ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 CIO **Stables Thompson & Briscoe Chartered Accountants & Statutory Auditor Lowther House Lowther Street Kendal, LA9 4DX** ## CONTENTS 1 Reference & Administrative Details 2 - 9 Trustees Report 10 Statement of Trustees’ Responsibilities 11 - 13 Independent Auditors’ Report 14 - 15 Statement of Financial Activities 16 Balance Sheet 17 - 32 Notes to the Financial Statements ## REFERENCE _AND_ ADMINISTRATIVE DETAILS ## Registered Office Solicitors ## Investment Advisors **The Wainwright Shelter** _Kapellan,Grayrigg Nr Kendal, Cumbria LA8 9BS_ **Harrison Drury & Co Ltd** _Bridge Mills, Stramongate Kendal, LA9 4BD_ **Rathbone Investment Management** _The Stables, Levens Hall Kendal, LA8 0PB_ Senior Management / Leadership Team ## Trustees **M Yates** _(General Manager)_ **R McGill** _(Shelter Manager)_ **T Hesmondhalgh** _(Charity Shop Manager)_ **A Eze** **G Fraser (Chair) A Hall** **V Kingsman S Mawer J Wain A M Williams** ## Auditor ## Bankers ## **Charities Aid Foundation** _25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4TA_ **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 2022. 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: ## **A Eze** **G Fraser** (Chair) ## **A Hall** ## **V Kingsman** (appointed 9 February 2023) **S Mawer** ## **J Park** (appointed 12 February 2022 & resigned 30 November 2022) ## **I Richards** (Resigned 30 November 2022) ## **J Wain** ## **A M Williams** (Appointed 9 February 2023) ## **M Yates** (Resigned 31 December 2022) user-tie Senior Management / Leadership **M Yates** _(General Manager)_ **R McGill** _(Shelter Manager)_ **T Hesmondhalgh** _(Charity Shop Manager)_ ## 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.** 2 ## coins Fundraising Disclosures The Charity raises funds primarily through donations from the public. Those surrendering an animal may make a donation to help with the costs of care and rehoming their pet, and adopters will also make a donation when taking an animal home. Our supporters organise individual fundraisers and we have been fortunate in receiving grant income, primarily from the Samuel and Freda Parkinson Trust. Some income comes from local businesses who have nominated Animal Rescue Cumbria as their Charity of the Year. From time to time, the Charity will organise an appeal to raise funds for particular purposes such major surgery for an animal. Our Preloved for Pets Charity Shop produces a surplus which contributes to operating costs. We operate a lottery under local authority licence, and this generates a modest monthly income. The Charity has been fortunate in receiving some generous legacies over the years. ## 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. 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 trapneuter-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 withus 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. The Charity will, wherever possible, provide respite care for cats and dogs where an owner has to go to hospital or requires support with their pet during or following an illness. The Charity also supports a number of local people who are housebound and unable to manage routine care of their pets such as nail clipping and regular worming and flea treatments. This enables them to keep their much-loved companions in good health and, importantly, with their owner providing vital companionship. 3 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 and commitment required when taking on an animal. Some are well-meaning and loving owners but perhaps do not understand the needs of their pet and how best to manage training. Others have let their pet’s health decline as they lack knowledge in animal welfare and 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 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 & volunteers through training and inspirational leadership & management._ ## calendar Key Constraints in 2022 As we emerged from the constraints imposed by the Covid-19 pandemic, we saw the start of a UK-wide animal welfare crisis. The unprecedented rise in pet ownership during the pandemic was followed by inflation and pressure on household budgets. We saw increasing numbers of animals relinquished, many of them young, poorly socialised and untrained. Some of these were the product of irresponsible breeding and in a poor state of health; some required expensive surgery. As a small shelter, managers had to make difficult intake decisions, as we tried to balance the needs of individual animals who might require extended time in Shelter and significant input from staff before rehoming, with the need to assist as many animals and owners as possible. The cost-of-living crisis affected us directly in increased costs of energy and animal care, in particular. Inflation will also have a major effect on the planned capital development project, and it is anticipated that lengthy delays in the planning process within the District Council will impact negatively on our ability to achieve the project as planned. A major challenge during the year was feline parvovirus which affected part of our cattery, and was a threat to unvaccinated cats and kittens. This was introduced by cats transferred in from a shelter in Yorkshire that was struggling with cat numbers. Whilst we immediately locked down the cattery, stood down volunteers, and worked with our vets to minimize the effects, we lost a number of unvaccinated cats and kittens over 2 months, which was very distressing for the team. 4 ## PERFORMANCE AND ACHIEVEMENTS ## heart Care of Animals Animal intake has increased significantly this year with 222 cats (compared with 184 the previous year). This was despite curtailing cat intake for a period of 2 months. The number of dogs entering our care in 2022 was 115 (compared with 66 the previous year). We took in our oldest cat ever at the age of 28, and rehomed her within 3 weeks. We also took in an unusually high number of elderly dogs with compromised health. It was heartening that we found homes for them within a matter of weeks. For most of our animals, time on shelter remains very low, with many spending less than 10 days with us. It is not unusual for animals, particularly puppies and young dogs, to receive over 100 enquiries. Our small staff team was supported by around 70 volunteers who contributed to animal care and maintenance of the Shelter: volunteers dedicated 3,103 hours of their time over the year. Our accrediting body, the Association of Cats’ and Dogs’ Homes, awarded the Shelter a score of 98.6% following an annual self-assessment exercise. ## comments Communicating Over the year, we have re-engaged with our community following the restrictions during the Covid-19 pandemic. We have taken part in events such as the County Show; welcomed school visits to Shelter; contributed to careers events at the local college and supported students with work placements. We have, after a long break, been able to go into care homes in our community to enable residents to interact with suitable rescue dogs. Our rescue dogs also participated in a church service in Sedbergh to celebrate animals, and staff have given talks to local branches of the Women’s Institute. We have continued to engage with our supporters through our Pre-loved for Pets Charity Shop in Kendal.During the pandemic, the shop proved an excellent vehicle for promoting our work and for offering advice and support to pet owners. 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 who donate much-needed pet supplies to the Shelter. This year saw the return of the Christmas Santa Paws Appeal in Store where we supported the Pets at Home team in raising £2239 for the Charity. Nutriment Raw supported us for a second year as one of their Charities of the Year. We have been grateful for monthly deliveries of high-quality dog and cat food for our residents. Kong, manufacturer of enrichment toys, kindly donated £5000 to the Charity at the end of the year. We were particularly grateful to the Wainwright Society for nominating us as the main beneficiary of their fundraising: 2022 marked the 50th year of the Charity, and the 20th year of the Society. We share a close relationship as Alfred Wainwright was a founding member of the Charity. Individual fundraisers and local businesses participated in charity challenges, including the Great North Run, charity walks and a 5-day canoe journey along the Great Glen in Scotland. We are grateful to the many groups and individuals, too numerous to mention, for their support to the Charity. Our Facebook community remains as committed and generous as ever, donating to specific animal appeals over the year and raising over £4000 in our ‘Christmas Dinner Appeal’ for the animals. 5 ## layer-group Developing The Charity’s main project in 2022 was progressing the redevelopment of the Shelter. The trustees and management worked with a specialist architect to submit a planning application for a major capital development on site. However, lengthy delays within the District Council planning department frustrated plans for an early start to the construction work. By the end of the year, the determination of the application was 4 months overdue, with little sign of progress. Worryingly, with each month that passed, inflation has increased materials and construction costs. In turn, this inflates fees and associated costs. At the end of the year, it appears that the full project might become unaffordable, if progress is not made early in the new year. The trustees continue to put pressure on the District Council to reach a decision. After a challenging first year, our Pre-loved for Pets Shop has achieved a significant surplus in 2022 under new leadership. The shop manager is working reduced hours which has enabled a part-time assistant to be engaged.This has provided greater stability and flexibility, and recruitment of additional volunteers has further strengthened the shop team. Over the year, volunteers dedicated 1,340 hours of their time to charity shop operations. The shop is becoming better known and, in the final quarter sales of donated and bought-in goods showed a pleasing upturn. ## boxes-stacked Investing We continue to support our animal care staff working with increasingly diverse conditions and behaviours in the animals in our care. Two staff members have engaged in Level 3 diploma courses in Feline Psychology and Behaviour, funded by the Charity. One completed with Distinction and the other will complete next year. Thanks to a generous grant from the Samuel and Freda Parkinson Trust, one of our staff was able to complete a Level 2 grooming course. The grant also enabled us to set up a grooming room where she can work on the dogs and cats that come in neglected and with badly matted coats. A grant from Animal Friends enabled us to train our entire team in microchipping and we ran a free microchipping event from our charity shop in Kendal. Further free events will be organised across our community when microchipping of cats becomes a legal requirement. Investment in the existing Shelter facilities remains on hold pending the planned development of the site. 6 ## 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 decreased in 2022 to £381,717, compared with £389,231 in 2021. Our investments performed well, achieving income of £71,600 compared with £61,982 in 2021. The Charity has been fortunate in receiving some generous legacies in the past and the Charity is grateful to all those who leave a gift, large or small, in their will. In 2022, legacy income amounted to £52,006 , compared with £76,862 in 2021. We were fortunate to receive grant income of £10,000 ( 2021 - £16,000 ) to support a range of small projects and purchases. The trustees are grateful to The Samuel and Freda Parkinson Trust for their valued support during the year. Expenditure increased from the 2021 level, reflecting increased activity following the pandemic. Animal care costs were £31,004 in 2022 compared with £19,388 the previous year . **Income for 2022 was** £381,717 **and operating expenses amounted to** £409,550 **, delivering a deficit of** £27,833 before a fall in investment values of £276,936 **. Last year the charity made a surplus on operating activities of £51,801 with investment gains of £240,611. The Charity’s reserves on 31 December 2022 stood at** £3,424,371, of which £3,084,846 was unrestricted. 7 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 not formally agreed a fixed budget for the capital development of the site as the actual cost will be determined through the tender process in 2023. However, it is anticipated that the cost will be in excess of £3million and that a significant amount of this will be covered from free reserves.** **The Trustees have agreed that a minimum of 9 months’ operating costs will be retained in free reserves to provide protection against downward fluctuations in annual revenues.** 8 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. ## FINANCIAL INSTRUMENTS Objectives Cash Flow Risk Credit Risk & Policies The charity’s principal The charity’s activities The charity’s activities financial assets are bank expose it primarily to the expose it to a number of financial risks of changes balances and cash, trade financial risks including & other receivables, and credit risk, cash flow risk in investment income due to market conditions over investments. The charity’s and liquidityrisk. The credit risk is primarily time. This is mitigated by charity does not use attributable to its trade derivative financial the investments being receivables; however, instruments. managed by professional these are generally low risk investment managers. asmost of these relate to Gift Aid reclaims. ## calendar Plans For Future Periods During 2022, the trustees participated in a facilitated away day to take stock of internal and external factors affecting the Charity, and subsequently developed a new, 5-year Strategic Plan. The plan defines new goals, strategies and implementation plans within the 4 strategic priorities of care, communicate, develop and sustain. The planned capital development project will be the main priority for 2023, and Trustees are committed to progressing the project as quickly as possible once planning consent is secured, and making significant progress on the construction within the next year. Fundraising, both for completion of the capital project and to achieve longer-term financial sustainability, will be prioritised: trustees have committed to investing in a fundraising post in 2023 and will form a fundraising sub-group to support this key area. We remain committed to meeting the evolving needs of the animals that come into our care and to supporting our community. Training and development of our staff team and volunteers will be a priority to enable them to meet the challenges of the post-pandemic period. We will continue to fund suitable courses for staff and aim next year to provide more opportunities for individuals to attend external courses and conferences: these will enable them to build a network of professional contacts whilst enhancing their knowledge and skills. For volunteers, we shall provide a range of in-house training events. 9 ## 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 monitor progress against the strategic plan, and 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-to-day operation of the Shelter. A Charity Shop, led by a part-time retail manager, generates income to support the Shelter operations. Book-keeping is outsourced to a local accountancy business. ## user Recruitment and Appointment of Trustees In accordance with the Constitution, the Board will comprise a minimum of three trustees. Trustees are appointed for an initial 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 persons 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. In the first instance, individuals are welcomed to the Charity as prospective Trustees, without voting rights, to allow them time to decide whether the role and level of commitment are suitable for them. Formal appointments are made within 6 months. **The trustees who have served during the year are listed in the Reference and Administrative Details.** 10 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. ## 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: **----- Start of picture text -----**
Governance Operational Financial Environmental
HR Compliance Public Relations
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A separate risk register exists for the Charity Shop, as a relatively new activity involving major investment. Additional risk registers may be required for significant activities, for example, to support a major project or capital development, which may entail very specific risks for a limited period. 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. 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) and applicable law and regulations. The law applicable to charities requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity 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 constitution. The trustees 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. The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. ## 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 2023 & 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 2022, 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 2022 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 ccordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## 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 trustees are responsible for the other information.The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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. We have nothing to report in this regard. paw Matters on Which We Are Required to Report by Exception In the light of our knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Report. We have nothing to report in respect of the following matters where the Charities (A ccounts and Report) Regulations 2008 requires us to report to you if, in our opinion: - **Adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or** - **The financial statements are not in agreement with the accounting records and returns; or** - **Certain disclosures of trustees remuneration specified by law are not made; 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 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. 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: 23.09.2023 **Stables Thompson &Briscoe is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section** 15 **1212 of the Companies Act 2006.** ## Statement of Financial Activities for the Year Ended 31 December 2022 The notes on pages 17 to 32 form an integral part of these financial statements. 16 ## Statement of Financial Activities for the Year Ended 31 December 2022 continued All of the charity’s activities derive from continuing operations during the above two periods. The funds breakdown for 2021 is shown in note 21. The notes on pages 17 to 32 form an integral part of these financial statements. 16 ## (Registration number: 1153737) Balance Sheet as at 31 December 2022 The financial statements on pages 14 to 32 were approved by the trustees, and authorised for issue on 11 August 2023 and signed on their behalf by: The notes on pages 17 to 32 form an integral part of these financial statements. ......................................... **G Fraser** _(Trustee)_ 18 Notes to the Financial Statements for the Year Ended 31 December 2022 ## coins 1. Accounting policies ## 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. ## Basis of preparation Animal Rescue Cumbria (The Wainwright Shelter) CIO meets the definition of a public benefit entity under FRS 102. The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. 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. ## Income and endowments Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability. 19 ## Notes to the Financial Statements for the Year Ended 31 December 2022 ## 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. ## 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. ## 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. ## 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 2022 ## 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 2022 ## 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. ## Pensions and other post-retirement obligations The charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment. 22 ## Notes to the Financial Statements for the Year Ended 31 December 2022 ## 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 2022 24 3. Incomefrom other trading activities Tradlng Income: Shop incomefrom Sale of donated goods & services Sales of goods and services Other trading income Unrestrlcted funds general Total 2022 27,400 97,563 5,465 27,400 97,563 5,465 Events income. Otherevents income Lotteries and competitions income 3,841 2,089 3,841 2,089 136,358 136,358 Unrestricted funds general Total 2021 Trading income; Shop income from sale ofdonated goods & services Sale5 of goods and service5 Other trading income Events income," Otherevents income Lotteries and competitions income Property rental income 25,606 68,676 4,774 25,606 68,676 4,774 2,968 1,565 3,542 2,968 1,565 3,542 107,131 107,131 4. Investment income o o o Unrestrirted funds general Total 2022 Total 2021 Income from Investments: Dividends receivable from other listed investments NS&I bond interest 69,141 69,141 61,907 Interest receivable & simllar Income; Interest receivable on bank deposits 2,459 2,459 64 71.600 71.600 61.982 5. Other Income o 00 Unrestrirted funds general Total 2022 Total 2021 Other income 1.513 1,513 1,383 6. Expenditure on raising funds Investment mana ement o 00 Unrestrirted Endowment funds funds general permanent Total 2022 Other investment management C05ts.' Other portfolio management costs 16,125 2,468 18,593 16,125 2,468 18,593 o 00 Unrestricted Endowment funds funds general permanent Total 2021 Other Investment management costs; Other portfolio management costs 13,863 2,364 16,227 13.863 2.364 16.227 Dlrert costs Total 2022 Costs of generating donations and legacies Costs of trading activities Investment management costs 2,083 111,938 18,593 2,083 111,938 18,593 132,614 132,614 Dlrect 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 7. Expenditure on charitable activities o 00 Unrestrirted Restricted funds funds general 117,269 12,853 2,798 1,603 2,199 1,716 30,092 4,032 3,074 12,652 497 Total 2022 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 234 117,503 12,853 2,798 1,603 2,199 1,716 31,004 4,599 3,074 12,652 497 5,166 4,150 43.160 912 567 5.166 24 4,126 43,160 236,071 6.903 242,974 o o o Unrestrlcted Restricted funds funds general 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 120,320 12,374 2,373 2,994 746 2,759 19,388 3,980 3,552 16,797 608 4,561 124,881 12,374 2,373 2,994 746 1,088 3,847 19,388 3,980 3.552 16,797 608 412 412 3,037 3,037 9,313 9,313 189,340 14.962 204,302 7. Expenditure on charitable activities o 00 Activlty undertaken dir•ctly 117,503 12,853 2,798 Activlty support costs Total 2022 Staff costs Rates and utllities Insurance Telephone and othercosts Poslage and slalionery Advertislng Repai￿ and renewals Care of aiiinials Motor and travel Payroll fees Oepreciatlon nance charges Stalf iralning Developmenl 117,503 12,853 2,798 4,150 1,603 2,199 1,716 31,￿4 4,599 3,074 12,652 497 5,166 43,160 4,150 1,603 2,199 1,716 31.004 4,599 3.074 12.652 497 5,166 43.160 231,948 11,020 242,974 o 00 Artlvlty undgrtak•n dlr•rtly 125,293 12,374 2.373 Actlvlty support costs Total 2021 Staff costs Rates and utilities Insurance Telephone and othercosts Postage and stationery Advertising Repairs and renewals C3re ofanima15 Motor and travel Payroll fees Depie(iation Finance charges Development 125,293 12.374 2,373 3,037 2,994 746 3,847 19.388 3,980 3,552 16,797 608 9,313 3,037 2,994 746 3,847 19,388 3,980 3.552 16,797 9.313 193,365 10.937 204,302 8. Analysis of governance and support costs o 00 Unrestrirted general Total 2022 Total 2021 Governance costs Audit fees Audit of the financial statements Independent examinerfees Examination of the financial statement5 Trustees, remuneration and expenses Legal fee5 Trustee expenses Other governance costs Accountancy & bookkeeping 3,616 3,616 3,307 17741 24,084 1,806 22,272 22,272 610 610 1,872 5.592 1,872 5.592 3,645 33,962 33.962 32.068 ne During the year the charity made the following transactions with trustees: Myates A Hall M Yates received remuneration of £22,272 12021.. £24,084) and £2,03712021- £1,9441 ofexpenses were reimbursed to M Yates during the year. Ms A Hall 15 a partner in Counterculture which was paid £1,26012021 £3,045) in the year for provision of accounting 5UPPOrt. 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. 10. Independent examiner's remuneration Examination of the financial statements 2022 2021 17741 ?9 No employee received emoluments of more than £60,000 during the year 30 13. Pension and other schemes Defined contribution ension scheme 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 £1,80412021 £1,258). 14.Taxation The charity is a registered charity and is therefore exempt from taxation. 15. Tangible fixed assets o o o o Land and Fumiture and bulldlngs •quipmonl Motor v•hlclas Total Cost Al I" January 2022 Additions Al 315r December 2022 3fJ6,712 51,082 8335 24,050 31385 426.129 24.850 366.712 51,882 450,979 D•pr•clatlon Al l January 2022 Charge for ihe year Al 31" December 2022 112,820 4.478 36,419 7,705 44,124 8,100 1.562 157.339 13,745 117,298 9.662 171,084 Net bookvalue Al 31" December 2022 249,414 7,758 14,663 22,723 235 279,895 51 Al 31 December 2021 253,892 268,790 16. Fixed asset investments 2022 2021 Other investments 2,480,314 2,768,477 o o o Listed Unlisted investments investments Total Cost or Valuation At l January 2022 Revaluation Additions Disposals At 31 December 2022 2,593,758 1262,3671 130,290 1134,6771 174,719 2,768,477 1262,3671 130,290 1156,0861 2.480,314 121,4091 2,327,004 153,310 Net book value At 31 ST December 2022 2,327,004 153,310 2,480,314 ST At 31 December 2021 2,593,758 174,719 2,768,477 17. Stock 2022 2021 Stocks 14,539 11.724 18. Debtors 2022 2021 Prepayments Accrued income VAT recoverable Other debtors 937 926 9,960 12,987 319 10,067 9,994 20,964 24,226 12 19. Cash and cash equivalents 2022 2021 Cash on hand Cash at bank 112 643,859 112 660,066 643,971 660,178 20. Creditors: amounts falling one year 2022 2021 Trade creditors Other taxation and social security Other creditors Accruals 7,527 2,734 158 5,411 1,159 4,893 5,050 15,312 11,620 33 21. Funds 000000 Balance at Incomlng Resource5 1 January resources expended 2022 Transfers Other recognised gainsl (1055esl Balance at 31 December 2022 Unrestricted funds General General fund 158,846 371,182 1386,4341 161,357 304,951 Designated Fixed assets Unrestricted Investments Site redevelopment 158,846 268,790 402,948 2,500,000 3.171.738 113,7451 24,850 1179,2771 279,895 1223,6711 2,500,000 113,745) (154,427) 1223,6711 2,779,895 (400,1791 6,930 1223,6711 3.084,846 Total unrestrlcted funds 371,182 Restricted funds Samuel and Freda Parkin50n Charitable Trust i 0,000 14,3321 1181 5,650 Van purchase Microchipping Progamme Redevelopment appeal Total restricted funds 6,912 16,9121 8,000 12,5711 5,429 535 535 14,912 10,535 16,903) 16,9301 11.614 Endowment funds Permanent Permanent endowment 376,279 3,721,775 12,4681 (409,5501 145,9001 327,911 1269,5711 3.424,371 Totalfunds 381.717 21. Funds 000000 Balance at Incomlng Resourc•s 1 January resourcos •xpended 2021 Transfars Oth•r r•cogni5ed gainsl (losses) Balan<4 at 31 D?￿mbar 2021 Unrestrlcted funds G•n•ral General fund 592,901 369252 1303,3071 1500,000) 158.846 09￿gnated fixed assets ljnrestricted Inveslmenls Sile redevelopment 282,474 2.198,953 (16,797) 3,113 12,LKI3,1131 2.500,0(K) 500.000 268,790 402.948 2.500.000 207,108 Total unrestrlct¢d lunds 1481A27 3.074.328 (16,797) 1320,104) 207,108 207,108 3,171,738 3,330,584 369,252 Restricted funds Restri ted capita project Samuel ar)d Freda Parkinson Charitable Injst 3.979 17,9791 s￿95 75CK) 16,9831 16.412) Van purchase Micro(hipping programme soo 6A12 6,912 8.000 8.000 Total restrlrted funds 9,895 19,979 114.9621 14,912 Endowment funds Permanent Permanenl endowment 345.140 12.364) 1337,4301 33,503 240.611 376.279 Total funds 3.429.363 389.231 3.721,775 Unr•strlct•d Endownm•rt 22. Analysis of net assets between funds o o o o o General Designated Restricted Pernianent Total funds at 31 D•C•M￿r 2022 Tangible fixed a55ets Fixed asset investments Current assets Current liabillties Total ngt assets 279.895 2,152,403 347,597 279,89S 2.480,314 679,474 115,3121 327,911 11,614 320,263 115,3121 779,895 327,911 3.424,371 o o o o o General Designated Restrirted Pernmnent Total funds at 31 D•<•mb•r 2021 Tangible fixed a55ets Fixed asset investments Current assets Current liabilities Totsl net assets 268,790 2.392,2(M) 510,748 268,790 2.768A77 696,128 111,6201 3.721.775 376277 320.263 115,3121 158,846 14,912 3.171.73 14,912 376,279 There were no related party transactions in the year. 36