COMPANY REGISTRATION IYUMBER 09596510 GOODHEART ANIMAL SANCTUARIES COMPANY LIMITED BY GUARANTEE FINANCIAL STATEMENTS FOR THE SEVEN MONTHS EIYDED 31 DECEMBER 2020 Charity Number 1162923
GOODHEART ANIMAL SANCTUARIES COMPANY LIMITED BY GUARANTEE FINANCIAL STATEMENTS SEVEN MONTHS ENDED 31 DECEMBER 2020 CONTENrs PAGE Reference and administrative details of the charity, its trustees and advisers Trustees, Report Independent auditors, report Statement of financial activities (incorporating the income and expenditure account) 11 Balance sheet 12 Statement of cashflows 13 Notes to the fll]ancial statements 14
Page I GOODHEART ANIMAL SANCTUARIES COMPANY LIMITED BY GUARANTEE REFERENCE AND ADMINISTRATIVE DETAILS, TRUSTEES AND ADVISERS Registered charity name Goodheart Animal Sanctuaries Charity number 1162923 Company registration number 09596510 Registered oifice The Nickless Farni Milson Kiddernlinster Worcestershire DY14 OBE Directors and trustees J L Cross D Jones D A Walker Company secretary D Jones Independent auditors Haines Watts Chartered Accountants Sterling House 97 Lichfield Street Tamworth Staffordshire B79 7QF
Page 2 GOODHEART ANIMAL SANCTUARIES COMPANY LIMITED BY GUARANTEE TRUSTEES ANNUAL REPORT SEVEN MONTHS ENDED 31 DECEMBER 2020 The Trustees, who are also directors for the purposes of company law, present their report and the audited financial statements of the company for the seven months ended 31 December 2020. The Trustees confirm that the Annual Report and fmancial statements of the charitable company comply with the current statutory requirements, the requirements of the company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective l January 2015) as amended by Update Bulletin l (effective l January 2015). Since the Charity qualifies as small under section 383 the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Directors, Report) Regulations 2013 is not required. REFERENCE AND ADMINISTRATIVE DETAILS Reference and athninistrative details are shown in the schedule of members of the board and professional advisers on page l of the financial statements. OBJECTIVES AND ACTIVITIES Policies and objectives In setting objectives and planning for activities the Trustees have given due consideration to general guidance published by the charity commission relating to public benefit. The Charity has been established for: l. The relief of suffering of animals in need of care and attention, particularly by the provision of facilities for the running of animal sanctuaries; and 2. The conservation, preservation and protection of endangered species of animals. b. Activities for achieving objectives It is the intention of the Charity to establish one or more animal sanctuaries and to also make grants to organisations involved in the conservation, preservation and protection of endangered species of animals. It is also intended to make grants to organisations involved in conservation and providing care for rescued animals.
Page 3 GOODHEART ANIMAL SANCTUIIRIES COMPANY LIMITED BY GUARANTEE TRUSTEES ANNUAL REPORT (c ontinued) SEVEN MONTHS EIWED 31 DECEMBER 2020 ACHIEVEIVIENfs AND PERFORMANCE Review of activities l June 2020 to 31 December 2020 Goodheart Animal Sanetuaries The priorities for this period were the ongoing development of the Goodheart Farn] Animal Sanctuary which is based at Nickless Fann; the adaption of our Education and Outreach Pro.(rramme in light of Covid 19; the development of the charity's small Fundraising and Marketing Team and extending further support for Wiccaweys Rescued Border Collies and Working Sheepdogs. Goodheart Farm Animal Sanctuary The Farn] Animal Sanctuary continued to provide excellent care for the rescued animals who live within its 92 acres. reflecting its verification status under the Global Federation of Sanctuaries. During the period the Sanctuary rescued 18 animals, taking it to near capacity, with 370 animals in total. Two further Animal Care Assistants were recruited and trained. Planning pernlission was granted for the new pig barn design and the work started in December 2020. Plans were drawn up for the construction of a Home for Rescued Hens which will have the capacity for caring for 160 rescued hens at any one time. Goodheart Education and Outreach Goodheart's Education and Outreach Manager adapted the education programme in light of Covid 19 and was able to successfully deliver on the following: Development and delivery of a visitor programme which specifically offers a high-quality, hands-on experience for small groups (up to 6), the adaption of the education provision to have more of a digital focus offering online lessons, collaborating with other likeminded organisations such as Compassion in World Farnling to produce an educational webinar, producing a series of shor¢ educational lectures ivhich were broadcast across our social media channels, begin work on the outdoor education area using funding already secured. Info on outdoor education area can be found here: https://wMv.(yoodheartanimalsanctuaries.com/goodheart-outdoor-education-arLa/ Goodheart Fundraiising Team In August 2020, Goodheart recruited a Fundraising Manager who was joined later by a Marketing Assistant. As a team they have developed fundraising strategies for Goodheart. Appeals were fonnulated; initially as an emergency request for funds to help during the Covid-19 pandemic which met its target of £5,000. The groundwork was laid to develop income streams from corporate parthers. challenges and events; individual giving; community; appeals and grants. In addition the existing membership and adoption programme was reviewed and priority given to redevelopment of the adoption programme which is underway. The creation of engaging posts for Goodheart's social media platfornis saw followers increase to 5,500.
Page 4 GOODHEART ANIMAL SANCTUARIES COMPANY LIMITED BY GUARANTEE TRUSTEES ANNUAL REPORT (contlnued) SEVEN MONTHS ENDED 31 DECEMBER 2020 Wiccaweys Rescued Border Collies and Working Sbeepdogs Goodheart continued to provide financial support to enable Wiccaweys Rescued Border Collies and Working Sheepdogs CIC to manage a care team to help with the rehabilitation and rehoming of the rescued dogs. While rehoming numbers reduced due to Covid-19, Wiccaweys continued to work within the guidelines to rehome dogs and also work with colleagues in Romania and Ireland bringing over dogs in need of homes where possible. Wiccaweys and Goodheart started consultation with ACD Projects to plan the redevelopment of the kemlel facilities which are in need of an upgrade. Initial designs were drawn up and, while work continues on this, a fundraising strategy will be developed to raise tlie necessary funds. Covid-19 Goodheart Animal Sanctuaries has a small core team who work mainly from home. We also have our animal care team at the Farn] Animal Sanctuary and support the care team at Wiccaweys. During the first lockdown and subsequently throughout 2020, Goodheart followed all government guidelines and thankfully did not have any confimed Covid-19. No one in the charity was furloughed as we could not spare any of our &qrers and the core team continued to focus on fundraising. Investment policy and perforniance Surplus cash balances are currently held on deposit at reputable financial institutions to facilitate easy access to manage the liquidity of the Charity. FINANCIAL REVIEW Going concern After making appropriate enquiries the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they have adopted the (Toing concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies. b. Financial management The management team prepare the annual operational budget for the charity and this is approved by the Trustees prior to the commencement of the financial period. The Trustees receive quarterly reports on the financial perforniance of the charity. These include an income and expenditure statement compared to budget. c. Reserves policy The trustees have established a policy whereby the unrestricted funds not committed or invested in tangible fixed assets ("the free resenies") held by the charity should be approximately 6 months basic running costs which equates to approximately £163,000 in general funds. We are currently working towards this target.
Page 5 GOODHEART ANIMAL SANCTUARIES COMPANY LIMITED BY GUARANTEE TRUSTEES ANNUAL REPORT (coniinued) SEVEN MONTHS ENDED 31 DECEMBER 2020 STRUCTURE, GOVERNANCE AND IIqANAGEMENT Constitution The company is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 18 May 2015. Its registered charity number is 1162923. b. Method of appointment or election of Trustees The management of the Charity is the responsibility of the Trustees who are elected and co-opted under the tern]s of the Articles of Association. Risk management The Trustees have assessed the major risks to which the Charity is exposed, in particular those related to the operations and finances of the Charity and are satisfied that the systems and procedures are in place to mitigate its exposure to the major risks. PLANS FOR FUTURE PERIODS The continuing development of the Fundraising team, which will include a 3-5 year strategy, to help the charity become more self-sufficient in ternis of operating costs as well as securing funds for capital projects. The outdoor education area will be completed and a new programme of outdoor learning for primary, secondary and special educational needs and disabilities students will be launched. This will also include animal assisted interventions for small, controlled groups of children and young people. The new Forest School 'After school and holiday club, aiming to get more young children outside and interacting with the natural world, will begin in spring/summer 2021. li At the Farni Animal Sanctuary, the construction of the pig barn will be completed as will the construction of a toilet block for the use of visitors and school groups. The team will work to secure funding for and construct the new hen area and begin fundraising for 2022 construction plans to include the stable and intensive care block (subject to planning perniission). A late summer Open Day is being planned (Covid-19 allowing) and plans for the 2nd Goodheart Gala; originally scheduled for July 2021, will continue with a view to hosting the event early in 2022. At Wiccaweys the plans for the redevelopment of the kennels will be completed and submitted for planning approval.
Page 6 GOODHEART ANIMAL SANCTUIIRIES COMPANY LIMITED BY GUARANTEE TRUSTEES ANNUAL REPORT (contlnued) SEVEN MONTHS ENDED 31 DECEMBER 2020 TRUSTEES, RESPONSIBILrrES STATEMENT The Trustees (who are also directors of Goodheart Animal Sanctuaries 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 Generally Accepted Accounting Practice. Company law requires the Trustees to prepare fmancial statements for each fmancial period. Under company law the Trustees must not approve the fmancial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources li and the application of resources, including the 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 then apply them consistently; Observe the methods and principles of the Charities SORP; li Make judgements and accounting estimates that are reasonable and prudent; Prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charitable company will continue in operation. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the fmancial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. DISCLOSURE OF INFORMATION TO AUDITORS Each of the persons who are Trustees at the time when this Trustees, Report is approved has ConfMed that; so far as that Trustee is aware there is no relevant audit information of which the charitable company's auditors are unaware; and that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit inforniation and to establish that the charitable company's auditors are aware of that information. AUDITORS The auditors, Haines Watts, have indicated their willingness to continue in office. The Delegated Trustees will propose a motion re-appointing the auditors at a meeting of the Trustees. This report was approved by the Trustees on 20 May 2021 and signed on their behalf by; - Director
Page 7 GOODHEART ANIMAL SANCTUARIES COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF GOODHEART ANIMAL SANCTUARIES SEVEN MONTHS ENDED 31 DECEMBER 2020 Opinion We have audited the financial statements of Goodheart Animal Sanctuaries (the 'charitable company,) for the seven months ended 31 December 2020 which comprise the statement of fmancial activities, balance sheeL statement of cashflows and notes to the financial statements, including a summary of significant accounting policies. The fmancial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: give a true and fair view of the state of the charitable company's affairs as at 31 December 2020, and of its incoming resources and application of resources, including its income and expenditure, for the period then ended; Iiave been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Companies Act 2006. 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's responsibilities for the audit of the fmancial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and 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. Conclusions relating to going concern We have nothing to report in respect of the following matters in relation to which the ISAS (UK) require us to report to you where: the trustees, use of the going concern basis of accounting in the preparation of the fmancial statements is not appropriate; or the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. However, not all future events or conditions can be predicted. The COVID-19 viral pandemic is one of the most significant economic events for the UK with unprecedented levels of uncertainty of outcomes. It is therefore difficult to evaluate all of the potential implications on the Charity, its activities and the wider economy.
Page 8 GOODHEART ANIMAL SANCTUARIES COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GOODHEART ANIMAL SANCTUARIES (conlinued) SEVEN MONTHS ENDED 31 DECEMBER 2020 Other inforniation The trustees are responsible for the other inforniation. The other inforn]ation comprises the inforniation included in the trustees, annual repor¢ other than the fmancial statements, and our auditor's report thereon. Our opinion on the fll]ancial statements does not cover the other inforniation and, except to the extent otheThvise explicitly stated in our report, we do not express any forni of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other inforn]ation and, in doing so, consider whether the other inforniation 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 detern]ine whether there is a material misstatement in the financial statements or a material misstatement of the other inforn]ation. If, based on the work we have perforn]e(L we conclude that there is a material misstatement of this other infortnation, we are required to report that fact. We have nothing to report in this regard. Matters on which we are required to report by exception We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion: the inforniation given in the fmancial statements is inconsistent in any material respect with the trustees, report; or the charitable company has not kept adequate accounting records; or the financial statements are not in agreement with the accounting records and returns; or we have not received all the inforn]ation and explanations we require for our audit. Responsibilities of trustees As explained more fully in the trustees, responsibilities statement set out on page 6, the trustees (who are also the directors of the charitable company for the purposes of company law) 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 deterniine 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 charitable company'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 charitable company or to cease operations, or have no realistic alternative but to do so.
Page 9 GOODHEART ANIMAL SANCTUARIES COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GOODHEART ANIMAL SANCTUAIUES (continued) SEVEN MONTHS ENDED 31 DECEMBER 2020 Auditor's responsibilities for the audit of the financial statements We have been appointed as auditor under section 144 of the Charities Act 201 l and report in accordance with regulations made under section 154 of that Act. Our objectives are to obtain reasonable assuTh2nce about whether the financial statements as a whole are free from material misstatemenL 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 infiuence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAS (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perfornl audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumsLqnces, but not for the purpose of expressing an opinion on the effectiveness of the charitable company's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees. Conclude on the appropriateness of the trustees, use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the fmancial statemènts or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the charitable company to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Page 10 GOODHEART ANIMAL SANCTUARIES COMPAIYY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GOODHEART ANIMAL SANCTUARIES (continued) SEVEN MONTHS ENDED 31 DECEMBER 2020 Use of our report This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent pern]itted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company, s trustees li as a body, for our audit work or this report. or for the opinions we have forn]ed. Stephen Butler BA FCA (Senior Statutory Auditor) For and on behalf of Haines Watts Chartered Accountants and Statutory Auditors Sterling House 97 Lichfield Street Tamworth Staffordshire B79 7QF 20 May 2021
Page 11 GOODHEART ANIIIqAL SANCTUARIES COMPANY LIMITED BY GUARANTEE STATEMENT OF FINANCIAL ACTIVITIES ONCORPORATING THE INCOME AND EXPENDITURE ACCOUNT) SEVEN MONTHS ENDED 31 DECEMBER 2020 Unrestricted Restricted Total funds funds funds Dec 2020 Total funds May 2020 Note INCOMING RESOURCES Incoming resources from generating funds: li Investment income Donations and grants Other incoming resources 13 210290 7,481 13 272,415 7,481 16 495,939 7,519 62,125 TOTAL INCOMING RESOURCES 217,784 62,125 279,909 503,474 RESOURCES EXPENDED Charitable Activities Support costs 259262 46291 25,726 284,988 46291 470,365 73,008 TOTAL RESOURCES EXPENDED 305,553 25,726 331279 543,373 NET MOVEMENT IN FUNDS FOR THE PERIOD (87,769) 36J99 (51 J70) (39,899) RECONCILIATION OF FUNDS Total funds brought forward 3?51500 5,500 3J57,000 3,396,899 TOTAL FUNDS CARRIED FORWARD 3263,731 41,899 3J05,630 3,357,000 The Statement of Financial Activities includes all gains and losses in the period and therefore a statement of total recognised gains and losses has not been prepared. All of the above amounts relate to continuing activities. 11 The notes form part of these financial statements.
Page 12 GOODHEART ANIMAL SANCTUARIES COMPANY LIMITED BY GUARANTEE BALANCE SHEET 31 DECEMBER 2020 Dec 2020 May 2020 Note FIXED ASSETS Intangible assets Tangible assets 1237 3219,452 2,968 3,210,225 CURRENT ASSETS Stock Debtors Cash at bank and in hand 500 65,610 40,030 1,000 113,232 44,216 106,140 21,199 158,448 14,641 CREDITORS: amounts falling due within one year 10 NET CURRENT ASSETS 84,941 143,807 TOTAL ASSETS LESS CURREiYf LIABILITIES 3,305,630 3,357,000 NET ASSETS 3J05,630 3,357,000 Restricted funds Unrestricted funds 11 12 41,899 3263,731 5,500 3,351,500 TOTAL FUNDS 3J05,630 3,357,000 These financial statements were approved by the Trustees and authorised for issue on the 20 May 2021 and are signed on their behalf by: er - Director Company Registration Number: 09596510 The notes forn] part of these financial statements.
Page 13 GOODHEART ANINIAL SANCTUARIES COMPANY LIMITED BY GUARANTEE STATEMENT OF CASH FLOWS 31 DECEMBER 2020 Dec 2020 May 2020 Note CASH FLOWS FROM OPERAT]NG ACTIVITIES Net cash provided by operating activities 13 35,842 15,802 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of tangible fixed assets Purchase of intangible assets NET CASH USED IN INVESTING ACTIVITIES (40,028) (36,753) (40,028) (36,753) CHANGE IN CASH AND CASH EQUIVALENTS IN THE PERIOD (4,186) (20,951) Cash and cash equivalents brought forward CASH AND CASH EQUIVALENTS CARRIED FORWARD 44216 65,167 40,030 44,216 RELATING TO: Cash at bank and in hand 40,030 44,216 The notes forni part of these financial statements.
Page 14 GOODHEART ANIMAL SANCTUARIES COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS SEVEN MONTHS ENDED 31 DECEMBER 2020 ACCOUNTING POLICIES Basis of accounting The fmancial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS102) '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 (FRS102) (effective l January 2015),, Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland, and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. Critical accounting judgements and key sources of estimation uncertaiinty In the application of the company's accounting policies, which are described in this note, Trnstees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period. Company status The charity is a company limited by guarantee. The members of the company are the trustees named on the members of the board page. In the event of the charity being wound up the liability in respect of the guarantee is limited to £1 per member of the charity. FuDd accounting General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. Designated funds comprise of unrestricted funds that have been set aside by the trustees for particular purposes. Restricted funds are fimds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each fund is set out in the notes to the financial statements. Income All incoming resources are included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. Income tax recoverable in relations to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Investment income is included where receivable.
Page 15 GOODHEART ANIMAL SANCTUARIES COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS SEVEN MONTHS ENDED 31 DECEMBER 2020 ACCOUNTING POLICIES (continued) Expenditure Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third paty, it is probable that a transfer that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity are apportioned between those activities on a basis consistent with the use of resources. Grants payable are charged in the year when the offer is made except in those cases where the offer 11 is conditional, such as grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment but not accrued as expenditure. All expenditure is inclusive of irrecoverable VAT. Amortisation Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows: Branding 25 % on a straight line basis Fixed assets and depreciation All fixed assets are initially recorded at cost. A review for impairn]ent of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. li li Impairnient losses are recognised in the Statement of Financial Activities incorporating Income and Expenditure Account. Tangible fixed assets are carried at cost, net of depreciation and any provision for impairment. Depreciation is not charged on freehold land. Depreciation is provided at rates to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following basis: Freehold property Buildings improvements Equipment Vehicles 2 % on a straight line basis. Land is not depreciated. 2 % on a straight line basis 25 % on a straight line basis 25 % on a straight line basis
Page 16 GOODHEART ANIMAL SANCTUARIES COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS SEVEN MONTHS ENDED 31 DECEMBER 2020 ACCOUNTING POLICIES (contlnued) Debtors Trade and other debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid. Cash at bank and in hand Cash at bank and in hand includes cash and short terni highly liquid investments with a short rnaturity of three months or less from the date of acquisition or opening of the deposit or similar li account. Liabilities Liabilities are reCOlSed when there is an obligation at the Balance Sheet date as the result of a past even( it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Financial instruments The Charity only has financial assets and financial liabilities of a kind that qualify as basic fmancial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. INVESTMENT INCOME Dec 2020 May 2020 Interest received 13 16 OTHER INCOMING RESOURCES Dec 2020 May 2020 Rural payments agency Miscellaneous income 7,446 35 7,459 60 7,481 7,519
Page 17 GOODHEART ANIMAL SANCTUARIES COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS SEVEN MONTHS ENDED 31 DECEMBER 2020 ANALYSIS OF TOTAL RESOURCES EXPENDED Charitable activities Support costs Total funds May 2020 Dec 2020 Cost of raising funds 34,054 3,288 37J42 60.538 Support to other animal sanctuaries and charities 77J39 6,436 83,775 156,313 Support Goodheart Anllnal Sanctuary 173,595 36,567 210,162 326,522 284,988 46291 331279 543,373 Support to other sanctuaries comprise various contributions to the Farm Animal Sanctuary and to Wiccaweys Rescued Border Collies and Working Sheepdogs CIC. In addition to these monetary contributions both the Fann Animal Sanctuary and Wiccaweys Rescued Border Collies and Working Sheepdogs CIC also benefit from the occupancy of land and buildings owned by the charity on a rent- free basis. 4a. SUPPORT COSTS ALLOCATION Total May 2020 Facilities and estates Management Total Dec 2020 Costs of raising funds Charitable activities - Relief of suffering of animals Support to other animal sanctuaries and charities Support Goodheart Animal Sanctuary 3,288 3288 8,144 6,436 14,445 6,436 9,726 36,567 55,138 22,122 22,122 24,169 46291 73,008 All indirect support costs have been allocated into our main areas of expenditure as required by Charities SORP FRS 102. This gives an allocation of our resources as follows: Costs of generating funds Charitable activities - support to other sanctuaries 27.14% Charitable activities- support to Goodheart Animal Sanctuary 60.91 % Facilities and estates are primarily allocated on a usage basis whilst management costs are allocated on the basis of direct resources spent.
Page 18 GOODHEART ANIMAL SANCTUARIES COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS SEVEN MONTHS ENDED 31 DECEMBER 2020 NET MOVEMENT IN FUNDS FOR THE PERIOD This is stated after charging: Dee 2020 May 2020 Auditors, remuneration Amortisation Depreciation 4200 1,731 30,801 4,200 2,968 51,912 STAFF COSTS AND EMOLUMENTS Total staff costs were as follows: Dec 2020 May 2020 Wages and salaries Social security costs Other pension costs 91,988 4J25 1,963 123,621 7,911 2,580 98276 134.112 Particulars of employees: The average number of employees during the period was as follows: Dec 2020 May 2020 Sanctuary staff No employee received remuneration of more than £60,000 pro rata during the period (May 2020 - Nil). INTANGIBLE FLXED ASSETS Total COST At l June 2020 Additions 11,872 At 31 December 2020 11,872 DEPRECIATION At l June 2020 Charge for the period At 31 December 2020 8,904 1,731 10,635 NET BOOK VALUE At 31 December 2020 1,237 At 31 May 2020 2,968
Page 19 GOODHEART ANIMAL SANCTUARIES COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS SEVEN MONTHSENDED 31 DECEMBER 2020 TANGIBLE FIXED ASSETS Land and Building buildings improvements Equipment Vehicles Total COST At l June 2020 Additions Disposals 2,992J80 333,638 39,658 44200 370 14,934 3J85,152 40,028 At 31 December 2020 2,992J80 373296 44,570 14,934 3,425,180 DEPRECIATION At l June 2020 Charge for the period On disposals At 31 December 2020 112216 17,766 20277 4J57 31232 6,500 11202 2,178 174,927 30,801 129,982 24,634 37,732 13J80 205,728 NET BOOK VALUE At 31 December 2020 2,862J98 348,662 6,838 1554 3,219,452 At 31 May 2020 2,880,164 313,361 12,968 3,732 3,210,225 DEBTORS Dec 2020 May 2020 Trade debtors Other debtors Prepayments 125 102,306 10,801 58,107 7503 65,610 113.232 10. CREDITORS: amounts falling due within one year Dec 2020 May 2020 Trade creditors PAYF. and social security Accruals 8J51 3,955 8,893 5,450 2,837 6,354 21,199 14,641
Page 20 GOODHEART ANIMAL SANCTUARIES COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MAY 2020 11. RECONCILIATION OF RESTIUCTED FUNDS Balance at l Jun 2020 Incoming resources Outgoing resources Balance at 31 Dec 2020 Beryl Evetts & Robert Luff Animal Welfare Trust Roger & Douglas Turner Charitable Trust Moondance Foundation National Lottery L E Andrews Sylvia Waddilove Foundation Olsen Animal Trust 2,500 (2500) 3,000 (3,000) (12226) 33,150 975 5,000 20,924 975 (5,000) 3,000 20,000 (3,000) 20,000 5500 62,125 (25,726) 41,899 12. RECONCILIATION OF UNRESTRICTED FUNDS Balance at l Jun 2020 Incoming resources Outgoing resources Balance at 31 Dec 2020 General Funds 3J51,500 217,784 (305,553) 3,263,731 13. CASH GENERATED FROM OPERATIONS Dec 2020 May 2020 Net movement in funds for the period (51?70) (39,899) Adjustments for: Depreciation of tangible assets Amortisation of intangible assets 30,801 1,731 51,912 2,968 (18,838) 14,981 Movements in working capital: Decrease/(Increase) in stock Decrease/(Increase) in debtors (Decrease)nncrease in creditors 500 47,622 6,558 903 7,989 (8,071) Cash generate(V(used in) from operations 35,842 15,802
Page 21 GOODHEART ANIMAL SANCTUARIES COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MAY 2020 14. RELATED PARTY TRANSACTIONS During the seven months ended 31 December 2020 the charity received donations amounting to £113,126 (May 2020: £394,502) from the Trustees, excluding gift aid recoveries.