Company number: 03072475 Charity Number: 1050146
The Pony Club
Report and consolidated financial statements For the year ended 31 December 2020
The Pony Club
Contents
For the year ended 31 December 2020
Reference and administrative information ...................................................................................... 2 Trustees’ annual report .................................................................................................................. 3 Independent auditor’s report ....................................................................................................... 14 Consolidated statement of financial activities (incorporating an income and expenditure account) .................................................................... 19 Balance sheets .............................................................................................................................. 20 Consolidated statement of cash flows ........................................................................................... 21 Notes to the financial statements ................................................................................................. 22
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The Pony Club
Reference and administrative information
For the year ended 31 December 2020
Company number 030702475 Country of incorporation United Kingdom Charity number 1050146 Country of registration England and Wales Registered office and operational address The Pony Club Stoneleigh Park Kenilworth Warwickshire CV8 2RW Trustees Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows:
Mr C J B Bromfield Chairman (resigned December 2020) Mr T R G Vestey Chairman (appointed January 2021) Mrs C M G Valori Vice Chairman Mr N J Howlett Treasurer (appointed February 2020) Ms J E Baynes (appointed February 2020) Mrs D Custance-Baker (appointed January 2020) Mr P W Freedman (appointed February 2020) Mr A W James Mrs E P Lowry Key management Mr Marcus Capel Chief Executive personnel Ms Heidi Lockyer Chief Operating Officer Ms Briony King Head of Finance Mrs Beryl Stringer Head of Membership and Technology Mrs Michelle Tompkinson Head of Marketing (Appointed April 2020) Bankers Barclays Bank Plc 105 The Parade, Leamington Spa, CV32 4AZ Solicitors DWF LLP One Snowhill, Birmingham, B4 6GA Auditor Sayer Vincent LLP Chartered Accountant and Statutory Auditor Invicta House, 108-114 Golden Lane, London, EC1Y 0TL
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The Pony Club
Trustees’ annual report
For the year ended 31 December 2020
The Trustees present their report and the audited financial statements for the year ended 31 December 2020.
Reference and administrative information set out on page 2 forms part of this report. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association, the requirements of a directors’ report as required under company law, and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.
Objectives and activities
The Pony Club Articles of Association define its charitable objects as being:
To promote and advance the education and understanding of the public and particularly young people, in all matters relating to the horse, its environment, exercise and well-being, its sporting and recreational use and attributes and to promote and advance the acquisition and distribution of knowledge of all matters concerning the horse (including the welfare and breeding of horses and ponies); and
To educate and assist young people through their leisure activities so as to assist in the development of their physical and mental activities to help them to maximise their potential and better enable them to grow to full maturity as individuals and full and confident members of society - in particular by the provision of instruction for young people into riding, and care of horses, ponies and other animals.
Deriving from, and consistent with these charitable objects, a strategic review carried out in 2020 defined the following Pony Club Charitable Purpose and Strategic Objectives:
Charitable Purpose
To promote and advance the education and understanding of the public and particularly children and young people, in all matters relating to horsemanship and the horse.
To encourage the development of sportsmanship, unlocking potential by building resilience, confidence, teamwork and leadership skills.
To support and develop the volunteering network to strengthen The Pony Club community and sustain life-long engagement with equestrianism.
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The Pony Club
Trustees’ annual report
For the year ended 31 December 2020
Strategic Objectives
Membership
To grow membership by 10% by 2025
To demonstrate the social, sporting and leadership impact of The Pony Club
To contribute to British Equestrian’s initiative to improve diversity within equestrian sport.
To develop global opportunities for members, coaches and volunteers within The Pony Club International Alliance, the Euro Pony Club and our overseas Branches and Centres
Charity
To raise the profile of The Pony Club and emphasise its charitable status.
To be the leading provider of horsemanship education and training for children and young people in the UK.
To communicate The Pony Club’s contribution to society in order to build visibility, trust and respect. To teach children and young people the skills they need for a horse or pony in their care to thrive. To ensure responsible horse ownership and management is at the forefront of our riding activities and to embed the mental, physical and emotional requirements of the horse in all training activity. To be inclusive and accessible to children and young people from all walks of life.
Volunteers
To ensure that The Pony Club is the organisation of choice for people wishing to support children and young people in an equestrian setting.
To enhance the reputation of The Pony Club as the most trusted and rewarding volunteer organisation in equestrianism in the UK.
To promote the concept of One Pony Club across our whole community.
Sustainability
To maintain a sustainable financial framework with appropriate infrastructure.
To attract and retain sufficient capable and motivated people (staff and volunteers) to meet the needs of our organisation.
To operate within an appropriate legal and regulatory framework.
To nourish The Pony Club Governance structure, providing informed, transparent decisions and clear communications.
Membership
Membership of The Pony Club is open to anyone aged 25 and under. The Pony Club has 325 Branches throughout the United Kingdom and affiliated Pony Clubs in many overseas countries. The Pony Club relies on Membership income and entry fees for events in order to cover its operating costs. In setting the level of fees and charges, the Trustees give careful consideration to the accessibility and diversity of The Pony Club.
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The Pony Club
Trustees’ annual report
For the year ended 31 December 2020
The Pony Club operates a Centre Membership Scheme, open to those who do not own their own ponies. The Centre Membership Scheme has suffered a downturn during the Covid-19 restrictions and the number of participating riding schools has fallen from 450 to 420 in the last 12 months.
The Pony Club aims to support and promote fun, friendship, horsemanship and sport.
Members’ Activities
The primary function of every Branch and Centre is to teach Members to ride and care for their horse or pony, using qualified and approved coaches who teach at rallies and camps.
The Pony Club runs a formal efficiency test scheme from E through to A. It also awards a set of achievement badges which recognise and reward the acquisition of knowledge relating to individual aspects of pony care, first aid, farming, and various sports, thereby helping Members learn and develop. The Pony Club monitors tests taken and badges awarded as measures of its success as a training organisation.
Competitions
Branches and Centres also organise competitions where Members can compete as individuals or in teams against other branches or centres. The ability to deal with success and failure both individually and within a team is central to the ethos of The Pony Club and is a fundamental life skill. Local and Regional competitions act as qualifying rounds for annual, national and/or international championships.
Coaches
All coaches are accredited and must partake in training, an approval process and continuing professional development. A list of approved coaches is maintained by The Pony Club and all branches and centres. The Pony Club encourages Members to aspire to become coaches and has a well-established coaching development programme. This benefits The Pony Club and the Members themselves, providing further skills and the opportunity to generate income as an instructor. The Pony Club is also able to share accredited coaches from other member bodies of British Equestrian. The Pony Club monitors participation in the coaching development programme as another measure of its success as a training organisation.
Volunteers
The Pony Club remains hugely indebted to the unpaid officials who run the affairs of its 325 Branches and to the many thousands of unpaid volunteers who assist in the huge variety of activities staged by branches. Volunteers are also the main workforce for the Pony Club Championships. The Pony Club recognises volunteers who serve the Pony Club for 20 years or more through its Cubitt Award Programme.
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The Pony Club
Trustees’ annual report
For the year ended 31 December 2020
Membership
As at 31 December 2020, The Pony Club had 21,523 (2019: 23,087) Branch members and 6,912 (2019: 13,104) Centre members. The Pony Club introduced rolling annual membership in place of fixed dated annual memberships in 2020. Branch, and in particular Centre, membership numbers were adversely affected by the Covid-19 crisis and the consequent lack of activity. As at 28[th] June 2021, Branch membership numbers stood at 21,165 whilst Centre memberships totalled 7,853. In accordance with the strategic objectives defined in 2020, the Trustees and Senior Leadership team seek to halt the decline and initiate growth in membership numbers.
Members’ Activities
Tests
In 2020 circa 4,600 members passed a test, a significant fall from previous levels of circa 8,000 tests, entirely related to Covid-19 restrictions. No test is compulsory and all members have the support they need to achieve success. Online learning material continues to be developed so members can study in their own time as well as joining branch, centre and regional learning. The Pony Club series of achievement badges have been reviewed and bolstered in the early months of 2021.
Competitions
The competition culture amongst branches and centres is on the road to recovery after the adverse impacts of the Covid-19 restrictions in 2020 and early 2021. The Pony Club competition schedule seeks to impart to members the skills required for competitive careers in show jumping, eventing, dressage, mounted games, tetrathlon, polocrosse, polo, pony racing and endurance. Plans are well advanced to resume competitive activity with vigour in the second half of 2021, with qualifier competitions underway, which will lead to the Pony Club Championships in August, which will be held for the first time at Offchurch Bury near Leamington Spa.
Coaches
All Pony Club coaches must have a first aid certificate, be DBS cleared, attend a safeguarding course and commit to their continuing professional development. Each branch monitors its coaches to ensure they are up to date and The Pony Club monitors the register of coaches to maintain the highest standards.
Many Pony Club members go on to have careers in the equestrian sphere and the grounding they gain in The Pony Club is well respected. Hard work, team work, horsemanship, sportsmanship and high standards of riding and teaching set Pony Club members apart. At a time when the standard required by employers is increasingly high, Pony Club members are well placed for success. Current and past members are professional riders, veterinary surgeons and nurses, horse dentists,
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The Pony Club
Trustees’ annual report
For the year ended 31 December 2020
farriers, grooms and work in diverse roles in the racing industry. The skills learned in The Pony Club are also transferable to careers outside the equestrian world.
Volunteers
The spectrum of Pony Club members, parents, coaches, centre owners and volunteers is multigenerational and family based, often engaging several generations of the same family at one event. The culture of volunteering remains extraordinarily strong and the sense of belonging to and ownership of The Pony Club pervades all components of this spectrum.
The Pony Club seeks to encourage young people to volunteer in the equestrian sector and to facilitate the attainment of Duke of Edinburgh Awards through Pony Club participation. To this end, a growing number of members participate in YELA (Young Equestrian Leader Award).
Beneficiaries of our services
The main beneficiaries of The Pony Club are the Members who continue to develop as riders and learn about the care and welfare of horses and ponies.
Developing rounded, well-educated Members also benefits the whole equestrian sector by providing knowledgeable candidates for careers as riders, grooms, veterinary surgeons and nurses, horse dentists, farriers and in the horse racing industry. It is notable that a high proportion of those shortlisted to represent Great Britain in equestrian sports in the 2021 Tokyo Olympics are ex-Pony Club members. The skills of teamwork, sportsmanship, horsemanship, kindness, resilience, dedication and acting independently are all of value regardless of the chosen profession.
Financial review
The consolidated financial statements including The Pony Club and its subsidiary trading company (The Pony Club Trading Ltd) for the year ended 31 December 2020 are presented. The financial statements comply with all statutory requirements and the requirements of The Pony Club’s Memorandum and Articles of Association.
The Pony Club recorded a surplus for the year of £101k (2019 £30k). Income from subscriptions fell to £1,853k (2019 £2,371k), training to £3,227k (2019 £5,989k) and competitions to £980k (2019 £3,118k). Total income fell to £6,784k (2019 £12,824k), roughly half the level of 2019 income. The paralysis introduced by Covid-19 restrictions, which prohibited most normal Pony Club activity for many months, is almost single-handedly responsible for these declines in income. Expenditure on training fell to £4,868k (2019 £8,320k) and on competitions to £1,478k (2019 £3,726K). Total expenditure fell to £6,683k (2019 £12,794k). Careful cost control means that despite these dramatic upheavals an acceptable surplus for the year has been achieved.
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The Pony Club
Trustees’ annual report
For the year ended 31 December 2020
Work continued on our new database management system throughout 2020, which went live for Centre memberships and pilot Branches in early 2020 and across all Branches by October 2020. A further £61k was spent on developing the database system during the year. The system was amortised and in addition an impairment review of the database system during the year was undertaken and an impairment of £108k was made in the accounts. The database management system therefore remains as an intangible asset with a capitalised value of £262k.
The lack of activity enforced by the government’s Covid-19 restrictions impacted adversely on sales through The Pony Club joint venture with Harry Hall, which supplies Pony Club branded goods to members, branches and centres. Anticipated profits from trading were diminished as a result of these restrictions.
The Pony Club can only function because of the generous support given by unpaid District Commissioners, Treasurers, Area Representatives and other volunteers who run the 325 branches and 19 areas. In accordance with the provisions of the Memorandum and Articles of Association of The Pony Club, no remuneration is paid to any of the Trustees. Volunteers receive reimbursement of reasonable expenses.
A large proportion of The Pony Club’s net assets are held by Branches and are used by them for the benefit of Members. Branch funds have been treated as designated funds in the Balance Sheet. All assets are available to fulfil the obligations of The Pony Club in the future. Movements in tangible fixed assets are detailed in note 13.
Principal risks and uncertainties
The Trustees consider the following to be the principal risks and uncertainties facing The Pony Club and have taken the following steps to address them:
The Covid-19 virus
The virus had an enormous impact on the activities of The Pony Club in 2020. With effect from the middle of March all outdoor training ceased and it was not possible to hold any of the traditional Pony Club events over the summer months, although some training and small competitive events were successfully staged in the autumn. However, a steady stream of virtual activity at branch level meant that learning and training could continue remotely throughout the year. 2021 has featured a gradual resumption of rallies and other training and competitive activity and it is hoped that a return to normal levels of activity is not far away. The prospect of government restrictions impacting in a materially adverse manner on membership numbers was a legitimate fear, which had the potential to dramatically affect subscription income. Cost control has been paramount in order to prepare for such an eventuality, but in practice the worst-case projections for declines in membership have thankfully not materialised.
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The Pony Club
Trustees’ annual report
For the year ended 31 December 2020
Loss of Membership
The gradual, long-term decline in membership translates into a reduction in income which has provided challenges affecting the continued operation of The Pony Club for many years. Cost savings have been required in recent years in response to this decline. The Trustees and the Senior Leadership team are pursuing a strategy to attract new and to retain existing members. Simultaneously The Pony Club is finding ways to ensure that historically loss-making central training, competitive and educational activities operate at break even.
Loss of volunteers and associated knowledge, experience and skills.
The Pony Club is heavily reliant on volunteers. It recognises and supports its volunteers both at local, regional and national level. However, committing time to Pony Club volunteering becomes harder for many each year, so the use of technology to replace volunteers is increasingly in evidence. The adoption of technology has been accelerated by the Covid-19 experience.
Adverse publicity and reputational damage
There is a risk that the activities of employees, volunteers, members and members’ families could potentially bring the organisation adverse publicity. This risk is minimised by training for volunteers, staff and members and by promoting readily accessible codes of conduct. Potentially damaging behaviour is dealt with promptly with support from senior volunteers and employees where necessary.
Reliance on Information Technology
The reliance on information technology presents an inevitable risk to The Pony Club. Significant investment in a new membership database, maintaining cyber security and complying with GDPR regulations continued throughout 2020 and will be an on-going feature of and cost to the business in future years.
Financial
The Pony Club is exposed to financial risks as a result of its day to day activities and could potentially face financial losses from events, legal action or further declines in membership. To manage these risks The Pony Club holds a number of insurance policies and monitors its reserves carefully. The Pony Club Trustees consider that central reserves should ideally be further strengthened in coming years in order to ensure robust financial health to cope with as many foreseeable and un-foreseeable risks, costs or losses as possible.
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The Pony Club
Trustees’ annual report
For the year ended 31 December 2020
Reserves Policy and going concern
At 31st December 2020, the unrestricted funds of the Charity totalled £7,362k (2019 £7,281k). Of this sum £6,726k (2019 £6,767k) represents funds held by Branches and Areas leaving £632k held in central reserves (2019 £498k) and £4k (2019 16k) held by The Pony Club Trading Limited.
The Pony Club Office needs to fund working capital and in order to be able to address unforeseen risks and circumstances the Trustees believe that the unrestricted reserves retained centrally should equate to six month’s expenditure. Office expenditure during the year amounted to £1,672k so total central reserves were equivalent to 4.5 months expenditure (2019 2.5 months). The Trustees acknowledge that in 2020 this remains lower than defined in the reserves policy, and they will seek to address this by continuing to allocate surplus funds to central reserves in future years.
The Trustees have reviewed the risks identified and a 24 month rolling cash forecast and have concluded that it is appropriate to treat The Pony Club as a going concern.
Plans for the future
The Pony Club membership has witnessed a steady decline in recent years. Our primary ambition is to halt that decline and initiate growth in the membership of The Pony Club without losing the core focus of what we do and why we do it. Membership growth will be dependent on the retention of existing members and recruitment of new members. The Strategy for 2020 – 2025 with the four defined pillars of Members, Charity, Volunteers and Sustainability is the framework within which The Pony Club will operate for the next five years.
We are committed to securing the future of The Pony Club and work is already under way to deliver against our commitments. As the environment in which we operate continues to be challenging, the principles contained in the strategy will ensure that The Pony Club continues to be an efficient, trusted and relevant organisation focused on supporting children and young people in the equestrian world.
The Pony Club remains a vibrant organisation at branch level and many branches provide outstanding training and social opportunities. The skills acquired by young people at Pony Club rallies, camps and training as well as in competitive situations equip members for life beyond Pony Club.
Structure, governance and management
The Pony Club is a charitable company limited by guarantee, incorporated in England and Wales on 26 June 1995 and registered as a charity on 1 January 1997.
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The Pony Club
Trustees’ annual report
For the year ended 31 December 2020
The company is established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association.
All Trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 9 to the accounts.
The Pony Club Trading Limited was incorporated in England and Wales on 16 December 1996, as a wholly owned subsidiary of The Pony Club. The results of that company are consolidated within these financial statements.
Structure
For the purpose of administration, the United Kingdom is divided into 19 Areas and local Branches are grouped into Areas. The District Commissioners in each Area elect a voluntary Area Representative to co-ordinate and assist the activities of these Branches.
The Centre Membership Scheme began in 1998, designed for children who do not have their own ponies. It operates in conjunction with established riding centres, which have been approved by The Pony Club to participate in the scheme. They provide instruction and the additional benefits of Membership to young people who do not have their own pony.
Governance
The Board of Trustees is the ultimate authority of The Pony Club. Reporting to the Board are the Management Committee and the Chief Executive.
The Management Committee is responsible for the full range of equestrian activities, including Branch and Centre Membership, tack, dress, tests and competitions. The Trustees delegate their functions with regard to the equestrian activities of The Pony Club to committees. These committees are Training, Health & Safety, Centre Membership, Eventing, Show Jumping, Dressage, Mounted Games, Tetrathlon, Polo, Polocrosse, Endurance and Pony Racing. Each Committee generally appoints two Area Representatives to be committee members.
The Chief Executive is an employee of The Pony Club, responsible for administering the activities of The Pony Club and the Office within the policies and procedures established by the Board of Trustees and the Management Committee, and in accordance with statutory requirements and the approved budget.
Third Party Indemnity Insurance is in place in respect of the Trustees (as directors of the company).
Appointment of Trustees
Trustees of the charity are also company directors as a matter of company law.
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The Pony Club
Trustees’ annual report
For the year ended 31 December 2020
In accordance with the Articles of Association of The Pony Club, the Board of Trustees is responsible for the appointment of Trustees. Any Trustee who is appointed by the Board of Trustees will hold office until the next AGM or EGM, at which the Members of The Pony Club determine whether to re-appoint them as Trustees for a three-year term.
Trustees are appointed in accordance with the Articles of Association of The Pony Club. Two Trustees are appointed by the Area Representatives. Other Trustees are appointed by the Board of Trustees who also nominate the Treasurer of The Pony Club and a Trustee to represent Centre members. Trustees are eligible for reappointment, subject to a maximum term of nine years.
When there are vacancies for Trustees, these vacancies are advertised and applications are invited. The Trustees then review the applications and appoint new Trustees in line with the Articles of Association.
Trustee Induction and training
New Trustees attend a training day to brief them on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the committee and decision-making processes, the strategic plan, and the recent financial performance of the charity. During the induction day they meet key employees.
Related parties and relationships with other organisations
The Pony Club has a wholly owned subsidiary undertaking, The Pony Club Trading Limited.
Remuneration policy for key management personnel
Remuneration of key management personnel is set by the Board of Trustees.
Statement of responsibilities of the Trustees
The Trustees (who are also directors of The Pony Club for the purposes of company law) are responsible for preparing the Trustees’ Annual Report including the strategic report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (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 group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company or group for that period. In preparing these financial statements, the Trustees are required to:
- Select suitable accounting policies and then apply them consistently
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The Pony Club
Trustees’ annual report
For the year ended 31 December 2020
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Observe the methods and principles in the Charities SORP
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Make judgements and estimates that are reasonable and prudent
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State whether applicable UK Accounting Standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements
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Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the Trustees are aware:
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There is no relevant audit information of which the charitable company’s auditor is unaware
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● The Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information
The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up.
The Trustees are Members of the charity but this entitles them only to voting rights. The Trustees have no beneficial interest in the charity.
Auditor
Sayer Vincent LLP was re-appointed as the charitable company's auditor during the year and has expressed its willingness to continue in that capacity.
The Trustees’ annual report which includes the strategic report was approved by the Trustees on 22 July 2021 signed on their behalf by
T R G Vestey Chairman
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Independent auditor’s report
to the Members of
The Pony Club
Opinion
We have audited the financial statements of The Pony Club (the ‘parent charitable company’) and its subsidiary (the ‘group’) for the year ended 31 December 2020 which comprise the consolidated statement of financial activities, the group and parent charitable company balance sheets, the consolidated statement of cash flows and the notes to the financial statements, 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, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
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Give a true and fair view of the state of the group’s and of the parent charitable company’s affairs as at 31 December 2020 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended
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Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice
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Have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the group financial statements section of our report. We are independent of the group and parent charitable company 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 Pony Club’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.
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Independent auditor’s report
to the Members of
The Pony Club
Other Information
The other information comprises the information included in the trustees’ annual report, including the strategic report, other than the group financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the group 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the group financial statements or our knowledge obtained in the course of 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 group 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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The information given in the trustees’ annual report, including the strategic report, for the financial year for which the financial statements are prepared is consistent with the financial statements
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The trustees’ annual report, including the strategic report, has been prepared in accordance with applicable legal requirements
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report, including the strategic report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and Charities Act 2011 requires us to report to you if, in our opinion:
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Adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
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The parent charitable company financial statements are not in agreement with the accounting records and returns; or
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Certain disclosures of trustees’ remuneration specified by law are not made; or
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We have not received all the information and explanations we require for our audit.
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Independent auditor’s report
to the Members of
The Pony Club
Responsibilities of trustees
As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the parent charitable company for the purposes of company law) 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 group’s and the parent charitable company’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 group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
We have been appointed auditor under the Companies Act 2006 and section 151 of the Charites Act 2011 and report in accordance with those Acts.
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 an auditor’s report 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 (UK) 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. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.
Capability of the audit in detecting irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
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We enquired of management, which included obtaining and reviewing supporting documentation, concerning the group’s policies and procedures relating to:
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Identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance;
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Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud;
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Independent auditor’s report
to the Members of
The Pony Club
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The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
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We inspected the minutes of meetings of those charged with governance.
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We obtained an understanding of the legal and regulatory framework that the group operates in, focusing on those laws and regulations that had a material effect on the financial statements or that had a fundamental effect on the operations of the group from our professional and sector experience.
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We communicated applicable laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit.
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We reviewed any reports made to regulators.
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We reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations.
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We performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
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In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
17
Independent auditor’s report
to the Members of
The Pony Club
Use of our report
This report is made solely to the charitable company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor’s 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 charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Fleur Holden (Senior statutory auditor)
19 August 2021
for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL
Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006
18
The Pony Club
Consolidated statement of financial activities (incorporating an income and expenditure account)
For the year ended 31 December 2020
| Restricted £ - - - - - - 93,930 |
2020 Total £ 37,240 1,853,281 3,227,613 980,257 469,744 6,334 209,564 |
Unrestricted £ 14,792 2,371,335 5,988,745 3,117,835 1,020,156 12,507 247,778 |
Restricted £ - - - - - 10 50,774 |
2019 Total £ 14,792 2,371,335 5,988,745 3,117,835 1,020,156 12,517 298,552 |
|
|---|---|---|---|---|---|
| 6,690,103 | 93,930 | 6,784,033 | 12,773,148 | 50,784 | 12,823,932 |
| 336,909 4,868,073 1,478,135 |
- - - |
336,909 4,868,073 1,478,135 |
748,012 8,278,617 3,718,842 |
- 41,171 6,943 |
748,012 8,319,788 3,725,785 |
| 6,683,117 | - | 6,683,117 | 12,745,471 | 48,114 | 12,793,585 |
| 6,986 73,452 |
93,930 (73,452) |
100,916 - |
27,677 - |
2,670 - |
30,347 - |
| 80,438 7,281,122 |
20,478 8,706 |
100,916 7,289,828 |
27,677 7,253,445 |
2,670 6,036 |
30,347 7,259,481 |
All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 24a to the financial statements.
19
The Pony Club
Balance sheets
| Balance sheets | Balance sheets | Balance sheets | ||
|---|---|---|---|---|
| As at 31 December 2020 | Company no. 03072475 | |||
| 2020 2019 Note £ £ Fixed assets: 13 317,271 397,096 14 1,179,157 1,255,478 15 - - 1,496,428 1,652,574 Current assets: 17 160,984 213,697 18 509,063 424,693 19 445,753 549,855 20 5,848,983 5,203,128 6,964,782 6,391,373 Liabilities: 21 1,070,467 754,119 5,894,316 5,637,254 7,390,744 7,289,828 24a 29,184 8,706 6,725,925 6,767,148 3,834 15,833 631,801 498,141 Total unrestricted funds 7,361,560 7,281,122 7,390,744 7,289,828 Total funds Investment in subsidiary undertaking Bank current accounts and cash in hand Bank and building society deposits and investments Tangible assets The group Intangible assets Creditors: amounts falling due within one year Net current assets Total net assets Restricted income funds Unrestricted income funds: General funds Non-charitable trading funds Designated funds Stock Debtors Funds: |
2020 2019 £ £ 317,271 397,096 1,179,157 1,255,478 2 2 The charity |
|||
| 1,496,428 160,984 509,063 445,753 5,848,983 |
1,652,574 213,697 424,693 549,855 5,203,128 |
1,496,430 160,984 574,965 445,753 5,775,984 |
1,652,576 164,609 468,011 549,855 5,186,927 |
|
| 6,964,782 1,070,467 |
6,391,373 754,119 |
6,957,686 1,067,206 |
6,369,402 747,983 |
|
| 5,894,316 | 5,637,254 | 5,890,480 | 5,621,419 | |
| 7,390,744 | 7,289,828 | 7,386,910 | 7,273,995 | |
| 29,184 6,725,925 3,834 631,801 |
8,706 6,767,148 15,833 498,141 |
29,184 6,725,925 - 631,801 |
8,706 6,767,148 - 498,141 |
|
| 7,361,560 | 7,281,122 | 7,357,726 | 7,265,289 | |
| 7,390,744 | 7,289,828 | 7,386,910 | 7,273,995 |
Approved by the trustees on 22 July 2021 and signed on their behalf by
T R G Vestey Chariman
20
The Pony Club
Consolidated statement of cash flows
For the year ended 31 December 2020
| For the year ended 31 December 2020 | ||||
|---|---|---|---|---|
| Net income for the reporting period (as per the statement of financial activities) Depreciation charges Loss on disposal Amortisation Impairment Investment income Decrease / (increase) in stock (Increase)/decrease in debtors Increase / (decrease) in creditors Net cash provided by operating activities Analysis of cash and cash equivalents -0.640032146 Bank and building society deposits and investments Cash at bank and in hand Total cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year Net cash (used in) financing activities Change in cash and cash equivalents in the year (Repayments) of borrowing Cash flows from operating activities Cash flows from financing activities: Net cash used in investing activities Cash flows from investing activities: Interest from investments Purchase of Intangible assets Purchase of fixed assets |
£ £ 100,916 270,643 1,014 33,138 108,000 (6,334) 52,713 (84,370) 317,333 793,052 6,334 (195,335) (61,313) (250,314) (986) (986) 541,752 5,752,983 6,294,735 At 1 January 2020 Cash flows £ £ 549,855 (104,102) 5,203,128 645,855 2020 |
£ £ 30,347 336,302 55,146 (12,517) (6,268) 127,076 (148,469) 381,617 12,517 (327,210) (379,921) (694,614) (286) (286) (313,283) 6,066,266 5,752,983 Other changes At 31 December 2020 £ £ - 445,753 - 5,848,983 2019 |
||
| 793,052 (250,314) (986) |
381,617 (694,614) (286) |
|||
| (986) | (286) | |||
| At 1 January 2020 £ 549,855 5,203,128 |
Other changes £ - - |
|||
| 541,752 5,752,983 |
(313,283) 6,066,266 |
|||
| 6,294,735 | 5,752,983 | |||
Cash flows £ (104,102) 645,855 |
At 31 December 2020 £ 445,753 5,848,983 |
|||
| 5,752,983 | 541,753 | - | 6,294,735 |
21
The Pony Club
Notes to the financial statements
For the year ended 31 December 2020
1 Accounting policies
a) Statutory information
The Pony Club is a charitable company limited by guarantee and is incorporated in England and Wales. The registered office address and principal place of business is Stoneleigh Park, Kenilworth, Warwickshire, CV8 2RW.
b) Basis of preparation
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006/Charities Act 2011.
These financial statements consolidate the results of the charity and its wholly-owned subsidiary The Pony Club Trading Limited on a line by line basis. Transactions and balances between the charity and its subsidiary have been eliminated from the consolidated financial statements. Balances between the two entities are disclosed in the notes of the charity's balance sheet. A separate statement of financial activities, or income and expenditure account, for the charity itself is not presented because the charity has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006.
Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.
In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below. The accounts are prepared as full values however are presented to the nearest £1. This may cause small discrepancies in the financial statements
c) Public benefit entity
The charity meets the definition of a public benefit entity under FRS 102.
d) Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. Despite the lower than desired reserves held centrally, sufficient reserves are held across the organisation and the trustees have a reviewed a rolling 24 months cash flow forecast in order to make this judgement which show no significant risk to the going concern position.
The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.
e) Income
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.
Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.
Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.
22
The Pony Club
Notes to the financial statements
For the year ended 31 December 2020
- 1 Accounting policies (continued)
f) Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.
g) Fund accounting
- Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.
Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes. Designated funds are unrestricted funds earmarked by the trustees for particular purposes.
h) Expenditure and irrecoverable VAT
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
-
Costs of raising funds relate to the costs incurred by the charity in inducing third parties to make voluntary contributions to it, as well as the cost of any activities with a fundraising purpose
-
Expenditure on charitable activities includes the costs of training, competition and supporting activities undertaken to further the purposes of the charity and their associated support costs
-
Other expenditure represents those items not falling into any other heading
Irrecoverable VAT is charged as a cost against the activity based upon their proportional incomes.
i) Allocation of support costs
Expenditure is allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which is an estimate, based on revenue.
Where information about the aims, objectives and projects of the charity is provided to potential beneficiaries, the costs associated with this publicity are allocated to charitable expenditure.
Where such information about the aims, objectives and projects of the charity is also provided to potential donors, activity costs are apportioned between fundraising and charitable activities on the basis of revenue for each activity.
Raising funds 10%
Training 60%
Competitions 30%
j) Operating leases
Rental charges are charged on a straight line basis over the term of the lease.
k) Intangible assets
Items are capitalised where intangible assets generated exceed the value of £1,000. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use. Intangible assets will be amoristed over a straight line basis over 5 years.
23
The Pony Club
Notes to the financial statements
For the year ended 31 December 2020
1 Accounting policies (continued)
l) Tangible fixed assets
Items of equipment are capitalised where the purchase price exceeds £250. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use. Major components are treated as a separate asset where they have significantly different patterns of consumption of economic benefits and are depreciated separately over its useful life.
Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:
-
Freehold buildings
-
Leasehold buildings
-
Motor vehicles and caravans Fixtures and fittings Computer equipment Course equipment Improvements to leasehold property
over 50 years over the period of the lease over 4 years over 3 to 5 years over 2 years over 1 to 10 years over the life of the lease
m) Investments in subsidiaries
Investments in subsidiaries are at cost.
n) Stocks
Stocks are stated at the lower of cost and net realisable value. In general, cost is determined on a first in first out basis and includes transport and handling costs. Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for the costs of realisation. Provision is made where necessary for obsolete, slow moving and defective stocks. Donated items of stock, held for distribution or resale, are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.
o) Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
p) Short term deposits
Short term deposits includes cash balances that are invested in accounts with a maturity date of between 3 and 12 months.
q) Cash at bank and in hand
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
r) Creditors and provisions
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
s) Financial instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
t) Taxation
The Pony Club is a registered charity and as such is exempt from income and corporation taxes under the provisions of the Income and Corporation Taxes Act 1998.
24
The Pony Club
Notes to the financial statements
For the year ended 31 December 2020
-
1 Accounting policies (continued)
-
u) Defined pension contribution scheme
-
Pension contributions are charged to income as they become payable in accordance with the rules of the scheme. Differences between contributions payable in the year and contributions actually paid are shown as either prepayments or accruals in the balance sheet.
-
2 Income from donations and legacies
| Government Grant - Coronovius Job Retention Scheme Donations income |
Unrestricted £ 2,609 34,632 |
£ - - Restricted |
2020 Total £ 2,609 34,632 |
Unrestricted £ 14,792 - |
£ - - Restricted |
2019 Restated Total £ 14,792 - |
|---|---|---|---|---|---|---|
| 37,240 | - | 37,240 | 14,792 | - | 14,792 |
2019 figures have been restated as branch fundraising income (note 4) having previously been classified as branch donations income. In the 2020 accounts they have been moved to branch fundraising income to better reflect the income profile. This adjustment is a reclassification and therefore had no impact of the prior year's net movement in funds.
3 Income from charitable activities
| Sub-total for Subscriptions Sub-total for Training Sub-total for Competitions Branches training income Branch subscriptions Branch gift aid Centre subscriptions Centre gift aid Total income from charitable activities Areas training income Areas competition income Centre affiliation fees Central training income Overseas Branch affiliation fees Central competition income Branches competition income |
Unrestricted £ 1,298,662 203,555 315,178 31,449 4,438 - |
£ - - - - - - Restricted |
2020 Total £ 1,298,662 203,555 315,178 31,449 4,438 - |
Unrestricted £ 1,639,451 285,705 374,205 41,766 28,798 1,410 |
£ - - - - - - Restricted |
2019 Total £ 1,639,451 285,705 374,205 41,766 28,798 1,410 |
|---|---|---|---|---|---|---|
| 1,853,281 41,394 3,048,379 137,840 |
- - - - |
1,853,281 41,394 3,048,379 137,840 |
2,371,335 98,335 5,754,301 136,109 |
- - - - |
2,371,335 98,335 5,754,301 136,109 |
|
| 3,227,613 15,395 902,961 61,901 |
- - - - |
3,227,613 15,395 902,961 61,901 |
5,988,745 223,771 2,623,388 270,676 |
- - - - |
5,988,745 223,771 2,623,388 270,676 |
|
| 980,257 | - |
980,257 | 3,117,835 | - | 3,117,835 | |
| 6,061,151 | - |
6,061,151 | 11,477,915 | - | 11,477,915 |
25
The Pony Club
Notes to the financial statements
For the year ended 31 December 2020
- 4 Income from other trading activities
| Central other income received Branches other income received Income from investments Branches bank interest received Other income Trading subsidiary income Branch fundraising income Central bank interest received Areas other income received |
Unrestricted £ 59,081 410,663 |
£ - - Restricted |
2020 Total £ 59,081 410,663 |
Unrestricted £ 261,219 758,937 |
£ - - Restricted |
2019 Restated Total £ 261,219 758,937 |
|---|---|---|---|---|---|---|
| 469,744 | - | 469,744 | 1,020,156 | - | 1,020,156 | |
| Unrestricted £ 1,254 5,080 |
£ - - Restricted |
2020 Total £ 1,254 5,080 |
Unrestricted £ 738 11,769 |
£ - 10 Restricted |
2019 Total £ 738 11,779 |
|
| 6,334 | - | 6,334 | 12,507 | 10 | 12,517 | |
| Unrestricted £ 30,821 81,997 2,816 |
Restricted £ 73,242 20,688 - |
2020 Total £ 104,063 102,685 2,816 |
Unrestricted £ 53,785 155,287 38,706 |
Restricted £ 41,171 9,603 - |
2019 Total £ 94,956 164,890 38,706 |
|
| 115,634 | 93,930 | 209,564 | 247,778 | 50,774 | 298,552 |
5 Income from investments
6 Other income
26
The Pony Club
Notes to the financial statements
For the year ended 31 December 2020
- 7a Analysis of expenditure (current year)
| Analysis of expenditure (current year) e year ended 31 December 2020 |
10% | 1 1 69% 21% |
1 1 69% 21% |
||||
|---|---|---|---|---|---|---|---|
| Costs directly allocated to charitable activities: Costs of camps Costs of rallies and other training events Costs of competitions Support costs directly attributable to activities: Staff costs, travel and other expenses Meeting costs Area representatives Centre membership Young Equestrians Branch costs Branch depreciation Public liability insurance Indemnity insurance Trustee expenses Legal and professional Fundraising and publicity Support costs directly attributable by usage: Staff costs, travel and other expenses Meeting costs Irrecoverable VAT Central depreciation Impairment Premises costs Office costs Accountancy and payroll Other expenses Governance costs Support costs Total expenditure 2020 Total expenditure 2019 |
Cost of raising funds £ - - - - - - - - 64,139 - - - - - 148,616 - - - - - - - - |
Charitable activities | Governance costs £ - - - - - - - - - - - 14,028 1,027 98,965 - - - - - - - - - - |
Support costs £ - - - - - - - - - - - - - - - 512,779 887 68,053 45,696 108,000 134,472 50,587 157,098 49,948 |
2020 Total £ 981,333 2,353,740 693,312 106,766 1,617 5,112 56,418 557 641,390 256,694 196,022 14,028 1,027 98,965 148,616 512,779 887 68,053 45,696 108,000 134,472 50,587 157,098 49,948 |
2019 Total £ 3,029,505 3,260,314 2,760,273 163,228 6,863 19,068 140,516 8,306 1,221,962 323,535 247,341 14,028 13,327 74,423 481,436 446,763 3,043 192,393 12,767 - 132,375 63,539 107,299 71,281 |
|
| Training £ 981,333 2,353,740 - 43,033 1,067 3,374 56,418 557 384,834 169,418 129,375 - - - - - - - - - - - - - |
Competitions £ - - 693,312 63,733 550 1,738 - - 192,417 87,276 66,647 - - - - - - - - - - - - - |
||||||
| 212,755 11,402 112,752 |
4,123,149 68,412 676,512 |
1,105,673 34,206 338,256 |
114,020 (114,020) - |
1,127,520 - (1,127,520) |
6,683,117 - - |
12,793,585 - |
|
| 336,909 | 4,868,073 | 1,478,135 | - | - | 6,683,117 | 12,793,585 | |
| 748,012 | 8,319,788 | 3,725,785 | - | - |
27
The Pony Club
Notes to the financial statements
For the year ended 31 December 2020
- 7b Analysis of expenditure (prior year)
| Costs directly allocated to charitable activities: Costs of camps Costs of rallies and other training events Costs of competitions Support costs directly attributable to activities: Staff costs, travel and other expenses Meeting costs Area representatives Centre membership Young Equestrians Branch costs Branch depreciation Public liability insurance Indemnity insurance Trustee expenses Legal and professional * Fundraising and publicity Support costs directly attributable by usage: Staff costs, travel and other expenses Meeting costs Irrecoverable VAT Central depreciation Premises costs Office costs Accountancy and payroll Other expenses Governance costs Support costs Total expenditure 2019 |
Cost of raising funds £ - - - 31,256 - - - - 122,196 - - - - - 481,436 - - - - - - - |
Charitable activities | Charitable activities | Governance costs £ - - - - - - - - - - - 14,028 13,327 74,423 - - - - - - - - - |
Support costs £ - - - - - - - - - - - - - - - 446,763 3,043 192,393 12,767 132,375 63,539 107,299 71,281 |
2019 Total £ 3,029,505 3,260,314 2,760,273 163,228 6,863 19,068 140,516 8,306 1,221,962 323,535 247,341 14,028 13,327 74,423 481,436 446,763 3,043 192,393 12,767 132,375 63,539 107,299 71,281 |
|---|---|---|---|---|---|---|
| Training £ 3,029,505 3,260,314 - 79,402 462 12,585 140,516 8,306 733,177 213,533 163,245 - - - - - - - - - - - - |
Competitions £ - - 2,760,273 52,570 6,401 6,483 - - 366,589 110,002 84,096 - - - - - - - - - - - - |
|||||
| 634,888 10,178 102,946 |
7,641,045 61,067 617,676 |
3,386,414 30,533 308,838 |
101,778 (101,778) - |
1,029,460 - (1,029,460) |
12,793,585 - - |
|
| 748,012 | 8,319,788 | 3,725,785 | - | - | 12,793,585 |
28
The Pony Club
Notes to the financial statements
For the year ended 31 December 2020
- 8 Net income / (expenditure) for the year
This is stated after charging / (crediting):
| ony Club e year ended 31 December 2020 to the financial statements Net income / (expenditure) for the year This is stated after charging / (crediting): |
||
|---|---|---|
| 2020 | 2019 | |
| £ | £ | |
| Depreciation | 270,643 | 336,302 |
| Loss on Disposal | (87,157) | (128,092) |
| Amortisation | 33,138 | - |
| Impairment | 108,000 | - |
| Operating lease rentals: | ||
| Property | 55,300 | 55,300 |
| Other | 5,315 | 5,315 |
| Auditor's remuneration (excluding VAT): | ||
| Audit | 19,400 | 19,000 |
| Under-provision in respect of prior year | - | 4,605 |
| Other services | 850 | 4,562 |
- 9 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel
Staff costs were as follows:
| Staff costs were as follows: | ||
|---|---|---|
| Redundancy and termination costs (ex gratia) Salaries and wages Casual and temporary staff costs Social security costs Employer’s contribution to defined contribution pension schemes Health and life insurance costs |
2020 £ 636,459 - 60,709 32,657 32,052 19,109 |
2019 £ 528,436 4,500 48,531 31,819 115,996 17,151 |
| 780,986 | 746,433 |
Staff costs have been included under Accountancy & Payroll, £157,098 (2019 £107,299), Staff costs directly attributable to activities, £106,766 (2019 £163,228) and Staff costs directly attributable by usage £512,779 (2019 £446,763).
The following number of employees received employee benefits (excluding employer pension costs and employer's national insurance) during the year between:
| 2020 | 2019 | ||
|---|---|---|---|
| £ | £ | ||
| £70,000 | - £80,000 | 1 | - |
The total employee benefits (including employer pension contributions and employer's national insurance) of the key management personnel were £277,366 (2019: £221,845). The organisation considers key management personnel to be the Chief Executive, the Chief Operating Officer, Head of Finance, Head of Marketing and Head of Membership and Technology.
No trustee remuneration was paid to any trustees during the year. Trustees' expenses were reimbursed to 2 (2019: 7) trustees during the year.
Trustees' expenses represents the payment or reimbursement of costs as follows:
| 2020 | 2019 | |
|---|---|---|
| £ | £ | |
| Travel and subsistence costs | 1,215 | 13,327 |
29
The Pony Club
Notes to the financial statements
For the year ended 31 December 2020
10 Staff numbers
The average number of employees (head count based on number of staff employed) during the year was as follows:
| Competitions Other central functions Training Fundraising |
2020 No. 1.2 2.2 2.0 15.9 |
2019 No. 1.8 2.7 2.0 11.5 |
|---|---|---|
| 21.3 | 18.0 |
The full-time equivalent average number of employees during the year was as follows:
| The full-time equivalent average number of employees during the year was as follows: | ||
|---|---|---|
| Other central functions Fundraising Training Competitions |
2020 No. 1.2 2.2 2.0 14.6 |
2019 No. 1.8 2.7 2.0 10.8 |
| 20.0 | 17.3 |
11 Related party transactions
Andrew James (Trustee) – payments made to Mrs S James (wife) in relation to the supply of of rosettes £385 (2019 £650) and payments made to Mrs K Treharne (daughter) for coaching within Pony Club branches. This was an arm's length transaction and Mr James has had no involvement in the procurement of coaches. No balance is outstanding for these transactions at year end.
Tim Vestey (Trustee) – also a director of Thurlow Estate Farms Ltd (TEFL). Payments are made to TEFL for services provided and the use of facilities for Pony Club events (£5,139) (2019 £7,771) and payments are also made by TEFL (£1,462) (2019 £5,510) for the use of Pony Club cross country schooling facilities. At 31.12.20 TEFL was owed £3,000 (2019 £3,750) by the Pony Club in respect of the above transactions.
Aggregate donations from related parties were £0 (2019: £2,109).
12 Taxation
The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. The charity's trading subsidiary The Pony Club Trading Limited gift aids any available profits to the parent charity. Its charge to corporation tax in the year was:
tax in the year was: |
|||
|---|---|---|---|
| 2020 | 2019 | ||
| £ | £ | ||
| UK corporation tax at | 19% | - | - |
30
The Pony Club
Notes to the financial statements
For the year ended 31 December 2020
- 13 Intangible fixed assets
The group and charity
| The group and charity | |||
|---|---|---|---|
| Cost At the start of the year Additions in year Net book value At the end of the year At the start of the year At the end of the year Amortisation At the start of the year Charge for the year Impairment At the end of the year |
CRM £ 328,983 61,313 |
Website £ 68,113 - |
Total £ 397,096 61,313 |
| 390,296 | 68,113 | 458,409 | |
| - 19,515 108,000 |
- 13,623 - |
- 33,138 108,000 |
|
| 127,515 | 13,623 | 141,138 | |
| 262,781 | 54,490 | 317,271 | |
| 328,983 | 68,113 | 397,096 |
The new CRM system went live during 2020.
| 14 At the start of the year Additions in year The group and charity At the end of the year At the start of the year At the end of the year At the end of the year Depreciation Tangible fixed assets Net book value Cost Charge for the year Eliminated on disposal At the start of the year Disposals in year |
Freehold property £ 782,520 - - |
Fixtures and fittings £ 10,757 - - |
Computer equipment £ 1,346,100 22,731 (13,173) |
Motor vehicles £ 2,580,564 172,604 (74,998) |
Total £ 4,719,941 195,335 (88,171) |
|---|---|---|---|---|---|
| 782,520 | 10,757 | 1,355,658 | 2,678,170 | 4,827,105 | |
| 59,548 3,576 - |
1,854 636 - |
1,185,348 69,213 (12,958) |
2,217,713 197,218 (74,199) |
3,464,463 270,643 (87,157) |
|
| 63,124 | 2,490 | 1,241,602 | 2,340,732 | 3,647,948 | |
| 719,396 | 8,267 | 114,056 | 337,438 | 1,179,157 | |
| 722,972 | 8,903 | 160,753 | 362,851 | 1,255,479 |
All of the above assets are used for charitable purposes.
31
The Pony Club
Notes to the financial statements
For the year ended 31 December 2020
15 Subsidiary undertaking
The charitable company owns the whole of the issued ordinary share capital of The Pony Club Trading Limited, a company registered in England (Registered address Stonleigh Park, Kenilworth CV8 2RW - company number 3294943). The subsidiary is used for non-primary purpose trading activities. All activities have been consolidated on a line by line basis in the statement of financial activities. Available profits are gift aided to the charitable company. A summary of the results of the subsidiary is shown below:
below: |
||
|---|---|---|
| Distribution under Gift Aid to parent charity Total retained earnings carried forward The aggregate of the assets, liabilities and reserves was: Taxation on profit on ordinary activities Cost of sales Profit / (loss) on ordinary activities before taxation Gross profit/(loss) Total retained earnings brought forward Reserves (Loss) / Profit for the financial year Retained earnings Assets Liabilities Profit / (loss) for the financial year Total comprehensive income for the year Turnover Administrative expenses |
2020 £ 59,082 (66,875) |
2019 £ 261,219 (112,666) |
| (7,793) (4,206) |
148,553 (118,887) |
|
| (11,999) - |
29,666 - |
|
| (11,999) | 29,666 | |
| 15,835 (11,999) - - |
15,835 29,666 (29,666) |
|
| 3,836 | 15,835 | |
| 82,651 (78,813) |
90,731 (74,894) |
|
| 3,838 | 15,837 |
Amounts owed from/to the parent undertaking are shown in notes 18 and 21 respectfully.
16 Parent charity
The parent charity's gross income and the results for the year are disclosed as follows:
| 17 Stock Goods for resale and issue to members Gross income Result for the year |
2020 £ 160,984 The |
2019 £ 213,697 group |
2020 £ 6,726,657 110,415 |
2019 £ 12,680,011 27,779 |
|---|---|---|---|---|
| 2020 2019 £ £ 160,984 164,609 The charity |
||||
| 160,984 | 213,697 | 160,984 | 164,609 |
32
The Pony Club
Notes to the financial statements
For the year ended 31 December 2020
- 18 Debtors
| ony Club e year ended 31 December 2020 to the financial statements Debtors |
||||
|---|---|---|---|---|
| Prepayments and accrued income Trade debtors due after one year Gift Aid distributions owed by subsidiary undertaking Trade debtors due within one year Amount owed by subsidiary undertaking |
2020 £ 68,497 74,718 - - 365,848 The |
2019 £ 68,497 106,020 - - 250,176 group |
2020 2019 £ £ 68,497 68,497 65,068 93,477 75,552 39,091 - 29,666 365,848 237,280 The charity |
|
| 509,063 | 424,693 | 574,965 | 468,010 |
With the exception of the debtor described below, all of the group’s financial instruments, both assets and liabilities, are measured at amortised cost. The carrying values of these are shown above and also in notes 18, 19 and 20 below.
Trade debtors includes a long term debtor of £68,497 (2019: £68,497). This represents the ownership percentage that one of The Pony Club's branches has in a local riding school, measured at fair value. It is not anticipated to be sold within the next 12 months.
19 Bank and building society deposits and investments
| Bank and building society deposits and investments | ||||
|---|---|---|---|---|
| Central Branches |
2020 £ 4 445,749 The |
2019 £ 163,090 386,765 group |
2020 2019 £ £ 4 163,090 445,749 386,765 The charity |
|
| 445,753 | 549,855 | 445,753 | 549,855 |
20 Bank current accounts and cash in hand
| Bank current accounts and cash in hand | ||||
|---|---|---|---|---|
| Central Branches Trading subsidiary Trade creditors Creditors: amounts falling due within one year Deferred income (note 22) Taxation and social security Accrued Income Accruals Amount owed to subsidary undertaking Other loans Other creditors |
2020 £ 768,531 5,007,450 73,002 The |
2019 £ 165,377 5,021,549 16,202 group |
2020 2019 £ £ 768,531 165,377 5,007,450 5,021,549 - - The charity |
|
| 5,848,982 | 5,203,128 | 5,775,980 | 5,186,926 | |
| 2020 £ 3,624 213,967 - 11,419 34,521 200,078 22,583 584,274 The |
2019 £ 4,610 259,935 - 15,419 23,725 140,115 - 310,315 group |
2020 2019 £ £ 3,624 4,610 213,206 251,746 - 2,053 11,419 15,419 34,521 23,725 220,161 140,115 - 584,274 310,315 The charity |
||
| 1,070,467 | 754,119 | 1,067,206 | 747,983 |
- 21 Creditors: amounts falling due within one year
33
The Pony Club
Notes to the financial statements
For the year ended 31 December 2020
22 Deferred income
Deferred income comprises of income received for branch and centre membership and events taking place in the following financial year and .
financial year and . |
financial year and . |
||||
|---|---|---|---|---|---|
| 2020 £ Balance at the beginning of the year 310,315 Amount released to income in the year (310,315) Amount deferred in the year 584,274 Balance at the end of the year 584,274 General unrestricted £ 14,855 317,271 303,508 635,635 General unrestricted £ 23,834 397,096 93,044 513,974 £ £ - 73,242 8,706 20,688 Total restricted funds 8,706 93,930 6,767,148 6,284,124 15,833 59,081 General funds 498,141 346,898 7,281,122 6,690,103 7,289,828 6,784,033 The Intangible assets Tangible fixed assets Net assets at 31 December 2020 At 1 January 2020 Movements in funds (current year) Analysis of group net assets between funds (prior year) Net current assets Tangible fixed assets Sport England Designated funds: Non charitable trading Total unrestricted funds Unrestricted funds: Intangible assets Net current assets Branch / Area funds Income & gains Restricted funds: Total funds Other funds Net assets at 31 December 2019 Analysis of group net assets between funds (current year) |
2020 £ 310,315 (310,315) 584,274 The |
2019 £ 347,821 (347,821) 310,315 group |
2020 2019 £ £ 310,315 347,821 (310,315) (347,821) 584,274 310,315 The charity |
||
| 584,274 | 310,315 | 584,274 | 310,315 | ||
£ 1,164,302 - 5,561,623 Designated funds |
Restricted funds £ - - 29,184 |
Total funds £ 1,179,157 317,271 5,894,315 |
|||
| 635,635 | 6,725,925 | 29,184 | 7,390,744 | ||
| General unrestricted £ 23,834 397,096 93,044 |
£ 1,231,644 - 5,535,504 Designated funds |
Restricted funds £ - - 8,706 |
Total funds £ 1,255,478 397,096 5,637,254 |
||
| 513,974 | 6,767,148 | 8,706 | 7,289,828 | ||
| £ 73,242 20,688 Income & gains |
£ - - Expenditure & losses |
£ (73,452) - Transfers |
£ (210) 29,394 At 31 December 2020 |
||
| 8,706 | 93,930 | - | (73,452) | 29,184 | |
| 6,767,148 15,833 498,141 |
6,284,124 59,081 346,898 |
(6,325,347) (71,080) (286,689) |
- - 73,452 |
6,725,925 3,834 631,801 |
|
| 7,281,122 | 6,690,103 | (6,683,116) | 73,452 | 7,361,560 | |
| 7,289,828 | 6,784,033 | (6,683,116) | - | 7,390,744 |
23a Analysis of group net assets between funds (current year)
23b Analysis of group net assets between funds (prior year)
24a Movements in funds (current year)
The narrative to explain the purpose of each fund is given at the foot of the note below.
34
The Pony Club
Notes to the financial statements
For the year ended 31 December 2020
- 24b Movements in funds (prior year)
| ony Club e year ended 31 December 2020 to the financial statements Movements in funds (prior year) |
|||||
|---|---|---|---|---|---|
| Total restricted funds General funds Total unrestricted funds Branch / Area funds Non charitable trading Total funds Sport England Unrestricted funds: Designated funds: Restricted funds: Other funds |
£ - 6,036 At 1 January 2019 |
£ 41,171 9,613 Income & gains |
£ (41,171) (6,943) Expenditure & losses |
£ - - Transfers |
£ - 8,706 At 1 January 2020 |
| 6,036 | 50,784 | (48,114) | - | 8,706 | |
| 6,733,475 15,833 504,137 |
11,514,107 261,219 997,822 |
(11,480,434) (261,219) (1,003,818) |
- - - |
6,767,148 15,833 498,141 |
|
| 7,253,445 | 12,773,148 | (12,745,471) | - | 7,281,122 | |
| 7,259,481 | 12,823,932 | (12,793,585) | - | 7,289,828 |
Purposes of restricted funds
Due to COVID special dispensation was given by BEF to waive the requirement for the grants received from Sport England, which are channelled through the British Equestrian Federation, to be spent for specific purposes as defined in the grant offer letter.
Other funds represent funds received by individual branches or headquarters for specific projects as defined by the donor
Purposes of designated funds
Branch funds represent accumulated reserves of the individual Branches and Areas of The Pony Club. Although these reserves form part of the unrestricted funds of The Pony Club, Trustees recognise that in normal circumstances the funds will be used by the individual Branches to further the objectives of The Pony Club within their geographical area of activity. New designations represent income during the year and utilised funds represent expenditure for the year.
Non charitable trading funds are the reserves of the trading subsidiary.
25 Operating lease commitments payable as a lessee
The group's and the charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:
of the following periods: |
||||
|---|---|---|---|---|
| Less than one year One to five years |
2020 2019 £ £ 55,300 55,300 110,600 165,900 Property |
2020 2019 £ £ 5,315 5,315 - - Equipment |
||
| 165,900 | 221,200 | 5,315 | 5,315 |
26 Legal status of the charity
The charity is a company limited by guarantee and has no share capital. The members of the company are the trustees named on page 2, plus the members of the Equestrian Council and the Branch Operations Directors. The liability of each member in the event of winding up is limited to £1.
35