THE SUThON TRUST ACOMPANY LIMrrED BY GUARAKfEE (Company Registrafjon No. 07951541) (Charlty Registration No. 1146244) REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 THE su￿ON TRUST FOR THE YEAR ENDED 31 AUGUST2024 CONTENTS Page REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT AND DIRECTORS, REPORT) 1-23 INDEPENDENT AUDITOR'S REPORT 24-27 STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING THE INCOME AND EXPENDITURE ACCOUNT) 28 BALANCE SHEET 29 STATEMENT OF CASH FLOWS 30 NOTES TO THE FINANCIAL STATEMENTS 31-53 THE SUThON TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024 The Trustees. who are also directors for the purposes of company law, are pleased to submit their report together viith the audited financial statements of The Sutton Trust (Wie Charitable Companf, kne Chariv or "the Trusl.) for the year ended 31 August 2024. The Report of the Trustees incorporates the Slrategic Report and the Directors, Report. The financial statements comply with the Charities Act 2011. and where relevant. the Charities Act 2022, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities- ststement of Recommended Practice applicable to charities preparing their accounts in accordance with Ihe Financial Reporting Standard appIl￿ble in the UK and Republic of Ireland (FRS 102) (published in October 2019) ('Charities SORP FRS 102'}. REFERENCE AND ADMINISTRATIVE DETAILS FOR THE CHARITABLE COMPANY. ITS TRUSTEES AND ADVISERS Governing Instrument Memorandum and Articles of Assoaation Founder Sir Peter Lampl Trusto•s (also the statutory dlreclors of the Charitablo Company) Slr Peter Lampl Ollver Anthony Carruthers Quick Sir Peter Ollver Gershon (until 0311012024) Sir Graham Stuart Brady (from 1710712024) Stephen Mark Julius (from 2010712024) Martin John Sullivan (from 1910812024) Timothy Brian Bunting (until 2210512024) Lady Susan Lampl (until 1811112023) Professor Louise Richardson (until 0310712024) Fiona Jane Forbes (from 1611012024) lan Laurence Walsh (from 0411112024) Erica Wax {from 0510112025) Executive Chairnian Sir Peter Lampl (unlil 0411112024) Chair of Trustaas lan Walsh (from 0411112024) Chief Execullve Nick Harrison Director of Developmènt Jenny Suggitt (from 1110912023) Dlrector of Programmes Katy Harnpshire Dirnctor of Innovation Binda Patel (until 0410712024) Diroctor of Resoarch and Policy Carf Cullinane Director of Communlcations and Public Affalrs Sam Fletcher Director of Finance and Operations Stefanie Kha Page 1 THE SLrrTON TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024 REFERENCE AND ADMINISTRATIVE DETAILS FOR THE CHARrrABLE COMPANY. ITS TRUSTEES AND ADVISERS (¢ontlnued) Objects ol Charitable Company The Trustees shall hold or apply the capitsl and income of the Charity for the following objects: {1) To advan￿ the education of the public and to improve educational opportunities for young people: and To undertake such charltsble purposes or to make charitable donations in such a manner as the Trustees may in their absolute discretion think fit. {ii) Charitable Company Address & Registerod office Part 9th Floor, Millbank Tower, 21-24 Millbank, London, SW1 P 4QP W•bslt• and Social Medla www.suttontrust.com @suttontrust Charity Reglstrallon N￿rn￿r 1146244 Company Ragistratlon Number 07951541 Auditor Rawlinson & Hunter Audlt LLP Statutory Auditor Chartered Accounlants Eighth Floor, 6 New Street Square, New Fetter Lane, London EC4A 3AQ Bankers National Westminster Bank 57 Vlctoria Street, London, SW1H OHN CAF Bank Llmlted 25 lfjngs Hill Avenue, Klngs Hill, West Malling. Kent ME19 4JQ Nationwide Building Society Kings Park Road Moulton Park, Northampton NN3 6NW Investment Managers Rathbones Group PIC 8 Finsbury Circus. London, EC2M 7AZ J.P. Morgan Bank 60 Victoria EmbankmenL London EC4Y OJP Solicitors Bates Wells 10 Queen Street Place. Lond¢)n EC4R 18E Page 2 THE su￿ON TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024 CHAIR'S LETTER I write this a few months into my tenure as Chairperson of the Sutton Trust. It has been an honour to take on the role at such a prestigious organisation. First, I want to formally recognise the huge role Sir Peter Lampl has played over the past 27 years as Executive Chair.. founding The Sutton Trust, transforming the lives of tens of thousands of talented students, re-imagining research on this topic, incubating and chairing the EEF, and building national consensus around the social mobility imperative. A remarkable contribution to the UKS prosperity and fairness. ThankfiJlly, Sir Peter has agreed to continue as a Trustee, so we will conkn'nue to benefit from his experience and insight. I would also like to thank our longstanding Trustees Tim Bunting, Sir Peter Gershon and Dame Louise Richardson who have stepped down in the last year, as well as welcoming Fiona Forbes, Erica Wax, Martin Sullivan, Stephen Julius and Rt Hon Lord Brady of Altrincham to the board. I've spent much of my time so far meeting supporters and other stakeholders. l appreciate the time many of you have taken. It has been a pleasure to hear your passion for the cause, warmth for the Trust, ambition for the future and willingness to support. Indeed, the need for our work has never been greater. The UK remains one of the most challenging countries in the developed world for social mobility. If anything, the outlook for young people from low-income families has worsened through the pandemic and cost of living crisis. That said, l am energised by the difference we can make at the Sutton Trust, and I'm excited to be taking the organisation forward into its next chapter. Moreover, I look forward to working collaboratively with Government, business and the education sector to take our agenda forward. Social mobility is recognised by an increasing number of stakeholders as one of the most pressing problems holding our country back, both socially and economically- and the coming years represent a crucial moment to make a difference. Let me end by thanking all our donors, supporters and pariners. We could not do our work without you, and I hope we can count on your support in the years to come. lan Walsh Chairperson of the Sutton Trust Page 3 THE surroN TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024 OBJECTIVES AND ACTivrriES Charitable Aims Th8 aim of the Sutton Trust is to address educational disadvantsge and to promote social mobility - the opportunities open to young people from a lower income homes. High levels of social mobility mean that people from all backgrounds can succeed in life and make the mosl of their talents and aspirations. It is crucial for crealing a fairer society, fosterFng social cohesion, and boosting economic growth. At the Trust, we champion social mobility from birth to the worf(place so that all young people have a chance to succeed in life. We particularly focus on viidening access to high quality education and employment opportunities through a combination of evidence-led programmes, agenda-setting research. and policy infiuence. Strategy The Trust has five focus areas: Early Years. Schools, Apprenticeships. Higher Education and Access to the Workplace. The Trust has a unlque 'do tank, model of research and policy activity allied with practical, on-the-ground programmes. The Trust's programmes focus on academically abl8, disadvantaged students. We have built considerable expertise in this ar8a over the last 25 years and concentrate our support on young people from secondary school age onwards - up to and including those starting their careers - and at key transition points. particularly from school into university and from university into careers. The TNst's research and policy work is deliberately wider. recognislng that ther8 ara a range of access issues. at play from earfy years, through school and wllege and into university, apprentI￿shIpS and employment. The intention is, though, that a substantial proportlon of our research and policy work directly informs our programme work, and vi￿-verSa. The Trust completed its last strategy review in 2020. We are currently refreshing our strategy for Ihe period from 2025-2030. This strategy refresh had paused during 2023124 as we transitioned Chairfrom Sir Peter Lampl to lan Walsh, and had some further changes to the Board of Trustees. This strategy refresh will be complete in the first half of 2025, and w8 expect that key pillars of our strategy will include growng programme participants (with a mix of physical and digitsl delivery), strengthening our research and advocacy. and further growing and empowering our alumni c£>mmunity. Significant Activltles Prt)grammes - Our programmes, run in partnership with leading US and UK universities and not-for-profits, have helped ov8r 60,000 students since the Trust was founded, and reached almost 12,000 young people in this year. Innovation - Building on the success of Sutton Trust Online. the Trust is currently focussing its innovation activities on access to the Tech and Creative industries. Research and Policy- Our research and policy work aims to shed light on important issues around education inequality and low levels of social mobility. W8 have published over 290 pieces of research since the Trust VRS founded in 1997, which have generated significant media and press interest, and have influenced policy on many occasions. Development- As a registered charity that receives no govemment funding, our activity is only made possible by donations from our g8nerous supporters Induding fihe Advisory board, trusts and foundations, businesses, individuals and our alumni. Page 4 THE su￿ON TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024 OBJECTIVES AND ACTMTIES (continuod) Public Benefit The Trustees confinn that they have complied wth the duty in Section 4 of the Charities Act 2011 to have due regard to the guidance issued by the Charity Commission on public benefft. Furthemiore. the Trustees have considered the guidance when planning for fijture activities and are confident that the Charivs plans meet these requiremenls. The Trust works for the public benefit by increasing the educational opportunities available to young people from low- and middle-lncome homes and by improving and promoting social mobility. Its programme work is particularly tsrgeted at those from socio-economically deprived and non-privlleged backgrounds (see pages 5 to 10), and its ￿searCh and policy work (see pages 11 to 13} is made available to the public via a strong communications agenda, concentrating on broadcast and print joumalism, the Trust's website. social media, newsletters and events. In support of its work, the Trust works In partnership with other organisations and may also provide grants to its partners. The grant-Tnaking policy is published on page 16. ACHIEVEMENTS AND PERFORMANCE FOR THE PERIOD Programmes Each year we supp)rt over 10,000 high-attaining young people from disadvantaged backgrounds to make infomed chol￿S aboul their future, maximise their talents, and realise their aspirations. Academic Year 2023r24 Once agaln, the Trust has supported record numbers of beneficiaries in the last academic year, with highlights induding: 23,000+ applications to our programmes 15,500+ individuals supported - including c.11,900 young people {pre-18). ¢.2,600 alumni and c.1 ,000 teachers Students participating in over 1,000 work experience placements and c.400 stud&nts attending one of our Pathways conferences Continued growth in our alumni and post-18 offering with éxcellent engagement across leading employers, offering opportunities and mentoring Programme Eligibilty and Outcomes In every cohort. we apply five needs-based and one tslent-based eligiblllty criteria to ensure we are reaching the young people that will benefit most: Fre8 Sthool Meals eligibility First generalion of their family to attend unNerssty Live in a neighbourhood of socio*conomic deprivation Attend a low perfoming school Been in local authorty care Predicted to attaln at least five GCSES grade 9-6 (equivalent to A. to B), or atleast five A or B grades at National 5 in Scotland. The students we support have often grown up in areas with high rates of povety and economic deprivation; nearly half have been eliglble for free school meals. They attend state-funded schools and more than 75Yo are the first in their family to attend university. Our programmes are open to students from across the UK, encouraging applicalions from regional social rnobility cold spots such as those in the North-East. North-west, and the West Mldlands. Despite the challengas they have faced, young people on our programmes are often outstsnding students with high potential to excel In university and thelr careers, and our cohorts reflect greater ethnic and gender diversity than found In comparative courses at Russell Group institutlons. In 2023124 vrfe received more than five Page 5 THE su￿oN TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST2024 ACHIEVEMENTS AND PERFORMANCE FOR THE PERIOD (continued) Programmes (continued) applications for each place on our programmes, demonstrating the criti¢xI need for our programmes to support disadvantaged young people and help them unlod( their considerable talents. As a result of taking part in our programrnes, students will increase their ￿nfidenCe. develop skills for the fu￿re and make an infomed choice about next steps. Impact Update In our last annual report we were able to report on Ihe destinations of participants through our analysis of HEAT (Higher Education Access Tracker) which provides individual level destinations in respect to Higher Education and graduate outcomes. This was based on the 2019120 programme participants. Unfortunately, due to delays at HEAT we have not yet had the next round of data and have been infonned that this is delayed again until Febwary 2025. In the meantime. we have been able to analyse the outcomes for 2021122 particlpants who completed A-Levels in 2023 through the UCAS Outreach Tracker - this does not gNe us individual level data but does provide a useful litmus test for how our programmes are performing. Anaysis compares results for programme participants against the UCAS comparator group which are matched to participants based on demographic characteristics (for university applications, offers and acceptances) and prior attainment (for offerlac¢eptanc8 measures only). Headlines indude.. Across the Sutton Trust's programmes, typicalty around nlne in ten students (90 % ) apply lo university for study immedlately after A-Levels (or equivalent in other UK nations), with between 744OVo of Ihe lotal cohort accepting a pla￿. In both cases this is around ten percentage points higher than the UCAS Comparator Group. Almost all programme partiapants who apply to universty thoose to apply to at least one high tariff universty (typically around four in five. 80%, of the totsl cohort). For UK Summer Schools, around half (470/0) of students end up a¢￿pting a place at a high tariff university, while for Pathways programmes it tends lo be around tsvo in five (40Vo). One of the reasons for the per￿ntage of participants accepting places at high tsriff universities may be slightly lower for Pathways than for UK Summer Schools is that some institutions outside the high tariff group may potentially be subject specialists. Participant rates of accepting offers to high tariff universities is significantly higher than the UCAS Comparator Group and in general iwice as many participants compared wilh the UCAS comparatorgroup accepted a place at a high tariff university. There is a dear gradient in favour of increased engagement with Sutton Trust Online being associated with positive university access outcornes. UK Summer School students who engaged with Sutton Trust Online were significantly more likely to accept an offer at a high tariff university than those who did not activate their account {a 21-percentage point difference). Participants on both Pathways to Law and Pathways to Medicine are also significantly mor8 likely than their respective Sutton Trust comparator groups to apply for and accept places on Law and MedicinelDentistry degree programmes respectively. UK Summer Schools Each year we give over 2.600 talented students aged 16-17 the Chan￿ to experience whal student life is really like at leading universities across Ihe UK Wrth our 13 universily partners, students explore academic lrfe in over 40 subject areas by attending lectures. workshops, seminars, and hands4)n sessions, and tske part in social activities that Introdu￿ them to the local area and universlty culture. They are also supported to develop their skills for applying to untversity, induding navigating student finance and INing independenlly. In 2023124, the Trusl recelv8d 15,655 applications for UK Summer School places (2022123: 13,790) and offered 2,651 places (2022123: 2,401). This is equivalenl to 5.9 applicallons per pla￿. 2023124 was an exceptional year. and we were able to increase places available, but moving fonvard we need to think strateglcally about Page 6 THE su￿ON TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024 ACHIEVEPJIENTS AND PERFORMANCE FOR THE PERIOD (contlnued} Programmos {contlnued) how we can apply resources sustainably (incl. digital tools) to support lalentsd young people to unlock their potential. Our targeting of young people ensures programme cohorts are comprised of young people from non-privileged backgrounds. The average Sutton Trust eligibility criteria met by those offered a pla￿ in 2023124 was 3.8 (out of 5), in addtlion: 70Yo were the first in their family to attend university 54% have been eligible for Free School Meals (FSM) 89% come from disadvantaged neighbourhoods 75% corne from a Sutton Trust target schwl (i.e. low performing schools) Our latest UK Summer School impact data, extemally evaluated by the Bridge Group, is from the academic year 2022123. Collating information from baseline, mid-point, and end-point studenl surveys, headline findings are: 930/0 of participants enjoyed taking part. 88 % of respondents agreed or strongly agreed that the summer school had helped them make more infomied decisions about their post-school options. At the end of the summer school, 900/0 of respondents felt confident about applying to university, up from 680/0 at baseline. Additionally, Ihere was a 37-percentag8 point increase in respondents, feeling ￿nfident about making a university application for their summer school subject between baseline and exit. 840A of respondents agreed or strongly agreed that the summer school had given them the skills needed to navigate the higher education system. Attending the summer school made participants feel substantially more comfortable about the transition to university and fltting in socially. Student ambassadors had a highly positive role in this process. Attending the summer school also positively changed studenls, perceptions of universities as accessible and indusive places. aknng part in the programme has impacted me hugely,. I know I can live away from home, knowing l am s8fe and conrfortable with the univer￿'ty. Before attending this programme, I was unsure of appI￿ng to university and the course I was interested in doing but after attending, gaining experience, and leaming about new opportunities, l am excited.. Programme Participant, UK Summer Sd)ool. US Programme Each year we support 150 students to take part in this programme. This includes a week4ong trip to the States, where students get a taste of US higher education and culture at leading institulions such as Yale. MIT. and Princeton. and a UK-based residential to experience UK universities and receive comprehensive US admissions advi￿ from experts. induding understanding financial aid at American universities. The impact of the US Programme is profound and can leverage huge financial returns for participants, as they leave Iheir university experience free of the significant debt that their peers in the UK syslem are saddled with. Since tts inception, over 600 US Programme participants have studied in the US. ac￿ssIng over $170m in financial aid. and attending some of the most prestigious universties in the world (SLKh as Harvard. MIT. and Yale). 44 students from Cohort 12 students (starting the programme in 2022123) hav8 secured places at US colleges this year- an acceptan￿ rate of 480A (and representing 29% of the total cohort in line with Cohort11). Students have been awarded places across 28 institutions induding 4 at both Harvard and Emory and 3 Princeton, 3 at Northw8Stem and 3 at Dartmouth. The 44 students have been awarded at total of $14.8m in financial aid across their 4 years of study. 'More than just an academic endeavour. the programme fosters enduring frlendshlps with like- minded individuals. This experience has been so instrumental In my confidence growth during Year 12, greatly Page 7 THE SUTTON TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024 ACHIEVEMENTS AND PERFORMANCE FOR THE PERIOD (continued) Programmes (continued) contributing to my overall development and achievements" Programme participant accepted to Dartmouth University. Sutton Trust Online (or "STO? Sutton Trust Online launched in 2020 to meat the challenges of the pandemic, supporting our swift pivot to virtual delivery during a time of acute need. Sutton Trust Online is now embedded in the way we dellver our programmes. with all participants having access to the virtual platfomi that covérs four phases of content: Explore.. supports students in their exploration of post-18 optlons, whether that be university, apprenticeships, or careers. Apply: supports students in croating a competitive and powerful university andlor apprenticeship application. Prepar8: supports students in their preparation for university or an apprenticeship. Succeed: supports students in transitioning to studying and Ilving in a post-18 environment. Alongside students participating in our universty-access and sector-focused programmes, since its creation Sutton Tnjst Online has also been offered to students who appli8d for these programmes but were not successful in securing a place, as long as they met our programme eligibility criteria. In 2023124 we also opened dir8Ct applications for Sutton Trust Online for the first time, growing our offering to ensure that we can reach more talented young people. We received 782 direct applications, of which 558 met our eligibility criteria and accepted a place. We are pleased with this for our pilot year of offering this and look forward to further developing our marketing and offer In this space. As a result of direct applications and gr0￿h in applicatlons to our other programmes, we reached a total of 11,400 Year 12 students who activated an account on the platforni, an increase of circa 2,000 compared to the previous year. In totsl over 43,000 students have now received support since STO launched. This year we have worked hard to analyse and improve engagement with the plafforn and its resources. As result- 23,986 messages have baen sent on STO Chat in 2023-24, connecting students and alumni. Over 6,500 students have watched our STO onboarding webinar, with over 2,600 attending live and high levels of engagement- with hundreds of queslions asked via the chat box functionality and several Sutton Trust staff on hand to ensure prompt answers. We hav8 made recordings available for over 130 webinars for STO users to access. Topics Include student experience at speclfic universilies, taster lectures for subjects. universlty funding, apprenticeships Q&As, making the most of open days, choosing a course, and student experience for diverse demographics of students. 4,280 students have used OSCAR, the personal ststement builder, In 2023124, we conducl8d an external evalualion of the programme. This focused both on the university outcomes for users as w811 as evaluation of their experience of the platfomi and recommendations for improvements using the evaluators expert digitsl team. We were particularly pleased to not8 that sludents engaging with STO are significantly more likely to apply to and gain acceptance at ￿MpetItiVe institutions. Critically, the level of engagement with STO correlates with success. Students who engage deeply with the platfom are statlstically more likely to receive offers and acceptances than their less*ngaged peers. This tells us that STO is not just helping students apply to these universities4t's equipping them with the skills and knowledge to succeed in the highly competitive application process and. Ihereafter, to transition successfully on counse, an Important area of focus going forwards. Other recommendatlons are b61ng taken forwards by the tearn in pathership wllh our platform developers. Page 8 THE SUThON TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024 ACHIEVEMENTS AND PERFORMANCE FOR THE PERIOD {contlnu8d> Programmes (continuod) What I liked most about STO is how it provided me with a wealth of resources and clear, detailed information about my future options and pathways. The guidance and tools boosted my confidence in making informed decisions regarding my education and careerf STO Pa￿Cipant from th8 Extem81 Evaluation. Pathways Each year our Pathways to the Professions programme supports over 1,500 talented students aged 16-18 10 understand more about speclfic subjects and career sectors, levelling the playing field with their more socio- economically advantaged peers when it comes to accessing networks. infomation, and critical work experience placements. Pathways programmes wn for 18 months and focus on a specific profession or industry, such as law, engineering, medicine, consulting, or banking & finance. Delivery is in collaboration with 15 leading universities and over 100 employer partners, and includes university-led conferences, skills sesslons, admissions support, and work plac8ments. We support studenls across the country, with university partners including Exeter, Imperlal College London, LSE, Leicester, Notbngham, Warwick, Liverpod, Leeds, Manch8st8r, Newcastle, and Cardlff. We also offer Online￿nlY options for Banking & Finance and Law programme streams, and our Pathways to Consulting programme is entirely onlin8 With ft)ur leading consultsncy f5rms. In 2023124, the Trust received 6,234 applications for our Pathways programmes (2022123: 4,186) and offered 1,552 places (2022123.. 1.335). This is equivalent to 4 applicalions for each place. demonstrating Ihe critical need for this programme. The average Sutton Trust eligibilty criteria met by those offered a place In 2023124 was 3.7 (out of 5), in addition: 75Vo were the first in their family to attend university 46Yo have been eligible ft)r Free School Meals (FSM) 900A come from disadvantaged n8ighbourhoods 62QA come from a Sutton Trust target school (i.e. low perfomiing schools) Programmatic hlghlights in 2023124 included: We held our Pathways to Engineering conference at WaNick in April for 83 studénts from Cardiff. Llverpool and Watwick unlversity programmes and have also partn8r8d with Merc6d8s for 45 students to attend a careers day at th8ir offices. For Pathways to Mediclne, w8 hosted 120 students for an online week of work experience with our parther universlties (Imperial, Nottingham, Newcaslle & HYMS). We hosted our 'Economic Principles. lecture for our Banking and Finance & Consulting Online students, led by th8 University of Exeter, and have had 400+ work experience placements across all of our industry sectors over the Easter break and May half-term. We held both our Pathways to Banking & Finan￿ and Pathways to Law conferences supporting 341 students with a rang8 of activitles including excdlent employer led sessions from organisations such as Citi Group, DL4 Plper, Irwin Mitchel, PWC and Orbis Investmant. Student feedback d6monstrated 750/0 felt the conferences had helped them make an informed choice about whether to enter the sector, and over 70Vo agreed th8y had developed key employability skills Our latest Pathways impact dats analysed during 2023124 from the cohorts that completed their A-Levels in 2023 shows: Conftdence in applying to universty increased, especially In writing personal ststements, rlsing from 52Vo at baseline to 85% at midpoint. At exit, 84Q/o agreed or strongly agr88d that Pathways had glven them th6 skllls needed to navigate the university system. Four in flve respondents (810h) said that their perceptlons of the sector had posltlvely changed. with the same proportlon (81 Y.) agreeing or agreelng strongly that attendlng the Pathways programme has given them the skllls to navlgate their chosen sector. Page 9 THE su￿oN TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024 ACHIEVEMENTS AND PERFORMANCE FOR THE PERIOD (contlnued) Programmes (contlnued) The programme exposed me to the entire spectrum of careers in the banknng and finance sector, through net¥VO￿lng events. infom7ation sessions. and worf( expeilence at notable industry names. Most importantly, however, the prograii7me gave me courage and belief. It allowed me to enwsion myself in a high-flying finance career. something that seemed all too distant from what I was exposed to growing up. Visibility is super importantl" Pathways to Banking & Finance Participant. Access Appr8nticeships Initially trialled as a short intensive summer school, we've leamt from our pilot delivery and have adapted the model to better suit young people's needs. Despits positive outcomes from the initial summer school pilot. specifically in increasing students, knowledge and interest in apprenticeships, only 360/0 were confident about actually applying lo an apprenticeship, wilh many expressing a need for additional support in their application joumey. Infonned by this leaming, our new Access Apprenticeships programme, launched In early 2024. supports students in ac￿SsIng high-quality apprenticeships. Taking place over a year, the programme is providing 146 students aged 16-17 with opportunities to networkwith professionals In the industry. attend information sessions on apprenticeship programmes, and receive guidance with the application process itself. Every student has chosen a sector strand which interests them from Banking & Finance, Law. and Engineering. They then take part in a range of core activities to get a unique insight into what apprenticeships and career in that sector is really like. Activities include work experience, sector insight days, skills sessions, mock assessment centres, and workshops, Wlth in-person and onllne interaction and opportunities to meet current apprentlces within the company. students are now receiving dedicated applicalion mentoring to support applications to higher and d8gree apprenticeships, and we look forward to receiving evaluation data and metrics next year. Alumni and Post-18 Progrdmming We recognise that our alumni are a powerful force for change; there are now over 60,000 thousand of Sutton Trust alumni at university and in the workplace, of which around 36,000 ar8 contactable. Our Sutton Trust Alumnl plafform (STA) offers exdusive access to job opportunities from companies dedicated to improving social mobility, webinars. and resources. Our alumni e-newsletter connects our thousands of alumni with opportunities and keeps them in touch with our worf(. Because we recognise that access to university is not the end of the barriers for our alumni, we also offer a career r8adiness post-18 programme. designed to provide additional support during their time as an undergraduate. The Careers Plus programme is designed to help level the playing field and give high-attaining young people the opportunity to further develop their ernployability skills, gain critical work experien￿, and access mentoring with some of the UK'S leading employers in selected professional sectors. In 2023124, 55 alumni participated in our Careers Plus to Law programme with work experience opportunities through Hogan Lovells, Mishcon de Reya and RBG Legal Services Limited. a variety of skills-based sessions and menloring opportunities from employers. Following our 2023124 Careers Plus (Law) programme, 890A of students surveyed agreed that the work experience mad8 them more likely to enter the profession, and 1000 would recommend the programm8 to their fellow alumni. For 2024-25, we will continue to run Careers Plus: Law and will be expanding our delivery to run Iwo additional programmes - Careers Plus: Consulting and Careers Plus: Tech. We are excited to be brfnglng these Iwo new programmes to life. working wlth existing delivery partners from Pathways to Consultlng to support our expansion Into post-18 programmes in consultlng, and explorlng new partnerships to dellver our tech programme. Page 10 THE surroN TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024 ACHIEVEMENTS AND PERFORMANCE FOR THE PERIOD (continu•d) Programmes {continuad) We have now also complet8d year three of both the Careers Skills Bursary (supported by Bloomberg), and the Opportunity Bursary (supported by J.P. Morgan). The bursary programmes include both financial support to studenls as well as mentoring and, for the Careers Skills Bursary, a week-long work experience at Bloomberg LP in London. In 2023124, we awarded a tolal of 72 bursaries (2022123: 88). Alumni are also a vital part of both our programming and Trust's wlder work, with alumni giving over 1,200 hours of their time, providing in-kind support such as employer spaces to host events, and introductions to employers and contacts who then work in partnership with us. Alumni volunteer in several ways, including speaking in webinars and in person events, acting as mentors, and supporting our fundraising efforts. We are also proud to have a thriving and diverse Alumni Leadership Board who often act as spokespeople with the media, provide feedback on programme improvements and develop ways for Ihe Trust to support its alumni body aftar students complete their programme. Innovation Innovation has always bean in the DNA of the Sutton Trust. In 2023124, we have significantly progressed two project areas in the tech and creative sectors- both of which have particular issues with social mobility and particularty low levels of sociooconomic diversity. Separately In each of these sectors, we are working to convene a taskforce of industy plays who will agree to a set of social mobility commitments and work together to share bést practice, and test and implement industry solutions to access and ratention issues. The tech tsskforce is furthest advanced, and we expect it to launch in Q12025. In Creative. we are still in the process of building the coalition of industy players. Last year we were also working on innovation in fairer school admissions. This work was successful and has now moved to business-as-usual management- as we work with schod leaders on admissions and continue to advocate for policy change in this area. Our Director of Innovatlon left the Trust in Juty 2024. We have paused recruiting Into this post until we review the role and structure of our Innovation actlvities as part of our strategy refresh. Research, Pollcy and Communicatlons Our programmes help thousands of young people fulf51 their potential, but to see a true step Ghange in social mobility in this country, much larger changes are needed in policymaking and wider society. Our agenda-setting research identifies the root causes of low social mobility and promotes effective solutions through eVIden￿-led policy change, from the early years, through to schools. appren￿ceShips. university and into employment. Since 1997 wa have published over 290 evidence-rich reports. many of which have gone on to influence national policy. Over the course of 2023124 we have published 15 pieces of research, across each of our key research plllars. Both our researth reports as well as our reactive analysis (such as around the General Election or the Paris Olympics) have contlnued to ￿ment our posltion as a 'go-to' Sour￿ of evidence and insight on social moblllty and education. Some major publication highllghts this year have Induded: Paga11 THE SUThON TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024 ACHIEVEMENTS AND PERFORMANCE FOR THE PERIOD {¢ontinued) Research, Pollcy and Communications (contlnued) Parliamentary Privilege (July 2024) Since 2010, we have been looking at the educational bad(grounds of the 650 Members of Parliament elected to the House of Commons. Following the 2024 General Election, our detailed analysis of the new crop of MPS finds a significant change in their school and university backgrounds compared to those who were elected in 2019. It shows a historic sea change, with a record proportion of MPS educated at state comprehensive schools (63°k). and moving our elected representatives doser to reflecting the British popula￿, especially compared to 54°/o of MPS elected in 2019. H¢)wever. the majority of the House of Commons continue to attend a narrow range of universities. with 55°k attending Oxbridge or Russell Group institutions. Social Mobility and Opportunity (May 2024) What are the British public's views on equality of opportunity and social mobiliW Do todays voters want to see greater action to level the playing field, and should VR be investing to equalise opportunities? National polling. completed with More in Common, looked at public attitudes to social mobility across the political spectrum. The results show the public perceives British society as both unequal and unfair, with dear social inequalities identified. particularly in relation to jobs and education, but also strong public support for the idea that all young people should have equal opportunities regardless of background. School Admissions: Sel8Ctiva Compr8h8nsiv8s (January 2024) This series of reports took a deep look at school admissions, uncovering evidence that England's top comprehensive schools are, in practice, often highly socially selective. The top 500 show a signfficant gap bebNeen the rates of Free School Maal eligibility In the local area they draw their students from and the FSM rates of their actual intakes. This means that even if disadvantaged pupils have a top sch¢)ol in their local area, they are less likely to get into one. The interactive dashboard can be found here, offerlng rich insights into the socio-economic makeup of individual school intakes across England, with further analysis published by our research leam in September 2024 here. Higher Education Maintenance Funding (December 2023) Earlier in 2023, Sutton Trusl research revealed the extent to which students across the country were struggling to manage financially due to the cost-of-ltving crisis, following a period of record high levels of inflation. Building on these findings, this analysis took a doser look at the financial support students re￿1ve through student finance. It found a wide gap between the amount of maintenance support students receive, and the amount they need to spend on 8ssentials. Median loans both in London (£8,500) and the rest of England {£7.000) came nowhere near to covering median costs on essential spending {£17,287 and £11.400 respectively). This gap impacts students from low-socio economic backgrounds the most, who don't have the familial financial support that their more affluent peers are able to rely on. COSMO Wave 2 Briefings - Post 18 Opportunities and Aspirations; Mental and Physical Health (November 2023) COSMO is a major national longitudinal cohort study examining the impact of the Covid-19 pandemic on educational inequality and social mobility. The study is a cx)Ilaboration between the Sutton Trust, the UCL Centre for Education Policy and Equalising Opportuniti8s, and the Centre for Longitudinal Studies. A representstive Sample of young people in England who were in Year 11 in the 202012021 acad8mic year were invited to take part in the survey. with the aim of following them as thay progress through Ihe final stages of education and into the labour market. A sample of more than 13,000 young people was remiit8d in Wave 1. All young people who took part in Wave 1 were invited to Wave 2 when they were in Year 13, and over 11,000 took part. The first two briefings on Wave 2 were published this year. The first examin8d th8 long-term trend of worsening mental health and wellbelng among young people, whilst the second axamin8d the post-18 opportunities and aspirations of this cohort, the full analysis of which can be accessed In Sutton Trusfs website. Page 12 TrIE su￿ON TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024 ACHIEVEMENTS AND PERFORMANCE FOR THE PERIOD (continued) Research, Policy and Communlcation8 (continued) 25 Years of University Access (October 2023) Our major study of higher education trends over the past 25 years reveals persistent access gaps for disadvantaged students, particularly at the most selective universities. The report shows that while we have more young people accessing higher education than ever, there are persistent access gaps for poorer students, partlcularly at the most selective universlties, and major regional disparitles in applying to and attending universlty. We also published three 'general election briefings, centred around our three policy priorities ahead of the general election: Reforming Student Maintenance (March 2024) highlighted the increasingly insuffici8nt financial support for students from less well-off backgrounds, and used economic modelling to propose an overhaul to student finance, increasing the amount of money in student pockets as well as bringing back maintenance grants, on a cost neutral basis. Closing the Attainment Gap (February 2024) highlightsd that the disadvantage attainment gap at all stages of schooling is at decade long highs, and set out the basics of a national strategy to reduce that gap. Inequality in Earty Years Education (January 2024), mapped out the state of play in Early Years policy, and set out a seri8s of policies to give children a fair start in life, tackling access to early education, improving quality provision for those who need it most, and overhauling support for families through children's centres and family hubs. Policy andAdvoGacy A vital complementto our research work is ouradvocacy-influencing govemment, political parties, educational institutions, employers, and other third sector organisations to make tangible changes to improve social mobility in the UK. Since 1997, we have worked with every govemment and across all political parties to make sure that social mobility stays at the top of the agenda. Prior to the 2024 General Election, our advocacy efforts focused on engagement across political parties to influence future policy. This centred around our manif8Sto. Fair Opportunity For All. It outlin8s our policy roadmap that will enable the government to break the link beiween background and success and make the most of our country's talent, by enacting each of our cosled policy recommendations. Thls document will underpin our adV0￿cY work ov8r the comlng parfiamentary tenn. This year also saw an expanded events programme. In September 2023 we hosted the launch evenl for the OECD'S °Education at a Glance" report, featuring Abel Schulman from the OECD, Secretary of Stale Gillian Keegan. and a panel of experts. We also held a series of webinars on our election priorities during the first half of Ihe year, with a range of panellists across policy and practice, that were extremely well attended. We have continued to receive high profile national Goverage for our work and have seen increased digital reach and parliamentary mentions over the course of the 2023124 year, in line with a steady upward trend in the salience of social mobility in th8 parliamentary agenda. Social mobility mentions in Hansard contlnue to grow: between September 2023 and August 2024 there were 102 referen￿S to social mobility. In comparison, 20 years earller beiween September 2003 and September 2004 there was just 11 references, only one of which related to education and young people. We also recently refreshed our brand and r8design8d our website and are pleased to report that that engagement across all our online platft)ms has remained on an upward trajectory over thls period. Page 13 THE SUThON TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024 ACHIEVEMENTS AND PERFORMANCE FOR THE PERIOD (continuod) Dovelopment The Sutton Trust closed its financial year 2023124 in a strong position, thanks to the generous support of our family of donors and partners. The Trust typically tracks two key metrics in monitoring fundraising perfomance., cash received during the year and new pledges secured. The latter being a measure of new business, some of which is in the fomi of multi- year commitrnents that are realised as cash over time. The figures for the past iwo full years are: 2023124 New pledges secured: £3.8m Cash received: £6.2m 2022123 New pledges secured: £12.8m Cash received: £6.8m (Note: The cash figures may differ from tho accounts, which have been prepared on an accruals basis) 2023124 has been a strong year for fundraising wlth the Trust. The Director of Development, working in partnership with the CEO, built a new and comprehensive funding strategy to capitalise on our successful track record while building a diversified and stable foundation of sustainable income to underpin the organisation's important work. As part of this, the Development Department has been restructured into specialist teams, and two senior fundraisers have been appointed lo work closely with the Director of Development on building our major gifts programme. Sir Peter Lampl remains involved in fundraising activity after his ￿tirernent from Ihe Executive Chair position, particularfy with ourfunding board and other longstanding relationships. Across Ihe year, the Development team focused on both proactively growing our pool of donors as well as developing multi-lay8red relationships across our current partnerships. This has enabled us to successfully onboard a suite of new SUPPOrters as well as increase our funding levels and partnership tsnns with current funders. Highlights of the year included.. Three-year support from the Garfield Weston Foundation for Pathways to the Professions Three-yaar unrestricted support from Citadel and Citadel Securiti8S Onboarding a number of new supporters indudlng: Slaughter & May, Nuveen. Northem Trusl, Wells Fargo, HG Foundation Our highest level of funder visits lo our summer prograrnmes Due to programme underspend accumulatsd during 2020 and 2021. the Trust delayed a number of fundraising asks until 2022123, which contributed to the sharp increase of pledges secured during that period and a subsequent drop in 2023124. With a number of significant renewals being planned in 2024125 we expect the forward pledges figure to increase in the next year as we enter into the next partnership ren8wal cycle. Financlal Ravlew In the financial year under revlew, income receivable, including grants, gifts, pro-bono support, interest and investment incom8 was £7.5m, a 5Q/o increase on the previous year (2023.. £7.1m) and expenditure, also induding pro-bono support, was £8.3m, a 8'A increase on the previous year (2023.. £7.6m). The total funds of the Trust decreased to £9.7m, a decrease of 60/0 during the year (2023: £10.3m). The decrease in funds Is In line with expectations. It has been the Trust's aim to reduce its reserves, particularfy those accumulated during the pandemic and restricted lo particular programmes, in a measured and sustainable way. For the year, income f811 short of expenditure by £0.8m (2023: £0.5m) of which £1.1 m is wilhin restricted or deslgnated funds. Page 14 THE SUThON TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024 ACHIEVEMENTS AND PERFORMANCE FOR THE PERIOD (continued) Financlal Revlew (continued) Income Restricted income received in the year was £5.1 m, 680/0 of total income received (2023: 640/0) from over 100 different organisations and individual donors providing funding to programmes and research. Unrestricted Income received in the year was £2.3m, 32 /0 of total income received (2023: 35 % ). Pro-bono seniices of £0.7m were received in the year. of which £0.4m were included within restricted income and £0.3rn within unrestricted income (2023: £0.2m, restricted). Expenditure Totsl expenditure on charitsble activities was £7.7m. a 100/0 increase compared to the prior year. This increase reflects the cost impact of inflation as well as some initial capacity building invesknents, such as stsffing, website design and branding, and advisory. Totsl expenditure on generating funds of £0.6m has stayed consistent compared to the previous year. refflecting the continued investment in the development team to ensure ongoing success in building long-tenn relationships with funders and other actiwties as set out in the Development section on page 14. Charitable Funds and Cash Restricted income funds at the year*nd fell by £1.1m. or 340/0, to £2.1m. This is due to a planned reduction in accumulated funds during the pandemic. The detsils of the restricted fund balances by programme are shown in note 18. Unrestricted income funds increased by 69/0, to £5.3m, in Ihe perit)d. Factors contributing to the surplus include: successfijl conversion of restricted to un￿stricted fundlng enabling funds to be applied in areas with the greatest need; timing with some funds received in the days prior to year end; reduced expenditure relating to vacancies during the year. The reserves policy of the Trust is explained on page 14-15. The designat8d fund, created in 2019 and fully invest8d at the start of th8 year in accordance with the investrnent policy of the Trust, generated a positive annual return of £187k. or 9Yo, Wlth a market value of £2.3m at the year£nd. Cash held at period end was £8.6m of which £3.6m relates to restricted fund5 and £5m to unrestricted funds. The Trust continues to worl( on reducing the level of cash held in relation to its restricted funds. At the year end, the Trust was in the process of opening a liquidity portfolio with J.P. Morgan to more effectivety manage unrestricted cash. ReSe￿8S Policy The purpose of the reserves poliGy is to mitigate any risk to the Trust's activities, which may be caused by short- temi financing requirements caused by delayed funder payments, unforeseen increase8 in expenditure orfulure changes to the fundraising model. The Trustees. Chief Executive and Executive Team meet to review the strategy. budgets, operating plans and forecasts for the forthcoming year. They aim to ensure Ihat appropriate reserves are available to undertake programme activity agreed with funders and to finance the operating costs of the Trust for a minimum period of one year, in the event that th8 Trust is unable to s8￿re reliable and resilient income through direct fundraising. As many of the Trust's programmes support young people over multiple years, it is important that services can Gontinu8 uninterrupted through to completion. Reserves Include restricted and unrestricted funds. Unrestricted funds can be used at the discretion of the Trustees. The restricted fvnds may only be used for the purpose specified by the donor. Page 15 THE surroN TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024 ACHIEVEMENTS AND PERFORMANCE FOR THE PERIOD (continued) Financlal Review (continued) At the year end. total funds carried foDNard are £9.7m, which breaks down into £2.1 m restricted funds, £2.3m of designated funds and £5.3m of general unrestricted funds. Restricted funds are specified and allocated for the different programmes and research projects undertaken by Ihe Trust. The level of restricted funds had risen significantly during the pandemic due to the continued cost savings caused by reduced face-to-face activities. The Trust is working dosely with its fvnders to ensure funds accumulated are spent responsibly over an extended period. A breakdown of the reslricted funds by programmes can be found in note 18. The Designated fund was estsblished to secure Ihe Trusfs long-temi financial sustainability. The designated fund may provide an initial investment for an expendable endowment in the future. In the short-to-medium temi the strategy is to accumulate the returns generated to sustain the growth of the fund. In the long-term the income generated is expeGted to provide an additional source of unrestricted income for the Trust. Unrestricted funds consist of: Free Reserv8s of £3.4m. This amount is expected to cover the budg8ted operating costs for the next financial year. including staff salaries. Fixed Asset Fund of £0.1m. This is equival8nt to the fixed assets held and used by the Trust, as these cannot be realised in the short-term. General Reserves of £1.8m. This amount is set aside to finance fluctuations in cashfiow. to continue running programmes in the short-term. in the absence of a funder or to trial new programmes prior to seeking extemal funding. It is important to nole that many of the programmes are planned for a multi-year period and thls level of funding is a source of finance. The TNstees review the way in which unreslricted funds are allocated with the alm of maximising the amount available for charitable activities whilst ensuring that an appropriate level of reseNes is maintsined for the purposes set out above. Overall, the Trustees consider the level of reserves held at year end to be reasonable in light of a planned leadership transition as Sir Peter Lampl was preparing to step dovffl from his position as Executive Chainnan and the Trust's strategy work was paused to allow the new Trustees to settle in. In anticipation of this period of organisational change. the Trust has been more conservative in its approach to spending to allow for a swift implementation, including where appropriate investing reserves into new activities, once the new organisational strategy is finalised. The Trustees remain committed to reviewing the level of unrestricted reserves held alongside the Trust's strategy work into 2025. Investment Policy & Perfom7ance The Charity relies on professional fund managers for the day-to-day running of investment portfolio. The appointed fund managers manage the po￿0110 on a discrelionary basis. with the fund managers taking all investment decisions in line with the investrnent objectives and risk profile agreed by the Trustees. The Trust holds two separate investment funds - the designated investrnent fund for long-term sustainability and the (restricted) opportunity bursary fund - managed by Ralhbones Group PLC and J.P. Morgan Bank, respeclively. on behalf of the Trust. Each investment portfolio is allocated to the following asset dasses: 8qUlties, fixed income and cash. and altematives, with target allocations varying in line with Ihe purpose of the specffic investment (see below). The investrnent objectives of each investment reflect their medium-to-long t8rm nature and include.. Above-average level of capital and income growth and the maintenance of the capital value of the portfolio over the medium-to-long-term Investrnents in marketable securities which are capable of being converted Into cash with reasonable notice Page 16 THE SUThON TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024 ACHIEVEMENTS AND PERFORMANCE FOR THE PERIOD {contlnued) Flnancial Review (contlnued) Dewgnated Investment Fund for long-tem? sustainability The fund was designated in 2019 with an initial cash investrnent of £2m. At the end of the year, the fvnd value was £2.3m with an asset allocation of 60.3% equities. 26.1°A fixed income. 9.9°A altematives and 3.7% cash holdings. The portfolio has had satisfactory performance during the year, generating a retum of 9.5Y• net of fees and charges. ahead of the investrnent objective5 for the fund. However, the fund perfo￿anCe compares unfavourably to with Rathbones, composite benchmark (12.6%) corresponding to the Trust's investment strategy. The portfolio overall has benefited from the easing of the economic situation in the UK. with reduced inflation and a stsble labour markel; however, it performed behind the benchmark due to a number of historic asset allocations, which are being corrected over lime. All incorne and gains are reinvested into the fund. At the end of the year, the Trust was in the proGess of transitioning investment manager. Opportunity Bursary (Restricted) Fund The fund was established in 2021 with an initial cash grant of £4.8m and additional donations of £0.4m. At the end of the year the fund value was £5.4m with an asset allocation of 56.10A equities, 39.7Yo fixed income, 2.6° alternatives and 1.6 % cash holdlngs. The fund has had good performance during the year, generating a r8tum of 16Yo net of fees and charges. which is well ahead of the Trust's investment objectives for the fund. The fund performance compares favourably with J.P. Morgan's composite benchmarks {15.4Yo) corresponding to the Trust's investment strategy. The portrolio has much larger overseas exposure than the Trusfs Designated Investment Fund, and the positive growth was largely driven by slowing inflation, falling interest rates and strong performance of tech companies in the US stock Market. During the year, £200k was withdravm from the fund in line with revisad grant condltions; an additional £73k was withdrawn from the fund relating to additional donations received. The prlncipal of the grant and the associated investment income is shown within deferred income in Note 13. Grant-making Policy The Trusl supports research, policy and programme work related to its central aim of promoting social mobility through education. It in¢reasingly works in partnership wilh funders, induding trusts and foundations, cory)orates and individuals. Generally, SUPPDrt is given for a specific programme or piece of research to be delivered within a one-to-three-year time fram8, With regular review points. The Trust takes a strategic and proactive approach to its work. working with other organisations to develop and evaluate its activities, based on the latest research evidence and policy opportunities. The overall budget for each year is approved by the Twstees in consultation with the Executive Chaiman, Chief Executive and other senior staff. The budget is revi8w8d regularly, and updates provided to the Trustees at each meeting and to the Chief Executive and senior team. Within these parameters, approval for individual commitments is disGussed at regular meetings involving senior staff and others as appropriate. An approval matrix is in place to manage expenditure inside and outside the scope of the budget. Prior lo a recommendation being made, a member of staff will have had detailed conversations with the individuals and organisations behind the programme or research project. The aims and expected outcomes of the partn8rship will have been clearty defined and a written proposal will have been submitted. Th8 tems and conditions of all partnerships are set out in a Letter of Agreernent or equivalent: any variation on the tems and conditions are agreed formally as a term of varianc8. Regular monitoring is a requirement of all commitrnents made and, in the case of larger grants and recurrent funding for programmes, the Trust is highly likely to Gommission an independent academic evaluation and to indude Ihe programme in its Evaluation Framework. Grant5 are generally paid in instalments, with each payment dependent on the production of an interim report, event milestones andlor staff and Trustees being salisfied with the progress being made through me8tings and conversations. Page 17 THE su￿oN TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024 PLANS FOR FUTURE PERIODS This year has marked a significant transition at the Trust. Sir Peter Lampl announced his decision to retire as Executs"ve Chair in July. The transition was planned over the summer, and as of the time of writing this report, lan Walsh has joined as non-executive chair, with Sir Peter Lampl remaining as a trustee. As mentioned 8arfier, we are currently wfreshing our strategy for the period trom 2025-2030. This strategy refresh paused this year as we went through the Chair transition, but we now expect it to complete in the first half of 2025. Looking foNard, we expect that our central approach will remain broadly the same, with a focus on directly supporting high ability, lowlmiddle income young people through our programmes, and our research and advocacy work tsking a wider look at the cause5 and potential solutions to low social mobility and educational inequality, from early years through to aC￿sS to the workplace. Moreover, we expect that key pillars of our forward strategy will include growing programme participants (with a mix of physical and digital d81ivery), strengthening our research and advocacy, and further growing and empowering our alumni community. STRUCTURE, GOVERNANCE AND MANAGEMENT Governing documont and constitution The Sutton Trust was In￿rporated on 15 February 2012. The Sutton Trust is a company limited by guarantee (number 07951541) and a registered charity (number 1146244). Its governing instrument is its Memorandum and Articles of Association. It does not have issued share capital and, as such, the ultimate control is vested in its Trustees. Trustees - Appointmont, Inductlon and Training The appointment of Trustees is govemed by the Articles of Associatlon of the Charitable Company. Wth the retirement of Sir Peter Lampl from the position of Exeujtive Chair in November 2024, the CharIt￿S Articles have been revised and Trustees. of which th8r8 must be at least two. are appointed by resolution of the Board of Trustees. Trustees, with the exception of th8 Founder, are typically appointed for a four-year term and may be appointed for an additional four-year term. At the end of the year, the Trust had six Trustees. Twstees aim to meet at least four times each year. New Trustees are made aware of their legal obligations under Charity Law and Company Law, the decision- making processes at the Charitable Company, its strategic aims and recent performance. They are also provided with a pack of relevant documentation. including a budget. strategy overview, a current list of research and programmes, and key policies and procedures. including Ihe Trust's safeguarding policy. In addition, new Trustees meet with the Senior team (ref8r to °Organisation' paragraph below). are given the opportunity to visit programmes and research events, and are also offered formal training as needed. The Trust8e induction process was last reviewed in 2024. The Trust's Commitment to Good Governance Code The Truslees reviewed the voluntary Code of Govemance and undertook an internal audit of existing processes against the recommendations in the Code in 2018. A further review was planned for the 2024 calendar year. However. as the Trusvs Executive Chai￿an announced his intention to step down from his role in July 2024 {with the new non-executive Chair of Trustees appointed in November 2024) and four Trustees being appointed between July and October 2024 (following a number of retirements), the review has been delayed to the first half of 2025. In the meantime, the Trustees are committed to principles of th8 Code and are proactively considering refreshed ways of working. Organlsallon The Trustees of the Charitable Company meet to discuss overall strategy and to detennine how best to dlrect its resources to meet its objectives. The Sutton Trust has a Chief Executive who reports to the Chair of TNstees. The Chief Executive oversees the Senior team comprising the Director of Development, Director of Page 18 THE surroN TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024 STRUCTURE, GOVERNANCE AND MANAGEklENT (contlnued) Organisation (contlnuad) Programrnes, Director of Research and Policy, Director of Communications and Public Affairs, and Director of Finan￿ and Operations. The Executive Team have responsibility for managing the staff of the Charilable Company. which at the end of 2023124 stands at 45 staff. Rèmuneration Policy The Sutton Trust is committed to making sure that employees are paid fairfy and in a way that helps attract and retain high calibre people in order to have the greatest impact in deliv8ring its charitable objectives. In accordance with the Statement of Recommended Practice (SORP). the Sutton Trust: Discloses all payments to Trustees (no Trustees re￿1ve 'pay', but they are reimbursed expenses) Discloses the number of employees paid more Ihan £60,000 pa (in bands of £10,000) Discloses pensions and other benefits gNen to employees During the year, the Trustee Board had delegated the responsibility for the authorisation of any pay increase (>£10k) to the Executive Chainnan, as part of the Sutton Trust approval matrix. The revised approval matrix is due to be signed off, following the retirement of the Executive Chaimian, in early 2025, During the year, the pay of the Chief Executive was set by the Executive Chairman. All oth8r salaries are set by the Chief Executive in consultation with the Senior Management Team using intemal pay scales. The remuneration benchmark is the mid-point of the range paid for similar roles adjusted for a weighting for any additional responsibllities. If recruitment has proven difficult in the recent past a market addition may also be paid. Pay is reviewed annually. and any increases guided by the Retail Prices Index (RPI) and perfonnance in the annual appraisal process. The Charity is a Liiing Wage employer and pays all its employees, including intems, at least th8 London Living Wage. Employee remuneration does not include any share options or long-temi incentive schemes. The period of notice of termination of contracts of employment is 3 months for the Executive Team. The pension provisions for the Chief Executive are set as part of their wider compensation package. The Executive Team are on the same temis as other employees. Auto enTolment takes place in line with pension legislation. Related Parties The Charity has no trading subsidiary. Sir P8ter Lampl, Executive Chaimian (until November 2024) and Truste8 of the Trust, also acted as the Chaimian of the Education Endowment Foundation (EEF) until December 2023, when he became the Chair Emeritus of the EEF. Sir Peter Gershon, Trustee of the Trust (until October 2024) also acts as a Trustee of the EEF. The EEF is a sister charity established by the Sutton Trust as lead partner with Impetus Trust in 2011 to break the link between family income and educational achievements. The Private Office of Sir Peter Lampl and the Sutton Trust share some staff and floor space. Transactions with related parties are disdosed in Note 14 to the financial statements. Intsrnal Controls and Rlsk Management The Trustees have responsibility for ensuring that the Charity has in plac8 an appropriate system of controls. financial or other*vise, to provide reasonable assurance that the Charity is operating effectively and in line with the Charity Commission guidelines. The systems of financial control were continually reviewed and improved where necessary during the reporting period to provid8 r8asonabl8 assuranc8 against material misstatament or loss. Page 19 THE surroN TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024 STRUCTURE, GOVERNANCE AND MANAGEMENT (conlinued) Internal Controls and Rlsk Management (continued) A full annual planning and budgeting process is in place, and the Charity considers risks as part of all its activities. Notable risks identified in the period and actions to miligate the impact include.. Throughout the pandemic and beyond, the Trust has experienced significant growth in its activities bolh through the expansion of its face-to-face activities and addition of digital activities, driven by the increased demand for its services. The Trust needs to continue to align its strategic prtorities with its funding trajectory to ensure expenditure does not significantly outgrow its income. particularly considering the recent cost-of- living crisis and its impact on direct and staff costs. Sustainability considerations are key as we finalise the Trust's 2025-30 strategy. With an increasingly challenging external fundraising environment. raising sufficient funding for all the Trusfs core activities remains a critical priority. In line with the Trust's new fundraising strategy and th8 transition lo a more dynamic fundraising appToach. the Trust seeks to diversfy its funding sources, attract new funders to the Trust and continue to grow unrestricted and other more flexible fvnding. Safeguarding programme participants, alumni. ernployees and others who come into contsct with the Trust is a critical priority for the Trust. The Trust has a strong safeguarding culture with annual review of policies and procedures, codes of conduct and annual training for staff and volunteers. In the year, we improved our crisis comms response plans, and are looking forward to an 8Xtemal review of our safeguarding procedu￿$ in the next year. Alongside welfare consideration, data prot8Ction is of significant importance and we continuously review and improve processes in this area, with the help of our extemal Dats Protection Officer and IT specialists. Following the recent general election, building relationships with the new govemment and influencing policy change through realistic. tailored asks is particularly important to further the Trust's social mobility mission. Furthermore, the Trust needs to ensure It remains a distinct and respected Vol￿ in a busier edU￿tiOnal landscape. Actions to mitigate the impact include darity in terms of focus and policy objectives. working with partners with a strong track record. speed of tumaround to ensure relevance and leveraging the link with the ongoing programme work being undertaken. Going Concem The Trustees confimi that the accompanying accounts comply with statutory requirements, the requirements of the Articles of Association and the requirernents of the Statement of Racommanded Practice on Acca)unting and Reporting by Charities (SORP 2019) (FRS 102). The Trustees have considered the financial budgel for the next finanaal year. 2024125. and its medium-term strategy. The Trustees also re￿￿tlY signed off the Trusfs new fundraising stralegy. which will set the foundations for future income diversification and growth. The pipeline for 2024125 is strong with a good level of projected fundraising income. The Trust is also looking ahead to a number of significant renewals for 2025126, engaging funders in advance to ensure the most favourable outcome and enable sufficient planning. The Trust continues to invest inlo its fundraising activities to ensure additional demands on budgets. through expansion as well as inflation are being met. Cost budgets are reviewed regularty and thoroughly for programmes and other activities, including administrative costs to ensure the continued sustsinability of the Trust. The level of unrestricted and designated funds held is considered suffirient to absorb the impact of unexpected volatility in the light of the political and economic landscape. and its potential implications on fundraising and programm8 delivery and support (s88 Reserve Policy on pages 15-16). Considaring the above. the Trustees believe that the Trust has adequate resources to continue successfully ft)r Ihe foreseeabl8 future. Therefore. the annual ￿pOrt and financial statements have been prepared on a going concern basis. Page 20 THE surroN TRUST REPORT OF THE TRUSTEES FOR THEYEAR ENDED 31 AUGUST 2024 STRUCTURE, GOVERNANCE AND MANAGEMENT (contlnued) Fundralslng Approach The Sutton Trust is a fflember of th8 Fundraising Regulator and is committed to following the Code of Fundraising Practice. The Trust raises the majority of its funds through large, multi-year grants and gifts from Trusts and Foundations as well as corporate and indivldual supporters. The Charity does not undertake any direct fundraising, such as door-to4oor collections, direct mailings or cold calling. Funding opportunilies are pursued through official channels, suth as application form, or via introductions by current supporters. In line with current dats protection regulalion, we only contact individuals with prior consent. The Charity ensures that grant and gift agreements are in place with its supporters. In 2023124, the Charity did not have any Commercial Participators. The Charity completes a due diligence prO￿sS for all new supporters. Development Team stsff are kept upto-date on fundraising best practice. The Charitys complaints procedure is available on the Trust's website. For staff, this Is also avallable in the staff handbook. In 2023124, we received no complaints relallng to fundraising. The Charity is nol aware of any breaches of fundraising regulations by the Charity or by any parson acting on its behalf. Pag8 21 THE su￿ON TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024 TRUSTEES. RESPONSIBILrriES STATEMENT The Trustees (who are also directors of The Sutton Trust for the purposes of company law) are responsible for preparing the Report of the Trustees (induding the Strategic Report) and the financial slatements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted AcC￿nting Practice). Company law raquiras the Trusteas to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial ststements unless they are satisfied that they give a true and fair view of the state of affairs ol the Charitsble Company and of the incoming resources and application of resources, including the income and expenditure, of the Charitable Company for thal period. In preparing these financial statements, the Trustees are required to: S818cl suitab18 accounting policies and then apply them consistently; obserde the methods and principles in the Charities SORP 2019 (FRS 102); make judgements and estimates that are reasonable and prudent. stale whether applicable UK accountlng standards have been followed, subject to any material departures disdosed and explained in th8 financial statsments; and prepare the financial statements on the going concern basis unl&ss it is inappropriate to presume that the Charilable Company will continuo in operation. The Truslees are responsible for keeping adequate accounting records that disclose with raasonable accuracy at any time the financial position of the Charitable Company and enable them to ensure that the financial statements ¢(￿nplY with the Companies Act 2006. They are also responsible for safeguarding Ihe assets of the Charitable Company and hence for taking reasonable steps for the prevenlion and detection of fraud and other irregularities. In so far as the Trustees are aware: there is no relevant audit infomiation of which the Charitable Company's auditor is unaware; and the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit infonnation and to establish that Ihe auditor is aware of thal infonnation. The Trustees are responslble for the malntenance and integrity of Ihe corporate and financial infomiation Induded on the Charitable Company's webslte. Leglslallon in the United Kingdom goveming the preparatlon and dlssemination of financial ststements may dlffer from leglslation In other jurisdictions. Page 22 THE su￿ON TRUST REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2024 AUDITOR A resolution will be proposed at the next Trustees. meeting that Rawlinson & Hunter Audit LLP be re-appointed as auditor to the Charitable Company for the ensuing year. In approving the Report of the Trustees, the Trustees also approve the Strategic Report induded therein, in their capacity as company directors. by the Trustses and signed on their behalf by T• Date: iolo(t(p>S Page 23 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE surroN TRUST Opinion We have audited th8 financial ststements of The Sutton Trust ('the Charitable Companf) for the year ended 31 August 2024 whith comprise the Stalem8nt of Financial Activities (incorporating the Incom8 and Expenditure Account). the Balance Sheet. the Statement of Cash Flows and notes lo Ihe finanaal 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, induding Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland {Unitsd Kingdom Generally A¢￿pted Accounting Praclice). In our oplnion the financlal statements: give a true and fair view of the state of the Charitable Company's affairs as at 31 August 2024. and of its incoming resources and application of resources, induding its income and expenditure, for the year then ended: have been properfy prepared in accordan￿ with United Klngdom Generally Ac£epted Accounting Practice: and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for oplnion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those stsndards are further described in the Auditorfs r8sponsibilities for the audit of the financial statements section of our r6POrt. We arè independent of the Charitable Company in accordance with the elhical requirements that are relevant to our audit of the financial statements in the UK. including the Flnancial Reportlng Council's Ethical Standard, and we have fulfilled our other ethical re8ponsibilitles In accordance wlth Ihese requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclu8lon relating to going concern In auditing the financial statements. we have conduded that the Trustses, use of the going con￿rn 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 Charitable Companvs ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Truslees with respect to going concem are described in the relevant sections of this report. othér Inforniation The Trustees are responsible for the other infomation. The other Infomiation comprises the infomiation induded in the Report of the Trustees {incorporating the Strategic Report and the Directors. Report) and Financial Ststements, other than the financial ststements and our auditorfs report thereon. Our opinion on the financial statements does not cover Ihe other infonnation and, except to the extent otheThvise explicitly ststsd in our report, we do not express any fomi of assuran￿ condusion thereon. Page 24 INDEPENDENT AUDrroR'S REPORT TO THE MEMEBERS OF THE surroN TRUST Other infomiatlon (¢ontlnued) Our responsibilty is to read the other Information and, in doing so, consider whether the other infomalion is materially inconsistent with the financial statements or our knowledge obtained in the audit orothenmise appears to be matertally misstated. If we idenlify such material inconsistencies or apparent material misststements, we are required to detemine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have perforTned. we condude that there is a material misststement of this other information. we are required to report that fact. We have nothing to report in this regard. Opinlons on other matters prescribed by the compani￿ Act 2006 In our opinion, based on the work undertaken in the course of the audit: the information given in the Report of the Trust8es (incorporating the Strategic Report and Ihe Directors, Report) prepared for the purposes of company law for the financial year for which the financial ststements are prepared is consistent with the financial statements; and the Report of the Trustees (Incorporating the Strategic Report and the Directors, Report) has been prepared in accordance wlth applicable legal requirements. Matters on whlch we are requlred to report by axceptlon In the light of our knowledge and understanding of the Charitsble Company and its envlronment obtained in the course of the audit, we have not identified material mlsststements in the Report of the Trustees (incorporatlng Ihe Strategic Report and the Directors, Report). We have nothing to report In respect of the following matters In relation to which the Companies Act 2006 requires us to report to you if, in our opinion: adequate accounting records have not been kept, or retums adequate for our audit have not been received from branches not visited by us; or the financial statements are not in agreement with the accounling records and returns; or Certain disclosure5 of Trustees, remuneration specified by law are not made; or we have not re￿iVed all the information and explanations we require for our audit. Responsibilitles of Trnstees As explained more fully in the Trustees, Responsibilities Statement set out on page 21. the Trustees (who are also the directors of the Charitable Company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a Irue and fair view. and for such intemal 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 Trustèes are responsible for assessing the Charitable Company's abilty to continue as a going concem. disclosing, as applicable. matters related to going concern and using the going concem basis of accounting unless Ihe Trustees either intend to liquidate the Charitable Company or to cease operations, or have no realistic altematlve but to do so. Page 25 INDEPENDENT AUDITOR'S REPORT TO THE MEMEBERS OF THE surroN TRUST Auditorfs rosponslbllhlos for tho audlt of tho financlal slatements Our objectives are to obtain reasonable assurance about whether the finandal statements as a whole a￿ free from material misstatement, whelher due to fraud or error. and lo issue an Auditorfs 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 misslatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in Ihe aggregate, they could reasonably be expected to inftuence the economic decisions of users tsken on the basis of these financial statements. Irregularilies, induding fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities. outlined above, to detsct material mlsstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, induding fraud is detsiled below. Ourassessment of the suscepth'bility of the Charitable Companvs financial statements to malerial misstatement, including how fraud might occur, is considered to be low. This condusion was reached after the consideration of the followlng: due to the relatively low volume of transactions we have high visibilty to all the malerial transactions and adjustments. due to the relatively simple operational model of the Charitable Company there are comparatlvely few unexpected fluctuations in the reported results and balances and any such unexpected items woukl be specifically enquired into by us; and there are a number of individuals which comprise "managemenf and therefore there is no single individual who is likety to be able to override controls to effect a fraud. We deslgned our audit procedures to respond to identified audit risks, including non-compliance with laws and regulations (irregularities) that are material to the financial statements. Some of the specific procedures perfomied to detect irregularities, induding fraud, are detailed below: discussions with management involved in Ihe risk and compliance functions including ojnsideration of known or suspected instances of non-compliance with laws and regulation and fraud: the analytical review of the detailed Statement of FlnancAal Activities for variances that are elther un8xpected or considered not to be in accordance with our understsndlng of the Charitable Company durlng the year; obtaining and reviewing for completeness a Ilst of entities and persons considered to be related parties (as defined by Financial ReportiNJ Standard 102} and reviewing the ledgers of the Charitable Company for prevlously unreported related paty transactions; reviewing cxirrespondence and agreements between the Charitable Company and its grantees, and discussion with the management in relation to their compllance with tho Charities SORP FRS 102; reviewing correspondence and agreements beiween the Charitable Company and its donors, and discussion with the management in relation to compllance with the Charities SORP FRS 102; review of the Trustees, meeting minutes to identify unrecorded transactions. and deslgning audit procedures to incorporale unpredictsbility around the nature, Ilmlng or extent of our tsstlng. Page 26 INDEPENDENT AUDITOR'S REPORT TOTHE MEMEBERS OF THE SUTTON TRUST Auditorfs rosponsibilities for the audlt of the flnanclal stslements (contlnued) Because of the inherent limitations of an audit and the audit procedures descrlbed above. there is an unavoidable risk that we will not have detected all irregularities, including some leading to material misstatements in the financial statements. even though we have properly planned and perfomi8d our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and gulations (irregularities) is from the events and transactions refl8ct8d in the financial statements. the less likely the inherently limited procedures required by auditing stsndards would Identify it. In addition, as with any audlt, there rémains a higher risk of non-detection of irregularitles occurring due to fraud rather than error. as fraud involves intentional concealment, collusion, forgery, intenlional omissions, mlsrepresentstions, or the override of intemal controls. We are not responsible for preventing non-compliancé and cannot be expected to detect noncompliance with all laws and regulations. A further description of our responsibilitses for the audit of the financial statements is located on the Financial Reporting Council's website at.. www.frc.org.uklaudilorsresponsibilities. This description fonns part of our auditorfs report. Use of our report This report is made solely to the Charltable Company's members, as a body, In accordance wrth Chapter 3 of Part16 of the Companies Act 2006. Our audit work has been undertaken so that we might stats to the Charitable Companls membars those matters we are required to state to them in an auditorfs report and for no other purpose. To the fvllest 8Xt8nt pennitted by law, we do not accept or assume responsibility to anyone other than the Charitable Company and the Charitable Company's members as a body, for our audit work, for this report, or for the opinions we have formed. Kulwam Nagra (Senior Statutory Auditor) For and on behalf of Rawllnson & Hunter Audit LLP Statutory Auditor Chartered Accountants Eighth Floor 6 New Street Square New Fetter Lane London EC4A 3AQ Dat8: 1 o rf,120 L Page 27 3 ¢LI THE SUTTON TRUST BALANCE SHEET FOR THE YEAR ENDED 31 AUGUST 2024 Nots 31 August 2024 31 August 2023 Flxed assets: Tangible assets Investments 51,315 7,771,692 66,720 7,102,079 9&21 7,823.007 7,168,799 Current assets: Debtors Cash at bank and in hand 10 21 910,328 8,612.746 648.914 9.545,346 9,523,074 10,194.260 Current liablllties: Creditors- amounts falling due within on8 year 11 (2,544,031) (2,451,489) Net current assats 6,979.043 7,742,771 Totsl assets less currant liabiliti•s 14,802,050 14,911,570 Creditors - amounts falling due after more than one year 12 (5.073,505) (4,570,706) Total nat assets 9.728,545 10.340,864 The funds of the Charitable Company: un￿strICted - g8n8ral fund designated fijnd Restricted Income fund 18&19 18&19 18&19 5,284,196 2,337,116 2,107,233 4,988.768 2,150.608 3.201,488 Total Charitable Company funds 18&19 9,728,545 10.340.864 The financial statements were approved by the Trustses and authorised for issue and signed on their behalf by: lan Walsh Trustee Date: Ic> (0*(20>S The notes on pages 31 to 53 form part of thes8 financial statements Page 29 THE su￿ON TRUST STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2024 Year ended 31 August 2024 Year ended 31 August 2023 Nel cash oufflow from operating activities 15 (1,176,814) (474,919) Cash inflowl(oufflow) from Investlng activities Interest income Dividend income Purchase of fixed assets Purchase of investments Proceeds from disposal of invesbnents 156,047 46,462 (12,948) (1,612,409) 1,667,062 129,503 45,776 (35,563) (1,724.559) 1,859,492 Net cash Inflow from investing actlvilies 244,214 274,649 Net docreaso In cash and cash equivalents (932,600) (200,270) Cash and cash equlvalents brought forward 9,545,346 9.745,616 Cash and cash equivalants carrfed forward 8,612,746 9,545,346 Cash and cash equivalents consists of: Cash at bank and In hand 8,612.746 9,545,346 Cash and cash equlvalents at 31 August 8,612,746 9,545,346 Cash held at year end was £8.6m <2023 - £9.5m). £3.6m of this relates lo restricted funds (2023 - £4.6m) and £5.Om to unrestricted funds (2023 - £4.9m). The notes on pages 31 to 53 fonn part of these financial statements Page 30 THE surroN TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 ACCOUNTING POLICIES G•neral Inforniation The Sutton Trust ("the Trust". Wia Charity" or °Charilable Companl.) is a registered charity (charity number 1146244) limited by guarantee, whose principal object is to support charitable purposes in whatever manner the Trustees, in their absolute discretion, think fit. The TNstees' overriding aim Is to promote social mobllity by improving the educational opportunities available to non-privileged young people in the United Kingdom, through research, policy work and programmes. The policy of the Charitable Company is to seek sufficient finance to continue to fund its charitable activities. In the event of the Charitable Company being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charitable Company. The address of the registered office is givan on page 2 of these financial ststaments. Bas1$ of preparation The financial statements have been prepared in accordan￿ with Accounting and Reporting by Charities: statement of Recommended Pra¢tiC8 applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (issued in October 2019) (°Charities SORP FRS 102°), the Financial Reporting Stsndard applicable in the United Kingdom and Republic of Ireland (FRS 102}, the Charities Act 2011, and where relevant, the Charities Act 2022, the Companles Act 2006 and UK Generally Accepted Practi￿. The Trust constitutes a public benefit entity as defined by Charities SORP FRS 102. The financial ststements are prepared on a going concem basis and under the historical cost convention, except in respect of its fixed asset investments which ar8 carried at market value. The financial statements are prepared in Sterfing which is the functional currency of the Charitsble Company. The significant accounting policies applied In the preparation of these finanaal staternents are set out below. These policies have been Consistently applied to all years presented unless otherwise stated. Income Income is recognised once the Charitable Company has entitlement to the funds and it is probable Ihat the fijnds will be received within the Charitable Company or on behalf of the Charitsble Company and the monetary value of incoming resources can be measured viith suffiaent reliability. Donalions from Co-sponsors, whether paid through the Charitsble Company or dlrectly to the grantees, are also recognlsed in the financial ststeménts, within donation income, when the Charitable Company acts as 'Prinapal" for Ihese projects. A corresponding donation expense is recorded in respect of these donations such that there is no net impact on the Statement of Financial Activities (refer to °Expenditure" below for details). Donated servlces and facilities are included at Ihe value to the Charitable Company where this can be quanlified. Donation income is deferred when the donalions are received in advance and specified by the donor as relating to specific accounting periods or altematively which are subject to conditions which are still to be met and which are outside the control of the Charitable Company. or when It is uncertain whether the conditions can orwill be met. These are deferred to the year to which they relate and released to incoming resourcès in that year. Page 31 THE SIITTON TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 ACCOUNTING POLICIES (contlnued) In¢oma (continued) For legacies, entitlement is the earlier of the Charitabl8 Company being notified of an IM￿ndIng distribution or the legacy being re￿ived. At this point income is recognised. Where legacies are notified to the Charitsble Company and it is not possible to measure with sufficient reliability the amount expected to be distributed. these legacies are not recognised. Investment income Investsnent income represents Interest receivable from bank deposits, dividends, interest and fixed income receivable from listed investments. Expondlture All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs r61ated to that category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. The costs of raising funds consist of direct slaff costs and other support costs for fundraising. Charftable activities indude grants payable to third parties in furtherance of the charitable objeclives of the Charitable Company and include both the dlrect costs and support costs relating to these activltles. They include grants pald dlreclly lo grantees by co-sponsors where the Charftsble Company acts as "Principal. for these projects (refer to "Income. above for detalls). Irrecoverable VAT Is charged as an expense agalnst the activity for which expenditure arose. Grants payable are to third parties in furtherance of the charitable obj8Ctives. Where unconditional grants are offered, the value of the grants is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grant. Where grants are conditional relating to performance then the grant is r8cognlsed to the extent that the recipient of the grant has provided the specnled sen41￿. Support costs allocatlon Support costs relate to those functions that assist the work of the Charitable Company but do not directly undertake charitable activlties. Support costs indude back-office costs, finance, personnel, payroll and govemance costs which support the Trust's programmes and activities. These costs have been allocated between "Cost of raising fvnds" and "Charitable activities.. status of funds Unrestricted funds are available for use at the discretion of the Trustees in knrth6rance of the general objectiV8s of the Charitsble Company, and which have not been designated for other purposes. Designated funds comprise Un￿strICted funds thal have been set aside by the Trustees for particular purposes. The aim and use of each designated fund, rf any. is Set out in the notes to the financial statements. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charitable Company for partlcular purposes. The cost of raising and administering such funds are charged against the specific fund. Th8 aim and use of each restricted fund is set out in the notes to the financial statements. Page 32 THE SUThON TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 ACCOUNTING POLICIES (contlnuod) ststus of funds (continued) The list of grants is detailed in Note 3 to the financial ststemenls and the purpose of these grants is to provide educational opportunities for young people from non-privileged backgrounds and to fund related research and policy work. Tanglble flxgd assets and dapreciation Tangible fixed assets are stated at cost less depreciation. Provision for depreciation of tangible assets is made at rates calculated to write off the cost of the assets, lass their estimated residual values. over their expected working lives. Th8 rates of depreciation are as follows: over the lease period of 41 months 15Yo Straight line 250/0 Straight Ilne Leasehold improvements Fumiture and fittings Computer equipment Invostments Investments are r8cognised initially at cost which is nonnally the transaction price Including transaction costs. Subsequently, they are measured at fair value with changes recognised in 'net gains l (losses) on investments, in the Statement of Financial Activities if the shares are publicly traded or their fair value can otherwise be measured reliably. The fair valu8 of listed investments is detemined by reference to the quoted price being the Stock Exchange mid-price. Realised and unrealisod galns and losses Realised gains and losses are recognised on disposal of investments. Unrealised gains and losses are recognised on the market value of investments at the balance sheet dat8. Debtors and credltors receivable I payablo wlthln one year Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impaiment are recognised in expenditure. Flnancial instruments The Charitable Company only has financial ass8ts and finanaal liabilities of a kind that qualify as basic finanaal instruments. Basic financial instruments are recognised initially at transaction cost and subsequently at amortised cost. Provisions Provisions ar8 recognised when the Charitable Company has an obligation at the balance sheet date as a result of a past 8V8nt, it is probable that an ouffiow of economic benefits will be required in settlement and the amount can be reliably estimated. Forelgn currencies Foreign currency transactlons are translated into Ihe functional currency, Sterfing. using the spot exchange rates at the dates of the transactions. At each period end foreign currency monetary items are translated using the closlng rate. Non-monetsry items measured at historical cost are translated using the exchange rate at the date of the transaction Page 33 THE SUTTON TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 ACCOUNTING POLICIES (contlnued) Foreign currenGles (contlnued) and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. Foreign exchange gains and losses resulting from the setuement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Financial Activities. Employee benefits When employees have rendered service to the Charitable Company. short-term employee benefits to which the employees are entitled are recognised al the undiscounted amounl expected to be paid in exchange for that service. The Charitable Company contributes to defined contribution plans for th8 benefit of its employees. Contributions are expensed as they become payable. Tax The Charitable Company is an exempt charity within th8 meaning of Schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a Charitable Company for UK corporation tax purposes. Going concem The Trustees have considered the relevant financial risks and the ability of the Charitable Company to continue in operational existen￿ for the foraseeable future. Having considered the level of funds held and reviewed a robust PlP81ine of pledges and projected fundraising income together with the detailed cost budgets for each programme and activity induding administrative costs for the 12 months from authorising these financial statements, the Trustses have a reasonable expectation that the Charitable Company has adequate resources to continue in operational existence for the foreseeable future and henc8 consider the adoption of the going concern basis in preparing these financial statements is appropriate. Operating lease Rents15 under operating leases are charged to the Statement of Financial Activities as they are incurred. Benefits re￿iVed and receivable as an incenlive to sign or continue an operating lease are recognised on a straight line basis over the period until the date the rent is expected to be adjusted to the prevailing market rate. Judgements and key sourcas of astimation vncertalnty In preparing financial statements. the Trustees have to make judgements on how to apply the Charitabla Company's accounting policies and make estimates about the future. The critical judgements that have been made at arriving at the amounts recognised in the financial statements and the key areas of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying value of assets and liabilities in the next financial year, are discu&sed below: Future grants payablo provision Future grants payable ar8 only provided for In the financial ststements wh8n there is a constructive or legal obllgation for the Charltable Company to pay out future grants at the period end, which is dependent on the temis and condltions of the grant agreement between the Charitabl8 Company and the grant beneficiary. Page 34 THE su￿ON TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 INCOME Unrnthcted Designated TOTAL Fun(ts Funds FU￿18 FUNDS Year ended 31 Year ended 31 Yaar ended 31 Year ended 31 August 2024 August 2024 August 2024 August 2024 The income comprised.. Donations Donated services ' Legacies Dividends Bank interest 1,901.796 300.000 1,000 4,700,008 358,351 6.601,804 658.351 1.000 46.462 156,047 41,561 9,626 4,901 9.335 137.086 2,339,882 51,187 5,072,595 7,463.664 Other losses foreign exchange dlsposal of fixed asset (453) (407) (337) (790) (407) (860) (337) (1,197) The income arose from the following geographical locations: Year ended 31 August 2024 Year ended 31 August 2024 Year anded 31 August 20 Year ended 31 August 2024 US and Canada UK including the Channel Islands Monaco 413,347 1,916,535 10,000 1.358,808 3,713,787 1,772,155 5,681,509 10,000 51,187 2.339,882 51,187 5,072,595 7,463,664 Donated services above consists of pro bono charitable activities undertaken by extemal providers on behalf of the Charitable Company, and also strategy and planning expenses included within support costs. Page 35 THE SUThON TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 INCOME (contlnued) TOTAL Funds Funds Funds FUNDS Year onded 31 Year ended 31 Year ended 31 Y•ar ended 31 August 2023 August 2023 August 2023 August 2023 The income comprised: Donations Donated serviixs ' Legacies Dlvidends Bank interest 1,898.261 4,317,603 220,000 6,215,864 220,000 512,142 45.776 129.503 512.142 41,139 5.788 4,637 7,101 116.614 2,527,017 46,927 4,549,341 7,123,285 Other galnsl(losses) - foreign exchange dlsposal of fixed asset (274) 1,003 (35) {309) 1,003 729 (35) 694 Year ended 31 August 2023 Year ended 31 August 2023 Year ended 31 August 2023 Year ended 31 August 2023 The income arose from the following geographical locations: US and Canada UK including the Channel Islands Monaco 246,849 2,270,168 10,000 1,550.157 2,999.184 1,797,006 5,316,279 10,000 46,927 2,527,017 46,927 4,549,341 7,123,285 'Donated services above consists of pro bono charitable aclivilies undertaken by extemal providers on behalf of the Charitable Company, and also strategy and planning expenses induded within support costs. Page 36 THE SUThON TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 LIST OF GRANTS MADE AND OTHER ACTMTIES FOR CHARITABLE PURPOSES DURING THE YEAR ENDED 31 AUGUST 2024 Access programme8 for unlver8ity and the professlons Alumni Engagement Programme Paris Olyrnpics - Educational Backgrounds Access Apprenticeships (previously Apprenticeship Parliamentary Privilege Summer School) Fair Opportunity for All Pathways to Banking and Finance Social mobility and opportunity Pathways to Engineering School Funding and Pupll Premium Pathways to Law Refoming student maintenance - Election Briefing Pathways to Mediclne Closing the attainment gap- Election Briefing Pathways to Banking and Finance (Online) Inequality in Earfy Years Education - Election Pathways to Consulting (Online) Briefing Pathways to Law (Online) Selective Comprehensives Opportunity Bursary Sludent Maintenance Analysis Careers Skills Bursaryl Sutton Trust Careers COSMO Wave 2 - Post 18 Opportunities Launch Pad Cabinet analysis Sutton Trust Careers Plus (Law) COSMO Wave 2 - Mental and Physical Health Sutton Trust Online 25 Years of University Access Teacher Champions UK Summer Schools US Programme Research and pollcy Early yaars and primary school programmes Communication and Language Project Innovation Access to the Creative Industries School Admissions Tech Taskforce Page 37 THE SUTTON TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 LIST OF GRANTS MADE FOR CHARITABLE PURPOSES DURING IHE YEAR ENDED 31 AUGUST 2024 (continued) UnRstrlcted Deslgnated Totsl Funds Funds Funds Total number Year Year Year Year Yaar ended 31 ended 31 endod 31 ended 31 ended 31 August 2024 August 2024 August 2024 August 2024 August 2024 Grants payable to institutlons Grants payable to Individuals 1,539,288 7,500 1,539,288 7,500 104 Totsl grants payable (see Note 1,546,788 1,546,788 107 Totsl number 107 107 Unrnstricted Deslgnated Total Funds Funds Funds Total number Year Year Year Year Year ended 31 ended 31 ended 31 •nded 31 endod 31 August 2023 August 2023 August 2023 August 2023 August 2023 Grants payable to institutions Grants payable to indlvlduals 1,579,094 1,579.094 159 Tolal grants payable (see Note 4) 1.579,094 1,579,094 159 Total number 159 159 The grants payable above exclude other direct charltable programme expenses payable to the grantees. See the grant-making policy on page 16 of the Report of the Trustees on how the grants relate to the objects of the Charftable Company. Page 38 THE surroN TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 CHARrrABLE ACTIVITIES Grants (Note 3) Direct costs Staff costs (Note n Support Costs (Note 5) Year ended Y•ar ended Year ended Year ended Year •nded Year ended 31 August 31 August 31 August 31 August 31 August 31 August 2024 2024 2024 2024 2024 2024 Pro bono work Total University outreach Schoolslcolleges Innovation Earfy years Research projects 831,966 690,589 1,602,660 283,747 4,029 3,025 219.394 884,720 184,919 187,861 16,164 411,350 1,184,514 449.532 74,410 16,838 244,588 12.234 6,117 4,516,094 1,614.904 266,300 60,260 1.215,332 24,233 340.000 1,546,788 2,112,855 1,685,014 1,969,882 358,351 7,672,890 Costs of ralslng funds 21,018 410,479 149,044 580.541 Unrestrlcted Funds FUNJS Total Charltable expondlture 1,660,789 6.012,101 7.672,890 Grants (Nole 3) Direct Costs Staff costs (Note 7) Support Costs (Note 5) Yoar •nded Year ended Year ended Yoar ended Year ended Yoar endad 31 August 31 August 31 August 31 August 31 August 31 August 2023 2023 2023 2023 2023 2023 Pro bono worf( Total University outreach Schoolslcolleges Innovats'on Early yaars Research projects 765,201 700,850 1,967,883 211,628 667 71,698 324,047 992,365 109.330 65.944 29,320 218.481 867.129 294,917 26,492 64,020 176,038 4,592,578 1,316,725 93,103 278,081 718,566 113,043 1,579,094 2.575.923 1,415,440 1,428,596 6,999,053 Costs of raising funds 49.055 451,259 128,310 628,624 Funds Total Charitable expnditure 1,274.785 5,724,268 6,999.053 Page 39 THE su￿oN TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 ANALYSIS OF SUPPORT COSTS Charitable Activities Year ended 31 August 2024 Fund ralsing (Un￿Strfcted} Year ended Year ended 31 August 31 August 2024 2024 Tolal Wages and salaries (Not6 7) Other stsff ¢osts-travel I recruitment etc. Administration Strategy and Planning Premises (net of recharges) Audit & other Accountsncy Legal Public rolafjons Depreciation (Note 8) 847,512 112,795 157.673 278,898 190,524 38,674 64,570 58,966 194,289 25,981 64,124 8,534 11,930 21.102 14.415 2,926 4,886 4,461 14,700 1,966 911,636 121.329 169,603 300,000 204,939 41,600 69,456 63,427 208.989 27,947 1,969,882 149,044 2,118,926 Charitable Activities Year ended 31 August 2023 Fund ralslng (unrestricted) Year onded Year ended 31 August 31 August 2023 2023 Total Wages and salari88 (Note 7) Other stsff costs-travel I recruibnent etc. Administration 550,861 167,879 158,766 49,476 15,078 14,262 600,337 182,957 173,028 FJJJ Strategy and Planning Premises (net of recharges) Audit & other Accountancy Legal Publlc relations Depreclation (Note 8) 201,869 165,719 30,280 11,389 31,557 82,447 27,829 18,131 14,884 2,720 1.023 2,834 7,405 2,497 220.000 180.603 33,000 12,412 34,391 89,852 30,326 1,428,596 128,310 1,556.906 Govemance costs indude costs incurred on slralegy and planning, the annual audit and any relevant legal fees. Page 40 THE surroN TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 NET INCOME AND NET MOVEMENT IN FUNDS FOR THE PERIOD Thls Is stated after charylng: Y•ar ended 31 August 2024 Year ended 31 August 2023 Operating leases- land and buildings Depreciation Loss on disposal of fixed assets Auditor's remuneration.. Audtt sepiices 131,162 27,947 407 122,796 30,326 1,832 38,000 33,000 STAFF COSTS Year •nd8d 31 August 2024 Yaar ended 31 August 2023 (a) Salaries National Insurance Pension contributions 2,482,986 272,825 251.319 2,093.847 163,201 209,988 3,007,130 2,467,036 Induded in the staff costs are consultancy fees of £Nil (2023 - £236,553) payable to key management personnel who is not an employee. Also included in th8 Staff costs are staff costs (inclusive of Nl and pension contributions) recharged to th8 Charitsble Company by the Chairnian's private office of £75,933 (2023 - £63,57T). £2,086 (2023 - £1,573) was due orb pension plans for those shared employees. The Trustees. who are also directors of the Charitable Company, received no remuneration for their services during the year ended 31 August 2024 (2023 - £Nil). See Note 14 for other Tru8t8e related transactions. The key management personnel of the Charftable Company comprise the Trustees, the Chief ExecutNe and the Executiv8 Team. The total employee ben8flts of the key management personnel of the Trust were £858,332 {2023 - £751,512). The Charitabla Company contributes to the defined ￿ntributiOn personal pension plans of certain employees and contributions are charged in the Slatement of Finanaal Activities as thay become payable. The charge for the year was £251 ,319 (2023 - £209,988). Of these contributions, £20.717 (2023- £17,933) were due to these plans by the Charitable Company al the year end Page 41 THE surroN TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 STAFF COSTS (Continued) Year ended 31 August 2024 No. Year ended 31 August 2023 No. (b) Number of staff Programmes Innovation Research Fundraising Administrallon 21 20 11 10 47 44 (c) Employees, remuneration over £60,000 per year The number of employees who recelved total employee benefits (exduding employer pension costs) of more than £60,000 for the year Is as follows: £60.001 to £70.000 £70,001 to £80.000 £80,001 to £90.000 £90,001 to £100,000 £110,(K11 to £120.000 £240,001 to £250,000 Employers, pension contributions in respect of these 7 (2023- 6) employees amounted to £38.136 (2023 - £27.416) during th8 period. TANGIBLE FIXED ASSETS Furniture and flttlngs Leasehold Improvements Computer equlpment Cycle scheme Total Cost At 1 September 2023 Additions Disposals 143,766 120,762 3,630 (26,042) 158,264 8,276 (5,962) 422,792 12,948 (32,004) 1,042 At 31 August 2024 143.766 98.350 160,578 1,042 403,736 Depreclatlon At 1 September 2023 Charge for period Disposals 143,766 108,355 4,086 (26,042) 103,951 23,105 (5,556) 356.072 27,947 (31,598) 756 At 31 August 2024 143,766 86,399 121,500 756 352,421 Nat book valu• At 31 August 2024 11,951 39,078 286 51,315 At 31 August 2023 12,407 54,313 66,720 Page 42 THE su￿ON TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 FIXED ASSET INVESTMENTS 31 August 2024 31 August 2023 Inveslments comprise: Rathbones JP Morgan 2.250.280 5.345,661 2.105.183 4,927.133 Tolal equity, bond and other investrnents Cash held as part of portfolio 7,595,941 175.751 7,032,316 69,763 Total Inv•stments and cash under management 7,771.692 7,102.079 Gainl(loss) on inveslments in the period: Realised gainsl(losses) Unrealised gainsl{losses) 3,821 720,445 (17,997) {33,978) Total gainl{loss) on Investments In the period 724,266 (51,975) Included in= Deferred income Statement of Financi81 Activities 545,621 178.645 56,636 (108.611) 724,266 (51,975) Page 43 THE surroN TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST2024 FIXED ASSET INVESTMENTS {continued) 31 Augusl 2024 31 August 2023 Total Total Market value At 31 August 2023 Additions Disposals Net reallsed investrnent gainsl(losses} Unrealised investment gainsl(losses) 7.102,079 7,288,987 1.612,409 1,724,559 (1.667,062) (1,859,492) 3,821 (17.997) 720,445 (33.978) At 31 August 2024 7,771,692 7,102,079 The following investments represent malerial investments (more than 50/0 of the totsl investment pothlio) of the Charitable Company: Market Value Percentage of totsl 31 August 2024 31 August 2024 Vanguard S&P 500 ETF HSBC Global Fund ICAV 1,848.242 416,147 23.8 Market Value Percentage of total 31 August 2023 31 August 2023 Vanguard S&P 500 ETF HSBC Global Fund ICAV 1,540,626 487.294 21.7 10. DEBTORS 31 August 2024 31 August 2023 Debtors - donations and legacies receivable Other debtors Prepayments and accrued Income 269,833 687 639,808 70,806 853 577,255 910,328 648.914 Page 44 THE SUTTON TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST2024 11. CREDITORS - Amounts falling due wlthln one year 31 August 2024 31 August 2023 Accruals for grants payable Trade creditors Taxation and social security other creditors Accruals and deferred income (Note 13) 1,359,636 417,203 67,478 11.767 687,947 1,140.755 418,824 64,486 7,928 819.496 2,544,031 2,451,489 12. CREDITORS - Amounts falling due after more than one year 31 August 2024 31 August 2023 Other creditors Accruals and defèrred income (Note 13) 5,115 5,068,390 9,839 4,560.867 5,073,505 4,570,706 The fair value of the long tem creditors is not rnaterially different from the amounts shown above. 13. DEFERRED INCOME 31 August 2024 31 August 2023 Balance as at 1 September 2023 Amount deferred in the period Amount released to incom& 5,232,650 1,300,930 (921 ,783) 5,109.731 657.450 (534,531) Balance as at 31 August 2024 5,611.797 5.232,650 Deferred income represents grants and donations received in advance and is included withln accruals and deferred income in Notes 11 and 12 above. Page 45 THE SUThON TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 14. TRANSACTIONS WITH TRUSTEES AND CONNECTED PERSONS No Trustee received any remuneration during the year ended 31 August 2024 (2023- £Nil). Trustees. expenses During the year Sir Peter Lampl charged the Charitable Company £75.933 (2023- £63,577) for the shared use of some employees (see Note 7a), benefits and expenses incurred by him on behalf of the Charitable Company. During the year Sir Peter Lampl was charged £38.332 (2023 - £51,284) for general administrative costs incurred by the Charitable Company on his behalf. £8,238 (2023 - £4, 759) was owed lo Sir Peter Lampl at the year end. This amount was settled promptly after the year end. Donations from Trustees During the year, no donations (2023 - £314,241) were re￿iVed from Sir Peter Lampl and £80,000 of deferred donations made in previous years were matched and released as income during the year (2023 - £3Q.640). During the year. donations of £138,061 {2023- £120,000) were received from other Trustees. Other Slr Peter Lampl and Sir Peter Gershon. who were Trustees of the Sutton Trustduring the year (but retired shortly after the year-end), were also the Chair of Trustees (until 31 December 2023) and a Trustee of the EEF, respectlvely. Until 31 December2023. the EEF shared certain office premises held bythe Sutton Trust under a licence agreement for which it paid a commeraal rent for the use of th8 space and related overhead service. In the year the Sutton Trust charged the EEF £4,088 (2023- £18,094) for office space and overheads, £7,456 (2023 - £nil) for some staff costs and £nil third-paty expenses (2023 - £1,506). £686 (2023 - £853) was owed to the Sutton Trust by the EEF at the year end. 15. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES Year ended 31 August 2024 Year ended 31 August 2023 Net income and net movement in funds Interest receivable Dividends receivable Unrealised (gain)Iloss on investments (Note 9) Realised (gain)Iloss on investments (Note 9) Depreciation of tangible fixed assets Loss on disposal of fixed assets (Increaseydecr8ase in debtors Increasel(decrease) in creditors (612,319) (156.047) {46,462) (720,446) {3,821) 27.947 407 (261,414) 595,341 (612,309) (129,503) (45.776) 33.978 17.997 30,326 1,832 232,089 (3,553) Net cash ouffiow from operating activities (1,176,814) (474.919) Page 46 THE su￿ON TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 16. OPERATING LEASES At 31 August 2024, the Charitable Company was committed to make th8 following future payments under a non - cancellable operating lease: Land and Land and Buildings Buildings 31 August 31 August 2024 2023 Within 1 year Betr￿een Iwo and five years 140,069 151,741 122,796 255,825 The above op8rating lease for the premises occupied by the Charitable Company expires on 28 September 2026. 17. ULTIMATE CONTROLLING PARTY The ultimate controlling party aro the Trustees. Page 47 THE SUTTON TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 18. STATEMENT OF FUNDS Funds brought ft>rward Total Income Total expenditure (including gainsl(losses) Funds carried forward Transfers Unrestricled funds General funds Designated funds 4,988,768 2.150,608 2,339.882 51.187 {2,044.454) 135,321 5,284,196 2,337,116 7,139.376 2.391.069 (1,909.133) 7.621,312 Restricted funds Alumni Engagemenl Programme Access Apprenti￿shipS 10.849 (10.370) 479 9,492 119,010 (119,152) 9,350 Pathways to Banking & Finance Pathways to Engineering Pathways to Law Pathways to Medicine Pathways to Veterinary Sciences Pathways to Banking & Finance (Onllne) Pathways to Consulling (Online) Pathways to Law (Online) Pathways General Opportunity Bursary Sutlon Trust Skills Bursary Sutton Trust Careers Plus Sutton Trust Online Employability & Post 18 General Fund UK Summer Schools US Programme Innovation Projects Tech Taskforce ApprentI￿ShIp Research COSMO: Cohort study Data Analysis & Insights Early Years Early Years Campaign Employability Research Researth and Policy 132,077 147.630 (291,093) 51,386 40,000 69,728 39,289 25,154 200,000 271,846 150,598 5,946 (218,399) (605,106) (194,616) {5,946) 51,329 143,213 22,957 437,184 41,821 30,000 (42,776) 12,776 33,934 60,000 (66,476) 27,358 19,184 557,338 272,247 114,963 (42.648) 23,464 (557,344) 20,569 219,991 167,257 57.000 889,234 20,563 281,237 136,365 7,682 44,981 87,581 (211,001) (145,855) (92,477) (979.816) 43.159 135,563 140,027 (52.446) 754,695 509,222 173.438 1,143.184 922.949 3.156 20.000 6.250 (1,271.116) (953.513) (176.594) (1,547) 626,763 478.658 18,453 6,250 2,705 6,623 15.505 1,852 (12.800) (78,916) (48,764) 83,687 1,000 47.764 (47.764) 85.925 111.855 38,161 56.425 (55,430) (542,439) 542,439 3.201,488 5,072.595 (6,166,850) 2.107,233 Total funds 10,340.864 7A63,664 (8,075,983) 9.728,545 Page 48 THE SUTTON TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 18. STATEMENT OF FUNDS (continued) Unreslrfcted General Funds The unrestricted gen8ral fund represents the general reserves of the Trust which are not designated for parlicular purposes. Unroslricted Dosignated Funds This represents the Investment fund that has been set up to ensure the long-term sustainabllity of the Trust. Restrlcled Funds Alumnl Engagement Programme A professional alumni network brlnging together and engaging with the beneficiaries of Sutton Trust programmes. Access Apprentlceships (prevlousty Apprenti¢eshlp Summer School) A new employability programme to widen access to apprenticeships. Pathways to Banklng & Flnance A programme to wlden a(xess to university and banking related careers. Pathways to Banklng & Flnance (Onllne) An online programme to widen access to universlty and banking related careers. Pathways to Consultlng (Online) An online programme to widen access to university and consulting careers. Pathways to Engineortng A programme to widen access to the engineering sector. Pathways to Law A programme to widen access to university and legal careers. Pathways to Law (Onllne) An online programme to widen access to univarsity and legal careers. Pathways to Medicine A programme to widen access to medical schools. Pathways to Veterinary S¢len¢es A (trial) programme to widén access to the veterinary profession. Page 49 THE su￿ON TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 18. STATEMENT OF FUNDS {continued) R•strfcted funds (continued) Pathways General Funding received from a number of partners to support the Trust's ac￿SS to the workplace programmes. Opportunlty Bursary Bursary fund to support Sutton Trust alumni with their career developmenl. Sutton Careern Skllls Bursary/Sutton Trust Careers Laun¢hp8d Bursary programrne for Sutton Trust alumni taking part in Sutton Trust career programmes. Sutton Trust Careers Plus (Law) An undergraduate programme to support non-prlvileged students during thelr degree. Sutton Trust Onllne A digital programme to expand the reach of traditional Sutton Trust programmes. Employability & Post 18 General Fund Funding received from a number of partners to support the Trusvs ￿rfder employability programmes. UK Summer Schools The Trusys flagship programme supporting students to access the UKS leading universities. US Progrdmme A programme to support UK state school students to study at leadlng US universitl8s. Innovatlon Pmjects Designed to invest in new activities that tsckle specific challenges within the social mobility landscape. Tech Taslrforce A pilot project to improv6 sooial mobility within the tech sector. Research and Pollcy A fund supporting the Trust's research into social mobility, and also supporting the Trust's work with policy-makers. Apprenticeshlp Research A fund focusslng on the Trusvs Apprentlceship Research. Page 50 THE SUThON TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 STATEMENT OF FUNDS (contlnued) Restricted funds (continue'd) COSMO.. Cohort Study A major new national longitudinal cohort study which will examine the short, medium and long term impacts of the COVID-19 pandemic on educalional inequality and social mobility. Dats Analysis & Insights A fund focussing on building capacity within the Trust's data and impact function. Early Years A project to explore communication and early language. Early Years Campaign A fvnd focusslng on the Trusvs early years research. Employability Research A fund focussing on the Trust's employabilty research. Page 51 THE su￿ON TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THEYEAR ENDED 31 AUGUST 2024 19. ANALYSIS OF NET ASSETS BETWEEN FUNDS Unrestricted funds Restrlcted funds Total General 31 August 2024 Designated 31 August 2024 31 August 2024 31 August 2024 Tangible fixed assets Investments Dabtors Cash at bank and in hand Current liabilities Non - current liabilities 51.315 51,315 5,434,576 7,771.692 472,350 910,328 3,579,743 8,612,746 (2,311,046) (2,544,031) (5,068,390) (5,073,505) 2,337,116 437.978 5,033.003 (232.985) (5,115) Totsl net assets 5,284,196 2,337,116 2,107,233 9,728,545 Unrestrictsd funds Restricted funds Total General 31 August 2023 Designated 31 August 2023 31 August 2023 31 August 2023 Tangible fixed assets Investments Debtors Cash al bank and in hand Current liabilities Non current liabilities 66.720 66,720 4.951.471 7,102,079 328.867 648,914 4,633,240 9,545,346 (2.151,223) (2.451.489) (4,560.867) (4,570,706) 2,150.608 320,047 4,912,106 (300,266) (9,839) Total net assets 4,988,768 2,150,608 3,201,488 10,340,864 20. LEGAL STATUS The Sutton Tnjst is a Charitsble Company limlted by guarantee with no share capital. In the event of the Charitable Company being wound up, each of the Members (while he or she remains a Member orwithin one year aft6r he or she ceasos to be a Member) have agreed to pay up to £1 each towards.. Payment of those debts and liabillties of the Charitable Company incurred before he or she ceased to be a Member., Payment of the costs, charges and expenses of winding up, and The adjustment of rights of contributors among themselves. Page 52 THE su￿ON TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST2024 21. FINANCIAL INSTRUMENTS The carrying amounts of the Charttable Company's financial instruments are as fdlows: 31 August 2024 31 August 2023 Finanual assats Measured at fair value through profit and Soss Measured at amortised cost: Other debtors (Note 10) Accrued income 16,384,438 16,647,425 687 406.787 853 299,136 31 August 2024 31 August 2023 Finanaal liabilities Measured at amortised cost Trade creditors {Note 11) Other creditors and accNals (Note 11) Accrued expenses - grant accruals 417,203 126,987 1,351,749 418,824 128,614 1,135,340 Financial assets measured at fail value relate to cash at bank and in hand of £8.612.746 (2023 £9.545.346) and investments of £7.771,692 (2023 - £7.102,079). Financial assets measured at amortised cost relate to other debtors. Financial liabilities measured at amortised cost include trade credito￿, other creditors and accruals. There were net gains of £724,266 (2023 - net losses £51,975) attributable to the Charitable Company's financial Instruments. Page 53