Equitas Academies Trust

(A Company Limited by Guarantee)

Annual Report and Financial Statements

Year Ended 31 August 2015

Company Registration Number:

07662289 (England and Wales)

Equitas Academies Trust

Contents

Reference and Administrative Details...... 3

Trustees’ Report...... 4

Governance Statement

Statement on Regularity, Propriety and Compliance

Statement of Trustees’ Responsibilities

Independent Auditor’s Report to the Trustees of Equitas Academies Trust...... 16

Independent Reporting Accountant’s Assurance Report on Regularity...... 18

Statement of Financial Activities for the year ended 31 August 2015

Balance Sheet as at 31 August 2015

Cash Flow Statement for the year ended 31 August 2015

Notes to the Financial Statements, incorporating:

Statement of Accounting Policies

Other Notes to the Financial Statements...... 27

EQUITAS ACADEMIES TRUST

REFERENCE AND ADMINISTRATIVE DETAILS

TrusteesR Linforth - Chair

S Spencer** – Vice Chair

H Roberts – Executive Principal

A Lofthouse**

Z Khan*

R Jesson*

D Carey

J Moore**

M Bartley*

D Jones**

V Camfield*

E Lawson*

*membersof theFinanceand General Purposes Committee

** members of the Audit Committee

MembersR Linforth

S Spencer

A Lofthouse

SeniorManagementTeam:H Roberts –Executive Principal

C Salt –Headteacher (Resigned 10 April 15)

N Lambert –Headteacher

J Sweeney –Deputy Headteacher

S Troman – Deputy Headteacher (Appointed 1 April 15)

C Simmons – Deputy Headteacher

Principal andRegistered OfficePhillips Street Aston

Birmingham

B6 4PZ

Company Registration Number07662289 (EnglandandWales)

Independent AuditorMoore Stephens LLP

35 Calthorpe Road

Edgbaston

Birmingham

B15 1TS

BankersHSBC

130 New Street

Birmingham

B2 4JU

SolicitorsBrowne Jacobson

Victoria Square House

Victoria Square

Birmingham

B2 4BU

EQUITAS ACADEMIES TRUST

Trustees’ Report

TheTrusteespresent theirannual report togetherwith thefinancial statementsandauditor’sreportof thecharitablecompanyfor theyearended31August2015. The annual report serves the purpose of both a trustees’ report under charity law and a directors’ reports under company law.

The trust operates 1 primary and 1 secondary academy in Birmingham. Its academies have a combined pupil capacity of 1370and had a roll of 1298in the school census on 16 June2015.

Structure, Governanceand Management

Constitution

TheAcademy Trustisacompany limitedbyguaranteeand anexemptcharity. The CharitableCompany’sMemorandumandArticlesofAssociationaretheprimarygoverning documentsof theAcademy Trust.

TheTrusteesof Equitas Academies Trustarealsothedirectorsofthe Charitable Companyfor thepurposesofcompany law.The CharitableCompany isknownasEquitas Academies Trust.

The Trust comprises the following academy schools:

Aston Manor Academy

Chilwell Croft Academy

DetailsoftheTrusteeswhoserved throughout theyear,exceptasnoted,areincludedinthe ReferenceandAdministrativeDetailsonpage 3.

Members’ Liability

Each member of theCharitableCompanyundertakestocontributeto theassetsofthe Charitable Company in theevent of itbeingwoundupwhile theyareamember,orwithinoneyearafter they cease tobeamember, suchamountasmayberequired,notexceeding£10, for thedebtsand liabilitiescontractedbeforetheyceasedtobeamember.

Trustees’ Indemnities

The Trust has purchased insurance to cover Trustees and officers from claims arising from negligent acts, errors or omissions occurring whilst on Trust business. Details of the costs can be found in note 11 of the accounts.

Methodof Recruitment andAppointmentorElectionof Trustees

The members of the Trust are responsible for the appointment of Trustees except two parent Trustees and two staff members who will be appointed through an election process directed by the Trust Board. In the event that these are not filled, the members of the Trust are able to appoint to these positions.

PoliciesandProceduresAdoptedfor theInductionandTrainingof Trustees

Trustees are appointed based on the skills that they will bring to the Trust Board or based on a proposal to the Trust Board by representative groups. On appointment, Trustees receive information relating to the Trust and attend a briefing and receive an induction pack on the role and responsibilities of Trustees. Newly appointed Trustees are also given a buddy governor.

EQUITAS ACADEMIES TRUST

Trustees’Report (continued)

During the year, Trustees are offered all necessary training.

OrganisationalStructure

The governance of the Trust is defined in the Memorandum and Articles of Association together with the funding agreement with the Department for Education.

All Trustees are members of the Trust Board. In addition Trustees are members of committees who report to the full Trust Board.

The sub-committees of the Trust Board are the:

  • Raising Standards
  • Finance and General Purposes
  • Audit
  • Premises and Health & Safety

Related Parties and other Connected Charities and Organisations

During the year, the Trust continued to work with the Titan Partnership, which included training our own teachers through the Initial Teacher Training Programme.

Objectives and Activities

ObjectsandAims

The Trust’s object is to advance, for the public benefit, education for children aged 4 to 19 by establishing and maintaining, Academies which offer a broad and balanced curriculum.

The Trustees vision is to create a culture of success to extend lifetime opportunities for young people and to do everything possible to encourage this. Aston Manor Academy is recognised by Ofsted as good with outstanding features.

Students are offered a supportive, positive and dynamic learning environment that enables them to focus on their studies and extra-curricular activities. As a result, students achieve academic and technological advancement and extend their sporting, artistic and musical accomplishments.

The Trust fosters personal development that helps students to find meaning in their lives and respond with creativity and determination to the challenges that arise through the rapid pace of social change.

Objectives,StrategiesandActivities

The Trusts’ objectives for the year ended 31st August 2015 was to raise the attainment level of all students through care and well-being, curriculum structure, teaching and learning, and leadership development.

Student roll – the total number on roll for theyear as at 31st August 2015 was 905for Aston Manor Academy and 399 for Chilwell Croft Academy.

Admissions – AstonManorAcademy is currently over-subscribed with a waiting list for each year group.

Attendance – the attendance level achieved for the year was 95.29% for Aston Manor Academy and 94.69% for Chilwell Croft Academy.

EQUITAS ACADEMIES TRUST

Trustees’Report (continued)

Permanent exclusions – the aim is to have permanent exclusions only in exceptional circumstances. Aston Manor Academy had 3 permanent exclusions during the year to 31st August 2015 and Chilwell Croft Academy had2.

Staffing – the average number of (full time equivalent) staff employed during the year to 31 August 2015was 165.

PublicBenefit

The Trust promotes for the benefit of community members of Aston/Newtown and the surrounding area the provision of facilities for recreation or other leisure time activities. The Academy already works in partnership with Phoenix United and Mount Zion Church in enabling them to use their facilities.

The Multi Academy TrustTrustees have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission in exercising their powers of duties.

STRATEGIC REPORT

AchievementsandPerformance

Tables 1, 2 and 3 below provide a summary of the Academy’s performance in the summer 2015 examination season.

Table 1. Summary ofKS2 SAT examination results 2015

KS2 SAT results / 2015
Achieving Level 4 or above in Reading/Writing/Maths / 70%
Achieving Level 4 or above in Reading / 81%
Achieving Level 4 or above in Writing / 87%
Achieving Level 4 or above in Maths / 74%
Making expected progress in Reading / 87%
Making expected progress in Writing / 78%
Making expected progress in Maths / 79%
Please note – These figures are provisional

Table 2. Summary of GCSE examination results 2015

GCSE / 2015
5A*-C / 71%
5A*-C Inc. English and Maths / 55%
5A*-G / 99%
5A*-G Inc. English and Maths / 55%
1A*-G / 99%

EQUITAS ACADEMIES TRUST

Trustees’ Report (continued)

Table 2. Summary of A-Level and equivalent study examination results 2015

A Level / 2015
Average points score per candidate / 712.5
Average points score per entry / 224.9
% of students achieving 3 A*- E grades / 76%
% of students achieving 2 A* - E grades / 97%
% of students achieving 1 A* - E grades / 100%
Please note – These figures are provisional

Key Performance Indicators

The key set of data that is used for Key Stage 4 performance and target setting is pupils’ Key Stage 2 attainment. The Key Stage 2 levels which the pupils have achieved prior to joining the Academy and we base our Key Stage 4 targets on four levels of progress from pupils’ Key Stage 2 levels. Our Key Stage 5 target setting process is based on the ALPS tool, which generates aspirational targets for AS/A2 subjects based on the students Key Stage 4 average points score. The ALPS tool also compares our actual and forecasted performance against averages.

GoingConcern

Aftermakingappropriateenquiries, theBoard of Trusteeshasareasonableexpectationthat the Academy Trusthasadequateresourcestocontinueinoperational existencefor theforeseeable future. For thisreason it continuestoadopt thegoingconcernbasisinpreparing thefinancial statements.Further details regarding theadoptionofthegoingconcernbasiscanbefound inthe Statement ofAccountingPolicies.

FinancialReview

The Trust’s financial position demonstrates total income of £10,102,038 with a surplus at the 31 August of £241,308. The surplus has been allocated to reserves.

The reserves will be utilised for continuous improvement and for projects for the repair and replacement of educational equipment and materials. Reserves will also be allocated to the repair, replacement and updating of the Trust’s buildings, plant, equipment and contents.

The principal source of funding is derived from the EFA under the General Annual Grant. This totaled £7,985,333 across the Trust.

A strategic school improvement plan is prepared and reviewed each year by the Trustees in order that reserves can be prioritised and spent according to the needs of the Trust.

The principal financial management policies adopted in the year are:

  • Conducting regular financial reviews of income and expenditure versus planned budgets at the Finance and General Purposes Committee meetings.
  • Consideration as to whether the financial income demonstrates a robust and stable position enabling the provision of sufficient quality resources to fulfill the Trust’s educational obligations.

Reserves carried forward at 31 August 2015 will be utilised as part of the medium and long term plans of the Trust to improve and update its educational resources, materials and equipment, and additionally provide a continuous improvement plan to maintain and repair the site and facilities.

EQUITAS ACADEMIES TRUST

Trustees’ Report (continued)

ReservesPolicy

The level of reserves held at 31 August 2015 was £17,281,600. The value of free reserves held at 31 August 2015 is £539,398. The reserves will be allocated and spent as part of the Academy Improvement Plan to update, improve and maintain its facilities and resources. This reserve has been built up in order to provide sufficient working capital and to provide a cushion to deal with unexpected emergencies. In future years, budgets are due to be decreased and we will use some of this reserve to support staff costs and avoid redundancies as far as possible. We also will endeavour to keep class sizes as small as possible in order to support the quality of learning.

InvestmentPolicy

The Trustees have decided that funds that the Trust does not immediately need to cover anticipated expenditure are invested in such a way as to maximise the Academy’s income but with minimal risk. The Academy does not consider the investment of surplus funds as a primary activity, rather as a result of good stewardship and as and when circumstances allow.

The Trust had invested the sum of £200,921 in a HSBC Money Market account as at 31 August 2015. This is a short term investment. The object of this account is to hold the reserves at low risk.

The Trust does not have any endowment funds.

Principal RisksandUncertainties

The Trust has implemented a risk register and a risk review process that is reviewed termly. The objectives will be determined, and where it is considered necessary, measures of control and mitigation in order to manage risk will be put in place.

The principal risks are the loss of reputation through falling standards, falling student rolls and failure to safeguard the students of the Trust.

Key controls in place are:

  • An organised structure with defined roles, responsibilities and authorisation levels
  • Terms of Reference for the committees of the Trust Board
  • Financial planning, budgeting and regular management reporting highlighting areas of financial risk
  • Formal written and published policies for employees
  • Vetting procedures as required by law for the protection of the vulnerable.

The Trust has recognised its share of the Local Government Pension Scheme (LGPS) assets and liabilities in accordance with Financial Reporting Standard no.17. A deficit has been recognised at 31 August 2015. Future contribution rates are adjusted so as to reduce this deficit.

RiskManagement

The Trustees have assessed the major risks to which the Trust is exposed, in particular those related to the operations and finances of the Trust, and are satisfied that systems are in place to mitigate any exposure to major risks.

EQUITAS ACADEMIES TRUST

Trustees’ Report (continued)

A formal review of the Trust’s risk management process is undertaken on an annual basis and key controls in place include:

  • Formal agendas for all committee activity
  • Terms of reference for all Trust Board delegated committees under the direction of the Trust Board
  • Pecuniary interests of Trustees reviewed at each meeting
  • Comprehensive budgeting and management reporting
  • Established organisational structure and clear lines of reporting
  • Formal written policies
  • Clear authorisation and approval levels
  • Vetting procedures as required by law for the protection of the vulnerable

It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

Plans forFuture Periods

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

The curriculum, the quality of teaching and learning and informed interventions are consistently reviewed to help every child achieve their full potential.

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

FundsheldasCustodianTrusteeonbehalf of others

Neither Equitas Academies Trust nor the Board of Directors/Trustees is acting as third party custodial trustees.

Auditor

InsofarastheTrusteesareaware:

there isnorelevantaudit informationofwhich thecharitablecompany’sauditorisunaware; and

theTrusteeshave takenall stepsthat theyought tohave takentomake themselvesaware ofanyrelevantaudit informationandtoestablishthat theauditor isawareofthat information.

ChantreyVellacott DFK LLP has merged its practice with Moore Stephens LLP and now practices under the name of Moore Stephens LLP. A resolution to appoint Moore Stephens LLP as auditor will be proposed at the forthcoming annual general meeting.

Trustees’ report, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 07 December 2015 and signed on the boards behalf by:

Professor R.Linforth

Chair of Trustees

EQUITAS ACADEMIES TRUST

Governance Statement

Scope of Responsibility

AsTrustees, weacknowledgewehaveoverall responsibilityfor ensuring thatEquitas Academies Trust hasaneffectiveandappropriatesystem of control,financial andotherwise.Howeversucha systemisdesignedtomanagerather thaneliminatetheriskof failuretoachievebusiness objectives,andcanprovideonlyreasonableandnotabsoluteassuranceagainstmaterial misstatementorloss.

TheBoard of Trustees hasdelegatedtheday-to-dayresponsibilityto theExecutive Principal,as Accounting Officer, for ensuringfinancial controlsconform withtherequirementsofbothproprietyandgood financialmanagement andinaccordancewith the requirementsandresponsibilitiesassignedtoit in thefundingagreement betweenthe Trustandthe SecretaryofStatefor Education. Theyarealsoresponsiblefor reporting totheTrust Boardanymaterial weaknesses orbreakdownsininternal control.

Governance

The information on governance included here supplements that described in the Trustees’ Report and in theStatement of Trustees/Trustees responsibilities. Attendance during the year at meetings of the Trust Board was as follows:

Full Trust Board meetings

Governor / Meetings attended / Out of a possible
RLinforth / 6 / 6
S Spencer / 6 / 6
A Lofthouse / 5 / 6
Z Khan / 6 / 6
R Jesson / 6 / 6
D Carey / 2 / 6
J Moore / 2 / 6
M Bartley / 6 / 6
D Jones / 5 / 6
V Camfield / 5 / 5
E Lawson / 4 / 4

Finance and General Purposes Committee

Governor / Meetings attended / Out of a possible
Z Khan / 4 / 5
R Jesson / 5 / 5
M Bartley / 4 / 5
V Camfield / 4 / 4
E Lawson / 1 / 1

The Finance and General Purposes Committeesaresubcommittees of the main board of Trustees whose purpose is monitor the financial performance of the Academies in the Trust.

Audit Committee

Governor / Meetings attended / Out of a possible
D Jones / 2 / 2
S Spencer / 2 / 2
A Lofthouse / 2 / 2
J Moore / 0 / 2

EQUITAS ACADEMIES TRUST

Governance Statement (continued)

The Audit Committee is also a sub-committee of the main board of trustees. Its purpose is to over see the audit proceedings of the Trust.

Review of Value for Money

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

The accounting officer considers how the Trust’s use of its resources has provided good value for money during each academic year, and reports to the Board of Trustees where value for money can be improved, including the use of benchmarking data where available.

During the year ended 31 August 2015, the Academy Trust’s focus on achieving value for money has included the following areas:

Budgeting – A budget for the year ended 31st August 2015 was approved by the finance committee on 22 June 2015. Expenditure made during the year has been controlled by budget holders in accordance with this budget. Centralised purchasing in the finance departments at both schools ensures that no purchases can be made without exceeding the budget for the year without appropriate authorisation.

Use of Resources – The Academy Trust has deployed equipment, materials and services to provide pupils and staff with resources which support teaching and learning. For example both schools have had significant refurbishments such as electrical re-wiring, window replacements and boiler replacements has resulted in energy cost savings which can be re-deployed to other areas of the budget.

Purchasing – The Academy Trust has maintained and developed as necessary procedures for assessing need, and obtaining goods and services which provide best value in terms of suitability, efficiency, time and cost.

Statement of Internal Control

ThePurposeof theSystem of Internal Control

Thesystem ofinternal control isdesigned tomanagerisk toareasonablelevel rather thanto eliminateall riskof failure toachievepolicies,aimsandobjectives.It canthereforeonlyprovide reasonableandnot absoluteassuranceofeffectiveness. Thesystemofinternal control isbasedon anongoingprocessdesignedto identifyandprioritise theriskstotheachievementof the Academy Trust policies,aimsandobjectives, toevaluatethelikelihoodofthoserisksbeingrealisedandthe impact should theyberealised,andtomanagethemefficiently,effectivelyandeconomically. The systemofinternal controlhasbeen inplaceinEquitas Academies Trust for theyearended31 August2015 andupto thedateofapproval oftheannualreport andfinancial statements.