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12 34
Taylor
Weatherbys
Solicitors
Bankers
Peters
Independent
Chief
Louise
Stanstead
Registered Charity
Company
1134293 07073259
Chris
Edward Philip
Philip Anthea
Peter Sam Jonathan
Bryan Edmond
Paul
Julian
Philippa Trustees
Richard
REFERENCE
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Vinters,
Newton
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Page 1 THE THOROUGHBRED BREEDERS’ ASSOCIATION (A Company Limited by Guarantee)
TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2015
The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the audited financial statements of The Thoroughbred Breeders’ Association (the TBA), (the company) for the year ended 31 December 2015. The Trustees confirm that the Annual Report and financial statements of the company comply with the current statutory requirements, the requirements of the company’s governing document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).
Since the company qualifies as small under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director’s Report) Regulations 2013 is not required.
OBJECTIVES AND ACTIVITIES
Policies and objectives
The object of the charity is:
To encourage by means of the provision of educational or research facilities or otherwise, the science of producing and improving the Thoroughbred horse in Great Britain.
Strategies for achieving objectives
To help the TEA to achieve its mission, the three main strategic objectives are;
Education and Training
To provide support and direction for the Thoroughbred Breeding Industry’s education and training requirements via provision of a dedicated member of staff supported by a sub-committee with speciatist knowledge of this field. To work with recognised training providers to offer appropriate training courses for members of the public wishing to secure a career in the Industry and disseminate education, training and employment legislation information to breeders and members of the public via information in the monthly magazine the Thoroughbred Owner & Breeder Incorporating Pacemaker’, on the TEA website and via presentations and seminars. Veterinaiy Research
To identify and address the health and welfare requirements of the Thoroughbred horse, with particular close attention to veterinary science in areas such as improvement in practices associated with the breeding and the rearing of Thoroughbred horses with a view to producing an animal of sufficient fitness and soundness to withstand the requirements of a career in racing. The charity also funds research into the respective challenges of equine disease avoidance and treatment. It also acts as a link between the members of the breeding industry and scientific academies to ensure that research work is focused on providing practical and cost effective benefits where most needed and to fund appropriate research work accordingly.
Page 2
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to 3 THE THOROUGHBRED BREEDERS’ ASSOCIATION (A Company Limited by Guarantee)
TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2015
experienced breeders at the National Stud, on the subjects of conception and pregnancy in the broodmare, pedigrees and mating plans, and care of the foal from birth to weaning. These courses attracted a total of 116 delegates. A programme of visits and presentations to approximately 500 students at equine colleges also took place, with the aim of encouraging participation and increasing knowledge about the Thoroughbred breeding industry and the careers within it, as well as providing information on, and access to, the TEA’s young person’s club, Thoroughbred Club, which was launched in September 2015.
In support of employers, the TBA provided employment law, pensions and health and safety guidance, made available through the TEA website or directly mailed to members. The TEA also recognised and rewarded stud staff for their contribution to the industry through its own Stud Staff Award Scheme which culminated in an Annual Award being presented to an employee at the TEA Awards Dinner. Throughout the year, the Employment and Education Manager represented the breeding sector on racing industry education and welfare committees, to ensure that breeders and their needs were included in overarching education and welfare activities.
The Thoroughbred Club
The TEA created and launched The Thoroughbred Club (UC) in September 2015 with a contribution of £18,216 for the remainder of the year. The initiative employed a full time Executive for the Club, whose role was to implement the objectives of TTC Committee, being to encourage the involvement of young people in the bloodstock and greater industry areas and for the initiative to become the social, educational and professional club for young people within the industry. A bespoke website dedicated to HC was built and launched in November to coincide with the launch of the club to the public as one of the benefits to members. The dedicated website provides regular updates and articles on the club activities including the 5 events held for members throughout the year, the broodmares and foals available for members to follow and a number of educational blogs and video blogs reflecting on the careers available in the industry and advice to members embarking on a career.
Veterinary Research
In 2015 the TEA contributed £217,562 (f221,909 in 2014) in support of veterinary research. The TEA’s Veterinary Committee worked to implement its objectives which included the steering and funding of veterinary research, the maintenance of the welfare of the Thoroughbred, surveillance and control of infectious diseases and the provision of information, advice and guidance to TEA members on relevant veterinary matters.
The TEA provided £50,000 towards the work of the AHT’s Infectious Diseases Service (IDS), and maintained its on-going commitment to provide a contingency fund for the control and prevention of an equine exotic disease entering Great Eritain. The IDS funders have made a commitment to continue to fund this work on a rolling basis. The agreement runs until 2015.
The TEA continued to work collaboratively with the HELE’s Veterinary Advisory Committee to identify and support suitable aspects of veterinary research or research scholarships. A one year project to assess the umbilical cord by Doppler ultrasonography during pregnancy in Thoroughbred mares was funded by the TEA. This project was supported in response to significant evidence of umbilical cord torsion found at post mortem examinations of Thoroughbred foals. It is due for completion in mid-2016 and the information from it will be published in an appropriate peer reviewed journal and shared with TEA members. The TEA also funded a small project to identify prevalence of exposure to Lawsonia Intracellularis (a bacteria causing debilitating intestinal disease in young horses) amongst foals in the Newmarket area. This project is also due for completion in 2016 and the results will be published in a peer-reviewed journal and used to inform veterinary management of foal populations on stud farms.
The TEA also worked with the HELE to produce the industry Codes of Practice on Equine Infectious disease, a
Page 4 THE THOROUGHBRED BREEDERS ASSOCIATION (A Company Limited by Guarantee)
TRUSTEES REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2015 voluntary set of codes used to protect the industry against diseases with the potential to compromise horse welfare and disrupt industry activity. A hard copy of the Codes of Practice was circulated to all TBA members. Promotion of Awareness of the Breed
The TEA’s objective to promote the awareness of the breed is delivered through two strategies; Bloodstock Industry support which in 2015 totalled £212,115 (265,063 in 2014) and Marketing and Promotion, which in 2015 totalled £138,653 (134,021 in 2014).
The TBA continued to maintain its marketing and promotion function with regard to in-house activities in support of British Bloodstock and Breeders. In 2015 the TBA organised and promoted the Stallion Parade at the Tattersalls February Sale and co-ordinated and produced the NH Stallion Parade at Cheltenham Racecourse.
In order to drive new membership and establish the association’s identity throughout the world of racing and beyond the TBA distributes ongoing communications through a range of online and print platforms so that many more breeders can benefit from the membership offerings and support provided by the TEA.
Membership benefits were developed and promoted in 2015, in particular the TBA Buying Group (in association with Anglia Farmers). Much activity surrounded print advertising within membership publications and the Thoroughbred Owner & Breeder magazine to raise awareness of the service.
The new website was launched in the first quarter of 2015 to promote TBA activity and messages. It was regularly updated throughout the year and the TEA’s Twitter account was used to drive further traffic to the site.
Continued promotion through editorial and advertising took place through the Thoroughbred Owner and Breeder magazine.
Bloodstock industry support was delivered through race sponsorship, breeders incentives and PR campaigns.
Race sponsorship in 2015 included the high profile Atalanta Stakes at Sandown on 22nd August. A Group 3 race for fillies and mares, supporting the TEA’s objective to stage race opportunities to test future broodmares at the highest level. In addition, the TEA sponsored eight mares’ only races across the Flat racing calendar, thereby providing opportunities for mares to race more frequently and be tested as racehorses prior to their careers as broodmares.
National Hunt mares also benefitted from a co-sponsored EBF/TBA Mares’ Novice Chase series qualifiers and finale. The finale featured a Listed Chase at Cheltenham in April 2015 and the day also featured a TEA sponsored Mares’ Only Listed Hurdle race. The TBA and EBF joint sponsored two other significant races in the calendar in 2015, including a Mares Standard Open National Hunt Flat Race (Listed Race) at Sandown on 7th March and the Mares Only NH Novices Hurdle Final at Newbury on 21st March. The TEA was also the sole sponsor of a Mares’ Only Listed Hurdles race at Newbury in November. The majority of these contests were staged on feature race-days providing valuable opportunities and also highlighting the attraction of owning and racing mares.
Two NH social events took place in 2015. The inaugural NH Breeders’ Celebration Dinner took place in May on the eve of the DBS Spring Sales. The event was a huge success; supporting, promoting and recognising British NH achievements from the 2014-2015 season. The second event, NH ‘Stars of Tomorrow’ Foal Show, was held at Bangor-on-Dee Racecourse on 26th July. The show provided an excellent opportunity for mare owners to showcase their young stock.
Mare Owners’ Prize Scheme (NH MOPS) gained Levy Board approval and funding in the last quarter of 2015. The last six weeks of the calendar year the TEA promoted the new initiative and accepted registrations ahead of
Page 5 THE THOROUGHBRED BREEDERS’ ASSOCIATION (A Company Limited by Guarantee)
TRUSTEES REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2015 the scheme launch scheduled for 1st January 2016. The scheme aims to; improve demand at sales for British- bred or sired fillies aimed at NH racing, maintain the NH racing programme, encourage trainers to race mates and more frequently, and ensure that more mates are tested as NH racehorses prior to their careers as broodmares.
The findings of the Stayers Report were announced in April 2015 at a media launch in London. The study enabled the TBA to set new objectives and strategies with regards to longer distance Thoroughbred horses, in order to overcome the difficulties outlined in the Flat race programme.
The TBA worked with the BHA and BEBF to create and deliver a new programme of ten maiden races, for horses by sires who won over ten furlongs or further, to be introduced in the 2016 flat racing season. Encouraged by the TBA, the European Pattern Committee also adopted a commitment to ensure the staying programme continued to provide opportunities across Europe.
In 2015 the TBA campaigned Plus 10 to include prizes for breeders, irrespective of whether subsequent owners continued to pay the registration fee.
FINANCIALREVIEW
Financial review
The results for the year are set out in the attached financial statements. Total income amounted to £1,231,154 (2014 -£1,105,260) which, after total expenditure of £991,788 (2014 -£1,061,147), resulted in net income for the year of £239,366 (2014 -44,113).
As at 31 December 2015 aggregate fund balances amounted to £2,306,104 (2014 -£2,066,738).
Reserves policy
The TBA’s Reserves Policy is managed by the Policy and Business Strategy Committee and ratified by the Board. In forming the policy the TBA aims to ensure that the reserves level matches the TBA’s needs at the time. In setting this policy the TBA assesses the reliability of future income streams, reviews committed expenditure and the likelychanges in the main source of income and assesses how the Charity would cope with changes in its main source of income and the likelihood of the charity’s needs and the consequences of the TBA not having been able to meet them.
The level of reserves includes provision for twelve month’s running costs/provision for closure costs including redundancy payments and a ring-fenced element for the discretionary use by the Board in the event of a disease outbreak requiting central funding.
Principal funding
The TBA’s principal funding is derived from the Voluntary Sales Levy, together with subscriptions and publications income.
Page 6 THE THOROUGHBRED BREEDERS ASSOCIATION (A Company Limited by Guarantee)
TRUSTEES REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2015
PLANS FOR FUTURE PERIODS
TBA’s overall objectives are unchanged and the Association’s plans for future periods reflect this situation and were re-affirmed by the TBA Board. The TBA will continue to monitor external factors which could present threats or challenges to British breeders, their stock and businesses.
During 2015 a dedicated campaign to increase membership numbers through various initiatives met with some success, although it was apparent that both the declining commercial returns, coupled with an ageing membership profile, created significant challenges to membership recruitment. Membership recruitment was delivered by the Marketing Promotion and Membership sub-Committee in 2015. However, numbers continued to decline and at the end of December 2015 the total amount of TBA members stood at 1971 (2112 in 2014). In 2016 the sub-committee propose to communicate the expanded range of members’ benefits to assist recruitment of new TBA members. These are expanded upon in this section.
Education and Employment
For 2016, the core activities of providing guidance and support to members on Health and Safety, pensions and employment law will continue. The programme of courses and seminars will be extended to seven individual events for 2016, including regional seminars taking place in the North, South West and South East to ensure accessibility for all TBA members. The process of endorsement by Awarding Body lst4Sport will be applied to all appropriate courses and seminars, giving them recognised approval status. The TBA has also committed to provide approximately £70K funding towards the National Stud Apprenticeship course in 2016, to support this opportunity for young people to receive adequate training prior to entering the workplace. Careers marketing and industry recruitment activities will continue through the activities of the Education and Employment Committee and in partnership with the TBA’s newly established club for young people, The Thoroughbred Club. The TBA willalso continue to encourage and support the recognition of Stud Staff, through its Award Scheme.
The Thoroughbred Club
For 2016, the core objectives for TTC are to continue to increase membership numbers, ensure members are attending the events held and to ensure that the website is being used and content is available for members. An additional event has been added to the list, a Careers Course willbe held in November for members and other delegates from the industry and wider industry sector, funding for the course will be applied for from the Racing Foundation. The benefits package for UC members will be further extended to include discounts at racecourses and a number of broodmares and a horse in training for the club members to follow to gain further insight into the industry. The club is also aiming to further establish itself in the industry through continuing to build upon its TTC Supporting Partners, this willenable the club to receive further recognition from the industry and grow in numbers.
Veterinary Research
In 2016 the TBA will provide £50,000 towards the work of the AHI’s Infectious Diseases Service (IDS), and maintain its on-going commitment to provide a contingency fund for the control and prevention of an equine exotic disease entering Great Britain.
The TBA Veterinary Committee will continue to stimulate and support equine veterinary research in fields of importance to Thoroughbred breeders by funding appropriate projects through the HBLB’s Veterinary Advisory Committee (VAC) scheme. The TBA will co-fund a three year post-doctoral research project due to start in September 2016 entitled “Equine host-parasite interactions on Thoroughbred Studs” to be undertaken by Laura Peachey at the University of Liverpool, which willalso be co-funded by the HBLBand European Breeders’ Fund (f117K over 3 years).
Page 7 THE THOROUGHBRED BREEDERS’ ASSOCIATION (A Company Limited by Guarantee)
TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2015
In addition to supporting veterinary research, The TBA Veterinary Committee has identified specific objectives of monitoring and maintaining the welfare of the Thoroughbred specifically in relation to genetics and performance profiling and anabolic steroids; participating in disease monitoring and control; working with the HELE to produce and distribute the Codes of Practice to all members; and disseminating relevant veterinary information via courses, seminars, special forums and printed material.
Promotion and Awareness of the Breed
The Communication and Marketing objectives for 2016 willbe to continue to heighten the profile of the TBA and to establish the TBA as a brand and association that exists to support the breeding of quality bloodstock and assist our members and the industry in all areas of Thoroughbred Breeding.
The TEA has an impressive portfolio of membership benefits, events, educational forums and advantage schemes which are designed to provide the knowledge, tools, advice and support to help breeders be more productive and profitable whilst simultaneously enjoying the vital role they have within the world of racing. The TEA plans to ensure all these services and benefits are widely communicated throughout the industry.
Encouraged by the TEA, the BHA commenced a study in late 2015 to review the detailed landscape for fillies within the Flat race programme. The culmination of this body of work being designed to upliftthe potential value of the fillyby encouraging continued investment, and by enhancing the volume and quality of those in training. The findings of the Fillies and Mares Review will be announced at a launch event in 2016. The TBA will fund and deliver a communications campaign throughout the second half of the year, to re-enforce key messages from the review in order to fulfilthe above objectives.
Further developing our online offering is a key objective for 2016. The re-designed TBA website launched in 2015 and was populated with essential information about the TEA’s services and updated regularly with news items and event details. 2016 will see the development of the members’ area of the site that will feature exclusive news, reference documents and veterinary articles. An online booking facility for TEA hosted events is also planned. It is hoped the TBA website will become an online hub’ for members to access all of their breeding industry information needs.
The TBA willreview the race sponsorship portfolio once again in early 2016 to ensure that funds are directed to areas of the programme which require industry support — with particular emphasis on opportunities for the improvement of a diverse Thoroughbred breed. The TEA willcontinue to support events for mares and stayers, including at grass roots level (Point-to-Points). The TEA will also remain committed to the breed with the financial support for the Retraining Of Racehorses (R0R) Challenge Series which encourages Thoroughbred ownership for competition and leisure purposes.
Whilst increasing members and membership communications is once again an important objective for the TBA, during 2016 the TEA willaim to build on their established industry reputation and relationships. A strategy willbe developed to provide a framework for communications and PR to increase awareness and understanding of the TBA’s activities amongst stakeholders.
The TBA will seek a more formal working relationship with GERI to promote the success of British bred Thoroughbreds throughout 2016. The campaign’s activity will be predominantly on digital platforms including social media, but will be supported by print advertorial where necessary. The TBA willalso continue to support other aspects of bloodstock promotion including co-hosting inward buyers’ visits, co-ordination of stallion parades and other initiatives in support of British breeders.
Page 8
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in 9 THE THOROUGHBRED BREEDERS ASSOCIATION (A Company Limited by Guarantee)
TRUSTEES REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2015
The British Horseracing Authority — The TBA is a member of the BHA and is represented on the stakeholder group by the Chairman. The TEA and BHA also collaborate on a number of racing related issues which affect breeders and the TEA is represented on the relevant BHA committees.
The Horserace Betting Levy Board — The TEA works with the HBLB in support of its objectives: Education, Veterinary Research, Bloodstock Promotion and Improvement of the breed. The HBLB provides funding for all objectives and the TBA in turn allocates a portion of its veterinary research budget to co-fund specific scientific research projects in support of the Thoroughbred breed and related stud farm activities.
The Racehorse Owners’ Association — The TEA and the ROA own a mutual trading company which publishes and circulates the magazine ‘Thoroughbred Owner and Breeder, incorporating Pacemaker.’ All income and expenditure for the company is divided between the two Associations, with magazine production and distribution costs shared as a percentage of respective membership numbers.
Thoroughbred Owner and Breeder Ltd - The TEA Chief Executive and Philip Newton are directors of the company.
Horsemen Limited (The Horsemen’s Group) - The TEA Chairman Julian Richmond-Watson is a director of Horsemen Limited.
British Horse Industry Confederation - The TEA Chief Executive is the Chairman of the company.
Newmarket Racecourse - The TEA sponsor a race at Newmarket. The TBA Chairman Julian Richmond- Watson is chairman of Newmarket Racecourse.
Risk management
The Trustees have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the company, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.
An Annual Review, of the risks the charity may face, is conducted by the Policy and Business Strategy Committee with any subsequent changes updated in the management register.
A key element of the management of financial risk is the setting of a reserves policy, which is regularly reviewed by the Trustees as a result of the charity’s reliance on a high level of voluntary donations. The TEA’s reserves policy provides for cash reserves of not less than twelve month’s overall expenditure for the charity. Details are provided under Reserves Policy above.
Public benefit
The trustees confirm that they have referred to the Charity Commission’s guidance on public benefit when reviewing the charity’s aims and objectives and in planning future activities. The Thoroughbred Breeders’ Association is a registered charity whose charitable purpose defined within the Charities Act 2011 is to encourage by means of the provision of educational or research facilities or otherwise the science of producing and improving the thoroughbred horse in Great Britain.
The charity provides public benefit as follows:
Page 10 THE THOROUGHBRED BREEDERS ASSOCIATION (A Company Limited by Guarantee)
TRUSTEES REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2015
• Thoroughbred Breeders — by means of training, education and promotion. • Equine Research — to oversee the health and welfare requirements of the Thoroughbred horse with particular attention to veterinary science in areas such as the improvement in practices associated with the breeding and rearing of Thoroughbred horses. • Race-going general public — through the production of durable and quality bloodstock.
In addition, the charity:
• Maintains vigilance over Government and EU policies which affect British breeding • Continues to fund veterinary research vital to the industry • Continually raises awareness of the importance of the education of breeders and their staff (including stud staff welfare) • Continues to improve racing opportunities for mares to test their ability prior to breeding, promote British bred horses and raise awareness overseas.
The achievement of public benefit through the pursuit of the Charity’s stated purposes has been and will continue to be a central focus for the Trustees when making decisions with regard to the key strategies and policies of the Charity.
Trustees responsibilities statement
The Trustees (who are also directors of The Thoroughbred Breeders’ Association for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to: • select suitable accounting policies and then apply them consistently; • observe the methods and principles in the Charities SORP; • make judgments and accounting estimates that are reasonable and prudent;
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company willcontinue in operation.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Page 11 THE THOROUGHBRED BREEDERS’ ASSOCIATION (A Company Limited by Guarantee)
TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2015
Disclosure of information to auditor
Each of the persons who are Trustees at the time when this Trustees Report is approved has confirmed that: • so far as that Trustee is aware, there is no relevant audit information of which the charitable company’s auditors are unaware, and • that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any information needed by the charitable company’s auditors in connection with preparing their report and to establish that the charitable company’s auditors are aware of that information.
This report was approved by the Trustees on 22 June 2016 and signed on their behalf by:
Richmond-Watson, irma n
Page 12 THE THOROUGHBRED BREEDERS’ ASSOCIATION (A Company Limited by Guarantee)
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE THOROUGHBRED BREEDERS’ ASSOCIATION
We have audited the financial statements of The Thoroughbred Breeders’ Association for the year ended 31 December 2015 set out on pages 15 to 34. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an Auditors’ Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinion we have formed.
RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND AUDITORS
As explained more fully in the Trustees’ Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.
Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.
SCOPE OF THE AUDIT OF THE FINANCIALSTATEMENTS
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Trustees; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Trustees’ Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
Page 13 THE THOROUGHBRED BREEDERS ASSOCIATION (A Company Limited by Guarantee)
INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF THE THOROUGHBRED BREEDERS ASSOCIATION
Opinion on financial statements
In our opinion the financial statements: • give a true and fair view of the state of the charitable company’s affairs as at 31 December 2015 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and • have been prepared in accordance with the requirements of the Companies Act 2006.
OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006
In our opinion the information given in the Trustees’ Report, incorporating the Strategic Report, for the financial year for which the financial statements are prepared is consistent with the financial statements.
MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if,in our opinion: • adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or • the financial statements ate not in agreement with the accounting records and returns; or • certain disclosures of trustees’ remuneration specified by law are not made; or • we have not received all the information and explanations we require for our audit; or • the Trustees were not entitled to take advantage of the small companies’ exemption from the requirement to prepare a Strategic Report.
Paul Chapman (Senior Statutory Auditor) for and on behalf of
Peters Elworthy & Moore Chartered Accountants Statutory Auditors Salisbury House Station Road Cambridge CB1 2LA Date: 29 June 2016
Page 14 ______
THE THOROUGHBRED BREEDERS ASSOCIATION (A Company Limited by Guarantee)
STATEMENT OF FINANCIALACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2015
Restricted Unrestricted Total Total funds funds funds funds 2015 2015 2015 2014 Note £ £ £ £ INCOME FROM:
Donations, grants and voluntary levies 2 83,000 838,625 921,625 795,154 Other trading activities 3 - 36,802 36,802 49,633 Investments 4 - 40,403 40,403 35,639 Charitable activities 5 - 232,324 232,324 224,834
TOTAL INCOME 83,000 1,148,154 1,231,154 1,105,260
EXPENDITURE ON: Raising funds 6 9,262 104,581 113,843 108,138 Charitable activities 7 66,435 811,510 877,945 953,009
TOTAL EXPENDITURE 75,697 916,091 991,788 1,061,147
NET INCOME FOR THE FINANCIALYEAR 7,303 232,063 239,366 44,113
NET MOVEMENT IN FUNDS 7,303 232,063 239,366 44,113
RECONCILIATION OF FUNDS:
Total funds at 1 January 2015 - 2,066,738 2,066,738 2,022,625
7,303 2,298,801 2,306,104 2,066,738 TOTAL FUNDS AT 31 DECEMBER 2015
Allactivities relate to continuing operations.
The notes on pages 18 to 34 form part of these financial statements.
Page 15 THE THOROUGHBRED BREEDERS’ ASSOCIATION (A Company Limited by Guarantee) REGISTERED NUMBER: 07073259
BALANCE SHEET AS AT 31 DECEMBER 2015
2015 2014 Note £ £ £ £ FIXED ASSETS Tangible assets 14 2,709 4,519 Investments 15 100,000 100,000 Programme related investments 16 40,000 60,000
Total investments 140,000 160,000
142,709 164,519 CURRENT ASSETS Stocks 17 500 500 Debtors 18 63,097 70,925 Investments 19 1,512,686 1,486,948 Cash at bank and in hand 740,369 419,635
2,316,652 1,978,008 CREDITORS: amounts falling due within one year 20 (153,257) (75,789)
NET CURRENT ASSETS 2,163,395 1,902.219
NET ASSETS 2,306,104 2,066,738
CHARITY FUNDS Restricted funds 21 7,303 Unrestricted funds 21 2,298,801 2,066,738
TOTAL FUNDS 2,306,104 2,066,738
The financial statements were approved and authorised for issue by the Trustees on 22 June 2016 and signed on their behalf, by:
JuliaWRichmond-Watson, Chairman
The notes on pages 18 to 34 form part of these financial statements.
Page 16 THE THOROUGHBRED BREEDERS’ ASSOCIATION (A Company Limited by Guarantee)
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2015
2015 2014 Note £ £ Cash flows from operating activities Net cash provided by operating activities 23 306,069 16,191
Cash flows from investing activities: Dividends, interest and rents from investments 40,403 35,639 Purchase of property, plant and equipment - (1,448) Purchase of investments (345,583) (701 660)
Net cash used in investing activities (305,180) (667,469)
Change in cash and cash equivalents in the year 24 889 (651,278) Cash and cash equivalents brought forward 739,480 1,390,758
Cash and cash equivalents carried forward 24 740,369 739,480
Page 17 THE THOROUGHBRED BREEDERS ASSOCIATION (A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015
ACCOUNTING POLICIES
1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS
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 the Financial Reporting Standard applicable inthe UKand Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland fFRS 102) and the Companies Act 2006
The Thoroughbred Breeders Association meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
The most significant areas of adjustment and key assumptions that affect items in the accounts relate to recognition of income from voluntary levies on thoroughbred horse sales. These are recognised when there is certainty of receipt.
1.2 RECONCILIATION WITH PREVIOUS GENERALLY ACCEPTED ACCOUNTING PRACTICE
In preparing these accounts, the Trustees have considered whether in applying the accounting policies required by FRS 102 and the Charities SORP FRS 102 the restatement of comparative items was required.
No restatements were required.
1.3 COMPANY STATUS
The company is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.
1.4 FUND ACCOUNTING
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the company and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
Page 18 THE THOROUGHBRED BREEDERS ASSOCIATION (A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015
ACCOUNTING POLICIES (continued)
1.5 INCOME
All income is recognised once the company has entitlement to the income, it is probable that the income willbe received and the amount of income receivable can be measured reliably.
Donations and income from volutary levies are recognised when the company has been notified in writing of both the amount and settlement date.
Income from grants is recognised when the company has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income willbe received and the amount can be measured reliably and is not deferred.
Income from training courses and meetings and event income is recognised upon receipt of a sales order.
income from subscriptions is recognised upon receipt or when there is certainty of receipt.
1.6 INTEREST RECEIVABLE
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the company; this is normally upon notification of the interest paid or payable by the Bank.
1.7 EXPENDITURE
Expenditure is recognised once there is a legal or constructive obligation to make payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated to the applicable expenditure headings.
Support costs are those costs incurred directly in support of expenditure on the objects of the company. Governance costs are those incurred in connection with administration of the company and compliance with constitutional and statutory requirements. Governance costs and support costs have been allocated on a basis consistent with the use of resources which principally is derived from time spent in different activities.
Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled.Grants offered subject to conditions which have not been met at the year end ate noted as a commitment, but not accrued as expenditure.
Irrecoverable VAT is charged against the expenditure heading for which it was incurred.
1.8 OPERATING LEASES
The charity classifies the lease of premises, franking machine and photocopier as operating leases as the title to the asset in each case reamains with the lessor. Rentals under operating leases are charged to the Statement of Financial Activities on a straight line basis over the lease term.
Page 19 THE THOROUGHBRED BREEDERS ASSOCIATION (A Company Limited by Guarantee)
NOTES TO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015
ACCOUNTING POLICIES (continued)
1.9 TANGIBLE FIXED ASSETS AND DEPRECIATION
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Tenants improvements to - over the period of the lease property Office equipment - over 5 years
1.10 FIXEDASSET INVESTMENTS
Unlisted fixed asset investments are carried at historical cost less any impairment provision.
1.11 INVESTMENT IN JOINT VENTURE
The joint venture, Thoroughbred Owner and Breeder Limited, established in 2005, has been incorporated into these financial statements. Given the nature of the joint venture’s activities, all TBA contributions towards the operating costs of the company have been treated as costs of the TBA within ‘expenditure on charitiable activities’ in the Statement of Financial Activities.
1.12 STOCKS
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
1.13 DEBTORS
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount repaid net of any trade discounts due.
1.14 CURRENT ASSET INVESTMENTS
Current asset investments comprise fixed rate bonds with a maturity of less than one year held for investment purposes rather than to meet short term cash commitments as they fall due.
1.15 CASH AT BANK AND IN HAND
Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
1.16 CREDITORS AND PROVISIONS
Creditors and provisions are recognised where the company has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
Page 20 THE THOROUGHBRED BREEDERS’ ASSOCIATION (A Company Limited by Guarantee)
NOTES TO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015
1. ACCOUNTING POLICIES (continued)
1.17 FINANCIALINSTRUMENTS
The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
1.18 PENSIONS The company contributes to a group personal retirement plan in respect of its employees. The pension charge represents contributions payable by the company to the scheme.
2. INCOME FROM DONATIONS, GRANTS AND VOLUNTARYLEVIES Restricted Unrestricted Total Total funds funds funds funds 2015 2015 2015 2014 £ £ £ £ Donations - 8,897 8,897 1,154 Grants 83,000 - 83,000 86,000 Voluntary levies - 829,728 829,728 708,000
Total donations and legacies 83,000 838,625 921,625 795,154
In 2014, £86,000 of the total income was restricted and £709,154 was unrestricted.
3. OTHER TRADING ACTIVITIES Restricted Unrestricted Total Total funds funds funds funds 2015 2015 2015 2014 £ £ £ £
Meetings and event income - 36,802 36,802 49,633
In 2014, all of the meetings and event income was unrestricted.
Page 21 THE THOROUGHBRED BREEDERS’ ASSOCIATION (A Company Limited by Guarantee)
NOTES TO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015
4. INVESTMENT INCOME Restricted Unrestricted Total Total funds funds funds funds 2015 2015 2015 2014 £ £ £ £
Investment income - 2,500 2,500 2,500 Bank interest receivable - 37,903 37,903 33,139
- 40,403 40,403 35,639
In 2014, all of the investment income was unrestricted.
5. INCOME FROM CHARITABLE ACTIVITIES Restricted Unrestricted Total Total funds funds funds funds 2015 2015 2015 2014 £ £ £ £
Subscriptions and publications income - 211,313 211,313 210,144 Training courses - 21,011 21,011 14,690
- 232,324 232,324 224,834
In 2014, all of the income from charitable activities was unrestricted.
6. EXPENDITURE ON RAISING FUNDS Restricted Unrestricted Total Total funds funds funds funds 2015 2015 2015 2014 £ £ £ £
Fundraising and publicity - 27,607 27,607 48,011 Meeting and events costs 9,262 76,974 86,236 60,127
9,262 104,581 113,843 108,138
In 2014, £12,632 of the costs of activities for generating funds related to restricted funds and £95,506 related to unrestricted funds.
Page 22 THE THOROUGHBRED BREEDERS ASSOCIATION (A Company Limited by Guarantee)
NOTES TO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015
7. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES
Restricted Unrestricted Total Total funds funds funds funds 2015 2015 2015 2014 £ £ £ £
Research - 217,562 217,562 221,909 Education 66,435 176,359 242,794 247,340 Marketing and promotion - 138,653 138,653 134,021 Bloodstock industry support - 212,115 212,115 265,063 Economic survey - - - 19,349
66,435 744,689 811,124 887,682
In 2014, £73,368 of the expenditure on charitable activities was restricted and £814,314 was unrestricted.
8. ANALYSIS OF RESOURCES EXPENDED BY ACTIVITIES Activities Grant undertaken funding of Support directly activities costs Total Total 2015 2015 2015 2015 2014 £ £ £ £ £ Research 7,950 60,515 167,020 235,485 238,240 Education 112,448 - 150,347 262,795 265,542 Marketing and promotion - - 150,075 150,075 143,884 Bloodstock industry support 212,115 - 17,475 229,590 284,570 Economic Survey 20,773
Total 332,513 60,515 484,917 877,945 953,009
9. DIRECT COSTS Bloodstock Total Total Research Education industry 2015 2014 £ £ £ £ £ Production and distribution of magazine 7,950 7,950 15,900 36,648 Stud staff training scheme 40,429 40,429 41,831 Consultancy 19,349 Marketing and promotion 212,115 212,115 265,063 Wages and salaries 54,815 - 54,815 52,655 National insurance 5,527 - 5,527 5,568 Pension cost 3,727 - 3,727 3,684
7,950 112,448 212,115 332,513 424,798
Page 23 THE THOROUGHBRED BREEDERS’ ASSOCIATION (A Company Limited by Guarantee)
NOTES TO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015
10. ANALYSIS OF GRANTS Grants to Grants to Institutions Individuals Total Total 2015 2015 2015 2014 £ £ £ £ Grants, Research 59,715 800 60,515 60,125
Grants to institutions comprises £9,715 (2014 - £9,525) granted to the Horserace Betting Levy Board - Special Project and £50,000 (2014 -£50,000) granted to the Animal Health Trust for Diagnostic Services.
Page 24 THE THOROUGHBRED BREEDERS’ ASSOCIATION (A Company Limited by Guarantee)
NOTES TO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015
11. SUPPORT COSTS Marketing and Total Total Governance Research Education promotion 2015 2014 £ £ £ £ £ £ Property costs - 8,121 8,121 8,121 24,363 24,850 Library and office expenses - 8,813 8,812 8,812 26,437 29,674 Legal and professional - 5,503 5,504 5,504 16,511 11,739 Miscellaneous expenditure - 1,075 1,076 1,076 3,227 3,090 Printing and stationery - 2,711 2,711 2,711 8,133 8,452 Computer costs - 1,314 1,313 1,313 3,940 7,363 EFTBA subscription cost - - - 8,307 8,307 8,742 lOB investment impairment and interest written off 7,500 7,500 7,500 22,500 22,500 Consultancy 5,672 5,671 5,671 17,014 22,394 Auditors’ remuneration 8,270 - 8,270 8,070 2014 International Breeders’ Meeting UK costs 2,005 2,006 2,006 6,017 18,851 Meetings, committee and travel 18,490 - - 18,490 18,339 Accountancy and tax advisory services 2,570 - - 2,570 2,560 Wages and salaries 32,076 90,503 74,460 74,460 271,499 237,168 National insurance 3,234 9,123 7,506 7,506 27,369 25,083 Pension cost 2,181 6,153 5,063 5,063 18,460 16,594 Depreciation - 604 603 603 1,810 2,617
66,821 149,097 130,346 138,653 484,917 468,086
Support costs have been allocated on a basis consistent with the use of resources which principally is derived from time spent in different activities. Governance costs have been allocated to research, education and marketing and promotion in proportion to the other total costs incurred on each activity.
Page 25 THE THOROUGHBRED BREEDERS ASSOCIATION (A Company Limited by Guarantee)
NOTES TO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015
12. NET INCOMEI(EXPENDITURE)
This is stated after charging:
2015 2014 £ £ Depreciation of tangible fixed assets: - owned by the charity 1,810 2,617 Auditors remuneration 8,270 8,070 Auditors’ remuneration - non-audit 2,570 2,560
Page 26 THE THOROUGHBRED BREEDERS ASSOCIATION (A Company Limited by Guarantee)
NOTES TO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015
13. STAFF COSTS Staff costs were as follows:
2015 2014 £ £ Wages and salaries 326,314 289,823 Social security costs 32,896 30,651 Other pension costs 22,187 20,278
381,397 340,752
The average monthly number of employees was: 7 (2014: 6) and the average monthly number of employees during the year expressed as full time equivalents was as follows (including casual and part- time staff):
2015 2014 No. No. Research I I
Education 1 1 Marketing and promotion 3 2 Management and administration 2 2
7 6
The number of higher paid employees was:
2015 2014 No. No.
In the band £80,001 - £90,000 0 1 In the band £90,001 -£100,000 1 0
1 1
The key management personnel of the charity comprise the trustees and the Chief Executive Officer. The total employee benefits of the key management personnel of the charity were £94,173 (2014 - £89,730).
The charity trustees were not paid or received any other benefits from employment with the company in the year (2014 - £nil).
6 trustees were reimbursed expenses or had their expenses paid directly during the year amounting to £4,326 (2014 - 5 trustees -£5,901)
Page 27 THE THOROUGHBRED BREEDERS’ ASSOCIATION (A Company Limited by Guarantee)
NOTES TO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015
14. TANGIBLE FIXED ASSETS Office equipment Library Total £ £ £ COST
At 1 January 2015 and 31 December2015 18,797 100 18,897
DEPRECIATION
At 1 January2015 14,378 - 14,378 Chargefortheyear 1,810 - 1,810
At 31 December2015 16,188 - 16,188
NET BOOK VALUE At31 December2015 2,609 100 2,709
At31 December2014 4,419 100 4,519
15. FIXED ASSET INVESTMENTS Unlisted securities £ COST
At 1 January 2015 and 31 December2015 100,000
Page 28 THE THOROUGHBRED BREEDERS ASSOCIATION (A Company Limited by Guarantee)
NOTES TO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015
16. PROGRAMME RELATED INVESTMENTS Unquoted programme related investment £ MARKET VALUE
At 1 January 2015 and 31 December 2015 100,000
IMPAIRMENT Ati January2015 40,000 Charge for the year 20,000
At 31 December 2015 60,000
NET BOOK VALUE At 31 December 2015 40,000
At 31 December 2014 60,000
PROGRAMME RELATED INVESTMENTS COMPRISE:
Other Total 2015 2014 £ £ Unsecured loan to Thoroughbred Owner and Breeder Limited 40,000 60,000
The unquoted programme related investment represents an unsecured loan to Thoroughbred Owner and Breeder Limited, a company in which the Association has a 50% interest (see note 26 below). This loan bears interest at 2% per annum over the Base Rate of Weatherbys Bank Limited and is repayable no later than 22 December 2018.
The TEA Board consider that the primary purpose of the loan has been fulfilled, with an enhanced publication at a substantially lower cost, providing a materal advantage to its members.
17. STOCKS 2015 2014 £ £ Finished goods and goods for resale 500 500
Page 29 THE THOROUGHBRED BREEDERS’ ASSOCIATION (A Company Limited by Guarantee)
NOTES TO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015
18. DEBTORS 2015 2014 £ £ Trade debtors 6,774 135 Loan to The Horsemen’s Group 15,909 15,909 Other debtors 30,456 20,529 Prepayments and accrued income 9,958 34,352
63,097 70,925
The loan to The Horsemen’s Group is unsecured and repayable on demand. There will be no interest on the loan so long as there is no default by The Horsemen’s Group in respect of its obligations under the Loan agreement.
19. CURRENT ASSET INVESTMENTS 2015 2014 £ £ Fixed rate bonds 1,512,686 1,486,948
20. CREDITORS: AMOUNTS FALLING DUE WITHINONE YEAR 2015 2014 £ £ Trade creditors 74,605 28,650 Other taxation and social security 15,059 10,997 Grant commitments 22,215 12,500 Other creditors 18,550 10,034 Accruals 22,828 13,608
153,257 75,789
Page 30 THE THOROUGHBRED BREEDERS ASSOCIATION (A Company Limited by Guarantee)
NOTES TO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015
21. STATEMENT OF FUNDS Brought Incoming Resources Carried Forward resources Expended Forward £ £ £ £ DESIGNATED FUNDS TOB Magazine Investment Fund 60,000 - (20,000) 40,000
GENERAL FUNDS General Funds 2,006,738 1,148,154 (896,091) 2,258,801
Total Unrestricted funds 2,066,738 1,148,154 (916,091) 2,298,801
RESTRICTED FUNDS
Stud Staff Training - 73,000 (73,000) - Stud Farm Injury and Accident Survey - 10,000 (2,697) 7,303
- 83,000 (75,697) 7,303
Total of funds 2,066,738 1,231,154 (991,788) 2,306,104
The designated TOB Magazine Investment Fund represents the IBA’s investment in Thoroughbred Owner and Breeder Limited (see note 18 above).
The restricted funds represent funding from the Horserace Betting Levy Board (HBLB)for the Stud Staff Training Project and funding from the Racing Foundation for the Stud Farm Injury and Accident Survey.
22. ANALYSIS OF NET ASSETS BETWEEN FUNDS Restricted Unrestricted Total Total funds funds funds funds 2015 2015 2015 2014 £ £ £ £
Tangible fixed assets - 2,709 2,709 4,519 Fixed asset investments - 100,000 100,000 100,000 Programme related investments - 40,000 40,000 60,000 Current assets 7,303 2,309,349 2,316,652 1,978,008 Creditors due within one year - (153,257) (153,257) (75,789)
7,303 2,298,801 2,306,104 2,066,738
Page 31 THE THOROUGHBRED BREEDERS ASSOCIATION (A Company Limited by Guarantee)
NOTES TO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015
23. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES 2015 2014 £ £
Net income for the year (as per Statement of financial activities) 239,366 44,113 Adjustment for: Depreciation charges 1,810 2,617 Impairment of programme related investment 20,000 20,000 Dividends, interest and rents from investments (40,403) (35,639) Decrease in debtors 7,828 24,041 Increase/(decrease) in creditors 77,468 (38,941)
Net cash provided by operating activities 306,069 16,191
24. ANALYSIS OF CASH AND CASH EQUIVALENTS 2015 2014 £ £ Cash in hand 740,369 739,480
Total 740,369 739,480
25. OPERATING LEASE COMMITMENTS At 31 December 2015 the company had annual commitments under non-cancellable operating leases as follows:
Land and buildings Other 2015 2014 2015 2014 £ £ £ £
Within 1 year 21,000 21,000 1,916 1,091 Between 2 and 5 years - 21,000 1,578 -
Total 21,000 42,000 3,494 1,091
Page 32 THE THOROUGHBRED BREEDERS ASSOCIATION (A Company Limited by Guarantee)
NOTES TO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015
26. JOINT VENTURE - THOROUGHBRED OWNER AND BREEDER LIMITED
A joint venture company, number 05147933 registered in England, was incorporated on 18 June 2005. The company is limited by guarantee and does not have share capital. Its registered office is 75 High Holborn, London, Wi CV 6LS.
The company is a joint venture between the Racehorse Owners Assocation and The Thoroughbred Breeders Association to print and publish a magazine for the members of the two Assocations, and others as agreed.
The directors appointed by the TBA are Philip Newton and the Chief Executive.
The TBA’s share (50%) of turnover for the year to 31 December 2015 amounting to £292,824 (2014 - £275,937), based upon management accounts, is included in these financial statements.
A summary of the company’s published results for the year ended 31 March 2015 are as follows:
2015 £ Turnover 549,949 Expenditure (672,501)
Gross Loss (122,552)
ROA Production contributions (109,424) TBA Production contributions (13,128)
Total (122,552)
The two parties to the joint venture contribute funds to cover the cost of production and distribution of the magazine to their own members. Residual losses (excess of costs over income) are split equally between the two parties. The TEA’s share of both these costs are shown within ‘cost of charitable activities’ in the SOFA.
Given the nature of the joint ventures activites, all TEA contributions have been treated as costs of the TEA. The balance sheet and profit and loss accounts of TOE have been prepared on the basis that the two parties will make contributions to cover all costs. Accordingly no value is attributable to the TEAs investment in TOE. At 31 March 2015 the balance sheet of TOE was as follows:
Page 33 THE THOROUGHBRED BREEDERS’ ASSOCIATION (A Company Limited by Guarantee)
NOTES TO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015
2015 £ Fixed assets 200,592 Current assets 110,001 Creditors due within one year (110,593) Creditors due after more than one year (200,000)
(200,592)
Reserves
27. RELATED PARTY TRANSACTIONS
Membership of the charity is open to any person aged 18 years or over who are breeders of the thoroughbred horse and all others who declare their support for and are in sympathy with the charity’s objects. The trustees are all individual members of the charity but do not derive any enhanced benefits by virtue of their position.
As set out in note 20 above, the charity has made an interest-free unsecured loan of £15,909 (2014 - £15,909) to Horsemen Limited (The Horsemen’s Group) to assist that company to meet its forecast funding requirements and this sum is included in debtors. The TBA Chairman Julian Richmond-Watson is a director of Horsemen Limited.
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