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DIOCESE OF CHICHESTER ACADEMY TRUST TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2019
Investment policy
The Board is committed to ensuring that all funds under its control are administered in a way that promotes best practice, good stewardship and minimises risk. At present its funds are more limited, although cash flow variations mean that it may be temporarily holding balances that are subject to transfer either to the academies within the Trust, for specific capital projects, or pending decisions on future conversions. Consequently, the Trust does not currently consider the investment of surplus funds as a primary activity. However, as the Trust grows, it does expect to maintain larger balances and has therefore contracted a Wealth Manager to provide investment advice to the directors in line with the administration objectives outlined above.
Principal risks and uncertainties
The trustees have assessed the major risks to which the Trust is exposed, in particular those related to the operations and finances of the Trust and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks. The Audit and Resources Committee, which met three times during the year, reviewed the Risk Register at each meeting and made recommendations for changes.
A risk register has been established which identifies risks to the Trust and actions to mitigate the risks. The Audit and Resources Committee has terms of reference which include reviewing the risk register at least three times per year and making recommendations as necessary to the board on changes that may be required. In addition, the Board itself will conduct an annual review of the risk register.
The Trustees consider the principal risks facing the Trust to be:
• Reputational - failure to ensure that each school acts in accordance with the Trust's policies and meets its obligations with respect to safeguarding.
• Governance - failure to recruit suitable Trustees and members of local governing bodies.
• Financial - impact of future changes to the funding formula for education.
Financial and risk management objectives and policies
The Trust manages its cash resources, including sufficient working capital, so that all its operating needs are met without the need for short-term borrowing.
Fundraising
The Trust does not use any external fundraisers, or engage in direct fundraising activities.
Plans for future periods
The Trust is cautiously pursuing opportunities to expand in line with its seven-year growth strategy, including attracting good and outstanding schools, both primary and secondary, which it plans to achieve initial growth within the next two years. Achieving the admission of additional schools is vital to securing financial stability and health for the Trust for future years and ensuring resources continue to be available to support school improvement provision across the wider Trust.
Funds held as custodian trustee on behalf of others
The Trust does not act as a custodian trustee and hold funds on behalf of others.
Employee consultation and disabled employees
It is the Trust's policy to ensure equality of opportunity for all staff, students, and other stakeholders. There is an Equal Opportunity policy and the Trust is a Disability Certified employer.
As part of the Trust's employment policies, employees are made aware of procedures and developments in consultation processes that are available to them. The Trust is conducting a stakeholder voice during 2019-20 which includes all staff members.
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