Company No. 579923 Registered in England Charlcy No. 312715 DULWICH PREPARATORY SCHOOLS TRUST ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 DULWICH PREPARATORY SCHOOLS TRUST ANNUAL REPORT OF THE TRUSTEES YEAR ENDED 31 AUGUST 2023 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 2023. The Trustees confimi 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 Recommendejj Prattice (SORPI "Accounting and Reporting by Charltles. {Charities SORP FRSI 02). Status and administration The Trust Is a company Ilmited by guarantee (Company NtsrA)er 579923) and Is registered wlth the Chariry Commission under Charity Number 312715. Trustees. responslbllltlej The Trustees (who are also directors of Dulwich Preparatory Schools Trutt for the purposes of company law) are responsible for preparfng tht Trustees, report lincludlng the strategit report) and the financial statement$ in accordance with applicable law and United Kingdom Accoun¢ing Srandarés (United Kingdom Generally Accepted Accountlng Practice). Company law requires the Trustees to prepare fmanclal sta¢ement5 for each financial year. Under company law the Trustees mus¢ no¢ approve the financial statemen¢s unless they are satisfied that they gSve a erue and falr view of the State of affairs of the Trust and of the Sncomlng resources and application of resources, includlng the income and expenditure, of the Trust for that period. In preparing these financial statements, the Trustees are requlred to: select Suitable accounting policies and then apply them conslstently: observe the methods and prlnciples In the Charities SORP., make judgments arKI accounting estimates tha¢ are reasonable and pNdent; 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 unle55 It is InapPr￿riate to presume ¢hat the Trust will continue In operation. The Trustees are responsible for keeping adequate accounting records that are sufficient to $how and explain the Trust'5 transactbns and di5c105e with reasonable iccuracy at any time the financial positbn of the Trust and enable them to ensure that the financial Statem￿t$ c￿PIY wirh the Companles Act 2fxi6. They are also responsible for safeguarding the assets of the Trust and hence for taking reasonable Steps for the preventh)n and detection of frnud and other irregularitie5. Each of the persons vh)o are Trustees at the tlme when thi5 Tru5tees' report is approved has confirmed that.. 50 far as each Trustee Is aware, there is no relevant aud￿ informarlon of whlch the Trust's auditor is unayrdre. 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 thac the Trust's audltor is aware of that Information. DULWICH PREPARATORY SCHOOLS TRUST ANNUAL REPORT OF THE TRUSTEES YEAR ENDED 31 AUGUST 2023 STRUCTURE. GOVERNANCE AND MANAGEMENT The Trust is the parent charity Of two independent school charities. The Du￿1Ch School Cranbrook IpreYiou51y known a5 Dulwith Prep Cranbrook) and Dulwith Prep London ('the Schools'}- together "the Group". The Tru5r sUPPQrt5 ¢he provis*)n of education by the two Schools and the tsyo Schools lease their facilities from the Trust. Members of the Trust comprlse the Trustees of the Dulwich Preparntory Schools Trus¢ together wth all the Governors of the Schools. The Trust's Articles refiect the Companies Act 2006 and the char￿leS Act 2011. Tll￿t Board The Trustees of the Trust are charity Trustee5 under charty law and Directors of the Tnjst for the purposes of company law. The members of the Trust Board who served In offlce as Trustees during the year and subsequently are detailed below.. D H Nelson Independent Chalrman M Stj Ashley Nomlnated by the Governlng Body of The Dulwlch School Crdnbrook. retired from 31 51 October 2022 S J Balley Independent Trustee T M Durie Nominated by the Governing Body of The Dulwlch School Crnnbrook. from 1 gl November 2022 E K Kelleher Nomlnated by the Govemlng Body of Dulwlch Prep London S L Rynehar¢ Nominated by the GoYÈrnlng Body of The Dulwlth School Crnnbrook: from l Jt November 2022 JDHSteel Nominated by the Governlng Body of Dulwlch Prep London M J Tiplady Independent Trustee Offlcers N B Holllday Secretary ¢0 the Tr￿tee5 Professlonal Advlsers Bankers.. Natwest Bank plc. 120-122 Fenthurch Street. London EC3M 5BA Solicitors: Farrer & Co LLP, 66 Lincoln'5 Inn Field$, London WC2A 3LH Audltor: Crowe U.K. LLP, 55 Ludgate Hill. London EC4M 7JW DULWICH PREPARATORY SCHOOLS TRUST ANNUAL REPORT OF THE TRUSTEES YEAR ENDED 31 AUGUST 2023 Management Structure The Board me&s a minimum of three times per year, normally once per academic term. There are three Independent Trustees, including the Chalrn)an, and each of the Schools nomlnate5 two of it5 Governors (norn)ally including the Sthool's Chalman) as Trustees. The Bcard has a Flnance Commlitee which meers a week or two prior to Tru5r Board merfln85. and at other time5 when necessary, to discuss financial marrer5 on which it advises the Board. The Trust considers the perfomance of each Sthool, their future plan5. budgets and operation, together wKh applications for capltal Investment. Trustee Recrultment & Trnlnlng The Board is self-appointing. with new TnJ5tee5 Kdentrfied and appoin¢ed follt)win8 agreement from all current Trustees. Trustees serve for an initial terni of four years, but may offer th￿SelVeS for re-election for a second term of four years and then a final term of two years. makirb8 ten years in total, except In excepclonal circumsrances. New members of the Board are elected on the basis of the candidates, profe$5i0nal qualities, experience, personal competence and the specific needs of the Trust. New Trustees are inducted Into the workings of the charitable company via a programme organSsed by rhe Secretary, The Secretary will also no¢lfy members of the Board of relevant external Trustee eraining and informatlon courses and seminars deslgned to keep them informed and updated on currenr Issues in the sector and regulatory requirements. Charlty Code of Governance The Board takes l¢s governance re5pon5bilities 5eriou51y and the Group aims to have a governance framework that 15 frt lor puFpose, compliant and efficient. The Group has establiqhed a solid foundation In governance Sn which all of its Trustees are clear about thelr roles and legal responsibilities, are commkted to supporting the TNst in delivering its objects most effectively for the benefit of if 5 benefici2ries and contribu¢ing to the contlnued improvement of the Schools. The Group meets the key outcomes srf ou¢ in the Seven areas of the Charity Govemance Code. The structure of the Group and the relationship beNeen the Trust and the two Sthools are designed in such a way a5 to ensure that recommended prnctice is observed and, vthere specific a$pecf$ are delegated to the Sch¢oL%. these aspects are regularly monitored. Employment policy The Trust and each of the Schools Is an equal oppornJnitie$ empbyer. Full and fair ¢onsideratDn Is given to job applications from disabled pers¢Jn5 and due consideration 15 given to their training and employment needs. Consulution with employees, or their representative5, has continu&J 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. Employee5 are made aware of the financial and economic performance of the relevani Sthool. DULWICH PREPARATORY SCHOOLS TRUST ANNUAL REPORT OF THE TRUSTEES YEAR ENDED 31 AUGUST 2023 Communicacion with empk)yees continue5 chrouth normal management channels in a variety of form5. The Trust's only empbyee is the Secretary who is part time. STRATEGIC REPORT The remainder of the report of the Trustees also constitutes the strategic report for the purposes of the Companies Act 2006. Prlnclpal a¢tlvlty and objects of the charltable company The printipal acclvlty of the Trust is the ad￿nCern￿( of education in the Lknlted Kingdom and elsewhere, currently through the support provided to the two Schools. The Board Is mlndful of the long-standing need to provide public benefrc and strive5 to do so through the support of developrnent in education generally, through bursarles (mainly provided by the two Schools), through working with other educational bodle5 and the promoiion of best practlce. Alm The Trustees. aim is that pupS1s at the Schools should benefrtfrom the pmvision of first classfaclllties to enable them to fuMI thelr potentlal on all fronts - academia artls¢l¢. dramatlc, musical, sportin Social and moral. Prlmary oblectlv• The Trust Is a charltable trust which promotes the advancement of education In a br￿d context and In partScular at ies two Schools in London and Kent. Strategles to achleve the prlmary oblectlve The Trus¢ seeks to athieye its primary objectlve through the Implementath)n of the following Strategies.. By providing an excellent education at The Dulwich School Cranbr¢)ok and Du￿1Ch Prep London; Through the provlslorb of bursarSes and other financlal support to enable children whose parents would not otherwise be able to afford the fees to benefit from an education at the Schc4)1s.' By ralslng fund$ in support of educacion and organising, or making grants tovnrds. lectures. semSnars. broadcasts or courses of instruccion; By considerlng ways in which technology can be can be used to enhance teaching and learning- Through the provision of ¢lassrwms and building5 generally in connection with education at Dulwich Prep London and The Du￿1¢h Sthool Cranbrook and elsewhere.. DULWICH PREPARATORY SCHOOLS TRUST ANNUAL REPORT OF THE TRUSTEES YEAR ENDED 31 AUGUST 2023 Through the provision of playing fields, games courts, recreational grounds and pavilions, swimming poo15 and other facilities in connection with sports, games and recreational activities of all kind5 at Dulwich Prep London and The Dulwich School Cranbrook and elsewhere., 8y setting rents at 2 level to ensure the financial viability of the S¢h¢)ols and at a level that is consistent with thjture capital investment to provide a first clas5 education to boys and girls at the Schools; Through the maintenance of a clear and effective man4thient stllJCtrJre and the necessary 5UPPOrt framework to Meet the need5 of the Schools., By actlng a5 banker to the Schoo15 and by lendlng money to faciliore the cash flow of each School. The Trust COns￿er$ bids for capital expendicure from the Schools w enhance the Schools, facilities. In May 2023 Dulwich Prep London announcel its plan to extend to age 16 after a 5trate8lc review of Its nurket. Thls wa5 formally approved by The Departsnent for Education in January 2024. Th13 Is intended to relieve the pressure on boys raking exams to move schools at I l + and 13+ as well as enhancln8 the educational offerln8 of the School. In order to support this move planning consent has been sought to devebp and enhance the existing facilities. Re4levelopment of the reception area has now completed. Further projects have srarted on the Pre-Prep and Block 40 and the Betws Buildlng wlll commence In Summer 2024. These projec¢$ are being supported by the Trust. On l ir June 2023 The Du￿1Ch School Cranbr¢)ok recelved approval from the Departmenl for Education to extend its age range to include pupils aged 2 to 16. Thls approval enabled the School tc expand from Isr Sepcember 2023 Into a new senior section for Years 9 to I l. In additlon. Companies House gave approval on 30th ALsgu5t 2023 to change the School's name from Dulwich Prep Cranbrook to The Dulwich School Crdnbr¢)ok. The Trust provided £1.8 million to develop facilities for the new senlor school. Publlc benellt The Trust remalns Committed co the aim of providing publlc benefit in accordance with its founding principle5. Char￿Y legislation Includes a requlrement to deM￿strate public benefit for any charitable purpose where It had hitherto been presumed in the absence of evidence to the contrdry. This calls In turn for cofflmen5urate disclosure of our public benefrt aim5. The awarding of bur5arle5 for the needy is a measurable means of providing public benefit. The Board takes the view that bursaries awarded to those who would not othenNise be able to afford the fees are important, but not to the exclusion of the muth wider benefit that the Trust provides within the communiry. The Tru5t'5 public benefit commitment is currently delivered primarily thr¢)ugh che two Schools, each of which has a bursary progrdmme. During the year the Trust's Schoo15 provided mean5-¢ested bursary support totalling £573k to 44 pupi15 (2022.- £449k to 40 pupi151 of which 25 were for 70% or more of full fees (2022: 18). In addition, there was 5UPPOrt for local charities and educational bodies thrt)ugh fund-raising activides. outreach progrnmmes and the loan of facilitie5. Both the Trus¢'$ Schools a¢tiYely promote child mental heakh av￿renesS Wlth Dulwich Prep London employing a dedicared counsellor while The Dulwich School Cranbrook retains Place2Be. A number of state schools both in Kent and London benefited fram the Trust's Schools in a variety of ways from the use of facilities to support from staff. DULWICH PREPARATORY SCHOOLS TRUST ANNUAL REPORT OF THE TRUSTEES YEAR ENDED 31 AUGUST 2023 The Trust does not engage wlth any external third party fundralsers. There haye been no complaint5 in the period regarding inapprcpriate or intnjsive contsct In relatlon to fundraising activities. Streamlined Energy and Carbon Reportlng (SECR) The Trustees have considered the requirements of The Companies (Director5' Report) and Limited Liabilities Partnerships (Energy and Carbon Report) RegulatKJn5 2018. The two Schools each meet two of the criteria for non-d15c105ure and therefore are not required to produce a reporL As a result. slnce che Trust, as the par￿t entity, does not produce any emlssions, the Trustees have concluded that the Group doe5 not need to submit a return. Section 172{1) Report Incorporatlng Statsments of Employee and Stakeholder engagement The Trustees of the Trust, as DSrectors of the Company, act In the vrdy they Conslder, In good faith, would be most Ilkely to promote the success of the Group for the benef* of its men**ers as a whole and in doing so have reKard to.. a) The likely consequence5 of any decision in the long run: bl The Interescs of the Group's employees: c) The need to foster the Group's business relarlon5hips; d> The impact of the Group's ¢peration5 on the community and the environment; e) The desirabillty of the Group maintalnlng a reputatlon for high standard5 of business conduc¢ f) The need to act falrly. The Trust achieves the success of its wider charitable purposes through the actlYStles undertak by It5 Schoo15, which are regularly monltored and assessed. This incorporates the deslre to meet the requirements of all Stakehoklers. whether puplls and the wlder communlty, staff. donots, fee payer5 and Suppliers. The Trustees consider (hat they have prom¢xed the Trust's charitable purpose, a5 set out In alms and objettiYe5 on page 4, in the foll¢￿VIng ways: a) The Ilkely consequences of any declslon in the Ion8 run.. The Trustees have considered the long-terni sustalnability of the Sthts)Is' operation5. as Set out in the Golng Contern sectlon of the Financial Review on page 8. - 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 Schoo15 through its Finance Committee and through reports from the Sthools, representatives on the Trust Board. The Finance Committee reviews fhe Schools, financial plan5 on a ternily basis by monitoring income and expenditure againsl forecast5 Wlthin the context of the annual budgecs and the rolling 5 year financial plan5. Capital expenditure plans and cash flow requirements are also closely reviewed, partycu12rly in the light of the Trust's borrowing commitments and repayment requirements. Risk management is incorporated into all of the Group'5 operations and robust risk management procedures are well established. The mosr 5i8nificant risks are discussed at each relevant Trust Board meeting. Further details are conta￿ed on page$ 8 & 9. The Trustees revlew and endorse all policies to ensure consistent long term regulatory compliance. DULWICH PREPARATORY SCHOOLS TRUST ANNUAL REPORT OF THE TRUSTEES YEAR ENDED 31 AUGUST 2023 b) The interests of the Group's employees-. - Authori¢ative and frequent communicatlon wlth staff at the two Schools has been Conduct￿ by regular staff team meetings and routine weekly written communications to sraff and parents. Staff have been kept infornied about staffing. financAI and strategic issues affecting them and the Schools. Full details of the emplo)Thent policy are contalned on page 3. - The Trustees receive regular reports on staff matters through the Schools, termly reports. - All senior management are involved in the early stage5 of the strategic plan development, and staff are updated on the p￿n and priorities at the start of each academic year. Meaningful engagem￿( 1$ encouraged through the stsff foNm at each School where employees across all departments dlscuss and make recommendations direc¢ to senior management. A diverse programme of well-being activltles Is available io all staff. c) The need to foster the Group's relati¢)nships with stakeholders: The Group's beneflclarles and donors are the focus of all the Schoo&. operntions. A falr and consist￿¢ selectlon pollcy ensures a éiver5e and thriving p¥Jil body who are fully supported throughout thelr education from nursery to external examinatlons for the senior schools of their choice, enabling and preparing pupils for later lrfe. Robust recrultment of the best eeachers and valulng Staff supports stablllty and a hlgh standard of education. A fair policy of bursary awards. Consist￿llY applled, supports famllles who may not otherwlse be able to access education at the Schools. The parent contract forn)s the basis of the relationship with fee payers. This is reviewed regularly ¢0 ensLtre best practlce and then applied fairly and consi5cently. Parental enga8emenc15 maSntalned through regular correspondence and fermly publications. All suppliers are treated fairly and promptly with adherence to business Eerms. The GroL4P recelves regular report5 and updates in fundraising regulations through the Schools; the Schoo15 do not engage with any external third paw fundraisers. dl The Impact of the Group's operations on the communr(y and the en*lronment'. - The Group supports the Schools in undertakln8 a full pn)vision of communlty and partner5hp activity. Full detalls are contalned on page 5. e) The desirnbili¢y of the Group maln¢alni)g a reputation for high standards of buswbe55 conducL The Schools. Bribery Policies set out the responsbilitles for staff to report any incidents or suspl¢ion of fraud. brlbery or corruption arising in the course of their work and to cooperate fully with related investigations. The Schools take a zero tolernnce approach towards fraud. bribery and corruption. The Whistleblowing Policies support staff in thi% approach. fj The need to act fairlr. - All Trustees and senKJr staff complete an annual Conflict of Interest Declaration. There have been no reported incidents of unacceptable relationships. DULWICH PREPARATORY SCHOOLS TRUST ANNUAL REPORT OF THE TRUSTEES YEAR ENDED 31 AUGUST 2023 ACHIEVEMENTS AND PERFORMANCE Revlew of achlevements and performance for the year The Schools delivered a full academic timetable. including rhe provision of ar¢ drama. music and sport. Furthermore, the Schools embraced a typical pro8ramrne of evenLS, including concerts, matches. museum & ocher visits and overseas trips. The Trust's Schools sent 148 pupils to over 44 drfferent senior schools12022.' 157 and 45), including many of the top schools In the UK. Between them these puplls gained the offer of 57 5cholarshlps and awards (2022.. 841. The Trust's recognltlon of the importance of providing a first class education was demonstrated by the variety of these award5 which were achieved not only for academic success, but a150 for art, DT, muslc and sport. The £4.3 mllllon bank loan taken out by the Trust to fund the Lower Sthool project In London project is being repaid in accordance with the terms of the loan. The Trust has also funded the new senior school facilities at Crarbbrook at a cost of £1.8 million. The Trust is now focu5sing on the senlor school facllltles at Dulwith Prep London: works are now well advanced wkh the flnal phase due to start in the summer 2024. FINANCIAL REVIEW The Group's net income for the year ended 31 August 2023 arnounted to £164,182 12022., £1,684,920). The net book value of flxed assets amounted to £45,547,341 Q022: £43.151,678). The Trust receives income through the rents received from the Schools for thelr use of educational and residential property. It also benefi¢S from donatlons of surplu$ fvnds from the Schools when the Schools. reserves policie5 pemit. In addition, the Schools seekto enhance their income thrc*Jgh letting their facilltles both to regular and casual hirers. Reserves The Trust's reserve5 policy is to main12in its free unrestrlcted reserves at a mlnlmal level given the confidence it ha5 in it5 continuing income stream from the Schools, both from rents and from any Surpluses. At any time, however, it may build up reserves In anticipaclon 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 temi to invest in capital projetts to support the Schools. At the year end, therefore, the TrusE had negative free unrestricted re5erYes of £5,047,02412022.. £4.345,16S). Funds held by the Group at the yearond totalled £40,784,986 (2022.. £40.813B04) with negative free unrestricted reserves of £4,816,26412022.. £2,360,731). The Trustee5 have considered the reserves policy and have concluded that no adjumments to the policy need to be made. DULWICH PREPARATORY SCHOOLS TRUST ANNUAL REPORT OF THE TRUSTEES YEAR ENDED 31 AUGUST 2023 Going concern The plans for both Schools to extend their offering to age 16+ have the full support of the Trust. The Dulwich Sch¢)ol Cranbrook's Year9 opened in September 2023 wrch more puplls chan forecast. Dulwich Prep London will welcome pup115 Into Year 9 from Septenber 2025. Furthermore, in support of London's expansion. negotiations are well adY2nced wrth Southwark Councll over the assignment of the unexpired tenn of their lease of the Mary Datchelor playlng field5 from the Dulwich Estate. Having as5e55ed both the Trust's and the Group's financial position and its aY4ilable facilities, the risks to which it is exposed and the detsiled cash projections noted above the Trustee5 are satlsfied thac It remalns appropriate to prepare the financial stat￿nents on a going concern basis. Futhre plans The Group's key fucure aim5 can be SUm￿rarI5ed as follows.. •To continue to stretch and challenge all pupils academically irresPect￿t of thelr level of ablllcy and to offer them a broad range of artlstic, musical and 5POrting cptions. • To provide an all-¢hrough educatlon at the Schoo15 to age 16+ whlle also enablkng those chlldren wlshing to do so to move on to a large and varied Trnge of senior schools at age I l + or 13+ • To continue to seek and provlde opportunltles to engage with local maintalned schools and the wider community and through this to ensure staff, parents and pupils have an appreciation of the world around them and the differ￿Ce they can make. . To offer bursary places ae the Schools to pupils whose parents would not otherwise be able to afford the fees. To contlnue to Increase wpll numbers. • To contlnue to ensure flnancial stablllty. • To retain high performlng staff and provide them wlth developmental rralnlng. To continue to develop the Schools. sites as and when required to fulfil the Schools, $tratÈgies. PRINCIPAL RISKS AND UNCERTAINTIES The Trustees consider the affordabS1ity of fees by Par￿[S across the independent sector to be the princlpal rlsk faced by the Trust. Thls risk Is likely to increase as additional challenges are posed by inflation, the eccnomic envlronmenc and the po¢entlal changes to the tax ind charitable status of Independent schools introduced by future government5. Enrolment is a critical issue at both Schools and this is closely moni¢ored by the Trust. Health and Safery is always a sEnificant area for risk management. The risks rnnge from flre and infr3$tructure to personal risks (most notably when away from the campus on triP5 and expeditions). The level and breadth of activity at the Schoo15 is impressive and the risks associated with all activities are minimised by thorough planning and risk assessment. Detalled considerntion of risk is undertaken for each School by its Board, with input from fhe Senior Leadership Teams. The Trust also considers risk at Group level and the Risk Register 15 a Standing item at each Board meeting. The risk management P￿CeSS and the resulting register identify risk5. assess thelr Impact and likellhood and, where necessary, recommend controls to mitigate and DULWICH PREPARATORY SCHOOLS TRUST ANNUAL REPORT OF THE TRUSTEES YEAR ENDED 31 AUGUST 2023 monitor those risk5 which are assessed as high. Sn Parti￿lar, the threat arising from any terrorist activity in London is kept under close review. The generic controls used by the Trust to mlnlmlse rlsk include.. detailed terms of reference together wlth formal agendas for Board actlvty. strategic development plannin& reviewed annually by the Board; comprehensive budgeting and management accounting: established organisatKsnal Structures and lines of reporting: formal wrlttu) pollcies Including clear authorisation and approval levels,. vetting procedures as requlred by law for the protectk>n of the vulnerable. The Trustees re8Lblarly revlew the effectlvenes5 of current plans and Strategies for managlng all identified major risks for the Group, Approved by the Board of Dulwich Preparatory Sthools TnJ5t. Including, In thelr capacity as company director5, approvln8 the Directors, and Strategic Report contained therein. and slgned on ifs behalf by: D H Nelson Chalrrnan D*ts: is * gJ•Vfr 10 DULWICH PREPARATORY SCHOOLS TRUST INDEPENDENT AUDITOR'S REPORT FOR THE YEAR ENDED 31 AUGUST 2023 Oplnlon We have audited the financial sotements of Dulwich Preparatory Schools Trust 'the charltable company. and its subsidiaries 'the Group for the year ended 31 August 2023 whlch comprlse the Consolidated Statement of Financial Activities. Consolidated and Company Balance Sheets, Consolidated Statement of Cash Flows and note5 to the financial statements, including signrficant accounting policles. The financlal reportlng framework thar ha5 been applied in their preparnrion is appllcable law and United Kingdom Accountlng Standar&. including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Genernlty Accepted Accounting Practice}. In our oplnlon the flnanclal statements.. give a true and fair view of the Sta￿ of the Group's and the charitable company's affairs as a¢ 31 August 2023 and of the group'sl Income and expenditure, for the year then ended., have been properly prepared in accordance with Unlted Kin8dom Generally Accepted Accounting Practice.. and have been prepared in accordance with the requirements of the Companles Act 2006. Basls for oplnlon We conducted our audlt In accordance wlth Internatlonal Standards on Audltlng (UK) IISAS (UK)) and applicable law. Our responsibllitles under those standards are further described in the Auditor's responsibilities for the audit of rhe financlal 5ta*ments section of our reporl We are independent of the Group In accordance with the ethical requlrements that are releydnt to our audit of the financial statements in the UK, including che FRC'S Ethical Standard. and we have fulfilled our other ethlcal re5ponsibllities in accordance wlth these requirements. We belleve that the audit evidence we have obtained is sufficlent and appropriate to provide a basis for our opSnion. Concluslons relatlng to golng concern In audidng the flnanclal sratements. we have concluded that the Trustees. use of the going concern basi5 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 relatlng to even£s or condltions thaL indlvldually or collectively, may cas¢ significant doubt on the charitable company's or the Group's ability w continue as a golng concern for a perlod of at least tsyelve months from when the firAncial statements are authori$ed for i55ue. Our responsibilities and the responslbllides of the Trustee5 wlth respect to going concern are described in the relevanf section$ of this reporc. Other Informatlon The Trustees are responsible for the other inforniauon contained within the annual reporc The other infomation comprises the information included in the annual repor¢ other than the financial statements and our auditor'5 report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicidy st2ted in our repor¢ we do not expre55 any form of a55urance conclusion thereon. 11 DULWICH PREPARATORY SCHOOLS TRUST INDEPENDENT AUDITOR'S REPORT FOR THE YEAR ENDED 31 AUGUST 2023 Our responsiblllty IS to read the other Inforn)atSon and, in doing so. consider whether the other information is materlalty Inconsistent with the financlal statements or our knowledge obtained In the audit or otherwise appears to be materially mi5Stated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this give5 rise to a material misstatement in the financial strtements themselves. If, based on the work we have performed, we conclude that there is a material mi55tatement of this other informatlon, we are requlred to report that facL We have nothing to report In this regard. Oplnlons on other matter$ pre5cAbed by the Companles Act 2006 In our opSnlon based on the work undertaken In the course of our audit the inforniation given In the Trustees, repo￿ which inclLbdes the directors. report and the strdtegic report prepared for the purposes of company law. for the financial year for which the financial statements are prepared is conslstent w￿h the flnanclal statements; and the strategic report and the directors, report Included wlthln the Tru5tee5' report have been prepared In accordance with applicable legal requirements. Matters on whlch we are required to report by exceptlon In Ilgh¢ of che knowledge and understanding of the Group and charlrable company and thelr environment obtained in the course of the audii we have not idenufied material misstatements in the s¢rateglc report or the directors, report Included wlthin the Tru5tees' reporL We have nothlng to report In respect of the following matters In relauon to which the Companies Act 2006 requires u5 to report to you rf. In our opinion.. adequate and proper accounting record5 have not been kept: or the financlal statements are not in agreement with the accounting records and returns: or certain disclosures of Trustee$, remuneration spe¢lfied by law are not made; or we have noc received all the Information and explanations we require for our audiL Responslbllltles of trustees As explained more fully in the Trustees. responsibilitie5 Statement Set out on page l. the Trustee5 (who are also the director5 of the charltable company for the purposes of company law) are responslble for the preparation of the financial 5taternents and for being satisfied that they give a true and fair view, and for such In￿rnal control as the Trustees deterniine 15 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statement5. the Trustees are responsible for assessing the charitable company's abillry to condnue as a going concern, disclosing, as applicable, matters related to going concern and using the galng concern basis of accounting unless the Trustees either intend to Ilquidate the charitable company or to cease operations, or have no realistic alternative to do so. 12 DULWICH PREPARATORY SCHOOLS TRUST INDEPENDENT AUDITOR'S REPORT FOR THE YEAR ENDED 31 AUGUST 2023 Auditor's responslbllltles for the audlt of the Ilnanclal Statements Our objecuYe5 are to obtain reasonable assurance about whether the financlal statements as a whole are free from material mi5Statemen( whether due to fraud or error, and to Issue an auditor's report that includes our opinion. Reasonable assurance 15 a high level of assurance, but is not a guarantee that an audit condutted in accordance with ISA5 (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material If, Indlvidually or in the aggregate. they could reasonably be expetted to Influence the economic decisions of user5 taken on the basis of these financial statements. Details of the e￿nt to whlch the audlt was consldered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below. A further descriptlon of our re5F)onsibllitle5 for the audit of the financial statements Is located on the FSnancial Reporting Council's website at: www.frc.org.uklauditorsre$ponslbilities. This description forms part of our auditor's reporL Extent to whlch the audlt was consldered capable of detectln8 Irre8ularltles. Includlng fraud Irregularities, Includlng fraud, are instances of non-compllance wlth laws and regulatlons. We identified and assessed the risks of material misstatement of the financlal statements from Irregularities, whether due to frdud or error. and discussed these betsyeen our audit team members. We then designed and perfom)ed audlt procedure5 responsive to those risks, including obtaining audit evidence sufficient and appropriare to provlde a basis for our opinion. We obtained an understsnding of the legal and regulatory frameworks within which the charltable company and group operates, focusing on those laws and regulations that have a dlrect effect on the deterniination ol materlal amounts and dlsclosures in the flnanclal statements. The laws and regulations we considered in this context were the Companles Act 2006. the Charltles Act 2011. tsxation legislation, together wlth the CharStles SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of otsr audit procedures on the related financial statement Items. In addition, we considered provisions of other laws and regularions that do not have a dlrect effect on the financlal statements but compllance with which might be fundamental to the charitable company's and the Group's ability to operate or to avoid a macerial penal(y. We also considered the opportuniues and incentives that may exist withSn the charitable company and the Group for fraud. The law5 and re8ulations we considered in thls context for the UK operdtions were The Education (Independent School Standards) Regulations 2014, Data Protecuon Regulation (GDPR), He21th and safery legislation and employment legislatlon. Auditing standards limlt the required audlt 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, rf 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 managemenL 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 journal$. reviewing accounting estimates for DULWICH PREPARATORY SCHOOLS TRUST INDEPENDENT AUDITOR'S REPORT FOR THE YEAR ENDED 31 AUGUST 2023 biases. reviewing any regulatory correspondence with the Charity Commission, Independent Schools Inspectorat< Ofsted and reading minutes of meetings of those charged with governanee. Owing to the inherent limitations of an audi[ there15 an unavoidable risk that we may not have detected some material mi$statements in the financial statements. even though we have propedy planned and performed our audit in accordance with auditing sfandards. For example, the further removed non 1130,528 Charltable acdvltl Education 121287.7QO) {5.5O0) 122,29J.206) (20,556.4071 Total ¢¥p•ndlthr• 121395,1)60} (s.soo 21400.560) 120,68&9351 N•t Income 127,269 36.913 104.182 1,684,920 TrnDsf•r b•Men fund5 P￿s￿on ￿h•me ￿tUar￿1 plnllloss¢sl 5,U60 193.000 (5.060) 193,000 401,ts)0 Net mov•meTht In lunds for the year {59,871) 31,95J (28,818) 1085.920 Fund balanels blfvvd l Septtn*er2022 40.790.947 Il857 40,813.804 38,727,884 Fund b￿anceS df¥Nd JI Auluit 2023 40 731076 40 784 986 40.813.804 The notes on pages I g to 37 bm) part of th?5e financial ststements. DULWICH PREPARATORY SCHOOLS TRUST CONSOLIDATED AND CHARITY BALANCE SHEET AS AT 31 AUGUST 2023 Group 2023 Group Trust t•s 2022 2023 2012 FIXED AssErs Tangibl• a5S•ts 45,547,341 43,151h78 42.711063 41,416,418 CURRENT ASSETS Debtors Cash at bank and in hand io 701.423 1.556.093 3.257,516 38.287 1.279.727 ,318.014 Sl,169 2,633.632 2.684.801 4,70S.194 5,356,317 CREDITORS: Amounts tsllln¥ d wlthln t)n* year (6.473.055) 15.413,3851 (4,fj05.460) 14,735.8511 NET CURRENT LIABILITIES (3,216,139 157,0681 (3.487,446) 12,051,OSQI TOTAL ASSETS LESS CURRENT LIABILITIÈS CAEDITORS.. amounts f•lllng du• After more one y* 41.331.202 43,094.610 19.230.617 39,365.368 (1.546.210) 12.280,8061 <1,546.216) 11280.8061 WET ASSETS EXCLUDING PENSION SCHEME LIABILITY 40.784,986 40.813,804 37,Ce4.562 37.684.401 Dqfin•d b•n•fit p•nslon scheme Iliblll NET ASSETS INCLUDING PENSION SCHEME LIABILITY 40.784.986 40,BI 3,804 37,484,401 37.084,562 CHARITY FUNDS Unr•strttt*d lundy •xdudlng pqnslon reserve 40,731.076 40,790.947 37.671,039 37,071,200 Pen$lw r•ser¥• Restrlcted fvnds 53.910 21857 13.362 13.362 TOTAL FUNDS 40,784,9B6 40,813.804 37.684,401 37,084,562 note5 page5 19 to 37 form part of these financial statements. The parent charlty result for the year endid 31 Auguit 2023 was 3 surplus of £599,839 P022.. £1,871.5741. The financial 5atemeDts were approved by thÈ TruS￿e$ tsn 7dW and 51gn•d on thelr behaw. by.. D H NELSON Crynpony Number 579923 Ch￿￿ ol Board 16 DULWICH PREPARATORY SCHOOLS TRUST CONSOLIDATED STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31 AUGUST 2023 2023 2022 Net cuh Infiow from operatlons Net proYldDd by Op•ra￿nS ￿(￿￿￿tI 2,44S,421 2,337.766 Cthi Ilows fr¢+m Inv•stln¥ irtlvltl• Ad(NtkJns to Ix¢d ai*ts14xcludlng capittl1￿d borrowlnK costs) {3M41719) (1,096,000) Net proceeds Irom of unilble nxed asxets 669,892 InV•srm￿[ kncune ￿nk Inter•st J9,572 1094 N•t a•h In) Imi•#tlw acdvltlo (3.OOJ.157> 1424,0941 CASh Ilowi from Ilnllnckn¥ *tthltlti: Repa￿ent of I Interesi oxp•ns• (691.441) (99,911) 1676.346 1102,4831 Net c4¥h In) from fflnanclni Ktlvltlè• 791,363 78,829 Chanxe In cash ush aqufval•nts In th• r•portln8 p•r4od (2.149.101) 1,134,843 Cash ￿$h e9ufvd￿nts at the b•8lnfiln¥ ol p•rlod 4,705,194 3.570,351 Cuh •quhTal•nts at th• •nd the r•portSnq p•rlod 2,554,093 4.705,194 Th• not•5 on py 19 to 37 lorm pv¢ olth•s• fln8n¢lil st4tem•nts. DULWICH PRepARATOAY SCHOOLS TRUST CONSOLIDATED STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31 AUGUST 2023 2023 2022 {1) R￿￿￿¢1114t￿0n of not movement In fvndi to notush flow from oper*tln8 icdvltles Nét Intomlry Miourcos Eliminatlon of non 1142.OCIJI 1.437,211 99.911 9.810 (SOJOO) 1,354,336 102.483 1446,6721 cr•a￿lID•cr•1seI In crqdhors lexeludlns bank loans. In ad¥anc• sch•m• dopos1ts1 909,14J Intr•aiollD*crtttsÈl kn lets In *dvane• sch•m• ¢r•dltors IOecrw•llln¢rwè In par•nts' dep￿1￿ 141,305 116.2461 (34,990) 2.281.239 652.846 N•t tAth Snfiow from •p•ratboni 2,445.421 2.337,766 2023 2022 (U) An&tyil• of cuh •nd c•th •q¥lYal•Dts C￿h ai battk *thd In hand 2.556.093 4.705,194 18 DULWICH PREPARATORY SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 I ACCOUNTING POLICIES 1.1 Bas1$ of prepaT*tlon The financ￿1 51atements have been prepared in accordancé with the Financial Rèportni Standard pplScaNe in the UK and Rop￿11[ of Ireland IFRS1021, the Companlts Act 2C#)6 *nd thè s￿[￿M￿nt ol Recunmended Practice appIl￿ble to charitses preparlng théir atcaunts In aceardante %thth thè Flnancial Reponing Stanthrd applicable in rhe UK and Republlc of Ireland (FRS 1021. The accounts ar• dt7WTh UP C the historical c05t ba515 01 accountlng. Th• Trusr is 4 Public Benefit EntSty reOsrer•d as a charfty In England and Wales Icharlty numbor. 312715 and a cenwany Ilmked by guarantqe, Ico4Tpgny numb•r. IY15799231. Its r*tered offlcels 42 Alleyn PDri Jlwkh, London 5E217AA, The consdld8r8d finanelal stathm•nts Include the resulti of th• Trust afid Irs two 5ubsldhrfqs. Dutrwlch Prep London and The Dulwkh Sch¢ol Cr8nbrttek Ito%ether'th¢ Gwup). Accordlngty, the Consomdated Sraroment ol Flnanclal Actlvlti*s relleet5 the Incc4ning resour(•s and r•￿Ur￿ ￿pend•d of the Group and not the Trust a5 an indiY¢dual entity. 1.2 Golng Concern H•vlng r•Yi•w•d thè ￿$h posltlot) ol the Trust togeth•r wlth the •xpece¢d onplng dèmand lor phce5 at the Schod5 and future prolected cash flows, the Tru$teÈ$ hav* a reasonablq ￿PectatiOn that the Group h*$ adequat• r8sourt•s ro condnu• Irs for the loreseeable lutur• and consld•r thar th•rt wer• no miterial UncertaIn￿eS over th• Group's flnanciil vlabllliy. ￿e0rdIn$l¥. they tontlnuq th adopt th• ing concern hsls In Pre￿rInK th• flnanclal statements. 1.3 Crltl¢al thccountlng lud#•m•nts and key ¥ource• of eitlmadon uncertalnty In the applica￿on of the accoun￿￿& policles, Trustees arn rnqulrtd to make judgements, eS￿rnat¢s. and assumptions about rhe e*rrylDg valut tsf asiets and liablllties that ire not r•idlly apparent from other sourcq5. The q5timites and underlylng 155umptlon5 are based on hlsttsrje￿ exprlenct attd other fattors th4t are cansldernd to b• r•l•vanL Actual results may drfler frorn th•s• *S￿rnat•s. Th• eS￿nN(*S and und•rtyln% a55urrption5 are re¥1•￿￿ on an ongolng ba515. Revlslons to itctyJntin8 estimates are recognlsed In the ￿rIOd kn whlch the e5tiinate Is reY15ed W the rev151on affects only that rlod, ¢r In the perlod of tht r•YlSh?n and filty￿ perlod5 ff the reylslon affettqd curr•nt fvtum periods. The Grovp's14blllty lor the NofvTeachinK Sr*ff dqfimd ben¢fit per¥bn schemo Involves a number e4 assumpticns a5 dlsclosed in note 17. In the ￿eW of the Trustees. no other assumptions conceming the (Jr ￿￿mI￿on unc•rralnw affec￿￿8 asstts or1libllitle5 at the balance 5hee¢ date ar¢1Skely ¢0 result in a material adjustment to thor carrying amounts th th? nexifinancinl year. DULWICH PREPARATORY SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS (coMfiNUED) FOR THE YEAR ENDED 31 AUGUST 2023 I ACCOUNTING POLICIES {Jl 2,910.000 1205,CtsJI b) ChAnw In the pre¥•ht of th• d•fin•d Iwi•fft obllK4tlon Group 2023 Group 2021 Opeolt)g d*nn•d b•n•nt cbllgation Int•re5t cost 2.705,000 112.000 3,120,C#)O s3.C￿0 Act￿rIal loswi Benefits pald Cl95kn8 defined b•ndt obllytlon (JoJ,ooo) {58,lJQOI 1456.000 1445,0001 (23.000 1705.OC4J ) Chllnp In th• hlr valu• ofthe stheme amets Group 202J Grtyjp 2021 OpenirryNr value c4 scheme isxet5 Interest Incorne R¢tum in excess of In￿r*st incomé Contrlbutions by employer Benefrt5 pald CID5ifig fair value of schem? assets 2.910.000 125.01)0 (206.000> 180,QIX* {54000} 1.951.000 1577.000 45,1)00 161.000 150,( r13.QJOI 191QtsJO DULWICH PREPARATORY SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 17 PENSION SCHEMES (ContIDu￿) d) The amounts hKlwled wi¢hln th¢ StAtth*nt of FI￿￿¢￿1 A¢t5vltles Group 2023 Group 2022 Past sèrvlc4 cost Interlsr on ¢)bll tk*n Intor•st Incorne ijiooo (125.000) 53,ty)0 145.WO} Total amuntcharg•d to th• Sut¢ffleTht ol Flnanckl A￿¥￿￿•1 (13.000) Restridon on recov•rnble surplus Nrt actuar&l fal0￿{19¥*¢5I r¢coKnls•d In th• y•ar Pemlan Jcheme actuarfal Dlnlllos81 (290,000) 97,000 {193.000} 1205,0001 606.0 401.000 Th• Group •xp•cts to 116.091,697) <44.200) 91,800 220.411 136,8961 3.157,876 3.294,719 3,478.288 3,257.823 Abbrovlatsd 8*l*nc• Sh••t 201J 2022 E￿ed assets Cash a¢ bank Othqr assqt5 Credkgr5'. Amounts h111ng dué ￿thIn onè Creditor5.' Amounts l•lllni du& afr•r mor• on• yeir PRnslon 5th•m* Ilablll 2.170.907 1.029.843 4,152.026 (3.1575.088) 1,521,744 1.60S,469 3,847,984 13.717J741 3.257,823 Toul fijnds 3.478,188 3.257.823 34 DULWICH PREPARATORY SCHOOLS TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2023 19 SUBSIDIARY Et4TITIES {Contlnued RaOst•red offite Ccffipany number Charlty numbèr Coursehorn. CraThbrook Kert TN17 3NP 10815140 1174358 Abbre¥l&t￿ St•temont of FIn￿£1￿ Actlvltles 2013 2022 Ihtome E¥pendlwre Penslon scheme plns11105seJl Net mo¥emerf in fvnd¥ for the year Funds bl￿d I S•pt•ffl￿r 2022 dlknl JI Auwst 2013 6,107.569 {6,807.892) {148,8¢)0} {849.123) 471,363 377,760 5,963,860 15.97&7581 309.205 294.307 177,056 471,363 Abbr•vl•t•d B￿aft￿ Sh••t 23 2022 Flxed asseu Cash at bahk Other Cr•dltorn.. Amwnts l*nin8 du• wlthkn on• y•ar 6S8.368 146,S21 210.568 (1,493.217) 213,501 632.719 1840.9511 Credlrors.. AM￿jnts lalllng du• alt•r more ￿Or P•n51on ¥th•m• Ihblliy N•t •J¥•ts 377,760) 471.363 Totsl Fundi 377.760 471.363 35 DULWICH PREPARATORY SCHOOLS TRUST CONSOLIDATED STATEMENT OF FINANCIAL AcfiviTIES FOR THE YEAR ENDED 31 AUGUST 2023 20 PRIOR YEAR COMPARATIVE NOTE (A) 2022 STATEMENT OF FINANCIAL ACTIVITIES Not•s UTrr•rtrlct•d Funds Rutrlct•d Funds 2022 Total 2022 2022 In¢om• fromi Chvlt•bl• •rtl¥ltlw: SchoDI f?N rtt•hable Oth•r qthJcl￿QTrII Inccffj• Amclllary income l)ther tr•din¥ •cthYltl¢s Non-wclll*ry trndlng Inccffl• 20139.063 751.093 674,268 20.839.063 751,093 674.268 93,177 15 95,677 BBnk and oth•r int•r•st VoluntAry iourc Qonation5 and1•8acI•s SC 9.160 9,660 Totlll knc(The 22,360,195 11,660 12,371.855 ExpBndlturB on: R￿j￿nI fundi Finanting c05U 1130,5281 1130.5281 Chtht•bl• Ktlvltl•i £d¥￿￿on 4nd gr•n¢ Ma￿n4 (20.553.907) (L5CQI PO,556.407) Total •xp•ndltyr• 120,684,4351 12,500> 120.686.9351 1,675.760 9,160 1,684.920 Trnnsfer b•ts¥qqn fvnds Penslan xhom¢ •ctyJar5al ral 2,587 401,000 12,587) 19 401.wo Net movèmont In lunds for the y•ar 2,07?,347 6,573 2.OBS,920 Fund balantts bfvd I September 2021 3&711,6C 1&284 38.n7,884 Fund balances alfv￿ 31 Au￿$t 2022 40.790,947 21857 40.813,804 36 DULWICH PREPARATORY SCHOOLS TRUST CONSOLIDATED STATEMENT OF FINANCIAL FOR THE YEAR ENDED 31 AUGUST 1023 10 PRIOR YEAR COMPARATIVE NOTE (CondThu￿} (8> 2022 SUMMARY OF MOVEMENTS ON MAJOA PUNDS Atl S•ptwnber 2021 IncomSn8 rwourc•• GaIr￿1 TrMdor At J l Augurt 2022 •xp•nd•d Group funth 3¢711.600 16.284 38.n7,8B4 22,360.195 120,604.4351 12,5001 120,696,935) 401.Lb)O 2,507 (2,SBn 40.790,947 22,857 40.813,804 Ao5trKted Total fundi 22.371.855 401.Q)O Truit fund¥ Unr¢strl£t*d eithcted Total lundi 35.242.748 13.362 35.256.110 3,673,579 11.845.127) 37.071.200 13,362 37.084,562 3,673,579 1.845,127 (CI 2021 SUMMARY OF NET ASSETS BY FUNDS Vnreitrkted ft•5tr1tted Funds Funth Tod Funth Group Ting￿le Assqfs N•t Current {L￿b11th•s) l A5S•ts Loni T•rm 43.151.678 179,9241 11280A061 43,151.678 157,06TJ I2280￿06) 22,857 40,790,948 22,857 40.813,805 Truit T•n8*11¢ kns•ts Net Current ILlablllrl•il l A15etS L￿( T•rm Cr•dlwrs (2,064,412) (2.280,8061 37,071.100 lJ,362 12,051,OSOI Q,280.806 37.084.562 13.362 37