2023-12-31-accounts - The British Limousin Cattle Society Limited

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REGISTERED COMPANY NUMBER: 0989511 (England and Wales) REGISTERED CHARITY NUMBER: 262966

REPORT OF THE TRUSTEES AND AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

BRITISH LIMOUSIN CATTLE SOCIETY LIMITED (A COMPANY LIMITED BY GUARANTEE)

TC Group Limited Statutory Auditors Celixir House Stratford Business and Technology Park Stratford-upon-Avon Warwickshire CV37 7GZ

BRITISH LIMOUSIN CATTLE SOCIETY LIMITED REGISTERED COMPANY NUMBER: 00989511 (England and Wales) CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 A COMPANY LIMITED BY GUARANTEE

	Page
Report of the Trustees	1 to 9
Chairman’s Report	10 to 10
Treasurer’s report	11 to 12
Report of the Independent Auditors	13 to 15
Consolidated Statement of Financial Activities	16 to 16
Consolidated Balance Sheet	17 to 17
Charity Balance sheet	18 to 18
Consolidated Cash Flow Statement	19 to 19
Notes to the Consolidated Cash Flow Statement	20 to 20
Notes to the Consolidated Financial Statements	21 to 34
Detailed Statement of Financial Activities	35 to 37

BRITISH LIMOUSIN CATTLE SOCIETY LIMITED REGISTERED COMPANY NUMBER: 00989511 (England and Wales) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 A COMPANY LIMITED BY GUARANTEE

The trustees present their annual report and the audited financial statements of the year ended 31[st] December 2023.

Reference and administrative details

Charity number 262966 Company number 00989511 Principal address Concorde House & registered office 24 Warwick New Road Leamington Spa CV32 5JG

Directors and trustees

The directors of the company who served during the year ended 31[st] December 2023 are listed as follows:

Martin Irvine (re-elected 21/09/23) Member for Scotland

Andrew Clark National Member Chris Eddy** Member for South West Neil Blenkhorn (resigned 21/09/23) National Member William Ferguson (resigned 21/09/23) Member for South East

Will Forrester National Member, Executive Member

Guy Green ** Member for East Midlands

Dyfan James

Member for S Wales and Mid West, Executive Member, Vice Chairman

Matthew Jordon ** National Member William Lawson (resigned 21/09/23) Member for Scotland

Dr Cahir McAuley (resigned 21/06/23) Northern Ireland

Alan Myerscough (re-elected 21/09/23) Member for North West

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BRITISH LIMOUSIN CATTLE SOCIETY LIMITED REGISTERED COMPANY NUMBER: 00989511 (England and Wales) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 A COMPANY LIMITED BY GUARANTEE

Directors and trustees (Continued…)

Karl Suddes** Member for North East, Executive Member and Honorary Treasurer

Glyn Vaughan Member for NW Midlands & N Wales Jonathan Watson (re-elected 21/09/2023) National Member, Executive Member, Chairman Brian McAuley** (appointed 21/09/23) Northern Ireland James Gammie (appointed 21/09/23) Member for Scotland Keith Redpath (appointed 21/09/23) National Member Jonathan Stacey (appointed 14/12/23) Member for South East

** Retires at 2024 AGM and is eligible for re-election

Staff and organisational structure

As at 31[st] December 2023 the Society employed the full-time equivalent of 7 staff: Alison Glasgow, Technical Manager Karren Vince DNA Administrator Alice Swift, CEO

CEO appointed staff 2023:

Clara Hofstetter, Herd Book and Sales Administrator, appointed 27/03/23 Sue Stenner, Limousin Brand Integrity Manager, appointed 03/04/23 Laura Barber, Limousin Commercial Manager, appointed 17/05/23 Ruby Kanwar, Accounts Manager, appointed 05/06/23

Merryn Philp, Herd Book & Young Limousin Administrator, Harper Adams University College annual placement student, appointed 26/06/23

Natalie Abbott, Herd Book Manager (employment ended 19/05/23) Martha Sahota, Herdbook Administrator (resigned 31/03/23)) Lorraine Trinder, Herdbook Administrator (resigned 11/02/23) Jen Tyson, Herdbook Administrator (resigned 17/03/23)

Contracted Accounts Officer, Stephanie Tompkins also in position in 2023 (service ended 10/03/23) Contracted Accounts Office, Gareth Bown also in position in 2023 (appointed 03/23 service ended 09/08/23)

The CEO is responsible to the Council of Management of the British Limousin Cattle Society Limited and their role is to work closely with the Council to protect and promote the Limousin Brand through the Society’s Bye Laws and initiatives, whilst driving member engagement.

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BRITISH LIMOUSIN CATTLE SOCIETY LIMITED REGISTERED COMPANY NUMBER: 00989511 (England and Wales) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 A COMPANY LIMITED BY GUARANTEE

Reference and administrative details

Auditors

TC Group Limited Celixir House Stratford Business & Technology Park Banbury Road Stratford upon Avon Warwickshire CV37 7GZ

Solicitors

Wright Hassall LLP Olympus Avenue Leamington Spa Warwickshire CV34 6BF

Bankers

HSBC 126 Parade Leamington Spa CV32 4AJ

Investment advisors

Investec Wealth & Management Quartermile One 15 Lauriston Place Edinburgh EH3 9EN

Insurance brokers

Irvine Commercial Lower Farm Barns Brandon Lane Coventry CV3 3GW

Structure, Governance and Management

Governing document

The company is limited by guarantee and a registered charity governed by its Memorandum and Articles of Association dated 18[th] February 1993 and amended by special resolution in 1996, 2005, 2006 and 2018

Appointment of trustees

The business of the Society is managed by the board of trustees (Council of Management) which comprises 15 members. The appointment of trustees is consistent with the provisions of the amended Memorandum & Articles of Association of 2006 and the Council Bye Laws. All trustees are prepared to take a full and active part in the operation of the charity and have responsibilities first and foremost to the charity, secondly the staff and thirdly, the membership. This being a legal obligation.

Extracts taken from the Memorandum & Articles of Association paragraphs 50-51

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BRITISH LIMOUSIN CATTLE SOCIETY LIMITED REGISTERED COMPANY NUMBER: 00989511 (England and Wales) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 A COMPANY LIMITED BY GUARANTEE

Structure, Governance and Management - Continued

Members elected to the Council shall serve a three-year term of office commencing on the date of the General Meeting of the Society at which the announcement of their election to membership of the Council is made. In the event that the office of any member of the Council is vacated under Article 49 (or otherwise) before completion of his three-year term of office, a By-Election shall be held and the new member of the Council so elected shall complete the unexpired period of the three year term of the member of Council who has vacated his office and shall then retire. A retiring member shall be eligible for re-election.
No person other than a retiring member of the Council shall, unless recommended by the Council for election, be eligible for election to membership of the Council unless that member has in writing, been duly proposed and seconded by full members of the Society and has undertaken willingness to serve if elected. Nominations must be received not later than 42 days prior to the General Meeting and ballot papers (if there are more candidates than vacancies) will be posted to all members entitled to vote and must be received by the scrutineer appointed by the Council for the purposes of such election not less than 7 days prior to the General Meeting at which the result will be announced.

Trustee induction and training

Prior to attending their first Council Meeting, new trustees are provided with the following documents:

Memorandum and Articles of Association of the British Limousin Cattle Society

British Limousin Cattle Society Ltd Council of Management Rules, Conventions and Standing Orders
British Limousin Cattle Society Byelaws
Roles and Responsibilities of British Limousin Cattle Society Office Bearers and Meeting Procedures
CC3 Charity Commission for England and Wales Responsibilities of Charity Trustees
Minutes of previous Council of Management meeting
Expenses claim form
Conflict of Interest Policy & Declaration of Interests

Organisation

The Board of Trustees administers the charity and meets quarterly. The Executive Committee has authority to make urgent decisions in the absence of an imminent Council Meeting, within Council policy. The Executive Committee comprises 5 members As at 31[st] December 2023, they were:

Jonathan Watson, Chairman
Dyfan James
Karl Suddes, Honorary Treasurer
Chris Eddy
Will Forrester

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BRITISH LIMOUSIN CATTLE SOCIETY LIMITED REGISTERED COMPANY NUMBER: 00989511 (England and Wales) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 A COMPANY LIMITED BY GUARANTEE

Structure, Governance and Management - Continued

Review and Complaints Procedure

The terms of reference of the Review and Complaints procedure are laid out in Byelaws 16-25 of the British Limousin Cattle Society Byelaws. A copy can be found on the Limousin society website www.limousin.co.uk , under the ‘Society’ menu tab, or a printed copy can be made available on request to the Society office.

Members of the Review Committee on 31[st] December 2023 were: Will Forrester (chairman) Michael Cursiter John Elliot Dyfan James Glynn Vaughan

Current members of the Appeal Panel are: Vince Corbett Michael Diamond John Mason Chris Pennie Mary Tuckett

Related parties

The Society co-operates with the following parties in pursuit of its charitable objectives:

National Beef Association
AHDB
SRUC
European Limousin Federation
International Limousin Council
CHeCS Animal Health Group

Objectives and Activities

Principal objects

The objects for which the Society is established are:

The promotion of agriculture for the public benefit by encouraging, promoting and improving the breeding of Limousin cattle in the United Kingdom of Great Britain and Northern Ireland, or elsewhere, and with a view thereto and if in so far as may be thought fit, to purchase, import, breed, hire or otherwise acquire and hold, recall, let out on hire or otherwise deal in Limousin cattle whether of British or foreign origin.

Aims

The main aspects of the Society’s work are:

the maintenance of an accurate herdbook and the provision of herdbook services to members
the management of technical and breed improvement programmes
the funding of educational programmes through agricultural colleges national genetic evaluation of the breed and the provision of performance recording to all members
the promotion of Limousin cattle, beef, semen and embryos to all potential markets

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BRITISH LIMOUSIN CATTLE SOCIETY LIMITED REGISTERED COMPANY NUMBER: 00989511 (England and Wales) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 A COMPANY LIMITED BY GUARANTEE

Structure, Governance and Management - Continued

Objectives for the year

The main objectives for the year 2023 were:

the provision of quality cattle that surpass the level of expectation and profitability anticipated by the commercial customer base
to pursue the Society’s breed improvement objectives
to develop the Society’s portfolio of technical and marketing projects
the further development of Taurus, the Society’s on-line herdbook database
the promotion of BLCS products and services at industry events within the UK
representation of members’ interests at all relevant industry forums

Limousin Solutions Limited

Objectives:

To assist with the trade of the subsidiary companies and review potential opportunities in the future.

Semenstore Limited

Objectives:

To provide a service of the provision of semen straws and earn commission thereon.

Taurus Agridirect Limited

Objectives:

To assist with the trade of the subsidiary companies and review potential opportunities in the future.

Strategies

The Council of Management formulates an agreed plan of activity each year with a defined structure and budget. The necessary finance and resource is allocated to ensure that planned activities are fulfilled. Activities and budgets are reviewed on an ongoing basis. The Society adopts a collaborative and partnership approach with all areas of industry as required to meet and to further its objectives.

Achievements and performance

Pedigree registrations reached 14,114 with membership at 2,196 members

Limousin Solutions Limited

Continue to look for future opportunities

Semenstore Limited

Continue to build and strengthen the trading activities

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BRITISH LIMOUSIN CATTLE SOCIETY LIMITED REGISTERED COMPANY NUMBER: 00989511 (England and Wales) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 A COMPANY LIMITED BY GUARANTEE

Plans for the future

To develop and launch ‘New Taurus’ our online herdbook database onto a modern IT architecture platform
To create and develop a purposeful narrative for the Limousin brand to promote the breeds green credentials ensuring relevance to todays consumer and market place.
To explore marketing opportunities for Limousins Green Credentials, that include benefits to both the commercial and pedigree membership.
To represent members interests at beef and food industry level, to ensure a fair and accurate representation of the breed
To promote the breed at industry events throughout the UK through collaboration with the Regional Limousin Clubs
Stabilise and increase membership of the Society
Stabilise and increase pedigree calf registrations within the herdbook in line with Bye Laws.
To investigate and develop other income streams to ensure future financial stability

Financial review

The accounts have been prepared in accordance with the Charities SORP (FRS102) Accounting and Reporting by Charities: Statement of Recommended Practice applicable to Charities preparing their accounts in accordance with the Financial Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019), Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and the Companies Act 2006.

Balance Sheet

The group's total funds at the end of the period was £3,086,047 (2022 - £2,922,962). The Trustees have a strategic and operational plan in place to ensure stability and growth.

Statements of financial activities

During the year income has increased from £1,082,521 to £1,122,145. Expenses have decreased from £1,224,656 to £1,055,541.

Risk management

Review process

The Council of Management actively reviews the major risks which the charity faces on a regular basis and believes that maintaining reserves at current levels, combined with an annual review of the controls over key financial systems, will provide sufficient resources in the event of adverse conditions. The Council of Management has also examined other operational and business risks faced by the charity and confirms that it has established systems to mitigate the significant risks.

Risks

Whilst it is unlikely that the Society’s income would cease completely over this two-year period, it would be prudent to guard against crises which could lead to a serious dilution of income and an increase in the Society’s expenditure in order to assist its members through any period of uncertainty.

Reserves policy and performance

It is the Council of Management’s opinion that a level of reserves is required to allow the Society to continue for a twoyear period, taking account of the uncertainties in the agricultural community, not only of a commercial nature but also of the impact of disease etc.

The Society’s unrestricted outgoings in 2023 were £1,055,541 with the Society’s unrestricted reserves at 31[st] December 2023 being £3,086,047 . Thus, current reserves should be adequate to support the continuation of the charity’s aims and services over a two-year period.

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BRITISH LIMOUSIN CATTLE SOCIETY LIMITED REGISTERED COMPANY NUMBER: 00989511 (England and Wales) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 A COMPANY LIMITED BY GUARANTEE

Subsidiary

The subsidiary shall pay to the holders of the ‘A’ shares known as registered charity 262966, called at the date of the incorporation of the company ‘British Limousin Society’ whether by gift aid, covenanted donations to the charity within the meaning of the Income and Corporation Taxes Act 1988 or otherwise, such sum as, after due provision for the financial requirements of any business which are for the time being carried on by the company, as shall be defined by the directors in General Meeting. This policy will be reviewed annually by the company, currently the company is building on its two areas of business being undertaken by its wholly owned subsidiaries and aims to strengthen the overall financial position.

Investment policy and performance

Investment policy

Under the memorandum and articles of association, the charity has the power to invest moneys of the Society not immediately required for its purposes in or upon such investments or securities as may be thought fit.

Investment objective

The British Limousin Cattle Society intends that the real value of the Society assets be maintained and enhanced within acceptable parameters over the long term by investment in a portfolio comprised of equities, fixed income stocks and cash.

Investment brief

In order to meet this objective the Council of Management has appointed Investec Wealth & Management (Investec) as the Society’s agent to manage a diversified portfolio of suitable investments on an advisory basis. It has selected a balanced investment objective with medium risk.

Investment review

During 2018 the Council of Management initiated a tender process for the Society’s investment portfolio and Investec were appointed as portfolio managers in place of Barclays Wealth. The transfer took place in October 2019. The proportions invested in equities, fixed income stocks and cash shall be reviewed with Investec in order to provide guidance on the ongoing suitability of that element of the investment policy. The Council of Management shall also keep under review the arrangements under which Investec acts as the Society’s agent.

Public benefit

The Trustees confirm that they have complied with their duty in Section 4 of the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit. The trustees ensure that this purpose is carried out for the public benefit by maintaining a high standard of Limousin Breed thus delivering a high-quality beef product for human consumption.

Trustees’ responsibilities

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

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the company and of the profit or loss of the charity for that period. In preparing those financial statements, the trustees are required to:

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP;
make judgements and estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the will continue in operation.

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BRITISH LIMOUSIN CATTLE SOCIETY LIMITED REGISTERED COMPANY NUMBER: 00989511 (England and Wales) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023 A COMPANY LIMITED BY GUARANTEE

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

Statement as to disclosure of information to auditors

In accordance with company law, as the company’s directors, we certify that:

So far as we are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company’s auditors are unaware.
Each trustee of the charitable company has taken all the steps that we ought to have taken in order to make the auditors aware of any relevant audit information and to establish that the charity’s auditors are aware of that information.

Auditors

The auditors, TC Group Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Small company exemptions

This report has been prepared in accordance with the special provisions of part 15 of the Companies Act 2006 relating to small entities.

By order of the board,

Dyfan James Dyfan James Chairman, British Limousin Cattle Society Dated: 16/09/2024

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BRITISH LIMOUSIN CATTLE SOCIETY LIMITED REGISTERED COMPANY NUMBER: 00989511 (England and Wales) REPORT OF THE CHAIRMAN FOR THE YEAR ENDED 31 DECEMBER 2023 A COMPANY LIMITED BY GUARANTEE

I would like to take this opportunity to thank Jonathan Watson, our previous chairman, for his hard work and his contribution to the Society over the last few years. The work of the Review Committee during this period should be commended, for its diligence has raised the level of integrity within the herd book. I also thank all retiring Council members for their hard work and wish all the new members well in being a part of Council.

During the year of 2023, some of our office staff members decided to move on with their careers elsewhere. I personally and on behalf of the membership would like to thank all very much for the years of hard work you have given the Society and wish all well for the future. For the current staff I commend you all for your continued hard work and I am sure it will be a pleasure working side-by-side with you in the future.

The Premier Society sales in 2023 reached new heights with 22 bulls crossing £10,000 in May at Carlisle and a 100% clearance for bulls in November at Brecon. It must also be noted that home sales for bulls are doing well with suckler farmers converting back to a Limousin bull. Again, year after year the Limousin breed is dominating the show circuit with many individual and group Interbreed champions. Limousin genetics also reached the top in commercial and fat stock shows during the year. I would like to take this opportunity in welcoming 89 new members in 2023 and wish them all the best in their journey within the Limousin breed.

Looking ahead, there is a great deal of work in hand to develop our EBV and genomic information. The intention is to create robust data sets that are verified, accurate and provide industry proof points of performance. Although the new Taurus launch has been put forward a few months, we are still looking forward to it coming online. Its scope and flexibility will significantly benefit staff and all members alike.

We have a great breed, great members and great staff to push the Limousin brand forward. The coming year will see delivery of genomic breeding values for Feed Efficiency, this resulting from DEFRA funded projects managed by AHDB and SRUC. This is going to be a game changer for the beef industry; Limousin continues to be at the forefront of technical development in pedigree beef and has over forty thousand genotyped animals that will present these new breeding values.

As a breed we have consistent high-quality shape, growth, killing out percentages, meat to bone ratio, meat tenderness, ideal fat cover and early slaughter age. The world and peoples’ mind sets are changing and these features define Limousin in these modern times as the Green Breed . A recent Kantar study showed that only 12% of consumers are interested in a named breed brand. The evidence increasingly suggests that low input, low emission beef will become more sought after than beef with a breed name. Increasing pressures on supply chains will not be able to continue to tolerate beef processing inefficiency. We are working hard to make sure that Limousin can fill these demands.

As breeders, we must prioritise our breeding program for easy-care cattle herds, where short gestation lengths, easy calving, maternal and production qualities are priorities. The ability of Limousin-bred animals to produce a quality prime calf at low-cost is paramount and is the foundation we build our future on. We have the cattle, the breeders and the technology to take this breed forward together. In unity there is strength.

Diolch yn fawr

Dyfan James Chairman Dated: 01 August 2024

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BRITISH LIMOUSIN CATTLE SOCIETY LIMITED REGISTERED COMPANY NUMBER: 00989511 (England and Wales) REPORT OF THE TREASURER FOR THE YEAR ENDED 31 DECEMBER 2023 A COMPANY LIMITED BY GUARANTEE

With the 50[th] celebrations a now distant memory, the 2023 accounts return to somewhat normality, but a busy year.

Sales commission has increased, showing the continued support and demand for the Limousin breed.

The increased income from the office space and conferencing facilities at Concorde House is a pleasing sight to see in the accounts. The building is finally giving an income back to the membership; long may this continue.

Operating costs have been scrutinised and reviewed leading to a saving where possible, which has helped profitability in this year’s accounts.

Income from the share portfolio remains constant and an increase in overall value put the Society funds back up after the fall of 2022.

A good operating profit and an increase in the value of the share portfolio gives BLCS a good profit for 2023.

Please see the following summary of the 2023 accounts.

Summary of the 2023 finances

At the end of the year BLCS funds stood at £3,072,207 (2022: £2,895,573)

Income

Total income for the year increased to £1,122,145 (2022: £1,082,521)

Investment income

Dividend income from the investment portfolio was up on 2022 to £44,792 (2022: £42,757)

Cattle Society income

Total Registration income increased to £492,222 (2022: £475,119) Membership income decreased £131,130 (2022: £135,573) Rent received from Concorde House tenants increased to £56,484 (2022: £22,072), plus meeting room hire generating roughly £1,000 per month

Sales commission income increased to £71,857 (2022: £64,051), very strong in 2023 with 3 successful breeders sales driving income.

Expenditure

Total expenditure for the year decreased to £1,055,541 (2022: £1,224,656)

Salaries increased to £397,575 (2022: £327,526) as we have a full team in place. Inspection fees decreased to £8,269 (2022: £12,970) Legal and professional fees decreased to £13,478 (2022: £50,010) Shows and events costs significantly decreased to £48,108 (2022: £204,490). The increase in 2022 was due to the 50[th] anniversary celebrations).

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BRITISH LIMOUSIN CATTLE SOCIETY LIMITED REGISTERED COMPANY NUMBER: 00989511 (England and Wales) REPORT OF THE TREASURER FOR THE YEAR ENDED 31 DECEMBER 2023 A COMPANY LIMITED BY GUARANTEE

TREASURER’S REPORT continued ……

Profit for the year on trading activities totalled £66,604 (2022: £142,135). An increase in the market value of the share portfolio translated into an overall profit for the Society of £163,085 (2022: £335,640).

I would like to thank Stephanie Tompkins for her time and dedication to BLCS and wish her the best in the future, and welcome Ruby Kanwar as Accounts Manager. I hope she enjoys working at British Limousin.

Finally, I would like to take the opportunity to thank the team within the Society for their dedication and hard work throughout the year.

…………………………………………..

Karl Suddes Honorary Treasurer Dated: 01 August 2024

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BRITISH LIMOUSIN CATTLE SOCIETY LIMITED REGISTERED COMPANY NUMBER: 00989511 (England and Wales) REPORT OF THE INDEPENDENT AUDITORS FOR THE YEAR ENDED 31 DECEMBER 2023 A COMPANY LIMITED BY GUARANTEE

Opinion

We have audited the financial statements of British Limousin Cattle Society Limited (the ‘charitable company’) for the year ended 31 December 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the charitable company’s affairs as at 31 December 2023 and of its income 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 requirements of 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 Auditors’ responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

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

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

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

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 Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Report of the Trustees has been prepared in accordance with applicable legal requirements.

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BRITISH LIMOUSIN CATTLE SOCIETY LIMITED REGISTERED COMPANY NUMBER: 00989511 (England and Wales) REPORT OF THE INDEPENDENT AUDITORS FOR THE YEAR ENDED 31 DECEMBER 2023 A COMPANY LIMITED BY GUARANTEE

Matters on which we are required to report by exception

In the 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 Report of the Trustees.

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 or returns adequate for our audit have not been received from branches not visited by us; or
the 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; or
the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees.

Responsibilities of trustees

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

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

Auditor’s responsibilities for the audit of the risks identified, or that otherwise ial statements

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

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a h igh 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 decisions of users taken on the basis of these financial statements.

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

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

The objectives of our audit, in respect to fraud, are:

to identify and assess the risks of material misstatement of the financial statements due to fraud;
to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and
to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

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BRITISH LIMOUSIN CATTLE SOCIETY LIMITED REGISTERED COMPANY NUMBER: 00989511 (England and Wales) REPORT OF THE INDEPENDENT AUDITORS FOR THE YEAR ENDED 31 DECEMBER 2023 A COMPANY LIMITED BY GUARANTEE

Our approach was as follows:

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations;
We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK;
We considered the nature of the industry, the control environment and business performance, including the key drivers for management’s remuneration;
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;
We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included; testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect noncompliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidanceforauditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspc.

This description forms part of our auditor’s report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with section 391 of the Companies Act 2014. Our audit work has been undertaken so that we might state to the 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 company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Mark Bullock

Mark Bullock FCA (Senior Statutory Auditor) For and on behalf of TC Group Celixir House Stratford Business & Technology Park Stratford upon Avon CV37 7GZ

Date : ………………………………………………… 16/09/2024

Page 15

BRITISH LIMOUSIN CATTLE SOCIETY LIMITED REGISTERED COMPANY NUMBER: 00989511 (England and Wales) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2023 A COMPANY LIMITED BY GUARANTEE

Notes INCOME AND ENDOWMENTS FROM Donations and legacies 2 Charitable activities 5 Charitable activities Other trading activities 3 Investment income 4 Total EXPENDITURE ON Raising funds 6 Charitable activities 7 Charitable activities Total Net gains/(losses) on investments NET INCOME/(EXPENDITURE) RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD	Unrestricted fund £ 131,130 865,387 23,116 102,512 1,122,145 24,505 1,031,036 1,055,541 96,481 163,085 2,922,962 3,086,047	Restricted fund £ - - - - - - - - - - - -	2023 Total funds £ 131,130 865,387 23,116 102,512 1,122,145 24,505 1,031,036 1,055,541 96,481 163,085 2,922,962 3,086,047	2022 Total funds £ 135,573 844,349 37,299 65,300 1,082,521 32,459 1,192,197 1,224,656 (193,505) (335,640) 3,258,602 2,922,962

The notes form part of these financial statements

Page 16

BRITISH LIMOUSIN CATTLE SOCIETY LIMITED REGISTERED COMPANY NUMBER: 00989511 (England and Wales) CONSOLIDATED BALANCE SHEET FOR THE YEAR ENDED 31 DECEMBER 2023 A COMPANY LIMITED BY GUARANTEE

Notes FIXED ASSETS Intangible assets 13 Tangible assets 14 Investments 15 CURRENT ASSETS Stocks 16 Debtors 17 Cash at bank and in hand CREDITORS Amounts falling due within one year 18 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES NET ASSETS FUNDS 20 Unrestricted funds TOTAL FUNDS	Unrestricted fund £ 215,783 921,509 1,859,790 2,997,082 - 247,539 266,700 514,239 (425,274) 88,965 3,086,047 3,086,047	Restricted fund £ - - - - - - - - - - - -	2023 Total funds £ 215,783 921,509 1,859,790 2,997,082 - 247,539 266,700 514,239 (425,274) 88,965 3,086,047 3,086,047 3,086,047 3,086,047	2022 Total funds £ 123,693 944,281 1,719,105 2,787,079 2,739 245,026 336,719 584,484 (448,601) 135,883 2,922,962 2,922,962 2,922,962 2,922,962

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

16/09/2024 The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:

Dyfan James

...................................................................................... W D D James - Trustee

...................................................................................... K D Suddes - Trustee

The notes form part of these financial statements

Page 17

BRITISH LIMOUSIN CATTLE SOCIETY LIMITED REGISTERED COMPANY NUMBER: 00989511 (England and Wales) CHARITY BALANCE SHEET FOR THE YEAR ENDED 31 DECEMBER 2023 A COMPANY LIMITED BY GUARANTEE

Notes FIXED ASSETS Intangible assets 13A Tangible assets 14A Investments 15A CURRENT ASSETS Stocks 16A Debtors 17A Cash at bank and in hand CREDITORS Amounts falling due within one year 18A NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES NET ASSETS FUNDS Unrestricted funds TOTAL FUNDS	Unrestricted fund £ 215,783 916,558 1,885,291 3,017,632 - 324,251 128,994 453,245 (398,670) 54,575 3,072,207 3,072,207	Restricted fund £ - - - - - - - - - - - -	2023 Total funds £ 215,783 916,558 1,885,291 3,017,632 - 324,251 128,994 453,245 (398,670) 54,575 3,072,207 3,072,207 3,072,207 3,072,207	2022 Total funds £ 123,693 936,856 1,744,605 2,805,154 2,739 407,357 117,064 527,160 (436,741) 90,419 2,895,573 2,895,573 2,895,573 2,895,573

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

16/09/2024

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

Dyfan James

............................................................................ W D D James - Trustee

............................................................................ K D Suddes - Trustee

The notes form part of these financial statements

Page 18

BRITISH LIMOUSIN CATTLE SOCIETY LIMITED REGISTERED COMPANY NUMBER: 00989511 (England and Wales) CONSOLIDATED CASH FLOW STATEMENT 31 DECEMBER 2023

A COMPANY LIMITED BY GUARANTEE

Notes Cash flows from operating activities Cash generated from operations 1 Net cash (used in)/provided by operating activities Cash flows from investing activities Purchase of intangible fixed assets Purchase of tangible fixed assets Purchase of fixed asset investments Sale of tangible fixed assets Sale of fixed asset investments Interest received Dividends received Net cash (used in)/provided by investing activities 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	2023 £ 230,122 230,122 (104,957) (4,046) (533,135) - 295,969 1,236 44,792 (300,141) (70,019) 336,719 266,700	2022 £ (130,677) (130,677) (108,843) (6,273) (167,309) 22,001 161,975 471 42,757 (55,221) (185,898) 522,617 336,719

The notes form part of these financial statements

Page 19

BRITISH LIMOUSIN CATTLE SOCIETY LIMITED

REGISTERED COMPANY NUMBER: 00989511 (England and Wales) CONSOLIDATED CASH FLOW STATEMENT

31 DECEMBER 2023

A COMPANY LIMITED BY GUARANTEE

1. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

	OPERATING ACTIVITIES
			2023	2022
			£	£
	Net (expenditure)/income for the reporting period (as per the
	Statement of Financial Activities)		163,085	(335,640)
	Adjustments for:
	Depreciation charges		39,685	50,937
	Losses/(gain) on investments		96,481	193,505
	Profit on disposal of fixed assets		-	(4,463)
	Interest received		(1,236)	(471)
	Dividends received		(44,792)	(42,757)
	Decrease in stocks		2,739	21
	(Increase)/decrease in debtors		(2,513)	(8,036)
	Increase in creditors		(23,327)	16,227
	Net cash (used in)/provided by operations		230,122	(130,677)
2.	ANALYSIS OF CHANGES IN NET FUNDS
		At 1.1.23	Cash flow	At 31.12.23
		£	£	£
	Net cash
	Cash at bank and in hand	336,719	(70,019)	266,700
	Total	336,719	(70,019)	266,700

The notes form part of these financial statements

Page 20

BRITISH LIMOUSIN CATTLE SOCIETY LIMITED REGISTERED COMPANY NUMBER: 00989511 (England and Wales) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 A COMPANY LIMITED BY GUARANTEE

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS102, have been prepared in accordance with the Charities SORP (FRS102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' EFA, and the Companies Act 2006. The financial statements have been prepared under the historical cost convention with the exception of investments which are included at market value, as modified by the revaluation of certain assets.

The consolidated financial statements include the accounts of the parent undertaking, it's subsidiary undertakings and proportion of the associate on an equity accounting basis, made up to the year ended 31 December 2023. The results of the subsidiaries are included in the consolidated statement of financial activities from the date of their acquisition. No goodwill arose on consolidation.

In accordance with the concession granted under section 408 of the Companies Act 2006, no profit and loss account has been prepared for the holding company. Profits and losses dealt with in the accounts of the holding company are shown in note 12A.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. Memberships are included under donations when they are receivable. Registrations are included in charitable activities.

The income from shows is shown gross with associated costs included in charitable activities. Deferred income is recognised as income that relates to the next financial period.

Expenditure

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

Direct charitable expenditure includes all expenditure considered to be directly related to the furtherance of the Charity's objectives.

Other costs of generating funds include the charity's shop and miscellaneous costs.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include all audit fees and costs linked to the strategic management of the charity. Support costs include central functions which have been allocated to activities on the basis of the use of resources.

Allocation and apportionment of costs

Direct charitable expenditure includes all expenditure considered to be directly related to the furtherance of the Charity's objectives.

Other costs includes the Charity's shop and miscellaneous costs.

Support costs include central functions which have been allocated on the basis of the use of resources.

Intangible fixed asset amortisation

The Taurus database is being amortised over 10 years on a straight line basis.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property - 10% straight line basis and 2% straight line basis Fixtures and fittings - at varying rates on straight line basis

The notes form part of these financial statements

Page 21

BRITISH LIMOUSIN CATTLE SOCIETY LIMITED REGISTERED COMPANY NUMBER: 00989511 (England and Wales) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2023 A COMPANY LIMITED BY GUARANTEE

1. ACCOUNTING POLICIES - continued

Tangible fixed assets

Motor Vehicles - 25% reducing balance basis Computer equipment - 50% straight line basis and 25% straight line basis

Fixed assets in excess of £200 are capitalised and land is not depreciated as this is deemed to be its recoverable value.

Related party exemption

The charitable company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities have been eliminated on consolidation are not disclosed within the financial statements.

Stocks

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

Taxation

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

Group Undertakings

The following UK corporation tax arose on ordinary activities of Limousin Solutions Limited for the year 2023, £Nil (2022, £Nil), Semenstore Limited was £Nil (2022, £Nil) and Taurus Agridirect Limited was also £Nil (2022, £Nil).

Fund accounting

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

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

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

Investments

Listed investments have been professionally valued at 31st December 2021 and are included in the accounts at their fair value at that date. Realised and unrealised gains and losses on investments are dealt with in the statement of financial activities.

Unlisted investments have been valued at cost and reviewed for impairment.

Operating lease commitments

Rentals applicable to operating leases where substantially all of the benefits and risks ownership remain with the lessor are charged to income and expenditure as incurred.

Pension costs and other post-retirement benefits

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.

Grant income

Grant income received and receivable is recognised in the Statement of Financial Activities when all performance conditions have been met.

The notes form part of these financial statements

Page 22

BRITISH LIMOUSIN CATTLE SOCIETY LIMITED REGISTERED COMPANY NUMBER: 00989511 (England and Wales) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2023 A COMPANY LIMITED BY GUARANTEE

1. ACCOUNTING POLICIES - continued

Investments

The Charity owns 100% of the issued share capital of Limousin Solutions Limited, (incorporated in the UK) It has agreed to pay over any of its profits to British Limousin Cattle Society Limited under gift aid. Limousin Solutions Limited owns 100% of Semenstore Limited which earns commission on the sale of semen and 100% of Taurus Agridirect Limited which is currently dormant.

All companies have a 31st December 2023 year end and their results are consolidated with those of British Limousin Cattle Society Limited in accordance with the SORP.

2. DONATIONS AND LEGACIES

Annual memberships 3. OTHER TRADING ACTIVITIES Shop sales Miscellaneous Semen sales Remitted to suppliers Entry fees Packing and delivery 4. INVESTMENT INCOME Concorde house rent Interest and dividends	2023 £ 131,130 131,130 2023 £ 604 - 34,040 (33,149) 5,300 16,321 23,116 2023 £ 56,484 46,028 102,512	2022 £ 135,574 135,574 2022 £ 1,126 1,997 46,095 (33,310) 5,400 15,991 37,299 2022 £ 22,072 43,228 65,300

The notes form part of these financial statements

Page 23

BRITISH LIMOUSIN CATTLE SOCIETY LIMITED REGISTERED COMPANY NUMBER: 00989511 (England and Wales) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2023 A COMPANY LIMITED BY GUARANTEE

5. INCOME FROM CHARITABLE ACTIVITIES

Activity
Registration fees
Charitable activities
Registration refunds
Charitable activities
Import/export fees
Charitable activities
DNA testing
Charitable activities
Sale entries
Charitable activities
50thAnniversary
Charitable activities
Sales Commission
Charitable activities
Semen royalty (net)
Charitable activities
Sponsorship and advertising
Charitable activities
Limousin performance
recording
Charitable activities
RAISING FUNDS
Other trading activities
Shop/ promotional goods
Packing and delivery
Health certificates
Support costs
Investment management costs
Support costs
Aggregate amounts
CHARITABLE ACTIVITIES COSTS
Direct
Costs
£
Charitable activities
473,869

2023
2022
£
£
528,111
512,479
(35,889)
(37,360)
4,900
2,400
162,833
171,113
17,480
6,500
-
62,639
71,857
64,051
26,362
11,982
15,101
13,875
74,632
36,670
865,387
844,349
2023
2022
£
£
-
270
10,134
11,947
-
-
4,539
9,726
14,673
21,943
2023
2022
£
£
9,832
10,516
24,505
32,459
Support
costs (see
note 8)
Totals
£
£
557,167
1,031,036

6. RAISING FUNDS

7. CHARITABLE ACTIVITIES COSTS

The notes form part of these financial statements

Page 24

BRITISH LIMOUSIN CATTLE SOCIETY LIMITED REGISTERED COMPANY NUMBER: 00989511 (England and Wales) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2023 A COMPANY LIMITED BY GUARANTEE

8. SUPPORT COSTS

Other trading activities Investment management costs Charitable activities	Finance £ 662 7,986 6,931 15,579	Governance Other costs £ £ 3,877 - 1,846 - 456,414 93,822 462,137 93,822	Totals £ 4,539 9,832 557,167 571,538

9. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

Depreciation - owned assets Surplus on disposal of fixed assets Taurus database amortisation Fees payable for the audit of the charity’s financial statements	2023 £ 26,818 - 12,867 7,000	2022 £ 32,052 (4,463) 18,885 6,600

10. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 December 2023 nor for the year ended 31 December 2022.

Trustees' expenses

The company has reimbursed expenses incurred by trustees for travelling and council meeting expenses to the value of £18,456 (2022, £8,121) during the year. The number of trustees reimbursed was 12 (2022, 11).

11. STAFF COSTS

The aggregate payroll costs was as follows:

Wages and salaries Social security costs Pension costs		2023 £ 357,246 34,444 5,885 397,575	2022 £ 223,567 19,692 6,131 249,390

The average monthly number of employees during the year was as follows:

Breed secretary Herd book personnel Technical manager	2023 1 5 1 7	2022 1 5 1
		7

The notes form part of these financial statements

Page 25

BRITISH LIMOUSIN CATTLE SOCIETY LIMITED REGISTERED COMPANY NUMBER: 00989511 (England and Wales) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2023 A COMPANY LIMITED BY GUARANTEE

11. STAFF COSTS - continued

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

£60,001 - £70,000 £70,001 - £80,000 £100,001 - £110,000 12. SEMEN ROYALTY Gross sales Less payment Net amount	2023 - - 1 1 2023 £ 111,438 (85,076) 26,362	2022 1 1 - 2 2022 £ 116,786 (104,804)	2022 1 1 - 2 2022 £ 116,786 (104,804)
			11,982

12A. SURPLUS OF PARENT COMPANY

As permitted by Section 408 of the Companies Act 2006, the statement of Comprehensive income of the parent Company is not presented as part of these financial statements. The parent company's surplus for the financial year was £176,634 (2022: £335,656 deficit).

13. INTANGIBLE FIXED ASSETS (GROUP)

COST At 1 January 2023 Additions At 31 December 2023 AMORTISATION At 1 January 2023 Charge for year At 31 December 2023 NET BOOK VALUE At 31 December 2023 At 31 December 2022	Taurus database £ 178,578 104,957 283,535 54,885 12,867 67,752 215,783 123,693

The notes form part of these financial statements

Page 26

13A. INTANGIBLE FIXED ASSETS (CHARITY)

COST At 1 January 2023 Additions At 31 December 2023 AMORTISATION At 1 January 2023 Charge for year At 31 December 2023 NET BOOK VALUE At 31 December 2023 At 31 December 2022	Taurus database £ 178,578 104,957 283,535 54,885 12,867 67,752 215,783 123,693

14. TANGIBLE FIXED ASSETS (GROUP)

COST At 1 January 2023 Additions Disposals At 31 December 2023 DEPRECIATION At 1 January 2023 Charge for year Eliminated on disposal At 31 December 2023 NET BOOK VALUE At 31 December 2023 At 31 December 2022	Freehold property £ 1,077,819 - - 1,077,819 154,541 18,781 - 173,322 904,497 923,278	Fixtures and fittings £ 19,704 - (19,704) - 19,704 - (19,704) - - -	Motor vehicles £ 21,675 - - 21,675 12,531 2,286 - 14,817 6,858 9,144	Computer equipment £ 65,839 4,046 - 69,885 53,980 5,751 - 59,731 10,154 11,859	Totals £ 1,185,037 4,046 (19,704) 1,169,379 240,756 26,818 (19,704) 247,870 921,509 944,281

Included in cost or valuation of land and buildings is freehold land of £400,000 (2022 - £400,000) which is not depreciated.

The notes form part of these financial statements

Page 27

14A. TANGIBLE FIXED ASSETS (CHARITY)

COST At 1 January 2023 Additions Disposals At 31 December 2023 DEPRECIATION At 1 January 2023 Charge for year Eliminated on disposal At 31 December 2023 NET BOOK VALUE At 31 December 2023 At 31 December 2022	Freehold property £ 1,077,819 - - 1,077,819 154,541 18,781 - 173,322 904,497 923,278	Fixtures and fittings £ 19,704 - (19,704) - 19,704 - (19,704) - - -	Motor vehicles £ 21,675 - - 21,675 12,531 2,286 - 14,817 6,858 9,144	Computer equipment £ 52,727 4,046 - 56,773 48,294 3,276 - 51,570 5,203 4,434	Totals £ 1,171,925 4,046 - 1,156,267 235,070 24,343 (19,704) 239,709 916,558 936,856

Included in cost or valuation of land and buildings is freehold land of £400,000 (2022 - £400,000) which is not depreciated.

15. FIXED ASSET INVESTMENTS (GROUP)

Shares Other Additional information as follows: MARKET VALUE At 1 January 2023 Additions Disposals Revaluations At 31 December 2023 NET BOOK VALUE At 31 December 2023 At 31 December 2022	2023 £ 1,855,790 4,000 1,859,790	2022 £ 1,715,105 4,000 1,719,105 Listed investments £ 1,715,105 340,173 (295,969) 96,481 1,855,790 1,855,790 1,715,105

There were no investment assets outside the UK.

The notes form part of these financial statements

Page 28

BRITISH LIMOUSIN CATTLE SOCIETY LIMITED REGISTERED COMPANY NUMBER: 00989511 (England and Wales) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2023 A COMPANY LIMITED BY GUARANTEE

15. FIXED ASSET INVESTMENTS (GROUP)- continued

Cost or valuation at 31 December 2023 is represented by:

Valuation in 2019 Valuation in 2020 Valuation in 2021 Valuation in 2022 Valuation in 2023 Cost	Listed investments £ (233,816) 20,093 174,014 (193,505) 96,481 1,992,523 1,855,790

Investments (neither listed nor unlisted) were as follows:

Cups and trophies 15A. FIXED ASSET INVESTMENTS (CHARITY) Shares Other Additional information as follows: MARKET VALUE At 1 January 2023 Additions Disposals Revaluations At 31 December 2023 NET BOOK VALUE At 31 December 2023 At 31 December 2022	2023 £ 4,000 2023 £ 1,855,790 29,500 1,885,290	2022 £ 4,000 2022 £ 1,715,105 29,500 1,744,605 Listed investments £ 1,715,105 340,173 (295,969) 96,481 1,855,790 1,855,790 1,715,105

The notes form part of these financial statements

Page 29

BRITISH LIMOUSIN CATTLE SOCIETY LIMITED REGISTERED COMPANY NUMBER: 00989511 (England and Wales) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2023 A COMPANY LIMITED BY GUARANTEE

15A. FIXED ASSET INVESTMENTS (CHARITY) - continued

There were no investment assets outside the UK.

Cost or valuation at 31 December 2023 is represented by:

Valuation in 2019 Valuation in 2020 Valuation in 2021 Valuation in 2022 Valuation in 2023 Cost Investments (neither listed nor unlisted) were as follows: Investment in subsidiary Cups and trophies	2023 £ 25,500 4,000 29,500	Listed investments £ (233,816) 20,093 174,014 (193,505) 96,481 1,992,523 1,855,790 2022 £ 25,500 4,000 29,500

The Charity's investments at the balance sheet date in the share capital of companies include the following:

Limousin Solutions Limited

Registered office: United Kingdom Nature of business: Charitable trading company

Limousin Solutions Limited Registered office: United Kingdom Nature of business: Charitable trading company
	%
Class of share:	holding
Ordinary	100
		2023	2022
		£	£
Aggregate capital and reserves		31,594	31,594
Semenstore Limited
Registered office: United Kingdom
Nature of business: Commission on sale of semen
	%
Class of share:	holding
Ordinary	100
		2023	2022
		£	£
Aggregate capital and reserves		5,789	19,338

The notes form part of these financial statements

Page 30

15A. FIXED ASSET INVESTMENTS (CHARITY) - continued

Taurus Agridirect Limited

Registered office: United Kingdom Nature of business: Dormant % Class of share: holding Ordinary 100 Aggregate capital and reserves 16. STOCKS (GROUP) Stocks 16A. STOCKS (CHARITY) Stocks 17. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR (GROUP) Trade debtors Other debtors Prepayments and accrued income 17A. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR (CHARITY) Trade debtors Amounts owed by group undertakings Other debtors Prepayments and accrued income	2023 £ 2,159 2023 £ - 2023 £ - 2023 £ 216,409 - 31,130 247,539 2023 £ 207,457 85,823 - 30,971 324,251	2022 £ 2,159 2022 £ 2,739 2022 £ 2,739 2022 £ 215,154 - 29,872 245,026 2022 £ 208,617 169,045 - 29,695 407,357

The notes form part of these financial statements

Page 31

18. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR (CHARITY)

Trade creditors Social security and other taxes Other creditors Accruals and deferred income	2023 £ 174,291 36,020 3,943 211,020 425,274	2022 £ 141,449 14,116 15,013 278,023
		448,601

Deferred income includes £119,160 in respect of subscriptions invoiced in 2022 but relating to 2023 subscriptions. £121,670 deferred in 2021 was released in 2022.

8A. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR (CHARITY)

Trade creditors Amounts owed to group undertakings Social security and other taxes Other creditors Accruals and deferred income	2023 £ 154,135 132 35,807 3,940 204,656 398,670	2022 £ 136,262 134 13,408 15,013 271,924
		436,741

Deferred income includes £115,600 in respect of subscriptions invoiced in 2023 but relating to 2024 subscriptions. £119,160 deferred in 2022 was released in 2023.

19. LEASING AGREEMENTS (GROUP)

Minimum lease payments under non-cancellable operating leases fall due as follows:

Within one year Between one and five years	2023 £ 7,888 14,550 22,438	2022 £ 8,293 21,706
		29,999

19A. LEASING AGREEMENTS (CHARITY)

Minimum lease payments under non-cancellable operating leases fall due as follows:

Within one year Between one and five years	2023 £ 7,888 14,550 22,438	2022 £ 8,293 21,706
		29,999

The notes form part of these financial statements

Page 32

BRITISH LIMOUSIN CATTLE SOCIETY LIMITED REGISTERED COMPANY NUMBER: 00989511 (England and Wales) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2023 A COMPANY LIMITED BY GUARANTEE

20. MOVEMENT IN FUNDS

Unrestricted funds General fund TOTAL FUNDS Net movement in funds, included in the above ar Unrestricted funds General fund TOTAL FUNDS	e as follows: Incoming resources £ 1,122,145 1,122,145	At 1.1.23 £ 2,922,962 2,922,962 Resources expended £ (1,055,541) (1,055,541)	Net movement At in funds 31.12.23 £ £ 163,085 3,086,047 163,085 3,086,047 Gains and Movement losses in funds £ £ 96,481 163,085 96,481 163,085

Comparatives for movement in funds

Unrestricted funds General fund TOTAL FUNDS	At 1.1.22 £ 3,258,602 3,258,602	Net movement in funds £ (335,640) (355,640)	At 31.12.22 £ 2,922,962 2,922,962

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

Unrestricted funds General fund TOTAL FUNDS	Incoming resources £ 1,082,521 1,082,521	Resources expended £ (1,224,656) (1,224,656)	Gains and losses £ (193,505) (193,505)	Movement in funds £ (355,640) (335,640)

The notes form part of these financial statements

Page 33

BRITISH LIMOUSIN CATTLE SOCIETY LIMITED REGISTERED COMPANY NUMBER: 00989511 (England and Wales) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 DECEMBER 2023 A COMPANY LIMITED BY GUARANTEE

20. MOVEMENT IN FUNDS - Continued

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

Unrestricted funds General fund TOTAL FUNDS	At 1.1.22 £ 3,258,602 3,258,602	Net movement in funds £ (172,555) (172,555)	At 31.12.23 £ 3,086,047
			3,086,047

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

Unrestricted funds General fund TOTAL FUNDS	Incoming resources £ 2,204,666 2,204,666	Resources expended £ (2,280,197) 2,280,197	Gains and losses £ (97,024) (97,024)	Movement in funds £ (172,555) (172,555)

Unrestricted Fund:

The unrestricted funds represents the free funds of the charity, which are not designated for particular purposes.

Grant Funding :

A grant in respect of specific costs incurred on a specific project.

21. EMPLOYEE BENEFIT OBLIGATIONS

British Limousin Cattle Society Limited operates a defined contributions pension scheme. The cost of contributions to the pension scheme amounted to £5,885 (2022: £3,994). At 31 December 2023 the outstanding amount was £1,212 (2022: £679).

22. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 ‘The Financial Reporting Standard Applicable in the UK and Republic of Ireland’, not to disclose related party transactions with the wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

23. STATUS OF THE CHARITY

British Limousin Cattle Society Limited is a company limited by guarantee not having any share capital.

The notes form part of these financial statements

Page 34

A COMPANY LIMITED BY GUARANTEE

BRITISH LIMOUSIN CATTLE SOCIETY LIMITED REGISTERED COMPANY NUMBER: 00989511 (England and Wales) DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023

INCOME AND ENDOWMENTS Donations and legacies Annual memberships Other trading activities Shop sales Miscellaneous Semen sales Remitted to suppliers Entry fees Packing and delivery Investment income Concorde house rent Interest and dividends Charitable activities Registration fees Registration refunds Import/export fees DNA testing Sale entries 50thAnniversary income Sales Commission Semen royalty (net) Sponsorship and advertising Limousin performance recording Total incoming resources EXPENDITURE Other trading activities Shop/ promotional goods Packing and delivery Health certificates Charitable activities Office supplies Carried forward	2023 £ 131,130 131,130 604 - 34,040 (33,149) 5,300 16,321 23,116 56,484 46,028 102,512 528,111 (35,889) 4,900 162,833 17,480 - 71,857 26,362 15,101 74,632 865,387 1,122,145 - 10,134 - 10,134 33,439 33,439	2022 £ 135,573 135,573 1,126 1,997 46,095 (33,310) 5,400 15,991 37,299 22,072 43,228 65,300 512,479 (37,360) 2,400 171,113 6,500 62,639 64,051 11,982 13,875 36,670 844,349 1,082,521 270 11,947 - 12,217 45,336 45,336

This page does not form part of the statutory financial statements

Page 35

BRITISH LIMOUSIN CATTLE SOCIETY LIMITED REGISTERED COMPANY NUMBER: 00989511 (England and Wales) DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023 A COMPANY LIMITED BY GUARANTEE

Charitable activities Brought forward Subscriptions Publications Shows and events Clubs Other sales 50th anniversary Taurus costs DNA testing Computer costs Legal and professional Communication and marketing Limousin performance recording Bad debts Northern Ireland 50th show and sales Herd inspections Prize fund and sponsorship Human resources Other Support costs Finance Investec fees Bank and credit card charges Foreign exchange Other Salary and pension costs Staff expenses - travel and accommodation Concorde house premises expenses Council expenses Amort of taurus database Freehold property Fixtures and fittings Motor vehicles depreciation Computer equipment depreciation Profit on sale of tangible fixed assets Governance costs Salary costs Accounts and audit Publications Staff expenses - travel and accommodation Council expenses	2023 £ 33,439 3,113 37,156 48,108 31,436 21,677 - 11,567 187,707 10,132 13,478 32,126 18,625 (11,517) - 8,269 4,463 18,227 5,863 473,869 7,986 6,861 732 15,579 352,425 10,145 49,731 10,151 12,867 18,781 - 2,286 5,751 - 462,137 45,150 25,707 12,748 1,912 8,305 93,822	2022 £ 45,336 3,880 46,713 77,478 28,975 20,458 118,611 15,788 183,601 9,060 50,010 32,952 20,000 13,416 8,401 12,970 2,810 25,520 - 715,979 8,857 5,203 (2,154) 11,906 295,932 6,609 53,067 9,126 18,884 18,506 - 7,799 5,747 (4,463) 411,207 31,594 20,863 12,555 868 7,467 73,347

This page does not form part of the statutory financial statements

Page 36

BRITISH LIMOUSIN CATTLE SOCIETY LIMITED REGISTERED COMPANY NUMBER: 00989511 (England and Wales) DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023 A COMPANY LIMITED BY GUARANTEE

Total resources expended Net (expenditure)/income before gains and losses Realised recognised gains and losses Unrealised / realised investment gain/loss Net (expenditure)/income	2023 £ 1,055,541 66,604 96,481 163,085	2022 £ 1,224,656 (142,135) (193,505) (335,640)

This page does not form part of the statutory financial statements.

Page 37

TC Murphy Salisbury Limited

Celixir House, Stratford Business and Technology Park, Banbury Road, Stratford Upon Avon, CV37 7GZ

www.limousin.co.uk

Dear Sirs

British Limousin Cattle Society

The following representations are made on the basis of enquiries of management and staff with relevant knowledge and experience such as we consider necessary in connection with your audit of the charity’s financial statements for the year ended 31 December 2023. These enquiries have included inspection of supporting documentation where appropriate. All representations are made to the best of our knowledge and belief.

GENERAL

We have fulfilled our responsibilities as Trustee as set out in the terms of your engagement letter under the Companies Act 2006, for preparing financial statements in accordance with applicable law and United Kingdom Accounting Standards (UK Generally Accepted Accounting Practice), for being satisfied that they give a true and fair view and for making accurate representations to you.
All the transactions undertaken by the charity have been properly reflected and recorded in the accounting records.
All the accounting records have been made available to you for the purpose of your audit. We have provided you with unrestricted access to all appropriate persons within the charity. All other records and related information have been made available to you.
The financial statements are free of material misstatements, including omissions. We confirm that the adjustments as set out in the appendix to this letter should be made.
The effects of uncorrected misstatements as set out in the appendix to this letter are immaterial both individually and in total.

INTERNAL CONTROL AND FRAUD

We acknowledge our responsibility for the design, implementation and maintenance of internal control systems to prevent and detect fraud and error. We have disclosed to you the results of our risk assessment that the financial statements may be misstated as a result of fraud.
There were and are no instances of known or suspected fraud affecting the entity involving management, employees who have a significant role in internal control or others that could have a material effect on the financial statements.
There were and are no allegations of fraud or suspected fraud affecting the entity’s financial statements communicated by current or former employees, analysts, regulators or others.

ASSETS AND LIABILITIES

The charity has satisfactory title to all assets and there are no liens or encumbrances on the charity’s assets, except for those that are disclosed in the notes to the financial statements.
All actual liabilities, contingent liabilities and guarantees given to third parties have been recorded or disclosed as appropriate.
We have no plans or intentions that may materially alter the carrying value and, where relevant, the fair value measurements or classification of assets and liabilities reflected in the financial statements.

The British Limousin Cattle Society Ltd. Concorde House, 24 Warwick New Road, Leamington Spa, Warwickshire CV32 5JG T. 02476 696500 | E. info@limousin.co.uk Registered No. 00989511 | VAT No. 159 0707 55 | Registered Charity No. 262966

ACCOUNTING ESTIMATES

Significant assumptions used by us in making accounting estimates, including those measured at fair value, are reasonable.

LEGAL CLAIMS

There were and are no claims in connection with litigation that have been, or are expected to be, received and such matters, as appropriate, have been properly accounted for and disclosed in the financial statements.

LAWS AND REGULATIONS

There were no known instances of non-compliance or suspected non-compliance with laws and regulations whose effects should be considered when preparing the financial statements.

RELATED PARTIES

Related party relationships and transactions have been appropriately accounted for and disclosed in the financial statements. We have disclosed to you all relevant information concerning such relationships and transactions and are not aware of any other matters which require disclosure in order to comply with the requirements of company law or accounting standards.

SUBSEQUENT EVENTS

There have been no events subsequent to the date of the financial statements which require adjustment or disclosure.

GOING CONCERN

We believe that the charity’s financial statements should be prepared on a going concern basis on the grounds that current and future sources of funding or support will be more than adequate for the charity’s needs. We have considered a period of twelve months from the date of approval of the financial statements. We believe that no further disclosures relating to the charity’s ability to continue as a going concern need to be made in the financial statements.

SANCTIONS COMPLIANCE

We confirm that we have reviewed the UK Sanctions list (https://www.gov.uk/government/publications/theuk-sanctions-list) and confirm that to our knowledge the charity has not had any transactions with any entity connected to those listed. We confirm we have complied with the requirements of the UK sanctions regime throughout the financial year and subsequently.

We acknowledge our legal responsibilities regarding disclosure of information to you as auditors and confirm that so far as we are aware, there is no relevant audit information needed by you in connection with preparing your audit report of which you are unaware.

Each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that you are aware of that information.

Yours faithfully

.............................................................................................................................. Dyfan James

Signed on behalf of the board of trustees Date .................................. 16/09/2024

Appendix 1 Adjusted misstatements

Dyfan James

..............................................................................................................................

Signed on behalf of the board of trustees

Date: 16/09/2024

Appendix 2 Unadjusted misstatements

•

Dyfan James

..............................................................................................................................

Signed on behalf of the board of trustees

Date: 16/09/2024

Our Ref : EKH/MB/BRI2030 Date : 11 September 2024

The Directors British Limousin Cattle Society Limited Concorde House 24 New Warwick Road Leamington Spa CV32 5JG

Celixir House Stratford Business & Technology Park Innovation Way Banbury Road Stratford-upon-Avon CV37 7GZ

Dear Sirs

British Limousin Cattle Society Limited

We are writing to draw your attention to various matters that arose during our audit of the company’s financial statements for the year ended 31 December 2023.

Expected modification to the auditors’ report

There are no expected modifications to the auditors’ report.

Unadjusted misstatements

A schedule is attached of all the unadjusted misstatements determined during the course of the audit, except for those considered immaterial. See Appendix 1

Qualitative aspects of the entity’s accounting practices and financial reporting

We have no comments to make concerning the qualitative aspects of the accounting practices and financial reporting.

In making our recommendations, we have considered the size of your company and the number of staff you employ. We shall be glad if you will let us know what steps you have taken in connection with the above.

Significant difficulties encountered during the audit

We did not encounter any significant difficulties during the course of our audit.

Material weaknesses in the accounting and internal control systems

Our review of the company's accounting and internal control systems is carried out to assist us in expressing an opinion on the accounts of the company as a whole. This work is not primarily directed towards the discovery of weaknesses or the detection of fraud or other irregularities (other than those which would influence us in forming that opinion) and should not therefore be relied upon to show that no other weaknesses exist. Accordingly, we refer only to those matters which have come to our attention during the course of our normal audit work and do not attempt to indicate all possible improvements which a special review might develop.

In making our recommendations, we have considered the size of your company and the number of staff you employ. See Appendix 2 .

A schedule of recommendations is attached. We shall be glad if you will let us know what steps you have taken in connection with those listed.

Other matters required by auditing standards to be communicated.

APB Ethical Standard 1 “Integrity, Objectivity and Independence” and ISA 260 requires us to communicate with you on a timely basis on all significant facts and matters that bear upon our independence and objectivity. The aim of these communications is to ensure full and fair disclosure by us to those charged with governance on matters in which you have an interest.

We have communicated to you the fact that we provide accounting and taxation services to the Company in addition to acting as auditors.

We are not aware of any other relationships between TC Murphy Salisbury and the Company that, in our professional judgment, may reasonably be thought to bear on our independence or the objectivity of the audit engagement team.

We confirm that in our professional judgment, the Firm is independent within the meaning of regulatory and professional requirements and the objectivity of the audit engagement partner and audit staff has not been compromised.

We consider that our independence in this context is a matter that should be reviewed by both you and ourselves. It is therefore important that you consider the facts of which you are aware and come to a view. Should you have any specific matters that you wish to discuss, please contact us.

Other matters relating to the audit

There are no other matters to communicate to you.

This letter has been prepared for your private use. It should not be disclosed to a third party without our written consent, nor will we accept any responsibility whatsoever in respect of its contents to any other person.

May we take this opportunity of thanking you and your staff for their assistance and cooperation during the conduct of our audit.

If we can be of any further assistance, please contact Mark Bullock (FCA)

TC Group

Appendix I Unadjusted mi&statements identified: P&L lance shttt Per fmancial statements: 176,633 3,085.957 Dtsc ' tion of errors idtntifitd: Amortisatlonb...d. from pnorperiod Utweid debtor- nonmember - PrePallent$ break.doThn difference beTheen cb.ents schedule and TB - Ddyerence betreen the dients F.4R and TB for TE.4 Cost io.& 1.089 3.796 3.452 10,8U 1.089 3.796 3.452 Dtfference bets.een the clL"ents F.4R and TB forTF.4 Dep'n - 4.111 Potential res1$ 181,9) j 3,091 ?58

Appendix 2 Identified weaknesses in internal controls.

Weakness identified	Potential risk	Suggested solution
For registration income and the related commission cost a direct debit and direct credit report from sage is manually amended by Ruby before it is input in the PTX software.	Ruby could accidently delete a line/ override details resulting in the incorrect details being input into the system and income beingmissed	A second review of the report should take place before it is submitted into the PTX software
Also with regards to above point currently Ruby is the only person responsible for the spreadsheet.	The direct credit report could be amended to add Ruby's bank details so that she receives money meant for members into her private account	A second review of the report should take place before it is submitted into the PTX software
No purchase orders are raised	there is not trail, you cannot see who requested the purchase invoice so increases risk of there being fraudulent transactions included	Suppliers to provide purchase orders as another step to ensure fictitious invoices are not created internally
Ruby creates and authorises purchases on Sage	control deficiency takes as they are not authorised by another individual so in theory Ruby could raise the invoices and these won't get verified which may lead to fictiouspayments	Hire another bookkeeper to do verify that purchase invoices on Sage are verified to ensure appropriate segregation of duties in place.

Since Ruby has access to the bank she could raise an invoice on sage and pay it without the need of authorisation if it's below the credit limit.	Ruby could raise the invoices and these won't get verified which may lead to fictious payments made if they are overlooked by Alice when doing the monthly payments runs.	Ensure segregation of duties in place to ensure transactions goings on the BACS Payment Run are Bona-fide.
Journals are not checked/ authorised	Journals are not checked/ authorised by anyone so in effect fictitious journals can be posted and subsequently won't be checked.	Hire another bookkeeper to do verify that journals are bona fide on Sage are verified to ensure appropriate segregation of duties in place.
Sales commission is not chased	No sales commission is received which is an important income source for the charity.	Ensure that commission income is chased if not received by the organisers.
For computer equipment the cost and depreciation C/Fwd. differs between the fixed asset register and the amount identified in the nominal ledger/in the accounts. However the Net Book Value is the same.	The reason for this is that there are fully depreciated assets which have been removed from the fixed asset register, but not the accounts.	Either the fixed asset register is missing assets that should be added back in or more likely, part of the b/fwd. cost and depreciation requires disposal and elimination to agree to the register
There are several negative debtor balances on the aged debtors listing	The charity is holding onto money that does not belong to it	To include separate supplier listing for customers in order to avoid having negative trade debtors moving forward.
When a member joins they can either pay for a 3 month or 1 year membership. Every December memberships are automatically renewed at a price of £50 for the year. It has been noted that there are some members who paid the full £50 for 2023 membership in September 2023, but then also paid £50 again in December 2023 for 2024 membership meaning they have effectively paid £50 for one month's membership	The member has paid the same fee as other members who received membership for 1 year, but only had the benefit of membership for 3 months	Depending on the date the member first joins consider time appointing the initial fee

Ensure bank reconciliations are completed on all accounts which include the inactive accounts as interest will alter the year-end figure	Incorrect figures used on sage for the bank	Ensure that all bank accounts are reconciled and all bank statements are readily available.
To include Jonathan Stacey as a trustees details do not agree to charities commissions	Incorrect statutory records could lead to issues and potential penalties if not updated in a timelymanner.	Ensure company secretarial work is completed and both companies house and charities commission stays up-to-date.
PAYE mis postings by the client	under/overpayment of PAYE could lead to issues and potential penalties from HMRC	Ensure PAYE summary is reviewed before 22nd to confirm is there are any outstanding balances