DANIA_SCHOOL_LIMITED - Accounts

The trustees present their report and financial statements for the year ended 31 August 2019.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's [governing document], the Companies Act 2006 and “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)” (as amended for accounting periods commencing from 1 January 2016).

The trustees confirm that the Charity Commission's general guidance on public benefit has been considered in relation to the objectives of the Charity to advance education. The report sets out these aims and objectives and describes how they have been met in the current year.

Our Aims

The objects of the School are the advancement of education (including social and physical) of boys and girls in a multicultural environment with a Scandinavian focus, and in particular to maintain a day school in Islington, London.

We aim to provide a first class education to boys and girls from the ages of 2-11. We seek to provide an educational environment that develops our pupils’ capabilities, competencies and skills. We aim to promote in particular multilingual and multicultural education. We promote the academic, moral and physical development of our pupils through our academic curriculum, pastoral care, sporting and other activities. We provide an educational environment where each student can develop and fulfil their potential, building their self-confidence and inculcating a desire to contribute to the wider community. In so doing, we prepare our pupils for the opportunities, responsibilities and experience of later life.

Our Objectives

Our objectives are set to reflect our educational aims and the ethos of the School. It is important to us that we maintain and enhance the academic success of the School. This objective is, however, set in the context of the broader goals we set for the School and its pupils.

In setting our objectives and planning our activities our Governors have given careful consideration to the Charity Commission’s general guidance on public benefit and in particular to its supplementary public benefit guidance on advancing education and on fee-charging. Our key objectives for the period included:

• To offer high quality education to any family interested in the Scandinavian child-centric model of education;

• To offer families with a connection to Scandinavia the opportunity for their children to learn to speak, read and write Scandinavian languages;

• To build partnerships with secondary schools that can offer Dania pupils the opportunity to continue their studies of Scandinavian languages;

• To recruit high quality staff with skills to provide a high quality education;

• To recruit staff to provide multilingual and multicultural education;

• To create extra-curricular provision for pupils;

• To provide support of our pupils in need of fee assistance through bursaries;

• To maintain and develop first class pastoral care for pupils;

• To increase pupil numbers to provide financial security for future years;

• To play our part in the life of our local community through our community access and service programmes.

Our Ethos, Strategy and Policies

Our Governors are responsible for setting a strategy for achieving the objectives they have set. The focus of our strategy is on the development of our pupils, their continued high levels of academic and co-curricular achievement and to further widen access to the education our School provides. In taking forward our strategy we:

• Review the School’s academic syllabus, teaching practices and examination results;

• Ensure the range of co-curricular activities available to our pupils is stimulating and challenging;

• Ensure the multilingual and multicultural facets of the School’s aims are promoted within the curriculum and extra-curriculum;

• Invest in facilities and equipment of our School;

• Co-operate and share resources with local schools; and

• Continue to review and develop our methods for awarding bursaries to ensure wider access to pupils from all backgrounds.

Our Ethos: A Caring School Serving Our Local Community and Society

Dania School is a registered charity which seeks to benefit the public through the pursuit of its stated aims. Our fees are set at a level to ensure the financial viability of the School and at a level that is consistent with our aim of providing a first class education to boys and girls.

Our School welcomes pupils from all backgrounds. Both British and Scandinavian children will benefit from the School’s multicultural approach. To admit a prospective pupil we need to be satisfied that our School will be able to educate and develop the prospective pupil to the best of their potential and in line with the general standards achieved by their peers. An individual’s economic status, gender, ethnicity, race, religion or disability do not form part of our assessment processes.

We are an equal opportunity organisation and are committed to a working environment that is free from any form of discrimination on the grounds of colour, race, ethnicity, religion, sex, sexual orientation or disability. We will make reasonable adjustments to meet the needs of staff or pupils who are or become disabled.

Our School is committed to safeguarding and promoting the welfare of our pupils and expects all staff and volunteers to share this commitment. Parents are given regular information about their children’s social and academic progress through parent evenings in addition to the traditional end of term and year reports. We maintain regular contact with parents throughout the year through informal contacts and through our newsletter. We have vigorous safeguarding procedures in place, and we work closely with Islington Council to secure new regulations are immediately integrated into our policies and staff training.

Access Policy

It is important to us that access to the education we offer is not restricted to those who can afford our fees. We believe our pupils benefit from learning within a diverse community. A great deal of learning occurs through social interaction, conversation and shared experiences which helps our pupils develop an understanding of the perspectives of other people that will be vital in their adult lives. Our bursary policy contributes to a widening of access to the education we offer and the facilities we enjoy. Our policy states 10% of any surplus must fund bursaries. In years of no financial surplus we aim for 10% of the cohort to receive some kind of financial support through bursaries.

Bursary Policy

The Governors view our bursary awards as important in helping to ensure children from families who would otherwise not be able to afford the fees can access the education we offer. Our bursary awards are available to all who meet our general entry requirements and are made solely on the basis of parental means or to relieve hardship where a pupil’s education and future prospects would otherwise be at risk - for example in the case of redundancy. In assessing means we take a number of factors into consideration including family income, investments and savings and family circumstances for example dependant relatives and the number of siblings. However, our School does not yet have an endowment and in funding our awards we have to be mindful that we must ensure a balance between fee-paying parents, many of whom make considerable personal sacrifices to fund their child’s education, and those benefiting from the awards.

The bursary awards range from 25-50% remission of fees. Information about fee assistance through bursaries is provided to all applying to the School. The success of our bursary scheme is explained in our review of the activities and achievements section of this report. Details of bursary awards are also set out in the accounts.

Fundraising Standards

During the 2018/2019 school year our active fundraising activities included the following:

• Our annual Spring Fayre in April. This invitation-only event is organised by parents and the money goes towards a year end school trip for the children in June.

• Parents are offered the opportunity to donate their £1,000 deposit when their children leave the school. This money goes towards fixtures and fittings in classrooms.

Dania also receives occasional unsolicited donations.

In all matters related to fundraising and donations, Dania abides by the Code of Fundraising Practice published by the Institute of Fundraising.

Review of the Activities and Achievements

Dania School opened on 1 September 2013 and welcomed its first pupils at the start of the academic year on 11 September 2013. Pupil numbers were 30 at the term-end of August 2019. Our fees for the current year before the deduction of any means assisted bursaries were:

• £1,015 pcm for a preschool place and £785 pcm for a primary school place per school year.

• Topics include English Literacy, Danish, PSHE, PE, Music, Swimming and Drama. Science and Maths is taught by specialist teachers.

• Extra-curricular activities include outdoor learning, Danish language teaching and Drama and Music.

• We do not offer SATS at age 6 or any other standardised tests, in line with our ethos.

• We have 9 teaching staff.

• We offer 3 weekly after school clubs.

Details of Bursary and Scholarship Awards – Policy into Practice

Bursaries

Means tested bursaries have been awarded to children attending Dania as at 1 September 2018. During the academic year to 31 August 2019 three bursaries were awarded. The value of means tested bursaries totalled £14,129 and represented between 40% and 50% of gross fees depending on the bursary arrangement for the individual child. They provided assistance to three of our pupils.

Review

The Governors review our Bursary and Scholarship Awards policies annually to ensure that able children can accept offers of places at our School through the availability of means tested fee assistance. Our policy is designed to widen access to our School. We anticipate this review will help inform the development of our policy and help ensure the objective of wider access continues to be achieved.

Community Service

The School’s After-School-Club is open to the wider community and attracts children from around 6 other schools. Additionally we have regular events open to the wider community such as a Summer Party, Spring Fayre and Sports Day.

Our Finances

The financial statements show a net surplus for the period on School activities of £68,423 (2018: surplus of £11,966). Fee income is the principal source of income contributing £358,718 (2018: £300,740).

Total funds at the year end show a net surplus of £44,035 (2018: deficit £24,388). We recovered student numbers during the 2017/2018 school year and further progress has been made since then. Total funds are on track to grow over the coming years through an increase in pupil numbers.

As a charity the parents of our pupils have the assurance that all the income of the School must be applied for educational purposes. As an educational charity we enjoy tax exemption on our educational activities and on our investment income and gains provided these are applied for our charitable aims. As a charity we are also entitled to an 80% reduction on our business rates on the property we occupy for our charitable purposes. The financial benefits we receive from these tax exemptions are all applied for educational purposes and indirectly help us to maintain our bursary policies.

However, as an educational charity, we are unable to reclaim VAT input tax on our costs as we are exempt for VAT purposes. We also pay tax as an employer through the national insurance contributions we make. In addition to the very substantial benefits our School brings to our pupils, the local community and society through the education we offer, our bursary programme creates a social asset without cost to the Exchequer.

Reserves and Financial Health

The Governors regularly review the finances, budgets and spend against budget together with a monthly cash flow analysis as part of the effective stewardship of the School. Reserves at the year end, excluding those tied up in fixed assets, stood at £39,489 (2018: deficit of £28,406) reflecting the progress made by the school. The ongoing financial strength of the business will be dependent on increasing pupil numbers.

Risk Management

The Governors are responsible for the overseeing of the risks faced by the School. Detailed considerations of risks are delegated to the Senior Management of the School. Risks are identified, assessed and controls established throughout the year. A formal review of the charity’s risk management processes is undertaken on an annual basis. Risk is managed under the headings of financial sustainability, school safety, student welfare, employment, school trips and events and community access. Through the risk management processes established for the School, the Governors are satisfied that the major risks identified have been adequately mitigated where necessary. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

Future Plans

Dania’s main growth priority is the addition of new pupils in order to bring the School to a position of financial strength. Our goal is to exceed 30 children at the start of the 2019/2020 school year. Further growth is likely as the school develops a reputation for quality and marketing strategies increase recognition.

The Governors intend to continue their current strategies of maintaining the School’s position in a competitive market by investing to provide high quality education for our pupils. Achieving a high standard of academic results is a constant aim whilst maintaining the breadth and depth of the education provided. The Headteacher and senior staff continue to review the curriculum to ensure that the educational qualifications remain appropriate for our pupils’ development.

The charity is a company limited by guarantee governed by its Memorandum and Articles of Association.

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Governor Recruitment and Training

The Governing body requires breadth and depth of experience to carry out its duties effectively and efficiently. When recruiting new Trustees and Governors the important attribute is a passion for the work of our School and an understanding of education as a holistic and rounded experience of personal growth. We advertise locally and through our connections for new Governors. We also invite senior Anglo-Scandinavian business people to consider joining our board. Where possible the Governors consider that the skills and experience of the Board should comprise the following:

• A Governor with a business background.

• A Governor with a financial/accounting background.

• A Governor with education experience.

• A Governor with senior managerial experience.

• A Governor with experience of equal opportunities or disability needs.

• At least one female Governor and at least one male Governor.

• One Governor may have one or more of these skills.

The results for the year and the financial position at the year-end were considered satisfactory by the trustees.

The Governors, amongst whom four are also the charity trustees, are responsible for the overall management and control of Dania School Limited and meet a minimum of eight times a year. The Governors work under the chairmanship of Peter Melbye, Trustee and Chair of the Board. Emily Bridges is responsible for overseeing the financial management of the school. Alexander Kahn is responsible for coordinating the work of the Governors and their Committees as well as all board interactions with regulators. Christopher Seidenfaden is responsible for community relations particularly our relationships with Scandinavian expat community organisations.

All trustees give of their time freely and no remuneration or expenses were paid in the period. Nana Meulengracht Larsen, who is a parent governor, benefits from a means tested bursary that was in place before she was elected by parents as their representative. Aside from this, no Governor or person connected with a Governor received any benefit from either means tested bursaries or scholarships awarded to our pupils.

Organisational Management

The Governors determine the general policy of the School. The day to day running of the School is delegated to the Head, supported by senior staff. The Headmaster undertakes the key leadership role overseeing educational, pastoral and administrative functions in consultation with the senior staff.

The day to day administration of the School is undertaken within the policies and procedures approved by the Governors, which provide for only significant expenditure decisions and major capital projects to be referred to the Governors for prior approval.

The Headteacher oversees the recruitment of all educational staff, administrative and non-teaching support staff. The Head is invited to attend Governors’ meetings.

The trustees' report was approved by the Board of Trustees.

I report to the trustees on my examination of the financial statements of Dania School Limited (the charity) for the year ended 31 August 2019.

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or

the financial statements do not accord with those records; or

the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Education costs

Premises costs

Admin costs

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 August 2019.

The trustees acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

Dania School Limited is a private company limited by guarantee incorporated in England & Wales, company number 08155547. The registered office is St David, Westbourne Road, London, N7 8AB.

The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006 and “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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes. There were no restricted funds in the period.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Expenditure, including staff costs, is included in the accounts on an accruals basis and has been classified under headings that aggregate all costs relating to that category. The irrecoverable VAT is included with the item of expenditure to which it relates.

When expenditure cannot be directly attributed to specific activities, it is apportioned on the basis of the estimated time spent by staff on those activities.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

Fundraising Standards

In all matters related to fundraising and donations, Dania School Limited abides by the Code of Fundraising Practice published by the Institute of Fundraising.

Fee income

After school and holiday clubs

Equipment sales

Other income

Independent examiner fee

Accountancy fees

None of the trustees (or any persons connected with them) received any remuneration, reimbursement of expenses or benefits from the charity during the year.

The average monthly number of employees during the year was:

Directors' loans are interest free and repayable on demand.

Included within Summer school, after school and grant income is the London Borough Council of Islington National Education Grant of £23,641 (2018: £17,929) which was wholly utilised in the period.

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

The remuneration of key management personnel is as follows.

During the year the charity entered into the following transactions with related parties:

Re:accounts Limited is related to the charity as it is controlled by Ms E Bridges, who served as a governor during the year. The total amount charged by Re:accounts Limited during the year for accountancy services provided to the charity was £5,730 inclusive of irrecoverable VAT.