Cleveland Bay Horse Society of the United Kingdom (a company limited by guarantee) Trustees report and unaudited financial statements

Transcription

1 Cleveland Bay Horse Society of the United Kingdom Trustees report and unaudited financial statements Company no: Charity no:

2 Cleveland Bay Horse Society of the United Kingdom Financial statements Contents Page Legal & administrative information 1 Trustees report 2-4 Independent examiner's report 5 Statement of financial activities 6 Balance sheet 7-8 Notes to the financial statements 9-15 The following page is not part of the financial statements: Income and expenditure account 16-17

3 Cleveland Bay Horse Society of the United Kingdom Legal & administrative information Charity name Cleveland Bay Horse Society of the United Kingdom (Limited by Guarantee) Company Number Charity Registration Number (England & Wales) Registered Office Regional Agricultural Society Great Yorkshire Showground Harrogate North Yorkshire Trustees Mrs S M Cutts Mrs J Morgan Mrs C Deville-Lindsay Mr H Edmunds Mrs E A Worthy Mrs M R Brown Mrs C M Lea Mrs S M Anderson Mrs H Ketley Mrs C A Scurrah Mrs L Skeats Mr M R Stonehouse Mrs S E Turner Miss J E Moore Mrs L Orange (retired) Secretary Mrs S M Anderson Independent examiners The Barker Partnership Chartered Accountants 24 High Street Pateley Bridge Harrogate HG3 5JU Bankers HSBC Bank plc 13 Parliament Street York YO1 8XS Page 1

4 Cleveland Bay Horse Society of the United Kingdom Trustees annual report Constitution Governing document The charity is controlled by its Articles of Association and constitutes a limited company, limited by guarantee, as defined by Companies Act Recruitment and appointment of new trustees All trustees are council members. One third of the members of council shall retire in rotation at the annual general meeting (AGM) each year and no trustee can serve more than 6 consecutive years. The society members elect new council members at the AGM. Organisational structure The policy and general management of the affairs of the company are directed by the council, which is made up of trustees. The council totals 15 from which a chair and a vice chair are appointed. The day to day office duties are overseen by the Chief Officer. The council meets 6 times a year to conduct the formal business of the Society. Risk management The society reviews risk at its council meetings held 6 times per year. An accounts overview now forms part of these meetings. The principle identified risks are loss of revenue due to reduced numbers of passports being issued and consistently reduced numbers of foals being born. Objectives and activities Objectives and aims The Cleveland Bay Horse Society regulates, promotes and protects the pure bred Cleveland Bay Horse. Significant activities The provision of premiums to Cleveland Bay breeders is to encourage Cleveland Bay breeding and subsidise breeding costs. Promoting the Cleveland Bay through society shows, annual magazine, newsletters and other direct promotion. Providing a framework for Cleveland Bay breeders and enthusiasts to meet, exchange views and socialise. Achievement and performance Charitable activities The Society maintained membership levels and received donations from members. Communication with members continued through an annual magazine, four editions of the Bay Window newsletter and the website as well as a new innovation Facebook. The format of the Bay Window has been considerable improved and sponsors obtained for its production and postage. Page 2

5 Cleveland Bay Horse Society of the United Kingdom Trustees annual report There was a considerable improvement in pure bred breeding numbers in 2013 compared to UK and 5 overseas fillies as well as 9 UK and 4 overseas colts were born.. Hopefully the number of foals born will continue to improve along with the economic improvement in the UK. Presently there are 40 licenced stallions in the UK and 33 overseas. The society is encouraging an increase in numbers in order to improve the genetic diversity of the breed. The collection of semen from genetically rare stallions is continuing. The support of HBLB and RBST is vital to the Society in order to enable grants to be given to UK mare and stallion owners. The emphasis in 2013 has been to try eliminate transmittable diseases by CEM testing of breeding animals. Defra has agreed to continue with the PIO status (Passport Issuing Organisation) of the CBHS which means that we can continue to issue passports. The terms that have been agreed are that all passport information must be stored electronically, including ID charts. To enable us to do this and run the office without a secretary, we have purchased new software from a company called Grassroots. Their software has been specifically developed to handle the new Defra PIO requirements and we have received a donation of 1,500 from a member towards the 1,895 + VAT cost. The office is open Tuesdays and Thursdays from 10.00am to 4.00pm. Any queries outside these hours for basic passport information from Defra and Enforcement agencies will be dealt with by the Grassroots organisation. They will, however, not have access to member information which is excluded by the Data Protection Act. We have reduced the administrative costs by 9,000 per annum as we no longer employ a secretary. This work is now covered by Council members and their Chief Officer. There will be a full saving of this amount in 2014/15. Financial review Reserves policy It is the policy of the company to maintain unrestricted funds, which are the free reserves of the charity, at a level to provide sufficient funds to cover management and administration costs. Unrestricted funds were maintained at this level throughout the year under review and the balance at the year end amounted to 58,013 ( ,276). The balance of restricted funds, which is represented by the HBLB grant, at the year end amounted to 14,275 ( ,388). The adequacy of the reserves policy is reviewed annually. Investment policy and objectives The society has the power to make any investments as council sees fit. Page 3

6 Cleveland Bay Horse Society of the United Kingdom Trustees annual report Future developments The focus remains to increase foal numbers using the HBLB grant support and to encourage colt owners to keep them entire to improve the breed. The council will involve members in the allocation of the HBLB grant to ensure maximum up take of the HBLB grant. Organisational improvements continue with council members continuing to take on administrative tasks. Organisational improvement is essential as the society can no longer fund the level of administration enjoyed in the past. Office processes and procedures will be reviewed. New software Pediweb will be introduced for pedigree management of the stud book so that members can access it online. Statement of trustees' responsibilities The trustees are responsible for preparing the Trustees' Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charity for the period. In preparing these financial statements the council are required to: - select suitable accounting policies and apply them consistently; - observe the methods and principles in the charities SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards have been followed, subject to any material disclosed and explained in the financial statements; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation. The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Section 419 (2) of the Companies Act 2006 & Section 17(5) of the 2011 Charities Act. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Small company provisions These financial statements have been prepared in accordance with the special provisions for small companies under part 15 of the Companies Act This report was approved by the Board on... and signed on its behalf by: Trustee... Trustee... Mrs S M Anderson Mrs E A Worthy Page 4

7 Independent examiner's report to the trustees on the unaudited financial statements of the Society for the year ended 31st May I report on the accounts of Cleveland Bay Horse Society of the United Kingdom (Limited by guarantee) (charity number ) which are set out on pages 6 to 16. Respective responsibilities of trustees and independent examiner The charity's trustees are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under Part 16 of the Companies Act 2006 & section 144(2) of the Charities Act 2011 (the 2011 Act), and that an independent examination is needed. It is my responsibility to: - examine the accounts under section 145 of the 2011 Act, - to follow the procedures laid down in the general directions given by the charity commission under section 145(5)(b) of the 2011 Act, and - to state whether particular matters have come to our attention. Basis of independent examiners statement My examination was carried out in accordance with general directions given by the charity commission. 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 seeking explanations from all trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a 'true and fair view' and the report is limited to those matters set out in the statement below. Independent examiners statement In the course with my examination, no matter has come to my attention; (i) which gives me reasonable cause to believe that in any material respect the requirements: - to keep proper accounting records in accordance with section 386 of the Companies Act 2006; - to prepare accounts which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities have not been met; or (ii) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.... Date... Charles Gill ACA The Barker Partnership Chartered Accountants 24 High Street Pateley Bridge Harrogate, HG3 5JU Page 5

8 Cleveland Bay Horse Society of the United Kingdom Statement of financial activities (including income and expenditure account) Year Period ended 01/12/11 - Unrestricted Restricted 31/05/14 31/05/13 Notes Funds Funds Total Total Incoming resources Incoming resources from generated funds Voluntary income 11,736 9,803 21,539 37,420 Activities for generating funds 2 20,503-20,503 20,101 Investment income Total incoming resources 32,894 9,803 42,697 58,439 Resources expended Cost of generating funds Costs of generating voluntary income 3,280-3,280 3,031 Fundraising trading: Goods sold & other costs 5 19,174 13,877 33,051 30,991 Governance costs 8,742-8,742 22,254 Total resources expended 31,196 13,877 45,073 56,276 Net (outgoing)/ incoming resources before transfers 1,698 (4,074) (2,376) 2,163 Transfers (1,961) 1, Net movement in funds in year (263) (2,113) (2,376) 2,163 Reconciliation of funds Total funds brought forward 16 58,276 16,388 74,664 72,501 Total funds carried forward 58,013 14,275 72,288 74,664 The statement of financial activities includes all gains and losses in the year. All incoming resources and resources expended derive from continuing activities. Further details are given on pages 9-16 of the financial statements. Page 6

9 Cleveland Bay Horse Society of the United Kingdom Balance sheet as at 31 May 2014 Unrestricted Restricted Total funds funds funds 31/05/14 31/05/14 31/05/14 31/05/13 Notes Fixed Assets Tangible assets 6 11,106-11,106 8,938 Current Assets Stocks 7 3,315-3,315 4,577 Debtors 8 3,256-3,256 3,146 Cash at bank and in hand 9 46,402 22,391 68,793 68,985 52,973 22,391 75,364 76,707 Creditors: due within one year 10 (6,066) (8,116) (14,182) (10,981) Net Current assets 46,907 14,275 61,182 65,726 Total Assets Less Current Liabilities 58,013 14,275 72,288 74,664 Net assets 58,013 14,275 72,288 74,664 The funds of the charity 16 Unrestricted funds 58,013 58,276 Restricted funds 14,275 16,388 Total charity funds 15 72,288 74,664 The directors' statements required by Section 475(2) and (3) are shown on the following page which forms part of this Balance Sheet. The notes on pages 9 to 15 form an integral part of these financial statements. Page 7

10 Cleveland Bay Horse Society of the United Kingdom Balance sheet (continued) Trustees' statements required by the Companies Act 2006 The charitable company is entitled to exemption from audit under section 477 of the Companies Act 2006 for the year ended 31 May The members have not required the charitable company to obtain an audit of its financial statements for the year ended 31 May 2014 in accordance with section 476 of the Companies Act The trustees acknowledge their responsibilities for: (a) (b) ensuring that the charitable company keeps accounting records that comply with sections 386 and 387 of the Companies Act 2006 and preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of the financial year and of its profit or loss for the year then ended in accordance with the requirements of Section 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. These financial statements have been prepared in accordance with the special provisions of part 15 on the Companies Act 2006 relating to small charitable companies and with the Financial Reporting Standard for Smaller Entities (effective April 2008). The financial statements were approved by the board of trustees on... and were signed on its behalf by: The financial statements were approved by the Board on... and signed on its behalf by: Trustee... Trustee... Mrs S M Anderson Mrs E A Worthy The notes on pages 9 to 15 form an integral part of these financial statements. Page 8

11 Notes to the financial statements 1. Accounting policies The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year and the proceeding year Basis of accounting The financial statements are prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008) and the Statement of Recommended Practice - Accounting & Reporting by Charities issued in March 2005 (SORP 2005) and the Companies Act Fund accounting Unrestricted funds are available at the discretion of the management committee in furtherance of the general objectives of the Charity. Restricted funds can only be used for particular restricted purposes within the objectives of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in the notes to the financial accounts Incoming resources All incoming resources are included in the statement of financial activities when the charity is legally entitled to the income and the amount can be quantified within resonable accuracy. Income from investments is included in the year in which it is receivable Resources expended Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs relating to that category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources Tangible fixed assets and depreciation Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows: Office equipment - 15% on a reducing balance basis Trophies - Nil Computer equipment % on a reducing balance basis Trophies are not depreciated and are included at a valuation based on their insured values which is considered to be similar to their market value and is a departure from the general requirement of Companies Act 2006 for all tangible assets to be depreciated. Page 9

12 Notes to the financial statements 1.6. Stock Stock is valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items Leasing commitments Rentals paid under operating leases are charged to the statement of Financial Activities on a straight line basis over the period of the lease. 2. Activities for generating funds Year Period ended 01/12/11 31/05/14 31/05/13 Stud book sales Inspection and premium income Pure and part breed fees 2,667 4,826 Japanese stud sales 8,000 - Promotion goods sold 1,743 1,379 Direct promotion income 1, British horse passport income 1,787 2, club income - 1,784 Income tax refunds Magazine sales DNA testing 1,992 1,332 Horse sales adverts Pre-fix income Show income 50 1,103 Performance award scheme Royal Mews income - 1,129 Breed conference income AGM Dinner Income 1,138 1,326 20,503 20,101 Page 10

13 Notes to the financial statements Year Period ended 01/12/11 3. Net incoming/ (outgoing) resources for the year 31/05/14 31/05/13 Net incoming resources is stated after charging / (crediting): Depreciation and other amounts written off tangible assets Other operating leases 5,640 8, Trustees' remuneration and benefits There were no trustees' remuneration or other benefits for the year ended 31st May 2014 ( Nil). Trustees' expenses of 157 were paid in the period ( ). Year Period ended 01/12/11 4. Investment income 31/05/14 31/05/13 Deposit account interest Page 11

14 Notes to the financial statements Year Period ended 01/12/11 5. Fundraising trading: Cost of goods sold & other costs 31/05/14 31/05/13 Opening stock 4,577 4,748 Purchases - 1,455 Closing stock (3,315) (4,577) Rent 5,640 8,459 Other fundraising costs 26,149 20,906 33,051 30,991 Other fundraising costs: Stallion, mare and foal premiums 8,950 5,428 Inspection, premium expenses and vetinary fees - 1,409 DNA testing 3,178 3,474 Semen expenses 1, Show and stallion show expenses 1,091 2,035 Japanese stud expenses 8,000 - Performance scheme expenses Passport expenses Prefix expenses Magazine printing expenses & advertising 2,637 3,105 Promotion and direct promotion expenses PR Consultancy fees - TSM Royal Mews trip - 1,100 Breed conference , Club expenses ,149 20,906 Page 12

15 Notes to the financial statements 6. Tangible fixed assets Office Computer equipment Trophies equipment Total Cost at 1 June ,376 8, ,683 Additions 2, ,674 At 31 May ,950 8, ,357 Depreciation At 1 June , ,745 Charge for the year At 31 May , ,251 Net book values At 31 May ,387 8, ,106 At 31 May , ,938 Year Period ended 01/12/11 7. Stocks 31/05/14 31/05/13 Closing stock of souvenirs 3,315 4,577 Page 13

16 Notes to the financial statements Year Period ended 01/12/11 8. Debtors 31/05/14 31/05/13 Trade debtors Other debtors Prepayments and accrued income 2,344 2,346 3,256 3,146 Year Period ended 01/12/11 9. Cash at bank and in hand 31/05/14 31/05/13 HSBC current account 2,452 4,047 Barclays premium account - unrestricted 35,196 36,541 Barclays premium account - restricted 22,391 20,394 HSBC savings account 7,005 8,003 Paypal account 1,749-68,793 68,985 Year Period ended 01/12/ Creditors: amounts falling due 31/05/14 31/05/13 within one year HBLB Grant - restricted 8,116 4,006 Other creditors 2,927 3,374 Accruals and deferred income 3,139 3,601 14,182 10, Company Limited by guarantee The Society has no share capital as it is limited by guarantee. Page 14

17 Notes to the financial statements 12. Taxation The Charity's activities fall within the exemptions afforded by the provisions of the Income and Corporation Taxes Act Accordingly, there is no taxation charge in these accounts. 13. Related party transactions It is a requirement of the society for all trustees to be members. As at 31 May 2014, all members had paid their subscriptions. 14. Controlling interest The company was under the control of its trustees during the period. 15. Analysis of net assets between funds Unrestricted Restricted Total funds funds funds Fund balances at 31 May 2014 as represented by: Tangible fixed assets 11,106-11,106 Current assets 52,973 22,391 75,364 Current liabilities (6,066) (8,116) (14,182) 58,013 14,275 72, Movement between funds Transfers At Incoming Outgoing between At 1 Jun 13 resources resources funds 30 May 14 Unrestricted funds 58,276 32,894 (31,196) (1,961) 58,013 Restricted funds 16,388 9,803 (13,877) 1,961 14,275 Total funds 74,664 42,697 (45,073) - 72,288 Page 15

18 Income and Expenditure Account Year Period ended 01/12/11-31/05/14 31/05/13 Incoming resources Voluntary income Subscriptions 7,839 10,397 Donations, Grants & HBLB 13,700 26,793 Friends of the Society ,539 37,420 Activities for generating funds Stud book sales Inspection & premium income Pure & part bred fees 2,667 4,826 Japanese stud sales 8,000 - Promotion goods sold 1,743 1,379 Direct promotion income 1, British horse passport income 1,787 2, club income - 1,784 Income tax refunds Magazine sales DNA testing 1,992 1,332 Horse sale adverts Pre-fix income Show income 50 1,103 Performance award scheme Royal Mews income - 1,129 Breed conference income AGM dinner income 1,138 1,326 20,503 20,101 Investment income Deposit account interest Total incoming resources 42,697 58,439 Page 16

19 Income and Expenditure Account Year Period ended 01/12/11-31/05/14 31/05/13 Resources expended Fundraising trading: Cost of goods sold and other costs Opening stock 4,577 4,748 Purchases - 1,455 Rent 5,640 8,459 Other fund raising costs 26,149 20,906 Closing stock (3,315) (4,577) 33,051 30,991 Governance costs Secretary's salary 1,598 13,995 Postage & telephone 2,224 2,075 Computer software & expenses 715 1,019 Annual meeting expenses 1,597 1,318 Printing & copying 1,048 1,540 Accountancy fees 1,560 2,100 Subscriptions Support costs 8,742 22,254 Management costs Sundries Finance costs General insurance 1,051 1,808 Bank charges Depreciation of tangible fixed assets ,460 2,944 45,073 56,276 Net income (2,376) 2,163 Page 17