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← David Rattray Foundation

2025-04-05-accounts

Charity Registered number 1119353

DAVID RATTRAY FOUNDATION (KNOWN AS KHULA EDUCATION) Trustees' Report and Audited Financial Statements

for the year ended

5 April 2025

DAVID RATTRAY FOUNDATION (KNOWN AS KHULA EDUCATION) Report and accounts Contents

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DAVID RATTRAY FOUNDATION (KNOWN AS KHULA EDUCATION) Legal and Administrative Information

Trustees L Bridges P Hollingum J Jinnah (appointed on 18 January 2025) M Kentridge G Klintworth H Loyd F Mererwitz Singh R Neville M O'Byrne T O'Malley R Woodhead (Chair) S Pfeil (appointed on 25 June 2024 and resigned on 25th February 2025)

Charity number 1119353

Auditors SKS Audit LLP Chartered Accountants 3 Sheen Road Richmond TW9 1AD

Bankers HSBC Bank plc The Peak 333 Vauxhall Bridge Road London SW1V 1RJ

Principal address 26 Gosfield Street London W1W 6HH

1

DAVID RATTRAY FOUNDATION (KNOWN AS KHULA EDUCATION) TRUSTEES' REPORT for the year ended 5 April 2025

The Trustees present their report and financial statements for the year ended 5 April 2025.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charities Act 2011 and ‘Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019)’.

Objectives and activities

The David Rattray Foundation, operating locally as KHULA Education, was established in 2007 ~~.~~ Honouring David Rattray's legacy, KHULA Education is deeply committed to improving the quality of education in the KwaZulu ~~-N~~ atal region of South Africa and mobilising education as a pathway to community empowerment and alleviating poverty in one of the most marginalised areas of South Africa.

Our Vision

That all children, regardless of their soci ~~o-~~ economic, cultural background or location are able to reach their potential and makea difference to their families and communities.

Our Mission

Our mission is to enable children from under ~~-s~~ erved, rural communities in South Africa to obtain a high ~~-q~~ uality education to improve their own lives and those of their communities.

Our Goals

As KHULA has expanded both its footprint and work, we have aligned our agenda to Sustainable Development Goal (SDG) 4: to enusre inclusive and equitable quality education and promote lifelong learning opportunities for all. Our primary goals are:

1 ~~.~~ Give children the chance to lift themselves out of their extremely disadvantaged background by working to improve educational facilities, standard and care for children.

2 ~~.~~ Support the development of children by ensuring that they are not just educated sufficiently to pass a set of exams, but also effectively prepared for their adult lives ~~.~~ We believe that through improving their educational attainment, each child will be in a better position to improve their own life, achieve better standards of health, secure more satisfactory employment, and contribute more meaningfully to the life of their family, village, society and country.

Our Approach

Our current area of support is in the remote uMzinyathi district of rural KwaZulu- ~~N~~ atal. Our work is in collaboration with our sister organisation, the David Rattray Foundation in South Africa, under the shared identity of KHULA Education.

Our activities span the historic battlefields of rural KwaZulu ~~-N~~ atal from Elandskraal, through Rorke's Drift to Nqutu and Isandlwana, some of the most isolated and marginalised areas in South Africa. This is a region of outstanding beauty and dramatic history, but these elements alone are no substitute for education.

In total, we support 22 under ~~-r~~ esourced, local schools to address key educational needs and achieve a measurable uplift in education levels and post ~~-~~ school employment. Through these schools our work impacts 6,500 students and more than 300 teachers ~~.~~

2

Safeguarding

Safegurarding of children in the supported schools is our highest priority. Prior to onboarding, all staff of the David Rattray Foundation in South Africa are required to obtain a Sexual Offenders Register Clearance Certificate. In addition, all staff, volunteers and partners in South Africa are required to sign a ‘Personal Commitment to Child Protection’ form. A Child Protection Policy has been implementd in all schools, and all staff have been trained accordingly, with refresher training delivered each year. Safeguarding incidents are rare and dealt with in accordance with local child protection and labour law.

We also have a qualified Educational Psycologist on the staff ~~.~~ This person is instrumental in providing support, guidance and relevant materials for teachers to support any child who may require remedial support and/or counselling. It is noteworthy that with this intervention, children who were previously considered by the schools to potentially have learning disabilities, were in fact often those who had simply struggled with the lack of individual attention in large classes. Our top ~~-~~ up teaching and remedial support has madea significant impact with such children, including the provision of smaller support classes and KHULA's dedicated remediation spaces.

Our Strategy and Programmes

KHULA Education is committed to tackling systemic rural inequality by supporting children and young people from preschool through to employment. We delive high ~~-~~ impact programmes across four interlinked areas, designed to improve outcomes at every stage of the education journey and contribute towards SDG targets 4.2, 4.3, 404 and 4.c. This financial year, KHULA supported over 6,450 students, strengthened its delivery model through plac ~~e-~~ based clusters, and expanded partnerships to amplify local and national reach ~~.~~

1 ~~.~~ Early Childhood Development

KHULA operates four registered preschools, providing bilingual, pla ~~y-~~ based education to 347 children aged 3 ~~-~~ 5 in the comminities of Rorke's Drift, Isandiwana, Amoibe and Sigubudu in uMzinyathi District, South Africa. In 2024, we opened a new preschool at Sigubudu, expanding access to an additional 91 children. The programme follows the Grow Early Learning curriculum and the Afrika Tikkun Bambanani curriculum (introducted for our Grade RR learners), preparing children for formal schooling through a strong focus on social-emotional development, foudnational literacy and numeracy, and early English exposure. Internal benchmarking shows KHULA preschoolers consistently outperform peers in primary school.

2 ~~.~~ Supplementary Teaching (Maths & English)

We work in partnership with 11 government schools, delivering targeted, i ~~n-~~ school support to over 3,450 students across Grades R ~~-1~~ 2. In 2024/25, the programme expanded to four new schools, including three primaries and one high school, reaching an additional 1,400 students ~~.~~ We provide lesson support, afte ~~r-~~ school sessions, remediation and paperless, CAPS- ~~a~~ ligned assessments via iPads. Foundation Phase Maths pass rates improved by 29%, and Grade 8 ~~-~~ 9 students improved foundational knowledge by over 20%. Our programee also supports high school students with university and scholarship applications, contribution to sustained improvements in post ~~-~~ school access. 3 ~~.~~ Educator Development KHULA supports over 300 teachers annually across 50 schools, providing continuous professional development through workshops, mentoring, co ~~-~~ planning and WhatsApp ~~-b~~ ased communities of practice. In 2024, we delivered 30+ Department of Basic Education ~~-~~ endorsed Maths and English workshops and expanded our mentorship model to include peer support ~~.~~ The KHULA Teaching Fellowship continues to growa local pipeline of young educators teaching in their home communities, contributing to retention and improved student outcomes ~~.~~ This work supports SDG 4 ~~.~~ c by strenghtening the local teaching workforce and reducing reliance on shor ~~t-~~ tem external interventions ~~.~~

3

4 Skills & Employment

KHULA provides out ~~-~~ o ~~f-~~ school youth with practical training and pathways into employment. In 2024/25, we opened two fully equipped Skills Hubs and trained 643 young people in areas such as digital literarcy, job readiness, hospitality, and entrepreneurship. KHULA is a Cisco ~~-a~~ ccredited training partner, with 63 students completing techinical courses in networking, data security, or cybersecurity. Since programme inception, over 1,000 youth have been trained, with 200 supported into employment, including 80 placed in local jobs. Additional support is provided for 22 firs ~~t~~ -generation university students, with full mentorship and financial guidance. The programme continues to build long ~~-~~ term economic resilience in a region where youth unemployment exceeds 80%.

Our guiding principles

Across all of our areas of work, we put into practice the unique success factors that form our model of impact. These are:

1. Invest in the whole educational journey

Education is not a phase, but a lifelong pursuit. We don't narrow our focus to one stage of formal education, but support students from pre ~~-~~ school to matriculation, and beyond.

2 ~~.~~ Be sustainable

We strive to be sustainable in where and how we work. The programmes we run are not short ~~-~~ term interventions but are designed to be sustained over time.

3 ~~.~~ Be additive, not competitive

We work with the state school system to supplement the education it provides, working together for greater impact ~~.~~

4. Drive towards outcomes

In everything we do, we are oriented by the outcomes we seek and are guided by finding the best path to impact.

5. Working with and for the community

We are deeply established in, and motivated by, the local community ~~.~~ This is essential to our success and impact.

6 ~~.~~ Working through partnerships

By working with others, we can maximise the impact of our resources and provide pathways for others to have a positive role in our community.

Each of our six principles is woven into our key programmes and into the KHULA mindset, and together they form the foundation of our successful, impactful and sustainable model. Not only do we see impact on the ground stemming from our model of action, but we also are reassured by global studies that verify the importance of each of our principles ~~.~~

Medium ~~-~~ and long ~~-~~ term strategy ambitions:

In line with our medium ~~-t~~ erm plans, 2024 was the second year in which our top ~~-~~ up teaching support has supported three clusters of schools ~~.~~ The third cluster was enhanced during 2024 with the opening of our fourth KHULA Isisekelo preschool. And, in support of SDGs 8.3 and 8.5, we continue to grow and deepen our Skills and Employment programme for both in and out ~~-~~ o ~~f-~~ school youth. This was particularly facilitated by the opening of our two skills hubs in 2024. In 2024 we trained 643 local young people in a range of work readiness and practical skills ~~.~~

4

Financial review

Income:

The income can be broken down as follows:

~~-~~ income from trusts and foundations continued to provide the base of our programmes with income reaching £381,698 (2024: £391,198) ~~.~~ Restricted funding made up £36,025 (2024: £101,686) of this total.

Although income was lower during 2024/25 than the previous year the effect of this was counter ~~-~~ acted by an increase in income in our sister charity in South Africa. Therefore the funding requirement from the UK entity to the South African entity was also correspondingly lower.

Expenditure:

Expenditure continued to be focussed on our core programme work in South Africa and fundraising in the UK. Expenditure totalled £405,060 (2024: £468,791).

Restricted expenditure stood at £125,851 (2024: £175,465)

At the end of the year the total funds balance stood at £170,950 (2024: £198,142) made up of restricted funds of £36,336 (2024: £124,162) and unrestricted funds of £136,614 (2024: £73,980). We believe that these allow the trust to maintain its current approach to meet our goals and provide the basis for future funding plans.

In 2024/25 KHULA appointed a second member of staff in the UK to strengthen capacity for donor engagement, reporting and strategic communications. This reflects the charity's growing profile, fundraising needs, and commitment to sustaining long ~~-~~ term partnerships ~~.~~ The UK team is responsible for raising funds for both KHULA Education (UK charity no. 1115636) and KHULA's Not for Profit Company (NPC) in South Africa. This dual responsibility ensures streamlined international donor stewardship and enables funding to flow efficiently to programme delivery on the ground. The team also supports monitoring, evaluation and reporting across both entities to meet the expectations of funders and regulatory bodies.

Reserve Policy

The Trustees have decided to adopt a low ~~-r~~ isk approach and hold surplus funds in short term UK deposit accounts and in order to minimise currency risk also have a South African Rand deposit bank account, to hold a proportion of reserves in South African Rand. It is the policy of the trust that unrestricted funds which have not been designated for a specfic use should be maintained at a level equivalent to three month's expenditure. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Foundation's current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

At 5 April 2025, the total reserves of the Trust stood at £170,950 (2024: £198,142) of which £34,336 (2024: £124,162) were restricted funds set aside for mult ~~i-~~ year projects ~~.~~ This is within the Trustees’ requirement.

Risk Policy

The Trustees have given consideration to the main risks to which the trust is exposed and have satisfied themselves that systems, actions and procedures are in place to manage and mitigate those risks.

Governance

The Trustees meet formally, between two to three times a year, to review financial and operational performance. Detailed progress on projects that have received grants are reveiwed at each Trustee meeting. Sub ~~-c~~ ommittes have been formed to oversee finance, strategy and fund ~~-r~~ aising between meetings. These can also be for engagement with trustees of the Foundation in South Africa. As opportunities allow, there are UK trustee visits to the supported schools and projects funded by the UK. Significant efforts have been made to ensure GDPR compliance, and to mitigate any associated risks.

5

Currency Risk

The trustees have decided to adopt a low ~~-r~~ isk approach and hold surplus funds in short term UK deposit accounts and in order to minimise currency risk also have a South African Rand deposit bank account, to hold a proportion of assets in local currency ~~.~~ The trustees have now also engaged a foreign exchange broker to be used when transferring funds to our sister South African entity to in order to reduce exchange rate risk and the associated transfer costs.

Financial Risk

We operate a dual signature regime on all bank accounts. Expenditure, future commitments and bank balances are reviewed at trustee meetings. Private donations are made either via an approved internet intermediary (such as Just Giving) or directly to the Trust's bank account ~~.~~ Despite being a small charity our accounts are audited annually.

Future Sustainability

The Trustees have continued to invest in fundraising support to secure the long ~~-~~ term nature of the organisation. Support is primarily used to approach major foundations for grants for specific projects and to ensure all grants and investments are against defined projects which have discrete and measurable outcomes ~~.~~ There are very good relations with known donors. Records of donors have been formalised, and there is regular contact with past and current donors/funders to support continuing and regular flow of funds ~~.~~

Grants not applied to a specific project

We work in a specific area and grants are made only to support the work and running of the Foundation in South Africa. The Chairman and other Trustees maintain close links with KHULA Education in South Africa and make regular visits to South Africa, conducting onsite inspections of projects and meeting with the trustees and officers of the Foundation in South Africa ~~.~~

The Trusts’ Objectives

To advance education and raise awareness about different racial groups in order to promote good relations between persons of different racial groups by promoting knowledge and mutual understanding with particular reference to South Africa and its historical context;

To advance the education of young people in the United Kingdom in the subject of racial reconciliation with particular reference to South Africa and its historical context;

To promote sustainable development for the benefit of the public by: (a) the preservation, conservation and protection of the environment and the prudent use of resources in southern Africa and;

(b) the relief of poverty and the improvement of the conditions of life of socially disadvantaged communities in southern Africa particularly in the areas of education and health ~~.~~

Trustee Selection and Training

The trustees are appointed by resolution of the remaining trustees for a term of three years. Trustees can serve for additional periods, each period being for three years. New trustees are nominated by members of the board of trustees who appoint the new trustee if they have the necessary skills to contribute to the Trust's management and development. Where new trustees are appointed, they are given a formal induction to the work of the Trust and provided with the information they need to fulfil their roles, which includes information about the role of trustees and charity law.

Public Benefit

The objects and purpose of the Trust are set out above. The trustees confirm that they have referred to the Charity Commission's general guidance on public benefit when reviewing the Trust's aims and objectives and in planning future activities and setting grant making policy for the year.

Management

During the year ended 5th April 2025, the trustees met on 3 occasions ~~.~~ The trust employs two staff members in the UK; other activities are carried out either by the trustees who receive no salary or expenses or by engaging on a consultancy basis suitable and experienced support.

6

Statement of Trustee's responsibilities

The Trustees 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) ~~.~~

The law applicable to charities in England & Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the affairs of the charity and of the incoming resources and the application of resources of the charity for the year. In preparing these financial statements, the Trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed ~~.~~ They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularies.

In so far as the trustees are aware:

The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity's website ~~.~~ Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Disclosure of information to auditor

Each of the Trustees has confirmed that there is not information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to idenitfy such relevant information and to establish that the auditor is aware of such information.

This report was approved by the board on 29.November 2025. and signed on its behalf ~~.~~

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DAVID RATTRAY FOUNDATION (KNOWN AS KHULA EDUCATION) Independent auditor's report to the member of DAVID RATTRAY FOUNDATION (KNOWN AS KHULA EDUCATION)

Opinion

We have audited the financial statements of DAVID RATTRAY FOUNDATION (KNOWN AS KHULA EDUCATION) (the ‘trust') for the year ended 5 April 2025 which comprise the statement of financial activties, the balance sheet, the 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 the Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the finanicial 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.

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

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

Other information

The other information comprises the information included in the Trustees' annual report other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon ~~.~~ Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.

We have nothing to report in this regard.

8

DAVID RATTRAY FOUNDATION (KNOWN AS KHULA EDUCATION)

Independent auditor's report

to the member of DAVID RATTRAY FOUNDATION (KNOWN AS KHULA EDUCATION)

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the trust and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities statement, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the trust’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 cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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.

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

Our approach was as follows:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity.

We communicated identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non ~~-~~ compliance with laws and regulations throughout the audit. We examined and discussed with management any known or suspected instances of fraud or non ~~-~~ compliance with laws and regulations ~~.~~

We assessed the riskes of material misstatement in respect of fraud as follows:

The audit team discussed whether there were any areas that were susceptible to misstatement as part of their fraud discussion.

In addressing the risk of management override of controls, we tested the appropriateness of journal entries with a focus on large or unusual transactions based on criteria determined using our knowledge of the organisation and industry. We also challenged assumptions and judgements made.

We incorporated an element of unpredictability in the selection of the nature, timing and extent of our audit procedures.

9

,

DAVID RATTRAY FOUNDATION (KNOWN AS KHULA EDUCATION) Independent auditor's report to the member of DAVID RATTRAY FOUNDATION (KNOWN AS KHULA EDUCATION)

Based on the results of our risk assessment we designed our audit procedures to identify and to address material misstatements in relation to fruad, indlucing bribery and non compliance.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulation 2008. Our audit work has been undertaken so that we might state to the charity's trutees 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 trustees and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Moganarden Chelvanaigum FCCA 3 Sheen Road (Senior Statutory Auditor) Richmond for and on behalf of TW9 1AD SKS Audit LLP

Date. 2aloslac

10

DAVID RATTRAY FOUNDATION (KNOWN AS KHULA EDUCATION) Income Statement

for the year ended 5 April 2025

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||||||||||| |---|---|---|---|---|---|---|---|---|---| |Unrestricted|Restricted| |funds|funds|Total|Total| |Notes|2025|2025|2025|2024| |£|£|£|£| |Income|from:| |Donations|and|legacies|2|345,673|36,025|381,698|390,436| |Investments|3|1,426|-|1,426|762| |Total|income|347,099|36,025|383,124|391,198| |Expenditure|on:| |Raising|funds|4|11,329|-|11,329|6,324| |Charitable|activities|5|255,634|125,851|381,485|462,467| |Governance|costs|6|11,459|-|11,459|-| |Finance|costs|787|-|787|-| |Total|expenditure|279,209|125,851|405,060|468,791| |Net|(expenditure)/income|for the|year|67,890|(89,826)|(21,936)|(77,593)| |Other|recognised|gains|and|losses| |Loss|on|foreign|exchange|(5,256)|-|(5,256)|(20,564)| |Net|movement|in|funds|62,634|(89,826)|(27,192)|(98,157)| |Fund|balances|at|6|April|2024|73,980|124,162|198,142|296,299| |Funds|balances|at|5|April|2025|136,614|34,336|170,950|198,142|

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25 November 2025

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DAVID RATTRAY FOUNDATION (KNOWN AS KHULA EDUCATION) Notes to the Accounts

for the year ended 5 April 2025

1. Summary of significant accounting policies

Charity information

David Rattray Foundation is a Trust registered in England and Wales ~~.~~ The principal address of the Trust is given on the charity information page ~~.~~ The nature of the charity's operations and principal activities are set out in the Trustees' Report.

Basis of preparation

The financial statements of the charity, which is a public benefit entity under FRS102, have been prepared in accordance with the Charities SORP (FRS102) ‘Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019)’, Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011.

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

The financial statements have been prepared under the historical cost convention.

Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the trust has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used ~~.~~ The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Income

Income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Donations are recognised on receipt unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid is recognised at the time of the donations.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Expenditure is accounted for on an accruals basis, inclusive of VAT which cannot be recovered. Costs of Charitable Activities include those costs which meet the objectives of the Trust. Governance costs are those incurred in meeting the statutory requirements of running the Trust.

Cash and cash equivalents

Cash and cash equivalents include deposits held with banks ~~.~~

Creditors

Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price ~~.~~

Foreign currency translation

Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction ~~.~~

At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non ~~-~~ monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to the Statement of Financial Activities as a gain or loss.

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DAVID RATTRAY FOUNDATION (KNOWN AS KHULA EDUCATION) Notes to the Accounts for the year ended 5 April 2025

Grants

Grants are treated as expenditure when authorised by the Trustees and communicated to beneficiaries, not when the grants are paid ~~.~~

Tax status

The Trust is a registered charity and therefore is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objectives ~~.~~

2 Donations and legacies

Unrestricted Unrestricted Unrestricted Restricted Restricted Unrestricted
Restricted		 Unrestricted
Restricted		 Unrestricted
Restricted		 Unrestricted
Restricted		 Unrestricted
Restricted		 Unrestricted
Restricted		 Unrestricted
Restricted		 Unrestricted
Restricted
funds funds Total funds
funds		 Total
2025 2025 2025 2024 2024 2024
£ £ £ £ £ £
Donations and gifts 345,673 36,025 381,698 288,750
101,686
390,436
345,673 36,025 381,698 288,750
101,686
390,436
3
Investment income		 2025 2024
£ £
Interest receivable 1,426 762
4
Raising funds		 2025
£		 2024
£
~~Fundraising ~~ ~~and ~~ ~~publicity~~
Charity development 11,329 6,324
11,329 6,324
5
Charitable activities		 2025 2024
£ £
Staff
Staff		 costs
administrative fees		 94,574
845		 68,961
~~-~~
Charity expenditure 275,167
384,686
Just giving fees 858 930
Website costs 1,416 1,108
Audit fees 4,800 3,435
Accountancy fees 2,580 2,565
Bank charges 897 590
Subscription fees 348 192
381,485
462,467
Analysis by fund
Unrestricted funds
Restricted funds		 255,634
287,002
125,851
175,465
381,485
462,467
6
Governance costs		 2025 2024
Trustee costs
Legal fees		 £
9,185
2,274		 £
~~-~~
~~-~~
11,459 ~~-~~

15

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DAVID RATTRAY FOUNDATION (KNOWN AS KHULA EDUCATION) Notes to the Accounts for the year ended 5 April 2025

13 Unrestricted funds

At 6April At 6April Incoming
Resources		 Incoming
Resources		 Incoming
Resources		 Incoming
Resources		 Transfers Gainsand At 5April
2024 resources
expended		 2024 losses 2025
£ £
£		 £ £ £
General funds 73,980 347,099
(279,209)		 ~~-~~ (5,256) 136,614
73,980 347,099
(279,209)		 - (5,256) 136,614
At 6April Incoming
Resources		 Transfers Gainsand At 5April
2023 resources
expended		 2024 losses 2024
General funds £
178,739		 £
£
289,512
(293,326)		 £
(89,048)		 £
(11,897)		 £
73,980
178,739 289,512
(293,326)		 (89,048) (11,897) 73,980

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the Trustees for specific purposes.

14 Restricted funds

At 6April At 6April At 6April Incoming
Resources
Transfers		 Incoming
Resources
Transfers		 Incoming
Resources
Transfers		 Incoming
Resources
Transfers		 Incoming
Resources
Transfers		 Incoming
Resources
Transfers		 Incoming
Resources
Transfers		 Gainsand At 5April At 5April
2024 resources
expended		 2024 losses 2025
£ £ £ £ £ £
Education programme costs 33,056 36,025
(34,745)		 - - 34,336
Third Cluster Building
Infrastructure & ICT Hub 91,106 (91,106) ~~-~~
124,162 36,025
(125,851)		 - - 34,336
At 6April Incoming
Resources
Transfers		 Gainsand At 5April
2023 resources
expended		 2024 losses 2024
Education programme costs £
117,560		 £
£
£
101,686
(81,789)
(95,734)		 £
(8,667)		 £
33,056
Third Cluster Building
Infrastructure & ICT Hub - -
(93,676)
184,782		 ~~-~~ 91,106
117,560 101,686
(175,465)
89,048		 (8,667) 124,162

The charity has the following restricted funds:

Education programme costs: For the purpose of the general running costs of the pre ~~-~~ schools, top ~~-~~ up teaching and other education programmes.

Third Cluster Building Infrastructure & ICT Hub: For the purpose of the Infrastructure ~~-~~ Third Cluster Expansion Building ~~.~~

15 Analysis of net Analysis of net Analysis of net Analysis of net Analysis of net assets assets assets assets between funds
Unrestricted
Restricted
Total		 Unrestricted
Restricted
Total
2025
2025
2025		 2024
2024
2024
£ £
£		 £ £
£
Fund balances at 5 April are
represented by:
Current assets/(liabilities)
136,614
34,336
170,950		 73,980
124,162
198,142
136,614
34,336
170,950		 73,980
124,162
198,142

17

DAVID RATTRAY FOUNDATION (KNOWN AS KHULA EDUCATION) Notes to the Accounts

for the year ended 5 April 2025

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||||||||| |---|---|---|---|---|---|---|---| |16|Movement|in|funds| |Net|Transfer| |At|6 April|movement|between|At 5 April| |2024|in|funds|funds|2025| |£|£|£|£| |Unrestricted|funds| |General|funds|73,980|62,634|-|136,614| |Restricted|funds| |Education|programme|costs|33,056|1,280|-|34,336| |Third|Cluster|Building| |Infrastructure &|ICT|Hub|91,106|(91,106)|-|-| |Total|Restricted|funds|124,162|(89,826)|-|34,336| |Total|funds|198,142|(27,192)|-|170,950| |Net|Transfer| |At|6 April|movement|between|At 5 April| |2023|in|funds|funds|2024| |£|£|£|£| |Unrestricted|funds| |General|funds|178,739|(15,711)|(89,048)|73,980| |Restricted|funds| |Education|programme|costs|117,560|11,230|(95,734)|33,056| |Third|Cluster|Building| |Infrastructure|&|ICT|Hub|-|(93,676)|184,782|91,106| |Total|Restricted|funds|117,560|(82,446)|89,048|124,162| |Total funds|296,299|(98,157)|-|198,142|

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17 Related party transactions

During the year one trustee loaned the charity £50K (2024: Enil). Interest is being charged at Bank of England base rate ~~.~~ The loan is repayable commencing on 30 November 2025 by quarterly instalments of principal and interest, subject to the availability of sufficient unrestricted funds of the charity. Where sufficient unrestricted funds are not available, repayment may be deferred until such funds become available, in accordance with the terms of the loan agreement dated 18 November 2024.

There was no expenditure paid to related parties for the year ended 5 April 2025 for charitable activities (2024: Enil).

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||||||||||| |---|---|---|---|---|---|---|---|---|---| |18|Cash|absorbed|by|operations|2025|2024| |£|£| |Deficit|for|the|year|(21,936)|(77,593)| |Adjustments|for:| |Investment|income|recognised|in|statement|of|financial|activities|(1,426)|(762)| |Financing|costs|recognised|in|statement|of|financial|activities|787| |Foreign|exchange|differences|(5,256)|(20,564)| |Movements|in|working|capital:| |(Increase)/decrease|in|debtors|(8,708)|(12,500)| |(Decrease)/increase|in|creditors|55,555|(1,062)| |Cash|absorbed|by|operations|19,016|(112,481)|

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18