Giles Academy · The Trustees of Giles Academy are also the directors of the Charitable Company for the purposes of company law. The Charitable Company is known as Giles Academy

Giles Academy (A company limited by guarantee)

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Giles Academy

(A Company Limited by Guarantee)

Annual Report and Financial Statements

Period ended 31 August 2015

Company Registration Number: 07352123 (England and Wales)


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Contents

Page Reference and Administrative Details 1 Trustees’ Report 2 - 7 Governance Statement 8 - 11 Statement on regularity, Propriety and Compliance 12 Statement of Trustees’ Responsibilities 13 Independent Auditors’ Report on the Financial Statements 14 - 15 Independent Auditors’ Report on Regularity 16 - 17 Statement of Financial Activities incorporating Income & Expenditure Account 18 - 19 Balance Sheet 20 - 21 Cash Flow Statement 22 Notes to the Financial Statements, incorporating: 23 - 46 Statement of Accounting Policies Other Notes to the Financial Statements


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Giles Academy

Reference and Administrative Details Trustees Mr S Robinson (Chair) Mrs S Whelbourn (Vice Chair) Mr P Bedford Mr A G Bull Mrs L Demeter Mr P Jordan Mrs S Pell Mr D Relton (appointed 1/4/15) Mrs E Scott Mr S Smith (resigned 5/11/14) Mrs R Whiteside Mr C Walls (Head Teacher and Accountable Officer) Company Secretary Mrs D Law Senior Management Team: Head Teacher Mr C Walls Deputy Head Mrs S Barnicoat

Deputy Head Mr I Widdows Senior Leader Mr A Castley Senior Leader Dr K Chrysostomou Senior Leader Mr I Diaz Senior Leader Mrs K Joel (resigned 31/12/14) Senior Leader Mr B Vidler (deceased 20/12/14) Senior Leader Mr G Wright

Principal and Registered Office Giles Academy Church End Old Leake Boston Lincolnshire PE22 9LD Company Registration Number 07352123 (England and Wales) Independent Auditor Duncan & Toplis Limited 15 Chequergate Louth Lincolnshire LN11 0LJ Bankers Lloyds Bank plc 51 Market Place Boston Lincolnshire PE21 6NQ Solicitors Stone King 13 Queen Square Bath BA1 2JH


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TRUSTEES’ REPORT

The Trustees present their annual report together with the financial statements and auditor’s reports of the charitable company for the period 1 September 2014 to 31 August 2015. The annual report serves the purposes of both a Trustees’ Report and a Directors’ Report under company law. The Trust operates as an Academy for pupils aged 11 to 18 serving South Lincolnshire including Boston and Skegness. It has a pupil capacity of 1100 and had a roll of 935 on the school census at June 2015. Structure, Governance and Management Constitution The Academy Trust is a company limited by guarantee and an exempt charity. The charitable company’s memorandum and articles of association are the primary governing documents of the Academy Trust. The Trustees of Giles Academy are also the directors of the Charitable Company for the purposes of company law. The Charitable Company is known as Giles Academy. Details of the Trustees who served during the year are included in the Reference and Administrative Details on page 1. Trustees’ 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. Trustees’ Indemnities In accordance with normal commercial practice the Academy has purchased insurance to protect Trustees, Governors and Officers from claims arising from negligent acts, errors or omissions occurring whilst on Academy business. The insurance provides cover up to a maximum value of £1,000,000. Method of Recruitment and Appointment or Election of Trustees The management of the Academy Trust is the responsibility of the Governors who are elected and co-opted under the terms set out in the Articles of Association. The Governors are Directors of the charitable company for the purposes of the Companies Act 2006 and trustees for the purposes of the charity legislation. Governors are appointed by Members. Community Governors are appointed by the Governing Body as and when vacancies occur or when individuals with the skills required are identified. Parent Governors shall be elected by parents of registered pupils in the Academy Trust, using the procedures set out in the Articles of Association. The Secretary of State retains the power to appoint additional Governors. The Local Authority may appoint the LA Governor. The term of office for any Governor is 4 years, save that this time limit shall not apply to the Headteacher. Subject to remaining eligible to be a particular type of Governor, any Governor may be reappointed or re-elected.


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Policies and Procedures Adopted for the Induction and Training of Trustees Training and induction for new Governors is given on an individual basis and includes one to one meetings with key staff and Governors, visits to the school and training sessions provided both internally and externally. Organisational Structure Giles Academy began trading on 1 September 2010 and retained the governance and management structure already in place prior to the conversion as this was deemed wholly appropriate to the Academy Trust’s objects. The management structure consists of four levels: the Governors, the Senior Leadership Team, Leadership Team, and Department Heads including support teams (Admin, SEN). The Academy committee structure consists of 3 committees: Resources committee (including finance), Students & Staffing and Achievements & Standards, which report to the full Governing Body. The key responsibilities of the Governing Body are to determine, in cooperation with the Senior Leadership Team, the strategic vision and ethos of the school, to hold the Academy to account by challenging and monitoring performance particularly regarding the achievements of students, quality of teaching, the quality of leadership and management and the behaviour of students and safety of both staff and students. The Governing Body is also responsible for ensuring financial probity and for acting as a responsible employer. At an operational level they regularly monitor the performance of the Headteacher and appoint the Headteacher as required. The Senior Leadership Team manages the Academy Trust and implements the policies laid down by the Governing Body. They report back to the Governing Body through the sub-committee and full governor meetings regularly throughout the year. The Headteacher leads the SLT and is also the Academy Trust’s Accounting Officer. Members of the SLT are responsible for developing and implementing the Academy Trust’s plans in conjunction with agreed vision, ethos and objects of the Academy and do so within an agreed budget as approved by Governors. The SLT have line management responsibilities for Head of Departments, Pastoral Teams including Progress Coordinators and Support Staff such as the Site Manager, Finance & Admin staff and Learning Support Staff. Member of the SLT are shown on page 1. Connected Organisations including Related Party Relationships Giles Academy is a stand-alone academy with no federations or sponsorship. In order to share best practices and to continue to drive raising standards Giles Academy has memberships with PiXL (Partners in Excellence), SSAT (Specialist Schools and Academies Trust), FASNA (Freedom and Autonomy for Schools National Association). In addition Giles Academy were the founder members for the Lincolnshire Academies Converters Club and the National Association of Secondary Moderns (NASM).


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Objectives and Activities Objects and Aims The governors consider the main aims of the Academy to be:

• To ensure students are able to work in a happy and safe environment whilst in the school; • To ensure students make continuous educational development; • To continue to obtain a “good with outstanding features” acclaim from Ofsted. • To continue to be awarded the Investors in People award.

In accordance with the Articles of Association the Academy Trust has adopted a Funding Agreement approved by the Secretary of State for Education. The Funding Agreement specifies, among other things the basis for admitting students to the Academy Trust, the catchment area from which the students are drawn, and that the curriculum should comply with the substance of the National Curriculum, arrangements for students with special educational needs and disabilities and arrangement for misbehaviour leading to both fixed term and permanent exclusions. Objectives, Strategies and Activities The principal object and activity of the charitable company is set out in the Articles of Association. In summary it is to advance for the public benefit, education in the United Kingdom by establishing, maintaining, carrying out, managing and developing a school offering a broad and balanced curriculum. The strategy for Giles Academy is encompassed in our ethos and values:

• All learners are welcome, regardless of age, ability, gender, ethnic origin, personal circumstances or need.

• Students are given opportunities to develop as active citizens and members of the community through varied activities, including participation in Giles Adventure and the Duke of Edinburgh Award.

• All learners feel motivated to excel because their needs are met through a policy of inclusion. Students are supported whether they are able and talented or have special educational needs.

• Parents and carers are involved with their children’s learning through home-school partnerships, parents’ meetings and discussions with tutors.

• Members of the local community are welcome and encouraged to be active participants in the life of the Academy.

• Clear, inspiring leadership by Governors and senior staff actively promote the commitment of the Academy to provide the high quality environment for life-long learning.

Public Benefit In line with the requirement for SORP and the Charity Commission, the Governors/Trustees can confirm they have had due regard to the definitions of “Public Benefit”.


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Strategic Report Achievements and Performance The Academy continues to deliver high performances both at Key Stage 4 and at Key Stage 5. Key Stage 4 results showed a decrease in the % 5 A*-C GCSEs including English and Maths from 43% in 2013 to 41% in 2014 and (provisionally) 37% in 2015. However, this is in the context of a shift nationally to far greater “rigour” within examinations and their associated pass marks. The Academy made the decision to be an early adopter in 2015 for the DfE’s new performance measure (which will be introduced for all schools in 2016), Progress 8. The gap between disadvantaged and non-disadvantaged students was considerably smaller than that for all maintained schools nationally (17% lower than national for %5A*CEM and 40.5% lower than national for Capped APS). This represents a significant achievement for the school in providing opportunities to its students, particularly those from disadvantaged backgrounds. The Sixth Form results continue to show very good outcomes both in terms of Average Points Per Student and Average Points Per Entry. This is particularly high when the starting points of the students is taken into account.

Key Financial Performance Indicators The school continues to provide excellent opportunities for its students – particularly those from disadvantaged backgrounds. This is demonstrated in the destination data for students from KS4 and KS5. The most recent Ofsted judgements about the school were Outstanding for Leadership and Management and Behaviour and Safety of Students and Good for Overall Effectiveness, Achievement of Pupils and Quality of Teaching.

Going Concern After making appropriate enquires, the Trustees have a reasonable expectation that the Academy Trust has adequate resources to continue in operational existence for the foreseeable future. For this reason it continues to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Statement of Accounting Policies. Financial Review The majority of the Academy’s income is obtained from the DfE in the form of recurrent grants. The grants received from the DfE during the year ended 31 August 2015 and the associated expenditure are shown in the statement of financial activities. During the year ended 31 August 2015, total expenditure was £6,376,602. This compares to unrestricted and restricted income of £5,853,371 (excluding non-recurrent capital funding in the fixed assets fund), to give a carry forward of £523,231 of expenditure in excess of income. At 31 August 2015, the net book value of fixed assets was £13,375,614. The assets were used exclusively for providing education and the associated support services to the students of the Academy. The Academy held fund balances at 31 August 2015 of £12,943,589 which comprise £456,719 of restricted funds; a pension reserve deficit of (£812,000); and £126,678 of unrestricted general funds.


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Reserves Policy The trustees review the reserve levels of the Academy annually, and have determined that the appropriate level of free reserves should be equivalent to 1-2 months expenditure, which equates to approximately £417,000. The reason for this is to provide sufficient working capital to cover delays between spending and receipt of grants and to provide a cushion to deal with unexpected emergencies such as urgent maintenance. The Trust's current level of free reserves (total funds less the amount held in fixed assets and restricted funds) is £126,678. Investment Policy The Academy does not hold any investments other than bank accounts1. Funds in Deficit The Academy’s non-teaching staff are entitled to membership of the Local Government Pension Scheme. The Academy’s share of the Scheme’s assets is currently assessed to be less than its liabilities in the Scheme and consequently the Academy balance sheet shows a net liability of £812,000. However, the deficit does not mean that an immediate liability for this amount crystallises. The contribution rate to reduce the liability is calculated by an independent actuary and is reported within the notes to the financial statements. Principal Risks and Uncertainties

The principal risk to the Academy is maintaining student numbers. We are aware of the competition from neighbouring sponsored Academies, but are confident that the cohort is now rising and with it future intake. Other financial risks facing the Academy and considered to be minimal due to the nature of the Academy and the fact that the financial instruments that they deal with are mainly bank balances, trade creditors and other debtors. The financial officer performs regular reviews of cash flows to monitor the risk of the Academy facing cash flow difficulties and bank reconciliations are prepared and reviewed monthly along with management accounts. The current principal risks are perceived as being external; the Trust does not have a sponsor and is reliant on the Department for Education for its funding. Definitive information regarding funding for future years is still not available making it difficult to plan ahead.

1 On 25 July 2015 the academy’s main account unfortunately became overdrawn due to early payment of

salary on-costs. There was sufficient funding available in an alternative account with Santander to cover this

transaction, but they refused to allow an electronic transfer. Therefore a cheque had to be issued to move the

money across and the delay resulted in a temporary overdraft. We informed the EFA and they have confirmed

they were satisfied with the actions taken.


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Plans for Future Periods Priority areas for 2015-2016 at to:

• Make a bid to the Capital Improvement Fund in 2015-16 for structural improvements and a new Sixth Form Centre.

• Continue to improve attendance across the school – looking at specific impact on vulnerable groups (Pupil Premium, EAL…)

• Embed “Progress 8” methodology across school • Further develop Target Setting and Tracking – improving quality of assessment and therefore

reliability of predictions • Improve performance of students in Science qualifications – we now have a short term Dept

Action Plan in place for 2015-2016 • Further develop CPD programme to focus on individual needs including professional study,

staff subject knowledge and the use of lesson study • Focus for all departments to include: improvements in the use of Questioning, use of

Assessment for Learning, strategies for teaching EAL students, improving progress of boys • Review impact of extra-curricular activities and character education (eg Giles Adventure) on

attitudes to learning and further develop the offer • Respond to examination results for 2015 – full and thorough review of “Ofsted preparedness” • Review of public profile/ marketing of the school (Y5 days, Primary Links, tours, opening

evenings, sixth form – particularly the new pathways, information on school website – to ensure compliance)

• Further develop Dept Reviews (with a focus on improvement of teaching and learning) • Ensure greater consistency in line management with aim of enhancing the role of the Middle

Leader (including use of Leadership Competencies Framework)

Funds Held as Custodian Trustee on Behalf of Others The Academy does not hold any such funds. Auditor Insofar as the Trustees are aware:

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

� the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

Trustees’ Report, incorporating a strategic report, approved by order of the Board of Trustees on 23 November 2015 and signed on its behalf by: ..................................... Mr S Robinson Chair of Trustees


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GOVERNANCE STATEMENT Scope of Responsibility As Trustees, we acknowledge we have overall responsibility for ensuring that Giles Academy 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 Trustees have delegated the day-to-day responsibility to the Head Teacher, 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 Giles Academy and the Secretary of State for Education. They are also responsible for reporting to the Trustees any material weaknesses or breakdowns in internal control. Governance The information on governance included here supplements that described in the Trustees’ Report and in the Statement of Trustees’ responsibilities. The Trustees have formally met at four full meetings and nine sub-committee meetings during the year. Attendance during the year at meetings of the Trustees were as follows: Trustee Meetings attended Out of a possible

Mr S Robinson (Chair) 10 10 Mrs S Whelbourn (Vice Chair) 11 11 Mr P Bedford 3 7 Mr G Bull 5 10 Mrs L Demeter 6 7 Mrs M Hill 2 7 Mr P Jordan 5 8 Mrs S Pell 7 7 Mr D Relton (appointed 1/4/15) 2 2 Mrs E Scott 8 10 Mr S Smith (resigned 5/11/15) 1 1 Mrs M Trevor (removed from governing body Oct15)

0 7

Mr C Walls (Headteacher and Accounting Officer)

11 13

Mrs R Whiteside 8 13 Mr R Williams 6 7

The Governors and SLT has 3 sub committees: Resources, Students & Staffing, and Achievements & Standards. Governors are appointed to committees with a view to utilising their diverse qualities and vast experience to ensure effective governance.

The Resources Committee is a sub-committee of the main Board of Trustees and meets formally three times a year. The Resources Committee’s main responsibilities are:

• To provide guidance to the Governing Body on all financial matters • To propose and approve an annual budget within the local authority constraints • To comply with the Schools Financial Value Standard (SFVS) laid down by Government


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• To ensure that appropriate financial records and accounts are maintained and to make these available for audit on an annual basis

Trustee Meetings attended Out of a possible Mr R Williams (Chair) 3 3 Mrs S Whelbourn (Vice Chair) 3 3 Mr P Bedford 2 3 Mr G Bull 2 3 Mr P Jordan 1 3 Mr C Walls (Headteacher & Accounting Officer)

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Mrs R Whiteside 3 3 Review of Value for Money As accounting officer the Head Teacher has responsibility for ensuring that the Academy Trust delivers good value in the use of public resources. The accounting officer understands that value for money refers to the educational and wider societal outcomes achieved in return for the taxpayer resources received. The accounting officer considers how the Trust’s use of its resources has provided good value for money during each academic year, and reports to the Board of Trustees where value for money can be improved, including the use of benchmarking data where available. The accounting officer for the Academy Trust has delivered improved value for money during the year by:

• Regularly reviewing the functions of the school, challenging how and why services are provided and setting targets and performance indicators for improvement

• Monitoring outcomes and compare performance with similar schools and within the school

• Consulting appropriate stakeholders before major decisions are made and

• Promoting fair competition through quotations and tenders to ensure that goods and services

are secured in the most economic, efficient and effective way We will strive to ensure that the school is using its resources effectively to meet the needs of pupils. We will submit out Best Value statement with the annual budget plan. The progress of the annual budget plan and the Best Value statement will be monitored with the Academy Development Plan in order to determine the extent of continuous improvement. The school has in place a strategy and a set of guidelines, updated annually, which will ensure that Best Value will be reviewed and demonstrated. The Purpose of the System of Internal Control The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk of failure to achieve policies, aims and objectives; it can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an ongoing process designed to identify and prioritise the risks to the achievement of Academy’s 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 Giles Academy for the year ended 31 August 2015 and up to the date of approval of the annual report and financial statements.


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Capacity to Handle Risk The Board of Trustees has reviewed the key risks to which the Academy Trust is exposed together with the operating, financial and compliance controls that have been implemented to mitigate those risks. The Board of Trustees is of the view that there is a formal on-going process for identifying, evaluating and managing the Academy Trust's significant risks that has been in place for the period 01 September 2014 to 31 August 2015 and up to the date of approval of the annual report and financial statements. This process is regularly reviewed by the Board of Trustees. The Risk and Control Framework The Academy Trust’s system of internal financial control is based on a framework of regular management information and administrative procedures including the segregation of duties and a system of delegation and accountability. In particular, it includes:

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

• regular reviews by the Finance, Audit and Premises Committee of reports which indicate financial performance against the forecasts and of major purchase plans, capital works and expenditure programmes;

• setting targets to measure financial and other performance; • clearly defined purchasing (asset purchase or capital investment) guidelines. • delegation of authority and segregation of duties; • identification and management of risks.

The Board of Trustees has considered the need for a specific internal audit function and has decided:

• not to appoint an internal auditor. However the trustees have appointed Duncan & Toplis Limited, the external auditor, to perform additional checks.

This role includes giving advice on financial matters and performing a range of checks on the Academy Trust’s financial systems. In particular the checks carried out in the current period included:

• review of governance and internal controls; • testing procurement procedures; • testing of payroll systems; and • testing of control accounts and reconciliations.

On a termly basis, the reviewer reports to the Board of Trustees on the operation of the systems of control and on the discharge of the Board of Trustees’ financial responsibilities. The schedule of additional review work has been delivered by the external auditors as planned. On 25th July 2015 the academy’s main account unfortunately became overdrawn due to early payment of salary on-costs. There was sufficient funding available in an alternative account with Santander to cover this transaction, but they refused to allow an electronic transfer. Therefore a cheque had to be issued to move the money across and the delay resulted in a temporary overdraft. The auditors advised that we would need to inform the EFA about this situation as it would be classed as borrowing. We subsequently informed the EFA and they have confirmed they were satisfied with the actions taken.


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Review of Effectiveness As Accounting Officer the Head Teacher has responsibility for reviewing the effectiveness of the system of internal control. During the year in question the review has been informed by the work of the external auditor;

The Accounting Officer has been advised of the implications of the result of their review of the system of internal control by the Resources Committee and a plan to address weaknesses and ensure continuous improvement of the system is in place. Approved by order of the members of the Board of Trustees on 23 November 2015 and signed on its behalf by: ………………………….. ………………………….. Mr S Robinson Mr C Walls Chair of Trustees Accounting Officer


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STATEMENT ON REGULARITY, PROPRIETY AND COMPLIANCE As accounting officer of ABC Academy Trust I have considered my responsibility to notify the Academy trust governing body and the Education Funding Agency of material irregularity, impropriety and non-compliance with EFA terms and conditions of funding, under the funding agreement in place between the Academy trust and the Secretary of State. As part of my consideration I have had due regard to the requirements of the Academies Financial Handbook. I confirm that I and the Academy Trust Governing Body are able to identify any material irregular or improper use of funds by the Academy trust, or material non-compliance with the terms and conditions of funding under the Academy trust’s funding agreement and the Academies Financial Handbook. I confirm that no instances of material irregularity, impropriety or funding non-compliance have been discovered to date. If any instances are identified after the date of this statement, these will be notified to the Board of Trustees and the EFA. ............................................... Mr C Walls Accounting Officer Date: 23 November 2015


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STATEMENT OF TRUSTEES’ RESPONSIBILTIES The Trustees (who act as Governors for charitable activities of Giles Academy Trust and are also the directors of the Charitable Company for the purposes of company law) are responsible for preparing the Trustees’ report and the financial statements in accordance with the Annual Accounts 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 Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charitable Company and of its incoming resources and application of resources, including its income and ,expenditure, for that period. In preparing these financial statements, the Trustees are required to:

• select suitable accounting policies and then apply them consistently; • observe the methods and principles in the Charities SORP; • make judgments 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 Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charitable Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Charitable Company and enable them to ensure that the financial statements comply with the Companies Act 2006.They are also responsible for safeguarding the assets of the Charitable Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for ensuring that in its conduct and operation the Charitable Company applies financial and other controls, which conform with the requirements both of propriety and of good financial management. They are also responsible for ensuring grants received from the EFA/DfE have been applied for the purposes intended.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s web site. 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 Trustees on 23 November 2015 and signed on its behalf by: ........................................... Mr S Robinson Chair of Trustees

THE GILES ACADEMY

(A company limited by guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE GILES ACADEMY

We have audited the financial statements of The Giles Academy for the year ended 31 August 2015 whichcomprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and the relatednotes. The financial reporting framework that has been applied in their preparation is applicable law, UnitedKingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and the AcademiesAccounts Direction 2014 to 2015 issued by the Education Funding Agency.

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

RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND AUDITORS

As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of theAcademy for the purposes of company law) are responsible for the preparation of the financial statements andfor 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 applicablelaw and International Standards on Auditing (UK and Ireland). Those standards require us to comply with theAuditing Practices Board's Ethical Standards for Auditors.

SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient togive reasonable assurance that the financial statements are free from material misstatement, whether caused byfraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Academy'scircumstances and have been consistently applied and adequately disclosed; the reasonableness of significantaccounting estimates made by the Trustees; and the overall presentation of the financial statements. In addition,we read all the financial and non-financial information in the Trustees' report to identify material inconsistencieswith the audited financial statements and to identify any information that is apparently materially incorrect basedon, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If webecome aware of any apparent material misstatements or inconsistencies we consider the implications for ourreport.

OPINION ON FINANCIAL STATEMENTS

In our opinion the financial statements:

! give a true and fair view of the state of the Academy's affairs as at 31 August 2015 and of its incoming

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

! have been properly prepared in accordance with United Kingdom Generally Accepted Accounting

Practice; and

! have been prepared in accordance with the requirements of the Companies Act 2006 and the Academies

Accounts Direction 2014 to 2015 issued by the Education Funding Agency.

OPINION ON OTHER MATTER PRESCRIBED BY THE COMPANIES ACT 2006

In our opinion the information given in the Trustees' report, incorporating the Strategic report, for the financialyear for which the financial statements are prepared is consistent with the financial statements.

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THE GILES ACADEMY


INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE GILES ACADEMY

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 toreport to you if, in our opinion: ! adequate accounting records have not been kept, or returns adequate for our audit have not been

received from branches not visited by us; or ! the financial statements are not in agreement with the accounting records and returns; or

! certain disclosures of Trustees' remuneration specified by law are not made; or ! we have not received all the information and explanations we require for our audit.

Nicholas Cudmore FCA (Senior Statutory Auditor)

for and on behalf of

Duncan & Toplis Ltd

15 ChequergateLouthLincolnshireLN11 0LJDate:

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THE GILES ACADEMY


INDEPENDENT REPORTING ACCOUNTANTS' ASSURANCE REPORT ON REGULARITY TO THE GILESACADEMY AND THE EDUCATION FUNDING AGENCY

In accordance with the terms of our engagement letter dated 18 November 2014 and further to the requirementsof the Education Funding Agency (EFA) as included in the Academies Accounts Direction 2014 to 2015, we havecarried out an engagement to obtain limited assurance about whether the expenditure disbursed and incomereceived by The Giles Academy during the year 1 September 2014 to 31 August 2015 have been applied to thepurposes identified by Parliament and the financial transactions conform to the authorities which govern them.

This report is made solely to The Giles Academy and EFA in accordance with the terms of our engagementletter. Our work has been undertaken so that we might state to The Giles Academy and EFA those matters weare required to state in a report and for no other purpose. To the fullest extent permitted by law, we do not acceptor assume responsibility to anyone other than The Giles Academy and EFA, for our work, for this report, or forthe conclusion we have formed.

RESPECTIVE RESPONSIBILITIES OF THE GILES ACADEMY'S ACCOUNTING OFFICER AND THEREPORTING ACCOUNTANT

The accounting officer is responsible, under the requirements of The Giles Academy's funding agreement withthe Secretary of State for Education dated 31 August 2010, and the Academies Financial Handbook extant from1 September 2014, for ensuring that expenditure disbursed and income received is applied for the purposesintended by Parliament and the financial transactions conform to the authorities which govern them.

Our responsibilities for this engagement are established in the United Kingdom by our profession's ethicalguidance and are to obtain limited assurance and report in accordance with our engagement letter and therequirements of the Academies Accounts Direction 2014 to 2015. We report to you whether anything has cometo our attention in carrying out our work which suggests that in all material respects, expenditure disbursed andincome received during the year 1 September 2014 to 31 August 2015 have not been applied to purposesintended by Parliament or that the financial transactions do not conform to the authorities which govern them.

APPROACH

We conducted our engagement in accordance with the Academies Accounts Direction 2014 to 2015 issued byEFA. We performed a limited assurance engagement as defined in our engagement letter.

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

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

Our engagement includes examination, on a test basis, of evidence relevant to the regularity and propriety of theAcademy's income and expenditure.

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THE GILES ACADEMY


INDEPENDENT REPORTING ACCOUNTANTS' ASSURANCE REPORT ON REGULARITY TO THE GILESACADEMY AND THE EDUCATION FUNDING AGENCY (continued)

CONCLUSION

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

Nicholas Cudmore FCA (Senior Statutory Auditor)

Duncan & Toplis Ltd

15 ChequergateLouthLincolnshireLN11 0LJ

Date:

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THE GILES ACADEMY


STATEMENT OF FINANCIAL ACTIVITIES(Incorporating Income and Expenditure Account and Statement of Recognised Gains and Losses)

FOR THE YEAR ENDED 31 AUGUST 2015

Unrestrictedfunds

Restrictedfunds

Restrictedfixed asset

fundsTotal

fundsTotalfunds

Note2015

£2015

£2015

£2015

£2014

£

INCOMING RESOURCES

Incoming resources fromgenerated funds:

Voluntary income 2 133,055 - - 133,055 210,853 Activities for generating funds 3 418,936 42,535 - 461,471 428,235 Investment income 5 674 - - 674 1,020Incoming resources from

charitable activities: 6 Funding for the Academy's

educational operations - 5,247,775 20,577 5,268,352 5,501,764 Other incoming resources

from charitable activities - (10,181) - (10,181) -

TOTAL INCOMINGRESOURCES 552,665 5,280,129 20,577 5,853,371 6,141,872

RESOURCES EXPENDED

Costs of generating funds: Costs of generating voluntary

income 7 5,587 - - 5,587 10,636 Fundraising expenses and

other costs 4 19,240 - - 19,240 11,137Funding for the Academy's

educational operations 13 547,316 5,432,297 327,996 6,307,609 5,957,922Governance costs 9 - 44,166 - 44,166 49,534

TOTAL RESOURCESEXPENDED 12 572,143 5,476,463 327,996 6,376,602 6,029,229

NET INCOMING / (OUTGOING)RESOURCES BEFORE TRANSFERS (19,478) (196,334) (307,419) (523,231) 112,643

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STATEMENT OF FINANCIAL ACTIVITIES (continued)FOR THE YEAR ENDED 31 AUGUST 2015

Unrestrictedfunds

Restrictedfunds


fundsTotal

fundsTotalfunds

Note2015

£2015

£2015

£2015

£2014

£

Transfers between Funds 25 - (138,302) 138,302 - -

NET INCOME /(EXPENDITURE) FOR THEYEAR (19,478) (334,636) (169,117) (523,231) 112,643

Actuarial gains and losses ondefined benefit pensionschemes - 12,000 - 12,000 (257,000)

NET MOVEMENT IN FUNDSFOR THE YEAR (19,478) (322,636) (169,117) (511,231) (144,357)

Total funds at 1 September2014 146,156 (32,645) 13,341,309 13,454,820 13,599,177

TOTAL FUNDS AT 31AUGUST 2015 126,678 (355,281) 13,172,192 12,943,589 13,454,820

All activities relate to continuing operations.

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

The notes on pages 23 to 46 form part of these financial statements.

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(A company limited by guarantee)REGISTERED NUMBER: 07352123

BALANCE SHEETAS AT 31 AUGUST 2015

2015 2014Note £ £ £ £

FIXED ASSETS

Tangible assets 19 13,375,614 13,341,309

CURRENT ASSETS

Stocks 20 141,219 129,548

Debtors 21 169,517 129,998

Cash at bank 552,218 916,539

862,954 1,176,085

CREDITORS: amounts falling due withinone year 22 (287,967) (260,180)

NET CURRENT ASSETS 574,987 915,905

TOTAL ASSETS LESS CURRENT LIABILITIES 13,950,601 14,257,214

CREDITORS: amounts falling due aftermore than one year 23 (184,831) (27,394)

PROVISIONS FOR LIABILITIES

Other provisions 24 (10,181) -

NET ASSETS EXCLUDING PENSIONSCHEME LIABILITY 13,755,589 14,229,820

Defined benefit pension scheme liability 32 (812,000) (775,000)

NET ASSETS INCLUDING PENSIONSCHEME LIABILITY 12,943,589 13,454,820

FUNDS OF THE ACADEMY

Restricted funds:

Restricted funds 25 456,719 742,355

Restricted fixed asset funds 25 13,172,192 13,341,309

Restricted funds excluding pension liability 13,628,911 14,083,664

Pension reserve (812,000) (775,000)

Total restricted funds 12,816,911 13,308,664

Unrestricted funds 25 126,678 146,156

TOTAL FUNDS 12,943,589 13,454,820

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BALANCE SHEET (continued)

AS AT 31 AUGUST 2015

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

................................................

Mr S RobinsonChair of Trustees

................................................

Mr C Walls Accounting Officer


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CASH FLOW STATEMENTFOR THE YEAR ENDED 31 AUGUST 2015

2015 2014Note £ £

Net cash flow from operating activities 27 (235,539) 251,013

Returns on investments and servicing of finance 28 (933) (1,030)

Capital expenditure and financial investment 28 (341,724) (32,423)

CASH (OUTFLOW)/INFLOW BEFORE FINANCING (578,196) 217,560

Financing 28 213,875 (9,260)

(DECREASE)/INCREASE IN CASH IN THE YEAR (364,321) 208,300

RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDSFOR THE YEAR ENDED 31 AUGUST 2015

2015 2014 £ £

(Decrease)/Increase in cash in the year (364,321) 208,300

Cash outflow from decrease in debt and lease financing (213,875) 9,260

MOVEMENT IN NET FUNDS IN THE YEAR (578,196) 217,560

Net funds at 1 September 2014 879,572 662,012

NET FUNDS AT 31 AUGUST 2015 301,376 879,572


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NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 AUGUST 2015

1. ACCOUNTING POLICIES

1.1 Basis of preparation of financial statements

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

1.2 Fund accounting

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

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

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

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

1.3 Incoming resources

All incoming resources are included in the Statement of Financial Activities when the Academy hasentitlement to the funds, certainty of receipt and the amount can be measured with sufficientreliability.

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

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

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

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

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

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1. ACCOUNTING POLICIES (continued)

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

Income tax recoverable in relation to investment income is recognised at the time the investmentincome is receivable.

Other income, including the hire of facilities, is recognised in the period in which it is receivable andto the extent the goods have been provided or on completion of the service.

1.4 Resources expended

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

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

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

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

All resources expended are inclusive of irrecoverable VAT.

1.5 Going concern

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

1.6 Tangible fixed assets and depreciation

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

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

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicatethat the carrying value of any fixed asset may not be recoverable. Shortfalls between the carryingvalue of fixed assets and their recoverable amounts are recognised as impairments. Impairmentlosses are recognised in the Statement of Financial Activities.

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Tangible fixed assets are stated at cost less depreciation. Depreciation is not charged on freeholdland. Depreciation on other tangible fixed assets is provided at rates calculated to write off the costof those assets, less their estimated residual value, over their expected useful lives on the followingbases:

Freehold property - 2% on cost or valuationImprovements to property - 2% on costFixtures and fittings - 25% on costComputer equipment - 33% on costAssets under construction - nil

1.7 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance forobsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion offixed and variable overheads.

1.8 Taxation

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

1.9 Pensions

Retirement benefits to employees of the Academy are provided by the Teachers' Pension Scheme("TPS") and the Local Government Pension Scheme ("LGPS"). These are defined benefit schemesand the assets are held separately from those of the Academy.

The TPS is an unfunded scheme and contributions are calculated so as to spread the cost ofpensions over employees' working lives with the Academy in such a way that the pension cost is asubstantially level percentage of current and future pensionable payroll. The contributions aredetermined by the Government Actuary on the basis of quinquennial valuations using a prospectivebenefit method. As stated in note 32, the TPS is a multi-employer scheme and the Academy isunable to identify its share of the underlying assets and liabilities of the scheme on a consistent andreasonable basis. The TPS is therefore treated as a defined contribution scheme and thecontributions recognised as they are paid each year.

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

1.10 Realignment of comparatives

Following revisions to the EFA Accounts Direction, certain expenses in 2014/15 have been classifiedon a different basis to 2013/14. Where such differences arise, comparatives have been realigned toaccord with 2014/15 classifications.

2. VOLUNTARY INCOME

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2015£

2015£

2015£

2014£

Donations 10,331 - 10,331 5,101Other voluntary income 122,724 - 122,724 205,752

Voluntary income 133,055 - 133,055 210,853

I

3. ACTIVITIES FOR GENERATING FUNDS

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2015£

2015£

2015£

2014£

Lettings income 8,049 - 8,049 14,330Catering income 174,722 - 174,722 168,804Sale of goods 44,005 - 44,005 34,427Receipts from staff insurance claims - 42,535 42,535 49,570Other income 192,160 - 192,160 161,104

418,936 42,535 461,471 428,235

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4. TRADING ACTIVITIES

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2015£

2015£

2015£

2014£

Fundraising trading expenses

Goods for resale 19,240 - 19,240 11,137

19,240 - 19,240 11,137

Net expenditure from trading activities (19,240) - (19,240) (11,137)

5. INVESTMENT INCOME

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2015£

2015£

2015£

2014£

Bank account interest 674 - 674 1,020

6. FUNDING FOR THE ACADEMY'S EDUCATIONAL OPERATIONS

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2015£

2015£

2015£

2014£

DfE/EFA grants

General Annual Grant (GAG) - 4,940,161 4,940,161 5,143,994Pupil Premium - 187,079 187,079 164,961Other DfE/EFA Revenue grants - - - 40,531Devolved Formula Capital grant - 20,577 20,577 20,706SEN 1-1 Funding - 79,990 79,990 79,572Other government revenue grants - 30,364 30,364 52,000

- 5,258,171 5,258,171 5,501,764

7. COSTS OF GENERATING VOLUNTARY INCOME

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2015£

2015£

2015£

2014£

Other expenses 5,587 - 5,587 10,636

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8. EXPENDITURE BY CHARITABLE ACTIVITY

SUMMARY BY FUND TYPE

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2015£

2015£

2015£

2014£

Funding for the Academy's educationaloperations 547,316 5,760,293 6,307,609 5,957,922

SUMMARY BY EXPENDITURE TYPE

Staff costs Depreciation Other costs Total Total2015

£2015

£2015

£2015

£2014

£

Funding for the Academy'seducational operations 4,545,521 327,996 1,434,092 6,307,609 5,957,922

9. GOVERNANCE COSTS

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2015£

2015£

2015£

2014£

Auditors' remuneration - 11,750 11,750 11,750Auditors' non audit costs - 6,325 6,325 9,250Legal and professional fees - 11,800 11,800 11,287Personnel fees - 14,291 14,291 17,247

- 44,166 44,166 49,534

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10. DIRECT COSTS

Educationaloperations

Total2015

Total2014

£ £ £

Pension income 9,000 9,000 -Educational supplies 239,224 239,224 191,065Examination fees 122,314 122,314 95,192Staff development 64,093 64,093 52,957Other costs 137,674 137,674 147,790Wages and salaries 3,184,807 3,184,807 3,092,148National insurance 255,584 255,584 252,903Pension cost 446,061 446,061 399,545Depreciation 327,996 327,996 321,614

4,786,753 4,786,753 4,553,214

11. SUPPORT COSTS

Educationaloperations

Total2015

Total2014

£ £ £

Other finance income less expenses - - 9,000Technology costs 59,394 59,394 82,957Maintenance of premises and equipment 190,852 190,852 144,797Cleaning 8,146 8,146 5,523Rent and rates 31,766 31,766 30,980Energy costs 96,403 96,403 116,423Insurance 101,077 101,077 82,961Security 7,708 7,708 5,257Transport 149,859 149,859 152,864Telephone, postage and stationery 47,851 47,851 38,571Catering 116,377 116,377 112,997Other costs 26,485 26,485 28,861Bank interest and charges 1,607 1,607 2,050Operating leases - other 24,262 24,262 24,358Wages and salaries 544,508 544,508 483,669National insurance 23,805 23,805 20,689Pension cost 90,756 90,756 62,751

1,520,856 1,520,856 1,404,708

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12. RESOURCES EXPENDED

Staff costsNon Pay

Expenditure Total TotalOther costs

2015£

2015£

2015£

2014£

Costs of generating voluntary income - 5,587 5,587 10,636Fundraising expenses - 19,240 19,240 11,137

Costs of generating funds - 24,827 24,827 21,773

Direct costs 3,886,452 900,301 4,786,753 4,553,214Support costs 659,069 861,787 1,520,856 1,404,708

Charitable activities 4,545,521 1,762,088 6,307,609 5,957,922

Governance - 44,166 44,166 49,534

4,545,521 1,831,081 6,376,602 6,029,229

13. ANALYSIS OF RESOURCES EXPENDED BY ACTIVITIES

Activitiesundertaken

directlySupport

costs Total Total2015

£2015

£2015

£2014

£

Funding for the Academy's educationaloperations 4,786,753 1,520,856 6,307,609 5,957,922

14. NET INCOMING / (OUTGOING) RESOURCES

This is stated after charging:

2015 2014 £ £

Depreciation of tangible fixed assets:- owned by the Academy 327,996 321,614

Auditors' remuneration 11,750 11,750Auditors' remuneration - non audit fees 6,325 9,250

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15. STAFF

a. Staff costs

Staff costs were as follows:

2015 2014 £ £

Wages and salaries 3,691,545 3,546,684Social security costs 279,389 273,592Other pension costs (Note 32) 536,817 462,296

4,507,751 4,282,572Supply teacher costs 23,209 26,698Compensation payments 14,561 2,435

4,545,521 4,311,705

b. Staff severance payments

Included in compensation payments are non-contractual severance payments totalling £2,435 and£12,126. (2014: £2,435).

c. Staff numbers

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

2015 2014 No. No.

Teachers 74 74Administration and support staff 95 95Management 1 1

170 170

d. Higher paid staff

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

2015 2014 No. No.

In the band £80,001 - £90,000 2 2In the band £130,001 - £140,000 0 1In the band £150,001 - £160,000 1 0

3 3

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15. STAFF (continued)

The above employees earning more than £60,000 per annum participated in the Teacher's PensionScheme. During the year ended 31 August 2015, pension contributions for the members of staffamounted to £46,987 (2014: £44,066).

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16. TRUSTEES' REMUNERATION AND EXPENSES

The Principal and other staff Trustees only receive remuneration in respect of services they provideundertaking the roles of Principal and staff, and not in respect of their services as Trustees. OtherTrustees did not receive any payments, other than expenses, from the Academy in respect of their role asTrustees. The value of Trustees' remuneration fell within the following bands:

2015 2014 £'000 £'000

Mr C Walls - Head Teacher - Remuneration 150-155 135-140Employers Pension 20-25 15-20Mr G Bull, Staff Governor - Remuneration 5-10 40-45Employers Pension 0-5 5-10Mrs S Pell, Staff Governor - Remuneration 45-50 45-50Employers Pension 5-10 5-10Mr D Relton, Staff Governor - Remuneration 35-40Employers Pension 5-10Employers Pension 5-10 5-10Remuneration 35-40

During the year, no Trustees received any benefits in kind (2014 - £NIL).During the year ended 31 August 2015, expenses totalling £3,486 (2014 - £470) were reimbursed to 3Trustees (2014 - 3).

17. TRUSTEES' AND OFFICERS' INSURANCE

In accordance with normal commercial practice the Academy has purchased insurance to protectTrustees and officers from claims arising from negligent acts, errors or omissions occurring whilst onacademy business. The insurance provides cover up to £1,000,000 on any one claim and the cost for theyear ended 31 August 2015 was £746 (2014 - £645). The cost of this insurance is included in the totalinsurance cost.

18. OTHER FINANCE INCOME (EXPENSE)

2015 2014 £ £

Expected return on pension scheme assets 57,000 54,000Interest on pension scheme liabilities (66,000) (63,000)

(9,000) (9,000)

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19. TANGIBLE FIXED ASSETS

Freeholdproperty

Improvement to property

Fixtures andfittings

Computerequipment

Assetsunder

construction£ £ £ £ £

Cost

At 1 September 2014 12,606,007 1,379,772 152,422 157,480 -Additions 283,465 2,953 22,908 34,866 18,109

At 31 August 2015 12,889,472 1,382,725 175,330 192,346 18,109

Depreciation

At 1 September 2014 698,316 54,934 102,829 98,293 -Charge for the year 232,772 27,591 30,865 36,768 -

At 31 August 2015 931,088 82,525 133,694 135,061 -

Net book value

At 31 August 2015 11,958,384 1,300,200 41,636 57,285 18,109

At 31 August 2014 11,907,691 1,324,838 49,593 59,187 -

Total£

Cost

At 1 September 2014 14,295,681Additions 362,301

At 31 August 2015 14,657,982

Depreciation

At 1 September 2014 954,372Charge for the year 327,996

At 31 August 2015 1,282,368

Net book value

At 31 August 2015 13,375,614

At 31 August 2014 13,341,309

Included in land and buildings is freehold land at valuation of £967,393 (2014 - £967,393), which is notdepreciated.

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20. STOCKS

2015 2014 £ £

Finished goods and goods for resale 141,219 129,548

21. DEBTORS

2015 2014 £ £

Trade debtors 10,896 3,772Other debtors 53,194 41,624Prepayments and accrued income 105,427 84,602

169,517 129,998

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22. CREDITORS:Amounts falling due within one year

2015 2014 £ £

Other loans 66,011 9,573Trade creditors 85,569 90,835Other taxation and social security 80,655 -Other creditors 42,775 146,647Accruals and deferred income 12,957 13,125

287,967 260,180

£Deferred income

There was no deferred income as at 31 August 2015.

23. CREDITORS:Amounts falling due after more than one year

2015 2014 £ £

Other loans 184,831 27,394

Included within the above are amounts falling due as follows:

2015 2014 £ £

Between one and two years

Other loans 66,012 10,012

Between two and five years

Other loans 118,819 17,382

24. PROVISIONS

Provisions£

At 1 September 2014 -Additions 10,181

At 31 August 2015 10,181

Provisions

A trainee teacher left during the year for whom the academy received funding. An element of this fundingis expected to be repayable by the academy. It is unknown when this amount will become repayable.

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25. STATEMENT OF FUNDS

BroughtForward

Incomingresources

ResourcesExpended

Transfersin/out

Gains/(Losses)

CarriedForward

£ £ £ £ £ £

Designated funds

School fund 86,252 134,211 (125,559) - - 94,904

General funds

Other income 59,904 418,454 (446,584) - - 31,774

Total Unrestrictedfunds 146,156 552,665 (572,143) - - 126,678

Restricted funds

General AnnualGrant (GAG) 723,131 4,974,820 (5,137,753) (138,302) - 421,896

Other DfE/EFAgrants 6,102 152,420 (181,136) - - (22,614)

Government grants 13,122 69,809 (67,490) - - 15,441Other income - 83,080 (41,084) - - 41,996Pension reserve (775,000) - (49,000) - 12,000 (812,000)

(32,645) 5,280,129 (5,476,463) (138,302) 12,000 (355,281)

Restricted fixed asset funds

DfE/EFA capitalgrants 215,095 20,577 - - - 235,672

Capital expenditurefrom GAG 580,815 - (95,224) 138,302 - 623,893

Capital expenditurefrom otherincome 12,545,399 - (232,772) - - 12,312,627

13,341,309 20,577 (327,996) 138,302 - 13,172,192

Total restrictedfunds 13,308,664 5,300,706 (5,804,459) - 12,000 12,816,911

Total of funds 13,454,820 5,853,371 (6,376,602) - 12,000 12,943,589

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

General Annual Grant (GAG) must be used for the normal running costs of the Academy.

Other DFE / EFA Grants comprise of various grants awarded for specific projects, in particular to booststandards of attainment. Grants include Pupil Premium funding which is intended to support educationfrom pupils from a disadvantaged background.

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25. STATEMENT OF FUNDS (continued)

Local Government Grants includes funding provided for pupils with Statements of Special EducationalNeeds and is used by the academy to assist with the pupils education.

Devolved capital funding is that provided to academies to use as it sees fit in areas such asimprovements to buildings or facilities, or the repair or refurbishment of such.

Other capital grants are provided to the academy based on specific bids for individual projects.

Other income comprises various other receipts including school meals. The income is classed asrestricted or unrestricted based on the nature of the income.

The pension reserve arises from the actuarial measurement of the Academy's share of the LocalGovernment Pension Scheme deficit. This deficit is recorded as a provision. The actuarial cost ofemploying staff during the year is initially reflected in the normal running costs of the school in therestricted pension fund. The amount included in resources expended represents the pension cost for theyear charged to income and expenditure that arises from actuarial calculations of service cost rather thanemployer contributions paid, and amounts to £23,000. Actuarial gains and losses that arise from changesin assumptions by the actuary or wider influences are shown in the restricted pension fund, the movementthis year being a net £257,000 actuarial increase in the net pension fund deficit.

Restricted fixed asset funds represent monies received in respect of and spent on fixed assets. Thisincludes assets inherited on conversion. The total of resources expended within this fund include the depreciation charge for the year. The transfers figure is the amount of other funds used to acquire fixedassets.

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

SUMMARY OF FUNDS

BroughtForward

Incomingresources

ResourcesExpended

Transfersin/out

Gains/(Losses)

CarriedForward

£ £ £ £ £ £

Designated funds 86,252 134,211 (125,559) - - 94,904General funds 59,904 418,454 (446,584) - - 31,774

146,156 552,665 (572,143) - - 126,678

Restricted funds (32,645) 5,280,129 (5,476,463) (138,302) 12,000 (355,281)Restricted fixed

asset funds 13,341,309 20,577 (327,996) 138,302 - 13,172,192

13,454,820 5,853,371 (6,376,602) - 12,000 12,943,589

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26. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestrictedfunds

Restrictedfunds


fundsTotal

fundsTotalfunds

2015£

2015£

2015£

2015£

2014£

Tangible fixed assets 224,000 - 13,151,614 13,375,614 13,341,309Current assets 236,122 606,254 20,578 862,954 1,176,085Creditors due within one year (155,263) (132,704) - (287,967) (260,180)Creditors due in more than one

year (168,000) (16,831) - (184,831) (27,394)Provisions for liabilities and

charges (10,181) (812,000) - (822,181) (775,000)

126,678 (355,281) 13,172,192 12,943,589 13,454,820

27. NET CASH FLOW FROM OPERATING ACTIVITIES

2015 2014Continuing Discontinued Total

£ £ £ £

Net incoming resources beforerevaluations (523,231) - (523,231) 112,643

Returns on investments and servicingof finance 933 - 933 1,030

Depreciation of tangible fixed assets 327,996 - 327,996 321,614Capital grants from DfE (20,577) - (20,577) (20,706)Increase in stocks (11,671) - (11,671) (127,758)Increase in debtors (39,519) - (39,519) (77,915)(Decrease)/increase in creditors (18,470) - (18,470) 19,105FRS 17 adjustments 49,000 - 49,000 23,000

Net cash (outflow)/inflow fromoperations (235,539) 251,013

28. ANALYSIS OF CASH FLOWS FOR HEADINGS NETTED IN CASH FLOW STATEMENT

2015 2014 £ £

Returns on investments and servicing of finance

Interest received 674 1,020Interest paid (1,607) (2,050)

Net cash outflow from returns on investments and servicingof finance (933) (1,030)

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28. ANALYSIS OF CASH FLOWS FOR HEADINGS NETTED IN CASH FLOW STATEMENT (continued)

2015 2014 £ £

Capital expenditure and financial investment

Purchase of tangible fixed assets (362,301) (53,129)Capital grants from DfE 20,577 20,706

Net cash outflow capital expenditure (341,724) (32,423)

2015 2014 £ £

Financing

Other new loans 224,000 -Repayment of other loans (10,125) (9,260)

Net cash inflow/(outflow) from financing 213,875 (9,260)

29. ANALYSIS OF CHANGES IN NET FUNDS

1September Cash flow

Othernon-cashchanges 31 August

2014 2015£ £ £ £

Cash at bank and in hand: 916,539 (364,321) - 552,218

Debt:

Finance leases - - - -Debts due within one year (9,573) - (56,438) (66,011)Debts falling due after more than one year (27,394) - (157,437) (184,831)

Net funds 879,572 (364,321) (213,875) 301,376

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30. CONTINGENT LIABILITIES

During the period of the Funding Agreement, in the event of the sale or disposal by other means of anyasset for which a Government capital grant was received, the Academy is required either to re-invest theproceeds or to repay the Secretary of State for Education the same proportion of the proceeds of the saleor disposal as equates with the proportion of the original cost met by the Secretary of State.

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

(a) the value at that time of the Academy's site and premises and other assets held for the purpose of theAcademy: and(b) the extent to which expenditure incurred in providing those assets was met by payments by theSecretary of State under the Funding Agreement.

31. CAPITAL COMMITMENTS

At 31 August 2015 the Academy had capital commitments as follows: 2015 2014

£ £

Contracted for but not provided in these financial statements 32,045 -

32. PENSION COMMITMENTS

The Academy's employees belong to two principal pension schemes: the Teacher's Pension Scheme forEngland and Wales (TPS) for academic and related staff; and the Local Government Pension Scheme(LGPS) for non-teaching staff, which is managed by Lincolnshire County Council. Both are defined benefitschemes.

The pension costs are assessed in accordance with the advice of independent qualified actuaries. Thelatest actuarial valuation of the TPS related to the period ended 31 March 2004 and of the LGPS 31 March2010.

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

Teachers' Pension Scheme

Introduction

The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed bythe Teachers' Pensions Regulations (2010) and, from 1 April 2014, by the Teachers’ Pension SchemeRegulations 2014. Membership is automatic for full-time teachers in academies and, from 1 January 2007,automatic for teachers in part-time employment following appointment or a change of contract, althoughthey are able to opt out.

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

The Teachers' Pensions Regulations require an annual account to be kept of receipts and expenditure(including the cost of pensions’ increases). From 1 April 2001, the account has been credited with a realrate of return, which is equivalent to assuming that the balance in the account is invested in notional

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32. PENSION COMMITMENTS (continued)

investments that produce that real rate of return.

Valuation of the Teachers’ Pension Scheme

The latest actuarial valuation of the TPS was carried out as at 31 March 2012 and in accordance with thePublic Service Pensions (Valuations and Employer Cost Cap) Directions 2014. The valuation report waspublished by the Department for Education on 9 June 2014. The key elements of the valuation andsubsequent consultation are:

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

administration charge (currently 14.1%);

! total scheme liabilities for service to the effective date of £191,500 million, and notional assets of

£176,600 million, giving a notional past service deficit of £14,900 million; and

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

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

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

Teachers’ Pension Scheme Changes

Lord Hutton made recommendations in 2011 about how pensions can be made sustainable andaffordable, whilst remaining fair to the workforce and the taxpayer. The Government accepted LordHutton’s recommendations as the basis for consultation with trade unions and other representativebodies. In March 2012 the Department for Education published proposals for the design for a reformedTPS.

The key provisions of the reformed scheme include: a pension based on career average earnings; anaccrual rate of 1/57th; and a Normal Pension Age equal to State Pension Age, but with options to enablemembers to retire earlier or later than their Normal Pension Age. Pension benefits built up before 1 April2015 will be fully protected.

In addition, the proposed final agreement includes a Government commitment that those within 10 yearsof Normal Pension Age on 1 April 2012 will see no change to the age at which they can retire, and nodecrease in the amount of pension they receive when they retire. There will also be further transitionalprotection, tapered over a three and a half year period, for people who would fall up to three and a halfyears outside of the 10 year protection.

In his interim report of October 2010, Lord Hutton recommended that short-term savings were alsorequired, and that the only realistic way of achieving these was to increase member contributions. At theSpending Review 2010 the Government announced an average increase of 3.2 percentage points on thecontribution rates by 2014-15. The increases have been phased in from April 2012 on a 40:80:100%basis.

The Department for Education has continued to work closely with trade unions and other representativesbodies to develop the reformatted Teachers’ Pension Scheme and regulations giving effect to it came intoforce on 1 April 2014. Communications are being rolled out and the reformatted scheme will commenceon 1 April 2015.

Under the definitions set out in Financial Reporting Standard (FRS 17) Retirement Benefits, the TPS is a

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multi-employer pension scheme. The Academy is unable to identify its share of the underlying assets andliabilities of the scheme. Accordingly, the Academy has taken advantage of the exemption in FRS 17 andhas accounted for its contributions to the scheme as if it were a defined contribution scheme. TheAcademy has set out above the information available on the scheme.

Local Government Pension Scheme

The LGPS is a funded defined benefit scheme, with assets held in separate trustee-administered funds.The total contribution made for the year ended 31 August 2015 was £137,000, of which employer'scontributions totalled £101,127 and employees' contributions totalled £35,873. The agreed contributionrates for future years are 19.9% for employers and % for employees.

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

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

Expectedreturn at Fair value at

Expectedreturn at Fair value at

31 August 31 August 31 August 31 August2015 2015 2014 2014

% £ % £

Equities 3.80 816,000 6.30 689,000Bonds 3.80 142,000 3.60 118,000Property 3.80 131,000 4.50 100,000Cash 3.80 - 3.30 -

Total market value of assets 1,089,000 907,000Present value of scheme liabilities (1,901,000) (1,682,000)

Deficit in the scheme (812,000) (775,000)

The amounts recognised in the Balance sheet are as follows:

2015 2014 £ £

Present value of funded obligations (1,901,000) (1,682,000)Fair value of scheme assets 1,089,000 907,000

Net liability (812,000) (775,000)

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The amounts recognised in the Statement of Financial Activities are as follows:

2015 2014 £ £

Current service cost (177,000) (120,000)Interest on obligation (66,000) (63,000)Expected return on scheme assets 57,000 54,000

Total (186,000) (129,000)

Actual return on scheme assets 24,000 105,000

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

2015 2014 £ £

Opening defined benefit obligation 1,682,000 1,312,000Current service cost 177,000 120,000Interest cost 66,000 63,000Contributions by employees 37,000 29,000Actuarial (Gains)/losses (45,000) 174,000Benefits paid (16,000) (16,000)

Closing defined benefit obligation 1,901,000 1,682,000

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

2015 2014 £ £

Opening fair value of scheme assets 907,000 817,000Expected return on assets 57,000 54,000Actuarial gains and (losses) (33,000) (83,000)Contributions by employer 137,000 106,000Contributions by employees 37,000 29,000Benefits paid (16,000) (16,000)

1,089,000 907,000

The cumulative amount of actuarial gains and losses recognised in the Statement of Total RecognisedGains and Losses was £218,000 (2014 - £230,000).

The Academy expects to contribute £148,000 to its defined benefit pension scheme in 2016.

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

2015 2014

Equities %75.00 %76.00Bonds %13.00 %13.00Property %12.00 %11.00Cash %- %-

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

2015 2014

Discount rate for scheme liabilities %3.80 %3.70Expected return on scheme assets at 31 August %3.80 %5.80Rate of increase in salaries %4.10 %4.00Rate of increase for pensions in payment / inflation %2.70 %2.70

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

2015 2014

Retiring todayMales 22.2 22.2Females 24.4 24.4

Retiring in 20 yearsMales 24.5 24.5Females 26.8 26.8

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

Defined benefit pension schemes

2015 2014 2013 £ £ £

Defined benefit obligation (1,901,000) (1,682,000) (1,312,000)Scheme assets 1,089,000 907,000 817,000

Deficit (812,000) (775,000) (495,000)

Experience adjustments on scheme liabilities 45,000 (174,000) (31,000)Experience adjustments on scheme assets (33,000) (83,000) 64,000

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Sensitivity Analysis

Approx. %increase in

employerliability

£

Approx.monetary

amount

£

0.5% decrease in Real Discount Rate - -1 year increase in member life expectancy - -0.5% increase in the Salary Increase Rate - -0.5% increase in the Pension increase Rate - -

33. OPERATING LEASE COMMITMENTS

At 31 August 2015 the Academy had annual commitments under non-cancellable operating leases asfollows:

Land and buildings Other2015 2014 2015 2014

£ £ £ £

Expiry date:

Within 1 year - 1,590 32,686 -Between 2 and 5 years - - 8,846 31,991

34. RELATED PARTY TRANSACTIONS

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

During the year the Academy purchased architectural services from Mr R Williams, a Trustee of theAcademy totaling £2,280 (2014: £675).

The charges made by Mr R Williams to the Academy are for a nominal amount at or below cost.

During the year the Academy purchased electrical services from Brian Hall Electrical Limited. Mrs Trevor,a trustee of the Academy, is married to an employer of the company. The services totalled £35,690 for2015 (2014: £Nil).

35. CONTROLLING PARTY

The Trustees have ultimate control of the Academy.

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Documents

Giles Academy · The Trustees of Giles Academy are also the directors of the Charitable Company for the purposes of company law. The Charitable Company is known as Giles Academy