The trustees present their annual report and financial statements for the year ended 30 June 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 [governing document], the Companies Act 2006 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's objects are to relieve and prevent the suffering and distress amongst cats in need of care and attention and to promote the welfare of cats.
Our vision of how the world would be if we were no longer needed: ‘A world where all cats are happy, healthy and homed.'
Our mission is defined simply as: 'We aim to relieve and prevent suffering amongst cats.'
In collaboration with staff and volunteers across the charity, we defined our values:
Through enthusiasm and collaboration, we demonstrate:
Compassion: We offer kindness and empathy to all cats and humans.
Integrity: We are trustworthy and honest.
Commitment: We are attentive and aim for excellence.
Cat News
In the year to June 2023, the Sheffield Cats Shelter continued to help cats and kittens find new homes and happy lives. In total, 225 cats were adopted (2022 210) . This is despite the challenges two prolonged outbreaks of ringworm presented to our cats, staff and volunteers. In order to manage the infection, staff wore full PPE, throughout some very hot weather. Cats affected by ringworm spent much longer in the shelter than they may otherwise have done. As always, our cat team and volunteers rose to the challenge, coping with an unusually long rehoming waiting list, exacerbated by both the ringworm problems and the effects of the cost of living crisis on pet owners.
Efforts to grow our foster numbers bore fruit, meaning that many cats who entered our shelter could be transferred into a home environment. One such cat, Oscar, was particularly notable: at the age of 20 he was the oldest recorded cat to come to us. Oscar had lived happily with his owner for the entirety of his life, but when his owner passed away, everything changed. A neighbour found Oscar crying and locked out of his former home, so we took him into the shelter in March 2023. Oscar needed a warm, homely environment again so he went to live with our fosterer Emily. A few weeks later Oscar passed away, but this was still a success story: without our help he would have died alone and cold on the streets, instead of which he spent his final days in a loving home and passed away with dignity.
Our shelter witnessed a happy, though challenging, event in May 2023. A stray cat called Tulip was brought to us, and the next day she gave birth to seven kittens in our shelter’s maternity room. A rare event, and thankfully all seven of her kittens, and Tulip herself, survived. In subsequent weeks, our social media posts showed the development of ‘Tulip’s troops’ and eventually all eight cats were adopted into forever homes.
Volunteer News
This year saw our volunteer numbers increase again after two years of lockdowns and Covid-related restrictions. Ongoing recruitment for our shelter and our charity shops was carried out via social media, securing resilient and flexible support throughout the year.
Appointment of Patrons
During this period, we were proud to finalise the appointment of our first modern day patrons, Frankie Seaman and Joann Fletcher. Originally from Sheffield, Frankie appeared on our screens as a Dancing on Ice professional skater and now dedicates her time to cat and kitten fostering and supporting Charities. Joann is a renowned Egyptologist who has made a number of TV and radio appearances and has a special interest in cats, both ancient and modern.
Fundraising
In the year up to June 2023, our supporters raised funds online and offline, securing a return presence at events such as Norfolk Heritage Park's Sheffield Fayre, as well as creating innovative revenue streams. We launched our mobile lottery in this period, in conjunction with Donr. Our first draw was in April 2023 and sign up numbers continue to increase.
Our key online fundraising achievement was the successful 2022 Christmas fundraising campaign. We featured the story of Bourbon and Dodger, two kittens who had been abandoned at the roadside just weeks before. Using a variety of posts and newsletters, and thanks to our amazing supporters, we exceeded our £5000 target, raising £6024.
In September 2022 we held a Travis Place street party to celebrate 125 years of The Sheffield Cats Shelter. Being able to celebrate with our supporters at our shelter was a wonderful experience after being effectively cut off by Covid restrictions for so long.
In May we hosted an innovative fundraising event: our very own music festival 'Feline Fest' and raised over £1000. This mixture of innovative events and online fundraising is one which should continue to bear fruit in years to come.
Media and Publicity
Our social media following continued to rise during this year. The number of Facebook followers rose from 13279 to 14152, and the number of Instagram followers rose from 2212 to 2794.
We also increased our presence on external media, allowing more people to hear our message. In the run up to our September birthday event we appeared on Radio Sheffield twice, and on April 5th 2023 The Star newspaper featured our cat Oscar, mentioned earlier, on its front page and across the entirety of page three.
Conclusion
The year to June 2023 brought its share of challenges to The Sheffield Cats Shelter, but we rose to and overcame each of them. In our year-on-year comparisons, we saw increased figures across the board: adoption numbers were up, social media follower numbers were up, and online and offline fundraising were up, too. Thanks to these impressive statistics made possible by our dedicated employees and volunteers, and with a commitment in place to secure new shelter and shop premises, The Sheffield Cats Shelter is ready to face challenges and opportunities in the years to come.
The Income for the year to 30 June 2023 was £513,914 (compared to £550,440 for the year to 30 June 2022). This figure includes legacies of £129,526 (2022 £205,150). Shop sales increased significantly again this year £234,304 (2022 £199,369) thanks to the quality of donations received and the support of our loyal customers. Hillsborough sales improved significantly and our shops will receive another boost in 2024 when our Broomhill shop opens early in the year.
Expenditure continued to increase throughout this period, due to a combination of inflation and the knock on effects of COVID and the cost of living crisis. Costs have increased across all areas of the charity, necessitating extra funding, while our commitment to move our Shelter to more suitable premises requires ever more strenuous fundraising efforts.
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 to between three and six month’s expenditure. 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.
Unrestricted funds of £500,000 are earmarked for the purchase of new, more appropriately laid out, Shelter premises. We aim to attract further grant funding to fit out the new facility for which we would deem this match funding.
The charity is a company limited by guarantee and is governed by its constitution.
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:
Members of the charity appoint a committee of between three and twelve committee members who control the day to day activities of the charity. When considering co-opted Trustees, the committee has regard to the requirement for any specialist skills needed and wider experience of the charity sector.
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 charity is governed by a committee of trustees appointed by members at the Annual Trustees' Meeting.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
The trustees' report was approved by the Board of Trustees.
The trustees, who are also the directors of The Sheffield Cats Shelter for the purpose of company law, 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).
Company Law 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, including the income and expenditure, of the charitable company 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; 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 adequate 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 Companies Act 2006. 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.
I report to the trustees on my examination of the financial statements of The Sheffield Cats Shelter (the charity) for the year ended 30 June 2023.
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
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 ICAEW, which is one of the listed bodies.
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:
accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act 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; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The Sheffield Cats Shelter is a private company limited by guarantee incorporated in England and Wales. The registered office is 1 Travis Place, Sheffield, S10 2DB.
The financial statements have been prepared in accordance with the charity's memorandum and articles of association, the Companies Act 2006 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)” (as amended for accounting periods commencing from 1 January 2016). 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. 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 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.
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.
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.
Resources expended are recognised in the Statement of Financial Activities on an accruals basis.
Expenditure which is directly attributable to charitable activities has been included in this cost category.
Governance costs are those incurred in the management and operation of the charity, both as a charity and a limited company, such as regulatory compliance costs.
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.
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.
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.
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
Shop Income
Rent, rates and water
Vet and food expenses
Electricity and gas
Cleaning
Bank charges and selling fees
Motor and travelling expenses
Legal and professional fees
Telephone
Staff training
Insurance
Postage, printing and stationery
Repairs and renewals
Miscellaneous expenses
Accountancy
Consultancy
Governance costs includes payments to the examiners of £1,985 (2022 - £1,890) for independent examination fees.
The average monthly number of employees during the year was:
The remuneration of key management personnel is as follows.
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
Land and buildings with a carrying amount of £15,860 were revalued at 30 June 2020 by the trustees. This was based on a valuation that was carried out by ELR, an independent valuer, on 10 February 2020.
On 30 June 2021 the trustees again revalued the property back to the original valuation of £375,000 based on 2 external valuations carried out by 2 independent valuers MJM Real Estate Limited and Staves Estate Agents Limited on 6 July 2021.
Both valuations for 2020 and 2021 conform to International Valuation Standards and were based on recent market transactions on arm's length terms for similar properties.
Deferred income is included in the financial statements as follows:
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.
Restricted funds consist of the following:
Fundraising for the garden renovation that was collected in the year to 30 June 2018.
National lottery grant received in the year 30 June 2022.
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 the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
There were no disclosable related party transactions during the year (2022 - none).