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2021-12-31-accounts

Registered number: 00037818 Charity numbers: 249255 and SC042853

NATIONAL SHEEP ASSOCIATION

(A COMPANY LIMITED BY GUARANTEE)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

NATIONAL SHEEP ASSOCIATION (A COMPANY LIMITED BY GUARANTEE)

CONTENTS

Page
Reference and administrative details of the Company, its Trustees and advisers 1 - 2
Trustees' report 3 - 11
Independent auditors' report on the financial statements 12 - 16
Statement of financial activities 17
Balance sheet 18
Statement of cash flows 19
Notes to the financial statements 20 - 42

NATIONAL SHEEP ASSOCIATION (A COMPANY LIMITED BY GUARANTEE)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2021

Trustees Mr D Gregory
Mr A Barr (Resigned 18 March 2021)
Mr E Thomas (resigned 6 May 2022)
Mr J Geldard (resigned 6 May 2022)
Ms A McFadzean
Mr H Dunn
Mr D Phipps
Mr T Ward
Mr P Myles
Mr P Delbridge
Mr J Farmer
Ms K Hovers (appointed 29 April 2021)
Mr B Griffiths (resigned 21 January 2021)
Mr A Alderson (appointed 6 May 2022)
Dr Y P Le Du (appointed 18 March 2021)
Mr A Foulds (appointed 18 March 2021)
Mr C Sercombe (appointed 18 March 2021)
Miss C Hughes (appointed 6 May 2022)
Company registered
number
00037818
Charity registered
numbers
249255 and SC042853
Registered office
The Sheep Centre
Malvern
Worcestershire
WR13 6PH
Honorary President
Lord Inglewood
Chief executive officer
Mr P Stocker
Independent auditors
Bishop Fleming LLP
Chartered Accountants
Statutory Auditors
1-3 College Yard
Worcester
WR1 2LB
Bankers
Lloyds Bank plc
Malvern
Worcestershire
WR14 4QG

Page 1

NATIONAL SHEEP ASSOCIATION (A COMPANY LIMITED BY GUARANTEE)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Solicitors

Solicitors Roythornes Enterprise Way Pinchbeck Spalding Lincolnshire PE11 3YR Investment advisors Rathbones George House 50 George Square Glasgow G2 1EH

Page 2

NATIONAL SHEEP ASSOCIATION (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

The Trustees present their Annual report together with the audited financial statements of the Company for the year 1 January 2021 to 31 December 2021. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Since the Company qualifies as small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Objectives and activities

a. Summary of objectives and activities

The charitable object of NSA is ‘to encourage and improve breeding, management and promotion of sheep as a species and as an activity in the UK and elsewhere in pursuit of advancing education, health, heritage, science, environmental protection and improvement and animal welfare for the public benefit’. There have been no material changes in the Association’s pursuance of its objects, in that NSA takes a broad interpretation of ‘promotion of the activity’ to encompass the setting up of private and public dialogue with organisations and individuals whose vested interests might affect beneficially or adversely the sheep industry.

Working within the remit of its charitable object, NSA has a vision for the UK sheep sector: This is stated as: ‘NSA believes in an optimum and resilient UK sheep population that is inherently healthy and able to cope with disease and parasite challenges. Diverse in its structure, contributing to feeding and providing fibre for an increasing global population, while adapting to the effects of and responding to the challenges of climate change and sustainable land management. We see our reputation being enhanced by working in harmony with areas of public interest – playing our part in mitigating global warming, improving our environment and ecology, enhancing landscapes, wise and responsible resource use, and protecting and creating culture and rural employment. Our vision is one of the people involved in keeping sheep being enthusiastic, knowledgeable and aspiring to best practice – and those not keeping sheep increasingly aware of the core aspects of sheep farming and appreciative of the contribution sheep make to society.’

In order to achieve this vison, NSA categorises its work into four pillars – economics, health, environment and society. All activities address at least one of these pillars, with membership being core to success. Maintaining membership (and even aspiring to grow it, despite the number of sheep farmers in the UK continuing to fall) is key to increasing engagement and assisting with the communication of messages to farmers and non-farmers. Providing a programme of activity to encourage and support young people is an overriding priority, to safeguard the future of the sheep sector and NSA itself.

In summarising activity in 2021, it is impossible not to focus on the continued impact of covid-19. NSA returned to face-to-face activities where possible but took learnings from 2020 to continue with virtual events and meetings where and when appropriate. It was a blow to have to cancel another year of sheep events, but still possible to offer plenty to the membership by combining smaller regional events, the usual ram sales, and NSA Next Generation activities, alongside a strong online offering. Engagement with non-farmers continued to strengthen, with online meetings and a growing social media reach.

b. Main objectives for the year

The main objectives for the year were all linked to delivery of the NSA vision for the UK sheep sector.

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NATIONAL SHEEP ASSOCIATION (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Objectives and activities (CONTINUED)

c. Main aims and significant activities for achieving objectives

NSA believes communication is key to delivering the NSA vision for the UK sheep sector, specifically to retain and recruit members, and ensure the association has the profile to be invited to and engaged with on key industry topics. Therefore, the main aim is to continually maintain and build on a variety of effective and meaningful communication routes. External communications are written consultation responses and verbal input to government select committees and other government-led meetings and forums, as well as press releases, public-facing information on the NSA website and public-facing social media posts. Internal communications (to the membership) are the NSA Weekly Email Update, Sheep Farmer magazine and direct emails, as well as online information and social media posts that will be seen by all sheep farmers, regardless of whether they are members. Communications were maintained and enhanced in 2021, with NSA invited to an increased range of government policy meetings and forums, a higher number of press releases issued, a website redesign initiated, and an increased social media reach.

Activity and communication were equal across the four pillars within the NSA vision. Public discussion about the environment was greater than ever before (in part due to the UK hosting COP26) and, while this led to increased activity by NSA to talk about sheep being part of the solution for many environmental challenges, the four pillars are so intertwined there was dialogue about all of them. For example, the importance of sheep being profitable in order to engage and invest in environmentally sound practices, the impact of healthier animals on carbon footprints, and the societal value of managed rural environments.

d. Volunteers

The work of NSA is only possible due to the many volunteers who work tirelessly on behalf of the organisation, from the officeholders who represent the views of their regions on various committees, to the volunteers who organise regional events and ram sales. The Trustees take this opportunity to thank all those who contributed in any way to NSA and the sheep industry in 2021, tolerating yet another year of uncertainty, altered plans and virtual meetings due to covid-19.

e. Main activities undertaken to further the Company's purposes for the public benefit

As outlined in the NSA vision for the sheep sector, sheep farming provides a plethora of public goods. In 2021, NSA ensured sheep farmers had access to information to maintain and increase their contribution to the economy, health, the environment and society. It also clearly and consistently communicated to policymakers, appropriate bodies and the public that sheep and sheep farming have a clear public benefit and can enhance this further still with the right post-Brexit policy framework.

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NATIONAL SHEEP ASSOCIATION (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Achievements and performance

a. Main achievements of the Company

Having outlined the main aims and the significant activities for achieving objectives, NSA reports a number of highlights for 2021.

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NATIONAL SHEEP ASSOCIATION (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Achievements and performance (CONTINUED)

b. Key performance indicators

Work was initiated in 2021 to review the NSA Strategy, which resulted in an updated strategy and clearer KPIs being agreed for 2022 and beyond. These indicators of success are as follows.

c. Review of activities

Structures are in place for regular reviews of activity, primarily through quarterly Board meetings, but also regular Senior Management Meetings and quarterly reporting structures.

d. Factors relevant to achieve objectives

An effective staffing structure at NSA Head Office and regional network of committees and officeholders is key to NSA achieving its objective. Finding the right balance between online and face-to-face meetings/activities will be essential going forward, with varying views within the organisation about the importance of personal contact versus saving time and money by reducing travel. These factors need to be carefully monitored and debated.

e. Fundraising activities and income generation

NSA continues to spread its risk by bringing in income from membership subscriptions, sponsorship, events, project funding and other sources, rather than relying solely on one source. All income streams and significant expenditure continue to be monitored regularly, but there are no significant changes to report in relation to 2021.

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NATIONAL SHEEP ASSOCIATION (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Achievements and performance (CONTINUED)

f. Investment policy and performance

The NSA Head Office investment with Rathbones is on a medium risk tolerance with the performance viewed in the medium/long term (three to five-year cycles). Rathbones has the discretion to manage the portfolio based on an investment policy agreed by Trustees, and it reports quarterly to the Board. Investments by NSA regions and ram sales are managed in a similar way, and improvements have been made to the information presented on a regular basis to the Trustees, so they regularly see the picture across the whole of the association. Overall, the performance of the investments in 2021 was satisfactory, particularly considering the volatile global situation / continuing impact of covid-19.

Financial review

a. Overview

The financial position of the NSA remained strong throughout 2021; at year end the total reserves were £1,794,567 (2020 £1,715,435). NSA maintained a flexible balance between investments and working capital, as shown on page 17. This financial flexibility has been a key factor in NSA being able to cope with the particular challenges experienced in 2021, as was also the case in 2020.

Despite the reduction in income from sheep events, the deficit for the year was contained to £11,020 – excluding gains/losses on investments. These totalled £90,152 of gains for the year and, therefore, resulted in a net increase in funds of £79,132 when these are included. This is equivalent to a 4.6% increase in overall funds. NSA has a number of strong income streams, in particular from membership subscriptions, which means the association is not solely reliant on event income to support its activities. This income spread is illustrated on page 17 and the supporting notes.

b. Going concern

The National Sheep Association has neither the intention or the need to cease its work or significantly reduce the scale of its work. The NSA Trustees routinely discuss risks and potential risks to the association and expenditure and income across the entire association is closely monitored. Should income fall below our projections, the association has reserves which can be drawn on if required. NSA has come through one of the most challenging periods in recent history – with covid-19 forcing the cancellation of two years of NSA sheep events, and Brexit posing an unprecedented risk to the sheep farmers who make up the association’s membership. However, the UK sheep sector has had a period of good prices and the loss of trade and exodus of farmers from the sector that was feared at one time has been avoided. The loss of income from NSA sheep events has been felt, but the association has reacted appropriately, managed the risk, and will ‘come back with a bang’ with the industry crying out for the return of the NSA Sheep Event and NSA Scot Sheep in 2022 and other regional sheep events in 2023. NSA learnt a great deal through the global pandemic, and the move of membership recruitment to be a solely online activity in the absence of face-to-face events, means it has a robust, hybrid model for the future. This ensures vital membership income, but it is important for NSA not to be reliant on this or any other single income stream. Therefore the spread of drawing funds from membership subscriptions, sponsorship, events, funding bids etc, is continually under review to ensure NSA adapts to change and initiates new ideas and developments.

c. Reserves policy

The level of free reserves held by NSA at the year-end of 2021 amounted to £1,120,790 (2020 £1,014,903). These free reserves are held in Head Office and are sufficient to cover more than one month's salary costs. This is felt to be sufficient, as the major costs incurred here are covered by subscription income, which is relatively secure. The Trustees believe that, ideally, the reserves in the NSA Rams Sales should be equivalent to 12 months of expenditure and the reserves in the NSA Regions should be equivalent to 24 months of expenditure, as these are the periods between the major fundraising events where income is generated. While this has been achieved in most Regions, they are mindful of problems in the industry over previous years and, therefore, the ideal level will not be attained quickly for all regions.

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NATIONAL SHEEP ASSOCIATION (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

The Trustees feel the current level of reserves is appropriate for the current work of NSA, including Head Office work, regional activities and ram sales. The Trustees feel the most appropriate investment for the liquid assets of NSA is to use a deposit account to ensure accessibility. Historically, NSA has operated with significant reserves, as membership subscription income is mainly received in the first part of the year and reserves were kept for easy access if needed in the later part of the year. However, improvements to cashflow predictions have been made and the policy now is to operate with minimal reserves and optimise investments. Steps were taken in 2021 in progress this and NSA is in the advanced stages of finalising a written policy for the Trustees to sign off and regularly review.

d. Investments policy

As stated in the previous section of this report, the NSA Head Office investment is with Rathbones on a medium risk tolerance with the performance viewed in the medium/long term. Rathbones has the discretion to manage the portfolio based on an investment policy agreed by Trustees, and (alongside the reserves policy) NSA is in the advanced stages of updating a written investment policy to sit alongside the reserves policy.

e. Principal risks and uncertainties

NSA has a risk register, which is reviewed by the Trustees on a six-monthly basis. The risk register is split into two parts – external risks such as risks within the sheep sector that may impact the financial ability of sheep farmers to pay a membership subscription – and internal risks such as loss of key staff members. Steps have already been taken to mitigate risks that are within NSA’s control, partly through ongoing improvement to financial and reporting systems, and partly through the review of the NSA Strategy, as mentioned elsewhere in this document. There is nothing of concern to report in relation to 2021.

f. Fundraising policy

NSA does not use professional fundraisers and does not fundraise through public appeals. It did not receive any complaints about fundraising activities in 2021. The Association’s principal funding is through membership subscriptions from people working in the sheep industry, and corporate sponsorship packages for commercial companies wanting to work with NSA. Apart from membership subscriptions, the major fundraising activities are the organisation of business-to-business NSA Sheep Events, the sale of advertising, and to a much lesser extent, occasional activities such as the purchase of raffle tickets at shows and events. NSA occasionally manages to access grant and statutory funding. In 2021 this included two EU-funded projects spanning 2021 and 2022. NSA occasionally received legacies, but this was not the case in 2021. NSA continued to make an annual Gift Aid claim from HMRC. All events and activities have budgets prepared in advance having regard to risks. The content and sponsors of events are chosen by committees to be appropriate to the aims of the Association. The event organisers and event committees meet regularly to review progress and budgets and there are financial controls in place to reduce the risk of fraud and financial loss. There is regular liaison and reporting between regions, ram sales and head office to monitor fundraising activities.

g. Principal funding

This continues to be membership subscriptions, with other income streams listed above contributing to an important extent.

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NATIONAL SHEEP ASSOCIATION (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Structure, governance and management

a. Constitution

During 2021 National Sheep Association was a Company Limited by Guarantee governed by its Memorandum and Articles of Association dated 21st December 1892 and most recently amended at the 2015 AGM to allow for current governance. NSA is registered as a Private Company Limited by Guarantee without share capital and is a Registered Charity. In the event of the Association being wound up members may be required to contribute a sum not exceeding £1.

b. Methods of appointment or election of Trustees

There were 16 Trustees, who are also directors for the purpose of company law, who served during 2021. Two Trustees reached the end of their terms in 2021 and, due to there being a vacant position unfilled in 2020, three new Trustees were elected in 2021.

Between the end of the financial year and the production of this report, an additional two trustees reached the end of their terms and were replaced.

One Trustee was nominated by each of the six NSA regions in England (six Trustees in total). Three were nominated by NSA Cymru/Wales Region, two by NSA Scottish Region and one by NSA Northern Ireland Region. One Trustee acts as Honorary Treasurer to NSA, as elected at the Annual General Meeting each year, and one Trustee acts as Chairman of the Directors, as elected by the Board of Directors (subject to the provision of article 44). There is a rota for retirement of Trustees and they are nominated by regions at their annual regional members’ meetings. When a regional nomination is accepted by the Board of Directors, the incoming individual is informed of their responsibilities and duties as a Trustee Directors and given copies of Charity Commission guidance and NSA printed information. The plan from 2022 onwards is to enhance this with further induction/training for incoming Trustees, to ensure Trustees have an in-depth understanding of the whole NSA structure and operations from the outset.

c. Organisational structure and decision-making policies

The Trustee Directors administer the Charity and Company. There are four Board meetings each year, plus interim meetings where appropriate. The Trustees delegate responsibility to the NSA Finance & General Purposes Committee, to look at quarterly budgetary information and operational detail. This sub-committee meets a minimum of three times per year. Work was carried out in 2021 to review this sub-committee, with it being disbanded and replaced with an NSA Finance Scrutiny Committee from January 2022. This was to reflect that information sharing and reports to the Board have improved over time and, going forward, the new committee will look at specific finance topics in detail, as requested by the Board, rather than being delegated to have a general view. Separate to this, the Trustees also delegate responsibility to the NSA Policy & Technical Committee to discuss NSA positions and activity on regulation, policy, research and development work affecting the sheep sector. This sub-committee meets a minimum of four times a year. Each of the devolved nations has its own committee, as well as six regional committees in England feeding into the NSA English Committee. The Chief Executive manages the day-to-day operations, having regard to the decisions of the Board.

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NATIONAL SHEEP ASSOCIATION (A COMPANY LIMITED BY GUARANTEE)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Structure, governance and management (CONTINUED)

d. Management and staff in 2021

Phil Stocker continued as NSA Chief Executive in 2021 and led a team of 12 employed staff including himself – five full-time, five part-time and two on zero hours contracts that vary depending on volumes of work (plus one part-time individual on maternity leave for the majority of the year and covered by other individuals in the headcount of 12). The Policy & Technical Officer employed to cover the maternity leave took a temporary fulltime contract to both cover the Technical Officer on maternity leave and the Policy Officer not replaced in October 2020. This worked on a short-term basis but, combined with the review of the NSA Strategy initiated in 2020, it became clear that staff were stretched and the organisation was at risk from not having enough seniority within the staffing structure. A Senior Management Team (involving the salaried Chief Executive and Operations Director plus the Trustees serving as Chairman and Honorary Treasurer) was formalised and began to meet regularly. Additional steps were also initiated in late 2021 with a revised staffing structure put in place in early 2022 with a Communication Manager, Project Manager and Policy Manager appointed to better cover the volume of work and introduce a level of seniority beneath the Senior Management Team. An additional role was also identified at this time, to be filled in mid-2022, to further develop NSA Next Generation activity and support NSA regions where they need. This will increase the head count in 2022 to 14 employed staff – six full-time, six part-time and two on zero hours contracts.

e. Pay policy for key management personnel

The Trustees discuss and approve the annual budget, which includes a total salary figure for all staff. All staff receive an annual appraisal, which helps inform the Chief Executive’s proposal for individual salaries within that total figure. The NSA Chairman and NSA Honorary Treasurer consider these individual salaries on a confidential basis, and also provide an annual appraisal for the Chief Executive and decide the salary for this role. In addition to salaries, all staff can claim expenses in line with the set expenses policy.

f. Related party relationships

During 2021 sponsorship/advertising income was received from five companies with a link to an NSA Trustee or key officeholder. The combined income for these was £3,690. Also during the year, payments were made to one company owned/part-owned by an NSA Trustee (for consultancy services separate to the Trustee’s role on the NSA Board), to one company owned/part-owned by an NSA employee (for freelance photography services separate to the employee’s NSA role) and to two companies owned/part-owned by an NSA regional manager (as these regional managers provide their services via these two companies). The combined expenditure across four companies was £16,721. Income received from and expenditure with related parties was in pursuit of NSA’s charitable objectives. An additional note for 2021 is that NSA employed a direct family member of a key officeholder, and paid an honorarium to an NSA regional manager who was a direct family member of a regional officeholder. There are no related parties that either control or significantly influence the decisions and operations of NSA.

g. Financial risk management

As stated in the previous section of this report, NSA has a risk register that is reviewed by the Trustees on a sixmonthly basis. Financial risks are a specific part of the risk register, including loss of subscription income and loss of sponsorship income. These are key priorities for relevant staff members, with monthly internal meetings and workstreams dedicated to membership recruitment and retention, and regular sharing of information within the Head Office team and regional officeholders about sponsorship opportunities and the range of commercial companies we maintain healthy working relationships with. The risk of losing sponsorship income became a reality in 2020 and 2021, due to covid-19 cancelling two years’ worth of NSA sheep events – but because NSA understood the impact this would have on the whole organisation, Head Office and the regions reacted appropriately and continue to monitor the ongoing affect of that loss of income.

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NAnoNAL SHEEP ASSOCIATION IA COMPANY LIMITED BY GUARANTEEI TRUSTEES. REPORT {CONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2021 structure, g¢)vomance and manag•m•Trt (CONTINUED h. Truste￿. Ind•mnltl Each member of NSA, including the Trustees, undertakes to contribute lo the assets of the wmpany in the event of il being wound up while they are a member. or within one year after they cease lo be a member, such amount as may be required, not exceeding £1 for the deb15 and liability contracted before they cease to be 8 member. STATEMENT OF TRUSTEES. RESPONSIBILITIES The Trustees (who are also the directors of the Company ftir the purposes of uimpany lawl are responsible for preparing the Trustees, report and the financial slalernents in accordance with applicable law and United Kingdom AC￿Vn￿'n9 Standards (United Kingdom Generally Accepted Accountsng Practice). Company law requires the Trustees lo prepare financial slalemenls for each financial year. Under ¢ompany1oW, the Trustees musl not approve the financial slalements unless they are satisfied that they gNe a true and fair view of the slate of affairs of the Company and of its incoming resources and application of resources, including its ineome and expenditure, for that pèriod. In preparing these financial statements. the Trustees are required to.. select suitsble accounts'ng policies and then apply them consistently., observe the methods and principles of the Charities SORP IFRS 1021., make judgment5 and accounting eslimales that are reasonable and prudent., stale whether appllcable UK Accounting Stsndards IFRS 1021 have been followed. subJe¢t to any material departures éisclosed and explained in the financial ststemenls., prepare the financial statements on the goin9 concem basis unless it is inappropriate to presume Ihal the Company will continue in business. The Truslees are responsible for keeping adequate accounting records that are sufficient lo show and explain the Companws transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply wlh the Compans Act 2006. They are also responsible foi safeguarding the assets of the Company and hen￿ for taking reasonable steps for the preventK)n and ¢Jetection of fraud and other Irregularities. Dls¢losur• of Inftlmiatlon to •udltorn Each of the persons who are Trustees al the time when this Trustees, report is approved has ￿nffirmed that.. so far as that Trustee is aware, there is no relevant audit information of which the charity5 auditors are unaware, and that Trustee has taken all the steps that ought lo have been L7ken as a Trustee in order lo be aware of any relevant audit infomiation and to establish that the Charitys auditors are aware ol that infomation. Audltor The auditors, Bishop Fleming LLP, have indicatsd their willingness to continue in tsffi￿. The designated Trustees wiu propose a motion ieapwinling the auditors al a meetsng ol the Trustees. Approved by order of the members of the board of Trustees and slgned on theii beharr by.. Mr D Grollory Treasurer Date. Mr D Phlpp8 Chair .18lioLL Page 11

NATIONAL SHEEP ASSOCIATION (A COMPANY LIMITED BY GUARANTEE)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NATIONAL SHEEP ASSOCIATION

OPINION

We have audited the financial statements of National Sheep Association (the 'charitable company') for the year ended 31 December 2021 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

CONCLUSIONS RELATING TO GOING CONCERN

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

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

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

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NATIONAL SHEEP ASSOCIATION (A COMPANY LIMITED BY GUARANTEE)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NATIONAL SHEEP ASSOCIATION (CONTINUED)

OTHER INFORMATION

The other information comprises the information included in the Annual report other than the financial statements and our Auditors' 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, 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.

OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

In our opinion, based on the work undertaken in the course of the audit:

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:

RESPONSIBILITIES OF TRUSTEES

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

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

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NATIONAL SHEEP ASSOCIATION (A COMPANY LIMITED BY GUARANTEE)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NATIONAL SHEEP ASSOCIATION (CONTINUED)

AUDITORS' RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 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 Auditors' 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Identifying and assessing potential risks related to irregularities;

The procedures undertaken in order to identify and assess risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, are as follows:

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the Charity operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Charities SORP (FRS 102) - Accounting and Reporting by Charities and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

In addition, we have considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Charity's ability to operate or to avoid a material penalty. These include data protection regulations, health and safety regulations and employment legislation.

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NATIONAL SHEEP ASSOCIATION (A COMPANY LIMITED BY GUARANTEE)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NATIONAL SHEEP ASSOCIATION (CONTINUED)

Audit response to risks identified:

As a result of performing the above procedures, we have identified revenue recognition and accounting estimates as key audit matters related to the potential risk of fraud. Our procedures to respond to risks identified included the following:

We also communicated relevant laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from an error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.

USE OF OUR REPORT

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company's trustees, as a body, in accordance with regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members and Trustees those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Page 15

NATIONAL SHEEP ASSOCIATION (A COMPANY LIMITED BY GUARANTEE)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NATIONAL SHEEP ASSOCIATION (CONTINUED)

Andrew Wood FCCA (Senior statutory auditor)

for and on behalf of Bishop Fleming LLP Chartered Accountants Statutory Auditors 1-3 College Yard Worcester WR1 2LB Date: 16th August 2022

Bishop Fleming LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 16

NATIONAL SHEEP ASSOCIATION (A COMPANY LIMITED BY GUARANTEE)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2021

Note
Income from:
Donations and legacies
4
Charitable activities
5
Other trading activities
6
Investments
7
Other income
8
Total income
Expenditure on:
Charitable activities
9
Total expenditure
Net (expenditure)/income before net
gains/(losses) on investments
Net gains/(losses) on investments
Net income/(expenditure)
Transfers between funds
21
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2021
£
36,369
632,801
38,597
48,210
10,533
766,510
785,682
785,682
(19,172)
90,152
70,980
(4,391)
66,589
1,696,790
66,589
1,763,379		 Restricted
funds
2021
£
17,259
44,361
-
-
-
61,620
53,468
53,468
8,152
-
8,152
4,391
12,543
18,645
12,543
31,188		 Total
funds
2021
£
53,628
677,162
38,597
48,210
10,533
828,130
839,150
839,150
(11,020)
90,152
79,132
-
79,132
1,715,435
79,132
1,794,567		 Total
funds
2020
£
51,907
505,398
34,748
44,714
27,644
664,411
734,513
734,513
(70,102)
(4,166)
(74,268)
-
(74,268)
1,789,703
(74,268)
1,715,435

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 20 to 42 form part of these financial statements.

Page 17

NATIONAL SHEEP ASSOCIATION IA COMPANY LIMITED BY GUARANTEEI REGISTERED NUM8ER:00037818 BALANCE SHEEr AS AT 31 DECEMBER 2021 2021 2020 Not• Flx•d assets Tangib￿ a$8ets Investments Investment property 14 16 15 177.099 959,527 360,000 180.853 879.378 350.000 1,486,626 1,410,231 Cuft•nt •$•ets Stocks Debtors 17 18 3,048 83,145 634785 3.147 87,017 602.679 Cash at bank and in hand 620,978 692.843 Creditors.. amounts f811ing due within one year 19 1313,037) {337,6391 Net current as$et• 307,941 35S,204 Total ass￿ le•• ¢urrènt li•bllitlè8 1,794,567 1.765.435 Creditors.. amounts fallir¢g due after more than orbe year 20 150.0001 Not assets •xcludlng penslon •$t•¢ 1,794.567 1.715.435 Total n•t *ss•ts 1,794,567 1,715,435 Charfty funds Restricted fvnds Unrestricted ftjnds 21 21 31,188 1.763.379 18,645 1,696,790 Total lund8 1,794,567 1,715,435 The Trustees acknowledge th6ir responsibilities for complyng wth the requirements of the Act wth respect to accounting records and preparation of financial Statements. The financi81 slalements have been prepared in accordance wth the provisions applicable lo entities subFct to the small Companies regime. The financial statements were appmved and authorised for issue by the Trustees and signed on their behalf by.. Mr D Gr•go Tr&a$ureT Date.. iol&lzoLL The notes on pages 2010 42 form part of these financial statements. Mr D Phlp Chair Page 18

NATIONAL SHEEP ASSOCIATION (A COMPANY LIMITED BY GUARANTEE)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Dividends, interests and rents from investments
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
Proceeds from sale of investments
Purchase of investments
Revaluation of investments
Net cash used in investing activities
Cash flows from financing activities
Cash inflows from new borrowing
Repayments of borrowing
Net cash (used in)/provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
The notes on pages 20 to 42 form part of these financial statements		 2021
£
115,854
(48,210)
760
(6,149)
193,444
(183,441)
(90,152)
(133,748)
-
(50,000)
(50,000)
(67,894)
602,679
534,785		 2020
£
101,038
(44,714)
-
(3,185)
77,182
(55,219)
4,166
(21,770)
50,000
-
50,000
129,268
473,411
602,679

Page 19

NATIONAL SHEEP ASSOCIATION (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1. GENERAL INFORMATION

National Sheep Association is a private charitable company limited by guarantee incorporated in England and Wales. The registered office is The Sheep Centre, Blackmore Park Road, Malvern, Worcetershire, WR13 6PH.

2. ACCOUNTING POLICIES

2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

National Sheep Association 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.

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

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

2.2 GOING CONCERN

The National Sheep Association has neither the intention or the need to cease its work or significantly reduce the scale of its work. The NSA Trustees routinely discuss risks and potential risks to the association and expenditure and income across the entire association is closely monitored. Should income fall below our projections, the association has reserves which can be drawn on if required. NSA has come through one of the most challenging periods in recent history – with covid-19 forcing the cancellation of two years of NSA sheep events, and Brexit posing an unprecedented risk to the sheep farmers who make up the association’s membership. However, the UK sheep sector has had a period of good prices and the loss of trade and exodus of farmers from the sector that was feared at one time has been avoided. The loss of income from NSA sheep events has been felt, but the association has reacted appropriately, managed the risk, and will ‘come back with a bang’ with the industry crying out for the return of the NSA Sheep Event and NSA Scot Sheep in 2022 and other regional sheep events in 2023. NSA learnt a great deal through the global pandemic, and the move of membership recruitment to be a solely online activity in the absence of face-to-face events stands means it has a robust, hybrid model for the future. This ensures vital membership income, while the model of not relying on subscriptions alone, but also drawing funds from sponsorship, events, funding bids etc, is continually under review to ensure NSA adapts to change and initiates new ideas and developments.

Page 20

NATIONAL SHEEP ASSOCIATION (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

2. ACCOUNTING POLICIES (continued)

2.3 INCOME

All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

2.4 EXPENDITURE

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Company's objectives, as well as any associated support costs.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

2.5 TANGIBLE FIXED ASSETS AND DEPRECIATION

Tangible fixed assets costing £200 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Page 21

NATIONAL SHEEP ASSOCIATION (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

2. ACCOUNTING POLICIES (continued)

2.5 TANGIBLE FIXED ASSETS AND DEPRECIATION (CONTINUED)

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, on a reducing balance basis and on a straight line basis.

Depreciation is provided on the following bases:

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of financial activities.

2.6 INVESTMENTS

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of financial activities.

Investment property, which is property held to earn rentals and/or capital appreciation, is measured using the fair value model and stated at its fair value as the reporting end date. The surplus or deficit on revaluation is recognised in net income/(expenditue) for the year. No depreciation is charged on investment property.

Although this accounting policy is in accordance with FRS102 section 16, the lack of depreciation is a departure from the general requirement of the Companies Act 2006 for all tangible assets to be depreciated. In the opinion of the trustees, compliance with the standard is necessary for the financial statements to give a true and fair view and in all other respects the Charity has complied with the Act. As a result, the value of investment property in the balance sheet is higher, and the depreciation charge in the statement of financial activities lower than they would be under the requirements of the Act.

2.7 STOCKS

Stocks are stated at the lower 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 stock to their present location and condition. Items held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost.

2.8 DEBTORS

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.9 CASH AT BANK AND IN HAND

Cash at bank and 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.

Page 22

NATIONAL SHEEP ASSOCIATION (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

2. ACCOUNTING POLICIES (continued)

2.10 LIABILITIES AND PROVISIONS

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.

2.11 FINANCIAL INSTRUMENTS

The Company 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.

2.12 OPERATING LEASES

Rentals paid under operating leases are charged to the Statement of financial activities on a straight line basis over the lease term.

2.13 PENSIONS

The Company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Company to the fund in respect of the year.

2.14 FUND ACCOUNTING

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

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. 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 or which have been raised by the Company for particular purposes. The costs 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.

Investment income, gains and losses are allocated to the appropriate fund.

Page 23

NATIONAL SHEEP ASSOCIATION (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

3. CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGMENT

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

Estimated useful lives of tangible fixed asset s

In determining the estimated useful life the Charity considers the expected physical wear and tear of the asset that could lead to obsolecence of the asset. Each year the Charity reviews the above to establish if there is any change in the expected useful life of tangible assets.

The Company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Critical areas of judgment:

Investment property valuation

The investment property is held at fair value and the orignal valuation was carried out on 25 June 2015 by Charles Knowles, a RICS registered firm. It was arrived at by reviewing the market for transaction prices for similar properties. Each year the Charity reviews this valuation, to determine whether they still considered this to be accurate at the year end.

Deferred subscription income

Annual membership renewals occur throughout the year, so when the charity receives member's subscription income in the current year, some of this may relate to the following year. This part is treated as deferred income in the current accounting period and will be recognised in the statement of Financial Activities in the following accouting period.

4. INCOME FROM DONATIONS AND LEGACIES

Unrestricted
funds
2021
£
Donations
36,369
Grants
-
Government grants
-
36,369
TOTAL 2020
39,154		 Restricted
funds
2021
£
-
10,000
7,259
17,259
12,753		 Total
funds
2021
£
36,369
10,000
7,259
53,628
51,907		 Total
funds
2020
£
39,154
-
12,753
51,907

Page 24

NATIONAL SHEEP ASSOCIATION (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

5. INCOME FROM CHARITABLE ACTIVITIES

Unrestricted
funds
2021
£
Ram Sales
111,126
Sheep Farmer Advertising
123,352
Other Charitable Income
36,894
Sustainable Control of Parasites in Sheep
14,394
Membership Services
347,035
RoSA project
-
RDPE Moredun project
-
Erasmus project
-
632,801
TOTAL 2020
501,382		 Restricted
funds
2021
£
-
-
1,000
-
-
1,354
20,400
21,607
44,361
4,016		 Total
funds
2021
£
111,126
123,352
37,894
14,394
347,035
1,354
20,400
21,607
677,162
505,398		 Total
funds
2020
£
9,356
101,217
44,039
3,425
347,361
-
-
-
505,398

6. INCOME FROM OTHER TRADING ACTIVITIES Income from non charitable trading activities

Unrestricted
funds
2021
£
Fundraising events
38,597
TOTAL 2020
34,748		 Total
funds
2021
£
38,597
34,748		 Total
funds
2020
£
34,748

Page 25

NATIONAL SHEEP ASSOCIATION (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

7. INVESTMENT INCOME

Unrestricted
funds
2021
£
Rental income
20,531
Investment income
27,593
Interest receivable
86
48,210
TOTAL 2020
44,714
8.
OTHER INCOMING RESOURCES		 Total
funds
2021
£
20,531
27,593
86
48,210
44,714		 Total
funds
2020
£
20,515
23,776
423
44,714
Other income
Promotional items
P & O Booking Service
TOTAL 2020		 Unrestricted
funds
2021
£
9,424
98
1,011
10,533
27,644		 Total
funds
2021
£
9,424
98
1,011
10,533
27,644		 Total
funds
2020
£
5,446
433
21,765
27,644

Page 26

NATIONAL SHEEP ASSOCIATION (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

9. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES

Summary by fund type

Unrestricted
funds
2021
£
Breeding Improvement Other Costs
61,923
Membership Services and Enquiries
90,368
Education and Promotion Other Costs
473,765
Fundraising Costs
159,626
785,682
TOTAL 2020
717,783		 Restricted
funds
2021
£
-
-
53,468
-
53,468
16,730		 Total
funds
2021
£
61,923
90,368
527,233
159,626
839,150
734,513		 Total
funds
2020
£
25,330
89,485
496,883
122,815
734,513

10. ANALYSIS OF EXPENDITURE BY ACTIVITIES

Breeding Improvement Other Costs
Membership Services and Enquiries
Education and Promotion Other Costs
Fundraising Costs
TOTAL 2020		 Activities
undertaken
directly
2021
£
61,923
5,574
203,247
64,855
335,599
234,780		 Support
costs
2021
£
-
84,794
323,986
94,771
503,551
499,733		 Total
funds
2021
£
61,923
90,368
527,233
159,626
839,150
734,513		 Total
funds
2020
£
25,330
89,485
496,883
122,815
734,513

Page 27

NATIONAL SHEEP ASSOCIATION (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

10. ANALYSIS OF EXPENDITURE BY ACTIVITIES (CONTINUED)

ANALYSIS OF DIRECT COSTS

Breeding
Improvement
Other Costs
2021
£
SCOPS
-
iSage
-
Sheep Farmer
costs
-
Design and Printing
-
Next Generation
Ambassadors
-
Branding and
Merchandise
-
Moredun Initiative
-
DBEIS Grant
Expenditure
-
Regional
Secretaries &
Officers fees
-
Membership
Promotion
-
Ram sale expenses
52,928
Storage of Semen
8,481
P & O Expenditure
514
Subscriptions for
other bodies
-
Awards and
Donations
-
Costs of generating
funds
-
RoSA project
-
RDPE Moredun
project
-
Erasmus project
-
61,923
TOTAL 2020
98,313		 Membership
Services and
Enquiries
2021
Education and
Promotion
Other Costs
2021
Fundraising
Costs
2021
£
£
£
-
2,283
-
-
-
-
-
67,171
-
-
13,933
-
-
4,471
-
-
1,090
-
-
7,501
-
-
-
-
-
57,308
-
5,574
-
-
-
-
-
-
-
-
-
-
-
-
2,631
-
-
1,050
-
-
-
64,855
-
3,818
-
-
40,470
-
-
1,521
-
5,574
203,247
64,855
4,249
177,650
27,551		 Total
funds
2021
£
2,283
-
67,171
13,933
4,471
1,090
7,501
-
57,308
5,574
52,928
8,481
514
2,631
1,050
64,855
3,818
40,470
1,521
335,599
234,780		 Total
funds
2020
£
2,217
2,028
72,262
15,751
3,997
2,859
10,000
10,066
55,018
4,249
864
7,128
17,338
3,092
360
27,551
-
-
-
234,780

Page 28

NATIONAL SHEEP ASSOCIATION (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

10. ANALYSIS OF EXPENDITURE BY ACTIVITIES (CONTINUED)

ANALYSIS OF SUPPORT COSTS

Membership
Services
and
Enquiries
2021
£
Staff costs
63,582
Staff costs - Governance
-
Depreciation
1,668
Printng, Photocopying, Postage
& Stationery
3,874
General office expenses
46
Telephone, Computer &
Website
4,785
Travelling expenses &
Subsistences
3,458
Rates, Utilities & Insurance
3,390
Property Repairs
463
Legal & Professional
286
Accountancy
679
Bank Charges
560
Bad Debts
2,003
Governance - Audit Fees
-
Board and AGM Meeting Costs
-
84,794
TOTAL 2020
96,552
11.
AUDITORS' REMUNERATION		 Education
and
Promotion
Other Costs
2021
£
194,485
44,881
6,218
14,536
174
18,015
13,084
12,761
1,743
1,076
2,556
2,108
(1,180)
10,575
2,954
323,986
339,707		 Fundraising
Costs
2021
£
71,062
-
1,865
4,330
52
5,348
3,866
3,788
517
320
759
626
2,238
-
-
94,771
142,911		 Total
funds
2021
£
329,129
44,881
9,751
22,740
272
28,148
20,408
19,939
2,723
1,682
3,994
3,294
3,061
10,575
2,954
503,551
499,733		 Total
funds
2020
£
326,353
46,207
9,724
12,103
5,006
27,637
20,588
18,511
2,157
1,692
12,395
2,620
3,536
10,075
1,129
499,733
2021 2020
£ £
Fees payable to the Company's auditor for the audit of the Company's
annual accounts 10,575 10,075

Page 29

NATIONAL SHEEP ASSOCIATION (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

12. STAFF COSTS

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes
Wages and salaries included within governance		 2021
£
277,500
26,677
24,952
44,881
374,010		 2020
£
281,210
17,397
27,746
46,207
372,560

The average number of persons employed by the Company during the year was as follows:

2021 2020
No. No.
Employees 13 13

The charity paid regional secretaries on an honorarium and subcontractor basis:

Regional Secretaries and Officers
Ram Sales Secretaries and Officers
Regional Event Managers		 2021
No.
11
5
2
18		 2020
No.
8
1
1
10

Note that some of the secretaries and officers act for several different regions and activities. Such officers have only been counted once in the number of officers detailed above and are allocated to the regional activity that they are most associated with. The following payments to these officers were made:

2021 2020
£ £
Regional Secretaries and Officers 28,858 30,945
Ram Sales Secretaries and Officers 28,450 25,500
Regional Events Managers 16,000 9,000

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2021 2020
No. No.
In the band £70,001 - £80,000 - 1
In the band £80,001 - £90,000 1 -

Page 30

NATIONAL SHEEP ASSOCIATION (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

13. TRUSTEES' REMUNERATION AND EXPENSES

During the year, one or more Trustees has been paid remuneration or has received other benefits from an employment with the Company. The value of Trustees' remuneration and other benefits was as follows:

2021 2020
£ £
Mr D Gregory Other benefits 4,702 10,200

During the year ended 31 December 2021, expenses totalling £2,551 were reimbursed or paid directly to 7 Trustees (2020 - £1,151 to 6 Trustees).

14. TANGIBLE FIXED ASSETS

COST OR VALUATION
At 1 January 2021
Additions
Disposals
At 31 December 2021
DEPRECIATION
At 1 January 2021
Charge for the year
On disposals
At 31 December 2021
NET BOOK VALUE
At 31 December 2021
At 31 December 2020		 Freehold
property
£
247,517
-
-
247,517
89,224
3,343
-
92,567
154,950
158,293		 Motor
vehicles
£
9,430
-
-
9,430
9,221
52
-
9,273
157
209		 Fixtures and
fittings
£
108,669
6,149
(760)
114,058
86,318
6,356
(608)
92,066
21,992
22,351		 Total
£
365,616
6,149
(760
371,005
184,763
9,751
(608
193,906
177,099
180,853

Page 31

NATIONAL SHEEP ASSOCIATION (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

15. INVESTMENT PROPERTY

VALUATION
At 1 January 2021
At 31 December 2021		 Freehold
investment
property
£
350,000
350,000

The fair value of the investment property brought forward had been arrived at on the basis of a valuation carried out on 25 June 2015 by Charles Knowles, a RICS registered firm, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. Each year the charity reviews this valuation, to determine whether they still considered this to be accurate at the year end and from a review of similar property prices in the area. In 2018 there was a £30k increase in the directors' opinion which was uplifted in the valuation. A revaluation is planned for the 2022 financial year, however the directors believe that there is no significant movement in the valuation for the year ended 31 December 2021.

16. FIXED ASSET INVESTMENTS

COST OR VALUATION
At 1 January 2021
Additions
Disposals
Revaluations
AT 31 DECEMBER 2021
NET BOOK VALUE
AT 31 DECEMBER 2021
AT 31 DECEMBER 2020
STOCKS
Goods for resale		 Listed
investments
£
613,168
183,441
(183,444)
53,150
666,315
666,315
613,168		 Unlisted
investments
£
266,210
-
(10,000)
37,002
293,212
293,212
266,210
2021
£
3,048		 Total
£
879,378
183,441
(193,444)
90,152
959,527
959,527
879,378
2020
£
3,147

17. STOCKS

Page 32

NATIONAL SHEEP ASSOCIATION (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

18. DEBTORS

DUE WITHIN ONE YEAR
Trade debtors
Other debtors
Prepayments and accrued income
Tax recoverable
19.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
20.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Bank loans
Included within the above are amounts falling due as follows:
BETWEEN TWO AND FIVE YEARS
Bank loans
OVER FIVE YEARS
Bank loans		 2021
£
44,837
20,700
17,608
-
83,145
2021
£
36,526
8,910
17,577
250,024
313,037
2021
£
-
-
-		 2020
£
47,448
20,375
15,862
3,332
87,017
2020
£
64,596
7,414
26,807
238,822
337,639
2020
£
50,000
30,000
20,000

Page 33

NATIONAL SHEEP ASSOCIATION (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

21. STATEMENT OF FUNDS

STATEMENT OF FUNDS - CURRENT YEAR

UNRESTRICTED
FUNDS
DESIGNATED FUNDS
Central Region
Cymru Region
Eastern Region
Marches Region
Northern Region
Northern Ireland
Region
Scottish Region
South East Region
South West Region
South West Ram
Sales
Wales & Border Ram
Sales
GENERAL FUNDS
General Funds
TOTAL
UNRESTRICTED
FUNDS		 Balance at 1
January
2021
£
19,523
239,478
35,050
10,425
74,095
41,369
483
-
16,222
74,347
170,895
681,887
Balance at 1
January
2021
£
1,014,903
1,696,790		 Income
£
2,359
5,611
-
1,539
1,575
-
-
5,000
30
5,343
117,064
138,521
Income
£
627,989
766,510		 Expenditure
£
(4,066)
(12,003)
(5,937)
(3,628)
(18,268)
(9,447)
(18,131)
(2,597)
(1,830)
(3,736)
(129,323)
(208,966)
Expenditure
£
(576,716)
(785,682)		 Transfers
in/out
£
530
(30,110)
-
5,250
(1,630)
10,735
24,630
295
1,900
(5,115)
(18,230)
(11,745)
Transfers
in/out
£
7,354
(4,391)		 Gains/
(Losses)
£
-
21,435
-
-
-
-
-
-
-
5,890
15,567
42,892
Gains/
(Losses)
£
47,260
90,152		 Balance at
31
December
2021
£
18,346
224,411
29,113
13,586
55,772
42,657
6,982
2,698
16,322
76,729
155,973
642,589
Balance at
31
December
2021
£
1,120,790
1,763,379

Page 34

NATIONAL SHEEP ASSOCIATION (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

21. STATEMENT OF FUNDS (CONTINUED)

Balance at 1
January
2021
£
RESTRICTED FUNDS
British Heritage Sheep
7,876
Echinococcus Parasite
in Farm Dogs
899
Lameness Study
1,219
DBEIS
7,663
iSage
988
RoSA
-
RDPE
-
Erasmus
-
Welsh Government
Grant
-
Job Retention Scheme
-
18,645
TOTAL OF FUNDS
1,715,435		 Income
£
Expenditure
£

1,000
(400)
-
-
-
-
-
-
-
-
1,354
(3,818)
20,400
(40,470)
21,607
(1,521)
10,000
-
7,259
(7,259)
61,620
(53,468)
828,130
(839,150)		 Transfers
in/out
£
(7,374)
(899)
(1,219)
(7,663)
(988)
2,464
20,070
-
-
-
4,391
-		 Gains/
(Losses)
£
-
-
-
-
-
-
-
-
-
-
-
90,152		 Balance at
31
December
2021
£
1,102
-
-
-
-
-
-
20,086
10,000
-
31,188
1,794,567

Page 35

NATIONAL SHEEP ASSOCIATION (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

21. STATEMENT OF FUNDS (CONTINUED)

British Heritage Sheep Project

This project was grant funded by "The Prince's Countryside Fund" and supports a feasibility study to address the key threats to our native sheep breeds, by helping develop a diversified sheepmeat market from the single "Standard Lamb", adding value for farmer-based outlets, and linking sheepmeat, landscape and culture.

iSAGE

The project began in March 2016 and ran for 4 years. The project aimed to "improve the overall sustainability and innovative capicity of the sheep and goat sector in Europe by:

The idea is to involve as many stakeholders in the supply chain as possible, from the farmers to the processors, retailers and consumers.

One of the intended outcomes of the project is is the public goods (PG) tool for assesing sustainability on farms. Using existing information covering environmental, economic and social factors, the results should should give immediate feedback to the farmer on areas where performance is currently good and areas where further development is needed.

Investigations into the Distributions of Echinococcus Parasite in Farm Dogs

Echinococcus is a disease hosted by tapeworms in dogs, sheep and cattle and is a serious danger to humans who come into conact with it via grass/soil/droppings. NSA agreed to support work done by Liverpool University to better understand the prevalence of the disease by engaging with our members and surveying them. This work is core to the NSAs charitable objectives relating to promoting health in sheep.

Lameness Study

Lameness in sheep is a serious condition that affects the welfare and productivity capability of flocks. NSA was asked by Warwick University to support its work in identifying the prevalene of lameness conditions, attitudes to it being a serious problem, and the various ways that farmers aim to deal with it. This work has contributed to an increase in farmer awareness of the impact of lameness in sheep flocks and has also contributed to a signidicant change in attitudes to the problem. This work has contributed significantly to industry ambitions to reduce lameness in the national flock and is in line with the NSAs charitable objectives to promote health in sheep.

DBEIS Grant

In preparation for a potential UK departure from the eU at the end of October 2019 the UK Governments's Department for Business, Energy and Industrial Strategy invited applications for grant funding from industry bodies in order to prepare businesses for a 'no-deal' exit from the EU. NSA were successful in applying for funding of £27,700 which allowed us to produce a Brexit Toolkit. The toolkit consisted of written leaflets and case studies, fuller case studies available on the NSA web site, and pod casts from experts and practitioners who had experience of doing some of the things recommended in the material produced.

RoSA (Register of Sheep Advisers)

The aim of RoSA is to provide UK sheep farmers with a network of progressive advisers who can support them to develop sustainable farming systems which meet the highest standards of animal welfare and environmental protection. RoSA is seen as a voluntary way for the industry to demonstrate a high standard in the proficiency of all those providing advice to sheep farmers and to raise those standards in line with stakeholder expectations.

RoSA is being run in conjunction with BASIS. Both NSA and BASIS hold charitable status and are aligned in their objects in advancing education and standards in agricultural industries for the purposes of science and for public benefit. NSA is the industry leading expert within the sheep industry and BASIS is

Page 36

NATIONAL SHEEP ASSOCIATION (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

21. STATEMENT OF FUNDS (CONTINUED)

the foremost leading provider of training and professional development with proven capability to successfully administer continuing professional development (CPD) registers.

E-Organic Erasmus Project

NSA is the sole UK partner in an EU-funded Turkish-led research project called E-Organic Erasmus, running from early 2021 to the end of 2022. The project will collate information about organic livestock production systems (including but not limited to sheep) from across Europe into a free-to-access online resource. It will also allow nominated individuals from the participating countries (Italy, Spain, Turkey and the UK) to visit each other on study trips.

RDPE Countryside Productivity Scheme Project to Tackle Sheep Scab

I n January 2021, funding was awarded by Defra through the European Agricultural Fund for Rural Development for a project designed to demonstrate the effectiveness of a community-led approach to improve the control of sheep scab. The project focuses on three hotspot areas in England, where scab is highly prevalent: The South West (coordinated by the National Sheep Association); The Midlands (coordinated by ADAS) and The North West (coordinated by the Cumbrian Farmers Network). Within each of the three hotspots, there are a number of ‘clusters’ of farms that either share common boundaries or use the same common grazing, with the aim within each cluster being to foster cooperation in the control of scab. Running over two years, the project offers a great opportunity for farmers to work together, with their local vets and the project coordinators, to stamp out this costly disease, which is of high welfare concern. A full complement of 300 participating farmers have signed up to a unique combination of on-farm advice, best practice training and free blood testing using the sheep scab ELISA test developed by Moredun and available through Biobest Laboratories Ltd. This includes the costs of visits by their local vet to allow two sets of blood samples for ELISA testing, plus a face-to-face advisory visit by the vet for each farm to discuss scab control and biosecurity.

Welsh Government grant

Cymru/Wales Region have been successful in securing a grant from the Wales Cultural Recovery Fund which was set up to help protect sustainable businesses and organisations and as many jobs in the culture sector as possible in order to ensure the sector survives the Covid-19 crisis and remains viable and sustainable in 2021 and beyond. The funding was intended to cover the loss of income from the cancelled Welsh Sheep Event.

Transfers out of restricted

In previous years there was an under allocation of staff costs against restricted projects, this has been corrected in the current financial year to reflect the full spend of the restircted fund.

Page 37

NATIONAL SHEEP ASSOCIATION (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

21. STATEMENT OF FUNDS (CONTINUED) STATEMENT OF FUNDS - PRIOR YEAR

UNRESTRICTED
FUNDS
DESIGNATED
FUNDS
Central Region
Cymru Region
Eastern Region
Marches Region
Northern Region
Northern Ireland
Region
Scottish Region
South East Region
South West Region
South West Ram
Sales
Wales & Border Ram
Sales
GENERAL FUNDS
General Funds - all
funds
TOTAL
UNRESTRICTED
FUNDS		 Balance at
1 January
2020
£
23,578
230,189
33,091
14,840
83,680
46,256
19,250
321
23,911
76,307
182,756
734,179
Balance at
1 January
2020
£
1,036,918
1,771,097		 Income
£
-
13,779
12,644
-
62
279
2,817
1,437
37
2,737
13,205
46,997
Income
£
600,645
647,642		 Expenditure
£
(2,255)
(11,352)
(8,885)
(3,365)
(7,847)
(9,366)
(19,784)
(1,758)
(5,926)
(2,238)
(32,096)
(104,872)
Expenditure
£
(612,911)
(717,783)		 Transfers
in/out
£
(1,800)
(1,800)
(1,800)
(1,050)
(1,800)
4,200
(1,800)
-
(1,800)
(1,800)
(500)
(9,950)
Transfers
in/out
£
9,950
-		 Gains/
(Losses)
£
-
8,662
-
-
-
-
-
-
-
(659)
7,530
15,533
Gains/
(Losses)
£
(19,699)
(4,166)		 Balance at
31
December
2020
£
19,523
239,478
35,050
10,425
74,095
41,369
483
-
16,222
74,347
170,895
681,887
Balance at
31
December
2020
£
1,014,903
1,696,790

Page 38

NATIONAL SHEEP ASSOCIATION (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

21. STATEMENT OF FUNDS (CONTINUED)

Income
£
Expenditure
£
Transfers
in/out
£
1,000
(1,949)
-
-
-
-
-
-
-
-
-
-
3,016
(2,028)
-
12,753
(12,753)
-
16,769
(16,730)
-
664,411
(734,513)
-
YEAR
Income
£
Expenditure
£
Transfers
in/out
£
138,521
(208,966)
(11,745)
627,989
(576,716)
7,354
61,620
(53,468)
4,391
828,130
(839,150)
-		 Gains/
(Losses)
£
-
-
-
-
-
-
-
(4,166)
Gains/
(Losses)
£
42,892
47,260
-
90,152		 Balance at
31
December
2020
£
7,876
899
1,219
7,663
988
-
18,645
1,715,435
YEAR
Income
£
138,521
627,989
61,620
828,130		 Balance at
31
December
2021
£
642,589
1,120,790
31,188
SUMMARY OF FUNDS - CURRENT
Designated
funds
General funds
Restricted funds		 Balance at 1
January
2021
£
681,887
1,014,903
18,645
1,715,435
1,794,567

22. SUMMARY OF FUNDS SUMMARY OF FUNDS - CURRENT YEAR

Page 39

NATIONAL SHEEP ASSOCIATION IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 22. SUMMARY OF FUNDS ICONTINUEDI SUMMARY OF FUNDS- PRIOR YEAR Balance at 31 DeTrmber 2020 Balance at 1 January 2020 Transfers inlout Gainsl (Losses) Income Expenditure Designated funds General funds 734,179 1,036,918 18,606 46,997 600,645 16,769 1104,8721 1612,9111 116,7301 19,9501 9,950 15,533 119,6991 681,887 1,014,903 18,645 Reslricled funds 1,789,703 664,411 1734,5131 14,1661 1,715,435 23. ANALYSIS OF NET ASSETS BETWEEN FUNDS ANALYSIS OF NET ASSETS BETWEEN FUNDS- CURRENT YEAR Unrestrieted Restricted funds funds 2021 2021 Total funds 2021 Tangible fixed assets Fixed asset investments 177,099 959,527 350,000 575,678 1298,9251 177,099 959,527 350,000 45,300 620,978 114,1121 {313,0371 Investment property Current assets Creditors due within one year TOTAL 1,763,379 31,188 1.794,567 Page 40

NATIONAL SHEEP ASSOCIATION IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 23. ANALYSIS OF NET ASSETS BETWEEN FUNDS ICONTINUEDI ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR Unrestricted funds 2020 Reslricled funds 2020 Total funds 2020 Tangible fixed assets Fixed asset investments Investment propety Current assets 180,853 879,378 350,000 653,463 1316,9041 150,0001 180,853 879,378 350,000 692,843 1337,6391 150,0001 39,380 120,7351 Creditors due within one year Creditors due in more than one year TOTAL 1,696,790 18,645 1,715,435 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES 24. 2021 2020 Nel incomelexpendilure for the year las per Statement of Financial Acliviliesl 79.132 174,2681 ADJUSTMENTS FOR: Depreciation charges Depreciation on disposals Dividends, interests and rents from investments Decrease in stocks 9.751 1608} 48,210 99 9,593 44,714 124 Decrease in debtors Idecreaselllncrease in creditors 3.875 124.605} 28,531 92,344 NET CASH PROVIDED BY OPERATING ACTIVITIES 115,854 101,038 25. ANALYSIS OF CASH AND CASH EQUIVALENTS 2021 2020 Cash in hand 534.785 602,679 TOTAL CASH AND CASH EQUIVALENTS 534,785 602,879 Page 41

NATIONAL SHEEP ASSOCIATION IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 26. ANALYSIS OF CHANGES IN NET DEBT At1 January 2021 Cash flows At31 December 2021 Cash at bank and in hand 602,679 50,0001 167,894) 50,000 534,785 Debt due after 1 year 27. PENSION COMMITMENTS The Charitsble Company makes conlribulions, as part of an employee's conracl of employment, which are payable to defined contribution schemes chosen by the employer. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group lo the fund and amounted to £24,952 12020.. £27,746>. Contributions lotsling £Nil 12020.. £2,860) were payable to the fund al the Balance Sheet date and are included in creditors. 28. OPERATING LEASE COMMITMENTS At 31 De￿mber 2021 the Company had commitments lo make future minimum lease payments under non-cancellable operating leases as follows.. 2021 2020 Not later than 1 year Later than 1 year and not later than 5 years 4.023 837 6,399 4,860 7,515 29. RELATED PARTY TRANSACTIONS During the year £18,52712020'. £35,765) was paid to companies with directors in common control. At the year end £9,66912020'. £14,688) was due lo these companies. During the year £3,703 {2020'. £Nill was received by companies with directors in common control. Al the year end £Nil12020.' £Nill was due from these companies. During the year salarys of £20,373 12020.. £17,485) were paid to direct family members of trustees employed be the charity., During the year payments of £Nil12020.' £10,2001 were made lo a trustee for consultancy services. The above transactions represent payments made under nomial market conditions for goods, services and related expenses. Page 42