The Trustees present their annual report and financial statements for the year ended 31 December 2024.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Constitution, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and “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)” (as amended for accounting periods commencing from 1 January 2019)
The objectives of the company in the year under review were that of the promotion of the breed of Belted Galloway cattle. The company is recognised as a charity by HM Revenue & Customs.
The charity aims to achieve its objectives by:
Promoting knowledge and understanding of the Belted and White Galloway breed and attending shows and events and by the distribution of publicity both to the general public and to the cattle industry.
Maintaining the integrity of the breeds and their place in the heritage of rural Britain by setting standards for breeding. The maintenance of a database recording pedigrees and registrations thereby enabling the purity of the breeds to be maintained.
To further in every way the prosperity of the breeds so that they continue to be an important part of the diversity of the rural environment.
The promotion of high standards of stockmanship and animal welfare by encouraging young people to compete at cattle shows, by organising classes for the breeds at shows and sales and by providing prizes to encourage the widest participation in the drive to improve standards.
The main activities are the registration of pedigree cattle and the processing of transfers of ownership. As part of the Society’s modernisation programme an increasing number of these activities are performed online, a service valued by the membership. Other activities include the promotion of the breed, which is carried out by a variety of means including advertorial features in the national agricultural press and a presence at major agricultural shows. This aspect of the Society’s work is expensive and Council is aware of the effect of increased costs on the accounts. Close fiscal supervision will ensure the Society’s funds are used to best advantage.
Income continues to be generated from a variety of sources, the main sources being member subscriptions and herd book entries. Income has increased overall in the year by 2% to £83,790 (2023: £82,405).
There was a surplus of £20,321 for the year to 31 December 2024 (2023: £10,620). Funds brought forward were £112,796, and the charity holds £133,117 of net funds at the year end.
The aim of the Board is to achieve a small surplus each year and maintain the Society’s present level of funds. To this end, the investment policy is to invest in fixed interest Treasury Stocks and other low to medium risk investments.
The market value of investments has increased from £50,344 to £50,654 over the year. The investment in a fixed term deposit account remains unchanged. Both investments are in line with the charity’s low to medium risk investment policy.
Risks
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The company is limited by guarantee, is a Scottish registered charity and is recognised by the Office of the Scottish Charity Regulator and HM Revenue & Customs as a charity. The directors are the charity trustees.
The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Directors are appointed at the Annual General Meeting each year. Every director is elected on the basis that they are responsible for the management of Belted Galloway Cattle, that they understand all the issues connected with the keeping of Belted Galloways. They must have a substantial fund of experience in both cattle keeping and the running of the Society. Each appointed must be nominated and seconded by their fellow members and must give a resume of their relevant experience to the AGM at which they hope to be elected.
None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute a sum not exceeding £10 in the event of a winding up.
The Trustees report was approved by the Board of Trustees.
The Trustees, who are also the directors of Belted Galloway Cattle Society of U.K. and Eire Ltd. for the purpose 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 which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
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 judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
I report on the financial statements of the charity for the year ended 31 December 2024, which are set out on pages 5 to 14.
It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and to state whether particular matters have come to my attention.
My examination is carried out in accordance with Regulation 11 of the Charities Accounts (Scotland) Regulations 2006. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently I do not express an audit opinion on the view given by the financial statements.
In the course of my examination, no matter has come to my attention
1. which gives me reasonable cause to believe that in any material respect the requirements:
to keep accounting records in accordance with Section 44(1)(a) of the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 4 of the Charities Accounts (Scotland) Regulations 2006, and
to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the Charities Accounts (Scotland) Regulations 2006
have not been met, or
2. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
Belted Galloway Cattle Society of U.K. and Eire Ltd. is a private company limited by guarantee incorporated in Scotland. The registered office is 5 South Gyle Crescent Lane, Edinburgh, EH12 9EG. The company's place of business is Oxnam Neuk Farmhouse, Oxnam, Jedburgh, Scottish Borders, TD8 6RE.
The financial statements have been prepared in accordance with the charity's Constitution, the Companies Act 2006 the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "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)". The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a statement of cash flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
There are no restricted funds.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Voluntary income received by way of gifts or donations is included in the Statement of Financial Activities when received.
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.
Liabilities are recognised when a legal or practical obligation arises which will result in a transfer of economic benefits.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
Individual items of equipment costing less than £500 are written off in the year of purchase.
Investments within the accounts are recognised at fair value which in this case is at market value. The net gains and losses arising from revaluation and disposals throughout the year are added to the Unrestricted Fund. The investments were acquired in accordance with the powers given to the trustees in the Constitution.
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Stocks, which comprise goods for resale, are valued at the lower of cost and net realisable value.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Herd book entries
Subscriptions & prefixes
Promotional income
Entry fees
DNA testing kits
Bull inspections
Investments
Raising funds
Investment management costs
Cost of goods for resale
DNA testing costs
Bull inspection costs
Donations & prizes
Post, telephone, stationery & advertising
Meeting & dinner expenses
Database, computer & website expenses
Show expenses
Belted Galloway News
Sundry expenses
Secretary's fees & expenses
Insurance
The following Trustees received remuneration from the Charity in relation to their services as bull inspectors and reimbursement of travel expenses:
2024 2023
£ £
R Adams 1,046 706
P Colbear 156 -
E Wilkinson 240 314
R Wilson 79 79
D Henry 265 -
J McHugh 438 208
The trustees are considered to be the Key Management Personnel.
The average monthly number of employees during the year was:
The Independent Examiner's remuneration constituted an examination fee of £1,975 (2023: £1,930) and £300 (2023: £306) for added accounting services.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
There were no disclosable related party transactions during the year (2023 - none) other than those disclosed in note 9.