Charty registratlon number 1058375 THE HAWTHORNE MEADOW TRUST ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Caladine Chartered Certified Accountants THE HAWTHORNE MEADOW TRUST LEGAL AND ADMINISTRATIVE INFORMATION Trustsos Mr D G Southgate Mrs M Hammond Mr D W E G Hammond Mrs R Southgate Mr8 J E D'Lima Charlty number 1058375 Prlnclpal addre88 clo David Hammond 7 Louis Close Old Catton Norwich NR6 78G Independent examlner John Caladine FCCA CTA FCIE Caladine Limited Chantry House 22 Upperton Road Eastboume East Sussex BN21 18F THE HAwfHORNE MEADOW TRUST CONTENTS Page Trustees, report Statement of Trustees, responsibilits'es Independent examlnorfs report Statement of financi818ctivities statement of financial positlon Notes to the financial statements 7-11 THE HAWTHORNE MEADOW TRUST TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2022 The trustees present their annual report and financial statements for the year ended 31 December 2022. 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 Trust deed, the Charities Act 2011 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)" {effective 1 January 2019). Objectlves and actlvltl88 The objects of the charty are as follows: to relieve persons who are in need by reason of financial hardship, ill health, unemployment or such other economic or social disadvantage in particular, but not limited to, those who are regular attenders at Meadow Way Chapel, Chapel Court, Hellesdon, Norwich or are associated wrth such Chapel and In particular, but not so as to limit the generality of the foregoing, to provide residential accommodation for those who are in charitable need because of their age, infirmity, disability or otherwise on terms appropriate to their means.. Such other charitable purposes in particular, but not so as to limit the generality of the foregoing.. to further the religious and other charitable work of Meadow Way Chapel, Chapel Court, Hellesdon, Norwich; the relief of poverty, ill-health, unemployment or such other economic or soci81 disadvantage; and for the advancement of educab'on The trustees have pald due regard to guldance Issued by the Charity Commlsslon In decldlng what actlvltles the charlty should undertake. In partlcular the Charlty Commlsslon guldance on publlc beneflL Achlevements and performance The past 12 months has seen the Coronavirus pandemic ease somewhat. However, we sadly remember friends and family that have been impacted by the pandemic whilst, at the same time, praising God for the lives of those who passed on. One major change. which occurred in may, was that Meadow Idwdy Chapel w8S taken over by Gateway Vineyard Church which coincided with the resignation of the Meadow Way Chapel Community Worker. Encouragingly, the Trustees of the new church immediately indicated their interest, having noted that the Meadow Way Community Worker had played a major role with their work amongst the elderly of the local communty. Both sets of Trustees agreed that the vacancy should be filled as soon as possible. Continuing with our ZOOM meetings, H8￿hOrne Meadow Trust trustees also noted the wider role of Gateway Vineyard Church and were keen that the 'local' support for the elderly continued. The Gateway Vineyard Trustees confirmed that support for this IoGal work would continue. The remainder of the year saw communication be￿een the two sets of Trustees wrth, firstly. agreeing a new Job Descripts'on for the new Community Worker, now known as the Older People Community Worker. Having agreed the new Job Description, the role was advertised towards the end of the year, and the Trust awaits the outcome. The aim is that the new Community Worker's role is to commence in the early part of 2023. Both sets of Trustees are praying for the right person to fill the role. Vthilst the Community Worker's role fomied part of the Trustees work during 2022, our Pinewo¢xls project was also moving forward. Currently, our solicitors are endeavouring to put in place a 'tendering' process whereby the Trustees are able to approach local builders to quote to build our 5 bungalows. suitable for the 0¢￿patIon by the the elderly. Included in our project will be a Day Room for use of our tenants. The Trustees continue to pray for new Trustees who must have a heart in supporting our work amongst the elderly of the local community. Appointing a new solicitor remains outstanding. It is our prayer that this fresh start will bring new Trustees so as to continue the essential and valuable work with the elderly. The Twstees Continue to praise God for the guidan￿ and encouragement we have received to date none more than that of receiving a further legacy as proof that we are on the right path. THE HAwfHORNE MEADOW TRUST TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Flnanclal revlew The result for the year was a surplus on the general unrestricted fund of £418,244 (2021 deficit.. £19,068) . General unrestricted reserves ended the year at £1,729,186 (2021: £1,310,942). Income was boosted in the year by the receipt of a legacy of £441,315, which has enabled work to o)mments on the planned development for the land owned at Hawthorne Road. This development will fulfil the Trusts. primary purpose of providing accommodation for elderly people in need. Reserves Pollcy It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and Six month's expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity, current activities while consideration is given to ways in which additional funds may be ralsed. Thls level of rese￿8$ has been maintained throughout the year. Current high levels of unrestricted reserves are due to the receipt of substsntial legacies which will enable the long planned for development of land owned by the charity to fulfil Its primary purpose of providing accommodation for elderly people in need. structure, governance and management The charity is an unincorporated charity (registered number 1058375) governed by a Declaration of Trust dated 6th August 1996. The trustees who served during the year and up to the date of signature of the financial statements were: Mr D G Southgate Mrs M Hammond Mr D W E G Hammond Mrs R Southgate Mrs J E D'Lima New trustees are appointed by the existlng trustees by virtue of their personal or professional qualifications to make contribution to the pursuit of the objects of the management or the Charity. The Trustees, report was approved by the Board of Trustees. Mr D W E G Hammond Trustee Date: . THE HAWTHORNE MEADOW TRUST STATEMENT OF TRUSTEES, RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2022 The trustees are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year. In preparing these financial statements, the trustees are required to: select suitable accounting policies and then apply them consistently; observe the methods and principles In the Charltles SORP; make judgements and estimates that are reasonable and prudent; state whether applicable accountlng standards have been followed, Subject to any material departures disclosed and explained in the financial statements., and prepare the financlal statement8 on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy al any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011 , the Charity (Accounts and Reports) Regulations 2008 and the provisions of 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 HAWTHORNE MEADOW TRUST INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE HAwfHORNE MEADOW TRUST I report to the trustees on my examination of the financial statements of The Hawthorne Meadow Trust (the charity) for the year ended 31 December 2022. Responsibilities and basis of report As the trustees of the charity you are responsible for the preparation of the financial statements in accordan￿ with the requirements of the Charities Act 2011 (the 2011 Act). I report in respect of my examination of the charity's financlal statements carrled out under section 145 of 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. Independent examlnerfs statement Since the charity's gross income exceeded £250,000 your examiner must be a member of a body listed in sectlon 145 of the 2011 Act. I confirm that l am qualified to undertake the examination because l am a memb& of The Association of Chartered Certified Accountants, which is one of the listed bodles. Your attents'on is drawn to the fact that the charity has pr8pared financlal statements in accordarce with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities.. Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn. l understand that this has been done in order for financial statements to provide a twe and fair vi8w in accordance with Generally AC￿pted Accounting Practice effective for reporting periods beginning on or after 1 January 2015. I have completed my examination. I confimi 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 ￿qUired by section 130 of the 2011 Act,. or the financial ststements do not accord with those records; or the financial statements do not comply wth the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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. I have no ￿nCernS 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. -O.I John Caladlne FC TA FCIE Caladine Llmited Chantry House 22 Upperton Road Eastbourne East Sussex BN211BF Dated.. .1.1 . lo 03 THE HAWTHORNE MEADOW TRUST STATEMENT OF FINANCIALACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2022 Unrestrlctsd Unrestrfcted funds funds 2022 2021 Notss Income from: Donations and legacies Investrnents other income 441,315 5,394 305 8,000 100 24 Total Incoma 447,014 8,124 Charitable activities 28,770 27,192 Net Incomel(expendtture) for tho yearl Net movement In funds 418,244 (19,068) Fund balances at 1 January 2022 1.310,942 1,330,010 Fund balances at 31 December 2022 1,729,186 1,310,942 The ststement of financial activities includes all gains and108ses recognised in the year. All income and expenditure derive from continuing activrties. THE HAWTHORNE MEADOW TRUST STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2022 2022 2021 Notes Flxed assets Propety, plant and equipment 10 295,000 295,000 Current assets Cash at bank and In hand 1,435,626 1,016,252 Current Ilabllltlos 11 (1,440) (310) Net current assets 1,434,186 1,015,942 Total ass•ts l•ss current Ilabllltlas 1,729,186 1.310,942 Income fund8 Unrestricted funds - general 1,729,186 1,310,942 1,729,186 1,310,942 The financial statements were approved by the Trustees on . I l...bG.lP.l￿ 2a?3 Mr D W E G Hammond Trustoo THE HAWTHORNE MEADOW TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Accountlng policies Charity Infonnatlon The Hawthorne Meadow Trust is an unincorporated charity governed by 8 Declaration of Trust dated 6th August 1996. 1.1 Accountlng conv8ntion The financial statements have been prepared In accordance with the charity's governlng document, the Charits'es Act 2011, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland. ('FRS 102") and the Charities SORP "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)" (effective 1 January 2019). The charity Is a Public Benefit Entity as defined by FRS 102. Tha charity has taken advantage of the provisions in the SORP for charities not to prepare a Statwnent 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, Imodified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below. 1.2 Golng concern 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 trLStees continue to adopt the going concern basis of accounting in preparing the financial statements. 1.3 Charitsble funds Unrestricted funds are avallable for use at the discretion of the trustees In furtherance of their charitable objectives. Restrlcted funds are subject to specrfic condltions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. Endowment funds are subject to speclfi¢ conditions by donors that the capltal must be maintalned by the charity. 1.4 Incom• Income is recognised when the charity is legally entitled to it after any pgrformance conditions have been met, the amounts can be measured reliably, and it is probable that income will be re￿ived. Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless perf0rrnan￿ conditions require deferral of the amount. Income tax recoverable in relation to donations received under GiftAid or deeds of covenant is recognised al the time of the donation. Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and re￿Ipl is expected. If the amount is not known, the legacy is treated as a contingent asset. THE HAWTHORNE MEADOW TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Accounting pollcles (Continued) 1.5 Expendlture Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably. Expenditure is classified by activity. Th6 Costs of each activty are made up of the totsl of dIr￿t costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute lo more than one activity and support costs which are not attribulable to a single activity are apportioned between Ihose activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreclatlon charges are allocated on the portion of the asset's use. 1.6 Property, plant and 8qulpment Property, plant and equipment are initlally measured at cost and subsequently measured at Cost or valuation, net of depreciation and any impairment losses. Depreelatlon is recognised so as to write off the cost or valuation of assets less their residual values over thelr useful lives on the following basis.. Freehold land and buildings not depreciated These are not depreclated as the land & buildlngs are to be developed as set out in the Trustees, Report. The gain or loss arising on the disposal of an asset is detennined as the difference be￿een the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities. 1.7 Impairment of non.current assets At each reporting end date, the charity reviews the carrying amounts of Its tangible assets to detemine 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). 1.8 Cash and ¢a8h equlvalents 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. Basic financlal assets Basic financial assets, which include trade and other receivables 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. THE HAWTHORNE MEADOW TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Accountlng pollcles (Continued) Basic flnanclal liabilltles Basic financial liabilities, including trade and other payables 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, uslng the effective interest rate method. Trade payables are obligations to pay for goods or services that have been 8cqulred 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