## **ROYAL SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS**
**ASHFORD TENTERDEN AND DISTRICT BRANCH**
**REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
**Charity Registration No. 208111 (England and Wales)**
## **ROYAL SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS ASHFORD TENTERDEN AND DISTRICT BRANCH**
## **CONTENTS**
||**Page**||
|---|---|---|
|Reference and Administrative Details||1|
|Report of the Trustees|2|- 7|
|Independent Examiner's Report||8|
|Statement of Financial Activities||9|
|Balance Sheet||10|
|Notes to the Financial Statements|11 -|18|
## **ROYAL SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS ASHFORD TENTERDEN AND DISTRICT BRANCH**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**President**|Mr P O'Grady||
|---|---|---|
|**Patrons**|Mr B Mills||
||Mr L Camier||
|**Trustees**|Ms S Stoker|(Chairman)|
||Miss S Moir|(Secretary)|
||Ms L Kendall|(Treasurer)|
||Mrs I Brant||
||Mr G Hoad||
||Mr M Norman||
||Ms J Poplett||
||Mr I Smith||
|**Key Management Personnel**|Trustees (as detailed|above)|
||Mr I Jubb (cattery manager)||
|**Principal Address**|34 Station Road||
||Ashford||
||Kent. TN23 1PH||
|**Independent Examiner**|M A Wilkes FCA||
||Azets Audit Services||
||5th Floor||
||Ashford Commercial Quarter||
||1 Dover Place||
||Ashford||
||Kent. TN23 1FB||
|**Banker**|National Westminster Plc||
||20 High Street||
||Ashford||
||Kent. TN24 8SH||
|**Investment Managers**|Investec Wealth and|Management Ltd|
||5 George Square||
||Glasgow||
||G2 1DY||
- 1 -
## **ROYAL SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS ASHFORD TENTERDEN AND DISTRICT BRANCH**
## **REPORT OF THE TRUSTEES**
The Trustees present their report and financial statements of the charity for the year ended 31 December 2020. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the charity.
The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 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 published on 16 July 2014 as amended by Bulletin 1.
Consideration has also been given to the additional guidance issued by the Charities SORP Committee in March 2020, entitled ‘Implications of COVID-19 control measures and charity financial reporting’.
## **Purpose**
The RSPCA Ashford Tenterden & District Branch is a registered charity. The object of the charity is to "promote kindness and to prevent and suppress cruelty to animals, and do all such lawful acts as the branch may consider to be conducive or incidental to the attainment of these objects".
## **Main activities**
The main activities of the charity during 2020 were:
- Running the Ashford Cattery with the associated income including from the Safe Haven scheme
- Running the charity shop in Ashford
- Fundraising, donations and membership
- Managing our investments
- Supporting the local RSPCA Inspectors, Animal Welfare Officers and Animal Collection Officers
## **Public Benefit Statement**
The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Trust’s aims and objectives and in planning future activities.
## **Achievements and Performance in the year**
## _Significant activities_
Once again as we entered a new year, 2020, we were full of optimism on the back of excellent results from the previous year, all of which were down to the hard work and dedication of our staff and volunteers. Our hope was that 2020 could be even better. Less than three months into the year everything changed as the country entered lockdown and we closed our doors both to the cattery and the shop. Despite this our achievements are something to be extremely proud of and are as follows (2019 figures are given in brackets):
- We took in 246 cats (413) and rehomed 225 (361);
- We neutered 180 animals (389) including 30 (145) owned by members of the public;
- We microchipped 179 animals (408) including 14 (158) owned by members of the public; and
- We provided help with veterinary care through our Welfare Assistance Scheme for 30 animals (245).
We would like to thank all those people who contribute to the success of the charity and support us with volunteer time, fundraising activities, financial discounts or advertising. They include local businesses, veterinary surgeries, vets, branch members, staff and volunteers and local press. Lastly we would like to thank the public for their ongoing support of the charity. Our success would not be possible without them. This was especially important during such a different and often difficult year. We were truly humbled by the contributions made, whether financial or in terms of t th h i l di
As the figures given show the changes we needed to make as a result of COVID-19 had an impact on the charity. As the government talked about the need for a national lockdown and isolation for certain groups of the population we, as a Board of Trustees, took the decision in mid-March 2020 to implement a number of control measures, which included closing both the cattery and the shop, cancelling all planned fundraising events and standing down our volunteers.
- 2 -
## **ROYAL SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS ASHFORD TENTERDEN AND DISTRICT BRANCH**
## **REPORT OF THE TRUSTEES**
## **Achievements and Performance in the year**
## _Significant activities_
For the first two months of the lockdown period we were unable to rehome cats and therefore no income was generated in this manner. At this time however we had a number of case cats resident and the income continued to be received for this area. The change in restrictions in May 2020 meant that by introducing new processes we were able to start rehoming again, albeit at a lower level than usual.
We maximised the application of government support available during the year, which reduced the negative impact on our significant activities.
## **The Branch Charity Shop (est.2003)**
The Branch shop again started on a successful footing raising £8,231 for the Branch up until the time it was forced to close at the start of the first National Lockdown. This is clearly a large reduction from the previous year where shop takings were £40,101. This was even more disappointing as the Trustees had plans to invest in the shop this year. We had hoped to make some improvements to benefit both volunteers and customers. This has obviously all had to be put on hold until such time as we can safely re-open. The shop premises qualified for the small business rate relief and as such attracted the government grant of £10,000, which was received in April 2020. In addition we took advantage of additional measures open to us such as reduced rates for the shop.
Once again our thanks go to the senior volunteers for keeping the shop running smoothly during the time it was open and to all the volunteers who cheerfully give up their time. We know they are all eager to get back into the shop to start raising money for the Branch and look forward to welcoming them back as soon as circumstances allow us to do so. We are confident that we can take the shop forward to even greater success once we get back to “business as usual”.
## **Fundraising, Donations and Membership**
As planned fundraising events were cancelled in March 2020 the Cattery Manager and staff utilised social media to make a number of appeals for donations including food. These were very successful and were utilised throughout the year. We would like to thank everyone who has responded so generously to our appeals.
In addition we have been grateful to be awarded a grant during the COVID-19 lock-down, in the amount of £750, from Ashford Borough Council, received in June 2020. We would like to once again thank Ashford Borough Council for their support.
Income raised from fundraising events of £1,813 was a reduction from the previous year, which had been £4,961. This is mainly due to the lack of events during 2020 as a result of lockdown and restrictions. The total income from fundraising in general did increase as a result of donations made in response to social media campaigns. Total donations for 2020 were £12,014 compared to £4,566 in 2019. We would like to thank the members of the Fundraising Committee for the time they give up and enthusiasm they have for raising money for the Branch. We would also like to thank our staff for their extremely hard work in relation to utilising social media during this difficult period. As always it is much appreciated.
We also continue to receive the RSPCA Door to Door income, which during 2019 amounted to £25,173 (£26,739 in 2019).
- 3 -
## **ROYAL SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS ASHFORD TENTERDEN AND DISTRICT BRANCH**
## **REPORT OF THE TRUSTEES**
## **Managing our investments**
During 2020 we continued to use an investment manager to oversee our investment portfolio and provide professional advice as and when required. The value of our investment portfolio decreased in 2020 by £29,501 to £174,409 (£203,910 in 2019). This decrease in value was unfortunately due to the impact of COVID-19 and the associated economic downturn. This had a further negative impact on the investment income during 2020, which amounted to £8,600 in 2020 (£11,594 in 2019).
## **Supporting the local RSPCA Inspectors, Animal Welfare Officers and Animal Collection Officers**
As with previous years we continued to support the work of the local RSPCA Inspectors, Animal Welfare Officers and Animal Collection Officers, working on complaints of cruelty to animals and helping with the collections and rescues of animals in distress. During 2020 we supported the collection of injured and stray cats and provided financial aid to a number of domestic animals that needed veterinary treatment.
## **Impact of COVID-19**
We have explained the impact of COVID-19 on the main activities of the charity above however the impact has been wider than that. Our volunteers, who give so much time and effort to support the charity, have been unable to continue during this period. In addition in March 2020, as a further control measure, working patterns for our staff were changed and advantage was taken of the furlough scheme. Finally everyone who may have wished to visit our cattery and shop, attend our fund raising events and adopt one of our cats were unable to do so. Rehoming was later restarted however in a very different way.
## **Financial Review**
Income for the year amounted to £170,836 (£170,652 in 2019), an increase of £184 on the previous year. The main sources of income for 2020 changed to be the cattery income of £73,564 (2019: £73,608) and fundraising of £26,886 (£31,700). Previously this would have included the shop takings, which were £8,231 (2019: £40,101) and whilst this is still a good contribution to the income of the branch, as a result of the changes made because of COVID-19 is obviously a substantial decrease. Expenditure for the year amounted to £181,878 (2019: £209,571).
This resulted in a deficit for the year of £11,042 (2019: deficit £38,919). After taking account of movements on the charity’s investments this resulted in an overall decrease in funds of £40,543 (2019: decrease £23,235).
## **Reserves Policy**
The Trustees review the reserve levels of the charity annually. This review encompasses the nature of income and expenditure streams, the need to match income with commitments and the nature of reserves. The Trustees take into consideration the future plans of the charity, the uncertainty over future income streams and other key risks identified during the risk review.
The Trustees would ideally like to keep between 6 and 9 months average general expenditure equivalent to between £99,000 and £150,000 (2019: £99,000 and £150,000), as unrestricted reserves. The unrestricted reserves of the charity at 31 December 2020 amount £85,760 (2019: £40,893).
It is believed that should operations drastically reduce at the cattery, that this level of reserves would allow sufficient time to wind up the operation in a professional and reasonable manner, enabling the meeting of its legal and moral obligations to its suppliers and staff. The policy is reviewed and updated on an annual basis and has been reviewed in light of COVID-19.
Designated funds at 31 December 2020 amounted to £514,764 (2019: £600,174) relating to the charity’s fixed assets and investments.
- 4 -
## **ROYAL SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS ASHFORD TENTERDEN AND DISTRICT BRANCH**
## **REPORT OF THE TRUSTEES**
## **Investment policy**
The investments held by the charity were inherited from previous Trustees and committees. No change is foreseen by the current Board of Trustees in terms of the investments held, however the Investment Policy is currently under review. In accordance with Charity Commission guidance the Trustees continue to use an Investment Manager and accordingly rely on the advice provided. The Trustees will also review the Investment Policy in light of the impact of COVID-19.
## **Risk policy**
The Trustees understand and accept that the management and control of risk rests with us. As such we work on a dayto-day basis with both the staff and volunteers of the charity, together with professional advisers where necessary, to ensure risks are managed to within an acceptable level. We are also supported by the National Society and our Branch Support Specialist in this vital area.
During 2020 the Board of Trustees continued to go through a period of change, with a new trustee being co-opted in January 2020. The review of organisational governance, which started towards the end of 2018, continued although it was slowed slighted by the impact of COVID-19. Towards the end of the year however a review of staffing was undertaken as the trustees believed that there was a need for an additional role to cover areas of governance, including around the shop. Following a very successful recruitment campaign both a Branch Manager and a Deputy Branch Manager were successfully recruited on a part-time basis.
Risk assessments were undertaken throughout 2020 and continue covering the period up to the date of this report. As a result of this a number key risks facing the charity have been identified, which we believe are common to most charities of our size. These are consistent with 2019, subject to the addition of a COVID-19 related risk. These are:
- Skills and experience of Trustees and the lack of a strategic approach
- Information quality and availability
- Contingency and disaster recovery
- Financial and budgetary control
- Loss of income through fraud or error
- Compliance with legislation and regulations
- Failure to recover from the impact of COVID-19, including the loss of support, financial and otherwise, from the
## **Pay policy for key management personnel**
The Trustees consider that it is the Trustees that make-up the key management personnel of the charity. The Trustees are in charge of directing and controlling, running and operating the charity on a day to day basis and all executive functions sit with us. All Trustees give of their time freely and no trustee received remuneration in the year.
There is a Remuneration Policy in place for the charity, which covers all members of staff.
## **Pension liability**
The pension contributions made are for an auto enrolment scheme and are therefore defined contribution and not a defined benefit scheme. As such these are all individual employee pots rather than an entity pension scheme and therefore there is no impact on the charity in this respect.
- 5 -
## **ROYAL SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS ASHFORD TENTERDEN AND DISTRICT BRANCH**
## **REPORT OF THE TRUSTEES**
## **Plans for the future**
The Trustees plans for the next 12 months are:
- Recovery from the COVID-19 lock-down
- Develop the in-house neutering provision
- Continue with the provision of the walk-in vaccination clinic, which has been hugely beneficial to both animals and their owners
- Recruit more trustees and volunteers to support the charity
- Continue to develop strategies to increase legacies
- Develop strategies to increase the number of Safe Haven sponsorships
- Set a strategy in relation to the charity shop, including exploring options for online sales
- Review fundraising options, including Increasing the use pf social media
- Continueincreasing use of social media for fundraisingto work on the governance and administration structures, including improving information systems and
## **COVID-19 and going concern**
As already noted in the Trustees’ Report there has been an impact on income as a result of the COVID-19 lockdown, with the shop closed and rehoming fees reduced. A large amount of work has been untaken by members of staff to increase donations through social media campaigns, which continue to be well supported. All government support offered has been taken up where relevant and applications for grants have been made to other bodies where appropriate. All measures have been taken to reduce costs during this period. The investments we hold are for the medium to long-term and therefore expect to see a recovery from the current impact on value and income.
The charity, as a branch of the RSPCA, does receive support, financial and otherwise, from other branches, the Regional Board and the National Society. All of these have been subject to the impact of COVID-19 and as such we do not believe that we should rely to the same level of input going forward although of course we hope that it does. For example we expect door-to-door grant to remain similar for the coming year, as this is retrospective, however are planning for a significant drop the following year.
We are however satisfied, based on past results, that we are robust as a stand-alone organisation and will continue to work during 2021 to mitigate any such impacts. As a result, as at the date of this report, the Board of Trustees are confident that the charity will continue to be able to operate during the next 12 months and is therefore currently a going concern. As such we believe that the accounts give a true and fair view and that there are no changes required for post balance sheet events.
## **Structure**
The charity, which is registered with the Charity Commission under number 208111, is established under the RSPCA Branch Rules effective 18 February 2009.
## **Governance and Management**
The Trustees of The Royal Society for the Prevention of Cruelty to Animals (Ashford, Tenterden & District Branch) are responsible for the general control and management of the administration of the charity
During the year the following were Trustees of the charity: Ms S Stoker (Chairman) Mr G Hoad (appointed 29 January 2020) Mrs S Moir (Secretary) Mr M Norman Ms L Kendall (Treasurer) Ms J Poplett (appointed 27 January 2021) Mr A Brant (deceased 8 July 2021) Mr I Smith Mrs I Brant
- 6 -
## **ROYAL SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS ASHFORD TENTERDEN AND DISTRICT BRANCH**
## **REPORT OF THE TRUSTEES**
## **Governance and Management**
The Board of Trustees must consist of between seven and fourteen members, which was the case during 2020. It was acknowledged that a wider range of experience would be an advantage in light of the plans for the charity, especially around fundraising and information technology. We therefore undertook a trustee skills audit and as a result ran a recruitment campaign, which was subject to a positive response. Recruitment of new trustees is in line with the Trustee Recruitment Policy. All Trustees are subject to election at the Annual General Meeting.
## **Trustees' Responsibilities**
The Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance
pp g q p p financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- - observe the methods and principles in the Charities SORP 2015 (RFS 102);
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed
- - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the chairty
The Trustees are responsible for keeping proper accounting records which 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
## **Independent examiner**
On 7 September 2020 Group Audit Services Limited trading as Wilkins Kennedy Audit Services changed its name to Azets Audit Services Limited. The name they practice under is Azets Audit Services and accordingly they have signed their report in their new name.
Approved by the Trustees and signed on their behalf by:
……………………………………
## **Ms S Stoker**
Date: 3 September 2021
- 7 -
## **ROYAL SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS ASHFORD TENTERDEN AND DISTRICT BRANCH**
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES**
I report on the accounts of the charity for the year ended 31 December 2020 which are set out on pages 9 to 18.
## **Responsibilities and basis of report**
As the charity Trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act')
I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
I have completed my examination. I confirm that no material matters except that referred to in the previous paragraph have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1. accounts records were not kept in respect of the Trust as required by section 130 of the ACT; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fair view' which is not a matter considered as part of an independent examination.
We draw attention to the disclosures relating to the impact of Covid-19 since the year end set out in notes 1.10 and 17. Our opinion is not modified in respect of this matter.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be researched.
## **M A Wilkes FCA**
9 September 2021
Azets Audit Services
5th Floor Ashford Commercial Quarter 1 Dover Place Ashford Kent. TN23 1FB
- 8 -
## **ROYAL SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS ASHFORD TENTERDEN AND DISTRICT BRANCH**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020**
|**Notes**
**Income from:**
Donations and legacies
**2**
Charitable activities
**3**
Other trading activities
**4**
Job Retention Scheme grant
Retail rates grant
Investment income
**Total income**
**Expenditure on:**
**Raising funds**
Shop
Other
Investment manager's costs
**Charitable activities**
**Total resources expended**
**5**
**(Loss) / Gain on investment assets**
**11**
**Net movement in funds**
**Funds brought forward 1 January 2020**
**Funds carried forward 31 December 2020**
**Net expenditure before gains/(losses)**
**on investments**|**2020**
**Total**
**2019**
**Total**
**£**
**£**
12,405
4,602
78,310
78,064
38,631
76,392
22,140
-
10,750
-
8,600
11,594
170,836
170,652
6,005
11,609
6,867
19,765
2,000
2,000
167,006
176,197
181,878
209,571
(11,042)
(38,919)
(29,501)
15,684
(40,543)
(23,235)
641,067
664,302
600,524
641,067
**Unrestricted**|
|---|---|
All income and expenditure derive from continuing activities. All transactions in 2019 related to unrestricted activity.
- 9 -
## **ROYAL SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS ASHFORD TENTERDEN AND DISTRICT BRANCH**
## **BALANCE SHEET AS AT 31 DECEMBER 2020**
|**Notes**
**Fixed Assets**
Tangible assets
**10**
Investments
**11**
**Current Assets**
Debtors
**12**
Cash at bank and in hand
**Creditors:**amounts falling due within one year
**13**
**Net current assets**
**Net assets**
**Funds**
Unrestricted funds
Designated funds
**14**
**15**|**£**
**£**
**£**
**£**
340,355
351,264
174,409
203,910
514,764
555,174
13,997
13,645
90,631
83,600
104,628
97,245
(18,868)
(11,352)
85,760
85,893
600,524
641,067
85,760
40,893
514,764
600,174
600,524
641,067
**2019**
**2020**|**£**
**£**
**£**
**£**
340,355
351,264
174,409
203,910
514,764
555,174
13,997
13,645
90,631
83,600
104,628
97,245
(18,868)
(11,352)
85,760
85,893
600,524
641,067
85,760
40,893
514,764
600,174
600,524
641,067
**2019**
**2020**|
|---|---|---|
||||
|||641,067|
|||40,893
600,174|
|||641,067|
The financial statements were approved and authorised for issue by the Board on 25 August 2021.
Signed on behalf of the Board of Trustees
**Ms S Stoker Trustee**
**Ms L Kendall Trustee**
The notes on pages 11 to 18 form part of these financial statements
- 10 -
## **ROYAL SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS ASHFORD TENTERDEN AND DISTRICT BRANCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **1 ACCOUNTING POLICIES**
## **1.1 General information and basis of preparation**
The Royal Society for the Prevention of Cruelty to Animals, Ashford Tenterden and District Branch is a registered charity with the Charity Commission in the United Kingdom. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity’s operations and principal activities "promote kindness and to prevent and suppress cruelty to animals, and do all such lawful acts as the branch may consider to be conducive or incidental to the attainment of these objects".
The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK (FRS 102) issued on 16 July 2014, the Financial Reporting Standard applicable in the United Kingdom (FRS 102) as amended by Bulletin 1, the Charities Act 2011, and UK Generally Accepted Practice as it applies from 1 January 2015.
The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity and rounded to the nearest £.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
## **1.2 Funds**
Unrestricted general funds are funds which can be used in accordance with the charitable objects at the discretion of the Trustees.
Restricted funds are funds that can only be used for particular restricted purposes within the objects of the charity. Restriction arises when specified by the donor or when funds are raised for particular restricted purposes.
Designated funds represent funds invested in specific projects. The designated fund balance has been represented to ensure that fund balance stated accurately reflects the designation policy adopted by the Trustees.
## **1.3 Income recognition**
All income is included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.
For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.
For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. At this point income is recognised. On occasion legacies will be notified to the charity however it is not possible to measure the amount expected to be distributed. On these occasions, the legacy is treated as a contingent asset and disclosed.
Income from trading activities includes income earned from fundraising events to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.
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**ROYAL SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS ASHFORD TENTERDEN AND DISTRICT BRANCH REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **1.3 Income recognition (continued)**
Investment income is earned through holding assets for investment purposes such as shares and property. It includes dividends, interest and rent. Interest income is recognised using the effective interest method and dividend income is recognised as the charity’s right to receive payment is established.
Income from cinic charges, collections and other fundraising is recognised on an accruals basis.
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
## **1.4 Expenditure recognition**
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:
- Costs of raising funds includes the costs involved in putting on fundraising events and costs involved in running the charity shop;
- Expenditure on charitable activities includes comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs allocated directly to such activities and those costs of an indirect nature necessary to support them. The purchase of cards and brochures is included in the Statement of Financial Activities in the year of purchase. Costs of printing publications and cards are expensed in the year they are incurred;
- Other expenditure represents those items not falling into the categories above.
Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.
## **1.5 Tangible fixed assets**
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives as follows:
Fixtures and fittings 3 years straight line Cattery set up costs 20 years straight line Motor Vehicles 4 years straight line Buildings 50 years straight line
All assets costing more than £200 are capitalised and a full year’s depreciation is charged in the year of acquisition.
## **1.6 Investments**
Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in ‘net gains / (losses) on investments’ in the Statement of Financial Activities if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment.
## **1.7 Debtors and creditors receivable / payable within one year**
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.
## **1.8 Financial instruments**
The trust only financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
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**ROYAL SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS ASHFORD TENTERDEN AND DISTRICT BRANCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **1.9 Tax**
The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.
## **1.10 Going concern**
The financial statements have been prepared on a going concern basis as the Trustees believes that no material uncertainties exist. The Trustees has considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.
As already noted in the Trustees’ Report there has been an impact on income as a result of the COVID-19 lockdown, with the shop closed and rehoming fees reduced. A large amount of work has been untaken by members of staff to increase donations through social media campaigns, which continue to be well supported. All government support offered has been taken up where relevant and applications for grants have been made to other bodies where appropriate. All measures have been taken to reduce costs during this period. The investments we hold are for the medium to long-term and therefore expect to see a recovery from the current impact on value and income.
The charity, as a branch of the RSPCA, does receive support, financial and otherwise, from other branches, the Regional Board and the National Society. All of these have been subject to the impact of COVID-19 and as such we do not believe that we should rely to the same level of input going forward although of course we hope that it does. For example we expect door-to-door grant to remain similar for the coming year, as this is retrospective, however are planning for a significant drop the following year. We are however satisfied, based on past results, that we are robust as a stand-alone organisation and will continue to work during 2021 to mitigate any such impacts. As a result, as at the date of this report, the Board of Trustees are confident that the charity will continue to be able to operate during the next 12 months and is therefore currently a going concern. As such we believe that the accounts give a true and fair view and that there are no changes required for post balance sheet events.
## **1.11 Judgements and key sources of estimation uncertainty**
Accounting estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 10 for the carrying amount of the property plant and equipment, and note 1.5 for the useful economic lives for each class of assets.
|**2**
**Income from donations and legacies**
Membership subscriptions
Donations
**3**
**Income from charitable activites**
Cattery
Safe Haven|**2020**
**£**
391
12,014
12,405
**2020**
**£**
73,564
4,746
78,310|**2019**
**£**
36
4,566|
|---|---|---|
|||4,602|
|||**2019**
**£**
73,608
4,456|
|||78,064|
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## **ROYAL SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS ASHFORD TENTERDEN AND DISTRICT BRANCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
|**4**
**Income from other trading activities**
Shop takings
Fundraising events
RSPCA Door to Door
Other
**5**
**Analysis of expenditure**
**Raising funds**
Shop
Other
Investment manager's charges
**Charitable activities**
Cattery
**6**
**Allocation of support costs**
Rates, water and sewerage
Light and heat
Motor expenses
Telephone
Printing, postage and stationery
Computer and website costs
Insurance
Other
Governance costs (note 7)
**7**
**Governance costs**
Independent examiner's remuneration
**8**
**Staff costs**
Wages and salaries
Social security costs
Pension costs|**2020**
**£**
8,231
1,813
25,173
3,414
38,631
**Staff**
**Costs**
**Direct**
**Costs**
**Support**
**Costs**
**2020**
**£**
**£**
**£**
**£**
-
3,460
2,545
6,005
-
1,920
4,947
6,867
-
2,000
-
2,000
100,286
48,437
18,283
167,006
100,286
55,817
25,775
181,878
**Cattery**
**Shop**
**Other**
**2020**
**£**
**£**
**£**
**£**
5,594
1,841
-
7,435
6,587
524
-
7,111
-
-
113
113
997
180
-
1,177
639
-
85
724
-
-
520
520
314
-
845
1,159
4,152
-
2,409
6,561
-
-
975
975
18,283
2,545
4,947
25,775
**2020**
**£**
975
975
**2020**
**£**
96,496
2,102
1,688
100,286|**2019**
**£**
40,101
4,961
26,739
4,591|
|---|---|---|
|||76,392|
|||**2019**
**£**
11,609
19,765
2,000
176,197|
|||209,571|
|||**2019**
**£**
8,638
7,917
1,097
1,687
1,938
880
845
5,978
950|
||18,283
2,545
4,947|29,930|
|||**2019**
**£**
950|
|||950|
|||**2019**
**£**
95,220
3,185
1,588|
|||99,993|
Average number of staff, by headcount, in the year was 6 (2019: 6).
No member of staff earned more than £60,000 during the year (2019: nil).
- 14 -
## **ROYAL SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS ASHFORD TENTERDEN AND DISTRICT BRANCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **9 Trustees' and key management personnel remuneration and expenses**
The Trustees neither received nor waived any remuneration (including pension benefits) during the year (2019: £Nil).
No Trustees (2019: 1) received reimbursed travel related expenses during the year (2019: 1 trustee - £50). All reimbursed expenses are incurred exclusively for charitable purposes.
The Trustees consider the Trustees comprise the key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis. All Trustees give of their time freely and no trustee received remuneration in the year. Key management personnel salaries amounted to £27,759 (2019: £26,806).
## **10 Tangible fixed assets**
|**Cost / deemed value:**
As at 1 January 2020
Additions
Disposals
As at 31 December 2020
**Depreciation**
As at 1 January 2020
Charge
Depreciation on disposals
As at 31 December 2020
**Net Book Value**
As at 31 December 2020
As at 31 December 2019|**Freehold**
**buildings**
**Cattery set**
**up costs**
**Fixtures &**
**fittings**
**other**
**Fixtures &**
**fittings**
**catter**
**Motor**
**Vehicles**
**£**
**£**
**£**
**£**
**£**
375,000
84,805
4,691
21,204
2,500
-
-
856
-
-
-
-
-
-
(2,500)
375,000
84,805
5,547
21,204
-
37,500
71,041
4,691
21,204
2,500
7,500
4,241
24
-
-
-
-
-
-
(2,500)
45,000
75,282
4,715
21,204
-
330,000
9,523
832
-
-
337,500
13,764
-
-
-|**Total**
**£**
488,200
856
(2,500)|
|---|---|---|
|||486,556|
|||136,936
11,765
(2,500)|
|||146,201|
|||340,355|
|||351,264|
The freehold buildings were revalued in May 2014 by Taylor Riley Stafford, Chartered Surveyors, on an appraisal for marketing purposes. Its original cost was £9,033.
- 15 -
## **ROYAL SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS ASHFORD TENTERDEN AND DISTRICT BRANCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
|**11**
**Fixed asset investments**
**Market value at 1 January 2020**
Unrealised losses
**Market value at 31 December 2020**
**Historical cost**|**Total**
**£**
203,910
(29,501)|
|---|---|
||174,409|
||148,491|
The fair value of the listed investments is determined by reference to the mid-market value of shares at the Balance Sheet date.
Investments at fair value compromise:
|Equities
Overseas equities
UK Fixed interest
Overseas Fixed interest
Property
Other
Investment assets split between UK and those outside the UK:
UK Investments
Non-UK Investments
The Charity held the following investments in excess of 5% of the total value.
BP
Royal Dutch Shell
GlaxoSmithKline
Temple Bar Investment Trust
M & G Investment Man. Global Fr High Yield
Murray International Trust
BNY Mellon
Primary Health Properties
Rio Tinto
GCP Infrastructure
HICL Infrastructure
HSBC Holdings|**2020**
**£**
72,604
38,135
11,979
21,754
17,091
12,846
174,409
114,520
59,889
174,409
**2020**
**£**
5,097
6,298
10,066
11,454
14,612
15,764
14,083
17,091
16,422
11,979
12,846
5,682|**2019**
**£**
94,150
41,109
14,520
23,583
17,909
12,639|
|---|---|---|
|||203,910|
|||139,218
64,692|
|||203,910|
|||**2019**
**£**
9,435
11,199
13,341
17,724
15,307
17,626
13,933
17,909
13,508
14,520
12,639
8,879|
- 16 -
## **ROYAL SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS ASHFORD TENTERDEN AND DISTRICT BRANCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
|**12**
**Debtors**
Trade debtors
Other debtors
Prepayments and accrued income
**13**
**Creditors: amounts falling due within one year**
Trade creditors
Accruals and deferred income
Other creditors|**2020**
**2019**
**£**
**£**
8,111
1,749
3,385
8,934
2,501
2,962|
|---|---|
||13,997
13,645|
||**2020**
**2019**
**£**
**£**
13,496
6,051
2,986
4,195
2,386
1,106|
||18,868
11,352|
## **14 Designated funds**
|Fixed asset reserve
Investment reserve
Cattery improvements
Exploration of another shop
option / Clinic
Neuturing Bus alternatives|**Balance at 1**
**January 2020**
**New**
**designations**
**Designations**
**released**
**Balance at 31**
**December**
**2020**
**£**
**£**
**£**
**£**
351,264
-
(10,909)
340,355
203,910
-
(29,501)
174,409
15,000
-
(15,000)
-
20,000
-
(20,000)
-
10,000
-
(10,000)
-|
|---|---|
||600,174
-
(85,410)
514,764|
|**Designated funds - 2019**
Fixed asset reserve
Investment reserve
Cattery improvements
Exploration of another shop
option / Clinic
Neuturing Bus alternatives
Dog boarding and support for|**Balance at 1**
**January 2019**
**New**
**designations**
**Designations**
**released**
**Balance at 31**
**December**
**2019**
**£**
**£**
**£**
**£**
363,004
-
(11,740)
351,264
188,226
15,684
-
203,910
15,000
-
-
15,000
15,000
5,000
-
20,000
10,000
-
-
10,000
5,000
-
(5,000)
-|
|---|---|
||596,230
20,684
(16,740)
600,174|
## _Fixed asset reserve_
The fixed asset reserve represents fixed assets which are not considered to be general free reserves as they represent buildings and equipment to carry out charitable activities.
## _Investment reserve_
The investment reserve represents investments which are not considered to be general free reserves and is used for income generation.
- 17 -
## **ROYAL SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS ASHFORD TENTERDEN AND DISTRICT BRANCH NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **14 Designated funds**
## _Neutering Bus alternatives_
This fund is to explore alternatives to the current Neutering Bus should it cease to be available in the future.
## _Exploration of another shop option / Clinic_
During the year it has not been feasible to explore this option, in the main due to the lack of hands on support to run another shop. It is being discussed to replace this fund at the same amount to explore the option of re-opening the clinic at the existing Branch premises, where one previously existed many years ago.
## _Cattery improvements_
This fund represented the exploration of improvement required to the cattery.
## _Release of funds_
Following the national lockdown and the unknown impact of COVID 19 on the cattery’s ability to generate funds during 2020 and 2021 the Trustees agreed to release the designations in respect of the neutering bus alternative, the exploration of a new shop/clinic and the cattery improvements. This was to allow the Trustees to assess the impact on the charity's reserves as a result of COVID-19
|**15**|**Analysis of net assets between funds**|**Unrestricted**|**Designated**|**Restricted**||
|---|---|---|---|---|---|
|||**funds**|**funds**|**funds**|**Total funds**|
|||**£**|**£**|**£**|**£**|
||Fixed assets|-|340,355|-|340,355|
||Investments|-|174,409|-|174,409|
||Current assets|59,629|44,999|-|104,628|
||Current liabilities|(18,868)|-|-|(18,868)|
||Total|40,761|559,763|-|600,524|
||**Analysis of net assets between funds - 2019**|||||
|||**Unrestricted**|**Designated**|**Restricted**||
|||**funds**|**funds**|**funds**|**Total funds**|
|||**£**|**£**|**£**|**£**|
||Fixed assets|-|351,264|-|351,264|
||Investments|-|203,910|-|203,910|
||Current assets|52,246|44,999|-|97,245|
||Current liabilities|(11,352)|-|-|(11,352)|
||Total|40,894|600,173|-|641,067|
## **16 Related Party Transactions**
The Branch constitution is approved by the national RSPCA umbrella body, charity no. 219099, which is considered a related party for accounting purposes. During the financial year, the Branch received a total of £25,173 (2019: £26,739) in grant funding from the national RSPCA for the Branch's purposes. The Branch also receives a number of umbrella body services, including legacy administration under the Branch Legacy Scheme, membership administration and practical guidance and assistance from a Branch Support Specialist employed by the national Society. The Branch paid the national society £551 (2019: £551) as a Branch Annual Contribution.
## **17 COVID-19**
In 2020 the world was shaken with the onset of Covid-19. The Trustees have assessed the operational and financial impact on the charity in the Strategic Report on pages 2, 3, 4 and 5 and in the going concern statement at note 1.10.
- 18 -