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.
- Preparing staff for the forthcoming ISI inspection.
• 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.
- Improving the Holiday Club provision.
- Continuing to improve the Information and Communications Technology (ICT) facilities in the
- School.
- Upgrading the girls’ toilets.
- Continuing to maintain the fabric of the building (and the grounds) in keeping with its listed status.
• 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.
- Senior Staff and Special Educational Needs Coordinators attended ISI inspection training.
- Installing a cycle shelter donated by the PTFA.
- Recruiting a Holiday Club Leader and supporting staff.
- Refurbishing facilities to provide a dedicated Holiday Club.
- Releasing funds to enable expenditure on refurbishment projects.
- Purchasing of projectors, interactive white boards, laptops and Audio-Visual equipment.
• 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.
- Maintaining the community defibrillator in the School grounds for use by the whole community.
• 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.
- To continue to prepare for the EQI inspection due in 2021/22.
- To continue investing in the School’s website and social media presence.
- To investigate replacing the homework diary with an online platform such as Seesaw.
- To improve communications for parents and pupils via a dedicated app ‘School Ping’.
- To trial ‘SchoolCloud’ software to facilitate online parent meetings.
- To improve the After-School Club area with new resources.
- To update the boys changing rooms.
## **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 we live up to our mission statement;
- to provide a safe environment for our children;
- to ensure that the high level of teaching and learning is maintained;
- to ensure we retain and recruit high quality staff;
- to ensure we maintain an effective strategic plan for the School for the medium and long term;
- to ensure we maintain strong and effective governance of the School;
- to meet our legal obligations with regulatory compliance, to include Health & Safety and Employment law;
- to comply with Charity and Company law;
• to ensure that the School campus is maintained and that day to day operational controls are in place; and
- to maintain high levels of financial controls.
The key controls used by the Charity and its subsidiary undertakings to mitigate the risks include:
- formal agendas and minutes for all Committee and Board activity;
- detailed terms of reference for all Committees;
- comprehensive strategic planning, budgeting and management accounting;
- established organisational structure and lines of reporting;
- formal written policies;
- clear authorisation and approval levels;
- vetting procedures as required by law for the protection of the vulnerable; and
- whole school risk assessment.
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:
- select suitable accounting policies and apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the 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:
- give a true and fair view of the state of the group's and parent charity's affairs as at 31 August 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **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**
- In our opinion, based on the work undertaken in the course of the audit:
- the information given in the and Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Trustees' Report has been prepared in accordance with applicable legal requirements.
## **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:
- adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## **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.
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## **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:
- obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework;
- inquired of management, and those charged with governance, about their own identification and assessment of the risks or irregularities, including known and actual, suspected or alleged instances of fraud;
- discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.
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