## **RSPCA SOUTHPORT ORMSKIRK & DISTRICT BRANCH THE BRANCH TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021** ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** The Branch is an unincorporated charitable association and a separately registered charity to that of the national RSPCA (the Society), carrying out its direct animal welfare work in the areas of North Sefton and parts of West Lancashire. It operates as an autonomous branch subject to the RSPCA Rules for Branches (as updated). The Branch Committee Members are elected trustees. All new trustees are briefed on their responsibilities prior to their acceptance of the role. The Committee has the power to co-opt up to three persons (at any one time) to serve as Committee Members and may appoint new trustees to fill casual vacancies arising during the year. The trustees hold monthly meetings at which decisions are made. The day-to-day running of the animal centre and charity shop is delegated to the Branch Manager under the line management of the Branch Chair. ## **STATEMENT OF TRUSTEES RESPONSIBILITIES** Trustees are responsible for preparing the Report of the Trustees and the Financial Statements in accordance with applicable law and United Kingdom Accounting Practice. The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed 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 and of the incoming resources and application of resources, including income and expenditure for that period. In preparing those financial statements, the trustees are required to: - Select suitable accounting policies and apply them consistently - Observe the methods and principles in the Charity SORP - Make judgements and estimates that are reasonable and prudent - Prepare the financial statements on the ongoing concern basis unless it is inappropriate to presume that the Charity will continue in business The trustees are responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the Charity and which will enable them to ensure that the financial statements comply with applicable law, regulations and the trust deed. They are also responsible for safeguarding the assets of the Charity and for taking reasonable steps to ensure the prevention and detection of fraud and other irregularities. ## **Internal Controls** The Branch Committee has put in place effective internal financial control systems. These safeguard the assets of the Branch, ensure the maintenance of proper accounting records and provide reliable financial information for use by the Branch Treasurer and the Committee. The key features are: - i. A clear organisational and management structure with defined responsibility and accountability - ii. Proper control over income and expenditure - iii. Authorisation limits for the purchase of goods, services and other commitments - iv. A budgeting and forecasting system, coupled with monthly reviews against actual performance - v. The employment of an external accountant who provides all payroll and accounting activities ## **Risk Management** The trustees actively review the operational and financial risks that the Charity faces. The trustees consider that they have put in place appropriate policies, procedures and controls that will mitigate the identified risks and assist in maintaining the future financial viability of the Branch. The Branch utilises a Risk Management Framework to identify significant risks, for example: Our reliance upon legacies as a major source of income Loss of reputation, income or confidence through error, fraud or other actions of trustees or staff (Branch and national) Loss of income or capital through poor investment decisions or the effects of a recession on investments and potentially on income Insufficient number of trustees and volunteers to support the activities of the Branch Insufficient funds to continue to provide the determined level of service to the public and others Difficulties in recruiting and retaining staff and volunteers of the required standard to provide the determined level of service The Branch Committee keeps under regular review the Health and Safety requirements at both the animal centre and the charity shop. The Committee examines the accident book at each Committee Meeting and takes appropriate action with regard to all reported accidents. During 2021 there were no accidents requiring notification to the enforcing authority. The Branch maintains a Risk Management Framework, Trustees’ Code of Conduct and a Conflict of Interests Policy, together with a number of other management policies, which are reviewed annually. **OBJECTIVES AND ACTIVITIES** ## **Objectives, Aims and Public Benefit** The trustees have considered the Charity Commission guidance regarding public benefit and are satisfied that the Charity has met these requirements through its activities as described in this Report. Under the Charities Act 2011 the advancement of animal welfare is recognised as a distinct statutory charitable purpose. This legislation and the Animal Welfare Act 2006 indicate an acceptance by society that treating living creatures with compassion has a moral benefit for the public as a whole. The objects of the Branch are to promote kindness and to prevent or suppress cruelty to animals by all lawful means with particular reference to the area of operation of the Branch. The key aims of the Branch are to care for mistreated or abandoned animals and to find suitable new homes for them. Our policy to charge a reasonable adoption fee for animals aims to highlight the ongoing personal and financial commitment of pet ownership. It would not be in the best interests of animals to re-home them to those who could not afford them or reasonably meet the ongoing costs. The main activities of the Branch are the operation of the animal centre at New Cut Lane in Southport. The animals in our care receive veterinary treatment, vaccinations, flea and worm treatments and are neutered, micro-chipped and assessed before being re-homed. We support the RSPCA Inspectorate by taking in mistreated or abused animals. During the year 323 animals were admitted by the Branch (129 dogs, 194 cats). The Branch prioritised the intake of the most vulnerable animals rescued by the RSPCA inspectorate (86 % of total admissions). During the year 255 animals were rehomed (102 dogs, 153 cats). The Society's officers (as well as providing education, information and advice) rescue animals in distress and enforce laws against the mistreatment of animals in England and Wales by bringing prosecutions. This work is key to the prevention or suppression of cruelty' part of the RSPCA objects and promotes humane sentiments towards animals which involve moral benefit to humankind as a whole. We provide subsidised or free micro-chipping of owned animals. We provide limited subsidised neutering of companion animals and veterinary treatment for sick or injured animals for those people in the branch area on low incomes and in receipt of certain benefits. This work helps to control animal populations and benefits those on means tested benefits by giving them financial help to neuter and microchip their pets, thereby helping them to meet legal requirements and promoting responsible pet ownership. We offer pet care advice to the public and respond to enquiries about animals locally. The public benefits through the promotion of responsible pet ownership. ## **Volunteers** We provide volunteering opportunities for those who wish to support our work including in the branch charity shop and animal centre and fundraising at the Fun Dog Show, the Christmas Fair and at other events. This benefits local people by providing the opportunity to make a difference, find purpose, make friends, reduce isolation, connect with their community and strengthen their CVs to improve employment opportunities. Without these volunteers the Branch would not be able to undertake the amount of animal welfare currently achieved. The number of volunteers and the time devoted to the branch was very severely impacted by the Covid-19 pandemic. We were only able to open the charity shop for about 75% of the year. Similarly, volunteering at the animal centre was restricted. Despite this, during 2021 the Branch depended on the help of about 100 active volunteers, whose donation of their skills and time had a value worth several thousands of pounds. The trustees would like to thank the Branch staff and volunteers for their hard work and dedication throughout the year. ## **ACHIEVEMENT AND PERFORMANCE** ## **Charitable activities, Developments, Activities & Achievements in 2021** The Branch Committee continued to implement its agreed policies concerning the operation of the Branch. The Branch Manager’s report on page 10 gives more details of the number of animals passing through the animal centre. Covid-19 restrictions continued to impact on the activities of the Branch including the rehoming of animals, fundraising activities and the operation of the charity shop. The recruitment of volunteers and the work they were able to perform was also limited. Branch Committee Meetings were mainly held online using Google Meet. The staffing requirements of the Branch remained under review bearing in mind the use and capacity of the facilities and the Branch’s overall financial position. The Branch held an open day at the animal centre in September and a Christmas fair in December. These events raised £7,927. The Branch Manager continued to contribute a bi-weekly item to the local newspaper which helped to advertise long-stay dogs and cats in care. The Branch leasing agreement with Cats Protection (providing them with 10 cat pods) continued. In March, the Branch joined the Association of Dog and Cats Homes (ADCH). ## **FINANCIAL POLICIES AND REVIEW** ## **Reserves Policy** The Branch holds reserves in order that its animal welfare services are maintained should there be a reduction in incoming resources. General reserves are those funds that are freely available for general purposes and are uncommitted. The trustees have established a policy of holding a level of free reserves that will enable the Branch to ensure the continuity of activities and the ability to adjust, in a measured way, to any significant change in resources. This is a level equivalent to one and a half year’s total expenditure - currently this is of the order of £630,000. At 31 December 2021 the Branch had unrestricted free reserves of £423,200. ## **Investment policy and objectives** The trustees invest, until required, part of its capital and income not required for the immediate running of the Branch. The trustees, bearing in mind the level of cash holdings, the forecast requirements during 2021 for planned capital projects and the budgeted running costs of the animal centre, agreed to retain a portion of its reserves on deposit with the Royal Bank of Scotland and The Nationwide Building Society. Additionally, a portion of funds held are invested in a 1-year business bond with The Hampshire Trust Bank. The breakdown of the amounts invested is shown in the Notes to the Financial Statements. ## **Financial Review** The Statement of Financial Activity for the year is shown in the Notes to the Financial Statements together with the Audit Certificate. The total income received in the year 2021 was £363,300. Expenditure in the year was £420,200. There were realised and unrealised investment gains at the year-end of £900. The total net deficit for the year 2021 was £56,000 compared with a deficit of £181,200 in 2020. Legacies recorded as receivable in the Accounts for 2021 was £111,200 (£2,300 in 2020). The main fundraising activities of the Branch are animal adoptions, the charity shop, the animal centre shop and open days. The Branch also leases 10 cat pens to fellow animal charity Cats Protection. Although the trustees endeavour to reduce the Branch’s reliance on legacy income, we continue to be dependent on the receipt of legacies for both day-to-day running costs and for financing capital ## projects. The Branch makes full use of the Gift Aid Donation arrangements whereby donations made by income tax payers are increased by 25%. ## **FUTURE ACTIVITIES** To recruit new volunteers for the charity shop, for the animal centre and to support fundraising events. The Branch has a small number of dedicated animal fosterers and in 2022 we hope to increase their number. - i. To develop new fundraising activities and to seek out new funding streams and ways to realise savings. - ii. To hold volunteer evenings to thank our volunteers. - iii. To review monthly the financial resources and commitments of the branch and take corrective action when required. - iv. To continue the policy of offering animal accommodation to the RSPCA Inspectorate to the extent of at least 50% and other Society branches by agreement, - v. To communicate with Branch members, supporters and volunteers and to further develop the awareness of the Branch by way of newspaper articles, emails and social media. - vi. To continue to be involved in the regional and national activities of the RSPCA. - vii. To review on a regular basis the Health and Safety Risk Assessments for the New Cut Lane site and the charity shop. - viii. To continue to use the new Operating Theatre for the Greater Manchester Hospital veterinary surgeons. ## **APPROVAL OF THIS REPORT** This Report was recommended for approval on 16 May 2022 to be ratified at the AGM, and is signed on behalf of the Committee of Trustees by: Dr David West, Branch Chairman 16 May 2022 Draft Financial Ststements at 06 May 2¢722 at 13.'47=19 RSPCA SOUTHPORT, ORMSKIRK AND DISTRICT BRANCH STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 310ECEMBER 2021 Unrestricted Restricted funds funds 2021 J21 Total Unrestricted funds 2020 Ineome from.. Donabons and legaaes Charitsble activrt Other trading actNrtN Inveslmenls 152.X6 98.723 111.883 527 181,208 98,723 111,883 527 93,029 99,445 Totsl Income 3n,339 254,321 Raising funds 34,940 Charltable acti￿tt•S Animal Wèlfaré Animal Re-homing Welfare Assistan 253,731 1C6,078 25,477 261,731 1Ce,078 ,477 263,417 111,497 27,C Totsl &xpendlture 43J.226 428,226 437,020 Net gain￿(lo$SeSI on invethwrts 13 870 870 1,518 Net movement In funds (53.01n 155,017) I181,1￿) Fund balances at 1 January 2021 2.010.780 2,010,760 2,191,943 Fund balances at 31 December 2021 1,954,743 1,(m 1,955,743 2,010,760 The 5tatemtnt offinancsal aLknrtk•s indudès all gains and bjssès rwni58d in thè ￿ar. All inco￿￿ and expenditure derNe from continuing Draft Financial Ststements at 06 May 2¢722 at 13.'47=19 RSPCA SOUTHPORT, ORMSKIRK AND DISTRICT BRANCH BALANCE SHEET AS A T31 DECEMBER 2021 2020 Notes Flxed assets Tangible assets 14 1.531.587 1,569,ee Current assgts Stccks Debtors Inveslments Cash at bank and in hond 16 17 20,7 86,516 87, 274.L￿2 454,e86 Credltors- amounts falllng duewbthln one year 19 115,498) 113,6121 Net current assets 424.158 441,074 Totsl a$sÉts les$ Current Ilabllltl•s 1.955.743 2,010,7 Income funds Restricted funds Fixed asset funds Gantrral unrestrthj funds 1.531.587 423,156 1,S69,688 441,074 1.954.743 2,010,7 1.955.743 2,010,7 The fr'nanaal staterrnnts ￿re apFXOrf•(l ty the Trustees on ......................... Mr S Watson Trustee mrD￿￿t Trustee Draft Financial Ststements at 06 May 2¢722 at 13.'47=19 RSPCA SOUTHPORT, ORMSKIRK AND DISTRICT BRANCH INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF RSPCA SOUTHPORT. ORMSKIRK AND DISTRICT BRANCH I report to the tiustees on my examinatr)n of the ￿ana81 statmrrts of RSPCA &)uthKN)rt Ormskirk and District Branch (the chartyl the year eniknl 31 tlecember 2021. Responsibilities and basis of report As the trustees of the charty are resFonsbb lor the preparation of the finanaal statements in accordance ￿1th the requirements of the Charities Aca 2011 lthe 2011 Act). I report in respect of my &¥a￿natIOn of the charws financkil st*ments caffied out under sec*ion 145 of the 3)11 Act In carying out my wAaMinat￿n I have folIc￿d all the applirabb8 DIr￿t￿jns gNen by the Charty Commission under sectyw 145151{b} of tts 2011 ACL Independent examinerfs statement Since the charitys gross Ino)me exceeded £E{J,c￿ your exaniner a rr￿mber of a b￿Y listed in sertlon 145 of the 2011 Act. I confi'rm that l am qualrfi&J to undertake the examinatK*n because l am a member ol, vthich is one ol the listed L￿d*s. Your attention Is drawn to the fart that the tharity has Prepar￿ finanTral *aterrents In aCC￿rdanCe wth Accounting and Rewrting by Charth'6s prepariNJ their accc￿nts in accordance ￿1th the Financial Reporting Standard ap￿IcabL? in thè UK and R•public cl Ir8Land IFRS 1021 in pr*fer•rt• to thè Accounting and Rewrtsng by Charitiès Statement ol Recormiended Pracb'ce tssued on 1 Apnl 21x6 r*erred to In the extant regulatKJns but has now been 4Mthdra%￿. l und8rstsnd that this has b￿n sS)n• *) ord•f for linanoal stat•m8rts to a truè and fair VI￿ in ¥xordanc• th Genèrally AceéOéd *t￿Un￿n9 Pradic* repo￿1￿ perhX$ b•ginning on or aftèr 1 January 2015. I have comp￿ted my examinati￿. I confirm that no nwtters have ￿rr* to my attenb'cm in CoThn￿t￿n wth the ¢xamin?tion gNing ￿ ¢ause to beliwe that in any material respe¢t" accounting records were nc4 keFrt In resW ofthe chanty as requ￿ by sec*'on 130 rf the 2011 Act,. or the finanoal statèmènts (b) not aets)rd Nmth records or the finanaal statements do nct ccThply wth the 8P[J￿8b1e ro4uirerr*nts oJncemiThJ the form and conlenl of accounts set out in the Charth6s (Accounts and Reports) Regulations X08 other than any rlNuiren￿nt that the aeetsunts gN8 a tru• and lair Y￿W￿*Uch is not a mattèr cOn￿der&I as part (t an Indèptrndènt •xamination. I have no Cor￿ern$ aml have corr* across no crther matttts in cOnn￿tiOn with the exaMinatiC￿ to attention should be dra￿￿ in this report in order to enab￿ a prcyer undwstanding of the fina￿￿￿1 statements to be reached. Champion Accountants LLP M Taylor FCA 7-9 ststion Road Hesketh Bank Preston Lancashire PR4 6SN Dated..