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2023-08-31-accounts

pioooOQ ll'41 the DeaF Academy Inspiring educatio Annual report and consolidated financial statements For the period I September 2022 to 31 August 2023 Exeter Royal Academy for Deaf Education, a company limited by guarantee RÈgisterÈd officè.. The Deaf Academy, l Douglas AvÈnuÈ. Extnouth, DÈvon, EX8 2AU FUNDFNIgNG REGULATOR Company rÈgistrÈtion no. 65857031 RÈgistÈrÈd tharity no. 1124523

Exeter Royal Academy for Deaf Education

Contents

Reference and Administrative Details 1
Trustees' Report 3
Statement of Trustees' Responsibilities 12
Independent Auditor's Report on the Financial Statements 13
Consolidated Statement of Financial Activities_incorporating Income and Expenditure Account_ 17
Consolidated Balance Sheet 19
Balance Sheet 20
Consolidated Statement of Cash Flows 21
Notes to the Financial Statements 22

Exeter Royal Academy for Deaf Education

Reference and Administrative Details

Trustees (Directors)

Mr A Alexander

Dr M Collie (appointed 19 October 2023) Mr A Collyer, Honorary Treasurer Mr R Davey Mr J Dewhirst

Mr C Hampton II (resigned 6 September 2022)

Dr J Harvey, Vice Chair (resigned 31 August 2023) Mrs S Papworth (appointed 9 February 2023) Dame A Pedder OBE, Chair

Mr D Robertson, Vice Chair (1 September 2023) Mr R Spencer Ms J Stephens (appointed 4 May 2023)

Company Secretary

Mrs C Quick

Key Management Personnel

Mr S Dewing, Principal

Mrs C Quick, Director of Finance & Resources

Principal and Registered Office

The Deaf Academy 1 Douglas Avenue Exmouth EX8 2AU

Company Registration Number

06585703

1

Exeter Royal Academy for Deaf Education

Reference and Administrative Details

Independent Auditors

PKF Francis Clark Statutory Auditor Sigma House Oak View Close Edginswell Park Torquay Devon TQ2 7FF

Bankers

National Westminster Bank Plc 59 High Street Exeter Devon EX4 3DP

Charities Aid Foundation (CAF Bank) PO Box 861 Ipswich IP1 9LW

2

Exeter Royal Academy for Deaf Education

Trustees' Report for the Year Ended 31 August 2023

the charitable company for the year ended 31 August 2023. The annual report serves the purposes of both a Trustees' report, and a Directors' report under company law.

The Charity, Exeter Royal Academy for Deaf Education, operates a non-maintained, residential special school and an independent specialist college for students aged 5 to 25 years (the Deaf Academy). Students are placed at the Deaf Academy by local authorities in England, Scotland and Wales. The

Structure, governance and management

Constitution

The Charity is a company limited by guarantee and is a registered charity. The charitable company's memorandum and articles of association are the primary governing documents of the Charity. The company registration number is 06585703, and the charity number is 1124523.

Under the provision of Section 30 of the Companies Act 2006, the company is entitled to omit the word "Limited" from its name.

The Trustees of Exeter Royal Academy for Deaf Education are also the directors of the charitable company for the purposes of company law.

Details of the Trustees who served throughout the year except as noted are included in the Reference and Administrative Details on page 1.

Members' liability

The company is limited by guarantee and has no share capital. In the event of a winding up the liability of the members is limited to £1 each.

Trustees and Governing Body

The Charity has a Board of Trustees which meets at least four times a year. Governance of the Academy is delegated to a Governing Body which meets at least three times a year and Governance which meets at least three times a year. The Trustees remain responsible for the governance of the Charity as a whole.

Method of recruitment and appointment or election of Trustees

Governing Body and its various committees, sub-committees and working groups. The Trustees look at the blend of experience and skills of all Governors and Trustees to ensure that these meet the needs of the Charity. Where vacancies arise, a formal recruitment process is undertaken. This involves advertising both locally and nationally as well as more informal approaches to individuals who have the relevant skills and experience. Selection is made after a rigorous process including visits to the Charity and interviews by senior staff and Trustees and Governors. Induction is provided to all Trustees and Governors and an induction and training programme is organised by the Governance Officer. Governors and Trustees are expected to visit the School and College regularly.

The Trustees and Governors undertake skill audits and self-evaluations on a regular basis to understand and support board performance. This enables the Charity to identify training and development needs and to provide opportunities to address them in addition to providing guidance to support the recruitment and selection of new Trustees and Governors.

3

Exeter Royal Academy for Deaf Education

Trustees' Report for the Year Ended 31 August 2023

Organisational structure

During the year the Charity has operated within its articles of association and supporting governance and committee structure to ensure it continues to have an effective governance framework in place.

by the Senior Leadership Team. The changing student profile, greater stability and increased organisational maturity have resulted in the need to make changes to the organisational structure of the Charity. A review of the organisational structure has led to changes in the management structure to better meet current needs and add an element of future proofing. Members of the Senior Leadership Team appointed during the 2022/23 academic year have settled into their roles and focused on curriculum development and continuing to build capacity within the middle management team. This has resulted in some new appointments which have given great depth of knowledge and key skills to strengthen our work and prepare for future development. Details of the key management personnel are shown on page 1.

The Trustees are responsible for determining and reviewing the pay and remuneration for these staff and use benchmark information from both the education and charity sectors to do this.

Risk management

The improved approach to the assessment, reporting and management of risk at all levels of the discussion and understanding of the key risks is facilitated by this improved approach increasing visibility and the strategic management of risk. Furthermore, the budget process ensures that key risks are considered and resources are allocated in response to these risks.

The Trustees are responsible for the management of risks affecting the Charity and have undertaken a review of risks associated with its activities. The key controls used by the Charity include:

The Trustees and senior leaders have undertaken a review and analysis of risk, focusing on the major aspects of operational, financial, governance, compliance and reputational risk. The work has given rise to steps and procedures to mitigate likely risks and to ensure regular monitoring of the primary areas of potential risk.

The principal risks and uncertainties, together with a summary of how they are managed are set out below:

4

Exeter Academy

Trustees' Report for the Year Ended 31 August 2023

Leadership Team. Key oversight is provided by the Finance and Resources sub committee and regularly reported to the Governing Body and Board of Trustees. Development/Recruitment/Retention/CPD/Training/Leadership - Pay Review completed in 2022/23. Review of effectiveness of recruitment approaches (relocation package, staff referrals scheme, targeted campaigns) Wellbeing initiatives. Development of Workforce Development the Charity is a great

Through the risk management process established by the Charity, the Trustees are satisfied that the major risks identified have been adequately mitigated where necessary. It is recognised that systems can provide reasonable but not absolute assurance that major risks have been adequately managed.

Objectives and activities

Objects and aims

as follows:

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Exeter Royal Academy for Deaf Education

Trustees' Report for the Year Ended 31 August 2023

disability, would benefit from the same (principally though not exclusively from the counties of Devon, Cornwall, Somerset and Dorset) with the object of developing their personal, mental, physical and spiritual capacities so that they may realise their full potential as individuals and members of their communities and society as a whole and so that their condition of life may be improved; and

Objectives, strategies and activities

Our vision is to be an outstanding provider of Education, Support and Care for Deaf young people with additional and complex needs and a centre of excellence for Education, Care and Support for Deaf young people with additional and complex needs, including research, sharing best practice, and providing information to the wider Deaf/Special Needs (SEN) sector. We will be a champion in promoting and celebrating the diversity of the Deaf cultural and linguistic community in all its forms and tackling discrimination where it occurs.

Our mission is to nurture and grow Deaf young people with a real sense of belonging who are confident, resilient, and independent, supporting their development of robust behaviours, knowledge and skills to live happily in the wider world. This informs everything across Education, Care, Support and the whole educational needs and support them on a journey towards a strong sense of self and a clear personal identity.

We provide the following Ofsted registered services:

The Deaf Academy, Fearnside House and Rolle House are unique provisions in the UK, offering a specialist curriculum, teaching, support and residential care to Deaf young people, the majority of whom have accompanying additional or complex needs. This is a fantastic place for young people to learn, develop and be part of a diverse Deaf multilingual community. Our aim is to develop empowered, confident young people who are equipped to embark into adulthood with aspiration, skills and resilience.

We encourage our young people to explore their passions and develop a strong Deaf identity, while also supporting them to achieve educationally. We offer a truly bilingual environment, where our students learn both British Sign Language and English depending on their needs.

Public benefit

The Trustees have given and in particular to its supplementary public benefit guidance on advancing education and on fee charging.

6

Exeter Royal Academy for Deaf Education

Trustees' Report for the Year Ended 31 August 2023

School & College. Admission to the School & College is open to any student for whom the specialist education has been professionally assessed as appropriate to meet their needs. Fees are charged to allow costs to be recovered, these are usually funded by local authorities and the Education and Skills Funding Agency. Local Authorities benefit as the Charity enables them to meet their statutory responsibilities to educate children with hearing impairment. also benefit from the support given to them and from the greater wellbeing and achievement of their child.

-placements and other events in the community, raising awareness of deafness. The Charity has taken an active part in supporting and sponsoring local events, including the Exmouth Festival and the Exmouth Business Awards.

The Charity is committed to the greater integration of deaf and hearing communities and seeks to raise awareness of deafness and promote the capabilities of deaf people though publicity, partnership working, fundraising and similar activities.

Fundraising

The Deaf Academy carries out fundraising through its website which contains a link to the Deaf Academy JustGiving page. The Deaf Academy JustGiving page invites private individuals and other organisations to donate or create their own fundraising page to support the Deaf Academy. Individuals also have the opportunity to make cash donations to collecting tins at events hosted by the Deaf Academy and at events hosted by other organisations at which the Deaf Academy has a presence. The Deaf Academy does not carry out door to door, street fundraising or direct mailings and does not employ any third parties to carry out fundraising activities on its behalf. Staff and students involved in events are aware of what would constitute unreasonably persistent approaches or placing undue pressure on a person for the purpose of soliciting donations at events. The Charity does not engage third party professional fundraisers. The Deaf Academy complies, and is registered, with the Fundraising Regulator.

Equality and Diversity

organisation where diversity is celebrated and valued.

The Charity strives to create a culture where mutual cooperation, respect, dignity and trust are fostered. The Charity will not tolerate unfair or unlawful treatment on the grounds of age, disability, gender, transgender, marital status, race, colour, ethnic origin, socioeconomic background, sexual orientation, nationality, trade union membership and activity, philosophical, political or religious beliefs or unbelief, and pregnancy or maternity.

and volunteers are treated fairly and have equal access to learning programmes, facilities and employment opportunities.

7

Exeter Royal Academy for Deaf Education

Trustees' Report for the Year Ended 31 August 2023

Strategic Report

Achievements and performance

Operational performance

It continues to be a delight to see how much our students appreciate the facilities they have and the benefit this has created for them in so many ways.

The Deaf Academy and Rolle House are now fully established as part of the Exmouth community. Our purpose-built Academy designed with the help of specialists experienced in creating Deaf friendly spaces continues to be a triumph. It acts as a magnet attracting student referrals, new staff to our service and as a reference site for organisations seeking to understand the impact of the designed environment on Deaf people. Our education facilities and residential care accommodation are excellent and provide a splendid environment within which our students and staff can flourish.

Our growth in student numbers has continued to be ahead of predicted growth. The review of capacity and options for expansion was commissioned in 2021/22 and resulted in a proposal to develop a Post 19 Centre close to the Deaf Academy but offsite to enable a more differentiated offer to our young adults preparing them for more independent living. Using a combination of reserves, legacies and fundraising, a former convent building was purchased and converted to create a 10 bedroom Adult Residential and Learning Centre called Fearnside House which opened in September 2023.

Excellent progress has been made throughout 2022/23 and the commitment of our expanded staff teams has remained resolute. As with many parts of the education and care sector, recruitment has been more difficult than previous years and new and innovative approaches have been taken to recruit and retain staff. Consequently, we have successfully recruited to the additional roles created to build our capacity to meet the increasing demand for our service. Trustees are very grateful to our staff and senior leadership team who work ceaselessly to ensure our young people flourish, enjoy being children and young people and are helped to reach their full potential.

A key feature of 2022/23 was adding additional external quality assurance support to education. This included using external coaches and a School Improvement Partner. In addition, annual reviews by NATSPEC (National Association of Specialist Colleges) and Challenge Partners helped to further enhance quality assurance approaches. This combined with new appointments led to effective development of areas of improvement and curriculum across School and College. Furthermore, a key structural approach was the restructuring and redefining of curriculum in both School and College provision and timetabling and integration of therapeutic provision.

During 2022/23 the Academy had four formal Ofsted inspections. Residential Care was inspected in October 2022 and dropped a grade from Good to Requires Improvement. In February 2023, School and Sixth Form were inspected (the first full inspection since 2019) and achieved a fantastic outcome for Good overall with two areas of Outstanding practice. Although work continues, this marked a milestone for the Charity in securing our first ever Outstanding subgrades in an Ofsted report. This was an incredible achievement and a result of much hard work from the educational leadership team. In May there was a monitoring visit of post 19 provision which resulted in a very good outcome of reasonable progress in all areas. In November 2023, re-inspected and increased its grade from Good to Outstanding. Inspectors belong in the home and are nurtured and cared for to a high standard . They recognised rogress and wellThis is the first Outstanding grade achieved for .

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Exeter Royal Academy for Deaf Education

Trustees' Report for the Year Ended 31 August 2023

care for deaf young people is growing and continues to build national prominence for the quality and innovation of the education and care it offers.

Our particular thanks and appreciation go to our Senior Leadership Team, our education, care and support colleagues for the hard work, dedication and resilience they continue to demonstrate and for the pride and joy they have in the success of our young people. This year Trustees would like to say a Finance, HR, IT, catering, cleaning, and administrative support, for all the work they do behind the scenes to ensure everything is commissioned on time and works effectively. These are complex tasks when successfully implemented and are rarely noticed because they work so well, but we all know how key they are to enable the rest of our service to perform well.

The Trustees are very grateful to the many organisations and individuals who generously contributed funds which made the completion of our new Academy and Fearnside House possible and who continue to support us. We have benefited in year from a number of substantial legacies and we are particularly grateful to those individuals and families who name the Deaf Academy in their wills.

We would like to thank the community of Exmouth their continued support and encouragement they provide to our student community. Our young people are welcomed and feature in so many community events and it is uplifting to see how our pride in them, and their achievements are shared by people in our wider community. Our students are ambassadors for the charity, the Deaf Academy and for the Deaf Community, every year we see them grow in aspiration and achievement to become proud young deaf people embedded in a caring community and widening their aspirations and achievements.

Future activities

The year 2022/23 has been one of development and embedding the tremendous improvement and quality initiatives our staff and the senior leadership team have put in place to ensure our provision becomes best in class. There remains more work to do but we are building on strong foundations, reflecting, learning, and improving to ensure Deaf young people get the best possible outcomes. Any organisation must look forward to ensure it continues to identify potential opportunities and risks and to build strategy that is robust and responsive. Led by the Principal, our revised 5 year forward looking Strategic Plan was published in early 2024.

The strategic plan identifies 6 strategic priorities:

  1. Redesigning our provision to better meet the changing needs of our students

  2. Securing and maintaining high quality in all aspects of our provision

  3. Becoming a research and professional development and training hub for professionals working for Deaf children with additional and complex needs

  4. Maintaining a financial surplus, reinvesting in our staff, facilities and resources

  5. Creating significant impact regionally and locally via the promotion of our wider charity objectives (raising awareness/promotion, tackling discrimination, campaigning, research and development and bespoke professional and non-professional training)

  6. Ensuring the Charity is a great place to work

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Exeter Royal Academy for Deaf Education

Trustees' Report for the Year Ended 31 August 2023

Going concern

At the date of approval of the accounts the Charity has an adequate level of cash reserves. Fee income is strong, student numbers have increased and applications for admission to the school and college rolls are growing. The new facilities at Fearnside House enable us to plan confidently for future growth. The Trustees have reviewed the cash forecasts and commitments and are satisfied there are adequate financing arrangements in place. Taking all these factors into consideration the Trustees consider that the Charity should continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Statement of Accounting Policies.

Financial review

This is the third year, since moving to the new campus in Exmouth, that the Charity has achieved an operating surplus. Our financial performance has been helped by strong student numbers which have exceeded expectations, combined with legacy income, income from Trusts and tight cost control. The Charity has a significant annual depreciation charge, £645k in 2022/2023, due to the new purpose-built Academy and its facilities. Overall, our cash position decreased by £318k in the year due to the investment in increased capacity through the purchase of the Adult Learning and Residential Centre, Fearnside House. In May 2023, the Charity was successful in re-financing the £1.4m short term interest only loan to a 15-year capital repayment loan of £1.6m. The re-financed loan has improved terms and supports longer term financial stability for the Charity.

9k at the balance sheet date. The freely available reserves are made up of the unrestricted current assets, including investments, less unrestricted current liabilities.

mainly due to a £1.4m reduction the Local Government Pension Scheme liability as a result of a change in application of financial assumptions. Reserves have also increased as a result of the operating surplus of £246k and the gains on investments and disposal of fixed assets of £2k.

Reduction in pension liabilities

As noted above there has been a reduction in the Local Government Pension Scheme liability which has increased the total reserves of the Charity. The liability is calculated annually by the actuary using a discount rate based on bond yields, as required by Accounting Standard FRS102. Bond yields increased at 31 August 2023 compared to the previous year and this caused a corresponding reduction in the calculated pension liability.

It is not possible to predict what might happen to yields used for future valuations but if they return to levels seen in previous years, we may well see another swing in results but in the opposite direction. However, it is important to note that this change in pension liability is not a basis for calculating the funding requirements of the scheme. Funding requirements are based on the triennial valuations prepared by the scheme actuary who set the contribution levels for current service and to recover any deficit on past service costs.

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Exeter Royal Academy for Deaf Education

Trustees' Report for the Year Ended 31 August 2023

Reserves policy

reserves in line with the guidance issued by the Charity Commission. The target level of reserves is set after considering the key risks facing the Charity and the regular financial forecasts prepared by management. The level is reviewed annually by Trustees. We aim to maintain sufficient reserves to enable us to carry on our work when faced with difficult circumstances and to adjust our strategy in response, while ensuring we maximise the resources readily available for charitable purposes. Our primary operating funding comes from local authorities and is reasonably foreseeable in the short term. This, together with the significant value of our freehold premises and expectation that we will continue as a going concern, is such that we do not provide reserves for cessation or the impact of our share of the deficits of the defined benefit pension scheme.

The target level of reserves is between £500k to £750k. The freely available reserves at the balance sheet date of 31 August 2023 was £389k. The freely available reserves at the year end was lower than the minimum target level due to the Charity utilising more reserves than planned to complete the works required for Fearnside House and the pressure caused by the short timescale for the fundraising campaign.

Investment policy

The objective of the investment policy is to maximise the total return of the funds whilst avoiding undue risk. No additional funds have been placed into investments during the period. The investment policy and investments held by the Charity will continue to be reviewed annually.

Investment performance

The investments are held within Common Investment Funds and are divided between Fixed Interest and Equity shares. The market value of investments at the balance sheet date was £57k. These funds have produced an income of £2.8k for the reporting period.

The Trustees' Report, incorporating a Strategic Report, was approved by order of the Board of Trustees on and was signed on its behalf by:

Dame A Pedder OBE

Chair

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Exeter Royal Academy for Deaf Education

Statement of Trustees' Responsibilities

The Trustees (who are the directors of the charitable company for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and the applicable law and regulations.

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

select suitable accounting policies and apply them consistently;

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

In so far as the trustees are aware:

there is no relevant audit information of which the group's auditors are unaware, and

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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Exeter Royal Academy for Deaf Education

Independent Auditor's Report on the Financial Statements to the Members of Exeter Royal Academy for Deaf Education

Opinion

We have audited the financial statements of Exeter Royal Academy f ) and its subsidiaries (the 'Group') for the year ended 31 August 2023, which comprise the Consolidated Statement of Financial Activities incorporating Income and Expenditure Account, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Cash Flows and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards including FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The Trustees are responsible for the other information. The other information comprises the information opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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Exeter Royal Academy for Deaf Education

Independent Auditor's Report on the Financial Statements to the Members of Exeter Royal Academy for Deaf Education (continued)

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the Group and the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Trustees' Report.

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:

Responsibilities of Trustees

As explained more fully in the Statement of Trustees' Responsibilities set out on page 12, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Group's and the Charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the Charity or to cease operations, or have no realistic alternative but to do so.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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Exeter Royal Academy for Deaf Education

Independent Auditor's Report on the Financial Statements to the Members of Exeter Royal Academy for Deaf Education (continued)

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

As part of our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to the group and the industry/ sector in which it operates to identify the key laws and regulations affecting the entity. As part of this assessment process we held discussions with management.

We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, primarily FRS 102 (effective 1 January 2019) - (Charities SORP), the Companies Act 2006 and the Charities Act 2011.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the or to avoid a material penalty.

We discussed with management how the compliance with these laws and regulations in monitored and discussed policies and procedures in place.

We also identified the individuals who have responsibility for ensuring that the group complies with laws and regulations and deals with reporting any issues if they arise.

As part of our planning procedures, we assessed the risk of any non-compliance with laws and accounts.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures included the following:

As part of our enquiries we discussed with management whether there have been any known instances, allegations or suspicions of fraud and were told there were none.

We also evaluated the risk of fraud through management override including that arising from (including the risk of override of controls) and we determined that the principal risks were related to fraudulent financial reporting, in particular to fraud in revenue recognition and grant funding received.

In response to the identified risk, as part of our audit work we:

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Exeter Royal Academy for Deaf Education

Independent Auditor's Report on the Financial Statements to the Members of Exeter Royal Academy for Deaf Education (continued)

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the Charity's Members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charity's purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and its Members as a body, for our audit work, for this report, or for the opinions we have formed.

Martin Hobbs BSc ACA (Senior Statutory Auditor) PKF Francis Clark, Statutory Auditor

Sigma House Oak View Close Edginswell Park Torquay Devon TQ2 7FF

Date:

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Exeter Royal Academy for Deaf Education

Consolidated Statement of Financial Activities for the Year Ended 31 August 2023 (including Income and Expenditure Account)

Note
Income from:
Donations and grants
2
Charitable activities:
School fees
Professional fees
Other trading activities
3
Investments
4
Other income
5
Total
Expenditure on:
Charitable activities:
Academy
operations
Total
6
Net income
Other recognised gains and losses
Losses on investment assets
11
Gains on disposal of tangible fixed assets
Actuarial gains on defined benefit pension
schemes
23
Net movement in funds
Reconciliation of funds
Total Funds brought forward at 1 September
2022
Total Funds carried forward at 31 August
2023		 Unrestricted
Funds
£
Restricted
Funds
£
Total
2023
£
254,085
133,295
387,380
5,533,411
-
5,533,411
443,446
-
443,446
42,071
-
42,071
27,227
-
27,227
69,804
-
69,804
6,370,044
133,295
6,503,339
6,221,523
35,610
6,257,133
6,221,523
35,610
6,257,133
148,521
97,685
246,206
(5,317)
-
(5,317)
7,079
-
7,079
1,401,000
-
1,401,000
1,551,283
97,685
1,648,968
15,109,303
70,210
15,179,513
16,660,586
167,895
16,828,481

17

Exeter Royal Academy for Deaf Education

Consolidated Statement of Financial Activities for the Year Ended 31 August 2022 (including Income and Expenditure Account)

Note
Income from:
Donations and grants
2
Charitable activities:
School fees
Professional fees
Other trading activities
3
Investments
4
Other income
5
Total
Expenditure on:
Charitable activities:
Academy
operations
Raising Funds:
New Build Fundraising Campaign
Total
6
Net income/(expenditure)
Other recognised gains and losses
Gains/(losses) on investment assets
11
Gain on disposal of tangible fixed assets
Actuarial gains/ (losses) on defined benefit
pension schemes
23
Net movement in funds/(deficit)
Reconciliation of funds
Total Funds brought forward at 1 September
2021
Total Funds carried forward at 31 August
2022		 Unrestricted
Funds
£
Restricted
Funds
£
Total
2022
£
395,148
19,062
414,210
4,645,451
-
4,645,451
683,674
-
683,674
38,342
-
38,342
5,211
-
5,211
38,878
-
38,878
5,806,704
19,062
5,825,766
5,414,803
35,585
5,450,388
-
6,090
6,090
5,414,803
41,675
5,456,478
391,901
(22,613)
369,288
2,140
-
2,140
44,251
-
44,251
8,654,000
-
8,654,000
9,092,292
(22,613)
9,069,679
6,017,011
92,823
6,109,834
15,109,303
70,210
15,179,513

18

Exeter Royal Academy for Deaf Education

(Registration number: 06585703) Consolidated Balance Sheet as at 31 August 2023

Note
Fixed assets
Tangible assets
10
Investments
11
Current assets
Debtors
12
Cash at bank and in hand
Creditors: Amounts falling due within one year
13
Net current assets
Total assets less current liabilities
Creditors: Amounts falling due after more than one year
14
Net assets excluding pension liability
Pension scheme liability
23
Net assets including pension liability
Funds:
Restricted funds
15
Unrestricted funds
Revaluation fund
Capital fund
Pension deficit fund
Freely available reserves
15
Total funds		 2023
£
2022
£
18,448,102
17,090,654
57,507
64,094
18,505,609
17,154,748
112,527
452,198
1,442,543
1,760,072
1,555,070
2,212,270
(1,202,130)
(912,205)
352,940
1,300,065
18,858,549
18,454,813
(2,030,068)
(1,908,300)
16,828,481
16,546,513
-
(1,367,000)
16,828,481
15,179,513
167,895
70,210
87,326
93,026
16,183,804
15,032,118
-
(1,367,000)
389,456
1,351,159
16,660,586
15,109,303
16,828,481
15,179,513

The financial statements on pages 17 to 46 were approved by the Trustees, and authorised for issue on and signed on their behalf by:

Mr T Collyer Trustee

19

Exeter Royal Academy for Deaf Education

(Registration number: 06585703) Charity Balance Sheet as at 31 August 2023

Note
Fixed assets
Tangible assets
10
Investments
11
Current assets
Debtors
12
Cash at bank and in hand
Creditors: Amounts falling due within one year
13
Net current assets
Total assets less current liabilities
Creditors: Amounts falling due after more than one year
14
Net assets excluding pension liability
Pension scheme liability
23
Net assets including pension liability
Funds:
Restricted funds
Unrestricted funds
Revaluation fund
Capital fund
Pension deficit fund
Freely available reserves
Total funds		 2023
£
2022
£
18,719,477
17,362,029
57,507
64,094
18,776,984
17,426,123
113,534
453,203
1,442,543
1,760,072
1,556,077
2,213,275
(1,202,130)
(912,205)
353,947
1,301,070
19,130,931
18,727,193
(2,030,068)
(1,908,300)
17,100,863
16,818,893
-
(1,367,000)
17,100,863
15,451,893
167,895
70,210
87,326
93,026
16,456,186
15,303,491
-
(1,367,000)
389,456
1,352,166
16,932,968
15,381,683
17,100,863
15,451,893

The financial statements were approved by the Trustees, and authorised for issue on and signed on their behalf by:

Mr T Collyer Trustee

20

Exeter Royal Academy for Deaf Education

Consolidated Statement of Cash Flows for the Year Ended 31 August 2023

Note
Net cash flows from operating activities
18
Net cash flows from investing activities
19
Net cash flows from financing activities
20
(Decrease)/increase in cash in the year
21		 2023
£
2022
£
1,465,054
1,082,434
(1,966,745)
(104,014)
184,162
(4,291)
(317,529)
974,129

21

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2023

1 Accounting policies

Statement of accounting policies

A summary of the principal accounting policies adopted (which have been applied consistently, except where noted), judgements and key sources of estimation uncertainty, is set out below.

Basis of preparation

The financial statements have been prepared under the historical cost convention with items being recognised at cost or transaction value unless otherwise stated in the notes to these accounts.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019) (Charities SORP (FRS 102)), and with the requirements of the Companies Act 2006.

The Charity constitutes a public benefit entity as defined by FRS102.

The Charity is incorporated in England and Wales. The address of its registered office is given on page 1.

a going concern.

The functional and presentational currency is sterling.

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Charity and its sole subsidiary undertaking. These are adjusted, where appropriate, to conform to group accounting policies. As a consolidated group statement of financial activities is published, a separate statement of financial activities for the parent company is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006.

During the year, an application was granted to strike off the subsidiary as of 31 January 2023. The dissolution date of the company occurred on 07 February 2023.

Income

All incoming resources are recognised when the Charity has entitlement to the funds, receipt is probable and the amount can be measured with sufficient reliability.

Grants

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

Donations

Donations and legacies are recognised on a receivable basis where there is probability of receipt and the amount can be reliably measured.

22

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2023 (continued)

1 Accounting policies (continued)

Other income

Fees receivable and charges for services are accounted for in the period in which the service is provided.

Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges

All resources expended are inclusive of irrecoverable VAT.

Expenditure on raising funds

These are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

Charitable activities

These are costs incurred on the Charity's educational operations.

Tangible fixed assets

Assets costing £1,000 or more are capitalised as tangible fixed assets and are carried at cost, net of depreciation and any provision for impairment. Where tangible fixed assets have been acquired with the aid of specific grants, either from the government or from the private sector, they are included in the Balance Sheet at cost and depreciated over their expected useful economic life.

Depreciation is provided on all tangible fixed assets other than freehold land and assets under the course of construction, at rates calculated to write off the cost of each asset over its expected useful lives, per the table below.

All fixed assets are initially recorded at cost, except for freehold and leasehold properties acquired before 31 August 2015. Up to and including 31 August 2015 it was the Trustees' policy to revalue freehold properties at depreciated replacement cost in the accounts due to the specialised nature of the asset as a result of the services provided by the Charity. The Trustees adopted the transitional provisions of FRS 102, which provide that companies do not have to revalue tangible fixed assets. Previous valuations have been retained as deemed cost and have not been updated.

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of Financial Activities.

23

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2023 (continued)

1 Accounting policies (continued)

Asset class Depreciation method and rate Freehold buildings 50 years straight line Plant and equipment 20% straight line Motor vehicles 20% straight line

Liabilities

Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions

Provisions are recognised when the Charity has an obligation at the reporting date as a result of a past event which it is probable will result in the transfer of economic benefits and the obligation can be estimated reliably.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.

Leased assets

The costs of operating leases are charged to the Statement of Financial Activities on a straight line basis over the lease term.

Investments

Fixed asset investments are included at market value at the balance sheet date.

Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the statement of financial activities in the year of disposal. Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the statement of financial activities based on the market value at the year end.

Stock

Stock and work in progress is valued at the lower of cost or net realisable value.

Financial Instruments

The Charity only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the Charity and their measurement basis are as follows:

Financial assets - trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments. Amounts due to the C wholly owned subsidiary are held at face value less any impairment.

Cash at bank - is classified as a basic financial instrument and is measured at face value.

24

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2023 (continued)

1 Accounting policies (continued)

Financial liabilities - trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition. Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument. Amounts due to C Bank loans are initially measured at transaction price, including transaction costs, are subsequently carried at amortised costs using the effective interest method except to the extent that finance costs are immaterial.

Taxation

The Charity is exempt from taxation to the extent that its income and gains are applied exclusively for charitable purposes.

Pension benefits

assets are held separately from those of the Charity. The TPS is an unfunded scheme and contributions such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quadrennial valuations using a prospective unit credit method. As stated in the notes to the financial statements, the TPS is an unfunded multi-employer scheme with no underlying assets to assign between employers. The TPS is therefore treated as a defined contribution scheme for accounting purposes and the contributions recognised in the period to which they relate.

The LGPS is a funded scheme and the assets are held separately from those of the Charity in separate trustee administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit credit method and discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent term and currency to the liabilities. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The amounts charged to operating surplus are the current service costs and the costs of scheme introductions, benefit charges, settlements and curtailments. They are included as part of staff costs as incurred. Net interest on the net defined benefit liability/asset is also recognised in the statement of financial activities and comprises the interest cost on the defined benefit obligation and interest income on the scheme assets, calculated by multiplying fair value of the scheme assets at the beginning of the period by the rate used to discount the benefit obligations. The difference between the interest income on the scheme assets and the actual return on the scheme assets is recognised in other recognised gains and losses.

The Charity also operates a defined contribution pension scheme for certain employees. The assets of the scheme are held separately from those of the Charity and are independently administered. The amount charged to the SOFA represents the contributions payable to the scheme in respect of the year.

Fund accounting

Unrestricted income funds represent those resources which may be used towards meeting any of the charitable objects of the Charity at the discretion of the Trustees. The Capital Fund represents the net book value of the unrestricted Fixed Assets less the loans due over more than one year.

The Charity has several restricted funds. Details of the nature of these funds are given in note 15.

25

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2023 (continued)

1 Accounting policies (continued)

Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions

The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

The present value of the Local Government Pension Scheme defined benefit liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate. Any changes in these assumptions, which are disclosed in note 23, will impact the carrying amount of the pension liability. Furthermore a roll forward approach which projects results from the latest full actuarial valuation performed at 31 March 2019 has been used by the actuary in valuing the pensions liability at 31 August 2023. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of the pension liability.

Subsidiary undertaking

The financial statements include the results of Exeter Deaf Academy Trading Limited, a wholly owned subsidiary. Further details of the subsidiary and its results are set out in note 11.

2 Donations and grants

Grants
Donations and sponsorship
Legacies		 Unrestricted
funds
£
Restricted
funds
£
Total
2023
£
Total
2022
£
108,652
19,834
128,486
112,022
7,459
113,461
120,920
17,188
137,974
-
137,974
285,000
254,085
133,295
387,380
414,210

3 Other trading activities

Hire of facilities
Other income		 Unrestricted
funds
£
Restricted
funds
£
Total
2023
£
Total
2022
£
10,043
-
10,043
-
32,028
-
32,028
38,342
42,071
-
42,071
38,342

26

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2023 (continued)

4 Investment income

Unrestricted Total Total
funds 2023 2022
£ £ £
Bank interest receivable 18,120 18,120 2,503
Other investment income 9,107 9,107 2,708
27,227 27,227 5,211
5 Other income
Unrestricted Total Total
funds 2023 2022
£ £ £
Pupil Premium Income 8,681 8,681 8,524
Other Educational Fees 61,123 61,123 30,354
69,804 69,804 38,878
6 Expenditure
Total Total
Staff costs Premises Other costs 2023 2022
£ £ £ £ £
Charitable activities:
Academy
operations		 &
Direct costs 3,134,362 - 259,223 3,393,585 2,905,206
Allocated support
costs 935,679 1,074,988 852,881 2,863,548 2,545,182
4,070,041 1,074,988 1,112,104 6,257,133 5,450,388

27

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2023 continued)

6 Expenditure (continued)

Total Total
Staff costs Premises Other costs 2023 2022
£ £ £ £ £
Raising funds:
New build
fundraising
campaign - - - - 6,090
4,070,041 1,074,988 1,112,104 6,257,133 5,456,478
Net income/outgoing resources for the year includes:
2023 2022
£ £
Fees payable to auditor - audit services 13,423 16,857
Fees payable to auditor - other audit services 3,477 3,765
Operating leases 44,929 69,518

28

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2023 (continued)

7 Charitable activities

Direct costs
Support costs
Analysis of educational operations
support costs
Support staff costs
Depreciation
Premises costs
Other support costs
Total support costs		 Total
2023
£
Total
2022
£
3,393,585
2,905,206
2,863,548
2,545,182
6,257,133
5,450,388
Total
2023
£
Total
2022
£
935,679
862,655
644,873
621,243
430,115
325,620
852,881
735,664
2,863,548
2,545,182

8 Staff

Staff costs during the year were:
Wages and salaries
Social security costs
Pension costs		 2023
£
2022
£
3,392,970
2,822,547
276,601
242,359
400,471
480,845
4,070,042
3,545,751

29

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2023 (continued)

8 Staff (continued)

The average number of persons (including senior management team) employed by the Charity during the year expressed as average headcount was as follows:

Charitable Activities
Teachers & Education Support
Care
Support, Estates, Fundraising & Marketing		 2023
No
2022
No
66
61
30
30
31
31
127
122

Higher paid staff

The number of employees whose emoluments (excluding employer pension costs) exceeded £60,000 was:

was:
2023 2022
No No
£60,001 - £70,000 1 1
£80,001 - £90,000 1 1

The key management personnel of the Charity are as listed on page 1. The total amount of employee benefits (including employer pension contributions and employer national insurance contributions) received by key management personnel for their services to the Charity was £194,739 (2022- £175,224)

9 Trustees' remuneration and expenses

The Trustees have not received any remuneration from the charity during the year.

As permitted by the Memorandum and Articles of Association, during the year ended 31 August 2023 travel and subsistence expenses totalling £929 (2022 - £472) were reimbursed or paid directly to one trustee (2022 - one).

30

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2023 (continued)

10 Tangible fixed assets

Group

Current year
Cost
At 1 September 2022
Additions
Disposals
At 31 August 2023
Depreciation
At 1 September 2022
Charge for the year
Eliminated on
disposals
At 31 August 2023
Net book value
At 31 August 2023
At 31 August 2022		 Freehold land
and buildings
£
Plant and
equipment
£
Motor vehicles
£
Total
£
16,620,818
2,013,233
134,638
18,768,689
1,815,246
218,022
19,439
2,052,707
(50,000)
(3,698)
-
(53,698)
18,386,064
2,227,557
154,077
20,767,698
571,517
1,021,565
84,953
1,678,035
284,077 339,267
21,529
644,873
-
(3,312)
-
(3,312)
855,594
1,357,520
106,482
2,319,596
17,530,470
870,037
47,595
18,448,102
16,049,301
991,668
49,685
17,090,654

31

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2023 (continued)

10 Tangible fixed assets (continued)

Group (continued)

Previous year
Cost
At 1 September
2021
Additions
Disposals
At 31 August 2022
Depreciation
At 1 September
2021
Charge for the year
Eliminated on
disposals
At 31 August 2022
Net book value
At 31 August 2022
At 31 August 2021		 Freehold land
and buildings
£
Plant and
equipment
£
Motor vehicles
£
Total
£
16,616,216
1,902,953
112,158
18,631,327
5,492
111,355
38,225
155,072
(890)
(1,075)
(15,745)
(17,710)
16,620,818
2,013,233
134,638
18,768,689
287,440
696,319
83,056
1,066,815
284,077
325,615
17,642
627,334
-
(369)
(15,745)
(16,114)
571,517
1,021,565
84,953
1,678,035
16,049,301
991,668
49,685
17,090,654
16,328,776
1,206,634
29,102
17,564,512

32

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2023 (continued)

10 Tangible fixed assets (continued)

Charity

Current year
Cost
At 1 September
2022
Additions
Disposals
At 31 August 2023
Depreciation
At 1 September
2022
Charge for the year
Eliminated on
disposals
At 31 August 2023
Net book value
At 31 August 2023
At 31 August 2022		 Freehold land
and buildings
£
Plant and
equipment
£
Motor vehicles
£
Total
£
16,892,192
2,013,233
134,638
19,040,063
1,815,246
218,022
19,439
2,052,707
(50,000)
(3,698)
-
(53,698)
18,657,438
2,227,557
154,077 21,039,072
571,517
1,021,564
84,953
1,678,034
284,077 339,267
21,529
644,873
-
(3,312)
-
(3,312)
855,594
1,357,519
106,482
2,319,595
17,801,844
870,038
47,595
18,719,477
16,320,675
991,669
49,685
17,362,029

33

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2023 (continued)

10 Tangible fixed assets (continued)

Charity (continued)

Previous year
Cost
At 1 September
2021
Additions
Disposals
At 31 August 2022
Depreciation
At 1 September
2021
Charge for the year
Eliminated on
disposals
At 31 August 2022
Net book value
At 31 August 2022
At 31 August 2021		 Freehold land
and buildings
£
Plant and
equipment
£
Motor vehicles
£
Total
£
16,616,216
1,902,953
112,158
18,631,327
276,866
111,355
38,225
426,446
(890)
(1,075)
(15,745)
(17,710)
16,892,192
2,013,233
134,638
19,040,063
287,440
696,316
83,056
1,066,812
284,077
325,615
17,642
627,334
-
(367)
(15,745)
(16,112)
571,517
1,021,564
84,953
1,678,034
16,320,675
991,669
49,685
17,362,029
16,328,776
1,206,634
29,102
17,564,512

34

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2023 (continued)

11 Investments

Charity

In the previous year, the Charity owned 100% of the Ordinary shares of Exeter Deaf Academy Trading Limited, a company incorporated in England and Wales (company number: 08172970, registered office: The Deaf Academy, 1 Douglas Avenue, Exmouth, EX8 2AU). The principal activity of the company was the development of a new site for Exeter Royal Academy for Deaf Education.

Turnover for the year ended 31 August 2023 was £nil (2022 - £274,154), expenditure was £nil (2022 - £4,113) and the profit for the year was £nil (2022 £270,041). The assets of the company at 31 August 2023 were £nil (2022 - £Nil), liabilities were £nil (2022 - £998) and capital and reserves were £nil (2022 a deficit of £998).

During the year, an application was granted to strike the company off as of 31 January 2023. The dissolution of the company occurred on 7 February 2023.

Group and Charity

Quoted Investments

Market value brought forward
Disposals
Revaluation
Market value carried forward
Historical cost		 2023
£
64,094
(1,419)
(5,168)
57,507
33,402		 2022
£
61,954
-
2,140
64,094
34,912

12 Debtors: amounts due within one year

Trade debtors
Prepayments
Amounts due from subsidiary
undertaking
Other debtors		 Group
Charity
2023
£
2022
£
2023
£
2022
£
2,165
28,974
2,165
28,974
49,101
33,437
49,101
33,437
-
-
-
-
61,261
389,787
62,268
390,792
112,527
452,198
113,534
453,203

35

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2023 (continued)

13 Creditors: amounts falling due within one year

Group Charity
2023 2022 2023 2022
£ £ £ £
Finance lease liabilities 8,300 4,290 8,300 4,290
Trade creditors 807,425 708,065 807,425 708,065
Other taxation and social security 66,710 59,461 66,710 59,461
Bank loans 58,384 - 58,384 -
Other creditors 44,952 29,121 44,952 29,116
Accruals and deferred income 216,359 111,268 216,359 111,268
1,202,130 912,205 1,202,130 912,200
The movement in deferred income for the year is as follows:
Group Charity
2023 2022 2023 2022
£ £ £ £
At 1 September 2022 55,130 49,559 55,130 49,559
Amount deferred in the year 72,576 55,130 72,576 55,130
Amount released from previous
years (55,130) (49,559) (55,130) (49,559)
At 31 August 2023 72,576 55,130 72,576 55,130

14 Creditors: amounts falling due after more than one year

Finance lease liabilities
Bank loans
Other loans		 Group
Charity
2023
£
2022
£
2023
£
2022
£
-
8,300
-
8,300
1,530,068
-
1,530,068
-
500,000
1,900,000
500,000
1,900,000
2,030,068
1,908,300
2,030,068
1,908,300

Bank loans of £1,588,452 (due less than and over one year) are property and due for repayment in 15 years from the first repayment date, beginning in May 2023. Other loans totalling £500,000 are unsecured and due for repayment in instalments from 2025 to 2029.

36

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2023 (continued)

15 Funds

Group

Current year:
Restricted funds
WK Hutchings Family Support
Andrew Kensit Cup
Audio Visual Equipment
ICT Suite
Residential Flats
School Classroom
Dorothy Hird Trust
Margaret Ann Robinson Award
Adult Residential Learning
Centre
Other restricted funds
Total restricted funds
Unrestricted funds
Revaluation fund
Other unrestricted funds
Total unrestricted funds
Total funds		 Balance at 1
September
2022
£
Income
£
Expenditure
£
Gains,
losses and
transfers
£
Balance at
31 August
2023
£
-
6,000
(6,000)
-
-
13,000
-
(500)
-
12,500
11,829
-
(3,654)
-
8,175
21,840
-
(6,745)
-
15,095
13,500
-
(4,500)
-
9,000
9,246
-
(3,082)
-
6,164
-
5,000
(1,000)
-
4,000
-
10,000
(500)
-
9,500
-
103,461
-
-
103,461
795
8,834
(9,629)
-
-
70,210
133,295
(35,610)
-
167,895
93,026
-
-
(5,700)
87,326
15,016,277
6,370,044
(6,221,523)
1,408,462
16,573,260
15,109,303
6,370,044
(6,221,523)
1,402,762
16,660,586
15,179,513
6,503,339
(6,257,133)
1,402,762
16,828,481

The restricted funds are set up for the following purposes:

WK Hutchings Family Support - To enable sign language and support to be delivered to families and to support keeping in touch with students, supporting our Online Academy and transitional support for student leavers.

Andrew Kensit Cup - In memory of student Andrew Kensit, each year a student will be awarded the Cup and a bursary.

Dorothy Hird Trust . Adult Residential & Learning Centre To enable a visionary new residential provision as an extension to the main campus, giving our young adult students the support they need to prepare them for independent living and work.

Margaret Ann Robinson Award In memory of Margaret Ann Robinson, each year a student who has helped others or the local community will receive an award from the fund.

Other restricted funds - various smaller projects mainly in connection with video technology, ICT, Sensory Pod, Sports & PE and Literacy

37

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2023 (continued)

15 Funds (continued)

Balance at 1 Gains, Balance at
September losses and 31 August
2021 Income Expenditure transfers 2022
Previous year: £ £
£		 £ £
Restricted funds
WK Hutchings Family Support - 6,000 (6,000) - -
Andrew Kensit Cup 13,500 - (500) - 13,000
Audio Visual Equipment 11,145 5,545 (4,861) - 11,829
ICT Suite 29,120 - (7,280) - 21,840
Residential Flats 18,000 - (4,500) - 13,500
School Classroom 12,328 - (3,082) - 9,246
Other restricted funds 2,640 7,517 (9,362) - 795
86,733 19,062 (35,585) - 70,210
New Build Fundraising
Campaign 6,090 - (6,090) - -
Total restricted funds 92,823 19,062 (41,675) - 70,210
Unrestricted funds
Revaluation fund 91,508 - - 1,518 93,026
Other unrestricted funds 5,925,503 5,850,955 (5,414,803) 8,654,622 15,016,277
Total unrestricted funds 6,017,011 5,850,955 (5,414,803) 8,656,140 15,109,303
Total funds 6,109,834 5,870,017 (5,456,478) 8,656,140 15,179,513

The restricted funds are set up for the following purposes:

New Build Fundraising Campaign To support the costs of establishing the new Deaf Academy campus.

WK Hutchings Family Support - To enable sign language and support to be delivered to families over a series of weekends.

Andrew Kensit Cup - In memory of student Andrew Kensit, each year a student will be awarded the Andrew Kensit Cup and a bursary.

Other restricted funds - various smaller projects mainly in connection with video technology, ICT, Sensory Pod, Sports & PE and Literacy

38

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2023 (continued)

16 Analysis of net assets between funds group

Fund balances at 31 August 2023 are represented by:

Tangible fixed assets
Investments
Current assets
Current liabilities
Creditors over 1 year
Pension scheme liability
Total net assets
Fund balances at 31 August 2022 are represented
Tangible fixed assets
Investments
Current assets
Current liabilities
Creditors over 1 year
Pension scheme liability
Total net assets		 Unrestricted
funds
£
Restricted
funds
£
Total funds
£
18,302,205
145,897
18,448,102
57,507
-
57,507
1,533,072
21,998
1,555,070
(1,202,130)
-
(1,202,130)
(2,030,068)
-
(2,030,068)
-
-
-
16,660,586
167,895
16,828,481
by:
Unrestricted
funds
£
Restricted
funds
£
Total funds
£
17,033,444
57,210
17,090,654
64,094
-
64,094
2,199,270
13,000
2,212,270
(912,205)
-
(912,205)
(1,908,300)
-
(1,908,300)
(1,367,000)
-
(1,367,000)
15,109,303
70,210
15,179,513

Freely Available Reserves (Group)

The freely available reserves for the Group represent unrestricted net current assets and investments. The freely available reserves at 31 August 2023 were £389,456 (£1,351,159 at 31 August 2022).

39

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2023 (continued)

17 Commitments under operating leases group and Charity

Operating leases

At 31 August 2023 the group and Charity had total future commitments under non-cancellable operating leases as follows:

Operating leases which expire:

Operating leases which expire:
Other
Within one year
Within two to five years
After more than five years		 2023
£
2022
£
69,837
70,408
205,403
198,220
591,265
631,965
866,505
900,593

40

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2023 (continued)

18 Reconciliation of net income/(expenditure) to net cash flows from operating activities

Net income
Depreciation
Investment income
Pension scheme charges in excess of cash paid
Decrease/(increase) in debtors
Increase in creditors
Net cash flows from operating activities
19 Cash flows from investing activities
Purchase of tangible fixed assets
Proceeds from the sale of tangible fixed assets
Proceeds from the sale of investments
Investment income
Net cash flows from investing activities		 2023
£
2022
£
246,206
369,288
644,873
627,334
(27,227)
(5,211)
34,000
269,000
339,671
(226,698)
227,531
48,721
1,465,054
1,082,434
2023
£
2022
£
(2,052,707)
(155,072)
57,465
45,847
1,270
-
27,227
5,211
(1,966,745)
(104,014)

20 Cash flows from financing activities

Proceeds from borrowings
Repayment of borrowings
Repayment of finance lease liabilities
Net cash flows from financing activities		 2023
£
2022
£
1,600,000
-
(1,411,548)
-
(4,290)
(4,291)
184,162
(4,291)

21 Analysis of changes in net debt

Cash at bank and in hand
Loans falling due within one year
Loans falling due after more than one year
Finance lease liabilities		 At
1 September
2022
£
Cash flows
£
Non-cash
changes
£
At
31 August
2023
£
1,760,072
(317,529)
-
1,442,543
-
-
(58,384)
(58,384)
(1,900,000)
(188,452)
58,384
(2,030,068)
(12,590)
4,290
-
(8,300)
(1,912,590)
(184,162)
-
(2,096,752)
(152,518)
(501,691)
-
(654,209)

41

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2023 (continued)

22 Members' liability

The company is limited by guarantee and has no share capital. In the event of a winding up the liability of the members is limited to £1 each.

23 Pension and similar obligations

The England and Wales (TPS) for academic and related staff, the Local Government Pension Scheme (LGPS) for non-teaching staff, and Aegon. Both the TPS and the LGPS are multi-employer defined benefit schemes; Aegon is a defined contribution pension scheme.

The latest actuarial valuation of the TPS related to the period ended 31 March 2016 and of the LGPS 31 March 2019.

Contributions amounting to £46,290 were payable to the schemes at 31 August 2023 (2022: £35,394) and are included within creditors.

Teachers' Pension Scheme

Introduction

The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed -time teachers in academies. All teachers have the option to opt-out of the TPS following enrolment.

The TPS is an unfunded scheme to which both the member and employer makes contributions, as a percentage of salary these contributions are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

Valuation of the Teachers' Pension Scheme

The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors.

The 31 March 2016 TPS actuarial valuation results were implemented from 1 September 2019. The key elements of the valuation and subsequent consultation were:

42

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2023 (continued)

23 Pension and similar obligations (continued)

The latest actuarial TPS valuation results, as at 31 March 2020, were released in October 2023. The revised employer contribution rate, arising from this valuation, is due to be implemented from 1 April 2024.

to £134,859 (2022 - £103,150).

Under the definitions set out in FRS 102, the TPS is an unfunded multi-employer pension scheme. The Charity has accounted for its contributions to the scheme as if it were a defined contribution scheme. The Charity has set out above the information available on the scheme.

Local government pension scheme

The LGPS is a funded defined-benefit scheme, with the assets held in separate trustee-administered funds. The total contribution made for the year ended 31 August 2023 was £144,000 (2022 - £165,000), of which employer's contributions totalled £120,000 (2022 - £125,000) and employees' contributions totalled £24,000 (2022 - £27,000). The agreed contribution rates for future years are 22.3% for employers plus an additional top up for the past service deficit of £43,000 per annum and 5.5% to 12.5% for employees.

Principal actuarial assumptions

Principal actuarial assumptions
At 31
At 31 August August
2023 2022
% %
Rate of increase in salaries 3.90 3.95
Rate of increase for pensions in payment/inflation 2.90 2.95
Discount rate for scheme liabilities 5.30 4.25

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

At 31
At 31 August August
2023 2022
Retiring today
Males retiring today 21.4 21.7
Females retiring today 22.6 22.9
Retiring in 20 years
Males retiring in 20 years 22.7 23.0
Females retiring in 20 years 24.0 24.3

43

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2023 (continued)

23 Pension and similar obligations (continued)

Sensitivity analysis on present value of scheme obligations

Discount rate +0.1%
Discount rate -0.1%
Mortality assumption
1 year increase
Mortality assumption
1 year decrease
CPI rate +0.1%
CPI rate -0.1%		 At 31 August
2023
£
At 31 August
2022
£
9,229,000
10,693,000
9,551,000
11,201,000
9,687,000
11,303,000
9,099,000
10,597,000
9,544,000
11,181,000
9,236,000
10,713,000

The actual return on scheme assets was positive £263,000 (2022 negative £355,000).

Amounts recognised in the statement of financial activities

Amounts recognised in the statement of financial activities
Current service cost
Net interest cost
Admin expenses
Total amount recognised in the SOFA		 2023
£
2022
£
93,000
229,000
56,000
159,000
5,000
6,000
154,000
394,000

Changes in the present value of defined benefit obligations were as follows:

At start of period
Current service cost
Interest cost
Admin expenses
Employee contributions
Actuarial (gain)/loss
Change in demographic assumptions
Experience loss/(gain) on defined benefit obligations *
Benefits paid
At 31 August		 2023
£
2022
£
10,944,000
19,760,000
93,000
229,000
456,000
318,000
5,000
6,000
24,000
27,000
(2,070,000)
(9,272,000)
(742,000)
(1,010,000)
911,000
1,108,000
(233,000)
(222,000)
9,388,000
10,944,000

44

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2023 (continued)

23 Pension and similar obligations (continued)
Changes in the fair value of
share of scheme assets:
At start of period
Interest income
Actuarial (loss)/gain *
Employer contributions
Employee contributions
Benefits paid
At 31 August
(Surplus)/Deficit		 2023
£
2022
£
9,577,000
10,008,000
400,000
159,000
(275,000)
(520,000)
120,000
125,000
24,000
27,000
(233,000)
(222,000)
9,613,000
9,577,000
(225,000)
1,367,000

As at 31 August 2023, the actuarial valuation for the Trust includes a surplus totalling £225,000 (2022: not a surplus). This surplus has not been recognised within the financial statements.

High UK corporate bond yields have resulted in high accounting discount rates which contributed to the closing surplus position. There is no specific guidance in FRS 102 in relation to surplus balances, therefore reference has been made to IAS 19. This requires any surplus recognition to be limited to the present value of economic benefits available in the form of either refunds or reduced future contributions (the asset ceiling).

The right to a refund would occur in the form of a credit payable to the Trust, for example on exiting the pension fund. Whether any refund is provided is governed by Regulation 64 of the 2013 Local Government Pension Scheme Regulations and set out in the specific local authority funding strategy statement. The payment of this credit is at the discretion of the local authority based on a variety of predetermined factors. Given there are no circumstances to suggest an exit from the fund and the determination of any credit is outside the control of the Trust, there is no basis to recognise any surplus.

With regards to reduced contributions, IAS 19 references minimum funding requirements used by certain schemes which limit the scope for contribution reductions. The LGPS administering authority must obtain a rates and adjustments certificate every three years that shows the contributions to be paid by each employer to the pension fund for the following three years, thereby limiting the availability of any contribution reductions. Additionally, the local authority funding strategy statement provides for potential reductions in future contributions, but these would be at the discretion of the local authority with, in the majority of cases, academies being part of a stabilisation approach which sets a limit on any change to contributions e.g. to 1% of pay per year. This suggests minimum funding requirements are applicable to the Trust as determined by IAS19. When actuary asset ceiling calculations assume that minimum funding requirements exist, they provide an asset ceiling value of £Nil.

45

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2023 (continued)

23 Pension and similar obligations (continued)

Based on the above, it cannot be determined that a flow of future benefits is probable therefore no asset has been recognised.

Aegon Pension Scheme

The Aegon Pension Scheme is a defined contribution scheme. The total contribution made for the year ended 31 August 2023 was £222,472 (2022 - £194,965), of which employer's contributions totalled £172,133 (2022 - £149,610) and employees' contributions totalled £50,339 (2022 - £45,355).

24 Related party transactions

The Charity has taken advantage of the exemption under FRS102 from the disclosure of transactions with its wholly owned subsidiary.

During the year the Charity made payments totalling £2,779 (2022 - £Nil) to Kitson Boyce LLP, an LLP of which one of the Trustees is a partner. At the year end, a balance of £Nil (2022 - £Nil) was owed to Kitson Boyce LLP.

46