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2023-03-31-accounts

ESTATE

Contents

Board of Trustees 04
Chair’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
2023 fnancial positon and performance 17
Our history and background 18
Trustees’ report 20 - 23
2022 - 2023 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 2023

3

Meet the Estate Board of 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:

Dianne Barratt

Dr Irene Bishop

Pamela Dusu

Dami Ayeko

Rosemarie Jones

Ben Kottler

Helen Freeman

Howard Kerr

Jane Marshall

Penny King

Segun Osuntokun

Stephen Parry

Richard Pinckard

Caroline Price

Chair’s statement

In one capacity or another, I have been involved with the Estate and its beneficiary partners for nearly 30 years. For over 400 years The Dulwich Estate has a history of supporting education, housing for older people, and providing a place for worship. I am delighted to be part of it – supporting a hard-working and talented team.

The seven schools which make up the Foundation family have collaborated this year on new initiatives, including leadership training for students. Representatives from each school undertook a number of consultation and training exercises in order to build their skills and confidence in a young leadership capacity. It was moving to hear from these students at the annual beneficiary meeting at the end of 2022. They spoke powerfully about their experiences: of moving out of their comfort zones; putting themselves forward for development; and learning from their peers.

I was delighted also to hear from a group of impressive pupils early in 2023 at the launch of the inaugural Edward Alleyn Award. The Estate is supporting this award which is made to those who have demonstrated Alleynian values of philanthropy, creativity and enterprise over the course of the school year. Those receiving the awards shared their stories of resilience, initiative and community participation. I was again reminded of the combined strength of beneficiary partners in nurturing young talent.

I have dedicated most of my life to education and I am pleased to be able to continue this passion, more indirectly, through my work at The Dulwich Estate, where I took over as Chair of Trustees at the start of 2023.

The Estate continues its major work of ensuring careful stewardship of its land and property. It is a responsible landlord, which strives to operate to the highest standards and is committed to continual improvement.

In the past year it ran a consultation on planned improvements to the north end of Dulwich Village; maintained and upgraded a large number of properties; planted many new trees, looked after ancient woodland and overhauled its maintenance of shared amenity areas, in the interests of bio-diversity and the environment. It upgraded elements of the Chapel and has submitted plans to modernise the Almshouse accommodation. It continues to run the Scheme of Management – ensuring that local development is carefully considered within its wider environment.

Additionally, the Estate is committed to playing an active part in the wider community, whether through public engagement in nature or by supporting and promoting social events or common Foundation values.

I greatly look forward to working with all stakeholders during my tenure, helping to ensure that the Estate continues to evolve, support and deliver.

Dr Irene Bishop, Chair of Trustees

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Chief Executive’s foreword

But we are all too aware of the need to constantly review our practices and ensure we are doing everything we can to look after our natural heritage by reducing emissions and encouraging biodiversity.

Our sustainability programme for 2022-2023 set out priority work across four areas. They are:

During the year we commenced some of these long-term programmes of work and will continue to update on progress via our website. Across Estate holdings we are carrying out property upgrades to improve EPC ratings. And within the Scheme of management we have published guidance for homeowners on retrofitting Dulwich stock to bring homes up to more modern environmental standards.

In 2022 we have placed a particular focus on environmental issues, alongside all the other aspect of the Estate’s work. The Estate has always prioritised and protected the natural habitat, ancient trees and woodland, as well as shared amenity areas – making Dulwich a spectacular green haven in an urban setting. It is a central part of our stewarding role, and one we are proud of.

When it comes to the fourth workstream - our ‘re-wilding’ strategy, there is much to do. We wish to increase green areas, with the objective of connecting them. This involves growing our tree canopy resource so that it covers a greater area, providing significant wildlife, health and amenity benefits. This year we changed the management of grassed and shrub areas to a more selective and less frequent basis, depending on the individual site constraints like erosion, damage, access, utilities, prominence, heritage, wildlife and landscape value (woods, hedgerows, ditches, verges, shrub beds, formal lawns).

We also planted 112 standard size trees across 40 residential estates and grounds maintenance areas. In this we were supported by the Mayor’s Urban Tree Challenge and Groundwork. Next year 125 square meters of flower meadow and 180 linear metres of hedging will be planted, as well as 120 trees across 24 sites, including those where replacements are required for trees removed due to safety concerns. There are plans for more sites to be included over the next three years, including the Old Burial Ground, Grange Lane hedgerows, Low Cross Wood Lane and Rock Hill.

With our long-term partners London Wildlife Trust, we have continued to collaborate and manage Dulwich Woods and at the end of the year were delighted that a National Heritage Award was made to support a partnership including Southwark Council to carry on this work with the involvement of a wide range of volunteer groups.

I am grateful to all involved in this work and look forward to further innovations in the year ahead. It will help to secure a greener future for generations to come. 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

Chair

Irene Bishop, CBE, BEd, MA, LLD

Dulwich College

Royal Institution of Chartered Surveyors

Deputy Chair

Rosemarie Jones, MRICS Dami Ayeko Dianne Barratt Pamela Dusu, MA

Central Foundation Schools London Alleyn’s School

James Allen’s Girls’ School Co-optative

Helen Freeman (from 1.06.2021) Howard Kerr, MBA (from 01.01.2023)

Dulwich College Co-optative Co-optative

Penny King, LLB Ben Kottler, BA

James Allen’s Girls’ School

Jane Marshall (from 1.12.2021)

Segun Osuntokun, BA

Archbishop of Canterbury St. Olave’s and St. Saviour’s Schools Foundation Alleyn’s School

Stephen Parry (from 1.08.2021) Richard Pinckard, BSc (Econ), FCA Caroline Price, LLB (Hons) ACA

The Dulwich Almshouse Charity

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, 6th Floor, 9 Appold Street, London EC2A 2AP 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 2023

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Property maintenance

Xxxxxxx

Property development

In 2022 we welcomed some new businesses in to the area and we hope that they flourish through the services and goods they provide to local residents. At 27 Dulwich Village in the North Parade, lifestyle home design shop Maison Curate opened. In West Dulwich Hound & Co dog groomers opened at 92 Park Hall Road. Finally Il Sovrano opened at at 12 Croxted Road. This is an Italian café & deli with home-baked focaccia bread on the premises.

We said goodbye to Julie Lowe one of our longest standing tenants, who ran Biff shoe shop in the Village for nearly 30 years, and has set off on new adventures. Unfortunately, Walter’s restaurant on Croxted Road closed its doors due to rising food, staffing and utility costs. It shows the challenges small businesses continue to face in the current economic climate.

Estate retail voids are below 5% - this is keeping a vibrant high street landscape. Dulwich remains a popular destination. We have carried out a community consultation for public realm improvements to the pedestrian area in the North Parade, introducing a new surface treatment,

seating, and more trees and planting. The Estate hopes to carry out this work soon, subject to obtaining planning permission.

Our work to plan for the refurbishment of Edward Alleyn House to bring the accommodation for its elderly residents up to modern standards, including lift installation, improved comfort accommodation and access, continues. The Estate, on behalf of the Dulwich Almshouse Charity, has submitted a second pre-application to the Southwark planning department during 2023 and are hoping for a positive response to the proposals.

At the Scheme of Management there was a drop in applications, back in line with levels seen in the pre-Covid years. These applications have seen a move away from the popular home offices of recent years, towards new-builds. We produced a public information leaflet during the year to raise awareness of where the small annual Scheme charge funds are spent. In addition, a helpful leaflet entitled Home Energy Efficiency was produced to provide residents with details of work that can be undertaken without requiring a Scheme licence application.

As ever, we look forward to a busy year ahead, working hard to build good relationships with our residents, tenants, and beneficiaries.

Adrian Brace, Director of Property

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Renovation of Redemption Roasters
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During the year we have continued with the planned cycle of repair and maintenance of our residential leasehold and assured shorthold portfolio. This has included the completion of a window replacement scheme in Dekker Road, which will help achieve our aim of a minimum EPC rating of C for all AST properties, part of the Estate’s developing green plan. Further improvement work will continue in the coming year, as part of a review of our entire residential rented portfolio.

In addition, much of the year has again been taken up with health, safety and compliance requirements.

New systems are in place to monitor all aspects of the organisation’s health and safety operation, which includes compliance with new fire safety regulations post-Grenfell. Following extensive consultation with leaseholders, a full programme of fire safety work to the tower blocks has progressed and is expected to be completed by early 2024. The work is being carried out in conjunction with cyclical repairs and redecoration and is jointly funded by the Estate.

Following a lengthy consultation process with leaseholders, work to modernise the lifts in eight tower blocks is continuing. Four out of eight lifts have now been refurbished and work on the remaining four lifts is due to be completed by the end of 2023. The costs of this work will be spread over three years.

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.

“[This year we have been able to ensure 214 families are supported ] with bursary awards, families whose financial circumstances would have precluded their sons from joining the College.

This represents 14% of the pupil body and we will build on this with more deep bursaries (75% to 100% of fees) and some shallower bursaries.

This work is core business to ensure we are accessible to families from all backgrounds. Spending on bursaries has more than doubled since 2013 and it is our ambition to become a needs-blind school, open to pupils from all walks of life. Our community benefits from its rich diversity.

Our community action partnership work includes leading a choir for Dulwich Wood Primary School where 45 pupils performed at a Young Voices concert at the O2 Arena, and pupils joining us on campus for symposia, author talks, hockey training, and science and swimming lessons.

Dr Joe Spence

We thoroughly enjoy this engagement with pupils and staff from all the schools of the Southwark Schools’ Learning Partnership.

Master, Dulwich College

Helping train new physics, maths and languages teachers through our SCITT programme, and working alongside our peers in partnership schools, pupils and colleagues benefit from the sharing of best practice. ”

“ Spending on bursaries has more than doubled since 2013 and it is our ambition to become a needsblind school, open to pupils from all walks of life. ”

“ Events with Link Age Southwark and the Southwark Schools’ Learning Partnership, along with our continued support of Art History Link-Up, have provided deeply fulfilling opportunities to engage with a community we are so proud to represent. ”

“[Significant events change not only our experiences but our language; we find ] ourselves now marking history as ‘before the pandemic’, ‘during lockdown’ and, we very much hope, ‘now the pandemic is over’. The exceptional range and depth of opportunities in our lessons, co-curricular trips and activities here at JAGS very much suggests that is the case. Throughout these recent times of change, one aspect of life at our school has remained constant; our unwavering commitment to a forwardthinking and philanthropic approach to education.

Central to this vision is our transformational, life-changing bursary provision. This year, 142 pupils received bursaries, accounting for over 15% (circa 1 in 6) of the Senior School and including students displaced due to the Russian invasion of Ukraine.

The majority of our financially-assisted pupils are supported with more than 90% of fees, as well as the costs of uniform, travel, school trips and lunches.

Our regular events with Link Age Southwark and the Southwark Schools’ Learning Partnership, along with our continued support of Art History Link-Up, have provided deeply fulfilling opportunities to engage with a community we are so proud to represent. We have also been fortunate to celebrate 25 years of collaboration with the Southwark Community Education Charity through the ever-popular Saturday Literacy Scheme.

Alex Hutchinson

Head, JAGS

It was incredible to commemorate and reflect on the last quarter of a century which has seen around 1,000 Year 3 pupils from the surrounding area develop their reading, writing and public speaking skills.

The initiative has proved impactful for so long thanks to the commitment of our wonderful staff and students.

And it is our students who have repeatedly impressed us with their ingenious fundraising this year; raising over £14,000 for local and international charities. The students’ creativity and joy are a delight to share, along with their powers of persuasion as they happily cajole staff into assisting them with memorable events!

We have also thoroughly enjoyed our shared experiences as Foundation and Dulwich beneficiary schools.

Within this year, each of the seven Heads have visited one another to share experiences and good practice. When viewed in parallel with the recent student leadership event, it shows both the aspiration and empathy that can be found in schools with shared visions. ”

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Jamie Brownhill Headteacher, Central Foundation Boys’ School

“[Central Foundation is a state-funded boys’ school located ] in Shoreditch, 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 and its positive impact can be seen in a number of areas:

Music

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, which opened up various opportunities for the students including participation in national music festivals as well as local performances.

Sport

The grant helps fund specialist coaches in a number of sports such as football, rugby, cricket, athletics and table tennis attended by over 400 students each week.

Trips

The grant helps subsidise local and overseas school trips, for example, a ski trip to Austria and language trips to France and Spain.

Access to higher education

The grant helps fund a full-time mentor to coordinate the support programme for pupils with the potential to study at Oxford, Cambridge, and other leading universities. ”

Russell Walters

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

“[The two schools of the Foundation continue to thrive and help ] their students achieve excellent academic results. At St Saviour’s Girls’ School, whilst apparently back to normal following the pandemic, students continue to face very difficult home and personal circumstances.

The aftermath of Covid still shows an impact on behaviour and maturity for some students, which, alongside the impact of the cost of living, make for a difficult home and school learning environment.

The school has invested considerably in its pastoral care for many years and continues at a level which would not be sustainable without funding from The Dulwich Estate. The recently opened pastoral centre allows the school to provide an extra level of support. Development of the limited outside areas around the school is helping widen sports opportunities alongside giving students an enhanced area to socialise in.

At St Olave’s, the School’s Outreach team continues to deliver interactive and challenging sessions to Year 5 pupils at local primary schools, enabled by the funding made available through the Estate. Through a variety of activities, the pupils show not only enthusiasm but also eagerness to learn beyond the curriculum, developing resilience and determination, analytical and problem-solving skills, creativity and imagination. The All Weather Pitch came into use for the first time this year, widening the sports options the school can offer. Finally, the St Olave’s Inter-faith Iftar this year was on the theme of Mental Health. The evening saw talks from Jewish, Christian, Hindu and Muslim speakers, as well as a spoken-word performance from the renowned actor, Ashley Chin. Throughout the event were various student performances, including both Arabic and English Quran recitations. ”

“ We know that diversity enriches all our learning, and we continue to use our strong outreach programmes and growing local and international partnerships to reach more children. ”

“[It has been a memorable and historic year of transition from one monarch to another, ] from pandemic to post pandemic. Along with the whole nation, our year started with a reflection on a life very well-lived and the upholding of enduring human values. Our school values, respect, opportunity, courage and curiosity are all values embodied by the late Queen. They fuel who we are and what we do as a community. The opportunities we are able to provide children and young people, through our means-tested bursary programme, are one important facet of that. Almost 10% of Alleyn’s Senior School now receive transformational levels of means-tested support; two thirds of our bursary recipients benefit from fully funded places - financial support which also includes the provision of digital devices, lunches, uniforms, school trips and travel to and from school.

The Dulwich Estate supports 80 of these bursaries, providing life-changing opportunities and breadth of opportunity that bring benefits to our whole community. Current beneficiaries care about each other, they care about the world and their place in it, and they bring energy and conviction to everything they do.

Jane Lunnon

We know that diversity enriches all our learning, and we continue to use our strong outreach programmes and growing local and international partnerships to reach more children. This year for example, we have launched Alleyn’s Digital Academy which provides weekly sessions in tech entrepreneurship and coding for disadvantaged pupils from a wide range of schools. This sits alongside the Alleyn’s Music Academy and the Alleyn’s Sports Academy, all of which provide enriching opportunities for partnership and collaboration between our pupils and children from other schools. We are deeply grateful for the Estate’s support, which helps us continue our mission to make meaningful, positive differences in the school community and beyond and to live our values every single day. ”

Head, Alleyn’s School

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“ Our students value and benefit from the ‘extras’ we are able to provide as beneficiaries of The Dulwich Estate, thus the funding and the partnership we enjoy as part of the foundation is crucial to the success of our school. ”

“[The Students at CFGS receive a high quality education that aims to ] transform their lives. Funding from The Dulwich Estate enables us to run projects that support this vision. Given the challenges schools face in a post-Covid landscape, coupled with the additional hurdles so many of our students and their families are contending with, our vision is integral to all we do.

Our donation has been utilised to support our students academically through targeted mentoring, tuition and catch-up support across key stage 3 via our Learning Lounge, and at key stages 4 and 5 through our two Hubs. We have also continued to deploy The Access Project where students in Years 10 to 13 are mentored and supported by a team of business mentors.

The funding has also enabled us to extend our in-school counselling provision for students to meet the increase in demand. Additionally, we continue to broaden our students’ horizons and cultural capital by enabling them to participate in a wide range of experiences outside the classroom via our Central+ extra-curricular programme, and the provision of individual music lessons..

Carla Prince

Headteacher, Central Foundation Girls’ School

Our students value and benefit from the ‘extras’ we are able to provide as beneficiaries of The Dulwich Estate, thus the funding and the partnership we enjoy as part of the foundation is crucial to the success of our school. ”

Martyn Craddock Chair of Trustees, The Dulwich Almshouse Charity

Revd John Watson

“[It has been a quiet year for the Almshouse Charity, much to ] the relief of staff, trustees and residents. The journey towards re-developing the Edward Alleyn House almshouse into modern fully accessible homes takes slow and certain steps forward. Changing anything in such a sensitive and historic building takes time in planning, we are sure we will get there eventually.

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

“[Christ’s Chapel has been an essential part of the ] life of the Dulwich community for the last 400 years. In that time, it has watched over the lives of many in the Parish, a space both to reflect and to act, to mourn and to celebrate. In 2020, for the first time in its history, the Chapel stood still.

The financial backing of The Dulwich Estate is critical to enabling this to happen, but we do recognise the impact inflation has had on all construction projects. Even with the promise of better homes in years to come, a number of flats were given improvements, so that our residents can continue to live in comfort. Our scheme manager Barbara has continued to build up the range of activities and events residents take part in – both in Dulwich and further afield. Our homes remain in high demand and we have no difficulty finding new people to house.

For much of the next two years, its presence was uncertain. Services stopped, resumed, and stopped again; schools were unable to gather there together. So 2022-3 marked a tentative and joyful return. Weekly worship began again, with two services each Sunday where traditional liturgy and rich liturgical music are offered. The three Foundation schools joined for services, the Chapel marked Remembrance Sunday again and we held many weddings, baptisms and funerals. Music has also come back to the Chapel with organ recitals and lessons and lunchtime concerts.

The trustees have also been considering the long-term strategic position of the charity’s finances, particularly in view of the enhanced annual payments from The Dulwich Estate. As an independent charity, with an important heritage asset to maintain in perpetuity, it is important we have adequate reserves to be able to meet the inevitable times when the chimneys all need restoration and windows refurbishing. In close consultation with The Dulwich Estate team, we have therefore taken the decision to start to build these reserves properly. We will do this by maximising our income, and reducing expenditure where it is not a key objective directly related to looking after our residents, and the building they live in (e.g. discretionary charitable grants to external organisation). The Trustees are ever grateful to the staff of The Dulwich Estate for their ongoing support and services. ”

The Chapel continues to be at the heart of its community, offering afternoon openings for the public and taking part in the Dulwich Festival. The generosity of the Estate allows the Chapel to continue to grow, adapting to meet the needs of the community and providing a constant point in an era of rapid change. ”

“Our homes remain in high demand and we have no difficulty finding new people to house.”

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Who we are

275 5000 7 homes on means-tested schools supported student bursaries the Estate by the Estate, offering outstanding annually education supported at 12 beneficiary playing fields for schools community use 1

schools community use 1 historic chapel for worship and 79 community events 7.7m businesses distributed supporting the in 2022/23 local economy 40.5

40.5 acres of

allotments for community use

Estate size: 1500 acres

8 music tutors

16 sheltered

sport for extra support for 400 400 students students

accommodation flats in our Almshouse

2023 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 £7.7 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 Real estate
£3,366k maintenance expenditure
25.3% £4,243k
34.3%
Tollgate
Other operating costs
£170k
£255k
1.3%
£13.3m £12.4m 2%
Real estate income Tollgate management
£9,762k £175k
73.4% 1.4%
Distribution to beneficiaries
£7,686k
62.2%
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Income distribution to beneficiaries

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Christ’s Chapel of God’s Gift James Allen’s Girls’ School
£53k
£1,734k
0.7%
22.6%
The Dulwich Almshouse Charity
£135k Alleyn’s School
1.8% £7.7m £2,028k
distributed to 26.4%
St Olave’s and St Saviour’s
Schools Foundation beneficiaries
£243k Dulwich College
3.2% £2,674k
35.8%
The Central Foundation
Schools of London
£819k
10.6% Period covered: 1 April 2022 – 31 March 2023
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.

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.

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

Four ordinary meetings of the Board are held each year which consider

The scrutiny and oversight of the organisation is undertaken by the Board through Committees and Working Groups, which have terms of reference and authority as delegated by the Board, and usually meet three times a year making recommendations to the Board for approval. Extraordinary meetings of the Board, Committees and Working Groups are convened as necessary. The Committees and Working Groups deal with the following matters:

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

Trustees or nominees of the Board of Trustees are also appointed to 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.

Beneficiary meetings

Estate Trustees, senior managers and beneficiaries meet annually to hear about the Estate’s activities over the last year as well as the forecast for income distributions for the year ahead. The most recent meeting was in December 2022, where Beneficiaries also contributed to a presentation on the impacts and the work of the Foundation family, and how Estate funding supports organisational objectives and delivers public benefit.

Annual View

The Annual View, where the Estate’s trustees and senior employees visit one of the beneficiary schools to see at first hand its campus and activities, was held in October at Alleyn’s, and kindly hosted by Head Jane Lunnon.

The Chair 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 Working Groups and the Board.

Responsibilities of the Board of Trustees

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 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).

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21

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. In the last year the Risk Management Assessment Working Group, which reports to the Board, has increased the frequency of its meetings from twice a year to three times, to allow for more regular scrutiny of risk management activity. 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 war in Ukraine and persistently high inflation and other connected macro-economic forces will impact the income and expenditure of the Estate in ways which are difficult to anticipate. 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. Environmental and cyber risks have increasing prominence and are being closely monitored and managed.

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 2023 was £0.40 million (2022: £0.51m) 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 £0.30 million (2022: £0.72m). Total Funds also include Permanent Endowment Funds of £366.0 million (2022: £366.8m) of which £127.9 million (2022: £126.3m) is held in readily realisable listed investments.

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 financial 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 return on the MSCI All Country World Net Total Return Index. The Board believes that organisations that manage Environmental, Social and Governance (ESG) factors effectively are more likely to create value over the long-term than those that do not. As the Board works to fulfil its objective of increasing the annual income distribution to the Beneficiaries whilst maintaining the real value of net assets, it requires the Fund Manager to consider and integrate ESG risks and opportunities into its investment decisions. The Fund Manager must demonstrate to the Investment Committee that it monitors ESG factors and actively engages with companies to promote improved management of these factors.

Markets had a difficult year in 2022 and although the capital value of the portfolio increased in value by some 3% in the final quarter, the overall portfolio had only grown by £1.6 million during the year and at 31 March 2023 it stood at £127.9 million (2022: £126.3 million). The total return after fees on the portfolio, was 4.0% against the benchmark loss, excluding fees of 1.4% (2022: actual 7.1%, benchmark 12.4%). Investment income, boosted by a strong US dollar exchange rate against sterling, rose during the year to £3.37m (2022: £2.81m). The outlook for returns has not changed significantly in the last twelve months as the uncertainties caused by the war in Ukraine with their consequent and unpredictable impacts on the global economy, alongside expected low growth or even recession in many developed economies, means that the annual total rate of return on the investment portfolio over the next few years is likely to be lower than the 9.9% annualised total return over the last five years.

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 £9.76 million (2022: £9.00m) an increase of 8.4% (2022: 6.2%). Rents on residential lettings continued to be resilient during the year at £4.70 million (2022: £4.25m), an increase of 10.6% (2022: 5.8%) reflecting the success of the continued focus on rapid repair and re-letting of vacated properties and also the increased demand for good quality properties close to the local schools and the centre of London. Commercial letting income was £5.00 million (2022: £4.69m), an increase of 6.6% (2022: 6.6%), which reflects a consistently high level of occupancy and low level of default and waivers.

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 amenity of the Estate for the common benefit. The Scheme of Management Committee, composed of several Trustees, meets monthly to review and approve or refuse applications for development of land, alterations to properties or works to trees.

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 18 to the Financial Statements.

Looking forward

We have facilitated and collaborated on some important new initiatives this year. With our beneficiary schools we have been delighted to see young leadership skills being developed through a new Leadership Development programme, involving all seven schools. We heard powerfully from students on this initiative about the importance of community and inter-school relationship building, the value of soft skills and the benefit to self-confidence that participating has been.

We were also able to launch the inaugural Edward Alleyn Award, for students across the school community in all age groups. Schools nominated outstanding students who demonstrated the Alleynian values of philanthropy, creativity and enterprise and it was inspiring to hear about both individual and group achievements. We look forward to hearing more in the year ahead.

Beyond this, we continue with a planned modernisation of the whole Almshouse and have implemented a programme in the meantime, to bring facilities up to date. We continue to implement our environmental programme across the Estate and work with partners to maximise our impact here. In the year ahead we also look forward to further participating and supporting community initiatives that bring life to the area for everyone who works, visits and plays here.

Approved by the Board of Trustees of The Dulwich Estate on 24 June 2023 and signed on its behalf by:

Dr Irene Bishop, Chair of Trustees

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23

2022-2023 year in review

3 112 20% new businesses new trees of properties opening in the area planted refurbished

2 12 new environmental conservation partnerships sessions secured with almost 100 volunteers 125 sq meters of flower meadow 4 planted

2 lift refurbishments

1

new green strategy scoped and published

4 community woodland walks

3 orchard events with 580 people

181 Scheme of 180 Management applications meters of processed hedging planted

Auditor’s report

Opinion

We have audited the financial statements of The Dulwich Estate for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 the 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 contained within the annual report. 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.

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 course of 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 themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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 2023 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 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 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.

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

• Conclude on the appropriateness of the Trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. 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 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.

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

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.

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:

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of noncompliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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

6th Floor, 9 Appold Street London EC2A 2AP

Date: 30 August 2023

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 2023

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The Dulwich Estate Statement Of Financial Activities Year Ended 31 March 2023

The Dulwich Estate
Statement Of Financial Activities
Year Ended 31 March 2023
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 gain on investments
10
Realised gains on properties
8
Unrealised (loss)/gain on revaluation of freehold
properties
8, 9a
Net income / (expenditure)
Transfers between funds
14
Net (loss) / income after transfers
Other recognised gains and losses
Actuarial Loss on pension scheme
17
NET MOVEMENT IN FUNDS
Funds brought forward at 1 April
FUNDS CARRIED FORWARD
AT 31 MARCH
14		 2023
Restricted
Fund
£ 000's
9,762
170
3,366		 2023
Designated
Funds
£ 000's
-
-
-
-
1,390
-
-
-
-
-
1,390
(1,390)
-
-
-
(1,390)
980
(410)
-
(410)
715
305		 2023
Endowment
Funds
£ 000's
-
-
-
-
-
-
-
557
-
-
557
(557)
2,271
240
(2,729)
(775)
-
(775)
-
(775)
366,776
366,001		 2023
Total
Funds
£ 000's
9,762
170
3,366
13,298
5,633
89
175
557
7,686
166
14,306
(1,008)
2,271
240
(2,729)
(1,226)
-
(1,226)
(69)
(1,295)
368,004
366,709		 2022
Total
Funds
£ 000's
8,999
185
2,806
13,298 11,990
4,243
89
175
-
7,686
166		 4,416
56
161
585
7,207
141
12,359 12,566
939 (576)
-
-
-		 6,238
390
6,773
939 12,825
(980) -
(41) 12,825
(69) (268)
(110) 12,557
513 355,447
403 368,004

The Dulwich Estate Balance Sheet

Year Ended 31 March 2023

The Dulwich Estate
Balance Sheet
Year Ended 31 March 2023
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
17
NET ASSETS
FINANCED BY:
PERMANENT ENDOWMENT FUNDS
14
DESIGNATED FUNDS
14
RESTRICTED FUND
14		 £ 000's
£ 000's
£ 000's
£ 000's
234,262
235,135
1,050
1,250
83
94
266
257
127,884
126,257
363,545
362,993
4,905
3,040
177
173
6,716
7,629
11,798
10,842
(8,719)
(6,026)
3,079
4,816
85
195
366,709
368,004
366,001
366,776
305
715
403
513
366,709
368,004
2023
2022
362,993
4,816
195
368,004
366,776
715
513
368,004

Approved by the Incorporated Board of Trustees on 24 June 2023 and signed on its behalf on 30 August 2023 by:

Signed: Dr Irene Bishop (Chair) Rosemarie Jones (Deputy Chair) Countersigned: Simone Crofton (Chief Executive)

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

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29

The Dulwich Estate

Summary Restricted Fund Income And Expenditure Account Year Ended 31 March 2023

Note
Total Income
Total Expenditure excluding distribution to Beneficiaries
Add back Pension Scheme asset revaluation adjustment
Transfers to Designated Funds
Available for Distribution
16		 2023
2022
Total
Total
Funds
Funds
£ 000's
£ 000's
13,298
11,990
(4,673)
(3,798)
41
(40)
(980)
(945)
7,686
7,207

The Summary Restricted Fund Income and Expenditure Account is derived from the Statement of Financial Activities which, together with the notes to the accounts on pages 32 to 47, provide full information on the movements during the year on this and all the funds of the Charity.

The Dulwich Estate Cash Flow Statement Year Ended 31 March 2023

The Dulwich Estate
Cash Flow Statement
Year Ended 31 March 2023
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) in debtors
FRS102 pension fund adjustment
Increase 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 (Outflow) / inflow
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)		 2023
£ 000's
(1,008)
135
(1,785)
41
94
(3,366)
7,686
1,797
1,797
3,286
(1,744)
3,339
(5,086)
(1,747)
(1,747)
12,154
10,407		 2022
£ 000's
(576)
94
(449)
(40)
215
(2,806)
7,207
3,645
3,645
2,732
1,626
8,003
(7,091)
912
912
11,242
12,154

30 The Dulwich Estate Annual Report 2023

The Dulwich Estate Annual Report 2023 31

The Dulwich Estate Notes To The Financial Statements

Year Ended 31 March 2023

1. Accounting policies

and Dulwich Estate Services Limited and the net assets position at the balance sheet are set out in note 10B).

a) Basis of accounting

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 2) - (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.

c) Freehold properties of the Estate

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 capitalise improvements to properties, to revalue all of the Estate’s properties each year and to consider whether there has been any premanent diminution in value of any individual asset requiring adjustment in the accounts; thereby satisfying themselves that the portfolio is shown at fair value.

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.

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.

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 potential for a continued adverse 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 20%. The rates of amortisation used, charged on original cost, are an estimate of the useful life of the assets. 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

The charity has two wholly owned subsidiaries, Alleyn Road 102 Limited and Dulwich Estate Services Limited. The Charity has taken advantage of exemptions provided to it and not prepared group financial statements as the subsidiary undertakings are considered to be not material to the group. Therefore the financial statements present information about the individual charity and not the group. The results of Alleyn Road 102 Limited

f) Investments

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.

32 The Dulwich Estate Annual Report 2023

The Dulwich Estate Annual Report 2023 33

The Dulwich Estate

Notes To The Financial Statements

Year Ended 31 March 2023

The Dulwich Estate
Notes To The Financial Statements
Year Ended 31 March 2023		 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
2023
2022
Dividend income
3,267
2,803
Deposit interest & other income
99
3
3,366
2,806
5. STAFF COSTS
Salaries
Social security costs
Pension costs		 2023
2022
£ 000's
£ 000's
4,703
4,251
4,998
4,693
23
23
38
32
9,762
8,999
170
185
(4)
(5)
(171)
(156)
(175)
(161)
(5)
24
Charity
2023
2022
3,267
2,803
99
3
3,366
2,806
2023
2022
1,719
1,548
196
166
332
225
2,248
1,939		 2022
£ 000's
4,251
4,693
23
32
8,999
185
(5)
(156)
(161)
24
2,806
2022
1,548
166
225
1,939

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 33 (2022: 32).

The number of employees with gross emoluments over £60,000, including the value of benefits in

kind, fell into the following bands:

2023 2022
No. No.
£60,001 - £70,000 3 3
£70,001 - £80,000 1 1
£80,001 - £90,000 - 1
£90,001 - £100,000 1 1
£100,001 - £110,000 1 1
£110,001 - £120,000 - 1
£120,001 - £130,000 1 -
£130,001 - £140,000 1 -

Employer's pension contributions of £114,124 (2022: £114,160) were paid on behalf of the above staff. Two (2022: three) of

the above employees were accruing benefits under the Defined Benefits Pension Scheme and six (2022: five) employees under the Defined Contribution Scheme (Note 17).

The Dulwich Estate Notes To The Financial Statements Year Ended 31 March 2023
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

£ 000's
-
-
92
-
-
-
92
2,160
-
2,160
-
46
-
2,206
2,298		 Direct costs Depreciation
£ 000's
£ 000's
7,686
-
7,686
-
-
-
69
-
4
-
1
-
74
-
3,555
128
(210)
-
3,345
128
86
2
125
4
557
-
4,113
134
11,873
134
Restricted
Designated
£ 000's
£ 000's
2,160
-
-
1,097
-
65
480
-
8
-
128
-
228
-
-
183
-
45
480
-
494
-
456
-
19
-
4,453
1,390
(174)
-
(8)
-
(28)
-
4,243
1,390		 Total
2023
£ 000's
7,686
7,686
92
69
4
1
166
5,843
(210)
5,633
88
175
557
6,453
14,305
2023
£ 000's
2,160
1,097
65
480
8
128
228
183
45
480
494
456
19
5,843
(174)
(8)
(28)
5,633		 Total
2022
£ 000's
7,207
7,207
78
48
14
1
141
4,750
(334)
4,416
56
161
585
5,218
12,566
2022
£ 000's
1,809
744
113
434
20
86
148
120
(1)
410
408
367
92
4,750
(275)
(11)
(48)
4,416

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. The total employee benefits of the key management personnel of The Dulwich Estate were £589,640 (2022: £522,616).

34 The Dulwich Estate Annual Report 2023

The Dulwich Estate Annual Report 2023

35

The Dulwich Estate

Notes To The Financial Statements

Year Ended 31 March 2023

The Dulwich Estate
Notes To The Financial Statements
Year Ended 31 March 2023
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
351
222
5
3
(267)
(169)
89
56
333
333
4
5
(337)
(338)
-
-
89
56
2023
2022
56

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.

maintenance and administration of the Estate.
p		 y
2023
2022
8. REAL ESTATE
£ 000's
£ 000's
SUMMARY OF REAL ESTATE
At 1 April
875,822
435,652
Add: cost of property purchased and improved during year
1,790
2,368
Less: book value of properties sold during year
(134)
(162)
Net surplus on revaluation
(2,528)
6,973
TOTAL REAL ESTATE HOLDINGS At 31 March
874,950
444,831
REALISED GAIN ON PROPERTIES
216,878
Capital Receipts and proceeds from properties sold in year
374
Book cost of properties sold in year
(134)
Net realised gains on properties in year
240		 2023
£ 000's
235,135
1,790
(134)
(2,529)
234,262
374
(134)
240		 2022
£ 000's
225,956
2,368
(162)
6,973
235,135
552
(162)
390

The Dulwich Estate

Notes To The Financial Statements Year Ended 31 March 2023

9.(a) OPERATIONAL PROPERTY

£ 000's
The Old College, Dulwich
At 1 April 2022
-
Revaluation in year
-
At 31 March 2023
1,450		 2023
2022
£ 000's
£ 000's
1,250
1,450
(200)
(200)
1,050
1,250

9 (b) INTANGIBLE AND OTHER TANGIBLE FIXED ASSETS

Cost:
At 1 April 2022
Additions in year
At 31 March 2023
Depreciation:
At 1 April 2022
Charge for year
At 31 March 2023
Net Book Value:
At 31 March 2023
At 1 April 2022		 Total
Intangible
£ 000's
385
93
478
128
84
212
266
257		 Furniture
and
Equipment
£ 000's
161
13
174
133
11
144
30
28		 Computer
Equipment
£ 000's
315
28
343
266
34
300
43
49		 Tollgate
Scheme of
Building &
Management
Equipment
Equipment
£ 000's
£ 000's
157
62
(1)
-
156
62
145
57
4
2
149
59
7
3
12
5		 Total
Tangible
£ 000's
695
40
735
601
51
652
83
94

All valuations were prepared in accordance with the requirements of the RICS Valuation – Global Standards effective 31 January 2022, which incorporate the IVSC International Valuation Standards and, where applicable, the relevant RICS national or jurisdictional supplement (the ‘Red Book'); with the valuation being 'Fair Value' as defined in UK Generally Accepted Accounting Principles (UK GAAP), specifically FRS 102.

At 31 March 2023 the Charity had total commitments on improvement projects contracted but not provided for of £136,500 (2022: £700,000).

On 29 March 2023 the Estate exchanged contracts for the acquisition of a combined commercial and residential block at a price of £5,250,000. The acquistion was completed on 3 April 2023 and as the Estate did not control the asset at the yearend, the site has not been treated as an acquisition at the balance sheet date.

36 The Dulwich Estate Annual Report 2023

The Dulwich Estate Annual Report 2023 37

The Dulwich Estate

Notes To The Financial Statements Year Ended 31 March 2023

The Dulwich Estate
Notes To The Financial Statements
Year Ended 31 March 2023
10.(a) INVESTMENTS
Analysis of movement of investments
Market value At 1 April
Purchases
Sale proceeds
Net gain on investments
Net cost of currency hedging contracts
Net loss on currency hedging contracts
Cash held in investment portfolio
Total investment portfolio value
Historical cost
Investments
UK Equities
Overseas Equities
Total investments
Cash held in investment portfolio
Total investment portfolio value
10.(b) INVESTMENT IN SUBSIDIARY UNDERTAKINGS
i) Alleyn Road 102 Limited
Market Value of investments at 31 March		 2023
£ 000's
121,905
49,502
(49,307)
2,271
-
-
124,371
3,514
127,885
113,415
23,879
100,491
124,370
3,514
127,884
100		 2022
£ 000's
119,270
39,436
(43,144)
6,343
105
(105)
121,905
4,352
126,257
106,988
23,406
98,499
121,905
4,352
126,257
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. At 31 March 2023, the Company owed the Charity £340,924 (2022: £336,590) 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 2023 and 31 March 2022 are summarised as follows:

2023 2022
£ £
Profit & loss account Turnover - -
Administration expenses (5,070) (26,360)
Loss (5,070) (26,360)
Balance Sheet Fixed assets - -
Current assets 269,054 269,804
Less: creditors (669,056) (664,736)
Net liabilities (400,002) (394,932)
Called up share capital 100 100
Profit and loss account (400,102) (395,032)
Shareholder's funds (400,002) (394,932)

The Dulwich Estate

Notes To The Financial Statements Year Ended 31 March 2023

e Dulwich Estate
otes To The Financial Statements
ar Ended 31 March 2023
2023 2022
£ £
b) INVESTMENT IN SUBSIDIARY UNDERTAKINGS (continued)
ii) Dulwich Estate Services Limited 3 3

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

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 2023, the Company owed the Charity £114,760 (2022: £82,698) 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 2023 and 31 March 2022, are summarised as follows:

ended 31 March 2023 and 31 March 2022, 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
2023
2022
11. DEBTORS
£ 000's
£ 000's
Rents, insurance and maintenance charges
1,437
-
Property repair contracts
1,329
£ 000's
Sale of Estate property
11
-
Investment income
256
1,802
Scheme of Management
126
342
Christ's Chapel of God's Gift at Dulwich Charity
175
11
The Dulwich Almshouse Charity
10
175
Alleyn Road 102 Limited
-
27
Dulwich Estate Services Limited
115
14
Sundry accounts
1,102
20
4,561
2,391
2023
2022
12. CASH AT BANK, ON DEPOSIT AND IN HAND
£ 000's
£ 000's
Cash at bank and in hand
464
£ 000's
Deposit accounts
5,998
-
6,462
-
Special deposits
524
-
6,986
-
Group		 2023
2022
£
£
5,424
3,127
(6,889)
(5,723)
(1,465)
(2,596)
-
-
(1,465)
(2,596)
118,549
86,246
(122,569)
(88,801)
(4,020)
(2,555)
(4,020)
(2,555)
2023
2022
£ 000's
£ 000's
1,437
1,802
1,329
342
11
11
256
175
126
27
175
14
10
20
341
337
115
83
1,105
229
4,905
3,040
2023
2022
£ 000's
£ 000's
194
70
5,998
7,135
6,192
7,205
524
424
6,716
7,629
Charity		 2022
£
3,127
(5,723)
(2,596)
-
(2,596)
86,246
(88,801)
(2,555)
(2,555)
3,040
2022
£ 000's
70
7,135
7,205
424
7,629

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.

38 The Dulwich Estate Annual Report 2023

The Dulwich Estate Annual Report 2023

39

The Dulwich Estate

Notes To The Financial Statements Year Ended 31 March 2023

2023
2022
£ 000's
£ 000's
13. CREDITORS
Rents, maintenance charges and insurance due and received in advance
868
902
Property repair contracts
14
28
Trade creditors
880
792
Taxation & Social Security
84
47
Sundry accruals
962
932
Sundry creditors
937
949
Balance of Income Distribution payable to Beneficiaries
4,977
2,377
8,722
6,027		 2023
£ 000's
868
14
867
97
962
934
4,977
8,719		 2022
£ 000's
902
28
733
107
932
947
2,377
6,026

The Dulwich Estate Notes To The Financial Statements Year Ended 31 March 2023

14. FUNDS (continued)

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 £1,416,000 (2022: £1,910,033) comprises a transfer to the Property Valuation Fund in respect of the cost of property purchased and improved during the year of £1,790,000 (2022: 2,368,023 - Note 8) less proceeds from sale of properties of £374,000 (2022 - 552,305 - Note 8) plus a transfer of £nil (2022: 94,315) to the Estate Development Reserve representing expenditure on projects previously expended.

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.

14. FUNDS
PERMANENT ENDOWMENT
Property Valuation Fund
Capital Reinvestment Fund
DESIGNATED
Residential Property Repairs
Commercial Property Repairs
Estate Office Repairs
Estate Development Reserve
RESTRICTED
TOTAL FUNDS		 At
1 April
2022
£ 000's
236,384
130,392
366,776
370
34
37
274
715
513
368,004		 Income
Expenditure
£ 000's
£ 000's
-
-
-
(557)
-
(557)
-
(1,097)
-
(65)
-
(45)
-
(183)
-
(1,390)
13,298
(12,359)
13,298
(14,306)		 (Loss)/Gain On
Investment
Assets
£ 000's
£ 000's
1,416
(2,489)
(1,416)
2,271
-
(218)
800
-
80
-
25
-
75
-
980
-
(980)
-
-
(218)
Transfers
between
funds		 Actuarial
Loss
£ 000's
-
-
-
-
-
-
-
-
(69)
(69)		 At
31 March
2023
£ 000's
235,311
130,690
366,001
73
49
17
166
305
403
366,709

Capital Reinvestment Fund

This fund 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, transfers were made from the Restricted Fund as follows: - £800,000 was allocated to the Residential Property Repair Fund; £80,000 to the Commercial Property Repair Fund and £25,000 to the Estate Office Repair 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, net costs of £182,985 were charged to this account and there was a transfer of £75,000 (2022: £nil) from the Restricted Fund.

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 2023 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.

40 The Dulwich Estate Annual Report 2023

The Dulwich Estate Annual Report 2023 41

The Dulwich Estate

Notes To The Financial Statements Year Ended 31 March 2023

The Dulwich Estate
Notes To The Financial Statements
Year Ended 31 March 2023
15. ANALYSIS OF NET ASSETS BETWEEN FUNDS
2023
Operational property
Other tangible fixed assets
Intangible fixed assets
Real estate
Investments
Pension asset
Debtors
Money Market Funds
Cash at Bank
Creditors
2022
Operational property
Other tangible fixed assets
Intangible fixed assets
Real estate
Investments
Pension asset
Debtors
Money Market Funds
Cash at Bank
Creditors		 Designated
Funds
£ 000's
-
-
-
-
-
-
-
-
305
-
305
-
-
-
-
-
-
-
-
715
-
715		 Restricted
Fund
£ 000's
-
83
266
-
-
85
4,905
-
3,633
(8,569)
403
-
94
257
-
-
195
3,040
-
2,803
(5,876)
513		 Permanent
Endowment
Funds
£ 000's
1,050
-
-
234,262
127,884
-
-
177
2,778
(150)
366,001
1,250
-
-
235,135
126,257
-
-
173
4,111
(150)
366,776		 Total
£ 000's
1,050
83
266
234,262
127,884
85
4,905
177
6,716
(8,719)
366,709
1,250
94
257
235,135
126,257
195
3,040
173
7,629
(6,026)
368,004

The Dulwich Estate

Notes To The Financial Statements Year Ended 31 March 2023

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		 Percentage
Share of
Remainder
35.660%
27.048%
23.121%
10.923%
3.248%
100%		 2023
2022
Total
Total
£ 000's
£ 000's
135
110
53
50
188
160
2,674
2,549
2,028
1,873
1,734
1,627
819
770
243
228
7,686
7,207

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 rules were amended in 2022 with Charity Commission approval, to increase the payment to Christ's Chapel Charity for the year ended 31 March 2022 to £50,000 and for it to increase annually by CPI thereafter. At the same time, the Charity Commission also approved an increase in the annual payment to The Dulwich Almshouse Charity with effect from 1 April 2022 to £135,000 also increasing annually by CPI thereafter.

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%) which is apportioned between them in accordance with the average numbers of pupils attending each school during the preceding three years.

During the year, payments to the School Beneficiaries totalled £4,898,185 (2022: £6,930,706 ). The second interim distribution for the year ended 31 March 2023 in the sum of £2,480,269 was paid at the beginning of April 2023.

17. 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 £65,798 (2022: £143,934).

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 2022, the Scheme Actuary carried out the triennial actuarial valuation as at 1 April 2021. This disclosed a Scheme surplus of assets over liabilities of £724,000. 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 April 2022 to 46.8% (44.6%) of annual pensionable salary in respect of future service and spouses' death in service benefits. The next triennial actuarial valuation will be carried out at 1 April 2024.

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43

The Dulwich Estate

Notes To The Financial Statements Year Ended 31 March 2023

17. 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 2024 is £48,175. 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.

2023 2022
% p.a. % p.a.
Price inflation 3.3 3.7
Discount rate 4.7 2.8
Pension increases (LPI) 3.2 3.5
General salary increases 2.7 3.0

Mortality - pre and post retirement is based on S3PxA_L tables with CMI 2021 (2022 - CMI 2020) improvements with a 1% long-term trend rate:

long-term trend rate:
Current pensioners age 65 - males
Current pensioners age 65 - females
Future pensioners (currently 45) - males
Future pensioners (currently 45) - females
Fair value of plan assets
Present value of funded obligations
Net defined benefit asset
Balance Sheet Limitation
Gross pension asset
Employer's part of current service cost
Interest cost
Settlements
Administration costs incurred during the period
Total pension expense
Actuarial (loss)/gain on plan assets
Actuarial gain/(loss) on defined benefit obligation
Total gain
Effect of limit on surplus recognised
Total loss recognised on the SOFA
The following amounts have been allocated across
the Expenditure categories of the SOFA:
The following amounts have been recognised in
the Gains/(Losses) category of the SOFA:
The amount included in the Balance Sheet arising from
The Dulwich Estate's obligations in respect of the Scheme is as follows:		 2022
Years
23.1
24.7
24.1
25.8
2023
£ 000's
6,266
(3,534)
2,732
(2,647)
85
37
(5)
91
44
167
(431)
1,209
778
(847)
(69)		 2022
Years
23.1
24.6
24.0
25.8
2022
£ 000's
7,725
(5,779)
1,946
(1,751)
195
47
(9)
-
57
95
(87)
1,021
934
(1,202)
(268)

The Dulwich Estate Notes To The Financial Statements Year Ended 31 March 2023

The Dulwich Estate
Notes To The Financial Statements
Year Ended 31 March 2023
17. 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 (loss)
Contributions by the Employer
Contributions by Scheme members
Benefits paid
Non Investment Expenses
Closing fair value of Scheme assets		 2023
% p.a.
45
39
2
14
100
2023
£ 000's
5,779
145
8
37
(1,209)
(1,317)
91
3,534
2023
£ 000's
7,725
199
(431)
126
8
(1,317)
(44)
6,266		 2022
% p.a.
45
40
5
11
100
2022
£ 000's
6,761
134
11
47
(1,021)
(153)
-
5,779
2022
£ 000's
7,722
154
(87)
135
11
(153)
(57)
7,725

The actual return on the Scheme's assets during the year to 31 March 2023 was a loss of £232,000 (2022: gain of £67,000).

Fair value of Scheme assets
Present value of Scheme liabilities
Gross pension asset
Experience adjustments on Scheme assets
Amount of (loss)/gain
Percentage of Scheme assets
Experience adjustments on Scheme liabilities
Amount of (loss)/gain
Percentage of present value of Scheme liabilities		 2023
2022
2021
£ 000's
£ 000's
£ 000's
6,266
7,725
7,722
(3,534)
(5,779)
(6,761)
2,732
1,946
961
2023
2022
2021
£ 000's
£ 000's
£ 000's
(431)
(87)
1,245
6.9%
1.1%
16.1%
(199)
293
(72)
5.6%
5.1%
1.1%

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45

The Dulwich Estate Notes To The Financial Statements Year Ended 31 March 2023

18. 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 £44,530 (2022: £22,264) and £31,740 (2022: £16,948) respectively. The Dulwich Almshouse Charity leased property from The Dulwich Estate, The Old Grammar school, for £5,500 pa (2022: £5,500 pa).

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 (2022: £1,220).

20. NOTES TO THE CASH FLOW STATEMENT

20. NOTES TO THE CASH FLOW STATEMENT
Note
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
2022
£ 000's
7,629
4,352
173
12,154		 2023
£ 000's
99
3,187
3,286
374
(1,790)
(133)
(49,502)
49,307
-
(1,744)
Cashflows
£ 000's
(913)
(838)
4
(1,747)		 2022
£ 000's
3
2,729
2,732
552
(2,368)
(161)
(39,436)
43,144
(105)
1,626
At 31 March
2023
£ 000's
6,716
3,514
177
10,407

The Dulwich Estate Notes To The Financial Statements Year Ended 31 March 2023

21. ANALYSIS OF INCOME AND EXPENDITURE BY FUND

2023
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)
2022
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
9,762
170
3,366
(4,243)
(89)
(175)
-
(7,686)
(166)
939
Restricted
£ 000's
8,999
185
2,806
(3,440)
(56)
(161)
-
(7,207)
(141)
985		 Designated
£ 000's
-
-
-
(1,390)
-
-
-
-
-
(1,390)
Designated
£ 000's
-
-
-
(976)
-
-
-
-
-
(976)		 Endowment
£ 000's
-
-
-
-
-
-
(557)
-
-
(557)
Endowment
£ 000's
-
-
-
-
-
-
(585)
-
-
(585)		 Total
£ 000's
9,762
170
3,366
(5,633)
(89)
(175)
(557)
(7,686)
(166)
(1,008)
Total
£ 000's
8,999
185
2,806
(4,416)
(56)
(161)
(585)
(7,207)
(141)
(576)

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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 2023