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2022-12-31-accounts

Registered charity number: 242560

Report of the Trustees’ and Annual Report and Accounts for the year ended 31 December 2022 for The Leicester and Leicestershire Animal Aid Association

The Rowleys Partnership Limited Statutory Auditors Chartered Accountants Charnwood House Harcourt Way Meridian Business Park Leicester LE19 1WP

The Leicester and Leicestershire Animal Aid Association

Contents of the Annual Report For the year ended 31 December 2022

Page
Trustees Report 1
Report of Independent Auditors 15
Statement of financial activities 18
Balance sheet 19
Statement of cash flows 20
Notes to the accounts 21

The Leicester and Leicestershire Animal Aid Association Trustees’ Report For the year ended 31 December 2022

Reference and Administrative Information

Charity number 242560

Name by which the charity is also known Leicester Animal Aid

Principal Office Elmwood Farm, Forest Road, Huncote, Leicestershire LE9 3LE

Trustees Elizabeth Anne Martin, Chairman Anabel McDougall, Secretary Ian Pritchard, Treasurer Christine Pougher, Assistant Treasurer Robin Arnold (appointed 18[th] March 2022) Jess Bostock Kevan Kirby Dana Newcombe Lesley Shepherd (appointed 30[th] December 2022; resigned 11 May 2023)

General Manager Keely Short

Auditors The Rowleys Partnership Ltd, Chartered Accountants
Charnwood House, Harcourt Way, Meridian Business Park,
Leicester, LE19 1WP
Solicitors Shakespeare Martineau LLP
Two Colton Square, Leicester LE1 1QH
Financial Advisors Handford Aitkenhead & Walker Ltd
4 Brook Park, Gaddesby Lane, Rearsby,
Leicestershire LE7 4ZB
Bankers Lloyds Bank plc
SME Client Services, Orchard House, Orchard Hill, Little Bi
Northampton NN3 9AG

The title to the property is held since 15[th] July 2021 by the Official Custodian for Charities in trust for the charity under the powers given in sections 69 and 90 of the Charities Act 2011.

1

The Leicester and Leicestershire Animal Aid Association Trustees’ Report For the year ended 31 December 2022

Introduction

The trustees present their report along with the financial statements of the charity for the year ended 31st December 2022. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity’s trust deed, the Charities Act 2011 and the Statement of Recommended Practice: Accounting and Reporting by Charities published on 16[th] July 2014.

Our Vision

The guiding vision of LAA is happy pets in responsible, loving homes and to this end we serve the public by providing a second chance for hundreds of unwanted, abandoned, lost, stray or neglected domestic animals.

Objectives

“The objects of the Association are to collect sums of money for the purpose of acquiring from all sources and protecting and caring for lost, stray and unwanted domestic animals, accommodating, feeding, training, providing veterinary services for and otherwise caring for and promoting the welfare of such animals generally and the placing of such animals in suitable homes.”

Our primary animal welfare objective for 2023 is to continue to develop and improve the quality of the care we provide and to strengthen the service we give to the public.

Our primary financial objective for 2023 is to ensure that the charity operates on a sound commercial basis, therefore securing the future of LAA and the welfare of the cats and dogs in our care.

Our Purpose

2

The Leicester and Leicestershire Animal Aid Association Trustees’ Report For the year ended 31 December 2022

Public Benefit

Leicester Animal Aid seeks to deliver public benefit by helping to ensure that local communities do not have to deal with unwanted dogs or cats and promote and support responsible pet ownership. In addition to the public benefit of fewer stray animals on the street we believe that our activities support and educate local people to enjoy the great benefits of happy and safe pet ownership, which in turn promotes proven health benefits.

These benefits are delivered directly to the public through the following activities:

Activities and Fundraising

Our Fundraising Team has put in place a comprehensive strategy to better structure our fund-raising and volunteer programme by:-

3

The Leicester and Leicestershire Animal Aid Association Trustees’ Report For the year ended 31 December 2022

Volunteers

LAA could not exist without the help and support provided by volunteers too numerous to mention individually. We thank you all for your selfless contribution to the well-being of the charity and for your support in what we are trying to achieve by giving freely of their time. For example the foster-carers, shop and sale volunteers, donated goods sorters, Kennel and cattery helpers, receptionists, gardeners, site maintainers, supermarket collectors, trustees and many other volunteers.

Examples of fundraisers

By donating

Ambassador Barrie Stephen

Local entrepreneur Barrie Stephen became an ambassador for LAA in 2019. A dedicated fundraiser, big animal lover and a well-respected member of the local business community, Barrie with PA Chelsea Read, family, friends and colleagues in Barrie’s Salons have raised since then over £15,000 by organising events, running marathons and helping get our name out to the wider community.

4

The Leicester and Leicestershire Animal Aid Association Trustees’ Report For the year ended 31 December 2022

Corporate Supporters – it’s not all about direct donations. Giving the gift of time and skills sharing has been incredibly useful to us too

Investing in communications

We are spreading our News and photographs through our twice yearly printed newsletter, Google, Facebook, Instagram, YouTube and our website www.leicesteranimalaid.org.uk .

Staff Development

We are very proud of our staff’s continued dedication and commitment to their individual roles and the Charity as a whole and the team has excelled during 2022 with real dedication, in difficult times during the pandemic, to ensure the well-being of the animals in our care.

5

The Leicester and Leicestershire Animal Aid Association Trustees’ Report For the year ended 31 December 2022

Achievements and Performance

Animal numbers

Dogs Number in to re-home 127 (2021 95) Rehomed 131 (2021 71) Strays reunited with owners 31 (2021 22) Returned to LAA 7 (2021 7) Deceased 6 (2021 13) ( 4 ill health and 2 for behavioural reasons) Cats Number in to re-home 195 (2021 197) (Including 22 born on site) Re-homed 175 (2021 172) Returned to LAA 15 (2021 7) Deceased 1 (2021 3) (ill health)

Our intake of dogs rose by 33% following COVID-19 as more people found it difficult to look after their pets. We have seen a rise in unwanted female cats and kittens including many born on site.

We take this opportunity to thank all our kennel and cattery staff and volunteers for their dedication, hard work in all weathers and the love they give to our residents.

Animal Welfare

Leicester Animal Aid’s non-euthanasia policy ensures that regardless of breed, age and length of stay, all dogs and cats will be cared for until a new, loving home can be found. Whilst in the care of LAA all efforts will be made to ensure their stay is safe, secure and happy. Their psychological and physical welfare is our primary concern. However, sadly there are occasions when it becomes apparent that an animal may be deemed too ill or aggressive to enjoy a quality of life and as a responsible and caring organisation we cannot re-home. Any decision to put an animal to sleep is taken only when all other avenues have been exhausted and must be authorised in writing by the General Manager, in consultation with our nominated veterinary practice, and where appropriate, a qualified behaviourist.

Any such sad decisions are reported to the Management Committee with full details by the General Manager as part of her Operational Report.

It may be necessary to put an animal to sleep for the following reason(s):

6

The Leicester and Leicestershire Animal Aid Association Trustees’ Report For the year ended 31 December 2022

What is FIV?

Feline immunodeficiency virus (FIV) stops a cat’s body from producing a normal immune response. Infected cats are highly susceptible to secondary infections and illnesses.

The FIV virus is usually passed through biting in fights. It can be spread through one bite, either from or inflicted upon, an FIV infected cat. Infected cats are a risk to healthy cats.

What is FeLV?

Feline leukemia virus (FeLV) is an incurable viral infection that eventually produces fatal illness in infected cats.

The virus is spread by infected cats through licking, biting, sharing food bowls and litter trays. Close contact is required and the virus is found in saliva, urine and other secretions of infected cats.

We are proud that our enrichment activities have been recognised on a national and international stage. We have hosted representatives from many other animal welfare organisations who have visited our site and who have been very impressed with the enrichment facilities provided by the staff and site and also by its cleanliness and technical aspects.

Pet support

A kennel environment is by its very nature a stressful experience for domestic pets and we are planning to provide even more facilities during 2023 to help alleviate the animals’ stress and boredom. We continue to look for further improvements to our site.

Community Pet Support Scheme (CPSS) .

We launched in July 2016 our ‘free to use Community Pet Support Scheme’ for elderly, disabled, isolated and vulnerable people in the Districts of Oadby & Wigston, Blaby and Hinckley & Bosworth to help them keep their cherished pets in their homes. This is done by working with professional referral partners such as local social services, health services and voluntary organisations. This scheme is run by our CPSS co-ordinator with a team of staff.

We are enormously grateful to the National Lottery Community Fund, Animal Friends Pet Insurance, Edith Murphy Foundation, Shire Community Grants and others for helping fund our Community Pet Support Scheme.

In particular we are grateful to The National Lottery Community Fund who are granting £90,000 over a three-year period from April 2022 to help with staff costs.

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The Leicester and Leicestershire Animal Aid Association Trustees’ Report For the year ended 31 December 2022

Financial Review

The charity receives no government support and is totally reliant for its income on legacies, donations, fundraising, grants, donations from our trading subsidiary and investment income.

The vast majority of our expenditure goes towards our charitable objectives of finding loving forever homes for our re-homed animals and to provide support and guidance for pet owners.

Income
Legacies
Grants
Donations and fundraising
Homing fees
Donation from trading subsidiary
Investment Income
Total income
 2022
£
%
£392,467
51%
£4,167
1%
£288,069
37%
£44,878
6%
£37,894
5%
£767,475 100%
£43,669
£811,144
 2021
£
%
£338,282
49%
£81,472
12%
£221,782
32%
£29,630
4%
£ 17,277
3%
£688,443 100%
£31,065
£719,508

2022 has been a good year financially for the charity, our total income was £811,144 (2021 £719,508) and our costs were £772,218 (2021 £648,191). As a consequence, the charity finishes the year with a deficit of £237,559 (including unrealised losses on investments of £276,485). In 2021 the surplus was £164,842 (including unrealised gains on investments of £93,525).

Our financial viability is highly dependent on legacy income which by its nature is very volatile. In 2022 we received a good amount from legacies of £392,467 (2021 £338,282). The proportion of our income from legacies rose to 51% from 49% in 2022. This cannot be relied on or expected in future years.

The Trustees are aware that future income from legacies cannot be guaranteed and therefore it is prudent to identify ways in which income from other sources can be generated to cover any potential shortfall in the future. The Trustees and fundraising team are working on different income-generating projects to provide regular income through membership, monthly donations and trading income.

Expenditure
Fundraising costs
Charitable expenditure
Governance costs
Total costs		 2022

£
%

£46,157
6%

£710,976
92%

£15,085
2%

£772,218 100%
 2021
£
%
£37,242
6%
£594,222
91%
£16,727
3%
£648,191
100%

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The Leicester and Leicestershire Animal Aid Association Trustees’ Report For the year ended 31 December 2022

92p in the £1 (91p in 2021) of our costs are spent on our charitable aims.

In 2022 our payroll costs increased by £23,580 from £415,639 to £439,219 with staff numbers decreasing from 31 to 26.

Veterinary fees increased by £15,914 from £50,486 to £66,400 for two reasons. More animals that come into our care require more care and veterinary fees and medicine costs have increased. In November 2016 the charity put in a place an employees’ pension scheme with People’s Pension and are pleased to report a 100% take up by eligible staff. In 2022 this cost the charity £12,354.

The General Manager and her staff are to be commended for maintaining tight budgetary control over expenditure throughout the year. Control of costs against the budget is particularly important when we have such volatility of income.

Leicester Animal Aid Limited (LAA Ltd) is the wholly-owned trading subsidiary of the charity. 2022 was a better year for LAA Ltd with the shops reopening for long periods and a number of smaller sales events taking place later in the year. Income rose from £51,005 in 2021 to £63,443 in 2022 and we were able to donate £37,894 profit from LAA Ltd to the Charity in 2022.

Investment Policy and Performance

Aims

The overall investment aim is to maximise income in the form of interest and dividends, whilst maintaining the value of the capital sums invested. During 2022 the Trustees followed independent financial investment advice from Handford Aitkenhead & Walker Ltd.

Preferences/Constraints

Wherever possible investments exclude organisations which are involved in animal testing for cosmetic or pharmaceutical purposes, intensive farming or fur trading. This does very much restrict the range of funds we can invest in.

Short-term financing needs will be achieved by the use of Fixed Term Deposits. The term of each deposit should not exceed 12 months.

Risk Profile

A risk-averse investment policy was pursued in order to protect the underlying value of the funds donated by our supporters.

Monitoring

Returns on investment are monitored by the Treasurer to ensure that an adequate income stream is being maintained. Investment performance is reviewed periodically by the Trustees in conjunction with the financial advisors and reported to the Committee four times a year.

A spread of ethical investments is actively managed by Aviva. This year there has been a rise in dividends and interest to £26,500 (2021 £15,391).

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The Leicester and Leicestershire Animal Aid Association Trustees’ Report For the year ended 31 December 2022

2022 was an exceptionally poor was year for investors. Every region has its troubles with the war in Ukraine, soaring energy bills and inflation. Our portfolio is a mixture of equities 57%, fixed interest securities 35% and money market 8%. The value of our investments fell by £282,156 (19%) (2021 gain £93,525).

Our original investment in the fund between 2013 and 2015 totalled £940,000 so we are still showing a substantial gain of £246,638 on that and each year we withdraw income to help pay running costs of the kennels and cattery. In the last five years we have used income totalling £152,630 for this.

35% of our portfolios is in fixed interest securities (including government gilts) fell by about 20% in 2022. These have always been seen as a low risk investment. The UK gilt index was down 28% at one point in the year and this has been described as a 1 in 50 year event. There has been some recovery in these in 2023.

The advice at the moment is to hold the investments in the expectation of a longer term recovery with a minor adjustment to move some of the investment in UK company shares to overseas companies where there are better prospects.

Investment income is received net of investment management costs, which are deducted at source. Investment management costs are made up of the following elements:

Aviva transactional and ongoing fees 0.76 %
Investment Advice Fees (after charity discount) 0.48%
Total costs of investment are 1.3% (2021 1.3%) per annum.

Reserves Policy

Reserves are held to protect the charity against fluctuations in income and to ensure that sufficient funds are held to enable us to fulfil our plans and objectives. The Trustees have reviewed the Reserves Policy in the light of the Strategic Review and have decided it would be prudent to hold allocated reserves to cover specific planned activities. In addition, the Trustees have noted that many charities within the sector have felt it prudent to hold two years’ operating expenses in reserve to cover any potential downturns in income and have decided to set the Operating Cost Reserve accordingly. Reserves are allocated as follows:

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The Leicester and Leicestershire Animal Aid Association Trustees’ Report For the year ended 31 December 2022

Designated Funds

ed Funds
Reserve Name Objective Amount
• Operating Cost Reserve To ensure and protect continuing
operation of the re-homing centre		 £1,000,000
• Maintenance Reserve To ensure the re-homing centre
continues to be fit for purpose		 £100,000
• Business Development Reserve To ensure that funds are available to
support activities designed to raise
revenue		 £150,000
• Outreach Support Reserve To provide funds to support dogs and
cats in the local community		 £25,000

Designated funds have been allocation to the following projects completed in 2022:-

The trustees and senior management are constantly reviewing and planning for improvements to our site using grants, donations and the funds of the charity.

Future plans to include:-

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The Leicester and Leicestershire Animal Aid Association Trustees’ Report For the year ended 31 December 2022

Restricted Funds

Funds given through donations or other sources for specific projects will be separately identified and treated as restricted reserves. Restricted reserves will only be spent for their intended use as specified by the donor.

Movements on reserves are regularly monitored by the Treasurer and reported to the Trustees on at least a quarterly basis.

Reserves are invested in accordance with the charity’s Investment Policy and the Reserves Policy is reviewed annually.

Structure, Governance and Management

LAA is an unincorporated charity and the charity’s objects are set out in its Rules and Constitution (2012).

The charity was formally founded in 1956 by Dorothea Farndon who used to buy all the stray dogs from the police each week that were due to be shot, having not been claimed. In 1960 Mrs. Farndon acquired land at Thurmaston Lane, Leicester where she was able to put up kennels and establish her own rescue centre. In 1971 she oversaw the move to the current premises in Huncote, Leicestershire.

The trustees are appointed by the Membership at the Annual General Meeting and under current Rules general trustees may serve for an unlimited period of time. The Revised Rules and Constitution (2012) require the election of the officers of the charity (a chair, vice-chair, secretary, treasurer and assistant treasurer) from amongst the members at the Annual General Meeting, who shall hold office from the conclusion of that meeting for a period of two years.

LAA is overseen by a Management Committee, which consists of up to 12 trustees who undertake their duties without payment.

The Committee meets every six weeks to discuss and agree the broad strategy and areas of activity for the charity, including consideration of investment, reserves and risk management policies and performance.

The Committee receives an operational report from the General Manager covering the welfare of animals, personnel issues, operational statistics and other matters and an update report of activities from the Fundraising Manager. The committee receives monthly reports from the Treasurer of the financial position of the charity and trading company.

The Trustees are actively seeking further appropriately qualified and/or experienced potential Trustees. As LAA continues its work within an increasingly complex legal, social and environmental framework the trustees have recognised the need to focus on specific issues and to draw on specialist skills, whether they exist within the trustee body, or elsewhere.

The charity is a member of the Association of British Dogs and Cats Homes and is affiliated to the charity Wood Green Animal Shelters.

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The Leicester and Leicestershire Animal Aid Association Trustees’ Report For the year ended 31 December 2022

Risk Management

The Trustees have reviewed the major risks and are satisfied that systems and procedures have been established to manage those risks.

The trustees and staff assess and review through the year the risks associated with running the charity and have established systems and procedures to mitigate against material risks. The General Manager reports to the Trustees at each Management Committee Meeting on all aspects of Risk Management. All insurable risks are covered by insurance, including public liability, buildings and premises, trustee indemnity insurance.

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The Leicester and Leicestershire Animal Aid Association Trustees’ Report For the year ended 31 December 2022

Trustees’ responsibilities in relation to the financial statements

The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales 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 of the charity for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They 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.

Signed on behalf of the trustees:

Ian Pritchard BSc FCA

Date: 23 June 2023

14

The Leicester and Leicestershire Animal Aid Association Report of the Independent Auditors to the Trustees For the year ended 31 December 2022

We have audited the financial statements of Leicester and Leicestershire Animal Aid Association (the ‘charity’) for the year ended 31 December 2022 on pages 18 to 27, which comprise the Statement of Financial Activities, the Statement of Cash Flows, the Charity Balance Sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and and United Kingdom Accounting Standards including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the trustee’s annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves.

15

The Leicester and Leicestershire Animal Aid Association Report of the Independent Auditors to the Trustees For the year ended 31 December 2022

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 16, the trustees are responsible for the preparation of financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

16

The Leicester and Leicestershire Animal Aid Association Report of the Independent Auditors to the Trustees of For the year ended 31 December 2022

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

The Rowleys Partnership Ltd Statutory Auditors Chartered Accountants Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 Charnwood House Harcourt Way Meridian Business Park Leicester Leicestershire LE19 1WP

Date: 23 June 2023

17

Statement of Financial Activities For the year ended 31 December 2022

The Leicester and Leicestershire Animal Aid Association

Note
Income and endowments from:
Donations and legacies
2
Investments
3
Other income
3a
Total income
Expenditure on:
Cost of generating funds
Fundraising costs
4
Charitable expenditure
Costs of activities in furtherance
of the Charity's objectives
5
Other
Support costs
6
Total expenditure
Net gains/(losses) on investments:
8
Net income
Funds Transferred
12
Net movement in funds
12
Reconciliation of funds:
Total funds brought forward
12
Total funds carried forward		 Unrestricted
Funds
£
671,291
43,669
4,444
719,404
46,157
652,274
15,085
713,516
(276,485)
(270,597)
15,081
(255,516)
3,571,537
3,316,021		 Restricted
Funds
£
90,240
-
1,500
91,740
-
58,702
-
58,702
-
33,038
(15,081)
17,957
23,984
41,941		 Total
Total
2022
2021
£
£
761,531
604,811
43,669
31,065
5,944
83,632
811,144
719,508
46,157
37,242
710,976
594,222
15,085
16,727
772,218
648,191
(276,485)
93,525
(237,559)
164,842
-
-
(237,559)
164,842
3,595,521
3,430,679
3,357,962
3,595,521

All income and expenditure is derived from continuing activities.

18

The Leicester and Leicestershire Animal Aid Association Balance Sheet As at 31 December 2022

Note
Fixed Assets
Investments
8
Tangible assets
9
Current Assets
Debtors
10
Cash at bank and in hand
Current Liabilities
Creditors
Amounts falling due within one year
11
Net Current Assets
Unrestricted Funds
12
Designated Funds
Restricted Funds
Approved on behalf of the trustees:
E. Anne Martin		 £
£
£
£
1,186,639
1,468,795
1,132,758
1,117,246
2,319,397
2,586,041
280,572
102,833
782,377
925,362
1,062,949
1,028,195
(24,384)
(18,715)
1,038,565
1,009,480
3,357,962
3,595,521
2,041,021
2,296,537
1,275,000
1,275,000
41,941
23,984
3,357,962
3,595,521
Ian Pritchard BSc FCA
2022
2021		 £
£
£
£
1,186,639
1,468,795
1,132,758
1,117,246
2,319,397
2,586,041
280,572
102,833
782,377
925,362
1,062,949
1,028,195
(24,384)
(18,715)
1,038,565
1,009,480
3,357,962
3,595,521
2,041,021
2,296,537
1,275,000
1,275,000
41,941
23,984
3,357,962
3,595,521
Ian Pritchard BSc FCA
2022
2021
2,586,041
1,009,480
3,595,521
2,296,537
1,275,000
23,984
3,595,521

Date: 23 June 2023

The notes on pages 21 to 27 form part of these financial statements

19

The Leicester and Leicestershire Animal Aid Association

Statement of Cash Flows As at 31 December 2022

2022 2021
Note £ £
Cash flow from operating activities 1 (127,047) 123,253
Cash flow from investing activities
Interest received 2,198 1,670
Dividends received 26,500 15,391
Capital expenditure
Fixed asset additions (50,304) (450)
Investment additions (51,773) (18,556)
Investment disposal proceeds 57,444 43,666
Net cash flow from investing activities (15,935) 41,721
Net increase/(decrease) in cash and cash equivalents (142,980) 164,973
Cash and cash equivalents at the beginning of the reporting period 925,362 760,389
Cash and cash equivalents at the end of the reporting period 782,382 925,362
Note 1 Reconciliation of net income to net cash flow from operating activities
2022 2021
£ £
Net income for year (as per the statement of financial activities) (237,559) 164,842
Adjusted for:
Gain/(loss)on investment 276,485 (93,525)
Dividends and interest from investments (28,698) (17,061)
Depreciation charges 34,792 34,291
Decrease/(increase) in debtors (177,738) 28,002
(Decrease)/increase in creditors 5,671 6,704
Net cash flow from operating activities (127,047) 123,253

20

The Leicester and Leicestershire Animal Aid Association

Notes to the Accounts For the year ended 31 December 2022

1 Accounting policies

The charity constitutes a public benefit entity as defined by FRS 102. 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 United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019.

The financial statements have been prepared under the historical cost convention except for the valuation on investment assets where appropriate, which are shown at market value.

Going concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

Restricted Funds

These relate to monies received for specific projects, notably the sponsor fund whereby individuals sponsor the care of certain animals. Certain monies received in the past relating to building projects are transferred to unrestricted funds once the building works have been achieved.

Unrestricted Funds

Unrestricted Funds comprise those funds which the trustees are free to use for any purpose in furtherance of the charitable objectives.

Designated Funds

Designated Funds comprise of those funds which the trustees have seperated from general funds for specific operational projects as detailed in Note 12 of these financial statements.

Income & Expenditure

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. This also applies to any legacies.

Gifts in kind are estimates based on market price the charity would otherwise have paid.

Expenditure is recognised as resources expended as soon as there is a legal or constructive obligation committing the charity to the expenditure. All income and expenditure is accounted for on an accruals basis.

Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Costs include those directly attributable to making the asset capable of operating as intended.

Depreciation

Depreciation of fixed assets is calculated to write off their cost or valuation less any residual value over their estimated useful lives as follows:

Freehold Land and Buildings 2% Per annum on cost of buildings Plant and Machinery 10% Per annum on net book value Motor Vehicles 25% Per annum on net book value

Government Grant

Government grants receivable in relation to job retention scheme and retail scheme are recognised as income over the periods necessary to match them with the related costs which they are intended to compensate, on a systematic basis.

21

The Leicester and Leicestershire Animal Aid Association

Notes to the Accounts For the year ended 31 December 2022

1 Accounting policies - continued

Investments

Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in ‘net gains / (losses) on investments’ in the SOFA if the shares are publicly traded or their fair value can otherwise be measured. reliably.

Investments in subsidiaries are measured at cost less impairment.

Allocation of overheads and support costs

Overhead and support costs have been allocated between costs of activities in furtherance of the charities objectives and governance costs.

Costs of activities in furtherance of the Charity's objectives

Costs of activities in furtherance of the Charity's objectives are those costs incurred in the day to day running of the charity in order to meet its objectives, as described in the report of the trustees.

Governance costs

Governance costs comprise all costs involving public accountability of the charity and its compliance with regulation and good practice.

2
Schedule of Income received
Legacies
Membership fees
Collection Boxes
Give as you earn donations
Fund raising
Subscriptions, donations & prize draws
Homed
Gifts in kind
Sponsors
Income from subsidiary		 Unrestricted
fund
£
392,467
26,033
1,766
1,168
28,619
117,389
44,878
20,518
559
37,894
671,291		 Restricted
fund
£
-
-
-
-
-
90,240
-
-
-
-
90,240		 Total
2022
£
392,467
26,033
1,766
1,168
28,619
207,629
44,878
20,518
559
37,894
761,531		 Unrestricted
fund
£
338,282
21,644
1,599
785
25,451
133,251
29,630
23,159
500
17,277
591,578		 Restricted
Total
fund
2021
£
£
-
338,282
-
21,644
-
1,599
-
785
-
25,451
13,233
146,484
-
29,630
-
23,159
-
500
-
17,277
13,233
604,811

The charity is continually grateful to the donations of the general public and various institutions for donations of food and consumables utilised by the charity in the caring for the animals. An amount totalling £20,518 in respect of the fair value of these goods is recognised in donations above with the equivalent charge included within ''Food and consumables' in note 5 of these financial statements.

3
Schedule of Investment income
Bank deposit interest
Dividend income
Tax rebate on covenants and gift aid
3a
Other Income
Grant income
CJRS Income
Rental income		 Unrestricted
fund
£
2,198
26,500
14,971
43,669
2,667
-
1,777
4,444		 Restricted
fund
£
-
-
-
-
1,500
-
-
1,500		 Total
2022
£
2,198
26,500
14,971
43,669
4,167
-
1,777
5,944		 Unrestricted
fund
£
1,670
15,391
14,004
31,065
24,000
57,472
2,160
83,632		 Restricted
Total
fund
2021
£
£
-
1,670
-
15,391
-
14,004
-
31,065
-
24,000
-
57,472
-
2,160
-
83,632

22

Notes to the Accounts

The Leicester and Leicestershire Animal Aid Association

For the year ended 31 December 2022

4 Fundraising costs

Unrestricted
fund
£
Fundraising staff costs
35,331
Fundraising expenses
6,499
Advertising
4,326
46,157		 Restricted
fund
£
-
-
-
-		 Total
Unrestricted
2022
fund
£
£
35,331
29,674
6,499
3,663
4,326
3,263
46,157
36,600		 Restricted
Total
fund
2021
£
£
-
29,674
-
3,663
642
3,905
642
37,242

5 Costs of activities in furtherance of the Charity's objectives

Unrestricted
fund
£
Salaries and wages
335,183
Social security costs
20,816
Veterinary and medical fees
59,158
Rates and water charges
2,085
Food and consumables
24,313
Cleaning and waste disposal charges
10,590
Training
1,210
Heating and lighting
20,228
Repairs and renewals
85,816
Insurances
10,698
Sundry expenses
10,803
Depreciation of buildings
33,821
Depreciation motor vehicles
361
Depreciation plant and machinery
610
Motor expenses
3,993
Printing postage and stationery
20,043
Telephone charges
3,909
Computer and internet
7,258
Bank charges
235
Subscriptions
1,144
652,274
6
Support costs
Unrestricted
fund
£
Governance costs
Salaries and wages
3,516
Social security costs
391
Legal and professional fees
1,781
Auditors' remuneration - Audit
5,250
Auditors' remuneration - Non Audit
4,147
15,085		 Restricted
fund
£
43,981
-
7,242
-
6,341
-
-
-
979
-
-
-
-
-
-
-
159
-
-
-
58,702
Restricted
fund
£
-
-
-
-
-
-		 Total
Unrestricted
2022
fund
£
£
379,164
326,099
20,816
17,827
66,400
47,919
2,085
2,012
30,654
25,903
10,590
9,064
1,210
1,742
20,228
12,185
86,795
23,632
10,698
8,683
10,803
11,077
33,821
33,181
361
482
610
628
3,993
3,059
20,043
17,885
4,068
2,963
7,258
3,665
235
155
1,144
573
710,976
548,734
Total
Unrestricted
2022
fund
£
£
3,516
3,516
391
391
1,781
4,241
5,250
4,740
4,147
3,839
15,085
16,727		 Restricted
Total
fund
2021
£
£
38,132
364,231
-
17,827
2,567
50,486
-
2,012
2,458
28,361
66
9,130
-
1,742
-
12,185
2,004
25,636
-
8,683
-
11,077
-
33,181
-
482
-
628
-
3,059
-
17,885
203
3,166
-
3,665
58
213
-
573
45,488
594,222
Restricted
Total
fund
2021
£
£
-
3,516
-
391
-
4,241
-
4,740
-
3,839
-
16,727

23

The Leicester and Leicestershire Animal Aid Association

Notes to the Accounts

For the year ended 31 December 2022

7 Staff costs

Wages and Salaries
Employers National Insurance
Employers Pension Contributions
The average number of employees was:		 2022
2021
£
£
405,658
386,694
21,207
18,218
12,354
10,727
439,219
415,639
2022
2021
26
31

Personnel, deemed as key to the purposes of the charity by the trustees received remuneration in the year totalling £43,174 (2021 - £39,067).

Key personnel are occasionaly reimbursed for travel costs, these however are not material to the financial statements. No employee has received remuneration in excess of £60,000 in the current or prior financial period.

The trustees are all volunteers and received no remuneration or remibursement of expenses in this year or in the previous year.

8
Investments
Cost or Valuation brought forward
Addition
Disposals
Change in market value
Cost or Valuation carried forward		 Listed
£
1,468,794
51,773
(57,444)
(276,485)
1,186,638		 Unlisted
£
1
-
-
-
1		 Total
Total
2022
2021
£
£
1,468,795
1,400,380
51,773
18,556
(57,444)
(43,666)
(276,485)
93,525
1,186,639
1,468,795

The charity owns the whole of the issued ordinary share capital of Leicester Animal Aid Ltd, a company registered in England, no.07064232. The subsidiary is used for non-primary purpose trading activities. Available profits are gifted to the charity and subsequently treated as donations. A summary of the results of the subsidiary is shown below:

Profit and loss account
Turnover
Cost of sales
Gross profit
Donations to LAA
Administrative expenses
Profit after taxation
Balance Sheet
Assets
Liabilites
Share capital
Profit and loss
Shareholders' funds		 2022
2021
£
£
63,444
51,005
(10,582)
(9,904)
52,862
41,101
(37,894)
(17,277)
(4,577)
(21,380)
10,391
2,444
43,360
34,131
(2,890)
(4,052)
40,470
30,079
1
1
40,469
30,078
40,470
30,079

24

The Leicester and Leicestershire Animal Aid Association

Notes to the Accounts For the year ended 31 December 2022

8 Investments (continued)

Listed investments relate to a portfolio, managed on behalf of the charity by a professional independent third party.

Investments consist of the following;
Listed holdings- UK equities
Cash on deposit
9
Tangible assets
Cost
At 1 January 2022
Additions
At 31 December 2022
Depreciation
At 1 January 2022
Charge for the year
At 31 December 2022
Net book value
At 31 December 2022
At 31 December 2021		 Freehold
Land and
Buildings
£
1,760,616
32,003		 Plant and
Machinery
£
44,884
18,301		 2022
2021
£
£
1,156,552
1,443,213
30,086
25,581
1,186,638
1,468,794
Motor
Vehicles
Total
£
£
10,970
1,816,470
-
50,304
10,970
1,866,774
9,525
699,224
361
34,792
9,886
734,016
1,084
1,132,758
1,445
1,117,246
1,792,619 63,185
650,918
33,821		 38,781
610
684,739 39,391
1,107,880 23,794
1,109,698 6,103

The Freehold property is held by the Official Custodian for Charities dated the 15 July 2021 by Order of the Charity Commission for England and Wales.

10
Debtors
Trade debtors
Amounts owed from subsidiary company
Prepayments and accrued income
VAT receivable
11
Creditors: amounts falling due within one year
Trade creditors
Accruals and deferred income
Other creditors		 2022
2021
£
£
60
-
58
1,360
272,846
97,900
7,608
3,573
280,572
102,833
2022
2021
£
£
14,345
11,204
9,182
6,418
857
1,093
24,384
18,715

25

The Leicester and Leicestershire Animal Aid Association

Notes to the Accounts For the year ended 31 December 2022

12
Funds and funds transfers
Unrestricted Balance
Balance
at 01.01.22
Incoming
Outgoing
Transfers
at 31.12.22
£
£
£
£
£
General 2,296,537
719,404
(990,001)
15,081
2,041,021
Designated:
Rehoming Centre Operations
Rehoming Centre Maintenance
Business Development
Outreach Support
Restricted
Special purpose donations		 1,000,000
-
-
-
1,000,000
100,000
-
-
-
100,000
150,000
-
-
-
150,000
25,000
-
-
-
25,000
1,275,000
-
-
-
1,275,000
11,764
4,773
(5,384)
-
11,153
8,069
3,688
(1,082)
-
10,675
1,671
-
-
-
1,671
1,334
-
-
-
1,334
-
12,370
(22,828)
10,458
-
-
40,000
(25,235)
-
14,765
-
2,500
(3,195)
695
-
- Kennels Enrichment
- Cattery Enrichment
P Dakin Legacy
Jean Chuter Memorial Fund
Community Pet Support Scheme
- General Fund
- The National Lottery Community
Fund RC Midlands Region
Animal Friends Medical Foster
Petplan (Site signs Profect)
Dog Adventure Playground Project		 304
-
-
-
304
842
-
-
-
842
Cat Sanctuary Project 2022
Mars Food Grants 2022		 -
26,909
(675)
(26,234)
-
-
1,500
(303)
-
1,197
23,984
91,740
(58,702)
(15,081)
41,941
Total funds 3,595,521
811,144
(1,048,703)
-
3,357,962

Transfers can occur when project spending has been charged through general reserves but related to designated or restricted funds. Furthermore, where funds relate to capital projects, the policy is to make a transfer to unrestricted funds once the capital spend has taken place. In the year the analysis of the transfers were as follows:

£
Costs charged through general reserves
Capital spend		 5,769
(32,003)
(26,234)

Capital spend of £32,003 related to the development of the "Purrfect Palace", two indoor and outdoor secure purpose-built areas was opened for cats who need more space.

26

The Leicester and Leicestershire Animal Aid Association

Notes to the Accounts For the year ended 31 December 2022

12 Funds and funds transfers (continued)

Community Pet Support Scheme

A scheme set up to help the elderly, disabled, isolated and vulnerable people to help them keep their cherish pets in their homes.

13 Analysis of net assets by fund

Unrestricted
Funds
£		 Designated
Funds
£		 Restricted
Funds
£		 Total
Total
2022
2021
£
£
Fixed Assets
Current Assets
Current Liabilities		 2,065,405
-
(24,384)		 253,992
1,021,008
-		 -
41,941
-		 2,319,397
2,586,041
1,062,949
1,028,195
(24,384)
(18,715)
2,041,021 1,275,000 41,941 3,357,962
3,595,521

14 Commitments

The charity had total guarantees and commitments at the balance sheet date of £49,071 (2021- £13,627).

15 Related party transactions

As explained in note 8 under investments. Donations received in the year from the subsidiary was £37,894 (2021- £17,277). Donations received from the trustees was £Nil (2021 - £50).

Total sales with the subsidiary during the year were £1,980 (2021 - £7,929) and total purchases were £597 (2021 - £1,661). A debtor from the subsidiary of £58 (2021 - £1,988) was outstanding at the year end.

27