COTTONS Chartered Accountant8 Statement of Accounts Charlty Reglstratlon No. 213782 Company Reglstratlon No. 00013393 (England and Wales) THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 COTTONS Chartered Accountants THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS LEGAL AND ADMINISTRATIVE INFORMATION Trustèès Mr P J Alvis Mr J Brierley Mr R K Craig rTJ Downes Mr L R C Erlwards MrMPKlng MrJMOwèn Mr G N Trehane Mrs D R Waslenage Mr W J Wesla¢ott Mr W H Whiloford Mr WL Arfflilage MTS SJ Tomllnson Mrs KE Hallon Mrs PC Wilson (Appointed 25 June 2020 (Appointed 8 June 2021} (Appointed 8 June 20211 (Appointed 8 June 2021) Charity numbor 213782 Company number 00013393 Reglslered offlce The Siables Church Walk Dav8nty Norlhamptonshlro Unllod Kingdom NN114BL Independent examlner Collons Accountsnls LLP The Slablès Church Walk Davenlry Northamplonshire Unlled Kingdom NN1148L THE ROYALASSOCIATION OF BRITISH DAIRY FARMERS CONTENTS Pagè Trustees. report Independent oxaminer's report Slatemenl of flnandal acliviliès Balance sh8et Stal8m8nl of cash flows Notes lo th8 finan¢lal statements 10-18 THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 MARCH 2021 The trusleos present Iheir report and financial stataments lor the year trnded 31 March 2021. The finan¢ial statements have been prepared in 8ccordance with Ihe acGounling policies stsl out in note 3 to Iha financial slalemenls and comply with the charlty's goveining document. the Companlas Act 2006 and "Accounting and Reporting by Char1116s.' Statement ol Recomm¢nded Practice applicable to charitles preparing their accounts In accordance wilh Ihe Financial Reporting Standard applicabl8 in the UK and Republlc of Ireland IFRS 102) leffecllve 1 January 20191" StrucluraF govèrnan¢g and management RABDF is a ch8rilebla company limited by guarantee and does not have any share eapllal. The Assoclalion was incorporated under Licence ol the Board of Trade on 1st Oclobèr 1879 and registered as a charily on 5th December 1961 {No.213782). The company was aslablished under Memorandum of AssoGialion which 6stabllshed the objects and powgrs of the charitable cornpany and is governed under its Artl¢las of Associatlon. In the event of the company b@Ing wound up members arè requir8d lo conlrlbule an amount not gxceeding £5. The directors of thè company are also charily Irusleos for th8 purpose ol charlty18w and under the company's Arliclgs known as members of Ihe Council. Members lo rellre wlll bè those that have been longest in office since Iheli last election or appvinlrnenl. All members ol the Council musl bo active within the dairy farmin9 Industry. RABDF Mombers are annually approachgd as lo whether they are interested lo sland for election onlo oouncil. Any new Iruslèè undèrgoès a relevanl Indu¢llon prwgss which focuses upc>n tha￿r role and responslbllltles. The Council of Management acls a$ the Board of Trustees and is responslble for the overall governance of the charity. 11 mé81$ al lea814 limes a year in addillon lo Ihe AGM. The Board requ¢81s th8 Chairman's committe& to meet more Frequently with appropriale m8mbers of staff to ansure the elficienl running ol Ihe charity. Other commSllees from wilhin the Board aro lorm8d usually using a 'lask based" approach to carry out cerlaln duties. Two slandir)g commllleès - one on R8munerallon & Audit and the other on Inveslmenls meet as and when. Risk Manag•mèrit Thlg ha5 become much more important in recent tim6s Ènd tho Tiustees have conducted Ihoir own review of the malc>r rfsks lo which the charity is likèly lo be exposed and pul In appropriate system5 to deal wilh such eventualities. THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 Ob5gctlvo$ and actlvltlo$ The Assoclatlon's charitable alms and obleclSves are lo encourage Ihe development of a successful, sustainable and profitable dairy farming sector in Ihe UK. 11 does this by a series of relevant aetivilies, the main one ofwhich is the running of Dairy-Tech. RABDF are the only national dalry membership associalion with the freedom and capacity to lobby. We have unique and well-eslablished relationships up and down the wholg dairy supply chain and we are the only dairy organisalion holdlnu a Royal Warrant and Iho Influence and access to funding that brings. Our short.lerm goal Is lo deliver a COVID safe Dairy-Tech 2022. we also Inltsnd lo grow the sland and sponsorship revenue, by increasing the sellable event spa¢$ conl¥acted from the venue. by circa 2.OOOsqlm, Ihls will lak8 Ihe form ol a nèw outdoor machinery ar&a. We wll be rnoniloring the performance and success ol Ihls short lemi goal by utilising sales plans, sales lar9ets and key perform8nc$ Indieators. Th8 Inereased sland revenue will help furth8r fund RABOF'8 charitable aims and oblecllves by allowlng us lo allocate moTe resourca into our policy activity. The tnjslees have paid due regard to guidance issued by the Charlty Commlsslon In declding what activities the chaTily should undÈrtak8. Achlevements and performance RABDF, Ilke most o¥ganlsalions, has had to navlgale itself through the COVID-19 Pandemlc, lo date doing this su¢¢e$sfully. When thè flrst lockdown was implamenled In 2020. RABDF used ils industry kno￿edge and Informed Government of Ihe correct facls and figures surrounding 'milk lipping. Ihal was occurring al various UK dairy farms. This action resulled in Goverr)menl launchlng the Dairy Response Fund for dairy farms that fitled their cri10ria. FiABDF Constantly Informed Ihe dalry Industry, Government and the wider prèss of Ihe V8rlous Issues that Ihe Pandemic presented for UK dairy farmers. RABDF continued lo be al the forefront for informing and influ8ncing the issues surrounoting the Teliance of overseas labour on dalry farms. Earfler thls year RABDF submitted ils vpdaled fin(tings lo Govarnment Includlng various short- medlum- and long-lerm solutions and re¢omm&nflallons rélatlng lo Ihis major issue. RABDF Inlluenclng activities continu8 wilh regular meetings with DEFRA. where we have infoimod Ihtrm on loplcal Induslry Issues surrounding on-farm staffing resourcès, TB and AMR. RABDF has offered feedback and guidance to DEFRA on their Livestock Improve Programm& ILIPI. RABDF continues with the joint 8ecrelaTial, wllh Dalry UK, ol the All Party Pavliameniary Group on Dairy, whl¢h allows Issues an(1 concerns lo b8 ralsed by the Group to Inllu8nlial parliamenlarian¥. RABDF have al$0 formed an Industry Stratégy Group with a worklrwJ mandate lo addre88 any of the urgent issues that face UK d8iry farming. To dale this Group has ￿en exlremely su¢c6ssful in brlnglng the Industry together to look al issues and discuss potential solutions. Sadly, the COVID pandemlc and anolh8T lockdown meant that RABDF were not pem)btted to deliver physical Dalry-Tech In 2021 at Slonelelgh Park. However. RABDF delivered ar) extremely successful 'Dalry- Tech Onlino, Snstead. This on-lin8 èvant consisting of conferences, webinars, new product launches and workshops lasted for 14 days wilh each day'8 aclivily locusslng on a different aspect of the Industry. The ¥eri88 of tsvenls wer6 well recelved by Ihe Industry, wllh over 6.000 attendee booklngs for the various onllne sessions. All KPI'S were ex¢eedEd for Ihis online event with revenue drivtsn by sponsorshlp and 8xhibilor Sales. RABDF has vèry successfully organised and njn several knowledge transfer ovonls such as a farm open day, meetings and has Gonlinued the well eslabllshed and appreciated Entrepreneurs in Dalrying training progfawnmo for young people ￿¢￿ntlY out of collegeluniversity who want io increase their bu8Ing85 skllls. This Is a loinl inilialive belwgen RABDF, AHDB, NFU and Anderson$ and plans arè well advanced lor the 2021 course to run on a similar basis. THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) {CONTINUED) FOR THE YEAR ENDED 31 IWARCH 2021 Planj for the future We have lound success In a collaboralive approach and have refused to work on PTojecls that d%Jplical8 others work. The unique work focusèd on overseas labour and anliblolic reducllon has well received by Ihe whole of the dairy industry. WB will ¢onllnue with the successful mantra of collaborate, rather than duplicate, and inform and inllutrnce on Ihe biggesl issues affeciing th& industry, we also plan lo extend our policy work, lo¢using on areas that thè board ol Iruslees see fll. Publlc b8n6flt The Iruslees consid8r thèy havts cornplied with their duly lo havg duo r@gaid lo the guidance on public benefit. as publishÈd by the Charlty CommlssSon, In oxercising their powers and dulles. Flnan¢lal revlew Covid 19 and specifically restriclSon8 on holding Sarge evenls and conferences have had a malerlal impact upon our incornÉ during the year. Revenues to the cha¥ily were reduc8d a8 our Gold Cup event and conferences were cancelled or moved on line. Similarly Income earned by our subsldiary Evttnts For You Ltd was materlally Impacted by our decision not lo organise a Dalry-T8ch event in 2021. Although Ihelr costs were also significantly ieduced, they were not able lo make an operating profll and no funds were available lo gill lo Ihe charity. Immediately upon dgcldlng Ihal il would not be possible to (J¢llver Dalry-Te¢h as planned. the Trustees mel lo lak8 action in order lo miligal& th6 flnan¢lal Impact. The resulting decisions lo mov6 fh& èvenl on-llne and lo critically revièw and r8duce overhead costs meanl that wg were able lo reduce operating costs by £106,561 and maintain some revenue strtsams. Oespile Ihis, the overall result has sllll loft us wlh a deficit on our charitable activities of £158.297. The deficit was partly offset by a gain in lh& value of our investments of £100.794 and as a result our resorves fell by £57,503 10 £837,441 a result which Ih@ Trust88s deem lo be acceptable in the exceptional circumstances of the financial yaar. Our plans lor the current linancial year Includg a positive contribution from Dairy-Tfjch 2022 and this. together wllh a rè$umpllon of other aclivilies, should ensure thal wè arè ablè lo report an operating surplus and rebuild our reserve posllion. Throughout w8 have been able lo maintain adequate short term cash balanGes lo enable us lo meet our day to day obligations. The TNslees con15nue lo exarnine the Associalion's requirements for reservas. The events of 2021 show Ihat Ih8y have been sufficienl lo enable us lo adjust tha business lo changing circumstance. Oijr pglicy remain5 10 maintain sufflcienl resotvfys to conllnue lo Irade and allow Ilma for apèrallng Costs and income steams lo bg adjusted as we respond to any furthèr Imp8cis on OUT business. We consider Ihal Ihe ¢uirgnl level of reserv8S and short term Cash remain adequate. Our poll¢y on Investments remalns to malnlaln a balanced low to medium rlsk portfolio vl&wed as a len year investment approprlate lo our charitable status. That policy has seen the value ol otjr investments reeovar from the market's neoalive rea¢lion lo economic data in 2020 and enables us lo rèport the gain in value as staled abov8. Our Investment policy was levlwed by tho Trust6es durin9 Ihe year. Th6 financial 8talemenls have been prepared on a golng concern basis. The Trustees hBve ¢on8ld¢red Ihe level nf funds held and the expected 18V81 of Income and expendllurè for 12 months Irom aulhorising Ihese Ilnan¢Sal $talomenls. The budgeted ineoma and expenditure Is sufficient wilh the level of resorves for Ihe charity lo be ablg lo continue as a going concern. 11 is the policy of the tharily that unrestricled fund5 which have not beeri designated for a specific usè should b6 mainlalned at a level equlvalenl lo beiween three and six month's oxpandllurè. The Iiuslees considers that reserves al Ihls level will ensure that, In the ¢vonl ol a slgnilicanl drop in funding, they wlll be able lo continue the charily's current aclivilies while consideration is giv8n to ways In which additional funds may be ralsed. Th18 levol ol reserves has be&n maintainèd throughout the year. THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT} (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 Thè trustees. who are also the directors for the purpose of company law, and who $grv@d durlng the yea¥ and up lo the dale of signature of the financial slalemenls were.. Mr P J Alvis Mr J Brierley Mr R K Cralg Mr T J Downes MT L R C Edwards MrMPKing MrJ Mowon Mr G N Trehane Mrs D R Waslenage Mr W J West8¢Ott Mr W H Whileford Mr WLArmilagg Mrs SJ Tomlinson Mrs KE Halton Mrs PC Wilson (Appointed 25 June 20201 (Appointed 8 Junè 2021) (Appointed 8 June 2021} IAppoinled 8 June 2021) Statement of trustees, rèsponslbllitles The trustees, who are also the dlreclors of The Royal Assoclallon Of Brlllgh Dalry Farmers for the purpose of company law. are responsible lor preparing the Tiuslees, Report and the financial slalemenls in accordanc8 with applicable law and United Kingdom Accounting Standards (United Kingdom Geneially A¢¢gpled Accounllng Practlcel. Company Law requires Ihg Iruslees to prepare financial slalements for each financial year whl¢h gfv$ 8 true and fair view of th& stale ol affairs of the charity and of the incoming resources and appll¢allon of resources, Including the income and expenditure. ol the charitable company for that year. In preparing thtsse financial statements, the trustees are required to.. select suitable accounling policl&s and then apply them conslslenlly.. obseNe the methods and principles in the Charili&s SORP., make ludgomenls and esllmalfrs Ihat are reasonable and prudent; and prepare Ihe financial slalemen15 on th8 going con¢em basis unless il is inappropriate to presume that th chaTity will continue in operallon. The Iruslees are responsible for keoplng ad$quate accounting records that disclose with reasonable accuracy al any limfj the linan¢ial position of Ihe charity and enable Ihem lo ensure that the finan¢Sal statements comply wllh the Companies Act 2006. They are also responslb19 for safeguarding the assets of the charity and henc8 for taking reasonable steps for Ihg pr8vanllon and detection of fraud and other Irregularlllos. The Irusle was approved by the Board of Trustee5. Mr P J Alvls Trustoe Mr J Brl&rloy TrLisleè THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS I report to th8 Iw$lees on my examinallon of Ihe finan¢ial slalomenls of Th8 Royal Assoclalion Of Brllish D81ry Farmers Ilhe charily) lor the y8ar end8d 31 Maich 2021. Responslbllltlas and bas1$ of Teport As the (ruslees of Ihe charity land also its direclors for the purposes ol company law} you are responsible ft)r the preparation ol tho financial slalements in accordance with the requirements of the Companies Acl 2006 Ilhe 2006 Acll. Havlng salislled mysèlf that the financial slalemenls of the charily are not r8qulred lo be audited under Parl 16 01 thè 2006 Act and are eligible for independenl examination, I report in respecl of my examination of the charily's fSnan¢lal slalemenls cariied out under section 145 of Ihe Charities Act 2011 Ilhe 2011 ABI). In airying out my examination I havè folk>wed all the applicable Direclions given by the Charity Commission under secli¢)n 14515llb) of the 2011 Act. Independent examlner's sthtemtrnt I have completed my èxamination. I confirm that no mallers have come lo rny all8nlion In connection with Ihg oxamlnalion giving me cause to belleve that in any malerial respgcl.. accounting records were nol kept In respe¢l of the charity as requlred by ts6clion 386 01 the 2006 Act. or the financial slatemenls iio not aword wlth those records- or the financial statements do not comply with the accounting requiremenis of g?¢lion 396 01 the 2006 Act olhèr than any requirement that Ihe accounts give a true and falr view which is not a maller considered as parl of an Indtspondenl examination., or the linanclal $latewnenls have not been prepared in accordan¢¢ wllh th8 methods and princlpleg ol th Statement of Recommended Practice for accounting and reporting by eharilies applicablg to charities preparlng Ihelr accounls In accordance Mih lh8 Flnandal Rèportlng Standard appllcablo In tho UK and Republic of Ireland IFRS 1021. I have no concerns and have comè acrosg no other matters in connection with Ihe examlnatlon to whlch allenlion should be drawn in this reporl in order lo enable a proper understanding of the financial s(alements lo be rèached. Callurn V eyA.C.A CollonsAccounlanls LLP The St8blgs Church Walk Davenlry Norihamplonshire NN1148L United Kingdom 06.12.2021 Dated.. THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2021 Unre$trlcled Unrestricted fund$ funds 2021 2020 Notes an en Donalions and legacies Olher trading acllvilie8 Investments Other in¢ome 33.651 30,406 15,047 82,682 319.327 90,302 18,110 159,971 Total Income 161,786 587,710 Staff ¢osl$ Depreclalion and loss on dlsposal Insurance Telephone Postagè and slalionery Sundry expenses Premlses gxponses Membership costs Conference, events and awards Policy advisors Temuneralion Bank charges and Inleresl Investment brokers fees Legal and professional 1888 Governance costs 226,166 1,835 1,095 4.740 5,931 187 31,080 1,089 35,931 7,205 269,308 1,039 2,265 4.766 7,060 3,245 30,456 1,934 84.409 9.290 706 1.276 936 9,954 1.403 217 3,215 Total charltablè Èxpèndlturè 320,083 426.644 Net galnslllo$se$l on Inves(m6nts 11 100.794 74.3171 Not movement In funds {57.5031 86,749 Fund balances al 1 April 2020 894,944 808.195 Fund balances at 31 March 2021 837,441 894,944 Tho stalemenl of flnanclal acliwlies Includes all gains and losses recognised In the year. All Income and expenditure dèrN8 from conllnulng aclSvllles. Th8 slalement of flnanclal aclivllies also compli08 wllh the reqLJlrements for an Income and expenditure account under the Companies Act 2006. THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS BALANCE SHEET ASAT31 MARCH2021 Unrestricted funds 2021 Unr¢slrleted funds 2020 Noles Flxed a$$&ts Tanglblo as8els It)vÈstmenls 12 13 3,413 561,751 2.710 462,493 565,164 465.2L13 Currènt assets Dgblors Cash al bank and in hand 134,754 167,756 282,172 180,395 302,510 462,567 Credilor¥.' amounts falllng due wllhln one yoar 16 130.2331 (32,826) Nel current assets 272,277 429,741 Total a55915 less current IlabllltSès 837.441 894,944 Income funds Unrgslrlcled funds 837,441 894,944 837.441 894,944 THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2021 The company Is 8nlilled lo the exemption from the audit requiramonl ¢ontained in section 477 of the Companies Act 2006, for Ihe yeaf ended 31 March 2021. The dlrectors acknowledge their responsibilities for ensuring that the charity keeps ac¢ounllng records which comply wSlh section 386 of the Act and for preparlng financial statements whlch glve a true and fair view of th6 stale of affairs of the company as at Ihe end of the financial year and of ils incoming resources and appll¢atton of f8sources. including ils income and expenditure, for (he financial yoar in accordance wilh Ihg requirernenls of sedlons 394 and 395 and which olh8rwis8 Comply wSth th& requirements of the Companles Act 2006 relating lo financial statements. so far as appllcable to the Company. The members havo not required the company lo oblaln an audll of its financial Slalemenls for the year In question in ac¢ordance with section 476. These financial slalomonls have been prepared in accordancg wllh the provisions appllcable to compani95 subject to the small companies Tegime. 29th October 2021 The financial statements wgrè approved by the Trustees on Mr P J Alvis Tru$tao Mr J Brierley Trustee Company Reglstratlon No. 00013393 THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021 2021 2020 Notes Cash flows from opèratlng actlvitles Cash (absorbed byygeneral8d from operallons 126,686} 196,627 Investlng actlvltles Purchase of langibla flxed a5sels Purchase of Inveslm8nls Proceeds on dlsposal of investments Invtsslmenl irKome received 12.537} {49,2291 1,120 18,110 1.537 15.047 N&1 cash generated fromllu8ed Inl Invastlng actlvltles 14.047 129,999) Net cash usod In flnanclng acllvltles Not Idècrèasèlllncrgase In cash and equlvalenls 112,6391 166.628 Cash and cash oqulvalenls al beginning of y8ar 180,395 13,7fj7 Cash and cash equlvalonts at end of year 167,756 180,395 THE ROYALASSOCIATION OF BRITISH DAIRY FARMERS STATEMENT OF CASH FLOWS (CONT5NUED) FOR THE YEAR ENDED 31 MARCH 2021 Cash general¥d from oporatlons 2021 2020 ID8flcllystJrpus for the year 157.503) 86.749 Adjustrnents for.. Investment income iecognised In stalemgnl of Ilnancial aclimlies Loss disposal of tangible lixed assels Fair value gain5 and losstss on Inveslmenls Oepreclatlon and impairment of18nglbl8 fflx8d assels {15.0471 202 {100,794} 1,631 {18,110) 74,317 1.039 Movements In worklng ¢apllal: Decrease in debtors (Decrease) in creditors {Deuea$8Yincr8asa in deferred income 147,418 {2.052) 1541) 50,868 16.097} 7.861 Cash (absorbed byllgenerated from operatlons 126,6861 196,627 Analy¥l$ ¢¥f ¢hang•s In not funds The charity had no debl durlng Ihe year. A¢¢¢untlng pollcles Charlty Informatlo The Royal Association 01 Bri118h Dairy Farmers is a privalg company limited by guaTante8 incorporated in England and Wales. Th8 registered offict is The Stables, Churoh Walk. Daventy, Northamplonshir8, NN11 4BL, Unllèd Kingdom. 3.1 A¢countlng conventlon The financlal slalements of the charl¢able Company, whi¢h Ss a public benefll enlily under FRS 102, have been prepaTed In accordance with the Charities SORP {FRS 1021 'Accounling and Reporting by Charities- Slalemenl of Recommended Pra¢lic8 applicable lo charilies praparlng Ihelr accounts in accordance wilh the Financial Reporting Standard applicabl2 In the UK and Republic of Ireland IFRS 102} lèff8CtIV8 1 Jar)uary 20191,, FinanGlal Reporting Standard 102 'Tha Financlal Reporting Standard applieable in the UK and Rapublic ol Ireland, and the Companies Act 2006. The financial s¢atomonls hav? been prepared under the historical cost convention, with Iho &x¢eplion of Inveslm&nts which ore Included at maTket value, as modified by the revaluallon of c8rt8in assets. The financlal slalemenls arg presented in sterfing which is the funcllonal currency of th8 charlty. Th& charSly has opted to report the pxpendllure on the basis of the naluro of expenditure, rather than on an a¢tivily basis. 3.2 Golng concern Al the lime of 8pprovlng the financial slalemenls, the trustees have a reasonablo 8xpg¢talion that Ihe charity has adequate resources lo continue In operaltonal existence for th¢ foreseeable future. Thus the Irust¢es continue to adopt the golny concern basls of accounllng In preparing the fin8n¢ial Slalemgnls. 3.3 Charltable funds Unreslrl¢led funds are available for use 81 the dlscrellon of th& trustees In furtherance of their charitable obleclives. 10- THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Aecounling pollcles Icontinuedl 3.4 Income Income is recognised when the d)adly is legally enlilled lo il after any parfomance condttlons h8V@ been mel, the amounts can be measured reliably. and it ig probable that income will be recoived. Cash donalSons aro recognised on recelpt. Other donations are recognised once Ihe chBrity has been notified of the don81ion, unless performa￿8 conditions require deferral of tho amount. Incomo lax re¢ovorable in relation lo donallons rec9ived under Gift Aid or dèéds of covenanl Is recognisod al the lime of the donallon. Memb8rshlp subscriptlons are apporllonad over the per1￿1 they relate lo. Investment Income is aarnèd through holding assets for investment purp¢)ses such 88 shares. Management charges relalg to amounts rocharged lo other entities in relatlon lo expenses InciJrr8d on behalf of those enlilies. 3.5 Expendlturg Liabilities are recognised as expendllure as soon as there is a legal or conslruclive obligation ¢ommilling tho Charity lo that expenditure, it is probable that a transfer of eoonomtc benefits will be reqlklrod in selllemenl and th$ amount of the obligation can be measurad rallably. Expendllure Ss accountèd for on an aceruals basls and has been classifl6d ut)dèr headings Ihal aggfegale all cost relatfrd lo the category. Where ¢osls ¢annol be directly allribuled lo particular headin9S thay have been allocated to activi11gs on a basis consistent with the use ol resources. 3.6 Tanglble flxgd assets Tangible fixed assèts are inllially measuied al cost and subsequently mèasured al cost or valuation, nal of dèpreciation and any impairment losses. DeprÉ¢ialior¢ is recognised so as lo write off the cost or valuation of assels less Ihelr residual values over their useful Ilves on the following basas.. Fixlures and fillings Computèrs 33Yo on reducin9 balance 25Yo on cost Th@ galn or loss a¥lslng on Ihe di%posal of an assel delorfflined as Ihe differencè betw¢en the sale proceeds and the carrying value ol Ihe as$el, and is ￿cogniSed in net income/{expendilurel for Ihe year. 3.7 Flxed 9gs•t Inv•$tm6nts Fixed asset Investments are initially measurèd al transaction prlce 8x¢luding l¥an8aclion costs, and arè stjbsèqutrnlly measured al falr value al each reporlSng dale. Chang8s in falr value arè recognised in nel incomellexpendilurel lor the year. Tran$a¢lion costs are expensed as incurred. Other investments are mèasured al cosl less impalrmenl. A subsidiary is an antily conlrdled by Ihe charity. Control is the power lo govèm the financial and operallng policles of th8 ènllly so as to oblaln ben8fils from Ils acllvlli&s. Inv8slmÈnts In subsidiarles aro measured al osl le88 impairmènt. 3.8 Ca8h and cash equlvalents Cash and cash èquivalents include cash in hand, depDsils held al call wilh banks, olher shorl-lerm liquld inveslrngnls with original maturllies of three months or lass, 8nd bank overdrafts. Bank overdrafts are shown within borrowlngs In currenl Ilabi151Ses. 11 THE ROYALASSOCIATION OF BRITISH DAIRY FARMERS NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 Accounllng pollclg$ {Contlnuedl 3.9 Flnanclal Instruments The charity has elected to apply the provisions of Section 11 'Basic Financial Instiumenls. and Seclion 12 'Olher Financial In81rum8nls Issues, of FRS 102 to all of its financial inslTumenls. Financial inslrumenls are recognised in Ihe charitvs balance sheet when the charily becomes party lo Ihe conlraclual provlsions of the inslrumenl. Financial assets and liabilllies are offset, with the net amounts prgsentod In the Ilnanclal stalemenls, when Ihere is a legally enforceable right lo sel ofl Ihe recognised amounts and there is an inlenlion lo sellle on a nel b891s or lo realise the 8s$el and sèllle the Ilablllly slmullaneously. Basle flnanclal assets Basic financial assets, which include debtors and cash and bank balances, are initially m8asured al transactlon pricè Ineludlng trdnsaclion costs and are subsequently carrièd al amDriised cost using the èffective interest method unless Ihe arfangemenl conslilutes a financing Iransaclion, where the Iran5aclitsn É¥ measured al the presènt value of the fulure receipls discounled at a market ratè of interest. Financlal a55ets classified as receivable wilhin ono year are not amortised. 8aslc flnanclal Ilabllltles Baslc flnan¢lal Ilabllllle8, In¢ludlng credllors anil bank loans are Initially recognlsad al transactlon prica unless the afrangemenl constilules a finan¢ing Iransaclion. wher¢ Ihe debt instrument is measured at the present value of the fulure payments discounle¢J al a market rale of interest. Financial liabililies classified as payable wllhln on8 year are not amortlsod. Debt instruments are subsequently carried al amortised co$L using the effective interest rale method. Trade crodilors are obllgalions lo pay for goo(Js or SQ￿CeS Ihal have been a¢qulred in the ordlnary course of operations from suppliers. Amounts payable are dassified as cuirenl liabilities if payment 18 due wilhin one year or less. If not, they are presented as non-currenl liabilllies. Trade credllors are iècognised initially al Iransadlon pri¢9 and subsequenuy mga$ured al amortised cost using the eff8cliv@ inlerast method. Dere¢ognition of finan¢l41 Ilabllllle$ Fin8nci81 liabililias ar8 d8recognised when the charfty's conlraclual obllgalions explre or are discharged or cancelled. 3.10 Taxatlon Thè eharlty is èx8mpt from eorporalion lax on its charitable activities. 3.11 Employ09 benefit8 Tho wsl of any unused holiday onllllemont Is r¢cognlsed in the period In ￿1¢￿ the employee's servSGes are received. Termlnallon benefits ar6 recognised Immedialely as an expense when th8 charity is demonstrably commilled lo lerminale the employment of an employee or to provide termination benefits. 3.12 R•tlrem•nt b•nèflts PBymenl8 lo dgfined conlribulion reliremenl benefit schemas are charged as an exp8ns8 as they lall due. 3.13 L¢a$&¥ Rentals payable under opèrallng leases. Including any lease incentives received. are charged as an expense on a straight line basis over the leTm ol the relevant lease. 12 THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 Donatlons and lèga¢lo$ Unr•$trl¢ted Unreslrlcled funds funds 2021 2020 Donatlons and gifts Membershlp fees 281.642 37,685 33,651 33,651 319,327 Other tradlng activitie Unreslrictgd Unreslii¢led lunds funds 2021 2020 Confer¢n¢es and events 30,406 90.302 Investments Unreslrlcted UnreslrScled funds funds 2021 2020 Divldends and inteTest earr 15,047 18,110 other Incomo Unrestrlclod Unreslricled funds lunds 2021 2020 Manag8FTienl charges Corporale- other inwme 78,582 4.100 124,344 35,627 82.682 159,971 13- THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 Governance costs 2021 2020 Indtrpendenl Examiners, fe8S Accountancy services Coun(Al members, expenses and meeting costs 1.560 1,655 1.520 1.600 6.834 3,215 9,954 Analy8ed b01ween Charitable activities 3,215 9,954 Tru$tee$ None of the trus18es lor any persons connected with Ih8m) received any remuneralton or benelils Irom the charity during the year. Truslees wer& r8imbur89d travel gxponse$ of£NII during th8 year12020.' £6,834}. 10 Employees The average monthly number of employees during the year was: 2021 Numbèr 2020 Numbèr Employment Costs 2021 2020 Wages and salarlès Social security costs Olher penslon cosls 186,842 17,927 21,397 227,031 22.014 20,263 226,166 269,308 The key management personnèl of the charity comprise Ihe Iru8tees and the Chitsf Execullve Offlcer. Tho toial gmployoe b?nolSts of the key monagem8nt p$rsonn81 of tho charity w8re £78.632 (2020.. £79.6151. Tho number of employees whose annual remuneratlon was £60,000 or mora wer8.. 2021 Number 2020 Number £70,001-£80,(XIO 14- THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 11 Net gainsl{lossesl on Investments Unrestrlcted Unre8lricled funds funds 2021 2020 Revaluation ol inveslmenls 100,794 174,317) 12 Tanglbl8 flxed Fixturés and fllllnu5 Computers Total Cost AI 1 Apfil 2020 Additions Dlsposals 45,496 64,944 2,537 138,6551 {61,836) 110,440 2,537 1100,491) Al 31 March 2021 6.841 5,645 12,486 Depreclatlon and Impalmient Al 1 April 2020 Depreciation charged In the year Eliminalgd In iespecl of dlsposals 44,679 63,051 422 1,208 138.5821 {81.7251 107,730 1,630 {100.287) Al 31 March 2021 6,539 2.534 9,073 Carrying amount Al 31 March 2021 302 3,111 3,413 Al 31 March 2020 818 1.892 2,710 13 Flxed assèt Invo$tmont¥ 15 THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 13 FIx8d asset Inv•stm•nts (Continuodl Liste Inv9Stmont$ Cash in Olh¥r poitfollo Invo$tments Total Cost or valuatlon Al l April 2020 DISp￿alS 461.240 1.4231 1,252 11141 462.493 11.5371 At 31 March 2021 459.817 1,138 460,956 Impalrment Al 1 Aprll 2020 Revalualion adluslments (100,7951 (100,795} At 31 Malch 2021 (100,7951 1100,795) Carrylng amount Al 31 March 2021 560.612 1.138 569.751 At 31 March 2020 461,240 1,252 462,493 2021 2020 Other inveslrner)Is comprise- Not85 Inve$tmenl$ Sn $ub8idlarie$ 14 14 Subsldlarle$ These financial slalemenls are 8eparate charity financial slatgments for The Royal Association of British Dairy Farmers. Details of the charlly's sub8idlari8$ al 31 March 2021 aro as follows: N8m• of undertakln9 Reglstered offlco Naturè of bu$inès$ Cla$$ ¢f shares held 'A Hold Dlrecl Indlrect Events Foryou Limiled The Stables, Church Walk. Davenlry, NN11 48L Holding of events Ordinary 1(Kl.00 Nam8 of undèrtaklng ProflV{Lo$$l C8pStal and Reserves Turnovér Expandllur& Evonls For You Limlled 102,015 1102,015} 16. THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 15 Debtors 2021 2020 Amounts falllng duo wllhln ong ygar.. Amounts owéd by fallow group undertakings Other debtors Prepayments and accrugd income 125,396 3,600 5,758 259,126 9,057 13.989 134,754 282,172 16 Credltors: amounts falllng due withln one year 2021 2020 Notè$ Income re¢elved In 8dvan¢9 Trade creditors Accrued expenses 12,346 12,793 5,094 12.887 9.727 10,212 30,233 32,826 17 Retirement bengf5t schemes Deflned contrlbullon schemos The charlly operates a deflned ¢onlfSbulSon penslon scheme for all qualifying employ8es. The assets of the scheme are held separately from those of the charity in an independently adminlstered fund. The charge lo profit or loss in r&sp&cl of dèllnèd conlrlbulldn sch8mÈs was £21,39712020- £20,263). 18 Unrestrletèd funds These ère endowmtsnl funds lunds which ale material lo the charills acllvilies made up as follows: Movement In funds Incornln9 Resources Rgvaluatlonts. BalaneB ai 31 Tosourcè$ expended u3ln5 and March 2020 Balancè at 1 APTII 2019 unrèslricled funds 808,195 587,710 1426,644} (74,3171 894,944 Mov8mènt In funds In¢omlng Ro$our¢8s R•voluatlon$, Balan¢6 at résour¢¥$ txpondèd y*ln¥ and 31 Mareh 2021 BalAnCO al 1 Aprll 2020 unreslrfcled furKIs 894.944 161.786 {320.084) 100,794 837.440 17- THE ROYAL ASSOCIATION OF BRITISH DAIRY FARMERS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 19 Analysls of nèt a$Èèt8 botweèn funds Unrgstrlct8d Unrestrlded funds funds 2021 2020 Fund balances al 31 March 2021 are represented by.. Tangible assets Inveslments Current ass8lsllli8bllltlesl 3,413 561,751 272,277 2,710 462,493 429,741 837,441 894,944 20 Operating 1ga59 cornmltments At the reportlng end dale thè charity had oulstandlng commitmenls for future minimum lease payments under non-can¢ellablg operating leases, which fall due as follows.. 2021 2020 Vvilhin one year Between Iwo and fiv@ years 18,Ot)O 49.500 67,500 21 COVID-19 COVID-19 has had a negalive impact on the current economic climate and it'g significant e¢onoml¢ impact has beon considered when preparing the year @nd accaunts. 22 Ralated party tran$a¢tions Transactions wlth related partS6$ P J Alvis, J Brierley, D R Wastenage who are Iruslees of The Rgyal Association of Brlllsh Dairy Farn)ors IRABDF} Brè also dire¢lors of Evenls For You Limited. RABDF also holds 100tsA of the shares in Events For You Limited. Included in management charg05 incowne is £78,58212020.' £124.3441 ¢harged to Events For You Limited for expenses incurred on behalf of Ihe company. Events For You Limited gifted its laxable surplus for th year of £Nil12020= £281,642) lo RABDF. 18- Chartered Accountants The Stables, Church Walk, Daventry, Northants NN11 4BL Telephone: (01327) 879090 Facsimile: (01327) 300829 E-mail: daventry@cottonsllp.com www.cottonsllp.com _Also at:_ **LONDON - 0203 487 1107 NORTHAMPTON - (01604) 632116 RUGBY - (01788) 579033** Cottons is the trading name of Cottons Accountants LLP a limited liability partnership Registered Number: OC355206 (England & Wales) Registered Office: The Stables, Church Walk, Daventry, Northants, NN11 4BL Registered to carry on audit work in the UK and Ireland and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales.