NAsuwf - The Teachers, Union CENTRAL BENEVOLENT FUND STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2025 2025 2024 Notes INCOME AND EXPENDITURE Incoming Resources: Incoming resources from generated funds.. Donation from NASU Donated Se1$ from NASU Donations, legacies and sundry income Investment income 220,893 215,338 162,524 88,181 686.936 226,685 205,201 62,335 91,540 585,761 Total incoming resources Resources expended: Raising funds.. Investment and property management fees Investment property costs 13.283 1,416 12,908 21,498 Charitable activities.. General grants Staff costs Premises costs Legal and professional Total resources expended 283.532 207,900 7,438 14,701 253,045 198,655 6,547 15,383 528 270 508,036 Net income before revaluations 158,666 77,725 Gains on investment assets Revaluation of investment property Net movement in funds for the year 204,158 109,613 25,000 212,338 362,824 Fund balances brought foward at 1 January 2025 Fund balances carried forward at 31 December 2025 3,131,345 2,919,008 3,494.169 3,131,345 All of above income and expenditure relates to unrestricted funds. Notes 1 to 12 form part of these accounts 38
NAsuwf - The Teachers, Union CENTRAL BENEVOLENT FUND BALANCE SHEET 31 DECEMBER 2025 2025 2024 Notes FIXED ASSETS Investments 2,761,027 2,567,331 DEBTORS: Due after more than one year Benevolent loans 14,242 55,320 CURRENT ASSETS Debtors and prepayments Benevolent loans Cash at bank 224,041 22,477 487,777 16,911 840 522,028 734,295 539,779 CURRENT LIABILITIES Sundry creditors 10 {15.395) (31,0851 NET CURRENT ASSETS 718,900 508,694 NET ASSETS 3,494,169 3,131,345 FUNDS General - Unrestrirted 3,494,169 3,131,345 Approved by the Trustees on 1710312028 and signed on their behalf: PMC Lei 02b 1643.08 GMT) Mike Leigh Trustee Notes 1 to 12 form part of these aecounls 39
NAsuwf - The Teachers, Union CENTRAL BENEVOLENT FUND STATEMENT OF CASHFLOWS 31 DECEMBER 2025 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net income for the reporting period Interest received Rent from investments Dividends received Gains on investments Investment management fees Gains on revaluation of investment property {Increaselldecrease in debtors {Decrease)lincrease in creditors Net cash provided byllused in) operating activities 362,824 (5,9061 118,3601 163,9151 (204,1 $81 10,256 212,338 (6,769} {18,360} {66,411} 1109,613} 9,977 {25,000} 737 5,359 (187,6881 115,6901 (122,6371 2,258 CASH FLOWS FROM INVESTING ACTIVITIES Interest received Rent from investments Dividends received Investment income reinvested 5,906 18,360 63,915 205 6,769 18,360 66,411 70 Net cash provided byllused in) investing activities 88,386 91,610 (DECREASE}llNCREASE IN CASH AND CASH EQUIVALENTS IN THE YEAR (34,251) 93,868 Cash and cash equivalents at the beginning of the year 522,028 428,160 TOTAL CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 487,777 522,028 Notes 1 to 12 form part of these accounts 40
NAsuwf - The Teachers, Union CENTRAL BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 CHARITY INFORMATION The Central Benevolent Fund (the Charity) is set aside for general benevolent purposes of the NAsu in alleviating hardship to members. The fund is managed as a separate entity from the NAsU. 2. ACCOUNTING POLICIES Basis of preparation of financial statements The accounts {financial statements) have been prepared under the historical cost convention, with the exception of investments which are stated at market valuation. The financial statements have been prepared in accordance wilh the Statement of Recommended Practice. Accounting and Reporting by Charities preparing their accounts in accordan with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 1021 and the Charities Act 2011. The Central Benevolent Fund constitutes a public benefit entity as defined by FRS 102. The Trustees have given due consideration to the Charity s Commission's published guidance on the Public Benefit requirement under the Charities Act 2011. The trustees Consider that there are no material uncertainties about the Central Benevolent Fund's ability to continue as a going GOnrn. b. Funds structure General funds are unrestricted funds that are available for use at the discretion of the trustees in furtherance of the general objects of the Charity and that have not been designated for specific purposes. Income recognition All incoming resources are included in the Statement of Financial Activities ISOFAI when the Charity is legally entitled lo the income and the amount can be quantified with reasonable accuracy. Income tax recoverable in relation to donations received under Gift Aid or deed of covenant is recognised at the time of the donation. d. Resources expended All resources expended are accounted for on an accruals basis. Charitable activities include costs of SeNiS and of grants including support costs. Liabilities are recognised where there is a legal or constructive obligation committing the Charity to the obligation. Resources expended include irrecoverable VAT. Financial instruments Fixed assel Investments Investments are staled at market value. Gains and losses representing the movement in market values during the period are credited or charged to the SOFA in the period of gain or loss. Debtors Short term debtors are measured at transaction price, less any impairment. Creditors Short tem trade creditors are measured at the transaction price. There are no complex financial instruments. 41
NAsuwf - The Teachers, Union CENTRAL BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS FOR THEYEAR ENDED 31 DECEMBER 2025 Donated services Donated services are included for staff costs and premises costs at the value the Charity would have paid for them in the open market. g. Benevolent loans Benevolent loans are considered to meet the criteria of COn$s1onary loans under FRS 102. They are recorded in the financial statements at face value. 3. JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made may include.. Revaluation of Investment properties The Charity carries its investment property at fair value, with changes in fair value being recognised in the Statement of Financial Activities. The Charity has used a professional valuation carried out in January 2023 by Kennigton's Chartered Surveyors, RICS registered valuers, to detemiine the current market value of the property. Donated services from NASUK The Charity receives donated services which are analysed in note 4. The staff costs are calculated based on the percentage of each staff members, time spent on providing administration services to the Charity. Premises costs are calculated by apportioning the total property costs over the proportion of staff costs donated. DONATED SERVICES FROM NAsuiiirr 2025 2024 Staff costs Premises Costs 207,900 7,438 215,338 198,654 6,547 205,201 Govemance costs incurred by Central Benevolent Fund consist only of auditors, remuneration of £9,550 (2024. £9,275). DONATIONS, LEGACIES AND SUNDRY INCOME 2025 2024 Donations Income from the sale of property loan 977 161,547 162,524 62,335 62,335 During the year, one of the Charity's benevolent loans defaulted. The loan was secured against a property. The Charity received £180,097 from the sale of the property, and the carrying amount of the related benevolent loan debtor of £18,550 was written off. The net amount of £161,547 has been recognised as income in these financial statements. 42
NAsuwf - The Teachers, Union CENTRAL BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 (continued INVESTMENT INCOME 2025 2024 Dividends Rental income Bank deposit interest 63.915 18,360 5,906 88,181 66,411 18,360 6,769 91,540 GRANTS PAYABLE 2025 2024 Benevolent loans converted to grants To individuals 52912024.. 543) To NAsuv Federations 65 (2024.. 67) Legal and management expenses 600 238.493 25,666 18.773 283,532 209,507 23,196 20,342 253,045 The ultimate beneficiaries of NAsuv Federations Grants are individuals. INVESTMENTS Investments are stated at market value. 2025 2024 MARKET VALUE.. At 1 January 2025 Income Account Movement Investment management fees Revaluation to fair value At 31 December 2025 2,117,331 (206) {10,2561 204,158 2,311,027 2,017,765 (701 19,9771 109,613 2,117,331 202S 2024 Market value made up as follows: UK Fixed Interest Emerging Market Government Bonds Overseas Fixed interest UK Equities Overseas Equities Alternatives Broker account 201,798 102,123 16,346 753,506 1,041,735 104,232 91,287 2 311 027 182,565 55,660 16,899 738,948 973,490 123,324 26,445 2,117,331 Total listed investments Property At 1 January 2025 Revaluation At 31 December 2025 Total investments 450,000 425,000 25,000 450,000 2,567,331 450,000 2,761,027 43
NAsuwf - The Teachers, Union CENTRAL BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 (continued Material investments Property - Genesta Road Alphabet Shell plc Pershing Square Holdings Limited Astrazeneca plc Treasury 4.250/0 Gilt 711212040 Rathbones Asset MGMT Historic cost of investments 450,000 93,082 57,540 72,265 56,539 55,971 103 510 888,907 450,000 60,460 51,996 57,070 55,660 675,186 DEBTORS 2025 2024 Amounts owed by group undertakings Other debtors 220,395 3,646 224,041 16,911 16,911 Benevolent loans Due under 1 year 22,477 840 Due over 1 year 14,242 55,320 Benevolent loans are interest free and are repayable by monthly instalments or in a lump sum triggered by a specified event. 10. CREDITORS 2025 2024 Amounts owed to group undertakings 1,971 Accruals and deferred income 15,395 15,395 29,115 31,085 44
NAsuwf - The Teachers, Union CENTRAL BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 (continued 11. ANALYSIS OF CHARITABLE FUNDS Fund balances 1 January 2025 Income Expenditure Gains Fund balances 31 December 2025 Central benevolent fund 3,131,345 686,936 204,158 528,270 3,494,169 Fund balances 1 January 2024 Income Expenditure Gains Fund balances 31 December 2024 Central benevolent fund 2,919,007 585,761 508,036 134,613 3,131,345 All charitable funds are unrestricted. 12. RELATED PARTY TRANSACTIONS Only Trustees are considered key management personnel. During the year, no Trustees received any remuneration or reimbursed expenses (2024.- Nil). There are no other related paty transactions during the year (2024.- Nil). 13. FINANCIAL INSTRUMENTS 2025 2024 Financial assets Financial assets measured at fair value 2,311.027 2,117,331 Financial assets that are debt instruments measured at amortised cost 748,538 595,100 2025 2024 Financial Liabilities Financial liabilities measured at amortised cost 15,395 31,085 Financial assets measured at fair value through income and expenditure comprises investments in listed securities. Financial assets measured at amortised cost comprise cash al bank, benevolent loans and sundry debtors. Financial liabilities measured at amortised cost comprise sundry creditors. 45
NAsuwf - The Teachers, Union CENTRAL BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 (continued The entity's income, expense, gains and losses in respect of financial instruments are summarised below.. 2025 2024 Total investment income for financial assets measured at fair value through income and expenditure 63,915 66,411 Net losses on financial assets measured at fair value through income and expenditure {204,158) {109,6131 Total interest income for financial assets measured at amortised cost through income and expenditure 5,906 6,769 46
NAsuwf - The Teachers, Union CENTRAL BENEVOLENT FUND REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2025 Legal and administrative The Central Benevolenl Fund is governed under the Fund Rules dated April 2004. Charity Number: 285793 Registered Name: NAsuwf Benevolent Fund Trustees: Mike Leigh Omolo Johnson Rachel Knight Helen Johns Fiona Hawksley-cartwrighl Mark Burns (resigned 410712025) (Chair) [vi-chaIr) The power of appointmenl of new trustees is vested in the National Executive. National Treasurer: Howard Leighton {0510912025} Chris Holland (resigned 04109120251 Principal OITice: Hillscourt Rose Hill Rednal Birmingham B45 8RS Bankers: Unity Trust Bank PIC Nine Brindley place Birmingham B12HB Investment Managers: Rathbone Investment Management 159 New Bond Street London W1S 2UD Solicitors: Thompsons New Union House 2 Harbour Avenue Plymouth Devon PL4 OBJ Auditors: Crowe U.K. LLP Black Country House Rounds Green Road Oldbury West Midlands B69 2DG Investrnent powers: The Fund Rules empower the trustees to invest at their absolute discretion. 47
NAsuwf - The Teachers, Union CENTRAL BENEVOLENT FUND REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2025 Objectives and Activities Under the Rules, the objective of the Benevolent Fund is the relief of poverty amongst members, fomier members, the dependants of members and former members and the dependants of deceased members. This remained the central objective of the Charity for 2025. The public benefit aims of the Charity are fulfilled in meeting its objective. During 2025, new applications for benevolen assistance were carefully considered on a daily basis by the Legal and Casework Team. Benevolent Fund monies in the form of non-repayable grants were awarded as appropriate to applicants who were considered to be in financial hardship, thereby fulfilling the objective of the Fund. In addition, existing benevolent cases were reviewed throughout the year and the Legal and Casework Team authorised further financial support in circumstances where the beneficiary continued to suffer financial hardship. NAsuv Central Benevolent Fund continues to rely on the support of lay members to fulfil the functions of a 'benevolence visitor,. Benevolence visitors are volunteers, some of whom hold other lay official posts within the Union and some who have been elected with specific responsibility for benevolence casework in their area. The role of the visitor is to meet with applicants and complete the application fomi on their behalf. The contribution of benevolence visitors is very significant and valuable in ensuring that the current application process can be completed. Vvhilst it is not possible to quantify the number of hours of work undertaken by benevolence visitors, 293 new applications were received in 2025, with a furthèr 113 cases from applicants who had previously applied to The Fund. Achievements and Perfomianc8 Funding continues to be received in the form of a donation from the Union's General Fund in accordance with the number of subscribing members. The available funding enabled the Trustees to fulfil the objective of relieving poverty amongst members, former members, the dependants of members and former members and the dependants of deceased members who apply for benevolen assistance or continue to require financial support from the Union. The Trustees recognise the important additional contribution donated by the Union via the donated service to support the smooth running ofthe fund. Of the £471,597 available for distribution (after administration expenses) for the period from the General Fund, the trustees approved charrtable expenditure amounting to £312,932 resulting in a surplus of £158,665. As always, we are indebted to all those who have supported the Benevolent Fund during the year. Particular thanks going to our committed team of volunteers. There are approximately 186 volunteers undertaking benevolence visits and performing other duties in the local federations and their involvement is a crucial part of both the charity and the Union's work. A number of courses will be rolled out during 2025 to gain a greater number of visitors and lo improve the geographical spread, following the retirement of many of our visitors. The investments (excluding property} are managed by Rathbone Investment Management subject to certain restrictions over the type of investment and with the objective of obtaining reasonable long-term overall growth at moderate risk. The investment decrease in the year based on average investments held is 9.22°/0 (2024.. 5.3%). The investment income return for the year based on average investments held is 2.890h (2024.. 3.21 OA). The Trustees are satisfied with this perfonnance. 48
NAsuwf - The Teachers, Union CENTRAL BENEVOLENT FUND REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2025 Benevolence The Benevolent Team considered 406 applications during the year, with 293 new applications. It is envisaged with the continued cost of living crisis, high energy bills and mortgage rates, the number of applicants to the Fund will remain consistent. A total of £283,532 was paid out from the Central Benevolent Fund in the fomi of grants to applicants. Of this total.. £121,298 was for single-payment grants to applicants who were facing financial hardship for a whole variety of reasons", £48,400 was for convalescence grants to aid applicants during a time of physical or emotional illness., £ 34,100 was for holiday grants., £10,900 was for monthly grants., £9,550 was for education grants,. and £14,245 was for grants for rent and mortgage payments. In total, the Benevolent Federations reIVed £25,666 into their imprest acwunts to provide grant aid at a local level. The Central Benevolent Committee recovered £19,441 from recipients repaying loans awarded to them from the Fund. No loans were written off or converted lo grants this year. The loan book for the Fund stands at £ 36,719 at the end of the year. In the latter part of 2025, the various grant types provided to applicants were increased in value, to ensure they met the increased costs of day to day living. Applicants continued to be regularly referred to Payplan and Citizen Advice Bureau for money and debt management services, at no cost to the member or the Union. Financial Review The Trustees consider that in the case of the Benevolent Fund, the assets are sufficient and adequate to fulfil the obligations of the fund, in the foreseeable future. Unrestricted funds amount to £3,494,168 ofwhich, after deducting Benevolent loans, £3,457,450 is freely available. The Trustees consider the current level of free reserves comfortable, without being excessive. This places them in the fortunate position of being able to meet their policies of funding members of the NAsuv and having funds available to fulfil the objects of the Benevolent Fund when called upon. The reserves policy ensures that all Benevolent Federations are funded on an equal basis and avoids unused reseNes being carried foNard each year. 49
NAsuwf - The Teachers, Union CENTRAL BENEVOLENT FUND REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2025 (continued) Financial Review (continued) The Trustees have identified and assessed the major risks to which the Charity is exposed, in particular those related to the operations and fInanS of the Charity. A formal risk assessment statement is in place which, amongst other things, reflects the changes in the administration of the Fund. This will continue to be reviewed annually. The Trustees are satisfied that the risks have been identified and that controls are in place to manage them as far as possible. It is recognised that systems can only provide reasonable and not absolute assurance that risks have been adequately managed. Structure Governance and Management The NAsu Benevolent Fund Rules, which were adopted at Special Rules conferen in November 1996 and amended at Conference 2004, govern the operation of the Benevolent Fund. Vvhilst NAsuv Benevolent Fund is a separate, charitable fund, it is considered to be an asset of the Union. The Benevolent Funds are managed as a separate entity but both the Fund and the Union are deemed to be under common control. The Trustees of the Central Benevolent Fund are appointed by a resolution of the National Executive for a term of one year commencing on the date of appointment. The six appointed Trustees form the Central Benevolent Fund Committee and are charged with responsibility for the Benevolent Fund. The Trustees of the Central Benevolent Fund concentrate on the strategic and governance issues relating to the management ofthe Fund. The day to day operation ofthe Fund is managed by the Legal and Casework team, who have responsibility for the administration of the Fund. Delegated staff within the Legal and Casework Team work under clear guidelines and criteria agreed by Trustees. They detemiine eligibility for assistance from the Fund and the most appropriate form of assistance, according to the applicant's financial circumstances and individual needs. This information is gathered by a benevolence visitor who may make a recommendation. Further grants may be made following receipt of a financial update form as part of the periodic case review process. The Rules provide for the formation of Benevolent Federations which are comprised of Local Associations. There are nine Benevolent Federations in operation. The Rules further provide that the Committee may publish model rules for the conduct of Benevolent Federation business which must be adopted by each Benevolent Federation. The Charity and the NAsu are under common control. The majority of the income of the Charity is donations from the NAsU. Fundraising The Charity had no fundraising activities requiring disclosure under S162A of the Charities Act 2011. 50
NAsuwf - The Teachers, Union CENTRAL BENEVOLENT FUND STATEMENT OF TRUSTEES, RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS Charities Governance Code The Trustees are aware of the new guidance and during the coming year plan to undertake a review to produce recommendations and an action plan to ensure that the Charity takes positive steps towards working in line with the Code in all ways where it is practicable to do so. Approved by the Trustees on 1710312026 fmc Lei Mike Leigh Trustee 51
INDEPENDENT AUDITORS, REPORT TO THE TRUSTEES OF NAsuwf - The Teachers, Union CENTRAL BENEVOLENT FUND The purpose of this statement is to distinguish the Trustees of the NAsU Central Benevolenl Fund's responsibilities for the financial statements from those of the auditors as stated in their report. The United Kingdom Charities Act 2011 requires the Trustees to keep proper books of account with respect to the affairs of the Charity, and to prepare statements of account for each accounting period consisling of an income and expenditure account and balance sheet. The Trustees are also responsible for safeguarding the Charity's assets, and hence for taking reasonable steps for the prevention and detection of error, fraud and other irregularities. In preparing the financial statements the Trustees ofthe NAsu Central Benevolent Fund are expected to-. select suitable accounting policies and then apply them consistently, making judgements and estimates that are reasonable and prudent., follow the recommendations of the Charity Commission and of the accounting profession wrth regard to fomi and content of the financial statements, or to disclose and explain any departures therefrom,. prepare the financial statements on the going concern basis unless it is inappropriate to assume that the Charity will continue to meet its objectives., the Maintenan and integrity of the NAsuv website is the responsibility of the Honorary Treasurer,. the work carried out by the auditors does not involve the consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred in the financial statements since they were initially presented on the website., legislation in the United Kingdom governing the preparation and dissemination of the financial slalements and the other information included in annual reports may differ from legislation in other jurisdictions. Opinion We have audited the financial statements of NAsu Central Benevolent Fund for the year ended 31 Dember 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice}. In our opinion the financial statements.. give a true and fair view of the state of the Charity's affairs as at 31 December 2025 and of its incoming resources and application of resources, including its income and expenditure for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with Ihe requirements of Ihe Charities Act 2011. 52
INDEPENDENT AUDITORS, REPORT TO THE TRUSTEES OF NAsuwf - The Teachers, Union CENTRAL BENEVOLENT FUND (continued) Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS {UKI) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant lo our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit eviden we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfomied, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going Gonrn are described in the relevant sections of this report. Other information The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is malerially inconsislent wilh the financial statements or our knowledge obtained in the audil or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misslatemenls, we are required to determine whether this gives rise to a material misstatemenl in the financial statements themselves. If, based on the work we have perfomied, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. 53
INDEPENDENT AUDITORS, REPORT TO THE TRUSTEES OF NAsuwf - The Teachers, Union CENTRAL BENEVOLENT FUND (continued) Matters on which we are required to report by exception We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report lo you if. in our opinion.. the information given in the financial statements is inconsistent in any material respect with the trustees, report., or sufficient accounting records have not been kept., or the financial statements are not in agreement with the accounting records and returns., or we have not received all the information and explanations we require for our audit Responsibilities of trustees As explained more fully in the trustees, responsibilities statement sel out on page 51, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misslalemenl, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the Charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial slatements We have been appointed as auditor under section 144 ofthe Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordan with ISAS {UK} will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our ProdureS are capable of detecting irregularities, including fraud is detailed below.. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at.. www.frc.org.uklauditorsresponsibilities. This description forms part of our auditor's report. 54
INDEPENDENT AUDITORS, REPORT TO THE TRUSTEES OF NAsuwf - The Teachers, Union CENTRAL BENEVOLENT FUND (continued) Extent to which the audit was considered capable of detecting irregularities, including fraud Irregularities, including fraud, are InStanS of non-compliance with laws and regulations. We identified and assessed the risks of material misslatemenl of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion. We obtained an understanding of the legal and regulatory frameworks within which the Charity operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities SORP IFRS10212019. We assessed the required compliance wilh these laws and regulations as part of our audit procedures on the related financial statement items. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the Charity's ability to operate or to avoid a material penalty. We also considered the opportunities and inntiveS that may exist within the Charity for fraud. The laws and regulations we considered in this context for the UK operations were Charity Commission regulations, General Data Protection Regulation (GDPR), Anti-fraud, bribery and corruption legislation, Environmental protection legislation, Health and safety legislation, Taxation legislation and Employment legislation. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any. We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordan with auditing standards. For example, the further removed non- compliance with laws and regulations lirregularitiesl is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of legUlarl11es, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non- compliance with all laws and regulations. 55
INDEPENDENT AUDITORS, REPORT TO THE TRUSTEES OF NAsuwf - The Teachers, Union CENTRAL BENEVOLENT FUND (continued) Use of our report This report is made solely to the Charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the Charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and the Charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed. C¥Mo LLP Crowe U.K. LLP Statutory Auditor Black Country House Rounds Green Road Oldbury Wesl Midlands B69 2DG Date: 19 March 2026 56