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2020-12-31-accounts

RSPCA South East Somerset Branch

Charity number: 264783

Trustees report and accounts

for the year ended 31 December 2020

RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2020

Contents

Page
Trustees information and advisors 3-5
Report of the trustees 6-15
Independent examiner's report to the members of the charity 16
Statement of financial activities 17
Balance sheet 18
Cash flow statement 19
Notes to the financial statements 20-32

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RSPCA South East Somerset Branch

Charity number: 264783

Accounts for the year ended 31 December 2020

Reference and and administrative information

Reference and administrative information

Trustees

Lee Chapman Chairperson (& paid bookkeeper) Margaret Baker Treasurer Ken Comber Secretary Colin Baker Piers Farley Sarah Harris Peter Luscombe Shani Thomas Michele Westlake

Welfare Officers Michelle Westlake, Margaret Baker, Paula Cullingford

Dog Fosterer/Rehabilitator Sarah Harris Minute Secretary Ken Comber

Professional advisors

Accountants Milsted Langdon LLP Motivo House, Bluebell Road, Yeovil Bankers National Westminster Westminster Street, Yeovil Co-operative Bank Southway, Skelmersdale Lloyds The Borough, Yeovil Solicitor Robin Weelen Bartlett Gooden and Weelan, 57 High Street Andrew Cutland Shepton Mallet BA4 5AQ Charity address for all correspondence Dairy House Farm, Lufton, Yeovil, BA22 8SU Branch email southeastsomerset.rspca@gmail.com

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RSPCA South East Somerset Branch Charity number: 264783

Accounts for the year ended 31 December 2020

Cattery Supervisor

Cattery Supervisor Margaret Baker Shop Teams Shops Area Manager Paula Cullingford Crewkerne Staff Supervisor Kim Studley Supervisor Niki Crofts Assistants Alice crofts and Alana James Glastonbury Staff Deputy Manager Lesley Phillips (joined at end of 2020) Supervisor Kirsten Chapman Supervisor Mai Lee Jennings Assistant Alex Plaster and Keira Katin Somerton Staff Deputy Manager Colleen Wolski Supervisor Janice McHale South Petherton Staff Deputy Manager Sheila Allen Street Staff (closed July 2020) Staff Niki Crofts, Alice Crofts, Linda Perry and Amanda Stone Yeovil Staff Deputy Manager Toni Graham Supervisor Sheila Ackerley

Shop transport and deliveries

Nick has taken over all transport and storage of goods for the shops giving up three days a week of his time. He has got it down to a fine art with so much stock donated and with five shops to service.

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RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2020

PAT testing

Colin, Robin and Paula are all qualified and test and certify all saleable items. Colin often is busy with this three or four evenings a week.

The branch Trustees wish to thank all contributors during the year. With this support, financial or otherwise, the Charity has been able to assist all animals and their owners that have asked for financial help during 2020 including a number just outside our branch area with a specific fund provided by South Wilts Branch for this purpose to ensure all animals could be offered prompt help. If we are alerted to the problem soon enough this usually means a satisfactory outcome. From the volunteers, the staff, the donors, the customers, the Inspectors, the vets and HQ staff, the premises that have our collecting boxes in place, our solicitors and accountants all of whom are extremely patient with all the questions fired at them and undertake more than we are charged for thank you from all the animals and owners that the South East Somerset Branch has assisted in 2020.

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RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2020

REPORT FOR 2020

This has been a very testing time with two lockdowns due to COVID19 severely affecting the work of the branch. However, the branch trustees are pleased to submit their Annual Report and Financial Statements of the charity for the year ended 31 December 2020. The South East Somerset Branch of the RSPCA is a separate registered charity governed by a constitution. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity’s constitution, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial reporting Standard FRS 102 applicable in the UK and Republic of Ireland (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES FOR PUBLIC BENEFIT

The purpose of the charity is “To prevent cruelty and promote kindness”. The trustees confirm that they have referred to the Charity Commission’s guidance on public benefit when reviewing the charity’s aims and objectives and in planning future activities.

Our purposes are, by lawful means, to prevent cruelty, promote kindness and alleviate suffering to animals in the area of South East Somerset according to the rules and objectives of the Royal Society for the Prevention of Cruelty to Animals.

The branch carries out these purposes by: -

  1. Providing support for the Inspectorate in their work. The priority of the branch is to support this work by providing funds for veterinary assistance to animals identified by the inspectorate as “in need” and when possible to accept animals for rehoming that are found neglected or cruelly ill-treated.

  2. The branch will also identify animals with a similar need before they come to the attention of the inspectorate thus attempting to reduce the work of the Inspectors in the field where possible.

  3. Providing welfare assistance and neutering facilities for those on low incomes. Welfare officers Michele, Paula and Maggie are very experienced and always available to the public for help and advice. The branch has provided this support when possible to enable the inspectorate to improve the lives of many animals in the area.

  4. Rehoming animals accepted by us for this purpose after vaccinating, neutering and microchipping.

  5. Providing advocacy, advice and information to members of the public on matters related to animal welfare.

  6. Promoting the campaigning work of the RSPCA. 7. Presenting a welcoming and helpful shop window for the RSPCA.

In planning the branch activities, the Trustees have considered the Charity Commission guidance on public benefit. The value of owning an animal has become recognised to benefit the mental health of the owner and as such the branch feels it adds benefit to human life where possible. The trustees are pleased that the sections below report on the achievements and performance of the charity describe our main activities and demonstrate the benefit provided to the public.

The benefits of the charity’s work are demonstrated by the branch undertaking as its prime purpose to assist the Inspectorate in accommodating and rehabilitating neglected or cruelly ill-treated animals. It is not the prime purpose of the branch to rehome unwanted animals and the branch does not always have the capacity to do so, but when there is the space it will try to help. As the branch has no animal centre we need to undertake our role to support the Inspectors work and local animal welfare in other ways.

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RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2020

A REVIEW OF OUR ACHIEVEMENTS AND PERFORMANCE: HOW OUR ACTIVITIES DELIVERED PUBLIC BENEFIT

LOCKDOWNS DUE TO COVID19 23rd March - 4th July

The branch spent funding on risk assessments and training, protective screens and other protective items etc for the shops on reopening. Government grants totalling £40,000 were claimed and received. Staff were furloughed and paid 80% of their normal salary and the shops were shut for the period.

LOCKDOWN 4th November to 2nd December

Shops were again closed and further grants applied for with all staff furloughed. In total the shops were closed for a third of the year. By the later lockdown an eBay account had been set up by the Shops Area Manager and a part time member of staff and soon started to generate income. There were some teething problems but these are being resolved.

Trustees decided at the beginning of the year to close the Street shop where income had been steadily falling due to a number of reasons, including lack of footfall and changes in people’s shopping habits.

Two new shops were signed up at moderate costs in South Petherton and a secondary retail site in the Westfield area of Yeovil. These are both small but Yeovil has the added benefit of work and office space. South Petherton opened early in the year with Yeovil delayed until later due to the lockdowns. EBay will be operated from Yeovil as both parking and post are convenient to this shop. The trustees are aware of the need to widen their ability to generate income and continuously review all channels.

With vets working on only urgent cases for much of the year welfare support and neutering has been very restricted. There have been fewer requests but a number of these have been more serious and a considerably larger cost. There were a number of people not lucky enough to be furloughed who lost all income. As a result, the branch on occasion paid over £600 for a single bill. One such case was where a dog required urgent removal of an eye.

The upside of the situation was that owners had more time for their pets and there was a reduction of animals needing new homes. Any that came in for rehoming were quickly adopted which was a benefit all round.

1. SOME EXAMPLES OF SUPPORT TO THE INSPECTORATE

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RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2020

WELFARE SUPPORT

1. WELFARE AND NEUTERING

Michele, Paula and Maggie operate a dedicated, often 24/7, welfare line (07971 175491). Along with the branch web site www.rspca-eastsomerset.org.uk this is a prompt, cost effective and excellent way to promote animal welfare advice and support to the public. The line is busy with both requests for financial help and other advice. Requests relating to neglect or cruelty concerns were referred to the National Control Centre 0300 1234 999 from where they can be properly tasked to the Inspectors. There was also a steady stream of enquiries from the website that we either dealt with or forwarded to the control centre.

2. ADVICE

Welfare numbers over the
2020 2019 2018
Cats 401 421 323
Dogs 393 361 371
Rabbits 0 2 3
Misc mainlyequines 38 39 21
Annual Total 832 823 718
Cost £46,818 £67,354 £52,695
Averageper animal £56.27 £81.84 £73.39

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RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2020

Neutering numbers over three
years
2020 2019 2018
Cats 107 82 154
Dogs 106 95 154
Rabbits 0 13 3
Equines 1 5 5
Annual Total 214 195 316

On the whole the branch commits a standard figure towards each animal neutered. There are exceptions when the owner cannot find the remainder and the animals life would be at risk. However when assisting the inspectorate it is often necessary to pay the full cost. The overall neutering cost was £24,456 in 2018, £17,033 in 2019 and £14,440 in 2020.

Micro-chippingover threeyears
2020 2019 2018
Cats 96 77 140
Dogs 58 45 106
Annual Total 154 122 122

Microchipping is undertaken with Yeovil and District Cats Protection neutering programme annually with co-operation from the vets concerned using RSPCA chips. Now that puppies must be chipped prior to sale there are far less dogs needing chips.

It has been monitored in 2020 although due to the COVID19 pandemic this was impossible to properly assess.

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RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2020

4. REHOMING

5. PRE-EMPTING INSPECTORATE CALLS

6. OUT OF AREA FUND

VOLUNTEERS

We recognised that volunteers are a much-undervalued resource for any charity.

We have volunteers at our shops, providing animal welfare, providing transport for delivery stock, house clearances, trips to the recycling centre etc, PAT testing, trustees, etc. We believe this comes to approximately 20,000 hours in total. We cannot express our thanks sufficiently to all these people.

TRANSPORT

Colin has passed the driver and work load on to Nick our new volunteer, who has been a tremendous help in moving stock between shops and lock ups. Also collecting all the recycling and centralising this to one area. (the Home barn). Because of the pandemic we have stopped house clearances along with collections and deliveries.

CATTERY

The cattery has been decidedly less occupied this year with only the main pens in emergency use for the Inspectors. Nothing has been turned away but they have been taken to St Giles as soon as possible.

FUNDRAISING

Our main efforts went into the promotion and income generation provided by the shops. We do have a small number of collection boxes in shops and cafes but due to COVID19 and the low levels of income received we are looking to reduce these.

SOCIAL MEDIA

The branch operates a web site www.rspca-eastsomerset.org.uk. We also have Facebook and Twitter sites and “followers” are continuing to increase. The marketing and promotion of the Branch is a key priority for 2021.

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RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2020

SHOPS

The shops under the care of our Area Shops Manager have continued to generate funding for the welfare work undertaken. Each shop has a team that will on occasion cover another site. We have a really dedicated team of paid and voluntary staff without whom we could not operate.

As mentioned, we closed the Street shop during the year as it was no longer viable but opened new shops in South Petherton and Yeovil. Trustees will continue to monitor the viability of all the shops.

The good news is that when the shops re-opened after the lockdown we saw a brisk trade in all of our shops.

Items sold are mainly donated but a small range of new items are sold to add further interest. These include mugs with dog or cat pictures, clocks with animal themes and incense which is very popular in particular at Glastonbury. As each of the shops has a different range of customers Paula spends considerable time identifying what item, new or donated will sell at each site. No two shops are identical thanks to her and her team.

REPORT FROM OUR SHOPS AREA MANAGER

2020 saw a whole new world with a global pandemic sweeping through. However we managed to open two new shops. Our South Petherton shop opened for 1 whole day before the 1st national lock down. Yeovil shop was opened in August between lock downs but again had to close along with the other shops in the 3rd national lock down. All the shops have adapted to the policies and procedures due to the pandemic and the times the shops have been open they have survived and thrived. We diversed during lockdowns with online ventures. Ebay has taken off and going from strength to strength with the shops supporting this by sending high value items but also it has been a way of selling surplus stock that may have well had to go to landfill.

INVESTMENT POLICY

The trustees reviewed the investment policy in 2019 and in the light of identifying further shops it was decided it would not be appropriate to invest any cash holding. The branch will further review investments in 2021.

RISK MANAGEMENT

The branch carried out a risk assessment and identified the following risks:-

o Risk of non-compliance with such as GDPR

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RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2020

Having identified these risks, the charity continued to take active steps to manage them and to reduce both the likelihood of incidents occurring and to minimise the impact should an incident occur. It is the opinion of the trustees that the branch’s procedures, policies and controls are adequate to mitigate financial loss and damage to reputation through error or fraud and to maintain the future financial viability of the branch.

RESERVES POLICY 2020

The trustees reviewed the Reserve Policy at their January 2020 meeting. This included consideration of the committed costs of the shops’ leases and their respective break clauses. Trustees also considered salary costs and animal welfare and potential loss of income if shops were void, etc.

The Reserves Policy is reviewed on an annual basis.

The branch has no animal centre and animal welfare contributions could be temporarily suspended. The staff consideration would be those employed at the shops. Therefore, the trustees would be responsible for redundancy payments, the ongoing rents and winding up costs for these properties. The branch is responsible currently for five shops. Somerton, Crewkerne, Glastonbury, South Petherton and Yeovil. The landlord at Street accepted an offer to terminate occupation in June of 2020. These others are a liability for up to five years maximum but it may be possible to sub-let should it be necessary to close prematurely. However trustees are required to consider the total length of the lease when considering branch liabilities.

Taking all these points into consideration the free reserves stood at £241,375 at the end of 2020 (£278,966 - 2019) with a further restricted fund of £8,454 for Out of Area welfare. The trustees will review this figure in 2021 following completion of their annual accounts and adjustment of the remaining leases to which the branch is committed.

Due to COVID19 the trustees have been unable to review this figure but will undertake to do so in 2021. However they are confident they have sufficient reserves in place for the immediate future.

LEGAL INFORMATION

The charity was registered with the Charity Commission on the 24th November 1972.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The current constitution of the Royal Society for the Prevention of Cruelty to Animals (the Society) was created under the Parliamentary Act 1932. The work of the Society is governed by this act and the accompanying rules.

The Society is governed by an elected Council, which is assisted by staff and branches.

A committee that is elected annually by the branch members governs the South East Somerset branch. Committee members are members of and trustees of the branch. They have individual and collective responsibility for the management of the branch and its funds. The committee controls and monitors all fundraising and animal welfare initiatives subject of the overall approval and rules of the Society.

The branch is an independent charity but may be considered a “franchise” of the main society in order to use the logo and benefit from the expertise and purchasing power of the main society. However the branch must raise its own funds. The branch is guided by the main society and expected to undertake work locally in a variety of ways to support the work of the Inspectorate.

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RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2020

TRUSTEES INDUCTION AND TRAINING

Every prospective trustee is provided with information about the work of the branch and invited to attend one or more trustee meetings as an observer. Training is offered as appropriate to trustees; however with many volunteers working full or part time, requests for take up tends to be low. The newsletters from the Charity Commission are distributed to Trustees to assist in their role. The Treasurer and Trustee/book keeper hold qualifications suitable for their roles and undertake regular training.

BRANCH POLICIES

The branch is registered for Data Protection and the following policies were either complete or completed during the year.

Privacy Policy. Data Protection Code of Conduct Health and Safety Volunteering Young persons Equality and Diversity Young persons Staff/Volunteer purchasing policy Conflict of interest Trustee Recruitment

These will be reviewed in 2021 and updated as required. We monitor policies provided by the Society and update ours in line or use them as they are presented.

KEY MANAGEMENT AND PERSONNEL REMUNERATION

The trustees consider that the board of trustees comprise the key management personnel of the charity in charge of the directing and controlling the charity and running and operating the charity on a day to day basis. All trustees give of their time freely and no trustee remuneration was paid in the year except for;

• Lee Chapman who was paid £2,880 for undertaking preparation of the monthly accounts and wages.

Details of trustee expenses and related party transactions are disclosed in notes 11 and 23 to the accounts. Trustees are required to disclose all relevant interests and register them and in accordance with the charity’s policy withdraw from decisions where a conflict of interest arises. Where there is a conflict of interest a waiver will be obtained through the Regional Board. This is the case for Piers Farley who will undertake a limited amount of maintenance, (related to Paula Cullingford an employee) and for Lee Chapman who is the branch's bookkeeper.

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RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2020

FINANCIAL REVIEW

Income

The overall income was £335,193. This reduced from 2019's total of £384,675.

The shops income includes the recycling of bric a brac, clothes etc through an external merchant. The branch currently holds new stock to the value of £3,723 having purchased £9,492 in total. Both figures are exclusive of VAT. New items to the net value of £12,950 were sold in the shops.

Expenditure

To highlight some of the costs:

FUTURE PLANS

In July 2021 trustees will create a detailed financial forecast for the remainder of 2021 focusing on improving support in areas where the Inspectors and ourselves are aware of hardship. The branch will continue to need to utilise some of the reserves during 2021 to maintain the programme of supporting Inspectors and both animals and their owners. Good business planning puts the branch in a position where this is possible for some time.

After a review of the trustee skills it was recognised that the branch should advertise for potential trustees in particular any with media, marketing and/or retail skills.

The trustees will continue to monitor the viability of the shops, look to increase ebay sales and explore other potential income streams.

The Branch is also keen to further promote the excellent service that it continues to deliver for local animals in the local community.

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RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2020

Statement of trustee's responsibilities

The charity trustees are responsible for preparing a trustees’ annual report and 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 the period. In preparing those financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to 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 taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements.

Approved and signed on behalf of the trustees by;

M A Baker L Chapman Treasurer Trustee Date: 01/07/2021

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RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2020

Independent examiner's report to the trustess of RSPCA South East Somerset Branch

I report to the trustees on my examination of the accounts of RSPCA South East Somerset Branch for the year ended 31 December 2020.

Responsibilities and basis of report

As the charity trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').

Having satisfied myself that the accounts of the Charity are not required to be audited under section 144(2) of the 2011 Act and are eligible for independent examination, I report in respect of my examination of the Charity's accounts carried out under section 145 of the Charities Act 2011 and in carrying out my examination I have followed the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the Charity's gross income exceeded £250,000 your examinar 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 in England and Wales, which is one of the listed bodies.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the Charity as required by section 130 of the Charities Act 2011; or

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

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fair view which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102).

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.

Gill Freeman ACA Date 07/07/2021

Milsted Langdon LLP Chartered Accountants Motivo House Alvington Yeovil Somerset, BA20 2FG

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RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2020

Statement of financial activities

Notes
Income and Endowments from:
Donations and legacies
2
Charitable activities
3
Other trading activities
4
Government Grants
5
Investment income
6
Total income
Expenditure on:
Raising funds
7
Charitable activities
8
Total expenditure
Net gains/(losses) on investments
15
Total funds brought forward
Total funds carried forward
20
Net income/(expenditure) and
movement in funds
Net income before gains and losses on
investments		 Unrestricted Restricted
2020
funds
funds
Total
£
£
£
29,765
5,000
34,765
4,540
-
4,540
213,783
-
213,783
82,024
-
82,024
81
-
81
330,193
5,000
335,193
260,769
-
260,769
106,949
2,363
109,312
367,718
2,363
370,081
(37,525)
2,637
(34,888)
(1,080)
-
(1,080)
(38,605)
2,637
(35,968)
292,717
5,817
298,534
254,112
8,454
262,566		 2019
Total
£
40,301
5,710
338,220
-
444
384,675
225,838
136,086
361,924
22,751
956
23,707
274,827
298,534

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RSPCA South East Somerset Branch Charity number: 264783

Accounts for the year ended 31 December 2020

Statement of financial position as at 31 December 2020

Notes
Fixed assets
Tangible assets
14
Investments
15
Total fixed assets
Current assets
Stocks
16
Debtors
17
Cash at bank and in hand
Total current assets
18
Net current assets
Net assets
Funds of the charity:
Unrestricted income funds
General funds
Designated funds
Restricted income funds
Equine Welfare
Total charity funds
20
Creditors:
amounts
falling
due within one year		 £
£
8,014
4,723
12,737
4,515
12,149
246,181
262,845
(13,016)
249,829
262,566
245,116
8,996
8,454
262,566
2020		 £
£
7,948
5,803
13,751
7,590
10,730
272,155
290,475
(5,692)
284,783
298,534
286,534
6,183
5,817
298,534
2019		 £
£
7,948
5,803
13,751
7,590
10,730
272,155
290,475
(5,692)
284,783
298,534
286,534
6,183
5,817
298,534
2019
13,751
284,783
262,845
(13,016)		 290,475
(5,692)
298,534
286,534
6,183
5,817
298,534

The financial statements were approved by the trustees, and authorised for issue on 01/07/2021 and signed on their behalf by:

M A Baker L Chapman Treasurer Trustee

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RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2020

Statement of Cash Flows

Note
Net cash generated in operating activities
22
Cash flows from investing activities:
Acquisition of tangible fixed assets
Interest and dividends
Net cash generated/(used) in investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward		 Total
Funds
2020
£
(21,086)
(4,969)
81
(4,888)
(25,974)
272,155
246,181		 Prior
Year
2019
£
30,985
-
444
444
31,429
240,726
272,155

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RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2020

Notes to the financial statements

1 Accounting policies

Basis of preparation

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. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (Charities SORP 2015 (FRS 102) - effective 1 January 2019) and the Charities Act 2011.

RSPCA South East Somerset Branch meets the definition of a public benefit entity under FRS 102.

The trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.

Funds structure

Unrestricted income funds are general funds that are available for use at the trustee's discretion in furtherance of the objectives of the Charity. Unrestricted funds include designated funds where the trustees, at their discretion, have created a fund for a specific purpose.

Restricted funds are those donated for use in a particular area of for specific purposes, the use which is restricted to that area or purpose by the donor. The restricted funds are specifically for the purpose of contributing to the cost of veterinary treatment and other fees associated with animals from outside of the RSPCA South East Somerset Branch area which for reasons of animal welfare and logistics are more conveniently handled by the branch. Further details of each fund are disclosed in note 20.

Income recognition

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfillment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.

Income from the sale of donated goods in the shops operated by the charity is recognised once sold due to there not being a practical method of valuing the goods being donated by the general public.

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RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2020

Notes to the financial statements

Legacy gifts are recognised on a case by case basis following the grant of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title to the asset having been transferred to the charity.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Donated services and facilities

Donated services or facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of the economic benefit can be measured reliably. On receipt, donated services and facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable settlement is required and the amount of the obligation can be measured reliably.

All expenditure is recognised on an accruals basis. All costs, including support costs and governance 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.

Irrecoverable VAT

Irrecoverable VAT is charged against the expenditure heading for which it was incurred.

Cost of raising funds

The costs of generating funds consist of costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

Charitable activities

Charitable expenditure comprises those costs incurred by the Charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Page 21

RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2020

Notes to the financial statements

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 involving the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to independent examination, strategic management and Trustee’s meetings and reimbursed expenses.

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 £150 or more are capitalised and valued at historical 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:

Leasehold property improvements over lease of the property
Fixtures, fittings and equipment 20% straight line
Cattery 10% straight line

Fixed asset investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

The charity does not acquire put options, derivatives or other complex financial instruments. The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

Page 22

RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2020

Notes to the financial statements

Pensions

The charity operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the charity. Any annual contributions are charges to the Statement of Financial Activities.

Realised gains and losses

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between the sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

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).

Goods donated by the general public to be sold in the shops operated by the charity are not included in the value of stock due to there being no practical method of determining the value prior to sale.

Financial instruments

The charity only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the charity and their measurement basis are as follows;

Financial assets - trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments.

Cash at bank - is classified as a basic financial instrument and is measured at face value.

Financial liabilities - trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition. Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument.

Page 23

RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2020

Notes to the financial statements

2 Income from donations and legacies

Income from donations and legacies
Donations
Subscriptions
Fund raising
Door to door
Donated services		 Unrestricted Restricted
Total
fund
fund
2020
£
£
£
3,254
5,000
8,254
433
-
433
-
-
-
24,879
-
24,879
1,199
-
1,199
29,765
5,000
34,765		 Total
2019
£
12,021
32
102
26,629
1,517
40,301

Included in 2019 was £10,650 of restricted funds.

3 Income from charitable activities

Rehoming income Unrestricted Restricted
Total
fund
fund
2020
£
£
£
4,540
-
4,540
4,540
-
4,540		 Total
2019
£
5,710
5,710

Included in 2019 was £nil of restricted funds.

Page 24

RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2020

Notes to the financial statements

4 Other trading activitites
Unrestricted Restricted
Total
fund
fund
2020
£
£
£
Shop income by RSPCA branch shops
Crewkerne
47,937
-
47,937
Glastonbury
56,369
-
56,369
Somerton
68,811
-
68,811
South Petherton
12,787
-
12,787
Street
8,508
-
8,508
Yeovil
7,097
-
7,097
Recycling and online
12,274
-
12,274
213,783
-
213,783
Included in 2019 was £nil of restricted funds.
5 Government grants
Unrestricted Restricted
Total
fund
fund
2020
£
£
£
Coronavirus business support grants
46,670
-
46,670
Coronavirus job retention scheme
35,354
-
35,354
82,024
-
82,024
Included in 2019 was £nil of restricted funds.
6 Investment income
Unrestricted Restricted
Total
fund
fund
2020
£
£
£
Interest receivable and similar income
Bank interest
81
-
81
Dividend income
-
-
-
81
-
81		 Total
2019
£
86,929
95,341
100,210
-
49,632
-
6,108
338,220
Total
2019
£
-
-
-
Total
2019
£
219
225
444

Included in 2019 was £nil of restricted funds.

Page 25

RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2020

Notes to the financial statements

7 Individual shop costs

2020
Rent
Rates and water
Electricity
Telephone
Wages
Staff Training
Repairs
Other
Goods for resale
2019
Rent
Rates and water
Electricity
Telephone
Wages
Staff training
Repairs
Other
Goods for resale		 Crewkerne
Glastonbury
Somerton
South
Petherton
Street
Yeovil
Other
Total
£
£
£
£
£
£
£
£
13,716
16,037
12,780
5,000
5,875
5,293
600
59,301
319
401
234
610
113
130
-
1,807
1,066
683
1,123
349
433
487
-
4,141
113
149
178
202
73
265
340
1,320
52,315
38,935
22,344
12,491
9,869
13,058
4,266
153,278
-
-
-
-
-
-
-
-
406
382
1,512
929
63
3,105
-
6,397
3,852
2,732
5,435
5,196
863
3,284
3,672
25,034
1,938
2,744
1,157
1,886
640
1,126
-
9,491
73,725
62,063
44,763
26,663
17,929
26,748
8,878
260,769
Crewkerne
Glastonbury
Somerton
South
Petherton
Street
Yeovil
Other
Total
£
£
£
£
£
£
£
£
11,793
15,761
12,748
-
10,498
-
-
50,800
1,178
1,567
996
-
1,197
-
-
4,938
1,250
689
1,150
-
1,512
-
-
4,601
143
163
179
-
154
-
-
639
37,693
42,173
29,342
-
31,779
-
-
140,987
112
111
112
-
111
-
-
446
1,729
330
1,657
-
311
-
-
4,027
2,874
2,651
2,476
-
2,588
-
-
10,589
2,836
2,900
592
-
2,483
-
-
8,811
59,608
66,345
49,252
-
50,633
-
-
225,838

Page 26

RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2020

Notes to the financial statements

8 Costs of charitable activities
Neutering
Veterinary welfare
Kennels
Animal food
Microchips
Cattery consumables
Vehicle costs
Advertising
Insurance
Room hire
Printing, stationery and office supplies
Postage, carriage and telephone
Other expenses
Depreciation
RSPCA Headquarters Donation
Governance and support costs		 Unrestricted
Restricted
Total
fund
fund
2020
£
£
£
14,440
-
14,440
37,268
9,550
46,818
26,345
-
26,345
27
-
27
25
-
25
410
-
410
1,884
-
1,884
637
-
637
645
-
645
50
-
50
1,391
-
1,391
254
-
254
147
-
147
4,903
-
4,903
5,000
-
5,000
93,426
9,550
102,976
6,336
-
6,336
99,762
9,550
109,312		 Total
2019
£
17,033
67,354
30,223
2,352
269
816
1,568
457
836
83
1,130
238
953
7,178
-
130,490
5,596
136,086

Included in 2019 was £4,833 of restricted funds.

9 Governance and support costs

Governance and support costs
Independent examiner's fees
Other accountancy fees
Bookkeeping		 Unrestricted
Restricted
Total
fund
fund
2020
£
£
£
1,925
-
1,925
1,531
-
1,531
2,880
-
2,880
6,336
-
6,336		 Total
2019
£
1,850
866
2,880
5,596

Included in 2019 was £nil of restricted funds.

10 Net income/(expenditure)

Net income/(expenditure) for the year includes: 2020 2019
£ £
Independent examiner's fees Independent examination 1,925 1,850
Other 1,531 866
Depreciation of fixed assets 4,903 7,178

Page 27

RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2020

Notes to the financial statements

11 Trustees remuneration and expenses

The trustees all give freely their time and expertise without any form of remuneration or other benefit in cash or kind (2019: £nil).

During the year, the charity made the following transactions with trustees:

Margaret Baker

Margaret Baker has made a van available to the charity. A donation in kind of £1,074 (2019: £1,267) has been included in respect of the running costs of the vehicle.

Lee Chapman

£2,880 (2019: £2,880) was paid to Lee Chapman during the year for bookkeeping services.

Piers Farley

The charity paid £2,214 (2019 - £nil) to Piers Farley in respect of property maintance services to the South Petherton shop.

12 Staff costs

The aggregate payroll costs were as follows;
Wages and salaries
Social security costs
Pension contributions		 2020
£
151,545
662
1,071
153,278		 2019
£
138,658
1,339
990
140,987

The monthly average number of persons (including senior management team) employed by the charity during the year as average head count with full time equivalent as additional optional disclosure as follows:

Full time
Part time		 2020
No
4
16
20		 2019
No
2
14
16

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

13 Taxation

No tax was charged in the year (2019 - £nil).

Page 28

RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2020

Notes to the financial statements

14 Tangible fixed assets

Total
£
£
£
Cost
At 1 January 2020
36,430
9,964
27,500
73,894
Additions
3,675
-
1,294
4,969
At 31 December 2020
40,105
9,964
28,794
78,863
Depreciation
At 1 January 2020
31,889
9,964
24,093
65,946
Charge for the year
3,040
-
1,863
4,903
At 31 December 2020
34,929
9,964
25,956
70,849
Net book value
At 31 December 2020
5,176
-
2,838
8,014
At 31 December 2019
4,541
-
3,407
7,948
15 Fixed asset investments
Total
£
Market value brought forward at 1 January 2020
5,803
Net loss on revaluation
(1,080)
Market value as at 31 December 2020
4,723
Fixtures,
fittings &
equipment
Motor
vehicles
Leasehold
Property
improvements		 Total
£
£
£
36,430
9,964
27,500
73,894
3,675
-
1,294
4,969
Fixtures,
fittings &
equipment
Motor
vehicles
Leasehold
Property
improvements		 Total
£
£
£
36,430
9,964
27,500
73,894
3,675
-
1,294
4,969
Fixtures,
fittings &
equipment
Motor
vehicles
Leasehold
Property
improvements
40,105
9,964
28,794		 78,863
31,889
9,964
24,093
3,040
-
1,863		 65,946
4,903
34,929
9,964
25,956		 70,849
5,176
-
2,838		 8,014
4,541
-
3,407		 7,948
Total
£
5,803
(1,080)
4,723

All investments are carried at their fair value. Investment in equities and fixed interest securities are all traded in quoted public markets, primarily the London Stock Exchange. The basis of fair value for quoted investments is equivalent to the market value, using the bid price. Asset sales and purchases are recognised at the date of the trade at cost (that is their transaction value).

The significance of financial instruments to the ongoing financial sustainability of the charity is considered in the financial review and investment policy sections of the Trustees’ Annual Report.

Liquidity risk is anticipated to be low as all assets are traded and the commitment to intervention by central banks and market regulators has continued to provide for orderly trading in markets and so the ability to buy and sell quoted equities and stock is anticipated to continue. The charity’s investments are mainly traded in markets with good liquidity and high trading volumes. The charity has no material investment in markets subject to exchange controls or trading restrictions.

Page 29

RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2020

Notes to the financial statements

**16 ** Stock 2020 2019
£ £
Stock held at shops 3,723 5,662
Veterinary stock 686 1,843
Stationery stock 106 85
4,515 7,590
**17 ** Debtors 2020 2019
£ £
Trade debtors 436 1,533
Prepayments/accrued income 7,654 6,183
VAT recoverable 4,059 3,014
12,149 10,730
**18 ** Creditors: amounts falling due within one year 2020 2019
£ £
Trade creditors 7,961 801
Pension creditor 252 198
Wages creditor - 236
Accruals 4,803 4,457
13,016 5,692
**19 ** Obligations under leases and hire purchase contracts
Operating lease commitments
Total future minimum lease payments under non-cancellable operating leases are as follows:
2020 2019
£ £
Land and buildings
Within one year 42,750 38,250
Between two and five years 118,917 100,000
Over five years 1,500 1,667
163,167 139,917

Each shop lease has a break clause as part of the agreement with the landlord. If the charity chose to initialise the break clauses currently in place the total future minimum lease payments at 31 December 2020 would be £71,000 (2019: £68,542).

Page 30

RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2020

Notes to the financial statements

20 Funds
Unrestricted funds
General funds
Designated funds
Restricted funds
Out of Area Welfare
Total funds
Unrestricted funds
General funds
Designated funds
Restricted funds
Out of Area Welfare
Total funds		 Balance
Balance at
1 January
31 December
2020
Income Expenditure
Transfer
2020
£
£
£
£
£
£
286,534
330,193
(360,531)
(10,000)
(1,080)
245,116
6,183
-
(7,187)
10,000
-
8,996
5,817
5,000
(2,363)
-
-
8,454
Other
recognised
gains/(losses)
298,534
335,193
(370,081)
-
(1,080)
262,566
Balance
Balance at
1 January
31 December
2019
Income Expenditure
Transfer
2019
£
£
£
£
£
£
268,219
359,025
(341,666)
-
956
286,534
6,608
15,000
(15,425)
-
-
6,183
-
10,650
(4,833)
-
-
5,817
Other
recognised
gains/(losses)
274,827
384,675
(361,924)
-
956
298,534

The unrestricted funds are available to be used at the trustees discretion to further the objects of the charity.

The designated fund represents money trustees wish to spend directly on equine welfare.

The restricted funds were raised and donated specifically for the purpose of contributing to the cost of veterinary treatment and other fees associated with animals from outside of the RSPCA South East Somerset Branch area which for reasons of animal welfare and logistics are more conveniently handled by the branch.

Page 31

RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2020

Notes to the financial statements

21 Analysis of net assets between funds

Analysis of net assets between funds
**Unrestricted ** Restricted Total
funds funds funds
£ £ £
Tangible fixed assets 8,014 - 8,014
Fixed asset investments 4,723 - 4,723
Current assets 254,391 8,454 262,845
Current liabilities (13,016) - (13,016)
Total net assets 254,112 8,454 262,566

22 Reconciliation of net movement in funds to net cash flow from operating activities

Net movement in funds
Removal of bank interest and dividends
Add back depreciation charge
Remove gains/(add back losses) in investments
Decrease in stock
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash generated from operating activities		 2020
2019
£
£
(35,968)
23,707
(81)
(444)
4,903
7,178
1,080
(956)
3,075
476
(1,419)
124
7,324
900
(21,086)
30,985

23 Related parties

Other than as detailed in note 11 of the accounts and on page 13 in the trustees report the following related party transactions arose in the year.

The step-daughter of Mr P Farley, a trustee of the charity, was employed by the branch and her remuneration was £6,570 (2019 - £4,641). Expenses totalling £nil (2019 - £112) were reimbursed.

Page 32

RSPCA South East Somerset Branch Charity number: 264783 Page 33