CANONS HIGH SCHOOL (A COMPANY LIMITED BY GUARANTEE...

Company Registration No. 07694362 (England and Wales)

CANONS HIGH SCHOOL

(A COMPANY LIMITED BY GUARANTEE)

GOVERNORS' REPORT AND AUDITED ACCOUNTS

FOR THE YEAR ENDED 31 AUGUST 2017

CANONS HIGH SCHOOL

CONTENTS

Page

Reference and administrative details 1

Governors' report 2 - 8

Governance statement 9 - 12

Statement on regularity, propriety and compliance 13

Statement of Governors' responsibilities 14

Independent auditor's report on the accounts 15 - 16

Independent reporting accountant's report on regularity 17 - 18

Statement of financial activities including income and expenditure account 19 - 20

Balance sheet 21

Statement of cash flows 22

Notes to the accounts including accounting policies 23 - 40

CANONS HIGH SCHOOL

REFERENCE AND ADMINISTRATIVE DETAILS

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Governors K Rutter (Chair)

K Bartle (Accounting Officer)

H Patel

A Hickin

D Inyang

N Cain

R Warshaw

S Wright

A Mawson

A Pitsillis

J Brennan

D Raithatha

D Khagram

A Brightwell

Members

A Brightwell

A Hickin

K Rutter

Senior management team

- Headteacher K Bartle

- Deputy Headteacher J Aitken

- Deputy Headteacher R Joseph

- Deputy Headteacher K Millar

- Assistant Headteacher B Green

- Assistant Headteacher G Jones

- Assistant Headteacher L Markey

- Assistant Headteacher S Wilkinson

- Business Manager S Newton

Company secretary S Newton

Company registration number 07694362 (England and Wales)

Registered office Shaldon Road

Edgware

Harrow

London

HA8 6AN

Independent auditor Alliotts

Friary Court

13-21 High Street

Guildford

Surrey

GU1 3DL

CANONS HIGH SCHOOL

GOVERNORS' REPORT


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The Governors who act as trustees for charity law purposes, present their annual report together with thefinancial statements and independent auditor's reports of the charitable company for the period 1 September2016 to 31 August 2017. The annual report serves the purposes of both a trustees’ report, and a directors’ reportunder company law.

The Academy operates an academy for pupils aged 11 to 19 serving a catchment area in the London Bo rough ofHarrow. It has a pupil capacity of 1280 and had a roll of 1198 in the school census on 1 October 2016.

Structure, governance and management

Constitution

Canons High School (The Academy) was formed in 2011 as a company limited by guarantee and an exemptcharity. The charitable company's memorandum and articles of association are the primary governingdocuments of the Academy.

The members of the governing body are the legal members of the charitable company. The trustees of CanonsHigh School are also the directors of the charitable company for the purposes of company law.

Details of the Governors who served during the year except as noted are included in the Reference andAdministrative Details on page 1.

Members' liability

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

Governors' indemnities

In accordance with standard practice, the Academy has purchased insurance to protect the trustees, governorsand officers of the company from the claims arising from negligent acts, errors or omissions whilst on Academybusiness. The cover under the policy is £1 million and in the period under review the policy premium was £572.

Method of recruitment and appointment or election of Governors

The Academy looks to ensure a mix of skills and selects new governors on the basis of background, experienceand specialist skills. Governors are recruited from academy contacts including parents and staff.

The Academy looks to maintain governors with a wide range of skills and experiences including the following:

A member with a legal background.

A member with a financial/accounting background.

A member with education experience.

A member with senior managerial or business experience.

A member with estates experience.

It is likely that members will have expertise in more than one of these areas.

Policies and procedures adopted for the induction and training of Governors

Governors are provided with induction training and a wider programme of training events is organisedaccording to needs.

CANONS HIGH SCHOOL

GOVERNORS' REPORT (CONTINUED)


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Organisational structure

The day-to-day administration is undertaken within the policies and procedures written by the Board andapproved by the governors, which provide for significant personnel and expenditure decisions and major capitalprojects to be referred to the governors for prior approval. These policies and procedures are based on guidancefrom DfE.

The governors meet at least 4 times a year and delegate responsibilities to a number of sub-committees,including Finance, Professionalism and Partnership, Curriculum, and Pedagogy, Students and Achievementcommittees. Each committee works under the guidance of a trustee governor, appointed at the first committeemeeting of the academic year. Written terms of reference are reviewed once a year and the clerk to Governorsco-ordinates the work of the governors and committees.

Arrangements for setting pay and remuneration of key management personnel

‘Key management personnel’ include all governors and the senior leadership team, which comprises:Headteacher –Keven BartleDeputy Headteachers –Jill Aitken, Renata Joseph, Karen MillarAssistant Headteachers –Brian Green, Gareth Jones, Laura Markey, Sarah WilkinsonSenior Leaders –Simon Newton, Sue O’Grady

Governors do not receive any remuneration. The Senior Leadership team’s remuneration is set by the Head,except that the Head’s remuneration is set by the Chair of Governors. These are ratified by the Governor’sPay Committee, in line with the Academy’s Pay Policy.

Related parties and other connected charities and organisations

The Academy is one of seven member academies of The Jubilee Academy, which has been set up to providealternative education provision in the London Borough of Harrow. Karen Millar was a Governor of Pinner HighSchool for part of the year. Rebecca Howard (staff member) is a Governor of Edgware Primary School.

Objectives and activities

Objects and aims

The company's objects, as set out in the Memorandum of Association, are to advance for the public benefiteducation in the United Kingdom, in particular but without prejudice to the generality of the foregoing byestablishing, maintaining, carrying on, managing and developing the school offering a broad curriculum with astrong emphasis, but in no way limited to one or a combination of the specialisms specified in the fundingagreements entered into between the Company and the Secretary of State for Education ("Secretary of State").

Within the objects, the Academy aims to create an environment to nurture children, to get the best from themand to allow them to develop and fulfil their potential. We aim to provide students with a first class education anda wide range of opportunities. This is done in a way which is consistent with the ethos that every child will bevalued, respected and cared for, and through a daily moral purpose to provide the best learning experience forall.

The objective is to provide education for students of all abilities between the ages of 11 and 19. All children whoapply are admitted (up to the capacity of the Academy), with no selection.

Consistent with other academies in the United Kingdom we aim to raise the educational outcomes from thelevels inherited from the predecessor school, and to increase student numbers.

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Objectives, strategies and activities

The objectives of the academy are to sustain and increase the pace of improvement so taking Canons HighSchool from ‘Outstanding’ to becoming a genuinely ‘Great’ school.

TheSpiritofCanonsisonethatrecognisesandcelebratestheindividualityofeachstudent,colleague,familymemberandcommunitypartner.Oursisastorywithdifferentmeaningsforeachstoryteller.Whatbindsthesestoriestogetherisoursenseofvision,ourgoalsandourprinciples.

Our Vision: At the heart of our community, with community at our heart.

Our Goals:Great Achievement – We will all be successful, attaining highly and progressing well, in order to fulfil ouraspirations and empower ourselves. We will act confidently whilst showing responsibility and care for theachievement of others.

Great Learning –We will all meet the challenges of self-improvement, seizing the opportunities to which we areentitled whilst also seeking personal enrichment. We will go beyond our own needs and engage with thelearning of others.

Great Professionalism – We will all be effective in our roles, developing our expertise and leadership skills inresearch-focused and evaluative ways. We will innovate in ways that harness and enhance the commitmentand professionalism of others.

Great Partnerships –We will all participate in collaborative relationships that are mutually beneficial, enhancingour combined capacity and our collective reputation. We will act at the centre of networks that generate furtherpartnerships with others.

Our Values:Our work is sustainable. We ensure that we continuously build upon what already works.

Our work is holistic. We understand that collectively we are more than the sum of our parts.

Our work is authentic. We know that credible educators must also be trusted as learners.

Our work is purposeful. We are resolute in ensuring that we achieve our desired outcomes.

Our work is ethical. We prioritise the equity and fairness that creates a caring community.

Public benefit

In setting objectives and planning activities, the trustees have given careful consideration to the CharityCommission’s general guidance on public benefit and in particular to its supplementary public benefi t guidanceon advancing education. The Academy also makes its facilities available to the community outside of educationalhours at reduced rates and is heavily used by all sections of the local community.

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Strategic reportAchievements and performance

During the last 12 month period the academy educated approximately 1198 students between the ages of 11and 19. Recruitment for Year 7 students was at the highest level ever, with a waiting list for places for September2017, despite the increase in PAN to 210 from September 2016. Canons also established a new partnershipwith Barnet Football Club in September 2016. This included delivering educational provision on behalf of LeagueFootball Education and Barnet FC for their ‘scholars’. It also encompassed a partnership with the BarnetAcademy which saw students studying in Canons 6th form whilst training and playing football to a professionalstandard. This partnership had a positive impact on Post 16 numbers.

Canons High School provided an outstanding standard of education and this was supported by the academicresults at KS4 and KS5.

At KS5 25.7% of entries were A*-A, 48.7% were A*-B, 70.6% were A*-C, these results meant that our Year 13students were able to access the next steps, whether that was to the university of their choice or intoemployment or apprenticeships. There are changes at KS5 with the new linear A ‘Level exams and changes atAS Level which are certainly creating more challenge for 6th forms across the country

At KS4, the changes to GCSE exams especially in English and Maths with the changes from A-G to 9-1 madeunderstanding the results comparatively more difficult. The attainment 8 score was 45.06, English and Maths(9-4) was 61%. We saw

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Music with 33% A*-A and 86% A*-C.RS with 43% A*-A and 91% A*-C.History with 44% A*-A and 88% A*-C from mainly Y9 and Y10 students.Computing and ICT with achievement above 15% A*-A and 75% A*-C.Engineering BTEC with 41% A*-A and 77% A*-C.H&SC with 25% A*-A and 75% A*-C despite toughening up of BTECS including introduction of exams.Languages at A*-A - French 28%, Italian 48% and Spanish 33% (plus two of those with over 75% ofstudents at A*-C)

We expect to have very strong numbers in 6th form on the back of these strong results.

Key performance indicators

The Academy was rated ‘Outstanding’ in all categories by Ofsted who inspected in 2013. This follows a similarjudgement in 2010.

Canons was awarded Teaching School status in 2014, as part of the Canons Park Teaching School Alliance withPark High School, this sees Canons continuing to work with strategic partners including the Specialist Schoolsand Academies Trust, NACE, The National Teacher Enquiry Network (NTEN) and the University of Hertfordshire.This year has seen the TSA provided school to school support to 3 schools, who have all received an Ofstedjudgements of ‘good’.

Canons was awarded a status of ‘transforming’, the highest grade possible for both professional learning andleadership from SSAT Exceptional Schools Framework. Canons was accredited with Silver for the NTEN CPDaudit in July 2017.

Going concern

The Academy has achieved a strong surplus and has retained reserves inherited on conversion.

After making appropriate enquiries, the Governing Body has a reasonable expectation that the Academy hasadequate resources to continue in operational existence for the foreseeable future. For this reason theGoverning Body continues to adopt the going concern basis in preparing the financial statements. Further detailsregarding the adoption of the going concern basis can be found in the statement of accounting policies.

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Financial review

Funding for the period was provided by ESFA by means of standard grants to cover operational and capitalcosts. Additional funds were received from letting facilities to third parties, from bank interest and from successin attracting other grant income. The Academy had successfully applied for a CIF grant from the ESFA forimprovements to the dining room area with the project completed in October 2016. Funding had been receivedin the previous financial year, but with expenditure in this financial year of £148,660.

A deficit of funds of £542,979 has been incurred before an actuarial gain in the pension liability of £877,000. Netassets of £21,116,815 including cash funds of £4,250,958 were carried forward into 2017/18.

At 31 August 2017 cash funds of £4,250,958 were held in bank accounts for the Academy. The bulk of thesefunds were held either in higher rate fixed term deposit accounts or in normal deposit accounts. All funds wereheld with Lloyds Bank and private funds are held with HSBC Bank. These funds have largely been accumulatedthrough a significant brought forward surplus, sustainable budget setting and good financial control to ensure weare able to sustain improvements over a number of years.

Both financial and educational Key Performance Indicators are used to track progress against objectives, and toidentify quickly any worrying trends. These KPIs include student numbers, staff costs as a % of income and FTEto budget, cash held and reporting on the strength of the balance sheet.

Reserves policy

The Governing Body review the reserve level of the Academy annually and having determined an appropriatelevel of free reserves (total funds less the amount held in tangible assets, restricted and designated funds), thatrepresents the amounts deemed to be necessary to deal with unexpected emergencies, the governors haveassessed this as £180,000 and currently it stands at £1,436,553.

The Governors have completed an overall site strategy which was fully costed in January 2013 at £9.9m, Phase1 of this strategy has a cost of £4.15m and Phase 2 £1.8m and governors believe that the free and restrictedgeneral reserves will be required to support and enable the future costs for this strategy.

The Governors are also aware of upcoming cost pressures in pension and national insurance contributions andthe impact of the proposed impact from the implementation of the National Funding Formula, which adverselyimpacts Canons. They therefore regard the level of reserves held as reasonable.

In reviewing their reserves the academy noted that the total at the year end of restricted general funds(excluding pension reserve) plus the balance on unrestricted funds was £3,975,675.

Investment policy and powers

Our investment policy is zero risk based and funds will only be lodged with organisations with the highestpossible credit rating. Fixed term deposits will only be taken out where we are sure the funds will not be requiredduring the duration of the term.

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Principal risks and uncertainties

The governing body is responsible for the identification and management of the risks in their academy. A formalreview of risks and the risk management processes was undertaken during the year and these will be reviewedannually going forward.

Through the risk management processes that have been formalised at the Academy, the governors are satisfiedthat the major risks identified will be adequately mitigated where necessary.

The key controls used by the governing body include:

• formal agendas and minutes for all meetings of the governing body and committees;• terms of reference for all committees;• comprehensive strategic planning, financial forecasting, budgeting and management accounting;• established and identifiable organisational structures and reporting lines;• comprehensive formal written policies;• clear authorisation limits;• construction and regular review of risk registers;• vetting procedures as required by law, for protection of the vulnerable.

In common with every academy in the country, funding is dependent on government policy; there is always riskthat funding will be cut and the governors have been prudent in the budgeting for the future. The brought forwardsurplus is viewed as providing protection against funding and student number fluctuations.

The deficit on the Local Government Pension Scheme decreased by £666,000 in the period to £1,837,000 andthere is continuing uncertainty in any final salary scheme of this type.

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Plans for future periods

The Academy’s key objectives for 2017/18 are to continue the development and progress of the Academy, takingit from outstanding to great. The Academy Improvement Plan includes:

STRATEGIC GOAL 1: Great Achievement – We will all be successful, attaining highly and progressingwell, in order to fulfil our aspirations and empower ourselves. We will act confidently whilst showingresponsibility and care for the achievement of others.

STRATEGIC GOAL 2: Great Learning –We will all meet the challenges of self-improvement, seizing theopportunities to which we are entitled whilst also seeking personal enrichment. We will go beyond ourown needs and engage with the learning of others.

STRATEGIC GOAL 3: Great Professionalism – We will all be effective in our roles, developing ourexpertise and leadership skills in research-focused and evaluative ways. We will innovate in ways thatharness and enhance the commitment and professionalism of others.

STRATEGIC GOAL 4: Great Partnerships –We will all participate in collaborative relationships that aremutually beneficial, enhancing our combined capacity and our collective reputation. We will act at thecentre of networks that generate further partnerships with others.

The Canons’ Community Heartbeat Initiative (CHI)Core Principles1. To utilise unrestricted funds generated by our community in the service of our community in order to create avirtuous circle of school and wider school community improvement.2. To broaden our existing educational mission for 11-18 students to enrich the lives of those in our communitywho play a part in the achievements of past, present and future students.3. To foster a cyclical engagement by community members in the full life of our extended school provision inorder to help them respond to urgent needs and achieve distant dreams.4. To seek congruence, not overlap, between our overriding educational purpose and the social, health,charitable, policing and governmental purposes of other agencies.5. To enhance the ability of our community to achieve success in the wider world by generating sustainableincreases in resources and capacity that serves its developing needs.

Auditor

In so far as the Governors are aware:- there is no relevant audit information of which the charitable company's auditor is unaware; and- the Governors have taken all steps that they ought to have taken to make themselves aware of any relevant

audit information and to establish that the auditor is aware of that information.

The Governors' report, incorporating a strategic report, was approved by order of the Governing Body, as thecompany directors, on ......................... and signed on its behalf by:

..............................

K Rutter

Chair

CANONS HIGH SCHOOL

GOVERNANCE STATEMENT


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Scope of responsibility

As Governors we acknowledge we have overall responsibility for ensuring that Canons High School has aneffective and appropriate system of control, financial and otherwise. However, such a system is designed tomanage rather than eliminate the risk of failure to achieve business objectives, and can provide only reasonableand not absolute assurance against material misstatement or loss.

The Governing Body has delegated the day-to-day responsibility to its Headteacher, as accounting officer, forensuring financial controls conform with the requirements of both propriety and good financial management andin accordance with the requirements and responsibilities assigned to it in the funding agreement betweenCanons High School and the Secretary of State for Education. They are also responsible for reporting to theGoverning Body any material weaknesses or breakdowns in internal control.

Governance

The information on governance included here supplements that described in the Governors' Report and in theStatement of Governors' Responsibilities. The Governing Body has formally met 4 times during the year.Attendance during the year at meetings of the Governing Body was as follows:

Governors Meetings attended Out of possible

K Rutter (Chair) 4 4

K Bartle (Accounting Officer) 4 4

H Patel 3 3

A Hickin 4 4

D Inyang 3 4

N Cain 0 3

R Warshaw 4 4

S Wright 1 4

A Mawson 2 4

A Pitsillis 3 4

J Brennan 3 4

D Raithatha 0 3

D Khagram 1 3

A Brightwell 3 4

A self review of governance took place during the year.

The review indicated solid governance, although some areas of possible improvement were noted, particularly inrelation to succession planning and the overall sustainability of the Governing Body. A review of the currentstructure to address this took place in July 2017, with proposed changes come into effect from September 2017.

The Finance Professionalism and Partnership Committee is a sub-committee of the main Governing Body. Itspurpose is to:• provide guidance and assistance to the governing body on all financial and budgetary matters;• deal with any financial matter raised by the Headteacher or designated representative;• prepare and review financial policy statements, including consideration of long term planning and resourcing;• consider each year’s priorities and present an annual budget to the governing body for approval;• monitor income and expenditure of all public funds and report the financial situation to the governing body eachterm;• recommend the level of delegation to the Headteacher for the day-to-day financial management of the school;• vire funds, if necessary, within limits set by the governing body;• ensure compliance with the appropriate financial regulations• ensure the audit of non-public funds for presentation to the governing body;• receive and, where appropriate, respond to periodic audit reports of public funds;• advise the governing body on all matters relating to fund raising and sponsorship.

CANONS HIGH SCHOOL

GOVERNANCE STATEMENT (CONTINUED)


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Review of value for money

As accounting officer has the responsibility for ensuring that the Academy delivers good value in the use ofpublic resources. The accounting officer understands that value for money refers to the educational and widersocietal outcomes achieved in return for the taxpayer resources received.

The accounting officer considers how the Academy’s use of its resources has provided good value for moneyduring each academic year, and reports to the Governing Body where value for money can be improved,including the use of benchmarking data where available. The accounting officer for the Academy has deliveredimproved value for money during the year by:

- Canons has demonstrated innovative procurement as part of a loose network of 7 Harrow Academies.This has delivered both savings, but also enhanced services, for example a new catering contract following atender process for Catering for 9 Harrow secondary schools, the new contract providing for £330k of investmentacross the 3 year contract, the 2 year extension agreed in April provided a further £200k of capital investmentfrom April 17. The previous contract had seen a reduction in subsidies across the schools from £170,218 in2009 to £24,069 in 2013, increases in sales from £948,427 to £1,552,483 in the same period.

-Canons benchmarks performance at a local, regional and national level, but uses wider benchmarkingtools in looking at the curriculum and timetable

-Canons has an investment policy which balances risk and reward, but an example of the collegiateapproach is shown by being able to ask Lloyds to provide specific information and investment for the Harrowacademies

-Canons has an appropriate risk management strategy which is reviewed carefully on an annual basis

-Canons provides extended use of its facilities offering and additional 40 hours of usage weekly and weeklynumbers using the site in excess of 2,000 weekly

-The development of a Teaching School Alliance with Park High School not only focuses on school to school toschool support, but also looks for the development of wider networks and partnerships adding value andopportunities for Canons to achieve further in supporting its students

-Canons has developed Harrow First as a sustainable model for teacher recruitment and training, which hasseen 5 staff recruited to date, with a further 4 staff recruited onto the programme for Sept 17

- The DfE has established a new measure for rating efficiency in schools, based on student progress and thefunding per student. Our rating is shown below.

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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 offailure to achieve policies, aims and objectives. It can therefore only provide reasonable and not absoluteassurance of effectiveness. The system of internal control is based on an on-going process designed to identifyand prioritise the risks to the achievement of Academy policies, aims and objectives, to evaluate the likelihood ofthose risks being realised and the impact should they be realised, and to manage them efficiently, effectively andeconomically. The system of internal control has been in place in Canons High School for the period 1September 2016 to 31 August 2017 and up to the date of approval of the annual report and financial statements.

Capacity to handle risk

The board of Governors has reviewed the key risks to which the Academy is exposed together with theoperating, financial and compliance controls that have been implemented to mitigate those risks. The board ofGovernors is of the view that there is a formal ongoing process for identifying, evaluating and managing theAcademy's significant risks that has been in place for the period 1 September 2016 to 31 August 2017 and up tothe date of approval of the annual report and financial statements. This process is regularly reviewed by theboard of Governors.

The risk and control framework

The Academy's system of internal financial control is based on a framework of regular management informationand 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 whichare reviewed and agreed by the Governing Body;• regular reviews by the finance and general purposes committee of reports which indicate financial performanceagainst the forecasts and of major purchase plans, capital works and expenditure programmes;• setting targets to measure financial and other performance;• clearly defined purchasing (asset purchase or capital investment) guidelines;• delegation of authority and segregation of duties;• identification and management of risks.

The Governing Body has considered the need for a specific internal audit function and has decided not toappoint an internal auditor.

Alliotts, the external auditor are being used to give advice on financial matters and perform a range of checks onthe Academy's financial systems, which included the following areas this period:

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data returnsIT systemsfinancial proceduresfraud preventionprocurement processesincome processes.

On a termly basis the auditor reports to the Governing Body on the operation of the systems of control and onthe discharge of the financial responsibilities of the Governing Body. No material failures or weaknesses wereidentified during the year as result of the extended assurance work.

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Review of effectiveness

As accounting officer the Headteacher has responsibility for reviewing the effectiveness of the system of internalcontrol. During the year in question the review has been informed by:

• the performance of extended assurance work and statutory audit work by the external auditor;• the financial management and governance self-assessment process;• the work of the Senior Management Team within the Academy who have responsibility for the developmentand maintenance of the internal control framework.

The accounting officer has been advised of the implications of the result of their review of the system of internalcontrol by the finance and general purposes committee and a plan to address weaknesses and ensurecontinuous improvement of the system is in place.

Approved by order of the Governing Body on ......................... and signed on its behalf by:

K Rutter K Bartle

Chair Accounting Officer

CANONS HIGH SCHOOL

STATEMENT OF REGULARITY, PROPRIETY AND COMPLIANCE


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As accounting officer of Canons High School I have considered my responsibility to notify the AcademyGoverning Body and the Education and Skills Funding Agency (ESFA) of material irregularity, impropriety andnon-compliance with ESFA terms and conditions of funding, under the funding agreement in place between theAcademy and the Secretary of State for Education. As part of my consideration I have had due regard to therequirements of the Academies Financial Handbook 2016.

I confirm that I and the Academy's Governing Body are able to identify any material irregular or improper use offunds by the Academy, or material non-compliance with the terms and conditions of funding under theAcademy's funding agreement and the Academies Financial Handbook 2016.

I confirm that no instances of material irregularity, impropriety or funding non-compliance have been discoveredto date. If any instances are identified after the date of this statement, these will be notified to the GoverningBody and ESFA.

K Bartle

Accounting Officer

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CANONS HIGH SCHOOL

STATEMENT OF GOVERNORS' RESPONSIBILITIES


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The Governors (who act as trustees for Canons High School and are also the directors of Canons High Schoolfor the purposes of company law) are responsible for preparing the Governors' Report and the accounts inaccordance with the Annual Accounts Direction issued by the Education and Skills Funding Agency, UnitedKingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable lawand regulations.

Company law requires the Governors to prepare accounts for each financial year. Under company law theGovernors must not approve the accounts unless they are satisfied that they give a true and fair view of thestate of affairs of the charitable company and of its incoming resources and application of resources, includingits income and expenditure, for that period.

In preparing these accounts, the Governors are required to:

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select suitable accounting policies and then apply them consistently;observe the methods and principles in the Charities SORP 2015 and the Academies Accounts Direction2016 to 2017;make judgements and accounting estimates that are reasonable and prudent;state whether applicable UK Accounting Standards have been followed, subject to any material departuresdisclosed and explained in the accounts; andprepare the accounts on the going concern basis unless it is inappropriate to presume that the charitablecompany will continue in business.

The Governors are responsible for keeping adequate accounting records that are sufficient to show and explainthe charitable company's transactions and disclose with reasonable accuracy at any time the financia l position ofthe charitable company and enable them to ensure that the accounts comply with the Companies Act 2006.They are also responsible for safeguarding the assets of the charitable company and hence for takingreasonable steps for the prevention and detection of fraud and other irregularities.

The Governors are responsible for ensuring that in its conduct and operation the charitable company appliesfinancial and other controls, which conform with the requirements both of propriety and of good financialmanagement. They are also responsible for ensuring that grants received from ESFA/DfE have been appl ied forthe purposes intended.

The Governors are responsible for the maintenance and integrity of the corporate and financial informationincluded on the charitable company's website. Legislation in the United Kingdom governing the preparation anddissemination of accounts may differ from legislation in other jurisdictions.

Approved by order of the Governing Body on ......................... and signed on its behalf by:

K Rutter

Chair

CANONS HIGH SCHOOL

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CANONS HIGH SCHOOL

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Opinion

We have audited the accounts of Canons High School for the year ended 31 August 2017 which comprise theStatement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the notes to theaccounts, including a summary of significant accounting policies. The financial reporting framework that hasbeen applied in their preparation is applicable law and United Kingdom Accounting Standards, includingFinancial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic ofIreland (United Kingdom Generally Accepted Accounting Practice), the Charities SORP 2015 and the AcademiesAccounts Direction 2016 to 2017 issued by the Education and Skills Funding Agency.

In our opinion the accounts:

- give a true and fair view of the state of the charitable company's affairs as at 31 August 2017 and of itsincoming resources and application of resources, including its income and expenditure, for the year thenended;

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

- have been prepared in accordance with the requirements of the Companies Act 2006; and

- have been prepared in accordance with the Charities SORP 2015 and the Academies Accounts Direction2016 to 2017.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicablelaw. Our responsibilities under those standards are further described in the 'Auditor's responsibilities for the auditof the accounts' section of our report. We are independent of the Academy in accordance with the eth icalrequirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, andwe have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us toreport to you where:

- the Governors' use of the going concern basis of accounting in the preparation of the accounts is notappropriate; or

- the Governors have not disclosed in the accounts any identified material uncertainties that may castsignificant doubt about the Academy’s ability to continue to adopt the going concern basis of accounting fora period of at least twelve months from the date when the accounts are authorised for issue.

Other information

The other information comprises the information included in the annual report, other than the accounts and ourauditor’s report thereon. The Governors are responsible for the other information. Our opinion on the accountsdoes not cover the other information and, except to the extent otherwise explicitly stated in our report, we do notexpress any form of assurance conclusion thereon.

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

- the information given in the Governors' Report including the incorporated strategic report for the financialyear for which the accounts are prepared is consistent with the accounts; and

- the Governors' Report including the incorporated strategic report have been prepared in accordance withapplicable legal requirements.

CANONS HIGH SCHOOL

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CANONS HIGH SCHOOL(CONTINUED)

- 16 -

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Academy and its environment obtained in the course ofthe audit, we have not identified material misstatements in the Governors' Report, including the incorporatedstrategic report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006requires us to report to you if, in our opinion:

- adequate accounting records have not been kept, or returns adequate for our audit have not been receivedfrom branches not visited by us; or

- the accounts are not in agreement with the accounting records and returns; or

- certain disclosures of Governors' remuneration specified by law are not made; or

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

Responsibilities of Governors

As explained more fully in the Statement of Governors' Responsibilities, the Governors are responsible for thepreparation of the accounts and for being satisfied that they give a true and fair view, and for such internalcontrol as the Governors determine is necessary to enable the preparation of accounts that are free frommaterial misstatement, whether due to fraud or error.

In preparing the accounts, the Governors are responsible for assessing the Academy’s ability to continue as agoing concern, disclosing, as applicable, matters related to going concern and using the going concern basis ofaccounting unless the Governors either intend to liquidate the charitable company, or have no realisticalternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free frommaterial misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted inaccordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arisefrom fraud or error and are considered material if, individually or in the aggregate, they could reasonably beexpected to influence the economic decisions of users taken on the basis of these accounts.

A further description of our responsibilities for the audit of the accounts is located on the Financial ReportingCouncil’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor'sreport.

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 ofPart 16 of the Companies Act. Our audit work has been undertaken so that we might state to the charitablecompany's members those matters we are required to state to them in an auditors' report and for no otherpurpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other thanthe charitable company's members as a body, for our audit work, for this report, or for the opinions we haveformed.

Stephen Meredith BA FCA DChA (Senior Statutory Auditor)

for and on behalf of Alliotts .........................

Chartered Accountants

Statutory Auditor Friary Court

13-21 High Street

Guildford

Surrey

GU1 3DL

CANONS HIGH SCHOOL

INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ONREGULARITY TO CANONS HIGH SCHOOL AND THE EDUCATION AND SKILLSFUNDING AGENCY

- 17 -

In accordance with the terms of our engagement letter dated 21 July 2017 and further to the requirements of theEducation and Skills Funding Agency (ESFA) as included in the Academies Accounts Direction 2016 to 2017, wehave carried out an engagement to obtain limited assurance about whether the expenditure disbursed andincome received by Canons High School during the period 1 September 2016 to 31 August 2017 have beenapplied to the purposes identified by Parliament and the financial transactions conform to the authorities whichgovern them.

This report is made solely to Canons High School and ESFA in accordance with the terms of our engagementletter. Our work has been undertaken so that we might state to the Canons High School and ESFA those matterswe are required to state in a report and for no other purpose. To the fullest extent permitted by law, we do notaccept or assume responsibility to anyone other than Canons High School and ESFA, for our work, for thisreport, or for the conclusion we have formed.

Respective responsibilities of Canons High School's accounting officer and the reporting accountant

The accounting officer is responsible, under the requirements of Canons High School’s funding agreement withthe Secretary of State for Education dated 1 August 2011 and the Academies Financial Handbook, extant from 1September 2016, for ensuring that expenditure disbursed and income received is applied for the purposesintended 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 ethicalguidance, and are to obtain limited assurance and report in accordance with our engagement letter and therequirements of the Academies Accounts Direction 2016 to 2017. We report to you whether anything has cometo our attention in carrying out our work which suggests that in all material respects, expenditure disbursed andincome received during the period 1 September 2016 to 31 August 2017 have not been applied to purposesintended 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 2016 to 2017 issued byESFA. 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 andexplanations in order to provide us with sufficient appropriate evidence to express a negative conclusion onregularity.

A limited assurance engagement is more limited in scope than a reasonable assurance engagement andconsequently does not enable us to obtain assurance that we would become aware of all significant matters thatmight 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 theAcademy's income and expenditure.

CANONS HIGH SCHOOL

INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ONREGULARITY TO CANONS HIGH SCHOOL AND THE EDUCATION AND SKILLSFUNDING AGENCY (CONTINUED)

- 18 -

The work undertaken to draw to our conclusion includes:�

�

��

�

�

�

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analytical review of the Academy's general activities to ensure that they are within the Academy's frameworkof authorities;consideration of the evidence supporting the accounting officer’s statement on regularity, propriety andcompliance;review of the general control environment for the Academy on financial statements and on regularity;sample testing of expenditure transactions to ensure the activity is permissible within the Academy'sframework of authority;confirmation that a sample of expenditure has been appropriately authorised in accordance with theAcademy's delegated authorities;formal representations obtained from the governing body and the accounting officer acknowledging theresponsibilities, including disclosing all non-compliance with laws and regulations specific to the authorisingframework;confirmation that any extra-contractual payments such as severance and compensation payments havebeen appropriately authorised;review of credit card expenditure for any indication of personal use by staff, Headteacher or Governors;review of specific terms of grant funding within the funding agreement;review of related party transactions for connections with the Headteacher or Governors;review of income received in accordance with the activities permitted within the Academy's charitableobjectives.

Conclusion

In the course of our work nothing has come to our attention which suggests that in all material respects theexpenditure disbursed and income received during the period 1 September 2016 to 31 August 2017 has notbeen applied to purposes intended by Parliament and the financial transactions do not conform to the authoritieswhich govern them.

Reporting Accountant

Alliotts

Dated: .........................

CANONS HIGH SCHOOL

STATEMENT OF FINANCIAL ACTIVITIESINCLUDING INCOME AND EXPENDITURE ACCOUNT


- 19 -

Unrestricted Restricted funds: Total Total

Funds General Fixed asset 2017 2016

Notes £ £ £ £ £

Income and endowments from:

Donations and capital grants 3 - 23,401 - 23,401 172,641

Charitable activities:

- Funding for educational operations 4 179,478 7,331,221 - 7,510,699 7,428,683

- Funding for teaching school - 50,000 - 50,000 60,000

Other trading activities 5 134,493 - - 134,493 145,315

Investments 6 7,628 - - 7,628 8,388

Total income and endowments 321,599 7,404,622 - 7,726,221 7,815,027

Expenditure on:


- Educational operations 8 243,284 7,660,199 315,717 8,219,200 7,650,020

- Teaching School - 50,000 - 50,000 60,000

Total expenditure 7 243,284 7,710,199 315,717 8,269,200 7,710,020

Net income/(expenditure) 78,315 (305,577) (315,717) (542,979) 105,007

Other recognised gains and losses

Actuarial gains/(losses) on definedbenefit pension schemes 18 - 877,000 - 877,000 (830,000)

Net movement in funds 78,315 571,423 (315,717) 334,021 (724,993)

Reconciliation of funds

Total funds brought forward 1,433,955 54,982 19,293,857 20,782,794 21,507,787

Total funds carried forward 1,512,270 626,405 18,978,140 21,116,815 20,782,794

CANONS HIGH SCHOOL

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED)INCLUDING INCOME AND EXPENDITURE ACCOUNT


- 20 -

Comparative year information Unrestricted Restricted funds: Total

Year ended 31 August 2016 Funds General Fixed asset 2016

Notes £ £ £ £

Income and endowments from:

Donations and capital grants 3 - 172,641 - 172,641


- Funding for educational operations 4 229,473 7,199,210 - 7,428,683

- Funding for teaching school - 60,000 - 60,000

Other trading activities 5 141,983 3,332 - 145,315

Investments 6 8,388 - - 8,388

Total income and endowments 379,844 7,435,183 - 7,815,027

Expenditure on:


- Educational operations 8 202,519 7,126,151 321,350 7,650,020

- Teaching School - 60,000 - 60,000

Total expenditure 7 202,519 7,186,151 321,350 7,710,020

Net income/(expenditure) 177,325 249,032 (321,350) 105,007

Other recognised gains and losses

Actuarial losses on defined benefit pensionschemes 18 - (830,000) - (830,000)

Net movement in funds 177,325 (580,968) (321,350) (724,993)

Reconciliation of funds

Total funds brought forward 1,256,630 635,950 19,615,207 21,507,787

Total funds carried forward 1,433,955 54,982 19,293,857 20,782,794

CANONS HIGH SCHOOL

BALANCE SHEET

AS AT 31 AUGUST 2017

- 21 -

2017 2016

Notes £ £ £ £

Fixed assets

Tangible assets 12 18,978,140 19,293,857

Current assets

Debtors 13 212,404 105,139

Cash at bank and in hand 4,250,958 4,337,135

4,463,362 4,442,274

Current liabilities

Creditors: amounts falling due within oneyear 14 (487,687) (450,337)

Net current assets 3,975,675 3,991,937

Net assets excluding pension liability 22,953,815 23,285,794

Defined benefit pension liability 18 (1,837,000) (2,503,000)

Net assets 21,116,815 20,782,794

Funds of the Academy:

Restricted funds 16

- Fixed asset funds 18,978,140 19,293,857

- Restricted income funds 2,463,405 2,557,982

- Pension reserve (1,837,000) (2,503,000)

Total restricted funds 19,604,545 19,348,839

Unrestricted income funds 16 1,512,270 1,433,955

Total funds 21,116,815 20,782,794

The accounts set out on pages 19 to 40 were approved by the Governing Body and authorised for issueon ......................... and are signed on its behalf by:

..............................

K Rutter

Chair

Company Number 07694362

CANONS HIGH SCHOOL

STATEMENT OF CASH FLOWS


- 22 -

2017 2016

Notes £ £ £ £

Cash flows from operating activities

Net cash provided by (used in) operatingactivities 19 (117,206) 412,131

Cash flows from investing activities

Dividends, interest and rents from investments 7,628 8,388

Capital grants from DfE and EFA 23,401 172,541

31,029 180,929

Change in cash and cash equivalents in thereporting period (86,177) 593,060

Cash and cash equivalents at 1 September 2016 4,337,135 3,744,075

Cash and cash equivalents at 31 August 2017 4,250,958 4,337,135

CANONS HIGH SCHOOL

NOTES TO THE FINANCIAL STATEMENTS


- 23 -

1 Accounting policies

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

1.1 Basis of preparation

The accounts of the Academy, which is a public benefit entity under FRS 102, have been prepared underthe historical cost convention in accordance with the Financial Reporting Standard Applicable in the UKand Republic of Ireland (FRS 102), the Accounting and Reporting by Charities: Statement ofRecommended Practice applicable to charities preparing their accounts in accordance with the FinancialReporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)),the Academies Accounts Direction 2016 to 2017 issued by ESFA, the Charities Act 2011 and theCompanies Act 2006.

1.2 Going concern

The Governors assess whether the use of going concern is appropriate, ie whether there are any materialuncertainties related to events or conditions that may cast significant doubt on the ability of the Academy tocontinue as a going concern. The Governors make this assessment in respect of a period of one year fromthe date of approval of the accounts and have concluded that the academy trust has adequate resourcesto continue in operational existence for the foreseeable future and there are no material uncertaintiesabout the academy trust’s ability to continue as a going concern, thus they continue to adopt the go ingconcern basis of accounting in preparing the financial statements.

1.3 Income

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

Grants receivable

Grants are included in the statement of financial activities on a receivable basis. The balance of incomereceived for specific purposes but not expended during the period is shown in the relevant funds on thebalance sheet. Where income is received in advance of meeting any performance-related conditions thereis not unconditional entitlement to the income and its recognition is deferred and included in creditors asdeferred income until the performance-related conditions are met. Where entitlement occurs before incomeis received, the income is accrued.

General Annual Grant is recognised in full in the statement of financial activities in the period for which it isreceivable, and any abatement in respect of the period is deducted from income and recognised as aliability.

Capital grants are recognised in full when there is an unconditional entitlement to the grant. Unspentamounts of capital grants are reflected in the balance sheet in the restricted fixed asset fund. Capitalgrants are recognised when there is entitlement and are not deferred over the life of the asset on whichthey are expended.

Donations

Donations are included in the statement of financial activities on a receivable basis where there is certaintyof receipt and the amount can be reliably measured.

Other income

Other income, including the hire of facilities, is recognised in the period it is receivable and to the extentthe Academy has provided the goods or services.

CANONS HIGH SCHOOL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)


1 Accounting policies (Continued)

- 24 -

Donated fixed assets

Donated fixed assets are measured at fair value unless it is impractical to measure this reliably, in whichcase the cost of the item to the donor is used. The gain is recognised as income from donations and acorresponding amount is included in the appropriate fixed asset category and depreciated over the usefuleconomic life in accordance with the Academy‘s accounting policies.

1.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to athird party, it is probable that a transfer of economic benefits will be required in settlement, and the amountof 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 andshared costs, including support costs involved in undertaking each activity. Direct costs attributable to asingle activity are allocated directly to that activity. Shared costs which contribute to more than one activityand support costs which are not attributable to a single activity are apportioned between those activities ona basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent,and depreciation charges are allocated on the portion of the asset’s use.

All expenditure is net of VAT.

Expenditure on raising funds

This includes all expenditure incurred by the Academy to raise funds for its charitable purposes andincludes costs of all fundraising activities events and non-charitable trading.

Charitable activities

These are costs incurred on the Academy's educational operations, including support costs and costsrelating to the governance of the Academy apportioned to charitable activities.

Governance costs

These include the costs attributable to the Academy's compliance with constitutional and statutoryrequirements, including audit, strategic management and Governors' meetings and reimbursed expenses.Such costs include both direct and allocated support costs.

1.5 Tangible fixed assets and depreciation

Assets costing £10,000 or more are capitalised as tangible fixed assets and are carried at cost, net ofdepreciation and any provision for impairment.

Where tangible fixed assets have been acquired with the aid of specific grants, either from the governmentor from the private sector, they are included in the balance sheet at cost and depreciated over thei rexpected useful economic life. The related grants are credited to a restricted fixed asset fund in thestatement of financial activities and carried forward in the balance sheet. Depreciation on such assets ischarged to the restricted fixed asset fund in the statement of financial activities so as to reduce the fundover the useful economic life of the related asset on a basis consistent with the Academy's depreciationpolicy. Where tangible fixed assets have been acquired with unrestricted funds, depreciation on suchassets is charged to the unrestricted fund.

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

Land and buildings 50 years

Fixtures, fittings & equipment 5-15 years

CANONS HIGH SCHOOL




- 25 -

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

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

1.6 Liabilities

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

1.7 Leasing and hire purchase commitments

Rentals payable under operating leases are charged to the statement of financial activities on a straightline basis over the period of the lease.

1.8 Financial instruments

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

Financial assets

Trade and other debtors are basic financial instruments and are debt instruments measured at amortisedcost as detailed in note 13. Prepayments are not financial instruments.

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

Financial liabilities

Trade creditors, accruals and other creditors are financial instruments, and are measured at amortisedcost as detailed in note 14. Taxation and social security are not included in the financial instrumentsdisclosure definition.

Deferred income is not deemed to be a financial liability, as the cash settlement has already taken placeand there is an obligation to deliver services rather than cash or another financial instrument.

1.9 Taxation

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

1.10 Pensions benefits

Retirement benefits to employees of the Academy are provided by the Teachers' Pension Scheme ('TPS')and the Local Government Pension Scheme ('LGPS'). These are defined benefit schemes and the assetsare held separately from those of the Academy.

CANONS HIGH SCHOOL




- 26 -

The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensionsover employees' working lives with the Academy in such a way that the pension cost is a substantiall y levelpercentage of current and future pensionable payroll. The contributions are determined by the GovernmentActuary on the basis of quadrennial valuations using a prospective unit credit method. As stated in note 18,the TPS is a multi-employer scheme and there is insufficient information available to use defined benefitaccounting. The TPS is therefore treated as a defined contribution scheme for accounting purposes andthe contributions are 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 in separatetrustee administered funds. Pension scheme assets are measured at fair value and liabilities are measuredon an actuarial basis using the projected unit credit method and discounted at a rate equivalent to thecurrent rate of return on a high quality corporate bond of equivalent term and currency to the liabilities. Theactuarial valuations are obtained at least triennially and are updated at each balance sheet date. Theamounts 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. Netinterest on the net defined benefit liability/asset is also recognised in the statement of financial activitiesand comprises the interest cost on the defined benefit obligation and interest income on the schemeassets, calculated by multiplying the fair value of the scheme assets at the beginning of the period by therate used to discount the benefit obligations. The difference between the interest income on the schemeassets and the actual return on the scheme assets is recognised in other recognised gains and losses.Actuarial gains and losses are recognised immediately in other recognised gains and losses.

1.11 Fund accounting

Unrestricted income funds represent those resources which may be used towards meeting any of thecharitable objects of the Academy at the discretion of the Governors.

Restricted fixed asset funds are resources which are to be applied to specific capital purposes imposed byfunders 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 thefunder/donor and include grants from the Education and Skills Funding Agency.

2 Critical accounting estimates and areas of judgement

Accounting estimates and judgements are continually evaluated and are based on historical experienceand other factors, including expectations of future events that are believed to be reasonable under thecircumstances.

Critical accounting estimates and assumptions

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

The present value of the Local Government Pension Scheme defined benefit liability depends on a numberof factors that are determined on an actuarial basis using a variety of assumptions. The assumptions usedin determining the net cost or income for pensions include the discount rate. Any changes in theseassumptions, which are disclosed in note 18, will impact the carrying amount of the pension liability.Furthermore a roll forward approach which projects results from the latest full actuarial valuation performedat 31 March 2016 has been used by the actuary in valuing the pensions liability at 31 August 2017. Anydifferences between the figures derived from the roll forward approach and a full actuarial valuation wouldimpact on the carrying amount of the pension liability.

CANONS HIGH SCHOOL



- 27 -

3 Donations and capital grants

Unrestricted Restricted Total Total

funds funds 2017 2016

£ £ £ £

Capital grants - 23,401 23,401 172,541

Other donations - - - 100

- 23,401 23,401 172,641

4 Funding for the Academy's educational operations



£ £ £ £

DfE / ESFA grants

General annual grant (GAG) - 6,603,807 6,603,807 6,501,990

Other DfE / ESFA grants - 400,111 400,111 455,845

National College grants - 64,242 64,242 73,517

- 7,068,160 7,068,160 7,031,352

Other government grants

Local authority grants - 263,061 263,061 167,858

Other funds

Catering income 179,478 - 179,478 229,473

Total funding 179,478 7,331,221 7,510,699 7,428,683

5 Other trading activities



£ £ £ £

Lettings income 98,800 - 98,800 113,369

Other grants - - - 3,332

Other income 35,693 - 35,693 28,614

134,493 - 134,493 145,315

CANONS HIGH SCHOOL



- 28 -

6 Investment income



£ £ £ £

Short term deposits 7,628 - 7,628 8,388

7 Expenditure

Staff Premises Other Total Total

costs & equipment costs 2017 2016

£ £ £ £ £

Academy's educational operations

- Direct costs 5,155,983 - 581,246 5,737,229 5,343,479

- Allocated support costs 1,028,567 850,469 602,935 2,481,971 2,306,541

Teaching School

- Allocated support costs - - 50,000 50,000 60,000

6,184,550 850,469 1,234,181 8,269,200 7,710,020

Net income/(expenditure) for the year includes: 2017 2016

£ £

Fees payable to auditor for:

- Audit 7,460 7,595

- Other services 10,685 4,110

Operating lease rentals 25,136 23,344

Depreciation of tangible fixed assets 315,717 321,350

Net interest on defined benefit pension liability 51,000 59,000

8 Charitable activities



£ £ £ £

Direct costs - educational operations - 5,737,229 5,737,229 5,343,479

Support costs - educational operations 243,284 2,238,687 2,481,971 2,306,541

Support costs - teaching school - 50,000 50,000 60,000

243,284 8,025,916 8,269,200 7,710,020

CANONS HIGH SCHOOL



8 Charitable activities (Continued)

- 29 -

Educational Total Total

TeachingSchool

operations 2017 2016

£ £ £ £

Analysis of support costs

Support staff costs - 1,028,567 1,028,567 822,752

Depreciation and amortisation - 315,717 315,717 321,350

Technology costs - 139,247 139,247 140,667

Premises costs - 503,951 503,951 508,323

Other support costs 50,000 445,250 495,250 506,304

Governance costs - 49,239 49,239 67,145

50,000 2,481,971 2,531,971 2,366,541

9 Staff costs

2017 2016

£ £

Wages and salaries 4,624,821 4,415,771

Social security costs 471,801 396,655

Operating costs of defined benefit pension schemes 914,159 753,461

Apprenticeship levy 3,526 -

Staff costs 6,014,307 5,565,887

Supply staff costs 125,557 172,393

Staff development and other staff costs 44,686 44,658

Total staff expenditure 6,184,550 5,782,938

Staff numbers

The average number of persons employed by the Academy during the year was as follows:

2017 2016

Number Number

Teachers 69 70

Administration and support 64 56

Management 10 10

143 136

CANONS HIGH SCHOOL



9 Staff costs (Continued)

- 30 -

The number of persons employed, expressed as a full time equivalent, was as follows:

2017 2016

Number Number

Teachers 68 62

Administration and support 51 50

Management 10 10

129 122

For these purposes, those support staff whose roles are full time, term time only have been included as100% FTE.

Higher paid staff

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

2017 2016

Number Number

£60,001 - £70,000 2 3

£70,001 - £80,000 4 3

£80,001 - £90,000 - 1

£90,001 - £100,000 1 -

Key management personnel

The key management personnel of the Academy comprise the Governors and the senior managementteam as listed on page 1. The total amount of employee benefits (including employer pensioncontributions) received by key management personnel for their services to the Academy was £869,510(2016: £699,784).

CANONS HIGH SCHOOL



- 31 -

10 Governors' remuneration and expenses

The Headteacher and other staff Governors only receive remuneration in respect of services they provideundertaking the roles of Headteacher and staff, and not in respect of their services as Governors. OtherGovernors did not receive any payments from the Academy trust in respect of their role as Governors.During the year, travel and subsistence payments totalling £nil (2016: £nil) were reimbursed to theGovernors (2016: no Governors).

The value of remuneration was as follows:

K Bartle (Headteacher)Remuneration £95,000 - £100,000 (2016: £80,000 - £85,000)Employer's pension contribution £15,000 - £20,000 (2016: £10,000 - £15,000)

A PitsillisRemuneration £55,000 - £60,000 (2016: £50,000 - £55,000)Employer's pension contribution £5,000 - £10,000 (2016: £5,000 - £10,000)

A MawsonRemuneration £35,000 - £40,000 (2016: £35,000 - £40,000)Employer's pension contribution £nil (2016: £nil)

J BrennanRemuneration £30,000 - £35,000 (2016: £30,000 - £35,000)Employer's pension contribution £5,000 - £10,000 (2016: £5,000 - £10,000)

Other related party transactions are set out within the related parties note.

11 Governors and officers insurance

In accordance with normal commercial practice, the Academy has purchased insurance to protectGovernors and officers from claims arising from negligent acts, errors or omissions occurring whilst onAcademy business. The insurance provides cover up to £1 million on any one claim and the cost for theyear ended 31 August 2017 was £572 (2016: £831).

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

12 Tangible fixed assets

Land andbuildings

Computerequipment

Fixtures,fittings &

equipment

Total

£ £ £ £

Cost

At 1 September 2016 and 31 August 2017 20,847,143 40,850 84,683 20,972,676

Depreciation

At 1 September 2016 1,577,283 40,850 60,686 1,678,819

Charge for the year 310,285 - 5,432 315,717

At 31 August 2017 1,887,568 40,850 66,118 1,994,536

Net book value

At 31 August 2017 18,959,575 - 18,565 18,978,140

At 31 August 2016 19,269,860 - 23,997 19,293,857

CANONS HIGH SCHOOL



- 32 -

13 Debtors 2017 2016

£ £

Trade debtors 52,063 5,080

VAT recoverable 47,598 27,645

Other debtors - 9,074

Prepayments and accrued income 112,743 63,340

212,404 105,139

14 Creditors: amounts falling due within one year 2017 2016

£ £

Trade creditors - 43,604

Other taxation and social security 131,292 124,602

Other creditors 129,963 97,603

Accruals and deferred income 226,432 184,528

487,687 450,337

15 Deferred income 2017 2016

£ £

Deferred income is included within:

Creditors due within one year 160,133 73,750

Deferred income at 1 September 2016 73,750 56,250

Released from previous years (73,750) (56,250)

Amounts deferred in the year 160,133 73,750

Deferred income at 31 August 2017 160,133 73,750

At the balance sheet date the academy was holding funds received in advance for SEN services, TeachingSchool grant and lettings paid in advance.

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16 Funds

Balance at Gains, Balance at

1 September losses and 31 August

2016 Income Expenditure transfers 2017

£ £ £ £ £

Restricted general funds

General Annual Grant 2,333,275 6,603,807 (6,528,449) (60,317) 2,348,316

Other DfE / ESFA grants 224,707 487,754 (657,689) 60,317 115,089

Other government grants - 263,061 (263,061) - -

Teaching School - 50,000 (50,000) - -

Funds excluding pensions 2,557,982 7,404,622 (7,499,199) - 2,463,405

Pension reserve (2,503,000) - (211,000) 877,000 (1,837,000)

54,982 7,404,622 (7,710,199) 877,000 626,405

Restricted fixed asset funds

DfE / ESFA capital grants 19,293,857 - (315,717) - 18,978,140

Total restricted funds 19,348,839 7,404,622 (8,025,916) 877,000 19,604,545

Unrestricted funds

General funds 1,433,955 321,599 (243,284) - 1,512,270

Total funds 20,782,794 7,726,221 (8,269,200) 877,000 21,116,815

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16 Funds (Continued)

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

General Annual Grant: This fund is for the purpose of running the Academy in accordance with theFunding Agreement with the Secretary of State and along guidelines as set out in the Academies FinancialHandbook.

Under the funding agreement with the Secretary of State, the Academy was not subject to a limit on theamount of GAG that it could carry forward at 31 August 2017.

Other DfE/ESFA grants: This fund has also arisen from funding received from the Department forEducation and the Education and Skills Funding Agency for the furtherance of the Academy's activities thatare not funded through the General Annual Grant.

Other government grants: This fund has also arisen from funding received for the furtherance of theAcademy's activities that are not funded through the General Annual Grant.

Other restricted fund: This restricted fund has arisen from other income that the Academy has received.The monies have to be used for the benefit of the Academy but there are no restrictions on when thesemonies can be spent.

Pension reserve: This liability has arisen from the Local Government Pension Scheme, which wasinherited by the Academy on conversion. See note 18 for further details on this liability.

Restricted fixed asset funds: These funds have arisen from fixed assets inherited upon conversion andfrom the subsequent purchases of new assets for use by the Academy. All assets held are specifically forthe use of the Academy.

Unrestricted funds: These have arisen from activities carried out by the Academy for raising funds andare unrelated to any form of government assistance and therefore the Academy can choose to spend ithowever it chooses.

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16 Funds (Continued)

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Movements in funds - previous year

Balance at Gains, Balance at

1 September losses and 31 August

2015 Income Expenditure transfers 2016

£ £ £ £ £

Restricted general funds

General Annual Grant 2,126,409 6,501,990 (6,295,124) - 2,333,275

Other DfE / ESFA grants 79,541 701,903 (556,737) - 224,707

Other government grants - 167,858 (167,858) - -

Teaching School - 60,000 (60,000) - -

Other restricted funds - 3,432 (3,432) - -

Funds excluding pensions 2,205,950 7,435,183 (7,083,151) - 2,557,982

Pension reserve (1,570,000) - (103,000) (830,000) (2,503,000)

635,950 7,435,183 (7,186,151) (830,000) 54,982

Restricted fixed asset funds

DfE / ESFA capital grants 19,615,207 - (321,350) - 19,293,857

Total restricted funds 20,251,157 7,435,183 (7,507,501) (830,000) 19,348,839

Unrestricted funds

General funds 1,256,630 379,844 (202,519) - 1,433,955

Total funds 21,507,787 7,815,027 (7,710,020) (830,000) 20,782,794

17 Analysis of net assets between funds

Unrestricted Restricted funds: Total

Funds General Fixed asset 2017

£ £ £ £

Fund balances at 31 August 2017 arerepresented by:

Tangible fixed assets - - 18,978,140 18,978,140

Current assets 1,512,270 2,951,092 - 4,463,362

Creditors falling due within one year - (487,687) - (487,687)

Defined benefit pension liability - (1,837,000) - (1,837,000)

1,512,270 626,405 18,978,140 21,116,815

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17 Analysis of net assets between funds (Continued)

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Unrestricted Restricted funds: Total

Funds General Fixed asset 2016

£ £ £ £

Fund balances at 31 August 2016 arerepresented by:

Tangible fixed assets - - 19,293,857 19,293,857

Current assets 1,433,955 3,008,319 - 4,442,274

Creditors falling due within one year - (450,337) - (450,337)

Defined benefit pension liability - (2,503,000) - (2,503,000)

1,433,955 54,982 19,293,857 20,782,794

18 Pensions and similar obligations

The Academy's employees belong to two principal pension schemes: the Teachers' Pension SchemeEngland and Wales (TPS) for academic and related staff; and the Local Government Pension Scheme(LGPS) for non-teaching staff, which is managed by London Pension Fund Authority. Both are multi-employer defined benefit schemes.

The pension costs are assessed in accordance with the advice of independent qualified actuaries. Thelatest actuarial valuation of the TPS related to the period ended 31 March 2012 and that of the LGPSrelated to the period ended 31 March 2016.

Contributions amounting to £102,294 (2016: £94,026) were payable to the schemes at 31 August 2017 andare included within creditors.

Teachers' Pension Scheme

Introduction

The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by theTeachers' Pensions Regulations (2010) and, from 1 April 2014, by the Teachers’ Pension SchemeRegulations 2014. Membership is automatic for full-time teachers in academies and, from 1 January 2007,automatic for teachers in part-time employment following appointment or a change of contract, althoughthey are able to opt out.

The TPS is an unfunded scheme and members contribute on a 'pay as you go' basis - these contributionsalong with those made by employers are credited to the Exchequer. Retirement and other pension benefitsare paid by public funds provided by Parliament.

Valuation of the Teachers’ Pension Scheme

The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPSin accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014published by HM Treasury. The aim of the review is to specify the level of future contributions. Actuarialscheme valuations are dependent on assumptions about the value of future costs, design of benefits andmany other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2012 and inaccordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014. Thevaluation report was published by the Department for Education on 9 June 2014.

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18 Pensions and similar obligations (Continued)

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The key elements of the valuation and subsequent consultation are:�

�

��

employer contribution rates set at 16.48% of pensionable pay (including a 0.08% employeradministration charge (previously 14.1%)total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) forservice to the effective date of £191,500 million, and notional assets (estimated future contributionstogether with the notional investments held at the valuation date) of £176,600 million giving anotional past service deficit of £14,900 millionan employer cost cap of 10.9% of pensionable pay will be applied to future valuationsthe assumed real rate of return is 3.0% in excess of prices and 2% in excess of earnings. The rateof real earnings growth is assumed to be 2.75%. The assumed nominal rate of return is 5.06%

The TPS valuation for 2012 determined an employer rate of 16.4%, which was payable from September2015. The next valuation of the TPS is currently underway based on April 2016 data, whereupon theemployer contribution rate is expected to be reassessed and will be payable from 1 April 2019.

The pension costs paid to the TPS in the period amounted to £502,816 (2016: £472,483).

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 a multi-employer pension scheme. The trust hasaccounted for its contributions to the scheme as if it were a defined contribution scheme. The trust has setout above the information available on the scheme.

Local Government Pension Scheme

The LGPS is a funded defined-benefit scheme, with the assets held in separate trustee-administeredfunds. The total contributions are as noted below. The agreed contribution rates for future years are 19.6%for employers and 5.5 to 12.5% for employees.

The Academy has agreed to make additional contributions totalling £123,000 over the three years to March2020 in addition to normal funding levels.

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

Total contributions made 2017 2016

£ £

Employer's contributions 250,000 237,000

Employees' contributions 67,000 63,000

Total contributions 317,000 300,000

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Principal actuarial assumptions 2017 2016

% %

Rate of increases in salaries 2.7 3.6

Rate of increase for pensions in payment 2.4 2.1

Discount rate 2.5 2.0

Inflation assumption (CPI) 2.4 2.1

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

2017 2016

Years Years

Retiring today

- Males 22.2 22.1

- Females 24.4 24.4

Retiring in 20 years

- Males 24.4 24.5

- Females 26.4 26.9

Scheme liabilities would have been affected by changes in assumptions as follows:

2017 2016

£ £

Discount rate + 0.1% (102,000) (110,000)

Discount rate - 0.1% 102,000 110,000

Mortality assumption + 1 year 175,000 136,000

Mortality assumption - 1 year (175,000) (136,000)

CPI rate + 0.1% 86,000 67,000

CPI rate - 0.1% (86,000) (67,000)

The Academy's share of the assets in the scheme 2017 2016

Fair value Fair value

£ £

Equities 1,921,000 1,587,000

Bonds 303,000 285,000

Cash 101,000 142,000

Property 202,000 20,000

Total market value of assets 2,527,000 2,034,000

Actual return on scheme assets - gain 276,000 339,000

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Amounts recognised in the statement of financial activities 2017 2016

£ £

Current service cost 410,000 281,000

Interest income (43,000) (58,000)

Interest cost 94,000 117,000

Total operating charge 461,000 340,000

Changes in the present value of defined benefit obligations 2017 2016

£ £

Obligations at 1 September 2016 4,537,000 3,009,000

Current service cost 410,000 281,000

Interest cost 94,000 117,000

Employee contributions 67,000 63,000

Actuarial (gain)/loss (644,000) 1,111,000

Benefits paid (100,000) (44,000)

At 31 August 2017 4,364,000 4,537,000

Changes in the fair value of the Academy's share of scheme assets

2017 2016

£ £

Assets at 1 September 2016 2,034,000 1,439,000

Interest income 43,000 58,000

Actuarial gain 233,000 281,000

Employer contributions 250,000 237,000

Employee contributions 67,000 63,000

Benefits paid (100,000) (44,000)

At 31 August 2017 2,527,000 2,034,000

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

2017 2016

£ £

Net (expenditure)/income for the reporting period (542,979) 105,007

Adjusted for:

Capital grants from DfE/ESFA and other capital income (23,401) (172,541)

Investment income receivable (7,628) (8,388)

Defined benefit pension costs less contributions payable 160,000 44,000

Defined benefit pension net finance cost 51,000 59,000

Depreciation of tangible fixed assets 315,717 321,350

(Increase) in debtors (107,265) (15,764)

Increase in creditors 37,350 79,467

Net cash used in operating activities (117,206) 412,131

20 Commitments under operating leases

At 31 August 2017 the total future minimum lease payments under non-cancellable operating leases wereas follows:

2017 2016

£ £

Amounts due within one year 24,090 17,860

Amounts due in two and five years 9,498 17,860

33,588 35,720

21 Related party transactions

Owing to the nature of the Academy's operations and the composition of the Governing Body being drawnfrom local public and private sector organisations, transactions may take place with organisations in whichGovernors have an interest. All transactions involving such organisations are conducted at arm's lengthand in accordance with the Academy's financial regulations and normal procurement procedures.

During the year there were fees of £nil (2016: £14,400) paid to Harrow Alternative Provision AcademyTrust, a school set up by the senior schools of the Harrow Collegiate to offer alternative provision educationto pupils from their respective schools, of which Canons High School is a member.

22 Members' liability

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

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