Charity number.. 1193244 KITE COLLEGE Trustees, Report and Financial Statements For the Year Ended 31 August 2025 K￿E COLLEGE Contents Page R8fer8nc8 and Admlnlstratlve Details ol th• Charity. Its Trnstees and Advisers Trustees. Report Trust¢￿. R•$pon$ibllltl¢$ Ststtrmont Ind8p8nd8nt Audltors. Raport on thè Financlal Statèments Statement of Financial Activities 10-13 14 Balan¢• Sh¢tt 15 Stat•mont of Cash Flows 16 Notes to the Financial Statements 17-35 K￿E COLLEGE Ref¢ren¢e and Admlnistrative Detall$ of the Charity. its Trusts¢$ and Advl$ers For th• Yèar End￿ 31 August 2025 Trustee$ Bob Law. Chair Josephine Campbell Iresigned 15 July 20251 John Saville Bentley Simon Bounds (resigned 4 December 20241 Nikki Clark Timothy O'connor Stephanie Baiardo Rose Bradley Pam Jones Neil Paul Iresigned 31 December 20241 Emma Harvey Joanne Olagbowa Nicola Petri Emma Gray lappoinled 4 December 2024} Neil Rees-oavies lappxjinted 9 October 20241 Charlty r8glst•r•d numb8r 1193244 PrlncSpal offlc• Unil 18onham Drive Eurolink Business Park Sittingboume Kent ME103RY Senlor Managemont Tèam S. Miller- Principal H. Cardy- College Busirbess Manager A. Websper- Deputy Head S. Cumming- Deputy Head S. Murphy- 08puty Head Indopond•nt audltor8 Xeinadin Audit Limited Chartered Accountants Slatulory Auditor 12 Conqueror Court Sittingboume Kent ME10 5BH Page 1 K￿E COLLEGE Tw$tee$' R¢p¢rt For th• Yèar End￿ 31 August 2025 The Trustees present their annual report together with the financial statements and auditorfs report of the charitable company for the year 1 September 2024 to 31 August 2025. The Annual Report serves the purpK)ses of both a Trustees, Report and a Directors, Rewrt under company law. Objectives and activitles a. Pollcle$ and ¢bJ•ctlv•$ KITE College is an independent specialist Post-16 provision offering vocational pathways for young people in Kent who hold Educab"on. Heaf(h and Care Plans. Since opening in September 2021, the College has become a haven lor learners with a wide range of barriers to leaming, particularfy those with Social, Emotional and Mental Health needs. Many of our leamers arrive having struggled in mainstream seitings-some carrying the weight of emotional school-based anxiety, some out ol education altogether. At KITE, they rediscover what leaming can feel like when an environment bend5 toward their strengths rather than their difficulties. Our ethos is inclusive, calm and responsive.. 8 spa¢è where leamers are supported lo re-engage, rebuild confidence, and move toward Sndependence. Personal Developmgnt sils at the heart of our offer. It threads through every vocaknonal wurs8 and is also taught discretely, shaping the rhythm of daily life and helpiro Students cultivate resilience. $elf-awareness, and the social skills they need to thrive beyond education. KITE College Board of Trustees are dedicale(l in their support & commitment lo KITE College 8n¢J Its mission. We are ensuring the college continues lo provide a nurturing environment where learners can flourish and reach th9ir full potènts'al. W9 wll wnlinug lo support the ¢ollè98'$ grovAh, fostering its uniquè approach to edLJC2tion, and advocating for the needs of our learners. Together. we are passionate about ernpowering young people to overcome their challenges and build a brighter fulure. KITE College aim to be Kent's leading indepgndent specialisl education and training provision for Post 16 learners with SEND. who Wd an EHCP. b. Stratègl¢8 for achlevlng oblèctlves To expand specialist provision across Kent, strengthening the local offer. To welcome leamers from other local aulhorities through stalulory con5ultalion. {A5 KITE is not Section 41 approved. local authorities can name the college only with mutual agreefflenll. Page 2 K￿E COLLEGE Try$tee$' Report l¢ontlnuedl For th• Yèar End￿ 31 August 2025 Objectives and activities Icontinuedl . Activitie5 undertaken to achieve objectives To improve life chances and OP￿rtUnitieS to all srjung people wilh learning drfficults'es and SEMH needs through ambitious and inspirational. lrfelong leaming and skills programmes. These include vocab'onal training in= Construction. Motor Vehicle Technology, Hair and Beauty Employability & Life Skills Hospltality Additionally formal qu81ificalions in Maths and English induding GCSES. The College, is leased from Kent County Council and 1$ located on the Euro Link Industrial Estate in Sittingboume, opened on 1st September 2021. Our Valut¥ Kindness Integrity Tolerance Excellence d. Maln actlvltl•8 undertaken to further tho Charlty's purposes for the publlc b•neftt The college provides a range ol lull ￿'rne vocational training opportunities a5 well as Maths and English for ils students, lunded by the public purse. aimed ultimaiely at them being ready and able to enter the world of work and become a productive member of the community. Achl•v•ment8 and p8rfomiance a. Maln a¢hlevements ¢1 the Charlty During the academic year, the college SUpp￿d some 126 students. 112 were from Kent with 13 from Medway and 1 from another l(Kal aulhorily. Page 3 K￿E COLLEGE Try$tee$' Report l¢ontlnuedl For th• Yèar End￿ 31 August 2025 Achievements and perfomiance {continued b. Key performance indicators 1. Financial The college is operab'ng within planned financial parameters. The year end position is reported as £772,637, with a year end surplus of £293,833. Cash Days in Hand remain stable at 104 {2024.. 1111. in¢Jic8ting suffi(ienl short temi liquldlty. Calculation.. Cash Days in Hand = Cash Available * Oaily Operatsng Cost Cash available = cash at bank Daily operating cost = annual expenditure 4 365 'Seclor Reference Points.." - 3HO days.. healthy - 20-30 days.. adequat8 <20 days.. emerging liquidity risk <10 da￿.. significant concern Staff Costs as OA of Income: Staff costs represent 620/0 of income12024: 75%). This is below the M)ical sector range for gpeclallsl post-16 provision (generally 7MOQ/ol. The lower proportion in the current year primarily reflects increased income levels, rather than a reduction in staffing capacily. The organisation continues to prioritisè high-quality specialist provision, and staffing levels remain aligned service delivery needs. Trustees will continue lo monitor this ratio to ensure il remains appropriate as activity levels and lunding streams evolve. Flnan¢lal Htalth Ratlng: The DE financial health score 'sal1sfacto￿ Is uJnslslent with expectalions and reflects approprfate financlal controls and oversight. Summary: Finanaal management processes are operating effectively. External cost pressures and funding constraints remain areas requiring continued moniioring through scenario planning and curriculum linked financial modelling. 2. Curri¢ulum & L•¥m•rs Laam•r Numb•rs'. Leamer Numbers have increased from 12 leamers in 2021 to 126 leamers in the current year. For the Seplember 2026 intake. the o)Ilege has received over 400 local authority referrals for approximately 60 8vailable places. demonstrating a level of dewnand that 5ignificanlty exceeds capacity. The majority of referrals originate from Kent, wth around 10010 from Medway and a small proportion from other Greater London aulhorilies, refle¢ting both strong wional need and the widening geographical rea¢h of the College's provision. This sustained pressure is driven not only by the college's strong reputation for high quality specialist edLJCAtion, but also by the limited availability of suitable Post 16 specialist pathways across the region. Pathway Demand.. Motor Vehicle.. Oversubscribed Construction." Oversubscribed Hair & Beauty." Oversubscribe(J IT.. Increasing demand reflected in referral pattems Hospitalily.. Growing department following launch in Sept 2025 LMI Alignment.. Local labour market intelligence indicate5 sustsined demand for technic81. construction, digital and service sèctor skills. Curriculum planning for 2025126 is being aligned to Ihese trends to ensure capacity, staffing and resources match projected learner demand. Page 4 K￿E COLLEGE T￿$t¢¢$' Report l¢ontlnuedl For th• Yèar End￿ 31 August 2025 Achievements and perfomiance {continued Retention & Achievement- Rétèntion rates remain strong. supportèd by ￿CtIVÈ e3￿Y intervention procèsses. National post 16 achievement rates for study programmes remain broadly stable at approximately 84-860/0. Achievement in post 16 English and maths continues to be lower nationally. with GCSE resit pass rates around 1 >25%. KITE QAR data is in line National outcomes. Attendan¢o- Attendance remains broadly stable and continues to sit dose to the aspirational expectations lor speryalist post 16 provision. Figurès reflect the complex health, therapeutic and transport challengès of a typical of a high needs cohort, overall pattems remain in line wth national benchmarks for specialist colleges. Monitoring processes. pastoral interventions. and incentive strategies are conlribub'ng lo incrementsl improvement. Summary: CLJrriculum andlgamer p9rforman¢e indicalors demonsiTrlg positivg Irends. Thg relationship between curriculum viability, recruitment patterns, and financial sustainability is being nTh)nitored appropriately. 3. Gov•rnance & Compllance Regulatory Compliancè: All slalulory returns, including ILR submissions, DIE finandal relums, saleguardlng compllance reportlng, and SEND related local authority obligations. have been completed in line wilh required deadlines. Safoguardlng & W8llb•lng: Safeguarding training compliance remains high arKI a college priority. Case volumes are consislenl with sector norm5. Processes were exlemally validated through an Inde￿r￿leftt safeguarding review (Kent ESS, January 20241. Summary: Governance and compliance arrangements are robust. Risk based deds￿n making is embedded and supports organisational resilience. 4. Overall Assurance Summary Perform8nce across financial. curriculumlleamer, and govemance indicators is strong. The college demonslrales gffe¢tive conlrol environments a￿1 stable Operati￿31 perfomiancg. c. Review of activities The Prinapal reports on a regular basis on Ihe aCtiV￿eS and operation of Iho college and adjusts the offers available annually to the students based u￿n the demandslrequests of the students and their families. d. Factors relev¥nt to ¥¢hieve objectives The college ensures they have emplo￿ the necessary quality staffing to teach and support the students and monitor this regularfy. e. Fundralslng actlvltlos and Income gonoratlon No fundraising activities other than an ¢xca5ional grant bid. Page 5 K￿E COLLEGE TN$tee$' Report l¢ontlnuedl For th• Yèar End￿ 31 August 2025 Financial review a. Golng ¢¢n¢¢m After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this rea50n, they continue lo adopt thg going concern basis in preparing the finan¢ial statements. Further detsils regarding the adoption of the going concern basis ¢an be found in the ac¢ounting policies. b. Reserves policy The Trustees have added lo their reserve policy that there should be sufficient reserves to cover at least two month's running costs. The level of reserves held at Ihe year end was £772.637 12024.. £478,804), which exceeds the policy of two month's running costs of £359,98512024.. £282.542I. c. R•vlow The College's funds carTied forward 81 the year end lots1 £772.637. The Trustees have reviewed the reserves position and consider this level lo be 8ppropriale and prudent for the College's ¢urr&nl and future needs. In reaching this view, the Trustees have taken into acwunl the College's operational requirements, anticipated commitments, and th8 financial risks to which ihe Coll¢g& is exposed. The reserves provide sufficient working capital to support day to day activities, ensure resilience against unforeseen events, and enable the College to continue delivering its chantsble objectives sustainably. In year funds received are used lo support the conlinved delivery ol high quality sp&cialisl educ4lion. This Sncludes staffing, Iherapeulic and clinical support, curriculum ￿SourCes, and the infraslruclure required lo meet Ihg needs ol sludenls with Education, Health and ca￿ Plans IEHCPSI. The funding also enables the College lo respond effectively to mid year admission$ and •nsur8s that all 18amers r8c•iv8 Ihè p8rsonalis8d support necessary for posilive outcomes. Thè Collège is funded though the DIE funding agreement. as well as High Needs Funding recèivèd dirèctly from KCC SEN. Individual Funding Arrangements IIFAS) a small number of Other Local Aulhorilies, a￿ in place, for non-Kenl young people al the College. d. Prlnclpal rlsks and uncertainties The coll8gè whilst bèing publicly funded and suprx)rting a cat8gory of stud8nts wh8rè to numb8rs continu8 to risg locally is always at risk ol (he funding being reduced or not keeping pace wth inflats'on and the funders reducing the number ol students they are prepared lo supporl. •. Flnan¢ial risk management obJ¢¢tlv*s and poli¢les No policy is currently in place, bul a Risk Register is due lo be developed shortly. On an on4Joing basis the risks are considered at each meeting of the SFP when il reviews the management accounts Structura, gov8rnancg and manag•m8nt a. Constitution KITE College was registered the Charity Commission on 26th January 2021 as a Charitable Inccrporaled Organisation ICIOI with a board of trustees consisting of 8 members. b. Methods of appolntm8nt or alectlon of Trustees Trustees are appointed to KITE College primarily base(l on their skills, experience. expertise, and qualifications. Page 6 K￿E COLLEGE Try$tee$' Report l¢ontlnuedl For th• Yèar End￿ 31 August 2025 Structure, governance and management {continued) Organisational Structure and decisionrymaking policies The Trust has one full Committee suppcwied by 2 permanent sub committees: Staffing, Finance and Premises {SFPI Learning and Inclusion ILII And a Pay Committee is appoinle(I when rheeded ¢Juring the year. Day to day operational and financial decisions are delegaled lo the Principal but the approved Finance Policy sets out when and where approval is needed from either the SFP or the Board. d. Pollclos adopt¢d for the Inductlon and tralnlng of Trust¢e$ Trustees are appointed to KITE College primarily based on their skills, experience. expertise, and qualifications. Skllls and Expertise: Trusl88s are appointed base(l on their specific skills and exportise that align with the needs of KITE College. For example. finance. business, HR. health and safety, Soclal Sèrvic8s, health & wellbeing, psycholo9y, education and quality control inspection. Experience.. Trustees bring valuable experience from their professional or personal backgrounds that can benefit KITE College. This could include experiencE in leadership roles. strategic planning. fundraising. or communily eroagemenl. Qualilicatlon8.' Truslees may have S￿¢IT￿ qu81ific8tions that make them well-suiled lor their roles. These could include educational degrees, professional ceitificalions, or relevant training In argas such as governance. law, or mana9ement. Dlv•rsSty: Diversity among trustees is crucial lo ensuring a well-rounded and inclusive governing body. Trustees from diverse backgrounds bring different perspectives, ideas, and approaches to problem-solving, which can enrich the deas￿n-Maklng process and better represent the interests ol the organization's stakeholders. Skllls-gap anatysis is undert8ken on 8 regular basis. When gaps are identified suitable praclilloners are sort, approached and proposed by currgnl trust membgrs andlor the principal and if sg¢onded, then Cvs and Bios are shared with all sitting trustees and voted on at full Iwstge meetings. All Trustees receive a planned induction which is supplemented by external providers as necessary. New Iru51ees are provided with a copy ol"GUIOANCE The essentsal twslee= what you need lo know, what you need lo do., made aware of the instrument of govem8nce for KITE-College and reminded that all Iruslees are required to follow the No18n principles (conduct in public office). e. Pay policy for key management personnel Al key management posts have a set grade aNJ are incxeased annually after a review by the appointed Pay Committee and agreed by the Board of Truslees. f. Rel¥ted ￿rtY relationships The Trustees are drawn from a variety of organisations that support or have an interest in the W of student that the college supports. The Chair of Truslegs also holds positi￿$ al two other Charibes where the￿ were financial Iransa¢lion$ during the year. Page 7 K￿E COLLEGE Try$tee$' Report l¢ontlnuedl For th• Yèar End￿ 31 August 2025 Structure, governance and management {continued) g. Financial risk management The Trustees have assessed the major risks to which Ihe Charity is exposed, in particular those related to the operations and finances of the Charity, and are satisfied that systems and procedures are in place lo miligale exposure lo the major risks. Plans for future periods The college is filling a gap in the support that is available lo its students as is eViLlent in the growng number of applications lor places al the college that h8s nK>re than doubled in the last ye8r. Looking fotward, the Trustees plan to Inc￿aSe the numbers they can accommodate in Sittingboum8 whilst expanding its operation to other locations across the county. Dlsclosure of Infomiatlon to audltorn Each of the persons who are Trustees al the lime when this Trustees. Report is approved has confirmed that.. so far as that Trustee is aware, there is no Televanl audit information of which the charitys auditors are unaware, and that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit infomalion and lo establish that the charitys auditors are aware ol th81 information. Audltors The auditors, Xeinadin Audit Limited. have indicated Iheir willingness lo continue in office. The designated Trustees will propose a motion reappointing the auditors al a meeting of the Trustees. Approved by or(ler of the members of the l￿rd of Trustees on 31 March 2026 and signed on their behalf by: Bob Low (Chair of Trustees) Page 8 K￿E COLLEGE stst¢m¢nt of Tru$t¢¢$' r¢$pon$lbllltl•$ For thè Yèar Endèd 31 August 2025 The Trustees are responsible for preparing the Trustees. Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Praclicel. The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial which give a true and fair view of the state of affairs of the Charity and of ts incoming resources and application of resources. including its income and expenditure. for that period. In preparing these financial stslements, the Trustses are required to.. select suitable accouriting w)licie5 and then apply them consistently.. observe the methods and principles ol the Charities SORP IFRS 1021., make judgments and accounting estimates thal are reasonable and prudent.. st8le whether applicable UK Accounting Stsndard5 IFRS 1021 have L*on followed, subject to any material departures disclosed and explained in the financial statements.. prepare the financial statements on the goiThJ concem basis unless il is inappropriate lo presume that the Charity will continue in busin8SS. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charitls transactions and disclose with reasonable accuracy al any time the financial p0511ion of the Charity and enable them lo ensure that the financial statements comply the Charities Act 2011. the Charity (Accounts antl Rèports) Regulations 2008 8ntl Ihe provisions of the Trust deed. They are also responsibl& lor 8aleguarding the assets of the Charity and hence lor tsking reasonable steps for the prevention and detection of fraud and olher irregularilies. Approved by order of the membors of the board of Trustees on 31 March 2026 and signèd on its bahall by.. Bob Law (Chair of Trusleesl Page 9 K￿E COLLEGE Independent Auditors. Report to the Members of KITE College Opinion We have audited the finanual stslements of KITE College lthe '(1)8rity1 for the year ended 31 August 2025 which comprise the Statement of Financial Activities. the Balan￿ Sheet, the Statement of Cash Flows and the relaled noles, including a sumrnary ol si9nificant accountsng policies. The finanaal reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounts'ng Standards, including Finanaal Reporting Stsndard 102 'The Financial Repo￿.ng Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Practicel- The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland IFRS 1021 in preference to the AC￿￿nting and Reporting by Charities.. Statement of Recommended Practice i55ued on 1 April 2005 which is referred lo in the extant regulations but has been withdrawn. This has been done in order for the accounts to provide a tnje and fair view in accordance wilh the Generally Accepted Accounting Practice effective lor reporting periods beginning on or after 1 January 2015. In our opinion Ihg financial stalemenls.. give a true and lair view of the slate of the charitys affairs as al 31 August 2025 and of Ils incombng resources and application of resources for the year then ended- have been properly prepared in ae4XJrdance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Charities Act 2011. Ba818 for oplnlon We conducted our audit in accordance wilh Inlemational Standards on Audiling IUKI IISAS IUKII and applicable law. Our responsibilities under those slandards are luriher described in Ihe Auditor5, responsibilities for the audit of the financial slalemen15 section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial slalements in the United Kingtlom, including the Finanaal Reporting Council's Ethical Stsndard, and we have ftjffilled our other ethical responsibilities in accordance with these rèquirements. We believe that the audit evidgnce we havo oblaingd is sufficient and appropriate to provide a basis for our O￿nion. Conclusions relatlng to golng COn￿M In auditing the financial slatements, we have conduded thal the Trustees. use of the 90ing concern basis of accounting in the preparation ol the financial statemenls is appropriate. Based on the wort we have perfornied. we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitys ability to continue as a going concern for a period of at least twelve months from when the finanaal siatements are authorised for issue. OLJr rèsponsibilities and th8 responsibiliti8s of th8 Trustees with r8sp8¢1 to going concem arè d8scribèd in thg relevant sections of this report. Page 10 K￿E COLLEGE Independent Auditors. Report to the Members of K￿E College (continued) Other infomiation The other infomiation comprises th8 inf0mlati￿ induded in the Annual Report other than the financi81 statements and our Auditors, Report thereon. The Trustees are reswnsible for the other infomiation contained within the Annual RerK>rt. Our opinion on the financtal stalements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion Ihereon. Our responsibility is lo read the other information and, in d(Mng so, consider whether the other information is materially incon51slent with the financial slatemen15 or OUT kno%￿edge obtained in the course of the audit. or otherwise appears lo be materially misslalemmodab"on. an¢J other related ¢>)sts. Page 25 K￿E COLLEGE Notes to the Financial Statements For the Year Ended 31 August 2025 11. Tanglbl• fix¢d ass¢t$ Long-term leasehold Fixture5. property Garagè Flttlngs and Imp'mènts Equlpmènt Equlpmant Total C05t or valuation At 1 September 2024 Additions Disposals 148,135 4.547 {17,8661 23.7SS 73,670 69.998 12,7861 245,560 74,545 125,7911 {5.1391 At 31 August 2025 134,816 18,616 140,882 294,314 Depreciation Al 1 SepteM￿r 2024 Charge for the year On disposal$ 33,373 13,481 15,3601 23.7SS 33,882 35,221 11,7921 91,010 48,702 112,2911 (5,1391 At 31 August 2025 41,494 18.616 67,311 127,421 N•t book value At 31 August 2025 93,322 73,571 166,893 Al 31 August 2024 114,762 39, 788 154,550 12. Dobtors 2025 2024 Due wlthln on• y¢ar Trade debtors 2,466 192,245 Prepayments and accrued income 77,416 194,711 17,420 Page 26 K￿E COLLEGE Notes to the Financial Statements For the Year Ended 31 August 2025 13. Credltors: Amounts falllng du• wlthln one y•ar 2025 2024 Trade creditors Other taxalion and social security Other creditors Accru81s and tleferretl income 47.575 108,784 19,998 30,045 45,498 22,650 9,546 128.908 206.402 206,602 2025 2024 Deferred In￿Me al 1 Sèplember 2024 Resources deferred during the year Amounts released from previous period$ 89,832 67,074 89,832 (67.074) 189,8321 D•ferred Incom• at 31 Augu¥t 2025 89,832 Del8rr8d income in th8 year endèd 31 August 2024 represented DfE funding recaivèd in advance for the year ended 31 August 2025. 14. Flnanclal Instruments 2025 2024 Flnanelal a8S•ts Financial assets measured at fair value through income and expendilure 617,435 573,436 Page 27 K￿E COLLEGE Notes to the Financial Statements For the Year Ended 31 August 2025 15. Stat•mont of fund$ Statement of funds - current year Balance at 1 Stpternber 2024 Balance at Gainsl 31 Au9U$t ILoss•sl 2025 Tran5fer$ Inlout Income Exp•ndlturo Unrestricted funds D¢$lgnated funds Designated fijnds 102,083 37,917 140,000 Gen¢ral funds Unrestricted funds 376,721 2,446.914 {2,152.6971 33,699 172,0001 632,637 Total Unrestrlcted funds 478.804 2,446.914 {2,152.697) 71,616 172,0001 772,637 Rtitrlct•d funds Restricted Funds 78,826 17.2101 {71,6181 Total of fund$ 478,804 2,$25,740 {2,159.907) 172,0001 772,637 Restricted funds lotalling £71,616 were received for Ihe purchase of fixed assets. These funds were fully spent on capitsl expenditure during the year. resultsng in the release of the restriction. The charity is free to use the fixetl assets in line with its charilable objectives., accor(lingly, the assets are recognised within unreslricled funds through a transfer between funds. The specific purposes for which the funds are to be applied are as follows.. The designated lund represents amounts set aside in relation to potential upaid rental fees wlh Kent County Council following ongoing negoliat10115 regarding the property in use. Unrestricted fvnds arg applied to the general y￿rk of the Charity to supp)rt all charitablo obje¢tiVOS. Page 28 K￿E COLLEGE Notes to the Financial Statements For the Year Ended 31 August 2025 15. Stat•mont of fund$ l¢ontlnued} Statement offunds - prior year BalanGe at I September 2024 BalanGe at 31 August 2024 Transfers inlout Gains/ (Losses) Income Expenditu Unrestricted funds D¢$lgnated funds Designated fijnds 102,083 702,083 Gen¢ral funds Unrestricted funds 531,218 1,698,438 (1.692,8521 (102,083) (58,000) 376, 721 Total Unrestrlcted funds 537,218 1,698,438 (1,692,852) (58,000) 478,804 Re8trl¢t•d funds Restricted Funds 2,401 f2,4071 Total of funds 531,218 1.700,839 (1.695.253) (58.000) 478,804 Page 29 K￿E COLLEGE Notes to the Financial Statements For the Year Ended 31 August 2025 16. Summary of fund$ Summary of funds- Current year Balance at 1 Stpternber 2024 Balance at Gainsl 31 Au9U$t ILoss•sl 2025 Tran5fer$ Inlout Income Exp•ndlturo Designated funds Gener81 funds Restricted hjnds 102,083 376,721 37,917 33,699 {71,6161 140,000 632,637 2,446,914 {2,152.697 78,826 (7.2101 172,0001 478,804 2,525,740 {2,159,907) 172,0001 772,637 Summary ollund#-prlor year Balance al I September 2023 B81ancg 81 31 August 2024 Transfvrs in/out GainFJ {LossgsJ Inmme Exponditu Designated funds General funds Restricted funds 102,083 (102,083) 102,083 376,721 531,218 1.698,438 (1.692,852) 2,401 (2,401) (58,000? 531,218 1, 700,839 (1.695.2531 (58.000) 478,804 Page 30 K￿E COLLEGE Notes to the Financial Statements For the Year Ended 31 August 2025 17. Analy$l$ of not a$$¢ts b¢lwtsn funds Analysis of net assets between funds - current year Unrestricted fund$ 2025 Total fund$ 2025 Tangible fixed assets Current assets Creditors due within one year 166,893 812,146 1206,4021 166,893 812,146 {206,4021 Total 772,637 772,637 Analys18 of net assets beiweon funds - prlor year un￿stricted fvnds 2024 Total fvnds 2024 Tangible fixed assets Current assets Creditors due within ona yéar 154.550 530,856 {*￿.602) 154,550 530,856 (206.602) Total 478,804 478,804 18. Reconclllatlon of net movement In funds to net ¢a$h flow from operatlng a¢tlvltl&s 2025 2024 Net income for the year las per Stslement of Finawal Activities 365,833 5,586 Adjustments for: DeprecAalion charges C8pilal grants from DfE Loss on the sale of fixed asseis Increase in debtors Increaselldecreasel in creditors Pension LGPS 48,702 171,6161 13.500 {177.2911 12001 172,0001 35,800 (5,395) T8,521 (58,000) Net cash provided by operating activities 106,928 56,512 Page 31 K￿E COLLEGE Notes to the Financial Statements For the Year Ended 31 August 2025 19. Analy$l$ of ¢a$h and ¢a$h •qulval•nts 2025 2024 Cash In hand 617,435 513,436 Total cash and cash equivalents 617,435 573,436 20. Analysls of changes Sn net debt September At31 2024 Cash flows August 2025 Cash al bank an(i In han(i 513,436 103,999 617,435 513,436 103,999 617,435 21. Contlngent liabllltl•s Klle College has entered into a lease ag￿ement with Kent County Councll, under whlch rental payments are due. The college is currently in dispute with Kenl County Council over remedial works which were due to take place prior to occupalion but are still outslanding. It is the belief of the Trustaes that no rental amounts will be due until after the remedial works have iaken place. If in the rare circumstance that KCC charge backdated renl at Ihis poinl, Ihe potential liability to ihe cdlege up lo 31 March 2025 will be £140,000. Al the date of signing. Ihe amount of any additional rent from April 2025 to August 2025 cannot be reliably eslimaled. Page 32 K￿E COLLEGE Notes to the Financial Statements For the Year Ended 31 August 2025 22. Pon$lon ¢ommltm•nt$ The Charity operates a defined benefit pension scheme. The Chariws employees bek)ng to Local Government Pension Scheme ILGPSI, which is managed by Kent County Counul. The latest actuarial valaution of the LGPS relaled lo the peritxl ended 31 March 2022. The LGPS is a funded defined benefft pension scheme. Trmih Ihe assets held in separate trusteev administered funds. The total contribution made for the year ended 31 August 2025 was £348,00012024- £289,000), of which employels contributions lotslled £281,000 12024 £233,000) and employee's conlribub'ons lotalled £67.000 12024 - £56.0001. The agreed contribub.on rates for fulure years are 26.8 per cent for employers an(J vaiiable per cent for employees. Principal actuarial assumptions at the Balar￿ Sheet date (expressed as weighted averages): At 31 Al 31 August August 2025 2024 Discounl rate Future salary increases Future pension inereases 6.20 3.60 2.60 5.75 3.80 2.80 The current mortality assumplions indude sufficient allowance for future improvements in mortality rates. The assumed life expectatsons on retirement age 65 are: At 31 Al 31 August August 2025 2024 Yaarg Years Mortality rale$ lin years) - for a male a9ed 65 now - at 65 for a male aged 45 now for a female aged 65 now al 65 lor a lemale aged 45 now 21.4 23.0 23.7 20.7 22.0 23.3 25.4 24.7 The Charivs share of the assets in the scheme was.. At 31 At 31 August August 2025 2024 Equities Gilts 840,000 74,000 203,000 111,000 40,000 70,000 65,000 564,000 69,000 143,000 91,000 24,000 50,000 46,000 Other bonds Property Cash and other liquid assets Absolute retum Infrastructure Total fair value of assets 1,403,000 981,000 Page 33 K￿E COLLEGE Notes to the Financial Statements For the Year Ended 31 August 2025 22. Pon$lon ¢ommltm•nt$ l¢ontlnu¢d) The actual relum on scheme assets was £81.000 (2024- £60.000). The amounts recognised in the Statement ol Finantial Acb"vilies are as follows.. 2025 2024 Current service cost Inleresl income Inter8sl cost 215,000 159,0001 52,000 780,000 (41,000) 35,000 Total amount rocognlsed In the Statement of Financial Activities 208,000 7 74,000 Movements in the present value of the defined benefit obligation were as follow$.' 2025 2024 Opening defined benefil obligation Current service cost Interest cost Conlrlbulions by scheme partlclpants Aduarial gains Benefits paid 798,000 215,000 42,000 67,000 {295,0001 112,0001 536,000 780,000 30,000 56,000 {4,000) Closing dellned benefrt obllgatlon 815,000 798,000 Movements in the fair value of the Charitys share of scheme assets were as follow5: 2025 2024 Opening fair value ol scheme assets Expected return on assets Actuarial gains Contributions by employer Contributions by scheme participants Benefits paid 987,000 59,000 22,000 280,000 67,000 112,0001 639,000 41,000 19,000 232,000 56.000 Closlng falr valu• of sch8m• assets 1,403.000 987,000 The Charity has an unrecognised surplus ol £588,000 (2024 - £189,000) in respect of its defined benefit pension scheme as it does not expect to recover the plan surplus either through reduced contribulions in the future or through refunds from the plan. Page 34 K￿E COLLEGE Notes to the Financial Statements For the Year Ended 31 August 2025 23. Op¢ratlng lea$0 ¢ommltm¢nts At 31 August 2025 the Charity had commitments to make future minimum lease payments under non- cancellable operating leases as follows.. 2025 2024 Not later than 1 year Later than 1 year and not later Ihan 5 ypars 11,129 25,167 12,817 71,211 36,296 24,028 The following le8se payments have been ret¥Jgnised as 8n expense In the Statement of Financial Acts'vilies.. 2025 2024 Operating lease rentsls 19,249 2,230 24. Related party trans¥¢tlon$ During the year, the college received a grant totalling £Nil 12024.. £2,400) from Red Hill Trust. a charity which 8ob Law. Ihe Chair of the College, is also a Truslee. Payments were made to The Social, Emotional and 8ehavioural Difficulties Association ISEBDAI. a charity which Bob Law is a Trustee of, tolalling £39412024.. £1.3741. Paymenis were also made lo Challenger Troop CIC, an entity in which Bob Law is a non-exe¢utive director, lolalling £90012024.. £3,600>. Al the Balance Sheet dale, no amounts were owed or owing in relation lo Ihese IransactK>ns. During the year. the college received income totalling £56012024.. £Nill from Canterbury Christchurch University, a universily which Pam Jones, a iTUStee ol the College, is a Governor. At Ihe Balance Sh88l date £Nil12024.. £Nill was outstanding. During the year, the college pvrchase(l a second hand car from a close family momber of Stuart Cumming, 8 member of the senior leadership team. The payment lolalled £45012024.. £Nill and was ftjlly paid by the year end12024'. £Nill. 25. Agency Arrangement The college distributss 1&19 bursary funds to students as an agent for DfE. In tho acry)unting period ending 31 August 2025 the wllege received £23,216 and disbursed £16,266 from the ftjnd, in¢luding £Nil for administration of the fund. An amounl of £16,371 is induded in other creditors relating to undistribLJted funds thal is repayable lo DfE. Comparalive for the accounts'ng period ending 31 August 2024 are £4,340 received, £1,480 disbursed and £9,421 induded in other credilors. Page 35