The trustees present their annual report together with the accounts and auditor's report of the charitable company for the year 1 September 2019 to 31 August 2020. The annual report serves the purposes of both a trustees' report, and a directors' report under company law.
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 Hampton Academies Trust are also the directors of the charitable company for the purposes of company law. Details of the trustees who served during the year, and to the date these accounts are approved, are included in the Reference and Administrative Details on page 1.
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.
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 whilst on academy business. The insurance provides cover up to £2,000,000.
The management of the trust is the responsibility of the trustees who are elected and co-opted under the terms of the Articles of Association.
The training and induction provided for new Trustees is dependent upon their existing experience; an induction pack is given to all Trustees. During the period, the Trust has subscribed to the Governing Training Programme provided by the local authority, Specialist Schools Academies Trust and The Key for School Governors. All Trustees are provided with copies of policies, procedures, minutes, accounts, budgets, plans and any other documents that they will need to undertake their role as Trustees.
The Trust has established a management structure to enable its efficient running. The structure consists of four levels: Members, Trustees and then at individual school level - local Governors and the Senior Leadership Team.
Based around an agreed scheme of delegation for the Trust, it was considered and decided that Members would approve the strategic direction and objectives of the Trust, Trustees would ensure operational alignment with the trust strategy as well as manage financial and personnel oversight and that delegated responsibility to local governing bodies would be to monitor progress of standards outcomes and broader school objectives.
The Trust has established a secure financial management structure including the scheme of delegation, robust internal control procedures and terms of reference for the all Trust and Local Governing Body committees.
Trustees and Governors are responsible for setting general policy, adopting an annual budget plan, monitoring the Trust’s expenditure and income and making major decisions (alongside the Members strategic plan) about the direction of the academy including capital expenditure and the appointment of senior staff.
The Executive Headteacher is the academy’s Accounting Officer and has responsibility for the Trust’s overall management and staffing. The Executive Headteacher is responsible for ensuring compliance with the Academies Financial Handbook, the Trust’s Funding Agreement and all relevant aspects of company and charitable law. The delivery of the Trust’s detailed accounting functions are delegated to the Director of Finance and Resources.
The pay and remuneration for all key personnel is determined and approved by the trustees and reviewed on an annual basis. All key personnel who are teaching staff are employed under the terms and conditions of the School Teachers' Pay and Conditions Document (STPCD). Salary pay ranges are determined following the guidance in the STPCD and included within the staffing structure which is reviewed annually. Incremental progression for key personnel on their individual pay ranges for their role is determined and agreed through the annual performance appraisal scheme which all teaching staff are subject to.
The pay and remuneration for non-teaching key personnel who are not employed on the STPCD is determined and approved by the trustees. Job roles are externally evaluated by the trust's HR advisors and also benchmarked against other similar roles both locally and nationally before an appropriate pay scale is agreed. Key personnel who are non-teaching staff must also complete a successful performance review for an incremental pay progression or other remuneration to be awarded.
The trust regularly engage with all employees to provide them with information on matters which concern them. Where appropriate, the staff are consulted, both formally and informally to assist with decision making. Staff are also provided with regular updates on individual school performance.
The trust has an Equality and Diversity Policy which sets out the trust’s commitment to promote equal opportunity for all staff and job applicants. The trust aim to create a supportive and inclusive working environment in which all individuals are able to make the best use of their skills, free from discrimination or harassment, and is which all decisions are based on merit.
The trust has due regard to foster good relationships with business suppliers and customers. Where possible, there is open and regular engagement with suppliers and customers to ensure effective and transparent business interaction.
The trust is not part of any connected organisations. Details of related party transactions are disclosed in note 25 to the financial statements.
The aim of the Hampton Academies Trust is to provide a broad and balanced education to children and young people in our locality. We aspire to high standards of attainment and progress, aiming to contribute to the raising of educational standards in the Greater Peterborough area.
Members, Trustees, Governors and school leaders have considered what we really value in education, which is summed up in our motto: progress, partnership, pride.
Progress
We will work hard to ensure that students receive excellent teaching, that the curriculum is relevant to their needs and that they receive all the support they need to fulfil their potential. We also believe very strongly in the importance of extra-curricular activities such as clubs and visits, as they develop values and qualities that are valuable in later life.
Partnership
We are determined that Hampton Academies Trust will continue to be known for its positive relationships: students work well with each other, and they enjoy good working relationships with staff, with a high level of mutual respect. The Trust aims to develop strong relationships with its community, including other primary schools, neighbouring secondary schools, and local businesses.
We work hard to establish a partnership with parents/carers, and to ensure that they feel welcome at the Trust, and fully involved in their child's education.
Pride
We expect the highest standards at all times. We want students to be proud of their own achievements and happy to receive awards from us, sometimes in public gatherings. We expect students to wear the Hampton Academies Trust uniform with pride because we want them to show that being a Hampton Academies Trust student is something really special. Over the next year, and as the Trust moves forward, we hope that parents/carers, and the whole community, will be really proud of the work that goes on here.
Vision and Values
Our vision as a Trust is to meet the needs of our students and equip them to fulfil their potential.
1. We Value People:
• Our schools will be welcoming places, at the heart of its community, valuing all people and their talents,
beliefs and cultures equally;
• Students will feel safe and respected as individuals at school; they will feel happy to come to HAT
schools to learn;
• All staff will feel valued, informed and involved in decision making;
• Parents and carers will feel well informed, and involved in their child’s education.
• We recognise families as sources of love and care for their members, and as the basis of a society in
which people care for others.
2. We value learning:
• HAT schools will provide for high quality teaching and learning, involving challenging and enjoyable
activities; this will enable our students to think, and to produce high quality work;
• Our curriculum will cater for a wide range of ability and talent, and will provide students with a broad,
general education of the highest quality. We will provide an outstanding choice of extracurricular
activities.
3. We value positive behaviour:
• HAT schools will have a positive ethos, which emphasises respect, responsibility and participation;
• Students will be encouraged to grow spiritually, morally, socially and culturally;
• We will place a high emphasis on maintaining positive relationships with students based on honesty
and fairness;
• We will expect all members of the HAT school community to act with courtesy, respect and good
manners;
• We will emphasise the pleasure in learning, and we will do our best to make sure that fun is part of the
experience for all at HAT schools.
4. We value health:
• HAT schools will promote the importance of healthy living, and we will emphasise its impact on
learning;
• In all areas of operation, HAT will stress the importance of healthy eating; students will be encouraged
to drink water in most classes;
• The sites are no-smoking areas at all times;
• We believe that the health and safety of students, staff and visitors are of paramount importance, and
they will always be our first consideration;
• We will work with students, parents/carers and relevant external agencies to promote safe travel to and
from school;
• In the interest of safety, students will receive clear messages about items that should not be brought
onto HAT premises, or on school visits.
5. We value leadership:
• HAT schools will be well governed, managed and led, having excellent relationships with other schools
and agencies. Resources will be used effectively to support learning;
• Students will be offered opportunities to show responsibility, and to develop leadership skills.
6. We value our community:
• HAT schools will emphasise the opportunities and responsibilities that life in a large community can
bring;
• We will make our facilities available to members of our community for learning and for leisure;
• HAT schools will enhance community life;
• Students will be made aware of the positive roles they can play in our global community;
• Students will learn to respect religious and cultural diversity.
7. We value our environment:
• We will provide an outstanding learning environment: stimulating, colourful and well cared for;
• Students will learn to respect their environment at a local, national and international level.
8. We value the future:
• We will develop the next generation of citizens and leaders, willing and able to play active roles in their
communities;
• We will lead out into the world young people who feel positive about themselves and demonstrate a
passion for life, who respect the rights of other people and who are ready to make their mark.
Our strategies and key objectives are detailed in two key documents: the Strategic Plan and Development Plan. These plans are reviewed annually to assess and measure impact and progress of all key objectives and to set future targets to ensure the best outcomes for our students.
In setting our objectives and planning our activities, the trustees have carefully considered the Charity Commission’s general guidance on public benefit.
Review of activities including key performance indicators:
Hampton College currently has 1,598 students on roll. There are 415 children in the Primary Phase, 1,183 in the Secondary Phase and 177 Post-16 students.
Hampton Gardens school opened September 2017. There are currently 798 students on roll in years 7-10 and 56 Post-16 students. The school will grow a year group at a time until it reaches capacity (1,200 y7-11 and 300 Post-16).
Hampton Lakes Primary School opened as a new Free School on 1 September 2019 with 27 children in Reception class. During it’s opening year, Hampton Lakes operated from temporary accommodation in the Hampton College Primary Phase building. The new Hampton Lakes school building is due to be handed over to the trust at the end of September 2020.
Hampton College was last inspected by OFSTED in May 2017. The Overall Effectiveness of the College was judged to be ‘Good.’ All areas of the College’s provision (Achievement, Quality of Teaching, Leadership and Management, Behaviour and Safety of Students) were judged to be ‘Good.’
The inspection report identified many positive aspects of the College including:
• The leadership team has maintained the good quality of education in the school since the previous
inspection.
• Since the previous inspection, pupils have usually made good progress by the end of key stage 4.
• Parents and pupils are very positive about the quality of education provided in the primary phase of the
school.
• Inspection evidence indicates that pupils who have special educational needs and/or disabilities typically
make good or improving progress from their starting points.
• Inspection evidence endorses the views expressed that pupils are carefully supported, behave well and
typically make good progress.
• Leaders, including governors, carry out thorough self-evaluation, taking stock of a breadth of information
about the quality of provision, including the views of staff, parents and pupils.
• Pupils told inspectors they feel safe at the school. They cited the secure, modern school site and the
approachability of adults as reasons for this sense of safety.
Achievement and Progress
A detailed breakdown of Hampton College’s performance and any in-year updates are available on the DfE website.
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, the board of trustees continues to adopt the going concern basis in preparing the accounts. Further details regarding the adoption of the going concern basis can be found in the statement of accounting policies.
The Hampton Academies Trust's income is derived in the main from the Department for Education (DfE - via the Education and Skills Funding Agency (ESFA) in the form of recurrent and capital grants, the use of which is restricted to particular purposes. The grants received from the ESFA and other courses during the year ended 31 August 20 20 and the associated expenditure are shown as restricted funds in the statement of financial activities.
The Trust also received an element of funding for the acquisition and replacement of fixed assets (DFC) from the ESFA. In accordance with the charities statement of recommended practice, "Accounting and Reporting by Charities" (SORP 201 9 ), such grants are shown in the statement of financial activities as restricted income in the fixed asset fund. The restricted fixed assets fund is reduced by annual depreciation charges over the expected useful life of the assets concerned.
Income from charitable activities for the year ended 31 August 20 20 totalled £ 13.1m which after expenditure left a small surplus before transfers and other recognised gains and losses.
The financial year ended 31 August 20 20 recognised a £ 1,038,000 actuarial loss on the Hampton Academies Trust defined benefit pension scheme. Hampton Academies Trust brought forward an inherited pension liability of £ 1,135m on their local government defined benefit pension scheme.
The net book value of tangible fixed assets was £ 36m ; movements in tangible assets are shown in note 14 to the financial statements. The assets were exclusively for providing educational and associated support services to students and the community.
2020 has been a difficult year for all. The impact of COVID-19 has been far reaching and affected both the operation and the finances of the trust. However, the trust has effectively managed the additional costs of operating throughout lockdown and preparing for the opening of its schools from September 2020. Budgets for 2020/21 have been set to include allowances for the additional expenditure on the basis of the pandemic continuing during the new financial year.
The trustees have given careful consideration to the level of reserves held by the trust. The trust seeks to maintain its commitment to delivering high quality education at the best value for money, within the funding available from the ESFA and other sources.
The reserves held by the trust for the year ended 31 August 20 20 totalled £ 33,138,439 but only £ 457,364 of this is freely available because the balance is invested in fixed assets or has a restriction for other purposes including the deficit on the local government pension scheme of £ 4,279,000 .
Restricted fixed asset funds of £ 35,890,127 are represented by the value of fixed assets of £ 35,772,074 , funding for Hampton Gardens of £ 51,770 and other capital funding of £ 66,283 that will be spent in the next financial year.
Restricted funds are £ 1,069,948 (excluding the pension reserve).
The trust is confident that it will meet the required pension contributions from its projected income without significantly impacting on its planned level of charitable activity. It continues to calculate its 'free' or general unrestricted reserves without setting aside designated reserves to cover the pension liability.
The trust aims to manage its cash balances to provide for the day-to-day working capital requirements of its operations, whilst protecting the real long-term value of any surplus cash balances against inflation. In addition, the trust aims to invest surplus cash funds to optimise returns, whilst ensuring that the investment instruments are such that there is no risk to the loss of these funds.
Investments may only be made in accordance with written procedures approved by the Governing Body.
The trustees have assessed the major risks to which the academy is exposed, in particular those relating to the specific teaching, provision for facilities and other operational aspects of the academy, and its finances. The principal risk facing the academy is insufficient demand for academy's services, leaving it unsustainable.
The trustees have implemented a number of systems to assess the other risks that the academy faces, especially in the operational areas (e.g. in relation to teaching, health and safety, safeguarding, and educational trips) and in relation to the control of finance. They have introduced systems, including operational procedures (e.g. recruitment and safeguarding procedures including vetting of new staff and visitors, robust health and safety procedures and regular externally led audits) and internal financial controls. The trustees have also ensured they have adequate insurance cover during the period.
A comprehensive risk register has been produced and is being monitored by the trustees to ensure that risks are treated or tolerated depending on the urgency and potential impact of the risk. This risk register is updated on an annual basis. Sufficient cash is held in reserve to enable the academy to support any financial issues that it may experience. The academy has robust financial procedures which are implemented appropriately at all times.
The Trust is compliant with the recognised standards of fundraising set out in the Code of Fundraising Practice. Hampton Academies Trust does not use professional fundraisers and there have been no complaints received by the Trust about fund raising activities carried out by the Trust in the year.
We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting.
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2 equivalent per pupil, the recommended ratio for the sector.
There are PIR switches installed in all classrooms, offices, toilets and most corridors. Timers for the lights to go out before a movement has been sensed have been reduced in a number of areas to reduce electricity.
The Trust has opened a new local Primary school in 2019. The new school, Hampton Lakes is a two form entry 4-11 Primary School serving the expanding Hampton community, located in close proximity to the trusts other schools. Initial provision was based from within one of our existing schools, Hampton College Primary, while the new building was completed and delivered to the Trust in Sept 2020. The PAN for the school is 60 and the school will grow a year group at a time until it is full. The Trust also has within its strategic plan, the opportunity to bid in future Free School waves, including an outstanding bid under wave 14 and alongside this, engage in dialogue with existing schools in the city that might provide additional strength to the Trust. As part of this process, Dogsthorpe Infants school is due to join the Trust in late 2020.
On 7 September 2020 Group Audit Services Limited trading as Baldwins Audit Services changed its name to Azets Audit Services Limited. The name they practice under is Azets Audit Services and accordingly they have signed their report in their new name.
A resolution proposing that Azets Audit Services be reappointed as auditor of the charitable company will be put to the members.
The trustees' report, incorporating a strategic report, was approved by order of the board of trustees, as the company directors, on
As trustees we acknowledge we have overall responsibility for ensuring that Hampton Academies 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.
As trustees, we have reviewed and taken account of the guidance in DfE's g overnance h andbook and competency framework for governance.
The board of trustees has delegated the day-to-day responsibility to the Executive Headteacher, 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 Hampton Academies Trust and the Secretary of State for Education. The accounting officer is also responsible for reporting to the board of trustees any material weaknesses or breakdowns in internal control.
The information on governance included here supplements that described in the Trustees' Report and in the Statement of Trustees' Responsibilities. The board of trustees has formally met 5 times during the year. Attendance during the year at meetings of the board of trustees was as follows:
The finance committee is a sub-committee of the main board of trustees. Its purpose is to ensure sound management of the academy finances and resources, including proper planning, monitoring and probity; most particularly by:
assisting to promote the highest standards of propriety in the use of public funds and encourage proper accountability for the use of those funds;
promoting a climate of financial discipline and the opportunity for financial mismanagement.
Attendance at meetings in the year was as follows:
The audit committee is a sub-committee of the main board of trustees. Its purpose is to scrutinise the academy budget and finance, internal controls systems and risk management arrangements, most particularly by:
Attendance at meetings in the year was as follows:
As accounting officer , the Executive Headteacher 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 academy 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:
Undertaking local and national benchmarking exercises to ensure expenditure in key areas is consistent or lower than other similar academies whilst still achieving required outcomes.
Reviewing internal administrating processes and procedures and implementing changes to increase efficiency.
Undertaking a review of site management service charges and contracts to ensure they are fit for purpose and provide best value in terms of cost versus performance.
Pursuing alternative sources of funding to improve provision and acquire additional services and resources for the academy. Examples of secured this year include:
On-going Enthuse Funding to support CPD for Science staff.
Income from facilities lettings as Hampton Gardens.
The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk of failure to achieve policies, aims and objectives. It can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an on-going process designed to identify and prioritise the risks to the achievement of academy trust policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically. The system of internal control has been in place in Hampton Academies Trust for the period 1 September 2019 to 31 August 2020 and up to the date of approval of the annual report and accounts.
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 ongoing process for identifying, evaluating and managing the academy trust's significant risks that has been in place for the period 1 September 2019 to 31 August 2020 and up to the date of approval of the annual report and accounts. This process is regularly reviewed by the board of trustees.
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 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 also the requirements of the new Ethical standards for auditors not to allow the same organisation to undertake both the internal and external audit function. The trust have decided to appoint Macintyre Hudson as internal auditor.
The internal auditor's role includes giving advice on financial matters and performing a range of checks on the academy trust's financial systems.
On a termly basis, the auditor reports to the board of trustees on the operation of the systems of control and on the discharge of the financial responsibilities of the board of trustees.
The internal auditor delivers against a prescribed schedule of works (aligned to ESFA guidance) and a written report is circulated to the finance committee after each visit - no material control issues arose as a result of their work.
As accounting officer the Executive Headteacher 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 internal auditor;
the work of the external auditor;
the work of the executive managers within the academy trust who have responsibility for the development and maintenance of the internal control framework.
The accounting officer has been advised of the implications of the result of their review of the system of internal control by the finance committee and audit committee and a plan to address weaknesses and ensure continuous improvement of the system is in place.
Approved by order of the board of trustees on 09 December 2020 and signed on its behalf by:
As accounting officer of Hampton Academies Trust, I have considered my responsibility to notify the academy trust board of trustees and the Education and Skills Funding Agency (ESFA) of material irregularity, impropriety and non-compliance with terms and conditions of all funding received by the academy trust, under the funding agreement in place between the academy trust and the Secretary of State for Education. As part of my consideration I have had due regard to the requirements of the Academies Financial Handbook 2019.
I confirm that I and the academy trust's board of trustees 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 2019.
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 ESFA.
The trustees (who are also the directors of Hampton Academies Trust for the purposes of company law) are responsible for preparing the trustees' report and the accounts in accordance with the Academies Accounts Direction 2019 to 2020 published by the Education and Skills Funding Agency, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
Company law requires the trustees to prepare accounts for each financial year. Under company law, the trustees must not approve the accounts 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 accounts, the trustees are required to:
select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP 2019 and the Academies Accounts Direction 2019 to 2020;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts; and
prepare the accounts 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 accounts 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 that grants received from ESFA/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 website. Legislation in the United Kingdom governing the preparation and dissemination of accounts may differ from legislation in other jurisdictions.
Approved by order of the members of the board of trustees on 09 December 2020 and signed on its behalf by:
Opinion
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 'Auditor's responsibilities for the audit of the accounts' section of our report. We are independent of the academy trust in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
the trustees' use of the going concern basis of accounting in the preparation of the accounts is not appropriate; or
the trustees have not disclosed in the accounts any identified material uncertainties that may cast significant doubt about the academy trust’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the accounts are authorised for issue.
Other information
The trustees are responsible for the other information , which comprises the information included in the a nnual report other than the accounts and our auditor’s report thereon. Our opinion on the accounts does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the accounts or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
the information given in the trustees' r eport including the incorporated strategic report for the financial year for which the accounts are prepared is consistent with the accounts; and
the trustees' r eport including the incorporated strategic report ha s been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the academy trust and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' r eport , including the incorporated strategic report .
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report 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 accounts are not in agreement with the accounting records and returns; or
certain disclosures of trustees' remuneration specified by law are not made; or
As explained more fully in the s tatement of trustees' r esponsibilities, the trustees are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error.
In preparing the accounts, the trustees are responsible for assessing the academy trust’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company, or have no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these accounts.
A further description of our responsibilities for the audit of the accounts is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 . Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company 's members as a body, for our audit work, for this report, or for the opinions we have formed.
In accordance with the terms of our engagement letter dated 9 September 2020 and further to the requirements of the Education and Skills Funding Agency (ESFA) as included in the Academies Accounts Direction 2019 to 2020, we have carried out an engagement to obtain limited assurance about whether the expenditure disbursed and income received by Hampton Academies Trust during the period 1 September 2019 to 31 August 2020 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 Hampton Academies Trust and ESFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to the Hampton Academies Trust and ESFA 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 Hampton Academies Trust and ESFA, for our work, for this report, or for the conclusion we have formed.
The accounting officer is responsible, under the requirements of Hampton Academies Trust’s funding agreement with the Secretary of State for Education dated 27 August 2014 and the Academies Financial Handbook, extant from 1 September 2019, 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 2019 to 2020. We report to you whether anything has come to our attention in carrying out our work which suggests that in all material respects, expenditure disbursed and income received during the period 1 September 2019 to 31 August 2020 have not been applied to purposes intended by Parliament or that the financial transactions do not conform to the authorities which govern them.
We conducted our engagement in accordance with the Academies Accounts Direction 2019 to 2020 issued by ESFA. We performed a limited assurance engagement as defined in our engagement letter.
The objective of a limited assurance engagement is to perform such procedures as to obtain information and explanations in order to provide us with sufficient appropriate evidence to express a negative conclusion on regularity.
A limited assurance engagement is more limited in scope than a reasonable assurance engagement and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in a reasonable assurance engagement. Accordingly, we do not express a positive opinion.
Our engagement includes examination, on a test basis, of evidence relevant to the regularity and propriety of the academy trust's income and expenditure.
The work undertaken to draw to our conclusion includes:
a review of the activities of the academy, by reference to sources of income and other information
available to us;
sample testing of expenditure, including payroll;
a review of minutes of Governors' meetings.
In the course of our work, nothing has come to our attention which suggests that in all material respects the expenditure disbursed and income received during the period 1 September 2019 to 31 August 2020 has not been applied to purposes intended by Parliament and the financial transactions do not conform to the authorities which govern them.
The accounts on pages 21 to 45 were approved by the trustees and authorised for issue on
A summary of the principal accounting policies adopted (which have been applied consistently, except where noted), judgements and key sources of estimation uncertainty, is set out below.
The accounts of the academy trust, which is a public benefit entity under FRS 102, have been prepared under the historical cost convention in accordance with the Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102), the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)), the Academies Accounts Direction 2019 to 2020 issued by ESFA, the Charities Act 2011 and the Companies Act 2006.
The trustees assess whether the use of going concern is appropriate, ie whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charitable company to continue as a going concern including the impact of COVID-19. The trustees have made this assessment in respect of a period of at least one year from the date of authorisation for issue of the accounts and have concluded that the academy trust has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the academy trust’s ability to continue as a going concern. Thus they continue to adopt the going concern basis of accounting in preparing the accounts.
All incoming resources are recognised when the academy trust has entitlement to the funds, the receipt is probable and the amount can be measured reliably.
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 meeting any performance-related conditions there is not unconditional entitlement to the income and its recognition is deferred and included in creditors as deferred income until the performance-related conditions are met. Where entitlement occurs before income is received, the income is accrued.
General Annual Grant is recognised in full in the statement of financial activities in the period for which it is receivable, and any abatement in respect of the period is deducted from income and recognised as a liability.
Capital grants are recognised in full when there is an unconditional entitlement to the grant. Unspent amounts of capital grants are reflected in the balance sheet in the restricted fixed asset fund. Capital grants are recognised when there is entitlement and are not deferred over the life of the asset on which they are expended.
Donations are recognised on a receivable basis (where there are no performance-related conditions) where the receipt is probable and the amount can be reliably measured.
Other income, including the hire of facilities, is recognised in the period it is receivable and to the extent the academy trust has provided the goods or services.
Donated fixed assets are measured at fair value unless it is impractical to measure this reliably, in which case the cost of the item to the donor is used. The gain is recognised as income from donations and a corresponding amount is included in the appropriate fixed asset category and depreciated over the useful economic life in accordance with the academy trust‘s accounting policies.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
All resources expended are inclusive of irrecoverable VAT.
This includes all expenditure incurred by the academy trust to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
These are costs incurred on the academy trust's educational operations, including support costs and costs relating to the governance of the academy trust apportioned to charitable activities.
These include the costs attributable to the academy trust's compliance with constitutional and statutory requirements, including audit, strategic management, trustees' meetings and reimbursed expenses.
Assets costing £2,000 or more are capitalised as tangible fixed assets and are carried at cost, net of depreciation and any provision for impairment.
Where tangible fixed assets have been acquired with the aid of specific grants, either from the government or from the private sector, they are included in the balance sheet at cost and depreciated over their expected useful economic life. Where there are specific conditions attached to the funding that require the continued use of the asset, the related grants are credited to a restricted fixed asset fund in the statement of financial activities and carried forward in the balance sheet. Depreciation on the relevant assets is charged directly to the restricted fixed asset fund in the statement of financial activities. Where tangible fixed assets have been acquired with unrestricted funds, depreciation on such assets is charged to the unrestricted fund.
The building in which Hampton College operates, which is included in long-term leasehold property, is based on an ESFA valuation as the construction cost was not available at the time of transfer.
On 11 August 2017 the academy was donated the building for Hampton Gardens School. This was built using a free school bid. The building is included as an addition to long-term leasehold property at construction cost.
Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life, as follows:
No depreciation is provided in respect of freehold land.
A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the statement of financial activities.
Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the academy trust anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods of services it must provide.
Rentals payable under operating leases are charged against income on a straight-line basis over the period of the lease.
The academy trust only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the academy trust and their measurement basis are as follows.
Trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments.
Cash at bank is classified as a basic financial instrument and is measured at face value.
Trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition.
Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument.
The academy trust is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the academy 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.
Retirement benefits to employees of the academy trust are provided by the Teachers' Pension Scheme ('TPS') and the Local Government Pension Scheme ('LGPS'). These are defined benefit schemes and the assets are held separately from those of the academy trust.
The TPS is an unfunded scheme and contributions are calculated to spread the cost of pensions over employees' working lives with the academy 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 based on quadrennial valuations using a prospective unit credit method. The TPS is an unfunded multi-employer scheme with no underlying assets to assign between employers. Consequently, the TPS is treated as a defined contribution scheme for accounting purposes and the contributions are recognised in the period to which they relate.
The LGPS is a funded multi-employer scheme and the assets are held separately from those of the academy 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 credit 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 net income or expenditure are the current service costs and the costs of scheme introductions, benefit changes, settlements and curtailments. They are included as part of staff costs as incurred. Net interest on the net defined benefit liability/asset is also recognised in the statement of financial activities and comprises the interest cost on the defined benefit obligation and interest income on the scheme assets, calculated by multiplying the fair value of the scheme assets at the beginning of the period by the rate used to discount the benefit obligations. The difference between the interest income on the scheme assets and the actual return on the scheme assets is recognised in other recognised gains and losses. Actuarial gains and losses are recognised immediately in other recognised gains and losses.
Unrestricted income funds represent those resources which may be used towards meeting any of the charitable objects of the academy trust at the discretion of the trustees.
Restricted fixed asset funds are resources which are to be applied to specific capital purposes imposed by funders where the asset acquired or created is held for a specific purpose.
Restricted general funds comprise all other restricted funds received with restrictions imposed by the funder/donor and include grants from the Education and Skills Funding Agency and Department for Education.
Accounting e stimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The academy trust makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Tangible fixed assets are recognised at cost or valuation, less accumulated depreciation and any impairment. Depreciation takes place over the estimated useful life, down to the assessed residual value. The carrying amount of the academy's fixed assets is tested as soon as changed conditions show that a need for impairment has arisen.
The present value of the Local Government Pension Scheme defined benefit liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost or income for pensions include the discount rate. Any changes in these assumptions, which are disclosed in note 21, will impact the carrying amount of the pension liability. Furthermore a roll forward approach which projects results from the latest full actuarial valuation performed at 31 March 2019 has been used by the actuary in valuing the pensions liability at 31 August 2020. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of the pension liability.
The academy trust has provided the following central services to its academies during the year:
Executive Headteacher support;
facilities management;
human resources;
finance function.
The academy trust charges for these services on the following basis:
Year ended 31 August 2020
Hampton College - 30% of budgeted central services costs
Hampton Gardens - 49% of budgeted central services costs
Hampton College - Primary Phase - 20% of budgeted central services costs
Hampton Lakes - 1% of budgeted central services costs
Year ended 31 August 2019
Hampton College - 34% of budgeted central services costs
Hampton Gardens - 33% of budgeted central services costs
Hampton College - Primary Phase - 33% of budgeted central services costs
Hampton Lakes - no charge in the year.
Included in wages and salaries costs above is a severance payment of £2,500 (2019 - £13,099) paid to one (2019 - one) employee.
Seven (2019 - seven) of the above employees participated in the Teachers' Pension Scheme. The other employee participated in the Local Government Pension Scheme.
The key management personnel of the academy trust comprise the trustees and the senior management team as listed on page 1. The total amount of employee benefits (including employer pension contributions and employer national insurance contributions ) received by key management personnel for their services to the academy trust was £1,527,857 (2019 - £1,295,098).
During the year retirement benefits were accruing to 1 trustee (2019 - 1) in respect of defined benefit pension schemes.
One or more of the trustees has been paid remuneration or has received other benefits from an employment with the academy trust. The Executive Headteacher and other staff trustees only receive remuneration in respect of services they provide undertaking the roles of Executive Headteacher and other staff members under their contracts of employment, and not in respect of their services as trustees.
The value of trustees' remuneration and other benefits was as follows:
H E Price (executive principal and trustee)
Remuneration £125,000 - £130,000 (2019 - £120,000 - £125,000)
Employer’s pension contributions £25,000 - £30,000 (2019 - £20,000 - £25,000)
Other related party transactions involving the trustees are set out within the related parties note.
In accordance with normal commercial practice, the academy trust has purchased insurance to protect trustees and officers from claims arising from negligent acts, errors or omissions occurring whilst on academy trust business. The insurance provides cover up to £2,000,000 on any one claim and the cost for the year ended 31 August 2020 is included in the total insurance cost of £56,003.
Deferred income relates to a grant received for the provision of free school meals of £39,811 (2019 - £30,208) for the first term of the next financial year, rates income for the next financial year of £nil (2019 - £38,330), GAG received in advance for Hampton Gardens of £55,159 (2019 - £62,355), GAG received in advance for Hampton Lakes of £14,913 (2019 - £nil) and income received of £1,368 (2019 - £41,433) for trips that are taking place in the next financial year.
The specific purposes for which the funds are to be applied are as follows:
Unrestricted funds :
General funds - those resources which may be used towards meeting any of the objects of the academy at the discretion of the trustees. These have not been designated for particular purposes.
Restricted funds :
General Annual Grant (GAG) - made up of a number of different funding streams from the ESFA, all of which are to be used to cover the running costs of the academy.
Under the funding agreement with the Secretary of State, the academy was not subject to a limit on the amount of GAG that it could carry forward at 31 August 2020.
Start up grants - Funds to set up Hampton Lakes school.
Other DfE / ESFA - represent ESFA and Local Authority grants received for specific purposes.
Other restricted funds - represents other income which must be used for the specific purposes intended.
Pension reserve - represents the current deficit balance of the Local Government Pension Scheme (LGPS).
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.
Restricted fixed asset funds :
ESFA capital grants - represents unspent grants received for which the specific purpose of capital expenditure has been imposed by the funder.
Assets transferred on conversion - represents the net book value of land and buildings transferred into the academy by the Local Authority upon conversion.
Assets acquired with funding - represent the net book value of fixed assets acquired with ESFA and other funding streams since conversion.
Assets donated to the academy - represents the net book value of the land and building donated to the academy.
The academy trust's employees belong to two principal pension schemes: the Teachers' Pension Scheme England and Wales (TPS) for academic and related staff; and the Local Government Pension Scheme (LGPS) for non-teaching staff, which is managed by Cambridgeshire County Council. Both are multi-employer 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 2016, and that of the LGPS related to the period ended 31 March 2019.
Contributions amounting to £190,345 were payable to the schemes at 31 August 2020 (2019: £nil) and are included within creditors.
The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pension Scheme Regulations 2014. Membership is automatic for teachers in academies. All teachers have the option to opt out of the TPS following enrolment.
The TPS is an unfunded scheme to which both the member and employer makes contributions, as a percentage of salary. These contributions are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.
The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2019. The valuation report was published by the Department for Education on 5 March 2019.
The key elements of the valuation and subsequent consultation are:
employer contribution rates set at 23.68% of pensionable pay (including a 0.08% employer administration charge)
total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service to the effective date of £218,100 million, and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £196,100 million giving a notional past service deficit of £22,000 million
the SCAPE rate, set by HMT, is used to determine the notional investment return. The current SCAPE rate is 2.4% above the rate of CPI. The assumed real rate of return is 2.4% in excess of prices and 2% in excess of earnings. The rate of real earnings growth is assumed to be 2.2%. The assumed nominal rate of return including earnings growth is 4.45%.
The next valuation result is due to be implemented from 1 April 2023.
The employer's pension costs paid to the TPS in the period amounted to £1,216,300 (2019 - £712,747).
A copy of the valuation report and supporting documentation is on the Teachers’ Pensions website.
Under the definitions set out in FRS 102, the TPS is an unfunded multi-employer pension scheme. The academy trust has accounted for its contributions to the scheme as if it were a defined contribution scheme. The academy trust has set out above the information available on the scheme.
The LGPS is a funded defined benefit pension scheme, with the assets held in separate trustee-administered funds. The total contributions are as noted below. The agreed contribution rates for future years are 22.3% for employers and 5.5% to 9.9% for employees.
Contribution rates for the year ended 31 August 2021 are estimated to be £368,000.
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.
Scheme liabilities would have been affected by changes in assumptions as follows:
Owing to the nature of the academy 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 the academy trust has an interest. All transactions involving such organisations are conducted at arm's length and in accordance with the academy trust's financial regulations and normal procurement procedures. The following related party transaction took place in the period of account.
A Kingsley, a trustee, has provided net support software and support to the academy free of charge through his IT company.
In entering into these transactions, the academy trust has complied with the requirements of the Academies Financial Handbook 2019.
The building in which Hampton Lakes School is to operate from was commissioned and built by the Local Authority during the year. The property was given to Hampton Academies Trust on 30 September 2020.
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 or she is a member, or within one year after he or she ceases to be a member, such amount as may be required, not exceeding £10 for the debts and liabilities contracted before he or she ceases to be a member.