UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST (A

Company Registration No. 08255492 (England and Wales)

UNIVERSITY OF WOLVERHAMPTON MULTI

ACADEMY TRUST

(A COMPANY LIMITED BY GUARANTEE)

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

CONTENTS

Page

Reference and administrative details

Trustees' report

2 - 15

Governance statement

16 - 19

Statement on regularity, propriety and compliance

Statement of trustees' responsibilities

Independent auditor's report on the accounts

22 - 24

Independent reporting accountant's report on regularity

25 - 26

Statement of financial activities including income and expenditure account

27 - 28

Balance sheet

Statement of cash flows

Notes to the financial statements including accounting policies

31 - 55

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

REFERENCE AND ADMINISTRATIVE DETAILS

-1-

Members

Professor G Layer

Dr A Hopkins

Professor I Oakes (Resigned 25

November 2019)

Professor N Karodia (Appointed 25

November 2019)

Trustees

Mr C Avern (Resigned 7 July 2020)

Mr G Butler (as a representative of the University of Wolverhampton

Social Enterprise board)

Mrs D Cooper (Appointed 11 November 2019)

Mrs J Dunne (Chair of the Trust Board) (Resigned 28 February 2020)

Mr A Edwards (Chair of the Trust Board) (Appointed 25 February 2020)

Mrs E Gaffney (Appointed 9 November 2020)

Mrs C Jenkins (Resigned 28 February 2020)

Mrs M R Kidd

Mrs G Lahiri

Mr R Lockwood

Mr M Rickhuss (Appointed 26 November 2019)

Professor M Shaw (CEO and Accounting Officer)

Mrs S Wedgwood (Appointed 26 November 2019)

Senior management team

- CEO and Accounting Officer

Professor M Shaw

- Director of Finance and CFO

Mr P Scott

- Executive Head Teacher

Mr C Jones

- Director of Human Resources

Mrs S Malhotra

- Director of Training and Development

Mrs C Jenkins

Principal and registered office

University of Wolverhampton

Wulfruna Street

Wolverhampton

WV1 1LY

Company registration number

08255492 (England and Wales)

Independent auditor

KPMG LLP

One Snowhill

Snowhill Queensway

Birmingham

B4 6GH

Bankers

Lloyds Bank

36/38 New Street

Birmingham

B2 4LP

Solicitors

Mills and Reeves

78-84 Colmore Row

Birmingham

B3 2AB

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 AUGUST 2020

-2-

The Trustees present their annual report together with the financial statements and auditor’s report of the

charitable company for the year 1st September 2019 to 31st August 2020. The annual report serves the

purposes of both a trustees’ report, and a directors’ report under company law.

The academy trust operates 10 primary academies and 2 secondary academies across the West Midlands

and Staffordshire. Its academies have a combined pupil capacity of 5349 and had a roll of 4733 in the school

census on October 2019.

Structure, governance and management

Constitution

The academy trust is a company limited by guarantee and an exempt charity. The charitable company’s

memorandum and articles of association are the primary governing documents of the academy trust. The

constituent academies of the trust are:

Albert Bradbeer Primary Academy

Edgar Stammers Primary Academy

Fairway Primary Academy

Featherstone Academy

Heathlands Primary Academy

The Orchards Primary Academy

Pye Green Academy

Reaside Academy

Smestow School

Tame Valley Academy

Wednesfield High Specialist Engineering Academy

Woodhouse Primary Academy

The charitable company operates as University of Wolverhampton Multi Academy Trust (UWMAT).

The Trustees of UWMAT are also the directors of the charitable company for the purposes of company law.

Details of the trustees who served during the year, and to the date these accounts are approved are included

in the References and Administration Details on Page 1.

Members' liability

Each member of the charitable company undertakes to contribute to the assets of the charitable company in

the event of it being wound up while they are a member, or within one year after they cease to be a member,

such amount as may be required, not exceeding £10, for the debts and liabilities contracted before they

ceased to be a member.

The members are:

Professor Geoff Layer - Vice Chancellor (University of Wolverhampton)

Professor Ian Oakes - Deputy Vice Chancellor (University of Wolverhampton) (Resigned 25

November

2019)

Dr Alexandra Hopkins - Dean (University of Wolverhampton)

Professor N Karodia (Appointed 25

November 2019)

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-3-

The Trustees are:

Mr C Avern (Resigned 7 July 2020)

Mr G Butler (as a representative of the University of Wolverhampton Social Enterprise board)

Mrs D Cooper (Appointed 11 November 2019)

Mrs J Dunne (Chair of the Trust Board) (Resigned 28 February 2020)

Mr A Edwards (Chair of the Trust Board) (Appointed 25 February 2020)

Mrs E Gaffney (Appointed 9 November 2020)

Mrs C Jenkins (Resigned 28 February 2020)

Mrs M R Kidd

Mrs G Lahiri

Mr R Lockwood

Mr Mike Rickhuss (Appointed 26 November 2019)

Professor M Shaw (CEO and Accounting Officer)

Mrs S Wedgwood (Appointed 26 November 2019)

Trustees' indemnities

As part of the overall insurance cover, taken out with third party insurers, the trust has taken out insurance

relating to Governors' Indemnity. The limit of Indemnity cover is £5,000,000 in this respect.

Method of recruitment and appointment or election of trustees

The management of the academy trust is the responsibility of the trustees who are elected and co-opted

under the terms of the Articles of Association (Article 50).

• The Members may appoint by ordinary resolution up to 6 Trustees;

• The Members may appoint by ordinary resolution 2 Trustees each of whom is a head teacher of one

or more of the Academies;

• The Members may appoint by ordinary resolution 2 Trustees each of whom is a Chairman of one or

more of the Local Governing Bodies;

• The Members may appoint by ordinary resolution 2 Parent Trustees from the Parent Local

Governors;

• The total number of Trustees including the CEO if they so choose to act as Trustee under article 57

who are employees of the Academy Trust shall not exceed one third of the total number of Trustees.

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-4-

Policies and procedures adopted for the induction and training of trustees

The training and induction of trustees will depend on their existing experience. New trustees will be appointed

according to the level of expertise which meets the requirements of the academy trust. Where necessary,

training will be given on legal, financial and educational matters.

All trustees are encouraged to undertake personal training in addition to courses organised for all trustees,

to ensure that they are up to date in their knowledge and able to carry out their roles effectively. Trustees

meet regularly and receive on a regular basis updated copies of policies and procedures and are encouraged

to have an input into Trust self-evaluation and improvement planning.

Organisational structure

The arrangements for delegated authority within UWMAT are set out within our scheme of delegation. The

functions of the academy trust are discharged by its various boards, committees and key posts. The

significant roles and responsibilities within the organisation are as follows;

Members

The members of UWMAT are signatories to the trust’s memorandum and articles of association (a document

which outlines the governance structure and how the trust operates). The members appoint trustees to

ensure that the trust’s charitable object is carried out. They are able to remove trustees if they fail to fulfil this

responsibility. Members are also responsible for approving any amendments to the trust’s articles of

association. While members are permitted to be appointed as trustees, in order to retain a degree of

separation of powers between the members and the trust board, and in line with DfE expectations, not all

members are trustees. Members are not permitted to be employees of the trust.

Trustees

The trustees of UWMAT are the charity trustees and are responsible for the general control and management

of the administration of the trust in accordance with the provisions set out in the memorandum and articles

of association. The board of trustees is accountable for the performance of all academies within the trust and

as such must;

• Ensure clarity of vision, ethos and strategic direction

• Hold the executive officers and head teachers to account for the educational performance of the

academies and their pupils, and the performance management of staff

• Oversee the financial performance of the trust and make sure its money is well spent.

Because trustees are bound by charity and company law, the terms “trustees” and “directors” are used

interchangeably.

The Board of Trustees

The UWMAT board is permitted to exercise all the powers of the academy trust. The trustees delegate certain

governance functions and these are set out in our scheme of delegation.

The trust has the right to review and adapt its governance structure at any time which includes removing

delegated authority in certain circumstances.

The board of trustees of UWMAT delegate responsibility for delivery of its objectives and strategy to the lead

professional of the Trust the Chief Executive Officer (CEO), who is also designated as the Accounting Officer

(AO). The Trust board holds the CEO to account for the performance of the trust, including the performance

of the academies within the trust.

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-5-

Some responsibilities concerning the performance of each academy are delegated to Local Governing

Bodies. Each Local Governing Body will use its detailed knowledge and engagement with stakeholders to

ensure that their academy is performing to the highest possible standards, and that it is being well served by

the executive leadership of the trust.

The performance management of the CEO (AO) is the responsibility of the trust board. The CEO is

responsible for the performance management of the academy head teachers but will seek contributions from

representatives of the Local Governing Bodies to this process.

Board Sub Committees

The trustees have established four sub committees with the purpose of providing advice and support and

informing the overall work of the trust board.

• Academic Board

• Finance and Resources Committee

• Audit, Risk and Compliance Committee

• Remunerations Committee

However these sub committees are not legally responsible or accountable for statutory functions – the trust

board retains overall accountability and responsibility. The responsibilities of the board sub committees are

set out in their terms of reference; the responsibilities of school governing boards are set out in our scheme

of delegation. The trust board appoints subcommittee members and chairs.

Local Governing Bodies

The responsibilities of local governing bodies are set out in detail in our scheme of delegation but they include;

building an understanding of how the academy is led and managed, monitoring whether the academy is

working within agreed policies, meeting agreed targets, managing its finances well and engaging with

stakeholders.

As a committee of the trust board, delegation to a local governing body can be removed if there is evidence

of any of the following:

• Weak performance in response to a review of governance or Ofsted inspection.

• An Ofsted inspection where there is a rating decline or an academy moves into a category of serious

weakness or requiring improvement.

• A sudden or unexpected significant dip in the performance of an academy

• A significant safeguarding concern within an academy.

Chief Executive Officer (The Accounting Officer)

The CEO has the delegated responsibility for the operation of UWMAT including the performance of the

trust’s academies. The CEO is the accounting officer so has overall responsibility for the operation of the

academy trust’s financial responsibilities and must ensure that the organisation is run with financial

effectiveness and stability, avoiding waste and securing value for money. The CEO leads the executive

management team of UWMAT. The CEO will delegate executive management functions to the executive

management team and is accountable to the trust board for the performance of the executive management

team.

Chief Financial Officer (CFO)

The CFO plays both a technical and leadership role and is appointed by the board. The board has delegated

responsibility to the CFO for the academy trusts detailed financial procedures.

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-6-

Academy Head teacher

The academy head teacher is responsible for the day to day management of the academy and is managed

by the CEO. She / he reports to the local governing body on the overall performance of the academy, the

progress of pupils and any other matters which have been delegated.

GOVERNANCE STRUCTURE: UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

Members

Board of Trustees

Board Sub Committees

Academic Board

Finance and Resources

Committee

Risk, Audit, Compliance

Committee

Remunerations

Committee

Local Governing bodies and their respective sub committees

Arrangements for setting pay and remuneration of key management personnel

The arrangements for setting the pay and remuneration of the key management personnel of the academy

trust are subject to the 'school teachers pay and conditions document and guidance on school teachers pay

and conditions’. The determination of leadership pay is in line with the school group size and relevant scale

points attributed to the group pay range. Incremental rises are dependent upon the successful completion of

the previous years’ performance management cycle and quality assured by the Senior Leadership Team

within each academy. Recommendations for pay increases are made by the Senior Leadership Team to the

academy governing committee and their decision is validated by Trust Officers and reported to the board of

trustees.

Pay progression for head teachers is dependent upon the successful completion of the previous years’

performance management cycle with a sample quality assured by a member of the Trust Board.

Recommendations for pay increases are made by the Appraisal Committee Chair (normally the Chair of the

Local Governing Board) and their decision is reported and approved by the Trust Board Remuneration

Committee during the spring term.

Pay progression for Trust Officers is dependent upon the successful completion of the previous years’

performance management cycle with recommendations approved by the Chief Executive and Trust Board

Remuneration Committee.

Non-teaching staff pay is based on the outcome of the national negotiations and conclusion of the National

Joint Council’s pay decision.

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-7-

Trade Union Facility Time

Relevant union officials

Number of employees who are relevant union officials

during the relevant period

Full-time equivalent employee number

9.6 FTE

Percentage of time spent on facility time

Percentage of time

Number of employees

1%-50%

51%-99%

100%

Percentage of pay bill spent on facility time

Provide the total cost of facility time

£21,018.77

Provide the total pay bill

£20,420,103.32

Provide the percentage of total pay bill spent on facility

time, calculated as;

(total cost of facility time ÷ total pay bill) x 100

0.10%

Paid trade union activities

Time spent on paid trade union activities as a percentage

of total paid facility time hours calculate as;

(total hours spent on paid

trade union activities by

relevant union officials during the relevant period ÷ total

paid facility time hours) x 100

7.30%

Related parties and other connected charities and organisations

The members, board of trustees, academy committee members and the accounting officer all complete a

pecuniary interest declaration on an annual basis. This declaration sets out any relationship with the academy

trust that is not directly related to their duties within these roles. Each individual is also required to declare a

potential ‘conflict of interest’ if it arises between such declarations. Once a declaration has been made, the

individual concerned takes no further part in any decision relating to the matter declared.

In respect of the current year, the multi academy trust has the following relationship and has made payments

and received income from University of Wolverhampton and University of Wolverhampton Social Enterprises

Engagement with Employees (Including disabled people)

In order to provide employees with information on matters of concern to them and of factors affecting the

Trust performance; this was undertaken through individual letters, staff meetings at local level in academies,

briefings with Head teachers (both verbal) and in written format on a regular basis (during lockdown as a

result of COVID 19) this was on daily and now weekly basis. Networks for specialist areas such as

Safeguarding and Business Managers were also held termly and where information was required to be

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-8-

shared with employees from these; relevant staff did so. The Trust Website is also a valuable tool for

employees to use to gain further information about the position of other academies in the Trust so that all

employees feel engaged with the Trust and are aware of the other academies in the Trust.

The Trust has a formal recognition agreement with professional associations and meetings with trade union

colleagues and the Trust were held regularly. During lockdown consultation was difficult and took place

virtually however, locally Head teachers consult and meet with representatives as required to ensure that

good industrial relations are maintained.

The Trust encourages all staff to fully contribute to the performance of the Trust. The development of the

strategic plan and the subsequent roll out of this will cement this further however, in the meantime objectives

set as part of the performance management process encourages staff contribution through performance

whilst taking account of individuals professional and continuous development needs. Additionally,

governance of academies allows for staff representatives to be members of the local governing bodies.

The Trust records equality and diversity information including disability, as part of the recruitment process

and does not tolerate discrimination of any kind. Where a disabled candidate meets the essential criteria for

a position they progress through the next stage of the process. If an employee is deemed to be disabled

during the course of their employment, the Trust in partnership with the Occupational Health provider will

ensure that the appropriate duty of care is afforded to the employee and where reasonable – appropriate

measures and adjustments are implemented to support the disabled employee to remain employed. All staff

whether they have a disability or not have the opportunity for career development and promotion within the

Trust.

Objectives and Activities

Our Trust works for all pupils in our family of schools to secure an innovative approach to schooling, which

builds on observable strength and addresses long-standing difficulties. The Trust strives for the best whilst

remaining realistic, invests in communities, whilst taking the lead where necessary and expects the best,

whilst dealing with the worst.

The Trust is dynamic, active and imaginative in its work with schools while at the same time encouraging

schools to take responsibility and develop their own autonomy within the context of a community of schools

supporting each other.

The link with the University of Wolverhampton is central to our ethos. The faculties of the University offer

expertise to our schools, including high calibre teaching staff. The University itself acts as an image of

personal growth, learning and achievement for the community of which the pupils and their families are a

part. The Trust believes that it is contributing to the long-term health of the region and works closely with

employers and business to meet the local economic needs.

We will work to ensure that parents are confident that committed staff at every level offer pupils the best of

school experiences where their futures are secure. Pupils will leave the academies of the Trust with the skills

to enter the next stage of their life, a desire to continue to learn and a belief that their schooling was the best

it could be.

The Trust committed to creating a culture where staff are valued and supported. The Trust supports a culture

of openness and mutual respect in which staff will be encouraged to play as full a part as they can in the life

and goals of the Multi Academy Trust.

The overarching aim for the Trust is to create academies that provide an environment which is welcoming,

caring, calm, disciplined and purposeful and which, within a developmental ethos, will stretch our young

people academically, support them pastorally and help them develop socially and spiritually. We believe in

allowing each Academy to retain its own distinct voice and identity, supporting all with efficient and effective

Central Services and expertise. All our Academies are focused and innovative with School Improvement

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-9-

Practices sharing best practice and developing deep partnerships that will embed consistent levels of student

outcomes and ensure progress. Education, at every stage of the student journey, is about the development

and nurture of the whole child. The environment of the Trust is designed to encourage creativity, physical

excellence and academic achievement so that they are ready to take their place in the world and bring their

contribution to society.

Objects and Aims

Our overarching aim is to do the right things for the children who attend our academies so that they can be

successful. To do this we will focus on four shared aims: As a Trust we will;

Aim 1 - Pupils and their Families First

s a Trust we will deliver a sector leading school experience for all of our pupils, maximising their potential.

We will do this by delivering outstanding pedagogic practice underpinned by research.

Aim 2 - Skills for the Economy

Our learning opportunities will target the economic and social needs of the areas in which we work. We will

seek to maximise everyone’s potential, providing the skills, knowledge and expertise needed to lead a

successful and fulfilled life.

Aim 3 - Significant Influence

The Trust will be a leader in the creation and dissemination of knowledge about ‘what works’ in schools. We

aim to be a Trust that ‘makes a difference’ locally, regionally and nationally.

Aim 4 - A Responsible and Reliable business

The Trust will deliver ‘Best Value’ in the use of public money for pupils in the Trust and will create a

sustainable school workforce. It will operate at all times within the regulatory frameworks.

Our aims and objectives have been informed by our self-evaluation and a SWOT analysis. These have been

completed using the Multi-academy trusts: establishing and developing your trust guidance provided by the

DfE (December 2016) - https://www.gov.uk/government/publications/multi-academy-trusts-establishing-and-

developing-your-trust.

Strategic report

Achievements and performance

The UWMAT Strategic Plan has been designed to provide a strategic overview of the key priorities that the

Trust Board will be focussing. This is reviewed annually. It is available on request.

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-10-

Academic Performance

Ofsted outcomes provide one element of the overall performance of an academy. Of the 12 academies in

the Trust 8 are graded as Good. The table below summarises the overall picture.

Academy

Pupil Premium

Eligibility

2019/20 (%)

(National

Average =

27.7%)

Date of last Ofsted

Ofsted Grade

Trend (improvement or

decline in grading from

previous inspection to

last inspection)

Reaside

67%

1st November

2016

Good

Improved

Tame Valley

66.6%

27th November

2018

Good

Maintained

Edgar Stammers

Primary

61%

12th March

2019

Requires

Improvement

Improved

Albert Bradbeer

Primary

62%

9th October 2019

Good

Improved

The Orchards

Primary

53%

13th March 2019

Good

Maintained

Heathlands

Primary

46.5%

25th September

2019

Requires

Improvement

Maintained

Woodhouse

Primary

42%

3rd December

2019

Good

Maintained

Wednesdfield

High

38.5%

December

2018

Requires

Improvement

Improved

Fairway Primary

37%

5th February 2019

Good

Maintained

Smestow School

36%

May 2019

Requires

Improvement

Maintained

Featherstone

23%

20th June 2017

Good

Maintained

Pye Green

18.3%

12th September

2017

Good

Maintained

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-11-

Strategic Performance Report - Primary

Pupil Performance

Another key indicator of performance is that of our pupils in externally validated examinations:

Due to the Impact of COVID-19 and assessments not taking place as normal, the academy results presented

are based on projections and not actual results attained by pupils during 2019.20.

- End of Reception Good Level of Development (GLD) – 7 of the 9 eligible academies achieved higher

than or in-line with the national average for GLD. The Trust average for the % children achieving a

Good Level of Development is higher than the national average.

- End of Key Stage One Accountability Measures – The Trust Average for the % of children attaining

the Expected Standard is in-line with National averages for Reading, Writing and Maths.

End of Key Stage Two Accountability Measures – The Trust Average for the % of children attaining the

Expected Standard is above National Reading, Writing, Maths and Combined. The following has been

achieved.

- The Trust Average for the % of children attaining the Expected Standard is above National Average

for Grammar, Punctuation and Spelling.

- The Trust Average % for the children attaining the Higher Standard is above National Average for

Grammar, Punctuation and Spelling.

All schools have set home learning during the period that schools were closed which has ensured that as

many children as possible have been able to continue to learn the appropriate curriculum content for their

Year group.

Strategic Performance Report - Secondary

Pupil numbers are rising at Wednesfield with staffing and leadership at the Academy in a stable position.

Smestow Academy is experiencing falling numbers on roll and is going through a period of transition within

its staffing and leadership, following a recent restructure. Student numbers in the locality of Smestow

Academy are set to fall in 2020.21 but there are projections of rising numbers in the following years.

COVID-19 led to the cancelation of exams across the sector, which has meant that year to year comparison

cannot be accurately carried out, the following statements are based on the academies predictions and

issued results.

Secondary KS4 (GCSE)

KPIs across both Academies show an improving picture at KS4.

Improvements

Wednesfield have experienced improvements in Progress 8 figures during 2019.20, specifically within

disadvantaged students and Boys. The Academy has also moved within the floor standard for the first time.

Smestows results have improved.

Issues

Smestows disadvantaged pupil’s underperformed on Progress 8 compared to prior years, recruitment at

Smestow has been challenging along with the ability to retain high quality teachers.

Wednesfield is experiencing slower improvements with Girls Progress 8 scores than desired.

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-12-

Secondary KS5 (A / AS /BTEC etc.)

KPIs across both Academies show an improving picture at KS5.

Improvements

Both academies saw an increase in their Average Point Scores (APS) across Academic, Applied and

Technical.With improved retention figures at Smestow across KS5

Issues

Areas of improvement identified, Technical ICT retention at Smestow.

Going concern

Covid-19 has impacted on the fundamental approach to “business as usual” for UWMAT since the Lockdown

was announced in April 2020.

The Trust has continued to support all of its pupils to access education, whether that be on site for vulnerable

children and children of key workers or remotely for pupils learning from home.

The financial impact to the Trust during 2019.20 Academic year was closely managed, with any additional

costs incurred as a result of the pandemic, in the main, supported through budget allocations.

The Board of Trustees are aware of the significant impact on the financial and operational activities COVID-

19 has caused and the risk this has to the going concern of the Trust.

Income from the Trusts core funding, government grants, has not yet been impacted by the pandemic,

however other income streams that supported value added activities within the Trust have reduced

considerably putting strain on academy budgets and the provisions offered.

The Trust is planning to reduce any none core spend for the foreseeable future due to the uncertainty

surrounding the duration of the pandemic. The budgets generated will be managed to support additional

costs in relation to COVID-19 including but not limited to; cleaning, food vouchers and agency spend.

The Trust board has committed surplus budgets forecasted in the 2020.21 academic year to be used to

support its academies to continue their operations during these challenging times.

After taking the pandemic into account the board of trustees has a reasonable expectation that the academy

trust has adequate resources to continue in operational existence for the next 12 month from the date of

these accounts. 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.

Financial review

Income

Income for the period was £29,643,000 of which £26,683,000 was provided by the Department of Education

(DfE) via the Education and Skills Funding Agency (ESFA) by means of standard grants to cover operational

and capital costs. This was supplemented by donations and Capital Grants along with other trading activities

including third party lettings and funds generated by extended school activities which totalled the remaining

£2,960,000.

Expenditure

All expenditure supports the academy trust key objectives to deliver quality education to our pupils and

community. Expenditure for the period was £32,207,000 with the largest element of this expenditure being

attributed to staff costs totalling £22,981,000 for the period. Net Income for the period was (£2,564,000).

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-13-

The academy trust element of the West Midlands and Staffordshire Pension funds that forms part of the Local

Government Pension Scheme was valued at 31 August 2020, showing a net deficit of (£30,536,000)

As at 31 August 2020, the net book value of fixed assets was £69,170,000 and the movement in tangible

fixed assets are shown in Note 13 of the financial statements. The assets were used exclusively in providing

education and the associated support services to the pupils across the academy trust.

The academy trust complies with the principles of financial control as outlined in the Academies Financial

Handbook and the Accounts Direction. The financial procedures, Scheme of Delegation and Value for Money

statement together with systems of financial control ensure that the academy trust conforms to the

requirements of propriety, regularity and sound financial management.

The board of trustees are accountable for the allocation of resources to meet the objectives set out in the

Strategic Development Plan. The Accounting Officer together with the Director of Finance and Finance and

Resources Committee is responsible for reviewing the Financial Procedures on an annual basis and

recommending approval to the main board of trustees. Individual academy budgets are monitored on a

monthly basis with reports and commentary on income and expenditure against budget provided to the

Finance Committee on a twice termly basis and to the board of trustees on a termly basis.

Reserves policy

The level of reserves held takes into account the nature of income and expenditure streams and the need to

match them to commitments. It also considers future capital projects, and the need to maintain sufficient

reserves to cover any unexpected urgent expenditure and requirements. The board of trustees will review

the level of reserves and reserves policy annually.

Our target of 5% General Annual Grant (19.20 £1,130,400) has been achieved this year. Revenue reserves

have increased from £2,827,000 to £2,973,000 within the year. One School has yet to achieve a surplus

budget and has a deficit recovery plan in place. Financial performance is regularly monitored at a local level

and by the Trust central finance team.

Principal Risks and Uncertainties

The Risk Management Policy categorises responses to risk into four response categories:

Transfer: For some risk the best response may be to transfer them. This might be done by conventional

insurance, or it might be done by paying a third party to take the risk in another way. This option is particularly

good for mitigating financial risks of risks to assets.

Tolerate: The exposure may be tolerable without any further action being taken. Even if it is not tolerable, an

ability to do anything about some risks may be limited, or the cost of taking any action may be disproportionate

to the potential benefit gained. In these cases the response may be toleration. This option may be

supplemented by contingency planning for handling the impacts that will arise if the risk is realised.

Treat: By far the greatest number of risks will belong to this category. The purpose of treatment is not

necessarily to obviate the risk but more likely to take control action to contain the risk to an acceptable level.

Terminate: Some risks will only be treatable, or containable to acceptable levels, by terminating the activity.

It should be noted that the option of termination of activities may be severely limited in the public sector when

compared to the private sector.

During the year under review, UWMAT has had due regard to its responsibilities to adhere to the regularity

and propriety requirement laid down by Parliament. The trustees are able to identify any material irregular or

improper use of funds by the trust, or material non-compliance with the terms and conditions of funding under

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-14-

the Trust’s funding agreement and Academies Financial Handbook. During the year under review, no

instances of material irregularity, impropriety or funding non-compliance have been discovered.

Streamlined Energy and Carbon Reporting

UK Greenhouse gas emissions and energy use data for the period 1

September 2019 to 31 August 2020

Energy consumption used to calculate emissions (kWh)

5,971,112 KWH

Energy consumption break down (KWh) (optional)

• Gas

• Electricity

• Transport fuel

Gas – 1,689,266 KWH

Electricity – 4,281,841 KWH

Scope 1 emissions in metric tonnes C02e

Gas consumption

Owned transport – mini-buses

Total scope 1

Gas – 310.60 tC02e

Mini-Buses – 16.99 tC02e

Scope 2 emissions in metric tonnes C02e

Purchased electricity

998.27 tC02e

Scope 3 emissions in metric tonnes C02e

Business travel in employee owned vehicles

10.78 tC02e

Total Gross emissions in metric tonnes C02e

1,336.64 tC02e

Intensity Ratio

Tonnes C02e per pupil (XXX)

Tonnes C02e per staff member (664) (Note 10)

2.01 tC02e

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-15-

Quantification and Reporting Methodology

• We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also

used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK

Government’s Conversion Factors for Company Reporting

Intensity Measurements

The Chosen intensity measurement ration is total gross emissions in metric tonnes C02e per pupil, the

recommended ratio for the sector

Measures taken to improve energy efficiency

In 2019.2020 UWMAT commissioned Entrust to produce an Asset Management Plan to include the entire

estate of the Trust. As part of this report environmentally friendly replacements are suggested in order to

make greater cost savings for the Trust but also reduce any impact on the environment that may be

imposed by the current provision.

During 2020.2021 UWMAT will look to replace inefficient and out of date heating systems with new systems

that give consideration to environmentally sustainable options that take advantage of new technology whilst

maintaining the balance of cost and efficiency across the Trust. The same will apply to the replacement of

windows and doors to ensure heat can be retained in school buildings.

Currently 10 of the 12 academy trust sites use SSE for their electricity supply and 11 use the same

company for gas. SSE offers 100% renewable, clean electricity generated by wind and hydro assets and

the gas offered is 100% renewable from sources such as agricultural materials along with food waste and

wastewater treatment. For UWMAT efficient and renewable sources of energy are a crucial part of this

programme and this consideration will also follow through to the replacement of heating systems within

academies to ensure that any future modifications or replacements are energy efficient.

Over the last financial year UWMAT has had 7 schools take advantage of the Salix Government funding

to replace lighting systems. The LED lighting will reduce the schools electricity usage and the Salix Lon

can be repaid through the savings. LED lighting uses approximately 85% less electricity compared to

conventional lighting.

Funds Held as Custodian Trustee on Behalf of Others

UWMAT does not act as a custodian trustee on behalf of any others.

Auditor

As far as the trustees are aware:

• there is no relevant audit information of which the charitable company's auditor is unaware; and

• the trustees 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.

Signed

Mr A Edwards

Chair of the Trust Board

18 January 2021

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

GOVERNANCE STATEMENT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-16-

Scope of responsibility

As trustees we acknowledge we have overall responsibility for ensuring that University Of Wolverhampton

Multi Academy Trust 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 assurance against material misstatement or loss.

The board of trustees has delegated the day-to-day responsibility to the CEO, 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

University Of Wolverhampton Multi Academy Trust and the Secretary of State for 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

Statement of Trustees' Responsibilities. The board of trustees has formally met 3 times during the year prior

to the Covid-19 pandemic. Attendance during the year at meetings of the board of trustees was as follows:

Trustees

Meetings attended

Out of possible

Mr C Avern (Resigned 7 July 2020)

Mr G Butler (as a representative of the University of Wolverhampton

Social Enterprise board)

Mrs D Cooper (Appointed 26 November 2019)

Mrs J Dunne (Chair of the Trust Board) (Resigned 28 February 2020)

Mr A Edwards (Chair of the Trust Board) (Appointed 25 February 2020)

Mrs C Jenkins (Resigned 28 February 2020)

Mrs M R Kidd

Mrs G Lahiri

Mr R Lockwood

Mr Mike Rickhuss (Appointed 26 November 2019)

Professor M Shaw (CEO and Accounting Officer)

Mrs S Wedgwood (Appointed 26 November 2019)

The Board established a Finance and Resources Committee as a sub-committee of the Board on 12th March

2014, to support them in their responsibilities for issues of financial monitoring, HR, control and governance

by reviewing the comprehensiveness of assurances in meeting the Board and Accounting Officer's assurance

needs and reviewing the reliability and integrity of these assurances.

Membership

The members of the Finance and Resources Committee are:

• Roy Lockwood Chair

• Gary Butler (as a representative of the University of Wolverhampton Social Enterprise board)

• Professor M Shaw (CEO and Accounting Officer)

• Mrs M R Kidd

• Mrs C Jenkins (Resigned 28 February 2020)

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

GOVERNANCE STATEMENT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-17-

Reporting

The Finance and Resources Committee will formally report in writing to the Board and Accounting Officer

after each meeting, timed to support finalisation of the accounts and the Governance Statement, summarising

its conclusions from the work it has done during the year.

Attendance at meetings in the year prior to the Covid-19 pandemic was as follows:

Trustees

Meetings attended

Out of possible

Mr G Butler (as a representative of the University of Wolverhampton

Social Enterprise board)

Mrs C Jenkins (Resigned 28 February 2020)

Professor M Shaw (CEO and Accounting Officer)

Mrs M R Kidd

Mr R Lockwood

Governance during COVID-19

To ensure accountability remained robust and communication channels between Trustees and the Executive

Leadership Team were maintained, the Board approved an addendum to the Scheme of Delegation: Under

Articles 100 - 104 of the Trust’s Articles of Association, the Board had set up Trust Committees that reported

directly to the Board. Article 105 allows for this delegation to be revoked and given the COVID-19 situation,

all separate Trust Committees were suspended.

It was agreed that a Key Group of the Board of Trustees would meet once a month until the beginning of the

2020/21 academic year, assuming no significant changes to the situation, when the arrangement would be

reviewed.

The Key Group was made up of the Chair Elect, Vice Chair, Chairs of each of the Committees and the CEO,

therefore retaining the individual expertise of each Committee. The Key Group was supported and informed

by the Executive Leadership Team as per usual procedures.

Attendance at meetings in the year following the Covid-19 pandemic was as follows:

Trustees

Meetings attended

Out of possible

Mr G Butler (as a representative of the University of Wolverhampton

Social Enterprise board

) 0 5

Mrs D Cooper (Chair of Audit and Risk)

5 5

Mr A Edwards (Chair of Trustees) 5

s M R Kidd 3 5

Mr R Lockwood

4 5

Michelle Shaw (CEO and Accounting Officer) 5

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

GOVERNANCE STATEMENT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-18-

Review of value for money

As accounting officer the CEO has responsibility for ensuring that the academy trust delivers good value in

the use of public resources. The accounting officer understands that value for money refers to the educational

and wider societal outcomes achieved in return for the taxpayer resources received.

The accounting officer considers how the academy trust’s use of its resources has provided good value for

money during each academic year, and reports to the board of trustees where value for money can be

improved, including the use of benchmarking data where available. The accounting officer for the academy

trust has delivered improved value for money during the year by:

• looking at where economies of scale can be achieved across the trust and where costs can be

reduced by streamlining the use of suppliers;

• encouraging knowledge sharing amongst the academies so that the trust is aware of any potential

savings to be made; and

• enhancing engagement with the University's procurement department to initiate cost savings where

possible.

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 University

Of Wolverhampton Multi Academy Trust for the period 1 September 2019 to 31 August 2020 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 academy 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 ongoing process for identifying, evaluating and managing the

academy trust's significant risks that has been in place for the period 1 September 2019 to 31 August 2020

and up to the date of approval of the annual report and accounts. This process is regularly reviewed by the

board of trustees.

The risk and control framework

The academy trust'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:

• comprehensive budgeting and monitoring systems with an annual budget and periodic financial

reports which are reviewed and agreed by the board of trustees;

• regular reviews by the finance and resources committee of reports which indicate financial

performance against 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;

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

GOVERNANCE STATEMENT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-19-

• delegation of authority and segregation of duties;

• Identification and management of risks, by UWMAT and individual academies (as presented by each

LGB).

The board of trustees has considered the need for a specific internal audit function and has decided not to

appoint an internal auditor for the year under review, however, the board is in the process of appointing an

independent company for the current year.

Internal control checks (ICC) have been carried out as routine during the financial year by members of the

finance and UWMAT central team. These checks have included; bank and payroll reconciliations, orders,

invoices, payments, segregation of duties, supplier checks, expenses, procurement and LGB Finance

minutes. Any areas of non-compliance will be forwarded to the relevant Head teacher and LGB chair for

appropriate action and reported back to Finance & Resources Committee.

Review of effectiveness

As accounting officer the Chief Executive has responsibility for reviewing the effectiveness of the system of

internal control. During the year in question the review has been informed by:

• The work of the internal auditor;

• The work of the executive managers within the academy trust who support the reviewer in the

development and maintenance of the internal control framework

• The financial management and governance self-assessment (FMGS) process

• The work of the external auditor

The accounting officer has been advised of the implications of the result of their review of the system of

internal control by the Risk, Audit, Compliance Committee, Executive Managers, FMGS and Finance and

Resources Committee and a plan to address weaknesses, if presented and ensure continuous Improvement

of the system is in place.

Approved by order of the board of trustees on 18 January 2021 and signed on its behalf by:

Mr A Edwards Professor M Shaw

Chair of the Trust Board CEO and Accounting Officer

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

STATEMENT OF REGULARITY, PROPRIETY AND COMPLIANCE

FOR THE YEAR ENDED 31 AUGUST 2020

-20-

As accounting officer of University of Wolverhampton Multi Academy Trust I have considered my

responsibility to notify the academy trust board of trustees and the Education & Skills Funding Agency (ESFA)

of material irregularity, impropriety and non-compliance with terms and conditions of all 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 Academies

Financial Handbook 2019.

I confirm that I and the academy trust's board of trustees are able to identify any material irregular or improper

use of funds by the academy trust, or material non-compliance with the terms and conditions of funding under

the academy trust's funding agreement and the Academies Financial Handbook 2019.

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 ESFA.

Professor M Shaw

Accounting Officer

18 January 2021

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 AUGUST 2020

-21-

The trustees (who are also the directors of University of Wolverhampton Multi Academy Trust for the

purposes of company law) are responsible for preparing the trustees' report and the accounts in accordance

with the Academies Accounts Direction 2019 to 2020 published by the Education & Skills Funding Agency,

United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and

applicable law and regulations.

Company law requires the trustees to prepare accounts for each financial year. Under company law, the

trustees must not approve the accounts 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 accounts, the trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP 2018 and the Academies Accounts

Direction 2019 to 2020;

• make judgements and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material

departures disclosed and explained in the accounts; and

• prepare the accounts on the going concern basis unless it is inappropriate to presume that the

charitable company will continue in business.

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 accounts 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 conform with the requirements both of propriety and of good financial

management. They are also responsible for ensuring that grants received from ESFA/DfE 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 accounts may differ from legislation in other jurisdictions.

Approved by order of the members of the board of trustees on 18 January 2021 and signed on its behalf by:

Mr A Edwards

Chair of the Trust Board

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UNIVERSITY OF

WOLVERHAMPTON MULTI ACADEMY TRUST

FOR THE YEAR ENDED 31 AUGUST 2020

-22-

Opinion

We have audited the financial statements of University of Wolverhampton Multi Academy Trust (“the

charitable company”) for the year ended 31 August 2020 which comprise the balance sheet, statement of

financial activities including income and expenditure accounts, statement of cash flows and related notes,

including the accounting policies in note 1.

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 2020, and of the

charitable company’s incoming resources and application of resources, including the charitable

company’s income and expenditure, for the year then ended;

• have been properly prepared in accordance with UK accounting standards, including FRS 102 The

Financial Reporting Standard applicable in the UK and Republic of Ireland;

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

• have been prepared in accordance with the Charities SORP (FRS 102) and the Academies Accounts

Direction 2019 to 2020 issued by the Education and Skills Funding Agency.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and

applicable law. Our responsibilities are described below. We have fulfilled our ethical responsibilities under,

and are independent of the charitable company in accordance with, UK ethical requirements including the

FRC Ethical Standard. We believe that the audit evidence we have obtained is a sufficient and appropriate

basis for our opinion.

Going concern

The trustees have prepared the financial statements on the going concern basis as they do not intend to

liquidate the charitable company or to cease its operations, and as they have concluded that the charitable

company’s financial position means that this is realistic. They have also concluded that there are no material

uncertainties that could have cast significant doubt over its ability to continue as a going concern for at least

a year from the date of approval of the financial statements (“the going concern period”).

We are required to report to you if we have concluded that the use of the going concern basis of accounting

is inappropriate or there is an undisclosed material uncertainty that may cast significant doubt over the use

of that basis for a period of at least a year from the date of approval of the financial statements. In our

evaluation of the trustees’ conclusions, we considered the inherent risks to the charitable company’s business

model and analysed how those risks might affect the charitable company’s financial resources or ability to

continue operations over the going concern period. We have nothing to report in these respects.

However, as we cannot predict all future events or conditions and as subsequent events may result in

outcomes that are inconsistent with judgements that were reasonable at the time they were made, the

absence of reference to a material uncertainty in this auditor's report is not a guarantee that the charitable

company will continue in operation.

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UNIVERSITY OF

WOLVERHAMPTON MULTI ACADEMY TRUST (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-23-

Other information

The trustees are responsible for the other information, which comprises the Trustees report, Governance

Our opinion on the financial statements does not cover the other information and, accordingly, we do not

express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether, based on our financial

statements audit work, the information therein is materially misstated or inconsistent with the financial

statements or our audit knowledge. Based solely on that work:

• we have not identified material misstatements in the other information;

• in our opinion the information given in the Trustees' Annual Report, which constitutes the Strategic

Report and the Directors’ Report for the financial year, is consistent with the financial statements; and

• in our opinion those reports have been prepared in accordance with the Companies Act 2006.

Matters on which we are required to report by exception

Under the Companies Act 2006, we are required to report to you if, in our opinion:

• adequate accounting records have not been kept by the charitable company, or returns adequate for our

audit have not been received from branches not visited by us; or

• the charitable company’s financial statements are not in agreement with the accounting records and

returns; or

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

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

We have nothing to report in these respects.

Trustees’ responsibilities

As explained more fully in their statement set out on page 4, the trustees (who are the directors of the

charitable company for the purposes of company law) are responsible for: the preparation of the financial

statements and for being satisfied that they give a true and fair view; such internal control as they determine

is necessary to enable the preparation of financial statements that are free from material misstatement,

whether due to fraud or error; assessing the charitable company’s ability to continue as a going concern,

disclosing, as applicable, matters related to going concern; and using the going concern basis of accounting

unless they either intend to liquidate the charitable company or to cease operations, or have no realistic

alternative but to do so.

Auditor’s responsibilities

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are

free from material misstatement, whether due to fraud or error, and to issue our opinion in an auditor’s report.

Reasonable assurance is a high level of assurance, but does not guarantee that an audit conducted in

accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can

arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably

be expected to influence the economic decisions of users taken on the basis of the financial statements.

A fuller description of our responsibilities is provided on the FRC’s website at

www.frc.org.uk/auditorsresponsibilities

The purpose of our audit work and to whom we owe our responsibilities

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF UNIVERSITY OF

WOLVERHAMPTON MULTI ACADEMY TRUST (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-24-

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of

Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the

charitable company’s members those matters we are required to state to them in an auditors’ report and for

no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone

other than the charitable company and its members as a body, for our audit work, for this report, or for the

opinions we have formed.

Mark Dawson (Senior Statutory Auditor)

for and on behalf of KPMG LLP, Statutory Auditor

Chartered Accountants

One Snowhill

Snow Hill Queensway

Birmingham

B4 6GH

29 January 2021

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON

REGULARITY TO UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY

TRUST AND THE EDUCATION & SKILLS FUNDING AGENCY

FOR THE YEAR ENDED 31 AUGUST 2020

-25-

In accordance with the terms of our engagement letter dated 4

June 2018 and further to the requirements

of the Education and Skills Funding Agency (ESFA) as included in the Academies Accounts Direction 2019

to 2020, we have carried out an engagement to obtain limited assurance about whether the expenditure

disbursed and income received by University of Wolverhampton Multi Academy Trust during the period 1

September 2019 to 31 August 2020 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 University of Wolverhampton Multi Academy Trust (the Academy Trust) and

ESFA in accordance with the terms of our engagement letter. Our work has been undertaken so that we

might state to the Academy Trust and 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 Academy Trust and ESFA, for our work, for this report, or for the conclusion we have formed.

Respective responsibilities of the Academy Trust’s accounting officer and the reporting accountant

The accounting officer is responsible, under the requirements of the Academy Trust’s funding agreement

with the Secretary of State for Education dated 23 March 2013 and the Academies Financial Handbook,

extant from 1 September 2019, 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 2019 to 2020. 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 2019 to 31 August 2020 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 2019 to 2020 issued

by 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.

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 m atters

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 included:

• Documenting the framework of authorities which govern the activities of the Academy Trust;

• Reviewing the evidence supporting the representations included in the Accounting Officer’s

statement on regularity, propriety and compliance with the framework of authorities;

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

INDEPENDENT REPORTING ACCOUNTANT'S ASSURANCE REPORT ON

REGULARITY TO UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY

TRUST AND THE EDUCATION & SKILLS FUNDING AGENCY (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-26-

• Undertaking a risk assessment based on our understanding of the general control environment and

any weaknesses in internal controls identified by our audit of the financial statements;

• Reviewing the output from the self-assessment questionnaire completed by the Accounting Officer

on behalf of the Governing Body;

• Testing compliance with delegated authorities for a sample of material transactions;

• Testing transactions with connected parties to determine whether the Trust has complied with the

‘at cost’ requirements of the Academies Financial Handbook 2019;

• Confirming through enquiry and sample testing that the Trust has complied with its procurement

policies and that these policies comply with delegated authorities; and

• Reviewing any evidence of impropriety resulting from our work and determining whether it was

significant enough to be referred to in our regularity report.

This list is not exhaustive and we performed additional procedures designed to provide us with sufficient

appropriate evidence to express a negative conclusion on regularity consistent with the requirements of

Annex B of the Academies Accounts Direction 2019 to 2020.

Conclusion

In the course of our work, nothing has come to our attention which suggests that in all material respects the

expenditure disbursed and income received during the period 1 September 2019 to 31 August 2020 has not

been applied to purposes intended by Parliament and the financial transactions do not conform to the

authorities which govern them.

Mark Dawson

Reporting Accountant

For and on behalf of KPMG LLP

Chartered Accountants

One Snowhill

Snow Hill Queensway

Birmingham

B4 6GH

29 January 2021

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

STATEMENT OF FINANCIAL ACTIVITIES

INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 AUGUST 2020

-27-

Unrestricted

Restricted funds:

Total

Funds

General

Fixed asset

2020

2019

Notes

£000

Income and endowments from:

Donations and capital grants

691

715

832

Charitable activities:

- Funding for educational operations

119

28,137

28,256

28,924

Other trading activities

470

198

668

1,391

Investments

Total

595

28,357

691

29,643

31,158

Expenditure on:

Raising funds

Charitable activities:

- Educational operations

332

31,122

725

32,179

31,291

Charitable expenditure - transfer of

existing academy out of the trust

21,749

Total

360

31,122

725

32,207

53,083

Net income/(expenditure)

235

(2,765)

(34)

(2,564)

(21,925)

Transfers between funds

629

(710)

Other recognised gains/(losses)

Actuarial (losses)/gains on defined

benefit pension schemes

(3,726)

(3,622)

Net movement in funds

864

(7,201)

(6,290)

(25,547)

Reconciliation of funds

Total funds brought forward

649

(21,875)

70,609

49,383

74,930

Total funds carried forward

1,513

(29,076)

70,656

43,093

49,383

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED)

INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 AUGUST 2020

-28-

Comparative information

Unrestricted

Restricted funds:

Total

ended 31 August 2019

Funds

General

Fixed asset

2019

Notes

£000

Income and endowments from:

Donations and capital grants

810

832

Charitable activities:

- Funding for educational operations

28,924

Other trading activities

1,000

391

1,391

Investments

Total

1,024

29,324

810

31,158

Expenditure on:

Raising funds

Charitable activities:

- Educational operations

714

29,861

716

31,291

Charitable expenditure – transfer of existing

academy out of trust

(2,970)

24,719

21,749

Total

714

26,934

25,435

53,083

Net income/(expenditure)

310

2,390

(24,625)

(21,925)

Transfers between funds

(936)

936

Other recognised gains/(losses)

Actuarial gains on defined benefit pension schemes

(3,622)

Net movement in funds

(626)

(296)

(24,625)

(25,547)

Reconciliation of funds

Total funds brought forward

1,275

(21,579)

95,234

74,930

Total funds carried forward

649

(21,875)

70,609

49,383

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

BALANCE SHEET

AS AT 31 AUGUST 2020

-29-

2020

2019

Notes

£000

Fixed assets

Tangible assets

69,170

69,227

Current assets

Stocks

Debtors

1,829

3,560

Cash at bank and in hand

5,959

3,612

7,788

7,177

Current liabilities

Creditors: amounts falling due within one

year

(3,241)

(2,410)

Net current assets

4,547

4,767

Total assets less current liabilities

73,717

73,994

Creditors: amounts falling due after more

than one year

(88)

(558)

Net assets before defined benefit pension

scheme liability

73,629

73,436

Defined benefit pension scheme liability

(30,536)

(24,053)

Total net assets

43,093

49,383

Funds of the academy trust:

Restricted funds

- Fixed asset funds

70,656

70,609

- Restricted income funds

1,460

2,178

- Pension reserve

(30,536)

(24,053)

Total restricted funds

41,580

48,734

Unrestricted income funds

1,513

649

Total funds

43,093

49,383

The financial statements on pages 27 to 55 were approved by the trustees and authorised for issue on 18 January

2021 and are signed on their behalf by:

Mr A Edwards

Chair of the Trust Board Company Number 08255492

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 AUGUST 2020

-30-

2020

2019

Notes

£000

Cash flows from operating activities

Net cash (used in)/provided by operating

activities

2,791

(3,659)

Cash flows from investing activities

Dividends, interest and rents from investments

Capital grants from DfE Group

691

810

Purchase of tangible fixed assets

(668)

(662)

Net cash provided by investing activities

159

Cash flows from financing activities

New ESFA loan

558

New Salix Loans

100

Repayment of Salix Loans

(12)

Repayment of ESFA loan

(558)

Net cash provided by/(used in) financing activities

(470)

558

Net (decrease)/increase in cash and cash

equivalents in the reporting period

2,347

(2,942)

Cash and cash equivalents at beginning of the year

3,612

6,554

Cash and cash equivalents at end of the year

5,959

3,612

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2020

-31-

Accounting policies

A summary of the principal accounting policies adopted (which have been applied consistently, except where

noted), judgements and key sources of estimation uncertainty, is set out below.

1.1 Basis of preparation

The financial statements of the academy trust, which is a public benefit entity under FRS 102, have been

prepared under the historical cost convention 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 2019 to 2020 issued by ESFA, the Charities Act 2011 and the Companies

Act 2006.

University of Wolverhampton Multi Academy Trust meets the definition of a public benefit entity under FRS

102.

1.2 Going concern

The financial statements have been prepared on a going concern basis which the trustees consider to be

appropriate for the following reasons.

The trust receives funding from the Secretary of State for Education under the Academies Act 2010 in the

form of a grant towards the normal running costs and capital expenditure of each of its Academies, based on

projected student numbers. The amount of grant funding is determined annually by the Secretary of State.

The trustees have prepared cash flow forecasts for a period of 12 months from the date of approval of these

financial statements. After reviewing these forecasts, including the level of grant funding for 2020-21 changes

arising from the Covid-19 pandemic and projected student numbers for 2021-22, the trustees are of the

opinion that, taking account of severe but plausible downsides, the trust has adequate resources to continue

to meet its liabilities over the period of 12 months from the date of approval of the financial statements (the

going concern assessment period).

Consequently, the trustees are confident that the trust will have sufficient funds to continue to meet its

liabilities as they fall due for at least 12 months from the date of approval of the financial statements and

therefore have prepared the financial statements on a going concern basis.

1.3 Income

All incoming resources are recognised when the academy trust has entitlement to the funds, the receipt is

probable and the amount can be measured reliably.

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-32-

Accounting policies

Grants

Grants are included in the statement of financial activities on a receivable basis. The balance of income

received for specific purposes but not expended during the period is shown in the relevant funds on the

balance sheet. Where income is received in advance of 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 statement of financial activities in the period for which it is

receivable, and any abatement in respect of the period is deducted from income and recognised as a liability.

Capital grants are recognised in full when there is an unconditional entitlement to the grant. Unspent amounts

of capital grants are reflected in the balance sheet in the restricted fixed asset fund. Capital grants are

recognised when there is entitlement and are not deferred over the life of the asset on which they are

expended.

Sponsorship income

Sponsorship income provided to the academy trust which amounts to a donation is recognised in the

statement of financial activities in the period in which it is receivable (where there are no performance-related

conditions), where the receipt is probable and it can be measured reliably.

Donations

Donations are recognised on a receivable basis (where there are no performance-related conditions) where

the receipt is probable 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 extent the

academy trust has provided the goods or services.

Donated goods, facilities and services

Goods donated for resale are included at fair value, being the expected proceeds from sale less the expected

costs of sale. If it is practical to assess the fair value at receipt, it is recognised in stock and ‘Income from

other trading activities’. Upon sale, the value of the stock is charged against ‘Income from other trading

activities’ and the proceeds are recognised as ‘Income from other trading activities’. Where it is impractical

to fair value the items due to the volume of low value items they are not recognised in the accounts until they

are sold. This income is recognised within ‘Income from other trading activities’.

Donated fixed assets

Donated fixed assets are measured at fair value unless it is impractical to measure this reliably, in which

case the cost of the item to the donor is used. The gain is recognised as income from donations and a

corresponding amount is included in the appropriate fixed asset category and depreciated over the useful

economic life in accordance with the academy trust‘s accounting policies.

1.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a

third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount

of the obligation can be measured reliably.

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-33-

Accounting policies

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 are allocated on the portion of the asset’s use.

All resources expended are inclusive of irrecoverable VAT.

Expenditure on raising funds

This includes all expenditure incurred by the academy trust to raise funds for its charitable purposes and

includes costs of all fundraising activities events and non-charitable trading.

Charitable activities

These are costs incurred on the academy trust's educational operations, including support costs and costs

relating to the governance of the academy trust apportioned to charitable activities.

1.5 Tangible fixed assets and depreciation

Assets costing £1,000 or more are capitalised as tangible fixed assets and are carried at cost, net of

depreciation and any provision for impairment.

Where tangible fixed assets have been acquired with the aid of specific grants, either from the government

or from the private sector, they are included in the balance sheet at cost and depreciated over their expected

useful economic life. Where there are specific conditions attached to the funding that require the continued

use of the asset, the related grants are credited to a restricted fixed asset fund in the statement of financial

activities and carried forward in the balance sheet. Depreciation on the relevant assets is charged directly to

the restricted fixed asset fund in the statement of financial activities. Where tangible fixed assets have been

acquired with unrestricted funds, depreciation on such assets is charged to the unrestricted fund.

Depreciation is provided on all tangible fixed assets other than freehold land and assets under construction,

at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life, as

follows:

Leasehold land and buildings Over 125 years

Leasehold building improvements Over 25 years

Furniture and equipment 25%-33% per annum

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.

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 the settlement

can be estimated reliably. Liabilities are recognised at the amount that the academy trust anticipates it will

pay to settle the debt or the amount it has received as advanced payments for the goods of services it must

provide.

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-34-

Accounting policies

1.7 Provisions

Provisions are recognised when the academy trust has an obligation at the reporting date as a result of a

past event which it is probable will result in the transfer of economic benefits and the obligation can be

estimated reliably.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the

effect of the time value of money is material, the provision is based on the present value of those amounts,

discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the

discount is recognised within interest payable and similar charges.

1.8 Leased assets

Rentals payable under operating leases are charged against income on a straight line basis over the period

of the lease.

1.9 Financial instruments

The academy trust only holds basic financial instruments as defined in FRS 102. The financial assets and

financial liabilities of the academy trust and their measurement basis are as follows.

Financial assets

Trade and other debtors are basic financial instruments and are debt instruments measured at amortised

cost. Prepayments are not financial instruments.

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 amortised cost.

Taxation and social security are not included in the financial instruments disclosure definition.

Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and

there is an obligation to deliver services rather than cash or another financial instrument.

1.10 Stock

Stock is valued at the lower of cost and net realisable value. Net realisable value is based on estimated

selling price less further costs to completion and disposal. Provision is made for obsolete and slow moving

stock.

1.11 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 potentially exempt from taxation in respect of income or capital gains received within

categories covered by chapter 3 part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of

Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable

purposes.

1.12 Pensions 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 and the

assets are held separately from those of the academy trust.

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-35-

Accounting policies

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 projected unit credit method. The TPS is an unfunded

multi-employer scheme with no underlying assets to assign between employers. Consequently, the TPS is

treated as a defined contribution scheme for accounting purposes and the contributions are recognised in

the period to which they relate.

The LGPS is a funded multi-employer 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 on the scheme assets 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.

The pension increase assumption is set in line with the Consumer Prices Index (CPI) assumption. As a

market in CPI linked bonds does not exist, an estimate is used to calculate the long-term gap between RPI

and CPI to derive a CPI assumption for accounting purposes. The RPI-CPI gap used this year is 2.25%

(2019: 1.90%). A 0.1% change in assumption results in a change of £2.2m to the Defined Benefit Obligation,

sensitivity of the obligation to the principle assumptions are outlined under critical accounting judgements.

In determining the valuation of the West Midlands Pension Fund and Staffordshire Pension Fund, a number

of key assumptions have been made. The key assumptions, which are given below, are

• Discount rate;

• Inflation rate; and

• Life expectancy

The asset values are reported using estimated asset allocations prepared by the scheme Actuary. This asset

value is calculated at each triennial valuation. Thereafter it is rolled forward to accounting dates using

investment returns, contributions received, and benefits paid out. During each annual reporting period

between triennial valuations, asset returns are estimated using 11 months of market experience and one

month of extrapolation being assumed.

1.13 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.

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-36-

Accounting policies

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 and Skills Funding Agency.

1.14 Agency arrangements

The Academy trust acts as an agent in distributing 16-19 bursary funds from the ESFA. Payments received

from the ESFA and subsequent disbursements to students are excluded from the Statement of Financial

Activities as the academy trust does not have control over the charitable application of the funds. The funds

received and paid and balances held are disclosed in note 25.

Critical accounting estimates and areas of judgement

Accounting estimates and judgements are continually evaluated and are based on historical experience and

other factors, including expectations of future events that are believed to be reasonable under the

circumstances.

Critical accounting estimates and assumptions

The 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 or income for pensions include the discount rate. Any changes in these

assumptions, which are disclosed in note 21, will impact the carrying amount of the pension liability. A full

actuarial valuation was performed at 31 March 2020 and has been used by the actuary in valuing the

pension’s liability at 31 August 2020. Any differences between the figures derived from the roll forward

approach and a full actuarial valuation would impact on the carrying amount of the pension liability.

Critical areas of judgement

There have been no areas of critical judgement made during the period of account that will have a significant

effect on the amounts recognised in the financial statements

Donations and capital grants

Unrestricted

Restricted

Total

funds

2020

2019

£000

Private sponsorship

(1)

Capital grants

691

810

Other donations

713

715

832

2019 total

819

832

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-37-

Funding for the academy trust's educational operations

Unrestricted

Restricted

Total

funds

2020

2019

£000

DfE / ESFA grants

General annual grant (GAG)

22,608

23,949

Pupil Premium

2,497

2,564

Other DfE group grants

1,578

652

26,683

27,165

Other government grants

Local authority grants

1,337

1,338

1,759

Coronavirus exceptional funding support

Other Income from the academy trusts educational

operations

110

117

227

Total funding

119

28,137

28,256

28,924

2019 total

28,924

Other trading activities

Unrestricted

Restricted

Total

funds

2020

2019

£000

Hire of facilities

(114)

118

Catering income

243

446

Extended school activities

133

Music tuition

Parental contributions

204

Other income

206

304

612

470

198

668

1,391

2019 total

1,000

391

1,391

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-38-

Investment income

Unrestricted

Restricted

Total

funds

2020

2019

£000

Short term deposits

2019 total

Expenditure

Non Pay Expenditure

Total

Staff costs

Premises

Other

2020

2019

£000

Expenditure on raising funds

- Direct costs

Academy's educational operations

- Direct costs

18.083

690

2,640

21,413

19,395

- Allocated support costs

4,878

1,416

4,472

10,766

11,896

22,981

2,112

7,114

32,207

31,334

2019 total

23,209

2,218

5,907

31,334

Expenditure

Net income/(expenditure) for the year includes:

2020

2019

£000

Fees payable to auditor for:

- Audit

- Other services

Operating lease rentals

256

Depreciation of tangible fixed assets

725

716

Net interest on defined benefit pension liability

447

498

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-39-

Central services

The academy trust has provided the following central services to its academies during the year:

• human resources;

• financial services;

• legal services;

• educational support services;

• Others as arising.

The academy trust charges for these services based on a fee per contract which totalled £1,578,698 (2019:

£1,827,056) for the financial year.

The actual amounts charged during the year were as follows:

2020

2019

£000

ACE Academy

Albert Bradbeer Academy

128

139

Edgar Stammers Primary Academy

103

115

Fairway Primary Academy

Featherstone Academy

Heathlands Academy

132

147

Pye Green Academy

103

118

Reaside Primary Academy

Smestow School

315

328

Tame Valley Primary Academy

The Orchards Primary Academy

Wednesfield High Specialist Engineering Academy

301

326

Woodhouse Primary Academy

135

156

1,579

1,827

Charitable activities

Unrestricted

Restricted

Total

funds

2020

2019

£000

Direct costs

Educational operations

21,413

19,395

Support costs

Educational operations

332

10,434

10,766

11,896

332

31,847

32,179

31,291

2019 total

714

30,577

31,291

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-40-

2020

2019

£000

Analysis of support costs

Support staff costs

4,898

6,009

Depreciation

355

Technology costs

208

526

Premises costs

1,245

1,502

Other support costs

4,273

2,941

Governance costs

107

474

10,766

11,896

Staff

Staff costs

Staff costs during the year were:

2020

2019

£000

Wages and salaries

16,113

16,224

Social security costs

1,507

1,503

Pension costs

4,263

4,016

Apprenticeship levy

Staff costs

21,949

21,818

Agency staff costs

767

1,185

Staff restructuring costs

Staff development and other staff costs

176

157

Total staff expenditure

22,981

23,209

Staff restructuring costs & Operating costs of defined benefit pension scheme

comprise:

Severance payments

Pension Strain

156

Non statutory/non-contractual staff severance payments

Included in staff restructuring costs are non-statutory non contractual severance payments totalling £88,369

(2019:£48,553). Individually, the payments were £12,870, £5,845, £16,089, £7,376,

£6,820, £21,669, £8,553

& £1,096.

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-41-

Staff numbers

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

2020

2019

Number

Teachers

209

271

Administration and support

380

412

Management

650

725

Staff

Higher paid staff

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

was:

2020

2019

Number

£60,001 - £70,000

£70,001 - £80,000

£80,001 - £90,000

£110,001 - £120,000

Key management personnel

The key management personnel of the academy trust comprise the trustees and the senior management team

as listed on page 1. The total amount of

employee benefits (including employer pension contributions) received

by key management personnel for their services to the academy trust was £410,402 (2019: £515,163).

11 Trustees' remuneration and expenses

One or more of the trustees has been paid remuneration or has received other benefits from an employment

with the academy trust. The CEO and other staff trustees only receive remuneration in respect of services

they provide undertaking the roles of CEO and staff members under their contracts of employment, and not

in respect of their services as trustees.

The value of trustees' remuneration and other benefits was as follows:

1. Remuneration £0 (2019: £30,000 - £35,000)

12 Trustees and officers insurance

In accordance with normal commercial practice, the academy trust has purchased insurance to protect

trustees and officers from claims arising from negligent acts, errors or omissions occurring whilst on academy

trust business. The insurance provides cover up to £5,000,000 on any one claim. It is not possible to quantify

the trustees and officers indemnity element from the overall cost of insurance.

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-42-

Tangible fixed assets

Leasehold

land and

buildings

Furniture

and

equipment

Motor

vehicles

Total

£000

Cost

At 1 September 2019

72,120

2,658

74,795

Additions

517

151

668

At 31 August 2020

72,637

2,695

75,463

Depreciation

At 1 September 2019

3,012

2,539

5,568

Charge for the year

607

118

725

At 31 August 2020

3,619

2,658

6,293

Net book value

At 31 August 2020

69,018

152

69,170

At 31 August 2019

69,108

119

69,227

The academy trust continues to occupy the premises which were previously occupied by the predecessor

schools on a long term basis, and are held under 125 year leases. The legal owners are the local authorities

associated with each academy.

Stocks

2020

2019

£000

Stock on hand

Debtors

2020

2019

£000

Trade debtors

185

196

VAT recoverable

747

2,273

Other debtors

254

Prepayments and accrued income

896

837

1,829

3,560

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-43-

Creditors: amounts falling due within one year

2020

2019

£000

Other loans

Trade creditors

621

324

Other taxation and social security

376

356

Other creditors

752

391

Accruals and deferred income

1,480

1,339

3,241

2,410

Creditors: amounts falling due after more than one year

2020

2019

£000

Other loans

558

Analysis of loans

Wholly repayable within five years

100

558

Less: included in current liabilities

(12)

Amounts included above

558

Loan maturity

The loans of £100,000 (2019: £558,000) within the academy trust at the year-end were received from Salix in

relation to lighting projects within the academies and are due to be repaid over 5 years.

The ESFA loan outstanding at the end of 2019 for £558,000 was repaid in full and in advance by the Trust,

during the 2019-20 academic year.

Deferred income

2020

2019

£000

Deferred income is included within:

Creditors due within one year

308

229

Deferred income at 1 September 2019

229

286

Released from previous years

(229)

(286)

Resources deferred in the year

308

229

Deferred income at 31 August 2020

308

229

At the balance sheet date the academy trust was holding funds received in advance for Universal Infant Free

School Meals, Sports Grant, Trip income, Rates relief, After School Club and LAC/SEN funding for 2020/21.

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-44-

Funds

Balance at

Gains,

Balance at

1 September

losses and

31 August

2019

Income

Expenditure

transfers

2020

£000

Restricted general funds

General Annual Grant (GAG)

196

22,608

(23,258)

1,157

703

Other DfE / ESFA grants

827

4,075

(3,667)

(772)

463

Other government grants

936

1,454

(1,256)

(934)

200

Other restricted funds

219

220

(184)

(161)

Pension reserve

(24,053)

(2,757)

(3,726)

(30,536)

(21,875)

28,357

(31,122)

(4,436)

(29,075)

Restricted fixed asset funds

Inherited on conversion

61,739

(522)

61,217

DfE group capital grants

2,969

691

(139)

(60)

3,461

Capital expenditure from GAG

747

(23)

755

SALIX

(3)

107

Private sector capital

sponsorship

5,154

(38)

5116

70,609

691

(725)

70,656

Total restricted funds

48,734

29,048

(31,847)

(4,355)

41,580

Unrestricted funds

General funds

649

595

(360)

629

1,513

Total funds

49,383

29,643

(32,207)

(3,726)

43,093

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-45-

19 Funds

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

General Annual Grant

The general annual grant must be used for the normal running costs of the academies in the academy trust.

There are no restrictions on the allowable balance for carry forward, but the academy trust bears due regard

to the guidelines set out by the Charity Commission.

The academy trust funding agreement for 31 August 2020 contained no limits on the amount of the general

annual grant that is permitted to be carried forward from one year to the next.

Other DfE/ESFA Grants

During the year, the academy trust received additional grants from the ESFA which were for the purposes of

improving the provision of education for pupils from disadvantaged backgrounds who attend the academies

within the academy trust. Expenditure relating to these grants is controlled and used specifically as set out

in the conditions of the grant.

Pension Reserve

The restricted pension reserve represents the deficit on the academy trust's share of the Local Government

Pension Scheme as at 31 August 2020.

Other Government Grants

During the year, the academy trust received other grants from the LEA and other bodies. Where grants were

received with specific conditions attached, the expenditure on such grants was controlled and properly used.

Other restricted reserves

During the year, the academy trust received other income with specific conditions attached. The expenditure

on such income was controlled and properly used.

Restricted fixed asset funds

During the year, the academy trust received capital grants from the ESFA of £691,000 (2019: £810,000)

which represents School Condition Allocation and Devolved Formula Capital.

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-46-

Funds

Comparative information in respect of the preceding period is as follows:

Balance at

Gains,

Balance at

1 September

losses and

31 August

2018

Income

Expenditure

transfers

2019

£000

Restricted general funds

General Annual Grant (GAG)

434

23,949

(25,567)

1,380

196

Other DfE / ESFA grants

3,216

(2,066)

(354)

827

Other government grants

1,759

(887)

(18)

936

Other restricted funds

400

(111)

(72)

219

Pension reserve

(22,128)

1,697

(3,622)

(24,053)

(21,579)

29,324

(26,934)

(2,686)

(21,875)

Restricted fixed asset funds

Transfer on conversion

86,414

(24,674)

61,740

DfE group capital grants

2,912

810

(753)

2,969

Capital expenditure from GAG

755

(8)

747

Private sector capital

sponsorship

5,153

95,234

810

(25,435)

70,609

Total restricted funds

73,655

30,134

(52,369)

(2,686)

48,734

Unrestricted funds

General funds

1,275

1,024

(714)

(936)

649

Total funds

74,930

31,158

(53,083)

(3,622)

49,383

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-47-

Funds

Total funds analysis by academy

2020

2019

Fund balances at 31 August 2020 were allocated as follows:

£000

ACE Academy

Albert Bradbeer Primary Academy

Edgar Stammers Primary Academy

(11)

(1)

Fairway Primary Academy

Featherstone Academy

Heathlands Primary Academy

476

489

The Orchards Primary Academy

248

189

Pye Green Academy

400

428

Reaside Academy

261

266

Smestow School

(621)

Tame Valley Academy

678

620

Wednesfield High Specialist Engineering Academy

342

119

Woodhouse Primary Academy

305

364

Central services

237

819

Total before fixed assets fund and pension reserve

2,973

2,830

Restricted fixed asset fund

70,656

70,609

Pension reserve

(30,536)

(24,053)

Total funds

43,093

49,383

Edgar Stammers Primary is carrying a net deficit of £11k on these funds:

The trust is working closely with the academy to ensure that a suitable staffing structure is in place and that

budgets are produced and maintained to support the academy to recoup the losses incurred.

Work is currently on going through Challenge and Support meetings with the Head teacher and the Executive

Leadership team to support the academy.

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-48-

Funds

Total cost analysis by academy

Expenditure incurred by each academy during the year was as follows:

Teaching

Other costs

educational

Other

Educational

excluding

Total

support

staff costs

supplies

depreciation

2020

2019

£000

The Ace Academy

1,343

Albert Bradbeer Primary

Academy

1,498

674

318

2,562

2,352

Edgar Stammers Primary

Academy

1,355

575

258

2,287

1,764

Fairway Primary Academy

755

360

145

1,331

1,166

Featherstone Academy

808

341

118

155

1,422

1,134

Heathlands Primary

Academy

1,581

629

100

301

2,611

2,303

The Orchards Primary

Academy

815

351

107

176

1,449

1,293

Pye Green Academy

1,347

306

240

1,991

1,804

Reaside Academy

886

267

137

214

1,504

1,377

Smestow School

3,294

1,092

572

449

5,407

5,044

Tame Valley Academy

828

275

103

192

1,398

1,167

Wednesfield High

Specialist Engineering

Academy

2,769

1,002

294

745

4,810

4,390

Woodhouse Primary

Academy

1,820

886

130

183

3,019

2,539

Central services

140

844

310

397

1,691

1,814

17,896

7,602

2,211

3,773

31,482

29,490

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-49-

Analysis of net assets between funds

Unrestricted

Restricted funds:

Total

Funds

General

Fixed asset

Funds

£000

Fund balances at 31 August 2020 are

represented by:

Tangible fixed assets

69,170

Current assets

1,513

4,789

1,486

7,788

Creditors falling due within one year

(3,241)

Creditors falling due after one year

(88)

Defined benefit pension liability

(30,536)

Total net assets

1,513

(29,076)

70,656

43,093

Analysis of net assets between funds

Unrestricted

Restricted funds:

Total

Funds

General

Fixed asset

Funds

£000

Fund balances at 31 August 2019 are

represented by:

Tangible fixed assets

69,227

Current assets

454

5,341

1,382

7,177

Creditors falling due within one year

195

(2,605)

(2,410)

Creditors falling due after one year

(558)

Defined benefit pension liability

(24,053)

Total net assets

649

(21,875)

70,609

49,383

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 WM Pension Fund and Staffordshire 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 2016, and that of the LGPS related to

the period ended 31 March 2019.

Contributions amounting to £756,969 (2019: £317,578) were payable to the schemes at 31 August 2020 and

are included within creditors.

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-50-

Pension and similar obligations

Teachers' Pension Scheme

Introduction

The Teachers' Pension Scheme (TPS or scheme) is a statutory, unfunded, defined benefit occupational

scheme, governed by the Teachers' Pensions Regulations 2010 (as amended), and the Teachers’ Pension

Scheme Regulations 2014 (as amended). These regulations apply to teachers in schools and other

educational establishments, including academies, in England and Wales that are maintained by local

authorities. In addition, teachers in many independent and voluntary-aided schools and teachers and

lecturers in some establishments of further and higher education may be eligible for membership.

Membership is automatic for full-time teachers and lecturers and, from 1 January 2007, automatic too for

teachers and lecturers in part-time employment following appointment or a change of contract. Teachers

and lecturers are able to opt out of the TPS.

THE TEACHERS' PENSION BUDGETING AND VALUATION ACCOUNT

Although members may be employed by various bodies, their retirement and other pension benefits are set

out in regulations made under the Superannuation Act (1972) and Public Service Pensions Act (2013) and

are paid by public funds provided by Parliament. The TPS is an unfunded scheme and members contribute

on a ’pay as you go ‘basis – contributions from members, along with those made by employers, are credited

to the Exchequer under arrangements governed by the above Acts.

The Teachers' Pensions Regulations 2010 require an annual account, the Teachers' Pension Budgeting and

Valuation Account, to be kept of receipts and expenditure (including the cost of pension increases). From 1

April 2001, the Account has been credited with a real rate of return, which is equivalent to assuming that the

balance in the Account is invested in notional investments that produce that real rate of return.

The TPS is an unfunded scheme and members contribute on a 'pay as you go' basis - these contributions

along with those made by employers are credited to the Exchequer. Retirement and other pension benefits

are paid by public funds provided by Parliament.

Valuation of the Teachers’ Pension Scheme

The latest valuation of the Teachers’ Pension Scheme has now taken place, in line with directions issued by

HM Treasury and using membership data as at 31 March 2016. As a result of this valuation TPS employers

are paying an increased contribution rate of 23.68% from September 2019 (this includes the administration

levy of 0.8%). The timing of the implementation is to align its introduction with employers’ budget planning

cycles. Until then, employers will pay the current rate of 16.48%.

A copy of the latest valuation report can be found by following this link to the Teachers’ Pension Scheme

website

Scheme Changes

The arrangements for a reformed Teachers’ Pension Scheme, in line with the recommendations made by

Lord Hutton, in particular the introduction of a Career Average Revalued Earnings (CARE) scheme, were

implemented from 1 April 2015.

In December 2019, the Court of Appeal held that transitional protection provisions contained in the reformed

judicial and firefighter pension schemes, introduced as part of public service pension reforms in 2015, gave

rise to direct age discrimination and were therefore unlawful. The Supreme Court, in a decision made in June

2020, have rejected the Government’s application for permission to appeal the Court of Appeal’s ruling. The

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-51-

Pension and similar obligations

case will now be referred to an Employment Tribunal for a decision regarding the remedy which will need to

be offered to those members of the two schemes who were subject of the age discrimination.

HM Treasury are clear that the ruling has implications for the other public service schemes, including the

Teachers’ Pension Scheme. Those implications are currently being considered and any impact on scheme

costs is expected to be looked at within the next scheme valuation, which is currently scheduled to be based

on April 2020 data and implemented in April 2023.

The employer's pension costs paid to the TPS in the period amounted to £2,026,698 (2019: £1,540,780).

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.

Local Government Pension Scheme

The LGPS is a funded defined-benefit scheme, with the assets held in separate trustee-administered funds.

The total contributions are as noted below. The agreed contribution rates for future years are 12.4% to 27.1%

for employers and 2.75% to 12.5% for employees.

On 26 October 2018, the High Court handed down a judgment involving the Lloyds Banking Group’s defined

benefit pension schemes. The judgment concluded the schemes should be amended to equalise pension

benefits for men and women in relation to guaranteed minimum pension benefits, “GMP”. The Government

will need to consider this outcome in conjunction with the Government’s recent consultation on GMP

indexation in public sector schemes before concluding on any changes required to LGPS schemes.

Parliament has agreed, at the request of the Secretary of State for Education, to a guarantee that, in the

event of academy closure, outstanding Local Government Pension Scheme liabilities would be met by the

Department for Education. The guarantee came into force on 18 July 2013.

Total contributions made

2020

2019

£000

Employer's contributions

1,593

1,705

Employees' contributions

342

335

Total contributions

1,935

2,040

Principal actuarial assumptions

2020

2019

West Midlands

Rate of increase in salaries

3.26

3.65

Rate of increase for pensions in payment/inflation

2.26

2.15

Discount rate for scheme liabilities

1.60

3.65

Inflation assumption (CPI)

2.25

1.90

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-52-

Staffordshire

Rate of increase in salaries

2.65

2.70

Rate of increase for pensions in payment/inflation

2.25

2.30

Discount rate for scheme liabilities

1.70

1.90

Inflation assumption (CPI)

2.25

2.30

The current mortality assumptions include sufficient allowance for future improvements in mortality rates. The

assumed life expectations on retirement age 65 are:

2020

2019

Years

West Midlands

Retiring today

- Males

21.9

20.9

- Females

24.1

23.2

Retiring in 20 years

- Males

23.8

22.6

- Females

26.0

25.1

Staffordshire

Retiring today

- Males

21.2

21.1

- Females

23.6

23.5

Retiring in 20 years

- Males

22.1

22.2

- Females

25.0

24.8

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

2020

2019

West Midlands

£000

Discount rate + 0.1%

2,512

759

Discount rate - 0.1%

2,668

(777)

Mortality assumption + 1 year

2,691

(1,226)

Mortality assumption - 1 year

2,493

1,181

Staffordshire

Discount rate -0.5%

478

745

Salary increase rate +0.5%

237

Pension increase rate +0.5%

411

485

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-53-

The effect of the change on assets, liabilities, income and expense for the current period due to changes in CPI is

£2.2m

The academy trust's share of the assets in the scheme

2020

2019

Fair value

£000

Equities

9,596

8,003

Bonds

2,560

1,902

Cash

1,052

440

Property

1,259

1,063

Other assets

2,187

1,654

Total market value of assets

16,654

13,062

The actual return on scheme assets was £1,150,000 (2019: £737,000) excluding Staffordshire LGPS.

Amount recognised in the Statement of Financial Activities

2020

2019

£000

Current service cost

2,310

1,937

Past service cost

399

Interest income

(253)

(301)

Interest cost

700

799

Total operating charge

2,757

2,834

Pension and similar obligations

Changes in the present value of defined benefit obligations

2020

2019

£000

At 1 September 2019

37,115

34,965

Transferred out on existing academies leaving the academy trust

(5,111)

Current service cost

2,310

1,937

Interest cost

700

799

Employee contributions

3,662

335

Actuarial loss

3,440

4,058

Benefits paid

(29)

(267)

Past service cost

399

At 31 August 2020

47,198

37,115

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-54-

Changes in the fair value of the academy trust's share of scheme assets

2020

2019

£000

At 1 September 2019

13,062

12,837

Transferred out on existing academies leaving the academy trust

(2,285)

Interest income

261

301

Actuarial gain

1,593

436

Employer contributions

1,433

1,705

Employee contributions

342

335

Benefits paid

(29)

(267)

At 31 August 2020

16,662

13,062

Reconciliation of net expenditure to net cash flow from operating activities

2020

2019

£000

Net expenditure for the reporting period (as per the Statement of Financial

Activities)

(2,564)

(21,925)

Adjusted for:

Capital grants from DfE/ESFA and other capital income

(691)

(810)

Investment income receivable

(4)

(11)

Defined benefit pension costs less contributions payable

2,316

631

Defined benefit pension net finance cost

447

498

Depreciation of tangible fixed assets

725

716

Transfer of academy out of trust

21,749

(Increase)/decrease in debtors

1,731

(1,828)

(Decrease)/increase in creditors

831

(2,679)

Net cash (used in)/provided by operating activities

2,791

(3,659)

Commitments under operating leases

At 31 August 2020 the total of the academy trust's future minimum lease payments under non-cancellable

operating leases was:

2020

2019

£000

Amounts due within one year

Amounts due in two and five years

205

132

304

204

UNIVERSITY OF WOLVERHAMPTON MULTI ACADEMY TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2020

-55-

24 Related party transactions

Owing to the nature of the academy trust 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 the trustees

have an interest. All transactions involving such organisations are conducted in accordance with the

requirements of the AFH, including notifying the ESFA of all transactions made on or after 1 April 2019 and

obtaining their approval where required, and in accordance with the academy trust's financial regulations and

normal procurement procedures relating to connected and related party transactions. The following related

party transactions took place in the financial period.

The academy trust has a close relationship with the University of Wolverhampton (UOW) and the University

of Wolverhampton Social Enterprise (UOWSE). Certain costs incurred by the academy trust were recharged

from either UOW or UOWSE, as the purchasing power and economies of scale achievable by these

organisations provided the academy trust with best value. During the financial period, the academy trust was

recharged costs of £228,205 (2019: £424,232) from UOW and £53,960 (2019: £366,451) from UOWSE.

These costs were recharged to the academy trust at cost.

Where the academy trust made purchases from related parties these were at arm’s length.

In entering into these transactions, the academy trust has complied with the requirements of the Academies

Financial Handbook 2019.

25 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 or she is a member, or within one year after he or she ceases to be a member,

such amount as may be required, not exceeding £10 for the debts and liabilities contracted before he or she

ceases to be a member.

26 Agency arrangements

The academy trust distributed 16-19 bursary funds to students as an agent of the ESFA. In the accounting

period the trust received £23,302 (2019: £27,328) and disbursed £8,634 (2019: £20,234) from the fund.

Included within restricted reserves is an amount of £48,423 (2019: £33,755) at the end of the accounting

period which were funds still due to students.