ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 CIO **Stables Thompson & Briscoe Chartered Accountants & Statutory Auditor Lowther House Lowther Street Kendal, LA9 4DX** ## CONTENTS - 1 Reference & Administrative Details - 2 - 12 Trustees Report 13 - 15 Independent Auditors’ Report 16 - 17 Statement of Financial Activities 18 Balance Sheet 19 - 36 Notes to the Financial Statements ## REFERENCE _AND_ ADMINISTRATIVE DETAILS Registered Office **The Wainwright Shelter** _Kapellan Grayrigg Nr Kendal Cumbria LA8 9BS_ Senior Management / Leadership Team **M Yates** _(General Manager)_ **R McGill** _(Shelter Manager)_ Solicitors **Harrison Drury & Co Ltd** _Bridge Mills Stramongate Kendal LA9 4BD_ ## Investment Advisors **Rathbone Investment Management** _Port of Liverpool Building Pier Head Liverpool L3 1NW_ ## Bankers **Charities Aid Foundation** _25 Kings Hill Avenue Kings Hill West Malling Kent_ Auditor **Stables Thompson and Briscoe Chartered Accountants and Statutory Auditor** _Lowther House Lowther Street Kendal LA9 4DX_ Charity Registration Number: 1153737 1 ## TRUSTEES’ REPORT The trustees present the annual report together with the financial statements and auditors’ report of the charitable incorporated organisation (CIO) for the year ended 31 December 2021. The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 and 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 published in October 2019. ## users Trustees and Officers The trustees and officers serving during the year and since the year end were as follows: user-tie Senior Management / Leadership ## **M Yates** ## **A Eze** ## **G Fraser** (Chair) ## **A Hall** ## **S Mawer** **J Park** (appointed 12 February 2022) ## **I Richards** ## **J Wain** ## **M Yates** ## **R McGill** ## STRUCTURE, GOVERNANCE AND MANAGEMENT ## file Governing Document ## shop Organisation Animal Rescue Cumbria (the Charity) is a charitable incorporated organisation (CIO) and is registered as a charity with the Charity Commission. The Charity was incorporated on 9 September 2013 and its Constitution outlines the objects and powers of the organisation; it is governed in accordance with the Constitution. A Board of Trustees is responsible for the governance and strategic direction of the Charity. The trustees meet on a regular basis to manage such areas as risk, development, human resources and all aspects of finance. Trustees appoint a General Manager to take overall responsibility for the day-to-day management of the Charity. A Shelter Manager is responsible for animal care and the day-today operation of the Shelter. A Charity Shop, led by a part-time retail manager, generates income to support the Shelter activity. This year, the Charity invested in a part-time Accounts Manager and a part-time Admin Assistant, and a full-time Marketing and Communications Officer. 2 ## Recruitment and Appointment of Trustees In accordance with the Constitution, the Board will comprise a minimum of three trustees. Trustees are appointed for a term of three years by a resolution of the trustees, passed at a properly convened meeting called under Part 10 of the Constitution Document. In selecting individuals to be appointed, the trustees shall consider the benefits of appointing a person who, through residence, occupation, employment or otherwise, has special knowledge of the area of benefit or who is otherwise able, by virtue of his or her personal or professional qualifications, to make a contribution to the pursuit of the objects or the management of the Charity. If, for any reason, trustees cannot be appointed in accordance with the foregoing provisions, the statutory power of appointing new or additional trustees shall be exercisable. **The trustees who have served during the year are listed in the Reference and Administrative Details.** ## chalkboard-user Induction and Training of Trustees New Trustees are provided with an **information pack** containing links to relevant sections of the Charity Commission website to provide an overview of the following areas: - **The strategic role and obligations of Board members, outlined in the Commission’s ‘The Essential Trustee’ document.** **Key documents, including the Constitution, that set out the operational framework for the Charity.** **The current financial position of the Charity, including the latest published accounts.** **Minutes of recent Board meetings.** ## **Future plans and objectives.** In addition, new Trustees are provided with a guided tour of the Shelter and Charity Shop, and time with management staff to familiarise themselves with operational matters. 3 ## triangle-exclamation Risk management In assessing risk, the trustees recognise that some areas of operation require the acceptance and management of risk. The Charity has compiled a register of the major risks to which the Charity is exposed, and has organised these under the following headings: **Governance Operational Financial Environmental Compliance Public Relations** Each risk is assessed on the basis of impact and likelihood, and control and mitigation procedures are identified.The register is updated **every three months** and **reviewed by the Board of Trustees** at a properly convened quarterly meeting. Trustees review and reassess the risks and satisfy themselves that adequate systems and procedures are in place to manage the risks identified. Where appropriate, risks are covered by insurance. All significant activities undertaken are subject to a risk review as part of the initial project assessment and implementation. Major projects have a dedicated section within the risk register. ## OBJECTIVES AND ACTIVITIES ## heart Charity Purposes The purposes of the Charity, as laid down in the Constitution are as follows: **1. To relieve the suffering of stray and unwanted animals that are in need of care and attention and to provide for sick or ill-treated animals.** **2. To provide and maintain an animal shelter and other facilities for the reception & care of stray & unwanted animals, and to re-home or foster where appropriate.** **3. To educate the public in all aspects of animal care and welfare.** ## paw How we Deliver Public Benefit We provide a service for pet owners who, for whatever reason, are no longer able to care for their cats or dogs: they may have had a change of circumstances such as a move to rented accommodation where pets are not permitted, or to a care home, or they may be struggling with ill health or simply unable to care for their pet. Some owners struggle with their pet’s behaviour and feel unable to cope. In such circumstances, owners can feel reassured that we will provide care, training and enrichment whilst seeking a loving and permanent home that can meet the individual animal’s needs. Where possible, and where requested, we try to work with owners to help them to keep a much-loved pet, for example, if training and behavioural advice is needed. We provide long-term advice and support to adopters who may need help with issues that can arise after the adoption. Surrendered animals have not always had the best start in life and sometimes behaviour in the new home can be challenging. The **“** safety-net **”** we provide to adopters throughout the life of the pet is much appreciated and reduces the likelihood of animals being returned to Shelter. 4 We are sometimes contacted by individuals and communities where a feral cat colony is growing out of control and causing local problems, e.g., through spreading disease or following attacks on domestic cats. Often, there are polarised views on feral cat colonies and we work sensitively with communities to ensure the best outcome for the cats and the community. We provide a trap-neuter-return programme whereby cats are humanely trapped, provided with veterinary treatment and neutered, and then returned to their original habitat where they can live out their lives with less impact on the community. We do not attempt to domesticate such animals as the process would be too stressful and is not considered good practice; however, we will occasionally re-home ferals to local farms as barn cats. Feral kittens, provided they are under 8 weeks’ old, can adapt to a domestic environment with intensive socialisation and we will attempt this in order to ensure a better life for them. Occasionally, we are called to assist with animal hoarding cases, working sensitively with individuals who have taken on more pets than they can reasonably care for. This involves helping these individuals to give up some or all of their pets to make their lives more manageable and to improve the welfare of all the animals. We provide the public, free of charge, a Forever Homes Service, whereby pet owners can register their pets with us and indicate their wishes in the event of the owner’s death. This provides peace of mind that their pet’s future is secured and that we will make every effort to find a loving home that meets their pet’s needs. Alongside rescuing, rehabilitating and re-homing animals, the Charity has an important educational purpose in reducing the number of animals that are surrendered to Shelters. In many cases, individuals have taken on a pet without understanding the cost & commitment required. Some are well -meaning & loving owners but perhaps do not understand the needs of their pet & how best to manage training. Others have let their pet’s health decline as they lack knowledge in animal welfare & nutrition. To address the Charity’s educational purpose, we speak to school groups and contribute to college programmes through work placements, lectures and careers events. We speak also to community groups to raise awareness of our work, attend country fairs and similar events, and organise our own open days. We promote good practice to the public through our newsletter and Charity pet shop. The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charitable company’s aims and objectives and in planning future activities. ## dog Focus of Our Activities ## calendar Key Constraints in 2021 The Charity’s activities over the year fully reflected the purposes for which the Charity was established. Our work continued to focus on our four key strategic objectives as follows: ## **PRIORITY 1:** _**Care**_ _For the dogs and cats we take in._ ## **PRIORITY 2:** _**Communicate**_ _To promote responsible cat & dog ownership._ ## **PRIORITY 3:** _**Develop**_ _Plans to ensure the resilience and sustainability of Animal Rescue Cumbria._ ## **PRIORITY 4:** _**Invest**_ _In our team of staff and volunteers through training and inspirational leadership and management._ Our work over the year was against the backdrop of the continuing **Covid-19 pandemic** , which affected every key aspect of the Shelter operation as we responded to the changing scenario and restrictions. At times over the year, we stood down volunteers, and our staff reverted to working in ‘bubbles,’ and working from home where appropriate, in order to protect the animal care team and thereby ensure that care of our animals was not disrupted. As in **2020** , it proved difficult to predict animal numbers and ensure that kennel and cattery capacity and staff availability were at an appropriate level to respond to fluctuating demand. We were able to retain our staff team through peaks and troughs in activity by using the _HMRC Flexible Furlough Scheme_ . The flexibility this provided meant that we never had to turn away an animal in need, nor were we ever overstaffed for the task. 5 The pandemic also restricted our ability to meet the educational aspect of our purpose through school visits and community talks as these were, for most of the year, not possible. However, our newly established pet-focused Charity Shop, Preloved for Pets, proved an alternative way to communicate with the pet-owning public in an informal way, and we were able to address community groups through Zoom presentations. ## PERFORMANCE AND ACHIEVEMENTS ## heart Care of Animals Over the year, animal numbers were unpredictable, showing marked fluctuations from week to week. With the continuing effects of DEFRA restrictions and lockdowns, numbers of cats and dogs over the year were similar to numbers in 2020, and significantly lower than in 2019, as illustrated below. We did not see a marked increase in the number of lockdown puppies until the end of the year. Over the year, the Charity took in **184 cats** and **65 dogs.** These figures were very slightly lower than in 2020 but remained significantly lower than intake in 2019. The lower numbers enabled the team to spend more time with each animal on assessments and enrichment to give each cat and dog the best chance of adapting and finding a permanent home, as articulated in our charitable purpose. Also, we had capacity to take on more ‘damaged’ dogs that had been rejected by other shelters to give them a last chance. Several of these dogs were facing euthanasia for behavioural reasons but were rehabilitated and became well-balanced family pets. Average time on Shelter remained low, despite restrictions on rehoming and long-term residents in rehabilitation. Balancing this out, there was an unprecedented demand for pets, and we were able to move animals on to their forever homes very quickly: it was not unusual to receive _200-300 enquiries_ for an animal, and many spent less than 10 days in Shelter compared with average time of 49 days over the past 10 years. Much of the Charity’s success in rehoming has been down to the establishment of a rigorous and systematic approach to assessing each animal’s needs and implementing an individual plan of training and enrichment. This approach is now embedded in our practice, and adopters are encouraged to continue activities when the animal goes to the new home. Our outreach work has involved supporting local communities with feral cat colonies, with our programme of trapping, neutering and returning ferals. We have been able to provide veterinary intervention to neuter cats, thereby preventing over-population, and to relieve suffering where animals are diseased. This has saved the lives of feral cats and reducted both the nuisance factor for communities and the health and safety risk to their domestic cats. 6 ## comments Communicating Despite the on-going pandemic restrictions, we continued to engage with our community. We grew our Facebook following by 2000 over the year, showcasing our work and sharing stories of our residents. In the latter half of the year, we resumed presentations to school and community groups via Zoom and began to accept school visits to site. For most of the year there were few opportunities to engage face-to-face with our supporters through traditional events; however, our Charity Shop which opened in November 20, proved an excellent vehicle for promoting our work and for offering advice and support to pet owners. Through a grant from the Samuel and Freda Parkinson Trust, we were able to purchase an electronic screen for our Charity Shop on which we can share news from the Shelter and promote animal welfare. During the year we launched our new website and developed an attractive new-style newsletter which proved popular with our supporters. We continue to work with a number of partner organisations. Once again, we were nominated **Charity of the Year** by our local Pets at Home store and whilst we were unable to support their fundraising efforts in store because of the pandemic, they were a wonderful support to our work, donating much-valued pet supplies to the Shelter. Nutriment Raw also nominated us **Charity of the Year** and we benefited throughout the year from high-quality dog and cat food for our residents. We also have opportunities to work in collaboration with the RSPCA Westmorland Branch, sharing capacity and resources to meet particular needs, e.g., where multiple animals have been taken in, or where a large feral cat colony has been identified. Individual fundraisers participated in charity challenges, one completing the gruelling Three-Peaks Challenge and another walking the Pennine Way to raise funds for the Charity. For the first time, we participated in the Big Give Christmas Challenge, _securing £3000 in pledges_ to provide match funding for public donations. During the Challenge week, **we raised over £7000** . The support that the Charity enjoys from its community was particularly evident in late October when 18 young kittens, born on a local farm, were left with us. They were in a poor condition and needed urgent veterinary care, which would cost around £2000. At the same time, these semi-feral kittens each needed intensive handling if they were to be socialised and rehomed as pets. As a small charity, our resources were limited and the window for socialisation was short. We launched an appeal for help from our Facebook community, both for donations and for kitten cuddlers. Within 4 hours, £4000 had been raised, at which point we closed the campaign. Also, numerous offers of help resulted in our recruiting some 20 volunteer kitten cuddlers, and we were inundated with kitten milk, toys and bedding from our supporters and local businesses. Despite having been remote from our community for so long due to Covid, it was heartening that there was still so much support for our work. 7 layer-group Developing The Charity’s main project in 2021 was progressing the redevelopment of the Shelter. After 4 years of searching for a new site for the Shelter, the Trustees concluded that it would be sensible to re-examine the option to redevelop the current site. A survey of the site confirmed that there had been no further subsidence of the steep slope but we were advised that any redevelopment should be sited away from the crest of the slope. An architect was appointed to prepare plans according to our specification, which included high-quality accommodation for our animals and sustainable design features. Pre-planning advice was sought, given the rural nature of the site and proximity to the National Parks. The advice gave the trustees confidence to commission additional surveys prior to submission of a planning application in 2022. Our Charity Shop, which opened in November 20, had its first full year of trading, producing a surplus to support Shelter activities, despite Covid restrictions. The first year was challenging as it proved difficult to recruit a suitable Shop Manager. However, by the end of the year, a very capable existing member of staff expressed an interest in the role, and this should provide stability for the future. The challenge of recruiting and retaining volunteers was an on-going issue throughout the year and, like other local and national charities, we do not envisage this will change in the foreseeable future. 8 boxes-stacked Investing The Charity invested in new staff to support its plans for the future. A part-time Finance Manager was appointed in January. In February, a Fundraising Manager was appointed but, due to lock-down restrictions, was unable to take up a full-time position, but worked remotely from the south of England part-time for 6 months. With plans for the development of the site progressing, the trustees agreed that the vacant role should take in the areas of Marketing and Communication. Opportunities for external staff development courses were limited due to the pandemic, but one member of the animal care team embarked on a feline behaviour course. Health and safety training took place at both the Shelter and the Charity Shop. The Shelter has invested in a small but targeted library resource on welfare and behaviour (feline and canine) to support animal care staff working with increasingly diverse conditions and behaviours in the animals in our care. Investment in the existing Shelter facilities remains on hold pending the planned development of the site. ## coins Financial Review The Charity’s income comes from various sources: donations from individuals surrendering and adopting animals, ad hoc donations from individuals, some of whom organise their own fundraisers on our behalf; fundraising events and activities such as open days; funds from partner organisations that choose us as their charity of the year; return on our investments; legacy gifts, the latter being windfall income; and income generated through the Charity’s retail outlet in Kendal. Wherever possible, Gift Aid is claimed on eligible donations. Income increased in 2021 to **£389,231** , compared with **£336,870** in 2020 and the pre-pandemic income of **£372,775** in 2019. Our investments performed well, achieving income of **£61,982** compared with £55,782 in 2020. The Charity has been fortunate in receiving some generous legacies in recent years. In 2021, legacy income amounted £76,862; this was lower than in the previous 2 years, but the figures for 2020 and 2021 were inflated by one exceptionally large legacy paid in 2 instalments over the 2 years. We were fortunate to receive grant income of **£16,000** to support a range of small projects and purchases. The trustees are grateful to The Samuel and Freda Parkinson Trust, Animal Friends and The Wainwright Society for their valued support during the year. Reduced activity within the Shelter resulted in a corresponding reduction in expenditure in some areas. Animal care costs were just £18,013, compared with the pre-pandemic figure of £39,134 in 2019. Staffing costs, on the other hand, showed an increase due to appointments to 2 additional posts. **Income for 2021 was £389,231 and operating expenses amounted to £337,430, delivering a surplus of £51,801 before gains on investments of £240,611. The Charity’s reserves on 31 December stood at £3,721,775, of which £2,500,000 has been designated by the trustees for the capital development of the shelter, £268,790 is invested in fixed assets including land and buildings, £376,279 is restricted endowment funds, £14,912 is restricted grants and £561,794 represents free reserves.** 9 home Policy on Reserves The main features of the charity’s reserves policy are as follows: - **The need for reserves will vary depending on the Charity’s financial position and continuous assessment of the many risks the Charity faces at a particular time.** - **The reserves will be assessed as part of the Charity’s mid-range planning process and the need to build reserves will also be considered in the annual planning and budgeting process.** - **Reserves exist either to provide short-term protection against downward fluctuations in annual revenues or capital receipts – or to provide long-term strategic financial support and development.** - **The reserves policy balances the need to build up long-term reserves against the need for short-term spending on core activities.** The current priority for the unrestricted general funds of Animal Rescue Cumbria is for the development of the current site to secure the long-term future of the Shelter. **Trustees have now formally agreed a fixed budget for the capital development of the site, investing the majority of its reserves (£2.5 million) in the project. Of the remaining reserves, which include the value of land, buildings and the restricted endowment fund, the trustees have agreed to retain a minimum of £1 million in reserves to provide protection against downward fluctuations in annual revenues and, in line with its business plan, to generate annual income towards operational costs.** ## file Investments and Investment Policy The Charity investments are intended to provide an income which, together with the capital, could be used to finance the long-term running of the Charity. The trustees recognise the risk associated with investment in mainstream financial markets and accept this risk in return for the prospect of additional returns over longer periods of time. Therefore, we wish to remain largely invested at all times, subject to cash reserves being held as part of the investment management process and to cover liabilities. The investments are medium to low risk, are well diversified and incorporate a range of assets including fixed-interest stocks, UK shares and overseas shares. In line with our ethos, we have excluded from the portfolio companies that use animals to research or test their products. Although capital appreciation is not a primary objective, taking one year with another and excluding capital withdrawals, both the income and the capital value of the fund should increase in line with inflation. The total return and performance of the investments are measured against an appropriate benchmark for the agreed risk mandate. 10 ## calendar Plans For Future Periods A priority for the trustees in 2022 will be the development of a new strategic plan for the period 2022 - 2027. This will be realised once there is greater clarity on the development of the site, its running costs and income-generation potential. We will plan to grow and diversify our income streams and build on the early success of our Charity Shop. Progressing the plans for redeveloping our Shelter will be the main focus for the trustees; it is hoped that planning permission will be achieved by the end of the summer and detailed design work will be completed by Autumn, allowing us to go out to tender in the Autumn. We remain committed to meeting the evolving needs of the animals that come into our care and to supporting our community. As we emerge from the pandemic, we envisage that changes in lifestyles and financial circumstances will impact on our work: already, we are seeing an increase in the number of animals being relinquished, many of them young and lacking in training and boundaries, and many with behavioural issues related to lockdowns and lack of socialisation. We anticipate that a challenging economic situation and possible recession may result in more animals relinquished for financial reasons, particularly where owners are unable to afford essential veterinary care. Training and development of our staff team will be a priority to enable them to meet the challenges of the post-pandemic period. We intend to offer improved animal welfare to our residents with a grooming facility to help those welfare cases that come to us with unkempt and matted coats. We plan to invest in our facilities and staff over the next year and to fund a grooming course for one animal carer in 2022, and to support others to complete animal welfare and behaviour courses. ## FINANCIAL INSTRUMENTS Objectives & Policies ## Cash Flow Risk ## Credit Risk The charity’s activities expose it to a number of financial risks including credit risk, cash flow risk and liquidityrisk. The charity does not use derivative financial instruments. The charity’s activities expose it primarily to the financial risks of changes in investment income due to market conditions over time. This is mitigated by the investments being managed by professional investment managers. The charity’s principal financial assets are bank balances and cash, trade & other receivables, and investments. The charity’s credit risk is primarily attributable to its trade receivables; however, these are generally low risk asmost of these relate to Gift Aid reclaims. 11 file Statement of Trustees’ Responsibilities The trustees are responsible for preparing the trustees’ report and the financial statements in accordance with the 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 year. Under charity law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable incorporated organisation 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: ## **Select suitable accounting policies and apply them consistently;** ## **Observe the methods and principles in the Charities SORP;** ## **Make judgements and 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 charity will continue in operation.** The trustees are 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) Regulations 2008 and the provisions of the trust deed.They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. ## pen Disclosure of information to auditor Each trustee has taken steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charity’s auditor is aware of that information. _**The trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware.**_ The annual report was approved by the trustees of the charity on 11 August 2022 & signed on its behalf by: ......................................... **G Fraser** _(Trustee)_ 12 ## INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ANIMAL RESCUE CUMBRIA (THE WAINWRIGHT SHELTER) CIO ## user Opinion We have audited the financial statements of Animal Rescue Cumbria (The Wainwright Shelter) CIO (the ‘charity’) for the year ended 31 December 2021, which comprise the Statement of Financial Activities, Balance Sheet, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 ’The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and applicable law (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 31 December 2021 and of its incoming resources and application of resources, including its income and expenditure, 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.** ## user 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 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 the provisions available for small entities, in the circumstances set out in note to the financial statements, 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. ## comment 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 twelve months from when the original financial statements were authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. 13 plus Other information The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained in the annual report. Our opinion on the financial statements does not cover the other information & except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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. ## paw Matters on Which We Are Required to Report by Exception 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 financial statements is inconsistent in any material respect with the trustees’ report; or** - **The charity has not kept adequate accounting records; or** - **The financial statements are not in agreement with the accounting records and returns; or** - **We have not received all the information and explanations we require for our audit.** ## users Responsibilities of Trustees As explained more fully in the Statement of Trustees’ Responsibilities (set out on page 12), 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. 14 file Auditor 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 regulations made under section 154 of that Act. 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our experience and from discussions with management. We reviewed any related correspondence and records of trustee meetings to assess compliance with laws and regulations and discussed the current position with management. We ensured the audit team were alert for any indications of non-compliance throughout the audit work. We assessed the charity’s policies and procedures on fraud risks. No instances of actual, suspected or alleged fraud were identified by us or the charity in the year. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities is available on the Financial Reporting Council’s website at: **www.frc.org.uk/auditorsresponsibilities** . This description forms part of our auditor’s report. ## file Use of This Report 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. Our audit work has been undertaken so that we might state to the charity’s 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 and its trustees as a body, for our audit work, for this report, or for the opinions we have formed. ......................................... **Helen Holmes BSc FCA (Senior Statutory Auditor)** _For and on behalf of Stables Thompson & Briscoe, Statutory Auditor_ Chartered Accountants & Statutory Auditor Lowther House, Lowther Street Kendal, LA9 4DX **Date 18/10/2022** 15 Statement of Financial Activities for the Year Ended 31 December 2021 (Including Income and Expenditure Account and Statement of Total Recognised Gains & Losses) The notes on pages 19 to 36 form an integral part of these financial statements. 16 Statement of Financial Activities for the Year Ended 31 December 2021 (Including Income and Expenditure Account and Statement of Total Recognised Gains & Losses) All of the charity’s activities derive from continuing operations during the above two periods. The funds breakdown for 2020 is shown in note 21. The notes on pages 19 to 36 form an integral part of these financial statements. 17 ## (Registration number: ) Balance Sheet as at 31 December 2021 The financial statements on pages 16 to 36 were approved by the trustees, and authorised for issue on 11 August 2022 and signed on their behalf by: ......................................... **G Fraser** _(Trustee)_ 18 Notes to the Financial Statements for the Year Ended 31 December 2021 ## heart 1. Charity status The charity is a Charitable Incorporated Organisation (CIO) - Foundation registered with the Charity Commission in England. The principal place of business is: **The Wainwright Shelter Grayrigg Nr Kendal Cumbria LA8 9BS** These financial statements were authorised for issue by the trustees on 11 August 2022. ## coins 2. Accounting policies ## Summary of significant accounting policies and key accounting estimates The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. ## Basis of preparation Animal Rescue Cumbria (The Wainwright Shelter) CIO 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 notes. ## Statement of compliance The financial statements have been prepared 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) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £. ## Going concern The trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity. ## Exemption from preparing a cash flow statement ## Income and endowments 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 the income receivable can be measured reliably. The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements. 19 Notes to the Financial Statements for the Year Ended 31 December 2021 ## Donations and legacies Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period. Legacy gifts are recognised on a case by case basis following the grant of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title to the asset having been transferred to the charity. ## Expenditure All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs. ## Grants receivable Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released. ## Investment income 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 bank.Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. ## Raising funds These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds. ## Support costs Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage. ## Charitable activities Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. ## Governance costs These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses. 20 ## Notes to the Financial Statements for the Year Ended 31 December 2021 ## Government grants Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income. ## Taxation The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. ## Tangible fixed assets Individual fixed assets costing £1,000.00 or more are initially recorded at cost. ## Depreciation and amortisation Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows: |Asset class|Depreciation method & rate| |---|---| |Freehold land|is not depreciated| |Freehold buildings|2% reducing balance| |Equipment|20% reducing balance| |Motor vehicles|25% reducing balance| |Fixtures and fttings|25% straight line or 50% straight line| ||based on location| ## Fixed asset investments Fixed asset investments, other than programme related investments, are included at market value at the balance sheet date. Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the Statement of Financial Activities in the period of disposal. Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at the year end. ## Stock Stock is valued at the lower of cost and estimated selling price less costs to complete and sell, after due regard for obsolete and slow moving stocks. Cost is determined using the first-in, first-out (FIFO). 21 ## Notes to the Financial Statements for the Year Ended 31 December 2021 ## Trade debtors Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business. Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables. ## Cash and cash equivalents Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. ## Trade creditors Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities. Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method. ## Fund structure Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the charity. Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose. The permanent endowment funds represent amounts given by Alfred Wainwright in the years up to 1992, to create a permanent endowment fund which have been invested to create a secure financial base for the charity in the future. Income on the endowment fund is credited to the general fund on receipt. 22 ## Notes to the Financial Statements for the Year Ended 31 December 2021 ## Financial instruments ## _Classification_ Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument.Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities. ## _Recognition and measurement_ All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. there exists a legally enforceable right to set off the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party. Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires. ## _Investments_ Investments in non-convertible preference shares and non-puttable ordinary or preference shares (where shares are publicly traded or their fair value is reliably measurable) are measured at fair value through profit or loss. Where fair value cannot be measured reliably, investments are measured at cost less impairment. Investments in subsidiaries and associates are measured at cost less impairment. For investments in subsidiaries acquired for consideration including the issue of shares qualifying for merger relief, cost is measured by reference to the nominal value of the shares issued plus fair value of other consideration. Any premium is ignored. ## _Fair value measurement_ The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique. 23 Notes to the Financial Statements for the Year Ended 31 December 2021 24 4. Income from other trading activities Unrestricted funds general Total 2021 Trading income; Shop income from sale of donated goods & services Sales of goods and services Petplan Shop grooming rent 25,606 68,676 4,774 3,542 25,606 68,676 4,774 3,542 Events Income,. Other events income Lotteries and competitions income 2,968 1,565 2,968 1,565 107,131 107,131 Unre5trlcted funds general Total 2020 Trading income; Shop income from sale of donated goods & services Sales of goods and services Petplan 10,411 12,073 5,106 10,411 12,073 5,106 Events income: Other events income Lotteries and competitions income 1,522 1,729 1,522 1,729 30.841 30,841 5. Investment income Unrestricted funds general Total 2021 Total 2020 Income from investments,. Dividends receivable from other listed investments Interest receivable from unlisted investments 61,907 61,907 44,175 11,188 Interest receivable & similar income. Interest receivable on bank deposits 64 64 419 61,982 61,982 55,782 6. Expenditure on raising funds a) Investment management o o o Unrestricted Endowment fund5 fund5 general permanent Total 2021 Other investment management costs: Other portfolio management costs 13,863 2,364 16,227 13,863 2,364 16,227 o 00 Unre5trirted Endowment funds funds general permanent Total 2020 Other investment management cost5: Other portfolio management Costs 5,562 1.662 7,224 5,562 1,662 7,224 Direct costs Total 2021 Costs of generating donations and legacies Costs of trading activities Investment management costs 1,338 84,553 16,227 1,338 84,553 16,227 102,118 102,118 Direct costs Total 2020 Costs of generating donations and legacies Costs of trading activities Investment management costs 3,423 8,799 7,224 3,423 8,799 7,224 19,446 19A46 7. Expenditure on charitable activities o o o Unrestricted Restricted funds funds general 120,320 12,374 2,373 2,994 746 2,759 19,388 3,980 3,552 16,797 608 Total 2021 Staff costs Rates and utilities Insurance Postage and stationery Advertising and website Repairs and renewals Care of animals Motor and travel Payroll and HR fees Depreciation Finance charges Staff training Sundry expenses Development 4,561 124,881 12,374 2,373 2,994 746 3,847 19,388 3,980 3,552 16,797 608 1,088 412 3,037 412 3,037 9,313 9,313 189,340 14,962 204,302 o o o Unrestricted Restricted funds funds general 138,034 9.472 2,145 1,185 829 3.717 24,837 3,118 4,493 13,033 871 Total 2020 Staff costs Rates and utilities Insurance Postage and stationery Advertising and website Repairs and renewals Care of animals Motor and travel Payroll and HR fees Depreciation Finance charges Staff training Sundry expenses Development 138,034 9,472 2,145 1,185 1,339 3,876 24,837 3,118 4,493 13,033 871 510 159 3,974 3,153 3,974 3,153 936 936 208,861 1,605 210,466 7. Expenditure on charitable activities o o o Activity undertaken directly 125,293 12,374 2,373 Activity support COStS Total 2021 Staff costs Rates and utilities Insurance Telephone and other costs Postage and stationery Advertising Repairs and renewals Care of animals Motor and travel Payroll fees Depreciation Finance charges Development 125,293 12,374 2,373 3,037 2,994 746 3,037 2,994 746 3,847 19,388 3,980 3,847 19,388 3,980 3,552 16,797 608 9.313 3,552 16,797 608 9,313 193,365 10,937 204,302 o o o Activity undertaken directly 118,904 9,472 2,145 Activity support costs Total 2020 Staff costs Rates and utilities Insurance Postage and stationery Advertising Repairs and renewals Care of animals Motor and travel Payroll fees Depreciation Finance charges Development Staff training Sundry expense5 19,130 138,034 9,472 2.145 1,185 1,339 3,876 24,837 3,118 4,493 13,033 871 1,185 1,339 3,876 24,837 3,118 4,493 13,033 871 936 936 3,974 3,974 3.153 3,153 180,295 30,171 210,466 ?9 8. Analysis of governance and support costs O-O-&- Unrestricted general Total 2021 Total 2020 Governance costs Audit fees Audit of the financial statements Independent examiner fees Examination of the financial statements Trustees remuneration and expenses Legal fees Professional fees 13,307 3,307 6,000 17741 24,084 1,806 3,645 17741 24,084 1,806 3,645 798 10,989 6,678 32,068 32,068 24,465 9. Trustees remuneration and ex enses During the year the charity made the following transactions with trustees: M Yates AHall M Yates received remuneration of £24,084 12020: £10,800} and £1,944 {2020: £1,1501 of expenses were reimbursed to M Yates during the year. Ms A Hall is a partner in Counterculture which was paid £3,04512020- £6,678) in the yearfor provision of accounting support. One trustee received expenses of £107 in the year to 31 December 2019. Ms M Yates acted as General Manager in the year and was paid in that capacity. No trustees have received any other benefits from the charity during the year. 4 (2020 - 4) of the above employees participated in the Defined Contribution Pension Schemes. No employee received emoluments of more than £60,000 during the year. The total employee benefits of the key management personnel of the charity were £26,160 (2020 - £49,839). 31 13. Taxation The charity is a registered charity and is therefore exempt from taxation. 14. Tangible fixed assets o o 00 Land and Furniture and bulldlngs equlpment Motor vehicles Total Cost ST At l January 2021 Additions 366,712 47,969 3,113 8,335 423,016 3,113 ST At 31 December 2021 366.712 51,082 8,335 426,129 Depreclatlon At ISTJanuary 2021 Charge for the year 108,251 4,569 24,269 12,150 8,022 78 140,542 16,797 ST At 31 December 2021 112.820 36.419 8.100 157,339 Net book value ST At 31 December 2020 253,892 14,663 235 268,790 ST At 31 December 2021 258,461 23,700 313 282,474 15. Fixed asset investments 2021 2020 Other investments 2,768,477 2.544,093 o o o Listed Unlisted investments investments Total Cost or Valuation At ISTJanuary 2021 Reval uation Additions Disposals ST At 31 December 2021 1,498,290 230,446 1,087,145 {222,1231 2,593,758 1,045,802 2,544,092 230,446 152,752 1,239,897 11,023,835) 11,245,958) 174,719 2,768,477 Net book value At 31 ST December 2020 2,593,758 174,719 2,768,477 ST At 31 December 2021 1,498,290 1.045,802 2,544.092 32 16. Stock 2021 2020 Stocks 11,724 11,834 17. Debtors 2021 2020 Trade debtors Prepayments Accrued income VAT recoverable Other debtors 257 424 10,587 3,371 926 12,987 319 9,994 24.226 14.639 18. Cash and cash equivalents 2021 2020 Cash on hand Cash at bank 112 112 660,066 592,318 660,178 592,430 19. Creditors: amounts falling n one year 2021 2020 Trade creditors Other creditors Accruals 5,411 1,159 5,050 5,458 288 10,361 11,620 16,107 20. Pension and other schemes Defined contribution pension The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to £1,25812020- £1,605). 33 21. Funds o-o-o o o o. Balance at Incoming Resources l January resources expended 2021 Transfers Other recognised gainsl (losses) Balance at 31 December 2021 Unrestricted funds General General fund 592,901 369,252 1303,3071 1500,0001 158,846 Designated Fixed assets Unrestricted Investments Site redevelopment 282,474 2,198,953 {16,7971 3,113 12,003,113) 2,500,000 500,000 268,790 402,948 2,500,000 3,171,738 3,330,584 207,108 2,481.427 (16,797) 1320,104) 207,108 Total unrestrlcted fund5 3,074,328 369,252 207,108 Restricted funds Restricted capital project samuel and Freda Parkinson Charitable Trust 4,000 3,979 17,979} 5,895 7,500 16,9831 16,4121 Van purchase Microchipping Progamme Total restricted funds 500 8,000 6,412 6,912 8,000 9.895 19.979 (14.962) 14.912 Endowment funds Permanent Permanent endowment 345,140 12,364} (337,430) 33,503 376,279 Total funds 3,429,363 389,231 240,611 3,721,775 21. Funds o-o-o o o-o. Balance at 1 January 2020 Incoming Resources resources expended Transfers Other recognised gainsl Ilossesl Balance at 31 December 2020 Unrestricted funds General General fund 600,293 329,370 1232,5151 1104,2471 592,901 Designated Fixed assets Unrestricted investments 273,452 2,139,057 113,0331 15,5621 {18,595) {251.110) 22,055 82,192 282,474 2,198,953 116,7341 (16,734) (16,734) Total unrestrlcted funds 2,412,509 104,247 2.481.427 3.074.328 369.252 3.074.328 Restricted funds Restri ted capita project Samuel and Freda Parkinson Charitable Trust 4,000 4,000 7,500 (1,6051 5,895 Total restricted funds 4,000 7,500 11,605) 9,895 Endowment funds Permanent Permanent endowment 364,212 3,381,014 11,6621 (254,377) 117,4101 134,144) 345,140 3,429,363 Total funds 336,870 Unrestrirted Endownment 21. Analysis of net assets between o o o o o- General Designated Restrirted Permanent Total funds at 31 December 2021 Tangible fixed assets Fixed asset investments Current assets Current liabilities Total net assets 268,790 2,392,200 510,748 268,790 2,768,477 696,128 {11,6201 3.721.775 376,277 170,466 {11,6201 158.846 14,912 3.171.738 14.912 376.279 o o o o o General Designated Restricted Permanent Total funds at 31 December 2020 Tangible fixed assets Fixed asset investments Current assets Current liabilities Total net assets 282,474 2,153,151 45,802 282,4742,7 2,498,291 668,075 119,4771 3.429.363 345,140 612,378 {19,4771 592.901 9,895 2.481.427 9.895 345.140 . Relate ty transact" There were no related party transactions in the year.