CHARITY NUMBER: 1000249
## FRIENDS OF THE ANIMALS
REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
## FRIENDS OF THE ANIMALS
## CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
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Page
Legal and administrative information 1
Trustees' report 2 - 7
Independent auditor's report 8 - 10
Statement of financial activity 11
Balance sheet 12
Notes to the accounts 13 - 21
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## FRIENDS OF THE ANIMALS
## CHARITY INFORMATION FOR THE YEAR ENDED 30 SEPTEMBER 2021
CHARITY NUMBER: 1000249 TRUSTEES AND TRUSTEE COMMITTEE: I Dunsire M J Gomez Mrs M Eggleton TREASURER: M J Gomez ADDRESS: 17A Riverway Newport Isle of Wight PO30 5UX BANKERS: Alliance & Leicester (Santander) BBAM Bridle Road Bootle Merseyside GIR 0AA HSBC Union Street Rtyde PO33 2LJ Lloyds Bank 25 Gresham Street London EC2V 7HN Shawbrook Warley Hill Business Park The Drive Brentwood CM13 3BE Nationwide Building Society Nationwide House Pipers Way Swindon SN38 1NW STATUTORY AUDITOR: Bright Brown Limited Exchange House St. Cross Lane Newport Isle of Wight PO30 5BZ
Page 1
## FRIENDS OF THE ANIMALS
## TRUSTEES REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2021
The Trustees present their report with the financial statements of the Charity for the year ended 30 September 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
The legal and administrative information set out on page 1 forms part of this report.
Friends of the Animals is a registered charity (number 1000249) and is governed by its constitution, dated 1[st] September 1990.
## Structure
The Charity is run by a volunteer committee. They meet as and when necessary and communicate with each other regularly often by electronic means. It is their job:-
To ensure the aims of the Charity are fulfilled i.e.
a) To aid animals in distress through injury or any other cause and to arrange veterinary treatment where necessary;
b) To find good and suitable new homes for animals in our care or that come to our attention; and
c)To assist members of the public by means of information, education or in any way whatsoever that will enable them to directly help animals.
d) To ensure the activities of the Charity remain within the list above and that no activities which would be considered
uncharitable or outside the specified remit are carried out.
e) To formulate policy and guidelines which are then delegated to the National Co-ordinator (currently Helen Sinclair M.B.E.) for implementation through the team of employees and volunteers.
f) To consider, review and at all times mitigate risks that could affect the Charity’s ability to remain in existence.
g) To decide on the best use of the Charity’s funds and assets.
Day to day activity such as rescue work and the authorisation of veterinary treatment along with administrative functions are carried out from our premises in Newport. Many tasks are delegated to specific employees such as the shop Managers at Sandown, Ryde and Portsmouth, or in the case of Newport our very experienced Office Manageress.
In setting our objectives and planning our activities the trustees have given careful consideration to the Charity Commission’s public benefit guidance.
## Charitable activities
## WHAT WE DO
‘Friends of the Animals’ is a practical and caring Charity specialising in ‘preventative’ work such as spays and neuters. Neutering is the only humane way to reduce the numbers of unwanted animals as well as improving the lives of animals already here. We work hard to ensure the areas we cover are kept stray-free and this in turn has a hugely beneficial effect on the whole community.
Since the Charity began in 1990, we have done well over 41,000 spays / neuters. The Country currently has a veterinary shortage; veterinary prices have rocketed and the ‘Charity’ rates Vets previously gave us, have reduced considerably, or have ceased altogether. As a result, we are providing much higher subsidies, to ensure the cost of unaffordable veterinary treatment, is still attainable to owners – even those on the lowest of incomes. We are very willing to help anyone genuinely struggling, especially to finance the full cost of this vitally important surgery.
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FRIENDS OF THE ANIMALS
## TRUSTEES REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2021
Veterinary treatment is invariably our biggest outgoing and we also help with the cost of veterinary treatment, for sick, injured and neglected animals – often finding we are an animal’s very last chance of life. ‘Georgie’ (below) is a Westie who came into our care in a truly desperate state.
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GETTING FROM THIS TO THIS
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## TOOK MORE THAN T.L.C.
By utilising a network of cost effective and capable Foster Homes, we are able to provide a pet re-homing service. Every potential home is visited and carefully checked by a trained volunteer or employee. The fee we charge to place an animal, nowhere near covers the cost to us of the: spay or neuter, worming, de-flea’ing, micro-chipping and vaccinating prior to placement. We operate an efficient “wants” list and this often enables us to channel a new arrival, towards their ‘forever’ home, within a short period of time. This is far preferable to an animal languishing in a foster home for an extended period, during which time they will see the temporary home as their permanent home – and then having to uproot them.
Our Foster carers (mainly but not exclusively) look after dogs and rabbits, until a permanent home can be found. They also serve as a lifeline to the elderly and to people in Hospital or in short term Care Homes, as we provide a fostering service for their pets (usually for up to a month) and free of charge.
We also assist the elderly and infirm by providing a short-term dog walking service and we actively encourage owners to always ‘pick up’ after their animals. Our voluntary driving service transports owners and their animals to and from Vets. Our wonderful drivers give freely of their time; all we ask is for service users to be fair and cover the cost of the driver’s petrol.
We are pleased to help the public, by loaning out equipment such as crates and carrying baskets F.O.C. The latter negates the risk of owners transporting animals in cardboard boxes (which used to happen a lot).
The Pandemic is still having a major effect on the Charity and we saw an immediate increase in requests for help. This was financial, practical and more than ever, assistance with the basics of feeding family pets. The latter was greatly helped by donations of pallets of food and equipment from “Pets at Home” (see right) and by donations from the public at various supermarket collection points.
For almost eighteen years, we have supported the ‘Farm Animal Rescue Sanctuary’ at Wolverton in Warwickshire, by paying all the veterinary treatment and shearing costs, plus the majority of the feed bills. The Sanctuary is currently home to approx 460 rescued animals and without our help, the animals’ survival would be at stake.
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FRIENDS OF THE ANIMALS
## TRUSTEES REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2021
## Achievements and Performance
## Animal Welfare
The pandemic has unfortunately brought a big reduction in the number of spays and neuters being carried out by Veterinary Practice’s. For the foreseeable future, all of the twenty six surgeries we use are concentrating of ‘emergency’ work and they have unfortunately categorised spaying / neutering as ‘routine’ work. The Charity is very concerned this policy will translate into a surge of unwanted animals, in the coming months / years.
Just under 1,600 veterinary treatments were carried out in 2020 / 2021. This is a big reduction on our usual level of work and is due to the national shortage of Vets, plus the effects of Covid.
In the current difficult circumstances, the Trustees are pleased to have maintained the high level (82.8%) of charitable expenditure. The remaining 17.2% that is deemed to be non-Charitable includes: rent, utilities, wages etc. We will continue to ensure the maximum benefit accrues to the animals at every opportunity.
## Financial Review
|Financial Review||||
|---|---|---|---|
|Year|2018/2019|2019/2020|2020/2021|
|Total Income|£514,737|£954,476|£1,019,833|
|Total Spent|£395,189|£392,537|£549,913|
|Total Charitable|£328,911|£324,727|£448,747|
|Percentage Charitable Expenditure|83.2%|82.7%|81.6%|
The Charity truly appreciates and values every donation and gift whether financial, practical or physical. In financial terms the Charity has good cause to appreciate the value and importance of legacy income. This year, with the cancelling of all fundraising events and the lockdown closure of our shops; our income and our ability to continue to help, would have suffered badly, had we not been very fortunate to receive an increase in legacy income. This made a huge difference to the Charity. It also highlights the volatility of this aspect of our income and as a result, last year the Trustees used some funds to purchase a shop in Sandown. This has proved to be a HUGE success and as a wholly owned property is a genuine asset to the Charity over the long term.
Not having to pay rent has meant that by the end of the (calendar) year 2022 the Trustee’s estimate that the shop will have totally paid for itself and that its’ profitability will soar in comparison to most Charity shops that have high rent and upkeep costs to fund. Such is the success of the Sandown shop, the Trustees have purchased a second, large, very prominent shop in Ryde. The combined income from these two properties will secure and enhance the Charity in the years ahead.
Additionally, an extension built on to the front of the Charity’s Head Office, is bringing in many more members of the public, and is generating both support and additional income in its own right.
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## FRIENDS OF THE ANIMALS
## TRUSTEES REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2021
The Sandown shop (pictured above) opened on the 6th October 2020
The new shop in Ryde (pictured right) opened in November 2021 and, although the purchase cost is included in these figures, income will not show until the next financial year. The Trustees are confident that, like Sandown, the shop will bring in extensive, unrestricted funds to help secure the future of our charity. Two perfect examples of how legacies can make such a difference in achieving and securing our charitable aims.
The Charity continues to look for other and additional methods of fundraising, or expanding on existing forms. We make use of online services like Ebay and we actively encourage all our supporters who are UK Tax payers to sign up to Gift Aid.
Volunteers make a significant contribution to the Charity’s work and the Trustees would like to express their gratitude for the effort put in by many people. This includes the superb volunteers at the shops in Sandown and Portsmouth.
## Reserves Policy
At the year end the charity holds £1,853,109 (2020: £1,383,189) in reserves, and of this, free reserves not invested in fixed assets amounts to £930,896 (2020: £875,531). It has been the Charity’s aim to hold uncommitted free cash reserves equivalent to approximately 12 months expenditure. However, the volatility of legacy income, plus the considerable blight of Covid on all forms of our income, makes strict control of this policy almost impossible. Therefore, having discussed this in detail both between ourselves and with our accountants, we plan to raise the threshold for reserves to approximately 24 months of free funds – whilst still maintaining our high level of service provision. The Trustees will continue to monitor these figures, but are confident the new reserves policy is sound.
We have invested approximately £750k of our capital reserves to secure the Sandown and Ryde shops to provide us with longterm, secure, unrestricted income. Further capital investment will be discussed as and when the opportunities arise. The basis for further expansion will always be the security of the Charity and the long-term benefit to the animals. The ability to secure the long-term future of the Charity, has been made possible solely thanks to the legacies made by kind supporters.
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## FRIENDS OF THE ANIMALS
## TRUSTEES REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2021
## Future activity
The Trustees will continue to closely monitor income / expenditure / reserves when preparing plans and setting policy. They will also continue to monitor the Charity’s input into the Sanctuary at Wolverton, Wark’s.
Expanding our help to the public and their animals, whilst securing the Charity’s financial future and base is going to be the bedrock of our activities over the next few years. We will continue to help all species of animals that come to our attention and will seek expert advice, where appropriate. We will also take part in as many public events as possible in 2021/22 to promote our work and generate support.
To date, the Charity has done well in excess of 40,000 spays and neuters and we will continue to promote this very important aspect of our work. We are also one of very few Charities in the Country, who provide pet food and veterinary treatment (including spaying and neutering) F.O.C. for animals whose owners are: homeless, living in refuges, or who are in prison.
The following are just a few of the animals who came into our care during lockdown, after their owners had sadly been found deceased. Some ended up in a Police kennel with a definite time limit on it. Happily, each one has gone to a loving home.
We truly appreciate that people have many choices of Charities to support, but no one appreciates it more, or tries harder than we do, to get the very best possible from every penny donated.
## Risk management
The trustees have examined the major strategic, business and operational risks that the charity faces, and confirm that systems have been established to mitigate significant risks.
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## FRIENDS OF THE ANIMALS
## TRUSTEES REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2021
## Trustees
All trustees are members of the committee and election of the officers of the committee takes place at the annual general meeting by members of the charity. The following served as trustees during the year:
I Dunsire (Chairman) M J Gomez Mrs M Eggleton
## Trustees’ Responsibilities
The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Charity law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements, and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the trustees are aware:
- there is no relevant audit information of which the charity’s auditors are unaware; and
- the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Approved by order of the trustees committee and signed on its behalf by:
…………………………………………… M J Gomez - Trustee
Date: …………………….
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## INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF FRIENDS OF THE ANIMALS
## Opinion
We have audited the financial statements of Friends of the Animals (‘the charity’) for the year ended 30 September 2021 which comprise of the Statement of Financial Activity, Balance Sheet, and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- give a true and fair view of the state of the charity’s affairs as at 30 September 2021 and of its incoming resources and application of resources for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of The Charities Act 2011.
## Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
## Other information
The other information comprises the information included in the annual report, including the trustees’ report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report.
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## INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF FRIENDS OF THE ANIMALS
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- the information given in the trustees’ report is inconsistent in any material respect with the financial statements; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit.
## Other Matters
No audit was required or carried out for the year to 30 September 2020 and so the corresponding figures are unaudited.
## Responsibilities of trustees
As explained more fully in the trustees’ responsibilities statement set out on page 6, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
## Auditor’s responsibilities for the audit of the financial statements
We have been appointed as auditor under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Irregularities, including fraud are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.
As part of our planning we determined materiality and assessed the risks of material misstatement in the financial statements. Based on our understanding of the company we identified the principal risks as management override of controls, and potential for fraud in respect of revenue recognition especially as this relates to the collection of cash income.
Audit procedures performed by the engagement team included:
- A review of transactions and records to ensure there are no transactions that have no apparent charitable or commercial purpose.
- Increased sample testing of cash income sources and consideration of the systems and controls in place around this income.
- Discussions with trustees, including consideration of any known or suspected instances of fraud or non-compliance with laws or regulations.
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become
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## INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF FRIENDS OF THE ANIMALS
aware of it. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error as fraud may involve deliberate concealment or intentional misrepresentations.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Bright Brown Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
## Use of our report
This report is made solely to the charity’s trustees, as a body, in accordance with [the relevant legislation]. Our audit work has been undertaken so that we might state to the trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Bright Brown Limited, Statutory Auditor Exchange House St. Cross Lane Newport Isle of Wight
Date: 20 July 2022
Page 10
## FRIENDS OF THE ANIMALS
## STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 SEPTEMBER 2021
|Notes
INCOME AND ENDOWMENTS FROM
Voluntary Income
2
Raising funds
3
Investment income
4
TOTAL INCOMING RESOURCES
RESOURCES EXPENDED
Raising funds
Fundraising costs
5
Fundraising trading: costs of goods
sold and other costs
5
Charitable activities
Animal Welfare
6
TOTAL RESOURCES EXPENDED
NET INCOMING / (OUTGOING)
RESOURCES BEFORE TRANSFERS
9
GROSS TRANSFERS BETWEEN FUNDS
14
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS
Total funds brought forward
Total funds carried forward
14|Unrestricted
Funds
£
735,661
270,156
360
1,006,177
60,549
40,617
389,007
490,173
516,004
(46,084)
469,920
1,383,189
1,853,109|Restricted
Funds
£
13,656
-
-
13,656
-
-
59,740
59,740
(46,084)
46,084
-
-
-|2021
£
749,317
270,156
360
1,019,833
60,549
40,617
448,747
549,913
469,920
-
469,920
1,383,189
1,853,109|2020
£
821,826
131,332
1,318|
|---|---|---|---|---|
|||||954,476|
|||||43,712
24,098
324,727|
|||||392,537|
|||||561,939
-|
|||||561,939
821,250|
|||||1,383,189|
The notes on pages 13 to 21 form part of these accounts.
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FRIENDS OF THE ANIMALS
## BALANCE SHEET AS AT 30 SEPTEMBER 2021
|Notes
FIXED ASSETS
Tangible fixed assets
10
CURRENT ASSETS
Debtors
11
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
12
NET CURRENT ASSETS
NET ASSETS
13
FUNDS
Unrestricted income funds
Restricted income funds
TOTAL CHARITY FUNDS
14|2021
£
£
922,213
70,514
904,238
974,752
(43,856)
930,896
1,853,109
1,853,109
-
1,853,109|2020
£
£
507,658
24,645
859,610
884,255
(8,724)
875,531
1,383,189
1,383,189
-
1,383,189|2020
£
£
507,658
24,645
859,610
884,255
(8,724)
875,531
1,383,189
1,383,189
-
1,383,189|
|---|---|---|---|
|||||
||||1,383,189|
||||1,383,189
-|
||||1,383,189|
The notes on pages 13 to 21 form part of these accounts.
Signed on behalf of the trustees
………………………………………...............
M J Gomez - Trustee
Date: ………………………………..............
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FRIENDS OF THE ANIMALS
## NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
## 1 ACCOUNTING POLICIES
## (a) Accounting convention
The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015)', and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.
## (b) Fund accounting
General funds are unrestricted funds, which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Designated funds are unrestricted funds which the trustees have set aside for specific purpose. The aim and use of each designated fund is set out in the notes to the accounts.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the accounts.
The charity receives a very small amount of income from collecting tins on the Isle of Wight, that state all income collected will be used on the Isle of Wight. The trustees do not feel that this creates a legal obligation and as such it is not accounted for as a restricted fund. The trustees are of the opinion that charitable expenditure on the Isle of Wight is far in excess of the income generated in this way.
## (c) Incoming resources
## Voluntary income
Voluntary income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
For donations this is generally upon receipt.
For legacies this is when the charity is notified of an impending distribution or receipt of a legacy, provided the value of the incoming resources can be measured with sufficient reliability.
## Raising funds
Income from collections is recognised upon receipt of the funds and income from events is recognised in the period in which the event is held. Fundraising trading income is recognised, net of VAT and all other sales taxes when the goods are delivered.
## Investment income
Interest receivable is recognised over the period it is accrued
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## FRIENDS OF THE ANIMALS
## NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
## 1 ACCOUNTING POLICIES (continued)
## (d) Resources expended
Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to a particular category. Where costs relate to support costs that cannot be directly attributed to particular headings they have been allocated to activities using estimates deemed appropriate by the trustees on a basis consistent with use of the resources.
Fundraising costs are publicity costs and those costs incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. Fundraising trading costs are those costs associated with the operation of the charity's shops.
## (e) Tangible fixed assets and depreciation
All fixed assets costing more than £250 are included at cost. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost over their estimated useful economic lives as follows:
|Property|- not provided|
|---|---|
|Motor vehicles|- 25% reducing balance|
|Other equipment|- 20% reducing balance|
The trustees are of the opinion that the residual value of the freehold buildings will not be less than cost and therefore the freehold buildings are not depreciated.
## (f) Stock and inventories
Stocks are valued at the lower of cost and net realisable value.
## (g) Operating leases
Rentals payable under operating leases are charged to the statement of financial activities as incurred over the term of the lease.
|
term of the lease.|||||
|---|---|---|---|---|
|2
VOLUNTARY INCOME
Legacies, donations, and gifts|2021
Unrestricted
£
735,661
735,661|2021
Restricted
£
13,656
13,656|2021
Total
£
749,317
749,317|2020
Total
£
821,826|
|||||821,826|
Within donations and gifts are £59,160 (2020: £41,583) of donations in kind, which comprise items such as pet food and various items of pet care equipment and are stated at an average cost of £1.00 (2020: £1.00) per item.
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FRIENDS OF THE ANIMALS
## NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
|Notes
3
RAISING FUNDS
Store collections
Street collections
Other collections
Raffles and other events
Fund raising trading
3b
Coronavirus JRS
Coronavirus grant income
3b RAISING FUNDS - FUND RAISING TRADING
Portsmouth shop
Gunville shop
Sales at 17A
Sandown Shop
4
INVESTMENT INCOME
Interest received
5
RAISING FUNDS
FUNDRAISING COSTS
Advertising and publicity
Support costs
8
FUNDRAISING TRADING: COSTS OF
GOODS SOLD AND OTHER COSTS
Support costs
8|2021
Unrestricted
£
585
1,464
3,869
9,836
175,926
20,009
58,467
270,156
34,228
6,667
7,061
127,970
175,926
360
17,219
43,330
60,549
40,617
40,617|2021
Restricted
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-|2021
Total
£
585
1,464
3,869
9,836
175,926
20,009
58,467
270,156
34,228
6,667
7,061
127,970
175,926
360
17,219
43,330
60,549
40,617
40,617|2020
Total
£
1,261
-
6,067
3,007
68,899
22,098
30,000|
|---|---|---|---|---|
|||||131,332|
|||||25,946
36,219
6,734
-|
|||||68,899|
|||||1,318|
|||||14,380
29,332|
|||||43,712|
|||||24,098|
|||||24,098|
Page 15
FRIENDS OF THE ANIMALS
## NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
|2021
Notes
Unrestricted
£
6
ANIMAL WELFARE
Donated pet food
59,160
Animal feed purchased
3,408
Veterinary fees
129,526
Animal equipment
810
Sundry
-
Support costs
8
196,103
389,007
7
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
INCOME AND ENDOWMENTS FROM
Voluntary Income
Raising funds
Investment income
RESOURCES EXPENDED
Raising funds
Fundraising costs
Fundraising trading: costs of goods
sold and other costs
Charitable activities
Animal Welfare
NET INCOMING / (OUTGOING)
RESOURCES BEFORE TRANSFERS
GROSS TRANSFERS BETWEEN FUNDS
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS
Total funds brought forward
Total funds carried forward|2021
Restricted
£
-
16,815
35,001
1,462
202
6,260
59,740
2020
Unrestricted
Funds
£
806,745
131,332
1,318
939,395
43,712
24,098
287,127
354,937
584,458
(22,519)
561,939
821,250
1,383,189|2021
Total
£
59,160
20,223
164,527
2,272
202
202,363
448,747
2020
Restricted
Funds
£
15,081
-
-
15,081
-
-
37,600
37,600
(22,519)
22,519
-
-
-|2020
Total
£
41,583
12,355
117,031
607
-
153,151|
|---|---|---|---|
||||324,727|
||||2020
Total funds
£
821,826
131,332
1,318|
||||954,476|
||||43,712
24,098
324,727|
||||392,537|
||||561,939
-|
||||561,939
821,250|
||||1,383,189|
Page 16
## FRIENDS OF THE ANIMALS
## NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
|Costs of
generating
voluntary
income
£
8
SUPPORT COSTS
Unrestricted
Motor and travel
498
5%
Rent, rates and insurance
1,351
4%
Heat, light & water
140
4%
Telephone
241
6%
Printing, stationery & postage
1,506
11%
Wages
12,393
10%
Employers NIC
618
10%
Pensions
540
10%
Repairs and miscellaneous
17,073
33%
Depreciation
2,700
18%
Loss on disposal of fixed asset
8
18%
Bank charges
330
18%
Auditors' fees
972
18%
Independent examiners' fees
-
18%
Accountancy
142
18%
Legal and professional
4,818
100%
43,330
Restricted
Wages
-
-
Heat, light & water
-
-
-|Costs of
Fund Raising
Trading
£
498
5%
15,532
46%
1,615
46%
241
6%
1,506
11%
-
-
-
-
-
-
17,073
33%
2,700
18%
8
18%
330
18%
972
18%
-
18%
142
18%
-
-
40,617
-
-
-
-
-|Animal
Welfare
£
8,954
90%
16,882
50%
1,756
50%
3,523
88%
10,680
78%
111,535
90%
5,558
90%
4,859
90%
17,589
34%
9,602
64%
26
64%
1,176
64%
3,456
64%
-
64%
507
64%
-
-
196,103
6,260
100%
-
100%
6,260|2021
Total
£
9,950
33,765
3,511
4,005
13,692
123,928
6,176
5,399
51,735
15,002
42
1,836
5,400
-
791
4,818
280,050
6,260
-
6,260|2020
Total
£
7,028
16,830
7,601
1,709
12,989
104,859
4,310
2,554
26,688
7,174
-
1,012
-
2,670
1,208
4,323|
|---|---|---|---|---|
|||||200,955|
|||||-
5,626|
|||||5,626|
Page 17
## FRIENDS OF THE ANIMALS
## NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
||||||2021|2020|
|---|---|---|---|---|---|---|
||||||Total|Total|
||||||£|£|
|9|NET INCOMING RESOURCES||||||
||The net incoming resources are stated after charging:||||||
||Depreciation||||15,002|7,174|
||Auditors' fees||||5,400|-|
||Independent examiner's fees||||-|2,670|
||Trustees and employees||||||
||Wages and salaries||||123,928|104,859|
||Social security costs||||6,176|4,310|
||Pension costs||||5,399|2,554|
||||||135,503|111,723|
||Number of employees (including part time)||||6|6|
||The trustees do not receive any remuneration.||||||
||No employee received employee benefits of more than £60,000 per annum.||||||
||The trustees wish to clarify that it is their legal obligation||to state that no employee earned|||more than|
||£60,000 per annum, and that in fact no individual employee was|||paid close to this amount.|||
|||Freehold||Motor|Fittings &||
|||Property||vehicles|equipment|Total|
|||£||£|£|£|
|10|TANGIBLE FIXED ASSETS||||||
||Cost||||||
||At 1 October 2020|483,425||57,150|56,849|597,424|
||Additions|389,936||31,277|8,386|429,599|
||Disposals||-|(1,000)|-|(1,000)|
||At 30 September 2021|873,361||87,427|65,235|1,026,023|
||Depreciation||||||
||At 1 October 2020||-|43,757|46,009|89,766|
||Charge for year||-|11,157|3,845|15,002|
||On disposals||-|(958)|-|(958)|
||At 30 September 2021||-|53,956|49,854|103,810|
||Net book value at 30 September 2021|873,361||33,471|15,381|922,213|
||Net book value at 1 October 2020|483,425||13,393|10,840|507,658|
Page 18
## FRIENDS OF THE ANIMALS
## NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
|11
DEBTORS
Prepayments
Other debtors
12
CREDITORS: AMOUNTS FALLING
Accruals
Other creditors
13
ANALYSIS OF NET ASSETS
BETWEEN FUNDS
Fixed assets
Current assets
Current liabilities
14
MOVEMENT IN FUNDS
Unrestricted income funds
General fund
Total unrestricted income funds
Restricted income funds
Farm Animal Rescue Sanctuary
Total restricted income funds
Total Funds|DUE WITHIN ONE YEAR
As at
1 October
Incoming
2020
resources
1,383,189
1,006,177
1,383,189
1,006,177
-
13,656
-
13,656
1,383,189
1,019,833|Unrestricted
Funds
£
922,213
974,752
(43,856)
1,853,109
Outgoing
resources
(490,173)
(490,173)
(59,740)
(59,740)
(549,913)|2021
2020
Total
Total
£
£
46,373
8,438
24,141
16,207
70,514
24,645
20,441
6,374
23,415
2,350
43,856
8,724
Restricted
Funds
Total
£
£
-
922,213
-
974,752
-
(43,856)
-
1,853,109
As at
30 September
Transfers
2021
(46,084)
1,853,109
(46,084)
1,853,109
46,084
-
46,084
-
-
1,853,109|2020
Total
£
8,438
16,207|
|---|---|---|---|---|
|||||24,645|
|||||6,374
2,350|
|||||8,724|
|||||Total
£
922,213
974,752
(43,856)|
|||||1,853,109|
|||||1,853,109|
|||||-|
|||||-|
|||||1,853,109|
Page 19
FRIENDS OF THE ANIMALS
## NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
|As at
1 October
2019
MOVEMENT IN FUNDS (CONTINUED)
Comparatives for movement in funds
Unrestricted income funds
General fund
821,250
Total unrestricted income funds
821,250
Restricted income funds
Farm Animal Rescue Sanctuary
-
Total restricted income funds
-
Total Funds
821,250|Incoming
resources
939,395
939,395
15,081
15,081
954,476|Outgoing
resources
(354,937)
(354,937)
(37,600)
(37,600)
(392,537)|As at
30 September
Transfers
2020
(22,519)
1,383,189
(22,519)
1,383,189
22,519
-
22,519
-
-
1,383,189|As at
30 September
Transfers
2020
(22,519)
1,383,189
(22,519)
1,383,189
22,519
-
22,519
-
-
1,383,189|
|---|---|---|---|---|
|||||1,383,189|
|||||-|
|||||-|
|||||1,383,189|
## 14 MOVEMENT IN FUNDS (CONTINUED)
## Farm Animal Rescue Sanctuary
The Farm Animal Rescue Sanctuary fund represents funds donated specifically to support the activities of a sanctuary of the same name located in Wolverton. This sanctuary is an independent organisation, that looks after many farm animals, and Friends of the Animals have agreed to provide them with support in this aim.
The transfers shown above reflect that during the years shown amounts in excess of the restricted income donations were expended on the charitable activities at the sanctuary and therefore the balance of this funding comes from unrestricted funds.
|2021
Total
£
OPERATING LEASE COMMITMENTS
At the year end the charity had total commitments under operating leases expiring:
Within one year
958
958
CAPITAL COMMITMENTS
Abbotts Flooring
11,042
Stannah Lifts
62,108
73,150
The following purchases of fixed assets are committed to be paid within one year:|2020
Total
£
3,001|
|---|---|
||3,001|
||-
-|
||-|
## 15 OPERATING LEASE COMMITMENTS
## 16 CAPITAL COMMITMENTS
## 17 GOING CONCERN
There are no material uncertainties about the ability of the charity to continue as a going concern.
Page 20
## FRIENDS OF THE ANIMALS
## NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
## 18 RELATED PARTY TRANSACTIONS
Mrs H Sinclair is the charity co-ordinator and is considered to be key management personnel. During the year remuneration of £40,500 (2020: £36,000) before tax and national insurance was paid. The charity also has use of property owned by Mrs Sinclair. No expenses were claimed by Mrs Sinclair for the first twenty four years of use of the property. Expenses of £5,537 were paid in the year in respect of the charity's last four years use of property (i.e. £1,384 per year).
Page 21