## ## ## ## |||||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| ## ## ## ## ## |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 con￿rn, 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|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| ## ## ## ## ## ##