(a company limited by guarantee) annual report and...

Registered number: 08130502 (England & Wales)

TEDDINGTON SCHOOL

(A company limited by guarantee)

Annual report and financial statements

For the year ended 31 August 2016

TEDDINGTON SCHOOL


Contents

Page

Reference and administrative details 1 - 2

Trustees' report 3 - 14

Governance statement 15 - 17

Statement on regularity, propriety and compliance 18

Statement of Trustees' responsibilities 19

Independent auditors' report on the financial statements 20 - 21

Independent auditors' assurance report on regularity 22 - 23

Statement of financial activities incorporating income and expenditure account 24

Balance sheet 25

Statement of cash flows 26

Notes to the financial statements 27 - 44

TEDDINGTON SCHOOL


Reference and administrative details of the academy, its trustees and advisersFor the year ended 31 August 2016

Trustees Jennifer Johnson (Chair)1

Claire Little (Vice Chair)1

John Wilkinson1

Beverley BellAnne Davidson (appointed 2 November 2015)Julian Gravatt (appointed 2 November 2015)Daryl GreenwoodNicola HarrisonAdele KimberSimon LambClare MeadowsBarnaby MollettDavid NossiterSusan PhillipsKirandeep SahotaSarah TateLynne WarrenBill Watkin (resigned 12 July 2016)Nicola Whiteside

1 Member and trustee

Company registerednumber 08130502

Company name Teddington School

Principal and registeredoffice

Broom RoadTeddingtonMiddlesexTW11 9PJ

Clerk to Governors Andrea Arbiter

Senior managementteam John Wilkinson, Headteacher

Rebecca Poole, Deputy HeadteacherNigel Hill, Deputy HeadteacherFhiona Shaw, resigned 31.08.16, Deputy HeadteacherMarc Jacobs, resigned 31.12.15, Assistant HeadteacherPaul McGrath, Assistant HeadteacherKevin Watling, Assistant HeadteacherNikki Meston, Assistant HeadteacherKatherine Corrigal, appointed 01.01.16, Assistant HeadteacherJulie Dudley, Business & Community ManagerRowena O’Beirne, Director of Finance and Administration

Independent auditors Williams Giles Limited12 Conqueror CourtSittingbourneKentME10 5BH

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Reference and administrative details of the academy, its trustees and advisersFor the year ended 31 August 2016

Advisers (continued)

Bankers Lloyds BankTolworth Commercial Centre402/404 Ewell RoadTolworthSurbitonSurreyKT6 7HG

Solicitors Browne Jacobson LLPMowbray HouseCastle Meadow RoadNottinghamNG2 1BJ

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Trustees' reportFor the year ended 31 August 2016

The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annualreport together with the financial statements and auditor's report of Teddington School (the Academy) for the 1September 2015 to 31 August 2016. The Trustees confirm that the Annual report and financial statements of theacademy comply with the current statutory requirements, the requirements of the academy's governingdocument and the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting byCharities" issued in March 2005. The Annual report serves the purposes of both a Trustees' report, and aDirectors' report under company law.

The trust operates an academy for pupils aged 11 to 18 serving a catchment area in Teddington. It has a pupilcapacity of 1440 and had a roll of 1337 in the school census on 19.05.2015.

Structure, Governance and Management

a. Constitution

The academy is a charitable company limited by guarantee and an exempt charity.

The charitable company's Memorandum and Articles of Association is the primary governing document of theacademy trust.

The Trustees of Teddington School are also the directors of the charitable company for the purpose of companylaw.

The charitable company is known as Teddington School.

Details of the Trustees who served during the are included in the Reference and administrative details on page1.

b. Members' liability

Each member of the charitable company undertakes to contribute to the assets of the charitable company in theevent of it being wound up while they are a member, or within one year after they cease to be a member, suchamount as may be required, not exceeding £10, for the debts and liabilities contracted before they ceased to bea member.

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Trustees' report (continued)For the year ended 31 August 2016

c. Method of recruitment and appointment or election of Trustees

The structure of the Governing Body is set out in Articles of Association. These clauses provide for theGoverning Body to have the following structure:

Category

Parent 6

Headteacher (ex-officio) 1

Staff 3

LA nominated 1

Community 8

Member appointed 0

Co-opted 0

Total 19

The Headteacher is a trustee by virtue of their role and does not need to be elected to the post.

Parent Governors are voted for by the Parents of students at the Academy Trust. Elections are run by theAcademy Trust and Governors under the rules in the Memorandum of Association. Staff governors are voted forby the staff at the Academy Trust under the same rules as Parent Governors.

The Local Authority appoints the Local Authority Governor under their own rules. All Governors are appointed fora 4 year period.

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Processes for changes in Governors

A) If the person is resigning as a Governor: The Clerk to the Governing Body asks the individual to confirm inwriting (which can be an email) to the Clerk their resignation and the date that it will be effective from. The next Governing Body formally minutes that the Governor has left / is leaving the Governing Body and records the date that their position as Governor ends/ended;

B) If the person has reached the end of their term and / or their employment at the academy ends : No 'email of resignation' is required, but the Governing Body still needs to formally minute that the Governor has left due to their term or employment ending;

C) The Clerk then forwards the signed Governing Body minute (and resignation email if appropriate) to theDirector of Finance and Administration;

D) The Director of Finance and Administration then amends the records at Companies House.

When a new Governor is appointed

A) The minute at the Governing Body meeting confirming their appointment as a Governor needs to read as follows: "[Name of individual] was confirmed / appointed [depending on the category of Governor and therefore how they were appointed] as a Governor with effect from [insert date]. Their four year term will end on [insert date][Note – do not use the preceding sentence for Headteachers since it is ex officio]. [Name of individual] will be appointed as a Director of the Academy Trust and registered accordingly with Companies House."

B) The Governor completes the form required to register them as a DirectorC) The GB minute and scanned form are sent to the Director of Finance and AdministrationD) The Director of Finance and Administration updates the Companies House recordsE) This process should be undertaken as new Governors are appointed, and not left until the Annual Return.

d. Policies and procedures adopted for the induction and training of Trustees

All new governors participate in a formal and documented Induction Programme, which will be tailored to theirexisting experience and identifies any specific training needed in order to carry out their role effectively. Onappointment they are also assigned a mentor, who is an existing and experienced Governor, to help guide themthrough the processes and procedures and to introduce them to the roles of the various committees.

New and existing Governors are required to undertake, and maintain, Safeguarding Awareness training. Inaddition they are expected and supported to complete training relevant to the particular responsibilities theyundertake. Training is provided through skill specific courses run by the local borough Governor Support unit,subscription to, accredited, on line training providers and in house training sessions held at the Academy Trust.

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e. Pay policy for key management personnel

The Governing Body’s Pay Committee is responsible for implementing the Academy’s Pay Policy in order tomanage the remuneration of staff in a non-discriminatory, responsible and transparent way.

The salary range for all staff paid on the leadership spine is determined by reference to the provisions of theSTPCD and includes consideration of any broader responsibilities that attach to the role.

Headteacher The Individual School Range (ISR) of 7 points for the Headteacher will also be determined by reference to theschool group size and the appropriate positioning of the pay range of any Deputy or Assistant Headteacher at theschool, as specified in the School Teachers’ Pay and Conditions Document.

The Governing Body will only re-determine the Headteacher’s ISR in the circumstances specified in the SchoolTeachers’ Pay and Conditions Document.

Deputy Headteacher and Assistant Headteacher The 5 point salary range for a Deputy Headteacher and Assistant Headteacher shall be determined by referenceto the STPCD, taking into account the appropriate positioning of the pay range of the Headteacher and any othermember of the leadership group at the school. The salary range for a Director of Finance and Administration isaligned with that of a Deputy Headteacher and a Business and Community Manager with an AssistantHeadteacher.

The Governing Body will only re-determine the pay range of a Deputy or Assistant Headteacher in circumstancesspecified in the STPCD.

Determining pay progression of the leadership group The Headteacher, Deputy Headteachers and Assistant Headteachers must demonstrate sustained high qualityof performance, with particular regard to leadership, management and pupil progress at the school and will besubject to an annual appraisal at which performance against objectives will be reviewed before any performancepoints will be awarded.

Annual pay progression within the range for this post is not automatic. The Headteacher will recommendprogression of members of the leadership group to the Pay Committee, which will make the progressiondetermination. Where a member of the leadership group, or the school, feels that there has been significant andpermanent change to his/her leadership role, such that the salary should be reviewed, then there should be aformal job re-evaluation for this purpose.

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f. Organisational structure

The Academy Trust believes that:

• Strategic / policy decisions regarding the whole Academy Trust should be taken by Governors;

• Operational and managerial decisions should be delegated to the Headteacher;

• The Headteacher should delegate operational decisions with a view to keeping decision making as close to the operational impacts as possible and to ensure staff feel empowered to lead their areas of responsibility.

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The Governing Body exercises all of the powers of the Academy Trust. It is responsible for the performance ofTeddington School. Accordingly, it approves the policies for the Academy Trust. In addition, the Governing Bodyoffers support, constructive advice, a sounding board for ideas, a second opinion on proposals and help whereneeded, but may also challenge, ask questions, seek information, improve proposals and so seek to arrive at thebest solution for Teddington School.

The Governing Body has established a structure of Committees as appropriate. These Governing BodyCommittees act in an advisory capacity to the Full Governing Body, except where powers have beenspecifically delegated to them by the Governing Body.

The Governing Body has the following committees:

a. Achievement and Teaching b. Students c. Resources

Committees are expected to meet at least three times a year, with additional meetings if required. The functionsand proceedings of the committees are subject to regulations made by the Governors from time to time pursuantto the powers contained in the Articles of Association.

A committee may also choose to establish its own sub-committees; any such committee will act in an advisorycapacity to the Governing Body committee. The functions and proceedings of the committees are subject toregulations made by the Governors from time to time pursuant to the powers contained in the Articles ofAssociation.

The Headteacher is responsible for the internal organisation, management and control of the Academy Trust, foradvising on and implementing the Trust’s strategic framework, for the implementation of all policies approved bythe Governors and for the direction of the teaching and the curriculum at the Academy Trust. For these purposesthe Governors shall delegate those powers and functions required by the Headteacher. The Headteacher willformulate aims and objectives and policies and targets for the Governing Body to consider, and to report to theGoverning Body on progress at each meeting in accordance with a schedule drawn up annually with the Chair ofthe Governing Body. The Headteacher will work closely with the senior leadership team to this end.

The Senior Leadership Team (SLT) consists of the Headteacher, four Deputy Headteachers, threeAssistant Headteachers, one Director of Finance and Administration and one Business and CommunityManager. The Headteacher, Director of Finance and Administration and Resources Committee are responsiblefor the authorisation of spending within agreed budgets; a summary of this is in the Scheme of Delegation. Somespending control is devolved to budget holders and must be authorised in line with the Scheme of Delegation.The Headteacher is responsible for the appointment of staff and a Governor presence is required for seniorappointments.

The Headteacher and staff are accountable to the Governing Body for the Academy Trust’s performance. TheGoverning Body will be prepared to explain its decisions and actions to anyone who has a legitimate interest.This may include staff, pupils and parents as well as the local authority or the Secretary of State.

The Headteacher monitors appropriate delegations of authority with other staff.

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g. Connected organisations, including related party relationships

Owing to the nature of the Academy Trust’s operations and the composition of the Board of Governors beingdrawn from local public and private sector organisations, it is inevitable that transactions will take place withorganisations in which a member of the Board of Governors may have an interest. All transactions involving suchorganisations are declared as interests and conducted at arm’s length and in accordance with the AcademyTrust’s financial regulations and normal procurement procedures.

h. Trustees' indemnities

The Academy Trust has arranged for a qualifying third party indemnity provision through Zurich Insurance plc.

Objectives and Activities

a. Objects and aims

Teddington School’s objective is specifically restricted to the following: to advance for the public benefit,education in the United Kingdom, in particular, but without prejudice to the generality of the foregoing byestablishing, maintaining, carrying on, managing and developing an Academy Trust offering a broad andbalanced curriculum within a comprehensive setting.

b. Objectives, strategies and activities

The Academy Trust set itself the following specific objectives for the year in order to bring about development inkey areas of its provision:

1. Further improve achievement of the most able2. Develop the positive school culture3. Further development of the Sixth Form4. Consistency of practice with homework and marking5. Improve differentiation – the engagement of all learners

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c. Public benefit

The Governors confirm that they have complied with the duty in Section 17 of the Charities Act 2011 to have dueregard to the Charity Commissioner’s general guidance on public benefit in exercising their powers or duties.They have referred to this guidance when reviewing the Academy’s aims and objectives and in planning its futureactivities.

The Academy aims to advance for the public benefit, education in the London Borough of Richmond uponThames and the surrounding area. The Academy provides facilities for recreational and other leisure timeoccupation for the community at large in the interests of socials welfare and with the interest of improving the lifeof the said community.

The school carries out a range of activities to support children’s learning and experience beyond our own school, including:

• Arts Specialist Outreach work, including art projects for primary school groups, gifted and talented arts provision for other secondary school students;

• Sports coaching for primary school groups, both here and at primary schools;• Science primary workshops to provide specialist scientific input into primary schools;• Cross-phase music activities;• Active membership of the Hampton Collaborative, working with other local private and state secondary

schools to provide gifted and talented provision• Work with other schools on professional development• Leading, with Waldegrave School, a new Multi Academy Trust to improve local secondary academies

Achievements and performance

a. Key financial performance indicators

The Academy Trust’s key outcome measures for 2015-16 are as follows:

2016 2015

Students achieving 5+ grades of A* - C including English and Maths 80% 74%

Progress 8 +0.22 +0.16

Attainment 8 5.84 5.58

Students achieving the Basics Measure 80% 74%

Students achieving the English Baccalaureate 40% 45%

Students achieving A/A* 33% 33%

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b. Review of activities

Most of the Academy Trust’s funding is obtained from the DfE via the Education Funding Agency (EFA) in theform of a General Annual Grant (GAG), the use of which is restricted to particular purposes. The grants receivedfrom the DfE during the period ended 31 August 2016 and the associated expenditure are shown as restrictedfunds in the Statement of Financial Activities.

Other sources of income are ‘unrestricted’ and these are mainly monies collected for Academy Trust trips,voluntary donations made by parents to support Academy Trust life, lettings income and catering income.

During the year ended 31 August 2016, expenditure of £7,292,191 was covered by recurrent grant funding fromthe EFA. Incoming resources for the year were £8,503,556. The excess of expenditure over income for the yearwas £1,126,487.

The Academy Trust has taken on the deficit in the Local Government Pension Scheme in respect of its nonteaching staff transferred on conversion. The deficit is incorporated within the Statement of Financial Activitieswith details in Note 23 to the financial statements.

The Academy Trust held fund balances of at 31 August 2016 of £44,408K, including the pensions reserve deficitas mentioned. The Governors believe that the fund balances are adequate to provide sufficient working capital intimes of reduced funding, to provide a contingency to manage unexpected emergencies and to fulfil theobjectives within the School Development Plan.

Key financial policies adopted or reviewed during the year include the Financial Procedures which lays out theframework for financial management, including financial responsibilities of the Board, Headteacher, managers,Budget Holders and other staff, as well as delegated authority for spending.

Financial Review

a. Going concern

After making appropriate enquiries, the Governing Body has a reasonable expectation that the Academy hasadequate resources to continue in operational existence for the foreseeable future. For this reason it continuesto adopt the going concern basis in preparing the financial statements. Further details regarding the adoption ofthe going concern basis can be found in the Statement of Accounting Policies.

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b. Financial risk management objectives and policies

The Academy Trust has a Risk Management Strategy, Risk Register and Business Continuity Plan in place andinclude financial risks to the Academy Trust. The register and plan are regularly reviewed in light of any newinformation and formally reviewed annually.

Since the Academy Trust is oversubscribed from 11-16, risks to revenue funding from a falling roll are small.However, the period of growth during the first few years of the opening of the 6th form creates some uncertaintyin Post-16 revenue funding. In addition, the reduction in Post 16 funding levels, the freeze on the Government’soverall education budget, changes in funding arrangements for special educational needs and increasingemployment and premises costs mean that budgets will be increasingly tight in coming years.

The Governors examine the financial health formally every term, reviewing performance against budgets andoverall expenditure by means of regular update reports at all full Governors’ Resources Committee meetings.The Governors also ensure that sufficient funds are held to cover all known anticipated commitments.

At the end of the period, the Academy Trust had no significant liabilities arising from trade creditors or debtorswhere there would be a significant effect on liquidity.

The Governing Body recognise that the defined benefit scheme deficit (Local Government Pension Scheme),which is set out in Note 23 to the financial statements, represents a significant potential liability. However, as theGovernors consider that the Academy Trust is able to meet its known annual contribution commitments for theforeseeable future, this risk from this liability is minimised.

c. Principal risks and uncertainties

The principal risks and uncertainties of facing the Academy Trust are as follows:

Financial – the Academy Trust has considerable reliance on continued Government funding through the EFA. Inthe last period, 86% of the Academy Trust’s incoming resources were ultimately Government funded and there isno assurance that Government policy or practice will remain the same or that public funding will continue at thesame levels or on the same terms. Continued increases in staffing costs such as National Insurance andpensions contributions and inflation rises are not currently being reflected in revenue funding allocations andhave to be met by schools. Changes in special educational needs funding will impact over the next few years. Inaddition, the period of growth during the first few years of the opening of the 6th form creates some uncertainty inPost-16 revenue funding levels.

Governors ensure that requirements of the Academy Financial Handbook are being met and that policies andprocedures and systems are in place to mitigate the risk of fraud and mismanagement of funds.

Failures in governance and/or management – the risks in this area arise from potential failure to effectivelymanage the Academy Trust’s finances, internal controls, compliance with regulations and legislation, statutoryreturns etc. The Governors continue to review and ensure that appropriate measures are in place to mitigatethese risks.

Reputational – the continuing success of the Academy Trust is dependent on continuing to attract applicants insufficient numbers by maintaining the highest educational standards. To mitigate this risk, Governors ensure thatstudent success and achievement are closely monitored and reviewed.

Safeguarding and child protection – the Governors continue to ensure that the highest standards are maintainedin the areas of selection and monitoring of staff, the operation of child protection policies and procedures, healthand safety and discipline.

Staffing – the success of the Academy Trust is reliant on the quality of its staff and so the Governors monitor andreview policies and procedures to ensure continued development and training of staff as well as ensuring thatthere is clear succession planning.

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d. Reserves policy

The Governors review the reserves level of the Academy Trust annually. This review encompasses income andexpenditure streams, the need to match income with commitments and the nature of reserves.

The Governors policy determines that the appropriate level of free reserves should be set to have a minimum of£300,000 held in reserve in order to provide sufficient working capital to enable the Academy Trust to coverdelays between spending and receipt of grants, to manage unfunded increases in student numbers and toprovide a cushion to deal with unexpected emergencies.

The Academy Trust’s forecasted 2017/18 budget anticipates a reduction in reserves to c.£200k and Governorshave agreed to permit this reduction to the policy for one year during the period of growth of the 6th form studentnumbers.

e. Material investments policy

Due to the nature of funding, the Academy Trust may at times hold cash balances surplus to its short termrequirements. The Governors have authorised the opening of an additional bank investment account to takeadvantage of higher interest rates and ensure that all funds surplus to immediate requirements are invested tooptimal effect. No other form of investment is authorised.

The Governors are committed to ensuring that all funds under their control are managed in such a way as tomaximise return whilst minimising risk.

Plans For Future Periods

a. Future developments

By the end of the second year of the development project led by the new Headteacher, the following progresshas been made;

• All school systems now reviewed, refined and newly implemented• Impact on Key performance indicators already positive. Attendance and Behaviour has improved and

school achieved best academic results in 2016 • Staffing structure reviewed and implemented and now fit for purpose• Currently reviewing curriculum plan to ensure best value and continued appropriateness for our students

In 2016-17 we will be finalising the embedding of all the developments of the last two years and further refiningour practice to ensure we continue to meet target. This year’s development plan is focused on the school beingjudged as outstanding by Ofsted as a means of ensuring all of our services and provisions meet the needs of allstaff and students. We will continue to ensure that we set prudent budgets and make financial decisions basedon our future plans. The continued development of the sixth form is a key priority and focused on recruitment ofstudents now that the school has a proven track record of post 16 academic success. Our work leading the localMAT with Waldegrave School will also begin to provide benefits for our school this year in terms of sharedprovision and financial economies of scale.

Funds Held as Custodian Trustee on Behalf of Others

The Academy Trust operates a dual use agreement with the London Borough of Richmond upon Thames Sports& Leisure Services department with respect to sharing the site’s sports facilities

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Employee involvement and employment of the disabled

Teddington School aims to promote equality and diversity and tackle any form of discrimination. The Governors’policy on Equality and Diversity reflects the school’s legal obligation and duty to devise equality schemes fordisability and complies with The Equalities Act 2010 and Part 5A of The Disability Discrimination Act (DDA) 2005.

The Academy is committed to the implementation of equal opportunities principles and the monitoring and activepromotion of equality in all aspects of staffing and employment. All staff appointments and promotions are madeon the basis of merit and ability and in compliance with the law. As an employer the Academy strives to ensurethat discrimination and harassment in its employment practice is eliminated and actively promotes equalityacross all groups within the workforce.

Employee consultation

During the course of 2015/16 staff were formally consulted about a revision to the academy’s Sickness andAbsence Policy and Special Leave Policy and procedures.

In addition, consultations took place via whole-staff meetings and circulars in order to keep staff informed andinvite comments about developments around the establishment of the Richmond West Schools Trust.

Disclosure of Information to Auditors

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

so far as that Trustee is aware, there is no relevant audit information of which the charitable company's

auditors are unaware, and

that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of

any relevant audit information and to establish that the charitable company's auditors are aware of that

information.

Auditors

The auditors, Williams Giles Limited, have indicated their willingness to continue in office. The Trustees willpropose a motion re-appointing the auditors at a meeting of the Trustees.

This report was approved by order of the board of trustees as the company directors, on 13 December 2016and signed on its behalf by:

Jennifer Johnson (Chair)Chair of Trustees

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Governance Statement

Scope of Responsibility

As trustees, we acknowledge we have overall responsibility for ensuring that Teddington School has an effectiveand appropriate system of control, financial and otherwise. However such a system is designed to managerather than eliminate the risk of failure to achieve business objectives, and can provide only reasonable and notabsolute assurance against material misstatement or loss.

The board of trustees has delegated the day-to-day responsibility to the Headteacher, as Accounting Officer, forensuring financial controls conform with the requirements of both propriety and good financial management andin accordance with the requirements and responsibilities assigned to it in the funding agreement betweenTeddington School and the Secretary of State for Education. They are also responsible for reporting to the boardof 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 theStatement of Trustees' responsibilities. The board of trustees has formally met 6 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

Jennifer Johnson (Chair) 6 6Claire Little (Vice Chair) 6 6John Wilkinson 5 6Beverley Bell 5 6Anne Davidson 5 5Julian Gravatt 5 5Daryl Greenwood 6 6Nicola Harrison 6 6Adele Kimber 6 6Simon Lamb 6 6Clare Meadows 4 6Barnaby Mollett 6 6David Nossiter 6 6Susan Phillips 4 6Kirandeep Sahota 5 6Sarah Tate 6 6Lynne Warren 6 6Bill Watkin 4 6Nicola Whiteside 5 6

The Resources Committee is a sub-committee of the main board of trustees. Its purpose is to:• To ensure that the Academy Trust undertakes proper financial planning, monitoring and probity• To make appropriate comments and recommendations on such matters to the governing body on a regularbasis.

Attendance at meetings in the year was as follows:

Trustee Meetings attended Out of a possible

Bev Bell - Committee Chair 3 3Kirandeep Sahota - Vice Chair 3 3Clare Meadows 2 3Jen Johnson 3 3Claire Little 1 3Anne Davidson 3 3Nikki Harrison 2 3Simon Lamb 2 3John Wilkinson 3 3

Review of Value for money

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Governance Statement (continued)

As Accounting Officer, the Headteacher has responsibility for ensuring that the academy delivers good value inthe use of public resources. The Accounting Officer understands that value for money refers to the educationaland wider societal outcomes achieved in return for the taxpayer resources received.

The Accounting Officer considers how the academy’s use of its resources has provided good value for moneyduring each academic year, and reports to the board of trustees where value for money can be improved,including the use of benchmarking data where appropriate. The Accounting Officer for the academy hasdelivered improved value for money during the year by:

The Purpose of the System of Internal Control

The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk offailure to achieve policies, aims and objectives; it can therefore only provide reasonable and not absoluteassurance of effectiveness. The system of internal control is based on an ongoing process designed to identifyand prioritise the risks to the achievement of academy policies, aims and objectives, to evaluate the likelihood ofthose risks being realised and the impact should they be realised, and to manage them efficiently, effectively andeconomically. The system of internal control has been in place in Teddington School for the year 1 September2015 to 31 August 2016 and up to the date of approval of the annual report and financial statements.

Capacity to Handle Risk

The board of trustees has reviewed the key risks to which the academy is exposed together with the operating,financial and compliance controls that have been implemented to mitigate those risks. The board of trustees is ofthe view that there is a formal ongoing process for identifying, evaluating and managing the academy'ssignificant risks, that has been in place for the year 1 September 2015 to 31 August 2016 and up to the date ofapproval of the annual report and financial statements. This process is regularly reviewed by the board oftrustees.

The Risk and Control Framework

The academy’s system of internal financial control is based on a framework of regular management informationand administrative procedures including the segregation of duties and a system of delegation and accountability.In particular, it includes:

comprehensive budgeting and monitoring systems with an annual budget and periodic financial reports

which are reviewed and agreed by the board of trustees;

regular reviews by the Resources Committee of reports which indicate financial performance against the

forecasts and of major purchase plans, capital works and expenditure programmes;

setting targets to measure financial and other performance;

clearly defined purchasing (asset purchase or capital investment) guidelines.

delegation of authority and segregation of duties;

identification and management of risks.

The board of trustees has considered the need for a specific internal audit function and has decided not toappoint an internal auditor. However, the Trustees have appointed Williams Giles Limited, the external auditors,to perform additional checks.

The auditors' role includes giving advice on financial matters and performing a range of checks on theacademy's financial systems. On a quarterly basis, the auditors report to the board of trustees on the operationof the systems of control and on the discharge of the board of trustees' financial responsibilities.

Review of Effectiveness

As Accounting Officer, the Headteacher has responsibility for reviewing the effectiveness of the system ofinternal control. During the year in question the review has been informed by:

the work of the external auditors;

the financial management and governance self-assessment process;

the work of the executive managers within the academy who have responsibility for the development and

maintenance of the internal control framework.

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Governance Statement (continued)The Accounting Officer has been advised of the implications of the result of their review of the system of internalcontrol by the Resources Committee and a plan to address weaknesses and ensure continuous improvement ofthe system is in place.

Approved by order of the members of the board of trustees on 13 December 2016 and signed on their behalf, by:

Jennifer Johnson (Chair)Chair of Trustees

John WilkinsonAccounting Officer

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Statement on Regularity, Propriety and Compliance

As Accounting Officer of Teddington School I have considered my responsibility to notify the academy trustboard of trustees and the Education Funding Agency of material irregularity, impropriety and non-compliancewith EFA terms and conditions of funding, under the funding agreement in place between the academy trust andthe Secretary of State for Education. As part of my consideration I have had due regard to the requirements ofthe Academies Financial Handbook 2016.

I confirm that I and the academy trust board of trustees are able to identify any material irregular or improper useof funds by the academy trust, or material non-compliance with the terms and conditions of funding under theacademy trust’s funding agreement and the Academies Financial Handbook 2016.

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

John WilkinsonAccounting Officer

Date: 13 December 2016

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Statement of Trustees' responsibilitiesFor the year ended 31 August 2016

The Trustees (who act as governors of Teddington School and are also the directors of the charitable companyfor the purposes of company law) are responsible for preparing the Trustees' report and the financialstatements in accordance with the Annual Accounts Direction issued by the Education Funding Agency, UnitedKingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable lawand regulations.

Company law requires the Trustees to prepare financial statements for each financial year. Under company lawthe Trustees must not approve the financial statements unless they are satisfied that they give a true and fairview of the state of affairs of the charitable company and of its incoming resources and application ofresources, including its income and expenditure, for that period. In preparing these financial statements, theTrustees are required to:

select suitable accounting policies and then apply them consistently;

observe the methods and principles of the Charities SORP 2015 and the Academies' Accounts Direction

2015 to 2016;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that

the charitable company will continue in business.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explainthe charitable company's transactions and disclose with reasonable accuracy at any time the financial positionof the charitable company and enable them to ensure that the financial statements comply with the CompaniesAct 2006. They are also responsible for safeguarding the assets of the charitable company and hence fortaking 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 appliesfinancial and other controls, which conform with the requirements both of propriety and of good financialmanagement. They are also responsible for ensuring grants received from the EFA/DfE have been applied forthe purposes intended.

The Trustees are responsible for the maintenance and integrity of the corporate and financial informationincluded on the charitable company's website. Legislation in the United Kingdom governing the preparation anddissemination of financial statements may differ from legislation in other jurisdictions.

Approved by order of the members of the board of trustees on 13 December 2016 and signed on its behalf by:

Jennifer JohnsonChair of Trustees

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TEDDINGTON SCHOOL


Independent auditors' report on the financial statements to the members of Teddington School

We have audited the financial statements of Teddington School for the year ended 31 August 2016 whichcomprise the Statement of financial activities incorporating income and expenditure account, the Balance sheet,the Statement of cash flows and the related notes. The financial reporting framework that has been applied intheir preparation is applicable law, United Kingdom Accounting Standards (United Kingdom Generally AcceptedAccounting Practice) including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic ofIreland" and the Academies Accounts Direction 2015 to 2016 issued by the Education Funding Agency.

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitablecompany's members those matters we are required to state to them in an Auditors' report and for no otherpurpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other thanthe charitable company and its members, as a body, for our audit work, for this report, or for the opinion we haveformed.

Respective responsibilities of Trustees and auditors

As explained more fully in the Statement of Trustees' responsibilities, the Trustees (who are also the directors ofthe academy for the purposes of company law) are responsible for the preparation of the financial statementsand 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 applicablelaw and International Standards on Auditing (UK and Ireland). Those standards require us to comply with theAuditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient togive reasonable assurance that the financial statements are free from material misstatement, whether caused byfraud or error. This includes an assessment of: whether the accounting policies are appropriate to the academy'scircumstances and have been consistently applied and adequately disclosed; the reasonableness of significantaccounting estimates made by the Trustees; and the overall presentation of the financial statements. In addition,we read all the financial and non-financial information in the Trustees' report to identify material inconsistencieswith the audited financial statements and to identify any information that is apparently materially incorrect basedon, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If webecome aware of any apparent material misstatements or inconsistencies we consider the implications for ourreport.

Opinion on financial statements

In our opinion the financial statements:

give a true and fair view of the state of the charitable company's affairs as at 31 August 2016 and of its

incoming resources and application of resources, including its income and expenditure, for the year then

ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting

Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006, the Charities SORP

2015 and the Academies Accounts Direction 2015 to 2016 issued by the Education Funding Agency.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion the information given in the Trustees' report, incorporating the Strategic report, for the financialyear for which the financial statements are prepared is consistent with the financial statements.

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TEDDINGTON SCHOOL


Independent auditors' report on the financial statements to the members of Teddington School

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us toreport 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.

Alyson Howard FCCA DCha CF (Senior statutory auditor) for and on behalf of Williams Giles Limited

12 Conqueror CourtSittingbourneKentME10 5BHDate:

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Independent reporting auditors' assurance report on regularity to Teddington School and the EducationFunding Agency

In accordance with the terms of our engagement letter dated 1 July 2015 and further to the requirements of theEducation Funding Agency (EFA) as included in the Academies Accounts Direction 2015 to 2016, we havecarried out an engagement to obtain limited assurance about whether the expenditure disbursed and incomereceived by Teddington School during the year 1 September 2015 to 31 August 2016 have been applied to thepurposes identified by Parliament and the financial transactions conform to the authorities which govern them.

This report is made solely to Teddington School and the EFA in accordance with the terms of our engagementletter. Our work has been undertaken so that we might state to Teddington School and the EFA those matterswe are required to state in a report and for no other purpose. To the fullest extent permitted by law, we do notaccept or assume responsibility to anyone other than Teddington School and the EFA, for our work, for thisreport, or for the conclusion we have formed.

Respective responsibilities of Teddington School's accounting officer and the reporting auditors

The accounting officer is responsible, under the requirements of Teddington School's funding agreement withthe Secretary of State for Education dated 1 August 2012, and the Academies Financial Handbook extant from 1September 2015, for ensuring that expenditure disbursed and income received is applied for the purposesintended 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 ethicalguidance and are to obtain limited assurance and report in accordance with our engagement letter and therequirements of the Academies Accounts Direction 2015 to 2016. We report to you whether anything has cometo our attention in carrying out our work which suggests that in all material respects, expenditure disbursed andincome received during the year 1 September 2015 to 31 August 2016 have not been applied to purposesintended 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 2015 to 2016 issued bythe 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 andexplanations in order to provide us with sufficient appropriate evidence to express a negative conclusion onregularity.

A limited assurance engagement is more limited in scope than a reasonable assurance engagement andconsequently does not enable us to obtain assurance that we would become aware of all significant matters thatmight be identified in a reasonable assurance engagement. Accordingly, we do not express a positive opinion.

Our engagement includes examination, on a test basis, of evidence relevant to the regularity and propriety of theacademy's income and expenditure.

Page 22

Independent reporting auditors' assurance report on regularity to Teddington School and the EducationFunding Agency (continued)

Conclusion

In the course of our work, nothing has come to our attention which suggests that in all material respects theexpenditure disbursed and income received during the year 1 September 2015 to 31 August 2016 have not beenapplied to purposes intended by Parliament and the financial transactions do not conform to the authorities whichgovern them.

Alyson Howard FCCA CF (Senior statutory auditor) for and on behalf of Williams Giles Limited

12 Conqueror CourtSittingbourneKentME10 5BH

Date:

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Statement of financial activities incorporating income and expenditure accountFor the year ended 31 August 2016

Unrestrictedfunds

Restrictedfunds

Restrictedfixed asset

fundsTotal

fundsTotalfunds

Note2016

£2016

£2016

£2016

£2015

£

Income from:

Donations and capital grants 2 17,052 - 29,925 46,977 127,616Charitable activities 5 4,499 7,533,503 - 7,538,002 7,131,828Other trading activities 3 820,161 - - 820,161 954,163Investments 4 5,180 - - 5,180 6,000Other income 93,236 - - 93,236 -

Total income 940,128 7,533,503 29,925 8,503,556 8,219,607

Expenditure on:

Raising funds 799,061 - - 799,061 921,530Charitable activities - 7,852,437 896,079 8,748,516 8,533,508Other expenditure 82,466 - - 82,466 -

Total expenditure 8 881,527 7,852,437 896,079 9,630,043 9,455,038

Net income / (expenditure)before transfers 58,601 (318,934) (866,154) (1,126,487) (1,235,431)

Transfers between Funds 18 (112,300) 137,569 (25,269) - -

Net expenditure before otherrecognised gains and losses (53,699) (181,365) (891,423) (1,126,487) (1,235,431)

Actuarial losses on definedbenefit pension schemes 22 - (653,000) - (653,000) (39,000)

Net movement in funds (53,699) (834,365) (891,423) (1,779,487) (1,274,431)

Reconciliation of funds:

Total funds brought forward 558,701 (636,635) 46,265,553 46,187,619 47,462,050

Total funds carried forward505,002 (1,471,000) 45,374,130 44,408,132 46,187,619

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TEDDINGTON SCHOOL

(A company limited by guarantee)Registered number: 08130502

Balance sheetAs at 31 August 2016

2016 2015Note £ £ £ £

Fixed assets

Tangible assets 15 45,370,985 46,241,795

Current assets

Debtors 16 331,291 151,484

Cash at bank and in hand 622,139 1,024,108

953,430 1,175,592

Creditors: amounts falling due within oneyear 17 (445,283) (493,768)

Net current assets 508,147 681,824

Total assets less current liabilities 45,879,132 46,923,619

Defined benefit pension scheme liability 22 (1,471,000) (736,000)

Net assets including pension schemeliabilities 44,408,132 46,187,619

Funds of the academy

Restricted income funds:

Restricted income funds 18 - 99,365

Restricted fixed asset funds 18 45,374,130 46,265,553

Restricted income funds excluding pensionliability 45,374,130 46,364,918

Pension reserve (1,471,000) (736,000)

Total restricted income funds 43,903,130 45,628,918

Unrestricted income funds 18 505,002 558,701

Total funds 44,408,132 46,187,619

The financial statements were approved by the Trustees, and authorised for issue, on13 December 2016 andare signed on their behalf, by:

Jennifer JohnsonChair of Trustees

The notes on pages 27 to 44 form part of these financial statements.

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Statement of cash flowsFor the year ended 31 August 2016

2016 2015Note £ £

Cash flows from operating activities

Net cash used in operating activities 20 (411,806) (485,568)

Cash flows from investing activities:Dividends, interest and rents from investments 5,181 6,000Purchase of tangible fixed assets (25,269) (265,792)Capital grants from DfE/EFA 29,925 37,444Capital funding received from sponsors and others - 6,491

Net cash provided by/(used in) investing activities 9,837 (215,857)

Change in cash and cash equivalents in the year (401,969) (701,425)

Cash and cash equivalents brought forward 1,024,108 1,725,533

Cash and cash equivalents carried forward 21 622,139 1,024,108

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Notes to the financial statementsFor the year ended 31 August 2016

1. Accounting policies

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

1.1 Basis of preparation of financial statements

The financial statements of the academy trust, which is a public benefit entity under FRS 102, havebeen prepared under the historical cost convention in accordance with the Financial ReportingStandard Applicable in the UK and Republic of Ireland (FRS 102), the Accounting and Reporting byCharities: Statement of Recommended Practice applicable to charities preparing their accounts inaccordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (Charities SORP (FRS 102)), the Academies Accounts Direction 2015 to 2016 issued by EFA,the Charities Act 2011 and the Companies Act 2006.

Teddington School constitutes a public benefit entity as defined by FRS 102.

1.2 Fund accounting

Unrestricted income funds represent those resources which may be used towards meeting any ofthe charitable objects of the academy at the discretion of the Trustees.

Designated funds comprise unrestricted funds that have been set aside by the Trustees forparticular purposes. The aim and use of each designated fund is set out in the notes to the financialstatements.

Restricted fixed asset funds are resources which are to be applied to specific capital purposesimposed by the Department for Education where the asset acquired or created is held for a specificpurpose.

Restricted general funds comprise all other restricted funds received with restrictions imposed by thefunder and include grants from the Department for Education.

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1. Accounting policies (continued)

1.3 Income

All income is recognised once the academy has entitlement to the income, it is probable that theincome will be received and the amount of income receivable can be measured reliably.

Grants are included in the Statement of financial activities incorporating income and expenditureaccount on a receivable basis. The balance of income received for specific purposes but notexpended during the period is shown in the relevant funds on the Balance sheet. Where income isreceived in advance of entitlement of receipt, its recognition is deferred and included in creditors asdeferred income. Where entitlement occurs before income is received, the income is accrued.

General Annual Grant is recognised in full in the Statement of financial activities incorporatingincome and expenditure account in the year for which it is receivable and any abatement in respectof the period is deducted from income and recognised as a liability. Capital grants are recognisedwhen there is entitlement and are not deferred over the life of the asset on which they are expended.Unspent amounts of capital grant are reflected in the balance in the restricted fixed asset fund.

Sponsorship income provided to the academy which amounts to a donation is recognised in theStatement of financial activities incorporating income and expenditure account in the period in whichit is receivable, where there is certainty of receipt and it is measurable.

Donations are recognised on a receivable basis where there is certainty of receipt and the amountcan be reliably measured.

Other income, including the hire of facilities, is recognised in the period in which it is receivable andto the extent the goods have been provided or on completion of the service.

1.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economicbenefit to a third party, it is probable that a transfer of economic benefits will be required insettlement and the amount of the obligation can be measured reliably. Expenditure is classified byactivity. The costs of each activity are made up of the total of direct costs and shared costs,including support costs involved in undertaking each activity. Direct costs attributable to a singleactivity are allocated directly to that activity. Shared costs which contribute to more than one activityand support costs which are not attributable to a single activity are apportioned between thoseactivities on a basis consistent with the use of resources. Central staff costs are allocated on thebasis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred intrading activities that raise funds.

Charitable activities and Governance costs are costs incurred on the academy trust’s educationaloperations, including support costs and costs relating to the governance of the academy trustapportioned to charitable activities.

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1.5 Going concern

The Trustees assess whether the use of going concern is appropriate, i.e. whether there are anymaterial uncertainties related to events or conditions that may cast significant doubt on the ability ofthe academy to continue as a going concern. The Trustees make this assessment in respect of aperiod of at least one year from the date of authorisation for issue of the financial statements andhave concluded that the academy trust has adequate resources to continue in operational existencefor the foreseeable future and there are no material uncertainties about the academy trust’s ability tocontinue as a going concern, thus they continue to adopt the going concern basis of accounting inpreparing the financial statements..

1.6 Tangible fixed assets and depreciation

All assets costing more than £3,000 are capitalised.

Where tangible fixed assets have been acquired with the aid of specific grants, either from thegovernment or from the private sector, they are included in the Balance sheet at cost anddepreciated over their expected useful economic life. Where there are specific conditions attachedto the funding requiring the continued use of the asset, the related grants are credited to a restrictedfixed asset fund in the Statement of financial activities incorporating income and expenditureaccount and carried forward in the Balance sheet. Depreciation on the relevant assets is chargeddirectly to the restricted fixed asset fund in the Statement of financial activities incorporating incomeand expenditure account. Where tangible fixed assets have been acquired with unrestricted funds,depreciation on such assets is charged to the unrestricted fund.

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicatethat the carrying value of any fixed asset may not be recoverable. Shortfalls between the carryingvalue of fixed assets and their recoverable amounts are recognised as impairments. Impairmentlosses are recognised in the Statement of financial activities incorporating income and expenditureaccount.

Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment.Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimatedresidual value, over their expected useful lives on the following bases:

Long-term leasehold property - 50 years straight lineLeasehold land - Over the term of the leaseMotor vehicles - 10 years straight lineFixtures and fittings - 10 years straight lineComputer equipment - 4 years straight line

1.7 Operating leases

Rentals under operating leases are charged to the Statement of financial activities incorporatingincome and expenditure account on a straight line basis over the lease term.

1.8 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measuredreliably by the academy; this is normally upon notification of the interest paid or payable by the Bank.

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1.9 Taxation

The academy is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.Accordingly, the academy is potentially exempt from taxation in respect of income or capital gainsreceived within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains areapplied exclusively to charitable purposes.

1.10 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered.Prepayments are valued at the amount prepaid net of any trade discounts due.

1.11 Cash at Bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a shortmaturity of three months or less from the date of acquisition or opening of the deposit or similaraccount.

1.12 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a pastevent, it is probable that a transfer of economic benefit will be required in settlement, and theamount of the settlement can be estimated reliably. Liabilities are recognised at the amount that theacademy anticipates it will pay to settle the debt or the amount it has received as advancedpayments for the goods or services it must provide. Provisions are measured at the best estimate ofthe amounts required to settle the obligation. Where the effect of the time value of money ismaterial, the provision is based on the present value of those amounts, discounted at the pre-taxdiscount rate that reflects the risks specific to the liability. The unwinding of the discount isrecognised within interest payable and similar charges.

1.13 Pensions

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

The TPS is an unfunded scheme and contributions are calculated so as to spread the cost ofpensions over employees’ working lives with the academy in such a way that the pension cost is asubstantially level percentage of current and future pensionable payroll. The contributions aredetermined by the Government Actuary on the basis of quadrennial valuations using a prospectiveunit credit method. As stated in note 22, the TPS is a multi-employer scheme and there isinsufficient information available to use defined benefit accounting. The TPS is therefore treated asa defined contribution scheme for accounting purposes and the contributions recognised in theperiod to which they relate.

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The LGPS is a funded scheme and the assets are held separately from those of the academy trustin separate trustee administered funds. Pension scheme assets are measured at fair value andliabilities are measured on an actuarial basis using the projected unit credit method and discountedat a rate equivalent to the current rate of return on a high quality corporate bond of equivalent termand currency to the liabilities. The actuarial valuations are obtained at least triennially and areupdated at each Balance sheet date. The amounts charged to operating surplus are the currentservice costs and the costs of scheme introductions, benefit changes, settlements and curtailments.They are included as part of staff costs as incurred. Net interest on the net defined benefitliability/asset is also recognised in the Statement of financial activities incorporating income andexpenditure account and comprises the interest cost on the defined benefit obligation and interestincome on the scheme assets, calculated by multiplying the fair value of the scheme assets at thebeginning of the period by the rate used to discount the benefit obligations. The difference betweenthe interest income on the scheme assets and the actual return on the scheme assets is recognisedin other recognised gains and losses.

Actuarial gains and losses are recognised immediately in other recognised gains and losses

1.14 Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience andother factors, including expectations of future events that are believed to be reasonable under thecircumstances.

Critical accounting estimates and assumptions:

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

The present value of the Local Government Pension Scheme defined benefit liability depends on anumber of factors that are determined on an actuarial basis using a variety of assumptions. Theassumptions used in determining the net cost (income) for pensions include the discount rate. Anychanges in these assumptions, which are disclosed in note 22, will impact the carrying amount of thepension liability. Furthermore a roll forward approach which projects results from the latest fullactuarial valuation performed at 31 August 2016 has been used by the actuary in valuing thepensions liability at 31 August 2016. Any differences between the figures derived from the rollforward approach and a full actuarial valuation would impact on the carrying amount of the pensionliability.

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2. Income from donations and capital grants

Unrestrictedfunds

Restrictedfunds


fundsTotal

funds

As restatedTotalfunds

2016£

2016£

2016£

2016£

2015£

Other donation income 17,052 - - 17,052 56,849Donation income from local

authorities - - - - 33,323DfE/EFA capital grants - - 29,925 29,925 37,444

Total donations and capitalgrants 17,052 - 29,925 46,977 127,616

In 2015, of the total income from donations and capital grants, £50,358 was to unrestricted funds and£77,258 was to restricted funds

3. Other trading activities

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2016£

2016£

2016£

2015£

Hire of facilities 3,603 - 3,603 4,909Income from recharge of services 50,429 - 50,429 38,687Catering Income 545,946 - 545,946 540,823Academy trust fund income 220,183 - 220,183 356,357Insurance reclaim - - - 13,387

820,161 - 820,161 954,163

In 2015, of the total income from other trading activities, £940,776 was to unrestricted funds and £13,387was to restricted funds.

4. Investment income

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2016£

2016£

2016£

2015£

Investment income - local cash 5,180 - 5,180 6,000

In 2015, of the total investment income, £6,000 was to unrestricted funds and £ NIL was to restrictedfunds.

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5. Funding for Academy's educational operations

Unrestrictedfunds

Restrictedfunds

Totalfunds

As restatedTotalfunds

2016£

2016£

2016£

2015£

DfE/EFA grants

General Annual Grant (GAG) - 7,061,800 7,061,800 6,681,504Other DfE/EFA grants - 75,139 75,139 115,669Pupil Premium - 155,252 155,252 207,616

- 7,292,191 7,292,191 7,004,789

Other government grants

Local authority grants - 204,970 204,970 116,575Other Academy Trust Income - 36,342 36,342 10,464

- 241,312 241,312 127,039

Other funding

Other income 4,499 - 4,499 -

4,499 - 4,499 -

4,499 7,533,503 7,538,002 7,131,828

In 2015, of the total income from charitable activities, £ NIL was to unrestricted funds and £7,131,828was to restricted funds.

6. Direct costs

EducationalOperations

Total2016

As restatedTotal2015

£ £ £

Educational supplies 151,941 151,941 214,757Examination fees 110,067 110,067 105,838Staff development 70,591 70,591 84,625Educational consultancy 45,922 45,922 46,999Other direct costs 372,440 372,440 342,417Recruitment and support 17,620 17,620 -Wages and salaries 4,001,362 4,001,362 3,854,753National insurance 350,820 350,820 327,374Pension cost 636,006 636,006 540,134

5,756,769 5,756,769 5,516,897

In 2015, the academy incurred the following Direct costs:

£5,516,897 in respect of Educational Operations

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7. Support costs

EducationalOperations

Total2016

As restatedTotal2015

£ £ £

Pension income 24,000 24,000 24,000Recruitment and support 55,849 55,849 80,084Maintenance of premises and equipment 175,278 175,278 203,477Cleaning 127,563 127,563 171,403Rent & rates 77,491 77,491 65,819Light & heat 167,842 167,842 158,332Insurance 39,953 39,953 67,491Security & transport 15,368 15,368 46,049Catering 33,185 33,185 30,846Interest and charges 528 528 106Computer costs 137,661 137,661 86,955Other support costs 239,768 239,768 231,442Governance Costs 23,462 23,462 22,878Wages and salaries 720,519 720,519 720,829National insurance 54,679 54,679 45,502Pension cost 202,523 202,523 182,557Depreciation 896,078 896,078 878,790

2,991,747 2,991,747 3,016,560

During the year ended 31 August 2016, the academy incurred the following Governance costs:

£23,462 (2015 - £22,929) included within the table above in respect of Educational Operations.

In 2015, the academy incurred the following Support costs:

£3,016,560 in respect of Educational Operations

8. Expenditure

Staff costs Premises Other costs TotalAs restated

Total2016

£2016

£2016

£2016

£2015

£

Expenditure on raisingvoluntary income - - 799,061 799,061 921,530

Activities: Direct costs 4,988,188 - 768,581 5,756,769 5,516,897 Support costs 977,721 1,071,356 942,670 2,991,747 2,992,611

5,965,909 1,071,356 2,510,312 9,547,577 9,431,038

In 2016, of the total expenditure, £881,527 (£921,530) was to unrestricted funds and£8,748,516 (2015 - £8,509,508) was was to restricted funds.

Also not included in the above is other expediture in the sum of £82,466 (2015 - £Nil).

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9. Net incoming resources/(resources expended)

This is stated after charging:

2016 2015 £ £

Depreciation of tangible fixed assets:- owned by the charity 896,079 878,790

10. Auditors' remuneration

As restated 2016 2015

£ £

Fees payable to the academy's auditor for the audit of theacademy's annual accounts 10,000 10,000

Fees payable to the academy's auditor in respect of:Audit-related assurance services 1,425 2,075Internal audit services 2,850 2,850All other non-audit services not included above 4,450 3,300

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11. Staff costs

Staff costs were as follows:

2016 2015 £ £

Wages and salaries 4,721,881 4,575,582Social security costs 405,499 372,876Operating costs of defined benefit pension schemes 838,529 722,691

5,965,909 5,671,149Other costs - 371,973

5,965,909 6,043,122

The average number of persons employed by the academy during the year was as follows:

2016 2015 No. No.

Teaching 85 78Administration and support 48 54Management 10 9

143 141

Average headcount expressed as a full time equivalent:

2016 2015 No. No.

The number of employees whose employee benefits (excluding employer pension costs) exceeded£60,000 was:

2016 2015 No. No.

In the band £60,001 - £70,000 1 0In the band £70,001 - £80,000 2 1In the band £110,001 - £120,000 0 1In the band £120,000 - £130,000 1 0

Four (2015 - one) of the above employees participated in the Teachers Pension Scheme and noemployee (2015 - none) in the Local Government Pension Scheme. During the year ended 31 August2015 pension contributions for these staff amounted to £54,366 (2015 - £25,939) and £Nil (2015 - £nil)respectively.

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12. Trustees' remuneration and expenses

One or more Trustees has been paid remuneration or has received other benefits from an employmentwith the academy trust. The Principal and other staff Trustees only receive remuneration in respect ofservices they provide undertaking the roles of principal and other staff members under their contracts ofemployment, and not in respect of their role as Trustees, The value of Trustees' remuneration and otherbenefits was as follows:

2016 2015 £ £

John Wilkinson RemunerationPension contributions paid

120,000-125,00020,000-25,000

110,000-115,00015,000-20,000

Sarah Tate RemunerationPension contributions paid

45,000-50,0005,000-10,000

45,000-50,0005,000-10,000

Nicola Harrison RemunerationPension contributions paid

35,000-40,0005,000-10,000

30,000-35,0005,000-10,000

Susan Phillips RemunerationPension contributions paid

30,000-35,0005,000-10,000

30,000-35,0005,000-10,000

During the year, no Trustees received any reimbursement of expenses (2015 - £3,288).

13. Trustees' and Officers' Insurance

In accordance with normal commercial practice the academy has purchased insurance to protect Trusteesand officers from claims arising from negligent acts, errors or omissions occurring whilst on acdemybusiness. The insurance provides cover up to £30,000,000 on any one claim. The cost of this insuranceis included in the total insurance cost.

14. Other finance income

2016 2015 £ £

Interest income on pension scheme assets (24,000) 92,000Interest on pension scheme liabilities - (116,000)

(24,000) (24,000)

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15. Tangible fixed assets

Long-termleasehold

propertyMotor

vehicles

Fixtures,fittings andequipment Total

£ £ £ £

Cost

At 1 September 2015 47,822,886 38,570 1,012,892 48,874,348Additions 25,269 - - 25,269

At 31 August 2016 47,848,155 38,570 1,012,892 48,899,617

Depreciation

At 1 September 2015 2,158,755 4,714 469,084 2,632,553Charge for the year 752,103 3,858 140,118 896,079

At 31 August 2016 2,910,858 8,572 609,202 3,528,632

Net book value

At 31 August 2016 44,937,297 29,998 403,690 45,370,985

At 31 August 2015 45,664,131 33,856 543,808 46,241,795

16. Debtors

2016 2015 £ £

Trade debtors 20,062 718Other debtors 79,653 38,159Prepayments and accrued income 231,576 112,607

331,291 151,484

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17. Creditors: Amounts falling due within one year

2016 2015 £ £

Trade creditors 22,136 91,427Other taxation and social security 128,713 106,097Other creditors 98,879 86,310Accruals and deferred income 195,555 209,934

445,283 493,768

2016 2015 £ £

Deferred income

Deferred income at 1 September 2015 28,785 28,785

At the balance sheet date the academy trust was holding funds received in advance in respect of schooltrip income and other funding received in advance.

18. Statement of funds

BroughtForward Income Expenditure

Transfersin/out

Gains/(Losses)

CarriedForward

£ £ £ £ £ £

Unrestrictedfunds

Unrestricted fund 548,701 940,128 (881,527) (112,300) - 495,002Designated sixth

form fund 10,000 - - - - 10,000

558,701 940,128 (881,527) (112,300) - 505,002

Restricted funds

General AnnualGrant 99,365 7,061,799 (7,298,733) 137,569 - -

Pupil Premium - 155,252 (155,252) - - -Other DfE/EFA

grants - 75,139 (75,139) - - -Local authority

grants - 204,971 (204,971) - - -Other restricted

fincome - 36,342 (36,342) - - -Pension reserve (736,000) - (82,000) - (653,000) (1,471,000)

(636,635) 7,533,503 (7,852,437) 137,569 (653,000) (1,471,000)

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18. Statement of funds (continued)

Restricted fixed asset fund

Inherited fixedassets 42,209,493 - (749,899) - - 41,459,594

DfE/EFA capitalgrants 23,761 29,925 (505) (25,269) - 27,912

Other donationincome 4,032,299 - (145,675) - - 3,886,624

46,265,553 29,925 (896,079) (25,269) - 45,374,130

Total restrictedfunds 45,628,918 7,563,428 (8,748,516) 112,300 (653,000) 43,903,130

Total of funds 46,187,619 8,503,556 (9,630,043) - (653,000) 44,408,132

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

The General Annual Grant (GAG) represents the core funding for the educational activities of theAcademy Trust that has been provided to the Academy Trust via the Education Funding Agency by theDepartment for Education. The General Annual Grant Fund has been set up because the GAG must beused for the normal running costs of the Academy Trust.

19. Analysis of net assets between funds

Unrestrictedfunds

Restrictedfunds


fundsTotal

fundsTotalfunds

2016£

2016£

2016£

2016£

2015£

Tangible fixed assets - - 45,370,987 45,370,987 46,241,792Current assets 505,002 445,283 3,143 953,428 1,175,595Creditors due within one year - (445,283) - (445,283) (493,768)Provisions for liabilities and

charges - (1,471,000) - (1,471,000) (736,000)

505,002 (1,471,000) 45,374,130 44,408,132 46,187,619

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20. Reconciliation of net movement in funds to net cash flow from operating activities

2016 2015 £ £

Net expenditure for the year (as per Statement of financialactivities) (1,126,487) (1,235,431)

Adjustment for:Depreciation charges 896,079 878,790Dividends, interest and rents from investments (5,181) (6,000)(Increase)/decrease in debtors (179,807) 351,876Decrease in creditors (48,485) (504,868)Capital grants from DfE and other capital income (29,925) (43,935)Defined benefit pension scheme finance cost 82,000 74,000

Net cash used in operating activities (411,806) (485,568)

21. Analysis of cash and cash equivalents

2016 2015 £ £

Cash in hand 622,139 1,024,108

Total 622,139 1,024,108

22. Pension commitments

The academy's employees belong to two principal pension schemes: the Teacher's Pension Scheme forEngland and Wales (TPS) for academic and related staff; and the Local Government Pension Scheme(LGPS) for non-teaching staff, which is managed by Hyman Robertson. Both are Multi-employer definedbenefit pension schemes.

The latest actuarial valuation of the TPS related to the period ended 31 March 2012 and of the LGPS 31August 2016.

Contributions amounting to £97,601 were payable to the schemes at 31 August 2016 (2015 - 84,819) andare included within creditors.

Teachers' Pension Scheme

Introduction

The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed bythe Teachers' Pensions Regulations (2010) and, from 1 April 2014, by the Teachers' Pension SchemeRegulations 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, althoughthey are able to opt out.

The TPS is an unfunded scheme and members contribute on a ‘pay as you go’ basis – these contributionsalong with those made by employers are credited to the Exchequer. Retirement and other pensionbenefits are paid by public funds provided by Parliament.

Valuation of the Teachers’ Pension Scheme

Not less than every four years the Government Actuary, using normal actuarial principles, conducts aformal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and

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22. Pension commitments (continued)

Employer Cost Cap) Directions 2014 published by HM Treasury. The aim of the review is to specify thelevel of future contributions. Actuarial scheme valuations are dependent on assumptions about the valueof future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS wascarried out as at 31 March 2012 and in accordance with the Public Service Pensions (Valuations andEmployer Cost Cap) Directions 2014. The valuation report was published by the Department for Educationon 9 June 2014. The key elements of the valuation and subsequent consultation are:

employer contribution rates set at 16.48% of pensionable pay, including a 0.08% employeradministration charge (currently 14.1%)

total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) forservice to the effective date of £191,500 million, and notional assets (estimated future contributionstogether with the notional investments held at the valuation date) of £176,600 million giving a notionalpast service deficit of £14,900 million

an employer cost cap of 10.9% of pensionable pay will be applied to future valuations

the assumed real rate of return is 3.0% in excess of prices and 2% in excess of earnings. The rate ofreal earnings growth is assumed to be 2.75%. The assumed nominal rate of return is 5.06%.

During the previous year the employer contribution rate was 14.1%. The TPS valuation for 2012determined an employer rate of 16.4%, which was payable from September 2015. The next valuation ofthe TPS will be as at March 2016, whereupon the employer contribution rate is expected to be reassessedand will be payable from 1 April 2019.

The employer’s pension costs paid to TPS in the period amounted to £560,000 (2015 - £497,000).

A copy of the valuation report and supporting documentation is on the Teachers’ Pensions website(www.teacherspensions.co.uk/news/employers/2014/06/publication-of-the-valuation-report.aspx).

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

Local Government Pension Scheme

The LGPS is a funded defined benefit scheme, with assets held in separate trustee-administered funds.The total contribution made for the year ended 31 August 2016 was £279,000 (2015 - £292,000), of whichemployer's contributions totalled £214,000 (2015 - £226,000) and employees' contributions totalled£65,000 (2015 - £66,000). The agreed contribution rates for future years are 20.5% for employers andvariable% for employees.

Parliament has agreed, at the request of the Secretary of State for Education, to a guarantee that, in theevent of academy closure, outstanding Local Government Pension Scheme liabilities would be met by theDepartment for Education. The guarantee came into force on 18 July 2013.Principal actuarial assumptions:

2016 2015

Discount rate for scheme liabilities %2.20 %3.70Expected return on scheme assets at 31 August %2.20 %3.70Rate of increase in salaries %3.20 %3.50Rate of increase for pensions in payment / inflation %2.30 %2.60Inflation assumption (CPI) %2.30 %2.60

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The current mortality assumptions include sufficient allowance for future improvements in mortality rates.The assumed life expectations on retirement age 65 are:

2016 2015

Retiring todayMales 22.2 22.2Females 24.4 24.4

Retiring in 20 yearsMales 24.3 24.3Females 26.9 26.9

The academy's share of the assets in the scheme was:

Fair value at Fair value at31 August 31 August

2016 2015£ £

Equities 1,949,000 1,531,000Debt instruments 749,000 457,000Property 309,000 295,000CashGilts

32,000206,000

403,000-

Total market value of assets 3,245,000 2,686,000

The actual return on scheme assets was £421,000 (2015 - £73,000).

The amounts recognised in the Statement of financial activities incorporating income and expenditureaccount are as follows:

2016 2015 £ £

Current service cost (net of employee contributions) (272,000) (276,000)Net interest cost (24,000) (24,000)

Total (296,000) (300,000)

Actual return on scheme assets 421,000 73,000

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Movements in the present value of the defined benefit obligation were as follows:

2016 2015 £ £

Opening defined benefit obligation 3,422,000 3,004,000Current service cost 272,000 276,000Interest cost 125,000 116,000Contributions by employees 65,000 66,000Actuarial losses 972,000 20,000Benefits paid (140,000) (60,000)

Closing defined benefit obligation 4,716,000 3,422,000

Movements in the fair value of the academy's share of scheme assets:

2016 2015 £ £

Opening fair value of scheme assets 2,686,000 2,381,000Interest income 101,000 92,000Actuarial gains and (losses) 319,000 (19,000)Contributions by employer 214,000 226,000Contributions by employees 65,000 66,000Benefits paid (140,000) (60,000)

Closing fair value of scheme assets 3,245,000 2,686,000

23. Operating lease commitments

At 31 August 2016 the total of the Academy trust’s future minimum lease payments under non-cancellableoperating leases was:

2016 2015£ £

Amounts payable:

Within 1 year 11,800 5,680Between 1 and 5 years 16,350 473

Total 28,150 6,153

24. Related party transactions

No related party transactions took place in the period of account, other than certain trustees’ remunerationand expenses already disclosed in note 12.

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25. Members' liability

Each member of the charitable company undertakes to contribute to the assets of the company in theevent of it being wound up while he/she is a member, or within one year after he/she ceases to be amember, such amount as may be required, not exceeding £ 10 for the debts and liabilities contractedbefore he/she ceases to be a member.

26. First time adoption of FRS 102

It is the first year that the Academy Trust has presented its financial statements under SORP 2015 andFRS 102. The following disclosures are required in the year of transition. The last financial statementsprepared under previous UK GAAP were for the year ended 31 August 2015 and the date of transition toFRS 102 and SORP 2015 was therefore 1 September 2014. As a consequence of adopting FRS 102 andSORP 2015, a number of accounting policies have changed to comply with those standards.

The policies applied under the academy's previous accounting framework are not materially different toFRS 102 and have not impacted on funds or net income/expenditure.

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