Company No. 10814894 Regislered in England Charily No. 1174356 DULWICH PREP LONDON ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
DULWICH PREP LONDON ANNUAL REPORT OF THE GOVERNORS YEAR ENDED 31 AUGUST 2021 The Governors present their annual rewl tcxJether with the audited financial statements of Dulwich Prep London {'the School I for the year ended 31 August 2021. The Governors confirm that the annual report and financial statements of the School comply with the current statutory requirements, the requirements of the School's governing documenl and the provisions of the Statement of Recommended Practice ISORP) "Accounting and Reporting by Charities" (Charities SORP FRS102}. status and admlnlstration The School is a company limited by guarantee {Company Number 10814894) and is registered with the Charity Commission under Charity Number 1174356. The School, together with Dulwich Prep Cranbrook, is a subsidiary of Dulwich Preparatory Schools Trust I'the Trust"), which is also a company limited by guarantee and a registered charity, from which the School leases its property. Govemors. responslbilities The Governors {who are also directors 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 A¢pted Accounting Practice). Company law requires the Governors to prepare financial statements for each financial year. Under company law the Governors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the School and of the incoming resources and application of resources, including the income and expenditure, of the School for that period. In preparing these financial statements, the Governors are required to.. select suitable accounting policies and then apply them consistently., obseNe 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 lo any material departures disclosed and explained in the financial slalements.. prepare the financial slalements on a going concern basis unless it is inappropriaté lo assume that 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 Iransactions and disclose with reasonable accuracy al any time the financial position of the School and enable them to ensure that the financial statements compSy 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 dete¢tion of fraud and other irregularib'es. Each of the persons who is a Governor at the time when this Governors, report is approv6d has confirmed thal.. so far as each Governor is aware, there is no relevant audbt information of which the School's auditor is unaware., and each Governor has taken all the sleps that ought to have been taken as a Governor in order lo be aware of any relevant audit information and to 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 2021 STRUCTURE, GOVERNANCE AND MANAGEMENT The School was crealed as an independent charity governed by its Articles of Association with effect from 111 September 2017. The Articles reflect the Companies Act 2006 and the Charrties Act 2011 and were approved by Ihe Charity Commission and passed by written resolution on 161h June 2017. Prior to that date the School was part of the Trust. Al the School's inception, the Trust donated to the School under a Transfer of Undertakings Agreement dated 161 September 2017 the assets and undertakings necessary to fulfil ils objecls. The School is SUPPOrted in the provision of education by the Trust from which the School leases its facilities. The Trust. Dulwich Prep London and Dulwich Prep Cranbrook make up the Group l.the Group"). Governing Body The Governors are the trustees of the School under charity law and the directors of the School under company law. All Governors are "members" of the Trust and the School's Chairman and one other Governor also setve as Trustees of the Trust. The members of the Governing Body who served in Offi as Govemors during the year and subsequenlly are detailed below.. C C Randell Retired 31 August 2021 Chairman {from 1 September 2020) E K Kelleher T {from 1 September 20201 L P H Carling AFCrow L M Davidson DrHCADeasy J R Elzinga H Humphreys Dr A Lall Appointed on 9 June 2021 M S Shale Vice Chairman JDHSteel Trustee of the Trust Trustee of the Trust Pension Scheme Member of the Trust Finance Committee Key Management Personnel Head Master.. Bursar & Clerk to the Govemors.. L A Davidson, BA {Hons), PGCE C A Skillings, ACA, LLB IHons}
DULWICH PREP LONDON ANNUAL REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021 Professlonal Advisers Bankers.. Natwest Bank plc, 120-122 Fenchurch Street. London EC3M 5BA Solicitors.. Farrer & Co LLP, 66 Lincoln's Inn Fields, London WC2A 3LH Stone King, Boundary House, 91 Charterhouse Street. London, EC1M 6HR Auditors.. Crowe U.K. LLP. 55 Ludgale Hill, London EC4M 7JW Management structure The Governing Body meets a minimum of three limes a year and. since 1 September 2020, at least twice every term. Sub-committees for specific purposes are established as and when needed. The Head Master and Bursarlclerk to the Governors attend the Governing Body meetings and any sub-committees as required. The day-to-day management of the School is delegated to the Head Master and Burs8rlClerk to the Governors who collectively comprise the key management personnel and are supported by the School's Senior Leadership Team. The Head Master has overall responsibility for the appointment and supervision of all staff, bul delegates this function to the Bursar and HR Director for non-academic staff. Remuneralion is set by the Governing Body with the policy objective of providing appropriate inntiveS to encourage enhanced performance and of rewarding fairly and responsibly individual contributions lo 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. During 2021 there has been an external review of pay and benefits for all staff. The School aims to recruit. subject to experience, at the lower to medium point within a band, providing scope for rewarding excellence. Delivery of the School's charitable vision and purpose is primarily dependent on the senior leadership. Staff costs are the largest single element of the charitable expenditure. Goveming Body Re¢ruitment & Training 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 lefm of four years, bul may offer themselves for re-election for a second term of four years and then a final term of two years, making len years in lolal. 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 to the Governors. The Clerk to the Governors also notifies members of the Governing Body of relevant external Iruslee training and information ourses and seminars designed to keep them informed and updated on current issues in the sector and regulalory requirements. Charity Code of Governance The School's Board takes its governance responsibilities seriously and aims lo 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 its Governors are clear about their roles and legal responsibilities, are committed to supporting the School in delivering its objects most
DULWICH PREP LONDON ANNUAL REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021 effectively for the benefit of its beneficiaries and to contributing to the School's continued improvement. The Charity Governan Code has seven principles.. Organisational Purpose. Leadership, Integrily, Decision making. risk and control, Board effecliveness, Diversity and Openness and accountability. Complying with the Code is not a legal or regulatory requirement and the Code describes ils aims as'deliberately aspirational,. The Board of Governors meets a very significant proportion of the recommended and best practice for governance contained within the Charity Governan Code across the seven areas. Employment pollcy The School is an equal opportunities employer. Full and fair consideration is given to job applications from persons with disabilities and due consideration is given lo their training and employment needs. Consu51ation with employees, or their representatives, has continued at all levels wilh 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 Ihe 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 conlribulion to the local community. Communication with employees ¢onlinues through normal management channels in a variety of forms 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 of the Companies Act 2006. Prlncipal actlvity and objects of the School The objects of the charitable company are the advancement of education of children in the United Kingdom and elsewhere forthe public benefit principally through the operation of Dulwich Prep London and support of the Trust. The Governing Body is mindful of the long-standing need to provide public benefit and of the requirements of the Charities Act 2011. In this connection the Governing Body has monrtored closely the guidance on public benefit produced by the Charity Commission. together with ils supplemental guidance on advancing education and on fee-charging. Aim The Governors, aim is that pupils should have every opportunrty lo fulfil their potential academic, artistic, dramatic, musical, sporting, social and moral by providing a rich and dynamic curriculum, inspirational teaching, opportunities lo build their self-confidence and support for their emotional, physical and intellectual needs. The School inculcates a desire lo conlribute to the wider community and provides the pupils with a launch pad for the opportunities, responsibilities and experience of later life. The School supports this by using its values as a basis around which the curriculum and pastoral care are developed.
DULWICH PREP LONDON ANNUAL REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021 Prlmary obje¢tlves The School seeks to achieve ils aim through the following primary objectives.. To welcome pupils and staff from all backgrounds.. economic status. elhnicity, race, religion or disability do not form 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 importan on pastoral care, fostering a sense of community and good citizenship. 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 set the fees al a level lo ensure the fi'nancial viability of the School and at a level thal is consistenl with the aim of providing a first class education to boys and girls. To provide financial support lo enable children whose parents would not othetwise 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 achieve the prlmary oblectives The School's Strategic Development Plan (the "Plan l is updated and reviewed annually with input from the Governing Body. The Plan defines investment initiatives and major projects in pursuit of the PTimary objectives. During 2021 the main developments were: li} the Pre-Prep extension, which provided 0 additional classrooms., and liil surrender of the lease of Brightlands, which was used as a wrap around care facility, and establishment of a wrap around care facility at the main school sile. Public benefit The School remains committed to the aim of providing public benefit in accordan with ils founding principles. The School actively supports the attainment of the highest standards of education through rigorous and continuous evaluation of quality and performance, the application of best practice and a widespread desire to improve standards. We co-operate with local schools and educational bodies in ongoing endeavours lo widen public access lo the schooling provided, lo optimise the use of the cultural and sporting facilities and to awaken in the pupils an awareness of the social context 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 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-lested bursaries lotalling approximately £286,856 to 21 pupils (2020.. £275,608 to 23 pupils), including 15 for 700/0 or more of full fees. The School continue5 to refine means-lesting through a rigorous and detailed PrO$S which includes a home visit. During the year the School awarded hardship bursaries of approximately £65,990 (2020.. £46,425} in total to families who were affected by COVID-19.
DULWICH PREP LONDON ANNUAL REPORT OF THE GOVERNORS {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021 Sharin our 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. During this year there has been limited possibilities of having our regular French and Italian language and cultural schools on Saturdays but we are delighted to see them returning in the academic year 2021122. The School is currently involved in several initiatives, including support of a primary school, Paxton Green School. part of the Gypsy Hill Federalion, 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 ils catering provider Thomas Franks to support Social Kitchen, which provided lunches to vulnerable children around London. Charitable fundraisin Pupil fundraising for charrtable causes is encouraged and is strongly underlined by the School's values. During 2020121 the traditional methods of fundraising were curtailed due to COVID-19 but the boys did, along with the Friends of Oulwich Prep London Ilhe "Friends") and staff." (i) wrap individual gift parcels for elderly neighbours and deliver them {as an alternative to the Harvest festival and the Christmas Party),. and {ii) set up an online Advent Calendar to show the boys achievements and to encourage Christmas fundraising push Ihllp.'Ilww.dpladvent.onlinel. The School also ran clothes collections to help raise funds and donale in kind for the Aegis Trust and the Soulhwark Day Centre for Asylum seekers. The Friends raised funds through two second hand unrform Sales and donated funds to the School for the bursary fund and different areas of the School. The School is very grateful to the Friends for all that they do. The School does not eroage with any external third party fundraisers. There have been no complaints in the period regarding inappropriate or intrusive contact in relalion to fundraising activities. Pensions Following an increase in the employers, contribution lo the Teacher5, Pension Scheme I'TPS'I in September 2019, the Governors commenced consultation with employee representatives on potential withdrawal from the TPS and joining of the Aviva Pension Trust for Independent Schools in April 2020. The consullation was concluded in January 2021 and the decision was made to leave the TPS with effecl from 1 September 2021. Changes to fa¢illties In September 2020 the Trust signed agreements for 50 year lease extensions until 2081 for the school sites at 3842 Alleyn Park, Grange Lane and the Early Years with the DuVich Estate.
DULWICH PREP LONDON ANNUAL REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021 Part of the agreement was that the Trusl would hand back Brightlands to the Dulwich Estate. As a condition of the surrender of Brightlands and the grant of the new leases, the Trust carried out substantial work to build a new entrance into the Early Years car park, which completed towards the end of January 2021 and the new leases between the Dulwich Estate and the Trust were signed on 16Vb February 2021. Safe uardln The School has its own designated Safeguarding Governor and there is regular communication between this Governor and the School's Designated Safeguarding Lead l 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 are required to scrutinise and approve the School's Safeguarding Policy annually. Whilst the Governors are respectful of the boundary between governance and management. they normally exercise appropriate oversight of safeguarding and are deliberately more visible to staff and parents, by attending many school events and getting to know not just the Head Master and Senior Leadership Team. bul staff in all areas of the School. The Safeguarding Governor met regularly with the Designated Safeguarding Lead. During the academic year 2020121 school activities have been very limited and access to the site has been restricted due to the pandemic with a reduction in school events and opportunities for the Governors lo attend them. The academic year 2021122 has seen a reversion to previous activity. In the national lockdowns the school was closed to all except keyworker Children and safeguarding meetirvJs between the safeguarding governor and the DSL took place remotely twice a term during this period. As well as modelling a culture of greater openness. Govemors have in recent years priorilised changes 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 the Safeguarding (Child Protection) Policy. the Behaviour. Rewards and Sanctions Policy and the Anti-bullying Policy, adding appendices lo reflect the remote teaching and learning provision. Online safety, 1..1 tuition and live streaming all required consideration and revision to protect slaff and pupils. Staff were trained to be vigilant through online lessons. Monitoring absence, attendance and engagement was imperative for pupil safety and wellbeing. Key worker pupils were monitored by those staff on site taking into consideration hours attending, parent job anxiety, general health and wellbeing. Emotional well-bein arKI mental health The School places great importance on the quality of its pastoral support and now has a full- time counsellor on sile. The Counsellor provides child mental health awareness lo parents and staff. The School has developed a well-being suite lo provide a calm and relaxing space for the children to visit. The Counsellor runs 1..1 sessions with a few pupils as the need is identified. The School has trained a number of staff as mental health first aiders to support both the pupils and their colleagues. There is wide reaching pastoral support led by the Senior Deputy Head, Sarah Brownsdon.
DULWICH PREP LONDON ANNUAL REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021 ACHIEVEMENTS AND PERFORMANCE In 2021, 81 Year 8 boys went on to 25 different senior schools (2020.. 92 and 221.. all destinations can be seen on the School web511e. A further 22 boys left at the end of Year 6 going to 19 different schools. The Year 5 10 8 leavers of 2021 received a total offer of 75 (2020.. 851 scholarships and awards. The School has always considered the Importan of a broad education alongside academic achievement and over half of the awards offered by these senior schools were for art, design and technology. music or sport. The Independent Schools Inspectorate I'ISI") visited in October 2018 to conduct a Focused Compliance and Educational Quality Inspection on the School. All eight standards required under Ihe compliance section were met., in respect of the educational qualily element of the Inspection, the School achieved the highest grade.. 'Excellent'. The School opened in September 2020 with a detailed risk assessment for COVID-19. The pupils were taught up to Year 5 in classroom bubbles and Year 6 to 8 were laught in year group bubbles. Throughout the year the set up was varied depending on government guidance. In January 2021 the School prepared for COVID-19 testing of the Year 7 and 8s. The School closed except to key worker children in January 2021 and the whole school moved to the online learning platforms where lessons were delivered through a mixture of formats including live lessons, pre-recorded messages and pre-set work with teachers commenting as work was submitted. During this lime a number of staff, mainly support, were furloughed. The School re- opened in early March and COVID-19 lesling for the Year 7 and 8s was carried out. Internal sport at the School was very energetic, the pupils competed against each olher where they could and sports days went ahead for all year groups. However. there were no external matches during the year due lo the restrictions in place. During the Spring Term sport was hindered by the pandemic, but live Zoom keep fit 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 are designed to help lo improve mental strength and wellbeing. Drama performances were done and recorded for parents. They showed a fantastic range of skills, including the Pre-Prep children using sign language instead of singing in their Harvesl festival. There were also a range of performances including the Year 4 doing "A Chadie Brown Christmas" and the Year 8 drama projects. Music remains very strong al the School. Throughout the periods of home schooling, class music continued using Music Technology projects and most boys were able to continue instrumental lessons via Zoom. In those periods where bubbled schooling was allowed, we managed a virtual Christmas Concert, involving bubbled groups and orchestras, a somewhat premature End of Ifirsll Lockdown Concert and there were virtual pupils, concerts recorded in school for each year group for Years 5- 8. The Lower School had an end of year voluntary concert where virtual submissions were made from home. The Abrahams Piano Competition took place with Classes 1 & 2 submissions coming from home and Class 3 participants being recorded in School. The competition was adjudicated remotely by the Head of Keyboard studies at Dulwich College and then the recordings were released as concerts. In the Summer term we used the outdoor stage for some live music including a Pre Prep Strings Concert. Doorstep musicians from Years 3 - 8 offered a morning instrumental greeting on the steps at the front of school on most mornings when the School was open. Two sessions of face to face ABRSM and Trinity College music exams were able lo take place with a near 100 % pass rate and a high percentage of merit and distinction passes.
DULWICH PREP LONDON ANNUAL REPORT OF THE GOVERNORS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021 The Year 8 boys were able to do their residential trips at the end of the Summer Temi. The olher year groups took part in Challenge days where they worked as teams and these Wofked very well. FINANCIAL REVIEW The income forthe yearwas£14,358.01912020'. £14,658.903) and expenditure of£13,864,041 (2020: £13,797,724). The net book value of fixed assets amounted to £976,816 {2020.' £786,376). Income and expenditure in the year were lower as a result of the pandemic. The Governors agreed to reduce fees for the Spring term by £465 per pupil for pupils in Reception and above (Nursery year group was not required to close). There was a further reduction in the Summer term of £95 for all pupils in Reception and above and also a reduction in fees for pupils in years 4 to 7 to reflect the changes to the school residential trips. In addition to the income it receives in respect of school fees the School seeks lo enhance ils income through letting its facilities and through rents received for residential property. Besides casual lellings of sports facilities, classrooms and halls, the School also operates a holiday activity club, AVP, which provides a wide variety of holiday activities for children between the ages of 4 and 11. During 2020121 there were significant restrictions on what the School could offer to hire and run with a consequential drop in income. Reserves The Governors aim to maintain a positive level of overall reserves and for the unrestricled reserves, excluding the pension resee, to be maintained al the approximate level of at least one month's expenditure lo meet the day lo day running costs of the School and the costs associated with the maintenance of the fabric of its buildings. This will allow the School to ensure sufficient IiqLJidily for normal operations. Funds held by the School at the year-end totalled £3,419,01912020: £2,875.8411. At the year end funds were sufficient lo Cover two months, expenditure of the day to day running costs of the School. Followng the end of the academic year the School operates an ongoing policy of donating any excess surplus to the Trust lo permit capital expenditure in support of the Trust'5 schools. The Governors have considered the reserves policy in light of Ihe COVID-19 pandemic and have concluded that no adjuslmenls to Ihe policy need lo be made. Having assessed the School's financial position, ils plans for the foreseeable future, the fisks lo which il is exposed and the support available from the parent Trust. the Governors are satisfied that it is appropriate to prepare the statements on a going concern basis. Post balance sheet events In November 2021, following the extension of the leases between the Dulwich Estate and the Trust in February 2021, new leases were entered into between Dulwich Prep London and Dulwich Preparatory Schools Trust. This included the surrender of the lease for the Belws Building and Sports Hall dated 1st Seplember 2017 due lo expire in 2067 and the grant of a new lease, so that all leases held by the School will expire in 2081. The new leases took into account the building works that had been carried out on the Lower School (¢irca £14ml and the Pre- Prep I£0.5ml which were completed in August 2021.
DULWICH PREP LONDON ANNUAL REPORT OF THE GOVERNORS {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021 PRINCIPAL RISKS AND UNCERTAINTIES The Governors consider lil the current economic and political turbulence, especially that arising from the COVID-19 crisis, {ii) the affordability of fees for parents and (iiil senior school entrance procedures across the independent sector to be the principal risks faced by Ihe School. Pupil numbers were marginally lower in 2020121 than 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 September 2021 by 4.0%. Fees had been frozen for the year beginning September 2020. Health and Safely is always a significant area for risk management. The risks range from pandemic. fire and infrastructure to personal risks Imost notably when away from the campus on trips and expeditions). The Sevel and breadth of activity at the School is impressive and the risks associated with all activities are minimised by thorough planning and risk assessment. Detailed consideration of risk is undertaken forthe School by the Governors, in conjundion with the Head Master, Bursar and Senior Leadership Team. A risk register is maintained. reviewed temily by the Govemors 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 terrorist activity in London is being kept under close review. The generic controls used by the School lo minimise risk include: detailed tems of referen together with formal agendas for Board activity., strategic development planning, reviewed annually by the Board,. comprehensive budgeting and management accounting-, established organisalional structures and lines of reporting., formal written policies including clear aulhorisalion and approval levels; and velting procedures as required by law for the protection of the vulnerable. The Governors regularly review the effectiveness of Gurrent 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 Strategic Report contained therein, and signed on its behalf by.. Mrs Kelleher Chairman Lc> 10
DULWICH PREP LONDON INDEPENDENT AUDITORS REPORT FOR THE YEAR ENDED 31 AUGUST 2021 Independent Auditor's Report to the Members of Dulwich Prep London Oplnion We have audited the financial slalemenls of Dulwich Prep London, the 'charilable company, for the year ended 31 August 2021 which comprise the Statement of Financial Activrties, the Balance Sheet, the Slalement of Cash Flows and notes to the financial statements, including 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 ACpted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the stale of the charitable Company's affairs as at 31 August 2021 and of its income and expenditure, for the year then ended.. have been properly prepad in accordance with United Kingdom Generally ACpted Accounling Practice., and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinlon We conducted our audit in accordance with International Standards on Auditing IUK) (ISAS {UKII and applicable law. Our responsibilities under those standards a further described in the Auditor's responsibilities for the audit of the fi'nancial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 approprlate to provide basis for our opinion. Conclusions relating to going concern In auditing the financial statemenls, we have concluded that the trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other Information The trustees are responsib16 for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial slalements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except lo the extenl otheiSe explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other infomiation and, in doing so, consider whether the other 11
DULWICH PREP LONDON INDEPENDENT AUDITORS REPORT FOR THE YEAR ENDED 31 AUGUST 2021 information is materially inconsistent with the financial statements or our knowledge obtained in the audit or olhenmise appears lo be materially misstated. If we identify such material inconsistencies or apparent material misslatemenls, we are required lo determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Oplnlons on other matters prescribed by the Companies 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 directors, report and Ihe strategic report prepared for Ihe purposes of company law, for the financial year for which the financial slalemenls are prepared is consistent with the financial statemenls,. and the strategic report and the directors, report included within the trustees, report have been prepared in accordance with applicable legal requirements. Matters on whi¢h we are required to report by exceptlon 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 to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if. in our opinion= adequate and proper 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 trustees As explained more fully in the trustees, responsibilities statement sel out on page 4, the trustees (who are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. and for such internal control as the trustees determine is necessary lo enable the preparation of financial statements that are free from material misstatement. whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charrtable company s ability to continue as a going conceni, disclosing, a5 applicable. matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic allernalive but to do so. Auditor's responsibilities for the audit of the flnancial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misslatemenl. whether due to fraud or error, and to issue an 12
DULWICH PREP LONDON INDEPENDENT AUDITORS REPORT FOR THE YEAR ENDED 31 AUGUST 2021 auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, bul is not a guarantee that an audit conducted in accordance with ISAS (UK} will always detect a material misstatement when it exist5. 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 finan¢i31 statements. Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website al". ww.frc.or .uklaudrtorsres onsibilities. This description fomis part of our auditor's report. Extenl to which the audlt was considered Capable of detectlng Irregularitios. Including fraud Irregularities, including fraud, are inslances of non-compliance with laws and regulations. We identified and assessed the risks of material misslatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriats to provide a basis for our opinion. We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011, taxation legislation, together with the Charities SORP (FRS 1021. We assessed the required compliance with these laws and regulations as part of our audrt procedures on the related financial statement items. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial slalemenls but compliance with which mighl be fundamental to the charitable company's ability lo operate or lo avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context for the UK operations were The Education (Independent School Standards} Regulations 2014, Data Protection Regulation (GDPRI, Health and safely legislation and employment legislation. Auditing standards limit the required audit procedures lo idenlrfy non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, rf any. We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the override of controls by managemerll. Our audit procedures to respond to these risks included enquiries of management and the Audit Committee about their own identification and assessment of the risks of irre9ularities, sample testing on the posting of journals, reviewing accounting eslimales for biases, reviewing any regulatory correspondence with the Charity Commission, Independent Schools Inspe¢lorate, Otsled and reading minutes of meetings of those charged with governance. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial slalements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations lirregularitiesl is from the events and transactions reflected in the financial statements, the less likely the inherently limited 13
DULWICH PREP LONDON INDEPENDENT AUDITORS REPORT FOR THE YEAR ENDED 31 AUGUST 2021 procedures required by auditing standards would identify it. In addition. as with any audit. there remained a higher risk of non4eleclion of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresenlalions, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-complian with all laws and regulations. Use of our report This report is made solely to the charitable company's members. as a body, in accordance with Chapter 3 of Part 16 ofthe Companies Act 2006. Our audit worf( has been undertaken so thal we might slate to Ihe charitable company's members those matters we are required to slate to them in an auditor's report and for no other purpose. To the fullest exlenl 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 Allison Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor London Date 26 May 2022 14
DULWICH PREP LONDON STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2021 {Incorporating an income and expenditure account) Total 2021 Totsl 2020 Notes Income from: Charitable actlvltles: School fees receivable Other educational income Ancillary income other trading activlties Non-ancillary trading income Investments Bank and other interest Voluntary sources Donations and legacies Job retention scheme grant 13,601,078 323,597 72,894 13,248,691 304,234 255.832 85,851 106,417 301 5,048 19,582 254.716 18,912 719,769 Total income 14,358,019 14,658.903 Expenditure on: Raising funds Financing costs 91,306 (10,485) Total costs of raising funds 91,306 (10,485) Charitable actlvltles Education 13,772,735 {13,787,239) Total expenditure 13,864,041 13,797,724 Net income 493,978 861,179 Pension scheme actuarial gainl{loss) 15 46,000 15,300 Net movemenl In funds for the year 539,978 845,879 Fund balances brought forward at 1 September 2020 2,754,741 1,908,862 Fund balances carried forward at 31 August 2021 3,294,719 2,754,741 The notes on pages 18 to 30 form part of these flnancial statements 14
DULWICH PREP LONDON BALANCE SHEET AS AT 31 AUGUST 2021 Notes 2021 2020 FIXED ASSETS Tangible assets 976,816 786,376 CURRENT ASSETS Debtors Cash at bank and in hand 10 3,722,674 2,344,870 6,067,544 3,967,663 1,416,420 5,384,083 CREDITORS: Amounts falllng due within one year 11 (3,606,681) {3,260,853) NET CURRENT ASSETS 2,460,863 2,123,230 TOTAL ASSETS LESS CURRENT LIABILITIES CREDITORS.. amounls falling due after more than 1 year 3,437,679 2,909,606 12 {18,6601 {33,765) NET ASSETS EXCLUDING PENSION SCHEME LIABIUTY 3,419,019 2,875,841 Dèfined benefit pension scheme 15 124,300 121,100 NET ASSETS INCLUDING PENSION SCHEME LIABILITY 2,754.741 3,294,719 CHARITY FUNDS Unrestricted funds excluding P8nsion r8seNe Pension reserve 14 3,419,019 124,300 3,294,719 2,875,841 15 121,100 2,754.741 TOTAL FUNDS The financial statements were approved by the Governots on beh , by". Qolzand signed on their rsK elleh Mrlll S Shale nofBoa Vice Chairman of Board The notes on pages 18 to 30 form part of these financial statements Company Number.. 10814894 15
DULWICH PREP LONDON STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31 AUGUST 2021 Note 2021 2020 Net cash inflow from operatlons Net cash provided by operating activities 1,240,730 1,105,206 Cash flows from Investing activitles: Additions to fixed assets Investment income and bank interest received (312,581) 301 1333,855) 5,048 Net cash (used inl investlng activltles 1312,280) 1328,807} Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of period 928,450 776,399 1,416.420 640,021 Cash and Cash equivalents at the end of the reporting period 2,344,870 1.416,420 The notes on pages 18 to 30 form part of these financial statements 16
DULWICH PREP LONDON STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31 AUGUST 2021 2021 2020 11} Reconcillatlon of net Income to net Cash flow from operating activities Net incoming resources Elimination of non-operating cash flows.. 493.978 861,179 Depreciation and amortisation charges Investment income and bank interest received Decrease in debtors (Decrease)Ilncrease in creditors {excluding fees in advance scheme and deposit) Increase in fees in advance Scheme creditors Increase in parents, deposits Differen beeen pension Contributions paid and charges made 122,141 129,667 {301) (5,0481 244.989 143.650 139,646 72,877 1159.9271 71,935 118,21XI 49,200 95,150 31,4001 746,752 244.027 Net cash inflow from operations 1,240,730 1,105,206 2021 2020 lil) Analysis of ¢ash and cash equivalents Cash at bank and in hand 2,344.870 1,416,420 17
DULWICH PREP LONDON NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021 1 ACCOUNTING POLICIES 1.1 Basis of preparation The financial statements 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 charrties preparing their accounts in accordan with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021. The accounts are drawn up on the hislorical cost basis of accounting. The School is a Public Benef1t Enlily registered as a charity in England and Wales (charity number". 1174356 and a company limited by guarantee, {company number.. 10814894}. Its registered office is 42 Alleyn Park. Dulwich, London SE217AA. The charitable company started trading on 1 September 2017. The ultimate parent company and controlling paty of Dulwich Prep London is Dulwich Preparatory Schools Trust ("the Trust"). a charitable company incorporated in the United Kingdom (company number: 005799231. The accounts of the School have been Consolidated into the ultimate parent enlily s financial stalemenls. Copies of these financial slalements can be oblained from the registered office. 42 Alleyn Park, Dulwich, London SE217AA. Control is exercised by the parenl company by virtue of board representation. The principal activity of the Trust is the operation of preparatory schools at Dulwich London and at Cranbrook Kent. The objects of the Trust are the advanment of education primarily by the provision and conduct of schools in Du1Ch 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 Golng 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 that the School has adequate resources to continue rts activities for the foreseeable future and consider that there were no material uncertainties over the Schools's financial viability. Accordingly. they conlinL¢e to adopt the going conrn basis in preparing the financial statements. 1.3 Critlcal accountlng judgements and key sources of estlmatlon uncertalnty 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 Sour$. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual resums may differ from these estimates. 18
DULWICH PREP LONDON NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021 1 ACCOUNTING POLICIES (CONTINUED) The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting eslimales are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affected current and future periods. The School's liability for the Non-Teaching Staff defined benefrt pension scheme involves number of assumptions as disclosed in note 16. The following accounting policies have been applied consistently in dealing with items which a considered material in relation to the School's financial statements. In the view of the Governors, no other assumptions Conrning the future or estimation uncertainty affecting assets or liabilities al the balan sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year. 1.4 Income All income is included in the slalemenl of financial activities when the School has entitlemenl 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 bursarie$ and allowances. Fees reiVed in advance are deferred and released to income in the period to which the fees relate. Grant income is recognised as and when entitlement arises, when it can be reliably quantified and benefit is probable. 1.5 Expenditure Expenditure is accrued as soon as a liability is considered probable, discounted to present value for longer-term liabilities, and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources. Support costs include all costs relating to management. administration and running the functions of the School. Governance costs are those incurred in connection with administration of the charitable company and Complian with constitutional and slalutory requiremenls. 1.6 Tangible fixed assets Fixed assels costing more than £500 are capftalised. Tangible fixed assets are stated at cost less deprecialion. 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. Leasehold improvements Motor vehicles Fixtures and fittings Computer equipment 2Q/D reducing balance 25Vo reducing balance 1 OVO Straight line 25-50'10 Straight line 19
DULWICH PREP LONDON NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021 1 ACCOUNTING POLICIES (continued} 1.7 Fund a¢¢ounting General Funds are the accumulated surplus on the School's income and expenditure account which is available for use al the discretion of the Governors in furtherance of the general objectives of the charily including supporting the Trust. 1.8 Pension costs Retirement benefits to employees of the School were provided in the year through two pension schemes, one defined benefit and one defined contribution and the employer's pension costs are charged in the period in which the salaries they relate to are payable. In addition Ihe School has a legacy defined benefit scheme "the Dulwich Preparatory Schools Pension Scheme" The two schemes are as follows.. lal The Teachers, Pension Scheme- This scheme is a multi-employer pension scheme. It is not possible to 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, the School accounts for the scheme as if it were a defined contribution scheme. The Trust's conlribulions, 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 Ihe School decided to withdraw from this scheme with effect from 1 September 2021. (b) 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 Dulwich Preparatory Schools Pension Scheme- This is an occupational defined benefit scheme for non-teaching staff. The scheme is closed so Ihere are no current service costs. other than administration expenses which are borne directly by the Schools. The expected return on the scheme assets less the scheme interest costs are credited within other interest. 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 at the balance sheet date. Scheme liabilities are measured on an actuarial basis at the balance sheet dale using the projected unit method and discounted at a rate equivalent to the currént 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 fa of the balance sheet. 20
DULWICH PREP LONDON NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021 1 ACCOUNTING POLICIES Icontinuedl 1.9 Operating 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 recognised at Iransaction value and subsequently measured at amortised cost. Financial assets held at 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 Taxatlon The School is a registered charity No. 1174356 and as such is not liable to United Kingdom income lax or corporation tax on charitable activities. 21
DULWICH PREP LONDON NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021 2 FEES RECEIVABLE 2021 2020 Fees receivable conslst of: School fees Less.. total awards and concessions 14,070,524 1469,446) 13,601,078 13,714,413 (465,723 13,248.691 Included within awards and concessions are means-tested bursaries lolalling £286,856 which were paid to 21 pupils {2020'. £275,608 for 23 pupils). During the year, Covid hardship bursaries totalling £65,990 were awarded to 11 pupils {2020. £46,425 for 23 pupils). 3 OTHER EDUCATIONAL INCOME 2021 2020 Entrance and registration fees Extra-curricular activities Courses and sub-lettings AVP sports aelivities income 42.500 124,442 48.045 108,610 323,597 39,950 113,650 85,245 65,389 304,234 4 ANCILLARY AND OTHER INCOME 2021 2020 School trips, School shop. and Other income 72.894 255,832 5 OTHER TRADING ACTIVITIES 2021 2020 Rents receivable 85,851 106.417 22
DULWICH PREP LONDON NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021 6 ANALYSIS OF EXPENDITURE Other Costs Staff costs Depreciation (Note 7> {Note 9) Totsl 2021 Total 2020 Raising funds Financing costs 82.900 8,406 91,306 10,485 Total Costs of ralsSng funds Charitable expenditure Teaching Welfare Premises Support costs Donations to parent entity Total charitable expenditure 91,306 10,485 82,900 8,406 7,358,423 70,862 467,244 1,239,520 614,903 998,564 122,142 2,317.251 583,826 7,973,326 1,069,426 2.906,637 1,823,346 8,240,885 954,626 2,803,047 1.788,682 9,136.049 122,142 4,514.544 13,772,735 13,787.239 Total expenditure 9,218,949 122,142 4,522,950 13,864,041 13,797,724 Financing costs include a past Servi cost of £81.300 in respect of pension equalisation which is not expecled to recur, as detailed in note 15. Governan¢e Included In support costs: 2021 2020 Governor costs Legal & Consultancy fees Remuneralion paid to auditor for audit SeNiS 6,931 4,932 16,000 5,684 3,780 15,120 7 STAFF COSTS 2021 2020 The aggregate payroll costs for the year were as follows.. Wages and salaries Social security costs other pension costs 7,123,632 732,328 1,362,989 9,218.949 7,202,426 748,483 1.300,852 9,251,760 The total employment costs of key management personnel. who are considered to consist of the Headmaster and the Bursar (Director of Finan from December 2019 until December 2020) wa5 £253,587 {2020'. £277,776) including pension contributions of £30.672 (2020.. £27,552). 23
DULWICH PREP LONDON NOTES TO THE FINANCIAL STATEMENTS (CONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2021 7 STAFF COSTS (CONTINUED) 2021 2020 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 11 14 The number with retirement benefits accruing In Defined Contribution schemes was of which the contributions amounted to in Defined Benefit schemes was £18.720 14 £15,844 15 The average number of the School's employees during the year, calculated on headcount, was.. 2021 2020 Teaching Domestic and eslates Administrative 110 16 75 201 118 21 63 202 During the year there were redundancy or termination payments which amounted lo £15.000 (2020 £36.8931 of which £nil was outstanding for payment at the year end. 8 TRUSTEE COSTS AND RELATED PARTY TRANSACTIONS During Ihe year, no Governors received any remuneration. During the year one Governor received reimbursement of expenses for travel and subsistence totalling £7812020.. one Govemor received £36)- In the year there was £0 paid to any governors (£0 in 2020 to any governors}. In 2020121 the School donated £0 (2020.. £0) to the Trust. The School donated staff time lo the Trust totalling £21.14512020.' £48,618) which has been recognised in these accounts as other costs. The School paid rental income of £1,164,733 {2020'. £1,235,600) for the use of its premises. Cash resources for the Group are managed centrally by the Trust and as a consequence at 31st August 2021 £3.345,310 {2020'. £3,587,422) was owed by the Trust. 24
DULWICH PREP LONDON NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021 9 Tangible Fixed Assets Leasehold Furniture Improve Fixtures and ment Equipment Computer Hardware Vehicles Total Cosl At 1 September 2020 Additions Disposal in the year At 31 August 2021 284,180 118,082 1,404,667 64,837 18,7751 1,460,729 731,038 138,437 73,397 2,493,282 321,356 8,775 2,805.863 402,262 869,475 73,397 Depreclation At 1 September 2020 Charged in year Disposal in the year At 31 August 2021 2,564 6,516 1.050,214 44,320 1732 1,093,802 586,946 69,334 67,182 2,703 1.706,906 122.873 1732 1,829.047 9,080 656,280 69,885 Net book values At 31 August 2020 At 31 August 2021 281,616 393,182 354,453 366.927 144,092 213,195 6,215 3,512 786,376 976,816 10 DEBTORS 2021 2020 Fee debtors Sundry debtors Prepayments and accrued income Amounts due from parent undertaking 47,511 171,195 158,658 3,345,310 3,722,674 31,062 205,281 144.393 3,586,927 3,967,663 11 CREDITORS.. amounts falllng due wlthln one year 2021 2020 Trade creditors Social security and other taxation Fees in advan Other creditors Fee deposits Accruals and deferred income 414.996 188,265 1.334,133 93,831 1,404,415 171,041 3.606,681 230.796 187.170 1,246,151 232,508 1,286,215 78,013 3,260,853 25
DULWICH PREP LONDON NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021 12 FEES IN ADVANCE 2021 2020 Within one to two years 18,660 33,765 Movements in fees in advance Opening fees in advance Amounl released to income during Ihe year Amount deferred during the year 33,765 133.765) 18,660 18,660 78,204 144.439) 33,765 13 OPERATING LEASE COMMITMENTS Al 31 August 2021 Ihe Company had future minimum lease payments under non- cancellable operating leases as follows.. Land and Buildings 2021 Other Land and Buildings 2020 Other 2021 2020 Within 1 year Belween 2 and 5 years After more than S years 1,122.850 4,451.400 31,644,350 132,114 145.819 1,250.225 4,939.400 33,599,200 164,455 258,1 The charge in the year was £1,318,06712020'. £1.395,4341. 14 SUMMARY OF MOVEMENTS ON MAJOR FUNDS A11 September 2020 A131 August 2021 Incoming resources Resources expended Gains Unrestricted Funds 2.754,741 14,358,019 (13,864,041 46,000 3,294,719 15 PENSION SCHEMES Teachers, Pension Scheme DuSwich Prep London participated in the Teachers. Pension Scheme {"Ihe TPS,) for their teaching staff. The pension charge for Ihe year includes contributions payable to the TPS of £1,084,953 (2020.. £1,201,184) and at the year-end £0 {2020.' £132,709) was accrued in respect of contributions to this scheme. The school left the TPS with effeot from 1 September 2021. 26
DULWICH PREP LONDON NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021 15 PENSION SCHEMES (Continued) Defined benefit scheme The TPS is an unfunded mulli-employer defined benefits pension scheme governed by The Teachers, Pensions Regulations 2010 (as amended) and The Teachers, Pension Scheme Regulations 2014 las amended). Members contribute on a °pay as you go" basis with contributions from members and the employer being Credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament. The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary's Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2016 and the Valuation Report, which was published in March 2019, confi'mied that the employer contribution rate for the TPS would increase from 16.4.10 to 23.6 /0 from 1 September 2019. Employers are also required lo pay a scheme administration levy of 0.080/0 giving a total employer contribution rate 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 'McCloudlSargeanl case,. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teachers, Pensions. On 27 June 2019 the Supreme Court denied the government permission to appeal the Court of Appeal's judgment Ihal transitional provisions introduced to the reformed pension schemes in 2015 gave rise lo 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 rernedied. The govemmenl announced on 4 February 2021 that it intends to proceed with a deferred choice underpin under which members will be able to choose either legacy or reformed scheme benefits in respect of Iheir Servi 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 to protect laxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, In January 2019 announced a pause to the cost cap mechanism following the Court of Appeal's ruling in the Mccloudlsargeant case 2nd until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020, and a consultation was launched on 24 June on proposed changes to the cost control mechanism followng a review by the Government Actuary. Following a public consultation, the Government have accepted three key proposals recommended by the Government A¢tuary. and are aiming lo implement these changes in time for the 2020 valuations. 27
DULWICH PREP LONDON NOTES TO THE FINANCIAL STATEMENTS (CONTINUED} FOR THE PERIOD ENDED 31 AUGUST 2021 15 PENSION SCHEMES {CONTINUED> In view of the above wlings and decisions the assumptions used in Ihe 31 March 2016 Actuarial Valuation may become inappropriate. In this scenario, a valualion prepared in accordance with revised benefits and suitably revised assumptions would yield different results to 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. Deflned contr5butlon scheme The pension cost charge in the year in respecl of the non-teaching staff defined contribution scheme was £167.42412020'. £156.1291. Non-teaching defined benefit scheme The parent Trust operated this Scheme (the Dulwich Preparatory Schools Pension Scheme), which was closed to new entrants from 1 January 2005, both in respecl of new members and accrual for existing members. On 1st September 2017 the Trust transferred the obligations to contribute lo the Schème to each of the Schools in proportions determined by the actuary based on the staff who participated in the scheme. The valualion in these accounts uses that proportion and has been derived by projecting the results of the lasl comprehensive actuarial valuation of the Scheme as at 1 January 2018 and has been prepared by an independent qualified actuary. Following the latest actuarial valuation a revised Schedule of Contributions was agreed between the Trust, the Schools and the Scheme Trustees with the aim of eliminating the deficit over a period of 5 years from 1 January 2021. Under this Schedule of Contributions the School expects to conlribule £36,810 to the Scheme in 2021122 {£33,663 2020121) The school has recognised a past service cost in respect of equalisation estimated at £81,300. The amounts recognised In the balance sheet are as follows 2021 2020 Present value of funded obligation$ Fair value of scheme assets Net (Liability) 1725,3001 (670,600) 601000 549,500 (124,3001 (121,100) 28
DULWSCH PREP LONDON NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 AUGUST 2021 15 PENSION SCHEMES (CONTINUED) b) Changes In the present value of the deflned benef it obllgation Opening defined benefit obligation Interest cost Psst service cost Actuarial Igains}Ilosses Benefits paid Closing defined benefit obligalion 2021 2020 670,600 10,500 81,300 131,100> 6.000 725,300 663.500 11.700 8,900 {13,5001 670,600 ¢) Changes In the fair value of the scheme assets 2021 2020 Opening fair value of scheme assets Interest income Return 9ater[(lOWer) than the discount rate Contributions by employer Benelils paid Closing fair value of scheme assets d) The amounts included within the Statement of Flnancial Actlvities Interest on obligation Interest income Past service cost Total amount Charged to the Statement of Financial Activities 549,500 8,900 14,900 33,700 6.000) 601.000 526,300 9,400 16.400) 33,700 {13,500 549,500 2021 2020 10.500 {8.9001 81,300 82,900 11,700 {9,400} 2,300 Net actuarial gainsl(lossesl recognised in the year e) PrincSpal actuarial assumptions at the balance sheet date 46.000 (15,300 2021 2020 Financial Assumptions Di$eounl rate RPI inflation assumption Rate of increase of pensions in payment Rate of increase of pensions in defemient 1.70 3.4. 3.70/. 3.0% Assumed life expectancy in years at age 65.. Non pensnerS Females Males Pensioners Females Males 26.2 23.7 25.4 23.4 24.4 22.0 23.9 21.9 29
DULWICH PREP LONDON NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 AUGUST 2021 16 POST BALANCE SHEET EVENT In November 2021 Dulwich Prep London signed new leases, effective from 1 September 2021, with the Dulwich Preparatory Schools Trust. The rent will increase over the next 5 years. In 2021-22 the rent will be £1.715,988 and this will increase lo £2.018,810 in 2025-26. 30