THEDWASTRE_EDUCATION_TRUS - Accounts

The Trustees (who are also Directors for the purposes of the Companies Act) present their Annual Report together with the audited financial statements and auditors’ report of Thedwastre Education Trust (the Trust) for the period ended 31 August 2023. The Trustees confirm that the Annual Report and Financial Statements of the Trust comply with the current statutory requirements, the requirements of the Trust’s governing documents and the Academies Accounts Direction 2022 to 2023. The Annual Report serves the purposes of both a Trustees’ report and a Directors’ report including a strategic report under company law.

Thedwastre Education Trust operates four Primary Academies in Suffolk and has a pupil capacity of 980 (up from 720 the previous year) and had roll of 685 in the school census of October 2022 (up from 659 the previous year). At the end of the financial year there were 727 pupils on roll, due to the rapid growth at Thurston Primary Academy.

Thedwastre Education Trust includes the following Academies:

• Great Barton C of E Primary Academy

• Thurston C of E Primary Academy

• Rattlesden C of E Primary Academy

• Woolpit Primary Academy

The Trust was incorporated on 1 December 2015, it is a company limited by guarantee and an exempt charity. All four schools transferred to an Academy Trust Structure on 1 January 2016.

The Trust’s Memorandum and Articles of Association are the primary governing documents. The Trustees of Thedwastre Education Trust are also the directors of the charitable company for the purposes of company law.

The principal objects of the Trust are to advance for the public benefit education in the United Kingdom, in particular but without prejudice to the generality of the foregoing by establishing, maintaining, carrying on, managing and developing Academies which shall offer a broad and balanced curriculum.

The operation of The Trust’s Academies and employment of staff are the responsibility of the Trustees. The Trust retains control of Academy budgets and finances, and monitors these through its Finance, Audit and Risk Committee. Each Academy has appointed Local Governing Bodies (LGBs) who have delegated authority to administer their Academy within agreed budgets.

Within this Report the term Trustee refers to a member of the Board of Directors and the term Governor to a member of a Local Governing Body. Details of the Trustees who served during the year are included in the Reference and Administrative Details section.

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 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 whilst on academy business, and provides cover up to £10,000,000. It is not possible to quantify the trustee’s and officer’s element from the overall cost of the RPA scheme.

The management of the Trust is the responsibility of the Trustees who are co-opted under the terms of the Articles of Association. The St Edmundsbury and Ipswich Academies Umbrella Trust is entitled to appoint two Trustees and each Academy Local Governing Body is entitled to nominate one Trustee (up to a maximum of four) who is appointed by the Members.

Directors’ skills and areas of expertise are reviewed regularly; before new directors are appointed to the Board, their skills and areas of expertise are carefully considered to ensure that the Board has the required skill set overall to fulfil its duties.

Trustees are appointed for a fixed term of four years (renewable). The Chief Executive Officer (CEO) is an ex officio member of the Board of Directors and is a Director for as long as they remain in post. Other Trustees are appointed by the Members of the Trust and up to two Directors may be appointed by the Directors with the consent of the St Edmundsbury and Ipswich Academies Umbrella Trust. The Articles of Association make provision for 10 Trustees plus the CEO.

The training and induction of new Trustees will depend on their existing experience. Newly appointed Trustees are contacted in writing by the chair to welcome them and to affirm expectations. All new Trustees will be offered a tour of the academies to meet staff and pupils. All Trustees are introduced to the policies, procedures, minutes, accounts, budgets, plans and other documents that they will need to undertake their role. As there is expected to be low turnover of Trustees, induction will be carried out informally and will be tailored specifically to the individual.

The governance of the Trust is defined in the Memorandum and Articles of Association together with the Funding Agreement with the Department for Education.

The Trust was set up with a management structure to support the delivery of high-quality education. The structure consists of two levels: The Board of Directors is responsible for the strategic direction of the Trust and the Leadership Group that is responsible for the day-to-day running of the academies. In addition, each academy has a Local Governing Body (LGB) that acts as a committee of the Board of Directors and has delegated authority determined according to the Scheme of Delegation.

The Directors (who are Trustees) are responsible for setting strategic policy, adopting an annual plan and budget, monitoring the use of budgets, and making major decisions about the direction of the Trust, capital expenditure, trust-wide contracts and senior staff appointments.

The Governors of each Local Governing Body are responsible for implementing Trust policy, ensuring the appropriateness of annual budgets and capital expenditure projects for their Academy and monitoring performance against that budget within authorised limits.

The Leadership Group consists of the Headteacher of each Academy and the Chief Executive. This Group are responsible for leading the Trust on a day-to-day basis, organising the teaching staff, facilities, and pupils. The Leadership Group control the operation of the Trust at an executive level under the direction of the Chief Executive, implementing the policies laid down by the Directors and reporting back to them. The Leadership Group ensures that the work of individual academies and LGBs aligns with the strategic aims of the Trust as a whole.

The Headteacher of each Academy, with the support of senior staff, is responsible for implementing policies and reporting to the LGB, and for the day-to-day operation of the Academy, in particular organising staff, resources, and pupils. They are responsible for the authorisation of spending within agreed budgets and for the appointment of staff following vetting and safer recruitment processes.

The Chief Executive Officer acts as the Chair of the Leadership Group and the Accounting Officer and has ultimate accountability for the performance of the academies.

Key management personnel include Trustees and those staff to whom the Trustees have delegated significant authority and responsibility in the day-to-day running of the Trust.

Except for the Chief Executive Officer, Trustees receive no remuneration from the Trust.

The Trust applies the guidance of the School Teachers Pay and Conditions Document to all leadership roles. The remuneration for Headteachers is recommended by the Headteacher’s Performance Management Committee of the Local Governing Body of the Academy for which they are responsible based on their achievement of the objectives set for them during the year. Each Headteacher’s Performance Management Committee is advised by an external adviser appointed by the Trust in conjunction with the Chief Executive Officer. The salary point (Headteacher Pay and Conditions) for the responsibilities of the Chief Executive Officer is determined by the Trust Board based on the overall number of pupils in the Trust.

Pay and remuneration of key management personnel is decided by a variety of contributory factors, such as the Academy group size, ISR, the pay scales for each role and the level of experience of each staff member. In addition, pay levels may be affected by nationally agreed pay awards, the ability to recruit and retain in post, all of which are in accordance with the Trust’s appointment and pay policies.

All amendments to key management’s pay and remuneration are advised by the HR Committee and approved by the Board of Directors.

Owing to the nature of the Trust's operations and the composition of the Board of Directors being drawn from local public and private sector organisations, it is inevitable that from time-to-time transactions will take place with organisations in which members of the Board of Directors may have an interest. All transactions involving such organisations are conducted at arm's length and in accordance with the Trust’s financial regulations and normal procedures. Any transaction where the Trustee may have a pecuniary interest is only undertaken in accordance with the ‘at cost’ principle described in the Academies Handbook.

The Trust cooperated with the following organisations during the academic year in pursuit of its charitable activities:

• Thurston Partnership School Company. Individual academies are Members of the Thurston Partnership School Company (company number 08318298), a dormant company.

• The St Edmundsbury and Ipswich Academies Umbrella Trust/ Diocese. Three of our schools are associated with the Diocese who provide support for church schools in fulfilling their Christian ethos, religious education and spiritual and moral teaching and learning. The Umbrella Trust also acts as a Member of the Trust.

The Trust does not have a formal sponsor.

The principal object and aim of Thedwastre Education Trust is the operation of a number of Academies to provide free education and care for pupils of different abilities within its local community between the ages of 4 and 11.

The Trust aims to provide the best possible education for all the children in its care by providing a structure of school-to-school support and challenge. We wish to develop our children as rounded individuals who leave the schools well prepared for the next stage of their education – a broad and balanced education is an essential part of this aim.

We have continued our work to establish Thedwastre Education Trust on a firm basis, developing sustainable structures and processes that allow the Trust to harness the talents of all the staff within the academies to work towards achieving our aims.

During 2018-19 the Board and the Leadership Group met several times to further refine the Trust’s strategy. The renewed strategy is set out below:

Vision

We are a community of schools striving for excellence for our pupils, staff and communities, providing a broad and balanced education which enables all to reach their full potential.

Our Values

We value every child, parent, volunteer and employee; we aim to ensure all are respected and children show respect to one another, learning to work collaboratively with their peers for mutual benefit. We have high aspirations for all pupils, staff and the communities we serve.

Our core values are:

Excellence

Inclusive

Community

Collaborative

Our Priorities

Over the next 3 years we will focus on the following objectives:

1. Excellence in Education

• We aim to ensure all our schools are judged as good or outstanding over the next three years with outcomes and progress consistently above national average

• Our schools will have a strong sense of identity whilst working collaboratively as part of the Trust and beyond

• We will prepare children for life through a creative, broad and balanced curriculum, utilising sharing best practice to benefit all

2. Growth

• We aim to welcome at least three new schools to join the Trust as Academy converters

• We will become a DfE Sponsor and develop capacity to take on schools in significant need

• Our central service functions will enable us to grow through greater economies of scale, efficient and cost effective systems

3. Enablers:

Effective Governance, including risk management

• We will regularly review governance at all levels to ensure it is robust, appropriate and fit for purpose, modelling recognised best practice

Finance and Administration

• We will work to achieve an annual surplus across the Trust to enable us to reinvest in our schools and take informed risks

• We will develop an effective central services team to support our schools so that they can focus on providing an exceptional education for our pupils

Estates and Facilities

• Our facilities, including technology, will support our ambitious curriculum plans and support school improvement

• Our schools willingly share resources where this adds value to the curriculum

• Our school premises will be well maintained with support from the central services team

4. Effective and timely communications

• We will ensure our communications are effective with regular updates to all our stakeholders at both a School and Trust level

5. People

• Our staff will recommend working for TET as evidenced by our Net Promoter Score collected annually through our staff survey

• We will develop an annual Trust wide CPD programme that supports all our staff to achieve their potential, complimenting in-school CPD

• Our leaders will support colleagues across the Trust and willingly share best practice for the benefit of all

Our strategy will be reviewed and updated annually and supported by an annual plan to ensure we keep on track. During the 2022-23 year, the Board approved an annual plan with specific objectives for the year. Good progress was made during the year against this plan and the strategic report below summarises some of the key highlights.

The Trustees believe that by working towards the objects and aims of the Trust as detailed above, they have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission.

The Board would like to thank all staff, but especially the senior leaders who worked so hard during extremely challenging times, always with children’s interests at the centre.

Excellence in Education

During 2022-23 schools within Thedwastre Education Trust continued to strive for excellence in the educational offer provided to all pupils. Statutory assessments were completed during the year and our schools all saw improving results compared to 2022. The Key Stage 2 results were as follows:

Great Barton

The school continues to have consistently high outcomes at Key Stage 2 in all subjects, although slightly lower in writing.

Rattlesden

The school had a very small cohort at KS2, with only 10 children. One child makes a significant difference overall. The significant improvements in phonics and early reading over recent years will impact on key stage 2 outcomes in the longer term and ensure they remain well above national.

Thurston

The results are positive, given the very large number of pupils who have joined the school since reception due to the rapid expansion of the school. There has been a high degree of mobility throughout the school, which has a significant effect on the outcomes overall.

Woolpit

The KS2 SATs results are really positive for the school given the complications associated wth this cohort, including one child who is dual placed and did not sit the SATs tests a very high proportion of pupils who are SEND and 2 pupils who are persistently absent from school. The proportion of children achieving greater depth in reading is really high and shows that the investment in reading over recent years has paid off. The outcomes in Key stage 1 are now more comparable with other schools so the key stage 2 outcomes should continue to improve in future as this high-quality teaching is further embedded.

Significant improvements continue to be made in the teaching of phonics and early reading across the Trust. Our schools either started or completed their work with one of the local English teaching hubs. Schools also worked with the Maths hub to further develop the teaching of maths across the school.

The Trust commissioned one of the headteachers to lead a teaching and learning project across all schools. This work has led to a teaching and learning lead being trained in all Trust schools. This work will be built upon in the coming year and further consolidated with additional trust wide training and development activities.

The Board appointed an external School Improvement Partner to act as its school improvement adviser for the year. Half termly visits were undertaken by an experienced school leader to support our schools in further developing their school improvement activities. Directors were assigned to work more closely with each school, including regularly attending local governing body meetings where possible.

The Trust continued to strengthen opportunities for collaborative working between our schools, extending the subject leadership arrangements and facilitating cross school working. Of particular note has been the work led by the Headteacher at Rattlesden Primary Academy to further consolidate the Primary Science hub across our four schools and four other local schools. This is a long-term programme to enhance the teaching of science in particular, with opportunities for staff development and access to additional resources for the teaching of science.

Towards the end of the school year, our Trust was asked to support another local school who were in significant difficulty. Staff from Woolpit, led by the Headteacher provided a very intense period of support at the school, providing expert advice as well as setting up strong safeguarding systems.

Growth

Discussions took place with three schools about the potential to join the Trust. Whilst this did not come to fruition, it was a beneficial exercise all round. The Board will continue to seek growth of the trust over the next few years with like-minded schools.

Effective Governance

The Board continued to extend invitations to attend Board meetings to Chairs of each Local Governing Body. This significantly improves communication between the Board and LGBs. The Board also continued to use video conferencing to ensure that meetings could continue to maximise attendance. The Board’s sub-committees continued to work well and attendance from LGBs continues to be good overall.

An internal audit was commissioned during the year. This focused on Payroll scrutiny to ensure that the systems are robust. A second internal audit took place to focus on financial operations. This was completed internally for the first time and helped prepare schools for external audit later in the year.

During the year, the Board welcomed the return of one of its former Directors who has extensive experience in financial management of schools and Academy Trusts. This strengthened the Board’s significantly in this regard. Unfortunately, other Board members with valuable experience resigned during the year due to their other commitments.

Finance and Administration/ operations

The Board has maintained a close oversight of the financial position of each academy and the Trust as a whole and has further developed its long-term forecasting taking into account expected pupil numbers. This allows the Board to plan better for the future and predict schools where there are likely to be financial challenges ahead.

Estates and Facilities

During 2022-23 further Condition Improvement bids were submitted. This resulted in the successful award of funding to replace the windows and doors at Rattlesden. The replacement of fencing at Woolpit was also completed during the year. The Trust has been awarded almost £1,000,000 in CIF funding over the last five years, all of which has significantly improved the learning environment for our pupils.

The Board has developed a capital investment plan to identify and plan capital investment over the coming years. This is reviewed termly, and projects prioritised to address health and safety and support high quality teaching and learning.

Effective and timely communications

The Trust continued to aim to improve communications and updated the Trust website to ensure information is more easily available. The Chair of the Board has ensured that all key stakeholders are kept informed throughout the year and Board members have been allocated schools to work more closely with, including regular visits and attendance at LGB meetings.

People

The Trust undertook a number shared CPD sessions for all schools and Governors within the Trust. The Trust organized writing moderation to support teacher assessment. The development of the Science hub also continued during the year. Staff wellbeing is high on our list of priorities, and we have ensured all staff have access to confidential support helplines should they need it.

Overall, 2022-23 was a good year for the Trust and significant progress was made against our priorities. The Board would like to express its gratitude to all staff, governors and volunteers who helped make our schools stronger. The collaboration across the schools within the Trust during challenging times proved that we are definitely stronger together.

Ofsted outcomes

Great Barton – 1 – January 2009

Thurston – 2 – November 2018

Rattlesden – 2 – October 2018

Woolpit – 2 – July 2022

Financial Key Performance Indicators

The financial KPIs for the period were as follows;

Staff costs as a % of income            76%        (2022 - 79%)

GAG income as % of total income             69%        (2022 - 70%)

Closing cash balances as % of total income        13%        (2022 - 20%)

Current assets vs current liabilities            2.99 : 1        (2022 - 2.28 : 1)

After making appropriate enquiries, the Trustees have a reasonable expectation that the 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.

The principal source of funding for the Trust is the General Annual Grant (GAG) and other grants that it receives from the Education Funding and Skills Agency (EFSA). For the year ended 31 August 2023 the Trust received £4,494,538 of GAG and other funding. Due to the rapid increase in the number of pupils at Thurston, additional income to support this growth is provided by Suffolk County Council. A high percentage of our income is spent on staff salaries and support costs to deliver the Trust’s primary objective of the provision of education. During the year, the Trust spent £4,650,041 and transferred £18,817 to support capital projects on the various academy sites. The Trust brought forward from 2021/22 £2,521,475 restricted funds and £408,109 unrestricted funding. The carry forward for 2022/23 is £2,661,428 restricted funding and £391,653 unrestricted funding.

At the end of 2022/23, all academies within the Trust had positive balances. Overall budgets for 2023-24 were very challenging to balance due to the increase in salary costs. We are aware that we must seek further reductions in costs to avoid in-year deficits for future years, especially given the rising costs of staffing, energy costs and other commodities. The Board reviews financial management information at each meeting and consider the financial outlook over a 3-year period.

The Trust held fund balances as at 31 August 2023 of £3,053,081 comprising of restricted funds of £90,438, restricted fixed asset funds of £2,570,990 and unrestricted reserves of £391,653.

The Trustees are aware of the requirement to balance current and future needs and always aim to set a balanced budget with annual income balancing annual expenditure. The Trustees monitor estimated year-end carry forward figures via the receipt of management accounts. The budget plan identifies how any carry forward will be allocated in the plan for the following academic year, including the identification of any funds earmarked for a specific project or purpose. The Trust maintains a medium-term financial forecast which shows how end of year reported reserves will be utilised for each academy. The Trust reviews the forecasts and actual results closely to ensure that the Trust continues for the foreseeable future and can react to unforeseen budget changes.

The cash balance of the Trust has been very healthy all year, ending the year with a balance of £592,850.

During this period, the Trust has held all its funds in an interest-bearing accounts and made no investments.

The Trust maintains a Risk Register identifying the major risks, to which each academy is exposed, and identifying actions and procedures to mitigate those risks. This register is approved and monitored by the Board with a formal review undertaken three times a year as a minimum. The internal control systems and the exposure to identified risks are monitored on behalf of the Trustees at each Finance, Audit and Risk Committee meeting. The principal risks facing the Trust are outlined below; those facing the Academies at an operational level are addressed by its systems and by internal financial and other controls.

The Trustees report that the Trust’s financial and internal controls conform to guidelines issued by the EFSA, and that improvements to the wider framework of systems dealing with business risk and risk management strategy continue to be made and formally documented.

It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

As a group of academy schools, the level of financial risk is relatively low. Cash flows can be reliably forecast, monitored, and reported. Staff costs make up the majority of expenditure and are relatively stable with contingencies in place to cover such items as sickness and maternity absence.

The Trustees assess the other principal risks and uncertainties facing the Trust as follows:

• Each Academy within the Trust has considerable reliance on continued Government funding through the EFSA and there is no assurance that Government policy or practice will remain the same or that public funding will continue at the same levels or on the same terms. The amount of funding received is largely reliant on the number of pupils and as such the reputation of each school for the provision of a high-quality education is key to our success. In general, our schools have opportunity to grow pupil numbers due to the number of housing developments in the local area;

• Failures in governance and/or management - the risk in this area arises from potential failure to effectively manage the Trust’s finances, internal controls, compliance with regulations and legislation, statutory returns, etc. The Trustees continue to review and ensure that appropriate measures are in place to mitigate these risks;

• Reputational - the continuing success of the individual Academies is dependent on continuing to attract pupils in sufficient numbers by maintaining the highest educational standards. To mitigate this risk Trustees ensure that pupil progress and outcomes are closely monitored and reviewed by LGBs and the Standards Committee in particular and necessary actions taken to address areas of weakness identified;

• Safeguarding and child protection - the Trustees continue to ensure that the highest standards are maintained in the areas of selection and monitoring of staff, the operation of child protection policies and procedures, health & safety and discipline;

• Staffing - the success of the Academies is reliant on the quality of its staff and the Trustees monitor and review policies and procedures and recruitment to ensure continued development and training of staff as well as ensuring there is clear succession planning;

• Fraud and mismanagement of funds - The Trust appointed an external company to carry out independent and external checks on financial systems and records as required by the Academies Handbook. All finance staff receive training to keep up to date with financial practice requirements and develop their skills in this area;

• Financial instruments – the Trust only deals with bank balances, cash, and trade creditors, with limited trade (and other) debtors. The risk in this area is considered to be low;

• Defined benefit pension liability – as the Government has agreed to meet the defined benefit pension liability of any Academy ceasing to exist the main risk to the Trust is an annual cash flow funding of part of the deficit. Trustees take these payments into account when setting the annual budget plan;

• Estates and facilities - the Trust has mechanisms in place to ensure that the premises remain safe and well maintained. The Trust has appointed an external property management adviser to oversee the long term and reactive maintenance of the premises, mechanical and electrical installations and asbestos. Regular (termly) reviews are undertaken at each school and reported to the Finance, Audit & Risk Committee with escalation to the Board as necessary;

• Health and safety – the Board understands the risks associated with operating academies and takes steps to minimise these risks by monitoring incidents, accidents and near misses, taking action as necessary; and

• Cyber security – there is a growing risk from cyber criminals to hold organisations to ransom and hack/ withhold important data. The Trust is aware of this threat and is taking steps to ensure systems are more secure to protect against such attacks.

The Trust and each academy have continued to strengthen the risk management process throughout the year by improving the process and ensuring staff awareness.

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

As the academy trust has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

The Board plans to grow the Trust during the next few years to ensure that our schools receive the benefits of being part of a larger organisation. We will explore opportunities to attract like minded schools from within a 30 mile radius that share our values and ethos. We will consider opportunities to grow the Trust through academy conversions, bringing on board Single Academy Trusts and the development of new schools based on local need.

The Board has undertaken a review of the Strategy for the coming three-year period. The focus for the next few years will be to develop a comprehensive school improvement offer and consolidate the central services offer, so that this is able to accommodate growth of the Trust.

The Board’s plans for the next year include the following:

• Ensure School Improvement is the focus of all senior leaders within the Trust

• Continue to support all schools to ensure they are confident in being able to be rated at least Good at their next Ofsted Inspection

• Extend opportunities to collaborate across all schools in the Trust to ensure good practice is shared

• Strengthen the Board by adding additional Directors with relevant expertise

• Identify further cost savings and efficiency improvements to allow maximum resources to be targeted at continual school improvement

• Continue to be outward looking in our work, developing links with outside organisations to support teaching and learning

• Support all staff effectively to encourage high staff retention and where possible extend opportunities for professional development within the MAT

• Maintain and develop effective systems of support for pupils with SEND, mental health and behavioural support needs so that every child thrives and achieves their full potential

• Continue to invest in school’s premises and infrastructure to further support teaching and learning

• Ensure that we continue to provide mechanisms for effective sharing of good practice at every level throughout 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.

In accordance with the company’s articles, a resolution proposing the appointment of independent auditors of the company will be put to the Board of Directors for approval by the Members. To ensure the Trust achieves best value, the provision of audit services will be market tested in 2023-24.

The trustees' report, incorporating a strategic report, was approved by order of the board of trustees, as the company directors, on 30 November 2023 and signed on its behalf by:

As Trustees, we acknowledge we have overall responsibility for ensuring that Thedwastre Education 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 Directors has delegated the day-to-day responsibility to the Chief Executive Officer, as Accounting Officer, for ensuring financial controls conform to the requirements of both propriety and good fiscal management, and in accordance with the requirements and responsibilities assigned to it in the funding agreement between Thedwastre Education Trust and the Secretary of State for Education. They are also responsible for reporting to the Board of Trustees any material weaknesses or breakdowns in internal control.

The information on governance included here supplements that described in the Trustees' Report and in the Trustees' Responsibilities Statement. The Board of Directors has formally met six times (excluding the Annual General Meeting) during the accounting period in addition to several other informal meetings. Attendance during the year at meetings of the Board of Directors was as follows:

The Trust has conducted its Annual Governance Review and has brought in external support in order to assist with the Financial Governance to ensure Regulatory requirements are met. This resulted in good levels of assurance from the internal financial scrutiny review with only relatively minor recommendations for further improvement from external auditors. An internal audit of payroll was completed during the year.

Finance, Audit and Risk Committee

The Finance, Audit & Risk Committee is a sub-committee of the Board of Directors and consists of Directors appointed by the Board alongside one representative from each LGB. Its purpose is to address financial matters and monitor the Trust’s internal control framework and compliance with regulations also acting as the Audit Committee. In addition to fulfilling its routine responsibility the committee has also set the financial policies for the Trust and ensured compliance with the Academies Handbook and other financial arrangements that academy trusts are required to adhere to.

Financial information was sent to Directors on a monthly basis for review and discussed at the Board and Committee meetings as necessary.

Attendance at meetings in the year was as follows:

As Accounting Officer, the Chief Executive Officer 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 maximising the educational and wider societal outcomes achieved in return for the taxpayer resources received.

Throughout each academic year the Accounting Officer considers whether the Trust’s use of its resources is providing good value for money and reports this to the Board of Directors, highlighting any opportunities where value for money can be improved.

The Accounting Officer also oversees the estate to ensure this remains safe and well maintained.

The Accounting Officer for the academy trust has delivered improved value for money during the year by:

• Reviewing its business function to ensure the effective operation of all finance and business functions

• Advised the Board of Directors to consider pooling Absence Insurance risk to provide greater value for money to academies within the Trust

• Organised some staff training and CPD activities centrally

• Provided oversight of the Trust’s catering and cleaning contracts providing improved value for money and a better range of services offered

• Implemented a tender exercise for the appointment of the Trust’s catering and property management contractors to provide best value for money and quality of service as well as a safe provision of services

• Undertook a review of MIS providers and completed a tender exercise to ensure greater value for money and efficient systems

• Review the options for financial systems for future investment

• Applied for a further three Condition Improvement Fund projects, being successful in one

• Undertook a review of energy consumption across the schools to identify options for long term savings

• Pooled the capital funds available to the Academies to invest strategically in LED lighting at three schools

• Developed a further programme of tenders for the coming year to ensure all Academies within the Trust benefit from collective purchasing and economies of scale.

The Board of Directors have been robust in their challenge of spending and budget allocation to ensure that the trust was able to set a realistic budget for 2023-24.

The system of internal financial 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 Trust policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and then manage them efficiently, effectively, and economically. The system of internal control has been in place for the period 1 September 2022 to 31st August 2023, and up to the date of approval of the annual report and financial statements.

The Board of Directors 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 Directors is of the view that there is a formal on-going process for identifying, evaluating, and managing the academy trust’s significant risks that has been in place for the period 1st September 2022 to 31st August 2023, and up to the date of the approval of the annual report and financial statements. This process is regularly reviewed by the Board of Directors.

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 monthly financial reports which are reviewed and agreed by the board of trustees;

• regular reviews by the Finance, Audit and Risk Committee of reports which indicate financial performance against the forecasts and of major purchase plans, capital works and expenditure programmes;

• monitoring key financial performance indicators;

• clearly defined purchasing procedures;

• delegation of authority and segregation of duties;

• identification and management of risks.

The Board of Directors has considered the need for a specific internal audit function and appointed an external company to perform this role. Their role includes giving advice on financial matters and performing a range of checks on each Academy's financial systems as directed by the Board. In particular the checks carried out in the period included a review of purchasing, income collection and payroll procedures. Some areas requiring improvement were noted and an action plan to address these has been prepared.

The Purpose of the System of Internal Controls

The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk of failure to achieve policies, aims and objectives; it can therefore only provide reasonable and not absolute assurance of effectiveness.

The system of internal control is based on an ongoing process designed to identify and prioritise the risks to the achievement of academy 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. This system of internal control has been in place in Thedwastre Education Trust from 1st September 2022 to 31 August 2023, and up to the date of approval of the annual report and financial statements.

As accounting officer the Chief Executive Officer has responsibility for reviewing the effectiveness of the system of internal control. During the year in question the review has been informed by:

• The work of the external company reviewing the fiscal management and governance arrangements;

• The work of the internal audit reviewer;

• The work of the external auditor;

• The financial management and governance self-assessment process; and

• The work of the senior Trust staff and budget holders within the academy trust who have responsibility for the development and maintenance of the internal control framework.

The Accounting Officer has been advised of the implications of the result of their review of the system of internal control by the Finance, Audit & Risk Committee, and a plan to ensure continuous improvement of the system is in place.

Approved by order of the board of trustees on 30 November 2023 and signed on its behalf by:

As accounting officer of Thedwastre Education 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 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 Academy 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 Academy 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 Thedwastre Education Trust for the purposes of company law) are responsible for preparing the trustees' report and the accounts in accordance with the Academies Accounts Direction 2022 to 2023 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 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 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 30 November 2023 and signed on its behalf by:

Opinion

We have audited the accounts of Thedwastre Education Trust for the year ended 31 August 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the accounts, including 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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

·    Enquiry of senior leadership, Governors/Trustees and those charged with governance around actual

and potential litigation and claims as well as actual, suspected and alleged fraud;

·    Reviewing minutes of meetings of those charged with governance;

·    Assessing the extent of compliance with the laws and regulations considered to have a direct material

effect on the financial statements or the operations of the company through enquiry and inspection;

·    Reviewing financial statement disclosures and testing to supporting documentation to assess

compliance with applicable laws and regulations including compliance with the Academies Accounts

Direction 2022 to 2023 issued by the Education and Skills Funding Agency;

·    Performing audit work over the recognition of grant income and the allocation of expenditure to funds;

·    Performing audit work over the risk of management bias and override of controls, including testing of

journal entries and other adjustments for appropriateness, evaluating the rationale of significant

transactions outside the normal course of business and reviewing accounting estimates for indicators of

potential bias.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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 29 August 2023 and further to the requirements of the Education 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 Thedwastre Education 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 Thedwastre Education Trust and ESFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to the Thedwastre Education 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 Thedwastre Education 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 Thedwastre Education Trust’s funding agreement with the Secretary of State for Education dated 23 December 2015 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:

• 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' 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 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 on pages 25 to 52 were approved by the trustees and authorised for issue on 30 November 2023 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 2022 to 2023 issued by ESFA, the Charities Act 2011 and the Companies Act 2006.

Thedwastre Education Trust meets the definition of a public benefit entity under FRS 102.

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

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 have made 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.

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.

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 £2,000 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 proportion of the land and buildings occupied by the Academy has been provided by site trustees under mere licence (also referred to as a Church Supplemental Agreement) which contains a two year notice period.

As the Academy Trust occupies the land and such buildings as may be or may come to be erected on it by a mere licence that transfers to the academy no rights or control over the site save that of occupying it at the will of the site trustees under the terms of the relevant site trust, the trustees have concluded that the value of any land and buildings occupied by the academy trust under a Church Supplemental Agreement will not be recognised on the balance sheet of the company.

The building in which Thurston Primary Academy operates from 1 September 2021 was commissioned and built by the Local Authority during the year prior to opening. Thedwastre Education Trust were given access to the property in September 2021 on a Church customary occupancy basis. This building has not been recognised in these accounts.

In certain circumstances a two year Church Supplemental Agreement may give rise to an annual donation equal to the equivalent of rent not charged, an annual rental expense and a prepayment equal to the value of two years notional rent, if the value of rent not charged can be reliably measured. In this case of the aforementioned agreements it is the belief of the academy trust that the value of rent not charged cannot be reliably measured and as a result no amounts relating to the value of rent not charged have been recognised.

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. 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.

Tangible fixed assets are recognised at cost or valuation, less accumulated depreciation and any impairment. Depreciation takes place over the estimated useful life, down to the assessed residual value. The carrying amount of the academy's fixed assets is tested as soon as changed conditions show that a need for impairment has arisen.

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 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 liability.

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

• financial and support services.

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

• 5% of GAG income.

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 £416,820 (2022 - £385,870).

One or more of the trustees has been paid remuneration or has received other benefits from an employment with the academy trust. The Headteacher and other staff trustees only receive remuneration in respect of services they provide undertaking the roles of Headteacher 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:

P Mackay (CEO and trustee)

    Remuneration £65,001 - £70,000 (2022 - £55,001 - £60,000)

    Employer’s pension contributions £15,001 - £20,000 (2022 - £10,001 - £15,000)

During the year no expenses were reimbursed or paid directly to any of the trustees (2022: None).

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

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.

A proportion of the land and buildings occupied by the Academy has been provided by site trustees under mere licence (also referred to as a Church Supplemental Agreement) which contains a two year notice period.

As the Academy Trust occupies the land and such buildings as may be or may come to be erected on it by a mere licence that transfers to the academy no rights or control over the site save that of occupying it at the will of the site trustees under the terms of the relevant site trust, the trustees have concluded that the value of any land and buildings occupied by the academy trust under a Church Supplemental Agreement will not be recognised on the balance sheet of the company.

The building in which Thurston Primary Academy operates from 1 September 2021 was commissioned and built by the Local Authority during the year prior to opening. Thedwastre Education Trust were given access to the property in September 2021 on a Church customary occupancy basis. This building has not been recognised in these accounts.

During the year the Trust received CIF funding of £50,810 (2022 - £42,100) that was spent on improvements to Diocesan property occupied by the Trust. This has been included in maintenance to buildings and premises expenditure in note 9.

Included above are salix loans from the ESFA which are repayable over 8 years. No interest is charged on these loans.

At the balance sheet date the Academy Trust was holding funds received in advance of the 2023/24 financial year in respect of parental contributions to trips of £12,992 (2022 - £9,017), universal infant free school meals of £62,815 (2022 - £51,154), growth funding of £nil (2022 - £208,290), other grant funding of £7,070 (2022 - £nil) and SEN funding of £57,533 (2022 - £50,733).

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 Suffolk County Council. Both are multi-employer defined benefit schemes.

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.

Contributions amounting to £nil (2022 - £nil) were payable to the schemes at 31 August 2023.

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 academy trusts. 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 2024.

The employer's pension costs paid to the TPS in the period amounted to £386,789 (2022 - £352,056).

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 26% 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:

The actuarial valuation prepared under FRS102 in respect of the Local Government Pension Scheme indicated that Thedwastre Education Trust's share of the scheme was £137,000 in surplus at the year end. At the time of approving the accounts, the trustees have no indication that this will result in either a refund of contributions or a reduction in future contributions and therefore the corresponding asset has not been reflected in these accounts.

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

Restricted general funds and other restricted fixed funds

These relate to the Academy's development and operational activities. The restricted grant income in the year all relates to the provision of education for the students attending the academy.

Restricted fixed asset fund

Restricted fixed assets funds represent capital funding received from the ESFA and other sources. In accordance with the accounting policies set out in note 1, assets are capitalised where applicable, and depreciation is charged to this fund over the assets' useful economic life. Where costs are not capital in nature they are charged directly to this fund as an expense.

Pension reserve

The pension provision equates to the deficit on the Local Government Pension Scheme FRS102 valuation.

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.

Restriction on surplus GAG

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

Included in commitments in the previous year is £11,815 for new play equipment at Rattlesden Primary Academy.

Owing to the academy trust's operations and the composition of the board of governors being drawn from local public and private sector organisation, transactions may take place with organisation in which the academy trust has an interest. All transactions involving such organisation are conducted at arm's length and in accordance with the academy trust's financial regulations and normal procurement procedures.

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.

A proportion of the land and buildings occupied by the Academy has been provided by site trustees under mere licence (also referred to as a Church Supplemental Agreement) which contains a two year notice period. The licence is held between the Academy Trust and the Boards of Finance and the Board of Education of the Diocese of St Edmundsbury and Ipswich.

Since no notice has been given, the Academy Trust has the right to occupy the premises for at least two years following the balance sheet date.

As the Academy Trust occupies the land and such buildings as may be or may come to be erected on it by a mere licence that transfers to the academy no rights or control over the site save that of occupying it at the will of the site trustees under the terms of the relevant site trust, the trustees have concluded that the value of any land and buildings occupied by the academy trust under a Church Supplemental Agreement will not be recognised on the balance sheet of the company.

The building in which Thurston Primary Academy operates from 1 September 2021 was commissioned and built by the Local Authority during the year prior to opening. Thedwastre Education Trust were given access to the property in September 2021 on a Church customary occupancy basis. This building has not been recognised in these accounts.

In certain circumstances a two year Church Supplemental Agreement may give rise to an annual donation equal to the equivalent of rent not charged, an annual rental expense and a prepayment equal to the value of two years notional rent, if the value of rent not charged can be reliably measured. In this case of the aforementioned agreements it is the belief of the academy trust that the value of rent not charged cannot be reliably measured and as a result no amounts relating to the value of rent not charged have been recognised.

No related party transactions took place in the period of account.

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.