ROYAL ULSTER AGRICULTURAL SOCIETY ANNUAL REPORT AND CONSOI.IDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2022 CHARITY NUMBER: 101946
ROYAL ULSTER AGRICULTURAL SOCIETY CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2022 Pvdge Legal and admln15trative information Report of the Couneil 3 to 10 Report of the Indep¢ndent Audltors 11 to 13 Consolfidated Statement of Flnanci81 AetlvAtles ConsoRldated B4lAnce Sheet 14 15 Soclety BAlance Sheet 16 Stitement$ of Changes In Fund5 17 Consolidydted Cash Flow Statement 18 Notes to the Consolld&ted Cash Flow Statement 19 Iyotes to the Consolldated Financlal Statements 20 to 32
ROYAL ULSTER AGRICULTURAL SOCIETY LEGAL AND ADMtNISTRATIVE INFORMATION FOR THE YEAR ENDED 31 ST OCTOBER 2022 PATRON: HRH The Earl Df We&sex VICE PATRON.. Billy Martin OBE FRA8S PRESIDENT: Mrs Christine Adams Bajrlay Bell NDA FRAgS Vaughan Byrne Dr Sain Cainpbell RobEn Cherry MBE FRAgS Mrs Linda Davi5 Mrs Pat Erwi Ashley J Fleming FRAgS Miss Pauline Gibson Desinond Gib50n PAST PRESIDENTS: John BamberMBE, MArgat Collinson OBE, Roly Mrs Jayne H2neSs-Bortcs MSC. BA (Honsl ARAgS Cunningh•n fvassed awuy l&ih Ociober 2022]. Johth G Kelly OBE BAgr DipAgrComi)J FRAgS, Brian T King FRAgS. Cyril M Millar FRAgS. The Ian Harvey LoTd O'Neill KCVO TD, Willin H Robson OBE bRA8S. J L Courtenay Nornia Hoy ThompsDn DL BA BBS Mrs Denise Kelso Jay Lindsay Richa Lyttl¢ Alistair McDon41d Adiaaij M¢Gowan Robert S R M¢Kibbin GeotThry Rthgland Trevor Shields ARAgS Stephen Smith BAgr DipFM FRA8S Mi8s Alexandjx Woods DEPUTY PRESIDENT: C Jokn HcTWirtg OBE Nsch FRAgS VICE PRF.SIDF.NTS.. RETIRING MARCH 2023 lan Duff BAgr Msc MIAgrE. FRAgS. Terence McKeag BEM, Edwin T Adams. David T C Wotknan FRAgS RETIRING MARCH 2024 C John Hennuw OBE Nsch FRAgS, J A Conn Williamson tpassed Qway 31Jih November 2022J. Jean Monn, Drane Gibson. RETIRtNG MARCH 2tr25 Alan Arm$tronglappoiKied I" April 21J22], Wolla¢e Boyd, Sllm M¢Causland lappoiniedHonor&ry Vice Presideni IO, November 2022], George Hiini]n. RETIRIIYG MARCH 2025 Gareth AnnsitY)ng Stewart H&xter AThdw Binghom Ms Libby Clarke James Cobum David Cunninghom lappointed Vice President on 10th November 20221 Ni8¢1 T Haznill Robin ]rvine HND, Dipfmatt. FRAIS Caroline A Jebb Judith Lyons liarlcs MArk David G Mark John McMoTdie John meeT Bsc IFlonsl CErtg Dr ChArlolte A Moore BAgr PhD DipAgrComm, FRAgS Pcter MorTOW John Murphy Mr$ Joanne M McKibbin The Hon Mt5 Celia O'N¢ill BA IH0Th51 John El RObin.n Vanda Stewart Siefan Smyth [pass¢d 4way [6th June 20221 Patricia SwandL,I Ipassed away 1st October 20221 David Thoinp50n RETIRING MARCH 2026.. Wilgon Logan, Crosby Cl¢iAnd FRA8S, Robert Harkne8s, Austin Peny. HONORARY VICL PRESIDENTS., Dorinda Lady Dunicath I55¢ away 19th March 20221 ELECTED MEMBF.RS: The Coun¢ll of the RUAS coDgIBti of fhe PreBldent, PA81 Presld¢nt4 Vlte Pr¢$ldent$ the foUowlnK'. REI'IEiING MARCH 2023 Mervyn Achcso A James C Allcn Mn Shirley Anderson Harold Di¢key BriRn Hunt¢r WElliam Jon¢s Gernrd FTancis Kelly Brendan Kelly M4ik Logan OND PRAgS Ian Matk John Campbell Martin BEM HNDIAgri¢} Lm Nsch, FRAgS W Duke Mccartney Mrs Sara McCra¢ken Williattl M¢E]roy Howanl Mcllwjine Miss Roberta Mcmullan James MCV Morrisott BEM. BAgr [Honsl FRA8S David O'Neill Mrs Myrtle Peak Wilbert Rankin Jason Robert Rankin NSdL, ARAgS Samuel James Smyth Jay Warden Mrs Leamle Workman NQi¢hael J Drake MBE ljtsigned 14th March 20221 Dan McConni¢k Iresigned D¢Lember 20221 Appolnted hy the DEp%rtment of Agrl¢ulture. EnvlronmentAI & Rural Affalrs Dr Alist4Lir F Cat50n BAgr PhD PGCHET FRAgS Nomian Fulton Robert J Huey MVB, Dvph(MHI. MRCVS. ARAgS Martin McKetMtry SENIOR MANAGEMENT TEAM Finance Director & Commerclol Dir¢etor TherE$a Moryissey FCPFA, MS¢, BSclEconl Op¢rAtlons Director Rhonda Geary RETIIUNG MARCH 2024 William Edward Adam60n FRA8S Mrs Cynthia A&e Page I
ROYAL ULSTER AGRICULTURAL SOCIETY LEGAL AND ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED 31ST OCTOBER 2022 REGISTERED OFFICE RUAS Office Eikon Exhibition Centre Balmoral Park Hatftown Road Lisburn BT27 5RD AUDITOILS Bakcr Tilly Mooncy Moore Slatutory Auditor5 17 Clarendon Road Clarendon Dock Belfasi Co Antrim BTI 3BG SOLICITORS Johns Elliott 40 Linenhall Street Belfast BT2 8BA Mills Selig 21 Arthur Sircet Belfasl BTI 4GA BANKERS Dankse Bank Donegal Square West Bclfasl BTI 6SJ CHARITIES COMMISSION REGISTERED NUMBER 101946 Page 2
ROYAL ULSTER AGRICULTURAL SOCIETY REPORT OF THE COUNCIL FOR THE YEAR ENDED 31ST OCTOBER 2022 Th¢ Council presents Its annual report and audited consolidated financial 51alemenls of the group for the year ended 31 October 2022. The Council has adopted the provisions of the 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) effe¢live I sl January 2019 - (Charities SORP (FRS 102)), in preparing the annual report and financial 51atem¢nts of the Society. REFERENCE AND ADMINISTRATION DETAILS Details of the registered office, elected members, independent advisors and other relevant infomation are given on pages 110 2. DETAIIS OF THE SOCIETY The Soclety The Society was established in 1854 as the North East Agricultural Association. It was incorporated in 1894 under the Educational Endowments {Ireland) Act 1885 and a Scheme was drawn up ai that time for its future governance and management. The Association changed ils name in 1903 to the Ulster Agriculiural Society and permission to use the Royal prefix was granted the following year. The Society Is rcgislered with the Chariiy Commission for Northern Ireland (Northern Ireland Charity number: NICI 01946, Inland Revenue Ref. XN 46025) and its income is applied towards the delivery of its objectives. Commercl41 Tradlng Actlvltles The King's Hall Exhibition & Conference Centre Limited was incojporaicd in October 1997 as a wholly-owned subsidiary of the Royal Ulster Agricultural Society. This company's principal activity is Ihc provision of event facilities and event operation servi¢es for hire by external event organisers. This company has no fixed assets or staff bul is charged a li¢ence fee for the use of the Society's premises and equipment and a management fee lo Cover eslablishmeni expenses and the secondment of staff. King's Hall Harberton Estates Limited was incorporated in November 2014 as a wholly-owned subsidiary of the Society. This ¢oinpany's sole activity is managing residential real eslale activities. This company has no staff bul is charged a management fee by the Society for the secondment of staff and resources. KH Balmoral Eslales Limited was incorporated in October 2017 as a wholly-owned subsidiary of the Society. This company's sole actlvlly is managing Commercial real estate activities. This company ha5 no staff but is charged a management fee by the Society for the secondmenl of staff and rcsourc¢s. Any surpluses generated by the subsidiary companies are paid lo the Society under covenant. STRUCTURE, GOVERNANCE AND MANAGEMENT Governllnce and Internal Control Council has ovcrall responsibility for ensuring that the Society has an appropriat¢ Sy51em of controls, financial and otherwise, and for providing reasonable assurance that il is operating efficiently and effectively, its asscts are Safeguard against unaulhorised use or disposition, proper records are maintained, and finan¢ial information uscd within the Society or for publication is reliable and that it complies with relevant laws and regulations. The Council, as a corporate body, is also considered the trustee of the Society for Charities Act purposes. The President of the Society shall be cx-officio the Chairnian of the Council. The system of internal controls is designed to provide reasonable, but not absolute, assurance against material misslatemenl or loss. Key features of the system include the preparation of an annual budget for approval by the Finance Commillee.. regular consideration by the Finance Committee of financial results. review of variance from budgets,. non-financial performance indicators and benchmarking rcviews.. delegation of authority and segregation of dutles. and the identification, review and management of strategic, business and operational rfftsks. Page 3
ROYAL ULSTER AGRICULTURAL SOCIETY REPORT OF THE COUNCIL FOR THE YEAR ENDED 31ST OCTOBER 2022 STRUCTURE, GOVERNANCE AND MANAGEMEWf- continued Employees A staff of nineteen employees undertakes the management and operations of the Society. The Society's employment policies and pra¢lices are reviewed annually lo ensure they comply with local relevant employment legislation. The Society has a training and development policy to ensure that all staff are competent lo undertake the duties set out in their job descriptions. Regular fornial meetings lake placc to ensure communication of all pertinent maltcrs. Council would like lo thank the staff members for their professional contribution to the Society. and their continued loyalty, support and hard work Organl$atlonAR Structure Details of how Council is composed, and its current membership, can be seen on page l. The Scheme provides for the appointment by Council of committees consisting of members of the Society. Potential new Council members are nominatcd by a Society member and elected by the Society's membership. They are subject to rctiremenl by rotation bul are eligible to sland for re-cleclion. Commiltecs mcel as rcquired and make recommendallons for decision by Council. The Finance Committee has a range of delegated dulles that il can implement without referenc¢ lo Council. During the financial year, there were sixly-one committee meetings, and Council met on seven occasions. Rl$k management Through the Finance Committee, Council has eslablishcd a detailed procedure lo review the significant risks to which the Society is exposed. This review aims lo establish a risk management strategy which comprises.. Regular review of the risks that the Society may face, which are evaluated on an annual basis based on a comprehenstve risk register. The eslablishmenl of systems and procedures to miligale those risks identified in the review. The implementation of procedures designed to minimise the impact on the Society should any identified risks materialise. The review of significant risks ha5 identified the following key risks.. The Society's firtancial sustainabilily is reliaiit on the generation of enabling finance through its commercial subsidiaries, which transfer under covenant all surpluses generated lo the Society. The nced to ensurc adequate succession planning and a retention policy is in place for the Council, committees and key management positions. The need to maintain adequate levels of capital funds held as unrestricted reserves to ensure that the Soctety's development strategy can bc implemented and that Ihird-party obstacles can be managed and were necessary miligaled. The risk that Socicly events or enabling finance activities are cancelled due lo external factors such as weaihcr, an outbrcak of animal illnesses, political factors or pandemics. The Finance Committee has prudently reviewed the significant risks that the Society faces and bclieves that achievin8 the free reserves sufficient to fund twelve months of normat activity combined with the annual review of the controls over key financial systems will provide adequate resources in the evenl of adverse conditions. The Finance Committee has a150 examined other busin¢s5 and operational risks the Society faces and confirms that it has established systems to mitigate significant risks. Council is responsible for the management of risks faced by the Society. Detailed ¢onsideraiion of risk is delegated to the Finance Committee, as51Sted by the Senior Management Team. A formaI review of the So¢iety's risk management process is undertaken annually. OBJECTIVES AND ACTIVITIES The Scheme, which was last amcnded in 1984, identifies the Council as a body corporate with power and ability to exercise general supervision and control over the Society's affairs. The Society's property, funds and securitie5 are vested in Council lo be ulilised for the purpose of fulfilling the charitablc objectives of the Society as detailed within the Scheme. Page 4
ROYAL ULSTER AGIUCULTUIL4L SOCIETY REPORT OF THE COUIW4CIL FOR THE YEAR ENDED 31ST OCTOBER 2022 ORJECTIVES AND ACTIVITIES _ continued The Society's charitable objectives ar¢.. The promotion of agriculture by holding agricultural shows and delivering agriculturaI instnjction tEwough cxhibitions, Icclur¢s and other such means as may from timc to time be found expedient and in accordance with the provisions of the Scheme. The promotion of industries, art, sciences and lilcralure. These items were added to the Scheme in 1937 but have always been treated as minor relative to the main objcclive of promoting agriculture. The RUAS seeks to achieve its objectives through the following.. Delivery of agricultural shows which seek to.. Contribute to the enrichment of public awareness and understanding of the Province's agri-food sector. Pro]i]ote good fam]ing practices and development of the skills and crafts needed to enhance the scclor. Encourage the advancement of breeding and rearing of livestock (including horscs and poultry). Presentation of awards to those engaged in agriculture, particularly recognising individual employ¢es' service in the agricultural sector. Working in partnership with other bodies to assist in the promotion of the sector. Promotion of the arts through maintaining facilities and s¢rvices to enable the venues to host a range of cultural and sporting events. Furthermore KH Balmoral Eslales Limited oversees The preservation of the iconic King's Hall building which is listed with the Northern Ireland Environment Agency, The Slratcgy of the Society is as follows.. Ensure that the objectives as detailed in the Scheme are delivered. Ensure that the Society's assets, investments and funds are prudently managed. Utilise the Society's assets, investments and funds to implement sustainable enabling finance streams. PUBLIC BENEFIT Council considers that these objcclives, activities and goals have a ¢lear public benefit in enhancing rural communities, swial, economic, and cultural well-being. The public benefits include: Improving Standards of livestock and agricultural practices within the agri¢ullural sector in Northern Ireland in particular and beyond,. Preycrving and maintaining high standards and skill levels within the agricultural sector in Northcm Ireland and beyond,, Developing and preserving of rural crafts and craftsmanship necessary to enhance the agricultural sector in the Province Ensuring that rural traditions and ski115 are passed down through successive generations of the agri¢ullurai community, Improving the welfare of agricultural animals through the recognition of high standards of agricultural husbandry throughout the Province and beyond. Enhancing the general public's knowledge and understanding of the Province's agri-food sector. In drafting these slatemenls, Council ha5 complied with the duty outlined in Section 4 of the Charities Act (Northern Ireland) 2008 (as amended by the Charities Act (Northern Ireland) 2022), to have due regard to the public benefit guidance published by the Charity Commission. ACHIEVEMENTS AND PERFORMANCE The financial year represented a p¢riod of recovery and growth for the Society as th¢ impact of the pandemi¢ dissipated and activities during the year wer¢ revilalised with support from a wide range of 51akeholders. The Council committed lo expending funds from 115 reserves to hold tt5 annual agricultural shows in safe and responsible forniats lo ensure that the Society continued to deliver its objectives. In order to achieve the Society's objectives, the following events have taken place within the financial year.. Page 5
ROYAL ULSTER AGRICULTURAL SOCIETY REPORT OF THE COiNCIL FOR THE YEAR ENDED 31ST OCTOBER 2022 ROYAI Ulster Premier Beef & LAmb Champfionships 2021 The 4th Royal Ulster Premier Beef & Lamb Championships, in partnership with principal sponsor Bank of Ireland, took place on Tuesday 23rd Nov¢mbei' 202 I, in the Logan Hall. The Society welcomed visitors to the Show and Sale, having implemented COVID-19 miligalions to ensure the safety of all attendee5. A record number of exceptional quality animals were entered this year. with one hundred and two cattle, thirty-three calves and fifty-nine pairs of shecp coming forward on the day. James Nesbiti from Scotland judged the cattle classes and championships, Garry Jennings from Kesh judged the Ulster Housewife Championship. and Alfie MutTay judged the lambs. The judges confirmed that thcy were impressed with the standard of anima15 presentcd. The Show and Sale were live-slreamed through Ihe website, Facebook and YouTube, where viewers could enjoy the spectacular exhibition of beef cattle and lamb classes and the highly anticipated auction. Royal Ulster WAnter Fair 2021 The Society was pleased lo relum to a live formal for the 35th Royal Ulslcr Winter Fair in Association with Danske Bank on Thursday 9th December 2021. Altendanee al the event exceeded expectations, given the prevailing environmental conditions and COVID-19 restrictions. The event hosted 173 seelor-specific trade stands wllh Iwenty-five firsl-time trade exhibitors, including companies from Italy. France, Germany. and Florida. This represented approximately sevcnty perccnl attendance from traditional exhibitors. Anna Marie McHugh, of the National Ploughing Championships in Alhy, judged the Trade Stand Awards. Lely won Ihe Best Large Trade Stand Award, and Moore Concrete won the Bcsl Small Trade Stand Award. Over 140 cattle were entered, with almost seventy percent coming forward on the day. Th¢ event attracted a strong livestock entry from ROI, with some thirty-seven cattle entering. The livestock was housed for the rirsl time in the recently complcled Annex. Edward Griffiths from Yorkshire was the judge on the day. The Showmanship Junior winner was Ava Montgomery from Lisburn. while Jack King from Ballymena won the Intermediate Class. Alisa Fleming from Seaforde won the Senior Class. Sunrise Shorthorns won Ihc Dairy Shorthorn Breed Championship with Sunrise Perfect Heather. Clandeboye Estates won the Jersey Championship with Clandeboye Tequilla Cookie, the Ayrshire Champion went to Christian Keenan with Three Mile Pretty Rock and the Holstein Championship was won by Hallow Holsteins with Hallow Atwood Carman. The overall Interbreed champion was won by Clandeboye Estates, with Clandeboyc Tequila Cookie. The Best Kept Dairy Stall was won by William & Alan Paul from Maghera. Live streaming of the catilejudging was a new addition lo Winicr Fair and approximately 3,000 peoplc tuned in via Facebook and YouTube. Balmoral Show 2022 With the relaxation of COVID-19 regulations, the Council could schedule the 153rd Balmoral Show for I I th to 14th May 2022. The Society was delighted to welcome a significant number of visitors over the four days. Of note, the Society welcomed the Secretary of State, Brandon Lewis, and the Saudi Ambassador for Ireland and his family to the Show. Balmoral Show was well supported by livestock exhibitors with 2,695 animals compcling within the livestock competitions. Once again, the cattle exhibitors delivered an excellent exhibit of high-quality livestock, with 589 cattle presented for judgii)g over the Show's four days. The President's Trophy & Special Prize for the overall Dairy breed Champion of Champions was won by the Fleming Family From Seaforde and the President's Trophy & Special Prize for the overall Beef breed Champion of Champions was won by S & J Smyth froin Newtownstewart. Th¢ Show's finale was the callle parade which this year saw a selection of stock frorn across th¢ breeds proudly parade in the Main Arena. The Horse Classes and Show Jumping Competitions in the Show were a great success, with the horses competing in excellent condition. Following ils absence in 2021, the full complement of International show jumping competitions made a welcome return lo the Balmoral Show programme for May 2022. Balmoral Show hosis the only CS12* International Show that Is held in Northern Ireland, and demand is high from athletes from all over UK and Ireland striving to bring their top horses to jump on the Society's exceptional Grade l international standard grass arena Page 6
ROYAL ULSTER AGIUCULTURAL SOCIETY REPORT OF THE COUNCIL FOR THE YEAR ENDED 3 1ST ooBER 2022 ACHIEVEMENTS AND PERFORMANCE - eontinued The show jumping highlight of the main ar¢na programme was the prestigious International Grand Prix which on Friday afternoon with 18-year-old young rider Niamh McEvoy from Omagh, claiming Vi¢lory on Templepatrick Welcome Limmcrick, owned by local man Robin Bingham. The Main Arena attraction programme, included displays of a quad slunl team and a polo exhibition match. A highlight of the event was the RAF parachute display team. who closed the Show on Saturday evening. The Sheep Shearing Competitions were again hosted in the Fold structure. The competitions saw 1600 sheep shom. and 160 competitors demonstrated high standards of shearing, especially in the young sliearers. competitions. The Society was honoured to host the Six Nations competition this year and delighted that the Northem Ireland team where rowned the worthy winners. Given the high level of overseas interest in sheep shearing, the competitions w¢re live- streamed. The rclurn of competitions for the Sheep Section was wel¢omed, and several new sheep classes were introduced to the ompetilivc line-up. Making their debut in the sheep rings were the following breeds,. Bleu Du Maine, Berrichon and Valais Blacknose sheep. The new breeds performed well. with the Berrichon breed winning the champion pair in the Interbreed Competition. Within the Goal Se¢lion, the Champion and Rescrve Champion goat was won by Marcus Galbraith from Portstewart. Unfortunately, the poultry, pigeon and egg sections were cancelled in line with DAERA rcslrietions on poultry gatherings due to avian flu's prevalence. The Chairman of the Poultry Committee and his family provided a display of 150 birds from Ihcir tlock. The standard of birds within the display was exceptional, and the Chairnian's enduring efforts to deliver the exhibit were commendable. The Show wa5 well supported by livestock exhibitors in all sections and the Society is grateful for the on-going 5UPPOrt of the livcslock exhibitors. The Healthy Horticulture Marquee at the Show was well received and delivered educational content lo a wide audience. Exhibitors in this section included Rural Support, National Trust, RSPB, CAFRE, Horticulture Forum, and Ulster Bee Keepers, delivering informative exhibits. The VEG NI IHorticultural Forum exhibit was excellent and delivered a wide variety of enga&Fing and educational topics alongside the Mighty Spud display. which included Cookery demonstrations. The polling table for kids to plant seeds and plants was successful with Ihc CAFRF. students providing information and assistance. Other educational altraclions at the Show included the Children's Fami which was extremely well attended by familie5. The Food Nl Pavilion returned to the Show with over l 00 local food and drink companies and three theatre kitchens. Organised by f(M)d and drink membership organisalion Food NI, and supported by the Northem Ireland Regional Food Programme, and Tourism Nl, The Pavilion included a number of new and innovative businesses that started during the pandemic with emerging trends in suslainabilily, health and food tourism. The Tesco Theaire Kitchen focused on cooking on a budget using local ingredients, the Tourism Nl Kitchen showcased some of Northern Ireland's lop food and drink experi¢nces, and the Moy Park Kitchen focused on all that is chicken. The Balmordl Show Schools Trail attracted over three thousand Children from primary and special needs schools who enjoyed an inleraclive and educational day out. The Schools Trail programme aims lo help school children better understand food and agriculture within Northern Ireland in an exciting and dynamic environment. The trade exhibit layouts were reviscd and a total of 520 trade exhibitors sUPPOrted the Show, including 30 new trade exhibitors and many long-standing trade exhibitors. The Society is grateful for this vital support. The Show's success is also dependent on the continued support of the Show sponsors. The efforts of our prin¢ipal sponsor Ulster Bank and our platinum sponsors, ABP, Marks & Spencers, SPAR and Tescos, are particularly significant during this challenging period in the Show's history. As mentioned previously, sections of the Show were live-streamed over the four days, with approximately 37.000 views. M05t of the viewers were from the UK and Ireland. with further viewers from the USA, India, Australia, Germany, Spain, Canada and New Zealand. Overall attendance was in line with projections for the eneapsulated event. which complied with the COVID-19 Risk Assessment. Page 7
ROYAL ULSTER AGRICULTURAL SOCIETY REPORT OF THE COUNCIL FOR THE YEAR ENDED 31ST OCTOBER 2022 FINANCIAL REVIEW The Consolidated Statement of Financial Activities on page 14 details a net income of £424.885 (2021 loss: £925,695). Review of performAncÈ The performance of the Socicty and ils subsidiaries during the year is discussed in the Annual Report. The following paragraphs indicatc where a detailed analysis of the results can be found in the financial statements. Income generation Tlie Consolidated Statement of Financial Activities provides a detailed analysis of the Society's income during the year. Resources expended The supporting notes to the Consolidated Statement of Financial Activities disclos¢ in detail how the Society's resources have been expended in the year. Expenditure is in line with budget and reflects the rationale given in the paragraph on plans for future periods below. Reserves Council, through the Finance Committee, reviews the reserves policy of the Society on an annual basis. The Society's policy 15 to retain a level of free reserves that malch the Society's requirements boili al the ¢urrent time and for the foreseeable future. Free reserves are those funds not lied up in fixed asset5 or restricted funds. The unre51ricled liquid reserves as al 3 Isl October 2022 are £4,977,995 (2021.. £8,366,901 }, representing ten month5 (2021: thirteen months) of unrcslriclcd aclivity. In calculating reserves, Council has excluded from the total funds, fixed assets of £25,232,682 (2021.. £21.418.931) and reslricted funds of £15.572 (2021.. £15,532). The Finance Committee considcrs that the Society requires free reserves equivalent lo twelve month5 of unre51ri¢lcd activitie5 to enable the So¢iety lo develop its agricultural shows,. to ensure that they continue to meet the needs of the agricultural sector and lo expand the educational elements ofthc shows to audiences throughout Ireland and continue the dcvelopment of the Eikon Exhibition Ccntre at Balmoral Park as an international events venue. FUIYDS HELD AS CUSTODIAN ON BEHALF OF OTHERS There are no funds held as custodian tNslee on behalf of others. PLANS FOR FUTURE PEIUODS The strategic objective of Council is to progress the Society's development opportunilies to ensure that the enabling finances required are achieved in the medium lem, thcreby enabling the Society to enhance it5 charitable activities within that lime5cale. In 2012, the Society's membership approved the proposal lo develop the King's Hall Complex for residential and commercial use and reinvest in a new showground at Balmoral Park, Lisburn. KH Balmoral Estates Limited administers the implementation of Ihc development agreement with Bcnmore Octopus Healthcare Developments for the commercial redevelopment of the King's Hall and the as.sociated lands al the Complex. The intention is that this will provide the Society with significant revenue streams of enabling finance for the foreseeable future. King's Hall Harberton Estates Limited oversee5 the development agreement's execution by the developer through the disposal of 16.25 acrc5 of lands al the Harberton end of the Complex for residential development. The capital funds derived from thi5 agreement are transferred lo the Society. They arc held by the Society to be reinvested in the Eikon Exhibition Centre al Balmoral Park'5 development to facilitate the charitable objectives of the Society. In line with the Society's strategic plan, the Eikon Exhibition Centre is the key component of Balmoral Park's developmenl. The Eikon Hall and Dr E F Logan Hall combine lo create the largest events and exhibition destination in Northern Ireland, with more than 10,600 sqm of inlemal exhibition space. During the reporting period, the Society continued the development of Balmoral Park, and these included extensive drainage, fencing, entrance improvements, and staff facilities. The Finance Committee regularly consider detailed financial projections in relation to each element of the overall strategic plan and ensure that the Balmoral Park's development plans are phased to ensure the on-going viability and growth of th¢ Society. Page 8
ROYAL ULSTER AGRICULTURAL SOCIETY REPORT OF THE COUNCIL FOR THE YEAR ENDED 31ST OCTOBER 2022 IMPACT OF THE COST OF LIVING CRISIS During the year and subsequent to the reporting period, the Cost of living crisis has affected the So¢iely in tenns of increasing costs, particularly fuel, light and healing, and contracted labour costs. Furthcrmore, the spiralling cost of construction will impact the viability of future capital projects. Looking forward, il is envisaged that the running costs of the Society will continue lo rise. In November, the Office for Budget Responsibility eslimaled that inflation is sel to peak al a 40-year high of I l % in the first quarter of the Society's next financial year. This will significantly impact the running costs for the Society going forward. Regarding rising energy prices. the Society notes that electricity priccs i n the UK rose by 65.4% and gas prices by 128.90/. in the year and are expected to remain high. The Society has revised its budgets to reflect thcse increasing cosls. The Soci¢ly intends lo utilise capital funds to install cnergy-saving components and systems, ensure that energy is used prudcntly and loads are managed efficiently, particularly during Balmoral Show and other large-scale events. During the financial y¢ar, the Society has moved its supplier to Northern Ireland's only supplier of l OOO/fj locally-generaled renewable electricity. Fuel priccs incurred by the Society reached record highs in 2022. Although the price trend is in decline, if the UK government decides to raisc fuel duty in spring 2023, this will compound the diffi¢uliies facing the Society as a result of the HMRC re¢lassificalion on the Ltse of rcd diesel. As part of the Society's strategy to reduce it5 carbon footprint, il intends to appraise renewable energy and energy efficiency projects at the Venue. The Society ha5 a professional team of employees with .8kill and experience bases that are not readily replicated within the Province. The Socieiy is aware of the need to retain its staff complement and deliver a succession plan. The Socieiy uplifted the November 2023 pay award significantly, albeit below the prevailing inflation rate. this was affordable going forward due to a rcdu¢tion in the overall staffing number. Due to the nature of the Society's aclivilies, the Socieiy is dependent on the supply of conlracl¢d labour teams. With the National Living Wage set to rise by 9.70/0 from I sl April 2023, this will signifieanily incrcase the ¢osts of event services, including Security, first aid, holtsekeeping and manual labour. The Society will ensure that contractors are managed effectively and service contracts are tendered on a cyclical basis. Thc Office for Budgetary Responsibility predicts rising prices will erode real wages and reduce living standards by 70 /0 over the next two financial years. This will significantly impact Ihe disposable income of individuals and, consequently, make generaiing charitable income Ihrough Show admissions and livestock entries more challenging. The challenge for the Society is to ensure that the Cosls of attending events, including the Balmoral Show, represent value for money from the allendees, perspective while ensuring full cosi coverage. From a commercial perspective, the rcduction of disposable income may impact the viability of the events contracted by King's Hall Exhibition & Conference Centre Limited. Through the Finance Committee, the Council monitors this situation and associated risks lo the Society and the Group. The Society plans lo deliver a full schedule of agricultural events for the next financial year and beyond. Prudent financial and operational plans for these Society events are reviewed regularly with the ability to flex budgets and revise operational activities lo ensure that the Society delivers ils future events programme. However, Council considers that in the short lo medium term, and based on the infom)alion available, the Society will continue to operate as a viable going concern. Through ils strategic planning and pnjdenl management, the Society has accumulated unrestricted reserves at a level that demonslratcs the Society's ability lo continue as a going Concern in the medium lertn. The Society, through its staff, has devised adaptable event platfom]s and formals that will allow the Society to deliver ils charitable objectives safely, effectively and efficiently. The Society has three diverse subsidiaries that operate within the events, Commercial real eslale and residential development sectors. The diverse nature of these sectors provides a spread of the risk in generating enabling finance for the Society. Furthermore, all subsidiaries hav¢ progrdmmed activitie5 in futurc periods. The Society has invested in world_class faciliti¢5 that are flexible in structure and suitable for wide range of future activities. The Society has sufficient liquid capital funds to invest in modifying assets for future uses should this be determined as necessary. Council is confident that with the resources it has in place and the efforts of its staff, committees, members, exhibitors and other slakcholders. the organisation will continue its beneficial work in line with its charitable objective5. Page 9
ROYAL ULSTER AGIUCULTURAL SOCIETY REPORT OF THE COUNCIL FOR THE YEAR ENDED 31ST OCTOBER 2022 STATEMENT OF COUNCIL'S RESPONSIBILITIES The Council is responsible for preparing the Annual Report and the financial statcments in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in Northern Ireland requires the Trustee to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Society and the Group and of the incoming resources and application of resources of the group for that period. In pr¢paring these financial statements, the Trustee is required to.. select suitable accounting policies and then apply them consistently. observe the mcihods and principles in the Charilies SORP 2019 (FRS 102). make judgments and estimates that are rcasonable and prudent. slate whether applicable accoltnling standards, comprising FRS 102. have been followed, subject to any material departures disclosed and explained in the financial slatemenls,. and prepare the financial slalemenls on the going concern basis unl¢s5 il is inappropriate to presume that th¢ Society will continue in business. The Council are responsible for keeping proper accounting records that disclose wilh reasonable accuracy al any time the financial position of the Society and cnable them lo ensure that the financial slatemenls comply with the Charities Act (Northcrn Ireland) 2008 (as amended by the Chariiies Act (Northern Ireland) 2022), the Charities (Accounts and Reports) Regulations (Northem Ireland) 2015. They are also respon5iblc for safeguarding the as5els of the Society and the Group and hence for laking reasonable steps for the prevention and detection of fraud and oihcr irregularities. STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS Each of the Council m¢mbers confirms that, so far as they are aware, there is no rclevant audit information of which the auditors are unaware. Each Council member has taken all the slep% that they ought lo have taken as a Council member in order lo make themselves aware of any relcvant audit information and to establish that the auditors are aware of that inforrnalion. AUDITORS The auditor,s, Baker Tilly Mooney Moore, have indicated their willingness lo continue in office, and a resolution conc¢rning their re-appointment will be proposed at the Annual General Meeting. BY ORDER OF THE COUNCIL: Jmartin Chaimian of the Finance Committee Date.. 101.01129.2&...... Page 10
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF ROYAL ULSTER AGRICULTURAL SOCIETY Opinion Wc have audited the financial statements of the Royal U15ter Agricultural Society (the 'parent charity) and ils subsidiari¢s (the 'group') for the year ended 31 Oclober 2022 which comprise the Consolidated Statement of Financial Activities, Consolidated Balance Sheet, Society Balance Shttt, Statements of Changes in Funds (Group and Society), Consolidated Cash Flow Statement, Notcs to the Consolidated Cash Flow Statement and Notes lo the Financial Statements, including a summary of significant accounting polici¢s. The financial reporting framework that has been applied in th¢ir preparation is applicable law and United Kingdom Accounling 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 thc financial slatemenls: give a Irlte and fair view of thc state of the group's and parent charity's affairs as at 31 st October 2022, and of the group's total incoming resources and expenditure of resources for the year then ended,. have been properly prepared in a¢¢ordan¢c with United Kingdom Generally Accepted Accounting Practice. and have been prepared in accordance wilh the requirements of the Charities A¢1 (Northern Ireland) 2008 (&8 amended by the Charities Act (Northern Ireland) 2022). Basis for oplnlon We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilitie5 under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independcnl of the group and parent charity in accordance with the ethical requirements that are relevant lo our audit of the financial statements in the UK, including the FRC'S Ethical Standard. and wc have fulfilled our other ethical responsibililics in accordance with Ihesc requirements. We believe that the audit evidcnce we have obtained is sufficient and appropriate to provide a basis for our opinion. Concluslon re8Arding going concern In auditing the financial stalem¢nts, we have concluded that the trustec's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performcd, we have not identified any material uncertaintlC5 relating lo events or conditions that, individually or collectively, may cast significant doubt on the group and parent charity's ability to continue as a going concem for a period of al least twelve months from when the financial slatcmenls are auihorised for issue. Our responsibilities and the responsibilities of Ihc trustee with respect to going concern are described in the relevant sections of this report. Other RnformAtlon The trustees are responsible for the other information. The other information comprises the information included in the trustee's annual report, other than the financial slalements and our Auditor's report Ihereon. Our opinion on the financial statements does not cover the other information and, except to the cxtenl otherwise explicitly staled in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial 5talemenls, our re8ponsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with th¢ financial statements or our knowledge obtaincd in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstalemenls, we are required to determine whether there is a material misstatement in the financial Statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatcmenl of this other information, we are required to report that fact. We have nothing to report in this regard. Pagell
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF ROYAL ULSTER AGRICULTURAL SOCILTY OpAnion on other m4tters prescribed by the Ch4ritfies Act (Northern Ireland) 2008 (as amended by the Charities Act (Northern Ireland) 2022) In our opinion, based on the work undertaken in the course of the audit.. the infornlation given in the Report of the Council for th¢ financial year for which the financial statements are prepared is consistent with the financial slatemen15' and the Report of the Council ha5 been prepared in accordance with applicable legal requirements. Matters on whlch we are required to report by exe¢ption In the light of the knowledge and understanding of the group and parent charity and ils environment obtained in the ourse of the audit, we have not identified material misstatemenis in Ihe Report of the Council. We have nothing to report in respect of the following mallers in relation to which the Charities (Accounts and Reports) Regulations (Northern Ireland) 2015 require us lo report lo you if, in our opinion: adequate accounting records have not been kept. or returns adequate for our audit have not been received from branchcs not visited by us.. or the financial slalemcnls are not in agreement with the accounting records and returns,. or certain disclosurcs of tnistee s remuneration spccificd by law are not made. or we have not received all the information and explanations we require for our audit: or Respon$lbilitie$ of trustees As explained more fully in the trustee's responsibilities statement set out on page 10 the trustee are responsible for the preparation of financial 51alemenls which give a true and fair view, and for such internal control as the truslces dclerminc is necessary lo enable the preparation of financial statements that are free from material misstalemenl, whether due to fraud or ern)r. In preparing the financial slatemenls, the trnslees are responsible for assessing the 8n)up'5 and parent charity's ability to continue as a going concern, disclosing. as applicable, mallers related to going concern and using the going concern basis of accounting unless the Iruslees either intend lo liquidate Ihc group or the parent charity or to cease operation5, or have no realistic aliemative but lo do 50, Audltors, re8ponsiblllties for the audlt of the finAncAAI statements We have been appointed as Auditor under paragraph 6 of schedule 6 of the Charities Act (Northern Ireland) 2008 (as amended by the Charities Act (North¢rn Ireland) 2022) and report in accordance wilh regulations made under section 66 of that Act. Our objectives are lo obtain rcasonable assurance about whether the financial statements as a whole are free from material misslalemenl, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assuran¢e 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 exi%ls. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected lo 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 exlenl to which our procedures are capable of detecting irregularities, including fraud is detailed below: We considered Ihe opportunities and incentives ihat may exist within the organisation for fraud and identified the greatest potential for fraud in relation lo revenue recognition. In common with all audits under ISAS (UK), we are also required to perfom spccifi¢ procedures lo respond lo the risk of management override. Page 12
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF ROYAL ULSTER AGRICULTUIL4L SOCIETY Audltor5' responsibilitie$ for the audit of the fmAnciAI yttements - Continued We also obtained an understanding of the legal and regulatory frameworks that th¢ group and parent 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 Ihc financial statemcnts. The kcy laws and regulation5 we considered in this context included the UK Companies A¢t. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statemeiils bul compliance with which may be fundamental to the group and parent charity's ability to operate or lo avoid a material penalty. Our procedures lo respond to risks identified included the following.. reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and r¢gulalions dcscribed as having a direct effect on the financial slalements,. enquiring of management and cxternal legal counsel conceming actual and potential liligalion and Claims. perfom)ing analytical procedures to identify any unusual or unexpccled relationships that may indicate risks of malerial misstatement due lo fraud. rcading minutes of meetings from those charged with governancc,. in addressing the risk of fraud through management ovcrride of controls, lesling the appropriateness of joumal entries and other adjustments. assc55ing whether the judgements made in making accounting estimates are indicative of a potential bias,. and evaluating the business rationale of any significant transactions that are unusual or outside the nom]al course of busin¢ss. We also communi¢aled relevant identified laws and regulations and potential fraud risks lo all engagement team members and r¢mained alert lo any indications of fraud or noncompliancc with laws and regulations throughout the audit. Because of the inlierent limitations of an audit, there is a risk that we will not delect all irregularities, including th05c leading lo a material misstatement in the financial slatemcnts or non-compliance with regulation. This risk increases the more that compliance with a law or regulation 15 removed from events and transactions reflected in the financial statements, as we will be Ic55 likely to become aware of in.8lances of non-compliance. The risk is also greater regarding irregularit1¢5 occurring due to fraud rather than error, as fraud involves intentional concealment, forgery Collusion, omission or misreprcsenlation, A further description of our responsibilities for the audit of the financial slalements is located on the Financial Reporting Council's website at www.frc.or8.uklaudilorsresponsibililies. This description forms part ot our Auditor's report. Use of our report This report is made solely lo the charity's trustee, as a body* in accordance with Part 4 of the Charities {Ac¢ounls and Reports) Regulation5 (Northern Ireland) 2015. Our audit work has been undertaken so that we might slate to the charity's trustees those mallers we are required to slate lo them in an auditor's report and for no other putpose. To the fullest extent permitted by law, we do not accept or assume responsibility lo anyone other than thc chariiy and the Charity's trustee as a body, for our audit work. for this report, or for the opinions we have formed. Joanne Small (Senior Siatulory Auditor) For and behalf of Baker Tilly Mooney Moore Statutory Auditors 17 Clarendon Road Clarendon Dock Belfast BTI 3BG Date.. Page 13
ROYAL ULSTER AGRICULTUIL4L SOCIETY CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST OCTOBER 2022 Unrestricted funds Restrleted funds Total 31.10.22 Total 31.10.21 Notes INCOME Voluniary income Activitics for generating funds Income from charitable activities 61,533 3,503,232 2,785,957 61,533 77 3,503,309 2,785,9S7 53,278 1,126,756 1,612,610 TOTAL INCOME 6J50,722 77 6,350,799 2,792.644 EXPENDITURE Costs of generating funds Charitable activities Other expenditure 2,461,845 2,893,019 432,920 2,461,845 37 2,893,056 432,920 820,840 2,347,468 550,031 TOTAL EXPENDITURE 5,787,784 37 5,787,821 3 718,339 NET INCOME 562,938 40 562,978 925,695 Net gainsl(losses) on Investments (138,093) (138,093) NET INCOME 424,845 40 424,885 (925,695) Total funds brought forward 29,785,832 15,532 29,801,364 30,727,059 Total funds e*rrled forward 30,210,677 15,572 30,226,249 29,801,364 The notes forni art of these financial statements Page 14
ROYAL ULSTER AGRICULTUIL4L SOCIETY CONSOLIDATED BALANCE SHEET FOR THE YEAIi ENDED 31ST OCTOBER 2022 31.10.22 31.10.21 FIXED ASSETS Intangible assets Tangible assets Investments Notes io li 13 615 19,345,953 5,886,114 25,232,682 862 21,418,069 CURRENT ASSETS Stocks Debtors Cash al bank and in hand 21,418,931 38,778 1,018,100 4,832,144 31.608 590,158 9,050.213 14 S,889,022 9,671,979 CREDITORS Amounts falling due within onc year NET CURRENT ASSETS 15 (864,840) (1,260.548) 5,024,182 8,41 I,431 TOTAL ASSETS LESS CURRENT LIABILITIES CREDITORS Amounts falling due after more than one year NET ASSETS 30,256,864 29,830,362 16 (30,615) (28,998) 30 226,249 29,801,364 FUNDS Unreslricled funds Restricted funds 18 19 30,210,677 15,572 29,785,832 15,532 TOTAL FUNDS 30 226,249 29 801,364 The financial statements were authorised for issue by the Council on .Jolol.1201S... and signed on its behalf by: J Martin Chairman of the Finance Commitle¢ The notes form art of these financial statements Page 15
ROYAL ULSTER AGRICULTURAL SOCIETY SOCIETY BALANCE SHEET FOR THE YEAR EIYDED 31ST OCTOBER 2022 30.10.22 30.10.21 Note5 FIXED ASSETS Intangiblc assets Tangiblc assets Investtnenls in group subsidiaries Investments io li 12 13 615 9,817,510 23,850,000 5886 114 39,554,239 862 10,126,669 23,850,000 33,977,531 CURRENT ASSETS Stocks Debtors Cash al bank and in hand 20,836 892.130 91,371 20,213 690,120 3,108,611 14 1,004J37 3,818,944 CREDITORS Amounts falling duc within one year Is (10,301,712) (7,966,113) NET CURRENT LIABILITIES (9,297,375) (4,147,169} TOTAL ASSETS LESS CURRENT LIABILITIES 30,256,864 29,830,362 CREDITORS Amounts falling due after more than one year 16 (30,615) (28,998) NET ASSETS 30,226,249 29,801,364 FUNDS Unrestricted funds Restricted funds 18 19 30,210,677 15,572 29,785,832 15,532 TOTAL FUNDS 30 226 249 29,801,364 The financial statements were auihorised for issue by the Council on ..101ti2.120.18... and signed on its behalf by: J Martin Chairman of the Finance Committee The notes form art of these financial stat¢ments Page 16
ROYAL ULSTER AGIUCULTURAL SOCIETY STATEMENTS OF CHANGES IN FUNDS FOR THE YEAR ENDED 31ST OCTOBER 2022 GROUP Unrestricted funds Restricted funds Total funds Balance at 1st November 2020 30,711,554 15,505 30,727,059 Deficit from financial activities 925 722 27 925 695 Balance at 31st October 2021 29,785,832 15,532 29,801,364 Surplus from financial activities 424 845 40 424 885 Balance at 31st October 2022 30 210 677 30 226 249 SOCIETY Unrestricted funds Restrlcted funds Total funds Balance at 1st November 2020 30,711,554 15,505 30,727,059 Deficit from financial activities 925 722 27 925 695 Balanee at 31st October 2021 29,785,832 15,532 29,801,364 Surplus from financial activities 424 845 40 424 885 BAIAnce At 31st October 2022 30 210 677 15 572 JO 220 249 Page 17
ROYAL ULSTER AGRICULTURAL SOCIETY CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST OCTOBER 2022 31.10.22 31.10.21 Notes Cash floivs from o eratin tivitie5 Cash generated from operating activities {558079) (121,211) Net cash from operating activities 558 879 121211 $h flows from Investln actlvl Purchase of tangible fixed assets Proceeds from the sale of development of land Purchase of investments Gains and losses on Investing activities (189,556) 2,554,573 (5,886,114) (138,093) (286,952) 509.800 Ncl cash from investing activities 3 659 190 222 848 (DecreAse)/lncreA$e In ea8h and cash equivalents Cash and CAsh equlvAlents At beglnnlng of yevdr (4,218,069) 9,050,213 101,637 8,948,576 Cash And CAsh equlvalents at end of year 4 832 144 9 050213 The notes form art of Ihese financial statements Page 18
ROYAL ULSTER AGRICULTURAL SOCIETY NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST OCTOBER 2022 RECONCILIATION OF DEFicrr TO CASH EXPENDED ON OPERATIONS 31.10.22 31,10.21 Nel rnovement in funds Amortisation of intangible fixed assets Depreciation of tangible fixed assets L05s on disposal of tangible fixed assets Gain on disposal of development land Gains/(loss¢s) on Investing activities 424,885 247 498,715 (925,695) 248 434.284 8.124 (85,413) (791,616) 138 093 270J24 {7,170) (427,942) (395,708) (568,452) 14,916 (76,851) 506.540 (In¢rca5e)/Decrease in stocks (Increase)/Decrease in trade and other debtors (DecreaseyIncreas¢ in trade and other crediiors Increase/(Decrease) in deferred income CAsh generated from operatlons 558 879 CASH AND CASH EQUIVALENTS The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts.. Year ended 31st October 2022 31.10.22 1.11.21 Cash in hand Bank deposits 381 4 831763 283 9 049 930 4 832 144 9 050 213 Year ended 31 O¢tober 2021 31.10.21 1.11.20 Cash in hand Bank deposits 283 9 049 930 800 8 947 776 9 050 213 8 948 576 Page 19
ROYAL ULSTER AGRICULTURAL SOCIETY IYOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2022 GENERAL INFORMATION The Royal Ulster Agricultural Society'5 objective 15 the promotion of agriculturc in Northem Ireland by holding agri¢uliural shows, and by giving agricultural instruction by exhibition5, lectures and by oiher such means as may from time to lime be found expcdient and in accordance with the provisions of the Scheme. The registered office can be found on th¢ Legal and Adminislralive Information page. The presentation currency of the financial statements is the Pound Sterling (£) ACCOUNTING POLlCJtES Basis of preparAtlon I'he charity constitutes a public benefit enlily as defined by FRS 102. Thc financial Statements have been prepared in ac¢ordan¢e with Accounting and Reporting by Charilies.. Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective I st January 2019) - (Charities SORP (FRS 102)). the Financial Reporting Standard applicable in thc UK and Republic of Ireland and the Charities Act (Northern Ireland) 2008 (as amended by the Charities Act (Northem Ireland) 2022). I'he financial stalemcnls are prepared on a going Loncern basis under the historical cost convention, modified to include certain items at fair value. Golng concern The Society's forecasts and projections, taking account of reasonable possible changes in performance and the potential impact of the on-going cost of living crisis, show that the organisation will be able to operate within the level of ils current cash and investment resources. The Council have a reasonable expectation that the organisation has adequate re,%ources lo Continue in operational existence for a period of at least 12 months from the dalc of approval of the financial statements. Thus, they continue to adopt the going concern basis of accounting in preparing th¢ annual financial Slatements. Flnlnclal Reportlng StAndard 102 - reduced di$e108ure exemptions The parent charity satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following disclosurc exemptions available under FRS 102.. a) No cash flow statement has been presented for the parent charity. b) Disclosures in rc5pecl of financial instruments have not been presented. ) No disc105ure has been given for the aggregate remuneration of key management personnel. Ba815 of consolidatlon The consolidated financial statements present the results of the Royal Ulster Agricultural Society and its subsidiaries as if they fomi¢d a single eniily. Intercompany transaction5 and balances between group companies are therefore eliminated in full. A separate statement of financial activities for the Society itself is not presented as the Society has taken advantage of Ihc available exemptions. Speclflc Judgements and esdmates In preparing these financial statements Ihe trustees have not had lo make any significant judgements or e51imates. Income All income 15 included in the statement of financial activities when the group is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular ategories of income.. Gifts and donations are included in full in the statement of financial activities when reccivable. Legacies are recognised when received or when their amount is capable of measurement. Page 20
ROYAL ULSTER AGRICULTURAL SOCIETY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2022 ACCOUIYTING POLICIES - continued Income- contlnued Annual subscriptions are recognised in full in the Statement of Financial Activities upon receipt. Life mcmbers, fees are recorded as deferred income and released to the Statement of Financial A¢tivities al a rate equivalent lo annual membership. Commercial income represents the invoiced value of services supplied during the year. excluding value added lax and is net of sales returns, trade discounts and rebate5. Revenue is recognised when, and lo the extent that. Ihc group or parent charity obtains the right to consideration in exchang¢ for ils performance. Expendltur¢ Resources expended represent all costs incurred in the Course of the group's activilics and are accounted for on an accruals basis. Where costs cannot be directly attributed to particular heading5, they have been allocated based on activity. Charitable expenditure comprises costs incurred by the Society in the delivery of ils aclivitics and services for its beneficiaries. It includes both costs that can be al located directly lo such aclivilies and those costs of an indirect nature necessary to support them. Governance costs in¢lude those incurred in the governance of the group's assets and are associated with constilulional, slatulory and strategic requiremenls. Cost of generating funds include expenditure relating to members, subscriptions and agriculiural/equc8trian rental tncome which can be allocated directly lo quch activities and those costs of an indirect naiure necessary lo support them. Defined contribution pension sch¢mes are operated on behalf of certain staff members. Contributions are Charged as incurred. Intinglble Asset$ Intangible assets are stated at historic cost less accumulated depreciation. Intangible assets are included al purchase cosl, together with any incidental costs of acquisition. Depreciation is calculated to write off the cost of intangible assets, less estimalcd residual values. on a slraighi-line basis over the expected useful economic live5 of the assets concerned, The principal annual rates used are as follows.. Trademarks Where the recoverable amount of an intangible asset is found lo be below its net book value, the asset is written down lo the recoverable amount, and the loss on impairnienl is rc¢ognised in the Statement of Financial Activities. Tangible fixed asset5 Property, plant and equipment are stated at Cost less accumulated depreciation and accumulated impairnlent losses. Such cost include5 Costs directly attributable to making the asset capable of operating as intend¢d. Depreciation is provided at the following annual rates in order to write off each asset over its estimate useful life.. Showgrounds Land h¢ld for development Buildings Plant, vehi¢les and equipment Nil 210-25 /. 100/0-50 / Page21
ROYAL ULSTER AGRICULTURAL SOCIETY NOTES TO THE CONSOLIDATED FINAIYCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2022 ACCOUNTING POLICIES- rontlnued Investments InvestTnents in subsidiaries are measured at cost less accumulated impaimenl. Fixed Asset investments are stated at market value at the balance sheet dale. The Statement of Financial Activilics includes the nel gains and losses arising on revaluations and disposals throughout the year. All gains and losses are taken to The Statement of Financial Activities as thcy arise. Realised gains and losses on inveslmcnts are calculated as the differencc between sales proceeds and their opening carrying value or their purchase value if acquired subsequcnt to the first date of the financial year. Unrealised gains and losses are calculated as the differencc between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in The Statement of Financial Aclivilies. Stock8 StoLks are valued at the lower of cost and net realisable value, after making duc allowance for obsolete and slow-moving items. Flnanclal Instruments All financial instruments of the group and parent charity are Considered to meet the definition of basic financial inslrumenls. - Short-lerm debtors and creditors Debtors and creditors with no slated interest rale and arc receivable or payable on demand are recognised al transaction price, and subject to annual impairmcnl reviews. Any losses arising on impaimient are rccognised in the profil and loss a¢couThl. Cash and cajh equivalenls Cash and cash equivalents Comprise cash at bank and in hand. TaxY4tion There is no liability to taxation due to the Society's charitable status. Forelgn currencies Transactions denominated in foreign currencies are translated at the exchange rate at the dal¢ of Iransaclion. Monetary assets and liabilities denominated in foreign currencies are translated at the rale of exchange ruling at the balance sheet date. The resulting gain or loss is recorded in the statement of financial activities. Fund YdCCOUNtlng The group has various types of funds for which it is responsible and which require separate disclosure. Definitions of the various types of funds are as follows.. - ReslricledfudS Restricted fund5 are to be used for specified purposes as laid down by the donor. Expenditure which meets these criteria is identified lo the fund, together wilh a fair allocation of overheads and support costs. Unrestricledfunds Unrestri¢ted funds are donations and other incoming resources received or generated which are expendable at the discretion of the Society in furtherance of its objective. Page 22
ROYAL ULSTER AGRICULTURAL SOCIETY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2022 INCOME Notes Unrestricted Restrlcted Total Funds Funds Funds 30.10.22 Total Funds 31.10.21 Voluntary Ineome Members, subscriptions and donations 61,533 61,533 53,278 61,533 61,533 53,278 A¢tivfitles for gener*ting funds Commercial income Other income 3,457,496 45,736 3,457,496 45,813 925,151 201,605 77 Income from ¢h4rlt4ble actAvltl¢$ Balmoral Show income Winter Fair incom¢ Beef and Lamb income 3 503 232 77 3 503 309 1 126 756 2,498,215 259,077 28,665 2 785 957 2,498,215 259,077 28,66S 2 785 957 1,594,176 2,599 15,835 1612 610 6 350 722 77 6 350 799 2 792 644 EXPENDITURE Note8 Unre$trlcted Restrlcted Total Funds Total Funds Funds Funds 30.10.22 31.10.21 Cost of generatlng funds Members, subscriptions Commcrcial activity 59,195 2,402,650 2,461,845 59,195 2 402,650 2,461,845 47,563 773 277 820,840 Charltable actlvitles Agricultural shows 2 893,019 37 2 893 056 2 347,468 Other expendlture Centraliscd costs Investment expenditure 2 893 019 37 2 893 056 423,023 9,897 423,023 9,897 550,031 432 920 432 920 550 031 5 787 784 37 5 787 821 39 Page 23
ROYAL ULSTER AGRICULTURAL SOCIETY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR EIYDED 31ST OCTOBER 2022 COMMERCIAL INCOME AND EXPENDITURE 31.10.22 31.10.21 Commercial income Other income 3,503,232 925,151 50.000 975 151 3 503 232 Support costs Salaries and wages, labour and security Direct expenses Office costs Establishment expenses Development costs (267,493) (1,973,663) {28 J34) (133,160) (132,159) (539,923) (18,652) (82,543) 2 402 650 773 277 Nel income 1054 846 201874 The income and expenditure lolals above Incorpote the profit and loss a¢¢ounl of the Society's trading subsidiaries The King's Hall Exhibition & Conference Ccnlre Limited, King's Hall Harbcrton Estatcs Limited and KH Balmoral Estsles Limited. The financi year-end for all companies is 3 1st October 2022. EXPENDITURE ON CHARITABLE ACTIVITIES Notes Unre$trieted Restricted TotAI Funds Funds Fund8 30.10.22 Total Funds 31.10.21 Dlrect costs Prizes to exhibitors Ground preparation Exhibition stand preparation Judgcs, expenses Catering cosls Advertising, promotion and printing Attractions and associated costs Cost of car parking facilities Showground cleaning Fees for servi¢cs Miscellaneous 164,129 762,114 53,990 32,901 54,306 140,123 69,041 155,407 145,804 341,845 37 164,166 762,114 53,990 32,901 54J06 140,123 69,041 155,407 145,804 341045 86,083 573,878 18,583 20,041 31,761 123,383 80,368 102,162 121,567 323,277 594 1,481,697 865,771 1,923,129 969,890 37 1,923,166 909,890 Support costs relating to agricultural shows Total expenditure r¢latlng to agricultural shows 2,893,019 37 2,893,056 2,347,468 Page 24
ROYAL ULSTER AGIUCULTUIL4L SOCIETY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2022 TOTAL EXPENDITURE Employme Depreciation Establishjnent nt costs Other cost5 TotAI 31.10.22 Total 31.10.21 Commer¢ial activity Agricultural shows Other charitable activity support costs Cenlraliscd costs Investment Expenditure 267,493 133,160 2,001,997 2,402,650 773,277 379,471 359,253 153,595 2,000,737 2,893,056 2,347,468 17,533 11,166 30,496 59,195 47,563 176,180 139,462 69,883 37,498 423,023 550.031 9,897 9,897 840,677 498,715 367,804 4,080,625 $,787,821 3,718,339 EMPLOYEE COSTS StAff co$t8 31.10.22 31.10.21 Wages and salaries Social sccurity costs Other pcnsion costs 682,301 71a61 71,456 661,602 52,705 77,901 Total payroll costs 825 118 792 208 Contract labour and other staff costs 15,559 18,979 Total employment costs 840 677 811 187 The average number of employees during the year were: 31.10.22 31.10.21 Monthly paid Weekly paid 14 16 19 21 The number of employees who received total employee benefits (excluding employer pension costs) of more than £60,000 is as follows.. 31.10.22 31.10.21 £60,001- £70,000 £70,001- £80,000 £80.001- £90.000 £90.001- £100,000 £ 100,000 - £I10,O(M) Page 25
ROYAL ULSTER AGRICULTURAL SOCIETY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2022 EMPLOYEE COSTS (continued) Employer pension contributions totalling £226 (2021: £6,790) were made during the year on behalf of the higher paid employee. Cornpcnsation paid to key management personnel in the year to 31 st October 2022 was £ 81,932 (2021.. £111.650). Thc Council members received £Nil remuneration during the year (2021- £Nil). Travel expenses totalling £1.683 (2021.. £335) were reimburscd lo 4 (2021.. 2) Council members during the ycar. Council members, indemnity insurance has been purchased by the Society at a cost of £6,097 {2021.. £4,495). NET INCOME FOR THE YEAR iY¢t In¢ome As stAted After charyin81{¢redltlng): 31.10.22 31.10.21 rees payable to the group's Auditor for the audit of the financial statements rees payable lo the group's Auditor for other services Profit on disposal of fixed a5t8 Depreciation - owned assets 21,000 2,000 17,500 2,000 77,289 434,284 498 715 Total net expenditure before transfers and unrealised gains was a surplus of £424,885 (2021: deficit of £925,695). No profits were retained in the subsidiari. The operating sutplu5 for unreslricled funds for the year was £424,845 (2021: Deficit of £925,722). The movement in the restricted funds was a net income of £40 (2021.. income of £27). io. INTANGIBLE ASSETS Group and So¢l¢ty Trademarks COST Ai 3 1st October 2021 and 31st October 2022 AMORTISATION Al 31 st October 2021 Charge for Year 1,013 247 At 31st October 2022 NET BOOK VALUE At 31$t October 2022 015 At 31 st October 2021 862 Page 26
ROYAL ULSTER AGRICULTURAL SOCIETY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2022 ii. TANGIBLE FIXED ASSETS Group Improvements to land held under lease Land and buildings held for development Buildings Plant, vehicles nd equipment Total COST Ai 31 October 2021 Additions Disposa15 3,722,228 49J16 11,291,400 7,974,498 49,280 1,235,339 90,960 24,223,465 1¥9,556 (1,762,957) (1,762,957) At 31 October 2022 3 771544 9 528 443 22 650 064 DEPRECIATION Ai 31 October 2021 Charge for Year Disposals 746,101 132,715 I J09,590 266,302 749,705 99,698 2,805,396 498,715 At 31 October 2022 878 816 1575 892 849 403 3304 111 NET BOOK VALUE At 31 October 2022 2 892 728 9 528 443 6 447 886 476 896 19 345 953 At 31 October 2021 2 976 127 11291400 6 664 908 485 634 21418 069 Analysis of cost or vAluatlon Cost Valuation 3,771,544 1,480,355 8,048,088 8,023,778 lJ26,299 14,601,976 8,048,088 9 528 443 8 023 778 Certain buildings were revalued in October 2013 on the basis of valuation for existing use by BTW Shiells. The showground5 were revalued by Simon Bricn in October 2015 on the basis of open market value. The remaining buildings were revalued in October 2017 on the basis of valuation for existing use by Colliers International. If land and buildings had not been revalued, they would have been included at the following amounts. 31.10.22 31.10.21 Net book value 6,905,528 7 640 168 Page 27
ROYAL ULSTER AGRICULTUIL4L SOCIETY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2022 ii. TANGIBLE FIXED ASSETS (continued) Soclety Improvements to lond held under li¢¢n¢¢ Bulldlngs Pl4n¢ vehicles and equipment Total COST At 31 October 2021 Additions 3,722,228 49J16 7,974,498 49,280 1,235J39 90,960 12,932,065 189,556 Disposals At 31 Oclobcr 2022 3 771544 8 023 778 1326 299 13 121621 DEPRECIATION Al 31 Oclobcr 2021 Charge for Year 746,101 132,715 I J09,590 266J02 749,705 99,698 2,805,396 498,715 Eliminated on Disposal Ai 31 October 2022 878 816 849 403 1575892 04111 NET BOOK VALUE At 31 October 2022 2 892 728 6 447 886 470 896 9 817 510 At 31 October 2021 2 976 127 6 664 908 485 634 10 126669 12. FIXED ASSET INVESTMENTS Society ShY4re$ In group undertaklngs COST At 31 st October 2021 and 3 1st October 2022 23 850 000 NET BOOK VALUE At 31st October 2022 23 850 000 At 31 st October 202 I 23 850 000 Page 28
ROYAL ULSTER AGRICULTURAL SOCIETY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENrs FOR THE YEAR ENDED 31ST OCTOBER 2022 12. FIXED ASSET INVESTMENTS (continued) The Society's investments at the Balance Sheet dale in the shar¢ capital of companies comprise the following subsidiaries: The Klng's Hall Exhibition and Conferen¢e Centre Limlted Company number.. N1033 I40 Registered offi¢e: RUAS Office, Balmoral Park, Halftown Road, Lisbum, BT27 5RD Nature of business: Provision of event facilities /& holding 100.00 Class of shares: Ordinary Klng's Hall Harberton Estates Limited Company number.. N1627613 Registered office: RUAS Office, Balmoral Park, Halftown Road, Lisburn, BT27 5RD Nature of business: Management of land held for development /0 holding 100.00 Class of shares: Ordinary KH Balmoral Estates Llmlted Company numbcr.. N1648449 Registered offi¢c: RUAS Office, Balmoral Park, Halftown Road, Lisbum, BT27 5RD Nature of business.. Management of land held for development /0 holding loo.00 Class of shares.. Ordinary The Council believe that the carying values of the investments are supported by the underlying net assets of each subsidiary. 13. FIXED ASSET INVESTMENTS Value brought forward PurchAses at cost Sxles proeeed$ Ch&nge In market value VAlue carried forwArd Quoted Investments Cash held by investment brokers 5,770,625 322,134 (68,5S2) (138,093) 5,563,980 322,134 6 092 759 138 093 5 886 114 The change in market value of investments during the year comprises all increases and decreases in the market value of investments held at any time during the year, including profits and losses rvdlised on sales of inv¢stmenls during the year. Page 29
ROYAL UISTER AGIUCULTURAL SOCIETY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2022 14. DEBTORS Group Socfiety 31.10.22 3R.10.21 31.10.22 31.10.21 Trade debtors Amounts owed from group undertakings Other debtors Other lax and social security Prepayments 826,905 374.392 2AO,229 587,187 250,794 298.008 93,815 93,814 95,837 26,115 15,637 79,077 117,093 24,224 97J80 1018 100 590 158 892 130 690 120 15. CREDITORS: amounts falllng due wlthln one yewr Group So¢lety 31.10.22 31.10.21 31.10.22 31.10.21 Trade Creditors Amounts owed to group undertakings Other lax and social security Other creditors and accruals Paymcnls received in advance 249,374 633,460 184,766 9,644,328 15,303 111,470 34S,839 621,885 6,791,803 18,070 240,080 294,275 66,033 130,896 418,537 18,070 254,679 354,339 864 840 1260 548 10 301712 7966113 16. DEFERRED INCOME Group And Society Life Member$ Composition Aecount Ai 31 sl October 2021 Receipts in year Interest credited Utilised in year 28,998 7,289 478 {6,150) At 31st October 2022 Page 30
ROYAL ULSTER AGIUCULTURAL SOCIETY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2022 17. ANALYSIS OF NET ASSETS BETWEEN FUNDS Group Unrestrlcted funds Restricted funds Total funds 31.10.22 Intangible fixed assets Investmen15 Tangible fixed assets Net current assets D¢ferrcd income 615 5,886,114 19,345,953 5,008,610 615 5,886,114 19,345,953 5,024,182 15,572 30 210 677 30 226 249 18. UNRESTRICTED FUNDS Group And Soclety GenerAI funds Al 31 sl October 2021 Nel movement in funds 29,785,832 424,84S At 31 st October 2022 30 210 677 19. RESTIUCTED FUNDS The incoine funds of the Society include restricted funds comprising the following unexpendcd balance of donations lo be applied for specifi¢ puose5.. Group and Soclety Movement in funds 1.11.21 Incoming Outgoing 31.10.22 W Fullerton Legacy John Kirkpatrick Legacy 10,000 5,532 120 66 (120) (26) 10,000 5,572 186 146 The Willie Ydnd Elsie Fullerton Bequest Willie and Elsie Fullerton bequesl the sum to be invested and the income used to augment the Society's funds, John Kirkpatrlck Ig4¢Y Donation to thc Society in memory of John Kirkpatrick. The legacy's annual proceeds to be used to provide special prizes in the Children's Ponies Ridden and Working Hunters Section. Page31
ROYAL ULSTER AGRICULTURAL SOCIETY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2022 20. FINANCIAL INSTRUMENTS Group 31.10.22 31.10.21 Fin4nclal A$sets Financial assets that are debt instrumen15 measured at amortised cost 5,659,049 9,424,605 FlnanciAI liablllties Financial liabilities measured at amortised cost 5,659,049 9 424,605 249,374 633,460 249 374 633 460 Financial &ssels measured at amortised cost comprise trade debtors and cash al bank. Financial liabilitie5 measured al amortised cost comprise trade creditors. 21. RELATED PARTY DISCLOSURES The group has taken the exemption contained in FRS 102 Scction 33.IA - "Related Paty Disclosure" not lo disclose any transactions with ils subsidiary undertakings or the asso¢iaied undertakings of any wholly-owned group company on the grounds that the consolidated accounts of the Royal Ulster Agricultyral Society are publicly available. 22. CAPITAL COMMITMENrs Al 31 si October 2022, the Society had entered into a capital commitment which was contracted but not provided for in thes¢ financial statements of £NIL (2021.. £NIL). 23. TAX4TION The Society is a registered charity and as such is entitled lo certain lax exemptions on income and profits from investments and surpluses on any trading activities ¢arried on in furtherancc of the charity's primary objective5, if these profits and surpluses are applied solely for charitablc purposes. 24. ULTIMATE CONTROLLING PARTY The ultimate controlling paty is considered to bc Council of the Royal Ulster Agricultural Society. Page 32