RSPCA Bournemouth, New Forest and District Branch
Annual Report and Financial Statements Year Ended 31 December 2020 Charity registration number: 205126
Contents
| Reference and Administrative Details | 1 |
|---|---|
| Trustees' Report | 2 to 3 |
| Statement of Trustees' Responsibilities | 4 |
| Independent Examiner's Report | 5 |
| Statement of Financial Activities | 6 |
| Balance Sheet | 7 |
| Notes to the Financial Statements | 8 to 16 |
Reference and Administrative Details
Trustees Miss P Benwell Mrs C Dennis, Hon. Secretary Mr P Dennis, Treasurer Mr M Goff, Chairman Miss K Mason Mr R Whitham Mr J Lethbridge Mr S O'Connell (appointed 6 April 2020) Other Officers Mrs J Burden, Clinic Manager Principal Office 144 Richmond Park Road Bournemouth Charity Registration Number 205126 Bankers HSBC plc 111 Poole Road Westbourne Bournemouth National Savings and Investments Glasgow GS8 1SB Independent Examiner PKF Francis Clark Chartered Accountants Towngate House 2-8 Parkstone Road Poole Dorset BH15 2PW
Page 1
Trustees' Report
The committee have pleasure in presenting their report and the financial statements for the year ended 31 December 2020. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's trust deed, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice (SORP 2015 FRS102).
STRUCTURE, GOVERNANCE AND MANAGEMENT
The charity is governed by RSPCA branch rules effective 1 January 2003.
The branch is run by an elected committee who receive no remuneration. The committee are elected each year at the general meeting by the members. The committee are obliged to hold branch committee meetings bi-monthly at least, and are both individually and collectively responsible for the management of the branch and its funds, and are, therefore, also trustees.
RISK MANAGEMENT
The trustees have examined the major strategic, business and operational risks to which the Charity is exposed, and can confirm that systems have been established and are in the places to enable the early identification of issues so that the necessary steps can be taken to manage those at risks.
OBJECTIVE AND ACTIVITIES
The objects of the charity continue to be the provision of animal welfare services in the Bournemouth, New Forest and surrounding area. The Charity is an independently run branch of the RSPCA, a nationwide charity.
Financial assistance is given to the public on limited financial means for their companion animals and a veterinary clinic is held five days a week at the branch premises. Other branches of the society and certain other animal charity organisations are helped where necessary.
Fundraising activities are carried on to assist with the cost of this work and volunteers assist the trustees in this respect.
ACHIEVEMENTS AND PERFORMANCE
The trustees are convinced that the achievements of the branch and the performance of the branch satisfy the objects of the charity. The number of animals helped continues to rise.
PUBLIC BENEFIT
The Trustees have given due regard to public benefit when planning the charity’s activities, in accordance with the Charity Commission’s General Guidance on Public Benefit.
The paragraphs above set out our activities, achievements and performance during the year, which are directly related to the objects and purposes for which the charity exists. The charity achieves its principal objects and purposes through providing affordable veterinary care for the public on limited financial means. These benefits are directly related to the aims of the charity and are fully compliant with Principles 1 and 2 of the Charity Commission Principles on Public Benefit.
FINANCIAL REVIEW
The charity is maintained financially by donations, legacies and clinic collections together with branch activities. The Charity maintains an investment portfolio, together with bank deposits upon which interests and dividends are earned. The coronavirus pandemic has had a significant consequence on the finances because of a reduction in veterinary consultations and procedures caused by the cancelation of planned operations etc. it is expected that in 2021 there will be a gradual pick up but nowhere near a normal year.
Page 2
Trustees' Report
Legacy income in 2020 has increased because of one substantial legacy. Clinic Takings have decreased, but overall direct costs have risen. During the year income of £314,974 (2019: £164,267) was received and expenditure totalling £247,905 (2019: £206,213) was made. Investments revaluation gain was £2,409 (2019: £2,642).
PLANS FOR THE FUTURE
It is a key objective to expand the work of the Bournemouth Clinic and to treat more domestic animals where their owners on limited financial means struggle with vet bills, and often cannot afford to have them treated at all. This charity is willing to support financially other RSPCA branches in this part of the country who may be struggling.
RESERVES POLICY
It is the policy of the trustees to maintain free reserves at a sufficient level to cover routine expenditure requirements for a period of 2-3 years if income is not sufficient to meet these outgoings and known commitments for non-routine expenditure and contingencies. At the year end total unrestricted reserves were £632,238 (2019: £562,760) which are deemed sufficient.
The clinic building is old and will need further substantial sums expended on it.
Where possible, as in previous years, the branch will assist other RSPCA branches. This is provided sufficient resources are maintained in this branch. This review is carried out annually by the trustees. As already stated, future legacy income is very uncertain and without that the vital work that is done in the local community would, without doubt, incur a substantial annual deficit. Branch fund raising has been curtailed through lack of volunteers. Donation income includes a substantial annual amount from the national door collections which could be discontinued. The veterinary clinic itself runs at a substantial loss because of the charging policy.
The annual report was approved by the trustees of the charity on 12 April 2021 and signed on its behalf by:
......................................... Mr P Dennis FCA Trustee
Page 3
Statement of Trustees' Responsibilities
The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
The law applicable to charities requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the trustees of the charity on 12 April 2021 and signed on its behalf by:
......................................... Mr P Dennis FCA Trustee
Page 4
Independent Examiner's Report
RSPCA Bournemouth, New Forest and District Branch
I report to the trustees on my examination of the accounts of the RSPCA Bournemouth, New Forest and District Branch 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 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 all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner’s statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of the charity as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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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.
......................................
Michelle Love FCCA (a director of) PKF Francis Clark Chartered Accountants
Towngate House 2-8 Parkstone Road Poole Dorset BH15 2PW
10 May 2021
Page 5
Statement of Financial Activities for the Year Ended 31 December 2020 (Including Income and Expenditure Account)
| (Including Income and Expenditure Account) | ||
|---|---|---|
| Note Income and Endowments from: Donations and legacies 2 Charitable activities 3 Investment income 4 Total Income Expenditure on: Charitable activities 5 Total Expenditure Gains/losses on investment assets Other recognised gains and losses Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 16 |
Unrestricted Total 2020 £ 302,560 9,374 3,040 314,974 (247,905) (247,905) 2,409 69,478 562,760 632,238 |
Unrestricted Total 2019 £ 150,849 10,145 3,273 |
| 164,267 | ||
| (206,213) | ||
| (206,213) | ||
| 2,642 | ||
| (39,304) 602,064 |
||
| 562,760 |
All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2019 is shown in note 16.
Page 6
Balance Sheet
31 December 2020
| 31 December 2020 | ||
|---|---|---|
| Note Fixed assets Tangible assets 11 Investments 12 Current assets Stocks 13 Debtors 14 Cash at bank and in hand Creditors: Amounts falling due within one year 15 Net current assets Net assets Funds of the charity: Unrestricted income funds Unrestricted funds Total funds 16 |
2020 £ 173,269 131,119 304,388 11,108 34,828 303,520 349,456 (21,606) 327,850 632,238 632,238 632,238 |
2019 £ 175,717 128,710 |
| 304,427 | ||
| 14,114 7,088 249,902 |
||
| 271,104 (12,771) |
||
| 258,333 | ||
| 562,760 | ||
| 562,760 | ||
| 562,760 |
The financial statements on pages 6 to 16 were approved by the trustees, and authorised for issue on 12 April 2021 and signed on their behalf by:
......................................... Mr P Dennis Trustee
Page 7
Notes to the Financial Statements for the Year Ended 31 December 2020
1 Accounting policies
Statement of compliance
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
Basis of preparation
RSPCA Bournemouth, New Forset and District Branch is a registered charity, registration number 205126, registered in England and Wales. The address of the charity is given in the reference and administrative details on page 1 of these financial statements. The nature of the charity’s operations and principal activities are described in the Trustees' annual report.
The charity constitutes a public benefit entity as defined by FRS 102.
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 Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
The financial statements are prepared on a going concern basis and under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity and rounded to the nearest £.
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.
Exemption from preparing a cash flow statement
The charity has adopted Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.
Going concern
The financial statements have been prepared on a going concern basis. As explained in the annual report the board have considered the uncertainty relating to the coronavirus pandemic which occurred during the year and the impact on the charity’s operations and finances in the short to medium term. In the opinion of the board, by proactively managing cash-flow the charity has sufficient working capital to continue to meet its financial obligations and pay its liabilities as they fall due for the foreseeable future and therefore the financial statements have been prepared on a going concern basis. The board 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 held for the charity to be able to continue as a going concern.
Page 8
Notes to the Financial Statements for the Year Ended 31 December 2020
Judgements
Freehold property has not been depreciated because the trustees consider the high level of ongoing maintenance extends the life of the asset for an indefinite period. The trustees have considered whether any impairment has occured and are not aware of any events or matters (such as damage or exceptional deterioration) that will require a write down against the carrying value of the property.
Income and endowments
Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.
Investment income is recognised on a recievable basis.
Donations and legacies
Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.
Investment income
Investment income is recognised on a receivable basis.
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
Charitable activities
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Governance costs
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and Trustees' meetings and reimbursed expenses.
Irrecoverable VAT
Irrecoverable VAT is charged against the category of resources expended for which it was incurred.
Page 9
Notes to the Financial Statements for the Year Ended 31 December 2020
Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Depreciation and amortisation
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
Asset class Depreciation method and rate Fixtures and fittings 20% Reducing balance basis
Fixed asset investments
Fixed asset investments, other than programme related investments, are included at market value at the balance sheet date. Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the Statement of Financial Activities in the period of disposal.
Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at the year end.
Stock
Stock is valued at the lower of cost and estimated selling price less costs to complete and sell, after due regard for obsolete and slow moving stocks. Cost is determined using the first-in, first-out method (FIFO).
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustee's discretion in furtherance of the objectives of the charity.
Page 10
Notes to the Financial Statements for the Year Ended 31 December 2020
Pensions and other post retirement obligations
The charity provides a defined contribution plan to eligible employees.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
2 Income from donations and legacies
| 2 Income from donations and legacies |
||
|---|---|---|
| Donations and legacies; Clinic takings Collections - collecting boxes Appeals and donations Legacies |
Unrestricted Total 2020 £ 90,980 67 27,623 183,890 302,560 |
Unrestricted Total 2019 £ 109,776 423 29,831 10,819 |
| 150,849 |
3 Income from charitable activities
| Subscriptions Branch activities Rental income |
Total 2020 £ 418 556 8,400 9,374 |
Total 2019 £ 455 1,290 8,400 |
|---|---|---|
| 10,145 |
Page 11
Notes to the Financial Statements for the Year Ended 31 December 2020
4 Investment income
| Interest receivable and similar income; Interest receivable on bank deposits Other income from fixed asset investments 5 Expenditure on charitable activities Staff salaries Surgery vets and nurses Surgery drugs Rates and water Insurance Heat and light Cleaning Repairs and renewals Property repairs Branch contribution to region Grants for vetinary treatment Advertising Telephone, stationary and post Sundry Depreciation Card charges Donations Software support Garden Payroll Bureau Accountacy |
Unrestricted Total 2020 £ 2,295 745 3,040 Total 2020 £ 43,145 63,504 44,307 2,476 1,280 2,048 90 8,089 3,204 1,378 1,200 - 3,069 1,328 2,448 1,592 60,000 2,601 1,800 446 3,900 247,905 |
Unrestricted Total 2019 £ 2,605 668 |
|---|---|---|
| 3,273 | ||
| Total 2019 £ 39,989 69,362 40,849 2,907 1,308 5,023 355 7,599 10,347 1,378 1,939 1,099 1,791 2,319 3,060 1,343 7,500 2,549 1,800 540 3,156 |
||
| 206,213 |
Page 12
Notes to the Financial Statements for the Year Ended 31 December 2020
6 Analysis of governance and support costs
Governance costs
| Unrestricted funds General £ Independent Examiner’s remuneration 3,900 7 Net incoming/outgoing resources Net incoming/(outgoing) resources for the year include: Depreciation of fixed assets Independent Examiner's fee |
Total 2020 £ 3,900 2020 £ 2,448 3,900 |
Total 2019 £ 3,156 |
|---|---|---|
| 2019 £ 3,060 3,156 |
8 Trustees' remuneration and expenses
During the year the charity made the following transactions with trustees:
Mr P Dennis
£446 (2019: £540) of expenses were reimbursed to Mr P Dennis during the year.
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
No trustees have received any other benefits from the charity during the year.
9 Staff costs
The aggregate payroll costs were as follows:
| Staff costs during the year were: Wages and salaries Social security costs Pension costs |
2020 £ 40,164 2,356 625 43,145 |
2019 £ 37,113 2,350 526 |
|---|---|---|
| 39,989 |
The monthly average number of persons (including senior management team) employed by the charity during the year was as follows:
| 2020 | 2019 | ||
|---|---|---|---|
| No | No | ||
| Charitable | activities | 3 | 3 |
Page 13
Notes to the Financial Statements for the Year Ended 31 December 2020
No employee received emoluments of more than £60,000 during the year
The total employee benefits of the key management personnel of the charity were £25,208 (2019 - £26,039).
The charity offers a defined contribution pension plan to eligible employees. During the year the charity paid pension contributions which totalled £625 (2019 - £526). At the year end contributions of £Nil (2019 - £Nil) were outstanding and included in liabilities.
10 Taxation
The charity is a registered charity and is therefore exempt from taxation.
11 Tangible fixed assets
| Cost At 1 January 2020 At 31 December 2020 Depreciation At 1 January 2020 Charge for the year At 31 December 2020 Net book value At 31 December 2020 At 31 December 2019 |
Land and buildings £ 163,479 163,479 - - - 163,479 163,479 |
Furniture and equipment £ 41,452 41,452 29,214 2,448 31,662 9,790 12,238 |
Total £ 204,931 204,931 29,214 2,448 31,662 173,269 175,717 |
|---|---|---|---|
Page 14
Notes to the Financial Statements for the Year Ended 31 December 2020
12 Fixed asset investments
| 12 Fixed asset investments | ||||
|---|---|---|---|---|
| Other investments Other investments Cost or Valuation At 1 January 2020 Revaluation At 31 December 2020 Net book value At 31 December 2020 At 31 December 2019 13 Stock Stocks 14 Debtors Other debtors Prepayments 15 Creditors: amounts falling due within one year Trade creditors Other taxation and social security VAT grant repayable Other creditors Accruals |
2019 £ 131,119 Listed investments £ 128,710 2,409 131,119 131,119 128,710 2020 £ 11,108 2020 £ 31,581 3,247 34,828 2020 £ 12,136 1,199 3,007 147 5,117 21,606 |
2019 £ 128,710 |
||
| Total £ 128,710 2,409 131,119 131,119 128,710 2019 £ 14,114 |
||||
| 131,119 | ||||
| 131,119 | ||||
| 128,710 | ||||
| 2020 £ 11,108 2020 £ 31,581 3,247 34,828 2020 £ 12,136 1,199 3,007 147 5,117 21,606 |
||||
| 2019 £ - 7,088 |
||||
| 7,088 | ||||
| 2019 £ 7,247 1,252 1,041 31 3,200 |
||||
| 12,771 |
Page 15
Notes to the Financial Statements for the Year Ended 31 December 2020
| 16 Funds Unrestricted funds General Unrestricted income fund Unrestricted funds General Unrestricted income fund |
Balance at 1 January 2020 £ 562,760 Balance at 1 January 2019 £ 602,064 |
Incoming resources £ 314,974 Incoming resources £ 164,267 |
Resources expended £ Other recognised gains/(losses) £ (247,905) 2,409 Resources expended £ Other recognised gains/(losses) £ (206,213) 2,642 |
Balance at 31 December 2020 £ 632,238 |
|---|---|---|---|---|
| Balance at 31 December 2019 £ 562,760 |
Page 16