2021-08-31-accounts

The Ormiston Trust

Annual Report comprising Trustees’ Report and Financial Statements

For the year ended 31 August 2021

Company No. 09648958 Charity Registration No. 1164358

The Ormiston Trust Annual Report for the year ended 31 August 2021

CONTENTS

PAGE Trustees’ Report 2 – 16 Strategic Report, included within Trustees’ Report Financial review Achievements and performance 6 - 10 Reserves policy and investment policy 11 Risk Management 11 - 12 Plans for the Future 12 - 13 Carbon reporting and s172 statement 14 Statement of trustees’ responsibilities 15 Independent Auditor’s Report 17 - 20 Consolidated Statement of Financial Activities 21 Parent Charity Balance Sheet 22 Consolidated Balance Sheet 23 Consolidated Statement of Cash Flows 24 Notes to the financial statements 25 – 50

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The Ormiston Trust Trustees’ Report for the year ended 31 August 2021

The Board presents its report together with financial statements for the period from 1 September 2020 to 31 August 2021.

Reference and administrative information

The name of the charity is The Ormiston Trust.

The charity is registered with the Charity Commission under number 1164358 and is a company limited by guarantee with registered number 09648958.

The registered office address of the trust is 1 Bell Yard, London, England, WC2A 2JR and principal office address of the trust is 11-13 Stone Street, Cranbrook, England, TN17 3HF.

The trust is a general charitable trust, income or capital may be distributed at the trustees’ discretion.

The trust’s main activities are the sponsorship of academies and provision of grants to other Ormiston organisations that support children and families.

These accounts consolidate Ormiston Trust and other charities under its control which are its sponsored academies.

The charity trustees who served during the year were: -

Peter Murray OBE, Chairman Duncan Murray Diana Murray Steve MacLeod Ian Brookman

Chief Executive: James Murray

Auditors

RSM UK Audit LLP St Phillips Point Temple Row Birmingham B2 5AF

Bankers

Barclays Bank PLC 35 Market Hill Sudbury Suffolk CO10 2EP

Investment Portfolio Manager

Barclays Wealth and Investment Management 1 Churchill Place Canary Wharf London E14 5HP

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The Ormiston Trust Trustees’ Report for the year ended 31 August 2021

Property Portfolio Manager

Kemsley LLP 113 New London Road Chelmsford Essex CM2 OQT

Solicitors

Ashton KCJ Waterfront House Wherry Quay Ipswich Suffolk IP4 1AS

Structure, Governance and Management

Constitution

The trust is a private company limited by guarantee and a registered charity. The charitable company's articles of association are the primary governing documents of the trust.

The trustees act as the directors of the charitable company for the purposes of company law, as well as fulfilling their obligations as trustees for the charitable activities of Ormiston Trust. The charitable company is known as The Ormiston Trust.

Details of the charity’s trustees who served during the year are included in the reference and administrative details page of the Trustees’ Report.

Trustees are responsible and accountable for creating and setting the organisation’s strategy, key objectives, holding the chief executive to account for delivery of the charity’s goals. In addition, the trustees, with the advice of the chief executive and external professionals make key decisions regarding property and equity investments, and grants to beneficiaries over £5,000. The chief executive is responsible for all other day to day operations of the trust.

The trust has majority membership control and the power to appoint the majority of directors of the subsidiaries that it sponsors: The Gateway Learning Community, Birmingham Ormiston Academy, and Ormiston Academies Trust.

Each of the subsidiaries has a board of directors, who set the strategy, strategic aims and objectives and hold the organisation’s executive to account for achieving these goals. Their executive teams run the trusts on a day to day basis.

Members’ liability

Each member of the charitable company undertakes to contribute to the assets of the charitable company in the event of it being wound up while they are a member, or within one year after they cease to be a member, such amount as may be required, not exceeding £10, for the debts and liabilities contracted before they ceased to be a member.

Trustees’ indemnities

There are no qualifying third party indemnity provisions in respect of trustees, other than trustees' and officers' insurance which is in place.

Method of recruitment and appointment or election of trustees

Potential new trustees are identified by the Board, ensuring that the skills and experience of new trustees are complementary to those of existing board members.

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The Ormiston Trust Trustees’ Report for the year ended 31 August 2021

Structure, Governance and Management (continued)

Policies and procedures adopted for the induction and training of trustees

The training and induction provided for new trustees will depend on their existing experience. Where necessary the induction process will provide training on charity, educational, legal and financial matters. All new trustees are welcome to visit supported organisations, academies and funded projects, and to meet with staff, students and other beneficiaries. All trustees are provided with copies of procedures, minutes, accounts, budgets, plans and other documents that they will need to undertake their role as trustees. Appropriate on-going training is available as necessary, delivered or co-ordinated mainly through the operational team.

Organisation

The charity’s trustees meet at regular intervals throughout the year to oversee governance, strategy, performance and risk management.

Arrangements for setting pay and remuneration of key management personnel

Pay and remuneration of key management personnel in the sponsored academies is determined by the respective academy trustees, taking into account a variety of contributory factors such as: role and responsibilities, guidance from the Education and Skills Funding Agency (ESFA), market factors, and result of annual performance review processes. The pay and remuneration of the charity’s chief executive officer is determined by the trustees using similar criteria.

Objectives and Activities

The principal object of Ormiston Trust is the support of children and their families by way of grants to Ormiston organisations and the sponsorship of Multi Academy Trusts. Four core values underpin the Ormiston Trust work.

Value 1: Empower each other

• We work with, not for people

• We value parity, not charity

• We support people to become more confident, self-reliant, and engaged in decision-making

Value 2: Deliver results

• We strive for continuous improvement of services in the organisations we support

• We make the best use of resources

• We are not afraid to fund and develop innovative projects that reflect our vision, mission, and values

Value 3: Care for people

• We develop caring and supportive relationships that foster wellbeing

• We listen to and respond to the views of our stakeholders

Values 4: Sustain success

• We monitor our impacts as well as our outcomes and embed lessons learnt

• We want to live our values so we can sustain success

Ormiston Trust is run by a small team of dedicated staff and trustees who work with various Ormiston organisations to develop, refine, support and evaluate funded projects that aim to make a significant positive difference to the lives of young people and families. Ormiston Trust funded projects are assessed according to their fit with specific outcomes and project impact principles, which focus typically on the extent of impact on beneficiaries, and the quality of project plans and evaluation processes.

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The Ormiston Trust Trustees’ Report for the year ended 31 August 2021

Objectives and Activities (continued)

In addition to providing grants and capacity, staff and trustees also fulfil the role of sponsor for its academy subsidiaries including Ormiston Academies Trust, The Gateway Learning Community, and Birmingham Ormiston Academy, by attending annual general meetings, meeting with the chairman of their boards and reviewing reports about performance. As the parent company, Ormiston Trust has a degree of control exercised over subsidiaries through its majority membership and ability to appoint subsidiary Directors. Ormiston Trust benefits from its subsidiaries as they deliver the Ormiston Trust’s strategic aim to make a significant positive impact on the life chances of young people within educational settings.

Public benefit

The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the trust's objectives and aims and in planning future activities for the year. The trustees consider that the trust's aims are demonstrably to the public benefit.

Strategic Report

Financial Review

Consolidation

The trustees have prepared consolidated accounts for the year to include the operations, assets and liabilities of academies sponsored by Ormiston Trust as the operation of Multi Academy Trusts is a major part of the trust’s objectives.

However, Ormiston Trust itself is primarily a grant making charity. It does not own its subsidiary entities, although it has the power to appoint their boards. The academies supported by Ormiston Trust are separate bodies, financed mainly by public funding, to which The Ormiston Trust does not have access.

Charity – Ormiston Trust

The trust funds its grant making activities from the income it generates from investments, primarily rental income. Ormiston Trust paid out grants of £1.3 million (2020: £1.0 million) during the year, the majority of which had been committed in previous years. After making further grant commitments of £1.2 million (2020: £0.3 million) during the year, Ormiston Trust recorded an unrestricted surplus before investment gains of £1,148k (2020: £1,433k). The unrestricted surplus after investment gains of £1,318k (2020: £1,653k) has been added to the trust’s unrestricted fund to create a surplus carried forward of £7.5 million (2020: £6.2 million) as at 31 August 2021. The Ormiston Trust finance and investment committee in partnership with external advisors are seeking to reinvest these funds into various asset categories over the next year.

In addition the trust accessed a significant National Lottery Community Fund #iwill restricted grant of £995k for work relating to expanding youth social action across more than 100 schools within and outside of the Ormiston network of schools.

The trust has a significant endowment fund of £27 million (2020: £24 million) which is invested in investment properties and generated investment gains of £3,062k (2020: £1,023k gain) in the year.

Group

The group’s total income was £259 million (2020: £275 million) mainly from public sector funding for its subsidiaries activity of educating and developing young people. The trustees consider the overall financial performance for the year to be satisfactory.

The group results reflect the performance of the Trust and its sponsored academies. These accounts show a deficit for the year of £28 million (2020: surplus of £12 million) which is after accounting for net assets acquired on the conversion of schools into the academy trusts of £nil million (2020: £24 million), capital funding and donations of £11 million (2020: £24 million) and after adjusting for the impact of the remeasurement of the group’s participation in local government pension schemes, £23 million loss (2020: £12 million loss). These large movements relate to capital assets and pension liabilities which are accounted for in separate restricted funds, the movement on unrestricted income funds for the year was a surplus of £1 million (2020: deficit of £1 million).

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The Ormiston Trust Trustees’ Report for the year ended 31 August 2021

Financial Review ( continued )

The group has net current assets of £31 million (2020: £20 million) which is represented mainly by unrestricted funds and restricted general funds balances. This provides sufficient working capital for the group’s operations. The deficit on the Pension Reserve is expected, given the deficits on the Local Government Staff Pension Schemes and these are kept under review with triennial valuations being used to inform future contribution rates.

Achievements and performance

The Ormiston Trust

The Ormiston Trust has further enhanced its strategic and operational approach over the last year. In particular it has:

• Ensured the key OAT social action programme was completed effectively

• Accessed significant new resources to continue our investment in the expansion of social action in schools across the country

• Helped Birmingham Ormiston Academies with their plans to open two new schools

• Agreed funding to test two new initiatives to help students affected young people due to Covid-19

Ormiston Trust is increasingly focused on funding fewer projects but at greater scale and impact. During this period the trust has funded 26 individual projects that have supported more than 8,200 young people, and families. Various funded projects and grant programmes were delayed or adapted due to the impact of Covid-19. Our grant funding was still able to make a significant impact in a range of different areas, as set out in the chart below.

Ormiston Trust Grant Expenditure % by focus area (20/21)

----- Start of picture text -----
Careers, Employability Skills and
7% 6% Vocational Learning
7% Creativity, Arts, and Culture
Environment
7%
27% Family, Community, and
Interpersonal Relationships
Hobbies, Life Experience, and
Adventure
Love of Learning and Study
Support
27%
Personal, Social, and Emotional
6% Life Skills
Physical Health and Sport
6%
7%
Wellbeing and Resilience
----- End of picture text -----

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The Ormiston Trust Trustees’ Report for the year ended 31 August 2021

Grant funding impact - Academy network

Even with the significant disruption caused by Covid-19, the academies were still able to use Ormiston Trust funding to run specific activities for students, their families, and surrounding communities. For example, Ormiston Trust funded:

• A programme to support Birmingham Ormiston Academy (BOA) to pay for extra office space for a group of talented students to perform in. The BOA studio was too small for class sizes due to Covid restrictions, so BOA hired 'The Rep' studio with the aim to enable talented students the opportunity to perform and express themselves creatively. Their previous studio could then be re-assigned for lectures, and the stage was used for classes. The funding for this programme is linked to another programme at BOA aimed at production filming.

• A programme aimed to support students engaging in re-writing an alternative version of 'The Wind in the Willlows'. The production of this version included more segments in order to give more students the opportunity to participate. The programme gave students the opportunity to perform on the main stage, as well as offering them experience to work closely with professional musicians, directors, and a film crew to record their production.

• Teaching Learning Responsibility (TLR) payments to help fund three members of staff to run high-achieving enrichment and leadership programmes. The aim was to benefit around 150 students.

• A programme to continue to support the Ormiston Academy Trust Chess programme, which is in its third year. The programme led to the establishment of chess clubs in at least eight academies and aimed to develop students' chess skills by running competitions between the academies. A TLR post funded to coordinate distributions of the chess grants.

• A minimum 3 year programme aimed at helping fund staff members in delivering a range of existing as well as new initiatives to help students at Ormiston Academies.

• A trust-wide, challenge-based maths competition programme, aimed at developing Social Emotional Learning skills – such as team work and communication – and encouraging a growing interest in the real life applications of maths. The programme was open to all academies and provided students with opportunities to compete outside of their normal academy environment and celebrate the breadth and every-day application of maths.

• A trust-wide performing arts competition that aimed to provide opportunities for engagement outside of the classroom and sought to raise aspirations for pupils looking to enter the creative industry. This was done by inviting all 30,000 OAT students to participate in the programme and encouraging students across the network to showcase and celebrate their talents – dance, music, drama, puppetry, poetry, storytelling, and beyond.

• A programme to develop a broad and greater offer for music and performance skills and knowledge development at Shelfield Community Academy. Supporting over 200 pupils per year group, the programme aimed to provide the most disadvantaged students with 1:1 music tuition, establish stronger links with local feeder primaries, and support the achievement of Arts Accreditation for students at SCA.

• A programme to develop the Career and Routes Education Scheme offer at Shelfield Community Academy that aimed to provide students with support and guidance for life after Covid-19. The programme sought to prepare students and parents for the complex changes in assessment and examinations and for new demands from Further and Higher Education and apprenticeship providers. This was achieved through targeted career fairs and university visits.

• A programme to support the development of an #iwill garden at Wodensborough Ormiston Academy that suffered from a number of burglaries. The programme provided students with opportunity to transform the original garden area into a new allotment and grow produce for use within the school kitchen and for donations to local food banks and families associated with the academy.

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The Ormiston Trust Trustees’ Report for the year ended 31 August 2021

Grant funding impact - Academy network (continued)

• A programme aimed at raising the profile of STEM within the Academies and create a platform for celebrating the students' academic achievements. This was done by running an American style science fair that tasked groups of five students to develop an idea and presentation using science, technology, engineering, or maths to offer solutions or alternatives to a societal problem.

• A programme developed at the City of Norwich School, aimed at increasing interest in tennis by adults and young people in the local area. This was done by providing funding to contribute to the development of school and community tennis facilities.

• A key project that the Trust continues to fund as part of the wider #iwill campaign is a programme focused on engaging 1,000’s of young people in youth social action driven from within school settings.

Grant funding impact - Ormiston Families

Even with the significant ongoing disruption caused by Covid-19, Ormiston Families used Ormiston Trust funding to deliver the two projects below.

• A programme aimed at delivering and evaluating a new service, offering the provision of remote emotional wellbeing support for students attending Ormiston Academies. The service enabled students to access support at an early stage and prevent further challenges related to school attendance and engagement. Through effective virtual mental health support, the programme aimed to help these students improve their emotional wellbeing and provide them with strategies for future resilience.

• A programme to provide a high quality, preventative service that improves the lives of young women in local communities and reduces the number of children at risk of going into care. Through tailored relationship work, sexual health education and practical support, the programme aimed to help women improve their lives and build themselves a brighter future.

In addition Ormiston Trust provided core funding:

• Contribution to cost of a monitoring and evaluation member of staff.

• To support head office, systems, premises and ICT costs.

Sponsored academies

Ormiston Trust is involved in reviewing sponsored academy performance by attendance at boards, committees and other networks and forums and conducting visits of academies and head office functions. The sections below provide a high level overview of sponsored academies performance. Individual subsidiary accounts, available from Companies House, contain significantly more detailed information.

Ormiston Academies Trust

Ormiston Academies Trust (OAT) is an educational charity and one of the largest not-for-profit multiacademy trusts in England. They are also one of the longest established trusts and have been sponsoring academies since 2009. They are a national trust with academies serving the needs of children from 15 local authorities. They are made up of 32 secondary schools, 7 primaries and 1 special school which serve a diverse set of communities. On 1 September 2021 four Alternative Provision schools in London were transferred into the Ormiston Academies Trust network that were previous part of the Tri-borough Alternative Provision (TBAP) network.

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The Ormiston Trust Trustees’ Report for the year ended 31 August 2021

Ormiston Academies Trust (continued)

• 30% of their primary and 40% of their secondary students receive pupil premium.

• 13% of their primary pupils and 10% of their secondary students speak English as an additional language

• 69% of their primary pupils are White British and 68% of their secondary students.

• 16% of their primary pupils, and 18% of their secondary students, have special education needs.

Their goal is to make a difference by achieving more together – whether it be working collaboratively within OAT or in partnership with others. They aim to inspire, educate, support, and develop all their children and young people so that they are empowered with the knowledge, skills, confidence, and resilience to go onto live happy and fulfilling lives, ones in which they contribute positively to the communities in which they live or more widely.

For more detailed information please see the Ormiston Academies Trust accounts on the Companies House website.

Birmingham Ormiston Academy

Birmingham Ormiston Academy (“BOA”), sponsored by Ormiston Trust and Birmingham City University, is a 14 to 19 academy specialising in Creative, Digital and Performing Arts. The academy trust aims to be at the forefront of the development of the arts and the creative industries. BOA’s strategy is to enable each student to achieve at the highest level possible, in an orderly, caring, friendly community, committed to promoting high standards for all.

The key aims of the Academy Trust during the year ended 31 August 2021 are summarised below:

• To develop students academically, vocationally, socially and morally.

• To develop independent, co-operative, resilient, responsible, creative young people.

• For every student to achieve their potential.

• To provide a unique and exciting curriculum offer within the creative, digital and performing arts.

• • Attract students from a wide range of backgrounds and academic abilities.

The academy trust is one hundred percent selective based on aptitude within the specialism (rather than academic ability) and, as a result, is unique in its admissions. Students attend the academy trust to primarily study BTEC Level 2 and Level 3 vocational courses. Students in Year 10 and 11 study an additional eight GCSEs (including English, Maths and Science), whilst some of the students in both Years 12 and 13 opt to study one or two additional A level subjects.

BOA Stage and Screen Production Academy opened as a state-funded 16 to 19 on 1 September 2021. This academy based in Birmingham will prepare students for a career in technical and production management, and associated fields within the arts and entertainment industry. Another new school, BOA Digital will open in September 2022.

For more detailed information please see the Birmingham Ormiston Academies group accounts on the Companies House website

The Gateway Learning Community

The Gateway Learning Community (“GLC”) opened as a Multi Academy Trust (“MAT”) academy in April 2012. The MAT currently includes one secondary school and four primary schools with the aim to provide a high quality, broad and balanced education for pupils of all abilities in the area.

The GLC’s mission is to develop confident, aspirational, resilient, high achieving, healthy, caring and fulfilled members of a diverse, truly fair and equal community. Key strategic aims include:

• The development of positive relationships to prepare students for learning and life

• Outstanding teaching, achievement, and progress.

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The Ormiston Trust Trustees’ Report for the year ended 31 August 2021

The Gateway Learning Community (continued)

• An inspiring and meaningful curriculum.

• The development of effective external partnerships for the benefit and wellbeing of their community.

• A commitment to the wellbeing of their staff.

Common to each GLC academy is that Ofsted judged pupils’ personal development, behaviour and welfare to be consistently good. Governance also continues to be a strength of the GLC recognised both by Ofsted and the Regional Commissioner.

For more detailed information please see the Gateway Learning Community group accounts on the Companies House website.

Reserves Policy – Ormiston Trust

At 31 August 2021, the Trust had total funds of £35.6 million (2020: £30.2 million) of which £27.0 million (2020: £24.0 million) related to endowment funds. The endowment funds are not available for the general purposes of the Trust.

The trustees periodically review the level of reserves retained in unrestricted funds. The trustees retain these reserves to the extent considered necessary to ensure that adequate funds are available to cover future expenditure items, both of a capital and revenue nature, which may not otherwise be covered by incoming resources. The level of these reserves should not, other than in exceptional circumstances, drop below £800,000, which would be regarded as a contingency reserve.

The trustees are mindful that investment income, which is the trust’s main source of income, is susceptible to variation through market changes. Trustees therefore consider it appropriate to hold free reserves, unrestricted reserves not held in tangible fixed assets, to meet both the trust’s commitment to provide future grants and match funding for projects, which can be in excess of £1million at any one time and to cover its obligations to support connected charities who support the aims and objectives of the charity. In addition, trustees hold free funds in anticipation of significant special projects to support young people and families.

The free reserves of the Trust at 31 August 2021 amounted to £7 million (2020: £6 million), which the trustees believe is sufficient given the trust’s foreseeable commitments.

At 31 August 2021, the Group had total funds of £405.2 million (2020: £433.7 million) of which £366.0 million (2020: £398.9 million) related to restricted funds and £27.1 million (2020: £24.0 million) related to endowment funds. The restricted funds and endowment funds are not available for the general purposes of the Group.

At 31 August 2021, the group held free reserves of £11.9 million (2020: £10.5 million) which the trustees believe is sufficient to support the group’s charitable objectives and foreseeable commitments. The level of actual reserves varies from one academy to another from time to time.

The restricted fixed asset fund includes £519m (2020: £524m) that can only be realised by the disposal of tangible fixed assets. Similar to other trusts, the support staff of the Trust and its academies are members of various local government pension schemes (LGPSs), in which there are significant funding deficits. Details of these obligations and the actuarial assumptions applied in the valuation of the liability are included in the notes to the financial statements.

Arrangements vary between the different LGPSs however the deficits on each scheme are being funded through additional contributions. The Trustees are satisfied that the funding of the pension schemes does not represent a going concern risk for the Group.

The academy trusts hold restricted funds funded from public funding; these are shown in note 24 in line with guidance provided by the Education & Skills Funding Agency.

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The Ormiston Trust Trustees’ Report for the year ended 31 August 2021

Investment Policy – Ormiston Trust

The charity’s long term investment aims: -

• To achieve a stable long term income for the trust to enable a consistent stream of income to support young and families.

• To protect, as far as possible, both the income and the underlying assets, against the effects of inflation.

The Charity invests available cash resources in short term liquid deposits and stocks and shares, and property using Barclays Wealth Investment Management and Kemsley LLP respectively to maximise return on these resources. The OT trustees consider the income return on investments of 5% during the year to be reasonable when measured against the various published indices used to monitor performance and the prevailing market conditions. The fair value of the Charity’s investments at 31 August 2021 amounted to £43.2m (2020: £39.4m).

Risk management

The trustees have assessed the major risks to which the trust is exposed, in particular those relating to Covid-19, generating sufficient income to cover its grant commitments, pensions, academic performance, provision of facilities, finance and other operational areas of the group, and its finances. The trustees have adopted procedures to mitigate these risks for the executive team to implement and report on.

Where financial risk still remains, they have ensured they have insurance cover. The trust has an effective system of internal financial controls. The principal operational risks and uncertainties relating to the group are:

to the group are:
Risk	Mitigation
Covid-19 impact on the education and safety of students	Academies are regularly monitored at a board and operational levels about the range of mitigating actions put in place to ensure the safety of young people and actions to maintain educational outcomes.
Covid-19 impact on the wellbeing of school staff	Academies are regularly monitored at a board and operational levels about the range of mitigating actions put in place to ensure the wellbeing of staff.
The impact of grants on young people and families is limited and / or not sustained	Key underlying impact and sustainability grant giving principles guide the decisions of trustees in review of all applications for funding.
The possibility of a medium and or long- term decline in asset values reduces the amount available for operational expenditure in the trust	Sufficient headroom is maintained in respect of asset values and grants committed to mitigate this risk.
Safeguarding policies and procedures are deemed to be inadequate or a serious safeguarding incident occurs which puts a child at risk	Safeguarding audits are carried out across all academies on a regular basis. There are regular safeguarding reports prepared for trustees.
Incident which could damage the reputation of the group	Great care is taken at all times to maintain high standards of performance and care across the group and be watchful for possible incidents and issues. Marketing staff are equipped to provide reactive support to provide an accurate account regarding an issue.

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The Ormiston Trust Trustees’ Report for the year ended 31 August 2021

Lack of clarity regarding governance and sponsorship roles of the sponsored academies and Ormiston Trust respectively	Schemes of delegation are clearly explained, key AGM and performance reporting activities are conducted according to good practice guidelines.
Exam results and/or Ofsted judgements are significantly below expectations within an academy or more generally	Projected results are closely monitored by school improvement committees and head office school improvement staff engage regularly with academies.
Unexpected changes in funding of academies reduces academy income	All academies produce annual budgets and longer term plans which are recommended by their local governing body and governors for approval by the academy trustee board. Academies are challenged if budgetary projections are not realistic and robust.
Group overall is unable to produce a balanced budget	All academies produce annual budgets and longer term plans which are recommended by their local governing body for approval by the academy trustee board. Academies are challenged if budgetary projections are not realistic and robust. Restructuring plans can be put into place to reduce costs, if necessary, and more is being done to share back office facilities between academies.

Fundraising

Fundraising has been undertaken through salaried members of the group. No professional fundraisers or commercial participators have been engaged.

The group abides by the code of fundraising practice. Fundraising activities in this financial year consisted of applications to grant making trusts and the National Lottery Community Fund. No appeals to members of the public have been made by the charity.

The fundraising function of the group is monitored through regular line management, the review of grant applications and the monitoring and evaluation of grants received.

Funds held as custodian trustee on behalf of others

The trust does not act as custodian trustee on behalf of any others.

Plans for the future

The Ormiston Trust

The Ormiston Trust aims to make further progress implementing its three year strategic plan to: improve still further its central governance oversight function, provide outstanding support for its subsidiaries and supported organisations, provide more grants over longer periods, increase the emphasis on evaluating ‘what works’, and invest prudently in targeted assets classes to continue to generate income to pursue the trust’s goals. The Trust will also ensure that a significant new project which plans to embed youth social action across more than 100 schools is successfully implemented over the next 16 months.

Ormiston Academies Trust

OAT are committed to ensuring the best possible education to their children and young people, all with the aim of improving their life chances and equipping them with the skills they will need in life.

Over the next year, they will utilise their reserves as appropriate to invest in school improvement and manage their risks (e.g., higher energy costs). They fully expect their reserves to reduce over the coming year as they plan to make targeted investment in areas of focus such as attendance, behaviour, SEND, inclusion, literacy, curriculum development, great people and fit for purpose technology and facilities.

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The Ormiston Trust Trustees’ Report for the year ended 31 August 2021

Plans for the future (continued)

Ormiston Academies Trust (continued)

Their reserves policy has recently been amended to allow targeted investments to make a difference to those schools and into trust wide initiatives that will make the biggest difference. They are starting to realise the benefits of their central investment in teaching and learning and expect to increase investment in this area over the coming years. While these initiatives are decided centrally, they are made with a children first mindset and the results will be seen both in and outside of the classroom. At the same time, they will be looking to firmly embed those schools which joined them during the last two years including the new London based Alternative Provision schools which were transferred to OAT on 1 September 2021. Inclusion, SEND and mental health will receive an increased level of focus over the next few years and they expect to invest across all of these areas.

They expect the Trust to continue to grow sustainably, where this aligns with their values and is in accord with their strategic direction. When taking on new schools they are mindful of the balance of primary, secondary, and special schools within the Trust. Last but not least, their people really are their greatest asset – their people and their values are what makes OAT a special family to be part of. They are proud of both. They wish to attract, recruit and retain the best staff and they will be investing further in staff wellbeing, training and development over the coming year.

Birmingham Ormiston Academy

The BOA group will focus on continuing to raise standards of achievement, focusing on: improving the quality of teaching and learning; quality assurance and accountability and ensuing the process of education is a partnership between the learning, the school, the parents and other key stakeholders. BOA Digital will also open as a state-funded 11 to 18 academy based in Birmingham on 1 September 2022. This academy will provide an outstanding and distinctive education through a digital and creative curriculum.

The Gateway Learning Community

The GLC aims to secure the GLC as a successful, sustainable, and respected organisation, characterised by an integrated culture of professional generosity, collaboration, challenge and support, all within an institutionally positive ethos. Specifically the GLC aims to: develop and expand the training and development of their own teaching workforce and to maintain the well-being of all staff; launch a single bank account and consolidate the budget reporting systems; update the 5 year site plans for each academy and link these to the 3-year budget forecasts; implement the CEO succession plan; successfully introduce Nursery provision at GPFS and work towards Nursery provision at HPA; secure the reputation of the GLC as:

• a Trust that delivers its stated mission, operates under an agreed set of values, and improves upon its best.

• the preferred choice for Year 6 students applying for places for Year 7 and a natural transition pathway within the GLC.

• a partner in community projects (i.e. Ormiston Trust Lottery Funded Social Action, Tilbury Town FC etc).

Employee consultation and disabled employees

The group encourages the involvement of its employees in its management through regular meetings of the worker/trustee councils which have responsibility for the dissemination of information of particular concern to employees (including financial and economic factors affecting the performance of the trust) and for receiving their views on important matters of policy.

The group will employ disabled persons when they appear to be suitable for a particular vacancy and every effort is made to ensure that they are given full and fair consideration when such vacancies arise. There is a training scheme in operation so that employees who have been injured or disabled in the course of their employment can, where possible, continue in employment with the group.

During employment, the trust seeks to work with employees, taking into account their personal circumstances, to ensure appropriate training, development and advancement opportunities are available to enable them to reach their full potential.

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The Ormiston Trust Trustees’ Report for the year ended 31 August 2021

Post Balance Sheet Events

On 1 September 2021 four Alternative Provision schools in London were transferred into the Ormiston Academies Trust network that were previous part of the Tri-borough Alternative Provision (TBAP) network.

Streamlined energy and carbon reporting

From April 2019, Streamlined Energy and Carbon Reporting came into effect and is a new mandatory energy and carbon reporting scheme for larger companies within the United Kingdom. Ormiston Trust meets the definition of a ‘large’ consolidated group and therefore should apply the new guidelines. However, as a stand-alone company Ormiston Trust does not meet the relevant criteria as it falls below the 40,000kWh threshold and only one of the UK subsidiaries singularly meet the criteria. As one of the UK entities qualify at an individual level, the Group has disclosed the information for Ormiston Academies Trust only, as below:

• As part of OAT’s commitment to improve its energy efficiency and decrease its carbon footprint the Trust developed a new energy management strategy in 2020. This includes a number of initiatives some of which have been implemented across the Trust. These are namely:

• A centralised gas and electricity online dashboard monitoring system which uses information from smart meters, has been installed across sites to improve our understanding of energy consumption and help identify areas to reduce consumption.

• We have invested in LED lighting across the Trust estate, 30% of lights within our academies are LED, the aim is to reduce energy consumption by over 20% using LED lighting technologies.

• We have installed PV panels on the roof of 16 academies with the aim of reducing energy consumption by over 20%.

• Approximately 30% of the Trust electricity bill is linked to the running of ICT servers and air conditioning that support the core ICT solutions within each academy. The Trust is currently working to move more of its IT infrastructure to the cloud to ensure greater resilience of the systems, reduce carbon consumption and facilitate improved cyber security of data.

• The plan over the next two years is to undertake detailed energy audits of all of the Trust academies to support each academy in reducing their carbon footprint without incurring substantial capital investments.

UK greenhouse gas emissions and energy use data for the period 1 September 2020 to 31 August 2021

14

The Ormiston Trust Trustees’ Report for the year ended 31 August 2021

Section 172 statement

In accordance with Section 172 of the Companies Act 2006, the directors (who form the Board of Trustees) complied with their duty to promote the success of the Group through their oversight of the BOA, OAT and GLC strategic plans and on-going review of performance against this. All decisions are made in line with these strategic plans, with the long-term interests of the charity and its stakeholders in mind.

Culture, and employee welfare and engagement are important to Trustees. This is evidenced by the creation of employee consultation groups which has been established to focus on these areas. Our academy trusts support flexible working practices, have improved communication with staff in recent years and place emphasis on staff wellbeing.

Trustees understand the importance of maintaining productive relationships within stakeholders, underlined by a strong sense of purpose. We proactively collaborate with a variety of stakeholders within the sector to share knowledge and learnings as appropriate.

Trustees are mindful of the Group’s impact on the community and environment. Our communities, social action and enrichment sit at the heart of everything we do, and this is reflected in our academies curriculum. We are committed to making the biggest difference to our pupils, inside and outside the classroom, regardless of their background.

As a charity, we are committed to making the biggest difference to our beneficiaries regardless of their background. The Group’s reputation and business conduct are paramount to its future success and ability to deliver value to its various stakeholders. The Group has an experienced Trustee Board who are responsible for ensuring corporate governance best practice is followed.

Statement of Trustees' Responsibilities

The trustees (who are also directors of the charity for the purposes of company law) are responsible for preparing the Trustees’ Report (including the incorporated Strategic Report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going-concern basis unless it is inappropriate to presume that the charitable company and group will continue in business.

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

A resolution proposing re-appointment of RSM UK Audit LLP will be put to the members.

15

The Ormiston Trust Trustees’ Report for the year ended 31 August 2021

Statement as to disclosure of information to auditor

The trustees have confirmed that, as far as they are aware, there is no relevant audit information of which the auditor is unaware. Each of the trustees have confirmed that they have taken all the steps that they ought to have taken as trustees in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor.

The Trustees' Report which also includes the Directors Report required by company law is approved on behalf of the board of trustees and the strategic report (included therein) is approved by the board of trustees in their capacity as the directors at a meeting on 27 May 2022 and signed on its behalf by:

I C Brookman

P G Murray I C Brookman Chair of Trustees Trustee

16

The Ormiston Trust Independent Auditor’s Report to the members of The Ormiston Trust

Opinion

We have audited the financial statements of The Ormiston Trust (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 August 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Parent Charity Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, including 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:

• give a true and fair view of the state of the group’s and the parent charitable company’s affairs as at 31 August 2021 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical 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 or parent charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are 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 other information comprises the information included in the Annual Report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Annual Report. Our 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.

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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

17

The Ormiston Trust Independent Auditor’s Report to the members of The Ormiston Trust

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the Trustees’ Report, which includes the Directors’ Report and the Strategic Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the Directors’ Report and the Strategic Report included within the Trustees’ Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report or the Strategic Report included within 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:

• adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent charitable company financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of trustees’ remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ Responsibilities set out on page 15, the trustees (who are also the directors of the charitable company for the purposes of company law) 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 parent charitable company’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 parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that 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.

The extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

18

The Ormiston Trust Independent Auditor’s Report to the members of The Ormiston Trust

The extent to which the audit was considered capable of detecting irregularities, including fraud (continued)

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the group audit engagement team and component auditors:

• obtained an understanding of the nature of the sector, including the legal and regulatory framework that the group and parent charitable company operates in and how the group and parent charitable company are complying with the legal and regulatory frameworks;

• inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;

• discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102) and Companies Act 2006. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Trustees’ Report.

The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to the Education Inspection Framework under the Education Act 2005 (as amended), Keeping Children Safe in Education under the Education Act 2002, the UK General Data Protection Regulation (UK GDPR) and the Data Protection Act 2018. We performed audit procedures to inquire of management and those charged with governance whether the charitable company is in compliance with these laws and regulations and inspected correspondence with regulatory authorities.

The group audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business, challenging judgments and estimates.

All relevant laws and regulations identified at a Group level and areas susceptible to fraud that could have a material effect on the consolidated financial statements were communicated to component auditors. Any instances of non-compliance with laws and regulations identified and communicated by a component auditor were considered in our group audit approach.

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

19

The Ormiston Trust Independent Auditor’s Report to the members of The Ormiston Trust

Use of our report

This report is made solely to the charitable company’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 charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Paul Oxtoby

Paul Oxtoby (Senior Statutory Auditor) For and on behalf of RSM UK AUDIT LLP, Statutory Auditor Chartered Accountants St Philips Point Temple Row Birmingham West Midlands B2 5AF Date: 31/05/22

20

The Ormiston Trust Consolidated statement of financial activities (incorporating income and expenditure account) for the year ended 31 August 2021

Note Unrestricted funds £’000 Endowment funds £’000 Income and endowments from: Donations and grants 2 193 - Donations – transfer into the group - - Other trading activities 3 1,731 - Investments 4 2,086 - Charitable activities: Funding for the Academies educational operations 5 1,661 - Total income 5,671 - Expenditure on: Raising funds 7 794 - Charitable activities Academy educational operations 2,837 - Grant making 8 954 - Total expenditure 6 4,585 - Net gains on Investments 16 1,165 3,062 Net (expenditure)/income 2,251 3,062 Gross transfers between funds 24/25 (790) - Net (expenditure)/income before other recognised gains and losses 1,461 3,062 Other recognised gains and losses: Actuarial loss on remeasurement of defined benefit pension schemes 29 - - Net movement in funds 1,461 3,062 Total funds brought forward 10,698 24,015 Funds carried forward at 31 August 2021 12,159 27,077	Restricted funds £’000 10,781 - 536 - 241,928 253,245 - 263,551 - 263,551 - (10,306) 790 (9,516) (23,440) (32,956) 398,944 365,988	2021 Total £’000 10,974 - 2,267 2,086 243,589 258,916 794 266,388 954 268,136 4,227 (4,993) - (4,993) (23,440) (28,433) 433,657 405,224	2020 Total £’000 24,019 24,197 3,412 2,614 221,238 275,480 927 250,266 273 251,466 933 24,947 - 24,947 (12,452) 12,495 421,162 433,657

21

The Ormiston Trust Parent Charity Balance Sheet as at 31 August 2021

Company Number: 09648958

Notes Fixed assets Tangible assets 15 Investments 16 Current assets Debtors 18 Cash at bank and in hand Creditors:Amounts falling due within one year 19 Net current assets Total assets less current liabilities Creditors:Amounts falling due after more than one year 20 Net assets Funds Endowment funds 23 Restricted funds 24 Unrestricted funds 25	2021 £’000 225 43,150 43,375 1,095 2,630 3,725 (990) 2,735 46,110 (10,498) 35,612 27,077 995 7,540 35,612	2020 £’000 225 39,432 39,657 687 1,466 2,153 (965) 1,188 40,845 (10,608) 30,237 24,015 - 6,222 30,237

As permitted by s408 Companies Act 2006, the trust has not presented its own Statement of Financial Activities and related notes as it prepared group accounts. The trust’s surplus for the year was £5,375k (2020: £2,366k).

The financial statements were approved by the board of trustees and authorised for issue on 27 May 2022 and are signed on their behalf by:

I C Brookman

___ ___ P G Murray I C Brookman Chair of Trustees Trustee

22

The Ormiston Trust Consolidated Balance Sheet as at 31 August 2021

The Ormiston Trust Consolidated Balance Sheet	The Ormiston Trust Consolidated Balance Sheet
as at 31 August 2021 Company Number: 09648958 Notes 2021 £’000 2020 £’000 Fixed assets Tangible assets 15 510,613 517,683 Intangible assets 14 172 16 Investments 16 43,150 39,432 553,935 557,131 Current assets Stock 17 359 402 Debtors 18 9,232 8,787 Cash at bank and in hand 41,713 28,843 51,304 38,032 Creditors:Amounts falling due within one year 19 (20,260) (18,182) Net current assets 31,044 19,850 Total assets less current liabilities 584,979 576,981 Creditors: Amounts falling due after one year 20 (12,236) (12,501) Provisions for liabilities 21 (1,567) (579) Net assets excluding pension liability 571,176 563,901 Pension scheme liability 29 (165,952) (130,244) Net assets including pension liability 405,224 433,657 Funds Endowment funds 23 27,077 24,015 Restricted funds Restricted fixed asset fund 24 518,971 523,896 Restricted general fund 24 12,969 5,292 Restricted pension reserve 24 (165,952) (130,244) Total restricted funds 365,988 398,944 Unrestricted funds General funds 25 12,159 10,698 Total unrestricted funds 12,159 10,698 405,224 433,657
Notes Fixed assets Tangible assets 15 Intangible assets 14 Investments 16 Current assets Stock 17 Debtors 18 Cash at bank and in hand Creditors:Amounts falling due within one year 19 Net current assets Total assets less current liabilities Creditors: Amounts falling due after one year 20 Provisions for liabilities 21 Net assets excluding pension liability Pension scheme liability 29 Net assets including pension liability Funds Endowment funds 23 Restricted funds Restricted fixed asset fund 24 Restricted general fund 24 Restricted pension reserve 24 Total restricted funds Unrestricted funds General funds 25 Total unrestricted funds	2021 £’000 510,613 172 43,150 553,935 359 9,232 41,713 51,304 (20,260) 31,044 584,979 (12,236) (1,567) 571,176 (165,952) 405,224 27,077 518,971 12,969 (165,952) 365,988 12,159 12,159 405,224

The financial statements were approved by the board of trustees and authorised for issue on 27 May 2022 and are signed on their behalf by:

I C Brookman

___ ___ P G Murray I C Brookman Chair of Trustees Trustee

23

The Ormiston Trust Consolidated Statement of Cash Flows for the year ended 31 August 2021

Notes Cashflows from operating activities Net cash provided by/(used in) operating activities 33 Cashflows from investing activities Rental income, interest and dividends from investments Capital grants DFE and ESFA Purchase of intangible assets Purchase of tangible fixed assets Purchase of investments Proceeds from sale of investments Cash transferred on school joining academy trust Net cash provided by investing activities Cashflows from financing activities Interest paid New bank loan Repayment of loan Education and Skills Funding Agency loans Salix loan Net cash used in financial activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period 34	2021 £’000 9,604 2,048 7,226 (11) (6,232) (5,726) 6,235 - 3,540 (226) 300 (20) (171) (157) (274) 12,870 28,843 41,713	2020 £’000 (2,115) 2,614 7,545 (5) (5,171) (8,913) 7,691 87 3,848 (274) - - (30) (158) (462) 1,271 27,572 28,843

24

The Ormiston Trust for the year ended 31 August 2021 Notes to the financial statements

1. Accounting Policies

Ormiston Trust (“the trust or charity”) is a charitable company, private and limited by guarantee, and incorporated in England. The address of its registered office and principal place of business is given on page 2 and the nature of its operations are set out in the Trustees’ Report.

Basis of accounting

The financial statements of the trust, which is a public benefit entity under FRS 102, have been prepared under the historical cost convention, as modified by the measurement of investments and the non-educational building in tangible fixed assets at fair value, in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the 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 (FRS 102) (Charities SORP (FRS 102)) and the Companies Act 2006.

The financial statements are presented in sterling which is also the functional currency of the trust. Monetary amounts in these financial statements are rounded to the nearest whole £1,000, except where otherwise indicated. In accordance with FRS 102, the trust has taken advantage of the exemption from preparing its own cashflow statement. A summary of the principal accounting policies, which have been applied consistently, except where noted, is set out below.

Going concern

The Trustees have reviewed in detail the Charity’s and Group’s position and the appropriate basis on which to prepare the financial statements, including considering the economic risks which could see a potential drop in the value of investments, cuts in some areas of income and an increase in pension scheme liabilities caused by a fall of investment values within the schemes. Whilst the Trustees recognise that the next year will continue to be a challenging one and that it may be necessary to draw on some of the reserves, some of which have been specifically established to provide financial resilience, they have concluded that it remains appropriate to prepare the financial statements on the going concern basis.

Trust statement of financial activities

As permitted by s408 of Companies Act 2006, the Trust has not presented its own statement of financial activities as it prepares group accounts and the Trust’s individual balance sheet shows the Trust's surplus or deficit for the financial year.

Basis of consolidation

The Consolidated Statement of Financial Activities and Consolidated Balance Sheet consolidate on a line-by-line basis the financial statements of the charity and those of its direct and indirect subsidiaries being Ormiston Academies Trust, The Gateway Learning Community, Birmingham Ormiston Academy and Birmingham Ormiston Academy Theatre Limited (a subsidiary of Birmingham Ormiston Academy). The charity has the ability to control these subsidiaries by having the right to appoint/remove a majority of their trustees. Both the charity and its subsidiaries have the objectives of enhancing education.

Transfer to an academy trust

Transfers of academies into the Trust involve the transfer of identifiable assets and liabilities and the operations of the academies for £nil consideration. The substance of a transfer is that of a gift and it is accounted for on that basis as set out below.

Assets and liabilities transferred from a transferring Trust to the group are included at their fair value. The fair value has been derived based on that of equivalent items. The amounts are recognised under the appropriate balance sheet categories, with a corresponding amount recognised in Donations – transfer of existing academy into the trust in the statement of financial activities and analysed under unrestricted funds, restricted general funds and restricted fixed asset funds.

25

The Ormiston Trust for the year ended 31 August 2021 Notes to the financial statements

1. Accounting Policies (continued)

Income

All incoming resources are recognised when the group has entitlement to the funds, the receipt is probable and the amount can be measured reliably.

Grants receivable

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.

General Annual Grant is recognised in full in the Statement of Financial Activities in the period for which it is receivable, and any abatement in respect of the period is deducted from income and recognised as a liability.

Capital grants are recognised in full when there is an unconditional entitlement to the grant. Unspent amounts of capital grants are reflected on the Balance Sheet in the restricted fixed asset fund. Capital grants are recognised when there is an entitlement and are not deferred over the life of the assets on which they are expended.

Sponsorship Income

Sponsorship income provided to the group which amounts to a donation is recognised in the Statement of Financial Activities in the period in which it is receivable (where there are no performance–related conditions), where receipt is probable and it can be measured reliably.

Donations

Donations are recognised on a receivable basis (where there are no performance-related conditions) where receipt is probable, and the amount can be reliably measured. Donated assets are recognised at fair value, when risks and rewards of ownership of the asset pass to the group.

Donated services and gifts in kind

Donated services and gifts in kind provided to the group are recognised at their open market value in the period in which they are receivable as income, where the benefits to the group can be reliably measured. An equivalent amount is included as expenditure under the relevant heading in the Statement of Financial Activities, except where the gift in kind was a fixed asset in which case the amount is included in the appropriate fixed asset category and depreciated over the useful economic life in accordance with the group’s policies.

Interest receivable

Interest receivable is included within the Statement of Financial Activities on a receivable basis.

Rent receivable

Rental income arising from operating leases is recognised on a straight-line basis over the lease term on ongoing leases stated after deducting property disbursements.

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 recognised in the period in which it is incurred and where appropriate, include irrecoverable VAT. They have been classified under headings that aggregate all costs relating to that activity.

26

The Ormiston Trust for the year ended 31 August 2021 Notes to the financial statements

1. Accounting Policies (continued)

Allocation of costs

In accordance with the Charities SORP, expenditure has been analysed between raising funds and the group’s charitable activities. Items of expenditure which involve more than one cost category have been apportioned on a reasonable, justifiable and consistent basis for the cost category concerned. Support staff costs are allocated on the basis of time spent on each activity and depreciation charges on the basis of the proportion of the assets’ use which is utilised by each activity.

Grants payable

Grants payable are payments made to third parties in the furtherance of the charitable objectives of the group. Single or multi-year grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the group has agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and any condition attaching to the grant is outside of the control of the group.

Governance costs

Governance costs include the costs attributable to the group’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’ meetings and reimbursed expenses.

Fund accounting

The group has an endowment fund, created by a gift from the Murray family. The income of the fund is unrestricted. The capital can be spent if the trustees so determine.

General funds represent those resources which may be used towards meeting the objects of the discretion of the trustees of the individual charities.

Restricted funds comprise grants from the Department of Education and other donors which are to be used for specific purposes as explained in note 24.

Stock

Stocks are valued at the lower of cost and net realisable value.

Investments

Listed Investments, Leasehold Investment Properties and Freehold Investment Properties are stated at their fair value at the Balance Sheet date. The listed investment fair value is determined by the bid price of the investments and the fair value of the leasehold and freehold investment properties is determined by valuation using the expertise of the founding member, Mr P G Murray, a qualified chartered surveyor.

Any gain or loss on revaluation and disposals is taken to the Statement of Financial Activities.

Tangible fixed assets and depreciation

Tangible fixed assets acquired since the group was established are included in the accounts at cost with the exception of one non-educational building which is included at valuation.

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 life. Where there are specific conditions attached to the funding requiring the continued use of the asset, the related grants are credited to a restricted fixed asset fund in the Statement of Financial Activities and carried forward in the Balance Sheet. Depreciation on the relevant assets is charged directly to the restricted fixed asset fund in the Statement of Financial Activities incorporating income and expenditure account. Where tangible fixed assets have been acquired with unrestricted funds, depreciation on such assets is charged to the unrestricted fund. Where tangible fixed assets (excluding property) are gifted to the group, these are initially recorded at valuation which is treated as deemed cost. Assets costing less than £1,000 (Ormiston Academies Trust - £10,000) are written off in the year of acquisition. All other assets are capitalised.

27

The Ormiston Trust for the year ended 31 August 2021 Notes to the financial statements

1. Accounting Policies (continued)

Tangible fixed assets and depreciation (continued)

Depreciation is provided on a straight-line basis on the cost and valuation of tangible fixed assets, to write them down to their estimated residual values over their expected useful lives. Land is not depreciated. The principal annual rates used on other assets are:

Freehold and long leasehold property 2%-3.3% Short leasehold buildings 20% Furniture and equipment 10%-15% Computer equipment and software 20%-50% Motor vehicles 15%-33%

Assets in the course of construction are included at cost. Depreciation on these assets is not charged until they are brought into use.

The fixed assets transferred to the group on conversion to an academy have been initially recognised at their fair value being a reasonable estimate of the current market value that would be expected to be paid in an open market for an equivalent item.

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicated 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. Impairments losses are recognised in the Statement of Financial Activities.

With respect to the buildings from which three of the academies operate which are subject to a PFI agreement, these are legally owned by the Stoke on Trent Local Authority and Sandwell Local Authority and the relevant academies are able to use the buildings under the terms of a licence to occupy. The licence to occupy gives the right to use these buildings and the substance of the licence is that this will be on an ongoing basis reflecting the historic arrangements in place therefore substantially all the risks and rewards of ownership have not been transferred to the academies and the assets have not been recognised within tangible fixed assets.

Intangible assets – software

Intangible assets acquired separately are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised so as to write off the cost of each asset to its residual value over its expected useful life as follows:

IT Software 20% straight line

Leased assets

Rentals under operating leases are charged on a straight-line basis over the lease term.

The group occupies a number of school buildings under short term arrangements whilst construction of new buildings is ongoing. No rental is being charged for these buildings. Due to the specialist nature of these properties, the trustees do not consider that this benefit is reasonably quantifiable and measurable and have therefore not recognised a notional market rent charge and equivalent donation for these amounts.

Liabilities and other provisions

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 group anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods and services it must provide.

28

The Ormiston Trust for the year ended 31 August 2021 Notes to the financial statements

1. Accounting Policies (continued)

Liabilities and other provisions (continued)

Provisions are recognised when the Trust 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 as a financing cost in the period it arises in the Statement of Financial Activities and is allocated to the appropriate expenditure heading.

Short term employment and termination benefits

Short term employment benefits such as salaries and compensated absences (holiday pay) are recognised as an expense in the year in which the employees render service to the Trust. The cost of any unused holiday entitlement the trust expects to pay in future periods is recognised in the period the employees' services are rendered.

The best estimate of the expenditure required to settle an obligation for termination benefits is recognised immediately as an expense when the Trust is demonstrably committed to terminating the employment of an employee or to provide termination benefits.

Financial instruments

The Group has chosen to adopt Sections 11 and 12 of FRS 102 in full in respect of financial instruments.

Financial assets and liabilities

Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the instrument.

Financial liabilities are classified according to the substance of the financial instrument's contractual obligations, rather than the financial instrument's legal form.

All financial assets and liabilities are initially measured at transaction price (including transaction costs), unless the arrangement constitutes a financing transaction. A financial asset or financial liability that is payable or receivable in one year is measured at the undiscounted amount expected to be received or paid net of impairment, unless it is a financing transaction. If an agreement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Concessionary loans are initially measured at the amount received. In subsequent years, the carrying amount of concessionary loans is adjusted to reflect any interest payable, where relevant.

Financial assets and financial liabilities are offset only when there is a current legally enforceable right to set off the recognised amounts and the intention to either settle on a net basis, or to realise the asset and settle the liability simultaneously.

Derecognition of financial assets and liabilities

A financial asset is derecognised only when the contractual rights to cash flow expire or are settled, or substantially all the risks and the rewards of ownership are transferred to another party, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. A financial liability (or part thereof) is derecognised when the obligation specified in the contract is discharged, cancelled or expires.

Pensions

Defined Contribution Schemes

The charity operates a defined contribution pension scheme for the benefit of its employees. Contributions are recognised in the year they are payable. The pensions contributions are charged to the funds and activities in line with the relevant employees.

29

The Ormiston Trust for the year ended 31 August 2021 Notes to the financial statements

1. Accounting Policies (continued)

Pensions (continued)

Defined Benefit Schemes

Retirement benefits to employees of the group’s sponsored academies are provided by the Teachers’ Pension Scheme (“TPS”) and the various Local Government Pension Schemes (“LGPS”). These are defined benefit schemes, are contracted out of the State Earnings Relating Pension Scheme (“SERPS”), and in the case of LGPSs the assets are held separately from those of the group.

The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees’ working lives with in 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 projected unit method.

The TPS is a multi-employer scheme but there is insufficient information available to use defined benefit accounting. The TPS is therefore treated as a defined contribution scheme for accounting purposes and the contributions are recognised in the period to which they relate. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments.

The LGPSs are funded schemes and for each the assets are held separately from those of the group 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 high quality corporate bonds of equivalent terms and currency liabilities. Actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The amounts charged to net income are the current service costs and the costs of scheme introductions, benefit changes, settlements and curtailments. They are included as part of staff costs as incurred. Net interest on the net defined benefit liabilities/assets 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 the fair value of the scheme asses 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 gains and losses. Actuarial gains and losses are recognised immediately in other recognised gains and losses.

Taxation

All entities in the group are considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the group is potentially exempt from taxation in respect of income or capital gains received within categories covered by chapter 3 part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Agency arrangements

The group acts as an agent in distributing 16-19 bursary funds from the ESFA. Payments received from the ESFA and subsequent disbursements to students are excluded from the Statement of Financial Activities as the group does not have control over charitable application of the funds. The group can use up to 5% of the allocation towards its own administration costs and this would be recognised in the Statement of Financial Activities, however the group does not retain this 5%.

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.

30

The Ormiston Trust for the year ended 31 August 2021 Notes to the financial statements

1. Accounting Policies (continued)

Critical accounting estimates and areas of judgement (continued)

The group 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 shown in note 29 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 29, will impact the carrying amount of the pension liabilities. Furthermore, a roll forward approach which projects results from the latest full actuarial valuation performed at 31 March 2019 has been used by the actuaries in valuing the pensions liabilities at 31 August 2021. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of pension liabilities.

The trust values its investment properties at fair value, based on an open market value for existing use of the properties. The valuations are made by a qualified Chartered Surveyor, using a variety of assumptions to determine the valuation of the investment’s properties. Any changes in these assumptions would impact on the carrying value of these investment properties.

Critical areas of judgement

At three of its academies, the group occupies buildings under PFI agreements with the local authority and has applied judgement in determining that these buildings should not be capitalised on the Balance Sheet.

The Trust has included an enhanced pension provision in the financial statements. An estimate of the expected future cost of any enhancement to the ongoing pension of a former member of staff is charged in full to the Statement of Financial Activities in the year that the provision is created. In subsequent years, a charge is made to the provision in the balance sheet. The provision is determined using a variety of assumptions. Any changes in these assumptions would impact on the carrying value of this provision.

The group does not believe that there are any other additional critical areas where judgement is used.

2. Donations and grants

Unrestricted funds £’000 Restricted funds £’000 Donations 192 2,551 Capital grants - 7,226 Private sponsorship 1 9 Other grants - 995 193 10,781	Total 2021 £’000 Total 2020 £’000 2,743 16,390 7,226 7,545 10 84 995 - 10,974 24,019

The income from donations and capital grants was £10,974k (2020: £24,019k) of which £193k unrestricted (2020: £210k), and £10,781k was restricted (2020: £23,809k).

31

The Ormiston Trust for the year ended 31 August 2021 Notes to the financial statements

3. Other trading activities

Other trading activities
	Unrestricted	Restricted	Total	Total
	funds	funds	2021	2020
	£’000	£’000	£’000	£’000
Academies’ income relating to hire
of facilities, academy trips, catering
and other activities	1,731	536	2,267	3,412

The income from other trading activities was £2,267k (2020: £3,412k) of which £1,731k was unrestricted (2020: £2,289k) and £536k was restricted (2020: £1,123k).

4. Investment income

Rental income Bank interest Dividends	2021 £’000 1,853 71 162 2,086	2020 £’000 2,426 71 117 2,614

In 2021 and 2020, the total investment income was in respect of unrestricted funds.

5. Funding for the group’s educational operations – Group

Unrestricted funds £’000 Restricted funds £’000 Total 2021 £’000 DFE/ESFA grants General Annual Grants (GAG) - 198,982 198,982 Start-up grants - - - Capital grants - 25 25 Other DFE/ESFA grants - 24,999 24,999 Teaching school - 2,459 2,459 - 226,465 226,465 Local authority grants - 5,782 5,782 Other government grants - 3,282 3,282 - 9,064 9,064 Coronavirus additional funding - 5,658 5,658 Other income resources 1,661 741 2,402 Total income 1,661 241,928 243,589

Total 2020 £’000 182,043 18 25 24,932 2,120 209,138 5,114 2,402 7,516 194 4,390 221,238

The income for educational operations was £243,589k (2020: £221,238k) of which £241,928k (2020: £219,069k) was restricted and £1,661k (2020: £2,169k) was unrestricted.

32

The Ormiston Trust for the year ended 31 August 2021 Notes to the financial statements

5. Funding for the group’s educational operations – Group (continued)

The group has been awarded capital funding by the Education & Skills Funding Agency to undertake significant capital projects across the Ormiston Academy network. Grant income has been recognised in full in respect of projects approved at the balance sheet date on the basis that the group bears the risk and reward of these contracts. Expenditure is capitalised within fixed assets in the course of construction. Grant income is recorded within the restricted fixed asset fund.

The charity has received no funding for educational operations in both the current and previous period.

6. Expenditure

Expenditure on raising funds costs Grants payable including allocated support costs Educational operations Direct costs Allocated support costs	Staff costs £’000 Premises costs £’000 21 68 86 43 160,907 54 39,735 32,132 200,749 32,297	Other £’000 705 825 20,659 12,901 35,090	2021 Total £’000 794 954 181,620 84,768 268,136	2020 Total £’000 927 273 171,387 78,879
				251,466

The method used for the apportionment of support costs is disclosed in the accounting policies.

The expenditure was £268,136k (2020: £251,466k) of which £4,585k was unrestricted (2020: £4,906k) and £263,551k was restricted (2020: £246,560k).

7. Raising funds

Academies’ expenses in relation to letting, catering and other activities Property/investment Management Fees Legal and Professional fees Property Repairs Loan interest and bank charges Wages and salaries Share of office costs including depreciation Bad debts	2021 £’000 243 137 26 68 226 21 35 38 794	2020 £’000 292 116 169 32 264 19 35 - 927

In 2020 and 2021, total expenditure on raising funds is in respect of unrestricted funds.

33

The Ormiston Trust for the year ended 31 August 2021 Notes to the financial statements

8. Analysis of Grants

Recipients of Institutional grants Ormiston Families Core funding Educational Ormiston Academies Trust Others Grants payable Support costs	2021 Group £’000 681 - 41 722 232 954	2021 Charity £’000 681 425 41 1,147 232 1,379	2020 Group £’000 47 - 3 50 223 273	2020 Charity £’000 47 240 3 290 223 513

During the year, the charity paid out £1,258k (2020: £1,024k) of grants, of which the majority had already been committed. Grants of £1,147k (2020: £290k) were committed in the year.

Support costs consist of operational costs such as professional fees and salaries in connection with subsidiary governance and grants. Ormiston Trust staff are actively involved with the recipients of grants in developing the grant ideas, proposals and applications and the subsequent in year and end of year monitoring of the projects.

9. Charitable activities

Allocated support costs Support staff costs Depreciation, amortisation and impairment of assets Premises costs Technology costs Other support costs Governance	2021 £’000 39,735 13,103 21,007 4,127 6,514 282 84,768	2020 £’000 37,068 13,209 19,049 2,252 7,050 251
		78,879

34

The Ormiston Trust for the year ended 31 August 2021 Notes to the financial statements

10. Net (expenditure)/income for the period includes:

Net (expenditure)/income for the period includes:
Operating leases PFI scheme Depreciation Amortisation Interest on bank and other loans Net interest on defined pension liability Fees payable to the Statutory Auditor and its associates in respect of both audit and non-audit services are as follows: Audit services – statutory audit of parent charitable company and consolidated accounts Other services: Audit – statutory audit of the subsidiary companies Other assurance All other non-audit services	2021 £’000 1,256 1,644 13,135 22 226 2,086 19 60 24 36 139	2020 £’000 1,224 1,569 13,276 5 274 2,009
		19 72 27 22
		140

11. Trustees’ remuneration and expenses

No trustee received any remuneration for their duties as a trustee, however the group did pay for services arising from the normal operations of the group in which a trustee has an interest as detailed in note 32. During the year ended 31 August 2021, travel and subsistence expenses totalling £649 (2020: £805) where reimbursed to 1 (2020: 1) trustee. During the year, the group purchased trustees’ liability insurance at a cost of £1,336 (2020: £1,055).

12. Staff costs

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

Teachers Administration and support Management	2021 Group No 2,916 1,532 311 4,759	As restated 2021 Charity No 2020 Group No - 2,828 2 1,510 1 306 3 4,644	2020 Charity No - 2 1 3

The Group's prior year staff numbers have been restated.

35

The Ormiston Trust for the year ended 31 August 2021 Notes to the financial statements

12. Staff costs (continued)

2021 Group £’000 Staff costs comprise Wages and salaries 142,605 Social security costs 13,564 Other pension costs 40,988 197,157 Supply teacher costs 3,412 Staff restructuring costs 180 200,749	2021 Charity £’000 2020 Group £’000 92 133,141 10 12,722 5 37,046 107 182,909 - 3,491 - 292 107 186,692	2020 Charity £’000 116 6 2 124 - - 124

174 (2020: 158) employees earned more than £60,000 per annum (including taxable benefits but excluding employers’ pension contributions) during the period ended 31 August 2021. The total emoluments of these employees were in the following ranges:

	2021	2020
	No	No
£60,001 - £70,000	87	83
£70,001 - £80,000	36	24
£80,001 - £90,000	18	18
£90,001 - £100,000	5	6
£100,001 - £110,000	7	9
£110,001 - £120,000	12	8
£120,001 - £130,000	4	6
£130,001 - £140,000	1	1
£140,001 - £150,000	2	2
£150,001 - £160,000	1	-
£200,001 - £210,000	-	1
£210,001 - £220,000	1	-

Key management personnel remuneration during the year which includes senior management of subsidiary undertakings amounted to £2,916k (2020: £2,889k) for the group and £80k (2020: £66k) for the charity.

13. Subsidiary undertakings

As detailed in note 1, the charity has a number of subsidiaries. Full details of the results of those undertakings are available by contacting the charity at the business address on page 2 of the Annual Report. A summary of the financial statements for the period incorporated with the consolidated accounts is shown below.

36

The Ormiston Trust for the year ended 31 August 2021 Notes to the financial statements

13. Subsidiary undertakings (continued)

				Birmingham
				Ormiston
	Gateway	Birmingham	Ormiston	Academy
	Learning	Ormiston	Academies	Theatre
	Community	Academy	Trust	Limited
Company Nos	(05853746)	(06832416)	(06982127)	(09160896)
	£’000	£’000	£’000	£’000
Income	19,334	6,092	230,483	385
Expenditure	(20,798)	(6,554)	(238,930)	(349)
Net
(expenditure)/Income	(1,464)	(462)	(8,447)	36
Actuarial (losses)	(1,341)	(349)	(21,750)	-
Net movement in
funds for the period	(2,805)	(811)	(30,197)	36
Assets	49,534	19,080	492,303	208
Liabilities (excluding
pension scheme
liability)	(1,395)	(411)	(19,996)	(158)
Provisions	-	-	(1,567)	-
Pension scheme
liability	(18,172)	(2,838)	(144,942)	-
Funds as at
31 August 2021	29,967	15,831	325,798	50

Registered offices of the subsidiary undertakings are as follows:

Gateway Learning Community – Marshfoot Road, Grays, Essex, RM16 4LU.

Birmingham Ormiston Academy and Birmingham Ormiston Academy Theatre Limited - 1 Grosvenor Street, Birmingham, B4 7QD.

Ormiston Academies Trust – 1 Victoria Square, Birmingham, B1 1BD.

37

The Ormiston Trust for the year ended 31 August 2021 Notes to the financial statements

14. Intangible Fixed Assets – Group

Intangible Fixed Assets – Group
	Computer
	Software
	£’000
Cost
At 1 September 2020	79
Additions	11
Transfers	167
At 31 August 2021	257
Amortisation
At 1 September 2020	63
Charge for the year	22
At 31 August 2021	85
Net book value
At 31 August 2021	172
At 31 August 2020	16

The amortisation of computer software assets is included within charitable activities expenditure.

15. Tangible fixed assets

Group Land and buildings £’000 Assets in the course of con- struction £’000 Furniture and equipment £’000 Computer equipment £’000 Motor vehicles £’000 Cost or valuation At 1 September 2020 585,226 62 7,926 10,243 370 Additions 1,547 381 695 3,584 25 Disposals (2,507) - (277) (2,675) (71) Transfers - (150) (17) - - At 31 August 2021 584,266 293 8,327 11,152 324 Depreciation At 1 September 2020 72,204 - 5,409 8,206 325 Charge for the year 11,497 - 465 1,155 18 Disposals (2,507) - (277) (2,675) (71) At 31 August 2021 81,194 - 5,597 6,686 272 Net book value At 31 August 2021 503,072 293 2,730 4,466 52 At 31 August 2020 513,022 62 2,517 2,037 45

Total £’000 603,827 6,232 (5,530) (167) 604,362 86,144 13,135 (5,530) 93,749 510,613 517,683

38

The Ormiston Trust for the year ended 31 August 2021 Notes to the financial statements

15. Tangible fixed assets (continued)

Included in the land and buildings above is freehold land and buildings with a net book value at 31 August 2021 of £87,065k (2020: £88,975k) and long leasehold land and buildings with a net book value at 31 August 2021 of £416,007k (2020: £424,047k).

The long leasehold properties are leased from the local councils of the individual academies, relating to the land and buildings of the trust and are leased from periods of up to 125 years for peppercorn rent. No such charges have been made in the current year (2020: £nil)

At the year end there were capital commitments contracted for, but not provided within the accounts of £218k (2020: £47k).

Charity Freehold buildings £’000 Furniture and equipment £’000 Computer equipment £’000 Cost or valuation At 1 September 2020 and 31 August 2021 225 1 9 Depreciation At 1 September 2020 - 1 9 Charge - - - At 31 August 2021 - 1 9 Net book value At 31 August 2021 225 - - At 31 August 2020 225 - -	Total £’000 235 10 - 10 225 225

The charity’s freehold property was revalued by Mr P Murray of James Duncan and Co, Chartered Surveyors as at 31 August 2021, on the basis of the open market value for existing use of the properties. Mr P Murray is a trustee of the charity. The original cost of the property was £208,000.

16. Fixed assets investments – Group and Charity

Valuation At 1 September 2020 Additions Disposals Fair value adjustment Movement in cash At 31 August 2021	Cash £’000 Quoted investments £’000 Leasehold properties £’000 Freehold properties £’000 1,994 10,908 350 26,180 - 6,233 - - - (5,750) - (485) - 2,117 (25) 2,135 (507) - - - 1,487 13,508 325 27,830	Total £’000 39,432 6,233 (6,235) 4,227 (507) 43,150

The investment properties in Ormiston Trust were revalued by Mr P Murray of James Duncan and Co, Chartered Surveyors as at 31 August 2021, on the basis of the open market value for existing use of the properties. Mr P Murray is a trustee of the charity. The quoted investments value was determined by market value of the investments.

There were no investments within quoted investments (or linked to quoted investments) held at 31 August 2021 which are over 5% of portfolio by value.

39

The Ormiston Trust for the year ended 31 August 2021 Notes to the financial statements

17. Stocks

2021 Group £’000 Goods for resale and supplies 359 18. Debtors 2021 Group £’000 Trade debtors 480 Other debtors 592 Prepayments and accrued income 6,556 Recoverable VAT 1,604 9,232 19. Creditors: amounts falling due within one year 2021 Group £’000 Trade creditors 748 Taxation and social security 3,739 Other creditors 3,454 Accruals and deferred income 11,224 Grants payable 262 Loan from ESFA 675 Salix loan 158 20,260 Deferred income 2021 Group £’000 Deferred income at 1 September 2020 2,067 Resources released from previous years (2,067) Resources deferred in the year 2,316 Deferred income at 31 August 2021 2,316	2021 Charity £’000 - 2021 Charity £’000 100 - 995 - 1,095 2021 Charity £’000 5 76 - 253 656 - - 990 2021 Charity £’000 165 (165) 163 163	2020 Group £’000 402 2020 Group £’000 682 56 6,583 1,466 8,787 2020 Group £’000 3,263 3,304 3,068 7,931 - 458 158 18,182 2020 Group £’000 2,501 (2,501) 2,067 2,067	2020 Charity £’000 - 2020 Charity £’000 424 - 263 - 687 2020 Charity £’000 3 38 - 267 657 - - 965 2020 Charity £’000 160 (160) 165 165

Deferred income relates to performance related grants and trip income received in advance specifically for future periods.

40

The Ormiston Trust for the year ended 31 August 2021 Notes to the financial statements

20. Creditors: amounts falling due after one year

Bank loans Loan from ESFA Salix loan Grants payable	2021 Group £’000 10,000 1,605 631 - 12,236	2021 Charity £’000 10,000 - - 498 10,498	2020 Group £’000 10,000 1,713 788 - 12,501	2020 Charity £’000 10,000 - - 608 10,608

Group

At the year end, the group had a Salix loan amounting to £789k (2020: £946k). The loan terms are for 9 years at an interest rate of 0%.

At the year end, the group owed the ESFA £320k (2020: £320k) with agreed payment terms of 4 years at interest rates of 0%. With respect to a further loan the group had with the ESFA, at the year end the group owed £1,300k (2020: £1,400k) with agreed payment terms of 9 years at interest rate of 0%. Also a loan with the ESFA, at year end the group owed £380k (2020: £451k) with agreed payment terms of 9 years at interest rate of 1.83%, this was following a further draw down of £nil (2020: £42k) in the year. The group also received a further loan in the year and at the year end the group owed the ESFA £280k (2020: £nil) with agreed payment terms of 10 years at interest rate of 0%.

Group and Charity

At the year end, the group has bank loans which entirely relate to the charity of £10,000k (2020: £10,000k) of which £5,000k is due for repayment at the end of the 5-year loan term and the other £5,000k is repayable by instalment over a 20-year term starting in April 2023. Interest on the bank loans is at a rate of 2% and 2.3% above base rate which is payable quarterly. The loan is secured against investment properties held by the charity.

secured against investment properties held by the charity.
Loan maturity Debt due in one year or less Due in more than one year but not more than two years Due in more than two years but not more than five years Due in more than five years	2021 £’000 833 568 7,153 4,515 13,069	2020 £’000 616 513 7,079 4,909
		13,117

21. Provisions for liabilities

The provision at 31 August 2021 amounting to £1,567k (2020: £579k), related to an enhanced pension provision relating to the cost of staff who have already left the Group’s employment. The provision has been recalculated in accordance with guidance issued by the funding bodies. During the year, an additional provision of £988k was recognised.

The principal assumption for this calculation is using a discount rate of 1.60% (2020: 1.30%) and price inflation of 2.60% (2020: 2.20%).

41

The Ormiston Trust for the year ended 31 August 2021 Notes to the financial statements

22. Grant commitments

Grant commitments at 31 August 2020 New commitments charged to the SOFA (see note 8) Grants paid during the year	2021 Group £’000 - 722 (460) 262	2021 Charity £’000 1,265 1,147 (1,258) 1,154	2020 Group £’000 263 50 (313) -	2020 Charity £’000 1,999 290 (1,024) 1,265

During the year, the Charity paid out £1,258k (2020: £1,024k) of grants, of which the majority had already been committed. A further £1,147k (2020: £290k) of grants were committed in the year.

23. Endowment Funds – Group and Charity

				Gains,
	Balance at	Income	Expenditure	losses and	Balance at
	2020	£’000	£’000	transfers	2021
	£’000			£’000	£’000
Expendable endowment	24,015	-	-	3,062	27,077

Expendable endowment funds are invested to produce income for the group, the trustees have the power to convert all or part of this fund to income which can then be spent.

24. Restricted funds

Restricted funds
Group	At 1			Gains,
	September			losses and
	2020	Income	Expenditure	transfers	2021
	£’000	£’000	£’000	£’000	£’000
Restricted general funds
General Annual Grant
(GAG)	2,567	198,982	(191,561)	(1,666)	8,322
Other government / private
sector grants	1,079	39,721	(38,202)	-	2,598
Other restricted funds	1,646	4,766	(4,789)	426	2,049
Restricted pension reserve	(130,244)	-	(12,268)	(23,440)	(165,952)
Restricted fixed asset funds	523,896	9,776	(16,731)	2,030	518,971
	398,944	253,245	(263,551)	(22,650)	365,988
Charity	At 1			Gains,
	September			losses and
	2020	Income	Expenditure	transfers	2021
	£’000	£’000	£’000	£’000	£’000
Other restricted funds	-	995	-	-	995

42

The Ormiston Trust for the year ended 31 August 2021 Notes to the financial statements

24. Restricted funds (continued)

Group

Restricted general funds

These grants relate to educational activities of the group.

Restricted pension reserve

The pension reserve relates to the group’s share of various Local Government Pension Scheme funds.

Restricted fixed asset funds

These grants relate to funding received form the DFE, ESFA and private sponsors to carry out works of a capital nature. This fund also includes inherited assets.

Gains, losses and transfers

The £23,440k pension actuarial loss is the only restricted gain/losses during the year.

Transfers are made from revenue funds (either unrestricted funds or restricted general funds) into restricted fixed asset funds where fixed assets are purchased using revenue funds.

Charity

The other restricted fund is a grant received from the National Lottery Community Fund to support social action project delivery engaging over 10,000 students in more than 100 schools that will benefit the students involved, their schools and their communities.

25. Unrestricted funds

Group At 1 September 2020 £’000 General funds 10,698 Charity At 1 September 2020 £’000 General funds 6,222	Income £’000 Expenditure £’000 Gains, losses and transfers £’000 5,671 (4,585) 375 Income £’000 Expenditure £’000 Gains, losses and transfers £’000 2,083 (1,930) 1,165	At 31 August 2021 £’000 12,159 At 31 August 2021 £’000 7,540

Unrestricted funds include a revaluation reserve of £20,000 which arose on the revaluation of the trust’s freehold property.

43

The Ormiston Trust for the year ended 31 August 2021 Notes to the financial statements

26. Analysis of net assets between funds

Group

Fund balances at 31 August 2021 are represented by:

Unrestricted funds £’000 Endowment fund £’000 Investments 16,073 27,077 Intangible fixed assets - - Tangible fixed assets 225 - Current assets 6,457 - Current liabilities (596) - Long term liabilities (10,000) - Provisions - - Pension reserve - - 12,159 27,077	Restricted general funds £’000 Restricted fixed asset funds £’000 - - - 172 - 510,388 36,436 8,411 (19,664) - (2,236) - (1,567) - (165,952) - (152,983) 518,971	Total £’000 43,150 172 510,613 51,304 (20,260) (12,236) (1,567) (165,952) 405,224

Fund balances at 31 August 2020 are represented by:

Unrestricted funds £’000 Endowment fund £’000 Investments 15,417 24,015 Intangible fixed assets - - Tangible fixed assets 225 - Current assets 5,364 - Current liabilities (308) - Long term liabilities (10,000) - Provisions - - Pension reserve - - 10,698 24,015	Restricted general funds £’000 Restricted fixed asset funds £’000 - - - 16 - 517,458 26,246 6,422 (17,874) - (2,501) - (579) - (130,244) - (124,952) 523,896	Total £’000 39,432 16 517,683 38,032 (18,182) (12,501) (579) (130,244) 433,657

Charity

Fund balances at 31 August 2021 are represented by:

Endowment funds £’000 Investments 27,077 Tangible fixed assets - Current assets - Current liabilities - Long term liabilities - 27,077	Restricted funds £’000 Unrestricted fund £’000 - 16,073 - 225 995 2,730 - (990) - (10,498) 995 7,540	Total £’000 43,150 225 3,725 (990) (10,498) 35,612

44

The Ormiston Trust for the year ended 31 August 2021 Notes to the financial statements

26. Analysis of net assets between funds (continued)

Charity (continued)

Fund balances at 31 August 2020 are represented by:

Endowment funds £’000 Unrestricted fund £’000 Investments 24,015 15,417 Tangible fixed assets - 225 Current assets - 2,153 Current liabilities - (965) Long term liabilities - (10,608) 24,015 6,222	Total £’000 39,432 225 2,153 (965) (10,608) 30,237

27. Contingent liabilities

There were no contingent liabilities at 31 August 2021 or 31 August 2020.

28. Operating leases

At 31 August 2021 the total of the group’s future lease payments under non-cancellable operating leases was:

Group Operating leases which will expire: Amounts due within one year Amounts due between one to five years Amounts due after five years	2021 £’000 1,080 1,744 1,389 4,213	2020 £’000 990 1,453 964 3,407

The group is also party to a facilities management contract under a PFI scheme. Total commitments under the contract are £1,679k (2020: £1,596k) within one year, £6,091k (2020: £6,387k) between one and five years and £11,027k (2020: £11,721k) in greater than five years.

29. Pension commitments

Defined Contribution

The group operates a defined contribution scheme on behalf of the charity. The assets of the scheme are held separately from those of the group and charity in an independently administered fund. The charge to the Statement of Financial Activities for the year was £5k (2020: £2k).

Defined Benefit

The group operates two principal defined benefit pension schemes in connection with its academy subsidiaries, the Teacher’s Pension Scheme England and Wales (TPS) for academic and related staff, and the Local Government Pension Scheme (LGPS) for non-teaching staff, which are managed by the relevant local authorities. Each Local Authority runs a separate pension fund. Both are multi-employer defined benefit schemes.

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

Contributions amounting to £3,178k (2020: £2,948k) were payable to the Schemes at 31 August 2021 and included within creditors.

45

The Ormiston Trust for the year ended 31 August 2021 Notes to the financial statements

29. Pension commitments (continued)

Teachers’ Pension Scheme

Introduction

The Teachers’ Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teacher’s Pensions Scheme Regulations 2014. Membership is automatic for teachers in academies. All teachers have the option to opt-out of the TPS following enrolment. The TPS is an unfunded scheme and members contribute on a ‘pay as you go’ basis – these contributions along with those made by employers are credited to the Exchequer. The Group has accounted for its contributions to the scheme as if it were a defined contribution scheme.

The Group has set out below the information available on the scheme

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 latest actuarial valuation of the TPS was carried out as at 31 March 2016.

The valuation report was published by the Department for Education on 5 March 2019. The key results of the valuation and subsequent consultation are:

• total scheme liabilities for service (pensions currently payable and the estimated cost of future benefits) of £218 billion

• value of notional assets (estimated future contributions together with the proceeds from the notional investments held at the valuation date) of £196 billion

• notional past service deficit of £22 billion

• discount rate is 2.4% in excess of CPI

As a result of the valuation, new employer contribution rates were set at 23.68% (including a 0.08% administration levy) of pensionable pay from September 2019 onwards (compared to 16.48% prior to September 2019.) The next valuation is due to be implemented from 1 April 2023.

The employer’s pension costs paid to TPS in the period amounted to £22,097k (2020: £20,007k). The TPS is a multi-employer pension plan and there is insufficient information to account for the scheme as a defined benefit plan so it is accounted for as a defined contribution plan.

Local Government Pension

The group is a member of the Cambridgeshire, Cheshire, Norfolk, Isle of Wight Council, Suffolk, West Midlands, Staffordshire, Derbyshire, East Riding, Essex, West Sussex County Council and Worcestershire Local Government Pension Schemes.

The LGPS is a funded defined benefit scheme, with assets held in separate trustee administered funds. The total contribution made for the year ended 31 August 2021 was £11,522k (2020: £10,840k), of which employer’s contributions totalled £9,024k (2020: £8,495k) and employees’ contributions totalled £2,498k (2020: £2,345k). The agreed contribution rates for future years are 12.2% – 26.2% for employers and 5.5 – 12.5% for employees.

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

46

The Ormiston Trust for the year ended 31 August 2021 Notes to the financial statements

29. Pension commitments (continued)

Local Government Pension (continued)

Principal actuarial assumptions:

The following information is based upon a full actuarial valuation of the funds at 31 March 2019 updated to 31 August 2021 by a qualified independent actuary

					Rate	of
	Discount				increase for
	rate	for	Rate	of	pensions in
	scheme		increase in		payment /
	liabilities		salaries		inflation
	2021	2020	2021	2020	2021	2020
	%	%	%	%	%	%
Cambridge Local Government Pension	1.7	1.7	3.4	2.7	2.9	2.2
Scheme
Cheshire Local Government Pension Scheme	1.7	1.7	3.6	2.9	2.9	2.2
Norfolk Local Government Pension Scheme	1.7	1.7	3.6	2.9	2.9	2.2
Isle of Wright Local Government Pension	1.7	1.7	3.7	3.0	2.9	2.2
Scheme
Suffolk Local Government Pension Scheme	1.7	1.7	3.6	2.9	2.9	2.2
West Midlands Local Government Pension	1.7	1.6	3.9	3.3	2.9	2.3
Scheme
Staffordshire Local Government Pension	1.7	1.7	3.3	2.6	2.9	2.2
Scheme
Derbyshire Local Government Pension	1.7	1.7	3.6	2.9	2.9	2.2
Scheme
East Riding Local Government Pension	1.7	1.7	3.8	3.1	2.9	2.2
Scheme
Essex Local Government Pension Scheme	1.7	1.6	3.9	3.3	2.9	2.3
West Sussex Local Government Pension	1.7	1.7	3.4	2.7	2.9	2.2
Scheme
Worcestershire Local Government Pension	1.7	1.7	4.2	3.9	2.8	2.5
Scheme

Mortality

The assumed life expectations are:

Mortality The assumed life expectations are:
	Males		Females
		Retiring		Retiring
	Retiring	in 20	Retiring	in 20
	today	years	today	years
	2021	2021	2021	2021
Cambridge Local Government Pension Scheme	22.2	23.2	24.4	26.2
Cheshire Local Government Pension Scheme	21.4	22.4	24.0	25.7
Norfolk Local Government Pension Scheme	21.9	23.2	24.3	26.2
Isle of Wight Local Government Pension Scheme	21.9	22.9	24.2	25.9
Suffolk Local Government Pension Scheme	22.1	23.2	24.5	26.4
West Midlands Local Government Pension Scheme	21.6	23.6	24.1	25.8
Staffordshire Local Government Pension Scheme	21.4	22.5	24.0	25.7
Derbyshire Local Government Pension Scheme	21.3	22.5	23.9	25.8
East Riding Local Government Pension Scheme	21.0	22.2	23.7	25.5
Essex Local Government Pension Scheme	21.8	23.1	23.7	25.2
West Sussex Local Government Pension Scheme	22.1	23.1	24.4	26.1
Worcestershire Local Government Pension Scheme	22.6	24.2	22.7	24.4

47

The Ormiston Trust for the year ended 31 August 2021 Notes to the financial statements

29. Pension commitments (continued)

Local Government Pension (continued)

Amounts recognised in the balance sheet

Amounts recognised in the balance sheet
	2021	2020
	£’000	£’000
Present value of funded obligations	(334,190)	(264,325)
Fair value of scheme assets	168,238	134,081
Net liability	(165,952)	(130,244)
Amounts recognised in the statement of financial activities
	2021	2020
	£’000	£’000
Current service cost	19,190	17,268
Past service cost	9	1,079
Net interest cost	2,086	2,009
Admin costs	7	9
Total	21,292	20,365
Movements in the present value of defined benefit obligations were	as follows:
	2021	2020
	£’000	£’000
Liabilities brought forward	264,325	224,022
Obligations acquired on conversion/transfer	-	4,099
Current service cost	19,190	17,268
Past service cost	9	1,079
Interest cost	4,354	4,313
Contributions by employees	2,498	2,345
Actuarial losses	46,395	14,387
Benefits paid	(2,581)	(3,188)
Liabilities carried forward	334,190	264,325
Movements in the fair value of group’s share of scheme assets:
	2021	2020
	£’000	£’000
Fair value of scheme assets brought forward	134,081	120,761
Assets acquired on conversion/transfer	-	1,438
Interest income	2,268	2,304
Return on plan assets	22,955	1,935
Contributions by employer	9,024	8,495
Contributions by employees	2,498	2,345
Admin expenses	(7)	(9)
Benefits paid	(2,581)	(3,188)
Fair value of scheme assets carried forward	168,238	134,081

48

The Ormiston Trust for the year ended 31 August 2021 Notes to the financial statements

29. Pension commitments (continued)

Local Government Pension (continued)

The major categories of scheme assets are as follows:

	2021	2020
	£’000	£’000
Equities	103,156	77,899
Bonds	34,420	28,214
Property	14,115	12,093
Cash and other	16,547	15,875
Total fair value of assets	168,238	134,081

The actual return on scheme assets was £25,223,000 (2020: £5,153,000).

30. Financial instruments

The following financial instruments measured at fair value through statement of financial activities at 31 August:

Carrying amount of financial assets Financial assets measured at fair value through statement of financial activities	2021 Group £’000 43,150	2021 Charity £’000 43,150	2020 Group £’000 39,432	2020 Charity £’000 39,432

31. Agency arrangements

The Group distributes 16 - 19 bursary funds to students as agent for the ESFA. In the accounting period ended 31 August 2021, the Group received £350k (2020: £346k) and disbursed £295k (2020: £309k) from the fund. At the year, the balance not yet disbursed was £51k (2020: £39k).

32. Related party transactions

Group

During the year, the group carried out transactions with the following related parties:-

			Amount in
			the period
Name of related party	Relationship	Services provided	£’000
2021
James Murray	P Murray’s Son	Employed by the charity	80
James Duncan and Co	Controlled by P Murray	Professional fees	10
Ormiston Families	P Murray a trustee	Grants given	421
2020
James Murray	P Murray’s Son	Employed by the charity	57
James Duncan and Co	Controlled by P Murray	Professional fees	10
Ormiston Families	P Murray a trustee	Grants given	68

At the year end, the group still owed £nil (2020: £16k) to Ormiston Families.

49

The Ormiston Trust for the year ended 31 August 2021 Notes to the financial statements

32. Related party transactions (continued)

Charity

During the year, the trust made grant commitments to subsidiary undertakings of £334k (2020: £346k) and paid commitments of £798k (2020: £712k). Amounts due to the subsidiary undertakings in respect of grant commitments by the trust at 31 August 2021 was £893k (2020: £1,371k).

33. Reconciliation of (expenditure)/income to net cash flow from operating activities

Net (expenditure)/income for the reporting period (as per the statement of financial activities) Adjusted for: Net surplus on conversion/transfer to Academy Capital grants DFE and ESFA Donated fixed assets Net gains on investments Rent income, interest and dividends from investments Interest payable Depreciation and amortisation Defined benefit pension scheme adjustment Increase in provisions Decrease in stocks Increase in debtors Increase/(decrease) in creditors Stocks, debtors and creditors transferred on transfer to Academy Net cash provided by/(used in) operating activities	2021 £’000 (4,993) - (7,226) - (4,227) (2,048) 226 13,157 12,268 988 43 (445) 1,861 - 9,604	2020 £’000 24,947 (24,197) (7,545) (16,171) (933) (2,614) 274 13,281 11,870 579 5 (1,227) (183) (201) (2,115)

34. Analysis of changes in net funds

1 September 2020 £’000 Cash 28,843 Loans falling due within one year (616) Loans falling due after more than one year (12,501) 15,726	Cash Flows £’000 12,870 (217) 265 12,918	31 August 2021 £’000 41,713 (833) (12,236) 28,644

35. Post balance sheet events

On 1 September 2021, certain academies within TBAP Multi-Academy Trust were transferred into the Ormiston Academies Trust. Certain assets and liabilities of the schools were transferred into the Trust at that date. Also on 1 September 2021 Birmingham Ormiston Academy Stage and Screen Production opened as an academy for 16-18 year olds.

50