Charity Registration No. 231748 Company Registration No. 347417
The Horse Trust
(A company limited by guarantee and not having share capital)
Group report and financial statements 31 December 2020
The Horse Trust
Legal and administrative information
| Charity name | The Horse Trust |
|---|---|
| Charity registration number | 231748 Founded 1886, Incorporated 1938 |
| Company registration number | 347417 |
| The Society is a member of the National Equine Welfare Council (NEWC) | |
| Registered office and operational address | The Horse Trust |
| Home of Rest for Horses | |
| Speen | |
| Princes Risborough | |
| HP27 0PP | |
| Patron | Her Royal Highness The Princess Royal |
| President | Baroness Mallalieu QC |
| Board of Trustees | Professor J D Slater- Chair (Resigned 22 September 2021) |
| Professor M Bowen | |
| Professor P Clegg | |
| Mr D Cook – Chair (Appointed 22 September 2021) | |
| Mrs B Jones | |
| Mr C Marriott | |
| Lord R De Mauley | |
| Ms L Mcgillycuddy | |
| Professor B McGorum | |
| Mr R Neal | |
| Ms C Roddis | |
| Mrs C Soames (Resigned 25 November 2020) | |
| Chief Executive and Secretary | Miss J M Allen |
| Bankers | Coutts and Co |
| St Martins Branch | |
| 440 The Strand | |
| London | |
| WC2R 0QS |
The Horse Trust
Legal and administrative information (continued)
| Auditors | Saffery Champness LLP |
|---|---|
| St John’s Court | |
| Easton Street | |
| High Wycombe | |
| Buckinghamshire | |
| HP11 1JX | |
| Solicitors | Underwood & Co |
| 40 Welbeck Street | |
| London | |
| W1M 8LM | |
| Lupton Fawcett | |
| Yorkshire House | |
| East Parade | |
| Leeds | |
| West Yorkshire | |
| LS1 5BD | |
| Hatch Legal | |
| 12 Park House | |
| 11 Park Row | |
| Leeds | |
| LS1 5HB | |
| Investment Managers | Cazenove Capital Management Limited |
| 12 Moorgate | |
| London | |
| EC2R 6DA | |
| Sarasin & Partners LLP | |
| Juxon House | |
| 100 St Paul’s Churchyard | |
| London | |
| EC4M 8BU |
The Horse Trust
Contents
| Page | |
|---|---|
| Report of the board of trustees | 1 - 7 |
| Independent auditor’s report | 8 - 11 |
| Consolidated statement of financial activities | 12 |
| Consolidated balance sheet | 13 |
| Balance sheet | 14 |
| Consolidated statement of cashflows | 15 |
| Notes to the financial statements | 16 - 41 |
The Horse Trust
Report of the Board of Trustees for the year ended 31 December 2020
The Board of Trustees has pleasure in presenting its report and the financial statements for the year ended 31 December 2020.
The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), which incorporates the report of the directors for the purposes of company law.
Structure, governance and management
Status and administration
The Trust was founded in 1886 and incorporated as a company limited by guarantee on 16 December 1938. It is registered as a charitable company and governed by its Memorandum and Articles of Association. A Board of Trustees, the members of which are set out on page 1 of this report, is responsible for the activities of the group.
For the purposes of the Companies Act 2006 members of the Board of Trustees are deemed to be directors and are appointed in accordance with the requirements of the Memorandum and Articles of Association.
Recruitment and induction of Trustees
Board members normally serve for a maximum of 6 years, 9 in some circumstances, and are selected to provide a broad spectrum of relevant expertise and experience.
Existing trustees and members are invited to submit names of potential trustees, who have to be registered members elected by The Board of Trustees. The Board will scrutinise these nominations with a view to ensuring that the duly elected Board contains the necessary skills mix. Trustee vacancies can be filled at any time through election by the Board but such appointments have to be confirmed through election by the members at the next AGM. Trustees serve for a nominal term of three years after which they can stand for election for a further three-year term, in some cases a third term of three years can also be served.
Induction training is provided for all new trustees. They visit the registered office so they can see how the group operates on a day to day basis. This also gives the new trustees an opportunity to meet the Chief Executive and other key personnel. The new trustees are given a briefing pack of important documentation.
Trustees are encouraged to attend appropriate external training events, seminars, workshops and be briefed on and discuss topical matters to assist them in the understanding and performance of their role. Articles, bulletins and notices relevant to their duties and responsibilities are circulated to trustees.
All trustees give of their time freely and no trustee remuneration was paid in the year. Details of trustee expenses are disclosed in note 25 to the accounts.
Key management personnel remuneration
The Trust is managed and operated by employed staff. The key management personnel are identified to be the Chief Executive, the Equine Care Director, the Veterinary Director and the Finance Director. The pay of the senior staff is reviewed annually by the Board and benchmarked appropriately.
Organisation
The Board of Trustees meet quarterly and are responsible for all strategic decisions and for setting policy. The Chief Executive is appointed to execute policy and to manage the administrative and day-to-day operations of The Trust.
Page 1
The Horse Trust
Report of the Board of Trustees for the year ended 31 December 2020 (continued)
The group has two wholly owned subsidiaries, The Horse Trust Trading Company Limited and British Animal Rescue and Trauma Association (BARTA).
BARTA undertakes the development and delivery of nationally recognised training courses in large animal rescue. It has worked in partnership with The Horse Trust for many years and has now been fully brought under The Horse Trust’s umbrella.
As the work of BARTA is so closely aligned with The Horse Trust it has been decided to consolidate the three organisations and show their financial statements in a group format.
Risk management
The Board of Trustees examines the major strategic business and operational risks which The Trust faces on an annual basis. They also ensure that there are the systems and procedures in place to mitigate these risks and to minimise any potential impact on the group.
The main areas of risk are considered to be fire or an incident at The Home of Rest for Horses. A full fire assessment has been carried out by an external specialist and no major issues were found and any minor recommendations have been implemented.
Objectives and activities
The objects of the group can be summarised in our mission statement:
The Horse Trust exists to enhance and improve the quality of life of equidae in the UK. This encompasses their physical and psychological needs. It will achieve this through the development, demonstration and dissemination of best practice in equine care.
In achieving these objectives, The Trust undertakes four main strategic aims:
1. Sanctuary – Demonstrate best practice
To provide lifelong sanctuary and respite care at the Home of Rest for Horses, for equines (1) who have served their country or community, (2) who come to us suffering, distressed and in need of special care or (3) for special cases as defined by the Trust.
2. Scientific Research – Develop Best Practice
To fund non-invasive research of the highest scientific standard that advances our knowledge of veterinary treatment, the optimal care of equines and the prevention of disease and suffering. The aim is to impact positively on the wider equine population.
3. Knowledge and Skills – Disseminate Best Practice
To devise and deliver a broad spectrum of training modules, courses and programmes for a variety of specified audiences and utilising a variety of media and techniques, that will impact most positively, the quality of life of the largest number of equines.
4.
Policy - Direct Best Practice
To continue our policy work in a politically neutral way that does not compromise our scientific investment but that plays a key role in facilitating the development of national policy and best practice that improves equine welfare in the UK.
These objectives and the work done by the group to achieve them are reviewed regularly by the Board and a new strategic plan is devised approximately every five years.
Page 2
The Horse Trust
Report of the Board of Trustees for the year ended 31 December 2020 (continued)
Statement of public benefit
The Trustees in exercising their powers and duties have complied with their duty in Section 17 of the Charity Act 2011. The Board of Trustees has referred to the guidance contained in the Charity Commission’s general guidance on public benefit, including the guidance public benefit, running a charity (PB2), when reviewing the charity’s aims and objectives and in planning its future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives they have set. Improving horse welfare is the primary aim and through the ongoing and planned activities described in this report, the charity fulfils its remit to public benefit through the advancement of education, the advancement of science, relief to animals in need and relief to needy owners and carers of animals through the provision of counselling and advice. The Horse Trust also benefits the taxpayer by providing training to police, fire and rescue and trading standard officers as well as providing respite care to working horses.
Achievements and performance
The Board would like to formally thank all the volunteers who assist the employees at events and with the running of both the office and the yard. The group would also like to thank their supporters for their ongoing financial support which allows us to continue our work and secure our long-term future.
Home of Rest for Horses
The Horse Trust is probably best known for its work providing retirement to working horses who have served their community or their country, such as horses from the Police, Army, Royal Mews and charities such as Riding for the Disabled Association and Horse Rangers. The Home of Rest for Horses will continue to provide lifelong retirement for these and also for local equines found in urgent need of rescue.
A variety of professional equine focused organisations have been using our facilities and horses for their CPD training, including veterinary surgeons, equine behaviourists, farriers and equine dental technicians. This is in addition to specialist training we provide ourselves. Our unique herd and range of teaching facilities allow professionals and statutory officers to further develop their skills and in turn means they are better equipped to help more people and horses. All these training courses, offered on our site by external providers or ourselves, add to the pool of better trained and qualified professionals that our own training programmes provide. Taken together they produce a significant benefit to horses, owners and to the public at large.
The rehabilitation work continues with the appropriate horses and a number have been successfully rehomed throughout the year which has freed up places here for horses that are on the waiting list.
During 2020 further work began at our Langley Farm site to improve facilities for both the equines and the employees that care for them. There is a clinic that will allow our veterinary surgeon to treat horses on this site rather than being transferred back to Speen.
The car park alongside the new training centre was also completed which will allow more training courses to be carried out onsite.
Research Grant Making Policy
The Horse Trust invites applications for both Research Grant Projects and PhDs. Once preliminary applications have been received, they are reviewed by the Science and Ethics Committee who then short list a selection that are invited to submit a full application. These full applications are then subject to a peer review and are ranked. The Board of Trustees of The Horse Trust will then make the final funding decisions from these rankings. These will be based in part on the impact assessment report of each short-listed application. The applicants will need to have clearly demonstrated the intended benefits to the UK equine population, how such benefits will be communicated to the horse owning and keeping public as well as veterinary and allied professionals and will be prompted to look at a variety of criteria when completing their reports. When the research grants are being discussed the meetings are chaired by the legally qualified trustee and all perceived, potential or actual conflicts of interest are scrupulously declared and recorded.
Page 3
The Horse Trust
Report of the Board of Trustees for the year ended 31 December 2020 (continued)
Research
| Projects Supported University of Liverpool University of Edinburgh University of Nottingham University of Bristol Animal Health Trust Roslin Institute Moredun Research Other Royal Veterinary College Hartpury College Glasgow University Total |
No 8 3 1 2 2 1 1 2 1 1 |
2020 £ No 129,420 7 64,621 2 56,018 39,209 2 27,010 2 20,112 2 13,474 1 11,666 1 4,000 1 3,170 1 - 1 |
2019 £ 126,129 47,092 - 36,198 21,973 35,264 111,734 5,988 17,041 6,000 9,617 |
|---|---|---|---|
| 22 | 368,702 20 |
417,036 |
Current research projects are also being analysed to seek new best practice which can then be incorporated in our own yard routines as well as disseminated to appropriate audiences. Subjects being researched under Horse Trust funding include the causes of Atypical Myopathy, Wormer Resistance, the spread of exotic disease by mosquitos, Equine Dentistry, investigating the bacterium responsible for Strangles to aid the creation of an efficacious and affordable vaccine and the possible causes of Grass Sickness.
Following our second Scientific Symposium in 2019, The Horse Trust will continue in the initial development stage of the HorseLife project including working with Equine Register on the IT structure needed for the study. HorseLife is the concept of following a large group of horses over a period of several years in a longitudinal cohort study of the type that has been successfully carried out in human medicine and in dogs.
Education in Equine Welfare
The Horse Trust has continued to train first responders from various Fire and Rescue Services and other public sector organisations in 2019 in conjunction with the British Animal Rescue and Trauma Association (BARTA). These courses help to safeguard fire fighters and the public when rescuing horses, by giving them a greater understanding of how horses behave when under stress, how they learn and how human actions can greatly affect the horse’s behaviour. This training also equips fire fighters and other first responders to better safeguard the public in a horse related incident. The courses have been a huge success with all fire fighters and first responders giving The Horse Trust excellent feedback, including sharing examples of when they have put the training to use within their daily work.
We also provide our own BEVA approved CPD courses for vets, vet nurses and vet students in ethical and safe horse handling and equine ethology. The Horse Trust also sponsored Student Equine Veterinary Association (SEVA) Congress. The event was a perfect opportunity for the Trust to unveil some of its exciting new online courses for veterinary surgeons and students.
Page 4
The Horse Trust
Report of the Board of Trustees for the year ended 31 December 2020 (continued)
Policy
The Horse Trust has continued with its policy work in a politically neutral way, that does not compromise the scientific investment, but that plays a key role in facilitating the development of national policy and best practice that improves equine welfare in the UK. Our role of sector facilitator has become ever more utilised by government and the rest of the UK’s equine sector during 2020. The Horse Trust helps to facilitate the work of the British Horse Council, which brings together all aspects of equine interest in the UK including racing, breeding, elite sport, leisure riding, enforcement, veterinary and welfare agencies, providing a single unified voice to government on equine related matters where consensus exits.
During 2020, the Chief Executive and senior management team began work on their new five-year strategic plan for the group that was approved by the Board.
Financial Review
Review of the year
2020 has been an unprecedented year for the charity with the global pandemic affecting all areas of the charity’s work. The Home of Rest for Horses was unable to open to the public due which did mean that donations were lower than in the previous year. It also meant The Horse Trust was unable to attend external events which is a major way the charity recruits both supporters and donations. Office based employees worked at home for much of the year and were creative in finding other ways to generate income which did mean the fall was not as large as it potentially could have been.
Other income streams such as legacies and investments were also affected. There was a significant delay in receiving solicitor’s notifications, probate and selling houses which did slow up the legacy pipeline in year for both expected legacies and actual cash receipts. During 2020 The Horse Trust received legacies of £1,095,477 which was lower than the previous year. (2019 - £1,235,009).
The investment houses worked hard in an extremely difficult climate and whilst the portfolio values did hold up quite well, income was affected.
Regarding expenditure there some significant variations compared to budget as the 2020 budget was finalised prior to any certainty over the continued impact of Coronavirus and ongoing lockdown faced. The Home of Rest continued to run as normal as the animals still need to be cared for and employees in this were considered essential workers who must come into work each day. Research payments were lower than expected as some universities did place a temporary hold on their projects. Knowledge and skills training did reduce as planned training courses did not run; some courses, however, were moved online. Policy work was able to continue although meetings become virtual rather than in person.
Investment policy
The Board of Trustees has the power to invest in such assets as it sees fit. Management of The Trust’s investment portfolio is split equally between two investment houses, Sarasin & Partners and Cazenove Capital Management who invest finances and advise the Investment Management Group, a sub-committee of the Board of Trustees which reviews investment performance and makes recommendations to trustees. Ultimately, changes in investment policy are the responsibility of the Board of Trustees. Currently the mandate for both houses is a long-term target of CPI +4%.
A significant proportion of investments are held in listed equity shares. The performance of the portfolio is generally in line with the overall UK stock market. At the year end the total amount held in investments was £17,330,603 (2019 - £17,961,107). It must be remembered that these values can only be taken as an indication of the value on this date.
Page 5
The Horse Trust
Report of the Board of Trustees for the year ended 31 December 2020 (continued)
Reserves
The Board of Trustees has developed over past years its policy with regard to the accumulated funds of the Trust. As explained in the notes to the accounts, designated funds are held to finance charitable fixed assets, future grant commitments and a capital fund.
The Horse Trust continues to accept research grant applications and so the Trust has transferred money to the designated Future Grants Fund as the nature of our funding is to generally commit to three-year long projects. This designated fund currently stands at £1,500,000 which will ensure that research grants can be awarded for the next three years (approximately £500,000 per year) Once projects have been awarded the required monies are transferred to the Future Awarded Grants Fund. This fund is then used to pay the agreed amounts to the grant recipients on a twice-yearly basis providing there is satisfactory progress.
The Capital Fund represents funds set aside to ensure a flow of income which is sufficient to support the future activities of the group including long term plans to issue significant grants for further scientific research. The General Fund is the operating reserves of the group and is set at approximately twelve months expenditure to ensure the flexibility to meet immediate future plans. This fund currently stands at £3m.
Public relations and fundraising
During 2020 The Horse Trust continued with a proactive donor acquisition marketing strategy to recruit new supporters in ethical ways and to encourage donations through advertising, direct mail, public relations and other fundraising initiatives. The continuing objective is to acquire new donors, turn “one off” donors into regular givers and then to encourage committed donors to become legators. The Horse Sponsorship Scheme has proven highly successful; however, being shut to the public and not being able to attend external events has limited our donor recruitment. Costs have continued to be controlled throughout 2020 and new technologies and mechanisms introduced to further increase efficiency. The Board Members are satisfied that all Horse Trust fund raising activities are ethical and conducted within the law and best practice and have adopted a new formal Ethical Fundraising Policy to ensure our very high standards are maintained in this area.
Land and buildings
The value of freehold land and properties, included in the balance sheet at a book value of £7m, and is considered by the Board of Trustees to be in excess of that value if realised.
Future plans
The group plans to continue to enhance and improve the quality of life of horses in the UK with a greater emphasis on the requirement to cater for their psychological health as well as their physical health and to do more work on how best to influence owners to change some husbandry techniques.
The site development work at Langley Farm will be completed to further enhance the care and veterinary facilities on this site.
During 2021, The Horse Trust will continue working on the new Strategic Plan which was developed by the Chief Executive and the senior management team and agreed by the Board in March 2020.
The Horse Trust plans to launch and develop Talk Equine, a platform created by The Horse Trust, to share the latest research and work from the equine science sector. It is a forum for discussion and communication, for open conversations into the latest developments in research, behaviour, and practice.
The Horse Trust will continue developing the HorseLife project including working with Equine Register on the IT structure needed for the study.
The Horse Trust will also continue its policy work and undertake to maintain its role as a trusted and politically neutral facilitator for the sector for the benefit of the UK’s equine population.
Page 6
Independent auditors’ report to the members of The Horse Trust
The Horse Trust
Opinion
We have audited the financial statements of The Horse Trust (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 December 2020 which comprise of the consolidated statement of financial activities, consolidated and company balance sheet, consolidated statement of cashflows and notes to the financial statements, including 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:
-
give a true and fair view of the state of affairs of the group and parent charitable company as at 31 December 2020 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group or the parent 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.
Page 8
Independent auditors’ report to the members of The Horse Trust (continued)
The Horse Trust
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 auditor’s report 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.
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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
-
the information given in the Trustees’ Annual Report which includes the Directors’ Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-
the Trustees’ Annual Report which includes the Directors’ Report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
-
the parent charitable company financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of trustees’ remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the Statement of Trustees’ Responsibilities set out on 7, the trustees (who are also the directors of the parent 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 the financial statements that are free from material misstatement, whether due to fraud or error.
Page 9
The Horse Trust
Independent auditors’ report to the members of The Horse Trust (continued)
In preparing the financial statements, the trustees are responsible for assessing the group and the parent 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 group or the parent 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 auditors under the Companies Act 2006 and report in accordance with regulations made under that Act.
Our objectives are to obtain reasonable assurance about whether the group and parent 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the group and parent charitable company’s financial statements to material misstatement and how fraud might occur, including through discussions with the trustees, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the group and parent charitable company by discussions with trustees and updating our understanding of the sector in which the group and parent charitable company operate.
Laws and regulations of direct significance in the context of the group and parent charitable company include The Companies Act 2006 and guidance issued by the Charity Commission for England and Wales.
Audit response to risks identified:
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the parent charitable company’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent charitable company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
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The Horse Trust
Independent auditors’ report to the members of The Horse Trust (continued)
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the parent charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the parent charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent charitable company and the parent charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Karen Bartlett (Senior Statutory Auditor) for and on behalf of Saffery Champness LLP
21 December 2021 .........................
Chartered Accountants
Statutory Auditors
St John's Court Easton Street High Wycombe HP11 1JX
Saffery Champness LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006
Page 11
The Horse Trust
Consolidated statement of financial activities (including income and expenditure account) For the year ended 31 December 2020
| Unrestricted Restricted Note funds funds £ £ Income from Donations and legacies 2 1,518,960 44,792 Charitable activities 3 26,020 - Investment income 4 474,633 - Rent receivable and sundry income 5 49,111 - Total 2,068,724 44,792 Expenditure on: Raising funds 6 153,869 - Charitable activities 7 3,051,704 41,522 Investment management Costs 85,431 - Total 3,291,004 41,522 Net gains/(losses) on investments Gains/(losses) on Investment assets 17 980,724 - Net Income/ (expenditure) (241,556) 3,270 Transfer between funds 21 - - Total fund movement (241,556) 3,270 Reconciliation of funds: 21 Total funds brought forward 26,567,999 77,534 Total funds carried forward 21 26,326,443 80,804 |
Total funds Unrestricted Restricted 2020 funds funds £ £ £ 1,563,752 1,760,733 62,592 26,020 22,496 - 474,633 626,046 - 49,111 113,595 - 2,113,516 2,522,870 62,592 153,869 348,714 - 3,093,226 2,792,414 33,117 85,431 92,274 - 3,332,526 3,233,402 33,117 980,724 2,206,116 - (238,286) 1,495,584 29,475 - - - (238,286) 1,495,584 29,475 26,645,533 25,072,415 48,059 26,407,247 26,567,999 77,534 |
Total funds 2019 £ 1,823,325 22,496 626,046 113,595 |
|---|---|---|
| 2,585,462 | ||
| 348,714 2,825,531 92,274 |
||
| 3,266,519 | ||
| 2,206,116 | ||
| 1,525,059 - |
||
| 1,525,059 25,120,474 |
||
| 26,645,533 |
All recognised gains and losses are included within the above statement. All amounts relate to continuing activities. The notes on pages 16 to 41 form part of these financial statements.
The trustees have prepared group accounts in accordance with Section 398 of the Companies Act 2006 and Section 138 of the Charities Act 2011. These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies. As permitted by s408 Companies Act2006, the company has not presented its own Statement of Financial Activity and related notes. The Charity's loss for the year was £118,444 (2019 – profit of £1,625,639).
Page 12
| Note | Note | 2020 | 2019 | ||||
|---|---|---|---|---|---|---|---|
| £ | £ | £ £ | |||||
| Fixed assets | |||||||
| Tangible assets | 16 | 7,789,086 | 7,561,148 | ||||
| Investments | 17 | 17,330,603 | 17,961,107 | ||||
| 25,119,689 | 25,522,255 | ||||||
| Current assets | |||||||
| Stocks | 18 | 39,634 | 40,638 | ||||
| Debtors | 19 | 1,283,775 | 977,276 | ||||
| Cash at bank and in hand | 192,969 | 343,526 | |||||
| 1,516,378 | 1,361,440 | ||||||
| Creditors: amounts falling | |||||||
| due | 20 | (228,818) | (238,162) | ||||
| within oneyear | |||||||
| Net current assets | 1,287,560 | 1,123,278 | |||||
| Net assets | 26,407,249 | 26,645,533 | |||||
| Represented by | |||||||
| Funds | |||||||
| Unrestricted funds | 21 | ||||||
| Generalfund | 3,000,000 | 3,000,000 | |||||
| Designated funds | |||||||
| Charitable fixed assets | 7,711,749 | 7,545,538 | |||||
| Future grants | 1,500,000 | 1,500,000 | |||||
| Awarded future grants | 1,157,142 | 1,509,751 | |||||
| Capital fund | 13,157,976 | 13,093,291 | |||||
| BARTA | (178,851) | (64,619) | |||||
| Florse Trust Trading Company | (21,571) | (15,962) | |||||
| 26,326,445 | 26,567,999 | ||||||
| Restricted funds | 22 | 80,804 | 77,534 | ||||
| Total accumulated funds | 23 | 26,407,249 | 26,645,533 |
The Horse Trust
Balance sheet
As at 31 December 2020
| Note 2020 £ £ Fixed assets Tangible assets 16 7,775,749 Investments 17 17,350,176 25,125,925 Current assets Stocks 18 36,634 Debtors 19 1,544,907 Cash at bank and in hand 146,689 1,728,230 Creditors: amounts falling due within one year 20 (226,912) Net current assets 1,501,318 Net assets 26,627,243 Represented by Funds Unrestricted funds 21 General fund 3,019,573 Designated funds Charitable fixed assets 7,711,749 Future grants 1,500,000 Awarded future grants 1,157,142 Capital fund 13,157,976 26,546,439 Restricted funds 22 80,804 Total accumulated funds 23 26,627,243 |
2019 £ £ 7,545,539 17,980,680 25,526,219 25,058 1,149,585 278,384 1,453,027 (233,559) 1,219,468 26,745,687 3,019,573 7,545,538 1,500,000 1,509,751 13,093,291 26,668,153 77,534 26,745,687 |
2019 £ £ 7,545,539 17,980,680 25,526,219 25,058 1,149,585 278,384 1,453,027 (233,559) 1,219,468 26,745,687 3,019,573 7,545,538 1,500,000 1,509,751 13,093,291 26,668,153 77,534 26,745,687 |
|---|---|---|
| 25,526,219 1,219,468 |
||
| 26,745,687 | ||
| 3,019,573 7,545,538 1,500,000 1,509,751 13,093,291 |
||
| 26,668,153 77,534 |
||
| 26,745,687 |
The financial statements on pages 11 to 41 were approved by the Committee of Management and authorised for issue on are signed on its behalf by: 12 December 2021
……………………………..
Mr D Cook Chairman
Company Number: 347417
The notes on pages 15 to 41 form part of these financial activities.
Page 14
The Horse Trust
Consolidated statement of cashflows As at 31 December 2020
| Note Cash used in operating activities 26 Cashflow from investing activities Dividends, interest and rents from investments Proceeds from sale of property, plant and equipment Purchase of property, plant and equipment Proceeds from sale of investments Purchase of investments Net cash (used in)/provided by investing activities Cashflow from financing activities Repayment of borrowings Cash inflows from Charity Combination Receipt of endowment Net cash provided by/(used in) financing Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period 27 |
2020 £ (1,760,716) 474,633 (12,330) (394,385) 5,005,606 (3,350,798) 1,722,726 - - - - (37,990) 1,037,469 999,481 |
2019 £ (1,073,629) 626,046 - (1,716,578) 4,605,114 (2,811,417) |
|---|---|---|
| 703,435 - 2,645 - |
||
| 2,645 (367,549) 1,405,018 |
||
| 1,037,469 |
The notes on pages 15 to 41 form part of these financial statements.
Page 15
The Horse Trust
Notes to the financial statements For the year ended 31 December 2020
1 Accounting policies
The Horse Trust is a company limited by guarantee and has no share capital. In the event of the group being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity. The group is registered in England and Wales. The registered office is The Horse Trust, Home of Rest for Horses, Speen, Princes Risborough, HP27 0PP.
The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year and the preceding year.
1.1
Basis of accounting
The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK (FRS102) – Charities SORP 2015 and the Companies Act 2006.
The Horse Trust 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.
There are no material uncertainties about the group’s ability to continue as a going concern.
The financial statements have been prepared in sterling, which is the functional currency of the group. Monetary amounts in these financial statements are rounded to the nearest £.
1.2 Consolidation
The financial statements consolidate the results of the Charity and its wholly owned subsidiary The Horse Trust Trading Company Limited as well as British Animal Rescue and Trauma Care Association CIC, which is deemed to be a included in the consolidation of the Trust due to the deemed control rather than share ownership due to the organisational status as a CIC. The consolidation has been completed on a on a line by line basis. Details of the undertakings together with a summary of their income and expenditure for the year and net assets are shown in notes 17 and 31.
1.3 Tangible fixed assets and depreciation
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided on all fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset over its expected useful life, as follows:-
| Freehold land | - | Nil |
|---|---|---|
| Freehold property | - | over 50 years by equal instalments |
| Property improvements | - | over 10 to 30 years by equal instalments |
| Loose boxes | - | over 30 years by equal instalments |
| Plant and equipment | - | at 10% of the reducing balance |
| Furniture, fixtures and fittings | - | at 10% of the reducing balance, or over 3 years by |
| equal instalments | ||
| Motor vehicles | - | over 5 years by equal instalments |
| Horse ambulance | - | at 25% of the reducing balance |
Individual fixed assets costing more than £500 are capitalised at cost.
Page 16
Notes to the financial statements For the year ended 31 December 2020 (continued)
The Horse Trust
1. Accounting policies
(continued)
1.4 Investments
Investments are stated at market value at the balance sheet date. The SOFA includes gains and losses arising on revaluations and disposals throughout the year.
Realised gains and losses represent the difference between the market value at the previous balance sheet date and the eventual sale proceeds. Unrealised gains and losses represent the difference between market value at the previous balance sheet date, or cost of any purchases during the year, and the market value at the balance sheet date.
1.5 Stocks
Stocks are stated at the lower of cost and net realisable value. Cost is based on the cost of purchase on a first in, first out basis. Net realisable value is based on estimated selling price less additional costs to completion and disposal.
1.6 Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
1.7 Cash at bank and in hand
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
1.8 Creditors and provisions
Creditors and provisions are recognised where the group has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
1.9 Financial instruments
The trust 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
1.10 Pension costs
The company contributes to a defined contribution pension scheme and a group personal pension plan. Contributions to the pension scheme are charged to the income and expenditure account as they fall due.
Page 17
The Horse Trust
Notes to the financial statements For the year ended 31 December 2020 (continued)
1. Accounting policies
(continued)
1.11 Incoming resources
All incoming resources are included in the statement of financial activities when the group is entitled to the income and the amount can be measured with reliably.
Voluntary income is received by way of legacies and donations. Donations are included in full in the statement of financial activities when received.
For legacies, entitlement is taken as the earlier of the date on which either: the group is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the group has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the group, or the group is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material (see note 25).
1.12
Donated goods
The Trust receives assistance in the form of donated goods. This income is recognised in the statement of the financial activities at market value or managements estimate as the Trust would otherwise have to purchase these goods.
1.13
Expenditure and irrecoverable VAT
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
-
Costs of raising funds comprise the costs of fundraising, training and other sundry income and their associated support costs.
-
Charitable expenditure comprises those costs incurred by the group in the delivery of its charitable activities. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
-
Other expenditure represents those items not falling into any other heading.
All costs are allocated between the expenditure categories of the statement of financial activities on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly.
Grants payable are charged in the year when the offer is conveyed to the recipient except in those cases when the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled.
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the group and include the audit fees and costs linked to the strategic management of the group.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
Page 18
The Horse Trust
Notes to the financial statements For the year ended 31 December 2020 (continued)
1. Accounting policies
(continued)
1.14 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the group; this is normally upon notification of the interest paid or payable by the Bank.
1.15 Allocation of support costs
Support costs are those functions that assist the work of the group but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the Trusts artistic programmes and activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities. The bases on which support costs have been apportioned on an appropriate basis as set out in Note 12.
1.16 Taxation
The Trust as a charity is not liable for assessment to tax on its income and gains to the extent that they are applied to its charitable objectives.
1.17 Fund accounting
Unrestricted funds comprise accumulated surpluses and deficits on the general fund and designated funds. They are available for use at the discretion of the Committee of Management in furtherance of the Trust’s general charitable objectives.
Designated funds are those funds designated for particular purposes or projects at the discretion of the Committee of Management. These are explained in more detail in Note 21.
Restricted funds are created when income is received which has a restriction placed upon its use by the donor.
1.18 Going Concern
At the time of approving the financial statements, the Trustees have a reasonable expectation that the group 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.
Page 19
The Horse Trust
Notes to the financial statements For the year ended 31 December 2020 (continued)
| 2. Donations and legacies Unrestricted Restricted 2020 2020 £ £ Donations income 391,813 44,792 BARTA income 31,670 - Legacies 1,095,477 - 1,518,960 44,792 3. Income from charitable activities Unrestricted Restricted 2020 2020 £ £ Fundraising 23,103 Training income 2,917 26,020 4. Investment income Unrestricted Restricted 2020 2020 £ £ Income from investments 472,520 Bank interest 2,113 474,633 5. Rent receivable and sundry income Unrestricted Restricted 2020 2020 £ £ Rent 7,292 Trading subsidiary income 9,469 Other 32,350 Gift on acquisition of BARTA - 49,111 |
2. Donations and legacies Unrestricted Restricted 2020 2020 £ £ Donations income 391,813 44,792 BARTA income 31,670 - Legacies 1,095,477 - 1,518,960 44,792 3. Income from charitable activities Unrestricted Restricted 2020 2020 £ £ Fundraising 23,103 Training income 2,917 26,020 4. Investment income Unrestricted Restricted 2020 2020 £ £ Income from investments 472,520 Bank interest 2,113 474,633 5. Rent receivable and sundry income Unrestricted Restricted 2020 2020 £ £ Rent 7,292 Trading subsidiary income 9,469 Other 32,350 Gift on acquisition of BARTA - 49,111 |
Total 2020 £ 436,605 31,670 1,095,477 1,563,752 Total 2020 £ - 23,103 - 2,917 - 26,020 Total 2020 £ - 472,520 - 2,113 - 474,633 Total 2020 £ - 7,292 - 9,469 - 32,350 - - - 49,111 |
Total 2020 £ 436,605 31,670 1,095,477 1,563,752 Total 2020 £ - 23,103 - 2,917 - 26,020 Total 2020 £ - 472,520 - 2,113 - 474,633 Total 2020 £ - 7,292 - 9,469 - 32,350 - - - 49,111 |
Total 2019 £ 547,455 40,861 1,235,009 |
|
|---|---|---|---|---|---|
| 1,823,325 | |||||
- - - - - - - - - - - |
Total 2019 £ 18,802 3,694 |
||||
| 26,020 | 22,496 | ||||
| Total 2020 £ 472,520 2,113 |
Total 2019 £ 622,114 3,932 |
||||
| 474,633 | 626,046 | ||||
| Total 2020 £ 7,292 9,469 32,350 - |
Total 2019 £ 9,144 72,742 12,136 19,573 |
||||
| 49,111 | 113,595 |
Page 20
The Horse Trust
Notes to the financial statements For the year ended 31 December 2020 (continued)
| 6. Cost of raising funds Unrestricted Restricted Total Total 2020 2020 2020 2019 £ £ £ £ Cost of generating voluntary income 12,309 - 12,309 68,281 Public relations 811 - 811 14,879 Promotional material 4,734 - 4,734 9,384 Trading subsidiary costs 15,079 - 15,079 88,704 Support costs (see Note 12) 120,936 - 120,936 167,466 153,869 - 153,869 348,714 Basis of allocation for support costs is direct. 7. Charitable activities expenditure Unrestricted Restricted Total Total 2020 2020 2020 2019 £ £ £ £ Home of Rest for Horses 1,724,240 19,896 1,744,136 1,679,334 Research costs 807,571 - 807,571 675,315 Education in Equine Welfare 330,327 21,626 351,953 290,584 BARTA costs 145,902 - 145,902 125,053 Governance 43,664 - 43,664 55,235 Total 3,051,704 41,522 3,093,224 2,825,531 Activities undertaken Support Total funds costs 2020 £ £ £ Home of Rest for Horses 661,141 1,063,098 1,724,239 Research costs 591,723 215,848 807,571 Education in Equine Welfare 49,713 280,614 330,327 Governance 43,664 43,664 Total 1,302,577 1,603,224 2,905,801 |
Total 2020 £ 12,309 811 4,734 15,079 120,936 |
Total 2019 £ 68,281 14,879 9,384 88,704 167,466 |
|
|---|---|---|---|
| 153,869 | 348,714 | ||
| Total 2019 £ 1,679,334 675,315 290,584 125,053 55,235 |
|||
| 2,825,531 |
Page 21
The Horse Trust
Notes to the financial statements For the year ended 31 December 2020 (continued)
| 8. Analysis of expenditure Forage and rent Fertiliser and muck disposal Repairs and maintenance Fencing Heat and light Insurances Council tax and water Veterinary, farrier and other Costs Welfare rescue Yard equipment and uniform Vehicle expenses Depreciation Scientific research Clinical scholarship Symposium Symposium Groups Science Diss HorseLife Education sponsorship Best Practice Providing professional Training Welfare clinic costs Equine Policy Cost of generating voluntary income Public relations Promotional material BARTA costs Trading subsidiary costs Support costs (see Note 12) |
Charitable Cost of raising Activities Governance raising funds £ £ £ 75,243 - - 9,540 - - 60,723 - - 19,083 - - 35,033 - - 44,608 - - 9,189 - - 178,733 - - 1,264 - - 19,745 - - 20,014 - - 187,967 - - 189,741 - - 169,961 - - 9,000 - - - - - 3,389 - - 219,632 - - 19,396 - - 4,742 - - 5,589 - - 15,777 - - 4,209 - - - 12,309 - 811 - 4,734 145,903 - - 15,079 1,559,559 43,664 120,936 3,008,040 43,664 153,869 |
Total 2020 £ 75,243 9,540 60,723 19,083 35,033 44,608 9,189 178,733 1,264 19,745 20,014 187,967 189,741 169,961 9,000 - 3,389 219,632 19,396 4,742 5,589 15,777 4,209 12,309 811 4,734 142,309 15,079 1,724,159 3,205,573 |
Total Basis of 2019 allocation £ 65,549 Direct 4,295 Direct 92,665 Direct 34,002 Direct 47,369 Direct 35,924 Direct 15,453 Direct 210,005 Direct 56,301 Direct 25,619 Direct 21,724 Direct 153,306 Direct 207,806 Direct 183,626 Direct 25,605 Direct 20,660 Direct 7,048 Direct 4,238 Direct 28,413 Direct 760 Direct 8,788 Direct 5,910 Direct 4,274 Direct 68,281 Direct 14,879 Direct 9,384 Direct 125,053 Direct - Direct 1,571,295 Direct 3,048,232 |
|---|---|---|---|
Page 22
The Horse Trust
Notes to the financial statements
For the year ended 31 December 2020 (continued)
| 9. Research costs Scientific research Clinical scholarship Other grants Symposium Science Diss HorseLife Support costs (see Note 12) 10. Education in Equine Welfare Education sponsorship Best Practice Providing professional training Welfare clinic costs Equine Policy Support costs (see Note 12) 11. Analysis of grants Analysis Veterinary Research Grants to institutions University of Liverpool University of Edinburgh University of Nottingham University of Bristol The Animal Health Trust Roslin Institute Moredun Research RVC Hartpury Other |
2020 £ 189,741 169,961 9,000 - 3,389 219,632 215,848 807,571 2020 £ 19,396 4,742 5,589 15,777 4,209 280,614 330,327 Grants to Support costs institutions (see Note 12) £ £ 368,702 215,848 129,420 64,621 56,018 39,209 27,010 20,112 13,474 4,000 3,170 11,666 368,702 |
2019 £ 207,806 183,626 25,605 20,660 7,048 4,237 206,386 655,368 2019 £ 28,413 760 8,788 5,910 4,274 242,439 290,584 Total £ 584,550 |
|---|---|---|
Page 23
The Horse Trust
Notes to the financial statements
For the year ended 31 December 2020 (continued)
12. Support costs
| Salaries Salary on costs Recruitment Consultancy Pension Heat and Light Cleaning Telephone and Internet Website Design Sundries Purchases Depreciation of office equipment Audit and Accountancy IT Support Legal and Professional fees Health and Safety Site security Travel Expenses Committee Expenses Postage, Printing and Stationery HR Development Bank Charges and Interest |
Cost of Raising Funds £ 72,184 509 1,269 - 8,050 - 3,041 1,618 4,092 - 11,664 5,989 981 - - 8 2,639 140 - 4,918 1,701 2,133 120,936 |
The Home £ 811,872 7,806 1,251 - 55,120 - 46,661 24,825 4,092 1,288 - 5,989 981 9,105 18,378 128 40,487 1,963 - 4,918 26,101 2,133 1,063,098 |
Research costs £ 140,930 499 - - 16,850 - 2,985 1,588 4,092 1,288 - 5,989 981 9,105 18,378 8 2,590 1,843 - 4,918 1,670 2,133 215,848 |
Education in equine Governance welfare costs £ £ 175,591 28,304 1,396 68 - - - - 29,644 2,840 - - 8,344 404 4,439 215 4,092 - 1,288 - - - 5,989 - 981 9,000 9,105 - 18,378 - 23 1 7,240 351 2,384 82 - 40 4,918 - 4,667 226 2,133 2,133 280,614 43,664 |
Total Basis of 2020 apportionment £ 1,228,881 Staff time 10,278 Staff 2,520 Direct costs - Equal split 112,505 Staff time - Staff 61,435 Staff 32,685 Staff 16,367 Equal split 3,865 Equal split 11,664 Direct costs 23,957 Equal split 12,924 * 27,316 Equal split 55,134 Equal split 169 Staff 53,307 Staff 6,412 Direct costs 40 Direct costs 19,670 Equal split 34,365 Direct costs 10,666 Equal split 1,724,160 |
|---|---|---|---|---|---|
Page 24
The Horse Trust
Notes to the financial statements
For the year ended 31 December 2020 (continued)
| pport costs - Salaries Salary on costs Recruitment Consultancy Pension Heat and Light Cleaning Telephone and Internet Website Design Sundries Purchases Depreciation of office equipment Audit and Accountancy IT Support Legal and Professional fees Health and Safety Site security Travel Expenses Committee Expenses Postage, Printing and Stationery HR Development Bank Charges and Interest |
2019 Cost of Raising Funds £ 109,928 565 717 2,360 9,196 600 3,953 1,892 345 - 15,354 6,181 - - - 1,089 3,658 1,748 - 6,051 1,680 2,147 167,464 |
The Home £ 655,149 5,910 2,103 2,360 46,713 6,270 41,347 19,789 345 615 - 6,181 - 6,968 24,931 11,389 38,259 5,673 - 6,051 17,570 2,147 899,770 |
Research costs £ 118,205 560 42 2,360 12,752 595 3,921 1,877 345 615 - 6,181 - 6,968 24,931 1,080 3,628 12,460 - 6,051 1,666 2,147 206,384 |
Education in equine Governance welfare costs £ £ 142,694 30,412 1,048 84 920 - 2,360 2,360 18,676 2,788 1,112 89 7,332 585 3,509 280 345 - 615 - - - 6,181 - - 8,400 6,968 - 24,931 - 2,020 161 6,784 541 5,629 1,202 - 5,938 6,051 - 3,116 248 2,147 2,147 242,438 55,235 |
(continued) Total Basis of 2019 apportionment £ 1,056,389 Staff time 8,167 Staff 3,782 Direct costs 11,801 Equal split 90,125 Staff time 8,665 Staff 57,138 Staff 27,347 Staff 1,380 Equal split 1,845 Equal split 15,354 Direct costs 24,725 Equal split 8,400 * 20,904 Equal split 74,793 Equal split 15,739 Staff 52,870 Staff 26,712 Direct costs 5,938 Direct costs 24,205 Equal split 24,280 Direct costs 10,737 Equal split 1,571,295 |
|---|---|---|---|---|---|
12. Support costs - 2019
The group adopts a policy of allocating costs to the respective cost heading through the year. This allocation includes support costs where they are directly attributable. Where such costs are not directly attributable they are allocated on either staff time or number. Where this is not considered appropriate support costs are allocated evenly.
*Audit - governance/Accountancy – equal split
Page 25
The Horse Trust
Notes to the financial statements
For the year ended 31 December 2020 (continued)
13. Net incoming resources for the year
| 2020 | 2019 | |
|---|---|---|
| £ | £ | |
| This is arrived at after charging or (crediting): | ||
| Rent receivable under operating leases | ||
| Land and buildings | (7,292) | (9,144) |
| Depreciation – owned fixed assets | 218,117 | 180,422 |
| Loss on capital – owned fixed assets | 3,938 | - |
| Auditors’ remuneration | ||
| Audit services | 9,000 | 8,400 |
| Non audit services | - | - |
14. Employees
a. Number of employees
During the year the average monthly number of full time equivalent staff employed by the Trust was as follows:-
| Farm and stables Home support staff The Horse Trust Trading Co BARTA b. Employment costs Wages and salaries Social security costs Pension costs |
Group 2020 £ 27 17 2 1 47 Group 2020 £ 1,238,775 111,493 112,505 1,462,773 |
Group 2020 £ 27 17 2 1 |
Group 2019 £ 24 14 4 2 44 Group 2019 £ 1,066,202 102,332 95,148 1,263,682 |
Charity 2020 £ 27 17 - - 44 Charity 2020 £ 1,120,318 108,563 112,505 1,341,386 |
Charity 2019 £ 24 14 - - 38 Charity 2019 £ 961,467 94,922 90,125 |
|
|---|---|---|---|---|---|---|
| 47 | ||||||
| 1,146,514 |
All staff are employed by the group.
Page 26
The Horse Trust
Notes to the financial statements For the year ended 31 December 2020 (continued)
14. Employees
(continued)
- c. Staff earning in excess of £60,000
One employee earned between £120,000 – £130,000 and one employee earned between £60,000 - £70,000 (2019: one employee earned between £110,000 - £120,000).
The key management personnel for the group comprise of three individuals considered to make decisions on behalf of the Trustees. Total employee benefits of the key management personnel of the group was £249,785 (2019: £239,242).
No Trustees received remuneration during the year (2019: £nil).
15. Taxation
The company is a registered charity and is not considered liable to taxation on its charitable activities. Income tax deducted at source from income is recoverable, where possible, from HM Revenue & Customs.
16. Tangible fixed assets
- a. Summary - Group
| Loose boxes Motor Freehold land, and other Furniture vehicles property and plant and fixtures and horse improvements equipment and fittings ambulance £ £ £ £ Cost 1 January 2020 7,678,163 488,370 373,835 124,174 Additions 323,809 108,566 26,010 Disposals (31,500) (1,591) 31 December 2020 8,001,972 565,436 398,254 124,174 Depreciation 1 January 2020 623,253 205,038 199,728 75,375 Charge for the year 131,883 41,062 27,877 17,295 Disposal (19,189) (1,572) 31 December 2020 755,136 226,911 226,033 92,670 Net book values 31 December 2020 7,246,836 338,525 172,221 31,504 31 December 2019 7,054,910 283,332 174,107 48,799 |
Total £ 8,664,542 458,385 (33,091) |
|---|---|
| 9,089,836 | |
| 1,103,394 218,117 (20,761) |
|
| 1,300,750 | |
| 7,789,086 | |
| 7,561,148 |
Page 27
The Horse Trust
Notes to the financial statements For the year ended 31 December 2020 (continued)
16. Tangible fixed assets
(continued)
Summary - Charity
| Loose boxes Motor Freehold land, and other Furniture vehicles property and plant and fixtures and horse improvements equipment and fittings ambulance £ £ £ £ Cost 1 January 2020 7,678,163 458,531 373,835 124,174 Additions 323,809 108,566 26,010 Disposals (31,500) (1,591) 31 December 2020 8,001,972 535,597 398,254 124,174 Depreciation 1 January 2020 623,253 190,808 199,728 75,375 Charge for the year 131,883 38,790 27,877 17,295 Disposal (19,189) (1,572) 31 December 2020 755,136 210,409 226,033 92,670 Net book values 31 December 2020 7,246,836 325,188 172,221 31,504 31 December 2019 7,054,910 267,723 174,107 48,799 |
Total £ 8,634,703 458,385 (33,091) |
|---|---|
| 9,059,997 | |
| 1,089,164 215,845 (20,761) |
|
| 1,284,248 | |
| 7,775,749 | |
| 7,545,539 |
- b. Analysis of freehold property
Included within freehold property and improvements is land of £1,963,610 (2019: £1,963,610) which is not depreciated. Freehold property comprises property at Speen Farm, Langley Farm and Little Moseley Farm, Buckinghamshire.
c. All of the fixed assets are used for charitable purposes other than an immaterial element of furniture, fixtures and fittings which is used for administration purposes.
Page 28
The Horse Trust
Notes to the financial statements
For the year ended 31 December 2020 (continued)
17. Investments
| a. Investment in subsidiary undertaking Cost 1 January 2020 Additions at cost Disposals 31 December 2020 Impairment 1 January 2020 and 31 December 2020 Movement in year 31 December 2020 Net book values Brought Forward Carried Forward |
Group 2020 £ - - - - - - - - - |
Group 2019 £ - - - - - - - - - |
Charity 2020 £ 19,574 - - 19,574 - - - 19,574 19,574 |
Charity 2019 £ 1 19,573 - |
|---|---|---|---|---|
| 19,574 | ||||
| - - |
||||
| - | ||||
| 1 | ||||
| 19,574 |
The Charity has 100% ownership of The Horse Trust Trading Company Limited and has 100% control of British Animal Rescue and Trauma Care Association CIC during 2019. The acquisition shown above represents the investment treated as a “gift” at the date of the charitable combination.
Page 29
The Horse Trust
Notes to the financial statements
For the year ended 31 December 2020 (continued)
| 17. Investments b. Investment portfolio Group 2020 £ Cost 1 January 2020 13,374,044 Additions at cost 3,350,798 Disposals (4,197,928) 31 December 2020 12,526,914 Unrealised gain 1 January 2020 3,893,119 Movement in year 104,058 31 December 2020 3,997,177 Market value of quoted investments 31 December 2020 16,524,091 Other investment monies Stockbroker open accounts Capital account 52,370 Income account 754,142 31 December 2020 806,512 Total investments 17,330,603 c. Analysis of realised and unrealised gain Group 2020 £ Realised gain/(loss) 876,666 Unrealised gain/(loss) 104,058 Total net gains/(losses) 980,724 |
Group 2019 £ 14,475,721 2,811,147 (3,912,824) 13,374,044 2,379,292 1,513,827 3,893,119 17,267,163 293,809 400,136 693,945 17,961,108 Group 2019 £ 692,289 1,513,827 2,206,116 |
Charity 2020 £ 13,374,044 3,350,798 (4,197,928) 12,526,914 3,893,119 104,058 3,997,177 16,524,091 52,370 754,142 806,512 17,330,603 Charity 2020 £ 876,666 104,058 980,724 |
(continued) Charity 2019 £ 14,475,721 2,811,147 (3,912,824) 13,374,044 2,379,292 1,513,827 3,893,119 17,267,163 293,809 400,136 693,945 17,961,108 Charity 2019 £ 692,289 1,513,827 |
(continued) Charity 2019 £ 14,475,721 2,811,147 (3,912,824) 13,374,044 2,379,292 1,513,827 3,893,119 17,267,163 293,809 400,136 693,945 17,961,108 Charity 2019 £ 692,289 1,513,827 |
|---|---|---|---|---|
| 13,374,044 | ||||
| 2,379,292 1,513,827 |
||||
| 3,893,119 | ||||
| 17,267,163 | ||||
| 293,809 400,136 |
||||
| 693,945 | ||||
| 17,961,108 | ||||
| Charity 2019 £ 692,289 1,513,827 |
||||
| 2,206,116 |
Page 30
The Horse Trust
Notes to the financial statements For the year ended 31 December 2020 (continued)
17. Investments
(continued)
d. Analysis of investments
Quoted investments at market value are comprised of:
| UK equities Non UK equities UK fixed interest securities UK bonds Other UK investments held Other non UK investments held |
Group 2020 £ 2,457,924 8,968,561 226,716 1,867,838 1,152,149 1,850,903 16,524,091 |
Group 2019 £ 4,039,523 7,763,455 813,263 1,614,510 2,392,499 643,913 17,267,163 |
Charity 2020 £ 2,457,924 8,968,561 226,716 1,867,838 1,152,149 1,850,903 16,524,091 |
Charity 2019 £ 4,039,523 7,763,455 813,263 1,614,510 2,392,499 643,913 |
|---|---|---|---|---|
| 17,267,163 |
e. Subsidiaries
Name
Business activity
Wholly owned Subsidiaries of the charity:
The Horse Trust Trading Company Limited
-
Undertakes the trading activities of the charity
-
British Animal Rescue and Trauma Care ● The provisional services of the rescue and trauma Association CIC care of animals
18. Stocks
| tocks | ||||
|---|---|---|---|---|
| Forage Veterinary Drugs Merchandise Other |
Group 2020 £ 13,065 17,332 6,237 3,000 39,634 |
Group 2019 £ 8,100 11,659 5,299 15,580 40,638 |
Charity 2020 £ 13,065 17,332 6,237 - 36,634 |
Charity 2019 £ 8,100 11,659 5,299 - |
| 25,058 |
Page 31
The Horse Trust
Notes to the financial statements
For the year ended 31 December 2020 (continued)
| 19. Debtors Group Group Charity 2020 2019 2020 £ £ £ Income tax recoverable 59,532 43,403 59,532 Other debtors and prepayments 1,224,243 933,873 1,221,076 Amounts due from subsidiary undertakings - - 264,299 1,283,775 977,276 1,544,907 All amounts shown under debtors fall due for payment within one year. 20. Creditors: amounts falling due within one year Group Group Charity 2020 2019 2020 £ £ £ Trade creditors 92,188 136,369 92,188 Other taxes and social security costs 31,016 27,099 31,016 Other creditors - - 1 Accruals 105,613 74,694 103,707 228,818 238,162 226,912 |
Charity 2019 £ 43,403 1,027,406 78,776 |
|---|---|
| 1,149,585 | |
| Charity 2019 £ 131,765 27,099 1 74,694 |
|
| 233,559 |
Page 32
The Horse Trust
Notes to the financial statements
For the year ended 31 December 2020 (continued)
21. Funds movement summary Group
| Unrestricted funds General funds Designated funds Charitable fixed assets BARTA Horse Trust Trading Future grants Awarded future grants Capital fund Restricted fund (note 22) Total accumulated funds |
Balance at 1 Jan 2020 £ 3,000,000 7,545,539 (64,619) (15,961) 1,500,000 1,509,751 13,093,291 26,568,001 77,534 26,645,535 |
Incoming resources £ 2,027,585 31,670 9,469 2,068,724 44,792 2,113,516 |
Resources expended £ (2,566,237) (195,084) (145,902) (15,079) (368,702) (3,291,004) (41,522) (3,332,526) |
Investment gains Transfers in Transfers out £ £ £ 538,652 458,385 (97,091) 16,093 (16,093) 16,093 980,724 (916,039) 980,724 1,029,223 (1,029,233) 980,724 1,029,223 (1,029,233) |
Balance at 31 Dec 2020 £ 3,000,000 7,711,749 (178,851) (21,571) 1,500,000 1,157,142 13,157,976 |
|---|---|---|---|---|---|
| 26,326,445 80,804 |
|||||
| 26,407,249 |
Page 33
The Horse Trust
Notes to the financial statements
For the year ended 31 December 2020 (continued)
| 21. Funds movement summary Charity Unrestricted funds General funds Designated funds Charitable fixed assets Future grants Awarded future grants Capital fund Restricted fund (note 22) Total accumulated funds |
Balance at 1 Jan 2020 £ 3,019,573 7,545,539 1,500,000 1,509,751 13,093,291 26,668,154 77,534 26,745,688 |
Incoming resources £ 2,027,585 2,027,585 44,792 2,072,377 |
Resources expended £ (2,566,237) (195,084) (368,702) (3,130,023) (41,522) (3,171,545) |
Investment gains Transfers in Transfers out £ £ £ 538,652 458,385 (97,091) 16,093 (16,093) 16,093 980,724 (916,039) 980,724 1,029,223 (1,029,223) 980,724 1,029,223 (1,029,223) |
Balance at 31 Dec 2020 £ 3,019,573 7,711,749 1,500,000 1,157,142 13,157,976 |
|---|---|---|---|---|---|
| 26,546,440 80,804 |
|||||
| 26,627,244 |
The general fund represents the operating reserves of the group and is approximately twelve months operating expenditure.
The designated funds are those funds designated at the discretion of the committee for particular purposes as detailed in the Trustee’s Report.
The charitable fixed assets fund represents fixed assets held for the Home’s use.
The future grants fund is for the purpose of making grants to equine/scientific projects in the future, the group awards approximately £500,000 per year in new research grants.
The awarded future grants fund represents the equine / scientific projects that have been awarded and will be paid out over the next three years.
Page 34
The Horse Trust
Notes to the financial statements
For the year ended 31 December 2020 (continued)
21. Funds movement summary
(continued)
The capital fund represents funds set aside to ensure a flow of income which is sufficient to support the future activities of the group including long term plans to issue grants for further scientific research. The fund was established during the year ended 31 December 1998 by a transfer from the general fund of £12,750,000.
The Restricted fund represents the balance of donations due to be applied for specific purposes determined by the donors, see Note 22.
Page 35
The Horse Trust
Notes to the financial statements For the year ended 31 December 2020 (continued)
22. Restricted funds
| CIC Formation Balance brought forward 2020 donations 2020 expenditure Balance carried forward Scholarship funding Balance brought forward 2020 donations 2020 expenditure Balance carried forward Healthy Horses Partnership Balance brought forward 2020 donations 2020 expenditure Balance carried forward Indoor arena fund Balance brought forward 2020 donations 2020 expenditure Balance carried forward Alborada Fund Balance brought forward 2020 donations 2020 expenditure Balance carried forward ECT Balance brought forward 2020 donations 2020 expenditure Balance carried forward Restricted fund total |
300 - - |
|---|---|
| 300 | |
| 6,045 25,992 (21,626) |
|
| 10,411 | |
| 1,965 - - |
|
| 1,965 | |
| 24,000 - - |
|
| 24,000 | |
| 40,000 - - |
|
| 40,000 | |
| 5,224 18,800 (19,896) |
|
| 4,128 | |
| 80,804 |
Page 36
The Horse Trust
Notes to the financial statements For the year ended 31 December 2020 (continued)
23. Analysis of net assets between funds
Group
| Unrestricted funds General fund Designated funds: Charitable fixed assets BARTA Trading Company Future grants Future awarded grants Capital fund Fund transfers Restricted funds |
Tangible Net current fixed assets Investments assets £ £ £ 1,759,184 1,240,816 7,775,749 (64,000) 2,331 (181,182) 11,006 (32,577) 1,500,000 1,157,142 12,914,277 243,699 (64,000) 64,000 7,725,086 17,330,603 1,270,756 64,000 16,804 7,789,086 17,330,603 1,287,560 |
Total £ 3,000,000 7,711,149 (178,851) (21,571) 1,500,000 1,157,142 13,157,976 26,326,445 80,804 |
|---|---|---|
| 26,407,249 |
Charity
| Unrestricted funds General fund Designated funds: Charitable fixed assets BARTA Trading Company Future grants Future awarded grants Capital fund Fund transfers Restricted funds |
Tangible Net current fixed assets Investments assets Total £ £ £ £ 1,778,757 1,240,815 3,019,572 7,775,749 (64,000) 7,711,749 1,500,000 1,500,000 1,157,142 1,157,142 12,914,277 243,699 13,157,976 (64,000) 64,000 - 7,711,749 17,350 ,176 1,484,514 26,546,439 64,000 16,804 80,804 7,775,749 17,350,176 1,501,318 26,627,244 |
Tangible Net current fixed assets Investments assets Total £ £ £ £ 1,778,757 1,240,815 3,019,572 7,775,749 (64,000) 7,711,749 1,500,000 1,500,000 1,157,142 1,157,142 12,914,277 243,699 13,157,976 (64,000) 64,000 - 7,711,749 17,350 ,176 1,484,514 26,546,439 64,000 16,804 80,804 7,775,749 17,350,176 1,501,318 26,627,244 |
|---|---|---|
| 26,546,439 80,804 |
||
| 26,627,244 |
Page 37
The Horse Trust
Notes to the financial statements For the year ended 31 December 2020 (continued)
24. Pensions
The charitable company operates a defined contribution plan and a group personal pension plan. The assets of both schemes are held separately from the group in independently administered funds. The pension cost charge of £112,505 (2019: £90,125) represents contributions payable to the funds.
25.
Material legacies
Legacy income is only included in incoming resources where receipt is reasonably certain and the amount is known with certainty, or the legacy has been received.
As at 31 December 2020 the group has also been notified of a number of legacies that are subject to life tenancies. These legacies have not been accrued for in the financial statements as the conditions of recognition had not been met. These legacies cannot be measured reliably however the best estimate of the value of these legacies is approximately £151,533 (2019: £151,533).
26. Reconciliation of net income/(expenditure) to net cashflow from operating activities
27.
| Net income for the reporting period Adjustments for: Depreciation charge Profit /loss on disposal of fixed assets Interest and dividend income shown in investing activities Net gains on investments Decrease/(increase) in stock Decrease/(increase) in debtors Increase/(decrease) in creditors nalysis of cash and cash equivalents Cash in hand Notice deposits (less than 3 months) |
Group 2020 £ (238,284) 218,117 12,330 (474,633) (980,724) 1,004 (307,870) 9,344 (1,760,716) Group 2020 £ 192,969 806,512 999,481 |
Group 2019 £ 1,505,469 180,422 (626,046) (2,206,116) (8,800) (57,338) 138,781 |
|---|---|---|
| (1,073,629) | ||
| Group 2019 £ 343,527 693,945 1,037,472 |
Analysis of cash and cash equivalents
Page 38
The Horse Trust
Notes to the financial statements For the year ended 31 December 2020 (continued)
28. Capital commitments
At 31 December 2020 the charitable company had capital commitments totalling £49,314 (2019: £nil). The commitment related to ongoing building work relating to the design, supply and erection of an extension to existing building and accompanying car park.
29. Related party transactions
The only related party transactions during 2020 are the transactions with The Horse Trust Trading Company Limited; a 100% wholly owned subsidiary. See note 31 for the trading results of the year ended 31 December 2020.
During the year, there were no expenses of paid to Trustees (2019: £5,938). No other payments were made to Trustees or any persons connected with them during this financial year or the prior period.
At the yearend 31 December 2020 there was a balance of £210,536 (2019: £98,064) owed from BARTA to the Charity. A revolving loan facility agreement is in place for up to £100,000, repayable at an interest rate of 2% above base rate.
30. Post Balance Sheet Events
On 17 May 2021 The Horse Trust entered into an agreement to purchase land for the sum of £400,000 adjacent to the Horse Trust site site in Speen, in North Dean. This Purchase was completed in June 2021.
Page 39
The Horse Trust
Notes to the financial statements For the year ended 31 December 2020 (continued)
31. Subsidiary results
The Charity owns the whole of the issued ordinary share capital of The Horse Trust Trading Company Limited, company number 08614961 and has control over British Animal Rescue and Trauma Care Association CIC, company number 08255580. Each entity is registered in England and details of their activities are given below.
The following results are for The Horse Trust Trading Company Limited;
| Profit and Loss account For the period ended 31 December 2020 Turnover Cost of sales Gross profit Administrative expenses Profit or (loss) for the financial year Balance sheet As at 31 December 2020 Fixed assets Tangible assets Current assets Debtors Cash at bank and in hand Total current assets Creditors: Amounts falling due within one year Net current assets/(liabilities) Total net assets/(liabilities) |
2020 £ 9,469 (2,185) 7,284 (12,893) (5,610) 2020 £ 11,006 224 21,456 21,680 (54,256) (32,576) (21,570) |
2019 £ 72,742 (19,277) |
|---|---|---|
| 53,465 (69,427) |
||
| (15,962) | ||
| 2019 £ 12,867 835 49,256 |
||
| 50,091 (78,920) |
||
| (28,829) | ||
| (15,962) |
Page 40
The Horse Trust
Notes to the financial statements For the year ended 31 December 2020 (continued)
31. Subsidiary results
(continued)
The following results are for British Animal Rescue and Trauma Care Association CIC.
| Profit and Loss account For the period ended 31 December 2020 Turnover Cost of sales Gross profit Administrative expenses Profit or (loss) for the financial year Balance sheet As at 31 December 2020 Fixed assets Tangible assets Current assets Stocks Debtors Cash at bank and in hand Total current assets Creditors: Amounts falling due within one year Net current assets/(liabilities) Total net assets/(liabilities) |
2020 £ 31,670 (19,296) 12,374 (126,305) (113,931) 2020 £ 2,331 3,000 2,943 24,824 30,767 (211,949) (181,182) (178,851) |
2019 £ 40,861 (79,765) |
|---|---|---|
| (38,904) (45,288) |
||
| (84,192) | ||
| 2019 £ 2,742 15,580 3,696 15,887 |
||
| 35,163 (102,524) |
||
| (67,361) | ||
| (64,619) |
Page 41