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← Royal Deaf Education Trust

2025-08-31-accounts

Annual report and financial statements For the period 1st September 2024 - 31st August 2025

Exeter Royal Academy for Deaf Education, a company limited by guarantee Registered office: The Deaf Academy, 1 Douglas Avenue, Exmouth, Devon, EX8 2AU Company registration no. 6585703 Registered charity no. 1124523

Exeter Royal Academy for Deaf Education

Contents

Reference and Administrative Details 1
Trustees' Report 3
Statement of Trustees' Responsibilities 18
Independent Auditor's Report on the Financial Statements 19
Statement of Financial Activities incorporating Income and Expenditure Account 23
Balance Sheet 25
Statement of Cash Flows 26
Notes to the Financial Statements 27

Exeter Royal Academy for Deaf Education

Reference and Administrative Details

Trustees (Directors)

Mr A Alexander Dr M Collie Mr A Collyer, Honorary Treasurer Mr R Davey Mr J Dewhirst (resigned 11 December 2025) Mrs S Papworth Dame A Pedder DBE, Chair Mr D Robertson, Vice Chair Mr R Spencer Ms J Stephens MBE

Company Secretary

Mrs C Quick

Key Management Personnel

Mr S Dewing, Principal & Chief Executive Officer (CEO) Mrs C Quick, Chief Financial Officer

Principal and Registered Office

The Deaf Academy 1 Douglas Avenue Exmouth EX8 2AU

Company Registration Number

06585703

Registered Charity Number

1124523

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Exeter Royal Academy for Deaf Education

Reference and Administrative Details

Independent Auditors

PKF Francis Clark Statutory Auditor Sigma House Oak View Close Edginswell Park Torquay Devon TQ2 7FF

Bankers

National Westminster Bank Plc 59 High Street Exeter Devon EX4 3DP

Charities Aid Foundation (CAF Bank) 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ

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Exeter Royal Academy for Deaf Education

Trustees' Report for the Year Ended 31 August 2025

The Trustees present their annual report together with the financial statements and auditor’s report of the charitable company for the year ended 31 August 2025. The annual report serves the purposes of both a Trustees' report, and a Directors' report under company law.

The Charity, Exeter Royal Academy for Deaf Education, operates a non-maintained, residential special school and an independent specialist college for students aged 5 to 25 years (the Deaf Academy). Students are placed at the Deaf Academy by local authorities in England, Scotland and Wales. The Charity also operates a Children’s Home for Deaf young people (Rolle House).

Introduction: Sylvan Dewing, Principal and CEO

Over the past academic year, the Deaf Academy and wider Charity have continued to strengthen the quality and impact of our education, care and support for Deaf young people with additional and complex needs. Overall the quality of our provision remains at a high standard with School and College provision remaining Ofsted GOOD rated, Residential Care retaining their GOOD grading at inspection. However, our Children's Home had a more challenging year receiving a Requires Improvement grade from Ofsted. Fearnside House has continued to operate successfully and at full capacity in 2025/26, supporting young adults towards greater independence.

This year also saw national recognition through the National Association of Specialist Colleges ( Natspec) Award for Innovation in Student Voice. In addition, the Deaf Academy was awarded an Area of Excellence by Challenge Partners for the second year in a row and for the second-year running the Deaf Academy retained our Eco Schools Green Flag Award.

There has been continued progress in curriculum development, therapeutic provision and student outcomes. The achievements of our students - within the Deaf Academy, in local businesses, in community events and in national forums are a testament to the dedication of our staff and the generosity of those who champion our mission.

We wish to acknowledge the passing of two well loved and respected members of our college team Deb Thomas and Tracey Lawlor in August of 2025. Both members of staff had worked at the Charity for a number of years and made an incredible contribution to the Deaf Academy community and supporting students.

Over the past academic year, we have made significant structural changes in redefining, recategorising and reorganising our education, care and therapeutic provision. This has enabled us to restructure the admission process and fees model which have been implemented across the Charity. In addition, we have made progress in the move to digitisation of systems through the introduction of a new Student Management Information System and a new HR system.

Our workforce remains central to this success. Recruitment has continued to improve, staff have benefited from expanded Continuing Professional Development (CPD) and British Sign Language (BSL) training opportunities, and the completed Pay Review has helped ensure our roles remain competitive and appropriately benchmarked. Staff survey results are overwhelming positive in which 96% of staff reported that they enjoy working at the Charity and 97% would recommend it as a great place to work. This reflects a highly positive culture, with strong levels of pride, teamwork and commitment across the organisation. We are also grateful for the continued support of our families, volunteers, donors, partners and wider community, whose contributions have enabled improvements to facilities, resources and the student experience.

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Exeter Royal Academy for Deaf Education

Trustees' Report for the Year Ended 31 August 2025

As we look ahead, we do so mindful of the wider political and financial challenges facing the Special Educational Needs and Disabilities (SEND) sector. Local Authority high needs pressures, national reforms and increasing complexity of students needs continue to shape the environment in which we operate. As we prepare for our Bicentenary year in 2026, we remain firmly focused on advocating for Deaf young people and delivering a high quality, specialist provision that reflects our charitable purpose and long term strategic vision.

We would like to extend our sincere thanks to all Trustees and Governors for their continued commitment, guidance and contribution throughout the year. Their time, expertise and support have been greatly appreciated and have helped us to continue the Charity’s work.

Strategic Report

Achievements and performance

The 2023-2028 strategic plan includes the following strategic priorities:

  1. Redesigning our provision to better meet the changing needs of our students

  2. Securing and maintaining high quality in all aspects of our provision

  3. Becoming a research and professional development and training hub for professionals working for Deaf children with additional and complex needs

  4. Maintaining a financial surplus, reinvesting in our staff, facilities and resources

  5. Creating significant impact regionally and locally via the promotion of our wider Charity objectives (raising awareness/promotion, tackling discrimination, campaigning)

  6. Ensuring the Charity is a great place to work

The Charity has continued to make good progress towards meeting its strategic priorities during 2024/25.

Priorities 1&2: Redesigning provision and improving and maintaining quality

In September 2024 the Deaf Academy started the academic year with seventy-seven students on roll, an increase of ten students from September 2023. Numbers remained fairly static over the year, with seventy seven students on roll in July 2025. Student numbers remain at a similar level for 2025/26.

School has been focused on developing and refining the Academy’s bespoke Deaf/SEND curriculum. A progressive series of ‘I Can’ statements is being developed for the four core foundation curriculum areas (Literacy, Maths, BSL and Communication and Personal, Social, Health and Economic (PSHE) to support assessments and tracking.

The change of curriculum and adapted teaching approaches has led to Year 11 students transitioning to College with a suite of qualifications, including qualifications ranging between entry level 1 and functional skills level 1 in English, Maths and BSL. In addition, students have achieved several AQA unit awards linked to their wider learning within learning projects.

College has developed a new curriculum model to reflect the Charity’s commitment to supporting students’ communication needs, academic ambitions and the development of the Preparation for Adulthood framework. Alongside School, College is also working towards a revamped assessment system with ‘I Can’ statements to describe student progress.

College has launched the Deaf Academy’s Supported Internship programme with five applications submitted to the Department of Work and Pensions and local employers expressing interest in taking on internship students, supported by job coaches with high levels of BSL.

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Exeter Royal Academy for Deaf Education

Trustees' Report for the Year Ended 31 August 2025

Partnerships with Exeter College and Bicton College have enabled students to complete Level 1,2 and 3 courses in diverse areas, such as photography, hairdressing and carpentry. The work with Exeter College and Bicton College is supported by Communication Support Workers and is enabling students to work towards future employment in their chosen fields. Two of our students were named as ‘Student of the Year’ on their respective courses which is an exceptional achievement for a college of our size. We were equally delighted when one of these student’s support dog won ‘support dog of the year’!

Students studying for formal qualifications in their core subjects of English, Maths and BSL are progressing well and are on track to achieve their assigned qualifications. Students on the semi-formal pathway are completing their Life for Living OCR qualification and have had opportunities to participate in the local community. Students have been able to complete a Sailability Qualification with Exmouth Sailing Club and have visited Dawlish Garden Trust, Exmouth Leisure Centre and been on Beach Cleans with the local Lions Club.

The Charity is very proud that students were awarded the Natspec Award for Innovation in Student Voice and the inaugural Natspec Kathryn Rudd Award for Innovation for their work on the Puffin Road Crossing project.

Residential Care maintained a Good Ofsted rating in January 2025, reflecting the hard work of the team over the last year. The report stated that ‘the adults who support them are very committed and enthusiastic about a caring and supportive environment so the children can really thrive.’ 31 students were residential in 2024/25 including respite care, which is a similar level of occupancy to the previous year. Residential Care is also now a registered provision with the Care Quality Commission (CQC) following a successful visit in December 2024.

Fearnside House has continued to thrive with nine rooms occupied in 2024/25 and is at full capacity in 2025/26 with ten students in residence. The focus is promoting independence and developing essential life skills with the overarching aim of preparing students for life beyond Fearnside House, with the goal of living independently or with minimal support. With this in mind students are encouraged to be involved in developing communal rules for Fearnside House and in adapting the facilities to suit their needs. Students have negotiated and agreed to rules relating to visitors and submitted a successful grant application to Active Devon for funding for equipment to convert the garage into a gym. Students chose the gym equipment and were supported to install it themselves.

Alongside Residential Care, Fearnside House is now a registered provision with the CQC and expects the first inspection in 2025/26.

Rolle House has faced significant challenges in 2024/25, the behaviour of one young person resulted in levels of behaviour incidents which challenged the team’s resilience. During the summer term the number of placements reduced from three to two and a deficit is budgeted for 2025/26. In April 2025 Rolle House received an Ofsted grading of ‘Requires Improvement’. It was subsequently agreed Rolle House could not meet the needs of one young person and an alternative placement was arranged. The Rolle House team created a compliance and action plan and are supported by external professionals and by the Charity's Welfare team to implement the changes required.

Redesigning our approach to therapeutic support, the Therapies team have developed a five-week universal rotation block approach to embed therapies into the students’ everyday curriculum. Delivered by the occupational therapist, speech and language and neurodiversity teams, this initiative allowed every student to receive input from these teams and for this to be embedded into their curriculum. The Therapies team continued to deliver 1:1 and small groups intervention work with students, in addition to the universal offer, where a need was identified.

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Exeter Royal Academy for Deaf Education

Trustees' Report for the Year Ended 31 August 2025

The Exeter Southernhay and Topsham Rotary Club raised funds to buy seven Woojer haptic vibration vests. The Woojer vests enhance audio experiences by providing tactile feedback or vibrations that correspond to the sounds being played and are beneficial for both students with no access to sound and those with some access. Students also have early access to a virtual reality (VR) app, which is being developed to support listening and virtual reality headsets have been purchased to support this. VR creates immersive environments that allow students to explore subjects in a deeper more engaging manner, from virtual field trips to complex simulations. A visitor to the Deaf Academy donated two more headsets and vouchers for additional Apps, having seen them in action. Students use the VR headsets to promote relaxation, alleviate anxiety and improve fitness, play co-operation games and experience the wider world in 3D.

The medical team have been supporting health promotion to the students with a focus on healthy eating. Students have been encouraged to plant seeds and care for their plants before being encouraged to cook and try the vegetables that they’ve grown.

Priority 3: Becoming a research and professional development and training hub for professionals working for Deaf children with additional and complex needs

The Principal and CEO remains the elected Chair of Natspec for the South West. We also delivered a workshop at the national conference on how to work positively with local communities.

The Principal set up the first UK Deaf Head and Principals group which has sixteen members and meets termly to discuss challenges and opportunities for the Deaf Education Sector.

We hosted the national British Association of Teachers of the Deaf (BATOD) and British Association of Educational Audiologists (BAEA) conference which is the national conference for Teachers of the Deaf and Audiologists.

Priority 4: Maintaining a Financial surplus. Reinvesting in our staff, facilities and resources

A deficit of £163k for the Charity is reported for 2024/25. This is the first deficit since the move to the Exmouth site. The financial pressure on local authorities’ high needs budget and increased costs is impacting the financial position.

During 2024/25 a fees review was undertaken. The fees review represents a fundamental re-structure of the charging model. The fees charged to Local Authorities need to fairly represent what is being provided and it is not sustainable for the Charity to continue to subsidise fee levels. The new fees model is closely linked to the new bespoke curriculum and will better enable the Charity to demonstrate the resources and provision for students according to their education, care and therapy support levels.

We achieved positive cash generation, made continued investment in capital and have structured longterm finance with CAF bank. An additional classroom was created in School, updates to the fleet, investment in improved online meeting facilities which will also support student annual review meetings and, with the support of donations and Devon County Council, installed a new pedestrian road crossing outside the Academy.

The Charity invested in its staff through the pay review and the CPD budget.

Encouraged by the School’s Eco–Committee the Charity continues to consider its environmental impact, and work is continuing on a Net Zero action plan, supported by Let’s Go Zero. Food recycling bins are available across all three sites and the gas and electric contracts for the main site have been switched to renewable energy suppliers.

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Exeter Royal Academy for Deaf Education

Trustees' Report for the Year Ended 31 August 2025

Priority 5: Creating significant impact regionally and locally via the promotion of our wider charitable objectives

The Charity has continued to strengthen its regional and national profile through a wide range of partnerships, professional contributions and community engagement. A developing collaboration with the Northcott Theatre will support the Bicentenary celebrations and promote greater accessibility to the - arts through BSL led performances.

Our Family Sign Language weekends have grown in impact, with our Social, Emotional and Mental Health (SEMH) practitioner sharing expertise at major sector events including the Association of British Sign Language Teachers and Assessors conference in Manchester, a Department for Education (DfE) event at the Frank Barnes School in London, and the International Congress on the Education of the Deaf in Rome. We were also proud to host the national BATOD and BAEA conference in March 2025, bringing together professionals from across the UK to showcase innovation in Deaf education, technology and inclusion.

Work with the British Deaf Association has supported the creation of additional Family Sign Language - resources, while Post 19 students contributed to national Deaf awareness campaigns through a police training video for the Blue Light services. A new partnership with the RNLI is helping to increase Deaf - awareness among lifeguards and provide water safety workshops for students. Community connections have continued to flourish, from sponsoring the Devon Deaf Rugby Team to hosting stands at the Devon County Show, City Lit Deaf Day, Pride events in Exeter and Exmouth, and the Exmouth Festival. Students were also invited to perform signed singing on the BBC stage, and the organisation featured in Exeter Living Magazine ahead of the 200th anniversary celebrations.

We were delighted to see former Chair of Trustees, Peter Burroughs, awarded an MBE for services to education, and our Chief Financial Officer invited to speak at the Charity Finance Group Annual Conference on innovative approaches to risk. The organisation continues to play an active role in national sector bodies, with the Principal and CEO serving as South West Regional Chair and a member of the Natspec Board of Directors, and ongoing involvement with the National Association of Special Schools (NASS) to influence improvements across the SEND sector.

Priority 6: Ensuring the Charity is a great place to work

The Charity continues to see good progress in staff recruitment (increase of 40% in staff numbers since 2020). During the year 46 new staff were recruited from successful recruitment campaigns. The Staff Survey was very positive with 96% of staff reporting they enjoy working at the Academy and 97% would recommend it as a good place to work. 98% report good teamwork with colleagues and 97% agree the Academy fosters an inclusive environment.

Work has continued on the workforce development plan and we continue to invest in staff skills through the CPD and induction programme and over 90 staff received BSL training from the in-house BSL team. A Middle Leadership Development programme is being launched in 2026. The first staff wellbeing day was held in January 2025 and following its success was repeated in January 2026.

This year we were awarded the Silver Award for Medium/Large Business of the Year by Exmouth Chamber of Commerce.

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Exeter Royal Academy for Deaf Education

Trustees' Report for the Year Ended 31 August 2025

Plans for the Future

The Charity began a review of the Charity name and objects in 2024/25 to ensure they remain appropriate and fit for purpose. This was done in conjunction with staff, students, Governors, Trustees and the wider deaf community. A new name and revised objects will be introduced in 2026. A governance review will also take place in 2026 to review the governance structure, processes and reporting.

The Charity will continue its digitalisation programme, including launching a new, modern website designed to be more streamlined, user - friendly and up - to - date, introducing an electronic medication administration system, and implementing a replacement finance system. In addition, an AI Working Group will be established to explore the efficiencies and benefits that artificial intelligence can bring.

A new Virtual Tour of the Deaf Academy will be launched, showcasing our multi - modal communication approach and providing an immersive experience of both the Academy’s facilities and key locations in Exmouth that our students regularly access.

The growing number of work placements for College students has increased demand on the Academy’s - transport fleet. The Charity is therefore delighted to receive a donated mini bus from Switch, which will not only ease this pressure but also enable even more student trips and visits in the future.

The Charity plans to progress its £60,000 fundraising campaign to transform an outdoor space into an inclusive sensory play area that better supports the physical, social and emotional needs of Deaf students with complex additional needs.

Bicentenary Celebrations

The Charity was founded in 1826 and in 2026 will celebrate its 200[th] anniversary as the oldest Deaf school in the England. We are planning a year of special events and activities to celebrate this incredible milestone. The Bicentenary isn’t just about celebrating our past – it’s about building a future where every Deaf young person has the opportunity to thrive. We have launched a Bicentenary fundraising appeal to:

This incredible moment will be marked by Deaf led and deaf focused events and aims to create a lasting legacy.

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Exeter Royal Academy for Deaf Education

Trustees' Report for the Year Ended 31 August 2025

Objectives and activities

Objects and aims

The Charity’s objects, which were revised with the permission of the Charity Commission in 2008, are as follows:

Objectives, strategies and activities

Our vision is to be an outstanding provider of Education, Support and Care for Deaf young people with additional and complex needs and a centre of excellence for Education, Care and Support for Deaf young people with additional and complex needs, including research, sharing best practice, and providing information to the wider Deaf/Special Needs (SEN) sector. We will be a champion in promoting and celebrating the diversity of the Deaf cultural and linguistic community in all its forms and tackling discrimination where it occurs.

Our mission is to nurture and grow Deaf young people with a real sense of belonging who are confident, resilient, and independent, supporting their development of robust behaviours, knowledge and skills to live happily in the wider world. This informs everything across Education, Care, Support and the whole Academy. We embrace the diversity of both our young people’s communication needs and special educational needs and support them on a journey towards a strong sense of self and a clear personal identity.

We provide the following services:

The Deaf Academy, Fearnside House and Rolle House are unique provisions in the UK, offering a specialist curriculum, teaching, support and residential care to Deaf young people, the majority of whom have accompanying additional or complex needs. This is a fantastic place for young people to learn, develop and be part of a diverse Deaf multilingual community. Our aim is to develop empowered, confident young people who are equipped to embark into adulthood with aspiration, skills and resilience.

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Exeter Royal Academy for Deaf Education

Trustees' Report for the Year Ended 31 August 2025

We encourage our young people to explore their passions and develop a strong Deaf identity, while also supporting them to achieve educationally. We offer a bi-lingual and multi-modal environment, where our students learn both BSL and English and use Augmented and Alternative Communication (AAC) strategies and devices, depending on their needs.

Public benefit

The Trustees have given consideration to the Charity Commission’s general guidance on public benefit and in particular to its supplementary public benefit guidance on advancing education and on fee charging.

The Charity provides specialist Deaf education which benefits the students who attend the Academy’s School & College. Admission to the School & College is open to any student for whom the specialist education has been professionally assessed as appropriate to meet their needs. Fees are charged to allow costs to be recovered, these are usually funded by local authorities and the Education and Skills Funding Agency. Local Authorities benefit as the Charity enables them to meet their statutory responsibilities to educate children with hearing impairment. The families of the Academy’s students also benefit from the support given to them and from the greater wellbeing and achievement of their children.

The wider community benefits because many of the Academy’s students participate in work-placements and other events in the community, raising awareness of deafness.

Since moving to Exmouth in 2020 the Charity has sought to establish strong links with the local community and to encourage Deaf awareness.

Family Sign sessions (funded by WK Hutchings Trust) have proved popular and, in response to requests from the community, the intention is to provide more BSL lessons for the public. College students have been involved in providing Deaf Awareness and basic BSL training to local businesses and groups, including the Met Office, NHS and Police.

Staff and students have supported local events including Exmouth Pride, the Exmouth Movie Festival, the Exmouth Festival and the Devon County Show, providing information and signposting for Deaf awareness and BSL to the public. The Charity worked with the Devon County Show to continue to improve accessibility at the show in 2025.

The Puffin Crossing Appeal raised £30,000, including match funding through a legacy donation, towards the installation of a pedestrian road crossing on Douglas Avenue, outside the Academy. The crossing came into operation in the Autumn 2024 and has benefited students, staff and local community. The Charity won the Natspec Innovation Award 2025 for Innovation in Student Voice and the inaugural Natspec Kathryn Rudd Award for Innovation for their work on the Puffin Crossing, recognising the students’ campaign to persuade the Local Authority to approve the crossing and for generating support for the fundraising appeal.

The Charity has also supported national events including hosting the BATOD and BAEA conference.

The Charity is committed to the greater integration of Deaf and hearing communities and seeks to raise awareness of Deafness and promote the capabilities of Deaf people though publicity, partnership working, fundraising and similar activities.

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Exeter Royal Academy for Deaf Education

Trustees' Report for the Year Ended 31 August 2025

Structure, governance and management

Constitution

The Charity is a company limited by guarantee and is a registered charity. The charitable company's memorandum and articles of association are the primary governing documents of the Charity. The company registration number is 06585703, and the charity number is 1124523.

Under the provision of Section 30 of the Companies Act 2006, the company is entitled to omit the word "Limited" from its name.

The Trustees of Exeter Royal Academy for Deaf Education are also the directors of the charitable company for the purposes of company law.

Details of the Trustees who served throughout the year except as noted are included in the Reference and Administrative Details on page 1.

Members' liability

The company is limited by guarantee and has no share capital. In the event of a winding up the liability of the members is limited to £1 each.

Trustees and Governing Body

The Charity has a Board of Trustees which meets at least four times a year. The Trustees are responsible for the governance of the Charity as a whole, with governance for specific areas delegated to Governing Bodies and Committees as set out in the Charity’s Articles and Scheme of Delegation.

The governance of the Deaf Academy is delegated to a Governing Body which meets at least three times a year and carries out a series of Learning Walks and visits. The Governing Body is chaired by a Trustee and membership comprises two additional Trustees, the Principal (ex officio Governor), two staff Governors and eight Co-opted Governors. Two new Co-opted Governors were recruited during the year.

The governance of Rolle House is delegated to the Children’s Home Governing Body which meets at least three times a year. The Children’s Home Governing Body is chaired by a Trustee and the membership includes two additional Trustees.

The governance of Fearnside House is retained by the Board of Trustees. Detailed review and oversight of Fearnside House is delegated to a management committee. The Fearnside House Management Committee is chaired by a Trustee and the membership includes an additional Trustee and a Governor.

Method of recruitment and appointment or election of Trustees

The Trustees regularly review the composition of the Board, the Governing Body, the Children’s Home Governing Body and its various committees, sub-committees and working groups. The Trustees look at the blend of experience and skills of all Governors and Trustees to ensure that these meet the needs of the Charity. Where vacancies arise, a formal recruitment process is undertaken. This involves advertising both locally and nationally as well as more informal approaches to individuals who have the relevant skills and experience. Selection is made after a rigorous process including visits to the Charity and interviews by senior staff and Trustees and Governors. Induction is provided to all Trustees and Governors and an induction and training programme is organised by the Governance Officer. Governors and Trustees are expected to visit regularly.

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Exeter Royal Academy for Deaf Education

Trustees' Report for the Year Ended 31 August 2025

The Trustees and Governors undertake skill audits and self-evaluations on a regular basis to understand and support board performance. This enables the Charity to identify training and development needs and to provide opportunities to address them in addition to providing guidance to support the recruitment and selection of new Trustees and Governors.

Organisational structure

During the year the Charity has operated within its articles of association and supporting governance and committee structure to ensure it continues to have an effective governance framework in place.

All elements of the Charity’s operations are conducted under the leadership of the Principal and CEO, supported by the Senior Leadership Team. The Senior Leadership Team consists of the Principal and CEO, the Chief Financial Officer, the Assistant Principal School, the Assistant Principal College and the Assistant Principal Care.

Details of the key management personnel are shown on page 1.

The Trustees are responsible for determining and reviewing the pay and remuneration for members of the Senior Leadership Team.

During 2023/24 the Charity began a pay review, supported by an external agency. The pay review identified job roles and included a benchmarking exercise to identify the appropriate pay levels based on comparable roles in the Charity and Education sectors. As part of the process a framework was developed which will be used as the basis for pay reviews in subsequent years.

The Pay Review for the Senior Leadership Team, the Middle Leadership Team and all other staff roles was completed during the first term of 2024/25.

Risk management

The Trustees are responsible for the identification and management of risks affecting the Charity and have undertaken regular reviews of the risks associated with its activities. The budget process ensures that key risks are considered and resources allocated in response to these risks. The key controls used by the Charity include:

The Trustees and senior leaders regularly evaluate risk, focusing on the major aspects of operational, financial, governance, compliance and reputational risks. The work has given rise to steps and procedures to mitigate likely risks and to ensure regular monitoring of the primary areas of potential risk.

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Exeter Royal Academy for Deaf Education

Trustees' Report for the Year Ended 31 August 2025

The principal risks and uncertainties, together with a summary of how they are managed are set out below:

This risk recognises the potential impacts of Deaf young people being placed in inappropriate provision and pressure on fee income levels and placements due to government SEND reform and pressures on Local Authorities spending.

Student numbers and retention is a key part of the strategic plan and is monitored by the Senior Leadership team and the Finance and Resources Committee with regular detailed reviews by the Admissions group. Partnership work remains important and is being developed. An experienced marketing officer has been recruited to provide further capacity and expertise.

The Charity is regularly monitoring the position and in regular dialogue with Local Authorities, in particular with Devon County Council Commissioning and SEND teams and local councillors. We have staff skilled at Tribunal representation. The Charity completed a Fees Review in 2024/25 and implemented on a phased basis in 2025/26.

The Charity is a member of the National Association of Special Schools (NASS) and the National Association of Specialist Colleges (Natspec). Both organisations lobby government for better funding and provision for SEND. The Principal and CEO is South West Regional Chair for Natspec and is a member of the Board of Directors.

Maintaining the Quality of Care in Children’s Home

A key area of risk for the Charity remains maintaining the quality of care within the Children’s Home (Rolle House). In the year Ofsted issued a notice of compliance and rating of Requires Improvement. This risk reflects the potential for adverse impacts on young people’s experience, regulatory outcomes and reduction in income. To mitigate this risk, the Charity has implemented strengthened governance and quality assurance arrangements, including regular external independent visitors, a detailed action plan, an improvement partner and enhanced monitoring through senior leadership and the Care & Safeguarding Committee. A Strategic Care Review will commence in 2026.

Deterioration of financial position (Budget pressures, unsustainable deficit and significant cashflow concern)

There is a risk of significant deterioration in the financial position and cashflow instability. This risk arises from ongoing budget cost pressures such as increases in Employers National Insurance, the impact of the Pay Review, high costs of staff absence cover and the risk of reduction in income if student placement numbers decline.

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Exeter Royal Academy for Deaf Education

Trustees' Report for the Year Ended 31 August 2025

Mitigations include strengthened management accounts processes, regular reporting to Finance and Resources Committee and Board of Trustees, Senior Leadership Team oversight of staff absence expenditure, phased implementation of the revised fee model, exploration of a block placement agreement with Devon, increase of resource in the finance team, and consideration of a new finance system to improve financial reports. Cashflow remains a specific concern due to the potential impact of lower - than - expected admissions, Local Authorities shifting payment terms from advance to arrears, delays in fee payments, and VAT-related fluctuations. Controls include improved reserve levels (with freely available reserves recovered to £988k at 31/08/25), updated reserves policy, strengthened cashflow monitoring, use of an investment platform to maximise investment income and hold cash reserves, and completion of debt refinancing to stabilise liquidity.

Quality of Education & Care

The risk of not maintaining improvements/quality and retaining Good Ofsted ratings is addressed through monitoring of the School and College Improvement plan and is reviewed regularly by Education Standards Committee and supported by our Improvement Partner. Further assurance is provided by external quality assurance reviews through Challenge Partners Programme and Natspec. Care is monitored through the Children’s Home Governing Body and Care and Safeguarding committee in addition to a programme of regular independent visitor reports.

Campus and building capacity

There is a risk that the campus and buildings will not have sufficient capacity to meet student demand. The strategic plan envisaged that the site would reach full capacity by 2028; however, this capacity pressure is happening sooner. There are risks of insufficient number of spaces being available for new students (compounded by levels of complex needs, gender and age balances) or that the Charity is not able to adapt the physical environment to meet student needs.

Capacity is monitored by the Senior Leadership Team and the Admissions group. The increased residential capacity at Fearnside House is now full. The Charity is considering how capacity could best be increased, including assessing other means of supporting students through a Strategic Care Review.

Workforce Capacity (Retention and Recruitment)

There is a risk that the Charity will not be able to retain or recruit suitably qualified or experienced staff, especially to management and leadership roles. There is also a risk that the Charity will not be able to recruit and retain in sufficient numbers and at sufficient levels to support the rise in student numbers, especially as the needs of the student cohort increase in complexity. Costs of living increases, increases in the minimum wage, and the more general loss of staff in the education and care sectors also have an impact on retention and recruitment risk. The Trustees have recognised that, as the Charity’s workforce becomes more skilled and experienced and the Charity’s reputation grows, there is an increased risk that staff will receive employment offers from other organisations.

Recruitment and retention risks are mitigated by enhanced recruitment approaches, contingency arrangements to cover staff absences and the use of Staff surveys to identify and address issues and more recently a staff wellbeing day. A pay review was commissioned and implemented in 2024/25. A workforce development plan is being designed to support the strategic aim of being ‘a great place to work’.

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Trustees' Report for the Year Ended 31 August 2025

Other risks included on the risk register are:

Through the risk management process established by the Charity, the Trustees are satisfied that the major risks identified have been adequately mitigated where necessary. It is recognised that systems can provide reasonable but not absolute assurance that major risks have been adequately managed.

Fundraising

Fundraising is an important source of income to the Charity. During 2024/25 the combined operations of the Academy, Fearnside House and the Children’s Home was a deficit of £195k. The Charity has subsidised this deficit from legacy income, fundraising and from reserves.

Income from legacies continues to play a vital role in supporting the Deaf Academy’s charitable work. As with all legacy giving, it is impossible for us to predict who may choose to remember the Academy in their Will or the value of any future gifts, yet these gestures of kindness have had a profound and lasting impact. In recent years, the Academy has benefited significantly from the generosity of individuals who believed in our mission and chose to create a legacy that supports future generations of Deaf young people. These gifts have strengthened our ability to invest in essential projects, enhance - our facilities, and continue delivering high quality education, care and support.

The Charity received donations of £31k (2024 - £165k) and legacies of £97k (2024 - £200k) in the year which supported capital projects including the pedestrian road crossing, the sensory circuit/outdoor play area and funded the purchase of vibrating vests which allow the young people to ‘feel’ the sound at events. The Charity relies on donations to fund capital projects and provide additional services not funded by local authorities such as Sign Language weekends for families and carers of Deaf young people.

The Charity receives grants from the Education and Skills Funding Agency (ESFA), now the DFE. The Charity received grant income of £30k restricted for various projects as reported in note 15.

In 2026, the Charity will centre its fundraising efforts on the Bicentenary Legacy Fund, launched as part of the Deaf Academy’s 200th anniversary celebrations. This dedicated fund aims to secure long - term support for future generations of Deaf young people, helping to remove barriers and empower them to - achieve their aspirations. Alongside a year long programme of celebratory events and community engagement, the Charity will actively encourage donations, sponsorship and wider fundraising participation to build a lasting legacy that strengthens Deaf education for the next 200 years.

The Charity carries out fundraising through its website which contains a link to the Deaf Academy JustGiving page. The Deaf Academy JustGiving page invites private individuals and other organisations to donate or create their own fundraising page to support the Deaf Academy. Individuals also have the opportunity to make cash donations to collecting tins at events hosted by the Deaf Academy and at events hosted by other organisations at which the Deaf Academy has a presence. The Deaf Academy does not carry out door to door, street fundraising or direct mailings and does not employ any third parties to carry out fundraising activities on its behalf. Staff and students involved in events are aware of what would constitute unreasonably persistent approaches or placing undue pressure on a person for the purpose of soliciting donations at events. The Charity does not engage third party professional fundraisers.

15

Exeter Royal Academy for Deaf Education

Trustees' Report for the Year Ended 31 August 2025

Equality and Diversity

Respecting diversity is one of the Charity’s key values and we are committed to being an inclusive organisation where diversity is celebrated and valued.

The Charity strives to create a culture where mutual cooperation, respect, dignity and trust are fostered. The Charity will not tolerate unfair or unlawful treatment on the grounds of age, disability, gender, transgender, marital status, race, colour, ethnic origin, socioeconomic background, sexual orientation, nationality, trade union membership and activity, philosophical, political or religious beliefs or unbelief, and pregnancy or maternity.

The Charity’s Equality & Diversity Policy articulates this commitment and ensures that all staff, students and volunteers are treated fairly and have equal access to learning programmes, facilities and employment opportunities.

Going concern

At the date of approval of the accounts the Charity has an adequate level of cash reserves. Fee income is stable, student numbers have increased and applications for admission to the school and college rolls are growing. The new facilities at Fearnside House enable us to plan confidently for future growth. The Trustees have reviewed the cash forecasts and commitments and are satisfied there are adequate financing arrangements in place. Taking all these factors into consideration the Trustees consider that the Charity should continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Statement of Accounting Policies.

Financial review

Since relocating to the Exmouth campus in 2020, the Charity’s financial position strengthened year on year, with surpluses reported up to the 2023/24 financial year. This improvement was driven by growth in student numbers, legacy income, funding from charitable trusts and cost control. However, 2024/25 marked a downturn, with a deficit of £163k. This deficit was supported by fundraising and legacy income. The Charity continues to operate in a challenging funding environment, in which local authorities’ high needs budgets remain under significant pressure, while the Charity faces rising employment costs including increases to Employer’s National Insurance, the National Minimum Wage and the Pay Review.

The deficit reflects the reality that the fees paid by local authorities were not covering the full cost of delivering education, therapies and care. Increasing complexity in students’ needs, alongside rising operating costs, outpaced the fee levels previously in place. To address this, a comprehensive Fees Review was undertaken during 2024/25, assessing universal provision, student pathways, interventions and individual resource requirements. Revised fees were introduced for the 2025/26 academic year on a phased basis and are expected to support a return to a financially sustainable operating position.

The Charity remains reliant on fundraising through Trusts and legacies to support capital investment and maintain the quality of its facilities, ensuring it can continue to meet growing demand for student places. Legacy and Trust income reduced considerably in 2024/25, falling from £365k in 2023/24 to £128k in 2024/25. A significant annual depreciation charge of £741k was also incurred due to the five year depreciation period on the plant and equipment in the purpose built Academy campus. The depreciation charge will reduce in 2026.

The cash position increased by £403k at the year end; partly due to a higher level of fees paid in advance compared to the previous year. The Charity has structured long-term loan finance with CAF Bank. In addition, the Charity made the first loan repayment of £100k in 2024/25 for the unsecured loan repayable over a 5 year period from 2025 to 2029.

16

Exeter Royal Academy for Deaf Education

Trustees' Report for the Year Ended 31 August 2025

Freely available reserves at the balance sheet date were £988k, calculated as unrestricted current assets and investments less unrestricted current liabilities and designated funds. Total reserves decreased by £163k during the year ended 31 August 2025, reflecting the operating deficit of £172k offset by £9k gains on investments and fixed asset disposals.

Reserves policy

The Trustees have reviewed the Charity’s needs for reserves in line with the guidance issued by the Charity Commission. The target level of reserves is set after considering the key risks facing the Charity and the regular financial forecasts prepared by management. The level is reviewed annually by Trustees. We aim to maintain sufficient reserves to enable us to carry on our work when faced with difficult circumstances and to adjust our strategy in response, while ensuring we maximise the resources readily available for charitable purposes. Our primary operating funding comes from local authorities and is reasonably foreseeable in the short term. This, together with the significant value of our freehold premises and expectation that we will continue as a going concern, is such that we do not provide reserves for cessation or the impact of our share of the deficits of the defined benefit pension scheme.

The Trustees reviewed the freely available reserves during 2024/25 and consider that the Charity should hold a freely available reserves of at least £1m with a target to increase this to £1.4m. The Charity had £988k of freely available reserves at the 2024/25 balance sheet date which was slightly below the minimum level of £1m. The Trustees recognise that these reserves are lower than the £1.4m target because they have been impacted by the deficit position in 2024/25. The target will remain and the phased implementation of the fees review will support this target.

Investment policy

The objective of the investment policy is to maximise the total return of the funds whilst avoiding undue risk. The investment policy and investments held by the Charity will continue to be reviewed annually.

Investment performance

The investments are held within Common Investment Funds and are divided between Fixed Interest and Equity shares. The market value of investments at the balance sheet date was £64k. These funds have produced an income of £2.8k for the reporting period.

The Trustees' Report was approved by order of the Board of Trustees on 12 February 2026 and was signed on its behalf by:

Dame A Pedder DBE Chair

17

Exeter Royal Academy for Deaf Education

Statement of Trustees' Responsibilities

The Trustees (who are the directors of the charitable company for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and the applicable law and regulations.

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

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

In so far as the trustees are aware:

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.

18

Exeter Royal Academy for Deaf Education

Independent Auditor's Report on the Financial Statements to the Members of Exeter Royal Academy for Deaf Education

Opinion

We have audited the financial statements of Exeter Royal Academy for Deaf Education (the ‘Charity') for the year ended 31 August 2025, which comprise the Statement of Financial Activities incorporating Income and Expenditure Account, Balance Sheet, Statement of Cash Flows and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards including FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

19

Exeter Royal Academy for Deaf Education

Independent Auditor's Report on the Financial Statements to the Members of Exeter Royal Academy for Deaf Education (continued)

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

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

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

Responsibilities of Trustees

As explained more fully in the Statement of Trustees' Responsibilities set out on page 18, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’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.

20

Exeter Royal Academy for Deaf Education

Independent Auditor's Report on the Financial Statements to the Members of Exeter Royal Academy for Deaf Education (continued)

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:

As part of our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to the Charity and the industry/ sector in which it operates to identify the key laws and regulations affecting the entity. As part of this assessment process we held discussions with management.

We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, primarily FRS 102 (effective 1 January 2019) - (Charities SORP), the Companies Act 2006 and the Charities Act 2011.

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 may be fundamental to the Charity’s ability to operate or to avoid a material penalty.

We discussed with management how the compliance with these laws and regulations in monitored and discussed policies and procedures in place.

We also identified the individuals who have responsibility for ensuring that the Charity complies with laws and regulations and deals with reporting any issues if they arise.

As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the Charity’s ability to continue trading and the risk of material misstatement to the accounts.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures included the following:

As part of our enquiries we discussed with management whether there have been any known instances, allegations or suspicions of fraud and were told there were none.

We also evaluated the risk of fraud through management override including that arising from management’s incentives. The key risks we identified were the manipulation of the financial statements (including the risk of override of controls) and we determined that the principal risks were related to fraudulent financial reporting, in particular to fraud in revenue recognition and grant funding received.

In response to the identified risk, as part of our audit work we:

21

Exeter Royal Academy for Deaf Education

Independent Auditor's Report on the Financial Statements to the Members of Exeter Royal Academy for Deaf Education (continued)

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. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate omissions, collusion, forgery, misrepresentations, or the override of internal controls. We are also less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements .

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.

Use of our report

This report is made solely to the Charity'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 Charity'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 Charity and its Members as a body, for our audit work, for this report, or for the opinions we have formed.

Martin Hobbs BSc ACA (Senior Statutory Auditor) PKF Francis Clark, Statutory Auditor

Sigma House Oak View Close Edginswell Park Torquay Devon TQ2 7FF

Date: 24 February 2026

22

Exeter Royal Academy for Deaf Education

Statement of Financial Activities for the Year Ended 31 August 2025 (including Income and Expenditure Account)

Note
Income from:
Donations and grants
2
Charitable activities:
Academy and children’s home operations
Other trading activities
3
Investments
4
Other income
5
Total
Expenditure on:
Charitable activities:
Academy and children’s home operations
Total
6
Net expenditure
Transfers between funds
Other recognised gains and losses
Gains on investment assets
Gains on disposal of tangible fixed assets
Actuarial losses on defined benefit pension
schemes
Net movement in funds
Reconciliation of funds
Total Funds brought forward at 1 September
2024
Total Funds carried forward at 31 August
2025		 Unrestricted
Funds
£
Restricted
Funds
£
Total
2025
£
300,484
54,987
355,471
8,512,315
-
8,512,315
18,682
-
18,682
41,385
-
41,385
91,492
-
91,492
8,964,358
54,987
9,019,345
9,072,063
61,037
9,133,100
9,072,063
61,037
9,133,100
(107,705)
(6,050)
(113,755)
-
-
-
3,126
-
3,126
6,330
-
6,330
(59,000)
-
(59,000)
(157,249)
(6,050)
(163,299)
17,191,837
62,489
17,254,326
17,034,588
56,439
17,091,027

23

Exeter Royal Academy for Deaf Education

Statement of Financial Activities for the Year Ended 31 August 2024 (including Income and Expenditure Account)

Note
Income from:
Donations and grants
2
Charitable activities:
Academy and children’s home operations
Other trading activities
3
Investments
4
Other income
5
Total
Expenditure on:
Charitable activities:
Academy and children’s home operations
Total
6
Net income
Transfers between funds
Other recognised gains and losses
Gains on investment assets
Gains on disposal of tangible fixed assets
Actuarial losses on defined benefit pension
schemes
Net movement in funds
Reconciliation of funds
Total Funds brought forward at 1 September
2023
Total Funds carried forward at 31 August
2024		 Unrestricted
Funds
£
Restricted
Funds
£
Total
2024
£
364,233
175,343
539,576
7,199,551
-
7,199,551
48,825
-
48,825
26,173
-
26,173
69,056
-
69,056
7,707,838
175,343
7,883,181
7,626,453
47,288
7,673,741
7,626,453
47,288
7,673,741
81,385
128,055
209,440
233,461
(233,461)
-
3,344
-
3,344
1,679
-
1,679
(61,000)
-
(61,000)
258,869
(105,406)
153,463
16,932,968
167,895
17,100,863
17,191,837
62,489
17,254,326

24

Exeter Royal Academy for Deaf Education

(Registration number: 06585703) Balance Sheet as at 31 August 2025

Note
Fixed assets
Tangible assets
10
Investments
11
Current assets
Debtors
12
Cash at bank and in hand
Creditors: Amounts falling due within one year
13
Net current assets
Total assets less current liabilities
Creditors: Amounts falling due after more than one year
14
Net assets excluding pension liability
Pension scheme liability
23
Net assets after pension liability
Funds:
Restricted funds
Unrestricted funds
Revaluation fund
Capital fund
Legacy fund
Designated fund
Other freely available reserves
Total funds		 2025
£
2024
£
17,654,587
18,190,104
63,977
60,851
17,718,564
18,250,955
541,304
351,947
1,770,633
1,367,720
2,311,937
1,719,667
(1,244,504)
(849,966)
1,067,433
869,701
18,785,997
19,120,656
(1,694,970)
(1,866,330)
17,091,027
17,254,326
-
-
17,091,027
17,254,326
56,439
62,489
92,552
90,048
15,837,004
16,198,805
-
50,000
117,010
-
988,022
852,984
17,034,588
17,191,837
17,091,027
17,254,326

The financial statements were approved by the Trustees, and authorised for issue on 12 February 2026 and signed on their behalf by:

Mr A Collyer Trustee

25

Exeter Royal Academy for Deaf Education

Statement of Cash Flows for the Year Ended 31 August 2025

Note
Net cash flows from operating activities
18
Net cash flows from investing activities
19
Net cash flows from financing activities
20
Increase / (Decrease) in cash in the year
21		 2025
£
2024
727,100
153,304
(157,653)
(161,343)
(166,534)
(66,784)
402,913
(74,823)

26

Exeter Royal Academy for Deaf Education

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

1 Accounting policies

Statement of accounting policies

A summary of the principal accounting policies adopted (which have been applied consistently, except where noted), judgements and key sources of estimation uncertainty, is set out below.

Basis of preparation

The financial statements have been prepared under the historical cost convention with items being recognised at cost or transaction value unless otherwise stated in the notes to these accounts.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019) – (Charities SORP (FRS 102)), and with the requirements of the Companies Act 2006.

The Charity constitutes a public benefit entity as defined by FRS102.

The Charity is incorporated in England and Wales. The address of its registered office is given on page 1.

The Trustees consider that there are no material uncertainties about the Charity’s ability to continue as a going concern.

The functional and presentational currency is sterling.

Income

All incoming resources are recognised when the Charity has entitlement to the funds, receipt is probable and the amount can be measured with sufficient reliability.

Grants

Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the balance sheet. Where income is received in advance of entitlement of receipt its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Donations

Donations and legacies are recognised on a receivable basis where there is probability of receipt and the amount can be reliably measured.

27

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2025 (continued)

1 Accounting policies (continued)

Other income

Fees receivable and charges for services are accounted for in the period in which the service is provided.

Expenditure

Expenditure is 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. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

All resources expended are inclusive of irrecoverable VAT.

Expenditure on raising funds

These are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

Charitable activities

These are costs incurred on the Academy & Children’s Home operations.

Tangible fixed assets

Assets costing £1,000 or more are capitalised as tangible fixed assets and are carried at cost, net of depreciation and any provision for impairment. Where tangible fixed assets have been acquired with the aid of specific grants, either from the government or from the private sector, they are included in the Balance Sheet at cost and depreciated over their expected useful economic life.

Depreciation is provided on all tangible fixed assets other than freehold land and assets under the course of construction, at rates calculated to write off the cost of each asset over its expected useful lives, per the table below.

All fixed assets are initially recorded at cost, except for freehold and leasehold properties acquired before 31 August 2015. Up to and including 31 August 2015 it was the Trustees' policy to revalue freehold properties at depreciated replacement cost in the accounts due to the specialised nature of the asset as a result of the services provided by the Charity. The Trustees adopted the transitional provisions of FRS 102, which provide that companies do not have to revalue tangible fixed assets. Previous valuations have been retained as deemed cost and have not been updated.

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of Financial Activities.

28

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2025 (continued)

1 Accounting policies (continued)

Asset class Depreciation method and rate Freehold buildings 50 years straight line Plant and equipment 20% straight line Motor vehicles 20% straight line

Liabilities

Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions

Provisions are recognised when the Charity has an obligation at the reporting date as a result of a past event which it is probable will result in the transfer of economic benefits and the obligation can be estimated reliably.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.

Leased assets

The costs of operating leases are charged to the Statement of Financial Activities on a straight line basis over the lease term.

Investments

Fixed asset investments are included at market value at the balance sheet date.

Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the statement of financial activities in the year of disposal. Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the statement of financial activities based on the market value at the year end.

Stock

Stock and work in progress is valued at the lower of cost or net realisable value.

Financial Instruments

The Charity only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the Charity and their measurement basis are as follows:

Financial assets - trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments.

Cash at bank - is classified as a basic financial instrument and is measured at face value.

29

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2025 (continued)

1 Accounting policies (continued)

Financial liabilities - trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition. Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument. Bank loans are initially measured at transaction price, including transaction costs, are subsequently carried at amortised costs using the effective interest method except to the extent that finance costs are immaterial.

Taxation

The Charity is exempt from taxation to the extent that its income and gains are applied exclusively for charitable purposes.

Pension benefits

Retirement benefits to employees of the Charity are provided by the Teachers’ Pension Scheme (‘TPS’) and the Local Government Pension Scheme (‘LGPS’). These are defined benefit schemes and the assets are held separately from those of the Charity. The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees’ working lives with the Charity in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The contributions are determined by the Government Actuary on the basis of quadrennial valuations using a prospective unit credit method. As stated in the notes to the financial statements, the TPS is an unfunded multi-employer scheme with no underlying assets to assign between employers. The TPS is therefore treated as a defined contribution scheme for accounting purposes and the contributions recognised in the period to which they relate.

The LGPS is a funded scheme and the assets are held separately from those of the Charity in separate trustee administered funds. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the prospective unit credit method and discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent term and currency to the liabilities. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The amounts charged to operating surplus are the current service costs and the costs of scheme introductions, benefit charges, settlements and curtailments. They are included as part of staff costs as incurred. Net interest on the net defined benefit liability/asset is also recognised in the statement of financial activities and comprises the interest cost on the defined benefit obligation and interest income on the scheme assets, calculated by multiplying fair value of the scheme assets at the beginning of the period by the rate used to discount the benefit obligations. The difference between the interest income on the scheme assets and the actual return on the scheme assets is recognised in other recognised gains and losses.

The Charity also operates a defined contribution pension scheme for certain employees. The assets of the scheme are held separately from those of the Charity and are independently administered. The amount charged to the SOFA represents the contributions payable to the scheme in respect of the year.

Fund accounting

Unrestricted income funds represent those resources which may be used towards meeting any of the charitable objects of the Charity at the discretion of the Trustees. The Capital Fund represents the net book value of the unrestricted Fixed Assets less the loans due over more than one year.

The Charity has several restricted funds. Details of the nature of these funds are given in note 15.

30

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2025 (continued)

1 Accounting policies (continued)

Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions

The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

The present value of the Local Government Pension Scheme defined benefit liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost (income) for pensions include the discount rate. Any changes in these assumptions, which are disclosed in note 23, will impact the carrying amount of the pension liability. Furthermore a roll forward approach which projects results from the latest full actuarial valuation performed at 31 March 2022 has been used by the actuary in valuing the pensions liability at 31 August 2025. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of the pension liability.

2 Donations and grants

2
Donations and grants
Grants
Donations and fundraising
Legacies		 Unrestricted
funds
£
Restricted
funds
£
Total
2025
£
Total
2024
£
197,960
29,768
227,728
174,129
5,514
25,219
30,733
165,447
97,010
-
97,010
200,000
300,484
54,987
355,471
539,576

3 Other trading activities

3
Other trading activities
Hire of facilities
Other income		 Unrestricted
funds
£
Restricted
funds
£
Total
2025
£
Total
2024
£
1,505
-
1,505
4,056
17,177
-
17,177
44,769
18,682
-
18,682
48,825

31

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2025 (continued)

(continued)
4
Investment income
Unrestricted Total Total
funds 2025 2024
£ £ £
Bank interest receivable 38,563 38,563 23,206
Other investment income 2,822 2,822 2,967
41,385 41,385 26,173
5
Other income
Unrestricted Total Total
funds 2025 2024
£ £ £
Pupil Premium Income 9,090 9,090 9,790
Other Educational Fees 82,402 82,402 59,266
91,492 91,492 69,056
6
Expenditure
Total Total
Staff costs Premises Other costs 2025 2024
£ £ £ £ £
Charitable activities:
Academy
&
Children’s Home
operations
Direct costs
5,369,086		 - 393,555 5,762,641 4,555,840
Allocated support
costs
1,265,075		 1,278,518 826,866 3,370,459 3,117,901
6,634,161 1,278,518 1,220,421 9,133,100 7,673,741
Net income for the year is after charging:
2025 2024
£ £
Fees payable to auditor - audit services 19,856 17,865
Fees payable to auditor - other services 18,518 13,473
Operating leases 54,605 73,328
Interest paid 109,383 124,723

32

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2025 (continued)

7 Charitable activities

Direct costs
Support costs
Analysis of support costs
Support staff costs
Depreciation
Premises costs
Other support costs
Total support costs
8
Staff
Staff costs during the year were:
Wages and salaries
Social security costs
Pension costs		 Total
2025
£
Total
2024
£
5,762,641
4,555,840
3,370,459
3,117,901
9,133,100
7,673,741
Total
2025
£
Total
2024
£
1,265,075
1,042,217
740,885
718,568
537,633
525,569
826,866
831,547
3,370,459
3,117,901
2025
£
2024
£
5,460,106
4,382,743
541,588
379,001
632,463
487,770
6,634,157
5,249,514

33

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2025 (continued)

8 Staff (continued)

The average number of persons (including senior management team) employed by the Charity during the year expressed as average headcount was as follows:

Charitable Activities
Teachers & Education Support
Care
Support, Estates, Fundraising & Marketing		 2025
No
2024
No
103
90
50
42
37
34
190
166

Higher paid staff

The number of employees whose emoluments (excluding employer pension costs) exceeded £60,000 was:

was:
2025 2024
No No
£60,001 - £70,000 3 1
£70,001 - £80,000 1 -
£90,001 - £100,000 1 1

The key management personnel of the Charity are as listed on page 1. The total amount of employee benefits (including employer pension contributions and employer national insurance contributions) received by key management personnel for their services to the Charity was £222,071 (2024 - £207,888).

9 Trustees' remuneration and expenses

The Trustees have not received any remuneration from the charity during the year.

As permitted by the Memorandum and Articles of Association, during the year ended 31 August 2025 travel and subsistence expenses totalling £nil (2024 - £20) were reimbursed or paid directly to trustees (2024 - one).

34

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2025 (continued)

10 Tangible fixed assets

Current year
Cost
At 1 September
2024
Additions
Disposals
At 31 August 2025
Depreciation
At 1 September
2024
Charge for the year
Eliminated on
disposals
At 31 August 2025
Net book value
At 31 August 2025
At 31 August 2024		 Freehold land
and buildings
£
Plant and
equipment
£
Motor vehicles
£
Total
£
18,667,235
2,363,922
169,624 21,200,781
-
163,179
42,189
205,368
-
-
(25,801)
(25,801)
18,667,235
2,527,101
186,012
21,380,348
1,176,173
1,722,570
111,934
3,010,677
320,577
392,650
27,658
740,885
-
-
(25,801)
(25,801)
1,496,750
2,115,220
113,791
3,725,761
17,170,485
411,881
72,221
17,654,587
17,491,062
641,352
57,690
18,190,104

35

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2025 (continued)

10 Tangible fixed assets

Cost
At 1 September
2023
Additions
Disposals
At 31 August 2024
Depreciation
At 1 September
2023
Charge for the year
Eliminated on
disposals
At 31 August 2024
Net book value
At 31 August 2024
At 31 August 2023		 Freehold land
and buildings
£
Plant and
equipment
£
Motor vehicles
£
Total
£
18,657,438
2,227,557
154,077
21,039,072
9,797
141,448
38,420
189,665
-
(5,083)
(22,873)
(27,956)
18,667,235
2,363,922
169,624 21,200,781
855,594
1,357,519
106,482
2,319,595
320,579
369,665
28,324
718,568
-
(4,614)
(22,872)
(27,486)
1,176,173
1,722,570
111,934
3,010,677
17,491,062
641,352
57,690
18,190,104
17,801,844
870,038
47,595
18,719,477

36

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2025 (continued)

11 Investments

Quoted Investments
Market value brought forward
Revaluation
Market value carried forward
Historical cost
12 Debtors: amounts due within one year
Trade debtors
Prepayments
Other debtors		 2025
£
60,851
3,126
63,977
33,402
2025
£
327,883
70,359
143,062		 2024
£
57,507
3,344
60,851
33,402
2024
£
184,712
68,979
98,256
541,304 351,947

37

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2025 (continued)

13 Creditors: amounts falling due within one year

Trade creditors
Other taxation and social security
Bank loans
Other loans
Other creditors
Accruals and deferred income
The movement in deferred income for the year is as follows:
At 1 September 2024
Amount deferred in the year
Amount released from previous years
At 31 August 2025		 2025
£
2024
£
571,492
324,896
167,758
87,426
68,464
63,638
100,000
100,000
50,360
47,772
286,430
226,234
1,244,504
849,966
2025
£
2024
£
153,154
72,576
214,128
153,154
(153,154)
(72,576)
214,128
153,154

14 Creditors: amounts falling due after more than one year

Bank loans
Other loans		 2025
£
2024
£
1,394,970
1,466,330
300,000
400,000
1,694,970
1,866,330

Bank loans of £1,463,434 (due less than and over one year) are secured by a charge over the charity’s property and due for repayment over 15 years from the first repayment date, beginning in May 2023. Other loans totalling £400,000 are unsecured and due for repayment in instalments from 2025 to 2029.

Creditors falling due after more than five years total £1,059,574 (2024 - £1,154,404).

38

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2025 (continued)

15 Funds

Current year:
Restricted funds
WK Hutchings Family Support
Andrew Kensit Cup
Audio Visual Equipment
ICT Suite
Residential Flats
School Classroom
Dorothy Hird Trust
Margaret Ann Robinson Award
Outdoor Classroom
Pedestrian Road Crossing
Sensory Circuit / Outdoor Play
Vibrating Backpacks
Active Devon
Other restricted funds
Total restricted funds
Unrestricted funds
Revaluation fund
Capital fund
Legacy fund
Designated fund
Other unrestricted funds
Total unrestricted funds
Total funds		 Balance at 1
September
2024
£
Income
£
Expenditure
£
Gains,
losses and
transfers
£
Balance at
31 August
2025
£
-
3,503
(3,503)
-
-
12,000
-
(500)
-
11,500
4,521
-
(3,654)
-
867
7,815
-
(7,815)
-
-
4,500
-
(4,500)
-
-
3,082
-
(3,082)
-
-
3,000
-
(1,000)
-
2,000
9,000
-
(500)
-
8,500
12,000
-
(3,000)
-
9,000
6,571
16,174
(4,549)
-
18,196
-
6,086
-
-
6,086
-
3,794
(3,794)
-
-
-
10,559
(10,559)
-
-
-
14,871
(14,581)
-
290
62,489
54,987
(61,037)
-
56,439
90,048
-
-
2,504
92,552
16,198,805
-
(736,028)
374,227
15,837,004
50,000
-
(50,000)
-
-
-
117,010
-
-
117,010
852,984
8,847,348
(8,286,035)
(426,275)
988,022
17,191,837
8,964,358
(9,072,063)
(49,544)
17,034,588
17,254,326
9,019,345
(9,133,100)
(49,544)
17,091,027

The restricted funds are set up for the following purposes:

WK Hutchings Family Support – To enable sign language weekends to be delivered to families and friends of Deaf children and professionals who work with Deaf children. To provide transitional support for student leavers.

Andrew Kensit Cup – In memory of student Andrew Kensit, each year a student will be awarded the Cup and a bursary.

Dorothy Hird Trust – To provide the ‘sensory nook’ at the Children’s Home

39

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2025 (continued)

15 Funds (continued)

Margaret Ann Robinson Award – In memory of Margaret Ann Robinson, each year a student who has helped others or the local community will receive an award from the fund.

Outdoor Classroom – To provide an accessible outside classroom space. This space increases the classroom capacity and allows learning during all weather conditions. Students can also access the outdoor classroom for social activities during break times.

Pedestrian Road Crossing – To contribute to the cost of improving road safety outside the Academy gates along Douglas Avenue. The puffin crossing includes high friction road surfacing and advanced warning signing on both approaches. It also has visual, tactile and audible pedestrian indicators to help staff, students and other road users to cross safely.

Sensory circuit/Outdoor Play – To transform an outdoor space into a stimulating new sensory play area. This has been designed by teaching and therapy specialists to support Deaf young people with additional needs; with equipment and spaces that promote educational, physical, social development and wellbeing.

Vibrating Backpacks – To enable our students to experience the world of music. The backpacks are equipped with vibrational sensors so students can experience music and sound through the vibrations and appreciate the sound effects in films and live performances.

Active Devon – To enhance the Academy's sports facilities in order to increase opportunities for students to have access to a wide range of sports that support their physical and social development and wellbeing.

Other restricted funds – Various smaller projects, mainly in connection with video technology, ICT, sports & PE, sailing and curriculum activities.

Unrestricted designated fund

All Legacies (other than Restricted Funds) are added to the Legacy Fund on a receivable basis where there is probability of receipt and the amount can be reliably measured. The Legacy Fund is a designated fund. The Board of Trustees designates funds from the Legacy Fund to specific projects based on the list of planned projects and compiled and monitored by the Charity’s Fundraising Group.

40

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2025 (continued)

15 Funds (continued)

Current year:
Restricted funds
WK Hutchings Family Support
Andrew Kensit Cup
Audio Visual Equipment
ICT Suite
Residential Flats
School Classroom
Dorothy Hird Trust
Margaret Ann Robinson Award
Adult Residential and Bradbury
Learning Centre
Outdoor Classroom
Pedestrian Road Crossing
Vibrating Backpacks
Other restricted funds
Total restricted funds
Unrestricted funds
Revaluation fund
Other unrestricted funds
Total unrestricted funds
Total funds		 Balance at 1
September
2023
£
Income
£
Expenditure
£
Gains,
losses and
transfers
£
Balance at
31 August
2024
£
-
6,000
(6,000)
-
-
12,500
-
(500)
-
12,000
8,175
-
(3,654)
-
4,521
15,095
-
(7,280)
-
7,815
9,000
-
(4,500)
-
4,500
6,164
-
(3,082)
-
3,082
4,000
-
(1,000)
-
3,000
9,500
-
(500)
-
9,000
103,461
132,000
(2,000)
(233,461)
-
-
15,000
(3,000)
-
12,000
-
6,571
-
-
6,571
-
3,000
(3,000)
-
-
-
12,772
(12,772)
-
-
167,895
175,343
(47,288)
(233,461)
62,489
87,326
-
-
2,722
90,048
16,845,642
7,707,838
(7,626,453)
174,762
17,101,789
16,932,968
7,707,838
(7,626,453)
177,484
17,191,837
17,100,863
7,883,181
(7,673,741)
(55,977)
17,254,326

The restricted funds are set up for the following purposes:

WK Hutchings Family Support - To enable sign language and support to be delivered to families and to support keeping in touch with students, supporting our Online Academy and transitional support for student leavers.

Andrew Kensit Cup - In memory of student Andrew Kensit, each year a student will be awarded the Cup and a bursary.

Dorothy Hird Trust – To provide the “sensory nook” at the children’s home.

Adult Residential & Learning Centre – To enable a visionary new residential provision as an extension to the main campus, giving our young adult students the support they need to prepare them for independent living and work.

Margaret Ann Robinson Award – In memory of Margaret Ann Robinson, each year a student who has helped others or the local community will receive an award from the fund.

41

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2025 (continued)

15 Funds (continued)

Outdoor Classroom – To provide an accessible outside classroom space. This space increases the classroom capacity and allows learning during all weather conditions. Students can also access the outdoor classroom for social activities during break times.

Pedestrian Road Crossing – To contribute to the cost of improving road safety outside the Academy gates along Douglas Avenue. The puffin crossing includes high friction road surfacing and advanced warning signing on both approaches. It also has visual, tactile and audible pedestrian indicators to help staff, students and other road users to cross safely.

Vibrating Backpacks – To enable our students to experience the world of music. The backpacks are equipped with vibrational sensors so students can experience music and sound through the vibrations and appreciate the sound effects in films and live performances.

Other restricted funds – Various smaller projects, mainly in connection with video technology, ICT, sports & PE, sailing and curriculum activities.

42

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2025 (continued)

16 Analysis of net assets between funds

Fund balances at 31 August 2025 are represented by:

Tangible fixed assets
Investments
Current assets
Current liabilities
Creditors due after more than one
year
Total net assets		 Unrestricted
funds
(general)
£
Unrestricted
funds
(designated)
£
Restricted
funds
£
Total funds
£
17,624,524
-
30,063
17,654,587
63,977
-
-
63,977
2,168,551
117,010
26,376
2,311,937
(1,244,504)
-
-
(1,244,504)
(1,694,970)
-
-
(1,694,970)
16,917,578
117,010
56,439
17,091,027

Fund balances at 31 August 2024 are represented by:

Tangible fixed assets
Investments
Current assets
Current liabilities
Creditors due after more than one year
Total net assets		 Unrestricted
funds
£
Restricted
funds
£
Total funds
£
18,155,183
34,921
18,190,104
60,851
-
60,851
1,692,099
27,568
1,719,667
(849,966)
-
(849,966)
(1,866,330)
-
(1,866,330)
17,191,837
62,489
17,254,326

Freely Available Reserves

The freely available reserves for the charity represent unrestricted general net current assets and investments. The freely available reserves at 31 August 2025 were £988,022 (2024: £902,984).

43

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2025 (continued)

17 Commitments under operating leases

Operating leases

At 31 August 2025 the Charity had total future commitments under non-cancellable operating leases as follows:

Operating leases which expire:

Operating leases which expire:
Within one year
After more than one year but within five years
After more than five years		 2025
£
2024
£
65,264
74,084
213,218
191,558
521,245
549,254
799,727
814,896

18 Reconciliation of net income to net cash flows from operating activities

Net (expenditure) / income
Depreciation
Investment income
Difference between pension scheme charges
and contributions paid
Increase in debtors
Increase / (decrease) in creditors
Net cash flows from operating activities		 2025
£
2024
£
(113,755)
209,440
740,885
718,568
(41,385)
(26,173)
(59,000)
(61,000)
(189,357)
(238,413)
389,712
(449,118)
727,100
153,304

44

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2025 (continued)

19 Cash flows from investing activities

19 Cash flows from investing activities
Purchase of tangible fixed assets
Proceeds from the sale of tangible fixed assets
Investment income
Net cash flows from investing activities
20 Cash flows from financing activities
Repayment of borrowings
Repayment of finance lease liabilities
Net cash flows from financing activities		 2025
£
2024
£
(205,368)
(189,665)
6,330
2,149
41,385
26,173
(157,653)
(161,343)
2025
£
2024
£
(166,534)
(58,484)
-
(8,300)
(166,534)
(66,784)

21 Analysis of changes in net debt

Cash at bank and in hand
Loans falling due within one year
Loans falling due after more than one year		 At 1
September
2024
£
Cash flows
£
Non-cash
changes
£
At 31
August
2025
£
1,367,720
402,913
-
1,770,633
(163,638)
166,534
(171,360)
(168,464)
(1,866,330)
-
171,360
(1,694,970)
(2,029,968)
166,534
-
(1,863,434)
(662,248)
569,447
-
(92,801)

45

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2025 (continued)

22 Members' liability

The company is limited by guarantee and has no share capital. In the event of a winding up the liability of the members is limited to £1 each.

23 Pension and similar obligations

The Charity’s employees belong to three principal pension schemes: the Teachers’ Pension Scheme England and Wales (TPS) for academic and related staff, the Local Government Pension Scheme (LGPS) for non-teaching staff, and Aegon. Both the TPS and the LGPS are multi-employer defined benefit schemes; Aegon is a defined contribution pension scheme.

The latest actuarial valuation of the TPS related to the period ended 31 March 2020 and of the LGPS 31 March 2022.

Contributions amounting to £70,690 were payable to the schemes at 31 August 2025 (2024: £62,344) and are included within creditors.

Teachers' Pension Scheme

Introduction

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

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

Valuation of the Teachers' Pension Scheme

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

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

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

46

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2025 (continued)

23 Pension and similar obligations (continued)

The employer’s pension costs paid to TPS in the year amounted to £266,105 (2024 - £196,503). A copy of the valuation report and supporting documentation is on the Teachers’ Pensions website.

Under the definitions set out in FRS 102, the TPS is an unfunded multi-employer pension scheme. The Charity is unable to identify its share of the underlying assets and liabilities of the plan. Accordingly, the Charity has taken advantage of the exemption in FRS 102 and has accounted for its contributions to the scheme as if it were a defined contribution scheme. The Charity has set out above the information available on the scheme.

Local government pension scheme

The LGPS is a funded defined-benefit scheme, with the assets held in separate trustee-administered funds. The total contribution made for the year ended 31 August 2025 was £157,000 (2024 - £146,000), of which employer's contributions totalled £131,000 (2024 - £122,000) and employees' contributions totalled £26,000 (2024 - £24,000). The agreed contribution rates for future years are 22.3% for employers plus an additional top up for the past service deficit of £46,000 per annum and 5.5% to 12.5% for employees.

Principal actuarial assumptions

Principal actuarial assumptions
At 31 August At 31 August
2025 2024
% %
Rate of increase in salaries 3.5 3.85
Rate of increase for pensions in payment/inflation 2.5 2.85
Discount rate for scheme liabilities 5.95 5.05

The current mortality assumptions include sufficient allowance for future improvements in the mortality rates. The assumed life expectations on retirement age 65 are:

At 31 August At 31 August
2025 2024
Retiring today
Males retiring today 21.3 21.4
Females retiring today 24.0 22.7
Retiring in 20 years
Males retiring in 20 years 22.9 22.7
Females retiring in 20 years 25.7 24.1

47

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2025 (continued)

23 Pension and similar obligations (continued)

Sensitivity analysis on present value of scheme obligations

At 31 August At 31 August
2025 2024
£ £
Discount rate +0.1% 8,501,000 9,812,000
Discount rate -0.1% 8,772,000 10,160,000
Mortality assumption + 1 year increase 8,863,000 10,293,000
Mortality assumption – 1 year decrease 8,413,000 9,685,000
CPI rate +0.1% 8,768,000 10,153,000
CPI rate -0.1% 8,505,000 9,819,000

The actual return on scheme assets was positive £802,000 (2024 – positive £1,167,000).

Amounts recognised in the statement of financial activities

Amounts recognised in the statement of financial activities
Current service cost
Net interest income
Admin expenses
Total amount recognised in the SOFA		 2025
£
2024
£
67,000
57,000
(3,000)
(3,000)
8,000
7,000
72,000
61,000

Changes in the present value of defined benefit obligations were as follows:

At start of period
Current service cost
Interest cost
Admin expenses
Employee contributions
Actuarial (gain)/loss
Change in demographic assumptions
Experience loss/(gain) on defined benefit obligations
Benefits paid
At 31 August		 2025
£
2024
£
9,984,000
9,388,000
67,000
57,000
490,000
484,000
8,000
7,000
26,000
24,000
(2,051,000)
354,000
301,000
(21,000)
81,000
(47,000)
(271,000)
(262,000)
8,635,000
9,984,000

48

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2025 (continued)

23 Pension and similar obligations (continued)

Changes in the fair value of Charity’s share of scheme assets:

Changes in the fair value of Charity’s share of scheme assets:
At start of period
Interest income
Actuarial gain
Employer contributions
Employee contributions
Benefits paid
At 31 August
(Surplus)		 2025
£
2024
£
10,657,000
9,613,000
527,000
499,000
267,000
661,000
131,000
122,000
26,000
24,000
(271,000)
(262,000)
11,337,000
10,657,000
(2,702,000)
(673,000)

(Surplus)

As at 31 August 2025, the actuarial valuation for the Charity includes a surplus totalling £2,702,000 (2024: £673,000). This surplus has not been recognised within the financial statements.

High UK corporate bond yields have resulted in high accounting discount rates which contributed to the closing surplus position. There is no specific guidance in FRS 102 in relation to surplus balances, therefore reference has been made to IAS 19. This requires any surplus recognition to be limited to the present value of economic benefits available in the form of either refunds or reduced future contributions (the asset ceiling).

The right to a refund would occur in the form of a credit payable to the Charity, for example on exiting the pension fund. Whether any refund is provided is governed by Regulation 64 of the 2013 Local Government Pension Scheme Regulations and set out in the specific local authority funding strategy statement. The payment of this credit is at the discretion of the local authority based on a variety of predetermined factors. Given there are no circumstances to suggest an exit from the fund and the determination of any credit is outside the control of the Charity, there is no basis to recognise any surplus.

With regards to reduced contributions, IAS 19 references minimum funding requirements used by certain schemes which limit the scope for contribution reductions. The LGPS administering authority must obtain a rates and adjustments certificate every three years that shows the contributions to be paid by each employer to the pension fund for the following three years, thereby limiting the availability of any contribution reductions. Additionally, the local authority funding strategy statement provides for potential reductions in future contributions, but these would be at the discretion of the local authority with, in the majority of cases, academies being part of a stabilisation approach which sets a limit on any change to contributions e.g. to 1% of pay per year. This suggests minimum funding requirements are applicable to the Charity as determined by IAS19. When actuary asset ceiling calculations assume that minimum funding requirements exist, they provide an asset ceiling value of £Nil.

Based on the above, it cannot be determined that a flow of future benefits is probable therefore no asset has been recognised.

49

Exeter Royal Academy for Deaf Education

Notes to the Financial Statements for the Year Ended 31 August 2025 (continued)

23 Pension and similar obligations (continued)

Aegon Pension Scheme

The Aegon Pension Scheme is a defined contribution scheme. The total contribution made for the year ended 31 August 2025 was £384,767 (2024 - £306,748), of which employer's contributions totalled £281,101 (2024 - £236,706) and employees' contributions totalled £103,666 (2024 - £70,042).

24 Related party transactions

During the year the Charity made payments totalling £Nil (2024 - £2,700) to Kitson Boyce LLP, an LLP of which one of the Trustees is a partner. At the year end, a balance of £Nil (2024 - £Nil) was owed to Kitson Boyce LLP.

50