MINISTRY OF AGRICULTURE AND FISHERIES. NATIONAL STUD AND FARM, TULLY, CO. KILDARE (IRISH FREE STATE). The National Stud was established in January, 1916, as a result of the acceptance of an offer by Colonel Hall Walker, M.P. (now Lord Wavertree) to present to the nation his entire Stud of valuable thoroughbred stallions, mares, etc., together with the live and dead stock, furniture, &c. at his breeding establishment at Tully, County Kildare. A condition of the gift was that the Government should purchase the actual property. The offer was accepted by the Government, the price paid for the owner's and tenant's interests in the estate, which consists of approximately 900 acres, being £47,625, and an annuity (present rate £109 14s.) expiring in 1966. (A portion of the property is subject to an annual rent of £840). Portions of the estate were sold in 1917 and 1918 for £705. The Stud was taken over primarily on military considerations, and is being carried on as an establishment for breeding high class thoroughbreds, the foundation stock of light horses from which the Army obtain their requirements for military purposes. The Stud is under the management of Sir Henry Greer, K.C.V.O. After making the necessary charges for insurance, interest on capital, depreciation, headquarters and other overhead expenses, there is a net profit of £9,421 11s. 6d. on the year's working. During the year £23,999 19s. 6d. was realized on the sale of bloodstock, and £5,795 15s. 4d. on the sale of cattle and pigs. £6,831 13s. 4d. was received in respect of service fees earned by the Stud Stallions. The main items of expenditure were £7,475 17s. 6d. for salaries and wages, £5,041 10s. 10d. for service fees, etc. of outside stallions, and £4,500 2s. 1d. for the purchase of cattle and pigs. The valuations of the Bloodstock shown in the Account are arrived at in the case of purchased animals by taking them at cost and charging depreciation on the basis of the individual estimates of life down to a nominal reserve figure. Animals bred at the Stud are valued at a figure equal to service fee paid plus £300 (the estimated cost of rearing an animal), and are depreciated on the same lines as purchased stock. This system of valuation was adopted on expert advice on 31 December 1917, and was applied to the bloodstock comprised in the Deed of Gift, the original value of which was accordingly written down from £56,008 8s. 9d. to £32,850 12s. 3d. (i.e., by £23,157, 16s. 6d.). A valuation of the Bloodstock on the basis of current market values is made by an independent outside Valuer every five years. The last quinquennial Valuation fell on 1 January 1926, when the independent Valuer's figure was £146,250, the relative book valuation being £36,659 118. The net accumulated Trading Profit to 31 December 1925, amounts to £43,915 15s. 7d. (a) Method of Valuation (1) Bloodstock. Purchased animals are taken on charge at cost, and depreciated on the basis of the individual estimate of life down to a nominal reserve figure. Animals bred at the Stud are valued at a figure equal to service fee paid plus £300 (the estimated cost of raising an animal), and are depreciated on the same lines as purchased stock. (2) The valuations of farm live and dead stock, and the charge for depreciation of implements, are calculated generally in accordance with the report of the Sub-Committee appointed to consider Farm Trading Accounts, (printed as Appendix IV in Cmd. 1184), as amended by a later report of that Committee. (b) Includes expenditure of approximately £450 on the upkeep of the well-known Japanese Rock Garden and other ornamental grounds. This expenditure, while necessary to preserve the amenities and saleable value of the Estate, has no relation to the actual work of the Stud. (c) The charge for Headquarters administrative expenses is an estimated figure. (d) Interest on capital expenditure is calculated at minimum Local Loans rates ruling when the various payments were made, and on current account at average Bank rate ruling during the period of account. (e) Calculated at 2 per cent. per annum on estimated value of buildings. (g) An amount of £728 38. 6d. was realized by the sale of three 1925 foals. The balance (£23,271 168.) was obtained for 2 mares, 1 two-year old, 1 three-year old, and 14 yearlings, which were included in the valuation at 31 December 1924 at a figure of £8,056 68. The (h) The provision made for depreciation of bloodstock during the year is £3,502 88. quinquennial valuation of bloodstock made by an independent valuer as at 1 January 1926, was £146,250. The book valuation at that date was £36,659 118. (j) Certain horses are leased for racing purposes. The Lessee is responsible for all expenses, and the Ministry receives one-third of the winnings. MINISTRY OF AGRICULTURE AND FISHERIES. NATIONAL STUD AND FARM, TULLY, COUNTY KILDARE (IRISH FREE STATE). (a) No interest is included on the value of the bloodstock and other property acquired by deed of gift. Had it been necessary to defray the cost from public funds, the total interest on net advances to 31 December 1925, after allowing for the re-valuation of 31 December 1917, would have been increased by £16,424. F. L. C. Floud, 15 September 1926. Accounting Officer. I have examined the above Account and Balance Sheet in accordance with the provisions of the Exchequer and Audit Departments Act, 1921. I have obtained all the information and explanations that I have required, and I certify, as the result of my audit, that in my opinion this Account and Balance Sheet are properly drawn up so as to exhibit a true and correct view of the transactions and state of affairs of the undertaking. Malcolm G. Ramsay, Comptroller and Auditor General. |