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2023-03-31-accounts

Charity no. 294606

Holly Hedge Animal Sanctuary Report and Audited Financial Statements 31 March 2023

Holly Hedge Animal Sanctuary

Reference and administrative details

For the year ended 31 March 2023

Charity number 294606
Registered office and Holly Hedge Sanctuary
operational address Wild Country Lane
Barrow Gurney
Bristol
BS48 3SE
Trustees Trustees, who are also directors under company law, who served during
the year and up to the date of this report were as follows:
Richard Baker (appointed 10 January 2024)
Sandra Bingley
Nicola Bendall (appointed 12 July 2023)
Nicola Katherine Leeson (resigned 22 December 2022)
Pauline Leeson-Magry, Founder
Janet Temperton (resigned 29 November 2023)
Key management Lucinda Pullen
personel Tina Constance
Bryony Wall-Moran
Chrissy Hellewell
Investment managers Evelyn Partners
Portwall Place
Portwall Lane
Bristol
BS1 6NA
Bankers Royal Bank of Scotland PLC NatWest Bank PLC
Drummond House 32 Corn Street
1 Redheughs Avenue Bristol
Edinburgh BS1 1HQ
EH12 9JN
Auditors Godfrey Wilson Limited
Chartered accountants and statutory auditors
5th Floor Mariner House
62 Prince Street
Bristol
BS1 4QD

1

Holly Hedge Animal Sanctuary

Report of the trustees

For the year ended 31 March 2023

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association and the Statement of Recommended Practice - Accounting and Reporting by Charities (effective from January 2019).

The trustees present their report with the financial statements of the charity for the year ended 31 March 2023. The Trustees have adopted the provisions of Accounting and Reporting by Charities.

Objectives and aims

The main objectives of the Charity are:

Animals are often referred to us by the police and social services. Injured wildlife is referred to Secret World Wildlife Rescue, Highbridge.

The charity remains dedicated to its many fundraising activities and to attracting donations to ensure that the charity continues to achieve all of its aims and objectives and thrives during very challenging and difficult times.

Achievements and performance

The general profile of the charity continues to significantly benefit from its fundraising activities.

119 dogs and puppies (2022: 96), and 149 cats and kittens (2022: 223) were rehomed in the financial year.

The challenges we faced are as follows:

Waiting lists are still full for dogs and cats to come into the Sanctuary. Emergencies where dogs or cats high risk (e.g. pregnant or nursing), and in real danger are treated as high priorities and are taken in as quickly as possible. The same is true of any animals that are otherwise vulnerable or sick.

The charity continues to enjoy a loyal and dedicated workforce and volunteer support.

It is encouraging to see people continually returning to adopt animals, which is an endorsement of Holly Hedge's high standards and standing within the community.

2

Holly Hedge Animal Sanctuary

Report of the trustees

For the year ended 31 March 2023

Holly Hedge Retail Limited consists of one shop in Nailsea. Profits donated by the shop to the Sanctuary are shown in the financial report.

The creation of the Biodiversity Project will also provide an opportunity to widen the Charity's Education Programme.

Corporate groups continue to have “volunteer days” at Holly Hedge, bringing in both help with gardening, other tasks and generating income.

Holly Hedge staff are appreciated and thanked for their dedication to the wellbeing of the animals. A program of training and development will be delivered to ensure that staff continue to provide high quality care for all animals.

All volunteers, fundraisers and donors are also praised and thanked for their support, including individuals and companies who regularly donate pet food, toys and pet related sundries.

Financial review

Financial performance

Total income for the year ending 31 March 2023 was £5m (2022: £556k), an increase of 805% on 2022 due primarily to the receipt of a significant legacy (£4.4m). Expenditure for the year was £835k compared to £622k in 2022. This generated a surplus of £4.2m in the year compared with a deficit of £66k in 2022.

The trustees consider that the charity can continue as a going concern for a period of at least twelve months from the date of approval of these financial statements. The trustees have a reasonable expectation that the charity has adequate resources. to continue in operation for the foreseeable future.

Principal funding sources and costs

Income continues to be raised from fundraising events, homing donations, gifts, legacies and general donations.

Grants and Trusts funding applications to Animal Welfare and Environmental organisations are also part of the funding strategy, particularly for Capital Works and Biodiversity Installations.

Commission is paid to the charity from the sale of Pet Plan insurance policies for re homed animals.

The shop also contributes monies to funds. Figures and details of which can be found in the financial statement.

The two main costs to the charity are staffing and veterinary expenses. Electricity, maintenance, insurance, staff training, pet food, water rates and sundry expenses are all shown in the financial statements.

Fundraising policy

The charity does not employ external fundraisers. All fundraising income is generated through fundraising events, homing donations, gifts, legacies and general public donations.

3

Holly Hedge Animal Sanctuary

Report of the trustees

For the year ended 31 March 2023

Reserves policy

The trustees have reviewed the financial statements and consider that adequate resources continue to be available to fund the activities of the charity for the foreseeable future. In considering adequate reserves, the trustees have agreed to a policy of three months of total costs as the unrestricted reserves required, estimated at £230,432.

The reserves are higher than target due to the receipt of a high value legacy which the charity is holding in reserves until an appropriate plan is put in place for its utilisation. The trustees’ initial plans include increasing the size of the car park to accommodate 45-50 vehicles, extensive building and refurbishment work subject to planning permission.

All other monies held by the charity are held in the general fund to provide necessary working capital to finance the charity's principal aims and objectives, unless funds are restricted for specific purpose.

When donations are received for a specific project or purpose, the monies are held as restricted funds until the project is completed.

Future plans

Future plans include:

4

Holly Hedge Animal Sanctuary

Report of the trustees

For the year ended 31 March 2023

Structure, governance and management Governance and management

The Executive Committee is responsible for strategy, policy and financial management. Members of the Executive Committee are the Trustees and are referred to as such throughout these financial statements. The Trustees are governed by the charity’s Constitution.

Trustees are elected and are responsible for overall financial management, corporate planning, staffing structure and to ensure that the charity continues its work, securing its future to take in, care for, rehabilitate, protect, and rehome unwanted dogs and cats.

Trustees must have been a member of the charity for a minimum of eighteen months, be elected at the Annual General Meeting, serve for a period of three years and can be re-elected after this period for another term. Trustees hold meetings at least every two months. Existing Trustees may appoint a Trustee to fill a vacancy to hold office until the next AGM.

The newly appointed Centre Manager is responsible for supporting the Trustees in achieving their aims and future plans, and for the efficiency and effectiveness of the Centre. They also manage a team with responsibilities in their respective areas for the day-to-day running of the charity.

Trustees are Directors of Holly Hedge Retail Limited which runs a charity shop in Nailsea. A Manager is responsible for the overall running and supervision of the shop, providing regular accounts and performance data for the shop.

The Trustees have added Wildlife Conservation to their ongoing Biodiversity Project.

Public benefit

The Trustees have due regard to the guidance published by the Charity Commission on public benefit, updating policies where required.

Risk management

In January 2023 the Trustees conducted a review of the major risks to which the charity is exposed.

All management and maintenance programmes are subject to best practice and Health and Safety considerations and Safeguarding.

External risks to funding have been minimised using a firm of investment managers to optimise the charity's investment funds.

Statement of responsibilities of the trustees

The trustees (who are also directors of the charity for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

The trustees are required to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and the group and the incoming resources and application of resources, including the net income or expenditure, of the charity and the group for the year. In preparing those financial statements the trustees are required to:

5

Holly Hedge Animal Sanctuary

Report of the trustees

For the year ended 31 March 2023

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the constitution. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Auditors

Godfrey Wilson Limited were appointed as auditors to the group and parent charity during the year and have expressed their willingness to continue in that capacity.

Approved by the trustees on 26 January 2024 and signed on their behalf by

Pauline Leeson-Magry

Pauline Leeson-Magry - Trustee

6

Independent auditors' report

To the members of

Holly Hedge Animal Sanctuary

Opinion

We have audited the financial statements of Holly Hedge Animal Sanctuary (the 'parent charity') and its subsidiary (the 'group') for the year ended 31 March 2023 which comprise the consolidated statement of financial activities, consolidated and parent charity balance sheets, consolidated statement of cash flows and the related notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and the Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report other than the group and parent charity financial statements and our auditor’s report thereon. Our opinion on the group and parent charity financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

7

Independent auditors' report

To the members of

Holly Hedge Animal Sanctuary

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report. We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:

Other matters

The financial statements for the year ended 31 March 2022 were not audited because the charity was below the statutory audit threshold.

Responsibilities of the trustees

As explained more fully in the trustees’ responsibilities statement set out in the trustees’ report, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

8

Independent auditors' report

To the members of

Holly Hedge Animal Sanctuary

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements..

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The procedures we carried out and the extent to which they are capable of detecting irregularities, including fraud, are detailed below:

(1) We obtained an understanding of the legal and regulatory framework that the charity operates in, and assessed the risk of non-compliance with applicable laws and regulations. Throughout the audit, we remained alert to possible indications of non-compliance.

(2) We reviewed the charity’s policies and procedures in relation to:

(3) We inspected the minutes of trustee meetings.

(4) We enquired about any non-routine communication with regulators and reviewed any reports made to them.

(5) We reviewed the financial statement disclosures and assessed their compliance with applicable laws and regulations.

(6) We performed analytical procedures to identify any unusual or unexpected transactions or balances that may indicate a risk of material fraud or error.

(7) We assessed the risk of fraud through management override of controls and carried out procedures to address this risk. Our procedures included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. Irregularities that arise due to fraud can be even harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

9

Independent auditors' report

To the members of

Holly Hedge Animal Sanctuary

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charityʼs trustees, as a body, in accordance with section 144 of the Charities Act 2011 and the regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charityʼs trustees those matters we are required to state to them in an auditorʼs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charityʼs trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Godfrey Wilson Limited

Date: 26 January 2024

GODFREY WILSON LIMITED

Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD

10

Holly Hedge Animal Sanctuary

Consolidated statement of financial activities

For the year ended 31 March 2023

Restricted
Unrestricted
Note
£
£
Income from:
Donations and legacies
3
2,543
4,797,639
Charitable activities
4
5,000
47,006
Other trading activities
5
1,317
159,025
Investments
-
15,420
Total income
8,860
5,019,090
Expenditure on:
Raising funds
-
97,432
Charitable activities
4,323
733,289
Total expenditure
7
4,323
830,721
Net gains / (losses) on investments
-
(83)
Net income / (expenditure)
4,537
4,188,286
Transfers between funds
(1,330)
1,330
Net movement in funds
8
3,207
4,189,616
Reconciliation of funds:
Total funds brought forward
22,337
1,760,276
Total funds carried forward
25,544
5,949,892
2023
Total
£
4,800,182
52,006
160,342
15,420
5,027,950
97,432
737,612
835,044
(83)
4,192,823
-
4,192,823
1,782,613
5,975,436
2022
Total
£
372,837
48,220
134,571
61
555,689
91,336
530,464
621,800
31
(66,080)
-
(66,080)
1,848,693
1,782,613

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 19 to the accounts.

11

Holly Hedge Animal Sanctuary

Consolidated balance sheets

As at 31 March 2023

Note
Fixed assets
Tangible assets
11
Investments
12, 13, 14
Current assets
Stocks
15
Debtors
16
Cash at bank and in hand
Liabilities
Creditors: amounts falling due within 1 year 17
Net current assets
Net assets
18
Funds
19
Restricted funds
Unrestricted funds
General funds
Total charity funds
The group
2023
£
1,278,945
3,843,685
5,122,630
617
237,629
674,506
912,752
59,946
852,806
5,975,436
25,544
5,949,892
5,975,436
The group The charity
2022
2023
£
£
1,325,430
1,278,342
450
3,843,687
1,325,880
5,122,029
621
206
29,988
253,970
451,111
656,962
481,720
911,138
24,987
58,131
456,733
853,007
1,782,613
5,975,036
22,337
25,544
1,760,276
5,754,492
1,782,613
5,780,036
The charity
2022
£
1,324,721
453
1,325,174
545
55,677
423,902
480,124
23,189
456,935
1,782,109
22,337
1,759,772
1,782,109

Approved by the trustees on 26 January 2024 and signed on their behalf by

Pauline Leeson-Magry

Pauline Leeson-Magry - Trustee

12

Holly Hedge Animal Sanctuary

Consolidated statement of cash flows

For the year ended 31 March 2023

Cash used in operating activities:
Net movement in funds
Adjustments for:
Depreciation charges
Losses / (gains) on investments
Dividends, interest and rents from investments
Impairment of fixed assets
Decrease / (increase) in stock
Increase in debtors
Increase / (decrease) in creditors
Net cash provided by / (used in) operating activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of tangible fixed assets
Proceeds from the sale of investments
Purchase of investments
Net cash used in investing activities
Increase / (decrease) in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Analysis of cash and cash equivalents
Cash at bank and in hand
Cash held in financial investments
Total cash and cash equivalents
2023
£
4,192,823
58,463
83
(15,420)
20,800
4
(207,641)
34,959
4,084,071
15,420
(32,778)
1,373,704
(4,945,315)
(3,588,969)
495,102
451,111
946,213
674,506
271,707
946,213
2022
£
(66,080)
55,653
(31)
(61)
-
701
(7,874)
(6,339)
(24,031)
61
(24,856)
-
-
(24,795)
(48,826)
499,937
451,111
451,111
-
451,111

The charity has not provided an analysis of changes in net debt as it does not have any long term financing arrangements.

13

Holly Hedge Animal Sanctuary

Notes to the financial statements

For the year ended 31 March 2023

1. Accounting policies

a) Basis of preparation

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

Holly Hedge Animal Sanctuary meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

b) Group accounts

These financial statements consolidate the results of the charity and its wholly-owned (controlled) subsidiary on a line by line basis. Transactions and balances between the charity and its subsidiary have been eliminated from the consolidated financial statements. Balances between the two entities are disclosed in the notes of the charity's balance sheet. A separate statement of financial activities, or income and expenditure account, for the charity itself is not presented because the charity has taken advantage of the provisions of section 24 of the SORP.

c) Going concern basis of accounting

The accounts have been prepared on the assumption that the charity is able to continue as a going concern, which the trustees consider appropriate having regard to the current level of unrestricted reserves. There are no material uncertainties about the charity's ability to continue as a going concern.

d) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from the government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

14

Holly Hedge Animal Sanctuary

Notes to the financial statements

For the year ended 31 March 2023

1. Accounting policies (continued)

e) Donated services and facilities

Donated professional services and donated 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 economic benefit from the use by the charity of the item, is probable and the economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised.

On receipt, donated professional services and donated 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.

f) Interest receivable

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.

g) Funds accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity's work or for specific projects being undertaken by the charity.

h) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

i) Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Governance costs are the costs associated with the governance arrangements of the charity, including the costs of complying with constitutional and statutory requirements and any costs associated with the strategic management of the charity’s activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities based on the proportion of staff time as follows:

2023 2022
Raising funds 11.0% 14.2%
Charitable activities 89.0% 85.8%

15

Holly Hedge Animal Sanctuary

Notes to the financial statements

For the year ended 31 March 2023

1. Accounting policies (continued)

j) Tangible fixed assets

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

Land Not depreciated Buildings 2.5% straight line Plant and machinery 25% straight line Fixtures and fittings 15% straight line Motor vehicles 25% straight line

Items of equipment are capitalised where the purchase price exceeds £1,000.

k) Investment in subsidiary

The charity has one wholly owned subsidiary, Holly Hedge Retail Limited, (registered company number 07365296). The subsidiary is used for non-primary purpose trading activities. The subsidiary undertaking is valued at cost less any cumulative impairment losses.

l) Listed investments

Listed investments traded on a recognised stock exchange are stated at fair value at the reporting date, which is deemed to be their market value. Any gain or loss, whether realised or unrealised, is taken to the Statement of Financial Activities.

m) Stock

Stock is included at the lower of cost or net realisable value. Donated items of stock are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.

n) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

o) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

p) Creditors

Creditors and provisions are recognised where there is a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

q) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently recognised at amortised cost using the effective interest method.

16

Holly Hedge Animal Sanctuary

Notes to the financial statements

For the year ended 31 March 2023

1. Accounting policies (continued)

r) Pension costs

The charity operates a defined contribution pension scheme for its employees. There are no further liabilities other than that already recognised in the SOFA.

s) Foreign currency transactions

Transactions in foreign currencies are translated at rates prevailing at the date of the transaction. Balances denominated in foreign currencies are translated at the rate of exchange prevailing at the year end.

t) Operating leases

Rentals paid under operating leases are charged to the statement of financial activities as they fall due.

u) Accounting estimates and key judgements

In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are depreciation and legacy accruals as described in notes 1j and 1d above.

17

Holly Hedge Animal Sanctuary

Notes to the financial statements

For the year ended 31 March 2023

2. Prior period comparatives: statement of financial activities

Income from:
Donations and legacies
Charitable activities
Other trading activities
Investments
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
Net gains on investments
Net income / (expenditure)
Transfers between funds
Net movement in funds
3.
Income from donations and legacies
Donations
Legacies
Gift aid
Total income from donations and legacies
Prior period comparative:
Donations
Legacies
Gift aid
CJRS
Total income from donations and legacies
Restricted
£
£
4,543
368,294
5,000
43,220
-
134,571
-
61
9,543
546,146
-
91,336
1,844
528,620
1,844
619,956
-
31
7,699
(73,779)
(23,502)
23,502
(15,803)
(50,277)
Restricted
£
£
2,225
148,597
-
4,631,188
318
17,854
2,543
4,797,639
Restricted
£
£
4,543
218,566
-
122,619
-
26,749
-
360
4,543
368,294
Unrestricted
Unrestricted
Unrestricted
2022
Total
£
372,837
48,220
134,571
61
555,689
91,336
530,464
621,800
31
(66,080)
-
(66,080)
2023
Total
£
150,822
4,631,188
18,172
4,800,182
2022
Total
£
223,109
122,619
26,749
360
372,837

18

Holly Hedge Animal Sanctuary

Notes to the financial statements

For the year ended 31 March 2023

4. Income from charitable activities

Grants
Homing donations and reclaims
Total income from charitable activities
Prior period comparative:
Grants
Homing donations and reclaims
Total income from charitable activities
5.
Income from other trading activities
Fundraising events
Retail
Pet plan commissions
Rent
Total income from
other trading activities
Restricted
£
£
5,000
8,781
-
38,225
5,000
47,006
Restricted
£
£
5,000
-
-
43,220
5,000
43,220
2023
Restricted
Total
£
£
£
1,204
57,280
58,484
113
61,810
61,923
-
25,504
25,504
-
14,431
14,431
1,317
159,025
160,342
Unrestricted
Unrestricted
Unrestricted
2023
Total
£
13,781
38,225
52,006
2022
Total
£
5,000
43,220
48,220
2022
Total
£
28,492
71,471
24,482
10,126
134,571

All income from other trading activities in the prior period was unrestricted.

6. Government grants

In the prior year the charity received government grant support during Covid in the form of the furlough grant under the Coronavirus Job Retention Scheme. The total value of these grants in the period ending 31 March 2022 was £360. There are no unfulfilled conditions or contingencies attaching to this grant.

19

Holly Hedge Animal Sanctuary

Notes to the financial statements

For the year ended 31 March 2023

7. Total expenditure

Total expenditure
Fundraising
Retail costs
Staff costs (note 9)
Training and uniform
Vet fees
Pet food and consumables
Motor and travel
Kennel block and cottage repairs
Cleaning and waste management
Sundry
Depreciation
Impairment
Rates and water
Insurance
Telephone
Postage and stationary
Computer costs
Bank charges
Accountancy and legal
Investment manager fees
Sub-total
Allocation of support and governance costs
Total expenditure
Raising
funds
£
12,461
21,386
29,659
-
-
-
-
-
-
-
106
-
-
-
-
-
-
-
-
1,780
65,392
32,040
97,432
Charitable
activities
£
-
-
240,154
1,609
147,068
11,607
1,468
67,792
6,695
1,785
-
-
-
-
-
-
-
-
-
-
478,178
259,434
737,612
£
-
-
120,882
-
-
-
-
-
-
2,574
58,357
20,800
40,659
9,799
5,714
1,795
9,624
3,148
18,122
-
291,474
(291,474)
-
Support and
governance
costs
2023 Total
£
12,461
21,386
390,695
1,609
147,068
11,607
1,468
67,792
6,695
4,359
58,463
20,800
40,659
9,799
5,714
1,795
9,624
3,148
18,122
1,780
835,044
-
835,044

Total governance costs were £6,813 (2022: £3,213)

20

Holly Hedge Animal Sanctuary

Notes to the financial statements

For the year ended 31 March 2023

7.
Total expenditure (continued)
Prior period comparative
Fundraising
Trading subsidiary
Staff costs (note 9)
Vet fees
Pet food and consumables
Motor and travel
Kennel block and cottage repairs
Cleaning and waste management
Sundry
Depreciation
Rates and water
Insurance
Telephone
Postage and stationary
Computer costs
Bank charges
Accountancy and legal
Sub-total
Allocation of support and governance costs
Total expenditure
Raising
funds
£
6,668
21,634
29,996
-
-
-
-
-
-
125
-
-
-
-
-
-
-
58,423
32,913
91,336
Charitable
activities
£
-
-
180,770
122,421
8,226
1,511
10,948
6,894
1,347
-
-
-
-
-
-
-
-
332,117
198,347
530,464
£
-
-
101,474
-
-
-
-
-
310
55,528
42,377
732
2,439
2,043
9,338
2,734
14,285
231,260
(231,260)
-
Support and
governance
2022 Total
£
6,668
21,634
312,240
122,421
8,226
1,511
10,948
6,894
1,657
55,653
42,377
732
2,439
2,043
9,338
2,734
14,285
621,800
-
621,800

21

Holly Hedge Animal Sanctuary

Notes to the financial statements

For the year ended 31 March 2023

8. Net movement in funds

This is stated after charging:

Depreciation
Operating lease payments
Trustees' remuneration
Trustees' reimbursed expenses
Auditor's remuneration (excluding VAT):
Statutory audit
Independent examination
Other services
2023
£
58,463
12,833
Nil
476
6,800
-
3,750
2022
£
55,653
12,833
Nil
306
-
3,300
1,800

Two trustees (2022: 2) were reimbursed for operating expenses incurred on behalf of the charity.

9. Staff costs and numbers

Staff costs were as follows:

Salaries and wages
Social security costs
Pension costs
2023
£
368,684
17,540
4,471
390,695
2022
£
298,522
10,859
2,859
312,240

Included in salaries and wages are redundancy and termination costs totalling £nil, (2022: £16,845). Redundancy and termination costs have been funded from unrestricted general funds (note 19).

No employee earned more than £60,000 during the year.

The key management personnel of the charity comprise the trustees, manager, general manager, assistant manager, and Kennel & Cattery manager. The total employee benefits of the key management personnel were £53,636 (2022: £48,434).

Average number of employees (full-time equivalent) 2023
No.
29.00
2022
No.
28.00

10. Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. The subsidiary company distributes any profits to the charity and therefore no corporation tax is payable.

22

Holly Hedge Animal Sanctuary

Notes to the financial statements

For the year ended 31 March 2023

11.
Tangible fixed assets
Group
Cost
At 1 April 2022
Additions in year
Disposals in year
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
Disposed of in year
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022
Charity
Cost
At 1 April 2022
Additions in year
Disposals in year
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
Disposed of in year
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022
Land and
buildings
£
2,161,241
-
(23,111)
2,138,130
876,871
44,057
(2,311)
918,617
1,219,513
1,284,370
Land and
buildings
£
2,161,241
-
(23,111)
2,138,130
876,870
44,057
(2,311)
918,616
1,219,514
1,284,371
Plant and
machinery
£
30,918
2,740
(1,500)
32,158
30,918
295
(1,500)
29,713
2,445
-
Plant and
machinery
£
30,918
2,740
(1,500)
32,158
30,918
295
(1,500)
29,713
2,445
-
Fixtures
and fittings
£
133,251
30,038
(2,900)
160,389
110,735
8,718
(2,900)
116,553
43,836
22,516
Fixtures
and fittings
£
130,849
30,038
(2,900)
157,987
109,043
8,612
(2,900)
114,755
43,232
21,806
Motor
vehicles
£
24,346
-
-
24,346
5,802
5,393
-
11,195
13,151
18,544
Motor
vehicles
£
24,346
-
-
24,346
5,802
5,393
-
11,195
13,151
18,544
Total
£
2,349,756
32,778
(27,511)
2,355,023
1,024,326
58,463
(6,711)
1,076,078
1,278,945
1,325,430
Total
£
2,347,354
32,778
(27,511)
2,352,621
1,022,633
58,357
(6,711)
1,074,279
1,278,342
1,324,721

Included in the above is freehold land that is not depreciated.

23

Holly Hedge Animal Sanctuary

Notes to the financial statements

For the year ended 31 March 2023

12. Investments - group and charity

Listed investments
Holly Hedge Retail
Total investments at 31 March 2023
Listed investments:
Market value at the start of the year
Additions
Disposal proceeds
Unrealised gains / (losses)
Movements in investment cash
Market value at the end of the year
2023
2022
£
£
3,843,685
450
-
-
3,843,685
450
2023
2022
£
£
450
419
4,945,315
-
(1,373,704)
-
(83)
31
271,707
-
3,843,685
450
The group
The group
2023
2022
£
£
3,843,685
450
2
3
3,843,687
453
2023
2022
£
£
450
419
4,945,315
-
(1,373,704)
-
(83)
31
271,707
-
3,843,685
450
The charity
The charity
2023
2022
£
£
3,843,685
450
2
3
3,843,687
453
2023
2022
£
£
450
419
4,945,315
-
(1,373,704)
-
(83)
31
271,707
-
3,843,685
450
The charity
The charity
450

Investments in subsidiaries

The investment represents the charity's control of Holly Hedge Retail Limited, a limited company registered in England, by nature of 100% of the share capital in the company being owned by trustees of the charity. The company registration number is 07365296 and the registered office is Holly Hedge Animal Sanctuary, Wild Country Lane, Barrow Gurney, Bristol, Avon, BS48 3SE. The subsidiary is used for non-primary purpose trading activities.

Available profits are gift aided to the charity. A summary of the results of the results of the subsidiary are shown below:

24

Holly Hedge Animal Sanctuary

Notes to the financial statements

For the year ended 31 March 2023

13. Subsidiary undertakings

Holly Hedge Retail Limited

Turnover
Gross profit
Administrative expenses
Operating profit
Other income
Profit before taxation
Corporation tax
Profit for financial year
The aggregate of the assets, liabilities and funds was:
Assets
Liabilities
Funds
2023
£
60,798
60,798
(46,328)
14,470
-
14,470
-
14,470
2023
£
25,165
(24,769)
396
2022
£
63,196
63,196
(44,397)
18,799
389
19,188
-
19,188
2022
£
29,082
(28,577)
505

14. Parent charity

The parent charity's gross income and the results for the year are disclosed as follows:

Gross income
Results for the year
2023
£
4,981,729
4,192,925
2022
£
511,415
(65,956)

25

Holly Hedge Animal Sanctuary

Notes to the financial statements

For the year ended 31 March 2023

15. Stock

Stock
Merchandise
Debtors
Trade debtors
Prepayments
Accrued income
Other debtors
Amounts due from trading subsidiary
VAT
2023
2022
£
£
617
621
2023
2022
£
£
6,799
247
12,016
10,466
195,000
-
5,418
7,686
-
-
18,396
11,589
237,629
29,988
The group
The group
2023
2022
£
£
206
545
2023
2022
£
£
706
247
12,016
10,466
195,000
-
5,418
7,687
22,953
26,776
17,877
10,501
253,970
55,677
The charity
The charity
55,677

16. Debtors

17. Creditors : amounts due within 1 year

Trade creditors
Accruals
Other creditors
2023
2022
£
£
34,916
14,594
23,181
10,328
1,849
65
59,946
24,987
The group
2023
2022
£
£
34,676
14,257
21,606
8,867
1,849
65
58,131
23,189
The charity
2023
2022
£
£
34,676
14,257
21,606
8,867
1,849
65
58,131
23,189
The charity
23,189

18. Analysis of group net assets between funds

Tangible fixed assets
Investments
Current assets
Current liabilities
Net assets at 31 March 2023
£
-
-
25,544
-
25,544
Restricted
funds
£
1,278,945
3,843,685
887,208
(59,946)
5,949,892
General
funds
Total
funds
£
1,278,945
3,843,685
912,752
(59,946)
5,975,436

26

Holly Hedge Animal Sanctuary

Notes to the financial statements

For the year ended 31 March 2023

18. Analysis of group net assets between funds (continued)
Prior year comparative
Tangible fixed assets
Investments
Current assets
Current liabilities
Net assets at 31 March 2022
£
-
-
22,337
-
22,337
Restricted
funds
£
1,325,430
450
459,383
(24,987)
1,760,276
General
funds
Total
funds
£
1,325,430
450
481,720
(24,987)
1,782,613

19. Movements in funds

Movements in funds
At 1 April
2022
Income
Gains /
(losses)
£
£
£
£
£
Restricted funds
Cat garden
12,063
-
-
(1,330)
-
New ambulance
2,875
-
-
-
-
Vet bills
-
3,840
(3,840)
-
-
Foods
616
20
(483)
-
-
Solar installations
5,000
5,000
-
-
-
Other
1,783
-
-
-
-
Total restricted funds
22,337
8,860
(4,323)
(1,330)
-
Unrestricted funds
General funds
1,760,276
5,019,090
(830,721)
1,330
(83)
Total unrestricted funds 1,760,276
5,019,090
(830,721)
1,330
(83)
Total funds
1,782,613
5,027,950
(835,044)
-
(83)
Purposes of restricted funds
Cat garden
Transfers
between
funds
Expenditure
The cat garden fund represents funds for the refurbishment
garden for the welfare and enrichment of the rescue cats.
At 31
March
2023
£
10,733
2,875
-
153
10,000
1,783
25,544
5,949,892
5,949,892
5,975,436
of the cat

New ambulance The new ambulance fund was used in the year to purchase a new van to transport animals to the vet in as the previous vehicle was old and very costly to run. The balance will be used to refurbish the back of the van and to put vet ambulance stickers on the outside.

Vet bills To be used towards vet fees, this includes appeals for specific animals' vet bills where the campaign is restricted funds.

27

Holly Hedge Animal Sanctuary

Notes to the financial statements

For the year ended 31 March 2023

19. Movements in funds (continued) Purposes of restricted funds (continued)

Foods

To be used towards food costs, most relate to food donation appeals where people were unable to donate actual food so sent money towards it instead.

Solar installations

Richard (HH Volunteer) applied for a grant from Bristol Airport, it was approved for £5,000 as part of the Bristol Airport Environmental Improvement Fund. In the current year, and additional £5,000 was received from St Jame's Place Charitable Foundation towards solar installations.

Other restricted funds

Other restricted funds represent small donations for various projects as specified by the funder.

Transfers between funds

The transfer in the year represents the purchase of fixed assets from the 'Feral cats fund'.

Prior year comparative
At 1 April
2021
£
Restricted funds
Cat garden
10,000
New ambulance
22,600
Feral cats
440
Vet bills
-
Foods
-
Solar installations
-
Other
5,100
Total restricted funds
38,140
Unrestricted funds
General funds
1,810,553
Total unrestricted funds 1,810,553
Total funds
1,848,693
Income
£
2,063
-
700
40
1,040
5,000
700
9,543
546,146
546,146
555,689
£
-
-
(1,380)
(40)
(424)
-
-
(1,844)
(619,956)
(619,956)
(621,800)
Expenditure
£
-
(19,725)
240
-
-
-
(4,017)
(23,502)
23,502
23,502
-
Transfers
between
funds
Gains /
(losses)
£
-
-
-
-
-
-
-
-
31
31
31
At 31
March
2022
£
12,063
2,875
-
-
616
5,000
1,783
22,337
1,760,276
1,760,276
1,782,613

20. Financial instruments at fair value

Financial assets measured at fair value 2023
£
3,843,685
2022
£
450

Financial assets measured at fair value comprise listed investments.

28

Holly Hedge Animal Sanctuary

Notes to the financial statements

For the year ended 31 March 2023

21. Operating lease commitments

The group and charity had operating leases at the year end with total future minimum lease payments as follows:

as follows:
Amount falling due:
Within 1 year
Within 1 - 5 years
2023
2022
£
£
14,573
450
1,219
-
15,792
450
The group
2023
2022
£
£
-
450
-
-
-
450
The charity
450

22. Related party transactions

Suzanne Leeson-Magry, daughter of trustee Pauline Leeson-Magry, is an employee of Holly Hedge Animal Sanctuary. In the year ended 31 March 2023 Suzanne was paid £10,265 for her services (2022: £6,798). No amounts were outstanding at 31 March 2023.

Donations from trustees totalled £1,180 (2022: £2,836).

S Bingley and P Leeson-Magry, trustees, hold 100% of the share capital of Holly Hedge Retail Limited (£2) (2022: S Bingley, N Leeson and P Leeson-Magry, trustees, held 100% of the share capital of Holly Hedge Retail Limited (£3)). Holly Hedge Retail Limited is therefore a 100% subsidiary company of Holly Hedge Animal Sanctuary on the grounds of common control. During the year the charity received donations from Holly Hedge Retail Limited totalling £14,578 (2022: £19,313). At 31 March 2023 Holly Hedge Retail Limited owed £22,953 (2022: £26,776) to Holly Hedge Sanctuary.

23. Contingent assets

The trustees have been notified of two legacies left to the charity by individuals who were deceased prior to 31 March 2023 but which were not sufficiently certain at the year end to be included as income in the year. The estimated total income from these two legacies is £150,000 or above.

The trustees have also been notified of a further three legacies left to the charity by individuals who were deceased prior to 31 March 2023 for which there is currently no available estimate of the final amounts due to the charity. Income of £24,502 was received in the year in relation to one of these legacies and this amount is included in income in the year, however the amount of the final distribution is unknown.

29

Alison Godfrey FCA Godfrey Wilson Limited Chartered Accountants & Statutory Auditors 5[th] Floor Mariner House 62 Prince Street Bristol BS1 4QD

26 January 2024

Dear Alison

Letter of Representations on the Financial Statements for the Year Ended 31 March 2023

This representation letter is provided in connection with your audit of the financial statements of the charity for the year ended 31 March 2023.

We confirm that the following representations are made on the basis of enquiries of the trustees, management and staff with relevant knowledge and experience (and, where appropriate, of inspection of supporting documentation) sufficient to satisfy ourselves that we can properly make each of the following representations to you:

  1. We have fulfilled our responsibilities as trustees, as set out in the terms of your engagement letter dated 23 August 2023, under the Charities Act 2011 for preparing financial statements, in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

We confirm that in our opinion the financial statements give a true and fair view and in particular that where any additional information must be disclosed in order to give a true and fair view that information has in fact been disclosed. We confirm that the selection and application of the accounting policies used in the preparation of the financial statements are appropriate, and we approve these accounts for the year ended 31 March 2023.

  1. We confirm that all accounting records have been made available to you for the purpose of your audit, in accordance with your terms of engagement, and that all the transactions undertaken by the charity have been properly reflected and recorded in the accounting records. All other records and related information, including minutes of all management, trustees’ and members’ meetings, have been made available to you. We have given you unrestricted access to persons within the charity in order to obtain audit evidence and have provided any additional information that you have requested for the purposes of your audit.

  2. We confirm the charity has satisfactory title to all assets and there are no liens or encumbrances on the assets, except for those disclosed in the financial statements.

  3. We confirm that significant assumptions used by us in making accounting estimates, including those measured at fair value, are reasonable. We confirm that we have no plans or intentions that may

materially alter the carrying value and where relevant the fair value measurements or classification of assets and liabilities reflected in the financial statements.

  1. We confirm that the charity has no liabilities or contingent liabilities other than those disclosed in the financial statements.

  2. We confirm that all known actual or possible litigation and claims whose effects should be considered when preparing the financial statements have been disclosed to you and accounted for and disclosed in accordance with the applicable financial reporting framework.

  3. We confirm that there have been no events since the balance sheet date which require disclosing or which would materially affect the amounts in the financial statements, other than those already disclosed or included in the financial statements.

  4. We confirm that we are aware that a related party of the charity is a person or organisation which either (directly or indirectly) controls, has joint control of, or significantly influences the charity or vice versa and as a result will include: trustees, other key management, close family and other business interests of the previous. We confirm that the related party relationships and transactions set out in appendix 1 are a complete list of such relationships and transactions and that we are not aware of any further related parties or transactions.

  5. We confirm that the charity neither had, at any time during the year, any arrangement, transaction or agreement to provide credit facilities (including advances and credits granted by the charity) for trustees, nor provided guarantees of any kind on behalf of the trustees except as disclosed in the financial statements.

  6. We confirm that the charity has not contracted for any capital expenditure other than as disclosed in the financial statements.

  7. We confirm that the charity has complied with all aspects of contractual agreements that could have a material effect on the financial statements in the event of non-compliance.

  8. We confirm that we are not aware of any possible or actual instance of non-compliance with those laws and regulations which provide a legal framework within which the charity conducts its activities and which are central to the charity’s ability to conduct its activities, except as explained to you and as disclosed in the financial statements.

  9. We acknowledge our responsibility for the design, implementation and maintenance of internal controls to prevent and detect fraud. We confirm that we have disclosed to you the results of our risk assessment of the risk of fraud in the organisation. There have been no deficiencies in internal control of which we are aware.

  10. We confirm that there have been no actual or suspected instances of fraud involving trustees, management or employees who have a significant role in internal control or that could have a material effect on the financial statements. We also confirm that we are not aware of any allegations of fraud by trustees, former trustees, employees, former employees, regulators or others.

  11. We confirm that, in our opinion, the charity’s financial statements should be prepared on the going concern basis on the grounds that current and future sources of funding or support will be more than adequate for the charity’s needs. In reaching this conclusion, we have taken into account all relevant matters of which we are aware, and have considered a period of at least one year from the date on which the financial statements will be approved.

  12. We confirm that in our opinion the effects of uncorrected misstatements are immaterial, both individually and in aggregate, to the financial statements as a whole. A list of the uncorrected misstatements is set out in the management letter.

  13. We confirm that we are not aware of any matters of material significance that should be reported to regulators. We confirm that all correspondence with the Charity Commission has been made available to you.

  14. We confirm that all grants, donations and other income, including those subject to special terms or conditions or received for restricted purposes, have been notified to you. There have been no breaches of terms or conditions during the period regarding the application of such income.

  15. We acknowledge our legal responsibilities regarding disclosure of information to you as auditors and confirm that: (a) so far as each trustee is aware, there is no relevant audit information of which you as auditors are unaware; and (b) each trustee has taken all the steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that you are aware of that information.

  16. We confirm the following specific representations made to you during the course of the audit:

  17. (a) We confirm that legacy income is materially complete, and we are not aware of any further legacy income, other than what is already included or disclosed in the financial statements.

Yours sincerely

Pauline Leeson-Magry

Pauline Leeson-Magry - Trustee

For and on behalf of the trustees of Holly Hedge Animal Sanctuary