OWN_TRUST - Accounts

The trustees present their annual report together with the accounts and auditor's report of the charitable company for the year 1 September 2019 to 31 August 2020. The annual report serves the purposes of both a trustees' report, and a directors' report under company law.

The academy trust operates three primary academies across Peterborough. Its schools have a combined pupil capacity of 1365 once full expansion is complete and had a roll of 1264 at the school census on the 1 of October 2020. 1 of the 3 schools is expanding and is expected to reach full capacity within the next 3 years due to high demand for places and current oversubscription. There may be schools added to the Trust in future.

The academy trust is a company limited by guarantee and an exempt charity. The charitable company's memorandum and articles of association are the primary governing documents of the academy trust.

The charitable company operates as OWN Trust and includes the academies: Nene Valley Primary School, Orton Wistow Primary School and Woodston Primary School.

The trustees of OWN Trust are also the directors of the charitable company for the purposes of company law. Details of the trustees who served during the year, and to the date these accounts are approved, are included in the Reference and Administrative Details on page 1.

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

In accordance with normal commercial practice the Trust has purchased insurance to protect trustees and officers from claims arising from negligent acts, errors or omissions occurring whilst on Trust business. The insurance provides cover up to £10,000,000 on any one claim.

The Trust Board shall comprise of trustees or directors of the Trust. The number of trustees shall be not less than three but (unless otherwise determined by ordinary resolution) shall not be subject to any maximum. All trustees, on their appointment or election, give a written undertaking to the trustees to uphold the objects of the Trust.

The company shall have the following trustees:

- up to 11 trustees,

- the Chief Executive Officer,

- and a minimum of two parent trustees elected in the event that no local governing bodies are established.

Currently the Trust does operate Local Governing Bodies and the Terms of Reference dictate that 2 parent governors should be part of the membership.

The members make any appointment of trustees following a recruitment and selection process undertaken by the trustees. This is based on the skills audit undertaken annually and suitable candidates’ application via a curriculum vitae and interview.

The term of office for any Trustee (unless co-opted for a defined period) shall be 4 years, save that this time limit shall not apply to the Chief Executive Officer.

Subject to remaining eligible to be a particular type of Trustee, Trustees may be re-appointed or re-elected.

The Trust Board may also appoint co-opted Trustees for a defined period as detailed in the Trust’s Articles of Association.

The Articles outline that the trustees may appoint committees to be known as local governing bodies for each school. OWN Trust operates Local Governing Bodies.

During the period under review, the Trustees held 6 meetings. The training and induction provided for new trustees will depend on their existing experience.

All new Trustees will be given a tour of the Trust’s Academies and the chance to meet with staff and students. Where necessary, induction will provide training on charity and educational, legal and financial matters.

All relevant Trustees are provided with copies of policies, procedures, minutes, accounts, budget plans and other documents that they will need to undertake their role as trustees, including guidance from the Charity Commission. As there are potentially just a few new trustees in a year, induction tends to be done informally and is tailored specifically to the individual.

Due to COVID-19 a planned Trust Development Day was unable to go ahead, with the elements that could be, delivered remotely, in the following term (2020-21). The focus of the development day was planned to be around shared vision, strategic growth and understanding of Ofsted accountability.

OWN Trust is a multi-academy trust consisting of three constituent schools, namely:

• Nene Valley Primary School,

• Orton Wistow Primary School and

• Woodston Primary School.

Prior to conversion to academy status both Nene Valley Primary School and Woodston Primary School were Local Authority maintained schools and Orton Wistow Primary School was a Foundation School. All three schools were converter academies and currently there are no sponsored academies.

Each constituent school has a Local Governing Body (LGB) to which the Trust board delegates power, via the approved scheme of delegation. The LGBs have meetings each term and may form committees, alongside which they engage in the substantive work of the governance of each school. The activity of the LGB meetings of each constituent school are minuted and reported to the Trust Board each term. The composition of each LGB is determined by each school, reflecting key skill stakeholders of the school, and its membership is defined by the Terms of Reference. The scheme of delegation adopted by the Trust passes the responsibility for 100% of the budget allocation to each member school, therefore the LGBs are responsible for the financial management of their school. The budget plan for each school is proposed by the LGB for approval by the trustees whilst the day to day monitoring of this and other financial management matters are delegated to the LGB at each school.

The Trust Board is currently made up of seven trustees, the Chief Executive Officer and the Chair of the Board. The Trust Board meets 6 times a year to monitor the finances and educational progress of the pupils within each constituent school. The Trust Board has 2 sub-committees; the Finance and Audit committee and the HR committee. The Finance and Audit committee meet 3 times a year to review in detail the financial affairs of each constituent school, with the accounts being shared monthly with committee members. The role of the committee is to maintain an oversight of the Trust finances, governance, risk management and internal control, and value for money framework. It reports its findings at each meeting with the Trust Board.

Pay has been set down through the School Teachers Pay and Conditions (STPC) document. The proposed changes to each of the pay spines have been approved across all the pay ranges, and allowances for the September 2020 pay award are set out in the school teachers paying and conditions document 2020. Decisions about teachers’ pay progression must be linked to the performance management policy and are based on criteria set out in the Trust’s pay policy. The pay body will operate the pay policy as the ‘relevant body’, as defined in the STPCD and for the pay arrangements agreed for all support staff which will:

- grade posts appropriately within the conditions of employment identified in the current STPCD and the conditions of service for support staff employed by the pay body,

- take into account pay differentials between posts within the teachers of the pay body and support staff of the pay body;

- ensure that the annual appraisal of all teaching staff, including those absent from duty for any reason, is fairly and properly conducted in accordance with the schools appraisal policy by 31st of October at the latest; 31st of December for the headteacher.

Trustees have calculated the headteacher pay through reference to the school group guidance within the STPCD, with any posts covered by TUPE during conversion remaining at the same point unless the size of the school has changed. This is the case within 1 of the schools within the Trust.

Chief Executive Officer

The above arrangements also apply to the Chief Executive Officer. Pay has been determined by Trustees through reference to the STPCD 2020, including use of the Leadership Scales and school groups for a Trust of the current size. It has also been benchmarked and reviewed against comparable Multi Academy Trusts to ensure consistency within the market whilst ensuring it is subject to Trust growth and affordability.

The setting of the pay and remuneration for the CEO is devolved to a panel responsible for the CEO performance review.

The pay of the CEO is based upon the following elements:

• The total numbers within the Trust (taking into account any arrangements for children with special needs)

• The role as a headteacher within the Trust

• The additional responsibilities identified in the CEO job description

The CEOs salary will be externally benchmarked in future years.

Pay for other central posts (Chief Finance Officer, Trust Business Manager and Trust Estates Manager have been determined by job evaluation through the Trust’s HR providers.

As an open and transparent employer, OWN Trust invites all employees to access information regarding Trust performance via OWN Trust and School’s websites, in addition to cross trust sessions where Trust performance is discussed. All Local governing Bodies include staff governors who represent all staff and report back appropriate information. All staff are able to attend Trust and LGB meetings as observers in addition to the Trust AGM. For the academic year, 2020-21 staff will also receive an annual report which will give a comprehensive overview of Trust Performance.

Employees and Disabled Persons

Disability Matters

OWN Trust is committed to ensuring equality in employment. We ensure that our recruitment process is inclusive and accessible by:

• Making job adverts accessible

• Providing job details in accessible formats when requested (e.g. large print)

• Accepting applications in alternate formats

• Promoting our vacancies through a range of channels

• Providing reasonable adjustments as required

• Ensuring against discrimination

We support existing employees who acquire a disability or long-term health condition, enabling them to stay in work wherever possible.

Employee Consultation

We are committed to involving our staff in decision making and we regularly seek and listen to views of staff and their representatives. This helps us to shape what we do and how we do it. We do this by:

• Having regular staff meetings at a school level

• Surveying staff on a range of issues; wellbeing, engagement, benefits

• Meeting with union representatives on a regular basis to update on Trust plans and to consult on key policies which affect our staff.

Related party transactions have taken place within the Trust with the following individuals and companies:

• Peterborough Design & Management Services

- to advance for the public benefit, education in the United Kingdom, by establishing, maintaining, carrying on, managing and developing schools offering a broad and balanced curriculum or educational institutions which are principally concerned with providing full-time or part-time education for children of compulsory school age;

- to promote for the benefit of the inhabitants of Orton Wistow, Woodston, Nene Valley and the surrounding area the provision of facilities for recreation or other leisure time occupation of individuals who have need of such facilities by reason of their youth, age, infirmity or disablement, financial hardship or social and economic circumstances.

The Trust was specifically founded to be a primary focused multi-academy trust and the schools within the Trust are able to share best practice, staffing expertise and common experiences within the primary sector.

OWN – Opportunity, Work together, Nurture: key words that underpin everything that OWN is about.

We are passionate about nurturing a lifelong love of learning, so that the children and families we serve have the best opportunities to thrive. We work together with parents, pupils, staff and the wider communities across the Trust, to put learners at the centre of everything we do. We want to excite and motivate those who work with us and create real joy around learning.

Members of OWN Trust share an absolute commitment to working together and utilising the collective expertise that we have within the Trust. All our schools, as well as organisations outside of OWN, work together to accomplish things that would not be possible alone, whilst maintaining each school’s ‘OWN’ distinctive character. By combining the unique character of each school, we will work innovatively, share best practice and be accountable for positive outcomes for all learners.

A key driver is our focus on improvement. We continuously develop our staff, children and young people, to make us better and better. This aspiration to achieve excellence underpins all that we do.

The Trust is able to work collaboratively using expertise held within the Trust to share best practice, aiming to drive down costs through collective purchasing, investment in school estates, greater flexibility with staffing resources and career development. Over time, as we grow, it is expected that the greater centralisation of services will ensure increased efficiencies and internal expertise in specific areas, allowing school management to focus on teaching and learning and driving improved learning for pupils.

The Trust will need to grow to ensure financial viability. In order to achieve this the Trust is inviting like-minded primary schools to partner with the OWN Trust family, building on a culture of school independence and collaborative working.

Trust strategic objectives

OWN Trust has four strategic goals for this period

1. Educational excellence

2. Inspirational leadership

3. Operational efficiency

4. Strategic growth

1. Educational excellence

OWN Trust provides the best education for all trust pupils, of all abilities and backgrounds. We do this by:

• fostering a culture of outstanding performance, to deliver academic excellence

• utilising our best resources, skills and processes across the Trust

• retaining, recruiting and training skilled and talented people

• ongoing engagement with pupils, parents, governors and the Local Authority

2. Inspirational leadership

We aim to support and strengthen our team to provide outstanding and dynamic leadership across the Trust. We will do this by:

• empowering and developing our leaders to deliver this Trust strategy

• supporting the ongoing coaching and training of the leadership team

• mentoring at all levels for all staff, teaching and non-teaching

• promoting and rewarding best practice

• external benchmarking to drive improvement

• encouraging engagement with all key stakeholders

3. Operational excellence

We aim to operate to the highest standards and will achieve operational excellence by:

• achieving target Key Performance Indicators (KPIs)

• identifying opportunities to review all contracts utilising economies of scale

• pursuing appropriate revenue opportunities

• prudent financial management

• ongoing monitoring and review

4. Strategic growth

We aim to expand to 3000 pupils within five years by recruiting local like-minded primary schools. We will do this by:

• proactive networking with relevant stakeholders to drive the development of the Trust;

• researching and identifying schools who share our ethos and values,

• developing strong due diligence and on boarding processes;

• safeguarding the stability of the Trust;

• working alongside the senior leadership team to ensure they have the capacity and skills to develop and grow the Trust,

• growing the Trust in a measured way to ensure that standards are maintained and improved and that there is sufficient capacity to bring about transformation as required,

• The Regional Schools Commissioner will see OWN Trust as a desired option for sponsorship.

Activities

OWN Trust’s activities, in the reported year have been limited by the occurrence of COVID-19 and the subsequent period of lockdown, but have included:

• Further development of systems for rapid improvement, resulting in agreed systems across the Trust for assessment, comparison and monitoring,

• Growth in staffing to develop a very strong and experienced Early Years team

• Strong participation in local groups including Peterborough CEOs

• Further development of governance systems to ensure high quality information and decision making at all levels

• Establishment of middle leaders as part of the Trust Leadership group

• Successful internal and external audits

• Centralisation of finance operations and preparation for central roles within Estates Management and ICT

• Strong financial management to ensure the success of the Trust as a going concern

• Whole Trust CPD in curriculum development

• Enabling all staff to have a greater understanding of the vision and values of OWN trust through whole Trust events,

• Building the team of highly skilled senior leaders and school staff to collaborate on school improvement, assessment and curriculum.

The trustees confirm that they have complied with their duty to have due regard to the guidance on public benefit issued by the Charity Commission in exercising their powers and duties.

The Trust’s public benefit is incorporated into its objectives which are detailed on the principal activity section of the accounts report. The Trust considers that its aims are demonstrably to the public benefit. The Trust’s aim is to advance for the public benefit the education of pupils in Peterborough and surrounding areas in particular, but without prejudice to, the generality of the foregoing by estimating, maintaining, carrying on, managing and developing schools offering a broad curriculum.

Schools within the Trust provide facilities for recreational and other leisure time occupation for the community at large, in the interests of social welfare and with the interest of improving the life of the community.

The Trust was expecting to perform well overall in 2019-20 based on internal assessments and forecasts, although end of Key Stage assessments could not go ahead due to lockdown. The following outcomes are based on internal data, prior to lockdown alongside forecasts for the end of year.

The main KPI for each of the schools in the Trust is the OFSTED framework for inspection. Inspectors must judge the quality of education provided by each school. This is an overarching judgement made by inspecting and reporting on the following areas:

• The quality of education,

• Behaviour and attitudes,

• Personal development

• Leadership and management,

• Early years provision.

In addition, inspectors must consider

• The spiritual, moral, social and cultural development of the pupils in each school

• The extent to which the education provided by each school meets the needs of the range of pupils in the school and in particular the pupils who have a disability for the purposes of the Equality Act 2010 and those who have special educational needs.

The Trust self-evaluation is that Orton Wistow, Woodston and Nene Valley would be judged to be at least good.

Performance against the key performance indicator of assessment results is included in the previous section

Financial KPIs

The trust operates in line with the requirements of its funding agreement with the ESFA and manages its reserves in line with the policies set out within this document.

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, the board of trustees continues to adopt the going concern basis in preparing the accounts. Further details regarding the adoption of the going concern basis can be found in the statement of accounting policies.

Most of the Trust income is obtained from the Education and Skills Funding Agency (ESFA) in the form of recurrent grants, use of which is restricted to particular purposes. The grants received from the ESFA during the period ending the 31 August 2020 and the associated expenditure are shown as restricted funds in the statement of financial activities.

During the period, the schools within the trust received total revenue funding of £5,898,527 compared to total resources expended of £5,728,061 to give a surplus for the period of £170,466.

The Trust has £698,112 accumulated reserves carried forward, which has increased.

The total income, including capital funds, was £5,972,363 (2019: £12,889,932), with total expenditure, including capital expenditure, of £6,346,539 (2019: £3,013,501). The accumulated reserves, including capital funds, is £8,827,255 (2019: £9,515,431).

The complications created by COVID-19 and lockdown have led to a number of areas being underspent, with some areas receiving less funding than expected (e.g. self-generated income for childcare against staff costs when furlough was not an option). The trustees consider an appropriate level of reserves to be as defined in the reserves policy, to insulate the trust in the event of the ESFA funding becoming interrupted, and the carry forward at 31 August 2020 is considered to be in line with this objective.

Introduction

OWN Trust has established this reserves policy to protect its activities by providing financial buffers against an unpredictable environment and to make sufficient provision for future cash flow requirements. The policy also provides the framework for future strategic planning and decision-making. An effectively implemented reserves policy will mitigate the impact of any risk upon the continuing operations of OWN caused by funding uncertainty.

This policy and the establishment of reserve targets should be based on a continual assessment of the internal and external operating environment .

The policy takes into account the Academies Financial Handbook (AFH) and guidance from the Charity Commission.

Trusts should use their allocated GAG funding for the full benefit of their current pupils. If a trust has a substantial surplus they should have a clear plan for how it will be used to benefit their pupils, for example, a long-term capital project. The ESFA will report to the DfE any trusts where it has serious concerns about a long-term substantial surplus with no clear plans for its use.

The Charity Commission reminds trustees that:

• charity law requires any income received by the Trust to be spent within a reasonable period of receipt;

• a good reserves policy takes into account the Trust’s financial circumstances and other relevant factors;

• it is good practice to monitor the level of reserves throughout the year.

Types of reserves

Reserves are the representation of the cash balance available at the period end in charity accounts, which are used for academies. This cash is transferred into fund balances. These balances can be for ‘restricted’ or ‘unrestricted’ purposes, depending on their source.

Unrestricted reserves

Unrestricted reserves are derived from income funds, grants or donations that can be spent at the discretion of trustees in furtherance of any of the Trust’s objectives. If part of an unrestricted income fund is earmarked for a particular project it may be designated as a separate fund. However, the designation has an administrative purpose only and does not place restrictions on how the fund is eventually spent. Unrestricted reserves will be generally achieved through operating efficiencies and from trading company profits.

Restricted reserves

Restricted reserves are mainly derived from government grant funding through the ESFA (Education and Skills Funding Agency) but may also include other grants or donations provided for a specific purpose. Restricted reserves must be used in accordance with the limitations outlined in the original funding (in the case of ESFA funding this is as detailed in the Trust’s funding agreements).

Key policy principles

The following principles underpin the Trust’s approach to reserves management:

• the Trust will endeavour to set a balanced in-year revenue budget every year for the following financial year;

• two and three year projections will not be subject to the need to be balanced as work will be undertaken to mitigate against deficit budgets prior to being set for the following year;

• the Trust’s reserves balance should only decrease due to capital investment and or other organisational needs which shall at all times be approved by the Finance and Audit Committee;

• the Trust’s general reserves balance may be comprised of restricted or unrestricted reserves.

Trust general reserves balance

The Trust general reserves balance will be maintained at a level equivalent to between 5% and 10% of combined General Annual Grant for all schools. Therefore, if the combined GAG for the following year is forecast to be £10m the Trust reserves balance should be £1 million, but can remain between £500,000 and £1 million. This is the percentage that trustees regard as an appropriate level of reserves given the current operating environment. A general reserves balance higher than this figure must be supported by an appropriate plan, for example for expenditure on school improvement or capital works or to mitigate a specific foreseen risk.

School in year surplus balances

A school in year surplus balance over and above its agreed reserves contribution may normally be spent as determined by the school once the previous year’s accounts have been closed. Schools may designate these reserves to specific short-term projects that will be completed within two years, but reserves may not be carried forward for more than two years without the express approval of the Finance and Audit Committee.

Joiner schools

A surplus balance brought forward into the Trust by a joining school shall be deployed as follows, in priority order:

• to address urgent compliance and health and safety issues at the time of conversion as well as other urgent requirements determined by due diligence, e.g. school improvement, compliance and health and safety. Issues will normally be determined by a condition survey commissioned by the Trust;

• 90% of any remaining balance brought forward will be designated to the school to be spent at its discretion and 10% or the current percentage actual recharge costs will be added to the Trusts general reserves.

Expenditure against reserves balances

Trustees may temporarily decide to increase the reserves balance over the percentage of GAG target, for example to fund a specific school improvement initiative. Expenditure that subsequently draws on reserves must be approved in advance by the Finance and Audit Committee. In exceptional cases, for example where expenditure is necessary to comply with a statutory requirement, reserves may be spent without prior approval (but subject to purchasing authority limits within the finance regulations) but must be reported at the next Finance and Audit Committee meeting.

At the 31 August 2020 total funds comprised:

Unrestricted                  £523,033

Restricted:    Fixed asset funds        £11,527,143

Pension reserve     (£3,398,000)

General         £175,079

Total                     £8,827,255

OWN Trust aims to spend public money with which it has been entrusted for the direct educational benefit of pupils as soon as is prudent. The trustees do not consider the investment of surplus funds as a primary activity, rather as a good result of sound financial management as and when circumstances allow. The Trust aims to manage its cash balances to provide for the day-to-day working capital requirements of its operations whilst protecting the real long-term value of any surplus cash balances against inflation.

Each school within the Trust will prepare such budgets and cash flow forecasts as required to ensure viability and sustainability for the activities of each school.

The trustees of OWN Trust have overall responsibility and ultimate decision-making authority for all the work of the company including the establishment and running of schools. This is largely exercised through strategic planning and the setting of policy. It is managed through business planning, monitoring the budgets, performance management, the setting of standards and the implementation of quality assurance processes. The trustees have the power to direct change where required.

The trustees have delegated authority for the running of each of its constituent schools to Local Governing Bodies who, in turn, also fulfil a largely strategic role in the conduct of their schools by further delegating authority to a headteacher and senior leadership team who are responsible for the internal organisation management and control of the school on a day-to-day basis.

Based on the above process the Finance and Audit Committee undertakes a comprehensive review of the risks to which the Trust is exposed by regularly reviewing the risk management policy and risk register. The committee identifies systems and procedures, including specific preventable actions, which should mitigate any potential negative impact on any of the individual schools. An up to date assessment of risk is carried out as part of the agenda at all committee, LGB and Leadership group meetings.

The internal controls for managing risks deemed as medium and high are incorporated into an annual risk management action plan. The effectiveness of the Trust internal controls in managing the risks identified is regularly monitored at all levels.

A thorough appraisal will be undertaken in the year of the existing risks and any emerging risks, for example those arising from changes to national funding policy and/or local circumstances. In addition to the annual review, the Finance and Audit Committee will also consider any risks which arise during the year, for example, as a result of a new area of work being undertaken by the Trust.

A risk register covering low, medium and high-level risks is maintained at Trust level. The risk register identifies the key risks, the likelihood of those risks occurring, their potential impact on the Trust and the actions being taken to reduce and mitigate the risks. Risks are prioritised as low medium and high using a consistent scoring system.

The Trust’s approach to risk management raises awareness of risk throughout the whole of the Trust. in addition, headteachers incorporate risk management their reports and local school improvement plans. Outlined below is a description of the principal risk factors that may affect the Trust. However, not all factors are within the Trust’s control and other factors besides those listed below may also adversely affect Trust.

1. Government funding

The Trust has considerable reliance on continued government funding through the Education and Skills Funding Agency (ESFA) and the Local Authority.

The risk has, and will be mitigated in a number of ways

• funding is derived through a number of indirect arrangements;

• considerable focus and investment are placed on maintaining and managing key relationships with various funding bodies;

• ensuring the school is focused on these priority sectors which will continue to benefit from public funding;

• contingency planning embedded into the school budget process.

2. Maintain adequate funding of pension liabilities

The financial statements report share of the local government pension scheme deficit on the Trust’s balance sheet is in line with the requirements of our FRS 102.

3. Pupil strategy

The Trust seeks to maintain its popularity within each school with current and prospective pupils by;

• ensuring the school delivers high-quality education and training;

• maintaining outstanding success rates and good inspection outcomes, and

• investing in its teaching staff and resources.

With ongoing commitment to quality the Trust provides up-to-date and well resourced learning environments including resources that support and enrich a broad curriculum. Technology and mobile technology resources are deployed widely, ensuring good pupil access. This places the Trust in an excellent position to attract new pupils into schools.

OWN trust is compliant with the recognised standards of fundraising set out in the Code of Fundraising Practice. OWN Trust does not use professional fundraisers and there have been no complaints received by the Trust about fundraising activities carried about by the Trust in the year.

OWN Trust will continue to improve the levels of performance for all children and young people in terms of their academic outcomes, how they are able to look after their own well-being, and the contribution they make to society. OWN Trust schools use thorough self-evaluation to ensure there is a very good understanding about strengths and areas for improvement. The self-evaluation mechanisms are based on rigorous analysis of data, effective monitoring of teaching and learning by pupils in lessons, and through detailed learning scrutiny. In addition, the Trust seeks the views of all stakeholders, with a key focus on the views and opinions of pupils. OWN Trust makes good use of external validation from a range of partners to secure accurate judgements on the quality of provision and subsequent outcomes achieved.

Own trust has identified key areas for strategic improvement in the coming year and adequate resources will be targeted to meet these aims:

• optimising talent and leadership capacity across the Trust to impact outcomes for children and young people;

• enabling trust schools to achieve the highest OFSTED grade possible in the current inspection framework;

• developing governance so that at all levels it is the most effective it can be in challenging school leaders and rigorously holding them to account;

• focussing on well-being and workload for all staff so unnecessary tasks are removed;

• ensuring the curriculum provided across the whole Trust meets the needs of the children attending the schools and their local communities.

New academies will be added as part of the Trust expansion. These new academies will subscribe to the Trust ethos, aims and objectives, particularly when common principles are seen by the Board to benefit the pupils, parents and staff of the Trust.

In so far as the trustees are aware:

- there is no relevant audit information of which the charitable company's auditor is 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 auditor is aware of that information.

On 7 September 2020 Group Audit Services Limited trading as Baldwins Audit Services changed its name to Azets Audit Services Limited. The name they practice under is Azets Audit Services and accordingly they have signed their report in their new name.

A resolution proposing that Azets Audit Services be reappointed as auditor of the charitable company will be put to the members.

The trustees' report, incorporating a strategic report, was approved by order of the board of trustees, as the company directors, on 08 December 2020 and signed on its behalf by:

As trustees we acknowledge we have overall responsibility for ensuring that OWN Trust 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 OWN Trust and the Secretary of State for Education. The accounting officer is also responsible for reporting to the board of trustees any material weaknesses or breakdowns in internal control.

The information on governance included here supplements that described in the Trustees' Report and in the Statement of Trustees' Responsibilities. The board of trustees has formally met 3 times during the year. Attendance during the year at meetings of the board of trustees was as follows:

The finance and audit committee is a sub-committee of the main board of trustees.

Attendance at meetings in the year was as follows:

As accounting officer, the principal has responsibility for ensuring that the academy trust delivers good value in the use of public resources. The accounting officer understands that value for money refers to the educational and wider societal outcomes achieved in return for the taxpayer resources received.

The accounting officer considers how the academy trust’s use of its resources has provided good value for money during each academic year, and reports to the board of trustees where value for money can be improved, including the use of benchmarking data where available. The accounting officer for the academy trust has delivered improved value for money during the year by:

• developing systems for support and challenge across the Trust and all of its component schools;

• close collaboration of the leadership team at all levels within the Trust to develop expertise;

• where possible, having Trust wide service level agreements with external providers for facilities such as sports provision and educational psychology support;

• reducing costs, through the establishment of newly negotiated contracts and service level agreements for a range of support services;

• establishing robust financial controls and procedures throughout the Trust, specifically directed at achieving value for money; for example, by competitive tendering for auditors;

• commissioning high-quality advice and support for evaluation of administrative procedures.

The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk of failure to achieve policies, aims and objectives. It can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an on-going process designed to identify and prioritise the risks to the achievement of academy trust policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically. The system of internal control has been in place in OWN Trust for the period 1 September 2019 to 31 August 2020 and up to the date of approval of the annual report and accounts.

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 period 1 September 2019 to 31 August 2020 and up to the date of approval of the annual report and accounts. This process is regularly reviewed by the board of trustees.

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

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

• regular reviews by the finance and audit 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;

• identification and management of risks.

The governing body has considered the need for a specific internal audit function and have decided to appoint Azets Audit Services to perform the additional checks. This role includes giving advice on financial matters and performing a range of checks on the School's financial systems. Once a year the auditor reports to the finance and audit committee on the operation of the systems of control and on the discharge of the governing body's financial responsibilities.

This has been delivered within ESFA guidelines during the period.

The newly revised FRC Ethical Standard for auditors will impact on the services delivered to the trust and Governors are in the process of reviewing the internal scrutiny arrangements for the coming year.

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 internal reviewer;

• the work of the external auditor;

• the work of the external finance advisor;

• 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 audit committee and a plan to address weaknesses and ensure continuous improvement of the system is in place.

Approved by order of the board of trustees on 08 December 2020 and signed on its behalf by:

As accounting officer of OWN Trust, I have considered my responsibility to notify the academy trust board of trustees and the Education and Skills Funding Agency (ESFA) of material irregularity, impropriety and non-compliance with terms and conditions of all funding received by the academy trust, under the funding agreement in place between the academy trust and the Secretary of State for Education. As part of my consideration I have had due regard to the requirements of the Academies Financial Handbook 2019.

I confirm that I and the academy trust's board of trustees are able to identify any material irregular or improper use of funds by the academy trust, or material non-compliance with the terms and conditions of funding under the academy trust's funding agreement and the Academies Financial Handbook 2019.

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 ESFA.

The trustees (who are also the directors of OWN Trust for the purposes of company law) are responsible for preparing the trustees' report and the accounts in accordance with the Academies Accounts Direction 2019 to 2020 published by the Education and Skills Funding Agency, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

Company law requires the trustees to prepare accounts for each financial year. Under company law, the trustees must not approve the accounts 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 accounts, the trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP 2019 and the Academies Accounts Direction 2019 to 2020;

• make judgements 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 accounts; and

• prepare the accounts 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 accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for ensuring that in its conduct and operation the charitable company applies financial and other controls, which conform with the requirements both of propriety and of good financial management. They are also responsible for ensuring that grants received from ESFA/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 accounts may differ from legislation in other jurisdictions.

Approved by order of the members of the board of trustees on 08 December 2020 and signed on its behalf by:

Opinion

We have audited the accounts of OWN Trust for the year ended 31 August 2020 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the accounts, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice), the Charities SORP 2019 and the Academies Accounts Direction 2019 to 2020 issued by the Education and Skills Funding Agency.

In our opinion the accounts:

give a true and fair view of the state of the charitable company's affairs as at 31 August 2020 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;

have been prepared in accordance with the requirements of the Companies Act 2006; and

have been prepared in accordance with the Charities SORP 2019 and the Academies Accounts Direction 2019 to 2020.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 'Auditor's responsibilities for the audit of the accounts' section of our report. We are independent of the academy trust in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

the trustees' use of the going concern basis of accounting in the preparation of the accounts is not appropriate; or

the trustees have not disclosed in the accounts any identified material uncertainties that may cast significant doubt about the academy trust’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the accounts are authorised for issue.

Other information

The trustees are responsible for the other information, which comprises the information included in the annual report other than the accounts and our auditor’s report thereon. Our opinion on the accounts does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the accounts or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

In our opinion, based on the work undertaken in the course of the audit:

the information given in the trustees' report including the incorporated strategic report for the financial year for which the accounts are prepared is consistent with the accounts; and

the trustees' report including the incorporated strategic report has been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the academy trust and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report, including the incorporated strategic report.

We have nothing to report in respect of the following matters in relation to which 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 accounts are not in agreement with the accounting records and returns; or

certain disclosures of trustees' remuneration specified by law are not made; or

As explained more fully in the statement of trustees' responsibilities, the trustees are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error.

In preparing the accounts, the trustees are responsible for assessing the academy trust’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company, or have no realistic alternative but to do so.

Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these accounts.

A further description of our responsibilities for the audit of the accounts is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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

In accordance with the terms of our engagement letter dated 17 September 2020 and further to the requirements of the Education and Skills Funding Agency (ESFA) as included in the Academies Accounts Direction 2019 to 2020, we have carried out an engagement to obtain limited assurance about whether the expenditure disbursed and income received by OWN Trust during the period 1 September 2019 to 31 August 2020 have been applied to the purposes identified by Parliament and the financial transactions conform to the authorities which govern them.

This report is made solely to OWN Trust and ESFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to the OWN Trust and ESFA those matters we are required to state in a report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than OWN Trust and ESFA, for our work, for this report, or for the conclusion we have formed.

The accounting officer is responsible, under the requirements of OWN Trust’s funding agreement with the Secretary of State for Education dated 26 February 2019 and the Academies Financial Handbook, extant from 1 September 2019, for ensuring that expenditure disbursed and income received is applied for the purposes intended by Parliament and the financial transactions conform to the authorities which govern them.

Our responsibilities for this engagement are established in the United Kingdom by our profession’s ethical guidance, and are to obtain limited assurance and report in accordance with our engagement letter and the requirements of the Academies Accounts Direction 2019 to 2020. We report to you whether anything has come to our attention in carrying out our work which suggests that in all material respects, expenditure disbursed and income received during the period 1 September 2019 to 31 August 2020 have not been applied to purposes intended by Parliament or that the financial transactions do not conform to the authorities which govern them.

We conducted our engagement in accordance with the Academies Accounts Direction 2019 to 2020 issued by ESFA. We performed a limited assurance engagement as defined in our engagement letter.

The objective of a limited assurance engagement is to perform such procedures as to obtain information and explanations in order to provide us with sufficient appropriate evidence to express a negative conclusion on regularity.

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

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

The work undertaken to draw to our conclusion includes:

• a review of the activities of the academy, by reference to sources of income and other information available to us;

• sample testing of expenditure, including payroll;

• a review of minutes of Governors' and Trustee's meetings.

In the course of our work, nothing has come to our attention which suggests that in all material respects the expenditure disbursed and income received during the period 1 September 2019 to 31 August 2020 has not been applied to purposes intended by Parliament and the financial transactions do not conform to the authorities which govern them.

The accounts on pages 24 to 48 were approved by the trustees and authorised for issue on 08 December 2020 and are signed on their behalf by:

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

The accounts of the academy trust, which is a public benefit entity under FRS 102, have been prepared under the historical cost convention in accordance with the Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102), the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)), the Academies Accounts Direction 2019 to 2020 issued by ESFA, the Charities Act 2011 and the Companies Act 2006.

The trustees assess whether the use of going concern is appropriate, ie whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charitable company to continue as a going concern. The trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the accounts and have concluded that the academy trust has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the academy trust’s ability to continue as a going concern. Thus they continue to adopt the going concern basis of accounting in preparing the accounts.

The trustees have taken consideration of the effects of COVID-19 in making their assessment.

All incoming resources are recognised when the academy trust has entitlement to the funds, the receipt is probable and the amount can be measured reliably.

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 meeting any performance-related conditions there is not unconditional entitlement to the income and its recognition is deferred and included in creditors as deferred income until the performance-related conditions are met. Where entitlement occurs before income is received, the income is accrued.

General Annual Grant is recognised in full in the statement of financial activities in the period for which it is receivable, and any abatement in respect of the period is deducted from income and recognised as a liability.

Capital grants are recognised in full when there is an unconditional entitlement to the grant. Unspent amounts of capital grants are reflected in the balance sheet in the restricted fixed asset fund. Capital grants are recognised when there is entitlement and are not deferred over the life of the asset on which they are expended.

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

Other income, including the hire of facilities, is recognised in the period it is receivable and to the extent the academy trust has provided the goods or services.

Goods donated for resale are included at fair value, being the expected proceeds from sale less the expected costs of sale. If it is practical to assess the fair value at receipt, it is recognised in stock and ‘Income from other trading activities’. Upon sale, the value of the stock is charged against ‘Income from other trading activities’ and the proceeds are recognised as ‘Income from other trading activities’. Where it is impractical to fair value the items due to the volume of low value items they are not recognised in the accounts until they are sold. This income is recognised within ‘Income from other trading activities’.

Donated fixed assets are measured at fair value unless it is impractical to measure this reliably, in which case the cost of the item to the donor is used. The gain is recognised as income from donations and a corresponding amount is included in the appropriate fixed asset category and depreciated over the useful economic life in accordance with the academy trust‘s accounting policies.

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

All resources expended are inclusive of irrecoverable VAT.

This includes all expenditure incurred by the academy trust to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

These are costs incurred on the academy trust's educational operations, including support costs and costs relating to the governance of the academy trust apportioned to charitable activities.

These include the costs attributable to the academy trust's compliance with constitutional and statutory requirements, including audit, strategic management, trustees' meetings and reimbursed expenses.

Assets costing £1,000 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. Where there are specific conditions attached to the funding that require the continued use of the asset, 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 the relevant assets is charged directly to the restricted fixed asset fund in the statement of financial activities. Where tangible fixed assets have been acquired with unrestricted funds, depreciation on such assets is charged to the unrestricted fund.

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

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.

Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the academy trust anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods of services it must provide.

Rentals payable under operating leases are charged against income on a straight-line basis over the period of the lease.

The academy trust only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the academy trust and their measurement basis are as follows.

Trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments.

Cash at bank is classified as a basic financial instrument and is measured at face value.

Trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition.

Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument.

The academy trust 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 academy trust is potentially exempt from taxation in respect of income or capital gains received within categories covered by chapter 3 part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

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

The TPS is an unfunded scheme and contributions are calculated to spread the cost of pensions over employees' working lives with the academy trust in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary based on quadrennial valuations using a prospective unit credit method. The TPS is an unfunded multi-employer scheme with no underlying assets to assign between employers. Consequently, the TPS is treated as a defined contribution scheme for accounting purposes and the contributions are recognised in the period to which they relate.

The LGPS is a funded multi-employer scheme and the assets are held separately from those of the academy trust in separate trustee administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit credit 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 net income or expenditure are the current service costs and the costs of scheme introductions, benefit changes, settlements and curtailments. They are included as part of staff costs as incurred. Net interest on the net defined benefit liability/asset is also recognised in the statement of financial activities and comprises the interest cost on the defined benefit obligation and interest income on the scheme assets, calculated by multiplying the fair value of the scheme assets at the beginning of the period by the rate used to discount the benefit obligations. The difference between the interest income on the scheme assets and the actual return on the scheme assets is recognised in other recognised gains and losses. Actuarial gains and losses are recognised immediately in other recognised gains and losses.

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

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

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

Accounting estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

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

The present value of the Local Government Pension Scheme defined benefit liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost or income for pensions include the discount rate. Any changes in these assumptions, which are disclosed in note 21, will impact the carrying amount of the pension liability. Furthermore a roll forward approach which projects results from the latest full actuarial valuation performed at 31 March 2019 has been used by the actuary in valuing the pensions liability at 31 August 2020. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of the pension liability.

The academy trust has provided the following central services to its academies during the year:

• financial services;

• legal services;

• educational support services.

The academy trust charges for these services on the following basis:

• Apportionment of each individual school's GAG allocation compared to total GAG allocation.

The key management personnel of the academy trust comprise the trustees and the senior management team as listed on page 1. The total amount of employee benefits (including employer pension contributions and employer national insurance contributions) received by key management personnel for their services to the academy trust was £563,144 (2019 - £277,404).

One or more of the trustees has been paid remuneration or has received other benefits from an employment with the academy trust. The principal and other staff trustees only receive remuneration in respect of services they provide undertaking the roles of principal and staff members under their contracts of employment, and not in respect of their services as trustees.

The value of trustees' remuneration and other benefits was as follows:

Mr S Mansell (Chief Executive Officer)

    Remuneration £75,000 - £80,000 (2019 - £35,000 - £40,000)

    Employer’s pension contributions £15,000 - £20,000 (2019 - £5,000 - £10,000)

There have been no expenses reimbursed to Trustees during the period.

The academy trust has opted into the Department for Education’s Risk Protection Arrangement (RPA), an alternative to insurance where UK government funds cover losses that arise. This scheme protects trustees and officers from claims arising from negligent acts, errors or omissions occurring whilst on academy trust business, and provides cover up to £10,000,000. It is not possible to quantify the trustees and officers indemnity element from the overall cost of the RPA scheme.

Included within the leasehold land and buildings net book value is £1,003,299 of land which is not depreciated. There is a further £350,433 of land which is not depreciated included within the net book value of freehold land and buildings.

Deferred income includes amounts received in advance relating to Universal Infant Free School Meals and trips.

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

General Annual Grant (GAG) must be used for the normal running costs of the Academy Trust.

Other DFE / ESFA Grants comprise of various grants awarded for specific projects, in particular to boost standards of attainment. Grants include Pupil Premium funding which is intended to support education for pupils from a disadvantaged background.

Local Government Grants include funding provided for pupils with Statements of Special Educational Needs and is used by the academy to assist with the pupils education.

Devolved capital funding is that provided to academies to use as it sees fit in areas such as improvements to buildings or facilities, or the repair or refurbishment of such.

Other capital grants are provided to the academy based on specific bids for individual projects.

Other income comprises various other receipts including school meals. The income is classed as restricted or unrestricted based on the nature of the income.

The pension reserve arises from the actuarial measurement of the Academy Trust's share of the Local Government Pension Scheme deficit. This is recorded as a provision. The actuarial cost of employing staff during the year is initially reflected in the normal running costs of the school in the restricted pension fund.

General Annual Grant must be used for the normal running costs of the Academy Trust. Under the funding agreement with the Secretary of State, the Trust was not subject to a limit on the amount of GAG that it could carry forward at 31 August 2020.

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

The academy trust's employees belong to two principal pension schemes: the Teachers' Pension Scheme England and Wales (TPS) for academic and related staff; and the Local Government Pension Scheme (LGPS) for non-teaching staff, which is managed by Cambridgeshire County Council. Both are multi-employer defined benefit schemes.

The pension costs are assessed in accordance with the advice of independent qualified actuaries. The latest actuarial valuation of the TPS related to the period ended 31 March 2016, and that of the LGPS related to the period ended 31 March 2019.

There were no outstanding or prepaid contributions at either the beginning or the end of the financial year.

The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pension Scheme Regulations 2014. Membership is automatic for teachers in academies. All teachers have the option to opt out of the TPS following enrolment.

The TPS is an unfunded scheme to which both the member and employer makes contributions, as a percentage of salary. These contributions are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2016. The valuation report was published by the Department for Education on 5 March 2019.

The key elements of the valuation and subsequent consultation are:

• employer contribution rates set at 23.68% of pensionable pay (including a 0.08% employer administration charge)

• total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service to the effective date of £218,100 million, and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £196,100 million giving a notional past service deficit of £22,000 million

• the SCAPE rate, set by HMT, is used to determine the notional investment return. The current SCAPE rate is 2.4% above the rate of CPI. The assumed real rate of return is 2.4% in excess of prices and 2% in excess of earnings. The rate of real earnings growth is assumed to be 2.2%. The assumed nominal rate of return including earnings growth is 4.45%.

The next valuation result is due to be implemented from 1 April 2023.

The employer's pension costs paid to the TPS in the period amounted to £499,547 (2019: £167,123).

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

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

The LGPS is a funded defined benefit pension scheme, with the assets held in separate trustee-administered funds. The total contributions are as noted below. The agreed contribution rates for future years are 22.5% for employers and 5.5 to 12.5% for employees.

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

Scheme liabilities would have been affected by changes in assumptions as follows:

Related party transactions took place in the period of account along with certain trustees' remuneration and expenses already disclosed in note 12.

Transactions took place with Peterborough Design & Management Services Ltd – a company in which Mr R Waterman (a trustee) has a majority interest. The academy trust purchased property surveying services from Peterborough Design & Management Services Ltd totalling £900 (2019: £nil) during the period. There were no amounts outstanding at 31 August 2020 (2019: £nil).

Owing to the nature of the academy trust and the composition of the board of trustees being drawn from local public and private sector organisations, transactions may take place with organisations in which the trustees have an interest. All transactions involving such organisations are conducted in accordance with the requirements of the AFH and in accordance with the academy trust's financial regulations and normal procurement procedures relating to connected and related party transactions.

Some of the governors have children who are pupils at the academy, consequently there will be transactions between those governors and the academy in respect of their children’s education. These are on the same basis as other pupils at the academy.

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 or she is a member, or within one year after he or she ceases to be a member, such amount as may be required, not exceeding £10 for the debts and liabilities contracted before he or she ceases to be a member.