2023-12-31-accounts

Charity registration number 515195

NORTH CLWYD ANIMAL RESCUE

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

NORTH CLWYD ANIMAL RESCUE

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees	Ms S Blythe
	Ms N Cooke	(Appointed 18 July 2023)
	Mrs Y Davies
	Mr J S Gawne
	Mr A S Hobbs
	Mr T Hodnett	(Appointed 26 March 2024)
	Mrs A D Owen (treasurer)
	Mr R N Owen
	Mr D Roberts
	Mr J Owen	(Appointed 24 January 2023)
Charity number	515195
Principal address	Maes Gwyn
	Trelogan
	Holywell
	CH8 9BD
Independent examiner	DSG
	Castle Chambers
	43 Castle Street
	Liverpool
	L2 9TL

NORTH CLWYD ANIMAL RESCUE

CONTENTS

	Page
Trustees' report	1 - 4
Statement of trustees' responsibilities	5
Independent examiner's report	6
Statement of financial activities	7
Balance sheet	8
Statement of cash flows	9
Notes to the financial statements	10 - 27

NORTH CLWYD ANIMAL RESCUE

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2023

The trustees present their annual report and financial statements for the year ended 31 December 2023.

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).

Objectives and activities

The object for which North Clwyd Animal Rescue was established is 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 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 and also the cost of living is having an effect on both the number of dogs needing to come into rescue, we have on average of around 400 on our waiting list and also there are not the same number of people applying to adopt due to the cost of owning an animal. This is not a unique issue facing this area, other rescues across the country are experiencing the same problems.

Public benefit

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

Achievements and performance

Unfortunately, the covid pandemic continues to affect the charity. We continue to see a marked increase in the number of people wanting to relinquish their animals, dogs in particular, due to the dramatic increase in pet ownership with the number of dogs in the UK increasing from 9 million prior to covid to more than 13 million. All rescues across the UK are in the same position and have long waiting lists for animals to come in. We are also experiencing a decrease in the number of potential adopters which is probably due to the economic climate and the rise in veterinary costs which in turn make insurance more expensive.

We admitted a total of 741 animals during the year, 350 dogs, 369 cats, 14 rabbits and 8 equines. We rehomed a total of 816 animals, 389 dogs, 395 cats, 12 rabbits and guinea pigs and 20 equines. we have continued to use an appointment system for prospective adopters to visit the rescue which worked very well.

There was an increase in the number of stray dogs from Flintshire, Denbighshire and Anglesey County Councils. During 2023 we received 221 strays compared to 165 in 2022, only 78 of which were claimed. Dogs are still coming in without microchips or the chips have not been updated when the dog has been passed on or sold to new owners.

• 1 -

NORTH CLWYD ANIMAL RESCUE

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

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. 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 onsite Veterinary surgery neutered a total of 426 animals during 2023 including 156 dogs, 258 cats, 11 rabbits and a ferret. 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 ongoing veterinary care. We do also neuter a number of feral cats who are then usually returned to their original surroundings

It was our intention to use Hafod Barn in Trefnant for rescuing abandoned and unwanted equines and we had made significant improvements to the indoor arena which was hired out to various groups and individuals to provide an income to support the equines. However this was not as successful as we had hoped and was running at a loss which, as trustees we could not allow to continue. Consequently, we made the difficult decision in the summer of 2023 to sell the property. We had taken in 20 horses and ponies but after rehoming the majority of them, the remainder were relocated to our main site at Maes Gwyn in Trelogan. The property has been split into two lots and the sale of the land and arena is now going through, however, the house is still on the market.

Our play fields at Little Pydew in Prestatyn which we hire out to members of the public to exercise their dogs are proving very popular and bring in a regular income together with the rent from the bungalow.

We very much appreciate all our wonderful volunteers although, we are finding it increasingly difficult to recruit volunteers in our charity shops, in our onsite laundry and cafe and those who could help with gardening and maintenance. We have had a lot of applications for group visits from corporate companies. They not only help with the animals, they also do painting, cleaning and gardening and this gives them a good insight into the work of our charity.

How we promote the Charity

Our newly designed, more informative 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 also provide details of the Charity to the wider audience by using Social Media Marketing to promote the events we hold plus 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 comply fully with their Code of Practice to provide the best possible standards for all the animals in our care. Membership provides us with the opportunity to liase with a network of other animal charities throughout the UK.

• 2 -

NORTH CLWYD ANIMAL RESCUE

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

Financial review

Total income received in the year was £908,091 (2022 £1,116,866). £155,445 of which is comprised of donations, £181,444 of legacies received in the year and a grant of £10,000 from the Welsh Lottery and £750 via the ADCH.

The Charitable activities figure of £65,043 is the money received from Adoption Fees. We do charge a minimum fee for our animals to help to cover the veterinary costs which includes neutering, spaying, vaccinations, worming, flea treatment and any other treatments that are needed such as blood tests, x rays and dentals. We are seeing a lot more neglect amongst the dogs coming in as strays which again, is mainly due to people not being able to afford to go to the vets when their animal needs treatment.

Other trading activities amounted to a total of £493.748. This figure includes income from our 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. (See Note 5) We were unable to hold our Easter Open Day, and our Christmas Open Day but we held a successful Dog Show at Hafod Arena and held our monthly Cars and Coffee Evenings during the summer. Investment income totalled £1,661.

The total unrestricted expenditure for the year was £1,073,501 which was an increase of £95,645, £279,890 was spent raising funds and £793,611, 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.

The charity fund balances as at 31st December 2023 were £2,403,889 and the trustees are satisfied that the charity is in a satisfactory position for the future.

Reserves policy

It is the policy of the Charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent of six months’ expenditure which would be approximately £450,000. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

Our free reserves defined as general unrestricted reserves less the value of tangible fixed assets used operationally by the charity net of loans secured on them, stood at £1,360,658 for the year ended 31st December 2023 which includes £1,045,000 in respect of the current asset investment- property for resale at Hafod Barn, Trefnant.

Major risks

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.

Plans for future periods

We are looking to completely refurbish or possibly relocate the kennels in our big barn which houses on average 40 dogs.

This is a huge project which we hope will be partly funded by grants, fundraising and some of the money from the sale of Hafod.

The general site infrastructure needs improvement with the largest financial cost being the drainage system on site as it needs to be replaced to prevent water from the fields above Maes Gwyn flowing through the kennels and across the courtyard during spells of heavy rainfall, This project will also improve the courtyard, site drive and path ways.

Structure, governance and management

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

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NORTH CLWYD ANIMAL RESCUE

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

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

Ms S Blythe Ms N Cooke (Appointed 18 July 2023) Mrs B Y Davis (Resigned 20 August 2024) Mrs Y Davies Mr J S Gawne Mr A S Hobbs Mr T Hodnett (Appointed 26 March 2024) Mrs S Holland (secretary) (Resigned 20 June 2024) Ms K A Johnson (Resigned 18 July 2023) Mr P Kimpton (chair) (Resigned 16 January 2024) Mrs A D Owen (treasurer) Mr R N Owen Mr D Roberts Mrs L Sargent (Resigned 16 January 2024) Mr G Smith (Appointed 16 January 2024 and resigned 1 July 2024) Ms A Winstanley (Appointed 18 July 2023 and resigned 20 August 2024) Mr J Owen (Appointed 24 January 2023)

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

Owain Horton – General Manager Sanctuary and Charity Shops Nicky Owen – Fundraising and HR Peter Moult – Finance and Payroll Rachel Parry – Dog Supervisor Sarah Goodwin – Cat Supervisor Anne Owen (Trustee) – Voluntary Advisor Adam Hobbs (Trustee) - Dog Behaviour Advisor

We employ two part time Veterinary Surgeons: Alastair Wright BVMS, MRCVS and Laura Hudson BVSc, MRCVS . Ellis Whittam (now Work Nest) oversee our Health and Safety Compliance and give advice on Employment Law.

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

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

Mrs A D Owen (treasurer) Trustee

10 September 2024

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NORTH CLWYD ANIMAL RESCUE

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2023

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 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:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

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.

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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 2023.

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:

• 1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or

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

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

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Jean Ellis BA FCA CTA

DSG

Castle Chambers 43 Castle Street Liverpool L2 9TL

Dated: 10 September 2024

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NORTH CLWYD ANIMAL RESCUE

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2023

		Unrestricted	Restricted	Total	Unrestricted	Restricted	Total
		funds	funds		funds	funds
		2023	2023	2023	2022	2022	2022
	Notes	£	£	£	£	£	£
Income from:
Donations and legacies	3	328,658	18,981	347,639	537,205	15,349	552,554
Charitable activities	4	65,043	-	65,043	76,703	-	76,703
Other trading activities	5	493,748	-	493,748	484,558	-	484,558
Investments	6	1,661	-	1,661	3,051	-	3,051
Total income		889,110	18,981	908,091	1,101,517	15,349	1,116,866
Expenditure on:
Raising funds	7	279,890	-	279,890	246,607	-	246,607
Charitable activities	8	793,611	34,260	827,871	707,440	23,809	731,249
Total expenditure		1,073,501	34,260	1,107,761	954,047	23,809	977,856
Net gains on
investments	13	322,256	-	322,256	-	-	-
Net income/(expenditure) and
movement in funds		137,865	(15,279)	122,586	147,470	(8,460)	139,010
Reconciliation of funds:
Fund balances at 1 January
2023		2,160,515	120,788	2,281,303	2,013,045	129,248	2,142,293
Fund balances at 31
December 2023		2,298,380	105,509	2,403,889	2,160,515	120,788	2,281,303

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

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NORTH CLWYD ANIMAL RESCUE

BALANCE SHEET

AS AT 31 DECEMBER 2023

		2023			2022
	Notes	£	£		£	£
Fixed assets
Tangible assets	15		1,047,775			1,250,953
Investments	16		415			596,577
			1,048,190			1,847,530
Current assets
Stocks	18	13,067			19,730
Debtors	19	73,790			128,645
Investments	20	1,045,000			-
Cash at bank and in hand		377,799			553,478
		1,509,656			701,853
Creditors: amounts falling due within	21
one year		(110,624)			(118,485)
Net current assets			1,399,032			583,368
Total assets less current liabilities			2,447,222			2,430,898
Creditors: amounts falling due after
more than one year	22		(43,333)			(149,595)
Net assets			2,403,889			2,281,303
The funds of the charity
Restricted income funds	25		105,509			120,788
Unrestricted funds			2,298,380			2,160,515
			2,403,889			2,281,303

The financial statements were approved by the trustees on 10 September 2024

Mrs A D Owen (treasurer) Trustee

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NORTH CLWYD ANIMAL RESCUE

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023

		2023		2022
	Notes	£	£	£	£
Cash flows from operating activities
Cash (absorbed by)/generated from	31
operations			(53,004)		276,734
Investing activities
Purchase of tangible fixed assets		(11,439)		(57,850)
Proceeds from disposal of subsidiaries		-		13,738
Investment income received		1,661		3,051
Net cash used in investing activities			(9,778)		(41,061)
Financing activities
Repayment of borrowings		-		(20,000)
Repayment of bank loans		(112,897)		(23,302)
Net cash used in financing activities			(112,897)		(43,302)
Net (decrease)/increase in cash and cash
equivalents			(175,679)		192,371
Cash and cash equivalents at beginning of year			553,478		361,107
Cash and cash equivalents at end of year			377,799		553,478

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NORTH CLWYD ANIMAL RESCUE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

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 subsidiary, Worsteds Stud Farm 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 or grantors 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.

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.

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.

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NORTH CLWYD ANIMAL RESCUE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

(Continued)

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.

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NORTH CLWYD ANIMAL RESCUE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

(Continued)

1.7 Fixed asset investments

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in net income/(expenditure) for the year.

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.

Other 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.

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.

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NORTH CLWYD ANIMAL RESCUE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

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.

1.14 Current asset investments

Current asset investments are assets which are held for resale or pending their sale and are valued at fair value.

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.

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NORTH CLWYD ANIMAL RESCUE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

3	Donations and legacies
		Unrestricted		Restricted			Total	Unrestricted		Restricted			Total
			funds		funds				funds		funds
			2023		2023		2023		2022		2022		2022
			£		£		£		£		£		£
	Donations and gifts		146,464		8,981		155,445		139,422		5,349		144,771
	Legacies receivable		181,444		-		181,444		372,331		-		372,331
	Grants		750		10,000		10,750		25,452		10,000		35,452
			328,658		18,981		347,639		537,205		15,349		552,554
	Grants receivable for
	core activities
	Kickstart grant		-		-		-		1,882		-		1,882
	Emergency business
	Fund		-		-		-		20,000		-		20,000
	Charities Trust -
	Hydrotherapy Pool		-		-		-		-		10,000		10,000
	Support Adoption for Pets		-		-		-		2,070		-		2,070
	ADCH		750		-		750		1,500		-		1,500
	Wales Lottery		-		10,000		10,000		-		-		-
			750		10,000		10,750		25,452		10,000		35,452

4 Charitable activities

Charitable activities
	Unrestricted	Unrestricted
	funds	funds
	2023	2022
	£	£
Animal adoption fees	65,043	76,703

• 14 -

NORTH CLWYD ANIMAL RESCUE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

5 Other trading activities

				Unrestricted	Unrestricted	Unrestricted	Unrestricted
					funds		funds
					2023		2022
					£		£
	Cafe income				69,084		60,917
	Veterinary income				10,130		12,707
	Fundraising events				38,833		38,169
	Charity shop				289,555		262,257
	Pet insurance	commission			21,600		21,708
	Stray fees				18,474		15,825
	Other income				46,072		72,975
	Other trading activities				493,748		484,558
6	Investments
				Unrestricted		Unrestricted
					funds		funds
					2023		2022
					£		£
	Income from listed investments				-		2,869
	Interest receivable				1,661		182
					1,661		3,051
7	Raising funds
				Unrestricted		Unrestricted
					funds		funds
					2023		2022
					£		£
	Fundraising and publicity
	Other fundraising costs				1,106		2,969
	Trading costs
	Operating costs - cafe and charity shops				113,464		105,515
	Staff costs				159,652		132,393
	Support costs				5,668		5,730
	Trading costs				278,784		243,638
					279,890		246,607

• 15 -

NORTH CLWYD ANIMAL RESCUE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

8 Charitable activities

	2023		2022
	£		£
Staff costs	494,549		434,340
Depreciation and impairment	88,035		85,022
Insurance	34,122		24,140
Light and heat	21,083		18,468
Telephone	1,717		3,399
Veterinary supplies	68,422		55,944
Veterinary fees	10,005		13,790
Repairs and maintenance	29,723		23,564
Rent and rates	11,928		7,982
Motor expenses	4,593		6,533
Clothing and equipment	1,232		1,022
Cleaning and bedding	6,254		5,151
Waste disposal	10,226		8,330
Sanctuary food	5,441		2,604
Lab testing	5,344		4,407
Sundry expenses	4,134		4,413
	796,808		699,109
Share of support costs (see note 9)	19,556		20,681
Share of governance costs (see note 9)	11,507		11,459
	827,871		731,249
Analysis by fund
Unrestricted funds	793,611		707,440
Restricted funds	34,260		23,809
	827,871		731,249

• 16 -

NORTH CLWYD ANIMAL RESCUE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

9 Support costs allocated to activities

Support costs allocated to activities
	2023		2022
	£		£
Printing, post and stationery	1,747		2,466
Computer and IT	4,272		4,129
Subscriptions and employment services	5,154		4,452
Online fees	4,791		4,883
Photocopier	416		478
Health and safety	3,176		4,273
Governance costs	17,175		17,189
	36,731		37,870
Analysed between:
Fundraising	5,668		5,730
Charitable activities	31,063		32,140
	36,731		37,870
	2023		2022
Governance costs comprise:	£		£
Audit/independent examination fees	3,645		3,000
Legal and professional	1,929		452
Accountancy fees	2,738		3,268
Bank charges	2,573		2,498
Bank loan interest	6,290		7,971
	17,175		17,189

Governance costs includes payments to the independent examiner of £3,645 (2022: £nil ) and payments to the auditor of £nil (2022: £3,000).

10	Net movement in funds	2023	2022
		£	£
	The net movement in funds is stated after charging/(crediting):
	Fees payable for the independent examination of the charity's financial
	statements	3,645	-
	Fees payable for the audit of the charity's financial statements	-	3,000
	Depreciation of owned tangible fixed assets	88,035	85,022

11 Trustees

None of the trustees (or any persons connected with them) received any remuneration during the year, and no trustees were reimbursed expenses in the period (2022: two trustees were reimbursed £120)

• 17 -

NORTH CLWYD ANIMAL RESCUE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

12 Employees

The average monthly number of employees during the year was:

The average monthly number of employees during the year was:
	2023		2022
	Number		Number
Charity shops	13		13
Charitable activities	22		21
Total	35		34
Employment costs	2023		2022
	£		£
Wages and salaries	607,417		535,766
Social security costs	37,425		23,734
Other pension costs	9,359		7,233
	654,201		566,733
There were no employees whose annual remuneration was more than £60,000.

Remuneration of key management personnel

The remuneration of key management personnel was as follows:

			2023		2022
			£		£
	Aggregate compensation		101,122		93,019
13	Gains and losses on investments
		Unrestricted		Unrestricted
			funds		funds
			2023		2022
	Gains/(losses) arising on:		£		£
	Revaluation of investments		322,256		-

14 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

• 18 -

	Total			£		1,702,295	11,439	(177,192)		1,536,542			451,342	88,035	(50,610)		488,767			1,047,775			1,250,953
	Motor	vehicles		£		58,513	-	-		58,513			33,783	11,241	-		45,024			13,489			24,730
	Computers	and IT	equipment	£		12,029	-	-		12,029			11,807	221	-		12,028			1			222
	Fixtures and	fittings		£		59,823	2,046	-		61,869			55,896	2,093	-		57,989			3,880			3,927
	Plant and	equipment		£		70,129	-	-		70,129			56,479	4,828	-		61,307			8,822			13,650
	Property	improvements		£		687,128	9,393	(177,192)		519,329			293,377	69,652	(50,610)		312,419			206,910			393,751
	Leasehold	land and	buildings	£		67,673	-	-		67,673			-	-	-		-			67,673			67,673
	Freehold land	and buildings		£		747,000	-	-		747,000			-	-	-		-			747,000			747,000
Tangible fixed assets					Cost	At 1 January 2023	Additions	Transfer to held for sale		At 31 December 2023		Depreciation and impairment	At 1 January 2023	Depreciation charged in the year	Transfer to held for sale		At 31 December 2023		Carrying amount	At 31 December 2023			At 31 December 2022
15

NORTH CLWYD ANIMAL RESCUE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

15 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

16 Fixed asset investments

		Listed		Other		Total
	investments		investments
		£		£		£
Cost or valuation
At 1 January 2023		363		596,214		596,577
Valuation changes		52		(6,214)		(6,162)
Transfer to current asset investments		-	(590,000) (590,000)
At 31 December 2023		415		-		415
Carrying amount
At 31 December 2023		415		-		415
At 31 December 2022		363		596,214		596,577

During the year, land and property held by the subsidiary company , Worsted Stud Farm Limited, was gifted up to North Clwyd Animal Rescue. The charity is holding this property pending its sale and has therefore transferred the value of the property from fixed asset investments to current asset investments.

					2023	2023		2022
	Other investments comprise:		Notes			£		£
	Investments in subsidiaries		17			-		596,214
17	Subsidiaries
	Details of the charity's subsidiaries at 31 December 2023 are as follows:
	Name of undertaking	Registered	Nature of business	Class of			% Held
		office		shares held		**Direct **		Indirect
	Worsted Stud Farm Limited	England and	Dormant	Ordinary		100.00
		Wales
18	Stocks
					2023			2022
						£		£
	Finished goods and goods for resale				13,067			19,730

• 20 -

NORTH CLWYD ANIMAL RESCUE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

19 Debtors

19	Debtors
		2023		2022
	Amounts falling due within one year:	£		£
	Trade debtors	17,011		8,344
	Other debtors	11,292		17,211
	Prepayments and accrued income	45,487		103,090
		73,790		128,645
20	Current asset investments
		2023		2022
		£		£
	Property held for sale	1,045,000		-

During the year, land and property held by the subsidiary company, Worsted Stud Farm Limited, with a value of £590,000, was gifted up to North Clwyd Animal Rescue.

The charity is now holding this property pending its sale and has therefore transferred the value of the property from fixed asset investments to current asset investments.

The trustees have obtained updated valuations from two independent estate agents who have valued the property at £1,045,000 which the trustees consider to be fair value.

21 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
		2023	2022
	Notes	£	£
Bank loans	23	20,000	26,635
Other taxation and social security		10,573	8,045
Trade creditors		59,835	58,697
Other creditors		12,668	10,310
Accruals and deferred income		7,548	14,798
		110,624	118,485

22 Creditors: amounts falling due after more than one year

		2023	2022
	Notes	£	£
Bank loans	23	43,333	149,595

• 21 -

NORTH CLWYD ANIMAL RESCUE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

23 Loans and overdrafts

Loans and overdrafts
	2023		2022
	£		£
Bank loans	63,333		176,230
Payable within one year	20,000		26,635
Payable after one year	43,333		149,595
Amounts included above which fall due after five years:
Payable by instalments	-		54,414

Included in bank loans is £63,333 (2022: £83,333 ) 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.

The previous year also included bank loans of £92,897 which related to the purchase of the Denbigh charity shop in 2012 which was 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.This loan was repaid in full in 2023.

24 Retirement benefit schemes

Retirement benefit schemes
	2023	2022
Defined contribution schemes	£	£
Charge to profit or loss in respect of defined contribution schemes	9,359	7,233

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

• 22 -

NORTH CLWYD ANIMAL RESCUE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

25 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

	At 1 January	At 1 January	Incoming	Incoming	Resources	Resources		At 31
		2023	resources		expended		December
								2023
		£		£		£		£
Vet's development fund		7,984		-		(5,000)		2,984
Doris's bunker cafe		16,935		-		(4,233)		12,702
Puppy parlour		4,622		-		(1,200)		3,422
Drainage fund		2,700		-		(450)		2,250
Paddock refurbishment		27,556		-		(2,936)		24,620
Barn roof		19,389		5,186		-		24,575
Renewable Energy Grants		31,597		-		(10,441)		21,156
Hydrotherapy Pool		10,005		-		-		10,005
Field shelters		-		3,430		-		3,430
Kennel refurbishment		-		365		-		365
Wales Lottery		-		10,000		(10,000)		-
		120,788		18,981		(34,260)		105,509
Previous year:	At 1 January		Incoming		Resources			At 31
		2022	resources		expended		December
								2022
		£		£		£		£
Vet's development fund		12,984		-		(5,000)		7,984
Doris's bunker cafe		21,168		-		(4,233)		16,935
Puppy parlour		5,821		-		(1,199)		4,622
Drainage fund		3,150		-		(450)		2,700
Paddock refurbishment		30,042		-		(2,486)		27,556
Barn roof		14,045		5,344		-		19,389
Renewable Energy Grants		42,038		-		(10,441)		31,597
Hydrotherapy Pool		-		10,005		-		10,005
		129,248		15,349		(23,809)		120,788

• 23 -

NORTH CLWYD ANIMAL RESCUE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

25 Restricted funds

(Continued)

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 6 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 (wih 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

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

Hydrotherapy Pool - Funding for Hydrotherapy facilities at Little Pydew.

We received £10,000 from Wales Lottery/Loteri Cymru towards on site maintenance.

26 Analysis of net assets between funds

	Unrestricted	Restricted	Restricted	Total
	funds		funds
	2023		2023	2023
	£		£	£
At 31 December 2023:
Tangible assets	980,640		67,135	1,047,775
Investments	415		-	415
Current assets/(liabilities)	1,360,658		38,374	1,399,032
Long term liabilities	(43,333)		-	(43,333)
	2,298,380		105,509	2,403,889

• 24 -

NORTH CLWYD ANIMAL RESCUE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

26 Analysis of net assets between funds

Analysis of net assets between funds				(Continued)
	Unrestricted	Restricted		Total
	funds		funds
	2022		2022	2022
	£		£	£
At 31 December 2022:
Tangible assets	1,140,170		110,783	1,250,953
Investments	596,577		-	596,577
Current assets/(liabilities)	573,363		10,005	583,368
Long term liabilities	(149,595)		-	(149,595)
	2,160,515		120,788	2,281,303

27 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

	At 1 January	At 1 January		Incoming	Resources	Resources	Gains and	Gains and		At 31
		2023	resources		expended			losses	December
										2023
		£		£		£		£		£
General funds		2,160,515		889,110	(1,073,501)			322,256		2,298,380
Previous year:	At 1 January			Incoming	Resources		Gains and			At 31
		2022	resources		expended			losses	December
										2022
		£		£		£		£		£
Hafod development fund		35,010		-		(35,010)		-		-
General funds		1,978,035		1,101,517		(919,037)		-		2,160,515
		2,013,045		1,101,517		(954,047)		-		2,160,515

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) was designated to develop the indoor arena and site at Hafod Barn.

• 25 -

NORTH CLWYD ANIMAL RESCUE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

28 Operating lease commitments

Lessee

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

	2023	2022
	£	£
Within one year	28,909	37,295
Between two and five years	75,764	29,461
In over five years	14,704	-
	119,377	66,756

29 Related party transactions

Transactions with related parties

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

	Sale of	goods	Purchase	of goods
	2023	2022	2023	2022
	£	£	£	£
Entities with control, joint control or significant
influence over the company	4,761	854	2,301	-
	4,761	854	2,301	-

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.

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

During the year, trustees donated £731 to the charity.

There were no other related party transactions in the year.

30 Contingent assets

As at the year end, the charity had been notified of legacies where the value of these estates was uncertain as the executors had not yet compiled the estate accounts at the date of signing these accounts. Therefore no amount has been accrued in respect of these legacies which are estimated to be in excess / in the region of £142,500 (2022: £nil).

• 26 -

NORTH CLWYD ANIMAL RESCUE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

31	Cash generated from operations			2023		2022
				£		£
	Surplus for the year			122,586		139,010
	Adjustments for:
	Investment income recognised in statement of financial activities			(1,661)		(3,051)
	Fair value gains and losses on investments		(322,256)			-
	Depreciation and impairment of tangible fixed assets			88,035		85,022
	Movements in working capital:
	Decrease/(increase) in stocks			6,663		(3,805)
	Decrease in debtors			54,855		76,788
	(Decrease) in creditors			(1,226)		(17,230)
	Cash (absorbed by)/generated from operations			(53,004)		276,734
32	Analysis of changes in net funds
		At 1 January	**Cash flows **		At 31 December
		2023				2023
		£		£		£
	Cash at bank and in hand	553,478	(175,679)			377,799
	Loans falling due within one year	(26,635)		6,635		(20,000)
	Loans falling due after more than one year	(149,595)		106,262		(43,333)
		377,248		(62,782)		314,466

• 27 -