Reglst•red Charlty Number. 1086829 Reglstsred Company Numb•r: 4193948 THE DEAN CLOSE FOUNDATION ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
THE DEAN CLOSE FOUNDATION CONTENTS FOR THE YEAR ENDED 31 AUGUST 2021 REPORTS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 Page Trustees, arKI advisers Reptri of the Trustees 4-17 IrKlependent Auditorfs Rept 18-21 Consdidated statement of finala1 xtpiibes 22 Balae sheets 23 Consdidated cash fl( statement 24 Notes to the finaal Statents 25-50
' THE DEAN CLOSE FOUNDATION TRUSTEES, OFFICERS AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2021 The ThrKtors of the Company, who are referred to throughout these finarla1 statem&nls as the Trnslees, are Ilsled behy4V. along with the Members of the Company and the main sub<omrnittee. Pre8ld•nt The Lord Ribeiro Councll of M•mb•rs The Rev'd M Allen The Rev'd S Austen 8Sc. w fp.Min "A R 8ird. 08E. BA {retired 23 January 2021 } M Bowen H Bradby 8A. MA S 8ullingham MSC. Bsc R Byrd. FCA. FCCA Mrs K A Carden BA. MPhil M J Carfvrtight. BA. FCA The Rev'd J Chaffey. MA. BA "Mrs S Clayton The Rev'd R M Coombs. 8Sc. MA Mrs H S L Dalty, BA B DaVS 08E Mrs R Dick. BA ACA "Mrs C Dowler CSSDrew.MA J Drew. Meng l A Duffin. 8Com. FCA Mrs R Eden S Foster D Goode. MA. MPhil J Hall B Harding, MBA {apF(¥nted 23 January 2021) The Earl of Harrowby, MA, FRICS (retired 23 January 2021) Dr J Haynes, BM Bch. MA FRCPsych Mrs T Haynes, 8Sc {Hons) lapwinled 1 Awil 2021) 'R Hilldick-smrth. MEng. CEng. IMechE (appointed 1 Wil 20211 Mrs A Hillman. &4 lapp)inted 1 April 20211 Mrs S L Hirst. BEd 'H J Hodgkins. ACI8 (retired 23 January 2021) S W Holliday. MA (8pwnled 18 September 2021) AJHunl "The Rev'd Dr J M Holmes, MA, Pho, VetMB. MRCVS AJudge 'Mrs F Knight BA R Lewis. Bsc AVM R Lock, CBE. Bsc The Rev'd R Mackay Mrs A Marsden, Bsc MA P Maynard G McDonald. B.Comm B. Acc 'D Mullins, BSC, FCA The Rev'd D J S Munro. W MBA (retired 23 Jawary 20211 Mrs P G Napier B Nicholas. MA {apwnled 1 April 2021 } "Mrs C Pack. MRICS (appointed 23 Janu 2021 } N Patterson 'M Philip-Scensen Mrs K Pinsent Dr A Porter 'Lord Ribeiro, kt, CBE. FRCS. FRCSEd
THE DEAN CLOSE FOUNDATION TRUSTEES, OFFICERS AND ADVISERS ICONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021 Councll of Members (contlnuod) Mrs K RidirKJ. LLB Dr C Roberts. BA. BM 8Ch. FRCA F J Shaw. MA Msc. CEng. C&1 P Sifvesler, ACI8, BA M P Smith, MA Spencer (appointed 23 January 2021 } Mrs J Sykes, BA 'Lt. Col E T Taylor. BA RA S Thomas. BA. LLM S Thoma5. BA. LL8 'J Townsend. MA The Rev'd Canon Dr P R Wiliams. CSU. DL Rl Rev'd Paul Williams Board of Trusteas S Bullingham, MSC. Bsc Mrs K A Carden. 8A.. MPhil., {Chaimian} The Rev'd J Chaffey. MA. BA The Rev'd R M Coombs, BSC. MA Mrs H S L Dalty, BA CSSDrew.MA l A Duffin, Bcom, FCA (VKe Chaiman) (retired 18 Felyuary 2021) Mrs S L Hirsl, BEd S W Holliday, MA (appcinted 18 Septefrthr 2021) Mrs A Marsden, BSC, MA G McDonald. B.Comm B. Acc Mrs K Riding. LLB {retired 30 Awil 2021) M P Smith. MA lapwnted Chairman 18 FetffU 2021) 'Lt. Col E T Taykn, BA. IiA Flnance & General Purpo•es C¢)mmitto• S Bullingham. MSC, Bsc Mrs K A Carden, MPhil, BA Mrs H Dalty, BA l A Duffin, Bcom. FCA {Treasurer) Iretred 18 Felxuary 2021) G McDonald, B.Comm B. Acc M P Smilh, MA lappjinted Treasu 18 February 2021) ' Old Decanian
' THE DEAN CLOSE FOUNDATION TRUSTEES. OFFICERS AND ADVISERS ICONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021 Status and Admlnlstratlon The Dean Close Foundation (r&ferred to as the Charity or th8 Foundation Ihrough(MJt these financial 5tatemenlsl is a registered charitable company that inGorporales the charitable institution originalty founded in 1886. Its charity number is 1086829. ils company number is 04193948, and Ils Articles of Asso¢ialion were adopted on 4th April 2(K118Thl nM)st recenty amended 28 May 2021. The liabilty of the Members 15 limited by guarantee. Clerk to Iho Trusteos A P Bovth M8A. FCIB, DipFS Treasurer l A Duffin. Bcom. FCA (retired 18 February 2021) M P Smith. MA (appointed 18 February 2021) Company Secretary Madeley Reglstergd Offlco and Prlnclpal Address Shelbume Road Chellenham GkMKeslersh*e. GL516HE Banker HSBC Bank p 2 The Promenade Cheltenham Gk)uce5tershre. GL50 1LR Sollcllors Veale Wasbrough Vvzards LLP NaoW Quay House Narrow auay Bristol, BS1 4QA Harrison Clark Rerby8 Limbted Ellentorough House Welliroton Street Chdtenham Gknucestershe. GL50 1YD Indepgndont Audltor Crthve U.K. LLP 4th Floor St James House St James Square Cheltenham GlouCestshr8, GL50 3PR Insur•r Zurth Insura plc The Zurich Centre 3000 Parkway Whileley Fareham Hampshi. P015 7JZ Policy No. KSC-252038-7703 (includes Empwrs. Liabilty and Publt Liabilty) Investment Manager Rathbone Investsn8nt Management 1 CUOn Streel London. W1J 5FB
THE DEAN CLOSE FOUNDATION ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021 The Trustees of The Dean Close Fthbndation present their Annual Repwyt for the year ended 31st August 2021 under the Charities AGt 2011 and the Companies Act 20c6. thus irlUding the Dire¢tors' RetKwt and Strategic Rep(xt urbjer the 2CK56 A¢t. togeth with the audited financial ststements ts the year. DIRECTORS. REPORT COUNCIL AND CHARITY TRUSTEES The Members of the Company, krwjwn a5 the Council. {detaiL% as disclosed on pages 1 and 2) are reswnsible for the electr)n of the DtOrS. who are referred to througtmwl this repNt as the Trustees. The Membws also recgive the Annual Rewt and Accounts at the AGM each year. The Foundation's constitution WOVFdes for up lo fifteen Trustees. drawn from the CounThl, who retre by rotstion after four years and are eligible to se0 up lo a maximum of ttKee terms of four years. The TnJste8s delermne the ChariW$ $trategr direction aThl ffThiitor its operational perImr£ closety. providing the Warden. Bursar. Heads and Senior Management Teams wrth direction and supwt as appropriate. The Board meets four times each year. The w(xk of overseeing the implernentstn of Board policies and derAsKJns is carried (Jt in large part by the Finance and General Purposes Committee IF&GPCI which meets at least six times per year. Specificalty. the F&GPC scrulinises all budgets. management and ststutw accounts. tmtsiness plans and major capital proposals. before these are 5ubrrilled lo the Board for apwoval. Following the annual review of Governare. it was agreed to retain the exlsting committee structure. The olhor win¢ipal Board comittees are: the Foundation Estates Planning Committee. which meets at least every 2 ThK)nths lo dis¢uss the kinger- teryn strategy for tho estats aThl manageThnt of lar9er ca1 projects. the Curriculum Development Comnmttee. whh offers Strateg guidance on luture academi¢ deVeloentS within the Foundation. within and across the scFM)ols. the Remuneration Committee. whth sets the Sal aThl emluments for th8 Warden. Bursar, Heads and Senior Management Teaftts. the Nominalions Committee, which is resF)nsible sLttesSi FlanniThJ for th the Council of Members and Board of Trustees. the Health and Safety Committee. whh meets temty wilh Board psentat)n. the Safeguarding Comrnittee. whkh meets at least lernty with Board reFfesentation. the CorSSionS WorkiNJ Party. which meets at least twKe each year to strutinise pc4icl8s and resourcing of schsarship arK1 bursary awards and other ¢eSs$. the DeVelOprnt Comnttee. whh is responsible for fun(kraisirrfJ and other development Flans. The day-to-day leadttship and managenl of the FouThJaiion is delegaled to the following.. Warden Headmaster Dean Close Senicy School Headmaster Dean Close Preparatory School Headmistress Dean Close Pr&Preparalory SCI1 Acting Headmaster Dean Ck)se Sl John's Scho)I Headmaster Dean Close St John's School Headmaster Dean Close Airthrie School Bursar and Clerk to the TnJslees Mrs E L C Taylor Mr B Salisbury Mr P Moss Dr C A Shelley Mr J Oobbie (resigned 31 December 2020) Mr N Thrler lappoinled 1 January 2021) Mr J tk4)bie (appointed 5 Juty 2021) trAPBow¢h
THE DEAN CLOSE FOUNDATION ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021 CONTINUED) Charity G0manCe Code The Trustees have taken note of the seven pfirlpleS set CAEI within th& Cfxle and recommended pr8CtiGe. Whilst the Charity has t as yel, fom)alty adopt1 the Cc¥le. Trustees appty the Code's recommendgd pra¢ti¢e$ and more detailed infommtion as lo how this has been d8 B included within this Annual Report. stakelK4der Engwmonf and Secl#)n 172 (IJ Statement The Trustees. as DffectOTS, must act in aCCdare wilh a set of gen¥al duties. These duties are detailed in Section 172 (1) of the compan kt 2(M)6 which is summarised as follows.. 'A Dreclor of a Company must act in the way helshe o)nsiders. in grmxl faith, would be most likely lo promote the suecess of the Company tt)e benefft of its Meffl as a Whe. and in doiThJ so have regard (amongst other mattwsl lo= The likely eonsequences of any deCiSn in the long temi The interests of the Company's emptyees The need to foster the C(YnpanS business relatM)nships wilh suppliers. custor$ and others The impact of the Company's operatM)ns on the communty aThl the environment The desirabtlty of the Company maintaining a reputst#)n for high stsndards of business conduct, and The need lo a¢t fairfy as belween members of the Conyany.. The Trustees consKler that they have fulled their duties in accordance with section 172111 of the Companies Acl 2006 arKI have acted in a way in whth is nK)st likely to promote the success ofthe Foundation for the benefit of ils stakeholders as a wlKtrle in Ihe following ways= Pu Boarding arKI day pupils alike benefrt from the Found8tMin foeussing on iThYividual development and helping to nurture each chikl's StrehS and talents within a caring and secure family environment. Pupils are actively eOuraged lo offer comments and suggestions on the operatH)n of the Foundation through the SchcK)I Council and these are considered in decisions made by the Sen1 Leadership Teams. The f(S on pupil outcome$ remained pararnount during the enforced closure of the school site and the subsequent move to renK)te leaming. recognising Ihe challenges faced by pupils during this lockdown. Staff worked with individuals and groups of pupils lo athjress any cotxems and organised online events designed to maintain swial interaction and pupil motivalM)n. Em lo The Foundation recogni8es that the qualtties and skills of its ernpknyees and the commitment of tts staff plays a major role in its success. Weekly briefings keep staff infixmed of school wide matters of interest and there are many opportunities for stsff training and devekjpment. Staff weltbeing and emotional health has been a parbcular area of attentn. especially as many staff returned to the workplace in September 2020 fkn9 an exlended per off srte either due lo working from home or having been fvrtoughed.
THE DEAN CLOSE FOUNDATION ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021 (CONTINUED) stake1Kder Engagement and S8¢lM)n 172 (1) Statement (conbnued) Parents The Foundation conlinues to ensure that it is in regular communication and engages with ils parent body. arKJ a weekly summary of n$ and events is emailed lo them. Addilionalty. a number of virtual events during the COVID lockdown pei including general UFMJates. assemblies and Speech Day were made availablg rernolely lo parents io enable them to feel part of thy)I lrfe. The Foundation also carried out a number of parental surveys. in particular lo gain feedback from parents to help further develop its remote learning delivery. The Foundation is proud of its place within the k)cal communty endeavours to offer support and assistance where possible by making available many of its facilities at below commercial rates.11 also inviles k)cal schools to participale in Specif sports arKI other events and to share varKNJs facilitles. Recruitment and Remuneralion of Senior M8napmont ReThJneration is set by the Remunwaion Coffthittee. with the polw Obl11¥e of FVidIng appropriate centNes to encourage enhanced perfmrte ar#J of rewarding fairty and responsibly individual contributions lo the Foundation's success. The approwateness and relevance of the rernuneratn polry is reviewed annually, including refererKe to comparisons with other iThJependent schwls to ensure that the Foundation remains sensitive to the iKo&Jer issues of pay and errtYMent conditicS elsewhere. The FouTrJalion aims to recruit, sU.e¢l to exwence. at the bwer to medium wnt within a band, providing scope for rewarding excellence. DelNery of the Fourxlation's charitable vision and purpose is primarily dependent on its key management person1 arKI staff costs are Ihe largest element of our charitable expenditure. Recruitment and Training of Tntstees The Nominations Cornmittee makes r0MMendat for the appointment of Members al Trustees. Candidates are selected wth regard to their availability. e1Ibl1ty. conNnitmenl. specialist skills and Christian standing. and are appointed otherwise al a General Meeting of the Members. Al new Members receive an inductM)n pack of rekvant drKuments ouuiniry their resFK)nsibilities and attend an induction wcrtshop conducted by the Chaiman. Warden and Bursar. al whh the FouThJalion's organiSat)n and policy are discussed and the responsikn'lities and duties of Members aThJ Tnjstees are ful explained. New Trustees also receive IThJuclts training provided by efv Ihe Foundatw)n's solKitors or an indep8ndent external body. Trustees atterKJ a range of extemal training days a schedul8 kept by the Bursar. AdditKJnally, Trustees receive brielings from the Bursar armj one 8oard meetitYJ per year is FKimarity d8VOted to training on gOvWnare issues and matters of cUrt 0)rn. Leg81 Stwcture olthe Foundalion and Definilion Th8 Charity has three whollyo4vned Whar[tsb subsidiaries. Dean Close Services Limited {DCSL). Dean Close Nurseries Limited {DCNLI and Nursery Childcare Sees (UK) Limited INCSLI. the latter of whKh has not Irade(I since 1 September 2017. On 28 h41ri12020. an appIallOn was madg lo dissolve NCSL and the company was duty (Jb$so on 6 October 2020. The results of the subsidiaries are includad in Note 3 of the Financial Staterrents. The annual profils of all subsvjiaries are donated lo the Foundat under the Gift Scheffo. Th& trading activities of Ihe subsKJiarie$ comwise lettirKJ of the FOundatn facilities vthen not in use by the Foundation. the provision of courses, revenue from the Ffyjndation shops and the operation of nurseri&s. The subsKJiaries' aims, obieclives aThJ athIevnts are covered in the iel8vant wtions of this TrF4yL Ihhen this rewt refers to 'Group'. il means the combined finarKes of the Charity (The Dean CkJ$e FouTrJalion) and its three subsidiaries. DCSL aTrJ DCNL and NCSL
THE DEAN CLOSE FOUNDATION ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021 {CONTINUED) OBJECTS, AIMS AND OBJECTIVES When reviewing the aim$ and objectNes of th8 FourKlation and in planning its future actNiti8S the Trustees consider, in partrular, its charitable obiectives and Strategic Plan. Chantable Objects The Charity's Objects. as sel out in its Art185. are the advarement of educatK>n. including the provision of schooling for children based firmty upon Christian evangelul principles and the provis of assistance with the resources available lo the Foundat the edUcatm of children with parents of limited resources. The Charity also has various restricted reserv8s enabling it to award rjest scholarships, bursaries and prizes. as well as a nureT of un-endowed trust fuThJs hekl for wial purposes in connection with the development of the FouTrJalion's fa1411&5. MISS statement The Charity's misston is to provide the necessary educatton and aprffopriale trainiThJ to enable chlldren and young people lo flourish arml to achieve their FQtential as individuals. and thereby to ensure that as adu5ts tw will be confident and swcessful members of society arKI efflIve conlribulors to il. Intended impact Within its charitabte objects. the Charitys intention is to first dass chiklcare in our nurserie$ and a first-class education through strcKo academ turt#)n and by developing broader skills that enable every pupil to realise his or potential to the full. This involves eryhasis on ctrcurricular activities through academic. sportirg, artist, team building and scKial skills. as well as encouraging spiritual awareness and self-refleclion. This approach builds self-confyjence and life skills in our puts and inculcates a desre to leam and a willingness to contribute to the w#ler commnty whiLst at SCI1 arml in later lrfe. Aims The aim of the Charity is to wovK4e higfvqualty education ¢are fc* day and boar(Jing pupils from Nursery (age approximately 6 months) to Upptr Sixlh level118 years). During the year under review, this wa$ carried out by 5 nursenes and 4 school$ operab'ng in Chellenham, Gloucester, Chepstow and Newport. The nurseries and s¢hcol$ We overseen iointty by the Trustees. through the Warden ICEOI and Bursar. Most of the children from Dean Ck)se Ftreparal<xy SC1 enter the Senior School and the vast majority of those leaving the School after A LeveLs have histor1 sought entry to UnfV8rsities and olher higher education establishments. Pupils from Dean Ck)se St John's SchrM)l enter a variety of different senior schools at 13, including Dean Cthe Senior SchcM)l. In ajdition to the aCadern life of the Schools, pupils, ccurrICUlar aclmties include an exlensNe range of musul. drama and artistic activities a$ well as sports trainiNJ. with many teams achieving success at county arKI national level. The needs of the wider community are addressed through an imaginalNe and widLwanging Community Action and Partnerships programme and the FowKlation makes many of sis facilities available to the ¢ommunty and to k1 charitses at reduced rates. Christianity is al the heart of Ihe Charty ix)th in its aiThKs armj and in practic8, in regular formal services and voluntary Christian Union groups, bible Study classes and an actNe Chaplaincy. The Foundation's educational polw is built UFth tls Christian principles and Trustees aim to ensure that pupils of all faith$ and none are erVraged to consider their own r8sponse lo questions of faith based upon a clear understanding of the Christian messa3e. The Charity has defined its and Values. based on the principles of biblical Christianty, and these ar8 embedded in every aSpt of its activities. The overarching aim is Flourishing, and the three kwi values are Courage, Love and Contribution. The CharY aims to mainiain a wann famity atTrphere and a very hh standard of pastoral care f al members of its community.
THE DEAN CLOSE FOUNDATION ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021 CONTINUED) ObJeGfv8s To make ex¢dlent Fovision for te8Lhing and leaming. ensuring that the curriculum is giving an outstanding preParatn for life after school. To crffttinue to improve the qualty of FtyJThlation facilities. To recruit. retain and develop excellent staff. b)th tea¢hing and nwpteaching. To maintain a iyoad ar¥J ap[Oal8 rar¥Je and variety of Covcurricular actNilies for all children and young people and lo womte and develop spcKting. mUsal. drarnat aThl artist achievement across the FourallOn. To sustain pupil recruitrnent in the face of orvJoing drfficutt e¢onryrN¢ clrcumstances and to continue to widen access lo Dean Close by the FffjvlSJrI of means-lesled assista8 toth for new applicants and in hardship cases affecting existing pupils. To develop further the Charity's cornmifvt to partnenty. k¢alty. nationally and intemationally. Strategies lo acbwg Ihe ObJectN8s Recruilment. ir¥Juclv)n. apwaisal. mentoring and training of staff to ensure they are providing the very best qualty of exFerience for children and young people. inside arMJ outside the clasSr)m. Cortstsnt review arml rnnovalion within the currKulum and Co<urrulrn. ensuring the needs of children and young people are mel with a keen eye on the future requwements of universities. employment and wider siety. Employment of hw3hty qualified. alist slaff lo MataIn skndard$ of $Fy( mu$r. and drama. Cwlinued YNe$lment in Fourmlation facilit5 t1you orooiw maintenarKe and through selected refurbi$hment and enharrnenI of faalities. partlartY in boar(ling. Fundraising lo sUppt three key areas of d8vebpffnt: canpus. c0rnrnty and curriculum. The aints and ofyectwes sel for the Charitys subshJiaries are to donate Fyoffts to facilitate tho achievement of the Charity's aink8 and ObltIveS as above. EMPLOYEE INFORMATION A Staff Employment HandbC i8 in place rnbers of leaching and SUPFKWt staff; a number of important mea$ure$, including the develoFMnt of a universal appraisal system, have been introduced for members of the Chaiity's supwt staff. ConsKJwable time aThJ effort expended in ensuring that all members of staff are kept fulty Inform abt ne* deVelorMYts and in addressing questions and any concems. A significant amunt of staff time is devoted to ensuriThJ that the Charity's polties a fulty complianl with current legislation and best wactse. The Charity seeks lo wcrt with all employees. taking into account their personal ¢ircumstartes. to ensure that apFYwiate trainirwJ. deveknpThnt and advancement opportunities a aVailae lo enable them to re&h thr full FQtential. The Charity is comry¥tted to a tNJi¢y of equal opportunity in employm1. The aim of the p)licy is to wUre that.. selection crilwia and wocedures are in place lo ensure that iThJrrfiduals are selected. promoted and treated on tho ba$1$ of their rdevant merits and abiif(ies. no job applicant ry eryloye• r8¢eives less favourable treatnt on the grounds of their gender, gender reassignment. marriage w civil partnership. Fwnancy aThl matemty. sexual or1entat)n, disability, race, colour, ethn background, natality. or belief or age. no emtdoyee suffers harassm8nt (K intimidation.
' THE DEAN CLOSE FOUNDATION ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021 (CONTINUED) DISABLED PERSONS The Charty will employ disabled persons when they are suitable for a particular vacarry and every effort ' made to ensure that they are given full aThJ fair consideration bthen such vacancies artse. STATEMENT OF TRUSTEES. RESPONSIBILrriES The Trustees {who ¥e the Dir1( of The Dean Close Foundation for Ihe purposes of company lawl are responsible for pyeparing the Trustees. Annual ReKKIrt arKI the finanryal statements in accordance with applicable law and United Kingdom kcounting Stsndards (United Kj'ryiom Generally Accepted Accounting Practice). Company law requires the Tru$tees to Fxepare arla1 ststennts f(x each financial year. Under coryany law the Trustees must not apFYove the financkil $talents unl8ss they are satisfied they give a tw& and fair view of the stsle of affairs of the tharitable company and the group and of the incoming resources and application of resources, including the income and expenditure. of lh8 charitable group for that period. In eparing ttrEse financial statements, Tnjstees are rwuired to: select suilatAe accounting policies arml then appty trwn cMsi5tenty,' observe the methcrfls and rKinciples in the Charities SORP.. make judgments and ests'mates that are reasonable and wudent slate whether applubb UK k¢ountir#J Standards have been f1(Ved. subject to any material departures disclosed and explained in the finarra1 stateThnts; aThJ Prepa the financbal $tstennts on the wing ccrfwn basis unless it is inappropriate to presume that the charitable crAryny will ¢ontinue in tjusiness. The Trustees are resFxMsibl8 for keeplng adequate a¢¢wnting rwds that are sufficient lo show and explain the charitable company's Irans&tions. discbse vrith reaSonae accuracy at ary lime the financial position of the charitable company and enable them to ensure that the financial statements comply wth the Companies Acl 2006 and the FwowsK)ns of the CharlS con5titutK)n. TY are also responsible for safeguarding the assets of the charrtaNe Company arKI the group arNJ hence for takirNJ reasonable steps for the prevention arKI deltiOn of fraud arKI Oth legUlarleS. In so far as the Trustees are aw. there is relevant audri informalh)n of whth th8 charitable compatys auditor is unaware; and the Trustees have taken all steps that they ought to have taken to make therrtsefves aware of any relevant audit information and to establish that the auditor 1$ aware of that irfformation.
THE DEAN CLOSE FOUNDATION ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021 CONTINUED) STRATEGIC REPORT Prinupal risk$ and othermatters olstr8t8gic AmtanCe The 8oard of Trustees is resnSible for Ihe Managert of the strategic risks faced by the Charity. Detailed consideration of risks is deated lo th8 Finance and Genwal purp)SeS Committee. assist8d by Ihe Warden and Bursar. Rksks are aThJ assessed controls are implemented and monitored regulady. The Charity's Risk M¢)Jel is reviewed and updated on a tem)ly basis by the Warden and Bursar and presented to the Finance aThJ General Purposes CThnmitt88 for apF¥oval. The key rlsk controls used by the Charity ¥Klude: maintenance of a comwehensive Risk Registw. formal agendas and minutes fLY all Committee and Board rneetiry$. detailed Temis of Reference all ComnNttees, whth We regularty revitrw&J. c0mweherw8 strategic F4anniThJ, LxJdgetirKJ arKI management COUntiry predr@S. a Well-eStslshed cryanisatn8l structure and dear lines of tI. a conyehensive range of loal, WTri1 wlKies. clear authorisation aFproval levels. vetling procedures as required by Iw*. Through its risk management wctesses. the Board has ¢4y¢lUd that the Ma1 risks currentty confronting the Charity are: the generabon of irtsufficient swplus to fund the Obj11¥0S of ts Strategr Plan. a downlum in demand iThlepeTrJenl education driven by erorb)miG ¢mJitions nationally and internathalty, and ojrrent parental affordaLHlity corwrts. irKreased cost caused by changes wi G0vwmIt 1. the orvJoing impact of COVID-19 and ¢or6equent business operatrts. Th8 Board is salisfie(I that am majcK rtsks KIentIfd have been &Jequately mithjated whve rwessary and possible. It is recognised that swh systems can onty provmle reasonable. but rt absolute. assurance that major risks have been adequatety managed. Through proactive management. the Foundation has ensured continuity of education for ils pupils durir@ the COV1[19 thkdcwn peri(MJ and managed its ¢ash flows well within agreed facilities wth its bank. Whilst there remain urwtainties as to the leThJth of time that COVID- 19 will irn on the Foundats'on. the dNersifulion of Irome streawts that Dean Close Nurseries Limiled and Dean Close Servw Limited bring to the Group wll continue to ultwnately reduce risk in the longer ln
' THE DEAN CLOSE FOUNDATION ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021 CONTINUED) Resutts lorthe year This year. the Senior SCI averaged 481 pupils12020: 461). of whom 228 {2020: 221) were day pupib. The Preparatory SchcJ averaged 301 pupils12020: 297) of whom 225 {2020.' 222) w8re day pupils. The Pre-Preparalory Schcol averaged 124 puwls12020-. 122) measured on a fvll-tirne equivalent basis. all of whom were day pupils. Dean Close St John's School averaged 153 pupils {2020.' 1651 of whom 14412020: 1561 were day pupils. The principal fundiTrJ sources for the Group are sckkn)I fees and day nursery fees. The consolKlated Surplus fcff the year befe d8preciation and arnrbsat#)n of gcrfxlwill was £2,018.241 (2020: £211.8141. Total incoming resources irueased by £2.2m or 9.70A whil$l total expenditure increased by £O.gm ¢X 3.6%. There are a number of reasons fLY the imFovemenl in this surF4us. The continuing benefit of the Ffograms "Costbase 20". and "Costbase 21". whKh started in January 2019 saving £1.4m of permanent overhead to date, the growth in pupil numbers at the senior and Chellenham prep school in September 2020. outslandiry grthvth of the nursery group. goc#J Tfftanc1 control and the strong performance of the investrnenl pCwNo1. Set against those gairts were carTwrvJ Ihe Irfeased cost of the Teachers. Pension scheme. the performance of DCSL, which was again severely affected by Ihe Pandeffl and further schcol fee varlations which were given to parents due to the bl8nded nIng delp4ered dn9 part of the Lent temi 2021. Capital investment during the year total £5.1m. This irtluded £2.85m for a number of freehold propertie$ arKI £1.1m ftx the initial phase of the ACadern Quad RedeveIopThnt at the Senior School. Oth significant capital investment includes £0.32m for improveff*nts and refurbishm8nt of boarding houses in the sen and Prep Sch(MJ and £0.1m additional investment in IT. Debtors continued to be a¢tivoly monitored and managed throughout the year aThJ are at a similar level lo the previous year. Airthrie School wa$ a¢qured the V Juty 2021. The Trustees are Satisf wilh the ovwall finartial posili¢)n of the Foundation. Review of aChvernent andperfance for the year The achievemenls of the Charity and its ¢4)nstituent hC)IS aThJ nwseries need lo be under5t( in th8 context of the global pandemic that ¢ontinued to disrupt normal teachitvj and commercial activilies for a second academic year in su¢¢ession. with national lock(kyNn measures reSu1ng in remote leaching and leaming for part of the academie year. arKI wth sw3nrfKanl restrictions on the movements of international students in paitular. Despile the ¢on$lraints, the nurseries remained open thrOugtrxrt Ihe year and the Scknls maintained both tardIng and day provision within the government guidance, irKludirwJ m8ior innovations in teaching practice to enhance CcUrru1af wovision those at home durirKJ lockdown isolation periods. Investment in IT was accelerated and the thl of engagerrwt of pupils in interactive online dasses was high. Despite the challengirKJ arKI unique ¢ir¢um5tarKes, the clNidren and young people in the Charity's care achieved remarkable things during thi$ academt year. At Dean Close School. Centre Assessed Grades at GCSE result1 Ki 64% 7 grades and 83% A'_B al A Level. These results a realist and in line with the direction that the school ha$ been rTr)viro over the last few years. The pro¢e$s of providing grades was painstaking. with careful use of data and eVere. and the results are an accurate refiect of what these year groups V4Duld have achieved had th8y sat public examinations. On¢e again. over of those applying to unNersity w¥Ye $wxes$ful with their applicalM)ns to the univer$ilie$ of ther first choice. The School continued to develop an extended rffeparan for University with a series of lal(s and s&ninars for the Upper Sixth. Dean Close St John's celebrated the achievewt of the pre-sen Baccalaureate programme ils Year 8 leavers. Nine pupils progressed to Dean Close SctrKrfJl.
THE DEAN CLOSE FOUNDATION ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021 IcoKriNUED R&vi8w of 8chi8vement 8ndperfomi8nce forlhe year (continued) Sporting rlre9 across the SclKx)Is were signlficanty disrupted by the pandemic, bul training continued either in person or via online leaming for a rarvJe of SFKxts. The opwtunity was taken to introduce fitness programmes fc use at home during I(kdn and many pupib undertook sporting challenges for charity and for personal development durirvJ this time. Equestrianism continues to grow as a specialism al Dean Close. wrth a cross-Foundat team being fidded for eventing competitnS with th8 SUPPOrt of parents and coordinated by the Director of Equestrian Spwt. DCPS. DCPPS aThJ DCWS were all able lo run SpcKts Days with some spectators. and cricket matches also began again in the Trinty Term. Despile the congtralnts. a variety of drama wcKluctirm trA)k pla¢e during the year. with the outdoor Tuckwell Theatre coffing into its own to allow audiences to enjoy the produclions. as well as indoor productions with more limited audiences. These included A Midsummer Nhr$ Dream aTrJ The Importance of 86ting E8m&st al Dean Ch)se School, and a well-received prodU)n of 8ugsy Malone at Dean Ck)se Preparatory School. During h)ckdown pUls. staff, Iruslees and alumni ¢tributed to a reCdIng of every one of shakeSare,s sonnets. DCSJS produced AIKe in WtThlerfand arK1 an adaptation of A MSuMMer Nyhts Dream. A series of outstanding conCts look place acrc6s the schwls aThJ music continued through lockdown with virtual choirs, orchestras and jazz ensembles all continuing lo rehearse a1 perform. A virtual House Music Competition was made tM)ssitAe at DCS. and Battle of the Bands. and House Music took plac& live al DCPS. Dean Chjse Pre-Prep continued its Kyograrnmg of 'WtyAT Days, with a 'Supersens8s' Day combining exploration of the senses with fundraising for'Guide DcJs for the Blind.. Thé 'FtsJndation Stones. values were ernbedded acsoss all the SchLN)Is aThJ nurserK8s durirvJ the year, with reward systems introduced lo pronle the Aim aTrJ Values of FlourtshiThJ. Courage, Love and Contribution, as well as assemblies. PSHCE lessorts a1 lutixials fccusiry on 1T development. All the Schools held face-lfaCe Speech Days and priz&1¥1ng celetrffatns al the end of the Trinity Term. enabling the iMptsnt transln5 for leavers in the Upper Sixth. Year 8 aThl Year 2 to b8 marked, and the opportunity to acknowledge and celebrate the successe$ of all pupils in every area of sch)ol lil8. For the first time prizes were awarded for tkne exemplrfw.ng the Dean Ck)se Foundation stC(s values in each school. Thé Charity's partnership work continued arvj was strerwened during the year, particularly in the Chellenham Education Partnership w(rt wilh other 5e¢orKlary schools in Chellenham. Staff and pupils look part in a number of collaborative activitses, all staged vrlualty. including young people's wycasts h05ted al All Saints, Academy. Oxbridge preparakn SesSnS hosted by the MFL and Science departments al DCS and the 'Manrfesto fcf Change, project ccrfxdinated by the UnNersity of Glouceslwshire to explo young people's bjeas for educatKJnal change. In April 2021 Dean Close senior schwl was inspected against the govemmenl guidance on hosting pupils in 'red list quarantine. ie retuming from countries on the Covi&19 'red list, and overseeing their quarantine at schod. The school was found to be compliant in all respeds except one. which was that a pupil returning from Oman had been allowed lo visit a publ toilet on the way back to school, whh was not allowed in the guidance in force at the lime. This led to a 'not m8t' finding on two of the National Minimum Standards for boarding. The scth)ol has sirKe updated ils cO-19 risk assessment and pul in place an action plan lo ensure that such a tfeach could not happen again. The fNe nurwies are all inspected by Ofsted. Four were rated GOCKI at year end but Lithe Trees Hucdecote warranted an 'inadequate' rating at a recent inspection in August 2021. Three issues were around staff trainirrfj and triggered an overall inadequate rating despite the Good jUdgerrn1$ ljualty of Education arn1 BehavK)ur aThJ Attitudes. It will be reinspecled in the next few months.
THE DEAN CLOSE FOUNDATION ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021 (CONTINUED) Energy 8nd emissi(S report During the yew the Fow¥Jaticm th8 f11rJ energy eff¢r acliorts. ConliNed rollout of LED conversK>ns and replaCets arloss all sites. An irTraSe lo the number of biGycle starbts to further eUrage Staff aThJ pupils lo cycle to school where wactical. A summary ol key data is as folu. 2021 2020 UK energy use {kWhl 8,165.172 6.161.872 Associated Greenhouse gas emissions Tonnes C02 uivalent Intensity rath) (Emissions w FTE) 1.554 1.225 UK energy use covers the use of nalural gas for heatiry aTrJ ¢kIng and eleclricity for heatlng and I3hting across all entities of the Dean Cbse Foundat. Assoch3led greenuSe gases have been calculated using the Gov.uk conversion 2021 conversion tables using 0.18386 per kwh for natural gas and 0.21233 per kwh of electriGity in each reporting year. The lower energy use and associated Greenhouse gas emissions in 2020 is due to the school siles beiThJ ck)sed duriThJ part of 2020 due to the COVID Ictkdown. Grantm9ng policy Trustees are committed lo broadening access to t)ean Close by offerfng rnans-tested bursarie5 based on an assessment of financial need lo pupils wfN)se parenlslguardians are unable lo pay the full fees. All bursaries are means4ested annualty and have a value of up to 1(Kl% of the fees. This year, the value of means-lesled bursaries. dergy and Arnd Swices awards and other concessionary fe8s was £3.06m12020: £2.79ml. wtlh a further £1.3m {2020: £1.22m) awarded in the forrn of scholarships and exhibiliorts. The FOUndatK,S is to widen access to Dean Cbse to all sectors of the community by woviding assistance with up to 11)0% of scfwl fees for deserving children and to relieve hardship where an exisliTrJ pupil's education and future prttspects may otherwise be al risk. Fundraising continues to ovide major awards. krthvn a$ FoundatM)n Awards arKI the Sc1 extremety grateful to and thanks donors for their SUPFMXt. Scholarships were made available to entrants aged 11, 13 and 16 tor cAtstsThJing ability in adeMiC work. music. art. sport and drama. Such awards are generalty limited to a maxinwm of 20% of the school fees for any individual. Mirw awards were also extended to a small numbw of children entering the Preparatory School at age 7. Fundraising perfomiance Donations. gifts aThJ legacies totamed £578.950 in the year (2020: £105,622). of which £575.945 were for restricted purposes. Further details c0ming $trl&l donations are included in Note 17b lo the Financial Statements. The increase is attributab to a numbtr of sBJn1ranI donations receNed in aid of funding the Academic Quad Redevelopmenl lo (xeate a Mathemalrs and EconomS/BUsinesS centre al the Senior School which was opened in September 2021. The Trustees wish lo record their thanks for the many kind aThJ generous donations received throughout year, Wittrt which thts and other initiatives would have either been delayed or not been possible. Fundraising is overseen by the DevelOpEnt Cornttee which is chaired ty a Trustee and includes other Trustees. The Development department carries out day to day fundraising tasks assisted by an exlemal Consultant. Particular attention continues to be given lo the management of dats and the protection of vulnerable people. The Foundation has had no complaints aLul its fvndraising activities this year.
THE DEAN CLOSE FOUNDATION ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021 (CONTINUED Inveslmgntpowers, pdKy 8ndperfomian¢e The Trustees, rA7•Yers for the investment of ils cwate funds are set out in Ihe Articles of Assocrdlion and are, subject to statutory reqUMents. broadty equivalent lo Ih)s6 of an in(Jrvidual beneficial owner. For the investrnent of Ihe trust fuThJ$ that11 administers. the FouThJalM)n is subject to the Trustee Act 2(h)o. The Tru$lees' pollcy is to obtain a relum of catal gain arKI reinvested dividends on the invested funds al a suitable benchmark. therety enhancing the FOundat#'S atylity to provide schOlthips, bursari8s aTrJ prizes in fvlure years and preservirvJ the capital value of the undertying investments. The Charl$ investment kKrftfolio is managed on a disCretry basis und6Y an agreed sel of lr)vestwnt parameters that are stated in the Foundation's Investmenl Polw. PortfolK) perf0mnCe is rewted term against an agreed benchmark aThJ the Foundation's Inveslmenl Manaw provhjes sIx-rr1hIY briefings to the Finance General Purpose Comrnittee whth include detailed anatysis of the portfOl'S performance, overviews of market conditM)ns arKJ his Strateg approach to (*>taining an (ptimal return on the Charity's investments. At the year end the Group's lorvJ term investrnenls totalled £3.38m {2020: £2.86ml. The overall total investment relum over the year was 18.1% {2020.' 2.2%) which refiected an excellent result aided by rising wodd strKk markets. Res8N8s level andpc4Ky The Charivs EicY is lo invest in prnIses and equipment to support the business and eduCatn requirements of the Charity. while ensuring adequate financitvj of day-to-day operalional need$ and the maintenance of adequate reserves to meet any contingencies as they arise. Therefore retained Surpluses are nol held as free reseryes, twl are normalty ulilised for imFYovements to the Charity's facilities. Thi$ policy is supported by extemal rinarlng as arKI when nO$sary whth is alkcated lo Specif capital proi¢¢ts. The Group's total reserves of £18.04m (2020.. £17.36m} at the year end cluded £0.53m12020: £0.55ml endowment capital. £0.76m (2020: £0.27m} unspent reStrted fu15 and £16.75m 12020: £16.54ml unrestricted funds. £25.35m 1£21.64m) of this rerffesented the net bCk value of red a$$ets less associaled lorvJ term funding arrang8ments. leaving free reserves of ne9atNe £8.6m12020: negative £5.1 ml at the year end. R8sources The Charity has at its disposal ur851Tted lun(ts which are invested by Rathtrf)ne Inve$lnknt Management In a broad portfol of bonds. equities and &ish. as disclosed note 11. The Chanty has a rna bank overdraft knlty of £3m to Serv workiTrJ capital reqlreMentS. The bank loan facility has been ulilised as planned to Fyovide fundin9 to ddiver orvJoiThJ capital developments whth form part of the overall strateg Pian. The Charty's corporate and trust funds all have suffi'cient reali$able assets apwopriale to meet their respective oblvJation5. 1A
THE DEAN CLOSE FOUNDATION ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021 (CONTINUED) FUTURE PLANS OF THE DEAN CLOSE FOUNDATION The Charity's strateg Plan sets out the Dean Close values. ¥ish)n and ethos. The Pn L8 buirt around four pillais.. Educational excellence Financial sustainablty Employee engagement Partnership cc41aboration Around these pillars, the plan establishes mwjium to Iry¥J-tem aims, whth are: To cement aThJ sustain the FOUndat'S stroro &adeffK reputation while avomling sewlon based on academic grounds alone: To remain a flourishing. co-edLKational comftwnty for faffilles. with excelknt boarding and day facilities and excellent childcare supFM)rt in ils nurseries: To continue to devek)p excellent relationships parents and fanxlw arKI to provKle the highest possible standards of pastoral and lutorial support: TO 5U$tain a repUtan excelerre in the cr8ati¥e arvj perfryming arts arKI in sport; To continue to develop th8 work of the Chatdain aThJ the chaplairw team. deveW'ThJ young Ctistian leaders and promotirvj spiritual development: To maintain and increase pupil numbws ttwhout the Foundation. particubrty at Dean Close St John's School and in t)arding: To Continue the growlh in eamings of Dean Close Ser¥es Limrf(od arKI Dean Close Nurseries Limited. in order to invest those eamings in fath"liti"es a¢ross the Foundation" To be excellent eoyers. recruiting, traniry and devek)png outstanding staff., To develop and sustain partnersh¥>s with other cKganisatiorts. Illy. natK)nalty and intemalna1ly. and To conliwe to develop ¢Thnrnunty acte35 lo the FwrKlation's facTrlities and to widen access to indeperKlent educat*Jn through the provisK)n ar active promotion of rneans-tested bursaries. The DevelopEnt Board oversees furnlraising activty tuwards our Ihree major campaign objectlves: campus, Cornw1ty arKI currKuI. Campus - to renew the academic heart of Dean Close S¢hcol. ¢reatir@ innovatrrfe and •xciting teaching spaces with an emphasis on preparalion for modem working lrfe. Community to establish a long twm 8ndThMnt supporting FourKiation Awards, which are transformallal bursarie$ for deservffj arKI talented pupils. Curriculum to 8slabli%h a ojrriculum through all the age groups which 8mphasi8es Skllls for the Future, indudin9 links wth industy through parents, alumni and thal partners. FINANCIAL STATEMENTS The finala1 statemenis on pages 22 to SO have been w¢par¢d in a¢¢tydan¢e with the Charities Statement of Re¢ommended Practre FRS 102.
THE DEAN CLOSE FOUNDATION ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021 (CONTINUED) KEY ITEMS IN THE STATEMENT OF FINANCIAL ACTMTIES ReStrted IncLMY comwses dNidend ino)me frorn investnts. rental irKomg and donath)ns. The endowed reseNe contains the unanKx1ised tx)riion of the Arts c[11 Grant made for the construction of the Musi¢ Schl1 in 1997. The FoundatKtrn's non-charitable trading Iude$ the folbwing activities of Dean Close SeNices Limited: the oPeratn of the Bacon Theatre, lellings of certain parts of the Charity's property lo provide access external groups lo sporting, music. drarna and other facilities. tCMJether with incom8 from the School Shops. The Foundation has continued to develop a range of owned and managed sports and education81 offwings includiThJ a Residential Language Course at Dean Close Sl John's School, an Easter Revision c¢JJrse and ¥aruS Dean Close branded stwyts camps. whi¢h are operated through Dean Close SeNices Limited. The management of the chiklren's day nursgries is undertaken through Dean Close Nurseries Limited. All surplus income of the tradiry substdraries is used f¢y the purposes of the Charity. As previousty reFJ1ed, the global COVIO-19 parvjern arKI re5u1kn.ng travel restrictk)ns has had a significant Impact on the resulls of Dean Ck)se sve$ Limrted. PUBLIC BENEFIT Direct Public Benefrt indudes means test&J bursaries and grants made io existing and new families. Trustees are committed to broadening access to Dean Ckjse by offering means-tested bursaries lo pupils whose parents I guardians are unable to pay the full fees. Al bursaries are means-tested annualty and have 8 value of up to 100% of tt18 fees. The Foundat#)n also has a scheme thal helps mili families with their Bursartes can range from 5% 10 of the sctrNxl fee. On (t¢asions vthere certain students are s81ected for certain extracurricular ArtslDramalSF#Yt trips but where the cost afone kyecludes their participation we eAn relieve that finanal burden in certain circumstances. The Charity does not have a large endowment and therefe the Trustees are 1ndIvI. when bursaries are provided. that there remains a fair balance overall beeen Ih)se benefrttirvJ frcffj bursaries and fvll fee-paying parents. many of whom make significant personal sacrifeS to fund thr children's educatw)n. FundraiSij ¢ontinues to Fyovide an endowment to Support Foundation Awards and lrfe-changing bursaries for pupils from families of modest means. Foundationers. supported by doncrfs from Ihe Old Dan1n c(ynnwnty. former parents and other individuals. continue their edatIon al the senmy school a1 these talented and deserviThJ indNiduaFs would never have been able to cortsider independent schooling without these transf0Mli0nal awards. The Foundation alts lo iruease the numbw of FourKlationws lo 20 over th8 coming 10 years. IrKJirect Public Benefit includes the use of falitieS such as the 8acon Theatre and sports facilities which, from lime lo time. are let on a reded cost to l(xal groups or groups where their educational or artistic value is hvJhty regarded in educat#)nal terw6. The FoundatK)n also invites thal kyeparatw schools, junior schools and nurseries to benefit from FoTesl School. arKI from events sh as sports skills days, choral and chestr81 days. aThJ science days. Local children also have the opwtunty to attend Ihealre WShopS and plays. Facilrties are also made available to educat)nal groups. and have. exaryle. hosted at no charge GIoLWtershKe Earty Years meetings in the Pre-Prep hall with teach8rs from schools across Chellenham. The Trustees confm that they have conwied with their duty in SectKJn 4 of the Charib'es Act 2011 to hav8 due regard to the publ benefit gubjance pubii8h&J by the Charity Comff¥ssion for Engnd and Wales. PARTNERSHIPS Partnership activty in the Dean Close Foundation opwates C levels.. kxalty. regionally. nalwjnally and temabonalty. Locally. il ha$ many partnerships with wmary schools arKI their pupils attended concerts. plays, SFWNts Skills and Ccrfnmunity A£tion days. and Forest Schcol at DCSJ, DCPS and DCS or hosted assemblies led ty DCS pupils. The Chemenham EducalM)n Partnership (CEP) has ¢ontinued lo gain considerable mmentum desiNte the pandem. Thwe are many regional partnership links In Gloucestershire aThJ the South West for SkNt. business. chapiairry arKI music. National links are with academic rKganisalior. the C7 Schools. Assctiation. and TISCK Finalty, inlemalional partnershlps have been disrupted but the Foundation remains committed to schfy)Is in U9anda and China. 1R
' THE DEAN CLOSE FOUNDATION ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021 CONTINUED AUDITOR The auditor, Crowe U.K. LLP, have iThJicated their willingness to continue In this role. In accordance wSth Section 435 of the compan Act 2006, a lender prccess for tho next 5 years of audit will be undertaken in eaTty 2022. The Annual Ret of th8 Trustees and iraled strateg Report were approved by the Board on 4 December 2021 arbj signed on rls behaff by Kathryn Carden Chalrman of Trusteos
THE DEAN CLOSE FOUNDATION INDEPENDENT AUDrroR'S REPORT TO THE MEMBERS OF THE DEAN CLOSE FOUNDATION Oplnlon We have au(tited the finarrti81 statements of The Dean Cbs8 Foundation the year ended 31 August 2021 which comprise the consolidated statement of financial activths. the consolidaled and ¢harity balance $heet$. the cons(Aid8ted cash flow statement and notes to the financial slatements. induding a summary of Significant accounting policies. The ffinaal ret1Th3 frarnework that has applied in their preparatpJn is applicable law United Kiryth)m Accounting Standards, induding Financial Reporting Stsndard 102 The Financial ReportirYJ Standard applicable in the UK a1 Republ of lTrland (Unrted KIOM General Ae¢epted Accounting Practice). In our opinion the financial ststements: gr4e a Irue and fair view of the state of the group's and the charitable companvs affairs as at 31 August 2021 atwj of the group's incomiThJ resources arwj applration of resour. including its Income and expenditure for the year then ended; have been woperty wepared in acc(xdan¢e with UrMt&J Kingdom Generally Accepted Accounting Practe- and have been wep¥ed in with the rwJuir8ments of the Conyjanies Act 2006. Basis for oplnlon We conducted our alIt in acccKdarte with IntematKaI Standards on Auditing (UK) IISAS IUK}l and applicable law. Our responsibilrbes urKJtr IIKK8e slarxlards are further described in the Auditor's responsibilities fcff the audit of the finar¢ial statements Sect of our ram. We are iThYependent of the group in accordance with the eth1 requrements that are relevant to our audit of the fi'nancial statements in the UK, including the FRC'S Ethical Standard. and we have fulled cmjr other ethical responsibilities in accordance with these Tequirements. We believe that the audit evidence we have obtained is sufficient and appropriate to wovKle a basis okNnk)n. Concluslons r•laUng Io golng concom In auditing thg financrdl Staleft. we have condJed that the trustee's use of thg going ¢on¢¥n basis of aCUnting in the preparation of the finarKial statements is apFwiate. Based on the th w8 have perfwmed. we havo Th)t identrfied any material uertaIntseS relating lo events or conditions thal. irKlIvUaIty or ¢olle¢tivety. may cast sKJnfficanl doubt on the charitable company's ability to continue as a going concem a period of at least Iwefve from when the financial statements are aulhorise¢J IOT Issue. Our responsibilities and the responsibilities of the trusle8S With respect to gcing cor£em are degcrlbed In the relevant sectK)ns of this repjl. Other infomiation The Iruslees are respOlbIe ts the othtr lntsma1K contained within the annual repcwt. The other information comprises the informatK)n Includ in the annual retK)rt. other than the financial statements aTr our audilorfs reFth Ihereon. Our opinion on the finala1 statements does cover the other information and, except lo the extent othwwise explolty staled in our retKvl. we not exw8ss any form of assurance on thereon. Our reswnsibility is lo read the other Informat)n and. in dtyng so. consider whether the other information is materially inconsislenl wlh the financial staterrents or our kntr•Aedge ci)lained in the audit or otherwise appears to be materially misstated. If we such material inconststencies or apparent material misstatements, we are required to determine whether this gNes rise to a material misstatement in the financial stalemenls themsefves. If. based on the work we have Pfd. we corKlude thal there is matwlal misstslemenl of this other information. we are required to repxt that fact. We have n¢)thing lo r¢w1 in thi$ regard. 1A
THE DEAN CLOSE FOUNDATION INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE DEAN CLOSE FOUNDATION (coKllNUED) Oplnlons on other mattern pre•crlbed by th• Companl•s Act 2006 In our oplnion bas&J on the work undertaken in Ihe ¢ourse of our audrf( the InforMan given in Ihe trustees. reFth, whth clUdeS Ihe directors. report and the strategiG report prepared for the purposes of company law. fc* the financhql year for whi¢h the financial statements are wepared is cortsislent with the financial stslements.. and the strategic rewwt arml the dirt$. irtluded wrthin the trustees, report have b8en wepared in accordarte wtth applic8trAe legal ]Uirements. Matters on whlch we are roqulrod to report by exceptlon In light of the knowledge and urKlerstaThling of the group and the thafilable compary and their environment obtained in the course of the audit. we have rt identsfied material mi5Statements in the strategic report cf th8 directors. report induded within the trustees. rewl. In light of the knowl8Jge and understanding of the ¢haritable company and thwr environm8nl obtained in the course of the audit, we have not idenlffied material rnisstatem8nts in the slrategK report or the directors, reptyt induded within the trustees, rewt. We have nothing lo reFQrt in respect of the folknvirvJ matters in relatron to whith the Companie$ Act 2006 requires us to report to you rf. in our opinM)n: the parent ¢onyany has not kept adequate accounlirvJ rec(Yds; or the parent conyny finarKial 5tstements are not Ni aweerrth with the accounting records and retums: or certain discklsures of Irustees. remuneration specffied by law are not made.. or we have rKJt recerrfed all the inf(¥matn aTrJ explanatiorts we require fly 0 ajIt. R•sponslbllltl•s of trust••• As explained nre fulty in the trustees, resFM)nsibillt statement on page 9. the trustees (who are also the directors of the charitable company for the purFoses of coffwny Law) are reSEi51bIe for the preparation of the financial statements and for being Satssf that they gNe a true and fair view. and for Such internal control as the Iruslees deternNne is necessary to enae the preparatM of financial statements that are free from material misstatement. whether due to fraud or error. In preparfng the financial statements, the trustees are r8sponsible for assessing the charitable compary'$ ability to Continue as a going concem. discknsiry. as appIable. matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the ¢haritable company or to cease Operatior. or have no realist altemative txrt to do so. Audltor's respons1bll1tl for th• audlt of th• Iln4ncl•l st•l•monts Our objectives are to obtain reasonable aSSUrae aLM)ut whether the fina181 statements as a wtrth)le are free froffl material misstatement. whether due to fraud cf error. and lo issue an auditor's report that iludeS our opinion. Reasonable assurance is a high level of assurance. but is not a guarantee that an audit conducted in aCCordare with ISAS (UK) will always delect a material misstatement when it exists. Misstatements can arise from fraud cy error and are consKlwed material rf. individually or in the aggregate, they could reasonaW be expected lo innuenee the OrK)MIC decisK)ns of users taken on the basis of these financlal statements.
THE DEAN CLOSE FOUNDATION INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE DEAN CLOSE FOUNDATION (CONTINUED) Ext•nt lo whlch th• audlt was consldered capable of detecdng Irrogularltles, Includlng fraud Irregularities. induding fraud. are instances of non-compliance wth laws and regulations. We desb3n procedures in line with our resn$11rtW. outlined atfv)ve. to delect material misstatements in respe ol irregularities. induding fraud. The exlenl lo whlth our tKctedures are capable of detIng rtr3ularities. inCding fraud 15 detailed bdow". We obtained an understanding of the legal and regulal(ry frameworks within which the charity and group operates, fccusing on those laws and regulalKfyrts that have a direct effect on the detemiination of material atTh)unts and disdosures in the financial statements. The laws and regulations we CsIdered in this context were the Charities Act 2011, together wilh the Charities SORP {FRS 1021. We assessed the required compliance with these laws and iegulations as part of our audit procedures on the related fInarla1 statement items. In athjition. we ¢onsidwed l$lOr of cther laws and regulalions that do not have a drect èff8ct on the financial 5talemenls but compliar with which mwjht be fundamenlal to the charity's and the group's ability to operate or lo avoid a material penalty- We also considered the opp(tUnitIeS and incentives that may exist wilhin the Charitale Company the group for fraud. The laws and regulatn$ we considered in this conlexl the UK Operat were Th8 EdLallOn Ilr¥Jependent School Stsndard$) Regulatlons 2014. Auditing stsndards limit the required aJit [edureS lo ¥Jentrfy non-¢ompllance with these laws and regulations lo enquiry of trustees and other managewEnt arn1 irtsp)n of regUL9t and legal CorP0nde1e. rf any. We Klentffjed the greatest risk of matertal impact on the finartial statements from irregularlties. includirvj fraud. to be W1h the completeness and accuracy of r)n-fee income. and the override of controls by management. Our audil wocedures to resFyKJ to these ri8ks iluded enqueS of management, the bursar and the Finance & General Purwse Committee about ther own wJentifical)n and assessment of the risks of regularities. SaMe leslirg on the posting of purnals. revthving accnting estimates for biases, designing audit prCedureS over non-fee irKome, reviewiThJ regulatory correspondence with the Charity Commissi)n. Independent SChos Inspectorate, ofsled arKI readir#J minutes of meetings of those charged with govemance. Ow¥ to the inherert limitatic of an audit. there is an unav(Mdable risk that we may not have dele¢ted some material misslalements in the finartial statements. even though we have properly planned and performed our audit in acC{dance wrlh auditing staThJards. For example. the further removed rn- compliance with laws ar¥J regulalKJns {legulan'e$> is from the events and transactions reflected in the financial statements, the 18ss likety the inherently IIMrt procedures r4uired ty audiliTrJ standards would identrfy r(. In addition, as with any audit. there remained a hgher risk of non-deteclion of irregularities, as these may invofve oJlusion, ftxgery, intent*)nal omisshyts. mlsreFffesentats, or the 0¥Ide of intemal controls. We are r¥)t responsible ftr preventing arml cannot be expected to detect non- compliance with all laws and regulations. A further description of our responsibilili8s fty Ihe audil of the finartial statements is availabl8 on the Financial Repc¥ting Council's webstte at: www.fre.o .uklaudilorsres nsibilities. This description forms part of our aJItOr'S rewYL ?n
' THE DEAN CLOSE FOUNDATION INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE DEAN CLOSE FOUNDATION (CONTINUED) Uso of our roport This rert is made 801ety to tho chwtablo ¢rynPanS menrns. as a b(Mty. n acc(Xda> with Ch8w 3 01 Part 16 of Ihe Companies Act 2006. Our a(KJit work has tttn undertaken so that we might state lo the charitable ¢orrpany'$ memtws thos¢ matters we are r4uir&J io state to in an aUdIS report arKJ ft ) other purposé. To the fullesl extent pemrtted by law. we do 1 yt ty a$sUn responsi.lIty to anyone other than the Charilable Company arnl the thanlable Qywan$ MberS a5 a for ow audit work, for th rerxL tx f( the Onn$ we have fonred. Guy Bwgin SenKff SlatLfjlory Audit For and on behall of Crowe U.K. LLP Statutory Audit 4th Floor, Sl James House Sl James Square Cheltenham Gbuceslershire GL50 3PR Dale: 10 January 2022 ?1
THE DEAN CLOSE FOUNDATION CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2021 Inco a consolldalod Incomo and dltur• account Unrnstrlcted Roslrf¢t¢d Endowed funds funds funds 2021 2021 2021 Total 2021 Total 2020 Income Irom.. Charltable actlvllles School fees receNable Ancillary trading incom8 Govemment grant income Other tradlng adlvltlwJ Non-ancillary trading incow Investments Investment income Bank and other interest Volunlary sources Grants and donatrjns 20,067.790 261,817 231.398 20.067.790 261.817 231.398 18.131.815 256.362 1.155.464 4.037.285 4,037,285 3.293.245 11(¢) 63.878 18.699 35.617 99.495 18,699 .648 31.876 3.005 575.945 578,950 105,622 Tolal Incomlng rosourcos 24.683.872 611.562 25,295.434 23,065.032 Expendlturn on: Ralslng funds Non-ancillary tradirb3 Financing costs Investment management Fundraising and devdopment 3.274.058 284,242 21.325 76,073 3.274.058 284.242 22.004 76.073 3,234,059 234,641 19,275 100,079 679 Total deductlblo ¢09ts 3.655.698 3.656.377 3,588,054 Charltabl• actlvttles EducatK>n and grant maklng 21.289.782 138,117 21.427.899 20,619.288 Total ?wndl10 21945.480 138,796 25.084.276 24,207.342 Nel Incomlngl(outgolng) funds Irom operatlons bgforo transfern and Investrnont galns {261.608) 472.786 211.158 11,142,310) Gains on investments 462.374 14,727 477.101 25,270 Transfers belween funds 19.651 119,651) N•t movemont In funds 220.417 487,493 119.651) 688.259 {1,117,0401 Fund balarKe$ al I Septenknr 2020 16.532.963 271,853 550.238 17.355.054 18,472,094 Fund balanco$ at 31 August 2021 17 16.753,380 759.346 530.587 18.043.313 17,355,054 The noles on page$ 25 to 50 forni part of th8se financial ststeffents.
' THE DEAN CLOSE FOUNDATION FOUNDATION AND CONSOLIDATED BALANCE SHEETS AS AT 31 AUGUST 2021 REGISTERED NUMBER: 04193948 Group 2021 Group 2020 Foundatlon 2021 Foundation 2020 Notes Flxed assels Intangible NegatNe goodwill Tangible Investments 665.329 176.670 31.969.783 3.381.739 776.217 {76.670) 31,755,723 5.123.016 10 11 28.061.579 2.862.746 27.945.498 4.714,911 35.940.181 31.700.542 36.802,069 32.660,409 Current assets Stocks Debtors Cash al tsk and in har*J 120.031 1.606.685 74.293 135,429 1.635.878 187.060 12,814 1.448.419 45.088 9.350 1.534.609 102.155 12 1.801.009 1.958.367 1,506.321 1.646.114 Current Ilabllltlos Creditors payable wthin one year 13 9 634 753 Net current liabilities (7.833.744) {6.060,760) 18,703.581) (7.028.575) Total assets less current liabilitses 28,106.437 25,639,782 28.098.488 25,631,834 Long Ilabllltlos Creditcfs payable after on8 year 14 110,063.124) (8,284.728) (10.063.124) (8,284,728) Net ass•ts 18.043.313 17.355.054 18,035,364 17.347.106 FlnanGod by: Endimied funds Reslricted funds Unrestricted funds 17a 17b 17c 530.587 759,346 16,753.380 550.238 271.853 16.532.963 530,587 759.346 16.745.431 550,238 271,853 16,525,015 Total funds 17 1Q043.313 17.355.054 18,035,364 17.347.106 The r)et result the finanoal year dealt wilh in the fInarla1 statements of the parent charity was a surplus of £688.25912020.. defi¢it £1.114,0861. The finarKHI statements WPAe approved and authorised for issue by the Board of The Dean Close FOUlatiOn on 4 December 2021 aThJ sunpA on its behalf ty. Kathryn Carden Chalmian Matlhew Trwurer The notes on pages 25 10 50 form part of these finanual statemenis.
THE DEAN CLOSE FOUNDATION CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2021 Group 2021 Group 2020 Notes ReGonGlllatlon of net Incomlngl(outgolng) re80urc•s to not ¢a$h Inllow from 0ratIng actlvltles Nel in¢omI(0UIgo1n9I funds from opwati( 211.158 11,142,310) Ellmlnatlon of non.oporatlng castrflows: Investment income Finance costs Depreciation char98 Lossl{profill on disposal of assets Amortisation of goc%Jwill on acquisilM)n AMlIsatiOn of negativ8 ¥111 on acquisilk Negative goodwill gain on acqui$rti Decreas81{incr8ase) in stock Decrease in debtors Increase in creditors (excludY fees li advarte and deposits arKI composition fees) Increaselldecrease) in fee5 in advarte. deposits and composrtion fees (118.1941 284.242 1.221.737 3.160 110.88B (2.643) 79.313 15,398 29.193 1.081.941 {122,524) 234.641 1.217.966 1900) 110.888 10 {15.360) 279,260 833.716 882,038 (1.163.661) Net cash infkAv from operath)ns 3,798,231 231.716 Cash flows used in invo$1ing actMtI•s Purchase of tangl¢ fixed assets Proceeds from sale of tangible fixed assets (Additions toy withdrawals from investment FxNttolK> Investment income arthJ bank intttest received 10 (5.144.672 11.571 {41.892) 118,194 (617,784) 900 137,841) 122,524 Nel cash used in investing activities 15,056,799) 1532.201) Cash Ilows provid•d by Ilnandng actlvftles Finare costs paid New bank loan New other ban Repayment of secured loans (284,242) 1234,641) 705.000 1,821.376 1444,44S) Net cash provided by financirKJ actNitS 1.537.134 25.914 Change in cash cash equNalents in the year 278,566 (274.5711 Cash and cash equNalenls at the begiMiThJ of the year (224,074 50.497 Cash and cash equivalents at the end of the year 54,492 {224,074) Ark•ty4$ of cash and cash equlvalents Cash at bank 74.293 119.801) 187,080 (411,1341 Bank overdrafts 13 54.492 (224,074> ?a
THE DEAN CLOSE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 STATEMENT OF ACCOUNTING POLICIES (a) Charity informatlon The Dean Ck)se FoundatK)n is a charltable Compary limited by guarantee incorporated in England (tharity number 1086829 and company number 04193948) and 15 a PublK Benefit Entity operating from its registered offe Shelbum& Road. Ch8lt&nham. GL516HE. (b) Basls of a¢counllng The financial statements have been wepared in accordance th the Financial R8POrting Standard applicable in the UK and Republ of IrelaThJ {FRS 102). The Companies Act 2006 and the Slalemenl of Recommended PrlIce applicable to charilies preparing their accounts in 8ccordan¢e with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102}-12fKI edition effective 1 January 2019). The finala1 statements have been prepared on the historical cost basis of accounting, as n18 by the revaluation of investments, and in accordance with the Financial Reporting Standard appluble in the UK arKI Republ of Ireland (FRS 1021, the Ci)rnpanies Act 2006, the Charities SORP IFRS 1021 and the accountiry Folicies set out below. The fUnctial currency of the FoJndatKJn is Consid to be GBP because that ts the curren¢y of the primary economic envyonment in whth the FoundatKJn operates. The Charity has taken advantage of the exemption available to a qualrtying entity in FRS 102 from the requirement Io Fesent a chanty-only Cash Fl(yH StateTht within the consolidated financial statements. No separate Statement of Financial ActNilies has been presented ftx the Foundation alone. as pemiitled by Section 408 of the Companies kt 2CMJ6. The net Tesulls of the parent Charity a disclosed on p4e 22. Golng Concem As part of the Trustee's resrmjnsibilities of the approwialeness of adopting the going concem basis in preparing the financLal statements, a range of scenarios have been considered. The assumptions modelled are based on the estimated potential impact of COV1[19 restrictions and regulations. along th cNJr proposed respOreS over the course of the next 18 months. The most severe risk identified is a dNintum in pupil numbers and the impact that this would have on the Foundation's cash ftow. In thi% event. the Trustees measured response would be to pla¢e a rrKffalorium on all but essential capital exrendilure, lo make further cost savirNJs where approwiate lo do so and il necessary to IiquKJale investments held as detaId in note 11 in order to enable the Foundation lo operate within its current or increased bOrr(rJ facilibes. On the basis of this review. these financial ststements have been wepared on a Going Concern basis, which the Trustees conshjer to be appropriate based on th8 results for the year ending 31 August 2021 and cash flow proJ&tior* wepared the p8ricMJ 31 August 2022 and beyond. The cash fknv projections iThJicale thal the Group will b8 able to meet ils li8bilrties a$ they fall due and will be able to operate within the facilities currenlty available. The Trustees ¢$jer that there are no material uncertainlies over the FOUndat'S finatKial viability-
THE DEAN CLOSE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 CONTINUED) STATEMENT OF ACCOUNTING POUCIES (contlnued) Judgments In applylng Accountlng Poll¢lo• and Koy Sourc•s of Estlmatlon Unc•rt•lnty Estimates afvj judgments are continualty evaluated and are based on historical experierte and other fact(Ks, includiThJ expectations of fvture events that are believed to be reasonable under the cycufftslances. The items in the finarKial statements where estimates and judgments have been made Irlude the f¢Jk)wing'. {1) Us•ful •¢onomic livo8 of tangSbl• and Inlanglble ass•ts The annual depreCIatn and anbJrtisatI charge f(w the taryibl8 aTrJ intarJitle assets are serlte to changes in th8 estimated usefvl ec)ftc INes and resal values of the a5$ets. The useful ecryrni¢ lives and residual values are r&assessed annually. They are arrtnded when necessary to refi8¢t cuent estimates. based on technc4cguS advancement. fubjre investments. economic ulilisalion and the physul conditK)n of the assets. See rKiles 8, 9 and 10 for the carrying amount of the assets and rK)tes 1(hl. li) and ts'} the usefvl lives for eath dass of assets. (11) ImpalmMnt of Inv•stme Vlhen assessing impaim)ent of the investments, managernent cortsKlers factors iluding the financial results. future ou11ck. net assets and market value of each inesknent. See note 11 for the net ¢arwng amount of investments. (111) Impalnn•nt of debtor4 The gr(MJp makes an estimate of the recoverable value of trade and fee debtors. When assessing impaimenl of trade and fee debt5. management consKlers factors induding the current Credit rating of the debtor. the agn9 wofile of debtS aTrJ historul experiee. See rte 12 for the net cafryirwJ amunl of the debtcys. Basls of consolldation The Gorldated $latement of fThrKial actr¥It1 aThJ balarte $heel indude the finarla1 statements of The Dean Close Foundal)n and its three subsidiary Companies. Dean Close Services Limited, Dèan Ck)se Nursefies Limited aTrJ Nursery Child¢are Services {UKI Limited, Dean Close General Charitable Trust and certain SclN)larship FurKls made up to 31 August 2021. Dean Close Services Lirnited manages aThl lets property on behaw ol the Foundation operates the Schwl shops and the Bacon Theatre. Dean Close Nurseries Limited opwated five ¢hihJren's day nurseries during the year under review. The trade. assels and liabilities of Nursery Chibd¢are Services {UKI Limited were transferred directty to Dean Close Nurseries Lirnrted on 1 September 2017 and Nursery Childcare Services IUK) Limited has not traded since this dale. On 28 Aw'l 2020. an appIatiOn was made to dissolve Nursery Childcare Services (UK) Lirrrfled and the ¢ompany was duty dissofved on 6 Octot¢r 2020. tra group sales and profits are eliminated fvlty on ¢onsolidatK>n.
THE DEAN CLOSE FOUNDATION NOTES TO THE FINANCIAL STATEMEKfs FOR THE YEAR ENDED 31 AUGUST 2021 (CONTINUED) STATEMENT OF ACCOUNTING POUCIES (contlnued) Id) Incomlng resources Fees and &mMarin¢ome Fees receivable and charges ts services arKI use of premises are accounted for in the period in which the senIe is provided. SchTr)I fee income represents fees receivable. in¢ludiThJ additKJnal charges. less concessitins. AffL)unts recerved ur1 the SctKd'$ Advance Fee Sch8me contracts for educatton not ygt utilised lo setle school fees are rwded as deferred income a1 alk¢ated as current liabilities where the Juc8tK)n 11 be Fyovmled with 12 nK)nlhs from r8POrting date and as long-tem liabAilies wher8 the education will be provided in subsequent years. Non-chantabla trading Income from non<haritable trading represents the lumover from th8 trading activities of the subsidiary conyanies. Dean Close Services knmited arKJ Dean Ck)se Nurseries Limited and is recognised when the conyany has eamt entiuernent to th8 revenues. Investmenl Income DivldeThl L8 acCn for at Ihe date on whth the Charity has entillement to the divid8nd. Interest on b8nk balances and fixed income securibes are accounted for in the period n which interest is eamed. (e) Govemment grants: Job Rotonlion Scheme Income from Goverrffient ants. whether "capital" grants or 'revenue' ants. is recognised when the Group has enlitlemenl to the funds. any perfCffmae c¥Jndilw)ns attached to the grants have been mel, it is probable that the income will be recerved and the arnount can be measured reliably. Where enl¢tlement GUTS before IrMe is r&eNed. the is accrued. Where income is received in advance of the Group having entillement to the ftjnds, the Irome is deferred. The total anTr)unt of Governtrtht grarts rtteived totslled £231,397 {2020: £1.155.464} and there are no LInfUl11ed Conditn9 associated with th grant. The company has not received any other forn of Govemment assi$tarKe. (fj Donatlons Donations are accounted for a5 and when enlitlem8nt arises. affK)unt can be reliably quantified and econom benefrt to the Charity is cortsKlered probable. tYonatK)n$ receivable for the general purposes of the Charity are credited to "other unrestrict1 fvnds". to distinguish them from direct Foundation income. Dona1K5 for purp)ses restrioted by the wishes of the doncy are taken lo "restricted funds" where these she$ are legalty binding on the Trustees. Donations required lo be retained as capital in accordance wth the donorfs wishes are accounted for as "ermlowmenls. _ permanenl or expendab acccyding to the nalure of the restriction. Gifts in kind are valued at eslima18d open market value al the date of grft. in Ihe case of assets for retenlK)n or consumption. or of the value lo the Foundation in the case of donated Serv or facilities. ?7
THE DEAN CLOSE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 (CONTINUED STATEMENT OF ACCOUNTING POUCIES (contlnued) (g) Expendtturn Expenditure is accounted for on an accmaLs basis as sn as a liabilty is considered probable. L1iscounled to F)resent value loTrJer term liabilities. Ovefhead arKi other costs not directly attribulae lo partthlar functional activity categories are apportioned over the relevant categories on the basis of the Trustees. best estimates of the aint attributable lo that aGbvity in the year. either by reference to stsff time or space ocuJFwed, as ap[rIate. The irrecoverable element of VAT is Included wth the item of expense lo whth il relates. Cost of generating funds includes all the financing costs of the entity in •JdilwJn to the costs of Ihe development Off and trading expIlUre of the subsidiary rA)mpanie5 acGounted for on an accnJaLs ba$. Governance costs comprise the costs of running the Charity. irKluding strategic planning for ils future deveh)pmenl. also intemal aThJ extemal audit, any legal advice for the Truslees. and all the Costs of cOmn9 wtth constitutional aThJ slatutcry requbrements. such a$ the ¢o$ts of Trustees meetings and of wepar¥y staluty accounts arKI SatiS'rj public aounbillty. (h) Goodwlll and amortlfAtion Goodwill is the drfference bets¥een the arrnunts paid on the acquis11 of a business and the fair value of the hlenlifiable assets arKI liabilities. AnTh)rtisalion is FVided on goc#Jwill at rates calculated to wriie off the cost on a straight line basis over its expected useful lrfe as follows.. Goothvill acquisition of Nurswy Chikjcare serv (UK) Limiteii 10% on cost (i) Negative goodwlll Negative goodwill is the drffer between the fair value of Ihe assets and liabilities acquired of business aThJ the affw)unl pa#J on acquisition. Negatpie good11 is credited to irOrniNj resources on a straKJM line basis OV its expected useful lrfe as follows.. NegatNe gOjW11l on Asset Purchase of Airthrie School LLP 20% on valua ?A
' THE DEAN CLOSE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 (CONTINUED) STATEMENT OF ACCOUKtING POUCIES (continu•d) u) Flxed assets Tangible fixed assets are staled In the balan¢e Sheet at Cost less deweciatK)n. Items costing less than £5,000 are written off as an expense on acquisitK)n. Depreciation is cakulaled so that tsngible fixed assets are itten off ovw their currently estimated useful IN8S at annual rates. which are as foll¢xs'. - Freehold land Freehold property Plant and equipment Theatre equipmenl Fixtures and fittings Motor vehicles School shop equipment Computer equiwnent 2%- 6.67% on c05t 2W10%120% cost 10% on cost 20% on ¢osl 20% on cosl 20% on cost 10% - 25% on cost Assets under ConstrLl are delated unlA they are trought into use. Oporatlng leases Rentals under operatirKJ leases are tharged to the Slaternent of Financial ktNilies on a straight line basis over the lease lemi. Stocks Stocks are stated in the balarte sheet al the Icywer of cost aThJ nel realisable value after making due allowances for obsdele and slow mving st(Kk. (m) Debtors Shtrt term debtcrfs are measured at transaction 18ss any impaim*nt. Cash and cash oquivalents Cash is represented by cash in hand and depostls with finalal institunS. Credltors Shryl lem creditcrfs are measurgj at the tranSt pre. Tantlon Th8 Dean Close Foundation is a registered charity and is rnl liable to Corporation Tax or Income Tax on all its income aThJ gairts wcyerly applied for its charitable purposes. Dean Close Services Limited, Dean Cthe Nurseries Limited and Nursery ChildGare ServiGes (UK) Limited, trading subsidiaries of the FouThJation. are liable to C(wat¥)n Tax. ?0
THE DEAN CLOSE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 (CONTINUED) STATEMENT OF ACCOUNTING POLICIES (¢(xrtlnued) (q) Penslon costs T88ching Staff The scheme is a mulli-empknyer pension scheme. It 15 not PQ55ible lo wjenlify the Charity's share of the un¢Jerlying assets and liabilities of the Tga¢hers' PsK)n Scheme on a consistent and reasonable basis and therefore. as rg]uired by FRS 102. the scheme is accounted for as if il were a defined contributh)n scherne. The Charity's nIributIOnS. whh are in acNdanCe with the recoMmendatnS of the Governnt Actuary. are charged in the lOd in which the salaries to which they relate are payable. The Charity also operalgs a dgffinfyj otribUtn group personal pension plan with AVIV Employer's pensi¢Jn costs are charged in the PffiiCJ in which the salaries io which they relat8 are payable. Al pension costs albxated to UrresIj fvrKl$. thi% being the fund from which wages and salaries are paid. Non-Teaching Staff The Charity operates three defined ¢Mtrit#Jtion group pSOnal pensi plans for its nOteachIng staff with Scottish Equitable. Standard Lrfe and AVIVA. Empktryerfs pension costs are charged in the period in which the salaries to whh they relale are payable. I penstm ¢osts a alIcted to urestricied funds. this beng the fund from which wages and salaries are paid. Investmonts Lisled investments a valued at market value as al the balae sheet dale. Unr8alised gains and losses arising M the revaluation of investments are credited or charged to the Statement of Financial h£tive$ and are alk¢ated to the apwopyiate FuThJ according to the 'ownorship° of the undertying assets. Investsnents in sudIa[1eS are valued at cosl less provision impairment. {s) Composltlon fees The Charity owates a composition fee scheme for parents. IrKome arising is treated as general inctyne of the Foundation. out of which FW0viSK for fut8 fee liabilities urKler the Scheme is made. RKognltlon of Ilabllltles Liabililies are recc3nll when the Chaiity has an oblw'on to make payment to a third party. lu) Redundancy R8duThJan¢y 8rJ tenrmnation costs onty cwjr where absolutely nec8ssary and are a¢¢ounted for on an a¢¢rual$ basis the commitment to tuminate a F#)sl on the grounds of rgJuTrJan¢y ha$ been made.
THE DEAN CLOSE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 CONTINUED) STATEMENT OF AccouKfiNG POLICIES (contlnued) {v) Funds pollcy Unrestricted furbjs are furyjs that are available for use al the discretn of the Trustees in furtheran¢e of the objects of th8 Charity. Designated funds are unrestrthd funds which have set aside by Trustees for specir purposes. Restrted furKls are to be used in CordanCe with specific wtri¢tb)ns imposed by the donors or vAiich have been raised by the Charity for partular purposes. The Charty hok15 a grant under permanent endowfft. Ary incorne artsing on thg Pernanent Endowment Fund is treated as restred income of the Charity. Expendable endownrt furKls repres8nt the expeThJable endOWnt of the Chty. The funds are expendable at the discretK)n of th8 Trustees. (w) Flnanclal Instruments Bast financial instruments are initially recognised at transacti)n value and subsequentty measured al amorbsed cost with the exceplk)n of invesbnents which are held al fair value. Financial assets hel¢J al amortised cost comwtse cash at bank and in hand. together with trade ar other debtors. A s1C provision is made for debts for whth recoverality is in ¢Joubl. Cash at bank and in hand is defined as all cash held in instant access bank accounts and used as w(yking caprtal. Financial liabilities held at amortised cost comwise al (%lI0rS except social security, other taxes and fees recewed in advance. Charllable actlvltles- fees recolvable 2021 2020 Fees recelvable comprls•: Sch¢)ol féas 24,303,928 22,069,429 Allowan¢ Bursaries. clergy and concess#)nary fees S¢holarships arnl exhibitK)n awards (3,064,527) (2,788.7541 (1,304,410) {1,217,3771 19.934.991 18.063.298 Add back: Bursaries. scholarships awards paid for by sIrted ld$ 132,799 68.517 20,067,790 18.131,815 Scholarships, bursaries and exhilmtson awards paid for out of Restricted funds were £132,799 (2020: £68.5171.
THE DEAN CLOSE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 (CONTINUED Income from subsldlars tradlng actlvltles The Charity owns the whole of the ordinary share caprtal of Dean Close Services Limited {regi$tered numbw 02627579, registered offKe Shelburne Road. Cheltenham. GL51 6HE}, whose trading activities ilUde the Sc1 sp$. and management and lettirwJ of facilities on bthalf of the Charity as the Bacon Th8atre. The following tradiTrJ results for the subsidiary a 1rt0rFrattrj In the Consolidated Statement of Financial LtivleS. 2021 2020 Turnover Cost of salas 387.122 459,564 (141.453) {139,905) Gross wofrt Administrative expenses Governar costs 245.669 319,659 (209.418) 1270,984) 11.850) 11,850) Operating prorrt Donat#)n made under gift abj to the FindatiOn 34.401 {34.401) 46,825 (49.7781 Relained loss fcy th8 financial year {2,9531 Total assets 322.129 262.051 Total liabltieS 194.180 134.102 Share capital Profil and knss acc(wnt 120.0(10 7.949 120.000 7.949 Shareholder's funds 127.949 127.949 The subsidiary donated taxabl8 to the Charity of £34.401 12020: £49,778) undtr the Gift Ah Scheme. Induded in adrr4nistratp)n ewses ¥e £184.710 {2020: £204.901) pavJ to Tr Dean Close Foundatn. These Iransactims wtre diminated on consol#Jation. At the year end. £14.004 was owed by The Dean Close Foundation {2020.. £29.024}.
THE DEAN CLOSE FOUNDATION NOTES TO THE FINANCIAL STATEMEKfs FOR THE YEAR ENDED 31 AUGUST 2021 CONTINUED) Income from subsldlarfs tradlng a¢fjviU•s (continued) The Charity owns the whole of the rxdinary share capital of Dean Clo$8 Nurseries Limited (registered number 09635445. registered offKe Shelbume Road. Choltenham, GL51 6HEI, whose trading aclNlties during year under revi Irlde the Frni5i0n of nursery care operatirwJ from fve srtes. The following trading results for the subsKliary are included in the Consolwjaled Stalemenl of Financial Activities.. 2021 2020 Turnover Operating expenses 3,650,163 1165,370) 2.833.681 1161,6521 Gross profrt Govemment an1 irwme Adminislratwe expenses Govemance cosls 3,484,793 2,672.029 2,704 239,474 (2,752.61n 12.610.816) (3.350) {3.3501 Operating DonatK)n made under gift aKI to the Foundal#)n 731,530 297.337 (731.530) 1297.3371 Retained wofit fty the financial ye Tolal assets 1.068.832 1.064.712 Total liabilities 112.883 108,763 Share capital Profit and loss account 10.000 10,000 945,949 945.949 SharelKJlderfs funds 955.949 955.949 The subsidiary donated £731,530 (2020.. £297.3371 laxable woffts lo the Charty under Ihe Gfft Schem8. Included in adminiStratn expenses are £2.226.933 (2020.. £2,307.4381 paid to The Dean Close Foundation. These transactions were eliminaled on consolidan. At the year end, £868,208 12020.. £869.4021 was owed ty The Dean Cbse Foundation.
THE DEAN CLOSE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 CONTINUED) Income from subddlary's tradlng actlvitses (eontlnued) On 1 September 2017. Ihe Foundation acquired the whde of the ordinary share capital of Nursery Childcare Services (UK) Limited (registered numb8r 04344654. registered office 67, Lansdown Road. CheMenh8m. GL51 6QD}. w8 aotivrtw used to comprise the FvIsion of nursery child<are operatiNJ from iwo siles tradiThJ under the name of TreeTops. On 1 September 2017, the tradg. as$ets and liabilities of Nursery Chiklcare knices (UK) Limited were transferred to Dean Close Nurseries Limited {see te 3b) arKI it ha$ not traded sirKe this dal8. On 28 April 2020 an application was made to diSsoe Nurswy Child¢are SeNices {UK) Limited and the company was duty dissolved on 6 October 2020. Charltable actlvftles - anclllary trading incom• 2021 2020 Registralh)n fees Holhjay courses Puwls insurance discounts Sundry receipts Sctrb)ol trips and aclivities 36.355 130,650 12,529 68,483 13.800 37.372 16.482 119.833 82.675 261,817 256.362 Not Incomlngl(outgolng) rnsourcos This is ststed after chargirW(¢redibThJl: Group 2021 Foundatlon 2021 Group 2020 Foundation 2020 Deweciation of tarvJible ffixed assets 1221,n7 1.175.416 1,217.966 1.172.037 AnKvtisation of gcrtyjwill 110,888 110.886 Aff*Misation of negative dwill 11643) 12.fA3) Auditcff's remUnwatic). - Fees payable for the audit of the financial statements - Tax and other advisory 26,550 21.350 24,550 19.350 2.lY)O Operatiro leases: - Plant and Ma¢hin . Property 24.767 301.659 24,237 301,659 320.919 320,919 Interest payable 254.683 254,683 217,121 217,121 Lossl{profitl on distM)sal (rf tangible fixed assets 3.160 3,160 {)} {900)
THE DEAN CLOSE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 (CONTINUED) Staff costs 2021 2020 Wages and salaries ial security costs Pension Contributior - Teachers. Pertsion Scheme Pension contributions- other Other costs 13,696.790 13,427.845 1,178.842 1.133.404 1,611.620 1.631.548 213,742 205.176 83,740 142.115 Total direct costs of employm8nt 16,784,734 16,540.088 2021 2020 Aggregate employee- benefits of key management Kwsonnel 741300 681.346 The average number of staff the ye¥ was: 2021 Headcount 2020 Headcounl Teaching Staff Nursery Staff Administration SUPF#Xt: Welfare Premises Support Administration of 315 136 134 86 26 109 25 673 The number of high paid rybye¢s was: 2021 2020 No. £60.001- £70.OIXI £70.001- £80,000 £80,001- £90,000 £100,001- £110.000 £130,001- £140,000 £140,001- £150.0(KI 10 In the year. contributions were made f(x 12 12020.13) hw3her paKI employees, to the Teachers, Pension Scheme. a defined benefft scheme and contributions were made for 312020: 11 higher pald employee to a defined contribution scheme. Th& Truste6s receNed £Nil {2020.' £Nil) remuneration duriThJ the year. During Ihe year. there were redundancy or lerminalion payments made whl¢h amounted to £82,081 (2020.. £142.2481. At the year end £11.592 was outstsndir¥J (2020: £58.5411.
THE DEAN CLOSE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 (CONTINUED) 7 la) Analysis of oxpondlturn Tolal 2021 Totsl 2020 Staff costs Costs of gonoratlng fun(ts Trading costs Financing costs Investment management fe8S D8velopmenl costs 2292.965 934.T11 284.242 46,322 3,274.058 284.242 3.234,059 234,641 22.004 13.423 22.004 76.073 19,275 1(KJ,079 62.650 Totsl costs of generatlng fund8 2.355.615 1.254.440 46,322 3,656.377 3,588,054 Charflabl• actlvltles Educatlon and grant maklry Teaching Welfare Premises Suppc¥t costs and governance Grants. awards aThJ wiles 10.804,378 364,758 788,857 1,553,833 525,994 1,690,254 11.169.136 11,309,319 2,342.690 1,967,252 2.914.216 2,627,694 697.968 2,309.890 2,081,721 132,799 477.447 4.869.058 132.799 4,646.506 68,517 Total charltable 0xpendIre 14,429,119 5,823,365 1,175.415 21A27.899 20,619,288 Tolal expended 16,784,734 7,077.805 1221.737 25.084.276 24,207,342 7 (b) Governance Includod in support costs 2021 2020 Remuneration paid lo auditor Reimbursement of personal @Se5 to Trustees Other governare costs 26.550 735 5.018 24.550 3.115 5,772 32.303 33,437 Of th8 Trustees 2 {2020.'41 received a lotal of £735 (2020: £3,115} in respect of repayment of travgl aTrJ accomrd3.on costs and atterKlance at training and confere.
' THE DEAN CLOSE FOUNDATION NOTES TO THE FINANCIAL STATEMEKfs FOR THE YEAR ENDED 31 AUGUST 2021 CONTINUED) Intanglble fixed assets- Group o Total Goodwlll Cost At 1 September 2020 arKI 31 Awust 2021 1.108.881 Amortlsatlon At 1 September 2020 Charge for the year 332.664 110.888 At 31 August 2021 443.552 Net book value At 31 August 2021 665,329 At 31 August 2020 776,217 Goodwill arose from the acquisilN)n of the shares in Nursery Childcare Services (UK) Limiled on 1 September 2018, which held iwo Fr1ble nurseries which w¥e transferred to another group entity. Goodwill is anthised over the Trustees. estimale of its useful life of 10 yews.
THE DEAN CLOSE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 CONTINUED) Negatlve goodwlll - Group and Foundatlon Total Negatlve Goodwlll Cost At 1 September 2020 Arising on acquisitM)n {79,313) At 31 Augusl 2021 (79.313) Amortlsatlon Al 1 September 2020 Credit for the year 2,643 31 August 2021 2.643 Net book valu• At 31 August 2021 (76.670 At 31 August 2020 Negalwe g)odwill arose from the Ik8set Purchase of Airthrie Schwl LLP on 5 Juty 2021. These assets are included in the financial statements at fair value of £2.079,313 together bwth associated cosls and are in respect of tangible fixed assets (see note 10). The drf1efere betsveen the valuation and purchase price resultod in negative goodwill of £79.313. This sum is being credited back lo inwrrthng resources in the Slalement of Financial P£bvities over a S year perwjl on a stra*Jht line basis.
THE DEAN CLOSE FOUNDATION NOTES TO THE FINANCIAL STATEMENfs FOR THE YEAR ENDED 31 AUGUST 2021 {CONTINUED 10 Tanglble flx•d assets - Group Freehold Assels Flxtures land and under and Plant and property constructlon flttlngs •qulpm•nt Total Cost Al 1 Seplemb¥ 2020 Additions Additions la¢quisitKJn) Disp05als 34.365,202 888,539 2,115,260 70,248 3.017.481 4.462.648 41,915.579 1.185.440 518,262 407.858 3,000.099 14.759 14.554 2,144.573 (7.6421 (441.4151 1148.3701 (597.427) At 31 August 2021 37,369.001 1.248.046 3.109.087 4.736.690 46,462.824 Doproclatlon At 1 Septembw 2020 Charge for Ihe year DisFthals 8.923.035 697.964 2.205.235 2.725.730 13,854,000 258.732 265.041 1,221,737 (441.415) 1141.281) 1582,696) At 31 August 2021 9.620.999 1022,552 2,849,490 14493.041 Net book value At 31 August 2021 27.748.002 1248,046 1.086,535 1.887.200 31.969.783 Ai 31 Augu$l 2020 25.442.167 70.248 812,246 1,736,918 28.061.579 Tanglble fixed as80ts- The t)ean Close Foundation Freehold land and undor property construcllon Flxtures and Plant and ffttlngs gqulpm8Dt Tolal Cost At 1 Septenknr 2020 Athlitions Additions (acqutsitM)nl Disposals 34.365.202 888.539 2.115.260 70.248 1.185.440 2.834.234 4.351,504 480,874 300.946 14.759 14,554 (441,415) 1140,356) 41.621.188 2.855,799 2.144.573 (589,413) (7.642) At 31 Augus12021 37,369.001 1248.046 1888.452 4.526.648 46,032,147 Oepre¢latlon At 1 September 2020 Charge for the year Disposals 8.923,035 697,965 2.123.913 2.628.742 221.712 255.739 (441.415) (133.2671 13,675,690 1.175.416 {574.6821 At 31 August 2021 9.621.000 1,904,210 2,751,214 14,276.424 Nel book value At 31 August 2021 27,748,001 1248.046 984.242 1.T15.434 31,755,723 At 31 August 2020 25.442.167 70,248 710.321 1.722.762 27.945.498
THE DEAN CLOSE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 CONTINUED 111a) Investments Group 2021 Group 2020 At 1 September 2020 Realised gainsl{kxses) Unre81ised gains Management fees Dwidends reinvested 2.862.746 61.963 415.138 (22,0041 63.896 2,799,635 179,024) 104,280 119,275) 57.130 Al 31 August 2021 3A81.739 2,862.746 Details of the addit$ and dbSFJsals during the year are shovm in the Cash Flow Ststewenl. These balances can be furth¥ anatysed as frA10. Group Foundatlon 2021 2021 Group 2020 Foundallon 2020 la) Investment in subsidiaries 1.741,277 1.852.185 Ib) Other Investments al market value.. Ic} Investrnents held in cash 3.290.224 3.290.224 2.727,515 2.727.515 91.515 91,515 135.231 135,231 3.381.739 5.123.016 2.862.746 4.714.911 11(b) Investments- Group Investments hekl on nofvUK stLxk markets totall8d £704,536 (2020.. £1.243.1851. Within the investrnent portfdio the Charity hokjs 515 units of EdgewocKI L S8t Fund (US Select Growlhl with a market value of £188.04612020: 33.280 units of Fundsmth LLP Equity I Income with a market value of £159.9101. There are no other Specif investrnents whth represent mcrt than 5% of the overall investrnent F4yttolio. The market values of qwted investr)*nts held at 31 Au9USt 2021 are based upon stock market quoted price5 at the year end dale. 11 (c) Investment income 2021 2020 Dividends from managed fund$ Interest on govemment stocks Interest on cash deposits Rental income on FYOP 65,808 187 56.841 93 214 33,500 33,500 99,495 90.648 an
THE DEAN CLOSE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 CONTINUED 12 Deblors Group Foundatlon 2021 2021 Group 2020 Foundation 2020 and extras lths provision fr bad debts) Other debtors Prepayments arKI accrued incor 1.035.390 143.588 427,707 1,000,651 71,868 375,900 905,785 207, 522.127 887.836 167,478 479.295 1.606.685 1,448,419 1,635,878 1.534.609 Fee$ and extras are staled after impalm rrriiorts tolallirwj £415,41112020: £334.444}. 13 Credltors: amounts falllng due wlthln one year Group Foundatlon 2021 2021 Group 2020 Foundation 2020 Bank loans (see note 141 Other kjan (see note 14} Bank overdraft Fees received in 8dvarKe Trade credilcys ArUnIS owed to subsidiaries Taxation and social securty Other creditc Accruals and deferr&l income Deposits hekl 385,000 71,376 19,801 2,139.233 813.235 385.000 71.376 19.801 2.139.233 738.298 882.212 2.200.319 280.200 668.066 2.235,923 411.134 1,865.922 714.147 411,134 1,865,922 654,374 898,426 1,637,997 359,045 217,725 2,092,282 2,200.319 300,983 879,409 2.235.923 1,637.997 399.180 360.681 2,092.282 9.045279 589.474 9.620,428 589.474 7,481,343 537,784 8,136.905 537.784 Cony)wti(M) fee5 {$eg note 15) 9.634.753 10,209,902 8,019,127 8.674,689
THE DEAN CLOSE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 CONTINUED 14 Crodltors: amounts falllng due after more than ono year Group Foundatlon 2021 2021 Group 2020 Foundation 2020 eank thns (see bek)w) Other loan (see below) Composition fees <te 15) 7.314.800 1.750.000 998.324 7.314,800 1,750.000 998.324 7,699,800 7.699.800 $84,928 584,928 10.063.124 10,063,124 8284.728 8.284,728 The bank loan is repayable ty #talments 2021 2020 Over S yea Within 2 10 5 yews Within 110 2 yews 5,774.BOO 1.155.000 385.000 6.159.840 1,154,970 384,990 7.314.800 385.000 7,699,8C Within l year (note 13) 7.699.800 7,699.800 On 5 Felary 2021. f1 repayment Im were agreed relatirKJ to the existing bank of £7.699.800. The maximum facility limit is £7.7m which 1$ repayable in 60 instalments of £128,333.34 payable on 31 January, 30 Awil arKI 30 September of each year. The interest Tate on the k)an is 1.98% above Bank of EnglarKI Base Rate. The loan is SeCud on certain freehold properties. On 7 September 2021. a furth8r ban of £750.000 was agreed whth was drawn down on 27 September 2021 with the furnls credited lo the bank current account. this sum having been drawn from the bank overdraft facilty in July 2021 lo finance the purchase of a property. The loan is payable over a 3 year term coMmer1ftg on 27 Oelober 2021 in 35 monthly instslments of £3.819.42 {capital and int8restl with the remainirKJ balance due no later than 27 September 2024. The interest rate on the loan is 1.97% over the Bank of England Base Rate. The loan is secured on certain freehold properties. The other loan repayable by instalments 2021 2020 Over 5 years Within 2 to 5 years Within 1 lo 2 years 1.275.000 375.000 100.000 1.750.IX)O 71.376 Within 1 year {le 14) 1.821,376 The other k)an is in respect of the $Èt Purchase of Airthrie SchcM)l LLP and is secured certain freel)old propety. The loan is repayable over 8 15 year term with annual repayrrEnts commenclng on 5 Juw 2022. The interest rate is fixgj at 1%. 4?
THE DEAN CLOSE FOUNDATION NOTES TO THE FINANCIAL STATEMENfs FOR THE YEAR ENDED 31 AUGUST 2021 CONTINUED 15 Crnditors: composltlon fees Parents may pay the school tuition fees in advance. The nneY may be returned subject to specifi¢ conditions. Assumiry pupils wll remain in the Chanty's s¢1$, the amounts due will be applied as f(Alows: Group and Group arKI Foundatlon Foundation 2021 2020 Grealer than S years Wrthin 2 10 5 years Wrthin 1 to 2 years 41.504 504.155 34.318 340.393 210.217 998.324 389.474 584.928 537,784 Wrthin 1 yew {se8 note 13) 1.587.798 1.122,712 Disc¢wnls are given on comFX)Sitk)n fee lUnts in a¢c4ydarKe with the rate as set out in the indNidual sw3ned agreements. Th8 balanc8 r8wesents the accrued liabilty under Ihe c(thcts. The ements during the year Balance al 1 Sepleth 2020 New contracts Refunds Amounts ulilised in payment of fees lo the Charity Discounts gNen 1,122,712 1,312,220 (159.1371 (708,7741 20.777 Balance at 31 August 2021 1.587.798 4.9
THE DEAN CLOSE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 CONTINUED 16 Flnanclal Instruments Group Foundatlon 2021 2021 Group 2020 Foundation 2020 FInarla1 assets ThEasured al fair value 3.381.739 3,381,739 2.862.746 2.862,746 FInarla1 assets held at far value wKlude assets hekj as irrrfestrTh8nts 17 Net a$8els of the funds of Ihe Group and The t)ean Clo80 Foundatlon The net assets hekl as at 31 August 2021 the Ywiou$ furbJ$ are as folh)ws: Goodwlll Flxod a$t8 on and consolldatlon Inv•stm•nts N•t current assetsl Long tenn Ilabllltles Total Endowed funds Restricted funds General fijnds 530.587 759.346 35.512.136 530,587 759.346 {8.703.5811 (10,063,124) 16,745,431 Foundation 36.802.069 {8.703.581} {10,063.124) 18,035,364 Subsi(*ary and other funds {945.947) 214.059 869.837 137,949 Consolidation adjustrnents 1.611.276 {1.741.276) {130,000) Group 665.329 35.274.852 (7.833.744) (10,063,124) 18,043,313
THE DEAN CLOSE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 CONTINUED 17 Net assets of tho funds of the Group and the Dean Close Foundallon (contlnued) Go¢Klwlll Flxod •$sots N•t curr•nt on and avJetsl consolldatlon In8&Thts Illabllltlosl Long lonn Ilabllltles ComparalNe 2020 Total Endowed Thjs Restricted funds General funds 550.238 271.853 31.838.318 {7.028,575) {8,284,7281 550.238 271.853 16,525.015 Foundation 32.660.409 {7,028,575) {8,284,7281 17,347,106 Subsidiary and other funds 1945.947) 116.080 967,815 137.948 Consolidation adjustsnents 1.722.164 (1.852,1641 {130.0001 GrP 776.217 30.924,325 (6,(o,760) {8,284,7281 17.355.054 17{a) Endowed funds: Movements In the year {Group and Foundation) Balanco at31 August 2021 Balar9 al 1 September Incomlng 2020 endowm•nts Amounts •xpended TAn$fvr5 PerMarn1 end(rwm8nts: Arts Council Grant 550.238 {19.651) 530.587 The grant receNed from the Arts Council in re$t of the constrL)Ction in 1997 of the new Music S¢h¢)ol amount1 to £982.561. This is beirvJ arThytised over the useful lrfe of the Mustc School, with the amcrti$ation ch¥ge of £19.651 the year beirKJ transferred to unrestricted funds. The ant is an end1nI fvrKJ by vrlue (rf its purFX)se beirNJ to F*ovide Arts in the communty by buihjing the MUS School and sut4.ect to certain cOndr()nS being rrt. Balance at31 Au9USt 2020 CwalNe 2020 Bala at 1 September Incomlng 2019 endowments Amounts exp•nd•d Transf•rg Permanent endthIrrnts: Arts Council Grant 569.889 (19,651} 550.238
THE DEAN CLOSE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 CONTINUED 17(b) Restrlcted funds: Movements In the year {Group and Foundatlon) Transfers and Investment galns Balanco at31 August 2021 Balance at 1 September Incomlng Amounts 2020 resour$ exp•nd Prlze. Scholarships and other funds QU Redevelopment Private Family Charitable TTUSt 258.949 112.927 498.635 1138.7961 14.727 247.807 498.635 12.904 12,904 271.853 611.562 (138,796} 14.727 759,346 Prlze. Scholarships and other funds Consist of a number of individual bequest5 received from indNidual donor$ and are utilised in accordance wih dorN)rs' wishes. The Quad Redev81opment fund Con$1 of a numbw of indNidual donations received from indivKJual ¢Yonors and are utili5ed in accordance with donors. wishes lo assist with the fundiThJ of the AcademK Quad Redevglopmenl at the SenK)r School. Transfws
nd
Inlment gains 8alanc• at31 August 2020 Comparative FurK15 2020 Balar al 1 September Incomlng Amounts 2019 rnsources exponded Chapd Organ Campawn Fund Prize. Srholarships and oth funds Private Family Chartlable Trust 4.736 14.7361 220.438 137,966 (70.7561 {28.699) 258.949 15.424 12.520) 12.904 240.598 137. (73,276) 133,435) 271.853
THE DEAN CLOSE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 CONTINUED 17(c) Unrestrfcled funds: Movemonts in tho year Balarte al 1 September Incornlng 2020 rUrceS Transfers and Balanc• at Investment 31 August galns 2021 Amounts •xpended General fund 16.532. 24.683.872 (24.945.480) 482,025 16.753,380 The General fund includes £16.745.431 (2020: £16,525,015) net assets in resFect of funds held by th& FOUndatn. On Consdldatn. atrbjrtisalion of g(M)hYill totalling £110.888 was added lo the arrw)unts expended which is included in Ihe foure atove. Transfers and Investment gains within the General fund irtlude £19.651 transferred from erthw&J furNJs. Further details of th8 transfers are included in note$ 170 aThJ ln). Balarte al 1 Sèptember Incomlng 2019 wesourcos Translers and Balan at Investment 31 August galns 2020 Comparative 2020 Amounts expgnded General fund 17.661,607 22.927,066 124.134.066) 78.356 16.532,963 18 Capltal commitments The Group aThJ Foundal*)n had cawtsl commitments at 31 ALffjUSt 2021 Contract for but not provided in these accounts for freehc4d rn of £148.397 (2020 £Nill 19 Operatlng lease commltments The total future miiimum lease payments uThler rwrtdbble operating18ases are as follows.. Group Foundatlon 2021 2021 Group 2020 Foundation 2020 Expiring within 1 year Expiring within 110 5 years Exp greater than S years 322.107 1,153,350 1,560.000 321107 1.153.350 1.560.000 301.659 1.190.400 1.158.150 301,659 1.190.400 1,158.150 d7
THE DEAN CLOSE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 CONTINUED 20 Ponslon Schemes The Charty participates in the Teachers, Plon Scheme fthe TPS'I for the rnajority of ils teaGhing staff. The pension charge for the year includes employer conlritrmjlions payable to the TPS of £1.811.620 {2020'. £1,631,548) arKJ al the Y¥d £189.517 (2020: £180.927) was accrued in respect of contributions lo Ihis scherne. The TPS is an unfvnded mumi-employer defined benefits pension scheme governed by The Teach¢rs' Pensiorts Regulations 2010 {as amended) and The Teachers. Pension Scheme Regulations 2014 (as amended). Mernbers contribute on a 'pay as you w" basis wilh contributions from members and the empknyer being credited lo the ExdNuer. Retirement and other pens benefits are paid by publ funds provided ty Parliament. employer contribulion rate is set by the Secretary of Stsle foNowing scheme valuatK)ns undertaken by the Govemment Actuary's Department. The most recent actuarial valuation of the TPS was wepared as al 31 March 2016 and the valUan ReFxi. which was published in March 2019. confirmed that the employer contribution rate the TPS would irKrease from 16.4% to 23.6% from 1 September 2019. Errphjyers are also required to pay a Sche administra1k levy of 0.08% giving a total employer Gonlribukn'on rate Lrf 23.68%. The 31 March 2016 ValuatN)n ReFxy1 was prepared in xcrydarKe with the benefits sel oul in the schefne regulations and under the aprffoach specified in the DIrtIOns, a$ they applied at 5 March 2019. However. the assumptions wwe considered and set by the Department for Education prior to the ruliThJ in the 'McCloudlSargeant case.. This case has required the UrtS lo consider cases regarding the iMeMental10n of the 2015 reforms to publ Servte PensK)ns includiThJ Ihe Teachers, Pension$. On 27 June 2019 the Suweme Court denied th8 go¥wnnI permissw to appeal the Court of Appeal's judgment ihat transtlional provisiorts intr(Kluced to the refomwl pension schemes in 2015 gave rise to unlawful age discrimination. The governrrnt is respecting the Courvs decision and has said it will engage fully wtlh th8 Effployment Tril)unal a$ well as employer and member representatives to aee how the discriminations will be remedied. The Govemmenl announced on 4 February 2021 that it intends io pycceed with a deferred choKe Urer which members will be able lo hoose either legw or refomied scheme benefits in respect of their Ser¥e during the peric#J between 1 2015 and 31 March 2022 at th8 Int th become payable. Thg TPS is Sublt to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheTh costs. Th8 Chf Secrelary lo the Treasury. having in 2018 announced that there would be a review of this cost cap mechanism. in January 2019 announced a pause lo the co$t cap mechanism fOll1rj th8 Cwrt of Appeal's ruling in the Mccloudlsargeant Gase and until there is certainty aul Ihe value of pensK)ns to employees from April 2015 onwards. The pause was lifted in Juty 2020. and a consultation was launched on 24 June on proposed changes 10 thg ¢ontrol mechanism fdlowiro a reviww by the Government Actuary. The consultation ch)sed to response on 19 August 2021 aThJ the Govemmenl is Cuenty arkgtysirKJ the responses. In view of the atJve rulings arKI decisions the assumptions used in the 31 March 2016 Actuarial ValLbation may become inappropriate. In this scenario, a valuati¢)n prepared in accordance with rovised benefrts and suitabty rised assumptions woukl yEld different results than ttK)se contained in Ihe A¢luarial Valuation. Until the cost cap mechanism revie4V 15 coryleted it is not posslble to conclude on ary financial npa¢l or future changes to lh8 C(trIbution rat8s of the TPS. Accordingty. no provision for any additional past benefit pens costs is IUded in these finan¢bal statements. The Charity also operates t w(Wace pension sd*mes on a defined contribution basis. Employer conlritrmjtions for the year amounted to £213.742 (2020.. £205.176). and at the year-er £39,49512020'. £35.842) was accrued in respect of ¢ontrbuknons to this scheme. aR
THE DEAN CLOSE FOUNDATION NOTES TO THE FINANCIAL STATEMEKfs FOR THE YEAR ENDED 31 AUGUST 2021 CONTINUED 21 Related party transactlons In accordance with CC29 - cOnflts of interest.. A guKle fty Charity Trustees. certain transactions between Tnjstees and the Charty are disclosable. The Charty is a membtr of the ASSlaIm)n of Goveming B(yJles of Independent Schools (AGBISI which provides various membership rights. There was a refund of £185 relating lo the attendance at seminars during the year12020: cost of £185). The Chief Exe¢utpie of AGBIS was a Trustee of the Charity until he retired as a Truslee on 1 February 2020. Total donations of £2.335 were received from 3 Trustees during the year (2020: £Nill. Apart from the aforemenlK)ned items. there we no related paty traaCtIOnS in the year or prior yèar. 7Mth the exception of those Truslees and key management who have children attending the Charity's s¢lK)ols. Schcd fees ir•)Jrred by Trustees are paid on a Commercial ar[r. length basls. whilst key management Can benefit from a staff cOSsion that can be avalble to all eligibl8 members of staff who have children atteThJing the FourMlath)n. See note 3la). 3lbl and 3lc} for details of the transactions whh look place beeen the Charty and its wholty owned subsidiaries, Dean Cbse Llmiled. Dean Close Nurseries Limited and NLbrsery ChildcaTe sICes {UK) LIed in the year and any amunts outstandirrfj al the yew eThJ. The Ministry ol Dofence provides some fundirvJ each year for the purposes of the Dean Close Cornbined Cadet Force ICCF}. A separate CCF bank accounl is held by the Charty. The CCF bank account balance as al 31 August 2021 was £5.52912020: £2.863). 22 Analysls of changes In net debt (Group) Balan¢¢ at 1 S•pt8mbttr 2020 Cash flows Other non- B•lance a¢ cash 31 August changes 2021 Cash and cash equl¥al•nts Cash Overdraft 187,060 (411.1341 (112.7671 391.333 74.293 (19.801) (224.074) 278,566 54M92 Borrowlngs Debt due within one year Debt due after one year 128,624) (427.7521 (456,376) {1.365.000> 19,064,800) (7,699.800) (7,699.800) 128.6241 {1.792.752) 19.521.176) Total (7.923.874) 249.942 11,792,752) {9.466.6841
THE DEAN CLOSE FOUNDATION NOTES TO THE HNANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 cop¥riNUEO 23 Consolldated Statement of Finan¢lal Adlvltles- Comparative figur•$ by fund U9strICd Restricted EThJowed funds funds funds 2020 2020 2020 Total 2020 Income from: Charltablo actlvltles School fees receNable knillary trading income Government grant irorne Other tradlng actlvlt19S Non-ancillary trading YKome Investments Investment IrQme Bank arKI other interest Voluntary sources Grants donalwjns 18.131.815 256.362 1.155.464 18.131.815 256.362 1.155.464 3.293.245 3.293.245 11(¢) 55.304 31.876 90.648 31.876 3.(XlO 102.622 105.622 Total In¢omlng TOr¢•8 22.927,066 137.966 23.065.032 Expgndlturo on: Ralslng funds Non-ancillary trading Financing costs Investment management Fundraising and devek)pftt 3,234.059 234,641 18,680 11x1,079 3.234.059 234,641 19,275 100,079 595 Total dedu¢tlbh ¢osts 3.587.459 595 3.588,054 Charftsblo actlv1ti0$ Education and grant makiNJ 20.546,607 72.681 20.619.288 Total ?xponditur• 24.134,066 73.276 24,207,342 Not outgoing funds from operatlons b•foro trnnsf•r$ and Inv•stm•nt galns {1.2O7,IXjl 64.69) 11.142,310) Gains on investrnenls 24,49) 780 25.270 Transfers beiween fund$ {34.215) (19.651 > Net mov•ment In fvnds {1,128.644} 31.255 {19.651) (1.117,0401 Fund balances at 1 September 2019 17.661.607 240.598 569.889 18.472,094 Fund balanc•s at 31 August 2020 17 16.532.963 271.853 550.238 17,355,054