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2023-08-31-accounts

MAHARISHI SCHOOL TRUST LIMITED (A Company Limited by Guarantee)

REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 AUGUST 2023

Company Limited by Guarantee Registration Number: 1902341 (England and Wales) Charity Registration Number: 517958

MAHARISHI SCHOOL TRUST LIMITED

CONTENTS for the year ended 31 August 2023

Page
Reference and Administrative Details 1 – 2
Trustees’ Report 3 - 11
Governance Statement 12 - 21
Statement on Regularity, Propriety and Compliance 22
Statement of Trustees’ Responsibilities 23
Independent Auditor’s Report on the Financial Statements 24 - 25
Independent Auditor’s Report on Regularity 26 - 27
Statement of Financial Activities incorporating Income and Expenditure Account 28 - 29
Balance Sheet 30
Cash Flow Statement 31
Notes to the Financial Statements, incorporating:
Statement of Accounting Policies 32 - 36
Other Notes to the Financial Statements 37 – 54

MAHARISHI SCHOOL TRUST LIMITED

REFERENCE AND ADMINISTRATIVE DETAILS for the year ended 31 August 2023

Governors (Trustees) *Member of Finance Committee

A O'Neill Appointed 5 November 2022 C Latham Appointed 1 September 2022 C Winteringham G Evans I Birnbaum (Chair) J Smalley Appointed 30 November 2022 J Duckett Appointed 1 November 2022 J Lees Appointed 1 September 2022 L Gaskell L Edwards L Walters L Andrews Appointed 1 November 2022 M Ingram Appointed 5 May 2023 R Marriott R Trandafoiu Retired 31 October 2022 P Duckworth Retired 31 October 2022 L Wilkinson Secretary P Magee Appointed 1 September 2022

On 14 October 2023 Mr R Buswell* was appointed as a Trustee.

Senior managers

Principal/Accounting Officer L Edwards*

Deputy Head - Secondary L Walters Deputy Head - Primary L Gaskell Business Manager P Magee Appointed 1/9/2022 Registered Office Cobbs Brow Lane Lathom L40 6JJ Tel: 01695 729912 Company Registration Number 1902341 (England and Wales)

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MAHARISHI SCHOOL TRUST LIMITED

REFERENCE AND ADMINISTRATIVE DETAILS for the year ended 31 August 2023

Auditors JVSA Ltd
Chartered Accountants
Suite 205-209 Malthouse Business Park
48 Southport Road
Ormskirk
L39 1QR
Bankers Lloyds
PO Box 1000
Andover
BX1 1LT
Solicitors HY Education
3, Reed House,
Hunter's Ln,
Rochdale
OL16 1YL

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MAHARISHI SCHOOL TRUST LIMITED

TRUSTEES’ REPORT for the year ended 31 August 2023

The trustees present their annual report together with the financial statements and auditors’ report of the charitable company for the year 1 September 2022 to 31 August 2023.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution

The School is a company limited by guarantee with no share capital (registration no. 1902341). The Academy Trust's memorandum and articles of association are the primary governing documents of the School together with the Funding Agreement entered into with the Secretary of State for Education. Members of the Academy Trust comprise of the signatories to the memorandum, up to 3 persons who may be appointed by Maharishi Foundation and 1 person who may be appointed by the Secretary of State, the Chair of Governors and others whom existing members may unanimously appoint. The articles of association require the members of the Academy Trust to appoint at least three governors to be responsible for the statutory and constitutional affairs and management of the School.

Members’ liability

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

Trustees’ Indemnities

The Academy has purchased insurance to protect trustees, governors and officers from claims arising from negligent acts, errors or omissions occurring whilst on Academy business. The insurance provides cover up to £10 million for governors’ liability on any one occurrence.

Principal Activities

The principal activity of the charitable company is the operation of the Maharishi School Trust to provide education for pupils of different abilities between the ages of 4 and 16 known as Consciousness-based Education.

Method of Recruitment and Appointment or Election of Trustees

The governors are directors of the charitable company for the purposes of the Companies Act 2006 and trustees for the purposes of charity legislation. The governors who were in office at 31 August 2023 and served throughout the year are listed on page 1. During the year under review the governors held 6 meetings. The training and induction provided for new Governors will depend on their existing experience. Where necessary, induction will provide information on charity, educational, legal and financial matters. All new Governors will be given a tour of the School, including the chance to meet with staff and students.

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MAHARISHI SCHOOL TRUST LIMITED

TRUSTEES’ REPORT for the year ended 31 August 2023

Method of Recruitment and Appointment or Election of Trustees continued

All governors are provided with access to copies of our policies, procedures, minutes, accounts, budgets, plans and other documents that they will need to undertake their role as governors. As the number of new governors a year is limited, induction tends to be done informally and is tailored specifically to the individual.

Policies and Procedures Adopted for the Induction and Training of Trustees

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

The governors are responsible for keeping proper accounting records which disclose with reasonable accuracy the financial position of the charitable company and which enable them to ensure that the financial statements comply with the Companies Act 2006.

They are also responsible for safeguarding the assets of the Academy Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The governors confirm that so far as they are aware, there is no relevant audit information of which the Academy Trust’s auditors are unaware. They have taken all the steps that they ought to have taken as governors in order to make themselves aware of any relevant audit information and to establish that the Academy Trust’s auditors are aware of that information. The governors are responsible for the maintenance and integrity of the Academy Trust’s website.

Organisational Structure

The structure consists of two levels: The Governors and The Senior Managers. The aim of the management structure is to devolve responsibility and encourage involvement in decision making at all levels.

The Governors are responsible for setting general policy, adopting an annual plan and budget, monitoring the School by the use of budgets and making major decisions about the direction of the School, capital expenditure and senior staff appointments.

The next layer is the Senior Managers, these are the Head teacher, two Deputy Heads and the Business Manager. These managers control the School at an executive level implementing the policies laid down by the Governors and reporting back to them. As a group the Senior Managers are responsible for the authorisation of spending within agreed budgets and the appointment of staff, though appointment boards for posts in the Management Team always contain a Governor.

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MAHARISHI SCHOOL TRUST LIMITED

TRUSTEES’ REPORT for the year ended 31 August 2023

Risk Management

The governors have assessed the major risks to which the School is exposed, in particular those relating to the specific teaching, provision of facilities and other operational areas of the School, and its finances.

The governors have implemented a number of systems to assess risks that the school faces, especially in the operational areas (e.g. in relation to teaching, child protection, health and safety, data protection, relationships and school trips) and in relation to the control of finance. They have introduced systems, including operational procedures (e.g. vetting of new staff and visitors, security of school grounds) and internal financial controls (see below) in order to minimise risk. Where significant financial risk still remains they have ensured they have adequate insurance cover through the DfE RPA scheme. The School has an effective system of internal financial controls and this is explained in more detail in the following statement.

Statement on the system of internal finance control

As governors, we acknowledge we have overall responsibility for ensuring that Maharishi School Trust has an effective and appropriate system of control, financial and otherwise. We are also responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the School and enable us to ensure the financial statements comply with the Companies Act. We also acknowledge responsibility for safeguarding the assets of the School and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities and to provide reasonable assurance, that:-

The School’s system of internal financial control is based on a framework of regular management information and administrative procedures including the segregation of duties and a system of delegation and accountability. In particular, it includes:

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TRUSTEES’ REPORT for the year ended 31 August 2023

Statement on the system of internal finance control continued

The governors have considered the need for a specific internal audit function and have decided not to appoint an internal auditor. However, the governors have appointed UHY Hacker Young as Responsible Officer (RO). The RO’s role includes giving advice on financial matters and performing a range of checks on the Academy’s financial systems on a termly basis. The Internal Audit Committee which is a sub-group of the Finance Committee, holds termly meetings to review the Responsible Officer’s reports and make recommendations accordingly.

The Responsible Officer is required to report to the Governing Body, via the Internal Audit Committee, on the operation of the systems of control and on the discharge of the Governing Body’s financial responsibilities. These arrangements provide reasonable but not absolute assurance that assets are safeguarded, transactions are authorised and properly recorded, and that material errors or irregularities are either prevented or would be detected within a timely period.

Objectives, Strategies and Activities

The main objectives of the School during the year ended 31 August 2023 are summarised below:

Public Benefit

One of Maharishi Free School’s guiding principles is “The world is my family”.

We recognise the unity of every individual with every aspect of the world, not only other people, but the whole environment. A practical expression of this is the fundraising of various types our pupils undertake for those in need, both at home and around the world. In the last year the school has raised money for BBC Children in Need and in conjunction with the school fundraising committee held successful Fairs: the winter fair was held at the high school site and the summer fair at nearby Newburgh Sports Club.

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TRUSTEES’ REPORT for the year ended 31 August 2023

Public Benefit continued

The school is also licenced to operate the Duke of Edinburgh award scheme and often has the highest proportion of involved pupils in the region. Sufficient time and resource is allowed for pupils to work towards both Bronze and Silver awards. The Duke of Edinburgh award includes the requirement of participants to undertake a volunteering activity.

The trustees have complied with their duty to have due regard to the Charity Commission guidance on public benefit by seeking to promote, sustain and increase individual and collective knowledge and understanding of specific areas of study, skills and expertise. In support of this Maharishi School provides its highly beneficial system of Consciousness-based Education to as many children as possible within the physical constraints of the current buildings. Despite this the school is often unable to satisfy demand for places, both locally and beyond. As a result, from the 1[st] September 2022 the Governing Body increased class sizes from 18 to 20. The school also actively supports parents in learning the practical element of Consciousness-based Education, the Transcendental Meditation (TM) technique by procuring funds for this purpose.

ACHIEVEMENTS AND PERFORMANCE

The School is in its twelfth year of operation as a Free School and continues to attract students for all year groups. Total students at the year ended on 31st August 2023 numbered 233.

Pupils' achievement in KS2 SATs:

Progress measures in reading and writing are within the estimated confidence intervals:

Y6 pupils attended a weekly English booster session with an English specialist. Groups of targeted children attended maths boosters twice a week with the secondary phase maths teacher and an external teacher (School-led Tutoring funding). Children also attended maths club after school with the class teacher and deputy headteacher. Maths is a School Improvement Plan focus for 2023-2024 and includes involvement with a local Maths Hub throughout the year.

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Pupils achieve mostly good results across a broad range of subjects at GCSE level:

School-led tutoring funding was used in maths and English at the secondary phase

To ensure that standards are continually raised, the School operates a programme of standardised testing of ability, attainment and attitude including Pupil Attitudes to Self and School (PASS), Progress Test in Maths (PiM), Progress Test in English (PiE) and Progress Test in Science (PiS) scores, and Cognitive Ability Testing (CAT). Peer and Governor observation of lessons takes place and the school organises visits by external inspectors. Staff maintain contacts with other local schools to share and learn successful practice. Maharishi School continues to be part of the “Shares” cluster of local schools in which training, information and practice experience are shared to benefit all cluster members equally.

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MAHARISHI SCHOOL TRUST LIMITED

TRUSTEES’ REPORT for the year ended 31 August 2023

Going Concern

After making appropriate enquiries, the board of trustees has a reasonable expectation that the academy trust has adequate resources to continue in operational existence for the foreseeable future. For this reason, it continues to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Statement of Accounting Policies.

Key Financial Performance Indicators

Maharishi School is of the view that due to its unique nature and size it is difficult to find comparable schools against which to be benchmarked; the benchmark set provided by the DfE contains three schools. We have compared our financial performance against these schools using the benchmarking tool and the School Resource Management Self-Assessment Tool SRMSA. The checklist data from which is submitted to the ESFA on the school, which used 2021/22 data. This document states the comparison is with other through schools, which experience indicates tend to be academies. The benchmarking tool has been utilised with three different routes of comparison, for which a comprehensive summary report was then produced. This method enabled comparisons with different schools according to the comparison criteria, although some appeared in more than one route group. It was found that the comparator schools were not particularly good matches for Maharishi School for varying reasons. Also, the reporting methodologies for some schools differed from our school, in some cases producing unrealistic figures against which to contrast our own.

Environmentally Maharishi Secondary School is fortunate to occupy a building originally constructed using natural materials wherever practicable, including rammed earth walls. This building was converted for the School’s conversion to Free School Status, under the auspices of the Department for Education, to the latest environmental performance standards, including a new roof. The subsequent addition of CCTV cameras and a higher fence have significantly improved the security and safeguarding provision of the Secondary site. There is a longer term plan to upgrade the Primary School site to achieve more energy efficient buildings. From February 2016, the reception class and other functions occupied a new, stand-alone classroom, constructed largely of timber products and to the highest energy-efficiency standards then current.

The school was not affected by RAAC; the building material found in some school buildings and other education settings, known as Reinforced Autoclaved Aerated Concrete.

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TRUSTEES’ REPORT for the year ended 31 August 2023

Key Financial Performance Indicators continued

The school continues to find that the introduction of Chromebooks operating through the Google Education platform and operating via Wi-Fi has greatly enhanced the learning experience for pupils and maximised the amount of teaching time within lessons. During periods of extended pupil absence, the school continues to make extensive use of online platforms and teaching in order that students remain up to date with their learning.

FINANCIAL REVIEW

Financial and Risk Management Objectives and Policies

The school Finance Committee regularly reviews the Trust’s financial status, including risks and potential forecast pressures and work towards ending each year with a balanced budget in order to maintain sufficient reserves. All the necessary policies and procedures are in place to protect the school from potential risks and are also subject to review.

The year in question is the tenth year in which the school has participated in the Local Government Pension Scheme, from which the Actuaries report indicates a scheme surplus of £112,000 (2022 : £14,000). Given the current uncertain economic climate, the Trustees consider that it would be imprudent to reflect this surplus in the Financial Statements.

Principal Risks and Uncertainties

Outlined below are the principal risks that may affect the Maharishi School Trust.

This risk can be mitigated in a number of ways:

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MAHARISHI SCHOOL TRUST LIMITED

TRUSTEES’ REPORT for the year ended 31 August 2023

Reserves policy

The governors review the reserve levels of the School annually. This review encompasses the nature of income and expenditure streams, the need to match income with commitments and the nature of reserves. The reason for this is to provide sufficient working capital to cover delays between spending and receipt of grants and to provide a cushion to deal with unexpected emergencies such as urgent maintenance.

Financial position

The School held fund balances at 31 August 2023 of £918,100 (2022 - £964,487) comprising £774,084 (2022 - £822,503) of restricted funds and £144,016 (2022 - £141,984) of unrestricted general funds.

Investment Policy

During the financial year Maharishi School Trust Ltd had a cash balance of £276,801, and the governing body has renewed the placing of a sum in a deposit account to maximise income from its balances. The objective of the academy is to ensure that sufficient funds are available at short or no notice to meet foreseeable requirements, while earning an acceptable rate of return without undue risk .

PLANS FOR FUTURE PERIODS

The school will continue working to improve the levels of performance of its students at all levels, and will also maintain its recruitment up to the maximum capacity of our buildings. The School has significantly upgraded its built environment in recent years and is working to continue this work, to create improved conditions for both pupil learning and staff working.

AUDITORS

As set out in the Academies Trust Handbook, Academy trusts should re-tender their audit contract at least every five years. The academy trust will procure the services through a Department for Education (DfE) framework.

The report of the governors was approved by the governors on 7 December 2023 and signed on their behalf by:

Ian Birnbaum, Chairman

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MAHARISHI SCHOOL TRUST LIMITED

GOVERNANCE STATEMENT for the year ended 31 August 2023

Scope of Responsibility

As trustees we acknowledge we have overall responsibility for ensuring that Maharishi School Trust Limited has an effective and appropriate system of control, financial and otherwise. However, such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives, and can provide only reasonable and not absolute assurances against material misstatement or loss.

The board of trustees has delegated the day-to-day responsibility to the Principal, as Accounting Officer, for ensuring financial controls conform with the requirements of both propriety and good financial management and in accordance with the requirements and responsibilities assigned to it in the funding agreement between Maharishi School Trust Limited and the Secretary of State of Education. They are also responsible for reporting to the board of trustees any material weaknesses or breakdowns in internal control.

Governance

The information on governance included here supplements that described in the Trustees’ Report and in the Statements of Trustees’ Responsibilities. The board of trustees has formally met 6 times during the year, utilising Google Meet for those members unable to make the meeting in person.

Trustee Meetings attended Out of a possible
I Birnbaum (Chair) 6 6
L Edwards 6 6
A O'Neill 5 6
C Latham 6 6
C Winteringham 3 6
G Evans 5 6
J Smalley 2 6
J Duckett 5 6
J Lees 4 6
L Gaskell 6 6
L Walters 6 6
L Andrews 4 5
M Ingram 4 6
R Buswell 6 6
R Marriott 6 6
Non Trustee
P Magee (Clerk) 6 6

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MAHARISHI SCHOOL TRUST LIMITED

GOVERNANCE STATEMENT for the year ended 31 August 2023

Governance continued

Finance Committee

The committee assists the decision making of the Governing Body, by enabling more detailed consideration to be given to the best means of fulfilling the Governing Body’s responsibility to ensure sound management of the School’s finances and resources, including proper planning, monitoring and probity. The Finance Committee has the following responsibilities:

  1. Consider the financial aspects of particular matters specifically referred to the committee.

  2. Consider the School’s indicative budget funding obtained from the Ready Reckoner and to assess its implications for the School in consultation with the Principal and Business Manager in advance of the financial year involved, drawing any matters of significance or concern to the attention of the Governing Body.

  3. Consider and recommend acceptance/non-acceptance of the School budget, at the start of each financial year, (1st September – 31st August.)

  4. Contribute to the evolution of the School’s Development Plan, through the consideration of financial priorities and proposals, in consultation with the Principal and Business Manager within the School’s stated and agreed aims and objectives.

  5. Receive and make recommendations on the broad budget headings and areas of expenditure to be adopted each year, including the level and use of any contingency fund or balances, ensuring the compatibility of all such proposals with the development priorities set out in the development plan.

  6. Agree limits of delegation and virements.

  7. Liaise with and receive reports from other Governing Body committees as appropriate and make recommendations to those committees about the financial aspects of matters being considered by them.

  8. Monitor and review income and expenditure on a regular basis and ensure compliance with the overall financial plan for the School and with the requirements of the Funding Agreement, Education and Skills Funding Agency or Department for Education, including the school’s own internal financial regulations, drawing any matters of concern to the attention of the Governing Body.

  9. Monitor and review procedures for ensuring the effective implementation and operation of financial procedures on a regular basis, including the implementation of bank account arrangements and where appropriate to make recommendations for improvement where necessary.

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GOVERNANCE STATEMENT for the year ended 31 August 2023

Governance continued

  1. Prepare the financial statement to form part of the annual report of the Governing Body to parents and for filing in accordance with Companies Act requirements.

  2. Receive Auditors and Responsible Officers reports and to recommend to Governing Body action as appropriate in response to audit findings.

  3. Recommend to the Governing Body the appointment or reappointment of the Trust’s auditors.

  4. Develop and recommend to the Governing Body policies on charging, lettings and contracts that are in accordance with Financial Regulations and advise governors on the financial implications of adopting certain policies.

  5. Additional items as required/agreed.

Premises

  1. Follow the requirements of the Funding Agreement and the Department for Education and other relevant statutory authorities concerning the upkeep of buildings and land.

  2. Ensure that the conditions of the premises and grounds are monitored and receive regular reports.

  3. Ensure that resources are available to implement repair and maintenance as required and in a timely manner.

  4. Prepare a statement of priorities for maintenance and development (Asset Management Plan.)

  5. Receive regular reports on the general maintenance of the premises and grounds and inform the Governing Body of the effectiveness of any planned maintenance programmes/Asset Management Plan.

  6. Approve the budget allocation for maintenance, repairs and redecoration.

  7. Oversee the preparation, implementation and monitoring of premises-related contracts.

  8. Prepare a letting policy for the approval of the Governing Body and to monitor and advise the Governing Body on the use of the school by outside bodies.

  9. Consider and advise the Governing Body on matters relating to the efficient and effective use of the premises and grounds.

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GOVERNANCE STATEMENT for the year ended 31 August 2023

Governance continued

  1. Draft and review the Academy’s Disaster Recovery Plan and make recommendations to the Governing Body.

  2. Be aware of the extent of insurance cover on premises and equipment and review annually.

  3. Additional items as required/agreed.

Attendance at finance committee meetings in the year was as follows

Trustee Meetings attended Out of a possible
I Birnbaum 6 6
L Edwards 6 6
R Buswell 5 6
Non-Trustees
J Scott 5 6
P Mitchell 6 6
G McHarg 5 6

Review of Value for Money

As Accounting Officer, the Principal has responsibility for ensuring that the academy trust delivers good value in the use of public resources. The Accounting Officer is aware of the guidance in the Academies Accounts Direction 2022-23 regarding value for money statements published by the Education Funding Standards Agency and understands that value for money refers to the educational and wider societal outcomes achieved in return for the taxpayer resources received.

The Accounting Officer has set out below how she has ensured that the academy trust’s use of its resources has provided good value for money during the academic year.

Maharishi School 2022-23 Value for Money statement

This statement is to show that Maharishi School Trust’s use of public assets and funds has provided good value for money during the year, and to identify any opportunities for potential improvement, particularly in respect of the following:

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MAHARISHI SCHOOL TRUST LIMITED

GOVERNANCE STATEMENT for the year ended 31 August 2023

Review of Value for Money continued

• the prudent and economical administration of the organisation;

• the establishment and maintenance of a system of financial governance, (including sound internal spending controls, keeping up-to-date financial records, continuous financial monitoring and timely reporting); and

• ensuring all financial transactions represent value for money.

Maharishi School Trust opened as a Free School in September 2011 with a capital cost to the Department for Education of under £1million, compared to the average premises cost of setting up a Free School published by the National Audit Office of £6.6 million. The school was originally conceived on the basis of 15 pupils per class but, due to high levels of demand, we have increased class sizes to 18 by stages, and increasing this to 20 pupils per class from 2022-23. The fact of smaller class sizes ensures that teachers can devote more time to individual pupils and their particular requirements. Maharishi School Trust, in keeping with the requirements of its Funding Agreement with the Department for Education, has all the relevant policies and procedures in place to ensure that the Trust is properly run and provides value for money.

All matters relating to finance are referred to the Finance Committee, which is acutely aware of the Trust’s limited budget and the pressures on it. They have actively questioned expenditure proposals, challenged variances, advised on strategy and expressed their reporting requirements. When satisfied, the Finance Committee have then made appropriate recommendations to the Governing Body. Also, as required, the school has the function of an internal audit in the form of an Internal Audit Committee, as allowed due to the Trusts’ size. As required in the Academies Trust Handbook, the Headteacher, as Accounting Officer is part of this committee. All academy trusts must have a program of internal scrutiny to provide independent assurance to the Governing Body that its financial and other controls, and risk management procedures, are operating effectively. Maharishi employs the services of an external Responsible Officer to carry out internal scrutiny reviews.

The internal scrutiny reviews during the year have focused on:

  1. Evaluating the suitability of, and level of compliance with, financial and other controls. This includes assessing whether procedures are designed effectively and efficiently, and checking transactions to confirm whether agreed procedures have been followed;

  2. Providing advice and insight to the Governing Body on how to address weaknesses in financial and other controls, acting as a catalyst for improvement, but without diluting management’s responsibility for day to day running of the Trust;

  3. Ensuring all categories of risk are being adequately identified, reported and managed;

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GOVERNANCE STATEMENT for the year ended 31 August 2023

Review of Value for Money continued

  1. The internal scrutiny has taken account of output from other assurance procedures, for example, we have regard to recommendations from the external auditors as described in their management letter, and from any relevant reviews undertaken by ESFA.

The internal scrutiny procedures are designed to assist the trustees in discharging their responsibilities to have in place a process for independent checking of financial controls, systems, transactions and risks. The Responsible Officer agreed with the Trust a program of work during the year that is designed to address the risks to internal financial control that are relevant to the Trust.

These bodies are subject to their own Terms of Reference/ Roles and Responsibilities documents and the Finance Committee routinely meets every other month and the Internal Audit every term. Finance meetings take place ten days before Governors’ meetings to ensure that the data and topics under discussion are still current. The meeting schedule is designed to accommodate the production of Quarterly finance reports in order that matters are reported and acted upon in a timely manner. Members of the Governing Body are mostly parents of current or past pupils of the school. The Chair of the Governing Body is a former Chief Executive and Director of Children’s Services of a London Borough.

Maharishi School Trust has been audited by the EFSA who have expressed their satisfaction with the financial management and governance of the Trust, including the requisite policies and procedures. These include:

– Draft internal financial regulations: these ensure that the school maintains and develops systems of financial control which conform with the requirements both of propriety and of good financial management.

– Headteacher and Governing Body responsibilities: this document details the levels of decision making for all aspects of the school.

– Delegated authority table: this details the levels of authority for and conditions pertaining to expenditure amounts.

– Continuity plans for each and both school sites: these provide all the information needed to ensure the fastest possible disaster recovery of school operations.

– Risk Register: this lists all perceived potential risks to the school, level of risk and control procedures. Register updates are a Governing Body standing agenda item.

– Whistleblowing policy: this is intended to enable individuals to raise concerns about general malpractice, abuse or wrongdoing at an early stage and in the right way, without fear of victimisation, subsequent discrimination or disadvantage. The policy is designed to encourage and enable individuals to raise concerns within the school or, if necessary, externally rather than to overlook a problem. (This enables any member of staff, pupil, parent or member of the public to

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GOVERNANCE STATEMENT for the year ended 31 August 2023

Review of Value for Money continued

notify the relevant authority of suspected wrongdoing and ensures investigations are conducted, and if necessary acted upon, impartially and objectively.)

Since the conversion to a Free School the Maharishi School Trust Governing Body has usually approved a balanced budget with a small GAG funding carry forward within recommended guidelines. The outturn figure for 2022/23 is worse than that budgeted at £59,739 (deficit). Maharishi School holds a healthy balance of reserves, which has comfortably covered any past shortfalls. The Trust has submitted statutory financial reports, including Audited Accounts, ESFA Accounts Return and ESFA Budget Forecast Return and BFR Outturns which have satisfied the ESFA Auditors (Deloitte). The Trust has routinely compared its financial performance the Department for Education/Education and Skills Funding Agency Benchmarking systems. In the last two years this has been the online benchmarking tool, using three different criteria. (see Key Performance Indicators, page 9). We are satisfied with our performance compared to Academy Trusts generally, many of which have struggled financially in recent years, despite the diseconomies of scale due to our smaller class sizes and resultant per class funding, especially staff pupil ratio.

This demonstrates a high level of responsibility in the use of the Trust’s funds. The Trust makes every effort to gain the maximum value in procurement of services and products. We are confident the Trust does very well at obtaining good value overall in procurement due to the ongoing review of suppliers and their prices by the finance and admin teams. This has included joining the DfE RPA school insurance scheme in September 2019, which represented a further saving for the school. In terms of the educational and societal outcomes of Maharishi School we can demonstrate that the resources expended are offering exceptional value for money.

Maharishi School was inspected by Ofsted in November 2017 resulting in a “Good” report overall with Outstanding in Personal Development and Welfare. The school was pleased with the report, but is not complacent and regularly reviews its areas to be developed using the school improvement plan.

Development of full potential is nurtured at Maharishi School, as indicated by other pupil achievements. In addition to statutory testing Maharishi School utilises standardised ability, attainment, and attitude testing to regularly monitor pupil abilities and social development.

Extracurricular activities are encouraged and facilitated, including the Duke of Edinburgh award. This introduction has been assisted by the school fundraising group, who also assist, for example, in school trip funding, which allows us to offer a full range of educational visits across the whole school, including residential and foreign trips. Other after-hours offerings during the year included Photography GCSE.

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MAHARISHI SCHOOL TRUST LIMITED

GOVERNANCE STATEMENT for the year ended 31 August 2023

Review of Value for Money continued

Staff recruitment and deployment has been undertaken with care (using the practices recommended by ‘Safer Recruitment’), and is regularly reviewed, to obtain the most beneficial outcomes for pupils. This has been particularly the case in the Primary phase which underwent planned expansion following becoming a Free School. Here, the allocation of teaching assistants and subject specialists reflects the specific requirements of classes as a whole and of individual pupils, including those requiring degrees of one-to-one support. As planned, the school now provides more targeted, specific phonics, English and maths support in both phases. During the last year there has been staff recruitment in both phases following staff emigration to further enhance the school’s offering.

Maharishi School Trust started as a Free School with a good track record in both educational and pastoral provision and financial management, and continues that ethos to the present. We always proactively seek the best value in the use of our funds and will continue to refine our approach to improve on past performance. The development of our pupils is of paramount importance to us and we will continue to do whatever we can to maximise the value to them of our funding.

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MAHARISHI SCHOOL TRUST LIMITED

GOVERNANCE STATEMENT

for the year ended 31 August 2023

The Purpose of the System of Internal Control

The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk of failure to achieve policies, aims and objectives. It can therefore only provide reasonable and not absolute assurance of effectiveness. The system of internal control is based on an on-going process designed to identify and prioritise the risks to the achievement of academy trust policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically. The system of internal control has been in place in Maharishi School Trust for the period 1 September 2022 to 31 August 2023 and up to the date of approval of the annual report and financial statements.

Capacity to Handle Risk

The board of trustees has reviewed the key risks to which the School Trust is exposed together with the operating, financial and compliance controls that have been implemented to mitigate those risks. The board of trustees is of the view that there is a formal on-going process for identifying, evaluating and managing the academy trust’s significant risks that has been in place for the period 1 September 2022 to 31 August 2023 and up to the date of approval of the annual report and financial statements. The process is regularly reviewed by the board of trustees.

The Risk and Control Framework

The school’s trust system of internal financial control is based on a framework of regular management information and administrative procedures including the segregation of duties and a system of delegation and accountability. In particular, it includes:

Comprehensive budgeting and monitoring systems with an annual budget and periodic financial reports which are reviewed and agreed by the board of trustees;

Governance

20

MAHARISHI SCHOOL TRUST LIMITED

GOVERNANCE STATEMENT

for the year ended 31 August 2023

Governance continued

The board of trustees has considered the need for a specific internal audit function and has decided to appoint a new Responsible Officer from UHT Hacker Young, who heads up their internal audit services function for the education sector.

The Academy Trust Handbook states that all academy trusts must have a programme of internal scrutiny to provide independent assurance to the board that its financial and non-financial controls and risk management procedures are operating effectively. The trust must identify on a risk-basis (with reference to its risk register) the areas it will review each year, modifying its checks accordingly.

Review of Effectiveness

As Accounting Officer the Principal has responsibility for reviewing the effectiveness of the system of internal control. During the year in question the review has been informed by:

The Accounting Officer has been advised of the implications of the result of their review of the system of internal control by the finance and general purposes committee and a plan to address weaknesses (if relevant) and ensure continuous improvement of the system in place.

Approved by order of the board of trustees on 7 December 2023 and signed on its behalf by:

I Birnbaum Chair of Trustees

L Edwards Accounting Officer

21

MAHARISHI SCHOOL TRUST LIMITED

STATEMENT OF REGULARITY, PROPRIETY AND COMPLIANCE

As Accounting Officer of Maharishi School Trust Limited I have considered my responsibility to notify the academy trust board of trustees and the Education Funding Agency of material irregularity, impropriety and non-compliance with Education and Skills Funding Agency terms and conditions of funding received by the academy trust, under the funding agreement in place between the academy trust and the Secretary of State for Education. As part of my consideration I have had due regard to the requirements of the Academy Trust Handbook 2023 published 1 September 2021 and up-dated 31 August 2023.

I confirm that I and the academy trust board of trustees are able to identify any material irregular or improper use of funds of the academy trust, or material non-compliance with the terms and conditions of funding under the academy trust’s funding agreement and the Academy Trust Handbook 2023 published 1 September 2021 and up-dated 31 August 2023.

I confirm that no instances of material irregularity, impropriety or funding non-compliance have been discovered to date. If any instances are identified after the date of this statement, these will be notified to the board of trustees and Education and Skills Funding Agency.

L Edwards Accounting Officer 7 December 2023

22

MAHARISHI SCHOOL TRUST LIMITED

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The trustees (who act as governors of Maharishi School Trust Limited and are also the directors of the charitable company for the purposes of the company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with the Annual Accounts Direction issued by the Education Funding Agency, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

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

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

The trustees are responsible for ensuring that in its conduct and operation the charitable company applies financial and other controls, which confirm with the requirements both of propriety and of good financial management. They are also responsible for ensuring grants received from Education and Skills Funding Agency/Department for Education have been applied for the purposes intended.

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

Approved by order of the members of the board of trustees on 7 December 2023 and signed on its behalf by:

Signed

I Birnbaum Chair of Trustees

24

MAHARISHI SCHOOL TRUST LIMITED

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF MAHARISHI SCHOOL TRUST 31 August 2023

We have audited the financial statements of Maharishi School Trust Limited for the year ended 31 August 2023 on pages 28 to 54, which have been prepared on the basis of the accounting policies set out on pages 32 to 36.

This report is made solely to the charity's trustees, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's trustees 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 charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITORS

The responsibilities of the directors for preparing the Trustees Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and for being satisfied that the financial statements give a true and fair view are set out in the Statement of Responsibilities of the Trustees on page 23.

The trustees have elected for the financial statements to be audited in accordance with the Charities Act 2011 rather than the Companies Act 2006. Accordingly, we have been appointed as auditors under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland).

We report to you our opinion as to whether the financial statements give a true and fair view and have been prepared in accordance with the Companies Act 2006. We also report to you if, in our opinion, the information given in the Trustees Annual Report is not consistent with those financial statements, if the charity has not kept adequate accounting records, if the charity's financial statements are not in agreement with these accounting records and returns, or if we have not received all the information and explanations we require for our audit.

We read the Trustees Annual Report and consider the implications for our report if we become aware of any apparent misstatements within it.

24

MAHARISHI SCHOOL TRUST LIMITED

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF MAHARISHI SCHOOL TRUST 31 August 2023

BASIS OF AUDIT OPINION

We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the trustees in the preparation of the financial statements, and of whether the accounting policies are appropriate to the charity's circumstances, consistently applied and adequately disclosed.

We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion, we also evaluated the overall adequacy of the presentation of information in the financial statements.

OPINION

In our opinion:

 the financial statements give a true and fair view of the state of the charitable company's affairs as at 31 August 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; and

 the financial statements have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice, and in accordance with the Companies Act 2006;

 the financial statements have been prepared in accordance with the Charities SORP 2019 and the Academies Accounts Direction 2022 to 2023.

 the information given in the trustees’ report including the incorporated strategic report for the year for which the financial statements have been prepared is consistent with the financial statements.

C SALES (Senior Statutory Auditor) For and on behalf of

JVSA Ltd

Suite 205-209 Malthouse Business Park 48 Southport Road Ormskirk Lancashire L39 1QR

Chartered Accountants & Statutory Auditors

7 December 2023

25

MAHARISHI SCHOOL TRUST LIMITED

INDEPENDENT REPORTING AUDITOR’S ASSURANCE REPORT ON THE REGULARITY TO MAHARISHI SCHOOL TRUST LIMITED AND THE EDUCATION FUNDING AUTHORITY

In accordance with the terms of our engagement letter dated 20 November 2017 and further to the requirements of the Education and Skills Funding Agency (ESFA) as included in the Academies Accounts Direction 2022 to 2023, we have carried out an engagement to obtain limited assurance about whether the expenditure disbursed and income received by Maharishi School Trust Limited during the period 1 September 2022 to 31 August 2023 have been applied to the purposes identified by Parliament and the financial transactions conform to the authorities which govern them.

This report is made solely to Maharishi School Trust and the ESFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we might state to the Maharishi School Trust and the ESFA those matters we are required to state in a 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 Maharishi School Trust and the ESFA, for our work, for this report, or for the conclusion we have formed.

Respective responsibilities of Maharishi School Trust’s accounting officer and the reporting auditor

The accounting officer is responsible, under the requirements of Maharishi School Trust’s funding agreement with the Secretary of State Education dated 9 August 2011, the Deed of Variation dated 29 August 2014 and the Academy Trust Handbook, published 1 September 2021 and up-dated 31 August 2023, for ensuring that expenditure disbursed and income received is applied for the purposes intended by Parliament and the financial transactions conform to the authorities which govern them.

Our responsibilities for this engagement are established in the United Kingdom by our profession’s ethical guidance and are to obtain limited assurance and report in accordance with our engagement letter and the requirements of the Academies Accounts Direction 2022 to 2023. We report to you whether anything has come to our attention in carrying out our work which suggests that in all material respects, expenditure disbursed and income received during the period 1 September 2021 to 31 August 2023 have not been applied to purposes intended by Parliament or that the financial transactions do not conform to the authorities which govern them.

Approach

We conducted our engagement in accordance with the Academies Accounts Direction 2022 to 2023 issued by the ESFA. We performed a limited assurance engagement as defined in our engagement letter.

The objective of a limited assurance engagement is to perform such procedures as to obtain information and explanations in order to provide us with sufficient appropriate evidence to express a negative conclusion on regularity.

26

MAHARISHI SCHOOL TRUST LIMITED

INDEPENDENT REPORTING AUDITOR’S ASSURANCE REPORT ON THE REGULARITY TO MAHARISHI SCHOOL TRUST LIMITED AND THE EDUCATION AUTHORITY

A limited assurance engagement is more limited in scope than a reasonable assurance engagement and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in a reasonable assurance engagement. Accordingly, we do not express a positive opinion.

Our engagement includes examination, on a test basis, of evidence relevant to the regularity and propriety of the academy trust’s income and expenditure.

The work undertaken to draw our conclusion includes:

Conclusion

In the course of our work, nothing has come to our attention which suggests that in all material respects of the expenditure disbursed and income received during the period 1 September 2022 to 31 August 2023 has not been applied to purposes intended by Parliament and the financial transactions do not conform to the authorities which govern them.

C Sales Senior Statutory Auditor JVSA Ltd Chartered Accountants & Statutory Auditors

7 December 2023

27

MAHARISHI SCHOOL TRUST LIMITED

STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT AND STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES)

for the year ended 31 August 2023

Note
Incoming Resources
Incoming Resources
from generating
funds
Voluntary Income 3
Activities for
Generating funds 4
Investment
Income
5
Incoming Resources
from charitable
activities
Funding for the
Academy trust’s
educational
operations
6
Total Incoming
Resources
Resources expended
Costs of generating
Voluntary income9
Fundraising
Trading
8
Charitable activities
Academy’s
Educational
Operations
10
_Governance costs_11
Total resources
Expended
7
Net incoming/
(outgoing) resources
Before transfers		 Unrestricted
Funds
£
6,045

33,844
640
-
40,529
-
22,140
16,357
-		 Restricted
Funds
£
20,066
1,403,041
1,423,107
21,208
8,282
1,404,728
66,214		 Restricted Fixed
Asset Funds
£
28,906
28,906
-
-
-
-		 Restricted Fixed
Asset Funds
£
28,906
28,906
-
-
-
-		 Total Funds
2023
£
26,111
33,844
640
1,431,947
1,492,542
21,208
30,422
1,421,085
66,214		 Total Funds
2022
£
36,379
33,194
932
1,317,081
1,387,586
16,616
36,899
1,265,032
61,512
1,380,059
7,527
38,497
2,032		 1,500,432
(77,325)		 -
28,906		 1,538,929
(46,387)

28

MAHARISHI SCHOOL TRUST LIMITED

STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT AND STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES)

for the year ended 31 August 2023

Note
Net incoming/
(outgoing) resources
Before transfers
Gross transfers
Between funds
19
Net Income/(expenditure)
For the year
Other recognised gains
and losses
Actuarial
19,28

Net movement
In funds
Total funds
brought forward
19
Total funds carried
forward at
31 August		 Unrestricted
Funds
£
2,032
_-_
2,032
-
_____
2,032
141,984

144,016		 Restricted
Funds
£
(77,325)
15,145
(62,180)
-
__ ____
(62,180)
109,733
47,553		 Restricted Fixed
Funds
£
28,906
(15,145)
13,761
-
______
13,761
712,770
726,531		 Total Funds
2023
£
(46,387)
-
(46,387)
-
_
(46,387)
964,487
918,100		 Total Funds
2022
£
7,527

-_
7,527
490,000
____
497,527
466,960
964,487

All of the School’s activities derive from continuing operations during the above two financial periods. A Statement of Total Recognised Gains and Losses is not required as all gains and losses are included in the Statement of Financial Activities

29

MAHARISHI SCHOOL TRUST LIMITED BALANCE SHEET at 31 August 2023

2023
Notes
£
Fixed assets
Tangible assets
15

Current assets
Debtors
16 53,883
Cash at bank and in hand
276,801
_
330,684
Liabilities
Creditors: Amounts falling due within one year
17 134,219
______
Net current assets


Total assets less current liabilities

Pension scheme liability
27


Net assets including pension liability


Funds of the academy trust:
Restricted income funds
. Fixed asset fund
18
. General fund
18
. Pension reserve
18

Total restricted funds

Unrestricted income funds
. General fund
18

Total funds
 2023
2022
2022
£
£
£
721,635
732,846
26,052
252,577
__
278,629
46,988
_
196,465
231,641
___
_
918,100
964,487
-
-
_____
_
918,100
964,487
__
__
726,531
712,770
47,553
109,733

-
_ _
774,084
822,503
144,016
141,984
_
_
918,100
964,487

_ _ The financial statements on pages 28 to 54 were approved by the trustees, and authorised for issued on 7 December 2023 and are signed on their behalf by:

Ian Birnbaum, Chairman

30

MAHARISHI SCHOOL TRUST LIMITED

CASH FLOW STATEMENT for the year ended 31 August 2023

2023 2022
Note £ £
Net cash flow from operating activities 22 38,704 57,071
Returns on investments and servicing of finance 23 640 932
Capital expenditure 24 (15,120) (7,594)
______ _
Increase in cash in the year 25 24,224 50,409
______ _
Reconciliation of net cash flow to movement in net funds
Net funds at 1 September 2022 252,577 202,168
_ _
Net funds at 31 August 2023 276,801 252,577
_ _

31

MAHARISHI SCHOOL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2023

1. Statement of Accounting Policies

Basis of Preparation

The financial statements of the academy trust, which is a public benefit entity under FRS 102, have been prepared under the historic cost convention and 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 Academies Accounts Direction 2022 to 2023 issued by the ESFA, the Charities Act 2011 and the Companies Act 2006.

Maharishi School Trust Limited meets the definition of a public benefit entity under FRS 102. A summary of the principal accounting policies, which have been applied consistently, except where noted, is set out below.

Going Concern

The governors assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the company to continue as a going concern. The governors make this assessment in respect of a period of one year from the date of authorisation for issue of the financial statements and have concluded that the academy trust has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the academy trust’s ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

Incoming resources

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 meeting any performance-related conditions there is not unconditional entitlement to the income and its recognition is deferred and included in creditors as deferred income until the performance-related conditions are met. Where entitlement occurs before income is received the income is accrued.

General Annual Grant is recognised in full in the year for which it is receivable and any unspent amount is reflected as a balance in the restricted general fund. Capital grants are recognised when receivable and are not deferred over the life of the asset on which they are expended. Unspent amounts of capital grant are reflected in the balance in the restricted fixed asset fund.

Sponsorship income

Sponsorship income provided to the Academy which amounts to a donation is recognised in the statement of financial activities in the period in which it is receivable, where there is certainty of receipt and it is measurable.

32

MAHARISHI SCHOOL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2023

1. Statement of Accounting Policies (continued)

Donations

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

Interest receivable

Interest receivable is included within the statement of financial activities on a receivable basis.

Other Income

Other income, including the hire of facilities, is recognised in the period it is receivable and to the extent the goods have been provided or on completion of the service.

Donated Service and Gifts in Kind

The value of donated services and gifts in kind provided to the academy trust are recognised at their open market value in the period in which they are receivable as incoming resources, where the benefit to the academy trust 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 academy trust’s policies.

Resources Expended

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

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

Charitable Activities

These are costs incurred on the academy trust’s educational operations.

Governance Costs

These include the costs attributable to the academy trust’s compliance with constitutional and statutory requirements, including audit, strategic management and trustee’s meetings and reimbursed expenses.

All resources expended are inclusive of irrecoverable VAT.

33

MAHARISHI SCHOOL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2023

1. Statement of Accounting Policies (continued)

Tangible Fixed Assets

Assets costing £15,120 are capitalised as tangible fixed assets and are carried at cost, net of depreciation and any provision for impairment.

Where tangible fixed assets have been acquired with the aid of specific grants, either from the government or from the private sector, they are included in the Balance Sheet at cost and depreciated over their expected useful economic life. The related grants are credited to a restricted fixed asset fund in the Statement of Financial Activities and carried forward in the Balance Sheet. Depreciation on such assets is charged to the restricted fixed asset fund in the Statement of Financial Activities so as to reduce the fund over the useful economic life of the related asset on a basis consistent with the academy trust’s depreciation policy.

Depreciation is provided on all tangible fixed assets other than freehold land, at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life, as follows:

o Freehold buildings
 1%-25% Straight Line
o Fixtures, fittings and equipment 25% Straight Line
o ICT equipment 33% Straight Line
o Minibus (included within equipment) 25% Straight Line

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

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

Leased assets

Rentals under operating leases are charged on an actual basis over the lease term.

Taxation

The academy trust is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the academy trust is 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 of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

34

MAHARISHI SCHOOL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2023

1. Statement of Accounting Policies (continued)

Pension Benefits

Retirement benefits to employees of the academy trust are provided by the Teachers’ Pension Scheme (‘TPS’) and the Local Government Pension Scheme (‘LGPS’). These are defined benefit schemes.

The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees’ working lives with the academy trust 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 prospective unit credit method. As stated in Note 27, the TPS is a multi-employer scheme and there is insufficient information available to use defined benefit accounting. The TPS is therefore treated as a defined contributions scheme for accounting purposes and the contributions recognised in the period to which they relate.

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

Actuarial gains and losses are recognised immediately in other recognised gains and losses.

Fund Accounting

Unrestricted income funds represent those resources which may be used towards meeting any of the charitable objects of the academy trust at the discretion of the trustees.

Restricted fixed asset funds are resources which are to be applied to specific capital purposes imposed by funders where the asset acquired or created is held for a specific purpose.

Restricted general funds comprise all other restricted funds received with restrictions imposed by the funder/donor and include grants from the Education Funding Agency on behalf of the Department for Education.

35

MAHARISHI SCHOOL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2023

1. Statement of Accounting Policies (continued)

Critical accounting estimates and areas of judgement

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

Critical accounting estimates and assumptions

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

The present value of the Local Government Pension Scheme defined benefit liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate. Any changes in these assumptions, which are disclosed in note 27, will impact the carrying amount of the pension liability. Furthermore, a roll forward approach which projects results from the latest full actuarial valuation performed at 31 March 2022 has been used by the actuary in valuing the pensions liability at 31 August 2023. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of any pension liability.

36

MAHARISHI SCHOOL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2023

2023 2022
£ £
2 GENERAL ANNUAL GRANT (GAG)
a. Results and Carry Forward for the Year
GAG brought forward from last year 73,556 78,712
GAG allocation for current year 1,322,628 1,265,899
_ _
Total GAG available to spend 1,396,184 1,344,611
Recurrent expenditure from GAG 1,367,360 1,271,055
_ _
GAG carried forward to next year £28,824 £73,556

The Education & Skills Funding Agency (“ESFA”) will report to the Department for Education (DFE) if the GAG carried forward becomes substantial with no clear plans for its use. The Trustees do not believe that ESFA will consider this to be the case.

3 VOLUNTARY INCOME

3
VOLUNTARY INCOME
Unrestricted Restricted Total Total
Funds Funds 2023 2022
£ £ £ £
Private sponsorship and donations
Miscellaneous donations 6,045 - 6,045 4,703
Duke of Edinburgh - 2,579 2,579 2,159
Edna Linnell Legacy - 12,410 12,410 23,173
Miscellaneous Income - 5,077 5,077 6,344
______ _ ______ _
6,045 20,066 26,111 36,379

__ _ ____

37

MAHARISHI SCHOOL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2023

4
ACTIVITIES FOR GENERATING FUNDS
Unrestricted Restricted
Funds
Funds
£
£
Fundraising
7,928

Pupil Trips
10,180
Uniform Sale
548

Out of Hours Income
12,694

Catering Income
1,515

Bus Transfer Income
863

Recipe Book
116
___ __
33,844
-
______
_______
5
INVESTMENT INCOME
Unrestricted Restricted
Funds
Funds
£
£
Bank Interest
640
__ -___
6
FUNDING FOR THE ACADEMY’S EDUCATIONAL OPERATIONS
Unrestricted Restricted
Funds
Funds
£
£
DfE/ESFA grants
General Annual Grant (GAG) (note 2)
- 1,322,628
__
_
- 1,322,628
_
_ ___
Other Government Grants
-
80,413
_ _
____ - 1,403,041






Total
2023
£
7,928
10,180
548
12,694
1,515
863
116
33,844
___ ___
Total
2023
£
 640_
Total
2023
£
1,322,628
_
1,322,628
_
80,413
_ _
1,403,041		 Total
2022
£
7,617
7,656
274
14,984
1,010
1,404
249
33,194

Total
2022
£
932
Total
2022
£
1,265,899
__
1,265,899
__
44,364
 _
1,310,263










38

MAHARISHI SCHOOL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2023

7 RESOURCES EXPENDED

Staff
Costs Non Pay Expenditure Total Total
Other
Premises Costs 2023 2022
£ £ £ £ £
Costs of activities for generating funds 10,046
-		 20,376 30,422 36,899
Costs of generating voluntary income
-
 - 21,208 21,208 16,616
Academy’s educational operations
. Direct costs
 903,167 26,331 140,043 1,069,541 991,776
. Allocated support costs 253,119 53,500 44,925 351,544 273,256
_ ______ _ _ _
1,166,332 79,831 226,552 1,472,715 1,318,547
_ ______ _ _ _
Governance costs including
allocated support costs 47,853 - 18,361 66,214 61,512
_ ______ _ _ _
1,214,185 79,831 244,913 1,538,929 1,380,059
__ ______ _ _ _
Incoming /outgoing resources for the year
Include: 2023 2022
£ £
Fees payable to auditor - audit 6,050 5,100
- other services 4,350 3,113
_ _ ____
£10,400 £8,213
______ _____

8 CHARITABLE ACTIVITIES – COSTS OF ACTIVITIES FOR GENERATING FUNDS

Unrestricted Restricted Total Total
Funds Funds 2023 2022
£ £ £ £
Catering 9,549 5,121 14,670 14,031
Uniforms 306 306 154
Marketing 2,239 3,161 5,400 2,881
Support staff costs 10,046 10,046 19,833
______ _ _ _
22,140 8,282 30,422 36,899
_ _ ______ _

39

MAHARISHI SCHOOL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2023

9 CHARITABLE ACTIVITIES – COSTS OF GENERATING VOLUNTARY INCOME

Unrestricted
Restricted
Total
Funds
Funds
2023
£
£
£
TM Teaching
19,475
19,475
Duke of Edinburgh
1,733
1,733
_
_
_
-
21,208
21,208
_
_
_
10
CHARITABLE ACTIVITIES – ACADEMY’S EDUCATIONAL OPERATIONS
DIRECT COSTS
Unrestricted
Restricted
Total
Funds
Funds
2023
£
£
£
Teaching and educational support staff costs
903,167
903,167
Depreciation
26,331
26,331
Technology costs
17,206
17,206
Books, apparatus and stationery
41,115
41,115
Examination expenses
8,015
8,015
Staff development 4,179
4,179
Educational Visits
6,691 -
6,691
Other direct costs
9,211
53,626
62,837
_
_
_
15,902
1,053,639 1,069,541
_
_
_
ALLOCATED SUPPORT COSTS
Support staff costs
253,119
253,119
Pupil recruitment and support
455
455
Maintenance of premises and equipment
24,170
24,170
Cleaning
13,934
13,934
Rates
7,076
7,076
Heat and light
27,630
27,630
Insurance
5,255
5,255
Telephone
5,317
5,317
Transport
8,987
8,987
Technology costs
14
14
Bank charges
212
212
Other support costs
5,375
5,375
_
_
_
455
351,089
351,544
_
_
_
ACADEMY’S EDUCATIONAL OPERATIONS
16,357
1,404,728 1,421,085		 Total
2022
£
13,034
3,582
_
16,616
_
Total
2022
£
825,022
26,296
23,735
42,857
6,305
2,185
5,521
59,855
_
991,776
_
216,352
266
12,156
12,187
7,003
7,770
4,081
2,359
4,719
805
(202)
5,760
_
273,256
_
1,265,032

40

MAHARISHI SCHOOL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 August 2023

11
GOVERNANCE COSTS
Unrestricted
Restricted		 Total Total
Funds Funds 2023 2022
£ £ £ £
Legal and professional fees - 7,961 7,961 10,012
Auditor’s remuneration
. Audit of financial statements - 6,050 6,050 5,100
. Other audit costs - 4,350 4,350 3,113
Support Staff Costs - 47,853 47,853 43,287
_ _ _ _
- 66,214 66,214 61,512
_ _ _ _
12
STAFF COSTS
Staff costs comprise: 2023 2022
£ £
Wages and salaries 889,053 801,904
Social security costs 79,051 52,074
Other pension costs 184,458 175,947
_ _
1,152,562 1,029,925
Supply teacher costs 51,577 51,684
Other Supply costs 10,046 19,834
Cleaning costs - 3,051
TM teaching costs 19,475 13,032
_ _
1,233,660 1,117,526

41

MAHARISHI SCHOOL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 August 2023

12 STAFF COSTS (continued)

The average number of persons (including senior management team) employed by the Academy during the year ended 31 August 2023 expressed as full time equivalents was as follows:

Charitable Activities

Charitable Activities
2023 2022
No. No.
Teachers 14 12
Administration and support (including Teaching Assistants) 17 15
Management 3 3
__ __
34 30

No employees earned more than £60,000 per annum (including taxable benefits but excluding employers’ pension contributions) during the year ended 31 August 2023 (2022 : none).

13 RELATED PARTY TRANSACTIONS – TRUSTEES’ REMUNERATION & EXPENSES

The principal and other staff trustees only receive remuneration in respect of services they provide undertaking the roles of principal and staff, and not in respect of their services as trustees. Other trustees did not receive any payments, other than expenses, from the academy trust in respect of their role as trustees. The value of trustees’ remuneration was as follows:

L Edwards (principal and trustee): £45,000 - £50,000 (2022: £45,000 - £50,000)
M Ingram (Head of Cbe, Secondary and trustee): £25,000 - £30,000 (2022: £25,000 - £30,000)
L Walters (Deputy Head and trustee): £40,000 - £45,000 (2022: £35,000 - £40,000)
L Gaskell (Deputy Head (Primary) and trustee) £40,000 - £45,000 (2022: £35,000 - £40,000)

During the year ended 31 August 2023, no travel and subsistence expenses were reimbursed to the trustees (2022: £Nil).

Other related party transactions involving the trustees are set out in note 28.

14 TRUSTEES’ AND OFFICERS’ INSURANCE

In accordance with normal commercial practice the academy has purchased insurance to protect trustees and officers from claims arising from negligent acts, errors or omissions occurring whilst on academy business. The insurance provides cover up to £10 million on any one claim and the cost for the year ended 31 August 2023 was £681 (2022: £681).

The cost of this insurance is included in the total insurance costs.

42

MAHARISHI SCHOOL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2023

15 TANGIBLE FIXED ASSETS

Freehold
Computer
Land and
Furniture & Equipment
Buildings
Equipment
& Software
£
£
£
Cost
At 1 September 2022
891,030 131,041
300,391

Additions
-
10,523
4,597
_
_
_

At 31 August 2023
891,030
141,564
304,988

_
_
_

Depreciation
At 1 September 2022
167,684
129,563
292,369
Charged in year
13,035
3,924
9,372
_
_
_
At 31 August 2023
180,719
133,487
301,741
_
_
_
Net book values
At 1 September 2022
723,346
1,478
8,022
_
_
_
At 31 August 2023
710,311
8,077
3,247
_
_
_
16
DEBTORS
2023
£
Trade Debtors
2,711
Other Debtors
9,206
Prepayments and accrued income
41,966
__
53,883
_
17
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023
£
Trade creditors
55,851
Other creditors
64,531
Accruals
7,787
Deferred income
6,050
_
134,219
____		 Total
£
1,322,462
15,120
__ _
1,337,582
_
589,616
26,331
_
615,947
_
732,846
_
721,635
_
2022
£
5,554
7,793
12,705
_
26,052

2022
£
12
32,221
7,875
6,880
_
46,988
____

43

MAHARISHI SCHOOL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 August 2023

17 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR (continued)

Deferred income 2023 2022
£ £
Deferred Income at 1 September 2022 6,880 25,949
Resources deferred in the year 6,050 6,880
Transferred to Capital Grants (6,880) -
Amounts released from previous year - (25,949)
_ _
Deferred Income at 31 August 2023 £6,050 £6,880
_ _

18 FUNDS

18
FUNDS
Balance Gains
 Balance at
1 September Incoming Resources losses and 31 August
2022 resources Expended Transfers 2023
£ £ £ £
 £
Restricted general funds
General Annual Grant (GAG)
73,556		 1,322,628 1,582,505 15,145 28,824
Other Government Grant - 80,413 80,413 - -
Edna Linell – TM Teaching 23,570 12,410 19,475 - 16,505
Erasmus/Europe Project 1,090 - - - 1,090
Chromebooks/Photography 11,229 5,077 16,306 - -
Duke of Edinburgh 288 2,579 1,733 - 1,134
__ __ ____ __ _____ _
109,733 1,423,107 1,500,432 15,145 47,553
Restricted general funds before
Pension Reserve - - - - -
_ _ _ _ _
109,733 1,423,107 1,500,432 15,145 47,553
_ _ _ _ _
Restricted fixed asset funds
DfES capital grants 712,770 28,906 - (15,145) 726,531
_ __ _____ _ _ _
Total Restricted Funds 822,503 1,452,013 1,500,432 - 774,084
Unrestricted funds
Unrestricted funds 141,984 40,529 38,497 - 144,016
_ __ __ _ __ _
964,487 1,492,542 1,538,929 - 918,100
_ ___ ____ __ _____ _ ____ __

44

MAHARISHI SCHOOL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 August 2023

18 FUNDS (continued)

The specific purpose for which the funds are to be applied are as follows:

The trust is carrying a net surplus of £47,553 on restricted funds (excluding pension reserve and restricted fixed asset funds) plus the balance of £144,016 on unrestricted funds at 31 August 2023.

19 ANALYSIS OF NET ASSETS BETWEEN FUNDS

Fund balances at 31 August 2023 are represented by:

Restricted Restricted
Unrestricted General Fixed asset
Funds Funds
Funds		 Total
Tangible fixed assets - -
721,635		 721,635
Current assets 278,235 47,553
4,896		 330,684
Current Liabilities (134,219) -
-		 (134,219)
_ __ __
144,016 47,553
726,531		 918,100
_ _
_		 _

45

MAHARISHI SCHOOL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 August 2023

20 CAPITAL COMMITMENTS

The academy trust has no large future capital commitments planned at present.

21 FINANCIAL COMMITMENTS

Operating Leases

At 31 August 2023 the academy trust had annual commitments under non-cancellable operating leases as follows:

leases as follows:
2023 2022
£ £
Other
Expiring within two to five years inclusive - -
Expiring in over five years- - -
_____ ___
- -
_____ ___
22 RECONCILIATION OF NET INCOME TO NET CASH INFLOW
FROM OPERATING ACTIVITIES
2023 2022
£ £
Net (expenditure)/income (46,387) 7,527
Depreciation (note 15) 26,331 26,296
Interest receivable (note 5) (640) (932)
Defined benefit pension scheme cost less contributions payable - -
(Increase)/decrease in debtors (27,831) 42,298
Increase/(decrease) in creditors 87,231 (18,118)
_ _
Net Cash Inflow/(Outflow) from Operating Activities 38,704 57,071
_ _

46

MAHARISHI SCHOOL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 August 2023
23 RETURNS ON INVESTMENTS AND SERVICING FINANCE
2023 2022
£ £
Interest received 640 932
_____ _____
Net cash inflow from returns on investment and servicing of
Finance 640 932
_____ _____
24 CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT
2023 2022
£ £
Purchase of tangible fixed assets 15,120 7,594
______ ______
Net cash outflow from capital expenditure and financial
Investment 15,120 7,594
______ ______
25 ANALYSIS OF CHANGES IN NET FUNDS
At 31
At 1 September August
2022 Cash flows
 2023
£ £ £
Cash in hand and at bank 252,577 24,224 276,801
_ ______ _
252,577 24,224 276,801
_ ______ _

26 MEMBERS LIABILITY

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

47

MAHARISHI SCHOOL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 August 2023

27 PENSION AND SIMILAR OBLIGATIONS

The academy trust’s employees belong to two principal pension schemes: The Teachers’ Pension Scheme England and Wales (TPS) for academic and related staff; and the Local Government Pension Scheme (LGPS) for non-teaching staff, which is managed by Lancashire County Pension Fund. Both are multi-employer defined benefit schemes.

The pension costs are assessed in accordance with the advice of independent qualified actuaries. The latest actuarial valuation of the TPS related to the period ended 31 March 2020 and the LGPS 31 March 2022.

Contributions amounting to £34,236 (2022 - £14,873) were payable to the schemes at 31 August 2023 and are included within creditors.

Teachers’ Pension Scheme

Introduction

The Teachers’ Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pensions 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 to which both the member and employer makes contributions, as a percentage of salary-these contributions are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

Valuation of Teachers’ Pension Scheme

The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2020. The valuation report was published by the Department for Education on 26 October 2023. The key elements of the valuation and subsequent consultation are:

48

MAHARISHI SCHOOL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 August 2023

27 PENSION AND SIMILAR OBLIGATIONS (continued)

Valuation of Teachers’ Pension Scheme (continued)

The pension costs paid to TPS in the period amounted to £109,204 (2022 - £109,886).

A copy of the valuation report and supporting documentation is on the Teachers’ Pensions website.

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

49

MAHARISHI SCHOOL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 August 2023

27 PENSION AND SIMILAR OBLIGATIONS (continued)

LOCAL GOVERNMENT PENSION SCHEME

The LGPS is a funded defined benefit pension scheme, with the assets held in separate trusteeadministered funds. The total contribution made for the year ended 31 August 2023 was £80,310 (2022 - £85,709), of which employer’s contributions totalled £62,301 (2022 - £68,797) and the employees’ contributions totalled £18,009 (2022 - £16,912). The agreed contribution rates for future years are 16.7 percent for employers and range from 5.5 per cent to 6.8 per cent 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 of Education. The guarantee came into force on 18 July 2013.

PRINCIPAL ACTUARIAL ASSUMPTIONS

PRINCIPAL ACTUARIAL ASSUMPTIONS
At 31 At 31
August August
2023 2022
Rate of increase in salaries 4.3% 4.3%
Rate of increase for pensions in payment/inflation 2.9% 2.9%
Discount rate for scheme liabilities 5.3% 4.3%
Inflation assumption (CPI) 2.8% 2.8%
Commutation of pensions to lump sums
-Maximum Cash 50.0% 50.0%
-3/80ths Cash 50.0% 50.0%

50

MAHARISHI SCHOOL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 August 2023

27 PENSION AND SIMILAR OBLIGATIONS (continued)

LOCAL GOVERNMENT PENSION SCHEME (continued)

PRINCIPAL ACTUARIAL ASSUMPTIONS (continued)

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

At 31 At 31
August August
2023 2022
Retiring today
Males 21.0 22.3
Females 23.4 25.0
Retiring in 20 years
Males 22.2 23.7
Females 25.2 26.8

Sensitivity analysis shows how the measurement of the schemes liabilities would be affected by changes in the relevant assumptions.

At 31 At 31
August August
2023 2022
£000 £000
Sensitivity Analysis
Discount Rate +0.1% (15) (18)
CPI rate +0.1% 15 19
Mortality assumption – 1-year increase 15 17
Pay growth +0.1% 15 -

51

MAHARISHI SCHOOL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 August 2023

27 PENSION AND SIMILAR OBLIGATIONS (continued)

LOCAL GOVERNMENT PENSION SCHEME (continued)

The academy’s share of the assets in the scheme were:
Fair value at
31 August
2023
Equities
455,000
Other Bonds
4,000
Property
89,000
Cash/Liquidity
6,000
Other
386,000
Total market value of assets
£940,000
The actual return on scheme assets was £17,000 (2022: £54,000)
AMOUNTS RECOGNISED IN THE STATEMENT OF FINANCIAL ACTIVITIES
2023
Current service cost (net of employee contributions)
-
_
Total operating charge -
Analysis of pension finance income/(costs)
Expected return on pension scheme assets
-
Interest on pension liabilities -
Pension finance-		 Fair value at
31 August
2022
401,000
37,000
92,000
14,000
304,000
848,000
2022
(140,000)
___ _
(140,000)
13,000
(20,000)
(7,000)		 Fair value at
31 August
2022
401,000
37,000
92,000
14,000
304,000
848,000
2022
(140,000)
___ _
(140,000)
13,000
(20,000)
(7,000)

The actuarial gains and losses for the current year are recognised in the statement of financial activities, to the extent that there is a deficit in the Scheme. If the Scheme is in surplus, the Trustees will consider the position at each year end. Currently the Trustees consider that the uncertain economic climate means that it would be imprudent to recognise the surplus in the Financial Statements. The cumulative amount of actuarial gains and losses recognised in the statement of financial activities since the adoption of FRS 17 is a gain of £202,000 (2022: £202,000).

52

MAHARISHI SCHOOL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 August 2023

27 PENSION AND SIMILAR OBLIGATIONS (continued)

LOCAL GOVERNMENT PENSION SCHEME (continued)
Movements in the present value of defined benefit
Obligations were as follows
2023 2022
£ £
At 1 September 2022 834,000 1,180,000
Current service cost (net of employee contributions) 86,000 140,000
Interest cost
 36,000 20,000
Employee contributions
 19,000
17,000
Past Service Cost (gain) - -
Actuarial (gain)/loss (136,000) (546,000)
Benefits/Transfers Paid (11,000) 23,000
__ _ __ _
At 31 August 2023 828,000 834,000
______ _
Movements in the fair value of academy’s share of scheme assets:
2023 2022
£
£
At 1 September
848,000		 690,000
Interest Income 38,000 13,000
Actuarial gain/(loss)
(19,000)		 43,000
Administration Expenses (2,000) (2,000)
Employer contributions
67,000		 64,000
Employee contributions
19,000		 17,000
Benefits Paid
(11,000)		 23,000
___ __
At 31 August 2023 940,000 848,000
Surplus in Scheme at 31 August 2023 112,000 14,000
_ ____ ____ __

53

MAHARISHI SCHOOL TRUST LIMITED

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 August 2023

28 RELATED PARTY TRANSACTIONS

No related party transactions took place in the period of account.

Owing to the nature of the academy trust’s operations and the composition of the board of trustees being drawn from local public and private sector organisations, transactions may take place with organisations in which a trustee has an interest. Any transactions involving such organisations are conducted at arm’s length and in accordance with the academy trust’s financial regulation and normal procurement procedures.

54