El proceso de la investigación: estudio de caso EFMN UVa
E. Definición de las preguntas informativas: estas preguntas buscan la
8.6.1 Sponsor contributions were a key part of the academies programme prior to the Academies Act 2010. An initial feature of the programme was the requirement for sponsors to make a capital contribution (10% but capped to £2m) for the school building. This was then replaced by an endowment model whereby the sponsor created an endowment fund, from which the investment return provided additional income for the academy trust. From 2012 the requirement for academies to obtain endowment sponsorship ceased, although contributions may still be received by local arrangement. Academies may also receive general charitable donations.
8.6.2 General donations in cash
8.6.3 Cash donations given by supporters and the public would be treated as income from donations in the SOFA and either recognised in the unrestricted fund (if received for use at the discretion of the trust), in the restricted fixed asset fund (if received for capital purposes with a requirement for on-going use of the asset) or otherwise in the restricted general fund. There is a different treatment for cash donations into an endowment fund, which is discussed later in this section.
8.6.4 Donations in kind
8.6.5 From time to time an academy trust may receive donations in kind. In accordance with part 7.3.7 donations of fixed assets should be measured at fair value.
Donations of sponsors’ services are expected to be reasonably quantifiable and must be included as income with a matching amount of notional expenditure.
advisors.
8.7.2 Freehold held by the academy trust
8.7.3 Some academy trusts own the freehold of their premises. This generally, but not only, applies to the first academies that opened.
New freehold premises constructed with capital grant paid direct to the academy trust - When the academies programme was first established the majority of academies were directly funded by DfE (or its predecessor
department) for the construction and/or refurbishment of their buildings. Such buildings are recognised as freehold tangible fixed assets within academy trust’s accounts (provided the academy trust also holds the freehold to the land) and depreciated over their expected useful life. The capital grant received from DfE is recognised as income within the restricted fixed asset fund and the fund is reduced over the life of the asset on a basis consistent with the depreciation policy.
During the period that the buildings are still under construction they are accounted for as tangible fixed assets at cost within the academy trust’s accounts but are not depreciated until they are available for use. During this construction phase the fixed asset cost should comprise only those costs that are directly attributable to bringing the asset into working condition for its intended use.
Existing freehold premises transferred from a predecessor organisation Where freehold title of buildings being used has been acquired by the
academy trust, the right to use the building should be accounted for in accordance with section 17 of FRS 102, or module 6 of the SORP 2015 depending on whether any consideration was payable.
The buildings would be recognised in the academy trust’s accounts at their fair value (being the value the trustees would expect to pay in the open market for an equivalent item) as freehold tangible fixed assets with a corresponding amount of ‘income from donations’ being recognised in the restricted fixed asset fund.
8.7.4 Long term leasehold, or other arrangements for the occupation of land by the academy trust
the freehold is owned by the local authority, generally occupy the predecessor school’s site under a lease from the local authority, normally for 125 years at nil rental. In some cases the academy will occupy a brand new building constructed by, and leased from, the local authority. Some academies may lease their premises from other organisations.
In accordance with module 6 of the SORP the asset should, in these cases, be recognised in the academy trust’s accounts, representing the ‘right to use’ the property. The fair value of the asset (being the right to use the property rather than the freehold) should be recognised as a leasehold tangible fixed asset with a corresponding amount of ‘income from donations’ recognised within the restricted fixed asset fund. The amount recognised in fixed assets would then be depreciated over the useful economic life of the asset with depreciation being charged against the amount included in restricted fixed asset funds. Premises occupied under a licence by church academies – Academies
that convert from a former voluntary (church) school, and continue to occupy the site occupied by the predecessor school, often have different occupancy arrangements to other former maintained schools. This is because the freehold will generally be owned by a diocese or other religious body, or by independent trustees. Where this arises there will usually be a mere licence to occupy which permits the academy to occupy the property in its new legal form, normally with no rental payable. A licence in this context means a special permission to do something on, or with, somebody else’s property which, if not for the licence, could be legally prevented or give rise to legal action. Such an arrangement is usually evidenced in a supplemental
agreement between the academy trust, the church and the Secretary of State, but each trust will need to look at the specific arrangements in place.
The key issue that the academy trust must consider in such cases is whether it should recognise an asset on its balance sheet, reflecting the value of its continuing use of the property. The following points should be addressed: Substance over form - FRS 102 identifies ‘substance over form’ as one of the qualitative characteristics of the information in financial statements. This means that transactions and other events and conditions should be accounted for and presented in financial statements in accordance with their substance and not merely their legal form. In determining whether to recognise an asset arising from the occupancy of its premises, the trust should consider whether the substance of
Definition of an asset - FRS 102 defines an asset as ‘a resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow’.
Control means the ability to obtain economic benefits and restrict the access of others. An asset is recognised where the flow of economic benefits is probable.
The future economic benefit in the instance of church academies is the continuing ability of the academy trust to operate the academy from the property as a going concern without incurring an expense for the use of that property.
The past event in these circumstances is the historic occupation of the property, and its continued occupancy at the point of academy conversion. In this case the asset that an academy trust would be recognising is not the legal title to the property but the future economic benefits that are expected to flow from the use of the property.
Continuing occupancy - To determine the nature of the asset being recognised the period over which the benefits will flow to the academy trust must be assessed. This should consider the circumstances existing at the year end and the probable course of subsequent events, reflecting the trust’s understanding of the owner’s intentions to continue to make the property available. The ability of the church to give two years notice to terminate the licence does not necessarily make
termination probable; it is merely a provision available to the owner of the property.
Taking all considerations into account it is likely that most church academies will conclude that the asset should be recognised on their balance sheet.
Academy trusts should also consider how recognition of the asset, to reflect the occupancy arrangements in place, would support their ability to conclude that they are a going concern.
Where the asset is recognised a corresponding amount of ‘income from donations’ will be recognised within the restricted fixed asset fund.
In addition academy trusts should ensure that the financial statements include sufficiently detailed disclosures in respect of such transactions to enable the user of the accounts to understand their commercial effect. An accounting policy would be required to explain the accounting treatment and the assumptions involved in
occupancy agreement it will need to determine an appropriate fair value for the asset. Whilst there is no absolute requirement for a professional valuation, the trustees need to determine a reasonable and reliable estimate of the current value with supporting assumptions, and they may feel that they can only do this by obtaining an independent valuation. The trustees could therefore instruct a chartered surveyor or obtain assistance from the relevant local authority. Insurance valuations are unlikely to be appropriate if they represent simply the rebuilding cost of the asset rather than its fair value.
8.7.7 The notes to the accounts should disclose the nature of the arrangements and their impact on the financial statements, and the accounting policy note should explain how the asset has been recognised including the basis of valuation. 8.7.8 The value of the asset, being the right to use the property in accordance with the
contractual terms, should be depreciated in accordance with the academy trust’s depreciation policy reflecting its useful economic life.
8.7.9 Short term lease held by the academy trust
8.7.10 Where an academy trust is leasing an existing school building on a short-term basis, again the nature of the leasing arrangement should be reviewed to
determine the appropriate treatment in accordance with section 20 of FRS 102 or module 6 of the SORP depending on the value of rental payable. It is likely that the arrangement will be an operating lease, and therefore the asset should not be capitalised. Disclosure should be given in the notes to the financial statements to explain the accounting arrangements for the assets.
8.7.11 If the assets are occupied under an operating lease any rental cost will simply be accounted for as expenditure. In the event that no rent, or below-market rent, is charged the academy trust needs to determine the market value of the rent, which should be recognised as an expense in the SOFA with a corresponding gain in income from donations.