CHARtrY NUMBER: 1000249 FRIENDS OF THE ANIMALS REPORT AND FINANaALSTATEMENTS FOR THE YEAR ENDED 30 SErnBER2024
FRIENDS OF THE ANIMALS CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2024 Page Legal and administrative information Trustees, report 2-11 Independent auditovs report 12-15 Statement of financial activity 16 Balance sheet 17 Cashflow statement 18 Notes to the accounts 19-28
FRIENDS OF THE ANIMALS CHARITY INFORMATION FOR THE YEAR ENDED 30 SEPTEMBER 2024 CHARIIY NUMBER: 10(XJ249 TRusfEESAND TRuE COMMrrrEE: C Prymak IResign&l 1311212024) M Hoy (Resigned 2011112024) A Drury {Re5igned 2011112024) M J Gomez Carole May Urquhart {Appointed 20111n0241 Emma Louise Muffett IApKK)inted 2011112024) TREASURER: M J Gomez ADDRESS: 17A Rivenvay Newwrt Isle of Wight P030 SUX BANKERS: Allian & Leicester (Santanderl BBAM Bridle Road Bootle Merseyside GIROAA HSBC Union Street Ryde P033 2U Lloyd5 Bank 25 Gresham Street London EC2V 7HN Shawbrook Warfey Hill Business Park The Drive Brentwood CM13 3BE Nationwide Building Society Nationwide House Pipersway Swindon SN381NW STATUTORY AUDITOR: MO0 (&)uthJ LLP 9 St. Johns PLI Newport P030 ILH P4el
FRIENDS OFTHE ANIMALS TRUSTEES REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2024 The trustees present their report with the financial staternents of the charity for the year ended 30 September 2024. The trustees have adopted the provisions of Accounting and Reporting by Charities.. Ststement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Stsndard applicable in the UK and Republic of Ireland {FRS 102} leffettive l January 20191. Reference and Administration Details The legal and administrative infomiation set out on page I forms part of this report. Strurture, Govemance and Management Friends of the Animals is an unincorporated registered charity (number 10002491 and is governed by its constitution, dated 1st September 1990. The Charity is run by a volunteer Trustee committee of four members. elected annually at the Charitrfs Annual General Meeting. They meet as and when necessary and cornmunicate with each other regularly often by electronic means. The Trustees who served at any point during the year and up to the date of signature of this report were.. A Drury (appointed 301912023. left commtttee Nov 24) M Gomez MHOY C Prymak Carole Urquhart Emma Muffett (appointed 301912023. left committee Nov 24) (appointed 3019/2023. left commtttee Dec 241 {appointed Nov 24) (appointed Nov 24) The Trustees are also custodian trustees of the charitrfs properties. At the AGM in November 24 Anne Drury and Martin Hoy did not sLind for re-election but remain active supporters of the Charity. Caroline Prymack left the board shortly after the AGM. She too has remained a great help to the Charity. Carole Urqhuart and Emma Muffettwere elerted tojoin the Committee. New Trustees are given training and a welcome pack It is the Trustee's job to:. al To ensure the objects of the Charity are fulfilled i.e. The object of the charity is to relieve the suffering of animals of any species which are in need of care and attention, and in particular: To aid animals in distress through injury or any other cause and to arran8e veterinary treatment where necessary: To find suitable new homes for animals in our care orthat come to our attention- iii. To assist members of the public by means of information. education or in any way whatsoever that will enable them to directly help animals. bl To ensure the activitie5 of the Charity remain within the list above and that no uncharitable activities outside the specified remit are carried OUL cl To formulate policy and guidelines which are then delegated to the National Co-ordinator (currently Helen Sinclair M.B.E.I for implementation through the team of employees and volunteers. dl To consider, review and mitigate risks that could affect the Charitls ability to remain in existence. e.g, by the proper use of insurance. and the seeking of guidance from professional bodies. e} To decide on the best use of the Chartysfunds and assets. This includes the purchase of major rtems and the remuneration of its, employees. To always take into account Charity Commission 8uidance- particularty with regard to public benefit.
FRIENDS OFTHE ANIMALS TRUSTEES REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2024 Oay to day artivity. 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, Newport and Portsmouth, and our experienced Office Manager. Charltable obJe¢tlves and actlvitles- YHAT WE DIY '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 area5 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 totally / partially funded over 43.200 spay51 neuters. The record for the most cats we've neutered from one house, is an incredible FORTY EIGHT ! and we had an owner whose two large bitches gave birth to a total of TWENTY ONE puppies on the same day ! It was costly. but we eventually got the lot spayed / neutered and re-homed. We thought we'd heard it all. until we received a call from a man who rang to ask if we would like to 'burf the litter of Staffies he'd purpose bred. but had failed to sell I We declined. although we did help with the considerable cost of neutering them all. We remain very willing to help anyone genuinely struggling to finan the full cost of this vitally important surgery. As a result of the take over by Corporate Entities of many independent veterinary practices prices have rocketed and 'Chartty rates. have either disappeared. or are much reduced. This means bt is currently costing us a lot more to treat the same number of anima15. Unsurprisingly. in the last year there ha5 been a massive increase in the number of people coming to us forhelp. Owners are undoubtedly finding it harder and harder to acce55 veterinary treatment for their pets and ivs not unusual for an owner to sob on the phone. when they hear that we will help their animal. We discover. many have considerable debts and all are struggling to afftird even basic veterinary treatment. One memorable example wa5 a Frenchie who had been attacked by another Ik)g. His owner had taken him to a Vet but was sadly only able to afford the consultation. This meant the owner leaving without the very necessary painkillers and anti-biotics, as she didn't have the money for them. Fortunately, we have good contacts at several Veterinary Prattice'5 and the Receptionist rang us. We immediatety stepped in and funded the medications this little dog so desperately needed. With the exception of when the Charity has made a major purchase. for almost 34 years Veterinary treatment has InvariaNy been our biggest outgoing. Trying to reverse years of neglert is very costly and time consuming. There 3re many occasions when we are a sick. injured or neglected animals very last chance of life. One example is 'Georgie' a Westie who came into our care in this truly desperate state. We continue to utilise a network of cost effective and capable Foster Homes, which enables u5 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. wormin& de-fleain& micro-chipping and vaccinating prior to placement. We operate an efficient -wants" list, which often enables us to channel a new arrival, towards a new home. within a short time of their arrival. This is far preferable to having an animal languishing in a foster home for an extended period, during which time they will become settled - and then having to uproot them.
FRIENDS OF THE ANIMALS TRUSTEES REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2024 We are mindful that due to a number of other groups bringing in large numbers of dogs frorn abroad, our foster spaces have decreased in number. None of the groups are Charities and even worse, they are not neutering the animals-weare ! Our Foster carers (mainly but not exclusively) look after dogs and rabbits. until a permanent home can be found. They also serve 3s a lifeline to the elderly and to people in Hospit31 or in short term Care Homes. as we provide fostering service for their pets lusualty 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 anim315 to and from Vets. Our wonderful drivets give freely of their time: all we ask is for service users to be fair and cover the cost of the driverfs mileage. Another way we help the public. is by loaning out equipment such as crates and carrying baskets F.O.C. The latter negates the risk of owner5 transporting animals in cardboard boxes (which used to happen a lot). As a result of the wonderful generosity of the public and lin particularl "Pets at Home" donations of pet food and "pet equipmenf jumped from an {accountablel figure of £47,658 in 2023 to £74.316 in the current year. A magnificent increase of 56%. 'Pet5 at Home. have been fantastic and their very generous 5UPPOrt has seen u5 through manya crisis. We are hu el grateful to them for rnonetary donations. voucher5 to spend in Store and for several pallets of food. We are also grateful to all the shoppers who generously add itemsof petfoodtotheirweeklyshop, then popthem into the Pet Food Collection points we have in various Supermarkets {particularly Te5co and Morrisons} and many local Pet Shops. ,' li Pa8e 4
FRIENDS OFTHE ANIMALS TRUSTEES REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2024 For almost nineteen years. we have supported the 'Farm Animal Rescue Sanctuary, (Reg Charity 12039381 at Wolverton in Warwickshire, by paying all the veterinary treatment and shearing Costs. plus the majority of the feed bills. Numbers fluctuate, but the Sanctuary is currentty home to around 400 rescued animals and without our help. the anlmals. very survNal would be at stake. Achievements and Perfomiance Animal Welfare This year has seen us rescuing far gater numbers of wildlife than ever before. These are mainly badgers. foxes and swans. although bats, hedgehogs and a barn owl have also been rescued. We are also r1vIng more calts for help and from a widergeographical range of locations throughout England and Wales than ever before. This results in a far greater time being required to: contact vets, arrange treatments and sort out payments. Despite these pressures, our lovely team battle on and by sheer effort continue to offer a very high level of service. We would like to thank our stsff, volunteers and trustees for the time and effort they put Tn to making this Charity the success it is. Pale 5
FRIENDS OF THE ANIMALS TRUSTEES REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2024 Flnancial Review Year 2020n021 202V2022 202212023 202312024 Tot31 Income £1.019,833 £1,010.607 £1296.906 £2,354.837 Total Spent £549.913 £671.331 £751334 £1.021,273 Total Charitable £448.747 £514.413 £628847 £881,036 % Charitable Expenditure 81.6% 76.6% 83.6% 86.3% The Charity truly appreciates and values eve donation and gift whether financial, practical or physical. This financial year demonstrates the pruden of the Trustee, policy of using funds to ensure the long-term stability and success of the Charity.Thevolatilityof funding and the need to havea Spread ofincome sources has been aptly shown in this yearf5 account5. Following a pleasant increase in voluntary income from 22 10 23 of 28%, the current year123/24) saw the Charity benefit from a particularly generous bequest l£1.05m to datel which has immediately been put to use to further 5tabili5e the CharS long term income and ensure our continuation in the unfore5eeable years ahead. The Gift has been used to purchase outright a large property in the ntre of Newport with the intention of making It a 'go to" Charity Shop WTth a separate self contained office. On the one hand thi5 will generate a further steady reliable income giving an even more stable footing for the Charity but it will also give the rescue and admin team freedom to work in a more organised and efficient manner. Furthemiore the shop side of the existing premises at Riverway can be further expanded with very little effort and that will further increase trading incorne until such time as the Trustees begin (the long term plan ofj converting this building into the Charivs own vets - in a few years time. Whilst overall trading income was onty up around 4.5%, the overall effectiveness of the shops is far far greater that comparable shops as we (of course) are not paying rent (other than at the smallest shop in Portsmouthl. As a result a much greater proportion of every sale goes directly to the animals we are set up to help. As well as increasing our income. it has been possible to increase our charitable effectiveness to a whopping 86.3% by redLtcing costs and controlling surplus expenditure. Both Fundraising and Support costs have been reduced, the former by 13% and the latter by a third. There may be a Small reduction in that effectiveness figure for 24125 due the physical and prartical need to employ staff wth a greater administrative input. but this is only to be expected in this situation. The Charity has also found that a worthwhile side effect of 8overnment po5icy in the financial year was a noticeable increase on return of our cash investments. Interest payments more than doubled1£21.068 in 23 to £56,490 in 241. This is unlikely to remain at that rate but at tirne of writing the Charity is still receiving around 3.6% on the lion share of tt's cash re5eTves. The Charitrf5 decision to purchase prerni5es has given us great fiexibility in the use of those premise5, whi15t retainingthe a55ets. Furthermore, we are not wastingfvnds on financin8 someone'5 else's property portfolio. To further enhance the spread of fund rai5in& the Charity will be working to make 8reater USÈ of online fttnding, and to that purpose has invested in a CRM programme (Beaconl to improve our connectivity with our supporters and control or customer service and admin. Pate 6
FRIENDS OF THE ANIMALS TRUSTEES REPORT FOR THE YEAR ENDED 30 SEFfEMBER 2024 Last year we suggested that "we fully expect veterinary costs to increase furtherf. That was PLrtting it mildlyll The increase of 77% in that important area of expenditure has ONLY been possible because of the policies and plans we had in place to take account of such a rise. FRIlE,N,D.S Animal 408000 11 The Sandown shop E W Ryde thop FRIlE.ND Volunteers make a significant contribution to the Charitrfs work and the Trustees would like to express their gratttude for the effort put in by many people. This include5 the superb volunteers at the shops in: Sandown. Portsmouth. Ryde and Riverway.
FRIENDS OF THE ANIMALS TRUSTEES REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2024 Portsmouth Shop FRIl,E.N,DS Animals vs) (Now formerl NewF>Ort Office / Now a full time Shop Pdte 8
FRIENDS OF THE ANIMALS TRUSTEES REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2024 The following are just a few of the animals who came into our care 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 lovin8 home. We truly appreciate that people have many choices of Charities to 5UPPOrt, but no one appreciates it more. or tries harder than we do, to get the very best possible from every penny donated. ••
FRIENDS OFTHE ANIMALS TRUSTEES REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2024 Reserves Policy It had been the Charitls aim to hold uncommitted free cash reserves equtvalent to approximately 12 rnonths expenditure. However, to take account of the truly unexpected and following discussions with our accountants we have raised the threshold for reseNes to approximately 24 mOntS of free funds- whilst still maintaining our high level of service provision. The Trustee5 will continue to monitor these figures. but are confident the reseryes policy is sound. Having invested heavily to secure the Sandown. Ryde and now the new premises in Newport, to provide u5 Wlth long-term, secure. unrestricted income. we fully expect 24 125 to be one of some consolidation but with the open minded attitude of flexibility to work for the overall benefit of the Charity. Future activity The Trustees will continue to closely monitor income / expenditu / reserves when preparing plans and setting policy. They will also continue to monitor the CharitVs input into the Sanctuary at W0erton, Wanvickshire. Expanding our help to the public and their animals. whilst securing the Charitys financial future and base is going to be the bedrock of our activity over the next few years. We will continue to help all species of anima15 that come to our attention and will seek expert advi. where appropriate. We will also tske part in as many public events as possible in 202415 to promote our work and generate support. To date, the Charity has done in excess of 43.200 spays and neuters and we will continue to promote thi5 very important aspect of our work. We are also one of very few Charities in the Country. who provide pet food and veterinary treatment lincluding spaying and neutering) F.O.C. for anima15 whose owners are.. homeless, living in Refuges, or who are in Prison. Trusteeg Responslbllltles The trustees are responsible for preparing the Trustees. Annual Report and the financial Statements in accordance with applicable law and United Kingdom Accounting Stsndards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charitre5 in England & Wales require5 the trustee5 to prepare financial ststements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resource5 2nd application of resources of the charty for that period. In preparing these financial statements. the trustees are required to: select suitable accounting policie5 and then apply them consistently. observe the methods and principles in the Charities SORP 2019 IFRS 102)- make judgements and estimates that are reasonable and prudent. state whether applicable accounting standards have been followed; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The trustees a responsible for keeping proper accounting records that 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. the Charities {Accounts and Reports} Regulattons 2008 and the provisions of the constitution. They are also responsible for saftguarding the assets of the charity and hence for takin8 reasonable steps for the prevention and detection of fraud and other Irregularitres. 8elO
FRIENDS OF THE ANIMALS TRUSTEES REPORT FOR THE YEAR ENDEO 30 SEPTEMBER 2024 Dlsclosure of information to the auditors We, the Trustees who hek4 office at the date of approval of these Financial Statements as set out above each confirm, so far as we are aware. that". there is no Televant audit information of which the charivs auditors are unaware. and we have iaken all the steps that we ought to have taken as trustees in order to make ourselves aware of any relevant audit information and to eslablish that the chartvs auditors are aware of that information. Approved by order of the trustees committee, and signed on its behaw by: M Gomez. Trustee 8-Su) Zoz Pyii
INDEPENDErAUDIT0R'S REPORT TO THE TRUSTEES OF FRIENDS OF THE ANIMALS Oplnlon We have audited the financial statements of Friends of the Anirnalslthe'charityl for the yearended 30 September 2024 which comprise Statement of Financial Activities, Balance Sheet. Cash flow antl notes tothefinancial Statements. including a summary of 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" Iunited Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements= give a true and fair view of the state of the CharItS affairs as at 30 September 2024 and of Tts intoming resources and application of resources, for the year then ended- have been properly prepared irn accordance with United Kingdom GenerallyAccepted Accounting Practite,. aftd have been prepared in accordance with the requirements of the Charities Act 2011. Basis for opinlon We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilitie5 under those standards are further described in the Auditorfs re5ponsibilitie5 for the audit of the financial staternents 5ertion of our report. We are independent of the charity in accordance with the ethical requirements that are relevantto our audit of the financial statements in the UK, including the FRCS Ethical Standard, and we have fulfilled our ethical responsibilities in accordance with these requi ment5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a ba5l5 for our audit opinion. Conclusions relating to Boing toncern In auditing the financial statements, we have concluded that the tru5tees' use of the going concern basis of accountin8 in the preparation of the financial statements 15 appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collective, may cast 5i8nificant doubt on the charitVs ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our re5pun5ibilitie5 and the re5ponsibilitie5 of thetru5tees with respect to going concern are described in the relevant settion5 of this report. Other infomiatlon The other information comprises the information included in the annual report, other than the financial statement5 and our auditorfs report thereon. The trustees are responsible for the other information. Our opinion ort the financial statements does not cover the other information and, except to the extwt otherwise explicitly stated in our report. we do not express any form of assurance conclusÈon thereon. In connertion with our audit of the financial statements. our re5pon5ibrlity is to read the other inforniation and, in doing so, consider whether the other infom)atiori is materially incon51Stent with the financial statements or our knowledge obtained in the audit or otherwise appear5 to be rnaterially misstated. If we identify such material incon5iStencies or apparent material mi55tatements. we are required to determine whether there 15 a material misstatement in the financial Statements or a material rnisstatement ofthe other informarion. ff, based on the work we hwrfe performed, we conclude that there Is a material misstatement of this other information. we are required to report that fatt. We have nothing to report in thi5 regard. Pa8e 12
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF FRIENDS OF THE ANIMALS Matters on which we are required to report byexception We have nothing to report in respect of the following matters vthich the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if. in our opinion: the information given in the Trustees. Annual Report is inconsistent in any material respert with the hnar)cial statements: or the charity has not kepl adequate accounting records: or the financial rtatements a not in agreement with the accounting records and returns: or we have not received all the InfmatIOn and exp4anations we required for our audit. Respon51billtles of trustees A5 explained MO fully in the trvsteeg p}nsIbIlitieS Statement set out on page 7. 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 intemal control as the trustees detemiine is necessary to enable the pparatIOn of finèncial Statements that are free from material mi55tatetneni. whether dueto fraud or erTOr. In preparing the financial Statements. the trvst&s are responsible for a55e5sing the char5tV5 ability to continue as a going concern. di5closin& as applicable. matters rdated to going concern and u5ingthe going concern basis of accounting unless the truste either intend to liquidate the charity or to cease operations. or hwe no realistic altemative but to do so. AUdit0S responsibilities for the audit of the fiRan(ial statements We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulation5 made under section 154 of that Act. Our objectives are to obtain reasonable assurance about whether the financial staternents as a whole are free from material misstatement, whether due to fraud or error. and to issue an auditorfs report that includes our opinton. Reasonable assurance 15 a high level of assurance. but is not a guarantee that an audit condLKted in accordance with Is (UK) will always detert a material misstaternent when it e5t5. Misstatements can arise from fraud or error and are considered material if. individually or in the aggregate. they£ould reasonably be expetted to infiuence the etonomic decisions of users taken on the basis of these financial statements. A further descrhption of our re5ponsibiltttes for the audit of the finaniial statements is located on the Financial Reporting Councils website at= www.frc.orE.uk/auditorsresponsibilttie5. Thi5 descriptM)Th forms part of our auditorfs report. IrreÈularities. including fraud, are instances ol non-compliance with laws and regulations. We design procedures in line with our rpOnsIbIlItIes. Outlined above. to detecl material misstatements in respect of irregularities. including fraud. The extent to which our procedures are capable of detecting irregularities. including fraud is detailed below. 48e 13
INDEPENDENf AUDITOR'S REPORT TO THE TRUSTEES OF FRIENDS OF THE ANIMALS Explanation as to what extent the audit was cqmsmlered capable of detecting irregularities, Includlng fraud The objectives of our audtt in respett of fraud. are.- to identify and assess the risks of material misstatement of the financial statements due to fraud,. to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud. through designing and implementing appropriate responses tothose assessed risks: and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However. the primary responsibility forthe prevention and detection of fraud rests with both management and those charged with governance of the charity. Our approach was as follows: The en8agement partner selected staff for the audit who had the requsred competence and skills in the not for profit sector to be able to identify or recognise non-<ompliance with laws and regulations. We assessed the risk of irregularities as part of our audit plannin& and ongoing review, including due to fraud, management override was identified as a significant fraud risk from our assessment. Completeness of income was also judged a significant risL most specifically in relation to the fundraising trading income and legacies. as there 15 a risk income could be recognised in the incorrect period or omitted. )me irhcome received is restritted in its use and a Significant risk was identified regarding the corrert classrfication of income between restrirted and unrestricted funds and that the expenditure against this income Wd5 in line with any specrfied restricbons. We obtained an understanding of the legal and regulatory requIrnets applicable to the charity and considered the most significant to be CharitiesAtt 2011, the Charity SORP. UK financial reporting standard5 a5 Ued bythe Financial Reporting Council and Gift Aid compliance. We obtained an understanding of howthe chartty complies wrth these requirements by discussions with management and those charged with govemance. We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non<ompliance with laws and regulation5. We a55e5sed the control environment, documenting the systems, controls and processes adopted. The audit approach incorporated a combination of controls testin& where appropriat4 analytical review and substantive procedures. In response to the risk of fraud through management override we: performed analytical procedures to identify any unusual or unexpected relationships; tested journal entries to identify any unusual transartions,. reviewed transartions with related parties- and assessed whether judgements and assumptions made in deterrnining the accounting estimates were indicattve of potential bias. specifically in relation to the impairment review of the properties held. In response to the classification of income and expenditure between restritted and unrestricted we.. A8reed a sample of income received from the accounting records to source documentation to ensure any restriction5 to the income were correctly identified; Reviewed the clients analysis of restricied funds for any obvious misallocation5 of income or expenditure,. Agreed a sample of expenditure from the accounting records t05UPPOrting documentation. confirming any restrittion applied met the purpose for which the income was given. To address the risk of fraud through revenue recognition we.. Agreed a sample of income received from source documentation into the accounting records,. Tested and agreed income around the year end to ensure income was recorded in the correct period. Page 14
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF FRIENDS OF THE ANIMALS Discussed with management that there wa5 no further irKome they were aware of that needed to be accounted for: and Reviewed board minutes for evidente of any further unretorded income. 7here are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transartions. the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance wtth laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence. rf any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. Use of our report This report is made solelyto the charity's tru5tee5. as a t>ody. in accordancewith Part 4 of the Charities (Accounts and Reports) Regulations 2(K)8. Our audit work has been undertaken so that we might state to the charl5 trustee5 those matters we are required to State to them in an auditorfs report and for no other pvrwse To ihe fullest extent permitted by law. we do not accept or assume responsibility to any party other than the charity and charity's trustees as a body. for our audit worK for this repE)rt. or for the opiniorb we have forrned. For and on behalf of Moore {Southl LLP. Statutory Auditor Moore (South) LLP is eliBible to act as an auditor in temis of sectian 1212 of the Companie5 Act 2006 9 St John's Place Newport Isle of Wight P030 ILH Page 15
FRIENDS OF THE ANIMALS STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30SEPTEMBER 2024 Unrestricted Restrlrted Funds Funds Notes 2024 2023 INCOME AND ENDOWMEpifs FROM Volufttary Income Raising funds Inve5trnent income 1.694.513 589.687 60,090 10,547 1.705.060 589,687 60.090 713.005 562,833 21,068 TOTAL INCOMING RESOURCES 2,344,290 10,547 2.354.837 1,296,906 RESOURCE5 EXPENDED Raising funds Fundraising costs Fundraising trading.. costs of goods sold and other costs 83,218 83,218 79,400 57.019 57.019 43,487 Charitable activities Animal Welfare 817,980 63,056 881.036 628.447 TOTAL RESOURCES EXPENDED 958.217 63,056 1,021.273 751,334 NET INCOMING I IOUTGOINGI RESQURCE5 BEFORE TRANSFERS 1,386.073 152.51YJI 1,333,564 545.572 GROSS TRANSFERS BlEEN FUNDS 15 152.5091 52.509 NEf MOVEMENT IN FUNDS 1,333.564 1,333,564 545,572 RECONCIUATION OF FUNDS Total funds brought forward 2.737.957 2,737.957 2,192,385 Total funds farried forward 15 4.071.521 4,071,521 2,737.957 The notes on page5 19 to 28 form part of these accounts. PaÉe 16
FRIENDS OF THE ANIMALS BALANCE SHEEr AS AT 30 SEPTEMBER 2024 2024 2023 Notes FIXEO ASSErs Tangible fixed assets Fixed asset investments io 1.710,621 244.970 1.006.640 li 1.955.591 1,006.640 CURRENT ASSETS Debtors Cash at bank and in hand 12 249.048 1.976.550 172.682 1,585,626 2.225.598 1.758.308 CRELMTORS Arnounls falling due within oneyear 1109.668) {26.9911 NET CURRENT ASSETS 2.115.930 1.731.317 NET ASSEtS 14 471.$21 2.737.957 FUNDS Unrestrirted income funds Restrirted income funds 4.071.521 2,737.957 TOTAL CHARfTY FUNDS 15 4.071.521 2.737.957 The notes on pages 19 to 28 form part ofthese accounts. Signed on behalf of the trustee5 M Gomez- Trustee ZOL Page17
FRIENDS OF THE ANIMALS CASHFLOW STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2024 2024 2023 Cashfiows from operating activities Cash generated from operdting aciivities 1.112.128 403,057 Cashflows from investin8 artivrties Purchase of tangible fixed assets Purchase of investment property Interest reiVed 1732.7241 144,9701 56.490 {36,4301 21,068 Net cash used in investing activtties 1721,2041 115,3621 Change In cash and cash equr4aler*ts in the year 390.924 387,695 Cash and cash equivalents at the beginnir¥ of the year 1.585.626 1.197,931 Cash and cash equivalents atthe end of the year 1,976,550 1.585.626 NOTES TO CASHFLOW STATEMENT RECONCIUATION OF INCOMVIEXPENDTfuRE) TO NEf CASH FLOW FROM OPERATING ACTlVtnES 2024 2023 Net income forthe repDrtin8 period (as perthe statement of financial activities) 1.333.564 545,572 Adjustments for. Depreciation charges Loss on disposal of fixed assets Interest received Ilncreasel/decrease in debtors IDecreasellincrease in creditors Investment property donated 28.743 35,632 1.350 121,0681 1140,1051 118.3241 156,4901 176.3661 82,677 1200.0001 1.112,128 403,057 ANALYSIS OF CHANGE IN NET DEBT A5at 30 September 2024 l Ortober Cash flows Cash at bank antl in hand 1,585,626 390,924 1.976,550 P4E 18
FRIENDS OF THE ANIMALS NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 SEPTEMBER 2024 l AccoufrmNG POUCIES (al Accounting convention The finarKial statements of the charity. whith Is a public benefft entity under FRS 102. have been prepared in atdance with the Charities SORP IFRS 102) 'Accounting and ReForting by Charities: Statement of Recommended Prattice applicable to charities prepari their accounts in actordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021 (effective l January 20191.. and the Charities Act 2011. The accoLFnts are prepared In sterllng. whid) is the functional of the charity. Monetary amounts in these financial statements are rounded to the nearest £1. Assets and liabilities are initially recognised at historical c05t ortran5ackion value. Ibl Going Concem The trustees consider that there are no materol uertaIntieS atM)Ut the charitvs ability to continue as a Eoing concern. Accordingly theycontinue to adopt the going concem concept in preparingthese financial 5taternent5. Icl Fund Kcounting General funds are unre5trirted funds. which are available for use at the discretion of the tfustees in furtherance of the genetsl objectives of the charity and which have not been designated for other puipose5. Designated funds are unrestricted funds which the twstees have set aside for specific purpose. The aim use of each designated fund is Set in the notes to the accounts. Restricted funds are funds which are to be used in accordance with specific re5tricknons imw)sed by donor5 or which have been raised by the ¢h3rtty for p3rticular purposes. The costs of raising and adminbstering such funds are charged against the specific furKI. The aim and use of each restricted fund is set out in the notes to the accounts. The charity receive5 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 create5 a legal obligation and as such it is not accounted for as a restricted fvnd. The trustees are of the opinion that charitable expenditure on the Isle of Wight is far in excess of the income generated in thi5 Way. (dl Incoming resource5 Voluntary Income Voluntary income is recognised in the Statement of Financtal Acttvities once the charity has entitlement to the funds, it is probable that the income will be received and the arnount can be measured reliably. Donations. grants and grfts are recognised when receivable. Incolne from Gwft Aid tax redaims is COgnISed for any donations with relevant Gift Aid rtificateS recognised in income for the year. Any arnovnts of Gift Aid not received bytheyear*nd are accounted for in income and accrued income in debtors. Donations of goods for distribution to beneficiarles are rQgnIsed when re(Ved and are induded at an estimate of their market value where this value can be reliabty measured. Donations of goods for resale are re(ognised when sold and their value to the charity has been realised. Pale 19
FRIENDS OF THE ANIMALS NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30SEPTEMBER 2024 I ACCOUNTING pouaES Icontlnuedl Idl Incoming resouries {continuedl For legaoes, entitlement is taken on a case by case basis on receipt or where the charity is aware of an impending distribution and the amount (an be measured reliably. Where legacies have been notified or the charity is aware of the granting of probate, and the criteria for income recognition has not been met, then the legacy is a treated as a contingent asset and disdosed if material. Rabsing 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 delNered. Investment income Interest receivable is recognised over the period it is accrued. (el Resources experKled Liabilitie5 are recognised as resources expended as soon a5 there 15 a legal or constructive obligation committing the charity to the expenditure. pendItUre is accounted for on an accruals basis and has been classified under heading5 that aggregate all costs relèted to a particular category. Where costs relate to support costs that cannot be directly attributed to particular headings they have been allocated to arttvities using estimates deemed appropriate by the trustees on a basis consistent with use of the resources. Fundraising costs are publioty costs and those costs incurred in seeking voluntary contributions and do not include the costs of di55eminating information in support of the charrtable activities. Fundraising trading costs are those costs associated with the operation of the charity'5 shops. Expenditure is recorded net of VAT where it 15 recoverable. Irrecoverable VAT is charged against the same category of expenditure as the cost to whith it relates. lfl Tanglblo red assets and depreciation All a55etS C05ting more than £250 are capitalise(J at their histOTrcal cost when purchased. Depreciation is prowded to write off the cost, less an estimated SidUal value. of all fixed asset5 over their experted useful economic live5 as follow5: Freehold property Leasehold property Motor vehicles Other equipment 2% straight line over the term of the lease 25% reducing balance - 20% reducin8 balance Igl Investment property InVtment properties are carried at fair value. Revaluation surpluses are recognised in the Ststement of Financial Activities. Fair value Is baseil on open market fdluation5 carried out by the trustees and where considered necessary prufessional independent chartered surveyors. Pa8e 20
FRIENDS OF THE ANIMALS NOTES TOTHE ACCOUNTS FOR THE YEAR ENDED 30 SEPTEMBER 2024 {hl Donated goods for resale Oonated goods for resale are not shown as stock because the volume and value of items received means it would be impractical to estimate a fair and reliable value for them on receipt. Income from these items is recognised on le ofthe items. (il Operating leases Rentals payable under operating leases are chard to the statement of financial activities as incurred over the tem ofthe lease. l KÈY accountlng estlmatès andludgements Estimates and judgements are continually evaluated and are based on historical experience and other factors. including expectations of future events that are believed to be reawnable uler the circufflstances. The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will. by definition. seldom equal the related actual results. No judgements (apart from those inwlving estirnate51 have been io the process of applying the aiM)ve accounting policies. The key a55umptions concerning the future and key sources of estimation of uncertainty at the reporting date include.. {a) with the re5Lslt being that no depreciation need be charged to reduce the value of property to residLHI value. Ibl Donated items. being pet food and items of pet care equipment donated for use and distribution to the tharites beneficiaries are induded at an average cost of £l.1012023= £1.10] per item. 2024 2024 Unrestricted Re5trirted 2024 Total 2023 Total 2 VOIUNTARY INCOME Legaaes. donatlOll5. and gifts 1.694.513 10547 1.705.060 713.1M]5 1.694.513 10.547 1.705.060 713.1]05 Within donations and gifts are E74.31612023: £47.657) of donatiorts in kind. which comprise items such as pet faod and various items of pet care equipment and are stated at an average cost of £l.1012023: EI.101 per item. Within legacies is a valuation of E200.000 {2023= Nil) for a propertywfted to the charity- 3 BAISING FUNDS Store collections Other collection5 R8ffle5 and other event5 Fynd raigng trading 2,906 5,977 15,901 564,903 1.886 6.918 13.915 540,114 5.977 564.%3 589.687 589,687 562.833 Page21
FRIENDS OF THE ANIMALS NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 SEPTEMBER 2024 2024 Unrestrirted 2024 Re5trirted 2024 Total 2023 Total 3b RAISING FUNDS- FUNDRAISING TrAD5NG Portsmouth shop Sales at 17A Sandown shop Ryde shop 53,L 66.759 191,282 253,858 53.004 66,759 191,282 253,858 54.724 54,278 184,289 246.823 564.gJ3 564,903 540,114 4 INVEsfMENT INCOME Interest received Rents received 56.490 3.600 56,490 3,600 21,068 60.090 60,090 21,068 5 RAISING FUNDS FUNDRAISING COSTS Advertising and publicity Raff le priie5 Support Costs 22,707 22,707 26,311 169 60.511 60,511 52,920 83.218 83,218 79,400 FUNDK4ISING TRADING: cosrs OF GOODS SOLD AND OTHER cosrs Purchase of stock for resale Support costs 1.973 55.046 1.973 55.046 43,487 57,019 57.019 43,487 6 ANIMAL WELFARE Donated pet food Animal feed purchased Veterinary fees Animal equipment Sundry Support costs 74.316 10.966 379.493 2.261 74,316 33,156 394,986 2,261 3,881 372,436 47,658 38,132 222.914 2,070 3,469 314,204 22.19) 15,493 3,881 21,492 350,944 817,980 63,056 881,036 628,447 Pate 22
FRIENDS OF THE ANIMALS NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 SEPTEMBER 2024 7 COMPARATIVES FOR THE STATEMENT OF FINANCIALAcfMTIES 2023 2023 Unrestrirted RÈ5trirted Fun(Is Funds 2023 Total funds INCOME AND ENDOWMENTS FROM Voluntary Income Raising funds Irbvestment income 652.315 562.833 21.068 60,690 713.W5 562,833 21.068 1.236.216 60.690 1.296.9( RESOURCES EXPENDED Raising fd5 Fundraising costs Fundraising trading: costs of goods sold and othercosts Charitable activities 79.41Kl 43.487 43.487 Animal Welfare 558.228 70.219 628.447 681.115 70.219 751.334 INCOMING I IOUTGOINGI RESOURCES BEFORE TRANSFERS 555.101 19.5291 545.572 GROSS TRANSFERS BEfEN FUNDS 19.529} 9.529 NET MOVEMENT IN FUNOS 545.572 545.572 RECONCILIATION OF FUNDS Total funds brought forward 2.192.385 2,192.385 Total funds carried foN4ard 2.737.957 2.737.957 Page 23
FRIENDS OF THE ANIMALS NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 SEPTEMBER 2024 Costs of generating voluntèry income Costs of Fund Raising Trading Anlmal Welfare 2024 Total 2023 Total SUPPORTCOSTS Unrestricted Motor and travel Rent, rate5 and insurance Heat. light & water Telephone Printin& stationery & postage Wages Employers NIC Pensions Repair5 and miscellaneous Depreciation Loss on di5P05al of fixed assets ank charges Auditors, fees Auditors, fees underprovision AccountarEcy Legal and profe55i0nal 537 1.462 522 537 5% 16,816 46% 6,003 46% 296 6% 2.192 11% 9.662 90% 18.279 50% 6.524 50% 4,335 88% 15,543 78% 211,994 90% 15,039 90% 3,991 90% 15.609 34% 18.395 64% 64% 1.151 64% 9.446 64% 18,072 64% 2.904 64% 10.736 36,557 13.049 4,927 19,927 235,549 16,710 4.434 45.909 28.743 10,483 20,982 15.162 4.998 14,760 199,871 2S,222 3,426 49,224 35.632 1,350 1,479 5,574 4% 4% 296 6% 2.192 11% 23.555 10% 1.671 10% 443 10% 15.150 33% 5.174 18% 18% 323 18% 15,150 33% 5,174 18% 18% 323 18% 1,797 14.760 28.236 4.536 631 2.657 18% 5.082 18% 816 18% 2.657 18% 5,082 18% 816 18% 1.347 1,763 631 100% 60.511 55.046 350.944 466,501 391.273 Re5trirted Wages 21,492 100% 21,492 19,338 21,492 21.492 19.338 Pa8E 24
FRIENDS OF THE ANIMALS NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 SEPTEMBER 2024 2014 Total 2023 Total NET INCOMING RESOURCES The net incomir8 resources are stated after charging- Depreciation Auditors, fees 28.743 28.586 35,632 5.574 Tru5tee5 and employees Wages and salarie5 Social security costs Pension costs 257.041 16.710 4.434 219.209 25.222 3.426 278,185 247.857 Number of employee5 {including part time) li The trustees do not re1ve any rernuneration. No expenses were reimbursed to tru5tee5 during the year12023: None). During the yearthe charity rented its investment pruperty to one of its empk>yees and received £3.600 of rental incomi No employee received employee benefits of more than £60. per annum {2023= None). The trustees wish to clarwfy that rt is their legal oblTrg3tion to state that no employee eamed more than £60.(KJO pef annum. and that in fact no individual employee wa5 paid close to thi5 amount. Long Temi Leasehold Motor Property vehides FrÈÈhold Property Fittings & equipment Total 10 TANGIBLE FIXED ASSErs Cost At l October 2023 Additions Disposals 611.180 720.971 267.202 119.404 6.995 154.598 4.758 1.152.384 732,724 At 30 September2024 1.332.151 267.202 126.399 159,356 1,885,108 Depreciation At i October 2023 Charge tor year On disposals 76,594 10.703 69.150 18.lJ40 145.744 28.743 At 30 September 2024 87.297 87.190 174.487 Net 0k value at 30 September 2024 1.332.151 267.202 39,102 72.166 1.710.621 Net LK)Dk value at l October 2023 611.180 267.202 42,810 85.448 1,006,640 The longtemi leashold property was acquired in 2020 on a 994 year lease. Page 25
FRIENDS OF THE ANIMALS NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 SEPTEMBER 2024 11 INVESfMENT PROPERTY Investment Property Cost At l October 2023 A(Jditions DisP05a15 244,970 At 30 September 2024 244.970 Depreciatlon At l October 2023 Charge for year On disposals At 30 September 2024 Net book value at 30 September 2024 244,970 Net book value at l October 2023 Included within the investment property additions is a £2(KI,C property which was gifted to the charity- 2024 Total 2023 Total 12 DEBfoRS Prepayments Accrued income Other debtors 7,590 226,306 15,152 6,897 138,154 27.631 249.048 172.682 13 CREDITORS: AMOUNTS FALLING DUE wmiiN ONE YEAR Operating creditors Accruals Other credttor5 28,151 65,676 15.841 5,364 14,679 6,948 109,668 26,991 e26
FRIENDS OF THE ANIMALS NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 SEPTEMBER 2024 14 ANALYSIS OF NET ASSETS BETWEEN FUNDS 2024 2024 Unrestricted Restrirted Funds Funds 2024 Total Frxed assets Current assets Current liabilities 1.955.591 2.225.598 {109.6681 1,955.591 2.225,598 1109.668} 4.071.521 4.071.521 2023 2023 Un¥estrlrted Restrirted Funds Funds Z023 Total Fixed assets Curreni assets Current liabilities 1.006.640 1.758.308 126.991) i.IJ06.640 1.758.308 {26,991) 2.737.957 2.737.957 15 MOVEMENT IN FUNDS Asat l OctobÈr Incorning Oirtgoing 2023 resour$ resources Asat 30 September 2024 Translers Unrestrirted intornè funds General fund 2.737.957 2.344.290 {958.2171 152.5091 4.071.521 Total unrestrlcted Income lunds 2.737,957 2.344.290 (958.2171 152.5091 4.071.521 Restrkted income funds Farm Animal Rescue Sanctvary 10547 163.0561 52,509 Total restrirted income funds 10.547 163,0561 52,509 Total Funds 2.737.957 2354.837 (1.021.273) 4,071,521 Page27
FRIENDS OF THE ANIMALS NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 SEPTEMBER 2024 IS MOVEMENT IN FUNDS IntInued1 As•t 30 September 2023 l Ort*)ber 2022 Incoming Outgoing resources resource5 Transfers Unrestrlrted Income furKIs General fund 2,192,385 1,236,216 1681,1151 19.5291 2,737,957 Total unrestriited income funds 2.192,385 1,236.216 1681.1151 19.5291 2,737,957 Restrirted income fund5 Farm Animal Rescue Sanctuary 60.690 170.2191 9.529 Total restricted income funds 60,690 170.2191 9,529 Total Fund5 2.192,385 1.296.9(NS 1751.3341 2.737.957 Farm Animal Rescue Sanctuary The Farm Animal Rescue Sanctuary fund represents funds donated specifKally to 5UPPOrt the artivities of a sanctuary of the same name located in Wolverton. This sanrtuary is an independent organisation. that looks after many farm animals, and Friends of the Animals have agreed to provide them wwth 5UPPOrt in this aim. The transfers shown above refIert that during the year5 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 unrestritted funds. 16 RELATED PARfiTRANSAclloNS Mrs H Sinclair is the charity co-ordinator and is tonsidered to be key management personnel- she is also the spouse of a trustee. During the year remuneration of £49.92312023- £48.4881 before tax and national insurance wa5 paid. The charity also had use of property owned by Mr5 Sinclair. No expenses were daimed by Mr5 Sinclair in the year or in 17 OTHER FINANCIAL COMMrrMEflt5 The charity is committed to nortr<ancellable operating lease payments at the year end totalling £958. Page 28