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2021-12-31-accounts

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

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North Clwyd Animal Rescue | Year ended 31 December 2021 1

3 Trustees’ Report 4 Objectives & Activities 5 Impact of COVID 6 Our Success 8 Telling the Story 9 Future Plans 11 Financial Review 13

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North Clwyd Animal Rescue | Year ended 31 December 2021 2

Trustees' Report

Trustees’ Report For the year ending 31st December 2021

The Trustees present their report and financial statements for the year ended 31st December 2021.

The financial statements have been prepared in accordance with the accounting policies set out

in note 1 to the financial statements 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 applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".

North Clwyd Animal Rescue | Year ended 31 December 2021

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Objectives & Activities

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

The object for which North Clwyd Animal Rescue (NCAR) was established was for the promotion of kindness and the prevention of cruelty to animals by the provision of food, shelter and veterinary treatment for all abandoned and sick animals.

Our aim

Our aim is to take in unwanted animals, to care for them to the best of our abilities and to rehome them to responsible members of the public. We do not put any animals to sleep except on the advice of our vet if the animal is suffering or if we consider, after a period of assessment, that the animal is a danger to the public. Due

to capacity we are only able to take an animal in if there is a space available. If there is no available space for an animal, we will try to rehome these animals direct from home to home.

There are many unwanted, abused and abandoned animals in this region and this has increased dramatically due to the number of dogs bought during lockdowns and now no longer wanted. This is not a unique issue facing this area, we know that there would be a lot more pain and suffering subjected to animals if we ceased to exist. Our growth tells us that we play a vital part in the community and we also try to

enlighten people of the effects of unwanted litters, as sadly there is an imbalance in the number of good homes and animals waiting to be adopted. We are almost constantly filled with residents.

North Clwyd Animal Rescue | Year ended 31 December 2021

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Impact of Covid 19

COVID 19

Unfortunately, the pandemic affected the charity in so many ways. For the first few months of 2021 our rescue centre, veterinary surgery, charity shops and cafe were once again closed to the public and volunteers. We were still unable to hold fundraising events but as always, our supporters were amazing sending donations to help with running costs. Unfortunately, the effect of Covid 19 has reduced the number of volunteers willing to help. We are still suffering from a lack of volunteers, mainly in the cafe, the laundry, and the cattery.

North Clwyd Animal Rescue | Year ended 31 December 2021

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Our success

Facts and figures

We took in a total of 736 animals during the year, made up of: 298 dogs, 398 cats, 29 rabbits and 1 guinea pig.

Despite all the COVID restrictions, we managed to rehome a total of 779 animals, made up of: 319 dogs, 419 cats, 28 rabbits, 12 guinea pigs and 1 ferret. Due to COVID 19 restrictions, we had changed to an appointment system for prospective adopters to visit the rescue which worked very well, so it was decided that we should continue with this during 2021 once the Covid 19 restrictions were lifted.

Over the year, we received 100 stray dogs from Flintshire and Denbighshire Councils. All strays remain the property of the council for the first seven days, then, if not claimed, ownership is transferred to the charity. Every dog that comes into the rescue has a behaviour assessment and some do not stay too long before they find their new homes.

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Our success

Adam Hobbs

However, some do have problems and our volunteer behaviourist, Adam Hobbs from K999, (who is also one of our trustees,) puts together training programmes for these dogs and we work with them for as long as necessary to enable them to eventually find the right owner. We provide continued support to new owners and Adam will always try and help with any problems they encounter to prevent the dogs returning into rescue.

Our Vets - Whitefield Veterinary Clinic

Our onsite Veterinary surgery neutered a total of 399 animals during 2021. We practice early neutering of kittens from approximately 9 weeks of age so that we are safe in the knowledge that when they go to their new homes they will not be adding to the growing population of cats. The clinic is solely for the benefit of the animals in our care, those out in foster homes and any adopted animals needing on-going veterinary care. We do also neuter a number of feral cats who are then usually returned to their original surroundings.

A heartfelt Thank you

Our grateful thanks go to all our staff, volunteers, and supporters whose commitment and dedication has seen the charity survive through one of the most difficult periods we have ever experienced.

North Clwyd Animal Rescue | Year ended 31 December 2021

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Telling our story

Our website www.ncar.org.uk provides vital information relating to the animals in our care and the procedures we undertake to ensure all the animals who leave our care are properly cared for in their new homes. We are presently in the process of creating a new, more informative website which will include our other sites at Little Pydew in Prestatyn and Hafod Barn in Trefnant.

Social Media

We also provide details of the Charity to the wider audience by using Social Media Marketing to promote the events we hold, plus details of the animals in our care looking for their forever homes. Social Media Marketing helps raise our profile which in turn helps generate income.

North Clwyd Animal Rescue is a full member of the Association of Dogs and Cats Homes and as such complies fully with their Code of Practice to provide the best possible standards for all the animals in our care. During the year all ADCH meetings had to be held via Zoom which provided the opportunity to work together with other animal charities who were experiencing similar problems to ourselves due to COVID 19.

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Future plans

Hafod Equestrian

We are developing the property in Trefnant which the charity inherited from Mrs D Wells-Kendrew. This included a house, a large indoor arena, stabling and 35 acres of land. We have started to use it for rescuing abandoned and unwanted horses, ponies and donkeys. We have made improvements to the indoor arena on site which is now being hired out to various groups and will provide an annual income to support the equines.

This year, we have started to take in equines at Hafod Equestrian and have employed a new member of staff to live on-site to look after them.

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Some of the residents at
Hafod Equestrian Rescue
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Future plans

Little Pydew

Due to COVID 19 restrictions, we have not as yet been able to refurbish the kennels at Little Pydew in Prestatyn which was vested to NCAR when we merged with the Abandoned Animals Association.

We have transferred our rabbit section to Little Pydew and it is hoped that we can use this site to house our more long-term dogs who need a quieter environment and plenty of space. In the meantime, we are renting out the bungalow on site.

Play Paddocks

We have fenced off a large field which we hire out on an hourly basis to members of the public to exercise their dogs off lead. This will provide an income to cover the cost of the refurbishment. We were hoping to purchase a hydrotherapy pool which would be housed in the large barn at the property and could be used for our own animals as well as hiring it out to members of the public but it was thought that this might not be the best time to do this due to the economic crisis and this has been put on hold until a later date.

North Clwyd Animal Rescue | Year ended 31 December 2021

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Financial review

The fund balance as at 31st December 2021 was £2,142,293 of which £2,013,045 is unrestricted funds and the trustees are satisfied that the charity is in a favourable position for the future.

Total income received in the year was £997,965 (2020 £1,279,863). A large amount of this income (£607,482) comprises donations and legacies received in the year. This figure includes Grants of £258,116, £72,000 of which are Local Government Covid Support Grants plus a restricted amount of £56,190 from the Corona virus Job Retention Scheme. We also received a renewable energy grant of £67,733 which was restricted.

The adoption fees amounting to £60,655 were down from last year due to COVID 19 restrictions. We do charge a minimum fee for our animals to help to cover the veterinary costs relating to that animal.

Activities

Activities for generating funds include income from the seven charity shops, plus the onsite reception shop, the café (Doris’s Bunker), the onsite veterinary clinic, Agria Pet Insurance Commission, stray fees for the boarding of stray dogs brought in from Flintshire and Denbighshire Councils and, of course, various Fundraising Events. We were unable to hold our Easter Open Day, and our Christmas Open Day but we held a very successful Dog Show at Hafod Arena and held our monthly Cars and Coffee Evenings during the summer. We held various online fundraisers which were well supported. These Activities amounted to a total income of £328,966 and after adding Investment income of £358 our total income for 2021 amounted to £997,965.

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Financial review

The total expenditure for the year is £837,877, of which £203,992 was spent raising funds, the majority of which was spent on trading costs. £633,885 was spent directly on the care of the animals, wages being the biggest but necessary expense to provide the standard of care needed to look after the number of animals in our care. We have an amazing band of regular volunteers who spend that extra time with the dogs, cats and rabbits, some of whom we are hoping to train in kennel duties. Other volunteers help in the laundry, café, shops and enrichment garden and we have volunteer fosterers and home-checkers.

Our Reserves

Our free reserves for the year ended 31st December 2021 amounted to £218,845 of which £35,010 has been designated to develop the indoor arena at Hafod Equestrian. The Trustees consider a level of reserves equivalent to 6 months expenditure is required which would be approximately £400,000.

Land Registry

Anne Owen and Neill Owen, both trustees, hold the title with the Land Registry on behalf of North Clwyd Animal Rescue for the Sanctuary Buildings at Maes Gwyn and the two charity shops at 2 Market Street, Abergele and 24 High Street, Denbigh.

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How we Operate

Structure, Governance and Management

The charity is governed by a constitution and is under the control of the Committee which is appointed each year at the Annual General Meeting. There are a maximum of 15 Trustees including the Chairman, Treasurer and Secretary. We look to recruit Trustees who can play an active role in the charity and they are normally elected at the AGM. If the trustees think it is advisable to elect a new trustee during the year, this is done by a vote at the Committee meeting.

Management Team

The trustees delegate day to day management to the following personnel:

Risk Policy

The trustees have assessed the major risks to which the charity is exposed and are satisfied that systems are in place to mitigate exposure to the major risks.

Investment Policy

The assets of the charity have increased and, in line with our Investment Policy with the addition of Little Pydew and Hafod Barn, an organisation review will be undertaken to ensure the Charity is in a healthy state to enable a successful management of these sites and development of agreed projects to improve the capabilities of the Charity.

Our Vets

We employ two part time Veterinary Surgeons: Alastair Wright BVMS, MRCVS and Laura Hudson BVSc, MRCVS

HR and H&S services

We enlisted the professional services of Ellis Whittam (now WorkNest) to oversee our Health & Safety Compliance and to give advice on Employment Law.

North Clwyd Animal Rescue | Year ended 31 December 2021

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How we Operate

Principal address: Independent examiner: Our Banks
Maes Gwyn DSG Castle Chambers Lloyds Bank plc, PO Box 1000, BX1 1LT
Trelogan 43 Castle Street Santander Business Banking, Bridle Road,
Holywell
CH8 9BD
Liverpool
L2 9TL
Bootle, L30 4GB
Virgin Money, Jubilee House, Gosforth,
Newcastle upon Tyne, NE3 4PL
Charity number: 515195

The trustees who served during the year and up to the date of signature of the financial statements were: -

Trustees Mrs A D Owen (treasurer)
Mr P Kimpton (chair) (Appointed 14 September 2021)
Mr A S Hobbs
Mrs B Y Davis
Mr D Roberts (Appointed 14 September 2021)
Mr J S Gawne
Ms K A Johnson (Appointed 14 September 2021)
Mr R N Owen
Ms S Blythe
Mrs S Holland (secretary) (Appointed 14 September 2021)
Mrs Y Davies
Mrs D Lloyd (Resigned 4 January 2021)
Mr M Stacy (Resigned 5April 2021)
Mrs J Stacey (Resigned 30 March 2021)
Ms M Ellis (Resigned 30 November 2021)
Mrs C Williams (Appointed 12 January 2021)
(Resigned 9 March 2022)

The Trustees' report was approved by the Board of Trustees.

26[th] October 2022 ..................................................................... Date................................................. Mrs A D Owen (Treasurer) Trustee

North Clwyd Animal Rescue | Year ended 31 December 2021

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NORTH CLWYD ANIMAL RESCUE

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2021

The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting page 14 Practice).

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year.

In preparing these financial statements, the trustees are required to:

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

North Clwyd Animal Rescue | Year ended 31 December 2021

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NORTH CLWYD ANIMAL RESCUE

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF NORTH CLWYD ANIMAL RESCUE

I report to the trustees on my examination of the financial statements of North Clwyd Animal Rescue (the charity) for the year ended 31 December 2021.

This report is made solely to the charity’s trustees, as a body, in accordance with section 145 of the Charities Act 2011. My work has been undertaken so that I might state to the charity’s trustees those matters I am required to state to them in this report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for my work, for this report, or for the opinions I have formed.

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 2011 Act).

I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all 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 examiner 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.

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

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

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 financial statements to be reached.

Jean Ellis BA FCA CTA

DSG Castle Chambers 43 Castle Street Liverpool L2 9TL

26[th] October 2022 Dated: ........................................

North Clwyd Animal Rescue | Year ended 31 December 2021

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NORTH CLWYD ANIMAL RESCUE

STATEMENT OF FINANCIAL ACTIVITIES

INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021

Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2021 2021 2021 2020 2020 2020
Notes £ £ £ £ £ £
Income and endowments from:
Donations and legacies 3 483,559 123,923 607,482 831,847 99,379 931,226
Charitable activities 4 60,655 - 60,655 73,106 - 73,106
Other trading activities 5 328,966 - 328,966 268,897 6,431 275,328
Investments 6 358 - 358 203 - 203
Other income 7 504 - 504 - - -
Total income 874,042 123,923 997,965 1,174,053 105,810 1,279,863
Expenditure on:
Raising funds 8 203,992 - 203,992 159,506 28,423 187,929
Charitable activities 9 542,181 91,704 633,885 539,186 87,361 626,547
Total expenditure 746,173 91,704 837,877 698,692 115,784 814,476
Net incoming resources before
transfers 127,869 32,219 160,088 475,361 (9,974) 465,387
Gross transfers between
funds 8,000 (8,000) - - - -
Net income for the year/
Net movement in funds 135,869 24,219 160,088 475,361 (9,974) 465,387
Fund balances at 1 January 2021
1,877,176 105,029 1,982,205 1,401,815 115,003 1,516,818
Fund balances at 31 December
2021 2,013,045 129,248 2,142,293 1,877,176 105,029 1,982,205

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

North Clwyd Animal Rescue | Year ended 31 December 2021

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NORTH CLWYD ANIMAL RESCUE

BALANCE SHEET

AS AT 31 DECEMBER 2021

2021 2020
Notes £ £ £ £
Fixed assets
Tangible assets 13 1,278,125 1,146,588
Investments 14 610,315 660,315
1,888,440 1,806,903
Current assets
Stocks 17 15,925 16,689
Debtors 18 205,433 132,042
Cash at bank and in hand 361,107 252,338
582,465 401,069
Creditors: amounts falling due within one
year 19 (152,361) (125,994)
Net current assets 430,104 275,075
Total assets less current liabilities 2,318,544 2,081,978
Creditors: amounts falling due after more
than one year 20 (176,251) (99,773)
Net assets 2,142,293 1,982,205
Income funds
Restricted funds 22 129,248 105,029
Unrestricted funds
Designated funds 23 35,010 165,630
General unrestricted funds 1,978,035 1,711,546
2,013,045 1,877,176
2,142,293 1,982,205

26[th] October 2022

The financial statements were approved by the Trustees on ........................................

.............................. Mrs A D Owen (treasurer) Trustee

North Clwyd Animal Rescue | Year ended 31 December 2021

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NORTH CLWYD ANIMAL RESCUE

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2021

2021 2020
Notes £ £ £ £
Cash flows from operating activities
Cash generated from operations 27 193,914 1,260,190
Investing activities
Purchase of tangible fixed assets (223,814) (485,889)
Proceeds from disposal of tangible fixed
assets 2020 5,166
Proceeds from disposal of subsidiaries 50,000 (659,952)
Proceeds from disposal of other investments - (363)
Investment income received 358 203
Net cash used in investing activities (168,290) (1,146,001)
Financing activities
Repayment of borrowings (10,000) -
Proceeds from new bank loans 100,000 -
Repayment of bank loans (6,855) (3,275)
Net cash generated from/(used in) financing
activities 83,145 (3,275)
Net increase in cash and cash equivalents 108,769 110,914
Cash and cash equivalents at beginning of year 252,338 141,424
Cash and cash equivalents at end of year 361,107 252,338

North Clwyd Animal Rescue | Year ended 31 December 2021

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NORTH CLWYD ANIMAL RESCUE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

Charity information

North Clwyd Animal Rescue is a charity registered with the Charity Commission for England and Wales and the governing constitution was adopted on 9 May 1984. The principal address is Maes Gwyn Sanctuary, Glan yr Afon Road, Trelogan, Nr Holywell, CH8 9BD.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's constitution, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: 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)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention.The principal accounting policies adopted are set out below.

The financial statements do not incorporate the results, assets and liabilities of the charity’s wholly owned subsidiaries, Worsteds Stud Farm Limited and Jaysea Enterprises (Investments) Limited. Consolidated accounts have not been prepared as these would not be materially different from the single entity financial statements as presented.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

North Clwyd Animal Rescue | Year ended 31 December 2021

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NORTH CLWYD ANIMAL RESCUE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Assets for distribution are recognised only when distributed. Assets given for use by the charity are recognised when receivable. Stocks of undistributed donated goods are not valued for balance sheet purposes.

Income from café and shop sales and fundraising income is recognised as earned (that is, as the related goods or services are provided).

No amounts are included in these financial statements for goods donated to charity shops or services donated by volunteers

1.5 Expenditure

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

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings 2% per annum on cost Leasehold land and buildings 2% per annum on cost Property improvements 10% per annum on cost Plant and equipment 20% per annum on cost Fixtures and fittings 20% per annum on cost Computers and IT equipment 33% per annum on cost Motor vehicles 25% per annum on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset and is recognised in the statement of financial activities.

The assets’ residual values, useful lives and depreciation methods are reviewed and adjusted prospectively if appropriate or if there is an indication of a significant change since the last reporting date.

The trustees consider that the estimated residual value of freehold property is such that any accumulated depreciation charge would be immaterial. Consequently no depreciation has been provided in the year.

North Clwyd Animal Rescue | Year ended 31 December 2021

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NORTH CLWYD ANIMAL RESCUE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

1.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.9 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.10 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

North Clwyd Animal Rescue | Year ended 31 December 2021

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NORTH CLWYD ANIMAL RESCUE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.12 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Donations and legacies
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2021 2021 2021 2020 2020 2020
£ £ £ £ £ £
Donations and gifts 153,572 - 153,572 159,210 1,569 160,779
Legacies receivable 195,794 - 195,794 75,248 - 75,248
Grants 134,193 123,923 258,116 135,000 97,810 232,810
Other - - 462,389 462,389
-
483,559
123,923 607,482 831,847 99,379 931,226

North Clwyd Animal Rescue | Year ended 31 December 2021 23

NORTH CLWYD ANIMAL RESCUE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

3 Donations and legacies (Continued)
Grants receivable for core
activities
HMRC CJRS grant -
56,190
56,190 - 97,810 97,810
Covid grants 72,000 - 72,000 120,000 - 120,000
Renewable energy grant - 67,733 67,733 - - -
Kickstart grant 61,893 - 61,893 - - -
Other 300 - 300 15,000 - 15,000
134,193 123,923 258,116 135,000 97,810 232,810

4 Charitable activities

Animal adoption fees

Unrestricted Unrestricted
funds funds
2021 2020
£ £
60,655 73,106

5 Other trading activities

Unrestricted Unrestricted Restricted Total
funds funds funds
2021 2020 2020 2020
£ £ £ £
Cafe income 34,241 43,431 - 43,431
Veterinary income 14,097 12,454 - 12,454
Fundraising events 33,542 26,125 5,504 31,629
Charity shop 190,960 141,498 - 141,498
Pet insurance commission 26,500 25,979 - 25,979
Stray fees 8,003 13,017 - 13,017
Other income 21,623 6,393 927 7,320
Other trading activities 328,966 268,897 6,431 275,328

North Clwyd Animal Rescue | Year ended 31 December 2021

24

NORTH CLWYD ANIMAL RESCUE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

6 Investments
Unrestricted Unrestricted
funds funds
2021 2020
£ £
Income from listed investments 293 -
Interest receivable 65 203
358 203
7 Other income
Unrestricted Unrestricted
funds funds
2021 2020
£ £
Net gain on disposal of tangible fixed assets 504 -

8 Raising funds

Unrestricted Unrestricted Restricted Total
funds funds funds
2021 2020 2020 2020
£ £ £ £
Fundraising and publicity
Other fundraising costs 3,694 1,307 - 1,307
Trading costs
Operating costs - cafe and charity shops 77,241 93,939 - 93,939
Staff costs 116,466 59,922 28,423 88,345
Support costs 6,591 4,338 - 4,338
Trading costs 200,298 158,199 28,423 186,622
203,992 159,506 28,423 187,929

North Clwyd Animal Rescue | Year ended 31 December 2021

25

NORTH CLWYD ANIMAL RESCUE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

9 Charitable activities
2021 2020
£ £
Staff costs 357,774 392,444
Depreciation and impairment 87,615 58,738
Insurance 22,051 17,727
Light and heat 16,213 11,819
Telephone 3,623 6,817
Veterinary supplies 48,063 49,547
Veterinary fees 2,158 2,700
Repairs and maintenance 18,714 14,353
Rent and rates 17,978 10,768
Motor expenses 6,618 2,605
Clothing and equipment 594 256
Cleaning and bedding 3,794 3,649
Waste disposal 6,858 5,361
Sanctuary food 2,809 4,457
Lab testing 4,064 3,358
Sundry expenses 4,283 4,161
603,209 588,760
Share of support costs (see note 10) 17,592 19,394
Share of governance costs (see note 10) 13,084 18,393
633,885 626,547
Analysis by fund
Unrestricted funds 542,181 539,186
Restricted funds 91,704 87,361
633,885 626,547

North Clwyd Animal Rescue | Year ended 31 December 2021

26

NORTH CLWYD ANIMAL RESCUE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

10 Support costs
Support costs Governance 2021 Support costs Governance 2020
costs costs
£ £ £ £ £ £
Printing, postage and
stationery 2,906 - 2,906 1,922 - 1,922
Computer and IT 2,981 - 2,981 4,753 - 4,753
Subscriptions and
employment services 4,521 - 4,521 5,888 - 5,888
Just giving and admin fees
3,499 - 3,499 1,682 - 1,682
Photocopier 1,372 - 1,372 5,719 - 5,719
Loss on disposal of fixed
assets - - - (1,000) - (1,000)
Health and safety 2,313 - 2,313 430 - 430
Audit fees - - - - 7,000 7,000
Accountancy - - - - 1,550 1,550
Legal and professional - 1,982 1,982 - 5,269 5,269
Accountancy fees - 11,470 11,470 - 2,201 2,201
Bank charges - 2,184 2,184 - 2,373 2,373
Bank loan interest - 4,039 4,039 - 4,338 4,338
17,592 19,675 37,267 19,394 22,731 42,125
Analysed between - 6,591 6,591 - 4,338 4,338
Trading 17,592 13,084 30,676 19,394 18,393 37,787
Charitable activities
17,592 19,675 37,267 19,394 22,731 42,125

Governance costs includes payments to the auditors of £nil (2020- £7,000) for audit fees and £nil (2020 £1,550) for other services.

11 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year (2020: £nil) and no trustees were reimbursed expenses (2020: no trustees).

12 Employees

The average monthly number of employees during the year was:

2021 2020
Number Number
Charity shops 13 9
Charitable activities 19 26
Total 32 35

North Clwyd Animal Rescue | Year ended 31 December 2021 27

NORTH CLWYD ANIMAL RESCUE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

12 Employees (Continued)
Employment costs 2021 2020
£ £
Wages and salaries 448,537 456,511
Social security costs 20,434 19,180
Other pension costs 5,269 5,098
474,240 480,789

There were no employees whose annual remuneration was more than £60,000.

North Clwyd Animal Rescue | Year ended 31 December 2021

28

NORTH CLWYD ANIMAL RESCUE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

13 Tangible fixed assets

Tangible fixed assets
Freehold land Leasehold land Property Plant and Fixtures and Computers and Motor vehicles Total
and buildings and buildings improvements equipment fittings IT equipment
£ £ £ £ £ £ £ £
Cost
At 1 January 2021 747,000 67,673 468,980 54,717 57,210 11,500 38,502 1,445,582
Additions - - 172,527 5,236 560 529 44,962 223,814
Disposals - - - - - - (24,951) (24,951)
At 31 December 2021 747,000 67,673 641,507 59,953 57,770 12,029 58,513 1,644,445
Depreciation and impairment
At 1 January 2021 - - 160,514 46,601 46,759 11,280 33,840 298,994
Depreciation charged in the year - - 64,150 7,910 6,271 293 8,991 87,615
Eliminated in respect of disposals - - - - - - (20,289) (20,289)
At 31 December 2021 - - 224,664 54,511 53,030 11,573 22,542 366,320
Carrying amount
At 31 December 2021 747,000 67,673 416,843 5,442 4,740 456 35,971 1,278,125
At 31 December 2020 67,673 308,466 8,117 10,450 220 4,662 1,146,588

North Clwyd Animal Rescue | Year ended 31 December 2021 29

NORTH CLWYD ANIMAL RESCUE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

13 Tangible fixed assets

(Continued)

Lloyds bank plc holds a legal charge over freehold land at Maes Gwyn, Holywell and the leasehold land and buildings at Market Street, Abergele

14 Fixed asset investments

Listed Other Total
investments investments
£ £
Cost or valuation
At 1 January 2021 363 659,952 660,315
Disposals - (50,000) (50,000)
At 31 December 2021 363 609,952 610,315
Carrying amount
At 31 December 2021 363 609,952 610,315
At 31 December 2020 363 659,952 660,315
2021 2020
Other investments comprise: Notes £ £
Investments in subsidiaries 15 609,952 659,952

15 Subsidiaries

Details of the charity's subsidiaries at 31 December 2021 are as follows:

Name of undertaking Registered Nature of business Class of % Held % Held
office shares held Indirect
Direct
Worsted Stud Farm Limited England and Wales Dormant Ordinary 100.00
Jaysea Enterprises England and Wales In liquidation Ordinary 100.00
(Investments) Limited
16 Financial instruments 2021 2020
£ £
Carrying amount of financial assets
Instruments measured at fair value through profit or loss 363 363
17 Stocks
2021 2020
£ £
Finished goods and goods for resale 15,925 16,689

North Clwyd Animal Rescue | Year ended 31 December 2021 30

NORTH CLWYD ANIMAL RESCUE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

18 Debtors
2021 2020
Amounts falling due within one year: £ £
Trade debtors 2,890 9,484
Other debtors 20,812 18,880
Prepayments and accrued income 181,731 103,678
205,433 132,042
19 Creditors: amounts falling due within one year
2021 2020
Notes £ £
Bank loans 21 23,281 6,614
Other borrowings 20,000 30,000
Other taxation and social security 6,677 6,085
Trade creditors 71,327 65,219
Other creditors 9,415 5,507
Accruals and deferred income 21,661 12,569
152,361 125,994
20 Creditors: amounts falling due after more than one year
2021 2020
Notes £ £
Bank loans 21 176,251 99,773
21 Loans and overdrafts
2021 2020
£ £
Bank loans 199,532 106,387
Other loans 20,000 30,000
219,532 136,387
Payable within one year 43,281 36,614
Payable after one year 176,251 99,773
Amounts included above which fall due after five years:
Payable by instalments 55,751 63,492
**North Clwyd Animal Rescue Year ended 31 December 2021** 31

FOR THE YEAR ENDED 31 DECEMBER 2021

NORTH CLWYD ANIMAL RESCUE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

21 Loans and overdrafts

(Continued)

Included in bank loans is £100,000 (2020: £nil in respect of a Coronavirus Business Interruption Loan which is secured by a legal charge over the charity land at Maes Gwyn, Holywell and the charity shop in Abergele.

This bank loan is repayable by equal monthly instalments of £1,667. Interest is charged at Base Rate plus 2.29% per annum.

Also included in bank loans is £99,532 (2020: £106,387) which relates to the purchase of the Denbigh charity shop in 2012 which is secured by a legal charge over the charity land at Maes Gwyn Farm, Flintshire and the charity shop in Abergele. Interest is charged at Base Rate plus 2.80% per annum.

The other loan is from Jean Sainsbury animal Welfare Trust and is unsecured and interest free. Following the outbreak of the Coronavirus pandemic the requirement to repay the loan was suspended but the loan balance is now being repaid by instalments.

North Clwyd Animal Rescue | Year ended 31 December 2021 32

NORTH CLWYD ANIMAL RESCUE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

22 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Income Expenditure Balance at Income Expenditure Transfers Balance at
1 January 2020 1 January 2021 31 December
2021
£ £ £ £ £ £ £ £
Vets development fund 30,434 - (8,725) 21,709 - (8,725) - 12,984
Doris's bunker cafe 29,634 - (4,233) 25,401 - (4,233) - 21,168
Puppy parlour 8,149 - (1,164) 6,985 - (1,164) - 5,821
Drainage fund 4,050 - (450) 3,600 - (450) - 3,150
Paddock refurbishment 35,014 - (2,486) 32,528 - (2,486) - 30,042
Barn roof 6,321 7,724 - 14,045 - - - 14,045
Cafe extension 761 - - 761 - (761) - -
Drive resurface 640 276 (916) - - - - -
HMRC CJRS - 97,810 (97,810) - 56,190 (56,190) - -
Renewable Energy Grants - - - - 67,733 (17,695) (8,000) 42,038
115,003 105,810 (115,784) 105,029 123,923 (91,704) (8,000) 129,248

North Clwyd Animal Rescue | Year ended 31 December 2021

33

NORTH CLWYD ANIMAL RESCUE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

22 Restricted funds

Vets development fund – this fund was used to construct and partially equip a new vet surgery building on NCAR’s main site at Trelogan, the purpose of which was to enable certain types of operation to be performed on-site rather than transport animals to other vet practices off-site. Now completed, the fund will be reduced by an amount equal to the depreciation charge each year.

Doris Bunker café fund – the fund was used to construct and furnish a new café building at the main NCAR site in Trelogan. The café is normally open 7 days a week and provides a wide variety of refreshments and food to staff and volunteers and in so doing represents an additional source of income to the rescue. The café also acts as a comfortable and pleasant venue for staff meetings and volunteer induction sessions. The café was named in memory of the lady whos legacy enabled the café to be built.

Puppy parlour fund – this fund was used to modernize part of an existing building used specifically to accommodate puppies and their mothers.

Drainage Fund - funding for the paddocks and the run behind the new stray block.

Paddock refurbishment fund – this fund is to upgrade and fully modernise the secure exercise paddock used by our resident dogs with staff or volunteer handlers, dividing it into two separate areas and including the addition of agility and climbing apparatus to further stimulate and challenge the dogs as well as to assess and/or advise on dog behaviour (with existing owners if applicable). Some fundraising events can also be held within the paddock.

Barn Roof - income raised through fundraising towards replacing the roof in the Barn.

Cafe Extension - funds raised towards an extension for the cafe.

Drive Resurface - donations received towards resurfacing the Drive.

Renewable Energy Grants - Funding received from Denbighshire County Council of £59,733 towards energy efficient lighting and heating and an electrical vehicle.

North Clwyd Animal Rescue | Year ended 31 December 2021

34

NORTH CLWYD ANIMAL RESCUE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

23 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Incoming Resources Transfers Balance at Incoming Resources Transfers Balance at
1 January 2020 resources expended 1 January 2021 resources expended 31 December
2021
£ £ £ £ £ £ £ £ £
Hafod development fund - - (9,198) 174,828 165,630 - (130,620) - 35,010
- - (9,198) 174,828 165,630 - (130,620) - 35,010

The Wells-Kendrew legacy included a property with a large indoor arena, stabling and 35 acres of land which the trustees propose to use for rescued horses, ponies and donkeys. In 2020, the balance of the legacy income from this estate of £203,217 (excluding the property) has been designated to develop the indoor arena and site at Hafod Barn.

North Clwyd Animal Rescue | Year ended 31 December 2021 35

NORTH CLWYD ANIMAL RESCUE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

24 Analysis of net assets between funds
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2021 2021 2021 2020 2020 2020
£ £ £ £ £ £
Fund balances at 31
December 2021 are
represented by:
Tangible assets
1,148,877
129,248 1,278,125 1,070,857 75,731 1,146,588
Investments
610,315
- 610,315 660,315 - 660,315
Current assets/(liabilities)
430,104
- 430,104 245,777 29,298 275,075
Long term liabilities
(176,251)
- (176,251) (99,773) - (99,773)
2,013,045 129,248 2,142,293 1,877,176 105,029 1,982,205

25 Operating lease commitments

At the reporting end date the charity had outstanding commitments for future minimum lease payments under noncancellable operating leases, which fall due as follows:

2021 2020
£ £
Within one year 38,111 46,176
Between two and five years 35,720 47,920
In over five years - 1,455
73,831 95,551

26 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2021 2020
£ £
Aggregate compensation 68,859 64,661

North Clwyd Animal Rescue | Year ended 31 December 2021

36

NORTH CLWYD ANIMAL RESCUE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

26 Related party transactions

(Continued)

Transactions with related parties

During the year the charity entered into the following transactions with related parties:

Sale of goods Purchase of goods
2021 2020 2021 2020
£ £ £ £
Entities with control, joint control or significant
influence over the company 602 205 120 399
602 205 120 399

The transactions above are with Maes Gwyn Boarding kennels, an entity related through Anne and Neill Owen, trustees of the charity. Services received above relate to amounts payable for the provision of a water supply, staff and other charges. Services provided to Maes Gwyn Boarding Kennels include the supply of animal food, advertising and vet services.

The following amounts were outstanding at the reporting end date:

Amounts owed by related Amounts owed by related Amounts owed by related Amounts owed by related
parties parties
2021 2020
Balance Net Balance Net
£ £ £ £
Entities with control, joint control, or significant
influence over the company - - 348 348
- - 348 348

Anne and Neill Owen are trustees of the charity and their daughter is employed by the charity.

There were no other related party transactions in the year.

North Clwyd Animal Rescue | Year ended 31 December 2021

37

NORTH CLWYD ANIMAL RESCUE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

27 Cash generated from operations 2021 2020
£ £
Surplus for the year 160,088 465,387
Adjustments for:
Investment income recognised in statement of financial activities (358) (203)
Gain on disposal of tangible fixed assets (504) -
Depreciation and impairment of tangible fixed assets 87,615 58,738
Movements in working capital:
Decrease/(increase) in stocks 764 (6,165)
(Increase)/decrease in debtors (73,391) 760,205
Increase/(decrease) in creditors 19,700 (17,772)
Cash generated from operations 193,914 1,260,190
28 Analysis of changes in net funds
At 1 January 2021 Cash flows At 31 December
2021
£ £ £
Cash at bank and in hand 252,338 108,769 361,107
Loans falling due within one year (36,614) (6,667) (43,281)
Loans falling due after more than one year (99,773) (76,478) (176,251)
115,951 25,624 141,575

North Clwyd Animal Rescue | Year ended 31 December 2021

38

••• NORTH CLWYD q•ANIMAL RESCUE