The school leadership charity getting students back into the classroom. THE DIFFERENCE EDUCATION LTD ANNUAL REPORT AND AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025 Charity Registration No. 11848431 Company Registration No. 11426427 {England and Wales) Trustees, Annual Report for the Year Ended 31 August 2025 The trustees present their report and financial statements for the year ended 31 August 2025. Administrative Details T￿￿tee8 C Megson M Bayim-Adomako J Benamor (resigned 16 March 2026} {resigned 4 March 2025) {appointed 6 October 20251 (resigned 16 March 2026> G Di'lasio C Heald J Hutchinson R Shah (appointed 4 March 20251 {appointed 6 October 20251 N Sithole D Whitaker D Xiberras (resigned 4 March 2025) Key Management Personnel Kiran Gill Lily Bissett Shaun Brown {appointed 5 June 2025) {resigned 14 February 20251 {appointed 25 April 2025, resigned 6 March 20261 Jennifer Graham Eleanor Harris Jamie Rogers Charity Number Company Number 1184843 11426427 Registered Office 121 Roman Road London E2 OQN Auditor Godfrey Wilson Limited Chartered Accountants and Statutory Auditors 5th Floor Mariner House 62 Prince Street Bristol BSI 4QD Purpose Our Purpo£p The Difference exists to tackle the lost learning crisis. We do this by raising national expertise in whole-school inclusion through three levers- People, Practice and Policy. Our 2030 vision is to see lost learning rates falling nationally. The Problem Today in England, there is an epidemic of lost learning. The number of children losing learning through suspensions, exclusions and absence is rising alanningly. Last year, 34 million days of learning were lost- a 79% rise in just 5 years. Disproportionately these children are England's most vulnerable learners. These are the children who need school the most.. children living in poverty. children with threats to their safety. children with neurodiversity and special educational needs; children with mental health needs. and hildren experiencing discrimination. Lost learning has disastrous consequences for children, their communities, our society and also our economy. Children losing learning are: not passing key GCSES in English and maths, needed to work or study post-16,' more likely lo bc not in employment, education or training. likely to have long-tenn health challenges, and in receipt of health-related benefits,. and more likely to be cautioned, incarcerated and be repeat offenders. This aeute soeial immobility is not just uftjust but eeonomieally unsustainable. For last year's permanently excluded population alone, the Exchequer will lose £1.9bn. Aims and Objectives In 2018, The Difference Co-Founders Kiran Gill and Shaun Brown left their careers in policy and teaching to tackte this challenge. The charity does this through three levers: People- Developing skills and the will of school leaders to reduce lost learning in their schools through cohort-building training programmes. Practice- Researching and publishing on scalable practice to reduce lost learning in schools. and Policy- Raising the salience of the issues of lost learnin& and bringing frontline insights to policytnakers to incentivise national chatjge. Public Benefit All of The Difference's activities are undertaken to further our charitable purpose, 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 benefit guidance published by the Charity Commission. We are satisfied that the purpose 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 purposes, by setting out our achievements during the year in this Trustees, Report. Activities People l*adership Development and Specialist TeacherTraining: We develop inclusive school leaders through intensive, evidence-infornled professional development. Since 2019 the Difference Leadership Programme has provided two years of specialist training for leaders working across Alternative Provision and mainstream settings, building deep expertise in whole-school inelusion. 2024125 marked the final year of the programme. The Difference Schools Partnership reflects a strategic shift from individual leadership development to whole-school transforniation. We work with headteachers and senior leadership teams over multiple years to embed inclusive practice and reduce lost learning at scale. Mainstream partnership via the Indusive Leadership Course: The Inclusive Leadership Course is a year-long professional developrnent eourse for mainstream senior leaders, including headteachers, deputy heads, assistant heads and inclusion leads. It combines six intensive training days with practical assignments. The course supports leaders to improve inclusion through structured learning on relational practice> peer collaboration and applied leadership assignrnents. Across all programmes, The Difference monitors leader progression, school-level change and pupil outcomes, contributing to the evidence base lor what works in reducing exclusion. Practice Re8eareh and publish best practlee: We undertake research into the best and most innovative practice that can be scaled across the sector, and publish these learnings as well as frameworks that support whole-school inclusion and that define some of the practices and systems that build inclusive schools and support vulnerable students. Community and scaling our ideas: We bring together school leaders committed to school inclusion to build a community of inclusive educators and inclusive sehoo15. Our flagship community event is the annual IncludEd Conference bringing together teaehers, school leaders, researchers? policymakers and young pcople to learn, share and Connect. Policy Influencing Policy. We engage directly with change-makers at a national level. hosting meetings, school visits, and round tables with ministers and the third sector, to convene change makers from across the political SPect￿M and connect the dots between105t learning and mental health, special educational needs, safeguarding and criminal exploitation. Raising the salience of10st learning and inclusion: We keep lost learning in the spotlight, working with journalists to ensure national coverage of children out of the classroom and to raise the salience of 'lost learning, framing. Strategy- The Difference's 2030 pledges The Difference has a bold Fision. To see rates of lost learning falling by 2030. In our next five years, The Difference want5 to impact schoo15 nationally. People We will prove whole-school inclusion reduces lost learning though our programmes, The Difference Schools Partnership and Inclusive Leadership Course. At least 7596 of school leaders we work with will improve outcomes for vulnerdble students. 2,000 school leaders will partner on our programmes who collectively will reach 750,000 students. Practice We will research best practice and convene learning communities around the biggest challenges in.%chool inclu.8ion. Four keystone publications will gain national traction. Over 20,000 practitioners, teachers and school leaders will engage with our publications, tools and frameworks. Policy We will build consensus on the incentives for school inclusion. 20 Local Authorities & Multi-Academy Trusts will ehange how they measure inclusion. This change will evidence and support our call for national incentive change which is needed to see lost learning fall nationally. .Wllll:,IW, Iw Achievements and Performance This annual report covers the financial year 2024125 in terms of activities, achievements, finarjcial review, risks and uncertainties, structuretr governance and management. 2024125 has seen The Difference's work expand, scale, and reach more school leaders and students than ever before. People 2024125 Pilot year of The Difference Schools Par¢nershAP Piloted in 2024125, this multi-year programme supports headteachers and senior leadership tearns to lead whole-school inclusion. The partnership focuses on strengthening internal alternative provision reducing suspensions and repeat classroom removals and embedding inclusive systems across the school that improve pupil outcomes. partnered with 11 schools trained 21 school leaders ••• reached 6,800 students The Differenee Schools Partnership exceeded our pilot year I target, with 90% of schools improving attendance or suspension rates. In summer 2025 we evaluated the pilot to develop the new Difference Schools Partnership, launching in 2025126. The Difference Ieadership Programme The fifth and final cohort of The Difference Leadership Programme graduated in summer 2025. Leaders were placed in Alternalive Provision schools for excluded pupils or internal alternative provisions within a mainstream school. In 2024125 the Difference Leadership progrdrnme: artnered wlth 16 schools trained 16 school leaders ••• reached 6,576 students 65Wo of the cohort achieved in year progression. The work of one Difference Leader brought suspensions down from 404 days to 15 days and attendance up from 58% to 7096. The Inclusive Leadership Cour8e We trained more school leaders than ever before with cohorts in Corby, Chesterfield, Newcastle, Rochdale, and two in London. In 2024125 the Inclusive Leadership Course. artnered with over 100 schools trained 195 school leaders ••• reached 95,200 students 8096 of participants on this yearfs Course reported that staff had an increased ability to de-escalate behaviour incidents in their school as a result of our trainingp 75% report improved outcomes for students and 9186 would recommend the course to colleagues. Practice 2024125 Research- This academic year we focussed our research on internal aliernatii'e rc)i'i8i()n which led to a sector-leading publication on what good provision looks like in practice and the four tenets schools can implement. The report led to a spotlight on internal alternative provision which has featured in articles in TE Community and practice slwtng- The Difference continued to grow, with over 700 attendees at IncludEd 2025 and over 4,700 people reached through 4 Bullet Friday. Building on our internal provision research, we brought together over 250 leaders committed to developing more effective provisions for an Internal Alternative Symposxum and webinar in spring 2025. Frameworks- we published three frameworks that schools and school leaders can use to build rnore inclusive schools Continuum of knst I￿arning developed out of our IPPR report WI￿ is Losing Learning.? Th£ casefor reducing excursions acr(iss mainstream schools Definition of Whole School Inclusion developed with schools, families, and the third sector Inclusion framework developed with experts frorn across the sector and published in our IPPR report, Who is Losing Learning? Finding solutions to the school engagement crisis. Policy 2024125 With a general eleetion held in July 2024 and many ehallenges in edueation reaching erisis levels, The Differenee's policy work took on new urgeney. Influencing in Partnership- We published two cornerstone reports on inclusion (Who Is Losing Learning), one on the and a second on the soLuti with our partners IPPR, Impetus and Mission 44. These reports have formed the basis of our influencing work to shift national incentives so that inclusion is more possible and more desirable for schools to achieve, and have: Made inclusion centre ground Re-framed excluded children as vulnerable Defined105t learning and inclusion for the country Placed lost learning in the wider national conversation Media- The Who Is Losing Learning reports and our work to convene education leaders and change makers frorn across the political spectrum have raised the alarm about lost learning as a social justice issue, securing press coverage in I1￿￿￿￿,&kth￿., IIX, and SLhQo￿￿. Thank you Thank you to all of our supporters and donors for the generosity and partnership you have given The Difference this year, our successes would not have been possible without you. Plans for the Future People The next phase of The Difference Schools Partnership- LaunchiTJg in 2025126 the new Difference Schools Partnership is a three-year programme to develop sector-leading inclusion. We will recruit ten schools from across the country and work with headteachers and their senior teams to build whole-school inclusion strategies and reduce lost learning. Catalysi for national change- The Difference Schools Partnership will play a critical role in creating national change. Inclusive systems and reduced lost learning in ten schools aims to create system change in ten Multi-Academy trusts or Loeal Authortties. Change across these groups of schools will provide evidence and support our eall for further changes ITJ education policy. The Inclusive Leader8 Course: a movement of inclusive leaders- The course will continue to reach new geographies in England and following successful work with cohorts brought together by local government we will continue to partner with Local Authorities who are keen to lead the way in inclusion to tackle lost learning. Practice Re8earch- Our next focus will be reducing harniful and abusive behaviour, looking at schools who have adopted this lens to improve their identification of harni and responses to reduce it. Whole-8¢hool inclusion tool- We are developing a fijrther framework to support schools- the Whole-schools Inclusion tool, which will be tested over the coming year. The tool supports schools to audit and diagnose key inclusion issues and identify potential solutions. Bringing the inclusive school8 community together-we will continue to deliver IneludEd as the conference that brings together school leaders comrnilted to building more inclusive schools, and sharing our work and praclice rnore widely though our Four Bullet Friday newsletter. Policy The Difference is working to influence education reforms via strong relationships with officials, Ministers and by building consensus across the sector. Inclusion for All- We will continue our work to influence the Department to expand its definition of inclusion to be more than just about special educational need5. The lUdll￿caMPaIgn launches in 2025126 to bring the sector together under our definition of whole-5chool inclusion. Schools white paper- The upcoming Schools White Paper is an opportunity to reset expectations for all schools to be welcoming and inclusive places. The Difference CEO is on the advisory group, attending weekIy meetings with the Minister as part of the White Paper development and making sure that the disproportionality of lost learning is not overlooked in refonns. Financial Review Financial position Our income increased (£1.58m up from £1.3m in 20231241 while our expenditure rose {£1.8m up from £1.7m in 2023124), as The Dlfference made strategic decisions to invest reserve.% with the appointment of a Deputy CEO to increase our fundraising capacity and the launch of our Who's Losing Learning problem and solution reports. We operated at a financial deficit of £0.23m in 20241251£0.37m defieit in 2023124). We ended the year with total funds of £920k, of whieh £230k were general unrestricted. Income Our total ineome through the aeademie year 2024125 was £1.58m (up from £1.3m in 20231241. The Difference's dominant source of funding is from philanthropy, with the majority of our income eoming from trusts and foundations and a small but growing group of individual donors and corporate foundations. They invest in our pioneering programmes, and in campaigning for policy change. This year voluntary income made up 70% of overall income. Thank you to all our donors who made our work possible this year. Our 2025-2030 strategy has included ambition to grow traded revenue to The Difference including school contributions lo our programmes, speaking events, and research contract work. The proportion of The Differences expenditure from school contributions has risen over the years from 1996 in 202212023 to 24% in 2024125. The Difference does not use any external professional or commercial fundraisers- all fundraising activities are conducted by our own employees. The Difference adheres to the Code of Fundraising Practice but is not currently subscribed to any schemes for fundraising regulation as we do not fundraise through any kind of community, public events or digital fundraising. The Difference fundraises predominantly through grant-making organisations and a small number of individual philanthropists known to The Difference and our board or committees. Our lack of public fundraising rnean5 we do not have any interaction with potentially vulnerable mernber5 of the public. The Difference has never received any complaints about fundraising activitie5 which we've undertaken. Expenditure The Difference's total expenditure through the academic year 2024125 wa5 £1.8tn lup from É1.7m in 20231241. As outlined in the Achievements section of this report, expendithre in the period focused on four main areas: concluding delivery of the Difference Leaders Programmes and launchivjg the pilot ol the Difference Schools Partnership) establishing the Who's Losing Learning Coalition and publishing ttFo major research reports. strengthening senior leadership capacity through the appointment of a Deputy CEO- and completing our first full year with a fully resourced fundraising team in place. As with many other charities, inflation has been a driver in rising costs year-on-year at The Difference. Reserves policy The Differences unrestricted lor'free.) reserves are the net current assets of our general land designated) unrestricted funds. We hold these funds to: provide working capital to finance our day-to-day operations", PTovide a safeguard against failure to deliver against contractual obligations we have entered into,. and protect our solvency in the event of any curtailment in our income-generating activities. It is the Difference's policy thal unreslricted funds which includes those we have 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 £411k and £822k). The trustees consider that reserves at this level would ensure that, in the event of a significant change in funding, The Difference is able to meet its obligations to programme participants, partner organisations and staff, whilst giving considcralion to ways in which additional or alternative funds may be raised. On 31st August 2025, total funds were £920k, of which £IOk were restricted, leaving free reserves of £910k1£680k deSL8naied and £230k unreslriciedl, which exceeds the larget level of free reserves. Funds in excess of free reserves will be used to help deliver our 2030 strategy. Going concern Trustees and the senior management team review spending and revenue and re-forecast accordingly) 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 tru5tee5 therefore believe that the charity is a going concern, and so have prepared the accounts and financial statements on this basis. io Risks & uncertainties Effective risk management is critical to ensuring that The Difference achieves its mission for the improved life-outcomes ofvulnerable children. All our employees are encouraged and supported to identify and manage key risks within their work, and to communicate and escalate these appropriately. Through this, responsTbility for risk is distributed across the charity. We manage our risks in line with our risk-management policyj which includes the collation and rnonitoring 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, 2025126 are: Financial sustainability and income risk There is a risk that The Difference does not secure sufficient income across ￿ndraising and traded activity to deliver its strategy, leading to pressure on reserves and constraints on delivery. This reflects multiple risks, including fundralsed income shortfalls, traded income underperformance, rising operating costs, and the risk of reserves falling below targei levels. Miligations: The Difference has strengthened financial oversight through improved forecasting, scenario planning, and regular review by the Executive Team and Board. A new fundraising team was established in 2024, alongside a clearer income diversification strategy spanning trusts and foundations, high nel worth individuals, partnerships, and traded programmes. Cost controls and reserves thresholds are monitored throughout the year, with escalation triggers in place. Schools, financial pressures affecting programme growth Reduced budgets and workforce pressures in schools and Multi-Academy Trusts may lirnit the capacity of senior leaders to engage with professional development programrnes, constraining growth and reach. Mitigations: The Difference is evolving its delivery model from individual school engagement to the Difference Schools Partnershipy working at MAT and Local Authority level. This approach enables greater reach, stronger commissioning relationships, and better value for participating schools. The 2025-2030 strategy continues to prioritise impact-per-pound and scalable delivery. li Structure, governance & management Constitution and governing documents The Differenee Education Ltd is governed by its Memorandum of Association and Artieles of Association. The Difference Education Ltd is a charitable company, limited by guarantee and not having a share capital. The Difference operates within England and WaIes capitaI (Charity number: 1184843. Company number.. 11426427). The Difference Education Ltd gained charitable status from the Charity Commission in 2019. None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £10 in the event of a winding up. Directors and Trustees The Board of Trustees meets regularly to govern the charity. During the period of reporting, it held four meetings. At its meetings in 2024125, the Trustee Board agreed the budget and updated foreeast for 2025126,. input and signed off the 2025-2030 Theory of Change and organisational strategyj reviewed The Differences financial model- managed and mitigated ongoing risk,. and approved delegation to and growth of The Difference's staff tearn. Organisational Structure and Key Personnel The appointment or election of Trustees is as deterniined 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. The Trustee5 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 life outcomes of the most vulnerable children through their work and practice; and Ensuring sound financial management of The Difference. 12 Induction and Training policy for new Trustees New Trustee5 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 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 inforniation. 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 Perforniance Management Reviews on an annual basis. These are determined by the Chair of Trustees in coordination with other trustees. Such changes May take place on the back of an evolution of role corresponding to increased responsibility. The Difference has a pay policy which states that salary increases are only granted the basis of changed responsibilities only {i.e. no perforniance related payl. These salaries are regularly benchmarked against other similar organisations in our sector. Statement of responsibilities of the trustees 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 accordance with applicable law and United Kingdom Accouniing Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applieable in the UK and Republic of Ireland (United Kingdom Generally Aeeepted Aeeounting Prnctice). 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 ol the charity and of the income and expenditure of the charity for that period. ln preparing those finaneial statements the trustees are required to.. select suitable accounting policies and then apply them consistendy) observe 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 rnaterial departure5 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 which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financiaI statements comply with the Companies Act 2006. The trustees are also 13 responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far a5 the trustees are aware: there is no relevant audit inforn]ation 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 infornjation and to establish that the auditors are aware of that inforniation. The trustees are responsible for the maintenance and integrity of the corporate and financial inforniation 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 eornpany during the year and have expressed their willingness to continue in that eapacity. The trustees, report was approved by the Board of Trustees. N Sithole Chair of Trustees Dated- 26 Mareh 2026 14 Ind¢p¢nd¢nt auditors. roport To the members of Tho Dlffgrfyn¢• Edu¢atlon Ltd Opinion Wè havè audited the financial statements of Thè Differencè Education Ltd (thè 'charityl for the ￿ar ended 31 August 2025 which comprise the statement of financi818cb"vib"es. balance sheet. statement of cash flows and the related notes lo 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 Siandards. including Financial Reporting Standard 102.. The Fin8nci81 RetK)rting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statemenis-. givg a true and fair vigw ol Ihe stale of the tharivs affairs as al 31 August 2025 and of ils incoming resource5 and application of resource5, including its income and expenditure, for the year then ended., have been property prepared in accordan¢e wth United Kingdom Generally Accepted A￿OUntIng Practice,. and . have been prepared in accordance wth the wuirements of the Companies Act 2006. Bas1$ lor oplnlon Wè conducted our audit in accordance with Inlgrnaiional Standards on Auditing IUKI IISAS IUKII and 8pplicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities lor the audil of the financial statements secb'on ol our report. We are independent of the charity in accordance with (he ethical requirements that are relevant to our audit ol the financial statements in the UK, including the FRC'S Ethi￿1 Siandard, and the provisions available for small enlilies, in the circumstances sel oul in note 6 lo the financial statements, and we have fulfilled our other ethical reswnsibililies in accordance wth these requirements. We believe that the audit evidence we have obtained is sufficient and appropriaie io provide a basis for our opinion. Conclu8lon8 r•lat5ng to go5ng concern In auditing the financial statements, we have conduded that the trustees, use of the going concem basis of accounting in ihe Preparation ol the financial slatemenls is appropriate. Based on the work we have perfom)ed. we have not identified any material un¢grtainties relating to events or conditions that, indiwoually or collectively. may cast signtficanl doubl on the charills ability lo eonlinue as a going concem for a period of al least twelve months from when the financial siatements are authorised lor issue. Our responsibilities and the responsibilities of the truslees ￿th respecl to going concern are described in the relevant sectK)ns of this rew)rt. Other infomiation The other infomiation ￿mprISeS the infomiation included in the annual report other than the financial 5ts1ements and ¢xJr 8udrtorf5 report Ihereon. The trustees are responsible for the other inform8lion. Our opinion on the financial statements does not cover the other inforwnation and, except to the exlenl otherwse explicidy staled in our report, we do Th)[ express any fomi of assuran￿ conclusion Ihereon. 15 Ind¢p¢nd¢nt auditors. roport To the members of Tho Dlffgrfyn¢• Edu¢atlon Ltd In connection with our audil of the financial statemenls. our responsibility is to read the other information and, in doing so, consider whethèr the othèr infomiation is materially inconsistent with th8 financial stslements or our knowledge obtsined in the audil or olhewse appears to b8 materially misstated. If we identify such material inconsistencies or apparent material misstatements. we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other infomialion. If. based on the wotl¢ we have performed, we conclude th81 there is a m81erial misslalement of this other infomi81ion. we are required to report Ihal fact. We have nothing lo report in this regard. Oplnlon on othor matt•rs pr•scrlb•d by th• Companiès Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the trustees. report, which includes the directors, report prepared for the purposes of company law, for the financial year lor which the financial ststements are prepared is consislenl wlh the financial slalements; an . the directors. report included within the trustees. rewt have been prepared in accordance with applicable legal requirements. Matt•r8 on which w• are required to rnport by excoption In the light of the knowledge and understanding of Ihe company and its environment obtained in the course of the audit, we have nol identified material misstatemenis in the directors, repDrt included within the Iruslees, rew)rt. We have nothing to report in respecl ol the following mallers in relation lo which the Companies Act 2006 requires us to TeFK)rt lo you if. in our opinion.. adequate a¢counling records have not been kept or retums adequate for our audit have not been received from branches not visiied by us.. or the financial stalements are nol in agreemenl wlh Ihe accounting records and retums,. or certain disclosures of trustfjes. remuneration spgcifigd by law are not madg., or we have not received 811 the inlonnalion and exp18nations we require for our audit,. or the trustees were not enliued to prepare Ihe financial stalemenls in accordance wlh the small companies regime and lake advantage of the small companies, exemptions in preparing the trustoes, roport and from the requiroment to prepare a strategic rep)rt. Re$ponslbllltle$ of tho tru$t•e$ As explained more fully in Ihe trustees. responsibilities siatemenl sel out in the trustees, report, the trustees Iwho are also the directors of the charitable company for the purrK)ses of company lawl are responsible for the preparalion of the financwl ststements and for boing satisfied that they give a Iruo and fair view. and for such internal contrd as Ihe trustees determine is necessary lo enable the preparation of financial statemenis ihat are free from malerial misstatement. whether due io fraud or error. In p￿paring the financial ststemenls. the trustees are ￿$￿nSible for assessing the charty's ability lo continue as a going Gon￿m, disclosing. as applicable, matters related to going concern and using the going concern basis of accounting unless the irustees either intend to liquidate the charity or to cease operations, or have no realistic altemative but to do so. 16 Ind¢p¢nd¢nt auditors. roport To the members of Tho Dlffgrfyn¢• Edu¢atlon Ltd Our responsibilities for the audit of the financial statements Our obj8cb.vès arè to obtain reasonablè assurancè atK)Ut whèthèr thè financial statèments as a whol8 are free from material misstslefflenl. whether due to fraud or error. and lo issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance. bul is not a guarantee that an audit conducted in accordance wth ISAS {UKI will a￿a￿S detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individLJally or in the aggregale, they could reasonably be expecle(I lo influence the economic decisions ol users taken on the basis of these financial stslements. Irregularities, including fraud, are instances of non-compliance wth laws and regulatK)ns. We design procedures in line our responsibilities. ouuined al)ove. lo dele¢¢ material misslalemenls in respect of irTegularilie5, including Iravd. The procedures we carried out and the exlenl lo which they are capable of delecling irregularities. including fraud. are detailed below.. 111 We obtained an unders¢8nding of the legal and regulalory framework that Ihe charity operates in. and assessed the risk ol non-compli8nce with applicable laws and regulations. Throughout the audit, we rernained alert lo possible indications of non-compliance. 121 Wg r8Vl8wed the Charitls policies and pr￿edureS in relation to.. Identifying. evaluating and Complwng wilh laws and regulations. and whether they were aware of any instanc85 ol non-compliance.. Detecting and responding to ihe risk of fraud. and wfiether they were aware of any actual, suspected or alleged fraud,. and Designing and implementing internal contrds lo mitigate the rlsk of non-compliance with laws and regulations, including fraud. 131 We inspected the minutes of truslee meetings. 141 We enquired about any non-routine communication with ￿VIatOrS and reviewed any reports made lo them. 151 We reviewed the financial slatement dI￿10$￿re$ and assessed iheir compliance with applicable laws and regulations. 161 We performed analyb'cal procedures lo idenlity any unusual or unexpected 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 io address this risk. Our Procedures included.. Testing the approprialeness of journal entries.. Assessing judgements and accounting estimates for potential bias.. Reviewing related party Ir8nsacb"ons.' 8n Testing transactions that are unusual or outside the normal r￿irSe of business. Because of the inherent limitalions of an audit. Ihere is a risk that we wll not detect all irregularities, including thosè léading to a material misstat8ment in Ihe financial statements or non-¢omplian¢e wth regulation. Irregularities that arise due lo fraud can be even harder to delecl than those that arise from error as they may involve deliberate concealment or cdlusion. 17 Ind¢p¢nd¢nt auditors. roport To the members of Tho Dlffgrfyn¢• Edu¢atlon Ltd A further description of our responsibililies for the audit of the financial statements is located on the Financial Reporbng Council's wÈbsit8 at= 4fftWd.fr¢.org.uklauditorsreswnsibilities. This dèscription form5 part of our auditor's report. Use of our report This report is made solety to the charity's members. as a bryjy. in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charty's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extenl pemiited by law, we do not accept or assume responsibility to anyone other than the charitys memkrs as a trxx1y. for our audit work. this report, or for the opinions we have formed. Date.. 30 March 2026 Wllllam Guy Blakè ACA {Senlor Statutory Audltor> For and on behalf ol.. GODFREY WILSON LIMITED Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS14QD 18 Tha Dlfforenca EducatSon Ltd ststoment Of flnan¢lal a¢tlvltlo$ (in¢oryx)ffjfyng an income and e%￿ndIt0￿re a¢counlJ For the arended 31 Au ust 2025 202$ Total 2024 Totsl Restricted unrestn.cted Note Incom8 from.. Donations Charitable activities Investments 301,650 49.075 700.020 1,001.670 1.001,348 486.712 535,7B7 325,712 38,858 38.858 15,851 Totsl Income 350.725 1,225.590 1576.315 1.342.911 Expenditure on.. Raising funds Charitable activities 243.077 243,077 170,950 426,566 1.137.868 1,564,434 1.539,612 Totsl eX￿ndIture 426.566 1,380,945 1,807.511 1.710,562 Net l•xp•ndlturel and net mov•m•nt In funds 6 175.8411 {155,3551 1231,1961 1367.6511 Reconclllatlon of funds: Total funds brought forward 85,685 1.065,244 1,150,929 1,518,580 Total funds carrled forward 9,889 919,733 1,150,929 All of the 8bove results are derived from continuing 8ekn'vities. There were no other recognigèd gains or losses other than Ih05e stated above. Movements in funds are disck)sed in note 14 to the accounts. 19 Th• Dlff8rence Educatlon Ltd Balance sheet Asat31Au ust 2025 2025 2024 Note Flxè(l assèts Investments 33,241 Current assets Investments Debtors Cash al bank and in hand 512,656 79,560 417,333 765,000 135,345 364,980 10 1.009,$49 1,265,325 Llabllltle8 Creditors.. amounts falling due wthin 1 year 89.816 147.637 Not Current assets 919,733 1,117,688 N•t ass•ts 13 919,733 1,1 $0,929 Funds Restricted lunds Unrestricted funds Designated funds General funds 14 8S,685 680,000 229,889 650,000 41 S,244 Total charlty fvnds 919,733 1,150,929 These accounts have been prepared in accordance th8 special provisions applicable to companies subject to the small companies, regimg. Approved by the Iruslees on 26 Mar¢h 2026 and signed on their behalf by N Silhole, Chair of Trustees 20 Th• Dlffer•n¢• Edu¢atlon Ltd statement of cash flows For thè èar ended 31 Au ust 2025 2025 2024 Ca$h us•d In optrratlng a¢tlvltl¢$: Nel movement in funds {231,1961 1367,6511 Adjustments for.. Dividends, interest and rents from investsnents Increase I Ida¢r8asel in debtors (Decrease) l increase in credrtors 138,8581 55,785 57,821 115,8511 166.9741 40.534 Not Cash usod In oyratlng actS¥itl•s 272.090 409,942 Cash flows from Investlng actlvltles.. Dividends, interest and rents from investments Cash withdrawn from fixed-temi deposils held for more than 1 year 38.858 33.241 1 S,851 33,241 Not ¢a8h provld•d by I (US￿ Inl Inv•$tlng adlvltles 72.099 17,390 D8crease In cash and cash •quSvalonts In the year {199,9911 1427,3321 Cash and cash equivalents al the beginning ol the year 1.129.980 1,557,312 Cash and Cash equlvalents atthe end ofthe ￿#r 929.989 1,129,980 Analysls of cash and cash equlvalents Cash held in currenl asset investmenls Cash at bank and in hand 512,656 417.333 76S,000 364,980 929,989 1,129,980 The charity has not provided an analysis of changes in net debt as it does nol have any long term financing arrangements. 21 Th• Dlffer•n¢• Edu¢atlon Ltd Notes to the financial statements For thè ar 8nd8d 31 Au ust 2025 Accounting policies al General information and basis of preparation The Difference Education Ltd is a charitable company limited by guarantee ￿gIStered in England and Wales. The registered office address is 121 Roman Road, London, E2 OQN. The financial statements have been prepared in accordance Accounting and Reporting by Charities". Statement ol Recommended Practice applicablè to ¢harities in preparing their accounts in 8Gcordance with the Fin8ncial Reporting Stsndard applicable in the UK and Republic of Ireland IFRS 1021 leffeclive 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 Educab"on Ltd meets the definIt￿n of a public benefit ents.ty under FRS 102. Assets and liabilities are initially recognised al historical cost or transactson value unless otherwise stated in the relevanl accounting policy note. bl Golng conc•rn basls of accountlng The accounts have been prepared on the assumption that the chanty is able lo conb'nue as a going concern, which the trustees Consider appropriate having regard to the current level of unrestricted reSe￿e$. There are no material uncertainlies at*)ut the charivs ability lo continue as a going concern. cl Incom• All income is included in the stalemenl of financial a¢tiwts8s wh8n gntiuement has passod lo the charity, il is probable that the economic benefils asstxialed with the Iransaction will flow lo the charity and the amount can be reliably measured. The following specific polKie5 are applied lo pa￿'Cular categories of income- Income from donat5ons or grants is rec(yJniset1 when Ihere is e¥Adence of enlttlemenl to the gift, receipt is probable and its amount can be measur&Y reliably. Income from the supply of services is recognised the delivery of the service. Where the grant does not impose specrfied fulure ￿[omi8n¢0-rel3Ied conditions on the recipient, il is recognised in income when the granl proceeds are received or receivable. Where the grant does impose specrfied ILblure perfornianctrrelaled conditions on the recipienl, il is re¢ognised in income only when the perfomiance-related wndits'ons have been met. Where grants received a￿ prior to satis￿'n9 the revenue reC￿nitIon criteria, they are ￿cOgnised as a liabilty. dl Donated services and facilities Incomè from donatèd goods is measureil at thg fair value of th8 goods unless this is impra¢li¢al lo measure reliably. in which case the value is deriveLI 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 wth the Charities SORP IFRS 1021, no amounts are included for the contribution of general volunteers. Th• Dlffer•n¢• Edu¢atlon Ltd Notes to the financial statements For thè ar 8nd8d 31 Au ust 2025 Accounting policies {continued} el Interest receivable Interest on funds held on deposit is included when re¢eiv8ble 8nd the amount Can be measured reliably by the chanty.. this is normalty uwn TV)tfficalion of the interest paid or payable by the bank. fj Funds accounting Unrestricted general funds are available use at the discretion of the tru51ees lo further any of the charity's purposes. Designaled funds are unreslricted funds eamiar1(ed by the truslees for a particular future project or commitment. Restricted funds are subjected to restrictiorts on their expenditure d￿lared by the donor or through the terms of an appeal. gl Exp¢ndlturo and Irr•¢OV•rab￿ VAT Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be lully recovered, and is das$rf￿0 under headings of the statement of fin8n¢ial activities lo which il relales.. Expenditure on raising funds includ85 the ￿sts of all fundraising activits'8s and events. Expenditure on charitable activ￿.e$ includes all Costs incurred by a charity in undertaking activities that further ils charitable aims lor the benefit of ils beneficiaries. including those support costs and costs relating to the govemance of the charity apportioned to charitable activitie5. Other expgndrture includes all expendilure thal is neilher related to raising funds for the charity nor part of its expendIlu￿ on ch8ritsble a¢tivib"es. All costs, including overhead support costs. are allocated to expenditure categories reflecting the uso ol the resource. Staff costs are allocated be￿n charitable ath'vities, fundraising and support based upon the prO￿lon of lime spenl on each acti￿ty. h) Allocation of support •nd goveman¢e co$ts Support costs are ihosè functions that assisl the work of Ihe charity do not directly undertake charitable aclivi11gs. Govemance costs are the ￿$ts asso¢iatgd with the govgrnan¢g arrangernenls of the charity. including the costs of complwng wtth consb"tutional and slalulory requirements and any costs associated with the strategic management of the charity's activities. These cosis have been allcKaled bets¥een cost of raising funds and expenditure on charilable activities based on the proportion of stsff cost as follows.. 2025 2024 Raising funds Charitable activities 16.5% 83.5% 9.6% .4° 23 Th• Dlffer•n¢• Edu¢atlon Ltd Notes to the financial statements For thè ar 8nd8d 31 Au ust 2025 Accounting policies {continued} i) Debtors Trade and other debtors with no staled interest rate and due wthin one year are recorded al the amount of the cash or other consNJeration expected lo be received. Prepayments are valued at the amount paid. j) Non3nisgd only when the entity be¢om8s a party to the conlra¢lual provisions ol the inslrumenl. The charitable company only has financial assets and financial liabilities of a kind that qualrfy as basic financial inslrumenls. 8asi¢ finan¢ial instruments are initially reccgnised at the amount receivable or payable including any related transaction costs. unless the arrangement conslilutes a financing tr8nsaclion, where it Is recognised al the present value of the fulure payrnenls discounted al a market rale of interest for a similar debt instrument. Current assets and current liabilrties are subsequently mgasur8d al th8 cash or other consideration expected lo be paid or receiv&1 and not di5cLxJnled. ol Pension cost5 Contributions to defined wntribution plans are rewgnised as an expense in the period in whi¢h the rel8teil service is provided. P￿paid contributions are re￿nised as an 8ssel to the extent that the prepayTnenl wll lead lo a reduction in future pa￿nents or a cash refund. 24 The Dlffer•n¢• Edu¢atlon Ltd Notes to the financial statements For thè ar 8nd8d 31 Au ust 2025 Accounting policies Icontinued} pl Accounting estimates and key judgements In the 8pplic8lion of the Ghariws accountsng policies. the trustees are required to make judgements, estimates and assumptions aLM)ul the carying values of assets and liabilities that are not readily apparent from other sources. The esbmales and underfwng assumptions are based on historical exwrience and other factors thal are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are rewewed on an ongoing basis. Revisions lo accounti'ng estimates are recognised in the in which the estimate is revised il the revision affects only that period, of in the of rewsion and fvlur8 periods rf the revision affgcls both current and future periods. There are no key sources of estimation Un￿rtaInty that have a $ignifi¢ant effect on the amounts recognised in the financial statements. Prlor ￿rIOd comparatlv¢s: stattm•nt of finan¢Sal a¢tlvStl•• 2024 Total Restricted Unrestricted In¢om• from: Donations Charitable ath'vities Investments 497,248 $04,100 1,001,348 325,712 325,712 15,851 15,851 Total Income 497,248 845,663 1.342,911 Exp•ndltur8 on: Raising funds Charit8ble 8ctivilies 170,950 882,091 170,950 1.539.612 657.521 Total oxp•ndlturn 657.521 1.053,041 1.710,562 Net lexpendlturel and net movement in funds 160,273 207.378 367,651 25 The Dlffer•n¢• Edu¢atlon Ltd Notes to the financial statements For thè ar 8nd8d 31 Au ust 2025 Income from donations 2025 Total Restricted Unrestricted Donations Trusts and foundations 16,020 684,000 16,020 985,650 301.650 Total income from donations 301.650 700,020 1,001,670 Prlor p•rlod comparatlv•: 2024 Total Restn"cted Unrestricted Oonalions Trusts 8n(J foundations 58,500 445,600 58,500 942,848 497.248 Total Incomo from donatlons 497,248 504, 100 1.001,348 Incomo from charitable actlvltlos 2025 Total Restricted Unre51ricted Inclusive Leadership Course Other Programmes Income Consutt8ncy and research Grants 287,500 72,578 SS,286 71,348 287,500 72,578 55,286 120,423 49,075 Total Incomo from charltable actlvltlos 49,075 486,712 535,787 Prfor ￿rIOd comparatlv•: 2024 Total Restricted Unrestricted Inclusive Leadership Course The Differen￿ Leadership PrvJramme Consuttancy and research 245,478 70,439 9,795 245,478 70,439 9,795 Total income from ¢harltable a¢tfvltle$ 325,712 325,712 The Dlffer•n¢• Edu¢atlon Ltd Notes to the financial statements For thè ar 8nd8d 31 Au ust 2025 Total expenditure Support and Raising Charitable governance funds activities ¢osts 2025 Total Stsff costs Inote 7) Programme delivery ¢osls- School Partnerships and ILC Policy and Evidence Office and equipment Freelance staff costs Recruilmenl 8ack office costs staff support Other operating expenses Travel expenses Fundraising 178,343 9)4.068 212,862 1,295.273 169.663 120.754 169,663 120,754 88,036 70.097 18,748 16,133 14,800 8,014 5,490 503 88,036 29,698 18,748 16,133 14,800 8,014 988 40.399 4.502 $03 Sub-total 178,846 1,239,386 389,279 1,807,511 Allocation ol supkY)rt an(i govemance costs 64,231 325,048 389.279 Total •xpendlture 243,077 1.564,434 1,807,511 Total governance costs were £9,922 {2024.' £11,131). Prfor perlod comparatlve Support and Raising Charitable governance fvnds activities costs 2024 Total staff costs (note 7) Freelance staff costs Programme delivery costs- School Partnerships and ILC Policy and eV￿ence Office and equipment Recruitment Travel expense5 Back office costs Siaff suprrt)rt Other operating expenses Fundraising 81.324 39.982 770.018 9.469 268,734 1,120,076 84,809 134,260 190.345 89.592 190,345 89,S92 88,534 34.617 18,583 17,427 16,256 445 427 88,534 34,617 1,858 17,427 16,256 445 16,725 427 Sub-total 121.733 1.076,149 512,680 1,710,562 Allocation of supwrt an(1 goveman¢e costs 49.217 463.463 512.680 Total expenditure 170,950 1,539.612 1.710,562 The Dlff•renca Educatlon Lld Notes to the financial statements For the ear ended 31 Au ust 2025 6. N•t movement in lund$ This is stated after charging l {CTedrtingl'. 2025 2024 Trustees. remuneration Trustees. reimbursed expenses Trustee aggreg81e unreslricled donabons Operating lease payinents Auditors, remuneration (excluding VATI: Stalulory audit 257 12,0001 18.660 Is,0001 10.575 8.000 7,600 During the year 9 trustses {2024.' 31 were reimbursed for board meeting, travel and subsistence gXP9nses. In common with other charities of our srLe and nature we use our auditors lo assist with the preparation of the financial statements, and submission of cLJrporabon tax returns to the tax authorib'es. 7, Stsff costs and numbgrs Staff costs were as follows.. 2025 2024 Sa18ries and wages Social security costs Pension costs 1,119.193 114,491 61,589 958.831 105,763 55,482 1,295,273 1,120,076 Included in salaries and wages are redundancy and terMIna￿n costs tolalling £15.320. Rodundancy and temiinats'on costs have been ftjnded from unrestricted gener81 funds. The key management personnel ol the charitable company comprise the Trustees, the Chief Executive Off1cer, the Oepuly Chief Executive Officer. the Direclor ol People, Finance & Operations, the Director of Programmes. the Dirgctor ol Policy & Evidencg and the Director ol Rgsearch. Impaot & Influgncing. The lolal employee benefits of the key management personnel were £461,51512024.. £396,142). 28 The Dlff•renca Educatlon Lld Notes to the financial statements For the ear ended 31 Au ust 2025 7. Stsff ¢osts and numbers {¢ontinu¢d) 2025 No. 2024 Average head count 21.30 19.30 The number of employees whose remuneration for the year was greater than £60,000 was.. 2025 No. 2024 No. £60,000 10 £69.999 £70,000 to £79.999 £80.000 10 £99.999 O. Taxatlon The charity is exernpl from corporab'on tax as all its income is charitable and 15 applied for charitable purposes. 9, Flxed and ¢urr•nt asset In¥￿tments 2025 2024 Th8 charity holds inv8stmenls compnsir4J'. Fixed-lerm deposits held IOT more than 1 Notice and fixed-term deposits held lor up to 1 yEar 33.241 765.000 512,6 512,6S6 798,241 10. Dobtors 2025 2024 Trade debtors Prepayments and accrued income 41,224 38.336 127.807 7,538 79.$60 135,345 29 The Dlff•renca Educatlon Lld Notes to the financial statements For the ear ended 31 Au ust 2025 11. Creditors = amounts du¢ within 1 year 2025 2024 Trade ¢rodrtors Ac￿Ual5 Other taxation and social security Deferred income (see note 121 526 38,949 31,783 18,$58 221 35,931 1,885 109.600 89.816 147.637 12. D•f¢Tred In¢om• 2025 2024 Al 1 September 2024 Deferred during the year Released during the year 109,600 18,558 109,600 21.801 109.600 21,801 Al 31 August 2025 18,S58 109.600 Deferred income relates lo fees received for the Inclusive Leadership Courses. the Difference Schools Partnership fees, and IncludEd conference income. 13. Analys1$ of not ass•ts b•tw£•n funds Restricted funds Designated funds General funds Total funds Current assets Current liabilf(ies 680.000 319,705 89,816 1,009,549 89,816 Net assets at 31 August 2025 680,000 229,889 919,733 Prlor pgrlod comparatlv• Reslricled DeS￿nated fund5 funds General funds Total funds Fixed assets Current assets Current liabilf(ies 33,241 529,640 147.637 33,241 1,265.325 147,637 85,685 650.000 Nel assets at 31 August 2024 85.685 650.000 415,244 1.150.929 30 The Dlff•renca Educatlon Ltd Notes to the financial statements For the ear ended 31 Au ust 2025 14. Movtm¢nts in funds At1 September 2024 Transfers between At 31 August funds 2025 Incorne Expendiiure Restricted funds A & O Shearman Dulverton Trust Fidtrlrty UK Founllabon Garfield Weston Grace Trust Kusuma Mission 44 The Wales Family Trust 20,(KKI 35,1 49.075 120.000} 135,0001 156.5141 168.2751 18.0001 150.1271 1128.6501 60.000 17.283 68.275 127 S0,(KK) 128,650 60.000 Total r•slrl¢l•d funds 85.685 350.725 426.566 Unrestrlcted funds Designaled funds.. Programme D81ivery 650.000 345.959 375,959 680 000 Total desi9na18d funds 650.1)00 345.959 375,959 680,000 General funds 415.244 1.225,5￿ 1,034.986 375,959 229,889 Total unre$trided funds 1.065.244 1,225,$ 1,380.945 909,889 Total funds 1.150.929 1.576.31 S 1,807.511 919,733 Purposes of restrfcled funds A & O Shoarman Funding for delivering the Who's Losing Leaming? Coalilion. Dulverton Trust The Oulverton Trust grant was offered lo lund the SCh￿Is Partnership Programme outs￿e of London. Fldellty UK Foundatlon The Fidelty UK Foundation grant was offered to fijnd Ihe development of a new CRM system and scaling the Inclusive Leadership Course. Garflold Weston Funding for delivering The Dtflerence Leadership Pr￿ramme. 31 The Dlff•renca Educatlon Lld Notes to the financial statements For the ear ended 31 Au ust 2025 14. Movtm¢nts in funds l¢ontinu¢d) Purposes of restricted funds Icontinuedl Grace Trust Funding for delivering The Difference Leadership Programme. Kusuma Funding for delivering the Who's Losing Leaming? Coalition. Mlsslon 44 Funding for delivering Th8 Difference Leadership Prt¥Jramm8. Wates Family Trust Funding for dglivering lrfe opwrtunities for pewle. Purposos of doslgnatod funds Programme dellvery Programme delivery fund holds funds for the deliv9ry of The Drfferen¢e Schools Partnership. This 1$ gquivalenl lo the budgelgd direct and staff costs associated with delivery of the The Difference Schools Partnership for the cohort w8 are curr8nUy recruiting for. lor 8 thr88 year programme starts'ng summer 2026. 32 The Dlff•renco Educatlon Ltd Notes to the financial statements For the ear ended 31 Au ust 2025 14. Movtm¢nts in funds l¢ontinu¢d) Prior period comparative At1 September 2023 Transfers between At 31 August funds 2024 Incorne Expendiiure Restricted funds A & O Shearman Anonymous Donor Bridges Imp8¢1 Foundation Esmee Fairbairn Fidelity UK Foundation Garfièld Weston IM￿lUS Kusuma Mission 44 Reconnect London Wales Family Enterprise Twsl 20,(KKI 10,¢ 30.th 60,L 120.000} 110,0001 160.1651 160.0001 155.5171 149.1911 150.0001 124.8731 1152.775} 30.165 72.800 42.466 17,283 68.275 75, 50,th 25.(MJ) 152,775 125.5271 100,0 127 25.527 75,000 175,000 Total restrlcted funds 245.958 497.248 657.521 85,685 Vnre$trf¢t¢d lund$ Designated funds.. Programme delivery 699,343 49,343 650,000 Total designated fvnds 699.343 49,343 650,000 General funds 573,279 845.663 1,053,041 49,343 415,244 Total unrnstrlet•d funds 1,272,622 1,053,041 1,065,244 Total funds 1,518,580 1.342,911 1,710,562 1,150,929 15. Operating lease commitfflents The charity had operating leases al the year end wth total future rninimum lease payrnenls as follows.. 2025 2024 Amount falling due.. Within 1 year 4,230 6,220 4,230 6,220 16. Related party transactions There were no related party Iransaclions in the current OT prior peri￿J other than Iruslee donations as disclosed in note 6.