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2022-12-31-accounts

Company number: 03072475 Charity Number: 1050146

The Pony Club

Report and consolidated financial statements For the year ended 31 December 2022

The Pony Club

Contents

For the year ended 31 December 2022

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 2022

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 Lowlands Equestrian Centre Old Warwick Road Shrewley Warwickshire CV35 7AX

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 T R G Vestey Chairman Mrs C M G Valori Vice Chairman Mr N J Howlett Treasurer Ms J E Baynes Mrs D Custance-Baker (Resigned December 2022) Mr P W Freedman Mr A W James Mrs E P Lowry Mrs H Jackson (Appointed January 2023) Key management Mr Marcus Capel Chief Executive personnel Ms Heidi Lockyer Head of Charity Ms Sue Woolnough Head of Finance Mrs Beryl Stringer Head of Membership and Technology Ms Michelle Tomkinson Head of Marketing (appointed December 2022) 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 2022

The Trustees present their report and the audited financial statements for the year ended 31[st] December 2022.

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. This trustees’ annual report includes a directors’ report as required by company law.

Objectives and Activities

The Pony Club Charitable Purpose is:

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.

The Pony Club Strategic Objectives are:

Membership

Charity

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The Pony Club

Trustees’ annual report

For the year ended 31 December 2022

Volunteers

Sustainability

Achievements in 2022 are assessed as follows:

Membership

The growth in membership numbers achieved during in 2021 disappointingly could not be sustained in 2022, albeit membership numbers at least remained constant. By giving careful consideration to affordability when setting the level of membership and competition fees, the Trustees continue their endeavours to enhance the accessibility and diversity of The Pony Club. British Equestrian has recently released the findings of an independently commissioned report which will guide Pony Club diversity and inclusion strategies in the years to come. Jim Eyre, British Equestrian CEO summarised the report as follows: “The report made for tough reading in places but overall, there were some very positive messages around the value, benefits and latent demand of equestrian. We can now turn these into meaningful change and use as part of our wider commitment around social impact across the equestrian industry…….. We face a long journey but it’s one we must take to ensure we remain relevant and we have a vibrant equestrian community free from discrimination.”

Two appointed youth council members now join regular meetings of the Pony Club International Alliance, seeking opportunities for international collaboration. Four UK members and a chaperone participated in a memorable ten-day Thanksgiving Exchange in North and South Carolina during the year, alongside four members of the Irish Pony Club and four more drawn from the USA.

Charity

The primary aim of every Branch and Centre is to teach Members to ride and care for their horse or pony at rallies and camps.

The Pony Club runs a formal efficiency test scheme from E through to A, which has been reviewed during the course of 2022 to ensure the tests remain relevant, and at the higher levels are formally

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The Pony Club

Trustees’ annual report

For the year ended 31 December 2022

recognised coaching standards enabling test holders to enter the world of work and earn a living by teaching children to ride.

The Pony Club also awards achievement badges which recognise and reward the acquisition of knowledge relating to individual aspects of pony care, first aid, farming, the natural world and various equestrian 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. In 2022 circa 7,653 (2021: c4,600) members passed one or more efficiency tests, while 14,289 (2021:12,822) achievement badges were awarded. No test is compulsory. Online learning material continues to be developed so members can study in their own time as well as join Branch, Centre and regional learning. The Training Committee, the Health & Safety, Safeguarding and Horse Welfare Advisory Committee and the Rules and Compliance Committee continue to ensure training materials reflect the latest developments in human and horse well-being and welfare.

Members can compete as individuals or in teams in competitions against other branches or centres. The ability to deal with success and failure both individually and as a team member 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. The Pony Club Championships were successfully staged for the second year at Offchurch Bury near Leamington Spa, attracting some 3000 competitors over the ten days of competition. The Pony Club competition schedule seeks to impart to members the skills required for competitive careers in the nine competitive sports supported by The Pony Club, namely Show Jumping, Eventing, Dressage, Mounted Games, Tetrathlon, Polocrosse, Polo, Pony Racing and Endurance.

All coaches are accredited and must partake in training, an approval process and continuing professional development. The Pony Club encourages Members to aspire to become coaches and has a well-established coaching development programme. This virtuous circle benefits both The Pony Club and its Members, providing further skills and the opportunity to generate income as an instructor. Many Members graduate to 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. Current and past members are professional riders, veterinary surgeons and nurses, horse dentists, 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 Pony Club remains hugely indebted to the unpaid officials who run the affairs of its Branches and to the many thousands of volunteers who assist in activities staged by branches. Volunteers are also the mainstay of the Pony Club Championships. The Pony Club recognises volunteers who serve the Pony Club for 20 years or more through its Cubitt Award Programme and exceptional service is recognised through the recently introduced Cherry Awards, named in memory of past Chairman Cherry Mitchell. It also seeks to encourage young people to volunteer in the equestrian sector and to facilitate the attainment of Duke of Edinburgh Awards through Pony Club

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The Pony Club

Trustees’ annual report

For the year ended 31 December 2022

participation. To this end, a growing number of members participate in YELA (Young Equestrian Leader Award), 2022: 399 (2021: 303).

The spectrum of Pony Club members, parents, coaches, centre proprietors and volunteers is multi-generational and family based, often engaging several generations of the same family in one place or at one event. The culture of volunteering remains extraordinarily strong and the sense of belonging to and ownership of The Pony Club pervades all parts of this spectrum.

The governance of The Pony Club and its volunteering network has been enhanced by the appointment of two staff members who schedule all volunteer committee meetings, record topics debated and decisions made and communicate meeting minutes to the wide network of volunteers engaged in Pony Club activities. Two more staff now specifically engage with volunteer recruitment, induction, training and awards, which is again providing dividends. The improved understanding of defined strategic objectives by staff and volunteers alike, coupled with the effective deployment of staff to support volunteers and volunteering is enhancing the sense of working towards a common cause, whether as a volunteer or as a paid member of staff.

Sustainability

The Pony Club again delivered a strong financial performance during 2022, which has enabled us to rebuild central reserves to levels which will provide an adequate financial buffer should disease outbreak or pandemic ever disrupt our activities again, thereby imparting confidence to staff and volunteers alike.

Further evolution and refinement of our membership database, Pelham, occurred during 2022, enabling analysis of membership trends and participation levels. Event entry systems are now able to access and exchange information with Pelham, which will provide a gear change in terms of usability, membership and coach record keeping and competition results. The information held by and accessible from Pelham has never been available before and will provide statistical and analytical benefits at an eminently affordable cost in years to come.

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. The Pony Club continues to be an efficient, trusted and relevant organisation focused on supporting children and young people in the equestrian world.

Developing rounded, well-educated Members also benefits the wider equestrian sector by providing knowledgeable candidates for careers in horse related spheres. It is notable that a high percentage of those shortlisted to represent Great Britain in equestrian sports in the 2021 Tokyo Olympics were ex-Pony Club members. Nevertheless, irrespective of competitive prowess, the skills imparted by The Pony Club of teamwork, sportsmanship, horsemanship, kindness, resilience,

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The Pony Club

Trustees’ annual report

For the year ended 31 December 2022

dedication and independent thought are valuable life skills for all members. Many friendships gained through participation in Pony Club activities endure for life.

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 2022 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 £511k (2021: £785k). Income from subscriptions grew to £2,600k (2021: £2,337k), training to £5,899k (2021: £5,166k) and competitions to £2,663k (2021: £2,548k). Total income increased to £12,500k (2021: £11,246k). Expenditure on training stood at £8,313k (2021: £7,163k) and on competitions at £3,204k (2021: £2,887k). Total expenditure increased to £11,988k (2021: £10,460k). Careful cost control means that an acceptable surplus for the year has again been achieved, enabling us to increase the central reserves to more appropriate levels.

Our database management system, Pelham, has been live since late 2020. £42k was spent on further developing the database system during the year and this will continue in 2023 as we continue to increase functionality and compatibility with third party event entry systems. Amortisation of £56k was recognised during 2022. The database management system remains as an intangible asset with a capitalised value of £192k.

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:

Contagious Viruses and Diseases

Disease or pandemic within the human or equine population, particularly if accompanied by government restrictions on human or equine interaction, could impact in a materially adverse manner on membership activities. Cost control is paramount should such an event occur again.

Loss of Membership

Membership has bucked the historical trend of decline by demonstrating stability or growth since 2020. The Trustees and the Senior Leadership team continue to pursue a strategy to attract new and to retain existing members. Nevertheless, a significant loss of members would translate into a reduction in income and provide renewed challenges to the continued operation of The Pony Club.

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The Pony Club

Trustees’ annual report

For the year ended 31 December 2022

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. The use of technology to assist the staging of events is increasingly in evidence, which serves to alleviate some of the demands historically made of volunteers.

Adverse publicity and reputational damage

There is a risk that the activities of employees, volunteers, members and members’ families could 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. Investment in the new membership database, maintaining cyber security and complying with GDPR regulations continued throughout 2022 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 loss of members. To manage these risks The Pony Club holds insurance policies and monitors its reserves carefully. The Pony Club Trustees have continued to strengthen central reserves in 2022 to facilitate robust financial health and to cope with as many foreseeable and un-foreseeable risks, costs or losses as possible.

Reserves Policy and going concern

At 31 December 2022, the unrestricted funds of the Charity totalled £8,665k (2021: £8,172k). Of this sum £6,986k (2021: £6,994k) represents funds held by Branches and Areas leaving £1,673k held in central reserves (2021: £1,175k) and £7k (2021: 4k) 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 between six to twelve month’s expenditure. Office expenditure during the year amounted to £1,484k , (2021: 2,104k) so total central reserves were equivalent to 10.5 months expenditure (2021: 6.5 months).

The Trustees conclude that it is appropriate to treat The Pony Club as a going concern.

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The Pony Club

Trustees’ annual report

For the year ended 31 December 2022

Plans for the future

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. Membership growth will be dependent on the retention of existing members and recruitment of new members.

As the environment in which we operate continues to be challenging, the principles and objectives 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. The company is established under a Memorandum of Association which defines 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 derives its income from member subscriptions, sponsorship and entry fees from events. It does not engage in public fundraising activities by professional fund raisers or commercial participators. The Pony Club Branches are well supported by many generous individuals and volunteers who organise fund raising events to raise money locally for Branches of the Pony Club in a variety of ways. The Pony Club observes and complies with the relevant fundraising regulations and codes. During the year there was no non-compliance of these regulations and codes and The Pony Club received no complaints relating to its fundraising practice. We are committed to ensuring that no vulnerable person feels subject to unreasonable intrusion of privacy or consistent or undue pressure to donate.

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.

The charitable aims are delivered via a network of some 320 geographically spread Branches and approximately 300 Centres in Great Britain and Northern Ireland. Some 22,000 children up to the age of 25 subscribe as Pony Club Branch members, whilst approaching 10,000 subscribe as Centre members. Branches and Centres are overseen by 19 Area Representatives, volunteers who assist in

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The Pony Club

Trustees’ annual report

For the year ended 31 December 2022

the administration of Branch and Centre activities in their geographical area, troubleshoot as required, and are on hand to disseminate advice, help and best practice. They also organise of a set of Area competitions each year and coordinate the calendar of events in their Area.

Each Branch is run by a volunteer committee, chaired by a District Commissioner. Branches organise training sessions known as rallies for their members, alongside a diverse range of other educational and social activities. Organisation of rallies, training activities and local competitions is generally volunteer-led, whilst specific equestrian instruction is generally delivered by paid, freelance instructors. Members who own their own horse or pony pay a subscription to join the Branch, and a fee to attend rallies and other training and competitive events. The nine equestrian Sports recognised and promoted by the Pony Club organise competitive activities, starting a local level and culminating for most sports in annual National Championships. Branches are semiautonomous, with responsibility for their own profitability and financial well-being, and account to the parent regarding levels of participation in their ridden training and competitive activities, Test achievements, Achievement Badge awards and their financial health. 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.

Centre membership is available to children and young adults who do not own their own horse but hire a horse or pony from a Riding Centre linked to The Pony Club. Many who are from urban backgrounds or unable to afford to own their own horse find the Centre option very appealing. Pony Club Centre membership provides access to Pony Club insurance, training, educational and competitive events.

The Pony Club is governed by its Articles of Association and a Governance Document which defines the relationship between volunteers and an executive team of 22 based in an office in Warwickshire. Ultimate responsibility for decision making resides with the volunteer Trustees, who oversee the composition and roles of the volunteer committees responsible for Finance, IT, Governance, Sports, Training, Health, Safety and Safeguarding, Horse Welfare, Volunteering and miscellaneous other Pony Club activities. The Pony Club has a clear set of rules defining the relationship between the parent and associated Branches and Centres, and the conduct required at all levels of the organisation. 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.

The Trustees review the aims, objectives and activities of The Pony Club each year. This report looks at what The Pony Club has achieved and the outcomes of its work in the reporting period. The Trustees report the success of each key activity and the benefits The Pony Club has brought to the people that it is set up to help. The review also helps the Trustees ensure The Pony Club’s aims, objectives and activities remain focussed on its stated purpose.

The Trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing The Pony Club’s aims and objectives and in planning

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The Pony Club

Trustees’ annual report

For the year ended 31 December 2022

its future activities. In particular the Trustees consider how planned activities will contribute to the aims and objectives that have been set.

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 relating to equestrian activities of The Pony Club to committees. These committees are Training, Health & Safety, Safeguarding and Horse Welfare, 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.

In accordance with the Articles of Association of The Pony Club, the Board of Trustees is responsible for the appointment of Trustees. Any Trustee appointed by the Board will hold office until the next AGM or EGM, at which the Members of The Pony Club determine whether to reappoint them as Trustees for a three-year term. Two Trustees are appointed by the Area Representatives. The Board of Trustees also nominates 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 Trustee vacancies, these 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.

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The Pony Club

Trustees’ annual report

For the year ended 31 December 2022

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:

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:

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

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The Pony Club

Trustees’ annual report

For the year ended 31 December 2022

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 total number of such guarantees at 31[st] December 2022 was 36 (2021: 36). 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[nd] June 2023 and 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 2022 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:

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.

14

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:

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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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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Independent auditor’s report

to the Members of

The Pony Club

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)

17 July 2023

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

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The Pony Club

Consolidated statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 December 2022

Restricted
£
20,000
-
-
-
-
-
7,551		 2022
Total
£
731,023
2,600,300
5,899,483
2,662,843
114,337
6,736
485,378		 Unrestricted
£
588,744
2,337,183
5,166,839
2,548,904
154,346
4,489
397,444		 Restricted
£
48,185
-
-
-
-
-
-		 2021
Restated
Total
£
636,929
2,337,183
5,166,839
2,548,904
154,346
4,489
397,444
12,472,550 27,551 12,500,100 11,197,949 48,185 11,246,134
470,170
8,305,052
3,204,296		 -
8,842
-		 470,170
8,313,894
3,204,296		 408,928
7,090,416
2,887,833		 -
73,581
-		 408,928
7,163,997
2,887,833
11,979,518 8,842 11,988,360 10,387,177 73,581 10,460,758
493,031
-		 18,709
-		 511,740
-		 810,772
-		 (25,396)
-		 785,376
-
493,031
8,172,332		 18,709
3,788		 511,740
8,176,120		 810,772
7,361,560		 (25,396)
29,184		 785,376
7,390,744

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

Company no. 03072475

Balance sheets

As at 31 December 2022

As at 31 December 2022
Balance sheets		 As at 31 December 2022
Balance sheets		 As at 31 December 2022
Balance sheets		 Company no. 03072475 Company no. 03072475
2022
2021
Note
£
£
Fixed assets:
13
219,007
247,189
14
1,234,885
1,202,447
15
-
-
1,453,893
1,449,637
Current assets:
17
440,463
607,143
18
60,091
60,091
19
7,863,003
7,168,179
8,363,557
7,835,413
Liabilities:
20
1,129,590
1,108,930
7,233,967
6,726,483
8,687,860
8,176,120
23a
22,497
3,788
6,985,714
6,993,594
6,616
3,833
1,673,034
1,174,905
Total unrestricted funds
8,665,364
8,172,332
8,687,860
8,176,120
Debtors
Funds:
Restricted income funds
Unrestricted income funds:
General funds
Non-charitable trading funds
Designated funds
Creditors: amounts falling due within one year
Net current assets
Total net assets
Investment in subsidiary undertaking
Cash at bank and in hand
Short term deposits
Tangible assets
The group
Intangible assets
Total funds		 2022
2021
£
£
219,007
247,189
1,234,885
1,202,447
2
2
The charity
1,453,893
440,463
60,091
7,863,003		 1,449,637
607,143
60,091
7,168,179		 1,453,895
440,860
60,091
7,820,773		 1,449,639
665,231
60,091
7,066,906
8,363,557
1,129,590		 7,835,413
1,108,930		 8,321,725
1,094,379		 7,792,228
1,069,584
7,233,967 6,726,483 7,227,346 6,722,643
8,687,860 8,176,120 8,681,240 8,172,281
22,497
6,985,714
6,616
1,673,034		 3,788
6,993,594
3,833
1,174,905		 22,497
6,985,714
-
1,673,029		 3,788
6,993,594
-
1,174,899
8,665,364 8,172,332 8,658,743 8,168,493
8,687,860 8,176,120 8,681,240 8,172,281

Approved by the trustees on 22 June 2023 and signed on their behalf by

T R G Vestey Chairman

20

The Pony Club

Consolidated statement of cash flows

For the year ended 31 December 2022

Net income for the reporting period
(as per the statement of financial activities)
Depreciation charges
Loss on disposal of fixed assets
Amortisation
Interest on short term deposits
Decrease in stock
Decrease / (increase) debtors
Increase in creditors
Net cash provided by operating activities
Analysis of cash and cash equivalents
Short term deposits
Cash at bank and in hand
Total cash and cash equivalents
Cash flows from operating activities
Net cash used in investing activities
Cash flows from investing activities:
Interest on short term deposits
Purchase of intangible assets
Purchase of fixed assets
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year		 £
£
511,740
251,756
11,775
70,082
(6,736)
-
166,680
20,660
1,025,956
6,736
(295,970)
(41,900)
(331,134)
694,823
7,228,270
7,923,093
At 1 January
2022
Cash flows
£
£
60,091
-
7,168,179
694,823
2022		 £
£
511,740
251,756
11,775
70,082
(6,736)
-
166,680
20,660
1,025,956
6,736
(295,970)
(41,900)
(331,134)
694,823
7,228,270
7,923,093
At 1 January
2022
Cash flows
£
£
60,091
-
7,168,179
694,823
2022		 £
£
785,376
289,119
861
70,082
(4,489)
160,984
(98,080)
38,463
1,242,315
4,489
(313,270)
-
(308,780)
933,535
6,294,735
7,228,270
Other
changes
At 31
December
2022
£
£
-
60,091
-
7,863,002
2021		 £
£
785,376
289,119
861
70,082
(4,489)
160,984
(98,080)
38,463
1,242,315
4,489
(313,270)
-
(308,780)
933,535
6,294,735
7,228,270
Other
changes
At 31
December
2022
£
£
-
60,091
-
7,863,002
2021
1,025,956
(331,134)		 1,242,315
(308,780)
At 1 January
2022
£
60,091
7,168,179		 Other
changes
£
-
-
694,823
7,228,270		 933,535
6,294,735
7,923,093 7,228,270

Cash flows
£
-
694,823
At 31
December
2022
£
60,091
7,863,002
7,228,270 694,823 - 7,923,093

21

The Pony Club

Notes to the financial statements

For the year ended 31 December 2022

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 Lowlands Equestrian Centre, Shrewley, Warwickshire CV35 7AX.

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.

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. Sufficient reserves are held centrally and 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 left 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.

f) Accounting for Branches and Areas

22

The Pony Club

Notes to the financial statements

For the year ended 31 December 2022

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.

h) 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.

i) 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:

Irrecoverable VAT is charged as a cost against the activity based upon their proportional incomes.

j) 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%

k) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

l) 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 amortised over a straight line basis over 5 years.

23

The Pony Club

Notes to the financial statements

For the year ended 31 December 2022

1 Accounting policies (continued)

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:

over 50 years over 4 years over 3 to 5 years over 2 years over 1 to 10 years over the life of the lease

Investments in subsidiaries are at cost.

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.

Short term deposits includes cash balances that are invested in accounts with a maturity date of between 3 and 12 months.

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.

t) 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.

24

The Pony Club

Notes to the financial statements

For the year ended 31 December 2022

BEF Grant Income
Branch fundraising income
Donations income		 Unrestricted
£
43,251
-
667,773		 £
-
20,000
-
Restricted		 2022
Total
£
43,251
20,000
667,773		 Unrestricted
£
4,774
-
583,970		 £
-
48,185
-
Restricted		 2021
Restated
Total
£
4,774
48,185
583,970
711,023 20,000 731,023 588,744 48,185 636,929

3 Income from charitable activities

Income from charitable activities es
Unrestricted
£
1,782,186
326,605
389,446
63,741
36,096
2,225
Sub-total for Subscriptions
2,600,300
64,720
5,649,844
184,919
Sub-total for Training
5,899,483
437,766
1,954,273
270,803
Sub-total for Competitions
2,662,843
11,162,626
Unrestricted
£
114,337
114,337
Central training income
Overseas Branch affiliation fees
Central competition income
Branches competition income
Areas training income
Areas competition income
Sponsorship, sale of
merchandise and commission
Centre affiliation fees
Branches training income
Branch subscriptions
Branch gift aid
Centre subscriptions
Centre gift aid
Income from other trading activities
Total income from charitable
activities		 Unrestricted
£
1,782,186
326,605
389,446
63,741
36,096
2,225		 £

-

-

-

-

-

-
Restricted		 2022
Total
£
1,782,186
326,605
389,446
63,741
36,096
2,225		 Unrestricted
£
1,626,997
315,132
292,661
53,151
41,302
7,940		 £

-

-

-

-

-

-
Restricted		 2021
Total
£
1,626,997
315,132
292,661
53,151
41,302
7,940
2,600,300
64,720
5,649,844
184,919
-

-

-

-		 2,600,300
64,720
5,649,844
184,919		 2,337,183
73,101
4,966,585
127,152		 -

-

-

-		 2,337,183
73,101
4,966,585
127,152
5,899,483
437,766
1,954,273
270,803
-

-

-

-		 5,899,483
437,766
1,954,273
270,803		 5,166,839
403,490
1,807,623
337,791		 -

-

-

-		 5,166,839
403,490
1,807,623
337,791
2,662,843
-		 2,662,843 2,548,904 - 2,548,904
11,162,626
-		 11,162,626 10,052,926 - 10,052,926
£
-
Restricted		 2022
Total
£
114,337		 Unrestricted
£
154,346		 £
-
Restricted		 2021
Restated
Total
£
154,346
114,337 - 114,337 154,346 - 154,346

25

The Pony Club

Notes to the financial statements

For the year ended 31 December 2022

5
Income from investments
6
Other income
Central bank interest received
Areas other income received
Central other income received
Branches other income received
Branches bank interest received		 Unrestricted
£
40
6,696		 £
-
-
Restricted		 2022
Total
£
40
6,696		 Unrestricted
£
-
4,489		 £
-
-
Restricted		 2021
Total
£
-
4,489
6,736 - 6,736 4,489 - 4,489
Unrestricted
£
26,535
390,758
60,534		 Restricted
£
-
7,551
-		 2022
Total
£
26,535
398,308
60,534		 Unrestricted
£
48,497
328,607
20,339		 Restricted
£
-
-
-		 2021
Restated
Total
£
48,497
328,607
20,339
477,827 7,551 485,378 397,444 - 397,444

Other Income does not include any Trading activity and is made up largely of income received for trips and other ancillary events organised by the Branch for the benefit of their members.

26

The Pony Club

Notes to the financial statements

For the year ended 31 December 2022

Analysis of expenditure (current year)
Costs of camps, rallies and other training events
Costs of competitions
Centre membership
Branch costs
Public liability insurance
Fundraising and publicity
Staff payroll, pension, ers NI,
Life and health and temp staff
Irrecoverable VAT
Depreciation
Premises costs
Office costs
Other expenses
Legal and professional
Governance costs
Support costs
Total expenditure 2022		 Cost of
raising funds
£
-
-
-
151,746
-
170,043
-
-
-
-
-
.
-
-
-		 Charitable activities Governance
costs
£
-
-
-
-
-
-
44,323
-
-
-
-
-
-
105,277
-		 Support costs
£
-
-
-
-
-
-
697,909
16,918
146,218
320,437
14,999
63,338
74,387
-
-		 2022
Total
£
6,196,458
2,114,449
94,550
1,517,457
272,538
170,043
881,291
16,918
146,218
320,437
14,999
63,338
74,387
105,277
-		 2021
Total
£
5,212,187
1,878,474
70,670
1,191,286
220,570
123,030
786,037
16,704
73,030
360,014
292,965
64,549
90,365
80,878
-
Training
£
6,196,458
-
94,550
910,474
187,780
-
34,349
-
-
-
-
-
-
-
-		 Competitions
£
-
2,114,449
-
455,237
84,758
-
104,710
-
-
-
-
-
-
-
-
321,789
14,960
133,421		 7,423,611
89,760
800,523		 2,759,154
44,880
400,262		 149,600
(149,600)
-		 1,334,205
-
(1,334,205)		 11,988,359
-
-		 10,460,758
-
-
470,170 8,313,894 3,204,296 - - 11,988,359

27

The Pony Club

Notes to the financial statements

For the year ended 31 December 2022

7b Analysis of expenditure (prior year)

Analysis of expenditure (prior year)
Costs of camps, rallies and other training events
Costs of competitions
Centre membership
Branch costs
Public liability insurance
Fundraising and publicity
Staff payroll, pension, ers NI,
Life and health and temp staff
Irrecoverable VAT
Depreciation
Premises costs
Office costs
Other expenses
Legal and professional
Governance costs
Support costs
Total expenditure 2021		 Cost of
raising funds
£
-
-
-
119,985
-
123,030
-
-
-
-
-
.
-
-
243,015
11,521
148,916
403,452		 Charitable activities Governance
costs
£
-
-
-
-
-
-
34,330
-
-
-
-
-
-
80,878
115,208
(115,208)
-
-		 Support costs
£
-
-
-
-
-
-
595,377
16,704
73,030
360,014
292,965
63,027
88,045
-
1,489,162
-
(1,489,162)
-		 2021
Total
£
5,212,187
1,878,474
70,670
1,191,286
220,570
123,030
786,037
16,704
73,030
360,014
292,965
64,549
90,365
80,878
Training
£
5,211,831
-
70,670
719,910
145,576
-
19,168
-
-
-
-
-
-
-
6,167,155
69,125
893,497
7,129,777		 Competitions
£
-
1,878,474
-
359,955
74,994
-
132,794
-
-
-
-
-
-
-
2,446,217
34,562
446,749
2,927,528
10,460,758
-
-
10,460,758

28

The Pony Club

Notes to the financial statements

For the year ended 31 December 2022

This is stated after charging / (crediting):

This is stated after charging / (crediting):
2022 2021
£ £
Depreciation 251,756 289,119
Loss on Disposal of Fixed Assets 11,775 861
Amortisation 70,082 70,082
Impairment - -
Operating lease rentals:
Property 29,013 67,333
Other 3,803 4,490
Auditor's remuneration (excluding VAT):
Audit 22,350 20,000
Other services 1,340 1,300

Staff costs were as follows:

Staff costs were as follows:
Salaries and wages
Casual and temporary staff costs
Social security costs
Employer’s contribution to defined contribution pension schemes
Health and life insurance costs		 2022
£
750,254
78,184
52,853
9,300
7,618		 2021
£
668,082
65,243
48,345
7,550
9,154
898,209 798,374

The following number of employees received employee benefits (excluding employer pension costs and employer's national insurance) during the year between:

2022 2021
£ £
£70,000 - £80,000 1 1

The total employee benefits (including employer pension contributions and employer's national insurance) of the key management personnel were £334,307 (2021: £303,921). The organisation considers key management personnel to be the Chief Executive, the Deputy Chief Executive, Finance Manager, Head of Marketing, Head of Membership and Technology and Operations Manager.

No trustee remuneration was paid to any trustees during the year. Trustees' expenses were reimbursed to 3 (2021: 2) trustees during the year.

Trustees' expenses represents the payment or reimbursement of costs as follows:

Trustees' expenses represents the payment or reimbursement of costs as follows:
2022 2021
£ £
Travel and subsistence costs 4,779 1,387

29

The Pony Club

Notes to the financial statements

For the year ended 31 December 2022

10 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was as follows:

Fundraising
Other central functions
Training
Other central functions
The full-time equivalent average number of employees during the year was as follows:
Fundraising
Training
Competitions
Competitions		 2022
No.
1.0
3.2
3.0
14.2		 2021
No.
0.6
2.5
3.0
14.4
21.4 20.5
2022
No.
1.0
3.2
3.0
13.2		 2021
No.
0.6
2.5
3.0
13.2
20.4 19.4

11 Related party transactions

Andrew James (Trustee) – payments of £1,000, (2021: £750) were 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 for any of the Pony Club Branches concerned. 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 £4,753 (2021: £4,102) and payments are also made by TEFL £1,415 (2021: £290) for the use of Pony Club cross country schooling facilities. At 31.12.22 TEFL was owed £nil (2021: £nil) by the Pony Club in respect of the above transactions.

Aggregate donations from related parties were £nil (2021: £nil).

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.

30

The Pony Club

Notes to the financial statements

For the year ended 31 December 2022

Charge for the year
At the end of the year
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		 CRM
£
390,296
41,900
Website
£
68,113
-		 Total
£
458,409
41,900
432,195 68,113 500,308
183,974
56,459		 27,245
13,623		 211,219
70,082
240,433 40,868 281,301
191,762 27,245 219,007
206,322 40,868 247,189

The group and charity

The group and charity
Net book value
Cost
Charge for the year
Eliminated on disposal
At the start of the year
Disposals in year
At the start of the year
At the end of the year
At the end of the year
Depreciation
At the end of the year

At the start of the year
Additions in year		 Freehold
land and
property
£
782,520
-
-

Fixtures and
fittings
£
10,757
-
(10,757)
Computer
equipment
£
1,225,966
45,119
(18,659)
Motor vehicles
£
2,911,425
250,851
(38,987)		 Total
£
4,930,668
295,970
(68,403)
782,520 - 1,252,426 3,123,289 5,158,236
65,308
2,760
-		 3,126
530
(3,656)		 1,134,791
51,055
(18,659)		 2,524,996
197,411
(34,312)		 3,728,221
251,756
(56,628)
68,068 - 1,167,187 2,688,095 3,923,350
714,452 - 85,239 435,194 1,234,885
717,212 7,631 91,175 386,429 1,202,447

All of the above assets are used for charitable purposes.

A small number of Branches hold land which is not depreciated, the total value of freehold land is £615k .

31

The Pony Club

Notes to the financial statements

For the year ended 31 December 2022

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 Lowlands Equestrian Centre, Shrewley, Warwickshire CV35 7AX - 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:

Turnover
Total retained earnings carried forward
Retained earnings
Assets
Liabilities
Distribution under Gift Aid to parent charity
The aggregate of the assets, liabilities and reserves was:
Total retained earnings brought forward
Reserves
Profit for the financial year
Profit for the financial year
Taxation on profit on ordinary activities
Cost of sales
Profit on ordinary activities before taxation
Gross profit
Administrative expenses		 2022
£
114,337
(4,000)		 2021
£
154,346
(6,529)
110,337
(22,920)		 147,817
(27,661)
87,418
-		 120,156
-
87,418 120,156
3,836
87,418
(87,418)		 3,836
120,156
(120,156)
3,836 3,836
126,467
(122,628)		 187,040
(183,202)
3,839 3,838

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:

2022 2021
£ £
Gross income 12,486,450 11,228,617
Result for the year 508,959 785,377

32

The Pony Club

Notes to the financial statements

For the year ended 31 December 2022

Debtors
Trade debtors due after one year
Trade debtors due within one year
Amount owed by subsidiary undertaking
Prepayments and accrued income		 2022
£
68,497
20,147
-
351,819
The		 2021
£
68,497
101,159
-
437,487
group		 2022
2021
£
£
68,497
68,497
13,821
15,391
6,724
143,857
351,819
437,487
The charity
440,463 607,143 440,860 665,231

Trade debtors includes a long term debtor of £68,497 (2021: £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.

18 Short term deposits

Short term deposits
The group The charity
Restated Restated
2022 2021 2022 2021
£ £ £ £
Branches 60,091 60,091 60,091 60,091
60,091 60,091 60,091 60,091
Cash at bank and in hand
The group The charity
2022 2021 2022 2021
£ £ £ £
Central 2,379,646 1,586,455 2,379,646 1,586,455
Branches 5,441,128 5,480,450 5,441,128 5,480,450
Trading subsidiary 42,229 101,273 - -
7,863,002 7,168,179 7,820,773 7,066,906
20
Accruals
Creditors: amounts falling due within one year
Taxation and social security
Other creditors
Trade creditors
Deferred income (note 22)		 2022
£
192,721
21,350
55,750
113,293
746,477
The		 2021
£
161,669
22,990
28,937
291,228
604,106
group		 2022
2021
£
£
192,721
160,619
21,350
22,990
54,747
28,937
110,793
288,728
714,768
568,310
The charity		 2022
2021
£
£
192,721
160,619
21,350
22,990
54,747
28,937
110,793
288,728
714,768
568,310
The charity
1,129,590 1,108,930 1,094,379 1,069,584

33

The Pony Club

Notes to the financial statements

For the year ended 31 December 2022

21 Deferred income

Deferred income comprises of income received for branch and centre membership and events taking place in the following financial year and .

2022
£
Balance at the beginning of the year
604,106
Amount released to income in the year
(604,106)
Amount deferred in the year
746,477
Balance at the end of the year
746,477
General
unrestricted
£
219,007
14,374
1,446,268
1,679,649
General
unrestricted
£
247,190
13,275
918,273
1,178,738
£
£
28
20,000
3,760
7,551
Total restricted funds
3,788
27,551
6,993,594
10,304,132
3,833
29,702
General funds
1,174,905
2,154,766
8,172,332
12,488,601
8,176,120
12,516,152
Income &
gains
Restricted funds:
Total funds
Total unrestricted funds
Unrestricted funds:
Other funds
Sport England
Designated funds:
Non charitable trading
The
Analysis of group net assets between funds (prior year)
Net current assets
Branch / Area funds
Movements in funds (current year)
Intangible assets
Tangible fixed assets
Net current assets
Tangible fixed assets
Intangible assets
Net assets at 31 December 2021
Analysis of group net assets between funds (current year)
Net assets at 31 December 2022
At 1 January
2022		 2022
£
Balance at the beginning of the year
604,106
Amount released to income in the year
(604,106)
Amount deferred in the year
746,477
Balance at the end of the year
746,477
General
unrestricted
£
219,007
14,374
1,446,268
1,679,649
General
unrestricted
£
247,190
13,275
918,273
1,178,738
£
£
28
20,000
3,760
7,551
Total restricted funds
3,788
27,551
6,993,594
10,304,132
3,833
29,702
General funds
1,174,905
2,154,766
8,172,332
12,488,601
8,176,120
12,516,152
Income &
gains
Restricted funds:
Total funds
Total unrestricted funds
Unrestricted funds:
Other funds
Sport England
Designated funds:
Non charitable trading
The
Analysis of group net assets between funds (prior year)
Net current assets
Branch / Area funds
Movements in funds (current year)
Intangible assets
Tangible fixed assets
Net current assets
Tangible fixed assets
Intangible assets
Net assets at 31 December 2021
Analysis of group net assets between funds (current year)
Net assets at 31 December 2022
At 1 January
2022		 2022
£
604,106
(604,106)
746,477
The		 2021
£
584,274
(582,868)
602,700
group		 2022
2021
£
£
568,310
584,274
(568,310)
(582,868)
714,768
566,905
The charity		 2022
2021
£
£
568,310
584,274
(568,310)
(582,868)
714,768
566,905
The charity
746,477 604,106 714,768 568,310

£
-
1,220,511
5,765,203
Designated
funds		 Restricted
funds
£
-
-
22,497
Total funds
£
219,007
1,234,885
7,233,967
1,679,649 6,985,714 22,497 8,687,860

£
-
1,189,172
5,804,422
Designated
funds		 Restricted
funds
£
-
-
3,788
Total funds
£
247,190
1,202,447
6,726,483
1,178,738 6,993,594 3,788 8,176,120
£
20,000
7,551
Income &
gains
 £
(4,084)
(4,758)

Expenditure &
losses		 £
-
-

Transfers		 £
15,944
6,553
At 31 December
2022
3,788 27,551 (8,842) - 22,497
6,993,594
3,833
1,174,905		 10,304,132
29,702
2,154,766		 (10,312,013)
(26,920)
(1,656,637)		 -
-
-		 6,985,714
6,616
1,673,034
8,172,332 12,488,601 (11,995,569) - 8,665,364
8,176,120 12,516,152 (12,004,411) - 8,687,860

22a Analysis of group net assets between funds (current year)

22b Analysis of group net assets between funds (prior year)

23a 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 2022

23b Movements in funds (prior year)

Total restricted funds
General funds
Total unrestricted funds
Sport England
Unrestricted funds:
Designated funds:
Restricted funds:
Other funds
Branch / Area funds
Non charitable trading
Total funds		 £
(210)
29,394
At 1 January
2021		 £
48,185
-

Income &
gains		 £
(47,947)
(25,634)

Expenditure &
losses		 £
-
-

Transfers		 £
28
3,760
At 31 December
2021
29,184 48,185 (73,581) - 3,788
6,725,925
3,834
631,801		 9,248,798
34,189
1,914,962		 (8,981,129)
(34,190)
(1,371,858)		 -
-
-		 6,993,594
3,833
1,174,905
7,361,560 11,197,949 (10,387,177) - 8,172,332
7,390,744 11,246,134 (10,460,758) - 8,176,120

Purposes of restricted funds

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.

24 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:


each of the following periods:
Less than one year
One to five years		 2022
2021
£
£
29,500
29,500
24,583
54,083
Property		 2022
2021
£
£
366
366
1,037
1,403
Equipment
54,083 83,583 1,403 1,769

25 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