Company registration number: CE002670 Charity registration number.. 1160509 Munchkins Miniature Shetland Rescue {A company limited by guarantee) Annual Report and Financial Statements forthe Year Ended 31 August 2024 WESTCOTTS HARTERED ACCOUNTANTS & BUSIMESS ADVISERS
Munchkins Miniature Shetland Rescue Contents Reference and Administrative Details Trustees, Report Independent Examiner's Report Statement of Financial Activities Balan Sheet Notes to the Financial Statements 9t017
Munchkins Mlnlature Shetland Rescue Reference and Administrative Detalls Trustees Tcmarx K M Lavery S A Ratcliffe (appointed 19 December 2024) F E Marx (appointed 19 December 2024) A G Foxcroft (resigned 14 November 2024) J E Walters (resigned 17 October 2023) Charity Reglstration Number 1160509 Company Reglstratlon Number CE002670 Reglstered Office Morganhayes Famihouse Southleigh Colyton Devon EX24 6RY Independent Examiner Westcotts (SW) LLP Chartered Accountants Timberly South Street Axminster Devon EX13 SAD Accountants Westcotts rimberly South Street Axminster Devon EX13 SAD Page 1
Munchkins Miniature Shetland Rescue Trustees. Report The trustees. who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 August 2024. Objectives and activities Objects and aims The charitable objective of the charity is 'for the benefit of the public to relieve the suffering of miniature Shetland ponies in need of care and attention and, in particular. to provide and maintain a rescue home or other facilities for the reception, care and treatment of such ponies.. In the last year we have cared for 63 ponies, of which 20 were new arrivals {including some ponies that have been returned from their foster homes) and 4 have been rehomed. All have been provided with suitable grazing and additional feed, hay and supplements as appropriate. All receive regular veterinary treatment including vaccinations, womiing and dental care. In addition, several ponies have been treated for ongoing chronic conditions and many others need specialist management to control laminitis. Purpose built stables, a sand turn out area and an enrichment mud controlled mat area are available for those which need it and field shelters are also provided. In addition, a large concrele area around the barn is used in adverse weather conditions. We have had a track system installed for use primarily by our laminitic ponies and this track is being continued around our 12.3-acre site. All ponies are checked and handled daily by our team of volunteers, including our Yard Assistant who asso ensure that all facilities are kept clean and safe. We are contacted regularly by members of the public reporting ponies in need or requesting help for their own ponies owing to personal circumstances. In choosing those most in need, the Trustees have regard for the guidance issued by the Charity Commission on public benefit. Where the physical and behavioural condition of the ponies is suitable, we seek long-term foster homes. which are rigorously checked both before and after placement. Public benefit The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Chariiy Commission for England and Wales. Page 2
Munchkins Miniature Shetland Rescue Trustees. Report Achievements and performance Munchkins continues to thrive as a busy and effective rescue centre with a well-established reputation within the UK and overseas. We have been recognised by many visitors and professionals as exemplifying best practice in our work with miniature Shetlands, whose requirements are highly specialised. Our tenth year as a charity has again been one of many ups and downs. We have remained open to our supporters who are on our 'sponsor a pony scheme,. We now have approximately 60-70 volunteers, and we would like to express our thanks to those volunteers who continue to provide exemplary care for the ponies-, a number of these volunteers have additional needs. physical and mental disabilities and Some attend with carers. We also offer opportunities for students to undertake their Duke of Edinburgh Awards and work experience placements. We work very closely with our equine vets - Summerleaze Equine Vets (Kilmington) who provide an outstanding veterinary service for our ponies. We also work closely with our behaviour and massage therapists who work very closely with our ponies and provide detailed expertise and Knowledge in this regard. We were able to attend several local fundraising events which and also visited some local care homes. We held our annual summer fayre which again was extremely successful., this is our main fundraiser of the year and we have over 1,000 members of the public attend. We were lucky enough lo receive financial support in the form of grants from the following organisations and we would like to say a big thank you to them for supporting the work that we do. We have also received a number of generous donations from supporters towards our major projects. Hilda Holmes Trust Fund Animal Rescue Foundation The Mills Equus Trust Pets Foundation Beryl Evetts and Robert Luff Animal Welfare Trust Limited Munchkins continues to be a very proud member of the National Equine Welfare Council. NEWC is a nationally recognised body, representing and supporting equine welfare charities throughout the UK. Its aims are to educate and to lobby for regulation and law enforcement to protect the health and welfare of all horses, ponies and donkeys in the UK. By becorning a NEWC member, Munchkins demonstrates that a5 a charity we have the welfare and care of our ponies as our top priority at all times. Our on-site portable office is a great asset to us. We are awaiting planning permission from East Devon District Council for the erection of a second barn to include storage for haylstrawlmachinery and provide a large sheltered hard standing area for our ponies (especially ou r elderly herd) to use in adverse weather. This application was submitted in March 2024 and we are still awaiting the decision (February 2025). Munchkins always strives to provide a safe and comfortable home for our rescued ponies and beautiful and peaceful place to visit and enjoy. Page 3
Munchkins Miniature Shetland Rescue Trustees. Report Financial review The financial stalements and the accounting policies used in their preparation comply with all the current statutory requirements and with the governing document. The Slatement of Financial Activities shows the charity had a total income of £228,498 (2023: £165,724) and total expenditure of £183,375 (2023.. £126,727} during the period. Income exceeded expenditure in the period by £45,123 (2023.. £38,997). The total reserves held at the year end were £296,729 (2023.. £251,606}. Of this £33,517 12023.. £11,357} was restricted. Structure, governance and management Nature of goveming document Munchkins Miniature Shetland Rescue is a charitable incorporated organisation govemed by a constitution dated 16 February 2015. The charity is managed by a group of up to 8 Trustees who are appointed by the existing Trustees. Organisational structure Munchkins has no paid employees, but is run by volunteers of whom there are currently 30 adults on roll, plus teenage helpers at the weekends. Most come regularly every week, providing hands-on help with the ponies. Others perform administrative tasks or help to maintain the facilities. Others help on special occasions, notably the annual summer fayre and other fund-raising activities. The Trustees wish to record once again their grateful thanks for the hard work, dedication and commitment of all our volunteers. Page 4
Munchkins Miniature Shetland Rescue Trustees. Report Statement of trustees, responsibilities The trustees (who are also the directors of Munchkins Miniature Shetland Rescue for the purposes of company law) are responsible for preparing the trustees, report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Stsndard applicable in the UK and Republic of Ireland" Company law requires the trustees to prepare firlancial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the slate of affairs of the charitable company and of the incoming resources and application of resources, including its income and expenditure, of the charitable company 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 e5timate5 that are reasonable and prudent., state whether applicable accounting standards, comprising FRS 102 have been followed, subject to any material departures disclosed and explained in the financial statement5', and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The trustees are responsible for keeping proper accounting records that can disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for laking 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 infomiation included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. The annual report was approved by the trustees of the charity on behalf by.. 2610412025 and signed on its Tcma Chairman and trustee Page 5
Munchkins Miniature Shetland Rescue Independent Examiner's Report to the trustees of Munchkins Miniature Shetland Rescue ('the Company,) I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 August 2024. Responsibilities and basls of report As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act,). Having satisfied myself that the accounts of the Company are not required to be audiled under Part 16 of the 2006 Act and are eligible for independent examination. I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act.). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(51{b) of the 2011 Act. Independent examiner's statement I have completed my examination. I confirm that no matters have come to my attention in connection wtth the examination giving me cause to believe: 1. accounting records were not kept in respect of Munchkins Miniature Shetland Rescue as required by section 386 of the 2006 Act,. or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the accounting requirements of section 396 of the 2008 Act other than any requirement that the accounts give a 'true and fair view which is not a matter considered as part of an independent examination., or 4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities lapplicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)]. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. fvfr S J Carrington FCA For and on behalf of Westcotts (SW) LLP Timberly South Street Axminster Devon EX13 SAD Page 6
Munchkins Miniature Shetland Rescue Statement of Financial Activities for the Year Ended 31 August 2024 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses) Unrestricted funds Restricted funds Total 2024 Total 2023 Note Income and Endowments from: Donations and legacies Charitable activities Other trading activities Investment income 187,764 27,750 215,514 1,044 10,489 1,451 152,883 304 12,165 372 10,489 1,451 Total income 200.748 27.750 228,498 165.724 Expenditure on: Charitable activities (177,785} <5, 590} 1183,3751 (126,727) 126,727) Totsl expenditure Net income (177,785) (5,590) 1183,3751 22,963 22,160 45,123 38,997 Net movement in funds 22.963 22,160 45,123 38,997 Reconciliation of funds Total funds brought foTward 240,249 11.357 251.606 212,609 Total funds carried fomard 17 263,212 33,517 296,729 251,606 All of the charity's activities derive from continuing operations during the above periods. The funds breakdown for 2023 is shown in note 17. Page 7
Munchkins Miniature Shetland Rescue (Registration num ber: CE002670) Balance Sheet as at 31 August 2024 2024 2023 Note Flxed assets Tangible assets 12 420,646 141,467 Current assets Stocks Debtors Cash at bank and in hand 2,500 6,530 95,666 1,351 14,263 98,094 113,708 14 104,696 Creditors: Amounts falling due within one year Net current assets 15 (5,269) (3,569) 99,427 110,139 Total assets less current liabilities 520.073 251,606 Creditors: Arnounts falling due after more than one year 16 (223,344) 296,729 Net assets 251,606 Funds of the charity: Restricted income funds Restricted funds 33,517 11,357 Unrestricted income funds Unrestricted funds 263,212 240,249 Total funds 17 298,729 251.606 For the financial year ending 31 August 2024 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. Directors, responsibilities.. The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476-, and The direclors acknowledge their responsibilities for complying wrth the requirements of the Act with respect lo accounting records and the preparation of accounts. The financial statements on pages 7 to 17 were approved by the trustees, and authorised for issue on 2610412025 and signed on their behalf by-. Tcmarx Chairman and trustee Page 8
Munchkins Miniature Shetland Rescue Notes to the Financial Statements for the Year Ended 31 August 2024 1 Charity status The charity is limited by guarantee, incorporated in England & Wales, and consequently does not have share capital. Each of the trLJStees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation. The address of its registered office is: Morganhayes Farmhouse Southleigh Colyton Devon EX24 6RY 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 othemise stated. 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 Companies Act 2006. Basis of preparation Munchkins Miniature Shetland Rescue meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes. 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 The charity opted to early adopt Bulletin 1 published on 2 February 2Q16 and have therefore not included a cash flow statement in these financial statements. Page 9
Munchkins Miniature Shetland Rescue Notes to the Financial Statements for the Year Ended 31 August 2024 Judgements and key sources of estlmation uncertainty The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. There are no judgements or key sources of estimation uncertainty that have a significant risk of causing a material adjustment to assets and liabilities to be disclosed. 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. Donations and legacies Donations are recognised when Ihe charity has been notified in writing of both the amounl 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. 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 perfomiance 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 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 lo 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. Charitable activities Charitable expenditure comprises those costs incurred by the Charty 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. Page 10
*t. Munchkins Miniature Shetland Rescue Notes to the Financial Statements for the Year Ended 31 August 2024 Support costs Support costs include central functions and have been allocated to activity cost Gategories 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. Governance costs These include the costs attributable to the charity's compliance with constitutional and statutory requirements, including audit, strategic management and trustees meetings and reimbursed expenses. 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 £100.00 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 Freehold property Fixtures and fittings Motor vehicles Field projects Depreciation method and rate 50/0 Straight line 200A straight line 250A reducing balance 10°k straight line Stock Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition. Cash and Gash 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. Page11
Munchkins Miniature Shetland Rescue Notes to the Financial Ststements for the Year Ended 31 August 2024 Borrowings Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, wtth the difference beeen the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge lo the Statement of Financial Activities over the period of the relevant borrowing. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges. Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liabiliiy for at least twelve months after the reporting date. Fund structure Unrestricted income funds are general funds that are available for use at the trustee5 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. 3 Income from donations and legacies Unrestricted funds General Restricted funds Total 2024 Donations 187,764 187,764 Grants receivable 27,750 27,750 27,750 215,514 187,764 Unrestricted funds General Restricted funds Total 2023 Donations 129,843 129,843 Grants receivable 17,750 5,290 23,040 147,593 5,290 152,883 4 Income from charitable activities Unrestrlcted funds General Total 2024 Total 2023 Sale of goodslservices as part of direct charitsble activities 1,044 1,044 304 Page 12
Munchkins Miniature Shetland Rescue Notes to the Financial Statements for the Year Ended 31 August 2024 5 Income from other trading activltles Unrestricted funds General Total funds Total 2023 Fund raising events 10,489 10,489 10,489 12,165 12,165 10,489 6 Investment income Unrestricted funds General Total 2024 Total 2023 Bank interest receivable 1,451 1,451 372 7 Expenditure on charitable activities Unrestricted funds General Restricted funds Total 2024 Note Charitable activities Support costs 102,726 75,059 177,785 102,726 80,649 183.375 5,590 5,590 Unrestricted funds General Restrlcted funds Total 2023 Not& Charitable activities Support costs 61,947 62,882 61.947 64,780 1,898 1,898 124,829 126,727 Page 13
Munchkins Miniature Shetland Rescue Notes to the Financial Statements for the Year Ended 31 August 2024 8 Analysis of governance and support costs Unrestricted funds General Restricted funds Total 2024 Total 2023 Human resources Govemance costs Premises PayPal fees General office Depreciation Sundry costs Motor and travelling costs Fundraising costs Loan interest 5,027 6,311 5,634 238 20,666 24,245 2,188 1,593 6,917 2,240 5,027 6,311 5,634 238 21,756 28,745 2,188 1,593 6,917 2,240 80,649 1.781 3.755 10,043 985 17,533 22,333 1,066 1,320 5,964 1,090 4,500 75,059 5,590 64,780 9 Net incomingloutgoing resources Net incoming resources for the year include.- 2024 2023 Depreciation of fixed assets 28,745 22,333 10 Trustees remuneration and expenses During the year the charity made the following transactions with trustees.. K M Lavery £146 (2023: £33) of expense5 were reimbursed to K M Lavery during the year for travel and feed costs. No trustees, nor any persons connected with them, have received any remuneration from the charity during the year. No trustees have received any other benefits from the charity during the year. 11 Independent examiner's remuneration 2024 2023 Fees payable to the independent examiner for.. Independent examination of the financial statements 621 578 Page 14
Munchkins Miniature Shetland Rescue Notes to the Financial Statements for the Year Ended 31 August 2024 12 Tangible fixed assets Freehold land and buildings Furniture and equipment Motor vehicle5 Field projects Total Cost At 1 September 2023 Additions 94,866 238,615 19,587 14,498 50,862 85.769 251,084 54,811 307,924 At 31 August 2024 333,481 34.085 50,862 140,580 559,008 Depreciation At 1 September 2023 Charge for the year At 31 August 2024 Net book value 25,754 5,002 10.367 5.876 32.874 4,498 40,622 109,617 13,369 28,745 30,756 16,243 37,372 53,991 138,362 At 31 August 2024 302,725 17,842 13,490 86,589 420,646 At 31 August 2023 69,112 9,220 17,988 45,147 141,467 13 Stock 2024 2023 Stocks 2,500 1.351 14 Debtors 2024 2023 Accrued income 6,530 14.263 15 Creditors: amounts falling due within one year 2024 2023 Trade creditors Loans Accruals 297 1,331 3,641 2.494 1,075 5,269 3,569 16 Creditors: amounts falling due after one year 2024 2023 Loans 223,344 Page 15
Munchkins Miniature Shetland Rescue Notes to the Financial Statements for the Year Ended 31 August 2024 17 Funds Balance at 1 September 2023 Balance at 31 August 2024 Incoming resources Resources expended Unrestricted funds General General Funds 240,249 200,748 (175,545) 265,452 Restricted funds Animal Rescue Foundation Hilda Holmes Trust Animal Friends Pet Insurance 5,267 5.000 1,090 4,000 23,750 (411) (4,089) (1,090 (5,590) 8,856 24,661 11,357 27,750 33,517 Total funds 251,606 228,498 (181,135 298,969 Balance at 1 September 2022 Balance at 31 August 2023 Incoming resources Resources expended Unrestricted funds General General Funds 204,644 160,434 {124,829) 240,249 Restricted funds Animal Rescue Foundation Hilda Holmes Trust Animal Friends Pet Insurance 1,678 5,000 1,287 4,000 (411) 5,267 5,000 1,090 11,357 1,290 (1,487) {1,898} 7,965 5,290 Total funds 212,609 165,724 {126.727) 251,606 Animal Friends Pet Insurance - This fund was held specifically to be spent on insurance. Animal Rescue Foundation shelter. This fund was held specifically for capital expenditure on the field Hilda Holmes Trust - This fund is held specifically for capital expenditure towards the new track system. Page 16
Munchkins Miniature Shetland Rescue Notes to the Financial Statements for the Year Ended 31 August 2024 18 Analysis of net assets between funds Unrestricted funds General Total funds at 31 August 2024 Restricted funds Tangible fixed assets Current assets Current liabilities Creditors over 1 year 387,129 104,696 (5,269) (223,344) 33,517 420,646 104.696 (5,269) (223,344) 296.729 Total net assets 263,212 33,517 Unrestricted funds General Totsl funds at 31 August 2023 Restricted funds Tangible fixed assets Current assets Current liabilities 140,200 103,618 (3,569) 240,249 1,267 10,090 141,467 113,708 13,569) Total net assets 11,357 251,606 19 Related party transactions The land that the Charity operates on was owned by Paul and Tammy Marx. During the year this land was purchased in the fomi of a loan from the trustee, the addition can be seen in Freehold additions. At the end of the year there was a balance of £224,675 owed by the Charity to Paul and Tammy. Tammy is a current trustee of the Charity. Page 17