2020-12-31-accounts

BATTERSEA DOGS & CATS HOME

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

Company Limited by Guarantee Registration Number 278802 (England and Wales)

Charity Registration Number 206394

BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

CONTENTS

REPORT OF THE COUNCIL OF TRUSTEES	3
REFERENCE AND ADMINISTRATIVE DETAILS	24
STRUCTURE, GOVERNANCE AND MANAGEMENT	26
STATEMENT OF RESPONSIBILITIES OF THE COUNCIL OF TRUSTEES	32
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF BATTERSEA DOGS’ AND
CATS’ HOME	33
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES	38
CONSOLIDATED AND CHARITY BALANCE SHEET	39
CONSOLIDATED STATEMENT OF CASH FLOWS	40
NOTES AND ACCOUNTING POLICIES	41

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Report of the Council of Trustees

The Council of Trustees is pleased to present the annual report and financial statements of Battersea Dogs & Cats Home for the year ended 31 December 2020.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and 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.

COVID-19 (Coronavirus) 2020 - 2021

For 160 years Battersea has been here for dogs and cats. We have built a reputation for being a leader in our field, a driver for change and a champion and a voice for vulnerable animals. Since we were founded in 1860 our charity has helped over 3.1 million dogs and cats and to this day, we continue to help the most unfortunate and unwanted dogs and cats in society, not just those that are brought into our care, but animals that we may never meet. We have overcome so many challenges along the way, and it is Battersea’s determination and resilience that has helped us through two World Wars, and in our 160[th] anniversary year, a global pandemic, to continue to be here for dogs and cats who need us.

As the world responded to the COVID-19 pandemic, our supporters rallied, pet owners looked to us for advice, and we used our voice to speak out for the sector, sharing our funds and expertise to help rescues across the UK and overseas. Our passionate and committed staff continued to provide emergency care and support for animals in urgent need, and Battersea worked harder than ever before to champion responsible pet buying and ownership, to prevent animals being poorly bred, cruelly treated, given up, or abandoned. We supported pet owners, continued to change perceptions around rescue, and collaborated with the Government and other charities to further animal welfare, recognising the greater outcomes we could achieve for animals beyond our gates.

Our charity is incredibly grateful to our generous regular donors who have continued, or even increased, their support during such challenging times. We could never have expected our donors to support Battersea in the way they have, and their loyalty to our charity has allowed us to stay resilient throughout the pandemic. This invaluable support is particularly evident through the increasing number of people who choose to give to Battersea in their Will. Legacy income has steadily grown over the past few years and has helped safeguard the future of our charity in a particularly challenging economic climate, giving us the financial security to continue with our ambitious plans to help more dogs and cats beyond our gates.

We know that alongside economic uncertainty, the animal welfare implications resulting from the COVID-19 pandemic could be profound. Increased demand for puppies, kittens, and designer breeds, means thousands more poorly bred animals hitting the UK market, a sharp increase in puppies being imported or smuggled into the UK, and worrying projections on pet abandonment. Battersea is also concerned by the impact of social isolation on our animals, and of owners not seeking or being able to access veterinary treatments.

Careful investment of our income, and further investment in fundraising to diversify our income streams is crucial to ensure we and the wider rescue sector are ready to respond to any potential influx of abandoned animals and to enable us to continue with our ambitious aims to help more dogs and cats beyond our gates.

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Our activities

Battersea’s core operational activities are directed toward improving the lives of dogs and cats, principally those that come directly into our centres, through our intake, assessment, rehoming and clinical activities, but also those beyond our three centres through our work and engagement with key stakeholders and decision-makers in Government on issues of animal welfare, and supporting other rescue centres through the Battersea Academy and our grants programme.

The Trustees confirm that they comply with their duty to have regard to the guidance on public benefit, published by the Charity Commission, when exercising their powers and duties.

Strategic Report

Battersea puts the health and welfare of dogs and cats at the very core of everything we do and in doing so we make a significant difference to the lives of animals through our activities. This is best articulated in our Mission:

We aim never to turn away a dog or cat in need of our help, ensuring they receive the best care possible no matter how long it takes to find them a place to live. We are experts in championing and supporting vulnerable dogs and cats, creating lasting change for animals and those who care for them, wherever they are.

And we remain true to our Vision that every dog and cat should live where they are treated with compassion, care, and respect.

We achieved impact and made a difference through the efforts and commitment of our 555 staff and 947 volunteers, who consistently demonstrate our values of Care, Excellence, Determination, Respect, Integrity and Commitment.

In 2019 Battersea launched its Strategic Plan 2019 – 2023: ‘Here for Every Dog and Cat’. This strategy places great emphasis on using our voice and expertise to make a difference, not just to those animals in our care but to those we may never see, but that are in desperate need of help.

We will substantially grow the number of animals we help by expanding our direct services, improving the effectiveness of the wider animal welfare sector in the UK and internationally through our Academy and Grants programme, using our voice and influence to champion legislative changes, and working to shift public perception of rescue animals through an ambitious behaviour change campaign.

Battersea’s Strategic Plan 2019-2023 is built around five themes:

1. Directly helping more dogs and cats in need: We will deliver a programme of service expansion, innovation, and continuous improvement.

2. Reframing rescue: We will seek to change people’s perceptions towards rescue animals to help more dogs and cats be treated with compassion, care, and respect.

3. Our Voice: We will use our respected, authoritative, and influential position as a leader in the sector to tackle existing and emerging animal welfare issues and to remove barriers to greater pet ownership.

4. Increasing Our Impact: We will extend our impact beyond our physical centres to help more animals by working in partnership with other dog and cat welfare organisations in the UK and around the world.

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

5. Our Enablers: We will ensure our people, income, technology, and systems support the effective delivery of our strategy.

Impact against Battersea’s Five Strategic Themes

Theme 1: Directly helping more dogs and cats in need

The unprecedented nature of the global COVID-19 pandemic forced Battersea to close our centres to public visitors for the first time in our 160-year history, so that we could prioritise the welfare of our staff and animals and remain open for emergency cases and those that needed us the most.

Battersea took the lead in the development of sector-wide, Government-backed operational guidance , providing a framework for animal rescue and rehoming organisations to continue operating legally and safely during the pandemic.

Within our own organisation, a rapid and agile crisis response was implemented with impressive speed and with great consideration for our people and animals. We reduced the number of animals at our centres from a typical 350-400 animals to 85 by the start of the first lockdown, and all planned intake - other than emergency cases – was suspended. Throughout the year, COVID-19 risk levels and Government restrictions and guidelines were constantly monitored, and Battersea’s operating processes were adapted to ensure full compliance and a safe working environment.

Across Battersea, our teams comprise truly exceptional people working at every level whose passion for animal welfare knows no bounds. Their determination to ensure the care of our animals was not compromised meaning that in 2020 we directly helped over 3,000 animals through reuniting them with their owner, caring for them at our sites and in foster homes, or by rehoming them.

Colleagues across Battersea rose to the challenge of adapting to new ways of working, demonstrating great resilience, and coming on site every day to ensure every dog and cat continued to get the treatment, care, love, play and interaction they needed.

After switching to emergency-only veterinary surgeries throughout the start of the pandemic, resumption of standard surgical operations began in May 2020, the earliest of any team in the charity sector. In 2020, our highly skilled veterinary team conducted 2,538 procedures for our dogs and cats. The thousands of operations undertaken cover a wide range of procedures, and we aim to neuter all rehomed animals on site. Last year we neutered 687 dogs and 707 cats.

Intake of new animals was 3,114 across our three centres– down 42% from 5,336 in 2019. We received 1,606 dogs (down 47% from 3,002 in 2019) and 1,508 cats (down 35% from 2,334 in 2019) in 2020. Lockdown-imposed restrictions led to a reduction in our intake, but we also received fewer enquiries from owners seeking to give up their dogs and cats. A comprehensive survey of animal partners and Local Authority Dog Wardens confirmed that this was a nationwide trend, with remarkably few animals being relinquished by their owners.

With fewer animals arriving at our centres, we sought out opportunities to increase Battersea’s direct care for animals by providing support for other charities struggling to provide their usual service. This included establishing a new partnership with the RSPCA to help the dogs and cats that would otherwise have been treated at their hospital in Putney, which closed at the end of September. We also helped Blue Cross following a large backlog of surgical cases

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

post-lockdown at all their London hospitals. Battersea’s clinic team were able to make use of theatre capacity to treat Blue Cross surgical cases on an outpatient basis, and the charity brought 19 dogs to our London centre for veterinary treatment in the two weeks before London went into Tier 4 lockdown.

We also continued to work in partnership with StreetVet , a charity that provides veterinary care to animals belonging to homeless people. We provided temporary boarding for 12 dogs from StreetVet in 2020.

We are immensely proud of the facilities we have across our three centres, and despite a challenging year, a series of development projects were successfully delivered. At our London centre, major development works were completed, including the opening of Tealby’s café , a new reception entrance area, a dog wellness centre and hydrotherapy suite . At our Windsor site, construction of The Duchess of Cornwall Kennels was completed and opened by our Royal Patron. The facility includes a dedicated maternity area and puppy paddock . At our Brands Hatch site, we made improvements to our kennels and cattery and created new grooming and working dog training spaces.

Interest in pet ownership soared in 2020 and unsurprisingly, Battersea experienced sustained, unprecedented rehoming demand for both dogs and cats with many people looking to get a new pet during the pandemic. We quickly adapted our rehoming approach and introduced a number of measures to ensure we could respond to rehoming demand whilst maintaining social distancing.

Investment was made on improving the online rehoming journey for customers, with a new matching tool to find suitable customers. A rehoming appointment system was rapidly scaled-up and we introduced virtual rehoming and rehoming by delivery , which was an instant success and paved the way for a new and highly efficient method of rehoming. A survey of rehoming customers carried out in the summer found that 95% of respondents rated Battersea’s rehoming process as ‘good’ or ‘excellent’. 97% of customer rated our bespoke delivery service as ‘excellent’.

We rehomed 2,539 animals last year , (1,121 dogs and 1,417 cats), across all three centres. Rehoming figures for dogs were down 46% from 2,076 in 2019 and rehoming figures for cats were down 33% from 2,104 in 2019 as a result of reduced intake across our centres.

Our anticipated growth in the development of our Communities programme was impacted by COVID-19 with many key community activities cancelled, and reduced animal intake affecting the number of dogs and cats that could be placed in Communities for onward rehoming. Despite these challenges, we recruited 13 Community Rehoming Volunteers and launched a second community in Ashford , Kent, in September 2020. In 2020, we rehomed 31 animals – 26 dogs and five cats - through our communities in Guildford and Ashford.

Battersea is proud of its non-selective approach to animal intake. Unlike other rescue organisations, we do not turn away a dog or cat based on its breed, age, condition, or any other factor. This approach does however mean that we receive many animals with complex medical and behavioural problems, that rely on us to provide the very best care through our dedicated and highly trained veterinary and behavioural teams, and our dedicated foster carers who were involved in 1,003 foster cases in 2020. Despite the dedication and care provided to every animal who enters Battersea, some are either medically too unwell, or too dangerous to be rehomed, or there are legal reasons which result in us having to put the animal to sleep. We never take this decision lightly and instead work continually to keep these numbers to an absolute minimum. In 2020, 20% of dogs (up from 19% in 2019), and 7% of cats (up from 6% in 2019) brought into Battersea were put to sleep.

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Our charity is not just committed to helping dogs and cats, but also supporting pet owners through any means. In a rapid response to the challenges of the pandemic, Battersea’s website, content, email, and social media strategy were adapted to elevate advice content to provide support for pet owners during a potentially difficult time. A new website section, ‘Make yourself at home’ providing tips and support for pet owners was created, as well as a new pet advice content suite which gained 18,000 subscribers.

We set up a dedicated dog and cat behaviour advice line that dealt with 1,020 enquiries from dog owners. 81% of these cases were positively resolved, resulting in the owner keeping their pet. The Canine Behaviour team provided behavioural advice and support to an average of 85 members of the public each month in 2020, a 40% increase on 2019.

At the end of 2020 we launched online training classes to support a new generation of puppy owners. 57 dogs were helped through Battersea’s virtual puppy training classes after they launched in Q4, and in our survey of attendees, 86% (19) of respondents felt the classes were easy or very easy to participate in online. We plan to offer a greater number and range of classes in 2021.

Theme 2: Reframing rescue

Battersea has a vital role to play in growing the rescue sector and delivering better outcomes for more dogs and cats. With increasing numbers of people buying and selling pets online during 2020, our Rescue Is Our Favourite Breed campaign was vital in ensuring pets are not seen as commodities. We want people to be inspired to think ‘rescue first’ not only when it comes to rehoming but also if they are faced with circumstances that mean they must relinquish their pet.

Plans were rapidly flexed in response to the pandemic to enable us to maintain visibility, relevance, and position Battersea as a trusted source of expertise and advice. During the year, we ran four successful bursts of campaign activity. This featured a new ‘Rescues to the Rescue’ advert launched in June 2020 designed to align with the mood of the nation and ensure Battersea’s cause remained visible. This reached 33.5 million viewers nationally, whilst research and case studies exploring the positive benefits of pet ownership during lockdown gained national press coverage.

In November 2020, we evaluated the impact of the Reframing Rescue campaign, with research showing that 37% of the UK population had heard of #RescueIsMyFavouriteBreed . Of those questioned, 73% claimed that #RescueIsMyFavouriteBreed has started to make them ‘think more openly about age or breed’, and 72% stated that it made them want to find out more about rescue animals, indicating the campaign is starting to shift perceptions of rescue. Seven in 10 people who saw the campaign took a positive step towards rescue and/or Battersea as a result.

Engaging with younger animal lovers is crucial to drive generational change in the way rescue is perceived and supported, and we are working hard to widen our audience base, creating new content and opportunities to reach, inform, and inspire engagement through a growing range of channels and partnerships.

We partnered with our high-profile supporters and Ambassadors in new and uplifting ways to boost the nation's spirits and reach new audiences, alongside creating original content featuring Battersea animals and staff. To reach younger audiences, we created a meme generator and an augmented reality filter on Instagram for #RescueIsMyFavouriteBreed, encouraging user generated content. We added over 130,000 social media followers in 2020, across Facebook, Twitter, Instagram, YouTube, Pinterest, and LinkedIn.

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Battersea’s ITV series, Paul O’Grady For the Love of Dogs continued to raise the profile of rescue. Working within Covid-secure filming guidelines, we delivered a 60 minute ‘Back in Business’ special, focusing on our response to lockdown, which reached 3.3m viewers. A new 3 x 60’ series ‘POGDOGS: What Happened Next’ caught up with rescue dogs from the previous 8 series showing the joy and solace they have brought their owners. Each episode gained 3.4m viewers.

Theme 3: Our Voice

Battersea has a respected, authoritative, and influential voice with a proven record in bringing about policy and legislative change to benefit animal welfare and 2020 was no exception.

In January 2020, we were pleased to see the Animal Welfare (Sentencing) Bill introduced as a Private Member’s Bill, backed by the Government. This calls for an increase in the maximum sentence for animal cruelty from six months to five years in prison. Demonstrating our ability to successfully leverage our political relationships, we organised a Battersea reception in Parliament in partnership with Sir Oliver Heald MP. This was attended by over 100 Parliamentarians including Animal Welfare Minister Lord Goldsmith and Bill sponsor Chris Loder MP, setting us up well for the Bill stages to come. Although the COVID-19 outbreak delayed progress of the Bill, we were pleased that on 28 April 2021, the Animal (Sentencing) Bill completed its passage through Parliament and became law, meaning the maximum animal cruelty sentence will increase from six months to five years.

In Scotland, Members of Scottish Parliament (MSP) passed into law the Animals and Wildlife (Penalties, Protections, and Powers) (Scotland) Act 2020 in June, which makes provision to introduce five-year sentences for animal cruelty in Scotland. This followed three years of proactive lobbying by Battersea with MSPs and officials.

We are one in a network of hundreds of dog and cat rescue organisations, large and small, across the UK, and in 2020 we continued to support our sector colleagues. We set out to better understand the impact of the pandemic on the sector so we could draft guidance to MPs and set out the case for support. This included working in collaboration with the Association of Dogs and Cats Homes (ADCH) on two major sector surveys to understand how rescues across the UK were coping with and responding to the pandemic.

In November we published a new Battersea report to provide evidence of the impact of the pandemic on companion animals. The report makes a strong case for the Government to consider urgent financial support ahead of a potentially challenging period for smaller rescues. The report achieved 250 media mentions across national, broadcast, online and print media, with a total reach of 21m.

We have worked, and will continue to work, collaboratively to ensure high standards of animal care. Collaboration, influencing, and consulting remain staples of our work and examples in 2020 of this approach include:

• forming one part of the secretariat to the All-Party Parliamentary Group on Cats (APGOCATS) alongside Cats Protection and Blue Cross. In 2020 we delivered a joint report into cats and tackling loneliness which was well received by politicians and stakeholders;

• providing support to the Department for Environment, Food and Rural Affairs (DEFRA) for their Petfished campaign against unscrupulous breeders selling puppies or kittens online;

• our leadership of the sector membership body ADCH of which our Chief Executive acted as Chair during the year. We led the establishment of an ADCH Emergency

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Fund and contributed £50,000 to this Fund to supply grant funding to smaller rescues; and

• working with the Canine & Feline Sector Group (CFSG) and Companion Animal Welfare Group Wales (CAWGW) to provide guidance on what can be done legally and what can be safely changed during lockdown. We designed a suite of infographics for the whole sector and used our own social media channels to reach the biggest possible audience of owners and professionals.

Theme 4: Increasing our impact

Battersea has a strategic long-term commitment to increase our impact for animals and to help as many dogs and cats as we can.

Battersea’s work now stretches far beyond our physical centres as we strive to build a better world for dogs and cats, mindful of how we can make a real practical difference to the lives of even more animals. One of the ways we do this is by supporting a great many smaller rescues, shelters, and charities to continue helping animals in need in local communities both in the UK, and beyond. By providing training and financial support to these organisations, we enable them to work effectively, efficiently, sustainably, and to the highest possible welfare standards, and help ensure that Battersea has a positive, lasting impact on even more dogs and cats, year after year. Battersea feels a strong responsibility to help and support other rescues and their animals, and we remain committed to working in partnership with as many organisations working in our field as possible.

In 2020, the Battersea Academy delivered 27 programmes and webinars, which were attended by 467 delegates from 146 UK and international organisations, and 11 dog wardens from five local authorities. As face-to-face training was no longer a possibility from March 2020 onwards in response to COVID-19, our on-site programmes were postponed, and the Academy’s e-learning capabilities were accelerated with considerable content being redesigned for online delivery. In addition to a wider range of animal welfare content for both dog and cat organisations, a range of other topics including fundraising, digital, marketing and strategy development were delivered, some in direct response to the learning needs imposed on organisations by the pandemic. Places offered on our intensive 5-day on-site programmes were re-allocated onto 2021 programmes. Ongoing business development activity continued to identify new organisations in the UK and overseas that might benefit from the Academy. Since it launched in November 2018, the Academy has indirectly helped 6,419 animals worldwide through its intensive programmes only (1,872 in the UK and 4,547 overseas).

We had in 2020, and will continue to have in future years, a positive impact on a greater number of dogs and cats through providing training and financial support to organisations that require it. As a part of the Academy work, we committed to providing funding to other organisations to help more dogs and cats. During 2020, 41 grants were awarded , totalling £450,000. Of these, 10 were international grants to projects in a number of our focus countries of South Africa, India, Sri Lanka, Romania, Bulgaria, and Greece. In addition, Battersea established the Association of Dogs and Cats Homes Covid Emergency Fund on behalf of the ADCH and the sector and made a leadership gift of £50,000. Since Battersea started the Grants programme in 2018, we have indirectly helped 43,100 animals worldwide (30,955 in the UK and 12,145 overseas). A longer-term strategy for the Academy and Grants functions was presented to Trustees in December 2020.

Our Animal Partnerships team works with many different dog and cat charities and rescues all over the country to provide the best outcome for our dogs and cats in need of homes. Last year Battersea took in 308 animals from other animal rescues . Throughout the year, 50 cats were placed in rural outlets such as farms and stable yards. We also worked

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

collaboratively with Cats Protection to trap, neuter, and release 66 feral cats in rural Sussex. Three dogs were placed in working outlets, whilst 33 dogs requiring specialist homes were placed with breed centres.

Theme 5: Our enablers

Throughout 2020, most volunteering roles were suspended to reduce the number of people attending Battersea centres. In total, volunteers contributed 78,461 hours in 2020, down 45% on 2019. During specific periods when restrictions were eased, some cattery and gardening volunteers were able to briefly return. A comprehensive Christmas Retail Volunteer programme involved 31 volunteers who donated 954 hours.

Fostering played a vital role in Battersea’s response to the pandemic and an emergency fostering effort as the country entered lockdown in March 2020 saw a record number of dogs and cats placed in foster care within a month. In total, 699 animals were fostered in 2020, against 789 in 2019, the overall reduction due to reduced animal intake. An additional 37 foster carers were recruited in the year, including 25 from among Battersea staff.

At the end of the year, Battersea had 947 registered volunteers , against 902 in 2019, the increase following the recruitment of Community Rehoming Volunteers in Guildford and Ashford, and an increased number of foster carers.

Our fundraising plans for 2020 were largely impacted as a result of the pandemic. We placed our face-to-face activity on hold, losing the opportunity to meet and recruit new supporters. However, we mitigated the impact by increasing our digital and television presence, both of which produced successful results for Battersea.

Our events programme was also affected with all but one event in the portfolio being cancelled. Despite this, our Muddy Dog Challenge won Bronze in the Charity Awards for ‘Best Mass Participation Event and the team - through excellent stewardship - retained 4,800 Muddy Dog participants to take on the challenge in 2021. In October, a new virtual ‘My Muddy Dog’ challenge received over 2,000 sign ups and raised over £100,000 in income.

Despite multiple challenges throughout the year, we continued to see a strong performance from Individual Giving with 55,000 new regular supporters recruited, and our cash and raffle fundraising activity delivering the best results Battersea has ever achieved.

Fortunately, we have always had many supporters who choose to recognise our charity in their Will, and last year we received record legacy income in excess of £22m. The unanticipated level of legacy income we achieved has ensured that Battersea has not suffered financial loss in the short term, and we are incredibly grateful to our generous regular donors who have continued, or even increased their support during such challenging times.

Our corporate and philanthropic partners supported the work of Battersea in many ways . In 2020, this included securing more than £50,000 in funding specifically in response to COVID-19 and securing Battersea’s largest income partnership to date with Mars Petcare through the ‘Buy 1, Feed 1’ campaign, guaranteeing £125,000 in income. Despite a challenging retail environment, there were some successful campaigns in 2020 which helped drive sales. Christmas was a successful period for Battersea with catalogue sales up 73% on the previous year.

Battersea’s Licensing work continues to grow with nine new licensees accepted in 2020 – representing almost £100,000 in advances and minimum guarantees. In addition, three product ranges were launched in 2020 in Sainsburys, Tesco and Marks and Spencer,

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

comprising 23 products totalling 200,000 units across 441 UK stores.

Battersea played a key role in supporting staff throughout the pandemic . Battersea, like many other charities, had taken advantage of the Government’s Job Retention Scheme to enable us to retain our valued workforce during challenging times. Our charity is reliant on public donations to fund our work and we have a responsibility to spend every penny carefully. In receiving this financial assistance from the Government, we had been able to support our staff who are unable to carry out their work, whilst continuing to use public donations to fund our charitable activities to help dogs and cats at our centres and beyond our gates. The Human Resources team ensured clear processes were in place for reporting and monitoring COVID-19 related absences, and rapidly implemented the furlough scheme to minimise risk for staff and financial impact. A total of 237 staff (45% of Battersea’s employees) were furloughed during 2020.

The change in working circumstances in 2020 for staff both on site and working from home, meant that focus on emotional resilience, mental health, and wellbeing , was critical. Mental Health for Managers training was delivered to all Managers, and 24 Mental Health First Aiders were trained . Battersea also provided Emotional Resilience Workshops and disseminated mental health and wellbeing resources to all staff.

Battersea currently leads the animal welfare sector on a number of diversity metrics. Our median Gender Pay Gap was 8.8% in 2019/20, better than all the other major animal welfare charities who reported their results, and the national average of 15.8%. At the end of 2020, 8% of our workforce identified as being from a Black, Asian, or Minority Ethnic background . This compares favourably to the animal welfare sector, with the next-nearest proportion of BAME staff in an equivalent charity being 4%.

To enable staff to work from home, the capacity of Battersea’s remote working system was rapidly expanded in just two weeks, with IT equipment provided to those in need.

To support our staff’s learning and development needs , work was carried out to transition priority subjects to remote/digital offerings. Battersea’s own online Learning Management System was launched in October 2020 , enabling staff to access learning content at any time and on any device. Since launching, 346 Battersea staff have accessed 45 pieces of content over 1,000 times.

Section 172 statement

The Trustees of Battersea, as those of all UK charitable companies, must act in accordance with a set of general duties. These duties are detailed in section 172 of the UK Companies Act 2006 which is summarised as follows:

A Trustee of a charitable company must act in the way they consider, in good faith, would be most likely to promote the success of the charity for the benefit of its stakeholders as a whole and, in doing so have regard (amongst other matters) to the:

• Likely consequences of any decisions in the long term;

• Interests of the charitable company’s employees;

• Need to foster charitable company’s business relationships with suppliers, customers and others;

• Impact of the charitable company’s operations on the community and environment;

• The charitable company’s reputation for high standards of business conduct; and

• Need to act fairly between members of the charitable company.

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

The following paragraphs summarise how the Trustees fulfil their duties:

Our Rehoming Customers

In response to the restrictions requiring us to limit and carefully manage visitors to centres, we started to conduct rehoming introductions between dogs and cats to prospective customers virtually, and through short videos. These ‘virtual introductions’ have been effective in enabling customers to ‘meet’ multiple animals without visiting a centre. During the initial phases of the first lockdown, we continued to rehome via delivery to customer homes in a Covid-secure way. This has proven so successful that, along with virtual introductions, it is now an established service we offer our customers.

The rehoming teams at all three of the centres have been supported by an upskilled Customer Service team who now engage with all rehoming customers in greater detail, providing swifter access to expert advice. The three centres have also been joined by two additional Battersea Communities in 2020, with Guildford and Ashford now able to care for and rehome animals from the Community volunteer’s ‘foster’ homes.

During the year, Battersea conducted surveys to better understand the rehoming journey. These included online rehoming focus groups, post-registration surveys, and aftercare surveys, to understand Rehomers’ expectations and identify areas of improvement. The research was used to inform a new appointment system across three sites, enabling a more dedicated service for customers in place of the ‘first come, first served’ approach.

Donors

Our supporters and donors are critical to what we do, and we strive to ensure we are engaging them effectively. In 2020 we contacted over 40,000 supporters by telephone to simply thank them, inform them of how Battersea was continuing to work throughout the pandemic and find out how they were. We also kept in touch via mail and email communications to keep our supporters feeling connected and informed about Battersea. We received positive feedback from supporters who welcomed these stewardship calls and continued to show support during the pandemic.

The impact of these stewardship calls led to an increase in donations, fewer direct debit cancellations and improved supporter retention rates. As a result of this success, we will be proceeding with our usual direct marketing programme, including reintroducing legacy communications, in 2021.

Our valued Legacy pledgers and those who have enquired about leaving a gift to Battersea in their Will were sent a range of bespoke newsletters to keep them up to date and informed during the pandemic. During the year, we held three special webinar events which were attended by legacy pledgers, enquirers, donors, and supporters. In 2021, we are planning to hold four further virtual events and hope to host live events later in the year if possible.

Using insight gained through focus groups in 2019, Battersea were able to understand supporter views and reactions on legacy campaigns and designs. As a result, Battersea were able to develop a new TV legacy advert which launched in 2020.

Animal Gifters

Our mission is to never turn away a dog or cat in need of our help and we achieve this through our non-selective intake policy. We appreciate we could not do this without the help and support of the individuals – our Animal Gifters - who trust Battersea to find their dogs and cats a new home. In 2020, whilst intake was lower because of the pandemic, we engaged with our customers to support them whilst remaining at home in self-isolation and during the

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

lockdowns, by providing bespoke advice via our behavioural helpline and offering specific guidance on the Battersea website.

Employees

Battersea engages with its employees consistently and through various channels. Vital to 2020 was the introduction of the All-Staff webinar which was created to engage with staff (including furloughed staff) during lockdown. The webinar included regular updates from the Chief Executive and Directors and provided staff with opportunities to put questions to the leadership team. Feedback from the webinar has been used to inform COVID-19 related decision making and how these decisions are communicated across Battersea.

Using ad-hoc pulse surveys and polls we have been able to continue to improve how we communicate key messages. For example, during 2020, pulse surveys were used to understand staff views around working from home and how they would like to be communicated with. The results of the survey informed future internal communications and decision making around what further training and support was needed for home working staff.

Battersea’s Senior Management Group is a group of Heads of Functions, formed to work with the Executive Team to help deliver key organisational priorities and to take a more strategic organisation-wide leadership role. The group met four times during 2020 and provided recommendations to the Executive Team on how Battersea can retain the benefits gained through new ways of working during lockdown. Key recommendations include a review of how on-site visitors are managed, the appointment of an Environment & Sustainability Officer to drive forward sustainability initiatives, and a review of the current pay and performance review process. These recommendations will be implemented in 2021.

As part of the work to review the rehoming journey – both digital and remote - Battersea engaged with Rehoming teams to understand how improvements can be made to the existing process. The results of interviews and surveys led to improvements in the digital journey through a new appointment system and standardising the remote rehoming process for all sites.

Volunteers and Foster Carers

In response to the impact of COVID-19, Battersea had to adapt how it communicates with volunteers and foster carers to ensure we continue to effectively engage with those volunteers who were temporarily stood down. The Battersea Volunteers Facebook Group was created and has over 250 members, and Battersea revised our onsite learning sessions to become webinars. In total, volunteers and foster carers attended 72 webinars, including a webinar to introduce the new Chair of Council, Paul Baldwin.

In March 2020, the team introduced retrospective diversity and inclusion monitoring for volunteers and foster carers, and established diversity and inclusion monitoring as part of the application process for all future volunteers. Battersea brought forward the Investing in Volunteers Accreditation process for Good Practice in Volunteer Management to 2020 and received the Investing in Volunteers Award for the second time.

Communities

The impact of COVID-19 meant that plans to develop the Guildford Community through recruiting Community Rehoming Volunteers (CRVs) were delayed. As a result, we adapted our volunteer induction programme to an online version and were able to recruit 15 CRVs which led to 28 animals being rehomed in the Guildford community.

Whilst we had not been able to fully launch our programme of community events due to the pandemic, we were able to deliver online talks to local groups about Battersea Communities

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

and pet ownership and connect with additional organisations/businesses/groups in the local area. We hope to re-commence community events and face to face talks as soon as government restrictions are lifted.

In late September 2020, we launched our second community in Ashford and recruited 14 CRVs within the first few weeks of the launch. The launch of a new community was a smooth process due to prior development of robust processes and procedures. Seven animals were placed in our Ashford Community in 2020 and we hope to launch our programme of community events and talks in 2021.

Academy attendees

Due to the impact of the COVID-19 pandemic, our Academy work moved online with 27 programmes and webinars delivered to 467 delegates.

During 2020, we interviewed a sample of our Academy attendees to obtain feedback on potential and existing Academy courses, and what actions have been taken as a result of training. The results of these pieces of work will allow us to identify potential improvements to the programme and identify where we can deliver greater impact in this area going forward.

Grant recipients

Battersea’s grant giving programme works alongside the Battersea Academy, including to support smaller rescues develop their facilities and improve their ways of working. In 2020, we contacted a sample of our grant recipients and conducted online interviews and surveys. This allowed us to understand the outcomes of our grants programme so we can work on delivering greater impact in future.

Suppliers

We value all our suppliers and through building a robust procurement function, aim to develop strategic relationships with our key suppliers. In 2020, Battersea launched an electronic ‘Procure to Pay’ function. This will allow us to gain better insight into our expenditure across suppliers, enabling us to further develop our working relationships, securing more supplier contracts, and introducing an approved supplier list to the charity.

Environment

The Trustees recognise the importance of leading a charity that not only generates value for its beneficiaries, but also to the wider society. We recognise the environmental and climate risks, and we are committed to reducing the environmental impact of our operations and minimising our environmental footprint. To achieve this, Battersea ensures high standards of environmental management in place by contractors working on-site, that all waste is recycled where possible and supplies for electricity, paper and building materials are procured from green sources. In 2020, the Trustees approved the recruitment of an Environment and Sustainability Officer. The role will be responsible for developing an Environment and Sustainability policy, reducing Battersea’s environmental impact, and ensuring compliance with a number of mandatory energy assessment schemes.

Financial review

Income

Total income was £52.7m (2019: £44.0m) for the year – an increase of £8.7m from 2019. Despite the unpredictable economic climate, we received record legacy income of £22.6m (2019: £17.0m), and although Battersea had to cancel planned fundraising activity due to the pandemic, our Donations and Fundraising Events income increased to £26.6m (2019: £24.8m) in 2020, as regular donors continued to support, or increased their support, during

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

the year. Also included within income is Government grants of £1.4m (2019: nil) received this year in respect of the Government Retention Furlough Scheme.

	2020 £m	2019 £m	Change %	Ratio %
Legacies	22.6	17.0	33	43
Donations and FundraisingEvents	26.6	24.8	7	50
Governmentgrants	1.4	-	New	3
Gifts in kind	0.5	0.3	67	1
Tradingactivities and other income	0.5	0.6	(17)	1
Investment income	0.5	0.6	(17)	1
Charitable income	0.6	0.7	(14)	1
Total Income	52.7	44.0	20	100

Expenditure

Total expenditure remained fairly in line with prior year at £43.6m (2019: £43.8m). The amount we spent on caring for animals at Battersea increased to £18.1m (2019: £17.3m), reflecting inflationary increases in expenditure and headcount. Costs of raising funds decreased to £15.2m (2019: £16.4m) which was due to planned fundraising activity being cancelled to comply with government restrictions as a result of the COVID-19 pandemic. Education and awareness costs increased to £5.4m (2019: £5.3m) in 2020 as Battersea continues to raise awareness for Reframing Rescue. Support costs have decreased for the year to £4.4m (2019: £4.5m) due to savings generated through most of Battersea’s workforce working from home.

	2020 £m	2019 £m	Change %	Ratio %
Care of animals	18.1	17.3	5	42
Raisingfunds	15.2	16.4	(7)	35
Gifts in kind	0.5	0.3	67	1
Education and awareness	5.4	5.3	2	12
Support andgovernance	4.4	4.5	(2)	10
Total Expenditure	43.6	43.8	0	100

Net unrealised losses on investments in the year were £0.7m due to adverse movements in financial markets (2019: gain of £2.4m) as a result of the COVID-19 pandemic.

Total funds at year end were £98.5m (2019: £91.7m).

Pension

Battersea operates a defined contribution pension scheme for its employees. It also has a legacy defined benefit pension scheme which was closed to new members from September 2010. At the end of September 2013 this was also closed to future benefit accrual, to help mitigate any future liability.

Despite this, Battersea will continue to have ongoing liabilities, the funding of which is agreed between the trustees of the pension scheme and the charity’s Trustees. These liabilities are subject to fluctuation as assumptions change over time. As at 31 December 2020 the pension scheme was in a deficit position of £1.6m as a result of significant reduction in the yield of fixed income securities, which forms the basis of the discount rate applied to future liabilities

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

of the pension scheme. The deficit position has been recognised within the Statement of Financial Activities for the year ended 31 December 2020.

Since the balance sheet date, the performance of yields on fixed income securities have improved and assuming this higher yield is sustained and converts to a higher discount rate, the scheme would then return to a surplus. More information on this has been provided in note 23.

Full detailed information on Battersea’s pension schemes, including the defined contribution scheme, can be found in note 18.

Investment powers and policy

Under the Memorandum and Articles of Association, the charity has the power to make any investments which the Council of Trustees sees fit. The Trustees are aware of the need to maximise the investment return without jeopardising the Battersea’s reputation. They therefore require their investment advisers, Adam & Co, to refrain from investing in any company that is involved directly in the use of experimental animals for non-clinical research, or sub-contracts to companies that make use of such animals, unless there is a legal or regulatory requirement to do so. The mandate also prohibits Adam & Co from investing in tobacco companies. If in doubt they are asked to refer to the Chair of the Finance Audit and Risk Committee. Our investment advisers confirm adherence to this policy through a formal quarterly screening of our investment portfolio and the issuing of a compliance report to the Finance Audit & Risk Committee.

This gives Trustees assurance that there are no listed investments adverse to the purpose of the charity, thereby complying with the requirements of the Statement of Recommended Practice (SORP) and the Charity Commission’s revised guidance note CC14.

Council of Trustees, together with their advisers, set benchmark weightings for the portfolio and a benchmark for income yield.

The asset allocation of the portfolio as at 31 December 2020 was as follows:

	Benchmark	Actual Weighting
Equities	70%	71.7%
Bonds	25%	21.3%
Cash	5%	5.9%
Property	0%	1.1%
	100%	100%

Departure from benchmarks above, at year end, reflects the need to respond to the market situation thereby optimising investment returns.

The Council of Trustees place the emphasis on maximising long-term, maintainable investment growth and the actual performance is reviewed against the benchmark return with Adam & Co every quarter.

The result in the year to 31 December 2020 was as follows:

The result in the year to 31 December 2020 was as follows:	The result in the year to 31 December 2020 was as follows:	The result in the year to 31 December 2020 was as follows:	The result in the year to 31 December 2020 was as follows:
Benchmark Actual Performance Portfolio total return -2.5% -1.3%
		Benchmark	Actual Performance
	Portfolio total return	-2.5%	-1.3%

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Reserves

The aim of Battersea’s Reserves Policy is to ensure that the charity’s ongoing activities are protected from unexpected fluctuations in its income and expenditure. In setting the reserves Policy, the Council of Trustees is influenced by strategic risks facing the charity (which are kept under regular review) – not least the fact that the charity is heavily reliant on voluntary income (legacies and fundraising) to continue its charitable undertakings – which being uncertain sources of revenue may not always provide the necessary funds to cover essential costs. Trustees have affirmed the targeted range for free reserves to be maintained between £14.0m and £28.0m, which equates to between 6 to 12 months of 2021 budgeted charitable and support cost expenditure. This would allow for our activities to continue as normal during temporary falls in income or allow contingency plans to be implemented in the event of a more significant downturn in income or unanticipated increase in expenditure. This level is deemed appropriate when considered alongside the major strategic and operational risks currently faced by the Charity.

Free reserves (that is, those unrestricted funds not tied up in tangible fixed assets or other designated funds, excluding any pension assets) increased during 2020 to £25.3m (2019: £8.0m), representing approximately 11 months of charitable and support cost expenditure. Battersea experienced unprecedented levels of legacies income during the year reaching a record high of £22.6m, and planned investments in Individual Giving had to be placed on hold to comply with government restrictions. In addition, operational savings were achieved through minimised dog and cat numbers on site. In 2021, Battersea will be exploring strategic initiatives to utilise its general funds to help more dogs and cats.

Trustees balance the need to maintain an appropriate level of free reserves with funding key strategic initiatives such as investment in the charity’s infrastructure and facilities. In 2021, Trustees will be focussing on increasing Battersea’s charitable impact beyond our gates, supported by resuming investment in Individual Giving.

The balance on the freehold acquisition fund of £6.4m was set aside by Trustees to enable the Charity to increase its geographical reach by acquiring an additional site for Battersea. In 2020, the balance on this fund was transferred to general reserves. At time of signing, a suitable site had yet to be found and this strategic initiative will be reviewed in 2021.

The need for the development of existing facilities, particularly at the London and Windsor sites, has already been identified. Battersea committed to ensuring every dog and cat coming to our doors can stay in the safe and hygienic conditions they truly deserve during their time in our care. To achieve this vision the Site Development Fund, which at year end 2020 stands at £15.2m (2019: £20.8m), represents the Trustees’ short to medium term programme of improving the facilities needed to provide the highest standard of animal welfare for the cats and dogs in our care.

The Fixed Asset Fund of £57.2m (2019: £55.4m), represents the net book value of Battersea’s fixed assets – principally the value of the land and buildings on our three sites.

Trustees review and monitor this policy annually.

Plans for future periods The impact of COVID-19 on plans for 2021

With the COVID-19 pandemic and Government social distancing measures continuing into 2021, Battersea’s key priorities are ensuring we maintain a safe operational response to COVID-19; and planning and preparing strategic initiatives for post COVID. The latter may require a review of our operating model and a development of new strategic initiatives to help deliver increasing impact for dogs and cats in need.

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

In 2021, subject to Government restrictions, Battersea will also continue to implement the strategic initiatives prescribed by the Strategic Plan.

Theme 1: Directly helping more dogs and cats in need

Before COVID-19 restrictions, we expected to rehome nearly 6,000 animals in 2021 across our three sites and two communities. With Government social distancing guidelines and the closures of our three sites, we have introduced new measures to continue rehoming animals safely.

We will continue to establish our Battersea Communities Programme. Communities are expected to deliver the cost-effective expansion of rehoming and supporter engagement opportunities in new geographical areas. In 2021 we will be looking to grow the Guildford and Ashford Communities through a programme of events as well as agree the location for a third Battersea Community . The Strategic Plan provides for the establishment of ten Battersea Communities by 2023, although it is now likely that up to eight communities will be established.

Opened in 2020, we will be looking to fully operationalise our new hydrotherapy facilities , expected to benefit up to 100 dogs from across all three Battersea Centres per week. We will also be looking to complete the refurbishment of the Prince Michael of Kent building , the commencement of which had been postponed to September 2020 due to COVID-19.

Battersea will also continue to improve and innovate our digital rehoming and intake proposition and explore how digital technology can provide longer-term and even sector-wide solutions to rehoming.

Theme 2: Reframing rescue

Battersea will continue to ‘reframe rescue’ and seek to help more dogs and cats live where they are treated with compassion, care, and respect. We will do this by continuing to deliver the Reframing Rescue campaign , working at a national and local level, encompassing two campaigns for 2021 and the launch of Wear Blue for Rescue .

In addition to our Reframing Rescue campaign, we will be focussing on building Battersea’s brand visibility, awareness, reputation, and health with an emphasis on growing new audiences. To extend our reach we will be introducing a Battersea podcast , a strategically aligned YouTube series and delivering series 9 and 10 of ITV’s POGDOGs.

Theme 3: Our Voice

Battersea will continue to use our respected, authoritative, and influential position as a leader in the sector to tackle existing and emerging animal welfare issues and to remove barriers to greater pet ownership.

Key objectives of 2021 include:

• Support the Regulation of Rescues across the UK. England, Wales, and Scotland have all pledged to regulate the rescue sector , and we will be working to ensure that the ADCH Minimum Welfare and Operational Standards form the bedrock of the licensing standard.

• Pet Friendly Properties phase two : Our continued partnership with StreetVet will see us work with hostels and encourage them to accept more homeless people with dogs. Scheduled towards the end of 2021, we will undertake a research report which analyses the private rental market in key locations.

• During the COVID-19 pandemic, Battersea worked together with the rescue sector and DEFRA to produce new guidelines that will enable rescue organisations to responsibly rehome the animals in our care, whilst continuing to adhere to the latest Government

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

guidelines on social distancing. In 2021, we plan to publish a follow up COVID-19 report - focusing on the continuing financial health of the sector, the operational impact on service demand, and the effectiveness of welfare enforcement since the pandemic began.

Theme 4: Increasing Our Impact

Battersea will continue to extend our impact beyond the confines of our physical centres to help more animals by working in partnership with other dog and cat welfare organisations in the UK and around the world. Our international work will be targeted at partners in our focus countries of: Greece, Cyprus, Portugal, Romania, Bulgaria, South Africa, Sri Lanka, and India.

We will significantly grow the work of the Battersea Academy , continuing to develop our Academy e-learning capabilities by launching new content, training, and continuing the delivery of webinars alongside a return to delivery of our flagship intensive on-site programmes once Covid restrictions are lifted. We will continue to support ADCH members in the achievement of higher standards through promoting preferred access to our Academy programmes. We will work with partners in focus countries, developing and delivering bespoke training as required, in addition to developing strategic partnerships with identified organisations. We will enable the training of up to 1,000 dogs through our puppy, adolescent and skills online training aimed at members of the public.

In 2021, we will expand the Grants programme , including the launch of Battersea’s first Research programme, which will provide funding to pay for at least two academic research projects into selected and prioritised companion animal welfare topics, which will benefit Battersea and the wider animal welfare sector and the animals we serve. The Grants programme will also look to identify opportunities to build capacity in focus countries through developing targeted partnerships with animal welfare organisations. Grants awarded to strategic partners overseas will be focused on addressing key identified animal welfare issues, including dog and cat population management initiatives. We will expect to award our first multi-year grants in 2021. Battersea will seek to award grants totalling £800,000 across six funding streams, benefitting around 58 rescues from across the UK and overseas.

The work of our Academy and Grants programmes will be supported by an Advancement Board, that will connect Battersea to highly influential individuals and organisations, with the aim of advancing our external facing work, thereby enabling Battersea to increase our impact by reaching an increasing number of vulnerable dogs and cats. We will further our connections, influence, and impact through membership of the International Companion Animal Management coalition.

Theme 5: Our Enablers

Battersea will continue to invest in direct marketing fundraising campaigns and its regular giving lottery products to help generate financial returns over a longer-term period. We will look at driving value by doing fewer, bigger, and more profitable fundraising events, and assessing our Philanthropy and Corporate new prospect pipelines.

We will ensure Battersea remains innovative, agile, and committed to continuous improvement , building on our culture and values and using technology to improve efficiency and effectiveness across our teams, whilst not compromising on quality and service levels. In 2021 we have launched Battersea’s very first intranet and have plans to migrate our existing services to cloud based providers to leverage the benefits of Office 365.

We will begin the implementation of a comprehensive Data Strategy . This will transform Battersea’s management, use and storage of data across the charity.

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

We will continue to attract, develop, and retain talented people through the development and introduction of Battersea’s first People Strategy , which will be undertaken by the People Committee. Battersea will also be developing a Digital Learning Strategy to outline how staff will engage with digital learning, including the creation of high-quality digital learning resources to meet organisational needs. In addition to this, Battersea will be carrying out an organisational review of Equality, Diversity & Inclusion .

Key strategic outcomes over the life of the Strategic Plan are:

• 30,000+ animals rehomed from our existing three centres;

• 4,500 animals rehomed from a fourth centre;

• 2,000+ animals rehomed via Battersea Communities;

• 60,000 more animals rehomed annually by the UK rescue sector;

• 150,000 animals helped by the Battersea Academy; and

• 70,000 animals helped by Battersea Grants.

Equal Opportunities

Battersea is committed to providing equality of opportunity and valuing diversity. This is reinforced in our organisational values and is embedded in our day-to-day working practices. We demonstrate our commitment by:

• building a workforce whose diversity is valued;

• drawing on the skills and talents of this diverse workforce;

• enabling everyone at Battersea to achieve their full potential in an environment characterised by dignity and mutual respect; and,

• valuing equally the unique contribution that individual experience, knowledge and skills can make.

Fundraising standards

Open and accountable

All fundraising at Battersea is carried out with the full oversight of the Directors and the Council of Trustees. Battersea strives to provide an excellent service to all our supporters, and this is reflected in the low levels of complaints that we receive. Complaints are dealt with by our experienced Supporter Services team and are generally resolved without the need for escalation. Battersea takes any complaints very seriously and sees them as an opportunity to continue to improve our relationship with our supporters and the public.

Complaints

We record and monitor all complaints received and these are reported to our Trustees annually. We aim to acknowledge complaints within one working day with the vast majority being resolved within three working days.

• As a percentage against the volume of fundraising activity Battersea undertakes, we have received a very low number of complaints (a total of 390 complaints in 2020 – 0.00005% of our total volume of fundraising activity), and we strive to continue to improve how we measure, record, and resolve complaints across Battersea.

• In 2020, Battersea was asked to investigate one complaint that was made to the Fundraising Regulator that was satisfied with how Battersea resolved this complaint. No further complaints were investigated by the Fundraising Regulator.

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

• In 2020, Fundraising Compliance and the Supporter Services Team reviewed the current complaints system and as a result, a new and improved complaints tracking system has been developed. The system allows us to identify complaint themes and trends, ensuring we can better mitigate risks to Battersea in the future. The system is scheduled to go live in 2021.

Protecting the vulnerable

Battersea takes its responsibility towards supporters who may be considered vulnerable very seriously. We have a Vulnerable Persons Policy which is shared with staff and agencies working for us. Our Fundraising and Supporter Services teams have been trained to respond sensitively and appropriately to any individual whom they might consider to be in a vulnerable circumstance.

Contacting our supporters and supervising our fundraisers

Battersea prides itself on a high standard of ethical fundraising and we continually review how we contact the public to ask for support. This ensures that we follow regulations, meet our own high standards and exceed the public’s expectations. We are registered with the Fundraising Regulator and as such their logo appears on our fundraising collateral as a kitemark of approval. All contracts with our third-party agencies include clauses to be able to monitor, mystery shop and train their fundraisers. Each agency is required to provide proof of membership of one of the fundraising regulatory bodies, along with all copies of their compliance policies. Weekly status calls with our agencies allow us to monitor their operating procedures.

Battersea manages two society lottery products; the Paw Draw weekly lottery and the Superdraw quarterly raffle. We take steps to ensure the product design, marketing and fulfilment adheres to Licensing Code and Codes of Practice requirements of the Gambling Commission and best practice. Our marketing strategy is ethical and age-specific. Battersea follows the UN Rights of the Child and perceives a child to be anyone under the age of 18. As such, our gambling products are not open to over 16s (as permitted in legislation), and instead we require players to be over 18 years of age. This approach to age informs our marketing activity and we will not actively market to anyone we know is under 18 years of age.

We undertake extensive programmes of mystery shopping, fundraiser shadowing, call listening, training, and compliance support with our agencies. This facilitates the continued delivery of high quality and sustainable fundraising. We deliver a robust training programme to agencies working on our behalf, adhering to the Fundraising Code of Practice, and demonstrating best practice. Each training session has a section on compliance, consent for future contact preferences and dealing with vulnerable people. We actively engage with and encourage our agency fundraisers to be proud Battersea ambassadors.

In 2020, we concluded a Vulnerable Persons Policy and Training Audit of our third-party fundraising agencies (both face to face and telephone fundraising). As part of the recommended actions and in response to the impact of COVID-19, Fundraising Compliance now provides Battersea standard Vulnerable Persons training to all agencies. Battersea insists that all agencies provide Vulnerable Person training to their staff on a quarterly basis.

Our mystery shopping and call monitoring programme ensures that fundraisers are treating our potential donors fairly, respectfully, and appropriately. This is supported via the periodic shadowing of fundraisers by Trustees and members of the Executive Team. We also regularly attend the agency induction training sessions to observe and score the content and delivery of the fundraisers’ initial training using the Chartered Institute of Fundraising (CIOF)

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

/Fundraising Regulator checklist. Battersea is a member of the CIOF and the Fundraising Regulator and takes part in their compliance round table events.

Our trustees, directors, staff and senior management shadow our third-party fundraisers across all channels on a regular basis and provide feedback and/or recommendations for any improvement. These visits are recorded and form part of an annual report to our Council of Trustees.

In addition to the usual regulatory requirements, fundraising activity was responsive to the changing public health landscape caused by the global pandemic. Battersea created a set of internal standards that governed when face to face fundraising would and would not be permitted. Our standards exceeded the guidance provided by the CIOF and further demonstrated our commitment to the safety and well-being of our supporters. We enabled a fast time response mechanism, that allowed us and our agencies to respond swiftly to variations in lockdown status and risk tiering. Our efforts were effectively communicated via our website. We carefully monitored the feedback from the public through weekly meetings with our agencies and Battersea, to gauge public opinion towards face to face fundraising. Battersea was able to quickly respond to this information.

Streamlined Energy and Carbon Reporting (SECR)

Our SECR obligations

We recognise our obligation to manage the environmental impact of our operations and comply with all relevant environmental legislation, including the Streamlined Energy and Carbon Reporting (SECR) scheme.

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Our carbon impact

Element	Detail	Units	2020	Proportion %
Energy consumption used to calculate emissions	Electricity	kWh	1,668,046	43
	Gas	kWh	2,164,747	55
	LPG	kWh	-	-
	Transport Fuel	kWh	83,412	2
Total energy consumption	Total	kWh	3,916,205	100
Emissions from combustion of gas (Scope 1)	Gas	teCO2e	398	40
	LPG	teCO2e	-	-
Emissions from combustion of fuel for charity owned fleet (Scope 1)	Transport Fuel	teCO2e	20	2
Emissions from grey fleet business travel (Scope 3)	Transport Fuel	teCO2e	-	-
Emissions from purchased electricity (Scope 2–location based)	Grid Electricity	teCO2e	389	48
Total gross carbon emissions	Total Mandatory	teCO2e	807	100
Intensity ratio	Revenue	teCO2e / £100k	1.57	TBC
Emissions from grid electricity transmission and distribution losses (Scope 3–location based)	Electricity	teCO2e	33	-
Emissions from water supply and treatment (Scope 3)	Water	teCO2e	-	N/A
Total gross Scope 3 emissions	Total Optional	teCO2e	33	-
Renewable energy generated from own assets	Electricity	KWh	-	N/A
Emissions offsets resulting from renewable generation	Electricity	teCO2e	-	N/A
Total annual net emissions (Scope 1, 2 and 3)	Total Operational	teCO2e	840	-
Additional intensity ratios	Site Energy	KWh / m2	-	-
	Site Carbon	teCO2e / m2	-	-
	Employee Carbon	teCO2e / FTE	1.61	-

The table shows the Gross GHG emissions associated with our combined operations during 2020 were 807 tonnes of carbon dioxide equivalents (teCO2e). Our three sites account for 98% of our emissions and the remaining 2% is associated with transport. This ratio indicates that our future carbon reduction strategy should focus heavily on our buildings and their associated operations.

We have chosen to expand the scope of our reporting to exceed the mandatory requirement by including emissions associated with the transmission of electricity to site. Our Net annual emissions have been calculated by adding this figure to the gross emissions and in future years we will look to subtract any carbon offsetting or renewable energy generation that we can procure as part of our wider sustainability goals. Under this optional methodology our gross annual emissions are 840 teCO2e.

During the initial SECR period it is not a requirement to make a performance comparison against the previous year.

Emission Intensity Ratio

Current government environmental reporting guidance recommends the development of at least two Key Performance Indicators (KPIs) associated with key environmental impacts. We have identified two intensity ratios which divide our energy and carbon emissions by an appropriate normalisation factor to enable performance tracking over time and comparison

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

against organisations operating in equivalent sectors. We will use the employee-based indices to promote employee engagement with Battersea’s mission to minimise our impact on the environment.

• Average carbon emissions per £100k Turnover: 1.57 teCO2e / £100k

• Average carbon emissions per employee: 1.61 teCO2e/FTE

Calculation Methodology

The energy consumption of our core business operations has been calculated using proprietary software to process utility bills for our site and fleet data. Our carbon emissions have been calculated in accordance with guidance provided by the UK Government and the WRI GHG Reporting Protocol methodology.

Baseline Calculation Methodology

As our first SECR reporting year has occurred during COVID-19, it will not be a suitable year to assign as a baseline year against which future energy saving measures are evaluated. We will therefore continue to monitor the baseline in future years and will develop a suitable baseline calculation methodology to account for business as usual levels of productivity.

Energy Saving Measures

We have begun initial conversations with energy consultants sourced from Brightsourced Ltd to develop a road map to achieve net zero GHG emissions ahead of the government’s 2050 legally binding deadline for achieving net zero. The output of planned further workshops in this area will include development of a road map to achieving net zero emissions for our organisations through identification and evaluation of options to achieve carbon reduction pathways across all core areas of our business activities.

Energy Consumption Data (KWH) for 2020

Energy Consumption Data (KWH) for 2020	Energy Consumption Data (KWH) for 2020	Energy Consumption Data (KWH) for 2020	Energy Consumption Data (KWH) for 2020	Energy Consumption Data (KWH) for 2020	Energy Consumption Data (KWH) for 2020	Energy Consumption Data (KWH) for 2020	Energy Consumption Data (KWH) for 2020
Site	Fuel	Jan	Feb	Mar	Apr	May	Jun
Battersea	Diesel	4,984	4,984	4,984	4,984	4,984	4,984
	Unleaded	1,967	1,967	1,967	1,967	1,967	1,967
	Electricity	80,560	80,560	80,560	105,300	100,806	90,850
	Gas	98,268	108,160	92,006	72,371	72,371	72,371
Brands Hatch	Electricity	10,423	10,423	10,423	10,423	10,423	10,423
Old Windsor	Electricity	34,427	34,427	34,427	34,427	34,427	34,427
	Gas	203,045	182,906	150,200	100,567	78,640	67,368
Site	Fuel	Jul	Aug	Sep	Oct	Nov	Dec
Battersea	Diesel	4,984	4,984	4,984	4,984	4,984	4,984
	Unleaded	1,967	1,967	1,967	1,967	1,967	1,967
	Electricity	86,480	80,456	80,456	80,456	132,083	131,279
	Gas	72,371	72,371	83,657	83,657	90,890	90,890
Brands Hatch	Electricity	10,423	10,423	10,423	10,423	10,423	10,423
Old Windsor	Electricity	34,427	34,427	34,427	34,427	34,427	34,427
	Gas	58,908	58,908	58,908	58,908	58,908	78,098

24

BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Reference and administrative details

Charity number: 206394 Company number: 278802 Registered office: 4 Battersea Park Road, London SW8 4AA

Our advisers

Auditors Bankers Moore Kingston Smith LLP Barclays Bank Plc Devonshire House Clapham Junction Branch 60 Goswell Road 7-11 St John’s Hill London EC1M 7AD London SW11 1TR Solicitors Investment Advisers Bates Wells Adam & Co 10 Queen Street Place 22 King Street London EC4R 1BE London SW1Y 6QY

Council of Trustees

Chair (appointed 6 October 2020) Chair (resigned 6 October 2020) (resigned 29 July 2020) Honorary Treasurer (appointed 21 May 2021)

Paul Baldwin Chair (appointed 6 October 2020) Amanda Burton Chair (resigned 6 October 2020) Sophie Andrews (resigned 29 July 2020) Patrick Aylmer Honorary Treasurer Sir Alan Collins (appointed 21 May 2021) Brian Dunk Richard Hammond (appointed 6 December 2020) Alan Martin Anne Montgomery Vice Chair Cassie Newman Susan Paterson (appointed 6 December 2020) Matthew Pead (resigned 7 December 2020) Patricia Stafford David Turner Bradley Viner Deri Watkins David Watson (appointed 3 March 2020, resigned 21 May 2021) The Worshipful Mayor of Wandsworth (Ex Officio)

Senior Staff

Peter Laurie

Chief Executive (from April 2021) Interim Chief Executive (from January 2021) Director of Operations & Deputy Chief Executive (until January 2021)

25

BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Kelly Brown Director of Finance & Corporate Services (from October 2020) Bryony Glenn Director of Human Resources Julian Holmes-Taylor Interim Director of Fundraising (from March 2020) Claire Horton CBE Chief Executive (until January 2021) Paul Marvell Interim Director of Operations (from January 2021) Sarah Matthews Director of Marketing & Communications Catherine Miles Director of Fundraising (until March 2020) Shaun Opperman Director of Veterinary Services George Ruiz Director of Finance and Corporate Services (until October 2020)

26

BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Structure, Governance and Management

Trustee appointments

Battersea Dogs & Cats Home is governed by a Council of Trustees (who are also Directors of the charitable company for the purposes of company law). Trustees, who are volunteers with distinguished careers and experience in a wide variety of fields, are subject to fixed term appointments and election or re-election according to procedures set out in the Memorandum and Articles.

New Trustees are nominated via an external search led by the Chair of Trustees, interviewed by a panel of Trustees and the Chief Executive, and appointed where they have the necessary skills to contribute to the charity’s governance and strategic development.

An individual induction programme is agreed for each new Trustee to brief them on their legal obligations under charity and company law, and the Charity Commission guidance on public benefit, and inform them of the content of the Memorandum and Articles of Association, the committee structure and decision-making processes, the strategic plan and recent financial performance of the charity. As part of their induction, they meet key employees and other Trustees.

A skills audit is undertaken regularly to ensure appropriate expertise and diversity of experience is represented on Council to enable effective challenge, governance, and oversight of the charity to take place.

More information on Battersea’s Trustees and Executive Team can be found on Battersea’s website.

Trustee delegation

approving the delegation of financial authority through the Chief Executive, with specific limits imposed on delegation. The Council acts on advice and information from regular meetings with the Chief Executive. The Council met formally five times during 2020.

The Chief Executive is responsible for the day-to-day management of the Charity and for implementing policies agreed by the Council. The Chief Executive is assisted by a group of directors and senior managers.

charity. It takes delegated responsibility for ensuring there is a framework for accountability and for ensuring that the charity complies with all financial aspects of the law, relevant regulations, and good practice. The Committee also takes delegated responsibility for the performance of the charity’s investment portfolio. It met four times during 2020.

The Building Committee is established to oversee all capital projects carried out by the charity. It met five times during 2020.

A Governance and Nominations Committee was established to review compliance with appropriate legislation and codes issued by the Charity Commission and other regulatory bodies and to lead on any process for appointments to Council and committees. The Committee met twice in 2020.

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

The People Committee was formed in July 2020 to address key areas of focus for the Trustees including reviewing and approving Battersea’s remuneration policy, diversity, safeguarding, and learning and development. The Committee met three times in 2020.

During 2020 the following served as Trustees:

	Attendance at Council Meeting (max 5)	Attendance at Buildings Committee (max 5)	Attendance at Finance, Audit & Risk Committee (max 4)	Attendance at Governance & Nominations Committee (max 2)	Attendance at People Committee (max 3)
Paul Baldwin (Council Chair)	2/2	-	-	-	2/2
Amanda Burton (Council Chair and Chair of Governance & Nominations Committee)	4/4	-	1/3	2/2	0/1
Sophie Andrews	4/5	-	-	-	-
Patrick Aylmer (Chair of Finance, Audit & Risk Committee)	5/5	-	4/4	-	-
Brian Dunk	5/5	5/5	-	-	-
Alan Martin	5/5	5/5	4/4	2/2	-
Anne Montgomery	5/5	-	-	1/2	3/3
Cassie Newman	4/5	-	-	2/2	2/3
Matthew Pead	5/5	-	-	-	-
Patricia Stafford (Chair of People Committee)	5/5	-	-	-	3/3
David Turner	5/5	4/5	-	-	-
Bradley Viner (Chair of Buildings Committee)	5/5	5/5	-	-	-
Deri Watkins	4/5	-	-	-	-
David Watson	5/5	-	3/4	-	-

28

BAThERSEA DOGS, & CATS, HOME TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Battersea Governance and Management Structure STRATEGIC PLAN HERE FOR EVERY DOG AND CAT I. DIRECtLY HELPING MORE DOGS A14D CATS IN NEED 2. REFRAMING RESCUE 3. OUR VOICE 4 INCREASING OUR IK4PACT 5 OUR ENABLER5 SUPPORTED By Battersea in the CE)mmunily and Head(wrters SSS stafl momborn 947 re*t•wed volunteew• 3 LOCATIONS 7 OIRECTORATES CEO Office and External Affairs Operations Finance and CoTwxate Services Human Reswr¢8s and LearninE & Develowrent FundraisinÉ MarketirTr￿ & ComnidnicatioDs MANAQED BY Senior Manageiiient Group ENGAGING WITH Executive Team OVERSEEN BY Members Council of Tfustees Board SutrComniittee5 Building5 Committee Finan￿. Audit and Risk Committee - Governènce ar￿ Nominations Committee - People Committee 29

BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Related parties

None of our trustees receive remuneration or other benefit from their work with the Charity. Any connection between a trustee or senior executive with a related party or competitor of the charity must be disclosed to the Council of Trustees. In the current year, no such related party transactions were reported. Donations made by Trustees to Battersea totalled £1,040 (2019: £185) for the year.

The charity has two wholly owned subsidiaries: Battersea Dogs Home Limited (BDH), which operates the Battersea’s trading activities; and Bell Mead Kennels Limited, under which name the charity’s annex at Old Windsor operated. Bell Mead Kennels Limited is now dormant. The companies’ trading results and balance sheets are consolidated with those of the charity.

Pay policy for the Executive Team

Executive pay at Battersea reflects the market rate for comparable jobs in comparable organisations, the level of knowledge, skills and experience required, and the responsibilities and accountabilities associated with each role. Our pay policy aims to:

• recruit and retain talented individuals to lead and further develop our rapidly growing organisation;

• develop and sustain high performance, and;

• recognise individual performance in the preceding year.

The People Committee, formed in 2020, are responsible for overseeing the performance and remuneration of Battersea’s Executive Team, as well as approving recommendations from the Team with regard to the remuneration of other senior managers. Executive pay is reviewed by the Committee annually based on the performance of the relevant business area, contribution to the achievement of wider organisational goals and individual impact based on delivery against annual objectives in accordance with Battersea’s values.

Risk management

Effective risk management is key to successfully delivering our strategy. An organisation-wide risk management approach is in place which identifies our key strategic and operational risks and ensures that they are effectively managed through clear accountability and procedures for escalation as required.

The Battersea risk management strategy comprises:

• on-going review by the Executive team of strategic and operational risks (both existing and emerging risks) which have the potential to adversely affect the organisation;

• a quarterly review by the Finance Audit & Risk Committee and Council of the principal risks and uncertainties that the charity and its subsidiary BDH Ltd face;

• the establishment of policies, systems, and procedures to mitigate the risks identified in the quarterly review; and

• the implementation of procedures to minimise or manage any potential impact on the Charity should those risks materialise.

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

The Council of Trustees consider the specific major risks to the charity to be:

The Council of Trustees consider the specific major risks to the charity to be:	The Council of Trustees consider the specific major risks to the charity to be:
Risk	Mitigation
COVID-19 impact on income	The COVID19 pandemic and Government policy having an impact on Battersea’s ability to generate fundraising income, with face-to-face fundraising activities and fundraising events specifically impacted. There is also a risk of lower income generated through major donors, trusts, and corporate sponsors if funds are being diverted to organisations directly impacted by COVID-19. Mitigating these risks is an increase in digital, television, and online fundraising methods, deploying stewardship support across all supporter types, and hostingvirtual fundraisingevents.
Reputational impact due to COVID-19	Battersea considers the risk of being unable to demonstrate its charitable impact as a result of a reduced rehoming operation and low animal numbers due to the COVID-19 pandemic. Mitigating these risks, Battersea is focussing on developing strategies to continue to deliver charitable impact. This includes continuing to develop brand health, focussing communications on the Battersea Academy and grant giving, and through wider sector engagement work planned for 2021.
Financial	The most significant financial risk for Battersea is income uncertainty, specifically loss of fundraising income through changes in staff and/or fundraising environment, and through loss of legacy income through significant declines in property values because of political uncertainties, and more recently, COVID-19. We review our financial plans on a regular basis and manage any material risks via budgetary control, income pipeline reviews, investing in staff, carefully valuing properties, capital expenditure planning and cash flow forecasting. Also mitigating these risks is the level of free reserves which are set at a level sufficient to withstand anyshort-term financial risks.
Compliance	Non-compliance with GDPR, such as data breaches, data retention, training, and awareness, remains a key focus for Battersea. We recognise the importance of having a resilient approach to managing compliance and have set up a Compliance Steering Group and Compliance Forum to monitor regulatory requirements across Battersea. A full review of regulatory responsibilities, policies and pathways for reporting is planned for 2021. A Fundraising Compliance function is also in place to ensure compliance with relevant regulatory bodies. Reporting of Serous Incidents/Safeguarding issues to the Finance, Audit & Risk Committee, and People Committee.
Operational	Battersea recognises there is a risk that existing systems and processes are outdated and do not provide a cohesive, integrated supporter journey.

31

BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

	Risk	Mitigation
		As a result, we have developed a Data Strategy with a specific focus on reviewing our existing architecture and system, with implementation of Phase 1 of theplan expected in 2021.
	Cyber Security	We fully recognise the importance of defending our IT systems (including telephony) from malicious attacks and protecting the information we hold from unauthorised access and misuse. Risks around information security and data protection are reported to the Finance Audit and Risk Committee as part of their regular review of strategic risks. Our major systems are subject to regular penetration testing to ensure their defences are robust enough to withstand a sustained malicious attack.

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Statement of Responsibilities of the Council of Trustees

The Council of Trustees are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Council of 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 the group and of the incoming resources and application of resources of the group, including its income and expenditure, for that period. In preparing these financial statements the Council of Trustees is required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgments and estimates that are reasonable and prudent;

• state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

The Council of Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and the group and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Council of Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement as to disclosure to our auditors

In so far as the Council of Trustees are aware at the time of approving our trustees’ annual report:

• there is no relevant information, being information needed by the auditor in connection with preparing their report, of which the charity’s auditor is unaware, and

• the Council of Trustees, having made enquiries of fellow trustees and the group’s auditor that they ought to have individually taken, have each taken all steps that he/she is obliged to take as a trustee in order to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

By order of the Council of Trustees

Paul Baldwin (Chair) Approving Trustees and Strategic Report 14 June 2021

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Independent Auditor’s Report to the Members of Battersea Dogs’ and Cats’ Home

Opinion

We have audited the financial statements of Battersea Dogs and Cats Home Limited for the year ended 31 December 2020 which comprise the Group Statement of Financial Activities, the Group and Parent Charitable Company Balance Sheets, the Group Cash Flow Statement 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:

• give a true and fair view of the state of the group’s and the parent charitable company’s affairs as at 31 December 2020 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

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 charitable company 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.

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.

Other information

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

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

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.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the strategic report and the trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the trustees’ annual report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the trustees’ annual report.

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

• the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of trustees’ remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 32, 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 group and parent 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 group or parent charitable company or to cease operations, or have no realistic alternative but to do so.

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Auditor’s 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 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.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

• We obtained an understanding of the legal and regulatory requirements applicable to the charitable company and considered that the most significant are the Companies Act 2006, the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council

• We obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with governance.

• We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.

• We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.

• Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.

• In addressing the risk of fraud due to management override of internal controls we tested the appropriateness of journal entries and assessed whether the judgements made in making accounting estimates were indicative of a potential bias.

Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have

36

BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

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

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the group and parent charitable company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.

• Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group and parent charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or parent charitable company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit report.

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.

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters which 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 any party other than the charitable company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Date 22 June 2021

Luke Holt (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

Devonshire House 60 Goswell Road London EC1M 7AD

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Consolidated Statement of Financial Activities For the year ended 31 December 2020

		Unrestricted	Restricted	Total	Total
		2020	2020	2020	2019
	Notes	£000	£000	£000	£000
Income from:
Donations and legacies	2	49,551	932	50,483	40,411
Gifts in kind	3	497	-	497	325
Trading activities	4	686	-	686	1,930
Investment income	5	464	-	464	641
Charitable activities:
Animal sales and claim fees		584	-	584	727
Total income		51,782	932	52,714	44,034
Expenditure on:	6
Raising donations and legacies		13,406	56	13,462	14,254
Gifts in kind		497	-	497	325
Trading activities		2,543	47	2,590	3,036
Investment management fee		52	-	52	54
		16,498	103	16,601	17,669
Charitable activities:	6
Care of dogs and cats		19,864	1,152	21,016	20,258
Education and awareness		5,928	59	5,987	5,857
Total expenditure		42,290	1,314	43,604	43,784
Net (losses)/gains on investments	12	(723)	-	(723)	2,394
Net income/(expenditure)	7	8,769	(382)	8,387	2,644
Other recognised gains and (losses)
Actuarial losses on defined benefit pension
scheme	18	(1,638)	-	(1,638)	-
Net movement in funds		7,131	(382)	6,749	2,644
Reconciliation of funds:
Total funds at 1 January		90,596	1,147	91,743	89,099
Total funds at 31 December	16	97,727	765	98,492	91,743

All amounts are derived from continuing activities. All gains and losses recognised in the year are included above.

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Consolidated and Charity Balance Sheet As at 31 December 2020

		Group			Charity
		2020	2019		2020	2019
	Notes	£000	£000		£000	£000
Fixed assets
Intangible assets	9	904	663		904	663
Tangible assets	10	56,295	54,706		56,295	54,706
Investments:
Investment in subsidiary undertakings	11	-	-		5	5
Other fixed asset investments	12	18,582	19,304		18,582	19,304
		75,781	74,673		75,786	74,678
Current assets
Stock	13	80	87		-	-
Debtors	14	7,632	6,781		8,744	7,530
Cash at bank and in hand		20,879	14,728		19,830	14,051
		28,591	21,596		28,574	21,581
Liabilities
Creditors: amounts falling due within one
year	15	(4,242)	(4,526)		(4,230)	(4,516)
Net current assets		24,349	17,070		24,344	17,065
Total assets less current liabilities		100,130	91,743		100,130	91,743
Defined benefit pension scheme liability	18	(1,638)	-		(1,638)	-
Net assets		98,492	91,743		98,492	91,743
Funds
Unrestricted funds
- Designated	16	72,391	82,558		72,391	82,558
- General	16	25,336	8,038		25,336	8,038
		97,727	90,596		97,727	90,596
Restricted funds	16	765	1,147		765	1,147
Total funds		98,492	91,743		98,492	91,743

As permitted by s408 Companies Act 2006, the company has not presented its own income and expenditure statement and related notes. The company’s profit for the year was £6,300 (2019: profit of £2,000).

The financial statements were approved and authorised for issue by the Council of Trustees and were signed on its behalf on 14 June 2021.

P Baldwin, Chairman

P Aylmer, Honorary Treasurer

Company registration number 278802

40

BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Consolidated Statement of Cash Flows For the year ended 31 December 2020

For the year ended 31 December 2020
				Group
				2020	2019
		Notes		£000	£000
Cash inflow from operating activities		(a)		11,380	2,146
Returns on investments		(b)		464	641
Capital expenditure and financial investment		(c)		(5,693)	(6,605)
Cash outflow before use of liquid resources				6,151	(3,818)
Increase /(Decrease) in cash in the year		(d)		6,151	(3,818)
Notes to the cash flow statement
a) Net cash from operating activities
Net income				8,387	2,644
Losses/(gains) on investments				723	(2,394)
Depreciation				3,472	3,041
Amortisation				386	262
Decrease in stocks				7	63
Increase in debtors				(851)	(1,015)
Decrease in creditors				(284)	186
Bank interest receivable				(22)	(78)
Investment income receivable				(442)	(563)
Sale of fixed asset investments				4	-
Net cash inflow from operating activities				11,380	2,146
b) Returns on investments
Interest received				22	78
Returns on investments				442	563
				464	641
c) Capital expenditure and financial investment
Purchase of tangible fixed assets				(5,065)	(6,014)
Purchase of intangible fixed assets				(627)	(592)
Purchase of investments				(650)	(559)
Proceeds from sale of investments				509	868
Decrease/(increase) in portfolio cash				140	(308)
				(5,693)	(6,605)
d) Analysis of consolidated net cash resources
	At 1 January 2020	Cash flow		At 31 December 2020
	£000	£000			£000
Cash at bank and in hand	14,728	6,151			20,879

41

BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Notes and Accounting Policies

1. Accounting policies

(a) Basis of preparation

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The company is a public benefit entity for the purposes of FRS 102 and a registered charity established as a company limited by guarantee and therefore has also prepared its financial statements in accordance with the 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 (The FRS 102 Charities SORP including Update Bulletin 2), the Companies Act 2006 and Charities Act 2011. The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest whole £1,000 except where otherwise indicated.

(b) Basis of consolidation

The consolidated accounts include the accounts of the charitable company, Battersea Dogs & Cats Home, and its trading subsidiary Battersea Dogs’ Home Limited, which is consolidated on a line-by-line basis. No separate Statement of Financial Activities (“SOFA”) has been presented for the charity as permitted by Section 408 of the Companies Act 2006. Bell Mead Kennels remains dormant and therefore is not included in the consolidated accounts. For 2020 the Charity entity had income of £51.4m (2019: £42.8m) and incurred expenditure of £42.8m (2019: £43.2m).

(c) Incoming resources

Legacies are credited to incoming resources when the charity becomes entitled to the income, there is probability of receipt, and the amount is quantifiable. Legacies received in the form of investments are included at probate value. Legacies received following year end for which estate accounts have been received are included in the year being reported. Life interest and other residual legacies, where there is uncertainty of the amount to be received, are not accrued.

Donations and sponsorship income is recognised as income when the conditions for its receipt have been met.

Proceeds from lottery and raffle income are recorded gross of prize money and other expenditure. Income is recognised when the conditions for its receipt have been met.

Donated goods are recognised at their estimated value to the charity when received, and under the appropriate expenditure heading depending on the nature of the goods or service provided, at the same value and time.

Income from government grants relate solely to income received in respect of the Job Retention Scheme and is recognised in the period to which the underlying furloughed staff costs relate.

Income from trading activities predominately relates to income generated by Battersea Dogs Home Limited and paid to the charity annually. The accounts of the Company set out the income recognition policies applied.

Battersea recognises the income from a charitable fundraising event in the year in which the event takes place. Income received for an event taking place in a future period is treated as deferred income in the Balance Sheet.

Where income is received for a specific purpose, the income is included in restricted funds.

All other income is accounted for on a receivable basis.

(d) Expenditure

The costs of generating funds and charitable expenditure comprise staff and other costs directly attributable to an activity and an allocation of support costs. Where costs have been allocated, this has

42

BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

been done based on staff costs directly attributable to each of the charity’s activities. The costs of generating funds are those incurred in seeking voluntary contributions and do not include costs of disseminating information in support of the charitable objectives. Governance costs are those incurred in compliance with constitutional and statutory requirements.

(e)(i) Tangible fixed assets and depreciation

Tangible fixed assets costing more than £5,000 are capitalised and depreciated over their estimated useful lives as follows: -

Freehold land nil Freehold and long leasehold properties 25 years Short leasehold properties Over the shorter of the remaining period of the lease or 25 years Equipment, fittings, and vehicles 4 to 10 years

Where fixed assets are purchased with restricted funding, the purchase or building of the assets is the fulfilment of the restriction. The asset then becomes part of unrestricted funds.

Assets under construction consist of expenditure incurred in respect of tangible assets in the course of their construction and installation and that are directly attributable to bringing the asset into operation; these assets are not depreciated. Transfers are made to the relevant fixed assets category as and when the assets are available for use.

(e)(ii) Intangible fixed assets and amortisation

Intangible fixed assets comprise website, trademarks, and management system costs. Intangible fixed assets are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised to write off the cost or valuation of the assets less their residual values over their useful lives on the following bases:

Website development & management systems 4 years Trademarks 10 years

The capitalisation threshold for intangible fixed assets is £5,000.

Assets under construction consist of expenditure incurred in respect of intangible assets in the course of their construction and installation and that are directly attributable to bringing the asset into operation; these assets are not depreciated. Transfers are made to the relevant fixed assets category as and when the assets are available for use.

(e)(iii) Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the charity estimates the recoverable amount of the cash-generating unit to which the asset belongs. Intangibles with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.

(f) Going Concern

The trustees assess whether the use of going concern is appropriate i.e., whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees make this assessment in respect of a period of one year from the date of approval of the financial statements.

In making this assessment the trustees, have considered the charitable group’s revised forecasts and projections for income and expenditure, as well as long term cash flow. These continue to be regularly monitored by Directors and trustees. Despite government restrictions continuing to 2021, the Charity’s financial results have not been adversely affected. Battersea holds significant reserves and has liquid

43

BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

assets in the form of investments which are readily available to convert into cash.

After making enquiries, the trustees have concluded that there is a reasonable expectation that the charitable group has adequate resources to continue in operational existence for the foreseeable future. The charitable group therefore continues to adopt the going concern basis in preparing its financial statements.

(g) Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all its financial instruments. Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates, or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Basic financial liabilities

Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

(h) Investments

Fixed Asset Investments are stated at market value. It is Battersea’s policy to keep valuations up to date so that, when investments are sold, no gain or loss arises. As a result, the SOFA includes those unrealised gains and losses arising from the revaluation on the investment portfolio throughout the year. The SOFA does not distinguish between the valuation adjustments relating to sales and those relating to continued holdings as they are together treated as changes in the value of the investment portfolio.

(i) Stocks

Stocks are stated at the lower of cost and net realisable value.

(j) Pensions

In accordance with FRS 102 “Retirement Benefits”, the movement in the defined benefit pension scheme liability, as determined by the actuary, is charged to the SOFA each year. Current and past service costs and experience gains are allocated across the SOFA expense categories in proportion to total salary costs in each category. Where expected returns on assets and interest costs result in a net charge this is also allocated on the above basis. Where it results in a net income this is included within investment income. Actuarial gains or losses are shown separately on the face of the SOFA.

(k) Operating leases

Rentals payable under operating leases are charged to the Statement of Financial Activities as incurred over the term of the lease.

(l) Funds

Unrestricted funds, including designated funds, are expendable at the trustees’ discretion in furtherance of

44

BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

the charity’s objects. Restricted funds can be spent only in accordance with the donors’ specific requirements.

(m) Gifts in kind

Gifts in kind and donated services and facilities are recognised within incoming resources and expenditure at an estimate of the value to the charity of the donated services or goods.

(n) Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense unless those costs are required to be recognised as part of the cost of stock or fixed assets. The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

(o) Critical accounting estimates and areas of judgement

In view of the trustees applying the accounting policies adopted, the following estimates were required that have a significant effect on the amounts recognised in the financial statements:

The charity operated a defined benefit pension scheme, which closed to further accrual at the end of September 2013. An actuarial valuation of the scheme is undertaken to reflect the current position as at the year ended 31 December 2020. Assumptions used in this calculation, which include the level of future salary increases and the applicable discount rate, all require elements of estimation.

2. Voluntary income

		2020	2019
		£000	£000
Legacies		22,616	16,977
Donations		26,457	23,434
Government	Grants	1,410	-
		50,483	40,411

The estimated value of legacies notified but neither received nor accrued into income (as they do not meet the SORP recognition criteria) at 31 December 2020 is £12.9m (2019: £13.8m).

Included in the above figure is unrestricted income of £49.6m (2019: £39.0m) and restricted income of £0.9m (2019: £1.4m).

Grant income of £1.41m (2019: nil) relates wholly to income received from the Government under the Coronavirus Job Retention Scheme. There are no unfulfilled conditions or other contingencies relating to the grant income from the Coronavirus Job Retention Scheme.

45

BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

3. Gifts in kind

3.	Gifts in kind
		2020	2019
		£000	£000
	Pets at Home	19	15
	Cat and dog food	36	57
	Google advertising	349	243
	Dog miscellaneous	2	10
	Christmas Trees	3	-
	Facebook advertising	51	-
	Pets 4 Homes advertising	37	-
		497	325
4.	Trading activities
		2020	2019
		£000	£000
	Sale of shop goods	260	223
	Fundraising events	145	1,363
	Sundry activities	281	344
		686	1,930

Sundry activities include admissions and rental income. All amounts relate to unrestricted income in the current and prior year.

5. Investment income

nvestment income
	2020	2019
	£000	£000
Listed investment income	442	563
Deposit and bank interest	22	78
	464	641

All amounts relate to unrestricted income in the current and prior year.

46

BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

6. Group analysis of total expenditure

	Direct	Support		Direct	Support
	activities	costs	2020	activities	costs	2019
	£000	£000	£000	£000	£000	£000
Cost of raising funds
Donations and legacies	12,897	565	13,462	13,668	586	14,254
Gifts in kind	497	-	497	325	-	325
Trading activities	2,263	327	2,590	2,684	352	3,036
Investment management fee	52	-	52	54	-	54
Total cost of raising funds	15,709	892	16,601	16,731	938	17,669
Charitable activities
Care of dogs and cats	18,139	2,877	21,016	17,310	2,948	20,258
Education and awareness	5,390	597	5,987	5,251	606	5,857
Total Group expenditure	39,238	4,366	43,604	39,292	4,492	43,784

Analysis of support costs Support costs - 2020

		Activities	Care of
	Donations	for	cats	Education
	and	raising	and	and
	legacies	funds	dogs	awareness	2020
	£000	£000	£000	£000	£000
Support cost
Finance	110	64	561	116	851
Volunteer management	56	32	284	59	431
Facilities	15	9	77	16	117
IT	121	70	617	128	936
HR	144	84	735	153	1,116
Secretariat	104	60	529	110	803
Governance	15	8	74	15	112
	565	327	2,877	597	4,366

Governance costs consist of accountancy and audit fees, as well as other compliance costs.

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Support costs - 2019

		Activities	Care of
	Donations	for	cats	Education
	and	raising	and	and
	legacies	funds	dogs	awareness	2019
	£000	£000	£000	£000	£000
Support cost
Finance	111	67	559	115	852
Volunteer management	67	40	335	69	511
Facilities	16	9	79	16	120
IT	131	79	659	135	1,004
HR	130	78	656	135	999
Secretariat	100	60	502	103	765
Governance	31	19	158	33	241
	586	352	2,948	606	4,492

Support costs are apportioned to differing activities in proportion to salary costs.

7. Net income before transfers

Net income before other recognised gains/(losses) is stated after charging the following items:

	2020	2019
	£000	£000
Auditor’s remuneration:
- Charity	26	24
- Subsidiary	5	4
- Other	2	1
Accountancy, taxation, and other services	29	26
Depreciation	3,472	3,041
Amortisation	386	262
Operating lease rentals:
- Land	458	259
- Other	80	82
Cost of stock recognised as an expense	173	131
taff costs
	2020	2019
	£000	£000
Salaries and wages	15,726	14,989
Social security costs	1,414	1,315
Pension costs	949	822
Other employee benefits	214	195
	18,303	17,321

8. Staff costs

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

The actual average number of employees involved in the following activities during the year was as follows:

	2020	2019
	Number	Number
Donations and legacies	47	45
Trading activities	27	28
Care of dogs and cats	374	369
Education and awareness	48	49
Support staff	59	53
	555	544

The number of employees whose emoluments exceeded £60,000 for the year was:

	2020	2019
	Number	Number
£60,001 - £70,000	5	1
£70,001 - £80,000	2	2
£80,001 - £90,000	1	1
£90,001 - £100,000	2	2
£100,001 - £110,000	1	1
£130,001 - £140,000	-	1
£140,001 - £150,000	1	-

During the year, retirement pension benefits of £58,000 and other benefits of £11,000 were accrued to 7 higher paid employees (2019: 8).

No remuneration or reimbursed expenditure was paid to members of the Council of Trustees during the year (2019: Nil), nor were any emoluments waived in the year (2019: Nil). Indemnity insurance was provided in the year, covering trustees and staff, at a cost of £2,412 (2019: £2,021) to the charity.

Additional information:

The key management personnel of Battersea comprise the Trustees, the Chief Executive Officer and the Directors of Finance and Corporate Services, Operations, Veterinary, Fundraising, Marketing & Communications and Human Resources. The total employee benefits (including salaries, employer pension contributions and national insurance) of the key management personnel of the charity were £876,000 (2019: £863,000).

Battersea operates a defined contribution pension scheme for the benefit of the employees and directors. The assets of the scheme are administered by an independent pension provider. The amount for pension cost shown above includes Battersea’s contribution to this scheme during the year of £949,000 (2019: £822,000).

Pension costs also include the operating costs of Battersea’s defined benefit pension scheme of £79,000 (2019: £81,000).

Total redundancy and termination payments during the year of £56,000 (2019: £25,000) were recognised as an expense and did not give rise to a funding requirement.

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

9. Intangible fixed assets

	Intangible	Assets under
Charity and Group	assets	construction	Total
	£000	£000	£000
Cost
At 1 January 2020	1,733	111	1,844
Additions	542	85	627
Transfers	140	(140)	-
At 31 December 2020	2,415	56	2,471
Amortisation
At 1 January 2020	1,181	-	1,181
Charge for the year	386	-	386
At 31 December 2020	1,567	-	1,567
Net book value
At 31 December 2020	848	56	904
At 31 December 2019	552	111	663

10. Tangible assets

10. Tangible assets
	Land	and buildings
				Equipment,
	Freehold			fittings,
	land and	Long	Short	and	Assets under
Group and Charity	buildings	leasehold	leasehold	vehicles	construction	Total
	£000	£000	£000	£000	£000	£000
Cost:
At 1 January 2020	20,342	48,826	2,406	4,634	7,534	83,742
Additions	11	47	14	749	4,244	5,065
Transfers	85	10,362	21	108	(10,576)	-
Disposals	(4)	-	-	(17)	-	(21)
At 31 December 2020	20,434	59,235	2,441	5,474	1,202	88,786
Depreciation:
At 1 January 2020	10,288	13,102	1,947	3,699	-	29,036
Charge for the year	737	2,196	41	498	-	3,472
Disposals	-	-	-	(17)		(17)
At 31 December 2020	11,025	15,298	1,988	4,180	-	32,491
Net book value:
At 31 December 2020	9,409	43,937	453	1,294	1,202	56,295
At 31 December 2019	10,054	35,724	459	935	7,534	54,706

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

11. Investment in subsidiary undertakings

Battersea Dogs Home Limited (company number 3472633) and Bell Mead Kennels Limited (company number 247077) are both wholly owned subsidiaries, being companies incorporated in Great Britain. The principal activity of Battersea Dogs Home Limited is that of operating the shop of Battersea Dogs & Cats Home and developing commercial income streams. Bell Mead Kennels Limited is now a dormant company.

		2020	2019
		£	£
Shares at cost:
Bell Mead Kennels Limited		5,000	5,000
Battersea Dogs Home Limited		100	100
		5,100	5,100
summary of the trading results and balance sheet of Battersea Dogs Home Limited is shown below:
		2020	2019
		£000	£000
Profit and loss account
Turnover		828	876
Administrative expenses		(477)	(410)
Interest paid on intergroup balance		(2)	(1)
Net profit		349	465
Tax on ordinary activities		-	-
Profit on ordinary activities for the year before distribution		349	465
Amounts distributed to parent charity		349	465
Balance sheet
Current assets		1,375	1,072
Current liabilities		(1,375)	(1,072)
Net current assets and total assets		-	-
Capital and reserves
Called up share capital		-	-
Profit and loss account		-	-
Equity shareholders’ funds		-	-

A summary of the trading results and balance sheet of Battersea Dogs Home Limited is shown below:

Bell Mead Kennels Limited ceased trading on 31 December 1998 and has been dormant since that date. It has a current asset debtor of £5,000 and called up share capital of £5,000 at 31 December 2020 and 31 December 2019.

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

**12. **	Other fixed asset investments
			2020	2019
			£000	£000
	Shares at cost and market valuation
	Market value at 1 January		18,065	15,980
	Acquisitions at cost		650	559
	Disposal proceeds		(509)	(868)
	Realised (loss)/gain on disposal		(184)	26
	Gain/(loss) on revaluation during the year		(539)	2,368
	Market value at 31 December		17,483	18,065
	Cash held in portfolio at 31 December		1,099	1,239
			18,582	19,304
	Historical cost at 31 December		14,096	14,233
	Cash held in portfolio at 31 December		1,099	1,239
	Historical cost and cash held in portfolio at 31 December		15,195	15,472
	Listed investments at market value comprise:		2020	2019
			£000	£000
	UK government stock		1,350	1,357
	UK fixed interest securities		2,600	2,529
	Overseas fixed interest securities		-	120
	UK equity investments		8,652	9,517
	Overseas equity investments		2,440	2,365
	UK and European alternative investments		2,441	2,177
	Cash deposits held as part of portfolio		1,099	1,239
			18,582	19,304

At 31 December 2020, the following investments were considered material to the overall portfolio:

			2020	% of
			£000	portfolio
Impax Environmental Markets PLC			897	5.13%
TwentyFour Global Investment Funds PLC			888	5.08%
			1,785	10.21%
13. Stock
	Group		Charity
	2020	2019	2020	2019
	£000	£000	£000	£000
Goods for resale	80	87	-	-

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

14. Debtors

14. Debtors
			Group			Charity
			2020	2019		2020	2019
			£000	£000		£000	£000
Amounts due within one year:
Operating debtors			228	343		119	64
Due from subsidiary undertaking			-	-		1,357	1,058
Other debtors			1,375	1,394		1,375	1,394
Prepayments and accrued income			6,029	5,044		5,893	5,014
			7,632	6,781		8,744	7,530
15. Creditors
			Group			Charity
			2020	2019		2020	2019
			£000	£000		£000	£000
Amounts falling due within one
year:
Operating creditors			2,176	3,115		2,164	3,104
Amounts due to subsidiary undertaking			-	-		5	5
Taxation and social security			368	352		368	352
Other creditors			119	-		119	-
Accruals			1,579	1,059		1,574	1,055
			4,242	4,526		4,230	4,516
16. Group Funds
		At 1					At 31
	January				Gains/		December
		2020	Income	Expenditure	(losses)	Transfers	2020
		£000	£000	£000	£000	£000	£000
Unrestricted funds:
General fund	8,038		50,764	(37,760)	(539)	4,833	25,336
Battersea Dogs Home Limited		-	828	(479)	-	(349)	-
Designated funds
Fixed asset fund	55,369		-	(3,841)	-	5,671	57,199
Site development fund	20,772		-	-	(1,393)	(4,192)	15,187
Freehold acquisition fund	6,392		-	-	(429)	(5,963)	-
Welfare of dogs and cats		20	190	(210)	-	-	-
Capital fund
Bell Mead Kennels		5	-	-	-	-	5
	90,596		51,782	(42,290)	(2,361)	-	97,727
Other restricted funds
Welfare of dogs and cats		336	15	(317)	-	-	34
Kennel appeal		-	173	(173)	-	-	-
Volunteering, Fostering and
Communities		750	700	(750)	-	-	700
Other		61	44	(74)	-	-	31
	1,147		932	(1,314)	-	-	765
Total funds	91,743		52,714	(43,604)	(2,361)	-	98,492

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Group funds – prior year

	At 1					At 31
	January			Gains/		December
	2019	Income	Expenditure	(losses)	Transfers	2019
	£000	£000	£000	£000	£000	£000
Unrestricted funds:
General fund	11,181	41,641	(39,373)	730	(6,141)	8,038
Battersea Dogs Home Limited	-	876	(411)	-	(465)	-
Designated funds
Fixed asset fund	52,066	-	(3,303)	-	6,606	55,369
Site development fund	19,500	-	-	1,272	-	20,772
Freehold acquisition fund	6,000	-	-	392	-	6,392
Welfare of dogs and cats	-	80	(60)	-	-	20
Capital fund
Bell Mead Kennels	5	-	-	-	-	5
	88,752	42,597	(43,147)	2,394	-	90,596
Other restricted funds
Welfare of dogs and cats	7	409	(80)	-	-	336
Kennel appeal	214	209	(423)	-	-	-
Volunteering, Fostering and
Communities	100	750	(100)	-	-	750
Other	26	69	(34)	-	-	61
	347	1,437	(637)	-	-	1,147
Total funds	89,099	44,034	(43,784)	2,394	-	91,743

The fixed asset fund represents the net book value of Battersea's fixed tangible and intangible assets. These are all used for operational purposes in pursuance of Battersea's charitable activities.

The site development fund is an amount set aside to develop Battersea’s sites within its capital and maintenance programme. Major site development works across all centres will largely be complete by the end of 2021 in which event the balance on the fund will be reduced to nil.

The welfare of dogs and cats fund are monies where the donor has requested their use to the care and welfare of either dogs or cats across the charity as a whole, or specifically to clinic equipment at any of the three sites.

Transfers between funds reflect the year end status of these funds. The balance on the freehold acquisition fund was transferred to general reserves. The fund was set up to enable Battersea to increase its geographical reach by acquiring a new site. While Battersea remains committed to increasing its geographic reach, at time of signing, no such site for the acquisition has been identified.

The above funds are explained further in the reserves policy in the Trustees Report.

The capital fund represents shares in Bell Mead Kennels.

There were four restricted funds in the year: Welfare restricted are monies where the donor has restricted their use to the care and welfare of either dogs or cats across the charity as a whole or specifically to one of its three locations; Kennel appeal whose use is restricted to the building of kennels; Volunteering, Fostering and Communities is to cover Volunteer, Fostering and Communities costs; Other includes funds for capital projects (not including kennel construction), grant giving purposes, vehicle purchase and donations for clinic construction costs, clinic equipment purchases or clinic running costs.

Except for the fixed asset fund, these funds are substantially invested in Battersea's investment portfolio, which is used to generate an annual income to maintain the operational activities of the charity.

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

17. Analysis funds between net assets

	Fixed		Net current
2020	assets	Investments	assets	2020
	£000	£000	£000	£000
General funds	-	-	25,336	25,336
Fixed asset fund	57,199	-	-	57,199
Site development fund	-	18,582	(3,395)	15,187
Capital fund designated	-	-	5	5
Restricted fund	-	-	765	765
Total funds	57,199	18,582	22,711	98,492

	Fixed		Net current
2019	assets	Investments	assets	2019
	£000	£000	£000	£000
General funds	-	-	8,038	8,038
Fixed asset fund	55,369	-	-	55,369
Site development fund	-	19,304	1,468	20,772
Freehold acquisition fund	-	-	6,392	6,392
Welfare of dogs and cats	-	-	20	20
Capital fund designated	-	-	5	5
Restricted fund	-	-	1,147	1,147
Total funds	55,369	19,304	17,070	91,743

18. Pensions

Battersea operated a defined benefit pension scheme, the scheme closed to new members in September 2010 and closed to further accrual at the end September 2013. The assets of the scheme are held separately from those of the Home, being invested with an insurance company which generates the funds to pay pensions as they fall due.

The most recent full actuarial valuation was carried out as at 1 January 2018. Employer contributions ceased in April 2016 as the scheme was deemed no longer in deficit. Employees were transferred to a group personal pension scheme where employer contributions range from between 5.33% and 10.7% dependent on employee contributions.

The most recent FRS 102 valuation was based on the state of affairs as at 31 December 2020.

The principal financial assumptions are:

	2020	2019
Inflation	2.9%	2.9%
Rate of increase in salaries	0.0%	0.0%
Rate of increase for pensions in payment	2.1%	2.1%
Scheme liabilities discount rate	1.4%	2.1%

Pre and post retirement mortality tables used

S2NMA for Males and S2NFA for Females, improving in line with CMI_2019 projections with a 1.25% long term improvement rate.

Weighted average life expectancy for mortality tables used to determine benefit obligations

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Average expected future life at age 65 for:

Member aged	65	(current life expectancy) - male	22.4	years
Member aged	65	(current life expectancy) - female	24.4	years
Member aged	45	(current life expectancy) - male	23.7	years
Member aged	45	(current life expectancy) - female	25.9	years

The assets in the scheme and their expected rate of return are:

	2020			2019
		% of			% of
		fair	Expected		fair	Expected
		value	overall		value	overall
		of	return on		of	return on
		plan	plan assets		plan	plan assets
	£000	assets	%	£000	assets	%
Equities	11,153	41%		9,791	37%
Bonds	11,019	40%		8,535	33%
Alternatives	4,703	17%		7,305	28%
Cash	127	1%		86	1%
Annuity policies	154	1%		160	1%
Total value of assets	27,156		1.4	25,877		2.1
Present value of scheme liabilities	(28,794)			(23,779)
(Deficit)/Surplus	(1,638)			2,098
Surplus restriction per FRS 102	nil			(2,098)

Movements in fair value of plan assets:

ovements in fair value of plan assets:
	2020	2019
	£000	£000
Value of assets at 1 January	25,877	22,882
Expected return	541	646
Actuarial gains / (losses)	957	2,750
Benefits paid	(219)	(401)
Value of assets at 31 December	27,156	25,877

The actual return on plan assets was a gain of £1,498,000 (2019: £3,396,000).

The fair value of the plan assets at the reporting period end was £27,156,000 (2019: £25,877,000).

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Movements in the liability value over the year:

ovements in the liability value over the year:
	2020	2019
	£000	£000
Value of liabilities at 1 January	23,779	19,830
Past service cost	5	-
Interest on liabilities	497	558
Actuarial losses / (gains):
From change in financial assumptions	4,679	3,844
From change in demographic assumptions	128	(2)
From experience	(75)	-
Employer contributions (refunded)/to be refunded	-	(50)
Benefits paid	(219)	(401)
Value of liabilities at 31 December	28,794	23,779

Expected contributions for the year ended 31 December 2021

£000

Defined benefit pension plans

Employer Nil – as closed to accrual

All amounts charged to the Statement of Financial Activities relate to the current service cost.

Analysis of actuarial loss:

nalysis of actuarial loss:
	2020	2019
	£000	£000
Actuarial gains / (losses) from assets	957	2,750
Actuarial gains / (losses) from a change in financial assumptions	(4,679)	(3,844)
Actuarial gains / (losses) from a change in demographic assumptions	(128)	2
Actuarial gains / (losses) from experience	75	-
Actuarial loss	(3,775)	(1,092)

History of experience gains and losses

	2020	2019	2018	2017	2016
	£000	£000	£000	£000	£000
Difference between the expected and actual
return on assets	957	2,750	(1,380)	1,497	2,517
Percentage of scheme assets	3.5%	10.6%	-6.0%	5.9%	10.8%
Experience gains arising on scheme liabilities	75	-	1,184	-	155
Percentage of present value of scheme
liabilities	0.3%	0.0%	6.0%	0.0%	0.7%
Total actuarial (loss)/gain	(3,775)	(1,092)	1,471	(1,378)	3,013
Percentage of present value of scheme
liabilities	13.11%	4.59%	7.42%	5.83%	-13.04%

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BATTERSEA DOGS’ & CATS’ HOME TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

19. Financial commitments

The group’s total future minimum operating payments are as follows:

		Land and		Land and
		buildings	Other	buildings	Other
		2020	2020	2019	2019
		£000	£000	£000	£000
Operating lease commitments:
-	within 1 year	458	37	383	38
-	between 1- 5 years	1,833	9	1,533	46
-	more than 5 years	7,680	-	6,997	-
From	the balance sheet date

20. Capital commitments

There were capital commitments of £8.0m at 31 December 2020 (2019: £2.3m). These sums relate to the redevelopment of Pippin Kennels at Battersea Old Windsor and the refurbishment of the Kent building at Battersea.

21. Related party transactions

No disclosure has been made of transactions between the parent and subsidiary undertaking in accordance with the exemptions allowed by FRS 102.

Total donations received in the year from two Trustees amounted to £1,040 (2019: £185).

22. Company Limited by Guarantee

The guarantee given by the members of the charity is £1 per member in the event of there being a deficiency of assets should the charitable company be wound up. In 2020 there were 13 members (2019: 12 members).

23. Post balance sheet events

The value of Battersea’s defined benefit pension scheme as at 31 December 2020 stood at £1.6m deficit (2019: £2.1m surplus) and has been affected by the significant reduction in the yield of fixed income securities, which forms the basis of the discount rate used to calculate the Scheme’s liabilities from 2.1% to 1.4%. Since the balance sheet date, the performance of yields on fixed income securities have improved with the discount rate assumption at the end of April 2021 now standing at 2.15%. Assuming this higher yield is sustained and converts to a higher discount rate, the scheme would then return to a surplus.

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