Royal Society for the Prevention of Cruelty to Animals
Liverpool Branch
TRUSTEES’ ANNUAL REPORT AND ACCOUNTS FOR 2021
Registered Charity Number 232254
ROYAL SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS LIVERPOOL BRANCH
Year ended 31st December 2021
PATRONS:
Sir James Sharples, Q.P.M.
PRESIDENT:
The Lord Mayor of Liverpool
VICE-PRESIDENTS:
The Mayor of the Metropolitan Borough of Knowsley The Mayor of the Metropolitan Borough of Sefton
A LITTLE HISTORY
“The Liverpool Society For Preventing Wanton Cruelty To Brute Animals” was formed by a group of people who got together in the Crown & Anchor Coffee House in Bold Street Liverpool at 7pm on the 25th October 1809. Thus came into being the first animal welfare society in the world. 1809 was the jubilee year of H.M. George III and 25th October was jubilee day. England was at war with France and Napoleon had banned trade between the conquered continental countries and England.
Reports of the Society’s work appeared regularly in “Billinges Liverpool Advertiser and Marine Intelligence”. These reports were ill received by certain hauliers and carters who could see that their sick and infirm animals might be prevented from working. This resulted in members of the Society being waylaid after their meetings and in consequence meetings had to be held in secret.
In succession, RSPCA LIVERPOOL BRANCH was established in 1841.
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Royal Society for the Prevention of Cruelty to Animals Liverpool Branch
INDEX
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2 INDEX
-
3-4 STATEMENT OF TRUSTEES’ RESPONSIBILITIES
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5-7 TRUSTEES’ REPORT
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8 INDEPENDENT EXAMINER’S REPORT
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9 STATEMENT OF FINANCIAL LIABILITIES
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10 BALANCE SHEET
11-22 NOTES TO THE FINANCIAL STATEMENTS
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ROYAL SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS LIVERPOOL BRANCH
Year ended 31st December 2021
TRUSTEES’ REPORT
Registered Charity No. 232254
Principal Office:
2[nd] Floor, Unity Building, 20 Chapel Street, Liverpool L3 9AG Phone: 0151 705 9090
The Governing Documents and Constitution :
RSPCA Branch Model Rules revised September 2006 and the Charity Commission Scheme 30th April 1971. The Charity is constituted as an unincorporated association.
BRANCH COMMITTEE
Officers:
Chairman: Mrs F. LYE Hon. Treasurer: Mrs E BAXTER Hon. Secretary: Mrs C. MALTON
Members:
Ms G. LYE Ms L. FARRAR Mrs I. GARNIER Ms N. McQUAID
Appointment of Trustees:
Trustees are elected from Branch members at every Annual General Meeting to carry on the work for the ensuing year. The members of the Committee shall consist of no less than seven or more than fourteen elected members. The elected Committee can co-opt not more than three persons who shall be members of the Branch Committee until the next Annual General Meeting and who are eligible to be appointed as officers of the Branch.
Branch Secretary & Administrator:
Mr J.P. SMALLWOOD, DMA, ACIS, FRSA
Bankers:
HSBC BANK plc 99-101 Lord Street, Liverpool L2 6PG
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Reporting Accountants:
MOORE (NW) LLP 110-114 Duke Street, Liverpool L1 5AG (0151 703 1080)
Investment Managers:
RATHBONE INVESTMENT MANAGEMENT LTD Port of Liverpool Building, Pier Head, Liverpool L3 1NW (0151 236 6666)
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TRUSTEES ANNUAL REPORT
Year ended 31[st] December 2021
The Trustees present their report and financial statements of the charity for the year ended 31[st] December 2021.
On 8[th] December 2022 the Charity Commission for England & Wales gave the charity exemption from audit for the year ended 31[st] December 2021 under a dispensation within Regulation 31(f).
LEGAL STATUS
The charity is constituted as an unincorporated association, its registered charity number being 232254. The principal office is now at 2[nd] Floor, Unity Building, 20 Chapel Street, Liverpool, L3 9AG.
Trustees are elected from Branch members at every Annual General Meeting to carry on the work for the ensuing year. The members of the Committee shall consist of no less than seven or more than fourteen elected members. The elected Committee can co-opt not more than three persons who shall be members of the Branch Committee until the next Annual General Meeting and who are eligible to be appointed as officers of the Branch. All Trustees are briefed on their responsibilities as Trustees prior to their acceptance of the role.
The Branch currently has 7 Trustees.
The RSPCA Liverpool Branch is a separate Charity (No. 232254) from the National Society but is subject to and operates under the Rules for the National Society and the Rules for Branches as updated in 2006.
OBJECTIVES, FUNCTIONS AND PUBLIC BENEFIT STATEMENT
The object of the charity is to prevent cruelty and to promote kindness to animals within the Liverpool and Merseyside area as defined by the Society.
The Trustees have reviewed the outcomes and achievements of our objectives and activities for the year to ensure they remain focused on our charitable aims and continue to deliver benefits to the public. We have complied with the duty under the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission.
ORGANISATION
The Branch operates as an autonomous Branch of the RSPCA subject to its rules for Branches. The Branch is governed by a Committee elected at the AGM who are Trustees of the Branch. The Committee is responsible for the management, financial affairs and animal welfare activities conducted by the Branch.
During the year the Committee employed a Secretary/Administrator and a bookkeeper who both retired in July 2021.
The Committee meets 6 times a year to take significant policy or financial decisions on behalf of the Branch.
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PARTNERSHIPS
The Branch operates a Welfare Voucher Scheme in partnership with Cats Protection and Care for the Paw to support their outreach work in deprived parts of Liverpool. The Branch also works closely with the Society’s Inspectorate providing financial support for animal welfare and neutering.
THE SALE OF THE LIVERPOOL ANIMAL CENTRE, HALEWOOD
On 8[th] April 2021 the Sale of land at Liverpool Animal Centre, Higher Road, Halewood Liverpool L26 9TX to Miller Homes Limited was completed. The sale proceeds amounted to £5,000,000 of which £3,750,000 was received on completion and £1,250,000 was deferred for one year. The balance of sale proceeds was received in April 2022.
FINANCIAL REVIEW
Total income for 2021 rose from £209,596 in 2020 to £4,103,721. This can largely be accounted for by the sale of land as described above and a decrease in legacy income from £177,376 in 2020 to £19,693 in 2021. Since 2002 the Branch has received, on average, £243,000 per annum from legacies and this drop has had a major impact on the Branch.
Expenditure increased to £582,144 compared with £155,870 in 2020 which was largely due to the settlement of the pension scheme deficit amounting to £608,978 over and above the provision of £151,000 provided in prior periods.
RELATED PARTY TRANSACTIONS
There were no related party transactions in 2021 and no Trustee received any remuneration or expenses.
RISK ANALYSIS
In previous years the trustees had identified several factors which would pose a risk to the Branch. With the decision taken to close the centre and cease operating in 2019 the main risk was for insufficient trustees to be recruited to continue the Branch work. The other risk identified previously was the loss of legacy income which had continued at a very low level compared with previous years. The trustees were satisfied that there were sufficiently robust procedures in place together with the employment of suitably qualified and experienced staff to minimise the risk error or fraud.
RESERVES POLICY
In view of the current financial position, the Branch is not in a position to formulate a reserves policy. Free reserves stood at £781,792 at the year-end.
INVESTMENT POLICY
Following the sale of the Branch’s land at Halewood, substantial funds were available for Investment. The Trustees met with our portfolio management consultants and a strategy was discussed and agreed.
The Branch portfolio is managed by Rathbones Investment Management on a discretionary basis. The portfolio value at 31[st] December 2021 was £2,796,965, which includes £1,306,564 cash on deposit and at 31[st] December 2020 was £50,449.
STATEMENT OF TRUSTEES RESPONSIBILITIES
The Charities Act requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity at the end of the year and of the surplus or deficiency for the year then ended. In preparing these financial statements,
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the Trustees are required to select suitable accounting policies, as described on pages 11 to 22 and then apply them on a consistent basis, making judgements and estimates that are prudent and reasonable. The Trustees must also prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011. The Trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
GOING CONCERN
These financial statements have been prepared on the going concern basis. The Branch had been experiencing cash flow difficulties and was dependent upon the continuing financial support given by the National Society. Following the sale of the land at Halewood the Branch was able to repay, in full, the amounts loaned by the National Society in the sum of £1,026,176 on 15[th] June 2021. Following the year end, the Branch also withdrew from the Scottish Voluntary Sector Pension Scheme by paying the agreed exit valuation in the sum of £608,978. The Trustees believe that the going concern basis is entirely appropriate for these financial statements.
Approved by the Committee on 19[th] December 2022
Mrs F. Lye
Mrs E. Baxter
TRUSTEES
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ROYAL SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS, LIVERPOOL BRANCH
INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES
YEAR ENDED 31 DECEMBER 2021
I report on the accounts of the Royal Society for the Prevention of Cruelty to Animals, Liverpool Branch for the year ended 31 December 2021, which are set out on pages 9 to 22.
Respective responsibilities of trustees and examiner
The charity’s trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. The Charity’s gross income exceeded £1,000,000 for the year ended 31 December 2021 and therefore an audit would have been required. On 8[th] December 2022 the Charity Commission gave dispensation from audit under Regulation 31(f).
It is my responsibility to:
-
examine the accounts under section 145 of the 2011 Act
-
to follow the procedures laid down in the general Directions given by the commission under section 145(5)(b) of the 2011 Act
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to state whether particular matters have come to my attention
-
in addition to the above we will specifically review all the supporting documentation with respect to the sale of land, repayment of loan monies to RSPCA National Society, settlement of the pension deficit and the investing of funds with the Investment Managers
Basis of independent examiner’s report
My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the next statement.
Independent examiner’s statement
In connection with my examination, no matter has come to my attention:
-
(1) which gives me reasonable cause to believe that in any material respect the requirements:
-
to keep accounting records in accordance with section 130 of the 2011 Act and
-
to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Act
have not been met
No matters have come to my attention in connection with my examination to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Keith Miller
5[th] January 2023
Chartered Accountant
Moore (NW) LLP 110-114 Duke Street Liverpool
L1 5AG
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ROYAL SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS, LIVERPOOL BRANCH
STATEMENT OF FINANCIAL ACTIVITIES
YEAR ENDED 31 DECEMBER 2021
| Note INCOME AND ENDOWMENTS Donations 2 Legacies 3 Other Trading Activities Sales, Events and Promotions Income from Investments Investment income 4 Income from Charitable Activities Fees charged Other Income Other income Sale of land and buildings Grants Received TOTAL INCOME AND ENDOWMENTS EXPENDITURE Raising Funds Investment Management Costs Charitable Activities 5 Governance Costs 6 TOTAL EXPENDITURE 7 Net (losses)/gains on investment assets NET INCOME/(EXPENDITURE) OTHER RECOGNISED GAINS AND LOSSES Realised gain/loss on investments Unrealised gain/loss on investments Net movement in funds relating to the year Reconciliation of Funds Total Funds brought forward Total Funds carried forward |
Unrestricted Funds Restricted Funds 2021 Total Funds 2021 Total Funds 2020 2021 £ £ £ £ 30,272 - 30,272 31,017 19,693 - 19,693 177,376 |
|---|---|
| 49,965 - 49,965 208,393 933 1,505 2,438 1,070 |
|
| 933 1,505 2,438 1,070 |
|
| 1,206 1,946 3,152 3 |
|
| 1,206 1,946 3,152 3 |
|
| - - - - |
|
| - - - - |
|
| - - - 130 1,539,404 2,483,051 4,022,455 - - - - |
|
| 1,539,404 2,483,051 4,022,455 130 |
|
| 1,591,509 2,486,502 4,078,010 209,596 |
|
| 2,111 3,405 5,517 - 533,663 20,087 553,750 123,888 22,877 - 22,877 31,982 |
|
| 558,652 23,492 582,144 155,870 |
|
| - - - - 1,032,857 2,463,009 3,495,866 53,726 (211) (341) (552) - 9,840 15,871 25,711 - |
|
| 1,042,485 2,478,540 3,521,025 53,726 (283,932) 344,106 60,174 6,448 758,553 2,822,646 3,581,199 60,174 |
The notes on pages 11 to 22 form part of these accounts
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ROYAL SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS, LIVERPOOL BRANCH
BALANCE SHEET
31 DECEMBER 2021
| Note £ FIXED ASSETS Tangible assets 9 Investments 10 CURRENT ASSETS Debtors 12 Cash at bank CREDITORS: Amounts falling due within one year 13 NET CURRENT ASSETS/(LIABILITIES) TOTAL ASSETS LESS CURRENT LIABILITIES PROVISION FOR LIABILITIES Pension Deficit14 NET ASSETS FUNDS Unrestricted 16 Restricted 17 TOTAL FUNDS |
2021 £ £ 2,442 2,796,965 2,799,407 1,252,863 149,735 1,402,599 (19,268) 1,383,330 4,179,967 (601,538) 3,581,199 758,553 2,822,646 3,581,199 |
2020 £ 980,764 50,449 |
|---|---|---|
| 1,031,213 14,910 219,495 |
||
| 234,405 (1,054,444) |
||
| (820,039) | ||
| 211,174 (151,000) |
||
| 60,174 | ||
| (283,932) 344,106 |
||
| 60,174 |
These financial statements were approved and signed by the members of the committee on 19[th] December 2022.
Mrs F. Lye
Mrs E. Baxter
The notes on pages 11 to 22 form part of these accounts
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ROYAL SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS, LIVERPOOL BRANCH
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2021
1. ACCOUNTING POLICIES
Legal Status
The charity is a public benefit entity and is constituted as an unincorporated association, its registered charity number being 232254.
Basis of accounting
The financial statements have been prepared in accordance with the Financial Reporting Standard 102, as issued by the Financial Reporting Council (effective 1 January 2015) and the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102)”. They are prepared on the historical cost basis, except for investments which have been included at fair value.
Before 2015 the financial statements were prepared in accordance with UK GAAP applicable prior to the adoption of FRS102, as issued by the Financial Reporting Council and the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” and referred to as “previous UK GAAP”. The financial effects of the transition to FRS102 are set out in note 18 below.
Going Concern
These financial statements have been prepared on the going concern basis
Legacies, donations, voluntary income and fees charged
Cash donations, gifts and fees charged are included in full in the Statement of Financial Activities as they become receivable. Fees charged are monies invoiced to the RSPCA National Society for the accommodation of cruelty case dogs. Legacies are included in the Statement of Financial Activities when the monetary value of the Legacy is known and confirmation has been received that the legacy is due.
Grants
Grants, including grants for the purchase of fixed assets, are recognised in full in the Statement of Financial Activities in the year in which they are receivable.
Investments
Fixed asset investments are disclosed in the financial statements at market value. Unrealised gains or losses on investments are provided for in the Statement of Financial Activities.
Share Disposals
Realised gains/losses on the sale of shares are calculated by deducting the cost of investments from the net proceeds received. Unrealised gains/losses represent the movement during the year of the market value of listed investments, net of any unrealised gains/losses becoming realised on disposal of investments during the year.
Taxation
The society is a registered charity and is therefore not liable to corporation tax.
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ROYAL SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS, LIVERPOOL BRANCH
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2021
Depreciation
Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:
Freehold Buildings - 2% on cost Fixtures and Fittings - 20% reducing balance method Motor Vehicles - 25% reducing balance method
Operating lease agreements
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.
Governance activity
Staff costs and accommodation costs of the branch office, 2[nd] Floor, Unity Building, 20 Chapel Street, Liverpool L3 9AG), are apportioned between Governance costs and Charitable activity costs in the ratio of 2:3. This is based on the level of staff time attributable to the two functions. Due to the nature of the management function it is not possible to split costs between Governance Activity and Support Costs.
Pension costs
The charity operated a multi-employer defined benefit scheme. The assets of the scheme are held separately from those of the charity. The contributions to the scheme are charged to the Statement of Financial Activities so as to spread the cost of pensions over the service lives of employees. Variations from the regular costs are spread over the average expected remaining working lives of current members in the scheme.
The charity also operates a stakeholder pension scheme for auto enrolment purposes.
Financial Instruments
The RSPCA Liverpool Branch has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the balance sheet when the Branch 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 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.
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ROYAL SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS, LIVERPOOL BRANCH
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2021
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 receipts discounted at a market rate of interest. Financial liabilities are classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business 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 Branch’s contractual obligations expire or are discharged or cancelled.
2. DONATIONS
| Total Funds | Total Funds | |||
|---|---|---|---|---|
| 2021 | 2020 | |||
| £ | £ | |||
| Subscriptions, donations and collections | 30,272 | 31,017 | ||
| ============= | ============= | |||
| LEGACIES | ||||
| Total Funds | Total Funds | |||
| 2021 | 2020 | |||
| £ | £ | |||
| Legacies | 19,693 | 177,376 | ||
| =============== | =============== | |||
| INVESTMENT INCOME | ||||
| Value | Value | Income | Income | |
| 2021 | 2020 | 2021 | 2020 | |
| £ | £ | £ | £ | |
| UK quoted and foreign investments | 1,490,401 | - | 2,886 | - |
| UK portfolio cash | 1,306,564 | 50,449 | 266 | 3 |
| ----------------------------------------- | -------------------------------- | -------------------------------- | -------------------------------- | |
| 2,796,965 | 50,449 | 3,152 | 3 | |
| = ================ | =============== | = ============== | =============== | |
| CHARITABLE ACTIVITIES | ||||
| Unrestricted | Restricted | Total Funds | Total Funds | |
| Funds 2021 | Funds 2021 | 2021 | 2020 | |
| £ | £ | |||
| Provision of charitable services: | ||||
| Branch Office | 498,519 | - | 498,519 | 28,165 |
| Halewood Animal Home | 35,144 | 20,087 | 55,231 | 95,723 |
| ------------------------------------ | ------------------------------------- | ------------------------------------ | -------------------------------------- | |
| 533,663 | 20,087 | 553,750 | 123,888 | |
| =============== | =============== | =============== | =============== |
3. LEGACIES
4. INVESTMENT INCOME
5. CHARITABLE ACTIVITIES
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ROYAL SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS, LIVERPOOL BRANCH
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2021
5. CHARITABLE ACTIVITIES (continued)
| Analysis of provision of charitable | services: | |||
|---|---|---|---|---|
| Branch | Halewood | Total 2021 | Total 2020 | |
| £ | £ | £ | £ | |
| Unrestricted Funds | ||||
| Wages | 10,099 | - | 10,099 | 36,122 |
| Pension | 474,076 | - | 474,076 | - |
| Rent | 10,275 | - | 10,275 | 8,214 |
| Rates and insurance | - | 9,497 | 9,497 | 30,751 |
| Light and heat | - | 524 | 524 | 2,383 |
| Printing, stationery and telephone |
1,008 | 1,322 | 2,330 | 3,033 |
| Motor expenses | - | - | - | 1,213 |
| Vets and drugs | - | 95 | 95 | 1,171 |
| Neutering | - | 293 | 293 | - 100 |
| Legal & Professional fees | - | 22,253 | 22,253 | 6,770 |
| Sundry | 3,061 | 122 | 3,183 | 387 |
| Cleaning | - | - | - | 106 |
| Depreciation – Net | - | 610 | 610 | 14,500 |
| Profit on disposal of fixed assets | - | - | - | - 205 |
| Finance cost | - | - | - | 2,000 |
| Loan Interest | - | 428 | 428 | 2,693 |
| -------------------------------- | ------------------------------------- | ------------------------------------- | ------------------------------------- | |
| 498,519 | 35,144 | 533,663 | 109,038 | |
| ============= | =============== | =============== | =============== | |
| Restricted Funds | ||||
| Depreciation | - | - | - | 14,850 |
| Legal Expenses | - | 20,087 | 20,087 | - |
| ============= | =============== | =============== | =============== | |
| Total Funds | 498,519 | 55,231 | 553,750 | 123,888 |
| ============= | =============== | =============== | =============== |
6. GOVERNANCE COSTS
| Total Funds | Total Funds |
|
|---|---|---|
| 2021 | 2020 | |
| £ | £ | |
| Salaries | 6,732 | 11,701 |
| Rent | 6,850 | 5,476 |
| Printing, stationery and phone | 1,555 | 920 |
| Independent Examination Fee | 3,720 | 3,100 |
| Motor and travelling | 16 | 126 |
| Computer costs | 3,782 | 3,978 |
| Quota parent society | - | 110 |
| Bank interest and charges | 222 | 129 |
| General expenses | - | 6,345 |
| Depreciation | - | 97 |
| ---------------------------- | ---------------------------- | |
| 22,877 | 31,982 | |
| ============= | ============= |
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ROYAL SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS, LIVERPOOL BRANCH
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2021
7. TOTAL RESOURCES EXPENDED
| Total Funds | Total Funds | ||||
|---|---|---|---|---|---|
| Staff costs | Depreciation | Other costs | 2021 | 2020 | |
| £ | £ | £ | £ | £ | |
| Cost of generating | |||||
| funds | - | - | 5,517 | 5,517 | - |
| Charitable activity |
10,099 | 610 | 543,041 | 553,750 | 123,888 |
| Governance activity | 6,732 | - | 16,145 | 22,877 | 31,982 |
| -------------------------------------- | -------------------------------- | -------------------------------------- | -------------------------------------- | -------------------------------------- | |
| 16,831 | 610 | 564,703 | 582,144 | 155,870 | |
| =============== | ============= | =============== | =============== | =============== | |
| The aggregate payroll | costs were: | ||||
| 2021 | 2020 | ||||
| £ | £ | ||||
| Wages and salaries | 16,831 | 38,732 | |||
| Social security costs | - | 1,167 | |||
| Other pension costs | - | 7,924 | |||
| ------------------------------------- | ------------------------------------- | ||||
| 16,831 | 47,823 | ||||
| =============== | =============== |
The aggregate payroll costs were:
Particulars of employees:
The average number of staff employed by the charity during the financial year amounted to:
| 2021 | 2020 | |
|---|---|---|
| No. | No. | |
| Branch | 2 | 2 |
| Halewood | 0 | 1 |
| -------------- | -------------- | |
| 2 | 3 | |
| ====== | ====== |
No employee earned £60,000 per annum or more. No trustee received any remuneration or expenses.
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Other costs: | ||
| Premises |
27,147 | 46,823 |
| Legal and professional |
51,576 | 9,870 |
| Finance costs re pension scheme |
- | 2,000 |
| Pension |
474,076 | - |
| Other |
11,904 | 20,112 |
| -------------------------------- | -------------------------------- | |
| 564,703 | 78,805 | |
| =============== | =============== | |
| NET INCOMING/(OUTGOING) RESOURCES | ||
| Net movement in funds is stated after charging/(crediting): | ||
| 2021 | 2020 | |
| £ | £ | |
| Staff pension contributions | - | 7,924 |
| Depreciation | 610 | 29,242 |
| Independent Examiners remuneration | ||
| - as independent examiner | 3,720 | 3,100 |
| ============= | ============= |
8. NET INCOMING/(OUTGOING) RESOURCES
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ROYAL SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS, LIVERPOOL BRANCH
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2021
9. TANGIBLE FIXED ASSETS
| Freehold | Motor | |||
|---|---|---|---|---|
| property | Equipment | vehicles | Total | |
| £ | £ | £ | £ | |
| COST | ||||
| At 1 January 2021 | 1,407,526 | 71,862 | 12,210 | 1,491,598 |
| Additions | - | - | - | - |
| Disposals | (1,407,526) | (38,171) | (12,210) | (1,457,907) |
| -------------------------------------------- | ------------------------------------ | -------------------------------- | --------------------------------------------- | |
| At 31 December 2021 | - | 33,691 | - | 33,691 |
| ========-========== | ============== | ============= | ================== | |
| DEPRECIATION | ||||
| At 1 January 2021 | 433,800 | 65,741 | 11,293 | 510,834 |
| Charge for the year | - | 610 | - | 610 |
| On disposals | (433,800) | (35,102) | (11,293) | (480,195) |
| -------------------------------- | ---------------------------- | ---------------------------- | -------------------------------- | |
| At 31 December 2021 | - | 31,249 | - | 31,249 |
| =============== | ============= | ============= | =============== | |
| NET BOOK VALUE | ||||
| At 31 December 2021 | - | 2,442 | - | 2,442 |
| =============== | ============= | ========== | =============== | |
| At 31 December 2020 | 973,726 | 6,121 | 917 | 980,764 |
| =============== | ============= | ========== | =============== |
All of the tangible fixed assets included above are for use by the charity.
10. INVESTMENTS
| Movement in market value | ||
|---|---|---|
| 2021 | 2020 | |
| £ | £ | |
| Market value at 1 January 2021 | 50,449 | 50,446 |
| Acquisitions at cost | 2,748,124 | - |
| Disposals at opening book value | (27,631) | - |
| Unrealised gain/loss on investments | 25,711 | 3 |
| ---------------------------------------- | ---------------------------------------- | |
| Market value at 31 December 2021 | 2,796,965 | 50,449 |
| ================== | ================== | |
| Historical cost at 31 December 2021 | 2,771,254 | 50,449 |
| =============== | =============== | |
| Analysis of investments at 31 December 2021 between funds | ||
| Total Funds | Total Funds | |
| 2021 | 2020 | |
| £ | £ | |
| Listed investments | ||
| UK quoted shares | 1,490,401 | - |
| Foreign Investments | - | - |
| Other | ||
| UK cash held as part of portfolio | 1,306,564 | 50,449 |
| ------------------------------------------- | ------------------------------------------- | |
| 2,796,965 | 50,446 | |
| ================== | ================== |
16
ROYAL SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS, LIVERPOOL BRANCH
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2021
10. INVESTMENTS (continued)
| £ | £ | £ | |
|---|---|---|---|
| Quoted Investments | Restricted Funds | Unrestricted Funds | Total Funds |
| Fixed interest | - | - | - |
| Ordinary shares | 919,851 | 570,550 | 1,490,401 |
| Cash | 806,389 | 500,175 | 1,306,564 |
| ------------------------------------------------ | ------------------------------------------------ | ------------------------------------------------ | |
| 1,726,240 | 1,070,725 | 2,796,965 | |
| ================== | ================== | ================= |
11. RELATED PARTY TRANSACTIONS
There were no transactions with the trustees during the year under review.
12. DEBTORS
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Fees receivable | - | - |
| Other debtors | 1,250,092 | 3,235 |
| Prepayments and accrued income | 2,771 | 11,675 |
| ---------------------------------- | -------------------------------------- | |
| 1,252,863 | 14,910 | |
| ============= | ============= | |
| CREDITORS: Amounts falling due within one year | ||
| 2021 | 2020 | |
| £ | £ | |
| Trade creditors | 7,440 | 17,640 |
| Other creditors | - | 1,242 |
| Emergency loan from Headquarters | - | 1,026,176 |
| Accruals and deferred income | 11,828 | 9,386 |
| ------------------------------------------------ | ----------------------------------------------- | |
| 19,268 | 1,054,444 | |
| ================== | ================= |
13. CREDITORS: Amounts falling due within one year
Emergency Loan
The loan from Headquarters in the sum of £1,026,176 represents sums advanced to the Branch to support the Branch during its present cash flow difficulties. The Loan is secured against the freehold property of the Branch and interest is paid on the amount outstanding to Headquarters. The loan was repaid during the year.
17
ROYAL SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS, LIVERPOOL BRANCH
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2021
14. PENSIONS
The RSPCA, Liverpool Branch participates in the Scottish Voluntary Sector Pension Scheme (the Scheme). The Scheme is a multi-employer defined benefit (DB) pension scheme. The Scheme is funded and was contracted out of the state scheme until 31[st] March 2010, when the scheme was closed to future accrual.
The Scheme operated a single benefit structure, final salary with a 1/60[th] accrual rate until 30 September 2007. From October 2007 there were two benefit structures available, these were final salary with a 1/60[th] accrual rate and final salary with a 1/80[th] accrual rate, until the date of the Scheme closure on 31[st] March 2010.
The scheme closed to future accrual on 31[st] March 2010. There is currently no intention to windup the Scottish Voluntary Sector Pension Scheme and it continues in paid–up form.
The Trustee commissions an actuarial valuation of the Scheme every three years. The main purpose of the valuation is to determine the financial position of the Scheme in order to determine the level of future contributions required so that the Scheme can meet its pension obligations as they fall due.
The actuarial valuation assesses whether the Scheme’s assets at the valuation date are likely to be sufficient to pay the pension benefits accrued by members as at the valuation date. Asset values are calculated by reference to market levels. Accrued pension benefits are valued by discounting expected future benefit payments using a discount rate calculated by reference to the expected future investment returns.
It is not possible in the normal course of events to identify on a consistent and reasonable basis the share of underlying assets and liabilities belonging to individual participating employers. This is because the Scheme is a multi-employer scheme where the Scheme assets are co-mingled for investment purposes and benefits are paid from total scheme assets. Accordingly, due to the nature of the Scheme, the accounting charge for the period under FRS102 represents the employer contribution payable as adjusted for the present value of future payments to fund the scheme deficit.
A formal full actuarial valuation of the Scheme was performed as at 30 September 2017, by a professionally qualified actuary. This actuarial valuation was certified on 19[th] December 2018 and showed that the market value of the Scheme’s assets as at the 30[th] September 2017 was £120.0 million. The Scheme liabilities at that date amounted to £145.9 million. The valuation revealed a shortfall of assets compared with the value of liabilities of £25.9 million.
The financial assumptions underlying the valuation as at 30 September 2017 were as follows:
-
% pa
-
- Pre retirement discount rate Gilt curve plus 1.30% - Post retirement discount rate Gilt curve plus 0.45% - Inflation (RPI growth) RPI inflation curve - Inflation (CPI growth) RPI less 0.90% - Earnings growth RPI - Return on assets over deficit recovery period 2.80%
-
Return on assets over deficit recovery period
-
Revaluation up to retirement
RPI
- Pension increases in payment In line with inflation assumptions with
relevant caps and collars and adjusted in line with statistical distribution for increases in payment. The model used is the BlackScholes Model with 1.75% pa volatility
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ROYAL SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS, LIVERPOOL BRANCH
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2021
14. PENSIONS (Continued)
If an actuarial valuation reveals a shortfall of assets compared to liabilities the Trustee must prepare a recovery plan setting out the steps to be taken to make up the shortfall.
From 1 April 2019 a new recovery plan came into effect, following the finalisation of the 2017 valuation. If the valuation assumptions are borne out in practice, this pattern of contributions should be sufficient to eliminate the entire funding shortfall by 30 September 2026.
A copy of the recovery plan must be sent to The Pensions Regulator after each valuation is finalised. The Regulator has the power under Part 3 of the Pensions Act 2004 to issue Scheme funding directions where it believes that the actuarial valuation assumptions and/or recovery plan are inappropriate. For example the Regulator could require that the Trustee strengthens the actuarial assumptions (which would increase the scheme liabilities and hence have impact on the recovery plan) or impose a schedule of contributions on the Scheme (which would effectively amend the terms of the recovery plan).
The recovery plan from the 2017 valuation has been submitted to The Pensions Regulator.
Following a change in legislation in September 2005 there is a potential debt on the employer that could be levied by the Trustee of the Scheme. The debt is due in the event of the employer becoming insolvent or ceasing to participate in the Scheme or the Scheme winding up.
The debt for the Scheme as a whole is calculated by comparing the liabilities for the Scheme (calculated on a buyout basis i.e. the cost of securing benefits by purchasing annuity policies from an insurer, plus an allowance for expenses) with the assets of the Scheme. If the liabilities exceed assets there is a buy-out debt.
The leaving employer’s share of the buy-out debt is the proportion of the Scheme’s liability attributable to employment with the leaving employer compared to the total amount of the Scheme’s liabilities (relating to employment with all the currently participating employers). The leaving employer’s debt therefore includes a share of any ‘orphan’ liabilities in respect of previously participating employers. The amount of the debt therefore depends on many factors including total Scheme liabilities, Scheme investment performance, the liabilities in respect of current and former employees of the employer, financial conditions at the time of the cessation event and the insurance buy-out market. The amounts of debt can therefore be volatile over time.
The RSPCA, Liverpool Branch has been notified by the Pensions Trust of the estimated employer debt on withdrawal from the Scheme based on the financial position of the Scheme as at 30 September 2019. As of this date the estimated employer debt for the RSPCA, Liverpool Branch was £1,016,749.
The RSPCA Liverpool Branch participates in the scheme, a multi-employer scheme which provides benefits to some 102 non-associated employers. The scheme is a defined benefit scheme in the UK. It is not possible for the charity to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.
The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.
19
ROYAL SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS, LIVERPOOL BRANCH
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2021
14. PENSIONS (Continued)
The scheme is classified as a 'last-man standing arrangement'. Therefore the charity is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.
To eliminate the funding shortfall revealed by the 2017 Actuarial Valuation, the Trustees and the participating employers have agreed that additional contributions will be paid, in combination from all employers, to the scheme as follows
Deficit contributions
From 1 April 2019 to 30 September £1,404,638 per annum (payable monthly and 2026: increasing by 3% each on 1st April) From 1 April 2019 to 30 September 2027: £136,701 per annum (payable monthly and increasing by 3% each on 1st April)
The contributions to 30 September 2027 are in respect of those employers that have agreed concessions (both past and present) with the Trustee.
The recovery plan contributions are allocated to each participating employer in line with their estimated share of the scheme liabilities.
Where the scheme is in deficit and where the charity has agreed to a deficit funding arrangement the charity recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.
Subsequent to the year end the charity paid a settlement of £608,978 to withdraw from the scheme. This amount has been included in these accounts as a financial liability.
20
ROYAL SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS, LIVERPOOL BRANCH
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2021
15. COMMITMENTS UNDER OPERATING LEASES
At 31 December 2021 the charity had annual commitments under non-cancellable operating leases as set out below.
| 2021 | 2020 | |||
|---|---|---|---|---|
| Land and | Other |
Land and | Other | |
| buildings | items |
buildings |
items | |
| £ |
£ | £ | £ | |
| Operating leases which expire: | ||||
| Within 1 year | - | - | - | - |
| Within 2 to 5 years | - | - | - | - |
| After more than 5 years | - | - | - | - |
| ---------------------------- | ----------------------- | ---------------------------- | ----------------------- | |
| - | - | - | - | |
| ============ | ========== | ============ | ========== |
During the year operating lease expenditure totalled £0 (2020 - £0).
16. ANALYSIS OF NET ASSETS IN UNRESTRICTED FUNDS
| Investments | Tangible | fixed assets Other net liabilities |
fixed assets Other net liabilities |
Total | |
|---|---|---|---|---|---|
| £ | £ | £ | £ | ||
| Unrestricted funds | 1,070,725 | 2,442 | (314,614) | 758,553 | |
| =================== | =================== | =================== | =============== | ||
| ANALYSIS OF NET | ASSETS IN RESTRICTED FUNDS | ||||
| Investments Tangible fixed |
Other net |
||||
| assets | assets | Total | |||
| £ | £ | £ | £ | ||
| Restricted funds | 1,726,240 | - | 1,096,406 | 2,822,646 | |
| =================== | =============== | =================== | =================== |
17. ANALYSIS OF NET ASSETS IN RESTRICTED FUNDS
This Restricted Fund represents grants made by RSPCA Headquarters in Horsham and amounted from Support Adoption for Pets, towards the re-development of the facilities at Halewood Animal Centre, less amounts subsequently written off following the sale of the Halewood Animal Centre a proportion of the proceeds was allocated to the Restricted Fund.
21
ROYAL SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS, LIVERPOOL BRANCH
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2021
18. FINANCIAL INSTRUMENTS
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Carrying amount of financial assets | ||
| Debt instruments measured at amortised cost | 1,250,092 | 3,235 |
| Equity instruments measured at cost less impairment | 2,796,965 | 50,449 |
| -------------------------------------------- | -------------------------------------------- | |
| Carrying amount of financial liabilities | ||
| Measured at amortised cost | 7,440 | 1,045,058 |
| -------------------------------------------- | -------------------------------------------- |
22