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2020-12-31-accounts

REGISTERED CHARITY NUMBER: 205154

RSPCA SOUTH EAST AND WEST DEVON BRANCH

REPORT OF THE TRUSTEES AND AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Bush & Co Limited Chartered Accountants 2 Barnfield Crescent Exeter EX1 1QT

RSPCA SOUTH EAST AND WEST DEVON BRANCH

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Page
Reference and Administrative Details 1
Report of the Trustees 2 to 7
Report of the Independent Auditors 8 to 9
Statement of Financial Activities 10
Balance Sheet 11
Statement of Cash Flow 12
Notes to the Financial Statements 13 to 25

RSPCA SOUTH EAST AND WEST DEVON BRANCH

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Charity Name RSPCA South East and West Devon Branch
Charity Number 205154
Address Little Valley Animal Shelter
Black Hat Lane
Bakers Hill
Exeter
EX2 9TA
President Vacant Position
Trustees Mrs C B Allan (Chairman)
Mrs E M Mundy (Secretary)
Mr T Byers Treasurer)
Miss M Wood (Treasurer) (Resigned May 2020)
Mrs A Eyles
Mrs M Hardy
Miss E McPhail
Mrs J Williams
Mrs Heather Shipp (Resigned February 2021)
Senior Staff Mr H Lowson (CEO)
Miss J Evans (Animal Shelter Manager)
Mr C Marshall (Area Retail Manager) Redundant Dec 2020
Mrs B Hollingsworth Aug 2020
Miss M Holland (Community Fundraiser – from December
2020)
Auditors Bush & Co Limited
Statutory Auditors
2 Barnfield Crescent
Exeter
EX1 1QT
Bankers Nat West Bank Plc
59 High Street
Exeter
EX4 3DL
Investment Advisors Barclays Bank Plc
Bridgewater House
Finzels Reach
Bristol
BS1 6BX

Other Names Little Valley Animal Shelter

1

RSPCA SOUTH EAST AND WEST DEVON BRANCH REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees present their report and financial statements for the year ended 31 December 2020.

STRUCTURE AND GOVERNANCE

The Charity is constituted as an Unincorporated Association, which operates as an autonomous Branch of the National RSPCA and is subject to its Branch Rules. It is governed by a Board of Trustees, which is responsible for effective leadership and direction, and which meet monthly to make strategic decisions. Day to day management of the Branch is delegated to the Branch and Finance Manager, the Shelter Manager and the Area Retail Manager who report to the Committee.

Trustee Recruitment and Appointment

A Committee of Trustees is elected at each AGM by the Branch members to govern the charity. Trustees are recruited for their experience, empathy and knowledge of the Charity and to keep the skills and composition of the Trustee body balanced. Succession planning is regularly kept under review. All Trustees give their time voluntarily and receive no benefits from the Charity, although Trustees can claim expenses properly and necessarily incurred in the performance of their duties.

Trustee Induction and Training

New Trustees are given literature on the work of the Charity and the guidance from the Charity Commission on the role of a trustee. Information provided includes the latest financial statements of the Branch and its Minutes, the Branch Rules and the RSPCA’s Animal Welfare Policies. Trustees are encouraged to keep up to date with current issues relevant to their roles.

Trustee Responsibilities

Trustees are legally required to prepare financial statements for each financial year, in accordance with the Charity’s governing document, the Charities Act 2011 and with Accounting and Reporting by Charities: a Statement of Recommended Practice applicable to charities preparing their accounts in accordance with Financial Reporting Standard 102 published October 2014. These financial statements must give a true and fair view of the Charity’s financial activities during the year and of its financial position at the end of the year. In preparing the financial statements the Trustees are required to:

The Trustees are also responsible for maintaining proper accounting records which disclose, with reasonable accuracy, the financial position of the Charity, which will enable them to ensure that the financial statements comply with applicable law, regulations and the trust deed. They are also responsible for safeguarding the assets of the Charity and for taking reasonable steps to prevent fraud or other irregularities. The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Charity’s website.

OBJECTIVES AND ACTIVITIES

The aims of the Charity are to promote kindness and to prevent cruelty to animals by all lawful means. This involves the rescue, rehabilitation and re-homing of mistreated, abandoned and unwanted animals, support for the RSPCA Inspectorate in the Branch area and promotion of the work and objects of the National Society.

2

RSPCA SOUTH EAST AND WEST DEVON BRANCH REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees’ objectives for the year are shaped by these strategic aims, with a view to obtaining income for the benefit of animal welfare in the area by raising funds through the seven charity shops, fundraising and maintaining and improving the value of the Charity’s investments.

The Trustees have paid due regard to guidance by the Charity Commission in deciding what activities the Charity should undertake.

The main activities of the Charity during the year were the operation of the Little Valley Animal Shelter and the re-homing of unwanted animals. The activities also included the provision of veterinary care, micro-chipping, neutering and inoculations and the provision of financial assistance with the cost of veterinary care for the animals of eligible people on state benefits.

PUBLIC BENEFIT STATEMENT

All charities in England and Wales must have charitable aims that are based on providing public benefit and comply with section 4 of the Charities Act 2011. The Trustees have regard to the Charity Commission’s guidance on public benefit. The RSPCA’s founders identified the Society’s primary aim as being to alter the moral feelings of the country and to promote humane sentiment in humans towards animals which gives moral benefit to the human community as a whole.

The following Branch activities during the year constitute clear benefit to the public:

ACHIEVEMENTS AND PERFORMANCE

The kennel rebuild was finished after some delays because of COVID. The new meeting room has proved invaluable for enabling trustees and staff to have socially distanced meetings. Thank you to the staff , who have had to put up with a lot of disruption during the building works.

Our shops were closed for most of 2020, but, in the few weeks they did trade, were quite successful. However, without Government help with business grants and furlough payments, we would have been looking at a very large deficit.

3

RSPCA SOUTH EAST AND WEST DEVON BRANCH REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2020

The Shelter staff continued to work throughout the pandemic, although public access was limited to appointments and outdoor meetings only. Animal numbers remained very low during 2020, but have started to rise since restrictions have started to lift.

The Friends of Little Valley continue to support the work of the Shelter with their generous donations. Because GDPR rules have changed, Jill Brush (Membership Secretary), decided to hand over the membership to our new Community Fundraiser at the beginning of 2021. The Trustees would like to thank Jill Brush for her hard work and dedication as Membership Secretary, a task she has undertaken over the past 12 years.

The Trustees acknowledge that the Branch would be unable to operate effectively for any length of time without the commitment and energy of the many volunteers who donate their time and effort towards furthering the cause of animal welfare. The Trustees would like to extend their thanks to all of them.

2020 has been a difficult year for the Branch, but our investments have started to bounce back, our shops are now open, our new kennels are finished and none of our staff have contracted COVID. We have a new Animal Behaviourist, to help with our more challenging animals, and a Community Fundraiser, who is already proving her worth. We have also joined an employee assistance programme to provide staff with access to confidential advice on any problems they may have.

PRINCIPAL RISKS AND UNCERTAINTIES

The Trustees have assessed the major risks to which the Charity is exposed and have identified four top-level risks:

The Branch continues to take active steps to manage those risks.

4

RSPCA SOUTH EAST AND WEST DEVON BRANCH REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

FINANCIAL REVIEW

The total incoming resources for the year amounted to £1,706,687 (2019: £1,103,549) including legacies of £1,106,939 (2019: £496,325). Expenditure in the year was £945,920 (2019: £928,781). After gains on investments of £32,477 (2019: £134,103) the branch made a surplus of £793,244 (2019: £308,871).

RESERVES POLICY

Reserves are necessary to safeguard the Branch’s future. Revenues can be unpredictable and reserves are important to assist in years where our expenditure exceeds revenue. In addition, the Branch has the responsibility to ensure it has reserves to fulfil capital commitments and meet any costs relating to unexpected emergency repairs to the animal shelter.

Historically the reserves policy of the charity was to hold free reserves (total reserves less fixed assets, designated and restricted reserves) at a level of between one and a half years’ and two years’ expenditure. The rationale being that it was felt prudent to maintain free reserves at this level as the charity relies heavily on donations and legacies, both of which can fluctuate significantly from year to year. However, in view of the pandemic and the impact on our operational income streams (which would have been worse had it not been for government grants, which were in the form of furlough and retail grants) the Board have decided to temporary increase the free reserves policy to hold between two and two and a half years’ expenditure. This temporary slight increase in reserves policy levels is in line with the Charity Commission’s suggested mitigation strategies in these uncertain times and will be reviewed again at the end of each financial year. Using the previous 5 years’ average total expenditure, this is between £1.92 million and £2.40 million.

The levels of reserves are held to support the following areas:

The total reserves at 31 December 2020 were £5,494,922, comprising £403,000 of designated funds and £4,555,922 of general funds. Of the general funds, £2,563,977 are held as tangible fixed assets and so not available to be spent. The remaining balance of £2,527,945 represents free reserves.

This is in excess of our reserves policy by £127,945. This excess will in part be used to help mitigate the financial impact of COVID-19 (mainly decreased investment income and fundraising income).

5

RSPCA SOUTH EAST AND WEST DEVON BRANCH REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

INVESTMENT POLICY

The Charity holds investments in order that the service level provided for animal welfare is maintained should there be a reduction in incoming resources. The Trustees have prepared an investment policy, with the objective of investing in a low to medium risk portfolio which will maximise income, whilst protecting capital. Professional advice is provided by Barclays Wealth Management, who manage the portfolio on a discretionary basis. Meetings are held with them as and when required to review the performance of the portfolio. A combination of stock market investments, together with bank fixed term deposits, meet the requirement for the generation of both income and capital growth, whilst reducing the risk of investment losses in uncertain and volatile markets.

The Trustees have adopted an ethical investment policy that takes all reasonable steps not to hold investments in companies whose activities are not consistent with RSPCA animal welfare policies. In particular, investments are avoided that carry out any testing on animals

The value of the Charity’s investments at 31 December 2020 was £1.16 million (2019: £1.39 million). The total return on all managed investments was a surplus of 4.2% (2019: 13.6%).

FUTURE PLANS

We have completed a £1.4m kennel rebuild. This marks the end of a 10-year build programme which has transformed the fabric and range of our animal welfare and care facilities at Little Valley. Moving forward our plans and new strategy for the future are:

Our plan for 2021.

6

RSPCA SOUTH EAST AND WEST DEVON BRANCH REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2020

KEY MANAGEMENT PERSONNEL

The key management personnel are held to be all of the Trustees and the senior staff listed on the cover sheet.

The pay levels for key management personnel, who are not Trustees, are reviewed by the Trustees and benchmarked against other charities.

On behalf of the Board of Trustees

Mrs Carol B Allan (Honorary Chairman)

7

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF RSPCA SOUTH EAST AND WEST DEVON BRANCH

Opinion

We have audited the financial statements of RSPCA South East and West Devon Branch (the “Charity”) for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet and notes to the financial statements, 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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Use of our report

This report is made solely to the Charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and the regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the Charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. 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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

8

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF RSPCA SOUTH EAST AND WEST DEVON BRANCH

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report.

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of the trustees

As explained more fully in the trustees’ responsibilities statement set out on page 2, the trustees 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 they 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 Charity’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 Charity or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Bush & Co Limited Statutory Auditors 2 Barnfield Crescent Exeter EX1 1QT

Date: 15/09/2021

Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006

9

RSPCA SOUTH EAST AND WEST DEVON BRANCH STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 DECEMBER 2020

Unrestricted Restricted Total Funds Total Funds
Notes Funds Funds 2020 2019
£ £ £ £
Income and endowments from:
Donations and legacies 2 1,190,079 - 1,190,079 539,192
Charitable activities 3 34,639 - 34,639 32,996
Other trading activities 4 358,373 3,975 362,348 496,796
Investments 5 26,245 - 26,245 34,565
Other income 6 93,376 - 93,376 -
___ __ ____ ____
TOTAL INCOME 1,702,712 3,975 1,706,687 1,103,549
___ __ ____ ____
Expenditure on:
Raising funds
Costs of generating voluntary income 7 31,985 - 31,985 21,042
Fundraising trading costs
shop purchases and expenses 8 375,018 - 375,018 395,435
Investment management costs 11,989 - 11,989 11,818
Charitable Expenditure 9 522,953 3,975 526,928 500,486
___ __ ____ ____
TOTAL EXPENDITURE 941,945 3,975 945,920 928,781
___ __ ____ ____
Net gains on investments 15 32,477 - 32,477 134,103
___ __ ___ ___
Net income/(expenditure) 793,244 - 793,244 308,871
Transfers - - - -
___ __ ___ ___
Net Movement in Funds 793,244 - 793,244 308,871
RECONCILIATION OF FUNDS
Total Funds brought forward 4,701,678 - 4,701,678 4,392,807
___ _ ___ ___
TOTAL FUNDS CARRIED FORWARD 5,494,922
____		 -
__		 5,494,922
____		 4,701,678
____

The statement of financial activities includes all gains and losses in the year and, therefore, a statement of total recognised gains and losses has not been prepared.

All of the above amounts relate to continuing activities.

The notes form part of these financial statements

10

RSPCA SOUTH EAST AND WEST DEVON BRANCH

BALANCE SHEET

AS AT 31 DECEMBER 2020

Notes
£
FIXED ASSETS
Tangible assets
14
Investments
15

CURRENT ASSETS
Stocks for resale
16
42,837
Debtors and prepayments
17
824,764
Cash at bank and in hand
947,441
_
1,815,042
LIABILITIES: Amounts falling
due within one year
Creditors and accruals
18
39,912
_
NET CURRENT ASSETS

Total assets less current liabilities

THE FUNDS OF THE CHARITY:
19
Unrestricted funds
Restricted funds

TOTAL CHARITY FUNDS
 2020
£
£
2,563,977
1,155,815
_

3,719,792
52,298
482,493
446,968
_
981,759
52,766
_
1,775,130
_

5,494,922
_

5,494,922
-
_

5,494,922
____
 2019
£
2,386,527
1,386,158
_
3,772,685
928,993
_
4,701,678
_
4,701,678
-
_
4,701,678
____

These financial statements were approved by the Board of Trustees on ……………. and were signed on their behalf by:

Mrs C B Allan Trustee

The notes form part of these financial statements.

11

RSPCA SOUTH EAST AND WEST DEVON BRANCH STATEMENT OF CASHFLOWS

FOR THE YEAR ENDED 31 DECEMBER 2020

Note
Net cash provided by (used in) operating activities
24
Cashflow from investing activities
Dividends, interest and rents
Purchase of fixed assets
Purchase of investments
Sale of investments
Net cash provided by (used in) financing activities
Cashflow from financing activities
Repayment of borrowing
Net cash provided by (used in) financing activities
Change in cash and cash in the reporting period
Cash and cash equivalents at the beginning of the
reporting period
25
Cash and cash equivalents at the year end
25		 2020
£
476,885
26,245
(265,477)
(352,685)
682,007
_
90,090
-
_
-
566,975
481,492
____
1,048,467
____		 2019
£
182,206
34,565
(595,180)
(442,551)
430,329
___
(572,837)
-
-
(390,631)
872,123
____
481,492
____

12

RSPCA SOUTH EAST AND WET DEVON BRANCH NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2020

1. ACCOUNTING POLICIES

Basis of Accounting

The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by 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 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.

The trust constitutes a public benefit entity as defined by FRS 102.

The trustees consider that there are no material uncertainties about the Trust’s ability to continue as a going concern. With respect to the next reporting period, the most significant areas of uncertainty that affect the carrying value of assets held by the Trust are the level of investment return and the performance of investment markets (see the investment policy and performance and risk management sections of the trustees’ annual report for more information).

Incoming Resources

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.

Donations, are recognised when the Trust has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

Legacy gifts are recognised on a case by case basis following the granting of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title to the asset having been transferred to the charity.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally upon notification by our investment advisor of the dividend yield of the investment portfolio.

Grants, including grants for the purchase of fixed assets, are recognised in full in the statement of financial activities in the year in which they are receivable.

Income received as a result of generating funds is recognised when received.

Incoming resources from charitable activities are recognised on the accruals basis and are included net of any VAT that has been charged.

13

RSPCA SOUTH EAST AND WEST DEVON BRANCH NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

Resources Expended

Resources expended are recognised in the period they are incurred and include VAT unless it is recoverable. Expenditure is either allocated on a direct or usage basis.

Expenditure that is directly attributable to raising funds is included in the costs of generating funds. This includes holding fundraising events, running charity shops and purchasing retail goods.

Expenditure attributable to meeting charitable objectives, including the support costs of the animal shelter, is included in charitable activities.

Costs associated with the general running of the charity which are not attributable to meeting charitable objects are classified as support costs.

Allocation of Support Costs

Support costs have been allocated to each activity undertaken by the charity on the basis of an estimate of amount of the costs generated by each activity.

Tangible Fixed Assets

Fixed assets are recorded at cost, assets costing less than £500 are not capitalised. When an asset is received by way of donation it is recorded at its market value on the date of donation.

Depreciation

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value over their expected useful lives on the following basis:

Freehold land - not depreciated
Buildings - straight line over 50 years
Plant and machinery - 15% on cost
Fixtures and fittings - 15% on cost
Motor vehicles - 25% on cost
Computers - 25% on cost

Stocks

Donated stock is valued at the expected proceeds less the expected cost of sales in accordance with the SORP (FRS 102).

Stocks are valued at the lower of cost and net realisable value, after making due allowances for obsolete and slow moving items.

Debtors

Grants receivable and other debtors are included at the settlement amount due. Prepayments are valued at the amount prepaid.

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 opening of the deposit.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation arising from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount.

14

RSPCA SOUTH EAST AND WEST DEVON BRANCH NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

Financial instruments

The charity only has financial assets and 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.

Taxation

The charity is exempt from tax on its charitable activities.

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.

Designated funds comprise 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 can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes, expenditure that meets these criteria is charged to the fund.

Leasing and Hire Purchase Commitments

Rentals payable under operating leases are charged against income on a straight line basis over the period of the lease.

Investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

The Trust does not acquire put options, derivatives or other complex financial instruments.

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

2. DONATIONS & LEGACIES

General donations
Collecting boxes
Legacies		 2020
£
82,026
1,114
1,106,939
_
1,190,079
_		 2019
£
40,126
2,741
496,325
_
539,192
_

There was £nil (2019: £2,000) restricted donations & legacies received in the year.

15

RSPCA SOUTH EAST AND WEST DEVON BRANCH NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2020

3. CHARITABLE ACTIVITIES

Adoptions
Boarding
Vet reimbursement
Membership fees		 2020
£
29,088
3,869
667
1,015
_
34,639
_		 2019
£
26,520
4,832
604
1,040
_
32,996
_

There was £nil (2019: £nil) restricted income from charitable activities in the year.

4. OTHER TRADING ACTIVITIES

Friends of Little Valley Animal Shelter
Shop income (Note 23)
Reception income (Note 23)
Online income (Note 23)
Flag days
RSPCA House to House
Other events
Other income
Shops COVID grants (Note 23)		 2020
£
11,284
174,785
-
8,104
-
50,387
11,131
655
106,002
_
362,348
_		 2019
£
9,622
393,194
4,671
16,920
834
54,008
17,351
196
-
_
496,796
_

There was £3,975 (2019: £4,116) restricted income from trading activities in the year.

5. INVESTMENT INCOME

5.
INVESTMENT INCOME
Dividends and interest from portfolio
Bank interest
There was £nil (2019: £nil) restricted income from investments in
6.
OTHER INCOME
Covid Job Retention Scheme Grant		 2020
£
25,649
596
_
26,245
_
the year.
2020
£
93,376
_		 2019
£
33,405
1,160
_
34,565
_
2019
£
-
_

16

RSPCA SOUTH EAST AND WEST DEVON BRANCH NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2020

7. COSTS OF GENERATING VOLUNTARY INCOME

Events expenditure
Legacy fee
Support costs		 2020
£
-
18,262
13,723
__
31,985
____		 2019
£
450
11,633
8,959
__
21,042
____

There was £nil (2019: £nil) restricted expenditure from costs of generating voluntary income in the year.

8. FUNDRAISING COSTS Shop Purchases and Expenses

Shop purchases
Shop consumables
Staff salaries
Rent
Rates
Light and heat
Telephone and internet
Insurance
Repairs and renewals
Cleaning and waste disposal
Premises expenses
Motor and travelling
Staff welfare
Sundries
Legal & professional
Postage, stationary & computer costs
Depreciation
Shop equipment
Shop building
Motor vehicles
Shop card machine and gift aid tills
Support costs		 2020
£
19,329
412
187,761
45,287
9,205
6,134
1,838
1,700
3,050
4,417
2,735
4,230
207
1,263
2,789
2,559
776
11,518
4,221
10,692
54,895
_
375,018
_		 2019
£
7,388
1,065
196,394
68,975
17,289
9,177
1,599
2,156
2,830
5,722
1,810
4,140
613
4,716
4,224
4,365
1,441
11,517
4,221
9,959
35,834
_
395,435
_

There was £nil (2019: £nil) restricted expenditure from fundraising costs in the year.

17

RSPCA SOUTH EAST AND WEST DEVON BRANCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2020

9. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES Protection and rehoming of animals

Animal welfare
Staff salaries
Staff welfare & training
Rates
Light & heat
Telephone and internet
Insurance
Repairs and renewals
Premises expenses
Cleaning and waste disposal
Motor and travelling
Postage, stationery & computer costs
Bank Charges
Sundries
Legal & professional
Depreciation
Buildings
Plant
Computer equipment
Support costs		 2020
£
64,370
248,297
232
7,859
23,046
3,583
4,002
3,889
2,755
14,877
2,374
5,053
298
3,068
3,297
65,243
6,068
-
68,618
_
526,929
_		 2019
£
62,320
250,685
1,981
7,409
21,009
3,742
2,901
7,107
10,603
18,170
2,333
4,686
370
3,410
3,191
51,828
3,693
253
44,795
_
500,486
_

There was £3,975 (2019: £4,116) of restricted expenditure used in charitable activities.

10. ALLOCATION OF SUPPORT COSTS

Costs of
Generating
Voluntary
Income
Fundraising
Costs
Charitable
Expenditure
£
£
£
Staff salaries
11,246
44,984
56,230
Accountancy
1,082
4,328
5,409
Postage, stationery
& computer costs
603
2,414
3,017
Legal and
Professional
498
1,991
2,488
Bank charges
271
1,085
1,356
Motor expenses
23
93
118
_
_
_
13,723
54,895
68,618
_
_
_		 2020
£
112,460
10,819
6,033
4,977
2,712
234
_
137,235
_		 2019
£
65,582
13,128
4,656
1,191
2,734
2,297
_
89,588
_

18

RSPCA SOUTH EAST AND WEST DEVON BRANCH NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

11. AUDITOR’S REMUNERATION

The auditor’s remuneration consisted of an audit fee of £5,700 (2019: £5,500) and an additional fee for accounting services of £3,100 (2019: £3,000).

12. TRUSTEES' EXPENSES AND REMUNERATION

Trustees’ Remuneration

During the year ended 31 December 2020, Miss M Wood, a trustee, received fees totalling £2,100 (2019: £3,900), in respect of accounting services provided to the charity.

No trustee received remuneration during the year ended 31 December 2020.

Trustees' Expenses

No trustees' expenses were reimbursed for the year ended 31 December 2020 nor for the year ended 31 December 2019.

13. STAFF COSTS

Wages and salaries
Social security costs		 2020
£
522,456
26,062
_
548,518
_		 2019
£
486,760
25,901
_
512,661
_

The average number of employees during the year was as follows:

Fundraising and shop
Charitable activities
Support staff		 2020
£
11
18
4
_
33
_		 2019
£
11
18
4
_
33
_

No employee received emoluments of more than £60,000 during the year.

The aggregate emoluments of key management personnel for the year totalled £131,265 (2019: £88,892)

19

RSPCA SOUTH EAST AND WEST DEVON BRANCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2020

14. TANGIBLE FIXED ASSETS


COST
At 1 Jan 2020
Additions
Reclassification
Disposals

At 31 Dec 2020

DEPRECIATION
At 1 Jan 2020
Charge for year
Disposals
At 31 Dec 2020
NET BOOK VALUE
At 31 Dec 2020

At 31 Dec 2020
 Freehold
Property &
Buildings
Assets
Under
Construction
Fixtures &
Fittings
Plant &
Machinery
Computer
£
£
£
£
£
2,832,618
209,684
37,449
79,913
5,938
1,863
245,192
369
16,800
1,253
454,876
(454,876)
-
-
-
-
-
-
-
-
_
__
__
__
__
3,289,357
-
37,818
96,713
7,191
_
___
_
_
_
673,278
-
34,637
73,914
5,689
76,761
-
776
6,068
201
-
-
-
-
-
_
_
_____
_
_
750,039
-
35,413
79,982
5,890
_
_
_____
_
_
2,539,318
-
2,405
16,731
1,301
_
_
__
__
__
2,159,340
209,684
2,812
5,999
249
_
_
_
_
__		 Motor
Vehicles
£
33,446
-
-
-
_

33,446
_

25,003
4,221
-
_

29,224
_

4,222
_

8,443
_
 Total
£
3,199,048
265,477
-
-
_
3,464,525
_
812,521
88,027
-
_
900,548
_
2,563,977
_
2,386,527
_


20

RSPCA SOUTH EAST AND WEST DEVON BRANCH NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2020

15. FIXED ASSET INVESTMENT

Investments
£
Market value at 1 January 2020 1,351,634
Additions 352,685
Disposals (682,007)
Revaluation 32,477
___
1,054,789
Cash holdings 101,026
____
At 31 December 2020 1,155,815
____

There were no investment assets outside the UK.

The market value of investments is broken down between listed investments of £1,054,789 (2019: £1,351,634) and cash within the portfolio of £101,026 (2019: £34,525)

16.
STOCKS
Stock
17.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
VAT recoverable
Tax refunds
Prepayments
Other debtors
18.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
PAYE and social security
Accruals		 _
 2020
£
42,837
_
2020
£
3,507
2,985
3,806
11,581
802,885
_
824,764
_
2020
£
21,064
10,216
8,632
_
39,912
_		 2019
£
52,298
_
2019
£
1,273
30,316
3,649
17,113
430,142
_
482,493
_
2019
£
23,890
8,389
20,487
_
52,766
_

21

RSPCA SOUTH EAST AND WEST DEVON BRANCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2020

19. COMMITMENTS UNDER OPERATING LEASES

At 31 December 2020 the branch had commitments under non-cancellable operating leases as follows:

leases as follows:
Land and Buildings
2020 2019
£ £
Amounts due in less than one year 49,080 69,980
Amounts due between two and five years 103,200 135,900
Amounts due in more than five years - 13,000

The total of operating lease expenditure recognised in the statement of financial activities during the year was £45,287.

20. MOVEMENT IN FUNDS

2020


Unrestricted funds
General funds

Designated funds
Kennels
IT equipment

Total
unrestricted funds


Restricted funds
Safe
Haven Scheme

Total
restricted funds

Total funds

 Brought
forward
£
4,594,049
107,629
-
_
4,701,678
_
-
_
-
_
4,701,678
___		 Income
Expenditure
£
£
1,702,712
(941,945)
-
-
-
-
_
__
1,702,712
(941,945)
_
___
3,975
(3,975)
_
_
3,975
(3,975)
_
_
1,706,687
(945,920)
_
__		 Gains/
Losses
Transfers

£
£
32,477
(295,371)

-
(107,629)
-
403,000
_
_

32,477
-

_
_

-
-
_
_

-
-
_
_

32,477
-

_
__
 Carried
Forward
£
5,494,922
-
403,000
_
5,494,922
_
-
__
-
_
5,494,922
_

Designated Funds

In previous years trustees designated £463,157 (brought forward 2019) of funds to be used towards the kennel facility project. This was spent on the project during 2019 and was therefore been transferred back into general reserves. During last year, the charity committed to extending the project to include a fifth kennel block, and the trustees designated further funds of £107,629 to cover the remaining cost of the project. The kennels were completed and brought into use this year, and the designated funds were transferred back into general funds to cover this.

22

RSPCA SOUTH EAST AND WEST DEVON BRANCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2019

20. MOVEMENT IN FUNDS (CONTINUED)

As noted in the Future Plans section of the Trustees’ Report, there are plans to invest in various aspects of the charity over the next year. The following amounts have been designated in order to fund these activities:

Restricted Funds

During the year £3,975 (2019: £4,116) was received under the Safe Haven Scheme. This is restricted to use for supporting the running costs of the kennels. All the income was spent on kennel running costs during the year (2019: all spent on running costs).

2019


Unrestricted funds
General funds

Designated funds

Total
unrestricted funds


Restricted funds
Safe
Haven Scheme
Kennel Construction

Total
restricted funds

Total funds

 Brought
forward
£
3,929,650
463,157
_
4,392,807
_
-
-
_
-
_
4,392,807
___		 Income
Expenditure
£
£
1,097,433
(924,665)
-
-
_
__
1,097,433
(924,665)
_
___
4,116
(4,116)
2,000
-
_
_
6,116
(4,116)
_
_
1,103,549
(928,781)
_
__		 Gains/
Losses
Transfers

£
£
134,103
357,528

-
(355,528)
_
_

134,103
2,000

_
_

-
-
-
(2,000)
_
_

-
(2,000)
_
_

134,103
-

_
__
 Carried
Forward
£
4,594,049
107,629
_
4,701,678
_
-
-
__
-
_
4,701,678
_

21. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestricted Funds
Undesignated
Funds
Designated
Funds
Restricted
Funds

£
£
£
Fixed assets
2,563,977
-
-

Investments
1,155,815
-
-

Current assets
1,412,042
403,000
-

Current liabilities
(39,912)
-
-
_
_
__

5,091,922
403,000
-

_
_
__
 2020
Total Funds

£
2,563,977

1,155,815

1,815,042
(39,912)
_

5,494,922

_
 2019
Total Funds
£
2,386,527
1,386,158
981,759
(44,766)
_
4,701,678
_

23

RSPCA SOUTH EAST AND WEST DEVON BRANCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2020

22. RELATED PARTY TRANSACTIONS

During the year, the Branch received all of its legacies and some of its donations which were processed by the Head Office of the Royal Society for the Prevention to Cruelty to Animals. This included £50,387 (2019: £54,008) received from house to house collections.

The charity purchased animal food, drugs and sundries costing £40,081 (2019: £38,946) from the Head Office.

The charity received monies from the Head Office for boarding, veterinary fees and drugs rebate of £4,526 (2019: £5,361).

23.

SURPLUS/(DEFICIT) ON SHOP ACTIVITY

Income from activities of generating funds (Note 4)
Shops COVID grants (Note 4)
Shop staff CJRS income
Shop purchases and expenses (Note 7)
Surplus/(deficit) on shop activity		 2020
£
182,889
106,002
59,911
(375,018)
_
(26,215)
_		 2019
£
414,785
-
-
(395,435)
_
19,350
_

The shops have made a deficit in the period as a result of being closed for parts of the year due to lockdown restrictions.

24. RECONCILIATTION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income for the reporting period (as per the statement
of financial activities
Adjustments for:
Depreciation and amortisation
Dividends, interest and rents
Gains on investments
Loss on sale of fixed assets
(Increase)/decrease in debtors
(Increase)/decrease in creditors
(Increase)/decrease in stock
Net cash provided by (used in) operating activities		 2020
£
793,244
88,027
(26,245)
(32,477)
-
(342,271)
(12,854)
9,461
_
476,885
_		 2019
£
308,871
72,953
(34,565)
(134,103)
2,701
49,476
(81,605)
(1,522)
_
182,206
_

24

RSPCA SOUTH EAST AND WEST DEVON BRANCH

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2020

25. CASH AND CASH EQUIVALENTS IN STATEMENT OF CASHFLOWS

Cash at bank and in hand
Cash held in investment portfolio		 2020
£
947,441
101,026
_
1,048,467
_		 2019
£
446,968
34,524
_
481,492
_

26. CAPITAL COMMITMENTS

Amounts contracted for but not provided for in the financial statements amounted to £nil (2019: £107,269). This related to the construction of the new kennels as detailed in note 19.

25