OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2022-12-31-accounts

Registered number: 04311334 Charity number: 201654

Friends of Animals League (A company limited by guarantee)

Trustees' report and financial statements For the year ended 31 December 2022

Friends of Animals League

(A company limited by guarantee)

Contents

Page
Reference and administrative details of the company, its Trustees and advisers 1
Trustees' report 2 - 7
Independent auditors' report on the financial statements 8 - 12
Statement of financial activities 13
Balance sheet 14
Statement of cash flows 15
Notes to the financial statements 16 - 32

Friends of Animals League

(A company limited by guarantee)

Reference and administrative details of the company, its Trustees and advisers For the year ended 31 December 2022

Trustees Paul Dewdney, Chairman
Charles Johnston, Vice Chair
Elizabeth Cordingley
Fay Hoyland-Sims (resigned 31 December 2022)
Edward Knox, Treasurer for 2022 (resigned 21 January 2023)
Nicholas Ulycz (resigned 10 September 2022)
Cheryl Vernon
Nicolas Bennett, Treasurer for 2023 (appointed 10 December 2022)
Frances Sheehan (appointed 21 January 2023)
Company registered
number
04311334
Charity registered
number
201654
Registered office
Jail Lane
Biggin Hill
Kent
TN16 3AX
Independent auditors
Kreston Reeves LLP
Chartered Accountants
Statutory Auditor
37 St Margaret's Street
Canterbury
Kent
CT1 2TU

Page 1

Friends of Animals League

(A company limited by guarantee)

Trustees' report For the year ended 31 December 2022

The Trustees present their annual report together with the audited financial statements of the Friends of Animals League for the year ended 31 December 2022. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Since the company qualifies as small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Objectives and activities

a. Objective

The primary objective of the Friends of Animals League (FOAL) is to relieve the suffering of animals. The mission of FOAL is to take in as many animals as can be properly cared for, restore them to health and, where possible, find them good new homes or provide sanctuary and safety for life.

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

Achievements and performance

a. Key performance indicators

At the year-end our net deficit was £200,419 which compares to a net surplus of £591,172 for the previous year. With general funds at the year-end of £1,668,361 (2021: £1,865,594) and net current assets of £749,422 we remain in a secure financial position at the end of 2022. The main income stream in 2022 remained legacies (£568,095 compared to £1,058,737 in 2021) although the figure was not as high as 2021. Supporter donations reduced by 20% in 2022, no doubt caused by the economic situation in the country, but remain at broadly the level received before the Covid pandemic. We also had to cancel the annual Country Festival for the first time due to the extremely high temperatures in the summer and the main kennel block refurbishment was completed.

The Trustees recognise that legacy income is unpredictable and remain committed to diversifying FOAL’s fundraising activities to ensure the long-term future of the charity. The Commercial Director position has not been renewed in 2023 due to the financial position of the charity, but a fundraising group comprising trustees and staff has been created to focus on new income opportunities.

The net profit generated by the on-site and off-site retail outlets increased to £111,019 (2021: £65,895) following the end of the pandemic restrictions, coupled with the likely shift in shopping patterns in the general public towards cheaper retail outlets.

Costs have been managed carefully but have risen year on year with increased veterinary costs, the cost of the kennel rebuild and the legal requirement to increase staff salaries. We spent £1,239,918 in 2022 compared to £1,116,282 in 2021 and £990,559 in 2020. The trustees are focused on continuing to exercise robust cost control to manage the material impact inflation will have in 2023 as best possible.

Page 2

Friends of Animals League

(A company limited by guarantee)

Trustees' report (continued) For the year ended 31 December 2022

Achievements and performance (continued)

b. Review of activities and future plans

The financial year ending December 2022 remained relatively challenging for FOAL as it was for many charities as we had to navigate the unpredictable impact of very high inflation and reduced supporter disposable income. The Management team and staff were agile and effective in their approach and our volunteers were again dedicated and committed to helping FOAL achieve its objective of providing sanctuary for animals in need despite the challenges. Their hard work and dedication are greatly appreciated by the Trustees and by the animals who ultimately benefit greatly from it. We continued to benefit from legacy donations in 2022 which continue to show how the work FOAL undertakes resonates with the local community. Those legacies ensure the financial stability of the charity and offer the trustees and farm management funds to invest carefully for the future benefit of FOAL and its beneficiaries.

Ensuring the long-term financial security of the farm remains a top priority for the trustees who acknowledge that reliance on generous and very much welcomed legacy bequests is not a sustainable strategy.

Despite the continued challenges which evolved through 2022, animal welfare remained the top priority and the charity continued to discharge its primary purpose, to provide sanctuary for needy animals, without interruption or degradation. The management team handled the challenges well supported by all staff and volunteers.

The table below shows total re-homed animals over the last 5 years:

Group 2018 2019 2020 2021 2022 Total 22 v
21
Small Animals 202 91 121 147 136 -11
Cats 179 230 225 173 154 -19
Dogs 265 175 143 85 149 64
Totals 646 496 489 405 439 34

Page 3

Friends of Animals League

(A company limited by guarantee)

Trustees' report (continued) For the year ended 31 December 2022

Achievements and performance (continued)

This table shows the movement for 2022:

Re- Returned Returned Returned Returned
Animal Type Admitted homed 2022 2021 2020 22 v 21
Birds 25 3 0 0 0 0
Guinea Pigs 53 54 4 9 2 -5
Small
Rodents		 16 10 0 0 0 0
Rabbits 55 69 12 8 6 4
Cats 164 154 8 25 16 -17
Dogs 150 149 24 18 19 6
Totals 463 439 48 60 43 -12

Animal re-homing has increased from 2021, but is still to reach pre-pandemic levels. Overall animals admitted was up by 98, most of the increase being dogs, underlying the belief that many dogs purchased during lockdown would end up in rescue centres as people went back to work, coupled with the downturn in the economic climate.

In the autumn of 2022 FOAL was approached by the company which produces the “Challenge Anneka” TV programme. The premise of the programme is that a major project is undertaken for the charity, in our case the refurbishment of the main kennel block and outside exercise runs, in a very short space of time and for a cost much less than we could have secured for ourselves. Even though this additional expense was not expected, it was too good an opportunity to miss. The charity spent £106,788 on the project which has been valued at £136,857.

Financial review

a. Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

b. Reserves policy

The change to the reserves policy adopted in early 2022 has not been reversed, although this will be considered in 2023.

The policy ensures we retain reserves equivalent to 3 months expenditure with minimum liquid reserves of £275,000. Reserves at the balance sheet date far exceed the reserves policy level but the Trustees are implementing plans to ensure the future financial sustainability of the charity and remove the current reliance on legacies to generate a surplus.

At the year-end we have total funds of £3,546,348 (2021: £3,746,767). These are split between unrestricted funds which are used for the day-to-day activities of the charity; a designated fixed assets fund which represents our assets which are in use and cannot be easily realised; a restricted fund which is used to cover the cost of rebuilding the kennels and the Foal’s Adoption and Foster in Need restricted fund which is for long term foster care or for animals which have been adopted with recognised medical issues or other long-term problems.

Page 4

Friends of Animals League

(A company limited by guarantee)

Trustees' report (continued) For the year ended 31 December 2022

c. Material investments policy

The Board’s investment policy is to retain the majority of its reserve in a combination of cash across a number of instant access accounts together with longer-term accounts that provide improved rates of interest. FOAL occasionally receives shares, unit trust investments and gilts as part of legacy proceeds and its policy remains to retain such investments as long as they are listed on the London Stock Exchange and are readily realisable should the need arise.

d. Principal risks and uncertainties

The Board have assessed the major risks to which the Charity is exposed in particular those relating to operation and finance of the Charity. We are satisfied that systems are in place to mitigate the Charity’s exposure to major risk. An updated risk register is reviewed on a regular basis by the Board.

Plans for future periods

Alongside the main purpose of the charity, to offer a safe haven for animals in need, the trustees and management team will focus on meeting the short-term funding needs of the farm and building the foundations for a future less reliant on legacy income.

A calendar of fundraising events is in place including the most financially beneficial Country Festival. These events generate immediate revenue and also generate new memberships, volunteers and ongoing financial support from new benefactors. We will continue to optimise the calendar of events and the events themselves to maximise the positive impact they have on FOAL. Ongoing maintenance and small investments in the farms appearance and onsite facilities will also help to optimise revenue from these events and day to day visitors.

Looking longer term the trustees realise the importance of identifying new revenue streams to minimise the reliance on legacies. This can only be achieved by increasing the public awareness of FOAL farm, in particular amongst the younger generation, which will lead to more memberships, sponsorships and visits to the farm. A group of employees will be responsible for increasing the charity’s profile on social media sites and also to introduce new technology to increase donations, including QR codes around the farm linking directly to website donation pages. We will also maximise the PR opportunities from the Challenge Anneka programme.

Page 5

Friends of Animals League

(A company limited by guarantee)

Trustees' report (continued) For the year ended 31 December 2022

Structure, governance and management

a. Constitution

Friends of Animals League is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association.

b. Methods of appointment or election of Trustees

The management of the company is the responsibility of the Trustees who are elected and co-opted under the terms of the Memorandum of Association.

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the company for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial . Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 6

Friends of Animals League

(A company limited by guarantee)

Trustees' report (continued) For the year ended 31 December 2022

Statement of Trustees' responsibilities (continued)

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

Auditors

The auditors, Kreston Reeves LLP, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.

Approved by order of the members of the board of Trustees and signed on their behalf by:

Paul Dewdney Chairman

Date:

Page 7

Friends of Animals League

(A company limited by guarantee)

Independent auditors' report to the Members of Friends of Animals League

Opinion

We have audited the financial statements of Friends of Animals League (the 'charitable company') for the year ended 31 December 2022 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Page 8

Friends of Animals League (A company limited by guarantee)

Independent auditors' report to the Members of Friends of Animals League (continued)

Other information

The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Page 9

Friends of Animals League

(A company limited by guarantee)

Independent auditors' report to the Members of Friends of Animals League (continued)

Auditors' responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Capability of the audit in detecting irregularities, including fraud

The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks.

Based on our understanding of the charitable sector generally, and through discussion with the Trustees and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to health and safety, anti-bribery and employment law. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, taxation and pension legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure and management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the engagement team included:

Page 10

Friends of Animals League

(A company limited by guarantee)

Independent auditors' report to the Members of Friends of Animals League (continued)

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Page 11

Friends of Animals League

(A company limited by guarantee)

Independent auditors' report to the Members of Friends of Animals League (continued)

Use of our report

This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Samantha Rouse FCCA DChA (Senior statutory auditor) for and on behalf of

Kreston Reeves LLP Chartered Accountants Statutory Auditor Canterbury

Date:

Page 12

Friends of Animals League

(A company limited by guarantee)

Statement of financial activities (incorporating income and expenditure account) For the year ended 31 December 2022

Note
Income from:
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
6
Other income
7
Total income
Expenditure on:
Raising funds
Charitable activities
8
Total expenditure
Net (expenditure)/income before net
(losses)/gains on investments
Net (losses)/gains on investments
Net (expenditure)/income
Transfers between funds
18
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2022
£
745,989
62,927
180,176
8,431
15,918
1,013,441
21,903
1,211,235
1,233,138
(219,697)
(21,712)
(241,409)
136,971
(104,438)
3,598,826
(104,438)
3,494,388		 Restricted
funds
2022
£
47,770
-
-
-
-
47,770
-
6,780
6,780
40,990
-
40,990
(136,971)
(95,981)
147,941
(95,981)
51,960		 Total
funds
2022
£
793,759
62,927
180,176
8,431
15,918
1,061,211
21,903
1,218,015
1,239,918
(178,707)
(21,712)
(200,419)
-
(200,419)
3,746,767
(200,419)
3,546,348		 Total
funds
2021
£
1,299,705
51,474
148,008
9,286
30,713
1,539,186
18,775
1,097,507
1,116,282
422,904
168,268
591,172
-
591,172
3,155,595
591,172
3,746,767

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

The notes on pages 16 to 32 form part of these financial statements.

Page 13

Friends of Animals League (A company limited by guarantee) Registered number: 04311334

Balance sheet As at 31 December 2022

2022 2022 2021
Note £ £
Fixed assets
Tangible assets 13 1,826,028 1,733,232
Investments 14 970,898 992,611
2,796,926 2,725,843
Current assets
Stocks 15 2,385 2,638
Debtors 16 435,761 487,069
Cash at bank and in hand 393,700 625,079
831,846 1,114,786
Creditors: amounts falling due within one
year 17 (82,424) (93,862)
Net current assets 749,422 1,020,924
Net assets 3,546,348 3,746,767
Charity funds
Restricted funds 18 51,960 147,941
Unrestricted funds 18 3,494,388 3,598,826
Total funds 3,546,348 3,746,767

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

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

Paul Dewdney Chairman

Date:

The notes on pages 16 to 32 form part of these financial statements.

Page 14

Friends of Animals League (A company limited by guarantee)

Statement of cash flows
For the year ended 31 December 2022
Note
Cash flows from operating activities
Net cash used in operating activities
21
Cash flows from investing activities
Dividends and interest from investments
Purchase of tangible fixed assets
Net cash (used in)/provided by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
22
The notes on pages 16 to 32 form part of these financial statements		 2022
£
(101,170)
8,431
(138,640)
(130,209)
(231,379)
625,079
393,700		 2021
£
108,942
9,286
(2,886)
6,400
115,342
509,737
625,079

Page 15

Friends of Animals League (A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2022

1. General information

Friends of Animals is a charitable company, limited by guarantee, incorporated in England and Wales.

The Charity's registered office is Foal Farm Animal Rescue Centre, Jail Lane, Biggin Hill.

The charitable activities of the charity is to relieve the suffering of animals.

In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.

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 Companies Act 2006.

Friends of Animals League 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.

Page 16

Friends of Animals League

(A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2022

2. Accounting policies (continued)

2.2 Income

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

The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the company has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the company, can be reliably measured.

Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Gifts in kind donated for distribution are included at valuation and recognised as income when they are distributed to the projects. Gifts donated for resale are included as income when they are sold. Donated facilities are included at the value to the company where this can be quantified and a third party is bearing the cost. No amounts are included in the financial statements for services donated by volunteers.

Donated services or facilities are recognised when the company has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the company of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the general volunteer time of the Friends is not recognised and refer to the Trustees' report for more information about their contribution.

On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the company which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Income tax recoverable in relation to donations received under Gift Aid is recognised at the time of the donation.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

2.3 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 on raising funds includes all expenditure incurred by the company to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

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

Page 17

Friends of Animals League

(A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2022

2. Accounting policies (continued)

2.4 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the company; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.5 Tangible fixed assets and depreciation

Tangible fixed assets costing £1,000 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 bases:

Freehold property - Over 50 years
Plant and machinery - Over 5 years
Motor vehicles - Over 3 years
Office equipment - Over 5 years

2.6 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of financial activities.

2.7 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

2.8 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.

2.9 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.

Page 18

Friends of Animals League

(A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2022

2. Accounting policies (continued)

2.10 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 company 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.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.

2.11 Financial instruments

The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.12 Operating leases

Rentals paid under operating leases are charged to the Statement of financial activities on a straight line basis over the lease term.

2.13 Pensions

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

2.14 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 company and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the company 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.

Investment income, gains and losses are allocated to the appropriate fund.

Page 19

Friends of Animals League

(A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2022

3. Income from donations and legacies

Unrestricted
funds
2022
£
Donations
157,269
Legacies
568,095
Grants
-
Memberships and subscriptions
20,625
745,989
Total 2021
1,266,393		 Restricted
funds
2022
£
35,990
-
11,780
-
47,770
33,312		 Total
funds
2022
£
193,259
568,095
11,780
20,625
793,759
1,299,705		 Total
funds
2021
£
196,145
1,058,737
23,960
20,863
1,299,705

4. Income from charitable activities

Unrestricted
funds
2022
£
Animal adoption receipts
38,510
Other income
24,417
62,927
Total 2021
51,474		 Total
funds
2022
£
38,510
24,417
62,927
51,474		 Total
funds
2021
£
30,760
20,714
51,474

Page 20

Friends of Animals League (A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2022

5. Income from other trading activities

Income from fundraising events

Unrestricted
funds
2022
£
Sale of new and donated goods
157,950
Other fundraising activities
20,241
Community fundraising
1,985
180,176
Total 2021
148,008		 Total
funds
2022
£
157,950
20,241
1,985
180,176
148,008		 Total
funds
2021
£
99,743
40,028
8,237
148,008

6. Investment income

Unrestricted
funds
2022
£
Dividends
7,247
Interest
1,184
8,431
Total 2021
9,286		 Total
funds
2022
£
7,247
1,184
8,431
9,286		 Total
funds
2021
£
4,723
4,563
9,286

Page 21

Friends of Animals League

(A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2022

7. Other income

Furlough income
Kickstart income
Total 2021		 Unrestricted
funds
2022
£
-
15,918
15,918
30,713		 Total
funds
2022
£
-
15,918
15,918
30,713		 Total
funds
2021
£
7,970
22,743
30,713

8. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted
funds
2022
£
Charitable activities
1,211,235
Total 2021
1,077,507
Analysis of expenditure by activities
Direct costs
2022
£
Charitable activities
1,024,054
Total 2021
870,490		 Restricted
funds
2022
£
6,780
20,000
Support
costs
2022
£
193,961
227,017		 Total
2022
£
1,218,015
1,097,507
Total
funds
2022
£
1,218,015
1,097,507		 Total
2021
£
1,097,507
Total
funds
2021
£
1,097,507

9. Analysis of expenditure by activities

Page 22

Friends of Animals League (A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2022

9. Analysis of expenditure by activities (continued)

Analysis of direct costs

Staff costs
Depreciation
Animal food and supplies
Veterinary supplies and services
Subcontractor cost
Bad debt written off		 Total
funds
2022
£
747,287
45,845
102,823
116,819
11,160
120
1,024,054		 Total
funds
2021
£
647,407
46,032
83,832
85,779
7,440
-
870,490

Analysis of support costs

Recruitment, welfare and staff training
Rates, light, heat and power
Insurance
Repairs and maintenance
Telephone and fax
IT expenses
Printing, postage and stationery
Subscriptions
Hire of photocopier
Sundry expenses
Vehicle running costs
Advertising
Consultancy and professional fees
Bank charges
Auditors' remuneration
Auditors' fees - non-audit remuneration		 Total
funds
2022
£
1,320
89,266
9,738
43,273
3,331
11,581
2,036
473
6,264
518
6,892
-
5,085
6,344
7,840
-
193,961		 Total
funds
2021
£
9,356
77,256
8,423
74,413
6,741
15,460
1,873
499
3,985
524
6,009
186
9,230
4,962
6,500
1,600
227,017

Page 23

Friends of Animals League (A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2022

10. Auditors' remuneration

The auditors' remuneration amounts to an auditor fee of £7,840 ( 2021 - £6,500 ) , and other services of £ - (2021 - £1,600).

11. Staff costs

Wages and salaries
Social security costs
Pension costs		 2022
£
688,036
40,285
18,966
747,287		 2021
£
605,331
26,201
15,875
647,407

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

2022 2021
No. No.
Average number of employees 40 38

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

Remuneration and benefits received by key management personnel during the year (including employer's national insurance contributions) amounted to £71,957 (2021- £95,305).

12. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2021 - £NIL).

During the year ended 31 December 2022, expenses totalling £5,868 were reimbursed or paid directly to 1 Trustee (2021 - £5,758). This related to purchases for events and shop stock.

Page 24

Friends of Animals League

(A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2022

13. Tangible fixed assets

Cost or valuation
At 1 January 2022
Additions
At 31 December 2022
Depreciation
At 1 January 2022
Charge for the year
At 31 December 2022
Net book value
At 31 December 2022
At 31 December 2021
14.
Fixed asset investments
Cost or valuation
At 1 January 2022
Revaluations
At 31 December 2022
Net book value
At 31 December 2022
At 31 December 2021		 Freehold
property
£
2,709,458
136,857
2,846,315
983,030
40,151
1,023,181
1,823,134
1,726,428		 Motor
vehicles
£
39,829
-
39,829
34,985
4,844
39,829
-
4,844		 Fixtures and
fittings
£
8,730
-
8,730
8,550
90
8,640
90
180		 Office
equipment
£
50,331
1,783
52,114
48,551
759
49,310
2,804
1,780		 Total
£
2,808,348
138,640
2,946,988
1,075,116
45,844
1,120,960
1,826,028
1,733,232
Listed
investments
£
992,611
(21,713)
970,898
970,898
992,611

Page 25

Friends of Animals League (A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2022

15. Stocks

Finished goods and goods for resale
16.
Debtors
Due within one year
Trade debtors
Other debtors
Prepayments and accrued income
17.
Creditors: Amounts falling due within one year
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income		 2022
£
2,385
2022
£
7,508
416,118
12,135
435,761
2022
£
30,767
11,587
21,077
18,993
82,424		 2021
£
2,638
2021
£
129
475,426
11,514
487,069
2021
£
46,777
10,267
20,187
16,631
93,862

Page 26

Friends of Animals League (A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2022

18. Statement of funds

Statement of funds - current year

Unrestricted
funds
Designated
funds
Tangible assets
General funds
Unrestricted
income fund
Total
Unrestricted
funds
Restricted
funds
Kennel rebuild
Animal
ambulance
fund
Goat hard
standing
Stable roof
Storage shed
Wildflower
garden
Ark repairs
Total Restricted
funds
Total of funds		 Balance at 1
January
2022
£
1,733,232
1,865,594
3,598,826
135,327
12,500
114
-
-
-
-
147,941
3,746,767		 Income
£
-
1,013,441
1,013,441
35,990
-
-
4,580
5,000
1,200
1,000
47,770
1,061,211		 Expenditure
£
(45,845)
(1,187,293)
(1,233,138)
-
-
-
(4,580)
-
(1,200)
(1,000)
(6,780)
(1,239,918)		 Transfers
in/out
£
138,640
(1,669)
136,971
(136,857)
-
(114)
-
-
-
-
(136,971)
-		 Gains/
(Losses)
£
-
(21,712)
(21,712)
-
-
-
-
-
-
-
-
(21,712)		 Balance at
31
December
2022
£
1,826,027
1,668,361
3,494,388
34,460
12,500
-
-
5,000
-
-
51,960
3,546,348

Page 27

Friends of Animals League (A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2022

18. Statement of funds (continued)

Kennel rebuild

This fund was set up to cover costs of rebuilding the kennels.

Animal Ambulance Fund

Funding to pay for a new ambulance to transport animals that require vital treatments and procedures.

Vet Bills

The charity received a grant in the year to cover the cost of vet bills for the month of March.

Goat hard standing

A legacy was received in the year to fund a goat hard standing.

Building fund

A legacy was received in the year to be used towards a building or something similar.

Stable roof

A donation was received for repairs to a stable roof.

Storage shed

A donation was received for the construction of a storage shed.

Wildflower garden

A donation was received to develop the wildflower garden.

Ark repairs

A donation was received for repairs to the children's play area.

Page 28

Friends of Animals League (A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2022

18. Statement of funds (continued) Statement of funds - prior year

Unrestricted
funds
Designated
funds
Tangible assets
General funds
Unrestricted
income fund
Total
Unrestricted
funds
Restricted
funds
Kennel rebuild
Animal
ambulance
fund
Vet bills
Goat hard
standing
Building fund
Total Restricted
funds
Total of funds		 Balance at
1 January
2021
£
1,776,378
1,241,702
3,018,080
125,015
12,500
-
-
-
137,515
3,155,595		 Income
£
-
1,505,874
1,505,874
10,312
-
10,000
3,000
10,000
33,312
1,539,186		 Expenditure
£
(46,032)
(1,050,250)
(1,096,282)
-
-
(10,000)
-
(10,000)
(20,000)
(1,116,282)		 Transfers
in/out
£
2,886
-
2,886
-
-
-
(2,886)
-
(2,886)
-		 Gains/
(Losses)
£
-
168,268
168,268
-
-
-
-
-
-
168,268		 Balance at
31
December
2021
£
1,733,232
1,865,594
3,598,826
135,327
12,500
-
114
-
147,941
3,746,767

Page 29

Friends of Animals League

(A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2022

19. Summary of funds

Summary of funds - current year

Designated
funds
General funds
Restricted funds		 Balance at 1
January
2022
£
1,733,232
1,865,594
147,941
3,746,767		 Income
£
-
1,013,441
47,770
1,061,211
Income
£
-
1,505,874
33,312
1,539,186		 Expenditure
£
(45,845)
(1,187,293)
(6,780)
(1,239,918)
Expenditure
£
(46,032)
(1,050,250)
(20,000)
(1,116,282)		 Transfers
in/out
£
138,640
(1,669)
(136,971)
-
Transfers
in/out
£
2,886
-
(2,886)
-		 Gains/
(Losses)
£
-
(21,712)
-
(21,712)
Gains/
(Losses)
£
-
168,268
-
168,268		 Balance at
31
December
2022
£
1,826,027
1,668,361
51,960
3,546,348
Balance at
31
December
2021
£
1,733,232
1,865,594
147,941
Summary of funds - prior year
Designated
funds
General funds
Restricted funds		 Balance at
1 January
2021
£
1,776,378
1,241,702
137,515
3,155,595
3,746,767

20. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2022
£
Tangible fixed assets
1,826,028
Fixed asset investments
970,898
Current assets
779,886
Creditors due within one year
(82,424)
Total
3,494,388		 Restricted
funds
2022
£
-
-
51,960
-
51,960		 Total
funds
2022
£
1,826,028
970,898
831,846
(82,424)
3,546,348

Page 30

Friends of Animals League (A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2022

20. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year

Unrestricted
funds
2021
Restricted
funds
2021
£
£
Tangible fixed assets
1,733,232
-
Fixed asset investments
992,611
-
Current assets
966,845
147,941
Creditors due within one year
(93,862)
-
Total
3,598,826
147,941
21.
Reconciliation of net movement in funds to net cash flow from operating activities
2022
£
Net income/expenditure for the year (as per Statement of Financial
Activities)
(200,419)
Adjustments for:
Depreciation charges
45,844
Losses/(gains) on investments
21,713
Dividends, interests and rents from investments
(8,431)
Increase in stocks
253
(Increase)/decrease in debtors
51,308
Increase/(decrease) in creditors
(11,438)
Net cash provided by/(used in) operating activities
(101,170)
22.
Analysis of cash and cash equivalents
2022
£
Cash in hand
393,700		 Total
funds
2021
£
1,733,232
992,611
1,114,786
(93,862)
3,746,767
2021
£
591,172
46,032
(168,268)
(9,286)
(546)
(361,197)
11,035
108,942
2021
£
625,079

Page 31

Friends of Animals League (A company limited by guarantee)

Notes to the financial statements For the year ended 31 December 2022

23. Analysis of changes in net debt

At 1 At 31
January December
2022 Cash flows 2022
£ £ £
Cash at bank and in hand 625,079 (231,379) 393,700

24. Pension commitments

The charity operates a defined contribution pension scheme for its employees. The pension cost charge for the period represents contributions payable by the charity to the scheme and amounted to £18,966 (2021: £15,875). At the balance sheet date £5,182 was recognised as a liability owed to the scheme (2021: £4,583).

25. Operating lease commitments

At 31 December 2022 the company had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 2022
£
10,419
22,914
33,333		 2021
£
18,213
33,332
51,545

26. Related party transactions

The charity engaged with T Kilsby, the brother-in-law of a trustee, in relation to the provision of labour services. Expenditure in the year was £11,220 (2021: £7,611) with a balance of £960 (2021: £720) owed by the charity as at 31 December 2022.

C Vernon, the mother of a key management personnel, was reimbursed for £549 (2021: £Nil) relating to expenses incurred during volunteering duties. There is no balance owed at the year end.

All year, Mrs L Bennett, wife of Mr N Bennett (Trustee) was employed at the Charity as the Finance Manager. L Bennett's employment, which commenced on 01/10/2020, was made in open competition and before N Bennett's appointment as a Trustee. L Bennett is paid within the normal pay scale for her role and receives no special treatment as a result of her relationship to a Trustee.

27. Controlling party

There is no ultimate controlling party.

Page 32