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2022-07-31-accounts

HAZELWOOD SCHOOL

(A Charitable Educational Trust Limited by Guarantee)

Company No. 925581 Registered Charity No. 312081

GOVERNORS' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED

31ST JULY 2022

Hazelwood School

(A Charitable Educational Trust Limited by Guarantee) Reference and Administrative Details

Governors

J. Bleakley (resigned 21st May 2022) E. Bruwer N. Carter-Pegg J. Coates A. Curson B. Figgis S. Heald

R. Heaton (Chair) H. Leach T. Proctor G. Reedy N. Taylor

B. Thakar

Head

Mrs L. Louw

Director of Finance

Mrs A. Field

Registered Office

Hazelwood School Wolfs Hill Limpsfield Oxted RH8 0QU

Bankers

Barclays Bank plc 9 Station Road West Oxted Surrey RH8 9EF

Solicitors

Veale Wasbrough Lawyers Orchard Court Orchard Lane BRISTOL BS1 5WS

Auditors

Moore Kingston Smith LLP Devonshire House 60 Goswell Road London EC1M 7AD

Page: 1

Hazelwood School (A Charitable Educational Trust Limited by Guarantee) Governors' Report for the year ended 31st July 2022

Introduction

The Governors have pleasure in presenting their report of the affairs of Hazelwood School (the School) for the year ended 31st July 2022 together with the audited financial statements for that period. These have been prepared in accordance with the Statement of Recommended Practice on Accounting and Reporting by Charities (The FRS 102 SORP), current statutory requirements and the Charity's Memorandum and Articles of Association.

Charitable Objects

The objects for which the Trust is established are the advancement and promotion of education in particular by the provision of a school for the education of children of both sexes.

Governance and Management

Hazelwood School is a registered charity (No 312081) and a company limited by guarantee (No 925581). It is governed by its Memorandum and Articles of Association. The Board of Governors (the Board) is guided by its Governance Document, last updated in June 2017.

The members of the Board, who were Trustees of the Charity's activities and Directors of the Company for the purposes of the Companies Act 2006 during the year ended 31st July 2022, are shown on page 1.

On appointment, Governors are provided with a comprehensive information pack and guidelines on Governorship. They are encouraged to attend familiarisation visits to the School and all Governors are given opportunities to attend seminars run by professional bodies to enhance awareness of both governance skills and school management issues.

The full Board meets four times a year with two meetings scheduled in the Autumn term; the first is a ‘catch up Board Meeting’ following the summer with the second taking the shape of a full day’s immersion at the School. All the Governor Committees (Finance & General Purposes, Nomination & Remuneration, Compliance, Education and Property) continue to meet at least once a term. The Audit Committee meets once a year to provide oversight of the School's financial management, of the annual financial statements and of the School's external auditors. The School has a wholly owned trading subsidiary, The Larks at Laverock Limited, which runs a day nursery for children aged 6 months to 4 years. Its Board meets at least once a term. The Head, assisted by the Senior Leadership Team, is responsible for the day to day management of the School and reports directly to the Governing Body.

Strategic Report

Principal Risks and Uncertainties

The focus of the latest review of Principle Risks document was to identify more current risks associated with current economic conditions, most notably inflationary pressures and interest rate increases.

In addition, the Governors continue to review not only the application of statutory compliance and best practice, but also the other major risks to which the School is exposed and they ensure that controls are put in place to mitigate those risks. The School’s Risk Management Register details risk exposure including its Objects, Charity Law and Regulation, Governance and Management, External Influences, Environmental Health & Safety, Operational Processes, Technological, Academic, Pastoral, Financial, Investment and Privacy. Risks have been allocated to the individual Governor Committees for review at their termly meetings. Principal risks include loss of reputation leading to a drop in pupil numbers. This is mitigated first and foremost by a broad and balanced curriculum which delivers progress and results. The school also has strong safeguarding procedures, works to maintain a positive profile in the community and operates an excellent staff performance and development programme to maintain high calibre staff. In addition, it invests in stringent financial modelling to capture emerging trends early in order to rebalance the impact of changing pupil numbers. Also identified as a principal risk is the risk of financial mismanagement which is mitigated by strong internal controls, detailed financial budgeting and modelling of long term cash flow forecasts and regular reviews by Governors. The Governors are confident that risks are minimised and maintained within acceptable tolerances.

The Governors have no financial interest in the Charity and receive no remuneration from the Charity except to the extent disclosed in note 21.

Page: 2

Hazelwood School (A Charitable Educational Trust Limited by Guarantee) Governors' Report for the year ended 31st July 2022 (continued)

Activities, Achievements and Performance

The company fulfils its charitable objects by running Hazelwood School, an independent Pre-prep and Preparatory School for boys and girls aged 4 to 13 years. In shaping our objectives for the year 2020-21 and planning the school’s activities, the Governors are aware of the Charity Commission’s guidance on public benefit including the document, ‘Public Benefit: running a charity (P2)’. In order to deliver the charitable objects, the school offers a limited number of grant-assisted places which are made available to local families whose financial positions would not otherwise allow them to consider Hazelwood School for their child/children. Moreover, the School employs individuals and owns buildings whose expertise, accommodation and facilities are, under normal circumstances, made available to local and community organisations thereby delivering public benefit.

Over the summer of 2022, the School has built a new all weather floodlit pitch and sports pavilion which will enhance the provision of many sports in our aim to achieve sporting excellence, as well as to provide the local community with a new facility.

At the beginning of the year, we launched the Sustainable Development Goals project as a schoolwide initiative involving all year groups from Reception through to Year 8. The focus of this was on developing new solutions to the challenges faced by our global community. Developed by the United Nations, the seventeen sustainable development goals are described as a blueprint to achieve a better and more sustainable future for all. From Oak to Year 8, we challenged our pupils to choose a goal, conduct research to broaden their understanding of its effects and develop a potential solution to help meet that goal. Our commitment as a school was that for the project that showed the most potential, the whole school body would support its development – anything from practical help, financial investment, knowledge, experience or something different. The whole initiative captivated the school and cumulated in 2 hours of presentations from all our class teams, presented to the entire school and an external panel of parent judges. It was a truly memorable highlight for Hazelwood in 2022.

Thankfully, 2022 saw a return to normality for most of our school events and performances after the hiatus caused by Covid. Everything from school plays in the auditorium, to the much loved Hazelwood Talent Show were enjoyed by pupils and parents and it was a joy to see these hugely popular events back.

Another long awaited and much anticipated highlight of the year, has been the launch of a new parental communication portal. For parents it provides them with a single source for all important school information in one place. This enhancement showcases our school as a modern forward thinking and dynamic community that holds parents and pupils at the heart of what we do.

Public Benefit

The school continues to follow its Bursary Policy, making a limited number of assisted places available to those families whose financial circumstances would not allow them to consider an education at Hazelwood School.

Lettings and the Community

Lettings have shown a good recovery post pandemic with over 30 local organisations benefitting from the use of our facilities on a regular basis during the year. It is anticipated that external demand for the use of the new all weather pitch will have a positive effect on the letting programme going forward.

The School continues to run the Hazelwood Community Fund which raises funds for local community projects. This year over £3,000 was given to provide defibrillators at the local railway station and Godstone Bowling Cub.

Page: 3

Hazelwood School (A Charitable Educational Trust Limited by Guarantee) Governors' Report for the year ended 31st July 2022 (continued)

Activities, Achievements and Performance (continued)

Key Performance Indicators

The following KPIs are reviewed by the Board: 2021 2020
• Teaching Costs per pupil £6,797 £6,715
• Premises and Running Costs per pupil £6,621 £5,290
• Teacher/Pupil ratio
(Excluding Teaching Assistants)		 1 to 10 1 to 10
• Fee Increase 2.00% 3.00%
• Pupil Numbers (Reception to Year 8) 444 441
• Capital Expenditure per pupil £1,659 £946
• Operating Surplus as % of Gross
Fee Income 14.77% 16.03%

Results, Financial Position and Reserve Policy

The consolidated surplus (net income) for the year amounted to £902,670 (2021: £910,934). The Charity's "free reserves" as defined by the Charity Commission (that part of a charity’s unrestricted funds that are freely available to spend on any of the Charity’s purposes but excludes fixed assets such as land and buildings) net of associated borrowings amount to £1,810,659 (2020: £1,664,025). The Governors' policy is to apply any surplus towards enhancing the quality of education, the School's facilities, and in maintaining the operational capability of the School in the event of fluctuations in its net income. The surplus in the current year demonstrates a positive move towards building reserves which has enabled further investment in the School and its facilities. A reserves policy has been agreed which defines a level of reserves of £200,000 to be held against unforeseen events.

The School's wholly owned trading subsidiary, The Larks at Laverock Limited, generated turnover of £1,264,316 (2020: £1,139,622) and made a profit before gift donation of £141,558 (2021: £77,004). The profit was gifted to Hazelwood School. These figures are included in the consolidated accounts.

Fixed Assets and Capital Investment

The fixed asset focus this year has been the all weather pitch and pavilion however there has also been significant investment in a new Design Technology facility and a new Food Technology area.

Statement of Governors' Responsibilities

The Governors (who are also directors of Hazelwood School for the purposes of company law) are responsible for preparing the Governors’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires Governors to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charitable company and the Group and of the income and expenditure of the Group for that period. In preparing these financial statements, the Governors are required to:

Page: 5

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Independent Auditors' Report to the Members of Hazelwood School

Opinion

We have audited the financial statements of Hazelwood School (the ’parent charitable company’) and its subsidiary (the ‘group’) for the year ended 31 July 2022 which comprise the Group Statement of Financial Activities, the Group Summary Income and Expenditure Account, the Group and Parent Charitable Company Balance Sheets, the Group Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs(UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of financial statements section of our report. We are independent of the Parent Charitable Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s and parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Page: 7

Independent Auditors' Report to the Members of Hazelwood School

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and Parent Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the trustees’ annual report.

We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Act 2011 require us to report to you if, in our opinion:

Responsibilities of Governors

As explained more fully in the Governors’ responsibilities statement set out on page 6, the Governors (who are also the directors of the Parent 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 statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Governors are responsible for assessing the Group and Parent Charitable Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Governors either intend to liquidate the Group or Parent Charitable Company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Page: 8

Independent Auditors' Report to the Members of Hazelwood School

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters which we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charitable company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

James Saunders (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

Date: 7 February 2023 9 Appold Street London EC2A 2AP

Page: 9

Hazelwood School

(A Charitable Educational Trust Limited by Guarantee) Consolidated Statement of Financial Activities

(incorporating an income and expenditure account) For the year ended 31st July 2022

Note
Income from:
Donations
2
Charitable activities
3
Turnover of subsidiary undertaking
4
Other income
5
Total Income
Expenditure on:
Raising funds
6
Costs of trading subsidiary
11
Charitable activities
7
Total Expenditure
Net Income/(Expenditure)
Net movement in funds
Fund balances at 1st August
Fund balances at 31st July
17		 2022
Unrestricted
Funds
£
200
6,759,671
1,375,130
164,805
8,299,806
45,669
1,058,572
6,283,351
7,387,592
912,214
912,214
8,276,165
9,188,379		 2022
Restricted
Funds
£
13,123
-
-
-
13,123
-
-
22,667
22,667
(9,544)
(9,544)
114,602
105,058		 2022
Total
Funds
£
13,323
6,759,671
1,375,130
164,805
8,312,929
45,669
1,058,572
6,306,018
7,410,259
902,670
902,670
8,390,767
9,293,437		 2021
Total
Funds
£
20,116
6,075,720
1,264,316
193,722
7,553,874
45,378
987,312
5,610,250
6,642,940
910,934
910,934
7,479,826
8,390,760

All amounts relate to continuing activities in respect of both years.

There were no other recognised gains or losses during the two financial years.

As permitted by section 408 of the Companies Act 2006 the income and expenditure account of the parent Company is not presented as part of these accounts.

Page: 10

Hazelwood School (A Charltable Educatlonal Trust Limlled by Guarantee) Balance Sheets at 31st July 2022 2022 2021 Group Ch•rfty FJx•d As••ts Tryf¢lo 0$8• 10 98,323 9A96J23 SA53.82t tnv•Atsn•nt In Suwdlary Undortakkng 11 1fy) 100 9.89S.323 9.894423 9.553.921 12 13 12.816 197m6 3317.274 Odbl C•sh al b•nk Ind hi ho 7.469 170.203 9,070 173,828 3.041.568 5892 202J30 2￿78 $88 3.587.586 3.436.407 3.224.466 3.1)81110 Cr•dnurn: Amourts hlung du• wtthlN •Jn• y•ar 14 11W3,375) {1.492.29S) (1351140) Ilet CurTrntA•••ts 1.944 11 1,944.111 1.824,070 1.823.970 Totsl ABs•ts 1•88 Cwr•nt LlablllU•• 11.840.534 11￿0.534 11.377m1 113n.891 Cr•dltorn Amounts Wll•• th• mor• Ih•n one 15 (ZS47.11OTJ 12.647,097) 12.987.131) (2.987.131) H•tA*$•ts 9.293.437 9293.437 8.390.760 8J90.710 Attumul4t•d Funds Unrn¥tsKt•d Funds. Grn•l Fund 17 9.188.379 105.058 101.379 105.058 8.276.158 114.602 Q276.158 114.802 9.293.437 9,293 437 8,3KI,Th) 8￿￿.760 Th• W￿￿u$ oftr• Charityfor a122 was £902.670 Ilncludlng Gltt Ow¥on fr•m Th• Laths and slAMd on tstr beh•lfby: Gowmor ICtrAlr) N. Cart•r-PegB..-. C(Th￿yN￿fftsr W25581 Pago: 11

Hazelwood School

(A Charitable Educational Trust Limited by Guarantee) Consolidated Statement of Cash Flows For the year ended 31st July 2022

2022 2021
£ £ £ £
Net Cash Inflow from
Operating Activities (note 1) 1,495,368 1,083,438
Cash flows from investing activities
Purchase of tangible fixed assets (736,584) (414,165)
Disposal of tangible fixed assets - -
Net cash provided by/(used in) investing activities (736,584) (414,165)
Cash flows from financing activities
Cash inflows from new borrowing - -
Repayments of borrowing (423,078) (423,078)
Net cash provided by/(used in) financing activities (423,078) (423,078)
Change in cash and cash equivalents in the reporting period 335,706 246,195
Cash and cash equivalents at the beginning of the reporting period 3,041,568 2,795,373
Cash and cash equivalents at the end of the reporting period 3,377,274 3,041,568

Notes to the Consolidated Statement of Cash Flows For the year ended 31st July 2022

1
Reconciliation of Net Income
to Net Cash Inflow from Operating Activities
Net income for the year
Depreciation
(Increase)/Decrease in stock
Decrease/(Increase) in debtors, and prepayments
(Decrease)/Increase in creditors, provisions
(Decrease)/Increase in fees in advance
Net Cash Inflow from Operating Activities
2
Analysis of Cash and Cash Equivalents
Cash at bank and in hand		 2022
£
902,670
394,089
(3,546)
(23,868)
335,341
(109,318)
1,495,368		 At 31 July
2022
£
3,377,274
3,377,274		 2021
£
910,934
361,397
1,712
(67,158)
4,237
(127,684)
1,083,438
At 1 August
2021
£
3,041,568
3,041,568

Page: 12

Hazelwood School

(A Charitable Educational Trust Limited by Guarantee)

Notes to the Financial Statements

For the year ended 31st July 2022 (Continued)

a) Accounting convention

Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The Parent Charitable Company and its subsidiaries are a public benefit group for the purposes of FRS 102 and therefore the charity also prepared its financial statements in accordance with the 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 (The FRS 102 Charities SORP), the Companies Act 2006 and the Charities Act 2011.

The financial statements are prepared in sterling, which is the functional currency of the group. Monetary amounts in these financial statements are rounded to the nearest pound.

b) Going Concern Basis

The Governors have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the group to continue as a going concern. The Governors have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the Governors have considered the group’s forecasts and projections and have taken account of pressures on income. Particular consideration has been given to coronavirus and its impact and detailed financial modelling has been conducted for various scenarios for a period of at least twelve months from the date of approval of the financial statements. As a result, the Governors have concluded that there is a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The group therefore continues to adopt the going concern basis in preparing its financial statements.

At the balance sheet date the group had net current assets of £1,944,211 (2021: £1,824,070).

c) Fixed Assets and Depreciation

The school's freehold properties are capitalised in the financial statements at their historic cost or, in the case of the Laverock site, its existing use valuation as at the date of its transfer to Hazelwood School.

All fixed assets with a cost above £1,000 are capitalised and depreciated at rates calculated to write off the cost, less estimated residual value, evenly over their expected useful lives, as follows:

Fixtures, fittings and equipment: Computer and other equipment 33.3% per annum Other fixtures and fittings 10% per annum Other assets: Motor vehicles 20% per annum Buildings 2% per annum Swimming pool 10% per annum

No depreciation is provided on freehold land.

d) Stock

Stock is valued at the lower of cost and net realisable value.

Page: 13

Hazelwood School

(A Charitable Educational Trust Limited by Guarantee) Notes to the Financial Statements For the year ended 31st July 2022 (Continued)

1 Accounting policies (continued)

e) Fees including disbursements charged

These represent the gross invoiced value of all educational and associated activities provided during the year. Bursaries and Scholarships provided by the School are shown separately under Bursaries and other fee remissions. The School, which provides educational services, is not registered for VAT. All fees are derived from within the UK.

f) Pension Scheme Contributions

These are charged to the Statement of Financial Activities as they arise.

g) Composition Fees

Discounting on composition fees is calculated termly at rates set annually by the Governors by reference to rates of return available to the School and is charged to the Statement of Financial Activities on an accruals basis.

h) Allocation of Expenditure

All expenditure incurred in the running of the School is treated as charitable expenditure. A proportion of administrative costs is recharged to the Larks at Laverock Limited to reflect management time incurred in relation to that company.

i) Leasing and hire purchase commitments

Assets held under finance leases and hire purchase contracts are capitalised in the Balance Sheet and are depreciated over their expected useful lives.

The interest element of the rental obligations is charged to the Statement of Financial Activities over the period of the lease on a straight line basis.

Rentals paid under operating leases are charged on a straight line basis over the lease term.

j) Consolidation

The Statement of Financial Activities (SOFA) and Balance Sheet consolidate the financial statements of the Parent Charitable Company and its subsidiary. The assets and liabilities of the subsidiary are consolidated on a line by line basis.

k) Critical accounting estimates and areas of judgement

In preparing financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements. The following judgements and estimates are considered by the Governors to have the most significant effect on amounts recognised in the financial statements:

The annual depreciation charge for property, plant and equipment is sensitive to changes in useful economic life and residual values of assets. These are reassessed annually and an impairment review is performed where necessary.

The repayment periods for fees in advance is estimated on the expected attendance at the school of the students.

l) Financial instruments

Cash and cash equivalents

Cash and cash equivalents include cash at bank and in hand and short term deposits with a maturity date of three months or less.

Basic financial instruments

The Charity only holds basic financial instruments as defined by FRS 102. Financial instruments receivable or payable within one year of the reporting date are carried at their at transaction price and subsequently at amortised cost.

Page: 14

Hazelwood School

(A Charitable Educational Trust Limited by Guarantee) Notes to the Financial Statements For the year ended 31st July 2022 (Continued)

2 Income from Donations

2
Income from Donations
Year to 31 July 2022
Donations
Year to 31 July 2021
Donations
3
Income from Charitable activities
Year to 31 July 2022
Gross Fees including disbursements charged
Bursaries and other fee remissions
Other pupil related income
Year to 31 July 2021
Gross Fees including disbursements charged
Bursaries and other fee remissions
Other pupil related income
4
Turnover from subsidiary undertakings
Year to 31 July 2022
Turnover of subsidiary
Year to 31 July 2021
Turnover of subsidiary		 Unrestricted Restricted
Total
Funds
Funds
2022
£
£
£
200
13,123
13,323
200
13,123
13,323
Unrestricted Restricted
Total
Funds
Funds
2021
£
£
£
9,389
10,727
20,116
9,389
10,727
20,116
Unrestricted Restricted
Total
Funds
Funds
2022
£
£
£
7,008,579
-
7,008,579
(253,458)
-
(253,458)
4,550
-
4,550
6,759,671
-
6,759,671
Unrestricted Restricted
Total
Funds
Funds
2021
£
£
£
6,350,001
-
6,350,001
(277,580)
-
(277,580)
3,300
-
3,300
6,075,721
-
6,075,721
Unrestricted Restricted
Total
Funds
Funds
2022
£
£
£
1,375,130
-
1,375,130
1,375,130
-
1,375,130
Unrestricted Restricted
Total
Funds
Funds
2021
£
£
£
1,264,316
-
1,264,316
1,264,316
-
1,264,316

Page: 15

Hazelwood School (A Charitable Educational Trust Limited by Guarantee) Notes to the Financial Statements For the year ended 31st July 2022 (Continued)

5 Other income

Year to 31 July 2022
Rental and hire fees
CJRS Funding
Interest Receivable
Year to 31 July 2021
Rental and hire fees
CJRS Funding
Interest Receivable
6
Expenditure on raising funds
Year to 31 July 2022
Advertising and publicity costs
Year to 31 July 2021
Advertising and publicity costs
7
Expenditure on charitable activities
Year to 31 July 2022
Staff costs
- teaching
- administrative
Education and recreation
Domestic
Establishment costs
Depreciation
Composition fee discounts
Office costs
Maintenance of buildings, swimming pool and equipment
Administrative costs
Bad debt expense
Bank interest & charges
Loss on Disposal of fixed asset
Governance costs (see below)		 Unrestricted Restricted
Total
Funds
Funds
2022
£
£
£
160,348
-
160,348
1,735
-
1,735
2,722
2,722
164,805
-
164,805
Unrestricted Restricted
Total
Funds
Funds
2021
£
£
£
69,999
-
69,999
123,433
-
123,433
290
-
290
193,722
-
193,722
Unrestricted Restricted
Total
Funds
Funds
2022
£
£
£
45,669
-
45,669
45,669
-
45,669
Unrestricted Restricted
Total
Funds
Funds
2021
£
£
£
45,378
-
45,378
45,378
-
45,378
Unrestricted Restricted
Total
Funds
Funds
2022
£
£
£
3,017,757
-
3,017,757
1,315,563
-
1,315,563
357,579
-
357,579
262,368
-
262,368
292,180
-
292,180
374,812
19,277
394,089
4,665
-
4,665
144,019
-
144,019
230,664
-
230,664
158,798
3,390
162,188
24,356
-
24,356
82,812
-
82,812
-
-
-
17,778
-
17,778
6,283,351
22,667
6,306,018

Page: 16

Hazelwood School (A Charitable Educational Trust Limited by Guarantee) Notes to the Financial Statements For the year ended 31st July 2022 (Continued)

7 Expenditure on charitable activities (continued)

Year to 31 July 2021
Staff costs
- teaching
- administrative
Education and recreation
Domestic
Establishment costs
Depreciation
Composition fee discounts
Office costs
Maintenance of buildings, swimming pool and equipment
Administrative costs - Restated
Bad debt expense
Bank interest & charges
Loss on Disposal of fixed asset
Governance costs (see below) - Restated
Governance costs
Year to 31 July 2022
Auditors' remuneration:
Audit fee including VAT
Under/(over) provision from prior year
Other services
Other professional fees		 Unrestricted Restricted
Total
Funds
Funds
2021
£
£
£
2,961,331
-
2,961,331
1,112,253
-
1,112,253
177,372
-
177,372
178,254
-
178,254
254,638
-
254,638
328,746
32,651
361,397
12,796
-
12,796
141,322
-
141,322
208,677
-
208,677
119,318
-
119,318
-18,763
-
-18,763
84,703
-
84,703
-
-
-
16,952
-
16,952
5,577,599
32,651
5,610,250
Unrestricted Restricted
Total
Funds
Funds
2022
£
£
£
12,828
-
12,828
1,842
-
1,842
1,434
-
1,434
1,674
-
1,674
17,778
-
17,778
Year to 31 July 2021
Restated
Auditors' remuneration:
Audit fee including VAT
Under/(over) provision from prior year
Other services
Other professional fees		 Unrestricted Restricted
Total
Funds
Funds
2021
£
£
£
11,460
-
11,460
460
-
460
2,958
-
2,958
2,074
-
2,074
16,952
-
16,952

Page: 17

Hazelwood School

(A Charitable Educational Trust Limited by Guarantee) Notes to the Financial Statements For the year ended 31st July 2022 (Continued)

8
Net income
This is stated after charging:
Auditors' remuneration (excluding VAT)
Depreciation
9
Staff costs (Group)
Wages and salaries
Social security costs
Other pension costs		 2022
2021
£
£
12,225
9,933
394,089
361,397
2022
2021
£
£
4,206,581
3,932,086
384,423
367,040
553,636
532,422
5,144,640
4,831,548

No remuneration was paid to the Governors in either period and no expenses were reimbursed.

Charity
The average monthly number of employees during the year was:
Teaching and learning support
Administration
Group
The average monthly number of employees during the year was:
Teaching and learning support
Administration		 2022
2021
Actual
Actual
69
71
56
56
125
127
2022
2021
Actual
Actual
95
100
62
62
157
162

The number of employees whose emoluments amounted to over £60,000 in the year were as follows:

Number of Employees
Remuneration Range 2022 2021
£60,001 - £70,000 1 2
£80,001 - £90,000 2 1
£90,001 - £115,000 1 1

Pension contributions made for higher paid employees were £52,346 (2021: £51,305). There were no termination payments (2021 £0).

Key management personnel

Key management personnel include the Head Teacher, Bursar, Deputy Head and Director of Finance. The total employee benefits (including salaries, bonuses, employers pension costs and other benefits) of the School's key management personnel were £434,050 (2021: £436,529). The Bursar left in December so the employee benefits total reflects their benefits to date of leaving.

Page: 18

Hazelwood School (A Charitable Educational Trust Limited by Guarantee) Notes to the Financial Statements For the year ended 31st July 2022 (Continued)

10
Fixed Assets
Group and company
Cost
At 1st August 2021
Transfers
Additions at cost
Disposals at cost
Adjustment
At 31st July 2022
Depreciation
At 1st August 2021
Charge for the year
Depreciation on Disposal
At 31st July 2022
Net Book Amount
At 31st July 2022
At 31st July 2021		 Freehold
Land and
Buildings
£
12,150,358
67,616
12,217,974
84,896
-
-
12,302,870
3,309,854
265,484
-
3,575,338
8,727,532
8,840,504		 Swimming
Pool
£
253,028
-
-
-
-
-
200,750
13,393
-
214,143
214,143
-
52,278		 Equipment,
Furniture
and Fittings
£
2,314,525
53,081
2,367,606
123,518
-
-
2,491,124
1,821,739
115,210
-
1,936,949
554,175
492,786		 Motor
Vehicles
£
8,450
-
-
-
-
-
8,450
-
-
8,450
-
-		 Assets
Under
Construction
£
168,253
120,697
-
47,556
528,175
-
-
575,731
-
-
-
-
575,731
168,253		 Total
£
14,894,614
14,894,614
736,589
-
-
15,631,203
5,340,793
394,087
-
5,734,880
9,896,323
9,553,821

At 31 July 2022 the company had contractual capital commitments in respect of building works totalling £1,141,926 (2021: £248,305).

11 Investment in Subsidiary undertaking

Hazelwood School owns the entire issued share capital of The Larks at Laverock Limited of £100. The company's turnover for the year ended 31 July 2022 was £1,375,130 (2021: £1,264,316) and its profit for the year was £0 (2021: £0) after a staff costs and overhead recharge from Hazelwood School Limited of £175,000 (2021: £200,000) and a gift donation to Hazelwood School Limited of £141,558 (2021: £77,004). A deed of covenant is in place approving the gift transfer of profit to Hazelwood School. Net assets at 31 July 2022 were £100 (2021: net assets £100).

12
Stock
Sundry consumables
13
Debtors
School fees receivable
Other debtors
Prepayments and accrued income
Owed by Group undertaking		 2022
2021
£
£
12,616
9,070
2022
2021
£
£
92,575
78,701
9,138
8,596
95,983
86,531
-
-
197,696
173,828
Group
Group		 2022
2021
£
£
7,469
5,992
2022
2021
£
£
80,327
62,709
9,138
8,484
80,738
80,245
-
51,092
170,203
202,530
Charity
Charity		 2022
2021
£
£
7,469
5,992
2022
2021
£
£
80,327
62,709
9,138
8,484
80,738
80,245
-
51,092
170,203
202,530
Charity
Charity
202,530

The value of the bad debts provison included under School fees receivable was 2022: £73,466 (2021: £108,363).

Page: 19

Hazelwood School

(A Charitable Educational Trust Limited by Guarantee) Notes to the Financial Statements For the year ended 31st July 2022 (Continued)

14 Creditors: Amounts falling due within one year
Bank loan
Fees in advance (note 16)
Trade creditors
Accruals and deferred income
Owed to Group undertaking
15 Creditors: Amounts falling due after more than
one year
Long term bank loan
Fees in advance (note 16)		 2022
2021
£
£
423,078
423,078
420,987
513,349
141,161
179,603
658,149
284,366
-
-
1,643,375
1,400,396
2022
2021
£
2,095,532
2,518,610
451,565
468,521
2,547,097
2,987,131
Group
Group		 2022
2021
£
£
423,078
423,078
350,187
438,549
117,791
166,613
576,001
229,900
25,239
-
1,492,296
1,258,140
2022
2021
£
£
2,095,532
2,518,610
451,565
468,521
2,547,097
2,987,131
Charity
Charity		 2022
2021
£
£
423,078
423,078
350,187
438,549
117,791
166,613
576,001
229,900
25,239
-
1,492,296
1,258,140
2022
2021
£
£
2,095,532
2,518,610
451,565
468,521
2,547,097
2,987,131
Charity
Charity
2,987,131

In June 2015, the school agreed a new funding package with Barclays Bank plc to finance the construction of the Baily building. This includes a term loan of £4.634m which had a two year grace period. Termly repayments of £141,000 commenced from September 2017 with a final repayment of £1.249m in August 2025. The loan is secured by a fixed charge over the School's freehold property and a cross-guarantee and debenture with The Larks at Laverock Limited. The interest rate calculation has changed following the cessation of LIBOR after 31st December 2021 and has moved from LIBOR to the Bank of England Bank Rate plus a credit adjustment spread which is designed to approximate to what the rate would have been if continued on the previous basis. Since the change, current year interest has varied between 2.4793% at the change and 3.2293%. at the end of the year.

16 Fees in Advance
Net amounts repayable:
in less than one year
in one to two years
in two to five years
After five years		 Composition
Disbursement
Fees
Deposits
£
£
310,049
40,138
139,385
18,707
141,241
77,863
43,297
31,072
633,972
167,780		 Total
2022
£
350,187
158,092
219,104
74,369
801,752		 Total
2021
£
438,549
234,937
214,384
19,200
907,070

The Composition Fees repayment periods are based on the annual utilisation spread over the life of the scheme. If a pupil left prematurely the balance would become repayable at that date. Disbursement deposits are repayable by deduction from the final term's fees. Discounts on composition fees are credited to the composition fee account on a termly basis in accordance with the Accounting Policy described in note 1, and are calculated on the amounts remaining in the fund following the withdrawal of each term's fees. The above table is for the charity alone. In addition, there are £70,800 (2021: £74,800) of disbursement deposits held in the Larks subsidiary which are shown as repayable in less than one year.

Page: 20

Hazelwood School (A Charitable Educational Trust Limited by Guarantee) Notes to the Financial Statements For the year ended 31st July 2022 (Continued)

17 Funds

Year to 31st July 2022
Unrestricted Funds - General Fund
Restricted Funds:
Innovation Space
Bursary Fund
Tanzania
Hazelwood Community Fund
Hazelwood Parents Association		 Brought
Forward
£
8,276,165
77,257
2,501
2,241
2,552
30,051
8,390,767		 Income
£
8,299,806
-
1,500
-
3,223
8,400
8,312,929		 Expenditure
/ Transfers
£
(7,387,592)
(10,936)
-
-
(3,390)
(8,341)
(7,410,259)		 Carried
Forward
£
9,188,379
66,321
4,001
2,241
2,385
30,110
9,293,437

Restricted funds represent the following: The Innovation Space, an anonymous donation, to provide a hi tech agile learning space. The capital equipment element of this will be depreciated over 3-10 years (depending on asset type). The Bursary Fund is where parents can voluntarily donate their deposit or (fee discount during the pandemic) when their child leaves the school for the benefit of other children. The Tanzania project is a long term initiative with donations ring-fenced to provide resources to fund the project moving forwards. Donations to the Hazelwood Community Fund (less expenses related to the Fund) are used to contribute towards good causes within the local community and the Hazelwood Parents Association relates to the purchase cost of a treehouse, teepee and information display screens funded by them. These were capitalised and are being depreciated over 10 years.

Year to 31st July 2021
Unrestricted Funds - General Fund
Restricted Funds:
Innovation Space
Bursary Fund
Tanzania
Hazelwood Community Fund
Hazelwood Parents Association		 Brought
Forward
£
7,343,300
101,955
-
2,241
1,552
30,277
7,479,826		 Income
£
7,543,147
-
2,000
-
1,000
7,727
7,553,874		 Expenditure
/ Transfers
£
(6,610,289)
(24,698)
-
-
-
(7,953)
(6,642,940)		 Carried
Forward
£
8,276,158
77,257
2,501
2,241
2,552
30,051
8,390,760

18 Operating Lease Commitments

At 31st July the Charity had total
commitments under operating leases
as follows:
Amounts due within one year
Amounts due in one to five years
Amounts due in more than five years		 2022
2021
Other Assets
Other Assets
£
£
61,095
60,734
97,146
116,765
-
-
Group		 2022
2021
Other Assets
Other Assets
£
£
61,095
60,734
116,765
116,765
-
-
Charity		 2022
2021
Other Assets
Other Assets
£
£
61,095
60,734
116,765
116,765
-
-
Charity
116,765
-

Page: 21

Hazelwood School

(A Charitable Educational Trust Limited by Guarantee) Notes to the Financial Statements For the year ended 31st July 2022 (Continued)

19 Pension Scheme Arrangements

The Teachers' Pensions

The School participates in the Teachers' Pension Scheme ("the TPS") for its teaching staff. The Group pension charge for the year includes contributions payable to the TPS of £455,753 (2021: £442,249 ) and at the year-end £nil (2021: £nil) was accrued in respect of contributions to this scheme.

The TPS is an unfunded multi-employer defined benefits pension scheme 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 benefits are paid by public funds provided by Parliament.

The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2016 and the Valuation Report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%.

The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied at 5 March 2019. However, the assumptions were considered and set by the Department for Education prior to the ruling in the ‘McCloud/Sargeant case’. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teachers’ Pensions.

On 27 June 2019 the Supreme Court denied the government permission to appeal the Court of Appeal’s judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The government is respecting the Court’s decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied. The government announced on 4 February 2021 that it intends to proceed with a deferred choice underpin under which members will be able to choose either legacy or reformed scheme benefits in respect of their service during the period between 1 April 2015 and 31 March 2022 at the point they become payable.

The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal’s ruling in the McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020, and a consultation was launched on 24 June on proposed changes to the cost control mechanism following a review by the Government Actuary. Following a public consultation, the Government have accepted three key proposals recommended by the Government Actuary, and are aiming to implement these changes in time for the 2020 valuations.

The 2016 cost control valuations have since been completed in January 2022, and the results indicated that there would be no changes to benefits or member contributions required. The results of the cost cap valuation are not used to set the employer contribution rate, and HM Treasury has confirmed that any changes to the employer contribution rate resulting from the 2020 valuations will take effect in April 2024.

Until the cost cap mechanism review is completed it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly no provision for any additional past benefit pension costs is included in these financial statements.

The Pensions Trust

In line with the Government pension auto-enrolment requirement to provide a workplace pension scheme, the school has a pension scheme for non teaching staff which commenced in May 2014. The Scheme is a defined contributions scheme managed by The Pensions Trust ISPS and is run as a contractual scheme, meaning that all permanent non teaching staff are automatically put into the scheme, regardless of earnings, as long as they are over 18 and under state retirement age. They have the option to opt out.

Page: 22

Hazelwood School

(A Charitable Educational Trust Limited by Guarantee) Notes to the Financial Statements For the year ended 31st July 2022 (Continued)

Pension Scheme Arrangements (continued)

The Pensions Trust (continued)

The Government minimum contribution for Employees and Employers increased to a total of 8% from March 2019 (guidance was Employees 5% and Employers 3%) .The school has taken the decision to increase the minimum Employer's contribution to 4%, thereby reducing the burden on the Employee to 4%, due to the policy of matching Employees contributions. This satisfies the Government requirement for 8% in total. Employer contributions can rise to a maximum of 5% if the Employee contributes the same. Employer's contribution rates will continue to increase in the future to at least meet the government minimum levels for auto-enrolment schemes.

In addition, the School continues to contribute to defined contribution personal pension arrangements of certain other existing non-teaching staff who preferred to remain with their own scheme rather than joining the new workplace pension scheme. By the end of the year this had reduced from two employees down to one employee. This option is not available for new employees. There were no accrued contributions at the year end.

The Group pension charge for the year includes contributions payable to The Pensions Trust of £45,934 (2021: £41,272) and personal pensions of £10,271 (2021: £11,867). At the year end £nil (2021: £nil) was accrued in respect of contributions.

This gives a total combined Group pension cost for The Teachers' Pensions, The Pensions Trust and private pensions of £511,958 (2021: £495,636) with £nil accrued.

20 Members' Liability

The number of members at 31st July 2022 was 12 (2021: 13) and their liability in the event of the winding-up of the Charity is limited to £1 per member.

21 Related Party Transactions

There were no related third party transactions in 2022. In the prior year, there was one Governor during the year whose Spouse was employed by the school as a Teacher. The Spouse's remuneration for this employment was £16,410, and fell under the normal employment terms and conditions of the school. The Spouse had undertaken this role before the role of Governor commenced.

Page: 23