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2022-02-28-accounts

Charity number: 1140628

Happy Endings Rescue

Unaudited

Trustees' report and financial statements

For the year ended 28 February 2022

Happy Endings Rescue

Contents

Page
Reference and administrative details of the Charity, its Trustees and advisers 1
Trustees' report 2 - 4
Independent examiner's report 5
Statement of financial activities 6
Balance sheet 7
Notes to the financial statements 8 - 17

Happy Endings Rescue

Reference and administrative details of the Charity, its Trustees and advisers For the year ended 28 February 2022

Trustees Christopher Johns
Terry Kemp
Kim Broderick
Lynne Beavan
Charity registered
number
1140628
Principal office
Hill Side
Well Lane
Ospringe
Faversham
Kent
ME13 0SD
Accountants
Kreston Reeves LLP
Chartered Accountants
Montague Place
Quayside
Chatham Maritime
Chatham
Kent
ME4 4QU

Page 1

Happy Endings Rescue

Trustees' report For the year ended 28 February 2022

The Trustees present their annual report together with the financial statements of the Charity for the year ended 28 February 2022.

Objectives and activities

a. Policies and objectives

The purpose of the Charity is to relieve the suffering and distress of animals in need of care and attention in South East England in any or all of the following ways:

a) to rescue, home or rehabilitate and rehome stray, abandoned and unwanted animals

b) to provide long term foster care for homeless animals

c) to provide veterinary treatment, vaccination, neutering and spaying where necessary.

There have been no changes to the objects in the year.

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

Achievements and performance

a. Review of activities

By March 2021 most Covid restrictions were lifted and the charity had returned to its usual routine and sadly, many of the additional volunteers had returned to their day jobs too. However, that didn’t deter us from continuing planned works and completing improvements on site;

This year was the first time that we started weighing all the equines, this was done at quarterly intervals and it helps to accurately manage medication and feed, in turn reduces unnecessary costs.

In the second half of the year, the UK unfortunately had an outbreak of Bird Flu. Heavy restrictions were applied across the country and this compromised the quality of life style the birds were used to. As this could be an ongoing problem we are currently looking into alternative solutions to housing all the poultry.

The charity suffered two very sad losses this year, the first being the loss of Giant Tortoise Ted, due to ongoing illness and secondly the very sad loss of Birdy, a Percheron horse rescued from the French meat markets, who spent over 15yrs in the charity's care.

b. Fundraising

In February Storm Eunice caused havoc across all the sites and severe damage was done to field shelters, fencing and trees. With huge thanks to our supporters and local media we managed to raise over £3,000 to replace the damaged field shelter.

Fundraising through the FB auction page and via the Market Stall continue to be strong streams of income.

As per previous social media pleas, we managed another successful feed appeal for the donkeys.

Page 2

Happy Endings Rescue

Trustees' report (continued) For the year ended 28 February 2022

Achievements and performance (continued)

c. Rescues & Rehoming

After ‘Olive’ the horse was rescued in 2020, she was finally well enough to be rehomed as a companion due to a heart condition. She luckily found a new home and is now starting her new life.

We rescued nine ponies, which thankfully are all doing well and had received medical treatment where necessary. Later in the year all nine ponies were successfully rehomed.

The biggest rescue of year was Harson (Shetland Pony) in appalling condition, with over grown hooves, pregnant and needing an eye removal. She made a full recovery and was rehomed after weaning her foal.

Around November time, we started to see the impact from COVID and unwanted dogs. We had an increase in dogs coming in for rehoming just after Covid restrictions were lifted. Owners returned to work and no longer had the time to keep them. Many of these dogs had behavioural issues due to the lack of knowledge and handling they received from being a puppy.

Financial review

a. Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

b. Reserves policy

The increasing costs of animal care highlight the need for the charity to hold in reserve a minimum of £50,000 to enable the charity to meet short term financial commitments for six months, whilst alternative funding is sourced. The general unrestricted reserves at 28 February 2022 were £123,083 (2021: £250,142).

Structure, governance and management

a. Constitution

Happy Endings Rescue is a registered charity, number 1140628, and is constituted under a Trust deed.

b. Methods of appointment or election of Trustees

The management of the Charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Trust deed.

Page 3

Happy Endings Rescue

Trustees' report (continued) For the year ended 28 February 2022

Statement of 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 (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial which give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and 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 Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. 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.

Approved by order of the members of the board of Trustees and signed on their behalf by:

Christopher Jones

Trustee Date:

Page 4

Happy Endings Rescue

Independent examiner's report For the year ended 28 February 2022

Independent examiner's report to the Trustees of Happy Endings Rescue ('the Charity')

I report to the charity Trustees on my examination of the accounts of the Charity for the year ended 28 February 2022.

Responsibilities and basis of report

As the Trustees of the Charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the 2011 Act').

I report in respect of my examination of the Charity's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Your attention is drawn to the fact that the Charity has prepared the accounts in accordance with 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) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the Charity as required by section 130 of the 2011 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

This report is made solely to the Charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the Charity's Trustees those matters I am required to state to them in an Independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charity and the Charity's Trustees as a body, for my work or for this report.

Signed:

Dated:

SM Robinson BA FCA FCIE DChA MCMI

Kreston Reeves LLP

Chartered Accountants Chatham Maritime

Page 5

Happy Endings Rescue

Statement of financial activities For the year ended 28 February 2022

Note
Income from:
Donations and legacies
3
Other trading activities
4
Investments
5
Total income
Expenditure on:
Raising funds
6
Charitable activities
Total expenditure
Net (expenditure)/income before net gains/(losses)
on investments
Net gains/(losses) on investments
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward
Unrestricted
funds
2022
£
167,681
22,250
6,036
195,967
573
238,732
239,305
(43,338)
16,289
(27,049)
250,142
(27,049)
223,093
Total
funds
2022
£
167,681
22,250
6,036
195,967
573
238,732
239,305
(43,338)
16,289
(27,049)
250,142
(27,049)
223,093
Total
funds
2021
£
400,436
20,043
103
420,582
3,056
206,231
209,287
211,295
(1,623)
209,672
40,470
209,672
250,142

The Statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 8 to 17 form part of these financial statements.

Page 6

Happy Endings Rescue

Balance sheet As at 28 February 2022

Note
Fixed assets
Tangible assets
11
Investments
12
Current assets
Debtors
13
Cash at bank and in hand
Creditors: amounts falling due within one
year
14
Net current assets
Total net assets
Charity funds
Unrestricted funds
15
Total funds
5,816
117,864
123,680
(3,670)
2022
£
7,500
95,583
103,083
120,010
223,093
223,093
223,093
12,665
160,875
173,540
(2,692)
2021
£
-
79,294
79,294
170,848
250,142
250,142
250,142

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Christopher Jones Trustee Date:

The notes on pages 8 to 17 form part of these financial statements.

Page 7

Happy Endings Rescue

Notes to the financial statements For the year ended 28 February 2022

1. General information

The Charity is an unincorporated charity, registered in England and Wales, with the charity number 1140628. The Charity's registered office is shown on page 1.

The Charity's objects can be found in the Trustees' report on page 3.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements 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 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

Happy Endings Rescue meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The financial statements have been prepared in British Sterling and are rounded to the nearest Pound.

2.2 Going concern

The Trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The Trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the Charity has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the Charity's ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

Page 8

Happy Endings Rescue

Notes to the financial statements For the year ended 28 February 2022

2. Accounting policies (continued)

2.3 Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Charity, can be reliably measured.

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

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

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.5 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.6 Tangible fixed assets and depreciation

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Page 9

Happy Endings Rescue

Notes to the financial statements For the year ended 28 February 2022

2. Accounting policies (continued)

2.6 Tangible fixed assets and depreciation (continued)

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Motor vehicles

25% straight line

2.7 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of financial activities.

2.8 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.9 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.10 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.

2.11 Financial instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.12 Pensions

The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.

Page 10

Happy Endings Rescue

Notes to the financial statements For the year ended 28 February 2022

2. Accounting policies (continued)

2.13 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 comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

3. Income from donations and legacies

Donations
Legacies
Unrestricted
funds
2022
£
107,855
59,826
167,681
Total
funds
2022
£
107,855
59,826
167,681
Total
funds
2021
£
400,436
-
400,436

4. Income from other trading activities

Income from fundraising events

Unrestricted Total Total
funds funds funds
2022 2022 2021
£ £ £
Fundraising and events 22,250 22,250 20,043

5. Investment income

Investment income
Bank interest
Unrestricted
funds
2022
£
5,534
502
6,036
Total
funds
2022
£
5,534
502
6,036
Total
funds
2021
£
-
103
103

Page 11

Happy Endings Rescue

Notes to the financial statements For the year ended 28 February 2022

6. Expenditure on raising funds

Costs of raising voluntary income

Unrestricted Total Total
funds funds funds
2022 2022 2021
£ £ £
Advertising and promotion 573 573 3,056

7. Analysis of expenditure by activities

Charitable activities
Total 2021
Activities
undertaken
directly
2022
£
173,177
132,427
Support
costs
2022
£
65,555
73,804
Total
funds
2022
£
238,732
206,231
Total
funds
2021
£
206,231

Analysis of direct costs

Staff costs
Rent and livery
Veterinary fees
Animal feed
Animal bedding
Exotic birds and animals
Hay and straw
Farrier
Equipment and supplies
Activities
2022
£
81,684
18,532
30,582
943
62
3,370
2,030
2,790
33,184
173,177
Total
funds
2022
£
81,684
18,532
30,582
943
62
3,370
2,030
2,790
33,184
173,177
Total
funds
2021
£
72,503
22,422
23,994
1,264
417
3,052
1,691
2,683
4,401
132,427

Page 12

Happy Endings Rescue

Notes to the financial statements For the year ended 28 February 2022

7. Analysis of expenditure by activities (continued)

Analysis of support costs

Activities
2022
£
Depreciation
2,500
Utilities
7,324
Repairs and maintenace
43,731
Fuel and transportation
4,533
Insurance
1,507
Office supplies and postage
44
Merchant fees
2,052
Professional services
2,114
Independent examination fee
1,750
65,555
8.
Independent examiner's remuneration
Fees payable to the Charity's independent examiner for the independent
examination of the Charity's annual accounts
Total
funds
2022
£
2,500
7,324
43,731
4,533
1,507
44
2,052
2,114
1,750
65,555
2022
£
1,750
Total
funds
2021
£
-
5,297
56,921
3,832
1,143
1,254
2,380
1,057
1,920
73,804
2021
£
1,920

9. Staff costs

2022
£
Wages and salaries
76,160
Social security costs
780
Contribution to defined contribution pension schemes
4,744
81,684
The average number of persons employed by the Charity during the year was as follows:
2022
No.
Employees
6
2021
£
68,295
516
3,692
72,503
2021
No.
4

Page 13

Happy Endings Rescue

Notes to the financial statements For the year ended 28 February 2022

9. Staff costs (continued)

No employee received remuneration amounting to more than £60,000 in either year.

10. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2021 - £NIL).

During the year ended 28 February 2022, expenses totalling £921 were reimbursed or paid directly to Trustee (2021 - £6,004). The expenses re-imbursed related to repairs on the animal enclosures.

11. Tangible fixed assets

Cost or valuation
Additions
At 28 February 2022
Depreciation
Charge for the year
At 28 February 2022
Net book value
At 28 February 2022
At 28 February 2021
Motor
vehicles
£
10,000
10,000
2,500
2,500
7,500
-

Page 14

Happy Endings Rescue

Notes to the financial statements For the year ended 28 February 2022

12. Fixed asset investments

Cost or valuation
At 1 March 2021
Revaluations
At 28 February 2022
Net book value
At 28 February 2022
At 28 February 2021
13.
Debtors
Due within one year
Other debtors
Tax recoverable
14.
Creditors: Amounts falling due within one year
2022
£
3,113
2,703
5,816
Listed
investments
£
79,294
16,289
95,583
95,583
79,294
2021
£
3,145
9,520
12,665
Other taxation and social security
Accruals and deferred income
2022
£
-
3,670
3,670
2021
£
772
1,920
2,692

Page 15

Happy Endings Rescue

Notes to the financial statements For the year ended 28 February 2022

15. Statement of funds

Statement of funds - current year

Balance at
Balance at 1 Transfers Gains/ 28 February
March 2021 Income Expenditure in/out (Losses) 2022
£ £ £ £ £ £
Unrestricted
funds
Designated
funds
Designated land
fund - - - 100,010 - 100,010
General funds
General Funds 250,142 195,967 (239,305) (100,010) 16,289 123,083
Total
Unrestricted
funds 250,142 195,967 (239,305) - 16,289 223,093
Statement of funds - prior year
Balance at Balance at
1 March Gains/ 28 February
2020 Income Expenditure (Losses) 2021
£ £ £ £ £
Unrestricted funds
General Funds 40,470 420,582 (209,287) (1,623) 250,142

Nature and purpose of designated funds

Designated land fund - this fund comprises money set aside with the intent of purchasing land for the charity's activities.

Page 16

Happy Endings Rescue

Notes to the financial statements For the year ended 28 February 2022

16. Analysis of net assets between funds

Analysis of net assets between funds - current year

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Total
Unrestricted
funds
2022
£
7,500
95,583
123,680
(3,670)
223,093
Total
funds
2022
£
7,500
95,583
123,680
(3,670)
223,093

Analysis of net assets between funds - prior year

Fixed asset investments
Current assets
Creditors due within one year
Total
Unrestricted
funds
2021
£
79,294
173,540
(2,692)
250,142
Total
funds
2021
£
79,294
173,540
(2,692)
250,142

17. Pension commitments

The Charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £4,744 (2021: £3,692). At the balance sheet, there were no contributions outstanding (2021 - £nil).

18. Related party transactions

During the year, the Trustees made donations to the Charity totalling £1,405 (2021: £884).

During the previous year, the Charity received donations from Faversham Animal Welfare, of which C Johns and T Kemp were also Trustees. The donations received amounted to £nil in 2022 (2021: £110,545) and were donated to the Charity on the closure of Faversham Animal Welfare.

Page 17