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Irish Cattle Breeding Federation Society Limited. Highfield House, Shinagh, Bandon. Co. Cork.
Telephone: +353 23 882 0222 Web: www.icbf.com
Annual Report
For Calendar Year 2016
Irish Cattle Breeding Federation Society Limited (ICBF)
2016 ICBF Annual Report 1
Table of Contents
SUMMARY of 2016 ................................................................................................... 3
MISSION .................................................................................................................... 4
Genomics ................................................................................................................. 4 Genomic Services Dairy Genomics Dairy Females Beef
Genetic Evaluations ................................................................................................ 5 Common to Beef and Dairy Dairy Specific Beef Specific Interbeef
Cattle Breeding Services ........................................................................................ 6 Services to Herd Books Milk Recording Electronic Data from Farms Electronic Data from Technicians Health and Disease Service HerdPlus® Sire Advice Advisory Support Service Milk Processors OptiMIR
Breeding Schemes .................................................................................................. 8 G€N€ IR€LAND® Dairy and Beef Genetic Gain – Dairy Tully Genetic Gain – Beef Beef Gene Ireland
Financials ............................................................................................................... 11 2016 Results
Resources .............................................................................................................. 11 People Offices Tully Database Computers EDIY Calibration Laboratory
Communications ................................................................................................... 12 Industry Presentations Web Site Weekly Update
2016 ICBF Annual Report 2
International ........................................................................................................... 12
Support ................................................................................................................... 12
Future Prospects ................................................................................................... 13
Financial Statements for Year Ended 31 Dec 2016 ............................................ 16
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BF in 2016 me. Over 2615, the main les through ts flowing to ations for bers have conrable manner
oth dairy andding a breediing profitab
16 the majorssion include
he continuedd (GS) bulls rease in the n
Working withn the genotypock bulls to
Delivery on bDAFM) of tramme (BDP
Growth in thDairy herds tmost 6,000 he
ontinuation oramme, inclus role as a peial cattle.
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rovision of to support www.animalhrogram, agaid in 2016.
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f 2016
enefit our farcommunities gh the delivm the cattle applying sciers and industable decisionwas the Be
6,000 had farjob in 2016
the labs, and farmers. Thef, launched
ntinued to rer to the schem
d beef, we coing infrastru
bility and su
r contributioed:
d high usagein dairy catt
numbers of fe
h the Beef anping of all neensure corre
behalf of ththe Beef DaP).
he HerdPlus®
to 23,200 heerds to the se
of the Materuding the coerformance t
gagement wiPerformancedatabase in
the backgrouthe Anim
healthirelandin with over
rmers, our agthrough ge
very of high breeding da
ence and tectry make thens. The headeef Data andrmers joined turned to geget the geno
he first officid in August oespond in anme.
ontinue to be ucture that wustainability
ons ICBF ma
e of genomictle breeding, females geno
nd Dairy Heewly registerect parentage
he Dept of ata and Gen
® service toerds, an addrvice (a 32%
rnal Beef Breontinued use test centre fo
th the dairy Reports in their strateg
und informatmal Healthd.ie) BVD 2,000,000 an
gri-food in-enetic gain.
value, low atabase, by
chnology to most prof-
dline project d Genomics the scheme tting all the omic evalu-ial genomic
of 2016, and n extremely
focused on ill facilitate of the sec-
ade towards
cally select-with an in-typed
erdbooks to ed pedigree
Agriculture omics Pro-
o Beef and dition of al-% increase).
eeding Pro-of Tully in
or commer-
processors and the use ic planning
tion system h Ireland eradication nimals test-
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The proveationpaniebullsG€Nued tage. geneductigeneing wty alllectewell As bbasedcreasing a
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016, 79,116ry and beef)ore aspects o
2016 Beef ch followed inued to enhas well as penabled subsent of our geef cattle in I
ICBF cattle e the scope o
ns. As in prees to purchs for subseq
N€ IR€LANDto facilitate t The Irish datic gain giviive, more fertic evaluatio
weight, carcal benefited sd through thas data receeef and dairyd on geneticsed profitabiadvanced.
ough we hade, thanks t
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of the ICBF d
Data and on from theance the amo
providing gestantial furtheenetic evalureland.
breeding daof both beef evious yearsasing Irish quent progeD® dairy progthe wide useairy industrying rise to crtile and mons for calvin
ass, maternalsignificantly he Dept of Aived from a y breeding dc evaluationslity of beef a
d a difficult yo continuedust service in
h 2.21 milliwere participdatabase.
Genomics e 2015 Progount of data
enotypes) in er progress i
uations for tr
atabase contand dairy ge
s, 2016 saw bred Holst
eny testing gram. They e of GS bully is benefitincows that arore robust. Ing, docility, l milk and fefrom the exAgriculture variety of ot
decisions are s, the opportand dairy fa
year in termd strong suincome from
3
ion calvingspating in one
Programme,gramme, has
on beef cat-Ireland and
in the devel-raits relevant
inues to im-enetic evalu-the AI com-ein Friesianthrough thealso contin-
s at a youngg from rapid
re more pro-In 2016 beefdirect wean-emale fertili-xtra data col-
schemes, asther sources.increasinglyunity for in-
arming is be-
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2016 ICBF Annual Report 4
providing partners, ICBF ended the year with a small financial surplus.
Our research has shown that those herds who are ful-ly engaged across the range of cattle breeding ser-vices are more profitable. Thus, the ICBF strategic plan is focused on increasing farmer uptake of those recording and breeding services that give them the greatest economic returns. The focus on how this will be done is through greater engagement with the service providers and industry stakeholders. ICBF’s development effort is increasingly focused on stream-lining the flow of data from all sources, while im-proving the quality of the information returned to farms. Initiatives with industry partners are being undertaken to use the ICBF database to provide better quality information to improve decision-making at farm, service providers, and industry, research and breeder levels.
As part of ICBF’s commitment to facilitate Animal Health Ireland (AHI) there has been a substantial amount of database development work again in 2016 to support AHI’s various initiatives.
MISSION ICBF exists to benefit our farmers, our agri-food in-dustry and our wider communities through genetic gain. We do this by the application of science and technology to ensure that our farmers and industry make the most profitable and sustainable decisions. Genetic improvement comes about when the parents of the next generation are genetically superior to their contemporaries. Bringing about improvement re-quires:
Identification, ancestry and quantitative data on those traits of importance for large numbers of animals in each generation.
A genetic evaluation system to identify the genet-ically superior animals in each generation. On-going investment in quality controls on the genet-ic evaluations will be required as more and more of the industry relies on them.
A breeding scheme design that ensures the re-quired data is available, and that farmers use ge-netically superior animals in each generation.
Well informed farmers and industry partners who willingly provide accurate data from their own farms and make full use of the information avail-able in their breeding and farm management de-cisions.
The ICBF Strategy continues to have at its core the engagement of farmers in the use of cattle breeding
services. This is the primary focus of ICBF’s activi-ties.
This Annual Report has been prepared for the pur-pose of providing ICBF shareholders and other stake-holders with a summary of activities and achieve-ments in relation to the objectives of the Society for the 2016 calendar year.
Genomics Cattle breeding continues to undergo a transfor-mation as a result of the use of genomics. This tech-nology is enabling Ireland to be at the forefront of cattle breeding developments internationally.
That Ireland is able to lead in the exploitation of ge-nomic technology is a consequence of a number of key factors.
The availability of large volumes of phenotypic data on large numbers of animals in the ICBF da-tabase
Having access to highly skilled and well-motivated technical staff in both ICBF and Teagasc.
Partnerships with international collaborators that are providing access to knowledge, technology and research material.
The creation of one of the world’s biggest data-bases of genomic data.
Access to the ICBF database and genetic evalua-tion system, to support the research and, roll out subsequent genomic services to the industry
Dairy and beef farmers who are convinced of the merits of the EBI and Eurostar Indexes respec-tively and use them as the main basis for select-ing AI sires and stock bulls.
A forward looking AI breeding industry that re-sponds quickly to the availability of new evalua-tion models and breeding technology, and is will-ing to invest to help them better meet the needs of Irish farmers.
One of the significant achievements in this area in 2016 was the implementation of new genomic evaluations for Beef animals as part of the Beef Data and Genomics Programme
Genomic Services
ICBF continues to develop the infrastructure to ena-ble the Irish cattle breeding industry to fully exploit the benefits of genomic information while at the same time minimising costs. During 2016 the focus
2016
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2016 ICBF Annual Report 12
Offices
ICBF’s main office and database computers are based at Highfield House which is a property owned by Shinagh Estates Limited (SEL) near Bandon, Co. Cork. The accommodation is rented from SEL.
Tully
The Bull Performance Test Centre at Tully. Co. Kil-dare is leased from DAFM. These facilities are in good condition, and have benefited from significant investment from Cattle Breeding Infrastructure Funds in new feed bins in recent years.
Database Computers
ICBF’s database runs on computers located in High-field House and Shinagh House. The ICBF database is constantly undergoing development and upgrades in order to keep on top of the ever growing require-ments associated with increased volumes of data, especially in the new era of genomics.
EDIY Calibration Laboratory
This laboratory, located in Bandon, houses specialist equipment, which is used to ensure the EDIY elec-tronic milk meters used by the industry are perform-ing according to specification.
Communications ICBF is involved in communicating on a wide range of subjects to a large national and international audi-ence involved in all aspects of cattle breeding. Irish achievements in cattle breeding are being noticed internationally as the national infrastructure moves closer to the leading edge.
Our communications include:
Industry Presentations
ICBF continues to be heavily involved in presenting information to the Irish cattle breeding industry through a wide range of meetings and conferences. ICBF is typically involved in three to five meetings per week with farmers and industry staff. ICBF also participates in a number of international conferences presenting papers and playing an active role in lead-ing the development of cattle breeding international-ly.
Web Site
The ICBF web site (www.icbf.com) provides a wide range of information to Irish farmers and the cattle
breeding industry. All herd owners can access their own herd reports (using a sign-on and password) and can also make the reports available to designated ad-visors.
The publications section of the website is a repository for copies of the many presentations made by mem-bers of the ICBF team in 2016 and previous years.
Weekly Update
Every Friday ICBF provides via its website an Up-date covering its activities. This has become well established as a source of the latest information on a wide range of issues of interest to ICBF stakeholders.
International ICBF maintains a number of important international linkages including:
providing leadership for the development of in-ternational beef genetic evaluations through the ICAR Interbeef Working Group,
participation in international research forums in-cluding EAAP, and
participation in international research collabora-tions including the European Wide EEIG spectral data project.
This international network enables ICBF to keep up to date with scientific developments relevant to Irish cattle breeding.
Support ICBF wishes to acknowledge and express its appreci-ation for the support and co-operation received from a large number of individuals and organisations. The relationships we have with the cattle breeding service providers are crucially important in delivering the benefits at farm level. The collaborative nature of ICBF’s activities depends to a large extent on the goodwill of its membership, the wider agricultural community and cattle farmers.
The leadership and support provided by DAFM has been a key to the success of ICBF. DAFM has long recognised the value that can be created through the availability of a well-integrated cattle breeding data-base.
The financial support provided through the Cattle Breeding Infrastructure Funds towards the creation of an efficient cattle breeding infrastructure is now de-livering benefits to farmers, to the cattle breeding industry and to the wider community. We wish to acknowledge this support and express our apprecia-
2016 ICBF Annual Report 13
tion for the leadership and vision that DAFM pro-vides to our industry and cattle breeding in particular.
These many and substantial acts of financial goodwill have been accompanied by a great deal of moral sup-port which the team working for ICBF really appre-ciates.
Future Prospects 2016 has been a year where we have continued to exploit the new cattle breeding technologies for the benefit of Irish farmers. There are real challenges ahead in keeping up with the world’s best in terms of the use of data and technology, and it will require on-going investment.
However, the key to ICBF’s success remains the same - the application of good science, a focus on the needs of farmers, working closely with our stake-holders and a 100% commitment to delivering by a talented and dedicated team.
We are most fortunate to operate in an environment where ICBF’s vision is shared by our Board, our members, DAFM, and, most importantly, Irish Farm-ers.
Sean Coughlan
Michael Doran
Chief Executive Chairman
14
Irish Cattle Breeding FederationSociety Limited
Financial statements for the yearended 31 December 2016
IRISH CATTLE BREEDING FEDERATION SOCIETY LIMITED
15
SOCIETY INFORMATION
COMMITTEE OF MANAGEMENT
Mr. M. Doran (Chairman)Mr. J. O’Sullivan (resigned 7 July 2016) Mr. R. Hinchion (appointed 31 March 2016)Mr. D. Beehan (resigned 21 Jan 2016) Mr. P. Mulvehill (resigned 8 Sept 2016)Mr. D.Buckley (resigned 31 March 2016) Mr. G. RyanMr. V. Gorman Mr. R. WhelanMr. P. Kelly (Vice chairman) Mr. T. FitzgeraldMr. T. Wilson Mr. H. BurnsMr. K. Kiersey (resigned 7 July 2016) Mr. M. RyanMr. K. Kinsella Mr. T.J. O’Sullivan (resigned 8 Sept 2016)Mr. S. O’ Leary (appointed 7 July 2016) Mr. K. Coffey (appointed 8 Sep 2016)Mr. P. Fleming (appointed 8 Sept 2016) Mr. P. Hannan (appointed 7 July 2016)Mr. B. Callanan (appointed 21 Jan 2016)
SECRETARY Mr. J. Carty,Department of Agriculture, Food and the Marine,Pavilion A,Grattan Business Park,Portlaoise,Co. Laois.
CHIEF EXECUTIVE Mr. S. Coughlan
SOCIETY’S ADDRESS AND Highfield House,REGISTERED OFFICE Shinagh,
Bandon,Co. Cork.
SOLICITORS P. J. O’Driscoll & Sons,Solicitors,South Main Street,Bandon,Co. Cork.
BANKERS AIB Bank,South Main Street,Bandon,Co. Cork.
AUDITORS Ernst & Young,Chartered Accountants,City Quarter,Lapps Quay,Cork.
IRISH CATTLE BREEDING FEDERATION SOCIETY LIMITED
16
COMMITTEE OF MANAGEMENT’S RESPONSIBILITIES STATEMENTfor the year ended 31 December 2016
The committee are responsible for preparing the financial statements in accordance withapplicable law and regulations.
The Industrial and Provident Societies Acts, 1893 to 2014 requires the committee to preparefinancial statements for each financial year. Under that law the committee have elected toprepare the financial statements in accordance with accounting standards issued by theFinancial Reporting Council and promulgated by the Institute of Chartered Accountants inIreland, including FRS 102 The Financial Reporting Standard applicable in the UK and Republicof Ireland (Generally Accepted Accounting Practice in Ireland).In preparing these financial statements, the committee are required to:
· Select suitable accounting policies and then apply them consistently;· Make judgements and estimates that are reasonable and prudent;· State whether the financial statements have been prepared in accordance with applicable
accounting standards, identify those standards, and note the effect and reasons for anymaterial departure from those standards; and
· Prepare the financial statements on the going concern basis unless it is inappropriate topresume that the society will continue in business.
The committee is responsible for keeping proper accounting records that disclose withreasonable accuracy at any time the financial position of the Society and which enables it toensure that the financial statements are prepared in accordance with Irish Generally AcceptedAccounting Practice and with the Industrial and Provident Societies Acts, 1893 to 2014. It isalso responsible for safeguarding the assets of the Society and hence for taking reasonablesteps for the prevention and detection of fraud and other irregularities
On behalf of the Committee of Management
MICHAEL DORAN PATRICK KELLYChairman Vice Chairman
7 April 2017
17
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF IRISH CATTLE BREEDINGFEDERATION SOCIETY LIMITED
We have audited the financial statements of Irish Cattle Breeding Federation Society Limited for the yearended 31 December 2016 which comprise the Income and Expenditure Account, the Statement ofComprehensive Income, the Statement of Changes in Equity, the Statement of Financial Position, theStatement of Cash Flows and the related notes 1 to 19. The financial reporting framework that has beenapplied in their preparation is Irish law and accounting standards issued by the Financial ReportingCouncil and promulgated by the Institute of Chartered Accountants in Ireland, including FRS 102 TheFinancial Reporting Standard applicable in the UK and Republic of Ireland (Generally AcceptedAccounting Practice in Ireland).
This report is made solely to the society's members, as a body, in accordance with section 13 of theIndustrial and Provident Societies Act, 1893 to 2014. Our audit work has been undertaken so that wemight state to the society's members those matters we are required to state to them in an auditor’s reportand for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibilityto anyone other than the society and the society's members as a body, for our audit work, for this report,or for the opinions we have formed.
Respective responsibilities of committee of management and auditorsAs explained more fully in the Committee of Management’s Responsibilities Statement set out on page3, the committee are responsible for the preparation of the financial statements giving a true and fairview. Our responsibility is to audit and express an opinion on the financial statements in accordance withIrish law and International Standards on Auditing (UK and Ireland). Those standards require us to complywith the Auditing Practices Board’s Ethical Standards for Auditors.
Scope of the audit of the financial statementsAn audit involves obtaining evidence about the amounts and disclosures in the financial statementssufficient 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 areappropriate to the society’s circumstances and have been consistently applied and adequately disclosed;the reasonableness of significant accounting estimates made by the committee of management; and theoverall presentation of the financial statements. In addition, we read all the financial and non-financialinformation in the Annual Report to identify material inconsistencies with the audited financial statementsand to identify any information that is apparently materially incorrect based on, or materially inconsistentwith, the knowledge acquired by us in the course of performing the audit. If we become aware of anyapparent material misstatements or inconsistencies we consider the implications for our report.
18
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF IRISH CATTLE BREEDINGFEDERATION SOCIETY LIMITED (Continued)
Opinion on financial statementsIn our opinion the financial statements
· give a true and fair view of the state of the society’s affairs as at 31 December 2016 and of itssurplus for the year then ended; and
· have been properly prepared in accordance with FRS 102 The Financial Reporting Standardapplicable in the UK and Republic of Ireland;
As required by Section 13(2) of the Industrial and Provident Societies Act 1893 to 2014, we examinedthe balance sheets showing the receipts and expenditure, funds and effects of the society, and verifiedthe same with the books, deeds, documents, accounts and vouchers relating thereto, and found them tobe correct, duly vouched, and in accordance with law.
Ernst & YoungChartered Accountants and Registered Auditors
Cork
2 May 2017
IRISH CATTLE BREEDING FEDERATION SOCIETY LIMITED
19
INCOME AND EXPENDITURE ACCOUNTfor the year ended 31 December 2016
2016 2015Note € €
Income – continuing operations 17,401,430 7,685,480
Operating expenses (17,342,298) (7,527,235)_________ _________
Operating surplus – continuing operations 59,132 158,245
Interest payable and similar charges 3 (26,381) (24,351)Bank interest received 1,269 13,158
_________ _________
Surplus on ordinary activities before taxation 34,020 147,052
Tax on surplus on ordinary activities 4 − −_________ _________
Surplus on ordinary activities after taxation 34,020 147,052=========== ==========
Approved by the Committee of Management on 7 April 2017
MICHAEL DORAN PATRICK KELLYChairman Vice Chairman
IRISH CATTLE BREEDING FEDERATION SOCIETY LIMITED
20
STATEMENT OF COMPREHENSIVE INCOMEfor the year ended 31 December 2016
2016 2015Note € €
Income and Expenditure Surplus for the financial year 34,020 147,052
_________ _________
Total comprehensive income for the year 34,020 147,052=========== ==========
IRISH CATTLE BREEDING FEDERATION SOCIETY LIMITED
21
STATEMENT OF CHANGES IN EQUITYfor the year ended 31 December 2016
Income andShare expenditurecapital account Total
€ € €
At 1 January 2015 2,027,022 972,486 2,999,508Surplus for year − 147,052 147,052
_________ _________ _________
At 31 December 2015 2,027,022 1,119,538 3,146,560Shares issued during the year 508 − 508Surplus for year − 34,020 34,020
_________ _________ _________At 31 December 2016 2,027,530 1,153,558 3,181,088
=========== =========== ===========
IRISH CATTLE BREEDING FEDERATION SOCIETY LIMITED
22
STATEMENT OF FINANCIAL POSITIONat 31 December 2016
2016 2015Note € €
FIXED ASSETSProject development expenditure 5 4,470,531 5,061,443Tangible fixed assets 6 803,823 998,367
_________ _________
5,274,354 6,059,810_________ _________
CURRENT ASSETSStocks 7 348,270 1,296,509Debtors 8 1,528,260 1,609,502Cash at bank 1,754,878 1,606,262
_________ _________
3,631,408 4,512,273CREDITORS (amounts falling due within one year) 9 (2,376,490) (3,767,400)
_________ _________
NET CURRENT ASSETS 1,254,918 744,873_________ _________
TOTAL ASSETS LESSCURRENT LIABILITIES 6,529,272 6,804,683
CREDITORS (amounts falling due after more than one year) 10 (434,936) (642,113)
GOVERNMENT GRANTS 12 (2,913,247) (3,016,010)_________ _________
TOTAL ASSETS LESS LIABILITIES 3,181,089 3,146,560=========== ===========
FINANCED BY
SHAREHOLDERS’ FUNDSShare capital 14 2,027,530 2,027,022Income and expenditure account 1,153,559 1,119,538
_________ _________
Shareholders’ funds 3,181,089 3,146,560=========== ===========
Approved by the Committee of Management on 7 April 2017
MICHAEL DORAN PATRICK KELLYChairman Vice Chairman
IRISH CATTLE BREEDING FEDERATION SOCIETY LIMITED
23
STATEMENT OF CASH FLOWSfor the year ended 31 December 2016
2016 2015Note € €
NET CASH INFLOW FROM OPERATING ACTIVITIES 15 964,507 1,077,678
_________ _________
INVESTING ACTIVTIESProject development expenditure (1,490,069) (1,885,599)Payments for tangible fixed assets (46,111) (1,058,331)Project development grants received 920,000 1,010,000
_________ _________Net cash flow from investing activities (616,180) (1,933,930)
_________ _________
FINANCING ACTIVTIESReceipts from issue of ordinary share capital 508 −(Decrease)/increase in finance leases (200,219) 842,332
_________ _________
Net cash flow from financing activities (199,711) 842,332_________ _________
Increase/(decrease) in cash 148,616 (13,920)Cash and cash equivalents at 1 January 1,606,262 1,620,182
_________ _________
Cash and cash equivalents at 31 December 15 1,754,878 1,606,262=========== ===========
IRISH CATTLE BREEDING FEDERATION SOCIETY LIMITED
24
NOTES TO THE FINANCIAL STATEMENTS31 December 2016
1. ACCOUNTING POLICIES
1.1 Statement of complianceIrish Cattle Breeding Federation Society Limited is a society registered in Ireland underthe Industrial and Provident Societies Act 1893 to 2014. The Registered Office isShinagh, Bandon, Co. Cork.
The society’s financial statements have been prepared in accordance with applicableaccounting standards issued by the Financial Reporting Council and promulgated bythe Institute of Chartered Accountants in Ireland, including FRS 102 The FinancialReporting Standard applicable in the UK and Republic of Ireland (Generally AcceptedAccounting Practice in Ireland).
1.2 Judgements and key sources of estimation uncertaintyThe preparation of the financial statements requires management to make judgements,estimates and assumptions that affect the amounts reported for assets and liabilitiesas at the statement of financial position date and the amounts reported for revenuesand expenses during the year. However, the nature of estimation means that actualoutcomes could differ from those estimates. The following are the society’s key sourcesof estimation uncertainty:
(a) Project development expenditureDevelopment expenditure is capitalised in accordance with the accounting policy givenbelow. Initial capitalisation of costs is based on management’s judgement that technicaland economic feasibility is confirmed, usually when a product development project hasreached a defined milestone according to an established project management model.In determining the amounts to be capitalised management makes assumptionsregarding the expected future cash generation of the assets, discount rates to beapplied and the expected period of benefits.
(b) Impairment of non-financial assetsWhere there are indicators of impairment of individual assets, the society performsimpairment tests based on fair value less costs to sell or a value in use calculation.
IRISH CATTLE BREEDING FEDERATION SOCIETY LIMITED
25
NOTES TO THE FINANCIAL STATEMENTS31 December 2016 (Continued)
1. ACCOUNTING POLICIES (Continued)
1.3 Significant accounting policies
(a) Accounting conventionThe financial statements are prepared under the historical cost convention. Thefinancial statements are expressed in Euro (€).
(b) Fixed assets and depreciationFixed assets are stated at cost.
Depreciation is calculated on a straight line basis by reference to the expected usefullives as follows:
Office equipment 5 yearsTully machinery 5 yearsWeighing equipment 5 yearsBDGP technology 5 years
(c) Project development expenditureProject development expenditure on clearly defined projects whose commercialoutcome can be assessed with reasonable certainty is capitalised. When thedevelopment of these commercial projects reaches completion the society providesservices to its members in return for fee income. This expenditure is amortised overthe useful lives of the projects. Costs relating to fully amortised projects and the relatedfully amortised government grants are written off after a period of nine years from whenthe expenditure was incurred.
(d) Government grants
Grants for operating expenditure:Grants received from the Department of Agriculture, Food and the Marine to fund theoperations of the society are credited to the income and expenditure account so as tomatch them with the expenditure to which they relate.
Grants for project development expenditure:Grants received towards the cost of project development expenditure are deferred andamortised over the same period in which the related project development expenditureis amortised.
(e) Income recognitionIncome is recognised on delivery of the service. Where monies are received in advanceof the related goods or services being provided, the revenue is deferred until such timeas the related performance criteria have been met to recognise the sale.
(f) Operating leasesOperating lease costs are charged to the profit and loss account as incurred, normallyon a straight line basis over the lease term.
IRISH CATTLE BREEDING FEDERATION SOCIETY LIMITED
26
NOTES TO THE FINANCIAL STATEMENTS31 December 2016 (Continued)
1. ACCOUNTING POLICIES (Continued)
1.3 Significant accounting policies
(g) PensionsThe Society operates a defined contribution pension scheme for certain of itsemployees and its annual contributions are charged to the incomes statement in theyear to which they relate.
(h) Leasing commitmentsAt the commencement of the lease term, a lessee shall recognise its rights of use andobligations under finance leases as assets and liabilities in its statement of financialposition at amounts equal to the fair value of the leased asset or, if lower, the presentvalue of the minimum lease payments, determined at the inception of the lease.
(i) StocksStocks have been consistently valued at the lower of cost and net realisable value.Cost is based on actual invoice cost. Net realisable value comprises selling prices lessappropriate selling and distribution costs.
(j) DebtorsKnown bad debts are written off and specific provision is made for any amounts therecovery of which is considered doubtful.
(k) Cash and cash equivalentsCash and cash equivalents in the statement of financial position comprise cash atbanks and in hand and short term deposits with an original maturity date of threemonths or less. For the purpose of the statement of cash flows, cash and cashequivalents consist of cash and cash equivalents as defined above, net of outstandingbank overdrafts.
(l) Short-term debtors and creditorsDebtors and creditors with no stated interest rate and receivable or payable within oneyear are recorded at transaction price. Any losses arising from impairment arerecognised in the income statement in other operating expenses.
IRISH CATTLE BREEDING FEDERATION SOCIETY LIMITED
27
NOTES TO THE FINANCIAL STATEMENTS31 December 2016 (Continued)
2. STAFF COSTS 2016 2015€ €
The staff costs, including costs capitalised in project development, are comprised of:
Wages and salaries 2,774,967 2,443,750Social welfare costs 296,343 261,459Pension costs 170,839 101,725
_________ _________
3,242,149 2,806,934========== ===========
The average number of persons employed by the society in the financial year was 63(2015: 53) and is analysed into the following categories:
2016 2015No. No.
Management 9 9Administration 6 5Technical 18 16Fixed term subcontractors 30 23
_________ _________
63 53=========== ===========
3. INTEREST PAYABLE AND SIMILAR CHARGES 2016 2015€ €
Finance lease interest 26,381 24,351========== ===========
4. TAXATION
Income is exempt from tax as the Society qualifies for charitable status under theprovisions of sections 207, 208 and 609 of the Tax Consolidation Act, 1997.
Effective from 1 January 2017, the Society has registered for Corporation tax.
IRISH CATTLE BREEDING FEDERATION SOCIETY LIMITED
28
NOTES TO THE FINANCIAL STATEMENTS31 December 2016 (Continued)
5. PROJECT DEVELOPMENT EXPENDITURE €
CostAt 1 January 2016 13,887,828Additions 1,698,985Elimination of fully amortised costs (b) (1,184,820)
_________
At 31 December 2016 14,401,993_________
AmortisationAt 1 January 2016 8,826,385Charge for the year 2,289,897Elimination of fully amortised costs (b) (1,184,820)
_________
At 31 December 2016 9,931,462_________
Net book valueAt 31 December 2016 4,470,531
===========At 31 December 2015 5,061,443
===========
(a) Project development expenditure consists of computer hardware, softwareconsultancy, database and other project costs.
(b) Fully amortised projects are written off after a period of nine years from when theexpenditure was incurred. As the project expenditure is fully amortised the writeoff has no impact on profits or on the carrying value of projects in the balancesheet.
IRISH CATTLE BREEDING FEDERATION SOCIETY LIMITED
29
NOTES TO THE FINANCIAL STATEMENTS31 December 2016 (Continued)
6. TANGIBLE FIXED ASSETSOffice BDGP Tully Weighing
equipment technology machinery equipment Total€ € € € €
CostAt 1 January 2016 228,084 1,044,581 68,936 78,748 1,420,349Additions 37,927 − 8,184 − 46,111
--------------------- ----------------------- --------------------- --------------------- ----------------------
At 31 December 2016 266,011 1,044,581 77,120 78,748 1,466,460--------------------- ---------------------- --------------------- --------------------- ----------------------
DepreciationAt 1 January 2016 214,049 104,458 40,475 63,000 421,982Charge for the year 4,268 208,916 11,723 15,748 240,655
--------------------- ----------------------- --------------------- --------------------- ----------------------
At 31 December 2016 218,317 313,374 52,198 78,748 662,637--------------------- ----------------------- --------------------- --------------------- ----------------------
Net book valueAt 31 December 2016 47,694 731,207 24,922 − 803,823
========== ========= ========= ========= ==========At 31 December 2015 14,035 940,123 28,461 15,748 998,367
========== ========== ========= ========= ==========
7. STOCKS 2016 2015€ €
Livestock 199,196 296,068Tully consumables 30,520 25,518Other consumables 118,554 974,923
_________ _________
348,270 1,296,509=========== ===========
Other consumables are comprised of testing kits (including tags) which are consumedin the provision of the Beef Data and Genomics Programme (BDGP).
The replacement cost of stocks is not considered to be materially different from thebalance sheet value.
IRISH CATTLE BREEDING FEDERATION SOCIETY LIMITED
30
NOTES TO THE FINANCIAL STATEMENTS31 December 2016 (Continued)
8. DEBTORS 2016 2015€ €
Trade debtors and prepayments 1,349,061 1,479,751Amounts due from related party (note 17) 179,199 129,751
_________ _________
1,528,260 1,609,502=========== ===========
9. CREDITORS (amounts falling due within one year)
2016€
2015€
Trade creditors 309,154 1,576,221Obligations under finance leases (note 11) 207,177 200,219Accruals and deferred income 1,740,931 1,893,648PAYE/PRSI 97,931 97,234VAT 21,297 78
_________ _________
2,376,490 3,767,400========== ==========
10. CREDITORS (amounts falling after morethan one year)
2016€
2015€
Obligations under finance leases (note 11) 434,936 642,113========== ==========
11. OBLIGATIONS UNDER FINANCE LEASES2016 2015
€ €
Due within one year 207,177 200,219Due between one and two years 214,134 207,177Due between two and five years 220,802 434,936
_________ _________
642,113 842,332========== ==========
IRISH CATTLE BREEDING FEDERATION SOCIETY LIMITED
31
NOTES TO THE FINANCIAL STATEMENTS31 December 2016 (Continued)
12. GOVERNMENT GRANTS
Government grants comprise grants received from the Department of Agriculture,Food and the Marine (DAFM).
€ReceivedAt 1 January 2016 8,475,889Received during year 920,000Elimination of fully amortised grants (a) (811,945)
_________
At 31 December 2016 8,583,944_________
AmortisationAt 1 January 2016 5,459,879Credited to the income and expenditure account in year 1,022,763Elimination of fully amortised grants (a) (811,945)
_________
At 31 December 2016 5,670,697_________
Net amountAt 31 December 2016 2,913,247
===========At 31 December 2015 3,016,010
===========
(a) Consistent with the policy for related project expenditure, as outlined in Note 5,fully amortised grants are written off after a period of nine years from when thegrant was received. As the grants are fully amortised the write off has no impacton profits or on the balance sheet.
IRISH CATTLE BREEDING FEDERATION SOCIETY LIMITED
32
NOTES TO THE FINANCIAL STATEMENTS31 December 2016 (Continued)
13. FINANCIAL INSTRUMENTS 2016 2015€ €
Financial assets that are debt instrument measured at amortised cost: - Other debtors 910,857 1,025,695
Financial liabilities measured at amortised cost: - Finance leases 642,113 842,332 - Creditors 309,154 1,576,221
=========== ===========
14. SHARE CAPITAL 2016 2015€ €
Authorised:28,768 “A” ordinary shares of €12.697381 each 365,278 365,27828,768 “B” ordinary shares of €12.697381 each 365,278 365,27828,768 “C” ordinary shares of €12.697381 each 365,278 365,27873,696 “D” ordinary shares of €12.697381 each 935,746 935,746
_________ _________
2,031,580 2,031,580=========== ===========
Issued and fully paid:28,768 “A” ordinary shares of €12.697381 each 365,278 365,27828,768 “B” ordinary shares of €12.697381 each 365,278 365,27828,449 “C” ordinary shares of €12.697381 each 361,228 360,72073,696 “D” ordinary shares of €12.697381 each 935,746 935,746
_________ _________
2,027,530 2,027,022=========== ===========
All shares rank pari passu in all respects.
IRISH CATTLE BREEDING FEDERATION SOCIETY LIMITED
33
NOTES TO THE FINANCIAL STATEMENTS31 December 2016 (Continued)
15. NOTES TO THE STATEMENT OF CASH FLOWS
(a) Reconciliation of surplus to net cash inflowfrom operating activities 2016 2015
€ €
Surplus for the year 34,020 147,052Amortisation of project developmentexpenditure 2,289,897 1,642,274Project development grants amortised (1,022,763) (966,833)Depreciation of tangible fixed assets 31,739 35,838Movements in working capital:Decrease in debtors 81,244 129,420Decrease/(increase) in stocks 948,239 (1,084,872)(Decrease)/increase in creditors (1,397,869) 1,174,799
_________ _________
Net cash inflow from operating activities 964,507 1,077,678=========== ===========
(b) Cash and cash equivalents 2016 2015€ €
Cash at bank and in hand 1,754,878 1,606,262========== ==========
16. PENSIONS AND OTHER POST-RETIREMENT BENEFITS
The society operates a defined contribution pension scheme. The cost charged to theincome and expenditure account in the year for the scheme was €170,839 (2015:€101,725).
17. RELATED PARTY TRANSACTIONS
The operations of Sheep Database Limited are administered by Irish Cattle BreedingFederation Society Limited. Costs incurred by the society, on behalf of the company,totalling €150,000 (2015: €95,000) were recharged during the year. The amount dueby the company to the society at the year end is included in debtors.
IRISH CATTLE BREEDING FEDERATION SOCIETY LIMITED
34
NOTES TO THE FINANCIAL STATEMENTS31 December 2016 (Continued)
17. RELATED PARTY TRANSACTIONS (Continued)
Key management personnelAll committee of management and certain senior employees who have authority andresponsibility for planning, directing and controlling the activities of the society areconsidered to be key management personnel. Remuneration paid includes pensioncontributions to provide retirement benefits.Total remuneration in respect of these individuals in 2016 (one member of thecommittee of management and nine senior employees) is made up of the followingcomponents:- Basic salary cost of €814,998 (2015: €809,830) paid to individuals and which is
set at market rates for equivalent roles- Employer social insurance costs (ancillary to salary costs) which amounted to
€87,612 (2015: €87,056)- Pension benefits paid by the employer to provide retirement benefits amounted to
€73,780 (2015: €41,622) for the year.
18. OPERATING LEASE COMMITMENTS
At the balance sheet date the society had annual commitments of €77,460 (2015:€46,476) under operating leases for land and buildings which expire within three years.
19. APPROVAL OF FINANCIAL STATEMENTS
The financial statements were approved and authorised for issue by the committee ofmanagement on 7 April 2017.