## **Trustees’ Annual Report for the period**
**From** 1[st] June 2020 **Period start date To** 31[st] May 2021 **Period end date**
**Charity name:** The Hugs Foundation
## **Charity registration number:** 1175633
## **Objectives and Activities**
||SORP reference||
|---|---|---|
|Summary of the purposes of
the charity as set out in its
governing document|Para 1.17|The Hugs Foundation is a horse rescue
centre that also provides well-being support
to children, young people, the elderly,
serving military personnel and veterans.
We rescue, rehabilitate and rehome
mistreated, sick, unwanted and abandoned
horses and ponies. Situated in a unique,
nurturing, safe environment, we provide for
a range of human well-being needs too,
including; social, emotional, physical and
mental health support, learning and
developmental needs, special educational
needs and disabilities (SEND), social
isolation, reengaging with education, school
transitions, transitions from military to
civilian life, self-harm and those at risk of
suicide.
Our rescues each have their own
rehabilitation plan and many work
alongside our service users, where they
can both benefit and grow from spending
time with each other, making a positive
difference to both lives.
Our multiple aims and objectives include:
•
the rescue, rehabilitation and re-homing
of unwanted, sick, mistreated and
abandoned horses and ponies.
•
to promote humane behaviours towards
animals and educate the public in
positive animal welfare.
•
to work alongside other rescues and
organisations to make as big a
difference as possible to animal welfare.|
|||•
to improve children and young people’s
social, emotional, physical and mental
health and well-being through on-site
interventions.
•
to decrease loneliness and increase
social inclusion and hope amongst the
elderly through visits to care homes.
•
to improve the social, emotional,
physical and mental health and well-
being of serving military personnel and
veterans.|
|---|---|---|
|Summary of the main
activities in relation to those
purposes for the public
benefit, in particular, the
activities, projects or
services identified in the
accounts.|Para 1.17 and
1.19|Our main charitable activities are; to
provide a safe, nurturing and enriching
environment for our animal rescues,
enabling us to rehabilitate and rehome as
many as possible and to provide well-being
support to those in need. We do this by:
•
working alongside other rescues and
organisations, such as the National
Equine Welfare Council (NEWC), World
Horse Welfare, the Mare & Foal
Sanctuary, the RSPCA, the police and
local councils, to rescue animals in
need.
•
rehabilitating rescue horses/ponies
through individual programmes using
ethical and empathic training techniques
to create positive experiences for our
rescues, enabling them to trust humans
and build their confidence.
•
finding the right match for our rescues
and their forever home.
•
attending events and open days to raise
awareness of the charity, educate the
public in animal welfare and human
well-being and promote positive animal
welfare.
•
providing well-being support through on-
site interventions to children, young
people, serving military personnel and
veterans. These interventions are set up
as a course of six sessions, with the
option to extend if needed, and have
been shaped by people with lived
experiences and experts in well-being,
learning and development. We provide
a unique mix of nature based
interventions together with mentoring
and workshops that can include; animal
assisted interventions, nature activities,
therapeutic learning, ecotherapy,|
|||teambuilding, arts and crafts, forest
based activities and practical skills,
such as horticulture.
•
providing well-being visits for the
elderly, with our rescue animals, for
those that are unable to leave their
accommodation (e.g. care homes).
These visits bring the residents
something different to their usual routine
and something to look forward to.
Residents leave their rooms and
congregate in the social areas,
decreasing loneliness and increasing
social inclusion, happiness and hope.
For those that cannot leave their rooms,
our animals (usually Dude our super
star rescue), go to them. The smiles this
brings to people shows just how positive
the impact is on their well-being and
Dude is always keen to see the
residents. We constantly monitor our
animal’s welfare to ensure they are
always happy and healthy.
There have been 7 ponies returned to the
facility during this period, due to changes in
owner circumstances or the standard of
care not being delivered to the satisfaction
of The Hugs Foundation upon inspection.
We continue to provide care for those
returned to the Foundation and look to
rehome them again.
The charity is fully insured. All staff and
volunteers are DBS checked, a full
safeguarding policy and procedures are in
place and updated regularly, as are our
other policies, such as equal opportunities.
Volunteers provide vital resource to the
charity through activities such as mucking
out, grooming and other essential yard
tasks, providing benefit to both visitor and
charity, although this has greatly reduced
due to the coronavirus pandemic and
lockdown restrictions.
A monthly newsletter continues to be
produced and sent to our supporters (who
have signed up in accordance with GDPR)
to keep them up to date with the activities
of the charity, promote our events and to
encourage donor engagement.|
|---|---|---|
|Statement confirming
whether the trustees have
had regard to the guidance
issued by the Charity
Commission on public
benefit|Para 1.18|The trustees are aware of the guidance
issued by the Charities Commission on
public benefit with regard to the need for
them to exercise their powers and duties
for the benefit of the public. Every trustee|
has complied with their duty to have due regard on public benefit.
## **Additional information (optional)** You may choose to include further statements where relevant about:
||SORP reference||
|---|---|---|
|Policy on grant making|Para 1.38||
|Policy on social investment
including program related
investment|Para 1.38||
|Contribution made by
volunteers|Para 1.38|Our volunteers are an essential asset to
the charity. Volunteers perform
important tasks such as mucking out,
grooming and essential groundwork that
keeps the land a safe environment for the
animals to enjoy. All our volunteers are
taken through a volunteer induction
programme and DBS checked. However,
we have had reduced volunteers this
charity year, due to the pandemic and
lockdown restrictions.|
|Other|||
## **Achievements and Performance**
||SORP reference||
|---|---|---|
|Summary of the main
achievements of the charity,
identifying the difference the
charity’s work has made to
the circumstances of its
beneficiaries and any wider
benefits to society as a
whole.|Para 1.20|This year has been incredibly challenging,
due to the coronavirus pandemic. However
the charity has been innovative and flexible
and despite the difficulties, manged to
achieve great things including:
•
Rescued 25 equines in this year from
situations of sickness, mistreatment
and/or abandonment (a total of 121
horses and ponies and over 160
animals in total since opening in 2017).
•
Rehomed 36 of those rehabilitated
horses/ponies (a total of 75 since
opening in 2017).
•
Provided 228 hours of mental well-being
support to 38 individual children and
young people (a total of 5228 hours and
488 individuals supported since opening
in 2017).|
• Eight individuals completed the 7 item Warwick Edinburgh Mental Well-Being Scale (WEMWBS) with 88% recording a meaningful positive change on their well-being. We have also gathered more case studies evidencing the positive impact our support has on individuals. • Launched a veterans well-being programme after successfully gaining funding from The National Lottery, Awards for All. This started in May 2021. • Provided volunteering opportunities to 2 people. This was a hugely reduced capacity due to decreased staffing and the pandemic. • Provided work experience opportunities for 2 people. Again, this was a hugely reduced capacity due to decreased staffing and the pandemic. • The charity was unable to undergo any care home visits due to the pandemic but have kept in contact with service users virtually and are hoping to offer this service again in Autumn 2021. However, over the Christmas period, the charity ran a community day where care homes were visited from the outside and the ponies were dressed for Christmas celebrations and walked through Bodmin town centre to bring a smile to the local community during difficult times. • Launched ‘A Daily Hug’ project via Facebook. This involved going live or posting a pre-recorded video on Facebook to help our service users and supporter’s well-being during the pandemic. This was so popular that it received four rounds of funding including grants from the mental health charity, Mind and Cornwall Community Foundation. In just one month, the project reached over 84,900 people with over 11,900 engagements. • Outcomes from a survey for ‘A Daily Hug’, conducted by the charity Mind, reported that 100% would recommend our service to a friend or family member experiencing problems with their mental health and well-being. 72% of those - agreed their well being had improved
||whilst the remaining 28% strongly|
|---|---|
||agreed.|
|•|Launched a YouTube channel and|
||become more active on social media|
||platforms so our service users and|
||supporters could stay in touch with what|
||the charity was up to.|
|•|Became a member of the National|
||Equine Welfare Council (NEWC) and|
||continued to build relationships with|
||similar equine charities including World|
||Horse Welfare, the Mare & Foal|
||Sanctuary and the RSPCA.|
|•|Built relationships and partnerships for|
||our well-being provisions including|
||partnering with The Veterans Farm-Able|
||Foundation charity for our veteran’s|
||well-being programme and for our youth|
||well-being provision; Sowenna, a local|
||NHS unit run by Cornwall NHS|
||Foundation Trust, other departments in|
||the NHS, Children and Adolescent|
||Mental Health Services (CAMHS),|
||additional schools, both primary and|
||secondary, children in care units, social|
||workers and social prescribers.|
|•|Continued to build and establish a|
||relationship with the local community|
||and work in collaboration with|
||organisations such as local schools,|
||social services and mental health|
||provisions.|
|•|Rescued a variety of animals to add to|
||Hugs provision, including 3 feral cats, a|
||piglet and more rescue chickens.|
|•|Established a fundraising strategy and|
||business plan to enable the charity to|
||recover and grow after the pandemic.|
||Income streams have been diversified|
||and include: applications to trusts and|
||grants, increasing donations via direct|
||debits and individual giving, legacies|
||and corporate sponsorships. From|
||August 2019 to 31st May 2020, the|
||charity received £53,750 from trusts and|
||grant funding. From June 2020 to 31st|
||of May 2021 this increased to £94,981.|
||Regular donors have increased and|
||‘Sponsor an Animal’ gifts for resident|
||animals has proved popular.|
|•|Continued to work with professionals,|
||including a Health and Safety|
||consultant, to ensure we are doing the|
|---|---|
||best we can to support our charity and|
||beneficiaries and keep all safe.|
|•|Started to create a track system for|
||those rescues who are overweight or|
||suffering from or susceptible to laminitis.|
|•|Alongside normal maintenance, the|
||charity has provided extra care to help|
||the land recover from the harsh and wet|
||winter and have re-seeded half the|
||grazing, with the other half planned for|
||the next charity year.|
|•|Three large field shelters have been|
||added this year, kindly funded by|
||Network for Animals. This has made a|
||huge difference to our rescues, enabling|
||them to shelter from the elements.|
|A|future plan has been established for as|
|follows:||
|•|Continue to adapt and implement our|
||fundraising strategy, ensuring we are|
||able to adjust where needed when the|
||unexpected comes along e.g.|
||coronavirus pandemic.|
|•|Stabilise and then grow the charity to|
||meet demand for both our animal|
||rescue and human well-being support.|
|•|Increase capacity for on-site well-being|
||support to meet demand. Continue to|
||train staff and liaise with other|
||professionals in the sector to ensure the|
||referrals being received (which are more|
||complex with a multitude of needs) are|
||getting the best support than can.|
|•|Continue to research different methods|
||of Equine Assisted Interventions and|
||Ecotherapy to help shape the services|
||The Hugs Foundation provides.|
|•|Develop services to corporate groups|
||for team building activities. This will|
||raise awareness for the charity, build|
||corporate relationships and aim to|
||increase fundraising opportunities.|
|•|Evaluate veterans project, adjust|
||accordingly then apply for funding to run|
||the next programme.|
|•|Increase volunteer and work experience|
||numbers post pandemic.|
**Additional information (optional)** You may choose to include further statements where relevant about:
|Achievements against
objectives set|Para 1.41||
|---|---|---|
|Performance of fundraising
activities against objectives
set|Para 1.41|At the end of 2019, the charity recruited its
first fundraiser to devise a business
development strategy to include service
development, funding strategy and
sustainability milestones and help with
administration and operation of the charity.
One main corporate sponsor has provided
the largest percentage of our funding since
our inception. The pandemic has hugely
highlighted the need to be less reliant on
one sponsor, due to them being unable to
sustain their pre pandemic levels of
support. Post pandemic, the charity needs
to stabilise and become sustainable before
it can expand further to ensure the charity’s
long term survival. Hence, a change in the
way the charity is funded is much needed
and so a phased reduction has started from
the main corporate sponsor, with £120,000
committed for the next charity year and a
steady decrease over the following 3 years.
This year the targets set for the fundraising
have been very positive, especially
considering the challenges of the
pandemic. The charity has managed to
raise nearly £100,000 in trust and grant
funding and individual giving has increased.
Funding streams have been diversified to
include: individual giving, memberships,
legacies, activities within the local
community and trust and grant funding.
Legacies and corporate sponsorship
income streams are being explored and the
hope is to build this income as the charity
becomes better known in the community.
Moving forwards, there is a flexible and
diverse fundraising plan in place to help the
charity recover and start to grow once
more.|
|Investment performance
against objectives|Para 1.41||
|Other|||
## **Financial Review**
|**Financial Review**|||
|---|---|---|
|Review of the charity’s
financial position at the end
of the period|Para 1.21|Income and expenditure have decreased
this year due to the impact of the
coronavirus pandemic.
During the year receipts of £266,379 were
received from donations, trust and grants,
sponsorships, rehoming fees and service
charges. Of this, £130,605 was received
from a corporate sponsorship partner that
provided donations to set up and establish
the charity through support with staffing
and running costs. The partnership will
continue to provide support for the charity
with an aim to becoming self-funding in the
long term. £94,981 was raised in trust and
grant funding, a large increase on the
previous year. A fundraising strategy has
been put in place for the next few years, to
reduce the donation amount and reliance
on the corporate donor and diversify
income streams, working towards self-
sustainability.|
|Statement explaining the
policy for holding reserves
stating why they are held|Para 1.22|The Hugs Foundation is a young,
registered charity and therefore significant
setup and operational costs have been
incurred, thus the ability to create cash
reserves has not been possible. In addition
to this, the coronavirus pandemic, made it
financially impossible to build or retain any
reserve funding. The Hugs Foundation also
believes that monies received should be
spent in accordance with the charity
mission and not held long term in a bank
account. There were very little reserves
during the pandemic, which caused
financial strain on the charity, however, the
diversity and flexibility of the Trustees and
fundraising strategy in place, ensured the
charity was successful with emergency
funding and survived.
The next charity year, The Hugs
Foundation has an agreement with its
corporate sponsor, to receive £10,000 per
month unrestricted funding. Therefore, the
reserves policy will be to operate with
minimal reserves whilst the charity
stabilises and carries out its fundraising
strategy. The corporate sponsor
commitment, along with the fundraising
strategy in place to increase income
diversity, gives the Trustees confidence
that The Hugs Foundation has the certainty
and resilience it requires to deliver its
charitable objectives and survive long term.|
|||Any cash funds held, either restricted or
unrestricted, will be carried over to continue
to support the work of the charity into the
next financial year. Restricted funding
carried over, (e.g., the charity could not run
interventions during the pandemic so the
funding could not be spent as intended),
will be spent in accordance with the
individual application. For any that are
taking longer to spend than anticipated, the
relevant grant or trust organisation(s) will
be notified, and a plan agreed to spend the
reserves moving forward.
From 2022 and depending on the outcome
of the financial strategy and financial
climate, The Hugs Foundation aim to
increase its level of unrestricted funds over
the following years, in order to ensure the
underlying financial resilience of the charity
and to provide designated funds for specific
projects. The aim would be for a minimum
level of free reserves that The Hugs
Foundation will hold in unrestricted funds,
excluding fixed assets, to cover three to six
months of core running costs plus any
potential liabilities in the event of the Hugs
Foundation having to cease its activities.
The reserves policy will be reviewed
annually by The Hugs Foundation
Trustees.|
|---|---|---|
|Amount of reserves held|Para 1.22|Total reserves held on 31 May 2021 were
£72,244, split as unrestricted funds of
£42,815 and restricted funds of £29,429.
£5,539 of the unrestricted funds balance is
held as cash.|
|Reasons for holding zero
reserves|Para 1.22|See above reserves policy.|
|Details of fund materially in
deficit|Para 1.24||
|Explanation of any
uncertainties about the
charity continuing as a going
concern|Para 1.23|The coronavirus pandemic has had a
negative impact on the charity’s income
since March 2020. The charity has been
unable to run fundraising events, school
holiday activities, care home visits and well-
being interventions. In November 2020, the
charity was able to re-open for its on-site
well-being support, but a few weeks later,
the country went back into lockdown and so
interventions were once again unable to
run. On-site interventions re-opened again
from April 2021, although these are being
run at lower capacity due to staffing levels
and Government restrictions. However the
charity has been successful in applications
for additional grant funding which has been
received in 2020-2021. Demand for horse
rescues and rehoming is continuing to rise
and well-being service referrals have|
increased by 50% and so the outlook for The Hugs Foundation is looking optimistic.
|**Additional information (optional)**
You may choose to include further statements where relevant about:|**Additional information (optional)**
You may choose to include further statements where relevant about:|**Additional information (optional)**
You may choose to include further statements where relevant about:|
|---|---|---|
|The charity’s principal
sources of funds (including
any fundraising)|Para 1.47|One main corporate sponsor has provided
the largest percentage of our funding since
our inception. The pandemic has hugely
highlighted the need to be less reliant on
one sponsor, due to them being unable to
sustain their pre pandemic levels of
support. Post pandemic, the charity needs
to stabilise and become sustainable before
it can expand further to ensure the charity’s
long term survival. Hence, a change in the
way the charity is funded is much needed
and so a phased reduction has started from
the main corporate sponsor, with £120,000
committed for the next charity year and a
steady decrease over the next 3 years.
2020 to 2021 charity year’s income was
split between our main corporate sponsor
(reduced to 49% from 65% in the previous
charity year), with the additional income
being achieved from a diverse range of
income streams including:
•
trust and grant funding
•
individual giving, both one off donations
and regular monthly donations
•
memberships (Sponsor a Rescue)
•
service charges (well-being support)
•
animal rescue rehoming fees
•
livery
•
tack sale donations
•
Christmas calendar donations and
sponsorship
•
corporate sponsorships and donations
Moving forwards, the charity’s fundraising
plan is to continue to grow these diversified
income streams and become less reliant on
one main corporate sponsor.|
|Investment policy and
objectives including any
social investment policy
adopted|Para 1.46||
|A description of the principal
risks facing the charity|Para 1.46|The trustees have assessed the major risks
to which the charity is exposed, including
the recruitment and retention of staff and
major incidents which may affect the
running of the charity e.g. coronavirus
pandemic, and are satisfied that the
systems in place (risk register etc.) will help|
|**Additional information (optional)**
You may choose to include further statements where relevant about:|**Additional information (optional)**
You may choose to include further statements where relevant about:|**Additional information (optional)**
You may choose to include further statements where relevant about:|
|---|---|---|
|The charity’s principal
sources of funds (including
any fundraising)|Para 1.47|One main corporate sponsor has provided
the largest percentage of our funding since
our inception. The pandemic has hugely
highlighted the need to be less reliant on
one sponsor, due to them being unable to
sustain their pre pandemic levels of
support. Post pandemic, the charity needs
to stabilise and become sustainable before
it can expand further to ensure the charity’s
long term survival. Hence, a change in the
way the charity is funded is much needed
and so a phased reduction has started from
the main corporate sponsor, with £120,000
committed for the next charity year and a
steady decrease over the next 3 years.
2020 to 2021 charity year’s income was
split between our main corporate sponsor
(reduced to 49% from 65% in the previous
charity year), with the additional income
being achieved from a diverse range of
income streams including:
•
trust and grant funding
•
individual giving, both one off donations
and regular monthly donations
•
memberships (Sponsor a Rescue)
•
service charges (well-being support)
•
animal rescue rehoming fees
•
livery
•
tack sale donations
•
Christmas calendar donations and
sponsorship
•
corporate sponsorships and donations
Moving forwards, the charity’s fundraising
plan is to continue to grow these diversified
income streams and become less reliant on
one main corporate sponsor.|
|Investment policy and
objectives including any
social investment policy
adopted|Para 1.46||
|A description of the principal
risks facing the charity|Para 1.46|The trustees have assessed the major risks
to which the charity is exposed, including
the recruitment and retention of staff and
major incidents which may affect the
running of the charity e.g. coronavirus
pandemic, and are satisfied that the
systems in place (risk register etc.) will help|
to mitigate the risk or enable it to be dealt with in a timely, efficient manner. Other
## **Structure, Governance and Management**
|Description of charity’s
trusts:||N/A|
|---|---|---|
|Type of governing document
(trust deed, royal charter)|
Para 1.25|Constitution of a Charitable Incorporated
Organisation|
|How is the charity
constituted?
(e.g unincorporated
association, CIO)|Para 1.25|Charitable Incorporated Organisation|
|Trustee selection methods
including details of any
constitutional provisions e.g.
election to post or name of
any person or body entitled
to appoint one or more
trustees|Para 1.25|Trustees can be selected in various ways
including; approaching the charity
themselves through CV or application or
nomination by existing Trustees. Current
Trustees will consider potential new
Trustees who have skills which will help the
charity e.g. animal welfare knowledge,
children’s mental health, safeguarding,
fundraising and charity management.
Applications/nominations are brought to
Trustee meeting to discuss. They are
appointed upon approval by majority vote,
familiarised with the day to day running of
the charity and briefed on the governance
and their responsibilities.|
## **Additional information (optional)** You may choose to include further statements where relevant about:
||||
|---|---|---|
|Policies and procedures
adopted for the induction
and training of trustees|Para 1.51||
|The charity’s organisational
structure and any wider
network with which the
charity works|Para 1.51||
|Relationship with any related
parties|Para 1.51||
|Other|||
## **Reference and Administrative details**
|Charity name|The Hugs Foundation|
|---|---|
|Other name the charity uses|N/A|
|Registered charity number|1175633|
|Charity’s principal address|Higher Whitley Farm
Helland Road
Bodmin
Cornwall
PL31 2NT|
|||
## **Names of the charity trustees who manage the charity**
|1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20|**Trustee name**|**Office (if any)**|**Dates acted if not for whole**
**year **|**Name of person (or body) entitled**
**to appoint trustee (ifany)**|
|---|---|---|---|---|
||Andrew Frederick
Bowden||||
||TracyJayne Lewis||||
||Claire Briggs||||
||David Peter Sell||||
||Paul Jonathan
Dransfield||Appointed on 18th
January2021||
||||||
||||||
||||||
||||||
||||||
||||||
||||||
||||||
||||||
||||||
||||||
||||||
||||||
||||||
||||||
## – Corporate trustees names of the directors at the date the report was approved
## **Director name**
Name of trustees holding title to property belonging to the charity
**Trustee name Dates acted if not for whole year**
## **Funds held as custodian trustees on behalf of others**
Description of the assets held in this capacity
Name and objects of the charity on whose behalf the assets are held and how this falls within the custodian charity’s objects Details of arrangements for safe custody and segregation of such assets from the charity’s own assets
## **Additional information (optional)**
## **Names and addresses of advisers (Optional information)**
|**Names and addresses of advisers (Optional information)**|**Names and addresses of advisers (Optional information)**|**Names and addresses of advisers (Optional information)**|
|---|---|---|
|**Type of**
**adviser**
**Name**
**Address**|||
|**Solicitor**|Stephens Scown|1 High Cross Street, St Austell, Cornwall, PL25 4AB|
|**Accountant**|AAS Accountants Ltd|Tithe House, 15 Dukes Ride, Crowthrone, RG45 6LZ|
||||
||||
**Name of chief executive or names of senior staff members (Optional information)**
Andrew Bowden - Chairman
## **Exemptions from disclosure**
Reason for non-disclosure of key personnel details
## **Other optional information**
## **Declarations**
**The trustees declare that they have approved the trustees’ report above.**
**Signed on behalf of the charity’s trustees**
|**Signature(s)**
**Full name(s)**
**Position (eg Secretary,**
**Chair, etc)**
**Date**|||
|---|---|---|
||Andrew Frederick Bowden||
||
Chair||
||20/09/2021||
||20/09/2021||
||Charity Name
TheHugsFoundation||1175633||
|---|---|---|---|---|
||Annual accounts for the period||||
||Period start date
1 June 2020
To||31 May2021||
|**Section A**|**Statement of financial activities**||||
||Charity Name|TheHugsFoundation|TheHugsFoundation|TheHugsFoundation|1175633||
|---|---|---|---|---|---|---|
||Annual accounts for the period||||||
||Period start date||1 June 2020|To|31 May2021||
||||||||
|**Section A**|**Statement of financial activities**||||||
|**Recommended categories by**
**activity**
**Incoming resources (Note 3)**
**Income and endowments from:**
Donations and legacies
Charitable activities
Other trading activities
**Resources expended (Note 5)**
**Expenditure on:**
Raising funds
Charitable activities
Transfers
**_Reconciliation of funds:_**
**_Total_**
Total funds brought forward
**_Total funds carried forward_**
**_Total_**
**Net income/(expenditure) before transfers**
**Net income/(expenditure)**|||**Unrestricted**
**funds**
**Restricted**
**income**
**funds**
**Total funds**
**Prior year**
**funds**
**£**
**£**
**£**
**£**||||
||||161,874|-|161,874|_288,108_|
||||8,655|94,481|103,136|_97,942_|
||||1,369|-|1,369|_395_|
||||**171,898**|**94,481**|**266,379**|**_386,445_**|
||||||||
||||22,590|-|22,590|_28,230_|
||||157,037|75,077|232,114|_310,733_|
||||**179,627**|**75,077**|**254,704**|**_338,964_**|
||||||||
||||7,729
-|19,404|11,675|_47,481_|
||||6,000|6,000
-|-|_-_|
||||1,729
-|13,404|11,675|_47,481_|
||||||||
||||44,544|16,025|60,569|_13,088_|
||||**42,815**|**29,429**|**72,244**|**60,569**|
**Section B Balance sheet**
**Fixed assets Tangible assets (Note 9)** _**Total fixed assets**_ **Current assets Debtors (Note 10) Cash at bank and in hand (Note 12)** _**Total current assets**_ **Creditors: amounts falling due within one year (Note 11)** _**Net current assets/(liabilities) Total net assets or liabilities**_ **Funds of the Charity Restricted income funds (Note 14) Unrestricted funds** _**Total funds**_
|**Unrestricted**
**funds**
**£**|
**Restricted**
**income**
**funds**
**Total this**
**year**
**_Total last_**
**_year_**
**£**
**£**
**_£_**|
**Restricted**
**income**
**funds**
**Total this**
**year**
**_Total last_**
**_year_**
**£**
**£**
**_£_**|
**Restricted**
**income**
**funds**
**Total this**
**year**
**_Total last_**
**_year_**
**£**
**£**
**_£_**|
|---|---|---|---|
|40,648|-|40,648|_36,595_|
|**40,648**|**-**|**40,648**|**_36,595_**|
|||||
|2,182|-|2,182|_1,514_|
|5,593|29,429|35,022|_31,561_|
|**7,775**|**29,429**|**37,204**|**_33,075_**|
|||||
|5,608|-|5,608|_9,101_|
|||||
|**2,167**|**29,429**|**31,596**|**_23,974_**|
|||||
|**42,815**|**29,429**|**72,244**|**_60,569_**|
|||||
||29,429|29,429|_16,025_|
|42,815||42,815|_44,544_|
|**42,815**|**29,429**|**72,244**|**_60,569_**|
CC17a (Excel)
08/07/2021
2
**Section C Notes to the accounts**
## Note 1 **Basis of preparation**
_**This section should be completed by all charities** ._
## **1.1 Basis of accounting**
These accounts 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 accounts have been prepared in accordance with:
the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial • and with* ✓ Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014
- and with the Charities Act 2011.
The charity constitutes a public benefit entity as defined by FRS 102.*
✓
* -Tick as appropriate
## **1.2 Going concern**
_**If there are material uncertainties related to events or conditions that cast significant doubt on the charity's ability to continue as a going concern, please provide the following details or state "Not applicable", if appropriate:**_
**An explanation as to those factors that support the conclusion that the charity is a going concern;**
The coronavirus pandemic has had a negative impact on the charity’s income since March 2020. The charity has been unable to run fundraising events, school holiday activities, care home visits and well-being interventions. In November 2020, the charity was able to re-open for its onsite well-being support, but a few weeks later, the country went back into lockdown and so interventions were once again unable to run. On-site interventions re-opened again from April 2021, although these are being run at lower capacity due to staffing levels and Government restrictions. However the charity has been successful in applications for additional grant funding which has been received in 202021. Demand for horse rescues and rehoming is continuing to rise and well-being service referrals have increased by 50% and so the outlook for The Hugs Foundation is looking optimistic.
## **1.3 Change of accounting policy**
The accounts present a true and fair view and the accounting policies adopted are those outlined in note 2.
## **1.4 Changes to accounting estimates**
No changes to accounting estimates have occurred in the reporting period (3.46 FRS 102 SORP).
## **1.5 Material prior year errors**
No material prior year error have been identified in the reporting period (3.47 FRS 102 SORP).
CC17a (Excel)
08/07/2021
3
**Section C Notes to the accounts (cont)**
## **Note 2 Accounting policies 2.1 INCOME**
|**Recognition of income**
These are included in the Statement of Financial Activities (SoFA) when:
• the charity becomes entitled to the resources;
•it is more likely than not that the trustees will receive the resources; and
• the monetary value can be measured with sufficient reliability.
**Donated goods**
**Contractual income and**
**performance related**
**grants**
**Offsetting**
There has been no offsetting of assets and liabilities, or income and expenses, unless required or
permitted by the FRS 102 SORP or FRS 102.
**Grants and donations**
Grants and donations are only included in the SoFA when the general income recognition
criteria are met (5.10 to 5.12 FRS102 SORP).
This is only included in the SoFA once the charity has provided the related goods or
services or met the performance related conditions.
Donated goods for resale are measured at fair value on initial recognition, which is the
expected proceeds from sale less the expected costs of sale, and recognised in 'Income
from other trading activities' with the corresponding stock recognised in the balance
sheet. On its sale the value of stock is charged against 'Income from other trading
activities' and the proceeds from sale are also recognised as 'Income from other trading
activities'.
Goods donated for on-going use by the charity are recognised as tangible fixed assets
and included in the SoFA as incoming resources when receivable.
Gifts in kind for use by the charity are included in the SoFA as income from donations
when receivable.
The cost of any stock of goods donated for distribution to beneficiaries is deemed to be
the fair value of those gifts at the time of their receipt and they are recognised on receipt.
In the reporting period in which the stocks are distributed, they are recognised as an
expense at the carrying amount of the stocks at distribution.
The value of any voluntary help received is not included in the accounts but is described
in the trustees’ annual report.
**Settlement of insurance**
**claims**
Insurance claims are only included in the SoFA when the general income recognition
criteria are met (5.10 to 5.12 FRS102 SORP) and are included as an item of other
income in the SoFA.
**Support costs**
The charity has incurred expenditure on support costs.
**Volunteer help**
Donated services and facilities that are consumed immediately are recognised as income
with an equivalent amount recognised as an expense under the appropriate heading in
the SOFA.
**Donated services and**
**facilities**
Donated services and facilities are included in the SOFA when received at the value of
the gift to the charity provided the value of the gift can be measured reliably.
Donated goods are measured at fair value (the amount for which the asset could be
exchanged) unless impractical to do so.
In the case of performance related grants, income must only be recognised to the extent
that the charity has provided the specified goods or services as entitlement to the grant
only occurs when the performance related conditions are met (5.16 FRS 102 SORP).
**Legacies**
Legacies are included in the SOFA when receipt is probable, that is, when there has
been grant of probate, the executors have established that there are sufficient assets in
the estate and any conditions attached to the legacy are either within the control of the
charity or have been met.
**Government grants**
The charity has received government grants in the reporting period
**Tax reclaims on**
**donations and gifts**
Gift Aid receivable is included in income when there is a valid declaration from the donor.
Any Gift Aid amount recovered on a donation is considered to be part of that gift and is
treated as an addition to the same fund as the initial donation unless the donor or the
terms of the appeal have specified otherwise.
This includes any realised or unrealised gains or losses on the sale of investments and
any gain or loss resulting from revaluing investments to market value at the end of the
year.
**Income from interest,**
**royalties and dividends**
This is included in the accounts when receipt is probable and the amount receivable can
be measured reliably.
**Income from membership**
**subscriptions**
Membership subscriptions received in the nature of a gift are recognised in Donations
and Legacies.
Membership subscriptions which gives a member the right to buy services or other
benefits are recognised as income earned from the provision of goods and services as
income from charitable activities.
**Investment gains and**
**losses**|Yes
No
N/a|Yes
No
N/a|Yes
No
N/a|
|---|---|---|---|
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
## **Section C Notes to the accounts (cont)**
## **Note 2 Accounting policies 2.2 EXPENDITURE AND LIABILITIES**
||Yes|No|N/a|
|---|---|---|---|
||✓|✓|✓|
||Yes
✓|No
✓|N/a
✓|
||Yes|No|N/a|
||✓|✓|✓|
||Yes
✓|No
✓|N/a
✓|
||Yes
✓|No
✓|N/a
✓|
||Yes
✓|No
✓|N/a
✓|
||Yes|No|N/a|
||✓|✓|✓|
||Yes
✓|No
✓|N/a
✓|
||Yes
✓|No
✓|N/a
✓|
||Yes
✓|No
✓|N/a
✓|
||Yes
✓|No
✓|N/a
✓|
||Yes|No|N/a|
||✓|✓|✓|
||Yes
✓|No
✓|N/a
✓|
||Yes|No|N/a|
||✓|✓|✓|
||Yes|No|N/a|
||✓|✓|✓|
||Yes|No|N/a|
||✓|✓|✓|
||Yes|No|N/a|
||✓|✓|✓|
||Yes|No|N/a|
||✓|✓|✓|
||Yes|No|N/a|
||✓|✓|✓|
||Yes
✓|No
✓|N/a
✓|
||Yes|No|N/a|
||✓|✓|✓|
||Yes
✓|No
✓|N/a
✓|
||Yes|No|N/a|
||✓|✓|✓|
|**2.3 ASSETS**
**Intangible fixed assets**
**Heritage assets**
These are capitalised if they can be used for more than one year, and cost at least
£3,000.
**Creditors**
The charity has creditors which are measured at settlement amounts less any trade
discounts
**Provisions for liabilities**
A liability is measured on recognition at its historical cost and then subsequently
measured at the best estimate of the amount required to settle the obligation at the
reporting date
**Basic financial**
**instruments**
Support costs include central functions and have been allocated to activity cost
categories on a basis consistent with the use of resources, eg allocating property costs
by floor areas, or per capita, staff costs by the time spent and other costs by their usage.
**Redundancy cost**
The charity made no redundancy payments during the reporting period.
**Deferred income**
No material item of deferred income has been included in the accounts.
**Governance and support**
**costs**
Support costs have been allocated between governance costs and other support.
Governance costs comprise all costs involving public accountability of the charity and its
compliance with regulation and good practice.
**Liability recognition**
Liabilities are recognised where it is more likely than not that there is a legal or
constructive obligation committing the charity to pay out resources and the amount of the
obligation can be measured with reasonable certainty.
They are valued at cost.
**Investments**
Fixed asset investments in quoted shares, traded bonds and similar investments are
valued at initially at cost and subsequently at fair value (their market value) at the year
end. The same treatment is applied to unlisted investments unless fair value cannot be
measured reliably in which case it is measured at cost less impairment.
Investments held for resale or pending their sale and cash and cash equivalents with a
maturity date of less than 1 year are treated as current asset investments
**Grants with performance**
**conditions**
Where the charity gives a grant with conditions for its payment being a specific level of
service or output to be provided, such grants are only recognised in the SoFA once the
recipient of the grant has provided the specified service or output.
**Grants payable without**
**performance conditions**
Where there are no conditions attaching to the grant that enables the donor charity to
realistically avoid the commitment, a liability for the full funding obligation must be
recognised.
**Stocks and work in**
**progress**
Stocks held for sale as part of non-charitable trade are measured at the lower or cost or net
realisable value.
They are valued at cost.
The charity has intangible fixed assets, that is, non-monetary assets that do not have
physical substance but are identifiable and are controlled by the charity through custody
or legal rights. The amortisation rates and methods used are disclosed in note 9.5
They are valued at cost.
The charity has heritage assets, that is, non-monetary assets with historic, artistic,
scientific, technological, geophysical or environmental qualities that are held and
maintained principally for their contribution to knowledge and culture. The depreciation
rates and methods used as disclosed in note 9.6.1.4.
The charity accounts for basic financial instruments on initial recognition as per
paragraph 11.7 FRS102 SORP. Subsequent measurement is as per paragraphs 11.17
to 11.19, FRS102 SORP.
**Tangible fixed assets for**
**use by charity**
The depreciation rates and methods used are disclosed in note 9.2.
Goods or services provided as part of a charitable activity are measured at net realisable value
based on the service potential provided by items of stock.
Work in progress is valued at cost less any foreseeable loss that is likely to occur on the contract.
**Debtors**
Debtors (including trade debtors and loans receivable) are measured on initial recognition at
settlement amount after any trade discounts or amount advanced by the charity. Subsequently,
they are measured at the cash or other consideration expected to be received.
**Current asset investments**
The charity has has investments which it holds for resale or pending their sale and cash and cash
equivalents with a maturity date less than one year. These include cash on deposit and cash
equivalents with a maturity date of less than one year held for investment purposes rather than to
meet short term cash commitments as they fall due.
They are valued at fair value except where they qualify as basic financial instruments.|Yes
No
N/a|Yes
No
N/a|Yes
No
N/a|
|---|---|---|---|
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
||Yes
No
N/a
|||
||✓|✓|✓|
||Yes
No
N/a|||
||✓|✓|✓|
**Section C Notes to the accounts (cont)**
## **Note 3 Analysis of income**
|**TOTAL INCOME**
**Other trading**
**activities:**
**Donations and**
**legacies:**
**Charitable**
**activities:**|**Analysis**|**Unrestricted**
**funds**
**Restricted**
**income**
**funds**
**Total funds**
**_Prior year_**
**£**
**_£_**|**Unrestricted**
**funds**
**Restricted**
**income**
**funds**
**Total funds**
**_Prior year_**
**£**
**_£_**|**Unrestricted**
**funds**
**Restricted**
**income**
**funds**
**Total funds**
**_Prior year_**
**£**
**_£_**|**Unrestricted**
**funds**
**Restricted**
**income**
**funds**
**Total funds**
**_Prior year_**
**£**
**_£_**|
|---|---|---|---|---|---|
||Donations|153,467|-|153,467|_274,405_|
||Legacies|-|-|-|_176_|
||General grants provided by
government/other charities|7,320|-|7,320|_13,165_|
||Membership subscriptions
and sponsorships|1,087|-|1,087|_362_|
||**Total **|**161,874**|**-**|**161,874**|**_288,108_**|
|||||||
||Grants|500|94,481|94,981|_53,750_|
||Rehoming|7,405|-|7,405|_6,950_|
||Mental Health|750|-|750|_26,601_|
||Therapy/Wellbeing|-|-|-|_8,218_|
||Children's HolidayActivities|-|-|-|_2,420_|
||Other|-|-|-|_3_|
||**Total **|**8,655**|**94,481**|**103,136**|**_97,942_**|
|||||||
||Hire income|1,369|-|1,369|_395_|
||**Total **|**1,369**|**-**|**1,369**|**_395_**|
|||||||
|||**171,898**|**94,481**|**266,379**|**_386,445_**|
## **Note 4 Analysis of receipts of government grants**
|**Note 4**|**Analysis of receipts of government grants**|||
|---|---|---|---|
|**Government grant**|**Total**
HMRC Job Retention Scheme
**Description**|**This year**
**_Prior year_**
**£**
**_£_**||
|||_7,321_|_13,165_|
|||**_7,321_**|**_13,165_**|
CC17a (Excel)
08/07/2021
6
**Section C Notes to the accounts (cont)**
## **Note 5 Analysis of expenditure**
|**Unrestricted**
**funds**
**Restricted**
**income**
**funds**
**Total funds**
**£**
21,354 - 21,354
116- 116
468- 468
652 -652
**22,590 - 22,590**
59,030 59,649118,679
Recruitment Costs
557 -557
15,276 3,66018,936
5,8523016,153
1,6704,8116,481
4,671 1,488 6,159
2,001 - 2,001
1,5184,123 5,641
6,741 -6,741
9,056-9,056
224 - 224
3,47730 3,507
31,74313131,874
4,990 65 5,055
764 - 764
8,520-8,520
9478191,766
**157,037 75,077 232,114**
**179,627**
**75,077**
**254,704**
**TOTAL EXPENDITURE**
**Total expenditure on**
**charitable activities**
Bank and Payment Charges
Utilities and Rates
Insurance
Professional Fees
Sundries
Transport and Travel
Depreciation
Office Supplies
Staff Costs
Staff Costs
**Total expenditure on raising**
**funds**
Advertising, marketing, direct
mail andpublicity
Operating membership
schemes and social lotteries
Incurred seeking donations
Yard Expenditure
Equine Care
Training
Computers and Internet
**Expenditure on charitable activities:**
Repairs and Renewals
Veterinaryand Medical Costs
Feed
**Analysis**
**This year**
**Expenditure on raising funds:**|**Unrestricted**
**funds**
**Restricted**
**income**
**funds**
**Total funds**
**£**
21,354 - 21,354
116- 116
468- 468
652 -652
**22,590 - 22,590**
59,030 59,649118,679
Recruitment Costs
557 -557
15,276 3,66018,936
5,8523016,153
1,6704,8116,481
4,671 1,488 6,159
2,001 - 2,001
1,5184,123 5,641
6,741 -6,741
9,056-9,056
224 - 224
3,47730 3,507
31,74313131,874
4,990 65 5,055
764 - 764
8,520-8,520
9478191,766
**157,037 75,077 232,114**
**179,627**
**75,077**
**254,704**
**TOTAL EXPENDITURE**
**Total expenditure on**
**charitable activities**
Bank and Payment Charges
Utilities and Rates
Insurance
Professional Fees
Sundries
Transport and Travel
Depreciation
Office Supplies
Staff Costs
Staff Costs
**Total expenditure on raising**
**funds**
Advertising, marketing, direct
mail andpublicity
Operating membership
schemes and social lotteries
Incurred seeking donations
Yard Expenditure
Equine Care
Training
Computers and Internet
**Expenditure on charitable activities:**
Repairs and Renewals
Veterinaryand Medical Costs
Feed
**Analysis**
**This year**
**Expenditure on raising funds:**|**Unrestricted**
**funds**
**Restricted**
**income**
**funds**
**Total funds**
**£**
21,354 - 21,354
116- 116
468- 468
652 -652
**22,590 - 22,590**
59,030 59,649118,679
Recruitment Costs
557 -557
15,276 3,66018,936
5,8523016,153
1,6704,8116,481
4,671 1,488 6,159
2,001 - 2,001
1,5184,123 5,641
6,741 -6,741
9,056-9,056
224 - 224
3,47730 3,507
31,74313131,874
4,990 65 5,055
764 - 764
8,520-8,520
9478191,766
**157,037 75,077 232,114**
**179,627**
**75,077**
**254,704**
**TOTAL EXPENDITURE**
**Total expenditure on**
**charitable activities**
Bank and Payment Charges
Utilities and Rates
Insurance
Professional Fees
Sundries
Transport and Travel
Depreciation
Office Supplies
Staff Costs
Staff Costs
**Total expenditure on raising**
**funds**
Advertising, marketing, direct
mail andpublicity
Operating membership
schemes and social lotteries
Incurred seeking donations
Yard Expenditure
Equine Care
Training
Computers and Internet
**Expenditure on charitable activities:**
Repairs and Renewals
Veterinaryand Medical Costs
Feed
**Analysis**
**This year**
**Expenditure on raising funds:**|**Unrestricted**
**funds**
**Restricted**
**income**
**funds**
**Total funds**
**£**
21,354 - 21,354
116- 116
468- 468
652 -652
**22,590 - 22,590**
59,030 59,649118,679
Recruitment Costs
557 -557
15,276 3,66018,936
5,8523016,153
1,6704,8116,481
4,671 1,488 6,159
2,001 - 2,001
1,5184,123 5,641
6,741 -6,741
9,056-9,056
224 - 224
3,47730 3,507
31,74313131,874
4,990 65 5,055
764 - 764
8,520-8,520
9478191,766
**157,037 75,077 232,114**
**179,627**
**75,077**
**254,704**
**TOTAL EXPENDITURE**
**Total expenditure on**
**charitable activities**
Bank and Payment Charges
Utilities and Rates
Insurance
Professional Fees
Sundries
Transport and Travel
Depreciation
Office Supplies
Staff Costs
Staff Costs
**Total expenditure on raising**
**funds**
Advertising, marketing, direct
mail andpublicity
Operating membership
schemes and social lotteries
Incurred seeking donations
Yard Expenditure
Equine Care
Training
Computers and Internet
**Expenditure on charitable activities:**
Repairs and Renewals
Veterinaryand Medical Costs
Feed
**Analysis**
**This year**
**Expenditure on raising funds:**|**_Unrestricted_**
**_funds_**
**_Restricted_**
**_income_**
**_funds_**
**_Total funds_**
**_£_**
**_Last year_**|**_Unrestricted_**
**_funds_**
**_Restricted_**
**_income_**
**_funds_**
**_Total funds_**
**_£_**
**_Last year_**|**_Unrestricted_**
**_funds_**
**_Restricted_**
**_income_**
**_funds_**
**_Total funds_**
**_£_**
**_Last year_**|
|---|---|---|---|---|---|---|
|||||_18,642_|_-_|_18,642_|
|||||_112_|_-_|_112_|
|||||_840_|_-_|_840_|
|||||_8,636_|_-_|_8,636_|
|||||**_28,230_**|**_-_**|**_28,230_**|
||||||||
|Staff Costs|59,030|59,649|118,679|_179,808 _|3,370|_183,178_|
|Recruitment Costs|557|-|557|_202 _|-|_202 _|
|Veterinaryand Medical Costs|15,276|3,660|18,936|_19,016 _|3,968|_22,984 _|
|Feed|5,852|301|6,153|_15,562 _|986|_16,548_|
|Yard Expenditure|1,670|4,811|6,481|_9,106 _|730|_9,836_|
|Equine Care|4,671|1,488|6,159|_5,235 _|649|_5,884 _|
|Training|2,001|-|2,001|_2,364 _|-|_2,364 _|
|Repairs and Renewals|1,518|4,123|5,641|_2,669_|-|_2,669_|
|Insurance|6,741|-|6,741|_6,214_|-|_6,214_|
|Professional Fees|9,056|-|9,056|_13,353_|-|_13,353_|
|Bank and Payment Charges|224|-|224|_172_|-|_172_|
|Computers and Internet|3,477|30|3,507|_5,634 _|-|_5,634 _|
|Utilities and Rates|31,743|131|31,874|_26,995_|-|_26,995_|
|Transport and Travel|4,990|65|5,055|_2,862 _|20|_2,882 _|
|Office Supplies|764|-|764|_1,724_|-|_1,724_|
|Depreciation|8,520|-|8,520|_6,680_|-|_6,680_|
|Sundries|947|819|1,766|_3,413 _|2|_3,415_|
|**Total expenditure on**
**charitable activities**|**157,037**|**75,077**|**232,114**|**_301,009_**|**_9,725_**|**_310,734_**|
|**TOTAL EXPENDITURE**|||||||
||**179,627**|**75,077**|**254,704**|**_329,239_**|**_9,725_**|**_338,964_**|
CC17a (Excel)
08/07/2021
7
**Section C Notes to the accounts (cont)**
## **Note 6 Details of certain items of expenditure**
## **6.1 Fees for examination of the accounts**
_**Please provide details of the amount paid for any statutory external scrutiny of accounts and other services provided by your independent examiner. If nothing was paid please enter '0' in the appropriate box(es).**_
**Independent examiner’s fees**
**----- Start of picture text -----**
This year Last year
£ £
300 300
**----- End of picture text -----**
## **Note 7 Paid employees**
_**Please complete this note if the charity has any employees.**_ **7.1 Staff Costs**
**----- Start of picture text -----**
This year Last year
£ £
Salaries and wages 129,821 185,325
Social security costs 6,528 11,628
Pension costs (defined contribution scheme) 3,684 4,868
Total staff costs 140,033 201,821
This year Last year
£ £
Please provide the total amount paid to key
management personnel (includes trustees and
senior management) for their services to the charity. 67,070 102,834
For specific amounts paid to trustees, see Note 28.
This year Last year
7.2 Average head count in the year
Number Number
The parts of the charity in which the Fundraising 1 1
employees work Charitable Activities 6 9
Total 7 10
**----- End of picture text -----**
**Note 8 Defined contribution pension scheme or defined benefit scheme accounted for as a defined contribution scheme.**
## _**8.1 Please complete this note if a defined contribution pension scheme is operated.**_
**Amount of contributions recognised in the SOFA as an expense**
|**Thisyear**|**Lastyear**|
|---|---|
|**£**|**£**|
|3,684|4,868|
CC17a (Excel)
08/07/2021
8
**Section C Notes to the accounts (cont)**
## **Note 9 Tangible fixed assets**
## _**Please complete this note if the charity has any tangible fixed assets**_
## **9.1 Cost or valuation**
|At the beginning of the year
Additions
Disposals
At end of the year
****Basis**
**** Rate**
At beginning of the year
Disposals
Depreciation
At end of the year
Net book value at the beginning of the year
Net book value at the end of the year
**9.3 Net book value**
**9.2 Depreciation and impairments**|**Freehold**
**land &**
**buildings**
**£**|**Other land &**
**buildings**
**£**|
**Yard**
**equipment**
**£**|**Total**
**£**|
|---|---|---|---|---|
||1,104|563|42,231|43,898|
||-|-|12,574|12,574|
||-|-|-|-|
||**1,104**|**563**|**54,805**|**56,472**|
||RB
RB
SL
25%
25%
4/7/10years||||
||638|247|6,419|7,304|
||-|-|-|-|
||117|79|8,324|8,520|
||**755**|**326**|**14,743**|**15,824**|
||||||
||_466_|_316_|_35,812_|_36,594_|
||349|237|40,062|40,648|
CC17a (Excel)
08/07/2021
9
**Section C Notes to the accounts (cont)**
## **Note 10 Debtors and prepayments**
_**Please complete this note if the charity has any debtors or t**_ **10.1 Analysis of debtors Trade debtors Prepayments and accrued income Taxation and social security Total**
|**This year**
**£**|**_Last year_**
**_£_**|
|---|---|
|97|_638_|
|1,723|_1,621_|
|362|_-_|
|**2,182**|**_2,259_**|
## **Note 11 Creditors and accruals**
## _**Please complete this note if the charity has any creditors or accruals.**_
## **11.1 Analysis of creditors**
|**Trade creditors**
**Accruals and deferred income**
**Taxation and social security**
**Other creditors**
**Total **|**Amounts falling due**
**within oneyear**|**Amounts falling due**
**within oneyear**|**Amounts falling due after**
**more than oneyear**|**Amounts falling due after**
**more than oneyear**|
|---|---|---|---|---|
||**This year**
**£**|**Last year**
**£**|**This year**
**£**|**Last year**
**£**|
||1,115|_5,077_|-|-|
||1,464|_1,690_|-|-|
||-|_1,446_|-|-|
||3,029|_1,633_|-|-|
||**5,608**|**_9,846_**|-|-|
## **Note 12 Cash at bank and in hand**
**Cash at bank and on hand Total**
|**This year**
**£**|**Last year**
**£**|
|---|---|
|35,022|_31,561_|
|**35,022**|**_31,561_**|
CC17a (Excel)
08/07/2021
10
## **Note 13 Events after the end of the reporting period**
_**Please complete this note events (not requiring adjustment to the accounts) have occurred after the end of the reporting period but before the accounts are authorised which relate to conditions that arose after the end of the reporting period.**_
|**Please provide details of the**
**nature of the event**
**Provide an estimate of the**
**financial effect of the event**
**or a statement that such an**
**estimate cannot be made**|**Thisyear**
**Lastyear**|**Thisyear**
**Lastyear**|
|---|---|---|
||We currently have just one member
of staff on the furlough scheme. We
are hoping to bring the staff member
back to work in August 2021. We
also have our yard manager on
maternity leave meaning we have a
very small yard team. A business
recovery plan is in place to help the
charity recover from the pandemic
and then grow to meet demand for
both the animal welfare services The
Hugs Foundation provides and its
well-being support.|Due to COVID-19 impacting charity
funding, we had to furlough 4
members of staff and in June 2020
they were very sadly made
redundant as the financial climate
does not seem to be improving
anytime in the near future. This
enables our focus to be primarily on
the welfare and care of the animals
and humans that Hugs Foundation
supports.
|
||||
||The charity has put a plan in place to
keep expenditure to a minimum
whilst it recovers from the effects of
the pandemic. Income stream have
been diversified and applications
from trust and grant funding have
been successful so far and so the
Trustees are confident that the
charity’s plan will see the charity
through this difficult time and
steadily increase income once more.|This has saved the charity just under
£8,000 monthly - equating to over
£95,000 annually.
|
CC17a (Excel)
08/07/2021
11
**Section C Notes to the accounts (cont)**
## **Note 14 Charity funds**
## **14.1 Details of material funds held and movements during the CURRENT reporting period**
_*** Key: PE - permanent endowment funds; EE - expendible endowment funds; R - restricted income funds, including special trusts, of the charity; and UR - unrestricted funds**_
|**Fund names**|**Type PE,**
**EE R or**
**UR ***|**Purpose and Restrictions**|**Fund**
**balances at**
**1 June 2020**
**£**|**Income**
**£**|**Expenditure**
**£**|**Transfers**
**£**|**Fund**
**balances at**
**31 May 2021**
**£**|
|---|---|---|---|---|---|---|---|
|Network for Animals|R|Towards cost of care for 4 rescueponies|1,586|-|- 1,586|-|**-**|
|Network for Animals|R|Towardspurchase of field shelters|-|6,000|-|- 6,000|**-**|
|Support Adoption for Pets Covid-19 EmergencyGrant|R|Towards cost of vets bills,feed and bedding|2,822|-|- 2,822|-|**-**|
|Support Adoption for Pets Covid-19 EmergencyGrant|R|Towardsyard staffingcosts|-|5,000|- 5,000|-|**-**|
|The Edward GostlingFoundation|R|Towards Youth Well-Beingteam salaries|-|3,400|- 3,400|-|**-**|
|Co-OpLocal CommunityFund|R|Towardsplayarea,sensory garden and sensoryroom|721|1,869|- 242|-|**2,348**|
|Together for Families|R|Towards bursaries for familywell-beingsessions|5,714|-|- 2,550|-|**3,164**|
|Claire Milne Trust|R|Towards bursaries for well-beingsessions|1,882|-|- 1,500|-|**382**|
|The Clara E Burgess Charitable Trust|R|Towards bursaries for well-beingsessions|3,300|-|- 350|-|**2,950**|
|Animal Friends / Jean Sainsbury Animal Welfare Trust
/ Sylvia Waddilove EmergencyFunding|R|Towards animal care costs includingsalaries|-|17,500|- 17,500|-|**-**|
|Cornwall Community Foundation Covid-19 Emergency
Grant|R|To run 'A DailyHug' Facebook Liveproject|-|9,907|- 9,907|-|**-**|
|Animal Rescue Foundation|R|Towards animal care costs and vet bills|-|6,500|- 5,517|-|**983**|
|The Annandale Charitable Trust|R|To fund costs including fencing, agility equipment, track
system for laminitic ponies, items for the sensory garden
and other runningcosts.|-|10,000|- 4,600|-|**5,400**|
|Marjorie Coota Animal CharityTrust|R|Towards vet bills|-|250|- 250|-|**-**|
|National LotteryAwards for All|R|Veterans Well-BeingProject|-|4,043|- 674|-|**3,369**|
|The Michael & ShirleyHunt Charitable Trust|R|12 x care home visits|-|1,000|-|-|**1,000**|
|PetPlan EmergencyFunding|R|Towards staff costs for 4 months|-|6,239|- 6,239|-|**-**|
|Elise Pilkington Charitable Trust|R|Land Maintenance|-|4,940|- 4,143|-|**797**|
|Mind Coronavirus Mental Health Response Fund|R|A DailyHug12 week Project|-|5,297|- 5,297|-|**-**|
|Tesco Bags of HelpCOVID-19 Communities Fund|R|Facebook Live Equipment|-|500|- 500|-|**-**|
|W O Street Charitable Foundation|R|Youth Services core costs|-|3,000|- 3,000|-|**-**|
|South West Water Neighbourhood Fund|R|To fund 10 children/young people to access free well-
beinginterventions|-|4,594|-|-|**4,594**|
|Cornwall CommunityFoundation Karenza|R|To fund 8 children/young people to access free well-being
interventions|-|4,442|-|-|**4,442**|
|_Unrestricted Funds_|UR|N/A|44,544|171,898|- 179,627|6,000|**42,815**|
|**Total Funds**|||**60,569**|**266,379**|**- 254,704**|**-**|**72,244**|
CC17a (Excel)
08/07/2021
12
**Section C Notes to the accounts (cont)**
## **Note 14 Charity funds**
## **14.2 Details of material funds held and movements during the PREVIOUS reporting period**
_*** Key: PE - permanent endowment funds; EE - expendible endowment funds; R - restricted income funds, including special trusts, of the charity; and UR - unrestricted funds**_
|**_unrestricted funds_**||||||||
|---|---|---|---|---|---|---|---|
|**_Fund names_**|**_Type PE, EE_**
**_R or UR *_**|**_Purpose and Restrictions_**|**_Fund_**
**_balances at_**
**_1 June 2019_**
**_£_**|**_Income_**
**_£_**|**_Expenditure_**
**_£_**|**_Transfers_**
**_£_**|**_Fund_**
**_balances at_**
**_31 May 2020_**
**_£_**|
|_Network for Animals_|_R_|_Towards cost of care for 4 rescue ponies_|_-_|_5,000_|_-3,414_|_-_|**_1,586_**|
|_Support Adoption for Pets Covid-19_
_Emergency Grant_|_R_|_Towards cost of vets bills, feed and_
_bedding_|_-_|_5,000_|_- 2,178_|_-_|**_2,822_**|
|_Co-Op Local Community Fund_|_R_|_Towards play area, sensory garden and_
_sensory room._|_-_|_721_|_-_|_-_|**_721_**|
|_Together for Families_|_R_|_12 families to have a fully funded course of_
_8 sessions_|
_-_|_6,378_|_-664_|_-_|**_5,714_**|
|_Claire Milne Trust_|_R_|_6 children to have 6 x fully funded_
_sessions_|_-_|_1,882_|_-_|_-_|**_1,882 _**|
|_The Clara E Burgess Charitable Trust_|_R_|_Shortfall x 29 children under 10 to have 8_
_x 1 hour sessions_|_-_|_5,000_|_- 1,700_|_-_|**_3,300_**|
|_Jean Sainsbury Animal Welfare Trust_|_R_|_Towards purchase of a horsebox_|_-_|_5,000_|_-_|_-5,000 _|**_-_**|
|_Support Adoption for Pets_|_R_|_Towards purchase of a horsebox_|_-_|_20,000_|_-_|_- 20,000 _|**_-_**|
|_Cornwall Community Foundation_
_Covid-19 Emergency Grant_|_R_|_To fund staffing costs for 4 weeks of_
_Facebook Live posts_|_-_|_1,769_|_- 1,769_|_-_|**_-_**|
|_Unrestricted Funds_|_UR_|_N/A_|_13,088_|_335,695_|_-329,239_|_25,000 _|**_44,544_**|
|**_Total Funds_**|||**_13,088_**|**_386,445_**|**_- 338,964_**|**_-_**|**_60,569_**|
**Section C Notes to the accounts**
## **Note 15 Charity funds (cont)**
## **15.1 Transfers between funds**
## **This year**
|**This year**
**15.1 Transfers**|**between funds**||
|---|---|---|
||**Reason for transfer and where endowment is converted to**
**income, legalpower for its conversion**|**Amount**|
|Between
unrestricted and
restricted funds|Funding received from Network for Animals to contribute towards the
cost of 3 mobile field shelters. These were purchased in January for
2021 for £8,254.|£ 6,000|
## **Note 16 Transactions with trustees and related parties**
_**If the charity has any transactions with related parties (other than the trustee expenses explained in guidance notes) details of such transactions should be provided in this note. If there are no transactions to report, please enter “True” in the box or "False" if there are transactions to report.**_
## **16.1 Trustee remuneration and benefits**
## **This year**
**None of the trustees have been paid any remuneration or received any other TRUE benefits from an employment with their charity or a related entity**
## **Last year**
**None of the trustees have been paid any remuneration or received any other benefits from an employment with their charity or a related entity**
**TRUE**
## **16.2 Transaction(s) with related parties**
_**Please give details of any transaction undertaken by (or on behalf of) the charity in which a related party has a material interest, including where funds have been held as agent for related parties. If there are no such transactions, please enter 'true' in the box provided.**_
## **This year**
|**This year**|**This year**|**This year**|**This year**||
|---|---|---|---|---|
|**There have been no related party transactions in the reporting period**||||**_FALSE_**|
||||||
|**Name of the**
**trustee or**
**relatedparty**|**Relationship**
**to charity**|**Description of the transaction(s)**|**This Year**|**Last Year**|
|Andrew Bowden|Chairman|Director of Carbonxgen Ltd which made
donations to the charity during the year.
Carbonxgen Ltd also own the land that
the charity operates from. The charity
pays a nominal rent back to Carbonxgen
Ltd for using the land.|£ 130,605
|£ 251,165|
CC17a (Excel)
08/07/2021
14
## **Independent examiner's report on the accounts**
**Section A Independent Examiner’s Report**
|**Report to the trustees/**
**members of**
**On accounts for the year**
**ended**
**Set out on pages**
**Responsibilities and**
**basis of report**
**Independent**
**examiner's statement**|Charity Name
The Hugs Foundation|Charity Name
The Hugs Foundation|Charity Name
The Hugs Foundation|
|---|---|---|---|
|||||
||31 May 2021|**Charity no**
**(if any)**|1175633|
|||||
||1-2|||
||I report to the trustees on my examination of the accounts of the above
charity (“the Trust”) for the year ended**31 / 05 / 2021**.
As the charity's trustees, you are responsible for the preparation of the
accounts in accordance with the requirements of the Charities Act 2011
(“the Act”).
I report in respect of my examination of the Trust’s accounts carried out
under section 145 of the 2011 Act and in carrying out my examination, I
have followed all the applicable Directions given by the Charity Commission
under section 145(5)(b) of the Act.
The charity’s gross income exceeded £250,000 and I am qualified to
undertake the examination by being a qualified member of The Chartered
Institute of Management Accountants.|||
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination which gives me cause to believe that in, any material respect:
- the accounting records were not kept in accordance with section 130 of the Charities Act; or
- the accounts did not accord with the accounting records; or
- the accounts did not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.
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.
|**Signed:**
**Name:**
**Relevant professional**
**qualification(s) or body**
**(if any):**||0 8/0 9/2 0 2 1|
|---|---|---|
||||
||Graham Kemp||
||||
||The Chartered Institute of Management Accountants||
**Oct 2018**
1
**IER**
**Address:** Park House, Headley Road, Woodley, Berkshire, RG5 4JB
## **Section B Disclosure**
Only complete if the examiner needs to highlight material matters of concern (see CC32, Independent examination of charity accounts: directions and guidance for examiners).
**Give here brief details of any items that the examiner wishes to disclose** .
**Oct 2018**
2
**IER**