The Richard Oatley Trust Number 2 Annual Report and Financial Ststements Year Ended 31 March 2025 Charity registration number.. 1198118 The Richard Oatley Trust Number 2 Contents Trustees, Report 1105 Reference and Adminislralive Details Statement of Trustees, Responsibilities Independent Auditor's Report 7t010 Statement of Financial Activities 11 Balan￿ Sheet 12 Cash Flow Statement 13 Notes to the Financial Statements 14to23 The Richard Oatley Trust Number 2 Trustees, Report The Iruslees present their report and the audited financial statement for the year ended 31 March 2025. Introduction The reference and administration information sel out on page 1 forms part of this report. The financial statements have been prepared in accordance with the accounting policies sel out in notes lo the accounts and comply with the charity's governing document, the Charities Act 2011 and Accounting and Reporting by Charities.. Statement of Recommended Practi￿ applicable lo charities preparing their accounts in accordance with FRS 102 Objectives and activities The objects of the charity are to pay all or part of the trust fund lo, or for the benefit of, any of the charitable beneficiaries named in, or legally added lo, the original trust deed of August 2015 The charity provides funding to a small number of specific charities who have a direct impact on the lives of people living and working in Wiltshire and Somersel. Beneficiary charities operate across a wide spectrum of activities which include farming & agriculture, cancer research & patient support, rural communities, mental wellbeing, and historic buildings & landscapes. Vvhilsl the distribution of grants and funding to the beneficiary charities is at the discretion of the trustees as set out in the Trust Deed, the charity's aim is to engage with all named beneficiaries and explore the opportunities for gonl funding to support them in furthering their own charitable objectives and providing benefit to the public through their operations. Vvhilsl operating the Charity, the trustees do not aim to distribute funds valued significantly in excess of income derived from investments and property, although it is within their remit lo do so. An objective of the charity is to provide long term funding and grants lo its beneficiaries. The Richard Oalley Trust No 2 delivers public benefit through the provision of financial grants to charitable organisalions registered with the Charity Commission. The activities of the charity are reslricled lo the provision and administration of grants to beneficiary charities, and trustees believe that all the activities undertaken by the charity are for the public benefit, and as part of their role as Iruslees for the organisalion ensure that future and proposed activities fil with the purposes of the charity, and that the charitable activities remain relevant lo beneficiaries. Trustee can confirm that they have had regard for the Charity Commission Public Benefit guidance as below.. The Public Benefit Requirement IPB11 Running a Charity IPB21 Reporting IPB31 The core objective of the charity is the making of grants and distribution of trust funds. This activity is restricted to registered charities named in, or legally added as permitted by, the original Trust deed. Applications for grant funding are not accepted from non-charitable organisations, nor those not named in, or added to, the original Trust Deed. Applications for funding from eligible organisation are formulated through on-going discussions and exploration of the beneficiaries needs and aims. Organisations must demonstrate clear furtherance of their own charitsble objectives. In addition, trustees will consider the suitability and fit with the aims of Page I The Richard Oatley Trust Number 2 Trustees, Report (continued) the Richard 0a￿eY No2 trust as sel out in the Trust deed and a wider letter of wishes provide by the original settlor of the Trust. Beneficiary payments totalled £594,355 for the year and can be attributed as follows against the beneficiary charities areas of operation. Farming and AgrIcU￿Ure Cancer research and patient support Rural Communities Historic Buildings and Landscapes £170,448 £261,387 £112,520 £ 50,000 Social investment does not form a material part of the charity's direct charitable and investment aclivilies, and therefore the Iruslees do not have specific social investment policies or objectives. However, the beneficiaries of grant funding may undertake activities or make investments that could be related to social investment, and they are expected to have suitable policies in pla￿. The benefits and risks of any such social investment proposed by a beneficiary would be considered by trustees before any funding is granted. The charity does not use volunteers in its operations. Achievement and performance The charity distributed £594,355 of grant funding during the year, representing 194g/o of ils income from investments and propety. The impact of this ftjnding can best be illustrated through the activities of the benefits of the grant funding. In the area of Farming and Agriculture grant funding has enabled the Frome and District Agricultural Society to further grow and develop the Frome Agriculture and Cheese Show for the benefit of local farmers, the agricultural sector and the wider pubie. A successful annual show allows the Society lo further its charitable objects through wider aclivilies. Funding awarded to the Faming Community Network has enabled this eharity to expand it's network of support advisors lo farmers and agricultural workers. In addition, grant funds have been used to develop new inib'atives encouraging farmers lo Meet on a social basis, in turn improving metal wellbeing and encouraging those in need of help lo seek support. Grants provided to the Royal Agricultural Benevolence Institute has enable additional staff capacity lo support farmers and agricultural workers. Grant funding to support cancer research and patient support has enable Can￿r Research UK to fund vital research projects, including pioneering blood testing for brain tumours at the University of Bristol. Research into the earfy detection of symptoms relating to ovarian, lung and pancreatic cancers has also been funded, again at Bristol University. Macmillan Cancer have benefited from funding and have delivered a wide range of benefits lo people living in Somerset and Wiltshire. Charity funding has paid for cancer specialist nursing posts which will provide long term, benefits lo local health care delivery. In addition, funding has enabled the delivery of two debt and benefit advice counsellors who support those receiving or recovering from cancer trealmenls. Further funds have been used to provide small grant payments through the Macmillan Hardship fund, providing financial support to those in most need whilst there al their most vulnerable. Funds have been made available lo the Frome Market Health Hub to enable preparation of plans to build a permanent home and also lo promote their services. Page 2 The Richard Oatley Trust Number 2 Trustees, Report (continued) The Bath Cancer Unit Support Group were added to the trusts list of approved charities during the year and were awaided funding to puichase equipment lo further improve the treatment of cancer patients. The small rural community of Rode has benefited through funding provided to the Hardington Vale Parochial Church Council in order to restore and repair the roof of their 1 5th century church. The National Trust were awarded funding in order to employ a development ranger al one of its countryside sites. Frome Lions have been provided with support for their funding campaigns during the year. Financial review Basis of preparation The financial statements have been prepared in accordance with the Statement of Recommended Practi￿.. Accounting and Reporting by Charities. Incoming resources are recognised once the charity has entillemenl lo the resources, it is certain the resources will be received, and the monetary value of the incoming resources can be measured with sufficient reliability. Resources expended - liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charity lo the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related lo the category. Grants payable are payments made to third parties in furtherance of the charitable objectives of the charity. The financial ststemenls show that the incoming resources for the year were £307,291 and that the closing holding balance at 31 March 2025 was £13,281,223. No incoming funds were identified as restricted income, and all incoming funds were secured in order to further the charity's objects. Unreslricled funds are held in order to generate income from which to award grants in furtherance of the charity's objective. Therefore, no specific reserve policy is in place. The value of cash al bank and in hand is reflective of the annual adminislralion costs anticipated along with foreseeable grant commitments. Investment policy and objectives The investment objectives of the trustees are To maintain the real value of the trustee investment portfolio over the longer term, while generating a relatively stable and sustainable return to fund grant making. To target a total return on the trustee investment portfolio of CPI plus 3 % per annum over the longer term, net of all costs. To distribute grants totalling around £600,000 per annum in total. This figure may vary from year to year depending on grant making opportunities and investment returns. Trustees may decide lo make larger grants irregularly if they consider that lo do so would further the objectives of the Irusl. The Iruslees will consider the following when adopting a level of risk associated with the trustee investment portfolio Page 3 The Richard Oatley Trust Number 2 Trustees, Report (continued) The specific investment risk associated with the portfolio, The capacity to withstand any drop in value to the portfolio, and Knowledge and experience of investment matters. Trustees believe the current risk profile is appropriate. The Iruslees consider the trust to be a balanced investor in line with the following A balanced investor is looking for investment growth greater than inflation and is prepa￿d to accept greater volatility of retums to achieve this. A balanced investor may hold up to 750A of Iheirportfolio in equity-risk assets and can accept short- tem? losses of up lo 20%. It is the opinion of the trustees that the underlying investment portfolios held remain suitable for the trusts, circumstsnces, objectives, and the agreed risk profile Plans for future periods The Iruslees have approved 3-year plans with the majority of the beneficiary charities in order lo provide either mid-term sustainable support, or to fund larger projects over a period of multiple years. Committed grant funding for 2025126 stands at £436,158, and for 2026127 £194,844 and are therefore in line with or below the anticipated respective annual income from investments and property. Further allocations are made within the business plan, allowing for grant funding of projects yet lo be fully considered or approved. Over the next three years lo March 2028 the trustees anlicipale these to total in the region of £1,000,000 The Richard Oalley Trust No 2 does not have an obligation lo hold funds in perpetuity, rather it has the responsibility to support the named charities with a level of support relevant to their impact and charitable benefits. Structure governanee and management The Richard Oalley Trust No2 is a charity registered with the Charity Commission on 2 March 2022, and established under the original Trust deed dated 21 August 2015. It has trustees, again as established in the Trust deed of 2015. The charity employs no staff and there are no plans lo change this in the foreseeable future. Professional services are pmvided as below and suitable lellers and terms of engagement are in place. Charity advice, benefi'ciary support and adminislralion are provided by Running Hare VCS, represented by Kevin Butcher. Accountancy services are provided by PKF Francis Clark, represented by Mike Butler. Legal services are provided by Mogers Drewell LLP, represented by Frank Collins. Page 4 The Richard Oatley Trust Number 2 Trustees, Report (continued) Reference and administrative details Status The organisation is a charitable Irusl, registered 2 March 2022 Governing document The Trust was established under the Trust Deed dated 21 August 2015 Charlty number 1198118 Worklng name Richard Oatley Foundation Reglstered offlce clo Mogers Drewett LLP St James House The Square Lower Bristol Road Bath BA2 3BH Trustees Frank Collins Mike Butler Employees None Charity advisors Kevin Butcher of Running Hare VCS Bankers Barclays Bank 36-38 Milsom Street Bath BA1 1DW Auditors Mark J Rees LLP Granville Hall Granville Road Leicester LE1 7RU Page 5 The Richard Oatley Trust Number 2 Statement of Trustees, Responsibilities The trustees are responsible for preparing the trustees. report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations. The law applicable to charities requires the Iruslees to prepare financial statements for each financial year which give a true and fair view of the slate of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to.. select suitable accounting policies and then apply them consislenlly., observe the methods and principles in the Charities SORP., make judgements and estimates that are reasonable and prudent., slate whether applicable accounting standards have been followed, subject lo any material departures disclosed and explained in the financial statements,. and prepare the financial statements on the going concern basis unless il is inappropriate to presume that the charity will continue in business. The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them lo ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008, and the provisions of the conslitulion. The trustees are also responsible for safeguarding the assets of the charity and hen￿ for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Iruslees are responsible for the mainlenanee and integrity of the corporate and financial information included on the charitable trusvs website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdielions. Approved by the trustees of the charity on and signed on its behalf by.. Michael John Butler Trustee Frank Collins Trustee Page 6 The Richard Oatley Trust Number 2 Independent Auditor's Report to the Members of The Richard Oatley Trust Number 2 Opinion We have audited the financial statements of The Richard Oatley Trust Number 2 (the 'charity'l for the year ended 31 March 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial ststements, 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 (United Kingdom Generally Accepted AccountinE Practicel. In our opinion the financial statements.. give a true and fair view of the state of the charity's affairs as at 31 March 2025 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended,. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice- and have been prepared in accordance with the requirements of the Charities Act 2011. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII 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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit 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 charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Page 7 The Richard Oatley Trust Number 2 Independent Auditor's Report to the Members of The Richard Oatley Trust Number 2 (continued) Other information The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to 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 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 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 to report in this regard. Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion.. the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements,. or the charity has not kept adequate accounting records,. or the financial statements are not in agreement with the accounting records and returns- or we have not received all the information and explanations we require for our audit. Responsibilities of trustees As explained more fully in the Statement of Trustees, Responsibilities, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. Page 8 The Richard Oatley Trust Number 2 Independent Auditor's Report to the Members of The Richard Oatley Trust Number 2 (continued) Our responsibilities for the audit of the financial ststements We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Art and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors 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 detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities outlined above, to detect material misstatements in respect of irregularities, including fraud. Owing to the inherent limitations of an audit. there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with ISA'S IUKI. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. We obtained an vnderstsnding of the legal and regulatory frameworks applicable to the charity and industry in which it operates through our general commercial experience. We determined that the following laws and reEulations were most significant.. Charities SORP IFRS 1021. We enquired of management concerning the charity's policies and procedures relating to.. the identification and compliance with laws and regulations. the detection and response to the risks of fraud. the internal controls inherent within the charity to mitigate fraud risk and non-compliance to laws and regulations. We enquired of management, whether they were aware of any instances of non-compliance with laws and regulations or whether they had any knowledge of actual, suspected or alleged fraud. We communicated relevant laws and ￿gUlationS and potential areas of fraud to all audit team members. We remained alert to any indications of fraud or non-compliance with laws and regulations throuEhout the audit. We have determined that the principal risk areas where material irregularities could occur were related to posting manual journal entries to manipulate financial performance, income recognition and significant one-off or unusual transactions. Page 9 The Richard Oatley Trust Number 2 Independent Auditor's Report to the Members of The Richard Oatley Trust Number 2 (continued) Our audit procedures were designed to respond in particular to these identified risks (including non- compliance with laws and regulations and fraud). Our audit procedures included but were not limited to.. A review of a sample of income transactions from all income streams to ensure income has been accurately recorded and to confirm amounts are recognised in the correct period. - A review of laws and regulations the charity is subject to, followed by compliance checks and discussion with management to ensure no instances of non-compliance. Addressing the risks of fraud through management override of controls by performing a journal entry test. We did not identify any matters during the course of our work that indicated non-compliance with laws and regulations or relating to fraud. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uklauditorsresponsibilities. This description forms part of our Report of the Independent Auditors. Use of our report This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an 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 charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed. Markj Re LLP Chartered Accountants and Statutory Auditors Granville Hall Granville Road Leicester LEI 7RU Date.. Page 10 The Richard Oatley Trust Number 2 Statement of Financial Activities Year Ended 31 March 2025 Unrestricted funds Totsl 2025 Total 2024 Note Income and Endowments from: Investment income 306,430 861 306,430 861 304,929 19,326 Other income Total income 307,291 307,291 324,255 Expendlture on: Raising funds Charitable activities 1155,7481 1608,5101 {155,7481 (608,5101 1100,3471 1822,2411 Total expenditure Gainsllosses on investment assets 1764,2581 1440,5001 {764,2581 1440,5001 1722,5881 1,591,936 Net incomellexpenditurel 1897,4671 {897,4671 1,193,603 Net movement in funds 1897,4671 1897,4671 1,193,603 Reconciliation of funds Total funds brought fotward 14,178,690 14,178,690 12,985,087 Total funds carried forward 12 13,281,223 13,281,223 14,178,690 All of the charity's activities derive from continuing operations during the above periods. The funds breakdown for 2024 is shown in note 12. The notes on pages 14 10 22 form an integral part of these fin8nci81 slalernentS Page 11 The Richard Oatley Trust Number 2 Balance Sheet 31 March 2025 2025 2024 Note Fixed assets Investments 13,221,178 14,130,721 Current assets Debtors 92,648 543,052 635.700 {430,7691 527,383 257,366 784,749 1573,3701 Cash at bank and in hand Creditors: Amounts falling due within one year 10 Net current assets 204,931 211,379 Total assets less current liabilities 13,426,107 14,342,100 1163,4101 Creditors: Amounts falling due after more than one year 11 {144,8841 Net assets 13,281,223 14,178,690 Funds ofthe charity: Unrestricted income funds Unrestricted funds 12 13,281,223 14,178,690 Total funds 13,281,223 14,178,690 The financial statements on pages 11 to 22 were approved by the trustees, and authorised for issue on and signed on their behalf by". Michael John Butler Trustee Fonk Collins Trustee The notes on pages 14 10 22 form an integral part of these fin8nci81 slalernentS Page 12 The Richard Oatley Trust Number 2 Cash Flow Statement Year Ended 31 March 2025 2025 2024 Note Cash flows from operating activities Net cash incomellexpendilurel 1897,4671 1,193,603 Adjustments to cash flows from non