**REGISTERED COMPANY NUMBER: 00662947 REGISTERED CHARITY NUMBER: 222436**
Report of the Trustees and Consolidated Financial Statements for the Year Ended 31 December 2024 for THE BIRMINGHAM DOGS HOME
**Prime Chartered Accountants and Registered Auditors Corner Oak 1 Homer Road Solihull West Midlands B91 3QG**
THE BIRMINGHAM DOGS HOME
Contents of the Financial Statements for the year ended 31 December 2024
||Page|
|---|---|
|Reference and Administrative Details|1 to 2|
|Chairman's Statement|3|
|Report of the Trustees|4 to 9|
|Report of the Independent Auditors|10 to 12|
|Consolidated Statement of Financial Activities|13|
|Consolidated and Charity Statement of Financial Position|14|
|Consolidated Statement of Cash Flows|15|
|Notes to the Financial Statements|16 to 25|
THE BIRMINGHAM DOGS HOME
Reference and Administrative Details for the Year Ended 31 December 2024
|Trustees||
|---|---|
||Ms J P Laraway (Chair)|
||Mrs C H Taylor|
||Mr P D Barnett|
||Mr R J Venner|
||Ms C Powell|
||Mr M Lampard|
||Mr A Whelan|
||Ms L Millard|
||Mrs N Ahmed|
||Mr D Godfrey|
|**Patrons**|Lord Mayor of Birmingham|
||Chief Constable of West Midlands Police|
||Earl of Aylesford|
||Mayor of Solihull|
||Victoria Vere Nicoll|
|**Officers**|S Wynde (Treasurer)|
||G Webber (Chief Executive)|
|**Registered office**|Catherine-de-Barnes Lane|
||Catherine-de-Barnes|
||Solihull|
||B92 0DJ|
|**Registered company number**|00662947|
|**Registered charity number**|222436|
|**Auditors**|Prime Accountants|
||Corner Oak|
||1 Homer Road|
||Solihull|
||B91 3QG|
|**Bankers**|Lloyds Bank PLC|
||9-11 Poplar Road|
||Solihull|
||B91 3AN|
||Metro Bank|
||119 High St, Solihull B91 3SR|
|**Solicitors**|Higgs LLP|
||3 Waterfront Business Park|
||Brierley Hill|
||West Midlands|
||DY5 1LX|
1
THE BIRMINGHAM DOGS HOME
## Reference and Administrative Details for the Year Ended 31 December 2024
## **Investment managers**
Rathbones 30 Gresham Street London EC2V 7QP
CCLA Investment Management Limited Senator House, 85 Queen Victoria Street London EC4V 4ET
2
THE BIRMINGHAM DOGS HOME
## Chairman's Statement for the year ended 31 December 2024
It is a pleasure to present my report for the year ended 31 December 2024, my second year as Chair of Birmingham Dogs Home. It has been another year of challenges for the organisation which has been met with resilience and compassion in the face of the overwhelming effect the legislation on XL Bullies had on us and the wider dog rescue sector. I particularly want to thank the kennel staff and veterinary team for the way they managed the situation and dealt with the undoubted emotional strain it placed upon them all.
We are continuing to develop the Home in line with our strategic plan and the plans to refurbish, modernise and future proof the Wolverhampton rescue centre are now well under way. The Behaviour and Training Centre completed last year has changed the lives of many of our dogs and helped them find loving homes and, our veterinary clinic goes from strength to strength, gaining an excellent reputation with the wider public in the area. Positive evidence of our determination to be forward thinking in our ambitions.
Financially, we were in deficit in 2024 with an increase in costs of 18.5%. Although the deficit was less than we had budgeted, it underlines the need for us to continue to work hard to develop a broader range of income streams to underpin the generous legacies we currently rely upon. We are extremely grateful and appreciative for the generous support we receive from our supporters and donors, especially in these financially challenging times for everyone. Finally, I would like to thank all of the staff who work so hard for the benefit of the dogs in our care. Without them we could not achieve the heartwarming outcomes for the thousands of dogs that pass through our care. They are a fantastic team and I commend them all.
J Laraway
Chair of Trustees
3
THE BIRMINGHAM DOGS HOME
## Report of the Trustees for the year ended 31 December 2024
The Trustees, who are also directors of the charity for the purposes of the Companies Act, submit their annual report and the audited financial statements for the year ended 31 December 2024. 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 the 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 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 2019).
## **Objectives, activities and aims**
The primary objective of the charity is to take in and care for stray and abandoned dogs from the West Midlands area, reuniting lost pets with their owners and rehoming abandoned dogs to new loving homes. During the year:
1,771 dogs came into care; 300 dogs were reunited with their owners;
1,012 homeless dogs have gone on to have new lives in new homes;
9 litters, totalling 67 puppies were born to homeless mothers at our centres;
153 dogs were in care at the end of 2024;
242 of the dogs that came into our care were young dogs under 12 months of age.
The Fundraising department has continued to be very proactive with various new fundraising initiatives and outreach programmes which utilise the improved facilities now available.
## **Public benefit**
The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives and planning future activities. We believe our work benefits the public in a variety of ways:-
- Providing assistance to local authorities and the general public by taking in and rehoming stray and abandoned dogs.
- Rehoming dogs safely to those who want and are able to provide a good home, providing companionship to individuals and families.
- Reuniting lost and stray dogs with their owners.
- Reducing the number of stray dogs on the streets and therefore reducing potential stray colonies, faeces in public places and public nuisance.
- Providing information and advice to owners on the care of dogs and the need for vaccinations and neutering.
- Educating young people in schools and youth groups about the welfare and respect of dogs.
## **Strategic report**
## **Achievements and performance**
The financial performance of the Charity is summarised below. Before gains on investments the Charity incurred a deficit of £844,734 which was less than budget. The increase was due to a reduction in legacy income after the exceptionally high income credited in 2023. There were net gains on investments of £386,240 reducing the total deficit to £458,494.
The Charity continually reviews its aims and objectives set out in the Public Benefit section above at Staff Management meetings which are held monthly.
The major risks to which the Charity is exposed are considered at meetings of the Risk Sub-committee of the Trustees which are held three times a year. A Risk Register is maintained and reviewed at these meetings. A Disaster Recovery Plan has been formulated and an element of it tested during the year.
4
THE BIRMINGHAM DOGS HOME
## Report of the Trustees for the year ended 31 December 2024
The Financial Statements for the year show net deficit of £458,494 (2023:surplus of £2,720,778). This was after taking into account net gains on investments of £386,240 (2023 gains £553,548).
Expenditure for the year increased to £4,230,932 (2023: £3,571,851).
The investment market continued to be volatile in the year but the resurgence in the stock market gave rise to gains on investments of £386,240 (2023 £553,548 ).
Capital expenditure for the year totalled £106,396
Overall, the total funds of the Charity have decreased by the deficit of £458,494.
The cash flow statement (page 15) is included to comply with the SORP requirements.
## **Plans for future periods.**
These are outlined in the Reserves Policy Development Fund below.
## **Investment policy**
The investment objectives are:
- The creation of a sufficient financial return to enable the Charity to carry out its purposes effectively and without interruption.
- The maintenance and, if possible, enhancement of the investment funds whilst they are invested.
- To obtain balance between capital growth and income, so that the Charity can meet future as well as current needs.
The Trustees have agreed on a 'medium' risk profile by investing in a mix of equities, fixed interest and monetary assets.
The Trustees have delegated their investment powers over a proportion of the assets to Rathbones Ltd. The investment manager is responsible for carrying out day to day investment decisions including the acquisition and realisation of investments on behalf of the Trustees.
A further proportion of the Charity's assets are invested with a specialised investment fund, designed for the Charity Sector, managed by CCLA Investment Management Ltd.
Both managers report on the performance of the investments on a regular basis.
Where funds are set aside for future capital expenditure, the policy is normally to invest in fixed term bank deposits.
The market value of investments held at 31 December 2024 amounted to £10,653,009 (2023: £9,139,043) and the income received during 2024 as a result of these investments totalled £302,480. Realised gains on these investments during the year totalled £737,362 with unrealised losses at 31 December 2024 of £221,863.
The Trustees consider that the performance of the investments against objectives for the year has been satisfactory in view of the volatility of the stock market.
## **Fundraising activity**
The charity uses internal appointees to undertake its fundraising activities. It has registered voluntarily with the Fundraising Regulator and monitors all fundraising undertaken on its behalf. It has received no complaints on fundraising activity and does not undertake fundraising in a way that might intrude on any person’s privacy or take advantage of vulnerable people.
5
THE BIRMINGHAM DOGS HOME
## Report of the Trustees for the year ended 31 December 2024
## **Reserves Policy Our Financial Sustainability and Future Ambitions**
## **Introduction**
Our charity’s rescue and rehoming operations, as well as our work supporting the physical and mental welfare of the animals we care for, requires us to maintain and refurbish our facilities and create new fit for purpose spaces, as our needs change. We also need to develop and invest in improved systems to underpin our growing operations, reflecting the needs of dog rescue at this time. This requires significant ongoing financial commitment and investment.
Our current challenges include caring for the high numbers of dogs being relinquished or brought to our centres as strays. We have been working at capacity and at times beyond kennel capacity for the last eighteen months. The high number of abandoned dogs we are receiving daily can be attributed to the current “cost of living crisis” with owners facing soaring inflation rates and the rising costs of everyday living in the UK today. This reflects trends across the sector, with dog abandonment increasing with the rising costs of living and the impact of an increase in people buying dogs during 2020 and 2021 according to research by the Association of Dogs and Cats Home.
We are also finding that many more dogs have behavioural issues, which can be ascribed to dogs being purchased during Covid “lockdowns” by inexperienced owners, and therefore not receiving the training nor socialising they needed. This means that the dogs we receive often need to be with us longer and have more support and training before they can be adopted. The increased length of stays, higher return rates and additional behavioural training needs of dogs, compounded by the universal increases of fuel and heating and supporting staff through difficult times, has meant that the cost of care per dog is currently significantly higher than in previous years.
The Charity’s Reserves Policy therefore has two objectives:
- A target of 18 months operational running costs which would be £5.04 million, held in free reserves to guard against fluctuations in income and cash flow requirements;
- To have funds to finance planned capital investment in the charity’s infrastructure which could be up to £6.8 million over the next 5 years as well as unplanned projects where the need arises including renewals of essential equipment, systems, vehicles and the operational infrastructure of buildings.
On an annual basis the Trustees will review the resources available to the charity to invest in reserves, to achieve the best balance between these objectives.
In setting the Reserves Policy, the Trustees are influenced by strategic risks facing the charity. The risks are kept under regular review. One of the main ones is that the majority of the Charity’s income comes from legacies and fundraising, which can be uncertain sources of revenue, subject to large yearly fluctuations and may not always provide the necessary funds to cover essential costs.
However, there will always be animals in need of our welfare and rehoming services and people who need our advice and support. As a Charity we are committed to a comprehensive ongoing service offering. To do this, we need to maintain a level of reserves should there be a short-term fall in income or an exceptional rise in costs. We have therefore designated our funds into the following areas to enable us to continue to operate and plan to meet future demands for our essential services as the largest rescue centre in the West Midlands, providing vital support to local authorities and the general public across the region.
## **Our Designation of Funds**
## **For Dogs Now**
## **The Operating Fund** :
The Charity’s reserves policy is to maintain funds to cover up to a maximum of the next 18 month’s running costs. This level of reserves would allow for a sufficient period to wind up the business of the Charity should closure be necessary, the length of time that will be necessary to make arrangements to rehome the dogs in our care, some of which can stay with us up to 18 months at the charity’s cost.
As at 31st December 2024 the charity had operating fund reserves of £5.04 million. This represents approximately 18 months of planned running costs of the Charity’s two rehoming centres and veterinary clinic including investment in fundraising. This represents 27% of the total funds.
## **The Property Fund** :
This is the written down value of the land and buildings and tangible fixed assets used by Birmingham Dogs Home. At 31st December 2024 this was £6.7 million. This represents 36% of the total funds.
6
## **For Dogs in the Future**
## **The Development Fund**
Working collaboratively with our community and sector partners, it is our aspiration to position ourselves as a central regional hub, providing a range of complementary services and resources to make the most impact to the lives of local dogs in need, at every stage in their journey.
The Charity’s reserves policy is to set aside funds for future development of existing facilities and services at both of its centres. To achieve this vision, the Development Fund represents the Trustees’ commitment to providing the highest standard of animal welfare for the dogs in our care. At 31st December 2024 this was £6.8 million. This represents 37% of the total funds.
As a progressive organisation, we have exciting ambitions for the future as we look to the next stage in our strategic planning.
We already know that we need to future proof our Wolverhampton rescue centre by refurbishing and modernising our facilities so that we can continue to provide the very best standards of animal welfare, as well as develop a range of complementary services needed by the community. The required investment for this project will be significant and is likely to need the majority of the funds in the Development Fund.
There is also a strong will to support the building of a new indoor training barn at our Solihull site, to enhance our ability to train and care for our dogs (whatever the weather!) and provide vital ongoing support services and resources for the local dog loving community which will require significant investment in the medium term. Investment also needs to be made in our outdoor facilities including creating new exercise paddocks and upgrading existing ones along with extending parking facilities for visitors.
To underpin our growth we need to make a significant financial commitment to upgrading our cross-site and crossdepartmental IT systems. As our charity has grown, so have our departments along with the information they need to share. Some of our older systems are no longer fit for purpose and need to be replaced whilst others need to be integrated to reduce duplication of both data and resources. This is a key undertaking and we have prudently set aside a proportion of our development funds accordingly.
To underpin our development ambitions, we need to continue to grow our fundraising and income generation to make the biggest impact we can for every dog and owner who needs us. We are working to a three year, carefully considered fundraising strategy, investing in both staff and resources to bring higher returns and enable us to direct more funds to our charitable activities in the future. We have also earmarked a proportion of our development funds to progress and develop our retail and trading income generating potential which will, in time, generate additional, reliable income streams to fund our work.
To this end our charity’s objectives continue to be to maintain an operating fund to provide security for the dogs in our care now, whilst also establishing a development fund to ensure future growth and sustainability, alongside our property fund which represents the land, buildings and tangible fixed assets we need to operate.
## **Proportional Designation of Funds**
**Key: Blue:** For Dogs Now **Purple:** For Dogs in the Future
**----- Start of picture text -----**
Funds
Restricted Fund
Operating Fund
Development Fund 27%
37%
36%
Property Fund
**----- End of picture text -----**
7
THE BIRMINGHAM DOGS HOME
## Report of the Trustees for the year ended 31 December 2024
## **Structure, governance and management**
## **Group Structure**
Members of the charitable group are The Birmingham Dogs Home Limited (a company limited by guarantee, registered in England and Wales and a registered charity) and its wholly owned subsidiary Birmingham Dogs Home (Trading) Limited which commenced trading on 1[st] October 2019. Since that date the trading activities of the Group have been carried out by Birmingham Dogs Home (Trading) Limited.
## **Governing document**
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
## **Charitable objects and constitution**
The Birmingham Dogs Home is a registered charity and is a company limited by guarantee with no share capital. It is governed by its memorandum and articles of association. These state the objects of the charity as being:-
- to provide and maintain a Home for the rescue of lost, unwanted, suffering and ownerless dogs and cats.
- to reunite lost animals with their owners; and
- to find permanent homes for unclaimed animals.
## **Trustees**
The Trustees who served throughout the year and up to the date of this report are named on page 1 of this report.
## **Recruitment and appointment of new Trustees**
The Board of Trustees aims to achieve a balance of skill mix within its numbers representing experience in commerce, business, and the professions, together with a diversity of backgrounds taking full account of gender and a love for the well-being of animals.
As to new Trustees, persons would be sought who help maintain the range and balance of skills as well as being able to contribute towards the effective governance of the Charity. Suitable interested persons, who are required to be members of the Charity, will initially go through a formal interview process with the Chairman and other Trustees where the strengths and other attributes of the person are explored and the role of the Dogs Home and that of a Trustee is explained. Those persons subsequently selected will be proposed and seconded and voted upon at a meeting of the Trustees. After appointment new Trustees will automatically retire at the next AGM and will seek reappointment for a three year term.
## **Induction and training of new Trustees**
A new Trustee is issued with an information pack containing details on the role and responsibilities of a Trustee, the Memorandum and Articles of Association of the Charity, the last year's audited accounts and annual review, the current budget and various relevant policy documents. The Trustee will be expected to have a meeting with the Chief Executive to discuss the Home's procedures and present plans, and to visit the two sites and to be introduced to the manager and other staff. Resources are available for new Trustees to attend courses if it is considered beneficial.
## **Organisation**
The Charity is organised by the Board of Trustees, Management Committee and sub-committees, who are responsible for the strategy, policies and financial plan adopted. The day to day running of the charity is controlled by the Chief Executive.
## **Risk review**
The Trustees review major risks to which the charity is exposed, and systems are established to mitigate those risks. External risks to funding are minimised by the Trustees' policy on reserves where reserves are maintained in order to produce a significant annual income. Internal risks are minimised by the implementation of procedures for authorisation of all transactions and projects and to ensure consistent quality of delivery for all operational aspects of the charitable company. These procedures continue to be under review with the help of an external consultant to ensure that they still meet the needs of the charity.
## **Arrangements for setting pay and remuneration of key management personnel.**
The Trustees consider the board of Trustees and the treasurer as comprising the key management personnel of the charity. All Trustees give of their time freely and no Trustee remuneration was paid in the year. Details of Trustee expenses and related party transactions are disclosed in note 14 and note 24 to the accounts.
The pay of the charity’s treasurer is reviewed annually and normally increased in accordance with average earnings.
8
## THE BIRMINGHAM DOGS HOME
## Report of the Trustees for the year ended 31 December 2024
## **Statement of Trustees responsibilities**
The Trustees (who are also the directors of The Birmingham Dogs Home for the purposes of company law) are responsible for preparing the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the Trustees are required to:-
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charity SORP;
- make judgements and estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the Trustees are aware:-
- there is no relevant audit information of which the charitable company's auditors are unaware; and
- the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
## **Auditors**
The auditors, Prime Accountants, will be proposed for re-appointment at the forthcoming Annual General Meeting.
Approved by order of the board of Trustees …………………………………………………..and signed on its behalf by:
J Laraway Chair
9
## THE BIRMINGHAM DOGS HOME
## Report of the Independent Auditors to the Members of The Birmingham Dogs Home
## **Opinion**
We have audited the financial statements of The Birmingham Dogs Home (the ‘parent charitable company’) and its subsidiary (the 'group') for the year ended 31 December 2024 which the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and notes to the financial statements, including 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 parent charitable company’s affairs as at 31 December 2024, 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 responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group and parent 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 trustees' annual report[3] , 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.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
## **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][4] directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent charitable company, 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.
10
THE BIRMINGHAM DOGS HOME
## Report of the Independent Auditors to the Members of
## The Birmingham Dogs Home
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement the trustees (who are also the directors of the parent 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.
## **Auditor responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the charity through discussions with trustees and other management and from our commercial knowledge and experience;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including Charities Act 2011, taxation legislation, data protection, antibribery, employment, environmental and health and safety legislation;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company; and
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence.
We assessed the susceptibility of the Charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining accounting estimates were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meeting of those charged with governance;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC and other relevant parties.
11
## THE BIRMINGHAM DOGS HOME
## Report of the Independent Auditors to the Members of
## The Birmingham Dogs Home
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.
## **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 we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
## …………………….
Jeremy Kitson BA FCA Senior Statutory Auditor Prime Chartered Accountants Corner Oak 1 Homer Road Solihull West Midlands B91 3QG
12
## **THE BIRMINGHAM DOGS HOME**
**Consolidated Statement of Financial Activities (including income and expenditure account) For the year ended 31 December 2024**
|||**Unrestricted**|**Restricted**|**Total**|Total|
|---|---|---|---|---|---|
||**Note**|**funds**|**fund**|**2024**|2023|
|||**£**|**£**|**£**|£|
|**Income and endowments from**||||||
|Donations and legacies|**2**|**2,190,470**||**2,190,470**|4,982,161|
|**Charitable activities**||||||
|Re-homing dogs|**5**|**660,946**|**-**|**660,946**|366,819|
|**Other trading activities**|**3**|**159,776**|**22,500**|**182,276**|103,198|
|**Investment income**|**4**|**302,480**|**-**|**302,480**|240,037|
|**Other income**|**6**|**50,026**|**-**|**50,026**|46,866|
|||**───────**|**───────**|───────|───────|
|**Total incoming resources**||**3,363,698**|**22,500**|**3,386,198**|5,739,081|
|||**═══════**|**═══════**|═══════|═══════|
|**Expenditure on**||||||
|Raising funds|**8**|**846,653**|**-**|**846,653**|999,360|
|Charitable activities||||||
|Re-homing dogs|**9**|**3,384,279**||**3,384,279**|2,572,491|
|**Other expenditure**||**-**|**-**|**-**|-|
|||**───────**|**───────**|───────|───────|
|**Total resources expended**||**4,230,932**|**-**|**4,230,932**|3,571,851|
|||**═══════**|**═══════**|═══════|═══════|
|**Net (expenditure)/income before investment**|**gains/ (losses)**|**(867,234)**|**22,500**|**(844,734)**|2,167,230|
|Net gains/ (losses) on investment|**17**|**386,240**|**-**|**386,240**|553,548|
|||**───────**|**───────**|───────|───────|
|**Net income/ (expendiure)**||**(480,994)**|**22,500**|**(458,494)**|2,720,778|
|Transfers between funds||**-**|**-**|**-**|-|
|||**───────**|**───────**|───────|───────|
|**Net movement in funds**||**(480,994)**|**22,500**|**(458,494)**|2,720,778|
|**Funds brought forward at 1 January 2024**||**19,037,673**|**46,900**|**19,084,573**|16,363,795|
|||**───────**|**───────**|───────|───────|
|**Funds carried forward at 31 December 2024**||**18,556,679**|**69,400**|**18,626,079**|19,084,573|
|||**═══════**|**═══════**|═══════|═══════|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure is derived from continuing activities.
_The notes on pages 17 to 26 form part of these financial statements._
## **THE BIRMINGHAM DOGS HOME**
## **Consolidated and Charity Statement of Financial Position As at 31 December 2024**
|||**Group**|**Charity**|Group|Charity|
|---|---|---|---|---|---|
||**Note**|**2024**|**2024**|2023|2023|
|||**£**|**£**|£|£|
|**Fixed Assets**||||||
|Tangible fixed assets|**16**|**6,779,356**|**6,779,356**|7,289,847|7,289,847|
|Investments at market value|**17**|**10,653,009**|**10,653,010**|9,139,043|9,139,044|
|||**───────**|**───────**|───────|───────|
|||**17,432,365**|**17,432,366**|16,428,890|16,428,891|
|||**═══════**|**═══════**|═══════|═══════|
|**Current Assets**||||||
|Stock|**18**|**48,093**|**48,093**|38,726|38,726|
|Debtors|**19**|**1,238,405**|**1,238,610**|2,537,402|2,558,481|
|Cash at bank and in hand||**191,226**|**191,177**|309,578|309,380|
|||**───────**|**───────**|───────|───────|
|||**1,477,724**|**1,477,880**|2,885,706|2,906,587|
|||**═══════**|**═══════**|═══════|═══════|
|**Creditors: Amounts falling due within**||||||
|**one year**|**20**|**(284,010)**|**(317,680)**|(230,023)|(227,365)|
|||**───────**|**───────**|───────|───────|
|**Total assets less total liabilities**||**18,626,079**|**18,592,566**|19,084,573|19,108,113|
|||**═══════**|**═══════**|═══════|═══════|
|**Funds**||||||
|**Unrestricted funds**||||||
|Operating fund|**21**|**5,053,918**|**5,020,404**|3,747,826|3,771,366|
|Designated funds|**21**|**13,480,261**|**13,480,262**|15,289,847|15,289,847|
|**Restricted funds**|**21**|**91,900**|**91,900**|46,900|46,900|
|||**───────**|**───────**|───────|───────|
|||**18,626,079**|**18,592,566**|19,084,573|19,108,113|
|||**═══════**|**═══════**|═══════|═══════|
The charity has prepared group accounts in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Act 2011.
The deficit generated by the charity for the financial year was £515,547 (2023: £2,744,318 surplus)
Approved by the Board of Trustees on ……………………………………………………………………………….. and signed on their behalf by
J Laraway **Chairman**
Registered charity in England and Wales - 222436. Company Registration Number - 00662947
_The notes on pages 17 to 26 form part of these financial statements._
**THE BIRMINGHAM DOGS HOME**
## **Consolidated Statement of Cash Flows**
## **For the year ended 31 December 2024**
|||**2024**|2023|
|---|---|---|---|
||**Note**|**£**|£|
|**Cash flows from operating activities:**|**26**|**684,051**|241,072|
|||───────|───────|
|**Net cash provided by operating activities**||**684,051**|241,072|
|||───────|───────|
|**Cash flows from investing activities:**||||
|Purchase of tangible fixed assets||**(106,396)**|(1,407,115)|
|Purchase of fixed asset investments||**(4,530,553)**|(1,258,595)|
|Sale of fixed asset investments||**3,532,066**|1,037,822|
|Interest received||**302,480**|240,037|
|||───────|───────|
|**Net cash (used in) investing activities**||**(802,403)**|(1,387,851)|
|||───────|───────|
|**Change in cash and cash equivalents in the reporting period**||**(118,352)**|(1,146,779)|
|**Cash and cash equivalents at the beginning of the reporting period**||**309,578**|1,456,357|
|||───────|───────|
|**Cash and cash equivalents at the end of the reporting period**||**191,226**|309,578|
|||═══════|═══════|
_The notes on pages 16 to 25 form part of these financial statements._
## **THE BIRMINGHAM DOGS HOME**
## **Notes to the Financial Statements For the year ended 31 December 2024**
## **1 Accounting Policies**
## **Basis of preparing the financial statements**
The Birmingham Dogs Home Limited is a charitable company in the United Kingdom. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information on page 1 of these financial statements.
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention with the exception of investments which are included at market value.
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.
## **Basis of consolidation**
These accounts consolidate those of the Charity and its wholly owned trading subsidiary, Birmingham Dogs Home (Trading) Limited. These are adjusted, where appropriate, to conform to group accounting policies. Birmingham Dogs Home (Trading) Limited was incorporated on 21 November 2018 and commenced to trade on 1 October 2019. It's results are consolidated from the date it commenced to trade. Comparatives are presented on a group basis. A separate Statement of Financial Activities and Income an Expenditure Account for the charity have not been presented in accordance with the exemption afforded by section 408 of the Companies Act 2006. The charity deficit for 2024 was £515,547 (2023: £2,744,318 surplus). This is made up of Income of £3,323,672 (2023: £5,759,445), Expenditure of £4,225,459 (2023: £3,568,675) and net gain on investments of £386,240 (2023: £553,548).
## **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 company to continue as a going concern. The trustees make this assessment in respect of a period of one year from the date of authorisation for issue of the financial statements and have concluded that the charity has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the charity’s ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements.
## **Income**
All incoming resources are 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.
Donated assets are recognised on the balance sheet and initially measured at their valuation. Fair values for donated assets are estimated by reference to market prices.
Where practicable, gifts in kind donated for distribution to the beneficiaries of the charity are included in stock and donations in the financial statements upon receipt. If it is impracticable to assess the fair value at receipt or if the costs to undertake such a valuation outweigh any benefits, then the fair value is recognised as a component of donations when it is distributed and an equivalent amount recognised as charitable expenditure.
For legacies, receipt must be recognised when it is probable that it will be received. Receipt is normally probable when: there has been a grant of probate; the executors have established that there are sufficient assets in the estate, after settling any liabilities, to pay the legacy; and any conditions attached to the legacy are either within the control of the charity or have been met.
The charity receives income from local authorities in relation to provision of stray dog services.
Income from trading activities includes income earned from fundraising events and trading activities such as dog boarding 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. Other income relates to pet plan commission.
Investment income is earned through holding assets for investment purposes such as shares and property. It includes dividends, interest and rent. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend income is recognised as the charity's right to receive payment is established.
**THE BIRMINGHAM DOGS HOME**
**For the year ended 31 December 2024**
**1 Accounting Policies (continued)**
## **Notes to the Financial Statements**
## **Expenditure**
All expenditure is accounted for gross, on an accruals basis and is stated net of Valued Added Tax, where applicable.
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
> Expenditure on charitable activities
No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102). Further detail is given in the Trustees' Annual
## **Allocation and apportionment of costs**
Resources expended are allocated to the particular activity where the cost relates directly to that activity.
## **VAT**
VAT recoverable by the Charity is shown in debtors. The Birmingham Dogs Home Limited and Birmingham Dogs Home (Trading) Limited are part of a VAT group.
## **Fixed assets**
Fixed assets are included at cost or valuation, items below £1,000 will be normally expensed through the statement of financial activities.
## **Depreciation**
Depreciation is provided to write off the cost or valuation, less estimated residual values of all fixed assets except freehold land, over their expected useful lives. It is calculated at the following rates:
- Buildings 5% of the cost per annum - Fixtures and fittings 10% of the cost per annum Vehicles - 25% of the cost per annum - Computer equipment 33.33% of the cost per annum
Assets in the course of construction are included at cost. Depreciation on these assets is not charged until they are brought into use.
## **Stocks**
Stocks are valued at the lower of cost or net realisable value. Unsold donated items are not included.
## **Taxation**
The charity is exempt from corporation tax on its charitable activities.
## **Fund Accounting**
Unrestricted funds are donations and other income resources receivable or generated for the objects of the charity without further specified purpose and are available as general funds.
Designated funds are unrestricted funds earmarked by the management committee for particular purposes.
Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund, together with a fair allocation of management and support costs.
## **Pension costs and other post-retirement benefits**
The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity. The pension cost charge represents contributions paid by the charity to the fund.
## **Hire purchase and leasing commitments**
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against income on a straight line basis over the period of the lease.
## **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.
## **Critical accounting judgements and key sources of estimation uncertainty**
In the application of the accounting policies, trustees are required to make judgement, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the
Judgements made by the Trustees in the application of these accounting policies that have a significant effect on the financial statements and estimates with a significant risk of material misstatement in the next year, are deemed to be in relation to the depreciation rates of tangible fixed assets and are discussed above.
## **THE BIRMINGHAM DOGS HOME**
## **Notes to the Financial Statements**
## **For the year ended 31 December 2024**
## **1 Accounting Policies (continued)**
The areas where these judgements and estimates have been made include the following for the group:
## a) Depreciation and residual values
The Trustees have reviewed the asset lives and associated residual values of all tangible fixed asset classes, and have concluded that the asset lives and residual values are appropriate.
## b) Accrued income
Accrued income includes legacy income amounts. In recognising accrued legacy income, the Trustees have considered the probability of receiving each legacy. Each legacy is assessed to determine an appropriate allowance which reflects the possibility of not subsequently receiving the full income amounts.
## **2 Donations and legacies**
|**2**|**Donations and legacies**||||
|---|---|---|---|---|
||||**Total**|Total|
||||**2024**|2023|
||||**£**|£|
||Donations||**544,805**|540,111|
||Donated assets||**-**|-|
||Legacies||**1,645,665**|4,442,050|
||||───────|───────|
||||**2,190,470**|4,982,161|
||||═══════|═══════|
|**3**|**Other trading activities**||||
||||**Total**|Total|
||||**2024**|2023|
||||**£**|£|
||Fundraising events||**15,090**|31,236|
||Shop income||**5,383**|4,906|
||Income of Trading subsidiary (see note 7)||**161,803**|67,056|
||||───────|───────|
||||**182,276**|103,198|
||||═══════|═══════|
|**4**|**Investment income**||||
||||**Total**|Total|
||||**2024**|2023|
||||**£**|£|
||Deposit account interest||**59,419**|7,194|
||Dividends and interest from listed investments||**243,061**|232,843|
||||───────|───────|
||||**302,480**|240,037|
||||═══════|═══════|
|**5**|**Income from charitable activities**||||
||||**Total**|Total|
||||**2024**|2023|
|||**Activity**|**£**|£|
||Income from general public|Re-homing dogs|**206,863**|205,870|
||Local authority contracts|Re-homing dogs|**454,083**|160,949|
||Government grants||**-**|-|
||||───────|───────|
||||**660,946**|366,819|
||||═══════|═══════|
|**6**|**Other income**||||
||||**Total**|Total|
||||**2024**|2023|
||||**£**|£|
||Pet plan commission received||**47,313**|44,193|
||Miscellaneous income||**84**|501|
||Feed in tariff||**2,629**|2,172|
||||───────|───────|
||||**50,026**|46,866|
||||═══════|═══════|
## **THE BIRMINGHAM DOGS HOME**
## **Notes to the Financial Statements**
## **For the year ended 31 December 2024**
## **7 Trading company**
The wholly owned trading subsidiary Birmingham Dogs Home (Trading) Limited is incorporated in the United Kingdom (company number 11689015) and pays profits, which are surplus to trading requirements, to the charity under a deed of covenant.
|The summary financial performance of the subsidiary is:|||
|---|---|---|
||**2024**|**2023**|
||**£**|**£**|
|Turnover|**161,803**|**70,194**|
|Administrative expenses|**(104,750)**|**(90,596)**|
||───────|───────|
|Operating (Loss)/ Profit|**57,053**|**(20,402)**|
|Taxation||**-**|
||───────|───────|
|(Loss)/ Profit before distribution|**57,053**|**(20,402)**|
||═══════|═══════|
- **8 Raising funds**
|**8**|**Raising funds**|||||
|---|---|---|---|---|---|
|||||**Total**|Total|
|||||**2024**|2023|
|||||**£**|£|
||Staff costs|||**594,379**|533,380|
||Veterinary costs|||**99,443**|167,568|
||Investment manager fees|||**30,129**|29,091|
||Publicity|||**84,735**|97,585|
||Show costs|||**34,857**|38,016|
||Office expenses and administrative support|||**3,110**|65,215|
||Vehicle costs|||**-**|3,690|
||Depreciation|||**-**|64,815|
|||||───────|───────|
|||||**846,653**|999,360|
|||||═══════|═══════|
|**9**|**Charitable activity costs**|||||
|||**Direct costs**||**Support costs**|**Totals**|
|||**(see note**|**10)**|**(see note 11)**||
||||**£**|**£**|**£**|
||**Charitable activities**|**3,348,947**||**35,332**|**3,384,279**|
|||═══════||═══════|═══════|
|**10**|**Direct costs of charitable activities**|||||
|||||**Total**|Total|
|||||**2024**|2023|
|||||**£**|£|
||Staff costs|||**1,531,956**|1,392,253|
||Sundries|||**61,894**|38,571|
||Yard and veterinary expenses|||**266,825**|201,761|
||Office expenses|||**301,832**|96,910|
||Rates and insurance|||**94,440**|63,929|
||Light, heat and water|||**167,975**|113,838|
||Van costs|||**33,933**|12,785|
||Repairs and renewals|||**273,185**|51,779|
||Depreciation|||**616,907**|567,313|
|||||───────|───────|
|||||**3,348,947**|2,539,139|
|||||═══════|═══════|
|**11**|**Support costs**|||||
|||||**2024**|2023|
||**Governance costs**|||**£**|£|
||Auditors' remuneration|||**13,650**|13,500|
||Auditors' remuneration for non audit work|||**4,000**|2,650|
||Legal and professional fees|||**17,321**|14,880|
||AGM, annual report and meeting costs|||**361**|2,322|
|||||───────|───────|
|||||**35,332**|33,352|
|||||═══════|═══════|
## **THE BIRMINGHAM DOGS HOME**
## **Notes to the Financial Statements**
## **For the year ended 31 December 2024**
## **12 Net income/(expenditure)**
Net (expenditure)/ income is stated after charging/(crediting):
|Net (expenditure)/ income is stated after charging/(crediting):|||
|---|---|---|
||**2024**|2023|
||**£**|£|
|Fees payable to charity's auditors to the audit of the financial statements|**13,650**|13,500|
|Profit on disposal of fixed assets|**-**|-|
|Auditors' remuneration for non audit work|**4,000**|2,650|
|Depreciation - owned assets|**616,907**|632,128|
||═══════|═══════|
## **13 Consolidated Statement of Financial Activities 2023**
||**Unrestricted**|**Restricted**|**Total**|
|---|---|---|---|
||**funds**|**fund**|**2023**|
||**£**|**£**|**£**|
|**Income and endowments from**||||
|Donations and legacies|**4,934,961**|**47,200**|**4,982,161**|
|**Charitable activities**||||
|Re-homing dogs|**366,819**|**-**|**366,819**|
|**Other trading activities**|**103,198**|**-**|**103,198**|
|**Investment income**|**240,037**|**-**|**240,037**|
|**Other income**|**46,866**|**-**|**46,866**|
||**───────**|**───────**|───────|
|**Total incoming resources**|**5,691,881**|**47,200**|**5,739,081**|
||**═══════**|**═══════**|═══════|
|**Expenditure on**||||
|Raising funds|**999,360**|**-**|**999,360**|
|Charitable activities||||
|Re-homing dogs|**2,572,191**|**300**|**2,572,491**|
|**Other expenditure**|**-**|**-**|**-**|
||**───────**|**───────**|───────|
|**Total resources expended**|**3,571,551**|**300**|**3,571,851**|
||**═══════**|**═══════**|═══════|
|**Net (expenditure)/income before investment gains/(losses)**|**2,120,330**|**46,900**|**2,167,230**|
|Net gains/ (losses) on investment|**553,548**|**-**|**553,548**|
||**───────**|**───────**|───────|
|**Net income**|**2,673,878**|**46,900**|**2,720,778**|
|Transfers between funds|**-**|**-**|**-**|
||**───────**|**───────**|───────|
|**Net movement in funds**|**2,673,878**|**46,900**|**2,720,778**|
|**Funds brought forward at 1 January 2023**|**16,363,795**|**-**|**16,363,795**|
||**───────**|**───────**|───────|
|**Funds carried forward at 31 December 2023**|**19,037,673**|**46,900**|**19,084,573**|
||**═══════**|**═══════**|═══════|
There were no trustees' remuneration or other benefits for the year ended 31 December 2024 nor the year ended 31 December 2023.
## **Trustees' expenses**
There were no trustees' expenses paid for the year ended 31 December 2024 nor for the year ended 31 December 2023.
**14 Trustees' remuneration and benefits**
## **THE BIRMINGHAM DOGS HOME**
## **Notes to the Financial Statements**
## **For the year ended 31 December 2024**
## **15 Staff costs**
|**Staff costs**|||
|---|---|---|
||**2024**|2023|
||**£**|£|
|Wages and salaries|**1,904,879**|1,735,467|
|Social security costs|**143,964**|125,027|
|Other pension costs|**77,492**|65,139|
||───────|───────|
||**2,126,335**|1,925,633|
||═══════|═══════|
|The average monthly number of employees during the year was as follows:|||
||**2024**|2023|
||**£**|£|
|Direct charitable expenditure|**62**|60|
|Fundraising and publicity|**5**|4|
|Management and administration of charity|**5**|4|
||───────|───────|
||**72**|68|
||═══════|═══════|
|The number of employees whose employee benefits (excluding employers pension costs) exceeded £60,000 was:|||
||**2024**|2023|
||**£**|£|
|£110,000 - £120,000|**1**|1|
||═══════|═══════|
The total amount of employee benefits received by key management personnel is £157,262 (2023: £149,988). The key management personnel of the Charity comprise, the trustees, the Chief Executive Officer and the Treasurer.
## **16 Tangible fixed assets**
## **Group and Charity**
|**Group and Charity**|||||
|---|---|---|---|---|
||**Freehold**|**Fixtures &**|**Motor**||
||**property**|**equipment**|**vehicles**|**Total**|
||**£**|**£**|**£**|**£**|
|**Cost**|||||
|As at 1 January 2024|**11,883,145**|**1,667,503**|**74,156**|**13,624,804**|
|Additions|**39,992**|**30,977**|**35,427**|**106,396**|
|Disposals|**-**|**-**|**-**|**-**|
||───────|───────|───────|───────|
|**As at 31 December 2024**|**11,923,137**|**1,698,480**|**109,583**|**13,731,200**|
||═══════|═══════|═══════|═══════|
|**Depreciation**|||||
|As at 1 January 2024|**5,006,244**|**1,254,557**|**74,156**|**6,334,957**|
|Charge for the period|**471,507**|**145,380**|**-**|**616,887**|
|Elimninated on disposal|**-**|**-**|**-**|**-**|
||───────|───────|───────|───────|
|**As at 31 December 2024**|**5,477,751**|**1,399,937**|**74,156**|**6,951,844**|
||═══════|═══════|═══════|═══════|
|**Net book value**|||||
|**As at 31 December 2024**|**6,445,386**|**298,543**|**35,427**|**6,779,356**|
||═══════|═══════|═══════|═══════|
|As at 31 December 2023|6,876,901|412,946|-|7,289,847|
||═══════|═══════|═══════|═══════|
The net book value as at 31 December 2024 represents fixed assets used for direct charitable purposes .
Freehold property includes £375,257 for the costs of land, which is not depreciated.
## **THE BIRMINGHAM DOGS HOME**
## **Notes to the Financial Statements**
## **For the year ended 31 December 2024**
## **17 Fixed asset investments**
|**Group**|||
|---|---|---|
||**Listed shares**|**Totals**|
||**£**|**£**|
|Market value at 1 January|**9,139,043**|**9,139,043**|
|Additions at cost|**4,530,553**|**4,530,553**|
|Disposals at opening book value|**(3,532,066)**|**(3,532,066)**|
|Realised (losses)|**737,362**|**737,362**|
|Net unrealised investment gains|**(221,883)**|**(221,883)**|
||──────|──────|
||**10,653,009**|**10,653,009**|
||══════|**══════**|
||**2024**|2023|
|**The market value of investments as at 31 December 2024 can be analysed as:**|**£**|£|
|Investment assets in the UK|**7,536,317**|6,598,032|
|Investment assets outside the UK|**3,116,692**|2,541,011|
||──────|──────|
||**10,653,009**|9,139,043|
||═══════|═══════|
The trustees consider individual holdings at 31 December 2024 in excess of 5% of the portfolio value to be material. At 31 December 2024 there were no holdings over 5%:
||**2024**|2023|
|---|---|---|
|**The market value of investments is made up of:**|**£**|£|
|Listed investments|**8,781,423**|8,527,613|
|Cash|**1,871,586**|611,430|
||**───────**|───────|
||**10,653,009**|9,139,043|
||═══════|═══════|
|**Charity**|||
|In addition to the above managed investments, the Charity holds the following investments in subsidiary undertakings:|||
||**2024**|2023|
||**£**|£|
|Birmingham Dogs Home (Trading) Limited|1|1|
||═══════|═══════|
The above investment represents a 100% holding of the issued share capital of Birmingham Dogs Home Trading Limited, a subsidiary undertaking which was incorporated on 21 November 2018 and commenced to trade on 1 October 2019.
**18 Stocks**
|**Stocks**|||||
|---|---|---|---|---|
||**Group**|**Charity**|Group|Charity|
||**2024**|**2024**|2023|2023|
||**£**|**£**|£|£|
|Goods for resale|**48,093**|**48,093**|38,726|38,726|
||───────|───────|───────|───────|
||**48,093**|**48,093**|38,726|38,726|
||═══════|═══════|═══════|═══════|
The charity receives donations of stock during the year which cannot be valued and has not been included in the stock figure above, this donated stock is considered to be immaterial.
## **THE BIRMINGHAM DOGS HOME**
## **Notes to the Financial Statements**
## **For the year ended 31 December 2024**
## **19 Debtors**
|**Debtors**|||||
|---|---|---|---|---|
||**Group**|**Charity**|Group|Charity|
||**2024**|**2024**|2023|2023|
||**£**|**£**|£|£|
|Trade debtors|**45,381**|**45,379**|20,036|14,523|
|Prepayments and accrued income|**1,151,810**|**1,151,811**|2,461,432|2,461,432|
|Other debtors|**-**|**-**|250|250|
|Amounts owed by group undertakings|**-**||-|26,467|
|VAT recoverable|**41,214**|**41,420**|55,684|55,809|
||───────|───────|───────|───────|
||**1,238,405**|**1,238,610**|2,537,402|2,558,481|
||═══════|═══════|═══════|═══════|
|**Creditors: amounts falling due within one year**|||||
||**Group**|**Charity**|Group|Charity|
||**2024**|**2024**|2023|2023|
||**£**|**£**|£|£|
|Trade creditors|**172,960**|**171,294**|88,370|88,212|
|Social security and other taxes|**54,650**|**54,650**|47,115|47,115|
|Other creditors|**11,999**|**11,999**|52,142|52,142|
|Amounts owed to group undertakings|**-**|**39,336**|-|-|
|Accruals and deferred income|**44,401**|**40,401**|42,396|39,896|
||───────|───────|───────|───────|
||**284,010**|**317,680**|230,023|227,365|
||═══════|═══════|═══════|═══════|
## **20 Creditors: amounts falling due within one year**
- **21 Movement in funds**
## **Group**
|**Group**|||||||
|---|---|---|---|---|---|---|
||**Opening**|**Incoming**|**Outgoing**|**Investment**||**Closing**|
||**balance**|**resources**|**resources**|**gains**|**Transfers**|**balance**|
||**£**|**£**|**£**|**£**|**£**|**£**|
|**Operating Fund**|**3,747,826**|**3,341,198**|**(3,614,045)**|**386,240**|**1,192,699**|**5,053,918**|
||═══════|═══════|═══════|═══════|═══════|═══════|
|**Designated funds:**|||||||
|Property fund|**7,289,847**|**-**|**(616,887)**|-||**6,672,960**|
|Development fund|**8,000,000**|**-**|**-**|**-**|**(1,192,699)**|**6,807,301**|
||───────|───────|───────|───────|───────|───────|
||**15,289,847**|**-**|**(616,887)**|**-**|**(1,192,699)**|**13,480,261**|
||───────|───────|───────|───────|───────|───────|
|**Restricted funds**|||||||
|Vehicle expenditure|**46,900**|**22,500**|**-**|**-**|**-**|**69,400**|
|Dogs Christmas meals|**-**|**-**|**-**|**-**|**-**|**-**|
|The Enrichment Paddock|**-**|**22,500**|**-**|**-**|**-**|**22,500**|
|**Total Restricted**|───────|───────|───────|───────|───────|───────|
|**funds**|**46,900**|**45,000**|**-**|**-**|**-**|**91,900**|
||═══════|═══════|═══════|═══════|═══════|═══════|
||═══════|═══════|═══════|═══════|═══════|═══════|
|**Total Funds**|**19,084,573**|**3,386,198**|**(4,230,932)**|**386,240**|**-**|**18,626,079**|
||═══════|═══════|═══════|═══════|═══════|═══════|
**For the year ended 31 December 2024**
## **THE BIRMINGHAM DOGS HOME**
## **Notes to the Financial Statements**
## **21 Movement in funds (continued)**
|**Charity**|||||||
|---|---|---|---|---|---|---|
||**Opening**|**Incoming**|**Outgoing**|**Investment**||**Closing**|
||**balance**|**resources**|**resources**|**gains**|**Transfers**|**balance**|
||**£**|**£**|**£**|**£**|**£**|**£**|
|**Operating Fund**|**3,771,366**|**3,278,672**|**(3,608,572)**|**386,240**|**1,192,698**|**5,020,404**|
||═══════|═══════|═══════|═══════|═══════|═══════|
|**Designated funds:**|||||||
|Property fund|**7,289,847**|**-**|**(616,887)**|-|**-**|**6,672,960**|
|Development fund|**8,000,000**|**-**|**-**|**-**|**(1,192,698)**|**6,807,302**|
||───────|───────|───────|───────|───────|───────|
||**15,289,847**|**-**|**(616,887)**|**-**|**(1,192,698)**|**13,480,262**|
|**Restricted funds**|||||||
|Vehicle expenditure|**46,900**|**22,500**|**-**|**-**|**-**|**69,400**|
|Dogs Christmas meals|**-**|**-**|**-**|**-**|**-**|**-**|
|The Enrichment Paddock||**22,500**||||**22,500**|
|**Total Restricted**|───────|───────|───────|───────|───────|───────|
|**funds**|**46,900**|**45,000**|**-**|**-**|**-**|**91,900**|
||═══════|═══════|═══════|═══════|═══════|═══════|
||═══════|═══════|═══════|═══════|═══════|═══════|
|**Total Funds**|**19,108,113**|**3,323,672**|**(4,225,459)**|**386,240**|**-**|**18,592,566**|
||═══════|═══════|═══════|═══════|═══════|═══════|
The property fund is set aside to cover the cost of freehold property and fixtures and equipment used for charitable purposes. It is represented by the net book value of freehold property and fixtures and equipment already owned.
The development fund has been set aside to cover the cost of the future development plans.
The vehicle expenditure fund is income which has been received specifically for the purchase and fit out of vehicles
The Dogs Christmas meals fund is income received specifically for dogs Christmas meals.
The Enrichment Paddock for the development of the Enrichment Paddock.
## **22 Analysis of net assets between funds (Group)**
**Analysis of net assets between funds - current year**
|**Analysis of net assets between funds - current year**|||||
|---|---|---|---|---|
||**Operating Fund**|**Restricted**|**Designated**|**Total**|
||**£**|**£**|**£**|**£**|
|Tangible fixed assets|**6,779,356**|**-**||**6,779,356**|
|Fixed asset investments|**10,653,009**|**-**||**10,653,009**|
|Net current (liabilities)/ assets|**(12,286,547)**||**13,480,261**|**1,193,714**|
||────────|────────|────────|────────|
|**Balance as at 31 December 2024**|**5,145,818**|**-**|**13,480,261**|**18,626,079**|
||═══════|═══════|═══════|═══════|
|**Analysis of net assets between funds - prior year**|||||
||**Operating Fund**|**Restricted**|**Designated**|**Total**|
||**£**|**£**|**£**|**£**|
|Tangible fixed assets|-|-|7,289,847|7,289,847|
|Fixed asset investments|3,039,043|-|6,100,000|9,139,043|
|Net current (liabilities)/ assets|708,783|46,900|1,900,000|2,655,683|
||────────|────────|────────|────────|
|**Balance as at 31 December 2023**|3,747,826|46,900|15,289,847|19,084,573|
||═══════|═══════|═══════|═══════|
**Notes to the Financial Statements**
**For the year ended 31 December 2024**
## **THE BIRMINGHAM DOGS HOME**
## **23 Leasing agreements**
Minimum lease payments under non-cancellable operating leases fall due as follows;
||**Group**|**Charity**|Group|Charity|
|---|---|---|---|---|
||**2024**|**2024**|2023|2023|
||**£**|**£**|£|£|
|Within one year|**21,648**|**21,648**|2,016|2,016|
|Between one and five years|**61,090**|**61,090**|4,536|4,536|
|Greater than five years|**-**|**-**|-|-|
||───────|───────|───────|───────|
||**82,738**|**82,738**|6,552|6,552|
||═══════|═══════|═══════|═══════|
## **23 Pension costs**
The company operates a defined contribution pension scheme for its employees. The charge to the operating fund for the period was £77,492 (2023: £65,139).
## **24 Related party disclosures**
In the year income, David & Rosie Veterinary Services were paid £27,185 for R Godfrey's work who is a trustees wife. There was also a £570 invoiced to Corstorphine & Wright. M J Lampard is a trustee of Birmingham dogs home but acts as a director for the company.
Advantage has been taken of the FRS102 exemption for the disclosure of transactions with wholly owned subsidiaries.
## **25 Ultimate controlling party**
The company is under the control of its trustees.
## **26 Reconciliation of net income to net cash flow from operating activities**
|**26**|**Reconciliation of net income to net cash flow from operating activities**|||||
|---|---|---|---|---|---|
|||||**2024**|2023|
|||||**£**|£|
||**Net income for the reporting period (as per the statement of financial activities):**|||**(458,494)**|2,720,778|
||**Adjustments for:**|||||
||Depreciation charges|||**616,887**|632,128|
||Losses/(gains) on investments|||**(737,362)**|33,303|
||Interest received|||**(302,480)**|(240,037)|
||Unrealised loss/ (gain) on investments|||**221,883**|(586,851)|
||(Decrease)/ Increase in stocks|||**(9,367)**|14,133|
||Decrease/ (increase) in debtors|||**1,298,997**|(2,281,718)|
||Increase in creditors|||**53,987**|(50,664)|
|||||───────|───────|
||**Net cash provided by (used in) operating activities**|||**684,051**|241,072|
|||||**═══════**|═══════|
|**27**|**Analysis of changes in net funds**|||||
|||**At 1/1/2024**||**Cash flow**|**At 31/12/2024**|
||**Net cash**|**£**||**£**|**£**|
||Cash at bank|**309,578**|**-**|**118,352**
|**191,226**|
|||**───────**||───────|**───────**|
||**Total**|**309,578**|**-**|**118,352**
|**191,226**|
|||**═══════**||═══════|═══════|