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2021-03-31-accounts

ANNUAL REPORT2021 ESTATE

Contents

Board of Trustees 04
Chairman’s statement 05
Chief Executve’s foreword 06
Trustees and administratve informaton 07
Property development 08
Property maintenance 09
A word from our benefciaries 10 - 15
Who we are 16
2021 fnancial positon and performance 17
Our history and background 18
Trustees’ report 20 - 23
2020 -2021 year in review 24
Independent auditor’s report to the board 25 - 27
Statement of fnancial actvites 28
Balance sheet 29
Summary income and expenditure account 30
Cash fow statement 31
Notes to the fnancial statements 32 - 47

The Dulwich Estate Annual Report 2021

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Meet the Estate Board of Trustees

Dr Irene Bishop

Jasmine Boadi

Pamela Dusu

Dr Andreas Köttering Ben Kottler

Segun Osuntokun

Sarah Slater

Russel Vaizey

Nick Wood

Rosemarie Jones

Richard Pinckard

Peter Yetzes

Penny King

Caroline Price

Chairman’s statement

The year just gone has been remarkable in many ways. As a charitable trust, the Estate witnessed and was part of a surge of community and professional good will, resilience and adaptability that has illustrated the strength of belonging to a foundation partnership.

Throughout the year, our school beneficiary partners have led the way. They had to adapt at high speed, to the everchanging public health landscape, in order to keep educating. They became medical testing centres for pupils and the wider community; they introduced blended teaching and learning across all age ranges, often streaming lessons live to those isolating at home; school leaderships had to manage serious timetabling and logistical challenges to deliver this; and all while implementing new exam systems in years 11 and 13. The Dulwich Almshouse delivered critical care to keep residents safe while helping them stay connected to the wider community. And the Chapel moved online providing a place for the Christian community to still come together for worship.

supported adversely affected vulnerable commercial tenants, to support a return to growth as soon as possible. Income on the investment and property portfolios is down, but the robustness of the London Village economy has meant that those businesses which remained open, saw strong trade, and as the economy reopens, the Estate has no void retail units and we look forward to welcoming several new businesses into the area. We reduced our costs, by introducing more efficient systems, freezing recruitment and driving value. The Estate team, not furloughed, has risen to the challenge of working remotely, implementing new online working processes, while continuing to maintain land, property and partnerships for the benefit of all.

The resulting income has facilitated wide-ranging educational support which has been critical this year in particular. In Dulwich, means-tested bursary funds continue to widen opportunities to education at three outstanding schools. Outside Dulwich, pastoral care programmes, IT suites and infrastructure improvements have also supported the continuity of an outstanding education at St Saviour’s and St Olave’s and the Central Foundation Schools of London.

These challenges have been immense. Yet we have heard time and again of the efforts of our teaching, Almshouse and church colleagues who continued to serve their communities, while reaching out beyond their organisations to support others. Schools have joined in the efforts to design and distribute PPE equipment; teachers have delivered food to some of their most vulnerable families; schools have conducted fundraising campaigns to ensure all pupils are connected and have laptops.

My thanks also go to the Board of Trustees, including those who left during the year, namely John Cruse, Nicola Meredith and Roger Westbrook. We have welcomed new trustees who are giving generously of their time - Caroline Price, Pamela Dusu, Segun Osuntokun and Jasmine Boadi. Their expertise is helping carry us through, and I look forward to building together on the new shoots of recovery in the year ahead. Dr Andreas Köttering, Chairman of Trustees

The work of The Dulwich Estate underpins these efforts. Our role is to generate a sustainable income for beneficiaries, while looking after the Estate and engaging with a wide range of stakeholders in the process.

This year, we have worked exceptionally hard to meet the distribution target in a turbulent climate. We have actively

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Chief Executive’s foreword

In reflecting on the year’s impacts and achievements, it is within the context of rapid adaptation to the times we are in. One of our great successes is that we have managed to keep people safe and ensure business continuity, as the pandemic has evolved.

From March 2020 onwards, health and safety catapulted to the top of every employer’s priority list. The whole team at the Estate put in immense work to keep everyone safe and ensure business continuity by transferring all systems to remote working. This involved many changes to our working systems. We implemented new Covid-19 health and safety rules initially, before closing the office completely. At the time of writing, our office had not yet reopened.

Covid has been a catalyst for pre-existing IT transformation plans, which have been developed across the business over the last 12 months. We are now able to manage our property portfolio more efficiently, raise invoices and survey jobs online, and capture data and insights as we go.

Thank you to a variety of other organisations with whom we have partnered to maintain our green heritage and rich wildlife. London Wildlife Trust, The Dulwich Society and Southwark Council in particular. The ancient woodlands at Sydenham Woods have never been more visited than during lockdown. This has highlighted the need to enjoy our green spaces while maintaining a great respect for nature, and we are grateful to be working with LWT whose work encourages just that. With this in mind the Estate backed the campaign to save two ancient woodland oaks and their massive carbon store, which thankfully led to a tree preservation order on the oaks.

This past year has been defined and shaped by our response to the global Covid pandemic and a third national lockdown from December to April, from which we are just emerging.

Estate beneficiaries have led the way during the year, in adapting their outstanding services for their communities. As schools switched to online lessons, Almshouse residents were well supported by a number of community organisations which brought supplies to their doors. Dulwich Almshouse Trustees, under the leadership of a new Chairman, have asked the Estate to modernise the building to ensure its flats are fit for purpose.

Throughout these changes and challenges, we have forged strong collaborations locally. We have continued to work with residential and commercial tenants during shop closures and uncertain economic times, supporting our businesses wherever possible. I hope the talked about new localism can aid the shoots of recovery over the coming 12 months. The Estate’s commitment to maintaining a vibrant community, serving all ages, remains strong and we will play our full part.

Simone Crofton, Chief Executive

Trustees, executives and advisers

Trustees

Those who served during the year and up to the date of signature of the financial statements as members of the Board of the Incorporated Trustees of The Dulwich Estate were:

Nominated by

Trustee

Andreas Köttering, D Phil, MSc, BSc (Econ) Irene Bishop, CBE, BEd, MA, LLD

Chairman Deputy Chairman

Dulwich College

Dulwich College

Central Foundation Schools of London Central Foundation Schools of London James Allen’s Girls’ School Co-optative Co-optative Co-optative

Jasmine Boadi, BA (Hons) (from 1.1.2021) John Cruse, BSc (Hons) (to 31.12.2020) Pamela Dusu, MA (from 1.8.2020) Rosemarie Jones, MRICS Penny King, LLB Ben Kottler, BA

Nicola Meredith, BA (Hons) FCCA (to 31.7.2020) Segun Osuntokun, BA (from 1.8.2020) Richard Pinckard, BSc (Econ), FCA Caroline Price, LLB (Hons) ACA Sarah Slater, BSc (Hons), MRICS Russell Vaizey, MA, FCA

James Allen’s Girls’ School Archbishop of Canterbury Alleyn’s School The Dulwich Almshouse Charity Royal Institution of Chartered Surveyors St. Olave’s and St. Saviour’s Schools Foundation Archbishop of Canterbury James Allen’s Girls’ School Alleyn’s School

Roger Westbrook, CMG, MA (to 31.5.2020) Nick Wood, MEng Peter Yetzes, BA, JP

Executives

Chief Executive Director of Property Director of Finance Principal Building Surveyor

Simone Crofton, BA, PgDip Law, FRSA Adrian Brace, MRICS Paul Greenwood, BA, ACA Simon Hoare, MRICS

Principal professional advisers

Statutory auditor Bankers Investment managers Legal advisers

Moore Kingston Smith LLP, Devonshire House, 60 Goswell Road, London EC1M 7AD Barclays Bank Plc, 1 Churchill Place, Canary Wharf, London E14 5HP Sarasin & Partners LLP, 100 St Paul’s Churchyard, London EC4M 8BU Cripps Pemberton Greenish, 45 Cadogan Gardens, Chelsea, London SW3 2AQ Lee Bolton Monier Williams, 1 The Sanctuary, Westminster, London SW1P 3JT Thackray Williams LLP, Kings House 32-40 Widmore Road, Bromley, Kent BR1 1RY Daniel Watney LLP, 165 Fleet Street, London EC4A 2DW

Property consultants

The Old College, Gallery Road, London SE21 7AE Tel: 020 8299 1000 E-mail: info@thedulwichestate.org.uk www.thedulwichestate.org.uk Charity Number 312751

Contact

The Dulwich Estate Annual Report 2021

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Unto This Last - the sustainable furniture workshop is new to Herne Hill

Property development

As a result the third quarter will see a flurry of new business openings. Family and dog friendly Megan’s Café and Deli has taken over the former Audi Showroom. Just around the corner in the former Roger Pope Opticians unit a new coffee shop and social enterprise, Redemption Roasters, will open. At 27 Dulwich Village, the second restaurant from the team behind Michelin awarded restaurant Peckham Cellars, is to open later in 2021. Combined, these openings will provide a huge boost to the north end of the Village.

Our high streets in Dulwich Village, West Dulwich and Herne Hill, are an important aspect of our community. Providing businesses and services that neighbourhoods rely on, and jobs which underpin a vibrant local economy.

In West Dulwich the former Lloyd’s Bank has been transformed into a children’s play and café space called Peace + Riot and The Oystermen Seafood Bar and Kitchen is set to arrive at 84 Park Hall Road.

The majority of the distribution of beneficiary income comes from the Estate’s commercial and residential property portfolio. 2020 brought unparalleled challenge for the retail sector – our commercial tenants included.

In Herne Hill two exciting new sustainable businesses, Lowie, a British clothes brand, and Unto This Last – a furniture design studio, offer new retail experiences.

While public health was at risk, many businesses had to rapidly diversify and adapt – providing delivery or take-away options, or close their doors altogether. The Estate prioritised working closely with commercial and residential tenants to protect the high street for the future.

The Estate’s residential portfolio has remained strong – showing the enduring appeal of the area. The average void period now for flats is just 7 weeks compared to over 12 weeks a year ago. We wish everyone well in this coming year, and will be working hard to support recovery and ensure the area flourishes.

As we see a cautious reopening of the economy, we are experiencing a shift to shopping local, demonstrated through an increased demand in retail units. At the time of writing, the Estate has no vacant retail units – all are leased or pending new leases.

Adrian Brace, Director of Property

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As more pupils than ever cycled to school, the Estate created a new cycle path
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Property maintenance

The Covid-19 pandemic has caused significant disruption to the Estate-wide repair and maintenance programme, with only essential work possible at times.

Despite the Covid-19 restrictions it has been possible to proceed with repair and improvement of the Estate’s 185 assured shorthold properties, which includes the major refurbishments of several units.

Work has continued on the 1960s residential leasehold estates’ lift improvement programme. The lifts at Grenville Court and Frobisher Court have been upgraded and it has been agreed that work to progress the much-needed lift improvements to the remaining six tower blocks will start at the beginning of 2022.

Detailed discussions regarding future building and maintenance plans have continued with residents’ associations representing the high rise residential leasehold developments, particularly in relation to new fire safety regulations following Grenfell, which is a challenge for all parties. We are continuing to reformulate five-year plans for all our properties to ensure leaseholders can plan for future expenditure.

We have refurbished a number of our commercial units in Dulwich Village and Croxted Road, ready for fitting out by new businesses. The work in Dulwich Village has been carried out as part of a wider scheme to improve the retail area – making it more suitable for modern needs. In addition, we have continued to look after the Scheme of Management amenity areas and roads throughout the Estate, as well as the Almshouse, The Old Grammar School and Christ’s Chapel.

During the year footpaths in College Road and Hunts Slip Road have been upgraded to provide shared cycle/pedestrian access. We continue to work with London Wildlife Trust on the Great North Wood project, which is protecting ancient woodland and bringing it back into use for visitors.

Simon Hoare, Principal Building Surveyor

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A word from our beneficiaries…

Beneficiary organisations explain how funding from The Dulwich Estate supports their work.

Dr Joe Spence

Master, Dulwich College

“[The impact of fee relief for parents who could not afford to ] pay full fees at Dulwich College cannot be overstated. Bursarial awards are transformational for the bursary holders and their families and it is thanks to The Dulwich Estate and to other generous benefactors that 197 pupils at the College are in receipt of means-tested bursaries. The majority of our bursarial awards are for between 75% and 100% of school fees.

Our beneficiaries are talented and enthusiastic young people, eager to engage with the world and all it has to offer. It is our responsibility to support them in reaching their academic potential and to nurture their aptitudes, be they in the sciences, the creative arts, in sport or in service leadership. For their families, the financial security afforded by a bursary – especially during the Covid-19 pandemic - has been an important anchor as we all navigate uncertainty.

By helping those in need, we contribute to the delivery of two of our primary aims, ensuring that all our pupils feel equally secure and valued and nurturing a supportive community that encourages a sense of social responsibility.

At Dulwich we celebrate our diverse pupil community, recognising the benefit it bestows on everyone. ”

“[Central Foundation is a state-funded boys’ school located in the Shoreditch ] area of London. It serves a diverse community that lives within an area with some of the highest levels of child poverty in the UK. The school’s commitment is that the rigour and breadth of its curriculum should be transformational to the lives of all of its students.

The Dulwich Estate’s grant is integral to the school delivering on this commitment. The challenges of the last year have been significant, but as we move on from this, we believe that this ambitious curriculum will be an important contributor to negating the educational impacts of the pandemic.

Music School

The grant helps meet the costs of 8 music tutors who provide an extensive music

provision. Over 500 students benefitted from this provision in the last year.

Jamie Brownhill

Sports

Headteacher, Central Foundation Boys’ School

The grant helps fund specialist coaches in a number of sports such as football, rugby, cricket, athletics and table tennis. This allows the school to provide a broad range of sporting experience for all students and an extensive inter-school sports programme.

Extended Curriculum

Additional classes are provided free of charge, to support exam success, improvement in literacy and numeracy, and many additional activities beyond the main curriculum.

The Access Project

A full-time mentor is employed to coordinate the support programme for pupils with the potential to study at Oxford, Cambridge, and other leading universities. The school has an increasing number of students achieving places at these universities, as well as some of the top American universities. ”

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“ Funding from The Dulwich Estate and other generous donors has allowed our students to remain engaged with their studies ” whilst navigating such a difficult and disruptive time.

Russell Walters

Jane Lunnon

Chief Executive, St Olave’s and St Saviour’s Schools Foundation

Head, Alleyn’s School

“[As for all schools, this year has been very difficult ] at St Saviour’s and St Olave’s. At St Saviour’s, the girls’ school in Southwark, teaching was initially difficult due to so many students not having suitable IT. Deprivation is high and in some cases there was no IT in the house, in others shared between a number of siblings and perhaps with parents. A call went out and funding was generously given so that by Christmas, all students could be provided with suitable IT so that they could undertake their lessons. Over 400 laptops were issued. In addition, the school had to provide students with a food bank and, recognising the difficult economic conditions many families find themselves in, is having to pay for, for example, shoes, clothing and sanitary wear for some students as well as continuing with food boxes. For some of the girls, the school provides a safe place to be, so lockdown meant a significant increase in pastoral care provision being necessary. In spite of this, the quality of teaching and learning has however been kept high, remarkably.

“[There are many reasons why I feel honoured and proud ] to have started as the 13th Head of Alleyn’s this year. Chief amongst these, is our school’s commitment to making a transformational difference to as many young people as possible through our means-tested bursary programme. It is exciting that just short of 10% of our current Senior School pupils benefit from significant bursary funding. The majority of the bursaries we offer cover 100% of fees, which means we are giving children and young people access to truly life-changing educational opportunities. We are acutely aware that the ongoing and vital support of The Dulwich Estate is what enables much of this; we do not take this for granted and we are hugely grateful for it.

Our challenge at Alleyn’s now is to develop this further; to reach more children and to find ways to make a more powerful difference in our own communities and beyond. One way we can do this is to continue to build our partnership and outreach programme, through which we currently connect with local primary school, care home and charity partners, as well as with organisations across London and around the globe. This is not just a good way for our children and staff to give back to society, it is also right at the heart of our vision of education.

St Olave’s, the boys’ school in Orpington, sees a lower level of deprivation and has therefore been able to focus more on the teaching and learning, however pastoral care of students at home has also been a major concern. Student engagement remained outstanding, reflected in another set of excellent university offers in spite of the difficulties over exams and grades. The school has used the down time to mend roofs, build further sports facilities and upgrade its WiFi and broadband provision to ensure that it is ready for a full return to student life.

Edward Alleyn (himself a clear product of social mobility) founded schools which arose out of the Renaissance spirit of pioneering altruism and enterprise - and our aim at Alleyn’s is to offer just the kind of inspiring, public-spirited, fun and enterprising education that would have made him proud. Covid or not Covid, that is just what we have been doing. The playhouses may have been shut, but our school has soldiered on and it has been both a joy and a privilege to continue supporting the community during this strange and challenging year. ”

Funding from The Dulwich Estate and other generous donors has allowed our students to remain engaged with their studies whilst navigating such a difficult and disruptive time. ”

“[Although it may not be ideal to join a new school during a global pandemic, the ] welcome that I have received from JAGS and from the local community in Dulwich could not have been warmer. Schools have faced many unprecedented challenges over the past year, and it is a privilege to lead such a kind, thoughtful and dedicated community at JAGS, who have grown closer and stronger in the face of adversity. I am constantly impressed by our pupils who combine their scholarly talents with a dizzying array of commitments to activities, enrichment and the wider community on a daily basis.

One of the biggest strengths of our school is its diversity, and we are fortunate that we can use our annual gift from the Estate towards providing means-tested bursaries for those who could not otherwise afford to send their daughters to JAGS. This ensures that, far from being an elitist school, our diversity remains deep-rooted, and we are a community that truly represents the cultural and social diversity of our south London neighbourhood.

It is absolutely my belief that all girls should be given the opportunity to grow and flourish in an environment where there is no limit to their ambitions. Our pupils thrive as individuals within a dynamic and supportive environment which is rooted in academic excellence and yet fully committed to the breadth of a holistic education. ”

Alex Hutchinson

Headmistress, JAGS

“ Our diversity remains deep-rooted, and we are a community that truly represents the cultural and social diversity of our south London neighbourhood. ”

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“[The funding from The Dulwich Estate has been even more essential this year. ] The challenges we have all faced over the course of the pandemic have been enormous and schools have played a significant role in supporting young people and their families.

At Central Foundation Girls’ School, the Dulwich funding we have received has been crucial in meeting the additional needs of students over this period, allowing us to extend our provision and support in school and via extra-curricular activities. We have taken a ‘blended’ approach to the provision this year to ensure our students could continue to participate and engage with our support and enrichment programmes throughout lockdown. The need to extend our students’ cultural capital remains a priority for our school; we aim to ensure all our students are equipped with the knowledge, skills and confidence to access opportunities that will prepare them for the next steps in their personal journeys.

Carla Prince

Provision this year has included:

Associate Headteacher Central Foundation Girls’ School

CFGS has faced huge demands on our funds to operate successfully during the pandemic. The needs of some of our most needy students were met with the provision of the Trustees’ laptops; they enabled these students to fully access the curriculum and will serve them in good stead for their school years ahead.

Ultimately, the funding we receive from The Dulwich Estate supports our capacity to achieve excellent outcomes at both Key Stage 4 and 5, and importantly to sustain our unwavering mission to value our students, to empower them and to transform their lives through a quality education. ”

“ Our residents have managed to get through the year without a single case of Covid, which is real credit to them and their families ” and carers, and our own staff.

Martyn Craddock Chair of Trustees, The Dulwich Almshouse Charity

Revd John Watson

“[It is well known that older people have been the worst affected by the ] pandemic, and the past year has been particularly hard for the Almshouse residents. The loss of daily human contact, and living with endless worry, will have been especially difficult for them. Happily, our residents have managed to get through the year without a single case of Covid, which is real credit to them and their families and carers, and our own staff. We are all looking forward to the day when we can get together and bring back the things people cherish most dearly.

Vicar, St Barnabas Dulwich and Christ’s Chapel and Foundation Chaplain

“[We have all faced the past year with huge ] amounts of bravery, creativity, patience and I am sure in many ways sadness. The Chapel has faced periods of closure in this time as we have responded to the UK Government’s guidelines. Weddings and baptisms were postponed, services cancelled and many school visits put on hold.

During the past year, our longstanding scheme manager Shelley left us to live closer to her own family. The Trustees and the Estate team used the opportunity to review how we operate the whole charity. Rather than replace Shelley, and rely on the Trustees for so much of the day to day operations, it was decided to bring in an external charitable organisation Harrison Housing. They specialise in managing older person’s housing for a number of other almshouse charities. They started in January 2021, and the handover has gone smoothly. We are already benefitting from their superior professional knowledge and skills.

But characteristically the Chapel community and parish in general has responded with energy and openness. Recordings of services were made in the Chapel and then placed on the parish website/Facebook page for people to participate. Easter last year was online only but thankfully Christmas was in-person services.

There were a number of exciting changes on the Dulwich Almshouse Board during the year. I replaced Catrin Waugh as Chairman. I have been on the Board for four years already, and am CEO of another Southwark almshouse and grant making charity. The Board also welcomed DJ Dhananjai, an experienced property finance professional, and Dolores Pickersgill who also works in the almshouse and care home sector.

Despite some uncertainty about what lies ahead, we continue to plan for, and prepare for increased services, concerts, and activities, with a new dynamic Director of Music for parish, Christopher Woodward, ably supported by Marilyn Harper. Change is a constant theme and so is challenge. I have no doubt that with the faith and hope the Chapel community share and with the energy that was revealed in meeting our current challenges, our provision of space to worship and reflect in times of deep anxiety will continue into the decades to come, for all who wish to find time to draw strength and solace. ”

Finally, the quest for a new almshouse took some big steps forward this year. The Board is currently in discussions to refurbish and remodel the existing Edward Alleyn House, potentially for it to become a modern building suitable for housing older people for another 200 years. We are also continuing to explore the potential for building a new almshouse as part of a joint development arrangement with the Estate. Watch this space!

The Board are forever grateful for the financial assistance the The Dulwich Estate provides each year, as well as the brilliant support of Simone Crofton and her staff team. Without it, we would not be able to make such a difference to the people and organisations we are there to support. ”

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Who we are

387 5000 7 means-tested homes on schools student bursaries the Estate supported by the annually Estate, offering supported at outstanding beneficiary 12 education schools

12 playing fields for community use

1 6.7m historic chapel distributed 16 for worship and in 2020/21 sheltered community events accommodation flats in our 79 Almshouse 40.5 businesses acres of supporting Estate size: allotments for the local community use economy 1500

Estate size: 1500 acres

business mentoring for 80 students

music lessons for counselling for 90 60 students students

2021 financial position and performance

The Board aims to manage its assets effectively to provide long-term sustainable distributions to its beneficiaries. The budgeted financial targets are scrutinised throughout the year and compared to actual outturn. This year, through the responsible stewardship of the Estate’s assets, we have been able to distribute £6.5 million to our beneficiaries. The distribution division is determined by our charitable scheme. This enables beneficiaries to deliver additional social impact through educational support, warden-assisted housing, and provision of a place for community worship and of historical interest for all.

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Total income Total expenditure
Investment income Property repairs,
£2,429k investment and maintenance
22% £3,280k
30.9%
Tollgate
£160k Other operating costs
1.4% £11m £10.6m £744k
7%
Real estate income Tollgate management
£8,473k £147k
76.6% 1.4%
Distribution to beneficiaries
£6,455k
60.7%
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Income distribution to beneficiaries

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Christ’s Chapel of God’s Gift James Allen’s Girls’ School
£30k
£1,460k
0.5%
22.6%
The Dulwich Almshouse Charity
£110k Alleyn’s School
1.7% £6.5m £1,676k
distributed to 25.9%
St Olave’s and St Saviour’s
Schools Foundation beneficiaries
£205k Dulwich College
3.2% £2,284k
35.4%
The Central Foundation
Schools of London
£690k
10.7% Period covered: 1 April 2020 – 31 March 2021
Restricted fund only (see definition under reserves policy on page 22)
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Our history
and background
Edward Alleyn, a successful actor-manager and
entrepreneur, purchased the Manor of Dulwich
in 1605. Some years later he decided to create a
charitable foundation in Dulwich, endowing it with his
estate and other property. Christ’s Chapel of God’s Gift
was the first of the buildings to be completed, being
consecrated on 1 September 1616. Letters patent were
granted by King James I, and on 21 June 1619 Alleyn’s
College of God’s Gift was formally established.
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The original beneficiaries were twelve poor scholars, six poor brothers and six poor sisters, all chosen from four parishes with which Alleyn was closely associated: St Botolph’s Bishopsgate (where he was born); St Saviour’s Southwark (where he had lived and been Churchwarden); St Giles Cripplegate (where his Fortune Theatre was situated); and the parish of Camberwell, in which his Manor lay. In 1773 the new parish of St Luke’s took the place of St Giles as a nominating body.

James Allen, Warden and Master of the College of God’s Gift from 1712-1746, furthered the founder’s wishes to provide education. In 1741 he made over to the College six houses in Kensington, the rents of which were to be used in establishing two small schools in Dulwich, one for boys and one for girls, the origin of James Allen’s Girls’ School.

In 1842 the College established a grammar school – later named the Lower School – for the education of 60 poor boys from Dulwich. The boys of the James Allen Foundation were transferred to the grammar school and that foundation became responsible for the education of girls alone.

The Dulwich College Act of 1857 reconstituted the Foundation and in 1882 the charity was again re-organised. The Upper School became Dulwich College and the Lower School became Alleyn’s School. Two boards of trustees were formed: the Estates Governors with responsibility for managing the Estate’s property, investments and the Eleemosynary branch (Edward Alleyn House comprising 16 flats benefiting the elderly in need of housing); and the College Governors to administer Dulwich College, Alleyn’s School, Christ’s Chapel and Dulwich Picture Gallery.

Provision was also made for payments for educational purposes to schools in the parishes of St Saviour’s, St Botolph’s and St Luke’s in place of their right to nominate pupils to the Foundation. The present Scheme continues that provision, by the annual payments that are made to St Olave’s & St Saviour’s Schools Foundation and to the Central Foundation Schools of London.

St Olave’s & St Saviour’s Schools Foundation dates back to 1561; the girls’ school of the foundation is now located in New Kent Road, London, SE1, and the boys’ school in Orpington, Kent. The Central Foundation was formed in 1891 to administer schools which had been founded earlier in the City of London. The boys’ school is now located in Cowper Street, London, EC2, and the girls’ school in Bow Road, London, E3.

New buildings for Dulwich College were built between 1866 and 1870 in College Road. James Allen’s Girls’ School was established on its present site in East Dulwich Grove in 1886 and Alleyn’s School moved to its buildings in Townley Road in 1887.

The current arrangements for the various charities of the Foundation were introduced by Schemes approved by the Charity Commissioners on 31 July 1995. The Boards of Estates Governors and College Governors ceased to exist on that day. With effect from 1 August 1995 the functions of the Board of Estates Governors were assumed by the Trustees of The Dulwich Estate (as regards the properties, investments and other activities of the Estate) and by the Trustees of the Dulwich Almshouse Charity (as regards the Eleemosynary Branch). All four of the parishes from which the original beneficiaries were chosen, retain formal connections with The Dulwich Almshouse Charity. The Trustees of the Dulwich Estate also became Trustees of the Charity of Christ’s Chapel of God’s Gift at Dulwich. Separate Boards of Governors also came into existence for Dulwich College and for Alleyn’s School.

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Trustees’ report

Charity scheme and order

The scheme made by order of the Charity Commission on 31 July 1995 regulates the charity. In June 1998 the Trustees of The Dulwich Estate became an incorporated body by a further order of the Charity Commission. This does not change the legal status of the charity or the liability of its Trustees, but is of particular advantage in the execution of legal documentation on behalf of the Board of Trustees.

Objects

The Dulwich Estate is obliged to apply all its net income to its beneficiaries as set out in its Scheme. The Board continues to exercise its role to manage the endowment assets in the long-term interests of all the beneficiaries of the charity. Success in achieving this objective is measured in terms of the increase in the annual income distribution to the beneficiaries and maintaining the value of net assets in real terms.

Public benefit

The Trustees have reviewed the Charity Commission’s guidance on the requirement to report on public benefit. The Board is satisfied that the charity provides, through its funding to the beneficiaries tangible public benefit to the community at large. This is:

The Scheme of Management is self-financing and

non-charitable, but seeks to preserve, for those living within the boundaries of the Estate, the amenity for the common benefit.

The Board meets annually with its beneficiaries to discuss performance, hear how the distributions from the charity have been spent and to foster collaboration among them.

Structure of the organisation

The Dulwich Estate is governed by a Board of 14 Trustees – 11 appointed by nominating bodies and three co-optative members.

Co-optative Trustees are appointed by the Board through selection criteria which seek to ensure a broad mix of skills and representation.

Trustees ordinarily serve for five years and may then be re-appointed for a second, continuous, term of five years.

New Trustees are introduced to the operation of The Dulwich Estate and are made aware of the charity’s objects. All Trustees are encouraged to attend relevant seminars and training courses which are made available to the charity sector.

The Scheme of Management Committee has authority, on behalf of the Board as the managers of the Estate’s Scheme of Management, to make decisions regarding applications made under the Scheme (which was established under the Leasehold Reform Act 1967 and the Leasehold Reform, Housing and Urban Development Act 1993). The Committee meets monthly.

The Nominations and Remuneration Committee comprising the Chairman, the Deputy Chair and two Trustees is authorised to deal with the appointment of new Trustees and staff matters and other issues as delegated by the Board. Other ad hoc working groups are established from time to time, as appropriate.

Responsibility for the day to day operation of the Estate is delegated by the Board to the Chief Executive and the senior management team.

As required under the Scheme of Management, there is an Advisory Committee whose membership comprises four Trustees of The Dulwich Estate and four representatives from local amenity society,The Dulwich Society, and local resident associations. This Committee meets three times a year.

Governance

Four ordinary meetings of the Board are held each year at which the matters considered include strategy, the budget for the forthcoming year, the half-year results, forecasts for the current year and the final accounts and distribution to beneficiaries.

Trustees or nominees of the Board of Trustees are also appointed onto the external boards of some of the school beneficiaries and the Dulwich Almshouse Charity. The Trustees of the Estate are also Trustees of Christ’s Chapel of God’s Gift at Dulwich.

There are four meetings of the Finance Committee, which has the principal function of considering, in detail, financial matters and then making recommendations to the Board. The Investment Committee meets four times a year. The Nominations and Remuneration Committee meets at least annually when it reviews staff performance and remuneration. The Property Committee meets four times a year with the Estate’s property advisers in attendance. The risk management assessment working group meets on an ad hoc basis. All committees have terms of reference and authority as delegated by the Board. Committees and working groups report to the Board of Trustees at the earliest opportunity. Extraordinary meetings of the Board, committees and working parties are convened as necessary.

Beneficiary meetings

The Board met with beneficiaries in December to present a forecast for income distributions and to discuss development projects. All Beneficiaries contributed to a presentation about impacts and the work of the Foundation family, and how Estate funding supported organisational objectives and delivered public benefit.

Annual View

Unfortunately, due to the Covid 19 pandemic, the Annual View was cancelled for this year.

The Chairman meets regularly with the Chief Executive to discuss matters of significance, the details of which are then circulated as appropriate to Trustees and discussed at meetings of committees and the Board.

20 The Dulwich Estate Annual Report 2021

The Dulwich Estate Annual Report 2021

21

Board of Trustees - responsibilities

The Board of Trustees is responsible for preparing the annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Charity law requires the Trustees to prepare financial statements for each financial year that give a true and fair view of the state of affairs of The Dulwich Estate and of the income and expenditure of the charity for the year. In preparing those financial statements the Board of Trustees is required to:

The Trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time, the financial position of the charity and enable it to ensure that the financial statements comply with the Charities Act 2011 and regulations made thereunder and the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of the financial statements and other information included in annual reports may differ from legislation in other jurisdictions.

The Board of Trustees confirms its acceptance of these responsibilities.

Risk management assessment

The Board reviews, annually, the register of risks to which the charity is exposed. The Board is satisfied that the procedures and controls currently in place are sufficient to mitigate the perceived risks to an acceptable level, recognising that claims in respect of trees, private roads and footpaths are a possibility, given the extent of the charity’s property holdings.

The Trustees are committed to understand, evaluate and, where possible, mitigate those risks affecting the Estate’s activities and the achievement of its Objects and the delivery of public benefit. There are certain events that may impact the ability of the Estate to sustain distributions to its beneficiaries at levels consistent with prior periods. Risks considered include a change in the outlook for certain sectors of the global economy (including the local Dulwich economy) negatively affecting performance of the property investment portfolio; a failure to maintain the real estate investments to the requisite standard; a change in the charitable status of the Estate, and a significant escalation in the Estate’s costs at a rate exceeding any commensurate growth in income.

The working environment disruption and the global and local economic impact caused by the Coronavirus pandemic adversely impacted investment and property values in the early part of 2020. The economic recovery that we have seen in the early part of 2021 remains dependent to a significant extent on the continued success of the national and international vaccination programme. Trustees will continue to monitor the strategies being adopted by senior management to mitigate those risks which are within the Estate’s ability to influence and control, in particular the preservation of real estate income sources and maintenance of strong internal financial controls.

Reserves policy

The Scheme made by Order of the Charity Commission on 31 July 1995, which regulates the charity, stipulates that it must distribute the balance of its income after the deduction of management expenses and the costs of maintaining, repairing and insuring its property to its beneficiaries. As the application of this income is fixed under the Scheme, these funds are classified as restricted funds. Under clause 3 (2) of the Scheme the charity may only set aside funds from the Restricted Fund to meet the future costs of managing, maintaining, developing and improving land belonging to the charity and therefore it has no free reserves (as defined by the Charity Commission) at the balance sheet date. The balance on the Restricted Fund at 31 March 2021 was £0.74 million (2020: £0.76m) and represents the net book value of operational fixed assets and the FRS102 pension asset, none of which are presently available for distribution to the beneficiaries.

The Board has established, by way of transfer over the years from the Restricted Fund, Designated Funds to meet its obligations, and in particular those to maintain and develop the Charity’s property assets. The details of these Funds are fully described in note 14 to the Financial Statements. At the year end, these totalled £0.65 million (2019: £0.74m). Total Funds also include Permanent Endowment Funds of £354.0 million (2020: £317.9m) of which £120.6 million (2020: £88.4m) is held in readily realisable listed investments. In addition, the charity maintains cash balances of at least £1.5 million in order to manage operating cash flow requirements. This is in addition to the cash necessary for the payment of distributions to beneficiaries throughout the year.

Fundraising activities

The Dulwich Estate does not carry out any fundraising to support its charitable objectives as the Estate’s income comes from its investment property portfolio and other income generating sources.

Income and return on stock investments

Management of the charity’s stock market investments is delegated to its appointed Fund Managers on a fully discretionary basis, with the objective to exceed the benchmark over rolling 3-year periods. The benchmark is the MSCI All Country World Net Total Return Index.

The turmoil created in the markets by the Coronavirus pandemic led to a rapid and significant fall in the value of the portfolio between 31 December 2019 and 31 March 2020. The world stock market recovery throughout 2020 resulted in significant growth in the capital value of the portfolio which, on 31 March 2021 stood at £120.6 million (2019: £88.4 million). The total return on the portfolio, was 39.6% against the benchmark return of 43.2% (2019: actual -7.3%, benchmark -8.0%). Investment income, fell during the year to £2.43m (2020: £2.52m), as anticipated and is expected to increase modestly in this coming financial year provided that the international economic recovery is sustained.

Income on real estate

With the exception of residential properties subject to regulated tenancies, the Charity’s properties are let to tenants at rental levels established by reference to the open market for similar properties. The Estate takes the advice of its consultant surveyors and letting agents in agreeing rents. It is the policy of the Board to maintain its properties in a state of good repair in order to seek to maximise rental income. Total Real Estate Income for the year was £8.47 million (2020 - £9.32m) a reduction of 9.1%. . Rents on residential lettings were resilient during the year at £4.02 million (2020: £3.91m), an increase of 2.8% (2019: 10.6%) possibly reflecting the benefit of Furlough support to individuals but also reflecting the success of the continued focus on rapid repair and re-letting of vacated properties. Commercial letting income was £4.40 million (2020: £5.35 million), a reduction of 17.8%, nearly half of which was attributable to the full-year loss in rental income from the sale of a significant commercial property in September 2019 and the balance from reductions in commercial rental incomes as a result of certain tenants entering into CVAs and smaller independent retailers being unable to meet their full rental payments.

Subsidiaries

The Charity has two subsidiaries, Dulwich Estate Services Limited and Alleyn Road 102 Limited, neither of which have been consolidated on the basis of materiality. A summary of the results of these companies is given in note 10 (b) to the Financial Statements.

The Scheme of Management

The charity’s Scheme of Management continues to be applied in line with its stated objective: to preserve the amenities of the Estate for the common benefit. A number of Trustees meet monthly to review applications for alterations to properties or works to trees, which are referred to the committee for decision.

Connected charities

The Trustees of The Dulwich Estate are also Trustees of Christ’s Chapel of God’s Gift at Dulwich. Some members of the Board are Board members of the beneficiary schools; The Trustees nominate two trustees to the Dulwich Almshouse Charity, one of whom is a current Trustee of the Dulwich Estate. The Dulwich Estate provides management and administrative services to the Chapel and The Dulwich Almshouse Charity (DAC), the details of which are provided in note 17 to the Financial Statements.

Looking forward

This year we have prioritised the health and wellbeing of Estate staff, the support of those businesses most vulnerable to the effects of the pandemic, as well as ensuring all our operations and contracts have adhered to Covid guidance. In this work, we have been inspired by the resilience of our school, Chapel and Almshouse partners who have shown great adaptability in continuing to serve their communities.

In 2021 we will support the early shoots of renewal that are emerging through a number of new, exciting businesses opening on Estate high streets, and continue to care for and conserve our green heritage while planning a sustainability strategy for the years ahead. A strong local neighbourhood with vibrant shops and services has taken on a new relevance, after the past 12 months. As ever, our core ambition remains to operate to high standards as a responsible landlord; help enrich the lives of students through access to outstanding education and extracurricular services; help colleagues at the Almshouse Charity look after Almshouse residents in accommodation which is fit for purpose and help maintain Christ’s Chapel as a place of community worship.

We have taken steps during this difficult time to modernise our systems and strengthen our partnerships, and this will stand us in good stead for the year to come.

The final report is approved by the Board of Trustees of The Dulwich Estate on 3 July 2021 and signed on its behalf by:

Dr Andreas Köttering, Chairman of Trustees

22 The Dulwich Estate Annual Report 2021

The Dulwich Estate Annual Report 2021 23

2020-2021 year in review

471 20% 1 tree works of properties digital carried out refurbished transformation programme - moving from paper to online 243 6 processes planning new businesses applications coming to actioned by Dulwich in 2021 Scheme of 38,500 Management visitors to

38,500 visitors to the website

1 ancient 103 woodlands - visitors to maintenance monthly open of Sydenham surgeries Hill Woods

1 new cycle path created

30 500+ 4 trees planted Teams meetings newsletters

Auditor’s report

Opinion

We have audited the financial statements of The Dulwich Estate for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet, the Cash Flow and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that,

individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:

The Dulwich Estate Annual Report 2021 25

Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities statement set out on page 20, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charity.

Our approach was as follows:

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or charity to cease to continue as a going concern.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

This report is made solely to the charity’s Trustees, as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity’s Trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charity and charity’s Trustees as a body, for our audit work, for this report, or for the opinion we have formed.

Moore Kingston Smith LLP Statutory Auditor

Devonshire House 60 Goswell Road London EC1M 7AD

Date: 19 July 2021

Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006.

26 The Dulwich Estate Annual Report 2021

The Dulwich Estate Annual Report 2021 27

The Dulwich Estate

Statement Of Financial Activities

Year Ended 31 March 2021

The Dulwich Estate
Statement Of Financial Activities
Year Ended 31 March 2021
Note
INCOME:
Investment income
Real estate income
2
Tollgate receipts
3
Dividend and interest income
4
TOTAL INCOME
EXPENDITURE ON:
Raising funds
Real estate maintenance expenditure
6
The Scheme of Management
7
Tollgate expenses
3
Investment management fees
6
Charitable activities
Income distribution to Beneficiaries
16
Governance costs
6
TOTAL EXPENDITURE
Net income / (expenditure) before
investment gains/(losses)
Net (loss) / gain on investments
10
Realised gains on properties
8
Unrealised gain / (loss) on revaluation of
freehold properties
8
Net income / (expenditure)
Transfers between funds
14
Net income / (expenditure) after transfers
Other recognised gains and losses
Actuarial Loss on pension scheme
18
NET MOVEMENT IN FUNDS
Funds brought forward at 1 April
FUNDS CARRIED FORWARD
AT 31 MARCH
14		 2021
Restricted
Fund
£ 000's
8,473
160
2,429		 2021
Designated
Funds
£ 000's
-
-
-
-
694
-
-
-
-
-
694
(694)
-
-
-
(694)
606
(88)
-
(88)
740
652		 2021
Endowment
Funds
£ 000's
-
-
-
-
-
-
-
-
-
-
-
-
32,608
1,286
2,420
36,314
(196)
36,118
-
36,118
317,936
354,054		 2021
Total
Funds
£ 000's
8,473
160
2,429
11,062
3,974
54
147
509
6,455
181
11,320
(258)
32,608
1,286
2,420
36,056
-
36,056
(44)
36,012
319,435
355,447		 2020
Total
Funds
£ 000's
9,315
219
2,525
11,062 12,059
3,280
54
147
509
6,455
181		 4,903
49
154
401
6,685
166
10,626 12,358
436 (299)
-
-
-		 (11,146)
9,878
(5,082)
436 (6,649)
(410) -
26 (6,649)
(44) (188)
(18) (6,837)
759 326,272
741 319,435

The Dulwich Estate Balance Sheet

Year Ended 31 March 2021

The Dulwich Estate
Balance Sheet
Year Ended 31 March 2021
Note
FIXED ASSETS
Real estate
8
Operational property
9(a)
Other tangible fixed assets
9(b)
Intangible fixed assets
9(b)
Investments
10
CURRENT ASSETS
Debtors
11
Money Market Funds
Cash at bank, on deposit and in hand
12
Creditors: amounts falling due within one year
13
NET CURRENT ASSETS
Defined benefit pension scheme asset
18
NET ASSETS
FINANCED BY:
PERMANENT ENDOWMENT FUNDS
14
DESIGNATED FUNDS
14
RESTRICTED FUND
14		 £ 000's
£ 000's
£ 000's
£ 000's
225,956
222,273
1,450
1,450
110
86
174
44
120,565
88,425
348,255
312,278
2,517
2,244
173
173
9,774
9,894
12,464
12,311
(5,695)
(5,594)
6,769
6,717
423
440
355,447
319,435
354,054
317,936
652
740
741
759
355,447
319,435
2021
2020
312,278
6,717
440
319,435
317,936
740
759
319,435

Approved by the Incorporated Board of Trustees on 3 July 2021 and signed on its behalf by:

Signed: Dr Andreas Köttering (Chairman) Dr Irene Bishop (Deputy Chairman) Countersigned: Simone Crofton (Chief Executive)

All amounts relate to continuing operations. There are no gains or losses other than those stated above.

28 The Dulwich Estate Annual Report 2021

The Dulwich Estate Annual Report 2021 29

The Dulwich Estate

Summary Income And Expenditure Account Year Ended 31 March 2021

Year Ended 31 March 2021
2021 2020
Total Total
Funds Funds
Note £ 000's £ 000's
Total Income 11,062 12,059
Expenditure excluding distribution to Beneficiaries (4,865) (5,673)
Net income for the year before transfers 6,197 6,386
Net transfers from Reserves 258 299
Available for Distribution 16 6,455 6,685

The Summary Income and Expenditure Account is derived from the Statement of Financial Activities which, together with the notes to the accounts on pages 32 to 33, provide full information on the movements during the year on all the funds of the Charity.

The Dulwich Estate Cash Flow Statement Year Ended 31 March 2021

The Dulwich Estate
Cash Flow Statement
Year Ended 31 March 2021
Note
RECONCILIATION OF NET EXPENDITURE TO
NET CASH INFLOW FROM OPERATING ACTIVITIES
Net expenditure before transfers and investment gains
Depreciation charge for year
9
(Increase) / decrease in debtors
FRS102 pension fund adjustment
Increase / (decrease) in creditors
Investment income
4
Income distribution to Beneficiaries
16
Net cash inflow from operating activities
CASH FLOW STATEMENT
Net cash inflow from operating activities
Income received on investments
20(a)
Capital inflow / (outflow)
20(b)
Income paid to Beneficiaries
16
(Decrease) / increase in cash in the year
RECONCILIATION OF NET CASHFLOW TO MOVEMENT IN NET FUNDS (Note 20 (c))
(Decrease) / increase in cash in the year
Cash and liquid resources at 1 April
Cash and liquid resources at 31 March
20(c)		 2021
£ 000's
(258)
74
(229)
(27)
12
(2,429)
6,455
3,598
3,598
2,390
251
6,239
(6,371)
(132)
(132)
11,374
11,242		 2020
£ 000's
(299)
64
3,451
(86)
(816)
(2,525)
6,685
6,474
6,474
2,504
(212)
8,766
(6,996)
1,770
1,770
9,604
11,374

30 The Dulwich Estate Annual Report 2021

The Dulwich Estate Annual Report 2021 31

The Dulwich Estate Notes To The Financial Statements

Year Ended 31 March 2021

1. Accounting policies

c) Freehold properties of the Estate

a) Basis of accounting

The property at Dulwich was conveyed to the Charity by a Deed of Grant dated 24 April 1620. The Incorporated Trustees have no Deed in their Custody or under their control relating to the freehold interest in the property and the private ways other than the Deed of Grant and Counterpart Leases. There is no historic cost associated with the property and accordingly it is not possible to present a statement of historical cost profits and losses. Properties both on and off the Estate are considered to be investment assets and therefore they are not depreciated in accordance with FRS 102. It is the policy of the Board of Trustees to revalue approximately all of the Estate’s properties each year, and to capitalise improvements to properties.

These financial statements are prepared on a going concern basis under the historical cost convention as modified by the revaluation of certain fixed assets. The financial statements are prepared in Sterling which is the functional currency of the entity. Monetary amounts are rounded to the nearest thousand pounds. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (including update bulletin) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Charities’ Act 2011 and UK Generally Accepted Practice.

d) Fixed assets and depreciation

Fixed assets are included at cost and are depreciated as follows: Motor Vehicles 25%, Furniture & Equipment (including that for the Scheme of Management) 20%, Computer Equipment 33.33%, Tollgate Building & Equipment 20%. The rates of depreciation used, charged on original cost, are an estimate of the useful life of the assets. Generally, individual items costing under £1,000 are not capitalised but the cost is written off to repairs. The Old College, Dulwich, the Charity’s office is considered to be an operational asset of the Charity and is revalued every five years. No depreciation is provided on this property (notes 8 & 9) and an annual impairment review is undertaken.

The Dulwich Estate meets the definition of a public benefit entity under FRS 102. The financial statements have been prepared under the historical cost convention as modified by the revaluation of freehold properties, operational property and investments (notes 8, 9(a) and 10(a) respectively) and in accordance with applicable accounting standards.

Going concern

The Trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the Charity to continue as a going concern. The Trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. After making enquiries, particularly with respect to the expected significant impact of the Coronavirus pandemic on all of the Charity’s income sources, the Trustees have concluded that there is a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. The Charity therefore continues to adopt the going concern basis in preparing its financial statements.

e) Intangible assets and amortisation

Intangible assets are recognised at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised so as to write off the cost of intangibles less their residual values over their estimated useful lives. Intangible assets are amortised as follows: Website 33.33%, Data and Document Management 25%. The rates of amortisation used, charged on original cost, are an estimate of the useful life of the assets and no charge has been made against the additions this year as the new system was not brought into service until after the year-end.

b) Basis of consolidation

f) Investments

The Dulwich Estate is not required to prepare consolidated financial statements in accordance with the Charities Act. These statements include summary financial information for its two subsidiaries Alleyn Road 102 Limited and Dulwich Estate Services Limited is provided in note 10(b) but they are not consolidated on the basis of materiality.

Investments are stated at market value in accordance with the Statement of Recommended Practice. The Statement of Financial Activities includes those unrealised gains and losses arising from the revaluation of the investment portfolio during the year and does not distinguish between the valuation

adjustments relating to sales and those relating to continued holdings as they are together treated as changes in the value of the investment portfolio.

g) Income

The Statement of Financial Activities is credited, on an accruals basis, with income from real estate, Tollgate receipts and with income earned from the investment of capital funds, and is charged with all expenses incidental to the maintenance and administration of the Estate. Rents are shown at the contracted level agreed and no account is taken of increases therein until renewal negotiations are completed. Rent free periods are accounted for in the period to which they apply.

h) Expenditure

Charitable activities represent amounts available for distribution to beneficiaries. Governance costs consist mainly of staff costs and audit and accountancy fees. Costs of raising funds comprise (in accordance with the terms of the Charity’s Scheme) all expenditure directly related to maintaining the Charity’s properties, the Tollgate, its investment portfolio and its share of the Scheme of Management Charge (note 7).

An analysis of Expenditure is detailed in note 6. Staff costs have been allocated across the activities based on an estimate of staff time.

i) Permanent endowment funds

These are the Property Valuation Fund and Capital Reinvestment Fund, which comprise the Charity’s endowment capital.

j) Restricted and designated funds

Designated Funds have been established by allocations from the Restricted Fund and are fully disclosed in note 14. The Board of Trustees reviews the amounts held in these Funds and where these are considered to be surplus to meet requirements, the balances are transferred back to the Restricted Fund.

k) Retirement Benefits

The Charity operates a defined contribution scheme for new employees. The assets are held separately from the charity in independently administered funds. Payments to the defined contribution scheme are charged as an expense as they fall due. The charity also participates in The Dulwich Estate Retirement Benefit Scheme.

Pension scheme assets are measured at a fair value in accordance with the FRS 102 fair value hierarchy. Pension scheme liabilities are measured using the projected unit credit method and are discounted at the current rate of return on a high-quality corporate bond of equivalent terms and currency to the liability. Annually the company engages independent actuaries to calculate the obligation.

The balance recognised in the Balance Sheet in respect of the defined benefit pension scheme is the present value of the defined benefit obligation at the end of the reporting date, less the fair value of the scheme assets at the reporting date.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. These amounts together with the return on scheme assets, less amounts included in net interest, are disclosed as ‘Remeasurement of net defined benefit liability.’ The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of scheme assets. This is recognised in profit or loss as ‘Finance income/expenditure’.

Pension scheme surpluses, to the extent that they are considered recoverable, or deficits are recognised in full and presented within provisions.

l) Significant judgements and estimates

In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Fair value of real estate

The properties of the Estate are included in the financial statements at valuation. These are considered to be critical accounting estimates in view of the amounts involved and the judgements applied in their valuation. The valuations were prepared in accordance with the requirements of RICS Global Standards

Defined benefit pension scheme

The Charity has obligations to pay pension benefits to certain employees. The cost of these benefits and the present value of the obligation depend on a number of factors, including; life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. The Trustees estimate these factors in determining the net pension obligation in the balance sheet. The assumptions reflect historical experience and current trends. See note 18 for the disclosures relating to the defined benefit scheme.

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33

The Dulwich Estate

Notes To The Financial Statements Year Ended 31 March 2021

The Dulwich Estate
Notes To The Financial Statements
Year Ended 31 March 2021		 Group and Charity d Charity
2. REAL ESTATE INCOME
Rents from residential lettings
Rents from commercial lettings
Ground rents and wayleaves
Other income
3. TOLLGATE INCOME & EXPENDITURE
Income
Less:
Depreciation
Expenditure
Group
4. DIVIDEND AND INTEREST INCOME
2021
2020
Dividend income
2,419
2,451
Deposit interest & other income
10
50
Less provision
-
-
2,429
2,501
5. STAFF COSTS
Salaries
Social security costs
Pension costs		 2021
2020
£ 000's
£ 000's
4,019
3,912
4,403
5,349
21
27
30
27
8,473
9,315
160
219
(5)
(3)
(142)
(151)
(147)
(154)
13
65
Charity
2021
2020
2,419
2,451
10
97
-
(23)
2,429
2,525
2021
2020
1,411
1,609
163
168
261
254
1,835
2,031		 2020
£ 000's
3,912
5,349
27
27
9,315
219
(3)
(151)
(154)
65
2,525
2020
1,609
168
254
2,031

Staff costs shown in note 6 are net of income arising on amounts recharged and include other staff related costs.

The average number of employees during the year was 31 (2020: 31).

The number of employees with gross emoluments over £60,000, including the value of benefits in kind, fell into the following bands:

2021 2020
No. No.
£60,001 - £70,000 3 2
£70,001 - £80,000 1 -
£80,001 - £90,000 1 1
£90,001 - £100,000 - 1
£110,001 - £120,000 1 1
£140,001 - £150,000 1 -
£150,001 - £160,000 - 1

Employer's pension contributions of £123,341 (2020: £121.975) were paid on behalf of the above staff. Three (2020: two) of the above employees were accruing benefits under the Defined Benefits Pension Scheme and four (2020: four) employees under the Defined Contribution Scheme (Note 18).

The key management personnel of the Charity, comprise the Trustees, the Chief Executive, the Director of Property, the Director of Finance, and the Principal Building Surveyor of The Dulwich Estate. The total employee benefits of the key management personnel of The Dulwich Estate were £541,838 (2020: £581,635).

The Dulwich Estate

Notes To The Financial Statements Year Ended 31 March 2021

6. EXPENDITURE

The Dulwich Estate
Notes To The Financial Statements
Year Ended 31 March 2021
6. EXPENDITURE
Charitable activities
Income Distribution to Beneficiaries
Governance costs
Staff costs
Auditor's fees - audit
Auditor's fees - other
Office expenditure
Raising funds
Real estate maintenance expenditure
Less: rechargeable costs
The Scheme of Management
Tollgate expenses
Investment management fees
Total cost of raising funds
Total expenditure
Real estate maintenance expenditure
Staff costs
Residential Property Repairs Fund
Commercial Property Repairs Fund
Rented property, rates, insurance and services
- irrecoverable expenditure
Roads and footpaths
Depreciation
Leasehold property expenditure
Estate Development Reserve
Estate Office Repairs Fund
Other direct costs
Architects' and surveyors' fees
Solicitors' and consultants' fees
Office expenditure
Other
Less:
Management charge on property maintenance costs
Administration charge on sale of Estate's property
Other fees		 Staff costs
Direct costs Depreciation
£ 000's
£ 000's
£ 000's
-
6,455
-
-
6,455
-
75
-
-
-
49
-
-
56
-
-
1
-
75
106
-
1,739
2,346
61
-
(172)
-
1,739
2,174
61
141
(95)
8
37
105
5
19
490
-
1,936
2,674
74
2,011
9,235
74
Restricted
Designated
£ 000's
£ 000's
1,739
-
-
487
-
45
280
-
58
-
61
-
104
-
-
124
-
38
307
-
338
-
337
-
228
-
3,452
694
(127)
-
(26)
-
(19)
-
3,280
694		 Total
2021
£ 000's
6,455
6,455
75
49
56
1
181
4,146
(172)
3,974
54
147
509
4,684
11,320
2021
£ 000's
1,739
487
45
280
58
61
104
124
38
307
338
337
228
4,146
(127)
(26)
(19)
3,974		 Total
2020
£ 000's
6,685
6,685
80
45
40
1
166
5,101
(198)
4,903
49
154
401
5,507
12,358
2020
£ 000's
1,860
853
142
472
24
54
90
301
58
263
434
391
159
5,101
(141)
(37)
(20)
4,903

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35

The Dulwich Estate

Notes To The Financial Statements Year Ended 31 March 2021

The Dulwich Estate
Notes To The Financial Statements
Year Ended 31 March 2021
7. THE SCHEME OF MANAGEMENT
Amenity Expenditure
Basis of Apportionment costs pro rata
Estimated recovery
Basic Expenditure
Basis of Apportionment costs pro rata
Estimated recovery
Net charge for the year to be borne by the Estate		 £ 000's
£ 000's
£ 000's
£ 000's
213
193
4
5
(163)
(149)
54
49
250
291
5
7
(255)
(298)
-
-
54
49
2021
2020
49

Under the Scheme of Management, a Charge is payable annually by enfranchised owners towards certain costs incurred in the maintenance and administration of the Estate.

2021
2020
8. REAL ESTATE
£ 000's
£ 000's
FREEHOLD PROPERTY ON THE DULWICH ESTATE
At 1 April
216,878
224,336
Property purchased and improved during year
1,263
876
Property sold during year
-
(3,567)
218,141
221,645
Surplus on revaluation
3,450
(4,767)
At 31 March
221,591
216,878
COMMERCIAL PROPERTY OFF THE DULWICH ESTATE
At 1 April
(315)
-
Property sold during year
-
-
(315)
-
Surplus on revaluation
(1,030)
(315)
At 31 March
(1,345)
(315)
SUMMARY OF REAL ESTATE
At 1 April
216,563
243,671
Add: cost of property purchased and improved during year
1,263
876
Less: book value of properties sold during year
-
(17,192)
Net surplus on revaluation
2,420
(5,082)
TOTAL REAL ESTATE HOLDINGS At 31 March
220,246
222,273		 2021
2020
£ 000's
£ 000's
216,878
221,045
1,263
734
-
(134)
218,141
221,645
3,450
(4,767)
221,591
216,878
5,395
19,335
-
(13,625)
5,395
5,710
(1,030)
(315)
4,365
5,395
222,273
240,380
1,263
734
-
(13,759)
2,420
(5,082)
225,956
222,273

The Dulwich Estate Notes To The Financial Statements Year Ended 31 March 2021

The Dulwich Estate
Notes To The Financial Statements
Year Ended 31 March 2021
8. REAL ESTATE (continued)
FREEHOLD PROPERTY ON THE DULWICH ESTATE
2021
2020
Tranche 1
83,211
83,211
Tranche 2
122,393
122,393
Tranche 3
10,540
10,540
216,878
216,878
REALISED GAIN ON PROPERTIES
2021
2020
Capital Receipts and proceeds from properties sold in year
1,286
27,494
Book cost of properties sold in year
-
(17,192)
Net realised gains on properties in year
1,286
10,302
9.(a) OPERATIONAL PROPERTY
2021
2020
£ 000's
£ 000's
The Old College, Dulwich
At 1 April
1,450
1,450
Revaluation in year
-
-
At 31 March
1,450
1,450
Group		 2021
2020
£ 000's
£ 000's
85,306
83,673
125,282
122,628
11,003
10,577
221,591
216,878
2021
2020
1,286
23,637
-
(13,759)
1,286
9,878
2021
2020
£ 000's
£ 000's
1,450
1,450
-
-
1,450
1,450
Charity
216,878
2020
23,637
(13,759)
9,878
2020
£ 000's
1,450
-
1,450

9 (b) INTANGIBLE AND OTHER TANGIBLE FIXED ASSETS

Cost:
At 1 April 2020
Additions in year
At 31 March 2021
Depreciation:
At 1 April 2020
Charge for year
At 31 March 2021
Net Book Value:
At 31 March 2021
At 1 April 2020		 Total
Intangible
£ 000's
93
161
254
49
31
80
174
44		 Furniture
and
Equipment
£ 000's
136
17
153
119
6
125
28
17		 Computer
Equipment
£ 000's
261
37
298
212
24
236
62
49		 Tollgate
Scheme of
Building &
Management
Equipment
Equipment
£ 000's
£ 000's
139
62
13
-
152
62
135
46
5
8
140
54
12
8
4
16		 Total
Tangible
£ 000's
598
67
665
512
43
555
110
86

The Estate's portfolio is split into three separate tranches for valuation purposes, with each tranche being valued once every three years on a rolling cycle in accordance with the requirements of the RICS Valuation - Global Standards and the other two tranches are subjected to a comprehensive desktop review using the same RICS standards. This year the full valuation was undertaken for Tranche I (2020: Tranche III) and desktop reviews were conducted for Tranches II and III (2020: I and II).

All valuations were prepared in accordance with the requirements of the RICS Valuation – Global Standards 2020, which incorporate the UK National Supplement effective 14th January 2019 and the IVSC International Valuation Standards (the ‘Red Book'); with the valuation being 'Fair Value' as defined in UK Generally Accepted Accounting Principles (UK GAAP), specifically FRS 102.

The valuers considered the ongoing impact of the Coronavirus pandemic and although the requirement to include a "Material Uncertainty" clause has been removed, there still remains significant uncertainty in the market at the valuation date and there is a very limited amount of comparable evidence post-dating the outbreak of the pandemic.

At 31 March 2021 the Charity had total commitments contracted but not provided for of £1,523,000 (2020: £Nil).

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37

2021 2020 £ £ 3 3

The Dulwich Estate

Notes To The Financial Statements Year Ended 31 March 2021

The Dulwich Estate
Notes To The Financial Statements
Year Ended 31 March 2021
10.(a) INVESTMENTS
Analysis of movement of investments
Market value At 1 April
Purchases
Sale proceeds
Net proceeds of currency hedging contracts
Net gain / (loss) on investments
Net gain / (loss) on currency hedging contracts
Market Value of investments at 31 March
Cash held in investment portfolio
Total investment portfolio value
Historical cost
Investments
UK Equities
Foreign Exchange Contracts
Overseas Equities
Total investments
Cash held in investment portfolio
Total investment portfolio value
10.(b) INVESTMENT IN SUBSIDIARY UNDERTAKINGS
i) Alleyn Road 102 Limited		 2021
£ 000's
87,118
40,012
(38,059)
(2,409)
30,199
2,409
119,270
1,295
120,565
94,711
21,707
2
97,561
119,270
1,295
120,565
2021
£
100		 2020
£ 000's
75,222
56,595
(35,547)
1,994
(9,152)
(1,994)
87,118
1,307
88,425
88,259
16,291
407
70,420
87,118
1,307
88,425
2020
£
100

The Dulwich Estate owns the entire issued share capital of the Company which comprises 100 shares of £1. The Company was incorporated in England & Wales (Company No: 08350222) on 7 January 2013. The Company has no employees. Its principal activity was the development of 102 Alleyn Road, which was sold in the year. At 31 March 2021, the Company owed the Charity £312,079 which is included in the Balance Sheets of the Company and the Charity under current liabilities and current assets respectively. In addition, the Charity made a loan to the Company, which has a remaining balance of £328,132.

The Dulwich Estate, due to the protracted nature of the development, has provided £328,132 against the accrued interest due on the loans which will not be receivable in full.

The financial statements of the Company for the years ended 31 March 2021 and 31 March 2020 are summarised as follows:

follows:
Profit & loss account
Turnover
Impairment
Administration expenses
Loss
Balance Sheet
Fixed assets
Current assets
Less: creditors
Net liabilities
Called up share capital
Profit and loss account
Shareholder's funds		 2021
£
-
-
-
-
-
271,640
(640,212)
(368,572)
100
(368,672)
(368,572)		 2020
£
3,797
-
(20,233)
(16,436)
-
271,640
(640,212)
(368,572)
100
(368,672)
(368,572)

The Dulwich Estate Notes To The Financial Statements Year Ended 31 March 2021

10.(b) INVESTMENT IN SUBSIDIARY UNDERTAKINGS (continued)

ii) Dulwich Estate Services Limited

The Dulwich Estate owns the entire issued share capital of the Company which comprises 3 shares of £1. The Company was incorporated in England & Wales (Company No:03606623) on 30 July 1998 and commenced trading on 1 April 1999. The Company has no employees but the services of the Charity's staff are made available to it at a cost based on time spent. At 31 March 2021, the Company owed the Charity £55,798 (2020: £53,920) which is included in the Balance Sheets of the Company and the Charity under current liabilities and current assets respectively. The financial statements of the Company for the years ended 31 March 2021 and 31 March 2020, are summarised as follows:

Profit & loss account
Turnover
Administration expenses
Profit
Gift Aid to The Dulwich Estate
Retained (loss)/profit for the year
Balance Sheet
Current assets
Less: creditors
Net assets
Shareholder's funds
2021
2020
11. DEBTORS
£ 000's
£ 000's
Rents, insurance and maintenance charges
1,460
1,337
Property repair contracts
262
195
Sale of Estate property
11
11
Investment income
101
61
Christ's Chapel of God's Gift at Dulwich Charity
38
1
Alleyn Road 102 Limited
-
-
Dulwich Estate Services Limited
56
54
Sundry accounts
278
277
2,206
1,936
2021
2020
12. CASH AT BANK, ON DEPOSIT AND IN HAND
£ 000's
£ 000's
Cash at bank and in hand
293
278
Deposit accounts
9,349
9,414
9,642
9,692
Special deposits
404
473
10,046
10,165
Group
Group		 2021
2020
£
£
2,829
5,234
(3,698)
(4,327)
(869)
907
-
(37)
(869)
870
62,371
59,898
(62,330)
(58,988)
41
910
41
910
2021
2020
£ 000's
£ 000's
1,460
1,337
262
195
11
11
101
61
38
1
312
308
56
54
277
277
2,517
2,244
2021
2020
£ 000's
£ 000's
21
7
9,349
9,414
9,370
9,421
404
473
9,774
9,894
Charity
Charity		 2020
£
5,234
(4,327)
907
(37)
870
59,898
(58,988)
910
910

Special deposits are those segregated accounts in which rental deposits and service charges received in advance of expenditure are held. The interest earned on these deposits is applied for the benefit of the appropriate tenants/householders.

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39

The Dulwich Estate

Notes To The Financial Statements Year Ended 31 March 2021

2021
£ 000's
13. CREDITORS
Rents, maintenance charges and insurance due and received in advance
540
Property repair contracts
44
Trade creditors
784
Taxation & Social Security
21
Scheme of Management
67
Sundry accruals
1,212
Christ's Chapel of God's Gift at Dulwich Charity
-
The Dulwich Almshouse Charity
69
Sundry creditors
699
Balance of Income Distribution payable to Beneficiaries
2,261
5,697
14. FUNDS
At
Income
Expenditure
1 April
2020
£ 000's
£ 000's
£ 000's
£ 000's
PERMANENT ENDOWMENT
Property Valuation Fund
223,723
-
-
(24)
Capital Reinvestment Fund
94,213
-
-
(172)
317,936
-
-
(196)
DESIGNATED
Residential Property Repairs
71
-
(487)
680
Commercial Property Repairs
192
-
(45)
(80)
Estate Office Repairs
49
-
(38)
10
Estate Development Reserve
428
-
(124)
(4)
740
-
(694)
606
RESTRICTED
759
11,062
(10,626)
(410)
TOTAL FUNDS
319,435
11,062
(11,320)
0
Transfers
between
funds		 2020
£ 000's
1,071
144
198
74
13
1,032
-
40
851
2,177
5,600
Gain On
Investment
Assets
£ 000's
3,706
32,608
36,314
-
-
-
-
-
-
36,314		 2021
£ 000's
540
44
784
21
67
1,212
-
69
697
2,261
5,695
Actuarial
Loss
£ 000's
-
-
-
-
-
-
-
-
(44)
(44)		 2020
£ 000's
1,071
144
198
74
13
1,032
-
40
845
2,177
5,594
At
31 March
2021
£ 000's
227,405
126,649
354,054
264
67
21
300
652
741
355,447

The Dulwich Estate Notes To The Financial Statements Year Ended 31 March 2021

14. FUNDS (continued)

Property Valuation Fund

This fund represents the value of the Charity's property and includes the surpluses arising on revaluation plus the cost of additions and improvements.

Capital Reinvestment Fund

This represents the proceeds from sales of the Charity's properties which have been used to purchase investments, the surplus or deficit arising on the revaluation of these investments less the capital distribution to beneficiaries made during the year.

DESIGNATED FUNDS

In accordance with clause 3. (2) of the Scheme dated 31 July 1995, the Board of Trustees has established designated funds, by annual transfers from the Restricted Fund, to meet the future costs of managing, maintaining, developing and improving land and maintaining, repairing, improving and rebuilding the buildings thereon.

Real Estate Repair Funds

These funds exist to meet the costs of cyclical repairs and maintenance to the Charity's residential and commercial property, and its Estate Office. Money is expended from these Funds annually. During the year £680,000 was allocated from the Restricted Fund to the Residential Property Repair Fund and £10,000 to the Estate Office Repair Fund. The sum of £80,000 was transferred from the Commercial Property Repair Fund to the Restricted Fund.

Estate Development Reserve

The Estate Development Reserve is maintained for the purpose of development of the real estate of the Charity. During the year, costs of £123,994 were charged to this account and £200,000 was transferred to the Restricted Fund. The sum of £196,259 was transferred from the Capital Reinvestment Fund, representing project costs previously expensed.

RESTRICTED FUND

This fund represents the balance of the unspent income of the Charity after defraying all costs of managing the Charity and maintaining its property (including net transfers to Designated Funds) and making annual payments to the Beneficiaries (Note 16). The balance on the fund comprises the accumulated pension asset at 31 March 2021 calculated on the basis required by FRS102, plus the book value of intangible and other tangible fixed assets, all of which are not distributable to beneficiaries.

PERMANENT ENDOWMENT FUNDS

Permanent Endowment capital must be maintained; only the income derived thereon may be expended. Under the Scheme Number 2 of 5 dated 31 July 1995, approved by the Charity Commission, the Board of Trustees has the power to distribute, at its discretion, capital to Schools Beneficiaries in the percentages prescribed in the Scheme. The transfer out of the Capital Reinvestment Fund transfer during the year of £172,477 comprises a transfer to the Property Valuation Fund in respect of the cost of property purchased and improved during the year of £1,262,507 (2020 - £734,333 - Note 8) less proceeds from sale of properties of £1,286,289 (2020 - £23,637,376 - Note 8) and a transfer of £196,259 (2020 - £Nil) to the Estate Development Reserve representing expenditure on projects previously expensed.

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41

The Dulwich Estate Notes To The Financial Statements Year Ended 31 March 2021

The Dulwich Estate
Notes To The Financial Statements
Year Ended 31 March 2021
15. ANALYSIS OF NET ASSETS BETWEEN FUNDS
2021
Operational property
Other tangible fixed assets
Intangible fixed assets
Real estate
Investments
Pension asset
Debtors
Money Market Funds
Cash at Bank
Creditors
2020
Operational property
Other tangible fixed assets
Intangible fixed assets
Real estate
Investments
Pension asset
Debtors
Money Market Funds
Cash at Bank
Creditors
16 INCOME DISTRIBUTION TO BENEFICIARIES
Beneficiary
The Dulwich Almshouse Charity
Christ's Chapel of God's Gift at Dulwich Charity
Dulwich College
Alleyn's School
James Allen's Girls' School
The Central Foundation Schools of London
St Olave's and St Saviour's Schools Foundation
Total Distribution		 Designated
Funds
£ 000's
-
-
-
-
-
-
-
-
652
-
652
-
-
-
-
-
-
-
-
740
-
740		 Restricted
Fund
£ 000's
-
110
174
-
-
423
-
-
34
-
741
-
86
44
-
-
440
-
-
189
-
759
Percentage
Share of
Remainder
36.173%
26.542%
23.114%
10.923%
3.248%
100%		 Permanent
Endowment
Funds
£ 000's
1,450
-
-
225,956
120,565
-
2,517
173
9,088
(5,695)
354,054
1,450
-
-
222,273
88,425
-
2,244
173
8,965
(5,594)
317,936
2021
Total
£ 000's
110
30
140
2,284
1,676
1,460
690
205
6,455		 Total
£ 000's
1,450
110
174
225,956
120,565
423
2,517
173
9,774
(5,695)
355,447
1,450
86
44
222,273
88,425
440
2,244
173
9,894
(5,594)
319,435
2020
Total
£ 000's
110
30
140
2,366
1,738
1,514
715
212
6,685

The Dulwich Estate Notes To The Financial Statements Year Ended 31 March 2021

17. RELATED PARTY TRANSACTIONS

As explained in the Report of the Trustees, The Dulwich Almshouse and Christ's Chapel of God's Gift at Dulwich are connected charities of The Dulwich Estate. In addition to the distribution made to these (Note 16), The Dulwich Estate's staff provided services to them at a gross cost, including VAT, for the year of £25,540 (2020: £25,540) and £14,484 (2020: £14,484) respectively. The Dulwich Almshouse Charity leased two properties from The Dulwich Estate, one to house its Warden, at a cost of £21,840 (2020: £21,420), and The Old Grammar school for £5,000 (2020: £2,268).

18. PENSION SCHEMES

Defined Contribution Scheme

On 1 February 2004, The Dulwich Estate opened a contributory defined contribution, Group Personal Pension Scheme. Membership of the Scheme is available to all qualifying employees joining The Dulwich Estate after 1 March 2003. The Scheme meets the requirements of a stakeholder pension scheme. Pension contributions paid by The Dulwich Estate, as employer, for the year were £137,334 (2020: £131,456).

Death in Service Benefits Since 1 April 2008, lump sum Death in Service benefits are provided through a separate scheme.

Defined Benefits Scheme

The Dulwich Estate also operates a contributory, defined benefits pension scheme which was open to all qualifying employees until 28 February 2003. The Scheme, which was contracted out under the terms of the Social Security Pensions Act 1975 until April 2016, is administered by trustees and its assets are held independently from those of the Charity. Contributions are paid to the scheme in accordance with the recommendations of the Scheme actuary.

During the year ended 31 March 2019, the Scheme Actuary carried out the triennial actuarial valuation as at 1 April 2018. This disclosed a Scheme deficit in liabilities over assets of £74,000. The Trustees' policy on funding the scheme is to meet the cost of benefits as they accrue, and therefore the Charity increased the contribution it pays as of 1 January 2019 to 44.6% (38.6%) of annual pensionable salary in respect of future service and spouses' death in service benefits. The Charity made a one off payment of £74,000 in April 2019 to eliminate the Scheme deficit. The next triennial actuarial valuation will be carried out at 1 April 2021.

Under the terms of the Charity's governing Scheme, it is obliged to distribute its net income to its Beneficiaries. The annual payments to Christ's Chapel Charity and to The Dulwich Almshouse Charity are fixed in accordance with the rules of the Scheme. The distribution to each of the School Beneficiaries is also determined by the Scheme: the percentages paid to The Central Foundation Schools of London and to St Olave's and St Saviour's Schools Foundation are fixed as shown above, with the Dulwich Schools receiving the balance (85.829%) being apportioned between them in accordance with the average numbers of pupils attending each school during the preceding three years.

During the year, actual payments to the School Beneficiaries totalled £6,231,356 (2020: £6,856,026).

42 The Dulwich Estate Annual Report 2021

The Dulwich Estate Annual Report 2021

43

The Dulwich Estate Notes To The Financial Statements Year Ended 31 March 2021

18. PENSION SCHEMES (continued)

FRS102: The actuarial valuation was updated to the accounting date in accordance with FRS102 by the Scheme Actuary. Allowance was made for benefit accrual, expected investment returns, actual contributions and cashflows, and the results adjusted to reflect the assumptions at the reporting date.

The estimated amount of total employer contributions expected to be paid to the Scheme during the year to 31 March 2022 is £104,000. In addition, insurance premiums are paid to the separate death in service scheme.

The following table sets out the key FRS102 assumptions used for the Scheme.

Assumptions 2021 2020
% p.a. % p.a.
Price inflation 3.4 2.9
Discount rate 2.6 1.9
Pension increases (LPI) 2.0 2.2
General salary increases 2.6 1.9

Mortality - pre and post retirement is based on S3PxA_L tables with CMI 2019 (2020 - CMA 2018) improvements with a 1% long-term trend rate:

long-term trend rate:
2021 2020
Years Years
Current pensioners age 65 - males 23.1 23.0
Current pensioners age 65 - females 24.6 24.4
Future pensioners (currently 45) - males 24.0 23.9
Future pensioners (currently 45) - females 25.7 25.5

The amount included in the Balance Sheet arising from

The Dulwich Estate's obligations in respect of the Scheme is as follows:

The amount included in the Balance Sheet arising from
The Dulwich Estate's obligations in respect of the Scheme is as follows:		 2021 2020
Balance Sheet
Fair value of plan assets
Present value of funded obligations
Net defined benefit liability
Balance Sheet Limitation
Gross pension asset
The following amounts have been allocated across
the Expenditure categories of the SOFA:
Employer's part of current service cost
Employer's part of past service cost
Interest cost
Settlements
Administration costs incurred during the period
Total pension expense
The following amounts have been recognised in the
the Gains/(Losses) category of the SOFA:
Actuarial (loss)/gain on plan assets
Actuarial (loss)/gain on defined benefit obligation
Total (loss)/gain
Effect of limit on surplus recognised
Total (loss)/gain recognised on the SOFA
£ 000's
7,722
(6,761)
961
(538)
423
2021
£ 000's
91
-
(10)
-
64
145
2021
£ 000's
1,245
(751)
494
(538)
(44)
£ 000's
6,216
(5,776)
440
-
440
2020
£ 000's
93
-
(15)
16
36
130
2020
£ 000's
(394)
(45)
(439)
251
(188)

The Dulwich Estate Notes To The Financial Statements Year Ended 31 March 2021

The Dulwich Estate
Notes To The Financial Statements
Year Ended 31 March 2021
18. PENSION SCHEMES (continued)
The current allocation of the Scheme's assets is as follows:
Equity instruments
Debt instruments
Property
Cash
Changes in the present value of the Scheme liabilities are as follows:
Opening present value of Scheme liabilities
Interest Cost
Contributions from Scheme members
Service Cost
Actuarial gain/(loss)
Benefits Paid
Settlements
Closing present value of Scheme liabilities
Changes in the fair value of the Scheme assets are as follows:
Opening fair value of the Scheme assets
Interest Income
Actuarial gain / (loss)
Contributions by the Employer
Contributions by Scheme members
Benefits paid
Non Investment Expenses
Settlements
Closing fair value of Scheme assets		 2021
% p.a.
41
42
4
13
100
2021
£ 000's
5,776
128
15
91
751
-
-
6,761
2021
£ 000's
6,216
138
1,245
172
15
-
(64)
-
7,722		 2020
% p.a.
41
49
4
7
100
2020
£ 000's
5,535
139
12
93
45
(6)
(42)
5,776
2020
£ 000's
6,322
160
(394)
216
12
(6)
(36)
(58)
6,216

The actual return on the Scheme's assets during the year to 31 March 2021 was a gain of £1,383,000 (2020: loss of £234,000).

Fair value of Scheme assets
Present value of Scheme liabilities
Gross pension asset
Experience adjustments on Scheme assets
Amount of gain/(loss)
Percentage of Scheme assets
Experience adjustments on Scheme liabilities
Amount of (loss)/gain
Percentage of present value of Scheme liabilities		 2021
2020
2019
£ 000's
£ 000's
£ 000's
7,722
6,216
6,322
(6,761)
(5,776)
(5,535)
961
440
787
2021
2020
2019
£ 000's
£ 000's
£ 000's
1,245
(394)
-
16.1%
(6.3%)
5.0%
(72)
40
135
(1.1%)
0.7%
2.4%

44 The Dulwich Estate Annual Report 2021

The Dulwich Estate Annual Report 2021

45

The Dulwich Estate Notes To The Financial Statements Year Ended 31 March 2021

19. TRUSTEES

All Trustees give their time freely and receive no remuneration for their services. No Trustee received any reimbursement of costs . Some Trustees live in Dulwich and, as freeholders of property on the Estate, are subject to the Scheme of Management (Note 7). These accordingly pay the appropriate Charge as determined by the Council Tax band applicable to the property. As permitted under the Scheme governing the Charity, a Trustee Indemnity Insurance policy has been effected at a cost of £1,220 (2020: £1,220).

Note
20. NOTES TO THE CASH FLOW STATEMENT
a) Returns on investments
Interest received
Dividends received
Investment & deposit income
b) Capital receipts/(expenditure)
Sales of land & buildings
8
Improvements to properties
8
Purchases of fixed assets
9
Purchases of investments
10
Sales of investments
10
Net proceeds / (cost) of currency hedging
10
c) Analysis of Change in Net Funds
Cash at bank, on deposit and in hand
12
Cash held in investment portfolio
10
Money Market Funds		 At 1 April
2020
£ 000's
9,894
1,307
173
11,374		 2021
£ 000's
10
2,380
2,390
1,286
(1,263)
(228)
(40,012)
38,059
2,409
251
Cashflows
£ 000's
(120)
(12)
-
(132)		 2020
£ 000's
50
2,454
2,504
27,494
(876)
(73)
(56,595)
35,547
(1,994)
3,503
At 31 March
2021
£ 000's
9,774
1,295
173
11,242

The Dulwich Estate

Notes To The Financial Statements Year Ended 31 March 2021

21. ANALYSIS OF INCOME AND EXPENDITURE BY FUND

2021
Income:
Real estate income
Tollgate receipts
Investment income
Expenditure:
Raising funds
Real estate maintenance expenditure
The Scheme of Management
Tollgate expenses
Investment management fees
Charitable activities
Income distribution to Beneficiaries
Governance costs
Net income / (expenditure)
2020
Income:
Real estate income
Tollgate receipts
Investment income
Expenditure:
Raising funds
Real estate maintenance expenditure
The Scheme of Management
Tollgate expenses
Investment management fees
Charitable activities
Income distribution to Beneficiaries
Governance costs
Net income / (expenditure)		 Restricted
£ 000's
8,473
160
2,429
(3,280)
(54)
(147)
(509)
(6,455)
(181)
436
Restricted
£ 000's
9,315
219
2,525
(3,549)
(49)
(154)
(401)
(6,685)
(166)
1,055		 Designated
£ 000's
-
-
-
(694)
-
-
-
-
-
(694)
Designated
£ 000's
-
-
-
(1,354)
-
-
-
-
-
(1,354)		 Endowment
£ 000's
-
-
-
-
-
-
-
-
-
-
Endowment
£ 000's
-
-
-
-
-
-
-
-
-
-		 Total
£ 000's
8,473
160
2,429
(3,974)
(54)
(147)
(509)
(6,455)
(181)
(258)
Total
£ 000's
9,315
219
2,525
(4,903)
(49)
(154)
(401)
(6,685)
(166)
(299)

46 The Dulwich Estate Annual Report 2021

The Dulwich Estate Annual Report 2021 47

Thanks to all the photographers who have provided images including: Alleyn’s School, Dulwich College, JAGS, St Olave’s School, Fergus Burnett

The Old College, Gallery Road, thedulwichestate.org.uk Dulwich, London SE21 7AE Tel: 0208 299 1000

50 The Dulwich Estate Annual Report 2021