses on liabilities 224,000 Benefits/tra nsfers pa id (14,000) (12,000) Benefit obligation at 31 August 2014 3,47s,000 2,797,000
Movement in the fair value of Academy's share of scheme assets: At 01 September 2013 1,366,000 955,000 Expected return on assets 85,000 s6,000 Actuarial gain/(loss) (121,000) 84,000 Employer contributions 24L,000 2t4,000 Member contributions 77,OOO 59,000 Benefits/tra nsfe rs pa id (14,000) (12,000) At 31 August 2014 1,634,000 1,365,000
The estimated value of employer contributions for the year ended 31 August 2015 is f 256,000.
The five-year history of experience adjustments is as follows: 2014 2013 20L2 aOLL f C E f Present value of defined benefit obligations (3,47s,000) 12,797,000]' (2,3e3,000) (1,736,000) Fair value of share of scheme assets 1,634,000 1,365,000 955,000 607,000 Deficit in the scheme (1,841,000) (1,431,000) (1,438,000) (1,1?p,O0O'
Experience gains | (losses) adjustments on share of scheme assets Amount f (121,000) 84,000 (220,000) (29,000) Experience gains / (losses) adjustments on share of scheme !iabilities Amount € (130,000) (39,000) (15,000) The Queen Katherine School Multi Academy Trust Page 39
Notes to the Financial Statements for the Year Ended 31 August 2014 (continued)
26. Related PartyTransactions
Owing to the nature of the academy's operations and the composition of the board of trustees being drawn from local public and private sector organisations, it is inevitable that transactions will take place within organisations in which a member of the board of trustees may have an interest. All transactions involving such organisations are conducted at arm's length and in accordance with the academy's financial regulations and normal procurement procedures.
The following related party transactions took place in the period of account:
The school has a close relationship with 42 Creative Thinking Limited with S Parkman as a director of that company.
. The academy paid expenditure totalling f4,009 (2013: f3,302), to supply goods and services to the school for design and artwork.
. The cost does not include an element of profit, but include cost directly attributable to material and labour.
o ln entering into the transaction the trust has complied with the requirements of the EFA's Academies Financial Handbook.
27. Subsidiary
QKS Meadowview Nursery Limited is a wholly owned subsidiary of the academy as it owns !OO% of the ordinary share capital. The directors of QKS Meadowview Nursery Limited are S Wilkinson, S Pooley and S Emmott.
Section 404 Companies Act 2006 requires group accounts to include a consolidated balance sheet and consolidated profit and loss account. The Queen Katherine School Multi Academy Trust has a subsidiary, QKS Meadowview Nursery Limited, which has been excluded from these accounts under section 405 Companies Act 2006 on the grounds that its inclusion is not material for the purpose of giving a true and fair view.
. The academy received rental income totalling f5,500 (2013: f5,042), recharged expenses totalling f1,834 (2013: f2,388) to the nursery on a cost basis and received a donation from the Nursery in the sum of fNil (2013: f18,000) in the year. At the year end invoices totalling f Nil (2013: f46) were outstanding.
. The rent payable is at arms length, the rental value was calculated by an independent valuer (Hyde Harrington). None ofthe trustees participated in, nor influenced this valuation.
. ln entering into the transaction the trust has complied with the requirements of the EFA's Academies Financial Handbook.