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LAKES ACADEM¡ES TRUST
(A company limited by guarantee)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PER¡OD ENDED 31 AUGUST 20'17
LAKES ACADEMIES TRUST
(A company limited by guarantee)
CONTENTS
Reference and administrative details
Trustees'report
Governance statement
Statement on regularity, propriety and compliance
Statement of Trustees' responsibilities
lndependent auditor's report on the financial statements
lndependent reporting accountant's assurance report on regularity
Statement of financial activities incorporating income and expenditure account
Balance sheet
Statement of cash flows
Notes to the financial statements
Page
1-2
3 -22
23 -26
27
28
29 -31
32-33
34
35
36
37-59
LAKES ACADEMIES TRUST
(A company limited by guarantee)
REFERENCE AND ADM¡NISTRATIVE DETAILSFOR THE PERIOD ENDED 31 AUGUST 2OI7
Members
K Emms (appointed 10 June 2016)J Hakes (appointed 10 June 2016)S Bailey (appointed 10 June 2016)E J Sharp (appointed 10 June 2016)K Greenhalgh (appointed 10 June 2016)
Trustees
M Bzezinska (appointed 10 June 2016)L Crudge, Chair of Trustees (appointed 22'February 2016)A Draper, Chief Executive Officer (appointed 10 June 2016)K Emms, Vice Chair (appointed 10 June 2016)R M Leighton (appointed l0 June 2016)K L Roberts (appointed 10 June 2016)E J Sharp (appointed 10 June 20'16)K Greenhalgh (appointed 10 June 2016, resigned 1 December2016)
Company registered number
10225813
Gompany name
Lakes Academies Trust
Principal and registered office
C/O Water Hall Primary SchoolFern GroveBletchleyMilton KeynesBuckinghamshireMK2 3QF
Chief executive officer
A Draper
Senior management team
A Draper, Chief Executive OfficerK Roberts, Director of EducationS King, Business DirectorB Suckling, Chief Financial OfficerJ Ragozzino, Director of lnclusionE Burrows, Director of Family Support Services
Page 1
LAKES ACADEMIES TRUST
(A company limited by guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE ACADEMY, ITS TRUSTEES AND ADVISERSFOR THE PERIOD ENDED 3I AUGUST 2OI7
Advisers (continued)
lndependent auditor
Crowe Clark Whitehill LLPCarrick HouseLypiatt RoadCheltenhamGL5O 2QJ
Solicitors
Browne JacobsonVictoria HouseVictoria SquareBirmingham82 4BU
Bankers
Lloyds Bank plcBletchleyMilton KeynesMK2 2DW
Page2
LAKES ACADEMIES TRUST
(A company limited by guarantee)
TRUSTEES'REPORTFOR THE PERIOD ENDED 3I AUGUST 2017
The Trustees present their annual report together with the financial statements and auditor's report of thecharitable company for the period 10 June 2016 to 31 August 2O17 . The Annual report serves the purposes ofboth a Trustees' report, and a Directors' report under company law.
Structure, governance and management
a. Gonstitution
The academy is a charitable company limited by guarantee and an exempt charity.
The charitable company's Memorandum of Association is the primary governing document of the academy trust
The Trustees of Lakes Academies Trust are also the directors of the charitable company for the purpose ofcompany law.
The charitable company is known as Lakes Academies Trust. There were two academies within the trust on 31
August 2017:
Water Hall Primary School - the sponsor academy. Pupil capacity 315 Plus 26 FTE Nursery places and aroll of 290 plus 16 Nursery (5 October 2017).
Knowles Primary School - a converted academy which joined the trust on 1 May 2017. Pupil Capacity 570and a roll of 438 (5 October 2017).
The trust has a pupil capacity of 885 plus 26 FTE Nursery places and a roll of 728 at the census on 5 October2017.
Details of the Trustees who served during the period are included in the Reference and Administrative Details onpage '1.
b. Members'liability
Each member of the charitable company undertakes to contribute to the assets of the charitable company in theevent of it being wound up while they are a member, or within one year after they cease to be a member, suchamount as may be required, not exceeding f 10 for the debts and liabilities contracted before they ceased to be amember.
c. Trustees' indemnities
Trustees benefit from indemnity insurance purchased at the Academy Trust's expense to cover the liability of theTrustees which by virtue of any rule of law would otherwise attach to them in respect of any negligence, defaultor breach of trust or breach of duty of which they may be guilty in relation to the Academy Trust, provided thatany such insurance shall not extend to any claim arising from any act or omission which the Trustees knew to bea breach of trust or breach of duty or which was committed by the Trustees in reckless disregard to whether itwas a breach of trust or breach of duty or not and provided also that any such insurance shall not extend to thecosts of any unsuccessful defence to a criminal prosecution brought against the Trustees in their capacity asDirectors of the Academy Trust. The limit of this indemnity is Ê5,000,000.
Page 3
LAKES ACADEMIES TRUST
(A company limited by guarantee)
TRUSTEES' REPORT (continued)FOR THE PERIOD ENDED 31 AUGUST 2017
d. Method of recruitment and appointment or election of Trustees
Under the articles of association, the number of trustees shall not be less than three and is not subject to anymaximum (unless othen¡uise determined by ordinary resolution). The trust shall have the following trustees :
. Up to four trustees appointed by members by ordinary resolution.¡ A minimum of two Parent trustees if no Local Governing Bodies are established, or if no provision is made
for at least two Parent Local Governors on each established Local Governing Board. Parent trustees are
elected but if the number, standing for election is less than the number of vacancies, they may be
appointed by trustees. Elected or appointed Parent trustees must be a parent, or an individual exercisingparental responsibility, of a registered pupil at one or more of the academies at the time when they are
elected or appointed. Trustees make all necessary arrangements for an election and where contested, the
election is held by secret balloto The Chief Executive Officer, providing they agree so to act.. Any number of Co-opted trustees
The total number of trustees who are employees of the academy, shall not exceed one third of the total numberof trustees.
Trustees are appointed for a four year period, except this time limit does not apply to ex officio posts. Subject toremaining eligible to be a particular type of trustee, any trustee can be reappointed or re-elected at a GeneralMeeting.
When appointing new trustees, the Board will give consideration to the skills and experience mix of existingtrustees in order to ensure there are necessary skills to contribute fully to the trust's development.
e. Policies and procedures adopted for the induction and training of Trustees
This is dependent upon experience, but all new trustees are immediately given access to an electronic foldercontaining key governance information of which the DfE Governors' Handbook is a key document and trusteesformally adopt its provisions annually. All new trustees meet with the Chair of Trustees and Chief ExecutiveOfficer and are also given an introductory tour of the academies by the Headteachers.The trust subscribes to an
e-learning training provider and all trustees are required to undertake appropriate and ongoing online trainingand record their activities. Safeguarding training is an immediate prerequisite for all new trustees. All trustees areprovided with copies of policies, procedures, minutes, accounts, budgets, plans and other documents in order toundertake their role. They are expected to undertake and record governor visits and are required to complete an
annual skills audit in order that the Board may identify any gaps in expertise.
f. Organisational structure
The Board of Trustees meets at least once every term. The Board establishes an overall framework for trustgovernance which it sets out in its Scheme of Delegations. lt determines membership, terms of reference andprocedures of Committees, Local Governing Bodies and any ad-hoc working groups established to perform
specific tasks over a given timescale.
Trustees are ultimately responsible for the strategic direction of the Trust and its overarching policies. TheTrust's Scheme of Delegation sets out parameters for decision-making by its Committees, Local GoverningBodies and CEO.
Trustees are responsible for decisions in relation to:. Changes to the status or constitution of the Academy and its committee structure.. Appointment or removal of the Chair and/or Vice-Chair, the Headteachers and the Clerk to Trustees.. Approval ofthe budget and statutoryaccounts.
Page 4
LAKES ACADEMIES TRUST
(A company Iimited by guarantee)
TRUSTEES' REPORT (continued)FOR THE PERIOD ENDED 3I AUGUST 2017
Determining trust-wide policies, the Academy Development Plan, key performance indicators, curriculumand standards.
The Board receives reports, including policies, from its Committees for ratification. lt monitors the activities of itsCommittees through the minutes of the meetings and through reports of the Committee Chairs at trusteemeetings. lt has two Committees - the Curriculum Committee and the Finance, Administration, Planning andPersonnel Committee. Both Committees meet a minimum of once a term.
Curriculum GommitteeThe Curriculum Committee reviews, monitors and assists in the areas of teaching and learning, curriculumplanning, target-setting and assessment. lt contributes towards the preparation of the School Development Planand monitors school improvement. lt makes recommendations on curriculum related policy and providesinformation to the governing body about how the curriculum is taught, evaluated and resourced. lt monitors andevaluates the academies' examination results and assists in the preparation of information required to bepublished online.
Finance, Administration & Personnel (FAP) GommitteeThe FAP Committee monitors, evaluates and reviews regulatory compliance and performance in all areasrelating to financial management and personnel. lt oversees audits and budget preparation, determines staffingand salaries and has responsibility for health and safety policies and compliance. lt also contributes towards thepreparation of the trust's annual improvement and management plans. lt makes decisions on pupil admissionwhen appropriate.
Senior ManagementThe senior managers of Lakes Academies Trust are
Tony DraperKaren RobertsBeverly SucklingSam KingEmma BurrowsJac Ragozzino
Knowles Primary SchoolSarah RiceRichard JenkinsSarah Hilton
Chief Executive Officer - Accounting OfficerDirector of EducationChief Finance OfficerDirector of BusinessDirector of Family Support ServicesDirector of lnclusion
lnterim Headteacherlnterim Deputylnclusion Manager
The Board has devolved responsibility for day to day management of each Academy to the Headteacher andSenior Leadership Team (SLT).The SLT consists of
Water Hall Primary SchoolRebecca McGuire HeadteacherJohn Shaw Deputy HeadLeah Dobson Assistant Head
The senior management controls the trust at an executive level, implementing the policies laid down by thetrustees and reporting back to them. A Scheme of Financial Delegation, agreed annually by trustees, sets outlevels of authorised spending within agreed budgets. The LGB is responsible for appointing new SLT membersand reporting decisions back to trustees. The Headteacher is responsible for the appointment of all other staff.
Page 5
LAKES ACADEMIES TRUST
(A company limited by guarantee)
TRUSTEES' REPORT (continued)FOR THE PERIOD ENDED 31 AUGUST 2OI7
g. Pay policy for key management personnel
Trustees have agreed pay and performance management policies for all staff and these are reviewed annually.The Trust uses the School Teachers Pay and Conditions document. Trustees delegate the day to daymanagement of the policy to the CEO in consultation with the Chair of the Trustees. The CEO reports salaryrecommendations to the FAP Committee and upon agreement, the report is then passed to trustees forapproval.
The Trust delegates two Trustees, advised by an external advisor appointed by the trust, to carry out theappraisal review for the CEO. Trustees receive a salary recommendation from the FAP Committee for the CEO,based on the outcome of the review and the recommendation of the Chair of Trustees. The same trustees, in
consultation with the CEO, undertake the review of the Director of Education. Trustees receive a
recommendation from the FAP based on the outcome of the review and the proposition of the CEO.
The CEO reports annual recommendations to the FAP Committee, in respect of SLT salaries, based onoutcomes of performance reviews. lf agreed, the report is passed to trustees for approval.
Objectives and Activities
a. Objects and aims
The principal object and activity of the charitable company is the operation of Lakes Academies Trust to provideeducation and care for pupils of different abilities between the ages of 4 and 1 1 .
ln accordance with the articles of association the charitable company has adopted a Funding Agreementapproved by the Secretary of State for Education. The Funding Agreement specifies, amongst other things:. that the Trust has a curriculum satisfying the requirements of section 7B of EA 2002 (balanced and
broadly based curriculum);. that it provides education for pupils of different abilities;. and that it provides education for pupils who are wholly or mainly drawn from the area in which the school
is situated.
The aims of Lakes Academies Trust are:. Have high calibre staff in all roles that provide outstanding educational outcomes for children. Maximise learning potential by viewing the whole day as an opportunity for progress.. Be a beacon of excellence for the community.. Have a school improvement model that facilitates career development for all staff.
Page 6
LAKES ACADEMIES TRUST
(A company limited by guarantee)
TRUSTEES' REPORT (continued)FOR THE PERIOD ENDED 31 AUGUST 2OI7
b. Objectives, strategies and activities
Area forDevelopment
Outcome Review
Maths 70o/o o'Í KS2childrenachieveA.R.E.
(65% Re,Wr& Macombinedat ARE)
¡ All Children are assessed on entry and any intervention to plug Gaps in thefirst six weeks after being admitted.
¡ All outcomes including KS1 outcomes were collected on all Mobile childrenallowing the teachers the to have some understanding of previousassessments to use as a possible baseline.
r Target children identified and tracked through pupil progress meetings,observations and at team level.
r Daily Times tables learnt in school.¡ All staff had training in Singapore Maths so everyone knew what it needed
to look like and what it looks like here at Water Hall. This is having a hugeimpact on learning across the school.
a
Year1
Year2
Year3
Year4
Year5
Year6
o/o atARE
76% B3o/o 67o/o 46% 39% 97%
¡ Children have Follow-up of learning in Assessment Folders for Maths 2/3weeks after it has been taught.
r Pupil Progress Meetings - looking at planning (before session starts).r Learning Techniques- Working memory.o Trio's focus is Teaching and learning in Maths.
o How are we teaching times tables?o Test practise / technique - lnvestigate the different tests that are out there.
PEARSON are key as they do the SATs.o Different types of assessments - Moderation / comparative judgements.o Paired Observations - one looking at teaching and one tracking target
children.o Marking and Feedback developed.To explore further to inform 201 7 ' 2018 SDPAnalysis of Year 6 Datar Dig down fudher into the mobile children and the analysis.¡ Static children- where are the GAPs and percentage- Broken down further
Analysis of Year 2 datao Analysis of the questions that the children got wrong.e To of children not achieving particular questions.
Analysis of the NFER tests 3, 4, 5.o Analysis of vulnerable groups.e lnterventions planned and reviewed at 6 week intervals were
identified.o Pupil Progress and work sampling to focus on interventions and
outcomes
Page 7
LAKES ACADEMIES TRUST
(A company limited by guarantee)
TRUSTEES' REPORT (continued)FOR THE PERIOD ENDED 3I AUGUST 2017
Reading KS2 66%A.R.E.
(65% Re,Wr& Macombined atARE)
Whole School¡ Evidence of a range of SAT's style questions given to children during Reading
sessions and in guided reading follow ups across KS1 and KS2.o Evidence of vocabulary and language used in class consistent with that in the
different questions the children are exposed to in SATS. Evident across all Keystages but more evident in Year's 2 and 6.
o ln year groups where reading attainment was lower, targeted reading groupswere set up in order to further differentiate and improved whole class pravision.
o ELKLAN- Whole school training 1815117 and 2315117. Teachers and support staffintroduced to teaching and learning strategies to suppotl the development oflanguage and communication in all areas of learning.
o Children identified for specific language and communication interventions acrossthe school.
¡ Communication friendly classrooms - This was was delivered to teachers andClassroom practitioners as a staff meeting to give ideas and tips on how todevelop our communication friendly classrooms- 18.05.17 delivered by MelissaMcilhiney, SALT.
BRP training
o Level 1, 2c, mobile children and children with low attendance have been identifiedas target children and other children who are not making progress- Childrenidentified for interventions.
o Staff recorded in registers daily about children who haven't brought book bagsinto school. Follow up phone calls made or passed onto FST.
o Reading journals/journals signed and commented on by teacher every week andcompleted by children daily. Followed up with parents/ carers if not completed.
o lnvestigate BRP as booster for able readers.o Stextsaday.o Marking and Feedback has continued to be developed at team meetings and
through PPM. Furlher training will take place during an INSET day for 2017118Academic year. Impacted positively on teacher's workload and on children'slearning.
Year1
Year2
Year3
Year4
Year5
Year6
lo atARE
64% 760/o 74To 66To 39% B9%
Page 8
LAKES ACADEMIES TRUST
(A company limited by guarantee)
TRUSTEES' REPORT (continued)FOR THE PERIOD ENDED 3I AUGUST 2017
Writing (65% Re,Wr& Macombined atARE)
Whole schoolo Spellings have been taught in phonics and SPAG sessions across all phases
of the school. Children have taken differentiated words to learn at home.Teachers have identified key words in the marking and feedback of children'swriting across subject areas and highlighted for correction.
o Children have accessed a range of resources to support spelling and havebeen encouraged to develop spellings independently using different learningstrategies.
o All staff in the school were observed teaching Phonics or SPaG - this showedhigh quality teaching and learning with any areas of development fed back.
o Speaking and listening has been taught and opportunities for extended talkfor learning included. Children have worked in trios in different learningsituations. All Staff and children continue to support each other in correct useof grammar and Standard English. Opportunities to reason and problemsolve have been developed in Maths.
¡ Handwriting has been explicitly taught, Write dance/ dough disco/ skills/lessons on joins especially in Year 2,3 and 4.
o Drafting, editing and redrafting continues to be developed with all children.New staff developed and trained alongside other staff. Positive examples ofmarking and feedback shared across the school in CPD sessions.
o Class texts being used have been monitored at Team meetings andoverseen by Literacy leader. A collection of age appropriate texts has begunto be developed.
o Develop dictation skills. Dictation has been planned and used within SPaGsessions and within extended writing sessions as appropriate.
o Creative writing of a range of texts has been completed once a week acrossKS1 and KS2. Different text types have been covered relating to what hasbeen taught in Literacy. Children have then acted upon feedback to developthe skills in writing. Children have a range of written examples to showprogress in learning and supporl teacher assessment.
o Writing Standards files have been developed and used for moderation.¡ 'What a good one looks like"'Wagoll"- Has been developed with examples
from children in school in KS2 and KS1 . Examples have been shared withchildren on working walls.
o Appropriateness of Pie Corbett texts- and progression across the yeargroups has improved through coaching in Team meetings and whole schoolcPD (15/11/16).
¡ Pie Corbett visual actions for consistency have been re-visited during a CPDsession (15111116) and at team meetings.
o Comparative judgement for assessment purposes has been used in UpperKS2 and used in whole school moderation of year 6 writing.
Year1
Year2
Year3
Year4
Year5
Year6
o/" al.ARE
73o/o 73To 67% 44% 28Yo B7%
Page 9
LAKES ACADEMIES TRUST
(A company limited by guarantee)
TRUSTEES' REPORT (continued)FOR THE PERIOD ENDED 31 AUGUST 2017
Assess-ment
Targetchildreneither allachieveARE at KS2 or makesufficientprogress toensure floorstandard(progress) isachieved.
Target children have been identifed at team meetings and in PPM.Progress has been monitored and strategies implemented. Where there wereconcerns about progress, these children's learning was scrutinised at a follow upPPM, to ensure that progress was accelerated.Target children including mobile children have been identified for interventions toaccelerate progress and for guided group work in class.
Trackings have been completed on a rolling programme and have informed teachingand learning.lnformation of mobile children from previous school has been collected andinformation shared to inform teaching and learning. |mpact...........78o/oof year 6
children that joined us after year 4 achieved combined expected. This is in line withthe school's figures for non-mobile children, showing that the 'gap' between mobileand non-mobile children is closing.
Progress of mobile children across other year groups has been accelerated, withaverage progress measured using tracking points being above the expected 3 pointsin reading, writing and maths. ln years 3 and 4 this was particularly strong, with achildr joining is in Autumn term 2017 being above 4 average tracking points progress
for all areas.
The picture is stronger for children joining us in 2015-2016, analysis of their secondyear data is diffìcult due to the small group size but does show that in some areas100% of children are age related.
Teachers have had termly PPM. With identiled children and specific actions relatingto planning teaching and learning have been identified.Class data has been shared to inform teaching and learning.
Moderation across teams has been on going in weekly team meetings for Reading,Writing and Maths.
Moderation across schools in Foundation, Year 2 and Year 6 have taken place termlyfor writing.
School tracking systems have been investigated fully and decision has been made tomove to a new bespoke tracking system DCPRO.
Page 10
LAKES ACADEMIES TRUST
(A company limited by guarantee)
TRUSTEES' REPORT (continued)FOR THE PERIOD ENDED 3I AUGUST 2017
Wellbeing Ghildrenmakeprogress ator abovenationalmedian byend of KS 2and KS 1
o All new staff trained in Mindspace so that they were able to deliver to children andlead sessions as an intervention.
r Mindspace interventions identified by teachers at team level and during pupilprogress meetings. Subsequent progress measured and monitored relating tooutcomes (at the end of the academic year and, at the end of the Key Stage.
¡ Professional Development Day (August)-established the school's values andbehaviors underpinning the values. This allowed the staff to know the values andbehaviors associated to these values. Non-negotiables in both staff and pupil
behaviors, from moving around school, to hot drinks, mobile phones (staffincluded), jewelry, uniform, plimsolls, lockers were established and revisitedthroughout the year to recap the importance of these and why we have them.
¡ Attendance for the end of the year was 96%. See attendance and Mobility report.o Staff absences are as follows
Autumn Spring Summer
25 22 16
Page I 1
LAKES ACADEM¡ES TRUST
(A company limited by guarantee)
TRUSTEES' REPORT (continued)FOR THE PERIOD ENDED 3I AUGUST 2OI7
Knowles Primary School 2016 - 2017
The school became part of the trust in May 2017 as a sponsored academy.
The main aims of the Trust for Knowles Primary School May 2O17 - August 2017
Area fordevelopment
Outcome Review
To reviewsafeguardingpractices andplan andimplementfindings
Safeguardingplan in place.
External review by Burton Read identified areas of needBurton Read support school/z day perweek.Safeguarding training planned.Safeguarding action plan in place.
To set amanageablebudgetfollowing adefìcitprediction
Ongoing - at aninterim phase
Spending rev¡ew to stop any spending not closely linked to Schoollmprovement. All spending approved by Chief financial Officer.lnsurance to cover staff absence.Classroom cover internal to eliminate supply costs.Resources centrally stored reduced need to order.Redundancy.
To reviewstaffing andset up a newstaffingstructure
Staff ngstructure inplace but notimplementeduntil Jan 1B
Non-teaching SLT appointed.Teaching and Learning Support Practit¡oner role createdFamily support team to be identifìed.
To identify andappoint aleadershipteam
SubstantiveHeadteacher,DeputyHeadteacher,AssistantHeadteacherCurriculum andAssistantHeadteacherlnclusion allappointed June-July 2017
SLT appointed, roles and responsibilities established for September 2O17Administrative support to SLT to be strengthened in 2O17-18.
To undertakea review ofteaching andlearning
Started June2017-will beongoing intoAutumn Term2017
Released SLT from WH to support.Subject knowledge identified.ldentified Phonics, SPAG and Guided Reading as an immediate priority andstarted staff training in Guided Reading.
To identifysolutions tothe lowattainment inread¡ng
Solutionsidentified-¡mplementGuided readingSystematicPhonics andSPAGDevelop staffsubjectknowledge.
Training delivered - to be reviewed and focus of observation Autumn term2017.Phonics and SPAG tra¡ning planned for Autumn term.
Page 12
LAKES AGADEMIES TRUST
(A company limited by guarantee)
TRUSTEES' REPORT (continued)FOR THE PERIOD ENDED 3I AUGUST 2017
c. Public benefit
The Trustees confirm that they have complied with the duty in Section 17(5) of the Charities Act 2011 to havedue regard to the Charity Commission's general guidance on public benefit in exercising their powers or duties.They have referred to this guidance when reviewing the Academy's aims and objectives and in planning its futureactivities.
Page 13
LAKES ACADEMIES TRUST
(A company limited by guarantee)
TRUSTEES' REPORT (continued)FOR THE PERIOD ENDED 3I AUGUST 2017
Strategic report
Achievements and performanceThe Trust is in its fìrst year of operation and following protracted negotiations and exiensive due diligence has taken on sponsorshipof Knowles Primary School a school placed in Special Measures by Ofsted in addition to Water Hall Primary (the lead school). Thetotal number of students in Year R to Year 6 at the end of the summer term 2017 at Water Hall was 321 compared to 339 in the
summer term 2016. The total number of students in Year R to Year 6 at the end of the summer term 2017 at Knowles Primary was471. ïhe school populations are subject to signifìcant movement on the estate it serves which for Water Hall is in one of the mostdisadvantaged wards in the country.
Water Hall Primary SchoolAttainment at the end of Foundation Stage is shown in the table below:EYFS:
Area of Learning and Development Emerging Expected Exceeding
wH2017 Nat 2017
Listening and attention 28.6 % l12l 42.9 % IlBl 28.6 % l12l 71.5 86
Understanding 26.2 o/o I11l 42.e % ll8l 31.0 % [13] 73-9 86
Speaking 31.0 % [13] 40.5 o/o l17l 28.6 % l12l 69.1 85
Moving and handling 1e.0 % [B] 5O.O o/" l21l 31.0 % [131 81 89
Health and self-care 19.0 % [8] 57.1 % 1241 23.8 % [10] 80.9 91
Self.confidence and self-awareness 19.0 % [B] 45.2 % llel 35.7 % [15] 80.9 89
Managing feelings and behaviour 21.4 % Ísl 57.1 o/o l24l 21 .4 o/o l9l 78.5 88
Making relationships 1e.0 % [B] 61.s % [26] 19.0 % [B] 80,9 89
Reading 33.3 % [14] 54.8 "/" 1231 11.S % [5] 66.7 77
Writing 38.1 % [16] 38.1 % [16] 23.8 % [10] 61.9 73
Numbers 35.7 % [15] 5e.5 % [25] 4.8 o/o l2l 64.3 79
Shape, space and measure 23.8 % [10] 61.9 % [26] 14.3 o/o [6] 76.2 82
People and communities 21 .4 o/. l9l 5e.5 % [2s] 1e.o % [B] 78.5 86
The world 21.4 % lsl 71.4 % l31l 7.1%l3l 78.5 86
Technology 11.e % [5] 6e.0 % [2e] 1e.0 % [B] 88 93
Exploring and using media and materials 1e.o % [B] 54.8 o/o I23l 26.2 o/o l11l8l 89
Being imaginative 21.4 % lsl 61.s % 126l 16.7 o/o l7l 78.6 88
Good Level of Development 62% 70.7%
Page'14
LAKES ACADEMIES TRUSÏ(A company limited by guarantee)
TRUSTEES' REPORT (continued)FOR THE PERIOD ENDED 3I AUGUST 2017
WH NAT
Gommunication and Language 66.7% 82%
PD 73.8% 87%
PSED 76.2% 85%
Literacy 61.9% 72%
Maths 64.3% 7B%
Prime 64.3% 79%
Specific 57.1% 69.9%
Phonics Screening outcomes for 2017 were:
National2017
LA 2017 School 2017
PhonicsScreening
81o/o B2o/o B3%
% Achieved Standard
KS1 assessments National 2017 LA.2017 School 2017
Reading 760/o 77To 76Yo
Writing 68% 69% 73Yo
Maths 7SYo 76To 83%
Science B3% B4% B5%
Reading, Writing and Maths 64o/o 68%
Page 15
LAKES ACADEMIES TRUST
(A company Iimited by guarantee)
TRUSTEES' REPORT (continued)FOR THE PERIOD ENDED 31 AUGUST 2017
% Achieved Standard
KS2 assessments National 2017 LA2017 School 20't7
Reading 71% 74o/o 89Yo
Writing 76% 76% (rA) 87Yo
Grammar, Punctuation & Spelling 77% 79% B4%
Maths 75% 760/o 97To
Science 82o/o 82% (rA) 910
Reading, Writing and Maths 61o/o 61Yo 7B%
Pupils eligible for Pupil Premium funding performed well in compar¡son to those nationally,Tlo/o achieving theexpected standards in Reading, Writing and Maths combined.
89% of children with English as an additional Language achieved the expected standards in Reading, Writing andMaths combined.
Pupil mobility is a historic problem in the ward, of the school's stable population 78% achieved the expectedstandards in Reading, Writing and Maths combined.
Page 16
LAKES ACADEMIES TRUST
(A company limited by guarantee)
TRUSTEES' REPORT (continued)FOR THE PERIOD ENDED 3I AUGUST 2OI7
Knowles Prímary
Knowles became a sponsored academy on 1 May 2017. The Trust had no formal oversight or influence oncurriculum and budgetary issues prior to that date when the school was the responsibility of Milton Keynes CouncilThe schools data for 2017 is published below however.
Area of Learning andDevelopment
Emerging Expected%
Exceedingfo
Knowles 2017o/o
National 2017%
Listening andattention
20 55.7 24.3 80 86.2
Understanding 20 61.4 18.6 BO 85.9
Speaking 21.4 67.1 11.4 78.6 85.4
Moving and handling 18.6 81.4 0 81.4 89.6
Health and self-care 15.7 78.6 5.7 84.3 9'1.3
Self-confidence andself-awareness
24.3 57.1 18.6 75.7 89.1
Managing feelings andbehavior
17.1 78.6 4.3 82.9 88
Making relationships 17.1 78.6 4.3 82.9 89.7
Reading 21.4 64.3 14.3 78.6 77
Writing 24.3 64.3 11.4 75.7 73.3
Number 21.4 72.9 5.7 78.6 79.2
Shapes, space andmeasure
24.3 75.7 0 75.7 81,6
People andcommunities
24.3 75.7 0 75.7 85.7
The world 22.9 67.1 10 81.4 85.7
Technology 7.1 92.9 0 92.9 92.7
Exploring media andmaterials
20 bð.b 11.4 BO BB.B
Being imaginative 22.9 75.7 1.4 77.1 BB.4
Knowles NAT
Communication and language 74.3 79
PD 80 87.5
PSED 72.9 85.2
Literacy 75.7 72.8
Maths 77.1 77.9
Prime 74.3 79
Specific 75.7 69.9
Page 17
LAKES ACADEMIES TRUST
(A company limited by guarantee)
TRUSTEES' REPORT (continued)FOR THE PERIOD ENDED 31 AUGUST 2017
Phonics
Tomeeting/exceeding National Expectation
National 2017 LA2017
School2017
Year I 81% 82% 71o/o
Year 2 86%
KS1 Assessments % Achieved standard
National 2017 LA.2017 School 2017
Reading 76% 77% 75%
Writing 68% 69% 6B%
Maths 75% 76o/o 8Oo/o
Science 83% 860/"
Reading, Writing & Maths 66%
KS2 Assessments % Achieved standard
National 2017 LA.2017 School 2017
Reading 71o/o 71% 62%
Writing 76% 76% 7B%
Grammar, Punctuation & Spelling 77o/o 79o/o 6B%
Maths 7 5o/" 76% BO%
Science 82% 82% 82%
Reading, Writing & Maths 61% 61o/" 55%
Page 1B
LAKES ACADEMIES TRUST
(A company limited by guarantee)
TRUSTEES' REPORT (continued)FOR THE PERIOD ENDED 3I AUGUST 2017
a. Key performance indicators
Staffing Ratio. The cost of staffing salaries as a proportion of the total revenue expenditure of Water Hall was72%.This is a decrease on the previous year (97o/o). The decrease is due to Knowles contributing to the salarybudget of key staff who are providing support to Knowles. The cost of staffing salaries as a proportion of the totalrevenue expenditure of Knowles Primary (adopted into the Trust on 1 May 2017) was 87%. This school will needto undergo a redundancy exercise and as a result of this we expect the staffing ratio to decrease next year.However, it is imperative that the roles we replace will be filled by high calibre staff in order to take Knowlesfon¡uard. This could mean that less of a decrease is seen in the staffing ratio than anticipaled in 2017118.
b. Going concern
After making appropriate enquiries, the board of trustees has a reasonable expectation that the academy hasadequate resources to continue in operational existence for the foreseeable future. For this reason it continuesto adopt the going concern basis in preparing the financial statements. Further details regarding the adoption ofthe going concern basis can be found in the Accounting Policies.
Financial reviewMost of the Trust's income is obtained from the DfE via the EFA in the form of recurrent grants, the use ofwhich is restricted to particular purposes. The grants received from the DfE during the year ended 31 August2017 and the associated expenditure are shown as Restricted Funds in the Statement of Financial Activities.The Trust also receives grants for fixed assets from the DfE which are shown in the Statement of FinancialActivities as restricted income in the Fixed Asset Fund. The Restricted Fixed Asset Fund balance is reduced byannual depreciation charges over the useful life of the assets concerned, as defined in the Academy'saccounting policies.
During the year ended 31 August 2017 , |r:fd expenditure (excluding restricted fixed asset funds) of [3,139,699was covered by recurrent grant funding from the DfE, togetherwith other incoming resources (excludingrestricted fixed asset and pension funds) of [3,537,667. The excess of income over expenditure for the year(excluding restricted fixed asset and pension funds)was f479,384. ln accordance with FRS102, the AcademyTrust received an actuarial assessment of its pension scheme deficit. The deficit balance of t1,697,000 is
included within the balance sheet as at 31 August 2017 and supporting notes to the financialstatements.
At 3'1 Augusl2017 the net book value of fixed assets was î-12,743,519 and movements in tangible fixed assetsare shown in note 14 to the financial statements. The assets were used exclusively for providing education and
the associated support services to the pupils of the Trust.
Key financial policies adopted or reviewed during the year include the Finance Policy which lays out theframework for financial management, including financial responsibilities of the Board, Headteacher, managers,budget holders and other staff, as well as delegated authority for spending.
Trustees have appointed Schools Business Services (SBS) to undertake a programme of internal checks onthe financial controls.
A Review of Financial Management and Governance - Alternative Assurance arrangements at Multi AcademyTrusts was requested by the ESFA. This is to confirm that academy trusts are complying with the financialmanagement and governance requirements contained in the academies fìnancial handbook (AFH).As part of their assurance work, the following areas were reviewed together with the suppoding evidence whichwas supplied by the trust.
Financial oversightFinancial planning
a
a
Page 19
LAKES ACADEMIES TRUST
(A company limited by guarantee)
TRUSTEES' REPORT (continued)FOR THE PERIOD ENDED 3I AUGUST 2OI7
a
a
a
a
a
lnternal controlFinancial monitoring and managementProper and regular use of public fundsAudit requirementsGeneral requirements
After reviewing the supporting evidence/documentation and the Trust's responses to the specific questions setout in the Alternative Assurance Questionnaire. The ESFA review confirms that the trust is Compliant withinthe testing scope. No major issues/concerns raised.
a. Reserves policy
The Trustees review the reserve levels of the Academy annually. This review encompasses the nature of incomeand expenditure streams, the need to match income with commitments and the nature of reserves. The Trusteestake into consideration the future plans of the Academy, the uncertainty over future income streams and otherkey risks identified during the risk review.
The Trustees have determined that the appropriate level of free reserves should be approximately f400,000.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. Total reserves of the Trust amount toÊ11,525,903, although 112,743,519 of this is invested in fixed assets. The remaining [479,384 (representingunrestricted funds) is the balance that the Trustees monitor in accordance with the Board's reserves policy.
b. Material investments policy
Due to the nature of funding, the Academy may at times hold cash balances surplus to its shot't termrequirements. The Trustees have authorised the opening of additional short term bank investment accounts totake advantage of higher interest rates. No other form of investment is authorised.
There are currently no material investments held by the Academy. During the coming year the Trustees willconsider investing free reserves.
c. Principal risks and unceÉainties
The Trust has agreed a Risk Management Strategy, a Risk Register and a Risk Management Plan. These havebeen discussed by Trustees and include the financial risks to the Trust. The register and plan are regularlyreviewed in light of any new information and formally reviewed annually.
The Trustees have assessed the major risks to which the Academy is exposed, in particular those relating to itsfinances, teaching, facilities and other operational areas. The Trustees have implemented a number of systemsto assess and minimise those risks, including internal controls described elsewhere. Where significant financialrisk still remains they have ensured they have adequate insurance cover.The principal risks and uncertainties facing the Trust are as follows:. Financial - the Trust has considerable reliance on continued Government funding through the EFA. ln this
year 83% of the Trust's incoming resources were ultimately Government funded and whilst this level is
expected to continue, there is no assurance that Government policy or practice will remain the same orthat public funding will continue at the same levels or on the same terms.
. Failures ln governance and/or management - the risk in this area arises from potential failure to effectivelymanage the Trust's finances, internal controls, compliance with regulations and legislation, statutoryreturns, etc. The Trustees continue to review and ensure that appropriate measures are in place tomitigate these risks.
. Reputational - the continuing success of the Trust is dependent on continuing to attract applicants in
sufficient numbers by maintaining the highest educational standards. To mitigate this risk Trustees ensurethat pupil success and achievement are closely monitored and reviewed. The Academy's continued good
Page 20
LAKES ACADEM¡ES TRUST
(A company limited by guarantee)
TRUSTEES' REPORT (continued)FOR THE PERIOD ENDED 31 AUGUST 2OI7
reputation, together with effective marketing should ensure numbers remain constant.Safeguarding and child protection - the Trustees continue to ensure that the highest standards aremaintained in the areas of selection and monitoring of staff, the operation of child protection policies andprocedures, health & safety and discipline.Staffing - the success of the Trust is reliant upon the quality of its staff and so the Trustees monitor andreview policies and procedures to ensure continued development and training of staff as well as ensuringthere is clear succession planning.Fraud and mismanagement of funds - The Trust has appointed an external contractor, Schools BusinessServices (SBS), to carry out checks on financial systems and records as required by the AcademyFinancial Handbook. All finance staff receive training to keep them up to date with financial practicerequirements and develop their skills in this area.
Risks to revenue funding from changes to the Funding Formula and changes to the benefits system whichreduces the numbers of children eligible for Pupil Premium funding are a concern. Needs and increasingemployment and premises costs mean that budgets will be increasingly tight in coming years. lssuessurrounding health and safety in one of the buildings at Knowles Primary will necessitate reducing the PAN as
Need improvements cannot be secured through grant funding. Overstaffing at Knowles Primary has to be swiftlyaddressed to prevent an unmanageable deficit. This will need to be achieved through redundancies, however, itwill not prevent the school going into deficit. Teachers' salaries at Knowles Primary are not in line with thenational pay structures and there may be a cost to bring these into line.
The Trustees examine the financial health formally every term. They review performance against budgets andoverall expenditure by means of regular update reports at all Resources Committee meetings. The Trustees alsoregularly review cash flow forecasts and ensure sufficient funds are held to cover all known and anticipatedcommitments.
The Board of Trustees recognises that the defined benefit pension scheme deficit (Local Government PensionScheme), which is set out in Note 23 to the financial statements, represents a significant potential liability.However as the Trustees consider that the Trust is able to meet its known annual contribution commitments forthe foreseeable future, this risk from this liability is minimised.
Plans for future periods
a. Future developments
The Trust will continue to provide outstanding education and improve the levels of performance of its pupils at all
levels. The Trust will continue to aim to attract high quality teachers and support staff in order to deliver its
objectives.
The Trust will look to increase in size with at least two other Primary Schools during the coming year. We will
continue to work with partner schools to improve the educational opportunities for students in the widercommunity.
The Trust will need to restructure staffing at Knowles Primary. Additionally the Pay Policy will need to be broughtinto line with that of the Trust.
Depending upon a successful funding bid through the Condition lmprovement Fund (ClF), the Trust will makeimprovements throughout the Knowles Primary School building to replace the broken heating system.
Full details of our plans for the future are given in our School Evaluation and Development Plans, which areavailable on the school's website or from the Clerk to the Trustees.
Page 21
LAKES ACADEMIES TRUST
(A company limited by guarantee)
TRUSTEES' REPORT (continued)FOR THE PERIOD ENDED 31 AUGUST 2017
Funds held as custodian
The Trust and its trusts do not act as custodian trustees for any other charity.
Disclosure of information to auditor
lnsofar as the Trustees are aware:
. there is no relevant audit information of which the charitable company's auditors are unaware, and
. that Trustees have taken all the steps that ought to have been taken as a Trustee in order to be aware of
any relevant audit information and to establish that the charitable company's auditor is aware of that
information.
The Trustees' repoft, incorporating a strategic report, was approved by order of the board of trustees, as thecompany directors, on 21 March 2018 and signed on its behalf by:
L GrudgeChair of Trustees
Page 22
LAKES ACADEM¡ES TRUST
(A company limited by guarantee)
GOVERNANCE STATEMENT
Scope of Responsibility
As trustees, we acknowledge we have overall responsibility for ensuring that Lakes Academies Trust has an
effective and appropriate system of control, financial and othenruise. However such a system is designed tomanage rather than eliminate the risk of failure to achieve business objectives, and can provide only reasonableand 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 ensuringfinancial controls conform with the requirements of both propriety and good financial management and inaccordance with the requirements and responsibilities assigned to it in the funding agreement between LakesAcademies Trust and the Secretary of State for Education. They are also responsible for reporting to the boardof 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 theStatement of Trustees' responsibilities. The board of trustees has formally met 5 times during the period.Attendance during the period at meetings of the board of trustees was as follows:
Trustee
M BrzezinskaL Crudge, Chair of TrusteesA Draper, Chief Executive OfficerK Emms, Vice ChairR M LeightonK L RobertsE J SharpK Greenhalgh
Meetings attended
31
544I51
Meetings attended
1
22I21
Out of a possible
51
5551
52
Over the accounting period there was one trustee resignation and one new appointment, as indicated above.The Board has met five times and one of its key objectives over the year has been to oversee and support thesuccessful conversion of Knowles Primary School to academy status and assimilation, as a sponsor school, in
to Lakes Academies Trust. Trustees undertook a full skills audit in autumn 2017 and were able to demonstrateknowledge and skills in all areas. The Board will be reviewing its governance through the National GovernorsAssociation "twenty key questions" and taking account of the NGA's and Welcome Trust's "A Framework forGovernance" at its first meeting in 2018.
The Finance, Admin & Personnel (FAP) Committee is a sub-committee of the main Board of Trustees. Itevaluates and reviews regulatory compliance and performance in all areas relating to financial management andpersonnel. lt oversees audits and budget preparation, determines staffing and salaries and has responsibilityforhealth and safety policies and compliance. lt also contributes towards the preparation of the trust's annualimprovement and management plans. lt makes decisions on pupil admission when appropriate. One of the mainissues it has dealt with this year is management of the effects on budget and associated implications of the newjoining sponsor school to the Trust.
Attendance at meetings in the period was as follows:
Trustee
Lucy CrudgeTony DraperKay EmmsKay GreenhalghElliot SharpBeverly Suckling
Out of a possible
1
221
22
Page 23
LAKES ACADEM¡ES TRUST
(A company limited by guarantee)
GOVERNANCE STATEMENT (continued)
The Curriculum Committee is also a sub-committee of the main board of trustees. lt reviews, monitors andassists in the areas of teaching and learning, curriculum planning, target-setting and assessment. lt contributestowards the preparation of the School Development Plan and monitors school improvement. lt makesrecommendations on curriculum related policy and provides information to the governing body about how thecurriculum is taught, evaluated and resourced. lt monitors and evaluates the academies' examination resultsand assists in the preparation of information required to be published online. One of its main focuses over the
accounting year has been to embed the new joining school within the Trust and to establish values, behavioursand effective foundations for learning.
Attendance at meetings in the period was as follows:
Trustee
Marta BrzezinskaLyn DawesRoy LeightonBecky McGuireKaren Roberts
Meetings attended
231
31
Out of a possible
33331
Review of Value for Money
As Accounting Officer, the CEO has responsibility for ensuring that the academy delivers good value in the useof public resources. The Accounting Officer understands that value for money refers to the educational and widersocietal outcomes achieved in return for the taxpayer resources received.
The Accounting Officer considers how the academy's use of its resources has provided good value for moneyduring each academic year, and reports to the board of trustees where value for money can be improved,including the use of benchmarking data where appropriate. The Accounting Officer for the academy has
delivered improved value for money during the year by:
. ensuring funding is used effectively to provide additional support directed to those with the greatest need,
defined by progress against targets, engagement in classroom learning and attendance.
Examples of some initiatives to raise standards are:
Appointment of Headteacher for Water Hall Primary
Appointment of Deputy Headteacher for Water Hall PrimaryAppointment of Assistant Headteacher for Water Hall Primary (These three appointments wereachieved through succession planning to ensure continuity and progression of values based
learning which is proven to be successful at Water Hall)Appointment of Headteacher at Knowles PrimaryAppointment of Deputy Headteacher at Knowles Primary
Appointment of 2 Assistant Headteachers at Knowles Primary-'l for Curriculum, I for lnclusion
(Deputy and Curriculum Assistant Headteacher recruited from Water Hall bringing excellence in
practice to Knowles)
All the above appointments have been made to further develop (Water Hall) or bring about (Knowles)
improvements in teaching and learning to raise standards and ensure children achieve age related
expectations.
Appointment of Family Support Manager to facilitate rise in attendance and support early
intervention children and family practices.
Engagement of Social Work consultants to maintain exemplary practices in safeguarding, support
Family Support Team.Appointment of Director of lnclusion for the Trust to lead on SEND practice across the Trust
Page 24
LAKES ACADEMIES TRUST
(A company limited by guarantee)
GOVERNANCE STATEMENT (continued)
ensuring that weaknesses in sponsored academies are addressed and children make acceleratedprogress.Appointment of EAL lnclusion Manager to raise attainment of children with EAL across the Trust.CPD including residentialtraining for Maths leaders for Singapore Maths, to raise attainment in
Maths focusing on reasoning skills.
These initiatives have resulted in improved attainment results as shown in outcomes for children by the
time they leave Water Hall Primary. The percentage of pupils achieving at least the expected standard inthe2O17 KS2 SATs was: Reading 89% (national 71o/o andLAT4o/o), Maths 97% (nationalTS% and LA
760/o), Grammar, Punctuation and Spelling 84% (national TTo/o, LA 79%), Writing 87% (national T60/o, LA
76%), Scienceglo/o (national B2o/o,LAB2%,), Reading, Writing and Maths combined 78% (national6l%,LA 61%).
Through the work of the family support team we have continued to work hard to reduce absenteeism. At
3.1%, overall absence at Water Hall is better than schools nationally that have a similar number of pupils
entitled to free school meals. We will continue to work to improve this.
All purchases are assessed to ensure they demonstrate good value for money. Three quotes are obtained
for any purchases above f500 and a full tender exercise conducted for purchases above t5000 to ensure
that high value contracts are assessed against the marketplace. All contracts are reviewed regularly toensure they continue to provide good value for money.
The Trust facilitates group purchases for all schools in the Trust to achieve 'best value'. Our budget
holders are trained to seek out the most competitive deals using various procurement tools such as
internet shopping, advice from other schools and economies of scale. The School Business Manager
attends regular local Finance network meetings. These forums are very useful for sharing good practice.
The Trust's schools are members of the Risk Protection Arrangement set up by the DfE. This has reduced
insurance costs considerably whilst increasing the level of cover offered.
The Purpose of the System of lnternal Control
The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk offailure to achieve policies, aims and objectives; it can therefore only provide reasonable and not absoluteassurance of effectiveness. The system of internal control is based on an ongoing process designed to identifyand prioritise the risks to the achievement of academy policies, aims and objectives, to evaluate the likelihood ofthose risks being realised and the impact should they be realised, and to manage them efficiently, effectively andeconomically. The system of internal control has been in place in Lakes Academies Trustforthe period 10 June2016 to 31 August 2017 and up to the date of approval of the annual report and financialstatements.
Gapacity to Handle Risk
The board of trustees has reviewed the key risks to which the academy is exposed together with the operating,financial and compliance controls that have been implemented to mitigate those risks. The board of trustees is ofthe view that there is a formal ongoing process for identifying, evaluating and managing the academy'ssignificant risks, that has been in place for the period 10 June 2016 to 3'l August 2017 and up to the date ofapproval of the annual report and financial statements. This process is regularly reviewed by the board oftrustees.
The Risk and Gontrol Framework
The academy's system of internal financial control is based on a framework of regular management informationand administrative procedures including the segregation of duties and a system of delegation and accountability.ln pafticular, it includes:
Page 25
a
LAKES ACADEMIES TRUST
(A company limited by guarantee)
GOVERNANCE STATEMENT (continued)
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 Resources Scrutiny Committee of reports which indicate financial performance
against the forecasts and of major purchase plans, capital works and expenditure programmes;
setting targets to measure financial and other performance;
clearly defined purchasing (asset purchase or capital investment) guidelines;
delegation of authority and segregation of duties;identification and management of risks.
The board of trustees has considered the need for a specific internal audit function and has decided to appointSchool Business Services (SBS) as internalauditor.
The internal auditor's role includes giving advice on financial matters and performing a range of checks on theacademy's financial systems. ln particular the checks carried out in the current period included:. Testing of payroll systems. Testing of purchase systems. Testing of accounting systems. Testing of accounUbank reconciliations. Testing of income control
On a semi-annual basis, the internal auditor reports to the board of trustees through the finance and generalpurposes committee on the operation of the systems of control and on the discharge of the board of trustees'financial responsibilities.
The reports were not presented to FAP or trustees in the first year of academy conversion, but the Trust has
since reviewed its procedures and these reports will now be considered on a termly basis by both governingbodies.
Review of Effectiveness
As Accounting Officer, the CEO has responsibility for reviewing the effectiveness of the system of internalcontrol. During the period in question the review has been informed by:
. the work of the internal auditor;
. the work of the external auditor;
. the financial management and governance self-assessment process,
. the work of the executive managers within the academy 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 internalcontrol by the FAP Committee and a plan to address weaknesses and ensure continuous improvement of thesystem is in place.
Approvedbyorderof themembersof theboardof trusteeson2l March2018 andsignedontheirbehalf,by:
L GrudgeGhair of Trustees
a
a
Page 26
LAKES AGADEMIES TRUST
(A company limited by guarantee)
STATEMENT ON REGULARITY, PROPRIETY AND COMPLIANCh
As Accounting Officer of Lakes Academies Trust I have considered my responsibility to notify the academy trustboard of trustees and the Education and Skills Funding Agency (ESFA) of material irregularity, impropriety andnon-compliance with ESFA terms and conditions of funding, under the funding agreement in place between theacademy trust and the Secretary of State for Education. As part of my consideration I have had due regard to therequirements of the Academies Financial Handbook 2016.
I confirm that I and the academy trust board of trustees are able to identify any material irregular or improper useof funds by the academy trust, or material non-compliance with the terms and conditions of funding under theacademy trust's funding agreement and the Academies Financial Handbook 2016.
I confirm that no instances of material irregularity, impropriety or funding non-compliance have been discoveredto date are identified after the date of this statement, these will be notified to the board of
Date: 2018
Page 27
LAKES ACADEMIES TRUST
(A company limited by guarantee)
STATEMENT OF TRUSTEES' RESPONSIB¡LITIESFOR THE PERIOD ENDED 31 AUGUST 2017
The Trustees (who act as governors of Lakes Academies Trust and are also the directors of the charitablecompany for the purposes of company law) are responsible for preparing the Trustees' report and the financialstatements in accordance with the Annual Accounts Direction issued by the Education and Skills FundingAgency, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) andapplicable law and regulations.
Company law requires the Trustees to prepare financial statements for each financial year. Under company lawthe Trustees must not approve the financial statements unless they are satisfied that they give a true and fairview of the state of affairs of the charitable company and of its incoming resources and application ofresources, including its income and expenditure, for that period. ln preparing these financial statements, theTrustees are required to:
. select suitable accounting policies and then apply them consistently;
. observe the methods and principles of the Charities SORP 2015 and the Academies Accounts Direction2016 Io 2017;
. make judgments and accounting estimates that are reasonable and prudent;
. state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to anymaterial departures disclosed and explained in the financial statements;
. prepare the financial statements on the going concern basis unless it is inappropriate to presume thatthe charitable company will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explainthe charitable company's transactions and disclose with reasonable accuracy at any time the financial positionof the charitable company and enable them to ensure that the financial statements comply with the CompaniesAct 2006. They are also responsible for safeguarding the assets of the charitable company and hence fortaking 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 appliesfinancial and other controls, which conform with the requirements both of propriety and of good financialmanagement. They are also responsible for ensuring grants received from ESFA/DfE have been applied forthe purposes intended.
The Trustees are responsible for the maintenance and integrity of the corporate and financial informationincluded on the charitable company's website. Legislation in the United Kingdom governing the preparation anddissemination of financial statements may differ from legislation in other jurisdictions.
Approvedbyorderof themembersof theboardof trusteeson2l March20'lBandsignedonitsbehalf by:
L GrudgeChair of Trustees
Page 2B
LAKES ACADEMIES TRUST
(A company limited by guarantee)
INDEPENDENT AUDITOR'S REPORT ON THE F¡NANCIAL STI\TEMENTS TO THE MEMBERS OF LAKESACADEMIES TRUST
Opinion
We have audited the financial statements of Lakes Academies Trust (the 'academy') for the period ended 31
August 2017 which comprise the Statement of financial activities incorporating income and expenditure account,the Balance sheet, the Statement of cash flows and the related notes, including a summary of significantaccounting policies. The financial reporting framework that has been applied in their preparation is applicablelaw, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), includingFinancial Reporting Standard 102'The Financial Reporting Standard applicable in the UK and Republic oflreland', the Charities SORP 2015 and the Academies Accounts Direction 2016 to 2017 issued by the Educationand Skills Funding Agency.
This report is made solely to the academy's members, as a body, in accordance with Chapter 3 of Part l6 of theCompanies Act 2006. Our audit work has been undertaken so that we might state to the academy's membersthose matters we are required to state to them in an Auditor's report and for no other purpose. To the fullestextent permitted by law, we do not accept or assume responsibility to anyone other than the academy and itsmembers, as a body, for our audit work, for this report, or for the opinions we have formed.
ln our opinion the financial statements:
. give a true and fair view of the state of the academy's affairs as at 31 August 2017 and of its incomingresources and application of resources, including its income and expenditure forthe period then ended;
. have been properly prepared in accordance with United Kingdom Generally Accepted AccountingPractice; and
. have been prepared in accordance with the requirements of the Companies Act 2006, the Charities SORP20'15 and the Academies Accounts Direction 2016 to 20'17 issued by the Education and Skills FundingAgency.
Basis for opinion
We conducted our audit in accordance with lnternational Standards on Auditing (UK) (lSAs (UK))and applicablelaw. Our responsibilities under those standards are furlher described in the Auditor's responsibilities for the auditof the financial statements section of our report. We are independent of the academy in accordance with theethical requirements that are relevant to our audit of the financial statements in the United Kingdom, includingthe Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in
accordance with these requirements. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.
Gonclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the lSAs (UK) require us toreport to you where:
. the Trustees' use of the going concern basis of accounting in the preparation of the financial statements isnot appropriate; or
. the Trustees have not disclosed in the financial statements any identified material uncertainties that maycast significant doubt about the academy's ability to continue to adopt the going concern basis ofaccounting for a period of at least twelve months from the date when the financial statements areauthorised for issue.
Page 29
LAKES ACADEMIES TRUST
(A company limited by guarantee)
INDEPENDENT AUDITOR'S REPORT ON THE FINANC¡AL STATEMENTS TO THE MEMBERS OF LAKESACADEMIES TRUST
Other information
The Trustees are responsible for the other information. The other information comprises the information included
in the Annual report, other than the fìnancial statements and our Auditor's report thereon. Our opinion on the
¡nancial statements does not cover the other information and, except to the extent othenvise explicitly stated inour report, we do not express any form of assurance conclusion thereon.
ln connection with our audit of the financial statements, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial statements or our
knowledge obtained in the audit or otherwise appears to be materially misstated. lf we identify such material
inconsistències or apparent material misstatements, we are required to determine whether there is a material
misstatement in the financial statements or a material misstatement of the other information. lf, based on the
work we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact.
We have nothing to report in this regard
Opinion on other matters prescribed by the Companies Act 2006
ln our opinion, based on the work undertaken in the course of the audit:
. the information given in the Trustees' Report including the Strategic Report for which the financial
statements are prepared is consistent with the financial statements.
. the Trustees' Report and the Strategic Report have been prepared in accordance with applicable legal
requirements.
Matters on which we are required to report by exception
ln the light of our knowledge and understanding of the academy and its environment obtained in the course of
the audii, we have not identified material misstatements in the Trustees' Report including the Strategic Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006
requires us to repoft to you if, in our opinion:
. adequate accounting records have not been kept, or returns adequate for our audit have not been
received from branches not visited by us; or
. the financial statements are not in agreement with the accounting records and returns; or
. certain disclosures of Trustees' remunerations specified by law not made; or
. we have not received all the information and explanations we require for our audit.
Page 30
LAKES ACADEMIES TRUST
(A company limited by guarantee)
INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS TO THE MEMBERS OF LAKESACADEMIES TRUST
Responsibilities of trustees
As explained more fully in the Statement of Trustees' responsibilities, the Trustees (who are also the directors ofthe academy for the purposes of company law) are responsible for the preparation of the financial statementsand for being satisfied that they give a true and fair view, and for such internal control as the Trustees determineis necessary to enable the preparation of financial statements that are free from material misstatement, whetherdue to fraud or error.
ln preparing the financial statements, the Trustees are responsible for assessing the academy's ability tocontinue as a going concern, disclosing, as applicable, matters related to going concern and using the goingconcern basis of accounting unless the Trustees either intend to liquidate the academy or to cease operations, orhave no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are freefrom material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes ouropinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with lSAs (UK) will always detect a material misstatement when it exists. Misstatements can arisefrom fraud or error and are considered material if, individually or in the aggregate, they could reasonably beexpected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the FinancialReporting Council's website at: r¡nryw.frc.org.uk/auditorsresponsibilities. This description forms part of our
report.
Guy Biggin (Senior statutory auditor)
for and on behalf of
Crowe Clark Whiteh¡ll LLP
Statutory Auditor
Carrick HouseLypiatt RoadCheltenhamGL5O 2QJDate: Lg t-+A,ttcl
"-Ðt6
¡
Page 31
LAKES ACADEMIES TRUST
(A company limited by guarantee)
¡NDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO LAKESACADEMIES TRUST AND THE EDUCATION AND SKILLS FUND¡NG AGENCY
ln accordance with the terms of our engagement letter dated 6 February 2017 and further to the requirements ofthe Education and Skills Funding Agency (ESFA) as included in the Academies Accounts Direction 2016 to2017, we have carried out an engagement to obtain limited assurance about whether the expenditure disbursedand income received by Lakes Academies Trust during the period 10 June 2016 to 31 August 2017 have beenapplied to the purposes identified by Parliament and the financial transactions conform to the authorities whichgovern them.
This report is made solely to Lakes Academies Trust and the ESFA in accordance with the terms of ourengagement letter. Our work has been undertaken so that we might state to Lakes Academies Trust and theESFA those matters we are required to state in a report and for no other purpose. To the fullest extent permittedby law, we do not accept or assume responsibility to anyone other than Lakes Academies Trust and the ESFA,for our work, for this report, or for the conclusion we have formed.
Respective responsibilities of Lakes Academies Trust's accounting officer and the reporting accountant
The Accounting Officer is responsible, under the requirements of Lakes Academies Trust's funding agreementwith the Secretary of State for Education dated 15 July 2016, and the Academies Financial Handbook extantfrom 1 September 2016, 'for ensuring that expenditure disbursed and income received is applied for thepurposes 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 ethicalguidance and are to obtain limited assurance and report in accordance with our engagement letter and therequirements of the Academies Accounts Direction 2016 to 2017. W e report to you whether anything has cometo our attention in carrying out our work which suggests that in all material respects, expenditure disbursed andincome received during the period 10 June 2016 to 31 August 2017 have not been applied to purposes intendedby 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 2016 to 20'l 7 issued by
the ESFA. We performed a limited assurance engagement as defined in our engagement letter.
The objective of a limited assurance engagement is to perform such procedures as to obtain information andexplanations in order to provide us with sufficient appropriate evidence to express a negative conclusion onregularity.
A limited assurance engagement is more limited in scope than a reasonable assurance engagement andconsequently does not enable us to obtain assurance that we would become aware of all significant matters thatmight 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 theacademy's income and expenditure.
Page 32
LAKES ACADEMIES TRUST
(A company limited by guarantee)
INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO LAKESACADEMIES TRUST AND THE EDUCATION AND SKILLS FUNDING AGENCY (continued)
Conclusion
ln 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 period 10 June 2016 to 31 August2017 have not beenapplied to purposes intended by Parliament and the financial transactions do not conform to the authorities whichgovern them.
%*Od.W'2Crowe Glark Whiteh¡ll LLP
Reporting accountant
Carrick HouseLypiatt RoadCheltenhamGL5O 2QJ
Date: z€ Hê.A-<-V| Z.Ð(E
Page 33
LAKES ACADEMIES TRUST
(A company limited by guarantee)
STATEMENT OF FINANCIAL AGTIVITIES INCORPORAT¡NG INCOME AND EXPENDITURE ACCOUNTFOR THE PERIOD ENDED 3I AUGUST 2017
Unrestrictedfunds
2017Note t
Restrictedfunds
2017I
Restrictedfixed asset
funds2017
f
Totalfunds
2017t
14,104
11,885,323
lncome from:
Donations and capital grants 2Transfer from local authority onconversion 2Charitable activities: 3Funding for the academy trust'seducational operationsOther trading activities 4lnvestments 5
Total income
Expenditure on:
Raising fundsCharitable activities
Total expenditure 6
Net income / (expenditure)before transfersTransfers between Funds
Net income / (expenditure)before other recognisedgains and losses
Other recognised losses
,18
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
14,104
573,202 (1,504,000) 12,816,121
4,03624,209
855
2,935,365 2,939,40124,209
855
602,302 1,431,365 12,830,225 14,863,892
7,377 7,3773,307,6123,132,322 175,290
7,377 3,132,322 175,290 3,314,989
594,925(115,541)
(l,700,957)26,957
12,654,935 11,548,90388,584
479,384 (1,674,000)'12,743,519
- (23,000)
1 1,548,903
(23,000)
479,384 (1,697,000) 12,743,519 11,525,903
479,384 (1,697,000) 12,743,519 11,525,903
The notes on pages 37 to 59 form part of these financial statements.
Page 34
LAKES ACADEMIES TRUST
(A company limited by guarantee)REGISTERED NU MBER: 1022581 3
BALANCE SHEETAS AT 31 AUGUST 2017
Fixed assets
Tangible assets
Gurrent assets
Stocks
Debtors
Cash at bank and in hand
Greditors: amounts falling due within one year
Net current assets
Total assets less current liabilitiesDefined benefit pension scheme liability
Net assets including pension scheme liabilities
Funds of the academy
Restricted income funds:
Restricted income funds excluding pension liability
Pension reserve
Total restricted income funds
Unrestricted income funds
Total funds
Note
14
Ê
6,271
549,361
339,979
895,611
(416,227)
12,743,519
(l,697,000)
2017Ê
12,743,51.9
479,384
13,222,903
(1,697,000)
I1,525,903
11,046,519
479,384
11,525,903
15
16
17
23
1B
1B
1B
The financial statements on pages 34 to 59 were approved by the Trustees, and authorised for issue, on 21
March 2018 and are signed on their behalf, by:
L CrudgeGhair of Trustees
The notes on pages 37 to 59 form part of these financial statements
Page 35
LAKES ACADEMIES TRUST
(A company limited by guarantee)
STATEMENT OF CASH FLOWSFOR THE PERIOD ENDED 3I AUGUST 2017
Cash flows from operating activitiesCash transferred on conversion to an academy trust
Net cash used in operating activities
Cash flows from investing activities:lnterest from investmentsPurchase of tangible fixed assetsCapital grants from DíE/ESFA
Net cash used in investing activities
Ghange in cash and cash equivalents in the period
Cash and cash equivalents brought fon¡vard
Gash and cash equivalents carried forward
The notes on pages 37 to 59 form part of these financial statements
20
Note
21
2017e
573,202
(145,4941
855(102,688)
14,104
(87,7291
339,979
339,979
Page 36
LAKES ACADEMIES TRUST
(A company limited by guarantee)
NOTES TO THE F¡NANCIAL STATEMENTSFOR THE PERIOD ENDED 31 AUGUST 2O'I7
1. Accounting Policies
A summary of the principal accounting policies adopted (which have been applied consistently,except where noted), judgments and key sources of estimation uncertainty, is set out below.
The company is a private company (limited by guarantee), which is incorporated and registered inEngland and Wales (no. 10225813) the address of the principal office is C/O Water Hall PrimarySchool, Fern Grove, Bletchley, Milton Keynes, Buckinghamshire, MK2 3QF.
1.1 Basis of preparation of financial statements
The financialstatements of the academytrust, which is a public benefit entity under FRS 102, havebeen prepared under the historical cost convention in accordance with the Financial ReportingStandard Applicable in the UK and Republic of lreland (FRS 102), the Accounting and Reporting byCharities: Statement of Recommended Practice applicable to charities preparing their accounts in
accordance with the Financial Reporting Standard applicable in the UK and Republic of lreland (FRS102) (Charities SORP (FRS 102)), the Academies Accounts Direction 2016 to 2017 issued by ESFA,the Charities Act 2011 and the Companies Act 2006.
Lakes Academies Trust constitutes a public benefit entity as defined by FRS 102.
1.2 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 at least one year from the date of authorisation for issue of the financial statements andhave concluded that the academy trust has adequate resources to continue in operational existencefor the foreseeable future and there are no material uncertainties about the academy trust's ability tocontinue as a going concern, thus they continue to adopt the going concern basis of accounting in
preparing the financial statements.
Page 37
LAKES AGADEMIES TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD ENDED 3I AUGUST 2OI7
1. AccountingPolicies(continued)
1.3 lncome
All income is recognised once the academy has entitlement to the income, it is probable that theincome will be received and the amount of income receivable can be measured reliably.
Grants are included in the Statement of financial activities incorporating income and expenditureaccount on a receivable basis. The balance of income received for specific purposes but notexpended during the period is shown in the relevant funds on the Balance sheet. Where income is
received in advance of entitlement of receipt, its recognition is deferred and included in creditors asdeferred income. Where entitlement occurs before income is received, the income is accrued.
General Annual Grant is recognised in full in the Statement of financial activities incorporatingincome and expenditure account in the year for which it is receivable and any abatement in respectof the period is deducted from income and recognised as a liability.
Capital grants are recognised when there is entitlement and are not deferred over the life of theasset on which they are expended. Unspent amounts of capital grant are reflected in the balance inthe restricted fixed asset fund.
Donations are recognised on a receivable basis where receipt is probable and the amount can bereliably measured.
Other income, including the hire of facilities, is recognised in the period in which it is receivable andto the extent the goods have been provided or on completion of the service.
Where assets are received by the trust on conversion to an academy, the transferred assets aremeasured at fair value and recognised in the Balance sheet at the point when the risk and rewardsof ownership pass to the trust. An equal amount of income is recognised as a transfer on conversionwithin lncome from donations and capital grants.
1.4 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economicbenefit to a third party, it is probable that a transfer of economic benefits will be required insettlement and the amount of the obligation can be measured reliably. Expenditure is classified byactivity. The costs of each activity are made up of the total of direct costs and shared costs,including support costs involved in undertaking each activity. Direct costs attributable to a singleactivity are allocated directly to that activity. Shared costs which contribute to more than one activityand support costs which are not attributable to a single activity are apportioned between thoseactivities on a basis consistent with the use of resources. Central staff costs are allocated on thebasis of time spent, and depreciation charges allocated on the podion of the asset's use.
Expenditure on raising funds includes all expenditure incurred by the academy to raise funds for itscharitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Expenditure on charitable activities are costs incurred on the academy's educational operations,including support costs and those costs relating to the governance of the academy appointed tocharitable activities.
All expenditure is inclusive of irrecoverable VAT
Page 38
LAKES ACADEMIES TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD ENDED 31 AUGUST 2OI7
l. AccountingPolicies(continued)
1.5 Tangible fixed assets and depreciation
All assets costing more than [1,000 are capitalised and are carried at cost, net of depreciation andany provision for impairment.
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. Where there are specific conditions attachedto the funding requiring the continued use of the asset, the related grants are credited to a restrictedfixed asset fund in the Statement of financial activities incorporating income and expenditureaccount and carried fon¡vard in the Balance sheet. Depreciation on the relevant assets is chargeddirectly to the restricted fixed asset fund in the Statement of financial activities incorporating incomeand expenditure account. Where tangible fixed assets have been acquired with unrestricted funds,depreciation on such assets is charged to the unrestricted fund.
Depreciation is provided on all tangible fixed assets other than freehold land, at rates calculated towrite off the cost of these assets, less their estimated residual value, over their expected useful liveson the following bases:
Long-term leasehold propertyFixtures and fittingsComputer equipmentLeasehold property i m provements -
2% straight line10% straight line33% straight line'10% straight line
A review for impairment of a fixed asset is carried out if events or changes in circumstances indicatethat the carrying value of any fixed asset may not be recoverable. Shortfalls between the carryingvalue of fixed assets and their recoverable amounts are recognised as impairments. lmpairmentlosses are recognised in the Statement of financial activities incorporating income and expenditureaccount.
1.6 Stocks
Stocks are valued at the lower of cost and net realisable value after making due allowance forobsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion offixed and variable overheads.
1.7 Liabilities and provisions
Liabilities and provisions are recognised when there is an obligation at the Balance sheet date as aresult of a past event, it is probable that a transfer of economic benefit will be required in settlement,and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amountthat the academy anticipates it will pay to settle the debt or the amount it has received as advancedpayments for the goods or services it must provide. Provisions are measured at the best estimate ofthe amounts required to settle the obligation. Where the effect of the time value of money ismaterial, the provision is based on the present value of those amounts, discounted at the pre-taxdiscount rate that reflects the risks specific to the liability. The unwinding of the discount isrecognised within interest payable and similar charges.
Page 39
LAKES ACADEMIES TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD ENDED 31 AUGUST 2017
1. AccountingPolicies(continued)
1.8 Financial instruments
The academy only holds basic financial instruments as defined in FRS 1O2.The financial assets and
financial liabilities of the academy and their measurement basis are as follows:
Financial assefs ' trade and other debtors are basic financial instruments and are debt instrumentsmeasured at amortised cost as detailed in note 16. Prepayments are not financial instruments.Cash at bank is classified as a basic financial instrument and is measured at face value.
Financial liabilities - trade creditors, accruals and other creditors are financial instruments, and aremeasured at amortised costs as detailed in note 17. Taxation and social security are not included in
the financial instruments disclosure definition. Deferred income is not deemed to be a financialliability, as the cash settlement has already taken place and there is an obligation to deliver servicesrather than cash or another financial instruments.
1.9 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 companyfor UK corporation tax purposes.
Accordingly, the academy is potentially exempt from taxation in respect of income or capital gains
received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are
applied exclusively to charitable purposes.
I .10 Pensions
Retirement benefits to employees of the academy trust are provided by the Teachers' PensionScheme ("TPS") and the Local Governments Pension Scheme ('LGPS"). These are defined benefitschemes.
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 are
determined by the Government Actuary on the basis of quadrennial valuations using a prospective
unit credit method. As stated in note 23, the TPS is a multi-employer scheme and there isinsufficient information available to use defined benefit accounting. The TPS is therefore treated as
a defined contribution scheme for accounting purposes and the contributions recognised in theperiod to which they relate.
Page 40
LAKES ACADEMIES TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD ENDED 31 AUGUST 2017
1. AccountingPolicies(continued)
The LGPS is a funded scheme and the assets are held separately from those of the academy trustin separate trustee administered funds. Pension scheme assets are measured at fair value andliabilities are measured on an actuarial basis using the projected unit credit method and discountedat a rate equivalent to the current rate of return on a high quality corporate bond of equivalent termand currency to the liabilities. The actuarial valuations are obtained at least triennially and areupdated at each Balance sheet date. The amounts charged to operating surplus are the currentservice costs and the costs of scheme introductions, benefit changes, settlements and curtailments.They are included as part of staff costs as incurred. Net interest on the net defined benefitliability/asset is also recognised in the Statement of financial activities incorporating income andexpenditure account and comprises the interest cost on the defined benefit obligation and interestincome on the scheme assets, calculated by multiplying the fair value of the scheme assets at thebeginning of the period by the rate used to discount the beneflt obligations. The difference betweenthe interest income on the scheme assets and the actual return on the scheme assets is recognisedin other recognised gains and losses.
Actuarial gains and losses are recognised immediately in other recognised gains and losses
1.1 I Gonversion to an academy trust
The conversion from a state maintained school to an academy trust involved the transfer ofidentifiable assets and liabilities and the operation of the school for fnil consideration. The substanceof the transfer is that of a gift and it has been accounted for on that basis as set out below.
The assets and liabilities transferred on conversion from Waterhall Primary School and KnowlesPrimary School to an academy trust have been valued at their fair value. The fair value has beenderived based on that of equivalent items. The amounts have been recognised under the appropriatebalance sheet categories, with a corresponding amount recognised in Donations - transferfrom local
authority on conversion in the Statement of financial activities incorporating income and expenditureaccount and analysed under unrestricted funds, restricted general funds and restricted fixed assetfunds.
Further details of the transaction are set out in nole 22
'1.12 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 the Department for Education where the asset acquired or created is held for a specificpurpose.
Restricted general funds comprise all other restricted funds received with restrictions imposed by thefunder and include grants from the Department for Education.
Page 41
LAKES ACADEMIES TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD ENDED 31 AUGUST 2017
1. AccountingPolicies(continued)
1.13 Criticalaccounting estimates and areas of judgment
Estimates and judgments are continually evaluated and are based on historical experience and otherfactors, including expectations of future events that are believed to be reasonable under thecircumstances.
Critical accounting estimates and assumptions:
The academy trust makes estimates and assumptions concerning the future. The resultingaccounting estimates and assumptions will, by definition, seldom equal the related actual results.The estimates and assumptions that have a signifìcant risk of causing a material adjustment to thecarrying amounts of assets and liabilities within the next financial year are discussed below.
The present value of the Local Government Pension Scheme defined benefit liability depends on anumber of factors that are determined on an actuarial basis using a variety of assumptions. Theassumptions used in determining the net cost (income) for pensions include the discount rate. Anychanges in these assumptions, which are disclosed in note 23, will impact the carrying amount of thepension liability. Furthermore a roll forward approach which projects results from the latest fullactuarial valuation performed at 31 March 2016 has been used by the actuary in valuing thepensions liability at 3'1 August 2017. Any differences between the figures derived from the roll
forward approach and a full actuarial valuation would impact on the carrying amount of the pensionliability.
2. lncome from donations and capital grants
573,202 (1,504,000)
Restrictedfixed asset
funds2017
€
14,10412,816,121
573,202 (1,504,000) 12,830,225 11,899,427
Donations and capital grantsTransfer from local authority on conversion
Unrestrictedfunds
2017Ê
Restrictedfunds
2017Ê
Totalfunds
2017€
14,1041'1,885,323
Page 42
LAKES ACADEM¡ES TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD ENDED 31 AUGUST 2017
3. Funding for Academy's educational operations
DfE/ESFA grants
General Annual Grant (GAG)Start Up GrantsDfE/EFA GrantsGrowth Funding
Other government grants
PupilPremiumHigh Needs FundingEarly Years FundingOther LocalAuthority
Other funding
Trip lncomeOther lncome
4. Other trading activities
Lettings incomeUniform incomeOther income
448,613 448,613
4,036 4,03620,09320,093
4,036 20,093 24,129
4,036 2,935,365 2,939,401
Unrestrictedfunds
2017t
Restrictedfunds
2017Ê
2,177,29775,000
161,86252,500
Totalfunds
2017â
2,177,29775,000
161,86252,500
2,466,659 2,466,659
282,41429,07990,65646,464
282,41429,07990,65646,464
Unrestrictedfunds
2017Ê
24,209
Restrictedfunds
2017Ê
Totalfunds
2017Ê
24,209
13,8855,5644,760
13,8855,5644,760
Page 43
LAKES ACADEMIES TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD ENDED 3I AUGUST 2OI7
5. lnvestment income
lnvestment income
6. Expenditure
Expenditure on raising voluntary income
Activities:Direct costsSupport costs
7. Analysis of expenditure by activities
Funding for educational activities
Analysis of direct costs
Educational suppliesSchool tripsWages and salariesNational insurancePension costDepreciation
341,907
2,535,543 341,907 437,539 3,314,989
Staff costs2017
Ê
2,157,097378,446
Unrestrictedfunds
2017t
Premises2017
â
Restrictedfunds
2017€
Other costs2017
f7,377
389,01741,145
Totalfunds
2017â
855
Total2017
I7,377
2,546,114761,498
Total2017
€
2,546,1',|4
855
Activitiesundertaken
directly20'17
t
Supportcosts2017
Ê
2,546,114 761,498 3,307,612
Total2017
Ê
199,96123,487
1,546,479143,657457,241175,290
Page 44
LAKES ACADEMIES TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD ENDED 3I AUGUST 2017
7. Analysis of expenditure by activities (continued)
Analysis of support costs
Staff costsCateringMaintenance of premises and equipmentCleaningRent and rateslnsuranceSecurity and transportProfessional feesOther suppoft costsLGPS return on assets, less interest
Expenditure - Analysis of specific expenses
lncluded within expenditure are the following transactions
fotalÊ
Ex-gratia payments 10,000
9.
Total2017
t374,35799,35168,25230,76620,15427,250
5,552112,68068,136
(45,000)
tat'*
lncluded within professional fees are governance costs of Ê15,976 associated with the strategicmanagement, as opposed to the day to day management, of the charity's activities. These costs willinclude any employee benefits for trusteeship, the cost of charity employees involved in meetings withtrustees, the cost of any administrative support provided to the trustees, and costs relating to constitutionaland statutory requirements including audit and preparation of statutory accounts.
I
Individual items above €5,000Amount
Ê
The legal authority sought to make ex-gratia payments was in compliance with the Academies FinancialHandbook 2016, being delegated authority or approvalfrom the Education and Skills Funding Agency.
Net income/(expenditure)
This is stated after charging
2017Ê
Depreciation of tangible fixed assets:- owned by the charity
Operating lease paymentsAuditor's remuneration - audit servicesAuditor's remuneration - other services
175,29012,267
9,0001,500
Page 45
LAKES ACADEMIES TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD ENDED 3I AUGUST 2017
10. Staff costs
Staff costs were as follows
Wages and salariesSocial security costsOperating costs of defined benefit pension schemes
Supply teacher costs
The average number of persons employed by the academy during the period was as follows:
TeachersAdministration and supportManagement
ln the band f 70,001 - [80,000ln the band Ê90,001 - f '100,000
2017â
I,847,995169,453504,285
2,521,73313,810
2,535,543
2017No.
2122
6
2017No.
,l
1
49
The number of employees whose employee benefits (excluding employer pension costs) exceededf60,000 was:
The key management personnel of the academy comprises the Senior Management Team as detailed onpage 1. The total amount of employee benefits (including employer pension contributions) received by keymanagement personnel for their services to the academy trust was Ê432,218.
11. Gentral services
No central services were provided by the academy to its academies during the period and no centralcharges arose.
Page 46
LAKES ACADEMIES TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD ENDED 31 AUGUST 2017
12. Trustees'remunerationandexpenses
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:
A Draper
K Roberts
RemunerationPension contributions paid
RemunerationPension contributions paid
20'17r.
95,000-100,00015,000-20,000
30,000-35,0005,000-10,000
During the period ended 31 August 2017, expenses totalling t271 were reimbursed to 1 Trustee for travelcosts incurred.
13. Trustees' and Officers' lnsurance
lThe academy trust has opted into the Department for Education's risk protection arrangement (RPA), analternative to insurance where UK government funds cover losses that arise. This scheme protectstrustees and officers from claims arising from negligent acts, errors or omissions occurring whilst onacademy business, and provides cover up to Ê10,000,000. lt is not possible to quantifythe Directors andofficers indemnity element from the overall cost of the RPA scheme.
Page 47
LAKES ACADEMIES TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTSFOR THE PER¡OD ENDED 31 AUGUST 2017
14. Tangible fixed assets
Cost or valuation
At 10 June 2016AdditionsTransfer onconversion
Plant and Fixturesmachinery and fittings
Ê€
Gomputer Other fixedequipment assets
€t
Long-termleaseholdproperty
t
37,960
107,476
13,558
31,650
51,170
Total€
102,688
12,816,12112,665,230 11,765
At 31 August2017 12,665,230 11,765 145,436 45,208 51,170 12,918,809
Depreciation
At 10 June 2016Charge for the period 140,708 3,353 10,397 20,832 175,290
At 31 August2}lT
Net book value
At 31 August2017
140,708 3,353 10,397 20,832 175,290
12,524,522 8,412 135,039 24,376 51,170 12,743,5',19
15. Stocks
Finished goods and goods for resale
20'17€
6,271
16. Debtors
Trade debtorsOther debtorsPrepayments and accrued income
2017€
2,93655,355
491,070
549,361
Page 48
LAKES ACADEMIES TRUST
(A company limited by guarantee)
NOTES TO THE FINANGIAL STATEMENTSFOR THE PERIOD ENDED 31 AUGUST 2017
17. Greditors: Amounts falling due within one year
Trade creditorsOther taxation and social securityOther creditorsAccruals and deferred income
2017€
105,39670,80158,947
181,083
4',16,227
Ê
Deferred incomeResources deferred during the year 94,300
:All of the deferred income at 31 August2017 relates to Universal Infant Free School Meals which will bereleased over the year to 31 August 2018.
Page 49
LAKES ACAÐEMIES TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD ENDED 31 AUGUST 2017
18. Statement of funds
Unrestricted fundsGeneral Funds - all funds
Restricted funds
General Annual Grant(cAG)Start up grantPupilPremiumEarly Years FundingOther EFSA/DfEOther restricted fundsKnowles SponsorshipgrantPension reserve
Restricted fixed asset funds
Restricted Fixed AssetFunds - all fundsDfE,EFSA,LA capitalgrantsCapital expenditure fromfree reserves
lncome ExpenditureÊÊ
Balance atl0 June
2016€
Transfersin/out
â
Gains/(Losses)
Ê
Balance at31 August
2017Ê
602,302 (7,3771 (115,541) 479,384
2,177,29775,000
282,41490,656
104,36295,636
110,000(t,504,000)
(2,204,2541(75,000)
(282,4141(90,656)
(104,362)(95,636)
(110,000)(170,000)
26,957
(23,000) (1,697,000)
1,431,365 (3,132,3221 26,957 (23,000) (1,697,000)
12,816,121
14,104
(173,4751 14,104
(14,104)
88,584
12,656,750
(1,815) 86,769
12,830,225 (175,290) 88,584 12,743,519
14,261,590 (3,307,612) 115,541 (23,000) 11,046,519Total restricted funds
Total offunds 14,863,892 (3,314,989) (23,000) 11,525,903
The specific purposes for which the funds are to be applied are as follows:
Restricted general fundsThe restricted general fund consists of recurrent grants, the use of which is restricted to educationalpurposes.
Other ESFA/DfE Grants includes balances for the PE and Spotts Grant, Rates Relief and the RegionalGrowth Fund. The balances will remain restricted and be used to further support the pupils of theacademy trust.
Other restricted funds include balances for Special Educational Needs and the Refugee Support Grant.
Page 50
LAKES ACADEMIES TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD ENDED 31 AUGUST 2OI7
18. Statement of funds (continued)
Pupil Premium provides funding to raise the attainment of disadvantaged pupils and support pupils withparents in regular armed forces.
Early Years Funding provides funding for 3 to 4 year olds.
Under the funding agreement with the Secretary of State, the Academy Trust was not subject to a limit on
the amount of GAG that it could carry fonruard at 31 August 2017.
Restricted fixed asset fundsThe government capital funds are provided by the government for specific and Trust capital projects
Unrestricted fundsThese funds relate to unrestricted income to be used to support the Academy Trust's objectives andeducational activities.
Analysis of academies by fund balance
Fund balances at 31 August 2017 were allocated as follows:
Total2017
Ê
Water Hall Primary SchoolKnowles Primary School
177,172302,212
Total before fixed asset fund and pension reserve
Restricted fixed asset fundPension reserve
Total
Analysis of academies by cost
Expenditure incurred by each academy during the year was as follows:
Teachingand
educationalsupport
staff costsÊ
1,494,728662,369
Water Hall Primary SchoolKnowles Primary School
Othersupport Educational
staff costs suppliesʀ
253,043 164,540'125,403 35,421
Other costsexcludingdepreciat-
ionÊ
282,39612'1,799
479,384
'12,743,519(1,697,000)
11,525,903
Total2017
f2,194,707
944,992
2,157,097 378,446 199,961 404,195 3,139,699
Page 51
LAKES ACADEMIES TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTSFOR THE PER¡OD ENDED 31 AUGUST 2OI7
19. Analysis of net assets between funds
Tangible fixed assetsCurrent assetsCreditors due within one yearProvisions for liabilities and charges
Unrestrictedfunds
2017Ê
801,311(321,927)
Restrictedfunds
2017I
94,300(94,300)
(1,697,000)
Restrictedfixed asset
funds2017
Ê
12,743,519
Totalfunds
2017Ê
12,743,519895,611
(416,2271(t,697,000)
2017â
1l,548,903
175,290(855)
(6,271)(549,361)416,227(14,104)
1,504,000215,000(45,000)
(573,2021('12,816,1211
(145,494)
2017Ê
339,979
339,979
479,384 (1,697,000) 12,743,519 11,525,903
20. Reconciliation of net movement in funds to net cash flow from operating activities
Net income for the year (as per Statement of Financial Activities)
Adjustment for:Depreciation chargesDividends, interest and rents from investmentslncrease in stockslncrease in debtorslncrease in creditorsCapital grants from DfE and other capital incomeDefined benefit pension scheme obligation inheritedDefined benefit pension scheme cost less contributions payableDefined benefit pension scheme finance costCash transferred on conversion to an academy trustFixed assets transferred from local authorities
Net cash used in operating activities
21. Analysis of cash and cash equivalents
Cash at bank and in hand
Total
Page 52
LAKES I\CADEMIES TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD ENDED 31 AUGUST 2017
22. Gonversion to an academy trust
On 1 August 2017 Water Hall Primary School converted to academy trust status under the Academies Act2010 and all the operations and assets and liabilities were transferred to Lakes Academies Trust fromMilton Keynes Council for fnil consideration.
The transfer has been accounted for as a combination that is in substance a gift. The assets and liabilitiestransferred were valued at their fair value and recognised in the Balance Sheet under the appropriateheadings with a corresponding net amount recognised as a net gain in the Statement of FinancialActivities as Donations - transfer from local authority on conversion
The following table sets out the fair values of the identifiable assets and liabilities transferred and ananalysis of their recognition in the Statement of Financial Activities.
Tangible fixed assets
Leasehold land and buildingsOther tangible fixed assets
Budget surplus on LA fundsLGPS pension deficit
Unrestrictedfunds
t
Restrictedfunds
Ê
Restrictedfixed asset
fundsI
Totalfunds
€
6,204,196102,112
264,761(523,000)
6,204,196102,112
264,76',|.(523,000)
Net assets/(liabil ities) 264,761 (523,000) 6,306,308 6,048,069
The above net assets include î264,761 that were transferred as cash.
The leasehold land and buildings were transferred from the local authority on a 125 year lease
Page 53
LAKES AGADEMIES TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD ENDED 31 AUGUST 2OI7
Gonversion to an academy trust (continued)
On 1 May 2017 Knowles Primary School converted to academy trust status under the Acadmies Act 2010and all the operations and assets and liabilities were transferred to Lakes Academies Trust from MiltonKeynes Council for [nil consideration.
The transfer has been accounted for as a combination that is in substance a gift. The assets andliabilities transferred were valued at their fair value and recognised in the Balance Sheet under theappropriate headings with a corresponding net amount recognised as a net gain in the Statement ofFinancial Activities as Donations - transfer from local authority on conversion.
The following table sets out the fair values of the identifiable assets and liabilities transferred and an
analysis of their recognition in the Statement of Financial Activities.
Unrestricted Restrictedfunds funds
ÊÊ
Restrictedfixed asset
fundsÊ
Total fundst
6,461,03448,779
308,441(981,000)
Tangible fixed assets
Leasehold land and buildingsOther tangible fixed assets
Budget surplus on LA fundsLGPS pension deficit
6,461,03448,779
23
308,441(981,000)
Totat 308,441 (981,000) 6,509,813 5,837,254::::
The above net assets include t308,441 that were transferred as cash.
The leasehold land and buildings were transferred from the local authority on a 125 year lease.
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 Buckinghamshire County Council. Both are Multi-employer defined benefit pension schemes.
As described in note 22The LGPS obligation relates to the employees of the academy trust, who were theemployees transferred as pad of the conversion from the maintained school and new employees whowere eligible to, and did, join the Scheme in the year. The obligation in respect of employees whotransferred on conversion represents their cumulative service at both the predecessor school and theacademy trust at the balance sheet date.
The latest actuarial valuation of the TPS related to the period ended 31 March 2012 and of the LGPS 31
March 2016.
Contributions amounting to Ê58,915 were payable to the schemes at 31 August2017 and are includedwithin creditors.
Page 54
LAKES ACADEMIES TRUST
(A company limited by guarantee)
NOTES TO THE FINI\NCIAL STATEMENTSFOR THE PERIOD ENDED 31 AUGUST 2OI7
23. Pension commitments (continued)
Teachers' Pension Scheme
lntroduction
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 January 2007,automatic for teachers in part-time employment following appointment or a change of contract, althoughthey are able to opt out.
The TPS is an unfunded scheme and members contribute on a 'pay as you go' basis - these contributionsalong with those made by employers are credited to the Exchequer. Retirement and other pensionbenefits are paid by public funds provided by Parliament.
Valuation of the Teachers' Pension Scheme
The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPSin accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014published by HM Treasury. The aim of the review is to specify the level of future contributions. Actuarialscheme valuations are dependent on assumptions about the value of future costs, design of benefits andmany other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2012 and inaccordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014. Thevaluation report was published by the Department for Education on I June 2014. The key elements of thevaluation and subsequent consultation are:
employer contribution rates set al 16.48o/o of pensionable pay, including a 0.08% employeradministration charge (currently 1 4.1o/o)
total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) forservice to the effective date of f19'1,500 million, and notional assets (estimated future contributionstogether with the notional investments held at the valuation date) of Ê176,600 million giving a notionalpast service deficit of €14,900 millionan employer cost cap of 10.9% of pensionable pay will be applied to future valuations
the assumed real rate of return is 3.0% in excess of prices and 2o/o in excess of earnings. The rate ofreal earnings growth is assumed to be 2.75o/o. The assumed nominal rate of return is 5.06%.
During the previous year the employer contribution rate was 14J%. The TPS valuation for 2012determined an employer rate of 16.40/0, which was payable from September 2015. The next valuation ofthe TPS is currently underway based on April 2016 data, whereupon the employer contribution rate isexpected to be reassessed and will be payable from 1 April2019.
The employer's pension costs paid to TPS in the period amounted to î.172,943.
A copy of the valuation report and supporting documentation is on the Teachers' Pensions website(www.teacherspensions.co.uk/news/employers/20'14l06/publication-of-the-valuation-report.aspx).
Under the definitions set out in FRS 102, the TPS is a multi-employer pension scheme. The trust hasaccounted for its contributions to the scheme as if it were a defined contribution scheme. The trust has setout above the information available on the scheme.
a
a
a
a
Page 55
LAKES ACADEMIES TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD ENDED 31 AUGUST 2OI7
23. Pension commitments (continued)
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 period ended 31 August 2017 was î.149,259, of which employer'scontributions totalled f115,039 and employees' contributions totalled t34,219. The agreed contributionrates for future years are 19.1-20o/o for employers.
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 1B July 2013.Principal actuarial assumptions:
2017
Discount rate for scheme liabilities 2.60 %Rate of increase in salaries 4.20 %Rate of increase for pensions in payment / inflation 2.70 %
The current mortality assumptions include sufficient allowance for future improvements in mortality ratesThe assumed life expectations on retirement age 65 are:
2017
Retiring todayMalesFemales
Retiring in 20 yearsMalesFemales
Sensitivity analysis
Discount rate +0.1%Discount rate -0.1%Mortality assumption - 1 year increaseMortality assumption - 1 year decrease
23.926.0
26.228.3
At 3l August2017
€
1,0491,1181,1181,050
Page 56
LAKES ACADEMIES TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD ENDED 31 AUGUST 2OI7
23. Pension commitments (continued)
The academy's share of the assets in the scheme was:
EquitiesGiltsCorporate bondsPropertyCash and other liquid assetsAlternative assetsHedge fundsAbsolute return portfolio
Total market value of assets
Current service costReturn on assets, less interest costLess employer's contribution
Total
Movements in the present value of the defined benefit obligation were as follows:
Upon conversionlnterest costEm ployee contributionsCurrent service costChange in financial assumptions
Fair value at31 August
2017Ê
760,000131,000177,000101,00047,00015,00065,00065,000
The actual return on scheme assets was Î81,000
The amounts recognised in the Statement of financial activities incorporating income and expenditureaccount are as follows:
I,361,000
2017€
329,000(45,000)
(114,000)
170,000
2017Ê
2,636,00036,00034,000
329,00023,000
3,058,000Closing defined benefit obligation
Page 57
LAKES ACADEM¡ES TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD ENDED 31 AUGUST 2017
23.
25
Pension commitments (continued)
Movements in the fair value of the academy's share of scheme assets
Upon conversionlnterest incomeEmployee contributionsEmployer contributionsReturn on assets less interest
2017€
1,132,00016,00034,ooo
114,00065,000
Closing fair value of scheme assets 1,361,000
24. Operating lease commitments
At 31 August2017 the total of the Academy trust's future minimum lease payments under non-cancellableoperating leases was:
2017Ê
Amounts payable:
Within 1 year 5,661
Members' liability
Each member of the charitable company undertakes to contribute to the assets of the company in theevent of it being wound up while he/she is a member, or within one year after heishe ceases to be amember, such amount as may be required, not exceeding fNlL for the debts and liabilities contractedbefore he/she ceases to be a member.
Page 58
LAKES ACADEMIES TRUST
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD ENDED 31 AUGUST 2017
26. Related party transactions
Owing to the nature of the academy's operations and the composition of the board of trustees being drawnfrom local public and private sector organisations, transactions may take place with organisations in whichthe trust has an interest. All transactions involving such organisations are conducted in accordance withthe academy's financial regulations and normal procurement procedures.
The following related party transactions took place in the period of account.
That Undiscovered Country Limited - a company in which R. Leighton (a trustee of the trust) has amajority interest:The trust purchased services for Brain Week totalling Ê2,500 during the year. There were no amountsoutstanding at 31 August2017. The trust made the purchase at arm's length. As this was a bespokeservice no alternative quotes could be obtained.
M. Sharp - an employee of Water Hall Primary School who is the wife of E. Sharp (a trustee of the trust).M. Sharp received remuneration of f 18,385 and employer pension contributions of Ê3,58'1.M. Sharp was appointed several years ago before E. Sharp became a trustee or governor of the school.
Page 59