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2020-12-31-accounts

THE KENNEL CLUB EDUCATIONAL TRUST REPORT AND FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2020

REGISTERED COMPANY NO. 6228200 REGISTERED CHARITY NO. 1121454

THE KENNEL CLUB EDUCATIONAL TRUST REGISTERED COMPANY NO. 6228200 REGISTERED CHARITY NO. 1121454 REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

CONTENTS

TRUSTEES' REPORT ..…………………………………………………………………………………………………………………………………...…3 STATEMENT OF TRUSTEES' RESPONSIBILITIES ..................................................................................................... 6 AUDITORS' REPORT .............................................................................................................................................. 7 STATEMENT OF FINANCIAL ACTIVITIES .............................................................................................................. 11 BALANCE SHEET ................................................................................................................................................. 12 NOTES ON THE FINANCIAL STATEMENTS .......................................................................................................... 13

THE KENNEL CLUB EDUCATIONAL TRUST

TRUSTEES' REPORT

YEAR ENDED 31 DECEMEBER 2020

The Kennel Club Educational Trust is a registered charity (no.1121454) and company limited by guarantee (no. 6228200), and is governed by its Memorandum and Articles of Association.

The Trustees

The Trustees (who are the Directors for Companies Act purposes) who served throughout the period covered by the attached financial statements were:

Mr G King (Chairman) Mr J Lloyd Mr P Rawlings Mrs H Kerfoot (nee Geeson) Mr A Allcock OBE

Mr King, Mr Rawlings, Mrs Kerfoot, and Mr Allcock are members of The Kennel Club Limited.

Administrative Details

The Principal office of the Trust is: The Kennel Club Limited 10 Clarges Street London W1J 8AB Bankers: Barclays Bank plc 1-2 Trinity Way Chingford London E4 8TD Auditors: BDO LLP 55 Baker Street London W1U 7EU Solicitors: Farrer & Co LLP 66 Lincolns Inn Fields London WC2A 3LH Stone King LLP Boundary House 91 Charterhouse Street London EC1M 6HL

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THE KENNEL CLUB EDUCATIONAL TRUST TRUSTEES' REPORT

Charitable Objectives

The objects of the charity are to advance the education of the public, in particular but not exclusively dog owners and trainers, in responsible dog ownership, including public safety, obedience training and the health and welfare of dogs.

Financial Statements and Financial Review

The accompanying financial statements show that, at the year end, the charity’s unrestricted funds stood at £1,817k (2019: £1,971k), of which approximately £1,325k was represented by the value of the charity’s long leasehold property. In addition, the Trust held restricted funds amounting to £121k as at 31 December 2020 (2019: £125k). The reduction in restricted and unrestricted reserves reflects a deficit for the year of £158k (2019: £238k) with income having fallen from £104k in 2019 to £63k in 2020 as a result of the Trust not being able to hire out its premises for its core activity due to the Covid pandemic. Costs have been reduced where possible to offset this enforced loss of income but to a large extent the Trust’s costs are the fixed costs of property occupation and of administration which are unaffected by activity levels. Costs incurred against the restricted fund have however been reduced substantially to reflect the low activity levels possible in this area.

Since the year end, the trustees have decided to discontinue the video production activity funded by the Trust’s restricted fund on the basis that it is no longer core to the delivery of the Trust’s charitable objectives, and have therefore returned the unspent balance of that restricted fund to the donor, The Kennel Club Limited.

The trustees have reviewed the level of unrestricted reserves carried by the charity other than those invested in property, and which represent nearly 2 years’ unrestricted expenditure. The trustees regard this level of reserves as appropriate in the context of uncertainty over the charity’s income streams and the time it will take to develop alternative sources of income to cover the ongoing costs of maintaining the charity’s operation.

In the light of the above information, the trustees consider that the charity’s reserves levels place it in a strong position to be able to continue its operations for the foreseeable future and that the going concern basis on which the accounts are prepared is, therefore, appropriate.

Structure, governance and management

Organisational Structure

As at 31 December 2020 the Board of Trustees (who are also the Directors for the purposes of Company Law) comprised 5 members who are responsible for the overall policy, direction and strategy of the charity and the oversight of its financial affairs. All are invited to attend trustees' meetings, held throughout the period as required.

Appointment of Trustees

Two Trustees are nominated by the Board of the Kennel Club. Further Trustees are appointed by the existing Trustees. All Trustees have received training in connection with their duties and responsibilities upon induction.

Background

The charity was formed at about the same time as coming to an agreement with the Royal Agricultural Society of England (RASE) to lease a venue suiting all canine educational needs at Stoneleigh Park, on which the current facility was constructed to its own specification. The agreement has subsequently been transferred by RASE to the MARS Pension Trustees.

Risk management

The Trustees have considered the major risks to which the Trust may be exposed and concluded that they have in place controls which could reasonably be expected to mitigate those risks and thus protect the financial and reputational standing of the Trust.

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THE KENNEL CLUB EDUCATIONAL TRUST TRUSTEES' REPORT

Trustees

Each of the Trustees has confirmed that so far as he/she is aware, there is no relevant audit information of which the Trust's auditors are unaware, and that he/she has taken all the steps that he ought to have taken as a Trustee and Director in order to make himself/herself aware of any relevant audit information and to establish that the Trust's auditors are aware of that information.

Public Benefit

The Trustees are fully aware of the Charity Commission's requirements on the subject of public benefit and of their obligations to fulfil the Trust’s charitable objects. The Trustees have given careful consideration to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives and in planning its future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives of the charity.

Future plans

The activities of the Trust are focused and aimed towards the delivery of its charitable objectives.

The activities provided and supported by the charity, including training days, seminars and open days at the Stoneleigh Building, have resumed following the lifting of Covid restrictions during the Spring and Summer of 2021 whilst still complying with remaining restrictions and health & safety requirements generally.

The immediate focus is on returning the Stoneleigh Building to its pre-pandemic levels of activity and also to expand the scope and range of services the Trust can provide in satisfying its charitable purpose.

Auditors

BDO LLP the Trust’s auditors will be proposed for reappointment.

The Trustees’ report is prepared in accordance with the small companies’ regime.

On behalf of the Trustees:

Mr G King (Chairman) Date 7[th] December 2023

5

THE KENNEL CLUB EDUCATIONAL TRUST STATEMENT OF TRUSTEES' RESPONSIBILITIES YEAR ENDED 31 DECEMBER 2020

The Trustees who are also the Directors of the charity for the purposes of company law, are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102.

Company law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the net income and expenditure, of the charity for that period.

In preparing those financial statements the trustees are required to:

The Trustees are responsible for keeping accounting records that disclose with reasonable accuracy at any time the financial position of the charity 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

6

THE KENNEL CLUB EDUCATIONAL TRUST INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE KENNEL CLUB EDUCATIONAL TRUST

Opinion on the financial statements

In our opinion, the financial statements:

We have audited the financial statements of The Kennel Club Educational Trust (“the Charitable Company”) for the year ended 31 December 2020 which comprise the Statement of Financial Activities (Incorporating an Income and Expenditure Account), the Balance Sheet and 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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 financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remain independent of the Charitable Company in accordance with the ethical requirements 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.

Conclusions related 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 Charitable Company'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.

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Report and Financial Statements, other than the financial statements and our auditor’s report thereon. Our opinion on the 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 financial statements or our knowledge obtained in 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 there is a material misstatement in the 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.

7

THE KENNEL CLUB EDUCATIONAL TRUST INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE KENNEL CLUB EDUCATIONAL TRUST (continued)

Other Companies Act 2006 reporting

In our opinion, based on the work undertaken in the course of the audit:

In the light of the knowledge and understanding of the Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion;

Responsibilities of Trustees

As explained more fully in the Statement of Trustee’s Responsibilities, the Trustees (who are also the directors of the 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 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 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 as auditor under the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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.

8

THE KENNEL CLUB EDUCATIONAL TRUST INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE KENNEL CLUB EDUCATIONAL TRUST (continued)

Extent to which the audit was capable of detecting irregularities, including fraud

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 is detailed below:

Non-compliance with laws and regulations

Based on:

We considered the significant laws and regulations to be The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), the Companies Act 2006, the Charities Act 2011, Corporate and VAT legislation, Health and Safety and the Bribery Act 2010.

The is also subject to laws and regulations where the consequence of non-compliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified such laws and regulations to be the health and safety legislation.

Our procedures in respect of the above included:

Fraud

We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:

9

THE KENNEL CLUB EDUCATIONAL TRUST INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE KENNEL CLUB EDUCATIONAL TRUST (continued)

Based on our risk assessment, we considered the areas most susceptible to fraud to be revenue recognition and management override of controls.

Our procedures in respect of the above included:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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. 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.

Philip Cliftlands (Senior Statutory Auditor) For and on behalf of BDO LLP, statutory auditor London, UK Date 08 December 2023

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

10

THE KENNEL CLUB EDUCATIONAL TRUST STATEMENT OF FINANCIAL ACTIVITIES (Incorporating an Income and Expenditure Account) YEAR ENDED 31 DECEMBER 2020

----- Start of picture text -----
Notes 2020 2019
Unrestricted Restricted Total Unrestricted Restricted Total
£ £ £ £ £ £
INCOME
Donations received 20,386 - 20,386 12,318 - 12,318
- -
Donation in kind (Kennel Club Ltd) 39,432 39,432 1,500 1,500
Interest - - 0 1,501 - 1,501
Hire Income 3,461 - 3,461 89,076 - 89,076
63,279 - 63,279 104,395 - 104,395
EXPENDITURE
Charitable expenditure
Rental service costs 100,421 - 100,421 138,895 - 138,895
- -
Donation in kind (Kennel Club Ltd) 39,432 39,432 1,500 1,500
Video production 3 - 3,873 3,873 - 139,480 139,480
- -
Booking Management 48,000 48,000 48,000 48,000
Grants 29,410 - 29,410 15,500 - 15,500
217,263 3,873 221,136 203,895 139,480 343,375
NET INCOME/(EXPENDITURE) (153,984) (3,873) (157,857) (99,500) (139,480) (238,980)
01-Jan 1,971,272 124,778 2,096,050 2,070,772 264,258 2,335,030
Fund balances as at
31 December 1,817,288 120,905 1,938,193 1,971,272 124,778 2,096,050
----- End of picture text -----

All gains and losses in the year are included in the Statement of Financial Activities.

The notes on pages 13 to 16 form part of these accounts.

11

THE KENNEL CLUB EDUCATIONAL TRUST COMPANY NUMBER 6228200 BALANCE SHEET

AS AT 31 DECEMBER 2020

FIXED ASSETS
Tangible fixed assets
CURRENT ASSETS
Debtors
Cash at bank and on deposit
CURRENT LIABILITIES
Creditors
NET CURRENT ASSETS
NET ASSETS
UNRESTRICTED ACCUMULATED FUND
RESTRICTED ACCUMULATED FUNDS


 Notes
4
5
6




 2020
Total
£
1,324,968

39,908
692,588

732,496

(119,271)

613,225

1,938,193

1,817,288
120,905
___
1,938,193
 2019
Total
£
1,371,383

40,323
840,875
881,198

(156,531)

724,667

2,096,050
1,971,272
124,778
__
2,096,050








These accounts have been prepared in accordance with the special provisions relating to small companies regime and in accordance with the provisions of FRS102 Section 1A - Small Entities.

The notes on pages 13 to 16 form part of these accounts.

The accounts on pages 11 to 16 were approved and authorised for issue by the Trustees on 7[th] December 2023 and signed on their behalf on by:

Mr G King (Trustee)

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THE KENNEL CLUB EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

1. ACCOUNTING POLICIES

(a) Basis of accounting

The entity is a charitable company incorporated in England at 10 Clarges Street, London W1J 8AB. The financial statements have been prepared in accordance with FRS 102, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland, including the July 2015 Section 1A 'Small entities' amendments. The financial statements have been prepared under the historical cost convention.

The Trustees consider that the charity’s reserves levels place it in a strong position to be able to continue its operations for the foreseeable future and, therefore, that it is appropriate for the accounts of the charity to be prepared on a going concern basis.

The Charity meets the definition of a public benefit entity under FRS 102. The accounts (financial statements) have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following the relevant version of the 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) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

(b) Critical accounting judgements and estimations

In preparing the financial statements, the trustees are required to make estimates and judgements. The items in the financial statements where these judgments and estimates have been made include:

(c) Income

Donations are accounted for as soon as there is entitlement, and the amount is measurable, and receipt is probable.

A donation in kind was received during the year from The Kennel Club amounting to £39,432 (2019: £1,500).

Hire income is recognised on a receivable basis. Income received in advance is treated as deferred income until the services are delivered.

Interest and other income are included when receivable.

(d) Expenditure

Resources expended are recognised in the period in which they are incurred. There were no employees during the year (2019: Nil).

(e) Depreciation

Depreciation is provided to write off the cost of tangible fixed assets over their expected useful lives as follows. The venue works at Stoneleigh Park are being depreciated 50% over 99 years and 50% over 50 years to reflect the terms of the lease and the equipment are depreciated over 10 years.

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THE KENNEL CLUB EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020 (continued)

1. ACCOUNTING POLICIES (continued)

(f) Cash and Cash Equivalents

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity.

(g) Creditors

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.

(h) Debtors

Trade and other debtors are recognised at the settlement amount.

(i) Financial Instruments

The trust 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.

(j) Cash flow statement

As a qualifying entity (for the purposes of FRS 102 Section 1A Small Entities), the charitable entity has taken advantage of the reduced disclosure framework exemption from requirement to prepare a statement of cash flows.

2. NET INCOMING RESOURCES FOR THE YEAR

Net incoming resources for the year are shown after:

Audit fees (paid by the Kennel Club Limited)
Depreciation of tangible assets
 2020
2019
£
£
3,500
1,500
58,363
57,821

14

THE KENNEL CLUB EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020 (continued)

3. RESTRICTED FUNDS (video production)

This restricted fund is held in “Cash at bank and on deposit” in the charity’s balance sheet; all other net assets relate to unrestricted funds. The movement in these funds during the year and the previous year were as follows:

Balance as at 1 January 2019
Incoming resources
Resources expended
Balance as at 31 December 2019
Incoming resources
Resources expended

Balance as at 31 December 2020
 Total
£
264,258
-
(139,480)

124,778
-
(3,873)

120,905

4. TANGIBLE FIXED ASSETS

Cost
At 1 January 2020
Additions

At 31 December 2020
Accumulated depreciation
At 1 January 2020
Charge for the year
At 31 December 2020
Net Book Value
At 31 December 2020
At 31 December 2019		 Leasehold
properties and
improvements
£
1,436,830
-
1,436,830
243,062
21,625
264,687
1,172,143
1,193,768		 Leasehold
properties and
improvements
£
1,436,830
-
1,436,830
243,062
21,625
264,687
1,172,143
1,193,768		 Furniture,
fittings and
equipment
£
362,457
11,948

374,405

184,842
36,738

221,580

152,825

177,615
 Total
£
1,799,287
11,948
1,811,235

427,904
58,363
486,267
1,324,968
1,371,383

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THE KENNEL CLUB EDUCATIONAL TRUST NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020 (continued)

5. DEBTORS

5. DEBTORS
Trade Debtors
VAT recoverable
Prepayments
6. CREDITORS
Trade creditors
Deferred income
Accruals		 2020
£
9,824
28,541
1,543
39,908
2020
£
62,045
9,453
47,773
119,271		 2019
£
38,264
516
1,543
40,323
2019
£
48,061
46,146
62,324
156,531

7. RELATED PARTY TRANSACTIONS

The Trustees received no remuneration in connection with their duties during the period. Trustees expenses of £Nil (2019: £Nil) were incurred in the year.

Apart from transactions with the Kennel Club Limited, as disclosed in these financial statements. There were no related party transactions, as defined in Financial Reporting Standard 102.

8. LEASE COMMITMENTS

The Trust entered into a lease arrangement with the Royal Agricultural Society of England in 2008 to lease the venue at Stoneleigh Park for a period of 99 years at an annual peppercorn rent (if demanded).

16