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2020-08-31-accounts

Company registration number: 02819354 Charity registration number: 1024774

Sunninghill Preparatory School Limited

(A company limited by guarantee)

Annual Report and Financial Statements

for the Year Ended 31 August 2020

Sunninghill Preparatory School Limited

Contents

Reference and Administrative Details 1 to 2
Trustees' Report 3 to 12
Statement of Trustees' Responsibilities 13
Independent Auditors' Report 14 to 17
Consolidated Statement of Financial Activities 18
Consolidated Balance Sheet 19
Balance Sheet 20
Consolidated Statement of Cash Flows 21
Notes to the Financial Statements 22 to 44

Sunninghill Preparatory School Limited

Reference and Administrative Details

Chair Miss J R Walker Trustees Dr A Blunt, (appointed 12 March 2020) Mr A Boggis, (appointed 12 March 2020) Mr D Brugge Dr S J Dean, (resigned 31 December 2019) Mr I Jefferis Mr C Keenan Mrs R Lewis Mr D Perks Ms K Smith, (appointed 12 March 2020) Miss J R Walker Senior Management Team Mr John Thorpe, Headmaster Mrs Eileen Akerman, Bursar Mrs Nancy Sewed, Deputy Head Academic Mr Ian Stazicker, Deputy Head Pastoral Mrs Emma Sleightholme, Head of Junior Prep Mrs Sarah Smith, Head of Humanities, Designated Safeguarding Lead

Principal Office

South Court South Walks Dorchester Dorset DT1 1EB The charity is incorporated in England.

Page 1

Sunninghill Preparatory School Limited

Reference and Administrative Details

Company Registration Number 02819354

Charity Registration Number 1024774 Solicitors Humphries Kirk 40 High West Street Dorchester Dorset DT1 1UR Bankers Barclays Bank plc 10 South Street Dorchester Dorset DT1 1BT Auditor Milsted Langdon LLP Motivo House Bluebell Road Yeovil Somerset BA20 2FG

Page 2

Sunninghill Preparatory School Limited

Trustees' Report

Sunninghill Preparatory School Governors present their annual report for the year ended 31 August 2020 together with the audited accounts for the year and confirm that the accounts comply with current statutory requirements, the School's Articles of Association and the Charities Statement of Recommended Practice (SORP FRS102).

The School is established as a company limited by guarantee (company number 2819354), incorporated on 19 May 1993 and registered with the Charity Commission under Charity number 1024774 on 9 August 1993. The Governors, executive officers and principal addresses of the Charity are as listed on page 1. Particulars of the Charity's professional advisers are given on page 2.

Objectives and activities

Objects and aims

The Charity's objects are to promote and provide for the advancement of education of children between the ages of 2 years and 9 months and 13 years.

In setting objectives and planning the School's activities the Governors confirm they have given careful consideration to the Charity Commission's general guidance on public benefit and in particular to its supplementary public benefit guidance on advancing education and on fee-charging.

Within the objects, the School's aim is to provide a first class independent education whilst safeguarding and promoting the welfare of children, both through strong academic tuition and pastoral care, and through developing wider sporting, artistic and social skills in all its pupils.

This is intended to provide a safe and happy environment where pupils can develop at their own speed and fulfil their potential, thus helping to build self-confidence, self-motivation and develop important skills that will be valuable long after their Sunninghill careers have finished. We hope it will be an education for life.

We aim to encourage a spirit of respect and kindness, and to engender in every girl and boy a sense of responsibility for their own learning, happiness and the welfare of others.

It is our aim for pupils, staff and parents to work together as a team, to take ownership and to be proud of their School.

Our mission is to be a School where everyone feels valued and where all pupils are inspired to achieve to the best of their ability. Through our extended curriculum we aim to instil a passion for learning and striving for excellence, together with gaining an understanding of how to become responsible citizens actively helping each other. We set out to create a vibrant and ambitious School community with a family ethos.

Page 3

Sunninghill Preparatory School Limited

Trustees' Report

Objectives, strategies and activities

The financial year saw many new initiatives as set out below:

• Spiritual, moral, social and cultural aspects of learning will benefit from a new scheme of work in PSHCE. For Senior Pupils, that will include the addition of Relationship and Sex Education in their curriculum further to enhance understanding and respect for each other.

• Learning Support provision will move from a stand-alone service to the hub of the School. Opportunities for in-class support will be increased further to benefit pupil outcomes.

• Further to developing the School’s approach to giving pupils feedback to benefit each child’s ability to reflect on his or her own performance in all subjects. The intended outcome is to further improve academic achievement for all.

• Becoming more environmentally friendly. The School will do its utmost to reduce the annual cost of utility bills and look for renewable ways sustainably to source our energy requirement.

• Providing a dedicated office and Information & Communications Technology (ICT) provision for the Head of Junior Prep.

• Continuing to maintain the fabric of the building and the grounds in keeping with its listed status including repairs to the boundary wall.

• Continuing to increase income from non-academic related activities via the School’s trading subsidiary in particular providing facilities for weddings.

• To prepare the School’s Business Case and commence consultation with the teaching staff who are members of the Teachers’ Pension scheme on a possible withdrawal from the scheme at the end of the next academic year.

Page 4

Sunninghill Preparatory School Limited

Trustees' Report

Strategies to achieve the year’s objectives:

• The School will subscribe to an online learning platform called iLearning which is provided by IAPS. There is a full range of categories including compliance, leadership and wellbeing.

• The School purchased Mark Mate to improve giving pupils’ feedback. Mark Mate is a label printer with specialised software to help teachers to give pupils detailed, personalised feedback. Features include the ability to dictate feedback and print labels to stick on pieces of work using the embedded speech recognition. It also has a built-in assessment tracker.

In March 2020 the UK was affected by the COVID 19 pandemic and the Government put the Country into lockdown and closed Schools. Sunninghill remained open throughout this lockdown period to educate vulnerable children and those of critical workers. A second home ‘school’ was set-up providing live lessons (via Google Meet) and the introduction of a virtual learning platform (Seesaw). The School also provided a Holiday Club for vulnerable children and those of critical workers during the Easter and Summer holidays.

Plans that were in place for this academic year were mainly carried through before lockdown, although those that required contractors in School have been postponed until restrictions have been lifted.

Despite being unable to have a traditional Speech Day to say farewell to our Form 8 pupils, we were able to celebrate their achievements in a different way. A grand picnic on the lawn was held for parents and pupils and staff in accordance with the Government’s guidelines. This was well received by all, and the weather held up.

Page 5

Sunninghill Preparatory School Limited

Trustees' Report

Public benefit

The School’s aim is to continue to contribute to the local community in line with the Charity Commissions’ Public Benefit requirement.

We continue to support local schools and charities in a variety of ways by giving access to our facilities and by fundraising, including:

• Making bursary provision to assist pupils who would otherwise be unable to afford the School’s fees and to support current pupils whose parents are experiencing financial hardship.

• Sharing our facilities and staff expertise with other local schools in various activities.

• Making available the all-weather pitch to be used by Weymouth Veterans Hockey Club and Dorchester Rugby club.

• Raising funds throughout the year to support local and national charities (Jeans for Genes, Active, Royal British Legion, Children in Need).

• Making available the School hall to local clubs, charities (Julia's House, Dorset Beekeepers, Dorchester Lions), organisations (Dorchester Arts Centre) and churches at a reduced rate; and

• Making available the School’s minibuses to local schools each week for hire at a significantly reduced rate.

All income generated by making our facilities available to the community is invested into the education of current and future pupils of the School through the operation of the School’s trading subsidiary.

The School did not obtain services from a professional fund-raiser to carry out any fundraising activities.

Bursaries and Assisted places

• Our means tested Bursary policy is designed to enable children, from families who would otherwise not be able to afford the School’s fees, to access the education we offer. We also aim to help our current parents who find themselves experiencing financial hardship, where the child’s education would be at risk. As a result, this year we provided assistance to parents to the value of £46,650 (2019 -£35,377). The School has no endowment fund from which to draw funding for these awards.

• In addition, the School offers standardised discounts to members of the Armed Forces, members of staff and siblings of current pupils. Full details of these discounts are available on our website.

Details of all our awards and assistance is available on the School’s website.

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Page 6

Sunninghill Preparatory School Limited

Trustees' Report

Strategic Report

Financial review

In the six years ended 31st August 2020, total income has increased 2% from £1,934,063 in the year ended 31 August 2015 (2014/15) to £1,973,274 in the year ended 31st August 2020 (2019/20). Over the same period, total expenditure decreased by 3.7% from £1,890,959 (2014/15) to £1,821,513 (2019/20). Inflationary increases suggest that these percentages should have been greater but 2017/2018, 2018/2019 and 2019/2020 were the first years for many when there was only a single form entry in each academic year. As a result, pupil numbers reduced from 195 (2016/17) to 185 (2017/18), 165 (2018/19) and 152 (2019/20) thereby reducing total income and requiring cost reductions.

Seven years ago in 2012/13, the School had an excess of expenditure over income of £165,947. Changes were made in the following year and in the six years ended 31st August 2020 the School’s total income exceeded its total expenditure by £766,065, being less than 7% of total income during that period. This significant turnaround reflects the hard work, professionalism and focussed effort of all members of the School’s team together with the continued support of parents.

The School is committed to continue to make surpluses each year in order to secure its long term future and generate sufficient cash to meet its requirements over the next 5 to 10 years.

During the period from March 2020, the School applied for assistance under the Government’s Coronavirus Job Retention Scheme and received grants totalling £140,026 which helped the school significantly to make a surplus of £151,761 (2019 - £99,267).

The School’s classes are largely full and there are waiting lists for some years. As mentioned above, with effect from September 2017, the School has had only a single form in each academic year. This has enabled the School to focus on the provision of a high quality education to all pupils by a smaller team of dedicated professionals.

The School’s trading subsidiary hired out the School’s facilities for weddings during 2019/20 and has been able to pay a management charge to the School as well as make a donation all of which total £13,042. This donation is reduced from £31,245 in 2018/19 as a result of the COVID-19 pandemic and the reduction in letting of the school facilities.

This has helped the School to make capital expenditure of £13,751 during 2019/20 and continue to invest in the School’s infrastructure and technological teaching aids.

In order to improve the academic standards of the School, maintain its operating surplus and enable it to make capital expenditure, the School is committed to make savings wherever possible in operational expenditure. At the same time the School will continue to reward fairly its team of high quality professionals.

Making savings in operational expenditure has assumed greater significance since 1st September 2019 when the School’s contribution to the Teachers’ Pension Scheme increased by 7.2% from 16.48% to 23.68%. (See note 20 on page 39)

The School has regular management accounts produced on the accruals basis and prudent budgets are prepared. Financial control in the School is strong and Governors are considering ways of increasing the School's total income and making savings in operational expenditure.

Page 7

Sunninghill Preparatory School Limited

Trustees' Report

The School had cash of £662,519 on its balance sheet at 31 August 2020. However, this comprised of £165,590 for fees received in advance for 2019/20 and deposits received from parents of £93,750. Hence, the School had £403,179 of cash to meet existing liabilities due within 2020/21.

The School’s Net current assets increased from £142,665 at 31st August 2019 to £302,217 at 31st August 2020 which means that it should be able to pay all its debts as they fall due.

Policy on reserves

The School’s policy is to continue to make operational surpluses of income over expenditure in order to generate Net current assets of £330,000 by 31 August 2024, which equates to about two months’ of current annual total expenditure. In order to achieve this position, the School’s policy is to increase the School’s cash at bank to about £690,000 by that date. That level of cash at bank should provide the financial security necessary for the School to fulfil its principal activity – the promotion and provision of education of children between the ages of 2 years and 9 months and 13 years. Sunninghill Preparatory School Ltd is now the only independent preparatory school in the Dorchester and Weymouth area and it is important for the pupils and professional team that the School’s future is secure.

The School had bank loans of £427,556 at 31 August 2020 of which £288,856 was wholly repayable in five years. In order to meet this liability, the School must make annual surpluses of income over expenditure of about £64,750 on average for each of the next four years. This will enable the School to repay its bank borrowings and achieve its stated goal of creating Net Current Assets of £330,000. The School believes that this is entirely achievable.

A Charity’s free reserves are defined as the amount of reserves on the balance sheet after excluding fixed assets and any other asset not readily convertible to cash and restricted funds. As at 31 August 2020 the School’s reserves were £2,196,903 (2019 - £2,045,142), including restricted funds of £9,280 (2019 - £10,772), but the School’s fixed assets at that date amounted to £2,267,097 (2019 - £2,305,914) and so the School had a deficit of free reserves of £70,194. If the School’s policies with regard to annual surpluses of income over expenditure are achieved over the next five years, the School will attain its goal of having free reserves of over £200,000, which should amount to just over two years’ annual surplus.

The School aims to make annual capital expenditure broadly equal to the level of the annual depreciation charge, which is currently just over £50,000 per annum. This will maintain the School’s capital base.

In addition, the School plans to continue to refurbish the fabric of Sunninghill Preparatory School Ltd, a listed building and the former home of Alfred Pope. Surplus funds will be designated in future years for strategic projects which are important for the continued maintenance and improvement of the School.

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Sunninghill Preparatory School Limited

Trustees' Report

Plans for future periods

Aims and key objectives for future periods

The School is committed to the continuous improvement of Information and Communications Technology (ICT) facilities and opportunities for pupils. It aims for the following:

Prepare for inspection due in 2021/2022.

Plan for introduction of Design Technology into Junior Prep.

To improve communications for parents and pupils via a dedicated app ‘School Ping’.

To update the School’s website.

To investigate replacing the homework diary with an online platform such as Seesaw.

Structure, governance and management

Nature of governing document

The Charity (and its subsidiary undertaking) is governed by its Memorandum and Articles of Association dating from 1993 as amended in May 2013.

The Charity has a governing body for the School. The details of this are explained below, together with information on how members of each governing body are appointed to office.

Recruitment and appointment of trustees

The Charity's elected Governors are appointed at a Meeting of the Board by nomination by a Trustee or the Headmaster on the basis of competence, specialist skills and local availability. New Governors are inducted into the workings of the Charity and its subsidiary undertakings and the School, including Board Policy, and have the opportunity to attend external training sessions.

Page 9

Sunninghill Preparatory School Limited

Trustees' Report

Organisational structure

The Governors, as the trustees of the Charity and its subsidiary undertaking, are legally responsible for the overall management and control of the School, and meet at least six times a year. The work of implementing most of their policies is carried out by the members of Governance Committees; the Finance & Business Committee (covering Finance, Audit, Marketing and Staffing), the Education Committee (covering Education, ISI compliance, and safeguarding) and the Estates, Risk & Compliance Committee (covering Risk, Health & Safety, Property). The Headmaster and the Bursar attend meetings of the above Committees.

The day to day running of the School is delegated to the Headmaster and Senior Leadership Team which consists of the Headmaster (Mr John Thorpe), the Bursar (Mrs Eileen Akerman) the Deputy Heads (Mr Ian Stazicker and Mrs Nancy Sewed), Head of Junior Prep (Mrs Emma Sleightholme) and Designated Safeguarding Lead, and Marketing Co-ordinator, (Mrs Sarah Smith). The aggregate employee-benefits of these key leadership personnel is reported in the notes to the accounts.

The School actively supports the attainment of the highest standards in the Independent Schools sector, partly through networking with other schools and partly through peer group studies for the evaluation of quality and performance improvement methods. We also co-operate with many local charities in our ongoing endeavours to widen public access to the schooling we can provide, to optimise the use of our cultural and sporting facilities and to awaken in our pupils an awareness of the social context of the all-round education they receive at the school.

The remuneration of key leadership personnel is set by the Board of Governors, with the policy objectives of providing appropriate incentives to encourage enhanced performance and of rewarding them fairly and responsibly for their individual contributions to the Charity's success.

The appropriateness and relevance of the remuneration policy is reviewed annually, including reference to comparisons with other independent schools to ensure that, where relevant, the School remains sensitive to the broader issues of pay and employment conditions elsewhere.

Delivery of the School's charitable vision and purpose is primarily dependent on our key management personnel and staff costs are the largest single element of our charitable expenditure.

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Sunninghill Preparatory School Limited

Trustees' Report

Major risks and management of those risks

The Board of Governors is responsible for the management of the risks faced by the School. Detailed considerations of risk are delegated to the Finance and Business Committee, which is assisted by the Senior Leadership Team. Risks are identified, assessed and controls established throughout the year.

The School maintains a whole school risk register, which covers the main areas of risk to the School, and aims to offset those risks:

• to ensure that the School campus is maintained and that day to day operational controls are in place; and

The key controls used by the Charity and its subsidiary undertakings to mitigate the risks include:

Through the risk management processes established for the School, the Governors are satisfied that the major risks identified have been adequately mitigated where necessary. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

Financial instruments

Objectives and policies

The Group's activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the Group’s policies approved by the Board of Trustees, which provide written principles on the use of financial derivatives to manage these risks. The Group does not use derivative financial instruments for speculative purposes.

Cash flow risk

The Group’s activities expose it primarily to the financial risks of changes in interest rates. Interest bearing assets and liabilities are largely held at variable rates.

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Sunninghill Preparatory School Limited

Trustees' Report

Credit risk

The Group’s principal financial assets are bank balances and cash, trade and other receivables, and investments.

The Group’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows.

The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies. The Group has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.

Liquidity risk

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the Group uses a mixture of long-term and short-term debt finance.

Disclosure of information to auditor

Each trustee has taken steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information. The trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

The annual report was approved by the trustees of the charity on 24 May 2021 and signed on its behalf by:

......................................... Miss J R Walker Chair and Trustee

Page 12

Sunninghill Preparatory School Limited

Statement of Trustees' Responsibilities

The trustees (who are also the directors of Sunninghill Preparatory School Limited for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

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

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

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

Approved by the trustees of the charity on 24 May 2021 and signed on its behalf by:

......................................... Miss J R Walker Chair and Trustee

Page 13

Sunninghill Preparatory School Limited

Independent Auditor's Report to the Members of Sunninghill Preparatory School Limited

Opinion

We have audited the financial statements of Sunninghill Preparatory School Limited (the 'charitable parent company') and its subsidiaries (the 'group') for the year ended 31 August 2020, which comprise the Consolidated Statement of Financial Activities, Consolidated Balance Sheet, , Balance Sheet, Consolidated Statement of Cash Flows and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Page 14

Sunninghill Preparatory School Limited

Independent Auditor's Report to the Members of Sunninghill Preparatory School Limited

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

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the and the Trustees' Report.

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

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities (set out on page 13), the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity'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 the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Page 15

Sunninghill Preparatory School Limited

Independent Auditor's Report to the Members of Sunninghill Preparatory School Limited

Auditor’s responsibilities for the audit of the financial statements

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 an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted 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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Page 16

Sunninghill Preparatory School Limited

Independent Auditor's Report to the Members of Sunninghill Preparatory School Limited

Use of our report

This report is made solely to the charitable parent company's trustees, 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 group's trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable parent company and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.

...................................... Mr R Cadwallader (Senior Statutory Auditor) For and on behalf of Milsted Langdon LLP, Statutory Auditor Motivo House Bluebell Road Yeovil Somerset BA20 2FG

25 May 2021

Page 17

Sunninghill Preparatory School Limited

Consolidated Statement of Financial Activities for the Year Ended 31 August 2020 (Including Consolidated Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Charitable activities
3
Investment income
4
Other income
5
Total income
Expenditure on:
Raising funds
6
Charitable activities
7
Total expenditure
Net income/(expenditure)
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
21		 Unrestricted
funds
£
1,767,058
2,158
204,058
1,973,274
(6,435)
(1,813,586)
(1,820,021)
153,253
153,253
2,034,370
2,187,623		 Restricted
funds
£
-
-
-
-
-
(1,492)
(1,492)
(1,492)
(1,492)
10,772
9,280		 Total
2020
£
1,767,058
2,158
204,058
1,973,274
(6,435)
(1,815,078)
(1,821,513)
151,761
151,761
2,045,142
2,196,903		 Total
2019
£
1,952,655
2,415
75,035
2,030,105
(2,322)
(1,928,516)
(1,930,838)
99,267
99,267
1,945,875
2,045,142

All of the group's activities derive from continuing operations during the above two periods. The funds breakdown for 2019 is shown in note 21.

The notes on pages 22 to 44 form an integral part of these financial statements. Page 18

Sunninghill Preparatory School Limited

(Registration number: 02819354) Consolidated Balance Sheet as at 31 August 2020

Note
Fixed assets
Tangible assets
13
Current assets
Stocks
15
Debtors
16
Cash at bank and in hand
Creditors: Amounts falling due within one year
17
Net current assets
Total assets less current liabilities
Creditors: Amounts falling due after more than one year
18
Net assets
Funds of the group:
Restricted income funds
Restricted funds
21
Unrestricted income funds
Unrestricted funds
21
Total funds
21		 2020
£
2,267,097
1,850
80,198
662,519
744,567
(442,350)
302,217
2,569,314
(372,411)
2,196,903
9,280
2,187,623
2,196,903		 2019
£
2,305,914
1,450
70,959
489,508
561,917
(419,252)
142,665
2,448,579
(403,437)
2,045,142
10,772
2,034,370
2,045,142

The financial statements on pages 18 to 44 were approved by the trustees, and authorised for issue on 24 May 2021 and signed on their behalf by:

......................................... Mrs R Lewis Trustee

The notes on pages 22 to 44 form an integral part of these financial statements. Page 19

Sunninghill Preparatory School Limited

(Registration number: 02819354) Balance Sheet as at 31 August 2020

Note
Fixed assets
Tangible assets
13
Investments
14
Current assets
Stocks
15
Debtors
16
Cash at bank and in hand
Creditors: Amounts falling due within one year
17
Net current assets
Total assets less current liabilities
Creditors: Amounts falling due after more than one year
18
Net assets
Funds of the charity:
Restricted income funds
Restricted funds
Unrestricted income funds
Unrestricted funds
Total funds		 2020
£
2,267,097
100
2,267,197
1,850
82,557
636,387
720,794
(418,677)
302,117
2,569,314
(372,411)
2,196,903
9,280
2,187,623
2,196,903		 2019
£
2,305,914
100
2,306,014
1,450
69,937
470,595
541,982
(421,662)
120,320
2,426,334
(403,437)
2,022,897
10,772
2,012,125
2,022,897

The financial statements on pages 18 to 44 were approved by the trustees, and authorised for issue on 24 May 2021 and signed on their behalf by:

......................................... Mrs R Lewis Trustee

The notes on pages 22 to 44 form an integral part of these financial statements. Page 20

Sunninghill Preparatory School Limited

Consolidated Statement of Cash Flows for the Year Ended 31 August 2020

Note
Cash flows from operating activities
Net cash income
Adjustments to cash flows from non-cash items
Depreciation
13
Investment income
4
Working capital adjustments
Increase in stocks
15
Increase in debtors
16
Increase/(decrease) in creditors
17
Increase/(decrease) in deferred income
18
Net cash flows from operating activities
Cash flows from investing activities
Interest receivable and similar income
4
Purchase of tangible fixed assets
13
Net cash flows from investing activities
Cash flows from financing activities
Repayment of loans and borrowings
17
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at 1 September 2019
Cash and cash equivalents at 31 August 2020		 2020
£
151,761
52,568
(2,158)
202,171
(400)
(9,239)
12,693
9,645
214,870
2,158
(13,751)
(11,593)
(30,266)
173,011
489,508
662,519		 2019
£
99,267
54,009
(2,415)
150,861
-
(4,144)
(23,382)
(70,619)
52,716
2,415
(55,069)
(52,654)
(42,604)
(42,542)
532,050
489,508

All of the cash flows are derived from continuing operations during the above two periods.

The notes on pages 22 to 44 form an integral part of these financial statements. Page 21

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2020

1 Charity status

The charity is limited by guarantee, incorporated in England, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.

The address of its registered office is: South Court South Walks Dorchester Dorset DT1 1EB

These financial statements were authorised for issue by the trustees on 24 May 2021.

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared in accordance with 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) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.

Basis of preparation

Sunninghill Preparatory School Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the charity and its subsidiary undertakings drawn up to 31 August 2020.

No statement of financial activities is presented for the charity as permitted by section 408 of the Companies Act 2006. The charity made net income for the financial year of £174,006 (2019 - £77,022).

Page 22

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2020

A subsidiary is an entity controlled by the charity. Control is achieved where the charity has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the statement of financial activities from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

Inter-company transactions, balances and unrealised gains on transactions between the charity and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination. Total comprehensive income is attributed to non-controlling interests even if this results in the non-controlling interests having a deficit balance.

Going concern

Having reviewed the funding facilities available to the School together with the expected ongoing demand for places and future projected cash flows, the Governors have a reasonable expectation that the School has adequate resources to continue its activities for the foreseeable future. Accordingly, the accounts have been prepared on a going concern basis.

In light of the rapid global spread of the Coronavirus “COVID-19” in early 2020, the trustees have reviewed budgets and other financial information for the next twelve months. Following this review, the trustees consider there to be little impact on the Charity’s ability to act as a going concern.

Page 23

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2020

Judgements

In the application of the charitable company's accounting policies, which are described above, the Governors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources.

These estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

The Governors have not made any critical judgements in the process of applying the company's accounting policies that have significant effect on the amounts recognised in the financial statements. The following are areas that are considered to be key sources of estimation uncertainty:

The economic useful life of tangible fixed assets and the expected residual value on future disposal is estimated by the trustees based on their experience. The total carrying of fixed assets at 31 August 2020 is £2,267,097.

Income and endowments

Fees receivable are accounted for in the period to which they relate. Fees received in advance are included as deferred income and released to the Statement of Financial Activities in the financial year to which they relate. Donations are recognised on a receivable basis where the receipt is probable and the amount can be reliably measured.

Grants receivable

Grants are included in the Statement of Financial Acitivities 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 entitlement occurs before income is received, the income is accrued. Capital grants are recognised in full when there is an unconditional entitlement to the grant.

Deferred income

Deferred income represents amounts received for future periods and is released to incoming resources in the period for which it has been received. Such income is only deferred when:

-The donor specifies that the grant or donation must only be used in future accounting periods; or -The donor has imposed conditions which must be met before the charity has unconditional entitlement.

Investment income

Interest receivable and other income is accounted for on the accruals basis as far as it is prudent to do so.

Page 24

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2020

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable a settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Raising funds

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

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

Governance costs

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

Government grants

Government grants are recognised under the accrual model and are recognised as income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate.

Taxation

The charity 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 charity 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.

As a registered charity, the School benefits from rates relief and is generally exempt from income tax and capital gains tax, but not from VAT. Irrecoverable VAT is included in the cost of those items to which it relates.

Page 25

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2020

Tangible fixed assets

Individual fixed assets costing £500 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The Governors have considered the component parts of the School's freehold land and buildings. The Governors consider the expected useful life of the majority of the component parts to be no less than 50 years and consider the estimated residual value of those parts to be no less than the current carrying value in the accounts. Those component parts with a useful life of less than 50 years are depreciated over their useful life.

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class Depreciation method and rate Freehold land and buildings and improvements 50 years straight line Other improvements 20 years straight line Furniture and equipment 10 years straight line Computer equipment 3 years straight line Musical instruments 10 years straight line Motor vehicles 4 years straight line

Business combinations

Business combinations are accounted for under the purchase method. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by the group. All intra-group transactions, balances, income and expenses are eliminated on consolidation. In accordance with Section 35 of FRS 102, Section 19 of FRS 102 has not been applied in these financial statements in respect of business combinations effected prior to the date of transition.

Stock

Stock is valued at the lower of cost and estimated selling price less costs to complete and sell, after due regard for obsolete and slow moving stocks. Cost is determined using the first-in, first-out (FIFO) basis.

Trade debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.

Page 26

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2020

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Provisions

Provisions are recognised when the School 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.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

Page 27

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2020

Pensions and other post retirement obligations

The School contributes to the Teachers' Pension Scheme for its teaching staff at rates set by the Scheme Actuary. The scheme is a multi employer pension scheme and it is not possible to identify the assets and liabilities of the scheme which are attributable to the school. In accordance with FRS 102, the scheme is accounted for as a defined contribution scheme and the employer's contribution to the pension scheme is charged to the Statement of Financial Activities.

The School also operates a defined contribution group personal plan for staff who are not eligible for the Teachers' Pension Scheme. Employer's contributions to the pension scheme are charged to the Statement of Financial Activities.

Financial instruments

Classification

Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument.

Recognition and measurement

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of future receipts discounted at a market rate of interest.

Basic financial liabilities, including trade and other payables, are initially recognised at transaction price. Financial liabilities due in more than one year are initially measured at transaction price and subsequently measured at amortised cost using the effective interest method. Financial liabilities constituting financing transactions are initially measured at the present value of the future payments discounted at a market rate of interest.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

Investments

Investments in subsidiaries and associates are measured at cost less impairment. For investments in subsidiaries acquired for consideration including the issue of shares qualifying for merger relief, cost is measured by reference to the nominal value of the shares issued plus fair value of other consideration. Any premium is ignored.

Fair value measurement

The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique.

Page 28

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2020

3 Income from charitable activities

Tuition fees (incl. nursery and fledglings)
Extracurricular activities
Catering
Insurance commissions
Registration fees
Discounts allowable		 Unrestricted
funds
General
£
1,806,230
52,697
1,121
256
1,725
(94,971)
1,767,058		 Total
2020
£
1,806,230
52,697
1,121
256
1,725
(94,971)
1,767,058		 Total
2019
£
1,965,388
91,320
1,948
881
1,500
(108,382)
1,952,655

Amounts included above relating to restricted funds total £nil (2019: £nil).

The net income of tuition fees following discounts and bursaries for the year was £1,711,259 (2019: £1,857,006).

4 Investment income

Interest receivable and similar income;
Interest receivable on bank deposits		 Unrestricted
funds
General
£
2,158		 Total
2020
£
2,158		 Total
2019
£
2,415

Amounts included above relating to restricted funds total £nil (2019: £nil)

5 Other income

Hire of school buildings and grounds
Early years funding
Coronavirus grant income		 Unrestricted
funds
General
£
21,565
42,467
140,026
204,058		 Total
2020
£
21,565
42,467
140,026
204,058		 Total
2019
£
35,901
39,134
-
75,035

Amounts included above relating to restricted funds total £nil (2019: £nil)

Page 29

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2020

6 Expenditure on raising funds

a) Costs of trading activities

Note
Trading subsidiary costs
Allocated support costs
8
Direct costs
£
Costs of trading activities
5,348
7
Expenditure on charitable activities
Unrestricted
funds
Note
General
£
Teaching costs and
related expenditure
199,256
Running costs and
school
maintenance
216,855
Staff costs
1,175,337
Support and
Governance costs
8
222,138
1,813,586		 Unrestricted
funds
General
£
5,348
1,087
6,435
Allocated
support
costs
£
1,087
Restricted
funds
£
-
1,492
-
-
1,492		 Total
2020
£
5,348
1,087
6,435
Total
2020
£
6,435
Total
2020
£
199,256
218,347
1,175,337
222,138
1,815,078		 Total
2019
£
2,322
-
2,322
Total
2019
£
2,322
Total
2019
£
263,956
229,002
1,213,729
221,829
1,928,516

£1,813,586 (2019 - £1,927,024) of the above expenditure was attributable to unrestricted funds and £1,492 (2019 - £1,492) to restricted funds.

Page 30

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2020

8 Analysis of governance and support costs

Support costs allocated to raising funds

Support costs allocated to raising funds
Basis of
allocation
Management charges
U
Support costs allocated to charitable activities
Basis of
allocation
Governance
costs
£
Staff costs
U
-
Motor and travel costs
U
-
Postage stationery and
printing
U
-
Telephone
U
-
Advertising and marketing U
-
Legal and professional feesU
5,166
Audit and accountancy
fees
U
6,000
Bank charges
U
-
Loan interest
U
-
Sundry expenses
U
-
Bad debt provision
U
-
Ipad Lease
U
-
11,166		 Other
support
costs
£
1,087
Other
support
costs
£
Total
2020
£
116,533
116,533
32,670
32,670
10,174
10,174
4,158
4,158
11,225
11,225
-
5,166
14,364
20,364
2,040
2,040
9,935
9,935
2,996
2,996
1,483
1,483
5,394
5,394
210,972
222,138		 Total
2020
£
1,087
Total
2019
£
114,152
34,089
10,738
3,604
15,073
7,170
19,832
1,483
12,616
8,307
(8,750)
3,515
222,138 221,829

Basis of allocation

Reference Method of allocation U Unrestricted R Restricted

Page 31

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2020

9 Net incoming/outgoing resources

Net incoming resources for the year include:

Audit fees
Other non-audit services
Depreciation of fixed assets		 2020
£
8,100
4,200
52,568		 2019
£
8,100
4,188
54,009

10 Trustees remuneration and expenses

During the year the group made the following transactions with trustees:

£55 (2019: £Nil) of expenses were reimbursed during the year.

Expenses were reimbursed to one trustee in relation to a governors meeting.

No trustees, nor any persons connected with them, have received any remuneration from the group during the year.

11 Staff costs

The aggregate payroll costs were as follows:

Staff costs during the year were:
Wages and salaries
Social security costs
Pension costs		 2020
£
1,062,655
88,473
140,742
1,291,870		 2019
£
1,139,849
91,366
96,666
1,327,881

The monthly average number of persons (including senior management team) employed by the group during the year expressed as full time equivalents was as follows:

during the year expressed as full time equivalents was as follows:
Teachers
Admin and Support		 2020
No
33
25
58		 2019
No
32
26
58

The full time equivalent numbers of staff for the same period was Teachers 26 (2019: 28) and Administration and support 13 (2019: 12).

Page 32

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2020

The number of employees whose emoluments fell within the following bands was:

£60,001 - £70,000 2020
No
1		 2019
No
1

The total employee benefits of the key management personnel of the group were £355,821 (2019 - £350,354).

1 (2019 - 1) of the above employees participated in the Defined Benefit Pension Schemes.

12 Taxation

The group is a registered charity and is therefore exempt from taxation.

13 Tangible fixed assets

Group

Cost
At 1 September
2019
Additions
At 31 August
2020
Depreciation
At 1 September
2019
Charge for the
year
At 31 August
2020
Net book value
At 31 August
2020
At 31 August
2019		 Land and
buildings
£
2,460,463
4,065
2,464,528
276,839
18,543
295,382
2,169,146
2,183,624		 Furniture and
equipment
£
236,432
8,458
244,890
135,307
21,705
157,012
87,878
101,125		 Computer
equipment
£
70,329
-
70,329
50,452
12,058
62,510
7,819
19,877		 Musical
instruments
£
17,691
1,228
18,919
16,403
262
16,665
2,254
1,288		 Total
£
2,784,915
13,751
2,798,666
479,001
52,568
531,569
2,267,097
2,305,914

Page 33

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2020

Charity
Cost
At 1 September
2019
Additions
At 31 August
2020
Depreciation
At 1 September
2019
Charge for the
year
At 31 August
2020
Net book value
At 31 August
2020
At 31 August
2019		 Land and
buildings
£
2,460,463
4,065
2,464,528
276,839
18,543
295,382
2,169,146
2,183,624		 Furniture and
equipment
£
236,432
8,458
244,890
135,307
21,705
157,012
87,878
101,125		 Computer
equipment
£
70,329
-
70,329
50,452
12,058
62,510
7,819
19,877		 Musical
instruments
£
17,691
1,228
18,919
16,403
262
16,665
2,254
1,288		 Total
£
2,784,915
13,751
2,798,666
479,001
52,568
531,569
2,267,097
2,305,914

Page 34

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2020

14 Fixed asset investments

Charity

Shares in group undertakings and participating interests

Cost
At 1 September 2019
At 31 August 2020
Net book value
At 31 August 2020
At 31 August 2019		 Subsidiary
undertakings
£
100
100
100
100		 Total
£
100
100
100
100

Details of undertakings

Details of the investments in which the charity holds 20% or more of the nominal value of any class of share capital are as follows:

Country of Proportion of voting Principal
Undertaking incorporation Holding rights and shares held activity
2020
2019
Subsidiary undertakings
Sunninghill Enterprises
Limited		 UK Ordinary 100%
100%		 Hire
facilities		 of

Page 35

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2020

Subsidiaries

Sunninghill Enterprises Limited is a company incorporated in England, registraion number 09193650. Turnover for the year was £21,565 (2019: £35,901) and expenditure for the year was £17,523 (2019: £13,656). The profit for the financial period was £4,042 (2019: £22,245) and the aggregate of capital and reserves at the end of the period was £4,142 (2019: £22,345).

15 Stock

Group
2020
£
2019
£
Stocks
1,850
1,450
16 Debtors
Group
2020
£
2019
£
Trade debtors
20,340
3,702
Due from group undertakings
-
-
Prepayments
25,253
39,689
Accrued income
34,605
25,853
Other debtors
-
1,715
80,198
70,959
17 Creditors: amounts falling due within one year
Group
2020
£
2019
£
Bank loans
55,145
54,385
Trade creditors
11,966
10,538
Due to group undertakings
-
-
Other taxation and social
security
21,342
22,437
Other creditors
109,251
104,608
Accruals
58,394
50,677
Deferred income
186,252
176,607
442,350
419,252		 Charity
2020
£
2019
£
1,850
1,450
Charity
2020
£
2019
£
16,201
2,680
2,856
-
24,853
39,689
38,647
25,853
-
1,715
82,557
69,937
Charity
2020
£
2019
£
55,145
54,385
11,936
10,538
-
6,885
21,342
22,437
109,251
104,608
55,413
47,702
165,590
175,107
418,677
421,662		 Charity
2020
£
2019
£
1,850
1,450
Charity
2020
£
2019
£
16,201
2,680
2,856
-
24,853
39,689
38,647
25,853
-
1,715
82,557
69,937
Charity
2020
£
2019
£
55,145
54,385
11,936
10,538
-
6,885
21,342
22,437
109,251
104,608
55,413
47,702
165,590
175,107
418,677
421,662
421,662

Page 36

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2020

Creditors due within one year includes the following liabilities on which security has been given:

Group Charity
2020 2019 2020 2019
£ £ £ £
Bank loan 55,145 54,385 55,145 54,385

Legal charges are held over the School's freehold property as security against outstanding bank loans.

The loan financing is in the form of secured loans with a variable interest rate which have been treated as basic financial instruments measured at amortised cost.

Deferred income Group

Deferred income at 1 September 2019
Resources deferred in the period
Amounts released from previous periods
Deferred income at year end		 2020
£
176,607
186,252
(176,607)
186,252		 2019
£
247,226
176,607
(247,226)
176,607

Deferred income relates to fees received from parents in advance of the term to which they relate and to monies received in relation to events that haven't yet taken place due to COVID-19. All of the fees received in advance at 31 August 2020 are considered to be on normal terms for these types of transactions.

Charity

Deferred income at 1 September 2019
Resources deferred in the period
Amounts released from previous periods
Deferred income at year end		 2020
£
175,107
165,590
(175,107)
165,590		 2019
£
247,226
175,107
(247,226)
175,107

Deferred income relates solely to fees received from parents in advance of the term to which they relate. All of the fees received in advance at 31 August 2020 are considered to be on normal terms for these types of transactions.

Page 37

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2020

18 Creditors: amounts falling due after one year

18 Creditors: amounts falling due after one year
Group Charity
2020 2019 2020 2019
£ £ £ £
Bank loans 372,411 403,437 372,411 403,437
Creditors amounts falling due after more than one year includes the following liabilities on which
security has been given:
Group Charity
2020 2019 2020 2019
£ £ £ £
Bank loan 372,411 403,437 372,411 403,437

Legal charges are held over the School's freehold property as security against outstanding bank loans.

The loan financing is in the form of secured loans with a variable interest rate which have been treated as basic financial instruments measured at amortised cost.

Legal charges are held over the School's freehold property as security against the outstanding bank loans totalling £427,556 (2019: £457,822), representing 19.71% (2019: 21.0%) of the property carrying value at 31 August 2020.

The loan financing is in the form of secured loans with a variable interest rate which have been treated as basic financial instruments measured at amortised cost. The total expense on these loans in the year was £9,935 (2019: £12,616). The market risk facing the School is that it is widely expected that interest rates will rise. Refer to the risk management section of the Report of the Governors for information as to the policies that have been put in place to manage risk.

During the financial year ended 31 August 2019, the loans were re-constructed and payable over five years. The new loan taken out during the year is at a fixed interest rate for five years.

Group

Included in the creditors are the following amounts due after more than five years:

2020
£
After more than five years by instalments
138,700
Charity
Included in the creditors are the following amounts due after more than five years:
2020
£
After more than five years by instalments
138,700		 2019
£
168,966
2019
£
168,966

Page 38

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2020

19 Obligations under leases and hire purchase contracts

The total value of future minimum lease payments was as follows:

Within one year
In two to five years		 Group
2020
£
2019
£
68,337
68,337
-
68,337
68,337
136,674		 Charity
2020
£
2019
£
68,337
68,337
-
68,337
68,337
136,674		 Charity
2020
£
2019
£
68,337
68,337
-
68,337
68,337
136,674
136,674

20 Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £3,423 (2019 - £3,608).

Teachers' Pension Scheme

The School participates in the Teachers' Pension Scheme ("the TPS") for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £137,319 (2019: £93,058) and at the year end £15,257 (2019: £12,308) was accrued in respect of contributions to this scheme.

The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers’ Pensions Regulations 2010 (as amended) and The Teachers’ Pension Scheme Regulations 2014 (as amended). Members contribute on a “pay as you go” basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2016 and the Valuation Report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%.

The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied at 5 March 2019. However, the assumptions were considered and set by the Department for Education prior to the ruling in the ‘McCloud/Sargeant case’. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teachers’ Pensions.

Page 39

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2020

On 27 June 2019 the Supreme Court denied the government permission to appeal the Court of Appeal’s judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Court’s decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied. A consultation was launched by the government on 16 July 2020, and closed to responses on 11 October 2020.

The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal’s ruling in the McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020 and the government is preparing to complete the cost control element of the 2016 valuations, which is expected to be completed in 2021.

In view of the above rulings and decisions the assumptions used in the 31 March 2016 Actuarial Valuation may become inappropriate. In this scenario, a valuation prepared in accordance with revised benefits and suitably revised assumptions would yield different results than those contained in the Actuarial Valuation.

Until the consultation and the cost cap mechanism review are completed it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly no provision for any additional past benefit pension costs is included in these financial statements.

Page 40

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2020

21 Funds

Group

Group
Unrestricted funds
General
Unrestricted income funds
Designated
Designated swimming pool
fund
Total unrestricted funds
Restricted funds
Woodland Play area fund
Cyber Coach equipment fund
Total restricted funds
Total funds
Unrestricted funds
General
Unrestricted income funds
Designated
Designated swimming pool
fund
Total unrestricted funds
Restricted funds
Woodland Play area fund
Cyber Coach equipment fund
Total restricted funds
Total funds		 Balance at 1
September
2019
£
2,033,384
986
2,034,370
3,833
6,939
10,772
2,045,142
Balance at 1
September
2018
£
1,928,109
5,502
1,933,611
4,333
7,931
12,264
1,945,875		 Incoming
resources
£
1,973,274
-
1,973,274
-
-
-
1,973,274
Incoming
resources
£
2,030,105
-
2,030,105
-
-
-
2,030,105		 Resources
expended
£
(1,819,035)
(986)
(1,820,021)
(500)
(992)
(1,492)
(1,821,513)
Resources
expended
£
(1,924,830)
(4,516)
(1,929,346)
(500)
(992)
(1,492)
(1,930,838)		 Balance at 31
August 2020
£
2,187,623
-
2,187,623
3,333
5,947
9,280
2,196,903
Balance at 31
August 2019
£
2,033,384
986
2,034,370
3,833
6,939
10,772
2,045,142

Page 41

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2020

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

During the year ended 31 August 2017 the Governors agreed to earmark funds of £35,000 to cover the anticipated cost of repair work required to the school swimming pool. Expenses incurred in this year have been deducted from this fund balance as work is carried out.

The Woodland Play Area fund represents a donation from the School's PTFA of £5,000 which was put towards the cost of a new low ropes course during 2016/17 and is being written off over the expected useful life of the asset.

During the year ended 31 August 2016 the School received a grant from The National Lottery towards the purchase of a Cyber Coach dance equipment (£9,915) and this is being written off over the expected useful life of the asset.

Page 42

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2020

22 Analysis of net assets between funds

Group

Group
Tangible fixed assets
Current assets
Current liabilities
Creditors over 1 year
Total net assets
Tangible fixed assets
Current assets
Current liabilities
Creditors over 1 year
Total net assets		 Unrestricted
funds
General
£
2,257,817
747,423
(445,206)
(372,411)
2,187,623
Unrestricted
funds
General
£
2,295,142
561,917
(419,252)
(403,437)
2,034,370		 Restricted
funds
£
9,280
-
-
-
9,280
Restricted
funds
£
10,772
-
-
-
10,772		 Total funds
at 31 August
2020
£
2,267,097
747,423
(445,206)
(372,411)
2,196,903
Total funds
at 31 August
2019
£
2,305,914
561,917
(419,252)
(403,437)
2,045,142

23 Analysis of net funds

Group

Cash at bank and in hand
Net debt
Cash at bank and in hand
Net debt		 At 1
September
2019
£
489,508
489,508
At 1
September
2018
£
532,050
532,050		 Financing
cash flows
£
173,011
173,011
Financing
cash flows
£
(42,542)
(42,542)		 At 31 August
2020
£
662,519
662,519
At 31 August
2019
£
489,508
489,508

Page 43

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2020

24 Related party transactions

Charity

During the year the charity made the following related party transactions:

Sunninghill Enterprises Ltd

Children of staff and Governors may attend the school. In such cases Governors pay the normal fees applicable but staff members receive a discount.

Neither the Governors nor persons connected with them received any remuneration or other benefits from the School in the year (2019: £Nil). During the year, legal advice fees of £1,395 (2019: £7,170), including VAT, were paid to a firm of solicitors of which one Governor is a partner.

The School owns 100% of the £100 ordinary share capital of Sunninghill Enterprises Limited.

The trading subsidiary is due to donate profits of £4,042 (2019: £22,245) to the school within nine months of the financial year end. In addition, management charges of £9,000 (2019: £9,000) in respect of the year ended 31 August 2020 are receivable from the trading subsidiary. At the balance sheet date the amount due from Sunninghill Enterprises Ltd was £2,856 (2019 - £6,885 due to).

Page 44