## **BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE)**
## **ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
**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|2-9|
|Trustees’ responsibilities|10|
|Independent Auditor’s report to the Trustees|11-14|
|Consolidated Statement of Financial Activities|15|
|Consolidated and Charity Balance Sheets|16|
|Consolidated Cash Flow Statement|17|
|Accounting Policies|18-20|
|Notes to the Financial Statements|21-32|
**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 DECEMBER 2022**
## **President:**
Jennie Loriston-Clarke (until 6 October 2022) David Hunt (from 6 October 2022)
**Charity registered number:** 1155352
## **Vice President:**
Desi Dillingham (until 6 October 2022) Stephen Clarke (from 6 October 2022)
**Company registered number:** 3443026
## **Chairman:**
Caroline Godfrey (to 6 October 2022) Jill Day (from 6 October 2022)
**Other Trustees:** Simon Bates Caroline Godfrey Judy Harvey Suzanne Homewood Richard Lane (from 1 January 2023) Tracy Ormrod Harry Payne Peter Storr
## **Registered Office:**
Meriden Business Park Copse Drive Meriden West Midlands CV5 9RG
## **Auditors:**
Mazars LLP First Floor Birmingham B3 3AX
Suzanne Homewood Jill Day (from 6 October 2022) Jason Brautigam
91-93 Regent Street Leamington Spa CV32 4NT
Jason Brautigam
Wright Hassall LLP Olympus Avenue Leamington Spa
**Key Management personnel:** Chief Operating Officer- Ben Waterhouse
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**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2022**
The board of Trustees present their annual report together with the audited financial statements of British Dressage for the year ended 31 December 2022.
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, and 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 2022**
## **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 and integrity, and promoting equality, diversity and inclusivity, teamwork and human and equine welfare, is at the heart of everything that British Dressage does, together with delivering the highest standards of service for all members,.
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 2022**
## **ACHIEVEMENTS AND REVIEW OF 2022**
2022 saw the return to a full year of competition at British Dressage, after two years impacted by lockdowns and reduced opportunities due to COVID-19. Over the course of 2022 British Dressage saw record levels of membership and horse registrations. By the end of the year membership totalled 18,247, with 16,726 horse registrations, both significantly higher than pre-pandemic.
Internationally, our Senior and Para athletes were in the spotlight at the FEI World Dressage Championships in Herning, with both teams successful in their quest to secure qualification for the Paris 2024 Olympics and Paralympics.
The Senior team of Lottie Fry, Charlotte Dujardin, Gareth Hughes, and Richard Davison delivered some personal best performances to take the team silver medal, while Lottie produced two outstanding performances in the Special and Freestyle to become the youngest ever World Champion winning double gold with Glamourdale.
Competition was fierce for our Para team of Sophie Wells, Lee Pearson, Natasha Baker, and Georgia Wilson, who finished just outside of the medal zone in fourth place in the team event, but all four riders still achieved podium places individually, winning a total of seven silver and bronze medals across their respective grades.
In the youth ranks, the British Junior team earned a historic bronze on home turf at the FEI European Championships hosted at Hartpury. Annabella Pidgley then added to this success with individual bronze and Freestyle silver on Espe. There were strong performances across all the age groups in the summer, with the Young Rider team achieving a close fourth place at Hartpury and the Pony team also finishing fourth at the FEI European Championships in Strzegom.
The LeMieux National Dressage Championships returned to Somerford Park after its inaugural event in 2021. The organising team focused on improving the spectator experience, with live scoring being offered in the main arena. World Champion Lottie Fry made a guest appearance at the BD Fan Zone, which also had numerous other special guest appearances from our top riders, including Gareth Hughes, who won the title of National Champion for the first time.
The popularity of our competition series for grass roots riders led to record participation at our autumn championships in 2022. A total of 535 members competing at the Saracen Horse Feeds Quest Championships and 1,261 members at the Cavago Associated Championships, underlining how British Dressage is accessible to all.
The 2022 BD National Convention was once again delivered both in person and online, with on demand coverage available after the event. Online training for judges and officials continues to grow and provide valuable additional resources for the dressage community. The first online assessments as part of the new judge education framework took place in October 2022 and produced an initial pass rate of over 70%.
New bespoke packages for BD coaches were announced in the spring of 2022, with over 200 signed up by the end of the year. These offer tailored support for coaches, including CPD activity and the option of adding professional insurance. The BD Apprenticeship scheme, developed in partnership with Sport Structures, was also launched in August, aiming to better support the training, education, and development of our dressage workforce.
Finances continued to be managed prudently throughout the year, with a further surplus adding to the charity’s reserves. The Board and Senior Management Team are conscious that high inflation had a significant impact on the cost-of-living for everyone and subscription fees were therefore frozen for 2023 at the current levels.
At the AGM the Board also detailed plans to reinvest up to £250,000 of its reserves in targeted Designated Funds to benefit all areas of dressage. A number of projects and initiatives will be instigated in 2023, rolled out over a three-year period.
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**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2022**
After a competitive election process Jill Day was elected as Chairman in October 2022, while Peter Storr and Judy Harvey were re-elected for second terms as Judges Director and International Director respectively. The Board also appointed Richard Lane as an extra director, effective from 1 January 2023, to provide additional legal expertise.
Our long-serving President and Vice President, Jennie Loriston-Clarke and Desi Dillingham, both also former Chairs of British Dressage, retired at the end of their two terms in office and were made Honorary Patrons at the National Convention in November 2022. It was also announced at the same time that David Hunt and Stephen Clarke, two highly respected individuals in the world of dressage, have been appointed as their successors, as President and Vice President respectively.
There is no doubt that the strong performance of British Dressage is due to the outstanding work and commitment of staff, volunteers, and officials, in so many different capacities. In 2022 we were delighted to award BD Medals of Honour to Lynn Lawford and Chris Porterfield, as well as present the inaugural Linda Whetstone Memorial Trophy to Stephen Clarke at the National Championships, recognising the outstanding contributions they have made to our sport.
These presentations were tinged with sadness, however, as we remembered our former Chairs Linda Whetstone and Penny Pollard, who died after a long battle with cancer at the start of 2022. Lynn Lawford also sadly passed away shortly after receiving her award, but we will be eternally grateful for everything that all three achieved on behalf of British Dressage.
The Trustees record their sincere thanks to all those who work so hard and make BD such a success, enabling members of all ages to enjoy dressage, whilst promoting the highest standards of human and equine welfare.
Full details of membership figures, competition activity and notable results in 2022 will be presented in the report of the Chief Executive at the Annual General Meeting.
## **Looking ahead to 2023**
2023 marks the 25th anniversary of British Dressage and the Board is looking forward to marking this exciting milestone in the autumn, at both regional and national level. It is hoped too that 2023 will be a year unaffected by COVID or any other unforeseen crisis, with a full calendar of competition activity planned both nationally and internationally.
The major issue facing British Dressage members in 2023 is the cost-of-living crisis, and the effect that this is having on disposable income. Having reached record levels of members and horses in 2022, we are mindful of the potential impact that high inflation, food, and fuel costs may have on participation. Membership subscriptions and Horse Registration fees for 2023 have therefore been maintained at 2022 levels, as part of our commitment to providing value for money to members, while BD will also support venues through the ongoing subsidy of starter levies.
As part of its charitable objectives, BD will continue to invest significantly in training and education initiatives, building on the foundations of recent projects. The next phase of online assessments under the new judge education framework take place in the spring of 2023, while the full CPD activity programme for coaches will be rolled out through the course of the year. Following a successful launch in the summer of 2022, the British Dressage Apprenticeship Scheme will also have its first full year of operation, supporting the development of our workforce.
At the end of 2022, circa 10% of BD’s reserves were allocated as Designated Funds and a range of projects have been identified to ensure that these funds are reinvested for the benefit of members, venues, and the wider sport itself. These proposals were outlined at the AGM in 2022 and the BD senior management team have prepared detailed plans, with implementation commencing in early 2023.
Some of these projects will continue over a number of years, but it is expected that 2023 will see the initial impact of these reinvested funds across the sport in key areas.
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## **BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2022**
Equine Welfare, Sustainability and Equality, Diversity and Inclusion are three social impact topics that are vitally important for the future, both within and outside of the equestrian community. The BD Board has committed to providing the resources required to support the development of coherent strategies and policies in each of these areas, to uphold the organisation’s stated values and deliver meaningful change.
The following summarises the priorities for British Dressage in 2023:
- Celebrate BD’s 25-year anniversary and involve as many BD members as possible at local and regional level.
- Commence the agreed programme for the reinvestment of Designated Funds to support the development of the sport in key areas.
- Deliver a communication and action plan in response to the BD competitor survey, which was conducted in November 2022.
- Implement the outcomes of working parties reviewing elements of the competition structure.
- Develop and promote development pathways for riders, officials, and coaches, to deliver effective training and education opportunities at Senior, Para, and Youth level.
- Establish an effective CPD programme for external professional workforce, covering all aspects of judging, stewarding, and coaching to ensure a 360-degree approach to the development of officials.
- Review all equine welfare policies and provide education initiatives to promote best practice in relation to riding, horse care, stable management and the use of tack and equipment.
- Formulate a sustainability strategy and action plan for BD, based on initial internal review and supported by an external consultancy project.
- Instigate a range of Equality, Diversity, and Inclusion (EDI) initiatives to ensure that dressage is inclusive and accessible to all.
- Continued investment in IT systems, including the digitalisation of BD activity and further development of online content.
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**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2022**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
British Dressage (the “charity”) was incorporated on 1 October 1997 as British Dressage Limited and obtained approval on 20 November 1997 to dispense with the word ‘Limited’. British Dressage is a registered charity, having 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 £127,438 which it gift aided to the charity (2021 £115,656).
## **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 five 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 training on any legislative and good practice issues in respect of the charity’s affairs.
## **Remuneration and Expenses**
In accordance with the charity’s Memorandum and Articles of Association, no remuneration is paid to trustees for 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 16 to the accounts. The Trustees are responsible for the remuneration of the charity’s senior management team. Remuneration levels are reviewed annually using appropriate benchmarking for the individual roles.
## **Decision Making**
In accordance with the charity’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 £3,365 for the year ended 31 December 2022 (2021 - £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 remains suitable to protect the charity’s interests
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**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2022**
and activities. The COVID-19 specific risk register which was established in 2020 has now been incorporated into the standard Risk Register for the charity.
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 the Charity’s ability to deliver services
- External Issues such as a global pandemic, which would 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.
## **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 recent 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. The policy was reaffirmed in 2022.
Reserves are required by the Charity to:
- protect the ongoing viability of the charity, particularly at a time of severe adversity, such as a force majeure event (e.g. the outbreak of serious infectious disease that affects equines or a global pandemic). These events may result in a temporary suspension of BD’s normal activities with an immediate loss of 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 full operational costs due to the presumed cessation of activity and BD has chosen to use the term ‘defined operational costs’ to reflect costs which would continue in a force majeure situation.
- 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 the Charity’s risk register.
The Charity’s policy is to maintain free 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 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.
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**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2022**
The financial outcome for 2022 was strong, closing with free financial reserves of £2.66 million; this includes £250,000 which has been allocated as designated funds by the Board. This level of reserves represents circa 8 months of operating costs. The charity holds cash and cash equivalents of £2.7 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 introduced 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.
Brewin Dolphin were appointed in 2021 as the Charity’s Investment Managers, and appropriate investment has begun in conjunction with expert advice and in line with the Charity’s agreed investment policy.
## **Financial Overview:**
Overall, British Dressage achieved total income of £4.83 million which after expenditure delivered a net surplus of £158,920 in the year, bringing total reserves to £2.68 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.
## **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 the charity’s governing document, the Charities Act 2011 and Accounting 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
J DayJ Day (Jun 12, 2023 17:53 GMT+1) Ms J Day Director
Date: 12 June 2023
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**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE)**
## **STATEMENT OF RESPONSIBILITIES OF THE TRUSTEES IN RESPECT OF THE TRUSTEES’ ANNUAL REPORT AND THE FINANCIAL STATEMENTS**
The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance 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 group’s excess of income over expenditure for that period. In preparing each of the group and charitable company financial statements, the trustees are required to:
- observe the methods and principles in the Charities SORP;
- 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 group’s and the charitable company’s ability to continue 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’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are 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 on the charitable company’s website. Legislation in the UK governing the preparation and dissemination of 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) INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF BRITISH DRESSAGE**
## **Opinion**
We have audited the financial statements of British Dressage (the ‘parent charity’) and its subsidiary (the ‘group’) for the year ended 31 December 2022 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 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- give a true and fair view of the state of the group’s and of the parent charity’s affairs as at 31 December 2022 and of the group’s income and expenditure for the year then ended;
- 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 described in the Auditor’s responsibilities for the audit 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, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s and the parent charity’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 other information comprises the information included in the Trustees Report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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 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.
We have nothing to report in this regard.
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## **BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF BRITISH DRESSAGE**
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Trustees’ Report which includes the Directors’ Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Directors’ Report included within the Trustees’ Report has been prepared in accordance with 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 course of the audit, we have not identified material misstatements in the Directors’ Report included within 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:
- 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
- certain disclosures of trustees’ remuneration specified by law are not made; 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 regime and take advantage of the small companies’ exemption from the requirement to prepare a Strategic Report.
## **Responsibilities of Trustees**
As explained more fully in the trustees’ responsibilities statement set out on page 10, 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 group’s and parent charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or parent charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
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 the financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
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.
12
## **BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF BRITISH DRESSAGE**
Based on our understanding of the group and parent charity and its activities, we considered non-compliance with the following laws and regulations might have a material effect on the financial statements: Charities Act 2011, the Charities Statement of Recommended Practice, employment regulation and health and safety regulation, antimoney laundering regulations.
To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
- Inquiring of management and, where appropriate, those charged with governance, as to whether the company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
- Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
- Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
- Considering the risk of acts by the company which were contrary to applicable laws and regulations, including fraud.
We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006.
In addition, we evaluated the Trustees’ and management’s incentives and opportunities for 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 income recognition (which we pinpointed to the cut off assertion) and the use of restricted funds, significant one-off or unusual transactions.
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.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
13
## **BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF BRITISH DRESSAGE**
## **Use of the audit report**
This report is made solely to the group and parent charity’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 group and parent charity’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 group and parent charity and the group and parent charity’s members as a body for our audit work, for this report, or for the opinions we have formed.
David Hoose (Jun 12, 2023 18:03 GMT+1)
**David Hoose**
(Senior Statutory Auditor) for and on behalf of Mazars LLP Chartered Accountants and Statutory Auditor Two Chamberlain Square Birmingham B3 3AX
> Date: Jun 12, 2023
14
## **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 2022**
|**_Notes_**
**INCOME**
**Income from:**
Other trading activities
Investments
1
Other ( including Government
Coronavirus Job Retention
Scheme Grants)
**Charitable activities:**
Membership Subscriptions
Horse Registrations
Training & Education
Affiliated Competitions
Championships (including U21
International Championships)
Other Sponsorship
Other Participant
Gift Aid
**Total income**
**Expenditure on:**
Raising funds
Charitable Activities
**Total expenditure**
2
**Net movement in funds before**
**gains**
(Losses)/gains on investments
(realised & unrealised)
**Net movement in funds after**
**gains**
Transfer between funds
5
**Net movement in funds after**
**transfers**
**Reconciliation of funds:**
Total funds brought forward (as
previously stated)
Prior year adjustments
4
Total funds brought forward (as
restated)
**Total funds carried forward**|**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Total**
**Total**
**(as**
**restated)**
**General**
**Designated**
**2022**
**2022**
**2022**
**2022**
**2021**
359,832
-
-
359,832
313,664
34,402
-
-
34,402
3,170
-
-
-
-
30,606
1,440,838
-
-
1,440,838
1,257,106
1,085,488
-
-
1,085,488
807,068
755,106
-
22,527
777,633
681,973
217,064
-
-
217,064
209,649
727,060
-
-
727,060
668,440
15,476
-
-
15,476
51,395
10,999
-
-
10,999
13,403
158,340
-
-
158,340
144,882|
|---|---|
||**4,804,605**
-
**22,527**
**4,827,132**
4,181,356
170,023
-
-
170,023
153,285
4,386,001
-
39,654
4,425,655
3,821,837|
||**4,556,024**
-
**39,654**
**4,595,678**
3,975,122|
||**248,581**
-
**(17,127)**
**231,454**
206,234
(72,534)
-
-
(72,534)
1,614|
||**176,047**
-
**(17,127)**
**158,920**
207,848
(250,000)
250,000
-
-
-|
||**(73,953)**
**250,000**
**(17,127)**
**158,920**
207,848
2,461,855
-
35,583
2,497,438
2,308,732
25,715
-
-
25,715
6,573|
||2,487,570
-
35,583
2,523,153
2,315,305|
||**2,413,617**
**250,000**
**18,456**
**2,682,073**
2,523,153|
All of the results relate to continuing activities and include all gains and losses recognised.
The notes on pages 19 to 33 form part of these financial statements.
15
## **BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) CONSOLIDATED AND CHARITY BALANCE SHEET FOR THE YEAR ENDED 31 DECEMBER 2022**
|**_Notes_**
**Fixed assets**
Tangible assets
6
Intangible assets
7
Investments
8
**Current assets**
Stock
9
Debtors
10
Cash at Bank and in
hand
Term deposits
11
**Current liabilities**
Creditors due within one
year
12
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS**
**CURRENT LIABILITIES**
**NET ASSETS**
**REPRESENTED BY**
13
Restricted funds
Unrestricted funds –
General
Unrestricted funds –
Designated Funds
Total funds|**Group**
**2022**
2021
(as restated)
**£**
£
21,652
14,799
112,871
162,086
673,522
485,902
**808,045**
662,787
12,375
9,410
323,728
513,988
144,973
144,119
2,634,087
2,449,956
**3,115,163**
3,117,473
**(1,241,135)**
(1,257,107)
**1,874,028**
1,860,366
**2,682,073**
2,523,153
**2,682,073**
2,523,153
**18,456**
35,583
**2,413,617**
2,487,570
**250,000**
-
**2,682,073**
2,523,153|**Charity**
**2022**
2021
(as restated)
**£**
£
21,652
14,799
112,871
162,086
673,622
486,002
**808,145**
662,887
-
-
255,761
462,135
66,553
54,912
2,634,087
2,449,956
**2,956,401**
2,967,003
**(1,209,910)**
(1,222,391)
**1,746,491**
1,744,612
**2,554,636**
2,407,499
**2,554,636**
2,407,499
**18,456**
35,383
**2,286,180**
2,372,116
**250,000**
-
**2,554,636**
2,407,499|**Charity**
**2022**
2021
(as restated)
**£**
£
21,652
14,799
112,871
162,086
673,622
486,002
**808,145**
662,887
-
-
255,761
462,135
66,553
54,912
2,634,087
2,449,956
**2,956,401**
2,967,003
**(1,209,910)**
(1,222,391)
**1,746,491**
1,744,612
**2,554,636**
2,407,499
**2,554,636**
2,407,499
**18,456**
35,383
**2,286,180**
2,372,116
**250,000**
-
**2,554,636**
2,407,499|
|---|---|---|---|
||||662,887
-
462,135
54,912
2,449,956|
||||2,967,003
(1,222,391)|
||||1,744,612|
||||2,407,499|
||||2,407,499|
||||35,383
2,372,116
-|
||||2,407,499|
The individual charity generated a surplus of £31,362 during the year ended 31 December 2022 (2021: surplus (as restated - £92,193).
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 12 June 2023 and are signed on its behalf by:
Caroline Godfrey Caroline Godfrey (Jun 12, 2023 18:01 GMT+1)
Mrs C M GODFREY
16
**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) CONSOLIDATED STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31 DECEMBER 2022**
|**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
Losses on fixed asset investments
Amortisation of intangible fixed assets
(Increase)/Decrease in stocks
Decrease/(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
Proceeds from disposal 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
2022
£
Cash and cash equivalents
144,119
**144,119**|**2022**
£
158,920
8,949
68,438
127,070
(2,965)
190,261
(15,973)
534,700
(15,802)
(77,855)
(376,057)
120,000
(184,131)
(533,845)
855
144,119
144,974
Cashflows
£
855
**855**|**2021 (as**
**restated)**
£
207,848
7,133
(1,614)
184,857
726
(163,933)
84,868
319,885
(7,798)
(30,433)
(484,288)
238,926
(283,593)
36,292
107,827
144,119
As at 31
Dec 2022
£
144,974
**144,974**|**2021 (as**
**restated)**
£
207,848
7,133
(1,614)
184,857
726
(163,933)
84,868|
|---|---|---|---|
||||319,885
(7,798)
(30,433)
(484,288)
238,926|
||||(283,593)
36,292
107,827|
||||144,119|
17
**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 current economic uncertainty, including inflationary pressures, 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
18
**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**
Income represents the amounts derived from the provision of goods and services which fall within the Charity’s 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. Charitable activities and governance costs are costs incurred in the Charity’s core operations including costs relating 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 Government’s Job Retention Scheme, (instigated due to the coronavirus pandemic), were received and disclosed as other income. In the year ended 31 December 2022 there were no grants from the UK Government’s Job Retention Scheme.
## **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.
19
**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 charity’s 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.
20
**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
|1
INVESTMENT INCOME
Bank interest receivable
Dividends receivable
2
EXPENDITURE
DIRECT COSTS
Trading activities
Member and Horse
Training and Education
Affiliated competitions
Championships (including U21 International Championships)
Staff costs
BEF Funding
Marketing and promotion
SUPPORT OVERHEADS
Salaries and wages
Staff expenses
Rent, rates, service & maintenance
Office sundries
Computer and machine maintenance and support
Telephone
Printing and stationery
Postage
Meetings
Bad debts
Legal and professional
Depreciation
Asset disposal
Irrecoverable VAT
Bank and other charges
GOVERNANCE COSTS
Directors costs
Fees payable to the company’s auditor
Board meeting costs
Total expenditure|**2022**
£
13,477
20,925
34,402
170,023
246,645
819,656
54,181
1,247,724
1,035,290
82,063
61,471
3,717,053
178,293
5,440
69,784
5,963
154,978
4,553
10,740
13,125
4,188
(2,957)
28,868
136,019
(150)
138,711
96,334
843,889
12,703
14,568
7,465
34,736
4,595,678|**2021**
£
1,831
1,339|
|---|---|---|
|||3,170|
|||150,977
193,707
560,995
32,101
1,107,746
959,504
65,580
62,505|
|||3,133,115|
|||164,121
8,563
69,106
1,266
138,340
14,354
13,414
6,931
2,229
(942)
18,297
191,990
(125)
115,963
67,890|
|||811,397|
|||9,907
13,830
6,873|
|||30,610|
||||
|||3,975,122|
21
**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
Direct costs and support overheads are split based on actual expenditure. Governance costs are split based on the income ratio.
||Governance costs are split based on the|income ratio.||||
|---|---|---|---|---|---|
|||||2022|2021|
|||||£|£|
||Trading & publications|||7.47%|7.54%|
||Charitable activities|||92.53%|92.46%|
||**31 December 2022**|Direct costs|Support|Governance|Total|
||||Overheads|||
|||£|£|£|£|
||Trading & publications|170,023|-|
2,595|172,618|
||Charitable activities|3,547,030|843,889|32,141|4,423,060|
|||3,717,053|843,889|34,736|4,595,678|
||**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|
|3|RESULT FOR THE YEAR|||**2022**
|**2021**|
|||||£
|£|
||The result for the year is stated after charging:|||||
||Auditors remuneration:|||||
||Fees payable to the company’s auditor for the audit of|||14,250|11,250|
||British Dressage accounts|||||
||Fees payable to the company’s auditor for services|||318|2,580|
||relating to taxation|||||
||Employer’s Pension Costs:|||91,036
|84,571|
||Operating lease rentals:|||||
||Land and buildings:|||||
||Office rental|||36,708|36,708|
||Office service charge|||18,553|18,553|
||Storeroom rental|||2,050|2,050|
||Plant and machinery:|||||
||Photocopier|||996|996|
||Pool cars|||2,435|5,219|
||Depreciation of tangible fixed assets:|||||
||Owned assets|||8,949|7,133|
||Profit on disposal of fixed assets|||150|125|
||Amortisation of intangible fixed assets:|||||
||Owned assets|||127,070|184,857|
22
**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
- 4 PRIOR YEAR ADJUSTMENT
- The prior period adjustment relates to underclaimed Gift Aid from HMRC in the period 31 December 2021 and before.
The breakdown of the underclaimed Gift Aid is:
Period ended 31 December 2020 & earlier 6,573 Year ended 31 December 2021 19,142 Total Prior Year Adjustment 25,715
The impact of the above prior period adjustment is to increase the surplus for the year ended 31 December 2020 by £6,573 and the surplus for the year ended 31 December 2021 by £19,142. The group’s and charity’s net assets at 31 December 2020 were increased by £6,573 and at 31 December 2021 were increased by £19,142.
## 5 DESIGNATED FUNDS
The Board of British Dressage have committed to re-investing back into the sport over the coming years. At 31 December 2022, £250,000 was transferred from the general Unrestricted Funds into Designated Funds.
These funds will be invested in additional projects, including Competition & Venues, Training & Education, Youth Development, Para dressage & Inclusion, Community Initiatives and Analysis & Evaluation.
## 6 TANGIBLE FIXED ASSETS
## GROUP AND CHARITY
|TANGIBLE FIXED ASSETS
GROUP AND CHARITY||
|---|---|
|**COST**
1 January 2022
Additions
Disposals
31 December 2022
**DEPRECIATION**
1 January 2022
Charge for the year
Disposals
31 December 2022
**NET BOOK VALUE**
31 December 2022
31 December 2021|Office
Refurbish-
ment
Office
Equipment
Furniture
and Fixtures
Total
£
£
£
£
26,837
92,667
37,602
157,106
-
15,802
-
15,802
-
(580)
-
(580)|
||26,837
107,889
37,602
172,328|
||26,837
77,868
37,602
142,307
-
8,949
-
8,949
-
(580)
-
(580)|
||26,837
86,237
37,602
150,676|
||-
21,652
-
21,652|
||- 14,799
-
14,799|
All tangible fixed assets owned by the charity are used for direct charitable purposes. Depreciation is charged against charitable activities.
23
**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
- 7 INTANGIBLE FIXED ASSETS GROUP AND CHARITY
|**COST**
1 January 2022
Additions
Disposals
31 December 2022
**AMORTISATION**
1 January 2022
Charge for the year
Disposals
31 December 2022
**NET BOOK VALUE**
31 December 2022
31 December 2021|Software
£
662,143
77,855
-
739,998
500,057
127,070
-
627,127
112,871
162,086|Total
£
662,143
77,855
-|
|---|---|---|
|||739,998|
|||500,057
127,070
-|
|||627,127|
|||112,871|
|||162,086|
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
24
**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## 8 FIXED ASSETS INVESTMENTS
|FIXED ASSETS INVESTMENTS|||
|---|---|---|
|Brought forward at 1 January 2022
Additions in the year
Disposals in year
Realised (loss) during year
Unrealised (loss) during year
Valuation at 31 December 2022
Cost at 31 December 2022
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 2022|Group
£
485,902
376,058
(115,904)
(3,263)
(69,271)
673,522
740,346
25,799
139,742
88,614
184,908
38,705
91,447
13,510
17,864
72,917
673,506
-
16
673,522|Charity
£
486,002
376,058
(115,904)
(3,263)
(69,271)|
|||673,622|
|||740,446|
|||25,799
139,742
88,614
184,908
38,705
91,447
13,510
17,864
72,917|
|||673,506
100
16|
|||673,622|
The charity’s investment portfolio is managed by Brewin Dolphin.
25
**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
|9
STOCKS
Goods for resale
10
DEBTORS: amounts falling due within one year
Trade debtors
Amount due from subsidiary
Prepayments
Accrued income
Taxation & social security
11
CURRENT ASSET INVESTMENTS
Fixed Term Deposits
12
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**
**Charity**
**2022**
**2021**
**2022**
**2021**
**£**
**£**
**£**
**£**
12,375
9,410
-
-
**Group**
**Charity**
**2022**
**2021 2022**
**2021**
**(restated)**
**£**
**£**
**£**
**£**
110,682
191,654
77,882
171,450
-
-
30,183
19,883
60,408
143,619
54,389
142,101
148,453
165,807
90,650
128,700
4,185
12,908
2,657
-
323,728
513,988
255,761
462,134
**Group**
**Charity**
**2022**
**2021**
**2022**
**2021**
**£**
**£**
**£**
**£**
2,634,087
2,449,956
2,634,087
2,449,956
**Group**
**Charity**
**2022**
**2021 2022**
**2021**
£
£
£
£
120,880
177,489
117,919
170,066
21,519
27,767
21,519
27,767
59,104
46,931
59,104
46,931
111,472
80,142
97,282
63,443
928,160
924,778
914,086
914,184
1,241,135
1,257,107
1,209,910
1,222,391
924,778
929,228
914,184
929,228
(902,424)
(909,115)
(891,830)
(909,115)
905,806
904,665
891,732
894,071|
|---|---|---|
||||
||||
||||
||||
||||
||||
|||928,160
924,778
914,086
914,184|
26
## **BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
|13
FUND BALANCES 2022
Tangible and Intangible fixed assets
Investments
Cash at bank and in hand
Term deposits
Other current assets
Creditors
31 December
MOVEMENT of FUNDS 2022
1 January (as restated)
Income
Expenditure
(Losses)/Gains on investments
Transfer between funds
31 December
RESTRICTED FUNDS 2022
Saddlers grant
Donation
Excel Talent Fund
Sport England
Total|Unrestricted –
General -
**2022**
Unrestricted –
Designated
Funds –**2022**
Restricted
**2022**
Total Fund
**2022**
£
£
£
134,523
-
134,523
673,522
-
673,522
126,517
18,456
144,973
2,384,087
250,000
-
2,634,087
336,102
-
336,102
(1,241,134)
-
(1,241,134)|Unrestricted –
General -
**2022**
Unrestricted –
Designated
Funds –**2022**
Restricted
**2022**
Total Fund
**2022**
£
£
£
134,523
-
134,523
673,522
-
673,522
126,517
18,456
144,973
2,384,087
250,000
-
2,634,087
336,102
-
336,102
(1,241,134)
-
(1,241,134)|
|---|---|---|
|||2,413,617
250,000
18,456
2,682,073|
|||2,487,570
35,583
2,523,153
4,804,605
22,527
4,827,132
(4,556,024)
(39,654)
(4,595,678)
(72,534)
-
(72,534)
(250,000)
250,000
-|
|||2,413,617
250,000
18,456
2,682,073|
|||1 Jan 2022
Income
Expenditure
31 Dec 2022
£
£
£
£
2,950
3,000
(5,950)
-
14,929
-
(14,929)
-
3,209
16,840
(15,025)
5,024
14,495
2,687
(3,750)
13,432
35,583
22,527
(39,654)
18,456|
A summary of the fund is further explained in the Accounting policies on page 18. The purposes of the 2022 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
27
**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
|FUND BALANCES 2021 (as restated)
Tangible and Intangible fixed assets
Investments
Cash at bank and in hand
Term deposits
Other current assets
Creditors
31 December
MOVEMENT of FUNDS 2021 (as restated)
1 January
Income
Expenditure
Unrealised gain on investments
31 December
RESTRICTED FUNDS 2021
Saddlers grant
Donation
Excel Talent Fund
Sport England
Total|
1 Jan 2021
£
2,950
9,083
-
-|Unrestricted
**2021**
Restricted
**2021**
Total Fund
**2021**
£
£
£
176,885
-
176,885
485,902
-
485,902
108,536
35,583
144,119
2,449,956
-
2,449,956
523,398
-
523,398
(1,257,107)
-
(1,257,107)|
|---|---|---|
|||2,487,570
35,583
2,523,153|
|||2,303,272
12,033
2,315,305
4,113,025
68,331
4,181,356
(3,930,341)
(44,781)
(3,975,122)
1,614
1,614|
|||2,487,570
35,583
2,523,153|
|||Income
Expenditure
31 Dec 2021
£
£
£
-
-
2,950
35,000
(29,154)
14,929
15,086
(11,877)
3,209
18,245
(3,750)
14,495
68,331
(44,781)
35,583|
||12,033||
> 14 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 2022 there were 18,278 members. (2021 17,446)
28
**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## 15 FINANCIAL COMMITMENTS
At 31 December 2022 the group and the charity had future minimum lease payments under non-cancellable operating leases as follows:
|operating leases as follows:|||
|---|---|---|
||2022|2021|
||£|£|
|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|36,708|73,416|
|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|18,553|37,106|
|Plant and machinery|||
|Not later than one year|996
|2,909|
|Between two to five years|1,743
|2,490|
|Later than five years|-|-|
The group and the charity had no future capital commitments at 31 December 2022 (2021: £ nil).
29
**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## 16 RELATED PARTY TRANSACTIONS
During the year ended 31 December 2022 the following fees and expenses were paid to the trustees:-
||Trustees|Judge/Training|Total|Amount due to|
|---|---|---|---|---|
||Expenses|Fees||trustees as at|
||Mileage,|||31 December|
||flights,|||2022|
||subsistence||||
||£|£|£|£|
|J Day|330|1,205|1,535|-|
|C M Godfrey|1,212|-|1,212|-|
|S Bates|59|-|59|-|
|J Harvey|-|2,513|2,513|-|
|S Homewood|460|-|460|-|
|C Moir|2,102|6,457|8,559|150|
|P Storr|-|15,773|15,773|-|
|H Payne|440|29,014|29,454|2,196|
|T Ormrod|2,194|-|2,194|532|
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 year, British Dressage Trading Limited received £20,167 (2021 – from appointment - £3,991) for commission on the sale of Dressage Test Pro from Lion Dog Apps Limited, a company in which T Ormrod has significant control. These transactions have been done on an 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 2022 at a cost of £3,365 (2021: £2 million at a cost of £2,466).
30
**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
|17
STAFF COSTS
Wages and salaries
Recruitment costs
Social Security costs
Pension costs
Other costs and employee benefits|2022
£
1,179,198
14,751
103,973
91,036
10,455
1,399,413|2021
£
1,006,172
9,900
90,143
84,571
9,699|
|---|---|---|
|||1,200,485|
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 outstanding contributions of £11,921 due to the fund at 31 December 2022 (2021: 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 and Chief Operating Officer) including benefits and employer pension contributions amounted to £217,291 in 2022 (2021: Chief Executive Officer, Chief Operating Officer and Chief Financial Officer £230,433)
The number of employees whose emoluments as defined for taxation purposes amounted to more than £60,000 in the year were as follows:
||2022|2021|
|---|---|---|
||Number|Number|
|£110,001 - £120,000|1|-|
|£100,001 - £110,000|-|1|
|£60,001 - £70,000|1|1|
Pension contributions for the above amounted to £14,970 (2021: £16,528)
The average number of employees calculated on an average basis analysed by function was:
|Charitable activities
Cost of raising funds
Total|2022
2021
Number
Number
36
34
2
2|
|---|---|
||38
36|
31
**BRITISH DRESSAGE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022**
## 18 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|**2022**
£
264,501
(95,686)
168,815
(41,377)
127,438
-
127,438
127,438
188,947
(61,409)
127,538|**2021**
£
232,978
(80,602)|
|---|---|---|
|||152,376
(36,720)|
|||115,656
-|
|||115,656|
|||115,656|
|||170,355
(54,599)|
|||115,756|
32