## **ROYAL SOCIETY FOR THE PREVENTION OF CRUELTY TO ANIMALS (RSPCA) ROCHDALE BRANCH**
## **FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 DECEMBER 2022**
**Registered Charity Number 232257**
## **RSPCA ROCHDALE BRANCH**
## **Annual report and financial statements for the year ended 31 December 2022**
## **Contents**
## **Page:**
|1-6|Report of the trustees|
|---|---|
|7|Independent examiner’s report|
|8|Statement of financial activities|
|9|Balance sheet|
|10|Cash flow statement|
|11-20|Notes forming part of the financial statements|
## **Trustees**
|**Trustees **|||
|---|---|---|
|Mr David Canavan|Chair||
|Ms Jackie Poke|Treasurer||
|Mr Jon Muff|Trustee||
|Mrs Jeannette Canavan|Secretary||
|Mrs Elizabeth Hyland|Trustee||
|Mrs Tracey Jolly|Trustee|(resigned 15 May 2022)|
|Ms June Irving|Trustee||
|Ms Joanne Crane|Regional Board||
|Mr Mark Jolly|Trustee|(resigned 15 May 2022)|
|Mr Carl Crane|Trustee||
|Mrs Lauren Taylor|Trustee|(Appointed 26 May 2022)|
## **Branch address**
1 Redcross Street, Rochdale, Lancashire, OL12 0NZ
## **Registered charity number**
232257
## **Accountants and independent examiner**
Ninth Floor, Landmark, St Peter's Square, 1 Oxford Street, Manchester, M1 4PB
## **Bankers**
NatWest Bank PLC, Town Hall Square, Rochdale, Lancashire
## **Solicitors**
AST Hampsons, 128 Yorkshire Street, Rochdale, OL16 1LA
**RSPCA ROCHDALE BRANCH**
## **Report of the trustees for the year ended 31 December 2022**
The trustees present their report and financial statements for the year ended 31 December 2022. The charity is registered, No. 232257, with the Charity Commission. The RSPCA is a charity incorporated by the RSPCA Act 1932.The Act authorizes a branch network. Each branch is an unincorporated association registered as an independent charity. The governing document is the RSPCA Branch Rules. Each branch has a Board of Trustees all of whom must be a member of the RSPCA.
## **Constitution, objects and policies**
The charity exists to promote animal welfare, to support the RSPCA Inspectorate and to prevent cruelty to animals. It provides temporary accommodation and operates a rehoming service for dogs, cats and miscellaneous small domestic animals. It operates as a separate charity but is required to adhere to the rules and regulations of the National Society. It accepts the guidance of the National Society.
## **Appointment of trustees**
The trustees who served during the year were:
|Mr David Canavan|Chair||
|---|---|---|
|Ms Jackie Poke|Treasurer||
|Mr Jon Muff|Trustee||
|Mrs Jeannette Canavan|Secretary||
|Mrs Elizabeth Hyland|Trustee||
|Mrs Tracey Jolly|Trustee|(resigned 15 May 2022)|
|Ms June Irving|Trustee||
|Ms Joanne Crane|Regional Board||
|Mr Mark Jolly|Trustee|(resigned 15 May 2022)|
|Mr Carl Crane|Trustee||
|Mrs Lauren Taylor|Trustee|(Appointed 26 May 2022)|
New trustees are required to have a minimum three months RSPCA membership and can be nominated by two Branch members of three months standing. They are elected by a simple majority vote for a period of twelve months at the Annual General Meeting. Each new trustee is given an induction course and appropriate training to enable them to undertake their role properly.
The Board needs to consist of a minimum of seven and a maximum of fourteen trustees.
The trustees have the power to co-opt up to three further trustees.
The Board of Trustees manages the affairs of the Branch. Three senior staff have been appointed to form a management team and have individual responsibility for Financial Management and Administration, Fundraising and Income Generation and Animal Centre and Animal Welfare. The managers report to the Board of Trustees through a single trustee who has line management responsibility.
## **Annual and financial review**
## **Chair’s Report to Members 2022**
The RSPCA Rochdale & District Branch is an unincorporated charitable association and is an autonomous branch of the national RSPCA, carrying out animal welfare work in the areas of Rochdale, Heywood, Middleton, Littleborough, Milnrow, Whitworth and Todmorden.
An important part of our mission is to promote kindness and to prevent or suppress cruelty to animals by all lawful means, and we work hard to provide proper care for those animals who have been mistreated or abandoned.
In presenting this report I shall indicate the key areas of trustee focus within the overall operation and development of RSPCA Rochdale & District. During 2022 the trustees met regularly to consider operating issues, receive reports and determine action. I would wish to convey my thanks to our trustees for their commitment to the branch and animal welfare. It has been an important and challenging year, during which trustees have been required to consider detailed and lengthy reports to enable them to have a strategic overview and to make key operational decisions. Day to day operational activity is the responsibility of our three senior managers who report to the Board of Trustees through a trustee delegated to undertake line management responsibility on behalf
1
**RSPCA ROCHDALE BRANCH**
## **Report of the trustees for the year ended 31 December 2022** _**(Continued)**_
behalf of the Trustees. Jackie Brooks deals with overall administration and finance, Shirley Mellor manages our charity shop portfolio together with our eBay and Facebook activity and Chan Taylor has responsibility for the management of our animal centre and animal welfare issues. During the year they have faced not only the normal challenges of a busy animal centre but also the need to transfer operations out of a centre which has been the focus of activity for over 80 years into a completely new location. They form an excellent team and the Board of Trustees is grateful for their dedication and support during the year.
An agreement with Rochdale Borough Council and Rochdale Boroughwide Housing was reached in March 2021. This involved the sale of the existing RSPCA site and a relocation to Hollingworth Lake Visitor Centre. It was a very complex agreement involving the redesign and extension of the existing visitor centre to enable it to be licenced as an RSPCA animal centre. The existing steel framed building was in poor condition and required complete reconstruction of the internal walls, a rewire and new plumbing and heating systems. It was also found that the external drainage had to be completely replaced and a new electrical supply from the main supply at Lakebank had to be installed. Although this involved very major construction work the trustees considered that the location presented an excellent opportunity to establish an RSPCA centre with the potential to provide support to animal welfare in accordance with the principles of the RSPCA long into the future. The location at Redcross Street had become increasingly difficult as the surrounding area had become subject to a serious decline. In comparison Hollingworth Lake is a very popular tourist location on the edge of the Pennines. It is recognised as among the ten most popular country parks in the UK with large visitor numbers from across Greater Manchester and beyond. Following the extensive negotiations from January 2020, a unanimous vote of support from Rochdale Borough Council in July 2020 and the signing of agreements in March 2021, the Trustees set July 2022 as the target moving date.
The Trustees engaged Nigel Longshaw of A J Cocker Associates as the professional architect to prepare the plans, oversee the work and provide staged payments approval against completion certificates. The main contractor appointed by the trustees was H Bell Ltd, a large local building contractor with experience of undertaking building work for the local authority and NHS in the public sector and for numerous private sector clients. The services of Peter Taylor, senior partner in AST Hampsons solicitors, and Steven Barton of Barton Kendal were extended to provide the trustees with specialist input. I would wish to place on record my gratitude to these three professionals for their critical contribution to the development of the new centre.
During the year the strategic management of the Board of Trustees has been focussed around three key areas;
## 1. Day to day activity.
The Branch has agreed that a key animal welfare focus is support for the RSPCA Inspectorate. This involves receiving abused or abandoned animals and providing care and rehabilitation leading to successful rehoming. Increasingly wildlife support for the inspectorate has become an important aspect of the work of the branch. During the year the branch received 304 domestic animals and 279 wildlife casualties. Almost 600 animals receiving our care was impressive considering there was a need to wind down numbers towards the end of the year to facilitate the move to a new centre.
Following the difficulties associated with Covid, the charity shop activity continued to be rebuilt and income streams such as eBay and Facebook continue to be income generators. A significant change in shopping habits has created a challenging environment for this important area of branch work.
## 2. Development of the new centre.
Following an indication that Rochdale Borough Council required the Redcross Street site for new affordable housing, negotiations identified Hollingworth Lake Visitor Centre as a potential new location for the RSPCA animal centre. Plans were prepared to provide suitable accommodation for animal care, an adjacent café and a quality meeting room. The animal facilities were designed to comply with current RSPCA standards for animal care in order to secure RSPCA licencing. Following detailed negotiations with Rochdale Borough Council the footprint of the site was agreed and a 125-year lease with a peppercorn rent was signed by the parties. H Bell Ltd was selected as the main contractor based upon a tender of £1.3m to complete the work. The trustees received regular detailed progress reports from Nigel Longshaw and Steve Barton, who both regularly attended trustee meetings to present the reports and respond to any questions. Given the size of the project and the limited funds available, the trustees considered that it was critical to be fully aware of expenditure as the project progressed. It was agreed that payments would be based upon valuation certificates recommended by the architect and specifically approved for payment by the Branch Treasurer
2
**RSPCA ROCHDALE BRANCH**
## **Report of the trustees for the year ended 31 December 2022** _**(Continued)**_
and an experienced trustee who holds a senior appointment with Balfour Beatty. In the course of the contract, issues arose which had not been anticipated and this caused the contract completion date to be extended.
The headlease requires the RSPCA to provide public toilets and to replicate the café facilities with disabled access. The operating cost of these facilities will be covered by Rochdale Borough Council. It was considered by the trustees that these facilities would be very attractive to the public and enhance the ability of the Branch to attract public support and income to the centre. A large screen was to be installed in the café to present the work of the RSPCA and to present pictures and details of animals available for adoption. A high-quality meeting room was also part of the development to provide meeting facilities for the trustees and to have the potential to be hired for corporate use.
Following a successful inspection visit and the issuing of an operating licence a decision was taken to move operations to the new site on the 16th December 2022. In practice this date was altered to the 6th January 2023.
## 3. Move to Hollingworth Lake Animal Centre
To reduce overall costs the trustees decided to use as much of the equipment and materials as possible from the old centre and where this was not possible to source specific items directly. It was a major logistical challenge to move sufficient materials to enable all our animals to be moved over a single day. Staff accommodation was complete including an overnight flat and fully operational security and internet systems. Many items were moved over the weeks prior to the 6th January which contributed to allowing the animals to be moved on the 6th and the new centre to commence operations on the 7th. On behalf of the trustees, I would wish to convey our gratitude to our excellent team of staff who completed a very difficult operation with commitment and professionalism. The trustees would also like to thank the RSPCA inspectors who gave enormous assistance over the 6th and 7th of January.
The animal centre at Redcross Street has also been the base for the charity shop organisation and our eBay development. A significant level of donated goods are stored there and are evaluated and sorted prior to sale. The new animal centre does not have the capacity to provide room for the storage and sorting process. A new base has to be found for this important aspect of branch operation. There is no doubt that over the years our charity shop income has made a critical contribution to our animal welfare work. Shirley has always managed the charity shop processes well and has added eBay, Facebook, Vinted and other online sites as an income source with the potential for expansion. Although an extension of accommodation at Redcross Street has been negotiated to mid-2023 the trustees are anxious to find suitable premises as near to the new animal centre as possible to allow Shirley and her team to remain an integrated part of branch operation.
## **David Canavan Trustee and Chair**
RSPCA Rochdale & District Branch
3
**RSPCA ROCHDALE BRANCH**
## **Report of the trustees for the year ended 31 December 2022** _**(Continued)**_
## **Extracts from the Greater Manchester Inspectorate Group Annual Report for 2022 Chief Inspector Nina Small**
## Summary
2022 saw the arrival of a new Chief Inspector. The team were back to resuming normal duties after the lock down measures had been removed.
It has been another challenging year with the cost of living crisis impacting on pet owners in the region, not to mention the influx of dogs during lock down which saw an increase in sign overs of pets.
The lack of space for animals has been a huge problem in the region and we have had to push back as much as possible on owners wanting to rehome their animals. We have lots of animals in private boarding establishments around the group and some of these animals are sadly spending months there.
The team have also had to contend with the devastating effects of Avian Flu and the impact it has had on the rehabilitation and treatment of birds.
## Case Investigations
Manchester is one of the busiest groups in the country and that means sadly more cruelty case investigations to deal with. In 2022 we investigated just over 100 cases.
So far over 30 have been dealt with via a prosecution, approximately 21 have been dealt with by way of a caution, approximately 30 were closed once an investigation was completed and another 20 are still waiting for a decision.
Inspector Catherine Byrnes secured a successful conviction against a cat owner from Oldham that poured boiling water onto his cat called Shadow. The case made it into the Manchester Evening news and the owner received a 10 year ban from keeping animals, an 18 week suspended sentence, fined £260 and ordered to pay £260 towards costs. The cat was rehomed to one of the vet nurses that helped him with treatment.
(Shadow was cared for and nursed back to health at Rochdale Animal Centre over several months).
We are lucky to have a large number of branches in our area that are very supportive of our inspectorate group. Without this help and support we wouldn't be able to rescue the many animals that our officers rescue daily.
On behalf of the Manchester group thank you for all your help and support over 2022.
## **Financial review**
There was net income for the year of £117,129 (2021: £1,764,317) with retained funds of £2,049,825 (2021: £1,932,696) at the year end. The decrease in incoming resources reflects the fact that an amount of £1,800,000 was received from Rochdale Boroughwide Housing in the prior year as compensation for the site from which the charity has operated and now departed. A further amount of £200,000 has been recognised in the current year in this regard, which will be a future contribution towards the running of the site for the next 5 years. Excluding this, the income profile was relatively consistent. Fixed assets have increased to £1,427,684 as the new site the branch is moving to is being developed. Thus, expenditure is reflected in a reduction in the cash at bank.
4
## **RSPCA ROCHDALE BRANCH**
## **Report of the trustees for the year ended 31 December 2022** _**(Continued)**_
## **Reserves policy**
The trustees aim to secure sufficient regular income and a reserve balance to support the animal centre facilities.
The financial statements have been prepared on the going concern basis. The trustees have considered the current and future financial performance and position of the charity and in particular have initiatives in place to widen income generating streams and reduce expenditure as required. The national society views the Rochdale Animal Centre as an important facility for animal welfare.
## **Public benefit**
The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Trust’s aims and objectives and in planning future activities and setting the grant making policy for the year.
## **Future developments**
The branch is currently refining its Income Generation Strategy and as part of this proposing to build closer links with the Community through improved volunteer facilities. In addition, it is hoped to increase dog care facilities and improve wildlife provision.
It is anticipated that the new site at Hollingworth Lake will create new opportunities for the charity in the future.
## **Risk management and income generation policy**
Measures are in place to minimise any risk resulting in loss of income. We consult independent advisers and the business unit of our bank. We consistently review our income generation opportunities and have implemented stepped income levels for short to medium and medium to long-term needs through regularly targeted and monitored sources, such as shops, committed giving and collection boxes.
Internal risks are minimised by the implementation of procedures for authorisation of all transactions and projects, and to ensure consistent quality of delivery for all operational aspects of the RSPCA Rochdale and District Branch. All procedures are regularly reviewed to ensure they are efficient and appropriate to our needs.
## **Investment policy**
The policy is to retain some long-term investments where possible, but to have a consistently managed portfolio at the bank which is accessible for operational cash flow in the short term at the best interest rate available to us. The operational current account is linked directly to the Business Reserve account and only the appropriate operational level is maintained without interest, any amount over this sum being automatically transferred to the Reserve account on a daily basis.
## **Market value of land and buildings**
The premises have not been the subject of an external valuation and are included in the accounts at cost.
5
RSPCA ROCHDALE BRANCH
Report of th• trust9 for th• y•ar gndgd 31 Dec•mbar 2022 (Continu8d)
statement of Truste. responsibilitle$
The charity tr¢Jslees are responsible for preparing a trustees, annual report and finoncial statements in accordance
with applicable law and United Kingdom Accounting St8ndar¢Js (United Kingdom Generally Accepted Accounting
Pr8clice)-
The law applicab lo charities in England and Wales requires the charity trustees to Pfepare financial statements
for each year which give a true and fair view of the state of affairs of the charity and of the incoming resources and
application of resources. of the Charity for that period. In pr8paring the firiancial slalements. the trustees arè
required to..
select suitable accounting policies and th¢n apply them consistenUy.'
observe the methods and principles in the appliGable Charities SORP.,
make judgements and estimates that are reasonable and prudent.,
state wh&thor applicable accounting standards havg been followed, subject to any material departures
that must be disclosed and explained ITr the financial statements.,
prepare the financial statements on the going concern basis unless it is inappropr¢ale to presume thal the
charity w551 conllnue In buslness.
The tnjstees are responsible for keeping proper accounting re¢ortJs that discbose with reasonabte accuracy at any
time the finanoal position of the charity and to enable them lo ensure that the financial slaternents comply with the
Charities Act 2011, the applicable Charits'es (Accounts and Reportsl Regulations, and the provisions of the Trust
deod. They are 81s0 responsible for safeguarding the assets of the charity and ltsking reasonable steps for the
prevention and deteCtn of fraud and other irregularities.
The trustees are responsibte for the maintenance and integrity of the charity arbd financial information induded on
the charity's website in accordance with legis18tion in the United Kingdom governing the preparation and
dissemination of linancial statfrments.
Approval
Mr D Canavan
Chair
## **RSPCA ROCHDALE BRANCH**
## **Independent Examiner’s Report to the Trustees of RSPCA Rochdale Branch**
I report to the trustees on my examination of the accounts of RSPCA Rochdale Branch (‘the charity’) for the year ended 31 December 2022, which are set out on pages 8 to 20.
## **Responsibilities and basis of report**
As the trustees of the charity, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the 2011 Act’).
I report in respect of my examination of the charity’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 2011 Act.
An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the accounts. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently, I express no opinion as to whether the accounts present a ‘true and fair view’ and my report is limited to those specific matters set out in the independent examiner’s statement.
## **Independent examiner’s statement**
I confirm that I am qualified to undertake the examination because I am a member of The Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me reasonable cause to believe that in any material respect:
1. accounting records were not kept in respect of the charity as required by section 130 of the 2011 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.
Signed:
## Name: **John Guest**
Name of applicable listed body: **The Institute of Chartered Accountants in England and Wales** Relevant professional qualification or membership of professional body: **Chartered Accountant**
## **ON BEHALF OF RSM UK TAX AND ACCOUNTING LIMITED**
Chartered Accountants Ninth Floor, Landmark, St Peter's Square, 1 Oxford Street, Manchester, M1 4PB Date: ………………… 29/09/23
7
## **RSPCA ROCHDALE BRANCH**
## **Statement of financial activities for the year ended 31 December 2022**
|||**Restricted**|**Unrestricted**|||
|---|---|---|---|---|---|
||**Note**|**funds**|**funds**|**2022**|**2021**|
||||||**as restated**|
|||**£**|**£**|**£**|**£**|
|**Income and endowments**||||||
|**from:**||||||
|Donations and legacies|3|-|46,691|46,691|21,943|
|Charitable activities|6|-|5,361|5,361|17,025|
|Other trading activities|4|-|500,820|500,820|366,839|
|Investment income|5|-|1,125|1,125|129|
|Other receipts|7|-|296,855|296,855|1,973,630|
|||–––––––|––––––––|––––––––|––––––––|
|**Total**||-|850,852|850,852|2,379,566|
|||–––––––|––––––––|––––––––|––––––––|
|**Expenditure on:**||||||
|Raising funds|8|-|460,472|460,472|341,820|
|Charitable activities|8|-|273,251|273,251|273,429|
|||–––––––|––––––––|––––––––|––––––––|
|**Total**||-|733,723|733,723|615,249|
|||–––––––|––––––––|––––––––|––––––––|
|**Net incoming resources before transfers**||-|117,129|117,129|1,764,317|
|||–––––––|––––––––|––––––––|––––––––|
|Transfers||(2,500)|2,500|-|-|
|||–––––––|––––––––|––––––––|––––––––|
|**Net movement in funds**||(2,500)|119,629|117,129|1,764,317|
|**Reconciliation of funds:**||||||
|Total funds brought forward||2,500|1,930,196|1,932,696|168,379|
|||–––––––|––––––––|––––––––|––––––––|
|**Total funds carried forward**||-|2,049,825|2,049,825|1,932,696|
|||=======|========|========|========|
There were no gains or losses other than those reported above.
All of the above amounts relate to continuing activities.
The notes on pages 11 to 20 form part of these financial statements.
8
RSPCA ROCHDALE BRANCH
Balanco shegt at 31 December 2022
Note
2022
2021
Flxed assets
Tangible assets
11
1,427,684
660,999
Current assets
Stocks
Debtors
Cash al bank
12
13
2,664
315,159
397,098
3,000
98,981
1.501.679
714.921
1.603.660
Creditors: amounts falling due
within one year
14
192.7801
1331,9631
Not current a$set$
622,141
1.271.697
Total assets1¥55 curront Ilabllltles
2.049,825
1,932,696
Net assets
2.049.825
1,932.696
Incomè funds
Unrestricted funds
Restricted funds
15
2,049.825
1,930,196
2,500
Total funds
2.049.825
1.932.696
The financial slalements on pages 8 10 20 were approved and authorised for issue by Ihe Tnjstees on ...
D Canavan
Chalr
Trusteo
J Poke
Treasurer
Trustee
The notes on pages 11 to 20 form part of these financial slalemenls.
## **RSPCA ROCHDALE BRANCH**
## **Statement of Cash flows for the year ended 31 December 2022**
|**Note**
**Cash flows from operating activities: Net cash (used in)/**
**provided by operating activities**
**19**
**Cash flows from investing activities**
Purchase of tangible fixed assets
Interest received
**Net cash used in investing activities**
**Change in cash and cash equivalents in the year**
**Cash and cash equivalents at 1 January 2022**
**Cash and cash equivalents at 31 December 2022**
**Represented by**
Cash at bank and in hand||
|---|---|
10
## **RSPCA ROCHDALE BRANCH**
## **Notes forming part of the financial statements for the year ended 31 December 2022**
## **1 Accounting policies**
## _**Basis of accounting**_
The financial statements have been prepared in accordance with 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 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The RSPCA Rochdale Branch meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
## _**Going concern**_
The financial statements have been prepared on the going concern basis. The trustees have considered the current and future financial performance and position of the charity and have initiatives in place to widen income generating streams and reduce expenditure as required. The national society views the Rochdale Animal Centre as an important facility for animal welfare. As charity shops have opened back up following the pandemic, this has seen an increase of income and the compensation received in the prior year saw a large increase in cash reserves and net assets. Due to this the trustees have prepared the financial statements on a going concern basis.
## _**Stocks**_
Stocks are stated at the lower of cost or net realisable value. The charity receives a considerable amount of donated goods for resale through its charity shop.
## _**Incoming resources**_
All incoming resources are recognised once the charity has entitlement to the resources, it is certain that the resources will be received and the monetary value of incoming resources can be measured with sufficient reliability.
Income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
Income from charity shops and internet sites are included when receivable.
Income from grants, donations, legacies and other similar incoming resources are included in the year in which they are receivable subject to the terms for recognition of income as set out in the SORP being satisfied.
## _**Resources expended**_
Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to that category. The costs of generating funds in relation to charitable activities include all those resources incurred by the charity in undertaking its work to meet those charitable activities. Such costs include the direct costs of the charitable activity together with those support costs incurred to enable those activities to be undertaken.
11
## **RSPCA ROCHDALE BRANCH**
## **Notes forming part of the financial statements for the year ended 31 December 2022** _**(Continued)**_
## **1 Accounting policies** _**(continued)**_
Governance costs include the costs of arrangements which relate to the general running of the charity as opposed to the direct management functions inherent in generating funds.
## _**Irrecoverable VAT**_
Irrecoverable VAT is charged as a cost to the SOFA.
## _**Fund accounting**_
Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity.
Restricted funds are funds subject to specific restrictive conditions imposed by donors. The permitted use of the restricted funds is set out in the notes to the financial statements.
Designated funds comprise of unrestricted funds which have been set aside for specific purposes. The intended use of any designated funds is set out in the notes to the financial statements.
## _**Tangible fixed assets and depreciation**_
Tangible fixed assets are included at cost. Depreciation is provided to write off the costs less estimated residual values, of all fixed assets, except freehold premises, over their expected useful lives. It is calculated at the following rates:
Motor vehicles - 25% straight line Office equipment - 15% straight line Improvements to property - 5% straight line Animal accommodation - 15% straight line Lease improvements, fixtures & fittings - 10% straight line
Long leasehold premises are considered to have a very long useful life and are therefore not depreciated and depreciation would not be material to these financial statements.
No depreciation is provided on assets under construction until they are brought into use.
## _**Operating lease agreements**_
Rentals payable under operating leases are charged in the profit and loss account on a straight-line basis over the lease term.
## _**Donated goods and voluntary labour**_
The charity received donated goods for resale through its charity shops. The charity is also in benefit from the many hours of voluntary labour donated by its supporters in relation to running the charity shops, fundraising and administration. The value of these goods and services has not been evaluated.
## _**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, in full, to all of its financial instruments.
Financial assets and financial liabilities are recognised when the Charity becomes a party to the contractual provisions of the instrument and are offset only when the Charity currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
## _**Financial assets**_
Other debtors which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses.
12
## **RSPCA ROCHDALE BRANCH**
## **Notes forming part of the financial statements for the year ended 31 December 2022** _**(Continued)**_
## _**Financial liabilities**_
Financial instruments are classified as liabilities according to the substance of the contractual arrangements entered into.
Other creditors (including accruals) payable within one year that do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled.
## _**Prior period adjustment**_
During the period the categorisation of income relating to the compensation for site relocation was reconsidered and the Trustees have determined that this income would be more appropriately categorised as other receipts. This has therefore been reallocated from investment income to other receipts in the prior period. The amendment has no effect on reserves.
## **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 on-going 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.
No critical accounting estimates and judgments have been made in preparing these financial statements.
## **3 Donations and legacies**
|**Unrestricted**
**funds**
**£**
Donations and gifts
16,735
Legacies
29,956
46,691
**4**
**Other trading activities**
**Unrestricted**
**funds**
**£**
Shop income-
Rochdale
55,277
Rochdale (2)
32,823
Middleton
78,155
Littleborough
51,969
Heywood
52,732
Milnrow
35,862
Todmorden
55,431
Whitworth
61,765
Animal centre shop
3,112
Branch fundraising
14,774
Internet sales
58,920
500,820|**Restricted**
**funds**
**£**
-
-
-
**Restricted**
**funds**
**£**
-
-
-
-
-
-
-
-
-
-
-
-|**Total**
**2022**
**£**
16,735
29,956
46,691
**Total**
**2022**
**£**
55,277
32,823
78,155
51,969
52,732
35,862
55,431
61,765
3,112
14,774
58,920
500,820|**Total**
**2021**
**£**
21,943
-
21,943
**Total**
**2021**
**£**
35,099
21,127
55,473
34,911
27,229
21,777
49,436
33,884
4,523
30,304
53,076
366,839|
|---|---|---|---|
Shop income of £Nil (2021: £Nil) was included in restricted funds.
13
## **RSPCA ROCHDALE BRANCH**
## **Notes forming part of the financial statements for the year ended 31 December 2022** _**(Continued)**_
|**5**
**Investment income**
**Unrestricted**
**funds**
**£**
Bank account interest
1,125
1,125|**Restricted**
**funds**
**£**
-
-|**Total**
**2022**
**£**
1,125
1,125|**Total**
**2021**
**As restated**
**£**
129
129|
|---|---|---|---|
Bank account interest and investment income of £Nil (2021: £Nil) were included in restricted funds.
|**6**
**Charitable activities**
**Unrestricted**
**funds**
**£**
Adoptions etc.
5,361
5,361|**Restricted**
**funds**
**£**
-
-|**Total**
**2022**
**£**
5,361
5,361|**Total**
**2021**
**£**
17,025
17,025|
|---|---|---|---|
Adoptions etc. of £Nil (2021: £Nil) were included in restricted funds.
|**7**
**Other receipts**
**Unrestricted**
**funds**
**£**
Job retention scheme
491
Pet insurance
192
Headquarter subscriptions
142
Business grant income
11,030
Compensation for site relocation
285,000
296,855|**Restricted**
**funds**
**£**
-
-
-
-
-|**Total**
**2022**
**£**
491
192
142
11,030
285,000
296,855|**Total**
**2021**
**As restated**
**£**
59,723
272
351
113,284
1,800,000
1,973,630|
|---|---|---|---|
Other receipts of £Nil (2021: £Nil) were included in restricted funds.
14
## **RSPCA ROCHDALE BRANCH**
## **Notes forming part of the financial statements for the year ended 31 December 2022** _**(Continued)**_
|**8**|**Expenditure**|||||||
|---|---|---|---|---|---|---|---|
||||||**Activities for**|**Unrestricted**||
|||**Basis of**|**Governance**|**Charitable**|**generating**|**Total**|**Total**|
|||**allocation**|**costs**|**activities**|**funds**|**2022**|**2021**|
||||**£**|**£**|**£**|**£**|**£**|
||**Costs directly allocated to activities**|||||||
||Kennels, cattery, neutering, vet|||||||
||fees and other direct costs|Direct|-|61,434|5,627|67,061|47,561|
||Advertising|Direct|-|519|742|1,261|365|
||Salaries and wages|Staff Time|-|170,083|216,043|386,126|361,855|
||Office costs|Direct|-|16,572|109,185|125,757|114,093|
||Motor and travelling expenses|Direct|-|11,247|1,371|12,618|16,052|
||Independent Examination and Accountancy|Usage|9,569|-|-|9,569|6,500|
||Governance costs|Usage|9,570|-|-|9,570|23,316|
||Irrecoverable VAT|Direct|-|-|24,097|24,097|-|
||**Support costs allocated to activities**|||||||
||Salaries and wages|Staff Time|-|3,647|18,236|21,883|21,758|
||Office costs|Usage|-|1,314|4,892|6,206|9,112|
||Bank charges|Usage|-|1,888|2,979|4,867|4,011|
||Depreciation|Usage|-|3,921|2,373|6,294|7,538|
||Disposal of fixed assets|Usage|-|-|50,509|50,509|-|
||Insurance|Usage|-|1,678|3,987|5,665|3,066|
||Sundry costs|Usage|-|948|1,292|2,240|22|
||||––––––––|––––––––|––––––––|––––––––|––––––––|
||||19,139|273,251|441,333|733,723|615,249|
||||========|========|========|========|========|
15
## **RSPCA ROCHDALE BRANCH**
## **Notes forming part of the financial statements for the year ended 31 December 2022** _**(Continued)**_
|**9**|**Net outgoing resources are stated after charging/(crediting):**|**2022**|**2021**|
|---|---|---|---|
|||**£**|**£**|
||Depreciation|6,294|7,538|
||Independent examiner fees|3,250|-|
||Auditor fees|-|8,000|
|||========|========|
|**10**|**Staff costs and trustees’ remuneration**|**2022**|**2021**|
|||**£**|**£**|
||Wages|374,274|354,800|
||Social security costs|23,133|19,520|
||Pension|10,583|9,293|
|||––––––––|––––––––|
|||407,990|383,613|
|||========|========|
||The average number of employees during the year was:|27|27|
|||======|======|
No employee received remuneration amounting to more than £60,000 (2021: £60,000) in either year.
No trustee expenses have been incurred in 2022 or 2021.
16
## **RSPCA ROCHDALE BRANCH**
**Notes forming part of the financial statements for the year ended 31 December 2022** _**(Continued)**_
|**11**|
**Tangible fixed assets**|||||||||
|---|---|---|---|---|---|---|---|---|---|
|||**Leasehold**|**Improve-**|**Long**|**Animal**|**Office**|**Motor**|**Assets under**|**Total**|
|||**improveme**|**ments to**|**leasehold**|**accomm-**|**equipment**|**vehicles**|**construction**||
|||**nts fixtures**|**property**|**premises**|**odation**|||||
|||**& fittings**||||||||
|||**£**|**£**|**£**|**£**|**£**|**£**|**£**|**£**|
|_Cost_||||||||||
||At 1 January 2022|93,205|610,693|20,000|94,127|14,182|8,500|601,581|1,442,288|
||Addition|-|-|-|-|392|-|823,096|823,488|
||Disposal|(93,205)|(610,693)|(20,000)|-|-|-|-|(723,898)|
||Transfer|-|1,424,677|-|-|-|-|(1,424,677)|-|
|||–––––––|–––––––|–––––––|–––––––|–––––––|–––––––|–––––––|––––––––|
||At 31 December 2022|-|1,424,677|-|94,127|14,574|8,500|-|1,541,878|
|||–––––––|–––––––|–––––––|–––––––|–––––––|–––––––|–––––––|––––––––|
|_Deprecation_||||||||||
||At 1 January 2022|88,345|580,279|-|92,064|12,569|8,032|-|781,289|
||Charge|1,711|3,054|-|450|611|468|-|6,294|
||Disposals|(90,056)|(583,333)|-|-|-|-|-|(673,389)|
|||–––––––|–––––––|–––––––|–––––––|–––––––|–––––––|–––––––|––––––––|
||At 31 December 2022|-|-|-|92,514|13,180|8,500|-|114,194|
|||–––––––|–––––––|–––––––|–––––––|–––––––|–––––––|–––––––|––––––––|
|_Net book value_||||||||||
||At 31 December 2022|-|1,424,677|-|1,613|1,394|-|-|1,427,684|
|||=======|=======|=======|=======|=======|=======|========|========|
||At 31 December 2021|4,860|30,414|20,000|2,062|1,613|468|601,581|660,999|
|||=======|=======|=======|=======|=======|=======|========|========|
All the closing net book values represent fixed assets used for direct charitable purposes.
17
## **RSPCA ROCHDALE BRANCH**
## **Notes forming part of the financial statements for the year ended 31 December 2022** _**(Continued)**_
|**12**|**Stocks**|**2022**|**2021**|
|---|---|---|---|
|||**£**|**£**|
||Finished goods held for resale|2,664|3,000|
|||=======|=======|
|**13**|**Debtors**|**2022**|**2021**|
|||**£**|**£**|
||Other debtors|13,920|73,158|
||Prepayments and accrued income|301,239|25,823|
|||–––––––|–––––––|
|||315,159|98,981|
|||=======|=======|
Included within accrued income is an amount of £200,000 which is due to the charity on the exit of the old premises. This amount will be received over a 5-year period. All other amounts shown under debtors fall due for payment within one year.
|**14**|**Creditors: amounts falling due within one year**|**2022**|**2021**|
|---|---|---|---|
|||**£**|**£**|
||Trade creditors|48,880|251,480|
||Other taxes and social security costs|4,257|4,236|
||Accruals and deferred income|39,643|76,247|
|||–––––––|–––––––|
|||92,780|331,963|
|||=======|=======|
|**15**|**Fund balances**||**Unrestricted**|**Unrestricted**||
|---|---|---|---|---|---|
|||**Restricted**|**Designated**|**General**|**Total**|
|||**£**|**£**|**£**|**£**|
||At 1 January 2022|2,500|-|1,930,196|1,932,696|
||Incoming resources|-|-|850,852|850,852|
||Resources expended|-|-|(733,723)|(733,723)|
||Transfer|(2,500)|-|2,500|-|
|||––––––––|–––––––|––––––––|––––––––|
||At 31 December 2022|-|-|2,049,825|2,049,825|
|||========|========|========|========|
Previously designated funds have been reallocated towards general expenditure in furtherance of the charity’s objectives.
18
## **RSPCA ROCHDALE BRANCH**
## **Notes forming part of the financial statements for the year ended 31 December 2022** _**(Continued)**_
|**16**|**Analysis of net assets between funds**|||**Unrestricted**||
|---|---|---|---|---|---|
|||**Restricted**|**Designated**|**General**|**Total**|
|||**£**|**£**|**£**|**£**|
||Fund balances at 31 December 2022|||||
||are represented by:|||||
||Tangible fixed assets|-|-|1,427,684|1,427,684|
||Current assets|-|-|714,921|714,921|
||Current liabilities|-|-|(92,780)|(92,780)|
|||–––––––|–––––––|––––––––|––––––––|
||Total net assets|-|-|2,049,825|2,049,825|
|||=======|========|=========|=========|
||**Analysis of net assets between funds**|||**Unrestricted**|**Unrestricted**|
|||**Restricted**|**Designated**|**General**|**Total**|
|||**£**|**£**|**£**|**£**|
||Fund balances at 31 December 2021|||||
||are represented by:|||||
||Tangible fixed assets|-|-|660,699|660,699|
||Current assets|2,500|-|1,601,160|1,603,660|
||Current liabilities|-|-|(331,963)|(331,963)|
|||–––––––|–––––––|––––––––|––––––––|
||Total net assets|2,500|-|1,930,196|1,932,696|
|||=======|========|=========|=========|
## **17 Trustee indemnity insurance**
The charity does not pay any indemnity insurance on behalf of the trustees.
## **18 Commitments under operating leases**
As at 31 December 2022 the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases as set out below:
|||**2022**||**2021**|
|---|---|---|---|---|
||**Land and**||**Land and**||
||**buildings**|**Other**|**buildings**|**Other**|
|Operating leases which expire:|**£**|**£**|**£**|**£**|
|Within one year|45,886|-|48,693|-|
|Between two and five years|-|-|10,500|-|
||–––––––|–––––––|––––––––|––––––––|
||45,886|-|59,193|-|
||=======|=======|========|========|
19
## **RSPCA ROCHDALE BRANCH**
## **Notes forming part of the financial statements for the year ended 31 December 2022** _**(Continued)**_
## **19 Cash generated from operations**
**Reconciliation of net (expenditure)/ income to net cash flow from operating activities**
||**2022**|**2021**|
|---|---|---|
||**£**|**£**|
|Net income for the year|117,129|1,764,317|
|Adjustments for:|||
|Investment income|(1,125)|(129)|
|Depreciation of tangible fixed assets|6,294|7,538|
|Loss on disposal of tangible fixed assets|50,509|-|
|Operating cash flows before movement in working capital|||
|Decrease in stock|336|528|
|(Increase) in debtors|(216,178)|(65,682)|
|(Decrease)/ increase in creditors|(239,183)|202,802|
||________|________|
|Net cash (used in)/provided by operating activities|(282,218)|1,909,374|
||**________**|**________**|
## **20 Related party transactions**
During the year and in the normal course of business on an arms length basis, the charity received sundry income from and incurred expenditure to RSPCA National Society.
The charity is constituted in accordance with the rules of the RSPCA National Society.
## **21 Ultimate controlling party**
The charity's ultimate controlling party is its board of trustees.
20
**RSPCA ROCHDALE BRANCH**
The following page does not form part of the statutory
financial statements of the charity
## **RSPCA ROCHDALE BRANCH**
## **Income and expenditure accounts for the year ended 31 December 2022**
||**Restricted**|**Unrestricted**|||
|---|---|---|---|---|
||**funds**|**funds**|**2022**|**2021**|
||**£**|**£**|**£**|**£**|
|**Income**|||||
|Legacies|-|29,956|29,956|-|
|Donations and gifts|-|16,735|16,735|21,943|
|Grants|-|-|-|-|
|Branch appeals and fundraising|-|14,774|14,774|30,304|
|Animal centre adoptions etc|-|5,361|5,361|17,025|
|Internet sales|-|58,920|58,920|53,076|
|- Charity shop (Rochdale)|-|55,277|55,277|35,099|
|- Charity shop (Rochdale 2)|-|32,823|32,823|21,127|
|- Charity shop (Rochdale 3)|-|-|-|-|
|- Charity shop (Middleton)|-|78,155|78,155|55,473|
|- Charity shop (Middleton 2)|-|-|-|-|
|- Charity shop (Littleborough)|-|51,969|51,969|34,911|
|- Charity shop (Heywood)|-|52,732|52,732|27,229|
|- Charity shop (Todmorden)|-|55,431|55,431|49,436|
|- Charity shop (Milnrow)|-|35,862|35,862|21,777|
|- Charity shop (Castleton)|-|-|-|-|
|- Charity shop (Whitworth)|-|61,765|61,765|33,884|
|- Animal Centre|-|3,112|3,112|4,523|
|- Bank interest and investment income|-|1,125|1,125|129|
|- Compensation for site relocation|-|285,000|285,000|1,800,000|
|- Sundry receipts|-|11,855|11,855|173,630|
||–––––––|––––––––|––––––––|––––––––|
|Total incoming resources|-|850,852|850,852|2,379,566|
||–––––––|––––––––|––––––––|––––––––|
|**Expenditure**|||||
|Total consumables|-|25,245|25,245|15,133|
|Wages and salaries|-|408,010|408,010|383,613|
|Rent, rates, water, heat and light|-|111,122|111,122|104,207|
|Insurance|-|5,665|5,665|3,066|
|Telephone|-|8,082|8,082|3,395|
|Repairs and renewals|-|6,206|6,206|9,112|
|Motor and travel expenses|-|12,618|12,618|16,052|
|Postage, printing and stationery|-|6,553|6,553|6,490|
|Advertising|-|1,261|1,261|365|
|Vet fees|-|30,150|30,150|22,195|
|Bank charges and interest|-|4,867|4,867|4,011|
|Loan interest|-|-|-|-|
|Legal and professional fees|-|9,570|9,570|23,316|
|Independent Examination and accountancy fees|-|9,569|9,569|6,500|
|Sundry expenses and cleaning|-|13,905|13,905|10,256|
|Depreciation|-|6,294|6,294|7,538|
|Profit on sale of fixed asset|-|50,509|50,509|-|
|Irrecoverable VAT|-|24,097|24,097|-|
||–––––––|––––––––|––––––––|–––––––|
|Total resources expended|-|733,723|733,723|615,249|
||–––––––|––––––––|––––––––|–––––––|
|**Net incoming resources**|-|117,129|117,129|1,764,317|
||=======|========|========|========|