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2024-06-30-accounts

THE HEREFORD CATTLE SOCIETY

Statement of Accounts, Balance Sheet and Annual Report FOR THE YEAR ENDED 30 JUNE 2024

Notice of the

ANNUAL GENERAL MEETING

NOTICE IS HEREBY GIVEN that the ANNUAL GENERAL MEETING of Members of this Society will be held at the Society's Offices, Hereford House, 3 Offa Street, Hereford on Tuesday 12 November 2024 at 9.00 a.m.

A G E N D A

  1. To confirm the minutes of the Annual General Meeting held on 14 November 2023

  2. To approve the statement of accounts, balance sheet and council's report for the year ended 30 June 2024.

  3. To appoint Thorne Widgery, chartered accountants and auditors to the society for the ensuing year and to authorise the council to fix their remuneration.

  4. To transact any other business permissible at the Annual General Meeting.

Dated this the 10 September 2024 by order of the council.

Paul Sneyd, Director of Operations

Registered Office: Hereford House, 3, Offa Street, Hereford, HR1 2LL. Registered Charity No: 217428 Company Registered No: 12100

REGISTERED COMPANY NUMBER: 00012100 (England and Wales) REGISTERED CHARITY NUMBER: 217428

Report of the Trustees and Financial Statements for the Year Ended 30 June 2024

for The Hereford Cattle Society

Thorne Widgery Accountancy Ltd Chartered Accountants Statutory Auditors 2 Wyevale Business Park Kings Acre Hereford Herefordshire HR4 7BS

The Hereford Cattle Society

Contents of the Financial Statements for the Year Ended 30 June 2024

Page
Report of the Trustees 1 to 5
Report of the Independent Auditors 6 to 9
Statement of Financial Activities 10
Balance Sheet 11 to 12
Cash Flow Statement 13
Notes to the Cash Flow Statement 14
Notes to the Financial Statements 15 to 26
Detailed Statement of Financial Activities 27 to 28

The Hereford Cattle Society

Report of the Trustees for the Year Ended 30 June 2024

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 30 June 2024. The trustees have adopted the provisions of 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 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The Society is established to maintain unimpaired the purity of, and improve the breed of, cattle known as Herefords and to promote impartially the breeding of all the various tribes, families and strains of such cattle.

The Society's promotional activities during the year have been aimed at developing the market for pedigree and commercial Hereford cattle and building increased awareness of the Hereford beef brand to consumers.

To achieve its objectives, the Society has participated in numerous promotional events throughout the country.

The Society this year has adopted linear scoring which provides an independent assessment of cows in your herd reviewing strengths and weaknesses to enhance longevity, health & welfare.

The Society's plans for the future are to continue the promotion and expansion of the breed both domestically and internationally.

Public benefit

The trustees consider that they have complied with the duty in section 4 of the Charities Act 2011, in having due regard to public benefit.

In this regard, the Society implements Breed Improvement Schemes to facilitate the economic and efficient production of beef, constantly taking into consideration eco friendly systems of extensive food production using, whenever and wherever possible, natural resources.

The Hereford is a Breed renowned internationally for its ability to utilise natural grazing areas of the World to produce high quality beef economically. The Society will continue to promote this aspect of the Breed so as to increase its use with the aim of assisting the farming industry to meet the extremely challenging financial constraints put upon them in the current period of austerity.

Page 1

The Hereford Cattle Society

Report of the Trustees for the Year Ended 30 June 2024

STRATEGIC REPORT

Achievement and performance

Having served on council for many years the challenges remain, and I feel the next 5 - 10 years will probably see the biggest changes in Agriculture that we have ever seen particularly in the beef industry. This year we have seen registrations decrease which is not just unique to us as a breed but also across other breeds.

In the last financial year costs have increased dramatically and, at the same time, our income has reduced, this inevitably makes for some tough decisions ahead. The council are very aware of how tight money is for members with no fees having been increased.

During the last financial year, we have continued to deliver on our core objectives, but it is disappointing to have to report on our expenditure for legal fees due to circumstances out of our control and leading to the Society making a loss.

The Council

As Chairman of council, I wish to express my sincere thanks to all council members for their support and dedication, none more so than your President Allen Massey. Council members as trustees of the Society freely give up their time and energy for the benefit of all members. We continue to have just under 1400 members with around 911 of those being active Hereford Pedigree breeders. In 2023 we also saw Hereford x sired progeny increase by 6% where other breeds particularly some of the continentals have seen a decrease. I wrote to you in July to inform you that a resolution had been passed by the board of Directors on 27 June 2024. The legal fees in doing this and which were out of the society's control were £77,000.

The Chairman would like to thank staff on behalf of the membership as we complete another 12 months of activities and a special thanks to our staff, Paul, Beverley, Tracey and Naomi for ensuring the smooth running of the society.

Financial Report

The income from Charitable activities was £578,424 compared with £614,681 (30.6.23) of which all is incoming resources of unrestricted funds. As has already been mentioned we have seen a huge increase in legal fees from £29,704 to £101,474 which has made the year extremely challenging. The legal fees for the resolution that was passed on the 27th June 2024 have been covered from the society's investment fund.

Overall, our revenues are down by £36,162 with the largest drop being the registration income of £20,000.

Some areas such as rates, water and electricity year on year have risen significantly which has also made the financial year challenging.

We have made savings in regard to shows and breed promotion circa £20k by doing things slightly differently but having not dropped any of our commitments from the plan.

It is also worth noting that our balance sheet remains strong allowing the society to continue to support the membership where possible in terms of costs.

With all these challenges we kept members fees and all other society fees unchanged meaning we have continued to support member services by circa £40,000.

Financial review

Investment policy and objectives

Council uses its investment advisors to meet its requirements, which is to generate income. This has been achieved with a mix of equity and fixed return investments. Council is satisfied with the returns achieved given current market conditions.

Page 2

The Hereford Cattle Society

Report of the Trustees for the Year Ended 30 June 2024

STRATEGIC REPORT Financial review

Reserves policy

It is the policy of the charity to maintain unrestricted funds at a level, which equate to approximately 12 months unrestricted expenditure. The trustees consider that the ideal level of reserves as at 30 June 2024 would be £500,000. This provides sufficient funds to cover management and administration and support costs. Unrestricted funds are maintained at least at this level throughout the year.

The financial results for the charity are as detailed in the statement of financial activity on page 11 and the balance sheet on page 12. The charity total assets of £1,528,025 (2023 - £1,587,403). All funds are unrestricted with the exception of £2,905 restricted for UKHY. But all other funds are available for the general purposes of the society.

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

The Society is a company limited by guarantee and not having a share capital. As such it is governed by its Memorandum and Articles of Association. It was incorporated on 5 March 1878. It is registered as a charity with the Charity Commission.

Appointment & Training of Council Members

A Council of 16 members is elected by the general membership at 4 yearly intervals and meet with the Director of Operations regularly. The Council make all policy decisions. The Director of Operations is responsible for carrying out these policies and for all office administration procedures.

Council Members must, at the time of their election, be actual breeders of Hereford Cattle (as defined in the Memorandum and Articles) and are elected on an area basis.

As and when new Council Members (Trustees) are elected, they are provided with all appropriate guidelines for the trusteeship. They are made aware of their legal obligations under charity and company law, and the Charity Commission guidance on public benefit. They are informed of the content of the Memorandum and Articles of Association, decision-making processes and the recent financial performance of the Society. None of the Council Members receive remuneration or other benefit from their work with the Society.

Pay Policy for Senior Staff

The pay of all staff is reviewed annually and normally increased in accordance with average earnings. All pay awards are approved at Council meetings.

Risk Management

The Council Members actively review the major risks, which the charity faces on a regular basis and believe that maintaining reserves at current levels, combined with an annual review of the controls over key financial systems, will provide sufficient resources in the event of adverse conditions.

The Council Members have also examined other operational and business risks faced by the charity and confirm that they have established systems to mitigate the significant risks.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 00012100 (England and Wales)

Registered Charity number

217428

Registered office

Hereford House 3 Offa Street Hereford HR1 2LL

Page 3

The Hereford Cattle Society

Report of the Trustees for the Year Ended 30 June 2024

Trustees Council Members The Council members during the year were: Mr P J Allman (Chairman) Mr M J Clark - resigned 31.12.23 Mrs J Cooper Mrs S Cowle Mr J Graham - resolution passed 27.06.24 by council and no longer a member Mr G Harvey Mr J Hodge - resigned 31.12.23 Mr M Jenkins (Vice Chairman) Mr A Jones - resigned 31.12.23 Mrs A Kerslake - resigned 31.12.23 Mr D Makin - elected 01.01.24 Mr A J Massey Mr C Roberts - resigned 31.12.23 Mr M Shaw Mr D Smyth - resolution passed 27.06.24 by council and no longer a member Miss E N Thorne Mr G Wood - resigned 31.12.23

President Mr A J Massey

The president is elected annually by Council.

Vice President Mr S Edwards

Director of operations Mr P Sneyd

Key Management Mr P Sneyd Miss L Bowyer - Resigned July 2023 Ms T Thomas Mrs B Turner Mrs N Williams-Roberts - Commenced July 2023

Auditors Thorne Widgery Accountancy Ltd Chartered Accountants Statutory Auditors 2 Wyevale Business Park Kings Acre Hereford Herefordshire HR4 7BS

Solicitors

T A Matthews & Co First Floor Broadway House 32 - 35 Broad Street Hereford HR4 9AR

Page 4

The Hereford Cattle Society

Report of the Trustees for the Year Ended 30 June 2024

REFERENCE AND ADMINISTRATIVE DETAILS Bankers

Natwest 12 Broad Street Hereford HR4 9AH

Investment Advisors

Canaccord Genuity Wealth Management 41 Lothbury London EC2R 7AE

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of The Hereford Cattle Society for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

AUDITORS

The auditors, Thorne Widgery Accountancy Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on ............................................. and signed on the board's behalf by:

..................................................... P Allman - Trustee

Page 5

Report of the Independent Auditors to the Trustees of The Hereford Cattle Society

Opinion

We have audited the financial statements of The Hereford Cattle Society (the 'charitable company') for the year ended 30 June 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the 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 (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company 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 charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Page 6

Report of the Independent Auditors to the Trustees of The Hereford Cattle Society

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Page 7

Report of the Independent Auditors to the Trustees of The Hereford Cattle Society

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Fraud and breaches of laws and regulations - ability to detect

Identifying and responding to risks of material misstatement due to fraud

To identify risks of material misstatement due to fraud ("fraud risks") we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:

o Enquiring of council members, management and inspection of policy documentation as to the Charity's high-level policies and procedures to prevent and detect fraud as well as whether they have knowledge of any actual, suspected or alleged fraud.

o Reading Council Members' meeting minutes. o Considering performance targets for management.

We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit.

As required by auditing standards, and taking into account our overall knowledge of the control environment, we perform procedures to address the risk of management override of controls, in particular the risk that management may be in a position to make inappropriate accounting entries. On this audit we do not believe there is a fraud risk related to revenue recognition because the revenue is non-judgemental and straightforward, with limited opportunity for manipulation.

We did not identify any additional fraud risks. We performed procedures including identifying journal entries to test based on risk criteria and comparing the identified entries to supporting documentation. These included those posted by finance management/ those posted and approved by the same user/ those posted to unusual accounts.

Identifying and responding to risks of material misstatement due to non-compliance with laws and regulations

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with management (as required by auditing standards) and discussed with management the policies and procedures regarding compliance with laws and regulations.

We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the Charity is subject to laws and regulations that directly affect the financial statements including financial reporting legislation, taxation legislation, the Charities Act legislation and guidance issued by DEFRA and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Page 8

Report of the Independent Auditors to the Trustees of The Hereford Cattle Society

Secondly, the Charity is subject to many other laws and regulations where the consequences of noncompliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation or the loss of the Charity's license to operate. We identified the following areas as those most likely to have such an effect: health and safety, anti-bribery, employment law, data protection, anti-money laundering and specific areas of other legislation recognising the nature of the Charity's activities.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of management, inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.

Context of the ability of the audit to detect fraud or breaches of law or regulation

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.

In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

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 Report of the Independent Auditors.

Use of our report

This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

for and on behalf of Thorne Widgery Accountancy Ltd Chartered Accountants Statutory Auditors Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 2 Wyevale Business Park Kings Acre Hereford Herefordshire HR4 7BS

Date: .............................................

Page 9

The Hereford Cattle Society

Statement of Financial Activities for the Year Ended 30 June 2024

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Charitable activities
4
Furtherance of the breed
Investment income
3
Other income
Total
EXPENDITURE ON
Raising funds
5
Charitable activities
6
Furtherance of the breed
Total
Net gains/(losses) on investments
NET INCOME/(EXPENDITURE)
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
5,000
578,424
62,578
64,469
710,471
3,506
783,365
786,871
17,022
(59,378)
1,584,498
1,525,120		 Restricted
fund
£
-
-
-
-
-
-
-
-
-
-
2,905
2,905		 30.6.24
Total
funds
£
5,000
578,424
62,578
64,469
710,471
3,506
783,365
786,871
17,022
(59,378)
1,587,403
1,528,025		 30.6.23
Total
funds
£
5,000
614,681
64,583
62,369
746,633
3,530
770,248
773,778
(20,951)
(48,096)
1,635,499
1,587,403

The notes form part of these financial statements

Page 10

The Hereford Cattle Society

Balance Sheet 30 June 2024

Notes
FIXED ASSETS
Tangible assets
14
Heritage assets
15
Investments
Investments
16
Investment property
17
CURRENT ASSETS
Stocks
18
Debtors
19
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
20
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
NET ASSETS
FUNDS
21
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Unrestricted
funds
£
56,401
382,050
691,044
375,000
1,504,495
6,890
55,160
24,135
86,185
(65,560)
20,625
1,525,120
1,525,120		 Restricted
fund
£
-
-
-
-
-
-
-
2,905
2,905
-
2,905
2,905
2,905		 30.6.24
Total
funds
£
56,401
382,050
691,044
375,000
1,504,495
6,890
55,160
27,040
89,090
(65,560)
23,530
1,528,025
1,528,025
1,525,120
2,905
1,528,025		 30.6.23
Total
funds
£
58,459
382,050
641,771
375,000
1,457,280
6,890
69,837
104,000
180,727
(50,604)
130,123
1,587,403
1,587,403
1,584,498
2,905
1,587,403

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 June 2024.

The members have not deposited notice, pursuant to Section 476 of the Companies Act 2006 requiring an audit of these financial statements.

The trustees acknowledge their responsibilities for

These financial statements have been audited under the requirements of Section 145 of the Charities Act 2011.

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:

The notes form part of these financial statements

continued...

Page 11

The Hereford Cattle Society

Balance Sheet - continued 30 June 2024

............................................. P Allman - Trustee

............................................. M Jenkins - Trustee

The notes form part of these financial statements

Page 12

The Hereford Cattle Society

Cash Flow Statement for the Year Ended 30 June 2024

30.6.24
Notes
£
Cash flows from operating activities
Cash generated from operations
1
(76,459)
Net cash used in operating activities
(76,459)
Cash flows from investing activities
Purchase of tangible fixed assets
(813)
Purchase of fixed asset investments
(273,498)
Sale of fixed asset investments
241,247
Dividends received
32,563
Net cash (used in)/provided by investing activities
(501)
Change in cash and cash equivalents in
the reporting period
(76,960)
Cash and cash equivalents at the
beginning of the reporting period
104,000
Cash and cash equivalents at the end of
the reporting period
27,040		 30.6.23
£
(116,665)
(116,665)
-
(92,887)
123,291
34,423
64,827
(51,838)
155,838
104,000

The notes form part of these financial statements

Page 13

The Hereford Cattle Society

Notes to the Cash Flow Statement

for the Year Ended 30 June 2024

1. RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net expenditure for the reporting period (as per the Statement of
Financial Activities)
Adjustments for:
Depreciation charges
(Gain)/losses on investments
Dividends received
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Net cash used in operations		 30.6.24
£
(59,378)
2,871
(17,022)
(32,563)
14,677
14,956
(76,459)		 30.6.23
£
(48,096)
3,415
20,951
(34,423)
(7,618)
(50,894)
(116,665)

2. ANALYSIS OF CHANGES IN NET FUNDS

At 1.7.23 Cash flow At 30.6.24
£ £ £
Net cash
Cash at bank and in hand 104,000 (76,960) 27,040
104,000 (76,960) 27,040
Total 104,000 (76,960) 27,040

The notes form part of these financial statements

Page 14

The Hereford Cattle Society

Notes to the Financial Statements for the Year Ended 30 June 2024

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.

The Society meets the definition of a public benefit entity under FRS 102.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

Going Concern

The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the company to continue as a going concern. The trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the company has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the company's ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

The company has considered the effects of the current economic climate on their financial future and are confident there will be no significant effect on them continuing as a going concern. A 5 year strategic plan has been established to focus on future sustainability.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Allocation and apportionment of costs

Support costs are those functions that assist the work of the Society but do not directly undertake charitable activities. Support costs include governance costs which support the Society's activities. Support costs are allocated on an appropriate basis according to activity.

Intangible fixed assets

Intangible fixed assets are amortised evenly over their estimated useful lives. Trade Mark - 5 years Breedplan - 3 years

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation. Items are capitalised where the acquisition cost exceeds £1,000.

continued...

Page 15

The Hereford Cattle Society

Notes to the Financial Statements - continued for the Year Ended 30 June 2024

1. ACCOUNTING POLICIES - continued

Tangible fixed assets

Depreciation is provided on all tangible fixed assets, except those described below, at rates calculated to write off the cost, less residual value, of each asset over its expected useful life, as follows: Motor vehicles - 25% reducing balance

Office equipment - 25% / 20% / 10% reducing balance, 20% straight line

The Council carries out a continual programme of repairs and maintenance to its freehold buildings, the cost of which is charged to the statement of financial activities. In the opinion of Council, the useful economic life of the freehold buildings is in excess of 50 years, and the programme of repairs and maintenance holds their residual value at a level that a depreciation charge would not be material.

Heritage assets

Heritage assets include oil paintings and pictures. These are stated at valuation. No depreciation is provided in respect of oil paintings and pictures as, in the opinion of Council, their value increases over time and a depreciation charge would therefore not be appropriate.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the Statement of Financial Activities.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Donated goods

Donated goods are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102).

Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Society; this is normally upon notification of the interest paid or payable by the bank.

Debtors

Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid.

Creditors and provisions

continued...

Page 16

The Hereford Cattle Society

Notes to the Financial Statements - continued for the Year Ended 30 June 2024

1. ACCOUNTING POLICIES - continued

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in a transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.

Investment policy

Council uses its investment advisors to meet its requirements, which is to generate income. This has been achieved with a mix of equity and fixed return investments. Council is satisfied with the returns achieved given current market conditions.

Financial instruments

The Society 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.

Preparation of the accounts on a going concern basis

There are no material uncertainties about the Society's ability to continue. All of the Society's ability to continue. All of the Society's activities over the last 10 to 15 years have been on an upward trend and there is no indication that this will not continue. On this basis the Society is considered to be a going concern.

2. DONATIONS AND LEGACIES

DONATIONS AND LEGACIES
30.6.24 30.6.23
£ £
Donations 5,000 5,000

The income from donations and legacies was £5,000 (2023: £5,000) of which £5,000 was unrestricted (2023: £5,000).

3. INVESTMENT INCOME

Rents received
Dividends
INCOME FROM CHARITABLE ACTIVITIES
Activity
Membership income
Furtherance of the breed
Gift aid
Furtherance of the breed
Registration fees
Furtherance of the breed
Transfer fees
Furtherance of the breed
Beef scheme levies
Furtherance of the breed
Export fees
Furtherance of the breed
Sales and commissions
Furtherance of the breed
DNA testing
Furtherance of the breed
Herd prefix
Furtherance of the breed		 30.6.24
£
30,015
32,563
62,578
30.6.24
£
104,403
18,403
222,923
36,480
27,720
900
58,896
103,349
5,350
578,424		 30.6.23
£
30,160
34,423
64,583
30.6.23
£
110,614
18,743
242,083
35,116
24,596
904
68,015
110,093
4,517
614,681

4. INCOME FROM CHARITABLE ACTIVITIES

The income from charitable activities was £578,424 (2023: £614,681) of which all is incoming resources of unrestricted funds. £27,720 of Beef Scheme Levies was designated fund - breed improvement (2023: £24,596).The remainder being general fund within unrestricted funds.

continued...

Page 17

The Hereford Cattle Society

Notes to the Financial Statements - continued for the Year Ended 30 June 2024

5. RAISING FUNDS

Investment management costs
30.6.24
£
Portfolio management
3,506
6.
CHARITABLE ACTIVITIES COSTS
Grant
funding of
activities
Support
Direct
(see note
costs (see
Costs
7)
note 8)
£
£
£
Furtherance of the breed
667,421
3,250
112,694
7.
GRANTS PAYABLE
30.6.24
£
Furtherance of the breed
3,250
The total grants paid to institutions during the year was as follows:
30.6.24
£
Area Association Grant
3,250
8.
SUPPORT COSTS
Governance
Finance
costs
£
£
Furtherance of the breed
1,900
110,794
9.
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
30.6.24
£
Auditors' remuneration
5,292
Depreciation - owned assets
2,871		 30.6.23
£
3,530
Totals
£
783,365
30.6.23
£
4,059
30.6.23
£
4,059
Totals
£
112,694
30.6.23
£
4,803
3,415

continued...

Page 18

The Hereford Cattle Society

Notes to the Financial Statements - continued for the Year Ended 30 June 2024

10. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 30 June 2024 nor for the year ended 30 June 2023.

Trustees' expenses

Council Members Expenses

Expenses totalling £4,536.47 have been reimbursed to 7 Council Members for travel expenses (2023: £4,389.67 to 9 members).

11. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:		 30.6.24
£
201,710
17,711
3,659
223,080		 30.6.23
£
196,000
17,638
3,886
217,524
30.6.24 30.6.23
Administration 4 4

The key management personnel of the charity are listed under reference and administrative details. The total employee benefits that were received by the key management personnel in the year were £223,080 (2023: £217,524).The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 banded £90,000 - £100,000 was 1 (2023: banded £80,000-£90,000 was 1).

12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM
Donations and legacies
Charitable activities
Furtherance of the breed
Investment income
Other income
Total
EXPENDITURE ON
Raising funds
Charitable activities
Furtherance of the breed
Total
Net gains/(losses) on investments		 Unrestricted
funds
£
5,000
614,681
64,583
62,369
746,633
3,530
770,248
773,778
(20,951)		 Restricted
fund
£
-
-
-
-
-
-
-
-
-		 Total
funds
£
5,000
614,681
64,583
62,369
746,633
3,530
770,248
773,778
(20,951)

continued...

Page 19

The Hereford Cattle Society

Notes to the Financial Statements - continued for the Year Ended 30 June 2024

12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued

NET INCOME/(EXPENDITURE)
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
13.
INTANGIBLE FIXED ASSETS
COST
At 1 July 2023 and 30 June 2024
AMORTISATION
At 1 July 2023 and 30 June 2024
NET BOOK VALUE
At 30 June 2024
At 30 June 2023
14.
TANGIBLE FIXED ASSETS
COST
At 1 July 2023
Additions
At 30 June 2024
DEPRECIATION
At 1 July 2023
Charge for year
At 30 June 2024
NET BOOK VALUE
At 30 June 2024
At 30 June 2023		 Freehold
property
£
46,645
-
46,645
-
-		 Unrestricted
funds
£
(48,096)
1,632,594
1,584,498
Certified
trade
mark
£
3,966
3,966
-
-
Motor
vehicles
£
20,798
-
20,798
18,022
694		 Restricted
fund
£
-
2,905
2,905
Breedplan
setting
up costs
£
25,480
25,480
-		 Restricted
fund
£
-
2,905
2,905
Breedplan
setting
up costs
£
25,480
25,480
-		 Total
funds
£
(48,096)
1,635,499
1,587,403
Totals
£
29,446
29,446
-
-
Totals
£
223,841
813
224,654
165,382
2,871
168,253
56,401
58,459
-
Office
equipment
£
156,398
813
157,211
147,360
2,177
-
46,645
46,645		 18,716
2,082
2,776		 149,537
7,674
9,038

continued...

Page 20

The Hereford Cattle Society

Notes to the Financial Statements - continued for the Year Ended 30 June 2024

15. HERITAGE ASSETS

HERITAGE ASSETS
MARKET VALUE
At 1 July 2023 and 30 June 2024
NET BOOK VALUE
At 30 June 2024
At 30 June 2023		 Total
£
382,050
382,050
382,050

Revaluation

During December 2019 a revaluation of the Heritage Assets was performed by Brightwells Auctioneers and Valuers, Leominster. The result of the revaluation is reflected in these financial statements. A revaluation will be obtained in the 24/25 financial year.

16. FIXED ASSET INVESTMENTS

FIXED ASSET INVESTMENTS
Listed
investments
£
MARKET VALUE
At 1 July 2023 641,771
Additions 233,297
Disposals (224,225)
Revaluations 40,201
At 30 June 2024 691,044
NET BOOK VALUE
At 30 June 2024 691,044
At 30 June 2023 641,771
There were no investment assets outside the UK.
Cost or valuation at 30 June 2024 is represented by:
Listed
investments
£
Valuation in 2024 691,044

continued...

Page 21

The Hereford Cattle Society

Notes to the Financial Statements - continued

for the Year Ended 30 June 2024

17. INVESTMENT PROPERTY

INVESTMENT PROPERTY
FAIR VALUE
At 1 July 2023
and 30 June 2024
NET BOOK VALUE
At 30 June 2024
At 30 June 2023
Fair value at 30 June 2024 is represented by:
Valuation in 2024		 £
375,000
375,000
375,000
£
375,000

Investment Property relates to the car park located on East Street in Hereford. The most recent valuation was completed 23/03/2022 by Sunderlands.

18. STOCKS
30.6.24 30.6.23
£ £
Stocks 6,890 6,890
19. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.6.24 30.6.23
£ £
Trade debtors 41,157 56,474
Prepayments and accrued income 14,003 13,363
55,160 69,837
20. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.6.24 30.6.23
£ £
Trade creditors 59,639 26,458
VAT 2,555 11,171
Other creditors 583 731
Accruals and deferred income 2,783 12,244
65,560 50,604

continued...

Page 22

The Hereford Cattle Society

Notes to the Financial Statements - continued for the Year Ended 30 June 2024

21. MOVEMENT IN FUNDS

Unrestricted funds
General fund
Designated fund - Breed Improvement
Restricted funds
Restricted fund
TOTAL FUNDS
Net movement in funds, included in the above are
Unrestricted funds
General fund
Designated fund - Breed Improvement
TOTAL FUNDS
Comparatives for movement in funds
Unrestricted funds
General fund
Designated fund - Breed Improvement
Restricted funds
Restricted fund
TOTAL FUNDS		 as follows:
Incoming
resources
£
682,751
27,720
710,471
710,471		 At 1.7.23
£
1,284,926
299,572
1,584,498
2,905
1,587,403
Resources
expended
£
(783,990)
(2,881)
(786,871)
(786,871)
At 1.7.22
£
1,319,604
312,990
1,632,594
2,905
1,635,499		 Net
movement
in funds
£
(84,217)
24,839
(59,378)
-
(59,378)
Gains and
losses
£
17,022
-
17,022
17,022
Net
movement
in funds
£
(34,678)
(13,418)
(48,096)
-
(48,096)		 At
30.6.24
£
1,200,709
324,411
1,525,120
2,905
1,528,025
Movement
in funds
£
(84,217)
24,839
(59,378)
(59,378)
At
30.6.23
£
1,284,926
299,572
1,584,498
2,905
1,587,403

continued...

Page 23

The Hereford Cattle Society

Notes to the Financial Statements - continued for the Year Ended 30 June 2024

21. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Designated fund - Breed Improvement
TOTAL FUNDS		 Incoming
resources
£
722,037
24,596
746,633
746,633		 Resources
expended
£
(735,764)
(38,014)
(773,778)
(773,778)		 Gains and
Movement
losses
in funds
£
£
(20,951)
(34,678)
-
(13,418)
(20,951)
(48,096)
(20,951)
(48,096)

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General fund
Designated fund - Breed Improvement
Restricted funds
Restricted fund
TOTAL FUNDS		 At 1.7.22
£
1,319,604
312,990
1,632,594
2,905
1,635,499		 Net
movement
in funds
£
(118,895)
11,421
(107,474)
-
(107,474)		 At
30.6.24
£
1,200,709
324,411
1,525,120
2,905
1,528,025

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming
Resources
resources
expended
£
£
Unrestricted funds
General fund
1,404,788
(1,519,754)
Designated fund - Breed Improvement
52,316
(40,895)
1,457,104
(1,560,649)
TOTAL FUNDS
1,457,104
(1,560,649)		 Gains and
Movement
losses
in funds
£
£
(3,929)
(118,895)
-
11,421
(3,929)
(107,474)
(3,929)
(107,474)

Revaluation Fund

The revaluation fund is required by the Companies Act 2006 and represents the following: £228,450 - the amount by which fixed assets stated at a valuation exceed their historical cost. £373,100 - the amount by which investment property valuation exceeded its historical cost. These are included within General fund.

Designated fund - Breed Improvement

This designated fund represents income received from beef scheme levies which is used for the promotion of schemes which aim to improve the breed.

Restricted Fund

continued...

Page 24

The Hereford Cattle Society

Notes to the Financial Statements - continued for the Year Ended 30 June 2024

21. MOVEMENT IN FUNDS - continued

UKHY Bursary Received in YE 30.06.2020 to be spent in financial year 24/25.

22. CONTINGENT LIABILITIES

There is currently a potential claim against the Society by two Society members who have instructed solicitors. At present no Court claim has been issued and we do not know the legal position of the claim or any potential liability that may arise.

23. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 30 June 2024 (or year ended 30 June 2023).

24. GUARANTEE

The Society is a company limited by guarantee and has no share capital. Members of the Society guarantee to contribute an amount not exceeding £5 to the assets of the Society in the event of a winding up in the time that they are members, or within one year of ceasing to be a member. The total number of such guarantees at 30 June 2024 was 1,374 (2023: 1,357)

25. MEMBERSHIP

Northern Ireland
Scotland
Wales
North of England
South of England
South West of England
Midlands and East Anglia
West Midlands
Overseas		 Number of
Members2024
140
75
247
209
103
161
176
243
20
1,374		 Number of
Members 2023
145
73
249
202
106
157
154
251
20
1,357

NUMBER OF NEW MEMBERS ELECTED

2014/2015 133 Members
2015/2016 135 Members
2016/2017 102 Members
2017/2018 118 Members
2018/2019 89 Members
2019/2020 113 Members
2020/2021 107 Members
2021/2022 104 Members
2022/2023 74 Members
2023/2024 78 Members

continued...

Page 25

The Hereford Cattle Society

Notes to the Financial Statements - continued for the Year Ended 30 June 2024

26. DETAILED PROFIT AND LOSS ACCOUNT

Turnover
Administrative Expenses
Other Operating Income
Operating (Loss)/Profit
Investment Income
Profit on Ordinary Activities Before Taxation
Profit on Disposal of Investments
Trading Profit for the Financial Year		 2024
£
578,424
(786,871)
99,484
(108,963)
32,563
(76,400)
(23,179)
(99,579)		 2023
£
614,681
(773,778)
97,529
(61,568)
34,423
(27,145)
1,658
(25,487)

RECONCILIATION OF PROFIT AND LOSS ACCOUNT TO STATEMENTOF FINANCIAL ACTIVITIES

Trading Profit for the Financial Year
Profit (Loss) on revaluation of investment property
Profit (Loss) on revaluation of listed investments
Net Movement in Funds		 2024
£
(99,579)
-
40,201
(59,378)		 2023
£
(25,487)
-
(22,609)
(48,096)

Page 26

The Hereford Cattle Society

Detailed Statement of Financial Activities for the Year Ended 30 June 2024

Detailed Statement of Financial Activities
for the Year Ended 30 June 2024
30.6.24 30.6.23
£ £
INCOME AND ENDOWMENTS
Donations and legacies
Donations 5,000 5,000
Investment income
Rents received 30,015 30,160
Dividends 32,563 34,423
62,578 64,583
Charitable activities
Membership income 104,403 110,614
Gift aid 18,403 18,743
Registration fees 222,923 242,083
Transfer fees 36,480 35,116
Beef scheme levies 27,720 24,596
Export fees 900 904
Sales and commissions 58,896 68,015
DNA testing 103,349 110,093
Herd prefix 5,350 4,517
578,424 614,681
Other income
Rental income 64,469 62,369
Total incoming resources 710,471 746,633
EXPENDITURE
Investment management costs
Portfolio management 3,506 3,530
Charitable activities
Wages 201,710 196,000
Social security 17,711 17,638
Pensions 3,659 3,886
Rates and water 11,267 6,475
Premises & Health Insurance 8,892 8,050
Light and heat 33,387 24,699
Telephone 2,716 3,586
Postage and stationery 19,411 19,076
Shows & Breed Promotion 177,208 197,898
Sundries 11,485 4,229
Cleaning 11,568 11,222
Vehicle expenses 3,468 2,877
Travelling expenses 22,972 16,538
DNA testing 80,710 111,226
Repairs and maintenance 24,429 19,074
Carried forward 630,593 642,474

This page does not form part of the statutory financial statements

Page 27

The Hereford Cattle Society

Detailed Statement of Financial Activities

for the Year Ended 30 June 2024

Detailed Statement of Financial Activities
for the Year Ended 30 June 2024
30.6.24 30.6.23
£ £
Charitable activities
Brought forward 630,593 642,474
Breed improvement scheme 2,881 3,014
Breedplan costs 16,521 17,628
Subscriptions 1,412 1,854
Transfer of beef scheme levies to N.I. - 35,000
Transfer of semen 13,143 15,393
Donations - 7,222
Depreciation of tangible fixed assets 2,871 3,415
Grants to institutions 3,250 4,059
670,671 730,059
Support costs
Finance
Bank charges 1,900 1,967
Governance costs
Auditors' remuneration 5,292 4,803
Accountancy fees 4,028 3,715
Legal and professional fees 101,474 29,704
110,794 38,222
Total resources expended 786,871 773,778
Net expenditure before gains and losses (76,400) (27,145)
Realised recognised gains and losses
Realised gains/(losses) on fixed asset
investments 17,022 (20,951)
Net expenditure (59,378) (48,096)

This page does not form part of the statutory financial statements

Page 28