cambridge meridian academies trust · trustees of cambridge meridian academies trust are also the...

Registered number: 07552498

CAMBRIDGE MERIDIAN ACADEMIES TRUST

(A company limited by guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2015



CONTENTS

Page

Reference and administrative details of the trust, its members/trustees and advisers 1 - 3

Trustees' report 4 - 10

Governance statement 11 - 15

Statement on regularity, propriety and compliance 16

Trustees' responsibilities statement 17

Independent auditors' report 18 - 19

Independent reporting accountant's assurance report on regularity 20 - 21

Statement of financial activities 22 - 23

Balance sheet 24 - 25

Cash flow statement 26

Notes to the financial statements 27 - 52



REFERENCE AND ADMINISTRATIVE DETAILS OF THE TRUST, ITS MEMBERS/TRUSTEES ANDADVISERS


Trustees and members

S Jamieson, Chair of TrusteesJ HallM Woods, Executive Principal and Accounting OfficerM FoxJ HandyD RuddyM SquiresA HardyL Birch

Company registered number

07552498

Principal and registered office

Gibraltar Lane, Swavesey, Cambridgeshire, CB24 4RS

Company secretary

Stone King LLP

Executive principal

M Woods

Senior management teams

Cambridge Meridian Academies Trust:M Woods, Executive PrincipalDr I McEwan, Chief Operating OfficerM Sampson, Trust Network ManagerL Daniel, Vice PrincipalR Spencer, Vice Principal (School Improvement)

Swavesey Village College:A Daly, PrincipalJ Parris, Deputy PrincipalJ Stavrou, Deputy PrincipalS Gent, Assistant PrincipalR Davies, Assistant PrincipalH Turner, Assistant PrincipalA Karia, Assistant PrincipalD Wallace, Assistant Principal (appointed 01/09/2015)M Wyatt, Assistant PrincipalS Russell, Director of School and Community Sport

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REFERENCE AND ADMINISTRATIVE DETAILS OF THE ACADEMY, ITS MEMBERS/ TRUSTEES ANDADVISERS


Administrative details (continued)

Nene Park Academy:S Howard, PrincipalM Petersen, Vice PrincipalL Mawby, Vice Principal (appointed 14/10/2015)E Elliott, Vice PrincipalG Fullard, Assistant PrincipalM Albinson, Assistant PrincipalL Pritchard, Assistant PrincipalK Ainslie, Assistant PrincipalL Bryan, Assistant PrincipalA Oleksow, Assistant PrincipalK Hartley, Assistant Principal

North Cambridge Academy:M Campbell, PrincipalS Fox, Deputy PrincipalS Pattison, Assistant PrincipalN Smith, Assistant Principal

West Town Primary Academy:J Dooley, PrincipalH Quinn, Deputy PrincipalR Cruise, Assistant PrincipalK Bacon, Assistant PrincipalE Houlton, Assistant Principal

Stamford Welland Academy:A Partington, PrincipalJ Chong, Vice PrincipalS Cooper, School Business ManagerS Alam, Senior Assistant PrincipalJ Nolan, Assistant PrincipalA Wallis, Assistant PrincipalH Twigger, Assistant Principal (appointed 01/09/2015)S Bull, Associate Assistant PrincipalT Hayes, Associate Assistant Principal

Sawtry Village Academy:S Shaw-Wilson, PrincipalS Parsons, Deputy PrincipalP Baynes, Assistant PrincipalD Bridgeman, Assistant PrincipalJ Jones, Assistant PrincipalN Wilson, Assistant PrincipalK Hicks, Assistant Principal (appointed 01/09/2015)H Forreser, Assistant Principal

Independent auditors

Larking Gowen, King Street House, 15 Upper King Street, Norwich, NR3 1RB

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REFERENCE AND ADMINISTRATIVE DETAILS OF THE ACADEMY, ITS MEMBERS/ TRUSTEES ANDADVISERS


Administrative details (continued)

Bankers

Barclays Bank plc, Huntington, PE29 3AE

Solicitors

Stone King LLP, Thirty Station Road, Cambridge, CB1 2RE

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TRUSTEES' REPORT


The trustees (who are also directors of the charity for the purposes of the Companies Act) present their annualreport together with the audited financial statements and auditors' report of Cambridge Meridian AcademiesTrust for the year ended 31 August 2015. The trustees confirm that the annual report and financial statementsof the trust comply with the current statutory requirements, the requirements of the trust's governing documentand the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting byCharities" issued in March 2005. The annual report serves the purposes of both a trustees' report and adirectors' report under company law.

Structure, governance and management

a. CONSTITUTION

The trust is a company limited by guarantee and an exempt charity. The charitable company's Memorandumand Articles of Association (updated 17 March 2014) are the primary governing documents of the trust. Thetrustees of Cambridge Meridian Academies Trust are also the directors of the charitable company for thepurposes of company law. The charitable company is known as Cambridge Meridian Academies Trust.

Details of the trustees who served during the year are included in the reference and administrative details onpage 1.

b. MEMBERS' LIABILITY

Each member of the charitable company undertakes to contribute to the assets of the charitable company inthe 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 ceasedto be a member.

c. TRUSTEES' INDEMNITIES

The trust is in the process of purchasing insurance to cover trustees, governors and officers from claims arisingfrom negligent acts, errors or omissions occurring while on trust business.

d. PRINCIPAL ACTIVITIES

The trust operated six academies in the financial year, Swavesey Village College (SVC), Nene Park Academy(NPA), North Cambridge Academy (NCA), West Town Primary Academy (WTPA), Stamford Welland Academy(SWA) since 1 October 2014 and Sawtry Village Academy (SVA) since 1 April 2015.

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TRUSTEES' REPORT (continued)FOR THE YEAR ENDED 31 AUGUST 2015

e. METHOD OF RECRUITMENT AND APPOINTMENT OR ELECTION OF TRUSTEES

The number of trustees shall be not less than three but not subject to any maximum. The company shall havethe following trustees:

(a) The Executive Principal of Cambridge Meridian Academies Trust(b) Up to eight community trustees (b) Up to five education trustees, and(d) A minimum of two parent trustees if appointed pursuant to Articles 53 55, unless there are Local

Governing Bodies or Advisory Bodies which include at least two parent members.

The trustees may appoint up to two Co opted trustees.

In certain circumstances the Secretary of State has the power to appoint trustees.

The Members may elect:

- the community trustees. The community trustees shall be drawn from the communities served by the academies.

- the education trustees. The education trustees shall have a background in education. - the community trustees and the education trustees through such process as they may determine.

The total number of trustees (including the Executive Principal) who are employees of the trust shall notexceed one third of the total number of trustees.

f. POLICIES AND PROCEDURES ADOPTED FOR THE INDUCTION AND TRAINING OF TRUSTEES

The training and induction provided for new trustees will depend on their existing experience; an induction packis given to all trustees. During the year, the trust has subscribed to the Governing Bodies Training Programmeprovided by the local authority; the National Governors Association and the Specialist Schools AcademiesTrust. All trustees are provided with copies of policies, procedures, minutes, accounts, budgets, plans and anyother documents that they will need to undertake their role as trustees. As there are normally only two or threenew trustees a year, induction tends to be done informally and is tailored specifically to the individual.

g. ORGANISATIONAL STRUCTURE

A clear management structure exists to effectively manage the trust. The structure now consists of four levels,the trustees, the local governing bodies (LGB), the trust executive and the academy senior leadership teams(SLT). The aim of the management structure is to devolve responsibility and encourage involvement indecision making at all levels.

The trust is responsible for strategic direction and planning, approving the academies budgets, monitoringindividual academy performance and making major decisions about the direction of the trust. The localgoverning bodies are responsible for setting individual school policy, approving the school development planand staff appointments.

The trust executive team consists of the CEO, COO, trust finance managers, trust site manager and trust ITdirector.

The senior leadership teams comprise of the Principal, Deputy Principals and Assistant Principals. Thesemanagers control each academy at an executive level implementing the policies laid down by the trust. As agroup, the senior leadership teams are responsible for the authorisation of spending within agreed budgets andthe appointment of staff.

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h. RISK MANAGEMENT

The trust has assessed the major risks to which it is exposed, in particular those relating to the specificteaching, provision of facilities and other operational areas of the trust, and its finances, all of which areoutlined on the risk register. The trustees/governors have implemented a number of systems to assess the risksthat each academy faces, especially in the operational areas (e.g. in relation to teaching, health and safety,bullying and school trips) and in relation to the control of finance. They have introduced systems, includingoperational procedures (e.g. vetting of new staff and visitors, supervision of school grounds) and internalfinancial controls in order to minimise risk. Where significant financial risk still remains, they have ensured thatthey have adequate insurance cover. The trust has an adequate system of internal financial controls and this isexplained in more detail in the statement on internal control.

Objectives and Activities

a. OBJECTS AND AIMS

The trust’s object is specifically restricted to the following:

To advance for the public benefit education in the United Kingdom, in particular but without prejudice to thegenerality of the foregoing by establishing, maintaining, carrying on, managing and developing schools offeringa broad and balanced curriculum.

To promote for the benefit of the inhabitants of the areas in which the academies are located and thesurrounding areas the provision of facilities for recreation or other leisure occupation of individuals who haveneed of such facilities by reason of their youth, age infirmity or disablement, financial hardship or social andeconomic circumstances or for the public at large in the interests of social welfare and with the object ofimproving the condition of life of the said inhabitants.

b. OBJECTIVES, STRATEGIES AND ACTIVITIES

It is the belief of the trust that the individual needs of every student should lie at the heart of any educationsystem.

The trust equips, enables and encourages the students to achieve their very best. The trust wants them to besuccessful learners, confident individuals and responsible citizens.

The trust aims to accomplish this by keeping every single one of the young people at the very core of the trust’swork.

As part of the CMAT family, the academies pool expertise and resources, think more strategically and workmore confidently and imaginatively; providing collectively a higher quality education than could be achievedindividually.

The hard endeavour and outstanding dedication of the staff has been vital to what has been achieved. Thestudents and their families have been hugely supportive of the changes.

The trust is exceptionally proud of the achievements so far, but it is also looking to the future. There is anexciting opportunity for the trust at Northstowe and the trustees are confident that further opportunities willcome that enhance the capacity and expertise of the trust’s family of schools.

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In the end though, what matters most is the quality of the education the students receive. The trustees areproud that the trust has built an environment which enables the students to learn well, to be receptive to theexcellent teaching provided and, most of all, to flourish.

The full CMAT annual review is at www.cmaTrust.net. The trust is particularly proud of the following:

1) The rapid improvement at Stamford Welland Academy reflected in student outcomes and relevant Ofsted inspection documentation.

2) CMAT academies have continued to take a leading role in key organisations such as Whole Education, the SSAT and in supporting many LA projects to further school improvement in the areas we serve.

3) North Cambridge Academy was judged “good” with “outstanding” leadership and management by Ofsted.

4) All progress measures at West Town Primary Academy are in the top 15% of schools nationally.

5) The Financial Notice to Improve has been removed from Sawtry Village Academy.

6) The value for money provided by the skilful management of the extension programme at Swavesey Village College.

7) Nene Park Academy being full with students from the community it serves who selected this school as their first choice for secondary education.

c. ACTIVITIES FOR ACHIEVING OBJECTIVES

CMAT and SVC maintained an excellent track record in providing support for Local Authorities and schoolsoften through Teaching Schools Alliance initiatives. In recognition of our commitment to system ledimprovement, Ofsted have taken a CMAT Senior Leader onto an innovative collaborative project to increaseour capacity to undertake school to school support projects. With the backdrop of the acknowledged unfairCambridgeshire funding, CMAT has continued to thrive. In its first inspection since joining the trust, NPA wasrated "Good" by Ofsted.

d. PUBLIC BENEFIT

The charitable company's aims are set out in this report. The trustees have complied with their duty to havedue regard to guidance on public benefit published by the Charity Commission in exercising their powers orduties.

Strategic report

Achievements and performance

a. GOING CONCERN

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

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b. KEY FINANCIAL PERFORMANCE INDICATORS

The board of trustees continues to use both financial and non financial key performance indicators to managethe trust. The trust maintains a strong management information function which is focused on regular andaccurate reporting including the issue of termly financial information to the trust inclusive of a financialcommentary. Financial KPIs are measured continuously and the trust was successful in delivering its financialsurplus in the year.

c. FINANCIAL REVIEW

Most of the trust’s income is obtained from the Education Funding Agency (EFA) in the form of recurrentgrants, the use of which is restricted to particular purposes. These grants received from the EFA during theyear ended 31 August 2015 and the associated expenditure are shown as restricted funds in the Statement ofFinancial Activities.

The trust has also been in receipt of capital grants from the EFA through the bid process for CapitalMaintenance Fund. In accordance with the Charities Statement of Recommended Practice, ‘Accounting andReporting by Charities’ (SORP 2005), such grants are shown in the Statement of Financial Activities asrestricted income in the fixed asset fund. The restricted fixed asset fund balance is reduced by annualdepreciation charges over the expected useful life of the assets concerned.

During the year ended 31 August 2015, total expenditure of £24,719,009 was more than covered by recurrentgrant funding from the EFA together with other incoming resources. The excess of income over expenditurefor the year (excluding pension funds, assets and liabilities transferred on schools joining the trust and restrictedfixed asset funds movements) was £428,404.

At 31 August 2015, the net book value of fixed assets was £28,713,574 and movements in tangible fixed assetsare shown in the note 17 to the financial statements. The assets were used exclusively for providing educationand the associated support services to the pupils of the Trust.

d. INVESTMENT POLICY AND PERFORMANCE

During this year, the trust has held all its funds in an interest bearing current account.

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Financial review

a. FINANCIAL AND RISK MANAGEMENT OBJECTIVES AND POLICIES

The trust’s main source of income is funding from the EFA that is paid monthly to the academies throughoutthe year. Given this and the planned reserves at each academy the trust board do not consider they have acash flow or liquidity risk.

b. PRINCIPAL RISKS AND UNCERTAINTIES

The trust board has considered and agreed an on going risk register. The trust board considers the principlerisks and uncertainties are regarding changes in funding levels, the inherited declining rolls at Sawtry andStamford and the actions of Cambridgeshire LA with regard to places planning in the north of Cambridge. Allschools aim to maximise the recruitment and retention of students and the trust board seeks to ensuremaximum funding is received.

c. RESERVES POLICY

The trustees will review the reserve levels of the trust in accordance with the trust reserves policy. This reviewencompasses the nature of income and expenditure streams, the need to match income commitment and thenature of reserves.

Trustees determine what the level of uncommitted reserves should be. The aim is to provide sufficient workingcapital to cover delays between spending and receipt of grants and to provide a cushion to deal withunexpected emergencies such as urgent maintenance.

At 31 August 2015 the trust had revenue reserves of £2,508,879 (split between restricted & unrestricted).

The pension reserve is in deficit due to the trust‘s share of the Local Government Pension Scheme (LGPS)liabilities exceeding its share of the assets.

Plans for future periods

a. FUTURE DEVELOPMENTS

The trust is keen to explore and develop partnership models, including inviting good or outstanding schools toshare in its family of schools, to work with the trust to share best practice and increase the individual andcollective school improvement capacity.

FUNDS HELD AS CUSTODIAN TRUSTEE ON BEHALF OF OTHERS

The trust, through SVC, acts as banker school for East and South Cambridgeshire Improvement Partnership(ESCIP) which represents 13 schools in the locality. Funding for provision of Education Other Than At School(EOTAS) is devolved by the local authority to this group to deliver this provision, the annual sum devolved is£1.2m (In 2014/15 a top slice of £176k has been deducted to fund central provision).

Funds are held in a control account within the trust's accounting software and reported on at the regular ESCIPmeetings and an annual statement is agreed by the committee, these transactions and balances are includedas part of the external audit each year.

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GOVERNANCE STATEMENT

SCOPE OF RESPONSIBILITY

As trustees, we acknowledge we have overall responsibility for ensuring that Cambridge Meridian AcademiesTrust has an effective and appropriate system of control, financial and otherwise. However such a system isdesigned to manage rather than eliminate the risk of failure to achieve business objectives, and can provideonly reasonable and not absolute assurance against material misstatement or loss.

The trust board has delegated the day-to-day responsibility to the Executive Principal, as accounting officer, forensuring financial controls conform with the requirements of both propriety and good financial management andin accordance with the requirements and responsibilities assigned to it in the funding agreement betweenCambridge Meridian Academies Trust and the Secretary of State for Education. They are also responsible forreporting to the trust board any material weaknesses or breakdowns in internal control.

GOVERNANCE

The information on governance included here supplements that described in the trustees' report and in thetrustees' responsibilities statement. The trust board has formally met 4 times during the year. Attendanceduring the year at meetings of the trust board was as follows:

Trustee Meetings attended Out of a possible

S Jamieson, Chair of Trustees 4 4J Hall 2 4M Woods, Executive Principal and AccountingOfficer

4 4

M Fox 2 4J Handy 4 4D Ruddy 3 4M Squires 2 4A Hardy 4 4L Birch 4 4

The Finance Committee is a sub-committee of the main trust board. Its purpose is to monitor and review thefinancial performance of the trust, including budget setting and monitoring.

Attendance at meetings in the year was as follows:

Meetings attended Out of a possible

A Hardy 4 4D Ruddy 3 4M Woods 4 4G Brighty 2 4M Dixon 3 4P Whitbread 2 4

The audit committee is also a sub committee of the main trust board. Its purpose is to review the effectivenessof the internal controls systems and internal audit function, to review with the external auditors the findings oftheir work and to respond to, and advise on, other issues within the trust that have wider implications thansolely financial consequences. The audit committee will therefore review the risks to internal financial controlat the trust and agree an annual programme of work that will address these risks, inform the statement ofinternal control and, so far as is possible, provide assurance to the external auditors.

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GOVERNANCE STATEMENT (continued)

Attendance at meetings in the year was as follows:

Meetings attended Out of a possible

M Fox 3 3J Handy 2 3M Bedlow 3 3

REVIEW OF VALUE FOR MONEY

As accounting officer, the Executive Principal has responsibility for ensuring that CMAT delivers good value inthe use of public resources. The accounting officer understands that value for money refers to the educationaland wider societal outcomes achieved in return for the taxpayer resources received.

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

The trust is accountable for the way in which academy’s resources are allocated to meet the objectives set outin the academy’s development plans. Trustees need to secure the best possible outcome for pupils, in the mostefficient and effective way, at a reasonable cost. This will lead to continuous improvement in the academiesachievements and services.

What is Best Value

Trustees will apply the four principals of best value:

• Challenge: Why, how and by whom a service is provided • Compare: academy performance against available data. • Consult: With service users, the local community etc. • Competition: Wherever practicable, to secure efficient and effective services

The Trustees’ Approach

The trustees and academy managers apply the principles of best value when making decisions about:

• the allocation of resources to best promote the aims and values of individual academies • the targeting of resources to best improve standards and the quality of provision • the use of resources to best support the various educational needs of all pupils

The trustees and the academy managers:

• make comparisons with other/similar academies using available data, e.g. RAISE online, quality of teaching and learning, levels of expenditure

• challenge proposals, examining them for effectiveness, efficiency, and cost • require suppliers to compete on grounds of cost and quality/suitability of services/products • consult individuals and organisations on quality/suitability of service we provide to parents, pupils, and

services we receive from providers

This will apply in particular to:

• staffing – Trustees, governors and academy managers deploy staff to provide best value in terms of quality of teaching, quality of learning, adult-pupil ratio, and curriculum management with a clear focus on individual student achievement.

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• use of premises – Trustees, governors and academy managers consider the allocation and use of teaching areas, support areas and communal areas, to provide the best environment for teaching and learning, for support services, and for communal access to central resources and opportunities to generate income from the premises assets.

• use of resources – Trustees, governors and academy mangers deploy equipment, materials and services to provide pupils and staff with resources which support high quality teaching and learning.

• quality of teaching – Trustees, governors and academy managers review the quality of curriculum provision and quality of teaching, to provide parents and pupils with a curriculum which meets the requirements of the National Curriculum, National Literacy Strategy and National Numeracy Strategy, and the needs of the pupils and teaching which builds on previous learning and has raised expectations of children’s achievement.

• quality of learning – Trustees, governors and academy managers review the quality of pupil’s learning by setting and tracking pupil achievement targets.

• purchasing – Trustees, governors and academy managers have clear procedures for assessing need, and obtaining goods and services which provide best value in terms of suitability, efficiency, time and cost.

• pupil’s welfare – Trustees, governors and academy managers review the quality of the academy environment and the academy ethos, in order to provide a supportive environment conducive to learningand recreation.

• health and safety – Trustees, governors and academy managers review the quality of the academy environment and equipment, carrying out risk assessments where appropriate, in order to provide a safe working environment for pupils, staff and visitors.

These areas are monitored for best value by:

1. Departmental reviews by the Principal & Senior Leadership Team 2. Target setting meetings between Principal, Senior Leadership Team and head of departments 3. Annual performance management 4. Annual budget planning 5. Feedback from internal auditor and audit reports 6. Analysis of individual academy pupil performance data 7. Benchmarking across the Trust and with comparable schools locally 8. Analysis of DfE pupil performance data 9. Key issues for action identified by OFSTED 10. Trustee committee meetings 11. Trustee annual staff salary review

The trust has engaged with other educational providers over the last year to share delivery and good practice –these include Cambridge & Peterborough Academies Group and Cambridge Primary Education Trust. As a multi academy trust CMAT provides the following shared services across the trust:

• ICT • HR • Finance • Premises • Audit • Educational Support Services

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2014/15

At Swavesey Village College resource was found to support an ACMF bid for capital monies of £2.74m which inturn released a further £400k of funding from the Local Authority making a total grant from the Local Authorityof £2.6m.

Funds have been allocated from North Cambridge Academy budget to support enabling works for the PSBPprogramme costing £10m.

In the last year the catering contract has been re-tendered and provision across the trust has been unified andcosts reduced.

The trust is committed to maximising the income from the resources at its disposal and is currently reviewingthe level of income derived from lettings and associated activities.

Review and control

Budget reports are produced on a monthly basis, additional leadership resource has been recruited to furtherdevelop the provision of timely, accurate and strategic reports as the trust continues to grow.

Funding in Cambridgeshire is amongst the lowest in the country and spare resources are scarce, howeverTrustees are keen to establish an acceptable level of reserves.

The trust has a Risk Register which is currently being reviewed to ensure there is a clear focus on the mostrelevant and appropriate strategic financial risks.

The trust has an internal Audit function which produces regular reports for the audit committee and this issupported by the external auditors work.

The main challenges for the coming year are managing the anticipated growth of the trust, integrating new staffinto the Core Trust Service teams, particularly in the finance function, ensuring all pupils achieve,standardisation of systems and procedures across the trust, further refining our schemes of delegation,encouraging good or outstanding academies/schools to join the trust and re-establishing a working relationshipand trust with Cambridgeshire County Council.

THE PURPOSE OF THE SYSTEM OF INTERNAL CONTROL

The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all riskof failure to achieve policies, aims and objectives; it can therefore only provide reasonable and not absoluteassurance of effectiveness. The system of internal control is based on an ongoing process designed to identifyand prioritise the risks to the achievement of trust policies, aims and objectives, to evaluate the likelihood ofthose risks being realised and the impact should they be realised, and to manage them efficiently, effectivelyand economically. The system of internal control has been in place in Cambridge Meridian Academies Trust forthe year 1 September 2014 to 31 August 2015 and up to the date of approval of the annual report and financialstatements.

CAPACITY TO HANDLE RISK

The trust board has reviewed the key risks to which the trust is exposed together with the operating, financialand compliance controls that have been implemented to mitigate those risks. The trust board is of the view thatthere is a formal ongoing process for identifying, evaluating and managing the trust's significant risks, that hasbeen in place for the year 1 September 2014 to 31 August 2015 and up to the date of approval of the annualreport and financial statements. This process is regularly reviewed by the trust board.

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CAMBRIDGE MERIDIAN ACADEMIESTRUST

We have audited the financial statements of Cambridge Meridian Academies Trust for the year ended 31August 2015 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash flowStatement and the related notes. The financial reporting framework that has been applied in their preparation isapplicable law, United Kingdom Accounting Standards (United Kingdom Generally Accepted AccountingPractice) and the Academies Accounts Direction 2014 to 2015 issued by the Education Funding Agency.

This report is made solely to the trust's members, as a body, in accordance with Chapter 3 of Part 16 of theCompanies Act 2006. Our audit work has been undertaken so that we might state to the trust's members thosematters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extentpermitted by law, we do not accept or assume responsibility to anyone other than the trust and its members,for our audit work, for this report, or for the opinion we have formed.

RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND AUDITORS

As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors of thetrust for the purposes of company law) are responsible for the preparation of the Financial Statements and forbeing satisfied that they give a true and fair view.

Our responsibility is to audit and express an opinion on the financial statements in accordance with applicablelaw and International Standards on Auditing (UK and Ireland). Those standards require us to comply with theAuditing Practices Board's Ethical Standards for Auditors.

SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS

A description of the scope of an audit of financial statements is provided on the Financial Reporting Council'swebsite at www.frc.org.uk/auditscopeukprivate.

OPINION ON FINANCIAL STATEMENTS

In our opinion the financial statements:

give a true and fair view of the state of the trust's affairs as at 31 August 2015 and of its incoming

resources and application of resources, including its income and expenditure, for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting

Practice; and

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

Accounts Direction 2014 to 2015 issued by the Education Funding Agency.

OPINION ON OTHER MATTER PRESCRIBED BY THE COMPANIES ACT 2006

In our opinion the information given in the trustees' report, incorporating the strategic report, for the financialyear for which the financial statements are prepared is consistent with the financial statements.

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INDEPENDENT REPORTING ACCOUNTANTS' ASSURANCE REPORT ON REGULARITY TOCAMBRIDGE MERIDIAN ACADEMIES TRUST AND THE EDUCATION FUNDING AGENCY

In accordance with the terms of our engagement letter dated 29 September 2015 and further to therequirements of the Education Funding Agency (EFA) as included in the Academies Accounts Direction 2014 to2015, we have carried out an engagement to obtain limited assurance about whether the expenditure disbursedand income received by Cambridge Meridian Academies Trust during the year 1 September 2014 to 31 August2015 have been applied to the purposes identified by Parliament and the financial transactions conform to theauthorities which govern them.

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

RESPECTIVE RESPONSIBILITIES OF CAMBRIDGE MERIDIAN ACADEMIES TRUST'S ACCOUNTINGOFFICER AND THE REPORTING ACCOUNTANT

The Accounting Officer is responsible, under the requirements of Cambridge Meridian Academies Trust'sfunding agreement with the Secretary of State for Education dated 30 March 2011, and the AcademiesFinancial Handbook extant from 1 September 2014, for ensuring that expenditure disbursed and incomereceived is applied for the purposes intended by Parliament and the financial transactions conform to theauthorities which govern them.

Our responsibilities for this engagement are established in the United Kingdom by our profession's ethicalguidance and are to obtain limited assurance and report in accordance with our engagement letter and therequirements of the Academies Accounts Direction 2014 to 2015. We report to you whether anything has cometo our attention in carrying out our work which suggests that in all material respects, expenditure disbursed andincome received during the year 1 September 2014 to 31 August 2015 have not been applied to purposesintended by Parliament or that the financial transactions do not conform to the authorities which govern them.

APPROACH

We conducted our engagement in accordance with the Academies Accounts Direction 2014 to 2015 issued byEFA. 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 andexplanations in order to provide us with sufficient appropriate evidence to express a negative conclusion onregularity.

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

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

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STATEMENT OF FINANCIAL ACTIVITIES(incorporating income and expenditure account and statement of total recognised gains and losses)


Unrestrictedfunds

Restrictedfunds

Restrictedfixed asset

fundsTotal

fundsTotalfunds

Note2015

£2015

£2015

£2015

£2014

£

INCOMING RESOURCES

Incoming resources fromgenerated funds:

Transfer from the LocalAuthority on conversion 2 - (128,850) 16,096,283 15,967,433 (688,663)

Activities for generating funds 3 470,104 - - 470,104 392,212 Investment income 4 24,842 - - 24,842 23,762Incoming resources from

charitable activities 5 - 21,932,574 4,240,003 26,172,577 15,664,790Other incoming resources 6 1,821,450 - - 1,821,450 971,345

TOTAL INCOMINGRESOURCES 2,316,396 21,803,724 20,336,286 44,456,406 16,363,446

RESOURCES EXPENDED

Charitable activities 1,507,673 22,541,048 606,787 24,655,508 16,162,986Governance costs 10 - 63,501 - 63,501 38,054

TOTAL RESOURCESEXPENDED 7 1,507,673 22,604,549 606,787 24,719,009 16,201,040

NET INCOMING /(OUTGOING) RESOURCESBEFORE TRANSFERS,CARRIED FORWARD 808,723 (800,825) 19,729,499 19,737,397 162,406

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STATEMENT OF FINANCIAL ACTIVITIES (continued)FOR THE YEAR ENDED 31 AUGUST 2015

Unrestrictedfunds

Restrictedfunds


fundsTotal

fundsTotalfunds

Note2015

£2015

£2015

£2015

£2014

£

NET INCOMING /(OUTGOING) RESOURCESBEFORE TRANSFERS,BROUGHT FORWARD 808,723 (800,825) 19,729,499 19,737,397 162,406

Transfers between funds 24 (75,344) - 75,344 - -

NET INCOME FOR THE YEAR 733,379 (800,825) 19,804,843 19,737,397 162,406

Actuarial gains and losses ondefined benefit pensionschemes - (177,000) - (177,000) (929,000)

NET MOVEMENT IN FUNDSFOR THE YEAR 733,379 (977,825) 19,804,843 19,560,397 (766,594)

Total funds at 1 September2014 1,290,992 (3,072,667) 9,448,468 7,666,793 8,433,387

TOTAL FUNDS AT 31AUGUST 2015 2,024,371 (4,050,492) 29,253,311 27,227,190 7,666,793

All activities relate to continuing operations.

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 27 to 52 form part of these financial statements.

Page 23


(A company limited by guarantee)REGISTERED NUMBER: 07552498

BALANCE SHEETAS AT 31 AUGUST 2015

2015 2014Note £ £ £ £

FIXED ASSETS

Tangible assets 17 28,713,574 8,856,680

Investment property 18 350,000 -

Investments 19 1 -

29,063,575 8,856,680

CURRENT ASSETS

Stocks 20 70,423 50,476

Debtors 21 1,993,018 730,931

Cash at bank and in hand 3,886,587 2,378,049

5,950,028 3,159,456

CREDITORS: amounts falling due withinone year 22 (3,182,616) (1,156,343)

NET CURRENT ASSETS 2,767,412 2,003,113

TOTAL ASSETS LESS CURRENT LIABILITIES 31,830,987 10,859,793

CREDITORS: amounts falling due aftermore than one year 23 (68,797) -

NET ASSETS EXCLUDING PENSIONSCHEME LIABILITY 31,762,190 10,859,793

Defined benefit pension scheme liability 31 (4,535,000) (3,193,000)

NET ASSETS INCLUDING PENSIONSCHEME LIABILITY 27,227,190 7,666,793

FUNDS OF THE TRUST

Restricted funds:

Restricted funds 24 484,508 120,333

Restricted fixed asset funds 24 29,253,311 9,448,468

Restricted funds excluding pension liability 29,737,819 9,568,801

Pension reserve (4,535,000) (3,193,000)

Total restricted funds 25,202,819 6,375,801

Unrestricted funds 24 2,024,371 1,290,992

TOTAL FUNDS 27,227,190 7,666,793

Page 24



CASH FLOW STATEMENTFOR THE YEAR ENDED 31 AUGUST 2015

2015 2014Note £ £

Net cash flow from operating activities 26 1,167,053 249,763

Returns on investments and servicing of finance 27 13,842 23,762

Capital expenditure and financial investment 27 (231,901) 355,564

Cash transferred on schools joining the trust 29 480,864 -

CASH INFLOW BEFORE FINANCING 1,429,858 629,089

Financing 27 78,680 -

INCREASE IN CASH IN THE YEAR 1,508,538 629,089

RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDSFOR THE YEAR ENDED 31 AUGUST 2015

2015 2014 £ £

Increase in cash in the year 1,508,538 629,089

Cash outflow from decrease in debt and lease financing (78,680) -

MOVEMENT IN NET FUNDS IN THE YEAR 1,429,858 629,089

Net funds at 1 September 2014 2,378,049 1,748,960

NET FUNDS AT 31 AUGUST 2015 3,807,907 2,378,049

The notes on pages 27 to 52 form part of these financial statements.

Page 26



NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 AUGUST 2015

1. ACCOUNTING POLICIES

1.1 Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention, with theexception of investment properties which are included at market value. The financial statementshave been prepared in accordance with the Statement of Recommended Practice (SORP),'Accounting and Reporting by Charities' published in March 2005, the Academies AccountsDirection 2014 to 2015 issued by EFA, applicable accounting standards and the Companies Act2006.

The subsidiary undertakings, CMAT Educational Services Limited and Sawtry Multitask SoftwareTraining Limited, have not been consolidated in the parent trust's financial statements on the basisthat the results are immaterial to the users of the group's financial statements.

1.2 Fund accounting

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

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

Restricted general funds comprise all other restricted funds received and include grants from theDepartment for Education.

Investment income, gains and losses are allocated to the appropriate fund.

1.3 Incoming resources

All incoming resources are included in the statement of financial activities when the trust hasentitlement to the funds, certainty of receipt and the amount can be measured with sufficientreliability.

Grants are included in the statement of financial activities on a receivable basis. The balance ofincome received for specific purposes but not expended during the period is shown in the relevantfunds on the balance sheet. Where income is received in advance of entitlement of receipt, itsrecognition is deferred and included in creditors as deferred income. Where entitlement occursbefore income is received, the income is accrued.

General Annual Grant is recognised in full in the year for which it is receivable and any unspentamount is reflected as a balance in the restricted general fund.

Capital grants are recognised when receivable and are not deferred over the life of the asset onwhich they are expended. Unspent amounts of capital grant are reflected in the balance in therestricted fixed asset fund.

Sponsorship income provided to the trust which amounts to a donation is recognised in thestatement of financial activities in the period in which it is receivable, where there is certainty ofreceipt and it is measurable.

Page 27




1. ACCOUNTING POLICIES (continued)

The value of donated services and gifts in kind provided to the trust are recognised at their openmarket value in the period in which they are receivable as incoming resources, where the benefit tothe trust can be reliably measured. An equivalent amount is included as expenditure under therelevant heading in the statement of financial activities, except where the gift in kind was a fixedasset in which case the amount is included in the appropriate fixed asset category and depreciatedover the useful economic life in accordance with the trust's policies.

Donations are recognised on a receivable basis where there is certainty of receipt and the amountcan be reliably measured.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant isrecognised at the time of the donation.

Other income, including the hire of facilities, is recognised in the period in which it is receivable andto the extent the goods have been provided or on completion of the service.

1.4 Resources expended

Expenditure is recognised in the period in which a liability is incurred and has been classified underheadings that aggregate all costs related to that category. Where costs cannot be directly attributedto particular headings they have been allocated on a basis consistent with the use of resources,with central staff costs allocated on the basis of time spent, and depreciation charges allocated onthe portion of the asset's use. Other support costs are allocated based on the spread of staff costs.

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred intrading activities that raise funds.

Charitable activities are costs incurred in the academies educational operations.

Governance costs include the costs attributable to the academies compliance with constitutionaland statutory requirements, including audit, strategic management and trustees' meetings andreimbursed expenses.

All resources expended are inclusive of irrecoverable VAT.

1.5 Going concern

The trustees assess whether the use of going concern is appropriate, i.e. whether there are anymaterial uncertainties related to events or conditions that may cast significant doubt on the ability ofthe trust to continue as a going concern. The trustees make this assessment in respect of a periodof one year from the date of approval of the financial statements.

Page 28





1.6 Tangible fixed assets and depreciation

All assets costing more than £5,000 are capitalised.

The land and buildings of Nene Park Academy and West Town Primary Academy are occupiedunder a short term license. The buildings on conversion at Nene Park Academy have been rebuiltand in due course the new buildings and the land will be transferred from the Local Authority to thetrust on a 125 year lease. The expectation is that in the short term (by October 2016) new schoolbuildings will be built for West Town Primary Academy, and again once complete, the trust willenter into a 125 year lease for the buildings with the Local Authority. While the trust only has theright to occupy the land and buildings on a short term license, no tangible fixed asset value isrecognised in the financial statements in relation to land and buildings for both Nene Park Academyand West Town Primary Academy. Additionally, the trust has not placed any short term valuationon licences to occupy because any valuation of these rights is considered impractical.

North Cambridge Academy joined the trust during the prior period. The freehold title to the NorthCambridge Academy site was transferred to the trust as part of the conversion for £nilconsideration. The North Cambridge Academy buildings are in poor condition and the school is tobe rebuilt under the Priority Schools Building Programme. In view of this the value of the buildingsis judged to be negligible. It is not considered practical to value the underlying land in isolationwithin the financial statements. At such point that the school is rebuilt the property will berecognised in the financial statements.

Where tangible fixed assets have been acquired with the aid of specific grants, either from thegovernment or from the private sector, they are included in the balance sheet at cost anddepreciated over their expected useful economic life. The related grants are credited to a restrictedfixed asset fund in the statement of financial activities and are carried forward in the balance sheet.Depreciation on such assets is charged to the restricted fixed asset fund in the statement offinancial activities so as to reduce the fund over the useful economic life of the related asset on abasis consistent with the trust's depreciation policy. Where tangible fixed assets have beenacquired with unrestricted funds, depreciation on such assets is charged to the unrestricted fund.

Assets in the course of construction are included at cost. Depreciation on these assets is notcharged until they are brought into use.

Tangible fixed assets are stated at cost less depreciation. Depreciation is not charged on freeholdland. Depreciation on other tangible fixed assets is provided at rates calculated to write off the costof those assets, less their estimated residual value, over their expected useful lives on the followingbases:

Freehold property - 50 years straight lineLong term leasehold property - 20 to 30 years straight lineLong term leasehold land - 125 years straight lineMotor vehicles - 5 years straight lineFixtures and fittings - 3 to 10 years straight lineComputer equipment - 1 year straight line

1.7 Investments in subsidiaries

Investments in subsidiaries are stated at cost less provision for impairment.

Page 29





1.8 Investment properties

Investment properties are included in the balance sheet at their open market value in accordancewith Statement of Standard Accounting Practice No.19 and are not depreciated. This treatment iscontrary to the Companies Act 2006 which states that fixed assets should be depreciated but is, inthe opinion of the trustees, necessary in order to give a true and fair view of the financial position ofthe academy.

1.9 Leased assets

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

1.10 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance forobsolete and slow-moving stocks.

1.11 Taxation

The trust is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010and therefore it meets the definition of a charitable company for UK corporation tax purposes.Accordingly, the trust is potentially exempt from taxation in respect of income or capital gainsreceived within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains areapplied exclusively to charitable purposes.

Page 30





1.12 Pensions

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

The TPS is an unfunded scheme and contributions are calculated so as to spread the cost ofpensions over employees' working lives with the trust in such a way that the pension cost is asubstantially level percentage of current and future pensionable payroll. The contributions aredetermined by the government actuary on the basis of quinquennial valuations using a prospectivebenefit method. As stated in note 31, the TPS is a multi-employer scheme and the trust is unable toidentify its share of the underlying assets and liabilities of the scheme on a consistent andreasonable basis. The TPS is therefore treated as a defined contribution scheme and thecontributions recognised as they are paid each year.

The LGPS is a funded scheme and the assets are held separately from those of the trust inseparate trustee administered funds. Pension scheme assets are measured at fair value andliabilities are measured on an actuarial basis using the projected unit method and discounted at arate equivalent to the current rate of return on a high quality corporate bond of equivalent term andcurrency to the liabilities. The actuarial valuations are obtained at least triennially and are updatedat each balance sheet date. The amounts charged to operating surplus are the current servicecosts and gains and losses on settlements and curtailments. They are included as part of staffcosts. Past service costs are recognised immediately in the statement of financial activities if thebenefits have vested. If the benefits have not vested immediately, the costs are recognised overthe period until vesting occurs. The expected return on assets and the interest cost are shown as anet finance amount of other finance costs or credits adjacent to interest. Actuarial gains and lossesare recognised immediately in other gains and losses.

1.13 Schools joining the trust

Upon Stamford Welland Academy and Sawtry Village Academy joining the trust the identifiableassets and liabilities and the operations of the schools were transferred to the trust for £nilconsideration. This has been accounted for under the acquisition accounting method.

The assets and liabilities transferred have been valued at their fair value, being a reasonableestimate of the current market value that the trustees would expect to pay in an open market for anequivalent item. Their fair value is in accordance with the accounting policies set out for CambridgeMeridian Academies Trust. The amounts have been recognised under the appropriate balance sheetcategories, with a corresponding amount recognised in the statement of financial activities andanalysed under unrestricted funds, restricted general funds and restricted fixed asset funds.

Further details of the transaction are set out in note 29.

Page 31




2. VOLUNTARY INCOME

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2015£

2015£

2015£

2014£

Transfer on schools joining the trust - 15,920,481 15,920,481 (688,663)Grants - 46,952 46,952 -

Voluntary income - 15,967,433 15,967,433 (688,663)

The transfer on schools joining the trust comprises £15,570,481 in respect of the net assets and liabilitiesof Stamford Welland Academy and Sawtry Village Academy (see note 29) and a further £350,000 inrespect of a property at North Cambridge Academy.

3. ACTIVITIES FOR GENERATING FUNDS

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2015£

2015£

2015£

2014£

Hire of facilities 109,398 - 109,398 133,595Catering income 138,265 - 138,265 53,710Rental income 10,529 - 10,529 27,504Other income from activities 211,912 - 211,912 177,403

470,104 - 470,104 392,212

4. INVESTMENT INCOME

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2015£

2015£

2015£

2014£

Investment income 13,842 - 13,842 23,762Pension income 11,000 - 11,000 -

24,842 - 24,842 23,762

Page 32




5. INCOMING RESOURCES FROM CHARITABLE ACTIVITIES

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2015£

2015£

2015£

2014£

Trust's educational operations - 26,172,577 26,172,577 15,664,790

FUNDING FOR TRUST'S EDUCATIONAL OPERATIONS

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2015£

2015£

2015£

2014£

General Annual Grant (GAG) - 17,290,680 17,290,680 12,016,195SEN funding - 534,255 534,255 387,375Start-up grants - 636,334 636,334 263,440Capital grants - 4,181,255 4,181,255 960,276Other DfE / EFA revenue grants - 2,094,781 2,094,781 1,459,092Bursary funding for 6th form students - 26,298 26,298 14,394Graduate training programme - 366,954 366,954 -Pupil premium - 1,042,020 1,042,020 564,018

- 26,172,577 26,172,577 15,664,790

6. OTHER INCOMING RESOURCES FROM EDUCATIONAL OPERATIONS

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2015£

2015£

2015£

2014£

Contributions towards school trips 201,281 - 201,281 184,435Contributions towards clubs and

educational activities 374,815 - 374,815 373,720Other incoming resources 1,245,354 - 1,245,354 413,190

1,821,450 - 1,821,450 971,345

Page 33




7. RESOURCES EXPENDED

Staff costs Non Pay Expenditure Total TotalPremises Other costs

2015£

2015£

2015£

2015£

2014£

Trust's educationaloperations - direct costs 15,127,981 - 3,280,585 18,408,566 11,888,665

Trust's educationaloperations - support costs 3,264,590 1,288,290 1,694,062 6,246,942 4,274,321

Charitable activities 18,392,571 1,288,290 4,974,647 24,655,508 16,162,986

Governance (note 10) - - 63,501 63,501 38,054

18,392,571 1,288,290 5,038,148 24,719,009 16,201,040

8. DIRECT COSTS

Total2015

Total2014

£ £

Pension income - 38,000Educational supplies 1,114,619 686,671Educational visits 392,596 422,391Examination fees 458,139 242,781Staff development and training 144,005 101,751Technology costs 767,285 293,859Travel and subsistence 138,176 56,213Graduate training programme 366,954 -Wages and salaries 14,648,792 9,946,999Pension cost 378,000 100,000

18,408,566 11,888,665

Page 34




9. SUPPORT COSTS

Total2015

Total2014

£ £

Recruitment and support 124,069 81,987Maintenance 452,841 219,862Cleaning 111,551 68,493Rent and rates 99,216 75,214Energy 413,679 359,342Water and sewerage 87,103 69,997Insurance 269,347 176,589Catering 307,208 269,329Other support costs 510,552 285,812Loss on disposal - 1,400Wages and salaries 3,264,589 2,220,132Depreciation 606,787 446,164

6,246,942 4,274,321

10. GOVERNANCE COSTS

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2015£

2015£

2015£

2014£

Legal and professional fees - 63,501 63,501 32,089Support costs - - - 5,896Trustees expenses reimbursed - - - 69

- 63,501 63,501 38,054

11. NET INCOMING / (OUTGOING) RESOURCES

This is stated after charging:

2015 2014 £ £

Depreciation of tangible fixed assets:- owned by the charity 606,787 446,165

Auditors' remuneration 15,000 11,000Auditors' remuneration - non-audit 3,510 3,200Operating lease rentals:

- other operating leases 21,443 21,871

Page 35




12. STAFF

a. Staff costs

Staff costs were as follows:

2015 2014 £ £

Wages and salaries 17,422,892 11,740,450Other pension costs (note 31) 378,000 100,000

17,800,892 11,840,450Supply teacher costs 490,490 426,681Compensation payments 101,189 22,750

18,392,571 12,289,881

b. Staff severance payments

Included in teaching staff costs are non-statutory/non-contractual severance payments totalling £101,189(2014: £22,750). Five of the non-statutory/non-contractual payments exceeded £5,000 individually, andthese were £30,000, £13,500, £9,000, £7,500, £7,102 and £7,000.

c. Staff numbers

The average number of persons employed by the trust during the year expressed as full time equivalentswas as follows:

2015 2014 No. No.

Teachers 316 220Administration and support 147 65Management 40 30

503 315

d. Higher paid staff

The number of employees whose emoluments fell within the following bands was:

2015 2014 No. No.

In the band £60,001 - £70,000 3 2In the band £70,001 - £80,000 5 3In the band £80,001 - £90,000 1 0In the band £100,001 - £110,000 1 1

All the above employees participated in the Teachers' Pension Scheme or Local Government PensionScheme.

Page 36




Wages and salaries breakdown

2015 £

2014 £

Wages and salaries 14,265,576 9,616,653Social security costs 1,016,051 703,986Pension costs 2,141,265 1,419,811

Total 17,422,892 11,740,450

13. CENTRAL SERVICES

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

Human resources

Financial services

Educational support services

Premises

Audit

Information, Communication, Technology

The trust charges for these services based on use by the individual schools.

The actual amounts charged during the year were as follows:

2015 £

Swavesey Village College 323,290Nene Park Academy 322,886North Cambridge Academy 186,899West Town Primary Academy 138,096Sawtry Village Academy 45,000Stamford Welland Academy 167,129

Total1,183,300

Page 37




14. TRUSTEES' REMUNERATION AND EXPENSES

The Executive Principal received remuneration in respect of services they provide undertaking the roleof Executive Principal, and not in respect of their services as trustee. Other trustees did not receive anypayments, other than expenses, from the Trust in respect of their role as trustees. The value of trustees'remuneration fell within the following bands:

2015

Remuneration£'000

2015Pension

contributions£'000

2014

Remuneration£'000

2014Pension

contributions£'000

M Woods (Executive Principal) 100-105 10-15 100-105 10-15

During the year ended 31 August 2015, trustees were reimbursed no expenses (2014 - £69).

15. TRUSTEES' AND OFFICERS' INSURANCE

In accordance with normal commercial practice the trust is in the process of purchasing insurance toprotect trustees and officers from claims arising from negligent acts, errors or omissions occurring whilston trust business.

16. OTHER FINANCE INCOME

2015 2014 £ £

Expected return on pension scheme assets 483,000 235,000Interest on pension scheme liabilities (472,000) (273,000)

11,000 (38,000)

Page 38




17. TANGIBLE FIXED ASSETS

Freeholdproperty

Long termLeasehold

PropertyMotor

vehiclesFixtures

and fittingsComputer

equipment Total£ £ £ £ £ £

Cost

At 1 September 2014 9,357,755 - 938 298,614 636,828 10,294,135Additions 12,639,869 7,611,576 3,041 37,983 171,212 20,463,681

At 31 August 2015 21,997,624 7,611,576 3,979 336,597 808,040 30,757,816

Depreciation

At 1 September 2014 746,442 - 563 68,437 622,013 1,437,455Charge for the year 209,981 200,709 3,228 56,831 136,038 606,787

At 31 August 2015 956,423 200,709 3,791 125,268 758,051 2,044,242

Net book value

At 31 August 2015 21,041,201 7,410,867 188 211,329 49,989 28,713,574

At 31 August 2014 8,611,313 - 375 230,177 14,815 8,856,680

Included in freehold property is freehold land of £3,604,762 (2014 - £1,661,154) and assets under thecourse of construction of £779,695 (2014 - £476,970) which are not depreciated.

18. INVESTMENT PROPERTY

Freeholdinvestment

property£

Valuation

At 1 September 2014 -Additions at fair value 350,000

At 31 August 2015 350,000

The 2015 valuations were made by the trustees after taking professional advice, on an open marketvalue for existing use basis.

The addition in the year represents the fair value of a property at North Cambridge Academy that wastransferred to the trust for £nil consideration (see note 2).

Page 39




19. FIXED ASSET INVESTMENTS

Shares ingroup

undertakings£

Cost

At 1 September 2014 -Additions 1

At 31 August 2015 1

Subsidiary undertakings

The following were subsidiary undertakings of the company:

Name Holding

CMAT Educational Services Limited 100%Sawtry Multitask Software Training Limited 100%

CMAT Educational Services Limited was dormant during the period. Sawtry Multitask Software TrainingLimited did trade but the activities were immaterial, at approximately £7,000.

20. STOCKS

2015 2014 £ £

Clothing/uniform 70,423 50,476

21. DEBTORS

2015 2014 £ £

Trade debtors 642,858 238,863VAT recoverableOther debtors

197,4624,568

91,779-

Prepayments and accrued income 1,148,130 400,289

1,993,018 730,931

Page 40




22. CREDITORS:Amounts falling due within one year

2015 2014 £ £

Other loans 9,883 -Trade creditors 1,110,118 298,007Amounts owed to group undertakings 1 -Other taxation and social security 357,031 220,702Other creditors 335,893 284,008Accruals and deferred income 1,369,690 353,626

3,182,616 1,156,343

£Deferred income

Deferred income at 1 September 2014 219,881Resources deferred during the year 523,344Amounts released from previous years (219,881)

Deferred income at 31 August 2015 523,344

At the balance sheet date the trust was holdings funds received in advance of the 2015/2016 financialyear in respect of grants received, rates and student deposits.

23. CREDITORS:Amounts falling due after more than one year

2015 2014 £ £

Other loans 68,797 -

Included in other loans is a 0% interest salix loan. The loan is repayable evenly over eight years byinstallments paid every six months. The installments commenced March 2015.

Page 41




24. STATEMENT OF FUNDS

BroughtForward

Incomingresources

ResourcesExpended

Transfersin/out

Gains/(Losses)

CarriedForward

£ £ £ £ £ £

Unrestrictedfunds

General funds 1,290,992 2,316,396 (1,507,673) (75,344) - 2,024,371

Restricted funds

General AnnualGrant (GAG) 120,333 17,290,680 (16,536,013) (875,000) - -

SEN funding - 534,255 (534,255) - - -Start-up grants - 636,334 (616,259) - - 20,075Sixth form funding - 26,298 (26,298) - - -Pupil premium - 1,042,020 (1,042,020) - - -Other DfE/EFA

revenue grants - 2,036,033 (2,036,033) - - -Graduate training

programme - 481,387 (366,954) - - 114,433Funds transferred

on joining thetrust - 554,717 (204,717) - - 350,000

Pension reserve (3,193,000) (798,000) (1,242,000) 875,000 (177,000) (4,535,000)

(3,072,667) 21,803,724 (22,604,549) - (177,000) (4,050,492)

Restricted fixed asset funds

Fixed asset fund 8,856,679 16,049,331 (606,787) 4,414,351 - 28,713,574DfE/EFA capital

fund 591,789 4,240,003 - (4,339,007) - 492,785Other capital grants - 46,952 - - - 46,952

9,448,468 20,336,286 (606,787) 75,344 - 29,253,311

Total restrictedfunds 6,375,801 42,140,010 (23,211,336) 75,344 (177,000) 25,202,819

Total of funds 7,666,793 44,456,406 (24,719,009) - (177,000) 27,227,190

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

Unrestricted reserves relate to unrestricted income to be used to support the trust's objectives andeducational services.

The restricted general funds related to the trust's development and operational activities.

The restricted pension reserve represents the LGPS obligation to the employees of the trust.

Page 42




24. STATEMENT OF FUNDS (continued)

The restricted fixed asset fund represents the tangible fixed assets of the trust. The DfE/EFA capital fundrepresents unspent capital funds at the 31 August 2015.

The transfer between the DfE/EFA capital fund and fixed asset fund represents the acquisition oftangible fixed assets from capital funding.

Under the funding agreement with the Secretary of State, the trust was not subject to a limit on theamount of GAG that it could carry forward at 31 August 2015.

Analysis of academies by fund balance

Fund balances at 31 August 2015 were allocated as follows:

Total£

Swavesey Village College 350,083Nene Park Academy 961,469West Town Primary Academy 232,106North Cambridge Academy (36,772)Sawtry Village Academy 86,299Stamford Welland Academy 421,122Cambridge Meridian Academies Trust 494,572

Total before fixed asset fund and pension reserve 2,508,879

Restricted fixed asset fund 29,253,311Pension reserve (4,535,000)

Total 27,227,190

The following academies are carrying net deficits on their portion of the funds as follows:

Name of academy Amount of deficit£

North Cambridge Academy (36,772)

CMAT took over this failing school which had results in the bottom ten of all schools in England at only20% of pupils leaving with A* to C grades. We have invested in improving pupil outcomes and havealready seen a three- fold increase in results.

The trust is taking the following action to return the academy to surplus:

During Spring 2016 the school will move to a new building which will be more efficient and this willenable us to recover this investment during the next year or so.

Page 43




24. STATEMENT OF FUNDS (continued)

Analysis of academies by cost

Expenditure incurred by each academy during the year was as follows:

Teachingand

educationalsupport

staff costs

Othersupport

staff costsEducational

supplies

Other costsexcludingdepreciatio

n Total£ £ £ £ £

Swavesey Village College 4,334,600 950,007 193,405 774,743 6,252,755Nene Park Academy 3,487,494 781,221 273,352 1,025,408 5,567,475West Town Primary Academy 1,049,255 135,040 31,321 167,254 1,382,870North Cambridge Academy 1,967,840 413,358 251,983 585,215 3,218,396Sawtry Village Academy 1,837,979 453,594 142,439 796,005 3,230,017Stamford Welland Academy 1,450,469 349,164 88,344 751,716 2,639,693Cambridge Meridian Academies

Trust 521,154 560,205 119,906 619,751 1,821,016

14,648,791 3,642,589 1,100,750 4,720,092 24,112,222

25. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestrictedfunds

Restrictedfunds


fundsTotal

fundsTotalfunds

2015£

2015£

2015£

2015£

2014£

Tangible fixed assets - - 28,713,573 28,713,573 8,856,679Fixed asset investments 1 - - 1 -Investment property - 350,000 - 350,000 -Current assets 4,904,378 134,508 911,143 5,950,029 3,159,456Creditors due within one year (2,880,008) - (302,608) (3,182,616) (1,156,342)Creditors due in more than one

year - - (68,797) (68,797) -Provisions for liabilities and

charges - (4,535,000) - (4,535,000) (3,193,000)

2,024,371 (4,050,492) 29,253,311 27,227,190 7,666,793

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26. NET CASH FLOW FROM OPERATING ACTIVITIES

2015 2014£ £

Net incoming resources before revaluations 19,737,397 162,406Returns on investments and servicing of finance (13,842) (23,762)Fair value of gifted tangible fixed assets (16,341,777) -Depreciation of tangible fixed assets 606,787 446,165Deficit on disposal of tangible fixed assets - 1,400Capital grants (4,240,003) (993,681)Increase in stocks (19,947) (2,606)Increase in debtors (1,262,088) (119,729)Increase/(decrease) in creditors 2,016,390 (124,430)Cash transferred in on schools joining the academy trust (480,864) -Defined pension scheme liability transferred on conversion 798,000 766,000FRS 17 adjustments 367,000 138,000

Net cash inflow from operations 1,167,053 249,763

27. ANALYSIS OF CASH FLOWS FOR HEADINGS NETTED IN CASH FLOW STATEMENT

2015 2014 £ £

Returns on investments and servicing of finance

Interest received 13,842 23,762

2015 2014

£ £

Capital expenditure and financial investment

Purchase of tangible fixed assets (4,471,904) (638,117)Capital grants 4,240,003 993,681

Net cash (outflow)/inflow capital expenditure (231,901) 355,564

2015 2014 £ £

Financing

Other new loans 84,552 -Repayment of other loans (5,872) -

Net cash inflow from financing 78,680 -

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28. ANALYSIS OF CHANGES IN NET FUNDS

1September Cash flow

Othernon-cashchanges 31 August

2014 2015£ £ £ £

Cash at bank and in hand: 2,378,049 1,508,538 - 3,886,587

Debt:

Debts due within one year - (9,883) - (9,883)Debts falling due after more than one year - (68,797) - (68,797)

Net funds 2,378,049 1,429,858 - 3,807,907

29. SCHOOLS JOINING THE ACADEMY TRUST

On 1 October 2014 and 1 April 2015 respectively Stamford Welland Academy and Sawtry VillageAcademy joined the trust. All the operations and assets and liabilities were transferred to CambridgeMeridian Academies Trust from CfBT Schools Trust and Sawtry Village College respectively for £nilconsideration.

The transfer has been accounted for using the acquisition method. The assets and liabilities transferredwere valued at their fair value and recognised in the balance sheet under the appropriate headings with acorresponding net amount recognised as net incoming resources in the statement of financial activitiesas voluntary income.

The following table sets out the fair values of the identifiable assets and liabilities transferred and ananalysis of their recognition in the statement of financial activities.

Unrestrictedfunds

£

Restrictedfunds

£


funds£

Totalfunds

£

Tangible fixed assets

- Freehold/leasehold land and buildings - - 15,991,777 15,991,777 - Other tangible fixed assets - - 57,554 57,554

Budget surplus/(deficit) on other school funds - 319,150 - 319,150

LGPS pension surplus/(deficit) - (798,000) - (798,000)

Net assets/(liabilities) - (478,850) 16,049,331 15,570,481

The above net assets include £480,864 that were transferred as cash.

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30. CAPITAL COMMITMENTS

At 31 August 2015 the trust had capital commitments as follows: 2015 2014

£ £

Contracted for but not provided in these financial statements 1,403,214 4,860,000

This is in respect of an extension and refurbishment project at SVC. The works will be funded by capitalgrants and a salix loan.

31. PENSION COMMITMENTS

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

The pension costs are assessed in accordance with the advice of independent qualified actuaries. Thelatest actuarial valuation of the TPS related to the period ended 31 March 2012 and of the LGPS 31March 2013.

Contributions amounting to £324,898 were payable to the scheme at 31 August 2015 (2014 - 197,411)and are included within creditors.

Teachers' Pension Scheme

Introduction

The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed bythe Teachers' Pensions Regulations (2010) and, from 1 April 2014, by the Teachers’ Pension SchemeRegulations 2014. Membership is automatic for full-time teachers in academies and, from 1 January2007, automatic for teachers in part-time employment following appointment or a change of contract,although they are able to opt out.

The TPS is an unfunded scheme and members contribute on a ‘pay as you go’ basis – thesecontributions along with those made by employers are credited to the Exchequer. Retirement and otherpension benefits are paid by public funds provided by Parliament.

Valuation of the Teachers’ Pension Scheme

Not less than every four years the Government Actuary, using normal actuarial principles, conducts aformal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations andEmployer Cost Cap) Directions 2014 published by HM Treasury. The aim of the review is to specify thelevel of future contributions. Actuarial scheme valuations are dependent on assumptions about the valueof future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS wascarried out as at 31 March 2012 and in accordance with the Public Service Pensions (Valuations andEmployer Cost Cap) Directions 2014. The valuation report was published by the Department forEducation on 9 June 2014. The key elements of the valuation and subsequent consultation are:

employer contribution rates set at 16.48% of pensionable pay (including a 0.08% employer

administration charge (currently 14.1%);

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31. PENSION COMMITMENTS (continued)

total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for

service to the effective date of £191,500 million, and notional assets (estimated future

contributions together with the notional investments held at the valuation date) of £176,600 million

giving a notional past service deficit of £14,900 million

an employer cost cap of 10.9% of pensionable pay will be applied to future valuations

the assumed real rate of return is 3.0% in excess of prices and 2.0% in excess of earnings. The

rate of real earnings growth is assumed to be 2.75%. The assumed nominal rate of return is 5.06%

During the year the employer contribution rate was 14.1%. The TPS valuation for 2012 determined anemployer rate of 16.4% from September 2015, which will be payable during the implementation perioduntil the next valuation as at March 2016, whereupon the employer contribution rate is expected to bereassessed and will be payable from 1 April 2019.

The pension costs paid to TPS in the period amounted to £1,266,000 (2014: £912,000).

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

Under the definitions set out in Financial Reporting Standard (FRS 17) Retirement Benefits, the TPS is amulti-employer pension scheme. The trust has accounted for its contributions to the scheme as if it werea defined contribution scheme. The trust has set out above the information available on the scheme.

Local Government Pension Scheme

The LGPS is a funded defined benefit scheme, with assets held in separate trustee-administered funds.The total contribution made for the year ended 31 August 2015 was £1,122,000, of which employer'scontributions totalled £875,000 and employees' contributions totalled £247,000. The agreed contributionrates for future years are 19.1% for employers and a tiered% for employees.

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

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The trust's share of the assets and liabilities in the scheme and the expected rates of return were:

Expectedreturn at Fair value at

Expectedreturn at Fair value at

31 August 31 August 31 August 31 August2015 2015 2014 2014

% £ % £

Equities 3.80 6,879,000 6.30 3,548,000Bonds 3.80 1,352,000 2.90 767,000Property 3.80 817,000 4.50 336,000Cash 3.80 221,000 3.30 144,000

Total market value of assets 9,269,000 4,795,000Present value of scheme liabilities (13,804,000) (7,988,000)

(Deficit)/surplus in the scheme (4,535,000) (3,193,000)

The amounts recognised in the balance sheet are as follows:

2015 2014 £ £

Present value of funded obligations (13,804,000) (7,988,000)Fair value of scheme assets 9,269,000 4,795,000

Net liability (4,535,000) (3,193,000)

The amounts recognised in the statement of financial activities are as follows:

2015 2014 £ £

Current service cost (1,253,000) (608,000)Interest on obligation (472,000) (273,000)Expected return on scheme assets 483,000 235,000

Total (1,242,000) (646,000)

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Movements in the present value of the defined benefit obligation were as follows:

2015 2014 £ £

Opening defined benefit obligation 7,988,000 4,961,000Current service cost 1,253,000 608,000Interest cost 472,000 273,000Contributions by scheme participants 247,000 143,000Actuarial (gains)/losses (171,000) 1,078,000Liabilities assumed in a business combination 4,077,000 965,000Benefits paid (62,000) (40,000)

Closing defined benefit obligation 13,804,000 7,988,000

Movements in the fair value of the trust's share of scheme assets:

2015 2014 £ £

Opening fair value of scheme assets 4,795,000 3,601,000Expected return on assets 483,000 235,000Actuarial gains and (losses) (348,000) 149,000Contributions by employer 875,000 508,000Contributions by employees 247,000 143,000Assets acquired in a business combination 3,279,000 199,000Benefits paid (62,000) (40,000)

9,269,000 4,795,000

The cumulative amount of actuarial gains and losses recognised in the statement of total recognisedgains and losses was £1,442,000 loss (2014 - £1,265,000).

The trust expects to contribute £978,000 to its defined benefit pension scheme in 2016.

The major categories of scheme assets as a percentage of total scheme assets are as follows:

2015 2014

Equities %74.00 %74.00Bonds %15.00 %16.00Property %9.00 %7.00Cash %2.00 %3.00

Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

2015 2014

Discount rate for scheme liabilities %3.80 %3.70Expected return on scheme assets at 31 August %3.80 %5.60Rate of increase in salaries %4.60 %4.50Rate of increase for pensions in payment / inflation %2.70 %2.70

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The current mortality assumptions include sufficient allowance for future improvements in mortality rates.The assumed life expectations on retirement age 65 are:

2015 2014

Retiring todayMales 22.5 22.5 yearsFemales 24.5 24.4 years

Retiring in 20 yearsMales 24.4 24.5 yearsFemales 26.9 26.9 years

Amounts for the current and previous three periods are as follows:

Defined benefit pension schemes

2015 2014 2013 2012 £ £ £ £

Defined benefit obligation (13,804,000) (7,988,000) (4,961,000) (4,162,000)Scheme assets 9,269,000 4,795,000 3,601,000 (2,681,000)

Deficit (4,535,000) (3,193,000) (1,360,000) (6,843,000)

Experience adjustments on schemeliabilities 171,000 (1,078,000) (117,000) (389,000)

Experience adjustments on schemeassets (348,000) 149,000 314,000 (144,000)

32. OPERATING LEASE COMMITMENTS

At 31 August 2015 the trust had annual commitments under non-cancellable operating leases as follows:

2015 2014£ £

Expiry date:

Within 1 year 14,302 2,573Between 2 and 5 years 87,651 19,298

33. MEMBERS' LIABILITY

Each member of the charitable company undertakes to contribute to the assets of the company in theevent of it being wound up while he/she is a member, or within one year after he/she ceases to be amember, such amount as may be required, not exceeding £10 for the debts and liabilities contractedbefore he/she ceases to be a member.

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34. RELATED PARTY TRANSACTIONS

Owing to the nature of the trust's operations and the composition of the board of trustees being drawnfrom local public and private sector organisations, transactions may take place with organisations inwhich a trustee has an interest. All transactions involving such organisations are conducted at arm'slength and in accordance with the trust's financial regulations and normal procurement procedures.

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

35. POST BALANCE SHEET EVENTS

The subsidiary company CMAT Educational Services Limited commenced trading on 1 September 2015,undertaking certain lettings and IT services. Annual income is expected to be approximately £250,000.Annual profits will be gifted to the trust.

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