CHARITY REGISTRATION NUMBER: 256728
Pine Ridge Dog Sanctuary Financial Statements 31 December 2021
BURGESS HODGSON LLP
Chartered accountants & statutory auditor Camburgh House 27 New Dover Road Canterbury Kent CT1 3DN
Pine Ridge Dog Sanctuary
Financial Statements
Year ended 31 December 2021
| Page | |
|---|---|
| Trustees' annual report | 1 |
| Independent auditor's report to the members | 7 |
| Statement of financial activities | 11 |
| Statement of financial position | 12 |
| Statement of cash flows | 13 |
| Notes to the financial statements | 14 |
Pine Ridge Dog Sanctuary
Trustees' Annual Report
Year ended 31 December 2021
The trustees present their report and the financial statements of the charity for the year ended 31 December 2021.
Reference and administrative details
Registered charity name Pine Ridge Dog Sanctuary Charity registration number 256728 Principal office Pine Ridge Farm Priory Road Ascot SL5 8RJ The trustees C E Cuff J C Vernor-miles W E Vernor-miles S Whitehead Auditor Burgess Hodgson LLP Chartered accountants & statutory auditor Camburgh House 27 New Dover Road Canterbury Kent CT1 3DN
1
Pine Ridge Dog Sanctuary
Trustees' Annual Report (continued)
Year ended 31 December 2021
Structure, governance and management
Governing document
The charity is governed by its governing document, a deed of trust and constitutes an unincorporated charity. The trust was established by a declaration of Charitable Trust dated 20 November 1969 by Bernard Cuff and others. The original trust deed has been varied by a scheme of the Charity Commission dated 1 April 2004. The trust deed as amended provides that no part of the Trust shall be treated as permanent endowment and the trustees have unlimited powers of investment. The trustees have power to act by a majority and there shall always be not less than four trustees. The power of appointing new trustees was originally vested in the founder, Bernard Cuff, but now following his death, is now vested in the trustees. The trustees are subject to rotation under the terms of the Trust Deed.
Organisational structure
The trustees are responsible for the general governance of the charity and meets at least twice each year to manage and review the Charity's activities and achievements. Day to day responsibility for running the charity rests with the Chairperson along with the Service Manager. The Chairperson has responsibility for:
"Service delivery, staff skills development and good working practices"
The Service Manager is responsible for the day-to-day operational management and the supervision of operation staff.
Induction and training of new trustees
The Chairperson is responsible for the induction and training of new charity's trustees. They would be provided with a copy of the Charity's governing documents, annual report, and financial statements for the previous three years, together with the minutes of the trustees' meetings for the same period and the Charity Commission's documents relating to the responsibilities of charity trustees. They would be offered advice from the Charity's solicitors on their responsibilities and rights as trustees of of the Charity. Further the Chairperson would explain how the Charity is run on a day-to-day level and how it is managed by its trustees.
Related parties
The Charity is not part of a wider network. It works on an arm's length basis with other animal charities and organisations.
The Chairperson (Mrs C E Cuff) lives at Brakenholme, a property leased to her by the Charity. It is in exchange for a lease granted by the Trustees of the Bernard Cuff Will Trust on Pine Ridge Farm House, which is used as the Charity's operational headquarters.
The Service Manager and one of the Charity's employees live on the premises rented by the Charity.
Risk management
The trustees have reviewed the risks to which the Charity is exposed and consider that they have established sufficient systems and procedures to mitigate those risks. There are procedures in place to ensure compliance with health and safety of staff and visitors to the sanctuary.
2
Pine Ridge Dog Sanctuary
Trustees' Annual Report (continued)
Year ended 31 December 2021
Objectives and activities
The purposes of the charity are set out in its trust deed are:-
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The promotion of kindness or the prevention of cruelty to animals, and
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In particular those animals accustomed to the companionship of and dependent for their welfare upon human beings.
The Charity's principal activity is the operation of a dog rescue and re-homing centre in Berkshire. In addition, we support other charities and organisations elsewhere in England and Wales and overseas, whose objectives match ours by the provision of services and financial support. The area of land rented by the Charity is large enough to contain adequate kennelling for over one-hundred animals. However, due to legal and planning restrictions, the charity is unable to re-home and treat as many animals as it has capacity to do.
Public Benefit
The Trustees consider that the Charity's Activities, as set out in its aims and objectives detailed above, are for the public benefit. The Trustees confirm that they have complied with their duty under S17(5) of the Charities Act 2011 to have due regard to the guidance published by the Charity Commission.
Grants
The Charity has a policy since 1996 of making grants and donations to other Animal Welfare Organisations, details of which are given in the Financial Statements.
Volunteers
The Charity had no volunteer assistance during the year
3
Pine Ridge Dog Sanctuary
Trustees' Annual Report (continued)
Year ended 31 December 2021
Achievements and performance
Charitable activities
The goal of the Charity over the past year continued to be to take in abandoned and unwanted dogs, provide them with any medical treatment required, and to re-home them after they had first been spayed or neutered. During 2021, the Sanctuary received a total of 198 (238 in 2020) dogs for care and attention. All animals were inoculated and spayed or neutered and given other veterinary treatment as necessary - in some cases after the dogs had been adopted by new owners. During 2021, 194 dogs were accepted for adoption by new owners, 4 animals had to be put to sleep on the advice of a veterinary surgeon, no dogs were returned to owners and the remaining 3 dogs were kept in the Sanctuary at 31 December 2021. The Charity continued its outreach programme by providing funding and services to other charities and organisations in England and Wales. In addition to the above figures, 204 dogs were spayed and neutered.
Investment Performance
The Charity's investment policy and objectives are formally agreed by the trustees annually. They are advised by their professional fund managers, whose recommendations are subject to the trustees' review.
During the year the charity disposed of investments which included redemption of loan stock. The purchases were £553,370 and the annual revaluation saw a gain of £1,159,849 representing an increase in value of 13.6% in the year. Proceeds from the sale of investments were £103,961 and there was a loss of £3,048 on disposals.
4
Pine Ridge Dog Sanctuary
Trustees' Annual Report (continued)
Year ended 31 December 2021
Financial review
Financial position
Charity's funds increased from £9,070,078 by £1,872,300 of which £1,159,849 was net gain on investments.
Investments policy and objectives
The Charity's governing policy places no restrictions on the discretion of the trustees in investing the Charity's assets.
The Charity has significant current and expected interests in real property and it is the policy of the trustees to invest in non-functional assets in financial instruments as follows:
"maintain sufficient cash to meet the Charity's short and medium term requirements; and"
"invest the remainder in a mixture of bonds (Government-issued or corporate) and worldwide equities (including collective investments) to achieve a balanced return in the long term between accumulated income and capital appreciation.
Aside from cash on deposit, the Charity's financial investments are held by the Charity's investment advisers. The trustees take advice from their investment advisers on their investment strategy and on all investment decisions. The trustees must exercise care and skill when making investment decisions and select investments that are right for Charity, including the need to diversify the Charity's investments. the investments are reviewed by correspondence at least four times a year and at each trustee's meeting. Each review of the Charity' investments includes a review of the investment advisor's advice, how the Charity's investment are performing and of the service provided by the Charity's investment advisor.
The Charity does not follow and ethical investment policy.
Reserves policy
The trustees' reserve policy is to have sufficient free reserves to cover the following:
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Five years' future charitable activities expenditure.
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To provide for maintenance and replacement of its existing resources and to any planned expansion.
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To provide an income sufficient to meet not less than 50% of the Charity's annual costs.
Based on the above, the estimated expenditure for the next five years:
-
For charitable activity is £2,030,360 and
-
For long-term renewal and maintenance of operating tangible assets it is £1,000,000.
Therefore, there appears to be a surplus of £7,912,018. However, Future income from donations and legacies is expected to drop. The current investment income does cover 54% of the charity’s annual costs (2020: 44%).
Future plans
The charity expects to be able to continue at least at the same level of activity for 2022 as in the previous year and does not anticipate any fall in the Charity's annual turnover. The number of dogs
5
Pine Ridge Dog Sanctuary
Trustees' Annual Report (continued)
Year ended 31 December 2021
being re-homed by the Charity has fallen in recent years, largely due success of the Charity in it spay/neuter activities in South Wales, where the number of abandoned dogs has fallen. The Charity will continue to invest in the maintenance and replacement of existing dog runs and kennels. The Trustees will also continue their policy of supporting other Charities and programmes established for like purposes.
Trustees' responsibilities statement
The trustees are responsible for preparing the trustees' 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 and Wales requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, of the charity for that period.
In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the applicable Charities SORP;
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and 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 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.
The trustees' annual report was approved on .............................. and signed on behalf of the board of trustees by:
W E Vernor-miles Trustee
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Pine Ridge Dog Sanctuary
Independent Auditor's Report to the Members of Pine Ridge Dog Sanctuary
Year ended 31 December 2021
Opinion
We have audited the financial statements of Pine Ridge Dog Sanctuary (the 'charity') for the year ended 31 December 2021 which comprise the statement of financial activities, statement of financial position, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law 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:
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give a true and fair view of the state of the charity's affairs as at 31 December 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
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have been prepared in accordance with the requirements of the Charities Act 2011.
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.
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Pine Ridge Dog Sanctuary
Independent Auditor's Report to the Members of Pine Ridge Dog Sanctuary (continued)
Year ended 31 December 2021
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report.
We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:
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the information given in the trustees' report is inconsistent in any material respect with the financial statements; or
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adequate accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the trustees' responsibilities statement, the trustees are responsible for the preparation of the financial statements and for being satisfied that they 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.
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Pine Ridge Dog Sanctuary
Independent Auditor's Report to the Members of Pine Ridge Dog Sanctuary (continued)
Year ended 31 December 2021
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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered; the nature of the industry, control environment and business performance with particular reference to any remuneration or related party transactions involving trustees.
We also consider the results of our enquiries of management, relating totheir own identification and assessment of the risks of irregularities and possible related fraud. This includes reviewing available documentation on their policies and procedures and performing tests of controls to evidence their effectiveness.
Throughout the audit testing we are considering the incentives that may exist within the organisation for fraud. Key areas include timing of recognising income around the year end, posting of unusual journals and the correct use of restricted funds. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We ensure we have an understanding of the relevant laws and regulations and remain alert to possible non-compliance throughout the audit.
Despite proper planning and audit work in accordance with auditing standards there are inherent limitations and unavoidable risk that we may not detect some irregularities and material misstatements in the financial statements. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
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Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
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Pine Ridge Dog Sanctuary
Independent Auditor's Report to the Members of Pine Ridge Dog Sanctuary (continued)
Year ended 31 December 2021
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Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
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Conclude on the appropriateness of the trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern.
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Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Use of our report
This report is made solely to the charity's members, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's members 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 members as a body, for our audit work, for this report, or for the opinions we have formed.
Andrew Collyer (Senior Statutory Auditor)
For and on behalf of Burgess Hodgson LLP Chartered accountants & statutory auditor Camburgh House 27 New Dover Road Canterbury Kent CT1 3DN 04/10/2022
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Pine Ridge Dog Sanctuary
Statement of Financial Activities
Year ended 31 December 2021
| 2021 | 2021 | 2020 | ||
|---|---|---|---|---|
| Unrestricted | ||||
| funds | Total funds | Total funds | ||
| Note | £ | £ | £ | |
| Income and endowments | ||||
| Donations and legacies | 4 | 911,167 | 911,167 | 852,602 |
| Investment income | 5 | 207,356 | 207,356 | 166,389 |
| ----------------------------------------- | ----------------------------------------- | ----------------------------------------- | ||
| Total income | 1,118,523 | 1,118,523 | 1,018,991 | |
| ========================================= | ========================================= | ========================================= | ||
| Expenditure | ||||
| Expenditure on raising funds: | ||||
| Investment management costs | 6 | 29,772 | 29,772 | 27,548 |
| Expenditure on charitable activities | 7,8 | 376,300 | 376,300 | 384,190 |
| ----------------------------------------- | ----------------------------------------- | ----------------------------------------- | ||
| Total expenditure | 406,072 | 406,072 | 411,738 | |
| ========================================= | ========================================= | ========================================= | ||
| Net gains on investments | 11 | 1,159,849 | 1,159,849 | 561,262 |
| ----------------------------------------- | ----------------------------------------- | ----------------------------------------- | ||
| Net income and net movement in funds | 1,872,300 | 1,872,300 | 1,168,515 | |
| ========================================= | ========================================= | ========================================= | ||
| Reconciliation of funds | ||||
| Total funds brought forward | 9,070,078 | 9,070,078 | 7,901,563 | |
| ---------------------------------------------- | ---------------------------------------------- | ----------------------------------------- | ||
| Total funds carried forward | 10,942,378 | 10,942,378 | 9,070,078 | |
| ============================================== | ============================================== | ========================================= |
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The notes on pages 14 to 22 form part of these financial statements.
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Pine Ridge Dog Sanctuary
Statement of Financial Position
31 December 2021
| 2021 | 2020 | ||
|---|---|---|---|
| Note | £ | £ | |
| Fixed assets | |||
| Tangible fixed assets | 16 | 59,929 | 65,639 |
| Investments | 17 | 10,140,518 | 8,531,260 |
| ---------------------------------------------- | ----------------------------------------- | ||
| 10,200,447 | 8,596,899 | ||
| Current assets | |||
| Debtors | 18 | 305,768 | 250,000 |
| Cash at bank and in hand | 446,698 | 258,706 | |
| -------------------------------- | -------------------------------- | ||
| 752,466 | 508,706 | ||
| Creditors: amounts falling due within one year | 19 | 10,535 | 35,527 |
| -------------------------------- | -------------------------------- | ||
| Net current assets | 741,931 | 473,179 | |
| ---------------------------------------------- | ----------------------------------------- | ||
| Total assets less current liabilities | 10,942,378 | 9,070,078 | |
| ---------------------------------------------- | ----------------------------------------- | ||
| Net assets | 10,942,378 | 9,070,078 | |
| ============================================== | ========================================= | ||
| Funds of the charity | |||
| Unrestricted funds | 10,942,378 | 9,070,078 | |
| ---------------------------------------------- | ----------------------------------------- | ||
| Total charity funds | 21 | 10,942,378 | 9,070,078 |
| ============================================== | ========================================= |
These financial statements were approved by the board of trustees and authorised for issue on ........................, and are signed on behalf of the board by:
W E Vernor-miles Trustee
The notes on pages 14 to 22 form part of these financial statements.
12
Pine Ridge Dog Sanctuary
Statement of Cash Flows
Year ended 31 December 2021
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Cash flows from operating activities | ||
| Net income | 1,872,300 | 1,168,515 |
| Adjustments for: | ||
| Depreciation of tangible fixed assets | 6,849 | 10,719 |
| Government grant income | (7,180) | (5,258) |
| Net gains on investments | (1,159,849) | (561,262) |
| Dividends, interest and rents from investments | (207,356) | (166,389) |
| Accrued (income)/expenses | (18,052) | 25,850 |
| Changes in: | ||
| Trade and other debtors | (55,768) | (190,000) |
| Trade and other creditors | (2,808) | (100,074) |
| ----------------------------------------- | ----------------------------------------- | |
| Cash generated from operations | 428,136 | 182,101 |
| -------------------------------- | -------------------------------- | |
| Net cash from operating activities | 428,136 | 182,101 |
| ================================ | ================================ | |
| Cash flows from investing activities | ||
| Dividends, interest and rents from investments | 207,356 | 166,344 |
| Purchase of tangible assets | (1,139) | – |
| Purchases of other investments | (553,370) | (697,401) |
| Proceeds from sale of other investments | 107,009 | 203,892 |
| -------------------------------- | -------------------------------- | |
| Net cash used in investing activities | (240,144) | (327,165) |
| ================================ | ================================ | |
| Cash flows from financing activities | ||
| Government grant income | 7,180 | – |
| -------------------------------- | -------------------------------- | |
| Net cash from financing activities | 7,180 | – |
| ================================ | ================================ | |
| Net increase/(decrease) in cash and cash equivalents | 187,992 | (145,064) |
| Cash and cash equivalents at beginning of year | 258,706 | 403,770 |
| -------------------------------- | -------------------------------- | |
| Cash and cash equivalents at end of year | 446,698 | 258,706 |
| ================================ | ================================ |
The notes on pages 14 to 22 form part of these financial statements.
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Pine Ridge Dog Sanctuary
Notes to the Financial Statements
Year ended 31 December 2021
1. General information
The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is Pine Ridge Dog Sanctuary, Pine Ridge Farm, Ascot, SL5 8RJ.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)) and the Charities Act 2011.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
There are no material uncertainties about the charity's ability to continue.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the statement of financial activities.
Fund accounting
Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.
Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.
Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.
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Pine Ridge Dog Sanctuary
Notes to the Financial Statements (continued)
Year ended 31 December 2021
3. Accounting policies (continued)
Incoming resources
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Resources expended
Liabilities are recognised as expenditure as soon as there is legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings they have been allocated to activities on a basis consistent with the use of resources.
Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant and machinery - 25% reducing balance Kennels - 10% reducing balance
Investments
Unlisted equity investments are initially recorded at cost, and subsequently measured at fair value. If fair value cannot be reliably measured, assets are measured at cost less impairment.
Listed investments are measured at fair value with changes in fair value being recognised in income or expenditure.
Investment property
Investment property is initially recorded at cost, which includes purchase price and any directly attributable expenditure.
Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in income or expenditure.
If a reliable measure of fair value is no longer available without undue cost or effort for an item of investment property, it shall be transferred to tangible assets and treated as such until it is expected that fair value will be reliably measurable on an on-going basis.
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Pine Ridge Dog Sanctuary
Notes to the Financial Statements (continued)
Year ended 31 December 2021
3. Accounting policies (continued)
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the charity will comply with the conditions attaching to them and the grants will be received.
Where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted. Debt instruments are subsequently measured at amortised cost. Where investments in shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment.
4. Donations and legacies
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2021 | Funds | 2020 | |
| £ | £ | £ | £ | |
| Donations | ||||
| Donations | 99,103 | 99,103 | 71,472 | 71,472 |
| Legacies | ||||
| Legacies | 804,884 | 804,884 | 775,872 | 775,872 |
| Grants | ||||
| Government grant income | 7,180 | 7,180 | 5,258 | 5,258 |
| -------------------------------- | -------------------------------- | -------------------------------- | -------------------------------- | |
| 911,167 | 911,167 | 852,602 | 852,602 | |
| ================================ | ================================ | ================================ | ================================ |
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Pine Ridge Dog Sanctuary
Notes to the Financial Statements (continued)
Year ended 31 December 2021
5. Investment income
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2021 | Funds | 2020 | |
| £ | £ | £ | £ | |
| Dividends | 168,827 | 168,827 | 133,840 | 133,840 |
| Interest | 38,529 | 38,529 | 32,549 | 32,549 |
| -------------------------------- | -------------------------------- | -------------------------------- | -------------------------------- | |
| 207,356 | 207,356 | 166,389 | 166,389 | |
| ================================ | ================================ | ================================ | ================================ | |
| nvestment management costs | ||||
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
| Funds | 2021 | Funds | 2020 | |
| £ | £ | £ | £ | |
| Investment broker fees | 29,772 | 29,772 | 27,548 | 27,548 |
| ============================ | ============================ | ============================ | ============================ |
6. Investment management costs
7. Expenditure on charitable activities by fund type
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2021 | Funds | 2020 | |
| £ | £ | £ | £ | |
| Charitable activities | 257,830 | 257,830 | 276,512 | 276,512 |
| Support costs | 118,470 | 118,470 | 107,678 | 107,678 |
| -------------------------------- | -------------------------------- | -------------------------------- | -------------------------------- | |
| 376,300 | 376,300 | 384,190 | 384,190 | |
| ================================ | ================================ | ================================ | ================================ |
8. Expenditure on charitable activities by activity type
| Activities | |||||
|---|---|---|---|---|---|
| undertaken | Grant funding |
Support | Total funds | Total fund | |
| directly | of activities |
costs | 2021 | 2020 | |
| £ | £ | £ | £ | £ | |
| Charitable activities | 164,153 | 93,677 |
– | 257,830 | 276,512 |
| Governance costs | – | – |
118,470 | 118,470 | 107,678 |
| -------------------------------- | ---------------------------- | -------------------------------- | -------------------------------- | -------------------------------- | |
| 164,153 | 93,677 |
118,470 | 376,300 | 384,190 | |
| ================================ | ============================ | ================================ | ================================ | ================================ |
17
Pine Ridge Dog Sanctuary
Notes to the Financial Statements (continued)
Year ended 31 December 2021
8. Expenditure on charitable activities by activity type (continued)
The above charitable activities include the following direct costs:
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Wages and salaries | 57,994 | 55,133 |
| Transport costs | 2,440 | 4,615 |
| Light, power and heating | 16,059 | 16,372 |
| Internet & website | 2,050 | 1,085 |
| Insurance | 1,741 | 1,430 |
| Straw & general kennel costs | 58,613 | 78,546 |
| Postage & stationery | 2,125 | 4,741 |
| Publishing | 5,237 | 837 |
| Sundry | 18 | 24 |
| Legal and professional fees | 1,984 | 1,575 |
| Telephone | 110 | 4,052 |
| Dog food | 1,065 | 2,480 |
| Depreciation | 6,849 | 10,719 |
| Foreign exchange gain/loss | – | (797) |
| Advertising | 1,716 | 1,637 |
| Rates | 6,152 | 7,461 |
| -------------------------------- | -------------------------------- | |
| 164,153 | 189,910 |
9. Analysis of support costs
| Trustees' | Auditors | Accountancy | Legal | |||
|---|---|---|---|---|---|---|
| expenses | remuneration | fees | fees | Total 2021 | Total 2020 | |
| £ | £ | £ | £ | £ | £ | |
| Governance | ||||||
| costs | 40,000 | 4,000 | 19,104 | 55,366 | 118,470 | 107,678 |
| ============================ | ======================= | ============================ | ============================ | ================================ | ============== |
18
Pine Ridge Dog Sanctuary
Notes to the Financial Statements (continued)
Year ended 31 December 2021
10. Analysis of grants
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Grants to institutions | ||
| Neutering & vaccinations | 22,789 | 44,031 |
| Spanish dogs | 51,353 | 32,065 |
| Other institutions | 19,535 | 10,506 |
| ---------------------------- | ---------------------------- | |
| 93,677 | 86,602 | |
| ---------------------------- | ---------------------------- | |
| Total grants | 93,677 | 86,602 |
| ============================ | ============================ |
11. Net gains on investments
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2021 | Funds | 2020 | |
| £ | £ | £ | £ | |
| Unrealised Gains/(losses) on listed | ||||
| investments | 1,162,897 | 1,162,897 | 565,225 | 565,225 |
| Realise Gains/(losses) on listed | ||||
| investments | (3,048) | (3,048) |
(3,963) | (3,963) |
| ----------------------------------------- | ----------------------------------------- | -------------------------------- | -------------------------------- | |
| 1,159,849 | 1,159,849 | 561,262 | 561,262 | |
| ========================================= | ========================================= | ================================ | ================================ | |
| Net income | ||||
| Net income is stated after charging/(crediting): | ||||
| 2021 | 2020 | |||
| £ | £ | |||
| Depreciation of tangible fixed assets | 6,849 | 10,719 | ||
| Foreign exchange differences | – | (797) | ||
| ======================= | ============================ | |||
| Auditors remuneration | ||||
| 2021 | 2020 | |||
| £ | £ | |||
| Fees payable for the audit of the financial statements | 4,000 | 2,500 | ||
| ======================= | ======================= |
12. Net income
Net income is stated after charging/(crediting):
13. Auditors remuneration
14. Staff costs
| The total staff costs and employee benefits for the reporting period are analysed as | The total staff costs and employee benefits for the reporting period are analysed as | follows: |
|---|---|---|
| 2021 | 2020 | |
| £ | £ | |
| Wages and salaries | 57,994 | 55,133 |
| ============================ | ============================ |
The average head count of employees during the year was 5 (2020: 5).
No employee received employee benefits of more than £60,000 during the year (2020: Nil).
Included in the wages and salaries are social security costs of £3,140 (2020: £22) and pension costs of £797 (2020: £765)
19
Pine Ridge Dog Sanctuary
Notes to the Financial Statements (continued)
Year ended 31 December 2021
15. Trustee remuneration and expenses
The payment to Mrs C E Cuff is in lieu of rent under an order of Section 105 of the Charities Act 2011.
Mrs C E Cuff is authorised to received £40,000 per annum as payment in lieu of rent in her capacity as the sole life tenant of the Bernard Cuff Will Trust, the trustees of which are the freeholders of Pine Ridge Farm. No amounts were outstanding at the year end.
Mr Wilfrid Edward Vernor-Miles is a partner at the firm of Hunters Solicitors. Professional fees (including VAT) paid to Hunters during the year were £55,367 (2020: £42,178). No amounts were outstanding at the year end. At the year-end, Hunters held in their client's current account £28,569 for the charity (2020: £42,178)
The trust deed includes a professional charging clause permitting remuneration of trustees who are professionals.
16. Tangible fixed assets
| Plant and | Fixtures and | ||
|---|---|---|---|
| machinery | fittings | Total | |
| £ | £ | £ | |
| Cost | |||
| At 1 January 2021 | 272,552 | 581,245 | 853,797 |
| Additions | 1,139 | – | 1,139 |
| -------------------------------- | -------------------------------- | -------------------------------- | |
| At 31 December 2021 | 273,691 | 581,245 | 854,936 |
| ================================ | ================================ | ================================ | |
| Depreciation | |||
| At 1 January 2021 | 272,552 | 515,606 | 788,158 |
| Charge for the year | 285 | 6,564 | 6,849 |
| -------------------------------- | -------------------------------- | -------------------------------- | |
| At 31 December 2021 | 272,837 | 522,170 | 795,007 |
| ================================ | ================================ | ================================ | |
| Carrying amount | |||
| At 31 December 2021 | 854 | 59,075 | 59,929 |
| ================================ | ================================ | ================================ | |
| At 31 December 2020 | – | 65,639 | 65,639 |
| ================================ | ================================ | ================================ | |
| Investments | |||
| Listed | Investment | ||
| investments | properties | Total | |
| £ | £ | £ | |
| Cost or valuation | |||
| At 1 January 2021 | 7,906,260 | 625,000 | 8,531,260 |
| Additions | 553,370 | – | 553,370 |
| Disposals | (103,961) | – | (103,961) |
| Fair value movements | 1,159,849 | – | 1,159,849 |
| ----------------------------------------- | -------------------------------- | ---------------------------------------------- | |
| At 31 December 2021 | 9,515,518 | 625,000 | 10,140,518 |
| ========================================= | ================================ | ============================================== | |
| Impairment | |||
| At 1 January 2021 and 31 December 2021 | – | ||
| ============================================== | |||
| Carrying amount | |||
| At 31 December 2021 | 9,515,518 | 625,000 | 10,140,518 |
| ========================================= | ================================ | ============================================== | |
| At 31 December 2020 | 7,906,260 | 625,000 | 8,531,260 |
| ========================================= | ================================ | ============================================== |
17. Investments
All investments shown above are held at valuation.
20
Pine Ridge Dog Sanctuary
Notes to the Financial Statements (continued)
Year ended 31 December 2021
18. Debtors
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Other debtors | 305,768 | 250,000 |
| ================================ | ================================ |
Included within Other debtors are estimated legacy entitlements amounting to £287,000 (2020: £250,000)
19. Creditors: amounts falling due within one year
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Accruals and deferred income | 7,798 | 25,850 |
| Social security and other taxes | 2,737 | 9,677 |
| ---------------------------- | ---------------------------- | |
| 10,535 | 35,527 | |
| ============================ | ============================ |
20. Government grants
The amounts recognised in the financial statements for government grants are as follows:
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Recognised in income from donations and legacies: | ||
| Government grants income | 7,180 | 5,258 |
| ======================= | ======================= |
21. Analysis of charitable funds
Unrestricted funds
| At | ||||||||
|---|---|---|---|---|---|---|---|---|
| At | Gains and | 31 | December | |||||
| 1 | January 2021 | Income | Expenditure | losses | 2021 | |||
| £ | £ | £ | £ | £ | ||||
| General funds | 9,070,078 | 1,118,523 | (406,072) | 1,159,849 | 10,942,378 | |||
| ========================================= | ========================================= | ================================ | ========================================= | ============================================== | ||||
| At | ||||||||
| At | Gains and | 31 December |
||||||
| 1 | January 2020 | Income | Expenditure | losses | 2020 | |||
| £ | £ | £ | £ | £ | ||||
| General funds | 7,901,563 | 1,018,991 | (411,738) | 561,262 | 9,070,078 | |||
| ========================================= | ========================================= | ================================ | ================================ | ========================================= |
21
Pine Ridge Dog Sanctuary
Notes to the Financial Statements (continued)
Year ended 31 December 2021
22. Analysis of net assets between funds
| Unrestricted | Total Funds | |
|---|---|---|
| Funds | 2021 | |
| £ | £ | |
| Tangible fixed assets | 59,929 | 59,929 |
| Investments | 10,140,518 | 10,140,518 |
| Current assets | 752,215 | 752,215 |
| Creditors less than 1 year | (24,284) | (24,284) |
| ---------------------------------------------- | ---------------------------------------------- | |
| Net assets | 10,928,378 | 10,928,378 |
| ============================================== | ============================================== | |
| Unrestricted | Total Funds | |
| Funds | 2020 | |
| £ | £ | |
| Tangible fixed assets | 65,639 | 65,639 |
| Investments | 8,531,260 | 8,531,260 |
| Current assets | 508,706 | 508,706 |
| Creditors less than 1 year | (35,527) | (35,527) |
| ----------------------------------------- | ----------------------------------------- | |
| Net assets | 9,070,078 | 9,070,078 |
| ========================================= | ========================================= |
23. Analysis of changes in net debt
| At | At | |||
|---|---|---|---|---|
| 1 | Jan 2021 | Cash flows | 31 Dec 2021 | |
| £ | £ | £ | ||
| Cash at bank and in hand | 258,706 | 187,992 | 446,698 | |
| ================================ | ================================ | ================================ |
24. Related parties
In addition to the transactions disclosed in note 12 above, the Charity paid during the year:
i) 39,134 (2020: £63,151) to a company controlled by
ii) 1,630 in council tax for a Charity’s property occupied rent free by
iii) salary of 11,002 to (2020: £3,500)
person/s "connected" under section 188 (a) and (b) of the Charities Act 2011 with Mrs C Cuff.
22