Charlty Re8lStratlon No. 1167682 ARMED FORCE5 EDUCATION TRUST REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR ThE YEAR ENOED ai AUGusf 2025 BUSINESS ADVISORS ACCOUNTANTS Waverley House 115-119 Holdenhurst Road Bournemouth Dorset BH8 8DY
ARMED FORCES EDUCATION TRusr CONTE5 Pale Legal and administrative informatlon Trustees, report 2-10 Statement of Trustees, responsibilities li Independent auditor's report 12-15 Statement ol financial activities 16 Statement ol financial position 17 Statement of cash flows 18 Notes to the financial statements 19-28
ARMED FORCES EDUCATION TRusr COMPANY INFORMATION Trustees Mrs Porter Mr l Buckle Dr L G B Robinson Mr A Malcolffl Mrs C Chisholm Mrs J Walker Mr R Clements Mr M Davis Mr B Burton Charlty number 1167682 Audltof TC Group Waverley House 115-119 Holdenhufst Road Bournemouth Dorset BH8 80Y
ARMED FORCES EDUCATION TRusr TRUSTEES. REPORT FOR THE YEAR ENDED31 AUGUST2025 The Trustees present their annual report and thnancial statements for the year ended 31 Au8USt 2025. The Trustees are delighted to present this annual report, reflecting a year ol growth, innovation, and impact for the Armed Forces Education Trust. Our mission remains clear.. lo support youn8 people under 25 who are dependents of servin8 or former members of HM Armed Forces overcome any disadvantages to their education due to their parent's service. This year, we have broadened our reach, deepened our 5UPPOrt, and strengthened our partnerships, ensuring that our beneficiaries get the opportunities they deserve. The financial statements have been prepared in accordance with the accounting policies set out in the notes to the linancial statements. the Charities Act 2011 and -Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financol Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021" las amended for accounting periods commencing from I january 20161. Objectives and activities Oblectlves and alms The purpose ol the Trust, as set out in its 8overnin8 document, is the advancement of educatr'on of people under the a8e of 25 years who are or were dependents of servin8 or former members of HM Armed Forces. Our Purpose and Impact V151on A future where every child from an Armed Forces family achieves their full educatr'onal potential, re8ardle55 of mobility or circumstance. Mlsslon The Trust's mission 15 to award 8rant5 that improve educational experiences and outcgmes of Servi hildren whose education has been disrupted or disadvantaged because of the unique demands of Armed Forces life through targeted financial grant5. partnership5 and alrnonisation. supporting transitions, inclusion and wellbeing. How We Make a Dlhrencè We idendfy individuals and InstituonS in need and provide h"nancial support to overcome barriers to educatitsn. Our grants range from modest awards for books to substankn.al funding for organisatr'ons supportin8 Service children. Last year. we awarded £575.CiKJ Iwhich represents the most substantial amovnt yet awarded by the Trust in one yearl in support of Service children. We also sponsored prizes for the Month of the Military Child, and continued our ongoin8 SUPPOrt to Neston Primary School for new arrivals from the Serviies Cotswold Centre.
ARMED FORCES EDUCATION TRusr TRUSTEES. REPORT (co1NuEDl FOR THE YEAR ENDED31 AUGUST2025 Objectives for the Year The Trust regularly reviews its strategic intent and ensures that its principal objectives for the year reflect the operation of the Trust as a grant giving body. These objectives are.. al Encourage and support application5 from currently serving personnel and veteran5 whose children or dependent5 have experienced educational disadvantage caused by Service life including mobility, separation, deployrnent. and challenge5 aCte5sing additional edutational needs provision. bl Support Service children with Additional Edutation31 Needs by providing short-term, targeted InterVenOn% where mobillty. delayed assessments. or disrupted provision have put their education at risk. cl Strengthen the continuity ol education. particularly during key transition points, to minimise the disruption associated with postings and deployments. dl Support schools, colleges, and other or8anisab.ons to provide additional resources and support that address the needs ol Service children le.g., mobility, separation, lan8ua8e and communication needs, emotional wellbeing, transition support). The number of applicants, the breadth of their 8eo8raphical location and the diversity of service personnel applyin8 are all key indicators of the Trust's success in meeting Its objectives. Publ1¢ benefit The Trustees have carefully considered Charity Commission 8uidonce on public benelit. Our activities 8rant-makin8 to individuals and insb'tution5 are desi8ned to maximise positive outcomes lor Service hildren, ensyrin8 our resources reach those m05t in need.
ARMED FORCES EDUCATION TRusr TRUSTEES. REPORT (co1NuEDl FOR THE YEAR ENDED31 AUGUST2025 Grant makin8 There are many areas where service children need support that cannot be provided by the local autPority either through a lack of funds or a failure to understand the nature of the mobile military society. In these cases, the Trust can step into the breech and provide this help to service children. Grant5 can be awarded for children who have experienced disruptions or difficulties in their education due to Additional Educational Needs, parenlal deployments. mobility. injury or death. The Trust 3150 give grant5 directly to schools to support larger numbers of seTvice children to help them overcome these issues and achieve their potential. Thus. the Trust Is commltted to maximising the impaci of its gfant lunding by.. • Providing support to children and young adults whose education may have been disrupted LY placed at risk as a result of a parent's current or previous military service. • Assisting educational institutions in their efforts to mitigate the effects of service life on pupils. Wherever possible, the Trust ensures that grants awarded do not substitute fundin8 that is alreadv available from public or private sources. Achlevements and performance Charltable artlvltles Despite bein8 a small charity with only one part-time employee ihe Trust is able to have a measurable impact by proactively seeking applicatr'ons from Force5 farnilies m05t in need of 5UPPOrt. It offers funding and advice lor education support where ihis is beyond their linancial mean5. It does thi5 by actively takin8 part in social media group discussions for servicè personnel and veierans. as well as networking widÈly with Families Federations, Service Welfare or8anisations and schools. The Trust's flexibility and adaptability demonstrates a commitment to meet continually the needs of the Armed Forces community in real fjme. Unlike many charilles. the Trusi iecognises thai need lor funding does not Come at disnCt points during the year and il will respond to applicats.ons at ihe n.me of need.
ARMED FORCES EDUCATION TRusr TRUSTEES. REPORT (co1NuEDl FOR THE YEAR ENDED31 AUGUST2025 Key Achievements Wlder Reach - Our networking and marketing efforts have resulted in a significant increase in grant applications from across the UK, with a diverse range ol recipients. Supporting Schools - We provided 8rants to IS school directly, enabling tsrgeted interventr'ons as well as training lor staff working with Armed Forces children. Grants to or8anisation5 - The Trust has continued with their grant to ihe SSCE Cymru Team so that they can continue to provide support to 311 schools in Wales who have Service children. The Trust has also supported the Forces Employment Charity with it5 Young Person's Programme. Funding z Festival of Friends We funded a very successful Festival of Friend5 in Portsmouth and Gosport that reached 24 schools and 950 Service children. mainly Royal Navy and Royal Marines. 5uppordnK Addltlonal NèÈd- We continued to expand our support to Service children with addition31 needs by helping individual children who needed short ierm additional support and also through enabling schools to support children through theii Nurture Hubs. Collaboratlve Pfoleets Our partnership with the Service Children's Progresslon Alllance ISCIPI Continues. with a grant for partial funding engagement of schools with the Thriving Lives Toolkit. vknich has reached around 20,000 Service children. Advocacy and Awareness - The CEO engaged with County Councils, Families Federations, and attended the Royal British Legion SEND roundtables and the Cobseo Children's Cluster, ensuring our work is informed by the latest needs and best practice. Sl8np05tln8 - The Trust actively helps families lind alternative support If they are unable to help and works hard to for8e relationships with other charitr'es, such as the Benevolent Trusts, to seek collaborative fundin8. Sector Reco8nlfjon- The Trust was honoured to be shortlisted for the 2025 Celebratin8 Force5 Family Award5 Military Charity ol the Year. Impact Storle5'. Chan8ln8 Llves Klwl Prlmary School12024-20251 A grant from the Trust enabled Kiwi Primary School to launch a weekly outdoor learning programme for Service children, replacin8 the previous single annual session. The new Kiwi OutdTr)r Learnin8 Award IKOLAI gave every pupil in Years 1-6 a dedicated 45-minute session each week. Activities such as den building, gardening, and animal care helped children develop resilience, adaptability, and teamwork. Those stru881ing with behaviour or emotional regulation benelited from small 8roup interventions and The Nest a safe space lor emotional support and restorative conversations. Outdoor calmin8 spaces proved especially effective lor pupi15 dealing with deployment-related stress. The re5uIt'. reduced classroom disruption, increased en8a8ement, and improved wellbeing. The projecl is now embedded in School culture and expanding to younger and additrgnal needs pupils. Portsmouth & Gosport Festtval of Frlend$12024-2025} The Trust's grant to the University ol Portsmouth's Festival of Friends project enabled 24 schools acr05S Portsmouth and Gosport to strengthen their provision for Service children. Through a combination of cornmi55ioned project Management, staff trainin8. interactive theatre workshops, and a Pupil Voice cferenCe, the project directly benelited over 956 Service children, including those from Arrny and Royal Navy families. Activitie5 such as the Pupil Voice conference and celebration event f05tered collaboration. raised aspirations, and gave Service children a platform to share their experiences and shape School 5UPPOrt. Feedback from pupils and staff wa5 overwhelmingly positive. with case 5tudie5 evidencing irnpioved pèstoral care arKI Sustainable Changes in schools. The project'5 legacy is further secured through upskilling staff, sharing best practice nationally. and embeddinB the Thrivine Lives Toolkit. ensuiing continued support for Service ehildren in the region.
ARMED FORCES EDUCATION TRusr TRUSTEES. REPORT (co1NuEDl FOR THE YEAR ENDED31 AUGUST2025 Carnagill Primary School, Catterick12024-20251 Carna8ill Primary School in Catterick received a grant from the Trust to enhance pastoral support for Service children, focusing on transitions and emots'onal wellbein8. The funding enabled the school to strengthen the role of a Service Pupil Advocate, improve family communication, and expand access to Learning Mentor-led wellbeing groups. Tailored transits'on resources, including videos and social stories, supported incoming pupils parbcularly those with Additional Educational Needs while a new Seesaw group facilitated ongoing family engagement. Group 5es5ions on confidence. emotional regulation. and mental health benefited 60 pupils, and staff training in nurture approaches ensured sustained emotional support. Impact measures showed improved resilience and Social ski115, Wlth practices now embedded to maintain a supportive. inclusive environment for military children. Force5 Ernployment Charlty12024-20251 The Trust's 8rant to the Force5 Employment Charity has supported its Young People Pro8ramme, which aims to improve educational and career outcomes for Service children a8ed 16-24. The fundin8 enabled tailored l..1 career 8uidance, Creative Forces Day5. and employability workshops, reachin8 89 young people with personalised support and engaging 111 student5 in skill-buildin8 5e5510ns. The programme has strengthened outreach to live secondary schools serving 872 Service children. with targeted efforts to support Noèlese families. Outcome tools showed 86% of participants improved job skills and l(th6 rèported increased stability. Indlvldual Successes Quotes from feedback 'The grant from the Trust gave me continuity in my education durin8 a time of significant change for me and my family. This gave my sister and me stability throu8h our GCSE courses and examinations and allowed us to achieve the best 8rade5 possible". J05huo, Lurton khool The Trust's assistance this year with the school fees allowed me to continue workin8 as a fulkts'me soldier, while allowing rny children stability in their education and to be all at the same school. Serqeantjumes 81¢7ck The funding provided through the support Brant from the Armed Forces Education Trust has had a profound impact on Olly, a pupil with Auts'sm Spectrum Disorder and severe speech delay. Movin8 from Scotland to En8land, Olly did not have an Education, Health and Care Plan. The 8rant enabled Olly to spend time in mainstream schoolin8 while fundin8 was sought to 8ive him the support he needed lon8 term. Mrs Phllllps* Heodteacher Tom arrived from a special school in another county mid year. He was out of school for some time while suitable provision was found. When he eventually was placed in our mainstream school we struggled to find the funding to support him. The Trust's 8rant, that has enabled Tom to attend school lull tr'me while we waited for fundin8, ha5 made an incredible difference and has helped Tom to build communication and Social ski115. He is a very different young man cofflpared to when he joined usl Mr Mayi SENCO Finantial rÈviÈw Over¥lew Income- Our principal Source ol funds remains rental income from our property asset, let to Co8nita khools Limited. In addition, the Trust received a grant from Greenwich Hospitsl to support schools with Royal Navy and Royal Marine5 children. We also receive donation5, including an annual gift from the Privy Purse. ExpenditurÈ: Charitable activities expenditure has continued to rise this year, reflecting our commitment to supporting more beneficiaries and institutions.
ARMED FORCES EDUCATION TRusr TRUSTEES. REPORT (co1NuEDl FOR THE YEAR ENDED31 AUGUST2025 ResÈrvÈs Policy- We maintain reserves equivalent to three years, grant expenditure, safeguarding our ability to supp)rt benefrciaries in the event of income disruption. Investments.. Surplus funds are invested in a multi-asset fund. which delivered a satisfactory return in 2024-25. The Board regularly reviews performance against benchmarks. ReseThies Pollvi The Trustees review the Trust's polity on reserves at least annually with refeiente to guidance published by the Charity Commission. The policy is also reviewed. when warranted. by changes in risk assessment or the business plan. During the year. reserves were held to minimise any disadvantage to beneh"ciaries should the Trust's income be stopped or severely reduced. Taking account ol the main risks to the Trust. the Trust's policy Is to hold reserves ol around three times the level of total annual grants awarded based on forward estimates. As 0131 August 2025, total unrestricted reserves amounted to £14,645,48312024.' £14,521,951), of which £2,999,48312024'. £2,536,9511 were free reserves as the Trust's investment property cannot be quick disposed of. Flnanclal Actlvltles and Resu115 The results for the year and ihe financial posltton are set out in the Statement of Financial Acdwtles on page 16 and the Statement of Financial Positton on page 16. The Trusi's principal sourte of funds was income from rent receivable on Its principal property assei. The property asset is lei on a SO year lease to September 2061 to Cognita Schools Limited. a company which operates and invests in schools. The Trustees regularly meet wlth personnel from Cognita to ensure that the terms of the lease are being met. The Trust is not involved in direct fundraising although periodically donations and legacies are made to the Trust. In particular, the Trust receives an annual donation of £300 from the Privy Purse. Expenditure on charitable activities was £676,66412024.. £965,252). Grants are accrued as at the date they are approved by the Trustees. Grants payable can be seen on pa8e 22 and 23. Investrnent po15cy and objeths The Trust has a long-term investment policy and a Set ol objective5 lor its surplus lunds, both of which are regularly reviewed by the Board. The Trust's investment policy is to seek the best financial return from investing surplus fund5 balanced with an acceptable level of risk. Having considered the option5 available and reviewed a number of potential investment managers and funds. the Trustees deiermined that its surplu5 funds should be invested with a third party multi-asset fund l-the Fund"). The Fund seeks to maximise returns through income and capital growth. The Trust's investment in the Fund was valued £3.2m as at 31 August 2025. During the financial year the Fund made a 8% gain. compared with a 13.8% gain in the previous year. The Board regularly reviews the performance of the Fund in absolute terms and against a number of benchmarks. It considers that the overall performance of the Trust's investment has been satisfactory.
ARMED FORCES EDUCATION TRusr TRUSTEES. REPORT (co1NuEDl FOR THE YEAR ENDED31 AUGUST2025 Future plans We will continue to serve Service children worldwide, adaptin8 to increasin8 challenges of svpport for additional needs in particular. Our focu5 remains on broadening awarene55, deepening impact, and ensuring our 8rants make a real difference. Risk Management Principal risk5 include1055 of rental income and depletion of investment reserves. The 8oard monitors these risks closely. maintaining strong relationship5 Wlth tenants and investment managers. and reviews policies annually. Structure. Govemance and management Govèrnln8 documènt The Armed Forces Educatton Trust was established to take forward the work of the Royal School Hampstead Trust (charity number 3122861. On 7 December 2016 ihe Royal School Hampstead Trust transferred all of its assets lincluding cash and freehold property less liabilities) amounting to £13,070,677, to the Forces Children Educatr'on Tiust Isince renamed Armed Forces Education Trust). The Trust is a Charitable Incorporated Or8anisahon and 8overned by its written constitution dated 16 June 2016. The affairs of the Trust are managed by the Trustees, of which there must be a minimum ol five. There is no maximum number of Trustees that may be appointed by the Trust. The Trust recognises the Charity Governance Code as an importsnt benchmark for best practice and applies its principles proportionately to our size and resources. We reco8nise the need to seek diversity of skills and experience on the board, introduce regular performance reviews, and commit to on80in8 trainin8 lor trustees. These steps reflect our commitment to continuous improvement and to ensuring that our 8overnance arrangements remain robust. accountable. and ali8ned with sector standards. The Trust IS 8overned by its constitution (dated 3 June 20161 and managed by a dedicated Board of Trustees, supported by the CEO and specialist advisers. Trustees are recruited throu8h a transparent process, with induction and trainin8 provided. Oay-to-day operations are delegated to the CEO, with regular 8oard meetings ensuring oversi8ht and strategic direction. Safeguarding is a priority. with policies reviewed regularly and included on every Board agenda.
ARMED FORCES EDUCATION TRusr TRUSTEES. REPORT (co1NuEDl FOR THE YEAR ENDED31 AUGUST2025 The Trustees who served durin8 the year and up to the date of signature of the linancial statements were.. Mr S Porter Mr A Behagg Mrs M Clohessy Mr18uckle Dr L G B Robinson Mr A Malcolm Mr5 C Chisholm Mrs J Walker Mr R Clements Mr M Davis Mr 8 Burton (Resigned 31 December 20241 (Resigned 31 January 20251 RecruStment and appolntrnent of new trustees The appointment of Trustees is a matter reserved lor the Board of Trustees. based on vacancies occurrlng through the end ol an allotted term. or a resignation. and an agreed succession plan based on a set of crlteria. The Board may appoint a new Trustee at any properly convened meeting of the Trustees. The Chair is elected from and by the Trustees. New Trustees are given a documented and personal induction programme. Trustees are able to attend a range of training courses and seminars, either at external institutions, or internally organised with external contributors as required. Organlsatlonal struduré The Board meets four ttmes a year. with addlOnal meetbngs arranged if requirèd. Day to day management ol the Tfusi's affairs is delegated to the Trust's Chief Execufjve Offi'cer. Charmain Hickman. In additton. the Trust benefi.tted from ihe services ol Derry Caleb. its estates adviser to facilitate oversight of Its principal property investment. Mr Caleb stepped down as esiates adviser in June 2025. The Trustees consider that they. together with the Chief Executive Officer, comprise the key management of the Trust in charge of directing, controlling, running and operating the Trust on a daY-tdaY basis. None ol the Trustees receives any remuneration in respect of their services as Trustees. Staff pay is reviewed by the Trustees annually usin8 external benchmarkin8 and comparison dats.
ARMED FORCES EDUCATION TRUST TRUSTEES. REPORT Ic0fr1NUEDl FOR THE YEAR ENDED 31 AUGUST2025 Rlsk management The Trustees review and update the Schedule of risks facing the Trust at least annually but mtsniior principal risks at every 803rd meeting. The Board con5ider% 3 schedule of risks. theif likelihotsd and ptstential damage together with preventative measures and mitigating actions. The Board considets that the principal risks facing the Trust are as follows.. a. The loss of regular rental income from the principal asset- b. The depletion of investment reserves through for example adverse inve5trnent condition5. The key strategies to manage these risks involve developing a closer relationship with the leasehtslder of the Trust's principal asset and the regular monitoring of investment policy and performance. Safetuardlng The Trust has a safe8uardin8 policy which 15 re8ularly reviewed. Amon8 Other things, It covers mea5ure5 to protect the Trustee5 and the Chief Executive Officer who is at the forefronl of requests for grant5. In addition, safe8uardin8 is on the agenda ol each Board meetin8. The safe8uardin8 lead is the CEO and a trustee, Dr L G B Robinson, is now the Trustee for Safe8uardin8. Both have undertaken the necessary training from SAFE CIC. Events slnte thè end of thè yèar Information relatin8 to events since the end of the year is given in the notes to the financial statements. The Trustees report was approved by the Board of Trustees. Mr S Porter Ti'ustee Mrs C Ch15holm Trustee Dated.. .p.1..nl.7.Q.2.. 10-
ARMED FORCES EDUCATION TRusr ATEMENT OF TRUSTEES, RESPONSIBILMES FOR THE YEAR ENDED31 AUGUST2025 The Trustees are responsible for preparing the Trustees, Report and the financial ststements in accordance with applicable law and United Kingdom Accounting Standards ILlnited Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England and Wale5 requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affair5 of the Trust and of the incoming resource5 and application of resource5 of the Trust for that year. In preparing these flnancial statements. the Trustees are required to-. select suitable accounting policles and then apply them consistently. observe the methods and principles in the Charities SORP. make judgements and estimates that are reasonable and prudent; state whether applicable accounting standards have been followed, subject to any material departtjres disclosed and explained in the financial statements,. and prepare the linancial statements on the 8oinB concern basi5 unless It 15 inappropriate to presume that the charity will continue in operation. The Trustees are responsible for keeping suflicient a¢¢ountin8 records that dis¢lose with reasonable a¢¢ura¢y at any time the finantial position of the Trust and Ènable them to ensure that the linantial statemènts comply with the Charities Act 2011, the Charity (Atcounts and Rèports) Règulations 2008 and the provisions ol the trust dèed. They are also responsible for saleguaiding ihe assets ol the Trust and hence for taking reasonable #eps for the PreVenOn and detettlon of fraud and other irregularitles. 11
ARMED FORCES EDUCATION TRusr INDEPENDENT AUDITOR'S REPORT TO THE TRU5fEE5 OF ARMED FORCE5 EDUCATION TRU Oplnlon We have audited the financial statements of Armed Forces Education Trust (the 'Trust'l for the ye¥ ended 31 August 202S which ctsmprise statement of financial artivities. the 5t3tement of financial position, the statement of cash flows the statement of financial activifftes. the statement of fi.nancial position. the statement tsf cash flows and notes to the h"nancial statements. including significant accounting policies. The fi.nancial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards. including Financial Reporting Standard 102 The Finonciol Reporting Stondord opplicoble in the UK ond Republic of irelond Iunited Kingdom Generally Accepted Accountin8 Practice). In our opinion, the financial statements.. give a true and fair view of the slate of the tharity's affairs as at 31 August 2025 and of its incoming resources and application of resources. for the year then ended: have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practi., and have been prepared in accordance with the requirements of the Charities Act 2011. Basls for oplnlon We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the oudit of rhe finonciol stotements sectlon of our report. We are independent of the charity in atcordarte with the ethical requirements that are relevant to our audit ol ihe hnancial statements in the UK. includin8 the FRC'S Ethical Standard. and we have fulhlled our other ethical responsibilities in accoidance with these requirements. We belleve that the audit evldence we have obtained Is sufficient and appropriate to provlde a bass for our oplnlon. Concluslons relatln8 to 8oln8 concern In auditing the hnantial statements. we have concluded that the trustees. use of the going concem basis of accounting in the preparation of the ffinancial ststements is appropriate. Based on the work we have performed. we have not identified any material uncertainfjes relafjng to events or conditions that, individually or collectively, may cast signifi.cant doubt on the charity's ability to continue as a 80in8 concern for a period of at least twelve months from when the fi.nancial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to goin8 concern are described in the relevant sections of this report the Tru5tee5' use of the going concern basi5 of accounting in the preparation of the finantial statements IS not appropriate. or the Trustees have not disclosed in the linancial statements any identified material uncertainties that may cast significant doubt about the Trust's ability to continue to adopt the Boing concern basis of accounting for a period of at least twelve monih5 from the date when ihe financial statements are authorised for issue. 12-
ARMED FORCES EDUCATION TRusr INDEPENDENT AUDITOR'S REPORT {COTrrnNUED} TO THE TRU5fEE5 OF ARMED FORCE5 EDUCATION TRU Other Informatlon The trustees are responsible for the other information. The other information comprises the information included in the annual report other than the h"nanci31 statements and our auditOf'5 report thereon. Our tspinv)n on the financial statements does not cover the other informarion and. excepi to the extent otherwise explicitly stated in our report. we do not express any form of assurance conclusion theieon. In connection with our audit of the financial statements. our responsibility is to read the other informatt.on and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit. or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the linancial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothin8 to report in this re8ard. Matter5 On whlch we are requlred to report by exceptlon In the light of the knowledge and understandin8 ol the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustee report. We have nothin8 to report in respect of the lollowin8 rnatters where the Charities (Accounts and Reports) Re8ulation5 2008 requires us io report to you il. in our opinion: the information 8iven in the financial statements is inconsistent in any material respect with the Trustee5' report., or suflicient accountlng records have not been kepi: or the hnancial statements are not in agreement with the accounting records; or we have not received all the inlormation and explanaiions we require for our audlt. Responslbllittes of Trustees As explained more fully in the trustees. responsibilities statement. the Irustee5 are responsible for the preparation ol the linancial statements and for being satisfied that they give a true and fair view, and lor such internal contrtsl as the trustees determine is necessary to enable the preparation of tinancial staternents that are free from material misstatement. whether due to fraud or error. In preparing the h"nancial statements. the tiustees are responsible for assessing the Charity's ability to continue as a 80in8 concern, disclosin8. as applicable. matters lated to going concern and usin8 the going Coern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations. or have no realistic alternative but to do so. 13-
ARMED FORCES EDUCATION TRusr INDEPENDENT AUDITOR'S REPORT {COTrrnNUED} TO THE TRU5fEE5 OF ARMED FORCE5 EDUCATION TRU Audltor's responslbllltles for the audlt of the financlal statements We have been appointed as auditof undei section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regul3titsns made or having effect thereundeT. Our objectives are to obtain reasonable assurance about whether the h"nancial statements as a whole are free from material misstatement. whether due to fiaud oi error. and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the a88re8ate, they could re&onably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, includin8 fraud, afe instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, includin8 fraud, is detailed below. A further description of our re5ponsibilitres for the audit of the thnancial staternents Is located on the Financial Reportin8 Council's webslte at.. http'./lwww.frc.or8.uklauditorsre5ponsibilities. This description form5 part of our auditor's report. Extènt to whlth thè audlt was tonsldèrtd tapablè of dètÈtUnB IrrÈ8ularltlÈs. Intludln8 frdud The objectives ol our audit. in respeti to Iraud. are.. io identify and assess the risks ol materia misstatement of the linancial staiemenis due to fraud.. to obtain suffitient appropiiate audit evidente regarding the assessed risks of material misstatement due to Iraud, through designing and implemennng appropriate responses. and to respond appropriately to fraud or suspected fraud idenn.fied during the audit. However. the primaryresponsibility for the prevention and detection of fraud rests wilh both those charged with governance of the entity and its management. Our approach was as follows.. We identifi'ed areas ol laws and regulations that could reasonably be expected to have a matuial effect on the linancial statements from our 8eneral commercial and sector experience, and through discussion with the trustees and those char8ed with 8overnance las required by audits'ng standards), and discussed with the trustees and those char8ed with governance the policies and procedures regarding compliance with laws and re8ulations,' We considered the le8al and regulatory frameworks directly applicable to the financial 5tatement5 reportin8 framework IFRS 102 and the Charities Act 20111 and ihe relevant charity re8ulatr.ons in the UK; We considered the nature ol the industry, the conlrol environmenl and the charity's performce, includin8 the key drivers lor management's remuneration: - We communicated identified law5 and regulations throughout our team and remained alert to anv indications of non-compliance throughout the audit: We ctsn5idered the procedures and controls that the charity has e5t3bli%hed to address risks identilied. or that otherwise prevent. detev and ddect fraud.. and how senior management monitors those piogr3mme5 and controls. These include the review of trustees, expenses. dual authentication foi banking procedures and segregation of duties across key areas of the charity. Based on this understanding we desi8ned our audit procedures to identify non-compliance with such laws and regulations. These include Health and Safety and other charity legislative requirements. Where the risk was considered to be higher, we performed audit pr(Kedures to address each identilied fraud risk. These procedures included.. testing manual journals. reviewing the linancial statement disclosures and testing to supporting documentation; performing analytical procedures," and enquiring ol management, and were designed to wovide reasonable assurance that the linancial statements were free from fraud or error. 14-
ARMED FORCES EDUCATION TRUST INDEPENDENfAUDITOR'S REPORT ICONTINUEDI TO THE TRUSTEES OF ARMED FORCES EDUCATION TRUST Owing to the Inherent Iimit3tlons of an 311dir. Ihpre 15 rin unJvui(Jdble iisk ttidL we may not have detected some rnETrt('riEiI misfitrltpmrnl% in tIIL' liiidriLitsI slaleinents, even though we have properly planned and pprfnrrnpd nijr audit In 3ccordance with auditing standard5. For example, the fvnher rernowpA niiii-i()ITlI)IIAllI.V. Wltli IdWS diid regulations lirregularitie51 is from the events and tran5Hrtinn% il'Eli1('.d iii the fiThancial statements, the less likely thi. inhprently lirnirrd PlULL'durL" IL'4uifL'd by auditing standards wouk4 Identify It. The rlsk Is Iilrn Erpiipr reE3rJii)g Iriebiulai ItS occurring due to frnud rather than error. as fraud iDw>Ivi'.: iritLriliDnal concealment, forgery. collu510n. omission or mi5repiesentaiion We are not rpspnnJilde lor preventing non-compliance and Ccinnnt ho oxpocted to rlpitiil Dnn-l tjiriy1i.1llL willi all laws and regulations. A further description of our responiibilitis is ava113blo on thp Fin.ifiri.Il RLyortiiig iouncil'5 website at.. bup£ wwwfrc.o .uk audltorsres U%p of our report T1115 i¥yvI I15 lildUE >vlely Iv Ilie cl)arity's trustees. as a body. in accordte with Of Pilrt 4 ul the ChJritlQ4 Act 2011. Our audit work h¥$ been undertaken so thllt wv mi8hr I,fiir(I lo tliv LliJii¢y's Vustees those matters WÈ are rofjiilred Tn qrarp Tn Thpm In lin tiudiiut's igyuit diid lul liv vlliei purp05e. To the fullest extent permittftd hy lilw, we do i)ot aLLL'Pt or assume responsibility tc anygne other than the charity ano thr rhii riiy'% 1111s1¥.vs. ds d budy. for our audit work, for this r•port. or for the opinlons wp htivp fnrm*¥l "rc-. Ap, Lucy Fil•r FLA1Sénior statutory Auditor) lor and un bvhAII ol TC Group Statulory Auditor nfticr. Chriitchurth Date.... TC rOUP 15 eli8ible tor appointment if .Iiidiinw lil Ilip TriJ%l by viilu¥ uf IlsdiwL•lity for appointment as auditor of .pL'Ltivii 1212 of the Lompanies Art 2[
ARMED FORCES EDUCATION TRusr ATEMENTOF FINANcIALA1vIES INCLUDING INCOME AND EXPENDITURE ACCOUI FOR THE YEAR ENDED31 AUGUST2025 Unrestricted funds Unrestricted fund5 2025 2024 Notes Income from.. Donations and legaties Charitable activities i.l0 543,734 313 523,531 Total Income 544,734 523,844 Expendlture on: Charitable activities 676,664 965,252 Total expendlture 676,664 965,252 Net galnslllossesl on Investments io 255.462 528,937 Net Income and rnovement In funds 123,532 87,529 Rècontllladon of funds: Fund balances at I September 2024 14,521,951 14,434,422 Fund balances at 31 Au8llSt 2025 14,645,483 14,521,951 The statement of financial activities includes all Eains and losses CogniSed in the year. All income and expenditure derive from continuin8 activihes. 16-
ARMED FORCES EDUCATION TRUST ATEMENT OF FINANCIAL posrnoN ASAT31 AUGU5T2025 2025 2024 Flxed assets Tangible assets Investment propertv Investments 12 13 14 578 11,646,000 3.171.754 1.140 11,985,000 2,937.292 14.818.332 14,923,432 Current assets Cash at bank and in hand 613,536 267,396 Credltors: amounts falllng due wlthln one year Is 1763,1201 1565,5461 Net Cyrnt Ilabllltles 1149,5841 1298,1501 Total assets le55 current Ilabllltles 14,668,748 14,625,282 Credltors: amounts fallln8 due after more than one year 16 123.2651 1103.3311 Net assets 14.645.483 14,521.951 The fund5 of the Trust Unrestricted funds 17 14,645.483 14,521,951 14,645.483 14,521,951 0110412026 The financial statements were approved by the Trustees on ...................... . Mr S Porter Trustee Mrs C Chisholm Trustee 17-
ARMED FORCES EDUCATION TRusr ATEMENT OF CASH FLOWS FOR THE YEAR ENDED31 AUGUST2025 2025 2024 Notés Cash flows from operatlng actSvltles Cash labsorbed byllgenerated from operations 113.8601 4.854 Invesdng atdvltlts Proceeds from disposal of investment propertv 360.LKQ Net cash generated fromllused Inl Inve511ng actlvlfje5 360,CQO Nèt cash usèd In Inantlnt attlvltlès Net Increase In cash and cash equlvalents 346.140 4.854 Cash and cash equivalents at beginning ol year 267.396 262.542 Cash and cash equlval•nts at end ol year 613,536 267,396 18-
ARMED FORCES EDUCATION TRusr NOTES TO THE FINANCIAL STATEMEpirs FOR THE YEAR ENDED 31 AU6UST2025 Accountln8 pollcles Charlty Informatlon Armed Forces Education Trust is a charity reElStered in England and Wales and is 3 Charitable Incorporated Or8anisatton. The address of the principal office is PO Box 684. Farnham. GU9 ILP. 1.1 Attountlng con¥entlon The linancial statements have been prepared in accordance with the Charities Act 2011 and -Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities Preparing their accounts in accordan£e with the Financial ReporDng Standard applicable in the UK and Republic of Iland IFRS 1021~ las amended for accounting periods Commencing from l January 20161. The Trust Is a Ptsbllc Benelit Entity as defined by FRS 102. The linancial statements are prepared in sterlin& which is the functional currency of the Trust. Monetary amounts in these Ilnancial statements are rounded to the nearest £. The flnancial statements have been prepared under the hisiorical cost conventton. modilled to include the revaluation of freehold properries and io include investment properties and certain financial Instruments at falr value. The principal accountinB policies adopted are set out below. 1.2 Golng concern At the time of approvlng the flnanclal statements. the Trustees have a reasonable expectatlon that the Trust has adequate reso¢Jrces to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the goin8 concern basis of accounting in preparing the hnancial statements. 1.3 Charltable fund5 Unrestricted funds are available lor use at the discretlon of the Trustees in furtherante of their charltable oblectives. 1.4 Incomln8 resources In¢ome is recogni5ed when the Trust Is legally entitled to it after any perlormance conditions have been met, the amounts can be measured reliably. and it 15 probable ihat income will be received. Cash donations are retognised on receipt. Other donations are recognised onte the Trust has been mtilied of the donation. unless perlormante conditions require delerr31 of the amount. Legacies are recognised on receipt or otherwise if the Trust has been notified of an impendin8 distribution. the amount is known. and receipt is expected. If the amount is not known. the legaty is treated as a contingent asset. 19-
ARMED FORCES EDUCATION TRusr NOTES TO THE FINANCIAL STATEMEpirs IcoNriNUEDI FOR THE YEAR ENDED31 AUGUST2025 Accounting policies Icontinuedl BaskJlnunclalossets Basic fi.nancial assets. which include debtors and cash and bank balances. are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a h'nancin8 transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Firancial assets classihed as receivable within one year are not amortised. Busicfinoncial liobiliiles Basic financial liabilities, including creditors and bank loan5 are initially recognised at transaction price unless the arrangement con5titute5 a financin8 Iransaclion. where the debt instrument 15 measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently ¢arried ai amortised cost. using ihe effedive interest rate mèthod. Trade creditors are obligatlons to pay lor goods of seThices that have been acquired in the ordinary course of operaOnS from suppliers. Amounts payable are classih.ed as current liabilitr'es if payment is due within one vear or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost usin8 the effective interest method. Derecognltlon oAJlnanclo111¢7bllldes Financial liabilities are dereco8nised when the Trust's contrartual obli8ats.ons expire or are di5char8ed or cancelled. 1.11 Fund attoundng Unrestricted funds can be used in accordance with the charitsble objertives at the discretion of the trustees. 1.12 Taxatlon The charity is exempt from tax on it5 charitable activities. 21
ARMED FORCES EDUCATION TRusr NOTES TO THE FINANCIAL STATEMEpirs IcoNriNUEDI FOR THE YEAR ENDED31 AUGUST2025 Accounting policies Icontinuedl 1.5 Resources expended Liabilities are recognised as expenditure as 500n as there is a legal or constructive obligation committing the charity to that expenditure. it 15 probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruas basis and h35 been cl355ified under heading5 that aggregate all c05t related to the category. Where costs cannot be directly attributed to parknculai headings they have been allocated tg activitie5 Qn a b35i5 consistent with the use of resources. Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not actrued as expenditure. 1.6 Tanglble flxed assets Tangible h'xed assets are initially measured at cost and subsequently measured at ¢ost or valtion, net of depreciaoN and any impairmeni losses. Depreciation is reco8nised so as to write off the cost or valuation of assets less their residual values over their useful lives on the followin8 bases.. Computers 33% on Cost The gain or loss arising on the disposal of an assei is determined as the difference between the sale proceeds and the carrying value of the asset. and is recognised in the statement of Ifnancial act5vitles. 1.7 Investment propertles Investment property. which is property held to earn renials andlor for capital appreciation. is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in prolit or loss. 1.8 Flxed asset Investments Fixed asset investments are inirially measured at transacrion price excluding transaction costs. and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net incomellexpenditurel for the year. Transaction costs are expensed as incurred. 1.9 Impalrment of flmed assets At each reporting end date. the Trust reviews the carrying amovnts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the imkxiirment 1.10 Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilib'es. -20-
ARMED FORCES EDUCATION TRusr NOTES TO THE FINANCIAL STATEMEpirs IcoNriNUEDI FOR THE YEAR ENDED31 AUGUST2025 Crltlcal accountln8 estlmates and ludBements In the application of the Trust's accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amounl of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The e5tirnates and underlying assumptions are rewewed on an ongoing basis. Revisions to accounting e5timate5 are recogni5ed in the period in which the estimate 15 revised where the revision affects (mly that period. or in the period of the revision and future pÈriods where the revision affetts both current and future periods. Management review the judgements and estsmaies used to deteimine the fair values attributed to the charity's investment property on an annual basis. They consider the mosi recent revaluation disclosed in note 13 to be a true and fair reflection ol the market value of the property at the reporting date. Grants to be paid over multiple years are recognised in full in the year in which they are awarded. The Trustees believe there to be no performance related requirements on the part ol the grant recipient and there is therefore a sufficient degree of probability the 8rant will be paid. There were no other key sources of estimation uncertainty. Donatlon5 and le8acles Unre5trlcted funds Total 2025 2024 Donations 1,000 313 Charitable aetlvittes Income Income 2025 2024 Rent received Deposit account interest 539,443 4.291 520,928 2.603 543.734 523,531
ARMED FORCES EDUCATION TRusr NOTES TO THE FINANCIAL STATEMEpirs IcoNriNUEDI FOR THE YEAR ENDED31 AUGUST2025 Charltable actlvlttes Charltable activities 2025 Support Governance costs osts 2025 2025 Total 2025 Total 2024 Depreciation and impairment Grants to institutions Grants to individuals Salaries Insurance Admin and other costs Advertlsing Auditors, remuneratr'on Legal and other professional fees Trustees. expen5e5 and meeting COSIS 562 458.917 142,975 562 562 458,917 142.975 43,567 1.840 lQ,598 1.469 5,422 9.193 2,121 710,712 189.936 40,854 1.820 11,750 1,159 5,216 1,811 1,432 43,567 1.840 10,598 1.469 5.422 9,193 2,121 602.454 57.474 16.736 676.664 965,252 602,454 57,474 16,736 676,664 965,252 -23-
ARMED FORCES EDUCATION TRusr NOTES TO THE FINANCIAL STATEMEpirs IcoNriNUEDI FOR THE YEAR ENDED31 AUGUST2025 Grants payable The total grants payable to InltUtionS during the year were as follows.. 2025 2024 Alexander First School Anglia Ruskin Angus Council Arden Forest Carnagill Primary Charlestown Primary Colerne Primary Cottesmore Primary Danesfield School East End Primary Forces Employment Gateway School GAP - Catteritk Garrison Haveford West Secondary Helston Community College John Logie Baird Primary King Richard's School, Cyprus Kiwi Primary Larkhill Primary Leconfield Primary Lincolnshire schools Linkwood Primary Lyneham Primary MOTMC Shape Neston Primary Other Park Eglos Portsmouth Festival of Friends RAF Ben50n Cluster Raigmore Primary Risedale Secondary SCIP SSCE Cymru Seafield Primary St Geraldine Primary St Gerards 42,000 33.150 18,2911 25,267 3.824 9,800 54,230 27,322 16,135 1761 25.000 25.( 25,(K)O 39.OJO 30,000 46,380 11.665 IS,)0 43.436 38,881 250 17,999 30,242 95,335 250 2.283 922 2,885 24,000 33,267 20.( 37,500 170,OCXJ 22.LN)O 24,580 S,(X)O -24-
ARMED FORCES EDUCATION TRusr NOTES TO THE FINANCIAL STATEMEpirs IcoNriNUEDI FOR THE YEAR ENDED31 AUGUST2025 Grants payable Icontinuedl St Peters Primary St Peters Farnborough Wallop Primary Widewell Primary Wiltshire CC FOF Ysgol Colweg Pen y Fan Total grants to instttutlon5 800 7,995 18.084 15.670 25,120 56.723 710,712 458.916 Grants are accrued at the date they are approved by the trustees and communicated to reclplents. based on the information available at the time of grant application. If circumstances change, the recipient is required to inform the charity. This can result in a change to the initial value of the grant previojsly agreed. The negatives balances above represent a change in the amounts accrued due to unforeseen cSrcumstances. The tC>tal 8rant5 payable to Collaborative and individua15 during the year was £143,35012024.. £189,9361. Nèt movemènt In funds 2025 2024 The net movement in funds is stated after chaigingllcreditbngl.. Depreciatton of owned tangible fixed assets Profit on disposal of investment propertv 562 121,0001 562 Truste•s None ol the Trustees lor any person5 connected with them) received any remuneration or benefits frorn the Trust during the year. During the year Trustee's had expense5 for Ira¥el and subsistence reirnbur5ed lor a total of £2,12112024.. £1,432). Employees There was l employee during the year12023- 11. No staff received emoluments in excess of £60,CQ). Staff costs represent the remuneration of key management personnel. -25-
ARMED FORCES EDUCATION TRusr NOTES TO THE FINANCIAL STATEMEpirs IcoNriNUEDI FOR THE YEAR ENDED31 AUGUST2025 10 Galns and losses on I$tments Unrestrlcted Unrestrlcted funds funds 2025 2024 Gainslllossesl arising on: Revaluation of investments Revaluation of investment properties Sale of investment propertie5 234,462 328,937 200,000 21,C 255.462 528.937 11 Taxatlon The charity 15 exempt from tsxation on its activitie5 because all its income is applied for charitable purpose5. 12 Tanglble flxed assèts Computers C05t At I September 2024 1,702 At 31 August 202S 1,702 Depreclatlon and Impalmiert At I September 2024 Depreciation char8ed in the year 562 562 At 31 Au8U5t 2025 1,124 Carry5n8 arnount At 31 August 2025 578 At 31 August 2024 1,140 -26-
ARMED FORCES EDUCATION TRusr NOTES TO THE FINANCIAL STATEMEpirs IcoNriNUEDI FOR THE YEAR ENDED31 AUGUST2025 13 Investment property 2025 Falr value At I September 2024 Disposals 11,985,000 1339.0001 At 31 August 2025 11,646,000 The fair value of the investment property has been arrived at on the basis of a valuation carried out in August 2024 by House & Son Chartered Surveyors, who are not connected with the Trust. The valuation was based on the estimaled amounts a willing buyer would purchase the property for at arm's-length. The Trustee5 consider the valuation of the remainin8 properties to be appropriate at 31 Au8U5t 2025. The cost of the investment property to the charity was £11,299.65112024.. £11,589.7351. 14 Flxed asset Investments L15ted Investments Cost or valuatlon At I September 2024 Valuatitsn Changes 2,937,292 234.462 At 31 August 2025 3,171.754 Carrylng amount At 31 Au8USt 2025 3,171,754 At 31 August 2024 2,937,292 IS Credltors: amounts fallln8 due wlthln one year 2025 2024 Grant creditor5 Accruals and deferred income 46,948 716.172 6,134 559,412 763,120 565,546 Included within accruals are grants agreed for future periods of £734.39712024- £552.9911. -27-
ARMED FORCES EDUCATION TRusr NOTES TO THE FINANCIAL STATEMEpirs IcoNriNUEDI FOR THE YEAR ENDED31 AUGUST2025 16 Credltors: amounts fallln8 due after more than one year 2025 2024 Accruals and delerred income 23,265 103,331 Included within accruals are grants agreed for future periods of £23,26512024. £103,331). 17 Unrestrirted funds The unrèstricted funds of the tharity ¢omprise the unexpended balantes of donations and grants which arè not subject to specih"c conditions by donois and giantors as to how ihey may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes. Atl September 2024 Incomln8 resources Resources expended GaSns and At 31 Au8USt 1055es 2025 General funds 14,521,951 544,734 1676,6641 255,462 14,645,483 Prevlous year: Incomlng resources Resources expended GaSns and At 31 August losses 2024 September 2023 General funds 14,434,422 523,844 1965,2521 528,937 14,521,951 18 Rèlatèd party transacdons There were no disclosable related party transactions during the year12024- none). 19 Operatln8 lease The charity is the lessor to a 50 year operating lease ending I September 2061. Investment incorne for future periods 15 based on rental fees payable lor the previous year plu5 any change5 in RPI. -28-