2023-08-31-accounts - The Hawthorns Educational Trust Limited

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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

ey executives, pro	ey executives, pro	fes	sion	al advisers and	contact information:
Headmaster					Mr A E Floyd
Bursar and Company			Secretary		Mr D St John Parker
Senior Leadership		Team			Mr A Duggan, Miss S C Fowler, Ms A M Gallagher (appointed 30'"May 2023), Mr M W Goldhawk, Mrs K-A Kirkman (appointed 1"September 2022), Mr A
					J Morris, Mr A W Raja, Mr		R Skottowe,	Mrs	F E
					Westwood.
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

The Hawthorns Educational Trust Limited INDEPENDENT AUDITOR'S REPORT Year Ended 31 August2023 Responsibilities of Governors As explained more fully in the Governors, responsibilities statement set out on page 8, the Govemors (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 Governors determine is necessary to enable the preparation of financial ststements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the governors are responsible for assessing the charitable company's ability to continue as a going conrn, disclosing, as applicable, matters related lo 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 $0. Auditor's responsibilities for the audit of the financial statements Our objectives are to oblain 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) wll always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material rf, 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 audrfL of the financial statements is located on the Financial Reporting Council's website at.. https'./lwww.frc.org.uklOur-WorklAudiUAudit-and-assurancelStandards-and- guidancelstand8rds-and-guidance-for-auditors/Auditors-responsibilities-for-audiUDescription-of-auditors- responsibilities-for-audit.aspx. This description forms part of our auditorfs report. li

ncluding income 8 Expenditure ear Ended 31 August 2023	Account	)
	Notes	Unrestricted	Restricted	TOTAL	TOTAL
		Funds	Funds	2023	2022
INCOME FROM:
Donations and legacies			1,000	1,000	1,591
Charitable activities
Fees receivable		7,231,883		7,231,883	6,213,680
Other trading activities
Sports Centre Protection fees		591,727 155		591,727 155	618,230 761
Other income		438,814		438,814
Total Income		8,262,579	1,000	8,263,579	6,834,262
EXPENDITURE ON:
Raising funds Sports Centre Fundraising (The Hawthorns		690,025		690,025	644,886 250
Foundation)
Charitable Activities
Education		6,718,769		6,718,769	6,090,608
Total Expenditure		7,408,794		7,408,794	6,735,744
NET INCOME/(EXPENDITURE)		853,785	1,000	854,785	98,518
Transfers between funds	16	99,491	(99,491)
NET MOVEMENT IN FUNDS		953,276	(98,491)	854,785	98,518
Reconciliation offunds
Total funds brought forward		5,887,481	318,970	6,206,451	6,107,933
Total funds carried forward		6,840,757	220„479	7,061,236	6,206,451

CONSOLIDATED BALANCE As at 31 August 2023	SHEET
	Notes		2023		2022
FIXEDASSETS					E
Tangible Assets	10		9,650,894		7,881,808
CURRENT ASSETS
Debtors Cash at bank and in hand	12	1,896,240 1,254,269		1,785,606 322,084
Total Current Assets		3,150,509		2,107,690
Creditors, due within one year				3,186,195
NET CURRENT LIABILITIES			(367,212)		(1,078,505)
LONG TERM LIABILITIES
Creditors, due after more than	14		(2,222,446)		(596,852)
one year
TOTAL NET ASSETS			7,061,236		6„206,451
Represented by
Unrestricted Fund	17		6,840,757		5,887,481
Restricted Fund	16		220,479		318,970
TOTAL NET FUNDS			7,061„236		6,206„451

OMPANY BALANCE SHEET s at 31 August 2023
	Notes		2023		2022
					F
FIXEDASSETS
Tangible Assets Investment in subsidiary	10 11		9,540,894 71,534		7,771,808 71,534
			9,612,428		7,843,342
CURRENT ASSETS
Debtors	12	1,941,492		1,830,858
Cash at bank and in hand		1,254,269		322,084
Total Current Assets		3,195,761		2,152,942
Creditors, due within one year				3,185,955
NET CURRENT LIABILITIES			(321,720)		(1,033,013)
LONG TERM LIABILITIES
Creditors, due after more than	14		(2,222,446)		(596,852)
one year
TOTAL NET ASSETS			7,068,262		6,213,477
Represented by
Unrestricted Fund	17		6,847,783		5,894,507
Restricted Fund	16		220,479		318,970
TOTAL NET FUNDS			7,068,262		6,213,477

			2023		2022
Cash flows from operating activities:
Net income/expenditure for the Adjustments for:	year	854,785		98,518
Depreciation Decrease/(Increase) in debtors (Decrease)/Increase in creditors		419,989 (110,634) 225,323		444,406 (522,058) 786,617
Net cash provided by/(used operating activities	in)		1,389,463		807,483
Cash flows from investing activities
Purchase oftangible fixed assets		2,189,075		260,867
Net cash provided by/(used investing activities	in)		(2, 189,075)		(260,867)
Cash flows from financing activities
Cash inflows from new borrowing Repayments of borrowing Net cash provided by/(used financing activities	in)	1,851,236 119,439	1,731,797	~91,993	(91,983)
Change in cash and cash equivalent in the year			932,185		454,633
Cash and cash equivalents at the beginning ofthe year			322,084		(132,549)
Cash and cash equivalents at the end ofthe year			1,254,269		322,084
Analysis of cash and	cash
equivalents
Cash at bank and in hand			1,254,269		322,084
Total cash and cash equivalents			1,254,269		322,084

3	Income from	Charitable	Charitable	Activities		2023	2022
	Gross fees					7,239,896	6,241,386
	Less: bursaries,		scholarships	and discounts		(428,791)	(337,889)
						6,811,105	5,903,497
	Extras					420,778	310,183
						7,231,883	6,213,680
4	Income from	Other Trading		Activities		2023	2022
						E	E
	Sports Centre Other lettings	income and activities				591,727	602,650 15,580
						591,727	618,230
5	Other income					2023	2022
	Proceeds from		sale ofWest	Lodge (from subsidiary	accounts)	438,814
						438,814

		Staff Costs	Other	Depreciation	Total	Total
					2023	2022
Cost of raising funds
Fundraising						250
Lettings (inc. Sports Centre		382,299	307,726		690,025	644,886
exp)
Total cost of raising funds		382,299	307,726		690,025	645,136
Teaching Welfare Premises Finance costs Support Governance	and	3,515,941 109,503 172,623 466,269	353,318 521,874 556,829 121,063 481,360	179,076 240,913	4,048,335 631,377 970,365 121,063 947,629	3,727,127 527,922 912,212 57,139 866,208
Total charitable expenditure		4,264,336	2,034,444	419,989	6,718,769	6,090,608
Total Expenditure		4,646,635	2,342,170	419,989	7,408„794	6,735,744

Analysis	of	support	and Go	vernance	costs
						2023	2022
Governance		costs:
Auditors'	remuneration		for audit services			13,440	12,790
						13,440	12,790
Support	costs:
Auditors'	remuneration		for non	audit services		11,736	10,425
Support	staff	wages,	national	insurance	and pension	466,269	440,778
Other support		costs				456, 184	402,215
						947,629	866,208

7 Comparative Statem	ent	ofFinancial Activities	—Year Ended 31 August	2022
			Unrestricted	Restricted	Total
			Funds	Funds	2022
					E
INCOME FROM:
Donations and legacies			1,591		1,591
Charitable activities
Fees receivable			6,213,680		6,213,680
Other trading activities Sports Centre Protection fees			618,230 761		618,230 761
Total Income			6,834,262		6,834,262
EXPENDITURE ON:
Raising funds Sports Centre Fundraising (The Hawthorns		Foundation)	644,886 250		644,886 250
Charitable Activities
Education			6,090,608		6,090,608
Total Expenditure			6,735,744		6,735,744
NET INCOME			98,518		98,518
Transfers between funds			67,437	(67,437)
Net movement in funds			165,955	(67,437)	98,518
Fund balances brought	forward		5,721,526	386,407	6,107,933
Fund balances carried	forward		5,887,481	318,970	6,206,451

				2023	2022
Salaries and wages Social security costs Pension costs				3,706,795 358,816 581,024	3,470,051 340,264 554,158
				4,646,635	4,364,473
Number F60,000	ofemployees	whose emoluments	for the year exceeded	2023	2022
			f60,000to f69,999
			280,000to F89,999
			890,000to 299,999
			F140,000to f149,999
			f150,000tof159,999

						2023	2022
			Teaching and teaching assistants (term time)			63	55
Others (administration,				kitchen, maintenance	and sports centre)	33	33
						96
key management		personnel		ofthe school are detailed in the Governors'		Report.
						2023	2022
Aggregate	employee		benefits of key management		personnel	948,542	895,399

		2023	2022
		F	F
Included	within the operating surplus for the year are the following:
Charitable Activities -Education
Operating	lease rentals (inc. VAT)	42,856	49,568
Governance
Auditors' Auditors'	fees —audit services (inc. VAT) fees —other services (inc. VAT)	13,440 11,736	12,790 10,425

The movement oftangible fixe	d assets was as f	ollows:
THE GROUP	Freehold	Electrical,	Fixtures,	TOTAL
	property	computer 8	fittings, tools
		garden	8 equipment
		equipment
Cost
At beginning ofyear Additions	11,253,883 2,040,597	471,141 9,021	789,531 139,457	12,514,555 2,189,075
At end ofyear	13,294,480	480,162	928,988	14,703,630
Accumulated Depreciation At beginning ofyear Charge for year	3,800,815 289,653	365,346 51,206	466,586 79,130	4,632,747 419,989
At end ofyear	4,090,468	416,552	545,716	5,052,736
Net BookValue
At beginning ofyear	7,453,068	105,795	322,945	7,881,808
At end ofyear	9,204,012	63,610	383,272	9,650,894
THE COMPANY
Cost
At beginning ofyear Additions	11,143,883 2,040,597	471,141 9,021	789,531 139,457	12,404,555 2,189,075
At end ofyear	13,184,480	480,162	928,988	14,593,630
Accumulated Depreciation
At beginning ofyear Charge for year	3,800,815 289,653	365,346 51,206	466,586 79,130	4,632,747 419,989
At end ofyear	4,090,468	416,552	545,716	5,052,736
Net BookValue
At beginning ofyear	7,343,068	105,795	322,945	7,771,808
At end ofyear	9,094,012	63,610	383,272	9,540,894

Debtors
		The	Group	The Com	an
		2023	2022	2023		2022
			F			F
Fees receivable Other debtors Prepayments		1,737,613 16,157 142,470	1,645,841 14,380 125,385	1,737,589 16,157 142,470	1,645,817 14,380 125,385
Loan to subsidiary	company			45,276		45,276
TOTAL		1,896,240	1,785,606	1,941,492	1,830,858

Creditors due	within one y	ear
			The	Grou	TheCom	an
			2023	2022	2023	2022
				F
Fees charged in advance Bank loans and overdrafts			2,338,080 180,659	2,384,632 119,446	2,338,080 180,659	2,384,632 119,446
Other creditors fees received	and school in advance	(Note 15)	975,186	639,381	974,946	639,141
Accruals			23,796	42,736	23,796	42,736
TOTAL			3,517,721	3,186,195	3,517,481	3,185,955

ear	ended 31	August 2023	August 2023
14	Creditors	due after more		than one year
					The Grou		The Com	an
					2023	2022	2023	2022
								E
	Long term	loans			2,105,954	435,370	2,105,954	435,370
	Advanced	Fees Payments		Scheme due more	116,492	161,482	116,492	161,482
	than one year
	TOTAL				2,222,446	596,852	2,222,446	596,852
	Loan maturity analysis
	Repayable	in less than	1 year (Note 13)		180,659	119,446	180,659	119,446
	Repayable	in 1-2years			225,914	123,826	225,914	123,826
	Repayable	in 2-5 years			475,348	311,550	475,348	311,550
	Repayable	in over 5years			1,404,692		1,404,692
	TOTAL				2,286,613	554,822	2,286,613	554,822

remain in the School, ad	vance fees	will be applied as below:
			2023	2022
Due within one year			57,740	120,176
Advanced Fees Payments Scheme		due more than one year	116,492	161,482
TOTAL			174,232	281,658
The balance represents	the accrued	liability under the contracts.
The movements during the year were:			2023	2022
			F	E
Balance at beginning of	the year		281,658	200,825
Amounts received during	the year		16,508	175,663
Amounts credited to pupil accounts		for fees	(123,934)	(94,830)
Balance at end ofyear			174,232	281,658
				26

	Designated	Unrestricted	Restricted	Group
At 31 August 2023 Fixed Assets		9,650,894	E	E 9,650,894
Current Assets	438,814	2,491,216	220,479	3,150,509
Current Liabilities		(3,517,721)		(3,517,721)
Long-term Liabilities	438,814	2,222,446 6,401,943	220,479	2,222,446 7,061,236
		Unrestricted	Restricted	Group
At 31 August 2022 Fixed Assets		7,881,808	F	E 7,881,808
Current Assets		1,788,720	318,970	2,107,690
Current Liabilities Long-term Liabilities		(3,186,195) 596,852		(3,186,195) 596,852
		5,887,481	318,970	6,206,451

Total lease commitments for assets held under oper	ating leases are f36,348 (2022:F61,	221).
	2023	2022
	E	E
Within one year Between two and five years	32,754 3,594	33,825 27,396
	36,348	61,221