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2025-08-31-accounts

Docusign Envelope ID: 1888C76C-DF76-4181-B6BD-6D9855E18557

Company registration number: 02537501 Charity registration number: 1000392

The David Lewis Centre

(A company limited by guarantee)

Annual Report and Financial Statements for the Year Ended 31 August 2025

Menzies LLP One Express 1 George Leigh Street Manchester M4 5DL

Docusign Envelope ID: 1888C76C-DF76-4181-B6BD-6D9855E18557

The David Lewis Centre

Contents

Reference and Administrative Details 1 to 2
Trustees' Report (including the Strategic report) 3 to 13
Statement of Trustees' Responsibilities 14
Independent Auditors' Report 15 to 18
Statement of Financial Activities 19
Balance Sheet 20
Statement of Cash Flows 21
Notes to the Financial Statements 22 to 37

Docusign Envelope ID: 1888C76C-DF76-4181-B6BD-6D9855E18557

The David Lewis Centre

Reference and Administrative Details Trustees P Brearley E Cartwright L Ellis C Green Prof V Halliwell A V Hollows, (resigned 10 September 2025) G Loughlin C Spencer T Kalloo, (Chair) P McKevitt P Walker Principal Officers - Key Chief Executive John Heritage Management Personnel Company Secretary Neil Edwards Key Management Personnel Director of Adult Residential and Day Opportunities Director of Clinical Services, Quality & Compliance Director of Education Director of Finance and Estates Director of People, Culture and Systems Patrons HRH The Duchess of Edinburgh GCVO Viscount Ashbrook MBE Registered Office Mill Lane Warford Alderley Edge Cheshire SK9 7UD Auditor Menzies LLP One Express 1 George Leigh Street Manchester M4 5DL

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Docusign Envelope ID: 1888C76C-DF76-4181-B6BD-6D9855E18557

The David Lewis Centre

Reference and Administrative Details

Solicitors: Hill Dickinson LLP No 1 St. Paul's Square Liverpool L3 9SJ Axis Professional Suite 21 - Edwin Foden Business Centre Moss Lane Sandbach Cheshire CW11 3AE Bankers National Westminster Bank Plc Spring Gardens Manchester M60 2DB

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Docusign Envelope ID: 1888C76C-DF76-4181-B6BD-6D9855E18557

The David Lewis Centre

Trustees' Report (including the Strategic report)

The Trustees, who are directors for the purposes of company law, present the annual report, including the Strategic Report, together with the financial statements and auditors' report of the charitable company for the year ended 31 August 2025.

Name and Registered Office of the Charity

The full name of the charity is The David Lewis Centre and its registered office and principal operating address is Mill Lane, Warford, Alderley Edge, Cheshire, SK9 7UD. In presenting the work of the charity and in respect of specific business areas, the charity also makes itself known as David Lewis, The David Lewis School, and The David Lewis College.

Trustees and Officers

The Trustees and Officers serving during the year and since the year end were as follows:

Trustees: P Brearley E Cartwright L Ellis C Green Prof V Halliwell A V Hollows, (resigned 10 September 2025) G Loughlin Dr S Tebby-Lees (resigned 31 January 2025) C Spencer T Kalloo, (Chair) P McKevitt P Walker (appointed 31 January 2025)

No Trustee has any financial interest in the charity.

Structure, governance and management

Constitution

The charity was formed in 1904 and was originally constituted as a trust. On 6 September 1990 the charity converted to a private company limited by guarantee without share capital under Section 30 of the Companies Act. At an Extraordinary General Meeting held on 17 April 2009 the company adopted a new Memorandum of Association under which it is now governed. The Articles of Association were amended by special resolution on 11 December 2018.

The charity's Companies House registration number is 02537501 and the Charity Commission registration number is 1000392.

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Docusign Envelope ID: 1888C76C-DF76-4181-B6BD-6D9855E18557

The David Lewis Centre

Trustees' Report (including the Strategic report)

Governance and Management

The charity is managed by a Board of Trustees which is required to meet a minimum of four times per year, although under present practice it meets a minimum of five times per annum. The Board of Trustees has formally adopted the Charity Governance Code for larger charities 2020.

The Board of Trustees delegates some responsibilities to committees which also meet regularly throughout the year. Current committees are Quality, Risk & Governance, Resources, School Governing Body and College Governing Body, each of which is chaired by a Trustee. “Assure and escalate” documents are prepared from all of the Trustee Board committee meetings. These are circulated to all Trustees and the Chairs of each committee report on the content to the Trustee Board meetings.

As recommended by the Charity Commission’s Governance Code, the Board regularly reviews its own performance and that of individual Trustees. Coordinated by the Company Secretary, the assessment process gathers Trustees’ feedback on the Board’s balance of skills, experience and knowledge, its diversity in the widest sense, how the Board works together and other factors relevant to its effectiveness. The consolidated assessment of performance is reviewed by the Governance Committee, which if required, recommends improvement actions to the Board. From 2019 onwards, the Board adopted the process whereby the Board Chair discusses individual performance with each Trustee and the Board Chair’s own performance is discussed and reviewed by the Chair of the Quality, Risk & Governance Committee, having collated the views of Board members.

The Board of Trustees appoints a full-time Chief Executive who chairs an Executive Board with responsibility for the day to day management of the charity within the policies, strategy and financial controls approved by the Trustees. There are currently five full-time operational Directors covering Pathways & Community, Education & Life Skills, Assessment & Treatment, Finance & Estates and Human Resources, Culture & Systems.

There is also a part-time Medical Director who takes clinical responsibility for our adult residents.

The School and College Governing Bodies are responsible for the conduct of The David Lewis School and The David Lewis College and carry out all the statutory requirements of the respective School and College Governing Boards. The Trustees appoint up to three of their number to sit on the School and College Governors Committee, one of the Trustees within each Governing Board chairs that Board.

Remuneration policy for key management personnel

The Trustees have identified the Executive team as the key management personnel of the charity. Executive pay is determined by the Trustee Board. Decisions are informed by market testing of salaries, subject to affordability.

The Chief Executive will undertake an annual review of pay for all staff based on the impact of cost of living changes and what the charity can afford and make recommendations to the Trustee Board. The Board will also be asked to review the pay of the Executive Team based on the same criteria.

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Docusign Envelope ID: 1888C76C-DF76-4181-B6BD-6D9855E18557

The David Lewis Centre

Trustees' Report (including the Strategic report)

Organisational structure and method of election of Trustees

The Quality, Risk & Governance Committee oversee the recruitment of new Trustees. The Committee at the request of the Board carry out an annual Trustee skills audit to identify any skills gaps the recruitment should seek to fill. Trustee vacancies are promoted widely, normally in the media and via other organisations and professional bodies so as to encourage a broad and diverse range of applicants. Shortlisting and interviews are completed by the Quality, Risk & Governance Committee which subsequently makes an appointment recommendation to the Board. All new Trustees are provided with an induction which includes relevant reading materials related to the governance of David Lewis. The Trustees are also required to visit the various services to meet key staff and familiarise themselves with the activities of the charity.

Trustees can be appointed by the Members at any Trustee Board Meeting in accordance with the Articles of Association of the charity. The number of Trustees shall not normally be less than seven and no more than twelve. Trustees are appointed for a three year term of office and may offer themselves for re-election at the end of their term of office subject to a total term of office not exceeding nine years.

Objectives and activities

Public benefit

In setting objectives and planning activities the Trustees have given careful consideration to the Charity Commission’s general guidance on public benefit.

The objects of the charity, as set out in the Memorandum of Association of the company, are:

The relief of those who are in need by reason of mental or physical disabilities, including epilepsy and associated neurological conditions (“the Beneficiaries”) in particular but without limitation by providing:

The organisation aims to continue providing a high level, holistic service to benefit those individuals with combinations of complex physical, mental health, behavioural, epilepsy and neurological conditions. A business plan for the year is in place which includes the operation of a Special Needs School, a specialist College of Further Education, adult residential facilities including community housing and adult continuing education facilities. Primary and secondary medical services, together with a wide range of therapies and professions allied to medicine, are available to support the organisation in achieving its stated objectives.

Geographical Organisation

The charity operates from its head office in Warford, Cheshire. Residential and assessment services are provided at the main site at Warford and community houses are provided in other locations in Cheshire. All services are available for service users and contracting authorities from anywhere in the United Kingdom and occasionally overseas.

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Docusign Envelope ID: 1888C76C-DF76-4181-B6BD-6D9855E18557

The David Lewis Centre

Trustees' Report (including the Strategic report)

Investments and Cash Management

The Memorandum and Articles of Association of the charity permit wide powers for investment subject to such conditions and such consents as may be required by law. The Trustees’ current policy for investment is related to the working capital requirements and banking arrangements of the business.

The Trustees believe that at present the most efficient, flexible and risk averse investment is to retain surpluses as cash. The nature of the business cash flow profile dictates that these surpluses are required to fund activities at certain times of the year. Any surpluses are invested in secure Treasury deposits.

There have been no acquisitions of investments during the year.

Insurance for Trustees

The Trustees are included in the Directors and Officers insurance cover which is maintained by the charity for all Officers, Directors and Trustees. The Memorandum of Association was revised by Special Resolution at the Annual General Meeting in 2004 to enable Trustees to benefit from insurance by providing exemption to the clause which prevents Directors from benefiting from the company.

Equality Act 2010

The Equality Act 2010 legally protects people from discrimination in the workplace and in wider society. There are 9 protected characteristics covered by the Equality Act: age, gender reassignment, being married or in a civil partnership, being pregnant or on maternity leave, disability, race, religion or belief, sex and sexual orientation. The charity ensures that it meets its legal obligation to all employees and service users with protected characteristics and is responsive to the needs of those who have multiple protected characteristics - often termed intersectionality. Whilst our responsibilities are to protect people from discrimination, in doing this we tend to focus on three main areas:

Reviewing data sources against such criteria can identify areas where access, experience or outcomes is detrimentally affected for some protected characteristics over others and enables organisations to take positive action to support a rebalance of indicators.

Employee Consultation

The charity places considerable value on the involvement of its employees and has continued to keep them informed on matters affecting them as employees and on the various factors affecting the performance of the charitable company. This is achieved through formal and informal meetings, monthly team briefings, various internal publications.

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Docusign Envelope ID: 1888C76C-DF76-4181-B6BD-6D9855E18557

The David Lewis Centre

Trustees' Report (including the Strategic report)

Modern slavery statement

David Lewis is a national charity that provides health, adult social care and education services.

We deliver registered services (with Ofsted and CQC) and other services. David Lewis employs over 1,100 people from a range of backgrounds and communities, and we have a strategic focus on doing all we can to “recruit the best people” which is one of our strategic ambitions as a charity. David Lewis is committed to treating all people with respect and dignity.

We are committed to preventing modern slavery and human trafficking within our organisation and we use reasonable endeavours to ensure that our supply chains are free from modern slavery, human trafficking and are aligned to our values as a charity.

We take our responsibility seriously to comply with all principles of the Modern Slavery Act 2015. We are satisfied from our own due diligence and processes that we are free from modern slavery and human trafficking and that our employees have the right support, guidance and direction from our recruitment policies, code of conduct, safeguarding and whistleblowing policies to raise any concerns.

During 2025/2026 we will review our compliance with the requirements of the Modern Slavery Act.

The David Lewis Executive Team and Board of Trustees are aware of their responsibilities in line with this statement.

Going concern

The charity has sufficient financial resources, together with contracts with local authorities and suppliers varying from 1 to 24 months depending on the service provided. Having reviewed the charity’s forecasts and other relevant evidence including various downside scenarios, the Trustees have a reasonable expectation that David Lewis has adequate resources to continue in operational existence for the foreseeable future. They therefore continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Fundraising

In addition to employing a Head of Fundraising and Communications and Fundraising Officer, the charity has continued to engage an external Fundraising Consultant to support with its grants and trusts fundraising activities. It does not contract with any other individual, group or company of professional fundraisers in pursuance of its fundraising activities. David Lewis is registered with the Fundraising Regulator and actively seeks to comply with these standards. The charity has not received any complaints in the reporting period with regards to its fundraising activities.

The charity operates a fundraising policy whereby detailed standards are laid out to protect vulnerable people and other members of the public. The policy has measures in place to protect those people from behaviours which are an unreasonable intrusion on their privacy, are unreasonably persistent or place undue pressure on a person to give money or other property.

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Docusign Envelope ID: 1888C76C-DF76-4181-B6BD-6D9855E18557

The David Lewis Centre

Trustees' Report (including the Strategic report)

Strategic Report

Achievements and performance

In the 12 months since the last Report and Accounts, the charity has continued to provide high quality services and make investments in infrastructure and facilities at the Warford site and in neighbouring Cheshire towns.

The external environment has continued to follow the trend for devolved decision making to local government organisations. Pressure on public finances more generally continues, with all agencies having to make difficult decisions on how to prioritise and ration the money available while facing an upward trend in the number of people with complex needs requiring specialist services which are resource intensive and relatively expensive when compared to the needs of the general population.

Our continued insistence that commissioners fund assessed need in full means we are able to maintain and improve service standards and invest in new facilities and staff development to meet the changing needs of residential and day service users.

Against this backdrop in the year to 31 August 2025, David Lewis:

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Docusign Envelope ID: 1888C76C-DF76-4181-B6BD-6D9855E18557

The David Lewis Centre

Trustees' Report (including the Strategic report)

Strategic Report

Our staff teams are our most important asset. By investing in training, ensuring our employment terms are well matched against the local and national employment market and providing support to ensure employee absences are well managed, we continue to ensure as low a staff turnover and absence rate as possible. Combined with a highly skilled workforce, we consistently deliver a high standard of care to people placed in our care.

Through the year the number of service users accessing services in each part of the organisation was as follows:

Pathways & Community - residential
Pathways & Community - day placement
Education & Life Skills - residential
Education & Life Skills - day placement
Total		 2025
2024
No
No
148
141
52
44
10
6
95
66
305
257

Financial review

The charity receives the majority of its income from local authorities, integrated care boards and the Education & Skills Funding Authority (ESFA) for education and social care services. Fee and service related income increased to £43,502,000 in the year ended 31 August 2025 (2024: £35,580,000) due to the growth in our day and education services.

The overall result produced a net surplus for the year of £1,706,000 (2024: deficit of £1,328,000). Cash at bank was £5,732,000 (2024: £5,347,000). Significant demands will be placed on this cash for continuation of our extensive refurbishment plan such that in the fiscal year ended 31 August 2026 it is expected to reduce by a further £2,500,000 without any significant fundraising donations or loan financing. This is despite prioritisation and rationalisation of the projects needed. The charity wishes to embark on more than it can, but without additional sources of financing or significant fundraising is limited in what it can achieve.

Net current assets at £5,480,000 (2024: £5,325,000) have increased slightly this year due to debtors and cash reserves increasing more than the increase in creditors.

The amount of total funds held by the charity at 31 August 2025 is £21,688,000 (2024: £19,982,000), of which £177,000 (2024: £116,000) are restricted funds.

The charity greatly values the support of its individual and corporate donors.

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Docusign Envelope ID: 1888C76C-DF76-4181-B6BD-6D9855E18557

The David Lewis Centre

Trustees' Report (including the Strategic report)

Strategic Report

Plans for future periods

Aims and key objectives for future periods

The charity continues to be flexible and responsive to an uncertain and difficult operating environment. The lack of clarity in a demand led market makes detailed planning over an extended timeline difficult. The charity will continue to respond and evolve and by establishing closer working relationships with commissioners we expect to reduce this uncertainty.

In 2024 the Trustees approved the Long-Term Plan 2024-2027. This plan anticipates that Pathways & Communities residential is expected to remain fairly static, but Day Opportunities and College & School student numbers are expected to increase, building on the growth we have already achieved in the prior fiscal year.

The plan also includes major investment into residential property refurbishments on the Warford site and in new facilities in Education & Day Opportunities. The charity had previously built a high level of reserves in order to meet these investment requirements and these statements demonstrate the implementation of that plan.

The charity will continue to adapt and improve residential properties at Warford and in the community to respond to changing needs and demands. There will continue to be investments in IT systems to promote effective and efficient operations in key areas, particularly care management. Facilities will be developed supported by fundraising and grants to promote development of learning and skills for service users and provide facilities that differentiate David Lewis from local authority run provision.

The programme of significant renewals investment at the Warford site in bathrooms, kitchens and infrastructure have continued to ensure that our facilities continue to be recognised as high quality and are well matched to the needs of our service users.

From 2025 onwards we have been embarking on an ambitious capital refurbishment plan to significantly improve our residential offer over five years. The charity will continue to adapt and improve residential properties at Warford and in the community to respond to changing needs and demands. Some of our building stock is over a century old and becoming unfit for purpose, our maintenance expenditure budget is growing. Several of our buildings were created for large group communal living and are currently empty or not used to capacity. Our medium-long term plan involves demolishing or reconfiguring these buildings and constructing smaller purpose-built properties that are more attuned to modern living. We have invested in our fundraising team over the period to support growth in this area and will be launching a capital fundraising appeal.

From 2025 onwards we have been embarking on an ambitious capital refurbishment plan to significantly improve our residential offer over five years. To support this, we will be launching a capital appeal.

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Docusign Envelope ID: 1888C76C-DF76-4181-B6BD-6D9855E18557

The David Lewis Centre

Trustees' Report (including the Strategic report)

Strategic Report

Risk Management

The Trustees regularly review the charity's activities to identify the major strategic, business and operational risks which the charity faces and to confirm that systems have been established to enable regular reports to be produced so that the necessary steps are taken to mitigate these risks. The systems established to mitigate risks are periodically reviewed to ensure that they still meet the needs of the charity and to determine whether any remedial action needs to be taken. Risks are reviewed regularly by the Quality, Risk and Governance Committee and reviewed annually by the Board.

The principal risks and uncertainties identified through this review are:

Reserves Policy

The Trustees review the reserves policy annually to reassess the risks and reflect changes in the environment in which David Lewis is operating, recognising that it is vulnerable to economic downturns given the pressures which affect its core local government marketplace.

Based on an evaluation of the services David Lewis provides, the Trustees’ review of the reserves policy on 20 May 2025 confirmed the charity should hold a level of unrestricted cash reserves of at least one month’s operating costs (currently £3m) at each period end.

At 31 August 2025 the unrestricted net liquid funds (cash at bank and in hand, less designated and restricted funds) amounted to £5,555,000 (2024: £5,231,000). The Trustees have excluded the bank loans from the calculation of unrestricted funds because the payment of the loans is clearly defined and the annual cost is fully provided for in the business plans.

The charity is holding a higher than required reserve to support our ambitious 5-year residential care transformation plan which it has been calculated will cost in excess of £15m between 2025 – 2030. The capital required to deliver this plan will be partly an investment of reserves, a small loan, and fundraising income derived through the capital fundraising campaign.

Section 172(1) statement

Trustees have a duty to promote the success of the charity and, in doing so, are required by section 172(1) of the Companies Act 2006 to have regard to the following specific factors. This statement confirms that the Trustees meet those obligations by:

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Docusign Envelope ID: 1888C76C-DF76-4181-B6BD-6D9855E18557

The David Lewis Centre

Trustees' Report (including the Strategic report)

Strategic Report

With regards to the factors below, the charity has in place a range of policies and processes that promote corporate responsibility and ethical behaviour to ensure all are satisfied. The Governance Committee review and approve such policies on behalf of the Board. The Board also seeks feedback and offers guidance on actual practices.

Energy and Carbon Reporting

The annual energy use figures are shown below:

2025 2024
Energy Consumption 6,983,955 kWh 5,638,875 kWh
Emissions from gas and fuel use 1,152 tonnes CO2 1,218 tonnes CO2
Emissions from electricity use 282 tonnes CO2 289 tonnes CO2
Aggregate emissions 1,403 tonnes CO2 1,508 tonnes CO2
Emissions per FTE 1.64 tonnes CO2 1.88 tonnes CO2

The above figures are re-produced from the energy and fuel companies’ billing statements for the year.

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Docusign EnvelopÈ ID". 1888C76C-DF764181-868D-6D9855E18557 Tbe David Lejyis Centre Trustees, Report (including the Strategie report) Disclosure of information ¢0 guditor Each rneffl￿r has tsken Steps that they ought to have laken as a m¢mber itt order to make themselves aware of any relevant audit inforniation and to establish That the charitys auditor is aware of that inforniation. The Trusl¢es confim that there is no relevant infornution that they know of and of whi¢h they know the auditor is unawdrr. A¢knowled¥ements The achievernents of th¢ last y¢ar are the result of hard work and commitrncnt by all staff, Tw$t¢es and suppon¢rs of David Lewis. Whether WOTkiTr8 directly with the service us¢rs or behind the scenes. the Trusteeg would like to thank all involved for their continwin8 dedi￿tion both to the service users and kn the organisation a5 a th1¢. The TNsiee annual report attd Strdte8ic rew)rt Wds approved by th¢ Trust¢¢s of the charity on 26 F¢bruary 2026 and si8rKd on its behalf by.. N¢il Edwards Company S¢or¢tary Page 13

Docusign Envelope ID: 1888C76C-DF76-4181-B6BD-6D9855E18557

The David Lewis Centre

Statement of Trustees' Responsibilities

The Trustees (who are also the directors of The David Lewis Centre for the purposes of company law) are responsible for preparing the Trustees' Report (including the Strategic report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including its income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that can disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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Docusign Envelope ID: 1888C76C-DF76-4181-B6BD-6D9855E18557

The David Lewis Centre

Independent Auditor's Report to the Members of The David Lewis Centre

Opinion

We have audited the financial statements of The David Lewis Centre (the 'charity') for the year ended 31 August 2025, which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (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 responsibilities for the audit of the financial statements section of our report. We are independent of the charity 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 charity's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 Trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

In connection with our audit of the financial statements, 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 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 or a material misstatement of the other information. 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.

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Docusign Envelope ID: 1888C76C-DF76-4181-B6BD-6D9855E18557

The David Lewis Centre

Independent Auditor's Report to the Members of The David Lewis Centre

Opinion on other matter prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Trustees' Report (including the Strategic report).

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

Responsibilities of Trustees

As explained more fully in the Statement of Trustees' Responsibilities (set out on page 14), the Trustees 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 Trustees 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 Trustees are responsible for assessing the charity'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 Trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor 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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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Docusign Envelope ID: 1888C76C-DF76-4181-B6BD-6D9855E18557

The David Lewis Centre

Independent Auditor's Report to the Members of The David Lewis Centre

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.

We considered the nature of the charitable company’s industry and its control environment, and reviewed the charitable company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory frameworks that the charitable company operates in, and identified the key laws and regulations that:

We discussed among the audit engagement team including relevant internal specialists such as pensions regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

As a result of performing the above, we identified the greatest potential for fraud or non-compliance with laws and regulations in the following area, and our specific procedures performed to address it are described below:

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

reading minutes of meetings of those charged with governance and reviewing correspondence with Ofsted and Care Quality Commission.

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Docusign Envelope ID: 1888C76C-DF76-4181-B6BD-6D9855E18557

The David Lewis Centre

Independent Auditor's Report to the Members of The David Lewis Centre

Use of our report

This report is made solely to the charitable company's Trustees, 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 charity's Trustees those matters 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 anyone other than the charitable company and its Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

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...................................... Sue Hutchinson FCCA (Senior Statutory Auditor) For and on behalf of Menzies LLP, Statutory Auditor

One Express 1 George Leigh Street Manchester M4 5DL

17-Mar-2026 Date:.............................

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Docusign Envelope ID: 1888C76C-DF76-4181-B6BD-6D9855E18557

The David Lewis Centre

Statement of Financial Activities for the Year Ended 31 August 2025 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and legacies
4
Charitable activities
5
Other trading activities
6
Investment income
7
Total income
Expenditure on:
Raising funds
8
Charitable activities
9
Total expenditure
Net income/(expenditure)
Net movement in funds
Reconciliation of funds
Total funds brought
forward
Total funds carried
forward
24		 Unrestricted
funds
£ 000
140
43,502
107
69
43,818
(170)
(41,924)
(42,094)
1,724
1,724
18,040
19,764		 Restricted
funds
£ 000
210
-
-
-
210
-
(150)
(150)
60
60
117
177		 Endowment
funds
£ 000
-
-
-
-
-
-
(78)
(78)
(78)
(78)
1,825
1,747		 Total
2025
£ 000
350
43,502
107
69
44,028
(170)
(42,152)
(42,322)
1,706
1,706
19,982
21,688		 Total
2024
£ 000
367
35,580
147
97
36,191
(110)
(37,409)
(37,519)
(1,328)
(1,328)
21,310
19,982

All of the charity's activities derive from continuing operations during the above two periods.

The funds breakdown for 2024 is shown in note 24.

The notes on pages 22 to 37 form an integral part of these financial statements. Page 19

Docusign EnvelopÈ ID". 1888C76C-DF764181-868D-6D9855E18557 The David Lewis Centre (Reglstration number: 02537501) Balance Sheet as at 31 August 2025 2025 £OOD 2024 Note Fiied Assets Tangible assets 15 16.208 14,739 Current 855ets Stocks Debtors Cash at bank and in hand 16 17 18 53 2,151 5.347 2.688 5,732 8,492 7,551 Creditors: Amounts falling due within one year 19 (3.012) (2,226} Net eurrenl w55ets 5,480 5J25 Total a&sets le85 current ligbilities 21,688 20,064 Creditors: A￿u￿(S fAlling dut after one year 20 {52) Net assets Ineludimg pension asset 21,688 19.982 Funds fjf th¢ ch•rity: Endowment fuDds 24 1.747 1,825 Restrieted income fvDds Restricted ftjnds 24 177 117 Unr¢strict¢d income fuDds Unrestri¢t¢d thnds 24 19,764 18,040 To¢*1 funds 24 21,688 19.982 The fjnancial statements on pages 19 to 37 were appmved by the Trustees, and authorised for issue on 26 February 2026 and sigthed on their beha]f by.. T Kalloo Chair of TNstees Th¢ not¢s on pjges 22 tt) 37 fonn on int¢gTal pgrf of th¢s¢ financial statem¢nts. Page 20

Docusign Envelope ID: 1888C76C-DF76-4181-B6BD-6D9855E18557

The David Lewis Centre

Statement of Cash Flows for the Year Ended 31 August 2025

Note
Cash flows from operating activities
Net cash income/(expenditure)
Adjustments to cash flows from non-cash items
Depreciation
15
Investment income
7
Loss on disposal of tangible fixed assets
Working capital adjustments
(Increase)/decrease in stocks
16
(Increase)/decrease in debtors
17
Increase/(decrease) in creditors
19
(Increase) in retirement benefit obligations net of actuarial changes
22
Net cash flows from operating activities
Cash flows from investing activities
Interest receivable and similar income
7
Purchase of tangible fixed assets
15
Net cash flows from investing activities
Cash flows from financing activities
Repayment of loans and borrowings
20
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at 1 September
Cash and cash equivalents at 31 August		 2025
£ 000
1,706
743
(69)
-
2,380
(19)
(537)
789
-
2,613
69
(2,212)
(2,143)
(85)
385
5,347
5,732		 2024
£ 000
(1,328)
623
(97)
737
(65)
11
57
(337)
2,113
1,779
97
(2,285)
(2,188)
(81)
(490)
5,837
5,347

All of the cash flows are derived from continuing operations during the above two periods.

The notes on pages 22 to 37 form an integral part of these financial statements. Page 21

Docusign Envelope ID: 1888C76C-DF76-4181-B6BD-6D9855E18557

The David Lewis Centre

Notes to the Financial Statements for the Year Ended 31 August 2025

1 Charity status

The charity is limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. There are currently 11 Trustees who are also members of the company. Each of the Trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.

The address of its registered office is: Mill Lane Warford Alderley Edge Cheshire SK9 7UD

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared in accordance with Accounting 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) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Basis of preparation

The David Lewis Centre meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Going concern

The Trustees have, at the time of approving the Financial Statements, a reasonable expectation that there is no material uncertainty that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus, the Trustees continue to adopt the going concern basis of accounting in preparation of the Financial Statements.

Fund structure

The charity maintains various types of funds as follows:

Restricted funds These represent grants and donations received which are allocated by the donor for specific purposes.

Endowment funds Endowment funds represent grants, donations and legacies where the donor has stipulated that the capital must be retained.

Unrestricted funds These represent funds which are expendable at the Trustees discretion in furtherance of the objectives of the Charity.

Page 22

Docusign Envelope ID: 1888C76C-DF76-4181-B6BD-6D9855E18557

The David Lewis Centre

Notes to the Financial Statements for the Year Ended 31 August 2025

Income

All income is recognised in the Statement of Financial Activities when the conditions for receipt have been met and there is reasonable assurance of receipt. The following accounting policies are applied to income:

Fees and services related income

Fee income is accounted for in the period in which the service is provided.

Donations

Donations, gifts and all other receipts from fundraising are included in incoming resources when these are receivable unless the donor specifies that the receipt is for use in a future period, in which case the income is deferred until that period.

Where donors specify that donations are for particular restricted purposes, which do not amount to pre-conditions regarding entitlement, this income is included in incoming resources of restricted funds when receivable.

Legacies

Entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Where legacies have been notified to the charity, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed where material.

Investment income

Investment income is accounted for when receivable.

Grants receivable

Grants are recognised in the Statement of Financial Activities when the conditions for receipt have been complied with. Where a grant is received relating to a future accounting period, the income is deferred and not included in incoming resources until pre-conditions for use have been met.

Donated services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

In accordance with the Charities SORP (FRS 102), there were no services donated by volunteers, therefore, no amounts are included in the Financial Statements.

Page 23

Docusign Envelope ID: 1888C76C-DF76-4181-B6BD-6D9855E18557

The David Lewis Centre

Notes to the Financial Statements for the Year Ended 31 August 2025

Expenditure

Resources expended are included in the Statement of Financial Activities on an accruals basis. The following accounting policies are applied to expenditure.

Expenditure on raising funds

Fundraising and publicity costs represent expenditure in relation to staff members engaged in fundraising, and the related costs of the fundraising department. It also includes expenditure incurred during fundraising events.

Costs of charitable activities in furtherance of the charity's objects

This includes all expenditure directly related to the objects of the charity and comprises of the provision of services, medical research and property refurbishments. These are recognised as incurred.

Allocation of costs

The charity’s operating costs include staff and other related costs. These are allocated between costs of generating funds and charitable expenditure, which include costs of activities in furtherance of the charity’s objects, support costs and management and administration costs. Staff costs are allocated according to the costs of staff working directly in the relevant departments.

Support costs

These costs represent expenditure directly incurred in support of expenditure on the objects of the charity and include such operational and management costs which cannot be directly attributable to the provision of the above objects. They also include Governance costs incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements.

Tangible fixed assets

Tangible fixed assets are stated at cost, net depreciation and any provision for impairment.

The charity operates a capitalisation policy of including in fixed asset additions only items of expenditure over £5,000. Items under this amount are written off directly through the Statement of Financial Activities.

Impairment reviews are carried out if there are indicators of impairment.

Depreciation and amortisation

Depreciation is provided on all tangible fixed assets, other than freehold land, and assets under construction at rates calculated to write off the cost or valuation, less estimated residual value, of each asset by equal annual instalments over its estimated useful life as follows:

Asset class Depreciation method and rate Freehold properties 50 years Equipment and furniture 2-5 years Motor vehicles 3-5 years

Stock

Stocks are stated at the lower of cost and net realisable value. Provision is made for obsolete, slow moving or defective items where appropriate.

Page 24

Docusign Envelope ID: 1888C76C-DF76-4181-B6BD-6D9855E18557

The David Lewis Centre

Notes to the Financial Statements for the Year Ended 31 August 2025

Employee benefits

The charity provides a defined contribution pension scheme for all employees.

The amount charged to the income and expenditure account in respect of pension costs and other post-retirement benefits is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet.

Taxation

The charity is a registered charity and has no liability to corporation tax on its charitable activities under the Corporation Tax Act 2010 (chapters 2 and 3 of part ii, section 466 onwards) or Section 256 of the Taxation for Chargeable Gains Act 1992, to the extent surpluses are applied to its charitable purposes.

Financial instruments

Classification

The charity has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

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.

Cash at bank and cash in hand includes cash and short term highly liquid investments with short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

3 Critical Accounting Judgements and Key Sources of Estimation Uncertainty

ln the application of the charity's accounting policies, Trustees 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 estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Page 25

Docusign Envelope ID: 1888C76C-DF76-4181-B6BD-6D9855E18557

The David Lewis Centre

Notes to the Financial Statements for the Year Ended 31 August 2025

4 Income from donations and legacies

Donations and legacies;
Legacies
Donations from trusts/grants
Donations from individuals		 Unrestricted
funds
General
£ 000
21
24
95
140		 Restricted
funds
£ 000
-
203
7
210		 Total
2025
£ 000
21
227
102
350		 Total
2024
£ 000
68
160
139
367

5 Income from charitable activities

Pathways and Community
Education and Life Skills
6
Income from other trading activities
Trading income;
Sales of goods and services
7
Investment income
Interest receivable and similar income;
Interest receivable on bank deposits		 Unrestricted
funds
General
£ 000
32,459
11,043
43,502
Unrestricted
funds
General
£ 000
107
107
Unrestricted
funds
General
£ 000
69		 Total
2025
£ 000
32,459
11,043
43,502
Total
funds
£ 000
107
107
Total
2025
£ 000
69		 Total
2024
£ 000
28,742
6,838
35,580
Total
2024
£ 000
147
147
Total
2024
£ 000
97

Page 26

Docusign Envelope ID: 1888C76C-DF76-4181-B6BD-6D9855E18557

The David Lewis Centre

Notes to the Financial Statements for the Year Ended 31 August 2025

8 Expenditure on raising funds

Direct costs
£ 000
Costs of generating donations and
legacies
141
9
Expenditure on charitable activities
Pathways and Community
Education and Life Skills
Pathways and Community
Education and Life Skills		 Allocated
support costs
£ 000
29
Activity
undertaken
directly
£ 000
28,345
6,414
34,759
Activity
undertaken
directly
£ 000
25,845
4,842
30,687		 Total
2025
£ 000
170
Activity
support costs
£ 000
5,438
1,955
7,393
Activity
support costs
£ 000
5,284
1,438
6,722		 Total
2024
£ 000
110
2025
£ 000
33,783
8,369
42,152
2024
£ 000
31,129
6,280
37,409

Page 27

Docusign Envelope ID: 1888C76C-DF76-4181-B6BD-6D9855E18557

The David Lewis Centre

Notes to the Financial Statements for the Year Ended 31 August 2025

10 Analysis of governance and support costs

Support costs allocated to charitable activities

Basis of allocation
Admin and personnel
Headcount
Governance
Headcount
Depreciation
Beds
Domestic services
Beds
Estates
Maintenance
Finance and IT
Headcount
Transport
Beds
Basis of allocation
Admin and personnel
Headcount
Governance
Headcount
Depreciation
Beds
Domestic services
Beds
Estates
Maintenance
Finance and IT
Headcount
Transport
Beds		 Pathways and
Community
£ 000
2,249
37
437
309
1,220
1,000
185
5,437
Pathways and
Community
£ 000
2,071
28
358
319
928
1,428
152
5,284		 Education
and Life Skills
£ 000
412
7
229
162
864
183
97
1,954
Education
and Life Skills
£ 000
275
4
135
120
657
190
57
1,438		 Total
2025
£ 000
2,661
44
666
471
2,084
1,183
282
7,391
Total
2024
£ 000
2,346
32
493
439
1,585
1,618
209
6,722

11 Net outgoing resources

Net incoming/(outgoing) resources for the year include:

Operating leases - other assets
Audit fees
Other non-audit services
Depreciation of fixed assets		 2025
£ 000
88
33
3
743		 2024
£ 000
88
31
4
623

12 Trustees remuneration and expenses

No Trustees, nor any persons connected with them, have received any remuneration from the charity during the year.

No trustees have received any reimbursed expenses or any other benefits from the charity during the year.

Page 28

Docusign Envelope ID: 1888C76C-DF76-4181-B6BD-6D9855E18557

The David Lewis Centre

Notes to the Financial Statements for the Year Ended 31 August 2025

13 Staff costs

The aggregate payroll costs were as follows:

Staff costs during the year were:
Wages and salaries
Social security costs
Pension costs		 2025
£ 000
29,500
3,176
1,326
34,002		 2024
£ 000
25,916
2,421
1,107
29,444

The monthly average number of persons (including key management personnel) employed by the charity during the year expressed as full time equivalents was as follows:

Pathways and Community
Education and Life Skills
Support		 2025
No
606
111
138
855		 2024
No
594
79
129
802

The average monthly number of employees was:

Pathways and Community
Education and Life Skills
Support		 2025
2024
No.
No.
755
758
138
98
131
124
1,024
980

The number of employees whose emoluments fell within the following bands was:

£80,001 - £90,000
£90,001 - £100,000
£100,001 - £110,000
£120,001 - £130,000
£160,001 - £170,000		 2025
No
-
2
2
1
1		 2024
No
2
1
2
-
1

The total employee benefits of the key management personnel of the charity were £690,934 (2024: £631,434).

Page 29

Docusign Envelope ID: 1888C76C-DF76-4181-B6BD-6D9855E18557

The David Lewis Centre

Notes to the Financial Statements for the Year Ended 31 August 2025

14 Auditors' remuneration

14 Auditors' remuneration
Audit of the financial statements
Other fees to auditors
All other non-audit services		 2025
£ 000
33
3		 2024
£ 000
31
4

15 Tangible fixed assets

Cost
At 1 September
2024
Additions
Disposals
Transfers
At 31 August 2025
Depreciation
At 1 September
2024
Charge for the year
Eliminated on
disposals
At 31 August 2025
Net book value
At 31 August 2025
At 31 August 2024		 Freehold land
and buildings
£ 000
18,646
-
-
2,554
21,200
8,222
513
-
8,735
12,465
10,424		 Assets under
construction
£ 000
4,239
2,212
-
(3,123)
3,328
-
-
-
-
3,328
4,239		 Equipment
and furniture
£ 000
3,736
-
-
415
4,151
3,696
174
-
3,870
281
40		 Motor vehicles
£ 000
752
-
(7)
154
899
716
56
(7)
765
134
36		 Total
£ 000
27,373
2,212
(7)
-
29,578
12,634
743
(7)
13,370
16,208
14,739

The charity's freehold properties were valued on existing use basis as at 1 September 1997 by professionally qualified valuers Chesterton PLC.

The Trustees previously took advantage of the transitional rules of FRS 15 'tangible fixed assets' to retain the previous valuation of the freehold property as the equivalent cost of those assets, consequently the valuation has not been updated.

16 Stock

Stocks

2025 2024
£ 000 £ 000
72 53

Page 30

Docusign Envelope ID: 1888C76C-DF76-4181-B6BD-6D9855E18557

The David Lewis Centre

Notes to the Financial Statements for the Year Ended 31 August 2025

17 Debtors

Trade debtors
Prepayments and accrued income
Other debtors
18 Cash and cash equivalents
Cash at bank
19 Creditors: amounts falling due within one year
Bank loans
Trade creditors
Other taxation and social security
Other creditors
Accruals
Deferred income
Deferred income movement
Deferred income at 1 September
Resources deferred in the period
Amounts released from previous periods
Deferred income at year end		 2025
£ 000
2,055
445
188
2,688
2025
£ 000
5,732
2025
£ 000
72
174
779
298
1,477
212
3,012
2025
£ 000
102
212
(102)
212		 2024
£ 000
1,671
383
97
2,151
2024
£ 000
5,347
2024
£ 000
75
191
577
88
1,193
102
2,226
2024
£ 000
117
102
(117)
102

All deferred income relates to amounts received in respect of care and education taking place after the year end.

20 Creditors: amounts falling due after one year

2025 2024
£ 000 £ 000
Bank loans - 82

Page 31

Docusign Envelope ID: 1888C76C-DF76-4181-B6BD-6D9855E18557

The David Lewis Centre

Notes to the Financial Statements for the Year Ended 31 August 2025

The charity holds two loans with National Westminster Bank Plc. The loans are secured by a fixed charge over certain of the charity's property assets.

Loan one is repayable over 10 years from 25 June 2016. Interest on this loan is charged at 3.95%. The principal sum was £500,000.

Loan two is repayable over 10 years from 26 September 2016. Interest on this loan is charged at 2.97%. The prinicpal sum was £250,000.

21 Obligations under leases and hire purchase contracts

Operating lease commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

Land and buildings
Within one year
Between one and five years
After five years		 2025
£ 000
88
350
275
713		 2024
£ 000
88
350
363
801

22 Employment Retirement Benefits

The charity contributes to a defined benefit scheme, the Teachers’ Pension Scheme, as well as a defined contribution group personal pension plan. As at 31 January 2023, the company formally exited The Cheshire Pension Fund (a defined benefit scheme) due to the movement from deficit to surplus and ceased contributions from that point.

Page 32

Docusign Envelope ID: 1888C76C-DF76-4181-B6BD-6D9855E18557

The David Lewis Centre

Notes to the Financial Statements for the Year Ended 31 August 2025

Teachers' Pension Scheme

The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pension Scheme Regulations 2014. Membership is automatic for teachers in academy trusts. All teachers have the option to opt-out of the TPS following enrolment.

The TPS is an unfunded scheme to which both the member and employer makes contributions, as a percentage of salary - these contributions are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

Valuation of the Teachers’ Pension Scheme

The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury every 4 years. The aim of the review is to ensure scheme costs are recognised and managed appropriately and the review specifies the level of future contributions.

Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2020. The valuation report was published by the Department for Education on 27 October 2023, with the SCAPE rate, set by HMT, applying a notional investment return based on 1.7% above the rate of CPI. The key elements of the valuation outcome are:

The result of this valuation was implemented from 1 April 2024. The next valuation result is due to be implemented from 1 April 2027.

The employer’s pension costs paid to TPS in the period amounted to £216,330 (2024: £121,293).

A copy of the valuation report and supporting documentation is on the Teachers’ Pensions website. (https://www.teacherspensions.co.uk/news/employers/2023/10/valuation-result.aspx)

Under the definitions set out in FRS 102, the TPS is an unfunded multi-employer pension scheme. The charity has accounted for its contributions to the scheme as if it were a defined contribution scheme. The charity has set out above the information available on the scheme.

Defined contribution pension scheme

The charity operates a defined contribution pension scheme. This scheme is open to all employees. For employees with more than twelve months service the contribution rates are 6% for the employer and 6% for employees. For employees auto-enrolled under the statutory arrangements the contribution rates are 3% for the employer and 5% for employees.

The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to £1,325,769 (2024: 1,106,670).

Page 33

Docusign Envelope ID: 1888C76C-DF76-4181-B6BD-6D9855E18557

The David Lewis Centre

Notes to the Financial Statements for the Year Ended 31 August 2025

23 Commitments

Capital commitments

The total amount contracted for but not provided in the financial statements was £392,000 (2024: £1,740,000).

24 Funds

Unrestricted funds
General
General fund
Revaluation reserve
Restricted funds
Appeal Funds - other
Endowment funds
Expendable
Revaluation reserve
Other reserve
Total funds		 Balance at 1
September
2024
£ 000
17,923
117
18,040
117
1,483
342
1,825
19,982		 Incoming
resources
£ 000
43,818
-
43,818
210
-
-
-
44,028		 Resources
expended
£ 000
(41,977)
(117)
(42,094)
(150)
(66)
(12)
(78)
(42,322)		 Balance at 31
August 2025
£ 000
19,764
-
19,764
177
1,417
330
1,747
21,688

Page 34

Docusign Envelope ID: 1888C76C-DF76-4181-B6BD-6D9855E18557

The David Lewis Centre

Notes to the Financial Statements for the Year Ended 31 August 2025

Unrestricted funds
General
General fund
Revaluation reserve
Pension scheme asset
Restricted
Appeal Funds - other
Endowment funds
Expendable
Revaluation reserve
Other reserve
Total funds		 Balance at 1
September
2023
£ 000
16,923
253
2,113
19,289
118
1,549
354
1,903
21,310		 Incoming
resources
£ 000
35,829
-
-
35,829
362
-
-
-
36,191		 Resources
expended
£ 000
(36,942)
(136)
-
(37,078)
(363)
(66)
(12)
(78)
(37,519)		 Transfers
£ 000
2,113
-
(2,113)
-
-
-
-
-
-		 Balance at
31 August
2024
£ 000
17,923
117
-
18,040
117
1,483
342
1,825
19,982

The revaluation reserve represents the increase in value of unrestricted assets when the land and buildings were revalued on 1 September 1997, reduced by the depreciation charged in the year and cummulative depreciation charged to date.

The appeal fund balances include various funds originating from the receipt of restricted donations and grants in the current year.

Transfers between funds reflect the completion of projects or satisfaction of any restrictions originally placed on the restricted donations.

The endowment funds represent the valuation of land and buildings endowed by The David Lewis Trust in 1904. These were revalued on 1 September 1997, having previously been revalued at 27 September 1990. These properties are held by The David Lewis Centre for Epilepsy Endowment, a charity registered under the same number as The David Lewis Centre.

Page 35

Docusign Envelope ID: 1888C76C-DF76-4181-B6BD-6D9855E18557

The David Lewis Centre

Notes to the Financial Statements for the Year Ended 31 August 2025

25 Analysis of net assets between funds

Tangible fixed assets
Current assets
Current liabilities
Total net assets
Tangible fixed assets
Current assets
Current liabilities
Creditors over 1 year
Total net assets
26 Analysis of net funds
Cash at bank and in hand
Net debt
Cash at bank and in hand
Net debt		 Unrestricted
funds
General
£ 000
14,461
8,315
(3,012)
19,764
Unrestricted
funds
General
£ 000
12,914
7,434
(2,226)
(82)
18,040		 Restricted
funds
£ 000
-
177
-
177
Restricted
funds
£ 000
-
117
-
-
117
At 1
September
2024
£ 000
5,347
5,347
At 1
September
2023
£ 000
5,837
5,837		 Endowment
funds
Expendable
£ 000
1,747
-
-
1,747
Endowment
funds
Expendable
£ 000
1,825
-
-
-
1,825
Financing cash
flows
£ 000
385
385
Financing cash
flows
£ 000
(490)
(490)		 Total funds at
31 August
2025
£ 000
16,208
8,492
(3,012)
21,688
Total funds at
31 August
2024
£ 000
14,739
7,551
(2,226)
(82)
19,982
At 31 August
2025
£ 000
5,732
5,732
At 31 August
2024
£ 000
5,347
5,347

27 Related party transactions

There were no related party transactions in the year.

Page 36

Docusign Envelope ID: 1888C76C-DF76-4181-B6BD-6D9855E18557

The David Lewis Centre

Notes to the Financial Statements for the Year Ended 31 August 2025

28 Comparative Statement of Financial Activities

Note
Income and Endowments from:
Donations and legacies
4
Charitable activities
5
Other trading activities
6
Investment income
7
Total income
Expenditure on:
Raising funds
8
Charitable activities
9
Total expenditure
Net expenditure
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
24		 Unrestricted
funds
£ 000
5
35,580
147
97
35,829
(110)
(36,968)
(37,078)
(1,249)
(1,249)
19,289
18,040		 Restricted
funds
£ 000
362
-
-
-
362
-
(363)
(363)
(1)
(1)
118
117		 Endowment
funds
£ 000
-
-
-
-
-
-
(78)
(78)
(78)
(78)
1,903
1,825		 Total
2024
£ 000
367
35,580
147
97
36,191
(110)
(37,409)
(37,519)
(1,328)
(1,328)
21,310
19,982

Page 37