Improving the inclusion, safety and success in school of young people
experiencing absence, exclusion or marginalisation.
THE DIFFERENCE EDUCATION LTD
ANNUAL REPORT AND AUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
Charity Registration No. 1184843 | Company Registration No. 11426427
(England and Wales)

Trustees, Annual Report for the Year Ended 31 August 2023
The trustees present their report and financial statements for the year ended 31 August 2023.
Administrative Details
Trustees
C Megson
M Bayin-Adomako
J Benamor
C Heald
J Hutchinson
A Salz
D Whitaker
D Xiberras
Key Management Personnel Kiran Gill
Danny Swift
Jenny Graham
Shaun Brown
(resigned 9 March 2023)
Katharine Booth
{appointed 6 April 2023)
{resigned 8 December 2023)
(appointed 21 February 20241
Lily Bissett
Charity Number
Company Nunther
1184843
11426427
Registered Office
The Difference School House
Morpeth School
Portman Plate
London
E2 OPX
Auditor
Godfrey Wilson Limited
Chartered Accountants and Statutory Auditors
5thFloor Mariner House
62 Prince Street
Bristol, BSI 4QD

Purpose and Activities
Our Purpose
The puryosc: The Difference is a charity founded to irnprove the lives of vulnerable children
by raising the status and expertise of those who teach them. By 2030 The Difference has
ambitions to influence school leadership across the country.
The problem: Schooling isn't working for our most vulnerable children. Every week in
England 109 children- equivalent to three full classrooms - are permanently excluded from
school. These children are often experiencing rnultiple vulnerabilities- more likely to live in
poverty, have learning needs, and be suffering mental health challenges stemming from a
lack of safety in their lives. These young people commonly experience marginalisation and
inequality. disproportionately they have Gypsy Rorna and Traveller or black Caribbean
heritage. Once excluded, life chances are dramatically reduced. As they become adults,
these young people are unlikely to become fully literate, vulnerable to long-term and
serious mental ill-heaith and too often are involved in the criminal justice system.
But this isn't the full picknre. Children are falling out of learning in an increasing number of
ways- school suspensions have been rising, hundreds of thousands of children post-
pandemic are excluding themselves through absenteeism, and untold numbers are
increasingly struggling to stay in class - absenting themselves in-school or being sent outside
the elassroom door. And in all these instances, demographic patterns persist- those losing
learning are disproportionately experiencing vulnerability and marginalisation.
OUL" work: From 2022-23 The Difference worked on finding and growing the people who will
become tomotTOW'S inclusive school leaders. Our two-year Difference Leadership Programme
has developed teachers with the will and skill to lead improved outcornes for vulnerable
children, by placing and training them in schools for excluded learners. Our Inclusive
Leadership Course provides a year of professional developrnent for existing mainstream
senior leaders. The Difference has identified best practice in Inclusion, sharing this with
both Alternative Provision (API and mainstream school leaders, as well as aeross the whole
education sector. We share our research on inclusive policy with key stakeholders in
education, while highlighting and celebrating leaders and groups of schools who are
changing the story on school exclusion. In 2022-23, we have worked on laying the
foundations for a growing body of research, impact and influencing work over the coming
years, building our team to drive the campaign to make schools meaningfully more
inclusive.
Our .Qctiiities
Our strategy in 2022-23 Academic year focussed on scalable irnpact on the life-outcomes of
vulnerable children via People, Practice and Policy. This work wa5 as follows:

I PEOPLE I PRACTICE I POLICY
11
GROW EXCEPTIONAL LEADERS
1MAOU6H THE PIFFERENCE
LEADERS PROGRAMME
FIND AND SHARE INCU)SIVE
PRACTICE ACROSS TEACIIERS IN
fflAINSTREAffl & AP
INFORM LOCAL ANP NAIIONAL
POLICY TO IrnPROVE OVTCI)mES
FOR VULNERA8L£ CHILPREN
People: Difference Leadership Programme
Teacher recruitment". The Programme raises the profile of working in Alternative
Provision schools, establishing it as an aspirational career route that attracts the best
teachers.
Leadership Development and Specialist Teacher Training: Training provides
intensive skills development for Difference Leaders during two years in AP schools.
We rnonitor their progression and impact, adding to the evidence for what works in
reducing school exclusion.
Practice: School Leadership Development and New Practice Research
Mainstream partnership via the Inclusive Leadership Course: The Difference
delivers the InclusiFe Leadership Course- a year-long professional development
offer for mainstream Headteachers, Deputy Heads and Assistant Heads keen to
improve Inclusion in their schools. Leaders learn about key relational practices and
cornplete accompanying assignments to support them to lead whole-school change.
New practice research: The Difference's partnerships and wider practice research
enable us to identify the practice and systems currently improving outcomes for
vulnerable children, across AP and mainstream sehools. This learning is shared
through our publications and research collaborations, as well as informing our
programmes.
IncludEd Teachers, Conference: The Difference runs an annual Teachers,
Conference, bringing together researchers, policymakers and teachers to share the
sehool practice and systems whieh improve vulnerable children's life outcomes.
Community-buildlng cross-sector: To disseminate our research, The Difference
presents at education conferences, delivers online training) speaks on podcasts,
and publishes in sector press media, to reach thousands of teachers.

Policy: Medxa, Policy Events and New Policy Research
MedAa: The Difference keeps exclusions in the spotlight, supporting journalists to
ensure national coverage of school exclusion.
New Policy Research: We conduct original research on practice, systems and
outcomes across and beyond our partner schools.
Infonning Pollcymakers: Our work involves organising roundtablesy presenting
research to politicians and contributing to research projects with think tanks and
academics, sharing the frontline realities of policies affecting vulnerable children.

Public Benefit
All of The Difference's activities are undertaken to further our charitable puryose, which is
to advance education for the public benefit. More specifically) the charity is working to
improve the inclusion, safety and success in school of young people experiencing absence,
exclusion or marginalisation, by raising the status and expertise of those who educate them.
The charity believes that improved outcomes for the most vulnerable benefit society as a
whole, and that education plays an important role in bringing about this change. The
trustees have a duty to consider public bertefit guidance published by the Charity
Commission. We are satisfied that the puryose and activities of the charity continue to
satisfy the requirements of the public benefit test set out in section 17 of the Charities Act
2011. We have demonstrated how we have worked towards our charitable puryoses, by
setting out our achievements during the year in this Trnstees, Report.

Achievements and Perforniance
This annual report covers the financial year 2022123 in terms of activities, achievements,
financial review, risks and uncertainties, structure) governance and management.
For more detailed inforniation on The Difference's impact in 2022123) please see our Im
People 2022123
Since 2019, The Difference has developed People through two unique programmes:
The Difference Leadership Programme
The Inclusive Leadership Course
Forschool leaders who aspire to be tomorrow's
inclusive headteachers. Participants work as a
senior leader in Altemative Provision Is¢hools
or units that serve excluded children) fortwo
years. They receive 290 hours of professional
éevelopment from The Difference, 5UPPOrting
them to become expert practitioners in
school inclusion.
Targeted at existingsenior leaders in mainstream,
nging from Executive Headteachers to Special
Education Needs Co-ordinators ISENCosl.
It combines six intensive training days with
practical assignments. Participants engagewith
new thinking and inclusive solutions to tackle
common challenges such as student wellbein&
persistent absenteeism, and repeat exclusion.
In our tlrsty•ar, w•
In our flfst y•ar, w•
Trnlnod 10
$ehool1oad•rs
Trnlned 12
sd￿1 l¢ad•rs
Partnerèd wlth
9 schools
Reaeh•d
Partnered with
11 schools
Reached
826
d•nts
13,510 9
Flve years on, we've
Flve years on, we've
Trained 75
sch¢)ol leaders
Trained 414
school leader8
Partnered wlth
57 sehools
Partnered with
270 ¢ch•)ols
17.174
205,435
stud•nts
100% of the 2023 graduates from the Difference Leadership programme have had an evxdenced
positive impact on their school, according to their headteachers. This includes improvements to
curriculum, behaviour, mainstream reintegration, and attendance. 870/6 have progressed to more
senior leadership roles since they started the programme two years ago.
9896 of participants on this yearfs Inclusive Leadership Course reported a positive impact in
their school as a result of implementing Course learnings.

Durlng his two years as Assistsnt Headteacherfor a
Hampshire pupil referral unit, Taylorand his fantaS￿C
team developed a new behavlour pollcy whlch leaned
heavily into the school's exlstlng trauma-lnfomied
and relational approaches. This policy focused on
understanding the origins of challenging behaviourand
putting support in place rather than automatic sanctions.
E.g. referringstudents with vaping problems to local
health services or rearting to the use of inappropriate
language through class discussion and education effort
From 2021122 to 2023, the school saw a 50% redurtion
in suspensions term-on-term, and an Il% reduction in
unauthorised absence. Taylor hastaken this experien
with whole-school inclusion impartonto a new role as
Deputy Headteacherof Reach Academy- an influential.
malnstream all-through school.
Taylor Bellamy
"1093 Diffe.'e.:ioe Leadershlp
Programme graduate
-Lastyear we
had something
in the region of
750 suspensions.
After fomialfy
intmducing
the whole
trduma.based
practice, our zones of regulation, our
understanding andmaknng teachers
understand the importance of the
restorative justice approach. we've got
it down to four suspensions this year."
Hablb Hussein Deputy Headteacher and
2022123 ILC Participant
Where is The Difference
going no
Afterfive years of delivery and piloting
our programrnes, we have seen amazing
impact, a tiny portion of which is detailed
above. We are now in the process of
reviewing our learnings- with input from
ouryouth action group, school leaders
and investor coalition- to help us evolve
our approach for our 2025-2030 Strategy.
We will set out how our programmes
will expand the number of Alternative
Provision and ma•nstream schools we
work with,. deepen the impact of inclusion
for those schools,. and develop our impact
capture so we can share learnings from
our most successful school partners across
the country. Watch this spacel

Practice 2022123
The Difference identifies effective inclusion practice by tracking interventions that improFe
outcomes. We investigate impact within our own programmes and partner with other
organisations to research practiee more widely.
Practice through Programmes
A keycOn￿Ptdl$CY$5ed and developed within
74% stated theres been a ieduction I
all Difference programme5 1sWhole.School
dètèntions andlor ￿havIoUr points
Inclusion: the idea that all students have
wellbeingand safeguarding needs and that
54% are already seeinga reduction In
all staff have a role to play in recognisingand
suspenstons and permanent exclusions
suprKJrtingthese needs. EffectNeWhole-School From thi5, The Difference has developed the
Inclusion means improved outcomes for a
much wider group. not just a minority known
Ex¢lu$ion$ Continuum. This tool encourages
to be at5ignificant risk. This was reflected in
all school le3ders land policymakers) tt>
frame permanent School exclusion as the
the impact ￿ported by leaders on our 2022123 end point of a continuum that includes
Inclusrve Leadership Cour5•- dernonstratirlg detentions, time outside of classrooms,
the power ol inclusion to positively affect
and absenteeism. Attention to data across
everydayoccurrences In schools. aswell as
the continuurn means schwls are better
morÈserious incidents-.
equipped to identifyvulnerdble stlkdents
eartier, providetargeted inteNentions, and
ultlma¢ely reduce allfomis of ltssi leamin8.
92% saw improvement in the
de*calation otchallenging behaviour
82% reported irnproved outcomes foi
vulnerable st¥Jdents
Contlnuum of
Conthiuum ot s￿1-
*¢lu￿On and Ab$
Etecttve Home Ed
Monag8d Mov8•
Persistent Absence
Suspensions
Internd Exclusion
TNantSng LessoTr8
ToiletTrip8
Dotsntlon
Timeout cards
Stand Oulglde Room
L4teneag to Legsong

Spreading Effective Practice
Where is The Difference
going now?
In January 2023, The Difference welcomed
over5QQ edutators. students. researchers. and
education charftiesto IncludEd, ourannual
cofiferente. The best mind5 working on inclusive
education host workshops on the practi￿. systems
and t(x)Is that can spread to more schools. Thi5
year, topics ranged from contextual safeguarding
to social pedagogyto diversifying turritLtlums.
There's a huge appetite for actionable
research and transferable prdCti£e in
inclusion. as schools Erapplewith rising
absenteelsm and an Alternative Provislon
sector understrain.The DIffe￿nCe- and our
School partners- are atthefrontline of this
work and have expanded our Research and
Impact Directorate accordingly. Upcoming
prioiities include= the developmentof
a safety and wellbeing measure to help
schools trackand respond to student need.
and publication ofongoing research intothe
under-explored a￿3 of intemal Alteinative
Provision lin partnershipwith National
Foundation for Education Researchl.
oday& InCI￿lEd was nothing short of
brilliant. So many inspiring speakers
and so so much to take away, think
about, talk about, write about. read
about andm05t importantly...doV
thony Assistant Headteacher

PoIicy 2022123
With a general election coming up and many challenges in education reaching crisis levels,
The Difference's policy work has taken on new urgency.
Influencing in Partnership
September 2023 saw the launch of the Who's Losing Learning Coalition by founding partners,
The Difference, Impetus, and the Institute for Public Policy Research, all bringing a range and
depth of experience aeross the education sector.
The Coalition aims to reveal the extent to which children are currently missing out on learningy
join the dots between different types of exclusion, and champion the Cause of the most
vulnerable learners who are disproportionately affected. There's been a 301yo increase in
suspensions post-pandemic and our analysis shows this rise has largely affected children living
in poverty or who have speeial educational needs (respectively 3.7 times and 4 times as likely to
be suspended as their peers). Racial inequity also persists. Dual heritage white and Black
Caribbean children are suspended at nearly double the rate of white peers, while Gypsy Roma
Traveller children are sent home 3.2 times as much.
The Who's Losing Learning Coalition is already raising the alarm about lost learning as a social
justice issue, securing press coverage in The Guardian, Sky, ITV, and Schools Week.
Where is The Difference going now?
The Wh05 Losing Learning? Coalition will collect and analysefurtherdata, draw
on insights from young people and school leaders, and review good inclusion
prnctice nationally. Nextyearwill see the coalition publish two papers- one
on problern diagnosis and another on policy recommendations. The ultimate
aim is that fecommendations are taken up by policymakers, leading to schools
re￿Iving incentives. resources and support to tackle lost learning at scale.
The Difference has appointed a new Education Policy Lead, Cristin O'Brien,
who will play a key part in our influencing strategy- drawing on experience
from her preVio￿S role at Otsted and as a Social workerserwng Irish Traveller
communtties lone of the most excluded demographics in England). Cristin's
work will ensure the insights ofThe Difference community- young people,
school leadets. education experts, researchers- get in front of the right policy
stakeholders to hèlp us effectively scale expertise in inclusitsn.
io

Financial Review
Financial position
We achieved a financial surplus of £0.2m in 2022123 (£0.05m in 20211221. Our income
increased l£1.5m up from £l.Im in 20211221 as did our expenditure (£1.3m up from £l.Im in
2021122), as The Difference expanded the nurnber of schools we partnered with, and began
to build our second significant function: a research, irnpact and influence team to spread
learnings from our programmes with schools nationally.
Income
Our total income through the academic year 2022123 was £1.5m lup from £l.Im in 2021122).
The Difference's prirnary source of thnding is from philanthropy) With the majority of our
income coming from trusts and foundations and small but growing group of individual
donors and coryorate foundations. This year voluntary income made up 8396 of overall
income. Thank you to all our donors who made our work possible this year.
Our 2021-2025 strategy has included ambition to grow traded revenue to The Difference
including school contributions to our programmes, speaking events, and research contract
work which now make up a growing proportion of our income. The proportion of The
Difference's income from school contributions has risen over the years from 2% in
201912020 to 1796 in 2022123. In 2023124 the charity is undergoing a year of strategy
development ahead of our 2025-2030 Strategy, which will set out future ambitions to grow
this rcvenue strcam further.
The Difference does not use any external professional or comrnercial fundraisers - all
fundraising activities are conducted by our own employees. The Difference is not currently
subscribed to any schemes for fundraising regulation and does not do any kind of
communityy events or digital fundraising. The entirety of our fundraising activity is
conducted with grant-making organisations, meaning we do not haFe any interaction with
potentially vulnerable members of the public. The Difference has never received any
complaints about fundraising activities which we've undertaken.
Expenditure
The Difference's total expenditure through the academic year 2022123 was £1.3m (up from
£l.Im in 20211221.
As outlined in the Achievements section of this report, expenditure has been on activities
recruiting and developing school leaders and delivering new research projects. In this
academic year, the team recruited their highest ever number of participants (reaching 150
school leaders to deliver in the year ahead 23124). and expanded our second team (Research,
Impact & Influence) to launch the 'Who's Losing Learning?, Coalition and deliver further
research into elements of practice like Internal Alternative Provision. There has also been
li

expenditure on the central team, as we prepared for a year of strategy development in
2023124, which is expected to contract again in 2024125.
As with many other charities, inflation has been a driver in rising costs year-on-year at The
Difference.
Reserves policy
Our unrestrirted lor'free'} resetyes are the net current assets of our general unrestricted
funds.
We hold these funds to:
ensure we can carry out rnulti-year work already committed to be delivered to
teacher5 and schools
provide working capital to finance our day-to-day operations
provide a safeguard against failure to deliver against contractual obligations we have
entered into
protect our solvency in the event of any Curtailment in our ineome-generating
activities
It is the Difference's policy that unrestricted funds which have not been designated for a
specific use should be maintained at a level equivalent to between three to six months,
budgeted operating costs, where possible (currently between £500k and £988kl. The trustees
consider that reserves at this level would ensure that, in the event of a significant change in
fundingj The Diffcrence 15 able to meet its obligations to programme participants, partner
organisations and staff, whilst giving consideration to ways in which additional or
alternative funds may be raised.
On 31st August 2023, total ￿ndS were £1.5m, of which £246k were restricted and £700k were
designated, leaving free reserves of £573k.
Going concern
Trustees and the senior managernent tearn review spending and revenue, and re-forecast
aetordinglyj on a quarterly basis. Current forecast cash flow shows that The Difference has
adequate free cash to meet its obligations as they fall due.
Trustees are content that The Difference has adequate resources to fund its activities for the
foreseeable future. The trustees therefore believe that the eharity is a going concern, and so
have prepared the aceounts and flnancial statements on this basis.
12

Risks & uncertainties
Effective risk management is eritical to ensuring that The Difference achieves its mission
for the improved life-outcomes of vulnerable children. All our employees are encouraged
and supported to identify and manage key risks within their work, and to comrnunicate and
escalate these appropriately. Through this, responsibility for risk 15 distributed across the
charity.
We manage our risks in line with our risk-rnanagement poIicyy which includes the collation
and monitoring of key organisational risks within a risk register. The Executive Team has
responsibility and accountability for the risk register. The Board of Trustees maintains
overall accountability by reviewing risks escalated from the Executive on a quarterly basis.
The key risks which will be managed in the year ahead, 2023124 are:
Reduced budgets in Alternative Provision sch(M)Is make it harder to find vacancie$ which
can be filled by 8enior leaders from mainstream Schools, reducing scope to scale the
Difference Leader$ programme.
Mitigation$: The Difference has been evolving its Difference Leaders programme in
2022123, with experimental Difference Leader placements in mainstream schools
running internal Alternative Provision, and working with existing staff in Alternative
Provision schools rather than asking schools to hire new staff. There have been
early signs of high impact in these new placements, and The Difference is looking to
its 2025-2030 Strategy to continue to evolve programme delivery for the highest
impact return on investment.
Impact of the Cost of Living Crisis and other sector trends I wlicy changes on
school budgets and, therefore, the charity's traded income
With schools seeing real-terms reduction in funding due to inflation, and especially
sharp rises in energy bills, many schools are having to reduce staffing numbers, and
cut back on costs previously deemed essential. This is likely to affect sales for The
Difference's programmes and services.
Mitigations- Part of the response will be to redouble efforts to market our
programmes including strengthening our sales function, and to articulate their value
- particularly to students most affected by the econornic crisis. We have built an
increased fundraised income buffer into our budgeting) to ensure cost coverage of
all bases.
The Difference's fundraising function is overly reliant on the CEO, at a time when
fundraised revenue is more crucial to build capacity for impact via a new strategy
13

Mitigations: The Difference has hired a fundraising expert to develop our
fundraising strategy and function in 2023124 including hiring a new Head of
Fundraising at The Difference.
14

Structurey governance & management
Constitution and governing documents
The Difference Education Ltd is governed by its Mernorandum of Association and Articles of
Association.
The Difference Education Ltd is a charitable companyj limited by guarantee and not having
a share capital. The Difference operates within England and Wales capital (Charity nurnber:
1184843. Company nunther: 11426427). The Difference Education Ltd gained charitable
status from the Charity Commission in 2019.
None of the trustees has any beneficial interest in the cornpany. All of the trustees are
rnernbers of the cornpany and guarantee to contribute £10 in the event of a winding up.
Dire('.tiirs aii(l Tru.%t(.'c%
The Board of Trustees meets regularly to govern the charity. During the period of reporting)
it held four meetings. At its meetings in 2022123, the Trustee Board agreed the budget for
2023124. advised and approved the re-structure of the Executive Team. agreed on embarking
on process of post-pilot programme washup and future strategy design. managed and
rnitigated ongoing risk. and approved delegation to and growth of The Difference's staff
team.
Or4yanisational StriictLire and Ke)-' Personnel
The appointment or election of Trustees is as determined by the Board of Trustees. The
Trustees have overall responsibility for the charity, but the day-to-day running of the charity
is delegated to the Chief Executive Officer, Kiran Gill, and her staff. This year, Kiran Gill
returned frorn maternity leave in January 2023. Danny Swift took on the Chief Executive's
role in her absence, which covered September 2022-January 2023.
The Trustees are responsible for:
Overseeing the work of the Chief Executive.
Approving plans to scale the charity.
Agreeing the strategy for the development and growth of The Difference.
Ensuring that The Difference meets its legal responsibilities.
Ensuring The Difference improves the lrfe outcomes of the most vulnerable children
through their work and practice,. and
Ensuring sound financial management of The Difference.
Induction and Training policy for new Trustees
New Trustees meet with the Chief Executive and Chair to discuss their role and
responsibilities. This gives an opportunity to answer any questions raised by the new
Trustee and to clarify the content of any written documentation circulated to the new
15

Trustee. Opportunities for training of the Trustees are presented to them, as well as pre-
existing documents on The Difference's strategy) impact, and previous decisions. The Chief
Executive ensures Trustees are kept up to date with developments in Charity and company
law. This is achieved through briefings at Board meetings and, as appropriate, circulated
written information.
Executive Pay Policy
The Trustees consider the CEO and Directors to represent the Executive Team of The
Difference.
Changes to salaries take place after their Performance Management Reviews on an annual
basis. These are determined by the Chair of Trustees in coordination with other trustees.
Such Changes may take plaee on the back of exceptional performanee or an evolution of role
eorresponding to inereased responsibility. This year, The Difference decided to set a new
pay policy to include salary increases on the basis of changed responsibilities only (ie. no
performance related payl. These salaries are regularly benchmarked against other similar
organisations in our sector.
Statement of responsibilities of the t￿￿teeS
The trustees (who are also directors of the charity for the purposes of company lawl are
responsible for preparing the trustees, report and the financial statements in aecordanee
with applicable law and United Kingdom Accounting Standards, including Financial
Reporting Standard 102: The Financial Reporting Standard applicable in the UK and
Republic of Ireland (United Kingdom Generally Accepted Accounting Praetiee).
Company law requires the trustees to prepare financial statements for each financial year,
which give a true and fair view of the state of affairs of the charity and of the income and
expenditure of the Charity for that period. In preparing those financial statements the
trustees are required to:
select suitable accounting policies and then apply them consistentlyy
obSe￿e the methods and principles in the Charities SORP.
make judgements and accounting estimates that are reasonable and prudent.
state whether applicable UK accounting standards and statements of recommended
practice have been followed, subject to any material departures disclosed and
explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping proper accounting records whieh disclose with
reasonable accuracy at any time the financial position of the charity and which enable them
to ensure that the financial statements comply with the Companies Act 2006. The trustees
are also responsible for safeguarding the assets of the charity and hence for taking
16

reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the trustees are aware:
there is no relevant audit infonnation of which the charitable company's auditors are
unaware,. and
the trustees have taken all steps that they ought to have taken to make themselves
aware of any relevant audit inforn]ation and to establish that the auditors are aware
of that information.
The trustees are responsible for the rnaintenance and integrity of the corporate and
financial infomation included on the charitable company's website. Legislation in the
United Kingdom governing the preparation and dissemination of financial statements may
differ from legislation in other jurisdictions.
Auditors
Godfrey Wilson Limited were re-appointed as auditors to the charitable company during the
year and have expressed their willingness to continue in that capacity.
The trustees, report was approved by the Board of Trustees.
C Megson
Chair of Trustees
Dated: 18 March 2024
17

Independent auditors. report
To thg members of
The Difference Education Ltd
Opinion
We have audited the financi81 statements of The Difference Eduealion Ltd (the 'charitll for the year
ended 31 August 2023 which comprise the statement of financial aclivilies, balance sheet, statement
of cash flows and the related notes to the financial statements, including a summary of significant
accounting policies. The financial reporting framework that has been applied in their preparation is
applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard
102.. The Financial Reporting Standard applicable in the UK and Republic of Ireland Iunited Kingdom
Generally Accepted Accounting Practice).
In our opinion, the financial stalemenls..
give a true and fair view of the slate of the charity's affairs as at 31 August 2023 and of its
incoming resources and application of resources, including its income and expenditure, for the
year then ended",
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting
Practice", and
have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
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 audit of the financial statements section of our report. We are independent of
the charity in accordance with the ethical requirements that are relevant lo our audit of the financial
slalements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate lo provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial ststemenls, we have Concluded that the trustees, use of the going concern
basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have perfomied, we have not identified any material uncertainties relating lo
events or conditions that, individually or collectively, may cast significant doubt on the charity's ability
lo continue as a going concern for a period of at least ￿e1ve months from when the financial
statements are authorised for issue.
Our responsibilities and the responsibilities of the Iruslees with respect lo going COn￿M are
described in the relev8nt sections of this report.
Other information
The trustees are responsible for the other information. The other information comprises the
informab'on included in the annual report other than the financial statements and our auditor's report
Ihereon. Our opinion on the financial statements does not cover the other Information and. except to
the exlenl otherwise explicitly slated in our report, we do not express any form of assuran
conclusion thereon.
18

Independent auditors. report
To thg members of
The Difference Education Ltd
In connection with our audit of the financial stalemenls, our responsibility is to read the other
information and, in doing so, consider whether the other information is materialty inconsistent wth the
financial statements or our knowledge obtained in the audit or otherwise appears lo be materially
misstated. If we identify such material inconsistencies or apparent material misstalemenls, we are
required to determine whether there is a material misstalemenl in the financial statements or
material misstatement of the other information. If, based on the work we have performed, we
conclude that there is a material misslatemenl of this other information, we are required to report that
fact.
We have nothing lo report in this regard.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit".
the information given in the Iruslees, report for the financial year for which the financial statements
are prepared is consistent with the financial st8temenls," and
the trustees, report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charity and its environment obtained in the
course of the audit, we have not identified material misstalemenls in the trustees, report. We have
nothing to report in respect of the following matters in relation lo which the Companies Act 2006
requires us to report to you if, in our opinion..
adequate accounting records have not been kept or returns adequate for our audit have not been
received from branches not visited by us.,
the financial statements are not in agreement with the accounting records and returns.,
certain disc105ures of Iruslees, remuneration specified by law are not made", or
we have not obtained all the information and explanations necessary for the purposes of our audit.
Responsibilities of the trustees
As explained more fully in thè Iruslees, responsibilities ststement set out in the trustees, report, the
Iruslees are responsible for the preparation of the financial stslemenls and for being satisfied that
they give a true and fair view, and for such internal control as they determine is necessary to enable
the preparation of financial statements that are free from material misstslemenl, whether due to fraud
or error.
In preparing the financial statements, the trustees are responsible for assessing the charity's ability to
continue as 8 going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the Iruslees either intend lo liquidate the charity or to cease
operations, or have no realistic alternative but to do so.
19

Independent auditors. report
To thg members of
The Difference Education Ltd
Our responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financi81 statements as 8 whole
are free from material misslalement, whether due lo fraud or error, and to issue an audilorfs report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guamntee
that an audit conducted in accordan￿ with ISAS IUKI will always delecl a material misstslement
when il exists. Misstatements can arise from fraud or error and are considered material if, individually
or In the aggregate, they could reasonably be expected to Influen￿ the economic decisions of users
taken on the basis of these financial ststemenls.
Irregularities, including fraud, are instsnces of non-compliance with laws and regulations. We design
procedures in line with our responsibilities, outlined above, to detect material misstatements in
respect of irregularities, including fraud. The prO￿dureS we carried out and the extent lo which they
8re capable of detecting irregularities, including fraud, are detailed below..
111 We obtained an unders18nding of the leg81 and regu18tory framework that the charity operates in,
and assessed the risk of non-compliance with applicable laws and regulations. Throughout the audit,
we remained alert lo possible indications of non-compliance.
121 We reviewed the charity's policies and procedures in relation to".
Identifying, evaluating and complying with laws and regulations, and whether they were aware of
any instances of non-compliance.,
Deterting and resF)onding to the risk of fraud, and whether they were aware of any actual,
suspected or alleged fraud., and
Designing and implementing internal controls to mitigate the risk of non-compliance with laws and
regulations, including fraud.
131 We inspected the minutes of Iruslee meetings.
141 We enquired about any non-routine communication with regulators and reviewed any reports
made to them.
151 We reviewed the financial ststement disclosures and assessed their compliance with applicable
laws and regulations.
IS) We performed analytical prttedures to identify any unusual or unexperted transactions or
balances that may indicate a risk of material fraud or error.
171 We assessed the risk of fraud through management override of controls and carried out
procedures to address this risk. Our procedures included.
Testing the appropriateness of journal entries.,
Assessing judgements and accounting eslimales for potential bias.,
Reviewing related party Iransaclions", and
Testing transactions that are unusual or outside the normal course of business.
Because of the inherent limitstions of an audit, there is a risk that we will not detect all irregularities,
including those leading to a material misstatement in the financial statements or non-compliance with
regulation. Irregularities that arise due lo fraud can be even harder lo detect than those that arise
from error as they may involve deliberate concealment or collusion.
20

Independent auditors. report
To thg members of
The Difference Education Ltd
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council's website at." www.frc.org.uklauditorsresponsibilities. This description
forms part of our auditor's report.
Use of our report
This report is made solely lo the charity's members, as a body. in accordance wlh Chapter 3 of Part
16 of the Companies Act 2006. Our audit work has been undertaken so that we might stale lo the
charity's members those matters we are required to stste to them in an auditor's report and for no
other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to
anyone other than the charity's members as a body, for our audit work, for this report, or for the
opinions we have formed.
Dale." 18 March 2024
William Guy Blake ACA
(Senior Statutory Auditor)
For and on behalf of..
GODFREY WILSON LIMITED
Chartered accountsnts and statutory auditors
5th Fl(ior Mariner House
62 Prince Street
Bristol
BS14QD
21

The Difference Education Ltd
Statement of financial activities (incorporating an income and expenditure account)
For thg
ear endod 31 Au
ust 2023
2023
Totsl
2022
Total
Reslricled Unrestricted
Note
Income from:
Donations
Charitable activities
429,765
825,741 1,255,506
250,199
250,199
925,546
201,067
Total income
429,765 1,075,940 1.505,705
1,126,613
Expenditure on:
Raising funds
Charitable activities
112,705
112,705
764,216 1,187,700
76,967
991,176
423,484
Total expenditure
423,484
876,921 1,300,405 1.068,143
Net income and net movement in funds
6,281
199,019
205,300
58,470
Reconciliation of funds:
Total funds brought forward
239,677 1,073,603 1.313,280 1,254,810
Total funds carried fO￿ard
245,958 1,272,622 1.518,580 1,313,280
All of the above results are derived from continuing activities. There were no other recognised gains
or losses other than those staled above. Movements in funds are disclosed in note 13 to the
accounts.
22

The Difference Education Ltd
Balance sheet
Asat31Au
ust 2023
2023
2022
Note
Current assots
Debtors
Cash at bank and in hand
68,371
1,557.312
65,935
1,383,080
1,625,683
1,449,015
Liabilities
Creditors.. amounts falling due within 1 year
10
107.103
135,735
Net current assets
1.518.580 1,313,280
Net assets
12
1518.580 1,313,280
Funds
Restricted funds
Unreslricled funds
Designated funds
General funds
13
245.958
239,677
699.343
573,279
777,153
296,450
Total charity funds
1,518.580
1,313,280
These accounts have been prepared in accordan￿ with the special provisions applicable to
companies subject to the small companies, regime.
Approved by the trustees on 18 March 2024 and signed on their behalf by
Clzkistli18 M8JSOII
C Megson, Chair of Trustees
23

The Difference Education Ltd
Statomgnt of cash flows
For the
ear ended 31 Au
ust 2023
2023
2022
Cash used in operating activities:
Nel movement in funds
205,300
58,470
Adjuslmenls for".
Ilncreasel I decrease in debtors
IDecreasel l increase in creditors
12,4361
28,632
225,965
37,106
Net Cash provided by operating activities
174.232
321,541
Increase in cash and cash equivalents in the year
174.232
321,541
Cash and cash equivalents at the beginning of the year
1383.080 1,061,539
Cash and cash equlvalents at the end of the year
1,557,312 1,383,080
The charity has not provided an analysis of changes in nel debt as il does not have any long temi
financing arrangements.
24

The Difference Education Ltd
Notes to the financial statements
For the
ear 9nded 31 Au
ust 2023
Accounting policies
a) Basis of preparation
The financial statements have been prepared in accordance with Accounting and Reporting by
Charities". Slalement of Recommended Practice applicable to charities in preparing their
accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic
of Ireland IFRS 1021 (effective 1 January 20191- (Charities SORP IFRS 10211, the Financial
Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies
Act 2006.
The Difference Education Ltd meets the definition of a public benefit entity under FRS 102.
Assets and liabilities are initially recognised al historical cost or transaction value unless
otherwise staled in the relevant accounting policy note.
b) Going concern basis of accounting
The accounts have been prepared on the assumption that the charity is able to continue as a
going concem, which the Iruslees consider appropriate having regard lo the current level of
unrestricted reserves. There are no material uncertainb'es about the charity's ability to continue
as a going cOn￿M.
c) Income
All income is included in the statement of financial activities when entillemenl has passed to the
charity, il is probable that the economic benefits associated with the transaction wll flow to the
charity and the amount can be reliably measured. The following specific policies are applied to
particular categories of income..
Income from donations or grants is recognised when there is evidence of entillemenl to the gift,
receipt is probable and ils amount can be measured reliably.
Income from the supply of services is recognised wth the delivery of the servi￿.
Where the grant does not impose specified future performance-relaled conditions on the
recipient, il is recognised in income when the grant proceeds are received or receivable. Where
the grant does impose specified future performance-related conditions on the recipient, it is
recognised in income only when the performance-relaled conditions have been mel. Where
grants received are prior to satisfying the revenue recognition criteria, they are recognised as a
d) Donated services and facilitie5
Income from donated goods is measured al the fair value of the goods unless this is impractlC81
to measure reliably, in which case the value is derived from the cost lo the donor or the
estimated resale value. Donated facilities and services are recognised in the accounts when
received If the value can be reliably measured. In accordance with the Charities SORP IFRS
1021, no amounts are included for the contribution of general volunteers.
25

The Difference Education Ltd
Notes to the financial statements
For the
ear 9nded 31 Au
ust 2023
Accounting policies (continued)
e) Interest receivable
Interest on funds held on deposit is included when re￿1vable and the amount can be measured
reliably by the charity". this is normally upon notification of the interest paid or payable by the
bank.
fj Funds accounting
Unrestricted funds are available for use al the discretion of the trustees to further any of the
charity's purposes.
Designated funds are unrestricted funds earmarked by the trustees for a particular future project
or commitment.
Restricted funds are subjected lo reslriclions on their expenditure declared by the donor or
through the tems of an appeal, and fall into one of two sub-classes." restricted income funds or
endowment funds.
gl Expenditure and irreeoverable VAT
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes
any VAT which cannot be fully recovered, and is classified under headings of the statement of
financial activities to which it relates..
Expenditure on raising funds includes the costs of all fundraising activities, events, non-
charitable trading aclivilies, and the sale of donated g(iods.
Expenditure on charitable activities includes all costs incurred by a Charity in undertaking
activities that further its charitable aims for the benefit of ils beneficiaries, including those support
costs and costs relating to the governance of the charity apportioned to charitable activities.
Other expenditure includes all expenditure that is neither related to raising funds for the charity
nor part of ils expenditure on charitable aclivilies.
All costs, including overhead support costs, are allocated to expenditure categories reflecting the
use of the resource. Staff costs are allocated be￿een charitable aclivilies, fundraising and
support based upon the proportion of time spent on each activity.
h) Allocation of support and governance costs
Support costs are those functions that assist the wort( of the charity but do not directly undertake
ch8ri18ble acb'vilies. Governance costs are the costs associated with the governance
arrangements of the charity, including the costs of complying with constitutional and slatulory
requirements and any costs associated with the strategic management of the charity's activities.
These costs have been allocated between cost of raising fLJnds and expenditure on charitable
activities based on the proportion of staff cost as follows..
2023
2022
Raising funds
Charitable activities
8.40/0
89.7.1
26

The Difference Education Ltd
Notes to the financial statements
For the
ear 9nded 31 Au
ust 2023
Accounting policies (continued)
i) Debtors
Trade and other debtors with no staled interest rale and due within one year are recorded al the
amount of the cash or other consideration expected to be received. Prepayments are valued at
the amount paid.
j) Cash at bank and in hand
Cash at bank and cash in hand includes cash and short term highly liquid investments with a
short maturity of three months or less from the date of acquisition or opening of the deposit or
similar account.
k) Creditors
Liabilities are reC(￿niSed when there is an obligation al the balance sheet date as a result of a
past event, it is probable that a transfer of economic benefit will be required in settlement, and
the amount of the setuement Can be estimated reliably. Liabilities are recognised 8t the amount
that the charity anlicipales il will pay to sellle the debt or the amount it has received as advanced
payments for the goods or services it musl provide.
l) Conduit funding
Conduit funds are monies received for third parties and do not belong lo the charity. The
incoming funds and outgoing payments are excluded from the Statement of Financial Activities.
Any conduit funds in hand at the year end are shown as Creditors in the accounts.
m) Flnanclal Instruments
A financial asset or a financial liability is recognised only when the entity becomes a paty lo the
contractual provisions of the instrument. The charitable company only has financi818ssets and
financial liabilities of a kind that qualify as basic financial inslrumenls.
Basic financial instruments are initially recognised al the amount receivable or payable including
any related transaction costs, unless the arrangement conslitules a financing transaction, where
it is recognised al the present value of the future payments discounted al a market rate of
interest for a similar debt inslrumenl.
Current assets and current liabilities are subsequently measured at the cash or other
consideration expected to be paid or received and not discounted.
n) Pension costs
Contributions lo defined contribution plans are recognised as an expense in the period in which
the related service is provided. Prepaid contributions are recognised as an asset lo the extent
that the prepayment wll lead to a reduction in future payments or a cash refund.
o) Accountlng estlmates and key Judgements
In the application of the charity's accounting policies, the Iruslees are required lo make
judgements, eslimales and assumptions about the carrying values of assets and liabilities that
are not readily apparent from other sources. The eslimales and underlying assumptions are
based on historical experience and other factors that are considered lo be relevant. Actual
results may differ from these estimates.
27

The Difference Education Ltd
Notes to the financial statements
For the
ear 9nded 31 Au
ust 2023
Accounting poli¢ie$ l¢ontinued}
o) Accounting estimates and key judgements Icontinuedl
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in which the estimate is revised if the revision
affects only that period, or in the period of the revision and future periods if the revision affects
both current and future periods.
There are no key sources of eslimalion uncertainly that have a significant effect on the amounts
recognised in the financial statements.
Prior period comparatives: statement of financial activities
2022
Total
Restricted Unreslricled
Ineome from..
Donations
Charitable activities
338,600
586,946
201,067
925,546
201,067
Total Income
338,600
788,013 1,126,613
Expenditure on:
Raising funds
Charitsble activities
76,967
864,326
76,967
991,176
126,850
Total expenditure
126,850
941,293 1,068,143
Net income I lexpenditurel
and net movement in funds
211,750
153,280
58,470
Income from donations
2023
Total
Restricted Unreslricled
Donations
Trusts and foundations
3,000
822,741
3.000
1,252.506
429,765
Total income from donations
429,765
825,741 1.255,506
28

The Difference Education Ltd
Notes to the financial statements
For the
ear ended 31 Au
ust 2023
Income from donations Icontinued}
Prior period comparative:
2022
Total
Restricted Unreslricled
Donations
Trusts and foundations
1,950
584,996
1,950
923,596
338,600
Total income from donations
338,600
586,946
925,546
Income from charitsble activities
2023
Total
2022
Total
Restricted Unrestricted
Inclusive Leadership Course
The Difference Leadership Programme
Consultancy and research
Other
175,525
30,000
29,446
1 5,228
175,525
30,000
29,446
15,228
143,500
15,000
37,401
5,166
Total income from charitablo activities
250, 199
250,199
201,067
Al income from charitable activities in the prior year was unrestricted.
29

The Difference Education Ltd
Notes to the financial statements
For the
ear 9nded 31 Au
ust 2023
Total expenditure
Support and
Raising Charitable govemance
funds
activities
costs
2023
Total
Staff costs (note 71
Freelance staff costs
Pwramme delivery costs- DLP and ILC
Research, Impact and Influencing
Office and equipment
Fundraising
Recruitment
Staff support
Back office costs
Other operating expenses
Travel expenses
73,930
645,974
183,367
4,143
903,271
4,143
164,169
49,786
57,435
1,138
54,639
8,985
36,711
4,261
15,867
164,169
49,786
57,435
1,138
54,639
8,985
36,711
4,261
15,867
Sub-total
75,068
859,929
365,408 1.300,405
Allocation of support and governance costs
37,637
327,771
365,408
Total expenditure
112.705 1.187.700
1.300,405
Total governance costs were £9,20912022.. £8,235).
Prior period comparative
Support and
Raising Charitable governance
funds
activities
costs
2022
Total
Staff costs (note 71
Freelance staff costs
Pr(￿raMMe delivery costs- DLP and ILC
Research, Impact and Influencing
Reconnect London
Office and equipment
Fundraising
Recruitment
Staff support
Back office costs
Other operating expenses
Travel expenses
59,912
649,348
22,486
154,210
16,899
2,400
33,504
19,702
742,764
42,188
154,210
16,899
2,400
55,066
3,682
5,258
7,466
29,622
3,837
4,751
55,066
3,682
5,258
7,466
29,622
3,837
4,751
Sub-total
63,594
845,343
159,206
1,068,143
Alocation of support and governance eosts
13,373
145,833
159,206
Total exponditure
76,967
991,176
1,068,143
30

The Difference Education Ltd
Notes to the financial statements
For thg
ear gndod 31 Au
ust 2023
6. Net movement in funds
This is staled after charging..
2023
2022
Trustees, remuneration
Trustees, reimbursed expenses
Trustee aggregate donations
Operating lease payments
Auditors. remuneration
Stalulory audit (excluding VATI
Other services (excluding VATI
376
1,000
18,660
15,550
7,200
350
5,950
1,083
During the year 3 trustees12022". 01 were reimbursed for travel and subsistence eosts.
7. Staff costs and numbers
staff costs were as follows..
2023
2022
Salaries and wages
Social security costs
Pension costs
776,724
80,411
46,136
639,353
65,090
38,321
903,271
742,764
The key management personnel of the charitable company comprise the Trustees, Chief Executive
Officer, Programme Director, Managing Director, Director of Research, Impact & Influence and Director
of Operations & Strategy 12022.. Trustees, Chief Executive Officer, Programme Director and the
Managing Direclorl. The total employee benefits of the key management personnel were £285,323
12022.. £231,283).
2023
No.
2022
No.
Average head count
16.10
13.50
The number of employees whose remuneration for the year fell within the following bands were..
2023
No.
2022
No.
£60,000 10 £69,999
£70,000 10 £79,999
31

The Difference Education Ltd
Notes to the financial statements
For thg
ear gndod 31 Au
ust 2023
8. Taxation
The charity is exempt from corporation tax as all ils income is charitable and is applied for ch8ri18ble
purposes.
9. Debtors
2023
2022
Trade debtors
Prepayments and accrued income
31,508
36,863
37,800
28,135
68,371
65,935
10. Creditors '. amounts due within 1 year
2023
2022
Trade creditors
Accruals
Other taxation and social security
Deferred income (see note 111
15,872
39,202
30,228
21,801
5,070
28,713
20,952
81,000
107,103
135,735
11. Deferred income
2023
2022
At 1 September 2022
Deferred during the year
Released during the year
81,000
21,801
81,000
39,000
81,000
39,000
At 31 August 2023
21,801
81,000
Deferred income relates lo fees re￿iVed for the Inclusive Leadership Programme, The Difference
Leadership Programme and the IncludED conference in respect of the academic year commencing
September 2023.
32

The Difference Education Ltd
Notes to the financial statements
For thg
ear gndod 31 Au
ust 2023
12. Analysis of net assets between funds
Restricted
funds
Designated
funds
Gener81
funds
Total
funds
Current assets
Current liabilities
247,568
1,610
699,343
678,772
105,493
1.625.683
107,103
Net assets at 31 August 2023
245.958
699.343
573,279
1.518.580
Prlor perlod comparatlve
Restricted
funds
Designated
funds
General
funds
Total
funds
Current assets
Current liabilities
246,677
7,000
777,153
425,185
128,735
1,449,015
135,735
Nel assets al 31 August 2022
239,677
777,153
296,450
1,313,280
33

The Difference Education Ltd
Notes to the financial statements
Forthe
ear ended 31 Au
u$t 2023
13. Movements in funds
A11
September
2022
Transfers
between At 31 August
funds
2023
Income
Expenditure
Restricted funds
Bridges Impact Foundation
Fidelity UK Foundation
Garfield Weston
Mission 44
Reconnect London
Wates Family Enterprise Trust
40,000
94,375
75.000
120,390
19,8351
198,2251
195,0341
1120,3901
30,165
72,800
42,466
76,650
62,500
25,527
75,000
25,527
75,000
100,000
100,000
Total restricted funds
239,677
429,765
423,484
245,958
Unrestricted funds
Designated funds..
Programme Delivery
777,153
77,810
699,343
Total designated funds
777,153
77,810
699,343
General funds
296,450
1,075,940
799,111
573,279
Total unrestricted funds
1,073,603
1,075,940
876,921
1,272,622
Total funds
1,313,280
1,505,705
1,300,405
1.518.580
Purposes of restricted funds
Bridges Impact Foundation
The Bridges Impa¢l Foundation grant was offered to fund the expansion of The Difference Leadership
Programme, as well as the charity's strategy and impact measurement work.
Fidelity UK Foundation
The Fidelity UK Foundation grant was tsffered to fund the development of a new CRM system and scaling
the Inclusive Leadership Course.
Garfield Weston
Funding for dèlivering The Difference Leadership Programme.
Mlsslon 44
Funding for delivering The Difference Leadership Programme.
Reconnect London
The Reconnect London fund is monies received from Trusts towards the costs of a teachers, COVID
response project.
34

The Difference Education Ltd
Notes to the financial statements
Forthe
ear ended 31 Au
u$t 2023
13. Movements in funds leontinued)
Purposes of restricted funds Icontinuedl
Wates Family Enterprise Trust
The Wales Family Enterprise Trust grant was funding for work that will support The Differen￿ in
implementing a new 5 year strategy.
Purposes of designated funds
Programme delivery
Programme delivery fund holds funds for the delivery of The Difference Leadership Programme. This is
equivalent to the costs associated with delivery of The Difference Leadership Programme for the cohorts
currently on the programme.
Prior period comparative
A11
September
2021
Transfers
be￿een Al 31 August
funds
2022
Income
Expenditure
Restricted funds
Bridges Impact Foundation
Fidelity UK Foundation
Garfield Weston
Mission 44
Reconnect London
Talbol Village Trust
Wates Family Enterprise Trust
30,000
95,500
75,000
28,100
130,0001
118,8501
112,5001
128, 1001
12,4001
110,0001
25,000
76,650
62,500
27,927
25,527
10,000
100,000
75,000
Total restricted funds
27,927
338,600
126,850
239,677
Unrestricted funds
Designated funds..
Programme delivery
846,900
69,747
777,153
Total designated funds
846,900
69,747
777,153
General funds
379,983
788,013
941,293
69,747
296,450
Total unrestricted funds
1,226,883
788,013
941,293
1,073,603
Total funds
1,254,810
1,126,613
1,068,143
1,313,280
35

The Difference Education Ltd
Notes to the financial statements
Forthe
ear ended 31 Au
u$t 2023
14. Operating lease commitments
The charity had operating leases al the year end with total future minimum lease payments as follows..
2023
2022
Amount falling due..
Wi'thin 1 year
Within 1 5 years
6,220
7,775
6,220
7,775
15. Conduit funding
2023
2022
Balan￿ at start of year
Funding received during year
Funding distributed during year
Retained as administration fee
15,000
113,5001
1,500
Conduit funds are monies received for third parties and do not belong to the charity. The charity passes
them through the accounts as a Servi￿ lo other charities to help the charitable purposes, bul does not
claim Gift Aid nor has control over their use. The reTripts and payments referred to above have been
excluded from the Statement of Financial Activities. Conduit funding was held on behalf of The Re-
engagement Project.
16. Related party transactions
There were no related party transactions in the current or prior period.
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