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2021-12-31-accounts

Charity registration number: 255763

Royal Society for the Prevention of Cruelty to Animals Nottingham and Notts Branch

Annual Report and Financial Statements

for the Year Ended 31 December 2021

Royal Society for the Prevention of Cruelty to Animals Nottingham and Notts Branch

Contents

Reference and Administrative Details 1
Trustees' Report 2 to 8
Independent Examiner's Report 9
Statement of Financial Activities 10 to 11
Balance Sheet 12
Notes to the Financial Statements 13 to 29

Royal Society for the Prevention of Cruelty to Animals Nottingham and Notts Branch

Reference and Administrative Details

Trustees Mrs L Cook Treasurer
Miss K Grinrod Chair
Ms E Ball Committee
Miss B Butcher Committee
Mrs L Ellis Committee
Mr C Scott Committee
Mrs M Twardawa Committee
Charity Registration Number 255763
Principal Office 137 Radford Road
Hyson Green
Nottingham
NG7 5DU
Bankers Lloyds TSB Bank plc
Old Market Square
Nottingham
NG1 6FD
Independent Examiner RWB CA Limited
Northgate House
North Gate
New Basford
Nottingham
NG7 7BQ
Investment Advisors Brewin Dolphin
1st Floor Waterfront House
Waterfront Plaza
33 Station Street
Nottingham
NG2 3DQ
Investment Advisors HFL Financial Advisors Ltd
6 George Street
Nottingham
NG1 3BE

Page 1

Royal Society for the Prevention of Cruelty to Animals Nottingham and Notts Branch

Trustees' Report

The trustees present the annual report together with the financial statements of the Charity for the year ended 31 December 2021.

Objectives and activities

Objects and aims

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit. In particular, the Trustees consider how planned activities will contribute to the aim and objectives they have set.

The Charity was established with the aim of providing temporary refuge for homeless animals. Animals of a domestic nature are offered for adoption to suitable members of the public. The Charity also cares for wild animals when necessary, and these animals are released into a suitable environment as soon as possible. If necessary, the Charity arranges the humane death of seriously injured or sick animals by qualified personnel. No animal or bird in need is ever turned away where they can be assured of clean, well maintained accommodation, will be well fed, will be provided with veterinary care and where they will be well looked after by dedicated staff.

It is the Charity’s aim to promote kindness and prevent cruelty to animals.

Animals are placed in the care of the Charity by the public, police, local authorities and by the Society’s own inspectors. Focus is placed on supporting the Society’s Inspectorate in the Nottingham area.

Public benefit

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Achievements and performance

The Branch is still active in all aspects of animal welfare despite the pandemic, dealing with 161 animals during 2021 (2020: 237 animals). At busy times during the year it is necessary to use private boarding facilities prior to finding available RSPCA accommodation. The Branch is grateful to Premier Pets who primarily provide this private boarding at a competitive rate and who are responsive to the Branch’s on-going needs, as well as the Radcliffe Animal Shelter for their collaborative approach to enabling animals brought in to Branch care to be rehomed. This is financed by the Branch as boarding bills and veterinary treatments are a Branch responsibility, and together these overheads form a large part of the annual animal welfare expenditure. Branch continues to support Radcliffe Animal Shelter with a significant annual contribution.

Of the 161 animals that were dealt with by the Branch, 134 were neutered with the aid of the Branch during 2021 (2020: 89 neuters). Over many years we have run an assisted neutering service and, even though numbers are still lower than pre-pandemic years (2019: 273 neuters), we still believe it is important that we continue to carry on this valuable campaign into 2022 and beyond.

The Charity continues to work closely with Radcliffe Animal Shelter, contributing over £40,000 in 2021, with the aim to continue providing support in financial donations.

The Charity continues to investigate the potential to work with other non-RPSCA organisations for the promotion of animal welfare in Nottingham.

Page 2

Royal Society for the Prevention of Cruelty to Animals Nottingham and Notts Branch

Trustees' Report

At year end, the Charity held £1,074,747 in non-cash investments (fixed asset investments). Our investment portfolio produced a gain of £297,418, however this is primarily due to a) reinvestment of the £100,000 withdrawn from the portfolio in August 2020 to provide the Branch with a financial buffer during the pandemic uncertainty, and b) a further £100,000 investment of legacy funds received following resolution of a protracted property sale in early 2021. Furthermore, it was decided by trustee vote to reinvest any portfolio gains, which is a change from the previous drawdown policy.

The Trustees have maintained their robust investment strategy and continue to manage the Charity’s funds and investments with the support of HFL Financial Advisers Ltd, our investment and cash deposit strategy advisers, and Brewin Dolphin who act as our investment fund managers.

Our investment strategy takes into account our long-term needs, attitude to risk and our ethical requirements. Because the Charity still trades at a loss, and in order to ensure both long term survival and future development, we need to maintain sufficient funds to cover this deficit and take steps to protect our reserves (referred to as “funds” in the accounts) from the effects of inflation. Our investment risk profile is best described as “cautious with some risk”. We take a moderate approach to risk and invest in well known, reputable and ethical institutions. Approximately 16% of our fixed asset investments are held in bonds issued by the UK government, major banks and financial institutions.

Our ethical stance means that we avoid investing in institutions whose activities may involve the use of animals for testing products, or cause harm to animals.

The Charity aims to invest 75% of our funds in long term funds, and keep 25% in cash. We have a strategy for our cash investments whereby we maximise the interest return we can make by investing in different term bonds and accounts of up to two years. The cash balances are held across different banking institutions to minimise the risk which a further banking crisis may pose to the Branch.

We are pleased to report that the Charity has continued to receive periodic reimbursement dividends from Kaupthing Singer & Friedlander Limited and that, to date, we have recovered nearly all of our investment from the failed Icelandic bank, a matter which we covered in previous annual reports.

Financial review

The Statement of Financial Activities for the year is set out on page 8 of the financial statements. A summary of the financial results and the work of the Charity is set out below.

Income from donations and gifts received during the year amounted to £211,650 in comparison to £166,888 received during 2020. The Charity’s financial statements for the year include legacy income of £171,814 receivable during 2021 compared to £133,080 receivable during 2020. Membership income was £803 in 2021 compared to £481 received in the year 2020.

Retail income was £56,151 compared to £34,520 in 2020. Direct charitable expenditure in relation to the reception, boarding and care of animals continues to absorb the greatest share of the Charity’s expenditure. These costs equated to £312,720 this year, compared to £369,696 in 2020.

It is recognised nationally that fundraising trends have changed over the past few years and the Charity has worked to adapt its approach to income generation. Whilst both the retail charity shops at Hyson Green and Eastwood have a strong and established set of volunteers, there is still a need to recruit more to help with the day to day running of the charities.

Throughout the year, the Charity runs a number of promotional campaigns to boost the uptake of neutering vouchers.

Page 3

Royal Society for the Prevention of Cruelty to Animals Nottingham and Notts Branch

Trustees' Report

Pay policy for senior staff

The Branch manager is the only senior staff employed by the Charity. Her compensation package is reviewed on an annual basis by the Trustees.

Pensions

The workplace pension was introduced in 2016 as a government requirement.

Policy on reserves

The Trustees have reviewed the reserves of the Charity. This review encompassed the nature of the income and expenditure streams, the need to match variable income with fixed commitments and the nature of the reserves. The Charity's general reserve remains strong and well-funded.

Throughout 2021, the Charity's reserves policy continued its two-fold objective: (a) To set aside sufficient contingency funds to cover unforeseen crises or extended periods of financial setback. (This cover is based on 12 months operating costs with £350,000 ring-fenced for this purpose); (b) To enable the long-term survival and future development of the Charity so that it may achieve the Society's objectives in an enduring and effective manner.

This policy will be reviewed during 2021 against the background of economic changes which accompanied the Covid-19 pandemic, and significant reductions in legacy income in recent years. The board continues to believe that the Charity faces a future which is likely to be characterised by fewer and lower value legacies than in the past. Our approach will therefore continue to be cautious and based on a realistic outlook for the future, but it should also be pointed out that the Charity's current total reserves remain strong.

The Trustees recognise that they should expend an appropriate proportion of available funds on the Society's charitable objectives within a reasonable period of time. However, any process which involves a significant depletion of reserves must be handled carefully and gradually. The investment funds we hold produce much needed income which helps to fund our animal care operations and limit the size of our operational deficit.

Plans for future periods

Aims and key objectives for future periods

Main Goals:

The charity will continue to work with the Inspectorate and other RSPCA Branches to invest in animal welfare projects. Whether this be buying equipment for the Inspectorate or continued funding support for other Branches.

Following on from achieving our commitment of investing more into the Radcliffe Animal Shelter, we will continue to support them financially. The renovation we helped fund in prior years have benefitted the local area in terms of animal welfare, public education and veterinary training. We look forward to continuing to provide help to similar projects in 2022.

The charity will continue to hold fundraising events throughout the year, and we will consider how these can be run with other charities.

Page 4

Royal Society for the Prevention of Cruelty to Animals Nottingham and Notts Branch

Trustees' Report

Both our charity shops at Eastwood and Hyson Green continued to generate income despite the national lockdowns and store closures. Our dedicated staff have endlessly found creative ways to continue to raise funds for the Branch through this challenging and uncertain time. This steady income stream is considered to be particularly important in the backdrop of decreasing fundraising opportunities in the wider market.

Whilst we will continue investing in the Eastwood shop to ensure it remains a strong income generator, the trustees voted in December ’21 to permanently close the Hyson Green shop front following continued and sustained risk of harm to our shop staff and volunteers. The pandemic has unfortunately contributed to a faster social decline in the Hyson Green area and our staff safety is paramount. Branch offices continue to operate behind closed doors whilst more suitable office and shop accommodation is found. The Charity will continue to work with the Inspectorate and other RSPCA Branches to invest in animal welfare projects.

Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.

The Trustees have considered the ongoing pandemic and are satisfied that the Charity has enough resources to cope with this. The Charity holds a significant amount of investments, therefore, should the need arise, the Charity has the option to sell the investments held which would support the Charity's ongoing operation.

Structure, governance and management

Nature of governing document

The principal object of the Charity is to use the freehold property for the reception, boarding, and adoption of, unwanted, lost, starving, injured or diseased animals, for the promotion of kindness, and prevention or suppression of cruelty to animals.

The Charity is governed under the RSPCA Rules for Branches 1 January 2003.

The Charity is constituted under the Royal Society for the Prevention of Cruelty to Animals Acts of 1932, 1940 and 1958.

Recruitment and appointment of trustees

The Charity is administered by the Trustees. Trustees retire at each annual general meeting and can offer themselves up for re-election.

Induction and training of trustees

Trustees are interviewed by officers of the Branch and are given an induction pack detailing the RSPCA Branch rules and objectives. Further training is available on request from the Branch Partnership Manager.

Page 5

Royal Society for the Prevention of Cruelty to Animals Nottingham and Notts Branch

Trustees' Report

Organisational structure

The Rules of the Society confer upon the Council power to supervise and control the management and affairs of Branches. The Branch is controlled by elected Executive Officers and Committee Members. The Executive Officers are elected by the Branch Committee. During the year, the Trustees constantly review their composition and effectiveness in order to provide the best services to the charity. Trustees of the full board meet at least once every two months.

Day to day administration of the Branch is delegated to Jo Maddock, Branch Manager. Employees are consulted on issues of concern to them by means of regular staff meetings and are kept informed on specific matters directly by the management. The Charity believes that staff training is vital to animal welfare work, and staff have embarked on courses in practical skills of a comprehensive nature.

The Charity is grateful for the unstinting efforts of volunteers. It is impossible to estimate the enormous amount of time devoted, and value provided, by volunteers without whom the Charity would be unable to run its organisation so effectively and help so many animals in need.

We are equally grateful for the hard work, devotion to duty and long hours given by the Branch manager and staff in running the Charity so well and with so much commitment in the cause of animal welfare.

Major risks and management of those risks

Risk management

The Trustees have assessed the major risks to which the Charity is exposed, in particular those related to the operations and finances of the Charity, and are satisfied that systems and procedures are in place to mitigate our exposure to major risks.

The Charity has adopted a low to medium risk return policy on its investment portfolio and this is reviewed every 6 months with our advisors.

The investments are managed by Brewin Dolphin on the basis of the regulations detailed in the RSPCA Act 1958 and the Trustees have given the investment managers discretion to manage the portfolio within the approved risk profile. The Trustees also benefit from the services of independent financial advisers, HFL Financial Advisers Ltd, who oversee and provide advice on the Charity’s investment portfolio and cash deposits.

During the continued effects of the coronavirus pandemic, the charity is assessing these risks on a bi-weekly basis. We continue to follow government guidelines and have put our own procedures in place to mitigate our exposure to any financial or staff health risks. Whilst we accept that it is difficult to minimise financial risks during the periods in which the charity shops have been forced to close, we maintain that the health and safety of our staff is paramount and are ensuring the Charity is seizing the opportunities open to us (for example, the furlough scheme).

Financial instruments

Objectives and policies

The Charity’s activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the Charity’s policies approved by the board of trustees, which provide written principles on the use of financial derivatives to manage these risks. The Charity does not use derivative financial instruments for speculative purposes.

Page 6

Royal Society for the Prevention of Cruelty to Animals Nottingham and Notts Branch

Trustees' Report

Cash flow risk

The Charity’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The Charity uses foreign exchange forward contracts and interest rate swap contracts to hedge these exposures.

Interest bearing assets and liabilities are held at fixed rate to ensure certainty of cash flows.

Credit risk

The Charity’s principal financial assets are bank balances and cash, trade and other receivables, and investments.

The Charity’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows.

The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.

The Charity has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.

Liquidity risk

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the Charity uses a mixture of long-term and short-term debt finance. Further details regarding liquidity risk can be found in the Statement of accounting policies in the financial statements.

Page 7

Royal Society for the Prevention of Cruelty to Animals Nottingham and Notts Branch

Trustees' Report

Statement of Trustees' Responsibilities

The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

The law applicable to charities 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 applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The trustees are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The annual report was approved by the trustees of the Charity on 23 May 2022 and signed on its behalf by:

L E Cook L E Cook (Jun 6, 2022 11:44 GMT+1) Kerry Grinrod (Jun 6, 2022 22:39 GMT+1) ......................................... ......................................... Mrs L Cook Treasurer Miss K Grinrod Chair Trustee Trustee

Page 8

Royal Society for the Prevention of Cruelty to Animals Nottingham and Notts Branch

Independent Examiner's Report to the trustees of Royal Society for the Prevention of Cruelty to Animals Nottingham and Notts Branch

I report to the trustees on my examination of the accounts of Royal Society for the Prevention of Cruelty to Animals Nottingham and Notts Branch for the year ended 31 December 2021.

Responsibilities and basis of report

As the Charity trustees of Royal Society for the Prevention of Cruelty to Animals Nottingham and Notts Branch you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the Royal Society for the Prevention of Cruelty to Animals Nottingham and Notts Branch'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 Act.

Independent examiner’s statement

Since Royal Society for the Prevention of Cruelty to Animals Nottingham and Notts Branch's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of The Institute of Chartered Accountants of 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 cause to believe that in any material respect:

  1. accounting records were not kept in respect of Royal Society for the Prevention of Cruelty to Animals Nottingham and Notts Branch as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting 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.

...................................... Neil Coupland FCA DChA The Institute of Chartered Accountants of England and Wales

Northgate House North Gate New Basford Nottingham NG7 7BQ

23 May 2022

Page 9

Royal Society for the Prevention of Cruelty to Animals Nottingham and Notts Branch

Statement of Financial Activities for the Year Ended 31 December 2021

Note
Income and Endowments from:
Donations and legacies
2
Other trading activities
3
Investment income
4
Total income
Expenditure on:
Raising funds
5
Charitable activities
6
Total expenditure
Gains/losses on investment assets
Net income
Other recognised gains and losses
Other gains/losses
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
23		 Unrestricted
funds
£
253,023
56,954
25,404
335,381
(11,042)
(299,048)
(310,090)
97,147
122,438
98,455
220,893
1,453,941
1,674,834		 Restricted
funds
£
13,672
-
-
13,672
-
(13,672)
(13,672)
-
-
-
-
-
-		 Total
2021
£
266,695
56,954
25,404
349,053
(11,042)
(312,720)
(323,762)
97,147
122,438
98,455
220,893
1,453,941
1,674,834

The notes on pages 13 to 29 form an integral part of these financial statements. Page 10

Royal Society for the Prevention of Cruelty to Animals Nottingham and Notts Branch

Statement of Financial Activities for the Year Ended 31 December 2021

Note
Income and Endowments from:
Donations and legacies
2
Other trading activities
3
Investment income
4
Total income
Expenditure on:
Raising funds
5
Charitable activities
6
Total expenditure
Gains/losses on investment assets
Net expenditure
Other recognised gains and losses
Gains/losses on revaluation of fixed assets for
charity's own use
Other gains/losses
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
23		 Unrestricted
funds
£
225,309
35,001
21,342
281,652
(7,744)
(364,996)
(372,740)
(9,983)
(101,071)
124,000
1,782
24,711
1,429,230
1,453,941		 Restricted
funds
£
4,700
-
-
4,700
-
(4,700)
(4,700)
-
-
-
-
-
-
-		 Total
2020
£
230,009
35,001
21,342
286,352
(7,744)
(369,696)
(377,440)
(9,983)
(101,071)
124,000
1,782
24,711
1,429,230
1,453,941

All of the Charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2020 is shown in note 23.

The notes on pages 13 to 29 form an integral part of these financial statements. Page 11

Royal Society for the Prevention of Cruelty to Animals Nottingham and Notts Branch

(Registration number: 255763) Balance Sheet as at 31 December 2021

Note
Fixed assets
Tangible assets
15
Investments
16
Current assets
Stocks
17
Debtors
18
Cash at bank and in hand
19
Creditors: Amounts falling due within one year
20
Net current assets
Net assets
Funds of the Charity:
Unrestricted income funds
Unrestricted funds
Total funds
23		 2021
£
294,339
1,113,601
1,407,940
1,030
20,096
263,751
284,877
(17,983)
266,894
1,674,834
1,674,834
1,674,834		 2020
£
303,334
804,519
1,107,853
1,030
175,569
186,595
363,194
(17,106)
346,088
1,453,941
1,453,941
1,453,941

The financial statements on pages 10 to 29 were approved by the trustees, and authorised for issue on 23 May 2022 and signed on their behalf by:

L E Cook

L E Cook (Jun 6, 2022 11:44 GMT+1) ......................................... Mrs L Cook Treasurer Trustee

Kerry Grinrod (Jun 6, 2022 22:39 GMT+1) ......................................... Miss K Grinrod Chair Trustee

The notes on pages 13 to 29 form an integral part of these financial statements. Page 12

Royal Society for the Prevention of Cruelty to Animals Nottingham and Notts Branch

Notes to the Financial Statements for the Year Ended 31 December 2021

1 Accounting policies

Statement of compliance

The financial statements have been prepared in accordance with the second edition of the Charities Statement of Recommended Practice issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.

The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following the 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 issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

Basis of preparation

Royal Society for the Prevention of Cruelty to Animals Nottingham and Notts Branch meets the definition of a public benefit entity under FRS 102. The accounts (financial statements) 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.

Exemption from preparing a cash flow statement

The Charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.

Going concern

The trustees consider that there are no material uncertainties about the Charity's ability to continue as a going concern.

Income and endowments

Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the Charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.

Donations and legacies

Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.

Grants receivable

Grants are recognised when the Charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.

Gifts in kind

Gifts in kind donated for distribution are included at valuation and recognised as income when they are distributed to the projects. Gifts donated for resale are included as income when they are sold. Donated facilities are included at the value to the Charity where this can be quantified and a third party is bearing the cost. No amounts are included in the financial statements for services donated by volunteers.

Page 13

Royal Society for the Prevention of Cruelty to Animals Nottingham and Notts Branch

Notes to the Financial Statements for the Year Ended 31 December 2021

Gift aid

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Investment income

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Raising funds

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

Charitable activities

Direct charitable expenditure consists of boarding, treatment, spaying and general animal welfare costs, associated establishment costs, and wage costs relating to the caring of the animals. Fundraising costs are those incurred in seeking voluntary contributions. Support costs are those Incurred directly in support of expenditure on the objects of the Charity and include relevant salaries and wages. Governance costs are those incurred in connection with administration of the Charity and compliance with constitutional and statutory requirements.

Support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

Governance costs

These include the costs attributable to the Charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Page 14

Royal Society for the Prevention of Cruelty to Animals Nottingham and Notts Branch

Notes to the Financial Statements for the Year Ended 31 December 2021

Taxation

The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Tangible fixed assets

Individual fixed assets costing £1,000.00 or more are initially recorded at cost.

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class Depreciation method and rate
Freehold property 2% per annum of cost
Motor vehicles 33% per annum of cost
Fixtures and fittings 33% per annum of cost

Fixed asset investments

Fixed asset investments, other than programme related investments, are included at market value at the balance sheet date. Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the Statement of Financial Activities in the period of disposal.

Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at the year end.

Stock

Stock is valued at the lower of cost and estimated selling price less costs to complete and sell, after due regard for obsolete and slow moving stocks. Cost is determined using the first-in, first-out (FIFO).

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the Charity will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Page 15

Royal Society for the Prevention of Cruelty to Animals Nottingham and Notts Branch

Notes to the Financial Statements for the Year Ended 31 December 2021

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the Charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the Charity.

Designated funds are unrestricted funds set aside for specific purposes at the discretion of the trustees.

Pensions and other post retirement obligations

The Charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the Charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification

Financial assets and financial liabilities are recognised when the Charity becomes a party to the contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Charity after deducting all of its liabilities.

Page 16

Royal Society for the Prevention of Cruelty to Animals Nottingham and Notts Branch

Notes to the Financial Statements for the Year Ended 31 December 2021

Recognition and measurement

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the Charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the Charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the Charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

Investments

Investments in non-convertible preference shares and non-puttable ordinary or preference shares (where shares are publicly traded or their fair value is reliably measurable) are measured at fair value through profit or loss. Where fair value cannot be measured reliably, investments are measured at cost less impairment.

Investments in subsidiaries and associates are measured at cost less impairment. For investments in subsidiaries acquired for consideration including the issue of shares qualifying for merger relief, cost is measured by reference to the nominal value of the shares issued plus fair value of other consideration. Any premium is ignored.

Fair value measurement

The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique.

Page 17

Royal Society for the Prevention of Cruelty to Animals Nottingham and Notts Branch

Notes to the Financial Statements for the Year Ended 31 December 2021

2 Income from donations and legacies

Donations and legacies;
Donations from individuals
Legacies
Gift aid reclaimed
Grants, including capital grants;
Government grants
Donations and legacies;
Donations from individuals
Legacies
Gift aid reclaimed
Grants, including capital grants;
Government grants		 Unrestricted
funds
General
£
26,164
171,814
210
54,835
253,023
Unrestricted
funds
General
£
29,108
133,080
226
62,895
225,309		 Restricted
funds
£
13,672
-
-
-
13,672
Restricted
funds
£
4,700
-
-
-
4,700		 Total
2021
£
39,836
171,814
210
54,835
266,695
Total
2020
£
33,808
133,080
226
62,895
230,009

3 Income from other trading activities

Trading income;
Shop income from sale of donated goods and services
Sales of goods and services
Membership subscriptions		 Unrestricted
funds
General
£
55,005
1,146
803
56,954		 Total
2021
£
55,005
1,146
803
56,954

Page 18

Royal Society for the Prevention of Cruelty to Animals Nottingham and Notts Branch

Notes to the Financial Statements for the Year Ended 31 December 2021

Trading income;
Shop income from sale of donated goods and services
Sales of goods and services
Membership subscriptions
4
Investment income
Other investment income
Interest receivable and similar income;
Interest receivable on bank deposits
Other investment income		 Unrestricted
funds
General
£
33,893
627
481
35,001
Unrestricted
funds
General
£
25,404
25,404
Unrestricted
funds
General
£
319
21,023
21,342		 Total
2020
£
33,893
627
481
35,001
Total
2021
£
25,404
25,404
Total
2020
£
319
21,023
21,342

5 Expenditure on raising funds

a) Investment management costs

Note
Other investment management costs;
Other portfolio management costs		 Unrestricted
funds
General
£
11,042
11,042		 Total
2021
£
11,042
11,042		 Total
2020
£
7,744
7,744

Page 19

Royal Society for the Prevention of Cruelty to Animals Nottingham and Notts Branch

Notes to the Financial Statements for the Year Ended 31 December 2021

6 Expenditure on charitable activities

Staff costs
Depreciation
Animal welfare and treatments
Establishment costs
General costs
Staff costs
Depreciation
Animal welfare and treatments
Establishment costs
General costs		 Unrestricted
funds
General
£
105,069
1,800
56,369
9,772
10,313
183,323
Unrestricted
funds
General
£
91,455
1,200
118,274
11,797
13,756
236,482		 Restricted
funds
£
-
-
13,672
-
-
13,672
Restricted
funds
£
-
-
4,700
-
-
4,700		 Total
2021
£
105,069
1,800
70,041
9,772
10,313
196,995
Total
2020
£
91,455
1,200
122,974
11,797
13,756
241,182

Total expenditure on charitable activities

Reception, boarding and care of strays
Total for 2020		 Activity
undertaken
directly
£
196,995
241,182		 Activity
support costs
£
115,725
128,514		 Total
expenditure
£
312,720
369,696

Page 20

Royal Society for the Prevention of Cruelty to Animals Nottingham and Notts Branch

Notes to the Financial Statements for the Year Ended 31 December 2021

7 Analysis of governance and support costs

Support costs allocated to charitable activities

Reception, boarding and care of strays

Reception, boarding and care of strays

Basis of allocation
Basis of allocation		 Governance
costs
£
19,658
Governance
costs
£
18,380		 Staff costs
£
68,825
Staff costs
£
70,301		 Administration
costs
£
13,318
Administration
costs
£
14,713		 Premises costs
including
depreciation
£
9,724
Premises costs
including
depreciation
£
22,320		 Other support
costs
£
4,200
Other support
costs
£
2,800		 Total
2021
£
115,725
Total
2020
£
128,514

Basis of allocation

Reference

Method of allocation

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities, Support costs include back office Reception, boarding costs, finance, personnel, payroll and governance costs which support the trusts charitable activities. These costs have been allocated between the cost of and care of strays direct costs and support costs on an individual basis, where overheads have been incurred which relate to both direct and support costs and fixed method of apportionment has been used.

Page 21

Royal Society for the Prevention of Cruelty to Animals Nottingham and Notts Branch

Notes to the Financial Statements for the Year Ended 31 December 2021

Governance costs

Independent examiner fees
Examination of the financial statements
Other fees paid to examiners
Legal fees
Independent examiner fees
Examination of the financial statements
Other fees paid to examiners
Legal fees		 Unrestricted
funds
General
£
2,310
15,984
1,364
19,658
Unrestricted
funds
General
£
2,250
15,370
760
18,380		 Total
2021
£
2,310
15,984
1,364
19,658
Total
2020
£
2,250
15,370
760
18,380

8 Government grants

The charity has received support grants from local authorities and has benefited from the Coronavirus Job Support Scheme (CJRS) from central government.

The amount of grants recognised in the financial statements was £54,835 (2020 - £62,895).

9 Net incoming/outgoing resources

Net incoming/(outgoing) resources for the year include:

Depreciation of fixed assets
Revaluation of freehold property		 2021
£
(8,995)
-		 2020
£
(7,462)
124,000

10 Trustees remuneration and expenses

No trustees, nor any persons connected with them, have received any remuneration from the Charity during the year.

No trustees have received any reimbursed expenses or any other benefits from the charity during the year.

Page 22

Royal Society for the Prevention of Cruelty to Animals Nottingham and Notts Branch

Notes to the Financial Statements for the Year Ended 31 December 2021

11 Staff costs

The aggregate payroll costs were as follows:

Staff costs during the year were:
Wages and salaries
Social security costs
Pension costs		 2021
£
162,568
7,782
3,944
174,294		 2020
£
152,053
6,542
3,602
162,197

The monthly average number of persons (including senior management / leadership team) employed by the Charity during the year expressed as full time equivalents was as follows:

Charitable activities
Management and administration		 2021
No
6
4
10		 2020
No
5
5
10

No employee received emoluments of more than £60,000 during the year

The number of hours of time donated by general volunteers during the year is approximately 1,091 hours (2020: 195 hours). This has an approximate value of £9,669 (2020: £1,700) to the charity.

12 Independent examiner's remuneration

12 Independent examiner's remuneration
Examination of the financial statements
Other fees to examiners
All other services
13 Exceptional item		 2021
£
2,310
15,984		 2020
£
2,250
15,370

The investment held in Kaupthing Singer & Friedlander was provided against in full during the year ended 31 December 2008, due to the bank going into administration on 8 October 2008. The Charity has received compensation of £1,366 during the year (2020: £1,782) which has been classified as an exceptional item in the statement of financial activities.

14 Taxation

The Charity is a registered charity and is therefore exempt from taxation.

Page 23

Royal Society for the Prevention of Cruelty to Animals Nottingham and Notts Branch

Notes to the Financial Statements for the Year Ended 31 December 2021

15 Tangible fixed assets

Cost
At 1 January 2021
At 31 December 2021
Depreciation
At 1 January 2021
Charge for the year
At 31 December 2021
Net book value
At 31 December 2021
At 31 December 2020		 Land and
buildings
£
300,000
300,000
-
6,000
6,000
294,000
300,000		 Furniture and
equipment
£
28,686
28,686
25,352
2,995
28,347
339
3,334		 Motor vehicles
£
11,258
11,258
11,258
-
11,258
-
-		 Total
£
339,944
339,944
36,610
8,995
45,605
294,339
303,334

Revaluation

The fair value of the company's Land and buildings was revalued on 24 May 2021 by David Bladen BSc (Hons) MRICS Registered Valuer, of Musson Liggins, an independent valuer.

The freehold property was valued on an open market basis, assuming vacant possession, and the trustees believe that the valuation is appropriate for inclusion in the accounts as at 31 December 2021. Had this class of asset been measured on a historical cost basis, their carrying amount would have been £108,198 (2020 - £109,311).

16 Fixed asset investments

16 Fixed asset investments
2021 2020
£ £
Other investments 1,113,601 804,519

Page 24

Royal Society for the Prevention of Cruelty to Animals Nottingham and Notts Branch

Notes to the Financial Statements for the Year Ended 31 December 2021

Other investments
Cost or Valuation
At 1 January 2021
Revaluation
Additions
Disposals
At 31 December 2021
Net book value
At 31 December 2021
At 31 December 2020
17 Stock
Stocks
18 Debtors
Trade debtors
Prepayments
Accrued income
Other debtors
19 Cash and cash equivalents
Cash on hand
Cash at bank		 Listed
investments
£
777,329
97,147
286,045
(85,774)
1,074,747
1,074,747
777,329		 Listed
investments
£
777,329
97,147
286,045
(85,774)
1,074,747
1,074,747
777,329		 Unlisted
investments
£
27,190
-
11,664
-		 Total
£
804,519
97,147
297,709
(85,774)
1,113,601
1,113,601
804,519
2020
£
1,030
1,074,747 38,854
1,074,747 38,854
777,329 27,190
2021
£
1,030
2021
£
-
16,238
817
3,041
20,096
2021
£
758
262,993
263,751
2020
£
1,093
20,828
817
152,831
175,569
2020
£
833
185,762
186,595

Page 25

Royal Society for the Prevention of Cruelty to Animals Nottingham and Notts Branch

Notes to the Financial Statements for the Year Ended 31 December 2021

20 Creditors: amounts falling due within one year

20 Creditors: amounts falling due within one year
Trade creditors
Other taxation and social security
VAT grant repayable
Other creditors
Accruals		 2021
£
11,723
2,799
(2,232)
725
4,968
17,983		 2020
£
7,807
2,098
(633)
868
6,966
17,106

21 Obligations under leases and hire purchase contracts

Operating lease commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

Other
Within one year
Between one and five years		 2021
£
7,790
5,049
12,839		 2020
£
3,453
6,452
9,905

Lease payments recognised as an expense during the year totalled £12,965 (2020; £3,677).

22 Pension and other schemes

Defined contribution pension scheme

The Charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the Charity to the scheme and amounted to £3,944 (2020 - £3,602).

Page 26

Royal Society for the Prevention of Cruelty to Animals Nottingham and Notts Branch

Notes to the Financial Statements for the Year Ended 31 December 2021

23 Funds

Unrestricted funds
General
Designated
Total unrestricted funds
Restricted funds
Total funds
Included in unrestricted funds is a
Unrestricted funds
General
Designated
Total unrestricted funds
Restricted funds
Total funds		 Balance at 1
January
2021
£
953,941
500,000
1,453,941
-
1,453,941
revaluation rese
Balance at 1
January
2020
£
929,230
500,000
1,429,230
-
1,429,230		 Incoming
resources
£
Resources
expended
£
Other
recognised
gains/(losses)
£
335,381
(310,090)
195,602
-
-
-
335,381
(310,090)
195,602
13,672
(13,672)
-
349,053
(323,762)
195,602
rve of £185,802 (2020: £190,689).
Incoming
resources
£
Resources
expended
£
Other
recognised
gains/(losses)
£
281,652
(372,740)
115,799
-
-
-
281,652
(372,740)
115,799
4,700
(4,700)
-
286,352
(377,440)
115,799		 Balance at
31
December
2021
£
1,174,834
500,000
1,674,834
-
1,674,834
Balance at
31
December
2020
£
953,941
500,000
1,453,941
-
1,453,941

The specific purposes for which the funds are to be applied are as follows:

The designated fund represents amounts set aside by the Trustees for specific future projects, which continue to be under review.

The restricted funds represents donations received towards the cost of spaying, veterinary charges, emergency boarding, and sick and injured animals. Donations are also made to local animal shelters in the form of boarding fees for taking in and caring of animals on behalf of the Branch. There are no assets or liabilities representing these funds at the year end as transfers are made from unrestricted funds to cover the full cost as shown in the Statement of Financial Activities.

Page 27

Royal Society for the Prevention of Cruelty to Animals Nottingham and Notts Branch

Notes to the Financial Statements for the Year Ended 31 December 2021

24 Analysis of net assets between funds

Tangible fixed assets
Fixed asset investments
Current assets
Current liabilities
Total net assets
Tangible fixed assets
Fixed asset investments
Current assets
Current liabilities
Total net assets
25 Analysis of net funds
Cash at bank and in hand
Net debt		 Unrestricted funds
General
£
Designated
£
108,537
185,802
1,113,601
-
284,877
-
(17,983)
-
1,489,032
185,802
Unrestricted funds
General
£
Designated
£
112,645
190,689
804,519
-
363,194
-
(17,106)
-
1,263,252
190,689
At 1 January
2021
£
Financing cash
flows
£
186,595
77,156
186,595
77,156		 Total funds at
31 December
2021
£
294,339
1,113,601
284,877
(17,983)
1,674,834
Total funds at
31 December
2020
£
303,334
804,519
363,194
(17,106)
1,453,941
At 31
December
2021
£
263,751
263,751

Page 28

Royal Society for the Prevention of Cruelty to Animals Nottingham and Notts Branch

Notes to the Financial Statements for the Year Ended 31 December 2021

26 Related party transactions

During the year the Charity made the following related party transactions:

RSPCA Head Office

Within the year £24,134 (2020: £25,173) was received relating to Head Office Contribution and £59 (2020: £263) related to purchases for the branch shop.

At the balance sheet date the amount due to/from RSPCA Head Office was £Nil (2020 - £Nil).

RSPCA Regional Contribution

The charity contributed £1,378 (2020: £35,173) to RSPCA regional funds.

At the balance sheet date the amount due to/from RSPCA Regional Contribution was £Nil (2020 - £Nil).

RSPCA Stapeley Grange Wildlife Centre and Cattery

In the year the charity contributed £Nil (2020: £3,182) to RSPCA Stapeley Grange Wildlife Centre and Cattery.

At the balance sheet date the amount due to/from RSPCA Stapeley Grange Wildlife Centre and Cattery was £Nil (2020 - £Nil).

RSPCA Radcliffe Shelter

In the year the charity contributed £42,055 (2020: £32,913) towards boarding fees and the veterinary suite.

At the balance sheet date the amount due to/from RSPCA Radcliffe Shelter was £Nil (2020 - £Nil).

Page 29