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2021-12-31-accounts

RSPCA South East Somerset Branch

Charity number: 264783

Trustees report and accounts

for the year ended 31 December 2021

RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2021

Contents

Page
Trustees information and advisors 3-5
Report of the trustees 6-14
Independent examiner's report to the members of the charity 15
Statement of financial activities 16
Balance sheet 17
Cash flow statement 18
Notes to the financial statements 19-31

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RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2021

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 2021

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 Supervisor Kirsten Chapman Supervisor Alison Walsh Supervisor Polly Taylor

Somerton Staff

Deputy Manager Colleen Wolski Supervisor Janice McHale

South Petherton Staff

Supervisor Sheila Allen Supervisor Alice Crofts

Yeovil Staff

Deputy Manager Toni Graham Supervisor Sheila Ackerley Online Linda Perry

Transport/Warehouse

Supervisor Sharon Eglon

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RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2021

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 2021 including a number just outside our branch area, working in partnership with other Branches, 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 2021.

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RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2021

REPORT FOR 2021

This has been another very testing year due to the covid pandemic 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 31st December 2021. 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, Maggies and Paula are very experienced and always available to the public for help and advice. The branch has provided this support whenever 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 2021

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

More than ever this year the emphasis of the branch has been on welfare, not just the welfare of the animals but the welfare of their owners. Our welfare officers have spent hours every week listening to people’s problems and concerns – bereavement, people going into hospital, health issues and increasing numbers of people not knowing how they will get through the day.

We have regularly provided items to local food banks to ensure that owners and their animals are fed. Our welfare officers have continued to “keep an eye out” for vulnerable people who need our support.

This has at times also caused a strain on the team, but it has not reduced the commitment and passion to help those who need it.

During 2021, as a result of the covid pandemic, shops were again shut for significant periods with a consequential reduction in income.

The branch took advantage of the Government’s Job Retention scheme and put staff on furlough. The branch has received various Government Grants totalling £85,180.

Trustees identified the need to look for alternative streams of income and selling items via Ebay was a success throughout the year.

Trustees had to continue to adapt and be flexible and most meetings in the year were held virtually.

It is good to report that the second half of the year did see improved shop sales after the April re-opening and compared very favourably against local charity shop competition.

Some of the memorable events in 2021

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RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2021

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

3. COMPARISON OF ANIMAL WELFARE NUMBERS

Welfare numbers over the previous three years

Welfare numbers over theprevious threeyears Welfare numbers over theprevious threeyears Welfare numbers over theprevious threeyears Welfare numbers over theprevious threeyears
2021 2020 2019
Cats 323 401 421
Dogs 288 393 361
Rabbits 8 0 2
Misc mainlyequines 88 38 39
Annual Total 707 832 823
Cost £48,409 £46,818 £67,354
Averageper animal £68.47 £56.27 £81.84
Neutering numbers over three
years
2021 2020 2019
Cats 83 107 82
Dogs 39 106 95
Rabbits 5 0 13
Equines 1 1 5
Annual Total 128 214 195

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 £17,033 in 2019, £14,440 in 2020 and £8,894 in 2021.

Micro-chippingover threeyears
2021 2020 2019
Cats 28 96 77
Dogs 25 58 45
Annual Total 53 154 122

Microchipping is normally undertaken with Yeovil and District Cats Protection neutering programme annually with cooperation from the vets concerned using RSPCA chips. This did not take place in 2021 due to the pandemic. Now that puppies must be chipped prior to sale there are far less dogs needing chips.

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RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2021

4. REHOMING

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.

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 have reduced 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 2022 and plans for improvementhave started to be implemented.

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.

Crewkerne, Glastonbury and Somerton shops remained the key sources of funding. The South Petherton and Yeovil Shops have not achieved the levels of income originally hoped for and the Trustees will continue to monitor the viability of all the shops. It should be noted, however, that the Ebay sales and books and DVD recycling at Yeovil make the premises overall profitable.

The good news is that when the shops re-opened after the lockdown we saw a brisk trade in all of our shops and a very successful second half of the year.

INVESTMENT POLICY

The trustees reviewed the investment policy in 2020 and due to the financial uncertainty during the pandemic decided it would not be appropriate to invest any cash holding. The branch will further review investments in 2022.

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RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2021

RISK MANAGEMENT

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

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 2022

The trustees reviewed the Reserve Policy at their November 2021 meeting. This included consideration of the committed costs of the shops’ leases and their respective break clauses. Trustees also considered salary costs, animal welfare and potential loss of income if shops closed again due to further pandemic. They took reputational damage into consideration also.

The Reserves Policy is reviewed on an annual basis.

The branch has no animal centre and animal welfare support could be temporarily reduced. 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 shops are a liability for up to five years maximum according to the terms of our leases. It may be possible but unlikely to sub-let should it be necessary to close prior to the end of the lease. 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 £335,941 at the end of 2021 (£241,375 - 2020) with a further restricted fund of £7,834 for Out of Area welfare.

The trustees consider this adequate and will further review this figure late in 2022 after completion of the 2021 accounts.

LEGAL INFORMATION

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

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RSPCA South East Somerset Branch Charity number: 264783

Accounts for the year ended 31 December 2021

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.

HEALTH AND SAFETY POLICY

Staff undertake training for H&S on line via our insurers’ web site. They are expected to renew this on a regular basis. All staff hold First Aid certificates. These were renewed during the year. Staff kindly came together on a Sunday to undertake or renew these as a group.

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.

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RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2021

BRANCH POLICIES

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

Privacy Policy. Data Protection Code of Conduct Health and Safety Volunteering Young persons Equality and Diversity Conflict of interest Trustee Recruitment Shop Staff/ Volunteer Purchasing Policy Coronavirus Policy Dogs at work Policy

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 £3,600 for undertaking preparation of the monthly accounts and wages.

• Piers Farley kindly donated time last year undertaking various maintenance at the shops and Maggie Baker donated any costs she incurred.

Details of trustee expenses and related party transactions are disclosed in notes 11 and 22 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.

FINANCIAL REVIEW

Income

The overall income was £444,603. This has increased from 2020's total of £335,193.

General fund raising, grants, donations and legacies totalled £30,769 which included “door to door” money raised by the national society and given back to the branches as a grant annually. We were notified of one legacy in 2021, totalling £1,000.

Donations from rehoming cats and dogs totalled £3,880 (£4,540 - 2020).

The total income from shops of £324,672 is broken down in note 4, with a detailled breakdown of shop expenditure totalling £263,902 in note 7.

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 £5,465 having purchased £2,039 in total. Both figures are exclusive of VAT. New items to the net value of £9,454 were sold in the shops.

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RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2021

Expenditure

To highlight some of the costs:

Unfortunately, as governance takes a more prominent role these items will escalate. All efforts are made to keep these to a minimum.

FUTURE PLANS

With vets on emergency work only for most of 2021 the trustees agreed to conduct a free dog neutering campaign across the branch area in 2022. This will be available for most people on benefits or very low income.

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. It recognises it needs to increase its profile and its social media presence.

The branch is looking to recruit new trustees for succession planning and to fill the current skill gaps. This will also add to the knowledge, skills and experience of the existing Board. Priority areas include new trustees with PR & marketing and social media knowledge.

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RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2021

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: 16/05/2022

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RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2021

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 2021.

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 19/05/2022

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 2021

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
14
Total funds brought forward
Total funds carried forward
19
Net income before gains and losses on
investments
Net income/(expenditure) and
movement in funds		 Unrestricted Restricted
2021
funds
funds
Total
£
£
£
30,769
-
30,769
3,880
-
3,880
324,672
-
324,672
85,180
-
85,180
102
-
102
444,603
-
444,603
263,902
-
263,902
96,323
620
96,943
360,225
620
360,845
84,378
(620)
83,758
875
-
875
85,253
(620)
84,633
254,112
8,454
262,566
339,365
7,834
347,199		 2020
Total
£
34,765
4,540
213,783
82,024
81
335,193
260,769
109,312
370,081
(34,888)
(1,080)
(35,968)
298,534
262,566

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RSPCA South East Somerset Branch Charity number: 264783

Accounts for the year ended 31 December 2021

Statement of financial position as at 31 December 2021

Notes
Fixed assets
Tangible assets
13
Investments
14
Total fixed assets
Current assets
Stocks
15
Debtors
16
Cash at bank and in hand
Total current assets
17
Net current assets
Net assets
Funds of the charity:
Unrestricted income funds
General funds
Designated funds
Restricted income funds
Equine Welfare
Total charity funds
19
Creditors:
amounts
falling
due within one year		 £
£
3,424
-
3,424
6,748
12,395
338,050
357,193
(13,418)
343,775
347,199
334,456
4,909
7,834
347,199
2021		 £
£
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		 £
£
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
12,737
249,829
357,193
(13,418)		 262,845
(13,016)
262,566
245,116
8,996
8,454
262,566

The financial statements were approved by the trustees, and authorised for issue on 16/05/2022 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 2021

Statement of Cash Flows

Note
Net cash generated/(used) in operating activities
21
Cash flows from investing activities:
Proceeds from disposal of investments
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
2021
£
86,169
5,598
-
102
5,700
91,869
246,181
338,050		 Prior
Year
2020
£
(21,086)
-
(4,969)
81
(4,888)
(25,974)
272,155
246,181

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RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2021

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 19.

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 2021

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.

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RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2021

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 21

RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2021

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 22

RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2021

Notes to the financial statements

2 Income from donations and legacies

Income from donations and legacies
Legacies
Donations
Subscriptions
Door to door
Donated services		 Unrestricted Restricted
Total
fund
fund
2021
£
£
£
1,000
-
1,000
4,433
-
4,433
238
-
238
24,024
-
24,024
1,074
-
1,074
30,769
-
30,769		 Total
2020
£
-
8,254
433
24,879
1,199
34,765

Included in 2020 was £5,000 of restricted funds.

3 Income from charitable activities

Rehoming income Unrestricted Restricted
Total
fund
fund
2021
£
£
£
3,880
-
3,880
3,880
-
3,880		 Total
2020
£
4,540
4,540

Included in 2020 was £nil of restricted funds.

Page 23

RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2021

Notes to the financial statements

4 Other trading activitites
Unrestricted Restricted
Total
fund
fund
2021
£
£
£
Shop income by RSPCA branch shops
Crewkerne
71,624
-
71,624
Glastonbury
93,748
-
93,748
Somerton
82,523
-
82,523
South Petherton
20,751
-
20,751
Street
-
-
-
Yeovil
18,889
-
18,889
Recycling and online
37,137
-
37,137
324,672
-
324,672
Included in 2020 was £nil of restricted funds.
5 Government grants
Unrestricted Restricted
Total
fund
fund
2021
£
£
£
Coronavirus business support grants
52,343
-
52,343
Coronavirus job retention scheme
32,837
-
32,837
85,180
-
85,180
Included in 2020 was £nil of restricted funds.
6 Investment income
Unrestricted Restricted
Total
fund
fund
2021
£
£
£
Interest receivable and similar income
Bank interest
6
-
6
Dividend income
96
-
96
102
-
102		 Total
2020
£
47,937
56,369
68,811
12,787
8,508
7,097
12,274
213,783
Total
2020
£
46,670
35,354
82,024
Total
2020
£
81
-
81

Included in 2020 was £nil of restricted funds.

Page 24

RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2021

Notes to the financial statements

7 Individual shop costs Individual shop costs
South
Crewkerne Glastonbury Somerton Petherton Street Yeovil Other Total
2021 £ £ £ £ £ £ £ £
Rent 14,346 17,125 12,762 6,000 - 5,940 1,100 57,273
Rates and water 385 (108) 456 143 - 210 - 1,086
Electricity 618 594 434 343 - 902 - 2,891
Telephone 139 193 309 107 - 173 193 1,114
Wages 34,483 45,416 31,808 18,982 - 24,530 15,870 171,089
Repairs 1,820 564 6,048 52 - 504 - 8,988
Other 2,940 2,008 2,952 1,147 - 1,686 8,689 19,422
Goods for resale 919 941 104 41 - 34 - 2,039
55,650 66,733 54,873 26,815 - 33,979 25,852 263,902
South
Crewkerne Glastonbury Somerton Petherton Street Yeovil Other Total
2020 £ £ £ £ £ £ £ £
Rent 13,716 16,037 12,780 5,000 5,875 5,293 600 59,301
Rates and water 319 401 234 610 113 130 - 1,807
Electricity 1,066 683 1,123 349 433 487 - 4,141
Telephone 113 149 178 202 73 265 340 1,320
Wages 52,315 38,935 22,344 12,491 9,869 13,058 4,266 153,278
Repairs 406 382 1,512 929 63 3,105 - 6,397
Other 3,852 2,732 5,435 5,196 863 3,284 3,672 25,034
Goods for resale 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

Page 25

RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2021

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
2021
£
£
£
8,894
-
8,894
47,789
620
48,409
23,175
-
23,175
-
-
-
188
-
188
-
-
-
2,091
-
2,091
232
-
232
681
-
681
-
-
-
957
-
957
-
-
-
72
-
72
4,590
-
4,590
1,000
-
1,000
89,669
620
90,289
6,654
-
6,654
96,323
620
96,943		 Total
2020
£
14,440
46,818
26,345
27
25
410
1,884
637
645
50
1,391
254
147
4,903
5,000
102,976
6,336
109,312

Included in 2020 was £9,550 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
2021
£
£
£
2,340
-
2,340
714
-
714
3,600
-
3,600
6,654
-
6,654		 Total
2020
£
1,925
1,531
2,880
6,336

Included in 2020 was £nil of restricted funds.

10 Net income/(expenditure)

Net income/(expenditure) for the year includes: 2021 2020
£ £
Independent examiner's fees Independent examination 2,340 1,925
Other 714 1,531
Depreciation of fixed assets 4,590 4,903

Page 26

RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2021

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 (2020: £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 (2020: £1,199) has been included in respect of the running costs of the vehicle and for shop insurance paid privately.

Lee Chapman

£3,600 (2020: £2,880) was paid to Lee Chapman during the year for bookkeeping services.

Piers Farley

The charity paid £nil (2020 - £2,214) 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		 2021
£
167,470
2,079
1,540
171,089		 2020
£
151,545
662
1,071
153,278

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		 2021
No
3
13
16		 2020
No
4
16
20

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

Page 27

RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2021

Notes to the financial statements

13 Tangible fixed assets

Cost
At 1 January 2021
At 31 December 2021
Depreciation
At 1 January 2021
Charge for the year
At 31 December 2021
Net book value
At 31 December 2021
At 31 December 2020
14 Fixed asset investments
Market value brought forward at 1 January 2021
Disposal
Market value as at 31 December 2021		 Total
£
£
40,105
48,758
88,863
Leasehold
property
improvements
Fixtures,
fittings &
equipment		 Total
£
£
40,105
48,758
88,863
Leasehold
property
improvements
Fixtures,
fittings &
equipment
40,105
48,758		 88,863
34,929
45,920
2,726
1,864		 80,849
4,590
37,655
47,784		 85,439
2,450
974		 3,424
5,176
2,838		 8,014
Total
£
4,723
(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 28

RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2021

Notes to the financial statements

**15 ** Stock 2021 2020
£ £
Stock held at shops 5,465 3,723
Veterinary stock 1,177 686
Stationery stock 106 106
6,748 4,515
**16 ** Debtors 2021 2020
£ £
Trade debtors 639 436
Accrued income 1,000 -
Prepayments 6,981 7,654
VAT recoverable 3,775 4,059
12,395 12,149
**17 ** Creditors: amounts falling due within one year 2021 2020
£ £
Trade creditors 8,528 7,961
Pension creditor 381 252
Accruals 4,509 4,803
13,418 13,016
**18 ** Obligations under leases and hire purchase contracts
Operating lease commitments
Total future minimum lease payments under non-cancellable operating leases are as follows:
2021 2020
£ £
Land and buildings
Within one year 42,750 42,750
Between two and five years 122,167 164,917
Over five years 1,500 1,500
166,417 209,167

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 2021 would be £45,167 (2020: £71,000).

Page 29

RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2021

Notes to the financial statements

19 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
2021
Income Expenditure
Transfer
2021
£
£
£
£
£
£
245,116
444,603
(356,138)
-
875
334,456
8,996
-
(4,087)
-
-
4,909
8,454
-
(620)
-
-
7,834
Other
recognised
gains/(losses)
262,566
444,603
(360,845)
-
875
347,199
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

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 30

RSPCA South East Somerset Branch Charity number: 264783 Accounts for the year ended 31 December 2021

Notes to the financial statements

20 Analysis of net assets between funds

Analysis of net assets between funds
**Unrestricted ** Restricted Total
funds funds funds
£ £ £
Tangible fixed assets 3,424 - 3,424
Current assets 349,359 7,834 357,193
Current liabilities (13,418) - (13,418)
Total net assets 339,365 7,834 347,199

21 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
(Increase)/decrease in stock
Increase in debtors
(Decrease)/increase in creditors
Net cash generated/(used) from operating activities		 2021
2020
£
£
84,633
(35,968)
(102)
(81)
4,590
4,903
(875)
1,080
(2,233)
3,075
(246)
(1,419)
402
7,324
86,169
(21,086)

22 Related parties

Other than as detailed in note 11 of the accounts and on page 12 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 £5,845 (2020 - £6,570). Expenses totalling £nil (2020 - £nil) were reimbursed.

Page 31

RSPCA South East Somerset Branch Charity number: 264783 Page 32