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2025-06-30-accounts

Trustees Annual Report for the year ended 30th June 2025

There has been no change in the charity’s purpose, objectives or scale in the last twelve months. As in prior years, the Trustees therefore believe there is no need for the charity to have a policy on reserves or any formal induction or training for the current Trustees, given their level of experience. The Trustees believe the charity is not exposed to any major internal risks and therefore no systems or procedures are required to manage such risks. No external fundraising activities were undertaken during the year or are planned in the medium term.

Over the course of the last twelve months the Trustees have focussed on the two key priorities referenced in the last Annual Report-(i) determining whether to participate on an appropriate basis in the first EOF project initially announced in Rwanda in late 2023 and (ii) concluding the three year M&E study on its pilot three centre ECE project with HAC in Bugesera District in Rwanda. In summary, material progress has been made in achieving both these objectives in 2025, particularly in the last three months.

As was highlighted in the last Annual Report, R4SR’s participation in the EOF project in Rwanda a year ago was far from certain. Subsequently, the Trustees continued to engage with a number of potential service providers who were considering bidding for one of the three US$2.3m payment-by-results contracts being offered by EOF, as a programme approved ‘impact investor’. After multiple discussions, R4SR concluded that it would work exclusively with Save The Children in Kigali/London ('Save') in supporting its bid for one of these contracts. This decision was taken on the basis that Save was viewed as a highly credible potential service provider for the project given its prior experience with payment-by-results contracts of similar scale, including having worked previously with EOF in West Africa, its presence in Rwanda and its familiarity with impact measurement generally in ECE. Save was subsequently successful in securing one of the three EOF four year performance contracts, with a bid supported by R4SR as its designated impact investor. This contract will cover approx. 130 community based ECE centres in the Eastern District of Rwanda, one most familiar to Save and including Bugesera District. These community centres currently cater for an estimated 8,000 children.

Since the summer R4SR has completed its due diligence on participating in this project. Specifically this has required negotiating the final terms of a £372,268 (US$500k) four year term loan to be provided by R4SR to Save The Children Fund as part of the latter’s up-front funding commitment to the EOF contract. Visits with Save in Kigali to a sample of typical ECE community centres and meetings with the local Save team to understand how they planned to execute the contract successfully have also been concluded. Time has also been spent working through the detailed contractual underpinnings of the various EOF sub-contracts and conducting a detailed assessment of all the key project risks R4SR will be assuming in entering into a loan of this nature. Funding for the loan will be provided by matched funded loans totalling the same amount to R4SR, whose sole source of repayment will be limited only to the Save loan repayments received by R4SR over the course of the next four years. The credit quality of the borrower and the covenant quality of EOF has also been assessed. The EOF fund has closed with commitments totalling US$13m from The Government of Rwanda and the Lego Foundation. This was publicly announced on 29th October 2025.

At a Trustee meeting held on November 3rd 2025 the Trustees unanimously approved proceeding to execute the required finalized loan documents, with funding subject to the necessary conditions precedent subsequently being met-now expected to occur later in November.

In summary, the EOF project has been endorsed for R4SR’s third education project in Rwanda as it met the latter's target criteria of supporting innovation to enhance the quality of ECE (as opposed to previously being focussed solely on improving ECE access), significantly scaling up R4SR'S loan funding by crowding in/additionality and, as always, being fully aligned with the Government of Rwanda's current ECE policies and priorities. There is also a reasonable prospect of loan repayments to R4SR being recycled into new projects (as opposed to the grant funding model which supported R4SR’s two earlier education projects).

R4SR will have the potential to be positively impacting pre-primary and primary education for up to 10,000 children in the Eastern District of rural Rwanda between 2026-2030.

This impact also needs to be viewed in the context of the significant cuts to international development expenditure which were announced in early 2025 both by the US, UK and elsewhere. The Trustees consequently determined to lean-in to these headwinds and their negative consequences for some of the world’s most disadvantaged communities.

Finally, it is also important to conclude that the R4SR/HAC M&E report has recently been finalised for both external publication and for circulating to key stakeholders in Rwanda. The next twelve months will determine the extent to which this report may help to attract additional funding into the ECE sector in Rwanda. This, and monitoring Save’s performance under the first year of the EOF contract, will be the main priorities for R4SR in 2026, alongside assessing potential options for identifying a fourth ECE project in Rwanda in due course.

Chris Coles

Chairman

3rd November 2025.

1202396
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CC16a
~~_~~
Section A Receipts and payments
Unrestricted
funds
Restricted
funds
Restricted Endowment
funds
Total funds Last year
to the nearest
£
to the nearest to the nearest £ to the nearest £ to the nearest £ to the nearest £ to the nearest £
A1 Receipts
Donations 47,925 - - - 47,925 48,600
Interest 4 - - - 4 4
- - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
Sub total(Gross income for
AR)
(Gross income for
AR)
47,929
- - - 47,929 48,604
A2 Asset and investment sales,
(see table).
Credited in error by CAF
545
-
-
545
-
-
-
-
-
Sub total 545
-
-
545
-
Total receipts
48,474
-
-
48,474
48,604
~~——————~~
A3 Payments
Grants 49,540 - - - 49,540 47,034
Bankpayment charges 100 - - - 100 175
CAF monthlyfees 60 - - - 60 55
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
**Sub total ** 49,700 - - - 49,700 47,264
A4 Asset and investment
purchases, (see table)
-
-
-
-
-
-
-
-
Sub total -
-
-
-
-
Total payments
49,700
-
-
49,700
47,264
Net of receipts/(payments)
- 1,226
-
- - 1,226
1,340
A5 Transfers between funds
-
- -
-
-
A6 Cash funds last year end
1,340
- -
1,340
-
Cash funds this year end
114
-
- 114
1,340
~~———=—~~
~~SSS55=~~

CCXX R1 accounts (SS)

03/11/2025

1

Section B Statement of assets and liabilities at the end of the period

Categories
Signed by one or two trustees on
behalf of all the trustees
B1 Cash funds
B2 Other monetary assets
B4 Assets retained for the
charity’s own use
B5 Liabilities
B3 Investment assets
Signature
Refund due to CAF
Details
Details
Bank
Details
Details
Total cash funds
(agree balances with receipts and payments
account(s))
Details
Unrestricted
funds
Restricted
funds
to nearest £
to nearest £
114
-
-
-
-
-
114
-
OK
OK
Unrestricted
funds
Restricted
funds
to nearest £
to nearest £
-
-
-
-
-
-
-
-
-
-
-
-
Fund to which
asset belongs
Cost (optional)
-
-
-
-
-
Fund to which
asset belongs
Cost (optional)
-
-
-
-
-
-
-
-
-
Fund to which
liability relates
Amount due
(optional)
Bank
545
-
-
-
-
Print Name
John Kelting
Endowment
funds
to nearest £
-
-
-
-
OK
Endowment
funds
to nearest £
-
-
-
-
-
-
Current value
(optional)
-
-
-
-
-
Current value
(optional)
-
-
-
-
-
-
-
-
-
When due
(optional)
Date of
approval
John Kelting

CCXX R2 accounts (SS)

03/11/2025

2