## **DESTITUTE ANIMALS SHELTER**
## **FINANCIAL STATEMENTS**
## **31 DECEMBER 2022**
**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 - 14**|
**DESTITUTE ANIMALS SHELTER**
## **TRUSTEES’ REPORT**
## **Officers and professional advisors**
**Charity number** 222935 **Charity address** 1 Northolt Drive Bolton BL3 6NJ **Trustees** John G. Durham (Chairman) D. Michael Morgan Brian W. Southwood Alan G. Smith **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 2022.
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. John G Durham was appointed on 3 April 2023. In addition, Jennifer Moore stepped down as a trustee 31 August 2023. 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 review of the year on pages 3 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 £217,579 (2021: £8,248) were received during the year. The continued receipt of legacies is imperative to enable the Shelter to continue. During the year we made realised losses of £84,989 (2021: gains of £281,108) on investment disposals and unrealised losses of £102,416 (2021: losses £182,404) on investment revaluations. There was a net decrease in the year of £159,967 in our unrestricted funds.
## **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 £140,000. At year end free reserves stood at £79,112.
## **Achievements and performance in the year, and plans for the future**
2022 Continued to be a difficult year for all at the and much improved Shelter. However, thanks to the hard work of the staff, we maintained our usual care for the animals and service for the general public as best as we could, despite all the restrictions. Our thanks go to our dedicated staff for making this possible.
The new cat cages were put together and fitted by managers and staff and the rooms painted. They look very smart, much better than the old ones, and provide the cats with much better accommodation.
Post-Covid, some of the usual forms of fundraising were curtailed, However, the 200 Club lottery was able to continue; our special thanks go to Gloria, our lottery administrator, for maintaining this valuable source of funds which pays for our special rehoming scheme for elderly animals which would not otherwise find a new home. We recommend this lottery to any of our supporters not already members. Donations are collected by standing order and monthly cash prizes can be won.
The Shelter shop on Chorley Old Road has not really recovered from post-Covid concerns and the ill-health of Jennifer Moore, our fundraiser, who still managed some openings, however.
Since the year end, Bolton Council has found it necessary to cancel our contract to take in stray cats and dogs. This is due to other providers cancelling their arrangements with the Council. Due to our size, we are unable to take the whole contract on and so stray animals in Bolton collected by the dog warden will be taken to Manchester Dogs Home. We are still dealing with stray cats and dogs and continue to be busy with animals brought in by the public.
During the last year we have welcomed some new people to the committee who we trust can carry the Shelter forward and help improve the service we provide. In addition, we have welcomed on board 3 ambassadors who are promoting the Shelter through their many and varied contacts. This has also resulted in a new and much improved website being created with the help of the company owned by one of these ambassadors.
Due to the restrictions imposed on us by the size of our facilities, we would like to move to a new site that would enable us to provide better facilities for the animals. We are currently searching for a suitable site and appreciate that this may take some time.
The trustees extend their special thanks to our managers and staff for all their hard work during this difficult year.
**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:
**John G Durham Chairman**
**24 October 2023**
**Page 4**
## **DESTITUTE ANIMALS SHELTER INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES**
## **FOR THE YEAR ENDED 31 DECEMBER 2022**
I report to the trustees on the accounts of Destitute Animals Shelter (the Charity) for the year ended 31 December 2022.
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**
**24 October 2023**
**Page 5**
**DESTITUTE ANIMALS SHELTER STATEMENT OF FINANCIAL ACTIVITIES**
## **YEAR ENDED 31 DECEMBER 2022**
|**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**
**£**
**2022 total**
**funds**
**£**
**2021 total**
**funds**
**£**
265,579
-
265,579
45,394
10,858
-
10,858
6,684
10,531
-
10,531
11,186
22,795
-
22,795
22,027|
|---|---|
||309,763
-
309,763
85,291|
||34,789
-
34,789
31,453
247,536
-
247,536
238,530|
||282,325
-
282,325
269,983|
||27,438
-
27,438
(184,692)
(187,405)
-
(187,405)
98,704|
||(159,967)
-
(159,967)
(85,988)
1,387,392
-
1,387,392
1,473,380|
||1,227,425
-
1,227,425
1,387,392|
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.
**Page 6**
## **DESTITUTE ANIMALS SHELTER**
## **BALANCE SHEET AS AT 31 DECEMBER 2022**
|**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**
Unrestricted funds
14
**Total funds**|**2022**
**£**
115,511
1,025,147
1,140,658
50,755
55,389
106,144
(19,377)
86,767
1,227,425|**2021**
**£**
129,421
1,224,969|
|---|---|---|
|||1,354,390|
|||4,954
45,800|
|||50,754
(17,752)|
|||33,002|
|||1,387,392|
||1,227,425
1,227,425|1,387,392|
|||1,387,392|
Approved by the trustees and signed on their behalf on 24 October 2023.
**John G Durham Brian W Southwood Trustee Trustee**
**Page 7**
**DESTITUTE ANIMALS SHELTER**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **YEAR ENDED 31 DECEMBER 2022**
## **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 2022**
## **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 2022**
**2. Income from donations and legacies**
|**2. Income from donations and legacies**|||
|---|---|---|
|Fund-raising and appeals, Friends of the Shelter,
Gift Aid and other donations
Legacies and bequests
**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**
Realised (loss) /gain on investment disposals
Unrealised (loss)/gain on investment revaluations
Net (loss)/gain for the year|**2022**
**£**
48,000
217,579
265,579
**2022**
**£**
7,178
3,680
10,858|**2021**
**£**
36,966
8,428|
|||45,394|
|||**2021**
**£**
4,245
2,439|
|||6,684|
||**2022**
**£**
8,480
2,051
10,531
**2022**
**£**
(84,899)
(102,416)
(187,405)|**2021**
**£**
10,554
632|
|||11,186|
|||**2021**
**£**
281,108
(182,404)|
|||98,704|
**Page 10**
## **DESTITUTE ANIMALS SHELTER**
**NOTES TO THE FINANCIAL STATEMENTS** ( **CONTINUED** )
## **YEAR ENDED 31 DECEMBER 2022**
## **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
2022 Totals
2021 Totals|**Raising**
**funds**
**Charitable**
**activities**
**2022**
**Total**
**2021**
**Total**
**£**
**£**
**£**
**£**
-
20,705
20,705
22,260
-
3,434
3,434
2,205
12,365
159,446
171,811
161,668
-
2,718
2,718
2,204
7,548
859
8,407
4,855
574
10,903
11,477
11,825
11,543
-
11,543
11,894
981
-
981
749
-
26,119
26,119
21,412
-
6,087
6,087
10,451
178
1,601
1,779
1,788
-
3,424
3,424
2,136
1,600
12,240
13,840
16,536|
|---|---|
||34,789
247,536
282,325
269,983|
||31,453
238,530
269,983|
Included above are governance costs of £3,121 (2021: £2,774), being independent examiner’s fees of £2,140 and legal fees of £981.
|**7. Staff costs**
Salaries, wages and similar costs
Employers’ national insurance
Employer’s pension contributions|**2022**
**£**
161,872
8,083
1,856
171,811|**2021**
**£**
152,012
7,916
1,740|
|---|---|---|
|||161,668|
The average number of employees during the year, including part-time ones, was 9 (2021: 9).
No employees earned more than £60,000 in either year. The remuneration of key management personnel was approximately £85,000, including employer pension contributions and net national insurance costs.
One trustee in the year, J Moore, was also a paid employee. During the year she received gross salary of £11,797 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 2022**
## **8. Tangible fixed assets**
|**Cost**
At 1 January 2022
Additions
Disposals
At 31 December 2022
**Depreciation**
At 1 January 2022
Charge for the year
Written off on disposal
At 31 December 2022
**Net Book Value**
At 31 December 2022
At 31 December 2021
**9. Investments**
Valuation at 1 January 2022
Additions at cost
Disposals at cost
Unrealised (losses) on revaluation
Movement in cash on deposit
**Valuation at 31 December 2022**|**Fixtures,**
**fittings and**
**equipment**
**Motor**
**vehicles**
**£**
**£**
46,704
14,392
-
-
-
-|**Freehold**
**land &**
**buildings**
**£**
382,763
-
-|**Total**
**£**
443,859
-
-
443,859
314,508
13,840
-
328,348
115,511
129,351
**2021**
**£**
1,242,647
1,163,791
(321,073)
(182,404)
(49,133)|
|---|---|---|---|
||46,704
14,392|382,763||
||35,546
12,240
1,680
-
-
-|266,722
12,160
-||
||37,226
12,240|278,882||
||9,478
2,152|103,881||
||11,158
2,152|116,041||
|||**2022**
**£**
1,224,969
623,572
(730,030)
(102,416)
9,052
1,025,147||
||||1,224,969|
At year end there were 5 single investments represents more than 5% of the total portfolio value:
- iShares MSCI USA (8.50%)
- Brown Advisory US Sustainable Growth Fund Sterling Class B (6.37%)
- Fidelity Global Dividend Fund W Q-income Sterling (6.05%)
- DWS Invest ESG Equity Income (5.98%)
- iShares Emerging Markets SRI MSCI (5.83%)
The cost of investments at 31 December 2022 was £1,088,256 (2021: £1,185,662), consisting of listed investments of £1,074,159 and a cash deposit of £14,097.
**Page 12**
## **DESTITUTE ANIMALS SHELTER**
## **NOTES TO THE FINANCIAL STATEMENTS**
## ( **CONTINUED** )
## **YEAR ENDED 31 DECEMBER 2022**
|**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|**2022**
**£**
252
48,158
2,345
50,755
**2022**
**£**
5,171
14,206
19,377
**2022**
**£**
1,083,133
19,377|**2021**
**£**
489
1,697
2,768|
|---|---|---|
|||4,954|
|||**2021**
**£**
2,016
15,736|
|||17,752|
|||**2021**
**£**
1,274,026|
|||17,752|
## **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 2022**
## **14. Movements in funds**
|**Current year**
**Unrestricted funds**
Designated funds
General funds
**Total funds**
**Previous year**
**Unrestricted funds**
Designated funds
General funds
**Total funds**|**Balance at**
**01.01.22**
**Income &**
**net gains**
**Expenditure**
**& net losses**
**Fund**
**transfers**
**Balance at**
**31.12.22**
4,337
-
(5,682)
9,000
7,655
1,383,055
309,763
(464,048)
(9,000)
1,219,770|
|---|---|
||1,387,392
309,763
(469,730)
-
1,227,425|
||**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|
The trustees have designated unrestricted funds of £7,655 (2021: £4,337) 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 (2021: none).
**Page 14**