2021-12-31-accounts

DESTITUTE ANIMALS SHELTER

FINANCIAL STATEMENTS

31 DECEMBER 2021

Registered Charity No: 222935

BARLOW ANDREWS LLP CHARTERED ACCOUNTANTS

DESTITUTE ANIMALS SHELTER

CONTENTS

	Page
Trustees’ Report	1 - 4
Independent Examiner’s Report	5
Statement of Financial Activities	6
Balance Sheet	7
Notes to the Accounts	8 - 15

DESTITUTE ANIMALS SHELTER

TRUSTEES’ REPORT

Officers and professional advisors

Charity number	222935
Charity address	1 Northolt Drive
	Bolton
	BL3 6NJ
Trustees	D. Michael Morgan (Chairman)
	Brian W. Southwood
	Alan G. Smith
	Jennifer Moore
Independent examiner	David A Kay, FCA
	Barlow Andrews LLP
	Chartered Accountants
	Carlyle House
	78 Chorley New Road
	Bolton
Bankers	The Royal Bank of Scotland plc
	Bolton Central Branch
	46-48 Deansgate
	Bolton

Page 1

DESTITUTE ANIMALS SHELTER

TRUSTEES’ REPORT (Continued)

The trustees present their report and the financial statements for the year ended 31 December 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association , 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 and Republic of Ireland (FRS 102) (effective 1 January 2019)".

Structure, governance and management

Legal constitution and charitable status

The Charity, registration number 222935, operates under a Trust Deed dated 1 July 1924 and a subsequent Declaration of Trust dated 13 September 1933.

Trustees

The trustees are as listed on page 1. The trustees are members of the Management Committee which meets regularly and oversees the running of the Charity.

New trustees are appointed by the existing Board. On appointment of a new trustee, the existing trustees explain to the new trustee the decision-making process of the trust and provide an overview of the administrative procedures employed by the charity.

Objectives and activities

The object of the Charity is to maintain a shelter for the care, treatment and re-homing, where possible, of unwanted, homeless, ill-treated, stray, injured or sick dogs and cats using funds raised by, donated to, bequeathed to or otherwise received by the Shelter.

The Charity’s activities include the provision of short to medium term accommodation and, where necessary, veterinary treatment for dogs and cats which it receives, whilst actively seeking to reunite them with their owners or to place them with new owners.

Public benefit

Each year the trustees review the objectives and activities of the Charity to ensure that they continue to reflect its aims and to provide public benefit. Information provided in the Chairman’s review of the year on pages 3 and 4 clearly indicates that they do.

Financial review

The Charity’s Statement of Financial Activities for the year is presented on page 6.

The trustees report that legacies amounting to £8,248 (2020: £88,104) were received during the year. The Trustees consider the reduction is largely due to various legal processes being delayed due to the Coronavirus lockdown, as they are aware of a number of bequests that have yet to be administered. The continued receipt of legacies is imperative to enable the Shelter to continue. During the year we made realised gains of £281,108 (2020: £38,264 ) on investment disposals and unrealised losses of £182,404 (2020: gains £49,177 ) on investment revaluations. There was a net decrease in the year of £85,988 in our unrestricted funds, due primarily to the legacy receipts, without which our day-to-day activities would show us operating at a deficit.

Risk management

The trustees continue to review any major risks arising from or impacting on the activities of the Shelter. We consider that the systems which we have in place to mitigate such risks already identified are adequate in normal circumstances.

Page 2

DESTITUTE ANIMALS SHELTER TRUSTEES’ REPORT (Continued)

Investments policy

Investments are held primarily for their annual income return and long-term growth potential. The portfolio is weighted towards low risk and ethical stocks.

Reserves policy

The Shelter aims to maintain sufficient free reserves to meet its day to day running costs, bearing in mind that the unpredictable nature of legacies and donations means that income can vary significantly year on year. Unprecedented events such as the coronavirus pandemic also underline the need to maintain a healthy reserves level. Free reserves are our unrestricted funds which are not designated by the trustees for specific projects or purposes, or which are not represented by either tangible fixed assets or fixed asset investments. The trustees’ target is a minimum of six months’ average expenditure for free reserves, currently about £145,000. At year end free reserves stood at £88,378.

Achievements, performance and plans for the future

Chairman’s review of the year

The coronavirus pandemic continued to severely impact on our operating activities during the year. The Shelter continued to be closed to access by the general public. However, we still continued to take in strays and rehomers when they became available, which were rehomed or adopted where possible. We continued to organise our staff so that animals in our care were properly looked after whilst complying with coronavirus regulations. Should any member of staff be notified that they had been in contact with a covid suspect, or catch covid, they could isolate at home without loss of pay.

Throughout the pandemic, our staff have continued to work and nobody has been furloughed. The animals have continued to receive the same high level of care that they have always received and we continue to be available to take in strays or unwanted animals, and look after them until they can be rehomed or reunited with their owners. The prudent approach of the Trustees in building a strong financial platform for the charity to operate from has again been rewarded and we are well able to withstand the financial impacts of the pandemic.

Our charity shop has had to remain closed to comply with Government regulations, resulting in a continued loss of income from this source. We have found it difficult to reopen due to its size and layout and comply with social distancing rules. Our shop manager has however been able to make some sales by arrangement and make enough money to cover the shop’s current overheads.

The old cat cages have now been replaced with new ones; these are much better than the old ones. They are bigger, easier to keep clean and better all round for the animals.

We have some plans to continue the refurbishment of the Shelter after discussion with our advisers. The trustees are aware that the current location of the shelter is not ideal. Due to the limited size of our site, we are not able to provide the level of care of our animals we would like to. They are always on the look-out for a suitable plot of land we could acquire to redevelop to give our animals a better level of care.

Page 3

DESTITUTE ANIMALS SHELTER TRUSTEES’ REPORT (Continued)

Statement of trustees’ responsibilities

The Charities Act 2011 and the Statement of Recommended Practice (SORP) require the trustees of the charity to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity as at the end of the financial year and of the surplus or deficit of the Charity for that period. In preparing those financial statements the trustees are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable accounting standards and the statements of recommended practice of the Charities Commission have been followed;

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

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 Charities Act 2011. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud or other irregularities.

Independent examiner

A resolution for the reappointment of David A Kay FCA of Barlow Andrews LLP as Independent Examiner is to be proposed.

Approval of Trustees’ Report

This report has been approved by the Board and signed on its behalf:

D. Michael Morgan Chairman

25 July 2022

Page 4

DESTITUTE ANIMALS SHELTER INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2021

I report to the trustees on the accounts of Destitute Animals Shelter (the Charity) for the year ended 31 December 2021.

This report is made solely to the charity’s trustees, as a body, in accordance with section 154 of the Charities Act 2011. My independent examiner’s work has been undertaken so that I might state to the charity’s trustees those matters I am required to state to them in an independent examiner’s report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity, the charity’s members as a body and the charity’s trustees as a body for my independent examiner’s work, for this report, or for the opinions I have formed.

Responsibilities and basis of report

As the charity trustees of the Trust 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. Independent examiner's statement.

Independent examiner’s statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

1. accounting 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.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

David A Kay FCA Barlow Andrews LLP Chartered Accountants Carlyle House, 78 Chorley New Road, Bolton

25 July 2022

Page 5

DESTITUTE ANIMALS SHELTER

STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 DECEMBER 2021

Notes Income from: Donations and legacies 2 Charitable activities 3 Other trading activities 4 Investments Total income Expenditure on: Raising funds 6 Charitable activities 6 Total expenditure Net expenditure for the year before gains on investments Gains on investment assets 5 Net movement in funds Funds brought forward Funds carried forward 13	Unrestricted funds £ Restricted funds £ 2021 total funds £ 2020 total funds £ 45,394 - 45,394 199,919 6,684 - 6,684 7,336 11,186 - 11,186 9,373 22,027 - 22,027 19,240
	85,291 - 85,291 235,868
	31,453 - 31,453 30,046 238,530 - 238,530 249,889
	269,983 - 269,983 279,935
	(184,692) - (184,692) (44,067) 98,704 - 98,704 87,441
	(85,988) - (85,988) 44,374 1,473,380 - 1,473,380 1,430,006
	1,387,392 - 1,387,392 1,473,380

The Statement of Financial Activities includes all gains and losses recognised in the year.

The 2021 total funds were all in respect of unrestricted funds and included no restricted fund income or expenditure.

Comparative figures for 2020 are provided in note 16 to the accounts.

Page 6

DESTITUTE ANIMALS SHELTER

BALANCE SHEET AS AT 31 DECEMBER 2021

Notes Fixed assets Tangible assets 8 Investments 9 Current assets Debtors 10 Cash at bank and in hand Creditors: Amounts falling due within one year 11 Net current assets Net assets Funds Restricted funds Unrestricted funds 14 14 Total funds	2021 £ 129,241 1,224,969 1,354,390 4,954 45,800 50,754 (17,752) 33,002 1,387,392 - 1,387,392 1387,392	2020 £ 137,893 1,242,647
		1,380,540
		9,489 97,430
		106,919 (14,079)
		92,840
		1,473,380
		- 1,473,380
		1,473,380

Approved by the trustees and signed on their behalf on 25 July 2022

Brian W Southwood Alan G Smith Trustee Trustee

Page 7

DESTITUTE ANIMALS SHELTER

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

1. Accounting policies

Destitute Animals Shelter is an unincorporated registered charity, governed by a trust deed, as detailed on page 2. Its registered address and principal place of business is 1 Northolt Drive, Bolton, BL3 6NJ.

1.1 Basis of accounting

The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019.

1.2 Preparation of the accounts on a going concern basis

The trustees are satisfied that the charity has adequate working capital and funding in place to ensure that it is a going concern, and the financial statements have been prepared on that basis.

1.3 Income

Income is recognised on a receivable basis and is reported gross of related expenditure. Items of income are recognised when each of the following criteria are in place: the charity has entitlement to the funds, any performance conditions have been met or are fully within the control of the charity, there is sufficient certainty that receipt of the income is considered probable, and the amount can be measured reliably. The value of services provided by volunteers has not been provided in the financial statements.

1.4 Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to that category. Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Costs of raising funds comprise the costs associated with shop trading and similar activities and with organising appeals and collections etc. They include the associated support costs of those activities.

Charitable expenditure comprises those costs directly incurred by the charity in the delivery to beneficiaries of its core activities. The support costs associated with delivery of these activities is also included.

1.5 Fund accounting

General unrestricted funds are those which are available for use or retention at the discretion of the trustees in furtherance of the objects of the charity. Designated funds are unrestricted funds which the trustees have earmarked for specific projects or purposes out of general funds and can be varied at the discretion of the trustees.

Restricted funds are funds subject to specific restrictive conditions imposed by funding bodies, donors etc. Expenditure which meets these criteria is allocated against the fund, together with a fair allocation of management and support costs.

Page 8

DESTITUTE ANIMALS SHELTER

NOTES TO THE FINANCIAL STATEMENTS

( CONTINUED )

YEAR ENDED 31 DECEMBER 2021

1.6 Tangible fixed assets

Depreciation is provided on cost in equal annual instalments over the estimated useful lives of the assets. The rates of depreciation are as follows:

Buildings - Chorley Old Road - 2% p.a. on cost Buildings and fixtures - Northolt Drive - 4% p.a. on cost Motor van - 20% p.a. on cost Office equipment - 15% p.a. on cost

1.7 Fixed asset investments

Fixed asset investments are carried at market value, being quoted market price for listed investments. Both realised and unrealised gains and losses are included in the Statement of Financial Activities.

1.8 Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid bank deposits.

1.9 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include trade debtors and cash and bank balances, are measured at transaction price. In the case of trade and other debtors this is normally the settlement value due.

Other financial assets

Financial assets classified as other financial assets, such as fixed asset investments, are stated at fair value, gains or losses arising on re-measurement being recognised in the statement of financial activities.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

Basic financial liabilities, which include trade creditors, are recognised at transaction price. In the case of trade creditors this is normally their settlement amount after allowing for any trade discounts due.

Page 9

DESTITUTE ANIMALS SHELTER

NOTES TO THE FINANCIAL STATEMENTS

( CONTINUED )

YEAR ENDED 31 DECEMBER 2021

2. Income from donations and legacies

Fund-raising and appeals, Friends of the Shelter, Gift Aid and other donations Legacies and bequests	2021 £ 36,966 8,428 45,394	2020 £ 111,815 88,104
		199,919

Donations income includes £0 (2019: £275) restricted income for the Foster Dogs Scheme.

3. Income from charitable activities

Animals adopted, homed or claimed BMBC – strays and carcasses 4. Income from trading activities 200 Club net income after prizes etc. Net income from charity shop, pet-tac, ID chips etc. 5. Gains/(losses) on investment assets Profit on investment disposals Movements on investment revaluations Net gain for the year	2021 £ 4,245 2,439 6,684 2021 £ 10,554 632 11,186 2021 £ 281,108 (182,404) 98,704	2020 £ 5,073 2,263
		7,336
		2020 £ 8,487 886
		9,373
		2020 £ 38,264 49,177
		87,441

Page 10

DESTITUTE ANIMALS SHELTER

NOTES TO THE FINANCIAL STATEMENTS ( CONTINUED )

YEAR ENDED 31 DECEMBER 2021

6. Expenditure

Vets fees, drugs, treatment etc. Animal food, cleaning, carcasses Salaries and wages Motor and travel Advertising, stationery, postage Accountancy and payroll fees Investment management Legal and other professional fees Rates, water, gas and electric Repairs, maintenance, security Telephone Sundry expenditure Depreciation charges	Raising funds Charitable activities 2021 Total 2020 Total £ £ £ £ - 22,260 22,260 24,185 - 2,205 2,205 2,826 11,628 150,040 161,668 170,560 - 2,204 2,204 4,256 4,366 489 4,855 4,845 591 11,234 11,825 9,700 11,894 - 11,894 11,055 548 201 749 2,198 103 21,309 21,412 22,720 200 10,251 10,451 7,036 179 1,609 1,788 1,778 - 2,136 2,136 2,128 1,944 14,592 16,536 16,648
	31,453 238,530 269,983 279,935

Included above are governance costs of £2,774 (2020: £3,902), being independent examiner’s fees of £2,025 and legal fees of £749.

7. Staff costs Salaries, wages and similar costs Employers’ national insurance Employer’s pension contributions	2021 £ 152,012 7,916 1,740 161,668	2020 £ 158,713 10,385 1,462
		170,560

The average number of employees during the year, including part-time ones, was 9 (2020: 9).

No employees earned more than £60,000 in either year. The remuneration of key management personnel was approximately £74,000, including employer pension contributions and national insurance costs.

One trustee, J Moore, is also a paid employee. During the year she received gross salary of £11,160 in respect of her employment. She received no remuneration in respect of her duties as a trustee, nor did any other trustee receive any remuneration during the year.

No trustee expenses were reimbursed in either year.

Page 11

DESTITUTE ANIMALS SHELTER

NOTES TO THE FINANCIAL STATEMENTS ( CONTINUED )

YEAR ENDED 31 DECEMBER 2021

8. Tangible fixed assets

Cost At 1 January 2021 Additions Disposals At 31 December 2021 Depreciation At 1 January 2021 Charge for the year Written off on disposal At 31 December 2021 Net Book Value At 31 December 2021 At 31 December 2020 9. Investments Valuation at 1 January 2021 Additions at cost Disposals at cost Sundry broker adjustments Unrealised gains/(losses) on revaluation Movement in cash on deposit Valuation at 31 December 2021	Fixtures, fittings and equipment Motor vehicles £ £ 38,710 14,392 7,994 - - -	Freehold land & buildings £ 382,763 - -	Total £ 435,865 7,994 - 443,859 297,972 16,536 - 314,508 129,351 137,893 2020 £ 1,097,776 429,854 (321,073) (1,167) 49,177 (11,920)
	46,704 14,392	382,763
	33,546 9,360 2,000 2,880 - -	255,066 11,656 -
	35,546 12,240	266,722
	11,158 2,152	116,041
	5,164 5,032	127,697
		2021 £ 1,242,647 1,163,791 (949,932) - (182,404) (49,133) 1,224,969
			1,242,647

No single investment represents more than 5% of the total portfolio value.

The cost of investments at 31 December 2021 was £1,185,662 (2020: £966,758 ), consisting of listed investments of £1,180,617 and cash deposits £5,045.

Page 12

DESTITUTE ANIMALS SHELTER

NOTES TO THE FINANCIAL STATEMENTS

( CONTINUED )

YEAR ENDED 31 DECEMBER 2021

10. Debtors Trade receivables Prepayments and accrued income Value added tax recoverable 11. Creditors - amounts falling due within one year Trade payables Sundry creditors and accruals 12. Financial instruments Carrying amount of financial assets Trade receivables, VAT recoverable, cash, bank and investments Carrying amount of financial assets Trade payables, sundry creditors and accruals	2021 £ 489 1,697 2,768 4,954 2021 £ 2,016 15,736 17,752 2021 £ 1,274,026 17,752	2020 £ 1,164 5,526 2,799
		9,489
		2020 £ 1,628 12,451
		14,079
		2020 £ 1,344,040
		14,079

13. Analysis of net assets between funds

All assets and liabilities held at year end relate to unrestricted funds.

Page 13

DESTITUTE ANIMALS SHELTER

NOTES TO THE FINANCIAL STATEMENTS

( CONTINUED )

YEAR ENDED 31 DECEMBER 2021

14. Movements in funds

Current year Restricted funds Foster Dog Scheme Unrestricted funds Designated funds General funds Total funds Previous year Restricted funds Foster Dog Scheme Unrestricted funds Designated funds General funds Total funds	Balance at 01.01.21 Income & net gains Expenditure & net losses Fund transfers Balance at 31.12.21 - - - - -
	- - - - - 4,462 - (9,125) 9,000 4,337 1,468,918 183,995 (260,858) (9,000) 1,383,055
	1,473,380 183,995 (269,983) - 1,387,392
	1,473,380 183,995 (269,983) - 1,387,392
	Balance at 01.01.20 Income & net gains Expenditure & net losses Fund transfers Balance at 31.12.20 - 60 (60) - -
	- - - - - 3,685 60 (9,283) 10,000 4,462 1,426,321 323,189 (270,592) (10,000) 1,468,918
	1,430,006 323,249 (279,875) - 1,473,380
	1,430,006 323,309 (279,935) - 1,473,380

The trustees have designated unrestricted funds of £4,337 (2020: £4,462) to the foster dog scheme at the balance sheet date, which is specifically for the welfare and treatment of fostered dogs.

15. Related party transactions

Other than the trustee remuneration stated in note 7, there were no other related party transactions in the year (2020: none).

Page 14

DESTITUTE ANIMALS SHELTER

NOTES TO THE FINANCIAL STATEMENTS

( CONTINUED )

YEAR ENDED 31 DECEMBER 2021

16. Statement of Financial Activities for 2020 for comparison

Income from: Donations and legacies Charitable activities Other trading activities Investments Total income Expenditure on: Raising funds Charitable activities Total expenditure Net income for the year before gains and losses on investments Gains/(losses) on investment assets Net movement in funds Funds brought forward Funds carried forward	Unrestricted funds £ Restricted funds £ Total funds £ 199,859 60 199,919 7,336 - 7,336 9,373 - 9,373 19,240 - 19,240
	235,808 60 235,868
	30,046 - 30,046 249,829 60 249,889
	279,875 60 279,935
	(44,067) - (44,067) 87,441 - 87,441
	44,374 - 44,374 1,430,006 - 1,430,006
	1,473,380 - 1,473,380

Page 15