THE HAWTHORNS SCHOOL THE HAWTHORNS EDUCATIONAL TRUST LIMITED (a Registered Charity and Company Limited by Guarantee) and its subsidiary company operating as The Hawthorns School GOVERNORS, ANNUAL REPORT AND AUDITED CONSOLIDATED ACCOUNTS For the year ended 31 August 2024 Company Registration Number-00949504 Charity Commission ReElStration-Number-312067 ii'ii'ii..haw"thorns.com
The Hawthorns Educational Trust Limited CONTENTS 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 Cashflow Staternent 17 Notes to the Accounts 18
The Hawthorns Educational Trust Limited GOVERNORS. ANNUAL REPORT (incorporating a Group Strategic Report} Year Ended 31 August 2024 The Governors (tho are also directors of the Charity for the purposes of the Companies Act} present their Annual Report, together with the Audited Accounts of The Hawthorns Educational Trust Limited (the Company) for the yeai ended 31 August 2024, which are also prepared to meet the requirements for a directors, report and accounts for Companies Act purposes. The accounts comply with the Charities Act 2011, the Companies Act 2006. the School's Memorandum and Articles of Association, and Accounb'ng 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). STRUCTURE, GOVERNANCE AND MANAGEMENT The Hawthorns School was founded in 1926. The Hawthorns School Educational Trust Limited (the Trust) is a company limited by guarantee, number 00949504, and was registered at Companies House on 7 March 1969.The Trust is a registered charity, number 312067. registered at the Charity Commission on 7 May 1970. The charity is governed by its Memorandum and Articles of Association dated 7 May 1970. The charity operates The Hawthorns School. a co- educational pre-preparatory and preparatory school for pupils aged 2 to 13, in Bletchingley, Surrey. Governors The Governors, who a the directors of the Group for the purposes of company law, and are the charity trustees, for the purposes of charity law. during the year and since, were as follows.. Mr BJC Dyer" Mr LWJ Baart (resigned 31 July 2024} Mr RJ Buckingham . Mr MJ Dockery ' Mr RHC Kirkland . Mr HJW Oliver" roirs SE Raja ' Mr SJO Roche . Mr DWJ Searle Mr MB Tinker" Mrs BS Lee (appointed 29 August 2024)
Governor, director and charity trustee at date of signing these accounts. ** Parent of current pupil at date of signing these accounts.
The Hawthorns Educational Trust Limited GROUP GOVERNORS, ANNUAL REPORT (incorporating a Group Strategic Report) Year Ended 31 August 2024 Governing body Governors are electecl by the governing body. At each annual general tmeeting the nearest number to one third of the total Governors retire and are eligible for re-election. The Governors to retire each year are those who have been longest in office sill their last election. In order to maintain a broad skill mix, Governors are selected from a wide range of professions and, in the event of particular skiSls being lost due to retiremen( individuals with the requisite skills are approached to offer themselves for election to the goveming body. Governors derive no financial benefit from their office other than as shown in the notes to the accounts. but are reimbursed for any travel or administrative expenses. Governor induction and training Governor induction, following appointment. comprises the review of a portfolio of documentation covering all aspects of the Group, including the most rent audited accounts, the Mernorandum and Articles of Association, copies of Board Meeting Minutes, School Prospectus. recent newsletters to parents, staff lists with responsibilities, govemance documentation with sub-committee details and a copy of the Charity Commission publication, 'The Essential Trustee,. Governor5 are expected to attend Subcommitt meetings (depending on their skills" see subcommittee details below) as required and to attend temly Board Meetings. Governors are encouraged to visit the School during term time, to meet the pupils, Headmaster, Bursar and Senior Leadership Team. Training, after appointrnent, is provided by comprehensive mailing of infonmation relevant to the School's day to day activities and by a fomial training session held each year at a board meeting. The Chairman of Govemors attends an outside training course run by IAPS (Independent Association of Preparatory Schools) during the first year of office. Govemors are encouraged to visit the Charty Cornmission website for up to date information. Key executives. professional advisers and cortsct information: Headmaster MrA E Floyd Bursar and Company Secretary Mr P I Walker (appointed 22 April 2024) Senior Leadership Tearn MrA Duggan, Miss S C Fowler, Ms A M Gallagher. Mr M W Goldhawk, Mrs K-A Kirkman. MrA J Morris. Mr A W Raja, Mr R Skottowe, Mrs F E Westwood. Address and Registered Offi The Hawthorns Educational Trust Limited TIA The Hawthorns School Pendell Court Bletchingley, Surrey RH14QJ
The Hawthorns Educational Trust Limited GROUP GOVERNORS. ANNUAL REPORT (incorporating a Group Strategic Report) Year Ended 31 August 2024 Bankers Lloyds Bank plc 1 London Road Redhill Surrey RHI IND Auditors TC Group The Courtyard Shoreharn Road Upper BdIng Steyning West Sussex BN44 3TN School Website www.hawthoms.corn Email office@hawthorns.com Organisational management The Govemors determine the general policy of the Trust. The key management personnel of the School are the Govemors, the Headmaster. the Bursar and the Senior Leadership Team. The Governors meet, as a body, at least once each term. Various sul>committees meet to deal with matters during the year as required. At the date of signing these accounts the sub-committees comprise: Education subcommittee SE Raja (Chair),SJO Roche, the Headmaster and other senior School staff. This committee works to improve the quality of education in the School. Finance and General Purposes subcommittee DWJ Searle (Chairman). BJC Dyer, MJ Dockery, RHC Kirkland, Mr HJW Oliver. the Headmaster and the Bursar. This Committ covers The Hawthorns Foundation. finance, estates, staffing and general management of the School. Marketing subcommittee BJC Dyer (Chairman), the Headmaster and other School personnel as appropriate. This committee deals wffch the marketing and presentation of the School. Health and Safety subcomrnittee MJ Dockery (Chaimian), the Bursar and other School staff. This committee is responsible for agreeing health and safety policies and strategy across the School. Safeguarding & HR subcommlttee RJ Buckingham (Chaimian), MB Tinker, the Headmaster, the Bursar and other senior School staff. This committee is responsible for safeguarding. recruitment. welfare and retention of etnployees of the School. The remuneration of the Headmaster and the Bursar is set by the Board, wth the policy objective of providing appropriate incentives to encourage enhand perfonnance and of rewarding them fairly and responsibly for their individual contributions to the School's sUsS. The appropriateness and relevance of the remuneration policy is reviewed annually, including reference to comparisons with other independent schools to ensure that the School remains sensitive to the broader issues of pay and employment conditions elsewhere.
The Hawthorns Educational Trust Limited GROUP GOVERNORS, ANNUAL REPORT (incorporating a Group Strategic Report) Year Ended 31 August 2024 OBJECTS, AIMS, OBJECTIVES AND ACTIVITIES The objects are set out in the Memorandum of Association as the education of girls and boys aged 2 to 13. It is the aim of the Trust. as an independent educational establishment, to lay academic, physical and moral foundations of the highest quality. These foundations will equip the School's pupils with self- confidence and a desire to contribute to the wider communty and, in preparing them for the next stage of their education, will enable them to face and overcome the many challenges of lrfeahead. In setting objectives and planning actNities, the Govemors have gNen due consideration to the Charity Commission's general guidance on public benefit and in particular to its supplementary public benefit guidance on advancing education and on feha[ging. STRATEGIC REVIEW Achievements and Perfonnance The School enjoyed a successful academic year with over 31 Yo of leavers being awarded scholarships to join their senior school. School Development Plans have b*n focused upon the completion of a new Nursery building ancl the extension of nursery provision. In the School, Pupils have continued to enjoy success in a wide variety of sports. activities. and creative pursutts. The all-round education that the Hawthoms seeks to deliver continues to result in high levels of pupil success. Efforts continue to ensure that no suitable pupil is denied an education at the School on the grounds of affordability. Accordingly, the Govemors are pleased to offer means-tested bursaries (assisted plas} to parentswith limited income, During theyear bursary awards were madeto 8pupils (2023: 11) and their value was £89,011 (2023: £118,560). Post Balance Sheet event The Governors are considering a strategic allian wrth Caterham School. Significant recent extemal events, including the imposrtion of VAT on school fees, the removal of business rates relief and increases in costs of employing staff have given the School significant challenges which are best met from a position of financial strength. The Governors collectNely have concluded that a combination with Catetham School will result in a group better able to provide the outstanding education that our pupils desetve. Financial Review The Trust reiVed total income of £8.441,379 (2023: £8,263.579) and the consolidated net incoming resources for the year amounted to £15,363 (2023: net incoming resources of £854,785). Total funds carried forward were £7,076,599 which includes £25,000 of restricted funds (2023: £7,061,236 which included £220.479 of restricted funds). The balance of £7,051.599 is held as unrestricted funds (2023: £6.840,757). Capital expenditure has been undertaken to make improvements to the School facilities. This amounted to £627,904 during the year (2023: £2,189,075). There is a plan of continuous upgrading of the School'sfacilities to keep pace with the requirements of a leading pre-preparatory and preparatory school.
The Hawthorns Educational Trust Limited GROUP GOVERNORS, ANNUAL REPORT (incorporating a Group Strategic Report) Year Ended 31 August 2024 Investment in subsidiary The Trust owns 1000A of the shares of its subsidiary company, The Hawthorns (Pendell Court) Limited, which in turn owns the freehold of the premises occupied by the Trust. The accounts consolidate the financial statements of both companies. The subsidiary is a non-trading company and the latest un-audited accounts have been made up to 5 April 2024 and rt is these accounts that have been used in the consolidation. Both companies are incorporated in the United Ktngdom and registered in England and Wales. Reserves policy All unrestricted funds are used to finance building development projects and generally improve the overall facilities of the School. Donations towards specific projects are included within restricted funds. Donations to The Hawthorns Foundation are allocated to restricted funds. General donations are allocated to unrestricted funds. The Govemors have assessed the assets available and the obligations of the Trust and have concluded that the assets are sufficient to tneet its obligations. based on current operations and pupil numbers. Plans for Future Periods The School is planning ahead and examining ways in which it could adapt to the change in taxation imposed by the new government. The priority forthe School must be the development of a sustainable financial model given that that Business Rate Tax Relief will be withdrawn, VAT will be imposed upon school fees and employment taxes will rise significantly. Consequently, all plans focus on ensuring the School is in the best position to offer an excellent eduGation at an affordable pri. The School has been active in ensuring that all new families are welcorned and enjoy a Hawthoms education for their child. The School's marketing and admission policy has ensured that the School represents the ethnicity of the local area. The School sees that this year 24 % of rts intake comes from ethnically diverse families. The EDI cornrnittees (staff and parents) review and monitor ways in which Ihe School can leam and become more inclusive. Principal Risks and Uncertainties The Governors assess the major risks to which the School is exposed, particularly relating to its operatr'ons and finances. on a regular basis. The most significant risk is considered to be a possible fall in the number of pupils attending the School. especially in with high cost of living landscape, the imposition of VAT on and other costs affecting school fees and a declining birth rate.
The Hawthorns Educational Trust Limited GROUP GOVERNORS, ANNUAL REPORT (incorporating a Group Strategic Report) Year Ended 31 August 2024 STATEMENT OF GOVERNORS. RESPONSIBILITIES The Govemors, who are also the directors of The Hawthorns Educational Trust Limited for the purposes of company law, are responsible for preparing the Governors, Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Governors to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the Trust and its subsidiary and of the incorning resources and application of resources. including the income and expenditure, of the group for that year. In preparing those financial statements, the Govemors are required to: select suitable accounting policies and then apply them consistently: observe the methods and principles in the SORP,. make judgements and estimates that are reasonable and prudent., and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group will continue in business. The Governor5 are responsible for keeping adequate accounting records which disclose with reasonable accuracy at any time the financial position of the Trust and which enable them to ensure that the financial statements comply wtth the Companies Act 2006. They are also responsible for safeguarding the assets of the Trust and hen for taking reasonable steps for the prevention and detection of fraud and other irregularities. DISCLOSURE OF INFORMATION TO AUDITORS Each of the Governors has confinned that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confimied that they have taken appropriate steps to identify such relevant information and to establish that the auditors are aware of such infonnation. AUDITORS A resolution proposing the re-appointmentof TC Group as auditOTS to the company will be put to the annual general meeting. This report, IncoOratIng the Strategic Report, was approved by Board of Governors on 7 December 2024 and signed on behalf of the Board. th BJC Dy Chair of
The Hawthorns Educational Trust Limited INDEPENDENT AUDITOR'S REPORT Year Ended 31 August 2024 Opinion We have audited the financial statements of The Hawthorns Educational Trust Limited (the 'charitable company,) and its subsidiary (the 'group') for the year ended 31 August 2024. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom AGcounting 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 group's and the parènt charitable company's affairs as at 31 August 2024 and of its incoming reSoUrS and application of resources, including its income and expenditure, for the year then ended" have been properly prepared in accordance with United Kingdom Generally A¢pted Accounting Practice; and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordan with Intemational 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 accordan 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. Conclusions relating to going concern In auditing the financial statements, we have concluded that the governors, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfomed. we have not identified any material uncertainties relating to events or conditions that, individually or collectively. may cast doubt on the group and parent charitable company's ability to continue as a going conrn for a period of at least 12 months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the governors with respect to going concern are described in the relevant sections of this report.
The Hawthorns Educational Trust Limtted INDEPENDENT AUDITOR'S REPORT Year Ended 31 August 2024 Other information The Governors are responsible for the other information. The other information comprises the information included in the Governors. annual report, other than the financial statements and our auditorf5 report thereon. Our opinion on the financial statements does not cover the other information and, eXpt 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 ststements, our respsibIlIty 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 rnisstatements. we are required to deterrnine 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 perfomed. 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. Opinions 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 Governors, annual report (incorporating the strategic reporl and the directors, ieport) for the financial year for which the financial statements are prepared is consistent with the financial ststements- and the strategic report and the directors. report have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of our knowledge and understanding of the group and charitable company and rts environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and 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, or retums adequate for our audit have not been received from branches not visited by us., or the financial statements are not in agreement with the accounting records and returns- or certain disclosures of directors, remuneration specified by law are not made" or we have not reiVed all the information and explanations we require for our audit. io
The Hawthorns Educational Trusl Limited INDEPENDENT AUDITOR'S REPORT Year Ended 31 August 2024 Responsibilities of Govemors As explained more fvlly in the Governors, responsibilities statement set out on page 8, the Govemors (who are also the directors of the charrtable 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 Govemors determine is neSSary to enable the preparation of financial statements that a free from material MESStatennt, whether due to fraud or eOr. In preparing the financial statements. the governors are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable. matters related to going concem and using the going concern basis of accounting unless the governors either intend to liquidate the charitable company r to ase operations. or have no realistic alternative but to do so. Auditor's responslbilities for the audit of the financial statements Our objectives are to obtain reasonable assuran aEy)Lrt whether the financial statements as a whole are free from material misstatement. whether due to fraud or error, and to issue an auditorfs report that includes our opinion. Reasonable assuran is a high level of assuran. but is not a guarantee that an audit conducted in accordan with ISAS (UK) will always detect a material misstatement when rt 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 fvrther description of our responsibilities forthe audit of the financial statements is located on the Financial Reporting Council's website at: htt s.'Ilww.frc.or .uklauditorsres our auditor's report. onsibilities. This description forms part of
The Hawthorns Educational Trust Limited INDEPENDENT AUDITOR'S REPORT Year Ended 31 August 2024 Extent to which the audit was consldered capable of detecting irregularities, including fraud The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud. to obtain sufficient appropriate audit eviden regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses. and to respond appropriately to fraud or suspected fraud identified during the audit. However. the primary responsibilrty for the prevention and detection of fraud rests with both those charged with g0Veman of the entity and its management. Our approach was as follows: We identffied areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements frorn our general sector experience, and through discussion with the Governors. and other management (as required by auditing standards), and discussed with the Governors. and other managetnent the policies and procedures regarding cornplian with laws and regulations (see below)" We identified the fo15owing areas as those most likely to have such an effect: health and safety. General Data Protection Regulation (GDPR)" fraud", bribery and corruption, school inspections, keeping children safe in education (statutory guidance), DBS checks and employment law. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the trustees and other management and inspection of regulatory and legal corresponden, if any. The identified actual or suspected non-compliance was not sufficiently Significant to our audit to result in our response being identified as a key audit matter. We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102, the Companies Act 2006 and the Charities Act 2011) and the relevant tax compliance regulations in the UK. We considered the nature of the charitable company's operations, the control enlironment and financial performance. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-complian throughout the audit" We considered the prOdureS and controls that the charitable company has established to address risks identified, or that otherwise prevent. deter and detect fraud. and how senior management monitors those programmes and controls. Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher. we performed audit procedures to address each identified fraud risk. These prOdureS included: testing manual joumals., reviewing the financial staternent disclosures and testing to supporting documentation: performing analytical prOdures', and enquiring of management, and were designed to provide reasonable assuran that the financial statements were fr from fraud or error. 12
The Hawthorns Educational Trust Limited INDEPENDENT AUDITOR'S REPORT Year Ended 31 August 2024 Owing to the inherent limitations of an audit. there is an unavoidable risk that we may not have detected some rnaterial misstatements in the financial statements. even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance wÈth laws and regulations (irregularities) is frotn the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk 15 also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional cOnalment, forgery. collusion. omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. Use of our report This report is made solely to the charitable companvs 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 pertnitted by law. we do not accept or assume responsibility to anyone other than the charitable company and the charitable companvs members as a body, for our audit work, for this repart, or for the opinions we have formed. Mark Cummins FCCA (Senior Statutory Audltor) for and on behalf of TC Group Statutory Auditors Office.. Steyning. West Sussex Dated: 1% lol5 13
The Hawthorns Educational Trust Limited CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Including Income & ExpendÈture Account) Year Ended 31 August 2024 Notes Unrestricted Funds Restricted Funds TOTAL 2024 TOTAL 2023 INCOME FROM: Donations and legacies 4g5 495 1,000 Charitable activities Fees receivable 7.781,704 7,781,704 7,231,883 other trading activities Sports Centre Protection fees 658.985 195 658,985 195 591,727 155 Other income 438 814 Total Income 8,441,379 8.441379 8.263,579 EXPENDITURE ON: Raising funds Sports Centre Charitable Activities Education 659,536 659,536 690,025 7.766 480 7,766,480 6,718,769 Total Expenditure 8 426 016 8,426,016 7 408 794 NET INCOME 15,363 15,363 854,785 Transfer between funds 16 195,479 (195.479) NET MOvEmEr IN FUNDS 210,842 (195,479) 15,363 854,785 Reconciliation of funds Total funds brought forward 6,840 757 220.479 7,061,236 6,206,451 Total funds carried forward 7.051.599 25,000 7.076,599 7,061236 This statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. All activib'es are classed as continuing. There are no recognised gains or losses other than those pOrted on the Statement of Financial Activities. i*
The Hawthorns Educational Trust Limited CONSOLIDATED BALANCE SHEET As at 31 August 2024 Notes 2024 2023 FIXED ASSETS Tangible Assets 10 9,834,998 9,650,894 CURRENT ASSErs Debtors Cash at bank and in hand 12 1,778,461 2,017.712 1,896,240 1,254,269 Total Current Assets 3.796.173 3,150.509 Creditors, due within one year 13 3,652.997 3,517.721 NET CURRENT ASSETSI(LIABILITIES) 143.176 {367,212) LONG TERM LIABILITIES Creditors, due after more than one year 14 (2,901,575) (2,222,446) TOTAL NET ASSETS 7,076,599 7,061,236 Represented by Unrestricted Fund 17 7.051,599 6,840,757 Restricted Fund 16 220,479 TOTAL NET FUNDS 7,076,599 7 061,236 These accounts were approved by the board on 1-tr(6i&FK QYIP BJCDyer ha D W J Searle Governor Cornpany number 00949504. 15
The Hawthorns Educational Trust Limited COMPANY BALANCE SHEET As at 31 August 2024 Notes 2024 2023 FIXED ASSETS Tangible Assets Investment in subsidiary 10 11 9,724,998 71,534 9,540,894 71,534 9,796,532 9,612,428 CURRENT ASss Debtors Cash at bank and in hand 12 1,778,437 2.017.712 1.941,492 1.254,269 Total Current Assets 3,796.149 3,195,761 Creditors, due within one year 13 3,652,757 3517481 NET CURRENT ASSETSI(LIABILITIES) 143.392 (321,720) LONG TERM LIABILITIES Creditors, due after more than one year 14 (2,901,575) (2,222,446) TOTAL ASSErs 7,038,349 7 068,262 Represented by Unrestricted Fund 17 7,013,349 6,847,783 Restricted Fund 16 25,000 220,479 TOTAL NET FUNDS 7.038,349 7.068,262 These accounts were approved by the board on 77Hi ¥ qov* BJCDyer D W J Searle Governor Company number 00949504. 16
The Hawthorns Educational Trust Limited CONSOLIDATED CASH FLOW STATEMENT Year ended 31 August 2024 2024 2023 Cash flows from operating activities: Net incomelexpendlture for the year Adjustments for: Depreciation Interest payable Decreasel(Increase) in debtors Increase in creditors 15.363 854,785 443.978 184,043 117,779 419,989 57,880 (110,634) 225,323 Net cash provided by operating activities 1,201,584 1,447,343 Cash flows from investing activities Purchase of tangible fixed assets Net cash used in investing activities 627.904 2,189,075 (627,904) (2,189,075) Cash flows from financing activities Cash inflows from new borrowing Repayments of boThowng Interest payable Net cash provlded by financing activities 443,076 (69.270) 184,043 1.851,236 (119,439} 57,880 189,763 1,673,917 Change in cash and cash equivalent in the year 763.443 932,185 Cash and cash equivalents at the beginning of the year 1.254.269 322,084 Cash and cash equivalents at the end of the year 2,017.712 1,254,269 Analysis of cash and cash equivalents Cash at bank and in hand Bank loans within one year Bank loans after one year Total cash and cash equivalents 2.017.712 (67,520) 2.593,077 {642,885) 1,254,269 (180,659) 2,105,954 {1,032,344) 17
The Hawthoms Educational Trust Limited NOTES TO THE ACCOUNTS Year ended 31 August 2024 1 STATUTORY INFORMATION The charity is a charitable company, limited by guarantee, registered in England and Wales. The registered offi, company number and charty number are detailed in the Governors, annual report. 2 ACCOUNTING POLICIES Basis of preparation The accounts have been prepared under the Companies Act 2006 and in accordance with the Charities, Statement of Recommended Practice (SORP (FRS 102)) and Financial Reporting Standard 102. The charitable company meets the definrtion of a public benefrt entty under FRS 102. Assets and liabilrties are initially recognised at cost or transaction value unless otherwise stated in the relevant accounting policy. After reviewing the charity's forecasts and projections, the Govemors have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity therefore continues to adopt the going conrn basis in preparing its accounts. Currency The Group presents its accounts in Sterling and figures are rounded to the nearest £. Group accounts The accounts consolidate the results of the chartty and its wholty owned subsidiary The Hawthoms (Pendell Court) Limited on a line by line basis. A separate Ststement of Financial Activrties (including income and expenditure account) for the charity has not been presented as the charty has taken advantage of the exemption afforded by section 408 of the Companies Act 2006. The subsidiary is a non-trading Gompany. Its latest un-audited accounts have been made up to 5 April 2024 and it is these accounts that have been used in the consolKlation. Income Donations received for the general purposes of the School are credited to unrestricted funds except insofar as they are incapable of financial measurement. Donations for purposes restricted by the wishes of the donor are taken to restricted funds where these wishes are legally binding on the charity. School fees re1vable and charges for services and use of premises are accounted for in the period in which the Servi is provided. Fees received in advan of education to be provided in future years are held as liabilities until etther taken to income in the tenn when used or else refunded. They are stated after deducting bursaries, scholarships and other fee remissions granted by the School. Sports centre, rental and investment income are accounted for in the period in which they are re1Vable. Other incoming reSoUrS are accounted for when received. Expenditure Expenditure is accounted for on an accruals basis. with value added tax included within the item of expense to which tt relates. Overhead and other costs not directly attributable to a particular functional activity category are apportioned over the relevant categories on the basis of management estimates of the amount attributable to that activity in the year. Governance costs comprise the costs of running the charity. including strategic planning for its future development. also internal and extemal audit, any legal advice for the Governors, and all the costs of complying with Gonstitutional and statutory requirements. such as the cost of board and committee meetings and of preparing statutory accounts and satisfying public accountability. Irrecoverable VAT is attributed directly to the cost to which it relates. 18
The Hawthoins Educational Trust Limited NOTES TO THE ACCOUNTS Year ended 31 August 2024 Assets Fixed assets are shown on the balance sheet at cost less accumulated depreciation. Current assets are shown at the lower of cost and net realisable value. Depreciation Depreciation is provided on fixed assets to write off their cost over their estimated useful lives 8t the following Freehold and short leasehold propety Electrical, computer & garden equipment Fixtures, fittings, tools & equipment 2 % to 10°A straight line 200/0 Straight line 100/0 straight line Pension schemes Teaching staff are members ofthe Teachers. Pension Scheme ITPS). a defined benefrt scheme administered by the Teachers, Pension Agency. Contributions to the scheme are charged to the Statement of Financial Activities as they fall due. The Teachers, Pension Scheme is an unfunded scheme. Contributions on a "pay as you go. basis are credited to the exchequer under arrangements governed by the Superannuation act 1972. Actuarial valuations are carried out on a notional set of investments. Under the definitions set out in FRS 102, the Teachers, Pension Scheme is a multi-employer pension scheme. The school is unable to identify its share of the underlying {notional) assets and liabilities of the scheme. Accordingly, under FRS 102 the scheme is accounted for as if it were a defined contribution scheme. The School also contributes to personal pension schemes for non-teaching staff. Teachers that joined the school from September 2022 are part of this scheme. Operating lease rentsls Rentals paid in respect of assets held under operating leases are taken to the Statement of Financial Activtties as they fall due. Investments Investments consist of a shareholding in the group subsidiary and are held at cost. Cash at bank and in hand Cash at bank and in hand includes cash and short temi highly liquid investments. The Governors seek to use short and medium term deposits where possible to maximise the return on monies held at the bank and to manage cash flow. Creditors and provlslons Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in a transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Debtors Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Fund accounting Unrestricted funds comprise those funds which can be used in accordan wrth the charitable objectives at the discretion of the Govemors. Restricted funds are those fvnds which can be used in accordance with the specific restrictions imposed by the donor or which have been raised by the charity for a specific purpose. The cost of raising and administering such funds is charged against the funds and the School reimburses the costs from unrestricted funds. The aim and use of each restricted fund is set out further in the notes to the accounts. 19
The Hawthorns Educational Trust Limited NOTES TO THE ACCOUNTS Year ended 31 August 2024 Turnover The turnover of the charity is wholly attributable to the object of the charity as stated in the Governors, Report and is earned entirely within the UK. Taxatlon The charitable company is registered as a charity and all of its income falls within the exemptions under Part 11 of the CoOration Tax Act 2010. Deferred taxation in the subsidiary company arising on the valuation of the freehold is not provided for as, in the opinion of the directors of the Group, the liability is unlikely to arise. Critical accounting estimates and judgements In the application of the Group's accounting policies. the Governors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estiTnates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised. The Governors do not consider that there are any critical estimates or areas of judgement that need to be brought to the attention of the readers of the financial statements. 3 Incorne from Charitable Activities 2024 2023 Gross fees Less: bursaries, scholarships and discounts 7.806,427 424,463 7,381,964 399,740 7,781704 7,239,896 428,791 6,811.105 420,778 7,231,883 Extras 4 Income from Other Trading Activities 2024 2023 Sports lettings Sports coaching Camp Hawthoms other trading Total Sports Centre income Other lettings and activities 87.165 355,171 207,260 8,470 658.066 919 658,985 80,823 295,915 206,636 8.353 591,727 591,727 5 Other income 2024 2023 Proceeds from sale of West L¢)Jge (from subsidiary accounts) 438,814 438.814 20
The Hawthorns Educational Trust Limited NOTES TO THE ACCOUNTS Year ended 31 August 2024 6 Analysis of Expenditure Staff Costs Other Depreciation Total 2024 Total 2023 Cost of raising funds Lettings (inc. Sports Centre exp) Total cost of raising funds 364,697 294,839 659,536 690,025 364,697 294.839 659,536 690,025 Teaching Welfare Premises Finance costs Support Governance Total charitable expenditure 4,212.427 28.371 210.355 377,215 615.291 656,217 198.628 547,284 179.076 4,768,718 643.662 1,131.296 198.628 1,024.176 4,048,335 631.377 970,365 121.063 947,629 264,724 and 476.892 4,928,045 2.394.635 443.800 7,766,480 6,718.769 Total Expendlture 5,292.742 2,689 474 8,426,016 7,408 794 Analysis of support and Governance costs 2024 2023 Governance costs- Auditors, remuneration for audit services 13,440 13,440 15,000 Support costs: Auditors, remuneration for non audit seNices Support staff wages. national insurance and pension Other support costs 14,388 476.892 517,896 1.024,176 11,736 466,269 456,184 947,629 Net Income is stated after charging £42.538 (2023: £42,856) to operating lease rentals included within premises costs. 21
The Hawthorns Educational Trust Limited NOTES TO THE ACCOUNTS Year ended 31 August 2024 7 Comparative Statement of Financial Activities- Year Ended 31 August 2023 Unrestricted Funds Restricted Funds Total 2022 INCOME FROM: Donations and legacies 1,000 1,000 Charitable activities Fees receivable 7.231,883 7,231.883 Other trading activities Sports Centre Protection fees 591,727 155 591,727 155 Other income 438.814 438,814 Total Income 8 262 579 1,000 8,263,579 EXPENDITURE ON: Raislng funds Sports Centre 690,025 690,025 Charitsble Activities Education 6.718,769 6,718.769 Total Expenditure 7,408.794 7 408.794 NEf INCOME 853,785 1,000 854,785 Transfers between funds 99.491 (99.491) Net movement in funds 953,276 (98,491) 854,785 Fund balances brought forward 5.887.481 318,970 6 206 451 Fund balances carried forward 6 840 757 220 479 7,061,236 22
The Hawthorns Educational Trust Limited NOTES TO THE ACCOUNTS Year ended 31 August 2024 8 Staff Costs 2024 2023 Salaries and wages Social security costs Pension costs 4.170.437 393,627 728,678 5,292 742 3,706.795 358,816 581,024 4,646.635 Number of employees whose emoluments for the year exceeded £60.000 2024 2023 £60,000 to £69,999 £70,000 to £79,999 £90,000 to £99,999 £150,000 to £159,999 Contributions totalling £115.826 (2023: £97,506) were made during the year to a pension scheme on behalf of the above employees. The average monthly headcount was 149 staff (2023: 138 staffj and the average monthly number of full time equivalent employees during the year was" 2024 2023 Teaching and teaching assistants (term time) Others (administration, kitchen. maintenance and sports centre) 74 28 102 63 33 96 The key management personnel of the school are detailed in the Governors. Report. 2024 2023 Aggregate employ benefrts of key management personnel 1,049,668 948.542 None of the Governors received any remuneration or other benefits from the school or any connected body. Operating Surplus 2024 2023 Included within the operating surplus for the year are the following: Charitable Activities - Education Operating lease rentals (inc. VAT) 42,538 42,856 Governance Auditors, fees - audit SeNiS (inc. VAT) Auditors, fees - other ServIS (inc. VAT) 15,000 14,388 13.440 11,736 As described in the notes to the accounts, no separate Statement of Financial Activities has been prepared for the School alone. The School contributed a deficit of £29,913 to the surplus of the Group for the year (2023.. £415,971 to the surplus). 23
The Hawthorns Educational Trust Limited NOTES TO THE ACCOUNTS Year ended 31 August 2024 10 Tangible Fixed Assets The movement of tangible fixed assets was as follows: THE GROUP Freehold property Electrical, computer & garden equipment Fixtures. fittings, tools & equipment TOTAL Cost At beginning of year- as restated Additions At end of year 13,242.620 480,162 928,988 14,651,770 598.435 13,841.055 17,969 498.131 11,500 940,488 627,904 15279674 Accumulated Depreciation At beginning of ye8r- as restated Charge for year At end of year 4,038.608 416.552 545,716 5,000,876 338,268 4,376.876 12,633 429.185 92.899 638.615 443,800 5,444.676 Net Book Value At beginning of year At end of year 9.204 012 9,464,179 383,272 301,873 9 650 894 9,834,998 68.946 THE COMPANY Cost At beginning of year restated Additions At end of year as 13.132.620 480.162 928,988 14,541,770 598.435 13,731.055 17.969 498,131 11,500 940,488 15,169,674 Accumulated Depreciation At beginning of year restated Charge for year At end of year 4,038,608 416,552 545,716 5,000.876 338,268 4,376,876 92.899 638,615 443.800 5,444,676 429.185 Net Book Value At beginning of year At end of year 9,094,012 9.354.179 63,610 68,946 383.272 301,873 9,540,894 9.724,998 The freehold property shown in the accounts of the company relates to improvements made to the freehold propety owned by the subsidTary company and is therefore added to treehold property in the accounts of the group. The market value of freehold properties is estimated by the Govemors to be in excess of the book value at the year end. 24
The Hawthorns Educational Trust Limited NOTES TO THE ACCOUNTS Yeai ended 31 August 2024 11 Investment in Subsldiary 2024 2023 Shares at cost 71.534 71,534 The Company owns 100 % of the shares of the subsidiary company The Hawthoms (Pendell Court) Lirnited, company nutnber 700823, which owns the freehold of the premises occupied by the Trust. Both companies are incorporated in the United lfjngdom and registered in England and Wales. The trading results of The Hawthorns (Pendell Court) Limited for the year ended 5 April 2024 are: Profit for the year Capital and ReseNes £Nil £64,507 12 Debtors The Grou 2024 The Com 2024 an 2023 2023 Fees receivable other debtors Prepayments Loan to subsidiary company 1.623.511 14,325 140,625 1.737.613 16,157 142.470 1,623,487 14,325 140.625 1,737,589 16,157 142,470 45.276 TOTAL 1778,461 1,896.240 1,778.437 1.941,492 13 Creditors due within one year The Grou 2024 The Com 2024 an 2023 2023 Fees charged in advan Bank loans and overdrafts Other creditors and school fees received in advance Accruals 2,625,173 67,520 717,408 2,338,080 180,659 975.186 2,625,173 67,520 717.168 2,338.080 180.659 974,946 (Note 15) 242.896 23,796 242,896 23,796 TOTAL 3,652.997 3,517,721 3,652,757 3,517,481 25
The Hawthorns Educational Trust Limited NOTES TO THE ACCOUNTS Year ended 31 August 2024 14 Credltors due after more than one year The Grou 2024 The Com 2024 an 2023 2023 Long tem loans Advanced Fees Payments Scheme due more than one year 2.593,077 308.498 2,105,954 116.492 2.593,077 308,498 2,105,954 116,492 TOTAL 2 901,575 2 222,446 2 901575 2 222,446 Loan maturity analysis Repayable in less than 1 year (Note 13) 67.520 180,659 67,520 180,659 Repayable in 1-2 years Repayable in 2-5 years Repayable in over 5 years 250,311 302,705 2,348,559 225,914 475.348 1 ,404,692 250,311 302.705 2,348.559 225.914 475,348 1.404,692 TOTAL 2.969.095 2.286,613 2,969.095 2.286.613 During the year, the Trust refinanced their existing loans into one loan. Interest on the loan is charged at 2.55 /J above Base rate. The loan is repayable in February 2043. Total loan repayments during the year were £69,270 (2023: £119,439). The Trust also has a Bank overdraft facility. The loans and the overdraft are secured by a fixed and floating charge on the Group's freehold property. The overdraft was not being used at the year end. 15 Advanced 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 tem's noti. Assuming pupils will remain in the School, advan fees will be applied as below: 2024 2023 Due within one year Advanced Fees Payments Scheme due more than one year 291,894 308.498 57,740 116,492 TOTAL 600.392 174,232 The balance represents the accrued liability under the contracts. The movements during the year vrfere: 2024 2023 Balance at beginning of the year Amounts received during the year Amounts credited to pupil accounts for fees 174,232 597.968 (171,808) 281,658 16,508 (123.934) Balance at end of year 600,392 174.232 26
The Hawthorns Educational Trust Limited NOTES TO THE ACCOUNTS Year ended 31 August 2024 16 Restricted Fund The Hawlhorns Foundation provides a long temi fund to assist the School with bursary awards and to provide funds for specific capital projects. Donations are received predominantly from current and former parents and from Old Hawthomians. Balance at Income Expenditure Transfers Balance at 31 August 2024 September 2023 The Hawthoms Foundation 220,479 (195,479) 25.000 Designation of Fund Capital Projects Fund Endowment Fund TOTAL 183,149 (158,149) 25,000 37,330 220,479 37,330 195.479 The School contributed £Nil {2023: £Nil) towards the running costs of The Hawthorns Foundation. 17 Unrestricted Fund Balance at 1 September 2023 Income Expenditure Transfers Balance at 31 August 2024 Unrestricted Designated The Group 6,401,943 438,814 6,840,757 8,441.379 (8,426,016) 634,293 438,814 195,479 7.051,599 8.441,379 8,426,016 7.051,599 Unrestricted Designated The Company 6.408,969 438,814 6,847,783 8,441,379 (8,471,292) 634,293 438,814 195.47g 7,013,349 8,441 379 8.471,292 7 013.349 Designated funds represents funds allocated by the govemors for roof repairs. Transfers represents the amounts spent during the year. 27
The Hawthorns Educational Trust Limited NOTES TO THE ACCOUNTS Year ended 31 August 2024 18 Net Assets Belween Funds of the Group UnTestricted Restricted Gioup At 31 August 2024 Fixed Assets Current Assets Current Liabilities Long-term Liabilrties 9,834.998 3,771.173 (3,652,997) 2.901,575 7,051,599 9,834,998 3,796.173 (3,652,997) 2 901 575 7,076,599 25.000 Designated Unrestricted Restricted Group At 31 August 2023 Fixed Assets Current Assets CUrnt Liabilities Long-term Liabilities 9.650,894 2,491.216 (3,517,721) 2,222,446 6.401,943 9,650.894 3,150,509 (3.517,721) 2 222,446 7 061236 438.814 220,479 438,814 220.479 19 Operating Leases Total lease commitments for assets held under operating leases are £266,646 (2023: £36,348). 2024 2023 Within one year Between two and five years 72.873 193.773 266.646 32,754 3,594 20 Governors, Remuneration, Reim bursement of expenses and Interests in Contracts No remuneration was provided to any Governors during the year. No governors were reimbursed travel expenditure during the year (2023: £Nil). Mr B J C Dyer, the Chair of Governor. was a director of Bradley Dyer Raw Limited that the company provides advertising production service worth of £11,772 (2023: £7,292) to The Hawthorns School. These services are provKled at preferents'al rates. 21 Penslon Costs The School parlicipates in the Teachers, Pension Scheme ("the TPS"} for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £479,046 (2023: £454,451) and at the year-end £Nil (2023 - £Nil) was accrued in respect of contributions to this scheme. The TPS is an unfunded multi-employer defined benefits pension scherne governed by The Teachers. Pensions Regulations 2010 (as amended) and The Teachers, Pension Scheme Regulations 2014 (as amended). Members contribute on a "pay as you go" basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefrts are paid by public funds provided by Parliament. 28
The Hawthorns Educational Trust Limited NOTES TO THE ACCOUNTS Year ended 31 August 2024 21 Pension Costs Icontlnued) The employer contribution rate is set by the Secretary of State followtng scheme valuations undertaken by the Government Actuary's Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2020 and the Valuation Report was published in October 2023. Following the Mccloud judgement, the remedy proposed that when beneftts become payable, eligible members can select to receive them from erther the reformed or legacy schemes for the period 1 April 2015 to 31 March 2022. The actuaries have assumed that members are likely to choose the option that provides them with the greater benefits, and in preparing the 2020 valuation has valued the 'greater value, benefits for groups of relevant members. The employer contribution rate for the TPS is 28.6 %, and employers are also required to pay a scheme administration levy of 0.080/0 gwing a total employers contribution rate of 28.880/0. With effect from 1 September 2024. participants in the TPS are required to take a 3.5 % salary cut to remain in the scheme so that the rise in employer contributions is cost neutral to the School, or move to the defined contribution scheme as described below. The School also operates a defined contribLrtion pension scheme for non-TPS staff. The pension charge forthe year includes contributions payable to this scheme of £249.632 (2023.. £126,573) and at the year- end £Nil (2023: £Nil) was accrued in respect of contributions to this scheme. Teachers that joined the school from September 2022 are part of this scheme, as the school introduced a phased wtthdrawal from the Teachers, Pension Scheme. 22 Control The cornpany is limited by guarantee with no one member having overall control. 23 Capital commitments Amounts contracted for but not provided in the financial statements are £51,253 plus VAT (2023: £154,596 plus VAT) in relation to the New Nursery Building. 24 Post Balance Sheet Events Post year end, The Hawthoms Educational Trust Limited announced that it would be joining the Caterham School group of schools. From the completion date, Caterham School will becorne the sole trustee of The Hawthorns Educational Trust Limited. 29