Registered number: 1845726
Charity number: 515652
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2016
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
CONTENTS
Page
Trustees
1
Reference and Administrative Details of the Charity and Advisers
2-3
Trustees' Report
4 - 13
Independent Auditors' Report
14 - 15
Consolidated Statement of Financial Activities
16
Consolidated Balance Sheet
17 - 18
Society Balance Sheet
19 - 20
Consolidated Cash Flow Statement
Notes to the Financial Statements
21
22 - 41
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
TRUSTEES
FOR THE YEAR ENDED 30 SEPTEMBER 2016
Council
Mrs J Hiles
C C Rothery, Treasurer
A C Read, Honorary Show Director
G Bottom, President
R M Battle, President Elect
Lord Lieutenant of Lincolnshire T E Dennis, Patron
Trustees
Mrs J Hiles
C C Rothery
A C Read
W B R Grantham
I H Walter
R E Howard
N R Bottom
S Ward
A Buckley (appointed 11 January 2016)
A Smith (appointed 11 January 2016)
R O Collett (resigned 11 January 2016)
H Bichan (resigned 11 January 2016)
Page 1
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE SOCIETY AND ADVISERS
FOR THE YEAR ENDED 30 SEPTEMBER 2016
Company registered
number
1845726
Charity registered
number
515652
Registered office
Lincolnshire Showground
Grange-de-Lings
Lincoln, LN2 2NA
Chief executive officer & J Southall
Company secretary
Past Presidents
Baroness Byford DBE, 2006
J A C Godfrey CBE, 2007
R W Parker, 2008
The Earl of Yarborough, 2009
H Bourn, 2010
Professor David Chiddick, 2011
Lord Taylor of Holbeach, 2012
N D S Brown, 2013
R G Needham, 2014
Lady Sarah McCorquodale, 2015
Independent auditors
Streets Audit LLP
Chartered Accountants and Statutory Auditor
Tower House
Lucy Tower Street
Lincoln, LN1 1XW
Bankers
Clydesdale Bank
Unit 8 Cygnet Road
Hampton
Peterborough, PE7 8FD
Natwest Bank Plc
225 High Street
Lincoln, LN2 1AZ
Solicitors
C C G Hunter
Andrew & Co
St Swithins Square
Lincoln, LN2 1HB
Honorary Chaplain
Revd Canon Alan J Robson
Honorary Medical Officer Dr M E Adelman FRC Path
Veterinary Surgeons
J Baker Orchard Hse Veterinary Surgery
Page 2
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE SOCIETY AND ADVISERS
FOR THE YEAR ENDED 30 SEPTEMBER 2016
Advisers (continued)
Life Members of the
Council
G E Albone, M E Dickinson, M G Godson, W G Henson, C E N Howard, G J B
Read, M H B Read, Mrs S A Richardson
Elected Members of
Council (due to retire in
January 2017)
D K Baker DL, N Bottom, M H Bichan, K Burkitt, R O Collett, P Crafts, R E Dennett,
J Dudgeon, R Elwes, W B R Grantham, R Hansard, H D Hill, R E Howard, J C R
Matthews, T R Needham, L Parker, D Pridgeon, A C Read, D I Richardson, C C
Rothery, C G Rowles Nicolson DL, A A Smith, P Vergette D J Wallis, S Ward, R
Willey, S MS Williams
Elected Members of
R M Battle, Mrs E A Coy, Ms H Clough, D J Creasey, R N Crust, A E J Fowler, P
Council ( due to retire in Gilbert, T Garner, Mrs J Godfrey, C M Godson, J Grantham, R Holmes, T S
January 2018)
Kelway, R J Knight, J W Lockwood, Mrs J Moreton, D J L Nelstrop, G M Overton,
M Poucher, Mrs M R Robinson, S Sparling, A Stennett, Mrs C M Thorlby, I H
Walter, Mr C Welby, Mr I Watson, A Buckley, Mrs S Moncaster, M Poucher, J
Brant
Chief Stewards
Catering and Public Services- R E Howard
Countryside- J W B Grantham
Equine- S Moncaster
Livestock- M Poucher
Trade- C M Godson
Food Court and the Mews- R N Crust
Traffic- L Parker
Admissions- R Holmes
Co-opted Members
Lincolnshire and South Humberside National Farmers' Union- Mrs A Willoughby
Lincolnshire Chamber of Commerce and Industry- Mrs G Richardson
Lincolnshire Branch of the Country Land and Business Association- G Rowles
Nicolson
Lincolnshire (Holland) National Farmers' Clubs - C Wray
University of Lincoln- D Stainton
Lincolnshire Federation of Young Farmers' Clubs- S Garrick
British Agricultural and Garden Machinery Association- P Arrand
Unite the Union- R West
West Lindsey District Council- M Di Salvatore
Page 3
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
TRUSTEES' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2016
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 Lincolnshire Agricultural Society (the Society and the
group) for the year ended 30 September 2016.
Since the Society and the group 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.
Structure, governance and management
a. CONSTITUTION
Lincolnshire Agricultural Society is a company limited by guarantee governed by its Memorandum and Articles
of Association amended to allow for the current governance arrangements on 7th January 2010. It is registered
as a charity with the Charity Commission.
Our Purpose
•
•
To advance, promote and improve agriculture and horticultural industries and associated trades, crafts
and professions; and
The advancement of environmental protection or improvement through the encouragement of sustainable
management of natural resources.
As a Registered Charity we pursue this purpose through a wide variety of activities, the aim of this Annual
Report is to highlight these activities and raise awareness of the Society.
Membership of the Society is open to anyone who has completed the appropriate form and upon payment of the
subscription due annually in advance on 31st January each year (subject to the right of the Council to decline
any application). Each member agrees to contribute £1 in the event of the charity winding up. In 2016 there are
2,461 members (2,462 in 2015).
b. METHOD OF APPOINTMENT OR ELECTION OF TRUSTEES
The Members elect the Council of the Society in accordance with the Memorandum and Articles of Association.
Members are elected to serve on the Council for 2 years. Co opted members are not entitled to vote at Council
meetings.
c. POLICIES ADOPTED FOR THE INDUCTION AND TRAINING OF TRUSTEES
New Trustees undergo an orientation day to brief them on their legal obligations under charity and company law,
the content of the Memorandum and Articles of Association, the committee and decision making
processes, the business plan and recent financial performance of the charity. During the induction day they
meet key employees and other Trustees. Trustees are encouraged to attend external training events
appropriate to their role.
Page 4
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
TRUSTEES' REPORT (continued)
FOR THE YEAR ENDED 30 SEPTEMBER 2016
d. ORGANISATIONAL STRUCTURE AND DECISION MAKING
The AGM elects the following Trustees:
Chairman of the Society – who chairs all meetings of the Council and the Board of Trustees.
Treasurer – who is also a Vice Chairman of the Society and is responsible for implementing the decisions of
the Council, Board of Trustees and Board sub committees in the day to day financial affairs of the Society.
Honorary Director – who is also a Vice Chairman of the Society and is responsible for implementing the
decisions of the Council, Board of Trustees and Board sub committees in the direction of the annual show and
the day to day management of the Society’s land and property.
Plus between 5 and 10 elected trustees.
The Society is managed by the trustees who have ultimate control over the management and operation of the
Society including the administration and management of the Society’s land and property. The Trustees meet on
a regular basis, currently quarterly.
In accordance with the Memorandum and Articles of Association the Board of Trustees may establish other
committees for specific purposes. During the year the following such committees operated, reporting as
appropriate to the Board of Trustees:
The Show Committee to concentrate on all aspects of the annual Show
The Education Committee to develop the educational work of the Society including the Lincolnshire Farming
Conference, the School’s Challenge, Countryside Lincs and Farmhouse breakfast week.
The Finance Committee – to provide scrutiny of the Society's finances
The Development Committee to concentrate on the development of the Showground site
The Marketing Committee – to oversee the promotion and marketing of the Charity and Showground activities
The Trustees appoint a CEO to manage the day to day operations of the charity. To facilitate effective
operations the CEO has delegated authority for operational matters including finance and employment and is
supported by permanent staff.
Page 5
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
TRUSTEES' REPORT (continued)
FOR THE YEAR ENDED 30 SEPTEMBER 2016
e. RELATED PARTY RELATIONSHIPS
The Society provides administrative services to, and receives donations from, it’s trading subsidiary Lincolnshire
Showground Limited.
The Society paid a total of £3,800 from revenue during the year by way of subscriptions and affiliation fees to
organisations of like interest and grants to other bodies and organisations within the agricultural industry.
In addition to financial support the Society offers support and advice to numerous local groups and
organisations that operate within the agricultural sector including;
•
•
•
•
•
•
The Lincolnshire Federation of Young Farmers
Lincolnshire Federation of Women's Institutes
Lincoln Rural Support Network
Farming and Wildlife Advisory Group
Lincoln Red Cattle Society
Lincoln Longwool Sheep Breeders Association
Nominated Charity
The Society elects to support a charity each year and this year the nominated charity is Macmillan Cancer
Support.
Awards and Prizes have been made to leading students at the University of Lincoln and Bishop Burton
Riseholme College.
Donations of Lincolnshire Show tickets are selectively given to children’s educational groups to support
fundraising activities such as auctions and raffles throughout the county. This helps to strengthen the
association with the future generation of the county and help raise awareness through the annual Show of the
link between farming, food and the rural community.
Support is received by the Society from many areas too numerous to mention however, in addition to sponsors,
stewards, exhibitors and the competitors, the following individuals and organisations offer their support:
•
•
•
•
•
The Bailgate Independent
Root Studio
Lincolnshire Media
The Lincolnite
Lincs FM
Transactions with Related Parties are summarised in Note 24 of the financial statements and transactions that
were undertaken with organisations in which any member of the Council of the Society has an interest are listed
in Note 22 of the financial statements.
Page 6
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
TRUSTEES' REPORT (continued)
FOR THE YEAR ENDED 30 SEPTEMBER 2016
f. RISK MANAGEMENT
The trustees have a risk management policy which comprises:
•
An ongoing review of the risks the charity may face.
•
The establishment of systems and procedures to mitigate those risks identified.
•
The implementation of procedures designed to minimise any potential impact on the charity should those
risks materialise.
This has resulted in better emergency procedures and contingency plans and has given the impetus for better
operational and financial planning.
Objectives and Activities
a. OBJECTIVES
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance
published by the charity commission relating to public benefit.
The objects of the charity are:
•
To advance, promote and improve agricultural and horticultural industries and associated trades, crafts
and professions; and
•
The advancement of environmental protection or improvement through the encouragement of sustainable
management of natural resources.
b. STRATEGIES FOR ACHIEVING OBJECTIVES
The strategies employed to achieve the charity’s objectives are to:
•
Hold an annual agricultural Show, Food and Gift Fair, Countryside Lincs Event and a Lincolnshire
Farming Conference
•
Maximise the revenue from the Society’s assets whilst maintaining support for agriculturally related
organisations and groups.
•
Develop and maintain links with the educational sector to encourage participation and increased
knowledge within the community knowledge within the community.
•
Develop and maintain links with regional food producers.
•
Develop and maintain links with the community.
Page 7
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
TRUSTEES' REPORT (continued)
FOR THE YEAR ENDED 30 SEPTEMBER 2016
Achievements and performance
a. REVIEW OF ACTIVITIES
During the year ended 30th September 2016, the trustees have continued to pursue the stated objectives of the
Society including staging the 132nd Lincolnshire Show seeking to engage the wider community including both
business and public whilst still retaining its agricultural roots. There are numerous facets to the Show and below
is listed a few of those giving an overview of the areas of interest that combine together to support the Society's
charitable objectives:
2016 Schools' Challenge
The Schools’ Challenge competition is open to all Primary, Secondary, Special and Independent Schools in
Lincolnshire and Rutland. Schools choose from one of our ten exciting challenges all linked to the curriculum
and designed to develop young people’s understanding of food, farming, sustainability and the environment.
With the support of a farming mentor and business associate related to the particular challenge, the pupils
research their project and then showcase their learning and understanding to both the judges and members of
the public at the Lincolnshire Show.
The popularity of this area of the Show continues to grow from strength to strength and this year 61 schools
participated, showcasing their abilities and competing to become champions in their school category. The pupils
excel themselves with their creativity and confidence and the enthusiasm for food, farming and sustainability is
infectious. The Exhibition Hall was just buzzing with activity and excitement.
The winning schools were:
•
Scampton Primary School – Small Primary
•
Wragby Primary School – Medium Primary
•
Tall Oaks Academy Trust – Large Primary
•
Caistor Yarborough Academy – Secondary 1
•
South Axholme Academy – Secondary 2
•
St Christopher’s School – Special
•
Rauceby Church of England Primary School – Great Gardening Challenge
The Food Court
The Food Court is continuing to develop with an excellent mix of food and drink at the Show this year - from
across Lincolnshire and further afield.
The cookery demonstration area is now fully branded as The
Lincolnshire Kitchen and once again proved a huge hit. We offered a packed and varied timetable across the 2
days – working with both Lincolnshire chefs and producers. We also welcomed a student from Lincoln Minster
School, who was regional winner of the Rotary Young Chef of the Year competition. Lincolnshire is justifiably
proud of its great food heritage and culture and it will all be on display in the Food Court again in 2017.
Discovery Zone
The Discovery Zone continues to grow and the introduction of the Education Marquee proved very popular this
year, the theme being the potato story. The theme for 2017 will be The Grain Journey. The educational arm of
the Knights Trail will be launched at the 2017 Lincolnshire Show and we are hoping to have a static heritage
display in the Discovery Zone.
Page 8
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
TRUSTEES' REPORT (continued)
FOR THE YEAR ENDED 30 SEPTEMBER 2016
Countryside Area
The additional seating in the Countryside Area was very well received as was the new demonstration in the ring
from a local Flyball team. The army filled the area previously occupied by Frontier but Steven Bennett, chef
from the Comfy Duck at the Oakland’s Hotel is utilising this area. From a marquee he’ll be offering afternoon
tea with a glass of prosecco, charcuterie and cheese plates etc.
Aviation Zone
The Aviation Zone was a popular addition to the Show this year and something we will be looking to develop
and build on in the future.
Long Service Awards
These awards demonstrate the loyalty that is still prevalent in the agricultural, horticultural and allied industries.
They recognise the employees of a member of the Agricultural Society who has been employed for a
continuous period in excess of 40 years. This year the recipients racked up a staggering 1183 years between 27
individuals, with two recipients having achieved 50 years of continuous service with the same employer.
Livestock and Equine Classes, Awards and Competitions
Breed promotion, support and advancement are an integral part of the Show and attract a large number of
catalogued entries:
Equine
1,697
Livestock
1,197
The Show continues to support breeders and farmers alike and has the benefit of many long standing exhibitors
not wanting to miss the show.
The Young Farmers' Clubs compete in the Inter County Judging Competitions to help to nurture the next
generation of judges. There is also an opportunity for young handlers to link into the Lincoln Red Beef producers
to take part in a special competition encouraging the transfer of practical skills and knowledge from farmer to
young handler.
Specific young handler classes in the Beef, Dairy, Sheep and Pig sections are helping to encourage the next
generation of Stockmen into the Show.
The Equine Section continues to be well supported with entries, due to an excellent reputation throughout the
Showing Community, having good stewards, judges and rings so is continually awarded a large number of
Horse of the Year Show Qualifiers.
Other areas of competition include a Farriery Competition, Flower Show, Floral Art, Show Chic, Young Farmers
Competitions, Schools Challenge and Trade Awards.
Livestock Tours
The LAS undertakes tours of the Livestock Lines for Primary Schools during the Show to educate children
which has excellent uptake and is being expanded to tours of the Machinery Lines.
Meet a Moo
The Livestock Area also has the ‘Meet a Moo’ marquee which is open to the general public throughout the Show
and includes a variety of different cattle and relevant information.
Education
The Education Committee continues to be an important part of delivering our educational remit. Our educational
programme is developing as new initiatives are being established to engage children and young people with
food, farming and the environment.
Countryside Lincs was established in March 2015, with the purpose of bringing Lincolnshire food, farming and
Page 9
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
TRUSTEES' REPORT (continued)
FOR THE YEAR ENDED 30 SEPTEMBER 2016
heritage to a much wider audience. The event is split in various zones including the Explore it Zone, Make it
Zone, Food Zone, Countryside Zone, Tractor Zone and Farmyard Zone. In its second year this action-packed,
family educational event has expanded both in size and reputation. Visitor numbers soared in 2016 from 1,000
in 2015 to over 3,000 in 2016.
In January, we invite five different Primary Schools from the more urban areas of Lincolnshire to celebrate the
national campaign ‘Shake up Your Wake Up’. The pupils discover the importance of breakfast and celebrate all
the wonderful breakfast produce that is grown in the county of Lincolnshire. A fun-packed morning of activities is
planned including making fruity breakfast smoothies, seed planting to learn where our cereals come from and
the children have the opportunity to meet a ‘real’ farmer, porridge making and trying a variety of different tasty
toppings - all before tucking into their very own delicious breakfast!
In 2016 we launched the first Lincolnshire ‘Tractors into Schools’ project, a joint initiative between the
Lincolnshire Agricultural Society and the NFU. The campaign aims to link local farmers with Primary Schools to
build lasting relationships and educate children on the importance of farming, and to help them gain an
understanding of where their food comes from.
The Lincolnshire Farming Conference was held on the 1st March 2016 and over 300 attendees turned out to
meet a host of industry experts from around the county who gave a series of talks and seminars on a number of
leading edge topics.
The development of the LAS under 35’s group continues, with regular visits and networking events the group
has grown to over 120 members who interact and discuss farming and agriculture alongside building new
friendships and connections.
Food and Gift Fair
In 2015 we welcomed over 150 stands to the Food & Gift Fair spanning both the Epic Centre and the Exhibition
Hall selling a variety of Lincolnshire produce and wonderful gifts. The Lincolnshire Kitchen was launched at the
2015 Food & Gift Fair showcasing a variety of local chefs and producers – all helping us prepare for the festive
season. The event is run over three days, with the Friday evening being a preview evening for our members,
sponsors and supporters. The event attracted footfall of circa 8,000 in 2015. Festive entertainment is provided
by local community choirs and new for 2016 will be Santa’s Workshop offering festive “drop in” craft workshops,
where children (and adults!) can try their hand at baking, making their own Christmas decorations and even
writing their letter to Father Christmas.
Trading Activities
Lincolnshire Showground Limited, the trading Company and wholly owned subsidiary of the Society actively
marketed, administered and accounted for numerous events on the Showground. The business has continued
to develop and new initiatives have been implemented. The range of events continues to grow with regular
Arthur Swallows Antiques Fairs, various conferences and exhibitions, training sessions and balls. Additionally
we hold a large number of annual events such as Construction Week, The Motorhome Season Finale, Steam
and Vintage Rally and the One Event. This year saw the Showground host Elton John for an evening concert in
June, with 17,000 people in attendance the concert was greatly received and was followed by Ocean Colour
Scene in September. These concerts have put the Showground on the map for future music events proving we
can successfully host even the biggest names within the industry.
Page 10
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
TRUSTEES' REPORT (continued)
FOR THE YEAR ENDED 30 SEPTEMBER 2016
b. INVESTMENT POLICY AND PERFORMANCE
Under the Memorandum and Articles of Association, the charity has the power to invest monies at the Trustees'
discretion. The Trustees, having regard to the liquidity requirements of operating the Society and to its
reserves policy, have operated a policy of keeping available funds in a Treasury Reserve Account invested
either daily or weekly and seek to achieve a deposit interest which matches or exceeds inflation as measured by
the Retail Prices Index.
Financial review
a. GOING CONCERN
After making appropriate enquiries, the trustees have a reasonable expectation that the Society has adequate
resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt
the going concern basis in preparing the financial statements. Further details regarding the adoption of the
going concern basis can be found in the Accounting Policies.
b. RESERVES POLICY
In 2009 the Trustees agreed a new Reserves Policy, due to the investment made in the EPIC Centre of the
Society’s cash reserves. The policy states that:
•
Insurance against cancellation or loss of shows and events will be taken out wherever practical to do so
to mitigate the risk to the Society.
•
The Society will build up cash reserve equal to one years core expenditure over the next 10 year period this allows for the Events Centre business to become established and contribute to the overall Society's
surplus, and to allow for further necessary infrastructure investment in the showground.
•
The Society's assets are principally the freehold showground site including the tenanted farmland. The
Society would release some of this equity if trading conditions were so adverse that a cash injection was
required to ensure the Society's ability to continue.
Page 11
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
TRUSTEES' REPORT (continued)
FOR THE YEAR ENDED 30 SEPTEMBER 2016
Plans for future periods
a. FUTURE DEVELOPMENTS
Growth of the Events business remains the critical priority for the Society; and we are hoping to continue to build
on the improvements shown in this financial year, this growth is vital to help continue to support the charitable
objectives of the Society and enable the development on new educational projects. The market for small local
events in particular meetings and small groups has become increasingly competitive in the Lincoln area,
however the Lincolnshire Showground's occupancy rates are continuing to rise, this is partly due to the range of
facilities on offer where we can accommodate indoor and outdoor events that are not replicated elsewhere in
Lincolnshire and increasing business from this sector of the Events market remains a key priority. Marketing
initiatives will continue to attract medium and large events to the site in the forthcoming year.
Development of the Showground site has seen progression on both the Eco Housing development and the
Bishop Burton Riseholme Campus, alongside the purchase of a further 15 acres of car park land.
The 133rd Lincolnshire Show will continue to grow on last years, the newly introduced Aviation Zone will be
further developed for 2017. The Show comes Town event and Open Farm Sunday will continue to help promote
the Show to new audiences. We will also welcome the Longhorn Show in 2017 as an added attraction to our
Livestock area. We are also looking to introduce a Modern Machinery Parade into the main ring to showcase
the latest technological advances in farming and agriculture.
TRUSTEES' RESPONSIBILITIES STATEMENT
The Trustees (who are also directors of Lincolnshire Agricultural Society 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 the group and of the incoming resources and
application of resources, including the income and expenditure, of the charitable group 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 group will continue in operation.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain
the charitable company and the group's transactions and disclose with reasonable accuracy at any time the
financial position of the charitable group 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
the group and hence for taking reasonable steps for the prevention and detection of fraud and other
irregularities.
Page 12
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
TRUSTEES' REPORT (continued)
FOR THE YEAR ENDED 30 SEPTEMBER 2016
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 Society and the group'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 Society and the group's auditors in connection with preparing their report
and to establish that the Society and the group's auditors are aware of that information.
This report was approved by the Members of Council on
Mrs J Hiles
Trustee
and signed on their behalf by:
C C Rothery
Trustee
Page 13
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF LINCOLNSHIRE AGRICULTURAL SOCIETY
We have audited the financial statements of Lincolnshire Agricultural Society for the year ended 30 September
2016 which comprise the group Statement of Financial Activities, the group and Society Balance Sheets, the
group Cash Flow Statement and the related notes. 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 Society's members, as a body, in accordance with section 151 of the
Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so
that we might state to the charitable Society'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 Society 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 Society 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.
The Trustees have elected for the financial statements to be audited in accordance with the Charities Act 2011
rather than the Companies Act 2006. Accordingly we have been appointed as auditors under section 151 of the
Charities Act 2011 and report to you in accordance with regulations made under section 154 of that Act. 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 FINANCIAL STATEMENTS
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
group's and the parent Society'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.
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 30 September 2016 and of
the group's 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.
Page 14
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF LINCOLNSHIRE AGRICULTURAL SOCIETY
MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION
We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report
to you if, in our opinion:
•
the information given in the Trustees' Report is inconsistent in any material respect with the financial
statements; or
•
the parent charitable Society has not kept adequate accounting records; or
•
the parent charitable Society financial statements are not in agreement with the accounting records and
returns; 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 Group Strategic Report.
Streets Audit LLP
Chartered Accountants and Statutory Auditor
Tower House
Lucy Tower Street
Lincoln, LN1 1XW
Date:
Streets Audit LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.
Page 15
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING INCOME AND
EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2016
Endowment
funds
Restricted
funds
Unrestricted
funds
Total
funds
Total
funds
Note
2016
£
2016
£
2016
£
2016
£
2015
£
2
6
3,4
5
7
2,500,000
-
-
174,488
958,343
1,287,052
11,634
320,814
2,674,488
958,343
1,287,052
11,634
320,814
148,071
995,215
1,171,413
19,149
806,911
2,500,000
-
2,752,331
5,252,331
3,140,759
INCOME AND ENDOWMENTS
FROM:
Income from donations and
legacies
Charitable activities
Other trading activities
Investments
Other income
TOTAL INCOME AND
ENDOWMENTS
EXPENDITURE ON:
Raising funds
Charitable activities
2,400
707
976,159
1,710,355
976,159
1,713,462
872,940
1,556,293
TOTAL EXPENDITURE
2,400
707
2,686,514
2,689,621
2,429,233
65,817
2,562,710
711,526
NET INCOME /
(EXPENDITURE) AND
MOVEMENT IN FUNDS
2,497,600
(707)
RECONCILIATION OF FUNDS:
Total funds brought forward
TOTAL FUNDS CARRIED
FORWARD
16,800
15,405
8,797,166
8,829,371
8,117,845
2,514,400
14,698
8,862,983
11,392,081
8,829,371
All activities relate to continuing operations.
The notes on pages 22 to 41 form part of these financial statements.
Page 16
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
REGISTERED NUMBER: 1845726
CONSOLIDATED BALANCE SHEET
AS AT 30 SEPTEMBER 2016
Note
£
2016
£
£
2015
£
FIXED ASSETS
Tangible assets
13
8,702,336
Investments
14
2,500,000
7,910,021
-
11,202,336
7,910,021
NET CURRENT ASSETS
Debtors: amounts falling due after more than
one year
15
125,000
340,000
Debtors: amounts falling due within one year
15
166,146
143,634
Investments
16
22,026
21,913
354,665
827,428
667,837
1,332,975
Cash at bank and in hand
CREDITORS: amounts falling due within
one year
17
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS: amounts falling due after
more than one year
18
NET ASSETS
(450,892)
(375,450)
216,945
957,525
11,419,281
8,867,546
(27,200)
(38,175)
11,392,081
8,829,371
CHARITY FUNDS
Endowment funds
20
2,514,400
16,800
Restricted funds
20
14,698
15,405
Unrestricted funds
20
8,862,983
8,797,166
11,392,081
8,829,371
TOTAL FUNDS
The Trustees consider that the Society is entitled to exemption from the requirement to have an audit under the
provisions of section 477 of the Companies Act 2006 ("the Act") and members have not required the Society to
obtain an audit for the year in question in accordance with section 476 of the Act. However, an audit is required
in accordance with section 151 of the Charities Act 2011.
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to
accounting records and the preparation of financial statements.
Page 17
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
CONSOLIDATED BALANCE SHEET (continued)
AS AT 30 SEPTEMBER 2016
The financial statements were approved by the Members of Council on
signed on their behalf, by:
Mrs J Hiles
and
C Rothery
The notes on pages 22 to 41 form part of these financial statements.
Page 18
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
REGISTERED NUMBER: 1845726
SOCIETY BALANCE SHEET
AS AT 30 SEPTEMBER 2016
Note
£
2016
£
£
2015
£
FIXED ASSETS
Tangible assets
13
8,702,336
7,910,021
Investments
14
2,500,004
4
11,202,340
7,910,025
NET CURRENT ASSETS
Debtors: amounts falling due after more than
one year
15
125,000
340,000
Debtors: amounts falling due within one year
15
219,282
324,936
Investments
16
22,026
21,913
137,325
512,474
503,633
1,199,323
Cash at bank
CREDITORS: amounts falling due within
one year
17
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS: amounts falling due after
more than one year
18
NET ASSETS
(286,694)
(241,802)
216,939
957,521
11,419,279
8,867,546
(27,200)
(38,175)
11,392,079
8,829,371
CHARITY FUNDS
Endowment funds
20
2,514,000
16,800
Restricted funds
20
14,698
15,405
Unrestricted funds
20
8,863,381
8,797,166
11,392,079
8,829,371
TOTAL FUNDS
The Trustees consider that the Society is entitled to exemption from the requirement to have an audit under the
provisions of section 477 of the Companies Act 2006 ("the Act") and members have not required the Society to
obtain an audit for the year in question in accordance with section 476 of the Act. However, an audit is required
in accordance with section 151 of the Charities Act 2011.
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to
accounting records and the preparation of financial statements.
Page 19
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
SOCIETY BALANCE SHEET (continued)
AS AT 30 SEPTEMBER 2016
The financial statements were approved by the Members of Council on
signed on their behalf, by:
Mrs J Hiles
and
C Rothery
The notes on pages 22 to 41 form part of these financial statements.
Page 20
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2016
2016
£
2015
£
118,506
119,015
Cash flows from investing activities:
Proceeds from sale of Gusto Homes
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
Proceeds from sale of investments
Purchase of investments
320,100
250
(900,531)
(113)
139,200
712,415
(93,772)
1,134,445
-
Net cash (used in)/provided by investing activities
(580,294)
1,892,288
Cash flows from financing activities:
Repayments of borrowings
(10,975)
(1,442,519)
Net cash used in financing activities
(10,975)
(1,442,519)
Note
Cash flows from operating activities
Net cash provided by operating activities
22
Change in cash and cash equivalents in the year
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward
23
(472,763)
568,784
827,428
258,644
354,665
827,428
Page 21
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2016
1.
ACCOUNTING POLICIES
1.1 General information
As set out in the trustees' report, Lincolnshire Agricultural Society is an incorporated charity
registered in England and Wales. The address of their registered office is Lincolnshire Showground,
Grange-De-Lings, Lincoln, LN2 2NA.
1.2 Critical accounting estimates and areas of judgement
Estimates and judgements are continually evaluated and are based on historical experience and
other factors, including expectations of future events that are believed to be reasonable under the
circumstances.
Critical accounting estimates and assumptions:
The Society makes estimates and assumptions concerning the future. The resulting accounting
estimates and assumptions will, by definition, seldom equal the related actual results.
Critical areas of judgement:
The valuation of the legacy asset recognised in the year has been estimated by Trustees to be
£2.5million. This is on the basis of fair value given taking into accounts the significant restrictions
applying to the estate. Further details can be found in note 14 to the financial statements.
1.3 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 in the UK and 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 (FRS 102) and the Companies Act 2006
Lincolnshire Agricultural Society 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 Statement of Financial Activities (SOFA) and Balance Sheet consolidate the financial
statements of the Society and its subsidiary undertaking. The results of the subsidiary are
consolidated on a line by line basis.
No separate SOFA has been presented for the Society alone as permitted by section 408 of the
Companies Act 2006.
1.4 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.
A reconciliation of total funds can be found in note 28.
Page 22
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2016
1.
ACCOUNTING POLICIES (continued)
1.5 Basis of consolidation
The financial statements consolidate the accounts of Lincolnshire Agricultural Society (The Society)
and all of its subsidiary undertakings ('subsidiaries').
The Society has taken advantage of the exemption contained within 408 of the Companies Act 2006
not to present its own Income and Expenditure Account.
1.6 Turnover
Turnover comprises revenue recognised by the Society in respect of goods and services supplied
during the year, exclusive of Value Added Tax and trade discounts.
1.7 Company status
The Society is a company limited by guarantee. The members of the Society are the Trustees
named on page 2. In the event of the Society being wound up, the liability in respect of the
guarantee is limited to £1 per member of the Society.
1.8 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 Society and which have not been designated for other
purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by
donors or which have been raised by the Society 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.
1.9 Income
All income is recognised once the Society has entitlement to the income, it is probable that the
income will be received and the amount of income receivable can be measured reliably.
For legacies, entitlement is taken as the earlier of the date on which either: the Society is aware that
probate has been granted, the estate has been finalised and notification has been made by the
executor(s) to the Trust that a distribution will be made, or when a distribution is received from the
estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be
measured reliably and the Society has been notified of the executor's intention to make a
distribution. Where legacies have been notified to the Society, or the Society is aware of the
granting of probate, and the criteria for income recognition have not been met, then the legacy is
treated as a contingent asset and disclosed if material.
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is
recognised at the time of the donation.
Income tax recoverable in relation to investment income is recognised at the time the investment
income is receivable.
Page 23
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2016
1.
ACCOUNTING POLICIES (continued)
1.10 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic
benefit to a third party, it is probable that a transfer of economic benefits will be required in
settlement and the amount of the obligation can be measured reliably. Expenditure is classified by
activity. The costs of each activity are made up of the total of direct costs and shared costs,
including support costs involved in undertaking each activity. Direct costs attributable to a single
activity are allocated directly to that activity. Shared costs which contribute to more than one activity
and support costs which are not attributable to a single activity are apportioned between those
activities on a basis consistent with the use of resources. Central staff costs are allocated on the
basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs
of disseminating information in support of the charitable activities. Support costs are those costs
incurred directly in support of expenditure on the objects of the Society and include project
management carried out at Headquarters.
Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in
trading activities that raise funds.
Charitable activities and Governance costs are costs incurred on the Society's educational
operations, including support costs and costs relating to the governance of the Society apportioned
to charitable activities.
1.11 Tangible fixed assets and depreciation
No depreciation is provided on Freehold Land or on assets in the course of construction until
brought into use when they are transferred to the relevant asset heading.
No depreciation has been charged on the EPIC building and Tennyson Pavilion within these
accounts as the directors are of the opinion that as a sustainable building it is expected to maintain
its value with appropriate maintenance. See note 12 for further information.
A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate
that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying
value of fixed assets and their recoverable amounts are recognised as impairments. Impairment
losses are recognised in the Statement of Financial Activities.
Tangible fixed assets are carried at costor valuation , net of depreciation and any provision for
impairment. Depreciation is provided at rates calculated to write off the costor valuation of fixed
assets, less their estimated residual value, over their expected useful lives on the following bases:
Services & installations
Machinery & office equipment
-
5/10% straight line
20/33% straight line
Page 24
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2016
1.
ACCOUNTING POLICIES (continued)
1.12 Revaluation of tangible fixed assets
The Society has adopted the revaluation model to revalue items of property, plant and equipment
whose fair value can be measured reliably. The revaluations shall be made with sufficient regularity
to ensure that the carrying amount does not differ materially from that which would be determined
using fair value at the end of the reporting period.
The fair value of land and buildings is usually determined from market-based evidence by appraisal
that is normally undertaken by professionally qualified valuers. The fair value of items of plant and
machinery is usually their market value determined by appraisal.
Revaluation gains and losses are recognised in other comprehensive income and accumulated in
equity.
1.13 Investments
Fixed asset investments are a form of financial instrument and are initially recognised at their
transaction cost and subsequently measured at fair value at the Balance Sheet date, unless fair
value cannot be measured reliabily in which case it is measured at cost less impairment. Investment
gains and losses, whether realised or unrealised, are combined and shown in the heading
‘Gains/(losses) on investments’ in the Statement of Financial Activities.
(i)
Subsidiary undertakings
Investments in subsidiaries are valued at cost less provision for impairment.
1.14 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured
reliably by the Society; this is normally upon notification of the interest paid or payable by the Bank.
1.15 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered.
Prepayments are valued at the amount prepaid net of any trade discounts due.
1.16 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.
Page 25
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2016
1.
ACCOUNTING POLICIES (continued)
1.17 Liabilities and provisions
Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past
event, it is probable that a transfer of economic benefit will be required in settlement, and the
amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the
Society anticipates it will pay to settle the debt or the amount it has received as advanced payments
for the goods or services it must provide. Provisions are measured at the best estimate of the
amounts required to settle the obligation. Where the effect of the time value of money is material,
the provision is based on the present value of those amounts, discounted at the pre-tax discount
rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within
interest payable and similar charges.
1.18 Pensions
The Society makes discretionary contributions to the personal pension plans of certain employees.
The pension charge represents contributions payable in respect of the accounting period.
1.19 Financial instruments
The Society 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.
1.20 Stock
As the Society is not trading and the quantities of stock are not material, they are written off on
purchase. This includes the perpetual cups and trophies.
2.
INCOME FROM DONATIONS AND LEGACIES
Endowment
funds
Restricted
funds
Unrestricted
funds
Total
funds
Total
funds
2016
£
2016
£
2016
£
2016
£
2015
£
Legacies
Gift aid and donations
Subscriptions
2,500,000
-
-
45,101
129,387
2,500,000
45,101
129,387
27,255
120,816
Total donations and legacies
2,500,000
-
174,488
2,674,488
148,071
In 2015, of the total income from donations and legacies, £148,071 was to unrestricted funds and £nil was
to restricted funds
Page 26
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2016
3.
FUNDRAISING INCOME
Society merchandise
Endowment
funds
Restricted
funds
Unrestricted
funds
Total
funds
Total
funds
2016
£
2016
£
2016
£
2016
£
2015
£
-
-
290
290
54
In 2015, of the total income from fundraising, £54 was to unrestricted funds and £nil was to restricted
funds.
4.
LINCOLNSHIRE SHOWGROUND LIMITED
On behalf of the Society, the Trustees of the Society hold the whole of the issued ordinary share capital
of Lincolnshire Showground Limited (formerly known as Lincolnshire Events Centre Limited), a company
registered in England. The subsidiary is used for non-primary purpose trading activities, namely the
letting of the facilities on the Society's showground for events other than those organised by the Society in
the furtherance of its objects.
All activities have been consolidated on a line by line basis in the SOFA. The total net profit is gifted to
the Society. A summary of the trading results are shown below:
Endowment
Funds
Restricted
Funds
Unrestricted
Funds
£
£
£
2016
2015
£
£
Fundraising Income
Turnover
-
-
1,286,762
1,286,762
1,171,359
Sub total
-
-
1,280,584
1,286,762
1,171,359
Cost of sales
Wages and salaries
-
-
672,205
305,979
672,205
305,979
593,066
279,874
Sub total
-
-
978,184
978,184
872,940
Total
-
-
308,578
308,578
298,419
Fundraising expenses and
other costs
Page 27
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2016
Contribution to Society from trading activities:
5.
2016
£
2015
£
Licence fee
Gift Aid
180,000
128,578
180,000
118,419
Total
308,578
298,419
INVESTMENT INCOME
Rental income
Interest receivable
Endowment
funds
Restricted
funds
Unrestricted
funds
Total
funds
Total
funds
2016
£
2016
£
2016
£
2016
£
2015
£
-
-
11,583
51
11,583
51
17,127
2,022
-
-
11,634
11,634
19,149
In 2015, of the total investment income, £19,149 was to unrestricted funds and £nil was to restricted
funds.
6.
INCOME FROM CHARITABLE ACTIVITIES
The Lincolnshire Show
Lincolnshire Horse Trials
Food and Gift Show
Countryside Lincs
Endowment
funds
Restricted
funds
Unrestricted
funds
Total
funds
Total
funds
2016
£
2016
£
2016
£
2016
£
2015
£
-
-
882,393
65,914
10,036
882,393
65,914
10,036
874,405
58,646
56,951
5,213
-
-
958,343
958,343
995,215
In 2015, of the total income from charitable activities, £995,215 was to unrestricted funds and £nil was to
restricted funds.
Page 28
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2016
7.
OTHER INCOMING RESOURCES
Endowment
funds
Restricted
funds
Unrestricted
funds
Total
funds
Total
funds
2016
£
2016
£
2016
£
2016
£
2015
£
-
-
1,334
1,334
2,007
-
-
319,480
319,480
804,904
-
-
320,814
320,814
806,911
Other income
Profit on disposal of fixed
assets
In 2015, of the total other incoming resources, £806,911 was to unrestricted funds and £nil was to
restricted funds.
8.
DIRECT COSTS
Show costs
Repairs and maintenance
Rates, water, light and heat
Insurance
Professional fees and charges
EPIC Loan Interest
Bank and finance charges
Postage and telephone
Membership costs
Staff related costs
Bad debts written off
Grants, presentations and subscriptions
Sundries
FarmLincs
Lincfarms
Wages and salaries
Pension cost
Depreciation
9.
Unrestricted
funds
Other
funds
Total
2016
£
£
£
Total
2015
£
601,534
496,335
38,299
40,859
33,622
11,856
33,887
10,117
8,779
1,449
6,050
9,339
25,447
254,935
22,551
104,946
707
2,400
601,534
496,335
38,299
40,859
33,622
11,856
33,887
10,117
8,779
1,449
6,050
9,339
25,447
707
254,935
22,551
107,346
638,935
287,106
47,770
51,125
40,308
13,194
5,708
46,934
8,237
9,176
394
6,403
8,840
24,051
1,095
259,003
17,034
80,980
1,700,005
3,107
1,703,112
1,546,293
Unrestricted
funds
Total
2016
£
£
Total
2015
£
10,350
10,350
10,000
SUPPORT COSTS
Audit Fee
Page 29
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2016
10.
STAFF COSTS
Staff costs were as follows:
Wages and salaries
Pension costs
2016
£
2015
£
560,914
22,551
538,877
17,034
583,465
555,911
The average number of persons employed by the Society during the year was as follows:
Ground staff
Management and administration
Events
Facilities
2016
2015
No.
No.
7
7
8
1
7
7
8
1
23
23
The number of higher paid employees was:
As restated
In the band £60,001 - £70,000
2016
No.
2015
No.
1
1
The key management personnel of the charity are the trustees, Chief Executive Officer and Management
Team. No trustees received any remuneration during the year (2015: £nil). The total remuneration and
benefits paid to the CEO and two (2015 two) members of the Management Team during the year
amounted to £154,403 (2015: £127,634).
Included in the £560,914 above are Employers National Insurance contributions of £48,056 (2015:
£40,871).
Page 30
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2016
11.
NET INCOMING RESOURCES / (RESOURCES EXPENDED)
This is stated after charging:
Depreciation of tangible fixed assets:
- owned by the charitable group
Auditors' remuneration - audit
2016
£
2015
£
107,346
10,350
80,980
10,350
During the year, no Trustees received any remuneration (2015 - £NIL).
During the year, no Trustees received any benefits in kind (2015 - £NIL).
During the year, no Trustees received any reimbursement of expenses (2015 - £NIL).
12.
AUDITORS' REMUNERATION
The Auditor's remuneration amounts to an Audit fee of £8,350 (2015 - £8,350), and accountancy services
of of £2,000(2015 - £2,000).
Page 31
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2016
13.
TANGIBLE FIXED ASSETS
Freehold
property
Group and Society
Plant,
machinery &
Freehold
office
Services &
land
equipment installations
Total
£
£
£
£
£
At 1 October 2015
Additions
Disposals
3,402,265
-
4,180,754
483,181
-
279,489
32,720
(1,800)
1,471,274
384,630
-
9,333,782
900,531
(1,800)
At 30 September 2016
3,402,265
4,663,935
310,409
1,855,904
Cost/valuation
10,232,513
Depreciation
At 1 October 2015
Charge for the year
On disposals
-
-
173,094
34,575
(930)
1,250,667
72,771
-
1,423,761
107,346
(930)
At 30 September 2016
-
-
206,739
1,323,438
1,530,177
Net book value
At 30 September 2016
3,402,265
4,663,935
103,670
532,466
8,702,336
At 30 September 2015
3,402,265
4,180,754
106,395
220,607
7,910,021
The EPIC building, which was completed in the summer of 2008, has previously been included in the
balance sheet at cost. Due to the specialist and sustainable nature of the building its estimated useful life,
for the purposes of depreciation is difficult to estimate, as is its net realisable value. An impairment review
in order to assess a more realistic carrying value for the building based on its value in use to the charity
was carried out during the year ended 30 September 2014 and reflected in those financial statements.
Full details were included.
The Tennyson building which was completed in the summer of 2011 and which has previously been
included in the balance sheet at cost was subject to a similar review. The carrying value of both buildings
are to be reviewed on a similar basis at least every five years.
The freehold land owned by the Society is included at a revalued amount by the trustees having taken
appropriate advice. The carrying value of the freehold land on an historic cost basis would be £817,864
(2015: £334,683).
Page 32
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2016
Cost or valuation at 30 September 2016 is as follows:
Land and
buildings
Group and Society
£
At cost
4,220,129
At valuation:
Revaluation reserve
3,846,071
8,066,200
If the land and buildings had not been included at valuation they would have been included under the
historical cost convention as follows:
2016
£
2015
£
Cost
Accumulated depreciation
4,220,129
-
3,736,948
-
Net book value
4,220,129
3,736,948
Group and Society
Cost or valuation at 30 September 2016 is as follows:
Land and
buildings
Society
£
At cost
4,220,129
At valuation:
Revaluation reserve
3,846,071
8,066,200
The land and buildings were revalued on 30 September 2013 by the Trustees on an open market existing
use basis.
If the land and buildings had not been included at valuation they would have been included under the
historical cost convention as follows:
2016
£
2015
£
Cost
Accumulated depreciation
4,220,129
-
3,736,948
-
Net book value
4,220,129
3,736,948
Society
Page 33
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2016
14.
FIXED ASSET INVESTMENTS
Other
investments
Group
£
Market value
At 1 October 2015
Additions
2,500,000
At 30 September 2016
2,500,000
Group investments at market value comprise:
2016
£
Other fixed asset investments
2,500,000
All the fixed asset investments are held in the UK
Valuation
The shareholding in Lincolnshire Showground Limited is valued at cost.
Legacy Asset
During the year ended 30 September 2016 the Society has recognised a significant legacy from the late
Sheila Trafford. Probate was granted on 1 February 2016 and subject to a small number of other
bequests the entire residue of the estate comes to the society. This comprises farm land and buildings
and residual cash. The trustees are aware that there are a number of significant restrictions which will
apply to the use of the farm land and buildings but are currently not aware of the full detail of these.
Accordingly, in the opinion of the trustees, probate value is not appropriate for inclusion in the financial
statements and as at 30 September 2016 the trustees have estimated the fair value of the bequeathed
assets to be £2.5million. A valuation is expected to be undertaken on behalf of the trustees once the
property has been transferred to the Society and full details of the restrictions are known. This is
expected to be in the financial statements for the year ended 30 September 2017. The legacy has been
included in Endowment Funds in note 20 to the financial statements.
Society investments at market value comprise:
2016
£
Other fixed asset investments
Group
2,500,000
4
Total
2,500,004
2015
£
4
4
All the fixed asset investments are held in the UK
Page 34
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2016
15.
DEBTORS
Group
Society
2016
£
2015
£
2016
£
2015
£
125,000
340,000
125,000
340,000
Due after more than one year
Development mortgage
Group
Society
2016
£
2015
£
2016
£
2015
£
159,328
6,818
123,112
20,522
16,244
196,715
6,323
48,068
261,200
15,668
166,146
143,634
219,282
324,936
Due within one year
Trade debtors
Amounts owed by group undertakings
Prepayments and accrued income
DEVELOPMENT MORTGAGE - CONTINGENT ASSET
During the year ended 30 September 2014, the Society granted a 999 year lease of land at Horncastle
Lane, Scampton to Gusto Partnership Limited who are to develop 18 eco-homes on the site. The initial
lease premium of £408,000 was due to be repaid by agreed instalments determined by the sale of the
eco-homes. During the year ended 30 September 2016, £215,000 of this has been repaid (2015: £68,000
repaid).
There shall then be a further premium payable to the Society on the sale of each house equal to 10% of
the gross proceeds for each of the eco-houses. The gross sales proceeds will be determined by various
market factors and as such is not practicable to quantify these which are therefore included only as the
individual house is sold. During the year ended 30 September 2016 nine houses were sold and £320,100
received (2015: £139,200 received for 4 houses).
The Society shall hold a first legal charge over the property and subsequently each eco-home until full
settlement at which point security shall be released.
16.
CURRENT ASSET INVESTMENTS
Group
Bank deposit accounts
Society
2016
£
2015
£
2016
£
2015
£
22,026
21,913
22,026
21,913
Page 35
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2016
Current asset investments
17.
Market Value
2016
£
Cost 2016
£
Market Value
2015
£
Cost 2015
£
FarmLincs Fund - Clydesdale
Clydesdale Farm Lincs Funds on
deposit
2,840
2,840
2,790
2,790
19,186
19,186
19,123
19,123
Total
22,026
22,026
21,913
21,913
CREDITORS:
Amounts falling due within one year
Group
Trade creditors
Other taxation and social security (see
below)
Other loans
Accruals and deferred income
Society
2016
£
2015
£
2016
£
2015
£
78,646
97,458
78,646
97,458
64,157
10,000
298,089
17,248
10,000
250,744
64,157
10,000
133,891
17,248
10,000
117,096
450,892
375,450
286,694
241,802
Other taxation and social security
Group
PAYE/NI control
VAT control
Society
2016
£
2015
£
2016
£
2015
£
11,355
52,802
17,248
11,355
52,802
17,248
64,157
17,248
64,157
17,248
Page 36
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2016
17.
CREDITORS:
Amounts falling due within one year (continued)
Group
£
Society
£
£
£
Deferred income
18.
Deferred income at 1 October 2015
Resources deferred during the year
Amounts released from previous years
-
149,502
191,273
(149,502)
-
27,506
39,140
(27,506)
Deferred income at 30 September 2016
-
191,273
-
39,140
CREDITORS:
Amounts falling due after more than one year
Group and Society
Other loans
2016
£
2015
£
27,200
38,175
Included within the above are amounts falling due as follows:
Group and Society
2016
£
2015
£
27,200
38,175
Between two and five years
Other loans
19.
CONTINGENT LIABILITIES
The capital grants received in respect of the EPIC building are subject to certain terms and conditions,
breach of which may render the grants wholly or partially repayable. It is the Council Members opinion
that such a repayment is remote.
Page 37
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2016
20.
STATEMENT OF FUNDS
Brought
Forward
Income
Expenditure
Transfers
in/out
Carried
Forward
£
£
£
£
£
17,582
31,093
(25,447)
886,363
3,846,071
4,047,150
2,721,238
-
(2,557,051)
(104,016)
8,779,584
2,721,238
(2,661,067)
-
8,839,755
8,797,166
2,752,331
(2,686,514)
-
8,862,983
16,800
2,500,000
(2,400)
-
2,514,400
(707)
-
14,698
(2,689,621)
-
11,392,081
Designated funds
FarmLincs Fund
-
23,228
General funds
Free reserves
Revaluation reserve
Fixed asset reserve
Total Unrestricted funds
(898,731)
898,731
151,819
3,846,071
4,841,865
Endowment funds
Endowment Funds
Restricted funds
Lincfarms Fund
Total of funds
15,405
8,829,371
5,252,331
The FarmLincs Fund has been set aside for the specific purpose of the promotion and advancement of
the Agricultural Industry and Countryside in Lincolnshire.
The fixed asset reserve and the revaluation reserve are not free funds and together with the
endowment fund (which includes the net book value of the Oak Framed Display Building), represent the
net carrying value of tangible fixed assets. The revaluation reserve represents unrecognised gains on
the revaluation of the Society’s freehold land.
The remainder of general funds are free reserves and these incorporate the previously separately
identified balance of the Epic Project fund which represented the aggregate of grants,donations and other
amounts received in connection with the EPIC project generally, and the construction of the EPIC building
in particular as reduced by the impairment adjustment dealt with in the year ended 30 September 2014.
The Endowment Fund includes the net book value of the Oak Framed Display Building, gifted to the
charity during 2002 by the Lincwood Fund. The fund balance will be reduced by the depreciation charged
on the building. Additionally, the endowment fund includes the legacy asset donated to the charity.
Further details can be found in note 14.
The Lincfarms Fund represents a bursary that has been established in association with Lincolnshire
County Council in respect of providing visits to farms for underprivileged people. It is administered by the
FarmLincs Committee.
Page 38
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2016
SUMMARY OF FUNDS
Brought
Forward
Designated funds
General funds
Endowment funds
Restricted funds
21.
Expenditure
Transfers
in/out
Carried
Forward
£
£
£
£
£
17,582
8,779,584
31,093
2,721,238
(25,447)
(2,661,067)
-
23,228
8,839,755
8,797,166
2,752,331
(2,686,514)
-
8,862,983
16,800
15,405
2,500,000
-
(2,400)
(707)
-
2,514,400
14,698
8,829,371
5,252,331
(2,689,621)
-
11,392,081
ANALYSIS OF NET ASSETS BETWEEN FUNDS
Tangible fixed assets
Fixed asset investments
Debtors due after more than 1
year
Net current assets
Creditors due within one year
Creditors due in more than one
year
Endowment
funds
Restricted
funds
Unrestricted
funds
Total
funds
Total
funds
2016
£
2016
£
2016
£
2016
£
2015
£
8,687,936
-
8,702,336
2,500,000
7,910,021
-
14,400
2,500,000
2,514,400
22.
Income
14,698
14,698
125,000
528,141
(450,894)
125,000
542,839
(450,894)
340,000
992,975
(375,450)
(27,200)
(27,200)
(38,175)
8,862,983
11,392,081
8,829,371
RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW
FROM OPERATING ACTIVITIES
Net income for the year (as per Statement of financial activities)
Adjustment for:
Depreciation charges
Legacy asset
Profit on the sale of fixed assets
Decrease in debtors
Increase in creditors
Net cash provided by operating activities
2016
£
2015
£
2,562,710
711,526
107,346
(2,500,000)
(319,480)
192,488
75,442
80,980
(804,904)
87,480
43,933
118,506
119,015
Page 39
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2016
23.
24.
ANALYSIS OF CASH AND CASH EQUIVALENTS
2016
£
2015
£
Cash in hand
354,665
827,428
Total
354,665
827,428
RELATED PARTY TRANSACTIONS
Subscriptions and other income includes income from Trustees or companies in which they have an
interest.
Additionally, during the year,the society purchased materials and services from the following
organisations in which a Trustee of the charity has an interest.
C Rothery
Spridlington Manor Farms
Woldmarsh Producers Ltd
Witham Oil and Paint
2016
£
2015
£
118
151,697
3,951
234
1,894
285,656
1,767
All of the above transactions were carried out via the normal course of business and on an arms lenth
basis.
25.
PRINCIPAL SUBSIDIARIES
Company name
Percentage
Shareholding
Lincolnshire Showground Limited
100
Lincolnshire Showground Limited was formerly known as Lincolnshire Events Centre Limited.
26.
RELATED PARTY DISCLOSURES
The Society was under the control of the Trustees throughout the current and previous year.
The Society provides administrative services to and receives donations from its trading subsidiary. During
the year various costs were recharged by the Society to Lincolnshire Showground Limited, in addition to
which this company pays to the Society a Licence fee £180,000 (2015: £180,000) and makes Gift Aid
payment as per note 4. The total outstanding to the Society from Lincolnshire Showground Limited at the
year end is £196,715 (2015: £261,200).
Page 40
LINCOLNSHIRE AGRICULTURAL SOCIETY
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2016
27.
INDEMNITY INSURANCE
Insurance costs of £1,862 (2015: £1,802) have been incurred to indemnify the Council Members or other
officers against the consequences of any neglect or default on their part.
28.
FIRST TIME ADOPTION OF FRS 102
It is the first year that the Society has presented its financial statements under Charity SORP (FRS 102).
The following disclosures are required in the year of transition. The last financial statements prepared
under previous UK GAAP were for the year ended 30 September 2015 and the date of transition to
Charity SORP (FRS 102) was therefore 1 October 2014. As a consequence of adopting Charity SORP
(FRS 102), a number of accounting policies have changed to comply with those standards.
Reconciliations and descriptions of the effect of the transition to Charity SORP (FRS 102) on total funds
and net income/(expenditure) for the comparative period reported under previous UK GAAP and SORP
2005 are given below.
RECONCILIATION OF TOTAL FUNDS
Notes
1 October 2014 30 September 2015
£
£
Total funds under previous UK GAAP
Holiday pay accrual
8,117,846
-
8,838,856
(9,485)
Total funds reported under FRS 102
8,117,846
8,829,371
Reconciliation of net income
Notes
30 September 2015
£
Net income previously reported under UK GAAP
Holiday pay accrual
721,011
(9,485)
Net movement in funds reported under FRS 102
711,526
In addition, within note 20 to the financial statements general funds have now been analysed to
separately identify the fixed asset reserve and revaluation reserve and as part of this, the previous
separately shown Epic Project Fund has been reclassified as part of the overall total of general funds for
the purpose of clarity.
Page 41