## **HAWTHORNE TRUST LIMITED**
(A Company Limited by Guarantee)
INCORPORATING
## **THE VISITING CHRISTIAN SCIENCE NURSE SERVICE, LONDON FIELD**
## **FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED**
**30 SEPTEMBER 2020**
**Company Number: 293710 Charity Number: 209230**
HAWTHORNE TRUST LIMITED GENERAL INFORMATION
|Charity Registration Number|209230|
|---|---|
|Company Registration Number|293710|
|Governing Instrument|Memorandum and Articles of Association dated 7th October 1948, as amended.|
||The principal aim is to provide nursing care based on Christian Science principles.|
|Directors (Trustees)|Mr B Blandford|
||Mrs M Chaplin|
||Mr J Weaver|
||Mrs G A Smith (Appointed 16/01/2020)|
|CEO/Administrator|Mrs E P Lawal|
|Registered Office|Charton Manor|
||Gorse Hill|
||Farningham|
||Kent DA4 0JT|
|Independent Auditors|Haysmacintyre LLP|
||Chartered Accountants|
||Statutory Auditors|
||10 Queen Street Place|
||London EC4R 1AG|
|Bankers|Lloyds Bank Plc|
||130 The Broadway|
||Bexleyheath|
||Kent DA6 7DP|
|Investment Powers|Provisions of Trustee Act 2000, as amended, apply.|
|Investment Managers|Investec Wealth & Investment Ltd|
||30 Gresham Street|
||London EC2V 7QN &|
||Sanlam Private Investments (UK) Ltd|
||16 South Park Sevenoaks|
||Kent TN13 1AN|
|Solicitor|Stone King|
||Boundary House|
||91 Charterhouse Street|
||London|
||EC1M 6HR|
|Insurance Brokers|Arthur J. Gallagher Insurance Brokers Limited|
||Temple Circus House|
||Temple Way|
||Bristol|
||BS1 6HG|
HAWTHORNE TRUST LIMITED
Page 1
TRUSTEES' ANNUAL REPORT
The Directors (Trustees) known as the Board have the pleasure of presenting their annual report and audited financial statements of Hawthorne Trust Limited (HTL) known as the Company for the year ended 30th September 2020.
## **REFERENCE AND ADMINISTRATION DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISORS**
Details of the current directors and advisors are shown under General Information.
## **MISSION AND OBJECTS**
Our mission is: "Loving to heal the Christ way."
The objects for which the Company is established are to provide and maintain in England a Christian Science House being a nursing home operated in accordance with the practice and principles of the body known as the Church of Christ, Scientist.
## **REGULATORY BASIS**
The principal activity of the Company continues to be the operation of a Christian Science nursing care home known as Charton Manor registered with the CQC as a ‘care home not providing medicines or medical treatment’. We also operate the Visiting Christian Science Nursing Service (VCSNS) which is registered with the CQC as a Domiciliary Care Agency. The glowing reports received from those who have received either of our Christian Science nursing services are proof of their utility.
HTL is affiliated to the Association of Organizations for Christian Science Nursing and is accredited by The Commission for Accreditation of Christian Science Nursing Organizations/Facilities Inc. in the USA which sets the high standards of our Church for Christian Science nursing. The Commission reviews each Christian Science nursing facility every three years and our current accreditation is valid until 31 March 2021.
We offer a residential Assisted Living (AL) provision for Christian Scientists who have been actively engaged in church work over a long period. This programme provides invaluable support and encouragement for the metaphysical basis of the healing work undertaken at Charton Manor.
We also offer "Rest and Study" where paying guests can be free of day-to-day concerns in order to find refreshment and renewed inspiration through prayer.
We continue to operate a Christian Science Nurses’ Training Centre, whereby to increase the pool of Christian Science nurses available to further the healing mission of our Church.
We operate as a charity and are registered with the Charity Commission. We do not engage in significant publicity or in any fundraising from the general public, as we derive our income from the payment of fees, income from investments and bequests, and generous donations from churches and supporters of our ministry. Consequently we do not participate in any fundraising regulation scheme.
Our entire infrastructure is focussed on supporting the healing practice of Christian Science.
## **ACHIEVEMENTS AND PERFORMANCE**
Our aim, as ever, at the start of the financial year was to maintain the high standards of Christian Science nursing at Charton Manor; to provide excellent facilities for our residents, patients, guests and staff; and to continue our training programme for Christian Science nurses - and to achieve these aims within our budget. This we did, despite some difficult business conditions caused by the Corona pandemic.
Our team of Christian Science nurses has worked tirelessly to provide for our patients’ and residents’ needs and good healing has been witnessed. The VCSNS has also been very busy with nursing care cases following the trend of individuals preferring to remain in their own homes whilst being cared for by a Christian Science nurse. On occasion, our VCSN has visited Christian Scientists well beyond the radius of the London Field. When busy, our VCSNS covers its costs.
Charton Manor can call on the services of external "Private Duty" Christian Science nurses, as well as those Christian Science nurses employed by HTL. We have been grateful during the year to have had two additional Christian Science nurses working with us on furlough from the Christian Science care facility in Wales, Springfield House. We are indeed grateful for the links we have with this House and our other sister facility Lime Tree House in Greater Manchester.
We have an Activities Co-ordinator who organises in-house "church services", concerts, hands-on activities such as art and craft work, dancing and visits by speakers, in many cases supplied by volunteers who love the House and its mission. Such activities have had to change their character since March this year, but patients, and residents, have been cared for in many new ways.
HAWTHORNE TRUST LIMITED
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TRUSTEES' ANNUAL REPORT - CONTINUED
## **ACHIEVEMENTS AND PERFORMANCE (continued)**
Our newly-appointed CSNM was faced by the disruption of the pandemic almost immediately upon her arrival and after a few short weeks she returned to the USA. A team of Christian Science nurses performed her tasks for a time until Ms Florence Mutambara, our Training Centre Manager, took on the role of Acting CSNM. She and our Administrator, who was our CSNM until March 2019, have been taking this opportunity to update all paperwork, revisit CQC requirements and ensure that Ms Mutambara is fully conversant with the role, so that she will be in a position to train a newly-appointed CSNM. The post will not be advertised until everything is properly prepared.
We held an on-line Open Day in June when Mrs Judith Weisz CSB of Bournemouth gave an inspiring address entitled "The fruits of the Spirit"; our Administrator and Christian Science nurses Training Manager, together with some of our trainee Christian Science nurses, gave reports. The Open Day was viewed live by over 400 and the recording, now posted on our website www.chartonmanor.org, has been viewed countless times. Much appreciation has been expressed for its message of caring, healing and joy.
## **FINANCIAL REVIEW**
Although expenditure remained at a steady level, occupancy in the House was less than usual in the first months of the financial year, owing to extra nursing hours being devoted to AL occupants. This led to a shortage of Christian Science nursing staff, followed by some needing to self-isolate in March to May. This situation was reversed during the last four months of the year when we were able to admit a number of new patients as well as continuing to offer extra hours to our AL residents. This higher occupancy rate led to the average monthly revenue from patient and AL care being £61,548 during the last six months, compared with £39,007 during the first half of the year.
We have received tremendous financial support from the Christian Science Field this year; special donations were received from the Pension Trust for Christian Science Nurses (PTCSN), the Westminster Fund and from churches and individuals to support the extra expenditure caused by the pandemic. In addition, a grant was received from Kent County Council which was specifically for use on infection control equipment and vinyl-based (wipe-able) furniture, and we have put those funds to good use. We were very grateful for everyone’s tangible support of our healing mission.
Thanks to The Aid Fund’s generous extension of their grant period, we were able to preserve Hawthorne Trust Benevolent Fund which stands at £72,575 at the end of the year.
The Brenda Woodcock Memorial Fund stands at £226,738 (£238,152 last year). This is a restricted fund set up for the benefit of AL residents at Charton Manor. The fund was not used this year, but its devaluation is due to the sharp decline in the stock market.
The Company retains the freehold of the land occupied by the Orchard Housing Association’s property in Surrey. We receive ground rent from Orchard of £100 per annum.
Investment Income was lower at £121,738 compared with £151,319 last year. The sharp decline in the stock market together with the withholding of dividends by many companies in the last three quarters of the year resulted in the lower investment return. The Board has had additional meetings with their investment managers this year and remains satisfied with the overall composition of the investment portfolios.
Our VCSNS has proved itself to be self-sustaining with income from patient care and regular donations during the last two years. The Board has instructed our Investment Managers to reinvest dividend income for the VCSNS for the foreseeable future.
Our total expenditure of £1,284,791 for the 2019-2020 year was £57,985 less than in the previous year.
## **RESERVES POLICY**
From an accounting standpoint, and in the context of the Company, ‘Reserves’ means the total value of assets less the total value of liabilities.
Total value of assets comprises
- 1) Tangible fixed assets (land, buildings, motor vehicles, equipment)
- 2) Investments (investments managed by Investec Wealth & Investment Ltd and Sanlam Private Investments (UK) Ltd)
- 3) Debtors (mainly amounts owing by patients, and some other receivables)
- 4) Cash at Bank and in hand
HAWTHORNE TRUST LIMITED
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TRUSTEES' ANNUAL REPORT - CONTINUED
## **RESERVES POLICY (continued)**
Total value of liabilities comprises
1) Creditors (amounts owing to trade creditors, and to HM Revenue and Customs for staff PAYE and National Insurance contributions)
Total Reserves as at September 30, 2020 were £7,173,202 (£537,463 lower than 2019) these may also be considered as funds.
Looking at the separate categories, the value of the tangible fixed assets has decreased to £2,116,677 (2019: £2,161,418). These, primarily the buildings, are considered ‘fixed’ in the sense that they could not be sold readily to generate cash, without undermining the ongoing work of the Company. The only likely realisation for these assets would be in the event of a closure of Charton Manor.
Investments are assets that could be easily turned into cash (also referred to as 'liquid assets'), (value as at September 30, 2020 was £4,580,318) which make a key financial contribution to Hawthorne Trust’s income each year. As stated earlier the investment income represented £121,738 meeting approximately 9.5% of Hawthorne Trust’s expenditure. Investment income will vary with level of reserves and market conditions, but over the last 10 years has produced a valuable £1,000,000 plus income for the Company. It is the policy of the Company to add to these investments when income allows (particularly income from donations and legacies). Similarly, investments are sold when necessary to meet the operating costs of the Trust. Any decrease in investments also influences the investment income level generated in following years.
In 2020, total reserves decreased by £537,463 (2019: Increased by £581,400). In the medium term, the trustees intend to have the reserve target to be its pre covid-19 levels, considering our long-term investment plans and the recovery of the stock market. The decrease in the current year’s reserves still less than the increase in the reserves in 2019.
The other categories (debtors, cash at bank and in hand, and creditors) are of a comparatively small net value. More information about them can be found in the Balance Sheet and in the Notes to the Accounts.
The funds are explained in Notes 18 and 19 to these accounts. Of the total of £7,713,202, £593,225 is held in the VCSNS, London Field Fund (restricted funds for this activity). The remainder is available for the other activities of the Company, through restricted and unrestricted funds, specifically the operation of Charton Manor - and represents over five years’ expenditure.
The Company needs to be able to demonstrate financial viability to the CQC. It is also a requirement of our sponsor’s licence with UK Visas and Immigration, where we need to continue bringing in staff and trainees from abroad, demonstrating that we have sufficient reserves to qualify for our ‘A-rated’ status. Despite a continuing pattern of generating net outgoing rather than incoming resources each year (before taking account of donations and legacies), and the uncertainty over future investment growth, the Board nevertheless consider this to be an adequate level of reserves. The Trustees’ policy is to maintain a sufficient level of reserves to allow it to continue to provide, for the foreseeable future, a care home for Christian Science residents and short-term Christian Science nursing care for students of Christian Science. This also has regard to the need for ongoing investment in the premises.
## **INVESTMENT POLICY AND OBJECTIVES**
All Investments held have been acquired in accordance with the Trust’s powers; they are managed by our portfolio managers at Investec and Sanlam to provide mixture of capital growth and income on medium risk basis. Investments are made only in those areas of the market that are not involved with armaments, tobacco, drug or alcohol. The investments are reviewed regularly by the administrator with the portfolio managers, and the Trustees meet with those managers at least once a year. The company holds a detailed investment policy approved by the Trustees.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
The Board, consisting of between four and seven individuals, is drawn from the members of the Company, meaning that they have some prior experience of the working of the Company. New Board members are elected by the existing Board after an interview process; the election of new-Board members is formally confirmed by an election at the next Annual General Meeting of the Company. There were four Board members at the financial year end. Board members hold office for three years from the time of their formal election; thereafter they are eligible to offer themselves for re-election for a further three years, and subsequently for two terms of one year each.
Board members are expected to make use of the many Charity Commission guidelines for their self-training and are booked into training seminars given by professionals for external training. Requests for Trustee training are encouraged. They are expected to attend an orientation programme for Board members arranged by the Christian Science Nursing Department of Charton Manor.
HAWTHORNE TRUST LIMITED
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TRUSTEES' ANNUAL REPORT - CONTINUED
## **STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)**
The number of Company members can range from five to 30; there were 22 on September 30 2020. Christian Scientists who are members of the Church of Christ, Scientist, and who have been taught by an authorised teacher of Christian Science are invited by the Board to join the Company and represent their branch church or society.
The Board meets at least monthly and Company Members meet quarterly for reports and workshops on the work of the Trust. The Board is kept abreast of developments regularly by management and receive monthly financial and inspection reports. Indemnity insurance is in place for all Trustees.
The day-to-day administration of HTL is delegated to the Administrator Mrs Ednah Lawal who, for the purposes of the Care Quality Commission (CQC), is the ‘Nominated Individual responsible for supervising the management of the care home’, Charton Manor. The Administrator is aided in her work by the Executive Secretary and Services Manager.
The management of Christian Science nursing and the overseeing of the training of Christian Science nurses at the care home is carried out by the Christian Science Nursing Manager (CSNM) who, for the purposes of the CQC, is the ‘Registered Manager of the care home’.
The management of the Visiting Christian Science Nurse Service (VCSNS), London Field, (registered as a ‘Domiciliary Care Agency’) is carried out by the VCSNS Manager Mrs Valerie McIntyre who, for the purposes of the CQC, is the ‘Registered Manager of the VCSNS’ providing care in an individual’s home. The VCSNS remains a separate legally distinct charity and has its own aims, objectives and funds but currently shares the same charity number as HTL and is under the direction of the Board of the Company.
The pay of all Key Management Personnel is set by the Board.
Pay is reviewed regularly and determined by the Board to ensure it is commensurate with the high standards demanded of our nursing, training, housekeeping and administrative staff. Regular appraisals are given and goals are agreed for all staff.
In the early summer of 2020 the Board, Company Members, Management and Christian Science nurses undertook a Servant-Leadership professional development course; this was to have been given in person by Dr Joan Bernard Bradley, but had to be presented on-line. It was very successful, leading to enhanced teamwork and more selfless working relationships. Professional development for staff is encouraged and is undertaken as needs arise.
## **RISK AND UNCERTAINTIES**
The Board concluded their annual Risk Assessment Review in February 2019 (updated Dec 2020) and also drew up a revised Business Continuity Plan (BCP) to address specific steps to be taken in the event of any major interruption to the ongoing activities of the work of the Trust. The principal risks and uncertainties identified were satisfied by regular Fire Drills to keep staff aware and alert to this requirement; clear policies governing safeguarding for patients and staff; compliance with Health and Safety needs; transportation policy, gift policy; Disclosure and Barring Service (DBS) clearances for all staff; security processes for visitors and family members. The Trust remains ready and alert for Environmental Health and CQC inspections. The Board meets annually with, and monitors and communicates with, our investment managers to discuss the performance of our investments which are paramount to the future of the Trust. As part of this, benchmarks may be reset and the nature of ethical investments is also reviewed. Part of the risk assessment each year is our insurance policy which includes a liability section for Employers and Public as well as Directors and Officer indemnity.
The Trust continues to invest in expert consultants in HR and H&S support.
## **STRATEGIC REVIEW AND FUTURE PLANS**
Our long term aim is to achieve and maintain into the future the sustainability of Charton Manor and its fundamental role in Christian Science nursing and Christian Science healing. In considering the methods by which to attain this objective, the Board starts with the confidence that they will be shown the correct steps to take to impel the spiritual progress of Charton Manor, and will be led to make correct short and long term decisions. The following are areas of anticipated progress:
**Property:** Our purpose-built Charton Manor has served us well since 1988, but changes and upgrades have been necessary over the years as expectations and demands have changed. This year we have become acutely aware of the need to update Christian Science nurses’ accommodation so that all trainee and _Journal_ - listed Christian Science nurses have en suite facilities. Plans have been drawn up, a project team employed, and we will proceed to obtain quotations as soon as physically possible. It is anticipated that the refurbishment work will cost in the region of £200,000. The renewal of wooden windows and double glazing in the Christian Science nurses’ rooms is also needed, and is planned for next year.
HAWTHORNE TRUST LIMITED
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TRUSTEES' ANNUAL REPORT - CONTINUED
## **STRATEGIC REVIEW AND FUTURE PLANS (continued)**
We continue to benefit from fully equipped nursing rooms, a dedicated team of maintenance and housekeeping staff and an excellent kitchen service. Equipment, as well as furniture and decorating, is kept under constant review, and is replaced as and when necessary. Our well-kept grounds continue to be a peaceful source of comfort for staff and residents alike.
**Residents, guests and patients:** Our aim is to have a full complement of Assisted Living residents, and to this end we are constantly looking to make our provision of accommodation better known. We have invited our Services Manager, Rex Mendis, to provide a virtual tour of the House on our website, so that potential residents can have an overview before travelling to visit. Those interested in having their home at Charton Manor can stay for a two months’ trial period subject to mutual agreement.
When travel and visiting become feasible again, we look forward to receiving requests for our Rest and Study offering, which has scarcely been used since February. Advertising of this facility, together with some virtual tour of the study facilities, will take place as soon as reasonable.
Our aim is to be able to offer our Christian Science nursing services to all who wish to rely on prayer and the support of a Christian Science practitioner for healing. Witnessing healing, when a former patient leaves the House completely healed, is a privilege and joy; and it is our core mission.
**Our Christian Science Nursing Training School:** Our Training School which is open to both UK and overseas applicants helps to feed the worldwide Christian Science movement with dedicated professionals who understand and demonstrate the practical wisdom required in caring for their fellow man. The quality of care received is in accord with the teachings of Christian Science; patients and residents work with the Christian Science nursing staff to attain their natural state of wellbeing.
The provision of more Christian Science nurses is essential to enable us to meet the needs of Christian Scientists. We were not able to offer our Level 1 Class to the sizeable number of applicants because of the pandemic. So, our training plans have become more flexible, and our Level 2 trainee Christian Science nurses have been combining working and training - attending class three days and working two per week until mid-August. This cohort is now doing their On the Job Instruction (OJI) and working towards Level 3. The addition of the two furloughed Christian Science nurses from Springfield House enabled us to cover needs on the Christian Science nursing floor and offer coverage to our VCSNM when she took a break.
**Electronic resources:** Over the past few years many of our rooms have been equipped with digital devices and screens to enable occupants to connect with the world outside Charton Manor. This offering is being steadily enhanced and expanded, and has been a blessing during times of isolation. In addition, it is anticipated that the use of platforms such as Zoom will be used in the future, where feasible, for training purposes, enabling us to offer Christian Science nursing training, for example, to a wider group within our church.
## **CORONA PANDEMIC**
With the nationwide lockdown taking effect from mid-March, Charton Manor immediately put in place procedures to protect staff, patients and residents. These were costly, and extremely demanding on our Administrator, for whose diligence we are very grateful. We have received donations and grants to help with pandemic-related expenses. These came from Kent County Council, the Westminster Fund and the Pension Trust for Christian Science Nurses, as well as individuals, Christian Science organisations and Christian Science churches and societies; all were gratefully received.
The workload for our Christian Science nurses increased as they took over housekeeping jobs, to keep incoming workers to a minimum. For a time the intake of nursing cases was halted, as we did not have the Christian Science nurses to care adequately for new patients. But as things settled and those Christian Science nurses who had returned from abroad came out of quarantine, we were able to receive new patients, in addition to all those assisted and cared for by our VSCN and her helpers. Strong teamwork within the House was evident and was a support to everyone.
Training sessions - for the Board and management as well as Christian Science nurses - went on-line and were usually free of charge, so that we made full use of them. Activities for residents and patients continued but in changed form, and we were grateful to have a volunteer who offered to live in so that she could help with keeping spirits high. Much use has been made of Zoom and on-line "meetings" with relatives.
HAWTHORNE TRUST LIMITED
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TRUSTEES' ANNUAL REPORT - CONTINUED
## **CORONA PANDEMIC (continued)**
All Board and Company Members meetings have been held on line since the beginning of March; this has led to additional meetings to support the excellent work being done in the House. We were glad to have held our Company AGM in February, before travel restrictions were put in place. Management and staff, including the Christian Science nurses and the Board, have taken the opportunity to review the policies coming into the House, bringing them into line with the core practice of Christian Science healing exercised here in Charton Manor. This review is on going. The Memorandum and Articles of Association of Hawthorne Trust Limited, the governing document for all our activities, was reviewed by a sub-committee of Company Members over the Summer of 2020, and the resulting document has gone to our Solicitors, Stone King LLP, for updating and professional advice. This process is still under way.
The pandemic has inevitably had an effect on the value of our investments as well as our income from this source; but the generosity of the Christian Science Movement as well as increased income from Christian Science nursing cases has meant that projected losses have been mitigated and we feel confident that this is a storm that we can weather. Our reserves remain strong.
## **PUBLIC BENEFIT**
The Trustees have had regard to the Charity Commission’s guidance on public benefit, and we abide by the underlying premise that none shall be denied the care they need because they cannot meet the cost. Frequently, however, the fees are beyond the resources of those who are admitted as patients. In the first instance, they are encouraged to apply to The Aid Fund for Christian Scientists in Need of Nursing Care (TAF) to contribute towards the cost of their care. After 26 weeks, when TAF support is reduced, HTL maintains its own Benevolent Fund which steps in to assist.
The provision of training for Christian Science nurses, to serve not only in the UK but all over the world, is expensive, but a percentage (just over 33%) of the cost to HTL can be supported financially by external funds. In the case of each trainee Christian Science nurse this support can be provided by the PTCSN and the Albert Baker Fund; HTL covers the rest. In addition, the PTCSN and the Christian Science Trust in Great Britain can make grants to Christian Science nurses to attend conferences for their professional development, and the PTCSN also offers some support for mentoring costs.
Finally, the provision of affordable accommodation for those Christian Scientists who wish to live in an environment consistent with their religious beliefs is made possible by our Assisted Living programme. The Brenda Woodcock Memorial Fund provides assistance in case of need for those living at Charton Manor under the AL provision.
## **STATEMENT OF DIRECTORS' RESPONSIBILITIES**
The Directors (who are also the Trustees of Hawthorne Trust Limited for the purposes of charity 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 Directors of the charitable company to prepare, for each financial year, financial statements which give a true and fair view of the Company’s state of affairs and of the incoming resources and application of resources, including the income and expenditure. In preparing these financial statements, the Directors are required to:
- Select suitable accounting policies and then apply them consistently;
- Observe the methods and principles in the Charities SORP;
- Make judgements and estimates that are reasonable and prudent;
- State whether applicable UK Accounting standards have been followed, subject to any material departures disclosed and explained in the financial report;
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation
The Directors are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the Directors are aware:
- there is no relevant audit information of which the charitable company's auditor is unaware; and
- the Directors have taken all steps that they ought to have taken to make themselves aware of any relevant information and to establish that the auditor is aware of that information.
HAWTHORNE TRUST LIMITED
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TRUSTEES' ANNUAL REPORT - CONTINUED
## **AUDITORS**
A resolution to re-appoint Haysmacintyre LLP as auditors will be put to the Annual General Meeting.
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
Charton Manor By Order of the Board Gorse Hill Farningham Kent DA4 0JT Date: 18[th] March 2021
Margaret Chaplin Director
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF
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HAWTHORNE TRUST LIMITED
## **Opinion**
We have audited the financial statements of Hawthorne Trust Limited for the year ended 30 September 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow statement, and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
give a true and fair view of the state of the parent charitable company’s affairs as at 30 September 2020 and of the charitable company's net movement in funds, including the income and expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Responsibilities of trustees for the financial statements**
As explained more fully in the trustees’ responsibilities statement set out on page 6, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Conclusions relating to going concern**
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF
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HAWTHORNE TRUST LIMITED
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
## **Opinion on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
the information given in the Trustees’ Annual Report (which the directors’ report prepared for the purposes of company law) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors’ report included within the Trustees' Annual Report has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report (which incorporates the directors’ report).
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the charitable company; or
the charitable company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of trustees’ remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit ; or the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the Trustees’ Annual Report and from the requirement to prepare a strategic report.
## **Use of our report**
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
## **Adam Halsey**
## **Senior Statutory Auditor**
For and on behalf of **Haysmacintyre LLP 10 Queen Street Place Chartered Accountants and Statutory Auditors London EC4R 1AG**
Date: 13 May 2021
HAWTHORNE TRUST LIMITED
Page 10
## STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE)
## FOR THE YEAR ENDED 30TH SEPTEMBER 2020
**----- Start of picture text -----**
Unrestricted Restricted Total Total
Funds Funds 2020 2019
Notes £ £ £ £
Income from:
Donations and legacies 2 302,549 49,280 351,829 1,009,487
Charitable activities:
Contributions received 3 668,487 70,550 739,037 682,888
Investment income 4 101,592 20,146 121,738 151,319
Total Income 1,072,628 139,976 1,212,604 1,843,694
Expenditure on:
Cost of raising funds:
Investment management fees 5 29,517 5,005 34,522 30,618
Expenditure on charitable activities:
Provision of care services 6 1,139,837 110,432 1,250,269 1,312,158
Total expenditure 1,169,354 115,437 1,284,791 1,342,776
Net income/(expenditure) before investment
gains (96,726) 24,539 (72,187) 500,918
Net gains/(losses) on investments 15 (378,023) (87,253) (465,276) 80,482
Net income/(expenditure) 10 (474,749) (62,714) (537,463) 581,400
Transfers between funds 18 - - - -
Net Movement in Funds (474,749) (62,714) (537,463) 581,400
Reconciliation of funds:
Fund balances at the start of the
reporting period 18 6,753,913 956,752 7,710,665 7,129,265
Fund balances at the end of the
reporting period 18 6,279,164 894,038 7,173,202 7,710,665
**----- End of picture text -----**
The Charitable Company had no recognised gains or losses other than those disclosed in the Statement of Financial Activities above. All activities are continuing.
The unrestricted funds are general funds of the trust and the restricted funds are made up of: The Benevolent Fund, The Brenda Woodcock Memorial Fund, The Visiting Christian Science Nurse Service Fund and The Gifts to Christian Science Nurses Fund.
The notes form part of these Financial Statements
HAWTHORNE TRUST LIMITED
Page 11
BALANCE SHEET
Company Number: 293710
AS AT 30TH SEPTEMBER 2020
**----- Start of picture text -----**
2020 2019
Notes £ £ £ £
FIXED ASSETS
Tangible fixed assets 14 2,116,677 2,161,418
Investments 15 4,580,318 4,930,725
6,696,995 7,092,143
CURRENT ASSETS
Debtors 16 119,876 92,805
Cash at bank and in hand 430,372 594,415
550,248 687,220
CREDITORS: amounts falling due
within one year 17 74,041 68,698
NET CURRENT ASSETS 476,207 618,522
TOTAL ASSETS LESS CURRENT
LIABILITIES 19 7,173,202 7,710,665
THE FUNDS OF THE CHARITY
Unrestricted
General Funds 18 6,279,164 6,753,913
Restricted
Hawthorne Trust [Charton Manor] Benevolent Fund 18 72,575 71,865
Brenda Woodcock Memorial Fund 18 226,738 238,152
Visiting Christian Science Nurse Service 18 593,225 645,235
Gifts to Christian Science Nurses Fund 18 1,500 1,500
TOTAL CHARITY FUNDS 7,173,202 7,710,665
**----- End of picture text -----**
The financial statements have been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006.
Approved and authorised for issue by the Board of Directors (Trustees) on 18[th] March 2021 and signed on its behalf by:
Director (Trustee) M Chaplin
Director (Trustee) B Blandford
The notes form part of these Financial Statements
HAWTHORNE TRUST LIMITED
Page 12
## CASH FLOW STATEMENT
## FOR THE YEAR ENDED 30TH SEPTEMBER 2020
**----- Start of picture text -----**
2020 2019
£ £ £ £
Cash flows from operating activities:
Net movement in funds for the year (537,463) 581,400
Depreciation charges 71,417 69,297
Investment income (121,738) (151,319)
Losses/(Gains) on investments 465,277 (80,482)
(Increase)/decrease in debtors (27,071) (8,061)
Increase/(decrease) in creditors 5,343 (34,870)
Net cash used in operating activities (144,235) 375,965
Cash flows from investing activities:
Investment income 121,738 151,319
Purchase of tangible fixed assets (26,676) (100,628)
Purchase of fixed asset investments (883,858) (614,382)
Proceeds from the sale of fixed asset investments 813,347 673,930
Cash (deducted from)/added to investment cash (44,359) (353)
(141,546) (41,433)
Net cash provided by investing activities (19,808) 109,886
Increase/(decrease) in cash and cash equivalents in
the year (164,043) 485,851
Cash and cash equivalents at the beginning of the year 594,415 108,564
Total cash and cash equivalents at the end of the
year 430,372 594,415
**----- End of picture text -----**
HAWTHORNE TRUST LIMITED
Page 13
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30TH SEPTEMBER 2020
## 1. ACCOUNTING POLICIES
The financial statements have been prepared in accordance with applicable accounting standards issued by UK accountancy bodies. The particular accounting policies adopted are described below.
## (a) Basis of preparation
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP 2019 (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice.
Hawthorne Trust Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value, as modified for the revaluation of investments.
Further to a Uniting Direction issued by the Charity Commission, the financial statements aggregate the results and net assets of the Visiting Christian Science Nurse Service, London Field, Charity Registration number 209230-1.
Significant estimates and judgements include the assessment of the useful lives and residual values of Freehold land and buildings and other fixed assets and the assessment of appropriate rates of depreciation.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
The company number and registered office of the company is given in the general information.
- (b) Charitable company status
The charity is also a private company limited by guarantee and is registered in England and Wales. In the event of the charity being wound up, each member is liable to contribute an amount not exceeding £1.
(c) Preparation of the accounts on the going concern basis The charity has total funds carried forward of £7,173,202. The trustees are of the view that this is more than sufficient to secure the long term future of the charity and that on this basis the charity is a going concern.
- (d) Income
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.
Throughout the year guests were charged for the cost of their stay and asked to contribute what they could afford.
Further contributions towards guests' costs were received from The Aid Fund for Christian Scientists in Need of Nursing Care ("The Aid Fund"). The balance of the costs incurred by guests were met from the resources of the charity.
All contributions arise in respect of the charity's continuing activities.
For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. Receipts of property, investments or other gifts in kind are included at market value.
HAWTHORNE TRUST LIMITED
Page 14
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30TH SEPTEMBER 2020
## 1. ACCOUNTING POLICIES (cont'd)
## (e) Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity.
- (f) Fund accounting
Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific future purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the Trust’s work.
## (g) Expenditure
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
- Costs of raising funds comprises the costs of managing the investment funds.
- Expenditure on charitable activities includes the costs of providing nursing care, repairs to the care home and other activities undertaken to further the purposes of the charity and their associated support costs.
## (h) Allocation of support costs
- Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include admin, finance, personnel, and governance costs which support the Trust's primary activity of providing a nursing facility. Support costs consist of those costs not directly attributable to the activities of the charity but which are necessary to support them.
## (i) Tangible fixed assets
Assets with a useful life exceeding one year, costing in excess of £500 are capitalised at cost.
Depreciation is calculated to write off the cost of all tangible fixed assets, other than freehold land, which is not depreciated, in equal annual instalments over their estimated useful lives at the following rates:
||%|
|---|---|
|Buildings|2|
|Boilers/plant|5|
|Furniture, fixtures and fittings|10|
|Equipment|10|
|Computer equipment|20|
|Motor vehicles|20|
## (j) Operating leases
Operating lease rentals are recognised in the Statement of Financial Activities on a straight line basis over the period of the lease.
## (k) Financial instruments
There are no complex instruments and all items are initially valued at cost/transaction value with investments being restated at fair value. Gains and losses on the restatement or disposal of investments are shown in the Statement of Financial Activities.
## (l) Pensions
The Charity makes pension contributions into the Hawthorne Trust Group Personal Pension Plan (GPPP), which is a defined contribution pension scheme. The GPPP is with AEGON and managed by Buckland Harvester of 5 The Parsonage, Manchester M3 2HS. The Charity has no liability other than to make the defined contributions as they fall due.
Total contributions for the year are disclosed as other pension costs in Note 7.
HAWTHORNE TRUST LIMITED
Page 15
NOTES ON FINANCIAL STATEMENTS - continued
## FOR THE YEAR ENDED 30TH SEPTEMBER 2020
## 2. DONATIONS AND LEGACIES
|Donations
Legacies|2020
£
226,312
125,517
351,829|2019
£
1,007,737
1,750
1,009,487|
|---|---|---|
Of the £1,009,487 recognised in 2019, £748,021 was unrestricted fund income and £261,466 was restricted fund income.
|3. INCOME FROM CHARITABLE ACTIVITIES
Contributions due from guests
Amounts due from staff/students
Phone recoveries
Other recoveries|2020
£
672,363
46,857
997
18,820
739,037|2019
£
611,232
57,729
989
12,938
682,888|
|---|---|---|
Of the £682,888 recognised in 2019, £607,711 was unrestricted fund income and £75,177 was restricted fund income.
|4. INVESTMENT INCOME
From listed securities
Bank interest|2020
£
121,008
730
121,738|2019
£
150,601
718
151,319|
|---|---|---|
Of the £151,319 recognised in 2019, £124,132 was unrestricted fund income and £27,187 was restricted fund income.
|5. COST OF RAISING FUNDS
Direct
Costs
Investment management fees
£34,522
6. COST OF CHARITABLE ACTIVITIES
Direct
Costs
Provision of nursing care
Of the £30,618 expenditure recognised in 2019, £25,884 was
charged to restricted funds.|Support
Total
Total
Costs
2020
2019
£Nil
£34,522
£30,618
Support
Total
Total
Costs
2020
2019
£215,083
£215,083
£1,312,158
charged to unrestricted funds and £4,734 was|
|---|---|
Of the £1,312,158 expenditure recognised in 2019, £1,193,292 was charged to unrestricted funds and £118,866 was charged to restricted funds.
HAWTHORNE TRUST LIMITED
Page 16
## NOTES ON FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30TH SEPTEMBER 2020
|7. ANALYSIS OF DIRECT COSTS
Salaries and wages
Social Security costs
Other pension costs
Depreciation
Other expenditure|£
-
-
-
-
-
34,522
34,522
Raising
funds|£
653,139
52,804
49,669
755,612
69,271
210,303
1,035,186
Charitable
activities|Total
2020
£
653,139
52,804
49,669
755,612
69,271
244,825
1,069,708|Total
2019
£
659,334
51,900
52,158
763,392
67,086
287,936
1,118,414|
|---|---|---|---|---|
Of the £1,118,414 recognised in 2019, £1,087,796 was charged to charitable activities and Other Expenditure of £30,618 was charged to raising funds.
|8. ANALYSIS OF SUPPORT COSTS
£
£
Salaries and wages
-
106,685
Social Security costs
-
11,433
Other pension costs
-
10,590
-
128,708
Depreciation
-
2,146
Governance (Note 9)
-
11,363
Other expenditure
-
72,866
-
215,083
9. GOVERNANCE COSTS
Auditors remuneration
Directors' expenses (Note 11)
10. NET INCOME/(EXPENDITURE)
This is stated after charging:
Depreciation
Auditors remuneration - audit services
Pension costs (defined contribution scheme)
Charitable
activities
Raising
funds
All of the £224,362 recognised in 2019 was charged to charitable activities.|Total
2020
£
106,685
11,433
10,590
128,708
2,146
11,363
72,866
215,083
2020
£
10,620
743
11,363
2020
£
71,417
10,620
49,669|Total
2019
£
107,952
7,503
11,277
126,732
2,211
17,025
78,394
224,362
2019
£
9,900
7,125
17,025
2019
£
69,297
9,900
52,158|
|---|---|---|
## 11. TRUSTEES' REMUNERATION AND EXPENSES
The trustees did not receive any remuneration in the current or prior year.
There were no donations from any trustees within the current or prior year.
Expenses amounting to £743 (2019: £7,125) were reimbursed to 4 (2019: 3) Trustees in the year for travel.
HAWTHORNE TRUST LIMITED
Page 17
NOTES ON FINANCIAL STATEMENTS - continued
## FOR THE YEAR ENDED 30TH SEPTEMBER 2020
**----- Start of picture text -----**
||||
|---|---|---|
|12. STAFF COSTS|2020|2019|
|£|£|
|Staff costs during the year were as follows:|
|Wages and salaries|759,824|767,286|
|Social security costs|64,237|59,403|
|Pension costs|60,259|63,435|
|884,320|890,124|
**----- End of picture text -----**
- (a) The average number of persons employed by the company during the period was 29; 15 full time and 14 part time (2019: 29; 16 full time and 13 part time).
- (b) Salaries and wages includes £6,734 (2019: £24,150) in respect of temporary staff.
- (c) Higher paid staff. The number of staff whose total employee benefits (excluding employer's pension costs) exceeded £60,000 was as follows:
£60,000 - £69,999
**----- Start of picture text -----**
|||
|---|---|
|2020|2019|
|1|NIL|
**----- End of picture text -----**
- (d) The key management personnel of the charity comprise the board, administrator, Christian Science nursing manager and the VCSNS manager. The total employee benefits of the key management personnel of the trust were £211,534 (2019: £194,750).
- Under FRS 102, employee benefits include gross salary, benefits in kind, employer’s national insurance and employer's pension costs.
## 13. TAXATION
As the Company has charitable status it is exempt from Corporation Tax on its charitable activities and capital gains, provided that its expenditure is for charitable purposes.
**----- Start of picture text -----**
|||||
|---|---|---|---|
|14. TANGIBLE FIXED ASSETS|Motor vehicles|
|Freehold land|furniture and|
|and buildings|equipment|Total|
|£|£|£|
|COST|
|At 1st October 2019|3,085,225|327,605|3,412,830|
|Additions|-|26,676|26,676|
|At 30th September 2020|3,085,225|354,281|3,439,506|
|DEPRECIATION|
|At 1st October 2019|1,003,973|247,439|1,251,412|
|Charge for the year|53,706|17,711|71,417|
|At 30th September 2020|1,057,679|265,150|1,322,829|
|NET BOOK VALUE|
|At 30th September 2020|2,027,546|89,131|2,116,677|
|At 30th September 2019|2,081,252|80,166|2,161,418|
**----- End of picture text -----**
HAWTHORNE TRUST LIMITED
Page 18
## NOTES ON FINANCIAL STATEMENTS - continued
## FOR THE YEAR ENDED 30TH SEPTEMBER 2020
|15. FIXED ASSET INVESTMENTS
Market value at 1 October 2019
Additions in the year
Disposal proceeds
Net investment gains/(losses)
- Realised gains/(losses) on disposals
- Unrealised gains/(losses)
Market value at 30 September 2020
Cost at 30 September 2020
Cost at 30 September 2019|Total
£
4,930,725
959,531
(844,661)
(18,730)
(446,547)
4,580,318
3,861,252
3,700,501|Cash
£
97,988
75,673
(31,314)
-
-
142,347
142,347
97,988|Government
and Fixed
Interest
Securities
£
1,003,165
214,337
(317,289)
(8,736)
(24,289)
867,188
861,221
967,366|Equities
£
1,273,262
477,356
(296,183)
(26,950)
(220,429)
1,207,056
1,184,232
1,023,789|Unit Trusts
£
2,556,310
192,165
(199,875)
16,956
(201,829)
2,363,727
1,673,452
1,611,358|
|---|---|---|---|---|---|
Government and Fixed Interest Securities, Equities and Unit Trusts Investments are quoted on a UK recognised stock exchange.
Of the £80,482 net realised and unrealised gains on investments recognised in 2019, gains of £82,301 related to unrestricted funds and losses of (£1,819) related to restricted funds.
HAWTHORNE TRUST LIMITED
Page 19
## NOTES ON FINANCIAL STATEMENTS - continued
## FOR THE YEAR ENDED 30TH SEPTEMBER 2020
**----- Start of picture text -----**
16. DEBTORS 2020 2019
£ £
Trade debtors 38,357 36,954
Other debtors 56,651 20,510
Prepayments and accrued income 24,868 35,341
119,876 92,805
17. CREDITORS: Amounts falling due within one year 2020 2019
£ £
Taxes and social security 14,155 15,122
Other creditors 11,931 14,261
Trade creditors and accruals 47,955 39,315
74,041 68,698
18. RESERVES Brought Carried
forward Income Expenditure Transfers forward
£ £ £ £ £
2020
Unrestricted General Fund 6,753,913 694,605 (1,169,354) - 6,279,164
Restricted Funds:
Brenda Woodcock Memorial Fund 238,152 (10,054) (1,360) - 226,738
Charton Manor Benevolent Fund 71,865 710 - - 72,575
VCSNS Fund 645,235 23,517 (75,527) - 593,225
Gifts to Christian Science Nurses Fund 1,500 38,550 (38,550) - 1,500
-
7,710,665 747,328 (1,284,791) 7,173,202
**----- End of picture text -----**
The Brenda Woodcock Memorial Fund is a restricted fund for the benefit of assisted living guests at Charton Manor.
The Charton Manor Benevolent Fund has been established as a restricted fund to provide contributions towards guests' costs in the case of need.
The VCSNS Fund provides benefit to those Christian Scientists usually living within 50 miles of central London who are in need of nursing in their own homes.
The Gifts to Christian Science Nurses Fund has been established with a view to providing occasional grants or gifts to Christian Science Nurses.
HAWTHORNE TRUST LIMITED
Page 20
NOTES ON FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30TH SEPTEMBER 2020
**----- Start of picture text -----**
18. RESERVES (cont'd)
Comparative information for the movement in reserves in the previous year is as follows:
Brought Carried
forward Income Expenditure Transfers forward
£ £ £ £ £
2019
Unrestricted General Fund 6,412,424 1,562,165 (1,219,176) (1,500) 6,753,913
Restricted Funds:
Brenda Woodcock Memorial Fund 226,968 12,573 (1,389) - 238,152
Charton Manor Benevolent Fund - 98,809 (26,944) - 71,865
VCSNS Fund 489,873 250,629 (95,267) - 645,235
Gifts to Christian Science Nurses Fund - - - 1,500 1,500
-
7,129,265 1,924,176 (1,342,776) 7,710,665
19. NET ASSETS BY FUND
Brenda Charton Gifts to
Woodcock Manor Christian
Memorial Benevolent VCSNS Science
Total General Fund Fund Fund Nurses Fund
£ £ £ £ £ £
2020
- - - -
Tangible fixed assets 2,116,677 2,116,677
Investments 4,580,318 3,866,611 190,857 - 522,850 -
Net current assets 476,207 295,876 35,881 72,575 70,375 1,500
As at 30th September 2020 7,173,202 6,279,164 226,738 72,575 593,225 1,500
Comparative information for the analysis of net assets by fund in the previous year is as follows:
Brenda Charton Gifts to
Woodcock Manor Christian
Memorial Benevolent VCSNS Science
Total General Fund Fund Fund Nurses Fund
£ £ £ £ £ £
2019
- - - -
Tangible fixed assets 2,161,418 2,161,418
Investments 4,930,725 4,261,550 202,300 - 466,875 -
Net current assets 618,522 330,945 35,852 71,865 178,360 1500
As at 30th September 2019 7,710,665 6,753,913 238,152 71,865 645,235 1,500
**----- End of picture text -----**
HAWTHORNE TRUST LIMITED
Page 21
NOTES ON FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30TH SEPTEMBER 2020
## 20. COMPANY STATUS AND MEMBERSHIP
The Company is a private company limited by guarantee and without a share capital registered in England and Wales. The liability of the members is limited and every member of the Company undertakes to contribute up to £1 to the assets of the Company in the event of its being wound up. At 30th September 2020 there were 21 members.
The registered office of the company is at Hawthorne Trust Ltd, Charton Manor, Gorse Hill, Farningham, Kent, DA4 OJT.
## 21. RELATED PARTIES
There have been no transactions with related parties requiring disclosure during the year ended 30th September 2020 or in the preceding year, other than the transactions with trustees/directors disclosed in note 11.
## 22. CONTRACTUAL COMMITMENTS
There were no contractual commitments as at the year end (2019: None).
**----- Start of picture text -----**
HAWTHORNE TRUST LIMITED
OPERATING INCOME AND EXPENDITURE ACCOUNT Year ended Year ended
FOR THE YEAR ENDED 30TH SEPTEMBER 2020 30 September 30 September
Note 2020 2019
INCOME
Due from guests for nursing services (excl. phones) 1 672,363 611,232
Due from staff and students (excl. phones) 46,857 57,729
Phone recoveries 997 989
Other recoveries 18,944 17,116
Amounts considered doubtful (124) (4,178)
Total contributions received from continuing operations 739,037 682,888
Donations and gifts - unrestricted 187,052 908,898
Donations and gifts - restricted (Benevolent Fund) 710 98,809
Donations and gifts - restricted (Brenda Woodcock Memorial Fund) - 30
Donations and gifts - restricted (Gifts to Christian Science Nurses Fund) 38,550 -
Legacies 125,517 1,750
Investment income 121,738 151,319
Total income 1,212,604 1,843,694
EXPENDITURE
Cost of raising funds
Investment Managers fees 34,522 30,618
Charitable activities
Contributions towards patients fees by the HTL Benevolent Fund 1 - 26,944
Salaries, social security costs and pension costs 755,612 763,392
Food supplies 51,160 50,709
Nursing Supplies 15,850 13,202
Laundry 312 353
House sundries 46,636 40,026
Repairs, maintenance and leasing 22,233 37,771
Recruitment advertising 1,605 1,725
Service contracts 1,105 1,740
Travel expenses and allowances 8,888 16,426
Other professional fees 32,960 24,232
Trust sundries 29,554 44,190
Depreciation 69,271 67,086
Total costs in furtherance of the charity's objects 1,035,186 1,087,796
Support costs
Salaries, social security costs and pension costs 128,708 126,732
Depreciation 2,146 2,211
Other support costs:
Electricity and gas 28,704 29,381
Rates and insurance 36,915 39,148
Telephone 3,658 4,088
Printing, postage and stationery 3,589 5,777
Total support costs 203,720 207,337
Governance costs
Professional fees (auditor's remuneration) 10,620 9,900
Directors expenses 743 7,125
Total management and administrative expenditure 11,363 17,025
Total expenditure 1,284,791 1,342,776
NET (EXPENDITURE)/INCOME (72,187) 500,918
Gains on investments
Realised gains/(losses) on disposal of investments (18,730) (3,456)
Unrealised (losses)/gains on investments (446,546) 83,938
NET MOVEMENT IN FUNDS (£537,463) £581,400
Note 1: Income due from guests for nursing services was funded as follows % %
Aid Fund for Christian Scientists in Need of Nursing Care 23.2 155,972 19.6 119,956
Hawthorne Trust Benevolent Fund 0.0 - 4.4 26,944
Guests and other private means 76.8 516,391 76.0 464,332
100 672,363 100.0 611,232
**----- End of picture text -----**
This page does not form part of the audited financial statements but is based upon the accounting records of the company which have been subject to audit.