Scotll8h Charlty Nth 8C027532 E HUNTER F DATI TR STEES REPORT AND FINANCIA TATEM r8 31 MARCH 2025 THE HUNTER FOUNDATION CONTE OF FINANCIAL STATEMENTS F THE ENDED 1 MARCH 2025 Page Reference and Administrats've Delails Report of the Trustee8 2to4 Report of th• Ind8pendent Auditor8 5t08 Stat8mént of Financial Activiti8S 9t010 Balancx Sheet 11to12 Cash Flow Statement 13to14 Notes to the Cash Flow Ststements 15to18 Nota8 to the Financial Statements 17to34 THE HUNTER FOUNDATION REFERENCE A D ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 MARCH 2025 TRUSTEES CHIEF EXECUTIVE REGISTERED CHARITY NUMBER SC027532 PRINCIPAL ADDRESS Blair Castle Blair Estate Blair Road D81ry I(A24 4ER REGISTERED OFFICE Marathon House Olympic Busine&8 Park Drybridge Road Dundonald 1142 9AE AUDITORS Henry Brown & Co 26 Portland Road Kilmarnock K412EB BANKER8 Royal bank of Scthnd 4th Floor 110 Queen Street Gla8gow G13BX Pagc I THE HUNTER F UNDATION REPORT OF THE TR STEES F THE YEA ENDED RCH2 The trustees present Iheir report logether with the con501idated tln8nclal statements for the charrty and its subsidiary for the year ended 31 March 2025. The trustees have adopted the provisions of Accounting and Reporting by Charitie8: Statement of Recommendod Practice applicable to charrties preparing their accounts in accordan￿ with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). OBJECTIVES AND ACTIVITIES Objectlves and alms The Foundalion's objectives are to Invest in th6 intèrconnecting spheres of education, entrepreneurship and poverty allevialion underpinned by leadershlp development to deliver systemic change predominantly in the UK. In essence, our fundamental belief is that the best social policy èver invented is a dscently paid job. creating Jobs through entrepreneurial endeavour and equipping our young peop￿ for thos8 jobs through education is a virtuous circle that impacts directy on povgrty alleviaiion, but to be effective rt require8 le*lership at all levels. In temi8 of supporting Job cre8tlon, our expanded portfolio of investments including our Pre-SCa￿r prcgramme for naS￿nt, high growth businesses and the Changemaker programrrfi supporting SOGial entrepreneurs arKI Chantiès with tha 8mbition to scale have proven incredibly popular. These 8re, as we are seeing prO￿dIng decent plpeline of companles succ888fully transrtioning into our W*IW.8caleUP8cotland.co.uk mature programm88. To d810 between our Scaling Up programmes and Sc0tt18h EDGE wa have supported entrepreneurs to create in ex¢a88 of 8,500 newjobs and adding In exce8s of £2 bllllon of addltlon81 turnover. Our acqul8ltion of Blalr Estate h88 proven p￿otal to our goals and ambrtbns around leadershlp development and thu6 all of our investments. The Foundation continues to invest significantly in the Castle'8 upgrading 88 befits Scotl8nd'8 olde8t continually inhabited Castle. V￿￿.blalre8tata.cO.uk We contlnue to Inve81 In programmes and projects that we regard 88 8C818ble and sustainable in regard to delrvering 'opportunty for all.. In general, the Foundation will only invest in a programme where there are Glear and tangible KPI'S and a wefi-deflned ex￿ slrategy. No investment will be made that ancourage8 any fom of depend8ncy on funding from the FourKlation or Indeed any other donor. In deciding upon any investment, assuming these criteria are met. the Foundatlon then weKJhs up the c081 benafrts of any proposal and makes a judgement on investment based upon impact per W invested. ACHIEVEMENT AND PERFORMANCE Achlevements and p•rformance During the year we focused on strategicalty linking muitiple inve8tmen18 to maximi8e impacts. At a fundamental level we also recognised we needed to increase our investment in leadership In order to support systemic change and double down on enabling custo1￿r led policy design. Page 2 THE HUNTER F NDATION REP RT TEES FOR THE YEAR ENDED 31 MARCH 2025 FINANCIAL REVIEW Flnanclal r8view The results for the year are presented in the St8tement of Flnancial Actlvities on pages 9 to 34. Further analysis of income and expenditure during the year is detailed in notes to 2 to 15 of the financial 8tat8mant8. Th8 trustè8s have prudentty established and retained funds to satiate on-going financial plan8 8nd obl8Ctlve8. Endowment Funds repr8s8nt 74% of reseNeA and ar8 held in Investments to be used for the k)ng-term objectlves of the Foundalion. Unrestrict&l re8eNes are predominantly held in cash balances and can be applied as required to approved projects. The Trustees have assessed the m4.or ri8k8 to which the charity 18 exp08ed and are satisfied thal Systems are in place to mitigate exposure to these risks, which are principally failu￿ of a grante8 or programme to deliver against pre-agTred KPIS. Given the Foundation invests in major pro3ramme8. against 8aKI delivery on a "drip food, basis those ri8k8 are managed. FUTURE PLANS We will continue to inv88t in our core area8 of entrepreneurship, education and povety alleviation all underpinned by leadershlp developrnent. We have èngaged wrth the Scottish Government to ask them to reconsider partnerlng with us In dellvering Head Teacher Leadership Academies for our school readers. We will continue to leam, adapt, extend and upgrade our portfolio programmes where we se8 significant ROI and focua on 8UPPOrting public Sector refomi and policy change that puts the customer al the heart of what is delivered to them i.e. that it is what they need, not what the system offers them. Blair Castle sees continuing growth in our usage and we will continue to invest In that exception81 resou￿8 that supports all our investments and many other partner organisations. STRUCTURE. GOVERNANCE AND MANAGEMENT Governlng document The charity is controlled by its goveming document, a deed of tru8t. and constSlutes an unincorporated charity. STATEMENT OF TRUSTEES, RESPONSIBILITIES The trustee8 are responsible for preparing the Report of the Tru8tee8 and the financial statements in accordance with applicabl8 law and United Kingdom Accounting Stand8rds (Unrted Kingdom Generally Accepted Accounting Practical. Thè18w applicable to charities In Scotl8nd, and the Chariti88 and Trustee Investment (Scotland) Act 2005, Charities Accounts {Scotland) Regulations 2006 (as amended) and the provisions of the charity's constitution requires the trustees to prepare flnanclal statements for each financial year whth give a true and fair view of the state of affairs of the charity and of the incoming re80urces and appllcatlon of resources. including the income and expendiiure, of the Charity for that period. In preparing th08e finanGb818tatement8, thg trustee8 are required to Select suitable accounting policies and then appty them consi8tentty' observe the methods and principles in the Charity SORP. make judgements and estimat68 that are reasonable and prudent., state whether applicabFe accounting standards have been followed, 8ubject to any material departure8 disclosed and explained in the financial statements., prepare the financial statements on thè going concern basis un18S8 it is inappropriate to presume thst the charity will continue in buslness. Pag¢ 3 E HuKfER FOUNDATI REPORT OF TH TE FORT D31 The trust88s are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements ¢(xnply with the Charitie8 and TNstee Investrnent (Scotlandl Acl 2005, the Chafities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the chanty's constitution. They are also responsible for safeguarding the assets of the charity and hence for tsking reasonable Stsps for the prevention and detection of fraud and other irregularitie8. Approved by order of the board of trustée8 on 11 D8c8mber 2025 and signed on it8 beha￿ by: Page 4 THEH rER FOUNDATION IN EPEND ORS, REPORT T THE TR TEES OF HE HUN UNDA ON Oplnlon We have audrted the financial statements of The Hunter Foundation (the 'charity') for the year ended 31 March 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and not8S to the financial statements, including a summary of signrficant accounting policies. The financial reportlng framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards. including Financial Reporting Standard 120 The Financial Reporting Standard applicable In the UK and Republic of Ireland (United Kingdom Generalty Accepted Accounting Practice). In our opinion the financlal 8tstement8.' give a true and lair view of the state of the charity's affairs as at 31 March 2025 and of its incoming resources and application of resources, including it5 Income and expenditure, for the year th8n ended,. have been properly prepared in eLcordance wrth United Kingdom Generally Accept&Y Accounting Pr8ctie8' and have been prepared in accordance with the requir8ment8 of the Charitles and Trust88 Investment (Scotland) Act 21J05 and regulatlon 8 of th6 Charities Accounts (Scotland) Regulations 2008. Bag18 for oplnlon We conducted our audit in accordance with International Standard8 on Audiling (UK) (ISA8 (UK)) and applicable18W, Our r88ponsibiliti88 under those standardg are further described in the Auditors, re8ponsibilrties for the audit of the financial statements section of our report. We are independ8nt of th6 charity in accordance with the ethical requirements that are relev8nt to our audrt of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fu￿Illed our other 8th￿al responsibilities in accordancè with these requirement8. We believ& that the audit evidence we have obtained 18 suff￿18nt and appropriate to provide a ba818 for our opinion. Conclu8lon8 rnlatlng to golng concern In audlting the financial staternent8, we have concluded thal the tru8toe8' use of the going concem basis of accountlng in Ihe proparation of the financial statements 18 appropriate. Based £￿ ttr￿ work have p8rfomied, we havo not Identlfied any rnaterial uncert8intie8 relating to events or condltions that, Indlvldually or collectivety, may ¢ast significant doubt on the charitls abilty to continue as a going concwn for a perl¢)d of at least twelve mnths trom when the financial statement8 are authorised for i$8ue. Our respon8ibilkles and the re8ponsibilltlgs of the trustees wtth respect to going concern are de8cribad in the relevant sectlons of thi8 réport. Other Infomiatlon The trustees are rgspon8ible for the other Infomation. The other InfomiatN)n comprises the infomiation Included in the Annual Report, other than the financial 8tatement8 and our Report of the Independent Auditors thereon. Our opinbn on the financial statements does not cover the other inform8tion and, except to the extent otherwise explicrtly st8ted In our report, do not express any form of assurance conclusion thereon. In connection with our audit of the financLg1 statements, our r8sponsibilrty 18 to read the other infom?ation and, in doing 80, consider whether the other informath)n 18 malerlally inconsistent with the fi'nanclal statements, or our knowledge obtained in the audit or othe￿￿lse appears to be materlalty mlsstated. If we identify such material inconsistencie8 or apparent material misstatements, we are required to determlne whether this gtve8 rise to malerial misstatement in the financial statements themselves. If, ba88d on the work we have performed, we conclude thal there is 8 material misstatement of this other infom￿tIon, we are required to report that fact. We have nothlng to report in this regard. Pag¢ 5 THE HUNT OUNDA PENDENT AUDITORS, REPORT TO THE TRUSTEE FTHE NTE FOUNDATI Matters on whlch wo are requlred to report by exceptlon We have nothing to report in respect of the followlng matters where the Charities Accounts (Scotland} Regulations 2006 requires us to report to you rf, in our opinion". the information given in the Report of the Trustees Is inconsistent In any materlal respect wrth the financial statemants. or proper accounting record8 have not been kept; or the financial statement are not in agreement with the accounting records and returns., or we have not rec8ivèd all the infomiation and explanations we require for our audit. or Responslbllltles of tru8te88 AS explained more fully in the Statement of Twste88' Respon8iblllties, the trust8aS are responsible for the preparation of the financkql statements which give a tru8 8nd fair vi&w, and for such int8mal control 88 the trustees dotermine is necessary to enable th8 preparation of financial statements that are free from material misstat8ment, whether due to fraud or error. In preparing the financial 8tstement8, the tru8tee8 are re8pon8ible for assessing the charlty's abllty to contlnue as 8 going concern, discloslng, a8 applicab5e, matter8 releted to going Goncem and using the going concem basts of accounting unless the trusteeg eithar intend to liquidate the charity or to ¢ea8e operation8, or have no reallst attemative but to do 80. Page 6 THEH NTER FO DATIO INDEPENDENT AUD ORS. REP TTOTH STEE FTHE UNTER F NDATI Our responslbllttles for tha audlt of th8 flnanclal statements We have been appointed as auditors under Section 44(1)(c) of thè Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Act and relevant regulations made or having effect thereundar. Our otyectives are to obtain rèasonable assurance about whether the financial statements as a whole are free from material misstaternent, whether due to fraud or error, and to issue a Report ol the Independent Auditors that includes OLK opinion. Reasonable assurance is a high level of assuran￿ but is not a guarantee that an audit conducted in accordance wrth ISAS {UK) will afrways detect a material misstatement when it exists. Misstatements can arise from fraud or error and ara considered material if, Individualty or in the aggregate, they could reasonably be expected to Influ8nc8 the economic decisions of users taken on the ba818 of these financi81 statements. The 8￿ent to which our procedums are capabl8 of detectlng irregulartti88, Ir￿lUdIng fraud 18 datailed below: Irregularities, including fraud are instances of non-cornp16ance with laws and regul8tions. We désign procedures In line with our re8pon8ibillties, outlined above, to det￿t material mlsststements In respect of Irregularit￿$. includlng fraud. We assessed whether the engagement team collectivety had the appropriate competence and capabl1￿leS to Identty or recognise non