ACORN ACADEMY CORNWALL

Transcription

1 Registered number: ACORN ACADEMY CORNWALL ANNUAL REPORT AND FINANCIAL STATEMENTS

2 CONTENTS Page Reference and administrative details of the academy, its trustees and advisers 1-2 Trustees' report 3-14 Governance statement Statement on regularity, propriety and compliance 18 Trustees' responsibilities statement 19 Independent auditors' report Independent reporting accountant's assurance report on regularity Statement of financial activities Balance sheet 26 Cash flow statement 27 Notes to the financial statements 28-49

3 REFERENCE AND ADMINISTRATIVE DETAILS OF THE ACADEMY TRUST, ITS TRUSTEES AND ADVISERS Members Acorn Academy Ltd Mr J-L Janet Mr S R Page (resigned 6 January ) Ms N-J A Macdonald (appointed 1 March ) Trustees Mr S R Page (resigned 6 January ) Mr J-L Janet 1,2 Mr R J Gasson, Principal 1,2,3 Mr M Robinson (resigned 5 March ) Ms K Welton, Parent Trustee (appointed 16 October 2013) Mrs D Fishbourne (appointed 16 October 2013, resigned 28 February ) Mr P Cornish (resigned 26 March ) Mr C Liles Mr J Harvey Mr N Maslen (appointed 16 October 2013, resigned 17 September ) Mr W Randle Mrs S Goswell Prof. M J Watkins, Chair (appointed 1 March ) Ms N-J A Macdonald (appointed 1 March ) Company registered number Audit Committee 2 Finance Committee 3 Executive Committee Registered office Principal operating office Accounting officer Senior management team The School House Nine Maidens Four Lanes Redruth Cornwall TR16 6ND 6 The Setons, Tolvaddon Energy Park Tolvaddon Camborne Cornwall TR14 0HX Mr R J Gasson Mr R Brokenshire, Headteacher - Glynn House AP Academy Mr D Black, Headteacher - The Community and Hospital Education Service Mr R J Gasson, Principal Mr A Goodman, Business Manager Mr V Gribbin, Headteacher - Caradon AP Academy Mr G Owens, Headteacher - Penwith AP Academy Mr W Rule, Headteacher - Restormel AP Academy Mr J Stocker, Headteacher - Nine Maidens AP Academy Mr R Triggs, Headteacher - North Cornwall AP Academy Page 1

4 REFERENCE AND ADMINISTRATIVE DETAILS OF THE ACADEMY TRUST, ITS TRUSTEES AND ADVISERS Administrative details (continued) Independent auditors Bankers Actuary Bishop Fleming LLP Chartered Accountants Statutory Auditors Salt Quay House 4 North East Quay Sutton Harbour Plymouth PL4 0BN Barclays plc Dalton Road Barrow in Furness Cumbria LA14 1JH Hymans Robertson LLP One London Wall London EC2Y 5EA Page 2

5 TRUSTEES' REPORT The Trustees present their annual report together with the financial statements and auditors report of the Charitable Company for the year ended 31 August. The annual report serves the purpose of both a Trustees report, and a Directors report under company law. The Trust operates 7 special academies in Cornwall. It's academies have a combined pupil capacity of 300 and had a roll of 269 in the school census on 10 January. STRUCTURE, GOVERNANCE AND MANAGEMENT Constitution The Academy Trust was incorporated on 25 February 2013 and opened as an Academy on 1 June 2013 and 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 Acorn Academy Cornwall are also the directors of the Charitable Company for the purposes of company law. Details of the Trustees who served throughout the year, except as noted, are included in the Reference and Administrative Details on pages 1 to 2. Members liability Each member of the Charitable Company undertakes to contribute to the assets of the Company in the event of it being wound up while he/she is a member, or within one year after he/she ceases to be a member, such amount as may be required, not exceeding 10, for the debts and liabilities contracted before they cease to be a member. Trustees' Indemnities Trustees benefit from indemnity insurance purchased at the Academy Trust s expense 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, provided that any such insurance shall not extend to any claim arising from any act or omission which the Trustees knew to be a breach of trust or breach of duty or which was committed by the Trustees in reckless disregard to whether it was a breach of trust or breach of duty or not and provided also that any such insurance shall not extend to the costs of any unsuccessful defence to a criminal prosecution brought against the Trustees in their capacity as Directors of the Academy Trust. In accordance with normal commercial practice the Academy Trust has purchased insurance to protect Trustees and officers from claims arising from negligent acts, errors or omissions occurring whilst on Academy Trust business. The insurance provides cover up to 1,000,000 on any one claim. TRUSTEES Method of recruitment and appointment or election of Trustees On 1 June 2013 the Trustees appointed all the chairs of the previous management committees to sit on the Multi Academy Trust Board. These Trustees were appointed for a term of office that would end when their original term at the predecessor school would have ended, thus ensuring a staggered re-election or replacement process. The Academy Trust shall have the following Trustees as set out in its Articles of Association and funding agreement: up to 10 Trustees who are appointed by members. up to 1 LA Trustees who are appointed by Cornwall Council. up to 2 Parent Trustees who are elected by the Board of Trustees. up to 1 staff Trustee appointed by the Board of Trustees. up to 5 Alternative Provision Academy Trustees who are appointed by the chairmen of the Local Governing Bodies. the Principal who is treated for all purposes as being an ex officio Trustee. Page 3

6 TRUSTEES' REPORT (continued) Trustees are appointed for a four year period, except that this time limit does not apply to the Principal. Subject to remaining eligible to be a particular type of Trustee, any Trustee can be re-appointed or re-elected. When appointing new Trustees, the Board will give consideration to the skills and experience mix of existing Trustees in order to ensure that the Board has the necessary skills to contribute fully to the Academy Trust's development. Policies and Procedures adopted for the Induction and Training of Trustees The training and induction provided for new Trustees will depend upon their existing experience but would always include a tour of the Academy Trust and a chance to meet staff and pupils. All Trustees are provided with copies of policies, procedures, minutes, accounts, budgets, plans and other documents that they will need to undertake their role as Trustees. As there are normally only two or three new Trustees a year, induction tends to be done informally and is tailored specifically to the individual. Organisational Structure The Board of Trustees normally meets once each term. The Board establishes an overall framework for the governance of the Academy and determines membership, terms of reference and procedures of Committees and other groups. It receives reports including policies from its Committees for ratification. It monitors the activities of the Committees through the minutes of their meetings. The Board may from time to time establish Working Groups to perform specific tasks over a limited timescale. There are 12 committees as follows: Remuneration Committee To make any decisions under the Governing Body s personnel procedures e.g. disciplinary, grievance, capability where the Principal is the subject of the action To act as an appeal body to any decisions made by the Principal relating to any member of staff, under the Governing Body s personnel procedures To make any determination or decision under the Governing Body s General Complaints Procedure for Parents and others To make any determination or decision under the Governing Body s Curriculum Complaints Procedure, in respect of National Curriculum disapplications, and the operation of the Governing Body s charging policy To arrange to meet with the Principal to discuss the Head teacher s performance targets To decide, with the support of the Principal, whether the targets have been met and to set new targets annually To monitor through the year the performance of SMT members To make recommendations to the MAT Board in respect of pay awards for the successful meeting of targets set To determine pay levels for all members of SMT, including increments To act as the appeal committee of the Pay Moderation Sub Group Pay Moderation Sub Group To make any decisions under the Governing Body s agreed pay policy Moderate and agree all pay progressions, and start points for new starters below senior management team level, in line with the pay policy Pupil Discipline Committee To consider representations from parents in the case of exclusions of 5 days or less (Committee may not re-instate) To consider representations from parents in the case of exclusions totalling more than 5 but not more than 15 school days in one term (meeting to be held between 6th and 50th school days after receiving notice of the exclusion) To consider the appropriateness of any permanent exclusion or any exclusion where one or more fixed period exclusions total more than 15 school days in one term or where a pupil is denied the chance to take a public examination (meeting to be held between 6th and 15th school days after receiving notice of the exclusion) To ensure that the guidance contained in the Improving Attendance and Behaviour document is practised in the school, with specific reference to the role assigned to the Governing Body. To review the School Behaviour and Discipline Policy, and make recommendations on changes to the Page 4

7 TRUSTEES' REPORT (continued) Governing Body or relevant committee Any items which individual governing bodies may wish to include Audit Committee To review the actions and judgements of management in relation to the Academy Trust s financial statements, it s operating and financial review To review the Academy Trust s procedures for detecting fraud and whistle-blowing and ensure that arrangements are in place by which staff may, in confidence, raise concerns about possible improprieties in matters of financial reporting, financial control or any other matters To review management s reports on the effectiveness of the systems for internal financial control, financial reporting and risk management To monitor the integrity of the Academy Trust s internal financial controls To review the statement in the annual report and accounts on the Academy Trust s internal controls and risk management framework To assess the scope and effectiveness of the systems established by management to identify, assess, manage and monitor financial and non-financial risks To review the effectiveness of the financial procedures and controls To recommend to the Board of Trustees the appointment or re-appointment of auditors To give consideration to the audit plan, in advance of the field work To review with the external auditors, the findings of their work, including, any major issues that arose during the course of the audit and have subsequently been resolved and those issues that have been left unresolved; key accounting and audit judgements; levels of errors identified during the audit, obtaining explanations from management and, where necessary the external auditors, as to why certain errors might remain unadjusted To review and monitor the content of the external auditor s management letter, in order to assess whether it is based on a good understanding of the Academy Trust s business and establish whether recommendations have been acted upon and, if not, the reasons why they have not been acted upon Executive Committee Finance To draft the annual budget To establish and maintain an up to date 3 year financial plan To consider a budget position statement at least termly and to report significant anomalies from the anticipated position to the Governing Body To ensure that the school operates within the Financial Regulations of the Academy regulations To monitor expenditure of all voluntary kept on behalf of the Governing Body To annually review charges and remissions policies and expenses policies To make decisions in respect of service agreements To make decisions on expenditure following recommendations from other committees and within the budget agreed by the MAT Board To ensure that Health and Safety and Safeguarding issues are appropriately prioritised To determine whether sufficient are available for pay increments as recommended by the Headteachers In the light of the Headteacher Performance Management Group s recommendations, to determine whether sufficient are available for increments Curriculum To consider and advise the governing body on standards and other matters relating to the school s curriculum, including statutory requirements and the School s Curriculum Policy To consider curricular issues which have implications for Finance and Personnel decisions and to make recommendations to the relevant committees or the Governing Body To make arrangements for the Governing Body to be represented at School Improvement discussions with the LA and for reports to be received by the Governing Body To oversee arrangements for individual governors to take a leading role in specific areas of provision, eg SEN, Literacy, Numeracy. To receive regular reports from them and advise the Governing Body. To oversee arrangements for educational visits, including the appointment of a named co-ordinator Page 5

8 TRUSTEES' REPORT (continued) Premises To advise the Governing Body on priorities, including Health and Safety, for the maintenance and development of the school s premises To oversee arrangements for repairs and maintenance To make recommendations to the MAT Board on premises-related expenditure (above 10,000) To oversee premises-related funding bids To oversee arrangements, including Health and Safety, for the use of school premises by outside users, subject to governing body policy To establish and keep under review a Building Development Plan To establish and keep under review an Accessibility plan Staffing To draft and keep under review the staffing structure To establish a Salary Policy for all categories of staff and be responsible for its administration and review To oversee the appointment procedure for all staff To establish and review a Performance Management policy for all staff To oversee the process leading to staff reductions To keep under review staff work/life balance, working conditions and well-being, including the monitoring of absence To make recommendations on personnel related expenditure to the Finance Committee To consider any appeal against a decision on pay grading or pay awards, below SMT level Pupil Performance Sub Group x 7 To challenge and monitor pupil performance, including overall effectiveness, achievement of pupils, quality of teaching, behaviour and safety of pupils, leadership and management To challenge monitor and support pupil attendance, progression, attainment, exclusions, admissions and safeguarding referrals To act as a pupil placement panel and admissions panel to their setting. The following decisions are reserved to the Board of Trustees; to consider any proposals for changes to the status or constitution of the Academy and its committee structure, to appoint or remove the Chairman and/or Vice Chairman, to appoint the Headteacher and Clerk to the Trustees, to approve the Annual Development Plan and budget. The Trustees are responsible for setting general policy, adopting an annual plan and budget, approving the statutory accounts, monitoring the Academy by the use of budgets and other data, and making major decisions about the direction of the Academy, capital expenditure and staff appointments. The Trustees have devolved responsibility for day to day management of the Academy to the Executive Committee, the Executive Committee implement the policies laid down by the Trustees and report back to them on performance. Page 6

9 TRUSTEES' REPORT (continued) The Academy has a leadership structure which consists of the Trustees and the Executive Committee. The aim of the structure is to devolve responsibility and encourage involvement in decision making at all levels. The Executive Committee (EXC) consists of the Principal, Headteachers of the 7 APAs and the Academy Business Manager. The EXC controls the Academy at an executive level, implementing the policies laid down by the Trustees and reporting back to them. The Principal, Headteachers, Academy Business Manager and Finance Committee are responsible for the authorisation of spending within agreed budgets; a summary of this is in the Scheme of Delegation. Some spending control is devolved to Budget Holders which must be authorised in line with the Scheme of Delegation. The Principal is responsible for the appointment of staff, although appointment panels for leadership posts always include a Governor. The Principal is the Accounting Officer. Connected Organisations, including Related Party Relationships The Academy is sponsored by Acorn Care & Education who through the DfE recognised sponsor programme are responsible for ensuring the performance of the Academy is maintained. The Academy has strong collaborative links with all schools in Cornwall. OBJECTIVES AND ACTIVITIES Objects and Aims The principal object and activity of the Academy is to advance for the public benefit education in the United Kingdom, in particular by establishing, maintaining, carrying on, managing and developing a school, offering a broad range of curriculum for pupils of different abilities, with a strong emphasis on reintegration. The principal object and activity of the Charitable Company is the operation of Acorn Academy Cornwall to provide free education and care for pupils of different abilities between the ages of 5 and 16. Acorn Academy Cornwall is an Alternative Provision (AP) Multi Academy Trust (MAT) that comprises of 6 regional AP Academies, The Community and Hospital Education Service (CHES a medical AP Academy) and two Area Nurture Groups. We provide support to enable pupils to reintegrate into mainstream or special schools; or in the last four terms of compulsory education, integration into the world of work or further education. Page 7

10 TRUSTEES' REPORT (continued) The aims of the Academy during the period ended 31 August are summarised below: Provide a balanced and broad curriculum that promotes the spiritual, moral, cultural, mental and physical development of pupils and prepares them for the opportunities, responsibilities and experiences of adult life Give access to the National Curriculum; provide opportunities for external accreditation, and, for those pupils with specific learning difficulties, effective and personalised programmes. Enable pupils to improve their behaviour to a socially accepted level and offer effective and appropriate support for their emotional difficulties Respect all pupils and encourage them to become active participants in their own learning, develop confidence, independence, self esteem and express their needs and desires Seek effective links with pupils families, schools and other professional agencies Seek effective outcomes with regard to placement Objectives, Strategies and Activities Key priorities for the year are contained in our Academy Development Plan which is available from the Academy Office. Improvement focuses identified for this year include: Increase accountability Stronger and more defined governance structure Series of KPIs that are reported on at all levels leading to an improvement in performance (pupils) Attendance Attainment Progression Placement Ability to chart own course and respond to need more quickly Ensure better continuity and consistency across the County: Move to a whole Academy holistic approach One referral form, one reporting form. Removal of statistical anomalies Core curriculum offer across Cornwall One standard SEF, SDP format Movement towards single central database to provide bench marking opportunities Continuity of information/data throughout the service allows students to access provisions on offer across the service more effectively Realise savings for investment: Proper understanding of our costs Intelligent procurement Ability to innovate Pupils: Personalised Learning Plans developed according to pupils specific needs e.g catch literacy / numeracy Baseline Assessments : Reading/ Spelling, Goal Assessments to determine gaps in learning Boxall Profiles Core curriculum Offer KS 2/3 in line with national expectations KS4 Curriculum offer : Minimum 5 GCSE including English, Maths, Science, Art, Photography, other qualification according to staff specialism at different AP's Off Learning site Learning Opportunities for some, at colleges or other providers, to gain additional qualifications. Public Benefit The Trustees confirm that they have complied with the duty in Section 17(5) of the Charities Act 2011 to have due regard to the Charity Commission's general guidance on public benefit in exercising their powers or duties. They have referred to this guidance when reviewing the Academy Trust's aims and objectives and in planning its future activities. Page 8

11 TRUSTEES' REPORT (continued) STRATEGIC REPORT Achievements and Performance The Academy is in its second year of operation and has exceeded the forecast number of students. The average number of pupils on role during the year was 304, the highest number of students on role at one time was 334. The academy was heavily oversubscribed during the year. We have successfully moved the CHES office into new premises in Camborne, this has already enabled us to strengthen the administrative offer to CHES APA, resulting in significant improvements to the referral process. Progress and attendance data is strong across all groups, with no significant variation between vulnerable groups. Most pupils show good progress from a previous poor level of engagement. I am able to report an average progress measure across the MAT of 1.8 points progress per term, pupils prior to coming to us were only achieving 0.9 points progress. ACC Caradon Cyber school Glynn House Nine North Maidens Cornwall Penwith Restormel KS2 Progress Progress Prior English Maths Science Writing KS3 Progress Progress Prior English Maths Science KS4 Progress Progress Prior English Maths Science Gender Male Female Category Permanent Exclusion School Support Medical CIC Yes All Pupils Statement of SEN Yes All Pupils Attendance Prior Admission 61% 69% NA 65% 75% 71% 80% 65% Page 9

12 TRUSTEES' REPORT (continued) Post Admission 86% 96% 85% 83% 89% 89% 80% 77% Exclusions for last 12 months Prior Admission Post Admission The average progress and attainment data for Year 11 leavers puts AAC into the top 20% of performers in the PIXL partnership of similar provisions (29 schools). Pupils continue to show excellent progression post 16 with a wide variety of options being pursued by our Year 11 leavers, these range from a level 2 Yacht finishing course at college to attending college to study for A levels. Notable successes include one pupil who came to us with a history of non-engagement which included attending 9 secondary schools, who is now undertaking an Art & Design course at college, having achieved a grade B in GCSE Art in just over a term. Another pupil completed Year 11 with us having previously been unwilling to attend school for three years, he is now studying Music at college having had the opportunity to record and perform with us, as part of the curriculum. These examples are the tip of the iceberg in terms of the enormous steps taken by all stakeholders, not least the pupils themselves, in achieving success for the vast majority of the 90 pupils who finished with us in Year 11. They also do not include those pupils who were reintergrated back into school in year 10 during the academic year 12/13 or in Year 11 who were reintegrated during the academic year 13/14. We are currently showing a 98% success rate of achieving placements for pupils post 16. Academy CHES Penwith North Cornwall Restormel Nine Caradon Maidens Glynn House AAC Total Number in Cohort A*-C Grades % 1% 0% 0% 0% 0% 63% 0% 9% 5 A*-G Grades % 6% 66% 0% 42% 70% 91% 10% 40% 5 A*-C with En/Ma % 1% 0% 0% 0% 0% 0% 0% 3% En A*-C % 61% 44% 25% 8% 0% 40% 0% 25% Ma A*-C % 38% 11% 0% 25% 0% 0% 0% 11% En Expected progress % 86% 89% 50% 71% 90% 55% 69% 73% Ma Expected progress % 76% 87% 50% 71% 70% 55% 62% 67% Year 11 Average attendance % 88% 85% 88% 83% 87% 90% 81% 86% Pupil Premium students % 40% 56% 0% 50% 60% 45% 61% 45% Neet % 8% 0% 0% 0% 10% 0% 0% 2.5% SEN info on Cohort eg. Number of statements To ensure that standards are continually assessed, the Academy operates a programme of lesson observations, which are undertaken by the Heads and the Senior Leadership Team. During the year the Academy was successful with two capital bids to the EFA, for works at Glynn House and Nine Maidens. The introduction of staff bursaries has been a success with three pieces of high quality action research being published. Page 10

13 TRUSTEES' REPORT (continued) KPI's & Reporting Requirements Description KPI/Target Data Requirement (termly) Pupils reintegrated into an appropriate provision within 2 years Y 100% Staff who have contact with service users who have undergone CRB checks Y 100% Staff who have contact with service users who have received up to date Safeguarding Training Y 100% Average attendance (non sick children & young people) improves Y + 20% as identified by referring school or is no less than 90% KS4 Pupils who have been on role at least two terms should achieve 1 GCSE (or equivalent) Y 100% KS4 Pupils who have been on role as least two terms achieving 5 GCSE (or equivalent ) Y 50% % + Number of pupils re-integrated in to mainstream/appropriate provision/eet Y 100% Number of permanently excluded pupils who are offered a place in the APA within 6 days of the formal notification of permanent exclusion Y 100% Attendance rates (shown as a percentage of the total possible of sessions Y available as per OFSTED guidance Number of pupils dual registered Y Number of pupils single registered Y Average length of stay (Days/Weeks/Years) Y Average length of stay (yr 10/11) Refers to school year groups. Y Staff Absence Y Number of Safeguarding Alerts (specifying what type of alerts) Y Number of Notification Referrals to MARU (Multi Agency Referral Unit) Y Compliments and Complaints received Y Finance reports & current budget position Y Number of staff with relevant teaching qualifications Y Number of staff with relevant training and experience Y Staff turnover Y No. of national qualifications offered to Pupils outside of core curriculum Y Number of fixed term exclusions from APA s. Y No Permanent exclusions from APA s Y Monitoring of referrals is undertaken and data used to inform service Y development Pupils are able to demonstrate improved outcomes as per Y OFSTED requirements in the year following exit Number of Racist incidents reported and how they have been handled Y Number of Homophobic incidents reported and how they have been Y handled Number of restrictive physical interventions Y Number of physical attacks on staff Y Number of local placements Y Number of data security breaches Y Page 11

14 TRUSTEES' REPORT (continued) Key Performance Indicators The main financial performance indicator is the level of reserves held at the Balance Sheet date. In particular, the management of spending against General Annual Grant (GAG) requires special attention - the amount of carry forward is not restricted. In the period under review, 13,456 of GAG income was carried forward. Total PAN (Pupil Admission Numbers) was 300. The figure was pro-rated in 2013 to reflect the short accounting period. Measure Result Cash balances at the year end 990,802 Total unrestricted balance 729,112 PAN to teacher ratio 300:58 Teaching to non-teaching staff ratio 58:41 Total income per PAN 20,050 Total GAG per PAN 9,925 Ratio of GAG to total income 1:2 Staff costs per PAN 13,162 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 Going concern policy. FINANCIAL REVIEW Half of the Academy's income is obtained from the DfE via the EFA in the form of recurrent grants, the use of which is restricted to particular purposes. The grants received from the DfE during the year ended 31 August and the associated expenditure are shown as Restricted Funds in the Statement of Financial Activities. The Academy also receives grants for fixed assets from the DfE and 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 useful life of the assets concerned, as defined in the Academy s accounting policies. During the year ended 31 August, total expenditure of 5,998,523 was covered by recurrent grant funding from the DfE, together with other incoming resources totalling 6,015,152. At 31 August the net book value of fixed assets was 5,865,829 and movements in tangible fixed assets are shown in note 17 to the financial statements. The assets were used exclusively for providing education and the associated support services to the pupils of the Academy. The land, buildings and other assets were transferred to the Academy upon conversion. Land and buildings were valued at 6,093,987, and this valuation was formally approved by the Finance Committee on 16 October Other assets have been included in the financial statements at a best estimate, taking into account purchase price and remaining useful lives. The Academy has taken on the deficit in the Local Government Pension Scheme in respect of its non teaching staff transferred on conversion. The deficit is incorporated within the Statement of Financial Activity with details in Note 26 to the financial statements. Key financial policies adopted or reviewed during the period include the Finance Policy which lays out the framework for financial management, including financial responsibilities of the Board, Head Teacher, managers, budget holders and other staff, as well as delegated authority for spending. Other policies reviewed and updated included Charges and Lettings, Asset Management and Insurance. Page 12

15 TRUSTEES' REPORT (continued) The Trustees have appointed Bishop Fleming to undertake a programme of internal checks on the financial controls. The Trustees have received 2 reports from Bishop Fleming during the year in which no significant issues were reported. Reserves Policy The Trustees review the reserve levels of the Academy annually. This review encompasses the nature of income and expenditure streams, the need to match income with commitments and the nature of reserves. The Trustees take into consideration the future plans of the Academy, the uncertainty over future income streams and other key risks identified during the risk review. The Trustees have determined that the appropriate level of free cash reserves should be approximately 300,000. The reason for this is to provide sufficient working capital to cover delays between spending and receipt of grants and to provide a cushion to deal with unexpected emergencies such as urgent maintenance but also to provide for major capital expenditure that may be required within the next 5 years. The Academy s current level of reserves (total less the amount held in fixed assets and restricted ) is 729,112 of which all is free reserves. The additional reserves are required due to the start up phase of the Academy. The Trustees have reviewed the future plans of the Academy and have commissioned a report on capital expenditure but no specific items have been decided. Investment Policy All surplus to immediate requirements are invested to optimal effect. Surplus are transferred to deposit account as and when necessary. Where cash flow allows, sums in excess of 100,000 may be invested on deposit for extended periods of between 1 and 3 months. Due to the nature of funding, the Academy may at times hold cash balances surplus to its short term requirements. No other form of investment is authorised. Trustees are committed to ensuring that all under their control are managed in such a way as to maximise return whilst minimising risk. Any cash not required for operating expenses is placed on deposit at the most favourable rate available from providers covered by the Financial Services Compensation Scheme. Day to day management of the surplus is delegated to the Principal and Business manager within strict guidelines approved by the Board of Trustees. PRINCIPAL RISKS AND UNCERTAINTIES The principal risks and uncertainties facing the Academy are as follows: Financial - the Academy has considerable reliance on continued Government funding through the EFA. In the last period 50% of the Academy's incoming resources was ultimately Government funded and whilst this level is expected to continue, there is no assurance that Government policy or practice will remain the same or that public funding will continue at the same levels or on the same terms. Failures in governance and/or management - the risk in this area arises from potential failure to effectively manage the Academy's finances, internal controls, compliance with regulations and legislation, statutory returns, etc. The Trustees continue to review and ensure that appropriate measures are in place to mitigate these risks. Reputational - the continuing success of the Academy is dependant on continuing to attract applicants in sufficient numbers by maintaining the highest educational standards. To mitigate this risk Trustees ensure that student success and achievement are closely monitored and reviewed. Safeguarding and child protection - the Trustees continue to ensure that the highest standards are maintained in the areas of selection and monitoring of staff, the operation of child protection policies and procedures, health & safety and discipline. Staffing - the success of the Academy is reliant on the quality of its staff and so the Trustees monitor and review policies and procedures to ensure continued development and training of staff as well as ensuring there is clear Page 13

16 TRUSTEES' REPORT (continued) succession planning. Fraud and mismanagement of - The Academy has appointed a Responsible Officer/internal audit to carry out checks on financial systems and records as required by the Academy Financial Handbook. All finance staff receive training to keep them up to date with financial practice requirements and develop their skills in this area. The Academy has continued to strengthen its risk management process throughout the period by improving the process and ensuring staff awareness. A risk register is maintained, reviewed and updated on a regular basis. PLANS FOR FUTURE PERIODS The Academy will continue to strive to provide outstanding education and improve the levels of performance of its pupils at all levels. The Academy will continue to aim to attract high quality teachers and support staff in order to deliver its objectives. The Academy will continue to work with partner schools to improve the educational opportunities for students in the wider community. FUNDS HELD AS CUSTODIAN TRUSTEE ON BEHALF OF OTHERS The Academy and its Trustees do not act as the Custodian Trustees of any other Charity. AUDITORS In so far as the Trustees are aware: there is no relevant audit information of which the charitable company's auditors are unaware; and 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 auditors are aware of that information. The auditors, Bishop Fleming LLP, are willing to continue in office and a resolution to appoint them will be proposed at the annual general meeting. Trustees' report, incorporating a strategic report, approved by order of the Board of Trustees, as company directors, on... and signed on the board's behalf by: Mr J-L Janet Trustee Mr R J Gasson Principal Page 14

17 GOVERNANCE STATEMENT SCOPE OF RESPONSIBILITY As Trustees, we acknowledge we have overall responsibility for ensuring that Acorn Academy Cornwall 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 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 Acorn Academy Cornwall 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 Trustees' responsibilities statement. The Board of Trustees has formally met 5 times during the year. Attendance during the year at meetings of the Board of Trustees was as follows: Trustee Meetings attended Out of a possible Mr S R Page 1 1 Mr J-L Janet 5 5 Mr R J Gasson, Principal 5 5 Mr M Robinson 2 2 Ms K Welton, Parent Trustee 1 4 Mrs D Fishbourne 2 2 Mr P Cornish 2 3 Mr C Liles 3 4 Mr J Harvey 4 5 Mr N Maslen 3 4 Mr W Randle 1 4 Mrs S Goswell 3 5 Prof. M J Watkins, Chair 3 3 Ms N-J A Macdonald 4 4 Mr S R Page was appointed a Chair of Trustees on 1 June 2013 and stood down as chair on 6 January. Ms N-J A MacDonald took over as Acting Chair from 9 December 2013 until 25 March. Prof. M J Watkins was appointed as Chair of Trustees on 25 March. Governance reviews: The Directors will review the governance structure of the Academy Trust on an annual basis. The next review will be undertaken in September The Finance Committee is a sub-committee of the Board of Trustees. Its purpose is the implementation and monitoring of the Academy's financial procedures. It is also responsible for treasury management and monitoring of budgetary control systems. Attendance at meetings in the year was as follows: Trustee Meetings attended Out of a possible Mr R J Gasson 2 3 Mr J-L Janet 3 3 Mr A Goodman (Business Manager) 3 3 The Audit Committee is a sub-committee of the main Board of Trustees. Its purpose is to review the actions and judgements of management in relation to Financial Reporting, monitor the integrity and effectiveness of Internal Controls, assess the scope and effectiveness of the systems for Risk Management, be responsible for the Page 15

18 GOVERNANCE STATEMENT (continued) Internal Audit function and manage the relationship with External Auditors. Attendance at meetings in the year was as follows: Trustee Meetings attended Out of a possible Mr R J Gasson 2 3 Mr J-L Janet 3 3 Mr A Goodman (Business Manager) 3 3 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 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 Acorn Academy Cornwall for the year 1 September 2013 to 31 August 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 ongoing process for identifying, evaluating and managing the Academy Trust's significant risks, that has been in place for the year 1 September 2013 to 31 August 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 Committee of reports which indicate financial performance against the forecasts and of major purchase plans, capital works and expenditure programmes; setting targets to measure financial and other performance; clearly defined purchasing (asset purchase or capital investment) guidelines. delegation of authority and segregation of duties; identification and management of risks. The Board of Trustees has considered the need for a specific internal audit function and has decided not to appoint an internal auditor. However, the Trustees have appointed Bishop Fleming LLP, the external auditors, to perform additional checks. The auditors' role includes giving advice on financial matters and performing a range of checks on the Academy Trust's financial systems. On a twice yearly basis, the auditors report to the Board of Trustees on the operation of the systems of control and on the discharge of the Board of Trustees' financial responsibilities. Two reports were received covering the financial year, in which there were no significant issues reported. Page 16

19 GOVERNANCE STATEMENT (continued) REVIEW OF EFFECTIVENESS As Accounting Officer, the Principal has responsibility for reviewing the effectiveness of the system of internal control. During the year in question the review has been informed by: the work of the external auditors; the financial management and governance self-assessment process; the work of the executive managers within the Academy Trust who have responsibility for the development and maintenance of the internal control framework. The Accounting Officer has been advised of the implications of the result of their review of the system of internal control by the Finance and Audit Committees and a plan to ensure continuous improvement of the system is in place. Approved by order of the members of the Board of Trustees on and signed on its behalf, by: Mr J-L Janet Trustee Mr R J Gasson Accounting Officer Page 17

20 STATEMENT ON REGULARITY, PROPRIETY AND COMPLIANCE As Accounting Officer of Acorn Academy Cornwall I have considered my responsibility to notify the Academy Trust Board of Trustees and the Education Funding Agency of material irregularity, impropriety and noncompliance with EFA terms and conditions of funding, under the funding agreement in place between the Academy Trust and the Secretary of State. As part of my consideration I have had due regard to the requirements of the Academies Financial Handbook. I confirm that I and the Academy Trust Board of Trustees are able to identify any material, irregular or improper use of by the Academy Trust, or material non-compliance with the terms and conditions of funding under the Academy Trust's funding agreement and the Academies Financial Handbook. I confirm that no instances of material irregularity, impropriety or funding non-compliance have been discovered to date. If any instances are identified after the date of this statement, these will be notified to the Board of Trustees and EFA. Mr R J Gasson Accounting Officer Date: Page 18

21 TRUSTEES' RESPONSIBILITIES STATEMENT The Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for preparing the Trustees' report (including the Strategic report) and the financial statements in accordance with the Annual Accounts Direction issued by the Education Funding Agency, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations. Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charitable Company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to: select suitable accounting policies and then apply them consistently; observe the methods and principles of the Charities SORP; 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 explain the Charitable Company's transactions and disclose with reasonable accuracy at any time the financial position of the Charitable Company and enable them to ensure that the financial statements comply with the Companies Act They are also responsible for safeguarding the assets of the Charitable Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for ensuring that in its conduct and operation the Charitable Company applies financial and other controls, which conform with the requirements both of propriety and of good financial management. They are also responsible for ensuring grants received from EFA/DfE have been applied for the purposes intended. The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Approved by order of the members of the Board of Trustees and signed on its behalf by: Mr J-L Janet Trustee Date: Page 19

22 INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ACORN ACADEMY CORNWALL We have audited the financial statements of Acorn Academy Cornwall for the year ended 31 August which comprise the Statement of financial activities, the Balance sheet, the Cash flow statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and the Academies Accounts Direction 2013 to issued by the Education Funding Agency. This report is made solely to the Academy Trust'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 Academy Trust'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 Academy Trust and its members, as a body, for our audit work, for this report, or for the opinion we have formed. RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND AUDITORS As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the Academy Trust for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors. SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Academy Trust's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Trustees; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Trustees' report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. OPINION ON FINANCIAL STATEMENTS 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 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Companies Act 2006 and the Academies Accounts Direction 2013 to issued by the Education Funding Agency. OPINION ON OTHER MATTER PRESCRIBED BY THE COMPANIES ACT 2006 In our opinion the information given in the Trustees' report, incorporating the Strategic report, for the financial year for which the financial statements are prepared is consistent with the financial statements. Page 20