THE HELENA ROMANES SCHOOL

Registered number: 07984843

THE HELENA ROMANES SCHOOL

GOVERNORS' REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD 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 - 8

Statement on Regularity, Propriety and Compliance 9

Governors' Responsibilities Statement 10

Independent Auditors' Report 11 - 12

Independent Reporting Accountant's Assurance Report on Regularity 13 - 14

Statement of Financial Activities 15

Balance Sheet 16

Cash Flow Statement 17

Notes to the Financial Statements 18 - 35



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

Governors Mr E Ryan, Chairman of Governors (appointed 9 March 2012)1,2

Mr S Knight (appointed 9 March 2012)1,2

Mr D Allum (appointed 1 April 2012)Mr R Ashton (appointed 1 April 2012)Mrs P Callingham (appointed 1 April 2012, resigned 27 February 2013)Mrs V Cummings-Newell (appointed 1 April 2012)Mrs B Durston (appointed 1 April 2012)Ms J Dyson (appointed 9 March 2012, resigned 4 December 2012)2

Mr R Elliott (appointed 1 April 2012)1

Miss A Foley (appointed 1 April 2012)1

Mrs T FullertonMr I Keast (appointed 1 April 2012)1,2

Mr J Moore (appointed 1 April 2012)1

Mr M Nelson (appointed 1 April 2012)1

Mr P Osborne (appointed 1 April 2012)Mr M Perry (appointed 1 April 2012)1

Mr D Robertson (appointed 1 April 2012)1

Mrs L Smith (appointed 1 April 2012)1

Mr A Soutar (appointed 1 April 2012)1,2

Mr I Trendall (appointed 1 April 2012)Mrs S Tyrell (appointed 1 April 2012)Mr R Young (appointed 10 July 2012)1

1 Member of Finance Committee2 Member/Trustee of Academy

Company registerednumber 07984843

Principal and registeredoffice

The Helena Romanes SchoolParsonage DownsGreat DunmowEssexCM6 2AU

Chief executive officerHeadteacher

Mr S Knight

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

Page 1



GOVERNORS' REPORTFOR THE PERIOD ENDED 31 AUGUST 2013

The Directors present their annual report together with the financial statements and auditors’ report of The Helena RomanesSchool Limited (the Charitable Company) for the period ended 31 August 2013.

The Governors confirm that the Annual Report and financial statements of the academy comply with the current statutoryrequirements, the requirements of the academy's governing document and the provisions of the Statement ofRecommended Practice (SORP) "Accounting and Reporting by Charities" issued in March 2005.

Structure, Governance and Management

ConstitutionThe Academy Trust is a company limited by guarantee and an exempt charity. The Charitable Company’s memorandumand articles of association are the primary governing documents of the Academy Trust. The Trustees of the CharitableCompany are also the Directors for the purposes of company law. The terms Trustee, Director and Governor areinterchangeable. The academy trust is also known as The Helena Romanes School.

GovernanceDetails of the Trustees who served throughout the year are included in the Reference and Administrative Details section.

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’ IndemnitiesNo provisions were required for third party indemnity; moreover Trustee third party indemnity provision is covered by theCharitable Company’s insurance policy.

Principal ActivitiesThe principal activities of the Charitable Company are for the provision of education. These activities are met by the runningThe Helena Romanes School. The school is an 11-18 secondary school covering the catchment area of Great Dunmow,The Rodings, Thaxted, Stebbing, Bardfield, Flitch Green, Felsted and part of Takeley with a school roll of 1,361 pupils.

Method of Recruitment and Appointment or Election of GovernorsGovernors are appointed for a fixed term. The Headteacher 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.

Policies and Procedures Adopted for the Induction and Training of GovernorsThe Charitable Company is committed to providing adequate opportunities for Governors to undertake and receive suitabletraining so as to enable them to perform their role effectively. To this end the company links with Essex County Council.

New Governors are required to attend a training programme. The induction programme would involve a tour of the school,meetings with students and staff and provision of policy and procedures documents that are appropriate to the role theyundertake as governors with particular emphasis on the committee work that they will undertake.

Organisational Structure The Trustees are responsible for setting and implementing strategic policy; adopting an annual plan and budget; monitoringthe Trust by the use of those budgets and making major decisions about the direction of the Trust, capital expenditure andsenior staff appointments.

The Senior Leadership Team (SLT) controls the Academy at an executive level implementing policies and reporting to theTrustees. In particular this entails organising staff, resources and students. They are responsible for the authorisation ofspending within agreed budgets and for the appointment of staff following vetting and safeguarding recruitment process.The Headteacher is the Accounting Officer.

Risk ManagementThe Trustees have a risk register identifying the major risks to which the Academy is exposed, and identifying actions andprocedures to mitigate those risks. This register is currently in draft format, but once approved, will be monitored by theTrustees via the Audit Committee and the Finance Committee. The principal risks facing the Trust are outlined below in theprincipal risks and uncertainties section; those facing the Academy at an operational level are addressed by its systems andby internal financial and other controls.

Page 2



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

The Trustees report that the Trust’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.

Connected Organisations including Related Party Relationships Owing to the nature of the Trust's operations and the composition of the Board of Directors and Governors being drawnfrom local public and private sector organisations, it is inevitable that from time to time transactions will take place withorganisations in which members of the board 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.

The Trust cooperated with the following organisations during the year in pursuit of its charitable activities:

• David Lipson Photography

Objectives and Activities

Objects and Aims

We aim to foster a culture of success through:• placing learners at the heart of our community• developing resilient, resourceful students • adapting and applying skills for flexible life-long learning

To be an OUTSTANDING school aspiring to:• provide a high quality educational experience for all students and staff • create a culture of high expectations for all students and staff• raise standards of achievement for all students and staff through creating a learning focused school• continue to improve the quality of teaching and learning• build leadership capacity and capability for all students and staff• become a learning community where all can succeed

Public Benefit The Trustees believe that by working towards the objects and aims of the school as detailed above, they have complied withtheir duty to have due regard to the guidance on public benefit published by the Charity Commission.

Achievements and Performance

The Academy continued its drive to be the school of choice for the local community through fostering a culture of successwith the best Ofsted report in the history of the school. For the first time, the school was graded as “Good” with no keyissues. This demonstrates our commitment to ensure that students fulfil their potential within a caring environment as wecontinue our journey to be an “outstanding” school. Underpinning this is a relentless focus on teaching and learning,developing and retaining suitable staff, and offering a wide range of extra-curricular activities.

The examination results in the summer demonstrate the continued upward trend in results over time. In 2013, 63% ofstudents achieved 5 or more GCSEs grades A* to C, including Maths and English and was above the national average of59%.

A level results in 2013 maintained the recent improvements of recent years. 30% of all A level grades in the range A* - C.This supported the Ofsted report that stated that “the sixth form is good”.

Going Concern After making appropriate enquiries, the Board of Trustees has a reasonable expectation that the Academy Trust hasadequate resources to continue in operational existence for the foreseeable future. For this reason it continues to adopt thegoing concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basiscan be found in the Statement of Accounting Policies.

Page 3




Financial Review

The principal source of funding for the Trust is the General Annual Grant (GAG) and other grants that it receives from theEFA. For the period ended 31 August 2013 the Trust received £10,576,408 of GAG and other funding. A high percentage ofthis funding is spent on wages and salaries and support costs to deliver the Academy’s primary objective of the provision ofeducation. During the year the Academy Trust had a surplus of £227,875 which has been carried forward for the followingpurposes:

Strategic development of the provision of IT within the school £100,000Devolpment and build of a Personalised Learning Centre £ 30,000Increase to 2013/14 budgeted contingency £ 67,000Roofing repairs to E Block £ 30,900

The Academy Trust has received unrestricted income from other sources of £120,429 during the year.

Principal Risks and Uncertainties The Directors assess the principal risks and uncertainties facing the Trust as follows:

• Staff retention and recruitment: The quality of staff (both teaching and support) is crucial in sustaining the high achievements of the school. The recruitment of potentially good and outstanding teachers in shortage subjects remains a challenge. An important factor in addressing this risk is the school’s emphasis on high quality, personalised professional development for all staff.

• Budget constraints: We continue to operate in a period of constrained public spending on education. Continuing emphasis is placed upon the balance between the breadth of curriculum provision and average class size.

• Material decrease in income affecting provision: unlikely. The budget for 2013-14 is tight but achievable. Cost cutting exercises are in place across many areas of the business to ensure economies of scale are achieved and wastage is at a minimum. Value for money is paramount.

• 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.

Reserves Policy .The Directors are aware or the requirement to balance current and future needs. Budgets and expenditure plans aredeveloped to create a small annual surplus to build up a sufficient contingency to alleviate changes in the national fundingformula and to ensure the Academy Trust can continue to recruit and retain high quality staff. The Academy’s current level of free reserves (total funds less the amount held in fixed assets and restricted funds) is£265,416 which is considered to be adequate.

Due to the accounting rules for the Local Government Pension Scheme under FRS17, the Academy is recognising asignificant pension fund deficit of £1,968,000. This does not mean that an immediate liability for this amount crystallises andthat such a deficit generally results in a cash flow effect in the form of increased employer contributions over a number ofyears.

Investment PolicyThe Academy has a policy of investing its cash balances with a view to maximising returns, but where greater weight isassigned to the safety of the investment. The policy aim is to spend the public monies with which the governors areentrusted for the direct education benefit of students as soon as is prudent. The Academy does not consider the investmentof surplus funds as a primary activity, rather it is the result of good practice as and when circumstances allow.

Key financial performance indicatorsThe Governors receive monthly financial information to enable them to monitor the financial performance of the School.The following are the key indicators used:

• Current Reserve & Contingencies – movement in-year• Total payroll as a % of GAG income (Budget: 80% - Actual 76%)• % payroll split Teaching : Non-Teaching (Teaching: Budget 77.2% - Actual 77.4% Non-Teaching: Budget – 22.8% -

Actual 22.6%)

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Plans for Future PeriodsThe Trust will continue striving to improve the levels of performance of its students at all levels, and will attempt to maintainits recent progress in ensuring the number of students on roll properly reflects the demand for places.

The Trustees intend to enhance and expand facilities in pursuance of the school’s commitment to ensure that all studentsachieve their potential. It is recognised that students with differing abilities and aptitudes will have differing curriculumrequirements and that a greater diversity of learning environments will be required to deliver these.

Provision of information to AuditorsIn so far as the Trustees are aware:

• there is no relevant audit information of which the charitable company’s auditors are unaware, and• the Trustees have taken all the steps that they ought to have taken to make themselves aware of any relevant auditinformation and to establish that the auditor is aware of that information.

Approved by order of the Board of Trustees on 19 November 2013 and signed on its behalf by:

Mr E RyanChairman

Page 5



GOVERNANCE STATEMENT

SCOPE OF RESPONSIBILITY

As governors, we acknowledge we have overall responsibility for ensuring that The Helena Romanes School has aneffective and appropriate system of control, financial and otherwise. However such a system is designed to manage ratherthan eliminate the risk of failure to achieve business objectives, and can provide only reasonable and not absoluteassurance against material misstatement or loss.

The Governing Body 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 The Helena Romanes School and theSecretary of State for Education. They are also responsible for reporting to the Governing Body any material weaknesses orbreakdowns in internal control.

GOVERNANCE

The information on governance included here supplements that described in the Governors' Report and in the Governors'Responsibilities Statement. The Governing Body has formally met 7 times during the period. Attendance during the periodat meetings of the Governing Body was as follows:

Governor Meetings attended Out of a possible

Mr E Ryan, Chairman of Governors 7 7Mr S Knight 6 7Mr D Allum 6 7Mr R Ashton 4 7Mrs P Callingham 4 4Mrs V Cummings-Newell 5 7Mrs B Durston 5 7Ms J Dyson 4 4Mr R Elliott 7 7Miss A Foley 5 7Mrs T Fullerton 1 1Mr I Keast 6 7Mr J Moore 6 7Mr M Nelson 5 7Mr P Osborne 3 7Mr M Perry 7 7Mr D Robertson 6 7Mrs L Smith 4 7Mr A Soutar 6 7Mr I Trendall 6 7Mrs S Tyrell 5 7Mr R Young 4 6

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

Attendance at meetings in the period was as follows:


Mr E Ryan 7 7Mr S Knight 6 7Mr R Elliott 6 7Mr E Keast 7 7Mr J Moore 5 7Mr D Robertson 6 7Mr A Soutar 5 7Mr R Young 6 6

Page 6



GOVERNANCE STATEMENT (continued)

The Audit Committee is also a sub-committee of the main Governing Body. Its purpose is to address financial and auditmatters.

Attendance at meetings in the period was as follows:


Mr R Ashton 1 1Mr R Elliott 1 1Mr I Keast 1 1Mr M Nelson 1 1Mr I Trendall 1 1Mr K Young 1 1

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 The Helena Romanes School for the period 1 April 2012 to 31 August 2013 and up to the date ofapproval of the annual report and financial statements.

CAPACITY TO HANDLE RISK

The Governing Body has reviewed the key risks to which the academy is exposed together with the operating, financial andcompliance controls that have been implemented to mitigate those risks. The Governing Body is of the view that there is aformal ongoing process for identifying, evaluating and managing the academy's significant risks, that has been in place forthe period 1 April 2012 to 31 August 2013 and up to the date of approval of the annual report and financial statements. Thisprocess is regularly reviewed by the Governing Body.

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 Governing Body;

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 Governing Body has considered the need for a specific internal audit function and has decided to appoint Essex CountyCouncil 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 Governing Body on the operation of the systemsof control and on the discharge of the Governing Body' financial responsibilities.

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

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GOVERNANCE STATEMENT (continued)

REVIEW OF EFFECTIVENESS

As Accounting Officer, the Principal has responsibility for reviewing the effectiveness of the system of internal control.During the period 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 Audit Committee and a plan to address weaknesses and ensure continuous improvement ofthe system is in place.

Approved by order of the members of the Governing Body on 19 November 2013 and signed on their behalf, by:

Mr E RyanChairman

Mr S KnightHead Teacher & Accounting Officer

Page 8



STATEMENT ON REGULARITY, PROPRIETY AND COMPLIANCE

As Accounting Officer of The Helena Romanes School I have considered my responsibility to notify the academy GoverningBody 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 Governing Body are able to identify any material, irregular or improper use of funds by theacademy, or material non-compliance with the terms and conditions of funding under the academy's funding agreement andthe Academies Financial Handbook (2012).

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

Mr S KnightAccounting Officer

Date: 19 November 2013

Page 9



GOVERNORS' RESPONSIBILITIES STATEMENTFOR THE PERIOD ENDED 31 AUGUST 2013

The Governors (who act as governors of The Helena Romanes School and are also the directors of the charitablecompany for the purposes of company law) are responsible for preparing the Governors' Report and the financialstatements in accordance with the Annual Accounts Direction issued by the Education Funding Agency, United KingdomAccounting Standards (United Kingdom Generally Accepted Accounting Practice) 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;

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 onthe charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination offinancial statements may differ from legislation in other jurisdictions.

Approved by order of the members of the Governing Body on 19 November 2013 and signed on its behalf by:

Mr E RyanChairman

Page 10



INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE HELENA ROMANES SCHOOL

We have audited the financial statements of The Helena Romanes School for the period ended 31 August 2013 whichcomprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and the related notes. Thefinancial reporting framework that has been applied in their preparation is applicable law, United Kingdom AccountingStandards (United Kingdom Generally Accepted Accounting Practice) and the Academies Accounts Direction 2013 issuedby the Education Funding Agency.

This report is made solely to the academy's members, as a body, in accordance with Chapter 3 of Part 16 of 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 period 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.

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE HELENA ROMANES 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 3BT6 December 2013

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INDEPENDENT REPORTING ACCOUNTANTS' ASSURANCE REPORT ON REGULARITY TO THE HELENAROMANES 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 The HelenaRomanes School during the period 1 April 2012 to 31 August 2013 have been applied to the purposes identified byParliament and the financial transactions conform to the authorities which govern them.

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

RESPECTIVE RESPONSIBILITIES OF THE HELENA ROMANES SCHOOL'S ACCOUNTING OFFICER AND THEREPORTING ACCOUNTANT

The accounting officer is responsible, under the requirements of The Helena Romanes School's funding agreement with theSecretary of State for Education dated 28 March 2012, and the Academies Financial Handbook extant from 2006, 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 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 period 1 April 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.

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INDEPENDENT REPORTING ACCOUNTANTS' ASSURANCE REPORT ON REGULARITY TO THE HELENAROMANES 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 period 1 April 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

6 December 2013

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

FOR THE PERIOD ENDED 31 AUGUST 2013

Unrestrictedfunds

Restrictedfunds

Restrictedfixed asset

fundsTotalfunds

Note2013

£2013

£2013

£2013

£

INCOMING RESOURCES

Incoming resources from generated funds: Funds received on conversion 2 19,156 (1,504,000) 17,972,018 16,487,174 Other voluntary income 2 144,986 239,161 - 384,147 Activities for generating funds 3 119,800 - - 119,800 Investment income 4 862 - - 862Incoming resources from charitable activities 5 - 10,422,104 698,973 11,121,077

TOTAL INCOMING RESOURCES 284,804 9,157,265 18,670,991 28,113,060

RESOURCES EXPENDED

Charitable activities 7 19,388 10,347,398 498,971 10,865,757Governance costs 8 - 64,883 - 64,883

TOTAL RESOURCES EXPENDED 6 19,388 10,412,281 498,971 10,930,640

NET INCOMING RESOURCES / (RESOURCESEXPENDED) BEFORE TRANSFERS 265,416 (1,255,016) 18,172,020 17,182,420

Transfers between funds 16 - (64,693) 64,693 -

NET INCOME FOR THE YEAR 265,416 (1,319,709) 18,236,713 17,182,420

Actuarial gains and losses on defined benefitpension schemes - (407,000) - (407,000)

NET MOVEMENT IN FUNDS FOR THE YEAR 265,416 (1,726,709) 18,236,713 16,775,420

Total funds at 1 April 2012 - - - -

TOTAL FUNDS AT 31 AUGUST 2013 265,416 (1,726,709) 18,236,713 16,775,420

All of the academy's activities derive from acquisitions in the current financial period.

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

The notes on pages 18 to 35 form part of these financial statements.

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(A Company Limited by Guarantee)REGISTERED NUMBER: 07984843

BALANCE SHEETAS AT 31 AUGUST 2013

2013Note £ £

FIXED ASSETS

Tangible assets 13 17,847,406

CURRENT ASSETS

Debtors 14 399,591

Cash at bank and in hand 24 956,363

1,355,954

CREDITORS: amounts falling due within one year 15 (459,940)

NET CURRENT ASSETS 896,014

TOTAL ASSETS LESS CURRENT LIABILITIES 18,743,420

Defined benefit pension scheme liability 21 (1,968,000)

NET ASSETS INCLUDING PENSION SCHEME LIABILITIES 16,775,420

FUNDS OF THE ACADEMY

Restricted funds :

Restricted funds 16 241,292

Restricted fixed asset funds 16 18,236,712

Restricted funds excluding pension liability 18,478,004

Pension reserve (1,968,000)

Total restricted funds 16,510,004

Unrestricted funds 16 265,416

TOTAL FUNDS 16,775,420

The financial statements were approved by the Governors, and authorised for issue, on 19 November 2013 and are signedon their behalf, by:

Mr E RyanChairman


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CASH FLOW STATEMENTFOR THE PERIOD ENDED 31 AUGUST 2013

Period ended 31 August

2013Note £

Net cash flow from operating activities 18 1,299,719

Returns on investments and servicing of finance - interest received 862

Capital expenditure (344,218)

INCREASE IN CASH IN THE PERIOD 956,363

All of the cash flows are derived from acquisitions in the current financial period.

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


2013 £

Increase in cash in the period 956,363

MOVEMENT IN NET FUNDS IN THE PERIOD 956,363

NET FUNDS AT 31 AUGUST 2013 956,363


Page 17



NOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD 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 Company status

The academy is a company limited by guarantee. The members of the company are the Governors named onpage 1. In the event of the academy being wound up, the liability in respect of the guarantee is limited to £10per member of the academy.

1.3 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 theDepartment for Education where the asset acquired or created is held for a specific purpose.

Restricted general funds comprise all other restricted funds received and include grants from the Departmentfor Education.

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 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.

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 18




1. ACCOUNTING POLICIES (continued)

1.5 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.

Where an expense is deemed to be for business purposes i.e not in relation to teh Academy's charitablepurpose, the expenditure this relates to will include irrecoverable VAT.

1.6 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.

1.7 Tangible fixed assets and depreciation

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

Where tangible fixed assets have been acquired with the aid of specific grants, either from the government 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 reviewed for impairment if events or changes in circumstances indicate thethe carrying value of the asset may not be recoverable.

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 - 50 years straight lineProperty improvements - 30 years straight linePlant and machinery - 5 to 15 years straight lineMotor vehicles - 10 years straight lineFixtures and fittings - 10 years straight lineComputer equipment - 5 years straight line

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 19




1. ACCOUNTING POLICIES (continued)

1.9 Operating leases

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight linebasis over the period until the date the rent is expected to be adjusted to the prevailing market rate.

1.10 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 and the assets are heldseparately from those of the academy.

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 21, 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.

1.11 Conversion to an academy trust

The conversion from a state maintained school to an academy trust involved the transfer of identifiable assetsand liabilities and the operation of the school for £nil consideration and has been accounted for under theacquisition accounting method.

The assets and liabilities transferred on conversion from Helena Romanes School & Sixth Form to an academytrust have been valued at their fair value, being a reasonable estimate of the current market value that theGovernors would expect to pay in an open market for an equivalent item. Their fair value is in accordance withthe accounting policies set out for The Helena Romanes School. The amounts have been recognised under theappropriate balance sheet categories, with a corresponding amount recognised in the Statement of FinancialActivities and analysed under unrestricted funds and restricted fixed asset funds.

Further details of the transaction are set out in note 20.

Page 20




2. VOLUNTARY INCOME

Unrestrictedfunds

Restrictedfunds

Totalfunds

2013£

2013£

2013£

Funds received on conversion 19,156 16,468,018 16,487,174

Contribution to trips 144,986 239,161 384,147

Voluntary income 164,142 16,707,179 16,871,321

3. ACTIVITIES FOR GENERATING FUNDS

Unrestrictedfunds

Restrictedfunds

Totalfunds

2013£

2013£

2013£

Catering income 1,130 - 1,130Rental income 56,470 - 56,470Other income 62,200 - 62,200

119,800 - 119,800

4. INVESTMENT INCOME

Unrestrictedfunds

Restrictedfunds

Totalfunds

2013£

2013£

2013£

Bank interest received 862 - 862

Page 21




5. FUNDING FOR ACADEMY'S EDUCATIONAL OPERATIONS

Unrestrictedfunds

Restrictedfunds

Totalfunds

2013£

2013£

2013£

DfE/EFA grants

General Annual Grant (GAG) - 9,799,239 9,799,239Other DfE / EFA grants - 999,765 999,765

- 10,799,004 10,799,004

Other government grants

Local authority grants - 322,073 322,073

- 322,073 322,073

- 11,121,077 11,121,077

6. ANALYSIS OF RESOURCES EXPENDED BY EXPENDITURE TYPE

Staff costs Premises Other costs Total2013

£2013

£2013

£2013

£

Direct costs 6,391,847 - 1,050,540 7,442,387Support costs - Education 1,574,252 1,465,350 383,768 3,423,370

Charitable activities 7,966,099 1,465,350 1,434,308 10,865,757

Governance - - 64,883 64,883

7,966,099 1,465,350 1,499,191 10,930,640

Page 22




7. CHARITABLE ACTIVITIES - ACADEMY'S EDUCATIONAL OPERATIONS

Unrestrictedfunds

Restrictedfunds

Totalfunds

2013£

2013£

2013£

DIRECT COSTS

Wages and salaries - 5,289,927 5,289,927National insurance - 421,600 421,600Pension cost - 680,320 680,320Educational supplies - 669,884 669,884Examination fees - 251,741 251,741Technology costs - 76,259 76,259Educational consultancy - 46,160 46,160Other costs - 6,496 6,496

- 7,442,387 7,442,387

SUPPORT COSTS

Wages and salaries - 1,360,666 1,360,666National insurance - 63,892 63,892Pension cost - 149,694 149,694Depreciation - 468,829 468,829FRS 17 adjustment to LGPS - 109,000 109,000Staff development - 37,771 37,771Technology costs - 35,685 35,685Travel & subsistence - 6,685 6,685Other costs 18,933 154,780 173,713Recruitment & support - 63,130 63,130Maintenance of premises & machinery - 211,566 211,566Cleaning - 235,410 235,410Rates - 53,106 53,106Energy - 142,169 142,169Insurance - 106,642 106,642Security - 14,973 14,973Transport - 17,637 17,637Catering 455 57,016 57,471Occupany costs - 65,383 65,383Bank interest & charges - 1,859 1,859Printing, postage and stationery - 48,089 48,089

19,388 3,403,982 3,423,370

19,388 10,846,369 10,865,757

Page 23




8. GOVERNANCE COSTS

Unrestrictedfunds

Restrictedfunds

Totalfunds

2013£

2013£

2013£

Governance internal audit costs - 3,461 3,461Governance auditors' remuneration - 4,239 4,239Governance auditors' non audit costs - 11,006 11,006Legal and professional - 46,159 46,159Other governance costs - 18 18

- 64,883 64,883

9. NET INCOMING RESOURCES / (RESOURCES EXPENDED)

This is stated after charging:


2013 £

Depreciation of tangible fixed assets:- owned by the academy 468,829

Auditors' remuneration 4,239Governance Internal audit costs 3,461

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10. STAFF COSTS

Staff costs were as follows:


2013 £

Wages and salaries 6,398,135Social security costs 485,492Other pension costs (Note 21) 830,014

7,713,641Supply teacher costs 228,958Compensation payments 23,500

7,966,099

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


2013 No.

Teachers 97Administration and support 79Management 3

179

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


2013 No.

In the band £ 60,001 - £ 70,000 2In the band £ 90,001 - £100,000 1

3

All of the above employees participated in the Teachers' Pension Scheme. During the year period 31 August 2013pension contributions for these staff amounted to £46,434.

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11. GOVERNORS' REMUNERATION AND EXPENSES

During the period retirement benefits were accruing to 4 Governors in respect of defined benefit pension schemes.

The Principal and other staff Governors only receive remuneration in respect of services they provide undertakingthe roles of Principal and staff, and not in respect of their services as Governors. Other Governors did not receiveany payments, other than expenses, from the academy in respect of their role as Governors. The value ofGovernors' remuneration for the 17 month period fell within the following bands:

* For the 17 month period Period ended

31 August 2013

£

Mr S Knight, Head Teacher & Accounting Officer * 130,000-135,000Mr D Allum, Staff Governor * 65,000-70,000Miss A Foley, Staff Governor * 60,000-65,000Mrs V Cummings-Newell, Staff Governor * 50,000-55,000

During the period ended 31 August 2013, expenses totalling £1,098 were reimbursed to 5 Governors.

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 £1,000,000 on any one claim and the cost for the period ended 31 August 2013formed part of the overall insurance cover for the academy.

13. TANGIBLE FIXED ASSETS

Freeholdproperty

Plant andmachinery

Motorvehicles

Fixtures andfittings

Computerequipment Total

£ £ £ £ £ £

Cost

Additions 225,352 60,656 - 2,029 56,181 344,218Transfer on conversion 17,752,228 31,847 10,800 3,000 174,142 17,972,017

At 31 August 2013 17,977,580 92,503 10,800 5,029 230,323 18,316,235

Depreciation

Charge for the period 337,989 14,596 3,825 3,440 108,979 468,829

At 31 August 2013 337,989 14,596 3,825 3,440 108,979 468,829

Net book value

At 31 August 2013 17,639,591 77,907 6,975 1,589 121,344 17,847,406

The freehold property has been included in the accounts based on the valuation arranged by the EFA usingdepreciated replacement cost. The Governors believe that the cost of obtaining a more detailed valuation outweighsthe benefit.

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14. DEBTORS

2013 £

Trade debtors 397Other debtors 46,599Prepayments and accrued income 352,595

399,591

15. CREDITORS:Amounts falling due within one year

2013 £

Trade creditors 110,322Other taxation and social security 104,967Other creditors 77,275Accruals and deferred income 167,376

459,940

£Deferred income

Deferred trip income 62,505Other deferred income 18,493Formula Capital Grant 27,930Insurance rebate 26,992

Deferred income at 31 August 2013 135,920

Page 27




16. STATEMENT OF FUNDS

Broughtforward

Incomingresources

Resourcesexpended

Transfersin/out

Gains/(losses)

Carriedforward

£ £ £ £ £ £

Unrestricted funds

Unrestricted funds - 284,804 (19,388) - - 265,416

Restricted funds

General annual grant(GAG) - 9,799,239 (9,506,671) (64,693) - 227,875

Pupil premium - 167,585 (167,585) - - -SEN funding - 317,448 (317,448) - - -Educational trips - 239,162 (239,162) - - -S.C.I.T.T grant - 19,013 (5,596) - - 13,4171 to 1 Tuition - 39,000 (39,000) - - -Standards funds - 25,568 (25,568) - - -Golden hello - 11,296 (11,296) - - -PE Teachers grant - 11,425 (11,425) - - -Other restricted funds - 31,530 (31,530) - - -Pension reserve - (1,504,000) (57,000) - (407,000) (1,968,000)

- 9,157,266 (10,412,281) (64,693) (407,000) (1,726,708)

Restricted fixed asset funds

Restricted FixedAssets Fund - 17,972,018 (468,829) 344,218 - 17,847,407

Capital maintenancefunds - 698,972 (30,142) (279,525) - 389,305

- 18,670,990 (498,971) 64,693 - 18,236,712

Total restricted funds - 27,828,256 (10,911,252) - (407,000) 16,510,004

Total of funds - 28,113,060 (10,930,640) - (407,000) 16,775,420

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. The transfer out of £64,693represents the costs of tangible fixed assets, which are shown within the restricted fixed assets fund.

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.

Pupil Premium

This represents funding used to help raise achievement and improve outcomes for pupils from low income familieswho are eligible for free school meals.

Special Educational Needs (SEN)

This represents allocated funding for special educational needs pupils.

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16. STATEMENT OF FUNDS (continued)

Educational Trips

This represents contributions made by parents to the running of educational visits for the pupils of the academy andthe associated costs of running the trips.

S.C.I.T.T - School Centred Initial Teacher Training

This represents funding towards graduate students training who are taught by practising teachers in a schoolenvironment.

1 to 1 Tuition

This represents the funding to cover the cost of one to one tuition time carried out by qualified teachers.

Standards funds

This represents the funding relating to the secondment of advanced skills teachers to other schools.

Golden Hello

This represents the funding for the Initial Teacher Training (ITT) scheme to postgraduate trainee teachers who havecompleted the ITT course.

PE Teachers

This represents the funding relating to the release of their PE teachers from timetable for one day a week: to providespecialist PE and sport support to local schools and within their own school; to embed good practice; and to providemore competitive sport for all pupils, including the School Games.

Other Restricted Funds

This represents other small amounts of funding received for specific purposes.

Pension reserve

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

Restricted Fixed Asset Funds

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. The transfer in of £344,218 represents the costsof assets acquired in the year which have been funded by GAG funding (£64,693) and Capital Maintenance fund(£279,525).

Capital Maintenance Fund

This fund represents capital funding received from the EFA to provide for maintenance of capital assets. The transferout of £279,525 represents the costs of tangible fixed assets, which are shown within the restricted fixed assets fund.

Page 29




SUMMARY OF FUNDS

Broughtforward

Incomingresources

Resourcesexpended

Transfersin/out

Gains/(losses)

Carriedforward

£ £ £ £ £ £

General funds - 284,804 (19,388) - - 265,416Restricted funds - 9,157,266 (10,412,281) (64,693) (407,000) (1,726,708)Restricted fixed asset

funds - 18,670,990 (498,971) 64,693 - 18,236,712

- 28,113,060 (10,930,640) - (407,000) 16,775,420

17. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestrictedfunds

Restrictedfunds


fundsTotalfunds

2013£

2013£

2013£

2013£

Tangible fixed assets - - 17,847,406 17,847,406Current assets 191,982 746,736 417,236 1,355,954Creditors due within one year 73,434 (505,444) (27,930) (459,940)Provisions for liabilities and charges - (1,968,000) - (1,968,000)

265,416 (1,726,708) 18,236,712 16,775,420

18. NET CASH FLOW FROM OPERATING ACTIVITIES

Period ended31 August

2013£

Net incoming resources before revaluations 17,182,420Returns on investments and servicing of finance (862)Assets transferred on conversion (16,468,018)Depreciation of tangible fixed assets 468,829Increase in debtors (399,591)Increase in creditors 459,941FRS 17 adjustments 57,000

Net cash inflow from operations 1,299,719

19. ANALYSIS OF CHANGES IN NET FUNDS

1 April Cash flow

Othernon-cashchanges 31 August

2012 2013£ £ £ £

Cash at bank and in hand: - 956,363 - 956,363

Net funds - 956,363 - 956,363

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20. CONVERSION TO AN ACADEMY TRUST

On 1 April 2012 Helena Romanes School & Sixth Form Centre converted to academy trust status under theAcademies Act 2010 and all the operations and assets and liabilities were transferred to The Helena RomanesSchool from Essex County Council for £nil consideration.

The transfer has been accounted for using the acquisition method. The assets and liabilities transferred were valuedat their fair value and recognised in the Balance Sheet under the appropriate headings with a corresponding netamount recognised in the Statement of Financial Activities as voluntary income.

The following table sets out the fair values of the identifiable assets and liabilities transferred and an analysis of theirrecognition in the Statement of Financial Activities.

Unrestrictedfunds

£

Restrictedfunds

£


funds£

Totalfunds

£

Tangible fixed assets

- Freehold/leasehold land and buildings - - 17,752,228 17,752,228 - Other tangible fixed assets - - 219,790 219,790

Budget surplus/(deficit) on LA funds 19,156 - - 19,156LGPS pension surplus/(deficit) - (1,504,000) - (1,504,000)

Net assets/(liabilities) 19,156 (1,504,000) 17,972,018 16,487,174

The above net assets include £19,156 that were transferred as cash.

21. 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 March 2010.

Contributions amounting to £76,986 were payable to the scheme at 31 August 2013 and are included withincreditors.

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, the

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21. PENSION COMMITMENTS (continued)

Account 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.

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.

Page 32





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 period ended 31 August 2013 was £347,000, of which employer's contributions totalled£265,000 and employees' contributions totalled £82,000. The agreed contribution rates for future years are 12.3%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 theperiod. 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:


2013 £

Present value of funded obligations (2,420,000)Fair value of scheme assets 452,000

Net liability (1,968,000)

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


2013 £

Current service cost (213,000)Interest on obligation (128,000)Expected return on scheme assets 19,000

Total (322,000)

Actual return on scheme assets 52,000

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


2013 £

Current service cost 213,000Interest cost 128,000Contributions by scheme participants 82,000Actuarial Losses 441,000Benefits paid (27,000)Defined benefit obligation transferred on conversion 1,583,000

Closing defined benefit obligation 2,420,000

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


2013 £

Expected return on assets 19,000Actuarial gains and (losses) 34,000Contributions by employer 265,000Contributions by employees 82,000Benefits paid (27,000)Fair value of assets transferred on conversion 79,000

452,000

The cumulative amount of actuarial gains and losses recognised in the Statement of Financial Activities was£407,000.

The academy expects to contribute £187,000 to its Defined Benefit Pension Scheme in 2014.

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

2013

Equities %65.00Gilts %8.00Other Bonds %9.00Cash %3.00Property %11.00Alternative Assets %4.00

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

2013

Discount rate for scheme liabilities %4.70Rate of increase in salaries %4.70Rate of increase for pensions in payment / inflation %2.90Inflation assumption (CPI) %2.90Inflation assumption (RPI) %3.70

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

2013

Retiring todayMales 22.7Females 25.3

Retiring in 20 yearsMales 24.2Females 26.9

Amounts for the current period are as follows:

Defined benefit pension schemes

2013 £

Defined benefit obligation (2,420,000)Scheme assets 452,000

Deficit (1,968,000)

Experience adjustments on scheme assets 34,000

22. OPERATING LEASE COMMITMENTS

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

2013£

Expiry date:

Between 2 and 5 years 40,476

There were no operating lease commitments in respect of land and buildings.

23. RELATED PARTY TRANSACTIONS

Owing to the nature of the academy's operations and the composition of the board of trustees being drawn from localpublic and private sector organisations, transactions may take place with organisations in which a governors has aninterest. All transactions involving such organisations are conducted at arm's length and in accordance with theacademy's financial regulations and normal procurement procedures.

There were no other related party transactions, considered material to disclose, during the period ended 31 August2013.

24. CASH BALANCE

The cash balance reported represents monies received in advance of expenditure that is almost entirely committedby the academy's governors for future costs.

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THE HELENA ROMANES SCHOOL