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2023-12-31-accounts

RSPCA BURY & OLDHAM BRANCH

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

Charity registration number 226624

RSPCA BURY & OLDHAM BRANCH

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr D Haigh Mr C Peart Mrs D Peart Mr T Jones Ms S M Paterson Mrs K Jakeman Charity number 226624 Independent examiner Champion TLL Limited 7-9 Station Road Hesketh Bank Preston Lancashire PR4 6SN

RSPCA BURY & OLDHAM BRANCH

CONTENTS

Page
Trustees' report 1 - 7
Independent examiner's report 8
Statement of financial activities 9
Balance sheet 10
Statement of cash flows 11
Notes to the financial statements 12 - 23

RSPCA BURY & OLDHAM BRANCH

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2023

The trustees present their annual report and financial statements for the year ended 31 December 2023.

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 [governing document], the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Objectives and activities

The Charity's objectives are to promote the work and objectives of the RSPCA in their Branch area. Namely to use all lawful means to prevent cruelty, promote kindness to and alleviate suffering of animals.

The Trustees have reviewed the outcomes and achievements of our objectives and activities for the year to ensure that they remain focussed on our charitable aims and continue to deliver benefits to the public. We have complied with the duty under the Charities Act 2006 to have due regard to public benefit guidance published by the Commission.

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake.

Public benefit

The Trustees have reviewed our objectives and activities for the year to ensure that they remain focused on our charitable aims and continue to deliver benefits to the public. We consider we have complied with the duty under the Charities Act 2011 to have due regard to the guidance on public benefit published by the Charity Commission and that the Charity's activities as described below have met the Charity Commission's requirements.

Achievements and performance Charitable activities

Animal welfare

The Animal Centre at Strinesdale, Holgate Street, Oldham OL4 2JW had a difficult start to the year as our poor financial position meant we had no alternative but to close the Animal Centre to animal welfare activities in April 2023. During this time welfare activities were stood down as we had no staff to support this. As a result of this standing down we were able to shore up our financial position. The cessation of welfare activities caused concern as this meant we were not able to meet our stated objective of delivering this support, the reason we are here. As soon as the closure had been concluded the Trustees worked tirelessly to find an alternative way to restart our welfare activities in the earliest possible time frame. The Trustees considered two main options. The first was a potential merger with another RSPCA branch, one with more stable financial resources and then latterly a partnership with another charity that has objectives that would align with our own. Once we had secured an agreement in principle for a partnership we restarted our animal welfare activities in December 2023, albeit on a limited basis. Initially this focused on neutering, microchipping and general welfare services. The finalisation of our agreement with Cats Protection in 2024 means we will be able to increase the number of and expand the reach of these activities.

Retail Operations

The work undertaken by the new appointee Carl Roberts has continued to implement the retail strategy and this has seen turnover improve and targets being met in line with Trustee expectations. The Trustees are extremely grateful to all our retail staff for their support.

Our retail strategy also saw us open two new shops in the period, Huddersfield Road and Moorside, further increasing our local retail presence as well as providing further opportunities for donations. A laser focus on profitability continues and supports our strategy of not relying in any way on legacy or other fundraising activity to support our Animal Centre operations in the longer term. At the time of writing this report all shops are broadly operating on a profitable basis albeit there are a couple that are not as profitable but make up for this with their donation levels.

RSPCA BURY & OLDHAM BRANCH

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

The local high street continues, as we always report, to be challenging as was the case pre-pandemic, but with a firm control on cost, fast decision making and seizing the chance to go down alternative routes when presented we managed to improve our financial position over the course of the year.

Volunteers

We are also extremely indebted, as always, to the volunteers who support the Branch. Sadly, with the closure of the Animal Centre, we had to cease to use those volunteers (although we have remained in touch and will seek to use them again via our new Cats Protection partnership). The support of our volunteers in our retail network has been instrumental in enabling us to keep our staffing costs under control and we will continue this push going forward. Without these volunteers the Branch would be unable to run smoothly and to undertake the amount of work currently achieved. This year the Charity had many volunteers each donating their personal time and commitment. In total we had 17,213 hours of support provided by volunteers.

Key Performance Indicators

The Trustees monitor a range of key performance indicators at the monthly Trustees meetings. This helps to assess the financial performance of the Branch and effectiveness of our activities against targets set for the year. The indicators monitored include the following:

Key Performance Indicator 2022 2023
Retail Income £665,956 £741,287
Gift Aid recovered £28,266 £62,214
Retail Volunteer Hours 17172 17213
Animals Rehomed 187 29
Animals Neutered 275 29
Animals Microchipped 250 28
Animal Welfare Assistance 38 2
Animal Centre Volunteer Hours 3324 688
Absence levels 2.05% 0%

Financial review

Financial position

The statements reflect a surplus in funds of £125 and a fund balance of £1,583,187 as at 31st December 2023.

Principal funding sources

The principal funding source available to the charity during the year has continued to be our charity shop network.

Investment policy and objectives

At 31st December 2022, the branch investment policy was:

Our current resources are invested in a NatWest Reserve Account, a NatWest Business Account with a small amount retained in a Strinesdale Fund account.

RSPCA BURY & OLDHAM BRANCH

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Reserves policy

The branch policy is to hold reserves in order that levels of service provided for animal welfare may be maintained should there be a reduction in income. The trustees propose that this remains at an amount that is equivalent to 3 month's operational expenditure. Due to the resumption of welfare activities in December 2023, a designated reserve has been established to ensure that any branch donations are utilised in directly subsidising clinical activities.

Reserves in this context mean funds that are freely available for the Branch's general purpose after all commitments have been met. Tangible fixed assets such as property, vehicles and equipment are therefore excluded from the calculation of branch reserves.

The closure of the Animal Centre has meant our reserves have begun to improve in the latter part of 2023. This allowed us to invest in some building infrastructure projects notably heating and air conditioning.

The Branch has unrestricted reserves of £119,945 after designating amounts of £15,000 to directly subsidise our clinical activities and those already spent on fixed assets, for the year ending 31st December 2023. Such reserves represent around 1.5 months expenditure based on 2023 expenditure levels.

Financial Stability

The ongoing cost of maintaining our Animal Centre continues to be funded from our retail income, our own reserves as needed and fundraising, when possible. The Trustees and senior management team will ensure that the Branch continues in 2024 to have strong financial management to meet this additional financial challenge and to ensure that the Branch remains financially viable without reliance on legacy income by the following means:

It is the opinion of the Trustees that once our 3-year Cat’s Protection partnership takes place and comes on stream in April 2024, it will considerably reduce our financial burden of running the Animal Centre and should secure our position in both the medium and longer term.

RSPCA BURY & OLDHAM BRANCH

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Plans for future periods

As already stated, our principal ambition for 2024 is the partnership and collaboration with Cat’s Protection which will see us rent out a considerable portion of our Animal Centre (notably the cattery and related parts of the premises). This will pay for approximately 50% of our animal centre running costs as well as enable us to retain a significant enough portion of our estate to run our own animal welfare activities. This will give us some capacity to support the RSPCA Inspectorate albeit on a much-reduced basis than before. The Cats Protection partnership may also give us a steady source of paid veterinary work as they have stated they may use our services given their proximity and high standards. It should be noted that this is not contractually mandated.

Our objectives at a high level for 2024 are.

Income Generation and Fundraising

The Branch strategy is to be financially viable without reliance on unpredictable legacy income. Income targets for 2023 increased, but sadly so did operating costs, minimum wage rises and utility costs being of particular influence. This is forecasted to continue in 2024.

We continue to be grateful for the flexibility of our staff and volunteers and recognise that against this backdrop there were some excellent performances from some individual shops.

We will continue to examine profitability on a shop-by-shop basis, and will take decisions to close, relocate or commence new outlets as appropriate. We will also use any retail profit over and above target to upgrade and rebrand the shops the Branch decides to retain. The Retail Operations Manager will continue to closely manage performance and ensure all shop managers have the training and opportunity to fulfil their potential.

A key priority continues to be increasing the numbers of volunteers in the shops to support paid colleagues and to recruit additional Trustees especially with experience and skills in finance and commerce, working with volunteers, PR and marketing.

Structure, governance and management

The charity is controlled by its governing document, a deed of trust, and constitutes and unincorporated charity.

The trustees who served during the year and up to the date of signature of the financial statements were: Mr D Haigh Mr C Peart Mrs D Peart Mr T Jones Ms S M Paterson Mrs K Jakeman

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

RSPCA BURY & OLDHAM BRANCH

Recruitment and appointment of new Trustees

The Board of Trustees reviews the skills and expertise on the Board at annual strategy events. Any gaps identified may be specifically recruited for by placing advertisements in the Branch charity shops, the local press, RSPCA websites or by word of mouth. Applicants are interviewed by at least 2 members of the Board of Trustees and if successful are invited to attend up to 3 Board meetings as observers after which time they may be invited to fill a casual vacancy, be co-opted or be invited to stand for election at the next AGM.

Trustee appointments are made in accordance with the 2012 Branch rules. A minimum of 5 and maximum of 14 Trustees are elected annually by members of the Branch at the AGM. All elected Trustees must be qualifying Branch members and serve for one year with no limits on the number of consecutive years' service. Candidates for election must be nominated in writing by at least two eligible Branch members. Nominations must be delivered to the Branch Secretary at least 10 days before the date fixed for the AGM and must be accompanied by the candidate's written consent to stand for election. At the AGM all candidates are listed on the voting paper and every eligible Branch member may cast a vote for each vacancy. To be elected candidates must receive the votes of at least 50 per cent of the eligible members present. If the votes are equal the available places are to be filled by resubmitting the names of tied candidates at the meeting as often as is required to achieve a clear result.

In addition, the Branch may co-opt up to 3 Trustees who may, but need not be, Branch members (but who must not be members of another Branch or have received less than 50 per cent of the votes at the last election. Co-opted members serve until the next election.

If a casual vacancy arises during the year this may be filled by an eligible Branch member (provided they did not receive less than 50 per cent of the votes at the last election.)

Induction and training of new trustees

New Trustees are required to attend an induction session with the Branch Support Specialist to explain the role and responsibilities of a Trustee, the structure of the RSPCA and the Branch and the work undertaken by the Branch. New Trustees are given an induction pack including the Branch rules and other relevant documents and are invited to spend a day with the Operations Director at the animal centre to orientate them into the workings of the Branch. They are also invited to visit the Branch's charity shops.

Attendance at up to 3 meetings before candidates are formally appointed as Trustees is intended to ensure potential Trustees are sufficiently informed to understand the role of a Trustee and the work of the Branch to decide whether to proceed with their candidature and for the Branch to decide whether candidates have the required skills and experience.

Trustees are encouraged to attend relevant training sessions.

The Trustees were incorporated in January 2018 (allowing a form of legal status affiliated to the Charity, allowing legal documents, and the like, to be signed in the name of the incorporated Trustees).

RSPCA BURY & OLDHAM BRANCH

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

The Society for the Prevention of Cruelty to Animals was founded on 16th June 1824 and granted the "Royal" prefix by Queen Victoria in 1840. The current constitution of the RSPCA was created with the adoption of the Royal Society for the Prevention of Cruelty to Animals Act 1932, the work of the Society is governed by the RSPCA Act and by the rules of the Society. Membership of the Society is by subscription and may be on a life, annual or junior basis. The society is managed by an elected Council which, subject to the rules, control the affairs, funds, property and proceedings of the Society. They are assisted in the administration of the Society by a central organisation, headquarters and branches.

The Branch is governed by a Board who are Trustees of the Branch. They have individual and collective responsibility for the management of the Branch and its funds. Subject to the overall supervision of the Society, the Committee controls and monitors all the fundraising and animal welfare initiatives of the Branch, including the work of the Bury, Oldham & District RSPCA Animal Centre.

The Trustees are supported in running the Branch by the Branch Partnership Manager , who is employed by the Society, the paid employees of the Branch under the leadership of the Retail Operations and Animal Centre Managers and a team of volunteers to whom the Branch are extremely grateful for their commitment and dedication.

Trustees are required to disclose all relevant interests and register them in the minutes of the relevant meeting and withdraw from decisions where a conflict of interest arises.

All employees have the same contract of employment and terms and conditions with the exception of increased notice periods for senior employees, and for some an allowance to cover associated travel costs.

Pension payments by both employee and employer are determined by statute and are paid accordingly.

The arrangements for setting the pay and remuneration of the Charity's key management personnel are as follows:

The Operation's Director's remuneration and terms and conditions of employment are set by the Board of Trustees Remuneration is performance related and reviewed annually taking into account regular performance reviews and an annual appraisal conducted by one of the Trustees. Remuneration is also benchmarked against other similar RSPCA posts and similar posts in the wider charity sector. An annual performance related non-consolidated bonus may also be awarded at the discretion of the Board.

All remuneration pay scales for the other key management personnel are set by the Board of Trustees and are benchmarked against other similar RSPCA posts and similar posts in the wider charity sector.

The Animal Centre Manager and Retail Operation Managers' remuneration is reviewed annually by the Trustees. Salaries are set within the scales agreed by the Board and the budget set annually by the Board. Annual nonconsolidated performance related bonuses may also be awarded using the same criteria. We adhere to UK Government requirements for the payment of the national minimum wage.

Risk management

The Trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate and manage exposure to the major risks. The major risks identified by the Trustees are recorded in the Branch's risk register which is reviewed on a six monthly basis.

Events since the end of the year

Information relating to events since the end of the year is given in the notes to the financial statements.

Key Management Personnel

During the year the Trustees delegated responsibility for the day-to-day management of the charity to the following senior employees:

Vikki Walsh - Animal Centre Manager

Carl Roberts - Retail Operations Manager

Ged Whiteley - Finance Officer

RSPCA BURY & OLDHAM BRANCH

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

The trustees' report was approved by the Board of Trustees.

.............................. Mr D Haigh Trustee Date: .............................................

RSPCA BURY & OLDHAM BRANCH

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF RSPCA BURY & OLDHAM BRANCH

I report to the trustees on my examination of the financial statements of RSPCA Bury & Oldham Branch (the charity) for the year ended 31 December 2023.

Responsibilities and basis of report

As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with 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) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

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

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 financial statements to be reached.

Champion TLL Limited

P Buck FCA, DChA

7-9 Station Road Hesketh Bank Preston Lancashire PR4 6SN

Dated: .........................

RSPCA BURY & OLDHAM BRANCH

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2023

Unrestricted Unrestricted
funds
funds
general designated
2023
2023
Notes
£
£
Income and endowments from:
Donations and legacies
3
118,781
-
Charitable activities
4
717
-
Other trading activities
5
755,744
-
Investments
6
630
-
Other income
7
420
-
Total income
876,292
-
Expenditure on:
Raising funds
8
831,793
-
Charitable activities
9
7,860
36,514
Other expenditure
13
-
-
Total expenditure
839,653
36,514
Net losses on
investments
14
-
-
Net income/(expenditure)
36,639
(36,514)
Transfers between
funds
(18,573)
18,573
Net movement in
funds
18,066
(17,941)
Reconciliation of funds:
Fund balances at 1 January
2023
101,879
1,481,183
Fund balances at 31
December 2023
119,945
1,463,242		 Total
Unrestricted Unrestricted
funds
funds
general designated
2023
2022
2022
£
£
£
118,781
52,401
-
717
51,089
-
755,744
675,436
-
630
4,522
-
420
-
-
876,292
783,448
-
831,793
541,066
-
44,374
330,911
40,604
-
992
-
876,167
872,969
40,604
-
(5,749)
-
125
(95,270)
(40,604)
-
2,443
(2,443)
125
(92,827)
(43,047)
1,583,062
194,706
1,524,230
1,583,187
101,879
1,481,183		 Total
2022
£
52,401
51,089
675,436
4,522
-
783,448
541,066
371,515
992
913,573
(5,749)
(135,874)
-
(135,874)
1,718,936
1,583,062

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

RSPCA BURY & OLDHAM BRANCH

BALANCE SHEET

AS AT 31 DECEMBER 2023

Notes
Fixed assets
Tangible assets
16
Current assets
Stocks
17
Debtors
18
Cash at bank and in hand
Creditors: amounts falling due within
one year
19
Net current assets
Total assets less current liabilities
The funds of the charity
Unrestricted funds - general
Unrestricted funds - designated
20		 2023
£
£
1,448,242
10,000
65,532
133,089
208,621
73,676
134,945
1,583,187
119,945
1,463,242
1,583,187		 2022
£
£
1,481,183
10,000
60,364
97,774
168,138
66,259
101,879
1,583,062
101,879
1,481,183
1,583,062		 2022
£
£
1,481,183
10,000
60,364
97,774
168,138
66,259
101,879
1,583,062
101,879
1,481,183
1,583,062
1,583,062
101,879
1,481,183
1,583,062

The financial statements were approved by the trustees on .........................

.............................. .............................. Mr D Haigh Mrs D Peart Trustee Trustee

RSPCA BURY & OLDHAM BRANCH

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2023

Notes
Cash flows from operating activities
Cash generated from/(absorbed by)
operations
24
Investing activities
Purchase of tangible fixed assets
Proceeds from disposal of tangible fixed
assets
Proceeds from disposal of investments
Investment income received
Net cash (used in)/generated from
investing activities
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2023
£
(3,573)
-
-
630		 £
38,258
(2,943)
-
35,315
97,774
133,089		 2022
£
-
1,451
91,073
4,522		 £
(78,814)
97,046
-
18,232
79,542
97,774

RSPCA BURY & OLDHAM BRANCH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

Charity information

RSPCA Bury & Oldham Branch is a local branch of the national RSPCA organisation. It is controlled by it's governing document which is the RSPCA branch rules and is an unicorporated charity.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Designated funds are free reserves that have been designated by the trustees for specific purposes. These are further disclosed in the notes to the accounts.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

RSPCA BURY & OLDHAM BRANCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold property 2% on cost
Short Leasehold 33% on cost
Plant and machinery 15% on cost
Computer equipment 15% on cost
Motor vehicles 25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

RSPCA BURY & OLDHAM BRANCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

(Continued)

1.10 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.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.11 Taxation

The charity is exempt from tax on its charitable activities.

1.12 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

RSPCA BURY & OLDHAM BRANCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Income from donations and legacies

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Donations and gifts 76,861 51,401
Legacies receivable 18,936 -
Grants 22,984 1,000
118,781 52,401
Grants receivable for core activities
RSPCA Door to Door grant 22,984 -
Other - 1,000
22,984 1,000
4 Income from charitable activities
Unrestricted Unrestricted
funds funds
2023 2022
£ £
Animal centre
Sale of goods 717 33,653
Animal welfare
Sale of goods - 17,436
717 51,089

RSPCA BURY & OLDHAM BRANCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

5 Income from other trading activities

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Fundraising events 10,226 11,405
Shop income 745,518 664,031
Other trading activities 755,744 675,436

6 Income from investments

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Income from listed investments - 4,512
Interest receivable 630 10
630 4,522

7 Other income

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Other income 420 -
Expenditure on raising funds
Unrestricted Unrestricted
funds funds
2023 2022
£ £
Trading costs
Staff costs 513,527 302,250
Support costs 318,266 238,816
831,793 541,066

8 Expenditure on raising funds

RSPCA BURY & OLDHAM BRANCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

9 Expenditure on charitable activities

Animal Animal
centre centre
2023 2022
£ £
Direct costs
Depreciation and impairment 36,514 40,604
Provision of services in animal welfare 7,860 324,846
44,374 365,450
Share of support and governance costs (see note 10)
Governance - 6,065
44,374 371,515
Analysis by fund
Unrestricted funds - general 7,860 330,911
Unrestricted funds - designated 36,514 40,604
44,374 371,515
10 Support costs allocated to activities
Support costs allocated to activities
2023 2022
£ £
Purchases 5,815 4,707
Gift aid expenditure 7,443 7,020
Rent and rates 144,828 154,552
Insurance 5,696 5,836
Heat and light 49,380 16,282
Other general premises expenditure 69,422 47,927
Travelling and entertainment - 44
Vehicle costs 10,414 1,687
Telephone and internet 14,666 110
Bank charges and interest 436 651
Governance costs 10,166 6,065
318,266 244,881
Analysed between:
Fundraising 318,266 238,816
Animal centre - 6,065
318,266 244,881

During the year all support and governance costs have been allocated 100% to fundraising activities. This is as a result of a restructuring being undertaken which has led to the temporary cessation of boarding activities.

RSPCA BURY & OLDHAM BRANCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

11 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

12 Employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries		 2023
Number
29
2023
£
513,527		 2022
Number
34
2022
£
302,250

The key management personnel of the charity during the year comprised the Trustees, Retail Operations Manager and the Animal Centre Manager. The total employee benefits of the key management personnel of the charity were £65,959 (2022: £130,613)

There were no employees whose annual remuneration was more than £60,000.

13 Other

Total Unrestricted
funds
£ general
2023 2022
Net loss on disposal of tangible fixed assets - 992
- 992
Gains and losses on investments
Unrestricted Unrestricted
funds funds
2023 2022
Gains/(losses) arising on: £ £
Sale of investments - (5,749)

14 Gains and losses on investments

15 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

RSPCA BURY & OLDHAM BRANCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

16
Tangible fixed assets
Cost
At 1 January 2023
Additions
At 31 December 2023
Depreciation and
impairment
At 1 January 2023
Depreciation charged in the
year
At 31 December 2023
Carrying amount
At 31 December 2023
At 31 December 2022		 Freehold
property
£
1,662,978
-
1,662,978
188,595
33,260
221,855
1,441,123
1,474,383		 Short
Leasehold
£
159,512
-
159,512
157,648
1,863
159,511
1
1,863		 Plant and
machinery
£
31,202
3,573
34,775
30,964
176
31,140
3,635
238		 Computer
equipment
£
54,273
-
54,273
54,219
54
54,273
-
54		 Motor
vehicles
£
51,940
-
51,940
47,296
1,161
48,457
3,483
4,645		 Total
£
1,959,905
3,573
1,963,478
478,722
36,514
515,236
1,448,242
1,481,183

Included within freehold property is land costing £100,000 which is not depreciated.

17 Stocks

Finished goods and goods for resale
18
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income		 2023
£
10,000
2023
£
(1)
32,747
32,786
65,532		 2022
£
10,000
2022
£
50
31,829
28,485
60,364

RSPCA BURY & OLDHAM BRANCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

19 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Trade creditors
Accruals and deferred income		 2023
£
53,134
20,542
73,676		 2022
£
55,009
11,250
66,259

20 Unrestricted funds - designated

These are unrestricted funds which are material to the charity's activities.

At
Designated - Fixed Assets
Designated - Future charitable activities
Previous year:
At
Designated - Fixed Assets		 1 January
2023
Resources
expended
£
£
1,481,183
(36,514)
-
-
1,481,183
(36,514)
1 January
2022
Resources
expended
£
£
1,524,230
(40,604)		 Transfers
At 31
December
2023
£
£
3,573
1,448,242
15,000
15,000
18,573
1,463,242
Transfers
At 31
December
2022
£
£
(2,443)
1,481,183

RSPCA BURY & OLDHAM BRANCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

21 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At
Designated -
Fixed Assets
Designtaed -
Future
charitable
activities
General funds
Previous year:
At
Designated -
Fixed Assets
General funds		 1 January
2023
Incoming
resources
Resources
expended
£
£
£
1,481,183
-
(36,514)
-
-
-
101,879
876,292
(839,653)
1,583,062
876,292
(876,167)
1 January
2022
Incoming
resources
Resources
expended
£
£
£
1,524,230
-
(40,604)
194,706
783,448
(872,969)
1,718,936
783,448
(913,573)		 Transfers
Gains and
losses
At 31
December
2023
£
£
£
3,573
-
1,448,242
15,000
-
15,000
(18,573)
-
119,945
-
-
1,583,187
Transfers
Gains and
losses
At 31
December
2022
£
£
£
(2,443)
-
1,481,183
2,443
(5,749)
101,879
-
(5,749)
1,583,062		 Transfers
Gains and
losses
At 31
December
2023
£
£
£
3,573
-
1,448,242
15,000
-
15,000
(18,573)
-
119,945
-
-
1,583,187
Transfers
Gains and
losses
At 31
December
2022
£
£
£
(2,443)
-
1,481,183
2,443
(5,749)
101,879
-
(5,749)
1,583,062
1,583,062

The Designated Fund represents the net book value of unrestricted assets which do not consist of liquid balances.

A further £15,000 has been designated in the year to safeguard the charitable activities of the charity.

22 Analysis of net assets between funds

Unrestricted
Unrestricted
funds
funds
general
designated
2023
2023
£
£
Fund balances at 31 December 2023 are represented by:
Tangible assets
-
1,448,242
Current assets/(liabilities)
119,945
15,000
119,945
1,463,242		 Total
2023
£
1,448,242
134,945
1,583,187

RSPCA BURY & OLDHAM BRANCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

22 Analysis of net assets between funds

Analysis of net assets between funds (Continued)
Unrestricted Unrestricted Total
funds funds
general designated
2022 2022 2022
£ £ £
Fund balances at 31 December 2022 are represented by:
Tangible assets - 1,481,183 1,481,183
Current assets/(liabilities) 101,879 - 101,879
101,879 1,481,183 1,583,062

23 Related party transactions

Transactions with related parties

During the year the charity entered into the following transactions with related parties:

The branch is a member of the RSPCA National legacy scheme under which the national society administer the legacies left to the branch for a nominal fee of 2.5%. Legacies shown in these accounts are net of the 2.5% deducted by the national society. The amount received through this scheme during the year was £18,936 (2022: £NIL).

We also received a door-to-door donation from the RSPCA National Society of £22,984.

The branch also transacts with the national society by providing boarding services to animals rescued by the national society in their region. The amount charged to RSPCA national for these services in the year amount to £717 (2022: £49,746). The balance outstanding at the year end is £NIL (2022: £NIL) and is shown in Trade Debtors.

The branch purchase items of medical equipment and other items from the national society. The amount charged by the national society in the year amounted to £2,410 (2022: £3,657). The balance owing at the year end is £52,620 (2022: £52,620) and is shown in Trade Creditors.

RSPCA BURY & OLDHAM BRANCH

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

24
Cash generated from operations
Surplus/(deficit) for the year
Adjustments for:
Investment income recognised in statement of financial activities
(Gain)/loss on disposal of tangible fixed assets
(Gain)/loss on disposal of investments
Depreciation and impairment of tangible fixed assets
Movements in working capital:
(Increase) in stocks
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Cash generated from/(absorbed by) operations		 2023
2022
£
£
125
(135,874)
(630)
(4,522)
-
992
-
5,749
36,514
40,604
-
(5,000)
(5,168)
74,009
7,417
(54,772)
38,258
(78,814)

25 Analysis of changes in net funds

The charity had no material debt during the year.

26 Going Concern

The Trustees keep the level of general reserves under constant review. The Trustees are aware that the current reserve levels are below the target levels .Whilst they are at these levels there are contingencies in place, including the availability to attract finance should it be needed, that would allow the Charity to continue. Therefore the Trustees believe that preparing the accounts on a Going Concern basis is correct having considered the foreseeable future and the plans that are in place to increase income and minimise costs.