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2020-12-31-accounts

Charity Number: 1159571

THE HUMANE EDUCATION SOCIETY

Report of the Trustees and financial statements for the year ended 31 December 2020

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THE HUMANE EDUCATION SOCIETY

CONTENTS

Page
Trustees and Advisers 2
Trustees’ Report 3
Independent Examiner’s Report 9
Statement of Financial Activities 10
Balance Sheet 11
Statement of Cash Flows 12
Notes to the Accounts 13
Revenue Account 19
Expenditure Account 20

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THE HUMANE EDUCATION SOCIETY

TRUSTEES AND ADVISERS

HONORARY PRESIDENT Mrs L Dutton TRUSTEES Mrs J Thompson Mr C Barton Mrs A Brenninkmeijer Dr E Broadbelt Mrs C Brown Dr C Reed CHARITY NUMBER 1159571 REGISTERED OFFICE The Animal Sanctuary Newgate Wilmslow Cheshire SK9 5LN BANKERS NatWest plc 4 Grove Street Wilmslow Cheshire SK9 1EJ FINANCIAL ADVISER Renzo Giovannini Cheshire Wealth Consultancy St James’s Place Wealth Management 22a Victoria Road Hale WA15 9AD INDEPENDENT EXAMINER Mr A Pannell ACA CTA 8, Arlington Crescent Wilmslow Cheshire SK9 6BJ

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THE HUMANE EDUCATION SOCIETY

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

INTRODUCTION

The Trustees of the Humane Education Society present their annual report for the year ended 31[st] December 2020 under the Charities Act 2011, together with the financial statements for the year. The financial statements comply with the Charities Act 2011; the charity’s governing document, 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 (FRS 102) (effective 1[st] January 2015).

STRUCTURE, GOVERNANCE AND ADMINISTRATION

The charity is a Charitable Incorporated Organisation (CIO) with a constitution, and was registered with the Charities Commission in December 2014.

The Board of Trustees is responsible for the day to day governance and administration of the CIO. Decisions regarding rehoming and animal welfare are delegated to the staff except when significant veterinary fees are involved. Then the trustees will deliberate with the staff on the best way forward.

The Board of Trustees is responsible for the appointment of new trustees. New trustees will only be appointed after due consideration is given to their eligibility, personal competence and skills. New trustees, when appointed, are inducted into the working of the CIO by the existing trustees.

The Annual General Meeting of the charity was held via Zoom on Monday 26[th] October 2020, and at this meeting Mr Colin Barton and Dr Celia Reed were re-elected as Trustees. At the end of the meeting the Chair of Trustees, Mrs Janet Thompson, announced her intention to resign from the Board with effect from the 31[st] December 2020. At the next meeting of the Board of Trustees on 9[th] December 2020 Mr Colin Barton was elected Chair of the Trustees and it was decided to invite Mrs Elaine van der Zeil to join the Board. These decisions will be ratified by the members at the next Annual General Meeting.

The Trustees have identified the major risks to which the CIO is exposed, and have put procedures in place to manage those risks.

OBJECTIVES AND ACTIVITIES

The objectives of the CIO are:

  1. to promote the education of young people and adults in the humane principles and right treatment of all living creatures; and

  2. to promote humane behaviour towards animals by taking into its animal sanctuary animals that need care and attention due to sickness,

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maltreatment or poor circumstances, and treating and caring for them until they can be found homes.

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

The CIO achieves these objectives by organising educational talks and visits to/from schools and groups, by providing volunteering opportunities, by offering work placements for secondary school pupils, college and university students, and by effectively running the Wilmslow Animal Sanctuary. Donations, legacies and grants received, together with the fundraising activities of the volunteers, provide the necessary funds for these activities.

FINANCIAL REVIEW

A summary of the year’s results can be found on page 10 of this document.

Income

During 2020 the total income was £210,052 as compared to £157,005 in 2019, with an increase of around £40,000 in donations. Towards the end of 2020 we received two substantial donations (£15,000 each) in response to an appeal for help towards renovating our horse barn. The new website has proved to be a valuable source of donations. In addition, the charity signed up for Facebook Charitable Giving Tools which allows Facebook users to donate without leaving the page. A Christmas advent calendar appeal raised over £1,000 in this way.

This increase in donations compensated for the loss of fundraising revenue due to the coronavirus pandemic. We were unable to hold any of our usual on-site fundraising events during 2020, or to attend external events such as car boot sales and the local Artisan market. However, our volunteers were undeterred and organised small events, which allowed for social distancing, outside their homes. These cake, plant and bric-abrac sales raised over £2,500 and compensated for the loss of the Easter and Halloween events. A “Virtual pet Show” in which supporters sent in photographs of their pets also proved both popular and profitable. The Sanctuary hosted a “Bake Off” followed by an afternoon tea event to enjoy the entries and this was also a great success. These new ideas are likely to become firm favourites in our fundraising calendar. EBay sales were initially halted as volunteers were unable to post items, but once lockdown had eased they recovered well as volunteers had more time to list items and many buyers preferred to shop online. Altogether around £8,000 was raised from sales of donated items. The combination of innovative events and the generosity of our supporters and the general public meant that our income from appeals and fundraising was not significantly affected by the unusual circumstances of 2020.

However, the financial markets were affected both by Brexit and the pandemic, and the Trustees were unsurprised when the end of year valuation of our investments showed

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that they had lost ground during 2020. This loss was only £15,062 (under 4% of the value of the investments), and the Trustees are confident that it will be recouped in future years; the investment was always considered to be a long term strategy.

We would like to thank all those who remembered us in their wills, in particular Betty Blackwood (£53,000)

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

Expenditure

Total expenditure in 2020 was £214,079 compared to £198,997 in 2019. Two factors resulted in an increase in salary costs during 2020. During the Spring lockdown an additional member of staff was employed in order to facilitate dividing the staff into two completely separate teams. This step was taken in order to minimise the problems that would occur if a member of staff were to contract COVID-19. At the end of the year another member of staff was employed for maternity cover which created a second period in which there were six paid staff rather than the usual five. There was also an increase of around £10,000 in ‘Repairs and Renewals’ in 2020 compared to 2019 due to the extensive drainage work undertaken. A major capital project the Society undertook in 2020 was the extension and refurbishment of the office to provide more functional office and storage spaces, to install a small kitchen and to create a large new room to be used for education and fundraising. Together with the capitalised cost of the new septic tank this resulted in the increase in Fixed Assets of £113,638

ACHIEVEMENTS

Throughout 2020 the Trustees held regular meetings to manage the affairs of the CIO and to develop strategies for moving it forward. Major achievements of 2020 included:

  1. Continuing to provide high standards of animal care and to rehome animals during the extremely challenging conditions of a pandemic and national lockdowns

  2. Building the new education centre (the Dutton Room) and refurbishing the office and storage areas

  3. Installing adequate drainage around the Horse Barn

  4. Installing a new waste water system

The Sanctuary during the pandemic

Under normal circumstances the Sanctuary staff rota is such that, during any one week, each of the staff works closely with all the other staff members. Under Government regulations for the first national lockdown in March 2020, should one member of staff test positive for COVID-19 then the whole staff team would have had to self-isolate. To avoid this potential calamity, the Trustees appointed a sixth member of staff on a temporary

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contract, and divided the staff into two teams of three. The rota was reorganised so the two teams never met, ensuring that only one team would have to self-isolate should a member contract COVID. A list of people who could be employed if this situation were to occur was also drawn up. At the same time rehoming stopped and the Sanctuary was closed to volunteers. Fortunately, this strategy was successful and the staff were able to continue to provide the Sanctuary residents with the high standards of care they were used to. We commend the staff for the care they took in both their professional and personal lives to protect themselves, and thus the Sanctuary, from COVID.

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 (continued )

When lockdown was eased during late spring and early summer, new rehoming protocols were developed. In order to maintain social distancing, it was essential to limit the number of people on site at any one time, and home checks could not continue in the same form as before. Potential adopters were asked to register their interest in a particular animal through an online form, and their address was checked to ensure it complied with the Sanctuary’s rehoming guidelines. Then a ‘virtual’ home check was carried out through Facetime or Zoom, and a volunteer drove past the home to check that the surroundings were safe and secure. For rabbits and small animals, adopters were asked to send photos and dimensions of the cages the animal would be living in. Only after all this had been completed were members of the public given an appointment to visit the Sanctuary and their chosen animal. This was found to be a very streamlined system that resulted in almost all those who had appointments reserving an animal, and will continue in a post-pandemic future. Rehoming figures for 2020 (see table below) were lower than usual due to the pandemic. Not only was the Sanctuary closed for 3 months, but new procedures in place at the vets have meant that they could not see as many animals and it was more difficult to get appointments, particularly for surgical procedures.

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Animal Admitted Returned Rehomed
Cat/Kitten 176 1 107
Rabbit 5 0 6
Guinea Pig 5 0 5
Equine 0 0 1
Other 11 0 9
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The Dutton Room

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During the course of 2019 plans for a new education centre and a restructuring of the old office building were drawn up, the project put out to tender and a builder appointed. Work started in January and was making good progress when the nation went into lockdown. Even when builders were allowed back to work, a shortage of materials meant that progress was very slow. However, by early summer the building work was finished and the Sanctuary Monday Men started the huge task of decorating the whole building. The new education centre was named the Dutton Room in honour of former trustee Lin Dutton, who was passionate about both education and animals, and who played a major role in the development of the charity. Unfortunately, we were not able to welcome any groups to the Sanctuary during 2020 so the Dutton Room has not been used for its primary purpose. However, it proved invaluable for our summer afternoon tea fundraising event, and the new office and storage spaces are light, warm and fit for purpose.

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

Horse Barn Drainage

In recent winters with heavy rain there had been an issue with the drainage around the barn, resulting in one or two of the stables getting wet floors. This was considered to be an animal welfare issue and so French drains were dug around the barn and new land drains installed in the surrounding paddocks. As a result, during wet weather in the autumn, the paddocks remained reasonably dry and the problem of water seeping into the stables was resolved.

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Waste Water Treatment

The septic tank at the Sanctuary was very old and prone to overflow a little in very wet weather. This was not a health issue, but did cause the area outside the office to be rather smelly. With the construction of the new extension, and in accordance with new Governmental regulations, a new waste water system was installed to one side of the car park.

STATEMENT OF TRUSTEES RESPONSIBILITIES

Charity law requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and of its financial activities for the period together with its assets and liabilities at the end of the period, and to adequately distinguish any material special trust or other restricted funds of the charity. In preparing these financial statements the Trustees are required to:

TRUSTEES ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 (continued)

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

On behalf of the Trustees:

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Colin Barton
(Chair of Trustees)
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Date

…………………………….

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STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted/ Unrestricted/
Note
s
Total Funds Total Funds
2020 2019
£ £
Income from
Donations and legacies :
Legacies 54,461 40,283
Subscriptions and donations 154,404 114,487
Investments (bank interest) 1,187 2,235
Total Income 210,052 157,005
Expenditure on :
Charitable Activities
2
214,079 198,997
Total Expenditure 214,079 198,997
Net Income/(expenditure) on
charitable activities
(4,027) (41,992)
Net gains (losses) on Portfolio Investment
5
(15,062) 48,136
Total Net Income/(expenditure) for
the year
(19,089) 6,144
Reconciliation of Funds
Total funds Brought forward 1,135,609 1,129,465
Total Funds Carried Forward 1,116,520 1,135,609

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The notes on pages 13-18 form part of these financial statements

BALANCE SHEET FOR THE YEAR ENDED 31 DECEMBER 2020

Not
es
2020 2019
£ £ £ £
Fixed Assets
Tangible Assets
4
205,406 113,189
Investments
5
390,574 405,636
Total Fixed Assets 595,980 518,825
Debtors
6
5,501 4,290
Cash at bank and in hand 522,36
8
622,05
8
Total current Assets 527,86
9
626,34
8
Creditors
amounts falling due within one year
7
(7,329) (9,564)
Net Current Assets 520,540 616,784
Total Net Assets 1,116,52
0
1,135,60
9
The Funds of the Charity
Unrestricted Funds
9
1,116,520 1,135,60
9

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The notes on pages 13-18 form part of these financial statements

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020

Notes 2020 2019
£ £
Cash fows from operating activities:
Net cash provided by operating
activities
10
12,761 (19,813)
Cash fows from Investing Activities
Interest Income 1,187 2,235
Purchase of Tangible Fixed Assets (113,638) (2,152)
Net Cash used in investing activities (112,451) 83
Cash fows from fnancing activities
Change in cash and cash
equivalents
(99,690) (19,730)
in the reporting period
Cash and cash equivalents at the 622,058 641,788
beginning of the reporting period
Cash and cash equivalents at the
11
522,368 622,058
end of the reporting period

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Approved on behalf of the Trustees

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……………………………….. ………………………………..
C Barton - Trustee C Reed - Trustee
………………………………. ………………………………..
Date Date
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The notes on pages 13-18 form part of these financial statements

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NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. ACCOUNTING POLICIES

1.1 Basis of preparation and assessment of going concern

The 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 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) (effective 1 January 2015) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The charity constitutes a Public Benefit Entity as defined by FRS 102.

The financial statements have been prepared on the basis that this CIO (charity 1159571) and charity 207513 have always been part of the same reporting entity. Therefore, the assets and liabilities of charity 207513 (£200 cash at the bank) have been included in the balance sheet.

The trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern. There are no significant areas of judgements and key assumptions that affect items in the accounts except for depreciation which is detailed in note 1.8.

1.2 Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the items of income have been met, it is probable that the income will be received and the amount can be measured reliably

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

Income is only deferred when the criterion for income recognition has not been met, and occurs in the following circumstances:

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NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020

1.3 Investment income

Interest on funds 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.

1.4 Volunteers

In accordance with FRS 102 and the Charities SORP (FRS 102), the economic contribution of general volunteers is not recognised in the accounts. Further details of the contribution made by volunteers can be found in the Trustees’ Annual Report.

1.5 Expenditure

Expenditure is included on an accrual basis and is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

1.6 Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the Trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity’s work or for specific projects being undertaken by the charity.

1.7 Irrecoverable VAT

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

1.8 Depreciation

Depreciation has been provided on tangible assets to write off their cost less estimated residual value over their expected useful economic lives as follows:

Land Not depreciated Buildings 10% written down value Motor vehicles 25% written down value Animal welfare equipment 10% of the original cost Furniture and office equipment 25% of the original cost

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NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020

1.9 Debtors

Sundry debtors are recognised at the settlement amount. Prepayments are valued at the net amount prepaid.

1.10 Creditors

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

2.CHARITABLE
ACTIVITIES
31 Dec 31 Dec
2020 2019
Animal Sanctuary
expenses :
Feeding and care of horses and other
animals
13,619 14,347
Blacksmith and
veterinary fees
31,532 34,857
Salaries and NIC 110,20
5
97,673
Motor vehicle and travelling
expenses
1,705 2,129
Rent, rates and water 785 940
Heating and lighting 7,702 7,527
Telephone 595 595
Insurance 2,588 2,511
Printing, postage and
stationery
1,294 1,659
Bank and streamline
charges
531 552
Advertising (fundraising) 1,303 6,077
Repairs and renewals 17,366 7,309
Sundry expenses 1,160 1,574
Depreciation
21,421 18,718
Loss on disposal of fxed
assets
0 0
Accounting and other professional
fees
2,273 2,529
£198,9

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£214,0
79
97
3. STAFF COSTS
Salaries 104,29
9
92,158
National Insurance 3,864 3,799
Employer's pension
contribution
2,042 1,716
£110,2
05
£97,67
3

The average head count of employees during the year was 5.5 (2019: 5).

The trustees received no remuneration during the year (2019: £nil) and did not receive any expenses during the year (2019: £nil).

No employees earned in excess of £60,000 in the current year or previous year.

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020

4. FIXED ASSETS

4. FIXED
ASSETS
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2020
Sanctuar
y
Buildings
Motor
Vehicles
Animal
Welfare
Equipme
nt
Fixtures
&
Fittings
Total
£
£
£
£
£
Cost
At 1January2020 328,306
37,170
30,490
20,484
416,450
Additions 106,277
-
-
7,361
113,638
Disposals -
-
-
(100)
(100)
At 31 December
2020
434,583
37,170
30,490
27,745
529,988
Depreciati
on
At 1January2020 259,138
25,017
4,574
14,532
303,261
Charge inyear 10,863
3,038
3,049
4,471
21,421
Disposals -
-
-
(100)
(100)
At 31 December
2020
270,001
28,055
7,623
18,903
324,582
Net Book Value
At 31 December
2020
164,582
9,115
22,867
8,842
205,406
At 31 December
2019
69,168
12,153
25,916
5,952
113,189

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NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020

5. INVESTMENT ASSETS

The charity holds an investment through Rowan Dartington investment advisers. This investment is valued at market value at 31 December 2020 in the Balance Sheet. Gains or losses in its value for the year are included in the SOFA.

2020 2019
6. DEBTORS
Prepayments and accrued income 3,596 2,087
Other debtors 1,905 2,203
–––––––– ––––––––
£5,501 £4,290
–––––––– ––––––––
7. CREDITORS: Amounts falling due within one year
Trade creditors 6,447 8,380
Accruals and deferred income 882 1,184
––––––– –––––––
£7,329 £9,564
–––––––– ––––––––

8. RELATED PARTY TRANSACTIONS

The Trustees of the CIO are also trustees of the Charity, Humane Education Society, charity number 207513.

Aggregate donations by the trustees to the charity:

2020 2019
£16,039 £602

There are no outstanding balances with related parties as at 31 December 2020 (2019: £nil).

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NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020

9. ANALYSIS OF FUNDS

Funds 1 Incom Investm Funds 31
Jan e Expend ent Dec
2020 Loss 2020
£ £ £ £ £
1,135,60 210,05
Unrestricted funds 9 2 214,079 -15,062 1,116,520

The total net assets are allocated to the unrestricted fund, as there are no other fund types.

10. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES

FROM OPERATING ACTIVITIES
2020 2019
£ £
Net movement in funds (19,089) 6,144
Adjustmen
ts for :
Depreciatio
n charge
21,421 18,718
Loss on disposal of assets 0 0
(Gain)/loss in Valuation of
Investment
15,062 (48,136)
Interest
Income
(1,187) (2,235)
(Increase)/decrease in Debtors (1,211) 3,104
Increase/(decrease)in Creditors (2,235) 2,592
Net Cash provided by operating
activities
12,761 (19,813)
11. ANALYSIS OF CASH AND CASH EQUIVALENTS
2020 2019
£ £
Cash in
hand
522,368 622,058
Total cash and cash
equivalents
522,368 622,058

The following pages do not form part of the statutory financial statements

REVENUE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020

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2020 2019
£ £
Incom
e
Legacies
received/receivable
54,461 40,283
Subscriptions and
donations
154,40
4
114,48
7
Interest on bank deposit accounts 1,187 2,235
210,05
2
157,00
5
Deduct Expenditure 214,07
9
198,99
7
(see separate schedule)
Excess of Income over Expenditure for
theyear
(4,027) (41,99
2)
Change in value of portfolio
investment
(15,06
2)
48,136
Net Income/(expenditure) for
theyear
(19,08
9)
6,144

This page does not form part of the statutory financial statements

EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020

2020 2020 2019 2019
£ £ £ £
EXPENDITURE
Animal SanctuaryExpenses
Feeding and care of horses and small 13,619 14,347
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animals
Blacksmith and veterinary fees 31,532 34,857
Wages, salaries and Social Security
contributions
110,20
5
97,673
155,35
6
146,87
7
Motor vehicle and travelling expenses 1,705 2,129
Rent, rates and water 785 940
Heating and lighting 7,702 7,527
Telephone 595 595
Insurance 2,588 2,511
Printing, postage and stationery 1,294 1,659
Sundry expenses 1,160 1,574
Advertising (fundraising) 1,303 6,077
Repairs and renewals 17,366 7,309
34,498 30,321
Bank and Streamline Charges 531 552
Professional fees
-Accountancy
-Taxation, payroll & bookkeeping 999 720
-Other professional fees 1,274 1,809
2,804 3,081
Depreciation
-Buildings 10,863 7,605
-Motor vehicles & trailers 3,038 4,051
-Animal welfare equipment 3,049 3,049
-Furniture & ofce equipment 4,471 4,013
-Loss on disposal of Fixed Assets
21,421 18,718
Total Expenditure 214,07
9
198,99
7

This page does not form part of the statutory financial statements Approved on behalf of the Trustees

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C Barton - Trustee C Reed - Trustee
………………………………. ………………………………..
Date Date
23
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