the complementary education academy limited · senior management team mrs roberta kelly -...

Company Registration Number: 08190591 (England & Wales)

THE COMPLEMENTARY EDUCATION ACADEMY LIMITED(A Company Limited by Guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2019


CONTENTS

Page

Reference and Administrative Details

1 - 2

Trustees' Report

3 - 13

Governance Statement

14 - 18

Statement on Regularity, Propriety and Compliance

19

Statement of Trustees' Responsibilities

20

Independent Auditors' Report on the Financial Statements

21 - 23

Independent Reporting Accountant's Report on Regularity

24 - 25

Statement of Financial Activities Incorporating Income and Expenditure Account

26 - 27

Balance Sheet

28

Statement of Cash Flows

29

Notes to the Financial Statements

30 - 54

THE COMPLEMENTARY EDUCATION ACADEMY (A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS


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Members Mr Stephen Jones –resigned 21st August 2019 Mrs Jill Sneddon Mrs Jaine ThorntonWeeks Mr John Sleet Mr Philip Burch Mrs Jill Timms Trustees Mr John Sleet -Trustee and Governor - Chair of Trustees

Mr Bernard Ingram -Trustee and Governor - Chair of Governors

Mr Philip Burch - Trustee and Governor Mrs Jill Timms - Trustee and Governor Mrs Roberta Kelly – Headteacher and Accounting Officer Mrs Jill Sneddon - Trustee (resigned as Trustee 26th November 2018) Company Secretary Mrs Roberta Kelly Senior Management Team Mrs Roberta Kelly - Headteacher

Mr James Thomas - Deputy Headteacher

Ms Louisa Bridger - Assistant Headteacher Mr Adrian Davy - Assistant Headteacher Mrs Annette Tuck - Director of Finance and Administration Company Name The Complementary Education Academy Limited Principal and Registered Office Cromwell Campus Poole Street Northampton NN Company registered number 08190591 (England & Wales) Independent Auditor MHA MacIntyre Hudson, 71 New Dover Road Canterbury Kent CT1 3DZ


REFERENCE AND ADMINISTRATIVE DETAILS (CONTINUED)


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Bankers Lloyds Bank Plc, George Row Northampton NN1 1DJ Solicitors Veale Wasbrough Vizards LLP Narrow Quay House, Narrow Quay, Bristol BS1 4QA.


TRUSTEES’ REPORT


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The Trustees present their annual report together with the financial statements and auditor’s report of the charitable company for the year 1st September 2018 to 31st August 2019. The annual report serves the purposes of both a trustees’ report, and a directors’ report under company law. The Academy Trust operates an academy for pupils aged 11 to 16 serving the catchment area of Northamptonshire. It has a pupil capacity of 230 and had a roll of 224 in the school census on 16th May 2019. STRUCTURE, GOVERNANCE AND MANAGEMENT Constitution The Academy Trust 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 Complementary Education Academy Trust Limited are also the directors of the charitable company for the purposes of company law. The charitable company operates as an Alternative Provision Academy. The Charitable Company is known as The Complementary Education Academy Ltd. The Complementary Education Academy is also known as The CE Academy. The Company carries on the business of a Pupil Referral Unit (PRU) as an Alternative Provision Academy (AP). Details of the trustees who served during the year, and to the date these accounts are approved are included in the Reference and Administrative Details on pages 1 and 2. Members’ Liability Each member of the charitable company undertakes to contribute to the assets of the charitable company in the event of it being wound up while they are a member, or within one year after they cease to be a member, such amount as may be required, not exceeding £10 for the debts and liabilities contracted before they ceased to be a member Trustees’ Indemnities Trustees benefit from indemnity insurance provided through RPA to cover the liability of the Trustees which by virtue of any rule of law would otherwise attach to them in respect of any negligence, default or breach of trust or breach of duty of which they may be guilty in relation to the Academy Trust. The cost of this insurance in the year was £4,600. Method of Recruitment and Appointment or Election of Trustees As laid down in Sections 45-67a of the Articles of Association the number of Directors shall be not less than three but (unless otherwise determined by ordinary resolution) shall not be subject to any maximum: (a) 4 Community Trustees/Governors (b) 1 FE Trustee/Governor (c) 1 local Executive Headteacher Trustees/Governor (d) 1 Parent Trustee/Governor (e) 1 Staff Trustee/Governor (f) The Headteacher Each of the persons entitled to appoint members above shall have the right, from time to time by written notice delivered to the office, to remove any member appointed by them and to appoint a replacement member to fill a vacancy whether resulting from such removal or otherwise.


TRUSTEES’ REPORT (CONTINUED)


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Before conversion members of the PRU Management Committee encouraged the transfer to Academy status and transferred to the new Board of Trustees/Governing Body. Other Professionals with an interest in Alternative Provision were invited by the Headteacher to join. Northamptonshire Multi Academy Trusts are approached by Trustees to provide Secondary Head teacher representation. Parents/carers are asked by Trustees to nominate parent governors. Policies and Procedures Adopted for the Induction and Training of Trustees. The training and induction provided for each new Trustee will depend on their existing experience. All Trustees/Governors have an introductory session with the Headteacher. Additional training is available and Trustees/Governors are regularly notified of courses offered by the LA and other providers. Trustees/Governors are invited to relevant in-house training. A log is kept of Trustee/Governor training and is reviewed annually. All Trustees/Governors are provided with copies of policies, procedures, minutes, accounts, budgets, plans and other documents that they will need to undertake their role as Trustees/Governors. Trustees/Governors receive monthly financial management reports (budget v commitment, SOFA, balance sheet & cash flow). All Trustees/Governors have access to the staff side of the CE Academy website for access to all policies and procedures. A skills audit has been undertaken and knowledge, strengths and experience of Trustees/Governors identified. Organisational Structure The Academy’s Headteacher is the Accounting Officer. Her main task is to execute the policies agreed by the Academy in relation to its education functions and to bring forward for approval, proposals for further improving the quality of educational experience of the Academy’s young people. The Academy’s Board of Trustees/Governing Body has delegated the Headteacher extensive power to make decisions quickly and efficiently in respect of the Headteacher’s responsibilities. A School Leadership Team consisting of a Deputy Headteacher, 2 Assistant Headteachers and Business Manager support the Headteacher in managing the Academy. The Trustees/Governors ensure good governance and determine the general policies of the Academy. The size of the Academy does not necessitate specialist sub-committees. However a Finance sub-committee has been established. The Finance sub-committee reports to the full Board of Trustees/Governing Body giving detailed information. Trustees/Governors are responsible for ensuring the budget is completed to meet statutory financial obligations and a viable business is maintained.




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From September 2020 the Finance sub-committee has new terms of reference having more responsibilities as the Finance and Audit Committee. Arrangements for setting pay and remuneration of key management personnel The Senior Leadership Team is paid in line with the School Teachers’ Conditions of Service and/or NJC pay and conditions of service. All roles were benchmarked before conversion. The Academy compares its staffing costs in order to ensure it is in line with similar establishments. The Trustees and Governors oversee the remuneration of Key Management Personnel. The Chair of Governors undertakes the Performance Management of the Headteacher/Accounting Officer and makes recommendation to the Board of Trustees along with evidence of targets met. The Headteacher alongside the Chair of Governors undertakes Performance Management of the Senior Leadership Team and makes recommendation to the Board. Trade union facility time No member of the CE Academy Trust staff is a trade union representative. However, The CE Academy contributes to Northamptonshire Schools Trade Union Facilities Time as arranged by Northamptonshire County Council. The cost is determined by the number of pupils on roll. Cost for financial year 2018-2019 was £483. Related Parties and other Connected Charities and Organisations There are no related parties which either control or significantly influence the decisions and operations of the CE Academy Trust. There are no sponsors or formal Parent Teacher Associations associated with the Academy. OBJECTIVES AND ACTIVITIES Objects and Aims Ø To provide a broad and balanced education for 11-16 aged children permanently excluded from schools

or at risk or exclusion from mainstream/special schools and for school-age mothers. Ø To make specially organised provision for pupils with special educational needs. Ø To raise the standard of educational achievement of all pupils. Ø To improve the effectiveness of the Academy by keeping the curriculum and organisational structure

under continual review. Ø To comply with statutory curriculum requirements. Ø To improve pupils’ life chances by ensuring they have a positive outcome/destination at the end of

Year 11. Ø To provide value for money. Ø To conduct the Academy’s business in accordance with the highest standards of integrity, probity and

openness. Ø To be committed to child protection and promoting the welfare of children and young people.




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Objectives, Strategies and Activities Ø The young people are at the centre of everything we do, all decisions are considered in relation to the

impact on the young people. Ø The Complementary Education Academy will continue to provide education for KS3 and KS4 young

people at risk of exclusion, permanently excluded and school-age mothers. Ø To make specially organised provision for pupils with special educational needs. Ø To provide tuition and learning opportunities for all students to attain appropriate academic qualifications. Ø A priority is to continue to raise the GCSE grades and numbers of entries. Ø To provide the widest possible range of activities. Ø The Academy is committed to making improvements for the benefit of the young people. Ø The Academy is committed to being open and trusting. Ø To have a culture that cares for the individual, both staff and pupils, and promotes inclusivity, equality and

mutual respect. Ø A careers advice and education programme to help students obtain employment or move onto further and

higher education. Ø To provide C&G vocational qualifications in Catering, Hair and beauty. Ø The Academy continues to promote its work with schools and to increase the proportion of the intake ‘at

risk of exclusion’ rather than permanently excluded. Ø The Academy will maintain sufficient reserves to secure against identified risks – in particular the recently

opened AP provision in Northampton and the proposed AP Free school – Spires Academy due to open to KS4 young people in 2020-21.

Ø All staff are given opportunities for further training.

Public Benefit The Trustees have referred to the public benefit guidance contained in part 1, section 4 of the Charities Act 2006 and the SORP 2015 to have due regard to the Charity Commission’s published general and relevant guidance when they have reviewed the Academy’s aims and objectives. This has been used in planning future activities to ensure the primary objective of the Academy is achieved rather than providing a financial return. The Trustees recognise that equal opportunities should be an integral part of good practice within the workplace. The Academy Trust aims to establish equal opportunity in all areas of its activities including creating a working environment in which the contribution and needs of all people are fully valued.




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STRATEGIC REPORT Achievements and Performance Another good year for CE Academy: the most significant event, being the ‘Outstanding’ judgement from Ofsted. This is the Academy’s fourth consecutive ‘Outstanding’ judgement. CE continues to work with vulnerable pupils who have experienced disruptions to their schooling through exclusion, attendance concerns and pregnancy.

Key Stage 3 and Key Stage 4 pupils can be referred to the CE Academy via the pupil's school or Local Authority. Parents can use either of these channels to request a referral for their child but not directly through the Academy. Permanently excluded pupils should be referred via Educational Inclusion and Partnerships (EIP). Pupils at risk of exclusion, pregnant or school age mothers and dual registered pupils can be referred directly to the Academy by mainstream schools. Referrals are considered from Northamptonshire EIP and other local authorities.

In all cases a CE referral form should be completed. This can be found on the Information for Schools page on the Academy website at: www.ce-academy.org.

Between 50 – 60 per cent of pupils who are referred to The CE Academy are in receipt of Pupil Premium funding. Therefore this cohort has a significant impact on the results achieved in our GCSE examinations. In 2019 45% of the cohort who sat GCSE examinations were in receipt of Pupil Premium. This is slightly up on last academic year. Inevitably there is a strong correlation between school attendance and achievement. Therefore improving attendance to school is vital in our quest to ensure that being excluded from school does not have a negative impact on a young person’s life chances. Therefore a major challenge remains that high percentages (82.3% in 2019) of pupils referred to The CE Academy are already designated as being persistently absent from school. This is significantly higher than the referrals to Alternative provision Schools nationally (70.7%) and illustrates the difficulties we face in changing habits and improving attendance. Pupils designated as persistently absent falls from 82.3 % on referral to 52.8% at The CE Academy. (A reduction of 30%) Key tutors and campus secretaries take the lead in promoting and encouraging positive attendance and punctuality. Where pupils have to travel to a new venue school staff will often make the journey with them on their first day or meet them from the bus stop (helping to alleviate anxieties) Alongside the academic curriculum CE continues to offer both internal and external vocational opportunities that enable us to focus on pupil strengths and offer a variety of opportunities. There is also opportunity for therapeutic input including the work of the Occupational Therapist. Extra-curricular activities have included trips to theatres to see coursework related plays and also just to give an opportunity for a theatre experience. Staff have also taken advantage of the annual free cinema tickets advertised to encourage young people to appreciate film. Another large cohort of Year 11 pupil (95) sat their examinations in summer 2019. The Academy has again enabled pupils to gain as many GCSE qualifications as possible, and has an increased cohort of pupils achieving GCSE’s in both Critical Studies and English Literature. In addition a high percentage of pupils undertook

http://www.ce-academy.org




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vocational courses in a variety of subjects including Equine Learning, Motor Vehicle, Hair and Beauty, Catering and Hospitality, Fishing and Photography. In total 62% of pupils achieved at least one vocational qualification (with several achieving in more than one subject area). “Leaders are committed to teaching all the subjects of the national curriculum to enable pupils to achieve the best possible outcomes at GCSE” (Ofsted March 2019) The needs of our pupils continue to be complex in nature. All pupils have experienced disruptions to their schooling through, exclusion, attendance concerns and pregnancy. Additionally several are in the care system (often moving placements several times) and a high percentage of families work with safeguarding professionals and mental health professionals. “Arrangements and procedures for safeguarding are robust and fit for purpose,” (Ofsted March 2019) In 2019 66% of pupils were in receipt of Pupil Premium and 83% were designated as persistently absent at their mainstream school. These pupils vary significantly in their academic ability, motivation, attitude to work, prior learning and ability to engage with the curriculum (70.7%) and illustrates the difficulties we face in changing habits and improving attendance. “Staff communicate well with parents, contacting them immediately when there are any concerns” (Ofsted March 2019) “The academy works closely with parents to address issues at home which affect pupils’ attendance and achievement” (Ofsted March 2019) In 2018-19 CE Academy has once again been successful in reintegrating 29 pupils into County schools and has also seen a continued steady increase in the number of pupils gaining EHCPs and transferring to specialist provision. Dual registrations with local mainstream schools continue to form a large part of the work of the Academy. There are now established partnerships with several local schools who refer pupils either for short term intervention (usually at KS3) or on longer-term agreements (to complete their KS4 education). Some schools also refer young people for a full assessment of need and an application for an EHCP. “A significant number of pupils are successfully reintegrated into mainstream schools during key stage 3. Some, with special educational needs and/or disabilities (SEND), are found appropriate placements in specialist provisions, following statutory assessment” (Ofsted March 2019) A market stall just before Christmas gave young people an opportunity to raise funds for Macmillan Cancer Support.

Year 11 pupils enjoyed the fourth successful CE Prom. A committee of young people contributed to the planning and organisation and The Kitchen at Spring Gardens, The CE Catering and Hospitality training facility, provided an excellent buffet. There were successful residential trips to Govilon by KS3 and KS4 groups. Some young people benefitted from entry into a Rotary Club art competition and were pleased and surprised to be awarded prizes. Art staff organised an exhibition of GCSE coursework at Delapre Abbey. The very impressive exhibition enabled young people to visit on Friday to encourage them to be inspired by the work of their peers. It was then open to the public on Saturday and Sunday and enabled young people to visit with family and friends.




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Staff and young people have worked hard this year. CE Academy continues to be an important part of many young people’s lives; in particular providing consistency and support to young people struggling and often including their families and carers. Key Performance Indicators In March 2019 The CE Academy was judged Outstanding by Ofsted - this was the fourth consecutive Outstanding judgement Two inspectors visited and managed to see all but one of the campuses. They talked to staff, young people and representatives from our partner providers. Despite an initial scepticism about our policy of not using restraint, at the end of the inspection they acknowledged that it is genuine and facilitated through excellent relationships with the young people. It is clear that this is unusual in an education establishment working with young people experiencing social, emotional and behavioural difficulties. “Key to the academy’s success are the excellent relationships between pupils and staff, and the in-depth knowledge of every individual. From when they start, pupils grow in confidence due to encouragement and positive feedback from staff. The academy’s campuses are bright and well maintained” Ofsted 2019 The report contains praise for management, teachers, and the curriculum. It talks of the excellent relationships between staff and pupils and recognises that young people attending CE Academy achieve better GCSE results overall than pupils in other alternative provisions. “The leadership team has maintained the outstanding quality of education in the school since the last inspection. You distribute leadership very effectively across the eight campuses in the academy. This ensures that all pupils benefit from the highly personalised and consistent approaches used” (Ofsted March 2019) The report gives The Academy just one ‘Next Step’, which is to explore appropriate work-experience placements for pupils. A member of staff agreed to change her role to take on this work. She is pursuing Careers Education training at a local college and has already begun her new role. There is already evidence of success. A number of young people have had work experience placements and two secured apprenticeships as a result of their placements. Once again we have witnessed our pupils achieving well in their GCSE examinations, with 81% of pupils achieving a pass (9 - 1) in English and mathematics (up 10% on 2018) and 62% achieving at least five GCSE qualifications (grade 9–1) or equivalent. All measures show a significant difference to national data for similar schools. “Pupils who leave the school at the end of key stage 4 achieve better GCSEs overall than pupils in other alternative provisions” (Ofsted March 2019) Results in 2019 are on par or show significant improvements on results achieved in 2018. This is particularly pleasing as we have now seen a steady improvement in these headline measures since 2016. We can continue to state with confidence that the pupils at The CE Academy perform consistently better than those in similar schools nationally. In 2019 we saw both pupil premium and non-pupil premium cohorts achieve examination performance in excess of the previous couple of years. This is a significant achievement as these measures are far in excess of data for similar school nationally. The results for both cohorts were almost identical. The only differences were that those in receipt of Pupil Premium Funding had a slightly lower average Attainment 8 score but a higher percentage achieve at least one qualification at grade 4 and above.




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In addition to those in receipt of pupil premium we also analyse the performance of our Looked After Children (LAC) This is a small sub group therefore results are not statistically significant. Despite this we feel it is important to analyse data and try and spot trends. Our results for LAC students continue to be higher than the national average for students. This was often alongside them managing great disruption and difficulties in their lives; including placement changes/ breakdowns and family relationship issues. The most recent NEET data that we have identified shows that 94% of pupils at state funded Secondary Schools were in a sustained destination, the figure for pupils who attended Alternative Provision was 57%. As of September 2019 96% of Year 11 pupils who were on roll at The CE Academy in July 2019 had secured a destination. We are delighted with these results as they show destination figures in line with all secondary pupils nationally and far in excess of those pupils who attend Alternative Provision. These figures are consistent with recent years and were consistent for pupils who were in receipt of pupil premium and non-pupil premium pupils.

On leaving the academy, most pupils move on to college placements, apprenticeships, jobs with training or other training.” (Ofsted March 2019)

“The academy works well to support vulnerable young people and operates in a challenging local context. This has led to successes, with pupils previously influenced by gangs improving their attendance at school and ultimately achieving well in GCSE examinations” (Ofsted March 2019) “Staff manage the behaviour of pupils extremely well. Lessons are highly structured, and the strong relationships minimise any misbehaviour.” (Ofsted March 2019)

“the quality of teaching is strong in all subjects.” (Ofsted March 2019) During the Summer Term Year 11 students and their parents/carers were once again questioned about their experience of the CE Academy: The student questionnaire indicated that our students liked the smaller class size, and the vocational opportunities available to them. They felt that they are better able to learn at CE Academy. Students felt that they had better relationships with staff than they had in their mainstream school and that staff listen to them. They felt that CE Academy was a less stressful environment which enabled them to learn. During the last academic year the Academy has taken on responsibility for careers and work experience. Students have commented that they have enjoyed work experience and have appreciated staff helping with college applications and taking them to interviews. The parent and carer questionnaire showed that parents find it easy to approach Academy staff and that their child is expected to behave well. They feel that their child is well cared for at the Academy and that they are kept well informed about their child’s progress “Parents and carers are very supportive of the academy. A typical comment was: “My child had a new lease of life and is enjoying learning since joining the school” – parent view ” (Ofsted March 2019)




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Going Concern After making appropriate enquiries, the board of trustees has a reasonable expectation that the Academy Trust has adequate resources to continue in operational existence for the foreseeable future. For this reason it continues to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Statement of Accounting Policies. FINANCIAL REVIEW The principal source of income for the Academy during the year was obtained from the DfE in the form of the General Annual Grant. In addition the Academy received Top Up funding from Northamptonshire County Council for permanently excluded pupils and income from other mainstream schools and Academies for Dual Registrations. This income and associated expenditure are shown as restricted funds in the statement of financial activities. Incoming resources during the year totalled £4,980k and resources expended totalled £5,303k resulting in a deficit of £323k. During the year £92k was transferred from the restricted fund to the restricted fixed asset fund for the acquisition of additional fixed assets necessary for curriculum delivery and the continuing operations of the Academy. The majority of these additional fixed assets were purchased to replace CCTV systems, outdoor equipment and to provide laptops for pupils to use in classrooms and for members of staff. During the year the Academy spent £97k, from its reserves, to replace the boilers at its Fairlawn Campus. Its bid for Condition Improvement Funding had been unsuccessful in the previous two years, therefore the Governing Body agreed to use its reserves, for this much needed boiler replacement. The key financial policies were reviewed and combined into one document (Finance Policies and Procedures). In addition the Financial Risk Register and Strategic, Reputational and Operational Risk Register were also reviewed and combined. These documents establish the framework for financial management, including the key financial responsibilities of the Governing Body and key officers of the Academy and the scheme of delegation. As at 31 August 2019 the net book value of fixed assets was £3,638k and movements in tangible fixed assets are shown in note 15 to the financial statements. The restricted fixed assets fund is reduced by annual depreciation charges over the expected useful life of the assets concerned. The assets were used exclusively for providing education and the associated support services to the pupils of the Academy. Pupil Premium money, which is received from the DfE, provides funding to support looked after children and those from low income families. This funding is made available to schools to help them narrow the attainment gap that exists between pupils from disadvantaged and more affluent backgrounds. This year the Academy received £120k of which £105 was allocated through the census and the remainder allocated to individual Looked After Children (LAC) through the Personal Education Plan (PEP) process. The Academy used its pupil premium money to continue with and expand upon successful existing projects (vocational courses, occupational therapist) and implement some new initiatives (Chimp management training for all staff).




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Reserves Policy At 31 August 2019 the total funds comprised: Unrestricted 458,766 Restricted: Fixed asset funds 3,637,613 Pension reserve (1,952,000) General fund 834,614 ---------------------------------------------------

2,978,993 =============================================

Due to the unpredictable nature of the LA and its policies and the potential impact on our funding, the Academy Trust aims to carry forward reserves in order to withstand uncertainties about future funding and plans to have sufficient reserves for four months operating costs. The Governing Body plans to utilise the restricted funds for the purpose they were established, for example curriculum development and the development of centres. The Academy aims to hold approximately £1,300k in reserves; this represents four months running costs. Each year the Academy reviews its level of reserves. As at the 31 August 2019 the Academy Trust’s unrestricted general fund was £458k and the balance of its restricted general fund (excluding pension reserve) was £834k (total 1,292k). The Academy Trust’s non-teaching staff are entitled to membership of the Local Government Pension Scheme. The pension scheme liability relates to a non-cash provision for the academy's share in this pension scheme and under the funding agreement the academy must show this pension liability on the balance sheet. The Local Government Pension Scheme as at 31 August 2019 held an increased deficit of £1,952k. However, should operations cease this pension liability would be funded by the DfE. The contribution rate to reduce the liability is calculated by an independent actuary. Investment Policy The academy operates an investment policy that seeks to maximise returns, minimise risk and maintain flexibility and access to funds. This year the Governors agreed to continue investing surplus money in Fixed Term Deposit accounts, for periods of 12 months, which mature at different times throughout the year. In addition, the Governors continued to invest in a 32 day deposit account, which provides access to funds at short notice, to aid cash flow if required. These investments earned the Academy 8k (1%) compared to £425 (0.05%) if the money had remained in the school bank account. Principal Risks and Uncertainties The financial risks to which The CE Academy Trust is exposed are: -

• Changes in LA procedure for commissioning alternative provision for excluded pupils. • The proposed opening of an Alternative Provision Free School, based in Northampton, for 75 secondary

young people excluded or at risk of exclusion from mainstream schools. • Reduction in student numbers. • The removal of ESG in 2019. • Change in government and legislation. • Potential of reduced funding and cash flow.

The academy has reviewed its major risks in 2018-2019 and systems or procedures have been established, wherever possible, to manage those risks.




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FUNDRAISING During the year the young people have raised funds for MacMillan Cancer Support, through cake sales and a Christmas market stall in Kettering town. Our school-aged mothers raised funds via a raffle at their annual BBQ towards their annual summer trip. The Academy has not used external fundraisers and has not received any subsequent complaints. PLANS FOR FUTURE PERIODS

• To secure outstanding achievement for all CE young people. • To continue to focus on using its resources to improve educational standards and provision. • To adapt the curriculum to ensure it meets the needs of the young people providing support, challenge

and aspiration. • To embed effective intervention systems that remove barriers to learning maximising achievement. • To continue to strive to improve the levels of performance of its young people at all levels and will

continue to ensure its young people get employment, further education or training once they leave. • To develop a business model that results in direct working with schools thereby reducing the risks

inherent in an over reliance on the LA. AUDITOR Insofar as the trustees are aware: • there is no relevant audit information of which the charitable company’s auditor is unaware • 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. Trustees’ report, incorporating a strategic report, was approved by order of the board of trustees, as the company directors, on 6th December 2019 and signed on the board’s behalf by: …………………………………………… Bernard Ingram Trustee


GOVERNANCE STATEMENT


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SCOPE OF RESPONSIBILITY As trustees we acknowledge we have overall responsibility for ensuring that The CE Academy has an effective and appropriate system of control, financial and otherwise. However, such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives, and can provide only reasonable and not absolute assurance against material misstatement or loss. The board of trustees has delegated the day-to-day responsibility to the Headteacher as accounting officer, for ensuring financial controls conform with the requirements of both propriety and good financial management and in accordance with the requirements and responsibilities assigned to it in the funding agreement between The CE 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 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

Mr John Sleet (Chair of Trustees) 5 5 Mrs Jill Timms 5 5 Mr Philip Burch 4 5 Mr Bernard Ingram 5 5 Mrs Roberta Kelly (Accounting Officer) 5 5 Mrs Jill Sneddon (resigned 26/11/2018) 0 1 Mr John Henrys (Governor not Trustee) resigned 30/06/19 2 4 Mrs Philippa Hinks (Governor not Trustee) 5 5 Mr James Thomas (Governor not Trustee) 5 5

During the year Jill Sneddon resigned as a Trustee but remained as a Member. John Henrys, Executive Principal, Brooke Weston Academy Trust resigned.

Trustees and Governors: Ø regularly challenge the Accounting Officer and Management Team and are satisfied that the Academy

is functioning well. Ø understand their roles and carry out their duties with diligence. Ø receive regular financial reports and pupil data which is discussed and challenged at meetings. Ø undertake robust scrutiny of all data. Ø are well informed. Ø have undertaken the recommended skills audit. Ø will undertake an internal review in January 2020.

Significant is the Outstanding judgement by Ofsted. The fourth consecutive outstanding inspection.


GOVERNANCE STATEMENT (continued) FOR THE YEAR ENDED 31 AUGUST 2019

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Inspectors had discussions with the chair of the governing body and the trust board and two other governors/ trustees. Inspectors scrutinised a wide range of school documentation including that relating to safeguarding, governance, self-evaluation and school improvement (Ofsted 2019) “Governors have a clear understanding of the comprehensive work that staff and leaders undertake to keep pupils safe. Governors receive regular safeguarding updates at full governing body meetings. Furthermore, the chair regularly meets with the headteacher to consider safeguarding issues. Because of this, Governors have a keen understanding of the issues that affect the pupils’ welfare. They, rightly, have confidence in the school’s staff and senior leaders to ensure that pupils are safe” (Ofsted 2016) “Individually, Governors bring a wealth of safeguarding knowledge to the governing body through their own professional roles. They offer appropriate support and challenge to ensure that senior leaders’ actions comply with the school’s safeguarding procedures and are in the best interests of the pupils. Governors also monitor the effectiveness with which external agencies engage with the school to ensure that pupils receive the support they require” (Ofsted 2016) Trustees and Governors scrutinise all internal and external audit reports and ensure any requirements are actioned quickly and effectively The Finance Committee is a sub-committee of the main Board of Trustees. Its purpose is: Ø to draft the first formal budget plan of the financial year Ø to establish and maintain an up to date 3 year financial plan Ø report significant anomalies from the anticipated position to the Board of Trustees/Governing Body Ø to ensure that the school operates within the Academy’s Financial Handbook Ø to monitor expenditure of all voluntary funds kept on behalf of the Board of Trustees/Governing Body Ø to make decisions in respect of service agreements Ø to receive and consider the minutes of the Health and Safety Committee Ø to ensure, as far as is practical, that Health and Safety issues are appropriately prioritised Ø to determine whether sufficient funds are available for pay increments as recommended by the

headteacher. Ø to review risk register to identify, assess and monitor risks

Finance Committee Member Meetings attended Out of a possible

Mr John Sleet (Chair) 4 4 Mr Bernard Ingram 4 4 Mrs Roberta Kelly (Accounting Officer) 4 4 Mrs Annette Tuck (Director of Finance and Administration 4 4 Mrs Jane Macken (Finance Manager) 4 4



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REVIEW OF VALUE FOR MONEY As accounting officer the headteacher has responsibility for ensuring that the Academy Trust delivers good value in the use of public resources. The accounting officer understands that value for money refers to the educational and wider societal outcomes achieved in return for the taxpayer resources received. The accounting officer considers how the Academy Trust’s use of its resources has provided good value for money during each academic year, and reports to the board of trustees where value for money can be improved, including the use of benchmarking data where appropriate. The accounting officer for the Academy Trust has delivered improved value for money during the year by: As an Alternative Provision CE Academy pupils are referred by the Local Authority and schools. This commissioning model requires the Academy to compete with other providers in the county. The CE Academy’s foremost concern is to provide outstanding education and facilities with qualified teachers teaching their specialist subjects. This has resulted in achievement well above other alternative provisions nationally. The Academy works hard to achieve this success whilst seeking value for money: Ø Supplier and service contracts are regularly reviewed and alternatives researched. Ø Directing resources where they are most needed. Ø Services and contracts are reviewed and renegotiated on a regular basis to ensure the best mix of

quality and cost effectiveness Ø Continually reviewing and amending the configuration of staffing by the efficient deployment of staff. Ø The Academy avoids the extra costs of Agency staff and employs long-standing supply teachers

directly. Ø School buildings are kept in good condition to maintain a good learning environment. Ø Management and Trustees/Governors are given monthly management accounts to track and hold to

account the finances of the Academy. These reports are used to make informed decisions about the best use of the Academy funds.

Ø A schedule of delegation is reviewed and ratified each academic year by the Board of Trustees/Full Governing Body as is the risk register.

Ø Spending proposals are determined and presented to senior leaders and Trustees/Governors and challenged appropriately.

Ø The Academy financial policy ensures tenders/quotes are obtained as appropriate to ensure value for money for all projects/works/supplies.

Ø Management have been influential in driving down costs through procurement and negotiation. Ø In addition to external auditors, internal audit checks have been undertaken by the external auditor and

reports submitted to the Trustees/Governors. Ø Rigorous internal controls are in place to ensure that all ordering is signed off by the Senior Leadership

Team. They are tasked with ensuring a prudent budget and maintaining and improving the learning and teaching environment and exam results.

Ø Resources are shared where appropriate. Ø When significant expenditure is due to take place different options are appraised and competitive

quotations (usually 3) sought to ensure that the best value for money is obtained and that the investment will generate the best possible results for the Academy



Page 17

THE PURPOSE OF THE SYSTEM OF INTERNAL CONTROL The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk of failure to achieve policies, aims and objectives. It can, therefore, only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an on-going process designed to identify and prioritise the risks to the achievement of Academy Trust policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically. The system of internal control has been in place in The Complementary Education Academy Trust for the period 1st September 2018 to 31 August 2019 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 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 Trust's significant risks that has been in place for the period 1 September 2018 to 31 August 2019 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 RISK AND CONTROL FRAMEWORK The Academy Trust’s system of internal financial control is based on a framework of regular management information and administrative procedures including the segregation of duties and a system of delegation and accountability. In particular, it includes:

• comprehensive budgeting and monitoring systems with an annual budget and periodic financial reports which are reviewed and agreed by the board of trustees

• regular reviews by the finance and general purposes committee of reports which indicate financial performance against the forecasts and of major purchase plans, capital works and expenditure programmes

• setting targets to measure financial and other performance • clearly defined purchasing (asset purchase or capital investment) guidelines • delegation of authority and segregation of duties • identification and management of risks

The board of trustees has considered the need for a specific internal audit function and has decided:



Page 18

THE RISK AND CONTROL FRAMEWORK (continued) The auditor’s role includes giving advice on financial matters and performing a range of checks on the Academy Trust’s financial systems. In particular the checks carried out in the current period included: Ø testing of payroll systems Ø testing of purchase systems Ø testing of control account/ bank reconciliations Ø testing Teachers' and Local Government Pensions Ø testing HR procedures, staff contracts etc Ø testing budget monitoring/management accounts Ø testing the academy's inventory (asset) list Ø testing governance procedures and processes Ø testing VAT Ø testing of contracts and procurement

The auditor reports to the Board of Trustees, through the Finance Committee on the operation of 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 of internal control. During the year in question the review has been informed by:

• the work of the internal auditor • the work of the external auditor • the work of the executive managers within the Academy Trust who have responsibility for the development

and maintenance of the internal control framework

The accounting officer has been advised of the implications of the result of their review of the system of internal control by the finance committee and a plan to address weaknesses and ensure continuous improvement of the system is in place. Approved by order of the members of the board of trustees on 6th December 2019 and signed on its behalf by: ……………………………………… ……………………………………… Bernard Ingram R Kelly Trustee Accounting Officer


STATEMENT ON REGULARITY, PROPRIETY AND COMPLIANCE

As Accounting Officer of The Complementary Education Academy Limited I have considered my responsibility tonotify the Academy Trust Board of Trustees and the Education & Skills Funding Agency (ESFA) of materialirregularity, impropriety and non-compliance with terms and conditions of all funding received by the AcademyTrust, under the funding agreement in place between the Academy Trust and the Secretary of State forEducation. As part of my consideration I have had due regard to the requirements of the Academies FinancialHandbook 2018.

I confirm that I and the Academy Trust Board of Trustees are able to identify any material irregular or improperuse of all funds by the Academy Trust, or material non-compliance with the terms and conditions of fundingunder the Academy Trust's funding agreement and the Academies Financial Handbook 2018.

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 ESFA.

................................................R KellyAccounting OfficerDate:

Page 19


STATEMENT OF TRUSTEES' RESPONSIBILITIESFOR THE YEAR ENDED 31 AUGUST 2019

The Trustees (who are also the directors of the charitable company for the purposes of company law) areresponsible for preparing the Trustees' Report and the financial statements in accordance with the AcademiesAccounts Direction published by the Education & Skills 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 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 of resources,including its income and expenditure, for that period. In preparing these financial statements, the Trustees arerequired 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

2018 to 2019;• make judgments and accounting estimates that are reasonable and prudent;• state whether applicable UK Accounting Standards have been followed, subject to any material departures

disclosed and explained in the financial statements;• 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 position ofthe charitable company and enable them to ensure that the financial statements comply with the Companies Act2006. They are also responsible for safeguarding the assets of the charitable company and hence for takingreasonable 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 ESFA/DfE have been applied for thepurposes 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 and signed on its behalf by:

................................................B IngramTrustee

Page 20


INDEPENDENT AUDITORS' REPORT ON THE FINANCIAL STATEMENTS TO THE MEMBERS OF THECOMPLEMENTARY EDUCATION ACADEMY LIMITED

Opinion

We have audited the financial statements of The Complementary Education Academy Limited (the 'academytrust') for the year ended 31 August 2019 which comprise the Statement of Financial Activities, the BalanceSheet, the Statement of Cash Flows and the related notes, including a summary of significant accountingpolicies. The financial reporting framework that has been applied in their preparation is applicable law, UnitedKingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FinancialReporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', theCharities SORP 2015 and the Academies Accounts Direction 2018 to 2019 issued by the Education & SkillsFunding Agency.

In our opinion the financial statements:• give a true and fair view of the state of the Academy Trust's affairs as at 31 August 2019 and of its

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

• have been properly prepared in accordance with United Kingdom Generally Accepted AccountingPractice; and

• have been prepared in accordance with the requirements of the Companies Act 2006, the Charities SORP2015 and the Academies Accounts Direction 2018 to 2019 issued by the Education & Skills FundingAgency.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicablelaw. Our responsibilities under those standards are further described in the Auditors' responsibilities for the auditof the financial statements section of our report. We are independent of the Academy Trust in accordance withthe ethical requirements that are relevant to our audit of the financial statements in the United Kingdom,including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethicalresponsibilities in accordance with these requirements. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us toreport to you where:• the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is

not appropriate; or• the Trustees have not disclosed in the financial statements any identified material uncertainties that may

cast significant doubt about the Academy Trust's ability to continue to adopt the going concern basis ofaccounting for a period of at least twelve months from the date when the financial statements areauthorised for issue.

Page 21


INDEPENDENT AUDITORS' REPORT ON THE FINANCIAL STATEMENTS TO THE MEMBERS OF THECOMPLEMENTARY EDUCATION ACADEMY LIMITED (CONTINUED)

Other information

The Trustees are responsible for the other information. The other information comprises the information includedin the Annual Report, other than the financial statements and our Auditors' Report thereon. Other informationincludes the Reference and Administrative Details, Trustees' Report incorporating the Strategic Report and theDirectors' Report, the Governance Statement, the Statement on Regularity, Propriety and Compliance and theTrustees' Responsibilities Statement. Our opinion on the financial statements does not cover the otherinformation and, except to the extent otherwise explicitly stated in our report, we do not express any form ofassurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, indoing so, consider whether the other information is materially inconsistent with the financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such materialinconsistencies or apparent material misstatements, we are required to determine whether there is a materialmisstatement in the financial statements or a material misstatement of the other information. If, based on thework we have performed, we conclude that there is a material misstatement of this other information, we arerequired to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:• the information given in the Trustees' Report (incorporating the Strategic Report and the Directors'

Report) for the financial year for which the financial statements are prepared is consistent with thefinancial statements and.

• the Strategic Report and the Directors' Report been prepared in accordance with applicable legalrequirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the Academy Trust and its environment obtained in thecourse of the audit, we have not identified material misstatements in the Trustees' Report including the StrategicReport.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006requires 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.

Page 22


INDEPENDENT AUDITORS' REPORT ON THE FINANCIAL STATEMENTS TO THE MEMBERS OF THECOMPLEMENTARY EDUCATION ACADEMY LIMITED (CONTINUED)

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors ofthe Academy Trust for the purposes of company law) are responsible for the preparation of the financialstatements and for being satisfied that they give a true and fair view, and for such internal control as theTrustees determine is necessary to enable the preparation of financial statements that are free from materialmisstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Academy Trust's ability tocontinue as a going concern, disclosing, as applicable, matters related to going concern and using the goingconcern basis of accounting unless the Trustees either intend to liquidate the Academy Trust or to ceaseoperations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are freefrom material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes ouropinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted inaccordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arisefrom fraud or error and are considered material if, individually or in the aggregate, they could reasonably beexpected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the FinancialReporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of ourAuditors' Report.

Use of our report

This report is made solely to the Academy Trust's members, as a body, in accordance with Chapter 3 of Part 16of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Academy Trust'smembers those matters we are required to state to them in an Auditors' Report and for no other purpose. To thefullest extent permitted by law, we do not accept or assume responsibility to anyone other than the AcademyTrust and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Alyson Howard FCCA DChA CF (Senior Statutory Auditor)for and on behalf ofMHA MacIntyre HudsonChartered Accountants & Statutory AuditorsChartered AccountantsStatutory Auditors71 New Dover RoadCanterburyKentCT1 3DZ

Date:

Page 23

http://www.frc.org.uk/auditorsresponsibilities


INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO THECOMPLEMENTARY EDUCATION ACADEMY LIMITED AND THE EDUCATION & SKILLS FUNDINGAGENCY

In accordance with the terms of our engagement letter dated 15 May 2018 and further to the requirements of theEducation & Skills Funding Agency (ESFA) as included in the Academies Accounts Direction 2018 to 2019, wehave carried out an engagement to obtain limited assurance about whether the expenditure disbursed andincome received by The Complementary Education Academy Limited during the year 1 September 2018 to 31August 2019 have been applied to the purposes identified by Parliament and the financial transactions conformto the authorities which govern them.

This report is made solely to The Complementary Education Academy Limited and the ESFA in accordance withthe terms of our engagement letter. Our work has been undertaken so that we might state to TheComplementary Education Academy Limited and ESFA those matters we are required to state in a report and forno other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyoneother than The Complementary Education Academy Limited and ESFA, for our work, for this report, or for theconclusion we have formed.

Respective responsibilities of The Complementary Education Academy Limited's accountingofficer and the reporting accountant

The accounting officer is responsible, under the requirements of The Complementary Education AcademyLimited's funding agreement with the Secretary of State for Education dated 1 November 2012 and theAcademies Financial Handbook, extant from 1 September 2018, for ensuring that expenditure disbursed andincome received is applied for the purposes intended by Parliament and the financial transactions conform to theauthorities 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 2018 to 2019. 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 2018 to 31 August 2019 have not been applied to purposesintended by Parliament or that the financial transactions do not conform to the authorities which govern them.

Page 24


INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO THECOMPLEMENTARY EDUCATION ACADEMY LIMITED AND THE EDUCATION & SKILLS FUNDINGAGENCY (CONTINUED)

Approach

We conducted our engagement in accordance with the Academies Accounts Direction 2018 to 2019 issued byESFA. 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 Trust's income and expenditure.

The work undertaken to draw our conclusions include:

• Reviewing the Minutes of the Governing Body and other evidence made available to us, relevant to our consideration of regularity;

• A review of the objectives and activities of the Trust, with reference to the income streams and other information available to us as auditors;

• Testing a sample of payroll payments to staff;• Testing a sample of payments to suppliers and other third parties;• Consideration of governance issues; and• Evaluating the internal control procedures and reporting lines, and testing as appropriate and making

appropriate enquiries of the Accounting Officer.

Conclusion

In the course of our work, nothing has come to our attention which suggest in all material respects theexpenditure disbursed and income received during the year 1 September 2018 to 31 August 2019 has not beenapplied to purposes intended by Parliament and the financial transactions do not conform to the authorities whichgovern them.

Reporting Accountant

MHA MacIntyre HudsonChartered Accountants & Statutory Auditors

71 New Dover RoadCanterburyKentCT1 3DZ

Date:

Page 25


STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT)FOR THE YEAR ENDED 31 AUGUST 2019

Unrestrictedfunds2019

Restrictedgeneral funds

2019

Restrictedfixed asset

funds2019

Totalfunds2019

Totalfunds2018

Note £ £ £ £ £

Income from:Donations and capital

grants 4 1,537 - 28,439 29,976 35,203 Charitable activities 5 - 4,940,901 - 4,940,901 4,920,815 Other trading activities 6 - 575 - 575 3,083 Investments 7 8,829 - - 8,829 7,365

Total income 10,366 4,941,476 28,439 4,980,281 4,966,466

Expenditure on:Charitable activities 9 - 5,056,011 246,996 5,303,007 5,329,272

Total expenditure 8 - 5,056,011 246,996 5,303,007 5,329,272

Netincome/(expenditure)

10,366 (114,535) (218,557) (322,726) (362,806)

Transfers betweenfunds 18 - (92,068) 92,068 - -

Net movement infunds before otherrecognisedgains/(losses) 10,366 (206,603) (126,489) (322,726) (362,806)

Other recognisedgains/(losses):

Actuarial (losses)/gainson defined benefitpension schemes 23 - (637,000) - (637,000) 385,000

Net movement infunds 10,366 (843,603) (126,489) (959,726) 22,194

Reconciliation offunds:

Total funds broughtforward 447,824 (275,382) 3,764,101 3,936,543 3,914,349

Net movement in funds 10,366 (843,603) (126,489) (959,726) 22,194 Total funds carried

forward 458,190 (1,118,985) 3,637,612 2,976,817 3,936,543

The Statement of Financial Activities includes all gains and losses recognised in the year.

Page 26


STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT)(CONTINUED)FOR THE YEAR ENDED 31 AUGUST 2019

The notes on pages 30 to 54 form part of these financial statements.

Page 27

THE COMPLEMENTARY EDUCATION ACADEMY LIMITED(A Company Limited by Guarantee)REGISTERED NUMBER: 08190591

BALANCE SHEETAS AT 31 AUGUST 2019

2019 2018Note £ £

Fixed assets

Tangible assets 15 3,637,612 3,764,101

3,637,612 3,764,101Current assets

Debtors 16 140,040 129,490Cash at bank and in hand 22 1,426,467 1,394,485

1,566,507 1,523,975

Creditors: amounts falling due within oneyear 17 (275,302) (219,533)

Net current assets

1,291,205

1,304,442

Total assets less current liabilities 4,928,817 5,068,543

Defined benefit pension scheme liability 23 (1,952,000) (1,132,000)

Total net assets 2,976,817 3,936,543

Funds of the Academy Trust Restricted funds:

Restricted fixed asset funds 18 3,637,612 3,764,101Restricted general funds 18 833,015 856,618

Restricted funds excluding pension liability 18 4,470,627 4,620,719

Restricted general funds - Pension reserve 18 (1,952,000) (1,132,000)

Total restricted funds 18

2,518,627

3,488,719Unrestricted funds 18 458,190 447,824

Total funds 2,976,817 3,936,543

The financial statements on pages 26 to 54 were approved by the Trustees, and authorised for issue on and aresigned on their behalf, by:

................................................B IngramTrustee

The notes on pages 30 to 54 form part of these financial statements.

Page 28


STATEMENT OF CASH FLOWSFOR THE YEAR ENDED 31 AUGUST 2019

2019 2018Note £ £

Cash flows from operating activities

Net cash provided by operating activities 20 115,221 61,815

Cash flows from investing activities 21 (83,239) (26,823)

Change in cash and cash equivalents in the year

31,982

34,992

Cash and cash equivalents at the beginning of the year 1,394,485 1,359,493

Cash and cash equivalents at the end of the year 22 1,426,467 1,394,485

The notes on pages 30 to 54 form part of these financial statements

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NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 AUGUST 2019

1. General information

The Complementary Education Academy Limited is a company limited by guarantee, incorporated inEngland and Wales. The address of the registered office and principal place of operation are detailed onpage 1. The nature of the Academy Trust's operations and principal activity are detailed in the Trustees'Report.

2. Accounting policies

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

2.1 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 historic 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 2018 to 2019 issued by ESFA,the Charities Act 2011 and the Companies Act 2006.

The Complementary Education Academy Limited meets the definition of a public benefit entity underFRS 102. The financial statements are prepared in sterling which is the functional currency of theAcademy Trust and rounded to the nearest pound.

2.2 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 Trust to continue as a going concern. The Trustees make this assessment in respect ofa period 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.

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2. Accounting policies (continued)

2.3 Income

All incoming resources are recognised when the Academy Trust has entitlement to the funds, thereceipt is probable and the amount can be measured reliably.

• GrantsGrants are included in the Statement of Financial Activities on a receivable basis. The balance ofincome received for specific purposes but not expended during the period is shown in the relevantfunds on the Balance Sheet. Where income is received in advance of meeting any performance-related conditions there is not unconditional entitlement to the income and its recognition is deferredand included in creditors as deferred income until the performance-related conditions are met. Whereentitlement occurs before income is received, the income is accrued.

General Annual Grant is recognised in full in the Statement of Financial Activities in the year for whichit is receivable and any abatement in respect of the year is deducted from income and recognised asa liability.

Capital grants are recognised in full when there is an unconditional entitlement to the grant. Unspentamounts of capital grants are reflected in the Balance Sheet in the restricted fixed asset fund. Capitalgrants are recognised when there is entitlement and are not deferred over the life of the asset onwhich they are expended.

• Sponsorship incomeSponsorship income provided to the Academy Trust which amounts to a donation is recognised in theStatement of Financial Activities in the year in which it is receivable (where there are no performance-related conditions) where receipt is probable and it can be measured reliably.

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

• Other incomeOther income is recognised in the year it is receivable and to the extent the Academy Trust hasprovided the goods or services.

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefitto a third party, it is probable that a transfer of economic benefits will be required in settlement andthe amount of the obligation can be measured reliably. Expenditure is classified by activity. The costsof each activity are made up of the total of direct costs and shared costs, including support costsinvolved in undertaking each activity. Direct costs attributable to a single activity are allocated directlyto that activity. Shared costs which contribute to more than one activity and support costs which arenot attributable to a single activity are apportioned between those activities on a basis consistent withthe use of resources. Central staff costs are allocated on the basis of time spent, and depreciationcharges allocated on the portion of the asset’s use.

• Charitable activitiesThese are costs incurred on the Academy Trust's educational operations, including support costs andcosts relating to the governance of the Academy Trust apportioned to charitable activities.

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2.4 Expenditure (continued)

All resources expended are inclusive of irrecoverable VAT.

2.5 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measuredreliably by the Academy Trust; this is normally upon notification of the interest paid or payable by theinstitution with whom the funds are deposited.

2.6 Taxation

The Academy Trust is considered to pass the tests set out in Paragraph 1 Schedule 6 of the FinanceAct 2010 and therefore it meets the definition of a charitable company for UK corporation taxpurposes.

Accordingly, the Academy Trust is potentially exempt from taxation in respect of income or capitalgains received within categories covered by Part 11, chapter 3 of the Corporation Tax Act 2010 orSection 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gainsare applied exclusively to charitable purposes.

2.7 Tangible fixed assets

Assets costing £1,000 or more are capitalised as tangible fixed assets and are carried at cost, net ofdepreciation and any provision for impairment.

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 attached tothe funding requiring the continued use of the asset, the related grants are credited to a restrictedfixed asset fund in the Statement of Financial Activities and carried forward in the Balance Sheet.Depreciation on the relevant assets is charged directly to the restricted fixed asset fund in theStatement of Financial Activities. Where tangible fixed assets have been acquired with unrestrictedfunds, a transfer is made to move these additions to the Restricted Fixed Asset Fund.

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

Depreciation is provided on the following bases:

Leasehold property - 2-10% Straight lineFixtures and fittings - 20% Straight lineComputer Equipment - 25-33% Straight line

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.

Page 32




2.8 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.

2.9 Cash at bank and in hand

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

2.10 Liabilities

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 the amountof the settlement can be estimated reliably. Liabilities are recognised at the amount that the AcademyTrust anticipates it will pay to settle the debt or the amount it has received as advanced payments forthe goods or services it must provide.

2.11 Provisions

Provisions are recognised when the Academy Trust has an obligation at the reporting date as a resultof a past event which it is probable will result in the transfer of economic benefits and the obligationcan be estimated reliably.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Wherethe effect of the time value of money is material, the provision is based on the present value of thoseamounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. Theunwinding of the discount is recognised within interest payable and similar charges.

2.12 Financial instruments

The Academy Trust only holds basic financial instruments as defined in FRS 102. The financialassets and financial liabilities of the Academy Trust and their measurement bases are as follows:

Financial assets - trade and other debtors are basic financial instruments and are debt instrumentsmeasured at amortised cost as detailed in note 16. Prepayments are not financial instruments. Cashat bank is classified as a basic financial instrument and is measured at face value.

Financial liabilities - trade creditors, accruals and other creditors are financial instruments, and aremeasured at amortised cost as detailed in note 17. Taxation and social security are not included inthe financial instruments disclosure definition. Deferred income is not deemed to be a financialliability, as the cash settlement has already taken place and there is an obligation to deliver servicesrather than cash or another financial instrument.

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2.13 Pensions

Retirement benefits to employees of the Academy Trust are provided by the Teachers' PensionScheme ("TPS") and the Local Government Pension Scheme ("LGPS"). These are defined benefitschemes.

The TPS is an unfunded scheme and contributions are calculated so as to spread the cost ofpensions over employees’ working lives with the Academy Trust in such a way that the pension costis a substantially 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. TPS is an unfunded multi-employer scheme with no underlying assets to assignbetween employers. Consequently, the TPS is treated as a defined contribution scheme foraccounting purposes and the contributions recognised in the period to which they relate.

The LGPS is a funded multi-employer scheme and the assets are held separately from those of theAcademy Trust in separate trustee administered funds. Pension scheme assets are measured at fairvalue and liabilities are measured on an actuarial basis using the projected unit credit method anddiscounted at a rate equivalent to the current rate of return on a high quality corporate bond ofequivalent term and currency to the liabilities. The actuarial valuations are obtained at least trienniallyand are updated at each Balance Sheet date. The amounts charged to operating surplus are thecurrent service costs and the costs of scheme introductions, benefit changes, settlements andcurtailments. They are included as part of staff costs as incurred. Net interest on the net definedbenefit liability/asset is also recognised in the Statement of Financial Activities and comprises theinterest cost on the defined benefit obligation and interest income on the scheme assets, calculatedby multiplying the fair value of the scheme assets at the beginning of the period by the rate used todiscount the benefit obligations. The difference between the interest income on the scheme assetsand the actual return on the scheme assets is recognised in Other recognised gains and losses.

Actuarial gains and losses are recognised immediately in Other recognised gains and losses.

2.14 Fund accounting

Unrestricted income funds represent those resources which may be used towards meeting any of thecharitable objects of the Academy Trust at the discretion of the Trustees.

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

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

Investment income, gains and losses are allocated to the appropriate fund.

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3. Critical accounting estimates and areas of judgment

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

Critical accounting estimates and assumptions:

The Academy Trust trust makes estimates and assumptions concerning the future. The resultingaccounting estimates and assumptions will, by definition, seldom equal the related actual results. Theestimates and assumptions that have a significant risk of causing a material adjustment to the carryingamounts 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 or income for pensions include the discount rate. Anychanges in these assumptions, which are disclosed in note 23, will impact the carrying amount of thepension liability. Furthermore a roll forward approach which projects results from the latest full actuarialvaluation performed at 31 March 2016 has been used by the actuary in valuing the pensions liability at 31August 2019. Any differences between the figures derived from the roll forward approach and a fullactuarial valuation would impact on the carrying amount of the pension liability.

Critical areas of judgment:

The annual depreciation charge for tangible assets is sensitive to changes in the estimated usefuleconomic lives and residual values of the asset. The useful economic lives and residual values are re-assessed annually. They are amended when nescessary to reflect current estimates, based ontechnological advancement, future investments, economic utilisation and the physical condition of theassets.

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4. Income from donations and capital grants



funds2019

Totalfunds2019

£ £ £ Donations 1,537 - 1,537Capital grants - 28,439 28,439

Total 2019 1,537 28,439 29,976



funds2018

Totalfunds2018

£ £ £Donations 25,735 - 25,735Capital grants - 9,468 9,468

Total 2018 25,735 9,468 35,203

5. Charitable activities - Funding for the Academy Trust's educational operations

Restrictedgeneral

funds2019

Totalfunds2019

Totalfunds2018

£ £ £DfE/ESFA grantsGeneral Annual Grant (GAG) 2,322,256 2,322,256 2,345,713 Pupil Premium 120,011 120,011 117,628 Other DfE / ESFA revenue grants 37,142 37,142 13,194

2,479,409 2,479,409 2,476,535Other government grants Other Government revenue grants 2,461,492 2,461,492 2,444,280

Total 2019 4,940,901 4,940,901 4,920,815

There are no unfulfilled conditions or other contingencies attached to the government grants above.

In 2018 all Income from charitable activities was allocated to Restricted general funds.

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6. Income from other trading activities

Restrictedgeneral

funds2019

Totalfunds2019

Totalfunds2018

£ £ £

Other income 575 575 3,083

In 2018 all Income from trading activities was allocated to Restricted general funds.

7. Investment income


Totalfunds2019

Totalfunds2018

£ £ £

Bank interest receivable 8,829 8,829 7,365

In 2018 all Income from investments was allocated to Unrestricted funds.

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8. Total expenditure

Staff costs2019

Premisescosts2019

Other costs2019

Total2019

£ £ £ £

Educational operations:

Direct costs 2,034,967 - 1,194,393 3,229,360Support costs 1,340,008 205,792 527,847 2,073,647

Total 2019 3,374,975 205,792 1,722,240 5,303,007

Staff costs2018

Premisescosts2018

Other costs2018

Total2018

£ £ £ £

Educational operations:

Direct costs 2,020,636 - 1,221,552 3,242,188Support costs 1,336,182 384,008 366,894 2,087,084

Total 2018 3,356,818 384,008 1,588,446 5,329,272

In 2018, of the total expenditure on charitable activities of £5,329,272, £25,000 was from unrestrictedfunds, £5,042,166 was from restricted general funds and £262,106 was from restricted fixed asset funds.

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9. Analysis of expenditure by charitable activities

Activitiesundertaken

directly2019

Supportcosts2019

Totalfunds2019

£ £ £

Educational operations 3,229,360 2,073,647 5,303,007

Activitiesundertaken

directly2018

Supportcosts2018

Totalfunds2018

£ £ £

Educational operations 3,242,188 2,087,084 5,329,272

Analysis of support costs

Educationaloperations

2019

Totalfunds2019

Totalfunds2018

£ £ £

Defined benefit pension scheme finance cost 34,000 34,000 35,000 Staff costs 1,306,008 1,306,008 1,301,182 Depreciation 246,195 246,195 262,106 Technology costs 38,306 38,306 46,775 Premises costs 205,792 205,792 199,544 Other costs 224,589 224,589 215,887 Governance costs 18,757 18,757 26,590

2,073,647 2,073,647 2,087,084

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10. Governance costs

2019 2018£ £

Legal and professional fees 6,732 11,515Auditors' remuneration - Audit of the financial statements 6,775 6,950Auditors' remuneration - Other services 8,200 8,125Over accrual in prior year (2,950) -

Total 18,757 26,590

11. Net income/(expenditure)

Net income/(expenditure) for the year includes:

2019 2018£ £

Depreciation of tangible fixed assets 246,195 262,106Fees paid to auditors for:

- Audit of the financial statements 6,775 6,950- Other services 8,200 8,125

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12. Staff costs

a. Staff costs

Staff costs during the year were as follows:

2019 2018£ £

Wages and salaries 2,511,992 2,477,675Social security costs 236,617 241,362Pension costs 592,366 602,781

3,340,975 3,321,818

Defined benefit pension scheme finance cost 34,000 35,000

3,374,975 3,356,818

b. Staff numbers

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

2019 2018No. No.

Teachers 40 43Administration and support 41 37Management 5 5

86 85

c. Higher paid staff

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

2019 2018No. No.

In the band £60,001 - £70,000 1 1In the band £80,001 - £90,000 1 1

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12. Staff costs (continued)

c. Higher paid staff (continued)

The above employees participated in the Teachers' Pension Scheme. During the period ending 31August 2019, employer pension contributions for these employees amounted to £27,795 (2018 -£23,427).

d. Key management personnel

The Key Management Personnel of the Trust comprise the Trustees and the Senior Management Teamas listed on page 1. The total amount of employee benefits (including employer national insurancecontributions and employer pension contributions) received by Key Management Personnel for theirservices to the Trust was £381,041 (2018 - £373,661).

13. 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 staff members under their contracts ofemployment. The value of Trustees' remuneration and other benefits was as follows:

2019 2018£ £

R Kelly, Headteacher and Accounting Officer Remuneration 85,000 -90,000

80,000 -85,000

Pension contributions paid 10,000 -15,000

10,000 -15,000

During the year ended 31 August 2019, expenses totalling £823 were reimbursed in or paid directly to 1Trustee (2018 - £1,180 to 2 Trustees). The expenses were reimbursed in 2018/19 to the Trustee in herrole as Headteacher.

14. Trustees' and Officers' insurance

The Academy Trust has opted into the Department of Education's risk protection arrangement (RPA), analternative to insurance where UK government funds cover losses that arise. This scheme protectsTrustees and officers from claims arising from negligent acts, errors or omissions occurring whilst onacademy business, and provides cover up to £10,000,000. It is not possible to quantify the Trustees andofficers indemnity element from the overall cost of the RPA scheme membership.

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15. Tangible fixed assets

Leaseholdproperty

Fixtures andfittings

Computerequipment Total

£ £ £ £

Cost or valuationAt 1 September 2018 4,362,235 448,053 215,089 5,025,377Additions 97,266 15,241 8,000 120,507Disposals - (31,400) (6,193) (37,593)

At 31 August 2019 4,459,501 431,894 216,896 5,108,291

DepreciationAt 1 September 2018 721,736 374,740 164,800 1,261,276Charge for the year 185,274 36,951 23,970 246,195On disposals - (30,915) (5,877) (36,792)

At 31 August 2019 907,010 380,776 182,893 1,470,679

Net book value

At 31 August 2019 3,552,491 51,118 34,003 3,637,612

At 31 August 2018 3,640,499 73,313 50,289 3,764,101

The leasehold property was valued at conversion to academy status on 19 July 2013 by the ESFA, aRICS Registered Valuer using the fair value method. The Trustees consider that the valuation remainsappropriate for the purposes of these financial statements.

16. Debtors

2019 2018£ £

Due within one yearTrade debtors 9,337 1,573Other debtors 94,611 83,965Prepayments and accrued income 36,092 43,952

140,040 129,490

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17. Creditors: Amounts falling due within one year

2019 2018£ £

Trade creditors 84,989 54,021Other taxation and social security 60,427 59,166Other creditors 55,530 57,780Accruals and deferred income 74,356 48,566

275,302 219,533

2019 2018£ £

Deferred IncomeDeferred income at 1 September 6,387 6,367Resources deferred during the year 6,559 6,387Amounts released from previous periods (6,387) (6,367)

Deferred income at 31 August 6,559 6,387

At the Balance Sheet date, the Academy Trust was holding funds received in advance of the 2019/20Academic year in respect of funding paid in advance for rates relief.

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18. Statement of funds

Balance at 1September

2018£

Income£

Expenditure£

Transfersin/out

£

Gains/(Losses)

£

Balance at31 August

2019£

Unrestrictedfunds

General funds 447,824 10,366 - - - 458,190


General AnnualGrant (GAG) 856,618 2,322,256 (2,253,791) (92,068) - 833,015

Pupil Premium - 120,011 (120,011) - - - Other DfE /

ESFA revenuegrants - 37,142 (37,142) - - -

OtherGovernmentrevenue grants - 2,461,492 (2,461,492) - - -

Other activities - 575 (575) - - - Pension reserve (1,132,000) - (183,000) - (637,000) (1,952,000)

(275,382) 4,941,476 (5,056,011) (92,068) (637,000) (1,118,985)

Restricted fixedasset funds

NBV of fixedassets 3,764,101 - (246,996) 120,507 - 3,637,612

DfE / ESFAcapital grants - 28,439 - (28,439) - -

3,764,101 28,439 (246,996) 92,068 - 3,637,612

Total Restrictedfunds 3,488,719 4,969,915 (5,303,007) - (637,000) 2,518,627

Total funds 3,936,543 4,980,281 (5,303,007) - (637,000) 2,976,817

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18. Statement of funds (continued)

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

The General Fund has been created to recognise the income and expenditure in respect of activitiesundertaken by the Trust which fall outside the scope of its core activities.

The General Annual Grant (GAG) represents the core funding for the educational activities of the Trust viathe Education and Skills Funding Agency (ESFA) by the Department for Education (DfE). The GAG fundhas been established because the GAG must be used for the normal running costs of the Trust. A transferof £92,068 was made to the NBV of Fixed Assets fund to show capital additions bought with GAG funds.

The Pupil Premium fund has been established to recognise the restricted funding from the Education andSkills Funding Agency to raise the attainment of disadvantaged pupils and close the gap between themand their peers.

The Other Government Grants fund has been established to recognise grants from Government bodiesother than the DfE/ESFA and Local Authorities that fall outside the scope of core funding.

The Other activities fund has been established to recognise all other restricted funding that cannot beclassified above but fall outside the scope of its core activities.

The Pension reserve has been created to separately identify the pension deficit inherited from the LocalAuthority upon conversion to academy status, and through which all the pension scheme movements arerecognised.

The NBV of fixed assets fund has been set up to recognise the tangible assets held by the Trust and isequivalent to the net book value of tangible fixed assets. Depreciation of tangible fixed assets is allocatedto this fund. As capital assets are bought transfers are made to this fund.

The DfE/ESFA Capital Grants fund has been created to recognise capital grants received for the purposeof the acquisition of tangible fixed assets. As tangible fixed assets are purchased, a transfer is made tothe NBV of fixed asset funds. During the year the capital income was spent on capital expenditure with atransfer being made to the NBV of fixed assets fund.

The Complementary Education Academy Limited remains the only academy in the Multi Academy Trust at31 August 2018 and all the funds above are those of The Complementary Education Academy Limited.

Under the funding agreement with the Secretary of State, the Academy Trust was not subject to a limit onthe amount of GAG it could carry forward at 31 August 2019.

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18. Statement of funds (continued)

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

Balance at1 September

2017£

Income£

Expenditure£

Transfersin/out

£

Gains/(Losses)

£

Balance at31 August

2018£

Unrestrictedfunds

General funds 439,724 33,100 (25,000) - - 447,824


General AnnualGrant (GAG) 814,902 2,345,713 (2,271,981) (32,016) - 856,618

Pupil Premium - 117,628 (117,628) - - - Other

Governmentrevenue grants - 2,444,280 (2,444,280) - - -

Other activities - 16,277 (16,277) - - - Pension reserve (1,325,000) - (192,000) - 385,000 (1,132,000)

(510,098) 4,923,898 (5,042,166) (32,016) 385,000 (275,382)

Restricted fixedasset funds

NBV of fixedassets 3,984,723 - (262,106) 41,484 - 3,764,101

DfE / ESFAcapital grants - 9,468 - (9,468) - -

3,984,723 9,468 (262,106) 32,016 - 3,764,101

Total Restrictedfunds 3,474,625 4,933,366 (5,304,272) - 385,000 3,488,719

Total funds 3,914,349 4,966,466 (5,329,272) - 385,000 3,936,543

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19. Analysis of net assets between funds

Analysis of net assets between funds - current year


Restrictedgeneral

funds2019


funds2019

Totalfunds2019

£ £ £ £

Tangible fixed assets - - 3,637,612 3,637,612Current assets 733,492 833,015 - 1,566,507Creditors due within one year (275,302) - - (275,302)Defined benefit pension scheme liability - (1,952,000) - (1,952,000)

Total 458,190 (1,118,985) 3,637,612 2,976,817

Analysis of net assets between funds - prior year


Restrictedgeneral

funds2018


funds2018

Totalfunds2018

£ £ £ £

Tangible fixed assets - - 3,764,101 3,764,101Current assets 667,357 856,618 - 1,523,975Creditors due within one year (219,533) - - (219,533)Defined benefit pension scheme liability - (1,132,000) - (1,132,000)

Total 447,824 (275,382) 3,764,101 3,936,543

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20. Reconciliation of net expenditure to net cash flow from operating activities

2019 2018£ £

Net expenditure for the year (as per Statement of Financial Activities) (322,726) (362,806)

Adjustments for:Depreciation 246,195 262,106Capital grants from DfE and other capital income (28,439) (9,468)Investment income (8,829) (7,365)Defined benefit pension scheme cost less contributions payable 149,000 157,000Defined benefit pension scheme finance cost 34,000 35,000Increase in debtors (10,550) (33,980)Increase in creditors 55,769 19,156(Profit)/loss on disposal of tangible fixed assets 801 2,172

Net cash provided by operating activities 115,221 61,815

21. Cash flows from investing activities

2019 2018£ £

Investment income 8,829 7,365Purchase of tangible fixed assets (120,507) (43,656)Capital grants from DfE Group 28,439 9,468

Net cash used in investing activities (83,239) (26,823)

22. Analysis of cash and cash equivalents

2019 2018£ £

Cash in hand 1,426,467 1,394,485

Total cash and cash equivalents 1,426,467 1,394,485

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23. Pension commitments

The Academy Trust's employees belong to two principal pension schemes: the Teachers' PensionScheme for England and Wales (TPS) for academic and related staff; and the Local Government PensionScheme (LGPS) for non-teaching staff, which is managed by Northamptonshire County Council. Both aremulti-employer defined benefit schemes.

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

Contributions amounting to £55,530 were payable to the schemes at 31 August 2019 (2018 - £57,780)and are included within creditors.

Introduction

The Teachers' Pension Scheme (TPS or scheme) is a statutory, unfunded, defined benefit occupationalscheme, governed by the Teachers' Pensions Regulations 2010 (as amended), and the Teachers’Pension Scheme Regulations 2014 (as amended). These regulations apply to teachers in schools andother educational establishments, including academies, in England and Wales that are maintained by localauthorities. In addition, teachers in many independent and voluntary-aided schools and teachers andlecturers in some establishments of further and higher education may be eligible for membership.Membership is automatic for full-time teachers and lecturers and, from 1 January 2007, automatic too forteachers and lecturers in part-time employment following appointment or a change of contract. Teachersand lecturers are able to opt out of the TPS.

The Teachers' Pension Budgeting and Valuation Account

Although members may be employed by various bodies, their retirement and other pension benefits areset out in regulations made under the Superannuation Act (1972) and Public Service Pensions Act (2013)and are paid by public funds provided by Parliament. The TPS is an unfunded scheme and memberscontribute on a ’pay as you go ‘basis – contributions from members, along with those made by employers,are credited to the Exchequer under arrangements governed by the above Acts.

The Teachers' Pensions Regulations 2010 require an annual account, the Teachers' Pension Budgetingand Valuation Account, to be kept of receipts and expenditure (including the cost of pension increases).From 1 April 2001, the Account has been credited with a real rate of return, which is equivalent toassuming that the balance in the Account is invested in notional investments that produce that real rate ofreturn.

Valuation of the Teachers' Pension Scheme

The latest valuation of the Teachers’ Pension Scheme has now taken place, in line with directions issuedby HM Treasury and using membership data as at 31 March 2016. As a result of this valuation TPSemployers will pay an increased contribution rate of 23.68% from September 2019 (this includes theadministration levy of 0.8%). The timing of the implementation is to align its introduction with employers’budget planning cycles. Until then, employers will pay the current rate of 16.48%.A copy of the latest valuation report can be found by following this link to the Teachers’ Pension Schemewebsite.

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23. Pension commitments (continued)

Scheme Changes

The arrangements for a reformed Teachers’ Pension Scheme, in line with the recommendations made byLord Hutton, in particular the introduction of a Career Average Revalued Earnings (CARE) scheme, wereimplemented from 1 April 2015.

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

In December 2018, the Court of Appeal held that transitional protection provisions contained in thereformed judicial and firefighter pension schemes, introduced as part of public service pension reforms in2015, gave rise to direct age discrimination and were therefore unlawful. The Supreme Court, in adecision made in June 2019, have rejected the Government’s application for permission to appeal theCourt of Appeal’s ruling. The case will now be referred to an Employment Tribunal for a decision regardingthe remedy which will need to be offered to those members of the two schemes who were subject of theage discrimination.

HM Treasury are clear that the ruling has implications for the other public service schemes, including theTeachers’ Pension Scheme. Those implications are currently being considered and any impact onscheme costs is expected to be looked at within the next scheme valuation, which is currently scheduledto be based on April 2020 data and implemented in April 2023.

The employer’s pension costs paid to TPS in the period amounted to £254,484 (2018 - £262,328).

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 hasset out above the information available on the scheme.

Local Government Pension Scheme

The LGPS is a funded defined benefit pension scheme, with the assets held in separate trustee-administered funds. The total contribution made for the year ended 31 August 2019 was £250,000 (2018 -£243,631), of which employer's contributions totalled £198,000 (2018 - £192,621) and employees'contributions totalled £ 52,000 (2018 - £51,010). The agreed contribution rates for future years are 21.6per cent for employers and 5.5 - 12.5 per cent 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.

The TPS valuation for 2012 determined an employer rate of 16.4%, which was payable from September2015. The next valuation of the TPS is currently underway based on April 2016 data, whereupon theemployer contribution rate is expected to be reassessed and will be payable from 1 April 2019.

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Principal actuarial assumptions

2019 2018% %

Rate of increase in salaries 2.60 2.60Rate of increase for pensions in payment/inflation 2.30 2.30Discount rate for scheme liabilities 1.90 2.80

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

2019 2018Years Years

Retiring todayMales 21.2 22.1Females 23.3 24.2Retiring in 20 yearsMales 22.3 23.9Females 24.7 26.1

Sensitivity analysis

2019 2018£000 £000

Discount rate +0.1% (118) (84)Discount rate -0.1% 118 84

The Academy Trust's share of the assets in the scheme was:

At 31August 2019

At 31 August2018

£ £

Equities 1,687,680 1,485,920Bonds 398,480 301,200Property 210,960 160,640Cash 46,880 60,240

Total market value of assets 2,344,000 2,008,000

The actual return on scheme assets was 4.9% (2018 - £97,000).

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The amounts recognised in the Statement of Financial Activities are as follows:

2019 2018£ £

Current service cost (331,000) (343,000)Past service cost (16,000) -Investment income 59,000 45,000Interest cost (93,000) (80,000)

Total amount recognised in the Statement of Financial Activities (381,000) (378,000)

Changes in the present value of the defined benefit obligations were as follows:

2019 2018£ £

At 1 September 3,140,000 3,031,000Current service cost 331,000 343,000Interest cost 93,000 80,000Employee contributions 52,000 50,000Actuarial losses/(gains) 683,000 (333,000)Benefits paid (19,000) (31,000)Past service costs 16,000 -

At 31 August 4,296,000 3,140,000

Changes in the fair value of the Academy Trust's share of scheme assets were as follows:

2019 2018£ £

At 1 September 2,008,000 1,706,000Investment income 59,000 45,000Actuarial gains 46,000 52,000Employer contributions 198,000 186,000Employee contributions 52,000 50,000Benefits paid (19,000) (31,000)

At 31 August 2,344,000 2,008,000

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Reconciliation of opening to closing defined benefit pension scheme liability

2019 2018£ £

Balance brought forward at 1 September 1,132,000 1,325,000Defined benefit pension scheme cost less contributions payable 149,000 157,000Defined benefit pension scheme finance cost 34,000 35,000Acturial losses/(gains) 637,000 (385,000)

Balance carried forward at 31 August 1,952,000 1,132,000

The amounts recognised in the Balance Sheet are as follows:

2019 2018£ £

Present value of the defined benefit scheme obligation (4,296,000) (3,140,000)Fair value of scheme assets 2,344,000 2,008,000

Net defined benefit pension scheme liability (1,952,000) (1,132,000)

24. 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.

25. Related party transactions

No related party transactions took place in the period of account, other than certain Trustees'remuneration and expenses already disclosed in Note 13.

Page 54

the complementary education academy limited · senior management team mrs roberta kelly -...

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