HARLANDS_EDUCATIONAL_TRUS - Accounts

The trustees present their annual report together with the financial statements and the independent auditor's report of the charitable company for the year 1 September 2022 to 31 August 2023. The annual report serves the purposes of both a trustees' report, a directors' report and a strategic report under company law.

The academy trust operates an academy for pupils aged 4 to 11 serving a catchment area in Haywards Heath. It has a pupil capacity of 420 and had a roll of 418 in the school census on 7 October 2022.

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

The trustees of Harlands Educational Trust are also the directors of the charitable company for the purposes of company law. The charitable company operates as Harlands Primary School.

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.

The academy trust maintains trustees’ and officers’ liability insurance which gives appropriate cover for legal action brought against the trustees. The academy trust has also granted indemnities to each of its trustees and other officers as permitted by law. Qualifying third party indemnity provisions (as defined by section 234 of the Companies Act 2006) were in force during the period and remain in force, in relation to certain losses and liabilities which the trustees or other officers may incur to third parties in the course of acting as trustees or officers of the academy trust.

When a parent trustee position becomes vacant, nominations, supported by two other parents, will be invited from any eligible parent of pupils currently on the school roll. In the event of more nominations being received than there are vacancies, an election process will be organised within the school.

Should no nominations be forthcoming, the remaining trustees may take a decision to appoint a non-parent trustee instead, subject to ensuring that there are always at least two parent trustees in post. This appointment, as for any other non-parent trustee appointment, will be achieved by the trustee body identifying any particular skills which may be of benefit to the academy trust and seeking nominations through advertising on the school website, parent newsletters and the wider community as appropriate.

All new trustees have an induction briefing with the principal and the chair of trustees, and are appointed a designated mentor to enable them to fulfil their role at the academy trust. All trustees are subject to a Disclosure and Barring Service (DBS) check.

All trustees are encouraged to complete training sessions organised for the education sector. Training sessions for new trustees are provided by West Sussex County Council (WSCC) and online by Learning Link.

The management system operates at two levels, being the trustee body (the trustees) and the senior leadership team (SLT). Leadership is devolved at all levels to develop skills in strategic planning and decision making and to plan for succession. The principal is responsible for the day-to-day running of the school, supported by the SLT.

The full governing body meets formally at least 4 times during the academic year. In addition, the trustee body appoints 3 committees to which the following functions are delegated.

Resources committee – responsible for the overall review of the resources of the school community to ensure they are used strategically and to best effect;

Audit committee – responsible for assurances relating to the management of risk and corporate governance requirements;

School improvement committee – responsible for the standards of achievement, attendance and curriculum development.

In addition, individual trustees have delegated responsibilities for safeguarding, special educational needs, health and safety, finance, legal, premises and curriculum development areas.

The trustees set the strategic direction of the school in collaboration with the SLT. They set the annual budget and rigorously monitor the effectiveness of spending against key objectives. The SLT are responsible for allocating agreed budgets to subject and departmental leaders. Spending is linked to action plans and effectiveness reported to the trustees via the curriculum team reviews, principal reports and the audit committee.

The staffing plan is developed by the principal and monitored, reviewed and agreed by the trustee body annually. The trustee body is involved in all senior staffing appointments and gives delegated powers to the SLT for other appointments. As good practice, a trained member of the trustee body is usually involved in senior teaching appointments.

The remuneration of key management personnel is reviewed and agreed by the pay review committee. All staff, including the leadership group, can expect to receive regular, constructive feedback on their performance, and are subject to an appraisal process that recognises their strengths, informs plans for their future development and helps enhance their professional practice. Decisions regarding pay progression for teachers and the leadership group will be made with reference to performance and pay recommendation. Annual pay progression is not guaranteed and is dependent on performance. However, teachers and school leaders can expect to progress to the top of their pay range if they demonstrate continued good performance. In the case of the leadership team, sustained, high quality performance, confirmed by the most recent appraisal, should give the individual an expectation of progression up the pay range. In the case of the head teacher, a performance review is undertaken by the chair of trustees and the trustees, from this any changes to remuneration are actioned by the chair of trustees notifying the CFO.

The academy trust networks with the local group of schools in and around Haywards Heath and the West Sussex Local Authority, together with links to networks of primary and secondary schools:

• SALT (Schools All Learn Together), a well-established learning network, comprised of several primary schools in Haywards Heath who devise an annual strategic plan. Throughout the year, they typically meet regularly to develop pedagogy, curriculum policies, support continuing professional development from newly qualified teachers through to senior leadership, commission training, SENCO support and joint moderation for assessment.

• The school took part in training provided by Mental Health First Aid England in the year which subcontract to one of our Trustees in this region. This is detailed in the notes to the accounts. It was a market rate transaction.

• The school utilised a connected party for small decorating works in the year, this was conducted at market rate and is documented in the notes to the accounts.

• The school has participated in meetings hosted by West Sussex Local Authority - focusing on coordinating provision for COVID-19 recovery and catch-up, health and safety protocols, safeguarding and revised assessment arrangements and expectations. They have also been involved in county-wide moderation of work.

• The school joined Global Spirit Ed (formerly Bolton University's 'Lab Schools Network') in the Summer term 2021 which provides access to collaborate with a network of over 75 like-minded schools developing learning provision through a number of action-research informed initiatives.

• The school has utilised its membership of the CST (Confederation of School Trusts) to obtain timely insights into strategic issues that other trusts are addressing from across the country.

• The school also has a partnership agreement with Brighton University to support initial teacher training and development, coaching and mentoring several trainees each year.

The chairs of local trustee bodies have an established network to enhance information sharing on school developments.

The school business managers/bursars of local schools have a network to share best practice and work together to achieve best value for money.

The academy trust was created in February 2014, to advance the public benefit in the United Kingdom, in particular but without prejudice to the generality of the foregoing by establishing, maintaining, carrying on, managing and developing a school offering a broad and balanced curriculum.

Our objectives are achieved through the delivery of our mission statement to “strive for excellence, valuing everyone and our world.”

The School Vision Plan enshrines this through:

• An ethos of aspiration and high academic expectations

• Culture of respect for all, tolerance, inclusiveness and fairness

• Enrichment in the curriculum to provide for the needs of every child

The trustees 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.

In setting our objectives and planning our activities the trustees have carefully considered the Charity Commission's general guidance on public benefit.

The academy trust receives funding for the provision of education from the Education and Skills Funding Agency (ESFA). In January 2023, the date of the most recent OFSTED inspection, the school was graded Good by Ofsted. The following are extracts from the OFSTED report:

• There is a buzz of excitement about learning at Harlands Primary School. Pupils are happy, active and animated. They enjoy school and are excited by the many opportunities it offers them.

• Pupils are inspired by the high expectations of behaviour and achievement that are set and modelled by staff. They strive to meet these high standards in all that they do.

• Leaders ensure that pupils can access a range of opportunities.

• The needs of pupils with special educational needs and/or disabilities (SEND) have been carefully considered. Pupils with SEND benefit from a broad and balanced curriculum. Their needs are identified quickly so that barriers to learning can be addressed.

• Leaders enhance the curriculum through opportunities to nurture pupils’ talents and interests. Pupils speak enthusiastically about these opportunities including representing the school in sporting competitions and attending clubs. Pupils are proud of their achievements.

• Pupils’ learning is supported well by their good behaviour. Pupils particularly enjoy working in groups or pairs where they can share their many ideas. Leaders are keen to support pupils even further to understand and regulate their emotions. The school is a settled and orderly environment both in classes and as pupils enjoy social times in the extensive grounds.

• Leaders have developed robust systems and an ongoing programme of training that has created a strong culture of safeguarding. There is no complacency. Everyone is vigilant.

The school was satisfied with pupil progress and SATs outcomes – particularly achievement in Reading in Year 6.

Key achievements during the year 22-23:

• Appreciative Enquiry learning walk undertaken by Leadership team, Trustees, Global Spirit Ed (November 2022) – identified impactful practices ‘Theories of Action’ with a long-term plan for being an action research based school to sustain excellence in teaching & learning with an initial focus on ‘questioning’

• Moving towards an ‘Enquiry-based’ curriculum - with greater co-curricular work, opportunity for deeper pupil questioning, focusing on key subject knowledge needed

• A broad and balanced curriculum has been delivered with enrichment activities, increased pupil agency and co-curricular opportunities

• Extensive review of costs for 23-24: changing of our historic solution for the staffing of PPA (Planning Preparation Assessment) time using a qualified teacher – particularly in Key Stage 2. The school will utilise external providers to support drama/French teaching in KS2, class teachers will also be teaching their own class Music from September 2023 (with access to Music specialist support and resources)

• Preparation for accommodating a ‘bulge class’ in EYFS to start September 2023

• Timetabling and PPA allocations have been revised

Highlights include:

• Sustaining robust Safeguarding practices and controls tracking and monitoring incidents; proactive challenge to third party agencies supporting vulnerable pupils; expanded Safeguarding Leadership team; ongoing close monitoring of pupils at drop-off/pick-up; improved approaches for capturing pupil voice; and improving the monitoring of internet searches by pupils in school

• Strong ongoing support for pupils with special needs

• Ongoing curriculum development focused on progression of knowledge, skills and vocabulary.

• Bug Club phonics used in EYFS and Key Stage 1

• Mission I’mPossible took place throughout the whole school – increasing pupil agency and building independence.

• Achievement Statements are used in all classes for children on the SEND register

• Ready, Respectful, Safe have been introduced as the new school rules that underpin the new behaviour policy – all staff received training on how children’s behaviour is often an expression of emotions they are unable to articulate.

• Our outside area continues to be developed with our wildlife path to Harlands Hollow (outdoor learning/Forest School area)

• Sensory circuits have been uniquely designed and painted onto the KS1 playground

• There has been a library refurbishment, the library is now an engaging intervention space in the mornings and it is timetabled for class library sessions every afternoon

• ‘The Hub’ has also been updated, creating additional intervention space, storage, ICT work station for pupils and library overflow

• A new sensory room has been created and furnished in the cabin room

• New playground marking have been put on playgrounds

• Assemblies are planned termly to ensure the school values and school rules are consistently reinforced. Topical local, national and international issues and relevant case studies / role models are also covered

• Two staff have been trained as Mental Health First Aiders

• The deputy head has been qualified as a Mental Health Lead

• The school values have been brought to life through work with the whole school community

• A wellbeing team of children and staff have been trained to be wellbeing ambassadors

• Increased after extracurricular club provision both at lunchtimes and after school for Key Stage 1 and 2

• Your Space counselling supports the school inclusion team, supporting individual pupils

• A reading dog regularly visits the school, providing emotional support for vulnerable pupils

• Each year groups enhances its curriculum through a combination of visits, enrichment days and Mission I’mPossible work

• The PE lead has worked tirelessly to ensure as many sporting events as possible are attended by as many children as possible.

• Increased parent communication – including a yearly overview

The Academy monitors the following key performance indicators, which are referred to elsewhere in this report.

• Successful OFSTED outcome January 2023 maintaining “Good”

• Pupil attendance data good. For the academic year 2022-23 it was 96%.

• School roll fully subscribed

• Over-subscription for Reception 2023 taking a bulge class from 2023/24

• Financial key performance indicators are reviewed in monthly accounts such as wages as percentage of total revenue income. These are used to monitor performance to as a tool for strategic decision making.

After making appropriate enquiries, the board of trustees has a reasonable expectation that the academy trust has adequate resources to continue in operational existence for the foreseeable future. For this reason, it continues to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Statement of Accounting Policies.

During the year the academy trust continued to operate within a prudent budgetary framework. The principal source of income is government funding and this has been utilised in a manner which serves the best interests of the school and its pupils. The objective of the academy trust is to advance, for the public benefit, education in the United Kingdom in particular to establish, maintain, carry on, manage and develop a school offering a broad balanced curriculum.

The majority of the academy trust's recurrent income is obtained from the ESFA in the form of grants, the use of which is restricted to particular purposes. The grants received during the year ended 31 August 2023 and the associated expenditure are shown as restricted funds in the statement of financial activities. During the year ended 31 August 2023, total expenditure (excluding restricted fixed asset funds) of £2,060,027 (2022: £2,130,300) was covered by recurrent government funding from the ESFA together with other incoming resources. The excess of expenditure over income for the year (excluding restricted fixed asset funds) was £51,616 (2022: £1,312).

At 31 August 2023, the net book value of fixed assets was £4,284,521 (2022: £4,209,536) and movements in tangible fixed assets are shown in note 12. During the year, the assets were used exclusively for providing education, the associated support services to the pupils of the academy trust and community services.

During the course of the year the main expenditure item has been salary costs.

The academy trust does not use complex financial instruments. Activities are managed using cash as well as trade debtors and trade creditors arising from its operations. The main risks arising from the academy trust's financial instruments are liquidity risk and cash flow risk.

Liquidity risk – The academy trust manages its cash resources, including sufficient working capital, so that all its operating needs are met without the need for short-term borrowing.

Credit risk arises from the possibility that amounts owed to the academy trust will not be repaid. The academy trust is only exposed to risk as it arises from normal business activities. Credit risk is managed through the use of approved banks and the prompt collection of amounts due. Payments from parents are collected via the Arbor payment system and the funds are then transferred to the School Fund bank account. This system is provided by a reputable supplier and as such is considered a low credit risk.

The trustees reviewed the level of reserves of the academy trust throughout the year. This review covered both those from restricted and unrestricted reserves. During the reserves policy review, the nature of income and expenditure streams, the need to match income with commitments and the nature of the reserves were all considered. The Full Trustee Body has agreed that a reserve of at least two months' staff cost should be maintained where economically viable, this amounts to approximately £260,000.

Further items have been identified which could be financed by, or a contribution made from, the reserves for the benefit of the maintenance and future development of the school. Examples of this include significant structural maintenance projects identified around the school, which are required to improve the facilities available to pupils of Harlands, as well as a potential capital contribution to capital work needed for the future development of the school. One such project relates to a Condition Improvement Fund (CIF) bid lodged with the ESFA for the school roof to be replaced. This and other capital projects are expected to have a total cost at a level similar to unrestricted funds held at the year-end.

Total reserves at 31 August 2023 are £784,208 (2022: £695,592) excluding fixed assets funds and including LGPS.

Given the potentially significant contribution required for future capital works the trustees are of the opinion that this level of reserves is in line with the reserves per the policy.

During the year the trust made the decision to invest £300,000 in a 32 day deposit account with Lloyds. This did not affect the risk profile as the money remained in the same institution, suitable options were reviewed by Trustees and this was considered the best return to risk investment at the time. This is subject to regular review by trustees and may change subsequent to the CIF bid mentioned above, planned capital works and/or increases in interest rates in the future. Other cash balances are invested in such a way that the cash is readily accessible whilst a small return has been generated by way of interest earned. The trustees are satisfied with the interest earned on the cash balances in the year.

The trustee body and SLT has conducted a review of the risks to the academy trust relating to teaching, provision of facilities, pupil numbers, estate and finances. They have implemented a number of systems to assess risks, especially in operational areas such as teaching, health and safety, anti-bullying, clubs and school visits; and in financial controls in order to minimise risk.

The risks below are risks faced by the independent academy trusts and are not necessarily specific to Harlands Educational Trust.

External:

• Ongoing implications of recession.

• Unfunded increases in pay awards for teachers and support staff.

• Changes in Government policy with respect to academies.

• Impact of RAAC nationally on government funding especially in relation to capital projects.

• Impact of government error of £370m in relation to general funding for 2024/25 on future funding.

• Reductions in Government spending (such reductions would be likely to apply in a similar way to all schools).

• Ability to support increasing SEND needs without adequate or timely funding.

• Cyber attack risk, mitigated by use of professional service provider.

Legal:

• Operating outside the academy trust's charitable objectives.

• Health and Safety infringements.

• Breaches of employment law.

Governance:

• Trustees acting in their own interests and not in the interests of the academy trust.

• The trustees as a whole lacking the skill set required to run the academy trust successfully.

• Management information being insufficiently robust for effective decision making.

• Failure to respond to changes in external compliance requirements.

Financial risks:

• Bank balances and investments - there is no significant risk, other than a financial institution ceasing to trade.

• Bad debts - there are no material debtors.

• Credit rating - the academy trust's credit rating is not in jeopardy.

• Cashflow - the academy trust's cashflow is healthy and well-managed.

• Fundraising - the academy trust does not undertake formal fundraising on its own behalf. The Harlands PTA raise funds on behalf of the school but they are a separate legal entity.

• Health and safety implications of increased building refurbishments in the year. Controls in place to mitigate risks throughout each project.

• Financial viability of school due to fall in pupil numbers or uptake of bulge class in September 2023. This is controlled by regular monitoring.

• Risks relating to staff costs being high due to bulge class set up including additional operational costs, staff pay awards and increases to pension in coming year. Mitigated by review of staff efficiency through SRMA review and recommendations implemented.

A risk register has been developed and formalised by the trust. A formal review of the risk register is undertaken once a year by the Audit Committee, which is then presented to and approved by the full trustee body. The risk register is updated for material or new risks identified during the year by the SLT and the audit committee to reflect the nature of the document i.e. it is constantly evolving.

Fundraising

The academy trust does not undertake fundraising activities on its own behalf. A registered charity, Harlands PTA (800232) exists to raise funds for the benefit of Harlands children. Its objectives are to provide a contribution towards enrichment equipment and to run activities for the enjoyment of children and parents. As a separate legal entity, Harlands PTA is required to comply with the Charity Commission regulations on fundraising. The academy trust maintains appropriate oversight of Harlands PTA by holding regular meetings with the PTA Committee Co-chairs to discuss the activities planned and items to be funded, to ensure that they are in-keeping with the values of the academy trust.

There were no complaints received from any fundraising activities.

The school leadership team has developed an ambitious School Vision Plan for 2021-24, aimed at moving the school forward following a period of significant disruption. Key areas include:

• 'Powerful Knowledge for All' - developing the curriculum to ensure greater cohesion, purpose and progression; establishing Rosenshine's Principles of Instruction to consistently achieve 'sticky learning' for all pupils across all subjects, developing subject leader skills and expertise.

• 'Excellence in Inclusion' - raising achievement for all pupils and developing an environment where all pupils can succeed.

• 'Outdoor Enrichment' - expanding outdoor learning provision, developing pupils' confidence and helping them to connect with nature.

Priorities for 2023-24 include:

• Develop pupil coaching through Mission I’mPossible

• Develop staff coaching as part of staff meetings and training

• Embed new Behaviour Policy

• Embed high expectations of all in teaching and learning – focusing on our ‘Theories of Action’

• Wellbeing initiatives

• Continue to develop evaluation of curriculum areas across all subjects

• Training of phonics for staff in Key Stage 2

• Continue to develop leadership support networks through the Global Ed Spirit network

• Review and agree longer-term school building infrastructure development plan

During the year, the leadership team and trustees will shape and define the vision plan for the coming three years. This work is constantly evolving with new educational research and data, couple with the needs and ambitions of the children.

The academy trust does not hold funds on behalf of others.

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.

A resolution proposing that Carpenter Box 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 05 December 2023 and signed on its behalf by:

As trustees we acknowledge we have overall responsibility for ensuring that Harlands Educational 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.

As trustees, we have reviewed and taken account of the guidance in DfE's Governance Handbook and competency framework for governance.

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 Harlands Educational 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 full board of trustees have met less than six times within the academic year however the trustees are satisfied that they have met regularly enough to discharge their responsibilities and ensure robust governance and effective management as in between each full trustee board meeting the sub-committees will meet. Minutes from each of these meetings will be distributed to the full board trust board. Meetings would be called more regularly if the situation required and therefore the trustees feel they have maintained an effective oversight.

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 4 times during the year. Attendance during the year at meetings of the board of trustees was as follows:

Consequent upon her appointment as an associate trustee, Ms Datoo is not required to attend full board meetings and does not have voting rights; she now attends School Improvement meetings only.

Mr D Gwynne, as an associate trustee, is not required to attend full board meetings and does not have voting rights; he attends Audit Committee meetings and performs the internal scrutiny role.

Mr L Collingborn has been in attendance at 2 meetings of the full board in his capacity as “staff voice”.

The school has five independent members, Mr M Swiggs having stood down as a member from 22 November 2022. The members are: Mrs R de Mierre (appointed member 5 March 2023), Mr M Nichols, Mrs S Sansom, Mr G Stenner and Mr R Tata. Mr J Thorne resigned as a member on 5 June 2023, with his place being taken from that date by Mrs R de Mierre.

Post balance sheet events

The trust have continue to review the composition of the board of trustees. With this in mind three trustees were recruited in the period. Resignations in the period relate to rotation or natural movement.

• Mrs D Hollingum, Mr M Pawson and Mr C Robbins were all appointed as trustees by the members from 11 September 2023

• Mr J Holland resigned as a trustee on 17 September 2023

• Ms R Datoo was re-appointed as associate trustee (SIC) for a further one year term from 20 October 2023

• Mrs L Hales resigned as a trustee on 20 October 2023

• Mr Goodrun was appointed as trustee on 20 November 2023

Conflicts of interest

The trust board maintain a register of pecuniary interests. This is sent out at the start of each academic year. Trustees are also asked to update their pecuniary interest statements at the end of every trust board meeting. With regard to trust board meetings, trustees are asked at the start of each meeting if they have any pecuniary interests in any agenda item.  Should a trustee have a pecuniary interest in an item, appropriate steps are taken by the Chair to address this, for example, the trustee may leave the meeting at the point of the agenda item discussion.

Governance reviews

The trust board carry out a self-assessment on an annual basis. This self-assessment is based on the Confederation of School Trusts' template and is conducted at the first full trust board meeting of the academic year and is then reviewed at the end of the academic year. The findings from the review form the basis for discussion and in order to prepare areas for development for the new academic year.

The Resources Committee is a sub-committee of the main board of trustees. Its purpose is to assist the board of trustees in fulfilling its responsibilities for staffing, premises, resources, finance, business activity and off-site trips.

Attendance at meetings in the year was as follows:

The Audit Committee is a sub-committee of the main board of trustees. Its purpose is to assist the board of trustees in fulfilling its responsibilities of overseeing and managing the academy trust's financial reporting, accounting systems and internal controls.

The Audit Committee receives financial management accounts on a monthly basis. These are reviewed in advance by the Accounting Officer. Using this data, the Audit Committee monitors the financial performance of the school against budget, questioning variances on a monthly basis. There were three formal Audit Committee meetings in total.

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, as well as estates safety and management, achieved in return for the taxpayer resources received.

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

Teaching

Trustees and senior leaders have continually monitored and reviewed the quality of teaching and curriculum provision by:

• Ongoing evaluation of pupil progress during the academic year

• Evaluating the effectiveness of teaching through triangulation of data, monitoring, and pupil and parent/carer feedback

• Supporting teachers to develop the curriculum and enrichment opportunities

• Identifying pastoral and pupil wellbeing needs and providing support

• Reviewing curriculum priorities and undertaking learning walks

• Collaborating with schools within the Global Spirit Ed (formerly Bolton University's 'Lab Schools Network') on various action-research initiatives.

Learning

Trustees and senior leaders review the quality of children’s learning by monitoring pupil progress termly and pupil outcomes against OFSTED criteria. Strong challenge and high support is the basis of this approach:

• Aspirations are high with targets set against the high national benchmarks to deliver good progress and at least age related expected standards for all children. End of year expectations were agreed with the Secondary schools and were focused on by teachers - particularly to ensure that any ongoing post­ pandemic catch-up gaps were identified, prioritised and addressed

• Use of Government recommended planning approaches (utilising resources and tools provided by the Education Endowment Fund) to target intervention provision. These resources also supported developing a longer-term Vision Plan to develop our curriculum and learning provision

• Benchmarking and analysing pupil data with local and national comparisons were used to obtain best value for money.

• Gaps in achievement are challenged and focused intervention programmes implemented, scrutinised and amended according to need.

• Additional pastoral support sessions were organised to support pupils that were struggling to engage with learning or required additional support.

• Targeted use of very limited Pupil Premium funding to provide pupils with bespoke opportunities to encourage participation in clubs; additional adult help in class, and learning mentor support, resulting in improved learning, self-esteem and health outcomes.

Procurement and tendering

Trustees and senior leaders continue to develop procedures for assessing need, and obtaining goods and services which provide best value in terms of suitability, efficiency, time and cost. Measures in place include:

• Competitive tendering procedures

• Procedures which minimise admin time by the purchase of goods and services under £5,000 direct from known reliable suppliers e.g. stationery

The academy trust has worked successfully with other locality schools through the Haywards Heath area, benefitting particularly from provision to support the achievement of pupils that may require additional catch-up support.

Maximising income generation

The academy continually explores developing existing and new opportunities for income generation e.g. through letting of academy facilities and the wrap around childcare provision.

Staffing

The staffing structure is reviewed regularly against the School Vision Plan to ensure that staff are deployed efficiently to support individual pupils and the curriculum.

Financial review is also performed for other additional funding received. Staff are deployed to provide best value in terms of quality teaching, adult-pupil ratio, and curriculum management. An integrated curriculum and financial planning review of staff was undertaken in the year and recommendations implemented in September 2023.

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 Harlands Educational Trust for the period 1 September 2022 to 31 August 2023 and up to the date of approval of the annual report and financial statements.

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 2022 to 31 August 2023 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 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 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.

These are reviewed and monitored by either the Audit Committee or the Resources Committee as appropriate depending on their remit.

The board of trustees has decided not to appoint an auditor for this purpose. However, the trustees have appointed, Mr D Gwynne, a suitably qualified trustee, who is not employed by the trust, to undertake regular reviews of the academy trust’s financial controls and carry out a programme of internal checks. Mr D Gwynne reports to the board of trustees on the operation of the system of control and on the discharge of the financial responsibilities of the board of trustees. This arrangement is closely reviewed and monitored by the trustees. No control issues were identified during the course of this work.

The internal reviewer's role includes giving advice on financial and other matters and performing a range of checks on the academy trust's financial and other systems. In particular, the checks carried out in the period include:

• A review of the month end procedures and control accounts;

• Review of purchasing and procurement to ensure that they are in line with policies in place; and

• Review of the monthly payroll processing and procedures.

On an annual basis the internal reviewer reports to the board of trustees, through the Audit Committee on the operation of the systems of control and on the discharge of the board of trustees' financial responsibilities. On an annual basis the internal reviewer prepares a summary report to the committee outlining the areas reviewed, key findings, recommendations and conclusions to help the committee consider actions and assess year on year progress.

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 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 work of the Audit Committee;

• the work of the external auditor;

• the work of the Finance Manager within the academy trust who has responsibility for the development and maintenance of the internal control framework; and

• correspondence from ESFA.

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 05 December 2023 and signed on its behalf by:

As accounting officer of Harlands Educational 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, including for estates safety and management, under the funding agreement 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 Trust Handbook 2022, including responsibilities for estates safety and management.

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 Trust Handbook 2022.

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 Harlands Educational Trust for the purposes of company law) are responsible for preparing the trustees' report and the accounts in accordance with the Academies Accounts Direction 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 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 in the Charities SORP 2019 and the Academies Accounts Direction 2022 to 2023;

• 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 financial statements; and

• 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 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 05 December 2023 and signed on its behalf by:

Opinion

We have audited the accounts of Harlands Educational Trust for the year ended 31 August 2023 which comprise the statement of financial activities including the income and expenditure account, 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 2022 to 2023 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 2023 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 2022 to 2023.

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.

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the academy trust’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the accounts and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the accounts themselves. 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

• Obtaining an understanding of the legal and regulatory framework that the charitable company operates in, focusing on those laws and regulations that had a direct effect on the financial statements and operations;

• Obtaining an understanding of the charitable company's policies and procedures on fraud risks, including knowledge of any actual, suspected or alleged fraud; and

• Discussing among the engagement team how and where fraud might occur in the financial statements and any potential indicators of fraud through our knowledge and understanding of the charitable company and our sector-specific experience.

As a result of these procedures, we considered the opportunities and incentives that may exist within the charitable company for fraud. We are also required to perform specific procedures to respond to the risk of management override. As a result of performing the above, we identified the following areas as those most likely to have an impact on the financial statements: employment law and compliance with the UK Companies Act Academies Accounts Direction 2022 to 2023 and the 2022 Academies Trust Handbook.

In addition to the above, our procedures to respond to risks identified included the following:

• Making enquiries of management and those charged with governance about any known or suspected instances of non-compliance with laws and regulation, fraud or any actual or potential litigation and claims against the charitable company;

• Reviewing minutes of meetings of the board of trustees, senior management and the audit committee;

• Reviewing internal scrutiny reports for the academic year;

• Reviewing financial statement disclosures to assess compliance with applicable laws and regulations;

• Review and assess compliance with the Academies Trust Handbook 2022 and issue a separate report on compliance with regularity requirements;

• Challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to the local government pension scheme; and

• Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.

Due to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://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 16 November 2021 and further to the requirements of the Educational and Skills Funding Agency (ESFA) as included in the Academies Accounts Direction 2022 to 2023, we have carried out an engagement to obtain limited assurance about whether the expenditure disbursed and income received by Harlands Educational Trust during the period 1 September 2022 to 31 August 2023 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 Harlands Educational Trust and the ESFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to the Harlands Educational Trust and the 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 the Harlands Educational Trust and the ESFA, for our work, for this report, or for the conclusion we have formed.

The accounting officer is responsible, under the requirements of Harlands Educational Trust’s funding agreement with the Secretary of State for Education dated 19 March 2014 and the Academies Trust Handbook, extant from 1 September 2022, 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 2022 to 2023. 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 2022 to 31 August 2023 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 Framework and Guide for External Auditors and Reporting Accountant of Academy Trusts 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:

• Consideration of the evidence supporting the accounting officer’s statements on regularity, propriety, and compliance;

• Review of procedures and controls ensuring their adequacy, compliance and appropriateness;

• Analytical procedures on the general activities of the academy trust;

• Planning of assurance procedures including identifying key risk areas;

• Further testing and review of the areas identified through the risk assessment including the testing and identification of control processes and examination of supporting evidence as well as additional verification and substantive testing on individual transactions.

• A review of minutes of committees and board meetings which may be relevant to regularity; and

• Consideration of discussions with key personnel including the accounting officer and governing body.

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 2022 to 31 August 2023 has not been applied to purposes intended by Parliament and the financial transactions do not conform to the authorities which govern them.

The accounts were approved by the board of trustees and authorised for issue on 05 December 2023 and are signed on its 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 financial statements 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 2022 to 2023 issued by ESFA, the Charities Act 2011 and the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the entity. Monetary amounts in these financial statements are rounded to the nearest £1.

The charity is a company limited by guarantee and has no share capital.

The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the 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 financial statements. The trustees have reviewed the trust's three year budget forecast return which demonstrates the trusts ongoing viability over that period, taking into account rising cost pressures and inflationary impacts. Within this context the trustees have concluded that the trust has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the trust’s ability to continue as a going concern. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

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

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.

Capital grants are received for capital purposes and must be spent in line with the terms and conditions of the grant.

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.

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.

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 £250 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:

Assets in the course of construction are included at cost. Depreciation on these assets is not charged until they are brought into use and reclassified to freehold or leasehold land and buildings.

A full year of depreciation is charged in the year of acquisition.

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 under operating leases are charged on a straight-line basis over the lease term.

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 as detailed in note 13. 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 as detailed in note 14. 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 part 11, chapter 3 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.

The TPS is an unfunded scheme and contributions are calculated so as 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 on the basis of quadrennial valuations using a projected unit 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 operating surplus 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.

If the present value of the defined benefit obligation at the reporting date is less than the fair value of plan assets at that date, the plan has a surplus. A plan surplus, as a defined benefit plan asset, is only recognised to the extent that it can be recovered either through reduced contributions in the future or through refunds from the plan.

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 Education and Skills Funding Agency/Department for Education.

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.

Local government pension scheme

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 18, 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 2023. 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 asset or liability.

All income from capital grants in the current and prior year was in relation to restricted fixed asset funds.

The income from funding for educational operations was £2,025,512 (2022: £1,957,379) of which £600 was unrestricted (2022: £2,698) and £2,024,912 was restricted (2022: £1,954,681).

The income from other trading activities was £83,734 (2022: £196,211) of which £29,785 was unrestricted (2022: £21,904) and £53,949 was restricted (2022: £174,307).

All income from investments in the current and prior year was unrestricted.

The expenditure on educational operations was £2,161,871 (2022: £2,203,621) of which £1,634,042 (2022: £1,608,157) related to staff costs, £243,417 (2022: £109,815) related to premises and equipment, and £293,412 (2022: £485,649) related to other costs.

The expenditure on educational operations was £2,161,871 (2022: £2,203,621) of which £3,610 was unrestricted (2022: £nil) and £2,158,261 was restricted (2022: £2,203,621).

The above employees participated in the Teachers' Pension Scheme.

The key management personnel of the academy trust comprise the trustees and senior management team as listed on page 1.

The total amount of employee benefits (including pension contributions and employer national insurance contributions) received by key management personnel for their services to the academy trust was £467,912 (2022: £437,831).

The principal and other staff trustees only receive remuneration in respect of services they provide undertaking the roles of headteacher and staff, and not in respect of their services as trustees. Other trustees did not receive any payments, other than expenses, from the academy trust in respect of their role as trustees. During the year, £298 were reimbursed in relation to expense claims consisting of teaching resources, office suppliers and subsistence costs to 1 trustee during the year (2022: £50 reimbursements).

The value of trustees' remuneration was as follows:

Mr D McKeown-Webster (Headteacher)        

Remuneration:            £70,001 - £75,000 (2022: £65,001 - £70,000)

Employer's pension contribution:    £15,001 - £20,000 (2022: £15,001 - £20,000)

Remuneration reflects the payment received for the period that the trustees were in post only.

Other related party transactions involving the trustees are set out within note 22.

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 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.

At the balance sheet date the academy trust was holding funds received in advance of £48,091 for Universal Infant Free School Meals Funding, £18,509 for Supplementary grant, £8,697 for Devolved Formula Capital grant and £8,722 of SEN funding which relate to the 2023/24 academic year.

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

• GAG funds are restricted to providing education

• UIFSM funding provides funding to offer free school meals to pupils in reception, year 1 and year 2.

• Pupil premium funding is provided to improve education outcomes for disadvantaged pupils.

• Catch-up premium is provided to help pupils and disadvantaged young people catch up on missed education due to COVID-19.

• Other DfE / ESFA grants relate to reimbursement for specific services

• Other government grants are in relation to the local authority SEN funding received

• Other restricted funds are held to provide trips and other activities for students and the provision of education

• Capital grants are received for capital purchases and must be spent in line with the terms and conditions of the grant.

The academy trust is not subject GAG carried forward limits.

During the year, the academy transferred £59,000 (2022: £33,000) from GAG funding to Capital expenditure to cover the deficit within the year.

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 West Sussex 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 of the LGPS 31 March 2022.

Contributions amounting to £29,890 (2022: £27,792) were payable to the schemes at 31 August 2023 and are included within other creditors.

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 - there contributions are credited to the Exchequer. Retirement and other pension benefits are paid by the 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 31 March 2016 TPS actuarial valuation results were implemented from 1 September 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 latest actuarial TPS valuation results, as at 31 March 2020, were released in October 2023. The revised employer contribution rate, arising from this valuation, is due to be implemented from 1 April 2024.

The pension costs paid to the TPS in the period amounted to £189,911 (2022: £180,115).

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 made for the year ended 31 August 2023 was £98,865 (2022: £83,074), of which employer's contributions totalled £78,424 (2022: £66,152) and employees' contributions totalled £20,441 (2022: £16,922).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 and on 21 July 2022, the Department for Education reaffirmed its commitment to the guarantee, with a parliamentary minute published on GOV.UK.

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

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 trust has an interest. All transactions involving such organisations are conducted in accordance with the requirements of the AFH, including notifying the ESFA of all transactions made on or after 1 April 2019 and obtaining their approval where required, and the the academy trust's financial regulations and normal procurement procedures relating to connected and related party transactions. The following related party transactions took place in the period of the account:

The Workable, a company in which Mr R Datoo, a trustee, is an employee of, provided first aid courses to the trust totalling £660 during the period. There were no amounts outstanding at 31 August 2023 (2022: £nil).

Neon Fox, a company run by a spouse of Mrs J Newberry, employed by the academy trust, provided maintenance services to the trust totalling £2,583 (2022: £nil) during the period. There were no amounts outstanding at 31 August 2023 (2022: £nil).

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.

The accounts for the year ended 31 August 2022 reported a nil liability / surplus position for the trust’s share in the West Sussex Pension Fund. This was based on the accounting policy to not recognise a plan surplus, as detailed in note 1.10, with the actuarial report showing a surplus position. Subsequent to the approval of the accounts a revised actuarial valuation was received reporting a pension scheme liability of £68,000. The prior year figures have therefore been adjusted to recognise this liability, with no impact on the net income.