2021-08-31-accounts - Dulwich Preparatory Schools Trust

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Company No. 579923 Registered in England Charity No. 312715

DULWICH PREPARATORY SCHOOLS TRUST

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

DULWICH PREPARATORY SCHOOLS TRUST ANNUAL REPORT OF THE TRUSTEES YEAR ENDED 31 AUGUST 2021

The Trustees present their annual report together with the audited financial statements of the Dulwich Preparatory Schools Trust (the Trust) for the year ended 31 August 2021.

The Trustees confirm that the annual report and financial statements of the Trust comply with the current statutory requirements, the requirements of the Trust's governing document and the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" (Charities SORP FRS102).

Status and administration

The Trust is a company limited by guarantee (Company Number 579923) and is registered with the Charity Commission under Charity Number 312715.

Trustees' responsibilities

The Trustees (who are also directors of Dulwich Preparatory Schools Trust for the purposes of company law) are responsible for preparing the Trustees' 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 Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Trust and of the incoming resources and application of resources, including the income and expenditure, of the Trust for that period. In preparing these financial statements, the Trustees 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 statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Trust will continue in operation.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Trust's transactions and disclose with reasonable accuracy at any time the financial position of the Trust 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 Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

so far as each Trustee is aware, there is no relevant audit information of which the Trust's auditor is unaware, and
each Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the Trust's auditor is aware of that information.

DULWICH PREPARATORY SCHOOLS TRUST S REPORT FOR THE YEAR ENDED 31 AUGUST 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Trust is the parent charity of two independent school charities, Dulwich Prep Cranbrook and Dulwich Prep London . The Trust supports the provision of education by the two Schools and the two Schools lease their facilities from the Trust. Members of the Trust comprise the Trustees of the Dulwich Preparatory Schools Trust, together with all the Governors of the Schools.

The Articles reflect the Companies Act 2006 and the Charities Act 2011.

Trust Board

The Trustees of the Trust are charity Trustees under charity law and Directors of the Trust for the purposes of company law.

The members of the Trust Board who served in office as Trustees during the year and subsequently are detailed below:

Mr D H Nelson Independent Chairman Mr A P Anderson II Nominated by the Governing Body of Dulwich Prep Cranbrook: appointed from 27[th] September 2021 Mr M StJ Ashley Nominated by the Governing Body of Dulwich Prep Cranbrook Dr S J Bailey Independent Trustee Mrs E K Kelleher Nominated by the Governing Body of Dulwich Prep London Mrs S L Rynehart Nominated by the Governing Body of Dulwich Prep Cranbrook: retired from 27[th] September 2021 Mr J D H Steel Nominated by the Governing Body of Dulwich Prep London Mr M J Tiplady Independent Trustee

Officers

Secretary to the Trustees: N B Holliday

Professional Advisers

Bankers: NatWest Bank plc, 120-122 Fenchurch Street, London EC3M 5BA

Auditor: Crowe U.K. LLP, 55 Ludgate Hill, London EC4M 7JW

Management Structure

The Board meets a minimum of three times per year, normally once per academic term. There are three Independent Trustees, including the Chairman, and each of the Schools nominates as Trustees. The Board has a

DULWICH PREPARATORY SCHOOLS TRUST ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

Finance Committee which meets a week or two prior to Trust Board meetings, and at other times when necessary, to discuss financial matters on which it advises the Board. The Trust considers the performance of each School, their future plans, budgets and operation, together with applications for capital investment.

Trustee Recruitment & Training

The Board is self-appointing, with new Trustees identified and appointed following agreement from all current Trustees. Trustees 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 years, making ten years in total, except in exceptional circumstances.

New members of the Board are elected on experience, personal competence and the specific needs of the Trust. New Trustees are inducted into the workings of the charitable company via a programme organised by the Secretary. The Secretary will also notify members of the Board of relevant external Trustee training and information courses and seminars designed to keep them informed and updated on current issues in the sector and regulatory requirements.

Charity Code of Governance

The Board takes its governance responsibilities seriously and the Group aims to have a governance framework that is fit for purpose, compliant and efficient. The Group has established a solid foundation in governance in which all of its Trustees are clear about their roles and legal responsibilities, are committed to supporting the Trust in delivering its objects most effectively for the benefit of its beneficiaries and contributing to the continued improvement of the Schools.

The Group meets the key outcomes set out in the seven areas of the Charity Governance Code. The structure of the Group and the relationship between the Trust and the two Schools are designed in such a way as to ensure that recommended practice is observed and, where specific aspects are delegated to the Schools, these aspects are regularly monitored.

Employment policy

The Trust and each of the Schools is an equal opportunities employer. Full and fair consideration is given to job applications from disabled persons and due consideration is given to their training and employment needs. Consultation with employees, or their representatives, has continued at 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 relevant School.

Communication with employees continues through normal management channels in a variety of forms and also through exceptional channels to make staff aware of current issues.

The work which he undertakes on behalf of the Trust and is calculated as a percentage of his previous salary when he was employed by Dulwich Prep London on a full time basis.

DULWICH PREPARATORY SCHOOLS TRUST ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

STRATEGIC REPORT

The remainder of the report of the Trustees also constitutes the strategic report for the purposes of the Companies Act 2006.

Principal activity and objects of the charitable company

The principal activity of the Trust is the advancement of education in the United Kingdom and elsewhere, currently through the support provided to the two Schools.

The Board is mindful of the long-standing need to provide public benefit and strives to do so through the support of development in education generally, through bursaries (mainly provided by the two Schools), through working with other educational bodies and the promotion of best practice.

Aim

The Trustees' aim is that pupils at the Schools should benefit from the provision of first class facilities to enable them to fulfil their potential on all fronts - academic, artistic, dramatic, musical, sporting, social and moral.

Primary objective

The Trust is a charitable trust which promotes the advancement of education in a broad context and in particular at its two Schools in London and Kent.

Strategies to achieve the primary objective

The Trust seeks to achieve its primary objective through the implementation of the following strategies:

By providing an excellent education at Dulwich Prep Cranbrook and Dulwich Prep London;
Through the provision of bursaries and other financial support to enable children whose parents would not otherwise be able to afford the fees to benefit from an education at the Schools;
By raising funds in support of education and organising, or making grants towards, lectures, seminars, broadcasts or courses of instruction;
By considering ways in which technology can be can be used to enhance teaching and learning;
Through the provision of classrooms and buildings generally in connection with education at Dulwich Prep London and Dulwich Prep Cranbrook and elsewhere;
Through the provision of playing fields, games courts, recreational grounds and pavilions, swimming pools and other facilities in connection with sports, games and recreational activities of all kinds at Dulwich Prep London and Dulwich Prep Cranbrook and elsewhere;

DULWICH PREPARATORY SCHOOLS TRUST ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

By setting rents at a level to ensure the financial viability of the Schools and at a level that is consistent with future capital investment to provide a first class education to boys and girls at the Schools;
Through the maintenance of a clear and effective management structure and the necessary support framework to meet the needs of the Schools;
By acting as banker to the Schools and by lending money to facilitate the cash flow of each School.

The facilities. In September 2020 the Trust completed the sale of land at Cranbrook as a residential development site raising £1.425 million gross.

Dulwich Estate. In February 2021 a 50 year lease extension to 2081 was signed on the main lities for the benefit of Dulwich Prep London. As part of this deal the Trust surrendered back to the Dulwich Estate Brightlands, premium of £1.1 million to the Dulwich Estate. A further condition of this deal was the creation of a new entrance to the Early Years car park which was funded by the Trust and completed in January 2021.

The Trust also provided £500k to fund an enhancement of the Pre-Prep facility at Dulwich Prep London which was completed in August 2021. This included the creation of two new classrooms.

Strategic reviews are currently underway at both Schools which may lead to the need for further capital investment in due course.

Public benefit

The Trust remains committed to the aim of providing public benefit in accordance with its founding principles. Charity legislation includes a requirement to demonstrate public benefit for any charitable purpose where it had hitherto been presumed in the absence of evidence to the contrary. This calls in turn for commensurate disclosure of our public benefit aims.

The awarding of bursaries for the needy is a measurable means of providing public benefit. The Board takes the view that bursaries awarded to those who would not otherwise be able to afford the fees are important, but not to the exclusion of the much wider benefit that the Trust provides currently delivered primarily through the two Schools, each of which has a bursary programme Schools provided means-tested bursary support totalling £445k to 38 pupils (2020: £417k to 38 pupils) of which 19 were for 70% or more of full fees. In addition, there was support for local charities and educational bodies through fund-raising activities, outreach programmes and the loan of facilities. actively promote child mental health awareness with Dulwich Prep London employing a dedicated counsellor while Dulwich Prep Cranbrook retains Place2Be. Although more limited than in previous years due to COVID-19, a number of state schools benefit he use of facilities to support from staff and the provision of lunches to vulnerable children in partnership with Dulwich

DULWICH PREPARATORY SCHOOLS TRUST ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

The Trust 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.

Streamlined Energy and Carbon Reporting (SECR)

Limited Liabilities Partnerships (Energy and Carbon Report) Regulations 2018. The two Schools each meet two of the criteria for non-disclosure and therefore are not required to produce a report. As a result, since the Trust, as the parent entity, does not produce any emissions, the Trustees have concluded that the Group does not need to submit a return.

Section 172(1) Report incorporating Statements of Employee and Stakeholder engagement

The Trustees of the Trust, as Directors of the Company, act in the way they consider, in good faith, would be most likely to promote the success of the Group for the benefit of its members as a whole and in doing so have regard to:

a) The likely consequences of any decision in the long run;
c) T
e) The desirability of the Group maintaining a reputation for high standards of business conduct;
f) The need to act fairly.

The Trust achieves the success of its wider charitable purposes through the activities undertaken by its Schools, which are regularly monitored and assessed. This incorporates the desire to meet the requirements of all stakeholders, whether pupils and the wider community, staff, donors, fee payers and suppliers.

aims and objectives on page 4, in the following ways:

a) The likely consequences of any decision in the long run:
The Trustees have considered the longout in the Going Concern section of the Financial Review on page 9.
The Board sets and approves strategic direction and policy, meets three times each year and additionally as required. The Board monitors the work of the Schools through its Finance Finance Committee reviews the Schoo income and expenditure against forecasts within the context of the annual budgets and the rolling 5 year financial plans. Capital expenditure plans and cash flow requirements are also closely reviewed, pa requirements.
management procedures are well established. The most significant risks are discussed at each relevant Trust Board meeting. Further details are contained on pages 9 & 10.
The Trustees review and endorse all policies to ensure consistent long term regulatory compliance.

DULWICH PREPARATORY SCHOOLS TRUST ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

Authoritative and frequent communication with staff at the two Schools has been essential, especially during the lockdown when many staff were working remotely. This has been conducted by regular staff team meetings and routine weekly written communications to staff and parents. Staff who have been furloughed have been contacted by their own line management and through a series of newsletters and other communications to maintain their awareness. Staff have been kept informed about staffing, financial and strategic issues affecting them and the Schools.
Full details of the employment policy are contained on page 3.
- All senior management are involved in the early stages of the strategic plan development, and staff are updated on the plan and priorities at the start of each academic year. - Meaningful engagement is encouraged through the staff forum at each School where employees across all departments discuss and make recommendations direct to senior management. A diverse programme of well-being activities is available to all staff.

c) The ne

A fair and consistent selection policy ensures a diverse and thriving pupil body who are fully supported throughout their education from nursery to external examinations for the senior schools of their choice, enabling and preparing pupils for later life.
Robust recruitment of the best teachers and valuing staff supports stability and a high standard of education.
A fair policy of bursary awards, consistently applied, supports families who may not otherwise be able to access education at the Schools.
The parent contract forms the basis of the relationship with fee payers. This is reviewed regularly to ensure best practice and then applied fairly and consistently. Parental engagement is maintained through regular correspondence and termly publications.
All suppliers are treated fairly and promptly with adherence to business terms. - The Group receives regular reports and updates in fundraising regulations through the Schools; the Schools do not engage with any external third party fundraisers.
The Group supports the Schools in undertaking a full provision of community and partnership activity.
Full details are contained on page 5.

e) The desirability of the Group maintaining a reputation for high standards of business conduct:

suspicion of fraud, bribery or corruption arising in the course of their work and to cooperate fully with related investigations. The Schools take a zero tolerance approach towards fraud, bribery and corruption. The Whistleblowing Policies support staff in this approach.

f) The need to act fairly:

DULWICH PREPARATORY SCHOOLS TRUST ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

All Trustees and senior staff complete an annual Conflict of Interest Declaration. There have been no reported incidents of unacceptable relationships.

ACHIEVEMENTS AND PERFORMANCE

Review of achievements and performance for the year

The Schools were significantly affected by COVID-19 during the year. Depending on the prevailing Government guidance, education at the Schools continued through different formats including live lessons, pre-recorded messages, pre-set work and online learning. During the lockdowns both Schools remained open, but only for the children of key workers. During periods when the Schools were closed innovative communication meant that some art, music, drama and physical education were also delivered. Despite these restrictions t 146 pupils to over 45 different senior schools, including many of the top schools in the UK. Between them these pupils gained the offer of 100 scholarships and education was demonstrated by the variety of these awards which were achieved not only for academic success, but also for art, DT, music and sport.

The £4.3 million bank loan taken out by the Trust to fund the Lower School project in London project is being repaid with the Trust agreeing a repayment holiday on its existing loan for 12 months from June 2020. The construction of a new entrance for the Early Years car park, which was a condition of the surrender of Brightlands, was completed in January 2021. The development of the Pre-Prep facility to create two new classrooms was completed in August 2021. Both these projects were funded by the Trust in support of Dulwich Prep London.

Following the withdrawal of Dulwich Prep Cranbrook from Scheme in November 2019, the Governors of Dulwich Prep London entered into consultation with teaching staff

Scheme. After a full consultation process an alternative defined contribution pension arrangement was offered which was accepted by all the staff involved and Dulwich Prep London withdrew from the at the end of August 2021.

FINANCIAL REVIEW

The net income for the year ended 31 August 2021 amounted to £786,218 (2020: £1,087,818). The net cash generated from operations was partially used to pay for capital expenditure in support of Dulwich Prep London. The net book value of fixed assets amounted to £43,635,391 (2020: £42,625,053).

The Trust receives income through the rents received from the Schools for their use of educational and residential property. It also benefits from donations of surplus funds from the Schools when the Although both Schools received financial support through the Government Coronavirus Job Support Scheme they also reduced fees to reflect, for example, the lack of catering and the changes to residential trips. In addition, the Schools seek to enhance their income through letting their facilities both to regular and casual

DULWICH PREPARATORY SCHOOLS TRUST ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

hirers. During the year there were significant restrictions on these lettings as well as the holiday activity programme run by Dulwich Prep London with a consequential reduction in income.

Reserves

The Trust cy is to maintain its free unrestricted reserves at a minimal level given the confidence it has in its continuing income stream from the Schools, both from rents and from any surpluses. At any time, however, it may build up reserves in anticipation of a future capital project to support the Schools or to support its other charitable objectives. Alternatively, as at present, it may be prepared to borrow funds for the short to medium term to invest in capital projects to support the Schools. At the year end, therefore, the Trust had negative free unrestricted reserves of £7,255,370 (2020: £7,304,575). Funds held by the Group at the year end totalled £38,727,884 (2020: £37,740,666) with negative free unrestricted reserves of £4,378,202 (2020: £4,898,227).

The Trustees have considered the reserves policy in light of the Covid-19 pandemic and have concluded that no adjustments to the policy need to be made.

Going concern

All the pupils returned to the Schools for the start of the Autumn Term 2021. However, the continued risks associated with Covid and the possibility of further lockdowns are encouraging a cautious approach. The future strategy at both Schools is currently under consideration. It has been announced that Dulwich Prep Cranbrook will extend to Year 11 from Autumn 2023. This will support the school and its cost base. The Trust has agreed to support Dulwich Prep Cranbrook if the requirement arises whilst it extends to Year 11. Further to this negotiation has been opened with Southwark Council over the assignment of the unexpired term of their lease of the Mary Datchelor playing fields from the Dulwich Estate.

the position of the two schools and its

available facilities, the risks to which it is exposed and the detailed cash projections noted above the Trustees are satisfied that it remains appropriate to prepare the statements on a going concern basis.

Future plans

ability and to offer them a broad range of artistic, musical and sporting options.

ange of senior schools.

the wider community and through this to ensure staff, parents and pupils have an appreciation of the world around them and the difference they can make.

to afford the fees.

rovide them with developmental training.

strategies.

DULWICH PREPARATORY SCHOOLS TRUST ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

PRINCIPAL RISKS AND UNCERTAINTIES

The Trustees consider the affordability of fees by parents across the independent sector to be the principal risk faced by the Trust. This risk is likely to increase as the future financial impact of Covid-19 emerges in the coming months and years. Enrolment is a critical issue at both Schools and this is closely monitored by the Trust.

Health and Safety is always a significant area for risk management. The risks range from fire and infrastructure to personal risks (most notably when away from the campus on trips and expeditions). The level and breadth of activity at the Schools is impressive and the risks associated with all activities are minimised by thorough planning and risk assessment.

Detailed consideration of risk is undertaken for each School by its Board, with input from the Senior Leadership Teams. The Trust also considers risk at Group level and the Risk Register is a standing item at each Board meeting. The risk management process and the resulting register identify risks, assess their impact and likelihood and, where necessary, recommend controls to mitigate and monitor those risks which are assessed as high. In particular, the threat arising from any terrorist activity in London is kept under close review.

The generic controls used by the Trust 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 accounting; 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 Trustees regularly review the effectiveness of current plans and strategies for managing all identified major risks for the Group.

Approved by the Board of Dulwich Preparatory Schools Trust, including, in their capacity as company directors, approving the contained therein, and signed on its behalf by:

D H Nelson Chairman

Date: 27 April 2022

DULWICH PREPARATORY SCHOOLS TRUST S REPORT FOR THE YEAR ENDED 31 AUGUST 2021

Opinion

We have audited the financial statements the Consolidated Statement of Financial Activities, Consolidated and Company Balance Sheets, Consolidated Statement 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 Accepted Accounting Practice).

In our opinion the financial statements:

ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on 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 responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial

DULWICH PREPARATORY SCHOOLS TRUST S REPORT FOR THE YEAR ENDED 31 AUGUST 2021

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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion based on the work undertaken in the course of our audit

eport and
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 statements; and
been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In light of the knowledge and understanding of the group and charitable company and their environment obtained in the course of the audit, we have not identified material misstatements

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
on specified by law are not made; or
we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

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 a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

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 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.

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.

DULWICH PREPARATORY SCHOOLS TRUST S REPORT FOR THE YEAR ENDED 31 AUGUST 2021

A further description of our responsibilities for the audit of the financial statements is located

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement 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 appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group 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 102). We assessed the required compliance with these laws and regulations as part of our audit 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 statements but compliance with which might be fundamental to the id a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group 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 (GDPR), Health and safety legislation and employment legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of rental income, and the override of controls by management. 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 irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing any regulatory correspondence with the Charity Commission, Independent Schools Inspectorate, Ofsted 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 statements, 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 (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for

preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

Use of our report

DULWICH PREPARATORY SCHOOLS TRUST S REPORT FOR THE YEAR ENDED 31 AUGUST 2021

with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so law, we do not accept or assume responsibility to anyone other than the charitable company opinions we have formed.

[This report has not yet been signed]

Tina Allison

Senior Statutory Auditor

For and on behalf of

Crowe U.K. LLP

Statutory Auditor

London

[Date] 26 May 2022

DULWICH PREPARATORY SCHOOLS TRUST CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2021

(Incorporating an income and expenditure account)

Notes Unrestricted Funds 2021 Income from: £ Charitable activities: School fees receivable 2 18,973,351 Other educational income 3 364,525 Ancillary income 4 1,407,220 Other trading activities Non-ancillary trading income 5 113,290 Investments Bank and other interest 304 Voluntary sources Donations and legacies 40,727 Job retention scheme grant 338,449 Total income 21,237,866 Expenditure on: Raising funds Financing costs 6 (472,556) Total costs of raising funds (472,556) Charitable activities Education and grant making 6 (19,981,676) Total expenditure (20,454,232) Net income 783,634 Transfer between funds 15 140 Pension scheme actuarial gain/(losses) 17 201,000 984,774 37,726,826 Fund balances carried forward at 31 August 2021 38,711,600 Fund balances brought forward at 1 September 2020 Net movement in funds for the year	Restricted Funds 2021 £ - - - - - 2,584 -	Total Total 2021 2020 £ £ 18,973,351 18,810,170 364,525 352,893 1,407,220 746,289 113,290 130,351 304 5,118 43,311 24,066 338,449 953,702
21,237,866	2,584	21,240,450 21,022,590
(472,556)	-	(472,556) (141,291)
(472,556) (19,981,676)	- -	(472,556) (141,291) (19,981,676) (19,793,480)
(20,454,232)	-	(20,454,232) (19,934,771)
783,634 140 201,000	2,584 (140) -	786,218 1,087,818 - - 201,000 (67,000)
984,774 37,726,826	2,444 13,840	987,218 1,020,818 37,740,666 36,719,848
38,711,600	16,284	38,727,884 37,740,666

The notes on pages 19 to 38 form part of these financial statements.

DULWICH PREPARATORY SCHOOLS TRUST CONSOLIDATED AND CHARITY BALANCE SHEET AS AT 31 AUGUST 2021

Group Notes 2021 FIXED ASSETS £	Group Notes 2021 FIXED ASSETS £	Group Notes 2021 FIXED ASSETS £	Group 2020 £	Trust 2021 £	2020 £ Trust
Tangible assets	9	43,635,391	42,625,053	42,498,118	41,671,758
CURRENT ASSETS Debtors Cash at bank and in hand	10	600,712 3,570,351	1,198,358 2,878,919	68,728 382,776	482,954 606,655
		4,171,063	4,077,277	451,504	1,089,609
CREDITORS: Amounts falling due within one year	11	(5,557,006)	(4,816,544)	(4,733,613)	(4,798,467)
NET CURRENT LIABILITIES CREDITORS: amounts falling due after more than one year NET ASSETS EXCLUDING PENSION SCHEME LIABILITY NET ASSETS INCLUDING PENSION SCHEME LIABILITY CHARITY FUNDS Pension reserve Restricted funds TOTAL FUNDS TOTAL ASSETS LESS CURRENT LIABILITIES Unrestricted funds excluding pension reserve Defined benefit pension scheme liability	12 17 15 17 15	(1,385,943)	(739,267)	(4,282,109)	(3,708,858)
		42,249,448 (2,978,559)	41,885,786 (3,616,120)	38,216,009 (2,959,899)	37,962,900 (3,582,354)
		39,270,889 (543,005)	38,269,666 (529,000)	35,256,110 -	34,380,546 -
		38,727,884	37,740,666	35,256,110	34,380,546
		39,254,605 (543,005) 16,284	38,255,826 (529,000) 13,840	35,242,748 - 13,362	34,367,184 - 13,362
		38,727,884	37,740,666	35,256,110	34,380,546
		- 0		-

The notes on pages 19 to 37 form part of these financial statements. The parent charity result for the year ended 31 August 2021 was a surplus of £875,564 (2020: £198,075).

The financial statements were approved by the Trustees on and signed on their 27 April 2022 behalf, by:

Company Number: 579923

D H NELSON Chair of Board

DULWICH PREPARATORY SCHOOLS TRUST CONSOLIDATED STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31 AUGUST 2021

Note Net cash inflow from operations Net cash provided by operating activities (i) Cash flows from investing activities:	2021 2020 £ £ £ £ 1,977,466 1,134,661	2021 2020 £ £ £ £ 1,977,466 1,134,661	2021 2020 £ £ £ £ 1,977,466 1,134,661
Additions to fixed assets (excluding capitalised borrowing costs)	(2,263,701) (584,750)
Net proceeds from sale of tangible fixed assets 1,379,348 598,828 Investment income and bank interest received 304 5,118 Net cash (used in)/provided investing activities (884,049) 19,196 Cash flows from financing activities: Cash inflows from borrowing - 300,000 Repayment of loan (323,554) (396,978) Interest expense (78,431) - Borrowing costs - 15,578

Net cash (used in) from financing activities		(401,985)	(81,400)

Change in cash and cash equivalents in the reporting period		691,432	1,072,457
Cash and cash equivalents at the beginning of period		2,878,919	1,806,462

Cash and cash equivalents at the end of the reporting period (ii)		3,570,351	2,878,919

The notes on pages 19 to 37 form part of these financial statements.

DULWICH PREPARATORY SCHOOLS TRUST CONSOLIDATED STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31 AUGUST 2021

	2021 2020 £ £ £ £	2021 2020 £ £ £ £	2021 2020 £ £ £ £
(i) Reconciliation of net movement in funds to net cash flow from operating activities

Net incoming resources	786,218 1,087,818
Elimination of non-operating cash flows: Investment income	(304) (5,118)
Difference between pension contributions paid and charges made	215,005 (137,000)
Depreciation and amortisation charges Interest and other charges (Profit) on disposal of fixed assets Decrease/(Increase) in debtors Increase/(Decrease) in creditors (excluding bank loans, fees in advance scheme and deposits) Increase in provisions Increase/(Decrease) in fees in advance scheme creditors	1,241,516 1,242,743 105,536 83,287 (1,369,450) (472,161) 597,645 (336,691) 117,587 (338,826) 85,266 - 78,247 (70,779) 120,200 81,388 1,191,248 46,843


Net cash inflow from operations		1,977,466	1,134,661
(ii) Analysis of cash and cash equivalents Cash at bank and in hand		2021 £ 3,570,351	2020 £ 2,878,919

DULWICH PREPARATORY SCHOOLS TRUST 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 (FRS102), the Companies Act 2006 and the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The accounts are drawn up on the historical cost basis of accounting.

The Trust is a Public Benefit Entity registered as a charity in England and Wales (charity number: 312715) and a company limited by guarantee, (company number: 00579923). Its registered office is 42 Alleyn Park, Dulwich, London SE21 7AA.

The consolidated financial statements include the results of the Trust and its two subsidiaries, Dulwich Prep London and Dulwich Prep Cranbrook (together 'the Group'). Accordingly, the Consolidated Statement of Financial Activities reflects the incoming resources and resources expended of the Group and not the Trust as an individual entity.

1.2 Going Concern

Having reviewed the cash position of the Trust together with the expected ongoing demand for places at the Schools and future projected cash flows, including the ongoing effects of Covid19 and potential lockdowns, the Trustees have a reasonable expectation that the Group has adequate resources to continue its activities for the foreseeable future and consider that there were no material uncertainties over the Group's financial viability. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

1.3 Critical accounting judgements and key sources of estimation uncertainty

In the application of the accounting policies, Trustees are required to make judgements, 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 to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affected current and future periods.

The Group's liability for the Non-Teaching Staff defined benefit pension scheme involves a number of assumptions as disclosed in note 17. In the view of the Trustees, no other assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

DULWICH PREPARATORY SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

1 ACCOUNTING POLICIES (continued)

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the financial statements.

1.4 Income

All income is included in the consolidated statement of financial activities when the Group has entitlement 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 to income in the period to which the fees relate. Grant income is recognised as and when entitlement arises, can be reliably quantified and the 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.

1.6 Tangible fixed assets

Tangible fixed assets are stated at 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 are capitalised if they exceed a noncase of the Trust and Dulwich Prep London and £200 in the case of Dulwich Prep Cranbrook.

Freehold land	-	Not depreciated
Freehold property	-	Over 5 to 50 years
Long term leasehold property	-	Reducing balance over 50 years
Motor vehicles	-	25% reducing balance
Fixtures and fittings	-	10% straight line
Computer equipment	-	25-50% straight line

Borrowing costs directly attributable to capital development projects have been capitalised.

DULWICH PREPARATORY SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

1 ACCOUNTING POLICIES (continued)

1.7 Fund accounting

similarly belongs to the corporate reserves of the relevant school and is spendable at the

Schools contain provisions to provide support to each other. Where the Trustees or Governors (as relevant) decide to set aside any part of these funds to be used in future for some specific purpose, this is accounted for by transfer to the appropriate designated fund.

Restricted funds may only be spent on the charitable purpose specified by the donor.

1.8 Pension costs

Retirement benefits to employees of the Group are now provided through one defined benefit and two defined contribution schemes. The pension costs charged in the Statement of Financial Activities are determined as follows:

by FRS102, the Group accounts for the scheme as if it were a defined contribution scheme. Government Actuary, are charged in the period in which the salaries to which they relate are payable. Dulwich Prep Cranbrook left this scheme on 31 October 2019.

(b) From 1 November 2019, Dulwich Prep Cranbrook teaching staff have become members of the Aviva Pension Trust for Independent Schools which as its name implies is operated by in which the salaries to which they relate are payable.

(c) The Dulwich Preparatory Schools Trust Non Teaching Staff Group Personal Pension Plan - costs are charged in the period in which the salaries to which they relate are payable.

DULWICH PREPARATORY SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

1 ACCOUNTING POLICIES (continued)

In addition the Trust has historically provided retirement benefits to non-teaching staff through a defined benefit scheme, The Dulwich Preparatory Schools Pension Scheme. The scheme is now closed so there 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 at fair value at the balance sheet date. Scheme liabilities are measured on an actuarial basis at the balance sheet date using the projected unit method and discounted at a rate 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.

1.9 Operating leases

Rental income and expenditure under operating leases are accounted for on a straight-line basis over the lease term, even if the payments are not made on such a basis.

1.10 Financial instruments

Basic financial instruments are initially recognised at transaction 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 at amortised cost comprise all creditors except for fees received in advance, social security and other taxes and provisions.

Administration and similar fees paid for borrowings are treated as interest and amortised over the life of the loans

1.11 Taxation

The Trust is a registered charity No.312715 and as such is not liable to United Kingdom income tax or corporation tax on charitable activities.

DULWICH PREPARATORY SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

2 FEES RECEIVABLE Fees receivable consist of: School fees Less: total awards and concessions	2021 2020 £ £ 20,018,289 19,890,600 (1,044,938) (1,080,430) 18,973,351 18,810,170
Included within awards and concessions are means-tested bursaries totalling £443,214 which were paid to 38 pupils (2020: £417,718 to 38 pupils).
3 OTHER EDUCATIONAL INCOME Entrance and registration fees Courses and sub-lettings AVP sports activities income 4 ANCILLARY AND OTHER INCOME	2021 2020 £ £ 47,260 43,090 208,655 244,414 108,610 65,389 364,525 352,893 2021 2020
	£ £
School shop, School trips and Other income Profit on sale of fixed assets 5 OTHER TRADING ACTIVITIES Rents receivable	78,523 274,128 1,328,697 472,161 1,407,220 746,289 2021 2020 £ £ 113,290 130,351

DULWICH PREPARATORY SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

6 ANALYSIS OF EXPENDITURE Staff costs (Note 7) £ Raising funds Financing costs 362,005 Total costs of raising funds 362,005 Charitable expenditure Teaching 10,733,136 Welfare 333,879 Premises 630,701 Support costs 1,835,193 Total charitable expenditure 13,532,909 Total expenditure 13,894,914	Depreciation (Note 9) £ -	Other costs £ 110,551
362,005	-	110,551
	- - 1,240,783 -	914,000 1,098,186 2,121,479 1,074,319
13,532,909	1,240,783	5,207,984
13,894,914	1,240,783	5,318,535

Financing costs include a past service cost of £355,000 in respect of pension equalisation which is not expected to recur, as detailed in note 15.

Trustee costs Legal and consultancy fees Remuneration paid to auditor for audit services 7 STAFF COSTS The aggregate payroll costs for the year were as follows: Wages and salaries Social security costs Pension costs and other benefits Support costs include the following relating to governance	2021 2020 £ £ 6,961 5,956 11,790 11,790 33,000 30,750 2021 2020 £ £ 10,688,740 10,741,109 1,041,737 1,061,542 2,164,437 1,872,264 13,894,914 13,674,915

DULWICH PREPARATORY SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

7 STAFF COSTS (Continued)

Aggregate employee-benefits of key management personnel amounted to £520,416 (2020:£574,033) including pension contributions of £66,383 (2020: £66,067).

Number of higher paid employees in bands of:	2021	2020
£60,001 to £70,000	11	14
£70,001 to £80,000	5	3
£80,001 to £90,000	-	1
£100,001 to £110,000	-	-
£120,001 to £130,000	2	2
£150,001 to £160,000	-	-
The number with retirement benefits accruing
- in Defined Contribution schemes was	4	4
of which the contributions amounted to	54,431	50,157
- in Defined Benefit schemes was	16	16

One higher paid member of staff moved from defined benefit to defined contribution scheme in November 2019.

The average number of the Group's employees during the year, calculated on headcount, was

Teaching Domestic and estates Administrative	2021 2020 191 201 40 49 93 81 324 331

During the year there were redundancy or termination payments which amounted to £64,903 (2020: £36,896) of which £nil was outstanding for payment at the year end.

8 TRUSTEE COSTS AND RELATED PARTY TRANSACTIONS

During the year, there was no re-imbursements to Trustees in the year (2020: £nil) and no other amounts (2020: nil) paid to Trustees. During the year no Trustee (2020: 1) received reimbursements of expenses for travel and subsistence (2020: £97). During the year £30,000 (2020: £30,000) was paid to M J Tiplady for consultancy related to the Trust's property portfolio and £297 (2020: £643) for expenses for travel. The payments are permitted under the Trust's governing document.

In the year at Dulwich Prep London one Governor was re-imbursed for travel expenses £78 (2020: 1 Governor received £36).

In the year at Dulwich Prep Cranbrook there were no re-imbursements for expenses for travel and subsistence (2020: £nil).

DULWICH PREPARATORY SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

9 TANGIBLE FIXED ASSETS

9 TANGIBLE FIXED A	SSETS
Group
Cost	Freehold property £	Leasehold Land and Buildings improvements £	Furniture Fixtures and Equipment £	Office Equipment £	Vehicles £	Total £
At 1 September 2020	25,267,096	36,236,829	2,055,795	1,039,106	126,513	64,725,339
Depreciation At 31 August 2021 Additions Disposals	- - 25,267,096	2,014,313 (3,803) 38,247,339	88,443 (8,775)	160,945 (13,722)	- -	2,263,701 (26,300)
			2,135,463	1,186,329	126,513	66,962,740

At 1 September 2020	8,500,654	11,031,801	1,580,431	880,292	107,108	22,100,286
Charged in year Disposals At 31 August 2021 Net book values At 31 August 2020	560,086 - 9,060,740 16,766,442	507,911 - 11,539,712 25,205,028	77,639 (731)	89,881 (13,722)	5,999 -	1,241,516 (14,453)
			1,657,339	956,451	113,107	23,327,349
			475,364	158,814	19,405	42,625,053
At 31 August 2021	16,206,356	26,707,627	478,124	229,878	13,406	43,635,391
						0
Trust
	Freehold property	Leasehold Land and	Total
Cost	£	£	£
At 1 September 2020	25,248,036	35,952,647	61,200,683
Additions	-	1,891,158	1,891,158
Depreciation Charged in year Disposals At 31 August 2021 Net book values At 31 August 2020 At 31 August 2021 At 1 September 2020 Disposals	- 25,248,036 8,499,691 559,603 - 9,059,294 16,748,345	(3,803) 37,840,002 11,029,234 501,392 - 11,530,626 24,923,413	(3,803)
			63,088,038
			19,528,925 1,060,995 -
			20,589,920
			41,671,758
At 31 August 2021	16,188,742	26,309,376	42,498,118

At 31 August 2021 the Group had capital commitments of £nil (2020: £330,989).

DULWICH PREPARATORY SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

10 DEBTORS	Group 2021	Group 2020	Trust 2021	Trust 2020
	£	£	£	£
Fee debtors Sundry debtors Prepayments	110,929 198,122 291,661	131,297 700,426 366,635	- 38,311 30,417	- 366,667 116,287
	600,712	1,198,358	68,728	482,954
11 CREDITORS: amounts falling due within one year Group 2021 2020 Group			Trust 2021	Trust 2020
	£		£	£
Trade creditors Social security and other taxation Fees in advance Other creditors Fee deposits Amounts owed to subsidiaries	546,100 267,262 1,790,497 254,984 1,583,354 -	330,973 259,062 1,697,146 283,028 1,463,154 -	102,745 - - 4,385 - 3,747,921	58,055 - - 5,725 - 4,133,584
Bank loan	694,760	285,436	694,760	285,436
Accruals	420,049	497,745	183,802	315,667
	5,557,006	4,816,544	4,733,613	4,798,467

12 CREDITORS: amounts falling due after more than one year

Loans due within two to five years Loans due in more than five years Provision for dilapidations Fees in advance	Group 2021 £ 2,822,579 52,054 85,266 18,660	Group 2020 £ 2,903,136 679,219 - 33,765	Trust 2021 £ 2,822,579 52,054 85,266 -	Trust 2020 £ 2,903,136 679,219 - -
	2,978,559	3,616,120	2,959,899	3,582,355

The Trust's loan balance comprises drawings under two facilities from NatWest Bank which originally totalled £5 million. The first is a fixed rate loan at 3.14% of which £3 million was drawn in June 2018. It was repayable in equal monthly instalments of £45,755 originally commencing in July 2019. The Trust was granted a 12 month repayment holiday for both facilities following the pandemic in May 2020 as a consequence the loan payments recommenced, at the same rate, in April 2021 and will cease in June 2026; the amount required to repay the loan on 31 August 2021 was £2,463,957 (2020: £2,661,567).

DULWICH PREPARATORY SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

13 CREDITORS: amounts falling due after more than one year (contd)

The second is a variable rate loan at 1.25% above base rate of which £1 million was drawn in November 2018 and a further £300,000 was drawn in November 2019. It was repayable by monthly instalments of £29,280, following the repayment holiday, the payments, at the same rate, recommenced in April 2021 and now will end in October 2026; the amount required to repay the loan on 31 August 2021 was £1,145,401 (2020: £1,233,228).

No further drawings were permitted after November 2019 and there is no penalty for early repayment of either facility. The loans are secured by a charge over certain of the Trust's residential freehold assets which have a net book value of £2.25million and a market value of £6.15 million.

13 FEES IN ADVANCE

Fees in advance will be applied as follows: Within one to two years Within one year	Group 2021 £ 18,660 1,790,497	Group 2020 £ 33,765 1,697,146
	1,809,157	1,730,911
Movements in Fees in advance Opening Fees in advance Amount released to income during the year	1,730,911 (1,697,146) 1,775,392	1,801,690 (1,681,931) 1,611,152
Amount deferred during the year	1,809,157	1,730,911

14 OPERATING LEASE INCOME AND COMMITMENTS

At 31 August 2021 the total of future minimum operating lease income receivable under noncancellable operating leases amounted to:

		Group	Group	Trust	Trust
		2021	2020	2021	2020
		£	£	£	£
Land and buildings	within 1 year	-	-	1,526,350	1,638,100
Land and buildings	2 and 5 years	-	-	6,065,400	6,655,400
Land and buildings	after more than 5	-	-	48,187,850	50,467,200
years

DULWICH PREPARATORY SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

14 OPERATING LEASE INCOME AND COMMITMENTS (CONTINUED)

At 31 August 2021 the total of future minimum operating lease commitments payable under noncancellable operating leases amounted to:

Land and buildings within 1 year Land and buildings 2 and 5 years Other within 1 year Other between 2 and 5 years Land and buildings after more than 5 years	Group 2021 £ 402,300 1,569,200 2,101,800	Group 2020 £ 544,300 2,157,200 3,336,100	Trust Trust 2021 2020 £ £ 402,300 544,300 1,569,200 2,157,200 2,101,800 3,336,100
	153,727 172,832	183,054 274,922	- - - -

The charge in the year was £785,446 (2020: £725,612) for the Group and £458,888 (2020: £543,300) for the Trust.

The Trust signed a lease extension in September 2020 for the site at Dulwich Prep London. As a result of this the minimum operating lease commitments payable increased to £23,127,000 for the life of the lease in September 2020.

15 SUMMARY OF MOVEMENTS ON MAJOR FUNDS

At 1 September 2020 £ 37,726,826 13,840	Incoming resources £ 21,237,866 2,584	Resources expended £ (20,454,232) -	Gains/ (Loss) £ 201,000 -	Transfer At 31 August 2021 £ £ 140 38,711,600 (140) 16,284
37,740,666	21,240,450	(20,454,232)	201,000	- 38,727,884
34,367,299 13,362	2,922,484 -	(2,047,035) -	- -	- 35,242,748 - 13,362
34,380,661	2,922,484	(2,047,035)	-	- 35,256,110

The comparative 2020 figures can be found in Note 21. A transfer of £140 (2020: £2,000) has been made during the year to reflect restricted income spent on musical instruments (2020 - Bursary awards).

DULWICH PREPARATORY SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

16 SUMMARY OF NET ASSETS BY FUNDS

SUMMARY OF NET ASSETS BY FUNDS
Group Tangible Assets Net Current (Liabilities) / Assets Trust Tangible Assets Net Current (Liabilities) / Assets Long Term Creditors Long Term Creditors including Pension Liability	Unrestricted Funds £ 43,635,391 (1,402,227) (3,521,564)	Restricted Funds Total Funds £ £ - 43,635,391 16,284 (1,385,943) - (3,521,564) 16,284 38,727,884 - 42,498,118 13,362 (4,282,109) - (2,959,899) 13,362 35,256,110
	38,711,600
	42,498,118 (4,295,471) (2,959,899)
	35,242,748

The comparative 2020 figures can be found in Note 21.

17 PENSION SCHEMES

Current retirement benefits to employees of the Group are provided through one defined benefit contributions. There is also a closed defined benefit scheme that operated for non-teaching staff.

Defined benefit scheme

teaching staff in the year, Dulwich Prep Cranbrook participated in the scheme until 31 October 2019. The pension charge for the 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. Dulwich Prep London left the scheme on 31 August 2021.

The TPS is an unfunded multi-employer defined benefits pension scheme governed by The 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 the TPS was prepared as at 31 March 2016 and the Valuation Report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%.

DULWICH PREPARATORY SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

17 PENSION SCHEMES (CONTINUED)

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 to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions

On 27 June 2019 the Supreme Court denied the government permission to appeal the Court of 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 consultation, the government 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 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 to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020, and a consultation was launched on 24 June on proposed changes to the cost control mechanism following a review by the Government Actuary. Following a public consultation, the Government have accepted three key proposals recommended by the Government Actuary, and are aiming to implement these changes in time for the 2020 valuations.

In view of the above rulings and decisions the assumptions used in the 31 March 2016 Actuarial Valuation may become inappropriate. In this scenario a valuation prepared in accordance with revised benefits and suitably revised assumptions would yield different results than those contained in the Actuarial Valuation.

Until a remedy to the discrimination conclusion has been determined by the Employment Tribunal 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.

DULWICH PREPARATORY SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

17 PENSION SCHEMES (CONTINUED)

Following a full consultation process an alternative defined contribution pension arrangement was offered which was accepted by all the staff involved. This new arrangement provides for employer contributions (inclusive of life assurance premiums) at the same level as the TPS Scheme and initiated the new arrangement with effect from 1st September 2021.

in September 2019, the Dulwich Prep London 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 the decision was made to leave the TPS with effect from 31 August 2021.

Defined contribution scheme

The pension cost charge in the year in respect of the defined contribution schemes was £600,695 (2020: £600,695). The significant increase is a result of Dulwich Prep Cranbrook leaving the TPS on 31 October 2019.

Non-teaching defined benefit scheme

The Trust operated this Scheme (the Dulwich Preparatory Schools Trust Non-Teaching Staff Pension Scheme), which was closed on 31 December, both in respect of new members and accrual for existing members.

On 1st September 2017 the Trust transferred the obligations to contribute to the Scheme to each of the Schools. The valuation in these accounts has been derived by projecting the results of the last comprehensive actuarial valuation of the Scheme as at 1 January 2018 and have been prepared by an independent qualified acturary.

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. The schools have recognised a past service cost in respect of equalisation estimated at £355,000.

a) Present value of funded obligations Fair value of scheme assets Net (Liability) The amounts recognised in the balance sheet are as follows	Group Group 2021 2020 £ £ (3,120,005) (2,881,000) 2,577,000 2,352,000 (543,005) (529,000)

DULWICH PREPARATORY SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

17 PENSION SCHEMES (CONTINUED)

b) Opening defined benefit obligation Interest cost Past service cost Actuarial losses Benefits paid Closing defined benefit obligation c) Changes in the fair value of the scheme assets Changes in the present value of the defined benefit obligation	Group Group 2021 2020 £ £ 2,881,000 2,850,000 46,000 51,000 355,005 - (136,000) 39,000 (26,000) (59,000) 3,120,005 2,881,000 Group Group
	2021 2020
Opening fair value of scheme assets Interest income Return in excess of interest income Contributions by employer Benefits paid Closing fair value of scheme assets d) Past service cost Interest on obligation Interest income The amounts included within the Statement of Financial Activities Total amount charged to the Statement of Financial Activities	£ £ 2,352,000 2,251,000 39,000 41,000 65,000 (28,000) 147,000 147,000 (26,000) (59,000) 2,577,000 2,352,000 Group Group 2021 2020 £ £ 355,005 - 46,000 51,000 (39,000) (41,000) 362,005 10,000
Net actuarial (losses) recognised in the year	201,000 (67,000)

The Group expects to contribute £160,748 in 2021/22 (2020: £147,000). The existing obligations have been assumed by the Schools in proportion to their ongoing contributions as calculated by the Scheme Actuary following the triennial actuarial valuation as at 1 January 2021.

DULWICH PREPARATORY SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020

Principal actuarial assumptions at the balance sheet date
	2021	2020
Financial Assumptions
Discount rate	1.7%	1.6%
RPI inflation assumption	3.4%	3.0%
Rate of increase of pensions	3.7%	3.3%
Rate of increase of pensions	2.6%	2.2%
Assumed life expectancy in years at age 65:
Non Pensioners
Females	26.2	25.4
Males	23.7	23.4
Pensioners
Females	24.4	23.9
Males	22.0	21.9

18 TRANSACTIONS WITH SUBSIDIARY ENTITIES

The Trust received donated staff time of employees of Dulwich Prep London totalling £21,145 (2020: £48,618) recognised in the Trust accounts as a gift in kind. The Trust also received rental income of £1,164,733 (2020: £1,235,600) from Dulwich Prep London and £387,375 (2020: £400,750) from Dulwich Prep Cranbrook. Cash resources for the Group are managed centrally by the Trust and as a consequence at 31 August 2020 £3,408,522 (2020: £3,586,927) was due to Dulwich Prep London and £402,612 (2020: £546,656 ) was due to Dulwich Prep Cranbrook.

DULWICH PREPARATORY SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

20 SUBSIDIARY ENTITIES

Dulwich Prep London

Registered office 42 Alleyn Park, Dulwich, London SE21 7AA Company number 10814894 Charity number 1174356

Abbreviated SOFA
Income
Expenditure
Pension scheme actuarial gains/(losses)
Net movement in funds for the year
Funds brought forward at 1 September 2018
Funds carried forward at 31 August 2019
Abbreviated Balance Sheet
Fixed assets
Cash at bank
Other assets
Creditors: Amounts falling due within one year
Pension scheme liability
Net assets
Total Funds
Creditors: Amounts falling due after more than one
year

2021
2020
£
£
14,358,019
14,658,903
(13,864,041)
(13,797,724)
46,000
(15,300)
539,978
845,879
2,754,741
1,908,862
3,294,719
2,754,741
2021
2020
£
£
976,816
786,376
2,344,870
1,416,420
3,722,674
3,967,663
(3,606,681)
(3,260,853)
(18,660)
(33,765)
(124,300)
(121,100)
3,294,719
2,754,741
3,294,719
2,754,741

DULWICH PREPARATORY SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

20 SUBSIDIARY ENTITIES (Continued)

Dulwich Prep Cranbrook

Registered office	Coursehorn, Cranbrook, Kent,	TN17 3NP
Company number	10815140
Charity number	1174358
Abbreviated SOFA		2021	2020
		£	£
Income		5,535,584	5,886,966
Expenditure		(6,118,910)	(5,858,404)
Pension scheme actuarial gains/(losses)		155,000	(51,700)
Net movement in funds for the year		(428,326)	(23,138)
Funds brought forward at 1 September 2019		605,382	628,520
Funds carried forward at	31 August 2020	177,056	605,382
Abbreviated Balance Sheet		2021	2020
		£	£
Fixed assets		160,453	166,917
Cash at bank		578,241	855,847
Other assets		842,708	881,327
Creditors: Amounts falling due within one year		(985,641)	(890,809)
Creditors: Amounts falling due after more than one		-	-
year
Pension scheme liability		(418,705)	(407,900)
Net assets		177,056	605,382
Total Funds		177,056	605,382

DULWICH PREPARATORY SCHOOLS TRUST CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2021 (Incorporating an income and expenditure account)

21 PRIOR YEAR COMPARATIVE NOTE

(A) 2020 STATEMENT OF FINANCIAL ACTIVITIES

Notes Unrestricted Funds 2020 Income from: £ Charitable activities: School fees receivable 2 18,810,170 Other educational income 3 352,893 Ancillary income 4 746,289 Other trading activities Non-ancillary trading income 5 130,351 Investments Bank and other interest 5,118 Voluntary sources Donations and legacies 21,728 Job retention scheme grant 953,702	Notes Unrestricted Funds 2020 Income from: £ Charitable activities: School fees receivable 2 18,810,170 Other educational income 3 352,893 Ancillary income 4 746,289 Other trading activities Non-ancillary trading income 5 130,351 Investments Bank and other interest 5,118 Voluntary sources Donations and legacies 21,728 Job retention scheme grant 953,702	Restricted Funds 2020 £ - - - - - 2,338 -	Total 2020 £ 18,810,170 352,893 746,289 130,351 5,118 24,066 953,702

Total income Expenditure on: Raising funds Financing costs 6	21,020,251 (141,291)	2,338 -	21,022,589
			(141,291)

Total costs of raising funds	(141,291)	-	(141,291)
Charitable activities Education and grant making 6 Total expenditure Net income Transfer between funds Pension scheme actuarial gains 19 Fund balances carried forward at 31 August 2020 Net movement in funds for the year Fund balances brought forward at 1 September 2019	(19,793,480) (19,934,771) 1,085,480 2,000 (67,000) 1,020,480 36,706,346 37,726,826 37	- - 2,338 (2,000) - 338 13,502 13,840	(19,793,480)
			(19,934,771)
			1,087,818 - (67,000)
			1,020,818 36,719,848
			37,740,666

DULWICH PREPARATORY SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

21 PRIOR YEAR COMPARATIVE NOTES (CONTINUED)

(B) 2020 SUMMARY OF MOVEMENTS ON MAJOR FUNDS

At 1 September 2019 Incoming resources £ £ Group Unrestricted funds 36,706,346 21,020,251 Restricted 13,502 2,338 Total funds 36,719,848 21,022,589 Trust 34,169,222 2,161,261 13,362 Total funds 34,182,584 2,161,261 (C) 2020 SUMMARY OF NET ASSETS BY Group Tangible Assets Net Current (Liabilities) / Assets Trust Tangible Assets Net Current (Liabilities) / Assets Long Term Creditors Unrestricted Restricted funds Long Term Creditors including Pension Liability General reserve	Resources expended £ (19,934,771) - (19,934,771) (1,963,300) - 1,963,300 - FUNDS Unrestricted Funds £ 42,625,053 (753,107) (4,145,120) 37,726,826 41,671,758 (3,722,220) (3,582,355) 34,367,183	Gains/ Losses £ (67,000) - (67,000) - - - Restricted Funds £ - 13,840 13,840 - 13,362 13,362	Transfer £ 2,000 (2,000) - - - -	At 31 August 2020 £ 37,726,826 13,840 37,740,666 34,367,183 13,362 34,380,545 Total Funds £ 42,625,053 (739,267) (4,145,120) 37,740,666 41,671,758 (3,708,858) (3,582,355) 34,380,545