2022-08-31-accounts

Registered number: 04002372 Charity number: 1084965

Dame Allan's Schools

(A company limited by guarantee)

Annual report

31 August 2022

Dame Allan's Schools

(A company limited by guarantee)

Contents

	Page
Reference and administrative details	1 - 2
Governors' report	3 - 14
Governors' responsibilities statement	15
Independent auditor's report to the members of Dame Allan's Schools	16 - 19
Statement of financial activities	20
Balance sheet	21
Statement of cash flows	22
Notes to the financial statements	23 - 45

Dame Allan's Schools

(A company limited by guarantee)

Reference and administrative details Year ended 31 August 2022

Governors	Mr I Belsham, Co-optative Governor (Chairman)
	Professor E G N Cross, nominated by the University of Newcastle upon Tyne (Vice Chair) (resigned 26 January 2022)
	Mr D Arthur, Co-optative Governor
	Mrs C Bell, Co-optative Governor
	Mr M Davison, Co-optative Governor (resigned 22 June 2022)
	Mr T Gray, Co-optative Governor
	Mrs M Hinson, Co-optative Governor
	Dr S L Johnson, Parent Governor (appointed 17 November 2021)
	Mr W J Lomas, Co-optative Governor
	The Very Reverend G Miller, Ex-officio Governor, Dean of Newcastle (resigned 21 October 2022)
	Dr V Morrell, Parent Governor
	Dr P Paes, Co-optative Governor
	Ms K E Storie, Co-optative Governor
	Mr S Taylor, Parent Governor
	Mr A Chicken, Co-optative Governor (appointed 20 October 2022)
Company registered number 04002372 Charity registered number 1084965 Registered office Fowberry Crescent Fenham Newcastle Upon Tyne NE4 9YJ Principal Mr W M Scott Clerk to the Governors Mrs V McDonald Independent auditor UNW LLP Citygate St James' Boulevard Newcastle upon Tyne NE1 4JE Bankers Lloyds Bank plc 102 Grey Street Newcastle upon Tyne NE99 1SL Solicitors Muckle LLP Time Central 32 Gallowgate Newcastle upon Tyne NE1 4BF

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Dame Allan's Schools

(A company limited by guarantee)

Reference and administrative details (continued) Year ended 31 August 2022

Investment advisers Brewin Dolphin Securities Limited Time Central 32 Gallowgate Newcastle upon Tyne NE1 4SR Rathbones Investment Management Earl Grey House 75-85 Grey Street Newcastle upon Tyne NE1 6EF Insurance broker Marsh Brokers Limited Capital House 1-5 Perrymount Road Haywards Heath West Sussex RH16 3SY

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Dame Allan's Schools

(A company limited by guarantee)

Governors' report Year ended 31 August 2022

The Governors present their report and financial statements for the year ended 31 August 2022 and confirm they comply with the requirements of the Charities Act 2011, the Trust Deed and the Charities Statement of Recommended Practice (FRS 102).

PURPOSE AND ACTIVITIES

Dame Allan's Schools is a charitable company limited by guarantee. The Charity was established for the provision of day schools for girls and boys in or near the City of Newcastle upon Tyne.

Vision

Our vision is for every child at Dame Allan’s to seize opportunities for discovery and development with confidence, pursuing excellence in everything they do.

Our mission

Dame Allan's Schools exists to provide a rich and inspiring experience of education, to bring opportunity and aspiration to the lives of children, to impart a lifelong love of learning and prepare them with the skills, attributes and values to lead meaningful and successful lives, enabling them each to make their own positive contribution to society.

Our ethos

Our values - we exist to provide the best education to every pupil, regardless of background, within an inspiring and supportive environment as informed by the Schools’ Anglican foundation and traditions. Embedded within our diamond structure is the expectation that pupils are not only purposeful and tenacious in their endeavours, but also tolerant and supportive of each other, underlining our view that when children feel valued and known, they can grow into happy and successful adults.

Discovery and achievement - Dame Allan's pupils are challenged to discover and develop their sporting, artistic, leadership and other talents alongside their academic abilities, and to aspire for excellence in all that they do. They should always strive for their best, recognising setbacks as opportunities to reflect and learn. At Dame Allan's, pupils are given a structure and richness of experience through which new skills are learnt and knowledge embedded. They grasp opportunities to achieve beyond any externally or self-imposed limits and press ahead confidently in their academic and personal development.

Within the Dame Allan's family and beyond - at the heart of our aims is a concern for each pupil’s welfare and for their positive development as an individual and member of the Dame Allan's family. Whilst the Schools are a community of pupils, parents, staff, alumni, governors and others, we value the individual’s needs and recognise the importance of supporting each other. We emphasise the interdependence of the individual and the community at local, national and international levels. We ask pupils to show care and concern for others within this orderly and supportive place, acting with consideration and respect for other people, themselves and their environment.

Allanian Core Values

Drawn from our ethos and captured in our code of conduct - RESPECT - we ask every pupil to be:

• R Respectful - we treat others as we would wish to be treated

• E Environmentally aware - we respect our surroundings

• S Sensitive - we are honest, polite, compassionate and sensible P Prepared - we are completely ready for the day ahead

• E Enthusiastic - we make the most of every opportunity the Schools offer

• C Conscientious - we do the best we can in all school activities

• T Tenacious - we never give up

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Dame Allan's Schools

(A company limited by guarantee)

Governors' report (continued) Year ended 31 August 2022

Dame Allan’s Schools First Principles

In pursuit of our vision, mission and ethos, the following first principles inform the priorities and standards which guide the management of the Schools:

1. providing caring, professional, high quality education

2. commitment to the diamond model of education

3. providing an academic curriculum which is broad, balanced and challenging

4. promoting the education of our pupils in the round

5. encouraging pupils to develop their intellectual and creative horizons in an atmosphere of trust and support

6. commitment to our Anglican foundation, whose Christian ethos informs the actions and activities undertaken by the Schools

7. efficient and professional management systems and practices which will allow us best to deliver our objectives

8. recruiting, developing and retaining high quality, well motivated and caring staff

9. principle of sustainability

10. committed to inclusivity

11. high quality governance

Activities for achieving our purpose

Dame Allan's Schools aim to provide a first class education for boys and girls aged 3 to 18, from all cultures and backgrounds within a supportive environment informed by the Schools' Anglican foundation and traditions. Pupils are encouraged to make the best use of their many and varied abilities. The Schools look to establish and maintain high moral standards within a clear framework. The Schools provide a structure within which skills are learnt and knowledge gained so that pupils may achieve the best academic results of which they are capable. The Schools aim to prepare pupils to flourish as adults in a rapidly changing world.

The Schools also aim to provide a rich mixture of experiences for pupils to develop sporting, artistic, leadership and other talents alongside their academic achievements. They encourage pupils to develop an awareness of their individual strengths and to make full use of them.

The Schools encourage the development of the qualities of self-discipline, self-confidence and independence whilst creating a community in which all members care for each other as in a family. They also emphasise the interdependence of the individual and the community at local, national and international levels and encourage pupils to show care and concern for others.

At the heart of these aims is a concern for each pupil's welfare and for their positive development as an individual and as a member of the Schools' community both inside and outside the classroom. This development is to be within an orderly, safe and supportive community in which all members feel comfortable and act with consideration and respect for other people, themselves and the environment.

The Schools are committed to safeguarding and promoting the welfare of pupils and expect all staff and volunteers to share this commitment. The Schools have an excellent reputation for the pastoral care provided to pupils. Parents are given regular information about their children's social and academic progress through parents' evenings in addition to written termly grades and annual reports. The Schools maintain regular contact with parents throughout the year through informal contacts and through newsletters and events.

The Schools' diamond structure allows them to provide a pastoral system which recognises the separate needs of boys and girls and which is also small enough to ensure that all pupils receive individual attention and support. The Heads of the Boys' School, Girls' School and Sixth Form are supported in their endeavours by Heads of Section and Assistant Heads of Sixth Form respectively. Assistant Heads of Sixth Form focus on the separate needs of Year 12 and 13, overseen by the Head of Sixth Form. The role of the Director of Studies is to link the Schools' concern for pupils' pastoral care and their academic development. The role of Director of Pupil Wellbeing is to ensure that pupil welfare is at the centre of our work. In the Junior School, the Head is supported by the Deputy Head, phase leaders and pastoral leads whose responsibility is for the academic and pastoral oversight of pupils in their care.

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Dame Allan's Schools

(A company limited by guarantee)

Governors' report (continued) Year ended 31 August 2022

The Schools also make use of the services of external counsellors, an in-house psychological therapist and chaplain who base their work in ‘The Snug’ a purpose-built facility for pupil wellbeing. Senior pupils also provide support for younger pupils both as form prefects and mentors and also as students who complete the Schools' in-house listening skills course.

The Schools' policy on admission states that they seek to select pupils of academic potential irrespective of any protected characteristics. Entrance examination and interview procedures are arranged to ensure that no applicant is disadvantaged. Special arrangements are made in advance of examinations or interviews for any applicant who has a disability including the provision of extra time for applicants who have a recognised specific learning difficulty. Arrangements are discussed in advance with the parents and the current school of the candidate. Relevant specialist reports are sought in advance of entrance examinations and interviews where appropriate.

Once admitted to the Schools, all pupils and staff are offered opportunities in accordance with the Schools' policy which states that the Schools are committed to securing equality of opportunity through the creation of an environment in which all individuals are treated on the basis of their relevant merits and abilities. The Schools oppose all forms of unlawful or unfair discrimination towards any members of the Schools' community on the grounds of any protected characteristic, and aim to ensure equal treatment for all. The Schools promote the concept of equality of opportunity throughout the organisation, both for staff and pupils.

The Schools are also committed to promoting the health, welfare and safety of their pupils both by ensuring that safe recruitment policies and practice are followed with regard to all staff - teaching and support - and also by maintaining and further developing the Schools' pastoral care, described in the 2019 inspection report as excellent.

STRATEGIC REPORT

Public benefit

All education provides public benefit in enabling young people to grow into successful, civic-minded contributors to society throughout their adult lives. Further to this, Dame Allan’s admits a significant number of pupils on means-tested bursaries, children whose families would not be able to afford the fees and who are therefore provided with the highest quality of education at no cost to the taxpayer. In 2021/22 means-tested fee remissions amounted to 10.8% of our gross fee income, assisting 170 pupils in total.

Our young people go on to achieve many things, forging careers and building communities, adding to the civic capital of our country to the benefit of wider society. The Schools also engage in a significant number of partnerships with local charities, grassroots organisations and schools, enabling access to our facilities and teaching expertise, for instance.

Examples of our public benefit are woven throughout this report, much as it is through the life of our Schools and their integral place in our local community.

Economic impact

As well as the public benefit summarised above and detailed throughout this report, Dame Allan’s provides a substantial economic benefit to the city of Newcastle and the surrounding region, as well as the national economy. Calculations from the Independent Schools Council estimate that in 2021/22 Dame Allan’s Schools’ total contribution to national GDP was £22.8mn through direct and indirect channels; 1,231 pupils were educated at no cost to the state, providing a direct saving of £7.3mn to the taxpayer; additionally, tax which was paid directly and indirectly as a result of our activities came to a total of £6.4mn.

The local economy was supported by direct employment of 230 staff, the substantial majority in higher income roles, with an additional 224 jobs supported nationally through suppliers and the expenditure of staff incomes. Our situation in the west of Newcastle, a local authority ranked 36th most income-deprived of 316 in England, means that we are bordered by wards in the 10% most deprived in the country. Many of our pupils on bursary assistance live in these wards, within walking distance of the Schools.

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Dame Allan's Schools

(A company limited by guarantee)

Governors' report (continued) Year ended 31 August 2022

The economic and social benefit of our school is felt well beyond our walls through the employment, education and partnerships that are the hallmark of the Schools.

Pupil numbers and fees

Our educational activities are carried out through our Senior Schools, Sixth Form and Junior School. Pupil numbers in the Schools continue to grow: the current roll of 1,257 showing a 2.2% growth on the 2021/22 figure of 1,230 and a 6.5% growth from the 2020/21 figure of 1,180. The growth in pupil numbers has been evident across the Schools, with the Junior School close to its capacity of 320 pupils and a marked and very encouraging growth in Girls' School numbers despite the extensive provision for girls in the Newcastle independent school sector.

The Governors are conscious of the pressures on parents to meet fees and have continued to ensure that any rises are kept to the minimum possible. The fees are therefore set at a level to ensure the financial viability of the Schools and at a level that is consistent with our aim of providing a first class education to boys and girls. The tuition fees for the academic year 2021/22 were £4,727 per term in the Senior Schools (Key stages 3 and 4) and in the Junior School £3,830 (Key stages 1 and 2) and £3,577 (Early Years) per term respectively.

Pupils’ academic progress

Dame Allan’s aims for pupils to achieve excellent outcomes in a broad and challenging academic curriculum throughout their time at school, both in relation to their individual starting points (value-added) and in national benchmarks. Academic developments focus on meeting the needs of every individual learner, inspiring and expecting their best, challenging and supporting as needed, in order to encourage inquiry, aspiration and determination, with a culture of high expectations and excellence at the heart of every endeavour. A key area of focus is raising the sights of all pupils, exposing them to valuable experiences and opportunities that lie beyond the confines of the North East of England. The Schools continually build on existing systems and practice to remain at the forefront of technology in education.

The summer series of GCSE and A Level examinations were the first in three years, following the 2020 Centre Assessment Grades (CAGs) and the Teacher Assessed Grades (TAGs) of 2021. As with 2020 and 2021, the 2022 results cannot be compared directly with 2019 results due to the Ofqual adjustments of grade distributions in allowance of learning loss over the pandemic. Positively for our pupils this year, though, their focus and determination throughout the pandemic paid off and their results compare favourably with those of 2019. It also reflected well on the Schools that our academic and pastoral provision throughout a difficult period supported our pupils’ needs and aspirations, thanks to the professionalism and dedication of staff.

Of our 360 A Level exam entries, over 55% were graded at A/A and almost 84% at A-B. Of the total of 115 A Level candidates, nine pupils achieved all As and 37 altogether gained all A or A grades.

Dame Allan’s % results at each grade (cumulative), last 5 years:

A A B C D E 2018 5.6 24.4 56.7 83.3 94.4 98.9 2019 7.6 34.5 65.2 87.5 96.6 99.4 2020 19.5 52.5 81.9 96.8 99.6 100 2021 24.8 54.7 83.6 94.2 98.9 100 2022 22.8 55.6 83.9 95.6 99.2 100*

Ofqual’s stated aim for 2022 was that results would move down towards 2019 levels, roughly halfway back from that of 2021. Across England, A grade awards this year fell to 14.5% (19.1% in 2021, 7.7% in 2019) and A/A to 35.9% (44.3% in 2021, 25.2% in 2019). In the North East, 30.8% of grade awards were at A*/A.

Of our 1,048 GCSE entries across the Boys’ School and Girls’ School, over 71% were awarded grades 9 to 7 and 85% were grades 9 to 6. Of our 113 GCSE candidates, 18 pupils achieved all grades 8 and 9 and 40 of them gained all grades 9 to 7 (A* and A in letter grade terms).

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Dame Allan's Schools

(A company limited by guarantee)

Governors' report (continued) Year ended 31 August 2022

Dame Allan’s % of results at grades 9 to 7, last 5 years:

Girls Boys Combined % grade 9-7 % grade 9-7 % grade 9-7 2018 66.3 66.1 66.2 2019 63.4 53.7 58.1 2020 76.7 67.7 72.1 2021 77.9 60.7 68.8 2022 76.4 67.0 71.2*

• 2018 results include A*/A grades in unreformed subjects. 2020 and 2021 were school-assessed grades.

Again, Ofqual’s stated aim for 2022 was that results would move down towards 2019 levels, roughly halfway back from that of 2021. Across England, GCSE results at grades 9 to 7 fell to 27% (30% in 2021, 21.8% in 2019); in the North East, 22.4% of results this year were at grades 9 to 7. The independent sector nationally achieved 53% grades 9 to 7 (61.2% in 2021, 47% in 2019) showing a substantial drop of over 8 percentage points from teacher assessment to full formal exams. Positively for our Year 11 pupils this year, a return to exams allowed them to demonstrate their ability and preparation, and these results compare favourably with those of 2019, the first year with number grades only and the reformed, tougher GCSEs across the board.

In recognition of the strong results of 2022, the Schools were awarded North East Independent School of the Year by the Sunday Times Parent Power.

Pupils’ personal development and welfare

Dame Allan’s aims for pupils to develop into successful young adults, with the Allanian ethos and values ingrained in their outlook and dealings with others. Dame Allan’s is a family where pupils feel included and known, empowered to engage with their work and play, to share their problems and failures as well as their successes, to help and support each other, and to take calculated risks in pursuit of their goals. Dame Allan’s pupils are stimulated and challenged to develop skills and expertise for high performance in a number of areas throughout the co-curriculum, not only in their existing areas of strength and interest but also in a range of other enjoyable and challenging activities. Pupils are expected to contribute, through participation and leadership, to the wider life and success of their school, as well as the local community and wider society.

The impact of the pandemic on the lives of children can be measured directly in the short term through assessments of learning loss and social development. Such losses have been limited in the main, for Dame Allan’s pupils, through the systems and skills of our teaching staff whose determination to do the very best for pupils has been a hallmark of the past two years. Longer term effects will not be fully known for many years but, in the broader education sector, there is a clear picture emerging of the pandemic’s impact on the mental health of young people.

Our response to this has been a reorganisation of our safeguarding and pupil wellbeing provision, focused on the new senior leadership role of the Director of Pupil Wellbeing; systematic reviews of our Personal Social Health and Economic Education (PSHEE) programme; expansion and restructuring of counselling and psychotherapy services; an increased focus on wellbeing in our Designated Safeguarding Leads training; and increasing use of systems such as Zoomos and surveys to gauge wellbeing, among many other things. ‘The Snug’, our wellbeing suite, enables us to offer counselling services in a safe and quiet space for children who may need time out from the busy school day, and we have two ‘therapy’ dogs, one at each of the junior and senior sites.

Physical exercise and other co-curricular activities have long been a mainstay for our pupils. We have added significantly to our already broad and high quality co-curriculum, creating a new senior leadership role dedicated to the management of this key part of our offering, the Director of Co-Curriculum.

In sport, a significant number of pupils were successful in achieving selection at county, regional and national levels. Many pupils were active in the wider area of outdoor pursuits. The Schools remain the biggest single

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Dame Allan's Schools

(A company limited by guarantee)

Governors' report (continued) Year ended 31 August 2022

centre for the Duke of Edinburgh Award in the whole of Northumberland and Newcastle, allowing pupils to test qualities of personal organisation, physical fitness and resilience whilst also developing their skill sets and making a contribution to the good of society through the community service element of the award. Opportunities to explore new activities and develop new skills closer to home were again provided by the Schools' CCF (RM) detachment which is filled to capacity.

Public speaking and the Schools' drama programme are both nurtured through activities such as the annual Shakespeare Festival, the public speaking competition and the Schools' LAMDA provision which see a number of pupils receive certificates and medals in a range of activities including public speaking and drama. A wealth of school productions, from the Senior Schools' play through to the Junior School's nativity, all form a part of the range of opportunities for every pupil to take part.

Dance has long played a central role in the performing arts at Dame Allan's as is evident from the success of alumni in the world of dance with leading roles at the Rambert company and the London Contemporary Dance School. Various dance shows during the year are evidence of a department which achieves the very highest standards.

The opportunity to develop talent from the age of 3 onwards is equally important to the Schools' musicians. The Schools have had many outstanding music pupils over the years. However, the musical work of the Schools extends beyond just the prodigiously talented students and encompasses a range of styles and genres, from Dame Allan's long established choral tradition - especially with strong connections to Newcastle Cathedral - to orchestral music, traditional music and rock music. A substantial number of music events take place throughout the year including an excellent house music competition and gatherings of choral and instrumental performances.

Charitable donations - the period has seen significant donations to a number of charities, with almost £9,000 raised during the period covered by these accounts. Thanks to various fundraising activities in both schools including non-uniform days, 'bake offs', social enterprise activities, donations were able to be made to many local and national charities including Children in Need, Comic Relief, Macmillan Cancer Support, MIND, Unicef and the Red Cross Ukraine Appeal.

Staff capacity

Dame Allan’s employees are well-qualified and motivated teachers, support staff and managers, all of whom work together effectively in order to provide excellent education and pastoral care, high class facilities, and effective management. Sound recruitment processes and attractive terms of employment enable the Schools’ to attract well-qualified applicants. Well-resourced and targeted training, mentoring, staff appraisal and incentives encourage staff to engage in reflective practice and continuous processes of professional and career development. Adequate career development opportunities and incentives promote the retention of key staff in competitive recruiting markets. Dame Allan’s presents a positive, inclusive and supportive work environment.

The attraction of working in teaching or support roles at Dame Allan’s remains strong with high numbers of qualified candidates applying for advertised roles. A significant proportion of teaching staff are also able to develop their careers while working at Dame Allan’s with three quarters of those who secure new posts, externally and internally, achieving promotion in their move.

The Governors wish to thank all staff at Dame Allan's Schools for their dedicated work and enthusiastic contribution towards ongoing developments, especially during a period that has been immensely challenging. Demonstrating professionalism and commitment, staff have tirelessly sought to meet the needs of pupils.

Marketing, admissions and communications

Dame Allan's is marketed effectively as a leading independent school in the North East, as producing the highest quality opportunities, care and outcomes for pupils, and communicating this effectively, especially with respect to our diamond structure, in our market and with all stakeholder groups. High demand for places enables the Schools to achieve cost efficiency in the diamond structure while maintaining academic intake standards. We understand our market in a variety of ways through surveys and feedback from a wide range of stakeholders, including leavers and parents who chose other schools. We aim for the presentation of the

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Dame Allan's Schools

(A company limited by guarantee)

Governors' report (continued) Year ended 31 August 2022

Schools to be ‘best in sector’ through website, materials, events and experiences of external stakeholders, with brand management, marketing and communication plans in place to raise standards.

The Schools manage external and internal relations and reputation through effective PR and communications, led by our Head of Marketing Admissions and Communications. The success of this department, within the context of the wider successes of the Schools, means that demand for places has been strong in recent years and, over the longer term since the impact of the 2008 global financial crisis, pupil numbers have risen across the Schools by 40%. Demand remains strong with waiting lists at some entry points. Retention at the key transition points in Years 6 and 11 remains high, indicating that pupils and their families are satisfied with the quality of the education provided.

Development - fundraising, alumni and partnerships

Dame Allan’s engages with alumni, parents, partners and potential donors such as individuals, trusts and foundations, forging beneficial relationships to secure the future development of the Schools. Part of this activity is fundraising in support of the bursary support we provide. We also engage in a myriad of partnerships with local charities and schools.

Bursaries and scholarships

In order to ensure that the opportunity to benefit from the education offered by Dame Allan's is not limited by the ability to pay fees and that families on a low income are not excluded from the opportunity to benefit, the Schools have, for some years, made available bursaries to applicants from Year 3 upwards whose parental circumstances are such that they would not be able to attend the Schools without such an award.

These awards are means-tested and applicants must satisfy the Schools' entrance criteria. Bursaries are tenable throughout a child's school career subject to satisfactory work and conduct under annual review. Applicants for the Sixth Form are eligible for a Don Walker bursary which is offered initially to our current students whose parents fulfil the same criteria as our regular bursary holders, and then to the wider public. Bursaries are offered according to parental means, assessment of which considers a number of factors including family income, investments, property, savings and family circumstances. Awards of up to 100% of fees are available. The Schools' bursary funds also support current pupils whose place in the Schools might be in jeopardy as a consequence of changes in family circumstances, such as parental illness or redundancy.

The Schools also offer academic scholarships to Senior School applicants - to a maximum of 50% of fee remission - in order to recognise high academic potential. Scholarship awards are based on results achieved in the Schools' entrance examinations. Fee remissions are also available to the third and subsequent children of any family educated in the Schools in order to underline the value we place on family links. A scheme also provides fee reductions to children of all staff employed by the Schools.

The Governors view bursary and scholarship awards as important in widening access to the education the Schools provide. The Governors regularly review the Schools' bursary awards policy to ensure that children can accept offers of places at our Schools through the availability of means-tested fee assistance. The number of bursary applications for the 2021/22 academic year continued to increase, and as a result, 31 Bursary offers were accepted by pupils who joined the Schools in September 2021.

Research by the Independent Schools' Council also indicates that Dame Allan's bursaries are providing education for pupils whose circumstances are such as to make paying for education an impossibility without such support. The Schools are delighted that, with the support of generous donors to our bursary campaign, they can remain true to the traditions of "good education" which our founder established some 318 years ago. For the year ended 31 August 2022, the value of means-tested bursaries totalled £1,789,191 (31 August 2021 - £1,708,191) and represented 10.8% (2021 - 11.3%) of our gross fees. They provided assistance to 170 or 13.8% (2021 - 170 or 14.4%) of our pupils of whom 65 (2021 - 72) pupils benefitted from 'high-level bursaries' (defined as being a fee remission of over 90%). Given the independent sector average of 1% of all pupils being in receipt of such bursaries, the Schools do feel that they are making a significant contribution to social mobility through this scheme.

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Dame Allan's Schools

(A company limited by guarantee)

Governors' report (continued) Year ended 31 August 2022

The purpose of our scholarship awards is to recognise high academic potential. These are awarded on the basis of the individual's educational merit and potential. Scholarships are awarded with a fixed remission of fees between 10% and 50%. Where further assistance is required, scholarship awards may be supplemented by a means-tested bursary.

During the 2021/22 academic year, 165 pupils (2021 -190 pupils) were in receipt of a scholarship, awarded for their educational merit and potential. Of this number 64 (2021 - 63) also qualified for means-tested bursary support and are included in the figures relating to bursary awards. The progress of pupils receiving scholarships is reviewed at least annually to ensure their progress is in line with their abilities. No scholarships were withdrawn in the year as a result of reviews.

Facilities and infrastructure

The Schools are continuing to develop facilities and infrastructure in support of our educational offer and effective management of the Schools. Our aim is to offer functional and inspiring spaces for teaching, study, assembly, performance and exhibition, and high quality sports facilities that will enable elite programme development and wide pupil participation. Further developments are planned to ensure the Schools’ physical presentation, facilities and development plans support pupil admissions at all times. We also plan increasingly to use our facilities as a source of revenue and to support our partnerships.

The most significant development of the last ten years was started in September 2021 and completed in time for the start of term in September 2022 - the Jubilee Building. This project, to provide state of the art facilities with a new block of classrooms, laboratories, art suite and gallery, offices and other facilities, has transformed the north end of our Fenham site. Plans for further developments on the Fenham site include replacement of the astro pitch with a larger upgraded facility, due to start in 2023, and the extension and modernisation of the Queen’s Building, the sixth form centre, which has started in 2023.

Governance and management

The Governors and management identify and prioritise strategic objectives for the development of Dame Allan’s Schools. Governors monitor, verify, support and challenge management progress towards strategic objectives and the senior management team provides effective development and operational leadership towards meeting strategic objectives. All Governors of the Schools are also trustees of the charity and they have received extensive training to ensure their understanding of their roles and obligations under charity law, guidance and codes, in order to act in the best interests of the charity.

A key development in the governance of the Schools has been the creation of a strategic plan, with associated performance indicators, and regular, focused, reporting structures. A full review of the Schools’ governance has been conducted by the Association of the Governing Bodies of Independent Schools (AGBIS) in order to ensure that our structures and practice are at the standard of the best in the sector. Improvements have taken place in Governor recruitment and induction processes.

Governor training has been frequent, regular and focused on the key roles and responsibilities of Covernors and trustees, including in safeguarding of children. Governors have increased their awareness of issues and involvement in school life through a variety of means such as lesson visits, department links and safeguardinglinked Governors.

The Schools are moving towards environmental sustainability. A programme of installation of LED lighting across both sites is ongoing and the new Jubilee building has been designed with PIR sensors to further reduce the Schools’ energy consumption. A ground source heat pump is in operation at the Junior School and both sites make use of photovoltaic panels, with additional panels planned for the Senior School in the near future.

There is more that can be done and improving our environmental sustainability has been set as a strategic objective of the Schools. The recent appointment of a Facilities Manager will help to increase focus on this key issue and to reduce our impact on the environment as well as reducing costs.

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Dame Allan's Schools

(A company limited by guarantee)

Governors' report (continued) Year ended 31 August 2022

FINANCIAL REVIEW

The Schools' day to day charitable activities are self funding. The Schools' fee income for the 12 month period was £13,681,479 (31 August 2021 - £12,126,430). Overall a net surplus of £682,144 (2021 - £564,941) is reported for the year.

The net cash inflow from the Schools' operating activities for the financial year was £2,667,415 compared to a net inflow for the previous year of £1,438,896.

Going concern

At the balance sheet date, the charitable company had a net current liability position of £3,517,206 (2021: net assets of £3,058,477). The net current liability position has arisen due to the development loan in place at the year end, repayable on demand, for the new Jubilee Building. Post year end, in February 2023, this has been converted into a long-term loan and the charitable company has returned to having net current assets.

The Governors have prepared forecasts for the future activities of the charitable company covering a period of at least 12 months from the date of the approval of these financial statements, which show the charitable company continuing to operate within available facilities. In addition, longer term scenarios have also been modelled which include evaluating the potential impact of the loss of charitable status, the introduction of VAT on fees, the loss of Business Rates Relief and a further increase in contributions to the Teachers' Pension Scheme.

In 2011, the Governors secured a 25 year mortgage facility from Lloyds bank for the development of the Junior School and in 2022 have secured a further facility for the development of the Jubilee building on the Senior School site. The Schools continue to maintain close contact with the bank which has indicated that required levels of support will be available to meet the charitable company's ongoing financial requirements.

The Governors therefore believe that the Schools have adequate resources in place to continue in operational existence for the foreseeable future and consequently the going concern basis has been adopted in preparing the financial statements.

Reserves

Note 19 to the financial statements shows the assets and liabilities attributable to the various funds by type, describes the various funds and summarises the year's movements on each fund. Unrestricted funds amounted in total to £12,332,875 however, this is not freely available because funds in excess of this figure are invested in fixed assets. Free reserves amounted to a deficit of £6,038,077 as at 31 August 2022 (2021 - deficit of £1,569,753). Free reserves, after taking into account amounts invested in fixed assets and the loans taken out to develop those assets amounted to £828,339 (2021: £2,919,185), this is calculated on the following basis:

Unrestricted funds Unrestricted tangible fixed assets Funded by loans (per note 18) Free reserves	2022 £ 12,332,875 (18,370,952) 6,866,416 828,339	2021 £ 11,136,437 (12,706,190) 4,488,938 2,919,185

Page 11

Dame Allan's Schools

(A company limited by guarantee)

Governors' report (continued) Year ended 31 August 2022

The Governors' objective is to maintain reserves that will permit them over time to maintain, develop and enhance the Schools' facilities in order to meet the Schools' long-term charitable objectives whilst at the same time maintaining tuition fees at a reasonable level. To that end, the Governors aim to ensure that there are sufficient reserves to afford reasonable protection to the charitable company in the context of current and anticipated commitments and exposure to identified risks.

The Schools' land and buildings are stated in the financial statements at historic cost, however the Governors consider the current valuation of these assets to be in excess of this. The Governors review the reserves position regularly and consider the current position to be satisfactory.

Investment powers policy and performance

The Governors' investment powers are governed by the Articles of Association. The Governors have delegated the management of the investment portfolios to Brewin Dolphin Limited and Rathbones Investment Management, but appraise their performance at regular intervals; the Governors' policy is to maintain income to fund bursaries, while preserving the market value of the investments.

Risk management

The Governors are responsible for the management of risk faced by the Schools. Risks are identified, assessed and controls established throughout the year.

• A formal review of the risk management process is undertaken annually. Areas covered are:

• Governance and management;

• Operational risks;

• Financial risks;

• Environmental/external factors;

• Compliance (laws and regulations).

The key controls used include:

• formal agendas for all Board and Committee meetings;

• terms of reference for all Governors’ Sub-Committees;

• comprehensive strategic planning, budgeting and management accounting;

• formal written policies;

• clear authorisation and approval levels; and

• verification procedures as required by law for the protection of children.

As a result of the risk management process, Governors are satisfied that the major risks identified have been adequately mitigated where necessary. The principal risks facing the Schools are set out below. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

Principal risks and uncertainties

Future government policy

The most significant risk facing the independent schools sector at present is the potential for future government policy to remove the tax reliefs associated with charitable status, including for business rates and corporation tax, and to add VAT to school fees. The impact of such policies would be severe and would likely require substantial restructuring and cost cutting measures in order to ensure financial sustainability.

The Schools will continue to manage finances prudently, with due regard to increasing political and financial risks, to monitor political developments closely, and to formulate detailed plans with necessary measures as and when policy decisions are made.

Page 12

Dame Allan's Schools

(A company limited by guarantee)

Governors' report (continued) Year ended 31 August 2022

Changes to employer contribution rates to the Teachers’ Pension Scheme

In 2019, as a result of a quadrennial valuation of the Teachers’ Pension Scheme, contributions by employers increased by 43%, from 16.48% of salary to 23.68%. As an independent school, Dame Allan’s has no access to ongoing government support. Funding is therefore not available to us to meet any of our costs, including those relating to teachers’ pensions. The last significant increase in employer contributions therefore required funding from existing school budgets, as would be the case again in any such revaluations in the future.

The results of the latest valuation are currently awaited but early indications, from the March 2023 announcement of the SCAPE discount rate to be used, are that contributions are expected to rise again by a considerable amount. The Schools are therefore engaged in planning mitigations for the event of a further increase which would, if not addressed, place an additional considerable burden on the Schools’ finances. The potential proximity of an increase in teachers’ pension costs with VAT and other tax changes is a source of considerable concern.

Income generation/pupil numbers

Along with other schools in the independent sector, one of the principal risks that the Schools face lies in a failure to grow or maintain pupil numbers. The affordability of private education remains a concern for many parents and the Governors are extremely conscious of this issue; they carefully review all fee increases and provide bursary awards to the extent funds permit.

Marketing of the Schools focuses on their diamond structure which allows for teaching appropriate to the needs of boys and girls during Years 7 - 11 at a time when single sex education has clear advantages but also allows co-educational teaching when appropriate - in both the Junior School and Sixth Form. Pupils at the Schools therefore have the "best of both"; the best environment in which to thrive academically and the best environment in which to develop socially. Pupil numbers, including trend analysis in pupil applications and retention, as well as the levels of bursary and scholarship awards made are reported on a regular basis to the Governors. All were pleasingly positive during the period.

The Schools' strong reputation for academic excellence and pastoral care attracts a significant level of applications for the places available in the Schools. The Schools manage any risk to this reputation by employing and developing highly skilled staff, by following effective safeguarding and staff recruitment policies, by providing high quality pastoral support for both pupils and staff and by their active identification and resolution of health and safety related issues.

Capital development

The Schools' premises consist of various buildings dating from the 1930s to the more recently built Junior School at Hunter's Moor and the brand new Jubilee building on the Senior School site. Along with academic excellence, the quality of facilities available can be a major decision factor for prospective parents choosing a school for their child's education and it is therefore important that the Schools continue to invest funds in this area. An on-going programme of work is in place to refurbish the older parts of the Schools and to create new facilities.

As a charity, the challenge always exists to ensure that the Schools remain financially sound. The Senior Schools were built in the 1930s and the Governors look to manage the risk of them not being suitable for twenty first century education by a process of planned redevelopment to meet the Schools' needs. Whilst demands on the Schools' financial resources are varied and are not always within the Governors' control (for example, changes to the Teachers' Pension Scheme contribution rates have had to be funded from existing fee income over the last few years and there is a risk that these will increase again in 2024), strong management of the Schools' income and expenditure has enabled the Governors to ensure there is sufficient fee income generated to cover both the day to day running costs of the Schools and to invest in the development of the senior site.

Page 13

Dame Allan's Schools

(A company limited by guarantee)

Governors' report (continued) Year ended 31 August 2022

PLANS FOR THE FUTURE

Whilst, as always, continuing to focus on maintaining and increasing pupil numbers in the Senior Schools, the Schools' other main priority for the future is to continue to maintain the significant levels of investment in and redevelopment of the Senior Schools' site. The Schools are well regarded in the North East and with ever increasing pupil numbers, the Governors believe that the future outlook for the Schools remains extremely positive.

Disclosure of information to auditor

Each of the persons who are Governors at the time when this Governors' Report is approved has confirmed that:

• so far as that Governor is aware, there is no relevant audit information of which the charitable company and the group's auditors are unaware, and

• each Governor has taken all the steps that ought to have been taken as a Governor in order to be aware of any information needed by the charitable company and the group's auditors in connection with preparing their report and to establish that the charitable company and the group's auditors are aware of that information.

The Governors' report, which incorporates the strategic report, was approved by the Governors on 26 May 2023 and signed on their behalf by:

Approved by order of the members of the board of Governors on 26 May 2023 and signed on their behalf by:

Mr I Belsham

Page 14

Dame Allan's Schools

(A company limited by guarantee)

Statement of Governors' responsibilities Year ended 31 August 2022

The Governors (who are also the directors of Dame Allan's Schools for the purposes of company law) are responsible for preparing the Governors' report including the strategic report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Governors to prepare financial statements for each financial year. Under company law, the Governors 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 Governors are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles of the Charities SORP (FRS 102);

• make judgments and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The Governors 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.

Page 15

Independent auditor's report to the members of Dame Allan's Schools

Opinion

We have audited the financial statements of Dame Allan's Schools (the 'charitable company') for the year ended 31 August 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' ('United Kingdom Generally Accepted Accounting Practice').

In our opinion the financial statements:

• give a true and fair view of the state of the charitable company's affairs as at 31 August 2022 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's responsibilities for the audit of the financial statements' section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Governors' 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 charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Page 16

Independent auditor's report to the members of Dame Allan's Schools (continued)

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Governors are responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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 Governors' report including the strategic report for the financial year for which the financial statements are prepared is consistent with the financial statements.

• the Governors' report and the strategic report have 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 charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Governors' report including the strategic report.

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

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by me; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of Governors' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of Governors

As explained more fully in the Governors' responsibilities statement, the Governors (who are also the directors of the charitable company for the purposes of company law) 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 Governors 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 Governors are responsible for assessing the charitable company'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 Governors either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Page 17

Independent auditor's report to the members of Dame Allan's Schools (continued)

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identified areas of law and regulations that could reasonably be expected to have a material effect on the financial statements from our general and sector experience and through discussions with the Governors and other management (as required by Auditing Standards) and from inspection of the charitable company's legal correspondence and we discussed with the Governors and other management the policies and procedures regarding compliance with laws and regulations. We have communicated identified laws and regulations throughout our audit team and remained alert to any indications of non-compliance throughout the audit.

Firstly, the charitable company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related charities legislation), and taxation legislation and we have assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly, the charitable company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines and litigation. We identified the following areas as those most likely to have such an effect; health and safety, employment law, data protection, environmental law, safeguarding and child protection and certain aspects of company legislation, recognising the nature of the charitable company's activities. Auditing Standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Governors and other management and inspection of regulatory and legal correspondence, if any. Through these procedures we have not become aware of any actual or suspected noncompliance material to the financial statements.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Page 18

Independent auditor's report to the members of Dame Allan's Schools (continued)

Use of my report

This report is made solely to the charitable company's members, 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 charitable company's members 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 company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Michael Morris FCA FCCA (Senior Statutory Auditor) for and on behalf of UNW LLP, Statutory Auditor Chartered Accountants Newcastle upon Tyne

26 May 2023

Page 19

Dame Allan's Schools

(A company limited by guarantee)

Statement of financial activities (incorporating income and expenditure account) Year ended 31 August 2022

Note Income and endowments from: Donations and legacies 4 School fees 5 Commissions and lettings 6 Investment income Other income 7 Total income and endowments Expenditure on: Raising funds Charitable activities 8 Total expenditure Net (losses)/gains on investments Net income/(expenditure) Transfers between funds 19 Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward	Unrestricted funds 2022 £ 114,819 13,681,479 18,760 20,887 1,577,045 15,412,990 257,596 14,390,906 14,648,502 (41,928) 722,560 473,878 1,196,438 11,136,437 1,196,438 12,332,875	Restricted funds 2022 £ 62,186 - 3,990 20 - 66,196 - 89,554 89,554 (17,058) (40,416) (473,878) (514,294) 782,784 (514,294) 268,490	Endowment funds 2022 £ - - - - - - - - - - - - - 133,474 - 133,474	Total funds 2022 £ 177,005 13,681,479 22,750 20,907 1,577,045 15,479,186 257,596 14,480,460 14,738,056 (58,986) 682,144 - 682,144 12,052,695 682,144 12,734,839	Total funds 2021 £ 243,826 12,126,430 12,246 13,980 730,305
					13,126,787
					230,073 12,429,132
					12,659,205
					97,359 564,941 -
					564,941
					11,487,754 564,941
					12,052,695

The notes on pages 23 to 45 form part of these financial statements.

Page 20

Dame Allan's Schools

(A company limited by guarantee)

Balance sheet At 31 August 2022

Note Fixed assets Tangible assets 12 Investments 13 Current assets Debtors 14 Cash at bank and in hand 23 Creditors: amounts falling due within one year 15 Net current (liabilities)/assets Total assets less current liabilities Creditors: amounts falling due after more than one year 16 Net assets Charitable company funds Endowment funds 19 Restricted funds 19 Unrestricted funds 19 Total funds	467,538 2,411,339 2,878,877 (6,396,083)	2022 £ 18,411,967 2,188,779 20,600,746 (3,517,206) 17,083,540 (4,348,701) 12,734,839 133,474 268,490 12,332,875 12,734,839	576,515 5,317,615 5,894,130 (2,835,653)	2021 £ 12,764,312 744,343 13,508,655 3,058,477 16,567,132 (4,514,437) 12,052,695 133,474 782,784 11,136,437 12,052,695

The financial statements were approved and authorised for issue by the Governors and signed on their behalf by:

Mr I Belsham

(Chair of Governors)

Date: 26 May 2023

Company registered number: 04002372

The notes on pages 23 to 45 form part of these financial statements.

Page 21

Dame Allan's Schools

(A company limited by guarantee)

Statement of cash flows Year ended 31 August 2022

Note Cash flows from operating activities Net cash provided by operating activities 22 Cash flows from investing activities Dividends, interests and rents from investments Purchase of tangible fixed assets Purchase of investments (net) Net cash used in investing activities Cash flows from financing activities Cash inflows from new borrowing Repayments of borrowing Interest paid Net cash provided by/(used in) financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 23	2022 £ 2,667,415 20,907 (6,231,458) (1,503,422) (7,713,973) 2,581,600 (204,122) (237,196) 2,140,282 (2,906,276) 5,317,615 2,411,339	2021 £ 1,438,896 13,980 (646,528) (7,192) (639,740) - (202,574) (227,357) (429,931) 369,225 4,948,390 5,317,615

The notes on pages 23 to 45 form part of these financial statements

Page 22

Dame Allan's Schools

(A company limited by guarantee)

Notes to the financial statements Year ended 31 August 2022

1. General information

Dame Allan's Schools are engaged in the provision of day schools for girls or boys in or near the city of Newcastle upon Tyne. Dame Allan's Schools is a private charitable company incorporated in the United Kingdom and registered in England and Wales. The address of the registered office is Fowberry Crescent, Fenham, Newcastle upon Tyne, NE4 9YJ.

2. Accounting policies

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 periods presented, unless otherwise stated.

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP ('FRS 102') "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)" and the Companies Act 2006.

Dame Allan's Schools meets the definition of a public benefit entity under FRS 102. The financial statements have been prepared under the historic cost convention, with the exception of investments which are included at market value.

The accounts are presented in pounds sterling and are rounded to the nearest pound.

2.2 Company status

The charitable company is a company limited by guarantee. The members of the charitable company are the Governors stated on page 1. In the event of the charitable company being wound up, the liability in respect of the guarantee is limited to £1 per member of the charitable company.

2.3 Going concern

In determining the appropriate basis of preparation of the financial statements, the Governors are required to consider whether the charitable company can continue in operational existence for the foreseeable future, being a period of at least 12 months from the date of signing of these financial statements.

The Governors have performed this assessment, have a reasonable expectation that the charitable company has adequate resource to continue to meet its liabilities as they fall due for the foreseeable future and have prepared the financial statements on a going concern basis which is considered appropriate for the following reasons.

The charitable company recorded a net surplus of income over expenditure in 2022 and has net assets at the period end of £12,734,839 (2021: £12,052,695).

The Governors have prepared profit and cash flow forecasts for a period in excess of 12 months from the date of their approval of these financial statements.

The cash flow forecasts that the Governors have prepared are based on their current best estimate of demand for school places and the charitable company’s expected cost base and show that the charitable company can maintain sufficient financial headroom and operate within the currently available bank facilities and existing covenants for the foresseable future.

Page 23

Dame Allan's Schools

Notes to the financial statements Year ended 31 August 2022

(A company limited by guarantee)

2. Accounting policies (continued)

2.4 Income

All income is recognised when the charitable company has entitlement to the funds, any performance conditions attached to the items of income have been met, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Fees and similar income

Fees receivable and other income are accounted for in the period in which the service is provided. Fees receivable are stated after deducting allowances, scholarships and other remissions granted by the charitable company from its unrestricted funds but include contributions received from restricted funds for scholarships, bursaries and other grants.

Fees that are received in advance of the financial year to which they relate are treated as a creditor and released to income in the financial year to which they subsequently relate.

Voluntary income

Voluntary income is received by way of donations and is included in full in the statement of financial activities when receivable. Grants and donations received for the general purposes of the charitable company are included as unrestricted funds. Grants and donations for activities restricted by the wishes of the donor are taken to restricted funds if these wishes are legally binding on the Governors. Government grants awarded under the Coronavirus Job Retention Scheme are recognised when receivable.

Investment income

Investment income is accounted for in the period in which the charitable company is entitled to receipt. Incoming resources from endowment funds are restricted.

2.5 Expenditure

Expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all cost for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of resources.

Support costs are those costs incurred directly in support of expenditure on the objects of the charitable company, including those incurred in connection with the administration of the charitable company and compliance with constitutional and statutory requirements. They are apportioned against the activities of the charitable company in line with the estimated usage of those costs.

Costs of raising funds are costs incurred in attracting voluntary income and those incurred in trading activities that raise funds.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

Page 24

Dame Allan's Schools

(A company limited by guarantee)

Notes to the financial statements Year ended 31 August 2022

2. Accounting policies (continued)

2.6 Tangible fixed assets and depreciation

Freehold property is included in the financial statements at its original cost including the cost of new equipment and fittings installed at the time of construction.

Tangible fixed assets are capitalised where they have an expected useful life of more than one year and where the original cost of the item exceeds the capitalisation threshold of £2,000. Where a significant number of components or similar items purchased together, costing individually less than the capitalisation threshold and the value of these purchases exceed the capitalisation threshold, then the items are treated as a capital asset.

Expenditure in respect of major capital refurbishment and improvement of buildings is capitalised and reported as property or plant and machinery, depending on its nature. This is appropriate as the expenditure provides a long-term continuing benefit for the charitable company.

The carrying values of tangible fixed assets are reviewed for annually for impairment or sooner when events or changes in circumstances indicate the carrying value may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the statement of financial activities.

Depreciation is provided on all tangible fixed assets, other than assets under construction, at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Depreciation is provided on the following bases:

Freehold land - No depreciation - Freehold buildings 10 - 50 years straight-line - Plant and machinery 3 - 50 years straight-line

2.7 Investments

Investments are included at closing mid-market value at the balance sheet date. Any gain or loss on revaluation is taken to the statement of financial activities.

2.8 Debtors

Trade and other debtors are recognised at the settlement amounts after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.9 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.10 Operating leases

Rentals under operating leases are charged to the statement of financial activities on a straight-line basis over the lease term.

Page 25

Dame Allan's Schools

(A company limited by guarantee)

Notes to the financial statements Year ended 31 August 2022

2. Accounting policies (continued)

2.11 Liabilities

Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the charitable company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

2.12 Financial instruments

The charitable company only enter into basic financial instruments that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, cash and bank balances and loan balances.

All such instruments are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, in which case the transaction is measured at the present value of the future receipts discounted at a market rate of interest. All financial instruments are subsequently carried at amortised cost using the effective interest method.

2.13 Pensions

The charitable company operate two main schemes:

The charitable company participate in the Teachers’ Pension Scheme which is a defined benefit scheme and is for teaching staff only. The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees’ working lives with the charitable compant in such a way that the pension cost is a substantially level percentage of current of future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quadrennial valuations using a prospective unit credit method. The TPS is a multi-employer scheme and there is insufficient information available to use defined benefit accounting. The TPS is therefore treated as a defined contribution scheme for accounting purposes and the contributions recognised in the period to which they relate.

The charitable company also operate personal pension schemes for non-teaching staff. The assets of the scheme are held separately from those of the charitable company in an independently administered fund. The charge to the statement of financial activities is the amount payable in the period.

Page 26

Dame Allan's Schools

(A company limited by guarantee)

Notes to the financial statements Year ended 31 August 2022

2. Accounting policies (continued)

2.14 Fund accounting

Unrestricted funds are available for use at the discretion of the Governors in furtherance of the general objectives of the charitable company and which have not been designated for other purposes. Donations received for the general purposes of the charitable company are included as unrestricted funds.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors of which have been raised by the charitable company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. Donations for activities restricted by the wishes of the donor are taken to “restricted funds” if these wishes are legally binding on the Governors.

Donations required to be retained as capital in accordance with the donor’s wishes are accounted for as “endowments” - permanent or not according to the nature of the restriction.

3. Critical accounting estimates and areas of judgment

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Significant judgments in applying the group's accounting policies

In preparing these financial statements, the governors do not consider there to have been any other significant judgments that were required in the process of applying the charitable company's accounting policies.

Key sources of estimation and uncertainty

Estimates included within these financial statements include depreciation rates, accruals for employment costs (holiday pay), and asset impairments (for example provisions against debtors). None of the estimates made in the preparation of these financial statements are considered to carry significant estimation uncertainty, nor to bear a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year.

4. Income from donations and legacies

Donations collected by the Dame Allan's Development Trust Other donations Government grants	Unrestricted funds 2022 £ - 114,819 - 114,819	Restricted funds 2022 £ 62,186 - 62,186	Total funds 2022 £ - 177,005 -
			177,005

Page 27

Dame Allan's Schools

(A company limited by guarantee)

Notes to the financial statements Year ended 31 August 2022

4. Income from donations and legacies (continued)

Donations collected by the Dame Allan's Development Trust Other donations Government grants	Unrestricted funds 2021 £ 58,066 31,650 90,003 179,719	Restricted funds 2021 £ - 64,107 - 64,107	Total funds 2021 £ 58,066 95,757 90,003
			243,826

5. Fees receivable

	Unrestricted	Total	Total
	funds	funds	funds
	2022	2022	2021
	£	£	£
School fees receivable	13,681,479	13,681,479	12,126,430

The notional value to the charitable company of bursary provision in the period amounted to £1,789,191 (2021: £1,708,061) and £18,156 (2021: £212,704) was provided in relation to COVID-19 hardship support.

6. Income from other trading activities

Income from fundraising events

Commission and lettings income Comission and lettings income	Unrestricted funds 2022 £ 18,760 Unrestricted funds 2021 £ 9,380	Restricted funds 2022 £ 3,990 Restricted funds 2021 £ 2,866	Total funds 2022 £ 22,750
			Total funds 2021 £ 12,246

Page 28

Dame Allan's Schools

(A company limited by guarantee)

Notes to the financial statements Year ended 31 August 2022

7. Other incoming resources

Miscellaneous other income School trip income Income from school bus provision Catering income Total 2022	Unrestricted funds 2022 £ 82,437 726,580 70,801 697,227 1,577,045	Total funds 2022 £ 82,437 726,580 70,801 697,227 1,577,045	Total funds 2021 £ 72,249 102,130 47,639 508,287 730,305

8. Analysis of expenditure by activities

Provision of school services Welfare Premises	Activities undertaken directly 2022 £ 8,610,859 491,414 2,459,641 11,561,914	Support costs 2022 £ 2,231,933 161,272 525,341 2,918,546	Total funds 2022 £ 10,842,792 652,686 2,984,982
			14,480,460

Provision of school services Welfare Premises	Activities undertaken directly 2021 £ 8,180,270 735,678 1,362,151 10,278,099	Support costs 2021 £ 1,526,332 113,797 510,904 2,151,033	Total funds 2021 £ 9,706,602 849,475 1,873,055
			12,429,132

Page 29

Dame Allan's Schools

(A company limited by guarantee)

Notes to the financial statements Year ended 31 August 2022

8. Analysis of expenditure by activities (continued)

Analysis of support costs

Staff costs Governance Advertising, PR & events Insurance Other support costs School bus provision Depreciation Staff costs Governance Advertising, PR and events Insurance Other support costs School bus provision Depreciation	Provision of school services 2022 £ 1,007,870 131,440 182,390 98,300 811,933 - - 2,231,933 Provision of school services 2021 £ 1,055,050 75,604 167,484 56,937 171,257 - - 1,526,332	Welfare 2022 £ - - - - - 161,272 - 161,272 Welfare 2021 £ - - - - - 113,797 - 113,797	Premises 2022 £ - - - - - - 525,341 525,341 Premises 2021 £ - - - - - - 510,904 510,904	Total funds 2022 £ 1,007,870 131,440 182,390 98,300 811,933 161,272 525,341
				2,918,546
				Total funds 2021 £ 1,055,050 75,604 167,484 56,937 171,257 113,797 510,904
				2,151,033

Page 30

Dame Allan's Schools

(A company limited by guarantee)

Notes to the financial statements Year ended 31 August 2022

9. Net income/(expenditure) This is stated after charging: Depreciation on owned assets Bank and loan interest payable 10. Auditor's remuneration Fees payable to the charitable company's auditor for the audit of the charitable company's annual accounts Fees payable to the charitable company's auditor in respect of: • The auditing of accounts of associates of the charitable company • All assurance services not included above • All other non-audit services not included above	2022 £ 525,341 237,196 762,537 2022 £ 8,900 - 550 850	2021 £ 510,904 227,357
		738,261
		2021 £ 8,100 775 500 775

Page 31

Dame Allan's Schools

(A company limited by guarantee)

Notes to the financial statements Year ended 31 August 2022

11. Staff costs

Wages and salaries Social security costs Contribution to defined contribution and defined benefit pension schemes	2022 £ 7,067,035 705,699 1,378,267 9,151,001	2021 £ 6,736,357 628,552 1,347,531
		8,712,440

The average number of persons employed by the charitable company during the year was as follows:

Teaching Academic support Property management Administration	2022 No. 135 31 5 44 215	2021 No. 125 33 5 50
		213

The average headcount expressed as full-time equivalents was:

Teaching Academic support Property management Administration	2022 No. 122 22 5 32 181	2021 No. 115 22 5 33
		175

Page 32

Dame Allan's Schools

(A company limited by guarantee)

Notes to the financial statements Year ended 31 August 2022

11. Staff costs (continued)

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

	2022	2021
	No.	No.
In the band £60,001 - £70,000	3	2
In the band £70,001 - £80,000	3	3
In the band £80,001 - £90,000	-	1
In the band £90,001 - £100,000	1	-
In the band £110,001 - £120,000	-	1
In the band £120,001 - £130,000	1	-

The number of employees in defined contribution schemes was 69 (2021: 74). The number of employees in defined benefit schemes was 131 (2021: 123)

Key management has been determined to be the Governors and 10 (2021: 10) members of the senior management team. Governors receive no remuneration or benefits. The total remuneration of the senior management team excluding employers’ pension contributions and national insurance costs for the year was £752,600 (2021: £729,502)

Page 33

Dame Allan's Schools

(A company limited by guarantee)

Notes to the financial statements Year ended 31 August 2022

12. Tangible fixed assets

Cost or valuation At 1 September 2021 Additions Disposals At 31 August 2022 Depreciation At 1 September 2021 Charge for the year On disposals At 31 August 2022 Net book value At 31 August 2022 At 31 August 2021	Freehold land £ 2,866,850 - - 2,866,850 - - - - 2,866,850 2,866,850	Freehold property £ 12,600,507 79,678 (662,012) 12,018,173 4,189,303 291,226 (626,684) 3,853,845 8,164,328 8,411,204	Plant and machinery Assets under construction £ £ 2,561,972 859,317 383,785 5,767,995 (1,172,594) - 1,773,163 6,627,312 1,935,031 - 234,115 - (1,149,460) - 1,019,686 - 753,477 6,627,312 626,941 859,317	Total £ 18,888,646 6,231,458 (1,834,606) 23,285,498 6,124,334 525,341 (1,776,144) 4,873,531 18,411,967 12,764,312

Page 34

Dame Allan's Schools

(A company limited by guarantee)

Notes to the financial statements Year ended 31 August 2022

13. Fixed asset investments

Cost or valuation At 1 September 2021 Additions Disposals Revaluations Transfers between classes At 31 August 2022 Net book value At 31 August 2022 At 31 August 2021 14. Debtors Fees owing from parents Amounts owed by related parties Other debtors Prepayments and accrued income	Listed securities £ 589,898 - (65,351) (55,298) 1,423,713 1,892,962 1,892,962 589,898	Unlisted securities £ 134,740 37 - (3,688) - 131,089 131,089 134,740		Cash held within portfolio £ 19,705 1,568,736 - - (1,423,713) 164,728 164,728 19,705 2022 £ 164,879 - 2,261 300,398		Total £ 744,343 1,568,773 (65,351) (58,986) - 2,188,779 2,188,779 744,343 2021 £ 140,413 166,406 3,768 265,928
				467,538		576,515

No amounts (2021: £166,406) were owing from Dame Allan's Development Trust ('DADT') in relation to monies raised to date for the bursary appeal, following Dame Allan's Schools becoming the sole corporate trustee in the year and becoming linked charities through the Charity Commission.

Page 35

Dame Allan's Schools

(A company limited by guarantee)

Notes to the financial statements Year ended 31 August 2022

15. Creditors: amounts falling due within one year

Bank loans Trade creditors Other taxation and social security Other creditors Accruals and deferred income Payments received in advance	2022 £ 2,808,730 476,637 345,632 4,559 1,179,202 1,581,323 6,396,083	2021 £ 211,854 416,385 326,518 - 447,865 1,433,031
		2,835,653

16. Creditors: amounts falling due after more than one year

Bank loans Accruals and deferred income	2022 £ 4,057,686 291,015 4,348,701	2021 £ 4,277,084 237,353
		4,514,437

17. Deferred income

Deferred income totals £443,993 (2021: £385,682) and relates to amounts received in advance from parents for trips and other events of £136,118 (2021: £80,837) and admission deposits received of £307,875 (2021: £304,845).

Page 36

Dame Allan's Schools

(A company limited by guarantee)

Notes to the financial statements Year ended 31 August 2022

18. Bank and other loans

Due within one year Between one and five years In five years or more	2022 £ 330,394 1,414,611 5,121,411 6,866,416	2021 £ 211,854 955,457 3,321,627
		4,488,938

A mortgage loan of £4,100,000 was agreed in July 2011 with Lloyds Bank plc, with the principal repayable in monthly instalments from October 2013 until September 2036. Interest is charged at a fixed rate of 5.837% per annum. The loan is secured on the freehold property of the charitable company by way of a first legal charge and an unlimited debenture.

The charitable company has also entered into a variable rate loan agreement with Lloyds Bank plc up to the sum of £1,900,000. Interest is charged at Base Rate plus an interest margin of 2.55%, currently 7.05% per annum (2021: 2.65%). Principal repayments began in May 2014 and continue until January 2036. The loan is secured on the freehold land and buildings of the charitable company by way of a first legal charge and an unlimited debenture.

During the year up to 31 August 2022, the Schools drew down funds totalling £2,581,600 from a development loan with Lloyds Bank plc. As at the year end these funds were repayable on demand. After the year end, further funds were received and an amount of £4,931,219 was converted into a 25 year variable rate loan with the principal repayable in monthly instalments from March 2023 until February 2048. Interest is charged at Base Rate plus an interest margin of 3.3%, currently 7.8% per annum.

Page 37

Dame Allan's Schools

(A company limited by guarantee)

Notes to the financial statements Year ended 31 August 2022

19. Statement of funds Statement of funds - Unrestricted funds Schools general fund Endowment funds Sinking fund no. 5 McClintock scholarship Restricted funds Prize fund EB Wood memorial Fund Bursary fund (including Marks Foundation) Design and Technology Centre Sir Walter Plummer Scholarship Trust The Lord Elliot Fund Nixon Kaer Bursary Fund Ruth Claydon Memorial Fund Jeanette Hutt Debating Prize Goodacre Hardship Fund Total of funds	current year Balance at 1 September 2021 £ 11,136,437 124,002 9,472 133,474 131,706 34,244 495,011 58,122 4,508 6,905 1,456 2,832 3,000 45,000 782,784 12,052,695	Income £ 15,412,990 - - - - 3,990 62,186 - 15 - 5 - - - 66,196 15,479,186	Expenditure £ (14,648,502) - - - - (2,094) (70,340) (17,108) - - - - (12) - (89,554) (14,738,056)	Transfers in/out £ 473,878 - - - - - (473,878) - - - - - - - (473,878) -	Gains/ (Losses) £ (41,928) - - - (4,079) - (12,979) - - - - - - - (17,058) (58,986)	Balance at 31 August 2022 £ 12,332,875
						124,002 9,472
						133,474
						127,627 36,140 - 41,014 4,523 6,905 1,461 2,832 2,988 45,000
						268,490
						12,734,839

Page 38

Dame Allan's Schools

(A company limited by guarantee)

Notes to the financial statements Year ended 31 August 2022

19. Statement of funds (continued) Statement of funds - prior year Balance at 1 September 2020 £ Unrestricted funds Schools general fund 10,654,912 Endowment funds Sinking fund no. 5 124,002 McClintock scholarship 9,472 133,474 Restricted funds Prize fund 116,015 EB Wood memorial Fund 36,045 Music scholarship fund 605 Bursary fund (including Marks Foundation) 455,773 Design and Technology Centre 75,229 Sir Walter Plummer Scholarship Trust 4,508 The Lord Elliot Fund 6,905 Nixon Kaer Bursary Fund 1,456 Ruth Claydon Memorial Fund 2,832 Jeanette Hutt Debating Prize - Goodacre Hardship Fund - 699,368 Total of funds 11,487,754	Income £ 13,059,814 - - - 2,000 2,866 - 14,107 - - - - - 3,000 45,000 66,973 13,126,787	Expenditure £ (12,625,655) - - - - (4,667) (605) (11,171) (17,107) - - - - - - (33,550) (12,659,205)	Gains/ (Losses) £ 47,366 - - - 13,691 - - 36,302 - - - - - - - 49,993 97,359	Balance at 31 August 2021 £ 11,136,437
				124,002 9,472
				133,474
				131,706 34,244 - 495,011 58,122 4,508 6,905 1,456 2,832 3,000 45,000
				782,784
				12,052,695

Page 39

Dame Allan's Schools

(A company limited by guarantee)

Notes to the financial statements Year ended 31 August 2022

Unrestricted general funds

Unrestricted general funds may be used for any of the charitable objects of the charitable company.

Endowment funds

Endowment funds are all permanent and include the Sinking fund no. 5 and the McClintock Scholarship.

Restricted funds

The Prize Funds are used to fund prizes and awards, amounts awarded in the period total £nil (2021: £2,000).

The EB Wood Memorial Fund is represented by two timeshares in the Lake District, the income from which is used to fund educational trips.

The Bursary fund (including the Marks Foundation) was a gift of investments and cash from the Dame Allan’s Development Trust which is to be used to fund scholarships, bursaries and appeals. The fund is considered to have been fully used up and therefore has been transferred to restricted funds.

The Design and Technology Centre fund relates to donations received to build and equip the new centre built in the summer of 2015.

The Sir Walter Plummer Scholarship Trust was transferred from the Dame Allan’s Schools’ Trust. The fund is to be applied to provide scholarships to the Schools for boys who are members of the Church of England and who have preferably attended the Schools for two years and also been choristers at St Peter’s Church.

The Lord Elliott Fund was transferred from the Dame Allan’s Schools’ Trust. The fund is to be applied to a boy or girl at the Schools at the discretion of the Principal.

The Nixon Kaer Bursary Fund was transferred from the Dame Allan’s Schools’ Trust. The fund is to be applied to help students in case of need across the Schools.

The Ruth Claydon Memorial Fund was transferred from the Dame Allan’s Schools’ Trust. The fund was established to provide funds annually for prizes for conversational or spoken French. The principal beneficiaries are two maintained sector schools in Kent, any surplus to be awarded at the discretion of the Schools.

The Goodacre Hardship Fund represents donations received from the Goodacre Trust to be used in future to support those families in school suffering temporary financial hardship to enable fees to be paid during this time.

Linked charities

The charitable company is the trustee of, or is required to manage, the Dame Allan's Development Trust ('DADT') which has been linked by the Charity Commission for administration and reporting purposes.

Page 40

Dame Allan's Schools

(A company limited by guarantee)

Notes to the financial statements Year ended 31 August 2022

20. Summary of funds

Summary of funds - current year

General funds Endowment funds Restricted funds	Balance at 1 September 2021 £ 11,136,437 133,474 782,784 12,052,695	Income £ 15,412,990 - 66,196 15,479,186	Expenditure £ (14,648,502) - (89,554) (14,738,056)	Transfers in/out £ 473,878 - (473,878) -	Gains/ (Losses) £ (41,928) - (17,058) (58,986)	Balance at 31 August 2022 £ 12,332,875 133,474 268,490
						12,734,839

Summary of funds - prior year

General funds Endowment funds Restricted funds	Balance at 1 September 2020 £ 10,654,912 133,474 699,368 11,487,754	Income £ 13,059,814 - 66,973 13,126,787	Expenditure £ (12,625,655) - (33,550) (12,659,205)	Gains/ (Losses) £ 47,366 - 49,993 97,359	Balance at 31 August 2021 £ 11,136,437 133,474 782,784
					12,052,695

21. Analysis of net assets between funds Analysis of net assets between funds - current year

Unrestricted funds 2022 £ Tangible fixed assets 18,370,952 Fixed asset investments 2,045,432 Current assets 2,661,275 Creditors due within one year (6,396,083) Creditors due in more than one year (4,348,701) Total 12,332,875	Restricted funds 2022 £ 41,015 143,347 84,128 - - 268,490	Endowment funds 2022 £ - - 133,474 - - 133,474	Total funds 2022 £ 18,411,967 2,188,779 2,878,877 (6,396,083) (4,348,701) 12,734,839

Page 41

Dame Allan's Schools

(A company limited by guarantee)

Notes to the financial statements Year ended 31 August 2022

21. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year

Tangible fixed assets Fixed asset investments Current assets Creditors due within one year Creditors due in more than one year Total	Unrestricted funds 2021 £ 12,706,190 470,759 5,309,578 (2,835,653) (4,514,437) 11,136,437	Restricted funds 2021 £ 58,122 273,584 451,078 - - 782,784	Endowment funds 2021 £ - - 133,474 - - 133,474	Total funds 2021 £ 12,764,312 744,343 5,894,130 (2,835,653) (4,514,437) 12,052,695

22. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the year (as per Statement of Financial Activities) Adjustments for: Depreciation charges Losses/(gains) on investments Dividends, interests and rents from investments (net) Loss on the sale of fixed assets (Increase)/decrease in debtors Increase in creditors Interest paid Net cash provided by operating activities	2022 £ 682,144 525,341 58,986 (20,907) 58,462 108,977 1,017,216 237,196 2,667,415	2021 £ 564,941 510,904 (97,359) (13,980) - (174,860) 421,893 227,357 1,438,896

Page 42

Dame Allan's Schools

(A company limited by guarantee)

Notes to the financial statements Year ended 31 August 2022

23. Analysis of cash and cash equivalents

Cash in hand Notice deposits (less than 3 months) COIF cash funds Total cash and cash equivalents	2022 £ 2,356,625 37,718 16,996 2,411,339	2021 £ 3,260,768 2,037,131 19,716 5,317,615

24. Analysis of changes in net debt Cash at bank and in hand Debt due within 1 year Debt due after 1 year	At 1 September 2021 £ 5,317,615 (211,854) (4,277,084) 828,677	Cash flows £ (2,906,276) (2,377,478) - (5,283,754)	Other non- cash changes At 31 August 2022 £ £ - 2,411,339 (219,398) (2,808,730) 219,398 (4,057,686) - (4,455,077)

25.	Capital commitments
		2022	2021
		£	£
	Contracted for but not provided in these financial statements
	Construction of North End development	539,652	5,229,831

Page 43

Dame Allan's Schools

(A company limited by guarantee)

Notes to the financial statements Year ended 31 August 2022

26. Pensions

The charitable company's employees belong to two principal pension schemes, the Teachers’ Pension Scheme (England and Wales) for teaching staff and a personal pension scheme for support staff with Aegon. The total pension cost for the period was £1,378,267 (2021: £1,347,531).

The Teachers’ Pension Scheme ('TPS')

The charitable company participate in the Teachers’ Pension Scheme for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £1,267,153 (2021: £1,238,912) and at the year-end £152,034 (2021: £144,363) was accrued in respect of contributions to this scheme.

Valuation of the Teachers' Pension Scheme

The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2016. The valuation report was published by the Department for Education on 5 March 2019.

The key elements of the valuation and subsequent consultation are:

• employer contribution rates set at 23.68% of pensionable pay (including a 0.08% administration levy)

• total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service to the effective date of £218,100 million and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £196,100 million, giving a notional past service deficit of £22,000 million

• the SCAPE rate, set by HMT, is used to determine the notional investment return. The current SCAPE rate is 2.4% above the rate of CPI, assumed real rate of return is 2.4% in excess of prices and 2% in excess of earnings. The rate of real earnings growth is assumed to be 2.2%. The assumed nominal rate of return including earnings growth is 4.45%.

The next valuation result is due to be implemented from 1 April 2024.

A copy of the valuation report and supporting documentation is on the Teachers' Pensions website.

Under the definitions set out in FRS 102, the TPS is an unfunded multi-employer pension scheme. The charitable company has accounted for its contributions to the scheme as if it were a defined contribution scheme. The charitable company has set out above the information available on the scheme.

Support staff pension schemes

The charitable company operate personal pension schemes for support staff with Aegon (formerly Scottish Equitable) and the Pensions Trust.

From July 2014 the charitable company has been required to auto-enrol all eligible staff into a qualifying work place pension scheme and make contributions to such a scheme. Aegon, who operate the existing personal pension scheme for support staff, has also provided this qualifying scheme.

The pension charge for the period includes contributions payable to the non-teaching pension scheme of £111,114 (2021: £108,619). At the year-end £14,065 (2021: £16,143) was accrued in respect of contributions to this scheme.

Page 44

Dame Allan's Schools

(A company limited by guarantee)

Notes to the financial statements Year ended 31 August 2022

27. Operating lease commitments

At 31 August 2022 the charitable company had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year Later than 1 year and not later than 5 years	2022 £ 19,258 40,728 59,986	2021 £ 23,661 52,821
		76,482

28. Other financial commitments

The charitable company has entered into an internal painting maintenance contract. The future costs payable under the contract are as follows:

Not later than 1 year	2022 £ - -	2021 £ 10,255
		10,255

29. Limited liability

The charitable company is limited by guarantee. Each member undertakes to contribute to the assets of the charitable company, in the event of the charitable company being wound up while he or she is a member, for the debts and liabilities of the charitable company and of the costs of winding up, such amount as may be required not exceeding one pound.

30. Related party transactions

£nil (2021: £166,406) is due from Dame Allan's Development Trust ("DADT"), a connected charity of Dame Allan's Schools. The balance has mainly arisen due to the payment of monies raised to date for the bursary appeal, to the charitable company. The DADT had a change of trustees in the year and now has 1 corporate trustee, Dame Allan's Schools, and therefore are officially linked charities through the Charity Commission.

Page 45