BUTTSBURY JUNIOR SCHOOL...company for the period 1st September 2012 – 31st August 2013. Structure, Governance and Management Constitution The academy trust is a company limited by

Registered number: 07601846

BUTTSBURY JUNIOR SCHOOL

GOVERNORS' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2013


(A Company Limited by Guarantee)

CONTENTS

Page

Reference and Administrative Details of the Academy, its Governors and Advisers 1

Governors' Report 2 - 5

Governance Statement 6 - 7

Statement on Regularity, Propriety and Compliance 8

Governors' Responsibilities Statement 9

Independent Auditors' Report 10 - 11

Independent Reporting Accountant's Assurance Report on Regularity 12 - 13

Statement of Financial Activities 14

Balance Sheet 15

Cash Flow Statement 16

Notes to the Financial Statements 17 - 33



REFERENCE AND ADMINISTRATIVE DETAILS OF THE ACADEMY, ITS GOVERNORS AND ADVISERSFOR THE YEAR ENDED 31 AUGUST 2013

Governors Mr V Collier, Principal (resigned 31 December 2012)1

Mrs A Robinson, Principal (appointed 1 January 2013)1

Ms H Stuart, Chair of Governing Body1

Ms H Baker, Associate MemberMrs T Cater, Parent GovernorMs S Cis, Associate Governor1

Mrs F Cripps, Staff Governor1

Dr A Dulic-Sills, Community GovernorMr J Fairclough, Parent GovernorMiss F Ferguson, Staff Governor (appointed 9 September 2013)Mrs P Garnett, Community GovernorMrs J Gray, Co-Opted GovernorMr S Harvey, Community Governor (appointed 10 July 2013)Mr D Hayden, Community Governor1

Mr D Howell, Parent Governor1

Mrs C Jacobs, Staff Governor (resigned 19 July 2013)Mr A Parker, Community Governor1

Mr L Sheppard, Community Governor1

Mr N Williamson, Parent Governor

1 Member of the Finance Committee

Company registerednumber 07601846

Principal and registeredoffice

Norsey View DriveBillericayEssexCM12 0QR

Chief executive officer(Headteacher)

Mrs A Robinson

Independent auditors Price Bailey LLPChartered AccountantsStatutory AuditorsCauseway House1 Dane StreetBishop's StortfordHertfordshireCM23 3BT

Page 1



GOVERNORS' REPORTFOR THE YEAR ENDED 31 AUGUST 2013

The governors present their annual report together with the financial statements and auditor’s reports of the charitablecompany for the period 1st September 2012 – 31st August 2013.

Structure, Governance and Management

ConstitutionThe academy trust is a company limited by guarantee and an exempt charity. The charitable company’s memorandum andarticles of association are the primary governing documents of the academy trust. The trustees of Buttsbury Junior Schoolare also directors of the charitable company for the purposes of company law. The charitable company is known asButtsbury Junior School.

Details of the governors who served throughout the year (except as noted) are included in the Reference and AdministrativeDetails section of the report.

Members’ LiabilityEach 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.

Governors’ IndemnitiesAcademy insurers encompass all relevant insurance including Governor third party indemnity provision.

Principal ActivitiesThe principal activity of the Academy is the operation of Buttsbury Junior School to provide quality education for studentsinhabiting Billericay and the surrounding area.

Methods, policies and procedures for recruitment, appointment, induction and training of new governorsGovernors are appointed for a fixed term. The Head teacher is an ex officio member of the governing body. Parentgovernors and the staff governors are elected to office or appointed if there are insufficient candidates offering themselvesfor election.

New governors are required to attend an induction programme that may involve a tour of the school and meetings withstudents and staff. They will be provided with copies of the relevant policy and procedure documents that are appropriate tothe role they undertake as governors with particular emphasis on the committee work that they will undertake.

Organisational StructureThe governors are responsible for setting general policy, adopting an annual plan and budget, monitoring the Academy bythe use of budgets and making major decisions about the direction of the Academy, capital expenditure and senior staffappointments.

The Leadership Team consists of the Headteacher, assistant Headteachers, year group heads, Inclusion manager and theschool business manager. This team controls the Academy at an executive level, implementing policies and reporting to theGoverning Body. The Leadership Team is responsible for the day to day operation of the Academy, in particular organisingstaff, resources and children. They are responsible for the authorisation of spending within agreed budgets and for theappointment of staff, following vetting and safeguarding recruitment processes.

A significant change to the Leadership Team during the year was that Mrs Robinson took over as Headteacher in January2013, following Mr Collier’s retirement.

The Headteacher is the Accounting Officer.

Risk ManagementOwing to the nature of the Academy’s operations and the composition of the board of governors being drawn from localpublic and private sector organisations, it is possible that from time to time transactions will take place with organisations inwhich a member of the board of governors may have an interest. Further, the Academy has formal or informalarrangements with several Connected Organisations. These include BCT, Billericay SCITT, Teaching Schools Alliance, FirstStrokes Swimming, Winger Sports, Working for Children and William de Ferrers Sports Partnership. All transactionsinvolving these organisations are conducted at arm’s length and in accordance with the Academy’s financial regulations andnormal procedures.

The trustees report that the Academy’s financial and internal controls conform to guidelines issued by the EFA, and thatimprovements to the wider framework of systems dealing with business risk and risk management strategy continue to bemade and formally documented.

Page 2



GOVERNORS' REPORT (continued)FOR THE YEAR ENDED 31 AUGUST 2013

Related PartiesOwing to the nature of the Academy’s operations and the composition of the board of governors being drawn from localpublic and private sector organisations, it is possible that from time to time transactions will take place with organisation s inwhich a member of the board of governors may have an interest. All transactions involving such organisations areconducted at arm’s length and in accordance with the Academy’s financial regulations and normal procedures.

Objectives and Activities

Objects and aimsThese are to establish high quality; teaching, learning and assessment; curriculum provision and other activities; care,guidance and support of students; leadership and management.

In addition, the Academy seeks to ensure high levels of student achievement and standards; personal development andwell-being of students; effectiveness, efficiency and inclusiveness.

Public BenefitThe governors confirm that they have referred to and follow the guidance contained in the Charity Commission’s guidanceon public benefit

Achievements and PerformanceThe Academy continued its mission to ensure that all students achieved their potential; it provided a wide range of extra-curricular activities, developed and retained suitable staff and successfully prepared students for transfer to secondaryeducation.

Academic performanceForecast pupil progress in January 2013 was below expectations, so an action plan was put into effect to address this.Ofsted visited in May and confirmed the pupil progress issue. The report rated the Academy as ‘Requires improvement’ butrecognised that many actions to redress the situation were already in hand.

As a result of the actions taken, results in the 2013 End of Key Stage Standard Assessment Tests have improved since lastyear and were significantly better than the January forecasts. Highlights were:• Attainment at Level 4 in reading and maths was the highest it has been in the past three years, with attainment at

Level 5 being equally high.• Progress has improved, with 89% of children making at least two levels progress in writing, 90% in reading and 90%

in maths. Furthermore, 32% of children made three levels progress in maths and 22% made three levels progress in reading.

Sporting performanceThe various sports teams had another very successful year:• The Swimming Team won the Billericay and District Gala• The Athletics Team won the Billericay and District Athletics competition.• We were also very successful in a number of other sports, such as dodge ball, basketball, football, tennis and indoor

athletics, qualifying in almost every event for the next stage of the competition.

Performance in MusicThe school has had another very successful year in terms of music with a large number of children passing externalexaminations in a wide range of instruments. Our cellists reached a particularly high standard, with one working at Grade 5.

On the Facilities front:• From cost-savings identified in the roof replacement project we have replaced the old fire alarm system with a

system in line with current regulations• The entrance hall has been remodelled to redirect the staircase into the secure part of the school and provide a

welcoming waiting area outside the secure zone with access to the office. • With the support of the Friends Association, all classrooms now have new tables and chairs• The old dining tables have been replaced by fold-away units that have simplified and streamlined the process of

setting up hall for lunch and clearing away afterwards • New photocopiers and printers have been installed which should result in a significant saving in printing costs for the

Academy

Page 3




Key performance indicators

Academic Indicators Target Actual National

Pupils making two levels progress in Maths 90% 91% 88%

Pupils making two levels progress in Reading 91% 90% 88%

Pupils making two levels progress in Writing (English) 88% 91%

Value Add score – all subjects 100%+ 99.20% 100%

Attendance level 96.00% 96.80% 94.70%

Financial Indicators Target Actual National

Number on roll (from GAG Statement) 490+ 489 257

Staffing costs as a percentage of GAG Income 85.50% 87.10% 75.50%

Staffing costs as a percentage of total expenditure 80.30% 77.90% 72.30%

Financial Review

Source of FundingThe principal source of funding for the Academy is the General Annual Grant (GAG) funding that it receives from the EFA.For the period ended 31st August 2013 the Academy received £1,659,060 in GAG funding. A high percentage of thisfunding is spent on wages, salaries and support costs to deliver the Academy’s primary objective of the provision ofeducation.

Principal risks and uncertaintyThe trustees assess the principal risks and uncertainties facing the Academy as follows:• Staff retention: In order to deliver the best quality learning experience for our children it is critical we maintain the

best staff and continue to keep them motivated and enthusiastic. However, it is not felt that there are any immediatethreats in this regard.

• Material decrease in income affecting provision: Highly unlikely. The budget for 2013/14 is sound, and the longer-term financial plan shows adequate contingency against unwelcome future developments.

• Falling rolls: If the number on roll was to fall unexpectedly it could have an adverse impact on the Academy’s ability to balance the budget. However, the Academy has traditionally enjoyed a full roll and expects to continue to do so.

• Staff recruitment: conversion to academy status has not affected the attractiveness of the Academy to potential new staff, with each vacancy having received a flood of applications.

• Building repairs: the main buildings have exceeded their originally anticipated useful life and thus may require expected repair and renovation that has not been budgeted for.

• Bank balances & investments: there is no significant risk other than an institution ceasing to trade. • Debtors: there are no material debtors.• The Academy’s credit rating is not in jeopardy, though it has no need for credit facilities.• The Academy’s cash flow is healthy and long-term financial planning predicts it will remain so.

The unfavourable Ofsted rating received in May 2013 could potentially have an impact on some of the above risks (e.g.Staff Retention, Falling Rolls, Staff Recruitment), but to date there is no evidence of any such adverse impact.

Reserves policyThe governors review the reserve levels of the Academy annually. This review encompasses the nature of income andexpenditure streams, the need to match income with commitments and the nature of reserves.

The Academy’s current level of free reserves (total funds less the amount held in fixed assets and restricted funds) is£276,733. Of this, £123,775 represents funds transferred from the LA on becoming an academy. This balance is viewed asa long-term reserve against significant emergency needs. Governors have earmarked £30,000 towards a project toreinstate the school library and £40,000 towards a desire to in due course replace the existing demountable classroomswith a permanent extension to the main building. The remaining £45,000 represents about 2% of the annual budget andsupports cashflow needs plus it provides a buffer for adverse variance from the planned budget.

Page 4




Due to the accounting rules for the Local Government Pension Scheme under FRS17, the Academy is recognising asignificant pension fund deficit of £598,000. This does not mean that an immediate liability for this amount crystallises.Such a deficit generally results in a cash flow effect in the form of increased employer contributions over a number of years.The Academy is currently making payments as agreed with scheme administrators towards the deficit and it is envisagedthat should this amount be increased it will be met from the Academy’s budgeted annual income. The recognition of thisdeficit has no direct impact on the free reserves of the Academy Trust.

Investment PolicyThe Academy will regularly monitor cash flow and current a/c balances to ensure immediate financial commitments can bemet (payroll and payments runs) and that the current account has adequate balances to meet forthcoming commitments.At this point in time, the Academy has no surplus funds to consider for investment.

Going ConcernAfter making appropriate enquiries, the governing body has a reasonable expectation that the Academy Trust has adequateresources to continue in operational existence for the foreseeable future. For this reason it continues to adopt the GoingConcern basis in preparing financial statements. Further details regarding the adoption of the Going Concern basis can befound in the Statement of Accounting Policies.

Plans for the futureThe Academy will continue striving to improve the levels of performance of its students at all levels, and is aiming for a swiftreturn to an Ofsted rating of Good/Outstanding.

The governors intend to enhance and expand facilities in pursuance of the Academy’s commitment to ensure that allstudents achieve their potential. It is recognised that students with differing abilities and aptitudes will have differing needsto allow them full access to the curriculum and that adjustments to learning environments may be required to meet theseneeds.

The Academy plans to investigate the feasibility of replacing some existing demountable classrooms with a built extensionto the main building.

Provision of Information to auditorsEach of the persons who were governors at the time when this Governors’ Report was approved has confirmed that:• So far as that governor is aware, there is no relevant audit information of which the charitable company’s auditors

are unaware, and• that governor has taken all the steps that ought to have been taken as a governor 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

AuditorsThe auditors, Price bailey LLP, indicated their willingness to continue in office. The Designated Governors will propose amotion reappointing the auditors at a meeting of the Governors.

This report was approved by order of the members of the Governing Body on 25 November 2013 and signed on its behalfby:

Ms H StuartChair

Page 5



GOVERNANCE STATEMENT

SCOPE OF RESPONSIBILITY

As governors, we acknowledge we have overall responsibility for ensuring that Buttsbury Junior School 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 governors has delegated the day-to-day responsibility to the Principal, 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 Buttsbury Junior School and theSecretary of State for Education. They are also responsible for reporting to the board of governors any material weaknessesor breakdowns in internal control.

GOVERNANCE

The information on governance included here supplements that described in the Governors' Report and in the Governors'Responsibilities Statement. The board of governors has formally met 6 times during the year. Attendance during the year atmeetings of the board of governors was as follows:

Governor Meetings attended Out of a possible

Mr V Collier 2 2Mrs A Robinson 4 4Ms H Stuart 6 6Ms H Baker 1 6Mrs T Cater 5 6Ms S Cis 1 6Mrs F Cripps 5 6Dr A Dulic-Sills 3 6Mr J Fairclough 5 6Miss F Ferguson 0 0Mrs P Garnett 5 6Mrs J Gray 5 6Mr S Harvey 0 0Mr D Hayden 6 6Mr D Howell 4 6Mrs C Jacobs 5 6Mr A Parker 5 6Mr L Sheppard 6 6Mr N Williamson 4 6

The Finance Committee is a sub-committee of the main board of governors. Its purpose is to address financial matters.

Attendance at meetings in the year was as follows:

Governor Meetings attended Out of a possible

Ms S Cis 5 6Mr V Collier 2 2F Cripps 6 6Mr D Hayden 5 6Mr A Parker 4 6Mr L Sheppard 6 6Ms H Stuart 4 6Mrs A Robinson 4 4

Page 6



GOVERNANCE STATEMENT (continued)

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 academy policies, aims and objectives, to evaluate the likelihood of those risks being realised and theimpact should they be realised, and to manage them efficiently, effectively and economically. The system of internal controlhas been in place in Buttsbury Junior School for the year 1 September 2012 to 31 August 2013 and up to the date ofapproval of the annual report and financial statements.

CAPACITY TO HANDLE RISK

The board of governors has reviewed the key risks to which the academy is exposed together with the operating, financialand compliance controls that have been implemented to mitigate those risks. The board of governors is of the view thatthere is a formal ongoing process for identifying, evaluating and managing the academy's significant risks, that has been inplace for the year 1 September 2012 to 31 August 2013 and up to the date of approval of the annual report and financialstatements. This process is regularly reviewed by the board of governors.

THE RISK AND CONTROL FRAMEWORK

The academy’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 governors;

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 governors has considered the need for a specific internal audit function and has decided to appoint EssexCounty Council as internal auditor.

The internal auditor's role includes giving advice on financial matters and performing a range of checks on the academy'sfinancial systems. On a termly basis, the internal auditor reports to the board of governors on the operation of thesystems of control and on the discharge of the board of governors' financial responsibilities.

Essex County Council delivered their schedule of works as planned and no material control issues were identified.

REVIEW OF EFFECTIVENESS

As Accounting Officer, the Principal has responsibility for reviewing the effectiveness of the system of internal control.During the year in question 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;

the work of the executive managers within the academy 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 order of the members of the governing body on 25 November 2013 and signed on their behalf, by:

Ms H StuartChair

Mrs A RobinsonAccounting Officer

Page 7



STATEMENT ON REGULARITY, PROPRIETY AND COMPLIANCE

As Accounting Officer of Buttsbury Junior School I have considered my responsibility to notify the academy board ofgovernors and the Education Funding Agency of material irregularity, impropriety and non-compliance with EFA terms andconditions of funding, under the funding agreement in place between the academy and the Secretary of State. As part of myconsideration I have had due regard to the requirements of the Academies Financial Handbook (2012).

I confirm that I and the academy board of governors are able to identify any material, irregular or improper use of funds bythe academy, or material non-compliance with the terms and conditions of funding under the academy's funding agreementand the Academies Financial Handbook (2012).

I confirm that no instances of material irregularity, impropriety or funding non-compliance have been discovered to date.

Mrs A RobinsonAccounting Officer

Date: 25 November 2013

Page 8



GOVERNORS' RESPONSIBILITIES STATEMENTFOR THE YEAR ENDED 31 AUGUST 2013

The governors (who act as governors of Buttsbury Junior School and are also the directors of the charitable company forthe purposes of company law) are responsible for preparing the Governors' Report and the financial statements inaccordance with the Annual Accounts Requirements issued by the EFA, United Kingdom Accounting Standards(UKGAAP) and applicable law and regulations.

Company law requires the governors to prepare financial statements for each financial year. Under company law thegovernors must not approve the financial statements unless they are satisfied that they give a true and fair view of thestate of affairs of the charitable company and of its incoming resources and application of resources, including its incomeand expenditure, for that period. In preparing these financial statements, the governors are required to:

select suitable accounting policies and then apply them consistently;

observe the methods and principles of the Charities SORP;

make judgments and accounting estimates that are reasonable and prudent;

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

disclosed and explained in the financial statements;

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

charitable company will continue in business.

The governors are responsible for keeping adequate accounting records that are sufficient to show and explain 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 governors 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 the EFA/DfE have been applied for the purposes intended.

The governors are responsible for the maintenance and integrity of the corporate and financial information included on 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 order of the members of the board of governors on 3 December 2013 and signed on its behalf by:

Ms H StuartChair

Page 9



INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BUTTSBURY JUNIOR SCHOOL

We have audited the financial statements of Buttsbury Junior School for the year ended 31 August 2013 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 issued by the EducationFunding 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 academy's members those matters we arerequired to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do notaccept or assume responsibility to anyone other than the academy and its members, as a body, for our audit work, for thisreport, or for the opinion we have formed.

RESPECTIVE RESPONSIBILITIES OF GOVERNORS AND AUDITORS

As explained more fully in the Governors' Responsibilities Statement, the governors (who are also the directors of theacademy 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 the academy's circumstances and havebeen consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by thegovernors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financialinformation in the Governors' Report to identify material inconsistencies with the audited financial statements. If we becomeaware of any apparent material misstatements or inconsistencies we consider 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 the academy's affairs as at 31 August 2013 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 issued by the Education Funding Agency.

OPINION ON OTHER MATTER PRESCRIBED BY THE COMPANIES ACT 2006

In our opinion the information given in the Governors' Report for the financial year for which the financial statements areprepared is consistent with the financial statements.

Page 10



INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BUTTSBURY JUNIOR SCHOOL

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 governors' 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 3BT10 December 2013

Page 11



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

In accordance with the terms of our engagement letter dated 8 August 2013 and further to the requirements of theEducation Funding Agency (EFA) as included in the Academies Accounts Direction 2013, we have carried out anengagement to obtain limited assurance about whether the expenditure disbursed and income received by Buttsbury JuniorSchool during the year 1 September 2012 to 31 August 2013 have been applied to the purposes identified by Parliamentand the financial transactions conform to the authorities which govern them.

This report is made solely to Buttsbury Junior School and the EFA in accordance with the terms of our engagement letter.Our work has been undertaken so that we might state to Buttsbury Junior School and the EFA those matters we arerequired to state in a report and for no other purpose. To the fullest extent permitted by law, we do not accept or assumeresponsibility to anyone other than Buttsbury Junior School and the EFA, for our work, for this report, or for the conclusionwe have formed.

RESPECTIVE RESPONSIBILITIES OF BUTTSBURY JUNIOR SCHOOL'S ACCOUNTING OFFICER AND THEREPORTING ACCOUNTANT

The accounting officer is responsible, under the requirements of Buttsbury Junior School's funding agreement with theSecretary of State for Education dated 1 May 2011, and the Academies Financial Handbook extant from 1 September 2012,for ensuring that expenditure disbursed and income received is applied for the purposes intended by Parliament and 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 2013. We report to you whether anything has come to our attention in carrying out our work whichsuggests that in all material respects, expenditure disbursed and income received during the year 1 September 2012 to 31August 2013 have not been applied to purposes intended by Parliament or that the financial transactions do not conform tothe authorities which govern them.

APPROACH

We conducted our engagement in accordance with the Academies Accounts Direction 2013 issued by the 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 officers’ statement on regularity, propriety and compliance.

• Evaluation of the general control environment of the academy trust, extending the procedures required for financial statements 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.

Page 12



INDEPENDENT REPORTING ACCOUNTANTS' ASSURANCE REPORT ON REGULARITY TO BUTTSBURYJUNIOR SCHOOL 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 2012 to 31 August 2013 have not been applied to purposesintended by Parliament and the financial transactions do not conform to the authorities which govern them.

Price Bailey LLP

Chartered Accountants

Causeway House1 Dane StreetBishop's StortfordHertfordshireCM23 3BT

10 December 2013

Page 13



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

FOR THE YEAR ENDED 31 AUGUST 2013

Unrestrictedfunds

Restrictedfunds

Restrictedfixed asset

fundsTotalfunds

Totalfunds

Note2013

£2013

£2013

£2013

£2012

£

INCOMING RESOURCES

Incoming resources fromgenerated funds:

Assets transferred on conversion 2 - - - - 3,280,781 Other voluntary income 2 28,557 45,978 - 74,535 126,457 Activities for generating funds 3 124,681 - - 124,681 141,779 Investment income 4 753 - - 753 375Incoming resources from charitable

activities 5 - 1,754,745 161,503 1,916,248 2,354,168

TOTAL INCOMING RESOURCES 153,991 1,800,723 161,503 2,116,217 5,903,560

RESOURCES EXPENDED

Charitable activities 8 48,557 1,818,919 305,381 2,172,857 2,635,277Governance costs 7 - 8,957 - 8,957 8,099

TOTAL RESOURCES EXPENDED 6 48,557 1,827,876 305,381 2,181,814 2,643,376

NET INCOMING RESOURCES /(RESOURCES EXPENDED)BEFORE TRANSFERS 105,434 (27,153) (143,878) (65,597) 3,260,184

Transfers between Funds 16 - (22,049) 22,049 - -

NET INCOME / (EXPENDITURE)FOR THE YEAR 105,434 (49,202) (121,829) (65,597) 3,260,184

Actuarial gains and losses ondefined benefit pension schemes - (30,000) - (30,000) (110,000)

NET MOVEMENT IN FUNDS FORTHE YEAR 105,434 (79,202) (121,829) (95,597) 3,150,184

Total funds at 1 September 2012 171,299 (518,798) 3,497,683 3,150,184 -

TOTAL FUNDS AT 31 AUGUST2013 276,733 (598,000) 3,375,854 3,054,587 3,150,184

All activities relate to continuing operations.

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

The notes on pages 17 to 33 form part of these financial statements.

Page 14


(A Company Limited by Guarantee)REGISTERED NUMBER: 07601846

BALANCE SHEETAS AT 31 AUGUST 2013

2013 2012Note £ £ £ £

FIXED ASSETS

Tangible assets 13 3,375,854 3,460,600

CURRENT ASSETS

Debtors 14 59,586 16,363

Cash at bank 340,510 303,303

400,096 319,666

CREDITORS: amounts falling due within oneyear 15 (123,363) (93,082)

NET CURRENT ASSETS 276,733 226,584

TOTAL ASSETS LESS CURRENT LIABILITIES 3,652,587 3,687,184

Defined benefit pension scheme liability 20 (598,000) (537,000)

NET ASSETS INCLUDING PENSION SCHEMELIABILITIES 3,054,587 3,150,184

FUNDS OF THE ACADEMY

Restricted funds :

Restricted funds 16 - 18,202

Restricted fixed asset funds 16 3,375,854 3,497,683

Restricted funds excluding pension liability 3,375,854 3,515,885

Pension reserve (598,000) (537,000)

Total restricted funds 2,777,854 2,978,885

Unrestricted funds 16 276,733 171,299

TOTAL FUNDS 3,054,587 3,150,184

The financial statements were approved by the governors, and authorised for issue, on 25 November 2013 and are signedon their behalf, by:

Ms H StuartChair


Page 15



CASH FLOW STATEMENTFOR THE YEAR ENDED 31 AUGUST 2013

31 August Period Ended

31 August 2013 2012

Note £ £

Net cash flow from operating activities 18 58,503 342,705

Returns on investments and servicing of finance - interest received 753 375

Capital expenditure (22,049) (39,777)

INCREASE IN CASH IN THE YEAR 37,207 303,303

RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDSFOR THE YEAR ENDED 31 AUGUST 2013


31 August 2013 2012

£ £

Increase in cash in the year 37,207 303,303

MOVEMENT IN NET FUNDS IN THE YEAR 37,207 303,303

Net funds at 1 September 2012 303,303 -

NET FUNDS AT 31 AUGUST 2013 340,510 303,303


Page 16



NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 AUGUST 2013

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 (SORP), 'Accounting andReporting by Charities' published in March 2005, the Academies Accounts Direction 2013 issued by the EFA,applicable accounting standards and the Companies Act 2006.

1.2 Fund accounting

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

Restricted fixed asset funds are resources which are to be applied to specific capital purposes imposed by theDfE 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.

1.3 Incoming resources

All incoming resources are included in the Statement of Financial Activities when the academy has entitlementto the funds, certainty of receipt and the amount can be measured with sufficient reliability.

Grants are included in the Statement of Financial Activities on a receivable basis. The balance of 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 is recognised in full in the year for which it is receivable and any unspent amount isreflected as a balance in the restricted general fund. Capital grants are recognised when receivable and arenot deferred over the life of the asset on which they are expended. Unspent amounts of capital grant arereflected in the balance in the restricted fixed asset fund.

The value of donated services and gifts in kind provided to the academy are recognised at their open marketvalue in the period in which they are receivable as incoming resources, where the benefit to the academy canbe reliably 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 the academy's policies.

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

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised atthe time of the donation.

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.

Page 17




1. ACCOUNTING POLICIES (continued)

1.4 Resources expended

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

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

Governance costs include the costs attributable to the academy's compliance with constitutional and statutoryrequirements, including audit, strategic management and governors' meetings and reimbursed expenses.

All resources expended are inclusive of irrecoverable VAT.

1.5 Going concern

The governors 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 the academy tocontinue as a going concern. The governors make this assessment in respect of a period of one year from thedate of approval of the financial statements.

1.6 Tangible fixed assets and depreciation

All assets costing more than £2,500 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 the academy'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:

Freehold property - 19.65 years straight lineFixtures and fittings - 5 - 20 years straight lineComputer equipment - 3 - 5 years straight line

1.7 Operating leases

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

1.8 Taxation

The academy 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, theacademy 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.

Page 18




1. ACCOUNTING POLICIES (continued)

1.9 Pensions

Retirement benefits to employees of the academy are provided by the Teachers' Pension Scheme ("TPS") andthe Local Government Pension Scheme ("LGPS"). These are defined benefit schemes, are contracted out ofthe State Earnings-Related Pension Scheme ("SERPS"), and the assets are held separately from those of theacademy.

The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions overemployees' working lives with the academy 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 20, theTPS is a multi-employer scheme and the academy is unable to identify its share of the underlying assets andliabilities 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 the academy 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 net finance amount of other finance costs or credits adjacent to interest. Actuarial gains and losses arerecognised immediately in other gains and losses.

2. OTHER VOLUNTARY INCOME

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2013£

2013£

2013£

2012£

Assets transferred on conversion - - - 3,280,781

Donations 28,557 43,584 72,141 113,552Grants - 2,394 2,394 12,905

Subtotal 28,557 45,978 74,535 126,457

Voluntary income 28,557 45,978 74,535 3,407,238

Page 19




3. ACTIVITIES FOR GENERATING FUNDS

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2013£

2013£

2013£

2012£

Catering income 79,082 - 79,082 83,009Rental income 20,291 - 20,291 28,755Other income 25,308 - 25,308 30,016

124,681 - 124,681 141,780

4. INVESTMENT INCOME

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2013£

2013£

2013£

2012£

Bank interest 753 - 753 375

5. FUNDING FOR ACADEMY'S EDUCATIONAL OPERATIONS

Buttsbury Junior School

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2013£

2013£

2013£

2012£

DfE/EFA grants

General Annual Grant (GAG) - 1,659,060 1,659,060 2,196,405Other DfE / EFA grants - 172,971 172,971 78,830

- 1,832,031 1,832,031 2,275,235

Other government grants

Local authority grants - 84,217 84,217 78,933

- 84,217 84,217 78,933

- 1,916,248 1,916,248 2,354,168

Page 20




6. ANALYSIS OF RESOURCES EXPENDED BY EXPENDITURE TYPE

Staff costs Premises Other costs Total Total2013

£2013

£2013

£2013

£2012

£

Provision of education 1,094,974 - 108,139 1,203,113 1,640,621Support costs 288,096 515,615 166,033 969,744 994,656

Charitable activities 1,383,070 515,615 274,172 2,172,857 2,635,277

Governance - - 8,957 8,957 8,099

1,383,070 515,615 283,129 2,181,814 2,643,376

7. GOVERNANCE COSTS

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2013£

2013£

2013£

2012£

Internal audit costs - 1,200 1,200 -Auditors' remuneration - 4,000 4,000 4,000Auditors' non audit costs - 3,757 3,757 4,000Governors expenses reimbursed - - - 99

- 8,957 8,957 8,099

Page 21




8. CHARITABLE ACTIVITIES - ACADEMY'S EDUCATIONAL OPERATIONS

Unrestrictedfunds

Restrictedfunds

Totalfunds

Totalfunds

2013£

2013£

2013£

2012£

DIRECT COSTS

Wages and salaries - 917,472 917,472 1,231,021National insurance - 62,483 62,483 79,901Pension cost - 115,019 115,019 157,028Educational supplies 389 56,538 56,927 122,727Staff development - 9,268 9,268 9,023Technology costs - 12,752 12,752 16,015Educational consultancy - 14,573 14,573 12,070Trip costs - 11,939 11,939 12,724Other costs - 2,680 2,680 112

389 1,202,724 1,203,113 1,640,621

SUPPORT COSTS

Wages and salaries - 223,492 223,492 303,569National insurance - 10,020 10,020 14,294Pension cost - 54,584 54,584 49,286Depreciation - 106,796 106,796 139,183FRS17 adjustments - 20,000 20,000 28,000Technology costs - 9,847 9,847 16,827Educational consultancy - 6,593 6,593 55,747Travel & subsistence - 5,765 5,765 10,058Other costs - 60,491 60,491 41,675Recruitment & support - 1,314 1,314 4,198Maintenance of premises & machinery - 269,243 269,243 94,594Cleaning - 8,049 8,049 4,391Rates - 4,551 4,551 6,139Energy - 16,591 16,591 19,938Insurance - 24,853 24,853 50,597Security - 2,319 2,319 2,992Catering 48,168 9,315 57,483 61,258Occupany costs - 15,877 15,877 17,153Bank interest & charges - 263 263 81Supply teaching - 35,583 35,583 47,040Printing, postage and stationery - 36,030 36,030 27,636

48,168 921,576 969,744 994,656

48,557 2,124,300 2,172,857 2,635,277

Page 22




9. NET INCOMING RESOURCES / (RESOURCES EXPENDED)

This is stated after charging:


31 August 2013 2012

£ £

Depreciation of tangible fixed assets:- owned by the charity 106,795 139,183

Auditors' remuneration 4,000 4,000Auditors' remuneration - non-audit 3,757 4,000Governance Internal audit costs 1,200 -

10. STAFF COSTS

Staff costs were as follows:


31 August 2013 2012

£ £

Wages and salaries 1,140,964 1,534,590Social security costs 72,503 94,194Other pension costs (Note 20) 169,603 206,314

1,383,070 1,835,098Supply teacher costs 35,583 47,040

1,418,653 1,882,138

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


31 August 2013 2012

No. No.

Teachers 17 18Administration & Support 25 22Management 2 1

44 41

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


31 August 2013 2012

No. No.

In the band £ 60,001 - £ 70,000 1 1

The above employee participated in the Teachers' Pension Scheme. During the year ended 31 August 2013,pension contributions for this person amounted to £8,869 (2012: £9,447).

Page 23




11. GOVERNORS' REMUNERATION AND EXPENSES

During the year retirement benefits were accruing to 6 governors (2012 - 3) in respect of defined contributionpension schemes.

The Principal and other staff governors only receive remuneration in respect of services they provide undertaking theroles of Principal and staff, and not in respect of their services as governors. Other governors did not receive anypayments, other than expenses, from the academy in respect of their role as governors. The value of governors'remuneration fell within the following bands:


31 August 2013 2012

£ £

Mrs A Robinson, Principal - from January 2013 40,000-45,000Mr V Collier, Principal - to December 2012 15,000-20,000 75,000-80,000Mrs F Cripps, Staff Governor 5,000-10,000 0-5,000Mrs C Jacobs, Staff Governor 40,000-45,000 55,000-60,000Ms S Cis, Associate Governor 45,000-50,000Ms H Baker, Associate Member 25,000-30,000

During the year, no governors received any reimbursement of expenses (2012 - £99).

12. GOVERNORS' AND OFFICERS' INSURANCE

In accordance with normal commercial practice the academy has purchased insurance to protect governors andofficers from claims arising from negligent acts, errors or omissions occurring whilst on academy business. Theinsurance provides cover up to £2,000,000 on any one claim and the cost for the year ended 31 August 2013 isincluded in the total insurance cost.

13. TANGIBLE FIXED ASSETS

Freeholdproperty

Fixtures andfittings

Computerequipment Total

£ £ £ £

Cost

At 1 September 2012 3,551,911 22,940 24,932 3,599,783Additions - 18,049 4,000 22,049

At 31 August 2013 3,551,911 40,989 28,932 3,621,832

Depreciation

At 1 September 2012 126,128 10,047 3,008 139,183Charge for the year 94,877 6,291 5,627 106,795

At 31 August 2013 221,005 16,338 8,635 245,978

Net book value

At 31 August 2013 3,330,906 24,651 20,297 3,375,854

At 31 August 2012 3,425,783 12,893 21,924 3,460,600

The land and buildings have been included in the accounts based on the valuation arranged by the EFA usingdepreciated replacement cost. The governors do not believe that the cost of obtaining a more detailed valuationoutweighs the benefit.

Page 24




14. DEBTORS

2013 2012 £ £

Trade debtors 1,535 1,240Other debtors 31,430 13,888Prepayments and accrued income 26,621 1,235

59,586 16,363

15. CREDITORS:Amounts falling due within one year

2013 2012 £ £

Other taxation and social security 25,940 23,108Other creditors 23,126 34,022Accruals and deferred income 74,297 35,952

123,363 93,082

£Deferred income

Deferred income at 1 September 2012 24,714Resources deferred during the year 20,849Amounts released from previous years (24,714)

Deferred income at 31 August 2013 20,849

The income deferred in the year principally related to DFC grants and Pupil Premium, addtional amounts were heldrelating to educational visists and catering.

Page 25




16. STATEMENT OF FUNDS

Broughtforward

Incomingresources

Resourcesexpended

Transfersin/out

Gains/(Losses)

Carriedforward

£ £ £ £ £ £

Unrestricted funds

Unrestricted funds 171,299 153,991 (48,557) - - 276,733

Restricted funds

General AnnualGrant (GAG) 18,202 1,659,060 (1,655,213) (22,049) - -

Other governmentgrants - 75,444 (75,444) - - -

Restricted tripdonations - 43,584 (43,584) - - -

Other DfE and EFAfunding - 22,635 (22,635) - - -

Pension reserve (537,000) - (31,000) - (30,000) (598,000)

(518,798) 1,800,723 (1,827,876) (22,049) (30,000) (598,000)

Restricted fixed asset funds

Broughtforward

Incomingresources

Resourcesexpended

Transfersin/out

Gains/(Losses)

Carriedforward

£ £ £ £ £ £

Restricted fixed assetfund 3,460,600 - (106,795) 22,049 - 3,375,854

Devolved FormulaCapital (DFC) 6,083 5,503 (11,586) - - -

EFA capital grant 31,000 156,000 (187,000) - - -

3,497,683 161,503 (305,381) 22,049 - 3,375,854

Total restricted funds 2,978,885 1,962,226 (2,133,257) - (30,000) 2,777,854

Total of funds 3,150,184 2,116,217 (2,181,814) - (30,000) 3,054,587

Page 26




16. STATEMENT OF FUNDS (continued)

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 2013.

Other government grantsThis represents funding received from other government bodies, local and national, which are restricted in nature.

Restricted trip donationsThis represents contributions made by parents towards the running costs of trips for the pupils of the academy andand the associated costs.

Other DfE and EFA fundingThis represents funding received from the DfE / EFA which is restricted in nature.

Pension reserveThis reserve represents the academy's share of the deficit on the Local Government Pension Scheme (LGPS)transferred to the academy on conversion.

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

The transfer between funds represents additions purchased through GAG funding.

Devolved Formula Capital (DFC)This represents funding received from the EFA specifically for the maintenance and improvement of the academy'sbuildings and facilities.

EFA capital grantThis represents funding from the EFA for a specific capital project.

SUMMARY OF FUNDS

Broughtforward

Incomingresources

Resourcesexpended

Transfersin/out

Gains/(Losses)

Carriedforward

£ £ £ £ £ £

General funds 171,299 153,991 (48,557) - - 276,733Restricted funds (518,798) 1,800,723 (1,827,876) (22,049) (30,000) (598,000)Restricted fixed asset

funds 3,497,683 161,503 (305,381) 22,049 - 3,375,854

3,150,184 2,116,217 (2,181,814) - (30,000) 3,054,587

Page 27




17. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestrictedfunds

Restrictedfunds

Restrictedfixed asset

fundsTotalfunds

Totalfunds

2013£

2013£

2013£

2013£

2012£

Tangible fixed assets - - 3,375,854 3,375,854 3,460,600Current assets 280,059 110,502 9,535 400,096 319,666Creditors due within one year (3,326) (110,502) (9,535) (123,363) (93,082)Provisions for liabilities and

charges - (598,000) - (598,000) (537,000)

276,733 (598,000) 3,375,854 3,054,587 3,150,184

18. NET CASH FLOW FROM OPERATING ACTIVITIES

31 AugustPeriod Ended

31 August2013 2012

£ £

Net incoming resources before revaluations (65,597) 3,260,184Returns on investments and servicing of finance (753) (375)Assets transferred on conversion - (3,560,006)Depreciation of tangible fixed assets 106,795 139,183Increase in debtors (43,224) (16,363)Increase in creditors 30,282 93,082LGPS deficit transferred on conversion - 403,000FRS17 adjustments 31,000 24,000

Net cash inflow from operations 58,503 342,705

19. ANALYSIS OF CHANGES IN NET FUNDS

1 September Cash flow

Othernon-cashchanges 31 August

2012 2013£ £ £ £

Cash at bank and in hand: 303,303 37,207 - 340,510

Net funds 303,303 37,207 - 340,510

Page 28




20. PENSION COMMITMENTS

The academy'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 Essex 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 2004 and of the LGPS 31 August 2012.

Contributions amounting to £19,607 were payable to the scheme at 31 August 2013 (2012 - 17,544) and areincluded within creditors.

Teachers' Pension Scheme

Introduction

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

The Teachers’ Pension Budgeting and Valuation Account

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

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

Valuation of the Teachers’ Pension Scheme

At the last valuation, the contribution rate to be paid into the TPS was assessed in two parts. First, a standardcontribution rate (SCR) was determined. This is the contribution, expressed as a percentage of the salaries ofteachers and lecturers in service or entering service during the period over which the contribution rate applies, whichif it were paid over the entire active service of these teachers and lecturers would broadly defray the cost of benefitspayable in respect of that service. Secondly, a supplementary contribution is payable if, as a result of the actuarialreview, it is found that accumulated liabilities of the Account for benefits to past and present teachers, are not fullycovered by standard contributions to be paid in future and by the notional fund built up from past contributions. Thetotal contribution rate payable is the sum of the SCR and the supplementary contribution rate.

The last valuation of the TPS related to the period 1 April 2001 to 31 March 2004. The Government Actuary’s reportof October 2006 revealed that the total liabilities of the Scheme (pensions in payment and the estimated cost offuture benefits) amounted to £166,500 million. The value of the assets (estimated future contributions together withthe proceeds from the notional investments held at that valuation date) was £163,240 million. The assumed real rateof return was 3.5% in excess of prices and 2% in excess of earnings. The rate of real earnings growth was assumedto be 1.5%. The assumed gross rate of return was 6.5%. From 1 January 2007, the SCR was assessed at 19.75%,and the supplementary contribution rate was assessed to be 0.75% (to balance assets and liabilities as required bythe regulations within 15 years). This resulted in a total contribution rate of 20.5%, which translated into an employeecontribution rate of 6.4% and employer contribution rate of 14.1% payable.

Actuarial scheme valuations are dependent on assumptions about the value of future costs, the design of benefitsand many other factors. Many of these assumptions are being considered as part of the work on the reformed TPS,as set out below. Scheme valuations therefore remain suspended. The Public Service Pensions Bill, which is beingdebated in the House of Commons, provides for future scheme valuations to be conducted in accordance withTreasury directions. The timing for the next valuation has still to be determined, but it is likely to be before thereformed schemes are introduced in 2015.

Page 29




20. PENSION COMMITMENTS (continued)

Teachers’ Pension Scheme Changes

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

The key provisions of the reformed scheme include: a pension based on career average earnings; an accrual rate of1/57th ; and a Normal Pension Age equal to State Pension Age, but with options to enable members to retire earlieror later than their Normal Pension Age. Importantly, pension benefits built up before 1 April 2015 will be fullyprotected.

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

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

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

Local Government Pension Scheme

The LGPS is a funded defined benefit scheme, with assets held in separate trustee-administered funds. The totalcontribution made for the year ended 31 August 2013 was £74,000 (2012 - £95,000), of which employer'scontributions totalled £58,000 (2012 - £74,000) and employees' contributions totalled £16,000 (2012 - £21,000). Theagreed contribution rates for future years are 12.2% for employers and 6.5% 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 LGPS obligation relates to the employees of the academy, who were the employees transferred as part of theconversion from the maintained school and new employees who were eligible to, and did, join the scheme in theyear. The obligation in respect of employees who transferred on conversion represents their cumulative service atboth the predecessor school and the academy at the balance sheet date.

The amounts recognised in the Balance Sheet are as follows:


31 August 2013 2012

£ £

Present value of funded obligations (771,000) (632,000)Fair value of scheme assets 173,000 95,000

Net liability (598,000) (537,000)

Page 30





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


31 August 2013 2012

£ £

Current service cost (69,000) (70,000)Interest on obligation (26,000) (32,000)Expected return on scheme assets 6,000 4,000

Total (89,000) (98,000)

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


31 August 2013 2012

£ £

Opening defined benefit obligation 632,000 -Current service cost 69,000 70,000Interest cost 26,000 32,000Contributions by scheme participants 16,000 21,000Actuarial Losses 44,000 111,000Benefits paid (16,000) (5,000)Present value of defined benefit obligation on conversion - 403,000

Closing defined benefit obligation 771,000 632,000

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


31 August 2013 2012

£ £

Opening fair value of scheme assets 95,000 -Expected return on assets 6,000 4,000Actuarial gains and (losses) 14,000 1,000Contributions by employer 58,000 74,000Contributions by employees 16,000 21,000Benefits paid (16,000) (5,000)

173,000 95,000

The cumulative amount of actuarial gains and losses recognised in the Statement of Total Recognised Gains andLosses was £30,000 (2012 - £110,000).

The academy expects to contribute £68,000 to its Defined Benefit Pension Scheme in 2014.

Page 31





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

2013 2012

Equities %65.00 %68.00Gilts %8.00 %6.00Other bonds %9.00 %9.00Property %11.00 %13.00Cash %3.00 %4.00Atlernative assets %4.00 %-

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

2013 2012

Discount rate for scheme liabilities %4.70 %3.90Expected return on scheme assets at 31 August %5.80 %5.20Rate of increase in salaries %4.70 %3.70Rate of increase for pensions in payment / inflation %2.90 %1.90Inflation assumption (CPI) %2.90 %1.90

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

2013 2012

Retiring todayMales 22.7 22.7Females 25.3 25.3

Retiring in 20 yearsMales 24.2 24.1Females 26.9 26.8

Amounts for the current and previous period are as follows:

Defined benefit pension schemes

2013 2012 £ £

Defined benefit obligation (771,000) (632,000)Scheme assets 173,000 95,000

Deficit (598,000) (537,000)

Experience adjustments on scheme assets 14,000 1,000

21. OPERATING LEASE COMMITMENTS

At 31 August 2013 the academy had annual commitments under non-cancellable operating leases as follows:

Land and buildings Other2013 2012 2013 2012

£ £ £ £

Expiry date:

Within 1 year - - - 5,088Between 2 and 5 years - - 5,599 -

Page 32




22. RELATED PARTY TRANSACTIONS

Owing to the nature of the Academy’s operations and the composition of the board of governors being drawn fromlocal public and private sector organisations, it is possible that from time to time transactions will take place withorganisations in which a member of the board of governors may have an interest. Further, the Academy has formalor informal arrangements with several Connected Organisations. These include BCT, Billericay SCITT, TeachingSchools Alliance, First Strokes Swimming, Winger Sports, Working for Children and William de Ferrers SportsPartnership. All transactions involving these organisations were conducted at arm’s length and in accordance withthe Academy’s financial regulations and normal procedures.

There were no related party transactions during the period ended 31 August 2013.

Page 33

Documents

BUTTSBURY JUNIOR SCHOOL...company for the period 1st September 2012 – 31st August 2013. Structure, Governance and Management Constitution The academy trust is a company limited by