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Beal Multi-Academy Trust Limited (formerly known as The Forest Academy Trust) (A company limited by guarantee)

Registered number: 07835788

Beal Multi-Academy Trust Limited (formerly known as The Forest Academy Trust)

(A company limited by guarantee)

Annual Report and Financial Statements

For the year ended 31 August 2015

Contents

Page

Reference and administrative details of the academy, its trustees and advisers 1

Trustees' report 2 - 16

Governance statement 17 - 20

Statement on regularity, propriety and compliance 21

Trustees' responsibilities statement 22

Independent auditors' report 23 - 24

Independent reporting accountant's assurance report on regularity 25 - 26

Statement of financial activities 27

Balance sheet 28

Cash flow statement 29

Notes to the financial statements 30 - 49

Reference and Administrative Details of the Academy, its Members/ Trustees and AdvisersFor the year ended 31 August 2015

K Burns1,2 N Bhangu (resigned 31 July 2015)W Thompson T Canaii T Wilmot M Woodcock, Chairman Dr W Gent, Vice ChairmanS Snowdon CBE1,2 Dr E Sidwell CBEEmma Darley F SamahaM Corck V Porritt Alan Weinberg MBE

Company registered 07835788

Principal and registeredoffice

Woodford Bridge RoadIlford EssexIG4 5LP

Company secretary Dr W Gent

Senior management S Snowdon CBE, CEO/HeadteacherK Burns, MD W Thompson, TFA HeadteacherT Canaii, BBIH Principal K Ball, CLD Head P Bray, SCITT Director

Independent auditors Williams Giles Limited

Chartered AccountantsRegistered Auditors 12 Conqueror CourtSittingbourne Kent ME10 5BH

NatWest PO Box 414 38 StrandLondonWC2N 5JB

Eversheds 1 Wood StreetLondon EC2V 7WS

members of the Operations Committee members of the Audit Committee

Trustees' Report For the year ended 31 August 2015

The trustees present their annual report together with the financial statements and auditor’s report of the charitable company for the period 1 September 2014 to 31 August 2015. The annual report serves the purposes of both a trustees’ report, and a directors’ report under company law.

The trust operates 2 secondary/1 AP academy in Redbridge. Its academies have a combined pupil capacity of 3600 and had a combined roll of 3079 in the school census on 1 October 2015.

Structure, governance and management

Constitution

The academy trust is a company limited by guarantee and an exempt charity. The charitable

company’s memorandum and articles of association are the primary governing documents of the academy trust. The trustees of Beal Multi-Academy Trust are also the directors of the charitable company for the purposes of company law. The charitable company is known as Beal Multi-Academy Trust. Details of the trustees who served during the year are included in the Reference and Administrative Details on page 2.

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 £10 for the debts and liabilities contracted before he/she ceases to be a member.

Method of recruitment and appointment or election of Trustees

The Trustees and Governors are appointed by a majority resolution of the board. Parent Governors are appointed in compliance with a process set out in accordance with Department of Education guidelines. Other Governors are recruited and appointed to ensure there is a breadth of skills and knowledge necessary to advance the Academy Trust in all areas. The articles of association require members of the Charitable Company to appoint at least three Trustees to be responsible for the statutory and constitutional affairs of the Charitable Company and the management of the Academy Trust.

Policies and procedures adopted for the induction and training of Trustees

New Trustees and Governors will be given a tour of the Academies and the chance to meet staff, students, the CEO and the Headteacher/Principal with a view to ensuring the Trustee/Governor has a good understanding of the Academy Trust’s philosophy and its day to day operation. Trustee and Local Governor Training are taken very seriously by the Trust. Trustees and Governors are briefed regularly by the executive and leadership teams on governance, financial and other educational matters. The CEO provides a regular educational update on topical matters for Trustees and Governors. Members are encouraged to participate in training programmes and courses arranged by the Academies. Specific training is provided on technical issues to keep Trustees and Governors updated on all responsibilities.

Trustees' Report (continued)For the year ended 31 August 2015

Organisational structure

The management structure of the Academy consists of the Board of Trustees, the Local Governing Bodies, specific committees, the Trust Executive and the Senior Leadership Teams of the schools. The Trustees fulfil a strategic role: setting general policy, approving an annual Trust plan and budget, monitoring performance against the plan and budget and making decisions about the Trustees of the charitable company, capital expenditure and the Senior Leadership Team appointments. Detailed decisions are delegated to committees, the CEO and the Trust Executive Team. The CEO has taken on the role of Accounting Officer. The board delegates a number of functions to the Local Governing Bodies (LGBs) at each academy. Each Local Governing Body (LGB) reviews annual improvement plans and budgets and recommends these to the board of trustees, monitors academy performance and oversees parent and community liaison.

BMAT Trust and Governance structure: Beal Multi-Academy Trust was established on 1st February 2014. This coincided with Beal High School converting to academy status. Beal is a non-selective, outstanding 11-18 comprehensive school that also incorporates provision for 11-18 year old students on the autistic spectrum (CLD). Beal is currently in the process of expanding from 8 to 12 form entry and a 23m expansion was completed for September 2014. Beal Multi-Academy Trust incorporates: Beal High School; Forest Academy; CLD – specialist autistic provision; BBIH: Beal 14-19 Business Innovation Hub Free School and NELTA (North East London Teaching Alliance). Beal, as a maintained school, sponsored the local failing Hainault Forest High School to become the Forest Academy. Through sustained partnership the Forest Academy has been Ofsted judged to be good in all four areas after 3 years of school to school support from Beal High School. We were compelled to create the MAT once our first free school (BBIH) application was approved. This has led to the conception and implementation of our trust structure. In July 2014 we gained QTS Accredited Provider status (SCITT). BMAT is the legal entity, but we operate under our teaching alliance name: NELTA – North East London Teaching Alliance.

JointStandardsandEffectivenessCommittee

1 BMAT Structure

Audit Committee

NELTA

BealMulti-AcademyTrust

BealHighSchoolLGB

TheForestAcademy

LGBBBIHLGB

Pay & Personnel Committee



Trustees' Report (continued) For the year ended 31 August 2015

Audit Committee

Suda Ratnam B.A (Hons), FCCA Chair LGB member Beal LGB member TFA LGB member BBIH

Local Governing Bodies Constitution

Membership of the LGBs will be agreed on an annual basis; this will include a skills audit of each governing body. The BMAT CEO or a nominee from BMAT will be an ex-officio member of each LGB

Chair of LGB The BMAT- CEO 2 community governors 2 staff governors One co-opted governor Minimum of 1 parent governor (maximum of 2) Ex-officio – Headteacher/Principal A nominated Trustee to deliver support and challenge


Quorum: 3 members. Scheme of Delegation

The Local Governing Bodies will have delegated power to monitor the role of their Academy at an operational day to day level and review:

the management and organisation of the Academy/school; the implementation of the policies and agreed practices of the Trust and the BMAT CEO; performance in relation to targets and standards approved by the Trust; The LGBs will report to the Trust on decisions and will also provide advice and make

recommendations to the Trust on issues. Consider and make recommendations to the Trust on all financial and budgetary matters not

delegated either to the Headteacher/Principal or to the Audit Committee, including:

the preparation of the annual budget for the School and of any periodic review of budget monitoringreports;

policy update; receipt and consideration of reports from Trust Executive staff on all matters relating to:

the care of the buildings, including insurance, energy, services, health and Health and Safety policy, fire risk assessments and the Accessibility Plan; the arrangements for all premises related contracts, including catering; cleaning and grounds maintenance.

All finance policies:

To exercise the following delegated functions on behalf of the Trust: scrutiny of procedures for competitive tendering decisions on expenditure items between

£5,000 and £49,999; scrutinising contracts between £5,000 and £49,999; scrutiny of tenders for goods, services or works above the value of £50,000; scrutiny of arrangements to secure compliance with financial regulations.

Approving the Lettings Charging Guidelines prepared by the BMAT Executive and Finance;

with the assistance of the BMAT Executive keep the Risk Register up to date.

To consider and make recommendations regarding the Trust’s long-term plan for building development and refurbishment.

Every meeting of the LGBs will monitor standards and effectiveness, school improvement, student welfare, site issues and extended school issues as standing agenda items

Finance issues which require further detailed consideration will be referred by the LGBs to Finance who will consult with the BMAT CEO.

It is not proposed that the LGBs will have any standing separate sub-committees. However it may be necessary from time to time by agreement with the Chairman to establish a single purpose working party of the Governing Body in order to deal with an issue that cannot be dealt with adequately by the Governing Body in one of its scheduled meetings. Any such working party will be disbanded as soon as its work is complete

The termly schedule of meetings will commence with the Academy Trust, be followed by the Joint Standards and Effectiveness Committee in the first half-term, followed by the LGBs in the second half of the term and a further Trust meeting.

The audit committee will meet twice a year. This will allow monitoring and action made by a Governing Body or Committee to be reported to the

Trust as required by the Articles of Association. The joint committees will report directly to the Trust, but will support the work of the LGBs


Local Governing Body - Statutory Responsibilities

The Curriculum

Every learner receives the full statutory curriculum that the Academy must provide. The Academy provides teaching of religious education for all learners in accordance with the

agreed syllabus or otherwise and has told parents/cares of the right to withdraw their children. The LGB has agreed the content and organisation of its programme of sex and relationships

education and has informed parents/carers about it and the right to withdraw their children (see Trust Policy)

Equality and diversity

The LGB does not discriminate unlawfully against learners or staff on the grounds of sexual

orientation, race, disability, gender, religion and belief, or age (see Trust Policy). The LGB has agreed a written policy on race, disability and gender equality, arrangements to

monitor its implementation and assess its impact on staff, learners and parents/carers, and communicates the results of monitoring and assessments of impact to parents/carers and the LGB.

The LGB complies with its general duties under the Sex Discrimination Act 1975 (as amended), Race Relations Act 1976 (as amended) and Disability Discrimination Act 1995 (as amended) and specific duties in subordinate legislation made under those Acts and the requirements of the statutory codes of practice made under those Acts (see Trust Policy).

Learners with Learning Difficulties and/or Disabilities

The Academy meets its requirements in Part IV of the Education Act 1996 and has regard to the

Special Educational Needs Code of Practice when meeting learners’ special educational needs, makes its policy known to parents/carers and reports annually on the success of its policy.

The Academy meets the requirements Part 4 of the Disability Discrimination Act 1995 (DDA) and any subsequent requirements and has regard to the (DRC) code of practice for Academies (2002).

The Academy informs parents/carers of its accessibility plan and disability equality scheme and reports annually on progress made on these.

Learners’ Care and Well-Being

The LGB has procedures to ensure the provider meets all relevant health and safety legislation. The Academy has a child protection policy and procedures in place that are in accordance with

local authority guidance and locally agreed interagency procedures, (and the policy is made available to parents/carers on request).

Where the LGB provides Academy lunches and/or other Academy food, they ensure that they meet current DfE standards.

The LGB fulfils the requirements to promote the well-being of pupils at the Academy. The LGB has a statutory duty to ensure that Behaviour and Attendance (B&A) Partnership arrangements are put into place Informing Parents/Guardians

The LGB ensures that all statutory assessments are conducted and results are forwarded toparents/carers and appropriate bodies.

The LGB ensures that each year a report on each learner’s educational achievements is forwarded to their parents/carers.

The Academy keeps parents/carers and prospective parents/carers informed by publishing an Academy prospectus and by publishing an Academy profile in accordance with Regulations.

Leadership and Management Trustees' Report (continued) For the year ended 31 August 2015

The LGB monitors the Academy budget provided by the Trust. The LGB applies the Trust’s Performance Management Policy ensuring that all teachers are

appraised in accordance with statutory requirements. The Headteacher/Principal will be assessed in accordance with statutory requirements as set out

in the Trust’s Performance Management Policy. The LGB applies the Trust’s complaints and appeals procedures, consistent with the DfE Guide

to the Law for School Governors. The LGB promotes community cohesion, consistent with the Trust’s Community Cohesion Policy. The LGB meets the current Government requirements regarding safeguarding children and

safer recruitment. To consider and make recommendations regarding all significant issues relating to school land,

including leasing issues, drainage, rights of way of way and planning permission. To consider and make recommendations regarding all significant projects relating to land and

buildings.

The staff and family committees will not sit on the LGBs, but will keep the LGBs informed via the staff and parent governors

Beal High School LGB Nadje Butler Chair Sue Snowdon BMAT CEO Sue Snowdon Executive Headteacher Mandy Ansell Community Governor Ajitha Sadanandan Community Governor Sean Canaii Staff Governor Brendan O’Mahoney Staff Governor Davinder Kettory Co-opted governor Anna Grah Parent Governor

LGB The Forest Academy Michael Stokes Chair Sue Snowdon BMAT CEO Will Thompson Headteacher Sonia Gable Community Governor Stephen Smith Community Governor Sarah Clarke-Moisley Staff Governor Vacancy Staff Governor Co-opted governor Katie Bird Parent Governor Carol O’Brien Parent Governor

LGB Beal Business Innovation Hub Michelle Fuller Chair Sue Snowdon BMAT CEO Tessa Canaii Principal Sebastian Paszek Community Governor Richard Geyman Community Governor Veronika Stedronska Staff Governor Hazel Weinberg Co-opted governor Tbc Parent Governors

LGB: Agenda template:

Recurring items:

Noting and recording any changes to the register of interests. Receive the principal’s/headteacher’s report. Review of pupil progress, projected grades and targets.


Health and Safety Report from H&S LGB member. Beal MAT Report – Chair. Safeguarding Report from Safeguarding LGB member. Report on any serious disciplinary issues – nil response required. Report on any serious complaints – nil response required. Suggested annual items:

Academic Results. Review of aims of the school and confirmation of strategic plan for the following academic year. Review of progress against the school’s 3 year strategic plan. Draft School Development Plan for following year. Review of quality of teaching. Review of School Development Plan. Review of marketing strategy and competitor analysis. Review of the school’s Complaints Policy. Review of the school’s Special Educational Needs and Disability Policy.

Review of the school’s Child Protection Policy. Review of the school’s Equal Opportunities Policy. Review of the school’s Health and Safety Policy. Review of draft budget for following year. Dates of meetings for next 12 months.

CONSTITUTION OF BMAT STANDING COMMITTEES – Standards and Effectiveness, Audit, Pay and Personnel, and Appeals

The Committees set out below are established by the Trust with the membership, quorum and

delegated powers indicated and subject to the following general provisions:

references to the Chair shall include the Vice-Chair if the Chairman at the relevant time is disqualified or not available to serve as a member of the Committee;

the term of office of each member of a Committee shall expire when he or she resigns, after one

year, or if the Trust decides to reconstitute the Committees and LGBs; whichever event occurs first;

all authority delegated to a Committee to incur either expenditure or a commitment to expenditure issubject to the condition that provision for that expenditure has been made in a budget approved by the Trust;

each Committee shall comply with any general directions and policies approved by the Trust; and

action taken under delegated powers shall be reported as soon as practicable to the Governors.

The Chair of each committee shall be the person so designated by the Trust in appointing the

members. If the Trust should omit to make such a nomination, the Committee shall be empowered to appoint its Chair at the first meeting of the year.

The Chair of the Governors is authorised to discharge any function of the Governors if the delay in

calling a meeting would be likely to be seriously detrimental to the School, to a pupil, to a parent or to an employee.

The Appeals Committee is reconstituted for each specific issue and occasion from amongst those

Governors who are eligible and available to attend and who are not employees of the Academy Trust. More specific arrangements and requirements are indicated below for each committee.

BMAT TERMS OF REFERENCE

Attendance at each committee meeting, issues discussed and recommendations for decisions will be recorded. Once ratified at the following meeting, the minutes will be submitted to the Trust/LGB as appropriate. This is to meet statutory requirements, to provide information to the Trust and LGBs and to seek ratification of recommendations. The chair of the committee will be responsible for giving an oral summary of the committee's deliberations if necessary at meetings of the Trust and respective LGBs.

Each committee is authorised to invite attendance at its meetings from persons to assist or advise

on a particular matter or range of issues, including parents and members of the Trust staff who are not governors. Any governor may attend meetings of committees.

STANDARDS AND EFFECTIVENESS COMMITTEE

Purpose

To promote and share good practice across all BMAT schools and identify any professional

development needs. To consider and recommend curricular improvement and innovation to improve student outcomes. To monitor and track curriculum innovation and improvement and their effective implementation in

BMAT schools

The Chair and six other Governors – 2 from each LGB, together with the Headteachers/Principals and CEO.

Frequency of Meetings: Once each term.

Quorum: Three Governors.

Proposed Scheme of delegation:

To scrutinise and make recommendations to the Trust and LGB on all matters of School

Improvement – policy and practice. To contribute to the development of School Improvement Priorities To approve School Improvement Plans To ensure that a robust department and pastoral evaluation process is in place To ensure that annual action plans are in place and that appropriate targets are set

To receive and scrutinise reports from the academies on SIP priorities and the four key Ofsted areas To identify the key risks with regard to the key areas and maintain a register to monitor improvement

AUDIT COMMITTEE

Membership: One member from each LGB, not including the Chairman. Membership and Attendance

The members of the Audit Committee are appointed by the Trust. There shall be a minimum of 3 members of the Committee, with any 2 constituting a quorum.

Trust members who are not members of the Audit Committee have the right of attendance at meetings. The Secretary to the Audit Committee will circulate minutes of its meetings to all members of the Trust.

The CEO, in his/her role as Accounting Officer and the Managing Director will normally attend meetings of the Committee.

Frequency of Meetings

The Trust has determined that the Committee shall meet at least twice a year. The external auditor may request a meeting if he considers one necessary.

Quorum: Two members Trustees' Report (continued) For the year ended 31 August 2015

Scheme of Delegation:

In general terms, the Audit Committee is an advisory body without executive powers. The Committee has authority to investigate any activity that it deems relevant to its inquiries and to

seek any information from staff that it requires. The Committee’s work will include the role of ‘Responsible Officer’ with external support. It will

work with BMAT Auditors ensuring they are accorded full co-operation and will receive and consider their reports.

The Committee will: seek to promote a climate of financial discipline and control to help ensure the highest

standards of probity and efficiency; review the School's internal and external financial statements and reports to ensure that they reflect

best practice; discuss with the external auditor the nature and scope of each forthcoming audit and the findings

of the audit once completed; consider all relevant reports by the ‘Responsible Officer’, any internal auditors or the appointed

external auditor, including reports on the School's accounts, achievement of value for money and the response to any management letters;

monitor the implementation of action to address adverse control findings by the Responsible Officer, any internal auditors or the appointed external auditor;

review the effectiveness of the schools’ internal control systems established to ensure that the aims, objectives and key performance targets of the organisations are achieved in the most economic, effective and environmentally preferable manner;

consider and advise the Trust on the schools’ annual and long-term audit programmes, ensuring that the schools’ internal controls are subject to appropriate independent scrutiny at least in accordance with Government standards;

review the operation of the School's Code of Practice for Governors and Code of Conduct for staff; consider any other matters where requested to do so by the Trust. the Committee shall report on its deliberations to the Trust at least once a year on the discharge

of the above duties the Audit Committee is authorised to obtain independent professional advice if it considers this

necessary.

PERSONNEL AND PERFORMANCE SCHOOL SUB-COMMITTEES

Purpose:

To consider and recommend to the governors the school’s staffing establishment structure, salary policy and policy for the exercise of discretions relating to salary – excludes BMAT Headteachers/Principals and SLT.

To receive reports from the Headteachers/Principals on the implementation of the performance review process for all staff.

To monitor the operation and effectiveness of the Disciplinary, Capability, Harassment and Grievance Procedures.

Membership: The Headteacher/Principal will chair each committee with two other school LGB governors.

Frequency of Meetings: Once each term. Quorum: A combination of any two Governors APPEALS

COMMITTEE

Membership: The Chairman and five other Governors, not being either the Headteachers/Principals, StaffGovernors, a member of the Committee whose decision is under appeal or any Governor concerned in thematter to be considered in a capacity other than that of a Governor, or, if a parent of a pupil at the School, than


that of such parents generally.

Quorum: Three members.

Scheme of Delegation:

Hearing and determination of any appeal against a Trust/School decision under any approved staffprocedure; and any decision consequential upon the appeal decision.

Hearing and determination of appeals relating to salaries of individual teaching and non-teaching staff under the management structure.

Related parties and other connected charities and organisations

Previously Beal High School, as a maintained school established The Forest Academy Trust in order to sponsor the local failing Hainault Forest High School which became the Forest Academy (from 1 January 2012). Now both organisations are comprised in the same multi-academy trust alongside Beal Business Innovation Hub Formal Partnership arrangements are in place with our Initial Teacher Training (ITT) partner schools and HEIs via our SCITT . This involves distributing ITT central funding monies to our ITT partner providers. The SCITT has separate accounts from the BMAT schools and has a separate Ofsted inspection as an HEI ITT provider.

Trustees' indemnities

The Academy Trust through its Articles has indemnified its Trustees and Governors to the fullest extent permissible by law. During the period the Academy also purchased and maintained liability insurance for its Trustees and Governors.

Objectives and Activities

Objects and aims

Beal Multi Academy Trust was established as a Multi-Academy Trust on the 1st February 2014, prior to this date the trust comprised only The Forest Academy. BMAT runs a small network of successful schools. Our compelling vision for success encompasses a partnership model that is driven by our high expectations inclusion model. As well as providing individual students access to an extensive range of programmes and pathways we ensure that all our students get enough opportunities through alternative ‘stretch’ and leadership opportunities that make them stand out from the crowd. Put simply we have created ‘...a coherent approach that aligns education, training, skills and employment services’ within our partnership that employs both a values added and a value added approach to schooling. Our trust’s aim is to raise standards in education for all; we believe every young person deserves to have the best education possible. The principal activity of the Charitable Company is to advance for the public benefit education in the United Kingdom, in particular but without prejudice to the generality of the foregoing by establishing, maintaining, carrying on, managing and developing the academies within the Trust by offering a broad and balanced curriculum. Beal Multi Academy Trust provides excellent education, constantly striving to meet the needs of all students regardless of socio-economic background or ability. Beal High School (BHS) provides outstanding 11-18 secondary education to over 2,600 students; the majority are drawn from the academies designated catchment area. Our carefully designed curriculum provides rigorous pathways to different types of success. The Forest Academy (TFA) provides good 11-18 secondary education to over 900 students, serving the local community with increasing confidence. The Beal Business Innovation Hub (BBIH) opened in September 2014 and provides an innovative high quality alternative provision driven by career related learning to ‘broaden horizons’ and ‘close the gap’ for vulnerable learners. We were compelled to set up BMAT once our Beal 14-19 Business Innovation Hub Free School (BBIH) free school application was approved. This has led to the set up and implementation of our Trust structure. This coincided with Beal High School converting to an academy. Beal High School is an outstanding 11-18


comprehensive school that is at the heart of the Trust; that also incorporates an autistic unit for 11-18 year old students. It is currently in the process of expanding from 8 to 12 form entry with a new Key Stage three building opened in September 2014. The Trust incorporates: Beal High School; The Forest Academy; The Communication and Learning Department (CLD): a specialist 11-18 autistic unit; BBIH: Beal 14-19 Business Innovation Hub Free School (opened 1 September 2014) and NELTA (North East London Teaching Alliance) incorporating our SCITT

INSERT DIAGRAM

Trust agenda driven by:

Ensuring clarity of vision, ethos and strategic direction. Holding the headteachers/principals to account for the educational performance of the school and itspupils. Overseeing the financial performance of the schools and making sure its money is well spent.

As trustees of a charity, academy trustees must comply with the following duties:

Compliance – they must ensure that the charity’s resources are used for the charitable purpose and that the charity complies with the law and its governing document i.e. the Articles of Association. Care – they should take reasonable care in their work. In practice it simply means ensuring that theacademy trust is managed efficiently and effectively. It also means considering the need for professional advice on matters where there may be material risk to the charity. Prudence – they must act responsibly, making sure that the academy trust’s assets are protected and used for the benefit of the charity. The trustees must ensure that the academy trust is solvent and keeps appropriate financial records. These requirements are reflected in the funding agreement and Academies Financial Handbook 2015.

Public benefit

TThe primary purpose of the Beal Multi Academy Trust is the advancement of education within the local area. The Trust has given a high priority to providing public benefit to a cross section of the community and regardless of family background, but perhaps the greatest benefit that the Trust can offer is the provision of an education that maximises each student's potential to develop into principled, informed, open minded and confident citizens who respect the beliefs of others and who are determined to make a positive contribution to society. The Trustees have referred to the guidance in the Charity Commission's general guidance on public benefit when reviewing their aims and objectives and in planning future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives they have set.


Achievements and performance

Going concern

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

Key financial performance indicators

A risk register has been prepared which sets out the principal risks facing the Academy and the controls that exist to mitigate their effect. The Trustees consider that the principal risks and uncertainties facing the Trust are:

Balancing the BMAT budget with reduced income; whilst maintaining the quality of provision Future proof BMAT leadership succession planning and development

The Trust has produced three year forecasts to determine the effects of funding changes on the bottom line and considered the effect of funding reforms in future years. This includes national ‘stealth’ increases of approximately 12% over the next 3 years with no increase in budgets for schools or MATs. Prudent financial planning and management of resources are core activities with the current focus on central services, contract management and ITT via our SCITT to increase capacity and thus enable Trust expansion

Review of activities

Achievements and performance

All 3 Trust schools had a successful year in terms of progress, attainment and attendance as key performance indicators. TFA has consolidated its’ ‘good’ grading and is now aspiring to outstanding and the significant expansion at Beal has not affected outstanding outcomes for students. At a Regional schools Commissioner’s meeting to review the last year in October 2015 the following summary statements were made:

BMAT is a substantial Trust (in pupil number) with a confident and sustainable Trust/governance

model BMAT has a broad and interesting range of institutions BMAT has a solid basis on which to expand that the Regional School Commissioner’s office will

support

The Beal Business Innovation Hub successfully opened in September 2014 in temporary accommodation and has just moved into its’ permanent new building on the Beal Campus funded by the EFA and Free School movement. It has had 3 successful monitoring visits each showing significant improvement. The roll continues to grow as local knowledge and confidence in its provision increases The Teaching School; North East London Teaching Alliance (NELTA), has enjoyed a very successful year focussing on School 2 School Support and School Direct ITT (this activity has future-proofed BMAT teacher recruitment and we are fully staffed across all schools), it is now very well established and recruitment is secure. We successfully applied for QTS Accredited Provider status and the first cohort joined in September 2015. School to school support (SS2S) has been effective in sharing and developing best practice across the teaching alliance and beyond. Joint Practice Development (JPD) and designing for impact underpin research and development projects. All of these activities encourage future leadership development at all levels and ensure BMAT succession planning

Financial review

Financial and risk management objectives and policies

Most of the Academy's income is obtained from the DfE in the form of recurrent grants, the use of which is restricted to particular purposes. The grants received from the DfE during the year ended 31 August 2015 and the associated expenditure are shown as restricted funds in the statement of financial activities. During the year ended 31 August 2015, total expenditure of £XXXXXXX was more than covered by recurrent grant funding from the EFA together with other incoming resources. The excess of income over expenditure for the year (excluding restricted fixed asset funds and assets and liabilities transferred on conversion and the actuarial loss on the Local Government Pension Scheme liability) was £XXXXXX. At 31 August 2015 the net book value of fixed assets was £XXXXXX and movements in tangible fixed assets are shown in note 18 to the financial statements. The assets were used exclusively for providing education and the associated support services to the pupils of the Trust.

Principal risks and uncertainties

A risk register has been prepared which sets out the principal risks facing the Academy and the controls that exist to mitigate their effect. The Trustees consider that the principal risks and uncertainties facing the Trust are:

Balancing the BMAT budget with reduced income; whilst maintaining the quality of provision Future proof BMAT leadership succession planning and development

The Trust has produced contingency budgets should further unscheduled cuts be applied and whereinformation from the EFA has not been forthcoming. The Trust has undertaken reviews of its staffing structure to contain and monitor payroll costs in view of the potential risks to future funding.

Additional efforts have been undertaken to increase student recruitment at The Forest Academy (TFA) and reduce the risk of financial claw back from a lower than expected roll. Through its marketing plan, the Academy has heavily publicised the impact of policy changes and improved outcomes to attract students. This year has seen the sixth form exceed predictions and the current roll at TFA stands at: 899

Reserves policy

The Trustees review the reserve levels of the Trust annually. This review encompasses the nature of income and expenditure streams, the need to match income with commitments and the nature of reserves. The Trustees have determined that the appropriate level of free reserves should be equivalent to 2 weeks expenditure which would total some £XXXXXX the reason for this is to provide sufficient working capital to cover delays between spending and receipt of grants and to provide a cushion to deal with unexpected emergencies such as urgent maintenance. The Trust’s current level of free reserves (total funds less the amount held in fixed assets and restricted funds) is £XXXXXXX

Material investments policy

No investments are made at this time.

Plans for future periods

The trust's current key priorities

Our proposed free school expansion vision includes:

Beal Communication Hub - BCH (11-18 autistic school) – already runs as an outstanding unit, heavilyover-subscribed – should be operating at 42FTE, currently at 68FTE. We have plans drawn up for the proposed building co-located on the mainstream site, thus meeting the needs of high functioningAsperger’s students

BBIH2 – 9-14 AP provision co-located on the Forest Academy mainstream site – we have the full support of local primary schools and beyond- KPI indicator reintegration back into mainstream

Beal Primary Communication Hub - BPCH (5-11 autistic school) – co-located on a partner primary school to enable mainstream access. We have strong support locally and beyond.


School sponsorship in the next two years 2 x secondary schools 2 x primary schools Expand SCITT to include primary training (September 2017) in partnership with our NELTA primary

partners

What does the trust expect to look like in two years’ time? 7 schools by the end of Year 2 including: Beal, TFA and BBIH

Funds held as custodian trustee on behalf of others

After making appropriate enquires, the Board of Trustees has reasonable expectation that the Beal Academy Trust has adequate resources to continue its operational existence for the foreseeable future. For this reason it has adopted the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern can be found in the Statement of Accounting Policies.

Employee involvement and employment of the disabled Equal opportunities policy: The Trustees recognise that equal opportunities should be an integral part of good practice within theworkplace. The Trust aims to establish equal opportunity in all areas of its activities including creating a working environment in which the contribution and needs of all people are fully valued.

Disabled persons: The policy of the Trust is to support recruitment and retention of students and employees with disabilities. The Trust does this by adapting the physical environment, by making support resources available and through training and career development.

All BMAT policies are available on our school websites Employee Consultation Beal Campus Review incorporating full support staff and leadership review. The consultation began in January 2013 including individual, team and whole school consultation and continues as we implement recommendations and conclusions. The support staff review will be extended to include TFA specific staff, as well as those at TFA already assimilated into the overarching BMAT administrative and central service structure In addition, the pay policy was reviewed and agreed by our union representatives on behalf of the staff at all schools

Disclosure of information to auditors

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.

Auditors

It was agreed by Trustees on 01/04/14 to appoint William Giles as auditors for a further two years to support the


stability and consistency of the Trust.

This report was approved by order of the board of trustees on 8 December 2015 and signed on the board's behalf by:

Councillor Alan Weinberg MBEChair of Trustees

S Snowdon Accounting Officer

Governance Statement

Scope of Responsibility

As Trustees, we acknowledge we have overall responsibility for ensuring that Beal Multi-Academy Trust Limited (formerly known as The Forest Academy Trust) has an effective and appropriate system of control, financial and otherwise. However such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives, and can provide only reasonable and not absolute assurance against material misstatement or loss.

The board of trustees has delegated the day-to-day responsibility to the CEO, 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 Beal Multi-Academy Trust Limited (formerly known as The Forest Academy Trust) and the Secretary of State for Education. They are also responsible for reporting to the board of trustees any material weaknesses or breakdowns in internal control.

Governance

The information on governance included here supplements that described in the Trustees' report and in the Trustees' responsibilities statement. The board of trustees has formally met 6 times during the year. Attendance during the year at meetings of the board of trustees was as follows:

Meetings attended Out of a possible

M Woodcock, Chairman 5 Dr W Gent, Vice Chairman

5 Alan Weinberg MBE 6 V Porritt 3 Emma Darley 1 F Samaha 1 M Corck 5 S Snowdon CBE 6

The Trust members have remained constant throughout the year with the addition of Martin Corck and Fred Samaha to increase the skill set of the Trust. In February the Trust elected Mel Woodcock as Chair and Bill Gent as Vice Chair

Governance reviews:

BMAT Governance review:

Trust governance was reviewed and agreed at Trust and LGB level that the Operations Committee should be dissolved and the scheme of delegation be incorporated into the specific school LGB standing and annual agendas this includes: Finance, Premise and Health and Safety. It was agreed as more effective in terms of monitoring and evaluation as the school LGM members had far more detailed knowledge and understanding collectively related to the above. The next review is scheduled for February 2016. In addition, the Regional Schools Commissioner’s Office fed back to the Trust Executive In October 2015 that BMAT is:

is a substantial Trust - confident and sustainable Trust/governance model has a broad and interesting range of institutions has a solid basis to expand that the RSC will support

The Audit Committee is a sub-committee of the Local Governing Bodies. Its purpose in general terms is to act as an advisory body without executive powers.

The Committee has authority to investigate any activity that it deems relevant to its inquiries and to

seek any information from staff that it requires. The Committee promotes a climate of financial discipline and control to help ensure the highest

standards of probity and efficiency. review the School's internal and external financial statements and reports to ensure that they reflect

best practice;

Governance Statement (continued)

consider all relevant reports by the ‘Responsible Officer’, any internal auditors or the appointed external auditor, including reports on the school's accounts, achievement of value for money and the response to any management letters;

monitor the implementation of action to address adverse control findings by the Responsible Officer, any internal auditors or the appointed external auditor;

review the effectiveness of the School's internal control system established to ensure that the aims,objectives and key performance targets of the organisation are achieved in the most economic, effective and environmentally preferable manner;

consider and advise the Trust’s on the Schools’ annual and long-term audit programmes, ensuring that the Schools’ internal controls are subject to appropriate independent scrutiny at least in accordance with Government standards;

review the operation of the School's code of practice for Governors and code of conduct for staff; consider any other matters where requested to do so by the Board

the Committee shall report on its deliberations to the Trust at least once a year on the discharge of the above duties

the Audit Committee is authorised to obtain independent professional advice if it considers thisnecessary.

Attendance at meetings in the year was as follows:

Meetings attended Out of a possible

S Ratnam (Chair) 2 S Snowdon CBE 2 N Bhangu 2 S Gable 2 S Paszek 1 N Butler

Review of Value for Money

2

As accounting officer, the CEO has responsibility for ensuring that the academy trust delivers good value in the use of public resources. The accounting officer understands that value for money refers to the educational and wider societal outcomes achieved in return for the taxpayer resources received. The accounting officer considers how the trust’s use of its resources has provided good value for money during each academic year, and reports to the board of trustees where value for money can be improved, including the use of benchmarking data where available. The accounting officer for the academy trust has delivered improved value for money during the year by:

Central services providing economies of scale Re-negotiating individual school contracts as BMAT contracts and procurement Through our SCITT (School Centred Initial Teacher Training) training teachers in house both

generating income and outstanding teachers for BMAT Purchase in-house HR system that will contribute to significant cost benefits over the next 3 years

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 ongoing 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 Beal Multi-Academy Trust Limited (formerly known as The Forest Academy Trust) for the year 1 September 2014 to 31 August 2015 and up to the date of approval of the annual report and financial statements.

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

The 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 board of trustees; regular reviews by the Finance and Local Governing Bodies of reports which indicate financial

performance against the forecasts and of major purchase plans, capital works and expenditureprogrammes;

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 board of trustees has considered the need for a specific internal audit function and has decided to appoint Williams Giles as internal auditor.

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

Payroll and recruitment Fixed assets Banking BMAT income Purchasing Income and expenditure BBIH Governance and procedures School trips VAT Budget monitoring/Management accounts Contracts and procurement

On a termly basis, the internal auditor reports to the board of trustees on the operation of the systems of control and on the discharge of the board of trustees' financial responsibilities. As part of the on-going review of the BMAT Finance team and working practices we are continuallystrengthening the monthly management reporting process to enable accurate and timely budget monitoring and Income & Cost analysis whilst improving our financial systems and procedures as the Trust expands.

Governance Statement (continued)

Review of Effectiveness

As accounting officer, the CEO has responsibility for reviewing the effectiveness of the system of internal control. During the year in question the review has been informed by: the work of the internal auditor; the work of the external auditors; the financial management and governance self-assessment process; the work of the executive managers within the academy trust who have responsibility for the

development and maintenance of the internal control framework. The accounting officer has been advised of the implications of the result of their review of the system of internal control by the Audit Committee and Local Governing Bodies and a plan to ensure continuous improvement of the system is in place.

Approved by order of the members of the board of trustees on 8 December 2015 and signed on its behalf, by:


Sue Snowdon Accounting Officer

Statement on Regularity, Propriety and Compliance

As accounting officer of Beal Multi-Academy Trust Limited (formerly known as The Forest Academy Trust) I have considered my responsibility to notify the academy trust board of trustees 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 (2014).

I confirm that I and the academy trust board of trustees are able to identify any material, irregular or improper use of funds by the academy trust, or material non-compliance with the terms and conditions of funding under the academy trust's funding agreement and the Academies Financial Handbook (2014).

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.

S Snowdon Accounting Officer

Date: 8 December 2015


The Trustees (who act as governors of Beal Multi-Academy Trust Limited (formerly known as The Forest Academy Trust) and are also 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 then apply them consistently; observe the methods and principles of the Charities SORP; make judgments and accounting estimates that are reasonable and prudent; prepare the financial statements on the going concern basis unless it is inappropriate to presume

that the charitable company will continue in business.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the 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 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 financial statements may differ from legislation in other jurisdictions.

Approved by order of the members of the board of trustees on and signed on its behalf by:

Councillor Alan Weinberg MBE Chair of Trustees

Independent Auditors' Report to the Members of Beal Multi-Academy Trust Limited (formerly known as The Forest Academy Trust)

We have audited the financial statements of Beal Multi-Academy Trust Limited (formerly known as The Forest Academy Trust) for the year ended 31 August 2015 which comprise the Statement of financial activities, the Balance sheet, the Cash flow statement and the related notes. 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 Academies Accounts Direction 2014 to 2015 issued by the Education Funding Agency.

This report is made solely to the academy's members, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the academy's members those matters we are required to state to them in an Auditors' 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 its members, as a body, for our audit work, for this report, or for the opinion we have formed.

Respective responsibilities of Trustees and auditors

As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the academy 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.

The Trustees have elected for the financial statements to be audited in accordance with the Charities Act 2011 rather than the Companies Act 2006. Accordingly we have been appointed as auditors under section 144 of the Charities Act 2011 and report to you in accordance with regulations made under section 154 of 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 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 academy's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Trustees; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Trustees' 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.

Opinion on 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 2015 and of its

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

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

have been prepared in accordance with the requirements of the Companies Act 2006 and the Academies Accounts Direction 2014 to 2015 issued by the Education Funding Agency.

Independent Auditors' Report to the Members of Beal Multi-Academy Trust Limited (formerly known as The Forest Academy Trust)

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion: the information given in the Trustees' report is inconsistent in any material respect with the

financial statements; or the academy has not kept adequate accounting records; or the financial statements are not in agreement with the accounting records and returns; or we have not received all the information and explanations we require for our audit; or the Trustees were not entitled to take advantage of the small companies' exemption from the

requirement to prepare a Strategic report.

Williams Giles Limited

Chartered Accountants Registered Auditors

12 Conqueror Court Sittingbourne Kent ME10 5BH Date: Williams Giles Limited are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Independent Reporting Accountants' Assurance Report on Regularity to Beal Multi-Academy Trust Limited (formerly known as The Forest Academy Trust) and the Education Funding Agency

In accordance with the terms of our engagement letter dated 19 November 2012 and further to therequirements of the Education Funding Agency (EFA) as included in the Academies Accounts Direction 2014 to 2015, we have carried out an engagement to obtain limited assurance about whether the expenditure disbursed and income received by Beal Multi-Academy Trust Limited (formerly known as The Forest Academy Trust) during the year 1 September 2014 to 31 August 2015 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 Beal Multi-Academy Trust Limited (formerly known as The Forest Academy Trust) and EFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to Beal Multi-Academy Trust Limited (formerly known as The Forest Academy Trust) and 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 Beal Multi-Academy Trust Limited (formerly known as The Forest Academy Trust) and EFA, for our work, for this report, or for the conclusion we have formed.

Respective responsibilities of Beal Multi-Academy Trust Limited (formerly known as The ForestAcademy Trust)'s accounting officer and the reporting accountant

The accounting officer is responsible, under the requirements of Beal Multi-Academy Trust Limited (formerly known as The Forest Academy Trust)'s funding agreement with the Secretary of State for Education dated October 2010, and the Academies Financial Handbook extant from 1 September 2014, 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 2014 to 2015. 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 1 September 2014 to 31 August 2015 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 2014 to 2015 issued by 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's income and expenditure.

The work undertaken to draw to our conclusion includes:

An assessment of the risk of material misstatement and irregularity Testing and review of areas identified through risk assessment including enquiry, inspection and

review, observation and re-performance Review of system controls, policies and procedures in place to ensure compliance with the regularity

regime Consideration of evidence obtained through the work performed as part of our audit in order to

support the regularity conclusion

Limited (formerly known as The Forest Academy Trust) and the Education Funding Agency (continued)

Conclusion

In the course of our work, nothing has come to our attention which suggests that in all material respects theexpenditure disbursed and income received during the year 1 September 2014 to 31 August 2015 have notbeen applied to purposes intended by Parliament and the financial transactions do not conform to the authoritieswhich govern them.

[Input name of Reporting Accountant]

Williams Giles Limited

Chartered AccountantsRegistered Auditors

12 Conqueror CourtSittingbourne Kent ME10 5BH

Date:

Statement of Financial Activities (Incorporating Income and Expenditure Account and Statement of Total Recognised Gains and

Losses) For the year ended 31 August 2015

Incoming resources Incoming resources from

Unrestricted

funds2015

£

funds2015

£

Restrictedfixed asset

funds 2015

£

Total

2015 £

Total

2014 £

generated funds: Transfer of assets on conversion 2 18,520,778 Other voluntary income 2 22,119,575 Activities for generating funds 3 535,348 Investment income 4 12,481

Incoming resources from charitable activities 13,336,550

Total incoming resources 54,524,732

Resources expended Costs of generating funds:

Costs of generating voluntary income

6

194,220

41,650

123,279

Charitable activities 110 17,676,981 12,979,047 Governance costs 7 43,896 51,520

Total resources expended 10 194,330 17,762,527 13,153,846

Net incoming resourcesbefore transfers

84,660

395,723

41,370,886 Transfers between Funds 20 (462,439) -

Net income for the year 84,660 (66,716) 41,370,886

Actuarial gains and losses ondefined benefit pensionschemes

(207,000)

(240,000)

Net movement in funds for the year 41,130,886

Total funds at 1 September 18,002,625

Total funds at 31 August 2015 59,133,511

All of the Academy Trust's activities derive from acquisitions in the current financial period.

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

The notes on pages 30 to 49 form part of these financial statements.

Registered number: 07835788

Balance Sheet As at 31 August 2015

2014

£

Fixed assets Intangible assets

16

20,778

36,362 Tangible assets 17 61,486,531 60,036,230

61,507,309 60,072,592

Current assets Debtors 18 1,433,788 620,605 Cash at bank and in hand 3,762,490 4,191,776

5,196,278 4,812,381

Creditors: amounts falling due within one year 19 (3,322,415) (3,075,462)

Net current assets 1,873,863 1,736,919

Total assets less current liabilities 63,381,172 61,809,511 Defined benefit pension scheme liability 26 (3,002,000) (2,676,000)

Net assets including pension schemeliability

60,379,172

59,133,511

Funds of the academy Restricted funds:

Restricted funds 20 912,097 859,813 Restricted fixed asset funds 20 61,507,309 60,072,592

Restricted funds excluding pension liability 62,419,406 60,932,405 Pension reserve (3,002,000) (2,676,000)

Total restricted funds 59,417,406 58,256,405 Unrestricted funds 20 961,766 877,106

Total funds 60,379,172 59,133,511

The financial statements were approved by the Trustees, and authorised for issue, on Complete 'ACCOUNTSCOMPLETION' section and are signed on their behalf, by:


S SnowdonAccounting Officer


Cash Flow Statement For the year ended 31 August 2015

2015 £

2014 £

Net cash flow from operating activities 22 12,140 2,174,301 Returns on investments and servicing of finance 23 21,013 12,481 Capital expenditure and financial investment 23 (462,439) (200,764) Cash transferred on conversion to an academy trust - 822,778

(Decrease)/Increase in cash in the year

All of the cashflows are derived from acquisitions in the current financial period.

Reconciliation of Net Cash Flow to Movement in Net FundsFor the year ended 31 August 2015

2015 £

2014 £

(Decrease)/Increase in cash in the year (429,286) 2,808,796

Movement in net funds in the year (429,286) 2,808,796 Net funds at 1 September 2014 4,191,776 1,382,980

Net funds at 31 August 2015 3,762,490 4,191,776


Notes to the Financial StatementsFor the year ended 31 August 2015

ACCOUNTING POLICIES

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention, with theexception of investments which are included at market value. The financial statements have beenprepared in accordance with the Statement of Recommended Practice (SORP), 'Accounting andReporting by Charities' published in March 2005, the Academies Accounts Direction 2014 to 2015issued by EFA, applicable accounting standards and the Companies Act 2006.

Company status

The academy is a company limited by guarantee. The members of the company are the Trusteesnamed on page 1. In the event of the academy being wound up, the liability in respect of theguarantee is limited to £10 per member of the academy.

Fund accounting

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

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

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

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

Incoming resources

All incoming resources are included in the Statement of Financial Activities when the academy hasentitlement to the funds, certainty of receipt and the amount can be measured with sufficientreliability. For legacies, entitlement is the earlier of the academy being notified of an impendingdistribution or the legacy being received.

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

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

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

Sponsorship income provided to the academy which amounts to a donation is recognised in theStatement of Financial Activities in the period in which it is receivable, where there is certainty ofreceipt and it is measurable.


ACCOUNTING POLICIES (continued)

The value of donated services and gifts in kind provided to the academy are recognised at theiropen market value in the period in which they are receivable as incoming resources, where thebenefit to the academy can be reliably measured. An equivalent amount is included as expenditureunder the relevant heading in the Statement of Financial Activities, except where the gift in kind wasa fixed asset in which case the amount is included in the appropriate fixed asset category anddepreciated over the useful economic life in accordance with the academy's policies.

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

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

Resources expended

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

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

Charitable activities are costs incurred in the academy's educational operations.

Governance costs include the costs attributable to the academy's compliance with constitutional andstatutory requirements, including audit, strategic management and Trustees' meetings andreimbursed expenses.

All resources expended are inclusive of irrecoverable VAT.

Going concern

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

Intangible fixed assets and amortisation

Goodwill is the difference between amounts paid on the acquisition of a business and the fair valueof the identifiable assets and liabilities. It is amortised to the Statement of financial activities over itsestimated economic life. Software licences are the difference between amounts paid on the acquisition of Software licencesand the fair value of the identifiable assets and liabilities. It is amortised to the Statement of financialactivities over its estimated economic life.



Tangible fixed assets and depreciation

All assets costing more than £1,000 are capitalised.

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

The Forest Academy The valuation for leasehold property is taken from the Drivers Jonas Deloitte desktop valuationcompleted for the EFA. The basis of the value is Fair Value, as defined by the International FinancialReporting Standards (IFRS). No value for land had been included.

Beal High School The valuation for leasehold property on conversion is taken from 75% of the insurance valuationplaced on the property. This is based on depreciated replacement cost. In addition to thissubsequent buildings constructed post conversion have been included based on build cost providedby the London Borough of Redbridge or costs paid by the academy. No value for land had beenincluded.

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at ratescalculated to write off the cost of fixed assets, less their estimated residual value, over theirexpected useful lives on the following bases:

L/Term Leasehold Property 2% Straight line Plant and machinery 10% Reducing balance Motor vehicles 20% Straight line Fixtures and fittings 10% Reducing balance Computer equipment 20% Straight line

Operating leases

Rentals under operating leases are charged to the Statement of financial activities on a straight linebasis over the lease term.

Taxation

The academy is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.Accordingly, the academy is potentially exempt from taxation in respect of income or capital gainsreceived within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains areapplied exclusively to charitable purposes.

Pensions



Retirement benefits to employees of the academy 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 areheld separately from those of the academy.

The TPS is an unfunded scheme and contributions are calculated so as to spread the cost ofpensions over employees' working lives with the academy in such a way that the pension cost is asubstantially level percentage of current and future pensionable payroll. The contributions aredetermined by the Government Actuary on the basis of quinquennial valuations using a prospectivebenefit method. As stated in note 26, the TPS is a multi-employer scheme and the academy isunable to identify its share of the underlying assets and liabilities of the scheme on a consistent andreasonable basis. The TPS is therefore treated as a defined contribution scheme and thecontributions recognised as they are paid each year.

The LGPS is a funded scheme and the assets are held separately from those of the academy inseparate trustee administered funds. Pension scheme assets are measured at fair value andliabilities are measured on an actuarial basis using the projected unit method and discounted at arate equivalent to the current rate of return on a high quality corporate bond of equivalent term andcurrency to the liabilities. The actuarial valuations are obtained at least triennially and are updated ateach balance sheet date. The amounts charged to operating surplus are the current service costsand gains and losses on the 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 benefitshave vested. If the benefits have not vested immediately, the costs are recognised over the periodvesting occurs. The expected return on assets and the interest cost are shown as a net financeamount of other finance costs or credits adjacent to interest. Actuarial gains and losses arerecognised immediately in other gains and losses.

Donated services and gifts in kind

The value of donated services and gifts in kind provided to the academy trust are recognised at theiropen market value in the period in which they are receivable as incoming resources, where thebenefit to the academy trust can be reliably measured. An equivalent amount is included asexpenditure under the relevant heading in the Statement of Financial Activities, except where the giftin kind was a fixed asset in which case the amount is included in the appropriate fixed assetcategory and depreciated over the useful economic life in accordance with academy trust‘s policies.

2. VOLUNTARY INCOME

Unrestricted

Restricted

Total

Total

2015

2015 £

2015 £

2014

£ Transfer of assets on conversion 18,520,778

Donations

2,662

2,344 School trips 28,836 37,231 Capital donation - 22,080,000

Subtotal

31,498 22,119,575

Voluntary income

31,498 40,640,353


3. ACTIVITIES FOR GENERATING FUNDS

Unrestricted

Restricted

Total

Total

2015 £

2015 £

2015

£

2014

£ Lettings 39,954 39,954 28,627 Teaching Alliance income 22,600 22,600 19,200 School fund income 215,361 215,361 59,810 Other income 258,226 258,226 60,662 Catering income 430,158 430,158 158,946 NELTA income

Photocopying/printing income

474,384 23,461

474,384 23,461

208,103

535,348

4. INVESTMENT INCOME

Unrestricted

Restricted

Total

Total

2015 £

2015 £

2015

£

2014

£ Short term deposits 21,013 21,013 12,481

FUNDING FOR ACADEMY'S EDUCATIONAL OPERATIONS

Unrestricted Restrictedfunds 2015

£

Total

2015 £

Total

2014 £

DfE/EFA revenue grants

General Annual Grant (GAG) 14,299,691 14,299,691 10,477,157 Start up grants 138,161 138,161 269,248 Other DfE/EFA grants 174,779 174,779 84,844 Other government grants 1,708,304 1,708,304 609,612 Devolved formula capital 56,882 56,882 51,335 Pupil Premium 599,650 599,650 479,321 Other capital funding 2,533,831 2,533,831 1,365,033

13,336,550


COSTS OF GENERATING VOLUNTARY INCOME

Unrestrictedfunds2015

funds2015

£

Total

2015 £

Total

2014 £

School trip expenses 41,650 42,840 Other voluntary fund expenses 194,220 80,439

123,279

7. GOVERNANCE COSTS

Unrestricted

Restricted

Total

Total

2015 £

2015 £

2015

£

2014

£ Auditor remuneration 33,005 33,005 32,250 Legal and professional fees 10,891 10,891 19,270

51,520

8. DIRECT COSTS

Educational

Total

Total operation

2015

£ 2014

£ Educational supplies 191,734 170,971 Examination fees 283,116 231,702 Staff development 22,500 25,633 Educational consultancy 262,809 128,752 Other direct costs 88,759 55,323 Computer costs 166,922 131,329 Staff restructuring costs 44,500 11,000 Agency supply 107,728 151,935 Wages and salaries 9,567,480 9,567,480 6,442,607 National insurance 772,751 484,011 Pension cost 1,235,883 1,235,883 1,152,401 Depreciation 1,618,435 1,618,435 1,133,531

10,119,195


9. SUPPORT COSTS

Educational

Total

Total operation

2015

£ 2014

£ LGPS cost 40,000 48,000 Recruitment and support 66,682 35,282 Maintenance of premises and equipment 146,055 146,055 232,649 Cleaning 358,081 358,081 208,929 Rent & rates 165,481 165,481 86,803 Light & heat 338,957 338,957 195,683 Insurance 75,323 89,285 Security & transport 33,333 23,121 Catering 439,443 439,443 215,953 Bank charges 1,754 2,338 Computer costs 145,757 145,757 85,916 Printing, postage and stationery 183,456 183,456 88,520 Other support costs 488,264 488,264 308,724 Wages and salaries 1,900,380 1,900,380 943,404 National insurance

Pension cost 122,158 427,785

122,158 427,785

73,132 222,113

2,859,852


10. RESOURCES EXPENDED

Non Pay

Staff costs

2015 Other costs

2015

Total

2015

Total

2014 £ £ £ £

Costs of generating voluntary income 235,870 235,870 123,279

Costs of generating funds 235,870 235,870 123,279

Direct costs

11,728,342

2,634,275

14,362,617

10,119,195

Support costs 2,450,323 2,482,586 4,932,909 2,859,852

Charitable activities 14,178,665 5,116,861 19,295,526 12,979,047

Governance 43,896 43,896 51,520

14,178,665 5,396,627 19,575,292

13,153,846

Included within resources expended are the following transactions. Individual transactions exceeding £5,000 are identified separately:

Total £ Individual items above £5,000 Amount £ Reason

Ex-gratia/compensation payments Compensation payment made to former employee

Compensation payment made to former employee

NET INCOMING RESOURCES

This is stated after charging:

Depreciation of tangible fixed assets:

2014 £

- owned by the charity Auditor remuneration Amortisation of software license 15,584


12. STAFF

a. Staff costs

Staff costs were as follows:

2015 £

2014 £

Wages and salaries 11,467,860 7,386,011 Social security costs 894,909 557,143 Other pension costs (Note 26) 1,663,668 1,374,514

14,026,437 9,317,668 Supply teacher costs 107,728 151,935 Compensation payments 44,500 11,000

14,178,665 9,480,603

Staff severance payments

Included in staff restructuring costs are non-statutory/non-contractual severance payments totalling £44,500 (2013: £11,000). Individually, the payments were: £20,000, £18,250, £4,000 and £2,250.

Staff numbers

The average number of persons employed by the academy during the year expressed as full timeequivalents was as follows:

209 197 Admin and Support 114 117

20 14

Higher paid staff

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

In the band £60,001 - £70,000 0 In the band £70,001 - £80,000 0 In the band £80,001 - £90,000 1 In the band £90,001 - £100,000 1 In the band £100,001 - £110,000 0 In the band £140,001 - £150,000 0

Six of the above employees participated in the Teachers' Pension Scheme. One employee participated inthe Local Government Pension Scheme.


TRUSTEES' REMUNERATION AND EXPENSES

One or more Trustees has been paid remuneration or has received other benefits from an employmentwith the academy trust. The Principal and other staff Trustees only receive remuneration in respect ofservices they provide undertaking the roles of principal and other staff members under their contracts ofemployment, and not in respect of their role as Trustees, The value of Trustees' remuneration and otherbenefits was as follows:

S Snowdon 145,000-150,000 80,000-85,000 S Snowdon - Employer's Pension contributions 20,000-25,000

During the year, travel and subsistence expenses totally £1,995 were reimbursed to three Trustees(2014: 3 ).

TRUSTEES' AND OFFICERS' INSURANCE

In accordance with normal commercial practice the academy has purchased insurance to protectTrustees and officers from claims arising from negligent acts, errors or omissions occurring whilst onacademy business. The insurance provides cover up to £5,000,000 on any one claim and the cost for theyear ended 31 August 2015 was £1,340 (2014 - £2,653). The cost of this insurance is included in the totalinsurance cost.

15. OTHER FINANCE INCOME

2015 £

2014 £

Expected return on pension scheme assets 216,000 140,000 Interest on pension scheme liabilities (256,000) (188,000)


INTANGIBLE FIXED ASSETS

Cost

£

At 1 September 2014 and 31 August 2015 77,919

Amortisation At 1 September 2014 41,557 Charge for the year 15,584

At 31 August 2015 57,141

Net book value At 31 August 2015 20,778

At 31 August 2014 36,362

TANGIBLE FIXED ASSETS

L/Term

Property

Plant and

Motor

Fixtures andfittings

Computer

£

At 1 September 2014 59,206,441 61,924,728 3,053,152

At 31 August 2015 62,054,644 628,293 12,785 774,087 1,508,071 64,977,880

Depreciation At 1 September 2014 1,427,308 114,724 6,819 98,023 241,624 1,888,498 Charge for the year 1,179,716 51,357 2,557 67,606 301,615 1,602,851

At 31 August 2015 2,607,024 166,081 9,376 165,629 543,239 3,491,349

Net book value At 31 August 2015 59,447,620 462,212 3,409 608,458 964,832 61,486,531

At 31 August 2014 57,779,133

513,569

5,966

633,993

1,103,569

60,036,230


18. DEBTORS

2015

2014 £ £ Trade debtors 14,863 VAT debtor 202,254 317,293 Other debtors 921,534 Prepayments and accrued income 295,137 302,955

19. CREDITORS: Amounts falling due within one year

2015 £

2014 £

Trade creditors 683,664 1,131,895 Other taxation and social security 1,189,953 467,904 Other creditors 921,504 671,226 Accruals and deferred income 527,294 804,437

3,322,415 3,075,462

Deferred income Deferred income at 1 September 2014 88,333 Resources deferred during the year 104,697 Amounts released from previous years (88,333)

Deferred income at 31 August 2015 104,697

At the balance sheet date the Academy Trust was holding funds received in advance for catering income,and reimbursements of rates and insurance in respect of the following financial year.


STATEMENT OF FUNDS

Brought Incoming Resources Transfers Gains/ Carried Forward resources Expended in/out (Losses) Forward

£ £ £ £ £ £

Unrestrictedfunds

Unrestricted funds 961,766

Restricted funds

General Annual Grant (GAG) 597,092 17,721,075 (17,356,733) 623,968

NELTA 137,748 437,175 (286,794) 288,129 Other generated

funds Pension reserve

124,973 (2,676,000)

- (3,002,000)

(2,089,903)

Restricted fixed asset funds

Assets held fordepreciation

60,072,592

2,590,713

(1,618,435)

61,507,309

Total restrictedfunds

58,256,405

20,748,963

(19,380,962)

59,417,406

Total of funds 59,133,511 21,027,953 (19,575,292)

60,379,172

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

Unrestricted funds are applied to the general work of the academy to support activities inside and outsidethe curriculum.

Restricted funds are applied specifically in accordance with the rules of each grant and support theeducation provision delivered by the academy.

Restricted fixed asset funds are applied to the maintenance and improvement of all the academy’s fixedassets.

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

Analysis of academies by fund balance

Fund balances at 31 August 2015 were allocated as follows:

Total £

Restricted fixed asset fund 61,507,309 Pension reserve (3,002,000)

58,505,309


STATEMENT OF FUNDS (continued)

Analysis of academies by cost

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

Total £

SUMMARY OF FUNDS

Incoming

Expended

in/out

Gains/

Carried

£

General funds 961,766 Restricted funds (2,089,903) Restricted fixed

asset funds 61,507,309

60,379,172

ANALYSIS OF NET ASSETS BETWEEN FUNDS

Restricted Unrestricted

funds2015

funds2015

£

fixed assetfunds2015

£

Total

2015

Total

2014 £

Tangible fixed assets 61,486,531 61,486,531 60,036,230 Intangible fixed assets 20,778 20,778 36,362 Current assets 990,784 4,205,494 5,196,278 4,812,381 Creditors due within one year (29,018) (3,293,397) (3,322,415) (3,075,462) Provisions for liabilities and

charges - (3,002,000) (3,002,000) (2,676,000)

59,133,511


NET CASH FLOW FROM OPERATING ACTIVITIES

2014

£ Net incoming resources before revaluations 1,452,661 41,370,886Returns on investments and servicing of finance Transfer of assets on conversion Pension liability on conversion 1,907,000 Amortisation of intangible fixed assets 15,584 Depreciation of tangible fixed assets 1,117,947 Capital grants from DfE (1,416,368) Increase in debtors (479,648) Increase in creditors 2,121,159 Capital donation (22,080,000) FRS 17 adjustments 58,000

Net cash inflow from operations 2,174,301

ANALYSIS OF CASH FLOWS FOR HEADINGS NETTED IN CASH FLOW STATEMENT

Returns on investments and servicing of finance Interest received 12,481

2015

£

2014

£ Capital expenditure and financial investment Purchase of tangible fixed assets (3,053,152) (23,697,132) Capital grants from DfE 2,590,713 1,416,368 Capital donation - 22,080,000

Net cash outflow capital expenditure (200,764)

ANALYSIS OF CHANGES IN NET FUNDS

1 September Cash flow 31 August 2015

£ Cash at bank and in hand: 3,762,490

Net funds 3,762,490


CONTINGENT LIABILITIES

During the period of the funding agreement, should any asset for which a capital grant was received besold or otherwise disposed of, in the event of the Academy not reinvesting the proceeds, it will berequired to pay the grant related proportion of the proceeds to the EFA.

Should the funding agreement be terminated for any reason, the Academy shall repay to the EFA thecurrent value of the academy’s land and buildings and other assets, to the extent that such assets werefunded by sums received from the EFA.

PENSION COMMITMENTS

The academy's employees belong to two principal pension schemes: the Teacher's Pension Scheme forEngland and Wales (TPS) for academic and related staff; and the Local Government Pension Scheme(LGPS) for non-teaching staff, which is managed by The London Borough of Redbridge. Both aredefined benefit schemes.

The pension costs are assessed in accordance with the advice of independent qualified actuaries. Thelatest actuarial valuation of the TPS related to the period ended 31 March 2012 and of the LGPS 31August 2014.

There were no outstanding or prepaid contributions at either the beginning or the end of the financialyear.

Teachers' Pension Scheme

Introduction

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

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

Valuation of the Teachers’ Pension Scheme

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

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

administration charge (currently 14.1%); total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for

service to the effective date of £191,500 million, and notional assets (estimated future contributionstogether with the notional investments held at the valuation date) of £176,600 million giving anotional past service deficit of £14,900 million

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


PENSION COMMITMENTS (continued)

the assumed real rate of return is 3.0% in excess of prices and 2% in excess of earnings. The rate

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

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

The pension costs paid to TPS in the period amounted to £575,000 (2014: £323,000).

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

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

Local Government Pension Scheme

The LGPS is a funded defined benefit scheme, with assets held in separate trustee-administered funds.The total contribution made for the year ended 31 August 2015 was £624,000, of which employer'scontributions totalled £496,000 and employees' contributions totalled £128,000. The agreed contributionrates for future years are 23.1% for employers and var% for employees.

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

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

Expectedreturn at31 August

2015 %

Fair value at31 August

2015 £

Expectedreturn at31 August

2014 %

Fair value at31 August

2014 £

Equities 3.70 2,505,000 6.30 2,275,000 Bonds 3.70 1,503,000 3.10 1,177,000 Property 3.70 455,000 4.50 353,000 Cash 3.70 91,000 3.30 118,000

Total market value of assets 4,554,000 3,923,000 Present value of scheme liabilities (7,556,000) (6,599,000)

Deficit in the scheme (3,002,000) (2,676,000)

The amounts recognised in the Balance sheet are as follows:

2015 £

2014 £

Present value of funded obligations (7,556,000) (6,599,000) Fair value of scheme assets 4,554,000 3,923,000

Net liability (3,002,000) (2,676,000)



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

2015 £

2014 £

Current service cost (575,000) (323,000) Interest on obligation (256,000) (188,000) Expected return on scheme assets 216,000 140,000

Total (615,000) (371,000)

Actual return on scheme assets 60,000 351,000

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

2015 £

2014 £

Opening defined benefit obligation 6,599,000 1,468,000 Current service cost 575,000 323,000 Interest cost 256,000 188,000 Contributions by scheme participants 128,000 82,000 Actuarial Losses 51,000 313,000 Benefits paid (53,000) (43,000) Liabilities assumed in a business combination - 4,268,000

Closing defined benefit obligation 7,556,000 6,599,000

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

2015 £

2014 £

Opening fair value of scheme assets 3,923,000 997,000 Expected return on assets 216,000 140,000 Actuarial gains and (losses) (156,000) 73,000 Contributions by employer 496,000 313,000 Contributions by employees 128,000 82,000 Benefits paid (53,000) (43,000) Assets acquired in a business combination - 2,361,000

4,554,000 3,923,000

The cumulative amount of actuarial gains and losses recognised in the Statement of total recognisedgains and losses was £-2,447,000 (2014 - £-2,224,000).

The academy expects to contribute £496,000 to its Defined benefit pension scheme in 2016.



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

EquitiesBondsPropertyCash

55.00 % 33.00 % 10.00 %

2.00 %

58.00 % 30.00 %

9.00 % 3.00 %

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

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

3.70 % 3.70 % 3.50 % 2.60 %

3.70 % 5.10 % 3.40 % 2.60 %

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

Retiring today 2014

22.0 24.1 24.1

Retiring in 20 years 24.3 24.3 26.7 26.7

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

Defined benefit pension schemes

2013 £

Defined benefit obligation (1,468,000) Scheme assets 997,000

(471,000)

Experience adjustments on scheme liabilities (33,000) Experience adjustments on scheme assets 25,000


LEASE COMMITMENTS

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

Expiry date:

2014 £

Within 1 year 29,311 Between 2 and 5 years 63,751

RELATED PARTY TRANSACTIONS

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

One of the trustees, A Weinberg, is a councillor for the London Borough of Redbridge. The Academyuses various services from the London Borough of Redbridge as part of their normal course of business.

These transactions were conducted on normal commercial terms, at arm’s length without the exercise ofany influence by the related party involved.

In entering into the transactions above, the trust has complied with the requirements of the EFA’sAcademies Financial Handbook.

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