ANNUAL REPORT AND FINANCIAL STATEMENTS HEARTWOOD HOUSE FOR THEYEAR ENDING 31 AUGUST2024 HEARTWOOD HOUSE 112 11 li 111}I "ii Registered number: 05385733 Charity number: 1109947
HEARTWOOD HOUSE (A company limited by guarantee) Registered number: 05385733 Charity number: 1109947 HEARTWOOD HOUSE (A company limited by guarantee) TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THEYEAR ENDED 31 AUGUST2024
HEARTWOOD HOUSE (A company limited by guarantee) CONTENTS Page Reference and administrative details of the Company, its Trustees and advisers Trustees, report 2-12 Independent auditors, report on the flnanclal statements 13-16 Statement of flnanclal actlvltles 17 Balance sheet 18 Statement of cash flows 19 Notes to the financial statements 20-33
HEARTWOOD HOUSE (A company limited by guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THEYEAR ENDED 31 AUGUST2024 Trustees and Members G A Norris, Chair J I Storey S Jones A J Lenton T Webster. Ifice Chair S M Fishbum (Resigned 4 July 2024) K Barr (appointed 30 November 2023) R H Evans, Company Secretary Company registered number 5385733 Charity registered number 1109947 Registered office 13 Kenton Road Harrow Middlesex HA12BW Company secretary R H Evans Executive Headteacher C Haysom Bsc (Hons), PGCE, Msc Bankers CAF Bank Limited 25 Kings Hill Avenue Kingshill West Malling Kent ME19 4JQ
HEARTWOOD HOUSE (A company limited by guarantee) TRUSTEES, REPORT FOR THEYEAR ENDED 31 AUGUST2024 The Trustees present their annual report together with the audited financial statements of the Company for the 1 September 2023 ro 31 August 2024. The Annual report ser+4es the purposes of both a Trusiees, report and a direciors, report under company law. The Trustees confirm thai rhe Annual report and financial statements of the charitable company comply with the currenE sratutory requirements, the requirements of the charitable company's governing documenE and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019). Since the Company qualifies as small under section 382 of rhe Companies Act 2006, the Srrategic reporr required of medium and large companies under Ihe Companies Act 2006 (Strategic Report and Directors, Report) Regulations 2013 has been omitted. Introduction from the chair Having the privilege to be in my sixth year as Chair of the Board of Trustees, and ninth as a Trustee of this great organisation it gives me greai pleasure in introducing our 19ih Trusiees Reporr and Financial Statemenrs for rhe year ended 31sr August 2024. Firstly, I wish to formally record my grateful thanks to Sue Fishburn, who decided to step down as a Trusree after seven year's service. During this time, she has provided a wealth of support and advice on education and special needs matters, for which we are all very grateful. should also like to formally welcome Kevin Barr, as a Trustee to our charity. Kevin brings significant knowledge and experience of health & safety and risk across mulriple industries. Kevin's skills and empaihy wilh our charitable aims will be invaluable. This has been another extraordinary 12 months and much has been accomplished since my last report. Firstly, and most importantly, we have continued to provide education and support to students who have suffered extreme emotional or mental health rrauma. We have moved forward with Ihe opening of our second Cenire at Roxborough Road and our ofF-site provision is now full. We have invested in our stafF to ensure that we both arcract and retain high-caliber teachers and supporr staff/ therapists. This has been essential to ensure that we can provide the very best support to our students, and so that we can maintain and improve our organisation's impact and reach. illt9tr6> ',Q, ¢1>
HEARTWOOD HOUSE (A company limited by guarantee) Our hybrid offer, of Centre based tuition and support, combined with our off-site programme has been instrumental in helping our students re-engage with educaEion through a wide range of activities many of which are tailored ro each individual student's interests resulting in Ihe greatest impact on rhe quality of Iheir lives. It is a delighi and privilege to watch the progress our students make whilst they are with us and I commend each and every one of our stafF for the role they play in this journey. But what of our future strategy? The Trustees have worked very closely with Cathy Haysom, our Executive Headteacher, to reach rhe goals sei five years ago. Following the successful purchase of rwo properties last year, one in Kenton Road and a second in Roxborough Road, we can now provide permanenr facilities to support 60 students a year. Afrer this period of growrh our furure straiegy is co enier a period of consolidation, and to rebuild our reserves whilst embarking upon the introduction of a new metacognitive approach to education, which we feel is more suited to our students. We shall install new systems that will enable us to track student progress more effectively and we shall continue to strive to offer the best possible resources for our staff and students, building upon rhe success of recent years. At an Extraordinary General Meeting of Ehe TrusEees of Red Balloon Learner Cenrre NW London, held on 4 July 2024, the Trustees also decided it was in the best interest of our organisation to resign from The Association of Red Balloon Learner Centres. Whilst strongly supporting the Association's original aims and ethos, we felt it no longer fulfilled the aspirations of our Centre. To ensure a clean break, rhe Trustees passed a resolution, on 4th July 2024, to change our name to Heartwood House and to remove Red Balloon's name from our chariiable objeccs. Our ability to reach our strategic objective, to support 60 students a year in our own buildings, would not have been possible without the generosity of a number of individuals and organisations that have supported us for a considerable number of years. Their generosity has had a huge impact on boih our siudenis and siafF and for Ihis we are Iruly graieful. Once again, fundamental to our success has also been the loyalty and selfless commitment of; my fellow Trustees who have been fully committed to overcoming numerous challenges with a blend of humour and steely resolve; our Executive Headteacher and Senior Leadership Team for their determination and commitment to continuous development and steady growth; our staff who deploy their exiraordinary skills and experience to supporting our siudenis; and last but noi least, our donors for their incredible support. Our resolve and commitment to support and improve the lives of young people in our community is at the heart of what we do, and I look forward to 2025 and beyond, with confidence and optimism at Heartwood House. Geraldine Norris DL Chair of Trustees
HEARTWOOD HOUSE (A company limited by guarantee) OBJECTIVES AND ACTIVITIES Policies and objectives The objects of the charity as set out in the governing document is 'to advance the education of students aged 9 to 18 being students who are victims of bullying or by reason of other emotional trauma or illness are unable to attend mainstream school by providing tuiiion and appropriate support for them in a safe learning environmenr until rhey are ready to return to mainstream education and employmeni., The aim of the charity is the recovery of bullied children who have self-excluded from school because of severe bullying and/or who have suffered extreme emotional or mental health trauma. We provide an 'intensive care, full time education and support programme. Therapy and counselling are ofFered to studenis and families. In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'. b. Strategies for achieving objectives Our straiegy 2020 2025 is to secure the existing premises out of which we operate and 10 expand, increasing rhe number of studenrs we can support from 20 to 60. During rhis financial year, we have refurbished our second premises in Roxborough Road, which is close to our current operating base at Kenton Road, and our stafF and students have moved from their temporary, rented, facilities into their permanent home. The Trustees and Senior Leadership Team have made good progress with our srraregic plan and we have ended Ihe year with 60 studenrs on roll; 20 students are located in each of our two properties and 20 students are linked to our off-site provision. Main activities undertaken to further the Company's purposes for the public benefit Heartwood House provides an 'intensive care, full-time education for children (9 Eo18) who have been so Eraumarised by severe bullyin& physical violence, family breakdown, bereavement, rape etc. that they exclude themselves from school. There are few other purpose-made schemes to recover this group of children. More than half of the students at Heartwood House have artempted or'seriously considered, suicide. At Heartwood House they are provided with a safe environment with clear boundaries of behaviour and an individual full-iime academic, pastoral and Iherapeuric programme. Of the 6.1 million 10 to 17-year-olds in the UK, about three in one thousand is so anxious that slhe has left the mainstream educational system. This represents 16,500 children. There is significant demand for the services and support that Heartwood House provides. Heartwood House improves the skills and life opportunities of a group of socially isolated, confidence-lacking and ignored children. Heartwood House contributes to stronger communities by identifying and addressing the problem of seriously bullied children with the help of the community and for the benefit of the community.
HEARTWOOD HOUSE (A company limited by guarantee) ACHIEVEMENTS AND PERFORMANCE Achievements and performance Achievement and performance at Hearrwood House is measured by rhe increase in self-esteem and confidence of each student, in their understanding of themselves and others and in their recovery and return to mainstream or further education or employment. °I'm at peace now as My 50n is at a school that understands and cares for hirn. The last year or so have been very difficult for hirn at his previous school, as they did not help him. He now get5 UP and wants to go to school each morning. He is so much happier. Thank you.. Heartwood House operares from 08.30am - 4.30pm each day for 36 weeks of rhe year for all students. Overall attendance has been good during 2023124 with an average of 81Y.. Several older students who have fragile mental health issues have struggled with attendance affecting the average total for the year. All our students have shown significantly higher attendance figures than when they began attending our Centre and are now progressing towards full time atiendance. During the year the charity supported 60 (2022123: 58) students (27 boys and 33 girls), 22 students at Key Stage 3, 19 students at Key Stage 4 and 19 students at Key Stage 5. Some students struggled to attend full-time and so attended part-time. From these students 44 have remained with us for the 2024125 academic year, and 16 students have been successfully placed in further educarion, training or employmeni. Of our students, 15 students took a rigorous set of GCSE examinations. Almost all our students exceeded or met their predicted grade. "Thanks so much for all your help rhis week. You and the team have been wonderful. Today went really well. I think it's going to be such a good fit. It made me feel rather teary." 15 studenrs took GCSE examinations in up to seven subjects, three srudenrs achieved five or more GCSES at Grades 4 - 9 including English and Mathemarics. Five students achieved Grades 4 - 7 in both Mathematics and English. One student gained Grade 9 in GCSE English Literature and one student gained Grade 9 in English Language. Most students exceeded their predicted grades with three students exceeding their predicted grade in GCSE English Literature, seven studenis exceeding their predicted grades in English Language, 7 students exceeding their predicted grades in GCSE in Mathematics, three students exceeding their predicted grades in GCSE Combined Science, one student exceeding their predicted grade in Physics one student exceeding their predicted grade in GCSE Business Studies. "Thank you for making a difFerence in the world. From Ehe boEh of us." Five students took NCFE Art and Design examinations with two students passing Level 3 and two students also successfully passed Level l in Entry Level Certificate in Science. Five students passed examinations in Functional Skills in English whilst six students passed examinations in Functional Skills in Mathematics. These resulrs represeni a huge amount of hard work by students, reachers and support stafF/therapists. Heartwood House 15 not just about academic results and we provide a wide range of activities to encourage exercise, creativity and wellbeing. We offer a range of therapeuiic interventions including ari, music, integraiive, or dance movemenE by therapists who are also members of our stafF ream. On rhe ofF-sire programme we have an animal-assisted THRIVE practitioner who works with her dog and our SEudents can attend Learning Eo Listen, which is based in Hitchen and ofFers animal based therapy through a 1-2-1 coaching approach. Students benefit from the opportunity to access these therapies with their confidence and self-esteem improving as a result. In addition, pupils have access to community therapists who offer other types of rherapy such as lego, play, CBT eEC. Equine therapy is parEicularly good for students who have a diagnosis of ASD and high levels of anxieiy. Our therapy ieam has worked hard rhis year to improve rhe qualiry of Iheir sessions, and we have begun to offer group sessions and, where appropriate, family sessions. Students receive timetabled wellbeing sessions, which include activities such as yoga, meditation and taught social skills interventions. A comprehensive PSHE curriculum supports students in their understanding of key life issues and skills and equips them to deal with everyday life in the community. Our ourdoor education programme is based in Apsley and orher venues and occurs once a week. Activities include; climbin& canoein& bell-boating, map readin& building bee boxes and bird boxes, cooking over a fire, camping, navigation and much, much more.
HEARTWOOD HOUSE (A company limited by guarantee) Our off-site provision has gone from strength to strength and we ofFer our students a wide and varied curriculum including maths, English, Science, History, Geography, muliiple languages, social sciences, art, digiial art and politics. We have also done our besi to accommodate individual inceresrs such as; asironomy, coding, game design and music. Our srudents can atrend colleges that offer a 14+ programme for subjects such as animal care, outdoor education, hair and beauty, and horticulture on a day release basis. Our PE activities last year included badminton, swimmin& tae-kwon-do, horse riding, horse care, gym membership, personal rrainer, yoga, cycle clubs, fencing to name but a few. Extra-curricular opportunities available to our students change on an annual basis as we try to identify activities that our students will enjoy. This year we offered trips to the science museum, art galleries, photography exhibitions, a range of physical activities such as Ninja Warrior, outdoor acriviiies ar Horsenden Hill, Go Ape, trampolining and some more culrural activities such as the Brixton Cultural Archives, and a Pride Shakespeare trip. Heartwood House ofFers a very high level of pastoral intervention for all srudenis. All studenrs have a ruior whom Ihey see daily. SrafF are empathetic and supportive. This year, the focus of our School Development Plan has been; to help students understand and apply range of metacognitive techniques throughout their academic and personal sessions; to improve our srafF access to a range of ICT learning opportunities; to improve the progression and recording of non-academic progress made by students as well as encouraging our students to participate in sports within our community. All studenrs receive timetabled weekly careers sessions with a Transition Lead, who supporrs students wiih their Eransirion to furrher education which is something our students find particularly challenging. This supporE can range from a session exploring character attributes and suitable career choices, to a visit to a college open day, to supporting students to attend raster sessions at work experience placements. This year all of 15 of our leaving studenis were placed in further education, training or employmenr. When able, we also organised visits to museums, art exhibitions and the theatre. These trips are both curriculum and extra-curricular related. The success in achieving our aims can be aEEribuied ro rhe collaborative work of the Board of Trustees, the excellent leadership of the Headteacher and the outstanding teaching and support given by the stafF.
HEARTWOOD HOUSE (A company limited by guarantee) b. Financial review and key performance indicators KPI summary: 2024 (Q 2023 (£) Total income 2,520,471 2,163,495 Charitable expenditure 2.639,443 1,902,734 (Deficit)/Surplus for the year {118,971) 260,761 Net current (liabilities)lassets (290.902) {131,495} Cash bank 250,736 283,182 Total reserves 1.103.285 1,222.258 Trading income £2,436,816 (2023: £2,090,086) comprises fees received from Local Authorities, schools and parents to fund those studenis out of mainsiream education. Money from Local Authoriries is used to provide educarion in subjecrs of siudents, choice, therapy, wellbeing acriviEies, exiracurricular activities, meals, and adminisiration. All fees received support rhe Chariiable objecrives of Heartwood House. Total unrestricted donations received in the period were £60,715 (2023 £33,922). Toral resrricied donarions in the year were £nil (2023: £28,050) Fundraising activities and income generation Heartwood House is grateful to all those organisarions and individuals who have donated and volunteered time during the year. We should also like to express our appreciation to organisations, based in the area, who have helped us by allowing us 10 use their facilities. Fundraising activities are undertaken to supporr growth and non-academic activities. Finally, we should like to thank the funders and supporters who have coniributed to our strategy for growth. In particular we, should like to thank: The Leri Foundation The John Lyon's Foundation d. Investment policy and performance The Trustees, policy on investment is to retain the reserves in an interest bearing bank deposit account.
HEARTWOOD HOUSE (A company limited by guarantee) FINANCIAL REVIEW . Going concern After making appropriate enquiries, the Trustees have a reasonable expectation that the Company has adequare resources ro coniinue in operarional exisrence for the foreseeable fuiure. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies. b. Reserves policy The policy of Heartwood House is to maintain reserves of six months operating costs. This year we have achieved a reserve of seven (2023: 8) months. At the year end the charity had restricted reserrfes of £1,103,285 (2023: £1,222,258). The Trustees plan to increase the level of liquid assets supporting the reserves figure over the next three years. The policy of Heartwood House is to maintain a level of reserves that should be sufFicient to: Sustain activity in the event of an unexpected short-term drop in income Allow orderly reorganisation of activities to cope with any long-term drop in income Provide for a reasonable risk of increased costs Ensure Heartwood House has sufficienr resources ro meer legal liabiliries b) d) These requirements are not cumulative, and the reserves necessary to meet one scenario may well be sufFicient to meet another. The Reserves Policy has been set to establish a level of reserves which minimizes the risk of serious disruption to Heartwood House's work whilst funding as much charitable activity as possible. It is therefore assumed thai the last of the requirements will be met Ihrough achievemeni of the orher Ihree. Principal risks and uncertainties Heartwood House has a Risk Register which is reviewed annually by Trustees. The top five key risks have been identified as: Health & Safety risk in our Centres. Mitigated by regular reviews of risk assessments which are version controlled and dared. Risk Assessmenis are checked againsc accidenr and incident data co ensure Ehe potential for recurrence of injuries is addressed within the Risk Assessment itself to remain current and relevant. Any significant injury or dangerous occurrence will trigger a review. Strate8ic/fianncial risk, such as loss of major source of income via EHCP placements. Mitigated by investigating alternative methods of funding. Scaling back services / possible redundances. Headieacher to ensure funding is continually drawn for a selection of difFerenc Local Authorities to prevent reliance on one funding source. Operational risk, such as insufficiently robust cyber security. Mitigated by ensuring securiry, encryption and backup procedures are adhered to. Ensuring no data is stored offline on devices and all data is stored on Google Drive. Passwords are secured and changed regu larly. Human Resources risk such as the loss of key staff. Mitigated by succession planning wirh trained deputies in place for key roles (particularly HR, Centre Business Managers and SENCO). Human Resources risk such as loss of key knowledge. Mitigated by sharing knowledge Ihrough regular team meetings. Work filed regularly and correcrly. Written procedures keep up to date and succession planning.
HEARTWOOD HOUSE (A company limited by guarantee) STRUCTURE, GOVERNANCE AND MANAGEMENT Constitution HearEwood House is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association. Company Number $385733 The Company is constitured under a Memorandum of Association dared 8ih March 2005 and Articles of Association dated 9ih February 2005. Heartwood House is also a standard charity. Charity Number1109947. The Charity is governed by the same Memorandum and Articles of Association incorporated on 8th March 2005. The charity was registered on 9rh June 2005. The charity changed its name to Heartwood House from Red Balloon Learner Centre NW London on 4th July 2024. b. Methods of appointment or election of Trustees The management of Heartwood House is the responsibility of rhe Trusiees who are elected under Ihe terms of rhe Arricles of Association. The Board seeks potential Trustees whose relevant experience such as human resources, finance or education is required, using an external agency. In some cases a person will approach the organisation expressing an interest to become a Trustee. Potential Trustees are invired 10 interview with at least Iwo Trusiees and Ihe Executive Headreacher. These Trusiees will rhen make a recommendation about rhe appoincmenE at a full Trustee meeEin& when all Trustees are asked 10 approve the recommendation. No person, company or external body other than the Trustees is entitled to appoint a Trustee. Trusrees are inducied in accordance with Deparcmeni for Educaiion recommendarions. Safeguarding rraining is mandatory and all Trustees review and approve CenEre policies.
HEARTWOOD HOUSE (A company limited by guarantee) Organisational structure and decision-making policies The Charity operates from two locations 13 Kenton Road, and 39 Roxborough Road in Harrow, NW London. The Execuiive Headteacher oversees stafF with responsibility for education, wellbein& administration and housekeeping. Day-to-day decisions are made by the Executive Headteacher, who will refer to the Chair of Trustees, the Finance Trustee, the Safeguarding Trusree or oiher Trustees for advice and guidance if necessary. The Board ofTrustees meet formally at least twice a term (every six - eight weeks), when they receive and discuss written reports from the Executive Headteacher, Finance Trustee and other Trustees responsible for matters of compliance. Strategy and major project proposals are brought to the attention of the Trustees, discussed and decisions made. At each meeting rhe Chair asks the Trustees to identify any potential conflict of interest. d. Pay policy for key management personnel The Trustees have developed a pay policy that identifies a set of pay bands taking into account level of responsibility, qualifications and experience. Pay is set with respect to prevailing market rates for education and charities; thereafter the Trustees decide on pay change taking into accounr performance of Ihe individual and of the charity, inflation levels, London living and any changes in their responsibility or in their working week. Performance reviews take place for all staff every year and areas of professional development agreed and subsequently implemented. . Membership of Heartwood House The Articles of Association siaie thai by holding rhe role of a Director all current Direcrors are also Members. Three Members are required for a quorum. Every Member - person or organisation - only has one vote. Any organisation who is a member may nominate a representative and provide written notice to the charity providing evidence that they have the authority ro vole on behalf of the organisaiion. There are no 'organisaiion' Members of Heartwood House. FUNDS HELDAS CUSTODIAN The charity does not hold and does not intend to hold any funds as custodian. MEMBERS, LIABILITY The Members of the Company guarantee to contribute an amount not exceeding £10 to the assets of the Company in the event of winding up. MANAGEMENT The Board of Trustees, in consultation with the Executive Headteacher, make decisions on stafFin& budgeting and professional development. Trustees and stafF participaie in fundraising with the annual aim of raising berween £IOK 10 £20K per year, wirh any monies raised being used to support the provision of ex-curricular aciivities, to buy resources, equipmenE and to cover the cosr of essential repairs and maintenance. Trustees and staff need to raise local awareness of the need for children who have been so severely bullied that they cannot attend mainsiream school. The aim is ro draw aiieniion to the fact rhat such children should be provided wirh full-rime educarion and Hearrwood House offers this service. This is addressed through engaging wiEh local authoriries, schools, businesses and through volunteers who fundraise for us. 10
HEARTWOOD HOUSE (A company limited by guarantee) This year Ihe school has been full our capacity is 60 full-rime equivalent students. The Trustees ideniified Ewo areas of concern and for Ehese reasons the Executive Headteacher and Trustees have worked hard to meet the needs of our community whilst exploring how to expand the provision of the Centre: The Centre is currently full and demand for places is significant. The Executive Headteacher presented a business plan to the Trustees for the creation of a second Centre in 2020 and with Trustee approval suirable property was identified in spring 2021. An ofFer was accepced by the vendor in June 2021 and planning approval for change of use was obtained in October 2022. The global Covid-19 pandemic impacted this project and a temporary second Centre was secured through the leasing of a second properry, 3 Churchill Court, in Norih Harrow. Purchase of Ihe second properry, based in Roxborough Road, was compleied on 31sr Augusi 2023. A fii-our commenced in Seprember 2023 and students and stafF moved into Ihe new permanent building in January 2024. Provision during the year: This year 60 students were on roll ai the sta of rhe academic year, wirh 20 arrending Ehe Cenrre in person at 13 Kenton Road and 20 students attended in person at 3 Churchill Court before moving to Roxborough Road. 20 students supported via outreach. The Executive Headteacher is responsible for all aspects of the organisation's work. She is supported by a Centre Head at both Kenton Road and Roxborough Road, an off-siie provision lead, an adminisiraior and a ream of teachers, therapists, and support srafF. Both Centre Heads are supporred by a depuiy and a Eeam of teachers, rherapisrs, and support staff. This provision is continuously reviewed to ensure the level of stafFin8 is appropriate for the number of students. All roles including Trustees and volunteers are DBS checked. "I'm so happy with what you have all done with her. She is a changed person and actually wants to come into school." "I want you to know how happy I am that he's in this position,18 months ago he was not attending school and doing a small amount of English and Maths - having the opportunity to realise his potential is a gift and I'm grateful for everything 'I'd like to thank you and Ed for all your support since my son started with you, I finally feel settled knowing that he is getting the support he needs and especially as he's taken to it all so well." "Well done to you. Someone doing everything they can to look out for my daughter means the absolute world to me." 11
HEARTWOOD HOUSE (A company limited by guarantee) STATEMENT OF TRUSTEES, RESPONSIBILITIES The Trustees (who are also the directors of the Company for the purposes of company law) 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). Company law requires the Trustees 10 prepare financial staiements for each financial . Under company law, the Trustees musr not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to: select suirable accounting policies and then apply them consistenrly; obser+4e the methods and principles of the Charities SORP (FRS 102); make judgments and accounting estimates that are reasonable and prudent; state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements; prepare the financial SEarements on the going concern basis unless ir is inappropriare ro presume Ihat the Company will coniinue in business. The Trustees are responsible for keeping adequare accounring records rhar are sufficient ro show and explain Ihe Company's transactions and disclose with reasonable accuracy aE any time rhe financial position of che Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. DISCLOSURE OF INFORMATION TOAUDITORS Each of the persons who are Trustees at the time when this Trustees, report is approved has confirmed that: So far as thar Trusree is aware, there is no relevant audit information of which rhe charity's audirors are unaware, and that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that information. AUDITORS The auditors, MWS, have indicated their willingness ro continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees. Approved by order of Ihe members of the board of Trustees on l May 2025 and signed on rheir behalf by: L Nbms Geraldine Norris DL Chair of Trustees 12
HEARTWOOD HOUSE (A company limited by guarantee) Opinion We have audited the financial siarements of Heartwood House (the 'charitable company,) for the year ended 31 August 2024 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Siandard 102 'The Financial Reporting Siandard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepied Accounting Practice). In our opinion the financial statements: give a true and fair view of the state of the charitable company's affairs as at 31 August 2024 and of its incoming resources and application of resources, including irs income and expendirure for Ihe year then ended; have been properly prepared in accordance with Uniced Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Charities Act 2011. 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 furiher described in the Auditors, responsibilities for the audit of the financial siatements secrion of our reporr. We are independent of Ihe charitable company in accordance with the erhical requirements that are relevant Eo our audii of the financial statements in Ehe United Kingdom, including the Financial ReporEing Council'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 charitable company'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 secEions of this report. 13
HEARTWOOD HOUSE (A company limited by guarantee) Other information The other information comprises the information included in the Annual report other than the financial statements and our Auditors, 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 noi express any form of assurance conclusion thereon. Our responsibiliry is 10 read the oiher informaiion and, in doing so, consider whether the other information is materially inconsisrent with the financial starements 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstaiemenr of this other information, we are required 10 report rhat 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 (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion: the information given in Ihe Trustees, report is inconsistent in any material respecr with che financial siarements; or sufficient accounting records have not been kept; or the financial statements are not in agreement with the accounting records and returns; or we have not received all the information and explanations we require for our audit. Responsibilities of trustees As explained more fully in the Trusiees, responsibilities siatement, the Trusiees (who are also the direcrors of the charitable company for Ihe purposes of company law) are responsible for rhe preparation of rhe financial sraiements and for being sarisfied thaE they give a crue 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 charitable company's abiliiy ro continue as a going concern, disclosin& as applicable, matters related to going concern and using the going concern basis of accounring unless the Trustees either intend to liquidate the chariiable company or to cease operations, or have no realistic alternative but to do so. Auditors, 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 the Act and relevant regulations made or having effect thereunder. Our oblectives 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 Auditors, 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 misstatemeni when it exisrs. Missiatements can arise from fraud or error and are considered maierial if, individually or in the aggregate, they could reasonably be expected to influence Ihe economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibiliries, ourlined above, to deteci material missrarements in respeci of irregulariiies, including fraud. The exienr to which our procedures are capable of detecting irregularities, including fraud is detailed below: We obtained an understanding of the legal and regulatory frameworks applicable to the Company and the industry in which it operates. We determined that the following laws and regulations were most significant: the Companies Act 2006, Safeguarding (including statutory guidance Keeping Children Safe in Education), employment law and public secior pay and condiiions. We enquired of management to obtain an understanding of how rhe Charity is complying with Ehose legal and regulatory frameworks and whether they had any knowledge of actual or suspected fraud. We corroborated the results of our enquiries through our 14
HEARTWOOD HOUSE (A company limited by guarantee) review of the board minures for Ehe year. We did not ideniify any mailers relating 10 maierial non compliance with laws and regulation or matters in relation to fraud; as non-material breaches would not normally be communicated within this reporr. We obtained an understanding of how the Company is complying with those legal and regulatory frameworks by making inquiries of management and those responsible for legal and compliance procedures; In assessing the potential risks of material misstatement, we obtained an understanding of the Company's operations, including its objectives and strategies to understand the expected financial statement disclosures and business risks that may result in risks of material misstatement; In assessing the appropriateness of the collective competence and capabilities of the engagement team, the engagement partner considered the engagement team's: understanding of, and practical experience with, audit engagements of a similar nature and complexity through appropriate training and participaiion rhe specialisr skills required and knowledge of the industry in which Ihe clieni operates. We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included: assessing the design effectiveness of controls management has in place to prevent and detect fraud; challenging assumptions and judgements made by managemenc in its significant accounting estimates; identifying and testing journal entries, in particular manual journal entries made at year end for financial statement preparation; and assessing the extent of compliance with the relevant laws and regulations as part of our procedures on the related financial srarement item. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely ro become aware of insrances of noncompliance. The risk is also greater regarding irregularities occurring due to fraud rather rhan error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financial siatements is located on the Financial Reporting Council's websiie at: www.frc.org.uk/auditorsresponsibilities. This descripiion forms parr of our Audiiors, report. 15
Docusign Envelope ID: FA8BED56-29DE-43EE-9B5F-E418C76AF064
Jonathan Gorridge FCA MWS Chartered Accountants Registered Auditors 4 Chester Court, Chester Hall Lane Basildon, Essex SS14 3WR
24 May 2025
HEARTWOOD HOUSE (A company limited by guarantee) STATEMENT OF FINANCIALACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THEYEAR ENDED 31 AUGUST2024 Restricted funds 2024 Unrestricted fvnds 2024 Total funds 2024 Total funds 2023 Note Income from: Donations and legacies 14,212 60.715 74,927 71.301 Charitable activities 2.436.816 7.868 2.444.684 2,090,897 Investments 861 861 1.294 Total income Expenditure on: Charitable activities 2.639.443 2.639,443 1,902,734 Total expenditure Net (expenditure)fincome (188.415) 69.444 {118.971) 260,758 Transfers between funds 15 69.443 (69,443) Net movement in funds Reconciliation of funds: Total funds brought forward 1.222.257 1.222.257 961,499 Net movement in funds {118.972) (118,971) 260,758 Total funds carried forward The Statement of financial activities includes all gains and losses recognised in the year. The notes on pages 19 to 34 form part of these financial statements. 17
HEARTWOOD HOUSE (A company limited by guarantee) BALANCE SHEET ASAT AUGUST 2024 2024 2023 Note Fixed assets Tangible assets 11 2,310,335 2.297,715 2.310.335 2,297,715 Current assets Debtors 12 79.015 525,274 Cash at bank and in hand 250.736 283.182 329.751 808.456 Creditors: amounts falling due within one year 13 (620.653) (939.951) Net current liabilities (290,902) (131,495) Total assets less current liabilities Creditors: amounts falling due after more than one year 2.019.433 2.166.220 14 (916.148) (943,963) Net assets excluding pension asset 1.103.285 1,222.257 Total net assets Charity funds Restricted funds 15 1.103.285 1,222.257 Unrestricted funds 15 Total funds The entity was entitled to exemption from audit under section 477 of the Companies Act 2006. The members have not required the entity to obtoin an audit for the year in question in accordance with section 476 of the Companies Act 2006. However. an audit is required in accordance with section 144 of the Charities Act 2011. The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements. The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime. The financial statements were approved and authorised for issue by the Trustees on 01 May 2025 and signed on their behalf by: "WL Nbms Geraldine Norris DL Chair of Trustees The notes on pages 19 to 34 form part of these financial statements. 18
HEARTWOOD HOUSE (A company limited by guarantee) STATEMENTOF CASH FLOWS FOR THEYEAR ENDED 31 AUGUST2024 2024 2023 Cash flows from operating activities Net cash used in operating activities 29,403 1.849.139 Cash flows from investing activities Purchase of tangible fixed assets (83,885) (1,342,300) Net cash used in investing activities (83.885) (1.342,300) Cash flows from financing activities Cash inflows from new borrowing (966,000) Repayments of borrowing 83.285 Loan interest (61.248) Net cash provided by/(used in) financing activities 22.037 (966.000) Change in cash and cash equivalents in the year (32,445) (459.161) Cash and cash equivalents at the beginning of the year 283.181 742,342 Cash and cash equivalents (rt the end of the year The notes on pages 19 to 34 fonn part of these financial statements 19
HEARTWOOD HOUSE (A company limited by guarantee) General Information Heartwood House is a company limited by guarantee and incorporated in England. It is also a registered charity, number1109947. Its registered address is 13 Kenton Road, Harrow, Middlesex, HAI 2BW. Accounting policies 2.1 Basis of preparation of financial statements The financial statements have been prepared in accordance with the Charities SORP (FRS 102) Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in rhe UK and Republic of Ireland (FRS 102) (efFective l January 2019), the Financial Reporring Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Heartwood House meets the definiiion of a public benefir entity under FRS 102. Assers and liabiliiies are inirially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. 2.2 Going concem The charity had a deficit on its available restricted funds at 31 August 2023 of £109,457. After making appropriate en9uiries the Trusrees have a reasonable expectarion rhat Ihe Company has adequare resources ro continue in operational exisrence for the foreseeable future. The Company has guaranteed income from Local Authorities for the provision of services and has a full complement of students for Ehe 2023124 academic year and is currently 90% full for che 2024125 academic year. TheTrustees have also considered Cash Flow Forecasis for Ihe current and next financial year. For this reason, rhey coniinue ro adopt Ihe going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern masis can be found in Ihe accounting policies. 2.3 Income All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes bur not expended during rhe period is shown in the relevant funds on Ihe Balance sheei. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where eniiilement occurs before income is received, the income is accrued. Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable. Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on com pletion of the service. 2.4 Expenditure Expenditure is recognised once Ihere is a legal or constructive obligation to Iransfer economic benefir to a third party, ir is probable that a transfer of economic benefits will be required in seitlement and the amount of the obligation can be measured reliably. Expenditure is classified by aciivity. The costs of each acrivity are made up of Ehe Eotal of direct costs and shared costs, including support cosrs involved in undertaking each acriviry. Direci costs atrriburable ro a single acrivity are allocated direcrly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single acEivity are apportioned between those activities on a basis consistent with the use of resources. Central srafF costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use. Expenditure on charitable activities is incurred on direcrly undertaking the activities which further the Company's objectives, as well as any associated support costs. All expenditure is inclusive of irrecoverable VAT. 2.5 Government grants Government grants relating to tangible fixed assets are treated as deferred income and released to the Statement of financial actiVlEies over the expected useful lives of Ihe assets concerned. Other grants are credited to the Siaiement of financial acrivities as the related expenditure is incurred. 20
HEARTWOOD HOUSE (A company limited by guarantee) 2.6 Interest receivable Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Company; this is normally upon notificarion of the interest paid or payable by the institution with whom Ihe funds are deposited. 2.7 Tangible fixed assets and depreciation Tangible fixed assets costing £3,000 or more are capitalised and recognised when future economic benefiES are probable and the cost or value of the asset can be measured reliably. Tangible fixed assets are initially recognised ar cost. After recognirion, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost. Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using che straight-line meihod. Depreciation is provided on the following basis: Freehold property 2 % straight line Fixtures and fittings 25 % straight line 2.8 Debtors Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amouni prepaid net of any trade discounts due. 2.9 Cash at bank and in hand Cash at bank and in hand includes cash and shorr-rerm highly liquid investmenrs wilh a short maturity of three monEhs or less from rhe dare of acquisition or opening of the deposit or similar account. 2.10 Liabilities and provisions Liabiliiies are recognised when there is an obligation ar rhe Balance sheer dare as a resuli of a past event, it is probable rhat a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabiliiies are recognised ai Ihe amount thar Ihe Company anricipates ir will pay ro serrle the debi or the amounr ir has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Staiement of financial activiiies as a finance cost. 2.11 Financial instruments The Company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured ar their settlement value with Ehe exception of bank loans which are subsequently measured ai amorrised cost using the effective inierest method. 2.12 Pensions The Company operates a defined contribution pension scheme and Ehe pension charge represenis Ehe amounts payable by the Company to the fund in respect of the year. 2.13 Fund accounting General funds are unrestricred funds which are available for use ai rhe discretion of Ihe Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each resiricted fund is set out in Ihe notes ro the financial staiemenis. Receipcs from local authoricies are Ireated as restricted funds as Ihey are paid in relation to specific siudents, alrhough Ehey are non-refundable in the event a siudent leaves the school. These receipts are provided on the basis that rhey are available to fund any activities in furtherance of the charity's objects. Investment income, gains and losses are allocated to the appropriate fund. 21
HEARTWOOD HOUSE (A company limited by guarantee) Income from donations and legacies Restricted funds 2024 Unrestricted funds 2024 Total funds 2024 Donations 60,715 60,715 Government grants 14.212 14.212 Total 2024 Restricted funds 2023 Unrestricted funds 2023 Total funds 2023 Donations 28.050 33,923 61.973 Government grants 9,329 9,329 Total 2023 Income from charitable activities Restricted funds 2024 Unrestricted funds 2024 Total funds 2024 Income from charitable activities Restricted funds 2023 Unrestricted funds 2023 Total funds 2023 Income from charitable activities 22
HEARTWOOD HOUSE (A company limited by guarantee) Investment income Unrestricted funds 2024 Total funds 2024 Investment income Unrestricted funds 2023 Total funds 2023 Investment income Analysis of expenditure on charitable activities Summary by fund type Restricted funds 2024 Total 2024 Education Unrestricted funds 2023 Restricted funds 2023 Total 2023 Education 23
HEARTWOOD HOUSE (A company limited by guarantee) Analysis of expenditure by activities Activities undertaken directly 2024 Support costs 2024 Total funds 2024 Educcrtion Activities undertoken directly 2023 Support costs Total funds 2023 2023 Educcrtion Analysis of direct costs Total funds 2024 Education 2024 Staff costs 1.249,323 1,249,323 Direct educational costs 1,013.293 1.013.293 Training and recruitment 32.150 32,150 Total 2024 Total funds 2023 Education 2023 Staff costs 926,594 926,594 Direct educational costs 663,396 663,396 Training and recruitment 22,655 22,655 Total 2023 24
HEARTWOOD HOUSE (A company limited by guarantee) Analysis of expenditure by activities (continued) Analysis of support costs Education 2024 Total funds 2024 Staff costs 53,465 53,465 Depreciation 69,091 69,091 Bank charges 60 60 Accountancy 7,990 7,990 Repairs and maintenance 54,902 54,902 Utilities 13,999 13,999 Legal and professional fees 19,134 19.134 Insurance 3,384 3,384 Rent and rates 46,996 46.996 Bookkeeping 16,801 16,801 Loan interest 58,855 58.855 Total 2024 During the year the charity incurred govemance costs of £7.990 (2023: £7.260). Education 2023 Total funds 2023 Staff costs 45,844 45,844 Depreciation 18.498 18,498 Bank charges 1,472 1,472 Sundry expenses 714 714 Accountancy 7,260 7,260 Repairs and maintenance 15.452 15,452 Utilities 10,860 10,860 Legol and professional fees 99.530 99,530 Insurance 14,079 14,079 Rent and rates 60.787 60.787 Bookkeeping 13,200 13.200 Loon interest 2.393 2,393 Total 2023 25
HEARTWOOD HOUSE (A company limited by guarantee) Auditors renumeration 2024 2023 Fees payable to the Company's auditor for the audit of the Company's annual accounts StafF costs 2024 2023 Wages and salaries 1,031,018 875.116 Social security costs 95.223 78,242 Contribution to defined contribution pension schemes 176,547 19.080 One payment of £1,232 was made for redundancy during the year and has been accounted for in full. The average number of persons employed by the Company during the year was as follows: 2024 2023 No. Management Teaching and education 28 26 Admin and premises The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was: 2024 2023 In the band £60,001- £70,000 Remuneration paid to Key Management Personnel due the year amounted to £226.522 (2023: £176,716) including £197,508 {2023: £172.677) of gross pay and £29,044 (2023: £4,039) of employer's pension contributions. 26
HEARTWOOD HOUSE (A company limited by guarantee) 10. Trustees, renumeration and expenses During the year, no Trustees received any remuneration or other benefits (2023- £NIL-). During the year ended 31 August 2024. expenses totalling £79 were reimbursed or paid directly to 2 Trustees (2023 £11 to 1 Trustee). Expenses related to travel and postage. 11. Tangible fixed assets Freehold property Fixtures and fittings Total Cost or valuation At I September 2023 2.291,948 50,535 2.342,483 Additions 83.885 83.885 At 31 August 2024 2.291,948 134.420 2.426.368 Depreciation At I September 2023 14.000 30.768 44,768 Charge for the year 45.839 25.426 71.265 At 31 August 2024 59,839 56.194 116.033 Net book value At 31 August 2024 At 31 August 2023 12. Debtors 2024 2023 Due within one year Trade debtors 60.544 468,292 Other debtors 170 170 Prepayments and accrued income 18.301 56,812 27
HEARTWOOD HOUSE (A company limited by guarantee) 13. Creditors: Amounts falling due within one year 2024 2023 Other loans 27,815 22,037 Trade creditors 21.266 20,221 Other toxation and social security 24.037 21.919 Pension creditor 18.733 4,153 Other creditors 564 1.360 Accruals and deferred income 528.238 870,261 2024 2023 Deferred income at I September 2023 801,316 597,781 Resources deferred during the year (801.316) 801,316 Amounts released from previous periods 519,948 (597.781) Deferred income comprises fees raised in advance of entitlement 14. Creditors: Amounts falling due after more than one year 2024 2023 Bank loans Of the above loans, £522.000 is secured upon the Kenton Road proprty 28
HEARTWOOD HOUSE (A company limited by guarantee) 15. Statement of funds Statement of funds - current year Balance at I September 2023 Income Expenditure Transfers tn/ out Balance at 31 August 2024 Unrestricted funds Generol Funds - all funds Restrirted funds Fee income (109.459) 1436.816 (2.492.719) (97.727) (263.089) Pupil premium and gov grants 14.212 (14.212) Property and other assets 2,297.716 (71.264) 83.885 2.310.337 Property loans (966,000) (61,248) 83,285 (943,963) 1,222.257 1451.028 (2,639.443) 69.443 1,103,285 Total of funds Restricted fee income fund is for income raised for the purposes of education in line with the charitable objects. Property and other assets relates to assets held by the charity. Property loans are the value of long term loans to fund the property purchases. Statement of funds - prior year Balance at 1 September 2022 Income Expenditure Transfers in/ out Balance at 31 August 2023 Unrestricted funds General Funds - all funds Balonce ot I September 2022 Income Expenditure Tronsfers in/ out Balance at 31 Au9USt 2023 Restricted funds Restricted donations 28,050 (28,050) Fee income 957,589 2,090,086 (1,864,642) (1,292,491) (109,458) Pupil premium and gov grants 9,329 (9,329) Property and other assets 2,297.715 2,297,715 Property loans (966.000) (966.000) 957,589 2,127,465 (1.902,021) 39,224 1,222.257 Total of funds 29
HEARTWOOD HOUSE (A company limited by guarantee) 16. Income from charitable activities Summary of funds - current year Balance at I September 2023 Income Expenditure Transfers in/ Balance at 31 out August 2024 General funds 69.443 (69.443) Restricted f unds 1,222,257 2,451,028 (2,639,443) 69,443 1,103,285 Summary of funds - prior year Balance at I September 2022 Income Expenditure Transfers in/ out Balance at 31 August 2023 General funds 3,910 36,027 (713) (39,224) Restricted f unds 957.589 2.127,465 (1,902.021) 39.224 1.222,257 17. Transfers between funds £83,885 was transferred from restricted fee income funds to the restricted asset fvnd representing purchases of asset during the year. £83.285 was transferred from the restricted fee income fund to the restricted loan fund representing repayment of loans during the year. £69,443 was transferred from the unrestricted fund to the restricted fee income fund to cover costs ultimately covered by this fvnd. 30
HEARTWOOD HOUSE (A company limited by guarantee) 18. Analysis of net assets between funds Analysis of net assets between funds ~ current period Restrirted funds 2024 Total funds 2024 Tangible fixed assets 2.310.335 2,310,335 Current assets 329.751 329.751 Creditors due within one year (620,653) (620.653) Creditors due in more than one year (916, 148) (916.148) Total Analysis of net assets between funds - prior period Restricted funds 2023 Total fvnds 2023 Tangible fixed assets 2,297.715 2,297,715 Current assets 808.455 808,455 Creditors due within one year (939,951) (939,951) Creditors due in more than one year (943,963) (943,963) Other Total 19. Reconciliation of net movement in funds to net cash flow from operating activities 2024 2023 Net incomelexpenditure for the period (as per Statement of Financial Activities) (118,971) 260,758 Adjustments for Depreciation charges 71,264 18,497 Decrease in debtors 446.260 323,118 Increase/(decrease) in creditors {347.113) 1.246,766 Loan repayments (83.285) Loan interest 61,248 Net cash provided by operating activities 31
HEARTWOOD HOUSE (A company limited by guarantee) 20. Analysis of cash and cash equivalents 2024 2023 Cash in hand 250.736 283,181 Total cash and cash equivalents 21. Analysis of changes in net debt Atl September 2023 Other non-cash changes At31 August 2024 Cash flows Cash at bank and in hond 283.182 (32.446) 250,736 Debt due within l year (26,190) (20.357) {46,547) Debt due after l year (943,963) 61,248 (33,433) (916,148) 22. Pension commitments The group operates a defined contribution pension scheme. The assers of the scheme are held separarely from Ihose of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £176,546 (2023: £19,080. £18,732 (2023: £4,153) were payable to the fund at the balance sheet date and are included in cred itors. 23. Operating lease Commitments At 31 August 2024 the Company had commitments to make future minimum lease payments under non-cancellable operating leases as follows: 2024 2023 Not later than l year 894 48,370 Later than l year and not later than 5 years 2.529 43,815 The following lease payments have been recognised as an expense in the Statement of financial activities: 2024 2023 Operating lease rentals 27.395 14,814 32
HEARTWOOD HOUSE (A company limited by guarantee) 24. Members, Liability Each member of the charitable company undertakes to contribute to che assets of the company in the evenr of it being wound up while he/she is a member, or within one year after helshe ceases to be a member, such amount as may be required, not exceeding £10 for the debts and liabilities contracted before he/she ceases to be a member. Related party transactions The Company has not entered into any related parry transaciion during the year, nor are there any outstanding balances owing between related parties and the Company at 31 August 2024. 33