Charity registratlon nurnb•r 1118598 Company r•gl$tratlon number 06067557 {England and Wal•$l LALEHAM LEA SCHOOL (LIMITED BY GUARANTEE) ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 LALEHAM LEA SCHOOL LEGAL AND ADMINISTRATIVE INFORMATION Governors E O'Domhn8111 M Ryan Father P M L Sebastian Y Epale IApp(trlnled 19 Novémber 20221 IAppointed 21 M8rch 20241 IAppoinlod 28 Seplombef 20231 N Frankopan DT M HowArd Secrntary E Jon&8 Charlty numbèr 1118598 Company numb•r 06067557 Rg919tered offlco 29 Peaks Hlll Purféy Surrey CR8 3JJ AudSlor Baxter & Co Lynwood House Crofton Road Orplnglon Kent BR6 8QE LALEHAM LEA SCHOOL CONTENTS Page Gov&mors' report stat8menl of gov8rnors' rèsponslbilltl88 Indewndenl audilofg Mport Statement of llnanclal aclvttl88 Balance Sheet 10 stal8m8nt of cgsh flows 11 Noles lo the financlal 8tst8monts 12-24 LALEHAM LEA SCHOOL GOVERNORS, REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 AUGUST 2023 The governors, who ère also thè Trustee5 and directors of th6 charity for the purposes ol Ihe Companies Act 2006. present their annual Teport and financial slglernents for the year ended 31 Au9USt 2023. Thè flnancial stslements have been prepared in a￿OrdanCe with the accounting policies s&t out in notè I lo th6 nanaal statements and comply with the charit￿S govèrning document. the Companles Acl 2006 and 'A¢¢ounllng and Reporting by Charilies.. Statement of Recomrnended Praclie¢ applicable to charities preparing theii accounts In accordance with the Financial Reporting Standard applIca￿tr in th& UK and Republic of Irdand IFRS 1021- leffeclDia 1 January 20191. Objectlvas and actlvlt106 The charity's objects ore lo advance the Catholic religlon by the conduct of a CalholiG School or by any ancillary or religious or educational actlvliios lor the benefit of th¢ public. The charity aim$ to daliver ils obje¢tlves by foeu$ing on the following k$y aims.. 1. to ensure that all aspects of 8chool life are pemealed by the Catholic ethos of raspect and love for ong's neighbour., 2. to provide a firsl class education lor l)oy8 and aged 3 10 11+: 3. to build e8ch pupil's sell-confidènce so that they are pr8par8d for the opportunities and r03ponsibililigs of th secondary Curriculum 8n¢J service lo the community., 4. to provlde facilit1&$ lor local ¥ducatlonal. family and ￿thOlIC ohild-centred piogramm8S. Publi¢ bentsflt Thè govemors have paid due regard lo guidanee issued by the Charlly Commisslon's general and 3upplam&nlary guidance on public benèfit. We arg also mlndlul of the mquirements ol Calhollc Social Teaching when consldering the advan¢em8nt of gdu¢alion, fee-charging, reviewing our aimy an(J uL>j¥LIIvv$ 81?d planniiig our future a¢ltvilies. Achl•vÈm•nts and porform4nc• Signlf1¢8nl activifygs and &chlevemenl$ against objèctives Children from all backgrounds are welcomed Into the school and pupils banefil from our klnd, caring and div•rs8 communlty. Placès are offer8d followlng an Informal assessment lo asctrrtain the prospective pupils. pace of leamlng lo ensure that thèy can benefit from tho educatlon provlded. Pupll reports are issued Iwi¢e a year and Paranl Evonings are Carried OLrt during the year. Parent and Class Teacher communlcalions are actively 6n¢ouraged. The Independent Schools Inspoctorale carri&d out an Inspection ol the school from 21st Fotsruary to 25th February 2022 and found the qualily ol thè pupils. aeademlc and other 8chlevemenls is excellent. Thtry lound that the quallty of the pupils, personal development is ex¢$llenl and the compliance standards were fully mel. The S8CtkJn 48 Denominallonal Inspectlon wa8 carrfed out in October 2019. The Inspector's conduslon is that 'Lal&ham Lea is an Oulslanding Catholic School, and 'Religious Education is exceptlonally well 18d wlth th9 partnership between leaders at all lev¥ls being highly effectlva,. Our strong commitment to safeguardlng remalns paramount and our training of all staff, Governors and volunt8•r3 Ss ongoing. During the year, the pupils enjoyed curriculum 18ssons, IndNidual Instrurnenlal le550ns, LAMDA Inslwcllon 8ncJ in- school clubs. Our pupilg enjoyed rnany educational visits., Years 1 and 2 visitÉd The Horniman Museum, Years 4 and 5 vislled rhe Living R8infor&st and Year 3 went to Morden Hall. In the svmmer, our pupils and parents enjoyed Sports Day held at Purley Spor15 Club. Our Year 6 group enjoyed a residential trip to PGL Marchants Hill and our Year 6 8njoyed a (lay of Aqu8SPOrts. The school welco￿￿ the London Air Ambulance lo the school lo visit the puplls. LALEHAM LEA SCHOOL GOVERNORS. REPORT (INCLUDING DIRECTORS. REPORT) ICONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 There are varied lunchtime and after.school dub activities including Reading club, Verbal and Non-varbal Raasoning. STEM, Art & D8sign. Accelerated Maths, and Bollywood Dancing. LAMDA exams went ahead and excellenl results were achieved. Tennis. squash afjd football w8r8 part of the offgring. All pupils at Laleham Lèa receive a cooked lunch and 8 mornlng snack aach day provided by our onslte catering team, Thls is Induded wlthln our schorA faas. Our Nativity plays and C8ro15 Concort. held In thè auturnn t8m) r&lurn8d to thè stage. Th8 Easter Concert and our Year 5 and Yoar 6 productlon ol 'Robin and th8 Sherwood Hoodiesl, the musical. held laler In tho year, wèrè P8rformed live for the parents. Thls was followed by our annual Prlza-Giving c8r8mony celebrating the succe8$è8 of our pupils. Our Year 5 and 6 pupils took part in a concert ￿th anolh8r local Indepgrhdgnt Joined school. Thls Music Feslival SLicces8fully took place al Sl Marks Church. Tha schoo5 finished the 2023 academle year with 138 on roll, which was a slight dacraese from the previous year 12022'.1421. Applications for future years are strong with school and nursery applicalions already reeaivad lor 20251 During th8 COtJr8& of Ihe year, the company employed six staff.. five full-time and ona part-time. Of th& five full-limè, one was a Te8ch8r and lour were 3UPPOrt staff. Th8 one part-lime memb8r of staff was a teacher. In Bddilion, th8 sch￿1 usod quallfled sports coach85 for PE lessons. Of the I￿¥ full-tlme staff sueeèssfully recmllgd. one was a n•w Deputy Héad Taacher. a School Buslnes8 Menagar and a Slle Manager. L8Saham Lea Sehool operates for 173 days a year. Tha school is opan from 8.20am to 3.25pm. In additlon lo the ordlnary school day, wè oporale an EArly Birds provislon startlng at 8am and a L819 Leavers provlsltsn, which rerllains open until 5.30pm. 80th provlsions are well allended. Laleham Lea succèssfully ottalned Ihe EcowSchool8 Gr88n Flag Accradltatlon through tha hard work 8nd dedication of our school communlty led by our Eco Councll. As part of this process the school look part In an Eco doy. where all pupll8 and staff were inv5ted lo dress up in Eco colours. Lal8ham LeA èntered th8 ISA Art Compelllion 8nd our Year 4 class project was successful and was Awarded the honour ol'rnost craative,. The Laleham Le8 Pargnt T&acther A880clatlon successfully relaunched in Fobruary 2023. A PTA uniform sa18 and an Ice Crèam sale look plac¥ In the summer i•m. We are an equal opportunity organlsatlon with a working envlronmènl free from dlsGrirninallon of all klnds an(J a wllllngn?ss lo makg roasonable adlu5tm8nts lo working practices to meel the negds of our staff. Charltablfr actlvltS•8 Caring for thos& less fortunate thBn ourselvès Is a recurring theme in the life of the school. Harvest Festival and Christmss gifts were donated to the Purfey Food Hub. Other charities Ih8t have been supported include the Samaritan Purse and successfully ralslng £700 for CAFOD. Oneo agaln, il has b88n possible lo olf8r some limrted bursary provlsion, whSch was made avallable lo 11 during the year. LALEHAM LEA SCHOOL GOVERNORS. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 Financlal review Thrs year th8 sCh(X￿ recorded a deficit of £26,207 12022 surplus of £141.6491. Unrestricted r8serv&s as planned stood al £725,202 and have been relained for futu￿ use as d&scrib8d below. All Income and tax exempllon savlngsthusiness rate reduetions are applled for the charitable purp08e8 of the company and indirectly help to support state school and community links. Nev8theless we ¢annol reclalrn VAT Input costs and also pay tsx as an employer through our share of National Insurance contribution3. Reserves policy Th6 School Carries minlmal free Rasarves wilh day lo doy operational costs mel through wod(Ing capital wlthovl ra(x)ur8e to borrowlngs. 11 Ss the Intention lo retaln modegl reseThes in Ihg order of three lo six month5 01 operallng costs to provldo for conlingencieg. fiscal domands, the on-going slabilily and financlal securlly of the School, ils commitments 8nd undertakings. Budgellng pollcy The School Buslno55 Manager h88 prepared a budget lor the yeer endlng 31 August 2024 and maint8ln8 a cawftjl ragular chack over the flnancial situation of the Company, moniloTad by Governors. The Pay Ctsmmillaè, comprlsSng ol three Govemors, meets regularfy lo monllor staff salarles and maka 8nnual Increasès. Bank accrjunl The Chartly's funds ara kept in current and deposll accounts Sn order to maxlm18e returns and to saf&guard deposits, even though the deposll accovnt ra¢68 are prégenlly very low. Plan* for futurg perlod8 The School operates a Ihree-y&8r slrateglc development plan that 15 reported on to the Board and formally revlèwed by Ihe Governors. Tha Governors. plans am to further extend our environmèntal Initlallve$ and to cary on ¢onlinuou$ly Improving the sd)ool sile wlth thè aim of culllng our carbon foolprinl. The Learning Environment w511 be conlinuously improved upon and upgraded as wlll the investm*nl in technology. Govèrnors are looking al ways ol improving the school ground$ lo maximise the u$¢ ol available Space and ensuring th81 all provislon is sale and ol good quality. Suslainlng the Standards ol excellencé levldencèd by the ISI Inspectlon of February 20221 is a fwAI point of our oxlended curriculum and plannlng, wllh additlonal investment in staffing lo ensuig that the pupi18 continu¥ to receive an excell8nl curriculum and extra-curricular off&r provlding breadth ènd depth in their educatlon. The Haa(J Teacher and Curriculum Sub Commltlae rigorously review tho Curriculum from EYFS to Yr. 6, extending learnlng opportunities for all pupils and 8UPPOrting the well-rounded development of the pupils. wilh the aim ol exlending spocialisl teaching al every opportunity. structure, govemancg and management Lalèharn Lea School Is 8 charitable company limited by guarantee govemed by its Memorandum and Artielès of Association daled 25 January 2007. The school remaln8d dorrnanl until 1st Aprll 2009 when it ¢ornmenced Iradlng. The school has no share capital 8nd is Ilmiled by 9Ll8f8niee. 11 r8 regist&rèd as a charity with th¢ Charlty CommissK)n. All Governors give their timè frèely. LALEHAM LEA SCHOOL GOVERNORS. REPORT (INCLUDING DIRECTORS. REPORT) {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 The gov8mors. who 8ra also thg directors for the purpose of ¢ompany18W. 8nd who servad during the year and up to the d8t& ol signature of the financial statements wor8.. M D Barras {Resign8d 23 S8p18mber 20231 K Barry {Rgsigned 31 August 20231 S Bignell (Resigned 21 January 20241 M Brvnn1 (Resigned 18 Febru8ry 20231 K Dwyer-Burchill (Resigned 3 April 20231 E O'Domhnaill M Ryan Father P M L Sebastian Y Epale N FrankopBn Dr M Howard (Appointed 19 Novembor 2022} (Appointèd 21 March 20241 {Appolnt&d 28 S8pl8mber 20231 Recruitm8nl ènd appolntmonl of Irustgos The full Govarnlng Board meets In lull at lea513 tlmes a year. Currently all gov8manc8 dodslons arè ro￿rred lo thè full Board meÈllngs. Thè Board $88k5 Ic> recruit Govemors from wilhln tho local community who have an interest in davèloping the Catholic tharacter ol the school. and 8UPPOrting the aducalional n8eds ol the chlldren al Laloham Le8. Inductlon and ongoSng IT8lning Ss providtrd by the school. the Diocese and the Local Auihorlty. None of the govemoTS has any benelclal Interest in thè company. All of the govgmors are fnombers of the company and guarantee to contribute £1 in the evenl of a winding up. Audltor In ac¢ordance with tha comp8nls artlcles, a resolution proposlng that B8Xt&r & Co be raappoln16d as audllor of th& company wlll b8 put al a General MgeUn9. Rl#k managemtrnt The Governor$ have a duty to Idenllfy and review th8 risks lo whlch the charlty Is 8xpos&d and lo ensure approprlate controls are In place to provide re8sonable assurance ag8lnst Iroud and error. Th13 report has been prapared in accordance with tho special provlsions of Part 15 01 th8 Cornpaniès Acl 2006 rolallng to $m811 companies. The governors, report wa5 approved by thg Board of Govarnorg. M Ryan Chalr of Govomors 14 May 2024 LALEHAM LEA SCHOOL STATEMENT OF GOVERNORS. RESPONSIBILITIES FOR THE YEAR ENDED 31 AUGUST 2023 The governors. who are also th6 directorg ol Laleham Lea School lor the purpose of company law, are responsibl8 lor prepariny Ihe Goveryiors. Report ai)d the finan¢i81 statements in accordance wlth appIl￿ble law and United Kingdom Accounting Stsndards IUnitellows= 2023 2022 Deferred income is Included withSn'. Curr8nl liabillllas 433,011 390.917 Mov6m8nls In the year D8ferred income at 1 September 2022 Rel8ased from prevlous perSods Rèsources dgferred in Iho year 390,917 1390,9171 433,011 349,875 1349,8751 390,917 D8f6rr&¢J inci)m8 at 31 August 2023 433,011 390,917 21 LALEHAM LEA SCHOOL NOTES TO THE FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 18 Retlrement bomfft schem83 The Charfty's empk>yaes bolong to principal p&nsion schemes.. the Teachera. Pansion Schemo England and Walès ITPSI lor arademic and related stBff'. and the TPT Penslon S¢h8me ITPTI for ntsn-teaching Staff. The pension charge for th8 year includes ctrntributions payable lo tho TPS 01 £98,18712022 £87,693) and contributions payable lo the TPT scheme of £13,10112022 £11.1921. Contributions amounting to £nil12021 £12.5141 were payable to the sch8mes at 31 August 2023 and are included withln eredilors. Toa¢h•r8' P•nslon Sch•m• The Tg8chers' Pension Scheme ITPSI 18 a stalulory, conlrlbutory. dellned beneflt schern8, 9overned by the T8achers' Pension Scheme Ragulalion5 2014. Membership is aLtiomalic for taach8rs in the Chanty bul Bll teacher8 havè the option to opt out of the TPS ftsllowing enrolrnent. The TPS is an unfunded schema to which both the member and employer m8ke8 conlrlbullons. as a pgrcenlage of salary. Those contributions are credlted to the Exchèquef. Retirgmanl and other pension ben&llts Bre paid by publi¢ funds provided by Parflam8nl. Valuatlon oltho Téachgr•' Pon*lon Schemo Th6 Govèrnment Actuary, using normal 8Ctuarial prlnclp18s, conducts A tormal acluarlal rèview of tha TPS ac¢ordanc8 with the Public Setvice Penslons Ivaluatlons and Employ8r Cosl Cap} Dirgclions 2014 published by HM Treasury every 4 yèars. The alm ol the review is to spècify th8 18V81 Of future conidbutions. Actuarial scheme valuatlons are dgpÈndènt on as8umpllons abovl lh6 value of futur8 eosts, d•sign of ban61ils and many other factors. The lalesl actuarial valuatkjn ol the TPS was carried out as al 31 Maroh 2016. The V8IL*aUon report was publlshed by th8 Dopartment for Education on 5 March 2019. The koy tslemenls of the valuation and subsequent consultation are.. employer conlribvlion rotes set al 23.68% of ponslonable pay {Including a 0.08% ernployer adminislrallon18vyI total schèmè liabi1S1ies Ipensions currently In payment and the esllmaled cost ol future b8nefltsl for serylce lo the effoelive dale of £218,100 million, and nolion818S$Otslesllm8led futur& conlribulionsl together with the noilonal invostm8nts held 81 tho valuation d8tal of £196,100 million 9lving a notlonal p8st sarvlce defidl of £22,000 mlllion thè SCAPE rate, sel by HMT, is usad lo determine th& nollonal Investment return. The currenl SCAPE rate is 2.4% above the rate ol CPI. The asgumed real rale of return is 2.4% In excess of prices and 2 /0 in excess of eamings. The ratè ol real e8rnings growth l¥ assurned to be 2.2%. The assumed nominal rate of return including eamings growth is 4.45 /.. The nexi v81uatlon result is due to ba implementad from 1 April 2024. A ¢opy of the v81u8llon report and supporting documentalion is on the Teachers, Pgnslons websits. Under the definitions set out In FRS 102, the TPS Is an unfunded multi*rnploy8r pansion scheme. The Charity has accountèd for Its contributions to the 5chem8 BS il il weig a defined contribution scheme. The Charity has sot oul above th8 infomation ovallable on tho seh8rne. -22- LALEHAM LEA SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 19 Unrestrlct•d funds The unrgstrfjcted funds of the charity comprfsa the unaxponded balan¢88 of donatlon$ and grants vthid) ara not subjed to S￿¢if1C c¢ndilions by donors and grantors as to htsw they may bè used. These Include designated funds which have been set aside out of unrestricted fund$ by th8 trustees lor spe¢ific purpostss. At1 Sèptember 2022 Incom5ng r•¥ources Resourcè¥ At 31 August expended 2023 General fur)d$ 751.409 1,199,779 11,226,835) 724,353 Prnvloui year: At1 S*ptem￿r 2021 IncomSng resourc•¥ Resour¢es At 31 Augu¥t expènded 2022 General funds 609,760 1.136,400 1994,7511 751.409 20 Flnanclal ¢ommltm•nt•. guarant¢¢¥ and contlngent Ilabllltles Durlng the year anded 31 Augu812020 tho scliotrl opened its kilchen for meals. A contract was fom)èd with N¢uri5h Contract Caledng Llmlted to superviso and niBnage thè caltr￿ng services. The terni ol this contract is six years from 1 September 2019. If the school decidès to t8rmlnatè this contract before Ihls date they will ba liable lo reimbursè Nourish Contract Cataring Limited for any un.deprecialed inve51menl remaining. A$ 8131 August 2023 the value of this liabilily 16 £2,167 12022.. £3.2501. Ihls value wlll deprèciatè on a slraighl line basi5 In Iln8 with the term of the contra¢l. 21 Operallng1ga8e commltmtsnls L&5800 Al the reporting ond dale the charity had oulslandSng commitments for fulufe mSnlmum leas6 payments under non-cancellable operating leasés, whlth fall due as follc)ws'. 2023 2022 Within one year Be￿een two and five year5 1,843 1,536 1,536 1,843 3,072 22 R•latÈd party tran$actlons Evans & Sons Heating & Coollng Ltd is a rèlalgd paty by virtue of the fact that M Reece (part of thg leadership team) ralalive owns the company. During the year Laleham Lea School recelved income of £nil 12022 - £nill and incurred expenditure of £24012022 - £nill. At 31 August 2023 Ihere was £240 12022.. £nfill due to Evans & Sons Heating & Cooling Ltd, this amount is includad within creditors. -23- LALEHAM LEA SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 23 Anafy$l¥ of changgs in net fund Tha charity had no material dèt>t during the year. 24 Ca$h g•n•rat•d from operatlons 2023 2022 (Deficllysurpus for th& ye8r 127,0561 141.649 Adjuslmenls for.. Investment income recognlsed in statement of financial actlvltl8s Depreclation and Impalrmènt ol tanglble fixed assets 15,1221 40,476 12,5061 36,902 Movam•nl8 in ¥Yorklng capital.. Ilncreasel in debtors Increase in uedilor In¢re8sè In dèfèrred inoim& 133,297 178.218 42,094 150,1251 47,745 41,042 Cash g•n•rat•d from op•ratlon• 195.313 214,707 24- Charity registratlon nurnb•r 1118598 Company r•gl$tratlon number 06067557 {England and Wal•$l LALEHAM LEA SCHOOL (LIMITED BY GUARANTEE) ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 LALEHAM LEA SCHOOL LEGAL AND ADMINISTRATIVE INFORMATION Governors E O'Domhn8111 M Ryan Father P M L Sebastian Y Epale IApp(trlnled 19 Novémber 20221 IAppointed 21 M8rch 20241 IAppoinlod 28 Seplombef 20231 N Frankopan DT M HowArd Secrntary E Jon&8 Charlty numbèr 1118598 Company numb•r 06067557 Rg919tered offlco 29 Peaks Hlll Purféy Surrey CR8 3JJ AudSlor Baxter & Co Lynwood House Crofton Road Orplnglon Kent BR6 8QE LALEHAM LEA SCHOOL CONTENTS Page Gov&mors' report stat8menl of gov8rnors' rèsponslbilltl88 Indewndenl audilofg Mport Statement of llnanclal aclvttl88 Balance Sheet 10 stal8m8nt of cgsh flows 11 Noles lo the financlal 8tst8monts 12-24 LALEHAM LEA SCHOOL GOVERNORS, REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 AUGUST 2023 The governors, who ère also thè Trustee5 and directors of th6 charity for the purposes ol Ihe Companies Act 2006. present their annual Teport and financial slglernents for the year ended 31 Au9USt 2023. Thè flnancial stslements have been prepared in a￿OrdanCe with the accounting policies s&t out in notè I lo th6 nanaal statements and comply with the charit￿S govèrning document. the Companles Acl 2006 and 'A¢¢ounllng and Reporting by Charilies.. Statement of Recomrnended Praclie¢ applicable to charities preparing theii accounts In accordance with the Financial Reporting Standard applIca￿tr in th& UK and Republic of Irdand IFRS 1021- leffeclDia 1 January 20191. Objectlvas and actlvlt106 The charity's objects ore lo advance the Catholic religlon by the conduct of a CalholiG School or by any ancillary or religious or educational actlvliios lor the benefit of th¢ public. The charity aim$ to daliver ils obje¢tlves by foeu$ing on the following k$y aims.. 1. to ensure that all aspects of 8chool life are pemealed by the Catholic ethos of raspect and love for ong's neighbour., 2. to provide a firsl class education lor l)oy8 and aged 3 10 11+: 3. to build e8ch pupil's sell-confidènce so that they are pr8par8d for the opportunities and r03ponsibililigs of th secondary Curriculum 8n¢J service lo the community., 4. to provlde facilit1&$ lor local ¥ducatlonal. family and ￿thOlIC ohild-centred piogramm8S. Publi¢ bentsflt Thè govemors have paid due regard lo guidanee issued by the Charlly Commisslon's general and 3upplam&nlary guidance on public benèfit. We arg also mlndlul of the mquirements ol Calhollc Social Teaching when consldering the advan¢em8nt of gdu¢alion, fee-charging, reviewing our aimy an(J uL>j¥LIIvv$ 81?d planniiig our future a¢ltvilies. Achl•vÈm•nts and porform4nc• Signlf1¢8nl activifygs and &chlevemenl$ against objèctives Children from all backgrounds are welcomed Into the school and pupils banefil from our klnd, caring and div•rs8 communlty. Placès are offer8d followlng an Informal assessment lo asctrrtain the prospective pupils. pace of leamlng lo ensure that thèy can benefit from tho educatlon provlded. Pupll reports are issued Iwi¢e a year and Paranl Evonings are Carried OLrt during the year. Parent and Class Teacher communlcalions are actively 6n¢ouraged. The Independent Schools Inspoctorale carri&d out an Inspection ol the school from 21st Fotsruary to 25th February 2022 and found the qualily ol thè pupils. aeademlc and other 8chlevemenls is excellent. Thtry lound that the quallty of the pupils, personal development is ex¢$llenl and the compliance standards were fully mel. The S8CtkJn 48 Denominallonal Inspectlon wa8 carrfed out in October 2019. The Inspector's conduslon is that 'Lal&ham Lea is an Oulslanding Catholic School, and 'Religious Education is exceptlonally well 18d wlth th9 partnership between leaders at all lev¥ls being highly effectlva,. Our strong commitment to safeguardlng remalns paramount and our training of all staff, Governors and volunt8•r3 Ss ongoing. During the year, the pupils enjoyed curriculum 18ssons, IndNidual Instrurnenlal le550ns, LAMDA Inslwcllon 8ncJ in- school clubs. Our pupilg enjoyed rnany educational visits., Years 1 and 2 visitÉd The Horniman Museum, Years 4 and 5 vislled rhe Living R8infor&st and Year 3 went to Morden Hall. In the svmmer, our pupils and parents enjoyed Sports Day held at Purley Spor15 Club. Our Year 6 group enjoyed a residential trip to PGL Marchants Hill and our Year 6 8njoyed a (lay of Aqu8SPOrts. The school welco￿￿ the London Air Ambulance lo the school lo visit the puplls. LALEHAM LEA SCHOOL GOVERNORS. REPORT (INCLUDING DIRECTORS. REPORT) ICONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 There are varied lunchtime and after.school dub activities including Reading club, Verbal and Non-varbal Raasoning. STEM, Art & D8sign. Accelerated Maths, and Bollywood Dancing. LAMDA exams went ahead and excellenl results were achieved. Tennis. squash afjd football w8r8 part of the offgring. All pupils at Laleham Lèa receive a cooked lunch and 8 mornlng snack aach day provided by our onslte catering team, Thls is Induded wlthln our schorA faas. Our Nativity plays and C8ro15 Concort. held In thè auturnn t8m) r&lurn8d to thè stage. Th8 Easter Concert and our Year 5 and Yoar 6 productlon ol 'Robin and th8 Sherwood Hoodiesl, the musical. held laler In tho year, wèrè P8rformed live for the parents. Thls was followed by our annual Prlza-Giving c8r8mony celebrating the succe8$è8 of our pupils. Our Year 5 and 6 pupils took part in a concert ￿th anolh8r local Indepgrhdgnt Joined school. Thls Music Feslival SLicces8fully took place al Sl Marks Church. Tha schoo5 finished the 2023 academle year with 138 on roll, which was a slight dacraese from the previous year 12022'.1421. Applications for future years are strong with school and nursery applicalions already reeaivad lor 20251 During th8 COtJr8& of Ihe year, the company employed six staff.. five full-time and ona part-time. Of th& five full-limè, one was a Te8ch8r and lour were 3UPPOrt staff. Th8 one part-lime memb8r of staff was a teacher. In Bddilion, th8 sch￿1 usod quallfled sports coach85 for PE lessons. Of the I￿¥ full-tlme staff sueeèssfully recmllgd. one was a n•w Deputy Héad Taacher. a School Buslnes8 Menagar and a Slle Manager. L8Saham Lea Sehool operates for 173 days a year. Tha school is opan from 8.20am to 3.25pm. In additlon lo the ordlnary school day, wè oporale an EArly Birds provislon startlng at 8am and a L819 Leavers provlsltsn, which rerllains open until 5.30pm. 80th provlsions are well allended. Laleham Lea succèssfully ottalned Ihe EcowSchool8 Gr88n Flag Accradltatlon through tha hard work 8nd dedication of our school communlty led by our Eco Councll. As part of this process the school look part In an Eco doy. where all pupll8 and staff were inv5ted lo dress up in Eco colours. Lal8ham LeA èntered th8 ISA Art Compelllion 8nd our Year 4 class project was successful and was Awarded the honour ol'rnost craative,. The Laleham Le8 Pargnt T&acther A880clatlon successfully relaunched in Fobruary 2023. A PTA uniform sa18 and an Ice Crèam sale look plac¥ In the summer i•m. We are an equal opportunity organlsatlon with a working envlronmènl free from dlsGrirninallon of all klnds an(J a wllllngn?ss lo makg roasonable adlu5tm8nts lo working practices to meel the negds of our staff. Charltablfr actlvltS•8 Caring for thos& less fortunate thBn ourselvès Is a recurring theme in the life of the school. Harvest Festival and Christmss gifts were donated to the Purfey Food Hub. Other charities Ih8t have been supported include the Samaritan Purse and successfully ralslng £700 for CAFOD. Oneo agaln, il has b88n possible lo olf8r some limrted bursary provlsion, whSch was made avallable lo 11 during the year. LALEHAM LEA SCHOOL GOVERNORS. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 Financlal review Thrs year th8 sCh(X￿ recorded a deficit of £26,207 12022 surplus of £141.6491. Unrestricted r8serv&s as planned stood al £725,202 and have been relained for futu￿ use as d&scrib8d below. All Income and tax exempllon savlngsthusiness rate reduetions are applled for the charitable purp08e8 of the company and indirectly help to support state school and community links. Nev8theless we ¢annol reclalrn VAT Input costs and also pay tsx as an employer through our share of National Insurance contribution3. Reserves policy Th6 School Carries minlmal free Rasarves wilh day lo doy operational costs mel through wod(Ing capital wlthovl ra(x)ur8e to borrowlngs. 11 Ss the Intention lo retaln modegl reseThes in Ihg order of three lo six month5 01 operallng costs to provldo for conlingencieg. fiscal domands, the on-going slabilily and financlal securlly of the School, ils commitments 8nd undertakings. Budgellng pollcy The School Buslno55 Manager h88 prepared a budget lor the yeer endlng 31 August 2024 and maint8ln8 a cawftjl ragular chack over the flnancial situation of the Company, moniloTad by Governors. The Pay Ctsmmillaè, comprlsSng ol three Govemors, meets regularfy lo monllor staff salarles and maka 8nnual Increasès. Bank accrjunl The Chartly's funds ara kept in current and deposll accounts Sn order to maxlm18e returns and to saf&guard deposits, even though the deposll accovnt ra¢68 are prégenlly very low. Plan* for futurg perlod8 The School operates a Ihree-y&8r slrateglc development plan that 15 reported on to the Board and formally revlèwed by Ihe Governors. Tha Governors. plans am to further extend our environmèntal Initlallve$ and to cary on ¢onlinuou$ly Improving the sd)ool sile wlth thè aim of culllng our carbon foolprinl. The Learning Environment w511 be conlinuously improved upon and upgraded as wlll the investm*nl in technology. Govèrnors are looking al ways ol improving the school ground$ lo maximise the u$¢ ol available Space and ensuring th81 all provislon is sale and ol good quality. Suslainlng the Standards ol excellencé levldencèd by the ISI Inspectlon of February 20221 is a fwAI point of our oxlended curriculum and plannlng, wllh additlonal investment in staffing lo ensuig that the pupi18 continu¥ to receive an excell8nl curriculum and extra-curricular off&r provlding breadth ènd depth in their educatlon. The Haa(J Teacher and Curriculum Sub Commltlae rigorously review tho Curriculum from EYFS to Yr. 6, extending learnlng opportunities for all pupils and 8UPPOrting the well-rounded development of the pupils. wilh the aim ol exlending spocialisl teaching al every opportunity. structure, govemancg and management Lalèharn Lea School Is 8 charitable company limited by guarantee govemed by its Memorandum and Artielès of Association daled 25 January 2007. The school remaln8d dorrnanl until 1st Aprll 2009 when it ¢ornmenced Iradlng. The school has no share capital 8nd is Ilmiled by 9Ll8f8niee. 11 r8 regist&rèd as a charity with th¢ Charlty CommissK)n. All Governors give their timè frèely. LALEHAM LEA SCHOOL GOVERNORS. REPORT (INCLUDING DIRECTORS. REPORT) {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 The gov8mors. who 8ra also thg directors for the purpose of ¢ompany18W. 8nd who servad during the year and up to the d8t& ol signature of the financial statements wor8.. M D Barras {Resign8d 23 S8p18mber 20231 K Barry {Rgsigned 31 August 20231 S Bignell (Resigned 21 January 20241 M Brvnn1 (Resigned 18 Febru8ry 20231 K Dwyer-Burchill (Resigned 3 April 20231 E O'Domhnaill M Ryan Father P M L Sebastian Y Epale N FrankopBn Dr M Howard (Appointed 19 Novembor 2022} (Appointèd 21 March 20241 {Appolnt&d 28 S8pl8mber 20231 Recruitm8nl ènd appolntmonl of Irustgos The full Govarnlng Board meets In lull at lea513 tlmes a year. Currently all gov8manc8 dodslons arè ro￿rred lo thè full Board meÈllngs. Thè Board $88k5 Ic> recruit Govemors from wilhln tho local community who have an interest in davèloping the Catholic tharacter ol the school. and 8UPPOrting the aducalional n8eds ol the chlldren al Laloham Le8. Inductlon and ongoSng IT8lning Ss providtrd by the school. the Diocese and the Local Auihorlty. None of the govemoTS has any benelclal Interest in thè company. All of the govgmors are fnombers of the company and guarantee to contribute £1 in the evenl of a winding up. Audltor In ac¢ordance with tha comp8nls artlcles, a resolution proposlng that B8Xt&r & Co be raappoln16d as audllor of th& company wlll b8 put al a General MgeUn9. Rl#k managemtrnt The Governor$ have a duty to Idenllfy and review th8 risks lo whlch the charlty Is 8xpos&d and lo ensure approprlate controls are In place to provide re8sonable assurance ag8lnst Iroud and error. Th13 report has been prapared in accordance with tho special provlsions of Part 15 01 th8 Cornpaniès Acl 2006 rolallng to $m811 companies. The governors, report wa5 approved by thg Board of Govarnorg. M Ryan Chalr of Govomors 14 May 2024 LALEHAM LEA SCHOOL STATEMENT OF GOVERNORS. RESPONSIBILITIES FOR THE YEAR ENDED 31 AUGUST 2023 The governors. who are also th6 directorg ol Laleham Lea School lor the purpose of company law, are responsibl8 lor prepariny Ihe Goveryiors. Report ai)d the finan¢i81 statements in accordance wlth appIl￿ble law and United Kingdom Accounting Stsndards IUnitellows= 2023 2022 Deferred income is Included withSn'. Curr8nl liabillllas 433,011 390.917 Mov6m8nls In the year D8ferred income at 1 September 2022 Rel8ased from prevlous perSods Rèsources dgferred in Iho year 390,917 1390,9171 433,011 349,875 1349,8751 390,917 D8f6rr&¢J inci)m8 at 31 August 2023 433,011 390,917 21 LALEHAM LEA SCHOOL NOTES TO THE FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 18 Retlrement bomfft schem83 The Charfty's empk>yaes bolong to principal p&nsion schemes.. the Teachera. Pansion Schemo England and Walès ITPSI lor arademic and related stBff'. and the TPT Penslon S¢h8me ITPTI for ntsn-teaching Staff. The pension charge for th8 year includes ctrntributions payable lo tho TPS 01 £98,18712022 £87,693) and contributions payable lo the TPT scheme of £13,10112022 £11.1921. Contributions amounting to £nil12021 £12.5141 were payable to the sch8mes at 31 August 2023 and are included withln eredilors. Toa¢h•r8' P•nslon Sch•m• The Tg8chers' Pension Scheme ITPSI 18 a stalulory, conlrlbutory. dellned beneflt schern8, 9overned by the T8achers' Pension Scheme Ragulalion5 2014. Membership is aLtiomalic for taach8rs in the Chanty bul Bll teacher8 havè the option to opt out of the TPS ftsllowing enrolrnent. The TPS is an unfunded schema to which both the member and employer m8ke8 conlrlbullons. as a pgrcenlage of salary. Those contributions are credlted to the Exchèquef. Retirgmanl and other pension ben&llts Bre paid by publi¢ funds provided by Parflam8nl. Valuatlon oltho Téachgr•' Pon*lon Schemo Th6 Govèrnment Actuary, using normal 8Ctuarial prlnclp18s, conducts A tormal acluarlal rèview of tha TPS ac¢ordanc8 with the Public Setvice Penslons Ivaluatlons and Employ8r Cosl Cap} Dirgclions 2014 published by HM Treasury every 4 yèars. The alm ol the review is to spècify th8 18V81 Of future conidbutions. Actuarial scheme valuatlons are dgpÈndènt on as8umpllons abovl lh6 value of futur8 eosts, d•sign of ban61ils and many other factors. The lalesl actuarial valuatkjn ol the TPS was carried out as al 31 Maroh 2016. The V8IL*aUon report was publlshed by th8 Dopartment for Education on 5 March 2019. The koy tslemenls of the valuation and subsequent consultation are.. employer conlribvlion rotes set al 23.68% of ponslonable pay {Including a 0.08% ernployer adminislrallon18vyI total schèmè liabi1S1ies Ipensions currently In payment and the esllmaled cost ol future b8nefltsl for serylce lo the effoelive dale of £218,100 million, and nolion818S$Otslesllm8led futur& conlribulionsl together with the noilonal invostm8nts held 81 tho valuation d8tal of £196,100 million 9lving a notlonal p8st sarvlce defidl of £22,000 mlllion thè SCAPE rate, sel by HMT, is usad lo determine th& nollonal Investment return. The currenl SCAPE rate is 2.4% above the rate ol CPI. The asgumed real rale of return is 2.4% In excess of prices and 2 /0 in excess of eamings. The ratè ol real e8rnings growth l¥ assurned to be 2.2%. The assumed nominal rate of return including eamings growth is 4.45 /.. The nexi v81uatlon result is due to ba implementad from 1 April 2024. A ¢opy of the v81u8llon report and supporting documentalion is on the Teachers, Pgnslons websits. Under the definitions set out In FRS 102, the TPS Is an unfunded multi*rnploy8r pansion scheme. The Charity has accountèd for Its contributions to the 5chem8 BS il il weig a defined contribution scheme. The Charity has sot oul above th8 infomation ovallable on tho seh8rne. -22- LALEHAM LEA SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 19 Unrestrlct•d funds The unrgstrfjcted funds of the charity comprfsa the unaxponded balan¢88 of donatlon$ and grants vthid) ara not subjed to S￿¢if1C c¢ndilions by donors and grantors as to htsw they may bè used. These Include designated funds which have been set aside out of unrestricted fund$ by th8 trustees lor spe¢ific purpostss. At1 Sèptember 2022 Incom5ng r•¥ources Resourcè¥ At 31 August expended 2023 General fur)d$ 751.409 1,199,779 11,226,835) 724,353 Prnvloui year: At1 S*ptem￿r 2021 IncomSng resourc•¥ Resour¢es At 31 Augu¥t expènded 2022 General funds 609,760 1.136,400 1994,7511 751.409 20 Flnanclal ¢ommltm•nt•. guarant¢¢¥ and contlngent Ilabllltles Durlng the year anded 31 Augu812020 tho scliotrl opened its kilchen for meals. A contract was fom)èd with N¢uri5h Contract Caledng Llmlted to superviso and niBnage thè caltr￿ng services. The terni ol this contract is six years from 1 September 2019. If the school decidès to t8rmlnatè this contract before Ihls date they will ba liable lo reimbursè Nourish Contract Cataring Limited for any un.deprecialed inve51menl remaining. A$ 8131 August 2023 the value of this liabilily 16 £2,167 12022.. £3.2501. Ihls value wlll deprèciatè on a slraighl line basi5 In Iln8 with the term of the contra¢l. 21 Operallng1ga8e commltmtsnls L&5800 Al the reporting ond dale the charity had oulslandSng commitments for fulufe mSnlmum leas6 payments under non-cancellable operating leasés, whlth fall due as follc)ws'. 2023 2022 Within one year Be￿een two and five year5 1,843 1,536 1,536 1,843 3,072 22 R•latÈd party tran$actlons Evans & Sons Heating & Coollng Ltd is a rèlalgd paty by virtue of the fact that M Reece (part of thg leadership team) ralalive owns the company. During the year Laleham Lea School recelved income of £nil 12022 - £nill and incurred expenditure of £24012022 - £nill. At 31 August 2023 Ihere was £240 12022.. £nfill due to Evans & Sons Heating & Cooling Ltd, this amount is includad within creditors. -23- LALEHAM LEA SCHOOL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 23 Anafy$l¥ of changgs in net fund Tha charity had no material dèt>t during the year. 24 Ca$h g•n•rat•d from operatlons 2023 2022 (Deficllysurpus for th& ye8r 127,0561 141.649 Adjuslmenls for.. Investment income recognlsed in statement of financial actlvltl8s Depreclation and Impalrmènt ol tanglble fixed assets 15,1221 40,476 12,5061 36,902 Movam•nl8 in ¥Yorklng capital.. Ilncreasel in debtors Increase in uedilor In¢re8sè In dèfèrred inoim& 133,297 178.218 42,094 150,1251 47,745 41,042 Cash g•n•rat•d from op•ratlon• 195.313 214,707 24- ## **Laleham Lea School** ## Audit Findings and Management Letter _Audit for the year ended 31 August 2023_ Prepared 15[th] March 2024 **Baxter & Co. Chartered Certified Accountants** Lynwood House, Orpington, Kent, BR6 8QE **E:** schools@baxter.co.uk **| T:** 01689 877081 | **W:** www.baxter.co.uk **1** ## **Contents** Introduction ...................................................................................................... 2 The Audit Process ............................................................................................. 3 Audit approach and scope ............................................................................ 3 Significant risk audit areas ................................................................................ 4 Materiality .................................................................................................... 6 Objectivity and Independence...................................................................... 6 Amendments to financial statements .............................................................. 7 Recommendations for the current year ........................................................... 8 Accounting system and Internal control .......................................................... 8 Expected modifications to the auditor’s report ......................................... 11 Significant difficulties encountered during the audit ................................. 11 Significant matters, if any arising from the audit ....................................... 11 Other action points – Reminders and Submissions .................................... 11 **Baxter & Co. Chartered Certified Accountants** Lynwood House, Orpington, Kent, BR6 8QE **E:** schools@baxter.co.uk **| T:** 01689 877081 | **W:** www.baxter.co.uk **2** ## **Introduction** Following completion of our audit fieldwork, we present our audit findings report and management letter for the attention of the Trustees and those charged with governance of Laleham Lea School on the financial statements for the year ended 31 August 2023. This report summarises key issues in connection with the audit of financial statements, which we consider should be drawn to the attention of the Trustees. The report has been prepared for the purpose of recording the audit scope, approach and risk areas and for communicating audit issues raised with those charged with governance. We have listed possible improvements to accounting and internal control systems. This does not comprise a comprehensive statement of all weaknesses that may exist or of all improvements that could be made. It addressed only those matters that have come to our attention as a result of the audit procedures we have performed for the purpose of expressing an opinion on the financial statements. As required by International Standards on Auditing (UK and Ireland) the audit included consideration of internal controls relevant to the preparation of the financial statements in order to design appropriate audit procedures but not for the purpose of expressing an opinion on the effectiveness of internal control. The report has been prepared in compliance for reporting to the and to comply with the provisions of International Standards on Auditing. No reports may be provided to third parties, without our prior consent. Consent will only be granted on the basis that such reports are not prepared with the interest of anyone other than the Charity in mind and we accept no duty of care or responsibility to any other party. The report may not be relied upon for any other purpose. No responsibilities are accepted by Baxter & Co. towards any party acting or refraining from acting as a result of this report. For ease of reference, we have summarised and prioritised our findings below: High priority recommendations 0 Medium priority recommendations 6 Low priority recommendations 2 ~~a~~ **Total 8** High risk: issues where there is a risk of significant financial impact on the Charity that must be addressed immediately. Medium risk: issues where there is a risk of moderate financial impact on the Charity that should be addressed soon; and Low risk: issues that relate to minor control deficiencies or enhancements in control efficiency. These should be addressed within an agreed timescale. If you have any queries regarding the matters raised in this report, or other issues of concern, please contact us as soon as possible. Finally, we would like to express our thanks to all of the Charity’s staff that assisted us in carrying out our work. Baxter & Co. Lynwood House, Crofton Road Orpington Kent BR6 8QE **Baxter & Co. Chartered Certified Accountants** Lynwood House, Orpington, Kent, BR6 8QE **E:** schools@baxter.co.uk **| T:** 01689 877081 | **W:** www.baxter.co.uk **3** ## **The Audit Process** ## **Audit approach and scope** Our general audit approach is determined by our assessment of the audit risk, both in terms of the potential misstatement in the financial statements and of the control environment in which the Trust operates. Our outlined approach is summarised as follows. - we will update our understanding of the Charity and its environment through discussions with management and a review of available financial information; - we will obtain evidence to support material balance sheet accounts and perform analytical review procedures of income and expenditure streams; - we will review the design and implementation of key internal financial control systems, including reviewing the reports issued from the internal assurance reviewer; - we will review the adequacy of material disclosures in the financial statements in accordance with FRS102 and the Charities SORP; - we will review the information in the Trustees’ Report for the financial year ensuring it is consistent with the financial statements; and - we will form an opinion whether the financial statements give a true and fair view of the state of the Trust’s affairs as at 31 August 2023. basis for the preparation of the financial statements and that proper accounting records have been maintained. ISAs also state that “routine, non-complex transactions that are subject to systematic processing are less likely to give rise to significant risks because they have lower inherent risks”. Our work in these areas will be proportionally less than in the significant risk areas. In areas where we identify the potential for significant risk, we will extend our audit testing to include more detailed substantive work. ## **Significant risks** As part of our audit procedures, we are required to consider significant risks that require our attention including: - Whether there is a fraud risk; - The complexity of transactions; - Significance of transactions with related parties; - Degree of subjectivity in the measurement of financial information; and - Transactions outside the normal course of the Charity’s business. ## **Overall audit strategy** We performed a risk based audit, focusing our work on key audit areas. ISAs assume that “significant” risks will arise on most audits. Significant risks are often derived from business risks that may result in a material misstatement, relate to unusual transactions that occur infrequently, or judgemental matters where measurement is uncertain. We held an initial planning meeting with key management and finance staff to ascertain management’s own view of potential audit risk and to gain an understanding of the Trust’s activities. We also developed an in depth understanding of the accounting systems and controls so that we may ensure their adequacy as a The identified significant audit risks were communicated to you in our audit planning letter issued before our main fieldwork began. We now note the work performed and conclusions drawn on the following pages: **Baxter & Co. Chartered Certified Accountants** Lynwood House, Orpington, Kent, BR6 8QE **E:** schools@baxter.co.uk **| T:** 01689 877081 | **W:** www.baxter.co.uk **4** ## **Significant risk audit areas** ||**Significant**
**Risk**|**Explanation of the risk**|**Audit work performed**|**Conclusion**| |---|---|---|---|---| |**1.**|**Revenue**
**recognition**|There is an assumption that revenue recognition is
a fraud risk.
Income from grants should be recognised when the
conditions of recognition have been satisfied.
Income from contracts should be recognised in the
period to which entitlement exists.
Classification of income between restricted and
unrestricted
funds
potentially
relies
on
managements decisions.|We documented systems and controls carrying out
our audit procedures to ensure income is recorded
correctly in the period.
We discussed with Charity finance staff whether
any cases of fraud had occurred during the period.
We also reviewed governors’ minutes of meetings.
We have not been made aware of any fraud during
the period.
Our testing included verifying income to funding
agreements and supporting documentation to
ensure income is recognised in the correct period.
Consideration of whether income had been
correctly
classified
between
restricted
and
unrestricted funds by reviewing and terms and/or
conditions was undertaken.|Our
audit
work
has
not
identified any material errors
relating to income recognition,
whether relating to fraud or
error.| |**2.**|**Management**
**override**|The trustees and management have the primary
responsibility for detection of fraud as part of their
role in preventing fraudulent activity. They should
ensure a robust system of internal controls exist to
facilitate prevention.
Auditing Standards presume a significant risk of
management override of the system of internal
controls.
Our audit work is designed to provide reasonable
assurance that the accounts are free from material
misstatement, whether caused by fraud or error.|During our audit we considered the possibility of
manipulation of financial results, for example the
use of journals or management estimates, such as
provisions and accruals. These have been reviewed
as part of our substantive audit work.|Our audit procedures have not
identified any instances of
management override.| **Baxter & Co. Chartered Certified Accountants** Lynwood House, Orpington, Kent, BR6 8QE **E:** schools@baxter.co.uk **| T:** 01689 877081 | **W:** www.baxter.co.uk **5** ||**Significant**
**Risk**|**Explanation of the risk**|**Audit work performed**|**Conclusion**| |---|---|---|---|---| |||Our audit may serve to act as a deterrent, but we
are not responsible for preventing fraud or
corruption.||| |**3.**|**Related**
**and**
**connected**
**parties**|We are required to consider whether disclosures in
the financial statements concerning related party
transactions are complete and comply with
Companies Act 2006.|A Companies House/Charity Commission search
was completed for each of the trustees to identify
possible related parties with which the Charity may
have transacted.
We
have
requested
written
management
representations from you confirming the full
disclosure of related party transactions.|Our audit work has provided
assurance that the related party
transactions disclosed in the
financial
statements
are
complete.| **Baxter & Co. Chartered Certified Accountants** Lynwood House, Orpington, Kent, BR6 8QE **E:** schools@baxter.co.uk **| T:** 01689 877081 | **W:** www.baxter.co.uk **6** ## **Materiality** We apply the concept of materiality both in planning and performing the audit, and in evaluating the effect of identified misstatements on the audit and the impact of uncorrected misstatements. Materiality is an expression of the relative significance of a particular matter in the context of the financial statements as a whole. An item will be considered material if its omission would reasonably influence the decisions of those using the financial statements. Auditors examine financial statements on a test basis. The level of testing we will carry out is based on our assessment of the risk that an item in the financial statements may be materially misstated. As such, it is neither practical nor appropriate to give an indication of the value of an item we would consider to be material although, clearly, we do relatively more work in areas where the risk of misstatement is considered to be high. We have assessed the materiality by considering the total income of the Charity, net of capital income together with other relevant indicators. A lower measure of materiality was set for those specific areas where the nature of the transactions requires this. Individual errors or accumulated errors, found during the course of the audit that are in excess of materiality were discussed with you and adjustments were made to the financial statements. If the adjustments had not been made, our audit report would be modified. Any adjustments found during the audit that are below the relevant materiality lever have been sent for consideration by the Trustees. We note that in addition to performing the statutory audit, we also provide the following non-audit services: - a) Preparation of statutory financial statements from the Charity’s trial balance; - b) Provision of general advice as required; - c) Preparation of corporation tax computation and CT600 return. The following safeguards are in place in respect of providing of the above non-audit services to ensure our independence: - a) Preparation of statutory financial statements from the Charity’s trial balance is carried out by a dedicated accounts production team separate from audit and is a mechanical function presenting the Charity’s results for the period in the required format. Any adjustments to the figures will be made following discussion and approval by the Charity. The process of preparation of the financial statements is reviewed by an independent manager prior to completion; - b) General advice and assistance with accounting queries during the period is not considered significant for this Charity; - c) The completion of the taxation computation and other corporation tax compliance is carried out by a separate tax department. ## **Objectivity and Independence** As agreed with you, the provision of non-audit services to you results in a potential threat to our independence. We can confirm that, as required by professional ethical standards, we have implemented appropriate safeguards to deal with this threat, in accordance with the guidance issued by our professional body. **Baxter & Co. Chartered Certified Accountants** Lynwood House, Orpington, Kent, BR6 8QE **E:** schools@baxter.co.uk **| T:** 01689 877081 | **W:** www.baxter.co.uk **7** ## **Amendments to financial statements** It is considered good practice to inform you of any material adjustments within the financial statements presented for audit that have been discovered during the audit process as well as adjustments notified to us by you. Set out below is a list of audit adjustments for which you have authorised adjustment to the financial statements, and the impact of those adjustments. ||**Effect on Fund**
**Reserves (£)**| |---|---| |Fundsper ledger|809,011| |Correction to mis-posted asset|-494| |Fixed asset addition|12,240| |Remove bad debtprovision|9,446| |Introduce bank interest|2,044| |Audit and accountspreparation accrual|-8,730| |Reverseprioryear accrual|900| |Remove duplicate interest|-849| |Introduce accrual in respect of settlement|-99,215| |**Fundsper Accounts**
~~a~~|**724,353**
~~a~~| In addition to the above, some presentation adjustments have been included in the financial statements although these have had no impact on the total of fund balances, including the allocation of income and expenditure to relevant funds Other than the listed adjustments, we have not identified any misstatements or omissions (unless clearly trivial) from the financial statements, which have not been adjusted by you. **Baxter & Co. Chartered Certified Accountants** Lynwood House, Orpington, Kent, BR6 8QE **E:** schools@baxter.co.uk **| T:** 01689 877081 | **W:** www.baxter.co.uk **8** ## **Recommendations for the current year** ## **Accounting system and Internal control** We set out below a summary of the matters identified from our audit work relating to the accounting system and internal control weaknesses. We have included our view of the priority (low, medium, or high) of each point. In arriving at our view of priority we have considered both the potential impact of the weakness identified and the likelihood of the related risk materialising. |**Description and impact**|**Recommendation**|**Management Response**|**Priority**| |---|---|---|---| |Declaration form was not held on file
for resigned School Business
Manager.
Impact: Incomplete records of annual
declarations. A risk of related party
transactions going unnoticed.|We recommend that evidence of
annual
declarations
of
business
interests are obtained and retained on
file.|The School Business Manager
requested that the Clerk maintains all
HT/DH and SBM DoI forms alongside
the governor DoI forms.|Low| |Salary letters held on file were noted
to be unsigned.
Impact: Pay not evidenced as being
independently authorised.|We recommend copies of signed
salary extension letters are retained
on file as evidence of rates of pay
being authorised at appropriate levels.|The School Business Manager will
ensure the signed copies are held on
file.|Medium| |Evidence for authorisation of
overtime hours was not held on file.
We were informed that this was likely
to have been authorised via email.
Impact: Pay not evidenced as being
independently authorised.|We recommend that authorisation
evidence is retained on the monthly
payroll file.|The School Business Manager already
implemented a system whereby staff
complete an overtime form to be
authorised. A front cover of overtime
is completed each month for all the
overtime within the month. The HT
and SBM review this together before
the overtime is recorded on the salary
calculations spreadsheet. The cover
sheet is authorised by the HT & SBM.|Medium| **Baxter & Co. Chartered Certified Accountants** Lynwood House, Orpington, Kent, BR6 8QE **E:** schools@baxter.co.uk **| T:** 01689 877081 | **W:** www.baxter.co.uk **9** |**Description and impact**|**Recommendation**|**Management Response**|**Priority**| |---|---|---|---| |Instances where invoices had not
been evidenced as authorised.
Impact: A risk that funds could be
misappropriated.|We recommend that authorisation of
invoices is appropriately evidenced.|The School Business Manager will
ensure that all invoices are evidenced
as authorised.|Medium| |Instances where payment runs had
not been evidenced as authorised.
Impact: A risk that funds could be
misappropriated.|We recommend that BACS transaction
reports are signed to evidence the
approval of payment to suppliers.|The School Business Manager has
implemented this. Checks were
evident on BACS payments tested
later in the year.|Medium| |Two transactions we tested did not
have a supporting purchase order on
file where one would be expected.
One transaction that did have a
supporting purchase order however
this was not authorised.
Impact: payments are not authorised
before expenditure is incurred.|We recommend that purchase orders
are
raised
where
possible
and
authorised prior to the expenditure
being incurred.|The School Business Manager is
implementing purchase order forms.|Low| |One expenditure transaction tested
did not have a supporting invoice on
file.
Impact: payments are not authorised.
A risk that funds could be
misappropriated.|We recommend that all invoices are
held on file and evidenced as
authorised.|The new SBM is ensuring that all
supplier authorised invoices are only
filed in the purchase ledger files.
Previously, invoices in other various
files not specific to purchase ledger
invoices.|Medium| **Baxter & Co. Chartered Certified Accountants** Lynwood House, Orpington, Kent, BR6 8QE **E:** schools@baxter.co.uk **| T:** 01689 877081 | **W:** www.baxter.co.uk **10** |**Description and impact**|**Recommendation**|**Management Response**|**Priority**| |---|---|---|---| |Instances where banking has been
made from petty cash to the current
account.
For one sample, no signatories were
recorded to approve the cash
counted and subsequently banked.
For another sample, only the School
Business Manager had signed.
For another sample, a higher amount
was banked than that had left the
petty cash account. No record of this
on the petty cash file.|We recommend that in all instances
when counting petty cash, two
signatories are recorded.|The School Business Manager
informed me that there will be one
last reconciliation of cash, this will be
counted and signed by two
individuals. Cash will then no longer
be in use.|Medium| **Baxter & Co. Chartered Certified Accountants** Lynwood House, Orpington, Kent, BR6 8QE **E:** schools@baxter.co.uk **| T:** 01689 877081 | **W:** www.baxter.co.uk **11** ## **Expected modifications to the auditor’s report** We have substantially completed our work and intend to issue an unmodified audit opinion, subject to the trustees’ approving the financial statements and any minor outstanding items being received and/or completed. Other matters to be communicated with those charged with Governance. ## **Significant difficulties encountered during the audit** We did not encounter any significant difficulties during the audit ## **Significant matters, if any arising from the audit** There are no further significant matters that we need to bring to your attention. ## **Going Concern** The Trustees need to give consideration to the level of reserves maintained and consider going concern for a period being at least 12 months from the approval of the accounts. ## **Other action points – Reminders and Submissions** - 1) A written reply should be prepared in response to this report. Please return it to us keeping a signed copy for your own records. - 2) On return to us of the signed statutory accounts and the signed letter of representation which must be on the Charity’s headed paper, we will certify the audit report(s) and send you the certified accounts for submission to the Charity Commission (the filing deadline is 30 June 2024). **Baxter & Co. Chartered Certified Accountants** Lynwood House, Orpington, Kent, BR6 8QE **E:** schools@baxter.co.uk **| T:** 01689 877081 | **W:** www.baxter.co.uk