## **BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE)**
## **ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 DECEMBER 2021**
**Registered Charity in England & Wales No. 1155352**
**Company Registered in England & Wales No. 3443026**
**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE)**
## **CONTENTS**
|||Page|
|---|---|---|
|Reference and Administrative Details||1|
|Board of Trustees Annual Report||2-10|
|Trustees
responsibilities||11|
|Independent Au||12-15|
|Consolidated Statement of Financial Activities||16|
|Consolidated and|Charity Balance Sheets|17|
|Consolidated Cash Flow Statement||18|
|Accounting Policies||19-21|
|Notes to the Financial Statements||22-34|
**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **President:**
Jennie Loriston-Clarke
**Charity registered number:** 1155352
## **Vice President:**
Desi Dillingham
**Company registered number:** 3443026
## **Registered Office:**
## **Chairman:**
Linda Whetstone (deceased 15 December 2021) Caroline Godfrey (from 20 December 2021)
Meriden Business Park Copse Drive Meriden West Midlands CV5 9RG
## **Other Trustees:**
Simon Bates Julie Frizzell (to 12 October 2021) Caroline Godfrey Judy Harvey **Auditors:** Paul Hayler (to 12 October 2021) Mazars LLP Suzanne Homewood First Floor Claire Moir Peter Storr Birmingham Tracy Ormrod (from 12 October 2021) B3 3AX Harry Payne (from 12 October 2021)
Two Chamberlain Square Birmingham B3 3AX
## **Board of British Dressage Trading Limited: Bankers:**
Suzanne Homewood Linda Whetstone (deceased 15 December 2021) Jason Brautigam
91-93 Regent Street Leamington Spa CV32 4NT
**Company Secretary: Solicitors:** Jason Brautigam Wright Hassall LLP
Wright Hassall LLP Olympus Avenue Leamington Spa
## **Key Management personnel:**
Chief Executive - Jason Brautigam CV34 6BF Chief Operating Officer- Ben Waterhouse Chief Financial Officer Steve Phillips (appointed 22 February 2021 Resigned 25 June 2021)
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**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2021**
The board of Trustees present their annual report together with the audited financial statements of British Dressage for the year ended 31 December 2021.
The charity is governed by its Board of Trustees. Members of the Board are the Directors of the company and the Trustees of the charity. The Board consists of members elected by the membership of British Dressage, or as otherwise appointed in accordance with the Articles of Association.
The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association and 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 (FRS102).
## **Objectives and Principle Activities of the Charity:**
The principal objectives and activities of the charity are to advance education and participation in the sport of dressage for the public benefit by:-
- The promotion, as the governing body of the sport of dressage in Great Britain, of participation by persons in Great Britain (both able-bodied and with any form of disability) in healthy recreation in dressage;
- The improvement of the standards of (i) riding, (ii) training and breeding of horses and (iii) horsemanship, all to foster better the enjoyment by participants in dressage, the welfare of horses utilised in dressage, and the safety of both participants and horses;
- The fostering of the provision of advice, education and guidance to dressage participants (as owners of horses, riders, coaches and competition officials) and, in particular to encourage and facilitate the development of young and disabled persons as participants in such ways and to improve their selfconfidence and self-esteem (including the fostering of apprenticeship schemes for young people);
- The development of fair competition between dressage participants and the improvement of the welfare of riders and horses by the banishment of the use of damaging or performance-enhancing drugs and the provision of an effective drug testing regime;
- The fostering of social interaction between participants;
- The improvement of the development of participants and their levels of aspiration in dressage in fostering representative competition at both national and international level by team representative selection (including the provision of advice to the British Equestrian Federation on dressage matters generally and as they affect the Fédération Equestre Internationale).
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**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Values**
British Dressage is committed to work for the benefit of all in the sport, participating in any capacity, at any level.
British Dressage adopts a collaborative, consultative, inclusive, transparent and open approach to the running of the organisation and strives to communicate effectively at all times. Acting with respect, integrity, inclusivity and promoting diversity, equality, teamwork and human and equine welfare, while delivering the highest standards of service for all members, is at the heart of everything that British Dressage does.
British Dressage endeavours to be accountable to members at all times. Major decisions affecting the membership are open to consultation, while the performance of the staff and volunteers is closely monitored and managed on an ongoing basis.
## **Public Benefits**
In setting our objectives and planning our activities, the Trustees have given due consideration to the general guidance published by the Charities Commission relating to public benefits.
## **Amateur sport:**
By acting as the governing body in Great Britain for the sport of dressage, by providing a fair and accessible competition structure and a safe environment for competitions, by training and listing dressage judges and officials, by composing and making available a series of constructive dressage tests, by encouraging participation at all levels by all, offering equal opportunities for riders of all ages with specific activities to encourage the participation of young and disabled persons, and by offering advice and guidance relating to all dressage matters, British Dressage promote the amateur sport of dressage.
## **Education:**
By providing regional training, including training specifically for young or disabled persons, by administering apprenticeship schemes, by developing equestrian and dressage specific UK Coaching Certificates, by maintaining a trainers' database, by organising National and Judges Conventions open to all, and by showcasing the best talent and expertise at our Championship shows, British Dressage provide extensive education and training opportunities.
## **Animal Welfare:**
By promoting good horsemanship, by providing competition opportunities for all types of horses, by guiding judges and stewards at competitions to prevent abuse of horses, by supporting breeding of suitable horses, by carrying out dope testing at events, and by putting the safety and wellbeing of the horse at the heart of everything we do, British Dressage contribute to animal welfare.
## **Health:**
By promoting the sport of dressage to all, by providing a safe environment to participate in dressage, by encouraging participation in equestrian sport regardless of age or disability, British Dressage contribute to public health and fitness.
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**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2021**
## **ACHIEVEMENTS AND REVIEW OF 2021**
2021 was very much a rollercoaster year for British Dressage. The year started with the first three months in complete lockdown, when all training and competition activity had to be suspended for a period of 12 weeks, while COVID continued to make its impact felt throughout the year.
Once lockdown was eased, a 12-month competition calendar was effectively squeezed into just eight months, with the winter and summer seasons run in parallel. Competitions restarted fully in April and were well above the forecast level every month for the remainder of the year. Within ten weeks of the resumption of activity membership and horse registrations had returned to pre-pandemic levels, which was a fantastic achievement under the circumstances.
Internationally, there was an unprecedented British medal haul for dressage at the Olympics, Paralympics and Europeans over the course of the summer with a total of fourteen medals; three gold, six silver and five bronze, surpassing all expectations.
At home, Somerford Park in September, while the inaugural PetPlan Equine Summer Area Festival Championships at Arena UK in October proved to be hugely popular.
British Dressage can genuinely say that the sport is accessible to all with Associated and Quest activity continuing to attract members of all ages and horses of all shapes and sizes, many of whom were new to the sport in 2021. Quest has developed into a vital part of the competition structure and provides the perfect introduction to affiliated dressage competition.
The 2021 BD National Convention was an enjoyable training weekend under a hybrid model, combining online streaming with a live in-person audience, while online training for our judges and officials continued to go from strength to strength throughout the year.
BD Medals of Honour were awarded to Waveney Luke, Carolyn Gardiner, David Trott and Lizzie Walters in recognition of their contribution to the sport. Sir Lee Pearson was made an Honorary Patron to recognise his many achievements as an athlete, as well as being a true ambassador for para dressage and equestrianism as a whole.
The new strategic plan and brand identity (including a new clothing range) were finally launched after the delay due to the pandemic and implementation of the stated aims and objectives began in earnest. In particular ng very well received by officials.
Finances were managed prudently during the year, resulting in a surplus, despite the financial impact of the horse registration extensions, fuelled by the rapid recovery of membership and horse registrations. By year end BD membership was at its highest ever level, with almost 17,500 active members, while 16,000 plus horse registrations also marked a new record.
Once again, BD maintained COVID-19 specific risk assessments and prudent forecasting was undertaken to manage cash flow and maintain a firm control on costs. A Coronavirus Operational Plan was kept under review throughout the year, enabling British Dressage to keep members informed of the guidelines and protocols in place once activity was able to resume.
There is no doubt that the strong performance of British Dressage in 2021 is due to the outstanding work and commitment of staff, volunteers and officials, in so many different capacities. The Trustees record their sincere thanks to all those who worked so hard and continue to keep British Dressage as successful as it is, enabling members of all ages to enjoy dressage, whilst promoting the highest standards of human and equine welfare.
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**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2021**
Full details of membership figures, competition activity and notable results in 2021 will be presented in the report of the Chief Executive at the Annual General Meeting.
## **Looking ahead to 2022**
Sadly, the close of 2021 brought the unexpected passing of our Chair, Linda Whetstone. This came as a massive shock to all within the dressage world, and her spirit, enthusiasm, passion and drive are all greatly missed. Many tributes have been paid to Linda, including in the House of Commons, marking her phenomenal contribution to British Dressage, as well as the enormous legacy she leaves behind due to her economic and political work globally.
The Linda Whetstone Memorial Trophy will be presented in her honour annually from September 2022 to recognise outstanding service to the sport of dressage. British Dressage Finance Director Caroline Godfrey has been appointed Chair on an interim basis, while we go through the formal process to elect a new Chair to replace Linda from the autumn of 2022 onwards.
British Dressage continues to monitor the COVID situation closely to ensure members can continue to compete and train safely. However, we remain hopeful that a full year of exciting competition is achievable, including the U21 European Championships on home soil, as well as the World Championships in Herning for our Senior and Para riders.
The current conflict between Russia and Ukraine is a major international concern. British Dressage has supported international riders from conflict zones. The Trustees do not see any wider impact on the Charity at present but remain vigilant to review actions should there be any further international escalation.
Another major issue for 2022 is the cost-of-living crisis, with the effect this will have on disposable income being felt by all members, particularly in terms of rising fuel costs. British Dressage is mindful of this and will look into ways to mitigate the financial impact on the sport where possible.
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## **BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2021**
The following summarises the priorities for 2022:
- Finalise and implement the new judge education framework, with the first online assessments taking place under the new system in the autumn of 2022.
- Formulate and launch bespoke packages for BD recognised and accredited coaches in spring 2022, supported by the rollout of a Continuous Professional Development programme.
- Promote the opportunities available to Under 21 riders through BD Youth programmes, from regional to national and international level.
- Review and revitalise the professional youth development pathways available to support young people wanting to embark a career in the sport.
- Develop the Para pathways for riders, officials and coaches to ensure that dressage is inclusive and accessible to all.
- Implement the outcomes of the working parties reviewing elements of the competition structure, particularly relating to the silver section, as well as fixtures and venues.
- Gather membership feedback through independently hosted research forums and conducting a detailed membership survey.
- Continue investment in IT, to improve training and education databases, enhance reporting mechanisms and further develop BD online for venues.
- Continue the digitalisation of BD activity, including live streaming, online training, e-learning platforms, interactive webinars and social media engagement.
- for a substantial reinvestment of funds
- Appoint a new Chair by autumn 2022 and support their induction into the role.
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**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2021**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
gained charitable status on 15 January 2014, and a company limited by guarantee. The charity has a wholly owned subsidiary, British Dressage Trading Limited, which carries out trading activities to raise funds for the charity. During the year it made an operating profit of £115,656 which it gift aided to the charity (2020 £88,369).
## **Trustees**
The majority of the Board of Trustees are elected via a membership voting process. Candidates are required to be nominated by two other members of British Dressage. The board consists of a minimum of three trustees and a maximum of twelve, with up to nine being elected by the membership. Applicants are considered by an impartial Nominations Committee (including an external independent adviser) and then suitable applicants are put forward to the membership vote. Trustees can hold office for a period of four years and be nominated again for a further four year period, allowing them to serve a maximum of eight years. If a current Trustee is nominated and elected to the position of Chairman by the members they may serve a maximum of twelve consecutive years in all roles in total. After the twelfth year, the individual must still wait four years before they can be appointed to the Board again.
The Board of Trustees have the discretionary power to co-opt up to three extra trustees with additional expertise or competencies. The Board shall determine the skill-based criteria for each required extra trustee and once the criteria are determined and the role advertised, the Nominations Committee shall interview candidates. The Board shall appoint each extra trustee as recommended by the Nominations Committee.
## **Induction of Trustees**
Trustees receive a full induction programme through the CEO and Chairman. The induction includes a briefing on the terms of reference for the committees they may chair, their roles and responsibilities as trustees and full details of the strategic aims of the charity. The Trustees have access to professional and legal advisers and receive briefings and
## **Remuneration and Expenses**
their role of office. Trustees are entitled to be reimbursed reasonable expenses properly incurred when acting on behalf of the charity.
The details of expenses and transactions relating to Trustees are disclosed in note 14 to the accounts. The Trustees annually using appropriate benchmarking for the individual roles.
## **Decision Making**
In accordance with the s Memorandum and Articles of Association, all recommendations are received by the trustees to discuss at a minimum of five meetings held during the year. All meetings must hold a quorum of three trustees before a decision can be made and ratified.
## **Third Party Indemnity Provision for Trustees**
Qualifying third party indemnity provision of £2m is in place for the benefit of all trustees of the charitable company at a cost of £2,466.
## **Principal Risks and Uncertainties**
The Trustees continue to monitor the major risks to which the Charity is exposed. A risk register has been established and, where appropriate, systems and procedures have been established to mitigate the risks faced. The risk register is reviewed regularly by the Finance and Business Development Committee and at least annually by the Board, to ensure all risks are highlighted and mitigation
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**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2021**
and activities. In addition a COVID-19 specific risk register was established and reviewed regularly during 2020 and 2021.
The key risks the charity faces are deemed to be significant matters that would affect its reputation and ability to operate in accordance with its defined objectives. The Risk Register defines the principal areas of risk as:
- Operational Issues relating to the delivery of activities to members and including safeguarding matters
- Organisational Issues relating to the structure and management of the organisation
- Financial Issues relating to income and financial management
- Governance Issues relating to the governance of British Dressage
- Reputational Issues that might impact on th
- External Issues such as the current global pandemic which impact on all areas of activity
Key administrative controls include formal agendas and minutes for all meetings, detailed terms of reference for all sub-committees, clear authorisation and approval processes and full oversight by the Chair of all matters. noting in particular the impact of the coronavirus pandemic which has affected the charity from March 2020 onwards.
## **REFERENCE AND ADMINISTRATIVE DETAILS**
Please refer to page 1 for details of trustees and key service organisations.
## **FINANCIAL REVIEW AND POLICIES**
## **Reserves policy and Going Concern:**
The Trustees aim to see that the charity holds sufficient reserves to provide a high degree of financial resilience in the event of a period of financial difficulty, with the 2020-21 Coronavirus pandemic proving the need for this. During 2021 a review group set up by the Trustees reviewed the reserves policy of the charity, including consideration of both the level of operational reserves required and investment required for the future to support the initiatives of the current strategic plan.
Reserves are required by the Charity to:
- protect the ongoing viability of the charity, particularly at a time of sever adversity, such as a force majeure event (e.g. the outbreak of serious infectious disease that affects equines or a global pandemic). These membership and horse registration income; starter levies, sponsorship and other income, but with the need to continue to meet some of its ongoing and committed operational costs. These costs differ from
- to have sufficient resources and flexibility to renew all normal activity and to recover its membership and income generating position as rapidly as possible after such circumstances detailed above.
- to provide adequate funding for current and future projects, such as detailed in the Strategic Plan: From Tokyo 2021 to Paris 2024, assuming that such initiatives cannot be fully funded through annual income. This would include any capital expenditure projects, such as investment in new technology, system support and further IT development
- to ensure that liquid reserves are sufficient to cover certain specific risks as detailed in register.
reserves in the range of six to twelve months defined operating expenditure. Defined operating expenditure includes staff salaries, fixed overhead costs and other operational costs that would continue in a force majeure situation. Whilst this is a wide range the Charity will refine this further as the financial commitments relating to the Strategic Plan and the underwriting of the current IT investment become more certain through the annual budgeting process. However, the Charity believes that the period of six to twelve months would
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**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2021**
give the Charity sufficient flexibility in the short to medium term and would enable any longer-term decisions to be made in the best interests of its members and staff.
The financial outcome for 2021 was strong, closing with free financial reserves of £2.5million, representing about 8 months of operating costs, and cash and cash equivalents of £2.6 million. Given this strong closing financial position, the resilience in recovery of major income streams and the prudent approach to future financial planning, the Board considers that it is appropriate for the financial statements to be prepared using the going concern basis.
## **Investment Policy:**
The charity aims to promote the sport of dressage and provide opportunities and training for its members as a priority. In 2020 the Board had begun to introduce an investment policy to ensure that the best choices for its long term reserves were made whilst still maintaining the overall objective of achieving the maximum returns possible, but with appropriate security and liquidity.
The tender process was completed in 2021 with Brewin Dolphin being appointed Managers, and agreed investment policy.
## **Financial Overview:**
Overall, British Dressage achieved total income of £4.17 million which after expenditure delivered a net income of £188,706 in the year, bringing its total reserves to £2.50 million.
## **Funds held as Custodian Trustee on behalf of others:**
Neither the Charity nor any of its Trustees acted as custodian trustees or held funds or property on behalf of another charity during the year.
## **Post Balance Sheet Events**
## **Invasion of Ukraine and sanctions against Russia**
On 24 February 2022 Russian forces invaded Ukraine, resulting in the United Kingdom and other Western Nations announcing the imposition of severe sanctions against Russia and Russian interests worldwide.
British Dressage does not operate in either Ukraine or Russia and no donors or suppliers are located in either of these countries. The Board of Trustees' assessment of this highly tragic geopolitical situation on the Charity is that it has not been directly impacted. However, the effect of sanctions on commodity prices and greater global economic instability more generally may have an indirect impact on the Group over the medium term. The Board of Trustees will therefore continue to keep this situation under review.
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**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Financial Statements:**
The financial statements have been prepared in accordance with the accounting policies set out in the notes to the financial statements and comply with th
and reporting by Charities: Statement of Recommended Practice (October 2019) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland.
Each of the trustees and directors have confirmed that they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor.
This report has been prepared in accordance with the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (Charities SORP (FRS102)) and in accordance with the provisions applicable to companies entitled to smaller companies exemption.
Signed on behalf of the board of Trustees
Mrs C M Godfrey Director
Date: 2 August 2022
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## **BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF RESPONSIBILITIES OF THE TRUSTEES IN RESPECT OF THE**
with applicable law and regulations.
Company law requires the trustees to prepare financial statements for each financial year. Under that law they are required to prepare the group and parent company financial statements in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ .
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 group and charitable company and of the excess of income over expenditure for that period. In preparing each of the group and charitable company financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- assess the ntinue as a going concern, disclosing, as applicable, matters related to going concern; and
- use the going concern basis of accounting unless they either intend to liquidate the group or the charitable company or to cease operations, or have no realistic alternative but to do so.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the group and to prevent and detect fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included financial statements may differ from legislation in other jurisdictions.
The Trustees who held office at the date of approval of this annual report, as set out above, each confirm that:
- so far as they are aware, there is no relevant audit information (information required by the Charity's auditor in connection with preparing their report) of which the Charity's auditors are unaware; and
- as the directors of the Charity the Trustees have taken all the steps they ought to have taken in order to make themselves aware of any relevant audit information and to establish that the Charity's auditors are aware of that information; and
- these financial statements have been drawn up in accordance with current statutory requirements and the "Statement of Recommended Practice: Accounting and Reporting by Charities", published by the Charity Commission for England and Wales in 2019.
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**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE)**
## **DRESSAGE**
## **Opinion**
We have audited the for the year ended 31 December 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheet, the Consolidated Cash Flow Statement 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 FRS 102 Accepted Accounting Practice).
In our opinion, the financial statements:
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **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 describ
of the financial statements section of our report. We are independent of the group and the parent charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, 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**
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 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 other information comprises the information included in the Annual Report, other than the financial 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.
In connection with our audit of the financial statements, 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 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
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**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE)**
## **DRESSAGE**
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:
- purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- applicable legal requirements.
## **Matters on which we are required to report by exception**
In light of the knowledge and understanding of the group and parent charity and its environment obtained in the
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:
- adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit; or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies Strategic Report.
## **Responsibilities of Trustees**
As expla 11, 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 preparin 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 parent charity or to cease operations, or have no realistic alternative but to do so.
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**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE)**
## **DRESSAGE**
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 au 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 the 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. Based on our understanding of the group and parent charity and its activities, we identified that the principal risks of non-compliance with laws and regulations related to the Charities Act 2011, the Charities Statement of Recommended Practice, UK tax legislation, pensions legislation, employment regulation and health and safety regulation, anti-bribery, corruption and fraud, money laundering, non-compliance with implementation of government support schemes relating to COVID-19, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006.
fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to use of restricted funds, and significant one-off or unusual transactions.
Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:
- Discussing with the trustees and management their policies and procedures regarding compliance with laws and regulations;
- Communicating identified laws and regulations throughout our engagement team and remaining alert to any indications of non-compliance throughout our audit; and
- Considering the risk of acts by the group and parent charity which were contrary to applicable laws and regulations, including fraud.
- Our audit procedures in relation to fraud included but were not limited to:
- Making enquiries of the trustees and management on whether they had knowledge of any actual, suspected or alleged fraud;
- Gaining an understanding of the internal controls established to mitigate risks related to fraud;
- Discussing amongst the engagement team the risks of fraud; and
- Addressing the risks of fraud through management override of controls by performing journal entry testing.
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
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**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE)**
## **DRESSAGE**
A further description of our responsibilities for the audit of the financial statements is located on the Financial www.frc.org.uk/auditorsresponsibilities. This description forms part of our report.
## **Use of the audit report**
Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the group and purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the group and parent ch
report, or for the opinions we have formed.
## **Ian Holder (Senior Statutory Auditor)**
for and on behalf of Mazars LLP
Chartered Accountants and Statutory Auditor
First Floor
Two Chamberlain Square Birmingham B3 3AX
> Date: 22 August 2022
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## **BRITISH DRESSAGE**
## **(A COMPANY LIMITED BY GUARANTEE Registered in England & Wales No. 3443026) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATION AN INCOME AND EXPENDITURE ACCOUNT) AS AT 31 DECEMBER 2021**
|**_Notes_**
**Unrestricted**
**Fund**
**2021**
**Restricted**
**Fund**
**2021**
**Total**
**2021**
**INCOME**
**Income from:**
Other trading activities
313,664
313,664
Investments
1
3,170
3,170
Other including Government
Coronavirus Job Retention
Scheme Grants
30,606
30,606
**Charitable activities:**
Membership Subscriptions
1,257,106
1,257,106
Horse Registrations
807,068
807,068
Training & Education
613,642
68,331
681,973
Affiliated Competitions
209,649
209,649
Championships (including U21
International Championships)
668,440
668,440
Other Sponsorship
51,395
51,395
Other Participant
13,403
13,403
Gift Aid
125,740
125,740
**Total income**
**4,093,883**
**68,331**
**4,162,214**
**Expenditure on:**
Raising funds
153,285
153,285
Charitable Activities
3,777,056
44,781
3,821,837
**Total expenditure**
2
**3,930,341**
**44,781**
**3,975,122**
**Net movement in funds before**
**gains**
**163,542**
**23,550**
**187,092**
Unrealised gain on investments
1,614
1,614
**Net movement in funds after**
**gains**
**165,156**
**23,550**
**188,706**
**Reconciliation of funds:**
Total funds brought forward
2,296,699
12,033
2,308,732
________
________
**Total funds carried forward**
**2,461,855**
**35,583**
**2,497,438**|**Total**
**2020**
268,322
8,059
155,322
1,151,444
684,275
677,173
136,463
225,572
9,964
12,102
91,037
|
|---|---|
||3,419,732|
||165,970
3,168,596
3,334,566
85,166
85,166
2,223,566
2,308,732|
All of the results relate to continuing activities and include all gains and losses recognised.
The notes on pages 19 to 34 form part of these financial statements.
16
## **BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE Registered in England & Wales No. 3443026) CONSOLIDATED AND CHARITY BALANCE SHEETS AS AT 31 DECEMBER 2021**
|**Group**
**2021**
**_Notes_**
**£**
**Fixed assets**
Tangible assets
4
14,799
Intangible assets
5
162,086
Investments
6
485,902
**662,787**
**Current assets**
Stock
7
9,410
Debtors
8
488,273
Cash at Bank and in hand
144,119
Term deposits
9
2,449,956
**3,091,758**
**Current liabilities**
Creditors due within one
year
10
**(1,257,107)**
**NET CURRENT ASSETS**
**1,834,651**
**TOTAL ASSETS LESS**
**CURRENT LIABILITIES**
**2,497,438**
**NET ASSETS**
**2,497,438**
**REPRESENTED BY**
11
Restricted funds
**35,583**
Unrestricted funds
**2,461,855**
Total funds
**2,497,438**|**Group**
**2021**
**_Notes_**
**£**
**Fixed assets**
Tangible assets
4
14,799
Intangible assets
5
162,086
Investments
6
485,902
**662,787**
**Current assets**
Stock
7
9,410
Debtors
8
488,273
Cash at Bank and in hand
144,119
Term deposits
9
2,449,956
**3,091,758**
**Current liabilities**
Creditors due within one
year
10
**(1,257,107)**
**NET CURRENT ASSETS**
**1,834,651**
**TOTAL ASSETS LESS**
**CURRENT LIABILITIES**
**2,497,438**
**NET ASSETS**
**2,497,438**
**REPRESENTED BY**
11
Restricted funds
**35,583**
Unrestricted funds
**2,461,855**
Total funds
**2,497,438**|**Charity**
2020
**2021**
£
**£**
14,134
14,799
316,510
162,086
-
486,002
330,644
**662,887**
10,135
-
343,483
436,420
107,827
54,912
2,688,882
2,449,956
3,150,328
**2,941,288**
(1,172,239)
**(1,222,391)**
1,978,088
**1,718,897**
2,308,732
**2,381,784**
2,308,732
**2,381,784**
12,033
**35,383**
2,296,699
**2,346,401**
2,308,732
**2,381,784**|**Charity**
2020
**2021**
£
**£**
14,134
14,799
316,510
162,086
-
486,002
330,644
**662,887**
10,135
-
343,483
436,420
107,827
54,912
2,688,882
2,449,956
3,150,328
**2,941,288**
(1,172,239)
**(1,222,391)**
1,978,088
**1,718,897**
2,308,732
**2,381,784**
2,308,732
**2,381,784**
12,033
**35,383**
2,296,699
**2,346,401**
2,308,732
**2,381,784**|
|2020
£
14,134
316,510
100
330,744
-
361,656
21,386
2,688,882
3,071,924
(1,182,304)
1,889,620
2,220,364
2,220,364
12,033
2,208,331
2,220,364|
|---|---|---|---|---|---|
|||||
||
||
|
|
|
||
|||||||
The individual charity generated a surplus of £73,051 during the year ended 31 December 2021 (2020: deficit £3,203).
The financial statements have been prepared in accordance with the provisions applicable to companies' subject to the small companies' regime under the Companies Act 2006 and with the Financial Reporting Standard applicable in the UK and Republic of Ireland (Charities SORP (FRS102)). The financial statements were approved by the board and authorised for issue on 2 August 2022. and are signed on its behalf by:
Mrs C M GODFREY } } Directors Mrs S HOMEWOOD }
17
## **BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) CONSOLIDATED STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 DECEMBER 2021**
|**GROUP CASH FLOW**
**Cash flows from operating activities:**
**Net income for the reporting period (as per the**
**statement of financial activities)**
**Adjustments for:**
Depreciation charges
Unrealised gain on fixed asset investments
Amortisation of intangible fixed assets
Decrease in stocks
(Increase) in debtors
(Decrease)/Increase in creditors
**Net cash provided by operating activities**
**Cash flows from investing activities:**
Purchase of fixed assets
Purchase of intangible fixed assets
Purchase of fixed asset investments
Investment in short term deposits
**Net cash used in investing activities:**
**Change in cash and cash equivalents in the reporting**
**period**
**Cash and cash equivalents at the beginning of the**
**reporting period**
**Cash and cash equivalents at the end of the reporting**
**period**
**Analysis of changes in net debt**
As at 1 Jan 2020
£
Cash and cash equivalents
107,827
**107,827**|**GROUP CASH FLOW**
**Cash flows from operating activities:**
**Net income for the reporting period (as per the**
**statement of financial activities)**
**Adjustments for:**
Depreciation charges
Unrealised gain on fixed asset investments
Amortisation of intangible fixed assets
Decrease in stocks
(Increase) in debtors
(Decrease)/Increase in creditors
**Net cash provided by operating activities**
**Cash flows from investing activities:**
Purchase of fixed assets
Purchase of intangible fixed assets
Purchase of fixed asset investments
Investment in short term deposits
**Net cash used in investing activities:**
**Change in cash and cash equivalents in the reporting**
**period**
**Cash and cash equivalents at the beginning of the**
**reporting period**
**Cash and cash equivalents at the end of the reporting**
**period**
**Analysis of changes in net debt**
As at 1 Jan 2020
£
Cash and cash equivalents
107,827
**107,827**|
|**2021**
**2020**
£
£
188,706
85,166
7,133
7,494
(1,614)
-
184,857
161,098
726
60
(144,791)
(147,291)
84,868
(50,606)
319,885
55,921
(7,798)
(4,001)
(30,433)
(120,808)
(484,288)
-
238,926
(129,780)
(283,593)
(254,589)
36,292
(198,668)
107,827
306,495
________
________
144,119
107,827
Cashflows
As at 31 Dec 2021
£
£
36,292
144,119|**2021**
**2020**
£
£
188,706
85,166
7,133
7,494
(1,614)
-
184,857
161,098
726
60
(144,791)
(147,291)
84,868
(50,606)
319,885
55,921
(7,798)
(4,001)
(30,433)
(120,808)
(484,288)
-
238,926
(129,780)
(283,593)
(254,589)
36,292
(198,668)
107,827
306,495
________
________
144,119
107,827
Cashflows
As at 31 Dec 2021
£
£
36,292
144,119|
|---|---|---|---|---|
||||||
||**107,827**||**36,292**|**144,119**|
18
**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) ACCOUNTING POLICIES**
## **ACCOUNTING POLICIES**
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
## **BASIS OF PREPARATION**
These accounts 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 102 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), effective for periods commencing 1 January 2020, and the Companies Act 2006).
The policies applied under the entity's previous accounting framework are not materially different to the triennial review of FRS 102 and have not impacted on the net movement in funds and total funds.
## **PUBLIC BENEFIT ENTITY**
The charitable company meets the definition of a public benefit entity under FRS 102.
## **GOING CONCERN**
The trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern. Financial forecasts and budgets are prepared and reviewed regularly by the Finance and Business Development Committee and by the Board, and in the light of the COVID-19 pandemic and the current geopolitical situation in Ukraine and Russia all income streams and costs are subject to ongoing review.
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.
## **GROUP FINANCIAL STATEMENTS**
These financial statements consolidate the results of the charity and its wholly owned subsidiary British Dressage Trading Limited on a line-by-line basis. A separate statement of financial activities for the charitable company has not been presented as permitted by Section 408 of the Companies Act 2006.
## **INVESTMENTS**
Investments are a form of basic financial instrument. Fixed asset investments are initially recognised at their transaction value and are subsequently measured at their fair value (market value) as at the balance sheet date. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year Quoted stocks and shares are included in the Balance Sheet at the current market value quoted by the investment analyst, excluding dividend.
Investments in subsidiaries are stated at cost, less any provision for impairment.
## **DEPRECIATION**
Depreciation is provided on all tangible fixed assets at rates calculated to write each asset down to its estimated residual value evenly over its expected useful life, as follows:
|Office refurbishments|- 16 percent per annum|
|---|---|
|Office equipment|- 25 percent per annum|
|Furniture, fixtures and fittings|- 25 percent per annum|
## **AMORTISATION**
Amortisation is provided on all intangible fixed assets at rates calculated to write each asset down to its estimated residual value evenly over its expected useful life, as follows:
Computer software and website development costs - 33 50 percent per annum
19
**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) ACCOUNTING POLICIES**
## **STOCKS**
Stocks are valued at the lower of cost and net realisable value. Cost is computed on a first in first out basis. Net realisable value is based on estimated selling price less the estimated cost of disposal.
## **INCOME**
ordinary activities stated net of value added tax.
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Income tax in relation to donations received under gift aid or deed of covenant is recognised at the time of the donation.
Lifetime memberships received are allocated over a 10 year period. Annual membership income is allocated to a twelve month period based on the timing of receipt of membership in the month.
## **EXPENDITURE AND IRRECOVERABLE VAT**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party. It is probable that a transfer of economic benefit will be required in settlement and the amount of settlement can be measured reliably.
Costs of raising funds are costs incurred in attracting income and those incurred in trading activities that raise funds. to governance of the Charity. Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred, either directly or indirectly by the allocation of support costs.
## **FUNDS**
General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the company and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restriction by donors or which have been raised by the company for particular purposes. The cost of raising and administering such funds are charged against the specific funds. The aim and use of each restricted fund is set out in the notes to the financial statements.
## **GRANTS**
All grants are credited to income in the period to which they relate. In the year ended 31 December 2021 grants from the UK G Job Retention Scheme, (instigated due to the coronavirus pandemic), were received and disclosed as other income.
## **LEASES**
Operating lease rentals are charged to the statement of financial activities on a straight line basis over the period of the lease.
## **CASH**
Cash, for the purposes of the statement of cash flows, comprises cash in hand and deposits repayable on demand, less overdrafts repayable on demand.
## **LIABILITIES**
Liabilities are amounts due to creditors and any provision made as a result of an obligation to transfer economic benefits, usually in the form of a cash payment, to a third party. Liabilities are measured at the settlement amount. A liability is recognised for the amount that the charity anticipates it will pay to settle the debt or the amount it has received as an advanced payment for goods or services it must provide.
20
**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) ACCOUNTING POLICIES**
## **DEFINED CONTRIBUTION PENSION SCHEME**
Contributions are charged to the statement of financial activities as they become payable in accordance with the rules of the scheme. Both the charity and the employee make contributions to the employee s individual pension. All such contributions are held in separate funds which are independent to the finances.
## **TAXATION**
British Dressage is a registered Charity and is thus exempt from taxation of its income and gains falling within Section 505 of the Income and Corporation Taxes Act 1988 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that they are applied to its charitable objectives. No tax charges have arisen in the year. No tax charge has arisen in the trading subsidiary, British Dressage Trading Limited, due to their policy of gifting all their taxable profits to British Dressage each year.
## **CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT**
The preparation of the financial statements requires management to make significant judgements and estimates. The areas where these judgements and estimates have been made include:
## Trade debtors and other debtors
Trade debtors and other debtors consists of amounts due from external organisations and individuals including customers. An allowance for doubtful debt will be maintained for any estimated losses resulting from the viability of these external organisations and individuals to make the required payments. Any allowance is based on the group s regular assessment of the credit worthiness and financial conditions for those external parties included within trade debtor balances.
## Depreciation, amortisation and residual values
The directors have reviewed the asset lives and associated residual values of all fixed tangible assets and intangible assets, and in particular, the useful economic lives and residual values of office refurbishment assets, office equipment, furniture, fixtures and fittings and software, and have concluded that the asset lives and residual values are appropriate.
## **FINANCIAL INSTRUMENTS**
Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost. Financial assets held at amortised cost comprise cash at bank and in hand, together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant access bank accounts and used as working capital. Financial liabilities held at amortised cost comprise all creditors except social security and other taxes and provisions.
21
**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
**----- Start of picture text -----**
2021 2020
£ £
1 INVESTMENT INCOME
Bank interest receivable 1,831 8,059
Dividends receivable 1,339
3,170 8,059
2 EXPENDITURE
DIRECT COSTS
Trading activities 150,977 164,087
Member and Horse 193,707 133,640
Training and Education 560,995 751,281
Affiliated competitions 32,101 30,523
Championships (including U21 International 439,726
1,107,746
Championships)
Staff costs 959,504 950,485
BEF Funding 65,580 67,820
Marketing and promotion 62,505 40,475
3,133,115 2,578,037
SUPPORT OVERHEADS
Salaries and wages 164,121 164,903
Staff expenses 8,563 8,282
Rent, rates, service & maintenance 69,106 68,763
Office sundries 1,266 1,263
Computer and machine maintenance and support 138,340 137,003
Telephone 14,354 6,545
Printing and stationery 13,414 6,079
Postage 6,931 13,108
Meetings 2,229 1,700
Bad debts (942) 7,505
Legal and professional 18,297 10,304
Depreciation 191,990 168,592
Asset disposal (125) -
Irrecoverable VAT 115,963 88,860
Bank and other charges 67,890 49,663
811,397 732,570
GOVERNANCE COSTS
Directors costs 9,907 4,124
13,830 12,930
Board meeting costs 6,873 6,905
30,610 23,959
________
Total expenditure 3,975,122 3,334,566
________
**----- End of picture text -----**
22
**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
Direct costs and support overheads are split based on actual expenditure. Governance costs are split based on the income ratio.
||||||||||2021|2020|
|---|---|---|---|---|---|---|---|---|---|---|
||||||||||£|£|
|Trading & publications|||||||||7.54%|7.86%|
|Charitable activities|||||||||92.46%|92.14%|
|**31 December 2021**|||||Direct costs|||Support|Governance|Total|
|||||||||Overheads|||
||||||£|||£|£|£|
|Trading & publications|||||150,977|||-|2,308|153,285|
|Charitable activities|||||2,982,138|||811,397|28,302|3,821,837|
||||||3,133,115|||811,397|30,610|3,975,122|
|**31 December 2020**|||||Direct costs|||Support|Governance|Total|
|||||||||Overheads|||
||||||£|||£|£|£|
|Trading & publications|||||164,087|||-|1,883|165,970|
|Charitable activities|||||2,413,951|||732,569|22,076|3,168,596|
||||||2,578,038|||732,569|23,958|3,334,566|
|3
RESULT FOR THE YEAR|||||||||**2021**
|**2020**|
||||||||||£
|£|
|The result for the year is stated after charging:|||||||||||
|Auditors remuneration:|||||||||||
|Fees|||||||||11,250|10,500|
|British Dressage accounts|||||||||||
||||||||||2,580|3,455|
|relating to taxation|||||||||||
||||||||||84,571|94,125|
|Operating lease rentals:|||||||||||
|Land and buildings:|||||||||||
|Office rental|||||||||36,708|38,384|
|Office service charge|||||||||18,553|17,028|
|Storeroom rental|||||||||2,050|2,050|
|Plant and machinery:|||||||||||
|Photocopier|||||||||996|994|
|Pool|cars||||||||5,219|5,218|
|Depreciation of tangible fixed assets:|||||||||||
|Owned assets|||||||||7,133|7,494|
|Profit on disposal of fixed assets|||||||||125|-|
|Amortisation of intangible fixed assets:|||||||||||
|Owned assets|||||||||184,857|161,098|
23
**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## 4 TANGIBLE FIXED ASSETS GROUP AND CHARITY
|Office
Office
Furniture
Refurbishment
Equipment
and
Fixtures
1 January 2021
£
£
£
26,837
84,869
37,602
Additions
-
7,798
-
Disposals
-
-
-
31 December 2021
26,837
92,667
37,602
Depreciation
1 January 2021
26,837
70,740
37,597
Charge for the year
-
7,128
5
Disposals
-
-
-
31 December 2021
26,837
77,868
37,602
Net book amount
31 December 2021
-
14,799
-
31 December 2020
-
14,129
5|Total
£
149,308
7,798
-|
|---|---|
||157,105|
||135,174
7,133
-|
||142.307|
||14,799|
||14,134|
All tangible fixed assets owned by the charity are used for direct charitable purposes. Depreciation is charged against charitable activities.
24
**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
|5
INTANGIBLE FIXED ASSETS
GROUP AND CHARITY
1 January 2021
Additions
Disposals
31 December 2021
Amortisation
1 January 2021
Charge for the year
Disposals
31 December 2021
Net book amount
31 December 2021
31 December 2020
|Software
£
631,710
30,433
662,143
315,200
184,857
-
500,057
162,086
316,510|Total
£
631,710
30,433
|
|---|---|---|
|||662,143
|
|||315,200
184,857
-
|
|||500,057
|
|||162,086
316,510|
All intangible fixed assets are specifically developed for the charity and are used or intended for use for direct charitable purposes. Amortisation is charged against charitable activities
25
**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## 6 FIXED ASSETS INVESTMENTS
|Brought forward at 1 January 2021
Additions in the year
Unrealised gain during year
Valuation at 31 December 2021
Cost at 31 December 2021
Breakdown of portfolio of investments held with Brewin
Dolphin
UK Bonds
Overseas Bonds
UK Equities
Overseas Equities
Global Investments
Absolute Return
Property
Commodities
Other investments
Total
British Dressage Trading Limited (wholly owned
subsidiary) (see note 18)
H & C TV Ltd
Total valuation at 31 December 2021
|Group
£
-
484,288
1,614
485,902
484,288
14,592
95,945
87,349
187,742
12,981
49,651
15,276
7,710
14,640
485,886
-
16
485,902
|Charity
£
100
484,288
1,614
|
|---|---|---|
|||486,002
|
|||484,388
|
|||14,592
95,945
87,349
187,742
12,981
49,651
15,276
7,710
14,640
|
|||485,886
|
|||100
16
|
|||486,002
|
managed by Brewin Dolphin.
26
**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
|7
STOCKS
Goods for resale
8
DEBTORS: amounts falling due within one year
Trade debtors
Other debtors
Amount due from subsidiary
Prepayments and accrued income
Taxation & social security
9
CURRENT ASSET INVESTMENTS
Fixed Term Deposits
10
CREDITORS: amounts falling due within one year
Trade creditors
Other creditors
Taxation and social security
Accruals
Deferred membership, sponsorship and other
income
Deferred income reconciliation
Brought forward at 1 January
Deferred income released in year
Deferred income received in year
Carried forward at 31 December|**Group**
**2021**
**2020**
**£**
**£**
9,410
10,135
**Group**
**2021**
**2020**
**£**
**£**
191,654
169,024
165,807
108,222
-
-
117,905
66,237
12,908
-
488,274
343,483
**Group**
**2021**
**2020**
**£**
**£**
2,449,956
2,688,882
**Group**
**2021**
**2020**
£
£
177,489
86,643
27,767
5,504
46,931
52,722
80,142
98,142
924,778
929,228
1,257,107
1,172,239
929,228
971,869
(909,115)
(958,184)
904,665
915,543
924,778
929,228|**Charity**
**2021**
**2020**
**£**
**£**
-
-
**Charity**
**2021**
**2020**
**£**
**£**
171,450
166,898
128,700
107,624
19,883
20,896
116,387
66,238
-
-
436,420
361,656
**Charity**
**2021**
**2020**
**£**
**£**
2,449,956
2,688,882
**Charity**
**2021**
**2020**
£
£
170,066
101,711
27,767
501
46,931
52,722
63,443
98,142
914,184
929,228
1,222,391
1,182,304
929,228
960,869
(909,115)
(947,184)
894,071
915,543
914,184
929,228|**Charity**
**2021**
**2020**
**£**
**£**
-
-
**Charity**
**2021**
**2020**
**£**
**£**
171,450
166,898
128,700
107,624
19,883
20,896
116,387
66,238
-
-
436,420
361,656
**Charity**
**2021**
**2020**
**£**
**£**
2,449,956
2,688,882
**Charity**
**2021**
**2020**
£
£
170,066
101,711
27,767
501
46,931
52,722
63,443
98,142
914,184
929,228
1,222,391
1,182,304
929,228
960,869
(909,115)
(947,184)
894,071
915,543
914,184
929,228|**Charity**
**2021**
**2020**
**£**
**£**
-
-
**Charity**
**2021**
**2020**
**£**
**£**
171,450
166,898
128,700
107,624
19,883
20,896
116,387
66,238
-
-
436,420
361,656
**Charity**
**2021**
**2020**
**£**
**£**
2,449,956
2,688,882
**Charity**
**2021**
**2020**
£
£
170,066
101,711
27,767
501
46,931
52,722
63,443
98,142
914,184
929,228
1,222,391
1,182,304
929,228
960,869
(909,115)
(947,184)
894,071
915,543
914,184
929,228|**Charity**
**2021**
**2020**
**£**
**£**
-
-
**Charity**
**2021**
**2020**
**£**
**£**
171,450
166,898
128,700
107,624
19,883
20,896
116,387
66,238
-
-
436,420
361,656
**Charity**
**2021**
**2020**
**£**
**£**
2,449,956
2,688,882
**Charity**
**2021**
**2020**
£
£
170,066
101,711
27,767
501
46,931
52,722
63,443
98,142
914,184
929,228
1,222,391
1,182,304
929,228
960,869
(909,115)
(947,184)
894,071
915,543
914,184
929,228|
|---|---|---|---|---|---|
|||
||||
|||||||
||||||929,228|
27
**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
|11
FUND BALANCES 2021
Unrestricted
**2021**
Restricted
**2021**
£
£
Tangible and Intangible fixed assets
176,885
-
Investments
485,902
-
Cash at bank and in hand
108,536
35,583
Term deposits
2,449,956
-
Other current assets
497,684
-
Creditors
(1,257,107)
-
_______
31 December
2,461,855
35,583
MOVEMENT of FUNDS 2021
1 January
2,296,699
12,033
Income
4,093,883
68,331
Expenditure
(3,930,341)
(44,781)
Unrealised gain on investments
1,614
-
31 December
2,461,855
35,583
RESTRICTED FUNDS 2021
1 Jan 2021
Income
Expenditure
31
£
£
£
Saddlers grant
2,950
-
-
Donation
9,083
35,000
(29,154)
Excel Talent Fund
-
15,086
(11,877)
Sport England
-
18,245
(3,750)
________
________
________
Total
12,033
68,331
(44,781)
________
________
________|Total Fund
**2021**
£
176,885
485,902
144,119
2,449,956
497,685
(1,257,107)
2,497,438
2,308,732
4,162,214
(3,975,122)
1,614
2,497,438
Dec 2021
£
2,950
14,929
3,209
14,495
________
35,583
________|
|---|---|
A summary of the fund is further explained in the Accounting policies on page 18. The purposes of the 2021 restricted funds are as follows:-
Saddlers grant Contribution to the Young Professionals Programme and support for Dressage Academies
Donation Dressage Academies
Excel Talent fund, Sport England Dressage Academies
28
**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
|FUND BALANCES 2020||Unrestricted|Restricted|Total Fund|
|---|---|---|---|---|
|||**2020**|**2020**|**2020**|
|||£|£|£|
|Tangible and Intangible fixed assets||330,644|-|330,644|
|Cash at bank and in hand||95,794|12,033|107,827|
|Term deposits||2,688,882|-|2,688,882|
|Other current assets||353,618|-|353,618|
|Creditors||(1,172,239)|-|(1,172,239)|
|||_______|||
|31 December||2,296,699|12,033|2,308,732|
|MOVEMENT of FUNDS 2020|||||
|1 January||2,193,014|30,552|2,223,566|
|Income||3,407,420|12,312|3,419,732|
|Expenditure||(3,303,735)
|(30,831)
|(3,334,566)
|
|31 December||2,296,699|12,033|2,308,732|
|RESTRICTED FUNDS 2020|1 Jan 2020|Income|Expenditure|31 Dec 2020|
|Saddlers grant|2,000|1,000|50|2,950|
|Donation
|19,083|-|10,00
o|9,083|
|Excel Talent fund|9,469|
-|9,469|-|
|Sport England
|-|11,312|11,312|-|
||________|________|_______|________|
||30,552|12,312|30,831|12,033|
> 12 LEGAL STATUS OF THE CHARITY
British Dressage is a company limited by guarantee, not having share capital. In the event of the company being wound up, the liability of each member is limited to £1. At 31 December 2021 there were 17,446 members. (2020 15,273)
29
**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## 13 FINANCIAL COMMITMENTS
At 31 December 2021 the group and the charity had future minimum lease payments under non-cancellable operating leases as follows:
|operating leases as follows:|||
|---|---|---|
||2021|2020|
||£|£|
|Land and buildings: Rent|||
|Not later than one year|36,708|36,708|
|Between two to five years|146,832|146,832|
|Later than five years|73,416|110,124|
|Land and buildings: Service charge|||
|Not later than one year|18,553|18,553|
|Between two to five years|74,212|74,212|
|Later than five years|37,106|55,599|
|Plant and machinery|||
|Not later than one year|2,909
|5,219|
|Between two to five years|2,490
|1,740|
|Later than five years|-|-|
The group and the charity had no future capital commitments at 31 December 2021 (2020: £ nil).
30
**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## 14 RELATED PARTY TRANSACTIONS
During the year ended 31 December 2021 the following fees and expenses were paid to the trustees:-
||Trustees|Judge/Training|Total|Amount due to|
|---|---|---|---|---|
||Expenses|Fees/Accounts||trustees as at 31|
||Mileage,|preparation||December 2021|
||flights,||||
||subsistence||||
||£|£|£|£|
|S Bates|-|-|-|-|
|J Frizzell|771|-|771|-|
|C M Godfrey|297|3,000|3,297|-|
|J Harvey|1,575|-|1,575|-|
|P Hayler|-|789|789|-|
|S Homewood|380|-|380|-|
|C Moir|465|5,106|5,572|160|
|P Storr|68|9,318|9,386|3,983|
|L Whetstone|130|-|130|-|
|H Payne|188|4,781|4,969|1,224|
|T Ormerod|158|-|158|-|
The payment to CM Godfrey was an exceptional and one-off payment (approved by the Chair (Linda Whetstone) and Chief Executive) for the preparation of the annual accounts and liaison with the auditors at very short notice following the resignation of the Chief Finance Officer.
No trustee received any other remuneration including pension benefits from the charity during the year. The charity considers the trustees to be key management personnel as disclosed on the reference and administration page.
During the period from the date of appointment, British Dressage Trading Limited received £3,991 for commission on the sale of Dressage Test Pro from Lion Dog Apps Limited. A company in which T Ormerod has significant control. These transactions have been done on at arms length basis.
There are no donations or restricted donations from related parties.
## **Trustee Indemnity Insurance**
Trustee Indemnity Insurance cover amounted to a limit of £2million in 2021 at a cost of £2,466 (2020: £2 million at a cost of £2,117)
31
**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
|15
STAFF COSTS
Wages and salaries
Recruitment costs
Social Security costs
Pension costs
Other costs and employee benefits
|2021
£
1,006,172
9,900
90,143
84,571
9,699
1,200,485|2020
£
1,166,631
-
102,689
94,125
12,371
|
|---|---|---|
|||1,375,816|
The charity contributes to a defined contribution pension scheme. The scheme assets are held separately from those of the charity in an independently administered fund. The pension cost charge above represents contributions payable by the group and the charity to the fund. There were no outstanding contributions due to the fund at 31 December 2021 (2020: nil).
Other costs and employee benefits include health and insurance benefits and recruitment expenses.
The total remuneration paid to Key Management personnel made up of Chief Executive Office, Chief Operating Officer and Chief Financial Officer, including benefits and employer pension contributions amounted to £230,433 in 2021 (2020: £173,319)
The number of employees whose emoluments as defined for taxation purposes amounted to more than £60,000 in the year were as follows:
||2021|2020|
|---|---|---|
||Number|Number|
|£100,001 - £110,000|1|1|
|£60,001 - £70,000|1|1|
Pension contributions for the above amounted to 2021 £16,528 (2020: £13,981)
The average number of employees calculated on an average basis analysed by function was:
||2021|2020|
|---|---|---|
||Number|Number|
|Charitable activities|34|37|
|Cost of raising funds|2|2|
32
**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## 16 POST BALANCE SHEET EVENTS
## **Invasion of Ukraine and sanctions against Russia**
On 24 February 2022 Russian forces invaded Ukraine, resulting in the United Kingdom and other Western Nations announcing the imposition of severe sanctions against Russia and Russian interests worldwide.
British Dressage does not operate in either Ukraine or Russia and no donors or suppliers are located in either of these countries. The Board of Trustees' assessment of this highly tragic geopolitical situation on the Charity is that it has not been directly impacted. However, the effect of sanctions on commodity prices and greater global economic instability more generally may have an indirect impact on the Group over the medium term. The Board of Trustees will therefore continue to keep this situation under review.
33
**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## 17 SUBSIDIARY COMPANY
British Dressage Trading Limited, company registered in England & Wales number 08712159, is a wholly owned subsidiary of British Dressage. British Dressage Trading undertakes the trading activities of the charity and gift aids its taxable profits to the charity. The trading results of the subsidiary are included in the consolidated accounts. The audited results for the subsidiary are as follows:
|TURNOVER
Direct costs
GROSS RESULT
Administrative expenses
RESULT ON ORDINARY ACTIVITIES BEFORE
TAXATION
Taxation for the year
RESULT ON ORDINARY ACTIVITIES AFTER
TAXATION
PROFIT FOR THE FINANCIAL YEAR
**The aggregate of assets, liabilities and fund:**
Assets
Liabilities
Funds|**2021**
£
232,978
(80,602)
152,376
(36,721)
115,656
-
115,656
115,656
170,355
(54,599)
115,756|**2020**
£
207,215
(78,868)
|
|---|---|---|
|||128,347
(39,978)
88,369
-
88,369
88,369
162,788
(74,319)
|
|||88,469|
34