ROYAL ULSTER AGRICULTURAL SOCIETY ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2023 CHARITY NUMBER: 101946
ROYAL ULSTER AGRICULTURAL SOCIETY CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2023 Page Legal and administrative information Report of the Council 3 to 10 Report of the Independent Auditor5 Con$olldated Statement of Flnaneial Activltles 14 Consolldated Balance Sheet Soelety Balance Sheet 16 Slatements of Changes In Funds 17 Consolidated Cash Flow Statement Notes to the Consolidated Cash Flow Statement 19 Notes to the Consolldated Flnaneial Statements 20 to 32
ROYAL ULSTER AGRICULTURAL SOCIETY LEGAL AND ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED 31ST OCTOBER 2023 REGISTERED OFFICE RUAS Office Eikon Exhibition Centre Balmoral Park Halftown Road Lisbum BT27 5RD AUDITORS Baker Tilly Mooney Moore Statutory Auditors 17 Clarendon Road Clarendon Dock Belfast Co Antrim BTI 3BG SOLICITORS Johns Elliott 40 Linenhall Street Belfast BT2 8BA Mills Selig 21 Arthur Street Belfast BTI 4GA BANKERS Danske Bank Donegall Square West Belfast BTI 6SJ CHARITIES COMMISSION REGISTERED NUMBER 101946 Page I
ROYAL ULSTER AGRICULTURAL SOCIETY REPORT OF THE COUNCIL FOR THE YEAR ENDED 31ST OCTOBER 2023 Patron: HRH The Duke of Edinburgh Vice Patron: Billy Martin OBE FRAgS President: Mr8 Christine Adams Deputy Presldtnt: C John Henning OBE Nsch FRAgS Past Presidents: John Bamber MBE. Margaret Collinson OBE. John G Kelly OBE BAgr DipAgr Comm FRAgS, Brian T King FRAgS. Cyril Millar FRAgS, The Lord O'Neill KCVO TD, William H Robson OBE CertAgr FRAgS, J L Court¢nay Thompson DL BA BBS Vice Presidents: Retirc 2024: C John Henning OBE Nsch FRAgS, Cynthia Aiken, Jean Mann, Diane Gibson. Retire 2025: Alan Arn)slrong. Wallace Boyd. David Cunningham, George Flamilton. Retire 2026.. Crosby Cleland FRAgS, Robert Harkn¢ss. Robin Irvine HND, Dipfman. FRAgS. Retire 2027.. lan Duff BAgr Msc MIAgrE. FRAgS, Terence McKeag BEM Ipas5ed away 6th October 20231, T Edwin Adams, David T C Workman FRAgS. Wilson Logan resigned as Vice President13 Isl March 20231 J A Conn Williamson Ip&ss¢d away 30th November 20221 HtsnorAry Vlce Presldent: Sam Mccausland [10th November 2022], Au51in Perry Ipassed away 16th May 20231 ELEcfED MEMBERS: The Councll of the RUAS conslsts of the Presldent, Past Prtsldents, Vl¢e Pre5ideTrtS And the following:" RETIRING MARCH 2024 Jimmy Allen, William Edward Adamson FRAgS, Mrs Cynthia Aiken Ibecam¢ a Vice Presidenl 16th March 2023], Barclay Bell NDA FRAgS, VaughRn Byrne, Dr Sam Campbell, Robin Cherry MBE FRAgS. Mrs Linda l)avis, Mrs Pal Erwin, Ashley J Flemin8 FRAgS, Miss Pauline Gibson. Desmond Gibson, Mrs Jayne Harkness-Bones Msc. BA {Hons) ARAgS. 18n Harvey MBE MCIJ Fls, Mrs Norma Hoy, Mrs Denise Kelso, Jay Lindsay, Richard Lyiile. Alislair McDonald, Adrian McGowan, Robert S R M¢Kibbin. Geoffrey Ringland, Trevor Shields ARAgS. Stephen Smiih BAgr DipFM FRAgS, Miss Alexandra Woods. RETIRING MARCH 2025 Dr Keith Agnew BAgr, Garcth Arnislrong, Almslair Armslrong. Stewart Baxter, Andrew Bingham, Ms Libby Clarke. James Coburn, David Cunningham Ibeeame a Vice Presidcnt on Ioih November 20221, Michael Cjraham. Nigcl T Hamill. Robin Irvine HND Dipfman FRAgS [became a Vice President on 16th March 20231, Caroline A Jebb. Judith Lyons. Charlcs Mark, David G Mark, John M¢Mordie, John Mcrcer BSc11 Ions) CEng, Dr Charlolle A Moore BAgr PhD DipAgrComm FRAgS, Peter Morrow, John Murphy. Paula Mccarthy, Mrs Joanne M McKibbin. The Hon Mrs Celia O'N¢ill BA (Hons), John B Robinson, Allison Mercer BS¢ (Hons) BSAgr Chem {Hons), Vanda Stewart Iresigned 10th March 20231, David Thomp50n RETIRING MARCH 2026 Mervyn A¢h¢son, Mrs Shirley Anderson, Harold Diekey, Brian Hunter, William Jone& Gerard Francis Kellyj Brendan Kellyy Mark Logan ON[) rRA8S, lan Mark, John C8mpbell Martin BEM FfNDIAgric) Lm Nsch FRAgS, W Duke MLCartney, Mrs Sara Mccracken Iresigned 3rd february 20231, William McElroy, Howard M¢llwaine. Mis5 Roberta Mcmullan BEM, Scott McKibbin, JRme5 MCV Morrison BEM 13Agr (Honsl FRAgS, David O'Neill, Mrs Myrtle Peak, Wilbert Rankin Iresigned 8th February 2023]. Jason Robert Rankin Nsch ARAgS, Michacl Robson ONDA ARAgS, Samuel James Stnyth. Amanda Wallace, Jay Warden, Mrs Leanne Workman Appointed by the Department of Agriculture, Environment & Rurfil Affairs Dr Alistair F Carson BAgr PhD PGCHET FRAgS, Nomian Fulton. Robert J Huey MVB Dvph(MH) MRCVS ARAgS, Martin McKendry Page 2
ROYAL ULSTER AGRICULTURAL SOCIETY REPORT OF THE COUNCIL FOR THE YEAR ENDED 31ST OCTOBER 2023 The Council presents its annual report and audiled consolidated financial statements of the group for the year ended 3 Isl October 2023. 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) effective I st January 2019 (Charities SORP (FRS 102)), in preparing the annual report and financial statements of the Society. REFERENCE AND ADMINISTRATION DETAILS Details of the registered office, elected members, independent advisors and other relevant infomiation are given on pages I to 2. DETAILS OF THE SOCIETY The Society Th¢ Society was established in 1854 as the North East Agriculrnral Association. It was incorporated in 1894 under the Educational Endowmenls (Ireland) Act 1885 and a Scheme was drawn up at that time for its future govern ance and management. The Association changed its name in 1903 to the Ulster Agricultural Society, and pennission to use the Royal prefix was granted the following year. The Society is registered with the Charity Commission for Northern Ireland (Northern Ireland Charity number: NIC101946, Inland Revenue Ref. XN 46025) and it5 income is applied towards the delivery of its objectives. Commtrci41 Trading Activities The King's Hall Exhibition & Conference Centre Limited was incorporated in October 1997 as a wholly owned subsidiary of the Royal Ulster Agricultural Society. This company's principal activity is the provision of ¢vent facilities and event operation services for hire by external event organisers. This company has no fixed assets or staff but is charged a licence fee for the use of the Society's premises and equipment and a management fee to cover establishment expcnses and the secondment of staff. King's Hall Harberton Estates Limited was incorporated in November 2014 as a wholly-owned subsidiary o f the Society. This company's sole activity is managing residential real estate activities. This company has no staff but is charged a managcment fee by the Society for the secondment of staff and resources. KH Balmoral Estates Limited was incorporated in October 2017 as a wholly-owned subsidiary of the Society. This company's sole activity is managing commercial real estate activities. This company has no staff but is charged a management fee by the Society for the secondment of staff and resources. Any surpluses the subsidiary companies generate are paid to the Society under covenant. STRUCTURE, GOVERNANCE AND MA]YAGEMENT Governance and Internal Control Council has overall responsibility for ensuring that the Society has an appropriate system of controls, financial and otherwise, and for providing reasonable assurance that it is operating etTiciently and effectively, its assets are safeguarded against unauthorised use or disposition, proper records are maintained, and financial inforniation used within the Society or for publication is reliable and that il compli¢s with relevant laws and regulations. The Council, as a corporate body, 15 also considered the Trustee of the Society for Charities Act pUoSe$. The President of the Society shall be ex-officio the Chairnlan of the Council. The system of intemal controls is designed to provide reasonable, but not absolute, assurance against material misstatement or loss. Key features of the system include the preparation of an annual budget for approval by the Finance Committee. regular consideration by the Finance Committee of financial results. review of vari ance from budgets; non-financial perforniance indicators and benchmarking reviews; delegation of authority and segregalion of duties. and the identification, review and managemeni of strategic, business and operational risks. Page 3
ROYAL ULSTER AGRICULTURAL SOCIETY REPORT OF THE COUNCIL FOR THE YEAR ENDED 31ST OCTOBER 2023 STRUCTURE, GOVERNANCE AND IVIANAGEMENT- eontlnued Employees A staff of twenty-one employees undertakes the management and operations of the Society. The Society's employment policies and practices are reviewed annually to ensure they Comply with local relevant employment legi slalion. The Society has a training and development policy to en sure that all staff are competent to undertake the duties set out in their job descriptions. Regular formal meetings take place to ensure communication of all pertinent matters. Council would like to thank the staff members for their professional contribution to the Society and their continued loyalty, SUPPOrt and hard work. Organisational Structure Details of how Council is composed, and its current membership, can be seen on page I, The Scheme prov ides for the appointment by Council of committees consisting of members of the Society. Potential new Council members are nominated by a Society member and elected by the Society's Tnember5hip. They are subjecl to retirement by rotation but are eligible to sland for re-election. Committees meet as required and make recommendations for decision by Council. The Finance Committee has a range of delegaled duties that it can implement without reference to Council. During the financial y¢ar, there were fifty-seven committee meetings, and Council met on six occasions. Rlsk management Through the Finance Committee, Council has established a detailed procedure to review the significant risks to which the Society is exposed. This review aims to establish a risk management strategy which Comprises: Regular review of the risks ihat the Society may face, which are evalualed on an annual basis based on a comprehensive risk register. The establishment of systems and procedures to mitigate 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 has identified the following key risks: The Society's financial sustainability is reliant on the generation of enabling finance through its comrnercial subsidiaries, which transfer under covenant all surpluses generated to the Society. There is a need to ensure adequate succession planning and a retention policy is in place for the Council, committees, and key managcrnent positions. There is a need to maintain adequate levels of capital funds held as unrestricted reserves to ensure that the Society's development strategy can be implemented and that ihird-party obstacles can be managed and, when necessary, mitigatcd. The risk that Society events or enabling finance activities are cancelled due to external factors such as weather, an outbreak of animal illnesses, political factors or pandemics. The Finance Committee has prudently reviewed the significant risks that the Society faces and believes thal achieving thc free reserves sufficient to fund twelve months of normal activity. combined with the annual review of the controls over key financial systems, will provide adequate resources in the event of adverse conditions. The Finance Committee has also examined other business and operational risk5 the Society faces, confirming that it has estab lished systems to mitigate significant risks. Council is responsible for the managem¢nt of risks faced by the Society. Detailed consideration of risk is delegated lo the Finance Committee, assisted by the Senior Management Team. A fornial review of the Society's risk managernent process is undertaken annually. OBJECTIVES AND ACTIVITIES The Scheme, which wa5 last amended 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 securities are vested in Council to be utilised for the purpose of fulfilling the charitable objectives of the Society as detailed within the Scheme. Page 4
ROYAL ULSTER AGRICULTURAL SOCIETY REPORT OF THE COUNCIL FOR THE YEAR ENDED 31ST OCTOBER 2023 OBJECTIVES AND ACTIVITIES - continued The Society's charitable objectives are: The promotion of agriculture by holding agricultural shows and delivering agricultural instruction through exhibitions. lectures and other such means as may from time to time be found expedient and in accordance with the provisions of the Scheme. The promotion of industries, art, sciences and literature. These items were added io the Scheme in 193 7 but have always been treated as minor relative to the main objective of promoting agriculture, The RUAS seeks to achieve its objectives through the following: Delivery of agricultural shows which seek to.. Contribute lo the enrichment of public awareness an d understanding of the Province's agri-food sector. Promote good farming practices and d¢velopment of the skills and craft5 needed to enhance the sector. Encourage the advancement of breeding and rearing of livestock (including horses and poultry). Presentation of awards to those engaged in agriculture, particularly recognising individual employees, 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 services to enabl¢ the venues to host a range of cultural and sporting events. Furtherniore KH Balmoral Estates Limited oversees The preservation of the iconic King's Hall building which is lisled with the N I Environment Agency. The overarching strategy of the Society is as follows: Ensure that the objectives as detailed in the Schem e are delivered. Ensure that the Society's assels. investments and funds are prudently managed. Utilise the Society's assets, investments and funds to implement sustainable enabling finance streams. The Finance Committee has recommended a comprehensi ve exercisc to produce a new five-year strategic pl an that will articulate the Society's vision for the future, mission statement, and aims. This strategic plan will ensure that: The Society focuses on its beneficiaries, needs within the challenging environment in which the Agri-f(iod sector now operates. The future direction and development of the Socicly is defined in a cohesive manner. The Society's future performance will be measured against agreed aims and objeclives; The Society operates in a financially prudent manne r to safeguard the financial sustainability of the Society. The reputation and relevance of the Society across a rang¢ of age groups is enhanced. PUBLIC BENEFIT Council considers that these objectives, activities and goals have a clear public benefit in enhancing rural communitles, social, economic, and cultural well-being. The public benefits include.. Improving standards of livestock and agricultural practices within the agricultural sector in Northern Ireland in particular and beyond; Preserving and maintaining high standard5 and skill levels within the agricultural sector in Northem Ireland and beyond. Development and preservation of rural crafts and craftsmanship necessary to enhance the agricultural sector in the Province. Ensuring that rural traditions and skills are passed down through successive generations of the agricultural community, Improving the welfare of agricultural animals through the recognition of high standards of agricultura I husbandry throughout the Province and beyond; Enhancing the general public's knowledge and understanding of the Province's agri-food sector, In drafting these statements, Council has 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 publ ic benefit guidance published by the Charity Commission. Page 5
ROYAL ULSTER AGRICULTURAL SOCIETY REPORT OF THE COUNCIL FOR THE YEAR ENDED 31ST OCTOBER 2023 ACHIEVEMENTS AND PERFORMANCE The financial year represented a period of growth and success for the Society as the charitable activities of the Society were enhanced with support from a wide range of stakeholders. The Council coinmitted to expending funds from its reserves to hold its annual agricultural shows to ensure that the Society continued to deliver its obj ectives. In order to a¢hi¢ve the Society's objectives, the following events have taken place within the financial year.. Royal Ulster Premler Beef & Lamb Championships 2022 The 5th Royal Ulsler Premier Beef & Lamb Championsh ips, in partnership with principal sponsor Bank of Ireland, took plac¢ on Tuesday 22nd November 2022. in the Logan Hall. The Society welcomed visitors to the Show and Sale, which hosted a significant number of exceptional quality animals this year, with ninety-two cattle, tweT]ty-s ix calves and sixty- five pairs of sheep Coming forward on the day. The Caltle Young Handler and Lamb Young Handler Classes were well supported. The judges confirnied that they were impressed with the standard of anirnals presented and the Skill exhibited by the participating young handlers. The winner of the covekd Allams Cup and the highly sought-after title of Supreme Champion was JCB Commorcials from Co Down with their heifer Totally Illegal. Robert Miller from Moneymore won the popular Housewife's Championship with his Limousin Heifer, Dashing Princess. The Champion Calf was exhibited by Joseph Mccarragher from Armagh. Lambs, shown on the day, competed for the title of Best Butcher Pair. Jamie Mccutcheon from Trillick received the prestigious award and was also awarded the Champion Young Farmer title. Royal Ulster Winter Falr 2022 The Society hosted the 36th Royal Ulster Winter Fair in Association with Danske Bank on Thursday 8th December 2022. Along with substantial visitor numbers, the event hosted 190 sector-specific trade stands, including companies from Italy, France. and Germany. lan Wilson, President of the Belfast Dog Show Socicty. judgcd the Tradc Stand Awards. The Best Large Trade Stand was awarded to Keenan Alllech, the Best Small Trade Stand was awarded to Rural Support and the Best Kept Dairy Stsll was awarded to Kirf(inriola Pedigree Livestock. The event drew 159 entries, with 113 cattle coming forward on the day - which demonstrales excellent support for the event. The Republic of Ireland was well represented, with 49 cattle entered, which is the highest num ber al an RUAS Winter Fair to date. Canadian livestock judge Pierre Boulet was welcomed to the event, One of Canada's most successful show men, Pierre has been Premier Exhibitor at The Royal Agriciiltural Winter Fair Holstein Show 8 times as well as Prem ier Breeder. On the day the Showmanship junior class was won by Kate Jones from Gorey, while the interniediate class was won by Will Jone5 from Gorey. Holly Keenan from Monaghan won the senior class. and Alexander Tinney from Letterkenny won the mature class. The Dairy Shorthom Breed Championship was won by Ihe McLean family from Bushmills. The Jersey Champion was won by the Fleming Family from Seaforde. The Ayrshire Champion went to Raymond Stewart from Ballyclare. The Holstein Championship was won by Li am & Sandra Murphy from Co Carlow. The overall Interbreed Champion was won by the Flem ing Family from Seaforde with Potterswalls Chrome Glamour. Balmoral Show 2023 The Society hosted the 154th Balmoral Show from 10th to 13th May 2023. The Society was delighted to welcotne a significant number of visitors over the four days. Of note, the Society welcomed the Secretary of Slate for Northern Ireland, the Right Honourable Chris Healon-Harris and the Right Honourable Therese Coffey. Secretary of State for DEFRA. Many international visitor5 also Visited the Show, including a delegation from the Chinese Consulate and a group of visitors from Vietnam. Balmoral Show was well supported by livestock exhibitors with 3,127 animals competing within the livestock competitions. Once again. the cattle exhibitors del iver¢d an excellent exhibit of high-quality livestock, with 567 beef cattle and 154 dairy cattle presented for judging over the Show's four days. Notable prize winners included WD & JA Connolly with their Charolais bull Balmyle Sandy, who was th¢ overall champion in the beef section and also won the Champion of Champions. Cyril and Martin Millarwon the overall Dairy Champion with their Holstein cow Damm Tattoo Sallie. The Show's finale was the cattle parade which this year saw a selection of stock from acr05S the breeds proudly parade in the Main Arena. Page 6
ROY AL ULSTER AGRICULTURAL SOCIETY RF.PORT OF THE COUNCIL FOR THE YEAR ENDED 31ST OCTOBER 2023 ACHIEVEMENTS AND PERFORMANCE- continued The Sheep Shearing Competitions were again hosted in the Fold structure. The entries were up from the previous year with 163 competitors and 1557 sheep shorn. Ther¢ were shearers from New Zealand, Norway and Patagonia. The quality of shearing was excellent, especially from the Junior shearers. There were sheep shearing demonstrations on Thursday where the Wool Board set UP training videos, which provided a lot of interest. The Horse Classes and Show Jumping Competitions in the Show were a great success, with the horses competing tn excellent condition. The coveted title of Supreme Hunter Champion was awarded to Endeavour R, owned by Debbie Harrod and bred by Simon Mccarthy. Young Stock Champion was awarded to Flogas Rothschild SPB, owned by Tiernan Gill and brcd by A de Crom; Supreme Mini Ridden Champion was awarded to Dowhills Beau Soleil, owned by Cherie McHugh and ridden by Brylei Gallagher. Balmoral Show hosts thc only CS12 International Show that is held in Northern Ireland, and demand is high, with athletes from all over the UK and Ireland striving to bring their top horses to jump on the Society's exceptional Grade l international standard grass arena. Over the four days, 12 show jump ing championships took place. All 125 qualifying places were taken up in the national classes and the dcmand to jump intemationally al Balmoral CS12 was high, with 72 athlete applicatio ns submitted from 10 different nations, all hoping to claim one of the 40 available spots. Unfortunately, the poultry, pigeon and egg sections were again cancelled in line with DAERA restrictions on poulty gatherings due lo avian flu's prevalenc¢, The Chairman of the Poultry Committee and his farnily provided a display of birds from their flock. The standard of birds within the display was exceptional, and the Chairnian's enduring efforts to deliver the exhibit were commendable. The Show was well supported by Itvestock exhibitors in all sections, and the Society is grateful for their ongoing support. The Healthy Horticulture Marquee was well-received and delivered educational content to a wide audience. Exhibitors in this section included Rural Support, National Trust. RSPB, CAFRE, Horticulture Forum, and Ulster Bee Keepers, all delivering inforniative exhibits. The VEG NI IHort icultural Forum exhibit was excellent and delivered a wid¢ variety of engaging and educational topics alongside the Mighty Spud display. The potting table for ch ildren to plant seeds and plants was popular. The Gabble family provided over 2000 lettuce plugs for the children's potting table, along with flower and vegetable seeds provided by Westland Horticulture Ltd. The "Crown Your Teapot" floral competition took place io mark HRH King Charles III'S Coronation and was well supported. The Cookery Theatre drew large audiences. There was a full Cookery and Gardening Demonstration timetable with demonstrations provided by One Small Seed Flower Farm who, fami local, 5ea50nal and sustainable flowers. Esker Farm Daffodils. Island Flowers who demonstrated edible kitchen wreaths. Conservation Volunteers wlth Growing for Health and Biodiversity- and Rural Support with Social Farming and caring for our communities. Organised by Food Nl and supported by the Northern Ireland Regional Food Programme. the Nl Food & Drin k Pavilion included a number of new and innovative businesses with emerging trends in sustainability, health and food tourism. New to thc Pavilion this year was the Nl Drinks Area, which c¢lebrated excellent local producers of beer, cider, gin, and whiskey. Throughout the Show, three theatre kitchen s hosted Cooking demonstrations celebrating Northern Irish produce. The Tesco Theatre Kitchen focused on cooking on a budget using local ingredients, while the Tourism Nl Kitchen showcased some of Northern Ireland's top food and drink ¢xpcriences. A new addition this year was the Moy Park 80th Anniversary Theatre Kitchen, which focused on exciting* simple family meals highlighting local chicken. The Balmoral Show Schools Trail attracted over three thousand children from primary and special needs schools who enjoyed an interactive and educational day out. The Schools Trail programme aims to help school children better understand food and agriculture within Northern Ireland in an exciting and dynamic environment. The trade exhibit layouts were revis¢d, and a lotal of 587 trade exhibitors supported the Show. The new trade concept in the Eikon, "The Makers Market". was a great success, with over 40 local artisan producers, artists, and crafters exhibiting. The Trade Stands were judged by Mared Jones, previously of the Royal Welsh Agricultural Society. The w orthy winner of the overall trade stand went to Gibson Paving, who had a fantastic stand in the Healthy Horticulture area. The Society is grateful for this vital support. The Show's success is also dependent on the continued support of the Show sponsors, including the efforts of our principal sponsor, Ulster Bank and our platinum sponsors, ABP. Marks & Spencer, SPAR and Tesco. Page 7
ROYAL ULSTER AGRICULTURAL SOCIETY RF.PORT OF THE COUNCIL FOR THE YEAR ENDED 31ST OCTOBER 2023 FINANCIAL REVIEW The Consolidated Statement of Financial Activities on page14 details a net income of £322,974 (2022 income: £424,885). Review of perfornianee The perforniance of the Society and its subsidiaries during the year is discussed in the Annual Report. The following paragraphs indicate where a detailed analysis of the results can be found in the financial statements. Ineome generation The Consolidated Statement of Financial Activities provides a detailed analysis of the Society's income during th¢ y¢ar, Resourees expended The supporting notes to the Consolidated Statement of Financial Activities disclose in detail how the Society's resources have been expended in the year. ExpendiNre is in l ine 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 is to retain a level of free reserves that match the Society's requirements both at th¢ ¢utT¢nt time and for the foreseeable future. Free reserves are those funds not tied up in fixed assets or restricted funds. The unrestricted liquid reserves as at 31 st October 2023 are £6,512,876 (2022.. £4,977,995), representi ng fourteen months (2022., ten months) of unrestricted activity. In calculating reserves, Council has excluded from the total funds, fixed assets of £24,020,716 (2022: £25,232,682) and restricted funds of £15,631 (2022: £15.572). The Finance Committee considers that the Society requires free reserves equivalent to twelve months of unrestricted activities to enable the Society to develop its agricultural shows. to ensure that they continue to meet the needs of the agricultural sector; and to expand the educational elements of the shows to audiences throughout Ireland and continue the development of the Eikon Exhibition Centr¢ at Balmoral Park as an international events venue. FUNDS HELD AS CUSTODIAN ON BEHALF OF OTHERS There are no ndS held as custodian tn15tee on behalf of others. PLANS FOR FUTURE PERIODS The strategic objective of Council is to progress the Society'5 development opportunities to ensure that the enabling finances required are achieved in the medium term, thereby enabling the Society to enhance its charitable activities within that timescale. In 2012, the Society's membership approved the proposal to 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 the development agreement with KH (Balmoral) Commercial Limited for the commercial redevelopmcnt of the King's Hall and the associated lands at 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 oversees the development agreement's execution by the developer through the disposal of16.25 acres of land at the Harberton en d of the Complex for residential development. The capital funds derived from this agreement are transferred to the Society. They are held by the Society to be reinvested in the Eikon Exhibition Centre at Balmoral Park's 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 development. The Eikon Hall and Dr E F Logan Hall combine to create the largest events and exhibition destination in Northern Ireland. with more than l 0,600 sqm of internal exhibition space. During the reporting period. the Society continued the development of Balmoral Park, including groundworks and staff facilities. The Finance Committee regularly consider detailed financial projections in relation to each element of the overall strategic plan and ensures that the Balmoral Park development plans are phased to ensure the ongoing viability and growth o f the Society. Page 8
ROYAL ULSTER AGRICULTURAL SOCIETY REPORT OF THE COUNCIL FOR THE YEAR ENDED 31ST OCTOBER 2023 IMPACT OF THE COST OF LIVING During the year and subsequent to the reporting period, the cost of living crisis has affected the Society in ternis of increasing costs - particularly fuel, light and heating, and contracted labour costs. Furtherniore, the spiralling cost of construction will impact the viability of future capital projects. Looking forward. it is envisaged ihat the running costs of the Society will continue lo rise. During the financial year, the Office for National Statistics recorded a Retail Price Index change of13.4% in January 2023, a 40-year high, before reducing to a Retail Price Index increase of 6.10/0 at the year-end. This inflationary pressure continues to significantly impact the runn ing costs of the Society going forward. Regarding energy prices. the Society notes that electricity prices and gas prices are expe¢led to remain high. The Society has revised its budgets to reflect these increasing costs. The Society intends to utilise capital funds lo install energy-saving components and systems and ensure that encrgy is used prudently and loads are managed efficiently, particularly during Balmoral Show and other large-scale ev¢nts. During the financial year, the Society has sourced its electricity from North¢m Ireland's only supplier of100 % locally-generated renewable electricity. Fuel prices incurred by the Society reached record highs in the previous year, and although the price has Slowly declined during this financial year, it has remained historically high due to production CLlts by OPEC+ nieinbers includiiig Russia. The price of ci'tjde oil lias been volatile iii recent months, and a li ighei. oil price is a key risk given tlie ongo ing conflict in the Middle East. A siistaiiied period of higher oil pi'ices will I'aise inflation. If the UK government decides to raise fuel duty in spring 2024, this will compound the difficulties facing the Society as a result of the HMRC reclassification on the use of red diesel. As part of the Society, s strategy to reduce its carbon footprint, it inlends to appraise renewable energy and energy efficiency projects at the Venue. The Sooiety has a professional team of employees with skill and exp¢rience bases that are not readily replicated within the Province. The Society is aware of the need to retain its staff complement and delivera succession plan. The Society uplifted the Noveinber 2023 pay award significantly, albeit below the prevailing inflation rate. and this was affordable going forward due to a reduction in the overall strdffing number. Due to the nature of the Society's activities, the Society is dependent on the supply of contracted labour teams. With the Nat ional Living Wage set lo rise by 9.8 % from I st Apri12024, this will significantly increase the costs of event services, including security, first aid, housekeeping and manual labour. The Society will ensure that contractors are managed effectively and service contracts are tendered on a cyclical basis. The Office for Budgetary Responsibility predicts rising prices and the impact of interest rate increases will continue to erode real wages and reduce living standards over the next two financial years. This will significantly impact the disposable income of individuals and, consequently, make generating charitable income through Show admissions and livestock entries more challenging. Th¢ challenge for the Society is to ensure that the costs ofattending events, including the Balmoral Show, represent value for money from the attendees, perspective while ensuring full cost coverage. From a commercial perspective, the reduction 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 to the Society and the Group. The Society plans to 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 activilies to ensure that the Society delivers its future events programme. However, Council considers that in the short to med ium terni, and bas¢d on the information available, the Society will continue to operate as a viable going concern. Through its strategic planning and prudent management, the Society has accumulated unrestricted reserves at a level that demonstrates the Society's ability to continue as a going concern in the medium term. The Society. through its slaff. has devis¢d adaptable event platf0rn15 and formats that will allow the Society to deliver its charitable objectives safely, effectively and efficlently. The Society has three diverse subsidiaries that operate within the events, commercial real estate and residential development sectors. The diverse nature of these sectors provides a spread of the risk in generating enabling finance for Ihe Society. Furtherniore, all subsidiaries have programmed activ ities in future periods. The Society has invested in world-class facilities 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 use5 should this be detemiined as necessary. Council is confid¢nt that with the resou rces it has in place. and the efforts of its staff, committees, members, exhibitors and other stakeholders, the organisation will continue its beneficial work in line with its charitable objectives. Page 9
ROYAL ULSTER AGRICULTURAL SOCIETY REPORT OF THE COUNCIL FOR THE YEAR ENDED 31ST OCTOBER 2023 STATEMENT OF COUNCIL'S RESPONSIBILITIES The Council is responsible for preparing the Annual Report and the financial statements 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 ihe slate of affairs of the Society and the Group and of the incoming resources and application of resources of the group for that period. In preparing these financial statements, the Trustee is required to.. select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charities SORP 2019 (FRS 102). rnake judgements and estimates that are reasonable and prudent. state whether applicable accounting standards. comprising FRS 102, 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 Society will continue in business. The Council are responsible for keeping proper accounting records that disclose with reasonable accuracy at any tirne the financial position of the Society and enable them lo ensure that the financial statements comply with the Charities Act (Northem Ireland) 2008 (as amended by the Charities Act (Northern Ireland) 2022), the Charities (Accounts and Reports) Regulations (Northern Ireland) 2015. They are also responsible for safeguarding the assets of the Society and the Group and, hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS Each of the Council members confirms that, so far as they are aware, there is no relevant audit infomiation of which the auditors are unaware. Each Council member has taken all ihe steps that they ought to have taken as a Council member in ord¢r to make themselves aware of any relevant audit inforniation and to establish that the auditors are aware of that infomiation. AUDITORS The auditors, Baker Tilly Mooney Moor¢, have indicated their willingness to continue in office, and a resolution concerning their re-appointment will be proposed at the Annual General Meeting. BY ORDER OF THE COUNCIL: J Martin Chairnian of the Finance Committee Date.. frL...F£.k.. J.Id34. Page 10
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF ROYAL ULSTER AGRICULTURAL SOCIETY Opinion We have audited the financial statements of the Royal Ulster Agricultural Society (the'parent charity,) and its subsidiaries (the 'group') for the year ended 3 1st October 2023 which comprise the Consolidated Statement of Financ ial Activities, Consolidated Balance Sheet. Society Balance Sheet, Statements of Changes in Funds (Group and Society), Consolidated Cash Flow Statement, Notes to the Consolidated Cash Flow Statement and Notes to the Financial Statements, including a summary of significant accounting poli¢i¢s. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: give a true and fair view of the state of the group's and parent charity's affair5 as at 31 st October 2023, and of the group's total incoming resources and expenditure of resources 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 Charities Act (Northern Ireland) 2008 (as amended by the Charities Act (Northern Ireland) 2022). Basis for opinion We conducted our audit in accordance with Tnternational Standard5 on Auditing (UK) {ISAs (UK)) aT]d app licable law. Our responsibilities under thos¢ standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibil ities in accordance with these requirements. We believe that the audit evidence we have obtained is suffici¢nt and appropriate to provide a basis for our opinion. Concluslon regarding going eoncern In auditing the financial statements. we have concl uded that the Trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate, Based on the work we have perfomed, we have not identified any material uncertainlies relating to 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 at least twelve month s from when the financial statcments are authorised for issue. Our responsibililies and the responsibilities of the Trustee with respect to going concem are described in the relevant sections of this report. Other Informatlon The Trustee 15 responsible for the oiher information. The other infomation comprises the infornlation included in the Trustee's annual report, other than the financial statements and our Auditor's report thereon. Our opinion on the financial slatements does not cover the other infomiation and, except to the extent otherwise explicitly stated in our report, we do not express any fomi of assurance conclusion thereon. En connection with our audit of the financial statements, our responsibility is to read the other inforniation and, in doing so, consider whether the other infomiation is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise app¢ars to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to deterniine 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 perfomled, we conclude that there is a material misstatement of this other inforniation, we are required to report that fact. We have nothing lo report in this regard. Page 11
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS O F ROYAL ULSTER AGRICULTURAL SOCIETY Oplnion on olher matters preseribed by the Charities Aet (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 infomiation given in the Report of the Counci I for the fmancial year for which the financial statements are prepared is consistent with the financial statements. and the Report of the Council has been prepared in accordance with applicable legal requirements. Matters on whieh we Are required to report by exception In the light of the knowledge and understanding of the group and parent charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Council. We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations (Northem Ireland) 2015 require 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 Trustee's remuneration speci fied by law are not made; or we have not received all the inforn)ation and explanations we require for our audit; or Responslbllltles of trustees As explained more fully in the Trustee's responsibi lities slatement set out on page 10 the Trustee 15 responsible for the preparation of financial statements which give a true and fair view, and for such internal control as the Trustee deterniines is necessary to enable the preparation of financial statements that are free from material misstatemeni, whether due to fraud or error. In preparing the financial statemenls, the Trustee is responsible for assessing the group's and parent charity's ability to continue as a going concern, disclosing, as applicable, matlcrs related to going concern and using the going concern basis of accounting unless the Truslee either intends to liquidate the group or the parent charity or to ¢e&se operaiions, or have no realistic altemative but to do so. Auditors, responsibilities for the audit of the fin aneial statements W¢ have been appointed as Auditor under paragraph 6 of schedule 6 of the Charities Act (Northem Ireland) 2008 (as amended by the Charities Act (Northern Ireland) 2022) and report in accordance with regulations inade under Section 66 of that Act. 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 lo issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (IJK) will always delecl a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be exp¢cl¢d ¢0 influence the economic decisions of users iakcn 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 mi55tatements in respect of irregularities, including fraud, The extent to which our procedures are capable of detecting irr¢gularities, including fraud is detailed below: We considered the opportunilies and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in relation to revenue recognition. In common with all audits under ISAS (UK), we are also required to perforni specific procedures to respond to the risk of management override. Page 12
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF ROYAL ULSTER AGRICULTURAL SOCIETY Auditors, responsibilities for the audit of the fin ancial statements - Continued We also obtained an understanding of the legal and regulatory frameworks that the group and parent charity operates in, focusing on provisions of those laws and regulations that had a direct effect on the detemiination of material amounts and disclosures in the financial stateTnent5. The key laws and regulations we considered in this context included the UK Companies Act. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the group and parent charity's ability to operate or to avoid a material penalty. Our procedures to respond to risks identified included the following: reviewing the financial statement disclosures and tcsling to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial slalem¢nts; enquiring of management and external legal counsel concerning actual and potential litigation and claims" perforniing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud. reading minutes of meetings from those charged with govemance. in addressing the risk of fraud through management override of controls. testing the appropriat¢ne5s of journal entries and other adjustments; assessing 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 nornial course of business. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indicattons of fraud or noncompliance with laws and regulations throughout the audit. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more thal compliance with a law or regulation is removed from events and transactions reflected in the financial statemcnts. as we will be less likely lo bccome aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves i ntentional concealment, forgery, collusion, omission or misrepresentalion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uklauditorsrespons ibilities. This description forms part of our Auditor's report. Use of our report This report is made solely to the charity's Trustee, as a body, in accordance with Part 4 of the Charities (Accounls and Reports) Regulations (Northern Ireland) 2015, Our audit work has been undertaken 50 that we might state to the charity's Trustee those matters we are required io state to them in an auditor's report and for no other purpose. To the fullest extent perniitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's Trustee as a body, for our audit work, for this report, or for the opinions we have formed. Joann¢ Small (Senior Statutory Auditor) For and behalf of Baker Tilly Mooney Moore Statutory Auditors 17 Clarendon Road Clarendon Dock Belfast BTI 3BG l J-rE Zo& Page 13
ROYAL ULSTER AGRICULTURAL SOCIETY CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST OCTOBER 2023 Unrestricted funds Restrlcted funds Total 31.10.23 Total 31.10.22 Notes INCOME Volunlary income Activities for generating funds Income from charitable activities 52,410 2,734,971 3,093,009 52,410 2,735,205 3,093,009 61,533 3,503,309 2,785,957 234 TOTAL INCOME 5,880,390 234 5,880,624 6.350,799 EXPENDITURF. Costs of generating funds Charitable activities Other expenditure 2,077,976 3,084,876 342,186 2,077,976 175 3,085,0S1 342,186 2,461.845 2,893,056 432,920 TOTAL EXPENDITURE 5,505,038 175 5,505,213 5,787,821 NET INCOME 375J52 59 375,411 562,978 Net galnsl(losses} on Investments (52,437) (52,437) (138.093) NET INCOME 322,915 59 322,974 424,885 Total funds brought forward 30,210,677 15,572 30,226,249 29,801,364 Total funds earrSed forward 30,533,592 15,631 30,549,223 30,226,249 The notes forni art of these financial statements Page 14
ROY AL ULSTER ACRICULTURAL SOCIETY CONSOLIDATED BALANCE SHEET FOR THE YEAR ENDED 31ST OCTOBER 2023 31.10.23 31.10.22 Notes FIXED ASSETS Intangible assets Tangible assets Investments io 367 18,073,006 9,947,343 28,020,716 615 19,345,953 5.886,114 25,232,682 13 CURRENT ASSETS Stocks Debtors Cash at bank and in hand 40,040 483,205 2,876,582 38,778 1,018,100 4,832,144 14 3,399,827 5,889,022 CREDITORS Amounts falling due within one year 15 (837,167) (864,840) IYET CURRENT ASSETS 2,562,660 5,024,182 TOTAL ASSETS LESS CURRENT LIABILITIES 30,583,376 30,256,864 CREDITORS Amounts falling due after more than one year 16 (34,153) (30,615) IYET ASSETS 30,549,223 30,226,249 FUNDS Unrestricted funds Restricted Funds 18 A9 30,533,592 15,631 30,210,677 15,572 TOTAL FUNDS 30,549,223 30,226,249 The financial statements were authorised for issue by the Council on 9th February 2024 and signed on its behalf by.. J Martin Chairnlan of the Finance Committee The notes forni art of these financial statements Page 15
ROYAL ULSTER AGRICULTURAL SOCIETY SOCIETY BALANCE SHEET FOR THE YEAR ENDED 31ST OCTOBER 2023 31.10.23 31.10.22 Notes FIXED ASSETS Intsngible assets Tangible assets Investments in group subsidiaries Investments Jo 367 9,645,630 23,850,000 9,947,343 43,443,340 615 9,817,510 23,850,000 5,886,114 39,554,239 12 13 CURRENT ASSETS Stocks Debtors Cash at bank and in hand 20,631 1,492,940 363,452 20,836 892,130 91,371 14 1,877,023 1,004,337 CRFDITORS Amounts falling due within one year 15 (14,736,987) (10,301,712) IYET CURRENT LIABILITIES (12,859,964) (9,297,375) TOTAL ASSETS LESS CURRENT LIABILITIES 30,S83,376 30,256,864 CREDITORS Amounts falling due after more than one year 16 (34,153) (30,615) NET ASSETS 30,549,223 30,226,249 FUNDS Unrestricted funds Restricted funds 18 19 30,533,592 15,631 30,210,677 15,572 TOTAL FUNDS 30,549,223 30,226,249 The financial statements were authorised for issue by the Council on 9 February 2024 and signed on its behalf by: J Martln Chairnian of the Finance Committee The notes form art of these financial statements Page 16
ROYAL ULSTER AGRICULTURAL SOCIETY STATEMENTS OF CHANGES IN FUNDS FOR THE YEAR ENDED 31ST OCTOBER 2023 GROUP Unrestricted funds Restricted funds Total funds Bglanee al 1st November 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 15,572 30,226,249 Surplus from financial activities 322915 59 322 974 Balance at 31st Oetober 2023 30 533 592 30 549 223 SOCIETY Unrestrleted funds Restricted (unds Total funds Balance at 1st November 2021 29,785,832 15,532 29,801,364 Surplus from financial activities 424 845 40 Balance at 31st October 2022 30,210,677 15,572 30,226,249 Surplus from financial activities 322 915 59 322 974 Balanee at 31st October 2023 30 533 592 30 S49 223 Page 17
ROYAL ULSTER AGRICULTURAL SOCIETY CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST OCTOBER 2023 31.10.23 31.10.22 Notes Cash flows from o eratin activities Cash generated from operating activities 938,087 (558,879) Net cash from operating activities 938,087 558,879 Cash flows from investin activities Purchase of tangible fixed assets Proceeds from the sale of development of land Gains and losses on Investing activities Cash invested into investment portfolio (337,629) 1,443,980 (189,556) 2,554,573 (138,093) 5886 114 4 000 000 Net cash from investing activities 2 893 649 3 659 190 (Deer¢ase)/lnerease In cash and cash equlvalents Cash and cash equivalents Ht beginning rjf yeur (1,955,562) 4,832,144 (4,218,069) 9,050,213 Cash and cash equlvalenty at end ofyear 2 876 582 4 832 144 The notes forni art of these financial statements Page 18
ROYAL ULSTER AGRICULTURAL SOCIETY NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST OCTOBER 2023 RECONCILIATION OF SURPLUS TO CASH EXPENDED ON OP ERATIONS 31.10.23 31.10.22 Net movement in funds Amortisation of intangible fixed assets Depreciation of tangible fixed assets Gain on disposal of development land Gains/(losses} on Investing activities Realised Gain on disposal of investment Investment Income received into portfolio Investment fees paid out of portfolio 322,974 248 509,508 (342,913) 52,437 (28,043) (110,208) 424,885 247 498,715 (791.616) 138,093 428,589 (1,262) 534,895 (27,673) 270,324 (7,170) {427,942) {395,708) (Increase)IDecrease in stocks Decrease l(Increase) in trade and other debiors (Decrease)Ilncrease in trade and other creditors Increase/(Decrease) in deferred income Cash generated from operatlons 938 087 558,879) 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 Oetober 2023 31.10.23 1.11.22 Cash in hand Bank deposits 541 2 876 041 381 4831763 2 876 582 4832 144 Year ended 31st October 2022 31.10.22 1.11.21 Cash in hand Bank deposits 381 4831763 283 9 049 930 4,832 144 9050213 Page 19
ROYAL ULSTER AGRICULTURAL SOCIETY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2023 GENERAL INFORMATION The Royal Ulster Agricultural Society's objective is the promotion of agriculture in Northern Ireland by holding agricultural shows, and by giving agricultural instruction by exhibitions, lectures and by other such means as may from time to lime be found expedient and in accordance with the provisions of the Scheme. The registered office can be found on the Legal and Administrative Inform ation page. The presentation currency of the financial statements is the Pound Sterling (£) ACCOUNTING POLICIES Basis of preparation The charity constitutes a public benefit entity as deftned by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with ihe Financial Reporting Slandard applicable in the UK and Republic of Ireland (FRS I02) (effective I st January 2019)- (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ircland and the Charities Act (Northcrn Ireland) 2008 (as amended by the Charitie5 Act (Northern Ireland) 2022). The financial statements are prepared on a going concern basis under the historical c05t convention, modified to include certain items at fair value. Golng eoncern The Society's forecasts and projections, taking account of reasonable p055ible changes in perforniance 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 its current cash and investment resources. The Council have a reasonable expectation that the organisalion has adequate resources lo continue in operational exislence for a period of at least 12 months from the dale of approval of the financial statements. Thus, they continue to adopt the going concern basis of accounti ng in preparing the annual financial statements. Flnanclal Reportlng Standard 102- redueed diselosure exemptions 1.he p(Irent charity satisfies the criteria of being a qualifying entity as defined in FRS 102, As such, advantage has been taken of the following disclosure exemptions available under FRS 102: a) No cash flow statement has been presented for th e parent charity. b) Disclosures in respect of financial instruments have not been presented. c) No disclosure has been given for the aggregate remuneration of key management personnel, Basls of eonsolidation The consolidated financial statements present the results of the Royal Ulster Agriculiural Society and its subsidiaries as if they fornled a single entity, Intercompany transaclions and balances between group companies are therefore eliminated in full. A separate stalemenl of financial activities for the Society itself is noi presenled as the Society has taken advantage of ihe available exemptions. Specific judgements and estimales In preparing these financial statements the trustees have not had to make any significant judgements or estiniates. Income All Income is included in the statement of financia l 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 categories of income.. Gifts and donation5 are included in full in the statement of financial activities when r¢c¢ivable. 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 2023 ACCOUNTING POLICIES- continued Income- eontinued Annual subscriptions are recognised in full in the Statement of Financial Activities upon receipt. Life members. fees are recorded as deferred income and released to the Statement of Financial Aclivities at a rate equivalent to annual membership. Commercial income represents the invoiced value of services supplied during the year, excluding valu¢ added tax and is net of sales returns, trade discounts and rebates. Revenue is recognised when, and to the extent that, the group or parenl charity obtains the righi to consideration in exchange for its pcrformance. Expendilure Resources expended represent all costs incurred in the course of the group's activities 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 its activities and services for its beneficiaries. It includes both costs that ¢an be allocated directly to such activities and those costs of an indirecl nature necessary to support them. Governance costs include those incurred in the governance of th¢ group's assets and are associated with constitutional, statutory and slrategic requirements. Cost of generating funds include expenditure relati ng lo members, subscriptions and agricultural/equcs¢rian rental income which can be allocated directly to such activities and those Costs of an indirect nature n¢c¢ssary lo support them. Defined contribution pension schem¢s are operated on behalf of certain staff members. Coniributions are charged as incutted. Intanglble assets Intangible assets are stated at historic cost less accumulated depreciation. Intangible assets are included at purchase ¢05t, together with any incidental costs of acquisition. Depreciation is calculated to writ¢ off the c05t of intangible assets, less estirnaled residual values, on a straight-l ine basis over the expected useful economic lives of the assets concerned, The principal annual rates used are as follows: Trademarks Where the recoverable amount of an intangible asset is found to be below its net book value, the asset is written down to the recoverable amount, and the loss on impaiment is recognised in the Statement of Financial Activities. Tangible fixed assets Propety, plant and equipment are stated at cost less accumulated depreciation and accumulated impairn ent losses. Such c05t includes costs directly attributable to making the asset capable of operating as intended. Depreciation is provided at the following annual rates in order to write off each asset over its estimate useful life: Showgrounds Land held for development Buildings Plant, vehicles and equipment Nil Nil Page 21
ROYAL ULSTER AGRICULTURAL SOCIETY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2023 ACCOUNTING POLICIES- continued Investments Investments in subsidiaries are measured at cost less accumulated impairnient. Fixed Asset investments are stated at market value at the balance sheet date. The Statement of Financial Activities includes the net gains and losses arising on revalualions and disposals ihroughout the year. All gains and losses are taken to The Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sale5 proceeds and their opening carrying value or their purchase value if acquired subsequent to the first date of th¢ financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their canying value. Realised and unrealised investment gains and losses are combined in The Statement of Financial Activities. Stocks Stocks are valued at the lower of cost and net real isable value, after making due allowance for obsolete and slow moving items. Flnanelal Instruments All financial instruments of the group and parent charity are considered to meet the definition of basic fmancial instrumcnts. - Shorl-lerm debiors and creditors Debtors and creditors with no stated interesl rate and are receivable or payable on demand are recognised al transaction price, and subject to annual impairment reviews. Any losses arising on impairment are recognised in the profit and loss account. Cash and ¢a.yh equivalents Cash and cash equivalents comprise cash at bank and in hand. Taxatlon There is no liability to taxation due to the Society's charitable status. Foreign currencies Transactions denominated in foreign cuencieS are translated at the exchange rate at the date of transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchan ge ruling at the balance sheet date. The resulting gain or loss is recorded in the statement of financial activilies. Fund aecountlng The group ha5 various types of funds for which it is responsible and which require separate disclosure. Definitions of the various types of funds are as follows: Reslricledfunds Restricted fund5 are to be used for specified purposes as laid down by the donor. Expenditure which meets these criteria is identified to Ihe fund, together with a fair allocation of overheads and support costs. Unrestricledfund Unrestricted 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 2023 INCOME Notes Unrestricted Funds Restricted Tot81 Funds Funds 31.10.23 Total Funds 31.10.22 Voluntary income Members, subscriptions and donations 52,410 52,410 61,533 52,410 52,410 61,533 Activities for generatlng funds Commercial income Other income 2,522J40 212,631 2,522 J40 212,865 3,457,496 45,813 234 2 734 971 234 2 735,205 3 503.309 Income from eharltAble aetivities Balmoral Show income Winter Fair income Beef and Lamb income 2,742,259 328,439 22,311 3 093 009 2,742,259 328,439 22,311 3 093 009 2,498,215 259,077 28,665 2 785 957 5 880 390 234 5 880 624 6 350 799 EXPENDITURE Noles Unrestrleted Restrieted Total Funds Funds Fund$ 31.10.23 Total Funds 31.10.22 Cost of generating funds Members, subscriptions Commercial activity 96,969 1,981,007 2,077,976 96,969 1,981,007 2,077,976 59,195 2,402,650 2,461,845 Charitable activitles Agricultural shows Other charitable activity SUPPOrt costs 3,069,348 15,528 175 3,069,523 15,528 2,893,056 3 084 876 175 3 085 051 2 893,056 Other expenditure Centralised costs Investment expenditure 342,186 342,186 423,023 9,897 342 186 342 186 432 920 5,505,038 175 5,505 213 5,787,821 Page 23
ROYAL ULSTER AGRICULTURAL SOCIETY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2023 COMMERCIAL INCOME AND EXPENDITURE 31.10.23 31.10.22 Commercial income 2,522,340 2,522,340 3,457,496 3 457 496 Support costg Salaries and wages, labour and security Direct expense5 Office costs Establishment expenses Development costs (366,596) (267,493) (1,338,760) (1,973.663) (49,910) (28,334) (225,741) {133.160) 1981007 2 402 650 Net incom¢ 541333 1054 846 The income and expenditure totals above incorporale the profit and loss account of the Society's tradin&1 subsidiaries The King's Hall Exhibition & Conference Centre Limited, King's Hall Harberton Estates Limited and KH Balmoral Eslates Limiled. The financial year-end for all companie5 is 3 1st October 2023. EXPENDITURE ON CHARITABLE ACTIVITIES Notes Unrestrleted Restrleted Total Funds Funds Funds 31.10.23 Total Funds 31.10.22 Dlrect costs Prizes to exhibitors Ground preparation Exhibition stand preparation Judges, expenses Catering costs Advertising, promotion and printing Attrdctions and associated costs Cost of car parking facilities Showground cleaning Fees for services Miscellaneous 178,609 791,579 55,094 24,188 56,220 124,796 79,989 170,257 156,690 362,611 6,962 2,006,995 1,062,353 175 178,784 791,579 55,094 24,188 56,220 124,796 79,989 170,257 156,690 362,611 6,962 2,007,170 1,062,353 164,166 762,114 53,990 32,901 54,306 140,123 69.041 155,407 145,804 341,845 3,469 1,923,166 969,890 175 Support costs relating to agricultural shows Total expenditure relallng to agricultural shows 3,069,348 175 3,069,523 2,893,056 Page 24
ROYAL ULSTER AGRICULTURAL SOCIETY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2023 TOTAL EXPENDITURE Employment Depreciation Establishment costs Other costs Total 31.10.23 Total 31.10.22 Commercial activity Agricultural shows Other charitable activity SUPPOrt costs Centralis¢d costs Investment Expenditure 366,596 225,741 lJ88,670 1,981,007 2.402,650 379,653 367,024 214,431 2,108,415 3,069,523 2,893,056 45,603 18,225 48,669 112,497 59,195 127,159 142,732 57,256 15,039 342,186 423,023 9,897 919,011 509,756 515,053 3,560,793 5,505,213 5,787,821 EMPLOYEE COSTS Staff cost$ 31.10.23 31.10.22 Wages and salaries Social security Costs Other pension costs 745,810 69,140 78,442 682,301 71,361 71,456 Total payroll costs 893,392 825,118 Contract labour and other staff Costs 25,019 15,559 Total employment costs 919011 840 677 The average number of employees during the year were: 31.10.23 31.10.22 Monthly paid Weekly paid 15 14 21 19 The number of employees who received total employee benefits (excluding employer pension costs) of more than £60,0(M) is as follows: 31.10.23 31.10.22 £60,001- £70,000 £70,001- £80,000 £80,001- £90,000 £90.001- £100,000 £ioo,000- £110,000 Page 25
ROYAL ULSTER AGRICULTURAL SOCIETY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR EIYDED 31ST OCTOBER 2023 EIVIPLOYEE COSTS (continued) Employer pension contributions totalling £5,702 (2022.. £226) were made during the year on behalf of the higher paid employee. Compensation paid to key management personnel in the year to 31 st October 2023 was £ 85.553 (2022., £81 ,932). The Council member5 received £Nil remuneration during the year (2022- £Nil). Travel expenses totalltng £3,907 (2022: £1,683) were reimbursed to 10 (2022: 4) Council members during the year. Council member5, indemnity insurance has been purchased by the Society at a cost of £8,193 (2022.. £6,097). NET INCOME FOR THE YEAR Net Income is 51ated after charginW(credltlng): 31.10.22 31,10,22 Fees payable to the group's Auditor for the audit of the financial statements Fees payable to the group's Auditor for other services Depreciation - owned assets 24,150 1,575 509,508 23,000 1,500 498,715 Total net expenditure after transfers and unrealised gains was a surplus of £322,974 (2022: surplus of £424,885). No profits were retained in the subsidiaries, The operating surplus for unrestricted funds for the year was £322,915 (2022.. surplus of £424,845). The movement in the restricted funds was a net income of £59 (2022., income of £4 0). io, INTAIYGIBLE ASSETS Group and Society Trademarks COST At 31 st October 2022 and 31 st October 2023 AMORTISATION At 31 st October 2022 Charge for Year 1,860 248 At 31 st October 2023 NET BOOK VALUE At 31st October 2023 367 At 31 st October 2022 61S Page 26
ROY AL ULSTER AGRICULTURAL SOCIETY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2023 TANGIBLE FIXED ASSETS Group Improvements to land held under lease Land and buildings held for development Buildings Plant, vehicles and equipment Total COST At 31 October 2022 Additions Disposals 3,771,544 99,787 9,528,443 ,023,778 101,019 1,326,299 136,822 22,650,064 337,628 (1,101,067) (1,101,067) At 31 October 2023 3,871 J31 8,427,376 8,124,797 1,463,121 21,886,625 DEPRECIATION At 31 October 2022 Charge for Year Disposals 878,816 135,596 1,575,892 268,626 849,403 105,286 3,304,111 509,508 At 31 October 2023 1,014 412 1844518 3 813 619 NET BOOK VALUE At 31 October 2023 2 856,919 8 427 376 6 280 279 18 073 006 At 31 October 2022 2 892 728 9 528 443 6 447 886 476 896 19 345 953 Analysis of cost or valuation Cost Valuation 3,871 J31 1,480,355 6,947,021 8,124,797 1,463,121 14,939,604 6,947,021 31 8 427 376 8 124 797 1463 121 21886,625 Certain buildings were revalu¢d in October 2013 on the basis of valuation for existing use by BTW Shie Ils. The showgrounds were revalued by Simon Brien in October 2015 on the basis of open market value. The remain ing buildings were revalued in October 2017 on the basis of valuation for existing use by Colliers Intemalional. If land and buildings had not been revalued, they would have been included at the following amounts. 31.10.23 31.10.22 Net book value 6,905,528 6,905,528 Page 27
ROYAL ULSTER AGRICULTURAL SOCIETY NOTES TO THE CONSOLIDATFD FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2023 ii. TANGIBLE FIXED ASSETS (continued) Society Improvements to land held under lieenee Buildings Plant, vehicles and equipment Totsl COST At 31 October 2022 Additions Disposals 3,771,544 99,787 8,023,778 101,019 1,326,299 136,822 13,121,621 337,628 At 31 October 2023 31 8 124 797 1463 121 13 459 249 DEPRECIATION At 31 October 2022 Charge for Year Eliminated on Disposal 878,816 135,596 1,575,892 268,626 849,403 105,286 3J04,111 509,508 At 31 October 2023 1014 412 1844 518 954,689 3 813 619 NET BOOK VALUE At 31 October 2023 2 856 919 0 280 279 9,645 630 At 31 October 2022 2 892 728 6 447 886 476 896 9 817 510 12. FIXED ASSET IIYVESTMENTS Society Shares in group undertaking5 COST At 31 st October 2022 and 31 st October 2023 23 850 000 NET BOOK VALUF Al 31st October 2023 23 850,000 At 31 st October 2022 23 850 000 Page 28
ROYAL ULSTERAGRICULTURAL SOCIETY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR EIYDED 31ST OCTOBER 2023 12. FIXED ASSET INVESTMENTS {continued) The Society's investments at the Balance Sheet date in the share capital of companies comprise the following subsidiaries.. The Klng's Hall Exhibition and Conference Centre Llmlted Company number: N1033140 Registered office.. RUAS Office, Balmoral Park. Halftown Road, Lisburn, B7 5RD Nature of business.. Provision of event facilities /0 holding 100.00 Class of shares: Ordinary King's Hall Harberton Estates Llmlted Company number: N1627613 Registered office.. RUAS olce, 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 nurnber: N1648449 Registered otTice: RUAS Office. Balmoral Park, Halftown Road, Lisburn, BT27 5RD Nature of business.. Management of land held for developrnent /0 holding 100.00 Class of shares.. Ordinary The Council believe that ihe canying values of the investments are supported by the underlying net assets of each subsidiary. 13. FIXED ASSET INVESTMENTS Value brought forward Addltions Disposals Movement In cash Change in market value Value carrled forward Quoted Investments Cash held by investment brokers 5,563,980 322,134 1,728,138 (468,286) (52.437) 6,771 J95 3,175,948 2,853,814 5886114 1,728 138 468 286 9 947,343 The change in m8J*et value of investments during the year comprises all increases and decreases in the market value of invesÉments held at any time during the year. including profits and losses realised on sales of investments during the year. Page 29
ROYAL ULSTER AGRICULTURAL SOCIETY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2023 14. DEBTORS Group Society 31.10.23 31.10.22 31.10.23 31.10.22 Trade debtors Amounts owed from group undertakings Other debtors Other tax and social security Prepayments Accrued Income 302,424 826,905 192,580 1,217a58 355 210,229 587,187 94,169 93,815 15,637 79,077 85,645 967 483,205 97,380 82,647 1018 100 1,492 940 892 130 15. CREDITORS: amounts falling due wlthin one year Group Soelety 31.10.23 31.10.22 31.10.23 31.10.22 Trade creditors Amounts owed to group undertakings Other tax and social security Other creditors and accruals Payments received in advance 130,989 249,374 117,380 14,073,334 23,333 166,773 356,167 184,766 9,644,328 15,303 111,476 345,839 91,138 188.722 426,318 66,033 130.896 418,537 864 840 14 736 987 10 301712 DEFERRED INCOME Group and Soclely Life Members Composition Account At 31 st October 2022 Receipts in year Interest credited Utilised in year 30.615 9,287 541 (6,290) At 31st October 2023 34,153 Page 30
ROYAL ULSTER AGRICULTURAL SOCIETY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST OCTOBER 2023 17. ANALYSIS OF NET ASSETS BETWEEN FUNDS Group Unrestricted fund5 Reslrieted funds Total funds 31.10.23 Intangible fjxed assets Investments Tangible fixed assets Net current assets Deferred income 367 9,947,343 18,073,006 2,547,029 34,153 30 533 $92 367 9,947,343 18,073,006 2,562,660 34.153 30,549 223 15.631 15,631 18. UNRESTIUCTED FUNDS Group and Soclety General funds At 31st October 2022 Net movement in funds 30,210,677 322,915 At 31 st October 2023 30 533 592 19. RESTRICTED FUNDS The income funds of the Society include restricted funds comprising the following unexpended balance of donattons to be applied for specific purposes: Group and Soclety Movement in funds 1.11.22 Incoming Outgolng 31.10.23 W Fullerton Legacy John Kirkpatrick Legacy 10,000 5.572 150 84 (150) (25) 10,000 5,631 234 175 15,631 The Willle and Elsie Fullerton Bequest Willie and Elsie Fullerton bequest the sum to be invested and the income used to augment the Society, s funds. John Kirkpatrick Legacy Donation to the Society in memory of John Kirkpatrick. The legacy's annual proceeds to be used to prov ide 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 2023 20. FINANCIAL INSTRUMENTS Group 31.10.23 31.10.22 Flnanclal Assets Financial assets that are debt instruments measured at amortised cost 3,179,006 5,659,049 3,179,006 5,659,049 Flnanclal Ilabilities Financial liabilities measured at amortised cost 130,989 249,374 130 989 249,374 Financial assets measured at amortised cost comprise trade debtors and cash at bank. Financial liabilities measured at amortised cost comprise trade creditors. 21, RELATED PARTY DISCLOSURES The group has taken the exemption contained in FRS 102 Section 33.1 A - "Related Party Disclosure" not to disclose any transactions with its subsidiary undertakings or the associated undertakings of any wholly-owned group company on the grounds that the consolidated accounls of th e Royal Ulster Agricultufdl Society are publicly available. 22, CAPITAL COMMITMENTS At 315t October 2023, the Society had entered into a capital commitment which was contracted but not provided for in these financial statements of £NIL (2022.. £NIL). 23, TAXATION The Society is a registered charity and as such is entitled to certain tsx exemptions on income and profits from investments and surpluses on any trading activities carried on in furtherance of the charity's primary objectives, if these profits and suluseS are applied solely for charitable purposes. 24. ULTIMATE CONTROLLING PARTY The ultimate controlling paty is consid¢red to b¢ Council of the Royal Ulster Agricultural Society. Page 32