2025-08-31-accounts

Annual Report & Accounts Chailey Heritage Foundation 2024-25

Contents

Introduction

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• Statement from Chief Executive 4-5
• About Chailey Heritage Foundation 6-7
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• The difference we make
Strategic Report – what we achieved and ambitions for the future
• Increasing opportunities and experiences 11-14
• Sharing excellence and leading innovation 16
• A voice for change 17
• Community connections 18-20
• Ways of working 22-23
• A great place to work 24-27
• Fundraising 28-29
• Our commitment to donors 30
Financial Review
• Financial Review 31
• Financial Activities and Results 31
• Funds 31
• Free Reserves Position 32
• Investment Policy and Performance 32
• Principal risks and uncertainties 32-33
• Outlook 34
• Environmental, social and governance report 34
– Charitable Objects 34
– Demonstrating Public Benefit 34
– Governing documents 34
– Boards 35
– Trustee induction and training 36
– Funds held as custodian 36
– GDPR 36
– Safeguarding 36
– Remuneration policy 36
– Equal opportunities 37
– Gender pay gap 37
– Section 172 statement 38
– Streamlined Energy & Carbon Reporting 39-40
– Auditors 40
Statement of Trustees’ responsibilities 41
Independent Auditor’s Report 42-44
Financial statements including notes 45-58
Trustees, Governors, executives and professional advisors 59
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Statement from Chief Executive

Welcome

This year has been one of resilience, progress and ambition for Chailey Heritage Foundation. Despite the continuing uncertainty surrounding SEND reforms, economic pressures and a challenging labour market, we have remained steadfast in our mission: to empower children and young people with complex disabilities to live their lives to the fullest and to support their families.

Our commitment to increasing

I am delighted to report that, even against these headwinds, the Foundation delivered a strong and stable financial performance. Significant legacies have enabled us to invest in our site infrastructure and specialist services, while demand for our provision has remained consistently high. Alongside this, our fundraising efforts and reliable income streams have ensured we can continue to provide the exceptional care and education that define Chailey Heritage Foundation. Our unique partnership with our NHS partners in Chailey Clinical Services enables us to provide the very best provision of treatment and care to the young people with such complex needs, so families can have total peace of mind.

opportunities and experiences for children, young people and their families has never been stronger. This year, we have expanded our community services by introducing new activities through The Activity Place , and enhancing family support with siblings’ days, holiday clubs and a dedicated family liaison service. These developments reflect our commitment to families and the belief that every child and young person should have the chance to thrive, learn and connect.

From the opening of Hazel’s Kitchen and the Dervia Sensory Suite, with grateful thanks to the donors who made those amazing facilities possible, to the growth of our Tech Room and assistive technology services, we are harnessing creativity and innovation to ensure every young person can flourish and achieve extraordinary things.

“Meaningful joint working between the care, health and education teams provides an effective wraparound service and ensures that there is a shared understanding of the goals that are important to the children.”

Looking ahead, we are going to continue to grow our wonderful team of volunteers who give up their time so generously. We will continue to share our knowledge, influence policy and strengthen partnerships to amplify the voices of

Ofsted

those we support by working in partnership with other organisations who support our vision. By sharing our skills and expertise within and beyond our sector, even more children and young people can benefit from our approaches.

Our strategy also focuses on strengthening our digital capabilities. We will invest in technology that empowers young people, as well as improves our operational efficiency. Alongside this, we will continue our commitment to environmental responsibility, increasing green energy use and reducing our carbon footprint. These steps will ensure Chailey Heritage Foundation remains future-ready while staying true to our values.

None of this would be possible without the dedication of our colleagues, volunteers, supporters and partners. Your commitment enables us to deliver life-changing possibilities every day.

Gareth Germer Chief Executive

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About Chailey Heritage Foundation

Chailey Heritage Foundation is a specialist disability charity for children and young people. We are a thriving community of support for children and young people living with complex disabilities, as well as their families.

Our Ofsted Outstanding school, welcoming residential homes and bustling centre combining gym and art therapy, a farm and café create a thriving community of support. Our expert teams dedicate time, patience and curiosity to nurturing the potential of every child and young person who comes to us.

Founded in 1903 by Grace Kimmins, we still embrace her ethos today. We believe that each child and young person should have every opportunity to fulfil their potential, no matter what the challenges. Our promise today is that:

We will never, ever, give up working with children, young people, and their families to empower them to make their own choices at every stage in life.

We have developed a world-class range of specialist services that are necessary to meet the needs of these disabled young people. We work in close partnership with Chailey Clinical Services, a nationally recognised specialist NHS tertiary service for children and young adults with complex neurological and physical disabilities. Being on the same site enables us to deliver uniquely, integrated multi-agency services for the benefit of the young people and their families.

Our Values

The Foundation aims for a values-based culture, and we expect all colleagues and volunteers to embody those values every day.

Commitment

Belonging

we are a community with a shared purpose. Everyone is accepted, everyone matters.

every day we strive to make a positive difference for the children, young people, and their families.

Ambition

Celebration

we celebrate what we achieve together.

we have high expectations. ‘OK’ is never good enough.

Our partners

The partnership with our NHS colleagues on site, Chailey Clinical Services (CCS), is our unique offering to the children and young people. This partnership enables wraparound care from a team of doctors, therapists, and other clinicians 24 hours a day.

What we do

Under the Chailey Heritage Foundation umbrella, the Charity delivers its services in three main areas:

Residential

Residential Community Services A range of boarding A range of on-site options for pupils services offering the of the school and a skills of our colleagues transition service for to families living in the young adults up to community. the age of 25.

Education

An Ofsted ‘Outstanding’ non-maintained special school for 3–19-year-olds.

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The difference we make

The impact of the Foundation’s services comes not just in how many children and young people use our services but in the difference we make to their lives and that of their families. You will learn more about this impact as you read the case studies of the young people using our services throughout this report.

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pupils in school 20
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All pupils have at least 1:1 support

children access residential care

Bed nights for children: 4,851

Number of sessions in The Activity Place: 20,136

Number of young adults accessing residential care: 16

Bed nights for young adults: 5,123

1,443 swims in hydrotherapy pool

936 sessions of hippotherapy delivered

30 sessions delivered by our Holiday Club

Meet Eva

Eva has been part of Chailey Heritage Foundation since she was very young. Her charming wit and warm, friendly nature make her a joy to be around, and today, as a proud member of the Post-16 Hanbury Department, Eva is thriving in an environment that celebrates her independence and empowers her to take an active role in school life.

At Chailey Heritage School, Eva benefits from a bespoke curriculum tailored to her individual needs and aspirations. Her dedicated team understands how to bring out the best in her, nurturing her strengths and supporting her development. This personalised approach is central to Chailey’s mission to enable every young person to achieve their full potential.

Communication is at the heart of Eva’s journey. With the support of her team, Eva uses a range of tools to express herself and connect with the world around her. A key part of her communication toolkit is a device that uses Picture Exchange Communication (PEC) symbols. With it, Eva constructs sentences, asks questions, plays games, and writes stories that reflect her vibrant personality. The device speaks in a voice she chose herself; a powerful expression of her own individuality.

In addition to her device, Eva uses Makaton and British Sign Language (BSL) to engage with her peers and support team. These tools give her the flexibility to communicate in ways that feel natural and empowering, helping her build meaningful relationships and participate fully in school life.

Mel, Eva’s mum highlights how

“Eva has made incredible strides in her time at Chailey, far surpassing our ideas of what she might achieve. The first time she made her “mum” sound I sobbed. She was 12!”

Eva’s progress means that we can now better understand what drives Eva and what she needs to make her happy. What she has achieved would not have been possible without both her determination and the expertise, support and guidance she gets from Chailey. Eva is passionate about developing her creativity, both in and outside the classroom. Whether she’s crafting a short story or sharing her thoughts with friends, she brings energy, imagination, and pride to everything she does. Her dedication to improving her communication has strengthened her confidence and deepened her connections with others.

Finding Her Voice, Sharing Her World

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Trustees’ Strategic Report Achievements and Performance

In 2024, we launched our new five-year strategy which focused on increasing our reach and impact. To support this, we introduced six areas of focus; three strategic priorities and three strategic enablers.

Our strategic priorities are:

Our strategic enablers are:

1. Community connections

1. Increasing opportunities and experiences

2. Ways of working

2. Sharing excellence and leading innovation

3. A great place to work

Our strategic plan cannot be delivered in isolation. We will need to draw on our community connections, invest in our people and strengthen the foundations of our organisation to grow.

3. Being a voice for change

In seeking to make this difference, we will continue to grow our services and share our skills and expertise with others. We will amplify the voices of children, young people and their families to influence policymakers to better consider their needs, so that barriers to achieving potential are removed.

Within this document, we will demonstrate what we have achieved over the past year to support the delivery of our strategy.

Strategic Priority 1:

Increasing Opportunities and Experiences

Retaining our Ofsted ‘Outstanding’ status for our school since 2007 is testament to the knowledge and expertise of those colleagues working in the school and the impact they have on the pupils. Every pupil has their own curriculum, built specifically for them based on their skills and desired outcomes. The endorsement from Ofsted that our innovative Individual Learner Driven (CHILD) curriculum works is high praise: “Pupils achieve exceptionally well because of this precise and ambitious approach”.

community as too many individuals with complex disabilities still face barriers to the specialist support they need. This year, we have started to make changes to our day service offering as well as ensuring we continue to utilise innovations in technology to improve accessibility and meet our growing demand.

“Staff are experts in what they do. They have superb knowledge about profound and multiple learning difficulties. This means that support for pupils is exemplary.” Ofsted

We are very experienced at preparing pupils and their families for life after school and we aim to do everything we can to support the future placement planning process. Throughout the transition journey, we involve colleagues from school and the residential bungalows, if the young person lives with us, as well as our therapy team. These are the professionals who know the young person well, and can support them, and their family, with the move into adulthood.

During the year, we transitioned the Hub and Learning Skills Centre (LSC) into the Activity Place, which will bring all of our activities together under one centralised community offering. It’s a place where anyone aged 16 or over with a disability can come and make new friends, work out in the gym, relax in a sensory session and enjoy a cookery or art session.

We have also made other improvements to this community space, adding in new activities to our timetables, including immersive dance sessions and accessible tech sessions for adults and a brand-new cookery space called Hazel’s kitchen.

“Thanks for all your help and support to get my son to National Star, I could never repay you.” Parent (whose son transitioned to a specialist college, National Star)

The Activity Place

All of these additions have helped us to provide 29% more activity sessions compared to last year, which was over 20,000 sessions in total.

We continue to be committed to expanding access to our exceptional services for our

FUNDRAISING

Hazel’s Kitchen has been completed which has transformed an underused corner of the Foundation into a vibrant activity space tailor made for young adults from our community to explore new flavours and learn new skills, providing 25% additional capacity.

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Trustees’ Strategic Report: Achievements and Performance

Inspectors also recognised the range of opportunities and experiences the children have whilst living with us: “Children enjoy a wide range of activities that are suited to their individual interests, both inside and outside the home.Children’s ideas and preferences are explored by supporting them to try new experiences and enabling them to communicate what they like and to what extent they want to participate. Children have been on holidays and had adventurous days out. For example, one child with complex health needs was helped to enjoy rides at a theme park.”

Residential service for children

We were delighted to retain our ‘Good’ rating with Ofsted for our Children’s Home at their recent inspection in November 2025. The Inspectors were complimentary in their report about our colleagues and the progress the children make: “Children make good progress in relation to their social and emotional well-being. One child has been able to expand the range of activities they can enjoy because staff have given them sensitive support to try new experiences. Another child has been able to start spending time with their family at home. The child’s parent said, ‘The staff are lovely, and I am very happy with how well he is looked after.’”

“Staff understand and support children’s individual communication needs. Children who are non-verbal are supported to share their views. Staff are skilled at responding to signs that children are becoming upset and use a sensitive approach to help them calm. Support is provided with a sense of fun, and children are continuously helped to make choices. This means that children’s feelings are considered and respected.” Ofsted

“Pupils thrive at this life-changing school.” Ofsted

“I wanted to thank you again for all your support. I genuinely couldn’t have managed some of those conversations with (social worker) without your help, it was such a difficult experience and your support meant so much.” Parent

Family services and support

We continue to put the families of the children and young people we support at the centre of our work and have continued the expansion of family services with siblings’ days, holiday and after-school clubs. As well as providing support for families at every step of their journey with us, we also enjoy celebrating achievements together. We hold our annual Celebration Day at the end of the summer term, where extended families get together to celebrate the successes of their young people.

The dedicated Family Room is well used by all families as a place to relax, meet up together and is especially helpful out of school hours for families visiting their young people who live with us in the bungalows.

”I enjoy sibling days because I meet new people and see friends I made last time.” Sibling

“Now we are living life again, whereas before we were just existing. We have time to breathe, have a social life, and even go on holiday! Seeing my son so settled and happy is extremely reassuring. The staff at Chailey Heritage are amazing and we feel so blessed that he’s able to live his life to the full there.” Parent

Funded through a separate linked charity, our Family Liaison Workers assist families throughout the year, on arriving at the school, in the annual review, during times of transition and by arranging social coffee mornings during term time.

Celebration Day

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Trustees’ Strategic Report: Achievements and Performance

Its popularity has led to plans for a second Tech Room within the school, ensuring we can meet the growing demand for accessible and innovative technology support.

Engineering and Assistive Technology

Our Engineering and Assistive Technology teams continue to provide and adapt specialist equipment that enables young people to communicate, move and learn more independently. From powered mobility and positioning systems to custom switches and communication aids, every solution is tailored to individual need.

“The Family Liaison Worker has helped and supported me when filling out complicated forms which are so important for our child’s future.” Parent

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The Tech Room has gone from strength to strength, expanding session availability through the Activity Place to include members of the wider community.

“Chailey has really far exceeded our high expectations ... and of course, they take my son’s likes into account and he gets to do all his favourite things whilst having new adventures and experiences too ... he really is living his best life.” Parent

FUNDRAISING

The Dervia Sensory Studio now provides three purpose-built individual sensory rooms where pupils at the school can experience environments designed by our expert team to support education, all sensory needs and development goals.

Meet Ellisha

Meet Ellisha, one of the inspiring young people who attends the Activity Place. With determination, expert guidance, and cutting-edge technology, Ellisha is taking bold steps towards greater independence and self-expression.

Working closely with our Assistive Technology team, Ellisha has been mastering the use of eye gaze communication; a transformative tool that allows her to interact with the world using only her eyes. Through focused practice and the unwavering support of our specialists, Ellisha has now received her own eye gaze device from NHS Chailey Clinical Services.

This technology has opened a new world of communication for Ellisha. By simply looking at words and symbols on a screen, she can now express her thoughts, needs, and personality with confidence. It’s a powerful reminder of how the right tools, in the right hands, can unlock potential.

But Ellisha’s journey doesn’t stop there.

She’s now integrating eye gaze into her daily life at home; from turning up the TV volume with a glance to messaging her family on WhatsApp. These milestones are more than just technological achievements, they’re steps towards autonomy, connection and independence.

Empowering Communication, Enabling Potential

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Trustees’ Strategic Report: Achievements and Performance

Strategic Priority 2:

Sharing Excellence and Leading Innovation

We continue to share our skills and expertise within and beyond our sector so that more children and young people can benefit from our approaches. This year we have ensured that we continue to offer learning opportunities for others, as well as developing partnerships ourselves.

people with disabilities and delivered external presentations this year on preparation for post-compulsory education, including at the International Children and Families Conference.

Opening our doors

Over this year, our school has hosted numerous educational visits from schools and universities from around the world to learn about our CHILD curriculum and how we deliver education to meet the needs of all pupils. We continue with the successful delivery of the Sex Factor (PSHE curriculum) to schools across the country.

As well as sharing our expertise on learning, we are developing collaborative research partnerships with UK and European universities, exploring how technology can support neurological development, communication and independence.

We have a growing presence nationally for our expertise in transitions for young

Strategic Priority 3:

A Voice for Change

We want to become a voice for change to amplify the experiences of children and young people living with complex disabilities as well as those of their families. This year, we have started that work by commissioning research and forging alliances with other organisations to influence policy at a local, regional and national level.

Our refreshed brand was supported by the launch of our new website, enabling us to raise awareness of our work, reach new audiences and start to position ourselves as an expert voice in our field.

Active in our sector

Within the wider disability sector, we have made active progress with our membership of The Voluntary Organisations Disability Group (VODG) which represents organisations within the voluntary sector who work alongside disabled people. This year, our CEO and Head of Technology were involved in shaping VODG’s IT Applications and Infrastructure Benchmarking Survey and analysing its findings. We have also been involved with their individual professional network meetings.

We have a close connection with the National Association of Special Schools, sharing our expertise and our specialised CHILD Curriculum. During the year, our Chief Executive, Gareth Germer, was a member of the NASS Trustee Board.

We were delighted to welcome the Dame Vera Lynne Children’s Charity with their move to our site and to offer their children access to our lifechanging facilities. We look forward to working in partnership with more charities in the coming year.

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Trustees’ Strategic Report: Achievements and Performance

Strategic Enabler 1:

Community Connections

Our aim is to harness the strength and resources of our local community to help us grow. Increasing the support from our local community through fundraising, volunteering activities and commercial income will help fund the resources we need to deliver our new strategy.

“It is life affirming – seeing the interaction of children with the horses and how they benefit from the physiotherapy.” Volunteer

Volunteering

We are immensely grateful to all our volunteers, including our Trustees and Governors, who give their valuable time and expertise in so many ways. Our therapeutic horse riding could not operate without the volunteers who support our colleagues and specialist Hippotherapists. This specialist horse riding requires four people to support each young person taking part in a riding session; two of these people are usually volunteers.

As well as concentrating on recruiting more volunteers to help with our essential services, this year’s focus has been the development of a Volunteer Framework to enhance how volunteers are recruited, supported, and recognised at Chailey Heritage Foundation. We have grown our volunteer base this year from 56 to 71. Our aim is to ensure every volunteer feels valued and appreciated for the vital role they play. Volunteer events were held during the year to share the charity’s five-year strategy, gather feedback on the volunteer experience, and to socialise and celebrate the charity’s history and services.

“Volunteering has given me a sense of purpose and achievement. The flexibility allows you some freedom which suits my life. I have met people in the local community and it gives me a sense of belonging.” Volunteer

Highlights of the last year included four longserving volunteers representing the charity at a Royal Garden Party at Buckingham Palace, radio interviews with Ashdown and Mid Downs Radio, and a Volunteers’ Week social media campaign, recognising our dedicated team.

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Trustees’ Strategic Report: Achievements and Performance 19

The Best of British Event

longtime supporter Vistry Homes South East, we are grateful for all your hard work and commitment.

Community fundraising

Supporters have taken on incredible challenges including marathons, channel swims, mountain climbs, and more, helping us to raise funds and awareness.

We have forged connections with local primary schools and a number of secondary schools that have helped fundraise for The Bradbury Den. They will be involved with the community elements of the build and will be able to access this wonderful resource, alongside pupils from Chailey Heritage School, once it is completed in the Spring of 2026.

There have been a number of amazing fundraising events which make an invaluable contribution and also raise the profile of the charity. From charity lunches in Brighton for 500 guests with our partners at Best of British, to wonderful concerts performed by the talented Jumbo Ensemble and Coro Nuovo, and golf days for

An Artist’s Impressions of the Bradbury Den

FUNDRAISING: The Bradbury Den

Work is now underway to build a unique learning and community space on our Patchwork Farm which will utilise local materials and traditional building techniques to create an eco-friendly, indoor-outdoor space for the children at Chailey and our local community.

Meet Seth

For eight-year-old Seth, the hydrotherapy pool has played a vital role in his journey towards greater independence.

Seth lives with congenital myopathy and significant hypotonia, which means he has very low muscle tone and requires a permanent tracheostomy to breathe. When he joined Chailey in 2021, he was unable to support the weight of his own head; a challenge that limited his ability to communicate and interact with the world around him.

Thanks to the specialist hydrotherapy pool, Seth now has access to a warm, weightless environment where he can move freely, safely and joyfully. In the water, he’s no longer confined by his wheelchair. He can stretch, float and explore his body’s capabilities in ways that aren’t possible out of the water.

Through regular sessions, Seth has developed the ability to nod and shake his head, giving clear ‘yes’ and ‘no’ responses to those who help to support him, putting him in control of his communication and right to decide.

“It gives Seth his right to choose. He can decide where he wants to go and when he wants to turn, instead of always relying on someone else to make those decisions for him.” Support team

Donations help fund the hydrotherapy pool and therefore fundraising plays a critical role in maintaining and expanding these services, ensuring that more young people like Seth can benefit from the same opportunities.

Seth’s story is a testament to what’s possible when specialist facilities and expert care come together.

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Trustees’ Strategic Report: Achievements and Performance

Strategic Enabler 2:

Ways of Working

We remain committed to modernising and streamlining our operations. By making the best use of our resources, mitigating risks, and focusing on sustainable growth, we strive to create a secure, efficient, and futureready environment for our residents, students, and colleagues.

This year, we have implemented several key improvements to our systems and infrastructure, ensuring that we continue to deliver high-quality services while enhancing safety, efficiency, and user experience.

Site Developments

Ensuring our site can operate to provide the services and support for our community is fundamental and so, this year, we have completed the solar panel installation, upgraded part of the school’s roof and introduced a new Nurse Call system.

Modern systems and secure operations

Environmental Sustainable

We completed the move to modern, cloudbased systems through Microsoft 365, improving reliability, data security and access for staff. Upgrades to our network and WiFi have reduced disruptions and improved connectivity across the site.

Following investment in further solar panels, which came fully online this year, the electricity we produce ourselves has jumped from 0.3% of the total used to 12%. This has helped reduce our carbon emissions significantly.

Cybersecurity remains a key priority, with enhanced device protection, better access controls and continued staff training. The rollout of SAGE Intacct, our new finance system, was completed successfully, bringing greater transparency and efficiency.

Heating the water for the hydrotherapy pool uses a lot of gas; this year a project examined the backwash process which uses unheated water. By adjusting this process, it keeps the pool water a more constant temperature so requiring less top-up heating.

Solar panels on one of our bungalows

The Chailey Carbon Challenge (CCC) is the charity’s plan to reduce our carbon footprint, switch to sustainable energy sources and reduce energy consumption and waste. During the year, we ran a campaign to raise awareness among colleagues to switch off equipment overnight and at weekends. We have examined room heating controls - turning down thermostats, adjusting heating out of hours, where possible, and changing the temperature of air conditioning units.

Absolute emissions have fallen by 9% since last year and relative emissions (compared to turnover) are down by 20%. With no green electricity purchased this reporting year, market-based emissions have fallen by 1% and 13% respectively.

Our SECR carbon emissions for the financial reporting year 2024-25 amounted to 382 tCO2e, with 68% arising from gas consumption.

Further information can be found in the Streamlined Energy and Carbon Report (SECR) on page 39.

Looking ahead

Our future focus is on strengthening the Foundation’s data and digital maturity - using information more effectively, exploring the responsible use of Artificial Intelligence, improving digital engagement with families and supporters, and expanding the use of mobile technology to support colleagues.

We have made the decision to purchase green electricity again, starting the new contract from September 2025.

Our goal remains clear: to use technology thoughtfully and creatively to empower young people and enhance the quality of life for everyone at Chailey Heritage Foundation.

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Trustees’ Strategic Report: Achievements and Performance

Strategic Enabler 3:

A Great Place to Work

We are proud of all the colleagues who work at the Foundation. Our ability to expand access to our services relies on having a strong team of skilled and dedicated individuals to deliver them effectively. We continue to strengthen our credentials as a great place to work; a place where colleagues feel proud to belong, supported to develop, and empowered to make a difference. Our focused People Plan underpins this, helping to deepen the culture, capability and connections that make Chailey Heritage Foundation a unique and rewarding place to work.

attention to communication, leadership and the overall colleague experience.

Recognition and Rewards

We have maintained our Living Wage Employer accreditation, as well as introduced enhanced maternity leave, further family-friendly policies and provided additional benefits through introduction of a free mortgage advice service.

Colleague wellbeing has continued to increase in focus, with visible investment in initiatives that support connection, recognition and appreciation. The introduction of Foundation Day marked an important milestone, bringing colleagues together from across the Foundation to celebrate achievements, share experiences and strengthen our sense of belonging. Alongside this, targeted communications, campaigns and local wellbeing activities have helped ensure colleagues feel valued and supported throughout the year.

This has been a year of consolidating progress and building stability, creating the conditions for colleagues to feel better supported, informed and equipped to do their best work. While turnover remains an area of focus, progress in several areas demonstrates the impact of sustained

Feedback from colleagues

Understanding how colleagues feel about working here remains central to our success. The 2025 Colleague Engagement Survey provided valuable insight into what matters most: pride, purpose and connection.

The survey achieved a 62% response rate, up from 42% the previous year, reflecting stronger engagement and willingness to share feedback. The Engagement Index rose to 7.3/10, showing high levels of purpose and alignment with our mission.

Feedback reinforced that colleagues value the supportive, team-oriented culture and feel motivated by the difference they make for the children and young people in our care. Insights from this survey are already shaping our priorities for 2025/26, with an emphasis on visible leadership, clearer development pathways and enhanced recognition, ensuring every colleague feels heard, appreciated and supported.

The Engagement Index rose to 7.3/10, showing high levels of purpose and alignment with our mission.

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Trustees’ Strategic Report: Achievements and Performance

Learning and development

Supporting people to grow and learn is so important with the need for such a highly skilled workforce to support the complex needs of the children and young people we care for. The launch of People Learn, our new digital learning platform, and the opening of our dedicated Learning Space represent major steps forward in making development more accessible, visible and meaningful for everyone.

Since launch, People Learn has recorded more than 1,153 logins and over 3,766 course completions, including hundreds of optional courses beyond mandatory requirements. This is a clear sign of growing engagement in personal and professional development.

to build skills, confidence and consistency in how they lead.

Together, these developments reflect a visible shift toward a culture of shared learning, collaboration and professional pride, helping to ensure that every colleague feels supported to develop and contribute their best.

Our leadership development offer has also strengthened, with ongoing People Manager training and accredited programmes such as the Principles in Team Leading qualification. Colleagues continue to value the opportunity

People Learn has recorded more than 1,153 logins and over 3,766 course completions

The Learning Space

FUNDRAISING: The Learning Space

“The Learning Space” is a new dedicated centre for colleagues from across the Foundation to develop their skills, gain specialist qualification and pursue their career goals.

Looking ahead

Further enhancements to our benefits and recognition programmes are planned for 2025/26, as we continue to build a fair, supportive and inclusive environment where colleagues feel valued and appreciated. We will be introducing a new Pay and Performance Framework and accompanying behaviours model.

By continuing to listen, act and build on what we have achieved, we will ensure Chailey Heritage Foundation remains a place where people feel valued, connected and proud to be part of our shared purpose.

Gender Pay Gap

You will find our full report on page 36 and also on our website.

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84% of our expenditure is for Number of colleagues Number of colleagues
colleague resource (headcount): (FTE):
84% 442 328
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Trustees’ Strategic Report: Achievements and Performance

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Fundraising
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We continue to be humbled by the generosity of our supporters, who help make it possible to deliver the specialist services, facilities and experiences that enable the children, young people and their families to reach their individual goals.

Our specialist services differentiate Chailey Heritage Foundation from other service providers:

• Hippotherapy: Specialist riding sessions using the motion of ponies to deliver unique physiotherapy experiences.

• Hydrotherapy: Individual physiotherapy sessions in our accessible pool, supporting mobility and leisure for families and the wider community.

• Farm Therapy: Inclusive sessions at Patchwork Farm, promoting interaction with animals and nature.

• Aquamovers: Combined speech, language, and physiotherapy for pre-school children, fostering early community connections.

In the past year, in addition to supporting the running costs of the specialist services, grants have funded a range of capital projects, which are showcased throughout our report:

• The Bradbury Den: Construction underway for an eco-friendly learning and community space on Patchwork Farm. This project was generously funded by many trust supporters as well as community fundraisers.

• Hazel’s Kitchen: Completed and now providing a vibrant cooking space for young adults to learn new skills. This new facility was generously supported by the Hazel Usher Fund and named in memory of Hazel Usher, a passionate advocate for people with disabilities.

• The Dervia Sensory Studio: Nearing completion, offering three bespoke sensory rooms for education and development. The funds for this amazing new facility were kindly donated by The Dervia Foundation.

• The Learning Space: A dedicated centre for staff training and career development.

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Hazel’s Kitchen

Friends of Chailey Heritage

During the year, the Friends of Chailey Heritage, long-standing supporters, decided to wind down the charity. The final balance of their funds was donated to Chailey Heritage Foundation to continue to support our family services’ offering. We are very grateful to everyone who was involved with the Friends of Chailey Heritage over so many years.

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Trustees’ Strategic Report: Achievements and Performance

Trustees’ Report on Financial & Other Statutory Matters

Our commitment to donors

We are committed to best practice in fundraising, and we are a member of the Fundraising Regulator and adhere to the Code of Fundraising Practice. We are also a member of the Chartered Institute of Fundraising. We have a Fundraising Policy, which is updated every three years, which addresses all forms of fundraising by the Charity, encompassing Appeals, Legacies, Grants and other monetary gifts, the principles of which are set out in our Fundraising Policy and our Complaints Procedure, which can be found on our website.

Most of our fundraising activity is carried out by in-house fundraisers employed by the Charity. Sometimes, for reasons of resource or expertise, we need the support of other professionals. The appointment of fundraising consultants/ professionals/third parties who are not part of the Charity must be agreed by the Trustees’ Development Committee and have the written agreement of the Director of Specialist Services and Income and Chief Executive prior to use by the Charity. As a matter of Policy, the Charity does not employ outside commercial fundraising organisations to interact directly with potential donors. We use a third-party organisation – Unity – to run our lottery. In all cases, we have third party agreements in place to ensure all third-party activities are carried out within strict guidelines and in line with the Charity’s fundraising ethos and their work is monitored to ensure standards are maintained. There were no compliance issues with a scheme or fundraising standard.

We take our responsibility towards supporters who may be considered vulnerable very seriously and our fundraising team have been trained to respond sensitively and appropriately to any individual whom they might consider to be in a vulnerable circumstance. All fundraising staff undertake relevant training, such as safeguarding, and our Fundraising Policy and procedures are reviewed regularly. All fundraising activity for the Foundation is supervised, coordinated, and directed by the Director of Specialist Services and Income under the guidance of the Chief Executive and Trustees’ Development Committee. The Trustees’ Development Committee regularly reviews all fundraising activity of the Foundation, and the Director of Specialist Services and Income reports to the full Board of Trustees three times a year.

We welcome third party initiatives in organising events on behalf of the Foundation and will, wherever we are aware, ensure that these third parties adhere to the Fundraising Policy and the Charity’s Principles for Fundraising.

No complaints were received by the Charity or by a person on behalf of the Charity.

Achievements and performance

The report and accompanying financial statements have been prepared under the Charities Act 2011, and in accordance with the requirements of the Companies Act 2006, the Company’s Memorandum & Articles of Association, and the Statement of Recommended Practice applicable to charities preparing accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued.

Our strategy and performance against our strategic goals are discussed in detail on pages 10 to 29 of this annual report.

Financial Review

The main pressures felt by the Foundation during the year, as with previous years, were those of availability of colleagues and inflation.

However, Local Authorities and Commissioners continue to face funding challenges, particularly around their High Needs Funding. This continues to severely impact our ability to increase our fees to fully reflect the true cost of providing our services. Overall, total Net Operating Income (before investment gains/ losses) was a surplus of £401k (2024: £866k) this year due to unanticipated legacy income of £400k. Our investment portfolio showed an unrealised gain at year end of £79k (2024: £318k), resulting in an overall Net Income of £480k (2024: £1,184k) for the year for the Foundation.

In line with our Charity ethos, all the surplus funds are reinvested in the Foundation for the benefit of the children and young people.

Financial Activities and Results

In the year to 31 August 2025, our total income was £18.4m (2024: £18m). The increase was mainly due to inflation and the increasing needs, and therefore cost, of the children and young people we support. Pupil numbers fell by 2 to 77, sadly due to a higher number of bereavements (5) than anticipated during the year.

In the same period, total expenditure has risen to £18m (2024: £17.1m). This increase was mainly due to increased staffing based on the needs of our young people.

The Foundation always strives for a positive return in all of its services. The Unrestricted General Fund made an overall deficit of £17k for the current year (2024: surplus of £315k) before the net gain on investments.

The overall surplus generated by the Foundation of £480k is due in large part due to legacies income of £756k.

The Charity’s services are also supported by other income e.g., income derived from unrestricted legacies, donations, and investment income. The investment portfolio showed a net unrealised gain at the year-end of £79k (2024: gain £318k) which is encouraging given market volatility.

The balance sheet continues to show the significant investment the Charity has made in leasehold buildings and equipment, with £12.7m invested in fixed assets or 65% of the Charity’s total funds. For example, we invested in several new solar panels and the replacement of St Martin’s school roof. Fundraising also provided £70k for a new kitchen skills area and £90k for sensory rooms in the school.

Debtors increased by £2m due to VAT charged on fees of £0.5m, a delay in raising invoices in previous financial year of £0.5m, an increase in accrued income of £0.3m relating to legacies recognised but not yet received as well as a general increase in accrued income due to the increase in 52-week boarders. Creditors also increased by £1.8m due mainly to an increase in deferred income of £0.9m relating to timing of tuition and social care fees and VAT due to HMRC of £0.6m. Cash balances have increased by £0.1m to £1.9m (2024: £1.8m) due in part to the surplus generated in the financial year.

Funds

At year end, the Charity had total accumulated funds of £19.4m (2024: £19m); of this £12.7m has been invested in fixed assets, predominantly our buildings and estate, and is mostly unrealisable because under the terms of the Charity’s lease, they revert to the Landlord if activities are discontinued. The Trustees are in the process of purchasing the freehold.

The remaining accumulated funds of £6.7m are split between unrestricted funds, which have increased to £6.3m (2024: £5.7m), and restricted funds of £0.4m (2024: £0.5m).

Restricted funds can only be used for specific purposes as imposed by donors and grant makers or as per the appeal terms under which the funds were raised. The fundraising department is charged with ensuring restricted funds are properly applied for the purpose for which they were given.

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Financial Review

Unrestricted funds can be formally earmarked by the Trustees for specific purposes as ‘designated funds’ or, if not earmarked, they remain as general funds of the Charity. Designated funds amounted to £0.86m at year end (see Note 20 on page 58), whilst £5.5m (2024: £5.1m) is largely held in uncommitted cash and fully marketable investments as ‘Free Reserves’. Free Reserves are held to meet working capital needs and to cover uninsured risks or unexpected costs and shortfalls.

Free Reserves Position

Over the year, the Trustees undertook a full review of the Foundation’s Reserves Policy to ensure it continues to support the long-term financial sustainability of our services for children and young people with complex disabilities. The updated policy reaffirms the classification of reserves into Restricted, Unrestricted – Designated, and Unrestricted – General (free reserves), and sets out a strengthened framework for assessing financial risks and ensuring appropriate resilience. In doing so, the Trustees considered the organisation’s income profile, our reliance on local authority funding, operating cost pressures, and the need for flexibility in responding to unexpected events.

Following this review, the Trustees agreed a revised free reserves target range of £4m to £5m, informed by a structured assessment of financial risks, including potential disruption to income from major commissioners, working-capital requirements equivalent to two months of expenditure, and the need to retain financial capacity for emergency capital investment. This level is broadly comparable with similar organisations in our sector and reflects the Trustees’ desire to balance prudent risk management with the effective use of funds for current beneficiaries. Designated reserves continue to be used to support planned strategic initiatives, including investment in capital assets and technology improvements.

The Trustees have decided to designate reserves totalling £0.86m. This mainly relates to the purchase of the freehold of the site and a replacement roof on the hydrotherapy pool.

At 31 August 2025, the Foundation’s unrestricted free reserves totalled £5.5m, a position above the upper end of the Trustees’ agreed target range. This temporary increase was driven by the receipt of a substantial unrestricted legacy of £0.4m late in the financial year. The Trustees consider this timing-related variance to be appropriate and consistent with the overall intent of the policy, and they remain satisfied that reserves are being managed prudently. Based on the Foundation’s planned capital investments, it is expected that free reserves will return to within the target range within the next two financial years.

Investment Policy and Performance

Funds expected to be required in the short term are typically placed with banks in the money markets through prime financial institutions.

Longer-term funds are invested and managed on a discretionary basis by Rathbones within long-term return objectives and clearly defined risk parameters set by the Trustees’ Finance, Audit & Risk Committee. The investment portfolio includes equities, fixed interest securities, and property and other managed funds. The primary aim is to strengthen the financial resilience of the Foundation and to generate resources to support its longer-term development. The performance of the investment manager, the investment parameters, and any potential needs for drawdown are all regularly reviewed by the Finance, Audit and Risk Committee. The investment portfolio valuation increased by £79k (net) this year (2024: Gain of £318k).

Principal risks and uncertainties

Risk management processes

The Board of Trustees has oversight of the risks faced by the Charity and is responsible for ensuring that effective and adequate risk management and internal control systems are in place.

A robust risk management process focuses on risks that could impact on current service delivery and the Charity’s future development. There is an active risk management process at both Trustee Board and Governing Board with risk management as a standing item on the agenda for all Board and sub-committee meetings. The level of risk and changes in likelihood and impact are tracked closely together with the effectiveness of risk mitigation measures.

The register is updated termly to reflect any new or changing risks. Trustees review the summary of top risks at each main Board meeting.

Services and central teams own their own operational risks and dynamic risk assessment is part of day-today business as usual processes, with escalation to the Executive Leadership Team and Governors as necessary.

Risk Profile

Chailey Heritage Foundation manages a high level of operational risk every day because of the complexity and high health needs of the children and young people we support. We operate in a highly regulated sector, and dedicate considerable governance, leadership and management time to monitor risk and the effectiveness of our controls framework. The main risk areas in 202425 have been:

Key Controls & Mitigation

Risk

• A failure to adequately safeguard • Robust internal processes for reporting, recording and learning from results in harm to a child or young safeguarding events. person in our care. • Good relationships and open communication with East Sussex officers in Children’s and Adult services.

• • Strong governance oversight of safeguarding including a dedicated committee. • A strong emphasis on core training, systems and reporting mechanism to ensure safeguarding concerns are quickly and consistently identified and escalated to a team of safeguarding leads.

• Regulatory compliance and • Currently all CQC and Ofsted regulated services are rated as ‘Good’ or performance falls below ‘Outstanding’. ‘Good’ leading to a withdrawal • Strong governance oversight of the regulated school and social care services of children and young people. within a dedicated committee structure. • Quality function to develop, embed and ensure quality standards. • Robust leadership and management systems and processes focussing on a learning culture, quality and service improvement.

• A data protection or cyber • Digital investment programme including upgraded firewall, systems renewal security incident interrupts and adoption of cloud-based systems. service and results in fines • Cyber-attack scenario testing. or reputational damage. • Training and awareness raising for colleagues and volunteers and adoption of NHS Data Security Protection Toolkit (NHS DSPT).

• Economic conditions remain • Prudent, risk-based prioritisation of expenditure. difficult impacting income and • Maintaining a suite of effective financial controls and monitoring including operating costs. in-year reforecasting, spend analysis and reserves position. • Strong fundraising offer and increasing focus on income diversification.

• Relationships with Local • Chailey Heritage School continues to be ‘Outstanding’ and capable of Authorities coupled with increasing meeting the complex health needs of pupils. competition results in falling pupil • Multi-disciplinary NHS, education and care teams operate a nationally numbers and an unviable school. recognised centre of excellence that freely shares professional practice across the sector.

• • A continuing focus on accepting referrals for children whose needs cannot be met in other settings.

• • Plans to increase residential capacity to enable national catchment, reducing the reliance on local demand.

• Failure to maintain a safe, compliant, • Governance structure in place to provide robust oversight. and accessible environment could • Statutory compliance is overseen by the Finance, Audit and Risk Committee. harm service delivery, risk falling • Regular external scrutiny, audits and inspections provide assurances around below a ‘Good’ rating, and result in compliance, for example Fire Safety. reputational, organisational, and • Planned preventative maintenance schedules are in place to ensure financial impacts. compliance. Colleague or volunteer conduct, • Rigorous recruitment, screening and background checks, including attitude and/or behaviour results DBS clearances. in reputational damage. • Use of structured interviews to ensure candidates alignment with organisational values.

• • Comprehensive training and induction programmes.

Local authority insolvency result • Fair Pricing Charter Introduced Plan to review fee structure and strengthen in the commissioning of statutory ties with key commissioners. services only, or the justification • Focus on income diversification e.g. moving to national catchment. for fee reductions (reported £5bn deficit across all LAs).

• Failure to improve employee • Development of a new workforce strategy and implementation plan engagement and grow our covering the employee journey. Phase 1 to focus on recruitment, pay, reward workforce hampers organisational and recognition. effectiveness. • Strong governance oversight from a dedicated People & Culture Committee.

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Financial Review

Our capacity to expand our reach and maximise impact is closely tied to growing our frontline workforce. Addressing this critical need, we have prioritised investment in a new workforce strategy designed to attract, retain, and support the skilled colleagues required to deliver exceptional care and education.

Outlook

Despite the ongoing challenging economic conditions, constrained labour market, and continuing pressures on local authority budgets, Chailey Heritage Foundation’s performance in 2024-25 was robust. We achieved an operating surplus, enabling essential future investments in our site infrastructure and services. However, this was in large part due to significant legacies in year without which the Foundation would have been in a deficit position. Demand for our services continues to be strong, complemented by steady fundraising performance and income from other sources.

Despite ongoing workforce challenges, the Foundation continues to provide a safe, high-quality, and impactful service to the children and young people who rely on our support. This reflects our commitment to maintaining the highest standards while adapting to an ever-changing environment.

Environment, social and governance

Chailey Heritage Foundation is a registered Charity (number 1075837) and also registered in England as a Company limited by Guarantee (number 3769775).

live locally. We are immensely proud of being able to offer our charitably funded specialist services such as Aquamovers, Hippotherapy and our wonderful hydrotherapy pool to disabled children from the local community. The Dream Centre has also enabled more people living locally to benefit from the Charity’s very specialist facilities.

Our Charitable Objects

The objects of the Charity are, for the public benefit, the education and care of people who have physical disabilities and other complex health needs, particularly but not exclusively children and young persons (the beneficiaries) including the conduct and maintenance of a special school (the School) within the meaning of the Education Acts and of a transition service for beneficiaries.

Another aspect of the Charity’s public benefit is our work in partnership with other charities, helping the most disabled children and their families.

Governing documents

The company, established in 1999, is governed by its Memorandum and Articles of Association. With the consent of the Charity Commission, the Charity changed its name from Chailey Heritage School to Chailey Heritage Foundation with effect from September 2012 to reflect the wider range of provision now offered.

The Trustees do not expect services for those over 25 years of age to make up more than 10% of our charitable income.

Demonstrating Public Benefit

The Scheme of Delegation was superseded by the Schedule of Authority in December 2024. It establishes a comprehensive and transparent framework for decision-making, delegation, and accountability across Chailey Heritage Foundation, clearly defining roles, responsibilities, and approval thresholds for key operational, financial, legal, and strategic activities. Its purpose is to standardise and strengthen governance, ensure compliance with organisational and regulatory requirements, and support effective and efficient management by setting out who can make which decisions and at what level.

In shaping our objectives and planning our activities, the Trustees have considered the Charity Commission’s guidance on public benefit, including the guidance ‘public benefit: running a Charity (PB2)’. In particular, charities which charge fees for services must demonstrate that those services are accessible to the general public and not restricted by geography or the ability of individuals to pay.

We believe we comply fully with this requirement; our Report on Operations and Strategy includes examples of the public benefits Chailey Heritage Foundation offers and areas in which we believe we are providing innovative leadership to the sector.

The wholly owned trading subsidiary of the Charity, Chailey Heritage Trading Company Limited, was incorporated on 10 August 2016 and is registered in England and Wales (company registration number 10323844). It has been inactive since incorporation.

The Trustees are committed through their strategic plan to increasingly share our specialist facilities with young people who have complex disabilities and

Boards

Following a review of its governance model in 2024, the Trustees implemented a more streamlined committee structure. The Trustees meet as a full Board at least three times a year. In the new governance structure, the principal joint Trustee and Governors sub-committees are Safeguarding & Quality Standards, Finance Audit & Risk, Development and People & Culture.

Since incorporation, the Charity has been managed by a Board of Trustees which has overall control of the Charity, its property, and funds. The Trustee Board is supported by a Board of Governors, which has a distinct and separate identity from that of the Trustees and is responsible for securing the effective and efficient operation and management of all services including the School, Chailey Heritage Residential and Chailey Heritage Futures.

The Governing Board comprises of Trustees and others with relevant skills and also representatives of the parents, teachers, and colleagues. The full Board meets termly and also fulfils its role though its two very active sub-Committees and termly focus visits to services.

Those who served as Trustees during the year are shown on page 59.

The Trustees are recruited from a range of backgrounds and professions with the aim of providing a balanced and relevant spread of skills and experience on the Board. Trustees are appointed for an initial term of four years, with a second term of four years after that. The current Board includes depth of skills in finance, property, health, investments, and compliance, as well as direct experience of a parent of a former pupil. Trustees have been briefed on the implications of the General Data Protection Regulation and they recognise the importance of the Charity Governance Code. Several Trustees completed their terms or chose to retire during the year. Following a successful recruitment campaign, we were delighted to welcome six new Trustees to the Board in October 2025.

The responsibility for determining the general policies of the School, Chailey Heritage Residential and Chailey Heritage Futures rests with the Governing Board. The Governing Board has two principal sub-committees which all meet termly before the main Board meeting to deal with Education and Social Care business.

In addition to the Boards of Governors and Trustees, the Executive Leadership Team comprising the Chief Executive, Headteacher, and Directors of Care, People & Culture, Resources, Specialist Services & Income Generation and the Company Secretary meets weekly and monthly.

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Trustee Board
Safeguarding
People & Finance,
& Quality Governing Development
Culture Audit & Risk
Standards Board Commitee
Commitee Commitee
Commitee
Education
Committee
(Governor only)
Social Care
Committee
(Governor only)
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Financial Review

Trustee induction and training

New Trustees are briefed on their legal obligations under Charity and company law, the content of the governing documents, the committee and decisionmaking processes, the business plan and recent financial performance of the Charity.

During the induction, they meet key employees and other Trustees. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role.

As part of their ongoing training, Trustees are also given briefings on current ‘hot topics’ during the year.

Funds held as custodian

There are no arrangements where the Charity or Trustees are acting as financial custodians.

GDPR

Compliance with the General Data Protection Regulation remains a high priority here. We are continually taking steps to improve our handling of personal data and to ensure compliance. All colleagues are provided with training on the subject alongside general cyber security. The Charity has also received accreditation from the NHS Data Security and Protection Toolkit.

Report to Charity Commission

During the year, the Trustees submitted two Serious Incident Reports to Charity Commission in total. One concerned a current employee and the other incident involving fraud against one of our donors.

Safeguarding

The children and young people we care for are especially vulnerable due to their complex needs. Disabled children are more than three times likely to be abused than non-disabled. All our colleagues and volunteers are DBS checked and they are all committed to safeguarding and undergo extensive safeguarding training with specifics regarding disability.

Safeguarding policies are reviewed and updated annually and there is annual safeguarding update training, to ensure that all colleagues are up to date with changes in national guidance for adults as well as children and in Foundation policies and procedures. Governors and Trustees also receive annual updates.

Everyone in the organisation who is involved with the recruitment of colleagues follows safer recruitment guidelines and senior colleagues have attended Safer Recruitment Training. The Safeguarding Governor scrutinises the single central register at least three times a year and conducts spot check recruitment processes and training for newly appointed colleagues.

The Headteacher is the Foundation lead for Safeguarding and works with a team of trained Designated Safeguarding Officers (DSLs) who are the first point of contact with for any safeguarding issues. Progress on current safeguarding incidents is reviewed weekly by the Chief Executive (also a trained DSL), Headteacher and Director of Care.

Governors and Trustees take their safeguarding responsibilities very seriously and ensure that they are up to date with latest development through training and detailed reports. Governors check colleagues understanding of safeguarding processes on their focus visits to services.

Oversight is detailed and rigorous and both Governor and Trustee Boards have members with safeguarding experience at senior level. The joint Trustees’ and Governors’ Safeguarding & Quality Standards Committee meets three times a year. It is chaired by the Lead Safeguarding Governor who reports to Governors and Trustees three times a year.

The Safeguarding Governor is informed of serious safeguarding incidents and meets at least once a term with the Foundation Safeguarding Lead and DSLs to review the management of incidents identify trends or matters of concern and discuss any recommendations from lessons learned.

The outcomes of the Annual East Sussex Safeguarding Self-Assessment are reported to Governors and Trustees each year. Trustees have an opportunity to question the Safeguarding Governor and Foundation Safeguarding lead when they present their annual report in the autumn.

Remuneration policy

The Foundation is committed to ensuring that we pay our colleagues fairly and competitively to attract the skills needed to deliver and support our services. The People & Culture Committee considers the employment and remuneration policies including pay policy, pensions, and benefits each year. In setting pay at all levels, Governors and Trustees consider:

• the nature of the role and responsibilities based on the job evaluation.

• salaries in the relevant sector.

• benchmarking against regional competitors.

• public sectors pay awards and the recommendations of the relevant pay bodies such as the School Teachers’ Review Body.

• the Living Wage.

• For 2025-26, our colleagues were awarded a 3% across-the-board salary increase.

No Trustee or Governor is remunerated.

Chailey Heritage Foundation is confident that our gender pay gap does not arise from unequal pay for men and women performing the same or equivalent work. We ensure that pay awards, salary benchmarking, and other compensation-related practices are conducted fairly and without bias, regardless of gender. The gender pay gap is more reflective of the distribution of roles within our organisation, alongside the salaries and working patterns linked to these roles.

Equal opportunities

As an organisation, Chailey Heritage Foundation is committed to promoting diversity and inclusion for all its young people and colleagues. It is embodied within our values. We welcome applications for employment from all sections of the community. We believe in appointing the best candidate into our roles and have a clear policy of paying employees equally for the same or equivalent work, regardless of their gender or other factors covered by the Equality Act 2010. As such, we carry out pay and benefits reviews at regular intervals and evaluate job roles and pay grades as necessary to ensure a fair structure.

While the sector’s structural dynamics pose ongoing challenges in closing the gender pay gap, we are fully committed to addressing this issue. Our focus remains on implementing robust attraction strategies and creating an inclusive, equitable, and empowering workplace for all.

Gender pay gap

We’re committed to promoting equality and inclusion in all aspects of our work. As of April 2025, our mean gender pay gap stands at 17%, a decrease from the previous year, reflecting progress in addressing pay disparities.

The full report can be found here .

The following chart shows our Mean and Median data over the past three reporting years:

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05-Apr-23 05-Apr-24 05-Apr-25
Gross
Hourly
Male Female Difference Male Female Difference Male Female Difference
rate of
pay
Mean £16.64 £13.58 22.5% £17.75 £14.61 17.7% £18.65 £15.48 17.0%
Median £12.47 £12.47 0% £13.86 £13.12 5.3% £14.43 £13.33 7.7%
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Financial Review

Trustees’ duty to promote the success of the charity (Section 172 statement)

The Board of Trustees are aware of their duty under s.172 of the Companies Act 2006 to act in the way which they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole and, in doing so, to have regard (amongst other matters) to:

• the likely consequences of any decision in the long term.

• the interests of the Company’s employees.

• • the need to foster the Company’s business. relationships with suppliers, customers, and others.

• the impact of the Company’s operations on the community and the environment.

• the desirability of the Company maintaining a reputation for high standards of business conduct.

• the need to act fairly as between members of the Company, (the “s.172(1) Matters”).

Chailey Heritage Foundation strives to be an inclusive community where everyone belongs, is accepted and matters. Its values of ‘Belonging, ‘Commitment’, ‘Ambition’ and ‘Celebration’ (as set out on page 6) underpin decision making at all levels and engagement with all our stakeholders.

The children and young people in our care are at the heart of all the Charity does, and their interests are fundamental to Trustees’ decisions.

Decision making for the long term

Strategic planning is a collaborative process between Trustees, Governors, the executive team and through them, colleagues, and volunteers. Our five-year strategy was launched in January 2025.

Further information on our strategic priorities and how these have been delivered together with our plans for the future can be found on pages 10 to 29.

The interests of employees

Trustees recognise the commitment and dedication of the Foundation’s colleagues and appreciate the pressures of working with highly vulnerable young people and the clinical skills this requires. The wellbeing of colleagues continues to be a high priority and a number of new employee benefits are being introduced in September 2025, including a basic level healthcare cash plan.

Trustees continue to promote our employee assistance programme.

Trustees aim for the charity to be a fully inclusive community where everyone can be their authentic selves and there is equity for everyone to pursue their potential. They recognise that there is some way to go but have made it a strategic priority and part of our People Plan.

Further information on how we promote the interests of our colleagues can be found in “A great place to work” on page 24.

Impact on the community and the environment

Community

The Charity has been part of Chailey community for over 120 years, and it is now one of the largest employers in the area. It also has strong links to local companies and philanthropists who support the Charity in many ways.

We continue to run our popular Aquamovers provision which started in 2015 and benefits pre-school children and their parents/guardians.

Our hydrotherapy pool is still used by outside clubs and groups e.g. Puddleducks and Waterbabies.

The indoor learning space extension at Patchwork Farm, known as The Bradbury Den, commenced construction in September 2025 and is scheduled to be completed and operational by April 2026.

One of our new strategic priorities is to involve the community in helping us to grow by increasing their support through fundraising, volunteering and growing our commercial income by letting out our specialist facilities.

Environment

In developing its long-term strategic plan, the Trustees reaffirmed their commitment to embedding environmental sustainability across all aspects of the Charity’s operations, recognising that achieving netzero will require sustained, realistic progress over the coming decades. As set out in our Site Development Plan, environmental sustainability is one of our three core Site Development Priorities, and during 2024/25 we initiated work on a comprehensive Sustainability Strategy that will include a clear pathway to reach net-zero by 2050. While some clinical requirements, such as the essential use of medical consumables, mean that a zero-carbon position is not immediately attainable, the Trustees remain committed to reducing the Charity’s carbon footprint wherever possible and to offsetting where appropriate.

This year’s estate developments have continued to incorporate sustainability measures, including

the integration of Solar PV panels into major roof projects, such as the forthcoming Aquatics Centre roof repair, alongside the design of new facilities such as The Bradbury Den , which embeds energy-efficient and low-carbon principles. As we move forward, environmental considerations will increasingly shape our operational plans, capital investments, and selection of suppliers, ensuring that sustainability becomes a golden thread running through the Charity’s decision-making for many years to come.

Our Streamlined Energy and Carbon Report can be found below.

Maintaining high standards of business conduct

Compliance and Good Practice

Chailey Heritage is committed to maintaining high standards both in the delivery of its services and its governance. Trustees ensure they are familiar with regulators’ guidance and regulatory frameworks and take on board relevant recommendations from new guidance. Policies are reviewed on a three-year cycle and updated as required to reflect changes in guidance.

The Charity supports children and adults who are particularly vulnerable because of their physical and learning disabilities and therefore safeguarding is a priority; it is the responsibility of everyone, and Trustees and Governors monitor safeguarding compliance and case management closely and expect the highest standards.

Trustees follow best practice and guidance of the Charity Commission and Fundraising Regulator when establishing policies and making decisions affecting the charity. Our commitment to donors demonstrates the high standards the Trustees expect of the Fundraising Team and the Fundraising Policy includes the right to refuse a donation where it may be considered unethical.

Governance and Management

The Charity’s operation is subject to a number of different regulators including CQC, Ofsted, the HSE, Fundraising Regulator, Information Commissioners, and the Charity Commission. The Charity aspires to the highest standards. Senior managers are responsible for ensuring regulatory compliance, that the organisation’s policies followed, and the Foundation’s values are embodied in service delivery and the conduct of its colleagues and volunteers. The Trustee Board monitors this directly and holds management to account through its sub committees, particularly the Governing Board.

We can confirm that no fundraising complaints were received during the reporting period covered by this annual report.

Further information on Structure, Governance and Management can be found on page 34.

In setting its policies and strategic direction, due consideration is given to the issues identified in Section 172. We also expect high standards from our suppliers and contractors including strict compliance with DBS requirements and sound business practice.

We operate policies to ensure the Charity secures best value and aim to build long term relationships with key suppliers. We are very grateful to those suppliers who have supported our Fundraising projects.

SECR Carbon Reporting

It is a requirement of large organisations to include energy and carbon data in their Annual Reports, under the SECR Regulations. We have reviewed the relevant activities, relating to buildings and business travel, and made the calculations, as shown below.

Our SECR carbon emissions for the financial reporting year 2024-25 amounted to 382 tCO2e , with 68% arising from gas consumption.

Absolute emissions have fallen by 9% since last year and relative emissions (compared to turnover) are down by 20%. With no green electricity purchased this reporting year, market-based emissions have fallen by 1% and 13% respectively.

Energy Efficiency Projects

Following investment in further solar panels, these came fully online this year. Thus, the electricity we produce ourselves has jumped from 0.3% of the total used to 12%. This has helped reduce our carbon emissions significantly.

Heating the water for the hydrotherapy pool uses a lot of gas; this year a project examined the backwash process which uses unheated water. By adjusting this process, it keeps the pool water a more constant temperature so requiring less top-up heating.

Additionally, we have examined room heating controls, including turning down thermostats, adjusting heating when closed and the temperature of air conditioning units. We have run a campaign to raise awareness amongst colleagues to switch off equipment overnight and at weekends.

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Financial Review

For SECR reporting, Scope 1 (Direct) emissions are those arising from natural gas heating and company vehicles. Scope 2 (Energy Indirect) emissions are from electricity. Scope 3 (Other Indirect) emissions come from grey fleet and hire vehicles.

We have decided again to purchase green electricity again, starting the new contract from September 2025.

SECR Emissions Calculations - Methodology

We have reported on all the emission sources required by Streamlined Energy and Carbon Reporting (SECR), under the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018. These sources fall within our consolidated financial statement.

Location-based emissions are calculated as the average emissions intensity of the electricity grid, while market-based emissions take into account green energy purchasing.

We have followed the methodology of ISO 14064-1 (Specification with guidance at the organisation level for quantification and reporting of greenhouse gas emissions and removals) and emission factors from UK Government GHG Conversion Factors for Company Reporting 2025.

Energy & Carbon Data

SECR Energy & Carbon Emissions (kWh & tCO2e)

----- Start of picture text -----
Unit 2024-25 2023-24 % change
Energy consumption kWh 2,155,080 2,175,356
Scope 1 - Direct Emissions tCO2e 281.5 279.7
Scope 2 - Energy Indirect Emissions - location-based tCO2e 98.0 138.1
Scope 2 - Energy Indirect Emissions - market-based tCO2e 98.0 103.0
Scope 3 - Other Indirect Emissions tCO2e 2.8 1.6
Total SECR Emissions - location-based tCO2e 382.3 419.4 -9%
Relative SECR Emissions - location-based tCO2e/£m 20.0 25.1 -20%
Taking into account green energy purchased
Total SECR Emissions - market-based tCO2e 382.3 384.3 -1%
Relative SECR Emissions - market-based tCO2e/£m 20.0 23.0 -13%
----- End of picture text -----

Auditors

Our attached financial statements have been audited by Crowe U.K. LLP who were appointed in 2025 following an audit tender process (carried out in 2024). Their report thereon and on other matters they have to consider, that follows on pages 42 to 44 in the long form that Auditing Standards now require, is an unqualified opinion and report without exception.

Statement of Trustees’ responsibilities

Statement of Trustees’ responsibilities

Statement as to disclosure of information to the auditor

The Trustees (who are also directors of Chailey Heritage Foundation for the purposes of company law) are responsible for preparing the Trustees’ 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’.

The Trustees who were in office on the date of approval of these financial statements, having made reasonable enquiry, have collectively confirmed that, as far as they are aware, there is no relevant audit information undisclosed to the company’s auditor and that they have taken the steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor.

Company law requires Trustees to prepare financial statements for each financial year which 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 the income and expenditure, of the charitable company for that period. In preparing the financial statements, the Trustees are required to:

The Trustees’ Annual Report is approved by the Trustees of the Charity. The Strategic Report, which forms part of the Annual Report, is approved by the Trustees in their capacity as Directors of the Charity under company law and is signed on its behalf by:

• select suitable accounting policies and then apply them consistently.

• observe the methods and principles in the Charities SORP.

• make judgements and estimates that are reasonable and prudent.

Mark Creamer

Trustee

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

Denise Garland Trustee

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and to 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 taking reasonable steps for the prevention and detection of fraud and other irregularities.

Date: 18 December 2025

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

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Statement of Trustees’ responsibilities

Independent Auditor’s Report to the Members of Chailey Heritage Foundation

significant doubt on the 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.

Opinion

We have audited the financial statements of Chailey Heritage Foundation (‘the charitable company’) for the year ended 31 August 2025 which comprise the Statement of Financial Activities, Balance Sheet and Statement of Cash Flows 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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 contained within the annual report. 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 our opinion the financial statements:

• give a true and fair view of the state of the charitable company’s affairs as at 31 August 2025 and of its income and expenditure, for the 31 August 2025 then ended;

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 this gives rise to 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.

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

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 the financial statements section of our report. We are independent of the 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.

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 our audit

• the information given in the trustees’ report, which includes the directors’ report and the strategic report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and

Conclusions relating to going concern

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

• the strategic report and the directors’ report included within the trustees’ report have been prepared in accordance with applicable legal requirements.

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

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the trustees’ report.

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

• adequate and proper accounting records have not been kept; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of trustees’ remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 41, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the 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 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 trustees either intend to liquidate the 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 the aggregate,

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

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org. uk/auditorsresponsibilities . This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of noncompliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, including financial reporting legislation and the Charity SORP (FRS 102), and local tax regulations. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be necessary to the charitable company’s ability to operate or to avoid a material penalty. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We also considered the opportunities and incentives that may exist within the charitable company for fraud. We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of legacy and grant income, capital projects and management override of controls. Our audit procedures to respond

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Independent Auditor’s Report

to these risks included enquiries of management and the Finance, Audit and Risk Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.

In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

Use of our report

This report is made solely to the charitable 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 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 the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Jayne Rowe

Senior Statutory Auditor

For and on behalf of Crowe U.K. LLP

Statutory Auditor London

Date: 19th December 2025

Statement of Financial Activities For the Year Ended 31st August 2025

(Including income and expenditure account )

Notes INCOME FROM: Donations, legacies and grants 3 Charitable activities: Fees 4 Ancillary income Investments 5 Other Total income EXPENDITURE ON: Raising funds: Financing costs 6 Fundraising costs 6 Charitable activities: Operating costs 7 Use of Donations and Appeal Total expenditure Net (expenditure) / income 8 before investment gains Net gains on investments 13 Net Income/(Expenditure) Gross transfers between funds 19 Net movement in funds Total funds brought forward Total funds carried forward	Unrestricted Funds Restricted 2025 2024 General Designated Funds Total Total £’000s £’000s £’000s £’000s £’000s 1,005 - 756 1,761 1,721 16,232 - - 16,232 15,842 144 - - 144 183 144 - - 144 173 92 - - 92 42
	17,617 - 756 18,373 17,961 18 - - 18 16 184 - - 184 196
	202 - - 202 212 17,378 36 - 17,414 16,470 54 - 302 356 413
	17,432 36 302 17,770 16,883
	17,634 36 302 17,972 17,095
	(17) (36) 454 401 866
	79 - - 79 318
	62 (36) 454 480 1,184
	268 273 (541) - -
	330 237 (87) 480 1,184 17,824 622 512 18,958 17,774
	18,154 859 425 19,438 18,958

The charity has no recognised gains or losses for the year other than as detailed above. The net movements in the Charity’s funds for the year arise from the Charity’s continuing activities.

The notes on pages 48 to 58 form part of these accounts.

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Financial Statements including notes

Statement of Cash Flows For the Year Ended 31st August 2025

Balance Sheet As at 31st August 2025

Notes FIXED ASSETS Tangible assets 12 Investments 13 CURRENT ASSETS Debtors 14 Cash at bank and in hand 15 Total Current Assets LIABILITIES Creditors : Amounts falling due within one year 16 NET CURRENT ASSETS Creditors : Amounts falling due after one year TOTAL NET ASSETS ACCUMULATED FUNDS 18,19 Restricted funds Other Unrestricted funds Designated funds General fund : free reserves TOTAL FUNDS General fund : invested in tangible fxed assets Invested in tangible fxed assets	2025 £’000s 12,697 4,605	2024 £’000s 12,753 4,427
	17,302	17,180
	5,075 1,941	3,116 1,777
	7,016 (4,880)	4,893 (3,115)
	2,136	1,778
	-	-
	19,438	18,958
	- 425	- 512
	425	512
	859 12,697 5,457	622 12,753 5,071
	19,013	18,446
	19,438	18,958

issue on 18 December 2025 and signed on their behalf by

M. Creamer D. Garland Trustee Trustee

Net cash provided by operating activities (below) Dividends, interest and rents from investments Purchase of property, plant and equipment Proceeds from sale of investments Purchase of investments Net cash used in investing activities	2025 2024 £’000s £’000s 995 1,188
	144 (876) 10 (109) 173 (494) 13 (147)
	(831) (455)

Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period Net income Adjustments for Depreciation charges Net (gains) on investments Investment income (Increase)/Decrease in debtors Increase/(Decrease) in creditors Net cash provided by operating activities Reconciliation of net income to net cash fow from operating activities Loss on disposal of fxed assets	164	733
	1,777	1,044
	1,941	1,777
	2025 £’000s 480 857 75 (79) (144) (1,959) 1,765 2024 £’000s 1,184 1,064 116 (318) (173) 41 (726)
	995 1,188

Company No: 3769775

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Financial Statements including notes

Accounting Policies and Notes to the financial statements For the Year Ended 31st August 2025

future. The charitable company therefore continues to adopt the going concern basis in preparing its financial statements.

1. Legal status of the Charity

The charity is a company limited by guarantee and has no share capital. The members of the Charity are the Trustees listed on page 59. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity.

c) Subsidiary company

These financial statements reflect the results and financial position of the Charity only, and not its wholly owned trading subsidiary, Chailey Heritage Trading Company Limited, which was incorporated on 10 August 2016 and is registered in England and Wales (company registration number 10323844). The subsidiary was inactive for the financial year ended 31st August 2025, as in the previous year.

2. Accounting policies

a) Basis of Preparation

The financial statements are prepared on a going concern basis, under the historical cost convention, as modified by investments being measured at fair value through income and expenditure within the Statement of Financial Activities.

d) Income

All income is recognised when there is entitlement to the funds, the receipt is probable and the amount can be measured reliably.

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The charitable company is a public benefit entity for the purposes of FRS102 and has 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.

Donations are accounted for when the amounts are received or are measurable and certain at the date of the accounts. Donations in kind are accounted for when the benefit is measurable and supported by third party verification.

Legacies are recognised following probate and once there is sufficient evidence that receipt is probable and the amount of the legacy receivable can be measured reliably. Where entitlement to a legacy exists but there is uncertainty as to its receipt or the amount receivable, details are disclosed as a contingent asset until the criteria for income recognition are met.

The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest one thousand pounds.

Grants receivable are accounted for over the period to which they relate. Government grants comprise amounts received during the year adjusted for income which relates to future periods. Such deferred income relating to grants is included in deferred income in creditors.

b) Going concern

The Trustees have assessed whether the use of going concern is appropriate and the current economic climate on the ability of the charitable company to continue as a going concern.

Tax recoverable under Gift Aid is accounted for when it is received.

The Trustees have made this assessment for a period of at least one year from the date of the approval of these financial statements. In particular, the Trustees have considered the charitable company’s forecasts and projections in the light of the current economic climate continuing throughout 2025/26 in some form or other and the subsequent pressures on fee income and costs.

Donations, legacies and grants are only treated as Restricted if they are subject to specific wishes of the donors.

Investment income is accounted for on an accruals basis.

e) Expenditure

After making enquiries, the Trustees have concluded that there is a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable

Liabilities are recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of

economic benefits will be required in settlement, and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis.

Irrecoverable Vat is included with the item of expense to which it relates.

f) Tangible Fixed Assets and Depreciation

Fixed assets are stated at cost less appropriate depreciation. Items costing less than £2,500 are not capitalised unless they form part of a larger capital project costing more than £2,500.

Depreciation of tangible fixed assets is calculated to write off their cost less any residual value over their estimated useful lives:

estimated useful lives:
Leasehold property and improvements	2-4%, 10% or 25% dependingon the asset life
Motor vehicles, furniture and equipment	25% per annum on cost
Computer equipment and software	25% per annum on cost
Hoists / longer life equipment	10% per annum on cost

Depreciation starts in the month of purchase or month first used whichever is the later.

Fixed assets acquired with restricted funds are treated as Restricted Fixed Assets in the accounting year in which they are purchased or brought into use, if later. When fully operational these assets are reclassified as Unrestricted, unless the donor specifically requests they remain as Restricted or the Appeal Fund which funded them remains open.

g) Investments

Investments are initially recorded at cost and subsequently measured at fair value at each reporting date. Fair value is based on their quoted price (inclusive of accrued income) at the balance sheet date without deduction of the estimated future selling costs.

Changes in fair value and gains and losses arising on the disposal of investments are credited or charged to the income or expenditure section of the Statement of Financial Activities as ‘gains or losses on investments’ and are allocated to the appropriate fund holding or disposing of the relevant investment.

h) Pension costs and other post-retirement

benefits

The Foundation operates with two different pension schemes as described in note 10.

• (1) Teachers are members of the Teachers Pension Scheme.

• (2) A defined contribution scheme for employees whereby the assets of the scheme are held separately in an independently administered fund.

Contributions to all schemes are charged in the Statement of Financial Activities as they fall due.

i) Fund Accounting

Restricted funds are funds for specific purposes imposed by the donor or by the terms or nature of the appeal under which the funds were raised. The restrictions are binding upon the Trustees of the Charity.

Unrestricted Funds are analysed between (a) General funds available to the Charity for its general purposes, including past funds deployed in tangible fixed assets; and (b) Designated funds, formally earmarked by the trustees at their discretion for specific spending.

j) Operating leases

Rentals paid under operating leases are charged to expenditure as incurred.

k) Taxation

The Charity is a registered charity, and as such is entitled to certain tax exemptions on income and profits from investments, and on surpluses of any trading activities carried on in furtherance of the Charity’s primary objects. The Charity’s non-primary trading activities are also tax exempt as below the current taxable threshold.

The Charity became VAT registered from 1 January 2025.

l) Other financial instruments

i) Cash and cash equivalents

Cash and cash equivalents include cash at banks and in hand and short term deposits with a maturity date of 95 days or less.

ii) Debtors and creditors

Debtors and creditors receivable or payable within one year of the reporting date are carried at their present value, which due to the short term nature of the balances is the transaction price.

m) 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. In the view of the trustees, no judgements were required that have a significant effect on amounts recognised in the financial statements, nor do any estimates or assumptions made carry significant risk of material adjustment in the next financial year.

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Financial Statements including notes

3. Donations, legacies and grants

Year to 31 August 2025

Donations Legacies Grants	General Designated Restricted 2025 Funds Funds Funds Total £’000s £’000s £’000s £’000s 249 - 388 637 756 - - 756 - - 368 368
	1,005 - 756 1,761

Year to 31 August 2024

Donations Legacies Grants	Designated Funds General Restricted 2024 Funds Funds Total £’000s £’000s £’000s £’000s 152 - 707 859 653 - - 653 - - 209 209
	805 - 916 1,721

Government grants received relate to teachers pay and maintenance of the School grants.

4. Income from Charitable activities

2025	2024
£’000s	£’000s

Education fees Social Care fees Ancillary income	5,686 10,546	5,430 10,412
	16,232	15,842
	144	183

A very high proportion of our fees come from Local Authorities and Clinical Commissioning Groups.

Ancillary income is mainly from the provision of riding and swimming outside school hours and Café income.

Acting as agent:

The Charity received £825K (2024: £729K) and paid £733k (2024: £772K) in respect of funds held as agent. At the year end, £245K (2024: £153K) was held on behalf of third parties and is included in Note 16 Creditors - Due within one year.

During the year the Charity acted as agent in relation to income received from Local Authorities and Clinical Commissioning Groups. The charity has no discretion over the use of these funds, and they are excluded from the Statement of Financial Activities.

6. Cost of raising funds and financing costs

5. Investment income

All costs of raising funds and financing costs in the current and comparative year are charges to unrestricted funds.

All income in the current and comparative year relates to unrestricted funds.

7. Analysis of charitable expenditure

Year to 31 August 2025

Charitable Activities School Social Care Other charitable activities r to 31 August 2024 Charitable Activities School Social Care Other charitable activities	Direct Other Direct Support Total costs costs costs Depreciation 2025 £'000s £’000s £’000s £’000s £’000s 4,326 145 1,600 214 6,285 6,698 471 2,721 374 10,264 385 145 66 269 865
	11,409 761 4,387 857 17,414
	Direct Other Direct Support Total costs costs costs Depreciation 2024 £'000s £’000s £’000s £’000s £’000s 3,816 123 1,407 274 5,620 6,688 570 2,390 506 10,154 239 115 58 284 696
	10,743 808 3,855 1,064 16,470

Year to 31 August 2024

Year to 31 August 2025

Analysis and Allocation of support costs IT costs Maintenance Insurance HR costs Utilities Professional fees Other	Total School Social Care Other 2025 £’000s £’000s £’000s £’000s 689 1,172 28 1,889 198 337 8 543 127 216 5 348 38 65 2 105 48 82 2 132 245 415 10 670 21 36 1 58 234 398 10 642
	1,600 2,721 66 4,387

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Financial Statements including notes

Year to 31 August 2024

ar to 31 August 2024
Analysis and Allocation of support costs IT costs Maintenance Insurance HR costs Utilities Professional fees Other	Total School Social Care Other 2024 £’000s £’000s £’000s £’000s 552 935 22 1,509 192 326 8 526 148 250 6 404 34 58 1 93 74 126 3 203 230 392 9 631 12 21 1 34 166 282 7 455
	1,408 2,390 57 3,855

Support costs have been allocated to Operating areas on the following bases: Depreciation - usage of related assets.

Support costs include governance costs of £33k (2024: £28k).

9. Employment costs (cont.)

Average number of full-time equivalent employees by area: School Social Care Support Fundraising Other Emoluments of Highest Paid Employees £60k-70k £70k-80k £80k-90k £90k-100k £100k-110k £110k-120k £120k-£130k	2025 2024 118 151 50 5 4 114 148 40 6 4
	328 312
	Number of Employees 2025 2024 5 1 0 3 0 0 4 1 2 0 0 0 1 1

Pension contributions for highest paid employees were £105k (2024: £55k).

8. Net operating income/(expenditure)

Auditors' remuneration	2025 2024 £’000s £’000s 33 857 28 1,064

9. Employment costs

Wages and salaries Social security costs Pension contributions (see note 10)	2025 2024 £’000s £’000s 11,840 1,080 778 11,044 891 655
	13,698 12,590

Agency costs of £440K (2024: £596k) are included in the above.

The average number of employees in the year was 442 (328 full time equivalent) (2024: 417 (312 full-time equivalent)).

across our services.

Following the McCloud judgement, the remedy proposed that when benefits become payable, eligible members can select to receive them from either the reformed or legacy schemes for the period 1 April 2015 to 31 March 2022. The actuaries have assumed that members are likely to choose the option that provides them with the greater benefits, and in preparing the 2020 valuation has valued the ‘greater value’ benefits for groups of relevant members.

10. Pension and similar obligations

1. Teachers’ Pension Scheme (TPS)

The School participates in the Teachers’ Pension Scheme (England and Wales) (the TPS) for its teaching staff. The pension charge for the year included contributions payable to TPS of £282,057 (2024: £163,086) and at the year-end £36,665 (2024: £28,310) was accrued in respect of contributions to this scheme.

The TPS is a multi-employer defined benefits pension scheme governed by The Teachers’ Pensions Regulations 2010 (as amended), the Teachers Pension Scheme Regulations 2014 (as amended) and The Teachers Pension Scheme (Amendment) Regulations 2025. 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 for the TPS is 28.6% and employers are also required to pay a scheme administration levy of 0.08% giving the a total employer contribution rate of 28.68%.

The average number of employees in the scheme is 19 (2024 : 19).

2. Chailey Heritage School Group Personal Pension Plan

The Charity’s current main scheme is a Group Personal Pension plan (GPPP) with Aviva, who hold the assets of the GPPP. This is a defined contribution scheme and as such the Foundation’s responsibility is to pay the agreed level of contributions for eligible staff who decide to join.

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 2020 and the valuation report was published in October 2023.

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Financial Statements including notes

All new staff, except teachers (unless they have opted out of TPS), are auto-enrolled into this scheme after completion of three month’s service and having attained the age of 18 years. For the period from 1 September 2024 to 31 August 2025, the employer contribution rate was 4% (2024: 4%) for the main scheme. Employees can opt in to an enhanced scheme after six months of service, where the employer rate is 7.5% and employee contribution is 5%.

11. Trustees, Governors and Key Management Personnel

None of the Trustees, Governors or persons connected with them received any remuneration or other benefits from the Charity during the year (2024: £nil). Donations totalling £3k (2024: £2.8k) were received from related parties (Trustees and employees) during the year without conditions. No expenses were reimbursed to the Trustees or Governors during the year (2024: £nil). A transaction in the prior year which constitutes a Related Party Transaction with a Trustee is disclosed in note 24.

The average number of employees in the scheme is 379 (2024: 361).

The pension charge for the year was £482,512 (2024: £491,564).

Key management comprises the Chief Executive and other members of the Executive Leadership team. The total employee emoluments of the charity’s key management personnel were £605k (2024: £494k). The increase is due to the restructured Executive Leadership team being in post for a full year.

At the year end there were accrued contributions due of £80,136 (2024: £87,231).

12. Tangible Fixed Assets

Charge for year Disposals 31 August 2025 Net book values 31 August 2025 31 August 2024 Recategorisation of assets Additions Disposals 31 August 2025 Depreciation 1 September 2024 Recategorisation of assets Cost or valuation 1 September 2024	- - Freehold Land £’000s 18 -	47 (48) (1) 666 210 876 (145) (80) (225) Leasehold Property, Buildings and improvements Computers, Furniture, Equipment and Motor Vehicles Total £’000s £’000s £’000s 21,839 2,951 24,808	47 (48) (1) 666 210 876 (145) (80) (225) Leasehold Property, Buildings and improvements Computers, Furniture, Equipment and Motor Vehicles Total £’000s £’000s £’000s 21,839 2,951 24,808	47 (48) (1) 666 210 876 (145) (80) (225) Leasehold Property, Buildings and improvements Computers, Furniture, Equipment and Motor Vehicles Total £’000s £’000s £’000s 21,839 2,951 24,808
	18	22,407 3,033 25,458
	- - - -	661 196 857 (59) (52) (111) 9,968 2,087 12,055 204 (244) (40)
	-	10,774 1,987		12,761
	18	11,633	1,046 12,697
	18	11,871	864 12,753

13. Investments

Investments held at 1 September Funds withdrawn Net income reinvested Net unrealised and realised gains in the year Market value at 31 August Historical cost at 31 August Investments at market value consist of : Listed Investments registered in UK Cash held as part of investment portfolio	2025 2024 £’000s £’000s 4,427 (10) 109 79 3,975 (13) 147 318
	4,605 4,329 4,427 4,228
	4,605 0 4,427 1

All investments are listed apart from the £1 unlisted investment held in Chailey Heritage Trading Company Limited, a subsidiary company (note 2c).

risks inherent in operating the Charity - for example those arising from undue fluctuations in income, pupil numbers and costs - and to provide additional income to the Charity.

14. Debtors

Prepayments Accrued income Fees Sundry debtors	464 603 2025 2024 £’000s £’000s 4,007 1 340 276 2,500 0
	5,075 3,116

amount can fluctuate due to the timing of the raising of invoices. These invoices are treated as deferred income (note 17).

15. Cash at bank

Cash and deposits represent (1) working capital balances on current accounts held primarily for the day-to-day operations of the Charity and (2) amounts invested on the money market with prime institutions which are required in the short and medium term for capital projects and to maintain an adequate level of general liquidity.

The leasehold property represents the buildings on the site at Chailey which is leased fromSussex Community paid but the Charity is responsible for all maintenance of the site and buildings.

In the unlikely event that the Charity was to discontinue its activities, the property (including all investment in the site by the Charity) would revert to Sussex Community NHS Foundation Trust as lessor for no consideration.

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Financial Statements including notes

16. Creditors - Due within one year

. Creditors - Due within one year
Taxation and social security Trade creditors Other creditors Accruals Deferred income	2025 2024 £’000s £’000s 815 513 249 479 2,824 193 425 118 437 1,942
	4,880 3,115

Included within 'Other Creditors' are accrued pension contributions of £117k (2024: £116k).

18. Analysis of Net Assets by Fund (cont.)

Year to 31 August 2024 Restricted funds Unrestricted funds: Designated funds Fixed assets fund General funds : free reserves	Tangible Fixed Assets Investments Net Current Assets £’000s £’000s £’000s £’000s - - 512 - - 622 12,753 - - - 4,427 644 - - 12,753 4,427 1,778 Long Term Liabilities - - - 2024 Total £’000s 512 622 12,753 5,071 18,958

Included within ‘Deferred Income’ is Department of Education funding for Autumn Term received in August £63k (2024: £64k).

19. Analysis of Charitable Funds

Deferred income brought forward was all utilised during the current year.

17. Deferred income

Deferred income comprises Balance at 1 September Amount released to incoming resources Amount deferred in the year (note 16) Balance at 31 August	2025 2024 £’000s £’000s 1,942 (1,942) 2,824 2,758 (2,758) 1,942
	2,824 1,942

18. Analysis of Net Assets by Fund

Year to 31 August 2025 Restricted funds Unrestricted funds: Designated funds Fixed assets fund General funds : free reserves	Tangible Fixed Assets Investments Net Current Assets 2025 Total £’000s £’000s £’000s £’000s - - 425 425 - - 859 859 12,697 - - 12,697 - 4,605 852 5,457
	12,697 4,605 2,136 19,438

		Balance				Balance
		1 September	Incoming	Resources		31 August
		2024	resources	expended	Transfers	2025
	Restricted Funds	£’000s	£’000s	£’000s	£’000s	£’000s
a)	Grants	-	368	-	(328)	40
b)	Donations towards	512	388	(302)	(213)	385
	major projects
	and equipment
		512	756	(302)	(541)	425
	Total Restricted funds	512	756	(302)	(541)	425

• a. The Department of Education grants received of £328k have been spent on improvements to the school and contributed towards additional Teacher pay and pension costs as defined by Government.

• b. Hydrotherapy pool and transferred out to reflect those amounts spent to date.

	Balance				Balance
1 September		Incoming	Resources		31 August
	2024	resources	expended	Transfers	2025
Unrestricted funds	£’000s	£’000s	£’000s	£’000s	£’000s
Designated fund	622	-	(36)	273	859
Fixed asset fund	12,753	-	(932)	876	12,697
General funds : free reserves	5,071	17,617	(16,623)	(608)	5,457
Total Unrestricted funds	18,446	17,617	(17,591)	541	19,013

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Financial Statements including notes

19. Analysis of Charitable Funds (cont.)

Incoming resources above include the net unrealised and realised gains/losses on investments.

Designated Fund:

The £859K represents amounts designated in 2023 for the purchase of the freehold, and in 2025 for work on the swimming pool roof and contribution to The Bradbury Den build.

Fixed Asset Fund:

This represents the net book value of the Charity's land, buildings and equipment. Total tangible assets of £12,696k are shown in the Charity's balance sheet. They are analysed in note 12 on page 54.

additions of £71k and additions from designated funds of £106K.

General Fund:

The unrestricted general fund of £5,457k is held for the Charity's day-to-day working capital, and to meet other immediate and future investment needs in its services, buildings and equipment. It is also to ensure continuity of the Charity's services going forward, and to cover risks beyond those reasonably covered by insurance. The transfer out of £(608k) is the net impact of the transfers between the Fixed Asset Fund, the Designated Fund and the Restricted Fund.

20. Financial Commitments

The charity has 5 non-cancellable operating leases at year end 2025 (2024: 3)

< 1 year 2-5 years > 5 years	2025 2024 £’000s £’000s 45 114 0 22 86 2
	159 110

21. Capital Commitments

24. Related Party Transactions

At the balance sheet date the Charity had capital commitments totalling £nil (2024: £25k).

During the year, the Charity received a donation of £nil (2024 : £17k) from Jewell Bequest in relation to the employment of a family liaison officer. A charity in which one of the Trustees is also a trustee.

22. Legacies

As at 31 August 2025, the Charity had been notified of 4 new legacies (2024: 2) for which payment had not been received. In accordance with the Charities SORP (FRS 102), these amounts have been recognised as receivables in the financial statements, as entitlement had been established and the amounts could be measured reliably. The legacies were substantially settled during the final quarter of 2025.

25. Post Balance Sheet Event

The Trustees have entered into a contract to purchase the freehold of the charity’s principal site. At the balance sheet date, completion of the transaction had not occurred.

Completion is expected to take place shortly after the date of approval of these financial statements. The transaction represents a non-adjusting event after the reporting period.

23. Control

The charitable company is under the control of its members who are its Trustees. No one member has sufficient voting rights to control the charitable company.

Trustees, Executive & Professional Advisors

Royal Patron HRH The Duchess of Gloucester GCVO President Verena Hanbury MBE DL

Trustees and Governors

The Trustees of Chailey Heritage Foundation (who are also the directors of the company for the purposes of company law) and the Governors who served throughout the year unless otherwise stated were:

Governors

Trustees

Mark Creamer (Chair) Michael Atkinson (retired December 2024) Lucinda Baker LVO (retired September 2025) Neil Bennett

Jo Bell (appointed September 2025) Darren Chilcott

Chris Corion (appointed September 2025) Jenny Clark (Chair) Susan Duke (retired December 2025) Alison Grover

Neil Blanchard (appointed October 2025) Helen Britton (retired July 2025) Christopher Brown (appointed October 2025) Darren Chilcott Jenny Clark Denise Garland Alison Grover

Lawrence Mudford Kelly Platt (appointed June 2025) Deirdre Prower (retired October 2025) Christine Russell-Vick (appointed March 2025) Julie Tilbury Jenny Turner

Christina Hart (appointed October 2025) Andrew Hodson (retired September 2025) Charles Kimmins (retired September 2025) Jon Ota (appointed October 2025) Deirdre Prower (appointed October 2025) Joanne Taylor (appointed October 2025)

Executive Leadership Team

Chief Executive: Gareth Germer Headteacher: Richard Green

Director of Social Care: Eirian Levell Director of Resources: Mike Wilson Director of People & Culture: Joanne Peppard Director of Specialist Services & Income: Will Folkes Company Secretary: Fiona Duff

Co-opted Committee Members Andrew Hodson Julia James

Auditors

Crowe UK LLP, 55 Ludgate Hill, London, EC4M 7JW

Bankers

National Westminster Bank, 1 Muster Green, Haywards Heath, West Sussex, RH16 4AP

Solicitors

Bates Wells, 10 Queen Street Place, London, EC4R 1BE

Investment Managers

Rathbones Investment Management Limited, 8 Finsbury Circus, London, EC2M 7AZ

Registration Information

The Registered Office and principal address of the Company is at Haywards Heath Road, North Chailey, Lewes, East Sussex, BN8 4EF

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Chailey Heritage Foundation Haywards Heath Road North Chailey Lewes, East Sussex BN8 4EF

t: 01825 724444 e: [e-mail] www.chf.org.uk

ChaileyHeritageFoundation ChaileyHeritageFoundation ChaileyHeritageFdn

Registered Charity No. 1075837 and Company limited by Guarantee No. 3769775 (England)