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2020-12-31-accounts

Charity Registration No. 222014

Company Registration No. 1017832 (England and Wales)

THE WELSH PONY AND COB SOCIETY

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

THE WELSH PONY AND COB SOCIETY

CONTENTS

Page
Trustees report 1 - 10
Statement of trustees responsibilities 11
Independent auditor's report 12 - 14
Statement of financial activities 15
Balance sheet 16 - 17
Statement of cash flows 18
Notes to the financial statements 19 - 37

THE WELSH PONY AND COB SOCIETY

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees present their report and financial statements for the year ended 31 December 2020.

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the financial statements and comply with the charity's governing document, the Companies Act 2006 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 2019)".

Objectives and activities

The objectives of the Society are to encourage the breeding, improvement and integrity of the Welsh Breeds of horses and ponies; advance public education of management of the Welsh Breeds; to prevent cruelty to horses and ponies; to provide and assist in provision for public benefit, facilities for recreation and other leisure time through use of horses but confined to facilities provided in the interests of social welfare. In order to further these aims the Society undertakes a number of core activities.

The Society is obliged to compile and publish stud books of registered pure and part-bred Welsh Ponies and Cobs, which is done on a regular basis. In recent years, this has been combined with its role as a Passport Issuing Organisation (PIO) and registration of equine is through its comprehensive registration processes.

Information and assistance is provided to members and non-members in person, via telephone, email, the website and fax. In addition, members receive an annual Journal. The Society also publishes a variety of literature on the Welsh Breed and provides a website that is accessible to members and non-members, with an active Facebook page and Twitter account.

The Society has a programme of grants to provide direct financial assistance to members of other voluntary groups working with similar objectives. It also administers a bursary scheme for young individuals pursuing qualifications within the equine world. The awards are formally reviewed annually by Council to ensure that it continues to meet those needs.

The Society also has an equine welfare advice and guidance scheme in place.

The aims of the charity are detailed below:

The charity's strategies for achieving its stated aims and objectives is to:

THE WELSH PONY AND COB SOCIETY

TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees have considered the Charity Commission’s guidance on public benefit, including the guidance ‘public benefit: running a charity (PB2)’when reviewing our aims and objectives and in planning our future activities. Trustees were provided with copies of the revised publications relating to public benefit. Trustees consider how planned activities will contribute to the aims and objectives they have set.

Public benefits applicable to the charity’s activities include:

The significant activities undertaken by the charity which contribute to its stated aims and objectives are:

Education and Welfare – fostering and encouraging the acquisition of knowledge and dissemination of best practise regarding the management and welfare of ponies, cobs, part-bred and equine in general; publicising and communicating the education and welfare by all means possible.

Members Services -The development and growth of membership to the Society, maintaining the integrity of the Welsh Stud Book and Overseas Register. Production of an annual Stud Book and 5 yearly Index. Supervision of Young People’s Committee activities. Organising and appointing Young Ambassador Elect and Young Achiever on an annual basis.

Promotions – raising the profile of equines and ensuring that legislators and regulators are aware of what the Society is thinking, providing a media approach in relation to equine across all media outlets, and informing the public as to what the Society is developing.

Judging and Showing – judges assessment and conferences, ensuring judges uphold the integrity and good standing of the Society and exploring their continuing professional development, providing a clear written rule book each year.

Members of the Society served as trustees, served as directors of the Society’s subsidiary WPCS Trading Limited, organised the points competition for performance animals and the Performance show, organised the Young Judges competition, organised the Judges’ Assessment Day, wrote articles for the press and published events, investigated welfare cases, advised on veterinary issues with the assistance of the Society’s Hon Veterinary Officer Mr Roland Michell MRCVS, organised affiliated shows and acted as judges and stewards, acted as inspectors for the Society’s breed improvement schemes and represented the Society at other equine organisations and events.

The Society is both dependent on and appreciative of the work of so many volunteers who give freely of their time to advance the interests of Welsh breeds. Trustees are aware that voluntary work is not always appreciated and would like to thank members up and down the country who have generously given their time on behalf of the Society.

THE WELSH PONY AND COB SOCIETY

TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2020

Achievements and performance

A Review of 2020 in the wake of the effects of the Covid 19 Pandemic

Just like the rest of the world the effect of the Covid pandemic hit the Society in many ways. Initially it affected the proposed AGM, which was immediately postponed in the hope, at the time, that the virus would soon clear and normal life would resume. Little did the Trustees and staff realise how this arresting disease would paralyse all event activity for more than a year.

The AGM was postponed for a second time from June to September and eventually after continuous dialogue with both the Charity Commission and the Society’s legal advisers, was pushed on a whole year until March 2021, effectively freezing 2020.

The Office put in place the regulatory measures furloughing staff who were vulnerable and asking others to work remotely from home. To the credit of stoic staff members the Society’s Passport issuing function was physically sustained when many others shut up shop. Plans and practices were put in place to ensure business continuity and the safety of the employees.

From a tradition of monthly face to face gatherings the Trustees were thrust into a digital world and embraced online meetings – much as they found them uncomfortable, they kept their eye on the ball to ensure good governance and have become quite adept at convening meetings and discussions at very little notice. This has ensured the smooth running of the Society’s activity for the members and public benefit.

In much the same way the Society’s core activities out in the field suffered greatly with the cancellation – in fact almost decimation of the complete showing season of events thereby haemorrhaging the income stream from affiliations and the sale of Society medals. These third party events are beyond the control of the Society but are the bedrock on which the breeds promote their uniqueness.

The Society’s remit to provide sales for the membership to sell their stock as listed in the Articles of Association could well have been another casualty. However, the Council and its Sales sub-committee forged ahead and engaged by legal tender an Auctioneer to host online sales. After an initial bumpy ride with very few takers, the membership embraced the new concept and the resultant incomes to the Society were considerably more than that of the previous traditional sales from almost a third of the numbers sold in previous years. This new attack at the potential earnings to be had, whilst providing a service which is ultimately for the benefit of members, was also echoed by the introduction of a new registration ‘window’ system with price increases to encourage a more constant flow of registrations. Both these new initiatives have contributed to the Society’s funds in the face of adversity.

Grants were effectively chased and secured from the County Councils based on the fact the Museum and Pavilion are important attractions for tourism and revenues which follow the footfall of visitors to rural areas.

Steps were taken immediately to adopt a ‘no spend attitude’ and a ‘tighten our belt’ mentality, by squeezing when renegotiating contracts and bulk buying to ensure savings on the little things - envelopes, tamperproof paper and passport making components.

No commitments were made with planned events and venue bookings, which in turn was the right decision given how the pandemic panned out. This avoided cancellation fees and wasted publicity costs.

Some novel ideas were introduced, such as the Online Show, which turned over a considerable profit whilst benefiting those members worldwide who took part with a lifting of spirits mid-summer.

The successive lockdowns meant that staff had to be resilient – it has been a long hard year with little respite. Many of the public who interface with the Society made little effort to appreciate that the office has remained open and functional throughout. One caller from across the border was shocked to hear that ‘You have Covid? - in Wales!’

THE WELSH PONY AND COB SOCIETY

TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2020

As the crop of foals foaled in 2020 were already on their way it is difficult to predict if the financial uncertainty of the post Brexit post Covid scenario will result in a fall in registration numbers and subsequent income as breeders err on the side of caution and don’t put so many mares in foal. The timing of the initial outbreak and the warm spring may have tempered this effect for 2021, however, time will tell if this winter is a long one and the spring is wet whether the optimism of 2020 will prevail.

We foresee very few shows during 2021. We hope that an Autumn traditional sale can be staged if restrictions are lifted. If not, then the online sales will continue.

Given that the Society has performed well in this straightjacketed year, we feel confident that as Trustees the Society’s position and attitude facing 2021 and 2022 is one of cautious optimism.

One worry which must be addressed is the potential ‘drift’ away of those members who, by not being active in the showing or breeding spheres during the pandemic, may well find less costly, and therefore more appealing activities to pursue. This is an issue which the incoming Council will have to address, not only for the Society’s funding but also from the cultural aspect to ensure that there are committed breeders and enthusiasts for the future.

The continuous improvement of the Society’s administration is on-going, as evidenced in cost reductions in administrative and backroom areas, and in compliance with the Minimum Operating Standards for UK Passport Issuing Offices and to produce passports within 20 working days, and to update passports within 10 working days.

Resources have been allocated to address issues concerning Education and Welfare for members and non-members, and to include in particular, the younger people. In order to reach a wider audience using social media, the Society promoted a welfare video aimed at members, breeders and Judges in order to highlight the dangers of overfeeding and focus on judging rules and measures that can be applied to discourage obese animals in the show ring. The Society’s Breed & Welfare leaflets are also readily available from the office. Overseas associations can request the supply of translated breed leaflets for issue in their country. The Society’s website hosts an Education and Welfare page that provides a video link and information in this area.

Open Forums, where members are able to directly contact trustees and officers with their concerns or suggestions, have been available during the year across the UK. However, none were requested during 2019. The Society met with the Area Associations on the morning of the 2019 AGM and intended to do so again in 2020. This meeting also enables communication from its members and non-members across the UK to reach the governing board.

Members’ opinion and feedback is helpful to guiding council, and trustees will continue to consult with members on a regular basis.

The Society continues to converse with The University of Wales, Aberystwyth and the Hill Pony Improvement Societies on DNA profiling. This provides invaluable genetic information for the Welsh Breed and will be an asset for future generations to reference.

The Society has reviewed the Judging & Showing Handbook and updated policies and procedures. This is to be made available on the Society’s website to encourage fuller understanding of rules and maintain judging and showing standards. This Judging and Showing Handbook works to ensure the preservation and improvement of judging standards. During 2019 the Young Judges Competition in August and the Judges Conference in September were successful events.

The promotion of the Welsh breeds has been widespread, through the medals and rosettes awarded at shows and events throughout the country. The Society’s Exhibition Unit visited shows and events this year in the UK, promoting the Society, providing services to Members’ and potential members, passing on educational material and information and selling promotional goods.

THE WELSH PONY AND COB SOCIETY

TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2020

The Society’s journal is the envy of other equestrian organisations, however, like many printed media, it is faced by rising printing and postage costs and continuing decline in advertising revenue as a result of members investing in their own websites and creating social media profiles. Council remains committed to the production of an annual journal and will ensure the most effective use of resources during 2020.

Educational bursaries were again available in 2020, but due to the pandemic none were requested or awarded. The services provided by the Society are not restricted and are widely available to the public, without discrimination.

Of the objectives set, the charity has achieved the following during the year:

The main fundraising event is traditionally held at the Past President’s AGM dinner dance; this was not possible in 2020.

The Society has a policy of investing in UK fixed interest and UK equities. The portfolio managers, Investec actively manage the funds on our behalf, buying and selling the portfolio as necessary, and to follow instructions provided by the council in line with their investment policy.

Investments are valued at mid market prices and are split as follows:

2020 2019
Fair 2020 Fair 2019
Value Cost Value Cost
£ £ £ £
Fixed Interest 335,834 274,254 239,491 174,890
Equities 1,443,893 1,179,132 1,116,142 831,806
Cash held in portfolio 81,366 81,366 22,067 22,067
1,861,093 1,534,752 1,377,700 1,028,763

THE WELSH PONY AND COB SOCIETY

TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2020

Financial review

The Society has been operating in uncertain financial times and remained reactive to the challenges that overwhelmed some other equestrian organisations. A positive during 2020 was an increase in registration numbers although membership numbers fell slightly.

Results

Results
2020 2020 2020
2019		 2019 2019
Unrestricted Restricted Total
Unrestricted		 Restricted Total
£ £ £ £ £ £
Income 577,828 14,779 592,607
1,077,181		 16,415 1,093,596
Expenditure (503,827) (7,674) (511,501)
(662,689)		 (12,673) (675,362)
Operating results incl
74,001		 7,105 81,106
414,492		 3,742 418,234
legacy
Operating results excl
70,887		 7,105 77,813
(105,508)		 3,742 (101,766)
legacy
Investment movements 29,461 - 29,461
157,665		 - 157,665
Net movement 103,462 7,105 110,567
572,157		 3,742 575,899

The Society was notified of a legacy in 2019 but was not received until 2020. The estate value was estimated at circa £540k, an amount of £520,000 was provided in the prior year financial statements to allow for any associated legal fees. The final amount received totalled £523,114, therefore the additional income has been recognised in 2020.

The Society is keeping a close watch on both income and expenditure going forward. The Society is seeking to increase its income from membership, from the passport issuing office and from promotional and trading goods whilst exploring other income streams. On-line payment of memberships and other services, such as registrations, transfers and stallion licence fees continue to be popular with members.

This reserves policy seeks to address the charity’s future needs in relation to its reserves and to satisfy Charity Commission requirements for charities to adopt comprehensive reserves policies. The Council has established a financial planning process whereby when agreeing the annual operational budget during the autumn of the preceding year, and with the aim of balancing the operational budget, larger capital or revenue items will be funded out of its reserves. As of the end of December 2020 the free reserves stand at £1,964,635 (2019: £1,317,873). The total designated funds at 31 December 2020 stand at £496,248 (2019: £592,000) see the notes to the financial statements for detailed analysis.

The Council has examined the charity’s requirements for reserves in light of the main risks to the organisation and the cost of projected future projects. The main risks are identified as external events beyond the Society’s influence, including the decision of the UK to leave the European Union and the implementation of a central equine database by the Welsh Government. Future projects will include a new website, a new boiler system and a new IT system.

. The Council recognises that it should not be retaining income funds that should be paid out in the fulfilment of its charitable objectives. The Council undertakes to:

THE WELSH PONY AND COB SOCIETY

TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2020

The Society’s principal funding sources are derived from income through membership subscriptions, grants and sponsorships; and they receive regular monthly income from registration and associated business. The Society has invested amounts with its investment portfolio managers whilst retaining a prudent amount in the bank deposits. Trustees continue to invest in fixed interest/short term deposits and medium to low risk investments and are advised by duly appointed investment portfolio managers.

The trustees have identified the following significant risks affecting the Society:

To mitigate against the above risks and other risks facing the charity the trustees conduct regular reviews of the major risks to which the charity is exposed, listing these in a Risk Register. Systems and procedures have been established to mitigate the risks that the charity faces. Significant external risks to funding have led to the development of a strategic plan which will allow for the diversification of funding and activities and associated budgets. Internal control risks are minimised by the implementation of procedures for authorisation of all transactions and projects. The trustees monitor risks that have become issues in an Issues Log, assigning the roles of action owners and action takers to specific trustees and staff in order to reduce the impact upon the Society. Procedures are in place to ensure compliance with health and safety requirements relating to staff, trustees, volunteers and visitors to the Society’s premises.

The Society continually reviews the procedures to ensure that they continue to meet the needs of the charity.

Plans for future periods

There are key areas of development and investment planned over the next year. The Society’s business plan for 2019-2020 includes continued promotion and education on the Welsh breeds and the care and management of the horses and ponies. This is expected to be undertaken through attending shows and events on a national basis and distributing information and guidance, improved links with the Area Associations, holding Open Forums on a national basis, and promoting literature to members and non-members.

In 2020 the Society produced a Stud Book and a Journal; complied with the Central Equine Database; consulted with the membership including overseas societies and area associations; continue to review and develop new policies and procedures, including the DNA Profiling Policy, as appropriate; and continue to control costs and to develop income. Capital projects for 2020 included the repair of the central heating boiler and the installation of a completely new IT Database.

The internet continues to be an excellent avenue for communication. The Facebook page had over 48,411 “likes” and over 49,178 “followers”. The main demographic visiting the page being female.

THE WELSH PONY AND COB SOCIETY

TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2020

Structure, governance and management

The Welsh Pony and Cob Society (the Society) is a registered charity under the Charities Act 2011 (Number 222014) and a company limited by guarantee (Number 1017832). The Society is governed by its Memorandum and Articles of Association which were initially adopted on the 15 July 1971, at which date the assets and liabilities of the unincorporated Society were acquired. The Articles of Association were subsequently amended and adopted on 1 March 2008 and updated following the EGM in September 2009. The last changes to the Society’s Articles and Memorandum were adopted at the AGM of 1 April 2017.

The Council, who are the Trustees of the charity and Directors of the company, are elected from the membership of the Society at the Annual General Meeting. Council members are elected for a term of 3 years and a third of Council members normally retire each year, creating vacancies to be filled. They may, however, be re-elected for a further three-year period before being required to stand down for a term. The notice calling for nominations is required to be sent to members a minimum of 8 weeks before the AGM. All members of the Society have the right to nominate candidates and vote. The administration and counting of returned postal ballots is conducted by independent scrutineers. The President and President–Elect are also nominated and elected by the members and accepted at the Annual General Meeting. The Chair, Vice-Chair of Council and Chair of Finance and Human Resources are elected by Council members at the first meeting following the AGM each year.

The Society’s structure is that of being governed by a Council of 15 members, responsible for setting the strategic direction of the organisation and the policy of the charity. Council carries the ultimate responsibility for the conduct of the Society and for ensuring that the charity satisfies its legal and contractual obligations. The Council is bound by its Memorandum and Articles of Association to meet at least twice a year. Various sub committees also meet regularly to consider the more urgent issues that arise during the year, but all decisions are ratified by the Council unless prior approval of remit and budget are given. The Council delegates the day-to-day operation of the organisation to senior management. A register of Council Members’ interests is maintained at the registered office and is available to the public for review.

New Council members are provided with an introduction to the Society and their role within its governance through an induction day and a visit to the Society’s office. Printed and electronic materials are made available to them at the induction and following on from that on a regular basis either by email or at Council meetings. Further information and training is provided on an on-going basis through email, at Council meetings and other externally facilitated events.

The trustees consider that the board of directors, who are also the Society’s trustees and the senior management team, comprise the key management personnel of the charity in charge of directing and controlling, running and operating the Society on a day to day basis. All trustees give of their time freely and no trustee received remuneration in the year. Details of trustees’ expenses, key management personnel and related party transactions are disclosed in the notes to the accounts.

The pay of the senior staff is reviewed annually and normally increased in accordance with average earnings. In view of the nature of the charity, the trustees benchmark against pay levels in other charities of a similar size and operating in the same sector. The remuneration is bench-marked using market data which is readily available. This is actioned as long as the charity's business plan allows for the additional expenditure.

The Society is the sole shareholder of WPCS Trading Limited, a company limited by guarantee. This company ceased trading on the 30 September 2005.

The Society also co-operates and liaises with a number of other organisations to achieve its objectives on a broader level. It is closely associated with the Hill Pony Improvement Societies. It co-operates and collaborates with other equine and welfare related organisations, including other native breed societies through DEFRA, the Welsh Government, the National Pony Society, BHS, ILPH, the National Equine Welfare Council, HBLB, Trading Standards, World Horse Welfare, RSPCA, JMB, 826 ESA group, and NASTA, and DNA Consultants.

THE WELSH PONY AND COB SOCIETY

TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2020

Reference and administrative details Charity name The Welsh Pony and Cob Society Charity number 222014 Company number 1017832 Registered office Bronaeron Felinfach Lampeter Ceredigion SA48 8AG

Key management personnel David Meirion Davies - Company Secretary Gemma Bassett-Burr - Office Manager Trustees Mr C Thomas Miss D Chambers Mr R J Davies Mr W G Davies Mr G D J Jones Mr D D Morgan Mr J E Evans Mr W Jones Mr D O Roberts Mr B Hall (resigned 16/09/2020) Ms E Hampson Ms D Jones Mr J W S Welsh Ms S J Charlton Secretary Mr D M Davies President Mr B Foster President Elect Mr C R Davies Chair of Council Mr C Thomas Vice Chair of Council Mr G W Jones Directors of subsidiary company Miss S Hardy Mr C Thomas

THE WELSH PONY AND COB SOCIETY

TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2020

Auditors

Azets Audit Services Ty Derw Lime Tree Court Cardiff Gate Business Park Cardiff CF23 8AB

Legal Advisers Geldards 4 Capital Quarter Tyndall Street Cardiff CF10 4BZ Investment providers Investec Wealth and Investment Ltd 30 Gresham Street London EC2V 7QN Bankers Barclays Bank PLC 1 Churchill Place London E14 5HP

Auditor

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The trustees report was approved by the Board of Trustees.

Mr C Thomas

Dated: 15[th] March 2021

THE WELSH PONY AND COB SOCIETY

STATEMENT OF TRUSTEES RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees, who are also the directors of The Welsh Pony and Cob Society for the purpose of company law, are responsible for preparing the Trustees Report 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 charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

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

The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

THE WELSH PONY AND COB SOCIETY

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF THE WELSH PONY AND COB SOCIETY

Opinion

We have audited the financial statements of The Welsh Pony and Cob Society (the ‘charity’) for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.

THE WELSH PONY AND COB SOCIETY

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF THE WELSH PONY AND COB SOCIETY

Matters on which we are required to report by exception

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

Responsibilities of trustees

As explained more fully in the statement of trustees responsibilities, the trustees, who are also the directors of the charity for the purpose 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 charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 145 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 an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

THE WELSH PONY AND COB SOCIETY

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF THE WELSH PONY AND COB SOCIETY

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the charity’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 charity'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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

15thMarch 2021
Azets Audit Services Ty Derw
Chartered Accountants Lime Tree Court
Statutory Auditor Cardiff Gate Business Park
Cardiff
CF23 8AB

Azets Audit Services is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006.

THE WELSH PONY AND COB SOCIETY

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted
Restricted
funds
funds
2020
2020
Notes
£
£
Income from:
Donations and legacies
3
3,341
-
Charitable activities
4
547,766
7,414
Other trading activities
5
2,048
7,365
Investments
6
24,673
-
Total income
577,828
14,779
Expenditure on:
Raising funds
7
3,210
260
Charitable activities
8
500,617
7,414
Total resources
expended
503,827
7,674
Net gains/(losses) on
investments
29,461
-
Net movement in funds
103,462
7,105
Fund balances at 1
January 2020
2,357,421
20,508
Fund balances at 31
December 2020
2,460,883
27,613		 Total
Unrestricted
funds
2020
2019
£
£
3,341
533,237
555,180
508,504
9,413
1,497
24,673
33,943
592,607
1,077,181
3,470
8,620
508,031
654,069
511,501
662,689
29,461
157,665
110,567
572,157
2,377,929
1,785,264
2,488,496
2,357,421		 Restricted
funds
2019
£
-
-
16,415
-
16,415
11,907
766
12,673
-
3,742
16,766
20,508		 Total
2019
£
533,237
508,504
17,912
33,943
1,093,596
20,527
654,835
675,362
157,665
575,899
1,802,030
2,377,929

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

THE WELSH PONY AND COB SOCIETY

BALANCE SHEET

AS AT 31 DECEMBER 2020

Notes
Fixed assets
Intangible assets
13
Tangible assets
14
Investments
15
Current assets
Stocks
17
Debtors
18
Cash at bank and in hand
Creditors: amounts falling due within
one year
19
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
20
Net assets
Income funds
Restricted funds
23
Unrestricted funds
Designated funds
24
General unrestricted funds		 2020
£
£
18,949
405,299
1,861,093
2,285,341
48,480
4,876
361,724
415,080
(124,351)
290,729
2,576,070
(87,574)
2,488,496
27,613
496,248
1,964,635
2,460,883
2,488,496		 2019
£
£
23,686
423,862
1,377,700
1,825,248
56,684
545,436
129,222
731,342
(92,019)
639,323
2,464,571
(86,642)
2,377,929
20,508
592,000
1,765,421
2,357,421
2,377,929

THE WELSH PONY AND COB SOCIETY

BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2020

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2020, although an audit has been carried out under section 145 of the Charities Act 2011.

The trustees responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to accounts, so far as applicable to the company.

The members have not required the company to obtain an audit of its financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 15[th] March 2021

Mr C Thomas Trustee

Company Registration No. 1017832

THE WELSH PONY AND COB SOCIETY

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2020

2020 2019
Notes £ £ £ £
Cash flows from operating activities
Cash generated from/(absorbed by) 29
operations 665,634 (126,519)
Investing activities
Purchase of intangible assets - (13,445)
Proceeds on disposal of intangibles - 1,804
Purchase of tangible fixed assets (3,873) (1,920)
Purchase of investments (756,143) (242,638)
Proceeds on disposal of investments 302,211 313,236
Investment income received 24,673 33,943
Net cash (used in)/generated from
investing activities (433,132) 90,980
Net cash used in financing activities - -
Net increase/(decrease) in cash and cash
equivalents 232,502 (35,539)
Cash and cash equivalents at beginning of year 129,222 164,761
Cash and cash equivalents at end of year 361,724 129,222

THE WELSH PONY AND COB SOCIETY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

Charity information

The Welsh Pony and Cob Society is a private company limited by guarantee incorporated in England and Wales. The registered office is Bronaeron, Felinfach, Lampeter, Ceredigion, SA48 8AG.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 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 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

General funds are unrestricted funds which are available for use at the discretion of the board in furtherance of the general objectives of the society and which have not been designated for other purposes.

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. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors which have been raised by the society for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

1.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Dividends income is recognised on the date the charity's right to receive payment is established.

Trading income is recognised in the period to which the income is generated.

THE WELSH PONY AND COB SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

Income from charitable activities (excluding grants) is credited to the Statement of Financial Activities in the year in which they are due. Income received in advance is deferred to the appropriate financial year.

Grants are only included in the SoFA when the general income recognition criteria are met.

In the case of performance related grants, income must only be recognised to the extent that the charity has provided the specified goods or services, as entitlement to the grant only occurs when the performance related conditions are met. Grants receivable are treated in different ways dependent upon their purposes and the terms of the grant.

Grants receivable for specific purposes are also treated as restricted funds so that any unused funds can be separately identified.

Grants receivable to facilitate the general running of the charity are treated as unrestricted funds.

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

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes.

1.5 Resources expended

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.

Costs of raising funds comprise the costs in relation to generating income such as fundraising activities.

Expenditure on charitable activities includes all costs relating to the furtherance of the charity’s objectives as stated in the trustees report.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs. The basis for calculating the allocation of support costs was as a percentage of total staff costs attributed to each department.

Governance costs comprise all costs involving public accountability of the charity and its compliance with regulation and good practice.

1.6 Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software 20% reducing balance

THE WELSH PONY AND COB SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

1.7 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings 2% and 5% straight line Leasehold land and buildings Over the life of the lease Plant and equipment 25% and 33% straight line Motor vehicles 20% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

Individual fixed assets costing £250 or more are capitalised at cost.

1.8 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.10 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

The complete set of stud books used for library and reference purposes are not valued and are excluded from the Balance Sheet.

1.11 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

THE WELSH PONY AND COB SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

1.12 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.13 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

THE WELSH PONY AND COB SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

1.15 Leases

Rentals payable under operating leases are charged to the income and expenditure account on a straight line basis over the term of the relevant lease.

1.16 Reserve for future costs of life members

Life Members’ subscriptions received in the period are included in income and transferred to deferred income.

The deferred income is adjusted at each accounting date for a regular amount transferred back to income dependent on the age banding of the life member.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

Life members deferred income

The charity provides life membership to members of varying ages, this requires an estimation regarding the number of years in which the income is released in the financial statements.

The income is released in the financial statements as follows:

Under 21's - over 50 years 21-40's - over 40 years Over 40 - over 30 years Over 60 - over 20 years

As at 31st December 2020 the amounts of income deferred totalled £94,157 (2019: £92,959), split between creditors due within one year £6,583 (2019: £6,316) and creditors due after more than one year £87,574 (2019: £86,642).

Income released in the financial statements totalled £1,198 (2019: £1,057).

Stock

The charity holds a large amount of stock of which some items are deemed to be obsolete and/or slow moving. A stock provision is made each year which requires an estimation as to the written down value.

During the year stock was written down by £14,513 (2019: £8,695).

As at 31st December 2020 the stock value contained in the financial statements totalled £48,480 (2019: £56,684).

THE WELSH PONY AND COB SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

3 Donations and legacies

Unrestricted Unrestricted
funds funds
2020 2019
£ £
Donations and gifts 227 13,237
Legacies receivable 3,114 520,000
3,341 533,237
Donations and gifts
Donations and sponsorship 179 344
Pavillion donations and income 48 12,893
227 13,237

4 Charitable activities

Unrestricted
Unrestricted
funds funds
2020 2019
£ £
Subscriptions and life members income 134,543 150,697
Journal sales and advertising 21,561 21,459
Other membership income incl insurance 630 1,276
Registration and passports 250,969 214,990
Transfers and other registration income 80,351 74,066
Promotional goods 4,189 16,362
Judging, medal and rosette income 15,523 29,654
Grants 47,414 -
555,180 508,504
Analysis by fund
Unrestricted funds 547,766 508,504
Restricted funds 7,414 -
555,180 508,504

THE WELSH PONY AND COB SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

5 Other trading activities

Unrestricted
Restricted
funds
funds
2020
2020
£
£
Internet advertising
revenue
67
-
Young people's fund
-
4,925
Presidents fundraising
and dinner
-
2,440
Solar panel income
1,981
-
Other trading activities
2,048
7,365		 Total
Unrestricted
Restricted
funds
funds
2020
2019
2019
£
£
£
67
67
-
4,925
-
6,475
2,440
-
9,940
1,981
1,430
-
9,413
1,497
16,415		 Total
2019
£
67
6,475
9,940
1,430
17,912

6 Investments

Income from listed investments
Interest receivable
Raising funds
Unrestricted
Restricted
funds
funds
2020
2020
£
£
Fundraising and publicity
Premium awards
2,560
-
Donations and bursaries
650
-
Retiring presidents
dinner
-
-
Young people's fund
-
260
Fundraising and publicity
3,210
260
3,210
260		 Unrestricted Unrestricted
funds
funds
2020
2019
£
£
23,185
31,286
1,488
2,657
24,673
33,943
Total
Unrestricted
Restricted
Total
funds
funds
2020
2019
2019
2019
£
£
£
£
2,560
2,050
-
2,050
650
6,570
-
6,570
-
-
8,838
8,838
260
-
3,069
3,069
3,470
8,620
11,907
20,527
3,470
8,620
11,907
20,527		 Unrestricted Unrestricted
funds
funds
2020
2019
£
£
23,185
31,286
1,488
2,657
24,673
33,943
Total
Unrestricted
Restricted
Total
funds
funds
2020
2019
2019
2019
£
£
£
£
2,560
2,050
-
2,050
650
6,570
-
6,570
-
-
8,838
8,838
260
-
3,069
3,069
3,470
8,620
11,907
20,527
3,470
8,620
11,907
20,527
33,943
Total
2019
£
2,050
6,570
8,838
3,069
20,527
20,527

7 Raising funds

THE WELSH PONY AND COB SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

8 Charitable activities

Membership Registration
Education &
promotion
Judging &
showing
£
£
£
£
Journal costs
18,321
-
-
-
Membership costs
20,146
-
-
-
Central prefix register
and stud books
-
5,771
-
-
DNA blood typing and
microchips
-
35,253
-
-
Passport binding
-
340
-
-
Promotional goods and
stock
-
-
9,639
-
Exhibition unit expenses
-
-
1,263
-
Publicity officers
expenses and
educational visits
-
-
-
-
Medals, rosettes and
engraving
-
-
-
2,488
Judges conferences
-
-
-
47
Judges and showing
handbook
-
-
-
1,089
International show costs
and expenses
-
-
-
-
38,467
41,364
10,902
3,624
Share of support costs
(see note 10)
60,609
168,744
36,993
103,578
Share of governance
costs (see note 10)
7,000
20,125
4,375
12,250
106,076
230,233
52,270
119,452
Analysis by fund
Unrestricted funds
98,662
230,233
52,270
119,452
Restricted funds
7,414
-
-
-
106,076
230,233
52,270
119,452
For the year ended 31 December 2019
Unrestricted funds
126,572
284,078
58,749
184,670
Restricted funds
-
-
-
766
126,572
284,078
58,749
185,436		 Total
2020
£
18,321
20,146
5,771
35,253
340
9,639
1,263
-
2,488
47
1,089
-
94,357
369,924
43,750
508,031
500,617
7,414
508,031		 Total
2019
£
22,858
22,064
3,191
45,808
335
4,546
2,961
210
34,297
5,174
2,312
766
144,522
389,426
120,887
654,835
654,069
766
654,835

THE WELSH PONY AND COB SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

9 Description of charitable activities

Membership

The members’ services department deals with subscriptions, the pavilion, the internet information and the journal.

Registration

The registration department includes the activities of registration, passports, transfers, exports, central prefixing, stud books and DNA blood typing and licenses.

Education & promotion

The education and promotions department includes the premium awards, junior club and donations, together with deals which include some promotional goods, second hand books and sponsorship.

Judging & showing

The judging & showing department includes the conference and seminar meetings, together with the attendance at shows and events, medals and rosettes.

THE WELSH PONY AND COB SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

10
Support costs
Staff costs
Depreciation
Other staff costs
Postage and stationery
Computer costs
Equipment rental
Repairs, renewals and
sundry
Rates and utilities
Insurance
Travel and subsistence
Telephone
Bank charges,
investment and other
costs
Audit fees
Accountancy fees
Legal and professional
fees
AGM expenses
Meeting expenses
Council expenses and
training
Analysed between
Charitable activities		 Support
costs
Governance
costs
£
£
194,855
-
27,172
-
100
-
36,010
-
26,083
-
3,910
-
25,491
-
10,000
-
7,055
-
100
-
19,662
-
19,486
-
-
11,000
-
2,515
-
23,939
-
3,996
-
-
-
2,300
369,924
43,750
369,924
43,750		 2020Support costs Governance
costs
£
£
£
194,855
202,888
-
27,172
28,894
-
100
1,632
-
36,010
39,603
-
26,083
25,091
-
3,910
3,910
-
25,491
26,304
-
10,000
11,774
-
7,055
6,155
-
100
2,312
-
19,662
19,320
-
19,486
21,543
-
11,000
-
11,000
2,515
-
6,050
23,939
-
69,898
3,996
-
27,149
-
-
3,387
2,300
-
3,403
413,674
389,426
120,887
413,674
389,426
120,887		 2019
£
202,888
28,894
1,632
39,603
25,091
3,910
26,304
11,774
6,155
2,312
19,320
21,543
11,000
6,050
69,898
27,149
3,387
3,403
510,313
510,313

11 Trustees

No trustees received any remuneration during the current or prior year. A total of £718 (2019: £2,403) was incurred in relation to travel, subsistence and accommodation expenses.

In 2020 one trustee E Hampson claimed expenses (2019: two trustees; E Hampson and P N E Morgan).

THE WELSH PONY AND COB SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

12 Employees

Number of employees

The average monthly number of employees during the year was:

Office staff
Employment costs
Wages and salaries*
Social security costs
Other pension costs		 2020
Number
8
2020
£
178,800
10,265
5,790
194,855		 2019
Number
9
2019
£
191,680
6,729
4,479
202,888

*includes amounts for agency staff in 2019

Key management personnel

The key management personnel as detailed in the trustees report received benefits (including gross salary, employers national insurance and employers pension contributions) totalling £74,120 (2019: £44,795).

Employees earning > £60k

There were no employees whose annual remuneration was £60,000 or more.

13 Intangible fixed assets

Intangible fixed assets
Cost
At 1 January 2020 and 31 December 2020
Amortisation and impairment
At 1 January 2020
Amortisation charged for the year
At 31 December 2020
Carrying amount
At 31 December 2020
At 31 December 2019		 Software
£
26,245
2,559
4,737
7,296
18,949
23,686

THE WELSH PONY AND COB SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

14 Tangible fixed assets

Freehold land
and buildings
£
Cost
At 1 January 2020
468,805
Additions
-
At 31 December 2020
468,805
Depreciation and impairment
At 1 January 2020
87,743
Depreciation charged in the year
10,029
At 31 December 2020
97,772
Carrying amount
At 31 December 2020
371,033
At 31 December 2019
381,062		 Leasehold
land and
buildings
£
95,614
-
95,614
72,764
2,609
75,373
20,241
22,850		 Plant and
equipment
Motor vehicles
£
£
313,091
17,500
3,873
-
316,964
17,500
301,653
8,988
8,095
1,703
309,748
10,691
7,216
6,809
11,438
8,512		 Total
£
895,010
3,873
898,883
471,148
22,436
493,584
405,299
423,862

15 Fixed asset investments

Listed
investments
£
Cost or valuation
At 1 January 2020
1,355,631
Additions
756,143
Valuation changes
29,461
Cash movement
-
Disposals
(361,510)
At 31 December 2020
1,779,725
Carrying amount
At 31 December 2020
1,779,725
At 31 December 2019
1,355,631		 Cash in
portfolio
Other
investments
22,067
2
-
-
-
-
59,299
-
-
-
81,366
2
81,366
2
22,067
2		 Total
£
1,377,700
756,143
29,461
59,299
(361,510)
1,861,093
1,861,093
1,377,700

THE WELSH PONY AND COB SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

15
Fixed asset investments
Other investments comprise:
Notes
Investments in subsidiaries
28
16
Financial instruments
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
17
Stocks
Finished goods and goods for resale
18
Debtors
Amounts falling due within one year:
Other debtors
19
Creditors: amounts falling due within one year
Notes
Other taxation and social security
Deferred income
21
Trade creditors
Other creditors
Accruals and deferred income
20
Creditors: amounts falling due after more than one year
Notes
Deferred income
21		 2020
£
2
2020
£
1,779,725
2020
£
48,480
2020
£
4,876
2020
£
16,447
25,588
42,101
-
40,215
124,351
2020
£
87,574		 2019
£
2
2019
£
1,355,631
2019
£
56,684
2019
£
545,436
2019
£
3,362
31,716
31,885
1,035
24,021
92,019
2019
£
86,642

THE WELSH PONY AND COB SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

21 Deferred income

2020 2019
£ £
Arising from membership subscriptions and
journal sales 113,162 118,358

Deferred income comprises journal sales and membership subscriptions which relate to the 2021 financial year.

Deferred income also includes life members’ subscriptions.

Deferred income is included in the financial statements as follows:

2020 2019
£ £
Balance brought forward 118,358 117,867
Income received in the year 157,203 178,785
Released to income (162,399) (178,294)
Balance carried forward 113,162 118,358

22 Retirement benefit schemes

Defined contribution schemes

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £5,790 (2019: £4,479). The amount outstanding at the year end was £nil (2019: £1,035).

THE WELSH PONY AND COB SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

23 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Incoming Resources Balance at Incoming Resources Balance at
1 January resources expended 1 January resources expended 31 December
2019 2020 2020
£ £ £ £ £ £ £
Miss Broderick Memorial Fund 932 - - 932 - - 932
Young People's Account Fund 9,119 6,475 (3,069) 12,525 4,925 (260) 17,190
Presidents Fund - 9,940 (8,838) 1,102 2,440 - 3,542
International show 6,715 - (766) 5,949 - - 5,949
Coronavirus Job Retention Scheme - - - - 7,414 (7,414) -
16,766 16,415 (12,673) 20,508 14,779 (7,674) 27,613

Miss Broderick Memorial Fund

A fund set up in memory of Miss Broderick in order to cover costs of providing a replica trophy and engraving costs for the Miss Broderick Memorial Prize.

Young People’s Account Fund

Money kept in reserve arising from the young people’s fundraising activities, and which is to be used for their purposes as instructed.

President’s Fund

The 2020 President’s fundraising income is being held in a restricted reserve with any income in excess of expenditure being donated to charity during the 2021 financial year.

International show

Money kept in reserve to cover a potential donation to the International Show 2021 and the funding of the international rosettes for 2021.

Coronavirus Job Retention Scheme

Funding to support wages costs during the Covid-19 pandemic.

THE WELSH PONY AND COB SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

24 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Movement in funds Movement in funds
Balance at Incoming Transfers Balance at Transfers Balance at
1 January resources 1 January 31 December
2019 2020 2020
£ £ £ £ £ £
Educational bursary 1,650 - 350 2,000 - 2,000
IT development 45,000 - (25,000) 20,000 - 20,000
Miss Thelma Carter legacy - 520,000 - 520,000 (520,000) -
Legal costs 35,000 - - 35,000 (5,000) 30,000
Capital expenditure 15,000 - - 15,000 - 15,000
Training - - - - 5,000 5,000
Fixed asset fund - - - - 424,248 424,248
96,650 520,000 (24,650) 592,000 (95,752) 496,248

Educational bursary

Relates to monies designated to provide educational bursaries. The remaining balance will be expended in future periods.

IT development

Relates to future costs regarding the redesign and update of the charity's new IT system.

Miss Thelma Carter legacy

Relates to legacy income that the society was notified of in 2019. These funds have now been invested in the charity's investment portfolio.

Legal costs

Relates to future costs regarding ongoing legal advice.

Capital expenditure

Relates to future capital costs to be incurred towards work at Bronaeron site.

Training

Relates to future costs regarding training, the remaining balance will be expended in future periods.

Fixed asset fund

This represents the net book value of the charity's fixed and intangible assets.

THE WELSH PONY AND COB SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

25
Analysis of net assets between funds
Unrestricted
Designated
Restricted
2020
2020
2020
£
£
£
Fund balances at 31 December 2020 are
represented by:
Intangible fixed assets
-
18,949
-
Tangible assets
-
405,299
-
Investments
1,861,093
-
-
Current assets/(liabilities)
191,116
72,000
27,613
Long term liabilities
(87,574)
-
-
1,964,635
496,248
27,613		 Total Unrestricted
Designated
2020
2019
2019
£
£
£
18,949
23,686
-
405,299
423,862
-
1,861,093
1,377,700
-
290,729
26,815
592,000
(87,574)
(86,642)
-
2,488,496
1,765,421
592,000		 Restricted
2019
£
-
-
-
20,508
-
20,508		 Total
2019
£
23,686
423,862
1,377,700
639,323
(86,642)
2,377,929

THE WELSH PONY AND COB SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

26 Operating lease commitments

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years
In over five years		 2020
£
25,410
55,424
13,824
94,658		 2019
£
12,910
12,124
-
25,034

The charity classifies the lease of a photocopier, franking machine and rental of a building as operating leases. Rental charges are charged on a straight line basis over the term of the lease.

27 Related party transactions

There were no disclosable related party transactions during the year (2019- none).

Included within the Trustees Report are details of related party relationships regarding the society’s dormant trading subsidiary and other organisations the society works with to achieve its objectives.

28 Subsidiaries

These financial statements are separate charity financial statements for The Welsh Pony and Cob Society Limited.

Consolidated financial statements have not been prepared due to the trading subsidiary being dormant.

Details of the charity's subsidiaries at 31 December 2020 are as follows:

Name of undertaking Registered Nature of business Class of % Held
office shares held Direct Indirect
WPCS Trading Ltd United Kingdom Dormant Ordinary 100.00
Shares

The aggregate capital and reserves and the result for the year of subsidiaries excluded from consolidation was as follows:

Name of undertaking Profit/(Loss) Capital and
Reserves
£ £
WPCS Trading Ltd - 2

THE WELSH PONY AND COB SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

28 Subsidiaries

The company number for the trading company is 02946610. The investment in the subsidiary is stated at cost.

29
Cash generated from operations
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Fair value gains and losses on investments
Amortisation and impairment of intangible assets
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease in stocks
Decrease/(increase) in debtors
Increase/(decrease) in creditors
(Decrease)/increase in deferred income
Cash generated from/(absorbed by) operations
30
Analysis of changes in net funds		 2020
2019
£
£
110,567
575,899
(24,673)
(33,943)
(29,461)
(157,665)
4,737
3,011
22,435
25,883
8,204
1,296
540,560
(527,999)
38,461
(13,492)
(5,196)
491
665,634
(126,519)

The charity had no debt during the year.