WYMONDHAM COLLEGE ACADEMY TRUST (A company limited by guarantee) ANNUAL REPORT AND FINANCIAL STATEMENTS PERIOD ENDED 31 AUGUST 2011

Transcription

1 (A company limited by guarantee) ANNUAL REPORT AND FINANCIAL STATEMENTS PERIOD ENDED 31 AUGUST 2011 Company registration number: (England and Wales)

2 CONTENTS Page Reference and administrative information 1 Report of the Governors 2-8 Statement on internal control 9 Statement of Governors responsibilities 10 Independent Auditor s report Statement of financial activities (incorporating Income and expenditure account) 13 Balance sheet 14 Cash flow statement 15 Notes to the financial statements 16-30

3 Reference and administrative details of the Academy, its Governors and Advisors Governors (Trustees): Company Secretary: Principal: The Visitor: Clerk to Governors: Registered office: Company registration number: Auditor: Bankers: Solicitors: Mr P Rout (Chairman) Mr I Baker Mr M Roffe Mr R Moorhouse Mr M Roffe BA FRSA FCOpt (Hon) Lady Ralphs CBE JP DL Mr R Moorhouse Wymondham College Golf Links Road Wymondham Norfolk NR18 9SZ (England and Wales) Lovewell Blake LLP Chartered Accountants and Statutory Auditor Bankside 300 Peachman Way Broadland Business Park Norwich NR7 0LB NatWest Bank plc 5 Market Place Wymondham Norfolk NR18 0AG NP Law Limited 7 St. Andrews Street Blackburn Lancashire BB1 8AE 1

4 REPORT OF THE GOVERNORS for the period ended 31 August 2011 Report of the Governors The Governors (who are Governors under the Academies Act 2010, Trustees under the Charities Act 1993 and Directors under the Companies Act 2006) present their annual report together with the financial statements of the charitable company for the period to 31 August The report has been prepared in accordance with Part VI of the Charities Act Wymondham College Academy Trust (the College ) was incorporated on 10 December 2010 and the Academy commenced on 1 February The financial statements have been prepared in accordance with the accounting policies on pages 16 to 18 of the attached financial statements, and comply with the College s Memorandum and Articles of Association, the Companies Act 2006 and the requirements of the Statement of Recommended Practice Accounting and Reporting by Charities as issued in March 2005 ( SORP 2005 ) and the Academies Financial Handbook. Structure, governance and management Constitution The Wymondham College Academy Trust is a company limited by guarantee with no share capital (registration no ). The College s Memorandum and Articles of Association dated 1 February 2011 are the prime governing documents of Wymondham College Academy Trust. Members liability The liability of the members of the College is limited. Every member of the College undertakes to contribute such amount as may be required (not exceeding 10) to the College s assets if it should be wound-up while he or she is a member or within one year after he or she ceases to be a member and of the costs, charges and expenses of winding-up, and for the adjustment of the rights of the contributories amongst themselves. Subject to the provisions of the Companies Act, every Governor or other officer or auditor of the College shall be indemnified out of the assets of the College against any liability incurred by them in that capacity in defending any proceedings, whether civil or criminal, in which judgement is given in favour or in which they are acquitted or in connection with any application in which relief is granted to them by the court from liability for negligence, default breach of duty or breach of trust in relation to affairs of the College. Governors The Governors are directors of the College for the purposes of the Companies Act 2006 and trustees for the purposes of the charity legislation. The term of office for any Governor shall be four years; this time limit shall not apply to the principal. Subject to remaining eligible to be a particular type of Governor, any Governor may be reappointed or re-elected. The Governors who served throughout the period and up to the date of this report are set out on page 1. I Baker, M Roffe and P Rout were appointed on 10 December The Governors confirm that in so far as they are aware, there is no relevant audit information of which the College s auditors are unaware. They have taken all the steps that they ought to have taken as Governors regarding audit information and its provision to the College s auditors. 2

5 REPORT OF THE GOVERNORS for the period ended 31 August 2011 Structure, governance and management (continued) Organisational structure The College s organisational structure consists of two primary levels: the Governors and the Executive, who are the Senior Management Team. Below the Senior Management Team sits the General College Board which is itself informed by the Heads of House and the Heads of Department meetings. The Governing Body s primary role is to approve the strategic direction and objectives of the College and monitor its progress towards those objectives. To do this effectively, the Governing Body has created various committees: The Finance and Executive Committee (meets at least six times per year); the Curriculum and Welfare Committee (meets at least three times per year); the Personnel and Staffing Committee (meets at least three times per year); the Estates Committee (meets at least three times per year) and the Audit Committee (meets at least three times per year). All of these committees report to the Full Governing Body (meets three times per year). The Governors have approved a scheme of financial delegation that allows budgetary responsibility to be delegated, through the Principal, to the lowest level. Governors are responsible for setting general policy, approving the strategic plan, adopting and approving the annual plan and budget and making major decisions about the direction of the College including capital expenditure and major staff appointments. Governors also hold an annual meeting with parents each year in which parents receive a number of presentations about the achievements and future plans for the College as well as receiving feedback from parents. The Senior Management Team control the College at an executive level, implement the policies approved by Governors and report to Governors through the various sub-committees and at the Full Governing Body meetings. Connected organisations The College has strong connections with Thetford Academy. When Thetford Academy was created in September 2010, the College was the lead sponsor of the Academy. The Chair of Governors and the Principal sit on the Governing Body of Thetford Academy. Wymondham College Enterprises Limited is a related party by virtue of the Principal, M Roffe, and Chair of Governors, P Rout, being directors of this company. Risk management The Governors have assessed the major risks to which the College is currently exposed and ensure that steps are taken to mitigate risks. This is done through the sub-committees and includes Educational risks such as the College not achieving the planned educational outcomes and maintenance and improvement on previous examination results, whole or partial building loss, financial and operational risks, including budget risks and health and safety reviews and safeguarding students. Some significant risks such as public and employee liability are covered by the College s insurance policy. Governors have directed the creation of a formal risk register that will be reviewed at least annually. The College operates a system of internal financial control and these are checked by the College s auditors and Responsible Officer and by the Department for education. The Governors acknowledge their role in this area per the following statement: 3

6 REPORT OF THE GOVERNORS for the period ended 31 August 2011 Structure, governance and management (continued) Statement On The System Of Internal Financial Controls As Governors, we acknowledge that we have overall responsibility for ensuring that Wymondham College Academy Trust has an effective and appropriate system of control, financial or otherwise. We are also responsible for keeping proper accounting records which disclose with reasonable accuracy, at any time, the financial position of the College and enable us to ensure that the financial statements comply with the requirements of the Companies Act. We also acknowledge responsibility for safeguarding the assets of Wymondham College Academy Trust and hence take reasonable steps for the prevention and detection of fraud and other irregularities and to provide reasonable assurance that: Wymondham College Academy Trust is operating effectively and efficiently; The assets of the College are safeguarded against unauthorised use or disposition; Proper records are maintained and financial information used within Wymondham College Academy or for publication is reliable; and The College complies with relevant laws and regulations. The College s system of internal financial control is based on a framework of regular management information and administrative procedures including as far as is possible, the segregation of duties and a system of delegation and accountability. In particular it currently includes: a full report to each Finance and executive Committee on the financial position of the College and income and expenditure compared to budget; a comprehensive set of financial rules and procedures; formal budgetary delegation in writing to budget holders along with explanatory notes on financial procedures for placing orders etc; identification and management of risks. Governors have appointed a Responsible Officer from within the Governing Body. The Responsible Officer s role includes attendance at all Finance and Executive Committee and Audit Committee meetings. The Responsible Officer may also attend any other meeting as required where there might be financial implications. The Responsible Officer formally reports to the Finance and Executive Committee on the systems of control. These arrangements can provide only reasonable and not absolute assurance that assets are safeguarded, transactions are authorised and properly recorded and that material errors or irregularities are either prevented or would be detected in a timely period. Objectives and activities Aims and Objectives of the College The principal object and activity of the College is to advance for public benefit the provision of education in the United Kingdom. In doing so it meets the requirements of the Funding Agreement signed by the Secretary of State for Education. It provides a balanced and broad curriculum, provides curriculum emphasis on Modern Foreign Languages and Technology and meets the requirements of the Schools Admissions Code in drawing up its own Admissions Policy. The Governors confirm that they have had due regard to the Charity Commission s guidance on public benefit. 4

7 REPORT OF THE GOVERNORS for the period ended 31 August 2011 Objectives and activities (continued) Wymondham College opened as an Academy on 1 February The main objectives of the College for the period ended 31 August 2011 are summarised as follows: to provide value for money for the funds expended; to ensure that the College is suitably staffed; to comply with all statutory and curriculum requirements; to develop and maintain links with local industry and the wider community in Norfolk including working with other educational establishments; to conduct the College s business in accordance with the highest standards of integrity, probity and openness. Strategies and Activities The College s Mission statement is: Wymondham College exists to enable young people to become happy, successful and useful citizens, to aim for excellence in all that they do and to find fulfilment in life. The College s Strategic Plan states that The ambition of the Wymondham College Strategic Plan is to transform Wymondham College from an outstanding secondary school to a truly exceptional one. To achieve this, the plan sets out targets against the following areas: campus and facilities; curriculum; teaching and student support; staffing; extra-curricular activities; the College and the wider world; operation and ethos. The plan is reviewed annually by Governors and the success in delivering many of the targets in the plan means that it will be reviewed and updated in the coming financial year. A summary of the achievements during the course of the period up until 31 August 2011 is outlined below. Equal Opportunities Policy Wymondham College recognises its commitment to students, staff, parents/carers and Governors and to the wider community based on the principle of promotion of self-respect and respect for others. As such we believe that discrimination is unacceptable and our equal opportunities policy seeks to foster all individuals abilities. In meeting the duties, all our actions will embody our College s key principles and values which include: We encourage young people to develop into good citizens to aim for excellence in all they attempt, to communicate effectively, work well in teams and to enjoy life. We strive to make the best possible provision for all students, staff, governors and those connected with the College regardless of disability, ethnicity, culture, religious belief, national origin or status, gender or sexual orientation. 5

8 REPORT OF THE GOVERNORS for the period ended 31 August 2011 Objectives and activities (continued) We respect diversity. We know that treating everyone equally is not simply a matter of treating everyone the same. We adopt the Norfolk Inclusion Statement s view that inclusion is The process of taking necessary steps to ensure that every young person is given an equality of opportunity to develop socially, to learn and enjoy community life. This means we do our best to make reasonable adjustments for disability, recognise and celebrate cultural differences and understand the different needs and experiences of boys and girls. We know that equality is not simply about protecting the potentially vulnerable. We believe that all students may be disadvantaged by the holding of prejudicial views, and seek to promote good relationships between all groups, and positive attitudes towards disabled people, people from different ethnic or cultural groups or faith backgrounds and people of different gender or sexual orientation. We value our staff for their ability and potential to help us make the best possible provision for the students in the College regardless of disability, ethnicity, culture, religious belief, national origin, gender or sexual orientation. We are proactive in our efforts to identify and minimise existing barriers or inequalities. We seek the views of all groups affected by the policies and work of our College and involve them in policy review where appropriate. We recognise our role in promoting community cohesion and actively encourage the participation in public life of all in the College. Disabled Persons Wymondham College recognises its responsibilities under the Disability Discrimination Act. The general duty to promote disability equality is owed to all disabled people which means that we have due regard to: Promote equality of opportunity between disabled people and other people Eliminate unlawful discrimination Eliminate disability related harassment Promote positive attitudes towards disabled people Encourage participation by disabled people in public life Take steps to take account of disabled people s disabilities, even where that involves treating disabled people more favourably than other people. Accessibility There is specific disability legislation in relation to disabled students and accessibility which means we plan strategically over time to: Increase access to the curriculum Make improvements to the physical environment of the College to increase access Make written information available to students in a range of different ways We must ensure that disabled students do not receive less favourable treatment and to do this the College has a duty to make reasonable adjustments. The College is developing a Single Equality Scheme (SES) which integrates our statutory duties in relation to race, disability and gender and promoting community cohesion. The duties cover staff, students and people using the services of the College such as parents. It also addresses the legislation relating to religion or belief, sexual orientation and age and therefore includes our priorities and actions to eliminate discrimination and harassment in these equality areas. 6

9 REPORT OF THE GOVERNORS for the period ended 31 August 2011 Objectives and activities (continued) Our SES and Action plan enables us to achieve a framework for action which covers all six equality strands and ensures that we meet our public sector duty responsibilities in an inclusive way. We will continue to meet our statutory duties by reporting annually on the progress of the SES and action plan. This will be reviewed annually by the Governing Body, through the Curriculum and Welfare Committee (CUWCOM) and will cover activity in relation to the six equality strands and promoting community cohesion. Achievements and performance In the period leading up to 31 August 2011 the following were achieved: The College successfully converted to Academy status on 1 February At A level, 52.8% achieved passes at Grade A*/B. The overall pass rate (A-E) was 97.6%. At GCSE, 42.5% achieved passes at A*/A. There were 90.3% of students who achieved five GCSE passes at Grades A-C including English and Maths. The new KS3/KS4 curriculum was implemented for all joiners from September The College completed and implemented its review of teaching staffing. The College began the review and consultation on boarding staffing. The International Centre, providing excellent language teaching facilities, was completed and occupied by the Modern Foreign Languages Department. The former Modern Foreign Languages Department accommodation was refurbished to provide office accommodation and teaching spaces to house the Student Services Centre. The College secured Central Government funding of 268K towards repairing the Sports Complex Roof. The College began its 60th Anniversary Celebrations Programme. Going concern After making appropriate enquiries, the Governing Body has a reasonable expectation that the College 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 Most of the College's income is obtained from the DfE in the form of recurrent grants, the use of which is restricted to particular purposes. The grants received from the DfE during the period ended 31 August 2011 and the associated expenditure are shown as restricted funds in the statement of financial activities. The College also receives grants for fixed assets from the DfE. In accordance with the Charities Statement of Recommended Practice, Accounting and Reporting by Charities (SORP 2005), such grants are shown in the Statement of Financial Activities as restricted income in the fixed asset fund. The restricted fixed asset fund balance is reduced by annual depreciation charges over the expected useful life of the assets concerned. 7

10 REPORT OF THE GOVERNORS for the period ended 31 August 2011 Financial review (continued) During the period ended 31 August 2011, the College received income of 3,713,979 from DfE in respect of General Annual Grant and other Government funding, 220,015 in the form of DfE capital grants, 1,878,705 fee income and 220,418 other income, giving total income of 6,033,117 for the period. Expenditure for the period amounted to 7,807,723. At 31 August 2011 the net book value of fixed assets was 32,547,484 and movements in tangible fixed assets are shown in note 14 to the financial statements. The assets were used exclusively for providing education and the associated support services to the pupils of the College. The College held fund balances at 31 August 2011 of 32,349,870 comprising a deficit of 1,153,045 of restricted funds, surplus of 32,860,207 of restricted fixed assets and surplus of 642,708 of unrestricted general funds. The deficit in restricted funds has arisen primarily as a result of the deficit on the local government pension fund of 1,140,000. Reserves and Investment Policy The College seeks to maximise returns from its investments, minimise risk and maintain flexibility and access to funds. Free reserves at the period end totalled 582,682 including 116,064 of designated funds. A new Reserves and Investment Policy will be adopted in financial year 2011/12. Plans for future periods For the coming financial year, the College plans to implement the following key objectives: Build a new Reception Building at the main entrance to the College to provide a more effective control of entry to the College improving traffic management and safety. Make the necessary internal changes to Peel Boarding House to allow the House to become a main school house accommodating Years 7-11 from September Continue to refine the Key Stage 3 and Key Stage 4 curriculum changes. Approve the new College Strategic Plan for the next 5 years. Auditors The appointment of the current auditors, Lovewell Blake LLP, is for a three-year period from The report of the Governors was approved by the Governors on 13 December 2011 and signed on their behalf by: Peter Rout Chairman of Governors 8

11 STATEMENT ON INTERNAL CONTROL Scope of responsibility The Governing Body has delegated the day-to-day responsibility to the Principal, 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 Wymondham College Academy Trust and the Secretary of State for Education. He is also responsible for reporting to the Governing Body any material weaknesses or breakdowns in internal control. The purpose of the system of internal control The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk of failure to achieve policies, aims and objectives; it can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an ongoing process designed to identify and prioritise the risks to the achievement of College 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 Wymondham College Academy Trust for the period ended 31 August 2011 and up to the date of approval of the annual report and financial statements. The risk and control framework The Governing Body has considered the need for a specific internal audit function and has decided not to appoint an internal auditor. However, the Governors have appointed Mr I Baker, one of the Governors, as Responsible Officer (RO). The RO s role includes giving advice on financial matters and performing a range of checks on the College s financial systems. On a quarterly basis, the RO reports to the Governing Body on the operation of the systems of control and on the discharge of the Governing Body s financial responsibilities. Review of effectiveness As Accounting Officer, the Principal has responsibility for reviewing the effectiveness of the system of internal control. During the period in question the review has been informed by: the work of the Responsible Officer; the work of the external auditor; the financial management and governance self assessment process; the work of the executive managers within the College who have responsibility for the development and maintenance of the internal control framework. The Accounting Officer has been advised of the implications of the result of their review of the system of internal control by the Finance and General Purposes Committee and a plan to address weaknesses and ensure continuous improvements of the system is in place. Approved by order of members of the Governing Body on 13 December 2011 and signed on its behalf by: Peter Rout Chairman of Governors Melvyn Roffe Accounting Officer 9

12 STATEMENT OF GOVERNORS RESPONSIBILITIES The Governors (who act as Trustees for charitable activities of Wymondham College Academy Trust and are also the directors of the College for the purposes of company law) are responsible for preparing the Report of the Governors and the financial statements in accordance with the Annual Accounts Requirements issued by the Young People s Learning Agency, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations. Company law requires the Governors to prepare financial statements for each financial year. Under company law the Governors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the College and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Governors are required to: select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charities SORP; make judgements and estimates that are reasonable and prudent; state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the College will continue in operation. The Governors are responsible for keeping adequate accounting records that disclose with reasonable accuracy the financial position of the College and enable them to ensure that the financial statements comply with the Companies Act They are also responsible for safeguarding the assets of the College and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Governors are responsible for ensuring that in its conduct and operation the College applies financial and other controls, which conform with the requirements both of propriety and of good financial management. They are also responsible for ensuring grants received from the YPLA/DfE have been applied for charitable purposes. The Governors are responsible for the maintenance and integrity of the corporate and financial information included on the College s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Approved by order of the members of the Governing Body on 13 December 2011 and signed on its behalf by: Peter Rout Chairman of Governors 10

13 INDEPENDENT AUDITOR S REPORT TO THE MEMBERS OF WYMONDHAM COLLEGE ACADEMY TRUST We have audited the financial statements of Wymondham College Academy Trust for the period ended 31 August 2011 on pages 13 to 30. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). This report is made solely to the College s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act Our audit work has been undertaken so that we might state to the College s members those matters we are required to state to them in an auditors report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the College and its members as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of governors and auditor As explained more fully in the Governors Responsibilities Statement set out on page 10, the Governors (who are also the directors of the College for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board s (APB s) Ethical Standards for Auditors. Scope of the audit of the financial statements A description of the scope of an audit of financial statements is provided on the APB s website at Opinion on financial statements In our opinion the financial statements: give a true and fair view of the state of the College s affairs as at 31 August 2011, and of its incoming resources and application of resources, including its income and expenditure, for the period then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Companies Act Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the Report of the Governors for the period for which the financial statements are prepared is consistent with the financial statements. Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: 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 governors remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit. 11

14 INDEPENDENT AUDITOR S REPORT TO THE MEMBERS OF WYMONDHAM COLLEGE ACADEMY TRUST (continued) Opinion on other matters prescribed by the Academy s funding agreement with the Secretary of State for Education The financial statements have been prepared in accordance with the Financial Reporting and Annual Accounts Requirements issued by the Department for Education in respect of the relevant financial period; Proper accounting records have been kept; and Grants made by the Department of Education have been applied for the purposes intended. RICHARD MORRIS FCA (Senior Statutory Auditor) For and on behalf of LOVEWELL BLAKE LLP, Statutory Auditor Bankside 300 Peachman Way Broadland Business Park Norwich NR7 0LB 12

15 STATEMENT OF FINANCIAL ACTIVITIES for the period ended 31 August 2011 (including Income and expenditure account) Restricted Unrestricted Restricted Fixed Total Funds Funds Asset Funds 2011 Note Incoming resources Incoming resources from generated funds: Voluntary income Activities for generating funds 3 172, ,489 Investment income 4 6, ,396 Incoming resources from charitable activities: Funding for the Academy s educational operations 5-3,713, ,015 3,933,994 Fee income 6 1,878, ,878,705 Catering income 36, ,347 Other incoming resources 7 5, ,136 Total incoming resources 2,099,123 3,713, ,015 6,033,117 Resources expended Charitable activities: Academy s educational operations 9 3,729,484 3,702, ,215 7,794,304 Governance costs 10-13,419-13,419 Total resources expended 8 3,729,484 3,716, ,215 7,807,723 Net outgoing resources before other recognised gains and losses (1,630,361) (2,045) (142,200) (1,774,606) Other recognised gains and losses Actuarial gains on defined benefit pension schemes 17/27-47,000-47,000 Net movement in funds (1,630,361) 44,955 (142,200) (1,727,606) Funds transferred at 1 February ,273,069 (1,198,000) 33,002,407 34,077,476 Funds carried forward at 31 August ,708 (1,153,045) 32,860,207 32,349,870 All of the College s activities derive from continuing operations during the financial period. A Statement of Total Recognised Gains and Losses is not required as all gains and losses are included in the Statement of Financial Activities. The notes on pages 16 to 30 form part of these financial statements. 13

16 Company No: WYMONDHAM COLLEGE ACADEMY TRUST BALANCE SHEET at 31 August 2011 Note 2011 Fixed assets Tangible assets 14 32,547,484 Current assets Debtors ,081 Cash at bank and in hand 2,209,088 2,569,169 Current liabilities Creditors: Amounts falling due within one year 16 1,626,783 Net current assets 942,386 Net assets excluding pension liability 33,489,870 Pension scheme liability 27 (1,140,000) Net assets including pension liability 17 32,349,870 Funds Restricted funds Restricted fixed asset fund 17 32,860,207 Restricted funds 17 (13,045) Pension reserve 17 (1,140,000) 31,707,162 Unrestricted funds General fund ,618 Deferred revenue 17 (10,033) Designated fund ,097 Fixed asset fund 17 60, ,708 Total funds 32,349,870 The financial statements were approved by the Governors, and authorised for issue on 13 December 2011 and are signed on their behalf by:... Peter Rout Chairman of Governors The notes on pages 16 to 30 form part of these financial statements. 14

17 CASH FLOW STATEMENT for the period ended 31 August 2011 Notes 2011 Net cash outflow from operating activities 21 (1,148,176) Returns on investments and servicing of finance 22 6,396 Capital expenditure ,015 Decrease in cash in the period 24 (921,765) Reconciliation of net cash flow to movement in net funds Cash transferred from Wymondham College at 1 February ,130,853 Net funds at 31 August ,209,088 15

18 NOTES TO THE FINANCIAL STATEMENTS for the period ended 31 August Statement of accounting policies Basis of preparation The financial statements have been prepared under the historical cost convention and in accordance with applicable United Kingdom Accounting Standards, the Charity Commission Statement of Recommended Practice: Accounting and Reporting by Charities (SORP 2005), the Academies Accounts Direction issued by the YPLA and the Companies Act A summary of the principal accounting policies, which have been applied consistently, except where noted, is set out below. Going concern The Governors assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the College to continue as a going concern. The Governors make this assessment in respect of a period of one year from the date of approval of the financial statements. Incoming resources All incoming resources are recognised when the College has entitlement to the funds, certainty of receipt and the amount can be measured with sufficient reliability. Grants receivable Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the balance sheet. Where income is received in advance of entitlement of receipt its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued. Donations Donations are recognised on a receivable basis where there is certainty of receipt and the amount can be reliably measured. Donated services and gifts in kind The value of donated services and gifts in kind provided to the College are recognised at their open market value in the period in which they are receivable as incoming resources, where the benefit to the College can be reliably measured. An equivalent amount is included as expenditure under the relevant heading in the Statement of Financial Activities, except where the gift in kind was a fixed asset in which case the amount is included in the appropriate fixed asset category and depreciated over the useful economic life in accordance with College s policies. Interest receivable Interest receivable is included within the Statement of Financial Activities on an accruals basis. Other income Other income, including the hire of facilities, is recognised in the period it is receivable and to the extent the goods have been provided or on completion of the service. 16

19 NOTES TO THE FINANCIAL STATEMENTS for the period ended 31 August Statement of accounting policies (continued) Resources expended All expenditure is recognised in the period in which a liability is incurred and has been classified under headings that aggregate all costs related to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charged allocated on the portion of the asset s use. Other support costs are allocated based on the spread of staff costs. All resources expended are inclusive of irrecoverable VAT. Charitable activities These are costs incurred on the College s educational operations. Governance costs These include the costs attributable to the College s compliance with constitutional and statutory requirements, including audit, strategic management and Governors meetings and reimbursed expenses. Tangible fixed assets Assets costing 5,000 or more are capitalised as tangible fixed assets and are carried at cost, net of depreciation and any provision for impairment. Where tangible fixed assets have been acquired with the aid of specific grants, either from the Government or from the private sector, they are included in the balance sheet at cost and depreciated over their expected useful economic life. The related grants are credited to a restricted fixed asset fund in the Statement of Financial Activities and carried forward in the balance sheet. Depreciation on such assets is charged to the restricted fixed asset fund in the Statement of Financial Activities so as to reduce the fund over the useful economic life of the related asset on a basis consistent with the College s depreciation policy. Depreciation Depreciation is provided on all tangible fixed assets other than freehold land, at rates calculated to write off the cost of each asset over its expected useful life, as follows: Freehold buildings Plant and machinery Fixtures and fittings Motor vehicles Computer equipment and software 2% straight line 10% straight line 10% straight line 25% reducing balance 25% straight line A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of Financial Activities. Leased assets Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the statement of financial activities on a straight line basis over the lease term. 17

20 NOTES TO THE FINANCIAL STATEMENTS for the period ended 31 August Statement of accounting policies (continued) Taxation The College is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the College is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. Pensions benefits Retirement benefits to employees of the College are provided by the Teachers Pension Scheme (TPS) and the Local Government Pension Scheme (LGPS). These are defined benefit schemes, are contracted out of the State Earnings-Related Pension Scheme (SERPS), and the assets are held separately from those of the College. The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees working lives with the College in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quinquennial valuations using a prospective method. As stated in note 27, the TPS is a multi employer scheme and the College is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. The TPS is therefore treated as a defined contribution scheme and the contributions recognised as they are paid each year. Local Government Pension Scheme The LGPS is a funded scheme and the assets are held separately from those of the College in separate trustee administered funds. Pension Scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent term and currency to the liabilities. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The amounts charged to operating surplus are the current service costs and gains and losses on settlements and curtailments. They are included as part of staff costs. Past service costs are recognised immediately in the Statement of Financial Activities if the benefits have vested. If the benefits have not vested immediately, the costs are recognised over the period until vesting occurs. The expected rate of return on assets and the interest cost are shown as a net finance amount of other finance costs or credits adjacent to interest. Actuarial gains and losses are recognised immediately in other gains and losses. Fund accounting Unrestricted income funds represent those resources which may be used towards meeting any of the charitable objects of the College at the discretion of the Governors. Restricted fixed asset funds are resources which are to be applied to specific capital purposes imposed by the Young People s Learning Agency where the asset acquired or created is held for a specific purpose. Restricted general funds comprise all other restricted funds received and include grants from the Young People s Learning Agency and other donors which are to be used for specific purposes. 18

21 NOTES TO THE FINANCIAL STATEMENTS for the period ended 31 August A. GENERAL ANNUAL GRANT (GAG) 2011 a. Results and Carry Forward for the Year GAG allocation for current year 3,218,668 Total GAG available to spend 3,218,668 Recurrent expenditure from GAG 3,209,713 GAG carried forward to next year 8,955 Maximum permitted GAG carry forward at end of current year (12% of allocation for current year) (386,240) GAG to surrender to DfE (12% rule breached if result is positive) NIL (no breach) 2. VOLUNTARY INCOME 2011 Donations ACTIVITIES FOR GENERATING FUNDS 2011 Rents received 3,180 Hire of facilities 169, , INVESTMENT INCOME 2011 Bank Interest 6,396 19

22 NOTES TO THE FINANCIAL STATEMENTS for the period ended 31 August FUNDING FOR THE ACADEMY S EDUCATIONAL OPERATIONS 2011 DfE/YPLA capital grants Academy main building gramts 220,015 DfE/YPLA revenue grants General Annual Grant (GAG) note 1A 3,218,668 Other DfE/YPLA Grants 46,538 Other Government grants School Mainstreamed Grants 414,900 One-to-One Tuition (NCC) 5,250 Harnessing Technology Grant (NCC) 4,571 Other income Attleborough High School Link 7,525 Fast Track Teacher Funding 1,066 Exam Re-sit Fees 13,761 Teacher Training PGCE Payments (UEA) 1,700 3,933, FEE INCOME 2011 Boarding fees 1,805,570 Day pupils fees 73,135 1,878, OTHER INCOMING RESOURCES 2011 Staff gas and electricity income 5,136 5,136 20

23 NOTES TO THE FINANCIAL STATEMENTS for the period ended 31 August RESOURCES EXPENDED Staff Other Total Costs Depreciation costs 2011 Charitable activities: Academy s educational operations Direct costs 4,648, ,888 1,415,758 6,435,686 Allocated support costs 354,320-1,015,298 1,369,618 FRS17 pension costs (11,000) - - (11,000) Governance costs including allocated support costs ,419 13,419 4,991, ,888 2,444,475 7,807,723 Incoming/outgoing resources for the year include: 2011 Operating leases 60,857 Fees payable to auditor audit 6, CHARITABLE ACTIVITIES ACADEMY S EDUCATIONAL OPERATIONS 2011 Direct costs Teaching and educational support staff costs 4,648,040 Depreciation 371,888 Educational supplies 135,594 Examination fees 114,067 Capital grant expenditure Traffic & International Centre 684,026 Educational consultancy 17,891 Other direct costs 464, ,435,686 Allocated support costs Support staff costs 354,320 Maintenance of premises and equipment 316,452 Cleaning 25,316 Rent and rates 74,875 Heat and light 108,077 Security 3,529 Transport 6,647 Catering 361,803 Technology costs 995 Advertising, marketing and recruitment 64,804 Bank interest and charges 629 Other support costs 52,171 1,369,618 Total charitable activities 7,805,304

24 NOTES TO THE FINANCIAL STATEMENTS for the period ended 31 August GOVERNANCE COSTS 2011 Auditors remuneration Audit of financial statements 6,500 Governors reimbursed expenses 6,919 13, STAFF COSTS Staff costs during the period were: 2011 Wages and salaries 4,095,257 Social security costs 306,182 Pension costs 600,921 FRS17 pension costs (11,000) 4,991,360 The average number of persons (including senior management team) employed by the College during the period ended 31 August 2011 expressed as full time equivalents was as follows: 2011 No. Charitable Activities Teachers, management, administration and support 245 Catering The number of employees whose emoluments fell within the following bands was: 2011 No. 60,001-70,000 1 The above employee participated in the Teachers Pension Scheme. During the period ended 31 August 2011, pension contributions for this staff member amounted to 9,

25 NOTES TO THE FINANCIAL STATEMENTS for the period ended 31 August GOVERNORS REMUNERATION AND EXPENSES Principal and staff Governors only receive remuneration in respect of services they provide undertaking the roles of Principal and staff and not in respect of their services as Governors. Other Governors did not receive any payments, other than expenses, from the College in respect of their role as Governors. The value of the Principal s remuneration was 69,282 in the period ended 31 August The value of staff Governor s remuneration was 41,502. During the period, travel, subsistence and out of pocket expenses totalling 6,919 were reimbursed to the Principal and two Governors. Related party transactions involving the Governors are set out in note GOVERNORS AND OFFICERS INSURANCE In accordance with normal commercial practice the College has purchased insurance to protect Governors and officers from claims arising from negligent acts, errors or omissions occurring whilst on College business. The insurance provides maximum cover up to 2,000,000 and the cost for the period 1 February 2011 to 31 August 2011 was TANGIBLE FIXED ASSETS Freehold Fixtures & land fittings, & plant & Motor buildings machinery vehicles Total Cost Assets transferred at 1 February ,840,000 54,399 24,973 32,919,372 At 31 August ,840,000 54,399 24,973 32,919,372 Depreciation Charged in period 362,215 6,031 3, ,888 At 31 August ,215 6,031 3, ,888 Net book values At 31 August ,477,785 48,368 21,331 32,547,484 All assets are used for educational purposes. The land and buildings were valued by an independent valuer on 1 February The valuation was carried out by Norfolk Property Services Limited. All assets with an initial cost of more than 5,000 were transferred to the College on 1 February 2011 and included on the fixed asset register. Assets with an initial cost of less than 5,000 were transferred to the College but not recorded on the fixed asset register. The value of the freehold land included in land and buildings is 1,793,000. This has not been depreciated. 23

26 NOTES TO THE FINANCIAL STATEMENTS for the period ended 31 August DEBTORS 2011 Trade debtors 47,665 Prepayments and accrued income 311,225 Other debtors 1, , CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2011 Trade creditors 191,112 Taxation and social security 241,222 Other creditors 873,125 Bank loan 10,033 Accruals and deferred income 311,291 1,626,783 The bank loan falling due within one year is secured by way of a charge over two of the staff houses owned by the College. 17. FUNDS Assets Gains, transferred at Incoming Resources losses and Balance at 1 February Resources expended transfers 31 August Restricted funds General Annual Grant (GAG) and other DfE/YPLA grants - 3,713,979 (3,727,024) - (13,045) Pension reserve (1,198,000) - 11,000 47,000 (1,140,000) (1,198,000) 3,713,979 (3,716,024) 47,000 (1,153,045) Restricted fixed asset funds DfE/YPLA capital grants 152, , ,749 Donated assets 32,849,673 - (362,215) - 32,487,458 33,002, ,015 (362,215) - 32,860,207 Total restricted funds 31,804,407 3,933,994 (4,078,239) 47,000 31,707,162 Unrestricted funds General fund 2,098,993 2,028,921 (3,661,296) - 466,618 Deferred revenue (19,838) 10,656 (851) - (10,033) Designated fund 124,215 59,546 (57,664) - 126,097 Fixed asset fund 69,699 - (9,673) - 60,026 Total unrestricted funds 2,273,069 2,099,123 (3,729,484) - 642,708 Total funds 34,077,476 6,033,117 (7,807,723) 47,000 32,349,870 24