Company No. 579923 Registered in England Charity No. 312715 DULWICH PREPARATORY SCHOOLS TRUST ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 DULWICH PREPARATORY SCHOOLS TRUST ANNUAL REPORT OF THE TRUSTEES YEAR ENDED 31 AUGUST 2022 The Tru51ees present their annual report together Y￿th the audited financial statem8nts of the Oulwich Preparatory School6 Trust (the Trust) for the year ended 31 August 2022. The Trustees confim that the annual report and financial statements of the Trust comply wtth Ihe current statutory requirements, the requirements of the Trusfs governing document and the pro￿510n$ of the Statement of Recommended Prdctic8 (SORPI "Accounting and Reporting by Charitles" (Charities SORP FRS102). Status and admlnistratlon The Trtjst is a ￿rnpany limited by guarantee (Company Number 579923) and is registered wth the Chaiity Commission under Charity Number 312715. Trustees. responsibllltlos Thè Trust8es (who arè also dire¢tors of Duhmch Preparatory Schools Trust for the purposes of company law) are resFrtMsible for preparing the Tnjstees. report (induding the strategic report) and the financial statements in accordance appluble law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Praclice). Company law requires the Trust88S to prepare financial statements for each financial year. UrKler company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and faif view of the state of affairs of the Trust and of the incoming ￿SOurceS and application of resources, induding the income and expenditure, of the Trust for that period. In sxeparirg these financial statements, the Trustees are required to: select suitable accounting policies and then apply them consistentty: observe the methods and principles in the Chartties SORP.. make judgments and accounting estimates that are reasonable and prudent" stste whether appllcable UK Accounting Standards have been followed, subject to any material departU￿S disdosed and explained in the financial statements; prepare the financial statements on the going c￿ncern basis unless tt is inappropriate to presume thal the Trust will continue in operation. The Trustees are tesponsible for keeping adequate accounling reGords that are suffiGient to show and explain the Trust's transactions and disdose with reasonable accurd¢y at any time the financial position of the Trust and enable them to ensure that the financial statements comply th the Companies Act 2006. They are also resFonsible for safeguarding the assets of the Trust and hence for taking reasonatle steps for the prevention and detection of fraud and other irregularities. Each of Ihe persons who ar8 Trustees at the time vthen this Trustees, report is approved has confimied that: so far as each Trustee is aware, there is no relevant audit infonnatv)n of which th8 Trust's auditor is unaware, and each Trustee has taken all the st8PS that ought to have been taken as a Trustee in order to be aware of any relavant audit information and to establish that the Trust's auditor is aware of that infonnation. DULWICH PREPARATORY SCHOOLS TRUST INDEPENDENT AUDITOR'S REPORT FOR THE YEAR ENDED 31 AUGUST 2022 STRUCTURE, GOVERNANCE AND MANAGEMENT The Tmsl is the parent charity of hyo independent school charities, Dulwich Prep Cranbrook and Dulwich Prep London ('the Schools')- together Ihe Group-. 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 Du￿￿Ch Preparatory Schools Trust. together with all the Govemors of the Schools. Th9 Trust'$ Artidgs reflgct thg Companigs Act 2006 and the Charitie8 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 Twsl Board who served in office as Trustees durin9 the year and subsequently are detailed below.. Mr O H Nelson Independent Chaimkqn Nominated by the Goveming Body of Dulwich Prep Cranbrook: retired from 8th July 2022 Nominated by the Goveming Body of Dulwich Prep Cranbrook: retired from 31 gl October 2022 Mr A P Anderson11 Mr M StJ Ashley Dr S J Bailey MrTMDurie Independent Trustee Nominated by the Goveming Body of Dulwich Prep Cranbrook.. from 1° November 2022 Mrs E K Kelleher Nominated by the Goveming Body of Dulwch Prep London Nominaled by the Goveming Body of Dulwich Prep Cranbrook: from 1* November 2022 Mrs S L Rynehart MrJDHSteel Nominated by the Goveming Body of Dulwch Prep London Independent Trustee Mr M J Tiplady Officers SeGretary to the Tnjstees: N B Holliday Professional Advisers Bankers.. Natwest Bank plc, 120-122 Fenthurch Street, London EC3M 5BA Solicitors: Farrer & Co LLP, 66 Lincoln's Inn Fields. London WC2A 3LH Auditor: Crowo U.K. LLP, 55 Ludgate Hill, London EC4M 7JW DULWICH PREPARATORY SCHOOLS TRUST ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022 Managemènt Structurn Thè Board meets a minimum of three times Per year, normally once per academic t8m. There ar8 three Independent Trustees, induding the Chairman, and each of the Schools nominat8S two of its Govemors (normally induding the Sch(x)I's Chairman) as Trustees. The Board has a Finance Committee wthich meets a week or two prior to Trust Board m88tings. and at other times when necessary, to discuss financial matters on which it advises the Board. The Trust considers the perfotttkanGe of eaGh School. their futur8 planii, budgets lind opvrdtion. tQgether with applications for capital investment. Trustee Recrultment & Tralnlng The Board is $8lf-appointing, with new Trustees identified afKJ appointed following agreement from all current Trustees. Trustees serve for an inttial temi of four years. but may offer themselves for revelection for a second term of four years and then a final term of two years, making ten years in totsl, except in exceptional circumslanc8s. New members of the Board are 818Cted on the basis of the candidates. professional qualities, experience, personal Competen￿ and the specific needs of the Trust. New Truste85 ar8 inducted into the workings of the charitable company via a programme organised by the Secretary. The Seuetary wll also notify members of the Board of relevant exiemal Trustee training and infomation courses and seminars designed to keep them inforrned and updated on current issues in the sector and regulatory requirements. Charlty Codo of Govornanco The Board takes its govemance responsibilities seriously and the Group aims to have a governance framework that Is fft for purpose, ccynpliant and eff￿lent. The Group has established solid foundation in governan￿ in vthich all of its Tnjstees are clear about their roles and legal responsibililies. are committed to supporting the Trust in delivering its objects most effectively for the bonefrt of 118 beneficiarie8 and contributing to the continued improvement of tho Schools. The Group meets the key outcomes set out in the seven areas of the Charity Govemance Code. The structure of the Group and the relationship between the Trust and the h¥0 Schools are designed in suth a way as to ensure that recommended practice is observed and, spectfic aspeds are delegated to the Schools, th8se aspects are regularfy monitored. Employment pollcy The Trust and each of the Schools is an equal opwrtunilies employer. Full aTrJ fair consideration is given to job appl￿A￿.0nS from disabled persons and due consideration is given to their training and employment ne8ds. Consuttation with employees, or their representatives, has ¢ontinu8d at all levels with the aim of taking the views of employees into accounl when decisions are made that are likely to affect their interests. Employees are made aware of the finanaal and econ(Nnic perfomance of the relevant Schryjl. Communication th emptoye8s continues through nomal management channels in a variety of fomis. The Trust's only employee is the S8cretary who is part time. DULWICH PREPARATORY SCHOOLS TRUST ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022 STRATEGIC REPORT The remainder of the rewrt of Ine Trustees also Conststutes the strategic report for the purposes of the Companies Act 2006. Principal activity and objocts of the charitable company The principal activtty of the Trust is tho advanGemenl of education in tho United Kingdom and elsewhere. currently through the support provided to the two Schools. The Board is mindful of th8 loro-standing need to provide public benefit and strives to do so ttirough the support of development in education generally, through bursaries (mainly provided by the two SchcM)Is), through w0￿1ng with other edL￿at￿al bodi8s and the promotion of best practic8. Alm The Trustees, aim is thal pupils at the Schools should b8nefit from the provision of first dass facilities to enable thom to fulfil their potential on all fronts- academic, artistic. dramatic. musical, sporting, social and moral. Prfmary objectlve The Trust is a charktable trust which promotes the advancement of education in a broad context and In particular at its two Sch(M)Is in London and Kent. Strategies to achlevo the prlmary objectlve The Trust seeks to achieve its primary objective through the implementation of the following strategies.. By providing an ex￿lIent education at Dulwich Prep Cranbrook and Dulwich Prep London. Through the provision of bursarles and other finandal support to enable childrèn vthose parents would not otherwise be able to afford the fees to benefrt from an education at the Schools; By raising funds in supp)rt of education and organising. or making grants towards, lectures, seminars, broadcasts or Courses of instruction: By conshjering ways in which technob3y can be can be used to enhance t8aching and learning; Through the provision of dassrooms and buildings generally in connection educalion at Du1V￿Ch Prep London and Dulwith Prep Cranbrook and 8lsevthero,' Through the provision of playing fields, games wurts, recreational grounds and pavilions, swimming poc45 and other facilities in connection with sports, games and recreational a¢tivities of all kinds at Du1V￿Ch Prep London and Dulwich P￿p Cranbrook and elsewhere: DULWICH PREPARATORY SCHOOLS TRUST ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022 By setting rents at a level to ensure the financial viability of th8 Schools and at a level that is consist•nt with future capitsl investment to provide a first dass education to boys and girls at the Schools., Through the maintena￿9 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 by18nding money to facilitste the cash flow of each School. The Trust considers bids for capital expenditure from the Schools to enhance the Schools. facilities. The Trust provided £500k to fund an enhancement of the Pre-Prep facilty at Dulwich Prep London vthich was completed in August 2021. While much of the Trust's property is freehold it leasas parts of its London facilities from the Dulwich Estate. In February 2021 a 50 year lease extension to 2081 was signed on the main sile which extends the Trust's leases on its key London facilities for the benefrt of DU￿¥1¢h Prep London. In January 2022, the Trust entered into new tease agreements ￿th Dulwich Prep London for these properties and certsin other prOPert￿S owned by the Trust and used by the School. The leases belween the School and the Trust are on substantially similar terms las to rent. rent review and dLJratit)n) to th8 lèasÈs bÈtw@Èn thè Trust and thp Dulwcth EstAtp. A strategic rewew at Dulwich Prep Cranbrook conducted during the year has led to the decision to extend the scope of the School's education to the age of 16+. This will inv(Ave swJnfficant redevelopment of its existing faciltties and the Trust has agreed to provide funding in the r￿lon of £2 rnillion to effect this project. The project is expected to commence in eady 2023 wth planned completion in time for the start of the academic year 2023124 in September 2023. A strategic review is also undep*ay currently at Du￿1Ch Prep London. Publlc benefit The Tru8t ramain8 committed to the aim of providing public bonofil in accordanco with rls founding principles. Charity legislation includes a requirement to demonstrate public benefrt for any charitable purpose where it had hitherto been presumed in the absence of evidence to the contrary. This calls in tum for wmrnensurate disdosur8 of our public benefrt aims. The awarding of bursaries for the needy is a measurable means of providing public benefrt. The Board takes the wew that bursarieg awarded to those who would not othorwsc bc ablc to afft)rd the fees are important, but not lo the exclusion of the much wider benefrt that the Trust provmjes within the community. Th8 Trust's public benefit commitrnent is Cu￿entlY delivered primarily thfough the two Schools, each of which has a bursary programme. During the year the Trust's Schools provid8d means-tested bursary support totalling £449k to 40 pupils (2021.. £445k to 38 pupils) of which 18 were for 70% or more of full fees. In addition. there was support for local Gharitios and educational bodies through fund-rai3ing aclivities, outreach programmes and tho loan of facilities. Both the Trust's Schools acts'vely promote child mentsl health awareness V￿th Dulwich Prep London employing a dedicated counsellor while Dulwich Prep cranbr¢￿)k retains Place2Be. Although more limited than in previous years due to COVID-19, a number of state schocAs benefrted from the Trust's Schools in a variety of ways from the use of facilities to support from staff. The Trust does not eNJage with any exiemal third party fundraisers. There have been no complaints in the period regarding inappropriate or intrusive contact in relation to fundraisin9 DULWICH PREPARATORY SCHOOLS TRUST ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022 activities. Streamlined Energy and Carbon Reportlng (SECR) The Trustees have considered the requirements of The Companies IDir8Ctors' Report) and Limtled Liabllllles Partnershlps (Energy and Carbon Report) Regulauons 2018. The two Sr.hools each m8Ot two of tho criteria for non4Iisdosure and therefore aro not roquirad to produce a report. As a r8suIt, since the Trust, as the parent entity. does not produce any emissions, Ihe Trustees have concluded that the Group does r￿t need to submit a retum. Section 172{1) Report incorporating Statements of Employee and Stakeholder engagement The Trustees of the Tru3t, as Directors of thé C¢ynpany, aGt in the way they consider. in g￿j faith. Y￿uld be most likely to promote the success of the Group for th8 benefrt of its members as a vthole and in doing so have regard to.. a) The likely consequ8ncos of any dacision in the lon9 run,. b) The interèsts of the Group's employees; c) The need to foster th8 Group's business relationships., dl The impad of the Group's operations on the community and the environment" el The desirability of the Group maintaining a reputation for high standards of business n The need to act faidy. The Tru8t achieves the 8ucce8B of its wider charitable purpose$ through the activities undertaken by its Schools, which are regularly monitored and assessed. This incorporates the desire to meet the requ1￿mentS of all stskeholders. whether pupils and the wider communty, staff, donors, fee payers and suppliers. The Trustees consider that they have promoted the Trust's charitable purpose. as set OLrt in aims and objectives on page 4, in the follo￿n9 vmys.. a) The likely consequences of any decision in the long run: - The Trustees have considered Ihe loNJ-iem sustainability of Ihe Schools. operations. as set out in the Going Concem section of the Financial Review on page g. - The Board sets and approves strategic diredion and policy, meets three times each year and additionally as required. The Board monitors the work of the Schools through Fts Finance Committee and through reports from the Schools, representatives on the Trust Board. The Finance Committee reviews the Schools. financial plans on a temily basis by monitoring income and expenditure against forecasts within the context of the annual budgets and the rolling 5 year financial P￿ns. Capital expenditure plans and cash flow requirements are also closely reviewed. particularfy in the light of the Trust's borrowing commitin8nts and r8paym8nt requiremants. - Rlsk management Is Incorpordte(l inlo all of the Group s OP8r8tiOll5 and robust risk management procedures are well established. The most signrficant risks ar8 discussed at each relevant Trust Board meeting. Further details are contained on pages 9 & 10. The Trustees review ar¢d endorse all policies to ensure consistent long term regulatory compliance. bl The interests of the Group's employees: - Authoritative and frequent communicat￿n with staff at th8 Schools has been conducted DULWICH PREPARATORY SCHOOLS TRUST ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022 by regular staff team meetings and routine weekly written communications to staff and parents. Staff hav8 baen kept informed atx)ut staffing, financial and Strateg￿ Issues affeairKJ them and the Schools. - Full detsils of the empfoyment pdicy are contsined on page 3. - The Trustees receive regular reports on staff matters through the sch(x￿s, termly reports. - All senior management are involved in thc oarty =tagos of the strategic plan development. arKI staff are updated on the plan and priorities at the Start of each academic year. - Meaningful engagement IS 8ncourag8d through the staff forum at each School where employees across all departments discuss and make recommendations direct to senior management. A divefse programme of well-being activities is available lo all staff. - At both Schools there was a full consultation programme prior to each School's de(ision to withdiaw ftutn the Teach8r5' Pension Sch8me. c) The need to foster the Group's relationships with stakeholders.. - The Group's bonoficiari8s and donors ar8 th8 focus of all th8 Schools, oporations. - A fair and consislenl selection policy ensures a diverse and thriving pupil body who are fully supported throughout their education from nursery to extemal examinations for the Senior schools of their choice, enablin9 and preparing pupils for later lrfe. - Robust recruitment of the best teachers and valuing staff supports stabrfty and a high standard of education. - A fair policy of bursary awards. consistently applied. supports famili8s who may not otherwFse be able to access education at the Schools. - The parent contract foms the basis of the relationship with fee payers. This is revieblpd regularly io ensure best praaice and then applied fairly and conslstenily. Parental engagement is maintained through regular correspond8nce and temily publications. - Al suppliers are treated fairly and promptly wFth adherencè to business temis. - The Group receives regular reports and updates in fundraisiro regulalions trirough the Schools. the Schools do not engage with any exlemal third paty fundrais&rs. d) The impact of the Group's operations on the ￿MmUnty and the environment: - The Group supports the Schools in undertaking a full provision of community and partnership activity. - Full detai15 are ￿￿tair￿ on page 5. el The desirabilty of the Group maintaining a reputstion for high standards of business conclucl.. - The Schwls, Bribery Policies set out the responsibiltties for staff to report any incidents or suspicion of fraud. bribery or wrruption arising in the course of their work and to cooperate fully with related investigations. The Schools take a zero tolerance approach lov￿rdS fraud, bribery and comjption. The Whistleblowing Policies support staff in Ihis approach. fj The need to act fairly: - All Trustees and senior staff complete an annual Confiict of Interest Dedaration. There have been no reported incidents of Una￿VIC1bl￿ iuldliuiibliips. DULMCH PREPARATORY SCHOOLS TRUST ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022 ACHIEVEMENTS AND PERFORMANCE Revlew of achievoments and perfomiance for the year At the start of the year th8 Schools ujntinued to be affected by COVID-19 and various control measures V￿re initiat8d which enabled the Schcds to remain open. As the control measures were relaxed during the year the Sch(K)Is' academic limelable retumed to normal, including the provision of art, drama. music and sport. Furth8nnore. the Schools. typical programme of events. induding concerts, matches, museum & other visits and overseas trips, were reinstated. D8SPit8 the 8arty disruption th& Trust's Schoo15 Sgnt 157 pupils to ovor 45 dtffgrgnt senior schrx)Is, induding many of the top schools in the UK. Between them these pupils gained the offer of 84 schdar5hips and awards. The Trusl's recognition of the importance of providing a first class education was demonstratod by tho variety of these award3 which w6r6 8¢hieved not only for acad8mic success, bul also for art, DT, music and sport. Th8 £4.3 million bank loan taken out by the Trust to fund the Lower Schwl project in London project is being repaid in accordance with the terms of the loan. The development of the Pre- Prep facility to create two new dassrooms vrds Compleled in August 2021 and funded by the Trust in sup￿1 of Dulwith Prep London. FINANCIAL REVIEW The Group's net income for the year ended 31 August 2022 amounted to £1,684.920 (2021.. £786.2181. The nat b¢x)k value of fixed assets amounled to £43,151.678 (2021: £43,635.391). The Trust receNes income through the rents received from the Sthools for their use of educational and residential property. It also bonefits from donations of surplus funds from the Schools when the Schools. reserves policies pemiit. In addition, the Schools seek to enhance their income through letting their facilities both to regular and casual hirers. In the earfy part of the year there were certain restrictions on these lettings. as well as the holiday activity programme run by Dulwlch Prep Lon¢Jon, but these lettlngs recovered durtng the year, although with a conseqLI@ntial reduction in income over the full year. Reserves The Trust's reserves policy is to maintain its free unrostricted reseN6s at a minimal level gNen the confidence tt has in its continuing income stream from the Schools, l)oth from rents and from any surpluses. At any time. how8V8r, tt may build up rese￿eS in anticipation of a future capital proj8Ct to 5UPPOrt the Schoo15 01 to 5UPPQrt its other GharitaLle vbjeL1ivvs. Alleiii¢iliv¥lyi as at present, it may be prepared to IxJrrrTrw fijnds frjr th8 Ahort to m8dium t8mi to invest in c2Pital projects to support the Schools. At the year end. therefore, the Trusl had negative free unrestricted reserves of £4,345.21812021: £7.255,370). Funds held by the Group at the year- end totallod £40,813,804 (2021: £38,727.884) with n¢galive frèe unrestricied raserves of £2,360,731 (2021: £4,378,202). DULWICH PREPARATORY SCHOOLS TRUST ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022 The Trustees have considered Ihe reserv8s policy and have conduded that no adjustments to the policy n8ad to be mad@. Golng concern All the pupils retumed to the Schools for the start of the Autumn Tenn 2022. 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 currenuy under consideration and Oulwich Prep Cranbrook has announced the intention to expand to ag8 16+ No decision on future strategy has yel been taken at Dulwich Prep London. However, negotiations have been opened with Southwark CouncAI over the assiqnment of the unexpired temi of their lease of the Mary Datchelor plawng fields from the DUK￿Ch Estate. Having ass8s3ed both the Trust's and the Group's finaiiudl pv>itiDn an(J its available facilltles, the risks to which it is exposed and the detailed cash projections noted above the Trustees are satisfied that il remains appropriate lo prepare the ststements on a going con￿rn basis. Future plans . To contlnU8 to stretth and challeng8 all pupils academically irrespethe of Iheir level of ability and to offer them a broad range of artistic. musical and sporting options. To give children the opportunity lo move on to a large and varied range of senior schools. . To continue lo seek and provide opportunities to engage with local maintained schools and the wider community and through this to ensure staff. parents and pupils have an appreciation of the worfd around them and the drfference they can make. . To offer bursary places at the Schools to pupils whose parents would not otherwise be able to afford the fees. • To continue to increa88 pupil numbers. To continue to ensure financial stability. . To retain high perfoming staff and provide them wrth developmental training. To continu8 to develop the Schcrf)Is' sites as and when required to fulfil the Schools, strategies. PRINCIPAL RISKS AND UNCERTAINTIES The Trustees consider the affordabilty 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. Furthermore, polential changes lo the tax and charitable ststus of independent schools introduced by future govemments pose an additional challenge. Enrolm8nt is a critical issue at both Schools and this is dosely 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 th8 SchLKJls is impressive and the risk5 associated with all activities are minimised by thorough ￿annIng and risk assessment. DULMCH PREPARATORY SCHOOLS TRUST ANNUAL REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022 Dèlailgd consideration of risk 15 undertaken for each School by its Board, input from the Senior Leadership Teams. The Trust also tton.4idp.rs risk at Group level and th8 Risk R8gistér is a stsnding item at each Board meeting. The risk manag8ment prooss and the resulting register identify risks, assess their impad 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 actiwty in London is kept under dose ￿￿ew. The generic controls us@d by the Trust to minimisg risk include.. detailed lerms of referenc8 tcgether with formal agendas for Board activity: strategic development planning, r8vi6wed annually by the Board; comprehensive budgeting and management accounting., established organisational structures and lines of reporting., fomal written policies induding dear authorisatiw and approval levels; vettlng procedures as required by law for the protection of the vulnerable. The Trust8es regularly raV￿w the effectiveness of curr8nt plans and strategies for managing all identified major risks for the Group. Approved by the Board of Dulwich Pr8paratory Schools Trust, induding, in their capacity as company directors. approving the Directors, and Strategic Report contained therein, and sKJn8d on its behalf by= D H Nelson Chalrnjan Date: 10 DULWICH PREPARATORY SCHOOLS TRUST INDEPENDENT AUDITOR'S REPORT FOR THE YEAR ENDED 31 AUGUST 2022 Oplnlon We have audtt8d the financial stslements of Duhvich Preparatory Schools Trust 'the charitable company. and its subsidiaries Ihe Group, for the year ended 31 August 2022 which comprise the Consolidated 8￿te[lIevil of Financial Activities. Gonsolldaled and Company Balance Sheets. Consolidat8d Statem8nl of Cash Flnwq and notes to th8 financial statements. including signtfiGant accounting policies. The finan￿al reporting fraM8v￿rk that has been applled in their preparation is aP￿Icable law and Unite(l Kingdom Accounting Stsndards. including Financial Reporting Standard 102 The Financial Reporting Standard applicabl8 in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial ststements: give a true and fair view of the stste of the Group's and the charitable cotnpanvs affairs as at 31 August 2022 and of the group'sl income and expenditure, for the year then ended," have b88n propwly prepared in ac£ord2nrtsJ with Unrtod Kingdom G8n8rally AiYApt8d Accounting Practice; and hav8 b88n prepared in accordance with th8 requirèments of the Companies Act 2006. Basls for oplnlon We conducted our audit in accordance with Intemational Standards on Auditing (UK) {ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in th8 Auditorfs rasponsibilities for the audit of the finanaal statements section of our report. We are independent of the Group in accordance the èthical requirements that are relevant to our audit of the financial statements in the UK, induding the FRC'S Ethical Slandard. and we have fulfilled our other ethlcal responsibilities in accordance with these requirèménts. WÉ believe that Ihe audit evidence have obtsined is sufficient and appropriate to provide basis for our opinion. Concluslons rolatlng lo golng concern In auditing the financial statements, we have conduded th81 the Trustees, use of the going concem basis of accounting in the prgparation of the financial statements is appropriate. Based on the work we have perfonned. we hav8 not identified any material uncertainties relating to events or conditions that, individually or cdlectively, may cast significant doubt on the Charitable ccrfnpany'$ or the Group's ability to ¢ontinue as a going Gonrnm for a period of al least twelve months from ￿en the financial statements are authorised for issue. Our responsibilities and th8 rèsponsibilities of the TnJst8es with rèspect to going concem are described in the rdevant sections of this report. Other Informatlon The Trustees are responsible for the other infornation cL)ntained wthin the annual rep)rt. The other infomation comprises the infomation induded in the annual report. othèr than the financial statgmonts and our auditorfs rgport theroon. Our opinion on the financial statemgnts do8s not cov8r the other information and, except to the extent otherwise expliGilly ststed in our report, we do nol express any form of assurance condusion thereon. 11 DULMCH PREPARATORY SCHOOLS TRUST INDEPENDENT AUDITOR'S REPORT FOR THE YEAR ENDED 31 AUGUST 2022 Our responsibilty is to read the other infomiation and, in doing so, consider whether the other infomiation is matarially inconsistent with th6 financial Statements or our knO￿edge obtained n the audit or otherwse appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatemenls, we are required to determin6 vtheth8r this gives rise to a material misststement in the financial slalements th8mselves. If, based on Ihe work we have perfomied. we conclude that there is a material mis51alement of this other information, we are required to report that fact. We have nothing to reFQrt in this regard. Opinlons on other matters prescrlbed by thè Companles Act 2006 In our opinion based on the V￿rk undertaken in the course of our audit the infomiation given in the Trustees, reFM)rt. vthich indudes the directors, report and the strategic report prepared for th6 purposes of company law. for the financial year for which the finanual statements are prepared is CC￿sIStenI with the financial statements; and the strategic report and the directors. report induded within the Trust8es' report have been prepared in accordance with applicable legal requirements. Matters on whlch we are roqulred to report by exception In light of the kn￿edge and understanding of thè Group and charitable company and their environment obtained in the course of the audit, we have not identified material misststements iii the strategic iepjrt oi the directots, report included within the Trustees, report. We have nothing to ￿port in respect of the following matters in relallon to which thè Companies Act 2006 requires us to report to you rf, 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 retums,. or certain disclosures of TN5tees' remuneration s￿lfied by law are not made; or we have not received all the infomiation and explanations we require for our audit. Ro8ponslbllltlos of trustees As explained more fully in the Twslèes. responsibilities statement set out on page 1, Ihe Trustees (who are also the directors of the Gharitable company for the purposes of company law) are responsiblè for the preparation of the financial statements and for b8ing satisfied that they give a true and fair view, and for such intemal control as theTrustees det8mine is necessary to enable the prèparation of financial statements that ar8 free from material misstatgment. whothor duo to fraud or error. In pr6paring the financial ststements. the Trustees are responsible for assessing the charitsble ¢ompany's ability to continue as 8 going ¢onc8m, disclosing. as applicable, matters related to going concem and using the going concem basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic allemative but to do so. 12 DULWICH PREPARATORY SCHOOLS TRUST INDEPENDENT AUDITOR'S REPORT FOR THE YEAR ENDED 31 AUGUST 2022 Audftovs responslbilltlos for the audlt of the flnanclal statements Our objectives are to obtain rèasonable assurance about vthether the financial statèments as a whole are free fr¢Jm material misslalement. whether due lo fraud or 8mr, and to issue an auditorfs report Ihat indudes our opinion. Reasonable assuranrA iq x high level of assurancA9, but is not a guarantee that an audit conducted in accordance wth ISAS (UK) will always detect a malerfal mlsstatement when it exists. Misstatemenls can anse from Iraud or emr and are consid8r8d matèrial rf. individually or in tho 2ggre9ate, they could raasonably be expectad to influence the economic decisions of users taken on the basis of these financial statements. Delails of the exlent to which the audit was ¢onsKlered capable of deteding irregularities. induding fraud and non. Accordingly, the Consolidated Statement of Finanoal Activities reflects the incoming resources and resources expended of the Group and not the Trust as an individual entity. 1.2 Golng Concern Having rewe￿*d the cash pogilion of thÈ Trust tcrfJether wryth tha eXF*Ctèd ongoing demand fc places at the Schods and future projected cash flows. induding the ongoing effects of Covid- 19 and potential lockdo￿7$, the Trustees have a reasonable expectation that the Group has adequale resourceb Iu LX)iitiriuv itb aGlivitie5 for the foreseeable future and consider that ther8 were no material uncertainties over the Group's financtal wability. Accordingly, they continue to adopt the going concem basis in preparing the financial ststements. 1.3 Crltlcal accountlng Judgomènts and key sourcos of estlmatlon uncertalnty In the application of the accounting polici8s. Trustees are required to make judgements, estimates. and assumptions about tho carrying value of a55et5 and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are bas8d 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. ReviS￿S to accounling estimales are recognised in the period in Ythich the estimate is revised rf the revision affects only thai period, or in the period of the revision and future periods rf the revision affected CU￿ent and future periods. The Group's liability for the Non-Teaching Staff defined benefft pension scheme invdves a number of assumptions as disdosed in note 17. In the view of the Truslees. no other ilbbutviplivns wriG¥rwiiriy Llit> lului¥ ui ¥>liirialivwi un￿rIall)lY all￿tIll9 assets vr liabilities at the balance sheet date ar8 likdy to r8suft in a materi21 adjugtm8nt to th8ir c8rying amounts in the next finanaal year. 19 DULWICH PREPARATORY SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 1 ACCOUNTING POLICIES (continued) The following accounting policies have been applied consist@ntty in dealing with items which are considtsred material relation to the financial stat¥iii¥iiib. 1.4 Income l incom8 is induded in the c￿s011daIed statement of finanaal a¢tivities when the Group ha3 entitlement to the funds, receipt is probable and the amount can be measured with sufficient reliability. Fees consist of charges for the schoc4 year ending August, less bursarse5 arKI allowanrBs. Fees receiv6d in 2dvanc4 are deferred and rdeas8d to income in the period to vthich the fees relate. Grant income is rewnised as and ￿en entitlement arises, can be reliably quant[r￿ and the benefit is probable. 1.5 Expendlturn Expenditure is accrued as soon as a liabilty is considered probable, discounted to pr8sent value fof longer-lenn liabilities and has been induded under expense categories that aggregale all costs for alk)cation 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 Tanglbl• fixed assets Tangible fixed assets are stated at cost less depreciation. Depreciation is provlded at rates calculated to wrlte off the cosl of flxed assets, less thelr estlmate(I resloual value, over thelr expected useful lives on the followng bases. FIX￿ assgts ar8 capitalisèd rf thèy axcaèd a no trivial amount in the context of the Trust's or relevant s¢t￿l's operations being £500 in the case of the Trust and Du￿￿th Prep London and £200 in the cas8 of Dubmch Prep Cranbrook. Freehold land Freehold propety Long-tèm lèasèhold prop8rty Motor vehicles Fixtur8s and fittings Computer equipment Not depreciated Over 5 to 50 years RedLAcing b818nce over 50 years 25% reducing balance 10% straight line 2&50 /0 straight lin8 BoTrowtng O￿ts directy attributab18 to caFMtal development prolects have been capitalised. 20 DULWICH PREPARATORY SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 1 ACCOUNTING POLICIES (contlnued 1.7 Fund accountlng Unrestricted income of the Trust belongs lo the Trust's corporate reseNes, spendable at the discretion of the Tnjstees to further the Trust's objects. The unrestricted income of the Sch(xJs similarly belongs to the corporate res8rv8s of the rel8vant school and 15 spendabl8 at the discretion of its Govemors to further the school's objects. The oty'8Cts of the Trust and the Schools contain provislons lo prowde support to èach other. Where the Trustees or Governors {as relevant) do¢id9 to set aside any part of these funds to be used in futurc for some specific Pufpose, this is accounted for by transfer to the appropriate designated fund. Restricted funds may only be spent on the charitable purpose specffied by the donor. 1.8 Pen8lon costs Rel1￿ment benefits to employees of the Group are now provided through one defined benefit,, and two defined contribution schemes. The pens￿ costs charged in the Ststement of Financial Activities are determined as follows: (a) Tho Tead￿r$. Pension Schome - Thi8 Scheme is a multi-èmployer pension scheme. It is not possiNe to identify the Group's share of the uThJerfying assets and liabilities of the Teachers. Pension Scheme on a consistent and reasonable basis and therefore, as required by FRS102, the Group accounts for the scheme as ff li were a defined conthbution scheme. Tho Group's contributions, ￿lch are in accordance the re¢omm¢ndations of the Government Actuary. are charged in the period in which the saL8ries to vthich they relate are payable. Dulwich Prep Cranbrook left this scheme on 31 October 2019. (b) From 1 November 2019, Dulwich Prep Cranbrook leaching staff have become members of the Aviva Pension Trust for Independent Schools which as its name implies is operated by Aviva for a number of private schools. Employerfs pensions costs are charged in the period in which the salaries to whth they relate are payable. Ic) The Dubmch Preparatory Schools Trust Non Teachlng Slaff Group Personal Penslon Plan . This is a defined contribution group personal pension plan with Aviva. Employer's pensions costs are charged in the period in bthich the salaries to thich they relate are payable. 21 DULWICH PREPARATORY SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 1 ACCOUNTING POLICIES Icontinued) In addition the Trust has historically provided retirement benefrts to non-teaching staff through defined benefil scheme, The DulwFGh Preparatory Schools Pension Schem8. The scheme Is now closed so there are no cuffent service costs. other than adminkstration expenses vthich ar8 bome directly by the Schools. The expected retum on the scheme assets less the schem8 interest rAY6ts are credrted w5thin other interest. The scheme actuarial gains and l¢)sses are rerx)gnised immediately as other recognised gains and losses. The defin8d ben8ftt scheme assets aré measured at fair value at thg balance sheet data. Schema liabilitses are measured on an actuarial basis at the balance sheet date using the projected unit method and discounted at a rate equtvalent to the current rate of retum on a h￿h quality corporate bond of equlvalent tenn to the scheme Ilabllllies. The resulting defined 08nefit asset Of liability is presented separately aftor other not as$ot$ on tho face of the balance sheet. 1.9 OperatSng leases Rentsl income and expendIiu￿ under operating leases are accounted for on a stralght4ine basis ov8r the lease tem. even rf the payments are not made on such a basts. 1.10 FlnanGlal InstrumerrtS Basir financial instruments are initially rec))gnised at transaction value and subsequenlly measured at amortised cost. Financial assets held at amortised cost comprise cash at bank and in hand. together vith trade and other debtors. A specific provision is made for debts for Ythich recoverability is in doubt. Cash at bank and in hai)d is defined as all cash l)elrJ iii inslant access bank accounts and used as working capttal. Financial liabilities hdd at amortised cost comprise all creditors except for fees received in advance, social securty and other tsxes and provisions. Administration and simllar fees paid for bomwings are treated as interest and amortised over the lrfe of the loans 1.11 Taxatlon The Trust is a registered charity No.312715 and as such is not liable to United Kingdom income tax or corporation tax on charitsbl8 activities. DULWICH PREPARATORY SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 2 FEES RECEIVABLE 2022 2021 Fees receivable con81st of: Sch￿1 fees Less: total awards and concessions 21.819,714 980.651 20.839,063 20,018,289 1,044,938 18,973,351 Induded ￿thIn ayrtrds and conce55ions are means-tested bursaries totalling £448,518 7*hiL w8r8 paid to 40 pupils (2021.. £443,214 to 38 pupils)_ 3 OTHER EDUCATIONAL INCOME 2022 2021 Entrance and registration f88S Courses and su￿letting$ AVP sports activities income 44,850 599.339 106,904 751,093 47,260 208,655 108.610 364,525 4 ANCILLARY AND OTHER INCOME 2022 2021 School shop, Schcrf)I trips and Other income Profit on sale ot fixed assets 227,596 446,672 674,268 78,523 1,328.697 1,407.220 5 OTHER TRADING ACTIVITIES 2022 2021 Rents reGetvable 95.677 113,290 23 DuL￿CH PREPARATORY SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 6 ANALYSIS OF EXPENDITURE Staff costs Depreclation Other Costs (Noto 9 Total Total 2021 (Nota 7) 2022 Ralslng funds Financing costs 8.000 122,528 130,528 472,556 Total costs of ralslng funds 8,000 122,528 130,528 472,556 Charitable expenditure Teaching 10,429,649 Welfare 322,360 Premises 669,383 Support costs 2.014,799 1,427,359 1.324,020 1.899,383 1.115,119 11.857,008 11,647.136 1,646,380 1,432,065 3.923,101 3,992,963 3.129,918 2,909.512 1,354,335 Total charltabl• expendlture 13,436,191 1,354,335 5,765,881 20,556.407 19,981.676 Total expendlture 13,444,191 1,354,335 5,888,409 20,686.935 20,454,232 Financing costs indude a past service cost of £355,CNJO in respe￿ of pension equalisation in 2021 which is not expected to recur, as detailed in note 15. Support costs InGludg the followln9 rolatlng to govomance 2022 2021 Trustee costs Legal and consultsncy fees Remuneration paid to auditor for audit s8rvic8S 7,937 11,790 33,000 6.961 11.790 33,000 7 STAFF COSTS 2022 2021 The aggregate payToII costs for the year were 85 follows: Wag8s and salaries s￿￿81 security costs Pension costs and other benefts 10,400.972 10.688,740 1,061,350 1.041,737 1,981,869 2.1b4,437 13,444,191 13,894.914 Aggr8gat8 8mploye&benefits of key management Personnel amounted to £578,879 (2021..£520.416) induding pension contributions of £67,58812021: £66,383). 24 DULWICH PREPARATORY SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 7 STAFF COSTS Icontlnuad) Number of higher paid employees in bands of: £60,001 to £70,000 £70,001 to £80.000 £80,001 to £90,000 £100.001 to £110,Oc￿l £120,001 to £130.000 £130,001 to £140.000 £150,001 to £160.000 2022 2021 The number with retirement benefit5 a(Lruing - in Defined Contribution schomos was of which the contributions amounted to - in Defined Benefit schemes was 17 291,696 54,431 16 Dulwich Prep London IMthdrev*S from the Teachers, Penslon Scheme on 31 August 2021. The School joined APTIS. which is a defined contribution scheme on 1 Selpember 2021 and at the same time staff moved to a salary sacrifice scheme thus employer contributions increased significantly to reflect this. The average number of the Group's employees during the year. calculated on headcount, was.. 2022 188 37 92 317 2021 191 40 93 324 Teaching Domestic and eststes Administrative During the year there were redundancy or teminatlon payments which amounted to £32,432 {2021". £64,903) 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 (2021.. £nil) and no other amounts {2021'. nil) paid to Tnjslees. During the year no Trustee (2021.. 0) received r( imbursements of expenses for travel and subsistence (2021.. £0). During the year £30,000 (2021: £30.CQO> v￿S paid to M J Tiplady for consultancy related to the Trust's property portfolio and £47212021: £297) for expenses for travel. The payments are pemiitted under the Trust's goveming document. In the year al Dulwich Pr8p London one Gov8mor was f8-imburs•d for travel expenses £52 (2021: 1 Govemor received £78). In the year al DuKvich Prep Cranbrook ther8 was one Govemor expense for £100 in relation to training (2021= £nill. The Charity re￿iVed aggregate donations from Govemors in 2022 totalling £100 (2021 £nil). These V￿re recerved without conditions or restrictions. 25 DULWICH PREPARATORY SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 9 TANGIBLE FIXED ASSETS Group Leasehol Land and Freeh(4d Buildings ptoperty Inytuvetnents Fumiture Fixiures and EqUIF￿nt Equlpmont Vehiaes Total At 1 Seplember 2021 Addtti'ons rAsposals At 31 August 2022 25.267,096 40,160 (243.4411 25,063,815 38,247,339 581,932 {103.4751 38.725.796 2.135.463 1.186.329 139.100 294.035 {13.5981 1.466,766 126.513 66.962.740 40.853 1,096,080 145.5671 14Q6.0811 121.799 67,652,739 2.274.563 Dèpr•clatlon At 1 September 2021 Charged in year Disp05al8 At 31 August 2022 9,￿0.740 551,243 (78.8581 9,533.125 11,539.712 573.540 142.601) 12.070.651 1.657.339 79,684 956,451 134.352 173.YJ81 1.077.205 113.107 23.327.349 15,517 1.354,336 {45,5671 {180,624) 83,057 24.SOI.061 1.737.023 N•t book valu At 31 Awjusl 2021 At 31 Augusi 202Z 16,2fffj.356 15.530.6 26.707.627 2fj,655,145 478,124 537.540 229,878 389,561 13.4C6 43.635.391 38.742 43,151,678 Tw•t Frnehold property Leasehdd Land and Total Co Al 1 September 2021 Iditions 25,248,03t3 37.84U.W2 257,547 1103,475) 37.994,075 53,OB8,038 257,547 1346,9161 62,998,669 Disposals At 31 August 2022 {243,441} 25.004.595 Depreclatlon At 1 September 2021 Charged in year DisFosals At 31 August 2022 11.fj?n 6?6 563.821 142.5601 12.051.888 20,589.920 1,113,778 121.418 21,582.281 549,957 178,8581 9.530.393 Not book valu At 31 August 2021 At 31 August 2022 16,188,742 15.474,201 26,309.376 25,942,187 42,498.118 41,416,388 At 31 August 2022 tho GrrAJp had cApit81 eA)mmitm8nts of £nil {2021.' £nil). DuL￿CH PREPARATORY SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 10 DEBTORS Group 2022 Gwoup 2021 Trust 2022 Trust 2021 Fee debtors Sundry debtors Propaymonts 108,152 175,089 367,882 651,123 110,929 198,122 291,661 600,712 17,527 33,642 51,169 38,311 30.417 68,728 11 CREDITORS: amount8 falllng due withln one year Group 2022 Group 2021 Trust 2022 Twsi 2021 Trad& creditors Social security and oth8r taxation Fees in advance Other creditors Fee deposits Amounts owcd to subsidiarlos Bank loan Accruals 720,119 273.626 1.792.911 106,264 1,598.455 546,100 267,262 1.790,497 254.984 1.583,354 22,809 102,745 1,773 4,385 3,879,664 695,275 136,330 4.735,851 3.747,921 694.760 183,802 4,733,613 695,275 226,735 5,413,385 694,760 420.049 5,557,006 12 CREDITORS: amounts falllng due after more than one year Group 2022 Group 2021 Trust 2022 Trust 2021 Loans due wthin Iwo to five years Loans due in more than five years Prowsion for dilapioations Fees in advance 2,195.540 2.822,579 52.054 85,266 18,660 2.978,559 2,195.540 2,822,579 52,054 85,260 85,266 85.266 2.280.806 2,280,806 2 959.899 The Trusfs loan balance comprises drawings under two fa¢iliti8s from Natwest Bank which Originally totalled £5 million. The first is e fixed rate loen ot 3. 14% of which £3 million was drawn in June 2018. It vrds repayabl8 in equal monthly instalments of £45.862 originally Commencing in July 2019. The Twst was granted a 12 month repayment hdiday for both larjlities tollowng the pandemic In May 2020 as a Consequen￿ the loan paymenis recommenced, at the same rate, in April 2021 and will cease in June 2026; the amount required to repay the loan on 31 August 2022 was £1,971,026 (2021: £2,463.957). 27 DULWICH PREPARATORY SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 13 CREDITORS: amounts falllng due after more than one year (contd) The second is a variable rat8 loan at 1.25°h above base rate of which £1 mllllon was drawn in November 2018 and a further £300,000 was dravm in November 2019. It was repayable by monthly instalmenls of £19,350, 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 Ihe loan on 31 August 2022 byas £932,592 (2021: £1,145,401). The monthly Instalments vary with ¢hang8 in interest rates. No further dra￿IngS were pemiitted after November 2019 and there is no penalty for early repayment of either facillty. The loans are se¢ured by a charge over certain of the Trusvs residential freehdd assets which have a net I)￿k value of £2.25million and a market value of £6.15 million. 13 FEES IN ADVANCE Group 2022 Gro￿) 2021 Fees in advance Viill bè applied as fdk)ws.' Wthin one to years Wthin one year 18,660 1.790,497 1.809,157 1,792,911 1,792,911 Movements in Fees in advance Opening Fees in advance Amount released to income during the year Amount deferred during the year 1,809,157 1.730.911 (1.790,497) {1.697,146) 1,774,251 1,775,392 1,792,911 1.809.157 14 OPERATING LEASE INCOME AND COMMITMENTS At 31 August 2022 the total of future minimum operating leasè income receivable under non- cancellable operating18as8s amounted to: Group 2022 Group 2021 Trust 2022 Trust 2021 Land and buildings within 1 year Land and buiklings 2 and 5 years Land and buildings after more than 5 years 2,005,194 1,526,350 9,457,124 6,065,400 125,155.740 48,187,850 28 DULWICH PREPARATORY SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 14 OPERATING LEASE INCOME AND COMMITMENTS {CONTINUED) At 31 August 2022 the total of future minimum operating lease commitments payable under non- nc811able operating leases amounted to.. Group 2022 Trust 2022 Trust 2021 2021 Land and bulklings S￿1h1n 1 year Land and buildings 2 and 5 yE8r8 Land and buiklings after moro than 5 years 441,002 402,300 1,749,008 1.569,200 23.544108 2.101.800 441,002 1.749.008 23,544.108 402,3CKJ 1.569.2fYJ 2,101,81XI Other ￿thin 1 year Oiher betsveen 2 and 5 years 136,442 17.088 153,727 172,832 The charge in the year was £583.936 (2021: £785,446) for the Group and £436,002 (2021: £458,888) for the Trust. The Trust signed a lease extension in September 2021 for the stte at Dulwich Prep London. As result of this the minimum operating lease commitments payable increased to £25,734.118 for the lrfe of the lease in August 2022. 15 SUMMARY OF MOVEMENTS ON MAIOR FUNDS At1 September 2021 Incomirrfj resources Resources expended Gainsl (Lossl At 31 AugU•t 2022 Transfer GrDUP Unreslricted funds 38,711,600 22,360,195 120,684,435) 401,CM)O 2,587 40,790.947 Restricted nds 16,284 11,660 (2,5LKI) (2,587) Tothl funds 38,727.884 22.371.855 20.686.935 401.000 40.813.81M Twsl Unrestricted funds 35,242.748 3,673,579 {1,845,127) 37,0712fy) Restricted funds 13.362 13.362 Total funts 35,256.110 3.673.579 {1.845.127 37,084.562 The comparative 2021 figU￿S can be found in Not8 21. A transfer of £2.58712021 £1401 has been made during the year lo r8llect restricted in¢om8 spenl from the Contained (knk Management Fund (2021 Musi¢al Instrumenlsl. 29 DULWICH PREPARATORY SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUEDI FOR THE YEAR ENDED 31 AUGUST 2022 16 SUMMARY OF NEf ASSEfs BY FUNDS Unrestricted Funds Restricted Funds Total Funds Group Tangible Assets Net Current (Liabilities) l Assets Long Term Creditors induding Pension Lh9bility 43.151,678 179,924) (2,280,806) 43,151,678 157,067) (2,280,806) 22.857 40.790.948 22,857 40,813,805 Trust Tangible Assets Net Current (Liabilities) l Assets Long Terrn Credito 41,416,418 12,064.412> 2.280.806 37,071,200 The comparative 2020 f￿￿reS can be found in Nole 21. 41,416.418 (2.051,050 2,280,806 37,084,562 13,362 13.362 17 PENSION SCHEMES Current retirement benefits to employees of the Group are provided through two defined contribution schemes, vthich are funded by the Group and employees, contributions. There is also a dosed defined benefit scheme that operated for non-leathin9 stsff. Teachers. Pension Scheme Dulwich Prep London left the Teachers. Pension Scheme ('the TPS") for their teaching stsff with effect from 1 September 2021. The pension charge for 2021 for the year induding contributions payable to the TPS was £1,084,953 and at the year-end £0 was accrued in respect of contributs'ons to this scheme. Defined contribution schemes l) Awva Pension Trust for Independent Schools (APTIS) The teaching staff for the schools were part of APTIS during the year. Salary sacrifice scheme were operational at both schools. 21 Aviva The non-teaching staff for the sch(x)Is were part of an Avlva defined contribution scheme. The pension cost charge in th8 year in respect of the defined contribution schemes was £1,730,42012021= £600,695). DuL￿CH PREPARATORY SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS (GONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 17 PENSION SCHEMES (CONTINUED) Non-teachi d8fin8d b8nefrt stheme The Trust operated this Sch8me (the ou1￿.ch Preparatory Schools Trust Non-Teaching Staff Pension Scheme}, which vrds closed on 31 De￿Mber, both in respect of new members and accrual for existing members. On 1st September 2017 the Trust transferred the obligations to contribLrte to the Scheme to each of the Sthry)Is. 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 latsst aciuarial valuation a revised sd￿du￿ of Contribuiions was agr88d b8lween the Trust. the Schools and th8 Sch8m8 Trust8es with thè aim of eliminating the deficit over a period of 5 years from 1 January 2021. Thè schools have recognis8d a past service cost In respect of equalisation estimated at £355,orxi. a) The amounts recognlsed In the balance sheet are as follows Group 2022 Group 2021 Present value of funded obllgations Fair value of scheme assets Resttictsons on recoverable surplus Net (Liability) (2,705,000) 13,120,005) 2,910.000 2.577,0(M) 205,000 543,005 b) Changes In thè prosent value of the defined benefft obligatlon Group 2022 Group 2021 Opening defined benefit obligation Interest cost Past service cost Actuarial losses Benefits paid Closing defined benefit obligation 3,120,000 $3,000 2.881,000 46,000 355,005 (136,000) 26.000 3,120,005 (445.000) 23.000 2,705,000 c) Changos In the falr valuo of tho Schemo assèts Group 2022 Group 2021 Opening fair value of s¢h8me assets Interest income Retum in excess of interest inrJ)me Contributions by employer Benefrts paid osing fair valu8 of scheme assets 2,577.000 45.000 161,000 150,000 23,000 2,910,000 2,352,OC 39,OCK) 65.OC(I 147,000 26,000 2.577,000 31 DULWICH PREPARATORY SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENT5 ICONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 17 PENSION SCHEMES {CONTINUED) d) The amounts included wlthln the Statement of Financial Activitles Group 2022 Group 2021 Past service cost Interest on otsiigaiion Interest income 355.005 46.000 {39,OCKJ) 53,000 145.000> Totsl ami)unt d￿rged to the Statement of Finanaal Activities 8,000 362.005 Restriction on recoverable surplus Net actuarial gain￿(loSSeS) recognised in the year Pension scheme actuarial gainl(loss) 1205,000) 606,000 401,000 201,000 201,000 The Group expects to contribut& £18CI.QOO in 2022122 {2()21.. f.fifl,748). The existing obligations have been assumed by the Schools in proportlon to their ongoing conlributions as calculated by the Scheme Actuary follo￿n9 the Iriennial actuarial valuation as at 1 January 2021. o) Prlnclpal actuarlal assumptlons at th• balanco sheet date 2022 2021 Finanoal Assumptions Otscount rate 4.2% 3.7% 4.0% 3.5% 1.7% 3.4% 3.7% 2.6% RPI inflation assumption Rate of increase of pensions in payment Rate of increase of pensions in deferynent Assumed lrfe expectancy in years at age 65: Non Pensioners Females 26.2 26.2 Males 23.8 23.7 Pensioners Females Males 24.4 22.0 22.1 32 DULWICH PREPARATORY SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 18 TRANSACTIONS IMTH SUBSIDIARY ENTITIES The Trust received donated stsff time of employees of Dulwich Prep London totalling £18,164 (2021: £21,145) recognised in the TrLtst accounts as a gift in kind. DU￿1￿ch Prep London donated £1,100.000 to Dulwich Preparatory Schools Trust. Dulwich Preparatory Schools Trust donated £50,IX)O to Dulwtch Prep London. The Twst also received rental income of £1,765,989 (2021.. £1,164,733) from Dulwich Prep London and £403,500 (2021: £387,375> from Dulwich Prep Cranbrook. Cash resources for th8 Group are managed centrally by the Trust and as a consequence at 31 August 2022 £3,477,053 {2021: £3.408,522) was due to DU1v￿Ch Prep London and £402.612 (2021: £402,612) was due to DuNvich Prep Cranbrook. 33 DULWICH PREPARATORY SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 19 SUBSIDIARY ENTMES Dulwl¢h Pre London Registered office Company number Charity number 42 Alleyn Park, Dulbvich, London SE217AA 10814894 1174356 Abbr•vlat•d SOFA 2022 2021 Income Exp8ndtture Pension schem8 actuarial gainsl(Ioss8sI Net movement in funds for the year Fund5 brought forward at 1 September 2021 Funds carrfecl forward at 31 Augusi 2022 15,963,001 (16,091.697) 91.800 {36,896) 3,294,719 3,257,823 14,358,019 (13,864,041) 46.Q(XJ 539,978 2.754.741 3,294,719 Abbrnvlated Balance Shaet 2022 2021 Fixe(l assets Cash at bank Other assets Creditors: Amounts falling due within one year Creditors: Amounts falling due after more than one year Pension scheme liability 1,521,744 1,605,469 3,847,984 (3,717.374) 976,816 2.344,870 3,722,674 {3,606,681) (18.660) {124,3￿) Net assets 3,257,823 3,294,719 Total Funds 3.257.823 3.294,719 DULWICH PREPARATORY SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021 19 SUBSIDIARY ENTITIES Icontlnuod) Dulwlch Pre Cranbrook Registered office Company number Charity number Abbr viated SOFA Coursehom, Cranbrook, Kent. TN17 3NP 10815140 1174358 2022 2021 Income Expendrture Pension scheme actuarial gainsl(losses) Net movement in funds for the year Funds brought forward at 1 September 2021 Funds carried forward at 31 August 2022 5,963,860 (5,978,758) 309,205 294,307 177,056 471,363 5,535.584 (6,118,910) 155,000 (428.3261 605,382 177,056 Abbrevlated Balance Shaot 2022 2021 Flxed assets Cash at bank Other assets Creditors: Amounts falling due within one year Creditors.. Amounts falling due after more than one year PenS￿n scheme liabilty 213,501 466,094 632,719 (840,951) 160,453 578.241 842,708 (985,641) (418,705) Net ass8ts 471.363 177,056 Total Funds 177,056 35 DULWICH PREPARATORY SCHOOLS TRUST CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2022 (Incorporatlng an income and expenditure account) 20 PRIOR YEAR COMPARATIVE NOTE (A) 2021 STATEMENT OF FINANCIAL ACTIVITIES Notss Unrestrlcted Funds 2021 Restrlctsd Fund$ 2021 Totsl 2021 Incom¢ from: Charltable actlvltle8: School fees receivable Other 8ducational income Ancillary income Oth•r tradlng aeilvltl•s Non-ancillary trading income Investments Bank and other interest Voluntsry sourcos Donations arid legaGses Job retentlon scherm grant 18.973,351 364,525 1,407,220 18,973,351 364,525 1.407,220 113,290 113,290 304 40,727 338,449 43,311 338,449 Totsl Income 21.237,866 21,240,450 Expèndlturo on: Ralslng funds Financing costs 472,556 472,556 Total Costs of ralslng funds (472,556) (472.556) Charitabl¢ actlvltle8 Education and grant making Totsl expendlture 19,981,676 20.454,232 19,981,67 20,454.232 Net income 783.634 786.218 Transfer b8tvMen funds 140 (140) Pension scheme actuarial gains 19 201,000 201,000 Net movement in funds for the year Fund balanc8s brought fopKard at 1 September 2020 Fund balancos carrl8d forward at 31 August 2021 984,774 987,218 37,726,826 13,840 37.740,666 38,711,600 36 16.284 38.727,884 DULWICH PREPARATORY SCHOOLS TRUST NOTE8 TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2022 20 PRIOR YEAR COMPARATIVE NOTES (CONTINUED) (B) 2021 SUMMARY OF MOVEMENTS ON PWOR FUNDS Sopt8mb&r Incomlng resources Resourcos expended Galnsl Loss At31 August 2021 2020 Trnn•f•r Group Unrestrlcted funds General serve 37.726,826 21,237.866 (20,454.2321 201,000 140 38,711.600 Restricted Total fijnds 13.840 2.584 37,740,666 21,240,450 140 16284 38,727,884 20,454,232 201,01)0 Trust Unrestricted 34.367,299 Restricted funds Total funds 2,922.484 (2.047,035) 35,242,748 13.362 13,362 34,380,661 2,922,484 2,047,035 35.256,110 (C) 2021 SUMMARY OF NE[ ASSEfs BY FUNDS Unrestricted Restricted Funds Funds Totsl Fund• Group Tangible Assets Net Current (Liabililies) l Assets Long Temi Creditors including Pension Liability 43,635,391 (1,402,227) (3,521.5641 43.635.391 (1.385,943) (3,521.5fA) 16.284 38.711.600 16,284 38,727,884 Trust Tangible Assets Net Current (Liabilrties) l Assets Long Term Creditors 42,798,118 {4,295,4711 2,959,899 35,542,748 42,798,118 (4,282,109 2,959,899 35.556,110 13,362 13,362 37