## **The Ormiston Trust**
## **Annual Report comprising Trustees’ Report and Financial Statements**
**For the year ended 31 August 2023**
Company No. 09648958 Charity Registration No. 1164358
**The Ormiston Trust Trustees’ Report for the year ended 31 August 2023**
## **CONTENTS**
**PAGE** Trustees’ Report 2 – 17 Trustees’ Report, including strategic report Financial review 5 - 6 Reserves policy and investment policy 6 - 7 Principal risks and uncertainties 7 - 8 Achievements and performance 8 - 14 Plans for the future Streamlined energy and carbon reporting 15 – 16 s172 statement 17 Statement of trustees’ responsibilities 17 Independent Auditor’s Report 19 - 22 Consolidated Statement of Financial Activities 23 Consolidated Balance Sheet 24 Parent Charity Balance Sheet 25 Consolidated Statement of Cash Flows 26 Notes to the financial statements 27 – 56
1
**The Ormiston Trust Trustees’ Report for the year ended 31 August 2023**
The Board presents its report together with financial statements for the period from 1 September 2022 to 31 August 2023.
## **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 and principal office address of the trust is Suite 1 Windmill Oast, Benenden Road, Rolvenden, Cranbrook, Kent, England, TN17 4PF.
The trust is a general charitable trust, income or capital may be distributed at the trustees’ discretion.
The trust's main objective is the support of children and families which it achieves through the sponsorship of academy trusts and the provision of grants to organisations with similar objectives.
These accounts consolidate The 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 Peter Cornforth (appointed 10 October 2022) Nicola Kidston (appointed 19 September 2022)
Chief Executive: James Murray
## _**Auditors**_
RSM UK Audit LLP 10[th] Floor 103 Colmore Row Birmingham B3 3AG
## _**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
2
**The Ormiston Trust Trustees’ Report for the year ended 31 August 2023**
## _**Property Portfolio Manager**_
Kemsley LLP 113 New London Road Chelmsford Essex CM2 OQT
## _**Solicitors**_
Ashton KCJ 120 Princes Street, Ipswich Suffolk IP1 1RS
## **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 The Ormiston Trust. The charitable company is known as 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 and 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. 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 directors of the subsidiaries that it sponsors: The Gateway Learning Community, Birmingham Ormiston Academy, and Ormiston Academies Trust.
Each of the subsidiaries are independent charitable companies operating under a funding agreement with the Department for Education, with 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 subsidiary 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 and CEO, ensuring that the skills and experience of new trustees are complementary to those of existing board members.
3
**The Ormiston Trust Trustees’ Report for the year ended 31 August 2023**
## **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 briefings on charity, educational, legal and financial matters. All new trustees are encouraged 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. As a charitable group, trustees do not receive remuneration for their involvement.
## _**Objectives**_
The principal object of The Ormiston Trust is the support of children and their families. Vision
We are committed to increasing the life chances of young people in England.
Mission
We achieve this vision by providing strategic and operational advice, capacity, tools, and grants for supported organisations who share our vision and values.
Values
Four core values underpin the Ormiston Trust approach.
## **Value 1: Empower Value 2: Impact**
- We support people and organisations to • We strive for continuous improvement and to become more self-reliant. make the best use of resources.
- • We work with people and organisations in • We are not afraid to support innovative meaningful trusted partnerships. projects and to take risks.
## **Value 3: Care**
- We develop caring and supportive relationships and the development of the whole child.
- We listen to and respond to the views of our stakeholders and especially young people.
## **Values 4: Sustainability**
- We monitor our impacts as well as our outcomes and embed continuous learning.
- • We want our support to enabled sustained success.
4
**The Ormiston Trust Trustees’ Report for the year ended 31 August 2023**
## **Public benefit**
The trustees have confirmed that they have had regard to the Charity Commission's public benefit guidance 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 The Ormiston Trust as the operation of Multi Academy Trusts is a major part of the trust’s objectives.
However, The Ormiston Trust itself is primarily a grant making charity. It does not own its subsidiary entities, although it has the power to appoint and remove trustees to their board. The academies supported by The Ormiston Trust are separate bodies, financed mainly by public funding, to which The Ormiston Trust does not have access.
## _**Group**_
The group results reflect the performance of the trust and its sponsored academies, and the trustees consider the overall financial performance for the year to be satisfactory.
The group’s total income was £339 million (2022: £339 million) mainly from public sector funding for its subsidiary’s activities of educating and developing young people. The accounts show a surplus for the year of £42 million (2022: surplus of £208 million) which is after accounting for net assets acquired on the conversion of schools into the academy trusts of £nil (2022: £52 million), capital funding and donations of £44 million of which £32m is donated fixed assets (2022: £17 million) and the remeasurement of the group’s participation in local government pension schemes which resulted in a gain of £27 million (2022: £165 million gain).
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 £191k (2022: surplus of £4 million).
The group has net current assets of £38 million (2022: £37 million) which is represented largely by unrestricted funds and restricted general funds balances. This provides sufficient working capital for the group’s operations.
At the year end, the group had total funds of £654.8m (2022: £613.2m).
The support staff of the academy trusts are members of various local government pension schemes (LGPSs), in which there are 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. It should be noted that, due to the increase in the discount rate assumption this year, there has been a significant reduction in the overall pension liability at 31 August 2023.
## _**Charity – The Ormiston Trust**_
The Trust funds its grant making activities through the income generated from investments, primarily rental income together with additional external funding to support specific projects. The total income for the year is £1.9m (2022: £1.9m).
The Ormiston Trust made grant commitments of £1.0 million (2022: £2.9 million) during the year, some of which will be paid out over the next few years, and which are included within creditors as at the year end. The Trust recorded an unrestricted surplus before investment gains of £64k (2022: £855k deficit) and an unrestricted deficit of £56k after investment gains (2022: £818k surplus) which has been added to the Trust’s unrestricted fund with a balance carried forward of £8.3 million (2022: £8.4 million) at 31 August 2023.
5
**The Ormiston Trust Trustees’ Report for the year ended 31 August 2023**
## **Financial Review (continued)**
## _**Charity – The Ormiston Trust (continued)**_
The Ormiston Trust finance and investment committee, in partnership with external advisors, are continually seeking to reinvest these funds into various asset categories to provide a recurring income source to support its ongoing charitable activities, please see investment policy on page 29.
The Trust has a significant endowment fund of £30.5 million (2022: £31.0 million) which is invested in investment properties and generated investment losses of £542k (2022: £3,916k gain) in the year.
At the year end, the Trust had total funds of £38.8m (2022: £39.4m).
## _**Reserves Policy – Ormiston Trust**_
At 31 August 2023, the Ormiston Trust had total funds of £38.8 million (2022: £39.4 million) of which £30.5 million (2022: £31.0 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 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 2023 amounted to £8.1 million (2022: £8.1 million), which the trustees believe is sufficient given the trust’s foreseeable commitments.
At 31 August 2023, the Group had total funds of £654.8 million (2022: £613.2 million) of which £608.5 million (2022: £566.6 million) related to restricted funds and £30.5 million (2022: £31.0 million) related to endowment funds. The restricted funds and endowment funds are not available for the general purposes of the Group.
At 31 August 2023, the group held free reserves of £15.6 million (2022: £15.4 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 trust to another from time to time.
The restricted fixed asset fund includes £595m (2022: £577m) which includes land and buildings which cannot be disposed without the approval of Education and Skills Funding Agency (ESFA). 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 funds held by the academy trusts are public funds which can only be spent in accordance with objectives of the academy trust, within these they hold restricted funds these are shown in note 25 in line with guidance provided by the Education and Skills Funding Agency.
6
**The Ormiston Trust Trustees’ Report for the year ended 31 August 2023**
## _**Investment policy – The Ormiston Trust**_
The group's investment aim is as follows, recognising that investments are primarily held within The Ormiston Trust except for cash deposits held by some academy trusts.
- To achieve a stable long term income for the trust to enable a consistent stream of income to support young people 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 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 2023 amounted to £42.8m (2022: £43.6m).
## _**Principal risks and uncertainties**_
The trustees have assessed the major risks to which the trust is exposed, in particular those relating to 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 of each entity in the group 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**|
|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.|
|Further incidents of industrial strike action|Positive and open dialogue is maintained with
relevant education unions about strike action and pay
discussion. Where strikes occur, schools in the
networks are supported to adapt provision well in
advance to manage reduced staffing levels, school
closures and or remote learning if necessary.|
7
**The Ormiston Trust Trustees’ Report for the year ended 31 August 2023**
|**The Ormiston Trust**
**Trustees’ Report**
**for theyear ended 31 August 2023**||
|---|---|
|**Risk**|**Mitigation**|
|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|Annual budgets and longer term plans which are
recommended by their local governing body for
approval by the academy trust board. These 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.|
## _**Achievements and performance**_
## _**The Ormiston Trust**_ **Operation**
The Ormiston Trust is run by a team of dedicated staff and trustees to provide strategic and operational advice, capacity, tools, and grants for supported organisations who share our vision and values. The 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.
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 Group, by attending annual general meetings, meetings 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.
The 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.
The Ormiston Trust has further enhanced operational resilience and outcomes on young people over the last year. In particular it has:
- Added two new Directors to the Board (in Sept 2022) who have respectively experience working with young people, and in financial and property management.
- Invested a further £1m in schools and charities for programmes which amongst other things focus on young person’s employability skills, enrichment, agency, careers planning and wellbeing.
- Provided added value advice (i.e. fundraising, project planning, evaluation etc) for over 20 projects, and provided senior management and Directors in supported organisations with advice on a range of strategic and operational matters.
- Continued to manage a national youth social action programme and run best practice sharing and celebrations events, for young people.
8
**The Ormiston Trust Trustees’ Report for the year ended 31 August 2023**
## **Operation (continued)**
- Completed a large scale evaluation, with an independent evaluator, which showed the positive impacts of the national Youth Social Action programme, and produced free resources to help schools and communities introduce these programmes at further scale.
- Recruited 12 new young people to the Ormiston Trust Youth Advisory Council and engaged with them to increase our understanding of the needs of young people and sought their advice relating to our strategy and grant giving practices.
- Increased the profile of all organisations within the Ormiston Trust network (e.g. Ormiston Academies Trust, The Gateway Learning Community, and Birmingham Ormiston Academy Group etc) with targeted external communications, and brought the organisations together, to delivery Ormiston’s first network-wide collaboration.
Over the last 5 years, the Ormiston Trust has been increasingly focused on funding programmes at greater scale to increase positive outcomes. During this period the trust has supported and or funded over 200 individual schools and or projects that have supported directly or indirectly more than 80,000 young people, and families.
The Ormiston Trust is increasingly focused on funding fewer projects, whilst delivering with a greater scale and impact. During this period the trust has supported and or funded over 150 individual schools and or projects that have impacted more than 40,000 young people, and families. The grant summaries below outline some of the examples of our funded work.
## _**Grant funding impact – Academy network**_
The academies sponsored by the Ormiston Trust used our funding to run specific activities for students, their families, and surrounding communities. For example, The Ormiston Trust continues to fund or has funded the following projects below.
Expansion Ormiston Academies Trust (OAT) Cowes Maritime Futures £158,521
This project embeds industry learning into the mainstream Key stage 3. Students learn about maritime in history, geography, science and math and the knowledge they acquire finds practical application through Design Technology projects and presentations to professionals. Students routinely meet working mariners, get out on the water, access state-of-the-art industrial facilities and have curriculum lessons delivered by maritime experts. seventeen external and five OAT schools are involved with a total of 6,480 students benefitting.
## OAT Oracy and Debating £97,443
This project is targeted at improving oracy and debating skills across the trust. Teaching staff are provided with the resources and knowledge to deliver the programme and are supported by a trust wide support network. The aim is to embed these skills into lessons and recognise efforts through celebration and competition. Staff have successfully embedded debate and oracy within their curriculums. Geography A level at Bushfield, for example, obtained 50% A*-A grades and debate skills allowed them to reach the top marks. The project will include 10 oracy student champions being appointed in each school and the introduction of structured discussion into all subjects. Oracy training will also be developed in the Early Careers Training programme for trainee teachers.
## OAT Performs £18,566
This project involved creation of an arts and talent programme engaging 40 academies and over 150 students. Students benefitted from the experience of creating a piece to perform, film and submit. There was opportunity for students to gain experience in supporting roles such as videographer, editor, stage management, photographer, hair, makeup, and costume.
OAT Looked After Child (LAC) tutoring 22/23 £4,480
This project gave additional tutoring support to Looked After Children who may not benefit from parental input. 30 children benefitted from the extra tuition.
9
**The Ormiston Trust Trustees’ Report for the year ended 31 August 2023**
## _**Grant funding impact – Academy network (Continued)**_
Thomas Wolsey Music Therapy 22/23 £5,000
This music therapy project allowed a safe space where pupils from 3 – 16 year olds can express a range of thoughts, feelings and anxieties. Reasons for student referral onto this project included mental health support, bereavement support, support with trauma, transition support, developmental aims such as communication and interaction. The funding has allowed the continuing provision of music therapy two days per week, and over the last year, 32 pupils have directly benefitted from the sessions. A further 20-30 people have been supported by the therapist helping with music at funeral services and supporting young people around their bereavements.
## Shelfield Sings 21/23 £94,000
The project developed the musical and performance skills of pupils from Shelfield and 4 Primary feeders and enabled the most disadvantaged students to benefit from 1-2-1 music tuition. Teachers were trained to continue an arts award programme thus developing stronger links with the primary schools. 377 children were entered for the arts award qualification exceeding expectations. An outdoor performance platform was built and ‘Shelfest’ music festival was held in the school grounds.
## Shelfield CARES 21/23 £64,423
This 3 year project developed the careers offer at Shelfield Ormiston Academy engaging over 500 students and 10 supported academies and schools. Stronger relationships have been forged between Shelfield local industry and educational institutions with the aim of increasing the number of students taking up apprenticeships. Funding covers the cost of running careers events including those for primary school children as they transition to senior school. The project also encompasses early intervention measures to prevent Young People Not in Education, Employment or Training (NEET). Current intended destination data for Y13 shows that 95.4% are intending to be in Education, Employment or Training post Shelfield
## BOA Theatre Manager Hire 22/23 £10,000
This core cost funding contributed to the costs of the Birmingham Ormiston Academy (BOA) Executive/Artistic Director responsible for managing the Old Rep Theatre. The new hire is working directly with the CEO and Board of Directors to set an artistic vision for the organisation and provide artistic leadership, oversee all aspects of programming, and maintain highest values and standards of service, performance, and management. The development of the Old Rep is aimed at transforming the venue as a theatre for young people, run by young people.
## _**Grant funding impact - Ormiston Families (registered charity No. 1015716)**_
Ormiston Families (OF) used The Ormiston Trust funding to deliver the delivery and capacity building projects below:
OF Small Steps 21/24 £150,000 (3 x £50k over 3 years)
With a huge unmet need for perinatal mental health support in the Cambridgeshire area, Ormiston Families delivered their Small Steps Together programme to help women at risk of experiencing postnatal depression and work with their families to achieve positive outcomes. The programme has supported 93 women directly and a total of 206 when counting additional beneficiaries.
10
**The Ormiston Trust Trustees’ Report for the year ended 31 August 2023**
## _**Grant funding impact - Ormiston Families (registered charity No. 1015716) (continued)**_
OF M Power - Peterborough and Fenland. 21/24 £250,000 over 3 years
Ormiston Families are using this grant to run centres that offer preventative programmes that provide one-to-one and non-time limited wellbeing services for women aimed at providing support to strengthen relationships and increase self-esteem. The programme supports mothers whose children have been removed into care and helps them to develop key life skills, improve emotional health and wellbeing, improve sexual and reproductive services, and address practical difficulties. People are referred via sexual health clinics/GPs, social services and occasionally self-referral. The service has been rolled out in Peterborough and 6 months in is already supporting 20 women.
## OF Stronger Together 22/23 £20,000
Ormiston Families are using this grant to run weekly support groups in various Fenland locations for families with young children with Special Educational Needs & Disabilities. Stronger Together has also incorporated a Sensory Toy Library service which offers a range of resources for children with additional needs.
OF Core Funding 22/23 £800,000
A grant to expand their central team and capacity in relation to youth engagement, monitoring, and fundraising posts.
## **#WeWill Youth Social Action (YSA)**
Between 2021 – 2023, the Trust ran an extensive youth social action programme across over 150 schools and communities in England previously referred to as #IWill in the original funding provided. An outline of achievements on this key programme is set out below.
## **Key aims and outcomes**
**Aim 1:** Young people would drive and determine action and staff would ensure young people were given the skills to succeed, and the chance to engage with other young people to share and develop practice across the country;
**Outcomes:** The majority of young people were given ownership for what youth social action occurred; All students received skills training; all students engaged in a minimum of 25 hours of YSA activities; and many students were given the opportunity to engage with other students in different parts of the country to develop project ideas.
**Aim 2:** We would expand at scale meaningful, high quality, social action practice within the Ormiston school networks by supporting and guiding the four core partners (the academy trusts and Ormiston Families) to utilise their existing infrastructure alongside new staff to enable high quality social action to occur;
**Outcomes:** 148 schools and over 12,500 students took part in YSA to help others in their school and communities. Young people were given ownership for what youth social action occurred; all students received employability skills training; all students engaged in a minimum of 25 hours of YSA activities; and many students were given the opportunity to engage with other students in different parts of the country to develop project ideas.
**Aim 3:** We would help those young people at risk of permanent exclusion, those hardest to reach or most disaffected by providing intensive support and the opportunity to find their confidence within a social action programme;
**Outcome:** The Ormiston networks Alternative Provision and Special Educational Needs and Disabilities (SEND) schools took part in bespoke YSA projects.
11
**The Ormiston Trust Trustees’ Report for the year ended 31 August 2023**
## **Key aims and outcomes (continued)**
**Aim 4:** We would enable schools outside of the Ormiston network to start up or scale up meaningful, high quality, social action. We wanted to have a significant positive impact on the wider education sector and create space for others to start up their own social action programmes;
**Outcomes:** 101 external non-Ormiston schools took part in YSA activities.
**Aim:** We would share our approach as widely as possible and encourage other schools, academies, and multi academies trusts (MATs) to replicate our approach by using a new extensive, education focused social action toolkit. By testing and refining a range of ambitious approaches across our network - approaches specific to the education sector - we believed we could create a compelling and practical social action resource. The resource was intended to make social action programme development and implementation as easy as possible for other schools.
**Outcome:** Extensive YSA teaching resources were developed, piloted, and revised for the education sector.
The students and teachers from the primary and secondary schools involved in the #WeWill programme took part in and delivered over 150 projects across 148 schools which focused on addressing issues regarding the environment, poverty, wellbeing, resilience, health and safety, community cohesion and inclusion and diversity.
Below is the number of schools, projects and students involved.
_Ormiston Academies Trust (OAT)_ Engaged a total of 92 schools in the delivery of #WeWill social action campaign; 42 of their own academies and 50 non-OAT schools collectively delivered 50 projects tailored around 9 #WeWill themed projects involving 8,647, student/pupils.
_Birmingham Ormiston Academies (BOA)_ Recruited over 109 Social Action Ambassadors to deliver 14 days of workshops to 15 primary schools reaching out to local children from ages 5 – 11. 1,800 Primary School children engaged in BOA’s #WEWILL Social Action Performing Arts Workshops and 47 young people attended ‘The BOA Super Action Saturday School’ (aged 3 - 16).
_Gateway Learning Community (GLC)_ Engaged 5 schools with 1,031 students taking part in projects across their community focusing on social action and making a difference in the community.
_Ormiston Families (OF)_ Trained 324 Well-Being ambassadors, working in 15 schools, delivering 17 Social Action projects across the Great Yarmouth community.
_Grants to schools outside the group: 700_ students participated in YSA projects across 21 schools.
## _**Ormiston Trust Youth Advisory Council and Committees**_
The Ormiston Trust’s Youth Advisory Council (YAC) has taken further significant steps towards creating a fully developed forum for young people to engage with and support our work. Currently 12 young advisors, aged 14 – 20 from within the Ormiston network and beyond, have been recruited and engaged every 6 weeks in various strategic discussions about our work and focus. Further additional sub committees to this main group meet to discuss specific workstreams that focus on our external communications branding, resource creation and grants.
## _**Academy trusts**_
The Ormiston Trust has an involvement with the academy trusts it sponsors through reviewing academy performance by attendance at boards, committees and other networks and forum 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.
12
**The Ormiston Trust Trustees’ Report for the year ended 31 August 2023**
## _**Ormiston Academies Trust**_
Ormiston Academies Trust (OAT) is an educational charity and one of the largest not-for-profit multiacademy trusts in England serving the needs of children nationally and within 18 local authorities. They are also one of the longest established trusts and have been sponsoring academies since incorporation in 2009.
As of 31 August 2023, the trust was made up of 43 academies, 32 secondary schools, 6 primary schools, 4 alternative provision schools and 1 special school.
The trust continued its sustained growth with student numbers increasing by 795 (2.7%) between autumn 2022 and autumn 2023. Over the five-year period, our student numbers have increased by 4,599 (15.6%) and our staff numbers grew by 372 (10.5%) with teacher numbers growing by 190 (10.0%).
The key aims of the Trust during the year ended 31 August 2023 are summarised below.
- Teach: They will teach all their pupils the knowledge and skills they are entitled to, and how to apply this in how they think and work.
- Develop: They will develop all their pupils socially and emotionally so that they can make good choices about education and life.
- Change: They will aim to understand what is needed for any pupil to excel, so they can create schools where no one is disadvantaged.
- Support: They will support this work by being efficient and by investing in getting the best from their people, resources, estate and technology.
OAT are passionate about making a difference by achieving more together – whether it be working collaboratively within OAT or in partnership with others. Of their 41 academies with current inspections since joining OAT, 34 (81%) are now judged to be good or outstanding, and 100% of our primaries, special and alternative provision schools reach this benchmark. Since joining OAT, 39 of our academies have maintained or improved their Ofsted judgement, with 54% improving.
For more detailed information please see the Ormiston Academies Trust accounts on the Companies House website or www.ormistonacademiestrust.co.uk.
## _**Birmingham Ormiston Academy Trust**_
Birmingham Ormiston Academy (“BOA”), sponsored by the Ormiston Trust and Birmingham City University, is a 14 to 19 academy group specialising in Creative, Digital and Performing Arts. There are three academies within the BOA Trust - BOA Performing Arts, BOA Stage and Screen and BOA Digital Technologies. The academies aim 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 2023 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.
- To transition into a Multi Academy Trust.
The academy trusts are one hundred percent selective based on aptitude within the specialism (rather than academic ability) and, as a result, is unique in its admissions.
**BOA Creative, Digital and Performing Arts** key stage 4 and 5 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.
13
**The Ormiston Trust Trustees’ Report for the year ended 31 August 2023**
## _**Birmingham Ormiston Academy Trust (Continued)**_
**BOA Stage and Screen** provides post 16 students an education focused around the technical arts. Working with the creative industries, students study a series of professional practice qualifications, building their skills to provide and test their technical support for those in the BOA Creative, Digital and Performing Arts academy and the shows at The Old Rep Theatre.
**BOA Digital Technologies** students in key stage 3, 4 and 5 access a creative and distinctive digital focused curriculum in a brand new, purpose-built academy. They aim to make learning interesting, relevant, and engaging. The achieve this by providing unrivalled opportunities for students to gain reallife industry experience, and through their creative teaching, a commitment to digital skills development, state of the art technologies, and a digital-led curriculum delivered in partnership with industry professionals.
All of their academies are good or outstanding.
For more detailed information please see the Birmingham Ormiston Academies group accounts on the Companies House website or at www.boa-academy.co.uk.
## _**The Gateway Learning Community**_
The Gateway Learning Community (“GLC”) opened as a Multi Academy Trust (“MAT”) in 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:
- High quality teaching that deliberately develops competencies of curiosity, creativity, communication and critical thinking.
- An inspiring and meaningful curriculum.
- The development of productive relationships by instilling the values of compassion, resilience, responsibility and aspiration to prepare their young people for learning and life.
- A commitment to the wellbeing of our staff.
- A culture of professional generosity, collaboration, challenge and support.
- The development of effective external partnerships for the benefit and wellbeing of their community.
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.
All of their academies are good or outstanding.
For more detailed information please see the Gateway Learning Community group accounts on the Companies House website or at www.theglc.org.uk.
## **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 including 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.
14
**The Ormiston Trust Trustees’ Report for the year ended 31 August 2023**
## **Plans for the future**
## **The Ormiston Trust**
The Ormiston Trust aims to make further progress implementing its three year strategic plan to provide outstanding support for its subsidiaries and supported organisations; provide more grants over longer periods; increase the emphasis on evaluating ‘what works’; increase the voice of young people in our decision making; and invest prudently in targeted assets classes to continue to generate income to pursue the trust’s goals. The Trust has plans to create a new 5 year strategy in the coming year.
## **Ormiston Academies Trust**
The strategy for 2024–29 will be developed during the spring and summer of 2024 ready for launch in September 2024. In the interim, the trust will focus on its’ core priorities of attendance, behaviour and brilliant learning opportunities inside and outside the classroom.
## **Birmingham Ormiston Academy Group**
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 receive special attention as the newly opened state-funded 11 to 18 academy.
## **The Gateway Learning Community**
In order to achieve the GLC Mission Statement, the group has agreed a 3-year strategic development plan. This plan sets out the global intentions for the GLC, with clear impact statements that will be tracked on a termly basis throughout the academic year. Each of the 5 GLC academies have agreed to play its part in achieving these intentions as well as focusing on additional, locally agreed, intentions. All intentions will be monitored each half term by the GLC head office function.
## **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.
## **Post Balance Sheet Events**
At Ormiston Academies Trust, on 1 September 2023 Ormiston Courtyard Academy amalgamated with Ormiston Bridge Academy.
## _**Streamlined energy and carbon reporting**_
## **UK greenhouse gas emissions and energy use data for the period 1 September 2022 to 31 August 2023**
The Ormiston Trust meets the definition of a ‘large’ consolidated group and therefore should apply the guidelines. However, as a stand-alone company the 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.
15
**The Ormiston Trust Trustees’ Report for the year ended 31 August 2023**
## _**Streamlined energy and carbon reporting (continued)**_
**UK greenhouse gas emissions and energy use data for the period 1 September 2022 to 31 August 2023 (Continued)**
||**2022–23**|**2021–22**|
|---|---|---|
|**Energy consumption used to calculate emissions [kWh]**|**42,468,604**|**39,452,541**|
|Gas [kWh]|26,039,131|25,050,345|
|Oil [kWh]|8,501|0|
|LPG [kWh]|15,363|220,699|
|Electricity [kWh]|0|0|
|Electricity renewables [kWh]|15,133,618|13,391,385|
|Transport fuel [kWh]|1,271,991|790,112|
|**Scope 1 emissions in metric tonnes CO2e **|**5,362.95**|**5,197.50**|
|Gas consumption|5,266.67|5,066.93|
|Oil consumption|2,42|0.00|
|LPG consumption|3.53|50.83|
|Owned transport – mini-buses|90.33|79.74|
|**Scope 2 emissions in metric tonnes CO2e **|**0.00**|**0.00**|
|Purchased electricity|0.00|0.00|
|Purchased electricity renewables|0.00|0.00|
|**Scope 3 emissions in metric tonnes CO2e **|**253.43**|**135.80**|
|Business travel in employee-owned vehicles [petrol/diesel]|253.43|135.80|
|Business travel in employee-owned vehicles [electric]|0|0.00|
|**Total gross emissions in metric tonnes CO2e **|**5,616.38**|**5,333.30**|
|**Total number of pupils within the trust**|**34,117.00**|**32,532.00**|
|**Intensity ratio – tonnes CO2e per pupil**|**0.16**|**0.16**|
## **Quantification and reporting methodology**
We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and the 2023 UK Government’s Conversion Factors for Company Reporting.
## **Intensity measurement**
The intensity measure we are using as a trust assessed the tonnes of CO2 emitted per pupil which is the recommended ratio for the sector.
## **Measures planned to improve energy efficiency**
- We have invested in LED lighting across the trust estate with the aim of reducing energy consumption.
- We are installing PV panels on the roof of the trust’s academies with the aim of reducing energy
- consumption.
- We have installed smart meters across all sites to improve our understanding of energy consumption.
Together, these improvements should result in an energy reduction of over 20%.
16
**The Ormiston Trust Trustees’ Report for the year ended 31 August 2023**
## **Section 172 statement**
This content includes content relevant to Engagement with suppliers, customers and others in a business relationship with the trust.
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.
The main expenditure across the group is in respect of employees and the culture, 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 and we have improved communication with staff in recent years, including placing 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.
17
**The Ormiston Trust Trustees’ Report for the year ended 31 August 2023**
## **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 2024 and signed on 20 May its behalf by:
P G Murray
S MacLeod
**Chair of Trustees**
**Trustee**
18
**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 2023 which comprise the Consolidated Statement of Financial Activities, the Parent Charity and Consolidated 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 2023 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.
19
**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 and sufficient 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 17, 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.
20
**The Ormiston Trust Independent Auditor’s Report to the members of The Ormiston Trust**
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:
- 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 group is in compliance with these law 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 and challenging judgments and estimates.
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.
21
**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 103 Colmore Row Birmingham West Midlands B3 3AG
> Date: 23 May 2024
22
## **The Ormiston Trust Consolidated Statement of Financial Activities (incorporating income and expenditure account) for the year ended 31 August 2023**
|**Note**
**Unrestricted**
**funds**
**£’000**
**Endowment**
**funds**
**£’000**
**Income and endowments from:**
Donations and grants
2
96
-
Donations – transfer into the group
-
-
Other trading activities
3
2,121
-
Investments
4
2,075
-
Charitable activities:
Academies educational
operations
5
3,070
-
**Total income**
7,362
-
**Expenditure on:**
Raising funds
7
967
-
Charitable activities
Academy educational
operations
4,804
-
Grant making
8
1,145
-
**Total expenditure**
6
6,916
-
Net (loss)/gains on Investments
16
(121)
(542)
**Net income/(expenditure)**
325
(542)
Gross transfers between funds
(134)
-
**Net income/(expenditure) before**
**other recognised gains and**
**losses**
191
(542)
**Other recognised gains and**
**losses:**
Actuarial gain on remeasurement
of defined benefit pension
schemes
30
-
-
**Net movement in funds**
191
(542)
**Total funds brought forward**
15,665
30,993
**Funds carried forward**
15,856
30,451|**Restricted**
**funds**
**£’000**
43,859
-
1,922
-
285,744
331,525
-
316,827
-
316,827
-
14,698
134
14,832
27,087
41,919
566,571
608,490|**2023**
**Total**
**£’000**
43,955
-
4,043
2,075
288,814
338,887
967
321,631
1,145
323,743
(663)
14,481
-
14,481
27,087
41,568
613,229
654,797|**2022**
**Total**
**£’000**
16,960
52,080
3,129
1,953
264,943
339,065
763
298,919
2,194
301,876
5,589
42,778
-
42,778
165,227
208,005
405,224
613,229|
|---|---|---|---|
23
**The Ormiston Trust Consolidated Balance Sheet as at 31 August 2023**
|**The Ormiston Trust**
**Consolidated Balance Sheet**|**The Ormiston Trust**
**Consolidated Balance Sheet**|
|---|---|
|**as at 31 August 2023**
**Company Number: 09648958**
**Notes**
**2023**
**£’000**
**2022**
**£’000**
**Fixed assets**
Intangible assets
14
151
203
Tangible assets
15
583,445
567,136
Investments
16
42,762
43,597
626,358
610,936
**Current assets**
Stock
17
382
383
Debtors
18
11,917
9,152
Investments
19
12,000
-
Cash at bank and in hand
40,744
52,488
65,043
62,023
**Creditors:**Amounts falling due within one year
20
(27,175)
(25,322)
Net current assets
37,868
36,701
**Total assets less current liabilities**
664,226
647,637
Creditors: Amounts falling due after one year
21
(5,964)
(6,522)
Provisions for liabilities
22
(1,096)
(1,273)
**Net assets excluding pension liability**
657,166
639,842
Defined benefit pension liability
30
(2,369)
(26,613)
**Total net assets**
654,797
613,229
**Funds**
Endowment funds
24
30,451
30,993
**Restricted funds**
Restricted fixed asset fund
25
594,520
576,737
Restricted general fund
25
16,339
16,447
Restricted pension reserve
25
(2,369)
(26,613)
**Total restricted funds**
608,490
566,571
**Unrestricted funds**
General funds
26
15,856
15,665
**Total funds**
654,797
613,229||
|**Notes**
**Fixed assets**
Intangible assets
14
Tangible assets
15
Investments
16
**Current assets**
Stock
17
Debtors
18
Investments
19
Cash at bank and in hand
**Creditors:**Amounts falling due within one year
20
Net current assets
**Total assets less current liabilities**
Creditors: Amounts falling due after one year
21
Provisions for liabilities
22
**Net assets excluding pension liability**
Defined benefit pension liability
30
**Total net assets**
**Funds**
Endowment funds
24
**Restricted funds**
Restricted fixed asset fund
25
Restricted general fund
25
Restricted pension reserve
25
**Total restricted funds**
**Unrestricted funds**
General funds
26
**Total funds**|**2023**
**£’000**
151
583,445
42,762
626,358
382
11,917
12,000
40,744
65,043
(27,175)
37,868
664,226
(5,964)
(1,096)
657,166
(2,369)
654,797
30,451
594,520
16,339
(2,369)
608,490
15,856
654,797|
The financial statements were approved by the board of trustees and authorised for issue on and 20/5/24 are signed on their behalf by:
_______________________ _______________________ P G Murray S MacLeod Chair of Trustees Trustee
24
**The Ormiston Trust Parent Charity Balance Sheet as at 31 August 2023**
**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
20
Net current assets
**Total assets less current liabilities**
**Creditors:**Amounts falling due after more than one year
21
**Net assets**
**Funds**
Endowment funds
24
Restricted funds
25
Unrestricted funds
26
**Total funds**|**2023**
**£’000**
226
42,762
42,988
172
1,869
2,041
(872)
1,169
44,157
(5,404)
38,753
30,451
-
8,302
38,753|**2022**
**£’000**
227
43,597
43,824
567
2,456
3,023
(2,028)
995
44,819
(5,468)
39,351
30,993
-
8,358
39,351|
|---|---|---|
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 deficit for the year was £598k (2022: surplus - £3,739k).
The financial statements were approved by the board of trustees and authorised for issue on and 20/5/24 are signed on their behalf by:
P G Murray Chair of Trustees
_______________________ S MacLeod Trustee
25
**The Ormiston Trust Consolidated Statement of Cash Flows for the year ended 31 August 2023**
|**Notes**
**Cash flows from operating activities**
**Net cash (used in)/provided by operating activities**
34
**Cash flows 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 tangible assets
Proceeds from sale of investments
Deposit of cash on fixed-term investment
**Net cash (used in)/provided by investing activities**
**Cash flows from financing activities**
Interest paid
Repayment of bank 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
35|**2023**
**£’000**
(8,465)
2,075
11,745
-
(4,355)
(13,953)
-
14,125
(12,000)
(2,363)
(320)
(30)
(408)
(158)
(916)
(11,744)
52,488
40,744|**2022**
**£’000**
6,068
1,953
7,467
(20)
(3,917)
(5,850)
7
10,992
-
10,632
(236)
(5,000)
(531)
(158)
(5,925)
10,775
41,713
52,488|
|---|---|---|
26
**The Ormiston Trust for the year ended 31 August 2023 Notes to the financial statements**
## **1. Accounting Policies**
The Ormiston Trust (“the trust or charity”) is a private company limited by guarantee and a registered charity 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 certain investments and investment properties 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)), the Charities Act 2011 and the Companies Act 2006. The Charity is a public benefit entity under FRS 102 and has therefore applied the relevant public benefit requirements of FRS 102.
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 challenging economic conditions continue to exist 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 and derives benefit through the activities of the academy trusts in support of its objectives.
## **Transfer into 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.
27
**The Ormiston Trust for the year ended 31 August 2023 Notes to the financial statements**
## **1. Accounting Policies (continued)**
## **Transfer into an academy trust (continued)**
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.
## **Income**
All income is 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.
28
**The Ormiston Trust for the year ended 31 August 2023 Notes to the financial statements**
## **1. Accounting Policies (continued)**
## **Expenditure (continued)**
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.
## **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 expendable 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.
Unrestricted funds represent those resources which may be used towards meeting the objectives of the group at 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 25.
## **Stock**
Stocks are valued at the lower of cost and net realisable value.
## **Investments**
Quoted Investments, Leasehold Investment Properties and Freehold Investment Properties are stated at their fair value at the Balance Sheet date. The quoted 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.
Current asset investments relate to cash held on short term deposit and are initially measured at cost and subsequently measured at cost less impairment.
## **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.
29
**The Ormiston Trust for the year ended 31 August 2023 Notes to the financial statements**
## **1. Accounting Policies (continued)**
## **Tangible fixed assets and depreciation (continued)**
Depreciation on the relevant assets is charged directly to the restricted fixed asset fund in the Statement of Financial Activities.
Where tangible fixed assets have been acquired with unrestricted funds, depreciation on such assets is charged to the unrestricted fund. Where tangible fixed assets 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.
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. Freehold land is not depreciated. The principal annual rates used on other assets are:
Freehold and long leasehold property 2% Long leasehold land 125 years Short leasehold buildings 20% Furniture and equipment 10%-25% Computer equipment 20%-33% 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. Impairment 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 and Sandwell local authorities 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:
Computer Software 20% straight line
## **Leased assets**
Rentals under operating leases are charged on a straight-line basis over the lease term.
Occasionally 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.
30
**The Ormiston Trust for the year ended 31 August 2023 Notes to the financial statements**
## **1. Accounting Policies (continued)**
## **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.
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.
31
**The Ormiston Trust for the year ended 31 August 2023 Notes to the financial statements**
## **1. Accounting Policies (continued)**
## **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.
## **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, and are contracted out of the State Earnings Relating Pension Scheme (“SERPS”). 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 credit 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 multi employer 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.
The LGPS assets are managed by the scheme trustees at scheme level, and the determination / allocation of assets to each individual employer in the scheme is managed by the scheme actuary. The assets are allocated to each employer for accounting purposes based on the valuation of the assets at the latest triennial valuation as adjusted for subsequent contributions received from the employer, asset returns and benefit payments made (either on a cash basis or actuarial basis).
The retirement benefit obligation recognised represents the deficit or surplus in the defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the plans.
32
**The Ormiston Trust for the year ended 31 August 2023 Notes to the financial statements**
## **1. Accounting Policies (continued)**
## **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**
Accounting estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
## Critical accounting estimates and assumptions
The 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.
## **Local Government Pension Scheme**
The present value of the Local Government Pension Scheme defined benefit liability shown in note 30 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 30, 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 2022 has been used by the actuaries in valuing the pensions liabilities at 31 August 2023. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of pension liabilities.
## **Enhanced pension provision**
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.
## **Useful economic lives of tangible assets**
The annual depreciation charge for the tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 14 for the carrying amount of the property plant and equipment and note 1 for the depreciation accounting policy.
33
**The Ormiston Trust for the year ended 31 August 2023 Notes to the financial statements**
## **1. Accounting Policies (continued)**
## **Critical accounting estimates and areas of judgement (continued)**
## **Property valuations**
When new schools join the Trust, the new school land and buildings are included at a valuation at the date of transfer. This valuation is then treated as deemed cost. Management have taken advice from professional valuers in determining the amounts at which those buildings are included in the financial statements.
## **Investments properties**
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**
## **Properties subject to PFI arrangements**
At three of its academies, the group, under supplementary agreements with the local authority, 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.
## **Local Government Pension Scheme**
Determining the existence of a minimum funding requirement for the Local Government Pension Scheme to including in the asset ceiling in measuring and recognising a surplus in the scheme. This judgement is based on an assessment of the nature of the scheme as a statutory scheme and is the inherent implied continuance and the operation of the primary and secondary contributions.
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
45
161
Capital grants
-
11,745
Donated fixed assets
-
31,936
Private sponsorship
51
17
96
43,859|**Total**
**2023**
**£’000**
**Total**
**2022**
**£’000**
206
326
11,745
7,467
31,936
9,055
68
112
43,955
16,960|
|---|---|
The income from donations and capital grants was £43,955k (2022: £16,960k) of which £96k unrestricted (2022: £289k), and £43,859k was restricted (2022: £16,671k).
34
**The Ormiston Trust for the year ended 31 August 2023 Notes to the financial statements**
## **3. Other trading activities**
|**Other trading activities**|||||
|---|---|---|---|---|
||**Unrestricted**|**Restricted**|**Total**|**Total**|
||**funds**|**funds**|**2023**|**2022**|
||**£’000**|**£’000**|**£’000**|**£’000**|
|Academies’ income relating to hire|||||
|of facilities, academy trips, catering|||||
|and other activities|2,121|1,922|4,043|3,129|
The income from other trading activities was £4,043k (2022: £3,129k) of which £2,121k was unrestricted (2022: £2,534k) and £1,922k was restricted (2022: £595k).
## **4. Investment income**
|Rental income
Bank interest
Dividends
|**2023**
**£’000**
1,636
261
178
2,075
|**2022**
**£’000**
1,632
111
210
1,953|
|---|---|---|
In 2023 and 2022, investment income was in respect of unrestricted funds.
## **5. Academies educational operations – Group**
|**Unrestricted**
**funds**
**£’000**
**Restricted**
**funds**
**£’000**
**Total**
**2023**
**£’000**
**DFE/ESFA grants**
General Annual Grants (GAG)
-
229,196
229,196
Other DFE/ESFA grants
-
28,739
28,739
Teaching school
-
2,165
2,165
-
260,100
260,100
Local authority grants
-
15,788
15,788
Other government grants
-
1,813
1,813
-
17,601
17,601
Coronavirus additional funding
-
5,221
5,221
Other incoming resources
3,070
2,822
5,892
**Total income**
3,070
285,744
288,814|**Total**
**2022**
**£’000**
218,758
20,309
1,956
241,023
12,572
2,332
14,904
4,309
4,707
264,943|
|---|---|
35
**The Ormiston Trust for the year ended 31 August 2023 Notes to the financial statements**
## **5. Academies educational operations – Group (continued)**
The income for educational operations was £288,814k (2022: £264,943k) of which £285,744k (2022: £261,614k) was restricted and £3,070k (2022: £3,329k) was unrestricted.
The charity has received no funding for educational operations in both the current and previous period.
## **6. Expenditure**
|**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**
35
61
196
-
187,003
303
40,164
50,215
227,398
50,579|**Other**
**£’000**
871
949
29,329
14,617
45,766|**2023**
**Total**
**£’000**
967
1,145
216,635
104,996
323,743|**2022**
**Total**
**£’000**
763
2,194
197,587
101,332|
|||||301,876|
The method used for the apportionment of support costs is disclosed in the accounting policies.
The expenditure was £323,743k (2022: £301,876k) of which £6,916k was unrestricted (2022: £6,301k) and £316,827k was restricted (2022: £295,575k).
## **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 in respect of investing activities
Wages and salaries
Overheads
|**2023**
**£’000**
253
113
124
61
315
34
67
967
|**2022**
**£’000**
147
134
158
15
230
35
44
763|
|---|---|---|
In 2023 and 2022, expenditure on raising funds is in respect of unrestricted funds.
36
**The Ormiston Trust for the year ended 31 August 2023 Notes to the financial statements**
## **8. Analysis of Grants**
|**Recipients of Institutional grants**
**Ormiston Families**
Core and project funding
**Educational**
Ormiston Academies Trust
#Wewill – Youth Social Action
BOA Trust
Others
Grants written back/refunded
Grants payable
Support costs|**2023**
**Group**
**£’000**
824
-
-
-
2
-
826
319
1,145|**2023**
**Charity**
**£’000**
824
180
-
10
4
(5)
1,013
319
1,332|**2022**
**Group**
**£’000**
904
-
1,006
-
3
(15)
1,898
296
2,194|**2022**
**Charity**
**£’000**
904
20
1,990
-
3
(35)
2,882
296
3,178|
|---|---|---|---|---|
The expenditure for the grants was £1,145k (2022: £2,194k) of which £nil (2022: £995k) was restricted and £1,145k (2022: £1,199k) was unrestricted.
During the year, the charity paid out £2,247k (2022: £1,807k) of grants, of which the majority had already been committed. Grants of £1,013k (2022: £2,882k) were committed net of grants written back/refunded 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 – Academy educational operations**
|**Charitable activities – Academy educational operations**|||
|---|---|---|
||**2023**|**2022**|
||**£’000**|**£’000**|
|**Allocated support costs**|||
|Support staff costs|40,164|50,099|
|Depreciation, amortisation and impairment of assets|19,728|14,047|
|Premises costs|32,130|23,578|
|Technology costs|4,818|4,252|
|Other support costs|7,784|9,059|
|Governance|372|297
|
||104,996|101,332|
37
**The Ormiston Trust for the year ended 31 August 2023 Notes to the financial statements**
## **10. Net income/(expenditure) for the period includes:**
|Operating leases
Contribution in respect of PFI arrangements
Depreciation
Amortisation
Loss on disposal of fixed assets
Impairment
Interest on bank and other loans in respect of investing activities
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|**2023**
**£’000**
1,612
1,819
15,175
52
34
4,773
320
1,132
22
76
30
66
194|**2022**
**£’000**
1,673
1,683
14,104
48
8
-
236
2,965|
|---|---|---|
|||21
66
26
59|
|||172|
## **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 33. During the year ended 31 August 2023, travel and subsistence expenses totalling £3,199 (2022: £1,284) was reimbursed to 2 (2022: 1) trustees. During the year, the group purchased trustees’ liability insurance at a cost of £1,055 (2022: £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|**2023**
**Group**
**No**
2,945
2,537
87
5,569|**2023**
**Charity**
**No**
**2022**
**Group**
**No**
**2022**
**Charity**
**No**
-
2,502
-
8
2,743
8
1
86
1
9
5,331
9|
|---|---|---|
38
**The Ormiston Trust for the year ended 31 August 2023 Notes to the financial statements**
## **12. Staff costs (continued)**
|**2023**
**Group**
**£’000**
**Staff costs comprise**
Wages and salaries
166,141
Social security costs
17,356
Other pension costs
37,242
220,739
Supply teacher costs
6,517
Staff restructuring costs
142
227,398|**2023**
**Charity**
**£’000**
**2022**
**Group**
**£’000**
205
152,072
17
16,170
9
49,970
231
218,212
-
4,356
-
293
231
222,861|**2022**
**Charity**
**£’000**
190
17
5
212
-
-
212|
|---|---|---|
284 (2022: 212) employees earned more than £60,000 per annum (including taxable benefits but excluding employers’ pension contributions) during the period ended 31 August 2023. The total emoluments of these employees were in the following ranges:
||**2023**|**2022**|
|---|---|---|
||**No**|**No**|
|£60,001 - £70,000|164|111|
|£70,001 - £80,000|48|47|
|£80,001 - £90,000|19|21|
|£90,001 - £100,000|20|7|
|£100,001 - £110,000|6|8|
|£110,001 - £120,000|12|5|
|£120,001 - £130,000|5|5|
|£130,001 - £140,000|4|3|
|£140,001 - £150,000|1|1|
|£150,001 - £160,000|2|1|
|£160,001 - £170,000|1|2|
|£210,001 - £220,000|2|1|
Key management personnel remuneration during the year which includes senior management of subsidiary undertakings amounted to £3,806k (2022: £3,138k) for the group and £69k (2022: £70k) for the charity.
39
**The Ormiston Trust for the year ended 31 August 2023 Notes to the financial statements**
## **13. Subsidiary undertakings**
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 within the consolidated accounts is shown below.
|
is shown below.|||||
|---|---|---|---|---|
|||||**Birmingham**|
|||||**Ormiston**|
||**Gateway**|**Birmingham**|**Ormiston**|**Academy**|
||**Learning**|**Ormiston**|**Academies**|**Theatre**|
||**Community**|**Academy**|**Trust**|**Limited**|
|**Company No’s**|**(05853746)**|**(06832416)**|**(06982127)**|**(09160896)**|
||**£’000**|**£’000**|**£’000**|**£’000**|
|Income|22,640|28,432|283,026|442|
|Expenditure|(23,525)|(9,627)|(288,473)
|(447)
|
|Net (expenditure)/income|(885)|18,805|(5,447)|(5)|
|Actuarial gains|3,246|1,002|22,839
|-
|
|Net movement in funds for the|||||
|period|2,361|19,807|17,392
|(5)
|
|Assets|47,900|46,725|554,378|11|
|Liabilities (excluding pension|||||
|scheme liability)|(1,034)|(896)|(25,495)|-|
|Provisions|-|-|(1,096)|-|
|Pension scheme liability|-|-|(2,369)
|-
|
|Funds as at|||||
|31 August 2023|46,866|45,829|525,418|11|
Registered offices of the subsidiary undertakings are as follows:
Gateway Learning Community – Marshfoot Road, Grays, Essex, RM16 4LU.
Birmingham Ormiston Academy and its subsidiary company Birmingham Ormiston Academy Theatre Limited - 1 Grosvenor Street, Birmingham, B4 7QD.
Ormiston Academies Trust – Unit G.05B, Assay Studios, 141 Newhall Street, Birmingham, B3 1SF.
40
**The Ormiston Trust for the year ended 31 August 2023 Notes to the financial statements**
## **14. Intangible Fixed Assets – Group**
|**Intangible Fixed Assets – Group**||
|---|---|
||**Computer**|
||**Software**|
||**£’000**|
|Cost||
|**At 1 September 2022 and 31 August 2023**|336
|
|Amortisation||
|At 1 September 2022|133|
|Charge for the year|52
|
|**At 31 August 2023**|185
|
|**Net book value**||
|**At 31 August 2023**|151
|
|At 31 August 2022|203
|
The amortisation of computer software assets is included within charitable activities expenditure.
41
**The Ormiston Trust for the year ended 31 August 2023 Notes to the financial statements**
## **15. Tangible fixed assets**
|**Group**
**Land and**
**buildings**
**£’000**
**Assets in**
**the course**
**of**
**construction**
**£’000**
**Furniture**
**and**
**equipment**
**£’000**
**Computer**
**equipment**
**£’000**
**Motor**
**vehicles**
**£’000**
Cost or valuation
At 1 September 2022
650,153
980
9,267
13,821
329
Additions
31,779
1,488
1,104
1,890
30
Transfers
1,768
(1,833)
-
65
-
Disposals
(25)
(6)
(134)
(1,118)
(45)
**At 31 August 2023**
683,675
629
10,237
14,658
314
Depreciation
At 1 September 2022
93,245
-
5,959
7,925
285
Charge for the year
12,609
-
610
1,941
15
Disposals
(6)
-
(129)
(1,114)
(45)
Impairment
4,660
113
-
-
-
**At 31 August 2023**
110,508
113
6,440
8,752
255
**Net book value**
**At 31 August 2023**
573,167
516
3,797
5,906
59
**At 31 August 2022**
556,908
980
3,308
5,896
44|**Total**
**£’000**
674,550
36,291
-
(1,328)
709,513
107,414
15,175
(1,294)
4,773
126,068
583,445
567,136|
|---|---|
Included in the land and buildings above is freehold land and buildings with a net book value at 31 August 2023 of £84,983k (2022: £85,415k) and long leasehold land and buildings with a net book value at 31 August 2023 of £488,184k (2022: £471,493k).
Included in the additions to land and buildings are new building extensions donated to the group by Norfolk County Council at a fair value of £7,340k, by Stoke on Trent Council at a fair value of £2,254k and a new property by Birmingham City Council at a fair value of £21,244k.
Included in impairment is £4,660k of land and buildings and £113k of assets under construction relating to Ormiston Courtyard Academy. The premises were returned to the DfE following the closure of Ormiston Courtyard Academy and its amalgamation with Ormiston Bridge Academy with effect from 1 September 2023.
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 (2022: £nil).
The group’s transactions relating to land and buildings included the granting of a leasehold for the site at Barrack Street for £17,569k over a term of 125 years; and land for the site at Barrack Street at a cost of £975k which is being depreciated over a term of 125 years.
At the year end, there were capital commitments contracted for, but not provided within the accounts of £652k (2022: £1,830k).
42
**The Ormiston Trust for the year ended 31 August 2023 Notes to the financial statements**
## **15. Tangible fixed assets** _**(continued)**_
|**Charity**
**Freehold**
**buildings**
**£’000**
**Furniture**
**and**
**equipment**
**£’000**
**Computer**
**equipment**
**£’000**
Cost or valuation
**At 1 September 2022 and at 31 August**
**2023**
225
1
11
Depreciation
At 1 September 2022
-
1
9
Charge for the year
-
-
1
**At 31 August 2023**
-
1
10
**Net book value**
**At 31 August 2023**
225
-
1
**At 31 August 2022**
225
-
2
|**Total**
**£’000**
237
10
1
11
226
227|
|---|---|
The charity’s freehold property was revalued by Mr P Murray of James Duncan and Co, Chartered Surveyors as at 31 August 2023, 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 2022
Additions
Disposals
Fair value adjustment
Movement in cash
**At 31 August 2023**
|**Cash**
**£’000**
**Quoted**
**investments**
**£’000**
**Leasehold**
**properties**
**£’000**
**Freehold**
**properties**
**£’000**
1,469
10,898
325
30,905
-
10,389
-
-
-
(10,175)
-
(3,950)
-
262
-
(925)
3,564
-
-
-
5,033
11,374
325
26,030
|**Total**
**£’000**
43,597
10,389
(14,125)
(663)
3,564
42,762|
|---|---|---|
The investment properties in Ormiston Trust were revalued by Mr P Murray of James Duncan and Co, Chartered Surveyors as at 31 August 2023, 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 2023 which are over 5% of portfolio by value.
43
**The Ormiston Trust for the year ended 31 August 2023 Notes to the financial statements**
## **17. Stocks**
|Goods for resale and supplies
**18.**
**Debtors**
Trade debtors
Other debtors
Prepayments and accrued income
Recoverable VAT
**19.**
**Current asset investments**
Short-term deposit accounts
|**2023**
**Group**
**£’000**
**2023**
**Charity**
**£’000**
382
-
**2023**
**Group**
**£’000**
**2023**
**Charity**
**£’000**
1,673
72
54
-
7,438
100
2,752
-
11,917
172
**2023**
**Group**
**£’000**
**2023**
**Charity**
**£’000**
12,000
-
|**2022**
**Group**
**£’000**
383
**2022**
**Group**
**£’000**
1,632
118
5,034
2,368
9,152
**2022**
**Group**
**£’000**
-|**2022**
**Charity**
**£’000**
-
**2022**
**Charity**
**£’000**
59
-
508
-
567
**2022**
**Charity**
**£’000**
-|
|---|---|---|---|
Current asset investment represents cash held on short-term deposit accounts, in accordance with the group’s investment policy.
## **20. Creditors: amounts falling due within one year**
|Bank loans
Trade creditors
Taxation and social security
Other creditors
Accruals and deferred income
Grants payable
Loans from ESFA
Salix loan
|**2023**
**Group**
**£’000**
**2023**
**Charity**
**£’000**
112
112
4,112
19
4,266
48
3,899
-
13,700
244
193
449
735
-
158
-
27,175
872
|**2022**
**Group**
**£’000**
50
2,188
3,977
3,732
13,372
1,110
735
158
25,322|**2022**
**Charity**
**£’000**
50
4
79
-
184
1,711
-
-
2,028|
|---|---|---|---|
44
**The Ormiston Trust for the year ended 31 August 2023 Notes to the financial statements**
## **20. Creditors: amounts falling due within one year** _**(continued)**_
|**Deferred income**
Deferred income at 1 September 2022
Resources released from previous years
Resources deferred in the year
Deferred income at 31 August 2023
|**2023**
**Group**
**£’000**
**2023**
**Charity**
**£’000**
3,666
124
(3,666)
(124)
3,585
125
3,585
125
|**2022**
**Group**
**£’000**
2,316
(2,316)
3,666
3,666|**2022**
**Charity**
**£’000**
163
(163)
124
124|
|---|---|---|---|
Deferred income relates to performance related grants, trip and rental income received in advance specifically for future periods.
## **21. Creditors: amounts falling due after more than one year**
|Bank loans
Loans from ESFA
Salix loan
Grants payable
|**2023**
**Group**
**£’000**
**2023**
**Charity**
**£’000**
4,858
4,858
641
-
315
-
150
546
5,964
5,404
|**2022**
**Group**
**£’000**
4,950
1,049
473
50
6,522|**2022**
**Charity**
**£’000**
4,950
-
-
518
5,468|
|---|---|---|---|
## **Group**
At the year end, the group had a Salix loan amounting to £473k (2022: £631k). The loan terms are for 9 years at an interest rate of 0%.
At the year end, the group owed the ESFA £320k (2022: £320k) with agreed payment terms of 4 years at an interest rate of 0%. With respect to a further loan the group had with the ESFA, at the year end the group owed £600k (2022: £900k) with agreed payment terms of 9 years at an interest rate of 0%. Also with respect to a further loan with the ESFA, at year end the group owed £232k (2022: £307k) with agreed payment terms of 9 years at an interest rate of 1.83%. A further loan was in place where the group owed the ESFA £224k (2022: £257k) with agreed payment terms of 10 years at an interest rate of 0%.
## **Group and Charity**
The group has bank loans which entirely relate to the charity of £4,970k (2022: £5,000k) at the year end, which are repayable by instalment over a 20-year term which started 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.
45
**The Ormiston Trust for the year ended 31 August 2023 Notes to the financial statements**
## **21. Creditors: amounts falling due after more than one year** _**(continued)**_
The loan maturity of all group loans is given below:
|**Loan maturity**
Debt due in one year or less
Due in more than one year but not more than five years
Due in more than five years
|**2023**
**£’000**
1,005
1,335
4,479
6,819
|**2022**
**£’000**
943
2,214
4,258|
|---|---|---|
|||7,415|
## **22. Provisions for liabilities**
The provision at 31 August 2023 amounting to £1,096k (2022: £1,273k), 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, part of the provision has been utilised amounting to £177k (2022: £294k).
The principal assumption for this calculation is using a discount rate of 5.00% (2022: 3.30%) and price inflation of 2.80% (2022: 2.90%).
## **23. Grant commitments**
|Grant commitments at 31 August 2022
New commitments charged to the SOFA
(see note 8)
Grants paid during the year
|**2023**
**Group**
**£’000**
**2023**
**Charity**
**£’000**
1,160
2,229
826
1,013
(1,643)
(2,247)
343
995
|**2022**
**Group**
**£’000**
262
1,898
(1,000)
1,160|**2022**
**Charity**
**£’000**
1,154
2,882
(1,807)
2,229|
|---|---|---|---|
During the year, the Charity paid out £2,247k (2022: £1,807k) of grants, of which the majority had already been committed. A further £1,013k (2022: £2,882k) of grants were committed net of grants written back/refunded in the year.
## **24. Endowment Funds – Group and Charity**
||**At 1**|||**Gains,**|**At**|
|---|---|---|---|---|---|
|**Current year**|**September**|**Income**|**Expenditure**|**losses and**|**31 August**|
||**2022**|**£’000**|**£’000**|**transfers**|**2023**|
||**£’000**|||**£’000**|**£’000**|
|Expendable endowment|30,993|-|-|(542)|30,451|
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.
46
**The Ormiston Trust for the year ended 31 August 2023 Notes to the financial statements**
## **24. Endowment Funds – Group and Charity (continued)**
|**Prior year**
**At 1**
**September**
**2021**
**£’000**
Expendable endowment
27,077
**25.**
**Restricted funds**
**Group – current year**
**At 1**
**September**
**2022**
**£’000**
Restricted general funds
General Annual Grant
(GAG)
14,679
Other government /
private sector grants
705
Other restricted funds
1,063
Restricted pension
reserve
(26,613)
Restricted fixed asset
funds
576,737
566,571
**Group – Prior year**
**At 1**
**September**
**2021**
**£’000**
Restricted general funds
General Annual Grant
(GAG)
8,322
Other government /
private sector grants
2,598
Other restricted funds
2,049
Restricted pension
reserve
(165,952)
Restricted fixed asset
funds
518,971
365,988|**Income**
**£’000**
**Expenditure**
**£’000**
**Gains,**
**losses and**
**transfers**
**£’000**
**At**
**31 August**
**2022**
**£’000**
-
-
3,916
30,993
**Income**
**£’000**
**Expenditure**
**£’000**
**Gains,**
**losses and**
**transfers**
**£’000**
**At**
**31 August**
**2023**
**£’000**
229,364
(227,071)
(1,369)
15,603
36,687
(37,145)
-
247
21,793
(22,367)
-
489
-
(2,843)
27,087
(2,369)
43,681
(27,401)
1,503
594,520
331,525
(316,827)
27,221
608,490
**Income**
**£’000**
**Expenditure**
**£’000**
**Gains,**
**losses and**
**transfers**
**£’000**
**At**
**31 August**
**2022**
**£’000**
219,026
(211,114)
(1,555)
14,679
27,486
(29,171)
(208)
705
15,846
(16,832)
-
1,063
(5,641)
(20,247)
165,227
(26,613)
74,243
(18,211)
1,734
576,737
330,960
(295,575)
165,198
566,571|
|---|---|
47
**The Ormiston Trust for the year ended 31 August 2023 Notes to the financial statements**
## **25. Restricted funds (continued)**
All the restricted funds relate to the academy trust subsidiaries are held in accordance with the Academies Accounting Direction. Further details of the funds can be found in the academy’s individual accounts.
## **Gains, losses and transfers**
The £27,087k pension actuarial gain is the only restricted gain/loss 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.
## **26. Unrestricted funds**
|**Group – current**
**year**
**At 1**
**September**
**2022**
**£’000**
General funds
15,665
**Group – prior year**
**At 1**
**September**
**2021**
**£’000**
General funds
12,159
**Charity – Current**
**year**
**At 1**
**September**
**2022**
**£’000**
General funds
8,358
**Charity – prior year**
**At 1**
**September**
**2021**
**£’000**
General funds
7,540|**Income**
**£’000**
**Expenditure**
**£’000**
**Gains,**
**losses and**
**transfers**
**£’000**
7,362
(6,916)
(255)
**Income**
**£’000**
**Expenditure**
**£’000**
**Gains,**
**losses and**
**transfers**
**£’000**
8,105
(6,301)
1,702
**Income**
**£’000**
**Expenditure**
**£’000**
**Gains,**
**losses and**
**transfers**
**£’000**
1,915
(1,850)
(121)
**Income**
**£’000**
**Expenditure**
**£’000**
**Gains,**
**losses and**
**transfers**
**£’000**
1,944
(2,799)
1,673|**At**
**31 August**
**2023**
**£’000**
15,856
**At**
**31 August**
**2022**
**£’000**
15,665
**At**
**31 August**
**2023**
**£’000**
8,302
**At**
**31 August**
**2023**
**£’000**
8,358|
|---|---|---|
Unrestricted funds include a revaluation reserve of £17k which arose on the revaluation of the trust’s freehold property.
48
**The Ormiston Trust for the year ended 31 August 2023 Notes to the financial statements**
## **27. Analysis of net assets between funds**
## **Group**
Fund balances at 31 August 2023 are represented by:
||||**Restricted**|**Restricted**||
|---|---|---|---|---|---|
||**Unrestricted**|**Endowment**|**general**|**fixed asset**||
||**funds**|**fund**|**funds**|**funds**|**Total**|
||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|Investments|12,311|30,451|-|-|42,762|
|Intangible fixed assets|-|-|-|151|151|
|Tangible fixed assets|226|-|-|583,219|583,445|
|Current assets|9,488|-|44,405|11,150|65,043|
|Current liabilities|(766)|-|(26,409)|-|(27,175)|
|Long term liabilities|(5,403)|-|(561)|-|(5,964)|
|Provisions|-|-|(1,096)|-|(1,096)|
|Pension reserve|-|-|(2,369)|-
|(2,369)
|
||15,856|30,451|13,970|594,520|654,797|
Fund balances at 31 August 2022 are represented by:
||||**Restricted**|**Restricted**||
|---|---|---|---|---|---|
||**Unrestricted**|**Endowment**|**general**|**fixed asset**||
||**funds**|**fund**|**funds**|**funds**|**Total**|
||**£’000**|**£’000**|**£’000**|**£’000**|**£’000**|
|Investments|12,604|30,993|-|-|43,597|
|Intangible fixed assets|-|-|-|203|203|
|Tangible fixed assets|227|-|-|566,909|567,136|
|Current assets|9,261|-|43,137|9,625|62,023|
|Current liabilities|(1,427)|-|(23,895)|-|(25,322)|
|Long term liabilities|(5,000)|-|(1,522)|-|(6,522)|
|Provisions|-|-|(1,273)|-|(1,273)|
|Pension reserve|-|-|(26,613)|-
|(26,613)
|
||15,665|30,993|(10,166)|576,737|613,229|
## **Charity**
Fund balances at 31 August 2023 are represented by:
|**Endowment**
**funds**
**£’000**
**Restricted**
**funds**
**£’000**
**Unrestricted**
**fund**
**£’000**
Investments
30,451
-
12,311
Tangible fixed assets
-
-
226
Current assets
-
-
2,041
Current liabilities
-
-
(872)
Long term liabilities
-
-
(5,404)
30,451
-
8,302|**Total**
**£’000**
42,762
226
2,041
(872)
(5,404)
38,753|
|---|---|
49
**The Ormiston Trust for the year ended 31 August 2023 Notes to the financial statements**
## **27. Analysis of net assets between funds** _**(continued)**_
Fund balances at 31 August 2022 are represented by:
|**Endowment**
**funds**
**£’000**
**Restricted**
**funds**
**£’000**
**Unrestricted**
**fund**
**£’000**
Investments
30,993
-
12,604
Tangible fixed assets
-
-
227
Current assets
-
-
3,023
Current liabilities
-
-
(2,028)
Long term liabilities
-
-
(5,468)
30,993
-
8,358|**Total**
**£’000**
43,597
227
3,023
(2,028)
(5,468)
39,351|
|---|---|
## **28. Contingent liabilities**
There were no contingent liabilities at 31 August 2023 or 31 August 2022.
## **29. Operating leases**
At 31 August 2023, 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|**2023**
**£’000**
1,375
2,373
1,901
5,649|**2022**
**£’000**
1,288
2,172
1,954
5,414|
|---|---|---|
The group is also party to a facilities management contract under a PFI scheme, through a supplementary agreement with the local authorities. Total commitments under the contract are £1,927k (2022: £1,746k) within one year, £5,579k (2022: £5,679k) between one and five years and £10,751k (2022: £10,579k) in greater than five years.
50
**The Ormiston Trust for the year ended 31 August 2023 Notes to the financial statements**
## **30. 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 £9k (2022: £5k).
## **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 2020, and of the LGPS to the period ended 31 March 2022.
Contributions amounting to £3,614k (2022: £3,479k) were payable to the schemes at 31 August 2023 and included within creditors.
## **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 2023 published by HM Treasury every 4 years. The aim of the review is to specify the level of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2020 in accordance with The Public Service Pensions (Valuations and Employer Cost Cap) Directions 2023 and the Employer Contribution Rate was assessed using agreed assumptions in line with the Directions and was accepted at the original assessed rate as there was no cost control mechanism breach.
The valuation report was published by the Department for Education on 26 October 2023. The key elements of the valuation and subsequent consultation are:
- total scheme liabilities for service (the capital sum needed at 31 March 2020 to meet the stream of future cash flows in respect of benefits earned) of £262 billion
- value of notional assets (estimated future contributions together with the proceeds from the notional investments held at the valuation date) of £222 billion
- notional past service deficit of £39.8 billion (2016: £22 billion)
- discount rate is 1.7% in excess of CPI (2016: 2.4% in excess of CPI) (this change has had the greatest financial significance)
As a result of the valuation, employer contribution rates have been set at 28.6% of pensionable pay from 1 April 2024 until 31 March 2027 (compared to 23.68% under the previous valuation including a 0.08% administration levy).
The employer’s pension costs paid to TPS in the period amounted to £23,297k (2022: £22,056k).
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.
51
**The Ormiston Trust for the year ended 31 August 2023 Notes to the financial statements**
## **30. Pension commitments** _**(continued)**_
## **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, Worcestershire, City of Westminster, Royal Borough of Kensington and Chelsea and London Borough of Hammersmith and Fulham 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 2023 was £14,726k (2022: £12,486k), of which employer’s contributions totalled £11,574k (2022: £9,776k) and employees’ contributions totalled £3,152k (2022: £2,710k). The agreed contribution rates for future years are 12.2% – 28.7% 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 and on 21 July 2022, the Department for Education reaffirmed its commitment to the guarantee, with a parliamentary minute published on GOV.UK.
The LGPS obligation relates to the employees of the Group together with new employees who joined the scheme in the period.
## **Principal actuarial assumptions:**
The following information is based upon a full actuarial valuation of the funds at 31 March 2022 updated to 31 August 2023 by the qualified independent actuaries.
||||||**Rate**|**of**|
|---|---|---|---|---|---|---|
||**Discount**||||**increase for**||
||**rate**|**for**|**Rate**|**of**|**pensions in**||
||**scheme**||**increase in**||**payment /**||
||**liabilities**||**salaries**||**inflation**||
||**2023**|**2022**|**2023**|**2022**|**2023**|**2022**|
||**%**|**%**|**%**|**%**|**%**|**%**|
|Cambridge Local Government Pension|5.2|4.3|3.5|3.6|3.0|3.1|
|Scheme|||||||
|Cheshire Local Government Pension Scheme|5.2|4.3|3.7|3.8|3.0|3.1|
|Norfolk Local Government Pension Scheme|5.2|4.3|3.7|3.8|3.0|3.1|
|Isle of Wright Local Government Pension|5.2|4.3|4.0|3.9|3.0|3.1|
|Scheme|||||||
|Suffolk Local Government Pension Scheme|5.2|4.3|4.0|3.8|3.0|3.1|
|West Midlands Local Government Pension|5.2|4.3|4.0|4.1|3.0|3.1|
|Scheme|||||||
|Staffordshire Local Government Pension|5.2|4.3|3.5|3.5|3.0|3.1|
|Scheme|||||||
|Derbyshire Local Government Pension|5.2|4.3|4.0|3.8|3.0|3.1|
|Scheme|||||||
|East Riding Local Government Pension|5.2|4.3|3.0|4.0|3.0|3.1|
|Scheme|||||||
|Essex Local Government Pension Scheme|5.3|4.3|3.9|3.9|2.9|2.9|
|West Sussex Local Government Pension|5.2|4.3|4.5|3.6|3.0|3.1|
|Scheme|||||||
|Worcestershire Local Government Pension|5.4|4.3|4.3|4.4|3.0|2.9|
|Scheme|||||||
|City of Westminster Local Government|5.2|4.3|4.0|4.1|3.0|3.1|
|Pension Scheme|||||||
|Royal Borough of Kensington and Chelsea|5.2|4.3|4.0|4.1|3.0|3.1|
|Local Government Pension Scheme|||||||
|London Borough of Hammersmith and Fulham|5.2|4.3|4.0|4.1|3.0|3.1|
|Local Government Pension Scheme|||||||
52
**The Ormiston Trust for the year ended 31 August 2023 Notes to the financial statements**
## **30. Pension commitments** _**(continued)**_
## **Local Government Pension** _**(continued)**_
## **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**|
||**2023**|**2023**|**2023**|**2023**|
|Cambridge Local Government Pension Scheme|20.6|22.5|24.4|25.0|
|Cheshire Local Government Pension Scheme|19.6|20.2|23.5|24.8|
|Norfolk Local Government Pension Scheme|20.5|21.8|23.5|25.9|
|Isle of Wight Local Government Pension Scheme|19.7|24.1|21.6|25.5|
|Suffolk Local Government Pension Scheme|20.3|21.9|24.0|25.4|
|West Midlands Local Government Pension Scheme|20.5|21.3|24.5|25.0|
|Staffordshire Local Government Pension Scheme|21.1|21.0|23.4|24.7|
|Derbyshire Local Government Pension Scheme|20.8|21.6|23.8|25.3|
|East Riding Local Government Pension Scheme|21.1|21.9|24.0|25.5|
|Essex Local Government Pension Scheme|20.7|22.0|23.2|24.6|
|West Sussex Local Government Pension Scheme|21.6|21.0|24.9|25.4|
|Worcestershire Local Government Pension Scheme|21.5|22.8|23.8|25.6|
|City of Westminster Local Government Pension|21.9|23.1|24.3|25.8|
|Scheme|||||
|Royal Borough of Kensington and Chelsea Local|21.9|22.8|24.5|25.7|
|Government Pension Scheme|||||
|London Borough of Hammersmith and Fulham|21.6|22.6|24.3|25.6|
|Local Government Pension Scheme|||||
## **Amounts recognised in the balance sheet**
|**Amounts recognised in the balance sheet**|||
|---|---|---|
||**2023**|**2022**|
||**£’000**|**£’000**|
|Present value of funded obligations|(182,476)|(207,519)|
|Fair value of scheme assets|194,509|180,906|
|Restriction to level of asset ceiling|(14,402)|-
|
|**Net liability recognised on the balance sheet**|(2,369)|(26,613)|
The value of the group’s share of net assets has been restricted due to the effect of the asset ceiling being the maximum value of the present of the economic benefits available in the form of the unconditional right to reduced contributions from the plan. A corresponding charge has been made to other comprehensive income in the period.
## **Amounts recognised in the statement of financial activities**
|Current service cost
Net interest cost
Admin costs
**Total**|**2023**
**£’000**
13,276
1,132
9
14,417|**2022**
**£’000**
27,068
2,965
6
30,039|
|---|---|---|
53
**The Ormiston Trust for the year ended 31 August 2023 Notes to the financial statements**
## **30. Pension commitments** _**(continued)**_
## **Local Government Pension** _**(continued)**_
## **Actuarial gain on remeasurement of defined benefit pension scheme**
|Actuarial gains
Return on plan assets
Restriction to level of asset ceiling
**Per Statement of financial activities**|**2023**
**£’000**
**2022**
**£’000**
47,765
170,209
(6,276)
(4,982)
(14,402)
-
27,087
165,227|
|---|---|
Movements in the present value of defined benefit obligations were as follows:
||**2023**|**2022**|
|---|---|---|
||**£’000**|**£’000**|
|Liabilities brought forward|207,519|334,190|
|Obligations acquired on conversion/transfer|-|10,363|
|Current service cost|13,276|27,068|
|Interest cost|9,068|5,923|
|Contributions by employees|3,152|2,711|
|Actuarial gains|(47,765)|(170,209)|
|Benefits paid|(2,774)|(2,527)
|
|**Liabilities carried forward**|182,476|207,519
|
|Movements in the fair value of group’s share of scheme assets:|||
||**2023**|**2022**|
||**£’000**|**£’000**|
|Fair value of scheme assets brought forward|180,906|168,238|
|Assets acquired on conversion/transfer|-|4,722|
|Interest income|7,936|2,958|
|Return on plan assets|(6,276)|(4,982)|
|Contributions by employer|11,574|9,792|
|Contributions by employees|3,152|2,711|
|Admin expenses|(9)|(6)|
|Benefits paid|(2,774)|(2,527)
|
|**Fair value of scheme assets carried forward**|194,509|180,906
|
|The major categories of scheme assets are as follows:|||
||**2023**|**2022**|
||**£’000**|**£’000**|
|Equities|124,910|116,383|
|Bonds|34,521|30,433|
|Property|21,021|19,754|
|Cash and other|14,057|14,336
|
|**Total fair value of assets**|194,509|180,906|
The actual return on scheme assets was (£12,561k) (2022: (£2,024k)).
54
**The Ormiston Trust for the year ended 31 August 2023 Notes to the financial statements**
## **31. 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
|**2023**
**Group**
**£’000**
**2023**
**Charity**
**£’000**
42,762
42,762
|**2022**
**Group**
**£’000**
43,597|**2022**
**Charity**
**£’000**
43,597|
|---|---|---|---|
## **32. Agency arrangements**
The Group distributes 16 - 19 bursary funds to students as agent for the ESFA. In the accounting period ended 31 August 2023, the Group received £505k (2022: £435k) and disbursed £324k (2022: £310k) from the fund. At the year, the balance not yet disbursed was £181k (2022: £128k).
## **33. 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**|
|**2023**||||
|James Murray|P Murray’s Son|Employed by the charity|69|
|James Duncan and Co|Controlled by P|Professional fees|16|
||Murray|||
|Ormiston Families|P Murray a trustee|Grants given|824|
|**2022**||||
|James Murray|P Murray’s Son|Employed by the charity|70|
|James Duncan and Co|Controlled by P|Professional fees|12|
||Murray|||
|Ormiston Families|P Murray a trustee|Grants given|1,172|
At the year end, the group owed £300k (2022: £619k) to Ormiston Families.
## **Charity**
During the year, the trust made grant commitments net of grants written back/refunded to subsidiary undertakings of £147k (2022: £984k) and paid commitments of £564k (2022: £808k). Amounts due to the subsidiary undertakings in respect of grant commitments by the trust at 31 August 2023 was £652k (2022: £1,069k).
55
**The Ormiston Trust for the year ended 31 August 2023 Notes to the financial statements**
## **34. Reconciliation of net income to net cash flow from operating activities**
|**Net 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
Inherited fixed assets
Net loss/(gains) on investments
Rent income, interest and dividends from investments
Interest payable
Depreciation, amortisation and impairment
Loss on disposal of fixed asset
Defined benefit pension scheme adjustment
Decrease in provisions
Decrease/(increase) in stocks
(Increase)/decrease in debtors
Increase in creditors
**Net cash (used in)/provided by operating activities**|**2023**
**£’000**
**2022**
**£’000**
14,481
42,778
-
(52,080)
(11,745)
(7,467)
(10,079)
(3,343)
(21,857)
(5,712)
663
(5,589)
(2,075)
(1,953)
320
236
20,000
14,152
34
-
2,843
20,247
(177)
(294)
1
(24)
(2,765)
80
1,891
5,037
(8,465)
6,068|
|---|---|
## **35. Analysis of changes in net funds**
|**Analysis of changes in net funds**||||
|---|---|---|---|
|**1 September**
**2022**
**£’000**
Cash
52,488
Short term investment
-
52,488
Loans falling due within one year
(943)
Loans falling due after more than one
year
(6,472)
45,073||**Cash**
**Flows**
**£’000**
**Other non-**
**cash changes**
**£’000**
(11,744)
-
12,000
-
256
-
596
(658)
-
658
852
-|**31 August**
**2023**
**£’000**
40,744
12,000
52,744
(1,005)
(5,814)
45,925|
|||||
## **36. Post balance sheet events**
At Ormiston Academies Trust, on 1 September 2023 Ormiston Courtyard Academy amalgamated with Ormiston Bridge Academy.
56