The Badley Memorial Trust A Charitable Incorporated Organisation Registered Charity Number: 1203013 Report of the Trustees and Financial Statements Year Ended 31 Ma￿h 2025 Hlggs LLP 3 Waterfront Business Park Brierley Hill West Mldlands DY5 ILX The Badley Memorial Trust Index to the Financial Statements Year Ended 31 March 2025 Page Contents Reference and Admlnistratlve Information Trustees, Annual Report statement of Flnandal Activltles Balance Sheet 10-12 Notes to the Accounts 13 Independent Examlnerfs Report The Badley Memorlal Trust Reference and Admlnlstratlve Informatlon Year ended 31 Mareh 2025 Governlng Document The Charlty Is govemed by the CIO Foundation Constltutlon dated 10 May 2023. The Charlty's registereAI charlty number is 1203013. Trustees David John Stanley (Chair) Nicolas Anthony 8arlow Julle Dawn Bull Alan Johnson Anne Elizabeth Mlllward Michael john Shaw Elalne Ann Taylor Stephen James Waltho Michael Stuart Wllliams Secretary Ms Klrsty McEwen Banker• CAF Bank Ltd 25 Kings Hlll Avenue Klngs Hill West Malllng Kent ME19 4JQ Solicltors Hlggs LLP 3 Waterfront Business Park Brlerley Hlll West Mldlands DY5 ILX Investment Managers Evelyn Partners 103 Colmore Row Blrmlngham B3 3AG The Badley Memorial Trust Trustees. Annual Report Year ended 31 March 2025 The Trustees present their annual report and financial statements of the Charity for the year ended 31 March 2025. The flnancial statements have been prepared In accordance with the accountlng policies set out in note I to the accounts and comply with the Charity'5 goveming docurrTrent, the Charities Act 2011 and the Statement of Recommended Practice appllcable to the charities preparFng their accounts with the Financial Reporting Standard applicable on I JanLtrary 2019. Structure, Governance and Mana9ement The Charfty was ￿gIStered with the Charity Commission on IQ May 2023 under reglstered charity number 1203013, and is constltsjted under the CIO Foundation Constitution dated 10 May 2023 ( the Governlng Do¢urnent'). The Charity does not actlvely fundraise and seek5 to continue charitable worf< through the careful stewardship of its exi5tirTrg resources. Thè Gov@mino Document provldes for a mlnlmum of three Trustees and a maximum of ￿ve1Ve Trustees. The Trustee board must con51St Df the followlng: Not More than three Nominatlve Trustees At least three and not more than nine Appointed Trustees Nomlnatlve Trustees Nominative TNstees are appointed by their respective appointing bodies for a term of office of flve years at a meeting convened and held according to the ordinary prartlce ef the Jppointing bodles. The existing Trustees have an absolute discretion as to whether to approve or reject nomination. Nomlnatlve Trustees are appointed by Dudley Metropolltan Borough Council and lack Country Healthcare NHS Foundation Trust. There must be not more than three Nominative Trustees on the Board of Trustees. Nominative Trustees for each organisètion are a5 follow5.. Dudley Metropolitan Borough Council Elalne Ann Taylor 81ack Country Healthca￿ NHS Foundation Trust Michael John Shaw Appolnted Trustees Appointed Trustees are appointed under clause 10 of the Governing Document for a term of office of five years, by vlrtue of thelr speclal knowledge of the area of benefit, through resldence, employment or otherwise. The Governing Documents provides for the appointment of a mlnlmum of three and a maximum of nine Appolnted Trustees. The Co-optatlve frustees are as follows: Nlcolas Anthony Barlow Julle Dawn Bull Alan Johnson Anne Elizabeth Millward David John Stanley Stephen Jamès Waltho MBE Michael Stuart Wllliams The Badley Memorial Trust Trustees, Annual Report Year ended 31 March 2025 Trustees must hold at least one meeting each year, either In person or by suitable ele¢troni¢ means. The quortsm at any meetlng is at least one third of the total number of Trustees at the tirne, or two, whichever Is the greater. At the Trustees, meeting5, the Trustee5 agree the broad strategy and a￿a5 of artlvities for the Charltyi Including consideration of grant making, investment, reserves and risk management policies and performance. The day to day admlnistration of grants and the processlng and handling of applications prior to consideration by the Trustees is delegated to the 5e¢retary. The Trustee5 would take account of the recommendations of the ICSA best practice guide 'Recrultment, Appointtnent and Inductlon of Charity Trustee5' should the need to recruit new Trustee5 arise. The Trustees would look to recruit in Ilght of an approprlate ski115 audit of the current Board and taking into account the experIen￿, expertlse and diversity of the current Board, as well as their knowledge of the Charity's area of benefit and beneficlal class. New Trustees may be sought by open advertisement or through a dialogue with major grant clpients and local community groups ￿SpeCtIng the ethos of the Charfty to contlnue the charitable work intended by the sèttlors, the Trustees actively seek those with a knowledge of the local area when considering any prospective candidate. The ultimate decision on selection is a matter for the Trustees. On appointment new Trustees sign a Trustee Declaration and Undertakin9 commltting them to the giving of théir time and expertise. It also confims thelr ability to act in the role Df Trustees. The indurtion process ha5 been changed to follow the ICSA good practice guide with a forrnal inductlon programme for any newly appolnted trustee being led by the Secretary, to Include initial trainlng In the gr4nt maklng process, the duties and responslbilltles of the Trustees and the role of any sub commlttees. The welcome pack Includes, amongst Dther Information and guidance, a brlef history of the Trust, copy of recent Trustee land sub committee) mlnutes, a copy of the last three years of annual reports and accounts, a copy of the Governing Document and a copy of the Charity Commissign's guidance 'The Essential Trustee.. What You Need to Know, and 'Charities and Public Benefit,. The Twstees intend in the upcomSng year, wlth the support of the Secretary, to developing a code of condurt for Trustees including formal statements of roles and responsibilities and to undertake work on the Charity Govemance Code. All Trustees give of their Elme freely and no Tmstee remuneration was paid In the year. Trustees are entitled to claim rèasonable out of pocket expenses and where they do those are noted in the accounts. Trustees are required to disdose annually land as they arise) any potentlal interests whlch might conflict and register them with the Secretary and In accordance with the Charity's written conflicts of interest polity. Rlsk Management The Trustees have cgnsidered the major risks to which the Charlty is exposed anij have reviewed those risks and establishecl systems and procedures to manage those rlsks. The major financlal risk is the varlabillty of Investment retums on the portfolio and it5 impart en Sncome levels and capital growth. The Trustees have actively sought to manage this risk by appointlng Evelyn Partners as Discretlonary Managers of the investment portfolio. Their role is tc* monitor the performance of the ptsrtfolio, to take appropriate action to mitigate any loss to the portfolio, and to ensure that the objectives as detailed in the Investment Poliry Statement are following and reviewed annually. The Badley Memorial Trust Trustees, Annual Report Year ended 31 March 2025 The major operational risk Is the extent to which grants awarded to individuals and charitable or not for profit organisations advances the objects of the CharSty and demonstrate sufflcient public benefit. The Charity has managed its risk by retsining Trustees of sufflclent expertlse and experlence, and through the Quality of the institutions and the people who they support. In addition, the Trustees rely on the Secretary to undertake appropriate and proportionate due diligence on applications and ensure all grant oivlng retains a focus on the publlc benefi't. The major regulatory impact of the Common Reporting Standard {'the CRS?, on the operatlon of the Charity. CRS is being an Internatlonal tax transparency reglme aimed at preventlng tax evaslon. CRS came into for￿ from l January 2016 and the Charity Is now reaulred to provlde Informatlon about their beneficiarles, tax residency status to HMRC, who will then share this Informatlon with the appropriate tax authorlty in other jurlsdictions. The Charity Is subject to this règlme because It relies on investments for more than 50% of Its Income and those investments a￿ professionally managed by a flnancial Institution tjnder discretionary mandate. Thls means the Trustees are required to carry out due dlligence to establish a tax ￿Sidenry status of all beneficlaries, keep records of efforts to comply with the regime, register with HMRC as a financial Institution l-Financial Institutitrn") If they have reporting requirements and report to HMRC if requlred. The grant applicatlon process is reviewed annually and the grant applicatlon form expanded to collert the necessary dLte diligence information that is required order to establlsh tax resldency status of all grant recipients, both Individuals and charity and not for profit organisations. This includes additlonal information including tax resldent jurisdictlon, tax identification number {for indTrvldualsl and entity status (for organisatlons). The Trustees wlll keep this under review. Objects and Activitie$ for the Public Beneflt The objects of the Charlty are.. "3.1 The relief of sickness and the preseNation of health,. and 3.2 The kElief of those in need by reason of ill-health or dis3bilityi among people residing permanently or temporarily in the Metrppolitan Borough of Dudley ("the Area OF B•nefit-) by such charitable means as the Trustees shall from time to time think fit. The Trustees confirm that they have ￿ferred to the guldance contained in the Charity Commission's general guidan¢e on public benefit when reviewing the Charity's objects and purposes and in plannlng future actlvitiés and setting the grant maklng policy for the year. The Trustees have set a Grant Making Pollcy and review this on an annual basis. This is available on ￿qUest. The Trustees have a wide discretion to make grants to charlties and for charltable purposes. The Trustees confSrm that they have referred to the guldance contained In the Charity Commission's general guidance on publi¢ beneflt when reviewing the CharSty's oblerts and purposes and in plannlng future actlvltles and settlng the grant making pollcy for the year. The Charity carrles out its objects by provSding grants to Indlviduals (for exclusively charitable purposes) and to charitable and not for profit organisations Wlthln the a￿a of benefit {for excluslvely charitable purposes). The Badley Memorial Trust Trustees. Annual Report Year ended 31 March 2025 By focusing on these a￿4$, the Charity achieves its strategie pritsrity of maintaining a stable grant making programme, wlth balancing support to Individuals and to charities and voluntary organisations Ifor exclusively charStable purposes). Grant Making Ptslicy The Charity has establlshed its grant making policy to achieve Its objects for the public benefit, to Improve the Ilves of individuals within the area of benefit. The Trustee5 review the grant makrng ptslicy annually to ensure it reflects the Charfty's objects and thereby adVan￿S public benefit. The Trusteès have power to spend or retaln both capital and income. Thus both Income and capital is expendable without distinctlon In fijrtherance of the objects. The Charlty's beneficlaries are individual's resident (either permanently or temporarily) in the Metropolitan Borough of Dudley who have both a medlcal need {either physical or mental) ènd are In financlal need. The general pollcy of the Trustees is not to glve retrospective grants and the Trustees will only consider one application from any appllcant. Grant Making Procedure Applications can only be consldered If they are on the Charlty's standard application form. The application form must be completed and returned (together with a copy of any supporting informatlon relevant to the applrcation) to the Secretary at least four weeks before the meetln9 at which the application Is to be consldered. The Trustees meet fours times a year to consider applications. Et IS the policy of the Trustees to consider grants on an equal opportunltles basis, ￿gardleSS of gender, religion and ethn4c background. Public Benefit The Trustees confirm that they have refe￿d to the infomiation contained in the Charlty Commi$5i0n's general guidance on publlc benefit whèn reviewing the Charity's objects 4nd activities, their grant making policy and plans for future period. The objects and activities of the Charlty are largely determined by the provisions of the Tnjst deed, and from there the Trustees exerclse a discretion In considering how best to meet the public benefit test and ensure that as many inijividuals and charftable and not for profit organisations with particular needs will gain advantage. Monitorin9 and Achievement The Trustees have continued with an aspiratlon to seek a reasonable ￿t￿M over the long tem. It is intende(J that the portfolio will show a welcomed recovery and that the long term objectlves to mèèt income needs and grow the capital are obtainable. Financlal Review The Charlty's work is entirely rellant on Income and investment returns from Its capltal. As at 31 March 2025, the value of the capltal fund stood at £2,671,506.57. During thè year the Income of the Charity was £83,261.48. The Badley Memorial Trust Trustees, Annual Report Year ended 31 March 2025 Investment Pollcy and Pèrformance The investment powers of the Trustees are wide and allow the Trustees to Invest funds In any matter (after taklng such advlce as they considèr necessary) and having regard to the suitabillty of investments and need for diversification. The principal investment holdings of the Charity comprlse ftjnds and portfolios OF quoted securities. As at 31 Mareh 2025, it Is intended the value wi51 represent IOOO/o of the Charity's invèstments. The managernent of the portfolio is undertaken on a discretionary management basis by Evelyn Partners and the written Investment policy is reviewed on at least arh annual basls by the Secretary in ¢onJunction with the investment managers and ultlmately approved by the Trustee5. The discretionary managers a￿ instnjcted to maxlmlse the income on the portfolio whllst preseTvlng the capital, within the constraints of a medium rlsk investment portfolio. Following investment advlce, the Trustees agreed to retain cash on deposit wlth Evelyn Partners for the capital account of £7,965.93 and for the broker account of £33,444.85. Cash in bank with CAF Bank Ltd of É90,562.79. Rèservos Policy The whole of the Charity's capital Is expendable and this distlnction between capltal and Income is not relevant. The Trustees appreciate that the general prtnciples of charity law require Trustees to spend thelr income within a reasonable perlod of recelpt. The Trustees have Set and agreed a pollcy which broadly identlfles the framework withln which the Charity wlll operate Its reserves. The intention is that the Charlty will retaSn an appropriate and reasonable level of reserves whilst concurrently ensurlng that it uses the income in a manner that is within the objects at the best Interests of the Charity and bts beneficlaries. Slnce the Charity receives all of its income from the Investment portfollo, the Trustees are mindful that the source Of income can be volatlle and subject to sudden changes in the market. They are concerned that in any year there is a rlsk that they cannot meet their ongoing administration and professional expense commltments as ènd when they arise. due to any fluctuations In the market which may prevent or signlficant1y reduce income. The Trustees have therefore considered, in conjunction with the professlonal advisers, the level of reserves to retain from surplus unrestricted funds. They have decided to bulld up a pot of reserves equivalent to one year's adminlstrative and professional expenses but excluding grant commitments. This will ensure that should there be any fluctuations in the market which redu￿ the income avallable for distribution, the Charity can use its ￿SerVeS to continue to meet its obligations and Ilabilities as and when they fall due. Plan for Future Period$ The Trustees belleve their grants will translate Into signiflcant public benefit. In cementin9 the arrangements already in place, and beginning wlth its activities as set out ID this report, so that the many and varied charitable and not for profit organisations, and Individuals may continue to beneflt in real terms from its financial support, the Charity airns to provide a long term commitment and thereby encourage and support individuals and charitable and not for profit organisations. The intentlon is to establlsh a programme of grant giving which wlll translate into $1gniflcant public beneflt. The Trustees will fo¢us on those indivlduals and organisotlons who would beneflt In real terms (impact) from its financial support, thus provldlng and ensurlng a longer- term commitment to support. The Badley Memorial Trust Trustees, Annual Report Year ended 31 Marth 2025 Trustees. Responsibilities Sn Relatlon to thè Flnanclal Statements The Trustees are responslble for preparing the Trustees. Report and the financlal statements in accordance wlth applicable law and regulatlons and Unlted Kingdom Accounting Standards. The law applicable to charities in England and Wales required thè Trustees to give a true and fair view of the state tsf affairs of the Charity and of the Incoming resources and application of resource5, including income and expenditure of the Charlty for that period. In p￿parIng these financial statsments, the Trustees are requlred to.. •selert suitable accounting policies and then apply them consistèntly- •observe the methods and principles of the Charities SORP,. •make Judgement5 and e5timate5 that are reasonable and prudent: state whether applicable accountlng Standards have been followed, subject to any materlal departures dlsclosed and explained in the finencial statements; and •prepare the finènci61 statements on the going concern basis unless it is inappropriate to presume that the Charity will contlnue In operation. The Trustees a￿ responsible for keeping adequate accountlng records that arè sufficient to show and explain the Charlty's transactions and disclose with reasonable accuracy at any tlme the flnancial posltlon of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the Governlng Document. They are also ￿$￿nsIble for safeguarding the assets of the Charlty and hence for taking reasonable steps For the prevention and detection of fraud any other irregularities. The Trustees are responsible for the maintenance and integrity of the Charity and financlal Informatlon included on the Reolster of Charities. Approved by the Trustees and signed on thelr behalf by-. Mr D J Stanley Chalr The Badley Memorial Trust Statement of Financial Artivitle$ Yèar endèd 31 March 2025 Notes Unrestrirttd Funds Total Fund5 2025 2024 Income resource5: Income resource5 frorn generated funds Prior year adjustment 80,776.83 2 484.65 80,776.83 2 484.65 Total incomin9 rtsouro$ Resource$ expended: Investment management costs Charitable artivities Cost of grant making 83,261.48 83,261.48 18,029.64 25 127.70 43,157.34 L8,029.64 25 127.70 43,157.34 Govemance c05t5 15 932.75 15 932.75 Total resources expended 59,090.09 59,090.09 Net (outgolno}/incoming resources before other recognisetj galns and losses 24,171.39 24, 171.39 Capital transferred from The Badley Memorlèl Trust Realised gainslllosses) on invesiment a55ets 2,663.439.63 2,663,439.63 53.736.07 53,736.07 Unrealised gainslllossesl on Investment assets 169,840.52) (69,840.521 Net movement in lunds Reconciliètion of funds Total funds brought forward Total funds carriéd forward 2 671 506.57 2 671 506.57 The Badley MemorSal Trust Balance Sheet Year ended 31 March 2025 Notes Unre•tricted Funds Total Funds 2025 2024 Flxed Assets Investments 2 547 498.93 2 547 498,93 Total Flxed Assets 2,547,498.93 2,547,498.93 Current Assets Cash with bank and Investment managers Debtors 124,007.64 124,007.64 Totsl curr•nt assets 124 007.64 124 007.64 Lbabilities Creditors falling due within one year Net current assets 124 007.64 124 007.64 Total assets less ￿rrent Ilabllltles 2,671,506.57 2,671,506.57 Creditors falllng due after more than one year Not assets 2 671 506.57 2 671 506.57 Th¢ funds of the Charity Unrestrlcted Income funds 2 671506.57 2 671 506.57 Total Charfty lunds 2 671506.57 2 671 506.57 The note5 on pages 10 to 12 form a part of these accounts. Approved by the Trustees and signed on thelr behalf by: Mr D J Stènley Chalr The Badley Memorlal Trust Notes to the Accounts Year endod 31 March 2025 l. Accountlng policles (a) Basls of preparation The financial statements have been prepared under the histrjrlc cost conventlon, wlth the exception thèt investments are Included at market value. The financlal statements have been prepared in accordance wlth the Stratement of Recommended practi￿.. Accounting and Re￿rtIng by Charitles (FRSEE) Issued In January 2015 and applicable UK Accountlng Standards and the Charftles Act 2011. (b) Funds structure The Charlty ha5 one fund, an unrestricted Income fund. Thls Is a fund which the Trustees are free to use for any purpose In furtheran￿ of the charitsble objects. Unrestrlded funds Include deslgnated funds where the Trustees, at their dlscretion, have created a fund for a specific (c) Incoming Msources All incomlng resources are recogn15ed once the Charlty has entitlement to the resources, it is rtaln that the resOur￿S will be re￿Ived and the monetary value of incomlng resources can be measured wlth sufflclent rellablllty. (d) Expendlture on ralslng funds Liabilities are recogniseé as resources expended as soon as there is a legal or construrtlve obllgatlon comrnitting the Charity to the expendlture. All expenditure Is accounted for on an accruals basls and has been dasslfied under headlngs that aggregate all costs related to the Grants payable are payments made to tharltable organlsatlons In the furtherance of the charitable objects of the trust. Single or multi-year grants are accountesj for when elther the reclpient has a ￿aSOnable expectatlon that they wlll recelve a grant and the Trustees have greed to pay the grant wlthout condltlon, or the reciplent ha5 a reasonable expectation that they wlll recelve a grant and any conditlon attachlng to the grant Is outslde the control of the Charlty. Provlslons for grants arè made when the Intentlon to make a grant has been communlcated to the reclplent but there is uncertalnty about either the tlmlng of the grant or the amount of the grant payable. (e) Expendlture on generating fund$ The costs of generatbng funds cons15ts of Investment management feesi legal fees, accountsncy fees and other governance and regulatory fees. (Q Charltable artlvltles The cost of charitable actlvltles Includes grants made, (g) Governance Costs Governance costs eompr15e all costs involvlng the publlc accountablllty of the Charfty and Sts Complian￿ wlth regulatlon and good practice. These costs Include costs related to the pryration of the accounts, the Indepèndent examlnation fee and legal fees. (h) Flxed asset Investment Investments are stated at market value a5 at the balance sheet date. The statement of flnanclal activities Includes the net galn and105ses ar151ng on revaluation and disposals throughout the {1} Rea115ed galns and losses All (Jalns and losses are taken to the Ststement of Flnancial Activities as they arise. Reallsed galns and10sses on Investments are calculated as the difference between sales prO￿ed5 and opening market value (purchase date If later). Unreallsed 9alns and losses are calculated os the dlfferEnce between and market value at the year end and openlng market value {or purchase date If later). Reali5ed and unrealised galns are not separated in the Statement of Flnancial Attlvities. io The Badley Memorial Trust Notes to th• Accounts Year ended 31 March 2025 ai Contlngent Ilabllltlej and provlslons In accordance wlth the SORP, a contlngent Ilablllty Is disdosed for thosè grants. which do not represent liabillties, where the po555ble obllgatlon, whlth artses from past events, wlll only be conflmed by the ￿CUrrentr of one or fflore Un￿rtafin future events not wholly wlthln the Trustees, control. Provlslons are recognlsed those grants where there Is uncertainty as to the tlmlng or amount, and any uncertalnty regardlng the amount 15 more than one of determlnlng a basls for ￿aSonable estimatlon of the Ilablllty arlslng from that construttlve obllgatlon, 2. Related party transaction$ and Trustees, remuneratFon There were no related party transactions or Trustees. remu￿ratIon pald for the flnanclal year endlng 31 March 2025. 3. Investment Inc