BUCKINGHAMSHIRE UNIVERSITY TECHNICAL COLLEGE€¦ · Buckinghamshire, South West Hertfordshire and edging on to Oxfordshire. It has an ideal student capacity of around 350 – 400,

BUCKINGHAMSHIRE UNIVERSITY TECHNICAL COLLEGE

(A Company Limited by Guarantee)

ANNUAL REPORT & FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2014

Registered Number 07648803 (England and Wales)


FINANCIAL STATEMENTS


CONTENTS

PAGE

Reference and Administrative Details Trustees’ Report

1

3

Governance Statement 10

Statement of Regularity, Propriety and Compliance 13

Statement of Trustees’ Responsibilities 14

Independent Auditor’s Report on the Financial Statements 15

Statement of Financial Activities (incorporating Income & Expenditure Account) 17

Balance Sheet 18

Cash Flow Statement 19

Notes to the Financial Statements, incorporating: Statement of Accounting Policies Other Notes to the Financial Statements

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DESIGNATED MEMBERS AND ADVISORS


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Reference and Administrative Details Governors (Trustees) Dr Michelle Selinger Mrs Simin Alaee Mr Mike Appleyard Ms Kathryn Baddeley Mr Russ Brittain Mr Paul Churchouse Dr Timothy Coole Mr Baljit Dhillon (M) Dr Ruth Farwell (M) Ms Beverley Flanagan Mr Andy Keegan Ms Susan Leddington Mrs Amanda Lyons Mrs Karen Mitchell (M) Mrs Pauline Odulinski (M) Mr Alan Sherwell Mr Eric Sisi Ms Jo Whistler Mr Peter Redfern (M only) (M) Denotes Member

Chair – Cisco International Ltd

Appointed Sept 2012

Staff Buckinghamshire County Council Cisco International Ltd Taylor Wimpey PLC

Appointed Feb 2014 Appointed Sept 2012 Appointed Dec 2013 Appointed Jul 2014

Vice Chair -Taylor Wimpey PLC Resigned Jul 2014 Buckinghamshire New University Appointed Dec 2012 Buckinghamshire New University Appointed Dec 2012 Buckinghamshire New University Appointed May 2011 Principal and Accounting Officer

Ex-officio Governor Appointed Sep 2012

Esri (UK) Limited Appointed Sept 2012 Buckinghamshire New University Parent

Appointed Dec 2012 Resigned Dec 2013 Appointed Feb 2014

Aylesbury College Appointed Dec 2012 Aylesbury College Appointed May 2011 Aylesbury College Appointed Dec 2012 McAfee International Limited Aylesbury College Taylor Wimpey PLC

Appointed Sept 2012 Appointed May, 2014

Company Secretary Ms Sarah Sarll replaced by Mr Bob Carvey Aug, 2014 Senior Management Team:

Principal

Vice Principal

Business Services Director

Ms Beverley Flanagan Ms Sarah Newall Mr Bob Carvey (Appointed Aug 2014)

Principal and Registered Office Oxford Road

Aylesbury Buckinghamshire HP21 8PB

Company Registration Number 07648803 (England and Wales) Independent Auditor Baker Tilly UK Audit LLP

Highfield Court Tollgate Chandlers Ford Eastleigh Hampshire SO53 3TY


DESIGNATED MEMBERS AND ADVISORS (continued)


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Bankers Lloyds TSB 1 Market Square Aylesbury Buckinghamshire HP20 1TD

Solicitors Kidd Rapinet Solicitor

Western House 14 Rickfords Hill Aylesbury HP20 2RX


TRUSTEES’ REPORT FOR THE YEAR ENDED 31.8.2014

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The governors present their annual report together with the financial statements and auditors’ report of the charitable company for the year ended 31 August 2014. The annual report serves the purpose of both a trustees’ report, and a directors’ report under company law. The charitable company was incorporated on 26 May 2011 and commenced business as a standalone University Technical College (the UTC) specialising in Construction and IT at the start of this period. The trust operates the UTC for students aged 14 – 19 serving a catchment area across Buckinghamshire, South West Hertfordshire and edging on to Oxfordshire. It has an ideal student capacity of around 350 – 400, thus allowing the necessary time and state of the art facilities to be given to students for their chosen speciality subject of either construction or IT. The building design states that 600 students could be accommodated. Students study for industry recognised qualifications which are valued by employers alongside their essential core curriculum subjects. The UTC offers a new kind of learning linking Construction and IT and giving a clear progression into employment, higher education or apprenticeships. The balance between the integrated strands of learning varies by age group. In Construction, students start by developing a broad foundation in a wide range of craft skills. They will then focus on two craft skills linked to sustainability. In Key Stage 5 students can specialise further in either the area of sustainable/renewable resources or in Heritage and Conservation. They will also see a pathway into the professional construction side. In IT, students will build broad foundation skills ranging from software development, hardware and networking skills, information security and e-commerce through to creative web and app design. The curriculum provides breadth through its mix of core studies, technical studies, work related activity, enrichment, transferable skills and apprenticeships. Students will achieve core education outcomes such as GCSE, BTEC., AS and A Level. Throughout their time at the UTC students are linked closely to employers including in this first year of operation, some students have already been linked to employers enjoying a valuable work placement leading to an employment opportunity. The UTC has four major corporate sponsors, namely Cisco, Esri UK, McAfee Intel and Taylor Wimpey who provide valuable resources in the form of workshops, visits, work placements, financial sponsorship and on-going contribution to the curriculum and Aylesbury Vale District Council who have provided sponsorship funds and facilities. There are two major academic sponsors in the form of Bucks New University and Aylesbury College. Bucks New University have played a major role also in sponsorship by providing a fully equipped gym, marketing sponsorship and on-going support in the curriculum. The Principal, members of staff and students wish to express their thanks for what is very generous sponsorship and time given by these sponsors. The Bucks UTC is a self-managing operation and is not an extension of the Aylesbury College or BNU. Structure, Governance and Management The Trust has undertaken to advance for the public benefit education in the United Kingdom, in particular but without prejudice to the generality of the foregoing by establishing, maintaining, carrying on, managing and developing a school offering a broad and balanced curriculum, which includes provision for technical education.

Constitution The University Technical College is a company limited by guarantee (registration number 07648803) and an exempt charity. The charitable company’s memorandum and articles of association are the primary governing documents of the academy trust. The governors act as the trustees for the charitable activities of Buckinghamshire University Technical College and are also the directors of the charitable company for the purposes of company law. The



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charitable company is known as Buckinghamshire UTC. Buckinghamshire University Technical College is more universally known as Bucks UTC. Details of the governors and senior officers who served during the period are included in the Reference and Administrative Details on page 1. Governors’ Indemnities Subject to the provisions of the Companies Act 2006 every Governor or other officer or auditor of the Academy Trust shall be indemnified out of the assets of the Academy Trust against any liability incurred by him/her in that capacity in defending any proceedings, whether civil or criminal, in which judgment is given in favour or in which he/she is acquitted or in connection with any applications in which relief is granted to him/her by the court from liability for negligence, default, breach of duty or breach of trust in relation to the affairs of the Academy Trust. A Governor may benefit from any indemnity insurance purchased at the Academy Trust’s expense to cover the liability of the Governors which by virtue of any rule of law would otherwise attach to them in respect of any negligence, default or breach of trust or breach of duty of which they may be guilty in relation to the Academy Trust: Provided that any such insurance shall not extend to any claim arising from any act or omission which the Governors knew to be a breach of trust or breach of duty or which was committed by the Governors reckless disregard to whether it was a breach of trust or breach of duty or not and provided also that any such insurance shall not extend to the costs of any unsuccessful defence to a criminal prosecution brought against the Governors in their capacity as directors of the Academy Trust. Members’ Liability Each member of the charitable company undertakes to contribute to the assets of the charitable company in the event of it being wound up while they are a member, or within one year after they cease to be a member, such amount as may be required, not exceeding £10, for the debts and liabilities contracted before they ceased to be a member. As at 31

st August, 2014 there were 5

members (2013: 4). Method of Recruitment and Appointment or Election of Governors

The basic regulations concerning the appointment of governors are specified in the Articles:

There are a maximum of 19 Governors.

The Sponsors appointed 12 governors : o Aylesbury College - 4 o Buckinghamshire New University - 4 o Employers: Esri UK, McAfee, Taylor Wimpey and Cisco (1 each) - 4

The local authority Buckinghamshire County Council appointed 1 Governor.

One of the 2 permitted Parent Governors was appointed.

A Staff Governor was appointed

None of the 2 permitted Co-opted Governors were appointed during the period.

The Principal is an ex-officio Governor.

The term of office is four years. As would be expected the above structure will be re-visited during the coming year to ensure that it’s structure and competencies are complementary to a now running UTC. Policies and Procedures Adopted for the Induction and Training of Governors The procedures for the induction of new governors continues to be developed along with a skills matrix exercise to be undertaken during the next financial year. Training for existing Governors continues to be developed using the Governor Handbook developed in January 2013 which contains key essential reading for the Governor to undertake. This handbook has continued to be developed along with day seminars from institutions like OFSTED. Access to e-learning is also being investigated.



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Organisational Structure The Governing Body of Buckinghamshire UTC delegates the day-to-day running of the UTC to the Principal and then through the Principal to the Vice Principal and Business Services Director, in the case of the latter person only for business, financial and administrative matters.

The Principal is the Accounting Officer.

The Governing body acts as the critical friend of the Principal and senior management team, and provides support and challenge. Pete Redfern, Chief Executive of Taylor Wimpey and a member of the Trust is mentor to the Principal.

Governors have a range of duties and powers and a general responsibility for the conduct of the UTC with a view to promoting high standards of educational achievement. Its responsibilities include but are not limited to:

providing a strategic view of the UTC by establishing a vision and setting the purpose and aims of the school;

ensuring the quality of educational provision;

setting targets for pupil achievement;

challenging and monitoring the performance of the academy;

making sure the curriculum is balanced and broadly based;

ensuring good financial health and probity;

appointing staff including the Principal;

reviewing staff performance and pay.

In fulfilling these responsibilities an effective governing body will:

help the UTC to set high standards by planning for its future and setting targets for improvement;

keep the pressure up on school improvement;

be a critical friend to the UTC, offering support and advice;

help the UTC respond to the needs of parents and the community;

make the UTC accountable to the public for what it does;

work with the UTC on planning, developing policies and keeping these under review;

exercise its responsibilities and powers in partnership with the Principal and staff;

not intervene in the day-to-day management of the UTC unless there are weaknesses, when it then has a duty to take action.

Connected Organisations The UTC’s sponsors are Taylor Wimpey, Cisco, Esri UK and McAfee provide the main employer partner support and Buckinghamshire New University (BNU) and Aylesbury College form the academic sponsorship. The UTC participates in the joint company Buckinghamshire Education, Skills and Training (BEST) and is an active member of the Federation between Aylesbury College and BNU. The Baker Dearing Trust is the overarching organisation that looks after all UTCs and Bucks UTC plays an active role in this organisation. In addition there are around 20 other employers that are involved with the UTC by providing work placements, apprenticeships, resources and time.



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Objectives and Activities Mission and Vision Bucks UTC is one of a small number of newly formed schools, known as University Technical Colleges providing an exciting new opportunity for young people to become “work ready”. All UTCs have specific specialisms that sit alongside the main curriculum, Bucks UTC’s special interests are IT and Construction and we focus on these in a specialist environment. It will provide the chance to learn and succeed within a specially designed building supported by expert staff and utilising the latest technologies in both these areas. The vision is that our young people will become highly skilled employees of the future through integration of business with education in an innovative, dynamic, employment led environment. Our mission is to:

Develop professional and motivated students and staff who will proactively represent the values and ethos of Buckinghamshire UTC;

Enable our students to achieve their full potential and be successful in life, learning and their future careers; and

Build productive relationships in the IT and Construction industries to create a relevant and integrated learning experience.

Our values are:

Exceeding expectations;

Can do attitude;

Mutual respect in all that we do;

Integrity, honesty and openness;

Valuing difference;

Goal driven one team approach.

Objectives and Activities

To create work-ready, employable young people who can progress into employment, apprenticeships or university whilst still providing a strong core curriculum.

Give students an outstanding experience and help them achieve their full potential and goals.

The seamless integration of business and education, students and businesses working together nationally and globally.

The creation of the desire to be part of the UTC community and to play an active role in the success of technical education.

Being part of a sustainable, first class working environment which services the needs of young people and employers.

To recruit, retain and develop motivated, industry focused and dynamic teachers with professional registration who inspire students to achieve their full potential.

Public Benefit The governors confirm that they have complied with their duties under section 4 of the charities Act 2006. They have considered the public benefit guidance published by the Charities Commission and believe that they followed its guidance in this area in a far as they were able given that this period covers the lead in project to establish a brand new school. The Governors’ report cannot therefore give a description of the activities undertaken by the UTC during the period in furtherance of its charitable purposes.



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STRATEGIC REPORT Achievements, Expectations and Performance Achievements

Official Opening by HRH Duke of York.

Good student intake to Year 10 and 12 year groups.

Construction students fitted a new kitchen in Amersham memorial gardens.

Students made 320 memorial crosses for WW1 field of remembrance.

Threefold increase in our links and working partnerships.

Two paid employment placements with Taylor Wimpey.

Two regular work placements at Esri UK.

Four work experience placements with BAM Construct.

100% exam achievement for new externally set construction qualification.

Students have completed five community projects for the local area.

Employer engagement breakfast which was very successful in terms of offers and engaging new employers.

Site visits to many unique construction sites, particularly St Anthony’s College Oxford (Architect - Zaha Habib).

Year 11 Computing students attended University College London (UCL), where they had the unique opportunity of being taught by both the Dean of Faculty and Head of Department, in programming techniques for the Enduino board, which has been the subject of research at UCL. As a result of this day, UCL agreed to donate 15 Enduino boards to Bucks UTC for our students to further develop their skills.

Working with St Mary at the Quay in Ipswich on a restoration project.

Delivered a performance to members of the public to commemorate World War I.

Award 20 sponsored prizes in the first Annual Awards Ceremony.

Hosted a teaching delegation from Oman for three days.

Various student workshops delivered by Cisco, Esri UK, McAfee and Taylor Wimpey.

Expectations 2014 - 15

Return visits to monitor progress at the various construction sites previously visited.

Increase work opportunities for all students.

Engaging with local community to carry out work on a voluntary basis.

A year long programme of lectures and projects from various employers.

Develop a range of items that can be sold to the general public.

Successful achievement for our first cohort of students on their construction qualification.

We have secured enough work experience placements for every single Year 13 Computing student, providing very exciting opportunities. In addition, one Year 11 student was selected, from a highly competitive selection process, for a work experience placement at Cisco in Reading.

For the next academic year, we plan to develop programming skills in Robotics and to compete nationally.

We also plan to develop further our Cisco provision, providing opportunities for all our sixth form students, in addition to commercial provision.

Increase member companies to further increase work placement opportunities.

Key targets have been set for the year 10 and year 11 (14-16) and for the year 12 and year 13 (16-18) for the opening year and these are detailed in the Colleges strategic plan 2013-2017.

A new Gym is to be opened September, 2014.



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KPIs

A successful OFSTED inspection.

Meeting our expectations in pupil achievements and outcomes.

An identifiable growth trend in student numbers facilitating financial stability.

Increased “employer” participation. Going Concern After making appropriate enquiries, the governing body has a reasonable expectation that the academy trust has adequate resources to continue in operational existence for the foreseeable future. For this reason it continues to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern can be found in the Statement of Accounting Policies. Financial Review During the period the UTC has benefited from funding from the Education Funding Agency (EFA) and its Sponsors. The EFA provided monies for start-up; project management and IT provision whilst Sponsors meet other specific costs and covered any shortfalls. The College has agreed a business plan with the EFA, which details the projected finances and student numbers over the next 4 years. Student numbers and commercial income will remain a key objective whist the College becomes established and reaches its maximum capacity of 600 students. Financial and Risk Management Objectives and Policies The UTC has produced a risk policy and risks are regularly reviewed at senior leadership and at governors meetings. A Financial Handbook has been developed. The UTC employed the services through a service level agreement with Aylesbury College to provide largely book keeping, HR and IT services during 2013-14 whilst the UTC became in a position to recruit its own staff – this was completed during August, 2014 for most aspects. The use of a “link” for IT remains and is under review 2014-15. Reserves Policy This is the first year of operation and so the Governors will keep the level of reserves under review. In the medium term the UTC wishes to build up reserves (excluding restricted fixed asset reserves) to a level where resources will cover long term cyclical needs of renewals and any unforeseen contingencies. At 31 August 2014, the UTC had £nil (2013 - £nil) unrestricted free reserves, £(125,000) (2013 - £nil) restricted general funds and £9,940,000 (2013 - £nil) restricted fixed asset funds.”

Principal Risks and Uncertainties

Financial Viability Full cohort of students are not recruited for 2014/2015 intake in Years 10 and 12 and then successive years to at least reach a workable total. Attracting students at Year 10 as students don't usually move school at 14. Long term sustainability of Bucks UTC depends on us reaching a financially balanced cohort of students by 2016-17 Bucks UTC’s unique ethos and values aimed at preparing students to be “work ready” are important aspects that need to be wider known to distinguish us from competition and to fully integrate our product with all stakeholders. Whilst the UTC is not allowed to be selective, clearly students do need to have a keen interest in our primary specialisms of construction and IT. ICT systems Continued investment to provide high quality IT is essential to the smooth running of the UTC and the curriculum. Failure to maintain standards and innovate will compromise quality and service.



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Value for Money SLAs between Bucks UTC and suppliers working efficiently, whilst financially prudent. Safeguarding Essential to have robust policies and procedures to safeguard the BUTC students and staff. Investment Policy

When there are sufficient funds at short or no notice to meet foreseeable requirements then the College would look at investing the excess in suitable funds using a financial expert. Plans for Future Growth

Successful OFSTED inspections.

Optimum capacity of students reached.

Successful sixth form established.

The Apprenticeship scheme expanded.

Commercial offer expanded.

Continued financial sponsorship. Auditors Baker Tilly UK Audit LLP has indicated its willingness to continue in office. Statement as to disclosure of information to auditors The Trustees have confirmed that, as far as they are aware, there is no relevant audit information of which the auditors are unaware. Each of the Trustees have confirmed that they have taken all the steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor. Approved by order of the directors and trustees on 18th December 2014 and signed on their behalf by: Dr Ruth Farwell Chair



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Governance Statement Scope of Responsibility As trustees, we acknowledge we have overall responsibility for ensuring that Buckinghamshire University Technical College has an effective and appropriate system of control, financial and otherwise. However such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives, and can provide only reasonable and not absolute assurance against material misstatement or loss. The board of trustees has delegated the day-to-day responsibility to the Principal, as Accounting Officer, for ensuring financial controls conform with the requirements of both propriety and good financial management and in accordance with the requirements and responsibilities assigned to it in the funding agreement between Buckinghamshire University Technical College and the Secretary of State for Education. They are also responsible for reporting to the governing body any material weaknesses or breakdowns in internal control. Governance The information on governance included here supplements that described in the governors’ Report and in the Statement of Trustees’ responsibilities. The governing body has formally met 7 times during the period. Attendance during the period at meetings of the governing body were as follows: Governor Meetings attended Out of a possible Dr Michelle Selinger - Chair (b) (c – chair) Mrs Simin Alaee Mr Mike Appleyard (c) Mr Russ Brittain Mrs Kathryn Baddeley (a) Mr Paul Churchouse – Vice Chair Dr Timothy Coole Mr Baljit Dhillon (a – chair) Dr Ruth Farwell (b) (c) Ms Beverley Flanagan – Principal & Accounting Officer Mr Andy Keegan (a) Ms Susan Leddington Mrs Amanda Lyons Mrs Karen Mitchell (b – chair) Mrs Pauline Odulinski (b) Mr Alan Sherwell (b) (c) Mr Eric Sisi Ms Jo Whistler (a)

6 4 5 5 1 5 6 6 6 7 4 0 4 6 6 7 5 3

7 5 7 6 1 6 7 7 7 7 7 2 5 7 7 7 7 3

Christine Whatford, a representative of the Baker Dearing Trust also attended a number of the Governing Body meetings throughout the period. Audit (a), Search (b) and Remuneration (c) committees to the Governing Body were formed as three separate committees during the period. The membership of each committee is denoted using a-c against their name above. The Governing Body were challenged during this period with a number of key issues including:

Student Recruitment and Marketing Strategy;

Setting up Governance arrangements and Strategic Plan 2013-17;

Establishing service level agreements with Aylesbury College of the provision of support services;

Curriculum aspects and Ofsted pre-registration requirements;

Governors training and development; and



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Adapting staff to work in a UTC environment.

The Purpose of the System of Internal Control The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk of failure to achieve policies, aims and objectives; it can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an on-going process designed to identify and prioritise the risks to the achievement of academy trust policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically. The system of internal control has been in place in Buckinghamshire UTC Academy for the year ended 31 August 2014 and up to the date of approval of the annual report and financial statements. Capacity to Handle Risk The governing body has reviewed the key risks to which the academy trust is exposed together with the operating, financial and compliance controls that have been implemented to mitigate those risks. The governing body is of the view that there is a formal on-going process for identifying, evaluating and managing the academy trust’s significant risks that has been in place for the year ending 31 August 2014 and up to the date of approval of the annual report and financial statements. This process is regularly reviewed by the governing body The Risk and Control Framework The academy trust’s system of internal financial control is based on a framework of regular management information and administrative procedures including the segregation of duties and a system of delegation and accountability. In particular, it includes:

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

regular reviews by the Board 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. During this whole financial year the governing body have relied on the services of Aylesbury College through a Service Level Agreement to physical administer and also advise the governing body regarding Finance, HR, Payroll, Estates and IT matters. Governance Reviews The governing body has considered the need for a specific internal audit function and has decided not to appoint an internal auditor. But will instead rely on the work done by the Business Services Director and an Audit Committee – both appointed during the financial year. On a termly basis from September, 2014 the business services director will report to the governing body on the operation of the systems of control and on the discharge of the governing body’s financial responsibilities. The Trustees appointed Steve Dewhurst of BNU as responsible officer (RO) for the year ending 31

st

August, 2014. The RO’s role includes giving advice on financial matters and performing a range of checks on the academy financial systems. During the year the RO reported to the audit committee on key financial data processes. No material control issues arose and the RO has delivered their schedule of work as planned.


TRUSTEES’ REPORT (continued)


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Review of Effectiveness As accounting officer, the Principal has responsibility for reviewing the effectiveness of the system of internal control. During the year in question and through more recent actions, the review has been informed by:

the work of the external auditor;

the financial management and governance self-assessment process;

the appointment August, 2014 of a UTC Business Services Director;

the work of the senior managers within the academy trust who have responsibility for the development and maintenance of the internal control framework.

The accounting officer has been advised of the implications of the result of their review of the system of internal control and a plan to address weaknesses and ensure continuous improvement of the system is in place. Approved by order of the members of the governing body on 18

th December 2014 and signed on its

behalf by: Dr Ruth Farwell Beverley Flanagan Chair of Governors Accounting officer


STATEMENT ON REGULARITY, PROPRIETY AND COMPLIANCE


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As Accounting Officer of Buckinghamshire University Technical College Academy, I have considered my responsibility to notify the academy trust governing body and the Education Funding Agency of material irregularity, impropriety and non-compliance with EFA terms and conditions of funding, under the funding agreement in place between the academy trust and the Secretary of State. As part of my consideration, I have had due regard to the requirements of the Academies Financial Handbook. I confirm that I and the academy trust governing body are able to identify any material irregular or improper use of funds by the academy trust, or material non-compliance with the terms and conditions of funding under the academy trust’s funding agreement and the Academies Financial Handbook. I confirm that no instances of material irregularity, impropriety or funding non-compliance have been discovered to date. If any instances are identified after the date of this statement, these will be notified to the governors and EFA. Beverley Flanagan Accounting officer 18

th December, 2014


STATEMENT OF TRUSTEES’ RESPONSIBILITIES


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The governors (who act as trustees for charitable activities of Buckinghamshire UTC Limited and are also the directors of the Charitable Company for the purposes of company law) are responsible for preparing the governors’ report and the financial statements in accordance with the Annual Accounts Requirements issued by the Education Funding Agency, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations. Company law requires the governors to prepare financial statements for each financial year. Under company law, the governors must not approve the financial statements unless they are satisfied that they give a true and fair view of the statement of affairs of the Charitable company and of its incoming resources and application of resources, including its income and expenditure for that period. In preparing these financial statements, the governors are required to:

select suitable accounting policies and then apply them consistently;

observe the methods and principles in the Charities SORP;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charitable Company will continue in business.

The governors are responsible for keeping adequate accounting records that are sufficient to show and explain the Charitable Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Charitable Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The governors are responsible for ensuring that in its conduct and operation, the Charitable Company applies financial and other controls, which conform with the requirements of both propriety and of good financial management. They are also responsible for ensuring grants received from the EFA/DfE have been applied for the purposes intended. The governors are responsible for the maintenance and integrity of the corporate and financial information included on the Charitable Company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Approved by order of the members of the governing body on 18th December 2014 signed on its behalf by: Dr Ruth Farwell Chair

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF BUCKINHAMSHIRE UTC


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We have audited the financial statements of Buckinghamshire UTC for the year ended 31 August 2014 on pages 17 to 35. The financial reporting framework that has been applied in their preparation is applicable law, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), and the Academies Accounts Direction 2013 to 2014 issued by the Education Funding Agency. This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of governors and auditor

As explained more fully in the Statement of Trustees’ Responsibilities set out on page 14 the governors (who act as trustees for the charitable activities of the charitable company, and are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.

Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.

Scope of the audit of the financial statements

A description of the scope of an audit of financial statements is provided on the Financial Reporting Council’s website at http://www.frc.org.uk/auditscopeukprivate

Opinion on financial statements In our opinion the financial statements:

- give a true and fair view of the state of the charitable company’s affairs as at 31 August 2014 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

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

- have been prepared in accordance with the Companies Act 2006; and

- have been prepared in accordance with the Academies Accounts Direction 2013 to 2014 issued by the Education Funding Agency.

Opinion on other requirement of the Companies Act 2006 In our opinion the information given in the Governors’ Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

http://www.frc.org.uk/auditscopeukprivate

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF BUCKINHAMSHIRE UTC


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Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

- the charity has not kept adequate accounting records, 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 governors’ remuneration specified by law are not made; or

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

Christopher Mantel (Senior Statutory Auditor) For and on behalf of BAKER TILLY UK AUDIT LLP, Statutory Auditor Chartered Accountants Highfield Court Tollgate Chandlers Ford Eastleigh Hampshire SO53 3TY Date


STATEMENT OF FINANCIAL ACTIVITIES (including Income and Expenditure Account and Statement of Recognised

gains and losses) FOR THE YEAR ENDED 31 AUGUST 2014

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All of the academy's activities derive from continuing operations during the above two financial periods. This is the first period of operation of the UTC and as a result these financial statements do not include comparatives. A Statement of Total Recognised Gains and Losses is not required as all gains and losses are included in the Statement of Financial Activities.

Restricted

Restricted Fixed

Unrestricted General Asset

Notes Funds Funds Funds 2014 2013

£000 £000 £000 £000 £000

Incoming Resources

Incoming resources from generated funds:

Voluntary Income 3 2 178 29 209 164

Activities for generating funds 4 35 - - 35 -

Investment Income 5 - 1 - 1 -

Incoming resources from charitable activities:

Funding for the academy's trust's educational operations 6 - 900 10,029 10,929 434

Total Incoming Resources 37 1,079 10,058 11,174 598

Resources Expended

Cost of generating funds:

Costs of generating voluntary income - - - - -

Fundraising trading 33 - - 33 -

Charitable activities:

Academy trust educational operations 8 4 1,059 343 1,406 518

Governance costs 9 - 30 - 30 80

Total Resources Expended 7 37 1,089 343 1,469 598

- (10) 9,715 9,705 -

Gross transfers between funds 14 - - - - -

Net income/(expenditure) for the year - (10) 9,715 9,705 -

Acturial (losses) gains on defined 22 - (1) - (1) -

benefit pension schemes

Net movement in funds - (11) 9,715 9,704

Reconciliation of funds

Total funds brought forward at 1 September 2013 - - - - -

Total funds carried forward at 31 August 2014 - (11) 9,715 9,704 -

Net incoming/(outgoing) resources before transfers

Other recognised gains and losses


BALANCE SHEET AS AT 31 AUGUST 2014

18

The financial statements on pages 17 to 35 were approved by the governors and authorised for issue on 18

th December 2014 and are signed on their behalf by:

Dr Ruth Farwell Chair

Notes 2014 2013

£000 £000

Fixed assets

Tangible assets 11 9,715 -

Total fixed assets 9,715 -

Current assets

Debtors 12 152 74

Cash at bank and in hand 116 167

268 241

Liabilities

Less: Creditors - amounts falling due within one year 13 (263) (241)

Net current assets 5 -

Total assets less current liabilities 9,720 -

Less: Creditors - amounts falling due after more than one year - -

Less: Provisions for liabilities - -

Net assets excluding pension liability 9,720 -

Net pension liability 22 (16) -

Net Assets including pension liability 9,704 -

Funds of the academy trust:

Restricted funds

Fixed asset fund 14 9,715 -

General fund 14 5 -

Pension Reserve 22 (16) -

Total restricted funds 9,704 -

Unrestricted income funds

General fund 14 - -

Total unrestricted funds - -

Total funds 9,704 -


CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2014

19

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

Notes 2014 2013

£000 £000

Net cash (outflow)/inflow from operating activities 17 (51) 167

Returns on investments and servicing of finance 18 - -

Capital expenditure 19 - -

(Decrease)/Increase in cash in the period 20 (51) 167

Reconciliation of net cash flow to movement in net funds

Net funds as 1 September 167 -

Net funds at 31 August 116 167


NOTES TO THE FINANCIAL STATEMENTS


20

1. Statement of Accounting Policies Basis of Preparation The financial statements have been prepared under the historical cost convention in accordance with applicable United Kingdom Accounting Standards, the Charity Commission ‘Statement of Recommended Practice: Accounting and Reporting by Charities’ (‘SORP 2005’), the Academies Accounts Direction issued by the Education Funding Agency and the Companies Act 2006. The Statement of Financial Activities as set out on page 17 identifies the identical information as that of the Income and Expenditure Statement. As such, no separate Income and Expenditure Statement has been prepared. A summary of the principal accounting policies, which have been applied consistently, except where noted, is set out below. Going concern The governors assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the trust to continue as a going concern. The governors make this assessment each year in respect of a period of one year from the date of approval of the financial statements. After making appropriate enquiries, the governors have a reasonable expectation that the UTC has adequate resources to continue in operational existence for the foreseeable future. For this reason it continues to adopt the going concern basis in preparing the financial statements. Incoming resources or assets All incoming resources are recognised when the trust has entitlement to the funds, certainty of receipt and the amount can be measured with sufficient reliability.

Grants receivable Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the balance sheet. Where income is received in advance of entitlement of receipt its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Sponsorship income Sponsorship income provided to the UTC trust which amounts to a donation is recognised in the Statement of Financial Activities in the period in which it is receivable, where there is certainty of receipt.

Donations Donations are recognised on a receivable basis where there is certainty of receipt and the amount can be reliably measured. The UTC does not have any permanent endowment.

Resources expended All expenditure is recognised in the period in which a liability is incurred and has been classified under headings that aggregate all costs related to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

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

Charitable activities (direct and support costs) These are costs incurred on the trust’s educational operations.




21

1. Statement of Accounting Policies (continued)

Governance costs These include the costs attributable to the trust’s compliance with constitutional and statutory requirements, including audit, strategic management and governor’s meetings and reimbursed expenses.

All resources expended are exclusive of VAT. Tangible Fixed Assets

Assets costing £1,000 or more are capitalised as tangible fixed assets and are carried at cost, net of depreciation and any provision for impairment. Where tangible fixed assets have been acquired with the aid of specific grants, either from the government or from the private sector, they are included in the Balance Sheet at cost and depreciated over their useful economic life. The related grants are credited to restricted fixed asset fund in the Statement of Financial Activities and carried forward in the Balance Sheet. Depreciation on such assets is charged to the restricted assets fund in the Statement of Financial Activities so as to reduce the fund over the useful economic life of the asset on a basis consistent with the academy trust’s depreciation policy. 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 the freehold land, at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life as follows:

Buildings 50 years

Equipment 4 years

Motor Vehicles 4 years Assets in the course of construction are included at cost. Depreciation on these assets is not charged until they are brought into use. Taxation The academy trust is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the trust is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. Pensions Benefits Retirement benefits to employees of the academy trust are provided by the Teachers’ Pension Scheme (‘TPS’), the Local Government Pension Scheme (‘LGPS’) and a defined contribution pension scheme. These first two are defined benefit schemes, are contracted out of the State Earnings-Related Pension Scheme (‘SERPS’), and the assets are held separately from those of the trust. The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees’ working lives with the trust in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the government actuary on the basis of quinquennial valuations using a prospective benefit method.




22

1. Statement of Accounting Policies (continued) Pensions Benefits (continued) As stated in Note 18, the TPS is a multi-employer scheme and the trust is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. The TPS is therefore treated as a defined contribution scheme and the contributions recognised as they are paid each year. The LGPS is a funded scheme and the assets are held separately from those of the trust in separate trustee administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent term and currency to the liabilities. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The amounts charged to operating surplus are the current service costs and gains and losses on settlements and curtailments. They are included as part of staff costs. Past service costs are recognised immediately in the Statement of Financial Activities if the benefits have vested. If the benefits have not vested immediately, the costs are recognised over the period until vesting occurs. The expected return on assets and the interest cost are shown as a net finance amount of other finance costs or credits adjacent to interest. Actuarial gains and losses are recognised immediately in other gains and losses. Fund Accounting Unrestricted income funds represent those resources which may be used towards meeting any of the charitable objects of the trust at the discretion of the trustees. Restricted fixed asset funds are resources which are to be applied to specific capital purposes imposed by the Education Funding Agency where the asset acquired or created is held for a specific purpose. Restricted general funds comprise all other restricted funds received and include grants from the Education Funding Agency or the Department for Education. 2. General Annual Grant (GAG) Under the funding agreement with the Secretary of State, the academy trust was not subject to any limits at 31 August 2014 on the amount of GAG that could be carried forward.

Unrestricted Restricted Total Total

Funds Funds 2014 2013

£000 £000 £000 £000

Private sponsorship 2 16 18 164

Other capital donations - 29 29 -

Other non capital donations - 162 162 -

2 207 209 164

4. Activities For Generating Funds



£000 £000 £000 £000

Hire of facilities 3 - 3 -

Catering income 3 - 3 -

Tuition fees 7 - 7 -

Transport fees 14 - 14 -

Other income 8 - 8 -

35 - 35 -




23

5. Investment Income



£000 £000 £000 £000

Pension finance income - 1 1 -

Short term deposits - - - -

- 1 1 -

6. Funding for the Academy Trust's Educational Operations



£000 £000 £000 £000

DfE/EFA revenue grants

General Annual Grant (GAG) (note 2) - 572 572 -

Start Up Grants - 293 293 150

Capital Grants - 9,954 9,954 -

Other DfE/EFA grants - 35 35 284

- 10,854 10,854 434

Other Government grants

Local authority capital grants - 75 75 -

Special educational projects - - - -

- 75 75 -

- 10,929 10,929 434

7. Resources Expended

Staff Total Total

Costs Premises Other 2014 2013

£000 £000 £000 £000 £000

Costs of generating voluntary income - - - - -

Costs of activities for generating funds - - 33 33 -

Academy's educational operations: - - - - -

Direct Costs 515 - 42 557 172

Allocated support costs 283 335 231 849 346

798 335 306 1,439 518

Governance costs including allocated support costs - - 30 30 80

798 335 336 1,469 598

Non Pay Expenditure




24

8. Charitable Activities

Total Total

2014 2013

£000 £000

Direct Costs - educational operations

Teaching and educational support staff costs 515 168

Depreciation 3 -

Technology costs 13 -

Educational supplies 16 -

Examination fees 11 -

Staff development - -

Educational consultancy - 4

Other direct costs - -

557 172

Support costs - educational operations

Support staff costs 283 21

Depreciation 340 -

Technology costs - -

Recruitment and support 7 5

Maintenance of premises and equipment 29 -

Cleaning 33 -

Rent and rates 26 -

Energy costs 40 -

Insurance 14 -

Security and transport - -

Catering 16 -

Marketing costs 34 -

Bank interest and charges 1 -

Other support costs 28 320

849 346

Total direct and support costs 1 407 518

9. Governance Costs Total Total

2014 2013

£000 £000

Legal and professional fees 18 52

Auditors renumeration - -

Audit of financial statements 9 5

Other audit costs 3 -

Support staff costs - 23

Trustees' reimbursed expenses - -

30 80




25

Ten of the above employees participated in the Teachers’ Pension Scheme. During the period ended 31 August 2014, employer’s pension contributions for these staff amounted to £46,450. The other employees participated in the Local Government Pension Scheme, pension contributions amounted to £10,975.

10. Staff

Total Total

2014 2013

£000 £000

a. Staff costs

Staff costs during the period were:

Wages and salaries 504 152

Social security costs 40 15

Pension costs (including FRS 17 adjustment of £16k) 74 22

618 189

Supply staff costs 180 -

Staff restructuring costs - -

798 189

b. Staff numbers

2014 2013

FTE FTE

Charitable Activities

Teachers 8 -

Administration and support 9 1

Management 2 2

19 3

The average number of persons employed by the academy during the year expressed as full time

equivalents was as follows:

c. Higher paid staff

The number of employees whose emoluments exceeded £60,000 was:

2014 2013

No. No.

£60,001 - £70,000 1 -

£70,001 - £80,000 - -

£80,001 - £90,000 - -

£90,001 - £100,000 1 1

2 1




26

Governors’ Remuneration and Expenses The principal and staff governors only receive remuneration in respect of services they provide undertaking the roles of principal and staff, and not in respect of their services as governors. Other governors did not receive any payments, other than expenses of £63 (2013: nil) during the period, from the UCT in respect of their role as governors. The value of governors’ remuneration was as follows: B Flanagan, the Principal, received remuneration of £93,500 in 2014 (2013: £93,000) and is accruing retirement benefits under the Teachers’ Pension Scheme. The contributions paid in the year amounted to £ 11,985 (2013: £nil) S. Alaee (staff trustee) received remuneration of £32,493 (2013: nil) and is accruing retirement benefits under the Teachers’ Pension Scheme. The contributions paid in the year amounted to £4,584 (2013: nil) 2 (2013: 1) governors are accruing retirement benefits under the defined benefit pension schemes. Other related party transactions involving the trustees are set out in note 23. Governors’ and Officers’ Insurance During this period the UCT did not take out any separate insurance for the Governors. Governors’ and Officers were covered under insurance held by Aylesbury College




27

Additions to long leasehold land and buildings relate to the taking up of lease on the UTC’s building from Aylesbury Vale District Council. The lease term is 125 years. Additions to furniture, fittings and equipment are in respect IT equipment to the value of £588,194 funded by the EFA, and other teaching equipment of £110,018 funded by Buckinghamshire County Council. Additions to motor vehicles relates to a minibus funded by Taylor Wimpey.

11. Tangible Fixed Assets

Long

Leasehold

Land and

Building

Fixtures,

fittings &

equipment

Motor

vehicles Total

£000 £000 £000 £000

Cost or Valuation

At 1 September 2013 - - - -

Additions 9,364 669 25 10,058

Disposals - - - -

At 31 August 2014 9,364 669 25 10,058

Depreciation

At 1 September 2013 - - - -

Charge for year 187 151 5 343

Disposals - - - -

At 31 August 2014 187 151 5 343

Net book value at 31 August 2014 9,177 518 20 9,715

Net book value at 31 August 2013 - - - -

2014 2013

£000 £000

Trade debtors 9 -

VAT Recoverable 10 -

Other debtors 133 72

Prepayments and accrued income - 2

Total 152 74

12. Debtors




28

Deferred income relates to sponsorship income in respect of the year ended 31 August 2015.

2014 2013

£000 £000

Trade creditors 1 -

Taxation and social security - -

Other creditors - 124

Accruals and deferred income 76 117

Amounts owed to EFA 186 -

Total 263 241

2014

£000

Deferred income at 1 September 2013 117

Resources deferred in the year -

Amounts released from previous years (109)

Deferred income at 31 August 2014 8

13. Creditors: Amounts Falling Due Within One Year

Deferred Income




29

The specific purposes for which the funds are to be applied are as follows: Lead in Grant (under start up grants) was claimed over the period and for agreed expenditure Project Management Grant (under Other Grants) was claimed over the period and for agreed expenditure. An ICT Grant of £588,000 (under EFA capital) was claimed during the period for agreed IT equipment and installation.

14. Funds

Balance at Gains, Balance at

1 September Incoming Resources Losses and 31 August

2013 Resources Expended Transfers 2014

£000 £000 £000 £000 £000

Restricted general funds

Start Up Grant - 293 (293) - -

General Annual Grant (GAG) - 572 (683) 111 -

Other Dfe/EFA grants - 35 ( 35) - -

Pension Reserve - 1 (16) (1) (16)

Other restricted funds - 178 (62) (111) 5

- 1,079 (1,089) (1) (11)

Restricted fixed asset funds

DfE/EFA capital grants - 9,954 334 - 9,620

Other local authority capital grants - 75 3 - 72

Private sector capital sponsorship - 29 6 - 23

- 10,058 343 - 9,715

Total Restricted Funds - 11,137 (746) (1) 9,704

Unrestricted Funds

Unrestricted Funds - 37 37 - -

Total Unrestricted Funds - 37 37 - -

Total Funds - 11,174 (709) (1) 9,704

15. Analysis of Net Assets between Funds

Fund balances at 31 August 2014 are represented by: Restricted

Restricted Fixed

Unrestricted General Asset Total

Funds Funds Funds Funds

£000 £000 £000 £000

Tangible fixed assets - - 9,715 9,715

Current assets 9 259 - 268

Current liabilities (9) (254) - (263)

Pension scheme liability - (16) - (16)

Total net assets - (11) 9,715 9,704

16. Capital Commitments

2014 2013

£000 £000

Contracted for, but not provided in the financial statements - -




30

21. Contingent Liabilities There were no contingent liabilities. 22. Members’ Liabilities Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up while he/she is a member, or within one year after he/she ceases to be a member, such amount as may be required, not exceeding £10 for the debts and liabilities contracted before he/she ceases to be a member.

2014 2013

£000 £000

9,705 135

Depreciation (Note 11) 343 -

Capital grants from DfE and other capital income (10,058) (135)

Interest receivable (Note 5) - -

FRS 17 Pension cost less contributions payable (Note 23) 16 -

FRS 17 Pension finance income (Note 23) (1) -

Decrease / (Increase) in debtors (78) (74)

(Decrease) / increase in creditors 21 241

Net cash inflow from operating activities (51) 167

2014 2013

18. Returns on Investments and Servicing of Finance £000 £000

Interest received - -

- -

2014 2013

19. Capital Expenditure and Financial Investment £000 £000

Purchase of tangible fixed assets (10,058) (135)

Capital grants from DfE/EFA 9,954 135

Capital funding received from sponsors and others 104 -

- -

20. Analysis of Changes in Net Funds

At 1

September

2013 Cashflows

At 31

August

2014

£000 £000 £000

Cash in hand, and at bank 167 (51) 116

167 (51) 116

17. Reconciliation of Net Income to Net Cash Inflow from Operating

Activities

Net cash inflow from returns on investment and servicing of finance

Net cash outflow from capital expenditure and financial investment

Surplus on continuing operations after depreciation of assets at valuation




31

23. Pension and Similar Obligations

The academy’s employees belong to two principal pension schemes: the Teachers’ Pension Scheme England and Wales (TPS) for academic and related staff; and the Local Government Pension Scheme (LGPS) for non-teaching staff which is managed by Buckinghamshire County Council. Both are defined-benefit schemes.

The pension costs are assessed in accordance with the advice of independent qualified actuaries. The latest actuarial valuation of the TPS was 31 March 2004 and of the LGPS on transfer of single member to the college on 31 March 2013.

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

Teachers’ Pension Scheme

The Teachers' Pensions Scheme (“TPS”) is a statutory, contributory, defined benefit scheme. The regulations under which the TPS operates are the Teachers' Pensions Regulations 2010. Retirement and other pension benefits, including annual increases payable under the Pensions (Increase) Acts are, as provided for in the Superannuation Act 1972, paid out of monies provided by Parliament. Under the unfunded TPS, teachers' contributions on a 'pay as-you-go' basis, and employers' contributions, are credited to the Exchequer under arrangements governed by the above Act.

The Teachers' Pensions Regulations require an annual account, the Teachers' Pensions Budgeting and Valuation Account, to be kept of receipts and expenditure (including the cost of pensions’ increases). From 1 April 2001 to 31 March 2011, the Account has been credited with a real rate of return (in excess of price increases and currently set at 3.5%), which is equivalent to assuming that the balance in the Account is invested in notional investments that produce that real rate of return.

Valuation of the Teachers’ Pensions Scheme

Not less than every four years the Government Actuary (“GA”), using normal actuarial principles, conducts a formal actuarial review of the TPS. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. Many of these were being discussed in the context of the design for a reformed TPS, and as set out in the Proposed Final Agreement, scheme valuations had been suspended since the last valuation in 2004. The contribution rate paid into the TPS is assessed in two parts. First, a standard contribution rate (“SCR”) is determined. This is the contribution, expressed as a percentage of the salaries of teachers and lecturers in service or entering service during the period over which the contribution rate applies, which if it were paid over the entire active service of these teachers and lecturers would broadly defray the cost of benefits payable in respect of that service. Secondly, a supplementary contribution is payable if, as a result of the actuarial investigation, it is found that accumulated liabilities of the Account for benefits to past and present teachers, are not fully covered by standard contributions to be paid in future and by the notional fund built up from past contributions. The total contribution rate payable is the sum of the SCR and the supplementary contribution rate. Valuations of the TPS are now required under the Public Service Pensions Act 2013 every 4 years and are required to be carried out in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury.




32

23. Pension and Similar Obligations (continued) An actuarial valuation of the TPS in accordance with these Directions was published in June 2014 assessing the TPS as at 31 March 2012. The GA's report revealed that the total liabilities of the Scheme (pensions currently in payment and the estimated cost of future benefits) amounted to £191,500 million. The value of the notional assets (estimated future contributions together with the proceeds from the notional investments held at the valuation date) was £176,600 million. The assumed real rate of return is 3.0% in excess of prices and 2% in excess of earnings. The rate of real earnings growth is assumed to be 2.75%. The assumed nominal rate of return is 5.06%.

Employer and employee contribution rates

As from 1 January 2007, and as part of the cost-sharing agreement between employers’ and teachers’ representatives, the SCR was assessed at 19.75%, and the supplementary contribution rate was assessed to be 0.75% (to balance assets and liabilities as required by the regulations within 15 years). This resulted in a total contribution rate of 20.5%, which translated into an employee contribution rate of 6.4% and employer contribution rate of 14.1% payable. The cost-sharing agreement also introduced – effective for the first time for the 2008 valuation – a 14% cap on employer contributions payable. From 1 April 2013 to 31 March 2014, the employee contribution rate ranged between 6.4% and 11.2%, depending on a member’s Full Time Equivalent salary and for 2014/15 will range between 6.4% and 12.4%. Thereafter members will be expected to pay an average contribution rate of 9.6%. The TPS valuation for 2012 determined an employer rate of 16.4% from September 2015 and an employee cost cap of 10.9%, both to be set in regulations. The employer contribution rate will be payable during the implementation period until the next valuation as at March 2016, whereupon the employer contribution rate is expected to be reassessed and will be payable from 1 April 2019. There will be further reforms and changes to the TPS with a new 2015 scheme. The pension costs paid to TPS in the year amounted to £46,450 (2013: £nil). Under the definitions set out in Financial Standards (FRS 17) Retirement Benefits, the TPS is a multi-employer pension scheme. The Academy Trust is unable to identify its share of the underlying assets and liabilities of the scheme.

Accordingly, the Academy Trust has taken the exemption in FRS 17 and has accounted for its contributions to the scheme as if it were a defined-contribution scheme. The Academy Trust has set out above the information available on the scheme and the implications for the Academy Trust in terms of the anticipated rates. Local Government Pension Scheme The Local Government Pension Scheme (‘’the LGPS’’) is a statutory administered scheme administered in accordance with the Local Government Pension Scheme (Administration) Regulations 2008 (‘’the regulations’’). As a Scheduled Body within the Buckinghamshire County Council Pension Fund, Buckinghamshire University Technical College must pay contributions to the Fund as required by Regulation 39. The LGPS is a funded defined benefit pension scheme, with the assets held in separate trustee administered funds. The total contributions made for the year ended 31 August 2014 was £41,000, of which employers’ contributions totalled £31,000 and employees’ contributions totalled £10,000. The agreed rates for future years are 16.4% for employers and between 5 % and 7.5% for employees.




33

23. Pension and Similar Obligations (continued)

Principal Actuarial Assumptions The assumptions used for the contribution rate calculations are in line with those used to value the past service liabilities at the actuarial valuation as at 31 March 2010 and are summarised as follows:

The assets in the scheme and the expected rates of return were:

Value at

£000

Equities 6.8% 6 6.3%

Gilts 3.4% 7 3.0%

Bonds 4.0% 6 4.1%

Property 5.7% 4 5.8%

Cash 3.2% 1 0.5%

Other 6.8% 26 6.3%

Total market value of assets 50

Present value of scheme liabilities (66)

Present value of unfunded liabilities -

Related deferred tax liability -

Deficit in the scheme (16)

Long-term

rate of

return

expected

at

Long-

term rate

of return

expected

at

31 July 2014




34

The estimated value of employer contributions for the year ended 31 August 2015 is £19,000.

23. Pension and similar obligations (continued)

2014 2013

£000 £000

Employer service cost (net of employee contributions) 44 -

Past service cost - -

Curtailment and Settlements - -

Total operating charge 44 -

2014 2013

Analysis of pension finance income / (costs) £000 £000

Expected return on pension scheme assets 2 -

Interest on pension liabilities (1) -

Pension finance income / (costs) 1 -

2014 2013

£000 £000

Actual return less expected return on pension scheme assets - -

Experience gains and losses arising on the scheme liabilities - -

(1) -

Actuarial gain / (loss) recognised in STRGL (1) -

2014 2013

Movement in surplus during year £000 £000

Deficit in scheme at 1 August (3) -

Movement in year:

Current employer service charge (44) -

Employer Contributions 31

Underfunded pension payments - -

Past service costs - -

Settlements Curtailments - -

Net interest 1 -

Actuarial gain or (loss) (1) -

Deficit in scheme at 31 July (16) -

Change in financial and demographic assumptions underlying

the scheme liabilities

Amount recognised in the statement of total recognised

gains and losses (STRGL)

Analysis of the amount charged to income and

expenditure account




35

24. Related Party Transactions Owing to the nature of the college’s operations and the composition of the board of governors being drawn from local public and private sector organisations, it is inevitable that transactions will take place with organisations in which a member of the board of governors may have an interest. All transactions involving such organisations are conducted at arm’s length and in accordance with the academy’s financial regulations and normal procurement procedures. During the year costs of £145,000 were recharged from Aylesbury College, the academy trust’s sponsor, in respect of finance, estates, staff and other costs. An amount of £12,000 is payable to Aylesbury College as at 31 August 2014 and is included within accruals. Included within other non-capital donations is £155,000 receivable from Buckinghamshire New University, the academy trust’s sponsor. This amount is included within other debtors as at 31 August 2014. 25. Agency Arrangements The Academy Trust administers the disbursement of the new discretionary support for learners, 16-19 Bursary Funds, on behalf of the EFA. In the year it received £8,000 and disbursed £nil, with an amount of £8,000 repayable to the EFA at 31 August 2014, included in creditors.

INDEPENDENT REPORTING ACCOUNTANT’S ASSURANCE REPORT ON REGULARITY TO BUCKINGHAMSHIRE UTC AND THE EDUCATION FUNDING

AGENCY

36

In accordance with the terms of our engagement letter dated 22 September 2014 and further to the requirements of the Education Funding Agency (‘EFA’) as included in the Academies Accounts Direction 2013 to 2014, we have carried out an engagement to obtain limited assurance about whether the expenditure disbursed and income received by Buckinghamshire UTC during the period 1 September 2013 to 31 August 2014 have been applied to the purposes identified by Parliament and the financial transactions conform to the authorities which govern them. This report is made solely to Buckinghamshire UTC and the EFA in accordance with the terms of our engagement letter dated 22 September 2014. Our work has been undertaken so that we might state to the Buckinghamshire UTC and the EFA those matters we are required to state in a report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Buckinghamshire UTC and the EFA, for our work, for this report, or for the conclusion we have formed. Respective responsibilities of Buckinghamshire UTC’s accounting officer and the reporting accountant The accounting officer is responsible, under the requirements of Buckinghamshire UTC’s funding agreement with the Secretary of State for Education dated 1 June 2012 and the Academies Financial Handbook extant from 1 September 2013, for ensuring that expenditure disbursed and income received is applied for the purposes intended by Parliament and the financial transactions conform to the authorities which govern them. Our responsibilities for this engagement are established in the United Kingdom by our profession’s ethical guidance and are to obtain limited assurance and report in accordance with our engagement letter and the requirements of the Academies Accounts Direction 2013 to 2014. We report to you whether anything has come to our attention in carrying out our work which suggests that in all material respects, expenditure disbursed and income received during the period 1 September 2013 to 31 August 2014 have not been applied to purposes intended by Parliament or that the financial transactions do not conform to the authorities which govern them. Approach We conducted our engagement in accordance with the Academies Accounts Direction 2013 to 2014 issued by the EFA. We performed a limited assurance engagement as defined in our engagement letter. The objective of a limited assurance engagement is to perform such procedures as to obtain information and explanations in order to provide us with sufficient appropriate evidence to express a negative conclusion on regularity. A limited assurance engagement is more limited in scope than a reasonable assurance engagement and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in a reasonable assurance engagement. Accordingly, we do not express a positive opinion. Our engagement includes examination, on a test basis, of evidence relevant to the regularity and propriety of the academy trust’s income and expenditure. Our work included identification and assessment of the design and operational effectiveness of the controls, policies and procedures that have been implemented to ensure compliance with the framework of authorities including high level financial control areas and areas assessed of presenting a higher risk of impropriety. We undertook detailed testing, based on our assessment of risk of material irregularity, where such controls, policies and procedures apply to classes of transactions. This work was integrated with our audit on the financial statements to the extent evidence from the conduct of that audit supports the regularity conclusion.

INDEPENDENT REPORTING ACCOUNTANT’S ASSURANCE REPORT ON REGULARITY TO BUCKINGHAMSHIRE UTC AND THE EDUCATION FUNDING

AGENCY

37

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

BAKER TILLY UK AUDIT LLP Chartered Accountants Highfield Court Tollgate Chandlers Ford Eastleigh Hampshire SO53 3TY Date

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BUCKINGHAMSHIRE UNIVERSITY TECHNICAL COLLEGE€¦ · Buckinghamshire, South West Hertfordshire and edging on to Oxfordshire. It has an ideal student capacity of around 350 – 400,