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2023-08-31-accounts

The Parrot Society UK Unaudited Financial Statements 31 August 2023

Page
Trustees' annual report 11
Independent examiner's report to the trustees 66
Statement of financial activities 77
Statement of financial position 88
Notes to the financial statements 99

The trustees present their report and the unaudited financial statements of the charity for the year ended 31 August 2023.

Reference and administrative details

Registered charity name The Parrot Society UK
Charity registration number 268726
Principal office Audley House
Northbridge Road
Berkhampsted
Herts
HP4 1EH
The trustees
Mr A Jones (Retired 20 November 2022)
Mr A P Clements
Ms C Luxon (Appointed 20 November 2022)
Mr D Dickason
Mr D Walker (Retired 3 February 2023)
Mrs H Baker
Mr L Clarke
Mr M Roxx
Mr T Abou-Zahr (Appointed 20 November 2022)
Company secretary Mr L Rance
Independent examiner Andrew Upton FCCA

Structure, governance and management

Governing Document

The Society operate under a Constitution, a copy of which is attached.

Recruitment and Appointment of Management Committee

Under the Constitution of The Parrot Society UK the Council members are elected by the members of the Society and are elected to serve for a period of three years after which they must be re-elected at the next Annual General Meeting.

Due to the nature of the Charity and its objectives the majority of Council members are experienced aviculturalists who have been involved in the hobby most of their adult life. They are experienced in providing advice to new members of the hobby who have a wide age range. To be eligible to become a Council member you must have been a normal member of the Society for at least 2 years and be proposed by one member and seconded by another member before you can stand for Council. Obviously some members wish to assist the Society and do much good work for us on a voluntary basis.

If certain management and business skills are in short supply on the Council, we have the ability to coopt members, this ensures that our skill levels are maintained.

Council Induction and Training

Most Council members are already familiar with the practical work of the charity having worked on aspects of our Shows and contributed articles to our monthly magazine and our free On-line publication Bird Scene over a long period of time. Additionally, new Council members are also encouraged to visit our office in Berkhamsted to see the advice provided from the centre. This allows them to gain more knowledge of the charity, browse our extensive avian library and see how our monthly magazine (our life-blood) is produced and despatched. Our Microsoft Access database of our members is also demonstrated and allows new Council members to acquire knowledge of the records we maintain. These visits are lead by our Secretary and Editor.

A Question and Answer pack has also been prepared which is based on Charity Commission publications. This is distributed to new Council members together with a set of our last two years accounts and a copy of our Constitution.

Risk Management

The Council conduct regular reviews of the major risks that we are exposed to. Obviously the Covid19 pandemic that swept the country during the financial year 2020/21 had a major impact on the Society as three annual shows were cancelled in the period. However, during this financial year 2022/23 Covid has not stopped any of the four Shows. However the December 2022 Show had to be cancelled due to an increased risk of Avian Influenza.

Avian Influenza continues to have a potential risk for the Society and during the 2023 summer it continued to pose a problem, which is unusual, it is normally stronger during the winter months following the migration into this country in November. DEFRA are taking a more proactive response to outbreaks of this disease and they now slaughter infected hens, ducks and geese. Our shows and Sale Days, when we are able to hold them due to Covid-19, have become accustomed to the licensing and associated paperwork.

Our investments during the year have been very prudent as the Society feared the general financial situation at the commencement of the year and only invested in areas where we were protected by the £85,000 limit under the rules of the FCA. This has proved successful and with the increase in the Bank of England Base Rate to 5.25%, the returns on our investments are slowly starting to improve. The reduction in the value of sterling against major currencies has resulted in CPI for August 2023 coming in at 6.3% and therefore careful management of our expenditure will have to be redoubled.

Organisational Structure

The Parrot Society has a Council of up to 11 members who meet face to face six times a year. Our Council are responsible for the strategic direction and policy of the charity. The present Council has a compliment of 7 members and an excellent mix of business and professional skills allied to strong avicultural knowledge. The secretary attends all Council meetings but does not have a vote. The Chairman and Secretary handle the day-to-day management of the Society, these two individuals have daily contact by telephone and e-mail, and a part time administrative assistant based at our Berkhampstead office with the Secretary support them.

Related Parties

The Society has no related parties, although in so far as it is complimentary to the charity's objects, we will work with other clubs and organisations in the avicultural world.

Objectives and activities

The objects of the Society are to promote the study, conservation and welfare of all members of the parrot family (order Psittacidae). In order to achieve these objectives the Society publishes magazines, e-magazines and other literature that it makes available to the public. It holds public meetings, lectures and exhibitions and provides advice and information to the public. Our extensive free website, which was updated during the year, also assists us in providing valuable information to the public.

Achievements and performance

The main areas of charitable activity are the provision of advice and information both to our members and the public on all aspects in relation to parrots and promote the study and conservation of parrots and parrot like birds.

Advice and Information

Our advice and information centre is based at our Berkhamsted office and we provide help to anyone having problems or wanting to know more about parrots. Funding for this service that is spearheaded by our Secretary is from funds generated at our Shows. We have produced four publications entitled 'Grey Parrots as Pets - Some guidelines for beginners', 'Amazon Parrots as Pets - Some guidelines for beginners', 'Parakeet Breeding - Some guidelines for beginners' and 'Colour Mutations - Some guidelines for beginners'. Feedback on all of these publications has been very pleasing and our Council consider that this is an excellent way to provide quality advice both to our members and the public on important areas of aviculture. It is our intention to continue to use this medium to inform and educate our audience. In addition we have supplemented our information by producing an e-magazine known as Bird Scene which is published four times a year, accessed through our website www.theparrotsocietyuk.org.

Conservation of Parrots

We continue to support parrot conservation projects around the world, we have given financial support in the current year to the Scarlet Macaw project in Costa Rica, where school children and their teachers are encouraged to understand the value of these beautiful birds and the importance they have to the Costa Rican tourist industry.

Financial review

For any Society finance is always an area that requires considerable attention. Money can so easily be spent on items or services that do not give value for money. For any Society, finance is always an area that requires considerable attention. Money can so easily be spent on items or services that do not give value for money. The Society has had a challenging year in 2022/2023 and achieved a deficit of £17,831 during the year.

Principal Funding Sources

A small amount is received from the sale of publications, second-hand books donated to the Society by members, binders and club badges. The major income comes from Shows run by the Society, subscriptions for the monthly magazine and commercial advertisements in the monthly publication and bequests.

Investment Policy

The Society has always had a very prudent investment policy. Most bird keepers are not rich and there has always been a tradition of careful spending amongst them. Possibly for this reason our Council has always taken great care to protect our surpluses and use the income from the investments to subsidise annual subscriptions.

Reserves Policy

Initially the Council were concerned that the Animal Welfare Act 2007 could make our Shows uneconomic to run by enforcing welfare issues and requirements that would be expensive to implement. For this reason and the possibilities of a serious outbreak of Avian Influenza that might have decimated the UK bird-keeping hobby, our Reserves policy has been, like our Investment Policy, very prudent. This has proved a sensible approach as the Avian Influenza that is now with us will not have such a devastating effect on our future than it could possibly have inflicted. It does not now look as though we will experience difficulties with the Animal Welfare Act but the general financial state of both the country and to a degree private individual's does give the Society concern. Our strategy is to continue to build our reserves through operating surpluses where we can, we are aware that Animal Rights Activists are targeting bird-keepers and we may well need these Reserves to protect our interests against these Activists. If this does not prove necessary Council would like to consider the purchase of office accommodation but at present that does not seem as necessary as protecting our activities against the Animal Rights Activists. Council, however, will continue to monitor this area carefully.

Plans for future periods

The Society wishes to continue to provide advice and assistance to the public because there is a high level of need and interest from them in parrots and such intelligent animals do give rise to difficult problems when they are not properly stimulated and cared for, both for their dietary and housing requirements. We held a successful Pet Parrot Gathering at Stafford County Showground on 8th July this year which was well attended and allowed us to supply information about Parrot welfare to those attending, many of which brought their own parrots along for the day.

The trustees' annual report was approved on 19 November 2023 and signed on behalf of the board of trustees by:

Mr L Rance Charity Secretary

I report to the trustees on my examination of the financial statements of The Parrot Society UK ('the charity') for the year ended 31 August 2023.

Responsibilities and basis of report

As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the charity's financial statements carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

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 Act; or

  2. the financial statements do not accord with those records; or

  3. the financial statements 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.

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.

Andrew Upton FCCA Independent Examiner

Collett Hulance Accountants Limited Chartered Certified Accountants 40 Kimbolton Road Bedford MK40 2NR

2023 2022
Unrestricted
funds
Total funds
Total funds
Note £ £ £
Income and endowments
Donations and legacies 4 48,022 48,022 55,369
Other trading activities 5 63,648 63,648 73,912
Investment income 6 9,014 9,014 2,813
Other income 7 8,085 8,085 8,216
--------------------------------- --------------------------------- ---------------------------------
Total income 128,769 128,769 140,310
========================
========================
========================
========= ========= =========
Expenditure
Expenditure on raising funds:
Costs of raising donations and legacies 8 65,493 65,493 66,195
Expenditure on charitable activities 9,10 75,256 75,256 77,885
Other expenditure 12 2,907 2,907 14,290
--------------------------------- --------------------------------- ---------------------------------
Total expenditure 143,656 143,656 158,370
========================
========================
========================
========= ========= =========
--------------------------------- --------------------------------- ---------------------------------
Net expenditure and net movement in funds (14,887) (14,887) (18,060)
========================
========================
========================
========= ========= =========
Reconciliation of funds
Total funds brought forward 898,667 898,667 916,727
--------------------------------- --------------------------------- ---------------------------------
Total funds carried forward 883,780 883,780 898,667
========================
========================
========================
========= ========= =========

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

2023 2022
Note £ £ £
Fixed assets
Tangible fixed assets 17 1,904 2,653
Current assets
Stocks 18 200 200
Debtors 19 17,161 6,468
Cash at bank and in hand 880,497 904,734
--------------------------------- ---------------------------------
897,858 911,402
Creditors: amounts falling due within one year 20 15,982 15,388
--------------------------------- ---------------------------------
Net current assets 881,876 896,014
--------------------------------- ---------------------------------
Total assets less current liabilities 883,780 898,667
--------------------------------- ---------------------------------
Net assets 883,780 898,667
======================== ========================
========= =========
Funds of the charity
Unrestricted funds 883,780 898,667
--------------------------------- ---------------------------------
Total charity funds 21 883,780 898,667
======================== ========================
========= =========

These financial statements were approved by the board of trustees and authorised for issue on 19 November 2023, and are signed on behalf of the board by:

Mr D Dickason Trustee

1. General information

The charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is Audley House, Northbridge Road, Berkhamsted, Herts, HP4 1EH.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS 102)) and the Charities Act 2011.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

There are no material uncertainties about the charity's ability to continue.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Fund accounting

All incoming resources and resources expended are treated as unrestricted.

Incoming resources

All income is included in the statement of financial activities when entitlement has passed to the charity, it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

Resources expended

Support costs have been allocated between the activities in relation to the income received in the year.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other recognised gains and losses, unless it reverses a charge for impairment that has previously been recognised as expenditure within the statement of financial activities. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other recognised gains and losses, except to which it offsets any previous revaluation gain, in which case the loss is shown within other recognised gains and losses on the statement of financial activities.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Equipment

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

4. Donations and legacies

Unrestricted Total Funds Unrestricted Unrestricted Total Funds Total Funds
Funds 2023 Funds 2022
£ £ £ £
Donations
Subscriptions 34,111 34,111 37,910 37,910
Donations and advertisements 9,327 9,327 10,671 10,671
Gift Aid 4,584 4,584 6,788 6,788
---------------------------- ---------------------------- ---------------------------- ----------------------------
48,022 48,022 55,369 55,369
======================== ======================== ======================== ========================
==== ==== ==== ====

5. Other trading activities

Unrestricted Total Funds Unrestricted Unrestricted Total Funds Total Funds
Funds 2023 Funds 2022
£ £ £ £
Show income 63,382 63,382 73,532 73,532
Sales income 266 266 380 380
---------------------------- ---------------------------- ---------------------------- ----------------------------
63,648 63,648 73,912 73,912
======================== ======================== ======================== ========================
==== ==== ==== ====

6. Investment income

Unrestricted Total Funds Unrestricted Total Funds
Funds 2023 Funds 2022
£ £ £ £
Bank interest receivable 9,014 9,014
2,813
2,813
======================== ======================== ======================== ========================

7. Other income

Unrestricted Total Funds Unrestricted Unrestricted Total Funds Total Funds
Funds 2023 Funds 2022
£ £ £ £
Other income 8,085 8,085 8,216 8,216
======================== ======================== ======================== ========================
Costs of raising donations and legacies
Unrestricted Total Funds Unrestricted Total Funds
Funds 2023 Funds 2022
£ £ £ £
Magazine printing & postage 27,013 27,013 27,413 27,413
Shows 38,480 38,480 38,782 38,782
---------------------------- ---------------------------- ---------------------------- ----------------------------
65,493 65,493 66,195 66,195
======================== ======================== ======================== ========================
==== ==== ==== ====

8. Costs of raising donations and legacies

9. Expenditure on charitable activities by fund type

Unrestricted Total Funds Unrestricted Unrestricted Total Funds
Funds 2023 Funds 2022
£ £ £ £
Support costs 75,256 75,256 77,885 77,885
======================== ======================== ======================== ========================
==== ==== ==== ====

10. Expenditure on charitable activities by activity type

Support
Total funds
Support
Total funds
Total fund
costs 2023 2022
£ £ £
Subscriptions 44,322 44,322 45,584
Donations and advertisements 12,118 12,118 12,831
Shows 18,816 18,816 19,470
---------------------------- ---------------------------- ----------------------------
75,256 75,256 77,885
========================
========================
========================
==== ==== ====

11. Analysis of support costs

Donations Donations
and
advertisemen
Subscriptions ts Shows Total 2023
Total 2022
£ £ £ £ £
Staff costs 29,289 8,009 12,433 49,731 53,608
Premises 4,494 1,228 1,908 7,630 7,393
Communications and IT 1,764 482 749 2,995 2,655
Legal and professional 2,094 572 890 3,556 3,270
Depreciation 441 121 187 749 1,054
Other costs 6,240 1,706 2,649 10,595 9,905
---------------------------- ---------------------------- ---------------------------- ---------------------------- ----------------------------
44,322 12,118 18,816 75,256 77,885
========================
========================
======================== ========================
========================
==== ==== ==== ==== ====

Support costs have been allocated between the activities on the basis of income received in the year.

12. Other expenditure

Unrestricted Total Funds Unrestricted Unrestricted Total Funds
Funds 2023 Funds 2022
£ £ £ £
Donations 2,907 2,907 14,290 14,290
======================== ========================
======================== ======================== ==== ====

13. Net expenditure

Net expenditure is stated after charging/(crediting):

2023 2022
£ £
Depreciation of tangible fixed assets 749 1,054
============== ========================
Independent examination fees
2023 2022
£ £
Fees payable to the independent examiner for:
Independent examination of the financial statements 2,622 2,496
======================== ========================

14. Independent examination fees

15. Staff costs

The total staff costs and employee benefits for the reporting period are analysed as follows:

2023 2022
£ £
Wages and salaries 49,612 52,897
Social security costs 119 711
---------------------------- ----------------------------
49,731 53,608
======================== ========================
==== ====

The average head count of employees during the year was 3 (2022: 2).

No employee received employee benefits of more than £60,000 during the year (2022: Nil).

16. Trustee remuneration and expenses

No trustees (nor anyone connected with them) received any remuneration during the year, but 6 trustees were reimbursed a total of £2,676 related to travel and subsistence (2022: £2,919).

17. Tangible fixed assets

Equipment Total
£ £
Cost
At 1 September 2022 and 31 August 2023 46,842 46,842
======================== ========================
==== ====
Depreciation
At 1 September 2022 44,189 44,189
Charge for the year 749 749
---------------------------- ----------------------------
At 31 August 2023 44,938 44,938
======================== ========================
==== ====
Carrying amount
At 31 August 2023 1,904 1,904
======================== ========================
==== ====
At 31 August 2022 2,653 2,653
======================== ========================
==== ====
18. Stocks
2023 2022
£ £
Stock 200 200
============== ==============
19. Debtors
2023 2022
£ £
Prepayments and accrued income 17,161 6,468
========================
==== ========================

20. Creditors: amounts falling due within one year

2023 2022
£ £
Accruals and deferred income 15,400 14,588
Social security and other taxes 582 800
---------------------------- ----------------------------
15,982 15,388
======================== ========================
==== ====

21. Analysis of charitable funds

Unrestricted funds

Unrestricted funds
At At
1 September 31 August
2022 Income Expenditure Transfers 2023
£ £ £ £ £
General funds 671,428 125,510 (140,749) 770 656,959
The John Mollindinia
Conservation Fund 227,239 3,259 (2,907) (770) 226,821
--------------------------------- --------------------------------- --------------------------------- -------------- ---------------------------------
898,667 128,769 (143,656) 883,780
======================== ======================== ======================== ========================
========= ========= ========= ============== =========
At At
1 September 31 August
2021 Income Expenditure Transfers 2022
£ £ £ £ £
General funds 676,793 138,836 (144,080) (121) 671,428
The John Mollindinia
Conservation Fund 239,934 1,474 (14,290) 121 227,239
--------------------------------- --------------------------------- --------------------------------- -------------- ---------------------------------
916,727 140,310 (158,370) 898,667
======================== ======================== ======================== ========================
========= ========= ========= ============== =========

22. Analysis of net assets between funds

Unrestricted
Total Funds
Unrestricted
Total Funds
Funds 2023
£ £
Tangible fixed assets 1,904 1,904
Current assets 897,858 897,858
Creditors less than 1 year (15,982) (15,982)
--------------------------------- ---------------------------------
Net assets 883,780 883,780
========================
========================
========= =========
Unrestricted
Total Funds
Funds 2022
£ £
Tangible fixed assets 2,653 2,653
Current assets 911,402 911,402
Creditors less than 1 year (15,388) (15,388)
--------------------------------- ---------------------------------
Net assets 898,667 898,667
========================
========================
========= =========