2021-08-31-accounts - The Hawthorns Educational Trust Limited

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				Page
Governors' Annual Report (incorporating			a Group Strategic Report)
independent	Auditors Report
Consolidated	Statement of Financial	Activities		14
Consolidated	Balance Sheet			15
Company Balance Sheet				16
Consolidated	Cashf low Statement			17
Notes to the	Accounts			18

Headmaster	Headmaster				Mr A E Floyd
Bursar	and Company		Secretary		Mr D St John Parker	(appointed		12th April 2021)
Senior	Leadership	Team			Mr A Duggan, Miss SC Fowler,			Mr M W Goldhawk,
					Mr AJ Morris, Mr RJTemlett		(resigned 31stAugust
					2021), Mr SJWalton (resigned			31stAugust 2021),
					Mrs F EWestwood and Mrs		KA Wyborn.
Address	and Registered			Office	The Hawthorns Educational		Trust Limited
					T/A The Hawthorns	School
					Pendell Court
					Bletchingley, Surrey	RH1 4QJ
Bankers					Lloyds Bank pic
					1 London Road
					Redhill
					Surrey RHI IND
Auditors					TC Group
					The Courtyard
					Shoreham Road
					Upper Seeding
					Steyning
					West Sussex BN44 3TN
School Website					www. hawthorns. corn
Email					office@hawthorns. corn

The Hawthorns Educational Trust Limited INDEPENDENT AUDITOR'S REPORT Year Ended 31 August 2021 Responsibilities of Governors As explained more fully in the Governors, responsibilities statement sel out on page 7, the Governors (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial stalemenls and for being satisfied that Ihey give a true and fair view, and for such internal control as the Governors determine is necessary lo enable the preparation of financial statements that are free from material misstatement, whether due lo fraud or error. In preparing the financial statements, the governors are responsible for assessing the charitable company's ability to continue as a going concem, disclosing, as applicable, rnalters related to going concern and using the going concern basis of accounting unless the governors 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 flnanclal statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misslalemenl, 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 Ihat an audit conducted in accordance with ISAS (UK) will always detect a malerial 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 descriplion of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: https'.Ilwww.frc.org.uklOur-WorkJAudiUAudil-and-assurancelStandards-and- guidancelslandards-and-guidance-for-audilorslAuditors-responsibililies-for-audiVDescription-of-auditors- responsibililies-for-audit.aspx. This description fomis part of our auditor's report.

		Unrestricted	Restricted	TOTAL	TOTAL
		Funds	Funds	2021	2020
					F
INCOME FROM:
Donations and legacies		2,322	1,205	3,527	21,762
Charitable activities
Fees receivable		5,559,521		5,559,521	5,697,427
Other trading activities
Sports Centre Protection fees		327,080 1,587		327,080 1,587	360„114 4,080
Other income		101,625		101,625	499,765
Total Income		5,992,135	1,205	5,993,340	6,583,148
EXPENDITURE ON:
Raising funds
Sports Centre		470,251		470,251	508,115
Fundraising (The Hawthorns		3,187		3,187	3,293
Foundation)
Charitable Activities
Education		5,640,403		5,640,403	5,966,931
Total Expenditure		6,113,841		6,113,841	6,478,339
NET INCOME/(EXPENDITURE)		(121,706)	1„205	(120,501)	104,809
AND NET MOVEMENT	IN
FUNDS
Reconciliation offunds
Total funds brought forward		5,843,232	385,202	6,228,434	6,123,625
Total funds carried forward		5,721,526	386,407	6,107,933	6,228,434

The Hawthorns Educational T CONSOLIDATED BALANCE As at 31 August 2021	rust Limited SHEET
	Notes		2021		2020
			E		E
FIXEDASSETS
Tangible Assets	10		8,065,347		8,321,870
CURRENT ASSETS
Debtors	12	1,263,548		1,447,311
Cash at bank and in hand		48,946		399,770
Total Current Assets		1,312,494		1,847,081
Creditors, due within one year				3,404,852
NET CURRENT LIABILITIES			(1,255,650)		(1,557,771)
LONG TERM LIABILITIES
Creditors, due after more than	14		(701,764)		(535,665)
one year
TOTAL NET ASSETS			6,107,933		6,228,434
Represented by
Unrestricted Fund	17		5,721,526		5,843,232
Restricted Fund	16		386,407		385,202
TOTAL NET FUNDS			6,107,933		6,228,434
These accounts were approved	by the board	on
BJCDyer
	hair
D WJSearle
	Governor

ONSOLIDATED CASH FLOW ST ear ended 31 August 2021	ATE	MENT
			2021		2020
			E		E
Cash flows from operating activities:
Net income/expenditure for the year		(120,501)		104,809
Adjustments for:
Depreciation		450,497		418,081
Decrease/(Increase) in debtors (Decrease)/Increase in creditors		183,763 93,950		216,853 ~532,215
Net cash provided by/(used operating activities	in)		607,709		207,528
Cash flows from investing activities
Proceeds from the sale ofproperty, plant and equipment		2,500
Purchase oftangible fixed assets		196,474		280,298
Net cash provided by/(used investing activities	in)		(193,974)		(280,298)
Cash flows from financing activities
Cash inflows from new borrowing		200,000
Repayments of borrowing		(71,265		(67,505)
Net cash provided by/(used financing activities	in)		128,735		(67,505)
Change in cash and cash equivalent in the year			542,470		(140,275)
Cash and cash equivalents at the beginning ofthe year			(675,019)		(534,744)
Cash and cash equivalents at the end ofthe year			(132,549)		(675„019)
Analysis of cash and cash
equivalents
Cash at bank and in hand			48,946		399,770
Overdraft facility payable on demand			(181,495)		(1,074,789)
Total cash and cash equivalents			(132,549)		(675,019)


3	Income from Charitable		Activities		2021	2020
	Gross fees				5,783,330	6,245,618
	Less: bursaries,	scholarships		and discounts	(324,367)	(407,470)
	Less: COVID adjustments				103,071	377,114
					5,355,892	5,461,034
	Extras				203,629	236,393
					5,559,521	5,697,427
4	Income from Other Trading			Activities	2021	2020
						E
	Sports Centre income				308,830	342,585
	Other lettings and activities				18,250	17,529
					327,080	360,114
	Net commission	receivable				4,080
					327,080	364,194
5	Other income				2021	2020
						F
	Insurance reclaim					210,033
	Furlough grant	income			101,625	289,732
					101,625	499,765

		Staff Costs		Other	Depreciation	Total	Total
						2021	2020
							E
Cost ofraising funds
Fundraising		3,187				3,187	3,293
Lettings (inc.		338,707		131,544		470,251	508,115
Sports Centre
exp)
Total cost of		341,894		131,544		473,438	511,408
raising funds
Teaching		3,168,335		190,234	179,076	3,537,645	3,690,938
Welfare			408,014			408,014	392,286
Premises		172,700	409,040		271,421	853,161	847,031
Finance costs				34,341		34,341	49,206
Support	and	434,816		372,426		807,242	987,470
Governance
Total charitable		3,775,851	1,414,055		450,497	5,640,403	5,966,931
expenditure
Total Expenditure		4,117,745	1,545,599		450,497	6,113,841	6,478,339
Analysis ofsupport		and Governance	costs
Governance	costs:					2021 E	2020f
Auditors' remuneration		for audit services				12,240	11,880
						12,240	11,880
Support costs:
Auditors' remuneration		for non audit services				12,660	16,452
Support staff	wages,	national insurance	and	pension		434,816	532,091
Other support	costs					347,526	427,047
						807,242	987,470

7 Comparative Statem	ent	ofFinancial Activities	—Year Ended 31August	2020
			Unrestricted	Restricted	Total
			Funds	Funds	2020
INCOME FROM:
Donations and legacies			16,951	4,811	21,762
Charitable activities
Fees receivable			5,706,547	(9,120)	5,697,427
Other trading activities
Sports Centre Protection fees			360,114 4,080		360,114 4,080
Other income			499,765		499,765
Total Income			6,587,457	4,309	6,583,148
EXPENDITURE ON:
Raising funds
Sports Centre			508,115		508,115
Fundraising (The Hawthorns		Foundation)	3,293		3,293
Charitable Activities
Education			5,966,931		5,966,931
Total Expenditure			6,478,339		6,478,339
NET INCOME			109,118	(4,309)	104,809
Net movement in funds
Fund balances brought	forward		5,734,114	389,511	6,123,625
Fund balances carried	forward		5,843,232	385,202	6,228,434

Staff Co	sts
				2021	2020
					F
Salaries and wages Social security costs				3,265,602 307,441	3,487,647 322,300
Pension	costs			544,702	567,925
				4,117,745	4,377,872
Number	ofemployees	whose emoluments	for the year exceeded	2021	2020
860,000
			F60,000to F69,999
			2100,000to f109,999
			8120,000to F129,999
			8130,000to F139,999

					2021	2020
	Teaching and teaching assistants			(term time)	57	61
Others	(administration,	kitchen, maintenance	and sports centre)		33	35
					90	96

uctural reo	rganisation.
							2021	2020
							F	F
Aggregate	employee	benefits	of	key	management	personnel	827,431	960,389

			2021	2020
			F
Included	within the operating surplus	for the year are the following:
Charitable Activities -Education
Operating	lease rentals (inc. VAT)		46,552	48,643
Governance
Auditors'	fees —audit services (inc.	VAT)	12,240	11,880
Auditors'	fees —other services (inc.	VAT)	12,660	16,452

Tangible Fixe	d Assets
The movement	oftangible fixed	assets was as follows:
THE GROUP		Freehold	Electrical,	Fixtures,	TOTAL
		property	computer 8	fittings, tools
			garden	8 equipment
			equipment
Cost
At beginning ofyear		11,032,301	530,200	670,862	12,233,363
Additions		84,011	64,832	47,631	196,474
Disposals			(176,149)		(176,149)
At end ofyear		11,116,312	418,883	718,493	12,253,688
Accumulated	Depreciation
At beginning ofyear		3,239,387	355,694	316,412	3,911,493
Charge for year		271,421	107,678	71,398	450,497
Disposals			173,649		173,649
At end ofyear		3,510,808	289,723	387,810	4,188,341
Net Book Value
At beginning ofyear		7,792,914	174,506	354,450	8,321,870
At end ofyear		7,605,504	129,160	330,683	8„065,347
THE COMPANY
Cost
At beginning ofyear		10,922,301	530,200	670,862	12,123,363
Additions		84,011	64,832	47„631	196,474
Disposals			176,149		176,149
At end ofyear		11,006,312	418,883	718,493	12,143,688
Accumulated	Depreciation
At beginning ofyear		3,239,387	355,694	316,412	3,911,493
Charge for year		271,421	107,678	71,398	450,497
Disposals			173,649		173,649
At end ofyear		3,510,808	289,723	387,810	4,188,341
Net BookValue
At beginning ofyear		7,682,914	174,506	354,450	8,211,870
At end ofyear		7,495,504	129,160	330,683	7,955,347

2021	2020
E
71,534	71,534

Debtors
		The	Grou	The Compan
		2021	2020	2021	2020
		F	F		F
Fees receivable		1,135,694	1,248,019	1,135,670	1,248,019
Other debtors		13,152	66,010	13,152	65,988
Prepayments Loan to subsidiary	company	114,702	'l33,282	114,702 45,276	133,282 45,276
TOTAL		1,263,548	1,447,311	1,308,800	1,492,565

				The	Grou	The Compan	The Compan
				2021	2020	2021	2020
				E	P	F	F
Fees charged	in advance			1,959,524	1,759,284	1,959,524	1,759,284
Bank loans and		overdrafts		273,367	1,145,938	273,367	1,145,938
Other creditors		and school	(Note 15)	299,977	414,799	299,737	414,559
fees received	in advance
Accruals				35,276	84,831	35,276	84,831
TOTAL				2,568,144	3,404,852	2,567,904	3,404,612

ended 31	August 2021	August 2021
Creditors	due after more		than one	year
						The	Grou	The Com	an
						2021	2020	2021	2020
Long term loans Advanced Fees Payments than one year			Scheme	due	more	554,927 146,837	446,915 88,750	554,927 146,837	446,915 88,570
TOTAL						701,764	535,665	701,764	535,665
Loan maturity analysis
Repayable Repayable Repayable	in less than in 1-2years in 2-5years	1 year (Note		13)		91,872 119,341 385,406	71,149 75,205 251,464	91,872 119,341 385,406	71,149 75,205 251,464
Repayable	in more than	5	years			51,041	120,246	51,041	120,246
TOTAL						647,660	518,064	647,660	518,064

Advanc	e	d Fees Payment Scheme
Parents		may enter into a contract	to pay the School tuition fees		in advance. The money			may be
returned,		subject to specific conditions,		upon the receipt of one term's		notice. Assuming	pupils will
remain	in the School, advance fees		will	be applied as below:
						2021		2020
						F
Due within one year						53,988		55,727
Advanced		Fees Payments Scheme	due	more than one year		146,837		88,750
TOTAL						200,825		144,477
The balance represents the accrued			liability under the contracts.
The movements during the year were:						2021		2020
								E
Balance		at beginning ofthe year				144,477		362,605
Amounts		received during the year				132,849		20,155
Amounts		credited to pupil accounts	for fees			(76,501)	(238,283)
Balance		at end ofyear				200,825		144,477

current	and	former	parents and from	Old Hawthorn	ians.
			Balance at	Income	Expenditure	Transfers	Balance
			1				at
			September				31 August
			2020				2021
			F
The	Hawthorns		385,202	1,205			386,407
Foundation
Designation		of
Fund
Bursary	Fund		165,723	1,205			166,928
Capital	Projects		182,149				182,149
Fund
Endowment		Fund	37,330				37,330
TOTAL			385,202	1,205			386,407

			Balance at	Income	Expenditure	Balance
		1	September			at
			2020			31 August
						2021
						F
The	Company		5,850,260	5,890,510	6,012,218	5,728,552
The	Group		5,843,232	5,890,510	6,012,216	5,721,526