Company No. 10814894 Registered in England Charity No. 1174356 DULWICH PREP LONDON ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020
DULWICH PREP LONDON ANNUAL REPORT OF THE GOVERNORS YEAR ENDED 31 AUGUST 2020 The Governors present their annual report together with the audited financial statements of Dulwich Prep London I'the School") for the yearended 31 August 2020. The Governors confimi that the annual report and financial statements of Ihe School comply with the current statutory requirements, the requirements of the School's governing document and the provisions of the Statement of Recommended Practice (SORP) "A¢counling and Reporting by Charities" (Charities SORP FRS102). Status and admlnistration The School is a company limited by guarantee (Company Number 10814894} and is registered with the Charity Commission under Charity Number 1174356. The School, togetherwith Dulwich Prep Cranbrook, is a subsidiary of Dulwich Preparatory Schools Trusl ("Ihe Trust"), which is also a company limiled by guarantee and a registered charity. from whi¢h it leases its property. The thr8e entities are the Group. Governors, responsibilities The Governors (who are also d1CtOrS of the School for the purposes of company law) are responsible for preparing the Governors, report {including the strategic report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Govemors to prepare financial statements for each financial year. Under company law the Governors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the School and of the inGoming resources and application of resources, including the income and expenditure, of the School for that period. In preparing these financial slatemenls, the Governors are required to.. select suitable accounting policies and then apply them consistently- observe the methods and principles in the Charities SORP., make judgments and accounting estimates that are reasonable and prudent,. state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial stalemenls., prepare the financial statements on a going concern basis unless it is inappropriate to assum8 thal the School will continue in operation. The Governors are responsible for keeping adequate accounting records that are sufficient to show and explain the School's transactions and disclose with reasonable accuracy at any time the financial position of the School and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the School and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Each of the persons who are Governors at the time when this Governors, report is approved has confirm6d that.. so far as each Governor is aware, there is no relevant audit information of which the School's auditor is unaware, and each Govemor has taken all the steps that ought to have been taken as a Governor in order to be aware of any relevant audit information and lo establish that the School's auditor is aware of that information.
DULWICH PREP LONDON ANNUAL REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020 STRUCTURE, GOVERNANCE AND MANAGEMENT The School was created as an independent charity governed by its Articles of Association with effect from 1, September 2017. The Articles reflect the Companies Act 2006 and the Charities Act 2011 and were approved by the Charity Commission and passed by written resolution on 16th June 2017. Prior lo that date the School was part of Dulwich Preparatory Schools Trust I the Trust'l. Al its inception the umbrella charity, the Trust, donated the assets and undertakings necessary to fulfil its objects to the new charity under a Transfer of Undertakings Agreement dated 1st September 2017. The School is supported in the provision of education by the Trust from which the School leases its facilities. The Trust with Dulwich Prep London and Dulwich Prep Cranbrook make up the Group {"the Group"). Governlng Body The Governors are the trustees of Ihe School under charity law and the directors of the School under company law. All Govemors are'members" of the Trust and the School's Chairman and one other Govemor also serve as Trustees of the Trust. The members of the Governing Body who served in office as Governors during the year and subsequently are detailed below.. Mrs C C Randell T {to 31 August 2020) T {from 1 September 2020) Chaimian (to 31 August 2020) Chairman {from 1 September 20201 Mrs E K Kelleher Mrs L P H Carling AFCrow Appointed on 25 March 2020 Mrs L M Davidson DrHCADeasy J R Elzinga Dr A Lall Mrs M S Shale Vice Chairman D C S Smellie Retired on 31 August 2020 JDHSteel Trustee of the Trust Trustee of the Trust Pension Scheme Member of the Trust Finance Committee Key Management Personnel Head Master (from 1 September 2019).. Miss L A Davidson, BA (Hons), PGCE Bursar & Clerk to the Governors (to 31 December 2019).. N B Holliday, MA (Honsl Director of Finance & Clerk to the Govemors (from 1 January 2020): Mrs C A Skillings, ACA, LLB {Hons)
DULWICH PREP LONDON ANNUAL REPORT OF THE GOVERNORS {CONTINUED FOR THE YEAR ENDED 31 AUGUST 2020 Professlonal Advisers Bank8rs.' Nalwesl Bank plc, 120-122 Fenchurch Street, London EC3M 5BA Solicitors.. Farrer & Co LLP, 68 Lincoln's Inn Fields, London WC2A 3LH Audrtors.. Crowe U.K. LLP, 55 Ludgate Hill, London EC4M 7JW Management Structure The Governing Body meets a minimum ofthree limes a year, normally al least once every term. Sub-committees for specific purposes are established as and when needed. The Head Master and Clerk lo the Governors attend the Governing Body meetings and any sub-committees as required. The day-lo-day management of the School is delegated to the Head Master and Director of Finance who collectively comprise the key management personnel and are supported by the School's Senior Management Teams. The Head Master has overall responsibility for the appointment and supervision of all staff, but delegates this function lo the Director of Finance for non-academic staff. Remuneration is set by the Governing Body with the policy objective of providing appropriate incentives lo encourage enhanced performance and of rewarding fairly and responsibly individual contributions to the School's success. The appropriateness and relevance of the remuneration policy is reviewed annually, including reference to comparisons with other independent schools, lo ensure that the School remains sensitive to the broader issues of pay and employment conditions elsewhere. The School aims to recruit, subject lo experience, at the lower to medium point within a band, providing scope for rewarding excellence. Delivery of the School's charitable vision 2nd purpose is primarily dependent on the senior leadership and staff costs are the largest single element of the charitable expenditure. Governing Body Recruitment & Tralning New Governors are identified by the existing Board, supported by the Head Master and Clerk to the Governors, and appointed by the Board following agreement by the Trust. Governors serve for an initial term of four years, but may offer themselves for re-election for a second term of four years and then a final term of two year5, making ten years in total, which may only be exceeded in exceptional circumstances. New members of the Governing Body are elected on the basis of the candidates, professional qualities, experience, personal competence and the specific needs of the School. New Governors are inducted into the management and ethos of the School via a programme organised by the Head Master and Clerk lo the Governors. The Clerk to the Govemors also notifies members of the Governing Body of relevant external trustee training and information courses and seminars designed lo keep them informed and updated on current issues in the sector and regulatory requirements. Charity Code of Governance The School's Board takes its governance responsibilities seriously and aims to have a governance framework that is fit for purpose, compliant and efficient. The Board has established a solid foundation in governance in which all of ils Governors are clear about their roles and legal responsibilities, are committed to supporting the School in delivering its objects most effectively for the benefit of its beneficiaries and contributing to the School's continued improvement.
DULWICH PREP LONDON ANNUAL REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020 The Charity Governan Code has seven principles.. Organisational purpose, Leadership, Integrity, Decision making risk and control, Board effectiveness, Diversity and Openness and accountability. Complying wlh the Code is not a legal or regulatory requirement and the Code describes its aims as 'deliberately aspirational, The Board of Governors meets a very significanl proportion of the recommended and best practice for governance contained within the Charity Governance Code across the seven areas. Employment policy The School is an equal opportunities employer. Full and fair consideration is given to job appli¢ations from disabled persons and due consideration is given to their training and employment needs. Consultation with employees, or their representatives. has continued al all levels with the aim of taking the views of employees into account when decisions are made that are likely to affect their interests. Employees are made aware of the financial and economic performance of the School. Employees are also aware of the public benefit necessarily provided by the School as a charity and of their part in supporting the School's contribution to the local community. Communication with employees continues through normal management channels in a variety of foms and also through exceptional Channels to make staff aware of current issues. STRATEGIC REPORT The remainder of the report of the Governors also constitutes the strategic report for the purposes oflhe Companies Act 2006. Princlpal activity and objects of the School The objects of the charitable company are the advancement of education of children in the Uniled Kingdom and elsewhere for the public benefit principally through the operation of Dulwich Prep London and support ofthe Trust. The Governing Body is mindful of the long-standing need lo provide publi¢ benefit and of the requirements of the Charities Act 2011. In this connection the Governing Body has monitored closely the guidance on public benefil produced by the Charity Commission, together with its supplemental guidance on advancing education and on fee-charging. Aim The Governors, aim is that pupils should have every opportunity to fulfil their potential academic, artistic, dramatic, musical, sporting, social and moral - by providing a rich and dynamic curriculum, inspirational teaching, building their self-confidence, supporting their emotional, physical and intellectual needs and by inculcating a desire lo contribute to the wider community and providing the pupils with a launch pad for th8 Opportunities, responsibilities and experience of later life. Primary objectives The School seeks to achieve ils aim through the following primary objectives..
DULWICH PREP LONDON ANNUAL REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020 To welcome pupils from all backgrounds.. economic status, ethnicity, ra, religion or disability do not fomi part of the selection process. To be committed to safeguarding and promoting the welfare of the pupils and to expect all staff and volunteers lo share this Commitment. The School places great importancè on pastoral care, fostering a sense of community and good citizenship. To define how the S¢hool can educate and develop pupils lo the best of their potential and in line with the general standards achieved by their peers. To provide pupils with the opportunity to gain new experiences and take advantage of a variety of co- and extra-curricular activities to develop all aspects of their character. To welcome staff from all backgrounds.. economic status, gender, ethnicity, race, religion or disability do not form part of the selection prosS. To sel the fees at a level to ensure the financial viability of the School and al a level that is consistent with the aim of providing a first class education lo boys and girls. To provide financial support to enable children whose parents would not otherwise be able to afford the fees to benefit from an education at the School. To maintain a clear and effective management structure and the necessary support framework to meet the needs of staff and pupils alike. Strategies to achiove the primary obje¢tlves The School's Strategic Development Plan is updated and reviewed annually with input from the Governing Body. The Plan defi'nes investment initiatives and major projects in pursuit of the primary objectives. The LowerS¢hool project, which was started in July 2017 and comprised two main phases, was completed in July 2019. This project, which cost in the region of £13.5 million, was funded by the Trust. During 2019-2020 the largest project undertaken was the replacement of the Concert Hall sealing with retractable seating lo enable the hall to be used more flexibly. Publi¢ benefit The School remains committed to the aim of providing public benefit in accordance with its founding principles. The School actively supports the attainment of the highest standards of education through rigorous and continuous evaluation of quality and perfomiance. the application of best practice and a widespread desire lo improve standards. We co-operate with local schools and educational bodies in ongoing endeavours to widen public access to the schooling provided, lo optimize the use of the cultural and sporting facilities and to awaken in the pupils an awareness of the social ¢onlext of the all-round education they receive at the School. During the periods of closure or partial closure of schools due to COVID-19, the School has continued to provide on-site education for the children of key workers and for those children identified as vulnerable. Bursaries This year the School awarded means-tested bursaries tolalling about £275,000 to 23 pupils (2019.. £325,00010 27 pupils), including 12 for 70 % or more of full fees. The School continues
DULWICH PREP LONDON ANNUAL REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020 to refine means-testing through a rigorous and detailed process which includes a home visit. During the year the sch¢)ol awarded hardship bursaries of about £45,000 in total to families who were affected by Goronavirus. Emotional well-bein and mental health The School places great importance on the quality of its pastoral support and was the first preparatory school in Ihe UK to introduce Place2Be. a charity which provides embedded support for the School's pupils and provides child menlal health awareness to parents and staff. In September 2020 the School appointed a full time School Counsellor to enhance this support and the School's safeguarding provision. The School had a number of families who were bereaved by COVID-19 during lockdown and provided emotional support Whe possible and desired. The School also supported five families where pupil mental health was becoming affected by lockdown. Facilities and resources The School has engaged in a range of partnerships with local maintained schools. making facilities available to those schools and including them in teaching and educational events. French and Italian language and cultural s¢hools use the facilities on Saturdays throughout the year. The School is currently involved in sev8ral initiatives. including support of a new primary school, Paxton Green School, part of the Gypsy Hill Federation, with the involvement of senior management, the recruitment and training of teachers and the provision of a music outreach programme. Local schools and sports Clubs also use the playing fields, swimming pool {and swimming teacher) and sports hall on a regular basis. During lockdown the school provided its kitchens and worked in partnership with its catering provider Thomas Franks to support Social Kitchen, which provided lunches to vulnerable children around London. Charitable fundraisin Pupil fundraising for charitable causes is encouraged and in 2019 over £40.000 was donated to local and national charities as a result of pupil driven initiatives. The school ran a very successful H2MO event, where pupils, staff, parents, old boys and members of the community were invited to partake in a 24-hour swimathon. The school raised over £20,000 for Movember and was the highest fundraising school in the country. Moreover, the Friends of Dulwich Prep London raise funds for charity as well as making donations to the School. The School is very grateful to the Friends for all that they do. During lockdown and on going restrictions in relation to COVID-19 the school continued to fundraise remotely, including raising funds to provide laptops to a local school. The school does not engage with any external third party fundraisers. There have been no complaints in the period regarding inappropriate or intrusive contact in relation to fundraising activities.
DULWICH PREP LONDON ANNUAL REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020 Safeguarding The School has its own designated Safeguarding Governor and there is regular communicaliorl between this Governor and the School's Designated Safeguarding Lead (DSL). The DSL reports to the Board once a term and there is also an annual safeguarding audit. All Governors receive full safeguarding training when they join the Board. All ar8 required to scrulinise and approve the School's Safeguarding Policy annually. Whilst the Governors are respectful of the boundary between governance and management, they exercise appropriate oversight of safeguarding and are deliberately more visible to staff and parents, attending many school events and getting lo know notjust the Head Master and Senior Leadership team, but staff in all areas of the School. The annual safeguarding audit has provided another opportunity for personal conlacl tween Governors and staff, including support staff. As well as modelling a culture of greater openness, Govemors have in recent years prioritised thanges to make the School not only compliant but, on broader practical and cultural levels, a Safer place for the pupils. During the pandemic the School updated Safeguarding & child protection, behaviour, rewards and bullying policies, adding appendices to reflect the remote teaching and learning position. Online safely, 1..1 luilion and live streaming all required consideration and revision lo protect staff and pupils. Staff were trained lo be vigilant through live lessons. Monitoring absence. attendance and engagement was imperative for pupil safely and wellbeing. Key worker pupils were monitored by those staff on site taking into consideration hours attending, parent job anxiety, general health and wellbeing. ACHIEVEMENTS AND PERFORMANCE In 2020, 92 Year 8 boys went on to 22 different senior schools12019.' 88 and 22).. all destinations can be seen on the School website. The Year 8s of 2020 received a total offer of 8512019.. 62) scholarships and awards. The School has always considered the Importan of a broad education alongside academic achievement and half of the awards offered by these senior schools were for art, design and technology, music or sport. A further 22 boys left at the end of Year 6. The Independent Schools Inspectorate (ISI) visited in October 2018 to conduct a Focused Compliance and Educational Quality Inspection on the School. All eight standards required under the Complian section were mel,. in respect of the educational quality element of the Inspection, the S¢hool achieved the highest grade. Excellent,. In February 2020 the School closed for two days following a suspected COVID-19 case. which allowed a deep clean of the buildings. The closing of the School prepared staff for what they would need to do for students in order lo provide remote learning when the School was required to close and move fully online from 20 March 2020. The School launched an immediate programme for the final week of the Spring Term and launched DPL@home for the following term, which provided an impressive array of learning through different platforms such as exercises lo carry out at home, pre-recorded videos and live teaching. This was supported by regular conlact between staff and pupils and their parents. The online platform was also used by the children who attend Key Worker School, who returned to the School between March and July. From 1st June, following detailed risk assessments, a phased return of non-
DULWICH PREP LONDON ANNUAL REPORT OF THE GOVERNORS ICONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020 keyworker children by age groups took place. All but two year ere given the opportunity to attend school before the end of the Summer Term and the overwhelming majority did so. There is a wide variety of sport on offer at many different levels, as well as a packed list of fixtures for football, rugby and cricket. The Autumn Term saw Tribe football and rugby tournaments, inter-school fixtures, water polo matches. a biathlon, cross country, and swimming galas. During the Spring and Summer Terms, sport was hindered by the pandemic, but live Zoom keep fil sessions were held by the sports department for the boys and their families, as well as Mind Gym, which consisted of a series of lessons and podcasts which help to improve mental strength and wellbeing. The sports day this year was held virtually with boys competing independently by completing a range of tasks such as a 1 kilometre run, jumping, plank challenge and sports quiz,. the scores were then submitted and recorded to announce the winning Tribe. Once again there were some wonderful performances in the Year 8 drama pieces based on a variety ofthemes in Ihe Autumn and early Spring Term.. First Wortd Warand Time. Christmas shows included Tis the Season, Nativities and Rock the Baby. The summer productions were not able to go ahead due lo the pandemic. Music remains very strong at the School. A substantial proportion of the boys leam an instrument, some more than one. The Autumn Term began as usual with pupil concerts and a Remembrance Service in which the choir and musicians performed. Unfortunately a concert at Soulhwark Cathedral was cancelled due to safety concerns; a terrorisl attack at London Bridge on 29 November caused uneasiness about the safety of pupils, staff and parents travelling to central London. A Christmas Service was held at St Stephen's church nearby. Due to growing concerns about the coronavirus, the Spring Concert at Southwark Cathedral was postponed and the subsequent restrictions imposed in the UK meant that all performances were cancelled during the Summer Term. Trips and tours, whether lo¢al, national or international, are a regular feature of the School's calendar. There were the usual residential trips lo Sayers Croft for Year 3, Sheringham for Year 5. York for Year 6 and Pembrokeshire for Year 7. The Year 4 and Year 8 summer trips were cancelled as a result of the pandemic. Overseas destinations inc5uded Sceland and Sorrento during the Autumn Term. Other destinations closer to home included Crystal Palace Park, Eastbourne for a geography field trip. several trips to the theatre, Chessington Zoo. Rochester Castle and the Royal Courts of Justice. These visits were complemented by a very full programme of Prep+ events, together with thé Leake Lecture series and other visiting presenters and speakers during the Autumn Temi. The Board's commitment to maintaining Ihe School's eXllen is reinforced by a planned capital investment programme. As previously reported the redevelopment of the Lower School was completed in July 2019. The Lower School moved back into all its new facilities in time for the academic year 2019120.
DULWICH PREP LONDON ANNUAL REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020 FINANCIAL REVIEW The net income for the year was £14.658,90312019.' £15,544,257) and expenditure of £13,797,72412019.' £15,499,209). The net book value of fixed assets amounted lo £786,376 {2019-. £582,189). Income and expenditure in the year were lower as a result of the pandemic. The Governors agreed lo reduce fees for the Summer term by £1,550 per pupil which created a range in the reduction. depending on age, of 23-340h. There was an additional reduction for pupils in year 8 and year 4, who were unable lo attend their residential trips and for whom the School was able lo obtain refunds. In addition to the income il receives in respect of school fees the School seeks lo enhance its income through letting its facilities and through rents received for residential property. Besides asual lettings of sports facilities, classrooms and halls, Ihe School also operates a holiday activity club, AVP, which provides a wide variety of holiday adivities for children between the agesof4and 11. Reserves The Governors aim to maintain a positive level of overall reseryes and for the unrestricted reserves, excluding the pension reserve, lo be maintained at the approximate level of al least one month's expenditure to meet the day to day running costs of the School and the costs associated with the Maintenan of the fabric of its buildings. This will allow the School to ensure sufficient liquidity for normal operations. Funds held by the School at the year-end totalled £2,754,741 (2019-. £1,908,862). At the year end funds were sufficient lo ¢over two months expenditure of the day to day running costs of the School. Following the end of the academic year the School operates an ongoing policy of donating any excess surplus lo the Trust lo permit capital expenditure in support of the Trust's Schools. The Governors have considered the reserves policy in lighl of the Covid-19 pandemic and have concluded that no adjuslmenls to the policy need to be made. Having assessed the School's financial position, its plans for the foreseeable future, the risks to which it is exposed and the 5UPPOrt available from the parent Trust, the Governors are satisfied that il is appropriate lo prepare the statements on a going concern basis. Post balance sheet events In September 2020 thé Trust signed a 50 year lease extension until 2081 for the school site at 38-42 Alleyn Park, Grange Lane and the Early Years with the Dulwich Estate. Part of the agreement was that the Trust would hand Brightlands back to the Dulwich Estate and work has commenced to build a new entrance into the Early Years car park. Following an increase in the employers, contribution to the Teachers, Pension Scheme ('TPS'I in September 2019, the Governors commenced consultation on potential withdrawal from the TPS and joining the Aviva Pension Trust for Independent Schools in April 2020. The consultation was concluded in January 2021 and Ihe decision was made to leave the TPS with effect from I September 2021.
DULWICH PREP LONDON ANNUAL REPORT OF THE GOVERNORS {CONTINUED FOR THE YEAR ENDED 31 AUGUST 2020 PRINCIPAL RISKS AND UNCERTAINTIES The Governors considered the current economic and political turbulen, especially those arising from the COVID-19 crisis. the affordability of fees for parents as well as senior school entrance procedures across the independent sector to be the principal risks faced by the School. Pupil numbers are marginally lower in 2020121 Ihan in 2019120 and there is therefore no room for complacency. In order to continue to deliver an excellent standard of education the Governors increased fees in Septemb8r 2019 by 4.0%. Fees have been frozen for the year beginning September 2020. Health and Safely is a5ways a significant area for risk management. The risks range from pandemic, fire and infrastructure lo personal risks (most notably when away from Ihe campus on trips and expeditions). The level and breadth of activity at the School is impressive and the risks associated with all activities are minimised by thorough planning and risk assessmenl. Detsiled consideration of risk is undertaken for the School by the Govemors, in conjunction with the Head Master, Director of Finance and Senior Leadership Team. A risk register is maintained, reviewed termly by the Governors and updated as necessary. The risk management process and the resulting register identify risks. assess their impact and likelihood and, where necessary, recommend controls lo mitigate and monitor those risks which are assessed as high. In particular the threat arising from the increased level of lerrorisl activity in London is being kept under close review. The generic controls used by the School to minimise risk include.. detailed terms of reference together with formal agendas for Board activity-, strategic development planning. reviewed annually by the Board., comprehensive budgeting and management ac¢ounting', established organisational structures and lines of reporting., formal written policies including clear authorisation and approval levels., vetting procedures as required by law for the protection of the vulnerable. The Governors regularly review the effectiveness of current plans and strategies for managing all identified major risks for the School. Approved by the Governing Body of Dulwich Prep London, including, in their capacity as company directors, approving the Directors, and Slr8tegic Report contained therein, and signed on its behalf by.. rs K Kelle Ch Date: 10
DULWICH PREP LONDON INDEPENDENT AUDITORS REPORT FOR THE YEAR ENDED 31 AUGUST 2020 Opinion We have audited the financial statements of Dulwich Prep London for the year ended 31 August 2020 which comprise the Statement of Financial Activities, the Balance Sheet. the Cash Flow Slatement and notes lo the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland {United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the state of the charitable company's affairs as at 31 August 2020 and of its incoming resources and application of resources, including its income and expenditure for the year then ended., have been properly prepared in accordance wilh United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006. Basls for opinion We conducted our audrt in accordan with International Standards on Auditing {UK} {ISAs IUKI) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audtt of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate lo provide a basis for our opinion. Conclusions relating to going concern We have nothing to report in respect of the following matters in relation to which the ISAS (UK) require us to report to you where.. the trustees, use of the going concern basis of accounting in the preparation of the financial statements is not appropriate., or the twstees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubl about the charitable company's ability to continue to adopt the going concern basis of accounting for a period of al least twelve months from the date when the financial statements are authorised for issue. Other infomiation The trustees are responsible for the olh8r information. The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent olhetwise explicitly staled in our report. we do not express any form of assurance conclusion thereon. 11
DULWICH PREP LONDON INDEPENDENT AUDITORS REPORT FOR THE YEAR ENDED 31 AUGUST 2020 In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsislent with the financial statements or our knowledge oblained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are qUired to determine whether there is a material misstalement in the financial statements or a material misslatemenl of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinions on othèr matters prescribed by the Companles Act 2006 In our opinion based on the work undertaken in the course of our audit the information given in the trustees, report, which includes the strategic report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial slatemenls., and Ihe strategic report included within the trustees, report have been prepared in accordance with applicable legal requirements. Matters on which we are requlred to report by exception In light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors, report included within the trustees, report. We have nothing io report in respect of Ihe following malters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion.. adequate accounting records have not been kept-, or the financial statements are not in agreement with the accounting records and returns. or certain disclosures of trustees, remuneration specified by law are not made., or we have not received all the information and explanations we require for our audit. Responsibilities of trustses As explained more fully in the trustees, responsibilities statement sel out on page 1, the trustees {who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due lo fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company's abilily lo continue as a going concern, disclosing, as applicable, matters related to going concern and using the going Conrn basis of accounting unless the trustees either intend 12
DULWICH PREP LONDON INDEPENDENT AUDITORS REPORT FOR THE YEAR ENDED 31 AUGUST 2020 to liquidate the charitable company or to cease operations, or hav& no realistic alternative but to do so. Auditorfs responsibilities for the audit of the financlal statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS {UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at.. www.frc.or .uklaudilorsres onsibililies. This description forms part of our auditor's report. Use of our report This report is made solely to the charitable company's members, as a body, in accordance wilh Chapter 3 of Part 16 ofthe Companies Act 2006. Our audit work has been undertaken so that we might stale to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work. for this report, or for the opinions we have formed. Tina Ailison Senior Statutory Auditor For and on behaw of Crowo U.K. LLP Statutory Auditor London 26 March 2021 13
DULWICH PREP LONDON STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2020 (Incorporating an income and expenditure account) Total 2020 Total 2019 Notes Income from: Charltable activities.. School fees receivable other educational income Ancillary income Other tradlng activities Non-ancillary trading income Investments Bank and other interest Voluntary sources Donations and legacies Job retention scheme grant 13.248,691 304,234 255,832 14,387,512 580,448 456,265 106,417 88,376 5,048 5.153 18.912 719.769 26,503 Total income 14,658.903 15,544,257 Expenditure on: Ralslng funds Financing costs 10.485) {10,244) Total costs of raising f unds 10,485 {10,244 Charitable activities Education 13,787,239} 15,488,965) Total expenditure 113,797,724 115,499,209 Net Income 861,179 45,048 Pension scheme actuarial (loss} 15 15,300 97,600 Net movement in funds for the year 845,879 {52,552) Fund balances brought forward at I September 2019 1,908,862 1,961,414 Fund balances carried forward at 31 August 2020 2,754,741 1,906,862 The notes on pages 18 to 29 form part of these financlal statements 14
DULWICH PREP LONDON BALANCE SHEET AS AT 31 AUGUST 2020 Noles 2020 2019 FIXED ASSETS Tangible assets 786,376 582.189 CURRENT ASSETS Debtors Cash at bank and in hand 10 3,967.663 1,416,420 5,384,083 4,111,313 640,021 4,751,334 CREDITORS.. Amounts falling due within one year 11 (3,260,853) 13.209.257) NET CURRENT ASSETS 2,123,230 1,542,077 TOTAL ASSETS LESS CURRENT LIABILITIES CREDITORS.. amounts falling due after more than 1 year 2,909,606 2,124,266 12 133,7651 (78,2041 NET ASSETS EXCLUDING PENSION SCHEME LIABILITY 2,875,841 2,046,062 Defined benefit pension scheme 15 121,100 {137,200) NET ASSETS INCLUDING PENSION SCHEME LIABILITY 2,754.741 1,908,862 CHARITY FUNDS Unreslricled funds excluding pension reserve Pension reserve 2,875,841 (121,1001 2,046,062 1137,2001 TOTAL FUNDS 2,754,741 1,908.862 The fina beha cial stale enls were approved by the Governors on £SYv4 202hnd s igned on their rs K Kell airman notes on pa to 29 form part of these financial statements ny Number.. 10814894 Th Com 15
DULWICH PREP LONDON STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31 AUGUST 2020 Note 2020 2019 Net cash inflow from operations Nel cash provided by operating activities 1,105,206 414,859 Cash flows from investing actlvities: Additions lo fixed assets Investment income and bank interest received 1333,855) 5.048 1416,159) 5,153 Net cash {used In) investing activitles 1328.8071 {411,006} Change in cash and cash equivalents in the reporting period 776,399 3.853 Cash and cash equivalents at the beginning of period 640.021 636.168 Cash and cash equlvalents at the end of the reporting period 1,416,420 640,021 The notes on pages 18 to 29 form part of these financial statements 16
DULWICH PREP LONDON STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31 AUGUST 2020 2020 2019 (il Reconciliatlon of net income to net cash flow from operating activities Nel incoming reSoUrS Elimination of non-operating cash flows.. 861.179 45,048 Depreciation and amortisalion charges Investment income and bar)k interest received Decrease in debtors {Decrease)Ilncrease in creditors (excluding fees in advance scheme and deposit) Increasel{Decrease) in fees in advance scheme creditors Increase in parents, deposits Movement in defined benefit pension 129,667 185,952 {5,0481 15,153) 143,650 107,080 (159,927) 71,935 155,027 175,995) 95,150 31,4001 37,000 134,100 244,027 369,811 Net ¢ash inflow from operations 1,105.206 414.859 2020 2019 (ill Analysis of cash and cash equlvalents Cash at bank and in hand 1,416,420 640,021 17
DULWICH PREP LONDON NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020 1 ACCOUNTING POLICIES 1.1 Basis of preparatlon The financial slalements have been prepared in accordance with the Financial Reporting standard applicable in the UK and Republic of Ireland (FRS 102), the Companies Act 2006 and the Statement of Recommended Practice applicable to charities preparing their accounts in accordan with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021. The accounts are drawn up on the historical cost basis of accounting. The School is a Public Benefit Entity registered as a charity in England and Wales (charity number.. 1174356 and a company limited by guarantee, (company number.. 108148941.lts registered office is 42 Alleyn Park, Dulwich. London SE217AA. The ¢harilable company slarted trading on 1 September 2017. The ultimate parent company and controlling party of Dulwich Prep London is DuSwich Preparatory Schools Trust {"the Trust"), a charitable company incorporated in the United Kingdom {company number.. 00579923). The accounts of the School have been consolidated into the ultimate parent enlily s linancial slalements. Copies of these financial statements can be obtained from the registered office, 42 Alleyn Park, Dulwich, London SE217AA. Control is exercised by the parent company by virtue of board representation. The principal activity of the Trust is the operation of preparatory schools at Duiwich London and at Cranbrook Kenl. The objects of the Trust are the advancement of education primarily by the provision and conduct of schools in Dulwich and Cranbrook for boys and girls and by ancillary or incidental educational activities and other associated activities for the benefit of the communities. 1.2 Going Concern Having reviewed the cash position of the School together with the expected ongoing demand for places and the School's future projected cash flows, the Governors have a reasonable expectation Ihal the School has adequate resour$ to continue its activities for the foreseeable future and consider that there were no material uncertainties over the Schools's financial viability. Accordingly, they continue to adopt the going concern basis in preparing the financial slalements. 1.3 Crltical accounting Judgements and key sources of estlmatlon uncertainty In the application of the accounting policies, Trustees are required to make judgement, estimates. aNd assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered lo be relevant. Actual results may differ from these estimates. 18
DULWICH PREP LONDON NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020 1 ACCOUNTING POLICIES {CONTINUEDI The estimates and underlying assumptions are reviewed on an on90ing basis. Revisions lo accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that peri(Id, or in the period of the revision and future periods if the revision affected current and future periods. The School's liability for the Non-Te8ching Staff defined benefit pension scheme involves number of assumptions as disclosed in note 16. The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the School's financial slalemenls. In the view of the Governors, no other assumptions Conrning the future or eslimalion uncertainly affecting assets or liabilities at the balance sheet dale are likely lo result in a material adjustment to their carrying amounts in the next financial year. 1.4 Income All income is included in the slalement of financial activities when the School has enlillement to the funds, receipt is probable and the amount Can be measured with sufficient reliability. Fees consist of charges for the school year ending August, less bursaries and allowances. Fees received in advance are deferred and released lo income in the period to which the fees relate. Grant income is recognised as and when enlillemenl arises, which can be reliably quantified and benefit is probable. 1.5 Expenditure Expenditure is accrued as soon as a liability is considered probable, discounted lo present value for longer-lerm liabilities and has beertr included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly allribuled to particular activities they have been allocated on a basis consistent with the use of the resources. Support costs include all costs relating to the management, administration and running the functions of the School. Governance costs are those incurred in connection with administration of the charitable company and compliance with constitutional and slatulory requirements. 1.6 Tangible flxed assets Tangible fixed assets are staled al cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases. Fixed assets costing more than £500 are capitalised. Leasehold improvements Motor vehicles Fixtures and fittings Computer equipment 20/0 reducing balance 25,/0 reducing balance 10010 straight line 25_500/0 slraighl line 19
DULWICH PREP LONDON NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020 I ACCOUNTING POLICIES {continued} 1.7 Fund accountlng General Funds are the accumulated surplus on Ihe Schools income and expenditu account which is available for use at the discretion of the Governors in furtherance of Ihe general objectives of the charity including supporting the Trust. 1.8 Pension costs Retirement benefits to employees of the School are provided through two pension schemes. one defined benef1 and one defined contribution and the employerfs pension costs afe charged in the period in which the salaries they relate lo are payable. In addrtion the School has a legacy defi'ned benefit scheme "the Dulwich Preparatory Schools Pension Scheme" The two schemes are as follows.. (a) The Te8¢hers' Pension Scheme - This scheme is a multi-employer pension scheme.11 is not possible lo identify the School's share of the underlying assets and liabilities of the Teachers, Pension Scheme on a consistent and reasonable basis and therefore, as required by FRS102, accounts for the scheme as if il were a defined contribution scheme. The Trust's contributions, which are in accordance with the recommendations of the Government Actuary, are charged in the period in which the salaries to which they relate are payable. In January 2021 a decision was made to withdraw from this scheme with effect from 1 September 2021. Ib) The Dulwich Preparatory Schools Trust Non Teaching Staff Group Personal Pension Plan This is a defined contribution group personal pension plan with Aviva. Employer's pensions costs are charged in the period in which the salaries to which they relate are payable. The DUleh Preparatory Schools Pension Scheme - This is an occupational defined benefit scheme for non-teaching staff. The scheme is closed so there are no current service costs, other than adminislralion expenses which are borne directly by the Schools. The expected return on the scheme assets less the scheme interest costs are credited within other ntereSt. The scheme actuarial gains and losses are recognised immediately as other recognised gains and losses. The defined benefit scheme assets are measured al fair value al the balance sheet dale. Scheme liabilities are measured on an actuarial basis at the balance sheet dale using the projected unil method and discounted al a rale equivalent to the current rate of return on a high quality corporate bond of equivalent term to the scheme liabilities. The resulting defined benefit asset or liability is presented separately after other net assets on the face of the balance sheet. 20
DULWICH PREP LONDON NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020 1 ACCOUNTING POLICIES Icontlnued) 1.9 Operatlng leases Rentals under operating leases are charged on a straight-line basis over the lease term. 1.10 Financial instruments Basic financial instruments are initially recogni*d at transaction value and subsequently measured at amortised cost. Financial assets held al amortised cost comprise cash at bank and in hand, together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant access bank accounts and used as working capital. Financial liabilities held al amortised cost comprise all creditors except social security and other taxes and provisions. 1.11 Taxation The School is a registered charity No. 1174356 and as such is not liable lo United Kingdom income tax or Corporation tax on charitable activities. 21
DULWICH PREP LONDON NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020 2 FEES RECEIVABLE 2020 2019 Fees receivable consist of: School fees Less.. total awards and concessions 13,714,413 {465.723 13,248,691 14,890,667 (503.155} 14,387,512 Included within awards and concessions are means-tested bursaries totalling £275,608 which were paid lo 23 pupils12019'. £324,996 for 27 pupils). During the year, Covid hardship bursaries tolalling £46,425 were awarded to 23 pupils. 3 OTHER EDUCATIONAL INCOME 2020 2019 Entrance and registration fees Extra-curricular activities Courses and sub-lettings AVP sports activities income 39.950 113,650 85,245 65,389 304,234 31,200 182,302 178,205 188,741 580,448 4 ANCILLARY AND OTHER INCOME 2020 2019 School trips, School shop, and Other in¢ome 255,832 456,265 5 OTHER TRADING ACTIVITIES 2020 2019 Rents receivable 106,417 88,376 22
DULWICH PREP LONDON NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020 6 ANALYSIS OF EXPENDITURE Other costs staff costs Depreciatlon (Note 7} (Note 91 Total 2020 Total 2019 Raising funds Financing costs 2,300 8,185 10,485 10,244 Total costs of ralsing funds Charitable expenditure Teaching Welfare Premises Support costs Donations lo parent entity Total charitable expenditure 2,300 8.185 10,485 10,244 7.405.338 98,375 567,181 1,178.566 835,547 856,250 2,235,866 460,449 8,240,885 954,626 2.803,047 1,788,682 8,473,879 1,180,579 2,881,761 1,802,746 129,667 1,150,000 9,249,460 129,667 4,408,112 13.787,239 15,488,965 Total expenditure 9,251.760 129,667 4,416,297 13,797,724 15.499,209 Governance Included In support costs: 2020 2019 Governor costs Legal & Consultancy fees Remuneration paid to auditor for audit seNiees 5,684 3,780 15,120 7,566 3,780 14,750 7 STAFF COSTS 2020 2019 The aggregate payroll costs for the year were as follows.. Wages and salaries Social security costs Other pension costs 7,202,426 748,483 1,300,852 9,251,760 7,228,266 740,847 922.730 8,891,843 The total employment costs of key management personnel, who are considered to con51sI of the Headmaster and the Director of Finance18ursar until December 20191 was £277,77612019.' £318,936) including pension contributions of £27.55212019'. £22,412). 23
DULWICH PREP LONDON NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020 7 STAFF COSTS {CONTINUED) 2020 2019 Number of higher paid employees in bands of.. £60,001 to £70,000 £70,001 to £80,000 £100,001 to £110,000 £120,001 to £130,000 £150,001 to £160.000 14 The number with reliremenl benefits accruing in Defined Contribution schemes was of which the contributions amounted to in Defined Benefit schemes was £15,844 15 £0 10 The average number of the School's employees during the year. calculated on headcount, was.. 2020 2019 Teaching Domestic and estates Adminislrative 118 21 63 202 131 22 57 210 During the year there were redundancy or termination payments which amounted to £36,893 12019 £0) of which £nil was outstanding for payment at the year end. 8 TRUSTEE COSTS AND RELATED PARTY TRANSACTIONS During the year, no Governors received any remuneration. During the year one Governor received reimbursement of expenses for travel and subsistence tolalling £3612019.. one Governor received £1601. In the year there was £0 paid to any governors1£525 in 2019 paid to L M Davidson, a governor of the school, for assistance with the assessment of children in Early Years). In 2019120 the School donated £012019.. £1.1 million) to the Trust. The School also donated staff time to the Trust totalling £48,61812019'. £63,605} which has been recognised in these accounts as other costs. The School paid rental income of £1,235,600 (2019.. £1,225.706} for the use of rts premises. Cash resources for the Group are managed centrally by the Trust and as a consequence al 31st August 2020 £3,587,42212019'. £3.665,3411 was owed by the Trust. 24
DULWICH PREP LONDON NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020 9 Tangible Fixed Assets Leasehold Furniture Improve Fixtures and ment Equipment Computer Hardware Vehicles Total Cost Al 1 September 2019 Additions Disposal in the year At 31 August 2020 89,940 194,240 1.351.822 52,845 644.268 86,770 96.615 2,182.645 333,855 123,218 2,493,282 23,218) 73,397 284,180 1,404.667 731,038 Depreciation Al 1 September 2019 Charged in year Disposal in the year At 31 August 2020 100 996,322 53,892 518,228 68,718 85,807 4,593 23,218) 67,182 1,600,457 129,667 123,218 1,706.906 2,564 1,050,214 586,946 Net book values At 31 August 2019 At 31 August 2020 89,840 281,616 355,501 354,4S3 126,040 144,092 10,808 6,215 582,189 786.376 10 DEBTORS 2020 2019 Fee debtors Sundry debtors Prepayments and accrued income Amounts due from parent undertaking 31,062 205,281 144,393 3,586,927 3,967,663 31,708 130,730 283,234 3,665,641 4,111,313 11 CREDITORS.. amounts falling due within one year 2020 2019 Trade creditors Social security and other taxation Fees in advance Other creditors Fee deposits Accruals and deferred income 230.797 187,170 1,246,151 232,508 1.286.215 78,013 3,260,853 304.599 195,406 1,129,777 226,443 1.191.065 161,967 3,209,257 25
DULWICH PREP LONDON NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020 12 FEES IN ADVANCE 2020 2019 Within one to Iwo years 33,765 78,204 Movements in fees in advance Opening fees in advance Amount released to income during the year Amount deferred during the year 78,204 144,439} 78,204 78,204 33,765 13 OPERATING LEASE COMMITMENTS At 31 August 2020 the Company had future minimum lease payments under non-cancellable operating leases as follows.. Land and Bulldings 2020 Other Land and Buildings 2019 other 2020 2019 Within 1 year BebNeen 2 and 5 years After more than 5 years 1,250,225 4,939,400 33,599,200 164,455 258,196 1.235.600 5.044,775 34,844.050 140,691 310,215 The charge in the year was £1,395,434 {2019'. £1,417,745). 14 SUMMARY OF MOVEMENTS ON MAJOR FUNDS A11 September 2019 At31 August 2020 Incoming resources Resources expended Losses Unre51rieted Funds 1.908,862 14,658,903 113,797,724) 115,3001 2.754,741 15 PENSION SCHEMES Teachers, Pension Scheme Dulwich Prep London participates in the Teachers, Pension Scheme ('Ihe TPS'I for their teaching staff. The pension charge for the year includes contributions payable to the TPS of £1,201,18412019. £745,932) and at the year-end £132,70912019.' £102,268) was accrued in respect of contributions lo this scheme. 26
DULWICH PREP LONDON NOTES TO THE FINANCIAL STATEMENTS {CONTINUED FOR THE YEAR ENDED 31 AUGUST 2020 15 PENSION SCHEMES {Contlnuedl Defined benefit scheme The TPS is an unfunded multi-employer defined benefits pension scheme governed by The Teachers, Pensions Regulations 2010 (as amended) and The Teachers, Pensiors Scheme Regulations 2014 las amended). Members contribute on a "pay as you go" basis with contributions from members and Ihe employer being credited to the Exchequer. Retirement and other pension benefrts are paid by public funds provided by Parliament. The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary's Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2016 and the Valuation Report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.40A lo 23.6 /0 from 1 September 2019. Employer5 are also required lo pay a scheme administration levy of 0.08 /0 giving a total employer contribution rale of 23.680/0. The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied at 5 March 2019. However, the assumptions were considered and set by the Department for Education prior lo the ruling in the 'M¢CloudlSargeant case,. This case has required the courts lo consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teachers, Pensions. On 27 June 2019 the Supreme Court denied the government permission lo appeal the Court of Appeal's judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Court's decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied. A consultation was launched by the government on 16 July 2020, and closed to responses on 11 October 2020. As a result of the consullalion. the government annoUnd on 4 February 2021 that il intends to proceed with a deferred choice underpin, under which members wll be able lo choose either legacy or reformed scheme benefits in respect of their service during the period between 1 April 2015 and 31 March 2022, at the point they become payable. The TPS is subject to a cost cap mechanism which was put in place lo protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause lo the cost cap mechanism following the Court of Appeal's ruling in the Mccloudlsargeant case and until there is rtainlY about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020 and the government is preparing to complete the Cost control element of the 2016 valuations, which is expected lo be completed in 2021. 27
DULWICH PREP LONDON NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 AUGUST 2020 16 PENSION SCHEMES {CONTINUED) In view of the above rulings and decisions the assumptions used in the 31 March 2016 Actuarial Va5uation may become inappropriate. In this scenario, a valuation prepared in accordance with revised benefits and suitably revised assumptions would yield different results than those contained in the Actuarial Valuation. Until the cost cap mechanism review is completed it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly no provision for any additional past benefit pension costs is included in these financial statements. Defined contrlbution scheme The pension cost charge in the year in respect of the non-teaching staff defined contribution scheme was £156,12912019'. £104,689) Non-teaching deflned benefit scheme The parenl Trust operated Ihis Scheme (the Dulwich Preparatory Schools Pension Scheme), which was closed to new entrants from 1 January 2005, both in respect of new members and accrual for existing members. On 1 sl September 2017 the Trust transferred the obligations to conlribule to the Scheme to each of the Schools in proportions determined by the actuary based on the staff who participated in the scheme. The valuation in these accounts uses that proportion and has been derived by projecting the results of the last comprehensive actuarial valuation of the Scheme as al 1 January 2018 and has been prepared by an independent qualified actuary. Following the lalesl actuarial valuation a revised Schedule of Contributions was agreed between the Trust, the Schools and the Scheme Trustees wilh the aim of eliminating the deficit over a period of 10 years from 1 January 2018. Under this Schedule of Contributions the School expects to ¢onlribule £33.663 to the Scheme in 2021122 {£33,663 2020121}. The amounts recognised In the balance sheet are as follows 2020 2019 Present value of funded obligations Fair value of scheme assets Net {Liabililyl {670.6001 (663.500} 549.500 526.300 {121.1001 (137,2001 28
DULWICH PREP LONDON NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE PERIOD ENDED 31 AUGUST 2020 15 PENSION SCHEMES {CONTINUED) bl Changes in the present value of the deflned beneflt obligation 2020 2019 Opening defined benefit obligation Interest cost Actuarial losses Benefits paid Closing defined benefit obligation 663,500 11,700 8,900 {13,5001 670,600 543.900 13,800 109,500 13,7001 663,500 ¢1 Changes in the fair value of the scheme assets 2020 2019 Opening fair value of scheme assets Interest income Return Ilowerllgreater than the discount rate Contributions by employer Benefits paid Closing fair value of scheme assets 526,300 9,400 16,4001 33,700 113,500) 549.500 470,200 12,400 11,900 35,500 {3,700 526,300 d) The amounts included wlthin the Statement of Financial Activities 2020 2019 Interest on obligation Interest income Total amount charged to the Slalement of Financial Activities 11,700 19.400} 2,300 13,800 {12,400) 1,400 Net actuarial {lossesl recognised in the year (15.300) {97,6001 e) Prtncipal actuarlal assumptions at the balance sheet date 2020 2019 Financial Assumptions Discount rale RPI inflation assumption Rale of increase of pensions in payment Rate of increase of pensions in deferment 1.6/0 3.010 2.2¥9 2.2¥. 3.2010 Assumed life expectancy in years al age 65.. Non Pensioners Females Males Pensioners Females Males 25.4 23.4 25.4 23.4 23.9 21.9 23.9 21.9 29