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2021-08-31-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 2021

Sunninghill Preparatory School Limited

Contents

Reference and Administrative Details 1 to 2
Trustees' Report 3 to 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 46

Sunninghill Preparatory School Limited

Reference and Administrative Details

Chair

Miss J R Walker

Trustees

Dr A Blunt Mr A Boggis Mr D Brugge Mrs A Chittenden, (appointed 1 April 2021) Mrs S Downey, (appointed 1 September 2021) Mr I Jefferis, (resigned 31 August 2021) Mr C Keenan Mrs R Lewis, (resigned 31 August 2021) Mr D Perks Ms K Smith, (resigned 31 October 2021) Mr B Wadey, (appointed 17 June 2021)

Miss J R Walker

Senior Management / Leadership Team

Mr John Thorpe, Headmaster, (resigned 23 August 2021, following a period of ill health from 22 February 2021)

Mrs Nancy Sewed, Acting Head from 22 February 2021

Mrs Eileen Akerman, Bursar

Mrs Nancy Sewed, Deputy Head Academic until 31 August 2021 Mrs Lecca Moss, Acting Deputy Head Academic from 1 September 2021

Mr Ian Stazicker, Deputy Head Pastoral

Mrs Emma Sleightholme, Head of Junior Prep

Mrs Sarah Smith, Head of Humanities, Designated Safeguarding Lead

Charity Registration Number 1024774

Company Registration Number 02819354

The charity is incorporated in England.

Page 1

Sunninghill Preparatory School Limited

Reference and Administrative Details

Registered Office South Court South Walks Dorchester Dorset DT1 1EB Auditor Milsted Langdon LLP Motivo House Bluebell Road Yeovil Somerset BA20 2FG Solicitors Humphries Kirk 40 High West Street Dorchester Dorset DT1 1UR Bankers Barclays Bank plc 10 South Street Dorchester Dorset DT1 1BT

Page 2

Sunninghill Preparatory School Limited

Trustees' Report

Sunninghill Preparatory School Governors present their annual report for the year ended 31 August 2021 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:

• Enhancing the Personal, Social, Health and Economic (PSHE) education provision in the School which needed updating and expanding e.g. to develop RSE provision.

• Becoming more environmentally friendly. The School is doing its utmost to:

a) reduce the annual cost of utility bills and look for renewable ways sustainably to source our energy requirement.

b) improve facilities to encourage more children and staff to cycle to work.

• Regenerating income from non-academic related activities via the School’s trading subsidiary (in particular providing facilities for weddings and other community-based activities) following a period of reduced opportunity for such activities to be held during the Covid pandemic.

• Concluding the consultation with the members of the Teachers’ Pensions Scheme and withdrawing from the Scheme at 31 August 2021.

Page 4

Sunninghill Preparatory School Limited

Trustees' Report

Strategies to achieve the year’s objectives:

• The School enhanced the PSHE provision by:

a) Recruiting a specialist teacher for Forms 5-8.

b) Purchasing new PSHE and Religious Education schemes of work.

c) Adding PSHE to the formal reporting provision for Forms 5 - 8.

• Consulting fully with all teachers contributing to the Teachers’ Pension Scheme supported by professional advisors.

• The Covid pandemic continued to have an impact with the Government putting the Country into further lockdowns. Home schooling continued using the visual learning platform (Seesaw). The Holiday Clubs continued during the Easter and Summer holidays, but other projects and plans (such as marketing activities and Open Days) were impacted and postponed .

• In July 2021 we returned to our traditional Speech Day and end of year activities with added Covid precautions.

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, Dorchester Rugby club and Dorchester Youth Football Club.

• Making available the School hall to local clubs, charities (Catholic Women’s League, Space Youth Group, Repair Café, Dorset Beekeepers, Dorchester Lions), organisations (Dorchester Arts Centre) and churches (Indian Orthodox) at a reduced rate.

• The School’s pupils raised funds throughout the year to support local and national charities: Great Ormond Street Hospital, Jeans for Genes, Royal British Legion, Children in Need, Julia’s House, Mosaic, Portland Foodbank, Wear Red Day.

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.

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 £88,776 (2020 - £30,156). 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.

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

During the year ended 31 August 2021, the School’s long-standing Head became seriously ill and was unable to work at all from 22 February 2021. The Head resigned on ill-health grounds on 23 August 2021 and gave the required period of two terms’ notice.

All costs directly attributable to this exceptional matter, including those for the notice period, have been included in the School’s accounts for the year ended 31 August 2021 and total £110,599. Although the School’s total expenditure was £87,230 more than its total income for the year ended 31 August 2021, if costs of the exceptional matter are excluded, the School would have made a surplus of total income over expenditure of £23,369. If so, total costs for the year would be deemed to be £1,849,215 instead of £1,959,814 as disclosed in the School’s financial statements.

During the year, once again, the School applied for assistance under the Government’s Coronavirus Job Retention Scheme and received grants totalling £15,332 (2020: £140,026). In addition, the School took on a loan of £50,000 under the Government’s Coronavirus Bounce Back Loan Scheme.

The School’s trading subsidiary hired out the School’s facilities for weddings during 2020/21 and has been able to pay a management charge to the School as well as make a donation, all of which total £37,352 (2020: £13,042).

This has helped the School to make capital expenditure of £34,004 during 2020/21 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 assumed greater significance after 1st September 2019 when the School’s contribution to the Teachers’ Pension Scheme increased by 7.2% from 16.48% to 23.68% as referred to in Note 19 on page 41. As a result, the Trustees consulted with the members of the Teachers’ Pensions Scheme and agreed that the School would withdraw from the Scheme on 31 August 2021.

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.

The School had cash of £637,578 on its balance sheet at 31 August 2021. However, this included £147,273 for fees received in advance for 2021/22 and deposits received from parents of £97,750. Hence, the School had £392,555 of cash to meet existing liabilities due within 2021/22.

The School’s Net current assets decreased from £302,217 on 31st August 2020 to £244,194 at 31st August 2021. Even so, the School should continue to be able to pay all its debts as they fall due.

Page 7

Sunninghill Preparatory School Limited

Trustees' Report

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 2027, 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 by a similar amount. 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 Prep School is 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 £450,263 at 31 August 2021 of which £291,294 was wholly repayable in five years. In order to meet this liability, the School must make annual surpluses of income over expenditure of about £65,500 on average for each of the next five 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 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. As at 31 August 2021 the School’s reserves were £2,109,673, including restricted funds, but the School’s fixed assets at that date amounted to £2,249,203 and so the School had a deficit of free reserves of £139,530. If the School’s policies with regard to annual surpluses of income over expenditure are achieved over the next five years, the School will come close to its goal of having free reserves of over £200,000, which would amount to just over three 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 Prep School, 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.

Page 8

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 ICT facilities and opportunities for pupils, and aims to continue:

a) To upgrade interactive white boards throughout the School.

b) The rolling replacement programme for personal computers in the ICT suite.

• To introduce a new school wide writing scheme to raise attainment. Post-Covid ‘light touch’ bench line testing raised some concerns about writing progress for some children. As a result, a whole school INSET training day will be set aside to focus on this key area.

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 Acting Head (Mrs Nancy Sewed), the Bursar (Mrs Eileen Akerman) the Deputy Heads (Mr Ian Stazicker and Mrs Lecca Moss), Head of Junior Prep (Mrs Emma Sleightholme) and Designated Safeguarding Lead (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.

Page 10

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.

Page 11

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 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.

Page 12

Sunninghill Preparatory School Limited

Trustees' Report

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.

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 13 May 2022 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 subsidiary (the 'group') for the year ended 31 August 2021, 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 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

In auditing the financial statements, we have concluded that the trustees use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

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 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 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity’s operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

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

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

25 May 2022

Page 17

Sunninghill Preparatory School Limited

Consolidated Statement of Financial Activities for the Year Ended 31 August 2021 (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 (expenditure)/income
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
20		 Unrestricted
funds
£
1,765,310
41
107,233
1,872,584
(10,526)
(1,947,796)
(1,958,322)
(85,738)
(85,738)
2,187,623
2,101,885		 Restricted
funds
£
-
-
-
-
-
(1,492)
(1,492)
(1,492)
(1,492)
9,280
7,788		 Total
2021
£
1,765,310
41
107,233
1,872,584
(10,526)
(1,949,288)
(1,959,814)
(87,230)
(87,230)
2,196,903
2,109,673		 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

All of the group's activities derive from continuing operations during the above two periods. The funds breakdown for 2020 is shown in note 20.

The notes on pages 22 to 46 form an integral part of these financial statements. Page 18

Sunninghill Preparatory School Limited

(Registration number: 02819354) Consolidated Balance Sheet as at 31 August 2021

Note
Fixed assets
Tangible assets
12
Current assets
Stocks
14
Debtors
15
Cash at bank and in hand
Creditors: Amounts falling due within one year
16
Net current assets
Total assets less current liabilities
Creditors: Amounts falling due after more than one year
17
Net assets
Funds of the group:
Restricted income funds
Restricted funds
20
Unrestricted income funds
Unrestricted funds
20
Total funds
20		 2021
£
2,249,203
2,000
78,769
637,578
718,347
(474,153)
244,194
2,493,397
(383,724)
2,109,673
7,788
2,101,885
2,109,673		 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

The financial statements on pages 18 to 46 were approved by the trustees, and authorised for issue on 13 May 2022 and signed on their behalf by:

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

Miss J R Walker Trustee

The notes on pages 22 to 46 form an integral part of these financial statements. Page 19

Sunninghill Preparatory School Limited

(Registration number: 02819354) Balance Sheet as at 31 August 2021

Note
Fixed assets
Tangible assets
12
Investments
13
Current assets
Stocks
14
Debtors
15
Cash at bank and in hand
Creditors: Amounts falling due within one year
16
Net current assets
Total assets less current liabilities
Creditors: Amounts falling due after more than one year
17
Net assets
Funds of the charity:
Restricted income funds
Restricted funds
Unrestricted income funds
Unrestricted funds
Total funds		 2021
£
2,249,203
100
2,249,303
2,000
109,508
599,933
711,441
(467,347)
244,094
2,493,397
(383,724)
2,109,673
7,788
2,101,885
2,109,673		 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

The financial statements on pages 18 to 46 were approved by the trustees, and authorised for issue on 13 May 2022 and signed on their behalf by:

......................................... Miss J R Walker Trustee

The notes on pages 22 to 46 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 2021

Note
Cash flows from operating activities
Net cash (expenditure)/income
Adjustments to cash flows from non-cash items
Depreciation
12
Investment income
4
Working capital adjustments
Increase in stocks
14
Decrease/(increase) in debtors
15
Increase in creditors
16
(Decrease)/increase in deferred income
17
Net cash flows from operating activities
Cash flows from investing activities
Interest receivable and similar income
4
Purchase of tangible fixed assets
12
Net cash flows from investing activities
Cash flows from financing activities
Value of new loans obtained during the period
Repayment of loans and borrowings
16
Net cash flows from financing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at 1 September 2020
Cash and cash equivalents at 31 August 2021		 2021
£
(87,230)
51,898
(41)
(35,373)
(150)
1,429
59,388
(38,979)
(13,685)
41
(34,004)
(33,963)
50,000
(27,293)
22,707
(24,941)
662,519
637,578		 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)
(30,266)
173,011
489,508
662,519

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

The notes on pages 22 to 46 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 2021

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 13 May 2022.

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 2021.

No statement of financial activities is presented for the charity as permitted by section 408 of the Companies Act 2006. The charity made a net loss for the financial year of £115,582 (2020 - profit of £147,719).

Page 22

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

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 ongoing spread of the Coronavirus “COVID-19” , 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 2021

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 lives of tangible fixed assets and their expected residual values on future disposal is estimated by the trustees based on their experience. The total carrying value of fixed assets at 31 August 2021 is £2,249,203.

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 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 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 2021

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 2021

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 Land is not depreciated, buildings are Freehold land and buildings and improvements depreciated over 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.

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 2021

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 2021

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 2021

3 Income from charitable activities

Tuition fees (incl. nursery and fledglings)
Extracurricular activities
Catering
Insurance commissions
Registration fees
Bursaries
Sibling, staff and forces discount
Homeschooling and key workers discount		 Unrestricted
funds
General
£
1,897,525
51,558
342
-
3,250
(88,776)
(80,295)
(18,294)
1,765,310		 Total
2021
£
1,897,525
51,558
342
-
3,250
(88,776)
(80,295)
(18,294)
1,765,310		 Total
2020
£
1,912,438
52,697
1,121
256
1,725
(30,156)
(64,815)
(106,208)
1,767,058

Amounts included above relating to restricted funds total £Nil (2020: £Nil)

The net income of tuition fees following discounts and bursaries for the year was £1,710,160 (2020: £1,711,259).

4 Investment income

Interest receivable and similar income;
Interest receivable on bank deposits		 Unrestricted
funds
General
£
41		 Total
2021
£
41		 Total
2020
£
2,158

Amounts included above relating to restricted funds total £Nil (2020: £Nil).

Page 29

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

5 Other income

Hire of school buildings and grounds
Early years funding
Coronavirus grant income
Other government grant income		 Unrestricted
funds
General
£
49,880
40,979
15,332
1,042
107,233		 Total
2021
£
49,880
40,979
15,332
1,042
107,233		 Total
2020
£
21,565
42,467
140,026
-
204,058

Amounts included above relating to restricted funds total £Nil (2020: £Nil).

6 Expenditure on raising funds

a) Costs of trading activities

Trading subsidiary costs
Allocated support costs
Costs of trading activities		 Note
8
Direct costs
£
7,351		 Unrestricted
funds
General
£
7,351
3,175
10,526
Allocated
support
costs
£
3,175		 Total
2021
£
7,351
3,175
10,526
Total
2021
£
10,526		 Total
2020
£
5,348
1,087
6,435
Total
2020
£
6,435

Page 30

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

7 Expenditure on charitable activities

Note
Teaching costs and
related expenditure
Running costs and
school
maintenance
Staff costs
Support and
Governance costs
8		 Unrestricted
funds
General
£
199,404
225,294
1,297,847
225,251
1,947,796		 Restricted
funds
£
-
1,492
-
-
1,492		 Total
2021
£
199,404
226,786
1,297,847
225,251
1,949,288		 Total
2020
£
199,256
218,347
1,175,337
222,138
1,815,078

£1,941,700 (2020 - £1,813,586) of the expenditure above was attributable to unrestricted funds and £1,492 (2020 - £1,492) attributable to restricted funds.

Page 31

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

8 Analysis of governance and support costs

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
432
Audit and accountancy
fees
U
7,762
Bank charges
U
-
Loan interest
U
-
Sundry expenses
U
-
Bad debt provision
U
-
Ipad Lease
U
-
8,194		 Other
support
costs
£
3,175
Other
support
costs
£
Total
2021
£
120,713
120,713
22,875
22,875
11,792
11,792
4,882
4,882
12,229
12,229
16,598
17,030
14,330
22,092
2,188
2,188
11,945
11,945
-
-
(3,527)
(3,527)
3,032
3,032
217,057
225,251		 Total
2021
£
3,175
Total
2020
£
116,533
32,670
10,174
4,158
11,225
5,166
20,364
2,040
9,935
2,996
1,483
5,394
222,138

Basis of allocation

Reference Method of allocation U Unrestricted R Restricted

Page 32

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

9 Net incoming/outgoing resources

Net (outgoing)/incoming resources for the year include:

Audit fees
Other non-audit services
Depreciation of fixed assets		 2021
£
7,762
6,452
51,898		 2020
£
7,542
4,418
52,568

10 Trustees remuneration and expenses

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

£Nil (2020: £55) of expenses were reimbursed during the year.

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
Redundancy payments		 2021
£
1,168,714
85,558
149,288
15,000
1,418,560		 2020
£
1,062,655
88,473
140,742
-
1,291,870

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

Teachers
Admin and Support		 2021
No
35
23
58		 2020
No
33
25
58

The full time equivalent numbers of staff for the same period was Teachers 26 (2020: 26) and Administration and support 13 (2020: 13).

During the year, the group made redundancy and/or termination payments which totalled £15,000 (2020 - £Nil).

Page 33

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

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

£60,001 - £70,000
£110,001 - £120,000		 2021
No
-
1		 2020
No
1
-

Following the headmaster's retirement on grounds of ill health, the total remuneration figure is higher than previous years since it includes the full cost of the settlement reached.

The total employee benefits of the key management personnel of the group were £424,064 (2020 - £355,821.

1 (2020 - 1) of the above employees participated in the Defined Benefit Pension Schemes.

12 Tangible fixed assets

Group

Cost
At 1 September
2020
Additions
At 31 August
2021
Depreciation
At 1 September
2020
Charge for the
year
At 31 August
2021
Net book value
At 31 August
2021
At 31 August
2020		 Land and
buildings
£
2,464,528
-
2,464,528
295,382
18,320
313,702
2,150,826
2,169,146		 Furniture and
equipment
£
244,890
11,507
256,397
157,012
21,419
178,431
77,966
87,878		 Computer
equipment
£
70,329
22,497
92,826
62,510
11,857
74,367
18,459
7,819		 Musical
instruments
£
18,919
-
18,919
16,665
302
16,967
1,952
2,254		 Total
£
2,798,666
34,004
2,832,670
531,569
51,898
583,467
2,249,203
2,267,097

Page 34

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

Charity

Cost
At 1 September
2020
Additions
At 31 August
2021
Depreciation
At 1 September
2020
Charge for the
year
At 31 August
2021
Net book value
At 31 August
2021
At 31 August
2020		 Land and
buildings
£
2,464,528
-
2,464,528
295,382
18,320
313,702
2,150,826
2,169,146		 Furniture and
equipment
£
244,890
11,507
256,397
157,012
21,419
178,431
77,966
87,878		 Computer
equipment
£
70,329
22,497
92,826
62,510
11,857
74,367
18,459
7,819		 Musical
instruments
£
18,919
-
18,919
16,665
302
16,967
1,952
2,254		 Total
£
2,798,666
34,004
2,832,670
531,569
51,898
583,467
2,249,203
2,267,097

Page 35

Notes to the Financial Statements for the Year Ended 31 August 2021

Sunninghill Preparatory School Limited

13 Fixed asset investments

Charity

Shares in group undertakings and participating interests

Cost
At 1 September 2020
At 31 August 2021
Net book value
At 31 August 2021
At 31 August 2020		 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
2021
2020
Subsidiary undertakings
Sunninghill Enterprises
Limited		 UK Ordinary 100%
100%		 Hire
facilities		 of

Page 36

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

Subsidiaries

Sunninghill Enterprises Limited is a company incorporated in England, registration number 09193650. Turnover for the year was £49,880 (2020: £21,565) and expenditure for the year was £21,528 (2020: £17,523). The profit for the financial period was £28,352 (2020: £4,042) and the aggregate of capital and reserves at the end of the period was £28,452 (2020: £4,142).

14 Stock

Stocks
15 Debtors
Trade debtors
Due from group undertakings
Prepayments
Accrued income		 Group
2021
£
2020
£
2,000
1,850
Group
2021
£
2020
£
24,652
20,340
-
-
22,653
25,253
31,464
34,605
78,769
80,198		 Charity
2021
£
2020
£
2,000
1,850
Charity
2021
£
2020
£
22,219
16,201
5,220
2,856
22,253
24,853
59,816
38,647
109,508
82,557		 Charity
2021
£
2020
£
2,000
1,850
Charity
2021
£
2020
£
22,219
16,201
5,220
2,856
22,253
24,853
59,816
38,647
109,508
82,557
82,557

16 Creditors: amounts falling due within one year

Bank loans
Trade creditors
Other taxation and social
security
Other creditors
Accruals
Deferred income		 Group
2021
£
2020
£
66,539
55,145
17,803
11,966
49,704
21,342
113,745
109,251
79,089
58,394
147,273
186,252
474,153
442,350		 Charity
2021
£
2020
£
66,539
55,145
17,803
11,936
49,704
21,342
113,745
109,251
75,683
55,413
143,873
165,590
467,347
418,677		 Charity
2021
£
2020
£
66,539
55,145
17,803
11,936
49,704
21,342
113,745
109,251
75,683
55,413
143,873
165,590
467,347
418,677
418,677

Page 37

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

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

Group Charity
2021 2020 2021 2020
£ £ £ £
Bank loan 66,539 55,145 66,538 55,145

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
Group
Deferred income at 1 September 2020
Resources deferred in the period
Amounts released from previous periods
Deferred income at year end
Charity
Deferred income at 1 September 2020
Resources deferred in the period
Amounts released from previous periods
Deferred income at year end		 2021
£
186,252
147,273
(186,252)
147,273
2021
£
165,590
143,873
(165,590)
143,873		 2020
£
176,607
186,252
(176,607)
186,252
2020
£
175,107
165,590
(175,107)
165,590

Page 38

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

17 Creditors: amounts falling due after one year

17 Creditors: amounts falling due after one year
Group Charity
2021 2020 2021 2020
£ £ £ £
Bank loans 383,724 372,411 383,724 372,411
Creditors amounts falling due after more than one year includes the following liabilities on which
security has been given:
Group Charity
2021 2020 2021 2020
£ £ £ £
Bank loan 383,724 372,411 383,724 372,411

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 £400,263 (2020: £427,556), representing 18.61% (2020: 19.71%) of the property carrying value at 31 August 2021.

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 £11,945 (2020: £9,935). 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.

Group

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

2021
£
After more than five years by instalments
158,969
Charity
Included in the creditors are the following amounts due after more than five years:
2021
£
After more than five years by instalments
158,969		 2020
£
160,163
2020
£
160,163

Page 39

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

18 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
2021
£
2020
£
37,687
68,337
26,853
-
64,540
68,337		 Charity
2021
£
2020
£
37,687
68,337
26,853
-
64,540
68,337		 Charity
2021
£
2020
£
37,687
68,337
26,853
-
64,540
68,337
68,337

19 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 £3,672 (2020 - £3,423).

Page 40

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

Teachers' Pension Scheme

Until 31st August 2021, the School participated in the Teachers' Pension Scheme ("the TPS") for its teaching staff. The School withdrew from the TPS with effect from 31st August 2021 after appropriate consultation with staff.

With effect from 1st September 2021 all teaching staff at the School agreed to change their contractual terms and conditions of employment and joined the School’s new defined contribution pension scheme with Royal London.

The pension charge for the year to 31st August 2021 includes contributions payable to the TPS of £145,616 (2020: £137,319) and at the year end £15,995 (2020: £15,257) was accrued in respect of contributions to this scheme. All relevant Employer and Employee contributions have been made into the TPS up to and including 31st August 2021.

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 41

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

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 42

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

20 Funds

Group

Unrestricted funds
General
Unrestricted income 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
2020
£
2,187,623
3,333
5,947
9,280
2,196,903
Balance at 1
September
2019
£
2,033,384
986
2,034,370
3,833
6,939
10,772
2,045,142		 Incoming
resources
£
1,872,584
-
-
-
1,872,584
Incoming
resources
£
1,973,274
-
1,973,274
-
-
-
1,973,274		 Resources
expended
£
(1,958,322)
(500)
(992)
(1,492)
(1,959,814)
Resources
expended
£
(1,819,035)
(986)
(1,820,021)
(500)
(992)
(1,492)
(1,821,513)		 Balance at 31
August 2021
£
2,101,885
2,833
4,955
7,788
2,109,673
Balance at 31
August 2020
£
2,187,623
-
2,187,623
3,333
5,947
9,280
2,196,903

Page 43

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

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

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 Cyber Coach dance equipment (£9,915) and this is being written off over the expected useful life of the asset.

Page 44

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

21 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
£
2,241,415
718,347
(474,153)
(383,724)
2,101,885
Unrestricted
funds
General
£
2,257,817
747,423
(445,206)
(372,411)
2,187,623		 Restricted
funds
£
7,788
-
-
-
7,788
Restricted
funds
£
9,280
-
-
-
9,280		 Total funds
at 31 August
2021
£
2,249,203
718,347
(474,153)
(383,724)
2,109,673
Total funds
at 31 August
2020
£
2,267,097
747,423
(445,206)
(372,411)
2,196,903

22 Analysis of net funds

Group

Cash at bank and in hand
Debt due within one year
Debt due after more than one year
Net debt
Cash at bank and in hand
Debt due within one year
Debt due after more than one year
Net debt		 At 1
September
2020
£
662,519
(55,145)
(372,411)
234,963
At 1
September
2019
£
489,508
(54,385)
(403,437)
31,686		 Financing
cash flows
£
(24,941)
(11,394)
(11,313)
(47,648)
Financing
cash flows
£
173,011
(760)
31,026
203,277		 At 31 August
2021
£
637,578
(66,539)
(383,724)
187,315
At 31 August
2020
£
662,519
(55,145)
(372,411)
234,963

Page 45

Sunninghill Preparatory School Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

23 Related party transactions

Charity

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 (2020: £Nil).

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

Sunninghill Enterprises Ltd

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

The trading subsidiary is due to donate profits of £28,352 (2020: £4,042) to the school within nine months of the financial year end. In addition, management charges of £9,000 (2020: £9,000) in respect of the year ended 31 August 2021 are receivable from the trading subsidiary.. At the balance sheet date the amount due from Sunninghill Enterprises Ltd was £5,220 (2020 - £2,856).

Humphries Kirk

(C Keenan, a trustee at Sunninghill Preparatory School Limited, is a partner at Humphries Kirk Solicitors)

During the year, legal advice fees of £432 (2020: £1,395), including VAT, were paid to Humphries Kirk of which, C Keenan is a partner. At the balance sheet date the amount due to/from to Humphries Kirk was £Nil (2020 - £706).

Page 46