LINCOLNSHIRE AGRICULTURAL SOCIETY · LINCOLNSHIRE AGRICULTURAL SOCIETY ... A A Smith, P Vergette D J Wallis, S Ward, R Willey, S MS Williams Elected Members of ... C Wray University

Registered number: 1845726Charity number: 515652

LINCOLNSHIRE AGRICULTURAL SOCIETY

(A Company Limited by Guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2016



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

21

Notes to the Financial Statements

22 - 41



TRUSTEESFOR THE YEAR ENDED 30 SEPTEMBER 2016

Council Mrs J HilesC C Rothery, TreasurerA C Read, Honorary Show DirectorG Bottom, PresidentR M Battle, President ElectLord Lieutenant of Lincolnshire T E Dennis, Patron

Trustees Mrs J HilesC C RotheryA C ReadW B R GranthamI H WalterR E HowardN R BottomS WardA Buckley (appointed 11 January 2016)A Smith (appointed 11 January 2016)R O Collett (resigned 11 January 2016)H Bichan (resigned 11 January 2016)

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REFERENCE AND ADMINISTRATIVE DETAILS OF THE SOCIETY AND ADVISERSFOR THE YEAR ENDED 30 SEPTEMBER 2016

Company registerednumber 1845726

Charity registerednumber 515652

Registered office Lincolnshire ShowgroundGrange-de-LingsLincoln, LN2 2NA

Chief executive officer &Company secretary

J Southall

Past PresidentsBaroness Byford DBE, 2006J A C Godfrey CBE, 2007R W Parker, 2008The Earl of Yarborough, 2009H Bourn, 2010Professor David Chiddick, 2011Lord Taylor of Holbeach, 2012N D S Brown, 2013R G Needham, 2014Lady Sarah McCorquodale, 2015

Independent auditors Streets Audit LLPChartered Accountants and Statutory AuditorTower HouseLucy Tower StreetLincoln, LN1 1XW

Bankers Clydesdale BankUnit 8 Cygnet RoadHamptonPeterborough, PE7 8FD

Natwest Bank Plc225 High StreetLincoln, LN2 1AZ

Solicitors C C G HunterAndrew & CoSt Swithins SquareLincoln, 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

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REFERENCE AND ADMINISTRATIVE DETAILS OF THE SOCIETY AND ADVISERSFOR THE YEAR ENDED 30 SEPTEMBER 2016

Advisers (continued)

Life Members of theCouncil

G E Albone, M E Dickinson, M G Godson, W G Henson, C E N Howard, G J BRead, M H B Read, Mrs S A Richardson

Elected Members ofCouncil (due to retire inJanuary 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 RMatthews, T R Needham, L Parker, D Pridgeon, A C Read, D I Richardson, C CRothery, C G Rowles Nicolson DL, A A Smith, P Vergette D J Wallis, S Ward, RWilley, S MS Williams

Elected Members ofCouncil ( due to retire inJanuary 2018)

R M Battle, Mrs E A Coy, Ms H Clough, D J Creasey, R N Crust, A E J Fowler, PGilbert, T Garner, Mrs J Godfrey, C M Godson, J Grantham, R Holmes, T SKelway, 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 HWalter, Mr C Welby, Mr I Watson, A Buckley, Mrs S Moncaster, M Poucher, JBrant

Chief Stewards Catering and Public Services- R E HowardCountryside- J W B GranthamEquine- S MoncasterLivestock- M PoucherTrade- C M GodsonFood Court and the Mews- R N CrustTraffic- L ParkerAdmissions- R Holmes

Co-opted Members Lincolnshire and South Humberside National Farmers' Union- Mrs A WilloughbyLincolnshire Chamber of Commerce and Industry- Mrs G RichardsonLincolnshire Branch of the Country Land and Business Association- G RowlesNicolsonLincolnshire (Holland) National Farmers' Clubs - C WrayUniversity of Lincoln- D StaintonLincolnshire Federation of Young Farmers' Clubs- S GarrickBritish Agricultural and Garden Machinery Association- P ArrandUnite the Union- R WestWest Lindsey District Council- M Di Salvatore

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TRUSTEES' REPORT


The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annualreport together with the audited financial statements of Lincolnshire Agricultural Society (the Society and thegroup) for the year ended 30 September 2016.

Since the Society and the group qualifies as small under section 383, the strategic report required of mediumand large companies under The Companies Act 2006 (Strategic Report and Director's Report) Regulations2013 is not required.

Structure, governance and management a. CONSTITUTION Lincolnshire Agricultural Society is a company limited by guarantee governed by its Memorandum and Articlesof Association amended to allow for the current governance arrangements on 7th January 2010. It is registeredas 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 sustainablemanagement of natural resources.

As a Registered Charity we pursue this purpose through a wide variety of activities, the aim of this AnnualReport 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 thesubscription due annually in advance on 31st January each year (subject to the right of the Council to declineany application). Each member agrees to contribute £1 in the event of the charity winding up. In 2016 there are2,461 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 Councilmeetings. 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 makingprocesses, the business plan and recent financial performance of the charity. During the induction day theymeet key employees and other Trustees. Trustees are encouraged to attend external training eventsappropriate to their role.

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TRUSTEES' REPORT (continued)


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 ofthe 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 thedecisions of the Council, Board of Trustees and Board sub committees in the direction of the annual show andthe 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 theSociety including the administration and management of the Society’s land and property. The Trustees meet ona regular basis, currently quarterly.

In accordance with the Memorandum and Articles of Association the Board of Trustees may establish othercommittees for specific purposes. During the year the following such committees operated, reporting asappropriate to the Board of Trustees:

The Show Committee to concentrate on all aspects of the annual ShowThe Education Committee to develop the educational work of the Society including the Lincolnshire FarmingConference, the School’s Challenge, Countryside Lincs and Farmhouse breakfast week.The Finance Committee – to provide scrutiny of the Society's financesThe Development Committee to concentrate on the development of the Showground siteThe 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 effectiveoperations the CEO has delegated authority for operational matters including finance and employment and issupported by permanent staff.

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e. RELATED PARTY RELATIONSHIPS The Society provides administrative services to, and receives donations from, it’s trading subsidiary LincolnshireShowground Limited.

The Society paid a total of £3,800 from revenue during the year by way of subscriptions and affiliation fees toorganisations 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 andorganisations 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 CharityThe Society elects to support a charity each year and this year the nominated charity is Macmillan CancerSupport.

Awards and Prizes have been made to leading students at the University of Lincoln and Bishop BurtonRiseholme College.

Donations of Lincolnshire Show tickets are selectively given to children’s educational groups to supportfundraising activities such as auctions and raffles throughout the county. This helps to strengthen theassociation with the future generation of the county and help raise awareness through the annual Show of thelink 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 thatwere undertaken with organisations in which any member of the Council of the Society has an interest are listedin Note 22 of the financial statements.

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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 betteroperational and financial planning.

Objectives and Activities a. OBJECTIVES In setting objectives and planning for activities, the Trustees have given due consideration to general guidancepublished 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.

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Achievements and performance a. REVIEW OF ACTIVITIES During the year ended 30th September 2016, the trustees have continued to pursue the stated objectives of theSociety including staging the 132nd Lincolnshire Show seeking to engage the wider community including bothbusiness and public whilst still retaining its agricultural roots. There are numerous facets to the Show and belowis listed a few of those giving an overview of the areas of interest that combine together to support the Society'scharitable objectives:

2016 Schools' ChallengeThe Schools’ Challenge competition is open to all Primary, Secondary, Special and Independent Schools inLincolnshire and Rutland. Schools choose from one of our ten exciting challenges all linked to the curriculumand 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 pupilsresearch their project and then showcase their learning and understanding to both the judges and members ofthe public at the Lincolnshire Show.

The popularity of this area of the Show continues to grow from strength to strength and this year 61 schoolsparticipated, showcasing their abilities and competing to become champions in their school category. The pupilsexcel themselves with their creativity and confidence and the enthusiasm for food, farming and sustainability isinfectious. 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 CourtThe Food Court is continuing to develop with an excellent mix of food and drink at the Show this year - fromacross Lincolnshire and further afield. The cookery demonstration area is now fully branded as TheLincolnshire Kitchen and once again proved a huge hit. We offered a packed and varied timetable across the 2days – working with both Lincolnshire chefs and producers. We also welcomed a student from Lincoln MinsterSchool, who was regional winner of the Rotary Young Chef of the Year competition. Lincolnshire is justifiablyproud of its great food heritage and culture and it will all be on display in the Food Court again in 2017.

Discovery ZoneThe Discovery Zone continues to grow and the introduction of the Education Marquee proved very popular thisyear, the theme being the potato story. The theme for 2017 will be The Grain Journey. The educational arm ofthe Knights Trail will be launched at the 2017 Lincolnshire Show and we are hoping to have a static heritagedisplay in the Discovery Zone.

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Countryside AreaThe additional seating in the Countryside Area was very well received as was the new demonstration in the ringfrom a local Flyball team. The army filled the area previously occupied by Frontier but Steven Bennett, cheffrom the Comfy Duck at the Oakland’s Hotel is utilising this area. From a marquee he’ll be offering afternoontea with a glass of prosecco, charcuterie and cheese plates etc.

Aviation ZoneThe Aviation Zone was a popular addition to the Show this year and something we will be looking to developand build on in the future.

Long Service AwardsThese 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 acontinuous period in excess of 40 years. This year the recipients racked up a staggering 1183 years between 27individuals, with two recipients having achieved 50 years of continuous service with the same employer.

Livestock and Equine Classes, Awards and Competitio nsBreed promotion, support and advancement are an integral part of the Show and attract a large number ofcatalogued entries:Equine 1,697Livestock 1,197

The Show continues to support breeders and farmers alike and has the benefit of many long standing exhibitorsnot wanting to miss the show.

The Young Farmers' Clubs compete in the Inter County Judging Competitions to help to nurture the nextgeneration of judges. There is also an opportunity for young handlers to link into the Lincoln Red Beef producersto take part in a special competition encouraging the transfer of practical skills and knowledge from farmer toyoung handler.

Specific young handler classes in the Beef, Dairy, Sheep and Pig sections are helping to encourage the nextgeneration of Stockmen into the Show.

The Equine Section continues to be well supported with entries, due to an excellent reputation throughout theShowing Community, having good stewards, judges and rings so is continually awarded a large number ofHorse of the Year Show Qualifiers.

Other areas of competition include a Farriery Competition, Flower Show, Floral Art, Show Chic, Young FarmersCompetitions, Schools Challenge and Trade Awards.

Livestock ToursThe LAS undertakes tours of the Livestock Lines for Primary Schools during the Show to educate childrenwhich has excellent uptake and is being expanded to tours of the Machinery Lines.

Meet a MooThe Livestock Area also has the ‘Meet a Moo’ marquee which is open to the general public throughout the Showand includes a variety of different cattle and relevant information.

EducationThe Education Committee continues to be an important part of delivering our educational remit. Our educationalprogramme is developing as new initiatives are being established to engage children and young people withfood, farming and the environment.

Countryside Lincs was established in March 2015, with the purpose of bringing Lincolnshire food, farming and

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heritage to a much wider audience. The event is split in various zones including the Explore it Zone, Make itZone, 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 1,000in 2015 to over 3,000 in 2016.

In January, we invite five different Primary Schools from the more urban areas of Lincolnshire to celebrate thenational campaign ‘Shake up Your Wake Up’. The pupils discover the importance of breakfast and celebrate allthe wonderful breakfast produce that is grown in the county of Lincolnshire. A fun-packed morning of activities isplanned including making fruity breakfast smoothies, seed planting to learn where our cereals come from andthe children have the opportunity to meet a ‘real’ farmer, porridge making and trying a variety of different tastytoppings - all before tucking into their very own delicious breakfast!

In 2016 we launched the first Lincolnshire ‘Tractors into Schools’ project, a joint initiative between theLincolnshire Agricultural Society and the NFU. The campaign aims to link local farmers with Primary Schools tobuild lasting relationships and educate children on the importance of farming, and to help them gain anunderstanding of where their food comes from.

The Lincolnshire Farming Conference was held on the 1st March 2016 and over 300 attendees turned out tomeet a host of industry experts from around the county who gave a series of talks and seminars on a number ofleading edge topics.

The development of the LAS under 35’s group continues, with regular visits and networking events the grouphas grown to over 120 members who interact and discuss farming and agriculture alongside building newfriendships and connections.

Food and Gift FairIn 2015 we welcomed over 150 stands to the Food & Gift Fair spanning both the Epic Centre and the ExhibitionHall selling a variety of Lincolnshire produce and wonderful gifts. The Lincolnshire Kitchen was launched at the2015 Food & Gift Fair showcasing a variety of local chefs and producers – all helping us prepare for the festiveseason. 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 providedby 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 evenwriting their letter to Father Christmas.

Trading ActivitiesLincolnshire Showground Limited, the trading Company and wholly owned subsidiary of the Society activelymarketed, administered and accounted for numerous events on the Showground. The business has continuedto develop and new initiatives have been implemented. The range of events continues to grow with regularArthur Swallows Antiques Fairs, various conferences and exhibitions, training sessions and balls. Additionallywe hold a large number of annual events such as Construction Week, The Motorhome Season Finale, Steamand Vintage Rally and the One Event. This year saw the Showground host Elton John for an evening concert inJune, with 17,000 people in attendance the concert was greatly received and was followed by Ocean ColourScene in September. These concerts have put the Showground on the map for future music events proving wecan successfully host even the biggest names within the industry.

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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 itsreserves policy, have operated a policy of keeping available funds in a Treasury Reserve Account investedeither daily or weekly and seek to achieve a deposit interest which matches or exceeds inflation as measured bythe Retail Prices Index. Financial review a. GOING CONCERN After making appropriate enquiries, the trustees have a reasonable expectation that the Society has adequateresources to continue in operational existence for the foreseeable future. For this reason they continue to adoptthe going concern basis in preparing the financial statements. Further details regarding the adoption of thegoing 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 theSociety’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.

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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 buildon the improvements shown in this financial year, this growth is vital to help continue to support the charitableobjectives of the Society and enable the development on new educational projects. The market for small localevents 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 offacilities on offer where we can accommodate indoor and outdoor events that are not replicated elsewhere inLincolnshire and increasing business from this sector of the Events market remains a key priority. Marketinginitiatives 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 theBishop 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 befurther developed for 2017. The Show comes Town event and Open Farm Sunday will continue to help promotethe Show to new audiences. We will also welcome the Longhorn Show in 2017 as an added attraction to ourLivestock area. We are also looking to introduce a Modern Machinery Parade into the main ring to showcasethe 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) areresponsible for preparing the Trustees' Report and the financial statements in accordance with applicable lawand 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 lawthe Trustees must not approve the financial statements unless they are satisfied that they give a true and fairview of the state of affairs of the charitable company and the group and of the incoming resources andapplication of resources, including the income and expenditure, of the charitable group for that period. Inpreparing 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 explainthe charitable company and the group's transactions and disclose with reasonable accuracy at any time thefinancial position of the charitable group and enable them to ensure that the financial statements comply withthe Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company andthe group and hence for taking reasonable steps for the prevention and detection of fraud and otherirregularities.

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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'sauditors are unaware, and

• that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware ofany information needed by the Society and the group's auditors in connection with preparing their reportand 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 and signed on their behalf by:

Mrs J HilesTrustee

C C Rothery Trustee

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INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF LIN COLNSHIRE AGRICULTURAL SOCIETY

We have audited the financial statements of Lincolnshire Agricultural Society for the year ended 30 September2016 which comprise the group Statement of Financial Activities, the group and Society Balance Sheets, thegroup Cash Flow Statement and the related notes. The financial reporting framework that has been applied intheir preparation is applicable law and United Kingdom Accounting Standards (United Kingdom GenerallyAccepted Accounting Practice). This report is made solely to the charitable Society's members, as a body, in accordance with section 151 of theCharities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken sothat we might state to the charitable Society's members those matters we are required to state to them in anAuditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assumeresponsibility to anyone other than the charitable Society and its members, as a body, for our audit work, for thisreport, or for the opinion we have formed. RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND AUDITOR S As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors ofthe charitable Society for the purposes of company law) are responsible for the preparation of the financialstatements 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 2011rather than the Companies Act 2006. Accordingly we have been appointed as auditors under section 151 of theCharities Act 2011 and report to you in accordance with regulations made under section 154 of that Act. Ourresponsibility is to audit and express an opinion on the financial statements in accordance with applicable lawand International Standards on Auditing (UK and Ireland). Those standards require us to comply with theAuditing 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 togive reasonable assurance that the financial statements are free from material misstatement, whether causedby fraud or error. This includes an assessment of: whether the accounting policies are appropriate to thegroup'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 ofthe 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 informationthat is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us inthe course of performing the audit. If we become aware of any apparent material misstatements orinconsistencies 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, forthe 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.

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INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF LIN COLNSHIRE AGRICULTURAL SOCIETY

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEP TION We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to reportto 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 requirementto prepare a Group Strategic Report.

Streets Audit LLP Chartered Accountants and Statutory Auditor Tower HouseLucy Tower StreetLincoln, LN1 1XWDate:

Streets Audit LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

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CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCO RPORATING INCOME ANDEXPENDITURE ACCOUNT


Endowmentfunds

Restrictedfunds

Unrestrictedfunds

Totalfunds

Totalfunds

Note2016

£2016

£2016

£2016

£2015

£

INCOME AND ENDOWMENTSFROM:

Income from donations andlegacies 2 2,500,000 - 174,488 2,674,488 148,071

Charitable activities 6 - - 958,343 958,343 995,215Other trading activities 3,4 - - 1,287,052 1,287,052 1,171,413Investments 5 - - 11,634 11,634 19,149Other income 7 - - 320,814 320,814 806,911

TOTAL INCOME ANDENDOWMENTS 2,500,000 - 2,752,331 5,252,331 3,140,759

EXPENDITURE ON:

Raising funds - - 976,159 976,159 872,940Charitable activities 2,400 707 1,710,355 1,713,462 1,556,293

TOTAL EXPENDITURE

2,400 707 2,686,514 2,689,621 2,429,233

NET INCOME /(EXPENDITURE) ANDMOVEMENT IN FUNDS

2,497,600 (707) 65,817 2,562,710 711,526

RECONCILIATION OF FUNDS:

Total funds brought forward 16,800 15,405 8,797,166 8,829,371 8,117,845

TOTAL FUNDS CARRIEDFORWARD

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.

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(A Company Limited by Guarantee)REGISTERED NUMBER: 1845726

CONSOLIDATED BALANCE SHEETAS AT 30 SEPTEMBER 2016

2016 2015Note £ £ £ £

FIXED ASSETS Tangible assets 13 8,702,336 7,910,021 Investments

14 2,500,000 -

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 Cash at bank and in hand 354,665 827,428

667,837 1,332,975 CREDITORS: amounts falling due within

one year 17 (450,892) (375,450) NET CURRENT ASSETS 216,945 957,525 TOTAL ASSETS LESS CURRENT LIABILITIES 11,419,281 8,867,546 CREDITORS: amounts falling due after

more than one year 18 (27,200) (38,175)

NET ASSETS 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

TOTAL FUNDS

11,392,081 8,829,371

The Trustees consider that the Society is entitled to exemption from the requirement to have an audit under theprovisions of section 477 of the Companies Act 2006 ("the Act") and members have not required the Society toobtain an audit for the year in question in accordance with section 476 of the Act. However, an audit is requiredin accordance with section 151 of the Charities Act 2011.

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect toaccounting records and the preparation of financial statements.

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CONSOLIDATED BALANCE SHEET (continued)

AS AT 30 SEPTEMBER 2016

The financial statements were approved by the Members of Council on andsigned on their behalf, by:

Mrs J Hiles C Rothery


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(A Company Limited by Guarantee)REGISTERED NUMBER: 1845726

SOCIETY BALANCE SHEETAS AT 30 SEPTEMBER 2016

2016 2015Note £ £ £ £

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 ASSETSDebtors: 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 Cash at bank 137,325 512,474

503,633 1,199,323 CREDITORS: amounts falling due within

one year 17 (286,694) (241,802) NET CURRENT ASSETS 216,939 957,521

TOTAL ASSETS LESS CURRENT LIABILITIES 11,419,279 8,867,546 CREDITORS: amounts falling due after

more than one year 18 (27,200) (38,175)

NET ASSETS 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

TOTAL FUNDS 11,392,079 8,829,371

The Trustees consider that the Society is entitled to exemption from the requirement to have an audit under theprovisions of section 477 of the Companies Act 2006 ("the Act") and members have not required the Society toobtain an audit for the year in question in accordance with section 476 of the Act. However, an audit is requiredin accordance with section 151 of the Charities Act 2011.

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect toaccounting records and the preparation of financial statements.

Page 19



SOCIETY BALANCE SHEET (continued)

AS AT 30 SEPTEMBER 2016

The financial statements were approved by the Members of Council on andsigned on their behalf, by:

Mrs J Hiles C Rothery


Page 20



CONSOLIDATED CASH FLOW STATEMENTFOR THE YEAR ENDED 30 SEPTEMBER 2016

2016 2015Note £ £

Cash flows from operating activities Net cash provided by operating activities 22 118,506 119,015

Cash flows from investing activities:Proceeds from sale of Gusto Homes 320,100 139,200Proceeds from the sale of tangible fixed assets 250 712,415Purchase of tangible fixed assets (900,531) (93,772)Proceeds from sale of investments - 1,134,445Purchase of investments (113) - 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)

Change in cash and cash equivalents in the year (472,763) 568,784

Cash and cash equivalents brought forward 827,428 258,644

Cash and cash equivalents carried forward 23 354,665 827,428

Page 21



NOTES TO THE FINANCIAL STATEMENTS


1. ACCOUNTING POLICIES

1.1 General information

As set out in the trustees' report, Lincolnshire Agricultural Society is an incorporated charityregistered 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 judgemen t

Estimates and judgements are continually evaluated and are based on historical experience andother factors, including expectations of future events that are believed to be reasonable under thecircumstances.

Critical accounting estimates and assumptions:

The Society makes estimates and assumptions concerning the future. The resulting accountingestimates 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 restrictionsapplying 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 byCharities: Statement of Recommended Practice applicable to charities preparing their accounts inaccordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standardapplicable 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. Assetsand liabilities are initially recognised at historical cost or transaction value unless otherwise stated inthe relevant accounting policy.

The Statement of Financial Activities (SOFA) and Balance Sheet consolidate the financialstatements of the Society and its subsidiary undertaking. The results of the subsidiary areconsolidated on a line by line basis.

No separate SOFA has been presented for the Society alone as permitted by section 408 of theCompanies Act 2006.

1.4 Reconciliation with previous Generally Accepted Acc ounting Practice

In preparing these accounts, the Trustees have considered whether in applying the accountingpolicies required by FRS 102 and the Charities SORP FRS 102 the restatement of comparativeitems was required.A reconciliation of total funds can be found in note 28.

Page 22





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 2006not to present its own Income and Expenditure Account.

1.6 Turnover

Turnover comprises revenue recognised by the Society in respect of goods and services suppliedduring 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 Trusteesnamed on page 2. In the event of the Society being wound up, the liability in respect of theguarantee 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 infurtherance of the general objectives of the Society and which have not been designated for otherpurposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed bydonors or which have been raised by the Society for particular purposes. The costs of raising andadministering such funds are charged against the specific fund. The aim and use of each restrictedfund 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 theincome 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 thatprobate has been granted, the estate has been finalised and notification has been made by theexecutor(s) to the Trust that a distribution will be made, or when a distribution is received from theestate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can bemeasured reliably and the Society has been notified of the executor's intention to make adistribution. Where legacies have been notified to the Society, or the Society is aware of thegranting of probate, and the criteria for income recognition have not been met, then the legacy istreated as a contingent asset and disclosed if material.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant isrecognised at the time of the donation.

Income tax recoverable in relation to investment income is recognised at the time the investmentincome is receivable.

Page 23






1.10 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economicbenefit to a third party, it is probable that a transfer of economic benefits will be required insettlement and the amount of the obligation can be measured reliably. Expenditure is classified byactivity. 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 singleactivity are allocated directly to that activity. Shared costs which contribute to more than one activityand support costs which are not attributable to a single activity are apportioned between thoseactivities on a basis consistent with the use of resources. Central staff costs are allocated on thebasis 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 costsof disseminating information in support of the charitable activities. Support costs are those costsincurred directly in support of expenditure on the objects of the Society and include projectmanagement carried out at Headquarters.

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred intrading activities that raise funds.

Charitable activities and Governance costs are costs incurred on the Society's educationaloperations, including support costs and costs relating to the governance of the Society apportionedto charitable activities.

1.11 Tangible fixed assets and depreciation

No depreciation is provided on Freehold Land or on assets in the course of construction untilbrought into use when they are transferred to the relevant asset heading.

No depreciation has been charged on the EPIC building and Tennyson Pavilion within theseaccounts as the directors are of the opinion that as a sustainable building it is expected to maintainits 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 indicatethat the carrying value of any fixed asset may not be recoverable. Shortfalls between the carryingvalue of fixed assets and their recoverable amounts are recognised as impairments. Impairmentlosses are recognised in the Statement of Financial Activities.

Tangible fixed assets are carried at costor valuation , net of depreciation and any provision forimpairment. Depreciation is provided at rates calculated to write off the costor valuation of fixedassets, less their estimated residual value, over their expected useful lives on the following bases:

Services & installations - 5/10% straight lineMachinery & office equipment - 20/33% straight line

Page 24






1.12 Revaluation of tangible fixed assets

The Society has adopted the revaluation model to revalue items of property, plant and equipmentwhose fair value can be measured reliably. The revaluations shall be made with sufficient regularityto ensure that the carrying amount does not differ materially from that which would be determinedusing fair value at the end of the reporting period.

The fair value of land and buildings is usually determined from market-based evidence by appraisalthat is normally undertaken by professionally qualified valuers. The fair value of items of plant andmachinery is usually their market value determined by appraisal.

Revaluation gains and losses are recognised in other comprehensive income and accumulated inequity.

1.13 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at theirtransaction cost and subsequently measured at fair value at the Balance Sheet date, unless fairvalue cannot be measured reliabily in which case it is measured at cost less impairment. Investmentgains 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 undertakingsInvestments 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 measuredreliably 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 shortmaturity of three months or less from the date of acquisition or opening of the deposit or similaraccount.

Page 25






1.17 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a pastevent, it is probable that a transfer of economic benefit will be required in settlement, and theamount of the settlement can be estimated reliably. Liabilities are recognised at the amount that theSociety anticipates it will pay to settle the debt or the amount it has received as advanced paymentsfor the goods or services it must provide. Provisions are measured at the best estimate of theamounts 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 discountrate that reflects the risks specific to the liability. The unwinding of the discount is recognised withininterest 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 instrumentsThe Society only has financial assets and financial liabilities of a kind that qualify as basic financialinstruments. Basic financial instruments are initially recognised at transaction value andsubsequently measured at their settlement value with the exception of bank loans which aresubsequently 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 onpurchase. This includes the perpetual cups and trophies.

2. INCOME FROM DONATIONS AND LEGACIES

Endowmentfunds

Restrictedfunds

Unrestrictedfunds

Totalfunds

Totalfunds

2016£

2016£

2016£

2016£

2015£

Legacies 2,500,000 - - 2,500,000 -Gift aid and donations - - 45,101 45,101 27,255Subscriptions - - 129,387 129,387 120,816

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 wasto restricted funds

Page 26





3. FUNDRAISING INCOME

Endowmentfunds

Restrictedfunds

Unrestrictedfunds

Totalfunds

Totalfunds

2016£

2016£

2016£

2016£

2015£

Society merchandise - - 290 290 54

In 2015, of the total income from fundraising, £54 was to unrestricted funds and £nil was to restrictedfunds.

4. LINCOLNSHIRE SHOWGROUND LIMITED

On behalf of the Society, the Trustees of the Society hold the whole of the issued ordinary share capitalof Lincolnshire Showground Limited (formerly known as Lincolnshire Events Centre Limited), a companyregistered in England. The subsidiary is used for non-primary purpose trading activities, namely theletting of the facilities on the Society's showground for events other than those organised by the Society inthe furtherance of its objects.

All activities have been consolidated on a line by line basis in the SOFA. The total net profit is gifted tothe Society. A summary of the trading results are shown below:

EndowmentFunds

£

RestrictedFunds

£

UnrestrictedFunds

£

2016£

2015£

Fundraising Income

Turnover - - 1,286,762 1,286,762 1,171,359

Sub total

Fundraising expenses andother costs

-

-

1,280,584

1,286,762

1,171,359

Cost of sales - - 672,205 672,205 593,066Wages and salaries - - 305,979 305,979 279,874

Sub total

-

-

978,184

978,184

872,940

Total - - 308,578 308,578 298,419

Page 27





Contribution to Society from trading activities:

2016 £

2015 £

Licence fee 180,000 180,000Gift Aid 128,578 118,419

Total 308,578 298,419

5. INVESTMENT INCOME

Endowmentfunds

Restrictedfunds

Unrestrictedfunds

Totalfunds

Totalfunds

2016£

2016£

2016£

2016£

2015£

Rental income - - 11,583 11,583 17,127Interest receivable - - 51 51 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 restrictedfunds.

6. INCOME FROM CHARITABLE ACTIVITIES

Endowmentfunds

Restrictedfunds

Unrestrictedfunds

Totalfunds

Totalfunds

2016£

2016£

2016£

2016£

2015£

The Lincolnshire Show - - 882,393 882,393 874,405Lincolnshire Horse Trials - - - - 58,646Food and Gift Show - - 65,914 65,914 56,951Countryside Lincs - - 10,036 10,036 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 torestricted funds.

Page 28





7. OTHER INCOMING RESOURCES

Endowmentfunds

Restrictedfunds

Unrestrictedfunds

Totalfunds

Totalfunds

2016£

2016£

2016£

2016£

2015£

Other income - - 1,334 1,334 2,007Profit on disposal of fixed

assets - - 319,480 319,480 804,904

- - 320,814 320,814 806,911

In 2015, of the total other incoming resources, £806,911 was to unrestricted funds and £nil was torestricted funds.

8. DIRECT COSTS

Unrestrictedfunds

Otherfunds

Total2016

Total2015

£ £ £ £

Show costs 601,534 - 601,534 638,935Repairs and maintenance 496,335 - 496,335 287,106Rates, water, light and heat 38,299 - 38,299 47,770Insurance 40,859 - 40,859 51,125Professional fees and charges 33,622 - 33,622 40,308EPIC Loan Interest - - - 13,194Bank and finance charges 11,856 - 11,856 5,708Postage and telephone 33,887 - 33,887 46,934Membership costs 10,117 - 10,117 8,237Staff related costs 8,779 - 8,779 9,176Bad debts written off 1,449 - 1,449 394Grants, presentations and subscriptions 6,050 - 6,050 6,403Sundries 9,339 - 9,339 8,840FarmLincs 25,447 - 25,447 24,051Lincfarms - 707 707 1,095Wages and salaries 254,935 - 254,935 259,003Pension cost 22,551 - 22,551 17,034Depreciation 104,946 2,400 107,346 80,980

1,700,005 3,107 1,703,112 1,546,293

9. SUPPORT COSTS

Unrestrictedfunds

Total2016

Total2015

£ £ £

Audit Fee 10,350 10,350 10,000

Page 29





10. STAFF COSTS

Staff costs were as follows:

2016 2015

£ £

Wages and salaries 560,914 538,877Pension costs 22,551 17,034

583,465 555,911

The average number of persons employed by the Society during the year was as follows:

2016 2015 No. No.

Ground staff 7 7Management and administration 7 7Events 8 8Facilities 1 1

23 23

The number of higher paid employees was:

As restated 2016 2015

No. No.

In the band £60,001 - £70,000 1 1

The key management personnel of the charity are the trustees, Chief Executive Officer and ManagementTeam. No trustees received any remuneration during the year (2015: £nil). The total remuneration andbenefits paid to the CEO and two (2015 two) members of the Management Team during the yearamounted 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





11. NET INCOMING RESOURCES / (RESOURCES EXPENDED)

This is stated after charging:

2016 2015

£ £

Depreciation of tangible fixed assets:- owned by the charitable group 107,346 80,980

Auditors' remuneration - audit 10,350 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 servicesof of £2,000(2015 - £2,000).

Page 31





13. TANGIBLE FIXED ASSETS

Freeholdproperty

Freeholdland

Plant,machinery &

officeequipment

Services &installations Total

Group and Society £ £ £ £ £

Cost/valuation

At 1 October 2015 3,402,265 4,180,754 279,489 1,471,274 9,333,782Additions - 483,181 32,720 384,630 900,531Disposals - - (1,800) - (1,800)

At 30 September 2016 3,402,265 4,663,935 310,409 1,855,904 10,232,513

Depreciation

At 1 October 2015 - - 173,094 1,250,667 1,423,761Charge for the year - - 34,575 72,771 107,346On disposals - - (930) - (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 thebalance 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 reviewin order to assess a more realistic carrying value for the building based on its value in use to the charitywas 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 beenincluded in the balance sheet at cost was subject to a similar review. The carrying value of both buildingsare 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 takenappropriate advice. The carrying value of the freehold land on an historic cost basis would be £817,864(2015: £334,683).

Page 32





Cost or valuation at 30 September 2016 is as follows:

Land andbuildings

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 thehistorical cost convention as follows:

2016 2015Group and Society £ £

Cost 4,220,129 3,736,948Accumulated depreciation - -

Net book value 4,220,129 3,736,948

Cost or valuation at 30 September 2016 is as follows:

Land andbuildings

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 existinguse basis.

If the land and buildings had not been included at valuation they would have been included under thehistorical cost convention as follows:

2016 2015Society £ £

Cost 4,220,129 3,736,948Accumulated depreciation - -

Net book value 4,220,129 3,736,948

Page 33





14. FIXED ASSET INVESTMENTS

Otherinvestments

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 lateSheila Trafford. Probate was granted on 1 February 2016 and subject to a small number of otherbequests the entire residue of the estate comes to the society. This comprises farm land and buildingsand residual cash. The trustees are aware that there are a number of significant restrictions which willapply 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 financialstatements and as at 30 September 2016 the trustees have estimated the fair value of the bequeathedassets to be £2.5million. A valuation is expected to be undertaken on behalf of the trustees once theproperty has been transferred to the Society and full details of the restrictions are known. This isexpected to be in the financial statements for the year ended 30 September 2017. The legacy has beenincluded in Endowment Funds in note 20 to the financial statements.

Society investments at market value comprise:2016 2015

£ £

Other fixed asset investments 2,500,000 -Group 4 4

Total 2,500,004 4

All the fixed asset investments are held in the UK

Page 34





15. DEBTORS

Group Society

2016 2015 2016 2015£ £ £ £

Due after more than one year

Development mortgage 125,000 340,000 125,000 340,000

Group Society

2016 2015 2016 2015£ £ £ £

Due within one year

Trade debtors 159,328 123,112 16,244 48,068Amounts owed by group undertakings - - 196,715 261,200Prepayments and accrued income 6,818 20,522 6,323 15,668

166,146 143,634 219,282 324,936

DEVELOPMENT MORTGAGE - CONTINGENT ASSET

During the year ended 30 September 2014, the Society granted a 999 year lease of land at HorncastleLane, Scampton to Gusto Partnership Limited who are to develop 18 eco-homes on the site. The initiallease premium of £408,000 was due to be repaid by agreed instalments determined by the sale of theeco-homes. During the year ended 30 September 2016, £215,000 of this has been repaid (2015: £68,000repaid).

There shall then be a further premium payable to the Society on the sale of each house equal to 10% ofthe gross proceeds for each of the eco-houses. The gross sales proceeds will be determined by variousmarket factors and as such is not practicable to quantify these which are therefore included only as theindividual house is sold. During the year ended 30 September 2016 nine houses were sold and £320,100received (2015: £139,200 received for 4 houses).

The Society shall hold a first legal charge over the property and subsequently each eco-home until fullsettlement at which point security shall be released.

16. CURRENT ASSET INVESTMENTS

Group Society

2016 2015 2016 2015£ £ £ £

Bank deposit accounts 22,026 21,913 22,026 21,913

Page 35





Current asset investments

Market Value2016

£

Cost 2016£

Market Value2015

£

Cost 2015£

FarmLincs Fund - Clydesdale 2,840 2,840 2,790 2,790Clydesdale Farm Lincs Funds on

deposit 19,186 19,186 19,123 19,123

Total 22,026 22,026 21,913 21,913

17. CREDITORS:Amounts falling due within one year

Group Society

2016 2015 2016 2015£ £ £ £

Trade creditors 78,646 97,458 78,646 97,458Other taxation and social security (see

below) 64,157 17,248 64,157 17,248Other loans 10,000 10,000 10,000 10,000Accruals and deferred income 298,089 250,744 133,891 117,096

450,892 375,450 286,694 241,802

Other taxation and social securityGroup Society

2016 2015 2016 2015£ £ £ £

PAYE/NI control 11,355 - 11,355 -VAT control 52,802 17,248 52,802 17,248

64,157 17,248 64,157 17,248

Page 36





17. CREDITORS:Amounts falling due within one year (continued)

Group Society

£ £ £ £

Deferred income

Deferred income at 1 October 2015 - 149,502 - 27,506Resources deferred during the year - 191,273 - 39,140Amounts released from previous years - (149,502) - (27,506)

Deferred income at 30 September 2016 - 191,273 - 39,140

18. CREDITORS:Amounts falling due after more than one year

Group and Society

2016 2015£ £

Other loans 27,200 38,175

Included within the above are amounts falling due as follows:

Group and Society

2016 2015£ £

Between two and five years

Other loans 27,200 38,175

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 opinionthat such a repayment is remote.

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20. STATEMENT OF FUNDS

BroughtForward Income Expenditure

Transfersin/out

CarriedForward

£ £ £ £ £

Designated funds

FarmLincs Fund 17,582 31,093 (25,447) - 23,228

General funds

Free reserves 886,363 2,721,238 (2,557,051) (898,731) 151,819Revaluation reserve 3,846,071 - - - 3,846,071Fixed asset reserve 4,047,150 - (104,016) 898,731 4,841,865

8,779,584 2,721,238 (2,661,067) - 8,839,755

Total Unrestricted funds 8,797,166 2,752,331 (2,686,514) - 8,862,983

Endowment funds

Endowment Funds 16,800 2,500,000 (2,400) - 2,514,400

Restricted funds

Lincfarms Fund 15,405 - (707) - 14,698

Total of funds 8,829,371 5,252,331 (2,689,621) - 11,392,081

The FarmLincs Fund has been set aside for the specific purpose of the promotion and advancement ofthe Agricultural Industry and Countryside in Lincolnshire.

The fixed asset reserve and the revaluation reserve are not free funds and together with theendowment fund (which includes the net book value of the Oak Framed Display Building), represent thenet carrying value of tangible fixed assets. The revaluation reserve represents unrecognised gains onthe revaluation of the Society’s freehold land.

The remainder of general funds are free reserves and these incorporate the previously separatelyidentified balance of the Epic Project fund which represented the aggregate of grants,donations and otheramounts received in connection with the EPIC project generally, and the construction of the EPIC buildingin 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 thecharity during 2002 by the Lincwood Fund. The fund balance will be reduced by the depreciation chargedon 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 LincolnshireCounty Council in respect of providing visits to farms for underprivileged people. It is administered by theFarmLincs Committee.

Page 38





SUMMARY OF FUNDS

BroughtForward Income Expenditure

Transfersin/out

CarriedForward

£ £ £ £ £

Designated funds 17,582 31,093 (25,447) - 23,228General funds 8,779,584 2,721,238 (2,661,067) - 8,839,755

8,797,166 2,752,331 (2,686,514) - 8,862,983

Endowment funds 16,800 2,500,000 (2,400) - 2,514,400Restricted funds 15,405 - (707) - 14,698

8,829,371 5,252,331 (2,689,621) - 11,392,081

21. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Endowmentfunds

Restrictedfunds

Unrestrictedfunds

Totalfunds

Totalfunds

2016£

2016£

2016£

2016£

2015£

Tangible fixed assets 14,400 - 8,687,936 8,702,336 7,910,021Fixed asset investments 2,500,000 - - 2,500,000 -Debtors due after more than 1

year - - 125,000 125,000 340,000Net current assets - 14,698 528,141 542,839 992,975Creditors due within one year - - (450,894) (450,894) (375,450)Creditors due in more than one

year - - (27,200) (27,200) (38,175)

2,514,400 14,698 8,862,983 11,392,081 8,829,371

22. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOWFROM OPERATING ACTIVITIES

2016 2015 £ £

Net income for the year (as per Statement of financial activities) 2,562,710 711,526

Adjustment for:Depreciation charges 107,346 80,980Legacy asset (2,500,000) -Profit on the sale of fixed assets (319,480) (804,904)Decrease in debtors 192,488 87,480Increase in creditors 75,442 43,933

Net cash provided by operating activities 118,506 119,015

Page 39





23. ANALYSIS OF CASH AND CASH EQUIVALENTS

2016 2015 £ £

Cash in hand 354,665 827,428

Total 354,665 827,428

24. RELATED PARTY TRANSACTIONS

Subscriptions and other income includes income from Trustees or companies in which they have aninterest.

Additionally, during the year,the society purchased materials and services from the followingorganisations in which a Trustee of the charity has an interest.

2016 2015 £ £

C Rothery 118 234Spridlington Manor Farms - 1,894Woldmarsh Producers Ltd 151,697 285,656Witham Oil and Paint 3,951 1,767

All of the above transactions were carried out via the normal course of business and on an arms lenthbasis.

25. PRINCIPAL SUBSIDIARIES

Company namePercentageShareholding

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. Duringthe year various costs were recharged by the Society to Lincolnshire Showground Limited, in addition towhich this company pays to the Society a Licence fee £180,000 (2015: £180,000) and makes Gift Aidpayment as per note 4. The total outstanding to the Society from Lincolnshire Showground Limited at theyear end is £196,715 (2015: £261,200).

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27. INDEMNITY INSURANCE

Insurance costs of £1,862 (2015: £1,802) have been incurred to indemnify the Council Members or otherofficers 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 preparedunder previous UK GAAP were for the year ended 30 September 2015 and the date of transition toCharity 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 fundsand net income/(expenditure) for the comparative period reported under previous UK GAAP and SORP2005 are given below.

RECONCILIATION OF TOTAL FUNDS Notes 1 October 2014 30 September 2015 £ £

Total funds under previous UK GAAP 8,117,846 8,838,856Holiday pay accrual - (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 721,011Holiday pay accrual (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 toseparately identify the fixed asset reserve and revaluation reserve and as part of this, the previousseparately shown Epic Project Fund has been reclassified as part of the overall total of general funds forthe purpose of clarity.

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LINCOLNSHIRE AGRICULTURAL SOCIETY · LINCOLNSHIRE AGRICULTURAL SOCIETY ... A A Smith, P Vergette D J Wallis, S Ward, R Willey, S MS Williams Elected Members of ... C Wray University