2014 Lincoln College Academy Trust Final Accounts...K Batty (resigned 16 December 2014) N Bilton...

Registered number: 08238194

LINCOLN COLLEGE ACADEMY TRUST (previously The Newark Academy Trust)

(A company limited by guarantee)

TRUSTEES REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2014

LINCOLN COLLEGE ACADEMY TRUST


CONTENTS

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

Page

Trustees' report 2 - 10

Governance statement 11 - 13

Statement on regularity, propriety and compliance 14

Trustees' responsibilities statement 15

Independent auditors report 16- 17

Independent reporting accountant's assurance report on regularity 18 - 19

Statement of financial activities 20

Balance sheet 21

Cash flow statement 22

Notes to the financial statements 23 -41



REFERENCE AND ADMINISTRATIVE DETAILS OF THE ACADEMY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2014

Members

Trustees

Company registered number

Principal and registered office

Company secretary

Senior leadership team

Independent auditor

Bankers

Solicitors

Lincoln College Corporation J Allen (resigned 31 July 2014) M Serna I Sackree (resigned 31 August 2014) G Lee (appointed 1 June 2014) G Headland (appointed 4 August 2014)

J Allen (resigned 31 July 2014) J Barrie (appointed 17 September 2014) K Batty (resigned 16 December 2014) N Bilton (resigned 31 May 2014) P Doody (resigned 26 September 2014) J Glasson (resigned 31 May 2014) R Haftersley (resigned 31 May 2014) G Headland (appointed 4 August 2014) K Jasper (resigned 26 September 2014) G Lee (appointed 1 June 2014) A Muter (resigned 31 May 2014) J Pinchbeck (resigned 26 September 2014) R Repper (resigned 31 May 2014) J Richardson (resigned 31 May 2014) D Rollin (resigned 31 May 2014) E Rossall MBE M Serna V Simcock (appointed 1 June 2014, resigned 26 September 2014)

08238194

Lincoln College Monks Road Lincoln Lincolnshire LN2 5HQ

S Bolton

K Jasper, Principal - The Newark Academy V Simcock, Principal - The Gainsborough Academy

BDO LLP St Hugh's 23 Newport Lincoln LN1 3DN

NatWest 225 High Street Lincoln LN2 1AZ

Langleys Olympic House Doddington Road Lincoln LN6 3SE

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TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2014

The trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the audited financial statements of Lincoln College Academy Trust (the Trust) for the year ended 31 August 2014. The trustees confirm that the annual report and financial statements of the Trust comply with the current statutory requirements, the requirements of the Trust's governing document and the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" Issued in March 2005. The annual report serves the purposes of both a trustees' report and a directors' report under company law.

The Trust operates two secondary academies, one in Nottinghamshire and one in Lincolnshire. Its academies have a combined pupil capacity of 2,400 and had a roll of 1,530 as at 31 August 2014.

Structure, governance and management

a. 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 Lincoln College Academy Trust are also the directors of the charitable company for the purposes of company law. The charitable company is known as Lincoln College Academy Trust. The charitable company changed Its name on 1 June 2014 from The Newark Academy Trust and its Articles of Association.

Details of the trustees who served during the year are included in the Reference and Administrative Details on page 1.

b. 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.

C. Method of recruitment and appointment or election of trustees

The charitable trust changed its Articles of Association during the year to reflect a multi-academy trust. The members may now appoint up to 10 directors/trustees through such process as they may determine. The members have agreed that these appointments will be made through the Sponsor's Search Committee. The academy trust is required to have a minimum of three directors and is not subject to a maximum although the total number of directors including the Chief Executive Officer (If appointed) who are employees of the company shall not exceed one third of the total number of directors. There shall be a minimum of two parent directors unless there are Local Governing Bodies which include at least two Parent Members. The members have agreed that two parents shall be Parent Members of each academy local governing body within the academy trust. Parent members of Local Governing Bodies shall either be elected or appointed. The directors themselves may co-opt directors.

The term of office for any director shall be four years save that this time limit shall not apply to the Chief Executive Officer. Subject to remaining eligible to be a particular type of director, any director may be re-appointed or re-elected.

d. Policies and procedures adopted for the induction and training of trustees

All trustees are provided with access to policies, procedures, minutes, budgets, plans and other documents which they need to fulfil their role. Any induction required is tailored specifically to the needs of the individual but would include a tour of the academies, meeting with the Chair and Clerk and senior managers within the academies. All trustees are required to undertake an annual assessment of their skills and experience and this Is used to identify individual training needs and to support development.

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TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2014

e. Organisational structure

The academy trust is sponsored by Lincoln College. The academy trust for the majority of the year was a single academy trust with one academy (The Newark Academy). On 1 June 2014, the trust became a multi-academy trust and The Gainsborough Academy (previously The Trent Valley Academy) joined the academy trust. The Principal of The Newark Academy under the single academy trust was Accounting Officer and In the absence of a Chief Executive Officer in place, remains as the Accounting Officer.

As a single academy trust, a scheme of delegation set out the delegated authority given to the Finance Committee, the Audit Committee, the Principal and that which remained with the trustees. On becoming a multi-academy trust, the scheme of delegation was amended to give delegated control to the Local Governing Bodies of the two academies. There was also the formation of a Trust Finance Committee and a Trust Audit Committee.

The trustees are responsible for setting strategy, general policy, adopting an annual plan and budget ensuring funding is spent in line with the funding agreement and working within any restrictions. Expenditure is monitored by reports to the Finance Committee and trustees. All limits on expenditure are set in the Financial Regulations.

The senior leadership team for the year to 31 August 2014 at The Newark Academy comprised a Principal, the two Vice Principals and two Assistant Principals. The senior leadership team, which have been appointed during the year in order to take the Academy forward, manage the control of the Academy at an executive level implementing the policies laid down by the Local Governing Body and reporting back to them. Other senior officers in the school including Faculty and Support Staff leaders are responsible for the authorisation of spending within agreed budgets as overseen by the Principal and Chief Financial Officer.

The senior leadership team for the three months to 31 August 2014 at The Gainsborough Academy comprised an Acting Principal a Vice Principal, an Associate Vice Principal and three Assistant Principals. The Senior leadership team, who have been appointed to take the Academy forward, manage the control of the Academy at an executive level, implementing the policies laid down by the Local Governing Body and reporting back to them. As at 1 June 2014, the Academy re-aligned strategic roles and appointed a senior leadership team comprising a Principal, two Vice principals and two Assistant Principals to take the academy forward from September 2014. Other leaders in the school, including Heads of department and Support staff leaders are responsible for the authorisation of spending within agreed budgets as overseen by the Principal and Chief Financial Officer.

f. Connected organisations, including related party relationships

Lincoln College is the Trusts' sole sponsor. Some trustees of the Trust are also Governors of Lincoln College. During the period, Lincoln College provided a range of strategic corporate resources, including Finance, Human Resources, Payroll and IT Consultancy at arms length and not for any profit. The value of these services was £125,000.

g. Trustees' indemnities

Qualifying third party indemnity provision has been obtained by the Trust for the benefit of the trustees.

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Objectives and Activities

a. Objects and aims

The principal objects and activity of the charitable company is the advance, for the public benefit, of education in the United Kingdom, in particular but without prejudice to the generality of the foregoing by establishing, maintaining, carrying on, managing and developing two schools offering a broad and balanced curriculum; and to promote for the benefit of the Inhabitants of Newark and Gainsborough and the surrounding areas of each school, the provision of facilities for recreation or other leisure time occupation of individuals who have need of such facilities by reason of their youth, age, Infirmity or disablement, financial hardship or social and economic circumstances or for the public at large in the interests of social welfare and with the object of improving the condition of life of the said inhabitants.

The Newark Academy

The main objectives of The Newark Academy during the period ended 31 August 2014 are summarised below:

To drive to continually bring out the best in everyone: to discover the best In everyone, to expect the best from everyone, and to support all to achieve their personal best. For all students to enjoy making exceptional progress in a caring, safe and inclusive environment where success for all is celebrated. To ensure every student is equipped with the values, skills and qualifications to make Informed, lifelong, moral and economic contributions to a modem, technology reliant local, national and global society. For everyone to regard The Newark Academy as being central to the community it serves, and that the views of all contribute to its continued improvement, development and success.

• For everyone to be proud to be associated with The Newark Academy and carry on sharing their lifelong love of learning from generation to generation.

The Gainsborouoh Academy

The main objectives of the Gainsborough Academy during the period ended 31 August 2014 are summarised below:

• To create a climate where all stakeholders are encouraged to achieve their full potential through development of an ethos of lifelong learning.

• For all students to make exceptional progress in a caring, safe environment where success for all is celebrated at all times.

• For all students to develop the skills they require to flourish in a twenty-first century environment with an informed awareness of global Issues and the capacity to make a powerful contribution to the moral and economic progress of the nation.

• For the academy to be at the heart of the local community and for it to become a resource to support the regeneration of the local economy and make a contribution to all aspects of community life, both economic, educational and social.

• For the Academy to be a centre for the development of outstanding learning and to be a key vehicle for developing learning for all members of the local community, and to be recognised as such.

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b. Objectives, strategies and activities

The Newark Academy

We at the Newark Academy strive to be the very best we can be, at the heart of the community we serve. We will become renowned for delivering excellence and challenge for all, equipping every student with a wide range of qualifications and skills as well as the ability and agility to be successful in all areas of their lives.

Achievement of Students - Outcomes • Ensure that all students make at least expected progress in English and Maths. • Vulnerable groups make better than expected progress. • All students' aspirations and expectations are raised. • High achievers make better than expected progress.

Quality of Teaching — Outcomes Improve quality of learning and teaching so majority of lessons are good or better. Relevant professional impacted learning in place. Core skills delivered effectively across the curriculum. Short, medium and long term planning meets the needs of all.

Behaviour, Attendance and Safety of Students — Outcomes • Pastoral system meets the needs of all. • Improve attendance and punctuality. • Develop engagement and behaviour for learning. • Develop student leadership and responsibilities across the school.

Leadership and Management Outcomes • Clarity in structure, right people in right roles. • Appraisal structure fully in place for all. • All leaders empowered, highly effective and accountable. • Develop student leadership and responsibilities across the school.

The Wider Community (Social, Moral, Spiritual, Cultural experience) — Outcomes • Students show pride In The Newark Academy. • Students understand their future pathways. • The ethos of the academy Is supported by students, staff, parents and providers; local business, local

schools, HE. • The Newark Academy becomes the first choice school for the area.

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b. Objectives, strategies and activities (continued)

The GaInsborouah Academy

The main objectives of The Gainsborough Academy during the 3 month period ended 31 August 2014 are summarised below:

• To be the first choice secondary for local parents • To have excellent and consistently improving results placing us amongst the best comprehensive schools • To enable all students to achieve their very best and progress to succeed at Level 3 courses and then

university and/or jobs with training To gain recognition for excellent curriculum provision

• To play a key role at the heart of the local community To ensure the Academy moves out of serious weakness Judgement from Ofsted May13

We will achieve this by focussing on the following priorities:

• Closing performance gaps, accelerating progress and raising standards of achievement • Creating a climate for learning — improving the quality of teaching and student behaviour, attendance and

engagement • Curriculum and extra-curricular development • Career structure and development - for teachers, support staff and leaders

Community partnership and engagement

c. Public benefit

The trustees have given careful consideration to the Charity Commission's general guidance on public benefit and have complied with the duty bestowed on them.

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LINCOLN COLLEGE ACADEMY. TRUST



Strategic report

Achievements and performance

a. Going concern

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

b. Key financial performance indicators

Staff Attendance (%)

The Gainsborough Academy The Newark Academy 2011 - 12 Outcome

2012 - 13 Outcome

2013 - 14 Outcome

2011 - 12 Outcome

2012.-IS Outcome

2013 - 14 Outcome

Teaching 96.3 94.3 93.7 91.7 95.7 96.1 Support 94.2 95.2 94.2 92.6 95.7 97.2

Quality of Teaching (%)


2011 - 12 Outcome

2011 - 12 Outcome

2011 - 12 Outcome

2011 - 12 Outcome

2011 - 12 Outcome

Outstanding n/a 0 9 5 11 32 Good n/a 30 63 37 48 49 Requires improvement

n/a 45 21 47 39 17

Inadequate n/a 25 7 11 2 2

Student Attendance (%)

The Gainsborouqh Academy The Newark Academy 2011 - 12 Outcome

2012 - 13 Outcome

2013 - 14 Outcome

2011 - 12 Outcome

2012 - 13 Outcome

2013 - 14 Outcome

K53 & 4 92.7 93.0 93.3 93.96 93.0 94.2 K85 n/a n/a n/a 87.8 96.6 97.4 Whole school 92.7 93.0 93.3 93.5 93.2 94.3

Persistent Absence (%)


2012 - 13 Outcome

2013 - 14 Outcome

2011 - 12 Outcome

2012 - 13 Outcome

2013 - 14 Outcome

Whole school 10.9 8.8 11.3 8.2 10.3 7.6 KS5 n/a n/a n/a 0 0 0

Fixed term exclusions (total) The Gainsborough Academy The Newark Academy 2011 -12 Outcome n/a 633 2012 - 13 Outcome 280 186.5 2013 - 14 Outcome 328 50.5

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b. Key performance indicators (continued)

Key Stage 4 Attainment The Gainsborouqh Academy The Newark Academy 2011 - 12 Outcome

2012 - 13 Outcome

2013 - 14 Outcome

2011 - 12 Outcome

2012 - 13 Outcome

2013 - 14 Outcome

%5+ At-C inc English & Maths 37 36 39 52 56 51 %5+ A*-C inc English & Maths (PP) 16 27 24 43 28 35 %5+ At-C inc English & Maths (Non PP)

50 41 48 56 67 52

%5+ A*-G inc English & Maths 96 91 92 95 95 96 % C+ English 47 50 51 57 64.7 64 % 3+ Levels of progress English 56 61 49 53 53.8 57 % 4+ Levels of progress English 10 18 13 18 13 15 % C+ Maths 53 52 54 62 57.7 69 % 3+ Levels of progress Maths 49 49 53 62 48.1 55 %4+ Levels of progress Maths 7 14 15 22 14 11

Key Stage 5 Attainment (The Newa k Academy) 2012 13 Outcome 2013- 14 Outcome % of Students achieving AAB+ in 3 Facilitating Subjects 6 0 % of Students achieving AAB+ in 2 Facilitating Subjects We 0 % of Students achieving 3 A Levels AtE (Including. equivalents) 76 44.4 % of Students achieving 2 A Levels A*-E (including. equivalents) 88 83.3 % of Students achieving 1 A Levels A"-E (including. equivalents) 100 100 Year 13 APSPC (Academic) 746.6 663 Year 13 APSPE (Academic) 184.6 182 Year 13 APSPC (Vocational) nia 866 Year 13 APSPE (Vocational) n/a 238 Year 13 APSPC (Combined) 796 665 Year 13 APSPE (Combined) 184.6 182

c. Review of activities

The Newark Academy

• OFSTED inspection May 2014 — Overall 3, with 2 for Leadership and Management, the 6th form reported as good.

• Predicted rise in students numbers Into Year 7 — up from 90 to 120 Intake. • Granted a new building under Priority School Building Programme funding. • Winner of Student Leadership Academy for England.

Despite national changes to the reporting and structure of GCSEs the final results English GCSE were maintained and Mathematics improved by over 10 percentage points. 100% of students achieved passes, and 88% of students attained 5A* - C GCSEs or equivalence, improving by 6 percentage points.

• A level results have improved, achieving 100% pass rate with a 10 percent point increase in the higher grades A* - C, 5% Age- A.

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TRUSTEES REPORT (continued) FOR THE YEAR ENDED 31 AUGUST 2014

c. Review of activities (continued)

The Gainsborough Academy

On June 1st the Academy converted to The Gainsborough Academy sponsored by Lincoln College. The Academy was in an Ofsted Category "Serious Weaknesses" and thus received monitoring visits from Ofsted.

Ofsted monitoring Inspection March 2014 - "The quality of education is improving at a good rate. Good practice is being maintained and weak teaching and ineffective leadership are being addressed effectively. Students say that the academy is a different place since September 2013. They welcome the significant improvements to teaching and behaviour and say that the reputation of the academy is much better. Students think that the academy is moving In the right direction and report that the atmosphere within the academy has markedly improved. Consequently, they are happier and feel more safe and secure"

Despite national changes to the reporting and structure of GCSEs, the GCSEs were maintained and In fact saw a small rise. 100% of students achieved passes, and 51% of students attained 5A* - C GCSEs.

Financial review

a. Financial and risk management objectives and policies

The Trust has a risk register which highlights potential risks. Along with the risk being identified, controls are put in place to minimise the risk and any on-going treatment or action is identified. The risk plan is reviewed annually by trustees and monitored by the individual academy management teams.

b. Principal risks and uncertainties

The trustees have established a robust process for Identifying and managing risk through the remit of the Audit Committee and receive regular reports. Risk Registers are maintained detailing a wide range of potential risks to the Trust and the academies with additional control measures in place to manage those risks deemed to be of greater significance. All areas of risk are allocated a responsible nominee.

The principal risks and uncertainties kept under review Include: • Student achievement • Student progress • Student recruitment • Safeguarding • Health and Safety • Financial performance

C. Reserves policy

The trustees undertake an annual review of reserves Including the nature of income and expenditure and the need to match income with commitments. The trustees have determined an appropriate level of reserves to cover capital expenditure and unexpected emergencies. The Trust's current level of free reserves is £1,680,292 (2013: £647,474). The trustees are aware of the academy trust's liability in relation to Local Government Pensions which showed a deficit of EZ 703,000 at 31 August 2014 (2013: £1,123,000). This Is being addressed by means of increased employer contributions.

d. Principal funding

Most of the Trust's income Is obtained from the EPA, the use of which is restricted to particular purposes. The income received from the EFA during the period ended 31 August 2014 and the associated expenditure are shown in the restricted funds in the Statement of Financial Activities.

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e. Investments policy

The Trust's investment policy is set out in its Financial Regulations and states that Investments must only be made in risk adverse ethical funds. There were no funds invested at 31 August 2014.

Plans for the future

a. Future developments

The Trust's vision is to create, develop and sustain an educational framework that offers open access, excellent learning, development and enrichment opportunities for all, in a wide variety of settings underpinned by high quality teaching and community engagement that will equip young people with the knowledge, skills and attributes to allow them to positively contribute to their future environment both socially and economically.

During the coming year the trustees will continue to oversee the delivery of continuous improvement in teaching and learning across both academies that will assure improved outcomes and results. This will Include the development and evaluation of new models and structures of provision which will facilitate differentiated and targeted delivery according to local need. The academies will continue to work at the heart of their communities with outreach and in-reach programmes that assure a value-added dimension demonstrating the unique cohesive power of a school. Investment In high quality delivery will continue in terms of ten staffing resources, with attention to the recruitment, retention and development activities as well as to the learning environment

In Newark, the trustees are looking forward to the opening of the new school building in 2016 and will be closely monitoring the build programme throughout 2015, whilst encouraging the Principal and senior leadership team to continue to use this transitional period to engage in an innovative and imaginative way with the local businesses to underpin the co-creation of a unique, vibrant, community based learning and resource hub.

In Gainsborough, the trustees welcome the opportunity to develop new models for the delivery of vocational skills based learning programmes In conjunction with a wide range of educational providers and the local business community as the Academy seeks to further differentiate provision according to the learners needs. Community and employer engagement programmes will continue apace.

Funds held as custodian

None.

Disclosure of information to auditor

Each of the persons who are trustees at the time when this Trustees' report is approved has confirmed that:

• so far as that trustee is aware, there is no relevant audit information of which the charitable company's auditor is unaware, and

• that trustee has taken all the steps that ought to have been taken as a trustee In order to be aware of any information needed by the charitable company's auditor in connection with preparing its report and to establish that the charitable company's auditor is aware of that information.

This report, incorporating the strategic report, was approved by order of the board of trustees, in their capacity as company directors, on 22 December 2014 and signed on its behalf by:

G Lee Chair of trustees

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GOVERNANCE STATEMENT

Scope of Responsibility

As trustees, we acknowledge we have overall responsibility for ensuring that Lincoln College Academy Trust has an effective and appropriate system of control, financial and otherwise. However such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives, and can provide only reasonable and not absolute assurance against material misstatement or loss.

The board of trustees has delegated the day-to-day responsibility to the Principal of The Newark Academy, 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 Lincoln College Academy Trust and the Secretary of State for Education. They are also responsible for reporting to the board of trustees any material weaknesses or breakdowns in internal control.

Governance

The information on governance Included here supplements that described in the trustees' report and in the trustees' responsibilities statement. The board of trustees has formally met 7 times during the year. Six of the meetings took place whilst a single academy trust with the final meeting of the year as a multi-academy trust. Attendance during the year at meetings of the board of trustees was as follows:

Trustee Meetings attended Out of a possible

J Allen 5 7 J Barrie 0 0 K Batty 7 7 N Bilton 5 6 P Doody 4 7 J Glasson 4 6 R Haftersley 4 6 G Headland 0 0 K Jasper 6 7 G Lee 1 1 A Muter 5 6 J Pinchbeck 4 7 R Repper 5 6 J Richardson 4 6 ID Rollin 3 6 E Rossall MBE 6 7 M Sema 6 7 V Simcock 1 1

The board of trustees as its meeting in March 2014 undertook a self-evaluation of its effectiveness as a board against twenty key questions a school governing body should ask itself as published by the All Party Parliamentary Group on Education Governance & Leadership and National Governors' Association.

The board of trustees at a special meeting on 22 May 2014 agreed to seek approval from its members to change its Articles of Association to become a multi-academy trust and to change its name from The Newark Academy Trust. This approved change on 1 June 2014 led to the joining of the trust by The Gainsborough Academy (formerly The Trent Valley Academy). The membership of the board of trustees changed on this date with a small group of trustees continuing on the new board, whilst the others became members of the board of the local governing bodies for each academy within the trust. The trustees have delegated the running of the academy with monitoring and accountability for standards, admissions and exclusions to the local boards although they have not delegated any powers that they are not permitted to do so under the Articles of Association, Charity or Company Law.

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GOVERNANCE STATEMENT (continued)

The Finance Committee is a sub committee of the main board of trustees. Its purpose is to assist the decision making of the trustees, by enabling more detailed consideration to be given to the best means of fulfilling the trustees responsibility to ensure sound management of the Trust's finances and resources, including proper planning, monitoring and probity. To make appropriate comments and recommendations on such matters to the trustees on a regular basis. This sub committee met 3 times during the year to 31 August 2014.

Attendance at meetings in the year was as follows:


J Allen 1 3 P Doody 3 3 K Jasper 2 3 J Pinchbeck 2 3 J Richardson 2 3 E Roassall 2 3 M Serna 1 3

The Audit Committee Is a sub committee of the main board of trustees. its purpose is to ensure that robust internal control exists within the trust by providing the primary Interface between the trustees and the external auditors and Responsible Officer, The Committee works closely with the Trust's Finance Services Provider on the preparation and finalisation of the Trust's Annual Report and Financial Statements and makes recommendations to the trustees for the acceptance, or otherwise, of such draft Financial Statements. The Audit Committee met 3 times during the year to 31 August 2014.

Attendance at meetings in the year was as follows:


N Bilton 3 3 J Glasson 3 3 R Hattersley 2 3 A Muter 3 3 D Rollin 2 3

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 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 Lincoln College Academy Trust for the year 1 September 2013 to 31 August 2014 and up to the date of approval of the annual report and financial statements.

Capacity to Handle Risk

The board of trustees has reviewed the key risks to which the Trust is exposed together with the operating, financial and compliance controls that have been implemented to mitigate those risks. The board of trustees is of the view that there is a formal ongoing process for identifying, evaluating and managing the Trust's significant risks, that has been in place for the year 1 September 2013 to 31 August 2014 and up to the date of approval of the annual report and financial statements. This process is regularly reviewed by the board of trustees.

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r - K Jasper Accounting Officer



GOVERNANCE STATEMENT (continued)

The Risk and Control Framework

The Trusts system of internal financial control Is based on a framework of regular management information and administrative procedures including the segregation of duties and a system of delegation and accountability. In particular, it Includes:

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

• regular reviews by the Finance 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, as Responsible Officer (SO).

The RO's role Includes giving advice on financial matters and performing a range of checks on the Trust's financial systems. On a quarterly basis, the SO 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 RO has delivered their schedule of work as planned with no material controls issues arising as a result of the work.

Review of Effectiveness

As Accounting Officer, the Principal of The Newark Academy 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 Responsible Officer; • the work of the external auditor; • the work of the executive managers within the Trust who have responsibility for the development and

maintenance of the internal control framework.

The Accounting Officer has been advised of the implications of the result of their review of the system of internal control by the Audit Committee and a plan to ensure continuous improvement of the system is in place.

Approved by order of the members of the board of trustees on 22 December 2014 and signed on their behalf, by:

G Lee Chair of Trustees

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• K Jasper Accounting Officer



STATEMENT ON REGULARITY, PROPRIETY AND COMPLIANCE

As Accounting Officer of Lincoln College Academy Trust I have considered my responsibility to notify the Trust board of trustees and the Education Funding Agency of material irregularity, impropriety and non-compliance with EFA terms and conditions of funding, under the funding agreement in place between the 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 Trust board of trustees are able to Identify any material, irregular or improper use of funds by the Trust, or material non-compliance with the terms and conditions of funding under the 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.

Date: 22 December 2014

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TRUSTEES' RESPONSIBILITIES STATEMENT

The trustees (who are also the directors of the Trust for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with the Annual Accounts Direction issued by the Education Funding Agency, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Trust and of its incoming resources and application of resources, including its Income and expenditure, for that period.

In preparing these financial statements the directors are required to:

• select suitable accounting policies and then apply them consistently; • observe the methods and principles In the Chadties 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 Trust will continue in business.

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Trust's transactions and disclose with reasonable accuracy at any time the financial position of the Trust and enable them to ensure that the financial statements comply with the Companies Act 2006 and the Academies Accounts Direction 2013. They are also responsible for safeguarding the assets of the Trust 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 Trust 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 Trust'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 board of trustees and signed on its behalf by:

G Lee , Trustee for and on behalf of the board of trustees Date: 22 December 2014

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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF LINCOLN COLLEGE ACADEMY TRUST

We have audited the financial statements of Lincoln College Academy Trust for the year ended 31 August 2014 which comprise the statement of financial activities, incorporating the income and expenditure account and statement of total recognised gains and losses, the balance sheet, the cash flow statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and the Academies Accounts Direction 2013 to 2014 Issued by the Education Funding Agency.

This report is made solely to the Trust's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the trustees, as a body, in accordance with the Academies Accounts Direction 2013 to 2014. Our audit work has been undertaken so that we might state to the Trust's members and trustees 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 Trust, the Trust's members as a body and the Trust's trustees as a body, for our audit work, for this report, or for the opinion we have formed.

Respective responsibilities of trustees and auditor

As explained more fully in the trustees' responsibilities statement, the trustees (who act as 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. We have been appointed as auditor under the Companies Act 2006 and report in accordance with that Act.

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

Scope of the audit of the financial statements

A description of the scope of an audit of financial statements is provided on the Financial Reporting Council's website at 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 Trust'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; and

• have been prepared in accordance with the requirements of the Companies Act 2006 and the Academies Accounts Direction 2013 to 2014 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 financial year for which the financial statements are prepared is consistent with the financial statements.

Page 16



INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF LINCOLN COLLEGE ACADEMY TRUST

Matters on which we are required to report by exception

We have nothing to report In respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate and proper accounting records have not been kept in respect of the Trust, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements do not accord with the accounting records; or

• certain disclosures of trustees remuneration specified by law are not made; or

• any information or explanation to which we are entitled has not been afforded to us

goo Craig Burton (senior statutory auditor) for and on behalf of BDO LLP, Statutory auditor Lincoln United Kingdom 23 December 2014

Page 17



INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO LINCOLN COLLEGE ACADEMY TRUST AND THE EDUCATION FUNDING AGENCY

In accordance with the terms of our engagement letter dated 25 November 2014 and further to the requirements of the Education Funding Agency (EFA) as included in the Academies Accounts Direction 2013, we have carried out an engagement to obtain limited assurance about whether the expenditure disbursed and income received by Lincoln College Academy Trust during the year 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 Lincoln College Academy Trust and the EFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to Lincoln College Academy Trust 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 Lincoln College Academy Trust and the EFA, for our work, for this report, or for the conclusion we have formed.

Respective responsibilities of Lincoln College Academy Trust's accounting officer and the reporting accountant

The accounting officer Is responsible, under the requirements of Lincoln College Academy Trust's funding agreement with the Secretary of State for Education dated 1 November 2012, and the Academies Financial Handbook extant from 1 September 2012, 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. We report to you whether anything has come to our attention in carrying out our work which suggests that In all material respects, expenditure disbursed and income received during the year 1 September 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 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 Trust's income and expenditure.

The work undertaken to draw our conclusion includes an assessment of the level of risk associated with the specific categories of Income and expenditure and the potential for irregularities to be identified. Our work is performed In accordance with Part 10 of the Academies Accounts Direction 2013 to 2014.

Page 18

INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON REGULARITY TO LINCOLN COLLEGE ACADEMY TRUST AND THE EDUCATION FUNDING AGENCY (continued)

Conclusion

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

too Craig Burton BDO LLP Reporting Accountant Lincoln United Kingdom

23 December 2014

Page 19

LINCOLN COLLEGE ACADEMY TRUST (A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (incorporating income and expenditure account and statement of recognised gains and losses)

FOR THE YEAR ENDED 31 AUGUST 2014

Note

Unrestricted funds 2014

E

Restricted funds 2014

E

Restricted fixed asset

funds 2014

E

Total funds 2014

E

Total funds 2013

£

INCOMING RESOURCES Incoming resources from

generated funds: Transfer of assets/(Iiabilities) 2 1,186,715 (454,883) 21,384,287 22,116,119 7,269,793 Other voluntary income 2 25,282 59,979 - 85,261 87,143 Activities for generating funds 3 55,490 55,490 40,161 Investment income 4 27 27 22

Incoming resources from charitable activities 5 - 6,630,963 6,630,963 4,743,507

TOTAL INCOMING RESOURCES 1,267,514 6,236,059 21,384,287 28,887,860 12,140,626

RESOURCES EXPENDED Costs of generating funds:

Activities for generating funds 3 27,874 - 27,874 13,629 Charitable activities 15,531 6,341,472 2,069,619 8,426,622 5,826,417 Governance costs 6 _ 15,668 15,668 10,977

TOTAL RESOURCES EXPENDED 8 43,405 6,357,140 2,069,619 8,470,164 5851,023

NET INCOMING RESOURCES I (RESOURCES EXPENDED) BEFORE TRANSFERS 1,224,109 (121,081) 19,314,668 20,417,696 6,289,603

Transfers between Funds 20 (191,291) 191,291

NET INCOME FOR THE YEAR 1,032,818 (121,081) 19,505,959 20,417,696 6,289,603

Actuarial gains and losses on defined benefit pension schemes (739,000) (739,000) (284,000)

NET MOVEMENT IN FUNDS FOR THE YEAR 1,032,818 (860,081) 19,505,959 19,678,696 6,005,603

Total funds at 1 September 2013 647,474 (677,852) 6,035,981 6,005,603

TOTAL FUNDS AT 31 AUGUST 2014 1,680,292 (1,537,933) 25,541,940 25,684,299 6,005,603

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 41 form part of these financial statements.

Page 20


(A company limited by guarantee) REGISTERED NUMBER: 08238194

BALANCE SHEET AS AT 31 AUGUST 2014

2014 2013 Note E E

FIXED ASSETS

Tangible assets 15 25,541,940 6,035,981

CURRENT ASSETS

Debtors 16 2,078,272 309,954

Cash at bank and in hand 1,981,019 1,466,931

4,059,291 1,776,885

CREDITORS: amounts falling due within one year 17 (970,324) (684,263)

NET CURRENT ASSETS 3,088,967 1,092,622

TOTAL ASSETS LESS CURRENT LIABILITIES 28,630,907 7,128,603

CREDITORS: amounts falling due after more than one year 18 (20,000)

PROVISIONS FOR LIABILITIES

Other provisions 19 (223,608)

NET ASSETS EXCLUDING PENSION SCHEME LIABILITIES 28,387,299 7,128,603

Defined benefit pension scheme liability 25 (2,703,000) (1,123,000)

NET ASSETS INCLUDING PENSION SCHEME LIABILITIES 25,684,299 6,005,603

FUNDS OF THE TRUST

Restricted funds;

Restricted funds 20 1,165,067 445,148 Restricted fixed asset funds 20 25,541,940 6,035,981

Restricted funds excluding pension liability 26,707,007 6,481,129

Pension reserve (2,703,000) (1,123,000)

Total restricted funds 24,004,007 5,358,129

Unrestricted funds 20 1,680,292 647,474

TOTAL FUNDS 25,684,299 6,005,603

The financial statements were approved by the trustees, and authorised for issue, on 22 December 2014 and are si ned on their behalf, by:

G Lee K Jasper Chair of Trustees Trustee

The notes on pages 23 to 41 form part of these financial statements.

Page 21



CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2014

Note 2014 2013

Net cash flow from operating activities 22 705,352 70,890 Returns on investments and servicing of finance 23 27 22 Capital expenditure and financial investment 23 (191,291) (25,429)

INCREASE IN CASH IN THE YEAR 514,088 45,483

RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS FOR THE YEAR ENDED 31 AUGUST 2014

2014 2013

Increase In cash in the year 514,088 46,483

MOVEMENT IN NET FUNDS IN THE YEAR 514,088 45,483 Net funds at 1 September 2013 1,466,931 1,421,448

NET FUNDS AT 31 AUGUST 2014 1,981,019 1,466,931

The notes on pages 23 to 41 torn part of these financial statements.

Page 22



NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2014

1. ACCOUNTING POLICIES

1.1 Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value. The financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP), 'Accounting and Reporting by Charities' published in March 2005, the Academies Accounts Direction 2013 issued by the 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 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 Department for Education 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 Department 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 Trust has entitlement to the funds, certainty of receipt and the amount can be measured with sufficient reliability.

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.

General Annual Grant is recognised in full in the year for which it is receivable and any unspent amount 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 on which they are expended. Unspent amounts of capital grant are reflected In the balance In the restricted fixed asset fund.

Donations are recognised on a receivable basis where there Is certainty of receipt and the amount can be reliably measured.

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

Page 23




1. ACCOUNTING POLICIES (continued)

1.4 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 are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

Charitable activities are costs Incurred In the Trust's educational operations.

Governance costs Include the costs attributable to the Trust's compliance with constitutional and statutory requirements, including audit, strategic management and trustees' meetings and reimbursed 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 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 trustees make this assessment In respect of a period 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 the government or from the private sector, they are included in the balance sheet at cost and depreciated over their expected useful economic life. The related grants are credited to a restricted fixed 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 of financial activities so as to reduce the fund over the useful economic life of the related asset on a basis consistent with the Trust's depreciation policy.

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

UTerm Leasehold at The Newark - Academy

LiTerm Leasehold at The Gainsborough Academy

Fixtures and fittings Office equipment Computer equipment

33% straight line

2% straight line

20% straight line 25% straight line 33% straight line

The UTerm Leasehold Property at The Newark Academy relates to the school buildings. There is currently a plan in place to replace the existing school buildings which is expected to culminate In the demolition of these buildings. The timescale for this is estimated to be 3 years, hence a policy of 33% straight line has been applied to the buildings.

Page 24




1. ACCOUNTING POLICIES (continued)

13 Operating leases

Rentals under operating leases are charged to the statement of financial activities on a straight line basis over the lease term.

1.8 Taxation

The 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.

1.9 Pensions

Retirement benefits to employees of the Trust are provided by the Teachers' Pension Scheme ("TPS") and the Local Government Pension Scheme ("LGPS"). These are defined benefit schemes, are contracted out of the State Earnings-Related Pension Scheme ("SERF'S"), 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. As stated in note 25, the TPS is a mufil-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 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 benefits have vested. If the benefits have not vested immediately, the costs are recognised over the period 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.

Page 25




2. VOLUNTARY INCOME


6


e

Total funds 2014

e

Total funds 2013

£ Transfer on surplus/(deficit) 1,186,715 462,726 1,649,441 609,252 Transfer of fixed assets 21,384,286 21,384,286 7,432,000 Transfer of pension scheme liability (694,000) (694,000) (796,000) Transfer of other assets/(liabilities) (223,608) (223,608) 24,541

Subtotal detailed disclosure 1,186,715 20,929,404 22,116,119 7,269,793

Donations 25,282 59,979 85,261 87,143

Voluntary income 1,211,997 20,989,383 22,201,380 7,356,936

The transfers in the year detailed above, totalling £22,116,119, relate to the inclusion of The Gainsborough Academy to Lincoln College Academy Trust to form a multi-academy trust.

3. TRADING ACTIVITIES


Total funds 2014

Total funds 2013

Charity trading income

Lettings income 43,893 43,893 38,833 Catering Income 11,597 11,597 1,328

55,490 55,490 40,161

Charity trading expenses

Lettings expenditure 14,874 14,874 13,629 Catering expenditure 13,000 13,000

27,874 27,874 13,629

Net income from trading activities 27,616 27,616 26,532

4. INVESTMENT INCOME

Unrestricted Restricted Total Total funds funds funds funds 2014 2014 2014 2013

Bank interest 27 27 22

Page 26




5. FUNDING FOR TRUSTS EDUCATIONAL OPERATIONS


e

Total funds 2014

6

Total funds 2013

£

DfEiEFA grants

General Annual Grant (GAG) 5,713,824 5,713,824 4,064,222 Other DfEJEFA Grants 214,464 214,464 92,689 Start Up Grants 135,094 135,094 268,762 Pupil Premium 287,441 287,441 136,267

6,350,823 6,350,823 4,561,940

Other government grants

Local Authority Grants 268,375 268,375 132,338

268,375 268,375 132,338

Other funding

SEN Grants 11,765 11,765 49,229

11,765 11,765 49,229

6,630,963 6,630,963 4,743,507

6. GOVERNANCE COSTS

Restricted Total Total funds funds funds 2014 2014 2013

6 6 £

Auditor's remuneration 15,668 15,668 10,977

Page 27



7, CHARITABLE ACTIVITIES - TRUST'S EDUCATIONAL OPERATIONS


£

Total funds 2014

£

Total funds 2013

£ DIRECT COSTS

Wages and salaries 3,207,184 3,207,184 2,268,014 National insurance 251,246 251,246 167,383 Pension cost 604,263 604,263 351,236 Pension Income 34,000 34,000 30,000 Technology costs 36,617 36,617 58,985 Educational supplies 111,227 111,227 157 823 Examination fees 93,380 93,380 76,704 Staff development 38,159 38,159 18,566 Other direct costs 614,884 614,884 304,942

4,990,960 4,990,960 3,433,653

SUPPORT COSTS

Wages and salaries 654,209 654,209 392,832 Depreciation 2,069,619 2,069,619 1,421,448 Recruitment and support 16,588 16,588 8,590 Maintenance of premises and equipment 103,844 103,844 47,432 Cleaning 21,238 21,238 16,237 Rent and rates 94,260 94,260 54,275 Energy costs 173,993 173,993 162,315 Insurance 99,593 99,593 72,864 Security and transport 62,630 62,630 45,606 Catering 33,299 33,299 32,822 Bank Interest and charges 1,450 1,450 616 Other support costs 104,939 104,939 137,727

3,435,662 3,435,662 2,392,764

8,426,622 8,426,622 5,826,417

Page 28




8. ANALYSIS OF RESOURCES EXPENDED BY EXPENDITURE TYPE

Staff costs Other costs Total Total 2014 2014 2014 2013

E

Fundraising expenses 14,874 13,000 27,874 13,629

Costs of generating funds 14,874 13,000 27,874 13,629

Funding for the Trusts educational operations - Direct costs 4,062,693 928,267 4,990,960 3,433,653

Funding for the Trust's educational operations - Support costs 654,209 2,781,453 3,435,662 2,392,764

Charitable activities 4,716,902 3,709,720 8,426,622 5,826,417

Governance 15,668 15,668 10,977

4,731,776 3,738,388 8,470,164 5,851,023

9. NET INCOMING RESOURCES ((RESOURCES EXPENDED)

This is stated after charging:

2014 2013

Depreciation of tangible fixed assets: - owned by the charity 2,069,619 1,421,448

Auditor's remuneration 15,668 10,977

Page 29




10. STAFF COSTS

Staff costs were as follows:

2014 2013 £ £

Wages and salaries 3,876,268 2,674,475 Social security costs 251,246 167,383 Other pension costs (Note 25) 604,263 351,236

4,731,777 3,193,094 Compensation payments 81,648

4,813,425 3,193,094

The average number of persons (including the senior management team) employed by the Trust during the year expressed as full time equivalents was as follows:

2014 No.

2013 No.

Teachers 59 48 Administration and support 85 44 Management 9 6

153 98

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

2014 2013 No. No.

In the band £60,001 - £70,000 1 1 In the band £70,001 -£80,000 1 1

2 2

The above employees participated in the Teachers' Pension Scheme. During the year ended 31 August 2014, pension contributions for these staff amounted to £19,726 (period ended 31 August 2013 - £18,583).

11. CENTRAL SERVICES

No central services were provided by the Trust to Its academies during the year and no central charges arose.

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12. TRUSTEES' REMUNERATION AND EXPENSES

During the year retirement benefits were accruing to no trustees (2013 - 3) in respect of defined contribution pension schemes.

The Principal and other staff trustees only receive remuneration In respect of services they provide undertaking the roles of Principal and staff, and not in respect of their services as trustees. Other trustees did not receive any payments, other than expenses, from the Academy in respect of their role as trustees. The value of trustees' remuneration fell within the following bands:

2014 2013

Karine Jasper, Principal 75,000-80,000 55,000-60,000 Debra Rollin, Staff governor 20,000-25,000 25,000-30,000 Janet Glasson, Staff governor 10,000-15,000 10,000-15,000

During the year, no trustees received any reimbursement of expenses (2013- £NIL).

The amounts detailed above represents remuneration in respect of trustees for the time they were appointed in their role as trustees.

13. TRUSTEES' AND OFFICERS' INSURANCE

In accordance with normal commercial practice the Trust has purchased insurance to protect trustees and officers from claims arising from negligent acts, errors or omissions occurring whilst on academy business. The insurance provides cover up to £5,000,000 on any one claim and the cost for the year ended 31 August 2014 was £846 (2013 -£846).

The cost of this insurance is included in the total insurance cost.

14. NET INTEREST ON PENSION SCHEME LIABILITY

2014 2013

Expected return on pension scheme assets 266,000 33,000 Interest on pension scheme liabilities (292,000) (63,000)

(26,000) (30,000)

Page 31



15. TANGIBLE FIXED ASSETS

L/Term Leasehold Fixtures

Property and fittings E

Cost

All September

Office Computer

equipment equipment E

Total E

2013 7,432,000 - 25,429 7,457,429 Additions 55,298 16,485 119,508 191,291 On Transfer from E-

ACT 21,270,112 99,146 15,029 21,384,287

At 31 August 2014 28,702,112 154,444 16,485 159,966 29,033,007

Depreciation At 1 September

2013 1,415,800 5,648 1,421,448 Charge for the year 2,000,275 50,958 18,386 2,069,619

At 31 August 2014 3,416,075 50,958 24,034 3,491,067

Net book value At 31 August 2014 25,286,037 103,486 16,485 135,932 25,541,940

A131 August 2013 6,016,200 19,781 6,035,981

Included In UTerm Leasehold Property is land of £353,000 which is not depreciated.

16. DEBTORS

2014 2013 E E

Trade debtors 1,746,367 144,402 Other debtors 143,903 104,402 Prepayments and accrued income 188,002 61,150

2,078,272 309,954

Page 32




17. CREDITORS: Amounts falling due within one year

2014 2013

Trade creditors 472,431 238,148 Other taxation and social security 124,681 59,759 Other creditors 168,726 85,048 Accruals and deferred income 204,486 301,308

970,324 684,263

At the balance sheet date the Trust was holding funds received in advance in relation to Grant funding for the 2014115 academic year.

Deferred income

Deferred income at 1 September 2013 72,921 Resources deferred during the year 119,566 Amounts released from previous years (72,921)

Deferred income at 31 August 2014 119,566

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

2014 2013

Other creditors 20,000

19. PROVISIONS

Pension Provision

Additions 223,608

At 31 August 2014 223,608

Pension Provision

The pension provision relates an agreed funding of a deficit in the pension fund for a number of retired employees, which The Gainsborough Academy has to fund.

Page 33




20. STATEMENT OF FUNDS

Unrestricted funds

Other general

Brought Forward

Incoming resources

Resources Expended

Transfers in/out

Gains/ (Losses)

Carried Forward

funds 647,474 1,267,514 (43,405) (191,291) 1,680,292

Restricted funds

General Annual Grant (GAG) 300,537 5,880,941 (5,465,421) 716,057

Other DfE/EFA grants 26,564 214,464 (169,150) 71,878

Pupil premium 29,454 287,441 (278,801) 38,094 Start up grant 25,420 135,094 (68,855) 91,659 SEN grant - 11,765 (11,765) Other grants 35,123 340,374 (154,515) 220,982 School funds 23,618 59,980 (61,633) 21,965 Educational visits 4,432 - - 4,432 Pension reserve (1,123,000) (694,000) (147,000) (739,000) (2,703,000)

(677,852) 6,236,059 (6,357,140) (739,000) (1,537,933)

Restricted fixed asset funds

Restricted Fixed Asset Fund 6,035,981 21,384,287 (2,069,619) 191,291 - 25,541,940

Total restricted funds 5,358,129 27,620,346 (8,426,759) 191,291 (739,000) 24,004,007

Total of funds 6,005,603 28,887,860 (8,470,164) (739,000) 25,684299

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

General Annual Grant (GAG) Funds from the Education Funding Agency for the provision of education in line with the funding agreement.

Other DfEIEFA grants Other funds provided by the DfE/EFA for particular purposes within the Trust's educational operations.

Pupil premium Funds received for the purposes of providing additional support to pupils who receive free school meals.

Start up grant Funds received for use on costs related to setting up the Trust.

SEN grant Funds received specifically for use on pupils with special educational needs.

Page 34




20. STATEMENT OF FUNDS (continued)

Other grants Fees received for the payment of exam re-sits.

School funds Funds generated in relation to specific fundraising projects, charity projects and locker deposits.

Educational visits Funds generated from students for use on specific educations trips.

Pension reserve Being the fund in relation to the defined benefit pension scheme liability included in the balance sheet. This fund is in deficit given the nature of the liability, however this is not payable Immediately.

Transfer Relates to the transfer of fixed asset additions which have been purchased from unrestricted funds, to Include them into the restricted fixed assets fund.

Under the funding agreement with the Secretary of State, the Trust was not subject to a limit on the amount of GAG that it could carry forward at 31 August 2014.

ANALYSIS OF ACADEMIES BY FUND BALANCE

Fund balances at 31 August 2014 were allocated as follows:

Total

The Newark Academy 1,505,152 The Gainsborough Academy 1,340,207

Total before fixed asset fund and pension reserve 2,845,359

Restricted fixed asset fund 25,541,940 Pension reserve (2,703,000)

Total

25,684,299

ANALYSIS OF ACADEMIES BY COST

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

Teaching and

educational Other

support support Educational

staff costs staff costs supplies

The Newark Academy 3,053,816 503,909

87,797 The Gainshorough Academy 903,101 165,174

23,355

3,956,917 669,083 111,152

Other costs excluding depreciatio

Total

1,080,184 4,725,706

531,486 1,623,116

1,611,670 6,348,822

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21, ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestricted Restricted

funds funds

Restricted

fixed asset Total

funds funds Total funds

2014 2014 2014 2014 2013 E E E E 5

Tangible fixed assets . - 25,541,940 25,541,940 6,035,981 Current assets 1,680,292 2,378,998 - 4,059,290 1,776,885 Creditors due within one year (970,323) - (970,323) (684,263) Creditors due in more than one

year - (20,000) (20,000) Provisions for liabilities and

charges - (2,926,608) (2,926,608) (1,123,000)

1,680,292 (1,537,933) 25,541,940 25,684,299 6,005,603

22. NET CASH FLOW FROM OPERATING ACTIVITIES

2014 2013 5

Net incoming resources before revaluations 20,417,696 6,289,603 Returns on investments and servicing of finance (27) (22) Exceptional items - transfers (20,466,679) (7,269,793) Depreciation of tangible fixed assets 2,069,619 (Increase)/decrease in debtors (1,768,318) 323,839 Increase in creditors 306,061 684,263 FRS 17 adjustments 147,000 43,000

Net cash inflow from operations 705,352 70,890

23. ANALYSIS OF CASH FLOWS FOR HEADINGS NETTED IN CASH PLOW STATEMENT

2014 2013

Returns on investments and servicing of finance

Interest received 27 22

2014 2013 E

Capital expenditure and financial investment

Purchase of tangible fixed assets (191,291) (25,429)

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24. ANALYSIS OF CHANGES IN NET FUNDS

1 September Cash flow

Other non-cash changes 31 August

2013 2014 £ £ £ £

Cash at bank and in hand: 1,466,931 514,088 1,981,019

Net funds 1,466,931 514,088 1,981,019

25. PENSION COMMITMENTS

The Trust's employees belong to two principal pension schemes: the Teacher's Pension Scheme for England and Wales (TPS) for academic and related staff; and the Local Government Pension Scheme (LGPS) for non-teaching staff, which is managed by Barnett Waddingham for teachers at The Newark Academy and Hymens Robertson LLP for teachers at The Gainsborough Academy. 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 related to the period ended 31 March 2004 and of the LGPS 31 March 2010.

Contributions amounting to £112,518 were payable to the scheme at 31 August 2014 (2013 -£51,073) and are included within creditors.

Teachers' Pension Scheme

Introduction

The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers Pensions Regulations (2010). These regulations apply to teachers in schools that are maintained by local authorities and other educational establishments, including academies, in England and Wales In addition teachers In many independent and voluntary-aided schools and teachers and lecturers in some establishments of further and higher education may be eligible for membership. Membership is automatic for full-time teachers and lecturers and from 1 January 2007 automatic too for teachers and lecturers in part-time employment following appointment or a change of contract. Teachers and lecturers are able to opt out of the TPS.

The Teachers' Pension Budgeting and Valuation Account

Although members may be employed by various bodies, their retirement and other pension benefits are set out in regulations made under the Superannuation Act (1972) and are paid by public funds provided by Parliament. The TPS is an unfunded scheme and members contribute on a "pay as you go" basis these contributions along with those made by employers are credited to the Exchequer under arrangements governed by the above Act.

The Teachers' Pensions Regulations require an annual account, the Teachers' Pension Budgeting and Valuation 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 real rate of return, which Is equivalent to assuming that the balance in the Account Is Invested in notional investments that produce that real rate of return.

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25. PENSION COMMITMENTS (continued)

Valuation of the Teachers' Pension Scheme

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

• employer contribution rates set at 1648% of pensionable pay (including a 0.08% employer administration charge (currently 14.1%);

• total scheme liabilities for service to the effective date of 8191,500 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 TPS from September 2015.

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

Teachers' Pension Scheme Changes

Lord Hutton published his final report in March 2011 and made recommendations about how pensions can be made sustainable and affordable, whilst remaining fair to the workforce and the taxpayer. The Government accepted Lord Hutton's recommendations as the basis for consultation and Ministers engaged in extensive discussions with trade unions and other representative bodies on reform of the TPS. Those discussions concluded on 9 March 2012 and the Department published a Proposed Final Agreement selling out the design for a reformed TPS to be implemented from 1 April 2015.

The key provisions of the reformed scheme include: a pension based on career average earnings; an accrual rate of 1/57th ; and a Normal Pension Age equal to State Pension Age, but with options to enable members to retire earlier or later than their Normal Pension Age. Importantly, pension benefits built up before 1 April 2015 will be fully protected.

In addition, the Proposed Final Agreement Includes a Government commitment that those within 10 years of Normal Pension Age on 1 April 2012 will see no change to the age at which they can retire, and no decrease in the amount of pension they receive when they retire. There will also be further transitional protection, tapered over a three and a half year period, for people who would fall just outside of the 10 year protection.

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

Under the definitions set out in Financial Reporting Standard (FRS 17) Retirement Benefits, the TPS is a multi-employer pension scheme. The Trust is unable to identify its share of the underlying assets and liabilities of the scheme. Accordingly, the Trust has taken advantage of the exemption In FRS 17 and has accounted for its contributions to the scheme as if it were a defined contribution scheme. The Trust has set out above the Information available on the scheme.

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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 2014 was £430,000, of which employer's contributions totalled £323,000 and employees' contributions totalled £107,000. The agreed contribution rates for future years are 15.7% for employers and 5.7% for employees.

Parliament has agreed, at the request of the Secretary of State for Education, to a guarantee that, in the event of academy closure, outstanding local government pension scheme liabilities would be met by the Department for Education. The guarantee came into force on 18 July 2013.

The amounts recognised In the balance sheet are as follows:

2014 2013 £

Present value of funded obligations (7,702,000) (2,095,000) Fair value of scheme assets 4,999,000 973,000

Net liability (2,703,000) (1,123,000)

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

2014 2013 £ £

Current service cost (436,000) (125,000) Interest on obligation (292,000) (63,000) Expected return on scheme assets 266,000 33,000

Total (462,000) (155,000)

Actual return on scheme assets 517,000 92,000

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

2014 2013

Opening defined benefit obligation 2,096,000 1,529,000 Current service cost 436,000 125,000 Interest cost 292,000 63,000 Contributions by scheme participants 107,000 36,000 Actuarial Losses 867,000 343,000 Losses on curtailments 8,900 Benefits paid (95,000) Gainsborough defined benefit obligation 3,991,000

Closing defined benefit obligation 7,702,000 2,096,000

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25.




PENSION COMMITMENTS (continued)

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

2014 2013 £ £

Opening fair value of scheme assets 973,000 733,000 Expected return on assets 266,000 33,000 Actuarial gains and (losses) 128,000 59,000 Contributions by employer 323,000 112,000 Contributions by employees 107,000 36,000 Benefits paid (95,000) - Gainsborough fair value of scheme assets 3,297,000 -

4,999,000 973,000

The cumulative amount of actuarial gains and losses recognised in the statement of total recognised gains and losses was £739,000 (2013 -£284,000).

The Trust expects to contribute £357,000 to its defined benefit pension scheme in 2015.

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

2014 2013 Equities 75,00% 71.00 % Gifts 1.00 % 9.00 % Bonds 11.00 % 4.00 % Property 11.00 % 12.00 % Cash 1.00 % 2.00 % Other - % 2.00 %

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

2014 2013 Discount rate for scheme liabilities 3.90 % 4.70 % Expected return on scheme assets at 31 August 5.80 % 5.70 % Rate of increase In salaries 4.50 % 5.10% Rate of increase for pensions In payment / inflation 2.70 % 2.90 % Inflation assumption (CPI) 2.70 % 2.90 %

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

2014 2013 Retiring today Males 22.0 years 18.7 years Females 25.1 years 22.8 years

Retiring in 20 years Males 24.1 years 20.7 years Females 27.4 years 24.6 years

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Amounts for the current and previous period are as follows:

Defined benefit pension schemes

2014 2013

Defined benefit obligation (7,702,000) (2,096,000) Scheme assets 4,999,000 973,000

Deficit (2,703,000) (1,123,000)

Experience adjustments on scheme liabilities (867,000) (343,000) Experience adjustments on scheme assets 128,000 59,000

26. OPERATING LEASE COMMITMENTS

At 31 August 2014 the Trust had annual commitments under non-cancellable operating leases as follows:

2014 2013

Expiry date:

Within 1 year 4,217

27. RELATED PARTY TRANSACTIONS

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

Lincoln College is the Trust's sole sponsor and member. Some trustees of the Trust are also Governors of Lincoln College. During the period Lincoln College provided a range of strategic corporate resources, Including Finance, Human Resources and Payroll and IT Consultancy at arms-length and not for any profit. The value of these services was £125,000 (2013 -£125,000).

28. CONTROLLING PARTY

By virtue of its control of the board of trustees and in its capacity as sponsor, in the opinion of the trustees, Lincoln College is the Trusts ultimate controlling party.

29. MEMBERS' LIABILITY

Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up while he/she is a member, or within one year after he/she ceases to be a member, such amount as may be required, not exceeding £10 for the debts and liabilities contracted before he/she ceases to be a member.

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2014 Lincoln College Academy Trust Final Accounts...K Batty (resigned 16 December 2014) N Bilton...

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