the holt school report and financial statements for · pdf filethe holt school report and...

Company Limited by Guarantee Registration number: 7661205 (England and Wales)

THE HOLT SCHOOL

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2014

THE HOLT SCHOOL

CONTENTS TO THE FINANCIAL STATEMENTS

Page

Reference and Administration Information 1

Report of the Governors 2-9

Governance Statement 10 - 12

Statement on regularity. propriety and compliance 13

Statement of Governors' Responsibilities 14

Independent Auditors' Report 15 - 18

Statement of Financial Activities 19

Balance Sheet 20

Cash Flow Statement 21

Notes to the Financial Statements 22 - 41

THE HOLT SCHOOL

REFERENCE AND ADMINISTRATIVE DETAilS

Members Mr David Ronald Fisher Mr Peter Mercer Miss Suzanne Richards

Governors Mr Christopher Cottam Mrs Tessa Jane Dove Mrs Lisa Ann Finch Mr David Ronald Fisher (Chairman) Mr Mark Gatfield Mrs Lynne Elizabeth Griffith Mr Peter Mercer Mrs Sandra Clare Miall Mrs Jan Percival Miss Suzanne Richards Mrs Charlotte Selby (appointed 9 December 2014) Mrs Arvind Kaur Sidhu (appointed 4 October 2014) Mrs Yvonne Joy Smith Mr Ronald Thomas Stewart Dr David Stock (resigned 12 December 2013) Mr Jonathan Patrick Taylor Ms Margaret Taylor Mr Lloyd Watkins Mrs Michelle Worthington

Company Secretary Mrs Janet Perry

Registered Office The Holt School Holt Lane Wokingham Berkshire RG41 1EE

Company Registration Number 07661205

Auditors Crowe Clark Whitehill LLP Aquis House 49-51 Blagrave Street Reading Berkshire RG1 1PL

Page 1

THE HOLT SCHOOL

REPORT OF THE GOVERNORS


The governors present their annual report together with the financial statements and auditor's report of the Charitable Company for the year ended 31 August 2014.

The financial statements have been prepared in accordance with the accounting policies on pages 22-25 of the financial statements, and comply with the Company's Memorandum and Articles of Association, the Companies Act 2006, and the requirements of the Statement of Recommended Practice "Accounting and Reporting by Charities," (SORP 2005), and the Academies Accounts Direction, (August 2014).

The trust operates an academy for girls aged 11-16 and a co-educational 6th form serving a catchment area in central Wokingham. It has a student capacity in the main school of 1000 and had a roll of 999 in the school census on 11th October 2013 and an additional 235 students in the 6th form.

Structure, Governance and Management

Constitution

The Holt School is a company limited by guarantee and is an exempt charity. The Charitable Company's Memorandum and Articles of Association and Funding Agreement are the primary governing documents of the Academy Trust. The Charitable Company was incorporated on ih June 2011 and The Holt School converted to an Academy on 15t July 2011.

The governors act as the trustees for the charitable activities of The Holt School and as directors of the Charitable Company for the purposes of Company law. The Charitable Company is incorporated as The Holt School.

Details of the governors who served The Holt School throughout 2013/14 are included in the Governance Statement on page 10.

Members' Liability

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

Governors', (Directors'), Indemnities

As disclosed in note 11, professional indemnity insurance is paid on behalf of the directors of the Academy.

Method of Recruitment and Appointment or Election of Governors I Directors

The Academy's Directors are subject to re-election every four years although this time limit does not apply to the Head teacher. New directors are recruited in accordance with the Articles of Association and 'A Guide to the Law for School Governors.'

Page 2

THE HOLT SCHOOL



Policies and Procedures Adopted for the Induction and Training of Governors

The School continues to procure Governor Support services provided by Wokingham Borough Council, the local authority. Additional training is provided as required based on individual or collective need. External advice and support is commissioned where necessary.

Organisation Structure

The structure of the School consists of three senior levels: the Board of Directors (Governing Body), the Head teacher and the broader Senior Leadership Team which includes Deputy Head Teachers, Assistant Head Teachers and the School Business Manager. An aim of this management structure is to distribute responsibility and accountability and to encourage involvement in decision making at all levels so that the School nurtures the talents of its entire staff to support continual improvement and excellence.

The Board of Directors is responsible for setting the School's policies, adopting the School Improvement Plan and budget, monitoring performance against these plans and making major decisions about the direction of the School including its curriculum, the achievement and welfare of students and staffing.

The Head teacher and Senior Leadership Team control the School at an executive level, implementing the policies set by the Board of Directors and reporting back to them.

The Board of Directors has established four sub-committees. Each sub-committee has its own terms of reference detailing the responsibilities discharged to the sub-committee, to the Head teacher (The Accounting Officer) and to the Senior Management Team. The terms of reference and meeting frequency for each sub-committee is reviewed and approved by the Board of Directors annually. The terms of reference for the Finance Sub-Committee detail the School's authorised spending limits.

The sub-committees of the Governing Body are the:

• Strategic Planning Committee • Standards and Curriculum Committee • Finance Committee • Site and Buildings Committee

Groups of governors may be formally organised outside of the sub-committee structure to support the School as required, to consider:

• Head teacher, and SL T recruitment. • Appraisal of the Head teacher • Pupil Discipline • Staff Discipline • Complaints • Significant areas of change management, i.e. a major building project

Page 3

THE HOLT SCHOOL



Connected Organisations including Related Party Relationships

During 2013-14 the Academy worked with The Emmbrook School, The Forest School and St Crispin's School in delivery of some 6th Form subjects, furthering the pursuit of the Academy's charitable activities and meeting the needs of 6th form students in a cost effective way whilst taking advantage of teaching expertise across the local schools.

A link with Wellington College through the ISSP (Independent State School Partnership) has continued offering numerous opportunities across a wide range of subjects for the most able, gifted and talented students including Oxbridge interview support. Following Wellington's designation as a Teaching School The Holt joined the Wellington Teaching School Alliance and are engaging in the NCTL "Big 6" - ITT (Initial Teacher Training), SLE (Specialist Leaders of Education), School to School Support, Research and Development, CPO/Leadership Development and Succession Planning and talent management.

The school is also a member of the Wokingham Federation of Secondary Schools and is a founding member of the Girls School Network (which includes all the girls schools in Berkshire (Baylis Court, Kendrick, Newlands, Reading Girls and Windsor Girls). Through these networks The Holt have shared practice, giving and receiving, across a range of whole school (e.g. internet safety, alternative curriculum) and subject specific (e.g. maths, art) areas.

Objectives and Principal Activities

The Holt School is a girls' comprehensive which is consistently oversubscribed and highly regarded.

Founded in 1931, The Holt School is proud of its history and promotes traditional values alongside 21st century learning. Our mission statement "To inspire all members of The Holt community by challenging them to maintain a safe and caring environment in which they achieve success whilst preparing for a future in an ever changing global society" regularly shortened to "Inspire, challenge, achieve" underpins all that we do.

The object of The Holt School is set out in the Company's Articles of Association, namely "to advance for the public benefit education in the United Kingdom, in particular but without prejudice to the generality of the foregoing by establishing, maintaining and carrying on, managing and developing a school offering a broad and balanced curriculum".

Public Benefit

In setting objectives and planning the Academy's activities, the Board of Directors have paid due regard to the published guidance from the Charity Commission regarding the principle of public benefit.

Page 4

STRATEGIC REPORT

THE HOLT SCHOOL



Achievements and Performance in the year 2013·14

The main activity during the period under review was to continue to ensure that students' attainment and achievement was outstanding.

Significant achievements include:

• Examination results at GCSE, 20 % above the national average during a year when the media have reported volatility of results elsewhere due to changes to assessment models. At AS level (year 12, lower sixth) improvements across the board with a value added grade of 2 which places The Holt in the top 10% nationally. Whilst at A Level (year 13, upper sixth) 29.9%, of A*A grades and A*-C of 84.5%; this meant that virtually every student progressed to their chosen university, apprenticeship or employment

• Completion of a new Humanities Block providing six additional classrooms following a successful bid to the Academies Capital Maintenance Fund and the refurbishment of the schools 6th form area.

• Providing a wide ranging programme of enrichment activities, school trips and visits including trips to China, Italy and Iceland.

• A Cross Curricular day on the theme of healthy living organised and led by 6th form students to mixed age groups throughout the day culminating with invited external speakers for the final assemblies for approximately 1000 students and staff members in the sports hall and 300 in the main hall. The day secured a silver Eco School awards.

• Reaccreditation for a further three years for the International School award, recognising the schools excellence at embedding internationalism into the curriculum.

• Appointment of the school as a Global Learning Expert Centre to build a local network of like-minded schools and work with those colleagues to drive global learning across the curriculum, and share best practice.

Tables 1 and 2 below provide a summary of the School'S performance in the summer 2014 examination season:

Table 1. Comparison of GCSE examination results

No. of students 194 A*-A 42.2% 40.3%

SA*-C 90.7% 88.6% SA*-C Inc. English and Maths 83% 78.6% SA*-G 100% 99.9%

PageS

THE HOLT SCHOOL



Table 2. Comparison of A2 Examination results

'"g:;i~,:;;"i';'>':i:J!:i":§i:i;;,;f.';;: ir':;;,,,;!; > if::;::;;; ,;;-:-i t.lg:;);;:i)!;;;~j;::i)i';'·';' !it/;t ;Z01.f;:i[~ill~!.&/t·· ,:.·;;;;;;i~;r:~i;~',· A* 13.1% 9.9%

A*-A 36.8% 29.9%

A*-B 64.5% 57.2%

A*-C 87.2% 84.5%

A*-E (pass rate) 100% 99.3%

Alps VA Grade 3 4

Objectives for 2014·15, Strategies and Activities

The Board of Directors have set the School's strategic aims through the School Improvement Plan. These aims are monitored closely by the Board of Directors by way of Head teacher and Senior Leadership Team Reports and through the work of the sub committees.

The whole school Improvement Plan 2014-15 is set against the key priority of Teaching and Learning (T&L) supported by: 1: Pedagogy; with lesson planning including Higher Order Thinking Skills and Feedback and Marking 2: Curriculum; underpinned by Thirst for Learning! Growth mindset 3: Stakeholders; with a focus on Budget Planning 4. Environment; continued refurbishment of accommodation

The key targets for the forthcoming year are:

. A·a:iZt:if:fii~ i'i.1, ' ~ti;l;i~h~;~!i~~)~t\'.ik:;~;~;::;i~~:; ; Io'!,.,""v· ........... ' . ;3 •• ;;;;;,,,,:\'i':[;;:' ., Key Stage 3 Level 5 or higher in maths and English

All grades at KS3

Key Stage 4 8+ A * or A grades at GCSE

5 A*-C grades at GCSE

5 A*-C at GCSE including maths and English

1+ A*-G at GCSE including

Achievement of 3 levels of progress in GCSE English Achievement of 3 levels of progress in GCSE Maths

Key Stage 5 A* -A grades at A2 A * -8 grades at A2

Total pass rate

Alps VA Grade Attendance Absence not to exceed

'h;rirQ~tr;·)r;;:\\;:G~~1~i.;f:f;;rit~ 94% to be above the national average 25.5% 97%

95.5%

100%

97.5% 97.5% 33% 65% 100%

3 3.5%

Page 6

THE HOLT SCHOOL

REPORT OF THE GOVERNORS FOR THE YEAR ENDED 31 AUGUST 2014

Plans for Future Periods

The Holt School strives to continually improve levels of attainment for all students, equipping them with the qualifications, skills and character to follow their chosen pathway, whether it be into further and higher education, training or employment.

The School believes that developing the whole child is critical to improving levels of attainment and in developing broader skills and character that will develop students' commitment to lifelong learning and enrich their quality of life. To this extent, the School strives to provide exceptional behaviour and attendance management support to its students and to offer a broad range of extra-curricular activities.

Going Concern

After consideration of the school's financial position, its financial plans, (including projected student numbers), the demand for places and the broader environment, the Board of Directors have a reasonable expectation that the School has and will continue to have adequate resources to enable it to be a sustainable going concern in 2014/5 and for the foreseeable future. For this reason the School continues to adopt the Going Concern principle in preparing its financial statements. Further details regarding the adoption of the Going Concern basis can be found in the statement of accounting policies.

Key Financial Performance Indicators and Financial Review

The Academy received income into its Unrestricted Fund, Restricted General Funds and Fixed Asset Fund during 2013/14:

Restricted General Fund

The majority of the Academy's income was received through Education Funding Agency (EFA) recurrent revenue grants into the Restricted General Fund, the use of which is restricted to the academy's charitable activities, its educational operations. These revenue grants, and the associated revenue expenditure made against them, are detailed in the SOFA. General Restricted Fund income for the year was £6,850,584; expenditure against the fund was £6,956,299.After accounting for transfers and movements on the pension deficit, an amount of (£208,495) was transferred to reserves, giving a carry forward fund balance of (£1 ,207,845).

Unrestricted Funds

Income received into the Unrestricted Fund was £537,959. This was predominantly attributable to the school's in-house catering and large number of school trips, due in part to the school's 'International' status. Expenditure against the fund was £413,229 for the year.

An amount of £559,990 was transferred to the Restricted Fixed Asset Fund in the year. Of this, £459,990 represents the value of fixed assets purchased from Unrestricted Funds in the year, in accordance with the Governors' accounting policy and signed resolution. The remaining £ 100,000 transferred from Unrestricted Funds to the Restricted Fixed Asset Fund represents £100,000 of unrestricted income which has been specifically earmarked for future capital spent, in accordance with the Budget Forecast supplied to the EFA earlier this year.

Unrestricted Funds carried forward are therefore £265,539.

Page?

THE HOLT SCHOOL



Restricted Fixed Asset (Capital) Fund

The Restricted Fixed Asset Fund balance is reduced by an annual depreciation charge over the expected useful life of the assets concerned in line with the Academy's depreciation policy.

In the year ended 31 August 2013, the school was successful in bidding for funding from the Academies Capital Maintenance Fund. A total of £982,570 had been received by the year ended 31 August 2014 (being the bid total of £1 ,007,764 less retentions outstanding at the year end date). This entire sum was invested in a new classroom block. The new block was completed and ready for use by the year end. The balance of the funding was provided from the school's revenue reserves and a donation of £180,000 from The Holt School Trust.

Other income received into the fund included Formula Capital Funding of £25,009.

The carry forward balance on this fund after transfers is £15,639,142. This is detailed in note 16 to the accounts.

Summary of Financial Performance

Fund balances as at 31 August 2014 totalled £14,696,836. This is comprised of £265,539 of Unrestricted Funds, £1,207,845 (deficit) of Restricted General Funds (after accounting for pension deficit of £1 ,370,000), and £15,639,142 of Restricted Fixed Asset Funds.

Balance Sheet

The Academy's assets were predominantly used for providing education to school students. Some assets were let to the local community, predominantly for sports and a holiday activity club.

The net book value of the Academy's tangible fixed assets was £15,503,168 as at 31 August 2014. The movement in this account is detailed in note 13.

Cash in hand at 31 August 2014 was £542,691.

Principal Risks and Uncertainties

The Board of Directors has a comprehensive risk management process to identify and monitor the risks faced by the Academy. The principal risks identified include governance, statutory compliance, finance, insurance, attainment, attendance, behaviour, health and safety, organisation, operations, safeguarding, reputation, HR and ICT. A risk rating mechanism is in place with greater emphasis directed towards those identified higher risk areas.

The objective of the Academy's Risk Management procedure is to identify the principal risks facing the academy so that existing controls may be considered and further action taken if required, including external insurance.

The valuation of the defined benefit pension scheme is a liability of £1,370,000. On the balance sheet, this is offset by Academy's reserves.

Page 8

Reserves Policy

THE HOLT SCHOOL



The Board of Directors reviews the Academy's Reserve Policy annually. The Board of Directors have determined that the appropriate level of revenue reserves should continue to be a minimum of £200,000 in the third year of the academy's life. The policy of the Academy is to carry forward a prudent level of resources designed to meet the long-term cyclical needs of renewal and any other unforeseen contingencies, subject to the constraint that the level of resources does not exceed the level permitted by the EFA.

The reason for this reserve is to provide sufficient working capital, and to provide a cushion to deal with unexpected emergencies, capital maintenance and development projects.

The Academy's free reserves as at 31 st August 2014 were £265,539.

Investment Policy

The Academy has invested the sum of £102,583 with Scottish Widows Bank. This is a low risk short term investments. The objective of this account is to hold the Academy's reserve at low risk.

The Academy does not have any endowment funds.

Funds held as Custodian Trustee on behalf of others

Neither The Holt School or the Board of Directors / Trustees are acting as third party custodial trustees.

Auditor

In so far as the governors are aware:

• there is no relevant audit information of which the charitable company's auditor is unaware; and

• the governors 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.

The auditors, Crowe Clark Whitehill LLP are willing to continue in office and a resolution to appoint them will be proposed at the Annual General Meeting.

The report of the Directors was approved by the members of the Governing Body on 8th

December 2014 and signed on its behalf by:

1\/ is her

Chair of Governors

~~~ ____ 0~~ k~c~~ . har

Page 9

THE HOLT SCHOOL

GOVERNANCE STATEMENT FOR THE YEAR ENDED 31 AUGUST 2014

Scope of Responsibility As governors, we acknowledge we have overall responsibility for ensuring that The Holt School 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 the Headteacher, 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 Holt School and the Secretary of State for Education. She is 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 governors' Report and in the Statement of Governors' Responsibilities. The governing body has formally met four times during the period covered by these accounts. Attendance during the period at meetings of the governing body was as follows:

Governor

Mr Christopher Cottam Mrs Tessa Jane Dove Mrs Lisa Ann Finch Mr David Ronald Fisher Mr Mark Gatfield Mrs Lynne Elizabeth Griffith Mr Peter Mercer Mrs Sandra Clare Miall Mrs Jan Percival Miss Suzanne Richards Mrs Charlotte Selby Mrs Arvind Kaur Sidhu Mrs Yvonne Joy Smith Mr Ronald Thomas Stewart Dr David Stock Mr Jonathan Patrick Taylor Ms Margaret Taylor Mr Lloyd Watkins Mrs Michelle Worthington

Meetings attended

Two Two Two Three Four Two Four Two Four Four Three Three Four Three One Three Four Two Two

Out of a possible

Four Four Four Four Four Four Four Four Four Four Three Three Four Four Two Four Four Four Four

During the year Dr David Stock retired as a governor and two new governors were appointed, Mrs Arvind Sidhu (parent governor) and Mrs Charlotte Selby (co-opted).

The Finance Committee is a sub-committee of the main governing body. Its purpose is to assist the decision making of the Governing Body, by enabling more detailed consideration to be given to the best means of fulfilling the Governing Body's responsibility to ensure sound management of the academy's finances and resources, including proper planning, monitoring and probity. During the period, the committee has focused on continuing to ensure good financial practice and policy and that the school budget is used to meet the school'S objectives whilst maintaining a secure financial position in the context of reducing school budgets.

Page 10

THE HOLT SCHOOL


The Finance Committee reviewed its membership in September 2013 and attendance at meetings in the year was as follows:

Governor

Mr David Fisher Mr Mark Gatfield Mr Peter Mercer Mrs Sandra Miall Miss Suzanne Richards Ms Margaret Taylor Mrs Michelle Worthington

Governance Review

Meetings attended

Four Three Four Three Four Four Two

Out of a possible

Four Four Four Four Four Four Four

The Strategic Planning Committee reviews annually the governance arrangements for the school and makes recommendations for changes to the Full Governing Body. A review was undertaken in February 2014 and concluded that no changes were necessary. However, the committee has recommended that as vacancies arise, the Full Governing Body would seek candidates with specific skill sets to enhance the Governing Body.

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 been in place in The Holt School for the year ended 31 August 2014 and up to the date of approval of the annual report and financial statements.

Capacity to Handle Risk The governing body has reviewed the key risks to which the academy trust is exposed together with the operating, financial and compliance controls that have been implemented to mitigate those risks. The governing body is of the view that there is a formal on-going process for identifying, evaluating and managing the academy trust's significant risks that has been in place for the year ending 31 August 2014 and up to the date of approval of the annual report and financial statements. This process is regularly reviewed by the governing body.

Page 11

THE HOLT SCHOOL


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:

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

• regular reviews by the Finance 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 governors have appointed Crowe Clark Whitehill, as Responsible Officer ('RO'). The RO's role includes giving advice on financial matters and performing a range of checks on the academy trust's financial systems and has been fully delivered in line with the EFA's requirements. During the year ended 31 August 2014, the RO reported on three occasions to the governing body on the operation of the systems of control and on the discharge of the governing body's financial responsibilities. During the period, no material control issues have been identified requiring remedial action.

Review of Effectiveness As accounting officer, the Headteacher 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 Responsible Officer; • The Academies Financial Handbook; • the work of the external auditor; • the financial management and governance self-assessment process; • the work of the School Business Manager within the academy trust who has

responsibility for the development and maintenance of the internal control framework.

The accounting officer has been advised of the implications of the result of their review of the system of internal control by the Finance Committee and the Responsible Officer and is pleased to report that no weaknesses have been identified. A programme of further review will however ensure continuous development of the system is in place.

Approved by order of the members of the governing body on 8th December 2014 and signed on its behalf by:

~~ .. ~,~ ~~. \)~ MISS Richards Accounting Officer

Page 12

THE HOLT SCHOOL

STATEMENT ON REGULARITY, PROPRIETRY AND COMPLIANCE


As accounting officer of the Holt School 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 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 no instances of material irregularity, impropriety or funding non-compliance have been discovered to date. If any instances are identified after the date of this statement, these will be notified to the board of trustees and EFA.

Miss Suzanne Richards Accounting Officer

.~\k:d~

Page 13

THE HOLT SCHOOL

STATEMENT OF GOVERNORS' RESPONSIBILITIES


The Governors (who are also directors of The Holt School for the purposes of company law) are responsible for preparing the Governors' Annual Report, Strategic Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).

Company law requires the Governors to prepare financial statements for each financial year. Under company law the Governors 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 the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Governors are required to:

• select suitable accounting policies and then 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 Governors are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions, disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions of the charity's constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The governors are responsible for ensuring that in its conduct and operation the charitable company applies financial and other controls, which conform with the requirement both of propriety and of good financial management. They are also responsible for ensuring grants received from the EFAlDfE have been applied for the purposes intended.

The governors 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 financial statements may differ from legislation in other jurisdictions.

Approved by order of the members of the governing body on 8th December 2014 and signed on its behalf by:

Mr David Fisher Chair of Governors

Page 14

INDEPENDENT AUDITORS' REPORT

TO THE MEMBERS OF THE HOLT SCHOOL

We have audited the financial statements of The Holt School for the year ended 31 August 2014 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and the related notes numbered 1 to 26.

The financial reporting framework that has been applied in their preparation is applicable law, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and the Annual Accounts Direction 2013 to 2014 issued by the Education Funding Agency.

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

Respective responsibilities of governors and auditor

As explained more fully in the Statement of Governors' Responsibilities, the governors (who are also the directors of the charitable company for the purpose of company law) are responsible for the preparation of the financial statements and for being 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 applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements.

In addition, we read all the financial and non-financial information in the Governors' Report and Strategic Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Page 15

INDEPENDENT AUDITORS' REPORT

TO THE MEMBERS OF THE HOLT SCHOOL (CONTINUED)

Opinion on financial statements

In our opinion the financial statements:

• give a true and fair view of the state of the charitable company's affairs as at 31 August 2014 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, including the Academies' Accounts Direction 2013 to 2014 issued by the Education Funding Agency; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion the information given in the Governors' Report and Strategic 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

• the financial statements are not in agreement with the accounting records and returns; or

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

• we have not received all the information and explanations we require for our audit.

Janette Joyce Senior Statutory Auditor

For and on behalf of Crowe Clark Whitehill LLP Statutory Auditor Aquis House 49-51 Blagrave Street Reading Berkshire RG1 1PL

8th December 2014

Page 16

INDEPENDENT AUDITOR'S REPORT ON REGULARITY TO THE GOVERNING

BODY OF THE HOLT SCHOOL AND THE EDUCATION FUNDING AGENCY

In accordance with the terms of our engagement letter dated 19 July 2011 (and amended on 3 October 2012) and further to the requirements of the Education Funding Agency (EFA) as included in the Academies Accounts Direction 2013 to 2014, we have carried out an engagement to obtain limited assurance about whether, the expenditure disbursed and income received by The Holt School during the period 1 September 2013 to 31 August 2014 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 governing body and the EFA in accordance with the terms of our engagement. Our work has been undertaken so that we might state to The Holt School and 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 governing body and the EFA, for our review work, for this report, or for the conclusion we have formed.

Respective responsibilities of The Holt School's accounting officer and the reporting accountant

The accounting officer is responsible, under the requirements of The Holt School's funding agreement with the Secretary of State of Education dated 16 June 2011 and the Academies Financial Handbook, extant from 1 September 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 to 2014. We report to you whether anything has come to our attention in carrying out our work which suggests that in all material respects, expenditure disbursed and income received during the period 1 September 2013 to 31 August 2014 have not been applied to purposes intended by Parliament and 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 to 2014 issued by the EFA. We performed a limited assurance engagement as defined in our engagement letter.

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

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

Our engagement includes examination, on a test basis, of evidence relevant to the regularity and propriety of the academy trust's income and expenditure.The work undertaken to draw to our conclusion includes a review of the design and implementation of the Academy's internal controls and review processes on regularity, supported by detailed tests on samples of costs incurred by the academy and specific transactions identified from our review.

Page 17

INDEPENDENT AUDITOR'S REPORT ON REGULARITY TO THE GOVERNING

BODY OF THE HOLT SCHOOL AND THE EDUCATION FUNDING AGENCY

Conclusion

In the course of our work, nothing has come to our attention which suggests that in all material respects the expenditure disbursed and income received during the period 1 September 2013 to 31 August 2014 has not been applied to purposes intended by Parliament and the financial transactions do not conform to the authorities which govern them.

Crowe Clark Whitehill LLP Statutory Auditor Aquis House 49-51 Blagrave Street Reading Berkshire RG11PL

8th December 2014

Page 18

THE HOLT SCHOOL

STATEMENT OF FINANCIAL ACTIVITIES


(INCLUDING INCOME AND EXPENDITURE ACCOUNT AND STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES)

Un- Restricted Restricted restricted Funds Fixed Asset 2014 2013

Funds General Funds Total Total Notes £ £ £ £ £

Incoming resources Incoming resources from

generated funds: Voluntary income 2 1,976 9,227 11,203 10,559 Activities for generating

funds 3 485,724 43,213 528,937 475,539 Investment income 4 2,630 2,630 6,054 Incoming resources from charitable activities:

Funding for the Academy's educational operations 5 47,629 6,798,144 205,009 7,050,782 8,301,313

Total incoming resources 537,959 6,850,584 205,009 7,593,552 8,793,465

Resources expended Charitable activities: Academy's educational

operations 8 413,229 6,939,541 412,613 7,765,383 7,858,149 Governance costs 12 16,758 16,758 12,699

Total resources expended 6 413,229 6,956,299 412,613 7,782,141 7,870,848

Net incoming/(outgoing) resources before transfers 124,730 (105,715) (207,604) (188,589) 922,617

Gross transfers between funds 16 (559,990) (1,780) 561,770

Net incoming/(outgoing) resources before other recognised gains and losses (435,260) (107,495) 354,166 (188,5891 922,617

Other recognised gains and losses

Actuarial (losses) on defined benefit pension schemes 26 (101,000) (101,000) (74,000)

Net movement in funds (435,260) (208,495) 354,166 (289,589) 848,617

Funds brought forward 700,799 (999,350) 15,284,976 14,986,425 14,137,808

Funds carried forward at 31 August 2014 265539 (1 207845) 15639142 14696836 14986425

All the Academy's activities are derived from acquisitions and continuing operations in the current financial period.

The notes on pages 22 - 41 form part of these financial statements

Page 19

Fixed assets Tangible assets

Current assets Debtors Short-term deposits Cash at bank and in hand

Current liabilities

COMPANY NUMBER: 7661205

THE HOLT SCHOOL

BALANCE SHEET

31 AUGUST 2014

Note

13

14

CREDITORS: amounts falling due within one year 15

Net current assets

Net assets excluding pension liability

Pension scheme liability 26

Net assets including pension liability

Restricted funds General fund 16 Pension deficit 16 Fixed asset fund 16

Total restricted funds

Unrestricted funds General funds 16

Total funds 17

2014 2013 £ £

15,503,168 14,291,044

260,639 929,095 102,583 851,819 542,691 391,049

905,913 2,171,963

(342,245) (315,582)

563,668 1,856,381

16,066,836 16,147,425

(1 ,370,000) (1,161,000)

14,696,836 14,986.425

162,155 161,650 (1,370,000) (1,161,000) 15,639,142 15,284,976

14,431,297 14,285,626

265,539 700,799

14,696,836 14,986.425

, Jhe fi~~Ancial statements wer~ approved ~y the Directors and authorised for issue on r ",DeS::t;mb !t-and are Signed on their behalf by

Fisher Chair of Governors


Page 20

THE HOLT SCHOOL

CASH FLOW STATEMENT


2014 Note £

Net cashflow from operating activities 22 810,759

Returns on investments and servicing of finance 23 2,630

Capital expenditure 24 (1,410,983)

Increase in cash before use of liquid resources (597,594)

Management of liquid resources Transfer to/(from) short-term deposits 749,236

Increase in cash in the period 151,642

Reconciliation of net cash flow to movement in net funds

Increase in cash 151,642

Net funds at 31 August 2013 391,049

Net funds at 31 August 2014 542,691

Analysis of changes in net funds

At 31 August Cash

2013 Flow

Short-term deposits 851,819 (749,236) Cash in hand and at bank 391,049 151,642

Net funds 1,242,868 (597,594)

2013 £

(535,176)

6,054

1,033,920

504,798

(251,819)

252,979

252,979

138,070

391,049

At 31 August

2014

102,583 542,691

645,274

All of the Academy's cashflows are derived from continuing operations in the current financial period.


Page 21

THE HOLT SCHOOL

NOTES TO THE FINANCIAL STATEMENTS


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 Academies Accounts Direction issued by the EFA and the Companies Act 2006. A summary of the principal accounting policies, which have been applied consistently, except where noted, is set out below.

Going Concern The governors 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 governors 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 Academy Trust has entitlement to the funds, certainty of receipt and the amount can be measured with certainty.

Grants Receivable Grants receivable 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.

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

Capital Grants Capital grants are recognised when relievable 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 Sheet in the restricted fixed asset fund.

Sponsorship Income Sponsorship income provided to the Academy which amounts to a donation is recognised in the statement of financial activities in the period in which it is receivable.

Donations Donations are included in the statement of financial activities on a cash received basis or on an accruals basis where they are assured with reasonable certainty and are receivable at the balance sheet date.

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.

Interest receivable is included within the statement of financial activities on a receivable basis.

Page 22

THE HOLT SCHOOL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)


Incoming resources (continued)

Donated Services and gifts in kind The value of donated services and gifts in kind provided to the Academy are recognised at their open market value in the period in which they are receivable as incoming resources, where the benefit to the Academy Trust can be reliably measured. An equivalent amount is included as expenditure under the relevant heading in the Statement of Financial Activities, except where the gift in kind was a fixed asset in which case the amount is included in the appropriate fixed asset category and depreciated over the useful economic life in accordance with the Academy's policies.

In respect of buildings transferred to the Academy from its previous form as a Maintained School, the open market value of this has been included within voluntary income under the Restricted Fixed Asset Fund. The cost of the building is depreciated over 50 years.

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 a particular heading 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.

Costs 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.

All resources expended are inclusive of irrecoverable VAT.

Page 23

THE HOLT SCHOOL



Tangible Fixed Assets

Assets costing £1,000 or more, which have been acquired since the Academy was established, are capitalised as tangible fixed assets and are carried at cost, net of depreciation and any provision for impairment. Freehold Land and Buildings that were acquired when the Academy was established are now valued at depreciated replacement cost, in accordance with a site valuation received from the EFA (undertaken by Drivers Jonas Deloitte). The governors are not expecting to revalue the property in the future.

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 the 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.

It is the Academy Trust's policy to transfer any amounts in the Unrestricted Fund that have been spent on capitalised fixed assets to the Restricted Fixed Asset Fund. This policy has been formally approved, minuted and adopted by the Governing Body.

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

Freehold land and buildings 2% Fixtures and fittings 20% Motor Vehicles 20% Plant and machinery 20% Computer equipment 33%

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.

Included within Fixed Assets is recognition of the value of the land and buildings transferred to the Academy from its predecessor form as a Maintained School. This took place in the period ended 31 August 2012. The Academy received a site valuation from EFA on a Depreciated Replacement cost basis (undertaken by Drivers Jonas Deloitte.

Operating Leases

Rentals under operating leases are charged to the Statement of Financial Activities on a straight line basis over the lease term.

Page 24

THE HOLT SCHOOL



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.

Teachers' Pension Scheme Retirement benefits to employees of the Academy Trust are provided by the Teachers' Pension Scheme ('IPS') and the Local Government Pension Scheme ('LGPS') 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 Note 26, 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.

Local Government Pension Scheme 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 year 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.

Fund accounting General funds represent those resources which may be used towards meeting any of the objects of the Academy at the discretion of the Governors.

Restricted funds comprise grants from the EFA and other donors which are to be used for specific purposes.

Liquid resources Liquid resources represent cash placed on short-term deposit that is a low risk short term investments.

Page 25

2.

3.

4.

THE HOLT SCHOOL



VOLUNTARY INCOME

Unrestricted Restricted 2014 Funds Funds Total

£ £ £

Donations 1,976 9,227 11,203

ACTIVITIES FOR GENERATING FUNDS


£ £ £

Hire of facilities 42,157 42,157 Sales materials 60,256 60,256 Catering fees 303,221 303,221 Examination fees 7,609 7,609 Casual letting 6,542 6,542 Other income 65,939 43,213 109,152

485,724 43,213 528,937

INVESTMENT INCOME


£ £ £

Bank interest 2,630 2,630

2013 Total

£

10,55.9

2013 Total

£

50,150 45,701

249,192 13,674 6,257

110,565

475.539

2013 Total

£

6,054

Page 26

5.

6.

THE HOLT SCHOOL



FUNDING FOR THE ACADEMY'S EDUCATIONAL OPERATIONS


£ £ £ Capital grants Devolved formula capital grant 25,009 25,009 Academies capital maintenance fund -

Donation from The Holt School Trust 180,000 180,000

205,009 205,009

DfE I EFA revenue grants General Annual Grant (GAG) 6,467,503 6,467,503 Other DfE I EFA grants 91,488 91,488

6,558,991 6,558,991

Other Government grants Special educational projects 47,629 47,629

Total grants 47,629 6,764,000 6,811,629

School trip income 239,153 239,153

47,{229 7,003,153 1,050,782

RESOURCES EXPENDED

Staff Other 2014 costs Premises costs Total

£ £ £ £

Academy's educational operations

Direct costs 4,547,076 403,868 690,356 5,641,300 Allocated support costs 785,462 589,855 748,766 2,124,083

Governance costs including allocated support costs 16,758 16,758

Total 5,332,538 993.723 1,455,880 7.782,141

2013 Total

£

25,398

1,240,764

1,266,162

6,570,318 91,160

6,661,478

99,067

8,026,707

274,606

8,301,313.

2013 Total

£

5,548,073 2,310,076

12,699

7.870,848

The method used for the apportionment of support costs is disclosed in the accounting policies (note 1).

Page 27

7.

8.

THE HOLT SCHOOL



SURPLUSFORTHEPE~OD

Surplus for the period is stated after charging: 2014 2013

£ £

Operating leases - other 64,264 116,464 Depreciation 403,868 336,326 Auditor's remuneration for audit services 10,250 9,975 Auditor's remuneration for other services 5,950 5.545

ACADEMY'S EDUCATIONAL OPERATIONS

Unrestricted Restricted Total Total Funds Funds 2014 2013

£ £ £ £ Direct costs Teaching and educational support staff

costs 47,629 4,499,447 4,547,076 4,512,271 Depreciation 403,868 403,868 336,326 Educational supplies 14,418 470,702 485,120 523,816 Examination fees 125,250 125,250 111,770 Staff development 24,415 24,415 23,471 Educational consultancy 13,910 13,910 Other direct costs 23 41 ,638 41,661 40.419

62,070 5,579.230 5.641,300 5.548.073

Allocated support costs

Support staff costs 785,462 785,462 824,021 Recruitment 24,385 24,385 21,993 Maintenance of premises

and equipment 141,121 215,749 356,870 629,924 Cleaning 94,565 94,565 94,499 Rent & rates 30,314 30,314 23,743 Insurance 47,589 47,589 42,619 Security and transport 16,478 16,478 8,977 Catering 202,004 28,089 230,093 199,380 Bank interest and

charges 6,749 6,749 8,398 School trips 312,947 312,947 263,737 Other support costs 8,034 210,597 218,631 192,785

351.159 1,772,924 2,124,083 2,310,076

413,229 7,352,154 7!765!383 7,8.58., 149

Page 28

THE HOLT SCHOOL



9. STAFF

Staff costs

Staff costs during the period were:

Wages and salaries Social security costs Pension costs

Staff numbers

Charitable Activities Teachers Administration and support Management

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

£60,001 - £70,000 £80,001 - £90,000

2014 £

4,428,865 304,196 599,477

5.332.538

2014 No.

84 47

6

137

2014 No.

2 1

2013 £

4,371,628 302,256 662.408

5,336,292

2013 No.

81 50

7

138

2013 No.

2 1

Three of the above employees participated in the Teachers' Pension Scheme. During the year ended 31 August 2014, pension contributions for these members of staff amounted to £30,689 (2013: £29,599).

Of the above employees earning more than £60,000 per annum, none participated in the Local Government Pension Scheme during the year ended 31 August 2014.

Page 29

THE HOLT SCHOOL



10. GOVERNORS' REMUNERATION AND EXPENSES

The Head Teacher and staff governors only receive remuneration in respect of services they provide undertaking the roles of Head Teacher and staff and not in respect of their services as governors.

The value of the Head Teacher's remuneration was £85,000 to £90,000.

The value of other staff governors' remuneration was as follows:

Yvonne Smith: Michelle Worthington: Lisa Finch:

£45,000 to £50,000 £35,000 to £40,000

£5,000 to £10,000

During the year ended 31 August 2014, travel and subsistence expenses totalling £32.50 (2013: £Nil) were reimbursed to 1 staff governor.

Related party transactions involving governors are set out in note 25.

11. GOVERNORS' AND OFFICERS' INSURANCE

12.

In accordance with normal commercial practice the Academy has purchased insurance to protect governors and officers from claims arising from negligent acts, errors or omissions occurring whilst on Academy business. The insurance provides cover up to £2,000,000 on anyone claim and the cost for the year ended 31 August 2014 was approximately £1 ,678 (2013: £1,890).

The cost of insurance is included in total insurance costs.

GOVERNANCE COSTS

2014 2013 £ £

Legal and Professional fees 481 Auditors remuneration:

Audit of financial statements 10,250 9,975 Non-audit remuneration 5,950 5,545

Support costs 558 723

16,758 16,724

Page 30

13. TANGIBLE FIXED ASSETS

Leasehold Leasehold Buildings Land

£ £

Cost At 1 July 2013 12,702,387 1,784,485 Additions 25,541 Transfer 1,419,030 Disposals

At 31 August 14.146.958 1.784.485 2014

Depreciation At 1 July 2013 503,719 Charged in 264,439

period Disposals

At 31 August 768.158 2014

Net book value At 31 August 13.378.800 1.784.485 2014

At 1 July 2013 12.198.668 1.784.485

THE HOLT SCHOOL



Assets Furniture under Computer fittings and Motor

construction Equipment equipment vehicles Total £ £ £ £

52,348 294,932 77,326 8,317 14,919,795 1,448,681 80,656 59,335 1,779 1,615,992

(1,501,029) 21,534 60,465

397.122 197.126 10.096 16.535.787

106,353 17,263 1,416 628,751 111,068 26,372 1,989 403,868

217.421 43.635 3.405 1.032.619

179.701 153.491 6.691 15.503.168

52.348 188.579 60.063 6.901 14.291.044

Page 31

14.

15.

THE HOLT SCHOOL



DEBTORS 2014

£

Trade debtors 2,452 Other debtors 123,372 Prepayments and accrued income 134.815

260,639

CREDITORS: amounts falling due within one year

2014 £

Trade creditors 101,973 Other taxation and social security 98,284 Other creditors 80,156 Accruals 61.832

342,245

2013 £

2,372 65,148

861,575

929,095

2013 £

84,293 96,448 80,864 53,977

315.58.2

Page 32

THE HOLT SCHOOL



16. STATEMENT OF FUNDS

Balance at 1 Gains, September Incoming Resources Losses and

2013 Resources expended Transfers £ £ £ £

Restricted General Funds

General Annual Grant 913 6,467,503 (6,384,594) (1,780) Other EFA grants 1,182 91,488 (91,687)

2,095 6,558,991 (6,476,281 ) (1,780)

School fund 159,555 291,593 (372,018)

Pension reserve (1,161,000) (108,000) (101 ,000)

(999,350) 6,850,584 (6,956,299) (102,780)

Restricted Fixed Asset Fund

Fixed assets 14,291,044 (403,868) 1,615,992 DfE/EFA capital grants 993,932 205,009 (8,745) (1,054,222)

15,284,976 205,009 (412,613) 561,770

Unrestricted Funds Unrestricted funds unspent 700,799 537,959 (413,229) (559,990)

Total funds 14.986.425 7,593,552 (7,782,141) (101,000)

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

Restricted General Funds

Balance at 31 August

2014 £

82,042 983

83,025

79,130

(1 ,370,000)

(1,207,845)

15,503,168 135,974

15,639,142

265,539

14,696,836

Represents EFA grants (including GAG), which must be used to meet the cost of running The Holt School. As at 31 August 2014 it also includes those funds previously described as "Restricted Other Funds", being donations and fundraising income generated by the school, which is for restricted use. This change in presentation has been undertaken in order to comply with revised guidance in the Academies Accounts Direction 2013 to 2014.

Under the funding agreement with the Secretary of State, the academy trust was not subject to a limit on the amount of GAG that it could carry forward as at 31 August 2014.

Unrestricted Funds Represents income generated by the school (such as lettings and hire of facilities) and any other donations or investment income, which is not restricted for any specific purpose and can be spent as determined by the Governing Body.

Page 33

THE HOLT SCHOOL



16. STATEMENT OF FUNDS (continued)

Restricted Fixed Asset Funds Represents the value of fixed asset held by the academy trust, with the exception of funds either of an inherently capital nature, or allocated by the governing body for future capital spend, that remain unspent at the year end.

Transfers These relate to monies spent from GAG or Unrestricted Funds to purchase capitalised assets in during the year.

17. ANAL YSIS OF NET ASSETS BETWEEN FUNDS

Restricted Restricted Unrestricted General Fixed Asset

Funds Funds Fund Total £ £ £ £

Tangible fixed assets 15,503,168 15,503,168

Current assets 265,539 504,400 135,974 905,913 Current liabilities (342,245) (342,245) Pension scheme

liability (1 ,370,000) (1 ,370,000)

265.539 (1,207,845) 15,639,142 14!696.836

18. CAPITAL COMMITMENTS

At 31 August 2014 there were capital commitments of £25,009 (2013: £1,010,042).

19. FINANCIAL COMMITMENTS

Operating leases At 31 August 2014 the academy trust had annual commitments under non-cancellable operating leases as follows:

Other Expiring within one year Expiring within two and five years inclusive Expiring in over five years

2014 £

25,337 10,338

35.675

2013 £

18,712 34,455

53.167

Page 34

THE HOLT SCHOOL



20. CONTINGENT LIABILITIES

During the period of the Funding Agreement, in the event of the sale or disposal by other means of any asset for which a government capital grant was received, the Academy is required either to reinvest the proceeds or to repay to the Secretary of State the same proportion of the proceeds of the sale or disposal as equates with the proportion of the original cost met by the Secretary of State.

Upon termination of the Funding Agreement, whether as a result of the Secretary of State or the Academy serving notice, the Academy shall repay to the Secretary of State sums determined by reference to:-

a) the value at that time of the Academy's site and premises and other assets held for the purpose of the Academy.

b) the extent to which expenditure incurred in providing those assets was met by payments by the Secretary of State under the Funding Agreement.

21. MEMBERS' LIABILITIES

Every member of the charitable company undertakes to contribute such amount as may be required (such amount not exceeding £10) to the assets of the company in the event of it being wound up while he or she is a member or within one year after he or she ceases to be a member, for the payment of the Trust's debts and liabilities before he or she ceases to be a member and of the costs, charges and expenses of winding up and for the adjustment of the rights of contributions amongst themselves.

22. RECONCILIATION OF NET INCOME TO NET CASH INFLOW FROM OPERATING ACTIVITIES

Net movement in funds Loss on disposal Depreciation Interest received Capital grant received Capital donation received Movement in FRS 17 liability Decrease/(lncrease) in debtors Increase/(Decrease) in creditors

Net cash inflow/(outflow) from operating activities

2014 2013 £ £

(289,589)

403,868 (2,630)

(25,009) (180,000) 209,000 668,456 26,663

810,759

848,617 15,098

336,326 (6,054)

(1,266,162)

177,000 (628,744)

(11,257)

(535.176)

Page 35

THE HOLT SCHOOL



23. RETURNS ON INVESTMENT AND SERVICING OF FINANCE

Interest received

Net cash outflow from returns on investment and servicing of finance

24. CAPITAL EXPENDITURE

Purchase of tangible fixed assets Capital grants received Capital donation received

Net cash /(outflow)/inflow from capital expenditure

25. RELATED PARTY TRANSACTIONS

2014 2013 £ £

2,630 6.054

2,630 6.054

2014 2013 £ £

(1,615,992) 25,009

180,000

(1,410.983)

(232,242) 1,266,162

1.033.920

Owing to the nature of the Academy's operations and the composition of the board of governors being linked to 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.

For the year ended 31 August 2014 (2013: none), no related party transactions have taken place.

Page 36

THE HOLT SCHOOL



26. PENSIONS AND SIMILAR OBLIGATIONS

The Academy'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 Barnett Waddingham. 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 March 2004 and the LGPS, 31 March 2013.

Contributions amounting to £78,360 (2013: £79,090) were payable to the schemes at 31 August 2014 and are included within creditors.

Teachers' Pension Scheme The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers' Pensions Regulations (201 0) and, from 1 April 2014, by the Teachers' Pension Scheme Regulations 2014. Membership is automatic for full-time teachers in academies and, from 1 January 2007, 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 - these contributions along with those made by employers are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

The Teachers' Pensions Regulations require an annual 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.

Valuation of the Teachers' Pension Scheme The latest actuarial valuation of the TPS was carried out as at 31 March 2012 and in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014. The valuation report was published by the Department for Education 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 %);

• total scheme liabilities for service to the effective date of £191 ,500 million, and notional assets of £176,600 million, giving a notional past service deficit of £14,900 million; and

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

The new employer contribution rate is applicable from 1 April 2015 and will be implemented for the TPS from September 2015.

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

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26. PENSIONS AND SIMILAR OBLIGATIONS (CONTINUED)

Teachers' Pension Scheme Changes Lord Hutton made recommendations in 2011 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 with trade unions and other representative bodies. In March 2012 the Department for Education published proposals for the design for a reformed TPS.

The key provisions of the reformfjl,d scheme include: a pension based on career average earnings; an accrual rate of 1/57 ; 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. 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 up to three and a half years 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 have been phased in since April 2012 on a 40:80:100% basis.

The Department for Education has continued to work closely with trade unions and other representatives bodies to develop the reformatted Teachers' Pension Scheme and regulations giving effect to it came into force on 1 April 2014. Communications are being rolled out and the reformatted scheme will commence on 1 April 2015.

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 The LGPS is a funded defined-benefit scheme, with the assets held in separate trusteeadministered funds. The total contribution made for the year ended 31 August 2014 was £188,000 (2013: £194,000), of which employer's contributions totalled £141,000 (2013: £147,000) and employees' contributions totalled £47,000 (2013: £47,000). The agreed contribution rates for future years are 18.3 per cent for employers and from 5.5 to 7.5 per cent for employees depending on salary.

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

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26. PENSIONS AND SIMilAR OBLIGATIONS (CONTINUED)

Principal actuarial assumptions

Rate of increase in salaries Rate of increase of pensions in payment I inflation Discount rate for scheme liabilities Expected return on scheme assets at 31 August

At 31 August At 31 August 2014 2013

4.40% 2.60% 3.90% 5.90%

4.85% 2.9% 4.7% 5.2%

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

Retiring today - males Retiring today - females Retiring in 20 years - males Retiring in 20 years - females

At 31 August At 31 August 2014 2013

22.7 26.0 24.9 28.3

23.1 25.7 25.1 27.6

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

Expected Fair value return at 31 at 31

August August 2014 2014

£'000

Expected return at 31

August 2013

Fair value at 31

August 2013 £'000

Equities 6.7% 461 Gilts 3.0% 12 Other bonds 3.6% 161 Property 5.9% 132 Cash 2.9% 37 Target return portfolio 6.7% 182 Commodities 6.7% 93 Infrastructure 3.6% 48 longevity insurance 2.9% (40) Alternative assets nfa%

Total market value of assets 1,086 Present value of scheme liabilities

- Funded (2.456)

Surplusf(deficit) in the scheme {1 z370)

The actual return on scheme assets was £106,000 (2013: £73,000).

6.3% 3.5% 4.4% 4.3% 0.5% n/a% n/a% n/a% n/a% 4.7%

432 10

216 93 10

268

1,029

(2,190)

(1,161)

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The amounts included within the Statement of Financial Activities were as follows:

Current service cost Past service gain

Total operating charge

Analysis of pension finance income I (costs)

Losses on curtailments and settlements Expected return on scheme assets Interest on pension liabilities

Pension finance income I (costs)

2014 2013 £'000 £'000

198

198

(58) 109

51

187

187

28 (39) 74

63

The Holt School expects to contribute £119,000 to its defined benefit pension scheme in 2015. The actuarial gains and losses for the current period (£101,000 loss) are recognised in the statement of financial activities. The cumulative amount of gains and losses recognised in the statement of financial activities since the adoption of FRS 17 is a £442,000 loss.

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

At 1 September 2013 Current service cost Interest cost Estimated benefits paid (net of transfers in) Curtailments and settlements Employee contributions Actuarial (gain)/Ioss

At 31 August 2014

2014 2013 £ £

2,190 198 109 (22)

47 (66)

2,456

1,784 187

74 (37) 28 47

107

2.190

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

2014 £

At 1 September 2013 1,029 Expected return on assets 58 Actuarial (loss )/gain (167) Estimated benefits paid (net of transfers in) (22) Employer contributions 141 Employee contributions 47

At 31 August 2014 1,086

The history of experience adjustments is as follows:

2014

£

Present value of defined benefit obligations (2,456)

Fair value of share of scheme assets 1,086

Deficit in the scheme 11370

Experience adjustments on share of scheme assets

Amount £'000* (167)

Experience adjustments on scheme liabilities:

Amount £'000* 60

2013 £

800 39 33

(37) 147 47

1,029

2013

£

(2,190)

1,029

1,161

33

As described above 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 period. 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.

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