1508FSS Final YC - Yavneh College, Borehamwood · 8/31/2015 · FOR THE YEAR ENDED 31 AUGUST 2015 The Trustees present their Annual Report with the financial statements and Auditors’

Registered number: 07643712

YAVNEH COLLEGE

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2015

YAVNEH COLLEGE

(A Company Limited by Guarantee)

CONTENTS

Page

Reference and Administrative Details of the Yavneh College, its Trustees and Advisers 1

Trustees' Report 2 - 6

Governance Statement 7 - 9

Statement on Regularity, Propriety and Compliance 10

Trustees' Responsibilities Statement 11

Independent Auditors' Report 12 - 13

Independent Reporting Accountant's Assurance Report on Regularity 14 - 15

Statement of Financial Activities 16

Balance Sheet 17

Cash Flow Statement 18

Notes to the Financial Statements 19 - 35

YAVNEH COLLEGE


REFERENCE AND ADMINISTRATIVE DETAILS OF YAVNEH FOUNDATIONFOR THE YEAR ENDED 31 AUGUST 2015

Trustees Mr D I Album, Foundation Governor, Vice ChairMr D Ardeman, Parent Governor (appointed 5 November 2014)Mrs D Barnett, Teacher (appointed 1 October 2015)Mrs T Charlton, Foundation GovernorMrs A M Cooklin, Parent Governor (resigned 4 November 2014)Mrs L Davis, Teacher (appointed 1 October 2015)Mr M Frazer, Foundation Governor (appointed 23 September 2014)Mr R M Gilbert, Foundation GovernorMrs R Hyams, Foundation GovernorMrs H C Kraines, Parent GovernorMr S Lewis, HeadteacherMr A Maurice, Foundation Governor (appointed 1 September 2014)Mr A Newbey, Staff Governor (resigned 30 September 2015)Mrs D Morris, Foundation GovernorMrs S A Nyman, Foundation Governor, ChairMr B E Raphael, Parent GovernorMr J S Reback, Foundation GovernorMr S H Rosenberg, Parent GovernorMrs H Saunders, Staff Governor (resigned 16 October 2014)

Company Secretary Mrs H Fraser

Members Mr D I AlbumMr M A GordonMrs S A Nyman

Accounting Officer Mr S Lewis

Senior LeadershipTeam Mr J Cordara, (appointed 1st September 2015)

Mr A DavisMrs H FraserMrs M LeeMr S Lewis, HeadteacherMr D MarcusMrs H Nemko, (resigned 31 August 2015)Mrs R Seamark

Registered and principaloffice

Hillside AvenueBorehamwoodWD6 1HL

Company registerednumber 07643712

Independent Auditors Price Bailey LLPChartered AccountantsCauseway House1 Dane StreetBishop's StortfordHertfordshireCM23 3BT

Bankers Lloyds Bank plc25 Gresham StreetLondonEC2N 7HN

Solicitors Stone King16 St Johns LaneLondonEC1M 4BS

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TRUSTEES REPORTFOR THE YEAR ENDED 31 AUGUST 2015

The Trustees present their Annual Report with the financial statements and Auditors’ Report for the year ended 31st August2015 for Yavneh College (the Academy, the Charitable Company or the Trust). The Annual Report serves the purposes ofboth a Trustees’ Report and a Directors’ Report under company law.

Structure, Governance and Management

CONSTITUTION

Yavneh College is a Company limited by guarantee and an exempt charity. It’s Memorandum and Articles of Association arethe primary governing documents.

All Trustees are Directors of Yavneh College for the purposes of company law. The Charitable Company is known asYavneh College. Yavneh Foundation Trust owns the land and buildings from which Yavneh College operates. YavnehFoundation Trust appoints the Foundation Trustees of Yavneh College.

Details of the Trustees who served throughout the year, except as noted, are included in the reference and administrativedetails on page 1 of these reports and financial statements.

MEMBERS' LIABILITY

Each Member of the Charitable Company undertakes to contribute to the assets of the Charitable Company in the event of itbeing wound up while they are a Member, or within one year after they cease to be a Member, such amount as may berequired, not exceeding £10, for the debts and liabilities contracted before they ceased to be a Member.

TRUSTEES' INDEMNITIES

Trustees are covered by indemnity insurance purchased at Yavneh College's expense to cover the liability of the Trusteeswhich by virtue of any rule of law would otherwise attach to them in respect of any negligence, default or breach of trust orbreach of duty of which they may be guilty in relation to Yavneh College. Such indemnity insurance will not apply to any actor omission which the Trustees knew to be a breach of trust or breach of duty or which was committed by the Trustees inreckless disregard to whether it was a breach of trust or breach of duty or not; nor will such indemnity insurance extend tothe costs of any unsuccessful defence to a criminal prosecution brought against the Trustees in their capacity as directorsof the Charitable Company.

PRINCIPLE ACTIVITIES

The principle activities of Yavneh College are to advance, for the public benefit, education in the United Kingdom. Inparticular, but without prejudice to the generality of the foregoing, this is to be done by establishing, maintaining, carryingon, managing and developing Yavneh College with a designated Jewish religious character offering a broad and balancedcurriculum as a Modern Orthodox Jewish School under the religious authority of the Chief Rabbi of the United HebrewCongregations of the Commonwealth both generally and in particular in relation to arranging for religious education anddaily acts of worship (as required by the funding agreement with Department for Education (DfE)).

The principle activities are also to promote, for the benefit of the inhabitants of Borehamwood and the surrounding area, theprovision of facilities for recreation or other leisure time occupation of individuals who have need of such facilities by reasonof their youth, age, infirmity or disablement, financial hardship or social and economic circumstances or for the public atlarge in the interest of social welfare and with the object of improving the condition of life of the said inhabitants.

METHOD OF RECRUITMENT AND APPOINTMENT OR ELECTION OF TRUSTEES

• Foundation Trustees are appointed by the Trustees of Yavneh Foundation Trust.

• Parent Trustees are appointed by election of the parents of pupils attending Yavneh College.

• Staff Trustees are appointed by election of the staff employed by Yavneh College.

• The Headteacher automatically becomes an ex-officio Trustee.

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TRUSTEES REPORT (continued)FOR THE YEAR ENDED 31 AUGUST 2015

POLICIES AND PROCEDURES ADOPTED FOR THE INDUCTION AND TRAINING OF TRUSTEES

The Board of Trustees recognises the importance of Trustee induction and training. All new Trustees after appointmentreceive induction training.

Yavneh College buys into the Trustee training facility run by the Hertfordshire Local Authority and Trustees regularly attendthese sessions. Training sessions are also run for the Trustees which are bespoke for the Board of Trustees of YavnehCollege. Trustees also attend relevant training provided by other organisations.

ORGANISATIONAL STRUCTURE

The Trustees are responsible for setting the general policy, adopting an annual plan and making major decisions about thedirection of Yavneh College. The Trustees are responsible for the appointment of the Headteacher and play an active rolein the recruitment of all members of the Senior Leadership Team (SLT).

The Board of Trustees delegates certain aspects of its functions to its committees; Finance, Premises, Education,Personnel and Admissions. Disciplinary, Grievance and Appeals committees meet as required.

The Headteacher is an ex-officio Trustee and is the Accounting Officer. The Headteacher directly line-manages theMembers of the SLT, which comprises of 1 Deputy Head (Daniel Marcus), 4 Assistant Heads (John Cordara, Andrew Davis,Melanie Lee and Rebecca Seamark) and the Business Manager (Hayley Fraser). As a group, the SLT is responsible for theday-to-day operation of Yavneh College.

RISK MANAGEMENT

Yavneh College maintains a risk register identifying the major risks to which Yavneh College is exposed, and identifyingactions and procedures to mitigate those risks. This register is approved and monitored by the Board of Trustees, togetherwith the appropriate committees to which the risks relate. The principle risks facing Yavneh College at a contextual level areoutlined below in the principle risks and uncertainties section; those facing Yavneh College at an operational level areaddressed by its systems and by internal financial and other controls.

The Trustees report that Yavneh Colleges financial and internal controls conform to guidelines issued by the EducationFunding Authority (EFA), and that improvements to the wider framework of systems dealing with business risk and riskmanagement strategy continue to be made and formally documented.

CONNECTED ORGANISATIONS, INCLUDED RELATED PARTY RELATIONSHIPS

Yavneh College has a relationship with Yavneh Foundation Trust through certain Trustees who are also trustees of YavnehFoundation Trust. The premises used by Yavneh College is owned by Yavneh Foundation Trust.

OBJECTIVES AND ACTIVITIES

Objects and Aims

The Board of Trustees had the following main objectives for the period ended 31 August 2015:

• To ensure that every pupil enjoys the same high quality education in terms of resourcing, tuition and pastoral care.

• To continue to raise the standard of educational achievement of all pupils and thereby to maintain Yavneh College’s local and national reputation.

• To provide value for money for the funds expended.

Objectives, Strategies and Activities

In keeping with its objectives for the period, the main activities provided by Yavneh College included:

• Teaching and learning opportunities for all pupils to attain appropriate academic qualifications.

• Training opportunities for all staff, and especially teaching staff.

• A programme of enrichment activities for all students in KS3.

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• Extension opportunities for pupils to continue to grow their Jewish Identity including, among other activities, the Year 9 Israel tour, shabbatons, Bet Midrash Track programme and Year 12 Poland trip.

Public Benefit

The Trustees of Yavneh College have complied with their duty to have due regard to the Guidance on Public Benefitpublished by the Charity Commission.

Yavneh College has operated in accordance with its Funding Agreement as a non charging, not for profit organisationthroughout the period in question. Pupil admissions to Yavneh College have been conducted in accordance with itsadmissions policy.

STRATEGIC REPORT

Achievements and Performance

Yavneh College measures its success partly through a series of performance indicators. These indicators comprise:

• Number of applications to Yavneh College and number of pupils in roll at Yavneh College.

• Examination results and other indicators of pupil progress.

• Financial health.

Admissions: Yavneh College continues to be oversubscribed with over 520 applications for 150 places to start in September2015.

Examination results for 2015 were outstanding: 85% of pupils achieved 5 A*-C including English and Maths in the summerof 2015. Yavneh College was rated 16th in country according to The Times league tables for GCSE results for non-selectiveschools and 1st in the country for A level results for non-selective schools for the second year running. 63% of pupilsachieved A*- A at A level. In Key Stage 3, 75% of pupils achieved their end of year target in English and Maths.

Financial Health: Yavneh College conducted its financial management in accordance with the Academies FinancialHandbook.

Going concern

After making appropriate enquiries, the Board of Trustees has a reasonable expectation that Yavneh College has adequateresources to continue in operational existence for the foreseeable future. For this reason it continues to adopt the goingconcern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis canbe found in the Statement of Accounting Policies.

FINANCIAL REVIEW Financial report for the year

Most of Yavneh College's income is obtained from the EFA in the form of recurrent grants, the use of which is restricted toparticular purposes. The grants received from the EFA during the period ended 31 August 2015 and the associatedexpenditure are shown as restricted funds in the Statement of Financial Activities.

In addition the school receives income from Yavneh Foundation Trust in order to support the pupils' Jewish Studies’learning and security costs.

Financial position

Yavneh College held fund balances at 31st August 2015 of £2,535,281, comprising £3,060,623 of restricted funds, £74,658of unrestricted general funds and a pension reserve deficit £(600,000).

At 31 August 2015 the net book value of fixed assets was £21,873 and movements in tangible fixed assets are shown innote 13 to the financial statements. The assets were used exclusively for providing education and the associated supportservices to the pupils of Yavneh College.

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Reserves policy

Having reviewed the cash flow for Yavneh College, there are currently insufficient funds for the Academy to hold cashreserves. The Trustees review the cash flow on an ongoing basis, and aim to work towards having sufficient reserves inplace to allow them to manage any unforeseen expenditure.

The restricted pension fund is materially in deficit and plans to eliminate the liability on the Defined Benefit Pension Schemeare set out in note 23 based on the period end actuarial valuation. Investment policy

In view of the level of cash resources held by Yavneh College, all of which are required to maintain sufficient cash reservesin the School as noted above, the Trustees do not invest surplus funds other than on short term deposit. At such time in thefuture when Yavneh College has sufficient surplus funds an investment policy will be established.

FINANCIAL RISK MANAGEMENT AND OBJECTIVES Principle risks and uncertainties

The Trustees of Yavneh College assess the principal risks and uncertainties facing Yavneh College as follows:

• Failures in governance and/or management: the risk in this area arises from potential failure to effectively manage the Academy's finances, internal controls, compliance with regulations and legislation, statutory returns, and governance in general. The Trustees continue to review and ensure that appropriate measures are in place to mitigate these risks.

• Reputational: the continuing success of Yavneh College is dependent on continuing to attract applicants in sufficientnumbers by maintaining the highest educational standards. To mitigate this risk Trustees ensure that studentattainment and progress are closely monitored and reviewed.

• Safeguarding and child protection: the Trustees continue to ensure that the highest standards are maintained in the areas of selection and monitoring of staff, the operation of child protection policies and procedures, health and safetyand discipline.

• Staffing: the success of Yavneh College is reliant on the quality of its staff and so the Trustees monitor and reviewpolicies and procedures to ensure recruitment, continued development (including performance reviews) andtraining of staff as well as ensuring there is clear succession planning.

• Fraud and mismanagement of funds: Yavneh College has appointed an Internal Auditor to carry out checks on financial systems and records as required by the Academy Financial Handbook.

PLANS FOR THE FUTURE

Yavneh College will continue striving to maintain and improve the levels of performance of its pupils at all levels.

Yavneh College intends to open a 2 form entry primary school in September 2016 on its site Hillside Avenue,Borehamwood. PROVISION OF INFORMATION TO AUDITORS

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 Auditors areunaware, and

• that each 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 Auditors in connection with preparing their report and to establish that the Charitable Company's Auditors are aware of that information.

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AUDITORS

The Auditors, Price Bailey LLP, are willing to continue in office and a resolution to appoint them will be proposed at theappropriate Trustees' meeting.

This report was approved by the Trustees on 15 December 2015 and signed on their behalf, by:

Mrs S A NymanChair of Governors

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GOVERNANCE STATEMENT

SCOPE OF RESPONSIBILITY

As Trustees, we acknowledge we have overall responsibility for ensuring that Yavneh College has an effective andappropriate system of control, financial and otherwise. However such a system is designed to manage rather than eliminatethe risk of failure to achieve business objectives, and can provide only reasonable and not absolute assurance againstmaterial misstatement or loss.

The Board of Trustees has delegated the day-to-day responsibility to the Headteacher, as Accounting Officer, for ensuringfinancial controls conform with the requirements of both propriety and good financial management and in accordance withthe requirements and responsibilities assigned to it in the funding agreement between Yavneh College and the Secretary ofState for Education. They are also responsible for reporting to the Board of Trustees any material weaknesses orbreakdowns 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 4 times during the year. Attendance during the year atmeetings of the Board of Trustees was as follows:

Trustee Meetings attended Out of a possible

Mr D I Album 4 4Mr D Ardeman 3 3Mrs T Charlton 3 4Mrs A M Cooklin 1 1Mr M Frazer 4 4Mr R M Gilbert 4 4Mrs R Hyams 3 4Mrs H C Kraines 4 4Mr S Lewis 4 4Mr A Maurice 2 4Mr A Newbey 2 4Mrs D Morris 4 4Mrs S A Nyman 4 4Mr B E Raphael 3 4Mr J S Reback 4 4Mr S H Rosenberg 4 4

Governance reviews:

The Trustees at Yavneh College keep their governance structure under constant review. There are a number of proceduresin place to support this, which include:

• Key governance controls are monitored centrally and through each committee of the Board of Trustees, using amonitoring tool developed by Yavneh College.

• A strategy meeting of all Trustees together with members of the SLT and the Trustees of Yavneh FoundationTrust is held in each school year.

• A skills audit is performed to assess the skills of the Board of Trustees and identify gaps to determine how they can be addressed.

• Each year, when the composition of the Board of Trustees changes, the membership and structure of each committee of the Board is reviewed. The strengths of each Trustee are considered when allocating themto committees in order to ensure that each committee has appropriate expertise.

• Trustees are encouraged to attend training courses in order to develop and maintain their competency asTrustees.

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GOVERNANCE STATEMENT (continued)

The Finance Committee is a sub-committee of the Board of Trustees. Its purpose is to address financial matters.

Attendance at meetings in the year was as follows:

Trustee Meetings attended Out of a possible

Mr R M Gilbert 2 4Mrs R Hyams 4 4Mr S Lewis 3 4Mrs S A Nyman 4 4Mr J S Reback 3 4Mr S H Rosenberg 3 4

REVIEW OF VALUE FOR MONEY

As Accounting Officer, the Headteacher has responsibility for ensuring that the Trust delivers good value in the use of publicresources. The Accounting Officer understands that value for money refers to the educational and wider societal outcomesachieved in return for the taxpayer resources received.

The Accounting Officer considers how the Trust’s use of its resources has provided good value for money during eachacademic year, and reports to the Board of Trustees where value for money can be improved, including the use ofbenchmarking data where available. The Accounting Officer for the Trust has delivered improved value for money during theyear by:

Conducting a whole school curriculum review, which has enabled Yavneh College to ensure that the curriculum offer

is broad and balanced.

Through joining teaching alliances in order to offer employees opportunity for continuing professional development

and collaboration.

Through conducting an annual review of staffing.

Providing termly reports on expenditure to the Finance Committee and appropriate challenges being made.

Using targeted pupil funds to improve outcomes. The literacy catch up funding in year 7 resulted in all pupils meeting

or exceeding their targets.

Continuously tracking progress to ensure results across all key stages. Yavneh College was the top non-selective

school at A Level for the second year running and 83% of students achieved 5 A* - C including English and Maths at

GCSE.

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 toachieve 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 theachievement of Yavneh College policies, aims and objectives, to evaluate the likelihood of those risks being realised andthe impact should they be realised, and to manage them efficiently, effectively and economically. The system of internalcontrol has been in place in Yavneh College for the year 1 September 2014 to 31 August 2015 and up to the date ofapproval of the Annual Report and financial statements.

CAPACITY TO HANDLE RISK

The Board of Trustees has reviewed the key risks to which the Yavneh College 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 viewthat there is a formal ongoing process for identifying, evaluating and managing the Yavneh College's significant risks, thathas been in place for the year 1 September 2014 to 31 August 2015 and up to the date of approval of the Annual Reportand financial statements. This process is annually reviewed by the Board of Trustees.

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GOVERNANCE STATEMENT (continued)

THE RISK AND CONTROL FRAMEWORK

Yavneh College’s system of internal financial control is based on a framework of regular management information andadministrative procedures including the segregation of duties and a system of delegation and accountability. In particular, itincludes:

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; and

identification and management of risks.

The Board of Trustees has considered the need for a specific internal audit function and has decided to appoint Price BaileyLLP as Internal Auditor.

The Internal Auditor's role includes giving advice on financial matters and performing a range of checks on YavnehCollege's financial systems. In particular the checks carried out in the current period included:

Payroll

Income

Expenditure

Fraud and Whistleblowing

Lettings

On a termly basis, the Internal Auditor reports to the Board of Trustees on the operation of the systems of control and onthe discharge of the Board of Trustees' financial responsibilities.

Price Bailey LLP delivered their schedule of works as planned and no material control issues were identified.

REVIEW OF EFFECTIVENESS

As Accounting Officer, the 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 Auditors;

the financial management and governance self-assessment process; and

the work of the executive managers within the Yavneh College 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 bythe Finance Committee and a plan to address weaknesses and ensure continuous improvement of the system is in place.

Approved by the Board of Trustees on 15 December 2015 and signed on its behalf, by:


Mr S LewisAccounting Officer

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STATEMENT ON REGULARITY, PROPRIETY AND COMPLIANCE

As Accounting Officer of Yavneh College I have considered my responsibility to notify the Board of Trustees and theEducation Funding Agency of material irregularity, impropriety and non-compliance with EFA terms and conditions offunding, under the funding agreement in place between the Yavneh College and the Secretary of State for Education. Aspart of my consideration I have had due regard to the requirements of the Academies Financial Handbook (2014).

I confirm that I and the Board of Trustees are able to identify any material, irregular or improper use of funds by the YavnehCollege, or material non-compliance with the terms and conditions of funding under the Yavneh College's fundingagreement and the Academies Financial Handbook (2014).

I confirm that no instances of material irregularity, impropriety or funding non-compliance have been discovered to date. Ifany instances are identified after the date of this statement, these will be notified to the Board of Trustees and EFA.

Mr S LewisAccounting Officer

Date: 15 December 2015

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TRUSTEES' RESPONSIBILITIES STATEMENTFOR THE YEAR ENDED 31 AUGUST 2015

The Trustees (who act as Trustees for charitable activities of Yavneh College and are also the Directors of the CharitableCompany for the purposes of company law) are responsible for preparing the Trustees' report and the financial statementsin accordance with the Annual Accounts Requirements issued by the Education Funding Agency, United KingdomAccounting Standards (UK GAAP) and applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year. Under company law theTrustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the stateof affairs of the Charitable Company and of its incoming resources and application of resources, including its income andexpenditure, for that period. In preparing these financial statements, the Trustees are required to:

select suitable accounting policies and then apply them consistently;

observe the methods and principles of the Charities SORP;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK GAAP Accounting Standards have been followed, subject to any material departures

disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the

Charitable Company will continue in business.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain theCharitable Company's transactions and disclose with reasonable accuracy at any time the financial position of theCharitable Company and enable them to ensure that the financial statements comply with the Companies Act 2006. Theyare also responsible for safeguarding the assets of the Charitable Company and hence for taking reasonable steps for theprevention and detection of fraud and other irregularities.

The Trustees are responsible for ensuring that in its conduct and operation the Charitable Company applies financial andother controls, which conform with the requirements both of propriety and of good financial management. They are alsoresponsible for ensuring grants received from 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 theCharitable Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financialstatements may differ from legislation in other jurisdictions.

Approved by the Board of Trustees on 15 December 2015 and signed on its behalf by:


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF YAVNEH COLLEGE

We have audited the financial statements of Yavneh College for the year ended 31 August 2015 which comprise theStatement of Financial Activities, the Balance Sheet, the Cash Flow Statement and the related notes. The financial reportingframework that has been applied in their preparation is applicable law, United Kingdom Accounting Standards (UnitedKingdom Generally Accepted Accounting Practice) and the Academies Accounts Direction 2013 to 2014 issued by theEducation Funding Agency.

This report is made solely to the Academy's Members, as a body, in accordance with Chapter 3 of Part 16 of the CompaniesAct 2006. Our audit work has been undertaken so that we might state to the Yavneh College's Members those matters weare required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we donot accept or assume responsibility to anyone other than the Yavneh College and its Members, as a body, for our auditwork, for this report, or for the opinion we have formed.

RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND AUDITORS

As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the Directors of YavnehCollege for the purposes of company law) are responsible for the preparation of the financial statements and for beingsatisfied that they give a true and fair view.

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

SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to givereasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error.This includes an assessment of: whether the accounting policies are appropriate to Yavneh College's circumstances andhave been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made bythe Trustees; and the overall presentation of the financial statements. In addition, we read all the financial and non-financialinformation in the Trustees' Report to identify material inconsistencies with the audited financial statements and to identifyany information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired byus in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies weconsider the implications for our report.

OPINION ON FINANCIAL STATEMENTS

In our opinion the financial statements:

give a true and fair view of the state of Yavneh College's affairs as at 31 August 2015 and of its incoming resources

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

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

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

Direction 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 forwhich the financial statements are prepared is consistent with the financial statements.

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF YAVNEH COLLEGE

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 accounting records have not been kept, or returns adequate for our audit have not been received from

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

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

Mr Gary Miller (Senior Statutory Auditor) for and on behalf of Price Bailey LLP

Chartered AccountantsStatutory Auditors Causeway House1 Dane StreetBishop's StortfordHertfordshireCM23 3BT18 December 2015

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

In accordance with the terms of our engagement letter dated 17 October 2011 and further to the requirements of theEducation Funding Agency (EFA) as included in the Academies Accounts Direction 2014 to 2015, we have carried out anengagement to obtain limited assurance about whether the expenditure disbursed and income received by Yavneh Collegeduring the year 1 September 2014 to 31 August 2015 have been applied to the purposes identified by Parliament and thefinancial transactions conform to the authorities which govern them.

This report is made solely to Yavneh College and EFA in accordance with the terms of our engagement letter. Our work hasbeen undertaken so that we might state to Yavneh College and EFA those matters we are required to state in a report andfor no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other thanYavneh College and EFA, for our work, for this report, or for the conclusion we have formed.

RESPECTIVE RESPONSIBILITIES OF YAVNEH FOUNDATION'S ACCOUNTING OFFICER AND THE REPORTINGACCOUNTANT

The Accounting Officer is responsible, under the requirements of Yavneh College's funding agreement with the Secretary ofState for Education dated 6 June 2011, and the Academies Financial Handbook extant from 1 September 2014, forensuring that expenditure disbursed and income received is applied for the purposes intended by Parliament and thefinancial 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 areto obtain limited assurance and report in accordance with our engagement letter and the requirements of the AcademiesAccounts Direction 2014 to 2015. We report to you whether anything has come to our attention in carrying out our workwhich suggests that in all material respects, expenditure disbursed and income received during the year 1 September 2014to 31 August 2015 have not been applied to purposes intended by Parliament or that the financial transactions do notconform to the authorities which govern them.

APPROACH

We conducted our engagement in accordance with the Academies Accounts Direction 2014 to 2015 issued by EFA. Weperformed 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 explanationsin 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 consequentlydoes not enable us to obtain assurance that we would become aware of all significant matters that might be identified in areasonable 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'sincome and expenditure.

The work undertaken to draw to our conclusion includes:

• Consideration and corroboration of the evidence supporting the Accounting Officer's statement on regularity, propriety and compliance.

• Evaluation of the general control environment of Yavneh College, extending the procedures required for financialstatements to include regularity.

• Discussions with and representations from the Accounting Officer and other key management personnel.

• An extension of substantive testing from our audit of the financial statements to cover matters pertaining to regularity, propriety and compliance in particular checking that selected items were appropriately authorised, and appropriate.

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INDEPENDENT REPORTING ACCOUNTANTS' ASSURANCE REPORT ON REGULARITY TO YAVNEHCOLLEGE 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 expendituredisbursed and income received during the year 1 September 2014 to 31 August 2015 have not been applied to purposesintended by Parliament and the financial transactions do not conform to the authorities which govern them.

Gary Miller (Reporting Accountant)

Price Bailey LLPChartered Accountants

18 December 2015

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

FOR THE YEAR ENDED 31 AUGUST 2015

Unrestrictedfunds

Restrictedfunds

Restrictedfixed asset

fundsTotalfunds

As restatedTotalfunds

Note2015

£2015

£2015

£2015

£2014

£

INCOMING RESOURCES

Incoming resources fromgenerated funds:

Voluntary income 2 - 1,389,777 - 1,389,777 1,306,719 Activities for generating funds 3 135,921 118,288 - 254,209 256,559 Investment income 4 266 - - 266 362Incoming resources from charitable

activities 5 - 4,461,187 19,728 4,480,915 4,302,247

TOTAL INCOMING RESOURCES 136,187 5,969,252 19,728 6,125,167 5,865,887

RESOURCES EXPENDED

Charitable activities 12,047 6,031,276 14,879 6,058,202 5,961,018Governance costs 6 - 18,905 - 18,905 13,500

TOTAL RESOURCES EXPENDED 8 12,047 6,050,181 14,879 6,077,107 5,974,518

NET INCOMING / (OUTGOING)RESOURCES BEFOREREVALUATIONS 124,140 (80,929) 4,849 48,060 (108,631)

Actuarial gains and losses ondefined benefit pension schemes - 18,000 - 18,000 (154,000)

NET MOVEMENT IN FUNDS FORTHE YEAR 124,140 (62,929) 4,849 66,060 (262,631)

Total funds at 1 September 2014 (49,482) (718,321) 17,024 (750,779) 2,731,852

Prior year adjustment (Note 17) - 3,220,000 - 3,220,000 -

TOTAL FUNDS AT 31 AUGUST2015 74,658 2,438,750 21,873 2,535,281 2,469,221

All activities relate to continuing operations.

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

The notes on pages 19 to 35 form part of these financial statements.

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YAVNEH COLLEGE

(A Company Limited by Guarantee)REGISTERED NUMBER: 07643712

BALANCE SHEETAS AT 31 AUGUST 2015

As restated2015 2014

Note £ £ £ £

FIXED ASSETS

Tangible assets 13 21,873 17,024

CURRENT ASSETS

Debtors: amounts falling due after more than oneyear 14 2,760,000 2,760,000

Debtors: amounts falling due within one year 14 684,362 635,536

Cash at bank and in hand 48,685 44,958

3,493,047 3,440,494

CREDITORS: amounts falling due within oneyear 15 (331,639) (319,297)

NET CURRENT ASSETS 3,161,408 3,121,197

TOTAL ASSETS LESS CURRENT LIABILITIES 3,183,281 3,138,221

CREDITORS: amounts falling due after morethan one year 16 (48,000) (108,000)

NET ASSETS EXCLUDING PENSION SCHEMELIABILITY 3,135,281 3,030,221

Defined benefit pension scheme liability 23 (600,000) (561,000)

NET ASSETS INCLUDING PENSION SCHEMELIABILITY 2,535,281 2,469,221

FUNDS OF THE ACADEMY

Restricted funds :

Restricted funds 18 3,038,750 3,062,679

Restricted fixed asset funds 18 21,873 17,024

Restricted funds excluding pension liability 3,060,623 3,079,703

Pension reserve (600,000) (561,000)

Total restricted funds 2,460,623 2,518,703

Unrestricted funds 18 74,658 (49,482)

TOTAL FUNDS 2,535,281 2,469,221

The financial statements were approved by the Trustees, and authorised for issue,on 15 December 2015 and are signed ontheir behalf, by:



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CASH FLOW STATEMENTFOR THE YEAR ENDED 31 AUGUST 2015

As restated 2015 2014

Note £ £

Net cash flow from operating activities 20 12,510 (37,088)

Returns on investments and servicing of finance - interest received 266 362

Capital expenditure - purchase of fixed assets (9,049) -

INCREASE/(DECREASE) IN CASH IN THE YEAR 3,727 (36,726)

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


£ £

Increase/(decrease) in cash in the year 3,727 (36,726)

MOVEMENT IN NET FUNDS IN THE YEAR 3,727 (36,726)

Net funds at 1 September 2014 (as restated) 44,958 81,684

NET FUNDS AT 31 AUGUST 2015 48,685 44,958


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NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 AUGUST 2015

1. ACCOUNTING POLICIES

1.1 Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention. The financial statementshave been prepared in accordance with the Statement of Recommended Practice, 'Accounting and Reportingby Charities' published in March 2005 (SORP), the Academies Accounts Direction 2013 to 2014 issued byEducation Funding Agency (EFA), applicable accounting standards and the Companies Act 2006.

1.2 Company status

Yavneh College is a company limited by guarantee. Those Members who are Trustees are noted on page 1.In the event of Yavneh College being wound up, the liability in respect of the guarantee is limited to £10 perMember of Yavneh College.

1.3 Fund accounting

Unrestricted income funds represent those resources which may be used towards meeting any of thecharitable objects of Yavneh College at the discretion of the Trustees.

Restricted fixed asset funds are resources which are to be applied to specific capital purposes imposed byfunders 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 DfE.

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

1.4 Incoming resources

All incoming resources are included in the Statement of Financial Activities when Yavneh College hasentitlement to the funds, certainty of receipt and the amount can be measured with sufficient reliability. Forlegacies, entitlement is the earlier of the academy being notified of an impending distribution or the legacybeing received.

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

General Annual Grant (GAG) is recognised in full in the year for which it is receivable and any unspent amountis 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 theyare expended. Unspent amounts of capital grant are reflected in the balance in the restricted fixed asset fund.

Any donated services and gifts in kind provided to Yavneh College are recognised at their open market valuein the period in which they are receivable as incoming resources, where the benefit to Yavneh College can bereliably measured. An equivalent amount is included as expenditure under the relevant heading in theStatement of Financial Activities, except where the gift in kind was a fixed asset in which case the amount isincluded in the appropriate fixed asset category and depreciated over the useful economic life in accordancewith Yavneh College's policies.

Donations are recognised on a receivable basis where there is certainty of receipt and the amount can bereliably measured.

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

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1. ACCOUNTING POLICIES (continued)

1.5 Resources expended

Expenditure is recognised in the period in which a liability is incurred and has been classified under headingsthat aggregate all costs related to that category. Where costs cannot be directly attributed to particularheadings they have been allocated on a basis consistent with the use of resources, with central staff costsallocated 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.

Charitable activities are costs incurred in Yavneh College's educational operations.

Governance costs include the costs attributable to Yavneh College's compliance with constitutional andstatutory requirements, including audit, strategic management and Trustees' meetings and reimbursedexpenses.

All resources expended are inclusive of irrecoverable VAT.

1.6 Going concern

The Trustees assess whether the use of going concern is appropriate, i.e. whether there are any materialuncertainties related to events or conditions that may cast significant doubt on the ability of Yavneh Collegecontinue as a going concern. The Trustees make this assessment in respect of a period of one year from thedate of approval of the financial statements.

1.7 Tangible fixed assets and depreciation

All assets costing more than £2,000 are capitalised.

Where tangible fixed assets have been acquired with the aid of specific grants, either from the government orfrom the private sector, they are included in the Balance Sheet at cost and depreciated over their expecteduseful economic life. The related grants are credited to a restricted fixed asset fund in the Statement ofFinancial Activities and are carried forward in the Balance Sheet. Depreciation on such assets is charged tothe restricted fixed asset fund in the Statement of Financial Activities so as to reduce the fund over the usefuleconomic life of the related asset on a basis consistent with Yavneh College's depreciation policy.

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to writeoff the cost of fixed assets, less their estimated residual value, over their expected useful lives on the followingbases:

Plant and machinery - 5 years straight lineMotor vehicles - 5 years straight lineComputer equipment - 3 years straight line

1.8 Operating leases

Rentals under operating leases are charged to the Statement of Financial Activities on a straight line basisover the lease term.

1.9 Taxation

Yavneh College is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 andtherefore it meets the definition of a Charitable Company for UK corporation tax purposes. Accordingly, YavnehCollege is potentially exempt from taxation in respect of income or capital gains received within categoriescovered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of ChargeableGains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

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1. ACCOUNTING POLICIES (continued)

1.10 Pensions

Retirement benefits to employees of Yavneh College are provided by the Teachers' Pension Scheme ("TPS")and the Local Government Pension Schem Yavneh Foundation ("LGPS"). These are defined benefit schemes,and the assets are held separately from those of Yavneh College.

The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions overemployees' working lives with Yavneh College in such a way that the pension cost is a substantially levelpercentage of current and future pensionable payroll. The contributions are determined by the GovernmentActuary on the basis of quinquennial valuations using a prospective benefit method. As stated in note 23, theTPS is a multi-employer scheme and Yavneh College is unable to identify its share of the underlying assetsand liabilities of the scheme on a consistent and reasonable basis. The TPS is therefore treated as a definedcontribution 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 Yavneh College in separatetrustee administered funds. Pension scheme assets are measured at fair value and liabilities are measured onan actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate ofreturn on a high quality corporate bond of equivalent term and currency to the liabilities. The actuarialvaluations are obtained at least triennially and are updated at each balance sheet date. The amounts chargedto 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 ofFinancial Activities if the benefits have vested. If the benefits have not vested immediately, the costs arerecognised over the period vesting occurs. The expected return on assets and the interest cost are shown asa pension interest adjustment in note 7. Actuarial gains and losses are recognised immediately in other gainsand losses.

2. OTHER VOLUNTARY INCOME

Restrictedfunds

Totalfunds

14 monthperiod ended

31 August2015

£2015

£2014

£

Donations 929,777 929,777 825,493Donations in kind (see note 25) 460,000 460,000 460,000Grants - - 21,226

Voluntary income 1,389,777 1,389,777 1,306,719

3. ACTIVITIES FOR GENERATING FUNDS

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2015£

2015£

2015£

2014£

Hire of facilities 50,265 - 50,265 68,534Other income 85,656 118,288 203,944 188,025

135,921 118,288 254,209 256,559

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4. INVESTMENT INCOME

Unrestrictedfunds

Totalfunds

Totalfunds

2015£

2015£

2014£

Bank interest 266 266 362

5. FUNDING FOR YAVNEH COLLEGE'S EDUCATIONAL OPERATIONS

Restrictedfunds

Totalfunds

Totalfunds

2015£

2015£

2014£

DfE/EFA grants

General Annual Grant (GAG) 4,314,648 4,314,648 4,173,845Other DfE / EFA grants 104,064 104,064 63,014

4,418,712 4,418,712 4,236,859

Other government grants

Local authority grants 62,203 62,203 47,179Other grants - - 18,209

62,203 62,203 65,388

4,480,915 4,480,915 4,302,247

6. GOVERNANCE COSTS

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2015£

2015£

2015£

2014£

Auditors' remuneration - 7,750 7,750 7,500Auditors' non audit costs - 4,155 4,155 4,100Other governance costs - 7,000 7,000 1,900

- 18,905 18,905 13,500

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7. CHARITABLE ACTIVITIES - YAVNEH COLLEGE'S EDUCATIONAL OPERATIONS

Totalfunds


2015£

2014£

DIRECT COSTS

Wages and salaries 2,922,367 2,907,154National insurance 172,083 194,499Pension cost 370,582 385,369Educational supplies 284,214 288,662Examination fees 89,646 85,670Staff development 19,967 23,682Educational consultancy 5,705 10,943Travel and subsistence 404 931Other costs 163,993 116,985Supply teaching 38,784 27,397Compensation payments - 8,893

4,067,745 4,050,185

SUPPORT COSTS

Wages and salaries 373,328 327,900National insurance 46,371 48,400Pension cost 124,996 85,980Depreciation 4,200 10,103Pension interest adjustment 8,000 10,000Technology costs 163,524 201,617Other Costs 5,028 5,363Recruitment and support 33,103 19,250Maintenance of premises and machinery 143,727 130,994Cleaning 108,789 111,227Notional rent (see note 25) 460,000 460,000Rates 10,337 21,390Energy 100,953 56,895Insurance 34,010 68,869Security 119,571 106,993Transport 3,399 4,940Catering 25,131 24,554Occupancy costs 85,708 114,081Bank interest and charges 3,645 2,317Telephone expenses 18,831 15,193Printing, postage and stationery 74,033 58,194Professional fees 43,773 26,573

1,990,457 1,910,833

6,058,202 5,961,018

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8. RESOURCES EXPENDED

Staff costs Non pay expenditure TotalAs restated

TotalPremises Other costs

2015£

2015£

2015£

2015£

2014£

Provision of education - directcosts 3,503,816 - 563,929 4,067,745 4,050,185

Provision of education -support costs 544,695 1,435,282 10,480 1,990,457 1,910,833

Charitable activities 4,048,511 1,435,282 574,409 6,058,202 5,961,018

Governance - - 18,905 18,905 13,500

4,048,511 1,435,282 593,314 6,077,107 5,974,518

9. NET INCOMING / (OUTGOING) RESOURCES

This is stated after charging:

2015 2014 £ £

Depreciation of tangible fixed assets:- owned by or leased to the Academy 4,200 10,103

Governance Internal audit costs 1,500 1,500Operating Lease Payments - Other - 62,090

10. STAFF

a. Staff costs

Staff costs were as follows:

2015 2014 £ £

Wages and salaries 3,295,695 3,235,053Social security costs 218,454 242,899Other pension costs (Note 23) 495,578 471,349

4,009,727 3,949,301Supply teacher costs 38,784 27,396Compensation payments - 8,893

4,048,511 3,985,590

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10. STAFF (continued)

b. Staff numbers

The average number of persons (including the Senior Leadership Team) employed by Yavneh College during theyear expressed as full time equivalents was as follows:

2015 2014 No. No.

Teachers 58 58Administration and support 34 31Management 7 7

99 96

c. Higher paid staff

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

2015 2014 No. No.

In the band £ 60,001 - £ 70,000 1 1In the band £ 70,001 - £ 80,000 1 0In the band £ 80,001 - £ 90,000 0 1In the band £ 90,001 - £100,000 1 1

All of the above employees participated in the Teachers' Pension Scheme. During the year ended 31 August 2015pension contributions for these staff amounted to £33,153 (2014 - £34,322).

11. TRUSTEES' REMUNERATION AND EXPENSES

One or more Trustees has been paid remuneration or has received other benefits from an employment with theAcademy Trust. The Headteacher and other staff Trustees only receive remuneration in respect of services theyprovide undertaking the roles of Headteacher and staff members under their contracts of employment, and not inrespect of their role as Trustees. The value of Trustees' remuneration and other benefits was as follows:

S Lewis (Headteacher)Remuneration £95,000-£100,000 (2014: £90,000-£95,000)Employer’s Pension contribution £10,000-£15,000 (2014: £10,000-£15,000)

A Newbey (Staff Governor)Remuneration £40,000-£45,000 (2014: £35,000-£40,000)Employer’s Pension contribution £5,000-£10,000 (2014: £0-£5,000)

H SaundersRemuneration £25,000-£30,000 (2014: £40,000-£45,000)Employer’s Pension contribution £0-£5,000 (2014: £0-£5,000)

During the period 31 August 2015, no Trustees received any reimbursement of expenses for their role as Trustees(2014: £NIL).

Other related party transactions involving the Trustees are set out in note 25.

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12. TRUSTEES' AND OFFICERS' INSURANCE

In accordance with normal commercial practice the Academy has purchased insurance to protect Trustees andofficers from claims arising from negligent acts, errors or omissions occurring whilst on Academy business. Theinsurance provides cover up to £1,000,000 on any one claim and the cost for the year ended 31 August 2015 formedpart of the overall insurance cover for Yavneh College.

13. TANGIBLE FIXED ASSETS

Plant andmachinery Motor vehicles

Computerequipment Total

£ £ £ £

Cost

At 1 September 2014 17,096 21,000 7,453 45,549Additions - - 9,049 9,049

At 31 August 2015 17,096 21,000 16,502 54,598

Depreciation

At 1 September 2014 6,838 16,200 5,487 28,525Charge for the year - 4,200 - 4,200

At 31 August 2015 6,838 20,400 5,487 32,725

Net book value

At 31 August 2015 10,258 600 11,015 21,873

At 31 August 2014 10,258 4,800 1,966 17,024

Yavneh College occupies the land and buildings provided to it by Yavneh Foundation Trust under a license. Havingconsidered the fact that Yavneh College occupies the land and buildings by a license that transfers to the Academyno rights or control over the site, save that of occupying it at the will of the Trustees of Yavneh Foundation Trust, theTrustees of Yavneh College have concluded that the value of the land and buildings occupied by Yavneh College willnot be recognised or valued within fixed assets.

14. DEBTORS


£ £Due after more than one year

Other debtors (see note 25) 2,760,000 2,760,000


£ £Due within one year

Trade debtors 91,607 103,872VATOther debtors (see note 25)

16,818460,000

41,312460,000

Prepayments and accrued income 115,937 30,352

684,362 635,536

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15. CREDITORS:Amounts falling due within one year

2015 2014 £ £

Trade creditors 185,283 151,981Other taxation and social security 69,104 74,622Other creditors 60,060 60,060Accruals and deferred income 17,192 32,634

331,639 319,297

£Deferred income

Deferred income at 1 September 2014 10,884Resources deferred during the year 1,800Amounts released from previous years (10,884)

Deferred income at 31 August 2015 1,800

Deferred income relates to payments for the school bus service, school trips and hire of school premisescommencing in September.

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

2015 2014 £ £

Other creditors 48,000 108,000

17. PRIOR YEAR ADJUSTMENT

A prior year adjustment has been made to recognise a donation in kind receivable which represents the informalcommitment by Yavneh Foundation Trust to provide land and buildings on a rent free basis for a minimum of afurther 7 years which had not been previously recognised.

The effect has been to recognise an asset valued at £3,220,000 from the date of conversion to an Academy Trustand increase total funds by this sum at 31 August 2014.

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18. STATEMENT OF FUNDSBroughtforward

as restatedIncoming

resourcesResourcesexpended

Transfersin/out

Gains/(losses)

Carriedforward

£ £ £ £ £ £

Unrestricted funds

General funds - allfunds (49,482) 136,187 (12,047) - - 74,658

Restricted fundsGeneral Annual

Grant (GAG) (157,321) 4,314,647 (4,338,576) - - (181,250)Pupil premium - 84,336 (84,336) - - -SEN - 62,203 (62,203) - - -Restricted donations - 872,603 (872,603) - - -Other restricted

grants - 175,463 (175,463) - - -Donation in kind (see

note 25) 3,220,000 460,000 (460,000) - - 3,220,000Pension reserve (561,000) - (57,000) - 18,000 (600,000)

2,501,679 5,969,252 (6,050,181) - 18,000 2,438,750

Restricted fixed asset funds

Restricted fixed assetfunds - all funds 17,024 - (4,200) 9,049 - 21,873

Devolved FormulaCapital - 19,728 (10,679) (9,049) - -

17,024 19,728 (14,879) - - 21,873

Total restricted funds 2,518,703 5,988,980 (6,065,060) - 18,000 2,460,623

Total of funds 2,469,221 6,125,167 (6,077,107) - 18,000 2,535,281

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

General annual grant (GAG)

This represents funding from the EFA to cover the costs of recurrent expenditure.

Under the Funding Agreement with the Secretary of State, the Academy was not subject to a limit on the amount ofGAG that it could carry forward at 31 August 2015.

Pupil premium

This represents funding from Hertfordshire County Council and it is used to help raise achievement and improveoutcomes for pupils from low income families who are elibigle for free school meals.

SEN funding

This represents funding from various local authorities and it is used towards the education of pupils with specialeducational needs.

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18. STATEMENT OF FUNDS (continued)

Restricted donations

This represents donations from Yavneh Foundation Trust which contributes to the costs of Jewish Studies teachingand the additional security costs of the school.

Other restricted grants

This represents grants received from other bodies which are restricted in nature.

Pension reserve

This fund represents Yavneh College’s share of the deficit on the Local Government Pension Scheme (LGPS)transferred to Yavneh College on conversion from a state controlled school.

Restricted fixed asset fund

Restricted fixed asset funds are resources which are to be applied to specific capital purposes imposed by the DfEwhere the asset acquired or created is held for a specific purpose.

Devolved formula capital (DFC) fund

Yavneh College is to use the DFC allocation to maintain and improve its buildings and facilities.

SUMMARY OF FUNDSBroughtforward

As restatedIncoming

resourcesResourcesexpended

Transfersin/out

Gains/(losses)

Carriedforward

£ £ £ £ £ £

General funds (49,482) 136,187 (12,047) - - 74,658Restricted funds 2,501,679 5,969,252 (6,050,181) - 18,000 2,438,750Restricted fixed asset

funds 17,024 19,728 (14,879) - - 21,873

2,469,221 6,125,167 (6,077,107) - 18,000 2,535,281

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19. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestrictedfunds

Restrictedfunds

Restrictedfixed asset

fundsTotalfunds


2015£

2015£

2015£

2015£

2014£

Tangible fixed assets - - 21,873 21,873 17,024Debtors due after more than 1 year - 2,760,000 - 2,760,000 2,760,000Current assets 74,658 658,388 - 733,046 680,495Creditors due within one year - (331,638) - (331,638) (319,298)Creditors due in more than one

year - (48,000) - (48,000) (108,000)Provisions for liabilities and

charges - (600,000) - (600,000) (561,000)

74,658 2,438,750 21,873 2,535,281 2,469,221

20. NET CASH FLOW FROM OPERATING ACTIVITIES

As restated2015 2014

£ £

Net incoming resources before revaluations 48,060 (108,631)Returns on investments and servicing of finance (266) (362)Depreciation of tangible fixed assets 4,200 10,103Increase in debtors (48,826) (33,752)(Decrease)/increase in creditors (47,658) 42,554FRS 17 adjustments 57,000 53,000

Net cash inflow/(outflow) from operations 12,510 (37,088)

21. ANALYSIS OF CHANGES IN NET FUNDS

1 September Cash flow

Othernon-cashchanges 31 August

2014 2015£ £ £ £

Cash at bank and in hand: 44,958 3,727 - 48,685

Net funds 44,958 3,727 - 48,685

22. MEMBERS' LIABILITY

Each Member of the Charitable Company undertakes to contribute to the assets of the Charitable Company in theevent of it being wound up while they are a Member, or within one year after they cease to be a Member suchamount as may be required, not exceeding £10, for the debts and liabilities contracted before they ceased to be aMember.

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23. PENSION COMMITMENTS

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

The pension costs are assessed in accordance with the advice of independent qualified actuaries. The latestactuarial valuation of the TPS related to the period ended 31 March 2012 and of the LGPS 31 March 2013.

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

Teachers' Pension Scheme

Introduction

The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by theTeachers' Pensions Regulations (2010) and, from 1 April 2014, by the Teachers’ Pension Scheme Regulations2014. Membership is automatic for full-time teachers in academies and, from 1 January 2007, automatic for teachersin part-time employment following appointment or a change of contract, although they are able to opt out.

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

Valuation of the Teachers’ Pension Scheme

Not less than every four years the Government Actuary, using normal actuarial principles, conducts a formalactuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap)Directions 2014 published by HM Treasury. 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 andmany other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2012 and in accordancewith the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014. The valuation report waspublished by the Department for Education on 9 June 2014. The key elements of the valuation and subsequentconsultation are:

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

charge (currently 14.1%);

total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service to

the effective date of £191,500 million, and notional assets (estimated future contributions together with the

notional investments held at the valuation date) of £176,600 million giving a notional past service deficit of

£14,900 million;

an employer cost cap of 10.9% of pensionable pay will be applied to future valuations; and

the assumed real rate of return is 3.0% in excess of prices and 2% in excess of earnings. The rate of real

earnings growth is assumed to be 2.75%. The assumed nominal rate of return is 5.06%

During the year the employer contribution rate was 14.1%. The TPS valuation for 2012 determined an employer rateof 16.4% from September 2015, which will be payable during the implementation period until the next valuation as atMarch 2016, whereupon the employer contribution rate is expected to be reassessed and will be payable from 1 April2019.

The pension costs paid to TPS in the period amounted to £535,276 (2014: £500,729).

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

Under the definitions set out in Financial Reporting Standard (FRS 17) Retirement Benefits, the TPS is a multi-employer pension scheme. Yavneh College has accounted for its contributions to the scheme as if it were a definedcontribution scheme. Yavneh College has set out above the information available on the scheme.

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23. PENSION COMMITMENTS (continued)

Local Government Pension Scheme

The LGPS is a funded defined benefit scheme, with assets held in separate trustee-administered funds. The totalcontribution made for the year ended 31 August 2015 was £162,000, of which employer's contributions totalled£124,000 and employees' contributions totalled £38,000. The agreed contribution rates for future years are 26.6%for employers and between 5.5 and 12.5% for employees.

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

The amounts recognised in the Balance Sheet are as follows:

2015 2014 £ £

Present value of funded obligations (1,537,000) (1,299,000)Fair value of scheme assets 937,000 738,000

Net liability (600,000) (561,000)

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

2015 2014 £ £

Current service cost (173,000) (129,000)Interest on obligation (52,000) (42,000)Expected return on scheme assets 44,000 32,000

Total (181,000) (139,000)

Actual return on scheme assets 38,000 68,000

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

2015 2014 £ £

Opening defined benefit obligation 1,299,000 841,000Current service cost 173,000 129,000Interest cost 52,000 42,000Contributions by scheme participants 38,000 35,000Actuarial (gains)/losses (24,000) 253,000Benefits paid (1,000) (1,000)

Closing defined benefit obligation 1,537,000 1,299,000

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

2015 2014 £ £

Opening fair value of scheme assets 738,000 487,000Expected return on assets 44,000 32,000Actuarial (losses) and gains (6,000) 99,000Contributions by employer 124,000 86,000Contributions by employees 38,000 35,000Benefits paid (1,000) (1,000)

937,000 738,000

The cumulative amount of actuarial gains and losses recognised in the Statement of Total Recognised Gains andLosses was £229,000 loss (2014 - £247,000 loss.

Yavneh College expects to contribute £118,000 to its Defined Benefit Pension Scheme in 2016.

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

2015 2014

Equities %62.00 %67.00Bonds %27.00 %23.00Property %7.00 %7.00Cash %4.00 %3.00

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

2015 2014

Discount rate for scheme liabilities %3.80 %3.70Expected return on scheme assets at 31 August %3.80 %5.40Rate of increase in salaries %4.10 %4.00Rate of increase for pensions in payment / inflation %2.70 %2.70

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

2015 2014

Retiring todayMales 22.3 22.3Females 24.5 24.5

Retiring in 20 yearsMales 24.3 24.3Females 26.7 26.7

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

Defined benefit pension schemes

2015 2014 2013 2012 £ £ £ £

Defined benefit obligation (1,537,000) (1,299,000) (841,000) (643,000)Scheme assets 937,000 738,000 487,000 318,000

Deficit (600,000) (561,000) (354,000) (325,000)

Experience adjustments on scheme assets (6,000) 99,000 35,000 (12,000)

24. OPERATING LEASE COMMITMENTS

At 31 August 2015 Yavneh College had annual commitments under non-cancellable operating leases as follows:

2015 2014£ £

Expiry date:

Within 1 year 167 17,485Between 2 and 5 years 25,609 26,275

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25. RELATED PARTY TRANSACTIONS

Owing to the nature of Yavneh College's operations and the composition of the Board of Trustees being drawn fromlocal public and private sector organisations, transactions may take place with organisations in which a Trustees hasan interest. All transactions involving such organisations are conducted at arm's length and in accordance withYavneh College's financial regulations and normal procurement procedures.

Any transactions where the Trustee has a pecuniary interest are only undertaken in accordance with the 'at cost'principle stated in the Academies Financial Handbook.

Yavneh College operates from land and buildings provided rent free by Yavneh Foundation Trust. In accordancewith the Academies Accounts Direction 2014 to 2015 the Trustees of Yavneh College have concluded that, on thebasis of the circumstances existing at the year end, and based upon the probable course of subsequent events,Yavneh College does have an asset representing the future value of occupying the property free of rent. TheTrustees of Yavneh College consider that the appropriate period for which to recognise this asset is the length of thenotice period detailed in the Funding Agreement with the Secretary of State, i.e. 7 years. The Trustees of YavnehCollege estimate that the cost of renting equivalent buildings would be £460,000 per annum, on this basis a donationfrom Yavneh Foundation Trust of £460,000 is shown in the accounts together with a notional expense of the sameamount. In addition, included within debtors is a donation in kind receivable of £3,220,000 representing the informalcommitment by Yavneh Foundation Trust to provide the land and buildings rent free for a minimum of a further 7years.

In addition Yavneh College received £839,728 (2014: £778,747) from Yavneh Foundation Trust, as a restricteddonation, as noted in note 18. The balance due from them at the year end was £89,880 (2014: £89,146).

Mr M A Gordon, a governor up until 31 August 2014 and a trustee of Yavneh Foundation Trust, is a director of StGiles Insurance & Finance Services Limited, the insurance broker used by Yavneh College. During the year £17,514(2014: £67,055) was paid to St Giles Insurance & Finance Services Limited for insurance costs which will include anelement of brokerage fees retained by them.

The above transaction was carried out at nil profit to St Giles Insurance & Finance Services Limited.

There were no other related party transactions during the period ended 31 August 2015.

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1508FSS Final YC - Yavneh College, Borehamwood · 8/31/2015 · FOR THE YEAR ENDED 31 AUGUST 2015 The Trustees present their Annual Report with the financial statements and Auditors’