SCOTTISH CHARITY NUMBER SC045392 ## TRUSTEES ANNUAL REPORT AND ACCOUNTS FOR THE ## YEAR ENDED 31[ST] MARCH 2025 ## **REPORT AND ACCOUNTS** |**CONTENTS PAGE**|| |---|---| |Legal and administrative information|2| |Foreword by Convenor|3| |Trustees' Report|5 to 7| |Report of the Independent Examiner|8| |Receipts and Payments Account|9| |Statement of Balances|10| |Notes to the accounts|11| ## **LEGAL AND ADMINISTRATIVE INFORMATION** ## **Trustees** Convenor and Secretary Treasurer ## **Charity number** SC045392 ## **Registered office** 2 ## ANNUAL REPORT to 31 March 2025 ## **Foreword by Kate Traill Price, Convenor/Secretary.** I am very pleased to present the tenth annual report of the Orkney Sheep Foundation, set up in 2015 to support the keeping of the native seaweed-eating sheep on the island of North Ronaldsay. A lot has changed in 10 years, and much progress made. Thanks to the various Sheep Dyke Wardens and Sheep Festivals in that time, there is much more of the stone Sheep Dyke in serviceable condition, making the burden on maintenance less heavy for the sheep keepers. However, there is still much to do, as there are areas where the Sheep Festival is unable to work until better foundations have been put in place. This is project remains pending, until other island projects are completed. ## Sheep Festival Another great Sheep Festival took place in 2024 and the series continues to go from strength to strength, and 229 metres of the Dyke were rebuilt. The format continued in the five-day, one-week format, which fits neatly between 2 mid-week ferries. As well as 10 sessions of 3 hours working on the dyke, there were workshops led by an island artist and the usual dance and football match. We are hugely grateful to the Lennox Hannay Charitable Trust and the Wyfold Charitable Trust, without whose support the Festival would not be the success that it is. Again, OSF Trustees ## Other projects Progress on a Heritage Lottery Fund application and Phase One of the Sheepdyke Repair Project remains pending. It will be completed in association with the North Ronaldsay Trust and Community Development Manager, who are currently engaged with other projects: It was exciting to see the arrival at the end of the 2024 Sheep Festival of the steelwork for a new building for the wool mill. The following year, the building was just complete, and a second building started alongside it, for other sheep products. The OSF stands ready to provide match funding to the Sheep Dyke project at the appropriate time. ## Going forward The OSF continues to collaborate with and work alongside island bodies such as The North Ronaldsay Trust, The North Ronaldsay Community Association, The Sheep Court and the North Ronaldsay Development Group. By working together, our combined message to the outside world and to funding groups is clearer and stronger. We very much welcome the input and opinions of those bodies working alongside us, as well as those of island residents. We reflect on a year of progress and achievements and 3 look to the future with optimism for The Orkney Sheep Foundation and the island-based bodies it supports. 4 ## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2025** The trustees present their report and accounts for the year ended 31 March 2025. ## **Structure, governance and management** The Orkney Sheep Foundation SCIO, also known as ‘the OSF’, is a Scottish Charitable Incorporated Organisation (SCIO), registered charity number SC045392, formed on 2 February 2015. The purposes and administration arrangements of the SCIO are set out in its constitution. The trustees who are members of the unit management committee and who served during the period were: Reappointed December 2024 Reappointed December 2024 Reappointed December 2024 Reappointed December 2024 Reappointed December 2024 The OSF is a single tier Scottish Charitable Incorporated Organisation (SCIO) with a current Board of five trustees and a capacity for a maximum of seven board members. Short biographies of the board members appear on the OSF Website: www.theorkneysheepfoundation.org.uk. At each AGM, all the charity trustees must retire from office but may then be re-elected at this time. The normal operating procedure for the Board is by periodic video meetings supplemented by face-to-face meetings and email exchanges as required. The Board maintains a register of Trustees and a register of Trustee interests, the latter being a standing agenda item subject to declaration at the commencement of every Board meeting. The Board has concentrated on developing arguments and evidence in support of fund-raising applications directed towards researched and selected potential sources. In the past year the emphasis has remained on securing working partnerships with other organisations, and during the year this was focused in the OSF’s North Ronaldsay Sheep Dyke Advisory Group. The trustees have assessed the major risks to which the charity is exposed and are satisfied that systems are in place to mitigate exposure to these. ## **Objectives and activities** The charity's objectives are to advance environmental protection and animal welfare by ensuring the conservation of pure-bred North Ronaldsay sheep on the Island of North Ronaldsay and to advance heritage by supporting the sustainable production of the breed by traditional methods through the restoration and maintenance of the Sheep Dyke. In view of the global importance of conserving an unique breed, a wider constituency of farmers, stockbreeders and the public may benefit from the charity's activities. A collateral benefit is the extent to which OSF activity may have stimulated a wider regeneration plan for the island. North Ronaldsay Sheep are the sole surviving example of the seaweed eating sheep of the North Isles which are directly linked to those whose archaeological remains have been discovered in the settlement of Skara Brae on Mainland Orkney. Their place in the evolution of the domesticated species is becoming well-documented and provides an insight into the cultural and economic importance of these unique, yet endangered animals. 5 The Sheep Dyke is the key to their survival and management on this remote northern outpost of the British Isles. This Grade A listed structure dates from 1832 and was built to confine the native sheep to the shoreline, when changes in land use and farming methods forced the islanders to make more productive use of their inland pasture. While the native sheep breed is historically important, it also plays a key role in the future of the island community since the unique meat and wool currently attracts commercial attention. ## **North Ronaldsay Sheep Festival** The Sheep Festival, first held in 2016, continues to go from strength to strength, and we are pleased to say that SheepFest’24, in the year that we report it was a great success. The reconstruction of the dyke through the efforts of volunteers gives visible and practical meaning to the OSF’s campaign, and this has continued in the year. The role of Festival Director was served by Kate Traill Price in 2024, but passed to new hands in 2025. ## **Working with Partners** Our association with the North Ronaldsay Trust remains strong, and we have a number of trustees in common. We are in touch frequently with the North Ronaldsay Community Association and the Sheep Court, both as bodies and individuals. Our links remain with the Rare Breeds Survival Trust (RBST), and it is here that the OSF’s origins lie. The RBST continues to list the native sheep of North Ronaldsay in their 2025-26 watchlist as a Priority, the highest category. ## **Volunteers** We remain encouraged by the public awareness of the island resulting from Sheep Festival and OSF activities and the ongoing benefits of social media updates have maintained attention on the island particularly through the success of the North Ronaldsay Sheep Festival. ## **Funding and Accounts** We are grateful to the Lennox Hannay Foundation for their support for the OSF and the Sheep Festival. We must also thank the many other private individuals, without whose donations the OSF could not function as it does. ## **Financial review** The charity received £16,744 during the period and spent £8,887 leaving a surplus of £7,857. It is the policy of the OSF to build up unrestricted funds, which are the free reserves of the charity, to a level which is sufficient to cover potential requirements for projected needs. The forthcoming repair projects and funding applications are high in our minds in this respect. The level of unrestricted funds held at the year-end was £45,222 (prior year £26,473). Restricted funds are funds which are used in accordance with the specific restrictions imposed by donors or which have been raised by the charity for a specific purpose. At the year end the OSF held £10,026 (prior year £18,749) in restricted funds for the North Ronaldsay Sheep Festival. 6 ## **Donated services** The charity is largely dependent on the efforts provided by volunteers, comprising those who serve on committees, and the volunteer dyke builders at the Sheep Festival. It is not practical to quantify the time given by the members of the Board of Trustees and the organizing committee of the Sheep Festival, although contributions in kind are calculated and may be used within funding applications and to support matched funding bids. Report approved by the Trustees and signed on behalf of the Board 30 December 2025 7 ## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE ORKNEY SHEEP FOUNDATION SCIO** I report on the accounts of the charity for the year ended 31 March 2025 set out on pages 9 to 11. ## **Respective responsibilities of trustees and independent examiner** The charity’s trustees are responsible for the preparation of the accounts in accordance with the terms of the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The charity trustees consider that the audit requirement of Regulation 10(1) (a) to (c) of the Accounts Regulations does not apply. It is my responsibility to examine the accounts as required under section 44(1) (c) of the Act and to state whether particular matters have come to my attention. ## **Basis of independent examiner’s statement** My examination is carried out in accordance with Regulation 11 of the Charities Accounts (Scotland) Regulations 2006. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeks explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the accounts. ## **Independent examiner's statement** In the course of my examination, no matter has come to my attention: - (a) which gives me reasonable cause to believe that in any material respect the requirements: - i) to keep accounting records in accordance with Section 44(1) (a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations, and - ii) to prepare accounts which accord with the accounting records and comply with Regulation 8 of 2006 Accounts Regulations have not been met, and - (b) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. 8 ## **RECEIPTS AND PAYMENTS ACCOUNT FOR THE YEAR ENDED 31 MARCH 2025** ||**Unrestricted**|**Restricted**|**2025**|**2024**| |---|---|---|---|---| ||**funds**|**funds**||| |**Receipts**|**£**|**£**|**£**|**£**| |Donations|642|-|642|745| |Grants received|15,000|-|15,000|10,000| |Interest received|998|-|998|779| |Other receipts|-|104|104|624| |**Total receipts**|16,640|104|16,744|12,148| |**Payments**||||| |_Payments for charitable activities_||||| |Sheep Festival costs|-|8,827|8,827|6,967| |Transfer of restricted funds|-|-|-|800| |Advertising and publicity|-|-|-|-| |Bank Charges|60|-|60|60| |Insurance|-|-|-|-| |Clerical and secretarial|-|-|-|-| |Independent Examiner|-|-|-|488| |Survey costs|-|-|-|-| |Website|-|-|-|445| |**Total resources expended**|60|8,827|8,887|8,760| |||||| |**Total payments**|60|8,827|8,887|8,760| |||||| |Net receipts/(payments)|16,580|(8,723)|7,857|3,388| |||||| |**Surplus/(Deficit) for the year**|16,580|(8,723)|7,857|3,388| 9 ## **STATEMENT OF BALANCES AS AT 31 MARCH 2025** ||**Unrestricted**|**Restricted**|**2025**|**2024**| |---|---|---|---|---| ||**funds**|**funds**||| |**Bank and cash in hand**|**£**|**£**|**£**|**£**| |Opening balances|26,473|18,749|45,222|41,834| |Surplus/(Deficit) for year|16,580|(8,723)|7,857|3,388| |Closing balances|43,053|10,026|53,079|45,222| |**Reserves**||||| |General fund|43,053|-|43,053|26,473| |Restricted funds|-|10,026|10,026|18,749| |Closing balances|43,053|10,026|53,079|45,222| Approved by the Trustees on 30 December 2025 and signed on their behalf 10 ## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2025** ## **1 Accounting policies** ## **1.1 Basis of preparation** The accounts have been prepared on the Receipts and Payments basis in accordance with the Charities and Trustees Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. ## **1.2 Incoming resources** All incoming resources are included in incoming resources when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. Income is deferred only when the charity must fulfil conditions before becoming entitled to it or where the donor specifies that the income is to be expended in a future period. When donors specify that income is for a particular restricted purpose, which does not amount to preconditions regarding entitlement, this income is included in the incoming resources of restricted funds when receivable. Grants from the Government and other agencies are included as income from activities in furtherance of the charity's objects where these amount to a contract for services, but as donations where the money is given in response to an appeal or with greater freedom of use, for example, government block grants. ## **1.3 Resources expended** All expenditure is included as payment is made and has been classified under headings that aggregate all costs related to that category. Management and administration costs are those incurred in connection with the administration of the charity. ## **1.4 Costs of managing and administering the charity** These represent the costs incurred by finance, human resources, accounting, legal and other costs attributable to the management of the charity's assets, organisational administration and compliance with constitutional and statutory requirements. ## **1.5 Fund accounting** Unrestricted funds are available for use at the discretion of the directors in furtherance of the general objectives of the charity and which have not been designated for other purposes. Restricted funds may only be used for specific purposes. Restrictions arise when specified by the donor or when funds are raised for specific purposes. ## **2 Employees/Trustees remuneration** The charity did not employ anyone during the year and consequently no employee earned more than £60,000. Four OSF trustees received payment aggregating to £2,815 for service as Sheep Festival Crew. 11