coLLective weLLbeing Carnegie UK Annual Report and Accounts FOR THE YEAR ENDED 31 DECEMBER 2025 ANDREW CARNEGIE HOUSE pirrENCRIEFF STREET DUNFERMLINE FIFE KY12 8AW www.carnegieuk.org.uk The Carnegle Unlted Klngdom Trust Incorporated by Royal Charter 1917 Registered Charity No.. SC 012799 operating in the UK Registered Charity No.. 20142957 operating in Ireland
Trustees, Staff and Advisers Trustees David Emerson CBE (Chairl Rachel Doyle Dr Colin Firth Mohammad Jamei Megan Mathias MBE lur)til June 20251 George Murray Christine McLaughlin CBE. Iconvener of the Finance and Corporate Services (Executive) Committee) Claire Mccolgan CBE Dr Laura Zahra McDonald' Professor Duncan Morrow. WiLliam Perrin OBE. Mike Reid (until June 20251 Trewin Restorick Ifrom June 20251 Professor Mark Shucksmith OBE. (Deputy Chair & Convener of the Audit and Risk Committeel Dr Ruth Strain Andrea Westall (from September 2025) 'Audit and Risk Comn7ittee Members Ke mana ement ersonnel Sarah Davidson C8 - Chief Executive Adam Lang - Director of Policy, Insight and Advocacy Gillian Donald - Head of Finance. Governance and Risk Lucy Smith - Head of Corporate Services stuart Mackinnon - Head of Communications and Advocacy Susan Pinkney - Head of Research and Insight Advisers External auditor Henderson Loggie LLP, The Stamp Office, Level 5, lo-u Waterloo Place, Edinburgh, EHI 3EG Investment managers Sarasin & Partners LLP. Juxon House. loo St Paul's Churchyard, London, EC4M 8BU Bankers Royal Bank of Scotland, 50-54 East Port. Dunfermline KY12 7HB Legal/professional advisers Lindsays LLP. Caledonian Exchange. 19A Canning Street. Edinburgh. EH3 8HE Pension advisers Titan Wealth Planning Limited, 3 Temple Quay. Temple Back East, Bristol, BSI 6DZ HR advisers EVH Limited. 137 SauchiehaLL Street. Glasgow, G2 3EW
The Carnegie United Kingdom Trust Report of the Trustees for the year ended 31 December 2025 The Trustees present their report with the accounts of the Trust for the year ended 31 December 2025. The accounts have been prepared in accordance with the accounting policies set out on pages 19 to 22 and comply with the Royal Charter 1917, the Charities and Trustee Investment (Scotlandl Act 2005, the Charities Accounts IScotLandl Regulations 2006 las amended) and the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard appLicable in the UK and Republic of Ireland IFRS 1021. Introduction The Carnegie United Kingdom Trust was set-up as an independent not-for-profit foundation in 1913, through an initial endowment of $iom, donated by the philanthropist Andrew Carnegie, who was born in Dunfermline. The Trust was incorporated by Royal Charter in 1917 and is a registered Charity.. No.. SC 012799 operating in the UK and No.. 20142957 operating in Ireland. The work of the Trust is non-partisan and dedicated to improving the wellbeing of the people of the UK and the Republic of Ireland and is one of over twenty Carnegie foundations and institutes worLdwide. The Trust has a strong commitment to the exchange of ideas within the jurisdictions of the UK and Republic of Iretand. The Aims of the Trust The remit of the Trust (Carnegie UKI has been the same since it was endowed in 1913, although the approach has changed over time in line with our founder's encouragement to update our methods to meet the needs of the day. We are now an operating foundation, using our resources to fund policy and advocacy work, and partnering from time to time with other organisations who share our goals. Trustees are committed to a regular review of the impact of the organisation's activities in pursuit of its strategic goals. There is a five-year strategic cycle, underpinned by ongoing reviews of the programme portfo0. One of the strengths of Carnegiè UK is its commitment to a thoughtful and proportionate ptanning process, while retaining the flexibility to respond to urgent issues which may arise. 2026 marks five years since the publication of our current strategy. During 2025. Carnegie UK staff and trustees undertook a review of learning and progress to date to inform our approach going forward. This was informed by a substantial survey of organisationaL stakeholders, as well as desk-based analysis ofour operating environment, identifying future challenges and opportunities. At the start of 2026, the Trust intends to review its policy and research programme for the coming period, in line with our ambitions for this next phase of strategic impact.
The Carnegie United Kingdom Trust Report of the Trustees for the year ended 31 December 2025 Carnegie UK'S work in 2025 During 2025. Carnegie UK undertook a wide range of activities in support of our strategic objectives.. Life in the UK Index In October 2025, Carnegie UK published the latest findings from the Life in the UK Index, continuing our work to measure the collective wellbeing of people across the UK. Now in its third year, the Index is starting to build a longer-term picture of what life is like for people living in the UK. While there are some signs of progress. the 2025 results show that Life in the UK continues to be marked by persistent inequalities and stagnating wellbeing. Alongside the UK-wide findings. Carnegie UK produced jurisdictional reports for EngLand, Scotland, Wales and Northern Ireland. Working with partners. we hosted an online event to share the results and engage stakeholders in discussions about wellbeing policy. To support greater accessibility and engagement with the data, Carnegie UK developed a new Data Dashboard in 2025. This interactive online tool enables users to explore wellbeing trends across jurisdictions and demographic groups. It provides a clear. visual way to understand wellbeing outcomes across the social, economic, environmental and democratic dimensions of life. offering a valuable resource for policymakers, researchers and practitioners. The Life in the UK research continues to be referenced by government and elected representatives, In 2025. we delivered substantial government outreach associated with this programme, leading to new relationships with teams in multiple government departments across the UK. Communications and Advocacy In 2025. Carnegie UK delivered a broad range of communications and advocacy activity to further our strategic objective of putting wellbeing at the heart of decision making, In 2025 we benchmarked awareness of and regard for Carnegie UK'S work with key stakeholders by engaging social research agency The Lines Between. This work has been used to inform the future direction of our communications and advocacy programme as weLI as informing the trust's overall broad goals for the coming years. We have atso added to our capacity on communications and public affairs to help us deliver more external- facing activities. During the year. we submitted evidence to Senedd, Scottish Parliament and Westminster committees on issues of reLevance to our work. In addition, we supported three external policy events.. the CLES conference in Manchester. the IPPR Scotland io-year anniversary event in Edinburgh, and the Re'.State conferènce in Liverpool- alL of which allowed us to reach new audiences and build useful relationships. We delivered a wide range of media relations work including opinion pieces placed in publications such as The Times. The Yorkshire Post and Civil Service News. This programme also supported new activity with the Institute of Welsh Affairs to investigate the impact of the WeLI-being of Future Generations Act 2015.
The Carnegie United Kingdom Trust Report of the Trustees for the year ended 31 December 2025 Carnegie UK'S work in 2025 (continued) Engaging Democracy Phase two of the Engaging Democracy programme was a major focus of our work in 2025. Carnegie UK aims to bring a distinctive perspective to this field, assessing impact through improved decision-making. stronger policy development and a deeper exercise of voice and choice by people across the UK, This phase of the programme focuses on exposing elected representatives- primarily Parliamentarians - to deliberative processes, The aim is to demonstrate the quality of public debate possible within these forums, the insights that deliberation can contribute to policy development. and the positive impact that participation can have on individuals. By engaging eLected officials directly in these processes and supporting their adoption within parliamentary settings, we believe that it is possible to strengthen overaLI democratic welLbeing. To inform this work, our policy team is collaborating with academic partners at the Universities of Edinburgh and Newcastle to produce an advocacy paper which expLores different approaches to deliberative democracy in more detail. A programme of roundtables, events and webinars is planned for early 2026. In 2025 we also partnered with Demos to support their collaborative democracy network Financing the Future In 2025, Carnegie UK hosted four roundtable discussions in Glasgow, Cardiff, Newcastle and Belfast. These convened experts from academia. business, economics. government, pubLic policy and the third sector to explore some of the most significant fiscal policy challenges facing the UK Ahead of these discussions, we published a paper with Carnegie UK Associate Eleanor Ryan summarising tax and spend trends and projections across the UK'S nations and highlighting key wellbeing-related issues identified through our annual Life in the UK index. The paper also explored the idea of a renewed social contract between citizens and the state as a foundation for raising and spending public money more effectively. The roundtables examined shared policy themes and identified successful approaches from across the UK. Key insights were synthesised in a report published in September 2025. We also partnered with The Social Agency to explore public understanding and perceptions of taxation across the UK, This research shows that dominant perceptions of tax and spend - that it is not fair, not delivering, and not something the public can change- are negative and entrenched. We identified the need for practical and actionable guidance to support governments seeking to better embed wellbeing approaches in spending and finance. Dr Cressida Gaukroger produced a paper for Carnegie UK which examines gLobal examples. innovative tooLs. and emerging practices that have the potential to transform public spending.
The Carnegie United Kingdom Trust Report of the Trustees for the year ended 31 December 2025 Carnegie UK'S work in 2025 (continued) Poverty Truth Network programme In 2025, our partnership with the Poverty Truth Network focused on integrating learning into other Carnegie UK programmes and further developing practice in using a spectrum of evidence to engage decision makers. This collaboration has reinforced the importance of lived experience in shaping policy, particularly the power of storytelling and personal testimony alongside statistical evidence to bring issues to life and strengthen the case for change. Wellbelng Frameworks programme In 2025, we established a Community of Practice for officiats across the UK working on wellbeing frameworks and similar initiatives, Members come from the Scottish Government, Welsh Government, Northern Ireland Executive. the Office for National Statistics IONSI, Camden Council, and the North East Combined Authority. A wellbeing framework is a tool that helps governments, organisations, or communities make better decisions by focusing on what people need to live well, now and in the future Under the auspices of this programme. we have also engaged with proposed wellbeing legislation in Scotland and contributed to a review of the Scottish Government's National Performance Framework. Carnegies. 2025 gathering In May 2025. Carnegie UK played a key role in delivering a series of events in Edinburgh and Dunfermline which brought together Carnegie institutions from across the UK, Europe and the USA. This was an opportunity to reflect on Andrew Carnegie's enduring legacy and the continued relevance of his values in addressing todays challenges. Highlights included a keynote address by former Prime Minister Gordon Brown and an awards ceremony hosted jointly by the UK-based Carnegie institutions to honour outstanding global philanthropists with the Carnegie Medal of Philanthropy. The 2025 medallists incLuded Carol Colburn Grigor CBE., Barbara and Amos Hostetter,. and Joe Neubauer and Jeanette Lerman-Neubauer, each recognised for their significant contributions to the arts, education, climate action and community wellbeing. A special Carnegie Catalyst Award was also presented to Comic Relief. ceLebrating its remarkable impact in Mobising public generosity and raising more than £1.6 billion to tackle poverty and injustice. The 2025 gathering strengthened collaboration across the international Carnegie family and provided valuable space to share Learning, recognise collective achievements and reaffirm a shared commitment to improving weLlbeing,
The Carnegie United Kingdom Trust Report of the Trustees for the year ended 31 December 2025 Learning about change Evidence of impact: At Carnegie UK. we accept that systemic public policy change requires Long-term commitment and working in partnership with a range of organisations and individuals. We will rarely be able to evidence poLicy change within a single financial year. However. evidence of our ongoing impact as an organisation includes.. Widespread muLti-jurisdictional interest in our Life in the UK Index, with engagement with officials and elected members in UK, devolved, regional and local government. In addition, we saw substantial media interest in our work in England, Scotland. Wales. Northern Ireland and UK-wide. Evidence that convening activity delivered as part of our Financing the Future programme Led to new policy relationships and opportunities for innovation, Our 2023 Cost of living research was referenced at Prime Minister's Questions and our Life in the UK Index at First Minister's Questions in Scotland. In addition, our stakeholder survey re-affirmed the value of our organisational independence, political neutrality and ongoing reputation for rigorous and high-quality research and network building. We believe we have a growing List of credible and influential partner organisations across the UK and Ireland that vaLue our work and engagement lincluding Demos, Re'.State, CLES, New LocaL, IWA, Pivotall. We are increasingly well positioned and recognised by our peers as part of the policy eco-system focussed on government process, practice and system change. Organisational development We continue to commit resources to modernisation, learning and continuous improvement within Carnegie UK. This included.. Risk management We continued to deepen our practice in the identification and management of risk. In the course of 2025. we assessed our enierging risks in relation to the various aspects of our strategy and operations and have now embedded this within our existing risk management framework which is set out in more dÈtaiL in the financial section of this report. Modernlsing our governance In 2025, we sought specialist legal advice in relation to our 1917 Royal Charter. the key reference document in relation to the governance of Carnegie UK. This process identified that the Charter could and should be modernised to reflect current good practice in matters of trust governance and charity law which have evolved in several respects since the Last revision twenty years ago. The Board of trustees approved the proposed changes which have now been presented to the Privy Council for consideration early in 2026.
The Carnegie United Kingdom Trust Report of the Trustees for the year ended 31 December 2025 Organisational development (continued) The trustee body In 2025. two trustees retired from the Board of Carnegie UK.. Mike Reid and Megan Mathias stepped down after nine and seven years of service respectively. In their stead, we welcomed Trewin Restorick and Andrea WestaLI to the Board of trustees. Financial review Reserves policy Capital reserves Carnegie UK was set up with a permanent endowment. originally gifted by Andrew Carnegie in 1913. The capital value of this endowment is maintained at a level which provides sufficient funds to meet our long term strategic goaLs. Income and gains in excess of those required to preserve this Level of capitaL can be drawn down and are unrestricted. The value of our permanent endowment fund at 31 December 2025 was £45.340k12024'. £44,626kl. £43,880k of the permanent endowment is invested in global stock markets by a professional investment manager, with a mandate to obtain best total returns. within our ethical policy, with a view to our drawing down excess returns each year based on the 7- year rolting average. This policy was implemented in 2022 and in order to transition smoothLy to a lower annual drawdown. we set fixed annual operating budgets which used historical accumulated surpluses, thereby giving certainty to our managers on a growth mandate until 2026, Revenue reserves At 31 December 2025 we held revenue reserves of £2,748k12024.' £3,266kl in the form of unrestricted funds which are available for application to any of our activities in furtherance of our charitable purposes. Of this, £i,042k has been allocated to future programme activity.. £542k12024: £777kl for specific future programmes ongoing during the year,, the full balance of £259k of 2024 revenue underspend to improved dissemination over the coming 5 years,. and £45k12024', 23kl as a capital fund to reflect the net book value of fixed assets which were funded from unrestricted funds. Free reserves are those which are both unrestricted and can be easily converted to cash if required. therefore they exclude fixed assets, Andrew Carnegie House is included in our endowment portfolio so is excluded from this calculation. The net book vaLue of the other fixed assets at 31 December 2025 was £45k12024'. £23kl. giving us free reserves at 31 December 2025 of £1,707k12024'. £3,243kl The reduction reflects our move in 2026 to implementation ofthe 7-year rolling average value, for which we drew down sufficient funds into a short-term reserve to fund the period through to 2026.
The Carnegie United Kingdom Trust Report of the Trustees for the year ended 31 December 2025 Financial review (continued) Revenue reserves Icontinued) It is necessary to hold a level of cash and short term investment in a buffer fund which WILL enable our managers to make the best investment decisions. We aim to hold 9 to 12 months, expenditure in easily accessible assets. This equates to a range of around £1.2m to £1.6m on current activity and is in Line with our year end position. Resources arising during the year and how they were applied Aligned with this long term reserves policy, our resources budget for the year was £1,6ook 12024.. £1,65old drawing on cash previousLy drawn down from the endowment fund for the period from 2021-2025. Programme activity As an operating foundation, retaining skilled and experienced policy staff is crucial to enable us to deliver our programme activity as described in more detail above. AccordingLy, our programme staff expenditure comprises the main component of our cost base at £732k12024', £685kl. Investment policy The endowment is invested to produce the best financial return that is within an acceptable level of risk and within the boundaries of Carnegie UK'S ESG policy. Carnegie UK has implemented a total return approach to its investments, generating the investment return from income and capital gains and losses. It is expected that if in any one year the total return is insufficient to meet the budgeted expenditure, the real value ofthe endowment will still be maintained in the long-term using a sustainable distribution p0CY, The investment objective is to achieve long term capital and income growth ahead of inflation. The assets are managed to minimise capitaL erosion while generating sufficient income and growth to support the activities. The distribution policy for impLementation from 2026 envisages a budget based on the average value of the investments over 7 years. Risk management The Board accepts that if Carnegie UK is to achieve its charitable purposes it will have to take risks from time to time, particularly in specific policy areas. The Trustees have a duty to ensure that the Trust is financially sound and legislatively compliant and that it operates to high standards.
The Carnegie United Kingdom Trust Report of the Trustees for the year ended 31 December 2025 Financial review (continued) Risk management (continued) The Audit and Risk Committee, reporting to the Board, oversees risk assessment and management. The main tool used by the Committee to manage risk effectively is the risk management framework which includes a risk appetite for each of our key risk categories, and acceptable risk parameters for managers. During 2025, in conjunction with the strategy refresh, we assessed our emerging risks in reLatioN to the various aspects of our strategy and operations and have now embedded this within the risk management framework. In addition, the Committee continues to conduct a'deep dive" into a risk category each meeting and to report to the Board each December on their annual assessment. Trustees, in consultation with the chef Executive, will assess the actions necessary to manage risks and these form part of the strategic and operational plans for the folLowing year. Day to day risk management is delegated by Trustees to the Chief Executive who in turn allocates ownership of each risk on the risk register to one of the Senior Management Team, The risk register is kept under review throughout the year in harmony with the Audit and Risk Committee timetable. The highest net strategic risks after mitigations currentLy facing Carnegie UK concern our programme delivery and our people and we continue to manage these risks carefully in accordance with our risk appetite. structure, governance and management Board The Trustees of the Carnegie UK are responsibLe for the governance and strategy of the Trust, They are responsible for making sure that Carnegie UK is administered effectively and can account for its activities and outcomes. Trustees serve for a maximum of 9 years. The Board of Trustees keeps the skill requirements for the Trustee Body under regular review. Each new Trustee receives an induction meeting with the Trust Chair. Chief Executive and staff, Trustees meet formally on a quarterly basis where they agree and oversee the broad strategy and areas of activity for Carnegie UK. within the context of the agreed Strategic Plan, The Board of Trustees agree annual budgets in line with work plans. which are then delegated to the Chief Executive and her management team. Every five years the Trustees formalLy approve a Strategic PLan,' the Camegie UK Strategic Plan for 2026 -2030 was approved at the September 2025 Board.
The Carnegie United Kingdom Trust Report of the Trustees for the year ended 31 December 2025 Structure, governance and management (continued) standing committees Seven members form a quorum at each Board meeting. The Board appoints standing committees, which also meet regularly linked to the Board cycle.. Finance and Corporate Services (Executive) Committee - members support the Board in their responsibilities regarding Carnegie UK financial, investment, staff and property matters. Audit and Risk Committee- members independently review systems of internal control. oversee external audit procedures, monitor risk and compliance and report to the Board. Nominatlons Committee- members oversee procedures for the succession planning of new Trustees and Committee composition, and the membership of periodic working groups established by the Carnegie UK. The Committee also assists with governance issues. The terms of reference of each Committee are included in the Trust's Standing Orders. Carnegie UK atso uses additional working groups where required to oversee specific work relating to its charitable objectives. Key management personnel Carnegie UK considers its key management personneL to be the Trustees and senior management team ag set out on page i. Trustees do not receive remuneration for their services. Members ofthe senior management team are each subject to regular performance and professionaL development appraisal and remuneration is approved at Board leveL Statement of Trustees, Responsibilities The Trustees are responsibLe for preparing the Trustees, Annual Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards Iunited Kingdom Generally Accepted Accounting Practicel. The law applicable to charities in Scotland requires the Trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the Trust and of the incoming resources and application of resources of the Trust for that period, In preparing these accounts, Trustees are required to.. select suitable accounting policies and then apply them consistently, observe the methods and principles in the Charities Statement of Recommended Practice ISORPI 2019 IFRS1021', make judgements and estimates that are reasonable and prudent, state whether applicable accounting standards have been followed., and propare the accounts on the going concern basis unless it is inappropriate to presume that the Trust wilL continue in operation io
The Carnegie United Kingdom Trust Report of the Trustees for the year ended 31 December 2025 structure, Governance and Management (continued) statement of Trustees, Responsibilities (continued) The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Trust and enable them to ensure that the accounts comply with the Charities and Trustee Investment IScotLandl Act 2005, the Charities Accounts IScotLandl Regulations 2006 las amended) and the provisions of the Royal Charter 1917. They are also responsible for safeguarding the assets of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for the maintenance and integrity of the Trust and financial information included on the Trust's website. Legistation in the United Kingdom governing the preparation and dissemination of accounts may differ from legislation in other jurisdictions. Signed on behalf of the Trustees on io June 2026 by David Emerson. Chair Carnegie United Kingdom Trust Registered Charity Numbers,. Operating in UK SC 012799; Operatlng in Ireland 20142957 Incorporated by Royal Charter 1917 li
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE CARNEGIE UNITED KINGDOM TRUST Opinion We have audited the accounts of The Carnegie United Kingdom Trust (the 'charity'l for the year ended 31 December 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement ofcash Flows and notes to the accounts, 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 Practicel. In our opinion the accounts.. give a true and fair view ofthe state ofthe charity's affairs as at 31 December 2025. and of its incoming resources and application of resources for the year then ended, have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Charities and Trustee Investment IScotLandl Act 2005 and regulation 8 of the Charities Accounts (Scotlandl Regulations 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable Law. Our rèsponsibilities under those standards are further described in the Auditor's responsibilities for the audit of the accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK. 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 accounts, we have concluded that the trust&s' use of the going concern basis of accounting in the preparation of the accounts is appropriate. Based on the work we have performed, we have not identified any material uncertainties retating 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 leasttwelve months from when the accounts are authorised for issue, Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. other information The other information comprises the information included in the trustees. annuaLreport. other than the accounts and our auditor's report thereon. The trustees are responsible for the other information. Our opinion on the accounts does not cover the other information and we do not express any form of assurance conclusion thereon. 12
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE CARNEGIE UNITED KINGDOM TRUST Icontinued) Our responsibitity is to read the other information and, in doing so, considerwhether the other information is materialLy inconsistent with the accounts 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 misstatement in the accounts 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 to report in this regard. Matters on which we are required to report by exception We have nothing to report in respect ofthe following matters in relation to which the Charities Accounts (Scotlandl Regulations 2006 requires us to report to you if, in our opinion.. the information given in the trustees. report is inconsistent in any material respect with the accounts., or proper accounting records have not been kept., or the accounts are not in agreement with the accounting records,, 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 set out on page ii, the trustees are responsible for the preparation of accounts which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error. In preparing the accounts, 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 tiquidate the charity or to cease operations. or have no reaStIC alternative but to do so. Auditor's responsibilities for the audit of the accounts We have been appointed as auditor under section 441illcl of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Act ar)d any relevant reguLations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the accounts 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. Fieasonable assurance is a high Level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI 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 accounts. 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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, are detailed below.
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE CARNEGIE UNITED KINGDOM TRUST (continued) As part of our planning process.. We enquired of management the systems and controts the charity has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud. and whether there was any known, suspected or alleged fraud. Management informed us that there were no instances of known, suspected or alleged fraud., We obtained an understanding of the Legal ar)d regulatory frameworks applicable to the charity. We determined that the following were most relevant,, employment Law lincLuding the Working Time Directivel,, and compliance with charity law and accounting framework,, We considered the incentives and opportunities that exist in the charity, including the extent of management bias. which present a potential for irregularities and fraud to be perpetrated, and tailored our risk assessment accordingly.. and Using our knowledge of the charity, together with the discussions heLd with management at the ptanning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedure5 according to this risk assessment. The key procedures we undertook to detect irregularities including fraud during the course of the audit included.. Enquiries with management about any known or suspected instances of non- compliance with laws and regulations and fraud.. Reviewing Board meeting minutes for discussions of irregularities including fraud., Challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to the vaLuation of Listed and social investments.. Auditing the risk of management override of controls. including through testing journal entries and other adjustments for appropriateness., Testing key revenue lines, in particular cut-off, for evidence of management bias.. and Reviewing the financial statement disclosures and determining whether accounting FX)licies have been appropriately applied. Owing to the inherent Limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly pLanned and performed in accordance with the ISAS IUKI. For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the Less likeLy the auditor is to become aware of it or to recognise the non-comptiance, The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentionaL concealment, forgery. collusion, omission or misrepresentation. The primary responsibility for the prevention and detection of irregularities and fraud rests with the trustees. A further description of our responsibilities is avaitable on the FRC'S website at.. htli!s //www.fi'c.or .uk/(JudiLoi"" urisibililies. This description forms part of our auditor's report.
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE CARNEGIE UNITED KINGDOM TRUST (continued) Use of our report This report is made solely to the charity's trustees. as a body, in accordance with Regulation io of the Charities Accounts (Scotlandl Regulations 2006. 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 thè 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. Henderson Loggie LLP CharteredAccountants and Statutory Auditor The Stamp Office Level 5, 10-14 Waterloo Place Edinburgh EHI 3EG Henderson Loggie LLP is eligibLe to act as an auditor in terms of section 1212 of the Companies Act 2006. 1410712026 15
The Carnegie United Kingdom Trust statement of FinanciaL Activities Year ended 31 December 2025 Unrestricted Endowment Funds Fund 2025 Total 2024 Total ote Income and endowments from.. Investments 823.712 20.000 843,712 844,735 other income Total 4,187 848,922 823,712 20,000 843,712 Expenditure on: Raising funds Charitable activities.. Total 87,307 1,551.600 150,787 188,2481 62,539 238,094 1,46 .352 1.701.446 238,102 7.013 1.595,115 Net gains/llossesl on investments 1,054.569 1.054,569 5,317,750 Net income/lexpenditurel 1815.1951 1.012,030 196,835 4.571.557 Transfers between funds 7,397 12 7,3971 Net movement in funds 1517.7981 7u.633 196.835 4,571,557 Reconciliation of Funds,. Total funds brought forward Total funds carried forward 20 All results relate to continuing octivities. The notes on pages 19 to 29 form part of these accounts 16
The Carnegie United Kingdom Trust Balance Sheet As at 31 December 2025 2025 2024 Note Fixed assets: Tangible assets Investments Social Inveslmenls Total fixed assets 741.415 45,856,625 659,60 47,257,645 740.074 45.725,116 .879 47,0,069 io li Current assets Debtors Cash investments Cash at bank and ir) hand Total current assets 12 18 18 46,773 524.517 416,50 987.7g9 102,000 507,424 642.257 1,251,681 LiabiLities', Creditors.. amounts falling due within one year Net current assets 13 1156.1231 (374,262J 831,676 8,089,321 877.41 47,892,488 Total net assets The funds of the charlty.. Endowment funds Unrestricted funds.. Total charlty funds 45,340,943 2.748,378 48,08g,321 44.626.312 3,266.176 47,892,488 15 Approved by the Trustees on io June 2026 and signed on their behalf by.. DAVID EMERSON, Chair ofTruste MARK SHUCKSMITH, Convener of Audit and Risk Committee The notes on pages 19 to 29 form part ofthese accounts 17
The Carnegie United Kingdom Trust statement of Cash Flows Year to 31 December 2025 2025 2024 Note Net cash loutfiow) from operating activities.. 17 11.094.628) (516.415) Cash flows from investing activities.. Redemption of social investment Proceeds on disposal of investments Payments to acquire investments Movement in inveslment portfolio cash Payments to acquire fixed assets 247.320 19,242.433 119,049.461) (232,230) 17,739.956 117,456,894) 639,997 .0871 13.024J Net cash provided by investing activities 885,973 205,038 Change in Cash and cash equlvaLents In the year 18 1208,650 {311,377) Cash and cash equivalents brought forward 1,149.681 1,461,058 Cash and cash equivalents Carried forward 941,026 1,149,681 The notes on pages ty to 29 form part of these accounts 18
The Carnegie United Kingdom Trust Notes to the Accounts Year to 31 December 2025 i. General Information Carnegie UK'S charitable purpose is to improve the wellbeing of the people of the UK and the Republic of Ireland. It is recognised as a charity in Scotland (No SC 0127991 and in Ireland (No 201429571 and meets the definition of a public benefit entity for the purposes of reporting under the Financial Reporting Standard applicabLe in the UK and RepubLic of Ireland IFRS 1021. The accounts are prepared in accordance with FRS 102 and with the Statement of Recommended Practice ISORP) and are presented in pounds sterling IGBPI as the currency in which the Trust's transactions are denominated. 2. PrincipaL accounting policles The principal accounting poLicies,judgements and egtimates applied in the preparation of these financial statements are summarised below, These policies have been applied consistently to allthe years presented, in dealing with items which are considered material in relation to the charity s financial statements. lal Basls of preparation incLuding criticaljudgements and estimates The financial statements have been prepared under the historical cost convention, with the exception of listed investments which are included at market value at the balance sheet date. Assets and tiabilities are initially recognised at historical cost. Preparation of financial statements requires the use of certain critical accounting estimates and assumptions which affect reported results and financial position and require Trustees to exercisejudgement in the process of selecting and applying the accounting policies. Use of available information and application ofjudgement are inherent in the formation of estimates. Actual outcomes in the future could differ from such estimates. There are no estimates or assumptions with a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financiaL year. The areas involving a higher degree ofjudgement or complexity, or areas where assumptions and Èstimates are significant to the financial statements comprise.. Depreciation rate applied to Andrew Carnegie House, and RecoverabiLity of loans within the Trust's sociaL investment portfo0. 19
The Carnegie United Kingdom Trust Notes to the Accounts (continued) Year to 31 December 2025 2, Principal accounting policies (continued) Ibl Going concern The trustees have assessed the Trust's Long term sustainability in the context of its endowment fund, which is fundamentaL to its ability to continue as a going concern and have a reasonable expectation that the Trust has adequate resources to continue in operational existence for at Least the next twelve months. Thus, they continue to adopt the going concern basis of accounting in preparing the accounts. Icl Incoming resources All incoming resources are recognised when the Trust has entitlement to the income, it is probable that the income will be received. and the monetary value of the income can be measured with sufficient reliabiLity. Dividends from listed investments are recognised on the ex-dividend date. Idl Recognition and allocation of resources expended A Liability is recognised when the Trust has entered into a legal or constructive obligation. The Trust is not registered for Value Added Tax IVATI so expenditure is recorded gross of VAT. Costs are allocated to the relevant cost category in the Statement of Financial Activities as follows.. Raising funds - investment management fees. These are allocated 60/ to endowment and 40% to unrestricted funds.. Directly charitable activities - costs directLy attributable to wellbeing programmes Support costs- indirect costs which enable the directly charitable activity. These include governance costs, which are costs of meeting the constitutional and statutory requirements, including audit fees and an allocation of indirect support costs lel Pension scheme The Trust makes contributions to group personal pension plans for employees. The Trust's contributions are charged to the Statement of Financial Activities in the year in which contributions are made. 20
The Carnegie United Kingdom Trust Notes to the Accounts (continued) Year to 31 December 2025 2. PrincipaL accounting policies (continued) If) Flxed assets Expenditure of over £1,000 is capitalised if the Trust expects to gain economic benefit for more than one year. Land and buildings comprise the Trust's share of Andrew Carnegie House. The Trust is the co-owner of this building together with the Carnegie Dunfermline and Hero Fund Trusts and the Carnegiè Trust for the Universilies of ScotLand. Land and buildings are originally stated at cost and reviewed for impairment annually. Depreciation is charged on fixed assets as follows.. Property 2/0 Straight ne Fixtures, furniture, fittings & plant 2/ - 25/¢ Straight line Computer equipment over £1,000 33.33/0 Straight line Igl Listed investments Listed investments are included initiaLLy at cost and subsequently at fair value, being mid-market price at the balance sheet date. Gains and losses arising are recognised in the Statement of Financial Activities in the period in which they arise. Ihl Social investments The Trust has an AffordabLe Credit Loan Fund which comprises programme related investments, in the form of concessionary Loans made at below market rates and on terms designed to advance the Trust's charitable purposes. The carrying value of the Fund represents the initial Loan amounts advanced, net of repayments and any impairment. lil Flnancial instruments The Trust has only basic financial assets and liabilities comprising investments, debtors, cash at bank and creditors. These assets and LiabiLities are initiaLly recorded at cost and subsequentLy at market value in the case of investments and in respect of other assets and liabilities at the amounts expected to be received or paid. (il Current asset Investments These comprise notice deposits with maturity of more than 3 months and less than one year. They are accounted for at cost. Ikl Cash and cash equivaLents Cash at bank comprises baLances held with banks and investment managers, with a maturity of Less than one year. 21
The Carnegie United Kingdom Trust Notes to the Accounts (continued) Year to 31 December 2025 2. Principal accountlng policles Icontlnuedl IL) Funds Funds held by the Trust are.. endowment fund - originally gifted from Andrew Carnegie in 1913. The capital value should be preserved and the income arising is unrestricted., and unrestricted funds, which can be used in accordance with the charitable objects at the discretion of the Trustees. 3. Comparative statement of financial activitles 2024 Unrestricted Restricted Endown7ent Funds Funds Fund 2024 Total Incoming resources arising from.. Investments Other income Total 820,425 4,187 824,612 24.310 844.735 4.187 848,922 24.310 Resources expended on.. Raising funds Charitable activities,. Total 86.ggi 1,331,06 1,418,060 151,111 20,944 172,055 238.102 1,357,01 1,595.115 5.000 .000 Net resources expended before gains/(losses) on investments (593.448) (5.000) (147,745) (746,193) Net gains/llossesl on investments 5,317,750 Net fresources expended)/incomlng resources Transfers Net movement in fvnds 2024 (593,448) (5,000) 5.170.005 4.571,557 88,061 (505, 87) 1555) .555) (87,506) 5.082,499 4,5B, 22
The Carnegie United Kingdom Trust Notes to the Accounts (continued) Year to 31 December 2025 4, Resources expended on charitable activities Unrestricted Restri¢ted Funds Funds Endowment Funds Total 2025 Directly charitable activity.. staff costs Programme grants other programme costs other direct costs Support costs (note 51 Total 2025 732,964 21.980 381.070 137,885 277,700 732,964 21.980 271,516 154.238 282,653 1,463,352 1109.5541 16,353 4.953 188.2481 1,551,600 Prioryear Directly charitable activNIy.' staff costs Programme grants otherprogramme costs Other direct costs Support costs (note 5) Total 2024 685,727 21,980 zii,883 119.893 2gi,586 1,331,069 685.727 26,g80 211,883 135.968 296,455 5,000 16,075 4,869 5.000 20,944 1,357.013 5. Support costs TotaL 2025 Totul 2024 staff costs Property IT and related costs Office and administration Governance (see note 61 201,582 . 12,159 19.740 10.976 38.197 282,653 207,693 13,990 17.036 10,157 47.579 296,455 23
The Carnegie United Kingdom Trust Notes to the Accounts (continued) Year to 31 December 2025 6. Governance costs Total 2025 Total 2024 External audit fee Trustee expenses 15,360 22,837 38,197 17.061 30.518 47,579 7. Analysis of staff costs 2025 2024 Salaries Social Security costs Pension costs 666.962 77,191 155,099 899,252 645.810 66.253 6.334 848,3 The Trust considers its key management personnel to be Trustees, and the Senior Management Team, comprising the chief executive. directors and heads of services. The total employee benefits of key management personnel including employer NIC and pension contributions were: Included in the staff costs above is a termination payment of £nil12024.'£17,3221 to one member of staff. The amount was fully paid by the year end. The number of employees, whose employee benefits (excluding employer's pension contributions) exceeded £6ok and felL within the following bands, were.. £60,000- £70.000 £70.000- £80,000 £80.000 - £90,000 £90.000- £100,000 £ioo,000- £iio,000 £510,545 £488,906 2025 2024 The average monthly number of employees during the yoar was as follows.. Policy development Support staff io io 13 No Trustees received any remuneration in 2025 or 2024. Trustees are reimbursed for expenses incurred whilst carrying out their duties as trustees. All trustee reimbursements 12024., all) were in furtherance of the charitable objectives. The total incurred was £22,836 12024.. £30,518) and these comprised mainly travel, accommodation and catering expenses for attendance at Board meetings. plus venue hire for the Board m&ting held off-site annually. 24
The Carnegie United Kingdom Trust Notes to the Accounts (continued) Year to 31 December 2025 8. Pension Commitments As at 31 December, all 16 employees were in the Royal London Group Personal Pension PLan12024'. all), to which the Trust contributes. Trust contributions range from 6/ to 13/0 of salary. The pension charge for the year was £155,099 in respect of the personal pension pians12024'. £136,334). The pension contributions outstanding at the year-end were £nil 12024: £11.6041. 9. Tangible Assets Land and BuiLding5 Fittings & Plant Computer Equipment Total Cost At i January 2025 Additions Disposats At 31 December 2025 1.065,345 286,147 57,198 37,087 151,5161 42.769 1.408.690 37,087 151.5161 1,394,261 1.065,345 286.7 AccumuLated depreciation At i January 2025 Charge for year Disposals At 31 December 2025 347,908 21,306 264,366 4,678 269.044 56.342 9,762 151,5161 14,588 668,616 35.746 151,5161 652,846 369,214 Net book value At 31 December 2025 At 31 December 2024 696.131 717.437 17,103 21,781 28.181 856 741,415 740.074 io. Llsted Investments 2025 2024 Mayket value At i January Additions at cost Disposals at opening market value Unrealised gain during year Change in cash At 31 December 45,725.116 17,456,894 118,365,840) 1.680.452 163 .g971 45.856.625 40.368,108 19.049.461 (18,327,952J 4,347,742 287,757 45,725,116 Cost At 31 December .463,539 39,407. 25
The Carnegie United Kingdom Trust Notes to the Accounts (continued) Year to 31 December 2025 ii. SociaL Investments 2025 2024 Balance at i January Interest receivable Management fee5 payable Loan repayment Reversal of impairment Al 31 December 549,879 20,000 119,8281 793,515 24.310 (20,626) 1247,320) 109,554 65 ,605 54g,879 12., Debtors 2025 2024 Debtors and prepayments Accrued income Total 26,474 20,299 46,773 73,846 28,154 102,000 13.Creditors: amounts due withln one year 2025 2024 Accruals other creditors Total 122.754 3.369 260,433 113,829 74.262 14.Endowment fund 2025 2024 Opening baLance at i January Net resources expended Net gains/llossesl recognised in year Transfers Total 44,626,312 142.5391 1,054.569 1297.3 71 45,340,94 39.543,813 (147,745J 5.317.750 187.506) 44,626.312 The net transfer of £297,397 (2024.. £87.506) is the drawdown to fund programme activity in line with the Trust's total rèturn investment p0CY, 26
The Carnegie United Kingdom Trust Notes to the Accounts (continued) Year to 31 December 2025 15. Unrestrlcted Funds Balance atiJan 2025 Net resource5 expended Transfers Balance at 31 Dec 2025 Designated funds.. Programme development Unspent revenue Designated capital Total designated Free reserves Total 776,791 258,649 22,637 1,058,077 2,208,099 3,266.176 1234,6531 542,138 454.395 45,284 1.041,817 1,706,561 2,748.378 195.746 22,647 218,393 79,004 297,397 1234.6531 1580,5421 1815,1951 Programme deveLopment funds represent the balance of funds committed in prior years for programmes which WILL complete in subsequent years. The main component of this is a further five year commitment to our flagship Life in the UK index, The capitaL fund reflects the net book value of asset5 funded from unrestricted funds. These exclude the Trust's share of Andrew Carnegie House, which is held in the endowment fund. The unspent revenue fund represents the underspend from 2024 and 2025, based on a sustainable total return investment policy. The opening balance of £259k has been committed to future dissemination activity. Plans are ongoing to utilise the 2025 underspend for future charitable activity. As expLained in the investment policy, we have a long term average drawdown of a sustainabLe total return. Accordingly our free reserves comprise the cash flow reserve against stock market downturns as explained in the reserves poLicy section of the trustees annuaL report, Prioryear comparison Balonce atijan 2024 Net resources expended Trun5ftrs Balance at31 Dec 2024 Designated funds.. Programme development Capitol Unspent revenue 13.500 25,648 (122,709) 886,000 (3,01 258.649 1.141,638 (1,0 .577) 88.061 776,791 22.637 258.649 1,058.077 2,208.099 3,266,176 39,8 3,732,415 ,771,56 1122,7091 (470,739) (5g3,448) Free reserves Total 27
The Carnegie United Kingdom Trust Notes to the Accounts (continued) Year to 31 December 2025 16, Analysis of net assets among funds Tangible Investments flxed assets Social investments Net Current assets Total Endowment Unrestricted Funds Total 2025 696,131 45.284 43,879,903 1.976,722 659.605 105,304 726,372 45,340,943 2.748.378 741,415 45,856,625 659,605 831.676 48.089.321 Prioryear¢omparlson Tanglble fixed assets Investments Soclal Investments Net current assets Total 2024 Endowment Unrestricted [unds Tota12024 717,437 22,637 740.074 43,270,464 2,454,652 45.725,116 549,879 88.532 788,887 44.626.312 3.266.176 47,8 549,879 17. Reconciliation of net movement In funds to net cash loutftow) from operating actlvities 2025 2024 Net movement in funds for year including investment Income Depreciation Ilncreasel/decrease in debtors IDecreasel/increase in creditors Net change in social investment Unrealised Igainl on investments Realised loss/lgainl on investment disposats Net cash loutflowl from operating activities 196,835 35,746 55,227 1218.uil 1109.7261 11,680,4521 625,883 11,094,628) 4,571,557 26,979 17,184 189,299 13.6841 14,347,742> 1970,0081 1516,4151 28
The Carnegie United Kingdom Trust Notes to the Accounts (continued) Year to 31 December 2025 18, Cash and Cash equivalents AtiJan 2025 At 31 Dec 2025 Cash flows Short term deposit Cast at bank and in hand 507,424 642,257 1,149,681 17,093 1225,7481 1208.6551 524,517 416,509 941,026 19. Related parties Four trustees of the Carnegie UK Trust are also trustees of the Carnegie Dunfermtine and Hero Fund Trusts. charities registered in Scotland. The Trust shares ownership of Andrew Carnegie House with the Carnegie Dunfermline and Hero Fund Trust and the Carnegie Trust for the UniversSties of Scotland. The Trust is responsible for an agreed proportion of the running costs of the building. 20. Operatlng lease commltments Carnegie UK Trust has one operating lease. The charge for the year was £6,58612024.' £6,197). The total future minimum commitment at 31 December 2025 was £2.41312024'. £8,193), all of which is payable within one year12024', £6,197 due within one year and the balance of £1.997 Wlthin two years). 29