Registered number: 02025362 Charity number: 294640 THE READING FOUNDATION (A company limited by guarantee) TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025
THE READING FOUNDATION IA company limited by guarantee} CONTENTS Page Reference and administrative details of the Charity. its Trustees and advisers Trustees. report Independenl auditors. report on the financial ststements Statement of financial activities 10 Balance sheet Statement of cash flows 12 Notes to the financial ststements 13-25
THE READING FOUNDATION IA company limited by guarantee} REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY. ITS TRUSTEES AND MEMBERS OF THE COUNCIL AND ADVISERS FOR THE YEAR ENDED 31 JULY 2025 The organisation is a charitable company limited by guarantee, incorporated on 4 June 1986 and registered as a charity on 10 June 1986. Trustees and Members of the Council Mr D Hudson3 Mr J Mistry3 Mr T Evans1 Mr M Faulkner2 Mr T Follen2 Mr E Holll Ms M Murthy3 Mr D Nnabuife2 Mrs E S Fallon2 Dr J Matthews Mr R Childs, Chair Prof M Parsons, Vice Chair Mr A Phadnis Mrs C Toms Mr R Huggins MrA Robson Representative of the Reading School Alumni Representative of the Governors of Reading School Representative of the Reading School Current Parents Company reglstered number 02025362 Charlty reglstered number 294640 Reglstered offlce Reading School Erleigh Road Reading Berkshire RG1 5LW Company secretary Miss C Mole Independent audltors James Cowper Kreston Audit Chartered Accounlanls and Stslutory Auditor Apex Forbury Road Reading Berkshire RG1 IAX Page 1
THE READING FOUNDATION IA company limited by guarantee} REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY. ITS TRUSTEES AND MEMBERS OF THE COUNCIL AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2025 Bankers National Westminster Bank plc P.0. Box 78 13 Market Pla Reading RG1 2EP Solicitors Mr HJ Dellar Lee Bolton Monier-williams 1 The Sanctuary Westminster London SW1P 3JT Invg$tment Managor CCLA Investment Management Ltd COIF Charity Funds Senator House 85 Queen Victoria Street London EC4V 4ET Govorning In$trumgnts 1. The Reading FoLJndation 12946401 I'The Companl} is regulated by ils memorandum and articles of association dated 31 March 1986 as amended by special resolutions dated 2 November 1999., 20 September 2018 and 28 November 2019. 2. Reading School Charity 1294640-11 is regulated by a Charity Commission scheme dated the 4th of July 1994 as modified by an order of the Secretary of Slate for Education on the 9th of Mah 2011 when Reading School became an Academy. 3. Reading School Award Fund 1294640-21 is regulated by the scheme of the Charity Commission dated the 4th of July 1994. 4. The Young Bequesl1294640-31 is regulated by the scheme of the Charity Commission dated the 4th of July 1994. Appointment of Mgmbers and Trustees Trustees are appointed by the Foundation Council in accordance with the conditions sel out in their Articles of Association. Council includes not more than three persons from each of the alumni of Reading School and Parents of students attending Reading School at the time of their appointment. In addition, the Governors of the School may appoint no more than three persons. Council may co-opt Trustees. The Trustees are drawn from a wide range of backgrounds in education, professional life and welfare matters relevant lo the running and future benefit of the School. As such, il is not Considered neSSary for Trustees to undergo formal training for participation in the Foundation's Council. Members of the Council, as well as being charity trustees, are also directors of the Reading Foundation. Members of the Reading Foundation guarantee lo contribute an amount not exceeding £1 to the assets of the Foundation in the event of winding up. All members of the Council, the charills Trustees, give their services free of charge. The Clerk undertakes all the administrative work of the charity and maintains the accounting records. Page 2
THE READING FOUNDATION IA company limited by guarantee} TRUSTEES. REPORT FOR THE YEAR ENDED 31 JULY 2025 The Trustees, being also directors of the Reading Foundation, present their report, together with the financial statements of the Reading Foundation, for the year ended 31 July 2025. The report of the CoLJncil is also the directors. report as required by Part 15, chapter 5 of the Companies Act 2006 and the Trustees. report as required by Part Vlll of the Charities Act 2011. The financial statements comply with the requirements of the Charitable Companqs Memorandum and Articles of Association, the Charities Statement of Recommended Practice ISORP 20151 and Financial Reporting Standard 102 {FRS 1021. STRUCTURE. GOVERNANCE AND MANAGEMENT The Reading Foundation is managed in accordance with its Memorandum and Articles of Association {31 March 19861, as amended by a Special Resolution, dated 2 November 1999 and two others dated 20 September 2018 and 28 November 2019 respectively. The Reading Foundation is the trustee of the Reading School Charity, The Reading School Award Fund and the Young BeqLJest. All three are registered as linked charities to the Reading Foundation on the Register of Charities. An Order made by the Charity Commission on 5 October 1999 aulhorised the Reading Foundation to appoint an investment manager and a further Order made by it on 24 July 2003 enabled the Reading Foundation to operate a lolal return approach to ils investments in respect of the Reading School Charity for a limited period. The Council Ithe directors of the Reading Foundalionl are appointed in accordance with article 30. The Council meets 3 times year to discharge its duties as trustee and lo administer the Reading Foundation. The Reading Foundation relies on the powers in ils articles to administer the linked charities las provided for by the Scheme of 19941. The Council has the following sub-wmmittees.. Finance and Executive Committees which mel 3 limes in the year FINANCIAL REVIEW These accounts are the consolidated accounts for the Reading Foundation and the linked Charities, collectively 'The Foundation,. The Foundation's income consists of interest and income from units in a basket of Funds administered by CCLA. The structure of the Foundation's Funds, namely the Award Fund la pemianenl endowment restricted fund}, the School Charity Ipermanent endowment functional property with only net income available for applicalionl and the BEM Young Bequest {expendable endowmentl, has not changed during the year. The performance of the stock market represents the greatest identified risk lo the Foundation's wellbeing, but the diversity of the Funds. assets ¢ushions them from extremes of flu¢tuation. The perf0rrnan of the investment portfolio, wvering both capitsl appreciation and investment welds, is regularly monitored by the Finance Committee which reports to the Council. The capital appreciation of each of the three Funds in the ¢urrenl financial year was as follows= the Award Fund -10.4% the BEM Young bequest 1.2°/o and School Charity-2.5°/0. On 7th October 2024 the Council passed fresh resolutions under $104A of the Charities Act 2011 to adopt a Total Return approach to the investments of the Reading School Charity and the School Awards Fund. This resolution gives the Council all of the statutory powers in for from lime to time in relation lo the investment of the charities, funds on a total return basis. As a result a prior year adjustment has been processed through the accounts. OBJECTIVES AND ACTIVITIES The Reading School charity's charitable purposes are= Providing land and buildings for use as a school (including an Academy) as defined in section 578 of the Education A¢t 1996, and includes any regulations made under the Education Acts. The income lo be used lo provide benefits for the s¢hool not provided by public funds The Reading School Award Fund's charitable purposes are.. Promoting the education of the pupils in the School, children about lo attend the School and former pupils who attended the School for not less than 2 years in particular in awarding allowanS, leaving exhibitions and prizes Page 3
THE READING FOUNDATION IA company limited by guarantee} TRUSTEES. REPORT {CONTINUED} FOR THE YEAR ENDED 31 JULY 2025 The Young Bequest's charitsble objects are.. To provide benefits for the School not provided from public funds and to promote the education of pupils attending the School, children about lo attend and former pupils who attended for not less than 2 years The principal aim of the Reading Foundation is to advance the education of the public and, in particular, lo support Reading School {founded in 11251 now operating as an Academy, authorised under the Academies Act 2010. Education al the School is free at the point of delivery. The Reading Foundation is Trustee of the Reading School sile. The majority of the sile is leased to the Academy for a period of 125 years al a peppercorn rent whilst buildings that are wholly or partially used for residential accommodation are covered under a separate 20- year lease lo the Academy. Whilst the School is responsible for the maintenance of the site, where public funds are not available or, as is nomially the case, inadequate, each year the Trustee gives the School sums of money lo assist in pawng for that maintenance and for the development of the School's facilities. In 2024-2025 the Foundation committed £180,000 of funds for works on South House and the Chapel. An additional amount of £36,078 was allocated towards the Chapel repairs. All of this was drawn down by the School in the financial year. The Trustees continued lo work closely with the Headmaster and his Leadership Team during this year lo prudently manage expenditure during periods of market volatility. The objective of this cooperation being lo protect the assets of the Foundation for future generations of beneficiaries whilst maintaining essential funding for current needs. The Foundation continues lo fund the Society Office, a joint Trustee and School Governor initiative whose primary objectives are to establish and maintain a comprehensive record of the school community, lo create a feeling of belonging to this community and a benevolent allachment lo the School for life and to establish and foster a tradition of giving to the School and the Foundation amongst this community. For the financial year 2024-2025, the Reading Foundation agreed to additional funding of £30,000 towards 900th Anniversary costs. As 2025 was the year of the 900th Anniversary, the Foundation agreed to reduce the amount allocated to the school for capital projects and instead help fund the costs of the 900th Anniversary by agreeing to commit £100,000. ACHIEVEMENTS AND PERFORMANCE The Foundation mel ils charitable objectives in the year by continuing lo support the work of Reading School as demonstrated by the activities outlined above. PLANS FOR THE FUTURE To progress the Development and Funding initiative so that a culture of philanthropy becomes embedded in the ethos of the School. RESERVES POLICY Cash al bank and monies on deposit represent working capitsl available for grants and administrative expenditure ahead of income at certain times of the year and for contingencies. At 31 July 2025 the charity held unrestricted reserves of £3,648,699. On an annual basis, Trustees calculate the capitsl 'surplus" of the School Charity and Award funds compared lo a benchmark of the original values of these ftjnds {in 1994 and 1995 respectively) adjusted for CPI. This guides their view of the capacity of the Foundation lo fund spend from capital and has been used to allocate the unapplied total return for the permanent endowment. Page 4
THE READING FOUNDATION IA cornpany limited by guarantee) TRUSTEES, REPORT ICONIINUED) FOR THE YEAR ENDED 31 JULY 2025 PUBUC BENEFIT The Trustees have acted in accordance with the information contained in the Charity Commission's general guKlance on public benefrt when carrylng out Ihe purposes of the Foundation and in planning its actiiAties. RESPONSIBIUTIES OF THE COUNCIL The Trustees (who are also directors of The Reading Foundation for purposes of Company Law) are responsible for plppgring the Report of the Counal and the financial statements in accordan with applicable law and United Kingdom Accounting Standards {United knngdom Generally Accepted Accounting Practice). Company law requires the Trustees to prep8re financial statements for each financi81 year which give a tTue and fair TeW of the state of affairs of the Reading Foundation and of the incoming resources and application of resources, induding the income and expenditure, of the Reading Foundation for that period. In preparing these financial statements, Ihe twstees a required to- Select suitable accounting poliGies And apply them consistenlly- State whether applicable acry)unting standands have been followed. subject to any material departures disclosed and explained in the finanaal statements., Make judgements and estimates that are asOnable and prudent., Prepare FinancAal Statements on a going concem basis unless thks is insrOpriate to presume that the Reading Foundation will continue to operate. The Trustees atE rebpoiisible for keeping propef and adequate accounting reGords that dssclose with reasonable accuracy at any time the financial position of the Reading Foundation and enable them to ensure that the financial statements comply with the Companie5 Act 2006. They afe also tESPOll5ible for safeguarding the assets of the Reading Foundation and hence for taking reasonable steps for Ihe prevention and detection of fraud and other IrregularitS. In so far as the Trustees are aware- There is no relevant audit infomiation of which the Reading Foundation's auditor is unaware.. and The Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit informalion and to establish that the auditor is aware of that infomiation. AUDITORS The auditors, James Cowper Kreston Audit. will be proposed for re-appointmellt at the forthcoming Annual General Meeling. Approved by order of the member5 of the boalll of Trustee5 and svJned on their behalf by.. MYRChi Chaimian ds Date.. 20 November 2025 Page 5
THE READING FOUNDATION IA company limited by guarantee} INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE READING FOUNDATION Opinion We have audited the financial statements of The Reading Foundation (the 'charitable companll for the year ended 31 July 2025 which Comprise the Statement of financial aclivilies, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland. (United Kingdom Generally Accepted Accounting Practi1. In our opinion the financial statements.. give a true and fair view of the slate of the charitable companls affairs as at 31 July 2025 and of ils incoming resources and application of resour8, including its income and expenditure for the year then ended., have been properfy prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS {UKI} and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant lo our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate 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 performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable companls ability lo 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 lo going concern are described in the relevant sections of this report. Page 6
THE READING FOUNDATION IA company limited by guarantee} INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE READING FOUNDATION ICONTINUEDI Other information The other information comprises the information included in the Annual report other than the financial ststemenls and our Auditors. report thereon. The TrLJStees are responsible for the other infomiation contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except lo the extent otherwise explicitly slated in our report, we do not express any form of assuran conclusion Ihereon. Our responsibility is lo read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misslatemenl in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing lo report in this regard. Opinion on othgr mattors prgscribgd by the Companies 1 2006 In our opinion, based on the work undertaken in the course of the audit= the infomialion given in the Trustees. Report for the financial year for which the financial statements are prepared is consistent with the financial statements. the Trustees, Report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of our knowledge and understanding of the charitable company and its environment obtained in the Course of the audit, we have not identified material misstalemenls in the Trustees. Report. We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us lo report to you if, in our opinion.. adequate accounting records have not been kept, or retums adequate for our audit have not been received from branches not visited by us,. or the financial statements are not in agreement with the accounting records and returns,. or certain disclosures of Trustees, remuneration specified by law are not made., or we have not received all the information and explanations we require for our audit., or the Trustees were not entitled lo prepare the financial statements in accordance with the small companies gime and take advantage of the small companies, exemptions in preparing the Trustees, Report and from the requirement to prepare a Strategic Report. Responsibilities of trustees As explained more fully in the Trustees, responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such intemal control as the Trustees determine is necessary lo enable the preparation of financial statements that are free from material misstatement, whether due to fraud or Èrror. In preparing the financial statements, the Trustees are responsible for assessing the charitable companls ability lo continue as a going concem, disclosing, as applicable, matters related to going concern and using the going concem basis of accounting unless the Trustees either intend to liquidate the charitable company or lo cease operations. or have no realistic alternative but to do so. Page 7
THE READING FOUNDATION IA company limited by guarantee} INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE READING FOUNDATION ICONTINUEDI Auditors. responsibilities for the audit of the financial Statgmgnts 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 Auditors. report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detert 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 lo influence the economic decisions of users taken on the basis of these financial ststemenls. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstalemenl in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional COnalMent, forgery, collusion, omission or misrepresentation. The specifi¢ prOdureS for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fraud, were as follows.. Enquiry of management and those charged wtth governance around actual and potential litigation and claims- Reviewing minutes of meetings of those charged with governance. Reviewing financial stslemenl disclosures and lesling lo supporting documentation to assess compliance with applicable laws and regulations., Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. A fLJrther description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website al.. www.frc.or .uklauditorsres onsibilities. This description forms part of our Auditors. report. Page 8
THE READING FOUNDATION IA company limited by guarantee} INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE READING FOUNDATION ICONTINUEDI U$9 of our rgport This report is made solely to the charitable ¢ompan¥s members, as a body, in ac¢ordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might slate to the charitable ¢ompanls members those matters we are required to stste lo them in an Auditors. 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 charitable company and ils members, as a body, for our audit work, for this report, or for the opinions we have formed. Darren O'connor Bsc {Hons) ACA FCCA {Senior Statutory Auditor) for and on behalf of James Cowper Kreston Audit Chartered Accountants and Stslutory Auditor Apex Forbury Road Reading Berkshire RG1 1AX Dale.. 1 December 2025 Page 9
THE READING FOUNDATION IA company limited by guarantee} STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 JULY 2025 Endowment funds 2025 Restricted Unrestricted funds funds 2025 2025 Total funds 2025 Total funds 2024 Notg Income and endowments from: Donations and legacies Investments 26,375 46.574 342,465 15.730 368,840 148.069 20,588 149,943 85.765 Total income and endowments 85,765 72,949 358,195 516,909 170,531 Expenditure on- Charitable activities 455,068 117,083 572,151 399,612 Total expendlture 455.068 117.083 572.151 399,612 Net {expenditure)lincome before net {lossesllgains on investments 1369.3031 144.1341 358,195 155.2421 1229,0811 Nel Ilossesllgains on investments (69.4731 18.759 5.225 (45.4891 341,478 Net lexpenditurell income Transfers between funds 1438.7761 125,3751 363.420 1100.731) 112,397 12 437,352 25,375 1462.7271 Net movement In funds 11.424) (99.307) 1100.731) 112,397 Reconclllatlon of funds: As restated total funds brought forvlard Nel movement in funds 1,101,424 11,4241 138,000 3,748,006 199,3071 4,987,430 1100,7311 4,875,033 112,397 Total funds carrled forward 1,100.000 138.000 3,648.699 4,886.699 4,987,430 The Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 13 to 25 form part of these financial statements. Page 10
IHE READING FOUNDATION IA company limited by guarantee) REGISTERED NUMBER: 02025362 BALANCE SHEET AS AT 31 JULY 2025 2026 2024 Note Fixed assets Investments 3,979,620 4,512,502 3,979,620 4.512,592 Current assets Debtors Cash at bank and in hand 10 31,084 934.762 33.406 451.182 965.846 484,588 Current liabilities Creditots: amounls falling due within one year (58.7671 (9,750) Net current assets Ilobilities 907,079 474,838 Totsl assets less ¢urrent liabilities 4886,699 4.987.430 Total net assets 4,886,699 4.987,430 Charity funds Endowmenl fvnds Restricted funds Unrestricted funds 12 12 12 1,100,000 138,000 3,648,699 1.101,424 138,000 3,748.006 Total funds 4,886,699 4,987,430 The Trustees acknowledge their responsibilities for complying with the requiren*nts of the Act wilh respeci to acGounling records artd pparatIOn of financial stalements. The financlal statements have be¥ii wepared itt a(LotdanrR with the provisions applicable to entities SLtbjcct to the small companies regime. Tre financ4al statements were approved and authorised for issue by the Trustees and signed on their bèhalf by: MrRC Chairman Date.. 20 November 2025 The notes on pages 13 to 25 form part ofthese financial ststements. Page11
THE READING FOUNDATION IA company limited by guarantee} STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2025 2025 2024 Cash flows from operatlng actlvltles Nel cash used in operating activities 1150,8701 1340,0931 Cash flows from Investlng actlvltles Dividends, interests and rents from investments Proceeds from sale of investments 146,967 487,483 170,531 313,000 Net cash provlded by Investlng actlvltles 634.450 483.531 Change In cash and cash equlvalents In the year 483,580 143.438 Cash and cash equivalents at the beginning of the year 451,182 307,744 Cash and cash equlvalents at the end ofthe year 934.762 451,182 The notes on pages 13 to 25 form part of these financial statements Page 12
THE READING FOUNDATION IA company limited by guarantee} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025 Genoral information The Reading Foundation is a charitsble company limited by guarantee. Its registered office is Reading School, Erleigh Road, Reading, Berkshire, RG1 5LW. Accounting policigs 2.1 Basis of preparation of financial statements The financial statements have been prepared in accordan with the Charities SORP IFRS 1021 Accounting and Reporting by Charities.. Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffeclive 1 January 20191, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. The Reading Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless othenNise staled in the relevant accounting policy. The financial statements are presented in pounds steding l£} rounded to the nearest pound. 2.2 Company status The members of the company are the Trustees named on page 1. In the event of the charitable company being wound up, the liability in respect of the guarantee is limited lo £1 per member of the charitable company. 2.3 Going concern The charitable company hold sufficient liquid assets to cover commitments made by the trustees at the balance sheet date. Operational expenditure is minimal, grants are discretionary and are proposed by the Finance Committee based on expected investment retums. After making enquiries, the trustees have a reasonable expectation that the charitable company has adequate resources to continue its activities for the foreseeable future. Accordingly, they continue lo adopt the going concern basis in preparing the financial statements as outlines in the statement of Responsibilities of the Council. 2.4 Land and buildings The land and buildings known as Reading School is an asset for the School Charity and is leased lo the Academy under a 125 year lease at a peppercorn rent. As such the value has not been included in the value of the fund. Residential and associated accomm(Idation, which includes boarding houses and staff accommodation, is subject to a supplementary 20 year lease at a peppercom rent. The lease is granted on terms similar lo the main lease. Subject to a number of assumptions the market value of the Foundation's interest assuming ils continued educational use and the leases in place is £70,000. This value has not been included in the Balance Sheet. The land and buildings are insured for a value of £34.350,000. Page 13
THE READING FOUNDATION IA company limited by guarantee} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025 Accounting poli¢ig$ l¢ontinugdl 2.5 Income All income is recognised once the Company has entitlement lo the income, il is pmbable that the income will be received and the amount of income receivable can be measured reliably. Income largely arises from investment income generated from dividends from CCLA funds, and they are awounled for when the dividends are actually declared. Investment income and gains are allocated to the appropriate fund. The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Company has sufficient evidence that a gift has been left lo them Ilhrough knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. ReIpl of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount lo be distributed lo the Company, can be reliably measured. 2.6 Expgnditurg Expenditure is rewgnised once there is a legal or ¢onstrudive obligation to transfer economic benefit to a third paty, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable lo a single activity are allocated directly to that aclivily. Shared costs which contribute to more than one activity and support costs which are not attributable lo a single activity are apportioned between those activities on a basis consistent with the use of reSoUrs. Central staff costs are allocated on the basis of time spent, and depreciation Charges allocated on the portion of the asset's use. Governance costs are those incurred in connection with administration of the charitable company and Complian with constitutional and statutory requirements. Charitable activities and Govemance costs are costs incurred on the charitable company's operations, including support costs and costs relating to the governance of the charitable Company apportioned to charitable activities. Grants payable are charged in the year when the offer is made expt in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been mel at the year end are noted as a commitment, but not a¢crued as expenditure. 2.7 Invgstmgnts Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value al the Balance sheet dale, unless fair valLJe cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading 'Gainslllossesl on investments, in the Statement of financial activities incorporating income and expenditure account. 2.8 Dgbtors Trade and other debtors are recognised al the settlement amount after any trade discount offered. Prepayments are valued al the amount prepaid net of any trade discounts due. Page 14
THE READING FOUNDATION IA company limited by guarantee} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025 Accounting poli¢ig$ l¢ontinugdl 2.9 Cash at bank and in hand Cash at bank and in hand includes cash and short-lerm highly liquid investments with a short maturity of three months or less from the dale of a¢quisition or opening of the deposit or similar account. 2.10 Liabilitigs and provisions Liabilities are re¢ognised when there is an obligation al the Balan sheet dale as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be eslimaled reliably. Liabilities are recognised at the amoLJnt that the Company anticipates il will pay to sellle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required lo settle the obligation. Where the effect of the time valLJe of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability- The unwinding of the discoLJnt is recognised in the Slalement of financial activities as a finan cost. 2.11 Financial instrumgnts The charitable company only has financial assets and financial liabilities of a kind that qualify as basic financial instrLJments. Basi¢ financial instruments are initially recognised at transaction value and subseqLJently measured al their settlement value with the exception of bank loans which are subsequently measured al amortised cost using the effective interest method. 2.12 Taxation The Company is considered lo pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore il meets the definition of a charitable company for UK corporation tsx purposes. Accordingly, the Company is potentially exempt from taxation in respect of income or capital gains reiVed within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the exlenl that such income or gains are applied exclusively to charitable purposes. 2.13 Fund accounting General funds are unreslricled funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes. Restricted funds are funds which are to be used in accordan with specific restrictions imposed by donors or which have been raised by the Company for particular purposes. The costs of raising and administering su¢h funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes lo the financial statements. Investment income, gains and losses are allocated to the appropriate fund. Endowed funds consist of a permanent endowment and an expendable endowment. A total retum approach has been adopted for these funds. Page 15
THE READING FOUNDATION IA company limited by guarantee} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025 Critical accounting ostimatgs and argas of judgmgnt Eslimales and judgments are Continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Critical accounting estimates and assumptions.. The Company makes estimates and assumptions Conrning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actLJal results. The estimates and assumptions that have a significant risk of causing a material adjustment to the Carrying amounts of assets and liabilities within the next financial year are discussed below. Incomg from donations and lega¢ig$ Rgstricted Unrgstrictod funds funds 2025 2025 Total funds 2025 Total funds 2024 Donations Legacies 11,090 15,285 342,465 353,555 15.285 20,588 26,375 342,465 368,840 20,588 Total 2024 19,978 610 20,588 Investment income Endowment funds 2025 Restricted Unrestricted funds funds 2025 2025 Total funds 2025 Total funds 2024 Investment income Bank interest received 85,765 35,237 11,337 1,301 14,429 122,303 25.766 132,304 17,639 85,765 46,574 15,730 148,069 149,943 Total 2024 85,585 50,648 13,710 149,943 Page 16
THE READING FOUNDATION IA company limited by guarantee} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025 Analysis of grant$ and other costs Grants to Grants to Institutions Individuals 2025 2025 Totsl funds 2025 Total funds 2024 Grants awarded 103,000 7,000 110.000 120,950 Total 2024 105,950 15,000 120,950 Grants awarded 2025 2024 Grants to Institution$ Reading School Awards and Senior Prizes 103,000 105,950 103,000 105,950 Grants to Indlvlduals Enrichment programme 7.000 15,000 7.000 15,000 Other grants and other costs Unrestricted funds 2025 Total funds 2025 Total funds 2024 Building fund project School maintenance 180,000 36,078 80,000 137,500 180,000 36,078 80,000 137.500 88,000 80,001 30,000 60,000 Development grant 900th Anniversary Advance write off Total 2025 433,578 433,578 258,001 Total 2024 258,001 258,001 Page 17
THE READING FOUNDATION IA company limited by guarantee} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025 Govornance costs Unrgstrictgd funds 2025 Total funds 2025 Total funds 2024 Audit fees Legal and professional fees Other indirect costs Clerks, fees 11,530 7,985 58 9,000 11,530 7,985 58 9.000 9,501 60 11,100 Total 2025 28,573 28,573 20,661 Total 2024 20,661 20,661 Analysis of expenditure by activities Charity direct costs 2025 Grant Governance funding costs 2025 2025 Total funds 2025 Total funds 2024 Expenditure 433,578 110,000 28,573 572,151 399,612 Total 2024 258,001 120,950 20,661 399,612 Page 18
THE READING FOUNDATION IA company limited by guarantee} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025 Invg$tmonts General Funds Young BgqUOSt Endowed Funds School Charity Restricted Funds Award Fund Total funds Total funds 2024 Balance at 1 August 2024 Disposals Unrealised gainslllossesl 1,263,079 {600,3051 131,581 451,696 2,797,882 4.512,657 1600,3051 67,333 4,484,114 {313,0001 341,478 5,225 169.4731 Balanca at 31 July 2025 794,355 456,921 2,728,409 3,979,685 4,512,592 Historical Cost of Investments 1,263,014 451,696 2,797,882 4,512,592 At the 31 July 2025 all of the above investments are held in funds managed by CCLA. Debtor$ 2025 2024 Due within one year Prepayments and accrued income 31,084 33,406 31.084 33,406 11. Creditors- Amounts falling due within one year 2025 2024 Accruals 10,300 48,467 9,750 Grant Commitments 58,767 9,750 Page 19
THE READING FOUNDATION IA company limited by guarantee} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025 12. ststgmgnt offunds ststement offunds - curront ygar Restatgd Balance at 1 August 2024 Transfers inlout Gainsl Balance at ILos$g$) 31 July 2025 Incom& Expenditure Unrestrlcted funds General Funds Young Bequest 3.279,793 468.213 358.195 {462.7271 3,175.261 473.438 5.225 3,748,006 358,195 (462,7271 5,225 3,648,699 Endowment funds School Charity lQueens Road) Pemanenl School Charity lQueens Road) 1.100,000 1,100.000 1,424 85,765 1455,0681 437,352 169,4731 1.101,424 85.765 1455,0681 437.352 169,4731 1,100.000 Restrlcted funds Award FLJnd 138,000 72,949 1117,0831 25,375 18,759 138,000 Total of funds 4.987,430 516.909 1572.1511 145,4891 4,886.699 Page 20
THE READING FOUNDATION IA company limited by guarantee} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025 12. ststgmgnt offunds (Continued) ststement of funds - prior ygar As restated Balan al 1 August 2023 As restated Gainsl Balance at (Losses) 31 July 2024 Transfers inlout Income Expenditure Unrestrlcted funds General Funds Young Bequest 1,794,018 399,004 1,485,775 9,134 3,279,793 468,213 14,320 45,755 2,193,022 14,320 1,494,909 45,755 3,748,006 Endowmgnt funds School Charity lQueens Road) Pemanenl 1,100,000 1,100,000 School Charity lQueens Road) 1,848 85,585 1271,929) 19,1341 195,054 1,424 1,101,848 85,585 1271,9291 19,1341 195,054 1,101,424 Restrlcted funds Award FLJnd 1,580,163 70,626 1127,6831 11,485,775) 100,669 138,000 Total of funds 4,875,033 170,531 1399,6121 341,478 4,987,430 Page 21
THE READING FOUNDATION IA company limited by guarantee} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025 12. ststgmgnt offunds (Continued) Purpose of thg endowmont funds School Charity - Quegns Road The School Charity (Queens Road) is a pemianenl endowment in which Iruslees may apply the clear income in providing benefits for the school for which provision is not made from public funds. Restricted funds Award Fund The income from the investments of the fund is to be used in promoting the education of pupils allending Reading School, children who are about lo attend the school and former PLJpils who have attended the school for not less than two years by awarding allowances, exhibitions and prizes. Unrg$tri¢tgd funds Thg Young Bgqugst The trustees can apply the clear income and al ils discretion the whole or part of the property of the Young Bequest in the following ways.. al In providing benefit for the school for which provision is not made from public funds. bl In promoting the education of pupils attending Reading School, children who are about lo allend the school and former pupils who have attended the school for not less than two years. Transfgrs A special resolution was passed on 7 October 2024 which confirmed that the Award Restricted Fund should be held al its original value of £138,000. The excess has been transferrd to the General Unreslricled Fund. Page 22
THE READING FOUNDATION IA company limited by guarantee} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025 Summary offunds Summary offunds- Qu9nt ygar Balance at 1 August 2024 Transfers inlout Gainsl Balance at (Losses) 31 July 2025 Incom& Expenditure General funds Endowment funds Restricted funds 3.748,006 358.195 {462.727) 5,225 3,648.699 1,101,424 138,000 85,765 72.949 1455,0681 1117,0831 437,352 25.375 169,4731 18,759 1,100,000 138.000 4,987,430 516,909 1572,1511 145,4891 4,886,699 Summary offunds - prior year Balan at 1 August 2023 Transfers inlout Gainsl Balance at (Losses) 31 July 2024 Income Expenditure General funds Endowment funds Restricted funds 2,193,022 14,320 1,494,909 45,755 3,748,006 1,101,848 1,580,163 85,585 70,626 1271,9291 19,1341 1127,6831 11,485,775) 195,054 100,669 1,101,424 138,000 4,875,033 170,531 1399,612) 341,478 4,987,430 14. Analysis of net assets between funds Analysis of net assets between funds - current year Endowment funds 2025 Restricted Unrestricted funds funds 2025 2025 Total funds 2025 Fixed asset investments 1,100,000 138,000 2,741,620 965,846 158,7671 3,979,620 965,846 (58.767) Current assets Creditors due within one year Total 1,100,000 138,000 3,648,699 4,886,699 Page 23
THE READING FOUNDATION IA company limited by guarantee} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025 14. Analysis of ngt assets betwegn funds {¢ontinuodl Analysis of ngt as$gt$ betwggn funds - prior ygar Endowment funds 2024 Restricted Unrestricted funds funds 2024 2024 Total funds 2024 Fixed asset investments Current assets Creditors due within one year 1,101,424 138,000 3,273,168 484,588 19,7501 4,512,592 484,588 19,7501 Total 1,101,424 138,000 3,748,006 4,987,430 15. Reconclllatlon of net movement In funds to net cash flow from operatlng actlvltles 2025 2024 Nel incomelexpenditure for the year 18s per Statement of Financial Acliviliesl 1100,7311 112,397 Adjustments for: Gainsl{losses) on investments Dividends, interests and rents from investments Decrease in debtors 45,489 1146,9671 2,322 49,017 1341,4781 1170,5311 59,019 500 Increase in creditors Net cash used In operatlng actlvltles 11 $0,870) 1340,0931 16. Analysis of cash and cash equivalents 2025 2024 Cash in hand 934.762 451,182 Total cash and cash equlvalents 934,762 451,182 Page 24
THE READING FOUNDATION IA company limited by guarantee} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2025 Analysis of Changes in ngt d&bt At 1 August 2024 Cash flows At 31 July 2025 Cash at bank and in hand 451,182 483,580 934,762 451.182 483.580 934.762 18. Related party transactions Reading School has common directors with the Reading Foundation. Total donab'ons and grants of £433,57812024.. £318,751) were made to Reading School in the current year. None of the members of the council received any remuneration or were reimbursed any expenses {2024.. £Nill. Page 25