The trustees, who are also directors of the charity, present their report and financial statements for the year ended 28 February 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 Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) 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)".
The charity is controlled by its Articles of Association. It is a registered Scottish charity and incorporated as a company limited by guarantee (as defined by the Companies Act 2006). New trustees are appointed in accordance with the Articles of Association.
The principle aim of the charity is to provide care and protection for stray, unwanted and abandoned dogs and to alleviate cruelty as well as providing veterinary care as appropriate. Dogs will be suitably rehomed as soon as possible and the charity strictly adheres to its agreed policy that no dog will ever be subjected to euthanasia for the want of a suitable home.
As well as rehoming dogs, the Charity also offers advice and support to dog owners as well as promoting responsible dog ownership throughout the community. The charity also provides support for members of the community by caring for their pet dogs in times of temporary distress such as homelessness, domestic abuse and health issues. This usually, but not exclusively, involves referrals from organisations such as Social Services, the Police and Women’s Aid.
The trustees have paid due regard to guidance issued by the Scottish Charity Regulator in deciding what activities the charity should undertake.
1. During the year 2022/2023 209 dogs were admitted to the kennels with 186 dogs being rehomed in the same period. There is an average occupancy of dogs in our care at any one time being 28. With 2023 being the 20th anniversary of the inception of the charity, the 5000th dog to be rehomed was almost reached at the end of this year.
2. The immediate outcome of the staffing review resulted in recruitment of 2 Area Retail Coordinators to support the primary income source from our 6 shops. This resulted in significant improvements in management of donated stock, maximizing return on donated stock and allowing the volunteers more time to focus on sales-related activities.
3. A targeted recruitment campaign for shop volunteers showed dividends with volunteer numbers increasing by 20%, allowing for longer and more consistent shop opening hours.
4. The planned refurbishment of the Charity shops was completed at Annan, Newton Stewart and Dumfries, with plans in place for Dalbeattie and Thornhill. A huge success for the Castle Douglas shop was achieved not only when the potential for closure was averted through a great community response; and in addition, an exciting opportunity was identified for investment and development of our retail profile.
5. The programmed rollout of installing electronic till points with a card payment facility into the shops was completed for Dumfries and Annan shops. This proved to be a success and resulted in improved retail revenue plus improved financial reporting information. Challenges of access to reliable internet have delayed installation in remaining shops.
6. A volunteer handbook for all the Charity volunteers was developed, providing standardised policies, procedures and guidance for information and reference. This was welcomed by the volunteers and staff whose input played a significant part in its creation.
7. Creation of an "Events Calendar" ensured that an active presence at community events and shows was achieved to re-engage with the community, raise the charity profile and re-generate fundraising after the disruption of the previous 2 years. An incredible £2,500 was raised visiting shows over the summer. Plans were also put in place to celebrate our 20th year alongside a revised logo to highlight this milestone.
8. A financial review was carried out to ensure the charity was prepared to meet challenges presented by the post pandemic economic climate. The membership and adoption figures were revised to better align with similar costs in the sector.
9. Progress was made in the improvement of use of IT with the introduction of a share drive facility providing a single access point to documents and information for all staff and Trustees.
COVID Impact
The early part of the accounting period continued to be impacted by the COVID-19 pandemic either due to Government restrictions in the first period of the financial year, initial reticence to enter shops in the early months post-pandemic, and struggles to re-engage our volunteer base in the months after restrictions were lifted resulting in reduced opening hours. Retail has subsequently bounced back and the introduction of the paid regional coordinators has supported efficiencies.
Owing to these specific challenges, we maintained a cautious approach to the finances in the months after restrictions were lifted. Capital improvement work was put back out for designs and concepts as prices had escalated in the building trade.
The charity has maintained a secure financial position thanks to substantial reserves, legacies and the performance of the shops. Total income for the year was £494,373 (£443,228 in 2021 -2022).
At year end, total assets were £1,986,099 including invested funds of £674,875, this compares with total assets of £1,902,181 in 2022.
Reserves policy
The charity’s reserves policy remains unchanged from 2020. However, this is subject to review at any point due to the ongoing affect of the pandemic and any economic impacts.
The current reserves figures remain at:
Contingency £330k (approximately 1 year running costs)
Capital replacement £100k
Project fund £350k
Traditionally, the current account instant access reserves have been maintained at a level of around £125-£150k.
Risk factors
The board systematically review areas of risk to the business.
The standing risk management agenda items at each board meeting ensure any potential impacts are fully discussed and action is taken to mitigate the risk to operations.
Plans for future periods
The trustees routinely monitor progress and achievements on key objectives throughout the year, and hold an annual strategy day to set objectives for the next financial year and beyond. These key objectives fall under four main headings; Canine Welfare, Governance, Business Development and Fundraising.
The key objectives are;
• Fully research and evaluate development options for the kennels site to the point of agreeing a schedule of works.
• Conduct ongoing monitoring and review of staffing resources ensuring all aspects of current business needs are met, and to safeguard for future business needs, with a view to adopting a Business Model approach for supporting development and governance aspects of the Charity.
• Prepare Risk Management Plan ensuring sustainability and ongoing development for all business functions, looking to reduce dependence on Trustee involvement for operational activities.
• Build upon the opportunities for retail development and income generation inspired by the addition of the new Castle Douglas shop into our portfolio, with a view to opening in 2023. Consider expansion of retail outlets to capture the margins of Dumfries & Galloway.
• Broaden and diversify income generation i.e Gift Aid and legacy commitment.
• Be prepared to respond to any challenges presented by increased numbers or profiles of dogs received, i.e. increased staff time or other resources needed to rehabilitate behavioural issues to a level for successful rehoming.
• Continue to develop our profile, appeal and engagement to a broader community, with a focus on enhancing our website and use of social media platforms to capitalise on marketing and fundraising opportunities.
The charity is a company limited by guarantee and is governed by its Memorandum and Articles of Association.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Trustee/director appointments are made in accordance with the provisions of the Companies Act as reflected in its Articles of Association.
New trustees are provided with an induction to the work of the Centre and the responsibilities of charity trustees. They are given the opportunity to participate in training events organised for staff and events organised for trustees by external providers.
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The kennels are under the supervision of a maneger, supported by a team of 12 staff (some part-time). There are two additional staff performing the role of retail coordinators. A large number of volunteers make a significant contribution to the running of the charity.
A Financial Memorandum has been approved by the Board and, amongst other things, sets out rules governing delegation of spending authority and requirements for appointing external contractors.
The trustees' report was approved by the Board of Trustees.
I report on the financial statements of the charity for the year ended 28 February 2023, which are set out on pages 6 to 18.
The charity’s trustees, who are also the directors of Dumfries and Galloway Canine Rescue Centre for the purposes of company law, are responsible for the preparation of the financial statements in accordance with the terms of the Charities and Trustee Investments (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The trustees consider that the audit requirement of Regulation 10(1)(a) to (c) of the 2006 Accounts Regulations does not apply. It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Act and to state whether particular matters have come to my attention.
My examination is carried out in accordance with Regulation 11 of the 2006 Accounts Regulations. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeks explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently I do not express an audit opinion on the view given by the financial statements.
In connection with my examination, no matter has come to my attention:
to keep accounting records in accordance with section 44(1) (a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and
to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations;
to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
designated
General activities
Barn improvement
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
designated
General activities
Barn improvement
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Dumfries and Galloway Canine Rescue Centre is a private company limited by guarantee incorporated in Scotland. The registered office is Dovecotewells, Glencaple, Dumfries, Dumfries & Galloway, DG1 4RH.
The financial statements have been prepared in accordance with the charity's Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) 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)". The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
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.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
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.
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.
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
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:
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.
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.
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).
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
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.
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, 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.
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.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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.
Grants receivable
Memberships and fees
Merchandise income
Other income
Interest receivable
General activities
Barn improvement
General activities
Barn improvement
Premises expenses
Repairs and renewals
Staff training
Staff expenses
Merchandise and fundraising
Veterinary, medicine and food
Hire of equipment
Office costs
Motor expenses
Bank charges
The average monthly number of employees during the year was:
No employees received emoluments in excess of £60,000 (2022: none).
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
Property improvements include leasehold improvements of £573,316 (2021: £609,494). However, there is no provision in the lease to provide compensation at the end of the lease term and therefore while the asset is shown as tangible, its value cannot be realised.
There were no disclosable related party transactions during the year (2022 - none).