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2020-12-31-accounts

Charity number: 1179928

CANDY CANE RESCUE Charitable Incorporated Organisation

UNAUDITED

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

CANDY CANE RESCUE

CONTENTS

Page
Reference and administrative details of the Charity, its Trustees and advisers 1
Trustees' report 2 - 20
Independent examiner's report 21
Statement of financial activities 22
Balance sheet 23
Notes to the financial statements 24 - 35

CANDY CANE RESCUE

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2020

Trustees David Gibson
Maura Berrini, Chair
Jenna Ann Harris (appointed 13 January 2020)
Karen Hassan (appointed 4 October 2020)
Susan Cotton
Georgina Keenan (appointed 13 January 2020, resigned 13 December 2020)
Charity registered
number
1179928
Principal office
Boundary House
4 County Place
Chelmsford
CM2 0RE
Independent examiner
MHA MacIntyre Hudson
Chartered Accountants
Boundary House
4 County Place
Chelmsford
Essex
CM2 0RE
Bankers
Lloyds Bank plc.
25 Gresham Street
London
EC2V 7HN

Page 1

Trustees’ Annual Report

for

Candy Cane Rescue

Charity Registration Nr: 1179928

For The Period 1 January 2020 to 31 December 2020

rescue@candycanerescue.org | CandyCane Rescue is a registered charity | Number 1179928

Page 2

Contents

  1. Structure, Governance and Management

  2. a. Charity Constitution

  3. b. Organisational Structure

  4. c. Charity Advisors

  5. d. Trustees

  6. Objectives and Activities

  7. a. The Aims of Candy Cane

  8. b. The Process – Journey From Rescue to Forever Home

  9. c. Strategies to Achieve Aims of Charity

  10. d. Benchmark Criteria to Measure Success

  11. e. Volunteers

  12. f. Grant Funding

  13. Achievements, Performance, Risks

  14. a. Achievements

  15. b. Performance

  16. c. Risks

  17. Financial Review

  18. Fundraising

  19. Plans for Future Periods

  20. Public Benefit

Financial Statements for Year Ended 31 December 2020

rescue@candycanerescue.org | CandyCane Rescue is a registered charity | Number 1179928

Page 3

1. Structure, Governance and Management

Candy Cane Rescue was founded in 2017 by Kerry Elliman and registered as a Charitable Incorporated Organisation (CIO) on 14 September 2018, registration number 1179928, with a registered address of Boundary House, 4 County Place, Chelmsford, CM2 0RE.

The objectives and purpose of the CIO, as per its Constitution, are to promote humane behaviour towards and rescue dogs (primarily Greyhounds) from the meat trade in China by providing appropriate care, protection, treatment and security for dogs which are in need of care and attention by reason of sickness, maltreatment, poor circumstances or ill usage, in particular, by providing rescue homes or other facilities for the reception, care and treatment of such dogs.

Expansion of the charity has demanded a few rescues (less than 5% of total) from other regions including the Vietnamese and South Korean meat markets, galgos from Spain and some hounds from Cyprus, Romania and Russia.

Once Candy Cane Rescue have committed to rescuing a dog they travel to the nearest vet for treatment, health checks and vaccinations. Once healthy enough they then go into boarding with one of our boarding partners in China with the aim of getting them to Beijing as soon as possible. Once vaccinated the quarantine starts which is 3 months for the UK and 30 days for the US.

We work with rescue partners in the US and the UK which take the dogs on arrival and rehome them once assessed and ready.

b) Organisational Structure

----- Start of picture text -----
Head Trustee Trustee Trustee
Maura Berrini Susan Cotton Karen Hassan
Founder
Kerry Elliman
Trustee Trustee Trustee
David Gibson Jenna Harris Georgina Keenan
China UK USA
Doe Doe (Yun Xiao) Volunteers Volunteers
Vets Admin Home Checker Fundraisers Flight Transport Fundraisers
Monika Kubal Co-Ordinator Gwenda Watt Volunteers Vaughan Harman Jacqueline Howard
Jayne Brack Sharon Podmore Kerry Elliman Ellen Ganopoulos
Angela Kilner Steve Hill
Karen Hassan
Coral Hodgkins
Boarders Home Checkers Amy Cole Flight Volunteers
Various Nancy Ann Jones
Nationwide
----- End of picture text -----

rescue@candycanerescue.org | CandyCane Rescue is a registered charity | Number 1179928

Page 4

1. Structure, Governance and Management (continued)

To help deliver the objectives of Candy Cane we work with the following rescue partner organisations:

United Kingdom

East Midlands Dog Rescue Contact: Sandy McClusky & Lynne Simpson Pingle Farm Seine Lane Enderby Leicestershire, LE19 4PD Ravens Rescue Contact: Sarah Price 47 Birds Meadow Pensnett Brierley Hill, DY5 4TD

Homes for Hounds 24 Butts Hill Crescent Bugbrooke Northants, NN7 3QP

United States of America

Motor City Greyhound Rescue Contact: Jennifer Valdez & Amy Klettner PO Box 14721 Detroit Michigan, 48214 Greyhound Friends of New Jersey Contact: Maria Lutz & Linda Lyman PO Box 4416 Cherry Hill New Jersey, 08034-0669 National Borzoi Rescue Foundation Contact: Ann Marie Wiseman & Barbara Lord PO Box 231 Dix Illinois, 62830 Michigan Greyhound Connection Contact: Susan Bilsky & Ken Mitchell PO Box 725384 Berkley Michigan, 48072-5384 Texas Italian Greyhound Rescue Contact: Robin Toula Hollywood Feed 1415 E. Renner Road Richardson Texas, 75082

rescue@candycanerescue.org | CandyCane Rescue is a registered charity | Number 1179928

Page 5

1. Structure, Governance and Management (continued)

b) Organisational Structure (continued)

United States of America (Continued)

Minnesota Greyhound Rescue 9159 Dalton Court Inver Grove Heights Minnesota, 55076

Fast Friends Greyhound Adoption 14 West Swanzey Road Swanzey New Hampshire, 03446

Contact: Jen Komatsu & Lloyd Komatsu Contact: Sharron Thomas & Amy Roy

Spain

Galgos Del Sol Sierra Del Molar, No 2 San Javier Murcia, 30730

Contact: Tina Solera

China

Plush Bears Shelter Contact: Lian Xiaodan Miaoyin Miaoshan Nursing Garden Golden Tiger Village Erlong Township Taonan City Baicheng City Jilin Provence

Candy Cane Rescue advisors are as follows:

Accountant MHA Macintyre Hudson Boundary House 4 County Place Chelmsford CM2 0RE Contact: Cara Miller, Partner

rescue@candycanerescue.org | CandyCane Rescue is a registered charity | Number 1179928

Page 6

1. Structure, Governance and Management (continued)

In the 12 months up to 31 December 2020 there were three new additions to the Board of Trustees to strengthen the charity’s ability to support the increasing demands placed on the organisation having charitable status, Jenna Harris, Georgina Keenan and Karen Hassan.

Appointment of Trustees

During 2020 a formal procedure was put in place to ensure that all recommendations for new trustees are provided in writing to all trustees, with explanation of the skills that they can provide and how they can benefit the charity. The procedure will be as follows:

Decision Making

All decisions made by the trustees must be made either in person or electronically by email; the trustees are responsible for all decisions within the charity although have delegated the following roles to volunteers:

All trustees decisions are undertaken on a majority vote basis; if there are an even number of trustees the Chair Trustee will have the deciding vote. All decision making is to be documented in writing.

Where a trustee is unable to fulfil their tasks, refuses to or repeatedly does not respond to the other trustees in a timely manner within a period of three months, without reasonable excuse, then the other trustees may raise the matter with the trustee in question and seek a resolution which may require that his or her office be vacated.

Arrangements for Setting Pay and Remuneration of Key Management

When setting the remuneration of the key staff the trustees benchmark against data provided in the Harris Hill Annual Salary Report. An annual review of all salaries is made to ensure that the remuneration provided is fair and reflects the responsibility and role involved.

rescue@candycanerescue.org | CandyCane Rescue is a registered charity | Number 1179928

Page 7

2. Objectives and Activities

a) The Aims of Candy Cane

The aim of Candy Cane originally was to rescue as many dogs as possible from the Chinese meat market, initially in batches of 10, and being the only greyhound rescue in China there is significant supply. The charity, and its network of Partners, has grown exponentially, at a rate faster than anticipated, with rescues expanding beyond China to other Asian countries plus some European countries, although the Chinese operations continue to account for 95% of its operations.

Greyhounds are exported from Britain, Ireland and Australia by breeders and owners to race in China and are kept in the most awful conditions with no animal welfare laws. When they have outlived their usefulness many end up in the meat trade to be beaten, hung, boiled or skinned alive.

When Candy Cane Rescue’s namesake ‘Candy’ was killed by another dog in a rescue centre, just the day before she was due to fly to the UK to be rehomed, founder Kerry Elliman decided she needed to have more control over their recovery and care and established Candy Cane Rescue.

In addition to the rescue, Candy Cane is committed to providing the best veterinary care to help improve survival rates and also provide a support network for the dogs both whilst in the charity’s care and also once they have been rehomed in places which can provide commitment and nurturing as required. The charity takes pride in ensuring that all dogs will realise a life that they had only been able to dream of before and educating fosters, adopters and the wider public on how to understand and care for the hounds.

These dogs are often traumatised and have suffered unimaginable abuse. They have never been shown love, are not toilet trained, have never walked on a lead, have never gone up stairs and do not understand day to day noises such as televisions and hoovers.

Hounds are also unique from other dogs; they have very little body fat, just one layer, and this makes it difficult for them to regulate their body temperatures. They feel the cold and also overheat when the weather gets warmer. Coats need to be worn when it is cold or wet cooling coats in the summer.

Hounds love their comfort; sadly the Candy Cane Rescue hounds have come from situations where they have never had a bed and will quite often have poor coats due to how they have been living.

To mitigate stress for the dogs as much as possible Candy Cane aim to improve the speed of rehoming, subject to quarantine rule restrictions; due to the reduced time to quarantine dogs for transfer to the US where possible most dogs will be rehomed in the US rather than the UK.

rescue@candycanerescue.org | CandyCane Rescue is a registered charity | Number 1179928

Page 8

2. Objectives and Activities (continued)

Rescue

Candy Cane rescues dogs from meat markets, breeders, trucks, shelters, underground racetracks, ex police working dogs, strays or any other situations that a dog needs help from and although Candy Cane accommodates all dog breeds sighthounds are always rescued first.

Many of the dogs are sourced through local activists in China that request for help rescuing the dogs and are purchased at the slaughter houses and meat markets, with the price set according to weight; for smaller dogs (eg whippets) it’s around £50 and a full size greyhound is £100.

Transfer to Safe Holding Shelter / Vets

As soon as dogs are put under Candy Cane Rescue they are sent to a safe holding shelter or to vets for care, depending where the dog is, and bloods are taken.

Health Check Ups

The dog travels to a vet as soon as possible where they will undergo a routine health check-up, vaccinations, spay/neuter, dental and any other treatment they need. Some of the hounds have injuries, skin problems, broken bones. Whatever their health problems Candy Cane Rescue will ensure that they are treated for their needs.

Routine health check-up includes Blood test Canine parvovirus Ag test Canine distemper Ag test Canine coronavirus Ag test Stool test (check for internal parasites) CDV/CPV/CCV antibodies test Physical examination

Vaccinations include Nobiva kennel cough vaccine x 1 Vanguard plus 5/CV-L x 2 Rabies vaccine Deworming

Spay/castration and dental care includes Pre operation examination Spay surgery for females Castration surgery for males Dental prophylaxis

All of this takes a minimum of 21 days boarding at the vets, sometimes longer if they have more serious health problems or injuries.

rescue@candycanerescue.org | CandyCane Rescue is a registered charity | Number 1179928

Page 9

2. Objectives and Activities

Transfer to Boarding in China

Once dogs have completed treatment and been given a clean bill of health, they then go into boarding and continue their quarantine:

Dogs travelling to UK 3 months quarantine Dogs travelling to US 30 days quarantine

Once discharged from the vets care the dogs are matched with rescues that are best placed to continue their care and where to be repatriated, either UK, Europe or US. Whilst in China the dogs are trained to walk on a lead and are assessed as much as possible with people, children, other animals (such as cats), and around food and toys.

Transfer Abroad

Sadly, not all the dogs that are rescued make it to their forever homes due to illness or injuries that cannot be treated. This is one of the hardest parts of our rescue. However, we take comfort from knowing they have passed away finally experiencing love and kindness, something most of them have never experienced in their lifetime.

At the start of 2020 we had identified a significant number of points to address to improve both the operational efficiency and income generation of the charity:

rescue@candycanerescue.org | CandyCane Rescue is a registered charity | Number 1179928

Page 10

2. Objectives and Activities (continued)

c) Strategies to Achieve Aims of Charity (continued)

In 2020 due to the Coronavirus pandemic many of these activities had to be put on hold due to unforeseen lockdowns and travel restrictions, inability to raise funds and the general uncertainty created by the ongoing pandemic and the ever changing rules and regulations that were required to be followed.

The main criteria, in pre-pandemic years, used to assess the success of the charity’s activities were the number of dogs rescued, brought back to full health and rehomed.

The benchmark criteria for 2020 changed due to the pandemic and focused on caring for the dogs long term at the vets and shelters until the pandemic restrictions were fully lifted, and being able to fund the increased costs associated with this without the ability to carry out normal fundraising activities.

Simultaneously, success for the year can also be measured by the improvements to the operational structure of the charity which will have long term benefits to the charity in the future.

rescue@candycanerescue.org | CandyCane Rescue is a registered charity | Number 1179928

Page 11

2. Objectives and Activities (continued)

Candy Cane, like any charity, prospers from its network of volunteers, both in the UK, China and through its partner rescues in the US and Europe.

Roles of volunteers in Candy Cane can vary from walking the dogs, carrying out fundraising activities, administration roles, updating social media, fostering, doing homechecks to verify suitability of a potential home for a dog and helping set out policies and guidelines. The time involved for each individual volunteer can differ depending on their role and location; a summary of the main volunteer roles is set out below:

Administration

In this digital and connected age, most individuals use the Internet as their preferred method of sourcing information. Therefore the role of the administrator is vital in ensuring that the Candy Cane website remains as relevant and up-to-date as possible.

The primary duties of the administrator are updating the web page with the latest news and events concerning the charity. This is to keep people informed about the work performed in China including the many rescue missions.

The page is regularly updated with full details of any dogs available for adoption, charting their journey from rescue through to final adoption. Details of the dogs are presented in order to best match a prospective adopter with the correct dog.

The charity organises many fund-raising events both in the UK and abroad. Details of these events are published on the web page. Anyone looking at the page can easily work out what events are taking place, where they are and how to take part and / or donate.

In addition articles are published on the raising of charitable funds and their distribution.

Other duties of the administrator pertain to the organising of events such as street, shop collections, working closely and liasing with Local Authorities. This is to ensure that all relevant permits are obtained and any regulations adhered to. Risk assessments are performed to ensure the safety of volunteers, any dogs involved and the general public as a whole.

Flight Volunteer

The role of the flight volunteer is to escort the rescue dogs safely from the location they are in, to new destination. i.e. Beijing to UK and responsibilities and duties include the following:

rescue@candycanerescue.org | CandyCane Rescue is a registered charity | Number 1179928

Page 12

2. Objectives and Activities (continued)

Flight Volunteer (continued)

The role of the flight volunteer is to escort the rescue dogs safely from China to the UK or the US and responsibilities and duties include the following:

Dog Walking

In addition to providing exercise the role of the dog walker is to provide the dogs with an opportunity to socialise safely in an environment that is strange to them (new Country, house) and to allow the volunteers to assess the behaviour of the dogs, both when on their own and with other dogs, with the aim to assess their needs and ensure that their adoption profiles are accurate to enable them to be matched with the right family.

In agreeing to help walk Candy Cane Rescue dogs whether as a volunteer dog walker or a foster family the following points are essential:

Home Checker Co-Ordinator

The home checker co-ordinator must liase with all home checkers nationwide and ensure a prompt and effective service and thereby reduce the time the dogs are waiting for their forever homes. The role of the home checker co-ordinator includes the following:

To carry out the home check role the following needs to take place:

rescue@candycanerescue.org | CandyCane Rescue is a registered charity | Number 1179928

Page 13

2. Objectives and Activities (continued)

e) Volunteers (continued)

Home Checker

Once a home check appointment has been made the home checker is to visit the property, check for any potential concerns, complete the home checker questionnaire and return the completed document to the home checker co-ordinator. No recommendations to the potential adopting or foster family should be made during the property visit.

Subject to a successful home check the home checker will arrange a follow up visit 6-8 weeks after homing to check on the welfare of the dog and report back to the rescue on the findings including any concerns, if any.

This voluntary role is vital to ensure that we give our dogs and their new owners the best chance of success.

Candy Cane do not currently benefit from any grant funding but it is something the charity will consider should an appropriate opportunity arise. Due to the ongoing pandemic throughout 2020 opportunities to apply for grant funding have been restricted with most grants available only for charities with different characteristics to Candy Cane Rescue.

We will keep abreast of grant opportunities that may arise in the future.

rescue@candycanerescue.org | CandyCane Rescue is a registered charity | Number 1179928

Page 14

3. Achievements, Performance, Risks

a) Achievements

The period to 31 December 2020 was extremely challenging and frustrating for the charity due to unforeseen restrictions, funding difficulties and operational obstacles that had to be overcome in relation to Covid-19.

Number of Dogs Cared For

At the start of 2020 we had 246 dogs in care at our Chinese shelters but due to travel restrictions we could not repatriate the dogs. The dogs were instead cared for in our shelters, which in itself created significant additional costs for veterinary care and welfare costs, and during 2020 we had 274 dogs under our care at the highest capacity. A knock-on effect was that it was impossible to rescue more dogs as our shelters were at maximum capacity.

No dogs were able to be re-homed in the UK but we did successfully repatriate 21 dogs to the US at the end of the year, working together with our US partner organisations, despite significant operational and logistical obstacles that had to be overcome, such as being restricted to use of cargo flights.

Fundraising and Awareness

Numerous events, both fundraising and to raise awareness of the charity’s plight, had to be cancelled, including a greyhound event in Philadelphia planned in April 2020 to cement and grow relationships with our US Partner organisations and their supporters.

Fundraising was extremely challenging during 2020, as with all charitable organisations, but despite this Candy Cane still managed to raise over £400k.

Various initiatives were commenced during the year including the following:

Increased use though of social media platforms also enabled Candy Cane to maintain a presence and increase awareness of the aims of the charity to both existing and new followers.

rescue@candycanerescue.org | CandyCane Rescue is a registered charity | Number 1179928

Page 15

3. Achievements, Performance, Risks (continued)

a) Achievements (continued)

Organisational and Operational Developments

Throughout 2020 steps were taking to improve the efficiency of the charity’s operational matters with consideration given to the following:

b) Performance

Candy Cane has performed as well as could be expected in such challenging conditions but has been running at a loss during 2020 largely due to increased boarding and veterinary fees in China and reduced fundraising activities. We would have liked to have repatriated more dogs than were possible but external factors prevented this from happening.

Although running at a loss in 2020 the financial position can be addressed in 2021 once restrictions relax and fundraising activites can recommence. Operational procedures implemented during 2020 will also help improve efficiencies within the charity.

rescue@candycanerescue.org | CandyCane Rescue is a registered charity | Number 1179928

Page 16

3. Achievements, Performance, Risks (continued)

During the accounting period we have identified a number of risks to Candy Cane which need to be addressed in the next period. The risks identified are as follows:

Covid-19

Clearly Covid-19 has had a significant on the charity’s ability to rescue, care for and repatriate dogs and a continued risk of Covid-19 are new variants which add to the uncertainty surrounding travel, health concerns and logistics of moving dogs. Restrictions to Chinese borders will also impact on the ability to develop further relationships with organisations, veterinary practices and volunteers within China.

Succession Planning

Succession planning is a risk to the charity, notably the reliance on a small number of individuals within China. Without the ability to travel to China and develop these relationships further the risk will remain and how quickly this can be addressed will largely be determined by the continued pandemic. Direct links also need to be created between the UK operation and the veterinary practices in China to improve auditable channels for all correspondence such as invoicing. This can only be addressed once China opens up the borders with overseas travellers.

Illnesses and Diseases of Dogs

Many of the dogs rescued are in very poor health and they have never been vaccinated. Although Candy Cane keeps them at trusted vets until they are well, strong and fully vaccinated for travel, there is always a risk of underlying conditions which have not been picked up until they reach the UK or US, largely due to the fact the vetinerary care in China is less equipped than in the West.

Discrediting by Pro-Racing Communities

Over the years Kerry Elliman has been discredited for her tireless work in raising awareness of the plight of ex-racing dogs being sent to China from the UK. This campaigning, which is not carried out through Candy Cane, has led to false accusations of theft and being a liar, and although all incidents are reported to the police, including threats made to Kerry and her family on Christmas Day 2020, continued social media posts spreading false information could be harmful to the charity and influence decisions of donors and adoptors, by association.

rescue@candycanerescue.org | CandyCane Rescue is a registered charity | Number 1179928

Page 17

4. Financial Review

The total income generated during 2020 was as follows:

Unrestricted Funds £388,966 Restricted Funds £36,086 Total Funds £425,052

Total expenditure for the year was £510,496 creating an operational deficit of £85,444 for the year.

Reserves policy:

Candy Cane does not hold any investments or real estate assets. There are currently no reserves in place but as a charity our policy for reserves going forward is to ensure that we have two month’s worth of cash in the bank to cover immediate operational costs such as salaries, tax liabilities and consultant costs.

The total funds held as at 31 December 2020:

Unrestricted Funds (£119,614) Restricted Funds £19,132 Total Funds (£100,482)

The charity is addressing the deficit on a number of levels:

  1. Employment of external fundraising consultant.

  2. a. Help broaden the reach and following of the charity

  3. b. Create fundraising campaigns

  4. c. Generate 12 month fundraising programme

  5. d. Improve marketing efficiencies and processes

  6. Expanding Merchandise Offering

  7. Re-Branding of Charity

  8. a. Help improve awareness of charity activities

  9. b. More modern and flexible approach

  10. c. Improve adaptability of logo across different forums

  11. Improve Website

  12. a. Improve ease of fundraising process

  13. b. Cleaner and more user friendly platform

  14. Improvement of Internal Operational Procedures

  15. a. Improve direct links to China operations and suppliers

  16. b. Improved data use and systems

The Financial Statement for period ending 31 December 2020 can be viewed at the end of this report.

rescue@candycanerescue.org | CandyCane Rescue is a registered charity | Number 1179928

Page 18

5. Fundraising

All fundraising to date has been carried out by volunteers or members of the charity including birthday fundraisers through Facebook, other Facebook donation posts specific to stories and dog rescues, volunteers carrying out sponsored events and also raising money through raffles, auctions, Greyt Unite events and the sale of Candy Cane merchandise.

Plans have been put in place to appoint an external fundraising consultant in 2021 to drive and strategise campaigns.

Candy Cane receive enquiries from members wishing to raise money for the charity and so formal procedures including a fundraising pack have been developed to ensure that there is a consistent approach across the whole charity promoting the same, correct message including achievements and aims.

rescue@candycanerescue.org | CandyCane Rescue is a registered charity | Number 1179928

Page 19

6. Plans for Future Periods

The charity’s prime concern in 2021 is the continued welfare of the dogs currently in boarding and to repatriate them as soon as possible once conditions allow, and to wipe out the current financial deficit. To help achieve continued success in the future we have identified a number of matters to address in 2021:

7. Public Benefit

The trustees confirm that they have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission in exercising their powers and duties. The public benefit of the charity's activities are outlined under 'Objectives and Activities' above. All activities have been undertaken to further the charity's purpose as per its Constitution.

Approved and signed on behalf of the Charity trustees

…………………………………………… Maura Berrini Chair Date: �����������������

rescue@candycanerescue.org | CandyCane Rescue is a registered charity | Number 1179928

Page 20

CANDY CANE RESCUE

INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

Independent examiner's report to the Trustees of Candy Cane Rescue ('the Charity')

I report to the charity Trustees on my examination of the accounts of the Charity for the year ended 31 December 2020.

Responsibilities and basis of report

As the Trustees of the Charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the 2011 Act').

I report in respect of my examination of the Charity's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the Charity's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants, which is one of the listed bodies.

Your attention is drawn to the fact that the Charity has prepared the accounts in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

I understand that this has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the Charity as required by section 130 of the 2011 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do 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:

Dated:

Cara Miller ACCA

Boundary House, 4 County Place, Chelmsford, Essex, CM2 0RE

Page 21

CANDY CANE RESCUE

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020

Note
Income from:
Donations
3
Charitable activities
4
Other trading activities
5
Total income
Expenditure on:
Charitable activities
6
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
31 December
2020
£
381,495
3,240
4,231
388,966
493,542
493,542
(104,576)
(15,038)
(104,576)
(119,614)		 Restricted
funds
31 December
2020
£
36,086
-
-
36,086
16,954
16,954
19,132
-
19,132
19,132		 Total
funds
31 December
2020
£
417,581
3,240
4,231
425,052
510,496
510,496
(85,444)
(15,038)
(85,444)
(100,482)		 Total
funds
Period ended
31 December
2019
£
505,548
3,421
-
508,969
524,007
524,007
(15,038)
-
(15,038)
(15,038)

The Statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The notes on pages 24 to 35 form part of these financial statements.

Page 22

CANDY CANE RESCUE

BALANCE SHEET AS AT 31 DECEMBER 2020

Note
Fixed assets
Tangible assets
10
Current assets
Debtors
11
Cash at bank and in hand
Creditors: amounts falling due within one
year
12
Net current liabilities
Total net assets
Charity funds
Restricted funds
13
Unrestricted funds
13
Total funds		 16,589
34,361
50,950
(152,646)		 2020
£
1,214
1,214
(101,696)
(100,482)
19,132
(119,614)
(100,482)		 -
4,432
4,432
(19,470)		 2019
£
-
-
(15,038)
(15,038)
-
(15,038)
(15,038)

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

................................................ Maura Berrini Chair Date: 21st October 2021

The notes on pages 24 to 35 form part of these financial statements.

Page 23

CANDY CANE RESCUE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. General information

Candy Cane Rescue is a Charitable Incorporated Organisation ("CIO") and is registered with the Charity Commission (Charity Registered Number 1179928) and Registrar of Companies (Company Registered Number CE015123) in England and Wales. The address of the registered office is given in the Charity information on page 1 of these financial statements. The nature of the Charity's operations and principal activities are detailed in the Trustees Report.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

Candy Cane Rescue meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The financial statements are presented in sterling which is the functional currency of the Charity and rounded to the nearest pound.

The comparative financial statements include the period from 14 September 2018 to 31 December 2019. As such, they are not directly comparable to the current year figures.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

2.2 Going concern

The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist, including when considering the impact of COVID-19. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the Charity to be able to continue as a going concern.

2.3 Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

For donations to be recognised the Charity will have been notified of the amounts and the settlement date in writing.

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

2. Accounting policies (continued)

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable 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 and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.5 Tangible fixed assets and depreciation

Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Fixtures and fittings

2.6 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.7 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.8 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, 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.

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

2. Accounting policies (continued)

2.9 Financial instruments

The Charity only holds basic Financial Instruments. The financial assets and financial liabilities of the Charity are as follows:

Debtors - trade and other debtors (including accrued income) are basic financial instruments and are debt instruments measured at amortised cost as detailed in Note 11.

Cash at bank – is classified as a basic financial instrument and is measured at face value.

Liabilities – accruals and other creditors will be classified as financial instruments, and are measured at amortised cost as detailed in Note 12.

2.10 Pensions

The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.

2.11 Fund 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.

Restricted funds are funds 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 costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

2.12 Critical accounting estimates

In the application of the Charity's accounting policies, which are described above, the Trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The Trustees do not consider there are any critical judgements or sources of estimation uncertainty requiring disclosure beyond the accounting policies listed above.

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

3. Income from donations

Unrestricted
funds
31
December
2020
£
Donations
381,495
Total 2019
505,548		 Restricted
funds
31
December
2020
£
36,086
-		 Total
funds
31
December
2020
£
417,581
505,548		 Total
funds
Period
ended
31
December
2019
£
505,548

4. Income from charitable activities

Unrestricted
funds
31
December
2020
£
Easy Fundraising
-
Homing fees
3,240
3,240
Total 2019
3,421		 Total
funds
31
December
2020
£
-
3,240
3,240
3,421		 Total
funds
Period
ended
31
December
2019
£
1,171
2,250
3,421

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

5. Income from other trading activities

Total
Unrestricted Total funds
funds funds Period
ended
31 31 31
December December December
2020 2020 2019
£ £ £
Merchandise sold 4,231 4,231 -

6. Analysis of expenditure by activities

Charitable activities
Total 2019 as restated		 Activities
undertaken
directly
31
December
2020
£
492,152
512,504		 Support
costs
31
December
2020
£
18,344
11,503		 Total
funds
31
December
2020
£
510,496
524,007		 As restated
Total
funds
Period
ended
31
December
2019
£
524,007

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

6. Analysis of expenditure by activities (continued)

Analysis of direct costs

Staff costs
Cost of Goods Sold
Fundraising costs
Cleaning
Consulting
Vet fees
Dog expenses
Dog transport
Purchase of dogs
Rent, rates and utilities
Travel		 Charitable
activities
31
December
2020
£
26,866
21
-
205
16,507
335,358
10,084
25,763
9,200
16,581
51,567
492,152		 Total
funds
31
December
2020
£
26,866
21
-
205
16,507
335,358
10,084
25,763
9,200
16,581
51,567
492,152		 As restated
Total
funds
Period
ended
31
December
2019
£
-
1,254
115
615
20,668
272,617
15,811
100,661
72,886
100
27,777
512,504

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

6. Analysis of expenditure by activities (continued)

Analysis of support costs

Depreciation
Advertising & marketing
Bank fees
Postage, freight & courier
Insurance
Printing & stationery
IT Software and consumables
Telephone & Internet
Governance costs
Currency transaction charges
Sundry		 Charitable
activities
31
December
2020
£
304
1,574
3,926
305
463
7
500
1,053
8,928
219
1,065
18,344		 Total
funds
31
December
2020
£
304
1,574
3,926
305
463
7
500
1,053
8,928
219
1,065
18,344		 As restated
Total
funds
Period
ended
31
December
2019
£
-
145
3,189
113
409
766
531
2,761
3,500
89
-
11,503

All governance costs incurred in the current and prior year relate to independent examiners remuneration, as detailed in Note 7.

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

7. Independent examiner's remuneration

Period
ended
31 31
December December
2020 2019
£ £
Fees payable to the Charity's independent examiner for the independent
examination of the Charity's annual accounts 4,200 3,500
Under-provision of prior year examination accrual 700 -
Fees payable to the Charity's independent examiner in respect of:
Onboarding fees 1,080 -
Software training services 600 -
Payroll services 2,205 -
Software subscription services 143 -

8. Staff costs

Wages and salaries
Contribution to defined contribution pension schemes		 31
December
2020
£
25,625
1,241
26,866		 Period
ended
31
December
2019
£
-
-
-

The average number of persons employed by the Charity during the year was as follows:

Period
ended
31 31
December December
2020 2019
No. No.
Employees 1 -

No employee received remuneration amounting to more than £60,000 in either period.

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

9. Trustees' remuneration and expenses

The Trustees are considered to be the Key Management Personnel of the Charity. During the year, no Trustees received any remuneration or other benefits (2019 - £NIL) .

During the year ended 31 December 2020, no Trustee expenses have been incurred (2019 - £NIL) .

10. Tangible fixed assets

Cost or valuation
Additions
At 31 December 2020
Depreciation
Charge for the year
At 31 December 2020
Net book value
At 31 December 2020
At 31 December 2019		 Fixtures and
fittings
£
1,518
1,518
304
304
1,214
-

11. Debtors

Due within one year
Taxation and other social security
Prepayments and accrued income		 2020
£
3,157
13,432
16,589		 2019
£
-
-
-

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

12. Creditors: Amounts falling due within one year

Other loans
Other creditors
Accruals		 2020
£
35,000
1,064
116,582
152,646		 2019
£
15,970
-
3,500
19,470

During the year, one of the Trustees, Maura Berrini, provided a short-term loan of £25,000 to the Charity. The loan is unsecured, interest-free and repayable within one year.

Another short-term loan of £10,000 was also made to the Charity in the year by a supporter. This loan is also unsecured, interest-free and repayable within one year.

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

13. Statement of funds

Statement of funds - current year

Balance at 1
January
2020
£
Unrestricted funds
General funds
(15,038)
Restricted funds
Dog shelter
-
Total of funds
(15,038)		 Income
£
Expenditure
£
388,966
(493,542)
36,086
(16,954)
425,052
(510,496)		 Balance at
31
December
2020
£
(119,614)
19,132
(100,482)

The Dog Shelter restricted fund represents donations received to fund the purchase, refurbishment and running of a dog shelter in China.

Statement of funds - prior period

Balance at
31
December
Income Expenditure 2019
£ £ £
Unrestricted funds
General funds 508,969 (524,007) (15,038)

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

14. Analysis of net assets between funds

Analysis of net assets between funds - current period

Unrestricted
funds
2020
£
Tangible fixed assets
-
Current assets
33,032
Creditors due within one year
(152,646)
Total
(119,614)
Analysis of net assets between funds - prior period
Current assets
Creditors due within one year
Total		 Restricted
funds
2020
£
1,214
17,918
-
19,132
Unrestricted
funds
2019
£
4,432
(19,470)
(15,038)		 Total
funds
2020
£
1,214
50,950
(152,646)
(100,482)
Total
funds
2019
£
4,432
(19,470)
(15,038)

15. Related party transactions

During the year, one of the Trustees, Maura Berrini, provided a short-term loan of £25,000 to the Charity. The loan is interest-free and repayable within one year. At the year-end £25,000 has been recognised as an outstanding liability.

There were no other related party transactions in either period.

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