The Welsh Black Cattle Society
Report of the trustees for the year ended 31 December 2021
The trustees have pleasure in presenting their report together with the financial statements for the Welsh Black Cattle Society for the year ended 31 December 2021.
The legal and administrative information set out on page 5 forms part of this report. This report and the financial statements comply with the Charities Act 2011, the constitution of the Charitable Incorporated Organisation 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 (FRS 102, effective 1 January 2015).
Purposes and Aims
The Society was established to promote and maintain the purity of the Welsh Black Cattle breed. The Society benefits the public by promoting Wales’s only native breed of cattle and produces a Herd Book annually confirming the full traceability of cattle registered during the year.
In shaping our objectives for the year and planning our activities, the trustees have considered the Charity commission’s guidance on public benefit, including the guidance ‘public benefit: running a charity (PB2)’.
Organisation
The Charity was registered with the Charity Commission on 14[th] January 2015, as a Charitable Incorporated Organisation (CIO) with Charity number 1159937. The Society Patron is HRH The Prince of Wales KG, KT, GCB, OM, AK, QSO, PC, ADC. The Charity previously operated as an unincorporated charity, Welsh Black Cattle Society, formed in 1904.
Membership Contribution to Society Activities
The Council Chairman and all members of Council continue to address the day-to-day running of the Society and all volunteers are appreciated. Council is further supported by a Part-time Breed Secretary and the Young Member Ambassador.
The two regional clubs, the North and South Wales Clubs are important direct local points of contact for new members and have been proven to be of great benefit to all Society members in their respective areas.
How our activities deliver public benefit
Office Staff and the Secretary are providing a service to members and the general public, both on the phone and e-mail as well as attending organised events held to promote the breed each year.
The Society produces a Newsletters and a Journal which includes annual news, results and information regarding the breed progress and Society activities. The Journal also provides a useful item of promotion. The Society ‘Herd Book’ is published to give details of all cattle registrations and these can also be found on the Society website on www.welshblackcattlesociety.com.
The Welsh Black animal is a hardy breed, able to withstand the conditions of our climate and compliment sheep to graze areas of wet and high altitude which, in turn, benefits wildlife habitats, producing the environmental benefits that the public desire.
The Society also promotes the marketing of Welsh Black beef benefitting farmers and consumers, who deserve to know the traceability of food production.
The Society also organises several pedigree sales each year. The purpose of the sales is to gather together in one sale sufficient numbers of pedigree cattle to enable farmers thinking of starting a new pedigree herd to access the cattle they require. It also allows established breeders the opportunity to choose and purchase the cattle they require to improve their herd, and the breed. The Society polices these sales, ensuring pedigrees are correct, that all bulls have been DNA tested and that the Johne’s disease status is declared for all cattle on sale. This promotes and maintains the purity and health of the breed. The sales and qualities of the breed are promoted at agricultural shows, farm visits and competitions, and advertising in the national press and TV and radio coverage.
2021 Overview
The main development for the Society during the year was the decision taken to employ a full-time breed secretary. In March Miss Lynfa Jones was appointed to the post, she has settled into her new role very well and I’m certain will be a great asset to the Society.
This meant that the part time breed secretary role came to an end. We would like to thank Mrs Evelyn Jones for her invaluable contribution over the years and wish her all the very best for the future.
Later in the year after 48 years of loyal service, Miss Pat Thompson decided that she was going to retire from her post as breed administrator. It goes without saying that she will be missed by all the members and I’m sure that everyone would like me to say, thank you Pat.
As a result, the Society office is now based at Builth Wells in order to make more efficient use of the pavilion.
Financial information and Future Development
The statement of financial activity shown on page 11 shows total incoming resources in the general fund £72,944 compared with £94,720 recorded in 2020.
The expenditure has decreased from £75,427 to £74,469. There is a loss for the year of £1,525.
Pay policy for senior staff
The Trustees consider that the Council members comprise the key management personnel of the charity, in charge of directing and controlling, running and operating the charity. All Trustees give of their time freely and no trustee received remuneration in the year. Details of Trustee expenses and related party transactions are disclosed in note 8 to the accounts.
Reserves policy and risk management
The unrestricted reserves of the society are shown at £371,993. Included in these reserves are fixed assets of £121,181 and investments of £29,386. The current net assets of the unrestricted fund amount to £221,366. This should be sufficient to provide short term day to day operating capital and cover six months expenditure if no other income was received.
Trustees’ responsibilities in relation to the financial statements
The Charities Act 2011 requires the Trustees of the charity to prepare financial statements for each financial year that gives a true and fair view of the charity’s financial activities during the year and of its financial position at the end of the year. In preparing the financial statements the Trustees should follow best practice and
-
Select suitable accounting policies and apply them constantly
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Make judgements and estimates that are reasonable and prudent
-
Follow applicable accounting standards and the Charity’s SORP, disclosing and explaining any departures in the financial statements; and
The Trustees are responsible for keeping accounting records that are such as to disclose, with reasonable accuracy, the financial position of the charity at any time, and to enable them as Trustees to ensure that the financial statements comply with charity law. The Trustees are also responsible for safeguarding the charity’s assets, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the Trustees of the Welsh Black Cattle Society on 28[th] July 2022 and signed on its behalf by:
Mr Meredydd Jones Chairman Board of Trustee Welsh Black Cattle Society
Independent Examiners’ Report to the Trustees of the Welsh Black Cattle Society
I report to the trustees on my examination of the accounts of the Welsh Black Cattle Society for the year ended 31st December 2021, which are set out on pages 11 to 19 .
Responsibilities and basis of report
As the charity trustees of the Welsh Black Cattle Society, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. –
Independent examiner’s statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1) accounting records were not kept as required by section 130 of the Act; or
2) the accounts do not accord with those records; or
3) the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
David Chidley W. J. Matthews & Son Chartered Accountants 11-15 Bridge Street, Caernarfon, Gwynedd.
Dated: 18[th] July 2022
Welsh Black Cattle Society
Statement of Financial Activities for the year ended 31 December 2021
| 2021 | 2020 | ||
|---|---|---|---|
| Notes | £ | £ | |
| Income | |||
| Subscriptions and donations | 3 | 18,848 | 22,386 |
| Income from charitable activities | 4 | 49,464 | 45,509 |
| Income from commercial operations | 5 | 813 | 509 |
| Investment income | 6 | 24 | 914 |
| Other income | 3,795 | 24,402 | |
| _ | _____ | ||
| Total Income | 72,944 | 94,720 | |
| _ | ______ | ||
| Expenditure | |||
| Expenditure on charitable activities | 7 | 74,469 | 75,427 |
| ______ | _ | ||
| Net expenditure and net movement | |||
| in funds for the year | (1,525) | 19,293 | |
| Reconciliation of funds | |||
| Total funds brought forward | 373,458 | 354,165 | |
| _ | ______ | ||
| Total funds carried forward | £371,933 | £373,458 | |
| ======= | ====== |
All gains and losses recognised in the year are included in the Statement of Financial Activities. All income and expenditure derive from continuing activities.
Welsh Black Cattle Society
Balance Sheet as at 31 December 2021
| 2021 | 2020 | ||||
|---|---|---|---|---|---|
| Notes | £ | £ | |||
| Fixed Assets | |||||
| Tangible assets | 9 | 121,181 | 125,079 | ||
| Investments | 10 | 29,386 | 29,218 | ||
| _ | _ | ||||
| 150,567 | 154,297 | ||||
| Current Assets | |||||
| Stock | 1,000 | 1,000 | |||
| Debtors | 11 | 23,309 | 23,113 | ||
| Cash at bank and in hand | 12 | 211,627 | 210,366 | ||
| _ | |||||
| ______ | 235,936 | ||||
| 234,479 | |||||
| Current Liabilities:amounts falling due | |||||
| within one year | 13 | (14,570) | (15,318) | ||
| _ | |||||
| _ | |||||
| Net current assets | 221,366 | 219,161 | |||
| _ | |||||
| _ | |||||
| Net assets | 371,933 | 373,458 | |||
| ======= | ======= | ||||
| Income Funds | |||||
| Unrestricted funds | |||||
| General Fund | 15 | 371,933 | 373,458 | ||
| __ | _ | ||||
| 371,933 | 373,458 | ||||
| ======= | ======= |
Approved by the Trustees of the Welsh Black Cattle Society on 28[th] July and signed on its behalf by: Mr. E Ll Williams
Edward Williams
Welsh Black Cattle Society
Notes to the financial statements for the year ended 31 December 2021
1. Accounting policies
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
a) Basis of preparation
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) – (Charities SORP (FRS102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Charities Act 2011. The financial statements are prepared in sterling, which is the functional currency of the entity.
The Welsh Black Cattle Society meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historic cost or transaction value unless otherwise stated in the relevant accounting policy note.
b) Preparation of accounts on a going concern basis
The Trustees are of the opinion that there are no reasons why the charity accounts should not be prepared under the going concern provisions.
c)
Income recognition policies
Items of income are recognised and included in the accounts when all of the following criteria are met:
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The charity has entitlement to the funds;
-
Any performance conditions attached to the items of income have been met or are fully within the control of the charity;
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There is sufficient certainty that receipt of the income is considered probable; and
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The amount can be measured reliably.
Subscriptions are accounted for in the period to which they relate.
Income from services are accounted for when the services are provided.
d)
Expenditure and irrecoverable VAT
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
Charitable activities include expenditure associated with projects and include the direct costs and support costs relating to those activities.
e) Fund accounting
Unrestricted funds ae available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when restricted by the donor or when funds are raised for particular restricted purposes.
Welsh Black Cattle Society
Notes to the financial statements for the year ended 31 December 2021
1. Accounting policies
f) Tangible fixed assets
Fixed assets are stated at cost. The cost of minor additions or those costing below £100 are not capitalised. Depreciation is provided on all assets in order to write down the cost or valuation of fixed assets to their expected residual value in equal instalments over their expected useful lives as follows:
Building 2% Office Furniture and Equipment 10% Computer Equipment 33%
g)
Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid after taking account of any trade discounts due.
h) Cash at bank and in hand
Cash at bank and cash in hand includes cash and short-term deposits.
i) Creditors and provisions
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts.
j)
Financial instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
2. Legal Status of the Trust
The Trust is a Charitable Incorporated Organisation registered with the Charity Commission on 14 January 2015.
Welsh Black Cattle Society
Notes to the financial statements for the year ended 31 December 2021 (Continued)
| 2021 | 2020 | ||
|---|---|---|---|
| **3. ** | Subscriptions and donations | £ | £ |
| Subscriptions | 17,426 | 20,422 | |
| President’s donation | - | 2,000 | |
| Sponsorship and awards | 1,422 | 964 | |
| ______ | ______ | ||
| 18,848 | 23,386 | ||
| ______ | ______ | ||
| **4. ** | Income from charitable activities | ||
| Registration fees | 23,690 | 28,195 | |
| Private Herd Books, Volumes etc. | 4,155 | 5,077 | |
| _The Journal:_Advertising | 2,537 | - | |
| Auction levies | 6,021 | 1,891 | |
| Auction commission | 6,021 | 1,891 | |
| Transfer fees | 1,538 | 1,694 | |
| Steer pedigree certificate | 4,902 | 6,261 | |
| Prefix fees | 600 | 500 | |
| ______ | ______ | ||
| 49,464 | 45,509 | ||
| ______ | ______ | ||
| **5. ** | Income from commercial operations | ||
| Sale of straws | - | 246 | |
| Website advertising | 40 | 80 | |
| Other income | 773 | 183 | |
| ______ | ______ | ||
| 813 | 509 | ||
| ______ | ______ | ||
| 6. | Investment income | ||
| Income from National Savings Bank | 3 | 141 | |
| Bank interest | 21 | 773 | |
| ______ | _ | ||
| 24 | 914 | ||
| ______ | ______ |
Welsh Black Cattle Society
Notes to the financial statements for the year ended 31 December 2021 (Continued)
7. Total Resources expended
| Total Resources expended | ||
|---|---|---|
| Total | Total | |
| 2021 | 2020 | |
| £ | £ | |
| Wages | 16,052 | 19,596 |
| Redundancy | 1,961 | - |
| ABRI Breed Plan | 3,772 | 6,488 |
| Printing of Herd Book | - | 4,270 |
| Publicity | 2,894 | 1,706 |
| Sundry printing | 4,212 | 390 |
| Expenditure at shows, auctions and events | 1,854 | 10 |
| Photographs and engraving | 240 | 774 |
| Travel costs | 1,660 | 706 |
| Semen purchase and collection | - | 429 |
| Depreciation | 4,863 | 4,864 |
| Governance costs | 7,846 | 9,747 |
| Support costs | 29,115 | 26,447 |
| _ | _ | |
| £74,469 | £75,427 | |
| _ | _ |
Analysis of governance and support costs
The charity initially identifies the costs of its support functions. It then identifies those costs which relate to the governance function. All costs are in respect of the charity’s principal objectives.
| General | Governance | Total | Total | |
|---|---|---|---|---|
| Support | Function | 2021 | 2020 | |
| £ | £ | £ | £ | |
| Salaries | 7,447 | 5,751 | 13,198 | 15,897 |
| Rent, rates and lighting | 4,950 | - | 4,950 | 5,201 |
| Insurances | 2,439 | - | 2,439 | 2,069 |
| Meetings | 200 | - | 200 | 104 |
| Website | 1,123 | - | 1,123 | 866 |
| Stationery, postage and telephone | 7,838 | - | 7,838 | 6,157 |
| Software | 1,584 | - | 1,584 | 1,550 |
| Subscriptions | 77 | - | 77 | 611 |
| Independent examination | - | 2,095 | 2,095 | 1,770 |
| Professional fees | 1,735 | - | 1,735 | 200 |
| Repairs and renewals | 124 | - | 124 | 149 |
| Bank charges | 107 | - | 107 | 225 |
| Depreciation | 426 | - | 426 | 769 |
| Other | 1,065 | - | 1,065 | 626 |
| ______ | ______ | ______ | ______ | |
| 29,115 | 7,846 | 36,961 | 36,194 | |
| ______ | ______ | ______ | ______ |
Welsh Black Cattle Society
Notes to the financial statements for the year ended 31December 2021 (Continued)
8. Analysis of staff costs, trustee remuneration and expenses and the costs of key management personnel.
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Wages and salaries | 29,125 | 34,993 |
| Pension costs | 125 | 500 |
| _ | _ | |
| 29,250 | 35,493 | |
| _ | _ |
The average number of full-time equivalent employees was 2 (2020 - 2) . No employees had employee benefits in excess of £60,000. There were no prepaid pension payments or accruals of pension costs at the year-end (2020 – NIL)
The key management personnel of the charity are its trustees. No fees or salaries were paid to any trustees during the year (2020 – NIL). No repayments were made to any trustee for expenses incurred (2020 – NIL). No charity trustee received payment for professional or other services supplied to the charity ( 2020 – NIL) .
9. Fixed assets
| Fixed assets | |||
|---|---|---|---|
| Land and | Furniture and | ||
| Buildings | Equipment | Total | |
| £ | £ | £ | |
| Cost | |||
| At 1 January 2021 | 163,376 | 49,675 | 213,051 |
| Additions | - | 1,391 | 1,391 |
| _ | _ | _ | |
| At 31 December 2021 | 163,376 | 51,066 | 214,442 |
| _ | _ | _ | |
| Depreciation | |||
| At 1 January 2021 | 40,585 | 47,387 | 87,972 |
| Charge for the year | 3,268 | 2,021 | 5,289 |
| _ | ______ | _ | |
| At 31 December 2021 | 43,853 | 49,408 | 93,261 |
| __ | _ | ||
| Net Book Value | |||
| At 31 December 2021 | 119,523 | 1,658 | 121,181 |
| _ | _ | _ | |
| At 31 December 2020 | 122,791 | 2,288 | 125,079 |
| _ | _ | _ |
Welsh Black Cattle Society
Notes to the financial statements for the year ended 31 December 2021 (Continued)
10. Investments
| 10. Investments | |||
|---|---|---|---|
| OpeningTransferred | Closing | ||
| balance | balance | ||
| £ | £ | £ | |
| National Savings Bank Investment Account | 23,218 | 168 | 23,386 |
| National Savings Bank Income Bonds | 6,000 | 6,000 | |
| _ | _ | _ | |
| 29,218 | 168 | 29,386 | |
| _ _ | |||
| All the investment assets are in the United Kingdom. | |||
| 2021 | 2020 | ||
| 11. Debtors | £ | £ | |
| Trade Debtors | 17,802 | 17,855 | |
| Other debtors | 5,507 | 5,258 | |
| _ | _ | ||
| 23,309 | 23,113 | ||
| _ | _ | ||
| 12. Cash at Bank and in Hand | 2021 | 2020 | |
| £ | £ | ||
| General Account | 9,668 | 5,428 | |
| Deposit Account | 201,780 | 204,759 | |
| Breed Development Account | 129 | 129 | |
| Cash in hand | 50 | 50 | |
| _ | _ | ||
| 211,627 | 210,366 | ||
| _ | _ | ||
| 13. Creditors:amounts falling due within one year | 2021 | 2020 | |
| £ | £ | ||
| Taxation and social security | 2,593 | 3,376 | |
| Accruals | 11,977 | 11,942 | |
| ______ | _ | ||
| £14,570 | £15,318 | ||
| _ | _ |
Welsh Black Cattle Society
Notes to the financial statements for the year ended 31 December 2021 (Continued)
14. Corporation Tax
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objectives.
1. Funds
| Unrestricted funds | ||||
|---|---|---|---|---|
| Balance | Income | Expenditure | Balance | |
| 31 December | 31 December | |||
| 2020 | 2021 | |||
| £ | £ | £ | £ | |
| General Fund | 373,458 | 72,944 | 74,469 | 371,933 |
| ____ | ____ | ____ | ____ | |
| Unrestricted funds – previous year | ||||
| Balance | Income | Expenditure | Balance | |
| 31 December | 31 December | |||
| 2020 | 2021 | |||
| £ | £ | £ | £ | |
| 354,165 | 94,720 | 75,427 | 373,458 | |
| ____ | ____ | ____ | ____ |
16. Analysis of Fund Balances between Net Assets as at 31 December 2021
| Analysis of Fund Balances between Net Assets | as at 31 December 2021 | |
|---|---|---|
| Total | Total | |
| General Fund | 2021 | 2020 |
| £ | £ | |
| Fixed assets | 150,567 | 154,297 |
| Cash at bank and in hand | 211,627 | 210,366 |
| Other net current assets | 9,739 | 8,795 |
| _ | ______ | |
| Total Net Assets | 371,933 | 373,458 |
| _ | ______ |
Sufficient resources are held to enable each fund to be applied in accordance with the restrictions imposed.