the griffin schools trust · the griffin schools trust trustees' report for the year ended 31...

Registration number: 7893665

The Griffin Schools Trust (A company limited by guarantee)

Annual Report and Financial Statements

for the Year Ended 31 August 2013

BDO LLP 55 Baker Street London W1U 7EU

The Griffin Schools Trust

Contents

Reference and Administrative Details 1

Trustees' Report 2 to 13

Governance Statement 14 to 15

Statement on Regularity, Propriety and Compliance 16

Statement of Trustees' Responsibilities 17

Independent Auditor's Report on the Financial Statements 18 to 19

Independent Auditor's Assurance Report on Regularity 20 to 22

Statement of Financial Activities incorporating Income and Expenditure Account 23 to 24

Balance Sheet 25

Cash Flow Statement 26

Notes to the Financial Statements 27 to 47


Reference and Administrative Details

Governors and Trustees (Directors)

Principal and Registered Office

Jennifer Bray Liz Lewis Ange Tyler Nick Watkiss Charlotte Foulston (appointed 12 September 2012) Jennie Thomas (appointed 12 September 2012) Teresa Zbyszewska (appointed 15 November 2012) Sarah Galvani (appointed 6 June 2013) Philip Clark (appointed 6 June 2013) Steven Nairn (appointed 6 June 2013) Julie Adams (appointed 6 June 2013)

Ange Tyler

Liz Lewis, CEO Nick Watkiss, Director Jennifer Bray, Director Ange Tyler, Director

4-14 Bameston Road London SE6 3BH

Company Secretary

Senior Management Team

Company Registration 7893665 Number

Auditors

Bankers

Solicitors

BDO LLP 55 Baker Street London W1U 7EU HSBC Croydon Central 9 Wellesley Road Croydon CR9 2AA SGH Martineau One America Square Crosswall London EC3N 2SG

Page 1


Trustees' Report for the Year Ended 31 August 2013

The Trustees present their annual report together with the financial statements and auditors' report of the charitable company for the year ended 31 August 2013.

Discussion on conversion to academy trust During the year, Race Leys Junior School, Perry Wood Primary and Nursery School and Bramford Primary School were converted to academy trust status under the Academies Act 2010 and all the operations assets and liabilities were transferred to The Griffin Schools Trust from the Local Authority for ENil consideration.

The transfers have been accounted for using the acquisition method. The assets and liabilities transferred were valued at their fair value and recognised in the balance sheet under the appropriate headings with a corresponding net amount recognised in the Statement of Financial Activities as voluntary income.

Structure, governance and management

Constitution The Academy Trust, which was incorporated on 29 December 2011 and opened as a Multi Academy on the same date, is a company limited by guarantee and an exempt charity. The charitable company's memorandum and articles of association are the primary governing documents of the Academy Trust ("The Griffin Schools Trust") The company registration number is 7893665.

The governors act as the trustees for the charitable activities of the Academy Trust and are also the directors of the charitable company for the purposes of company law. The charitable company is known as The Griffm Schools Trust.

Details of the trustees who served throughout the year except as noted are included in the Reference and Administrative Details on page 1.

Members' liability

Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up while he/she is a member, or within one year after he/she ceases to be a member, such amount as may be required, not exceeding £1 for the debts and liabilities contracted before he/she ceases to be a member.

Trustees' indemnities Trustees benefit from indemnity insurance purchased at the Academy Trust's expense to cover the liability of the Trustees which by virtue of any rule of law would otherwise attach to them in respect of any negligence, default or breach of trust or breach of duty of which they may be guilty in relation to the Academy Trust, provided that any such insurance shall not extend to any claim arising from any act or omission which the Trustees knew to be a breach of trust or breach of duty or which was committed by the Trustees in reckless disregard to whether it was a breach of trust or breach of duty or not and provided also that any such insurance shall not extend to the costs of any unsuccessful defence to a criminal prosecution brought against the Trustees in their capacity as Directors of the Academy Trust.

Page 2



Principal activities The principal activity of the Academy Trust is to advance for the public benefit education by establishing, maintaining, carrying on, managing and developing schools offering a free education through a broad and balanced curriculum for pupils of different abilities.

The Academy Trust operated the following three academy schools in the reporting period ended 31 August 2013:

1. Race Leys Junior School -Joined 01 September, 2012 2. Perry Wood Primary and Nursery School -Joined 01 December, 2012 3. Bramford Primary School -Joined 01 June, 2013

Method of recruitment and appointment or election of Trustees As set out in the Memorandum and Articles of Association (M&A) for The Griffin Schools Trust, members are appointed in accord with the M&A. When appointing new Directors/Governors, the Board will give consideration to the skills and experience mix of existing Directors/Governors in order to ensure that the Board has the necessary skills to contribute fully to the Multi Academy Trust's (MAT' s) development.

A Local Governing Board (LGB) for each individual school was set up post conversion to undertake the day to day running of the school in line with the agreed Scheme of Delegation. The constitution for these LGBs is also set out in the M&A.

Provided that the MAT maintains a majority of appointed LGB members, LGBs can request to appoint additional elected staff members. These LGB members are recruited via an advertised process and a skills audit and have had a clear and comprehensive training schedule. LGB members are appointed for a four year period, except that this time limit does not apply to the Head teacher/Principal. LGB members can be re-appointed after the four year period subject to the eligibility of the members at the time of re-appointment.

Page 3



Policies and procedures adopted for the induction and training of Trustees The training and induction provided for new School Governors is being developed further at present, with an experienced school governance expert who is contracted by the Trust, supported by highly experienced school improvement staff who work for GST and supplemented by the Governor Training Programme offer of the six LAs in which GST now operates. The Training is intended to enable Governors to support and challenge the work of the school and to demonstrate the Local Governing Body's impact on its progress as part of its leadership. Individual programmes will depend upon governors' existing experience but whole LGB programmes are delivered to ensure consistency and coherence. All LGB members have a tour of the Academy and a chance to meet staff and pupils. They also meet with the school's GST Lead (a school improvement expert who is also a local governor).

Chairs of Governors Forums take place in the Midlands and the South to the same agenda and a governors' newsletter (Griffin Governance) is published every term to share news and good practice and to reinforce the sense of family membership. All LGB members will have, by end March 2014, copies of all the relevant policies, procedures, minutes, accounts, budgets, plans and other documents that they will need to undertake their role. It must be noted that some policies were not in place and this has been discussed with Education Funding Agency (EFA) and rectified as a matter of the utmost urgency.

Director induction has thus far been bespoke and has been undertaken with individuals and small groups according to need. Our founding Directors are all very experienced senior educationists but the larger group is drawn from wider backgrounds to ensure a broad skill set as well as including Chairs of Governors from five schools according to our M&A. We have now drafted plans for corporate governance workshops to be conducted by an experienced provider to ensure all Directors are fully aware of their duties and responsibilities. The working pattern of the Trust Board is designed to mirror that of the LGBs which in itself is matched to the Trust's School Improvement cycle. This provides both synergy and strategic leverage which will become increasingly evident as the Trust matures. So far, we have had only two Board meetings with the extended membership. The latest meeting was on 10 March 2014.

A Directors'/Governors' away day will be organised each year and will include training sessions to keep them updated on relevant developments impacting on their roles and responsibilities as well as strategic planning. The first annual conference for all LGB members within the MAT is scheduled for summer 2014.

Page 4



Organisational structure The Board of Directors meets three times per year to monitor closely the academic progress of previously under-performing schools within the MAT, as required by Ofsted and the Department for Education (DIE). Meanwhile, Progress Boards at each school, led by GST take place three or six times per year and the Chair and another Local Governor attend.

Standard meetings allow for all necessary business to be conducted, including budget setting and monitoring. The Board is the strategic body for the Trust, setting strategic direction and holding senior staff to account for the success of the MAT and the schools within it. It establishes an overall framework for the governance of the MAT and determines membership, terms of reference and procedures of Committees and other groups. It receives reports including policies from its Committees for ratification. It monitors the activities of the Committees through the minutes of their meetings. But most importantly, it thoroughly discusses all reports put to it, challenging assumptions and testing their validity. The Executive Report is written in the same format each time, to allow comparison and track progress more easily (using the same Action Impact Next Steps framework that schools are required to follow),so the Board will scrutinise the report and satisfy itself that the Next Steps are appropriate and achievable in the timeframe allowed. The Board may from time to time establish Working Groups to perform specific tasks over a limited timescale.

The timing of full Directors' meetings sits within a comprehensive schedule of meetings. The Progress Board (meeting to assess academic progress in detail at each individual school) meets first with the report/minutes going to the LGB in the first instance. This report is then annotated by the LGB and comes in final form to the MAT Board of Directors for review. The pattern of meetings for the academic year 2013/2014 is fully set.

There is currenty 1 sub committee of the MAT Board of Directors:

1.The Finance and HR Committee — this will meet at least 3 times a year and is responsible for monitoring, evaluating and reviewing policy and performance in relation to financial management, compliance with reporting and regulatory requirements and reporting, receiving reports from the Responsible Officer/internal audit and drafting the annual budget including setting staffmg levels.

It is understood that a separate Audit committee will be required from 2013/14. Its terms of reference and membership have already been proposed and put forward to the Board on 10 March 2014. Additionally,

2. The ELT (Extended Leadership Team) meets fortnightly to evaluate the Trust's impact on all the schools and to consider the deployment of its resources and monitor the budget. It also plans the sharing of good practice (Give and Get) across the schools and refines the CPD programme for school leaders.

3. GST Heads meet twice termly (6 times per year) to undertake shared training and development, to discuss and influence GST's strategy through its senior staff who will put any proposals to the Board and to share good practice. The Board will identify the need for other committees on an ongoing basis.

The Local Governing Body, according to the scheme of delegation, is responsible for setting general policy, adopting an annual plan and budget, approving the statutory accounts, monitoring the Academy by the use of budgets and other data, and making major decisions about the direction of the Academy, capital expenditure and staff appointments.

Page 5



Risk management The Multi Academy Trust (MAT) needs to strengthen its system of internal financial controls and plans are in train to achieve this without delay.

The Multi Academy Trust (MAT) has adopt a formal risk management process to assess business risks and to implement risk management strategies from 10 March 2014 . This process involves identifying the types of risk the Academy faces, scoring and prioritising the risks in terms of their potential operational and financial impact, assessing the likelihood of occurrence and identifying means of mitigating the risks. A Risk Register has been adopted from 10 March 2014 and will be maintained and reviewed on a regular basis.

Connected organisations, including related party relationships The followings are related Party relationships:

Capital Talent Limited (co reg no 04969221) is a related party as Ms Ange Tyler and Ms Liz Lewis are Directors of the company and also a members of the Board of The Griffin Schools Trust.

Sagacious Associates Limited (co reg no 08323905) is a related party as Mr Nicholas Watkiss is a Director of the company and also a member of the Board of The Griffin Schools Trust.

JTEC (Jenny Thomas Education Consultancy Ltd ) (co reg no 6858623) is a related party as Mrs Jenny Thomas is a Director of the company and also a member of the Board of The Griffin Schools Trust

White Eagle Education Ltd (co reg no. 4342413) is a related party as Teresa Zbyszewska is a Director of the Company and is also a member of the Board of The Griffin Schools Trust.

Page 6



Objectives and activities

Objects and aims The legal objects of the Multi Academy Trust are to advance for the public benefit education in the United Kingdom, in particular by establishing, maintaining, carrying on, managing and developing schools, offering a broad range of curriculum for pupils of different abilities.

In order to fulfil those objects, the Academy Trust has established the following three organisational objectives: • providing the very best education for the most socially disadvantaged in order to improve their life chances • using education to prepare the most socially disadvantaged for careers and contributions to public life, local, national and international • contributing to education system improvement locally and more widely

The Multi Academy Trust embraces government policies that allow the achievement of these aims.

The Multi Academy Trust aims to be the lead strategic education partner for each Academy within the trust, enabling it to remain rooted in its local community whilst growing wider networks through the Trust.

The Trust maintains links with local authorities, sharing resources and maximising value. The Trust sources classroom level support locally through Teaching Schools, the local authorities and other providers, including other sponsors.

Page 7



Objectives, strategies and activities The Trust's overarching vision is Proud Traditions, Wide Horizons and High Achievement.

Our vision is to create a family of outstanding Primary, Secondary schools through academies which are known for elite performance in a wide range of areas but which are neither socially nor academically selective. In accordance with our aims, our schools will actively seek to recruit students from the most deprived wards, neighbourhoods and streets in each location. Characterised by the development of independent thought and learning in the pursuit of excellence, the GST academy schools will set high ambitions and open wide horizons for their students, supported and inspired by staff who have achieved in a range of fields themselves. The schools will also make a significant contribution to social cohesion, welcoming students from many faiths and heritages, celebrating them all but practising none.

Our distinctiveness lies in our combined emphasis on strong pastoral support and extra-curricular programmes with a broad and challenging curriculum. The best, usually long-established, maintained and independent schools exemplify the success of this balanced approach.

Proud Traditions - Each Academy establishes a framework of events, routines, rituals and relationships which make a special community with a strong sense of belonging and mutual responsibility: international and multi-cultural but also rooted in their local history and context. The House system is the foundation of strong pastoral care. Traditionally found in the boarding sector where the basic physical, emotional and social needs of students need to be met in the absence of their parents, the House system offers opportunities for support and peer mentoring beyond that offered by the usual pastoral organisation (centred on behaviour and attendance) in secondary schools.

Wide Horizons - GST Academies look outward and forward, opening new worlds and experiences to students and their families, staff and local partners. They encourage and expect a collective responsibility to the Academy and wider community in terms of service, support and contribution as exemplified by the unusually close relationship between the curriculum and co-curriculum. This widening of horizons will have a practical, long-term outcome; in addition to any existing specialisms, our Academies prepare students who are by definition the most socially disadvantaged to take their full part in civic and public life. Not only will this contribute to social cohesion and give individual students opportunities for leadership but it will enable those least represented in public life to become involved in decision making at local, national and international levels.

High Achievement - We promote synergy between enjoyment and achievement in a broad and challenging curriculum, inspiring pupils to work hard at their play and play hard in their work. High achievement is defined as personal best and can be experienced in music, sport, drama, art or craft as well as areas of academic study. Special attention is given to preparing students to become active citizens, contributing to their communities and playing a part in public and civic life. Our aim is that students from The Griffin Schools Trust Academies, many of whom will be from socially or financially disadvantaged families will be successful and responsible global citizens with real choices.

Public benefit The Academy provides educational services to all children in the local area. The Trustees confirm that they have complied with the duty in Section 4 of the Charities Act 2006 to have due regard to the public benefit guidance provided by the Charity Commission.

Page 8



Achievements and performance After nearly two years of planning, attracting expert colleagues, articulating our proven approach to school improvement and matching the Trust to schools with the help of the DfE Broker Team, The Griffin Schools Trust welcomed its first school, Race Leys Junior School in September 2012.

Throughout the last academic year the Multi Academy Trust (MAT) worked to build Phase 1 of the Trust family with a small group of schools who share our values but know there is much more to do to build and sustain a successful experience for all their pupils.

Race Leys Junior School (Warwickshire), Perry Wood Nursery and Primary School (Worcestershire) and Bramford Primary School (Dudley) joined us respectively in the first, second and third terms of the last school year and a further eight were in transfer and already being supported to improve by the Trust.

Going concern After making appropriate enquiries, the Governing Body has a reasonable expectation that the Academy Trust has adequate resources to continue in operational existence for the foreseeable future. For this reason it has adopted the going concern basis in preparing the fmancial statements. Further details regarding the adoption of the going concern basis can be found in the Statement of Accounting Policies.

Key non-financial performance indicators The Griffin Schools Trust is newly formed and the reporting period ended 31 August 2013 is its first operating year as a Multi Academy Trust. The trustees will develop a list of key financial and performance indicators by 30 April 2014. A number of financial indicators that will be used in the future will assist the trustees in managing the Trusts financial affairs to ensure efficient operation, liquidity and effective use of resources. The Multi Academy Trust as well at individual academy level will operate with a set of targets in relation to its reserves, ensuring the Trust meets its Reserve policy and still be able to manage any unforeseen events. As the Multi Academy Trust grows and as more information about other MATs become available publicly, GST will be better able to benchmark budgets and expenditure against a number of criteria, such as staff costs, property costs per school and per pupil. As funding is based on pupil numbers, this is also a key performance indicator. Currently the schools in the MAT have 14% surplus places which is a strain on the collective budget. This is a key priority for all Heads and for the Trust. As soon as EFA issues are addressed. we intend to proceed with Phase Two of the business plan which will see the MAT grow to 10,000 pupils in no more than twenty schools. The economies of scale offered by the target size are essential to our long term viability and success.

Page 9



Financial review Most of the Trust's income is obtained from the DIE in the form of recurrent and capital grants, the use of which is restricted to particular purposes. The grants received during the period and the associated expenditure is shown as restricted funds in the Statement of Financial Activities.

At the year ended 31 August 2013, the total Fund balances (excluding fixed assets and pension reserves) at individual academies totalled £161,004.

At 31 August 2013 the net book value of fixed assets was £14,910,885 and movements in tangible fixed assets are shown in Note 14 to the financial statements. The assets were used exclusively for providing education and the associated support services to the pupils of the Academy.

The land, buildings and other assets were gifted and right to use granted to the Multi Academy Trust upon conversion. Land and buildings were professionally valued at £14,817,500. Other assets have been included in the financial statements at a best estimate, taking into account purchase price and remaining useful lives.

The balance of the fainter school's budget share (£282,824) was transferred across on conversion and is shown as Restricted General Funds.

The Academy has taken on the deficit in the Local Government Pension Scheme in respect of its non teaching staff transferred on conversion, The deficit is incorporated within the Statement of Financial Activity with details in Note 25 to the financial statements.

Key fmancial policies adopted or reviewed during the year include the Finance Policy which lays out the framework for financial management, including financial responsibilities of the Board, Head Teacher, managers, budget holders and other staff, as well as delegated authority for spending. Other policies reviewed and updated included Charges and Lettings, Asset Management and Insurance.

Trustees have adopted a Responsible Officer Policy/internal audit policy and appointed a Chartered Accountant to undertake a programme of internal checks on the financial controls.

Page 10



Principal risks and uncertainties The principal risks and uncertainties facing the Academy Trust are as follows:

Financial - the Multi Academy Trust and the each individual Academy have considerable reliance on continued Government funding through the EFA. In the last year 22% of the incoming resources were ultimately Government funded and whilst this level is expected to continue, there is no assurance that Government policy or practice will remain the same or that public funding will continue at the same levels or on the same terms. However, if the value of transfers from local Authorities is removed, this income figure represents 97%.

Failures in governance and/or management - the risk in this area arises from potential failure to effectively manage the Multi Academy Trust's finances, internal controls, compliance with regulations and legislation, statutory returns, etc. Questions have been raised by the EFA about the first year's financial management and these are being robustly and rapidly addressed. The Trustees will continue to review practices and will ensure that appropriate measures are in place to mitigate these risks.

Reputational- the continuing success of the Multi Academy Trust is dependent on implementing rapid and sustained educational achievement in its academies and continuing to attract applicants in sufficient numbers by maintaining the highest educational standards. To mitigate this risk Trustees ensure that senior Trust staff are focused on student success and achievement in all the schools and use their work to strengthen each school's leadership and build long -term capacity.

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 Multi Academy Trust is reliant on the quality of its staff. The Trustees will re-align the roles and responsibilities of some of its central staff in direct response to feedback in order to secure ongoing full compliance with the EFA Academies Handbook. Strategic recruitment in and on behalf of the schools is a strength and several strong leadership appointments have been made to very hard to fill posts in the schools with the help of senior Trust staff. Development, retention and succession planning is part of the training given to Heads and the MAT' s HQ will ensure the same practice is adopted.

Fraud and mismanagement of funds - The Multi Academy Trust is acting to address issues raised from the audit. Full plans are in place to include, inter alia, a Responsible Officer to carry out checks on financial systems and records and for internal audit checks as required by the Academy Financial Handbook. All finance staff will receive training to keep them up to date with financial practice requirements and performance management to ensure all EFA standards and requirements are at least met. The Academy will strengthen its risk management process throughout the year by improving the process and securing staff awareness. A risk register (adopted by the Board on 10 March 2014) will be maintained and will be reviewed and updated on a regular basis.

Page 11



Financial and risk management objectives and policies The Trustees have assessed the major risks to which the Multi Academy Trust and the Academies are exposed, in particular those relating to its finances, teaching, facilities and other operational areas. The Trustees adopted 10 March 2014 and see that senior staff implement a number of systems to assess and minimise those risks, including internal controls described elsewhere. Where significant fmancial risk still remains they have ensured they have adequate insurance cover.

The Trustees will examine the MAT' s financial health formally every term, reviewing pedal lance against budgets and overall expenditure by means of update reports at all full Trustees' and Finance Committee meetings in 2013/14. The MAT's Leadership Team will scrutinise management reports monthly, taking action where appropriate and reporting to the Finance Committee between meetings if necessary.

At the year end, the Multi Academy Trust had no significant liabilities arising from trade creditors or debtors where there would be a significant effect on liquidity. The Board of Trustees recognises that the defined benefit scheme deficit (Local Government Pension Scheme), which is set out in Note 25 to the fmancial statements, represents a significant potential liability. However, 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. This guarantee came into force on 18 July 2013.

Reserves policy Our aim is to use the allocated funding each year for the full benefit of our current students.

However we also consider it necessary to carry forward some reserves to:

- Provide sufficient working capital to cover delays between spending and receipt of grants; - To invest in future years' priorities for the children of our schools, for example capital projects; - To have a contingency reserve to cover expenditure required for unforeseen circumstances such as urgent maintenance.

The level of free reserves (total funds less fixed asset and other restricted funds) held at 31 August 2013 was £115,075 which we consider is reasonable to meet the above objectives.

The trustees will keep the reserves policy under review as the Multi Academy Trust develops, and ensure that it continues to conform to the requirements laid down in the Academies Financial Handbook.

Investment policy The Board of Directors are firmly committed to ensuring that all funds under their control are administered in a risk adverse investment strategy. As such the Board do not consider the investment of surplus funds as a primary activity, but rather a requirement for the effective management of the various funds entrusted to the Board.

Due to the nature of the funding cycle, the Individual Academies with the Multi Academy Trust may at times hold large cash balances which may not be required for immediate use.

Description of employee consultation Staff in schools and at Headquarters go through a rigorous consultation process prior to conversion to Academy status and transfer to Griffins School Trust.

Page 12



Plans for future periods The Multi Academy Trust will continue to strive to provide outstanding education and improve the levels of performance of its pupils at all levels. The Multi Academy Trust will continue to aim to attract high quality teachers and support staff in order to deliver its objectives.

The Multi Academy Trust will seek to sponsor additional schools and also allow voluntary convertors to join the Academy Trust. Allowing voluntary schools to join is fundamental to the ethos of the Multi Academy Trust in collaboration and sharing best practice.

The Multi Academy Trust aims to grow the family of schools from three to twelve in the first phase and further growth to twenty schools in the second phase.

Funds held as Custodian Trustee on behalf of others The Multi Academy Trust and its Trustees do not act as the Custodian Trustees of any other Charity.

Auditor 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.

Approved by order of the Board on 10 March 2014 and signed on its behalf by:

Page 13


Governance Statement

Scope of responsibility As trustees, we acknowledge we have overall responsibility for ensuring that The Griffin Schools 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 Governing Body has delegated the day-to-day responsibility to Liz Lewis, as Accounting Officer, for ensuring financial controls conform with the requirements of both propriety and good financial management and in accordance with the requirements and responsibilities assigned to it in the funding agreement between The Griffin Schools Trust and the Secretary of State for Education. They are also responsible for reporting to the Governing Body any material weaknesses or breakdowns in internal control.

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

Meetings Out of a Trustee attended possible Ange Tyler 3 3 Jennifer Bray 3 3 Liz Lewis 3 3 Nick Watkiss 3 3 Charlotte Foulston 3 3 Jennie Thomas 1 3

The purpose of the system of internal control The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk of failure to achieve policies, aims and objectives. It can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an on-going process designed to identify and prioritise the risks to the achievement of academy trust policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically. The system of internal control has not been set up properly in The Griffin Schools Trust for the year ending 31 August 2013 and up to the date of approval of the annual report and financial statements. The board of trustees recognises that The Griffin Schools Trust needs to strengthen its system of internal fmancial controls and plans are in train to achieve this without any delay.

Capacity to handle risk During the year to 31 August 2013 the board of trustees has not 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. A formal process for identifying, evaluating and managing the academy trust's significant risks has not been in place for the year ending 31 August 2013 and up to the date of approval of the annual report and financial statements. The board of trustees has adopted a formal risk management process to assess business risks and to implement risk management strategies with an effective date of 10 March 2014. This process will be regularly reviewed by the board of trustees.

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

Page 14

-

Jennifer Bray Governor ma...trustee

r's C.7


Governance Statement

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

• setting targets to measure financial and other performance; • clearly defined purchasing (asset purchase or capital investment) guidelines; • delegation of authority and segregation of duties; • identification and management of risks. The Governing Body has considered the need for a specific internal audit function and has decided not to appoint an internal auditor. However the trustees will appoint Kah Tan, as responsible officer (RO) which will be effective from 10 March 2014.

The RO's role includes giving advice on financial matters and performing a range of checks on the academy trust's fmancial systems. On a quarterly basis, the RO will report to the Governing Body on the operation of the systems of control and on the discharge of the Governing Body's financial responsibilities.

Review of Effectiveness As accounting officer, Liz Lewis 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 auditor; • the work of the executive managers within the academy trust who have responsibility for the development and maintenance of the internal control framework.

The accounting officer has been advised of the implications of the results of reviews of the system of internal control by the external accountants and the EFA and a plan to address weaknesses and ensure continuous improvement of the system is in place.

Approved by order of the members of the Governing Body on 10 March 2014 and signed on its behalf by:

Page 15


Statement on Regularity, Propriety and Compliance

As accounting officer of The Griffin Schools Trust I have considered my responsibility to notify the academy trust Governing Body and the Education Funding Agency of material irregularity, impropriety and non-compliance with EFA terms and conditions of funding, under the funding agreement in place between the academy trust and the Secretary of State. As part of my consideration I have had due regard to the requirements of the Academies Financial Handbook. I confirm that I and the academy trust Governing Body are now able to identify any material irregular or improper use of funds by the academy trust, or material non-compliance with the terms and conditions of funding under the academy trust's funding agreement and the Academies Financial Handbook. I confirm that any instances of material irregularity, impropriety or funding non-compliance discovered to date have been notified to the governing body and the EFA or, if occurring after the date of this statement, will be notified to the governing body and the EFA.

Page 16


Statement of Trustees' Responsibilities

The Trustees (who are the directors of the charitable company for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with the Annual Accounts Direction issued by the Education Funding Agency, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to: • select suitable accounting policies and apply them consistently; • observe the methods and principles in the Charities SORP; • make judgments and estimates that are reasonable and prudent; • state whether applicable UK Accounting Standards have been followed, subject to any material departures

disclosed and explained in the financial statements; and • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the

charitable company will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the fmancial position of the charitable company and enable them to ensure that the financial statements 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 grants received from the EFA/DfE have been applied for the purposes intended. The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of fmancial statements may differ from legislation in other jurisdictions.

Approved by order of the members of the Board on 10 March 2014 and signed on its behalf by:

Page 17


Independent Auditor's Report on the Financial Statements to the members of The Griffin Schools Trust

We have audited the financial statements of The Griffin Schools Trust ("the Academy") for the year ended 31 August 2013, which comprise the Statement of Financial Activities incorporating Income and Expenditure Account, Balance Sheet, Cash Flow Statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and the Academies Accounts Direction 2013 issued by the Education Funding Agency ("the EFA"). This report is made solely to the Academy's trustees, 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 trustees 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 Academy, the Academy's members as a body and the Academy's trustees as a body for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of governors and auditors As explained more fully in the Statement of Trustees' Responsibilities (set out on page 17), the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. We have been appointed as auditor under the Companies Act 2006 and report in accordance with that Act. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's (APB'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's website at www.frc.org.uk/auditscopeukprivate.

Opinion on the financial statements In our opinion the financial statements: • give a true and fair view of the state of the Academy's affairs as at 31 August 2013 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 the Annual Accounts Direction issued by the Education Funding Agency; and • have been prepared in accordance with the requirements of the Companies Act 2006 and the Academies

Accounts Direction 2013 issued by the EFA.

Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

Matters on which we are required to report by exception We have nothing to report in respect of the following matters where 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 financial statements are not in agreement with the accounting records and returns; or • certain disclosures of trustees' remuneration specified by law are not made; or • any information or explanation to which we are entitled has not been afforded to us.

Page 18


Independent Auditor's Report on the Financial Statements to the members of The Griffin Schools Trust

Karen Thompson FCA (Senior Statutory Auditor) For and on behalf of BDO LLP, Statutory Auditor

55 Baker Street London W1U 7EU

Date. / Art c.v-c, /

Page 19


Independent Auditor's Assurance Report on Regularity to The Griffin Schools Trust and the Education Funding Agency

In accordance with the terms of our engagement letter dated 19 September 2013 and further to the requirements of the Education Funding Agency (EFA) as included in the Academies Accounts Direction 2013, we have carried out an engagement to obtain limited assurance about whether the expenditure disbursed and income received by the Academy during the year to 31 August 2013 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 the Griffin School Trust and to the EFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we may state to the Academy and to the EFA those matters we are required to state in a report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Academy and the EFA, for our work, for this report, or for the conclusion we have formed.

Respective responsibilities of the Governing Body's accounting officer and the reporting accountant The accounting officer is responsible, under the requirements of the Governing Body's funding agreement with the Secretary of State for Education dated 30 August 2012 and the Academies Financial Handbook extant from 1 Sepember 2012, 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 2013. 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 year to 31 August 2013 have not been applied to purposes intended 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 2013 issued by the EFA. We performed a limited assurance engagement as defmed 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's income and expenditure.

The work undertaken to draw our conclusion includes an assessment of the level of risk associated with the specific categories of income and expenditure and the potential for irregularities to be identified.

Page 20



Conclusion In the course of our work, except for the matters listed below nothing has come to our attention which suggests that in all material respects the expenditure disbursed and income received during the year to 31 August 2013 has not been applied to purposes intended by Parliament and the financial transactions do not conform to the authorities which govern them.

We noted the following matters which were not in line with the requirements of The Academies Financial Handbook extant during the year to 31 August 2013 ("the Academies Financial Handbook"):

• No evidence is available to demonstrate that a process was in place for independent checking of financial controls, systems, transactions and risks during the year under review.

• No evidence is available to demonstrate that the Trustees formally assessed the risks arising from the Trust's operations, nor that risk registers were prepared and reviewed by Trustees during the year under review.

• A fmancial budget for the Trust for 2013/14 had not been prepared or approved by the Trustees.

• During the year monthly management accounts have not been prepared which include income and expenditure reports on an accruals basis for the full activities of the Academy Trust.

• The Finance Committee did not meet during the year under review.

• During our testing we noted six contracts which were awarded without evidence of a competitive tendering process taking place.

• No evidence is available to demonstrate that a contingency and business continuity plan was in place across all activities of the Academy Trust during the year under review.

• The Academy Trust entered into a 5 year operating lease for photocopier equipment on 21 June 2013 without obtaining the necessary permission to do so from the Secretary of State.

• No evidence is available to demonstrate that a register of business interests was in place during the year under review.

• These fmancial statements were not filed with the EFA by the filing deadline of 31 December 2013.

In addition, during the course of our work, we noted the following exception to the requirements of the Charities Act 2011:

• An arrangement with a connected party of one of the trustees was approved by the Board in June 2013. At the time the arrangement was approved, 3 out of 6 trustees were connected to companies providing services to the Trust, and were therefore not a minority of the members of the Board at the point the arrangement was approved.

Page 21



;4bC2') i I

Karen Thompson FCA For and on behalf of BDO LLP, Chartered Accountants

55 Baker Street London W1U 7EU

Date. 1/ / 474

Page 22


Statement of Financial Activities for the Year Ended 31 August 2013 (Including Income and Expenditure Account and Statement of Total Recognised Gains

and Losses)

Restricted Restricted Unrestricted General Fixed Asset Total Total

Funds Funds Funds 2013 2012 Note £ £ £ £ £

Incoming resources

Incoming resources from generated funds: Voluntary income Transfer on conversion 3 - (567,176) 14,922,610 14,355,434 Other voluntary income 3 17,549 17,549 Activities for generating funds 4 57,670 57,670 Investment income 5 22 22

Incoming resources from charitable activities: Funding for the Academy's educational operations 6 3,701,562 3,701,562 65,000

Total incoming resources 75,241 3,134,386 14,922,610 18,132,237 65,000

Resources expended

Charitable activities: Academy's educational operations 3,669,584 26,012 3,695,596 11,828

Governance costs 74,954 74,954 13,338

Total resources expended 7 3,744,538 26,012 3,770,550 25,166

Net incoming/(outgoing) resources before transfers 75,241 (610,152) 14,896,598 14,361,687 39,834

Net income/(expenditure) for the year 75,241 (610,152) 14,896,598 14,361,687 39,834

Other recognised gains and losses Actuarial losses on defined benefit pension schemes 25 (55,000) (55,000)

Net movement in funds 75,241 (665,152) 14,896,598 14,306,687 39,834

Reconciliation of funds

Funds brought forward at 1 September 2012 39,834 39,834

Funds/(deficit) carried forward at 31 August 2013 115,075 (665,152) 14,896,598 14,346,521 39,834

Page 23


Statement of Financial Activities for the Year Ended 31 August 2013 (Including Income and Expenditure Account and Statement of Total Recognised Gains

and Losses)

All of the Academy's activities derive from continuing operations during the above two periods. A Statement of Total Recognised Gains and Losses is not required as all gains and losses are included in the Statement of Financial Activities.

Page 24


(Registration number: 7893665) Balance Sheet as at 31 August 2013

Fixed assets

Note

31 August 2013

31 August 2012

Tangible assets 14 14,910,885

Current assets Debtors 15 281,575 4,993 Cash at bank and in hand 633,568 64,328

915,143 69,321

Creditors: Amounts falling due within one year 16 (574,507) (29,487)

Net current assets 340,636 39,834

Total assets less current liabilities 15,251,521 39,834

Net assets excluding pension liability 15,251,521 39,834

Pension scheme liability 25 (905,000)

Net assets including pension liability 14,346,521 39,834

Funds of the Academy:

Restricted funds Restricted general fund - general fund 239,848 Restricted pension fund - general fund (905,000) Restricted fixed assets 14,896,598

14,231,446

Unrestricted funds Unrestricted general fund 115,075 39,834

Total funds 14,346,521 39,834

The financial statements on pages 23 to 47 were approved by the Trustees, and authorised for issue on 10 March 2014 and signed on their behalf bx;

Page 25


Cash Flow Statement for the Year Ended 31 August 2013

Note

31 August 2013

31 August 2012

Net cash inflow from operating activities 20 300,681 64,328 Cash transferred on conversion to an academy trust 282,824

Returns on investments and servicing of fmance 21 22

Capital expenditure and financial investment 22 (14,287)

Increase in cash in the year 23 569,240 64,328

Reconciliation of net cash flow to movement in net funds

Increase in cash in the year 569,240 64,328 Net funds at 1 September 2012 64,328

Net funds at 31 August 2013 633,568 64,328

All of the cash flows are derived from continuing operations during the above two periods.

Page 26


Notes to the Financial Statements for the Year Ended 31 August 2013

1 Accounting policies

Basis of preparation The financial statements have been prepared under the historical cost convention in accordance with applicable United Kingdom Accounting Standards, the Charity Commission 'Statement of Recommended Practice: Accounting and Reporting by Charities' ('SORP 2005'), the Annual Accounts Direction issued by the Education Funding Agency and the Companies Act 2006. A summary of the principal accounting policies, which have been applied consistently, except where noted, is set out below.

Conversion to an academy trust For each school joining the MAT, the conversion from a state maintained school to an academy involved the transfer of identifiable assets and liabilities and the operation of the school for consideration and has been accounted for under the acquisition accounting method.

The assets and liabilities transferred on conversion from a state maintained school to an academy have been valued at their fair value being a reasonable estimate of the current market value that the trustees would expect to pay in an open market for an equivalent item. Their fair value is in accordance with the accounting policies set out for The Griffin Schools Trust. The amounts have been recognised under the appropriate balance sheet categories, with a corresponding amount recognised in voluntary income as net income/net expenditure in the Statement of Financial Activities and analysed under restricted general funds and restricted fixed asset funds. Further details of the transaction are set out in the notes.

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

Incoming resources All incoming resources are recognised when the Multi Academy Trust has entitlement to the funds, certainty of receipt and the amount can be measured with sufficient reliability

Grants receivable 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 entitlement of receipt its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

General Annual Grant is recognised in full in the year for which it is receivable and any unspent amount 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 on which they are expended. Unspent amounts of capital grant are reflected in the balance in the restricted fixed asset fund.

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

Page 27



1 Accounting policies (continued)

Other income

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

Resources expended All expenditure is recognised in the period in which a liability is incurred and has been classified under headings that aggregate all costs related to that category. Where costs cannot be directly attributed to 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 on the portion of the asset's use. Other support costs are allocated based on the spread of staff costs.

All resources expended are inclusive of irrecoverable VAT.

Cost of generating funds These are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

Charitable activities These are costs incurred on the Academy Trust's educational operations.

Governance costs

These include the costs attributable to the Academy Trust's compliance with constitutional and statutory requirements, including audit, strategic management and Governor's meetings and reimbursed expenses.

Tangible fixed assets Assets costing £1,000 or more are capitalised as tangible fixed assets and are carried at cost, net of depreciation and any provision for impairment. Where tangible fixed assets have been acquired with the aid of specific grants, either from the government or from the private sector, they are included in the Balance Sheet at cost and depreciated over their expected useful economic life. 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 such assets is charged to the restricted fixed asset fund in the Statement of Financial Activities so as to reduce the fund over the useful economic life of the related asset on a basis consistent with the Academy Trust's depreciation policy.

Depreciation is provided on all tangible fixed assets other than freehold land, at rates calculated to write off the cost of each asset over its expected useful lives, per the table below. Depreciation on the buildings and leasehold land is not charged on the year of transfer from Local Authority.

Assets in the course of construction are included at cost. Depreciation on these assets is not charged until they are brought into use.

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.

Page 28




Asset class Long leasehold buildings Long leasehold land Fixtures, fittings and equipment ICT equipment

Depreciation method and rate 2% Straight line 2% Straight line 25% Straight line 33.33% Straight line

Leased assets Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the statement of fmancial activities on a straight line basis over the lease term.

Taxation 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.

Pension benefits 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, are contracted out of the State Earnings-Related Pension Scheme ('SERPS'), and the assets are held separately from those of the Academy Trust. The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees' working lives with the Academy Trust in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quinquennial valuations using a prospective benefit method. As stated in the notes to the financial statements, the TPS is a multi-employer scheme and the Academy Trust is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. The TPS is therefore treated as a defined contribution scheme and the contributions recognised as they are paid each year.

The LGPS is a funded 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 method and discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent term and currency to the liabilities. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The amounts charged to operating surplus are the current service costs and gains and losses on settlements and curtailments. They are included as part of staff costs. Past service costs are recognised immediately in the Statement of Financial Activities if the benefits have vested. If the benefits have not vested immediately, the costs are recognised over the period until vesting occurs. The expected return on assets and the interest cost are shown as a net finance amount of other finance costs or credits adjacent to interest. Actuarial gains and losses are recognised immediately in other gains and losses.

Page 29




Fund accounting 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 the Education Funding Agency/Department for Education/sponsor/other 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 the Education Funding Agency/Department for Education.

2 General Annual Grant (GAG)

Under the funding agreement with the Secretary of State some academies within the Academy Trust were subject to limits at 31 August 2013 on the amount of GAG that could be carried forward from one year to the next. An amount equal to 12% of GAG could be carried forward, of which up to 2% could be used for general recurrent purposes, with any balance being available for premises/capital purposes.

No academies within the trust exceeded the limits during the year ended 31 August 2013.

3 Voluntary income

Transfer on conversion

Other voluntary income Other Donations

Total voluntary income

Unrestricted funds

17,549

Restricted Restricted fixed asset

funds funds

(567,176) 14,922,610

Total 2013

14,355,434

17,549

17,549 (567,176) 14,922,610 14,372,983

4 Activities for generating funds

Unrestricted Total funds 2013

Hire of facilities 7,252 7,252 Catering income 13,928 13,928 Recharges and reimbursements 29,253 29,253 Other sales 7,237 7,237

57,670 57,670

Page 30



5 Investment income

Unrestricted Total funds 2013

Short term deposits 22 22

6 Funding for Academy's educational operations

School

Restricted funds

Total 2013

Total 31 August

2012

DfE/EFA capital grants Perry Wood Primary and Nursery

Dfe Capital Grant School 12,739 12,739

Other government grants

Race Leys Government Annual Grant Junior School 908,449 908,449

Perry Wood Primary and Nursery

Government Annual Grant School 1,369,688 1,369,688 Bramford Primary

Government Annual Grant School 489,925 489,925 Central

Start up Grant Services 893,750 893,750 65,000 Central

Government Annual Grant Services 27,011 27,011

3,688,823 3,688,823 65,000

Total grants 3,701,562 3,701,562 65,000

Page 31



7 Resources expended

Staff costs £

Premises £

Other costs £

Total 2013

£

Total 31 August

2012 £

Academy's educational operations Direct costs 1,928,231 26,012 1,103,224 3,057,467 11,828 Allocated support costs 318,627 202,022 117,480 638,129

2,246,858 228,034 1,220,704 3,695,596 11,828

Governance costs including allocated support costs 74,954 74,954 13,338

2,246,858 228,034 1,295,658 3,770,550 25,166

Page 32



7 Resources expended (continued)

Net incoming/outgoing resources for the year include: 31 August 31 August

2013 2012

Fees payable to auditor - audit (excluding VAT) 21,000

8 Charitable activities - Academy's educational operations Restricted Total

Restricted fixed asset Total 31 August funds funds 2013 2012

£ £ £ £

Direct costs Teaching and educational support staff costs 1,928,231 1,928,231 Depreciation 26,012 26,012 Educational supplies (5,237) (5,237) Staff development 12,989 12,989 Educational consultancy 74,471 - 74,471 Other direct costs 1,021,001 - 1,021,001 11,828

3,031,455 26,012 3,057,467 11,828

Allocated support costs Support staff costs 318,627 318,627 Maintenance of premises and equipment 54,825 54,825 Cleaning 48,964 48,964 Rent, rates and utilities 75,152 75,152 Insurance 23,081 23,081 Security and transport 1,322 1,322 Catering 72,770 72,770 Bank interest and charges 945 945 Professional fees 35,118 35,118 Other support costs 7,325 7,325

638,129 638,129

3,669,584 26,012 3,695,596 11,828

Page 33



9 Governance costs

Restricted funds

Total 2013

Total 31 August

2012

Legal and professional fees 48,416 48,416 13,338

Auditors remuneration Audit of financial statements 21,000 21,000

Support costs 1,141 1,141

Governors' reimbursed expenses 4,397 4,397

74,954 74,954 13,338

10 Staff costs

2013

Staff costs during the year were: Wages and salaries 1,841,470 Social security costs 108,090 Pension costs 247,713 Supply teacher costs 49,585

2,246,858

The average number of persons (including senior management team) employed by the Academy during the year expressed as full time equivalents was as follows:

31 August 31 August 2013 2012 No No

Charitable Activities Teachers 54 Administration and support 127 Management 3

184

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

Page 34



10 Staff costs (continued) 31 August

2013 No

£60,001 - £70,000

1 (2012 - 0) of the above employees participated in the Teachers' Pension Scheme. During the year ended 31 August 2013, pension contributions for these staff amounted to £ 8,640 (2012 - £ Nil). 0 (2012 - 0) of the above employees participated in the Local Government Pension Scheme, pension contributions amounted to £ Nil (2012- £ Nil).

11 Central services The Trust has provided the following central services to its academies during the year: - human resources; - fmancial services; - legal services; - educational support services; or - others as arising.

The Trust charges for these services on the following basis: - flat percentage of income (3.5% - 5%)

The actual amounts charged during the year were as follows:

31 August 2013

Race Leys Junior School 44,152 Perry Wood Primary and Nursery School 55,585 Bramford Primary School 17,913

117,650

12 Trustees' remuneration and expenses The CEO and staff trustees receive no direct remuneration for their service as CEO and staff directors as they are not considered to be employees of the Trust, instead working on a contractor basis. These services are therefore paid for via arrangements with the companies that supply them (see note 26 for more details). Other trustees did not receive any payments, other than expenses, from the Academy in respect of their role as trustees.

During the year ended 31 August 2013, travel and expenses totalling £ 4,397 (2012 - £ Nil) were reimbursed to 4 trustees (2012 - 0). Related party transactions involving the trustees are set out in note 26.

Page 35



13 Trustees' and officers' insurance

In accordance with normal commercial practice the Academy has purchased insurance to protect trustees and officers from claims arising from negligent acts, errors or omissions occurring whilst on Academy business. The insurance provides cover up to £50,000 on any one claim and the cost for the year ended 31 August 2013 was £8,628 (2012 - £Ni1).

The cost of this insurance is included in the total insurance cost.

14 Tangible fixed assets

Cost

Leasehold land and buildings

Furniture and equipment

Computer equipment Total

Additions 12,837 1,450 - 14,287 Transfers 14,817,500 80,749 24,361 14,922,610

At 31 August 2013 14,830,337 82,199 24,361 14,936,897

Depreciation Charge for the year 20,879 5,133 26,012

At 31 August 2013 20,879 5,133 26,012

Net book value

At 31 August 2013 14,830,337 61,320 19,228 14,910,885

15 Debtors

31 August 31 August 2013 2012

Trade debtors 121,380 Prepayments 65,046 Accrued grant and other income 78,391 Other debtors 16,758 4,993

281,575 4,993

Page 36



16 Creditors: amounts falling due within one year 31 August

2013 31 August

2012

Trade creditors 355,815 29,487 Other creditors 85,533 Pension scheme creditor 10,936 Accruals 122,223

574,507 29,487

17 Funds

Restricted general funds

Balance at 1 September

2012 £

Incoming resources

£

Resources expended

£

Gains, losses and transfers

£

Balance at 31 August

2013 £

Restricted Fund 3,701,562 (3,744,538) 282,824 239,848

Restricted fixed asset funds Restricted Fixed Asset Fund (26,012) 14,922,610 14,896,598

Restricted pension funds Restricted Pension Fund (905,000) (905,000)

Total restricted funds 3,701,562 (3,770,550) 14,300,434 14,231,446

Unrestricted funds Unrestricted general funds 39,834 75,241 115,075

Total funds 39,834 3,776,803 (3,770,550) 14,300,434 14,346,521

Under the funding agreement with the Secretary of State, the academy trust was subject to a limit on the amount of GAG that it could carry forward at 31 August 2013. Note 2 discloses whether the limit was exceeded.

Analysis of academies by fund balance

Fund balances at 31 August 2013 were allocated as follows:

Page 37



17 Funds (continued)

Total

Race Leys Junior School 1,483 Perry Wood Primary and Nursery School 138,441 Bramford Primary School 21,080 Central services 193,919

Total before fixed assets and pension reserve 354,923 Restricted Fixed Asset Fund 14,896,598 Restricted Pension Fund (905,000)

Total 14,346,521

Analysis of academies by cost

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

Support Staff Costs

Other Support Staff

Costs Educational

Supplies

Other Costs (excluding

Depreciation) Total

Race Leys Junior School 545,015 174,946 80,210 196,830 997,001 Perry Wood Primary and Nursery School 983,814 110,203 23,184 265,117 1,382,318 Bramford Primary School 328,205 78,630 3,055 84,335 494,225 Central services 37,530 4,396 754,114 796,040

Academy Trust 1,857,034 401,309 110,845 1,300,396 3,669,584

18 Analysis of net assets between funds

Restricted Unrestricted Restricted fixed asset

funds general funds funds Total funds

Tangible fixed assets 14,287 14,896,598 14,910,885 Current assets 115,075 800,068 915,143 Current liabilities (574,507) (574,507) Pension scheme liability (905,000) (905,000)

Total net assets 115,075 (665,152) 14,896,598 14,346,521

19 Financial commitments

Operating leases At 31 August 2013 the Academy had annual commitments under non-cancellable operating leases as follows:

Page 38

9,479

g activities 31 August

2013

14,361,687 26,012

(282,824) (14,072,610)

(22) (276,582)

545,020

300,681

31 August 2012

39,834

••■

(4,993) 29,487

64,328

31 August 2013

22

22

31 August 2012

31 August 2013

(14,287)

31 August 2012



19 Financial commitments (continued)

Operating leases which expire: 31 August

2013 31 August

2012

Other Within two to five years

20 Reconciliation of net income to net cash inflow/(outflow) from operatin

Net income Depreciation Cash transferred on conversion to an academy trust Donated capital and capital grants Interest receivable Increase in debtors Increase in creditors

Net cash inflow from operating activities

21 Returns on investments and servicing of finance

Interest received

Net cash inflow from returns on investments and servicing of finance

22 Capital expenditure and financial investment

Purchase of tangible fixed assets

23 Analysis of changes in net funds At 1

September 2012 Cash flows

64,328 569,240

At 31 August 2013

633,568 Cash at bank and in hand

Page 39



24 Members' liability

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

25 Pension and similar obligations

The 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 . Both are defined benefit schemes.

The pension costs are assessed in accordance with the advice of independent qualified actuaries. The latest actuarial valuation of the TPS was 31 March 2004 and of the LGPS 31 August 2012.

Contributions amounting to £10,936 (2012 - Nil) were payable to the schemes at 31 August and are included within creditors.

Teachers' Pension Scheme

Introduction

The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers' Pensions Regulations (2010). These regulations apply to teachers in schools that are maintained by local authorities and other educational establishments, including academies, in England and Wales. In addition teachers in many independent and voluntary-aided schools and teachers and lecturers in some establishments of further and higher education may be eligible for membership. Membership is automatic for fall-time teachers and lecturers and from 1 January 2007 automatic too for teachers and lecturers in part-time employment following appointment or a change of contract. Teachers and lecturers are able to opt out of the TPS. The Teachers' Pension Budgeting and Valuation Account

Although members may be employed by various bodies, their retirement and other pension benefits are set out in regulations made under the Superannuation Act (1972) and are paid by public funds provided by Parliament. The TPS is an unfunded scheme and members contribute on a "pay as you go" basis - these contributions along with those made by employers are credited to the Exchequer under arrangements governed by the above Act.

The Teachers' Pensions Regulations require an annual account, the Teachers' Pension Budgeting and Valuation Account, to be kept of receipts and expenditure (including the cost of pensions' increases). From 1 April 2001, the Account has been credited with a real rate of return, which is equivalent to assuming that the balance in the Account is invested in notional investments that produce that real rate of return.

Page 40



25 Pension and similar obligations (continued)

Valuation of the Teachers' Pension Scheme

At the last valuation, the contribution rate to be paid into the TPS was assessed in two parts. First, a standard contribution rate (SCR) was determined. This is the contribution, expressed as a percentage of the salaries of teachers and lecturers in service or entering service during the period over which the contribution rate applies, which if it were paid over the entire active service of these teachers and lecturers would broadly defray the cost of benefits payable in respect of that service. Secondly, a supplementary contribution is payable if, as a result of the actuarial review, it is found that accumulated liabilities of the Account for benefits to past and present teachers, are not fully covered by standard contributions to be paid in future and by the notional fund built up from past contributions. The total contribution rate payable is the sum of the SCR and the supplementary contribution rate.

The last valuation of the TPS related to the period 1 April 2001 to 31 March 2004. The Government Actuary's report of October 2006 revealed that the total liabilities of the Scheme (pensions in payment and the estimated cost of future benefits) amounted to £166,500 million. The value of the assets (estimated future contributions together with the proceeds from the notional investments held at that valuation date) was £163,240 million. The assumed real rate of return was 3.5% in excess of prices and 2% in excess of earnings. The rate of real earnings growth was assumed to be 1.5%. The assumed gross rate of return was 6.5%. From 1 January 2007, the SCR was assessed at 19.75%, and the supplementary contribution rate was assessed to be 0.75% (to balance assets and liabilities as required by the regulations within 15 years). This resulted in a total contribution rate of 20.5%, which translated into an employee contribution rate of 6.4% and employer contribution rate of 14.1% payable.

Actuarial scheme valuations are dependent on assumptions about the value of future costs, the design of benefits and many other factors. Many of these assumptions are being considered as part of the work on the reformed TPS, as set out below. Scheme valuations therefore remain suspended. The Public Service Pensions Bill, which is being debated in the House of Commons, provides for future scheme valuations to be conducted in accordance with Treasury directions. The timing for the next valuation has still to be determined, but it is likely to be before the reformed schemes are introduced in 2015.

Page 41




Teachers' Pension Scheme Changes

Lord Hutton published his final report in March 2011 and made recommendations about how pensions can be made sustainable and affordable, whilst remaining fair to the workforce and the taxpayer. The Government accepted Lord Hutton's recommendations as the basis for consultation and Ministers engaged in extensive discussions with trade unions and other representative bodies on reform of the TPS. Those discussions concluded on 9 March 2012 and the Department published a Proposed Final Agreement, setting out the design for a reformed TPS to be implemented from 1 April 2015.

The key provisions of the reformed scheme include: a pension based on career average earnings; an accrual rate of 1/57th; and a Normal Pension Age equal to State Pension Age, but with options to enable members to retire earlier or later than their Normal Pension Age. Importantly, pension benefits built up before 1 April 2015 will be fully protected.

In addition, the Proposed Final Agreement includes a Government commitment that those within 10 years of Normal Pension Age on 1 April 2012 will see no change to the age at which they can retire, and no decrease in the amount of pension they receive when they retire. There will also be further transitional protection, tapered over a three and a half year period, for people who would fall just outside of the 10 year protection.

In his interim report of October 2010, Lord Hutton recommended that short-term savings were also required, and that the only realistic way of achieving these was to increase member contributions. At the Spending Review 2010 the Government announced an average increase of 3.2 percentage points on the contribution rates by 2014-15. The increases were to be phased in from April 2012 on a 40:80:100% basis.

Under the definitions set out in Financial Reporting Standard (FRS 17) Retirement Benefits, the TPS is a multi-employer pension scheme. The academy is unable to identify its share of the underlying assets and liabilities of the scheme. Accordingly, the academy has taken advantage of the exemption in FRS 17 and has accounted for its contributions to the scheme as if it were a defined contribution scheme. The academy has set out above the information available on the scheme.

Local Government Pension Scheme Race Leys School Scheme started: 1 September 2012 Warwickshire County Council Pension Fund Administered by Warwickshire County Council

Bramford Primary School Scheme started: 1 June 2013 West Midlands Pension Fund Adminstered by Dudley Metropolitan Borough Council

Perry Wood Primary and Nursery School Scheme started: 1 December 2012 Worcestershire County Council Pension Fund Administered by Worcestershire County Council

Page 42



25 Pension and similar obligations (continued) The Griffin School Trust is one of several employing bodies within the Local Governmet Pension Scheme (LGPS).

The LGPS is a funded defined-benefit scheme, with the assets held in separate trustee-administered funds. The total contribution made for the year ended 31 August 2013 was £ 97,000 (2012 - £, Nil), of which employer's contributions totalled £ 76,000 (2012 - £ Nil) and employees' contributions totalled £ 21,000 (2012 - £ Nil). The agreed contribution rates for future years are 21-23.1 per cent for employers and 5.9 per cent for employees.

As described in the notes the LGPS obligation relates to the employees of the academy trust, who were the employees transferred as part of the conversion from the maintained school and new employees who were eligible to, and did, join the scheme in the year. The obligation in respect of employees who transferred on conversion represents their cumulative service at both the predecessor school and the academy trust at the balance sheet date.

Different actuarial assumptions have been applied to each of the three LGPS pension schemes. The following assumptions are derived from the acturial report for Worcestershire County Council Pension Fund.

Principal actuarial assumptions

Rate of increase in salaries Rate of increase for pensions in payment/inflation Discount rate for scheme liabilities Inflation assumptions (CPI)

At 31 August At 31 August 2013 2012

5.00 3.00 5.00 2.00

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


Retiring today Males retiring today Females retiring today

Retiring in 20 years Males retiring in 20 years Females retiring in 20 years

The academy's share of the assets and liabilities in the scheme were:

23.00 25.00

24.00

27.00

Page 43





Equities 529,400 Other bonds 183,800 Property 69,280 Cash 64,520

Total market value of assets 847,000

Surplus in the scheme 847,000

The expected rates of return were:


cyo Equities 7.00 Other bonds 4.00 Property 5.00 - Cash 4.00

The expected return on assets is based on the long-term future expected investment return for each asset class at the beginning of the period. The returns on gilts and other bonds are assumed to be the gilt yield and corporate bond yield (with an adjustment to reflect the default risk) respectively at the relevant date. The returns on equities and property are then assumed to be a margin above gilt yields.

The actual return on scheme assets was £ 30,000 (2012- Nil).

Amounts recognised in the statement of financial activities 31 August 31 August

2013 2012

Current service cost 78,000

Total operating charge 78,000

Analysis of pension finance income/(costs) 31 August 31 August

2013 2012

Expected return on pension scheme assets 13,000 Interest on pension liabilities (33,000)

Pension finance costs (20,000)

The actuarial gains and losses for the current year are recognised in the statement of financial activities. The cumulative amount of actuarial gains and losses recognised in the statement of financial activities since the adoption of FRS 17 is £ 60,000 (2012- Nil).

Page 44




Movements in the present value of defined benefit obligation 31 August 31 August

2013 2012

Transfer/Business Combination 1,650,000 Current service cost 78,000 Interest cost 33,000 Employee contributions 21,000 Actuarial gains (30,000)

At 31 August 1,752,000

Movements in the fair value of academy's share of scheme assets 31 August 31 August

2013 2012

Transfer/Business Combination 707,000 Expected return on assets 13,000 Actuarial gains 30,000 Employer contributions 76,000 Employee contributions 21,000

At 31 August 847,000

The estimated value of employer contributions for next period is £ 113,550 (2012 - £ Nil).

History of experience adjustments Amounts for the current period are as follows:

31 August 31 August 2013 2012

Present value of scheme liabilities (1,752,000) Fair value of scheme assets 847,000

Deficit in the scheme (905,000)

26 Related party transactions Owing to the nature of the Academy's operations and the composition of the board of governors being drawn from local public and private sector organisations, it is inevitable that transactions will take place with organisations in which a member of the board of governors may have an interest. All transactions involving such organisations are conducted at arm's length and in accordance with the Academy's financial regulations and normal procurement procedures. During the year the academy made the following related party transactions:

Page 45



26 Related party transactions (continued)

Capital Talent Limited (a company in which Liz Lewis and Ange Tyler, both trustees, have a majority interest) During the year £217,742 was paid to Capital Talent Limited for the strategy and educational leadership service provided for the Trust by two senior directors, delivery of the Start Up School Improvement Programme for two schools, significantly discounted rental of premises (utilities and rates included) and the supply of start-up IT hardwares, softwares and peripherals. Capital Talent has provided considerable support to the Trust during its start-up period, including Liz Lewis and Ange Tyler working fee free for eight months after incorporation and the three months before when the application for sponsorship was developed. The company has also allowed extended credit terms on its invoices to assist with working capital when required and provided rent free office accommodation and all supplies and equipment for the first eight months, including costs of telephone, broadband and all utilities. Thereafter (since September 2012) the Trust pays a rental level which the Board consider to be very favourable. The Griffin Schools Trust currently has a licence to occupy the office premises for a three year period ending 31 August 2015. The Board considered a benchmarking exercise and Value for Money analysis to ensure that the contracts for services from Capital Talent to lead, manage and strategically develop the Griffin Schools Trust were in the Trust's best interests. Both Liz Lewis and Ange Tyler recused themselves from the meeting during the discussions and decision and this is clearly shown in the minutes. At the balance sheet date the amount due to Capital Talent Limited was £ 331,526 (2012 - £ Nil). Sagacious Associates Limited (a company in which Nick Watkiss, a trustee, has a majority interest) During the year £46,946 was paid to Sagacious Associates Limited for educational consultancy service provided. At the balance sheet date the amount due to Sagacious Associates Limited was £ Nil (2012 - £ Nil).

27 Post balance sheet events

On 1 September 2013, the following schools became part of the Trust: Nicholas Chamberlaine Technology College Kingfisher Community Primary School Saxon Way Primary School

On 1 November 2013, the following schools became part of the Trust: Riverley Primary School Lordswood School Wayfield Primary School, Nursery Unit and Children's Centre Park Lane Primary School, Nursery and Parent's Centre

Page 46

The Griffm Schools Trust


28 Conversion to an academy trust On 1 September 2012 the Race Leys Junior School converted to academy trust status under the Academies Act 2010 and all the operations assets and liabilities were transferred to The Griffin Schools Trust from the Warwickshire County Council Local Authority for £Nil consideration.

On 1 December 2012 the Perry Wood Primary and Nursery School converted to academy trust status under the Academies Act 2010 and all the operations assets and liabilities were transferred to The Griffin Schools Trust from the Worcestershire County Council Local Authority for £Nil consideration.

On 1 June 2013 the Bramford Primary School converted to academy trust status under the Academies Act 2010 and all the operations assets and liabilities were transferred to The Griffin Schools Trust from the Dudley Metropolitan Borough Council Local Authority for £Nil consideration.

These transfers have been accounted for using the acquisition method. The assets and liabilities transferred were valued at their fair value and recognised in the balance sheet under the appropriate headings with a corresponding net amount recognised in the Statement of Financial Activities as voluntary income. The following table sets out the fair values of the identifiable assets and liabilities and an analysis of their recognition in the SOFA.

Tangible fixed assets

Restricted general fund

Restricted fixed asset

fund Total

Freehold/leasehold land and buildings 14,817,500 14,817,500 Other tangible fixed assets 105,110 105,110 Budget surplus on LA funds 282,824 282,824 LGPS pension deficit (850,000) (850,000)

Net (liabilities)/assets (567,176) 14,922,610 14,355,434

The above net assets include £ 282,824 that were transferred as cash.

Page 47

the griffin schools trust · the griffin schools trust trustees' report for the year ended 31...

Documents