TRUSTEES REPORT AND ACCOUNTS 2013 TRUSTEES REPORT AND ACCOUNTS 2013
It is with great pleasure that I introduce the report and accounts of The CONTENTS Donkey Sanctuary in what has been another remarkable year in our journey. DONKEY SANCTUARY FACTS AND STATISTICS 4 Addressing the challenges of the economic climate at the same time as adopting our new strategic plan, it has been a busy 12 months but I am sure you will find the MESSAGE FROM THE CHIEF details and figures in the ensuing pages immensely reassuring. EXECUTIVE, DAVID COOK 6 On behalf of my fellow trustees, I take this opportunity to thank our wonderful staff; TRUSTEES REPORT the CEO and his team have done an outstanding job, once again, and the charity is positioned well to ensure that we continue to make a difference to the lives of VISION, MISSION AND VALUES 8 donkeys and mules and those dependent upon them.....wherever there is need. Of course none of this is possible without the help of our many friends and RESCUE AND REHOMING 10 supporters. So to them all, and to you, thank you. DONKEYS IN THE COMMUNITY 12 Stuart WJ Reid, Chair, Trustees
HUMAN DONKEY INTERACTIONS 14
CONSIDERING THE FUTURE 16
FINANCIAL REVIEW 18
THANK YOU 20
STRUCTURE, GOVERNANCE AND MANAGEMENT 22
STATEMENT OF TRUSTEES RESPONSIBILITIES 26
AUDITOR’S REPORT 27
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES 29
BALANCE SHEETS 30
CONSOLIDATED CASH FLOW STATEMENT 31
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 32
REFERENCE AND ADMINISTRATIVE DETAILS 63
Pages 2&3 www.thedonkeysanctuary.org.uk DONKEY SANCTUARY IN 2013
27 project countries worldwide. 5,800 animals currently 900 donkeys rescued or 52,000 donkey assisted 20 donkeys in our new adopt 6 donkey assisted therapy The Donkey Sanctuary either in our care at sanctuaries and relinquished into our care. therapy sessions held for a donkey scheme. centres in the UK and a further worked directly or supported foster homes in the UK, Ireland children with additional needs. 3 therapy projects in Spain, Italy projects to help donkeys and and the rest of Europe. and Romania. mules in 27 countries worldwide; as well as providing sanctuary across Europe and operating major projects in Egypt, Ethiopia, India, Kenya and Mexico.
SINCE COMMENCEMENT OF 1 MILLION donkeys Over 1,000 volunteers Over 200,000 1,500 donkeys in foster 25 overseas mobile teams THE CHARITY IN 1969 within reach of our international caring for donkeys, fundraising visitors a year to the charity’s homes in the UK, Ireland and bringing veterinary care and projects. and helping with donkey sanctuaries and assisted therapy the rest of Europe. community engagement 16,500 donkeys and assisted therapy. centres throughout the UK. programmes to where donkeys mules in Europe provided with need help most, plus 5 sanctuary for life. veterinary clinics.
Pages 4&5 www.thedonkeysanctuary.org.uk MESSAGE FROM THE CHIEF EXECUTIVE,
There are a number of reasons why 2013 was 1. To increase the number of donkeys and mules such a great year for The Donkey Sanctuary that can benefit from our care and welfare and it sets the scene for us to aim for even activities around the world from one million to greater achievements in the years to come. two million. First and foremost I want to give a really big 2. To expand the number of countries we work thank you to all of our supporters and sponsors in, either directly through our own projects for their superb support in 2013 which resulted or in collaboration with other like-minded in us achieving our highest ever income during organisations, from 27 to 40. a single year. This despite only beginning to 3. To double the number of donkeys and mules see positive shoots of recovery in the economy that are rehomed with foster owners around towards the end of the year, following economic Europe from 1,500 to 3,000, thereby creating hardship that affected so much of the world space and cost saving that will enable us to care over the last six years. for even more donkeys and mules in need. 4. To expand our donkey assisted therapy activities Our very positive income result enabled us to from nine operations to thirty one, through the use continue to expand the services we provide of very cost effective mobile units and collaboration in the care and welfare of donkeys and mules with other organisations, not only in the United throughout the world and its ongoing benefit to Kingdom but to other parts of the world. humanity. In 2013 we worked directly or indirectly in 27 countries around the world improving care In memory of our founder, in 2013 we launched the and welfare for donkeys and mules. Our own Dr Elisabeth Svendsen Lifetime Achievement Award teams carried out 450,000 veterinary treatments which will be awarded to a few very special people and we are now working in areas that a million who have never been employed by The Donkey donkeys and mules could benefit from our Sanctuary but who have devoted a large part of activities. In our donkey assisted therapy centres their lives to working with us to improve the care we held over 50,000 assisted therapy sessions and welfare of donkeys and mules throughout the for children with additional needs. Unfortunately world. The first two recipients of this award were there were still 900 animals, mainly from the Dr Aline de Aluja, from the University of Mexico’s United Kingdom and Ireland relinquished into our veterinary faculty and Professor Feseha Gebreab care, many as a result of the accumulative effect formerly Dean of the veterinary faculty at Addis following the long poor economic climate. Ababa University in Ethiopia. The continued strength of your support has also In summary our income for 2013 was £30.7million, given us the confidence that we could revise and up £3.6million (13%) on 2012 on a like for like basis. retarget our aims and objectives for the coming Our expenditure was £28.5million up £2.2million five years and to even look further out to 10 and (8%) on 2012, still only spending 15 pence in the even 20 years hence. We have also refreshed pound on fundraising and governance. The surplus our Vision statement which is encapsulated in from this year returns us for the first time for some just eighteen words; A world where donkeys years to our desired safety position of 12 months and mules live free from suffering, and their expenditure coverage in free cash reserves. , and contribution to humanity is fully valued None of our activities during the last forty five our Mission statement which simply states; To years, or our expansive aspirations outlined in transform the quality of life for donkeys, our new strategic plan are possible without your mules and people worldwide through greater continued support and generosity for which all of us understanding, collaboration and support, and here at The Donkey Sanctuary are truly grateful. by promoting lasting, mutually life–enhancing relationships. Our new strategic plan entitled Our Journey Continues….can be found in its entirety on our website and in some further detail in this Annual Report, but I would just like to give you some idea of the scope of this new plan by highlighting just four of the items, all of which have a target date of 2018:
Pages 6&7 www.thedonkeysanctuary.org.uk VISION, MISSION AND VALUES
COMPASSION OUR VISION The Donkey Sanctuary is above all else A WORLD WHERE compassionate. We never turn away from a donkey in need. Donkeys and the people who rely DONKEYS AND MULES on them for their livelihoods or to help them cope LIVE FREE FROM with physical, mental and emotional challenges, lie at the heart of everything we do. We act as a SUFFERING AND THEIR global driving force for caring, both for suffering CONTRIBUTION TO donkeys and mules, and for all those people whose lives they touch – generating understanding, HUMANITY IS FULLY compassion and support all over the world. VALUED. COLLABORATION OUR MISSION The Donkey Sanctuary is collaborative in all its To transform the quality of life for donkeys, mules and activities, working through a worldwide network of people worldwide through greater understanding, partner organisations, communities and individuals. collaboration and support, and by promoting We work inclusively with people frequently lasting, mutually life-enhancing relationships. marginalised within their own countries and communities, whether due to poverty, ignorance, OUR VALUES race, gender or disabilities. We treat every Compassion, collaboration and creativity are The interaction as a two-way opportunity to learn and Donkey Sanctuary values. They are the key to our to teach. We know that it is only together that journey as they represent what we stand for and we can help donkey owners and carers become what we measure ourselves against. donkey welfare ambassadors wherever they live and work.
CREATIVITY The Donkey Sanctuary’s goals are ambitious, but its resources are finite, which means that we must exercise creativity to meet the ambitious goals we set ourselves. Whether this be in adapting locally available materials for donkey-friendly harness across projects that span four different continents, in developing donkey assisted therapy activities tailored to the unique challenges of a child with additional needs, or reaching donkey owning communities in the midst of man-made or natural disasters - creative thinking underpins everything we do.
Pages 8&9 www.thedonkeysanctuary.org.uk RESCUE AND REHOMING
far from our minds, and in 2013 we held three NEVER TURNING AWAY dedicated Junior Vet Days, giving forty 11-15 FROM A DONKEY OR year olds the opportunity to learn about donkey anatomy, veterinary treatments and surgery. MULE IN NEED, AND We don’t know who enjoyed the day more – PROVIDING THEM WITH the donkeys or the children as the aspiring vets monitored pulse and respiratory rates, examined LIFELONG CARE teeth and applied foot bandages. In 2013, we welcomed a further 900 donkeys and mules into our sanctuaries in the UK, Ireland and mainland Europe; bringing the total number of animals in our care to an incredible 5,800. The need for our work was particularly high in Ireland where the ongoing recession has resulted in large numbers of abandoned animals in need of urgent care, made more urgent still by the terrible winter weather. Many animals arrived needing emergency veterinary treatment and over the year our teams had to work hard to create space on our farms in Liscarroll, Cork and in the holding bases in Northern Ireland to house the new arrivals as a matter of urgency. Even with extra accommodation in Ireland we still had to transport over 300 donkeys to our UK farms to relieve the pressure on space. As a result, our UK farms are now also close to full capacity, and we are working hard to maximise all available space. Thankfully the charity’s fostering scheme continued to provide loving and fulfilling homes, and in 2013 we were delighted to find space for over 200 donkeys via our foster scheme. Fostering is a vital element of our ability to reach more donkeys and in 2013 we reviewed our Fostering Strategy to ensure that we can attract Sadly, against the backdrop of ever increasing more homes onto the scheme without reducing donkey numbers in our care, the involvement our welfare standards. The new policy will attract a of our welfare networks in urgent rescues has wider cross-section of fosterers, including schools continued unabated. and other institutions where fostering donkeys Several urgent cruelty cases in Italy resulted in will provide a real benefit both to the animals and us taking in 28 donkeys and mules, and there were those who care for them. a number of welfare cases in Spain. Other welfare As well as routine and emergency veterinary campaigns included our efforts to improve the care for our resident herds, in 2013 our conditions for animals working as tourist taxis in veterinary specialists expanded our education Santorini, Greece and we funded 10 outreach trips programme for owners and professionals. on the mainland and Greek islands. Meanwhile In addition to our lectures and presentations 2013 was our 10th anniversary of working to at UK veterinary universities and farriery improve the welfare of donkeys and mules all over schools, we gave talks at veterinary practice Spain and we had particular cause to celebrate client evenings and regional meetings, wrote this in Mijas when the town council agreed to papers for publications and provided individual use Codes of Practice provided by us for working training programmes to visiting vets, vet students donkeys and mules. The Spanish team will now be and farriers from all over the world. The next training all of the donkey owners, ministry vets and generation of animal care specialists are never the local police in Mijas in donkey care.
Pages 10&11 www.thedonkeysanctuary.org.uk DONKEYS IN THE COMMUNITY
Elsewhere the role that donkeys play in REDUCING THE recovery from man-made and natural disaster SUFFERING OF DOMESTIC has long been underestimated. In July 2013 the state of Uttarakhand in India and adjoining areas AND WORKING DONKEYS were hit by torrential rain which led to landslides DUE TO NEGLECT, ILL- and flash floods causing widespread destruction with loss of human and animal life. The disaster TREATMENT, ILLNESS, resulted in major damage to infrastructure and IGNORANCE AND INJURY property and an estimated 500 villages were completely cut off. The Donkey Sanctuary, India In 2013 we operated directly or through responded to the disaster by sending two teams partnership projects in 27 countries; our to carry out relief operations for injured and international teams worked tirelessly to stranded equines. The relief work was carried out alleviate the suffering of sick and injured in co-ordination with partnership organisations, a donkeys through mobile clinics, community local community group, government agencies, and engagement and partnership work with the National Disaster Management Agency in an donkey owning communities. operation that involved rescuing 922 equines of With poorer economies continuing to have a which 730 were mules and the rest were ponies significant impact on developing countries, our and horses. During the same rescue operation we engagement was more vital than ever to donkey also treated donkeys, in collaboration with partner owning communities around the world, and we organisations, to avoid duplication of effort and worked widely with them to reach out to over one maximise the help provided to both the animals million donkeys. and vulnerable communities they live in. Our Founder, Dr Elisabeth Svendsen, made her first trip to Kenya in 1985 and was so affected by the number of donkeys in need she found there that she set about developing a project to provide regular healthcare and education. The first clinics opened in 1987 and the project has continued to grow such that in 2013 The Donkey Sanctuary, Kenya reached a third of the country’s donkey population, helping over 200,000 donkeys and mules. As in all our projects, working with others is key; collaborating with donkey owners like Daniel who lives in Mlolongo, near Nairobi. Daniel and his family rely on their donkeys for vital income but also treat them as members of their family. With our support in 2013 Daniel became Chairman of the local Donkey Owners’ Group which meets weekly with the aim of improving the welfare of their donkeys through better harnessing and working conditions. By the end of 2013 the group boasted 26 members, all sowing seeds of compassion, care and welfare for donkeys, and the group continues to grow.
Pages 12&13 www.thedonkeysanctuary.org.uk HUMAN DONKEY INTERACTIONS
As well as their direct therapeutic activities, IMPROVING THE LIVES the centres also brought comfort and happy OF DONKEYS AND memories to the elderly through outreach visits to retirement homes all over the UK. The therapy PEOPLE THROUGH work brings joy both to humans and to the POSITIVE HUMAN donkeys who deliver it – bright and gentle animals that flourish from the attention and mental DONKEY INTERACTIONS stimulation they receive. We were particularly proud in 2013 when In 2013 we provided an incredible 52,000 Shocks, a donkey assisted therapy donkey at our transformative donkey assisted therapy sessions Birmingham Centre, was named Rescue Animal to children with additional needs through our six of the Year at the Daily Mirror 2013 Animal Hero centres in the UK. Awards. Shocks was rescued by The Donkey Donkey assisted therapy helps improve core Sanctuary in Ireland in 2010 having sustained strength and stability, confidence and social horrific injuries to his neck. After being treated and engagement; not only in children with additional cared for at our sanctuary in Devon, he overcame needs but also to adults of all ages with physical his injuries and fear of humans and started giving and mental challenges to overcome. One such donkey assisted therapy to children with additional adult is Sean who suffered from developmental needs. Two of his biggest fans are Hope, who dyspraxia from an early age. He attended our has a small hole in her heart, and her twin sister Birmingham donkey assisted therapy centre as a Amber who has a tracheostomy and mild cerebral child to help develop his core stability and hand-eye palsy. Both girls now benefit from regular therapy co-ordination, and to improve his self-esteem and sessions with Shocks, and he benefits from their confidence. We were delighted in 2013 when, after adoration too. completing two years of dedicated voluntary work which helped towards his Level 3 course in animal Amber could hardly sit up and we were management, Sean became a member of staff. told she would struggle to walk. We didn’t think she’d be able to sit on a donkey. But her core strength has grown enormously and she has learnt to support herself independently now. Amber’s Mum, Tracy.
Pages 14&15 www.thedonkeysanctuary.org.uk CONSIDERING THE FUTURE
During the last 45 years, The Donkey Sanctuary influence government and other bodies to has made a profound difference to the lives of improve donkey welfare through legislation and donkeys and people all over the world. More other means. than 16,500 donkeys and mules have been • Working to build relationships with given a sanctuary for life in the UK, Ireland and humanitarian organisations to reach more Europe, millions of donkeys supporting some donkeys and mules in the poorest and most of the world’s poorest communities have been disaster affected parts of the world. helped through free veterinary and education interventions, and donkey assisted therapy has 3 HUMAN DONKEY INTERACTIONS: enhanced the lives of thousands of children • Increasing the number of donkey assisted and adults with additional needs. Despite our therapy projects for children and adults with successes however, there is still considerable additional needs from nine to 31 by developing work to do. mobile units and through partnerships. There are an estimated fifty million donkeys and • Delivering detailed research into the beneficial mules in the world, many of which are struggling effects of donkey assisted therapy on physical, as much as ever due to overwork, neglect, mental, and social outcomes. abandonment, abuse or inhumane conditions. In • Developing a network of fostered donkeys in order to meet that challenge, we have launched schools and other institutions to further extend an ambitious new Strategic Plan outlining far- opportunities for therapeutic work across the UK. reaching goals for our UK and worldwide projects over the next five years and beyond. 4 DEVELOPING THE ORGANISATION: As a global leader in donkey welfare we will • Increasing our active volunteer workforce from continue to grow and support a worldwide 600 to 1,000. network demonstrating excellence across the • Increase the number of volunteer fundraisers spectrum of places that donkeys and mules live from 1,000 to 5,000. and work, and encompassing a wide range of • Provide learning opportunities and high quality geographical, demographic, agro-ecological and interactions for young people with donkeys cultural contexts. and mules through the launch of a nationwide schools engagement programme. 1 RESCUE AND REHOMING: • Increase the number of visitors to our • Identifying, tracking and monitoring donkey sanctuaries and centres by 25% to over welfare issues and hotspots and developing 250,000 a year. solutions to handle emerging issues. • Optimising conservation of wildlife and habitats • Doubling the number of donkeys re-homed in our care. through our Foster Scheme from 1,500 to 3,000. A complete copy of our “Strategic Plan: • Developing comprehensive Codes of Practice Our Journey Continues...” is available to download for donkey milk and meat production and live at animal transport. www.thedonkeysanctuary.org.uk/our- • Introducing a programme to enrich our resident journey-continues donkeys’ living environment, investigating opportunities for useful and humane work.
2 DONKEYS IN THE COMMUNITY: • Doubling the number of donkeys within reach of our care and welfare from one million to two million. • Increasing the number of countries that we operate in directly or through partnership from 27 to 40. • Acting as the voice of the donkey; seeking to
Pages 16&17 www.thedonkeysanctuary.org.uk FINANCIAL REVIEW 2013
FINANCIAL REVIEW and in Italy we dealt with a significant rescue case, the biggest ever rescue of its kind involving the rescue of The financial performance of The Donkey Sanctuary and its subsidiary undertakings during the year was 28 donkeys, mules and hinnies that were relinquished to our Italian rescue centre, Il Rifugio degli Asinelli. extremely encouraging and accorded with the Trustees’ expectations. The position at the end of the 12 Months to 12 Months to year is regarded as very positive and provides a robust base from which we can extend our impact by HOW YOUR MONEY WAS SPENT 31.12.2013 31.12.2012 working towards the objectives of our new five year Strategic Plan. 2013 £’m £’m INCOME GENERATION Donkey care 6.2 5.7 We have had a very successful year generating growth in donation and legacy income and during Donkey welfare support 1.9 1.7 2013, thanks to the generosity of our supporters, our income on a like for like basis grew by over 13% Training, education and awareness 0.6 0.6 compared with the previous year, (after removing the effect of the exceptional one off donation of Veterinary services and research 2.9 2.8 £5.1m representing the fair value of net assets donated by The Elisabeth Svendsen Trust for Children Working worldwide 9.2 8.0 and Donkeys following the merger on 1 January 2012). Donkey Assisted Therapy* 2.7 2.9 (* 2012 Total adjusted to exclude transfer of tangible fixed Fundraising trading cost of goods sold 0.8 0.9 WHERE OUR MONEY CAME FROM 12 Months to 12 Months to assets from The Elisabeth Svendsen Trust for Children and Cost of generating voluntary income 3.8 3.4 31.12.2013 31.12.2012* Donkeys and 2013 reflects the full year effect of the benefits Governance costs 0.4 0.3 2013 £’m £’m realised from the merger with The Donkey Sanctuary) Total 28.5 26.3 Legacies 20.0 18.0 RESERVES Donations** 7.6 6.7 The Trustees operate a reserves policy which they consider appropriate to ensure, barring unforeseen Investment income 0.6 0.5 circumstances, the continued ability of The Donkey Sanctuary to meet its objectives. The Trustees are Trading company income 1.1 1.1 increasingly aware of the potential volatility of income levels and the significant proportion of our total Other 1.4 0.8 income from legacies. In addition, due to the fact that we make considerable investment in projects Total 30.7 27.1 outside of the UK, the Trustees and Executive Team are mindful of the expenditure we incur in local currencies funded by monies received in sterling. We aim to maintain, as far as it is possible, a minimum ** 2012 total adjusted to exclude the £5.1m of free reserves equivalent to at least one year’s expenditure coverage. donation of net assets from The Elisabeth Svendsen Trust for Children and Donkeys 2013 12 Months to 12 Months to 31.12.2013 31.12.2012* In 2013 our donation income grew by £0.9m (13%) on a like for like basis reflecting our ongoing £’m £’m efforts to highlight donkey care and welfare issues and the benefits of donkey assisted therapy to our Restricted Restrictedfunds funds 2.8 2.8 2.6 2.6 supporters all over the world. During the year we have had particular success in launching our brand Fixed AssetsDonations** 22.3 21.7 22.3 21.7 new Adoption Scheme which has helped to increase our donation income and hence contribute towards Residual LegaciesInvestment income 10.9 11.0 10.9 11.0 the expansion of our charitable activities. Free cash reservesTrading company income 26.8 23.0 26.8 23.0 Legacy income continues to be a very important source of income for us and we are extremely Total 62.6 58.3 grateful to all who have remembered us in their Will. In 2013 legacy income grew to £20m (2012: Total 62.6 58.3 £18m), an increase of 11% and reflects legacy income generated from all group entities including The As at 31 December 2013, the total value of unrestricted accumulated funds was £60.0m of which £20.6m Elisabeth Svendsen Trust for Children and Donkeys and The International Donkey Protection Trust. related to unrestricted income funds that could only be realised by disposing of tangible and intangible fixed Income generated from trading subsidiaries remained consistent with 2012 at £1.1m. As visitor assets held for charity use. A further £1.3m of funds are allocated for committed capital projects and £0.4m numbers recovered from the lows of 2012 there was an increase in revenue generated from our on site to intangible assets. The resulting general fund of £37.7m includes £10.9m in respect of legacies of which restaurant and catering facilities which was offset by slightly lower than expected revenue from our mail we have been advised but for which no income has yet been received. £37.7m or £26.8m (after deduction order trading activities. of residual legacy income yet to be received) represents 17 and 12 months coverage respectively of the 2014 budgeted expenditure levels. The reserve reflects additional funding requirements of our expansion EXPENDITURE plans over the coming five year period and forms part of our Strategic Plan. Total expenditure for the year including investment in capital projects grew to £28.5m (2012: £26.3m). Operational expenditure on our charitable activities increased by 7% to £22.4m (2012: £20.9m) with the key areas of growth in Donkey Welfare Support, Veterinary Services and Research and in our overseas activities, Working Worldwide. In Ireland we have been coping with increasing levels of relinquishments throughout the year and, whilst we continue to promote our Foster Scheme and find new homes for many of the donkeys and mules that come into our care, we have been accommodating the new arrivals across our farms and holding bases in the UK and in Ireland with the related impact on our running costs. In the wider European and International context, during the year our costs were affected by the expansion of activity within our projects in Ethiopia. We reinstated activity in Egypt following the political unrest in 2012
Pages 18&19 www.thedonkeysanctuary.org.uk THANK YOU
In 2013 we welcomed 900 donkeys and mules in Mrs J Hukins Mr V L Woodford The Kathleen Patricia Underwood 2007 need into our care and extended our invaluable Mr and Mrs B Jacques Mrs J Young Discretionary Trust work around the world. We would not be able Mrs S Jamieson The Kenneth Hargreaves Charitable Trust to continue this work without the dedication of Mrs E Jefferson Thank you to the Charitable Trusts and The Latimer Charitable Trust supporters, donkey fosterers, staff and volunteers. Mr H Jones Foundations who have supported our work The Leigh Trust Mrs A J Kendall in 2013: The Lord Austin Trust THANK YOU TO OUR ROSETTE GROUP Mrs Kernighan and Family The Marenjan Trust MEMBERS IN 2013: Ms S Kettle A S Butler Charitable Trust The Michael Testler Charitable Foundation The Rosette Group is a group of supporters who Mrs M E Kimberley-Scott Andrew Browning Charitable Trust The Moneybury Charitable Trust wish to be more involved in the work of The Mr J H Lanceley Ann Jane Green Trust The Mullion Trust Donkey Sanctuary and make a vital contribution Miss N Lavenu Betty and Stanley Abbett Charitable Trust The Myristica Trust to all aspects of our work both in this country Miss J Manns D E Hollingworth Charitable Trust The Pennycress Trust and overseas. We would like to thank our Rosette Mrs A Masson Douglas Glanfield Memorial Trust The Professor D G Montefiore Charitable Trust Group members for their generous support in 2013. Mrs K McGregor George Teasdale Birks Trust The Rimmer Memorial Charitable Trust Mr S Miller H D and B Crompton Charitable Trust The Serth and Gates Charity Princess C Aga Khan Mrs M Mills Jane Hodge Foundation The Sir James Miller Edinburgh Trust Miss S M Ainsworth Mrs L Milne Johnson Wax Ltd Charitable Trust The Smythe Kitson Trust Miss R Antrobus Miss K M Morant Limoges Charitable Trust The Steel Charitable Trust Mrs G Archer Mr S Morris Miss D H Rylance Charitable Trust The Stephen Cockburn Charitable Trust Mrs I M Armitage Ms E Murray Miss Hanson’s Charitable Trust The Sylvia Aitken Charitable Trust Mr D Barrett Mrs J M Nelis Miss Joyce Cater Charitable Trust The Sylvia and Colin Shepherd Charitable Trust Mr R F Bean Mrs J Newman Miss M L Watts Charitable Trust The Tyldesley Charitable Settlement Mrs J Bean Mrs J P Ongley Mrs C M Livesley 1992 Charitable Trust The Valerie White Memorial Trust Miss L Beesley Mrs P Oram Mrs C M Paxton Deceased Charitable Trust The Whaites Charitable Fund Miss M Beetham Mr R R Outten Mrs Jean S Innes Charitable Trust The Woodcote Trust Ms L Bilek Miss D Parker Mrs Norah Helen Spurway’s Charitable Trust The Yvonne Flux Charitable Trust Mrs J Bordeleau Mrs M Pirson-Dossogne Mrs S H Adlam Will Trust Tollemache (Buckminster) Charitable Trust Mrs N Brack Miss S Pollard P J Davies Charitable Trust Verna Group Charity Society Mrs W M Brock Mr S Pratt So Hum Foundation Wild Rose Trust Mrs E M Burns Miss S J Price The 29th May 1961 Charitable Trust Mr B Carpenter Mrs L Roobottom The Anna Rosa Forster Charitable Trust Mr B W Clark Mr and Mrs C Rowan The Annandale Charitable Trust Mr G Cook Mrs S Pearman and Mr J Russell The Audrey Emma Lamb Charitable Trust Mrs P Cooper Mrs H Schneider The Barbara Welby Trust Mr and Mrs W H Crowley Mr J F Scott The Betty Kensit Fund Mrs I Curson Mrs C Seabrook The Bramhope Trust Mrs J M De Raaf Mrs R Sitkowski The Calypso Browning Trust Miss R Denby Miss Muriel Smith The Catherine Cookson Charitable Trust Mr S Edwards Mrs S E Smith The Charles Brotherton Trust Mrs J Foldys Mrs R Smith-Levett The Constance Travis Charitable Trust Mr H Fox Mr P Spivey The Diana Edgson Wright Charitable Trust Mrs V Foy Mr A Staples The Dumbreck Charity Miss P and Mr P French Mrs B Sykes The Elizabeth C F McGregor-Dziniak Charitable Mr R Fuller Mr N Sykes Trust for Animals Mrs W M Furlong Miss S Thacker The Enfield Charitable Trust Mr C and Mrs L Green Mrs P Thomas The Finderman Charitable Trust Mr G Guy Mr M Thorne The Gerrard and Audrey Couch Charitable Trust Dr. E S Harri-Augstein Mrs S Tomlin The H Henderson Family Charitable Trust Mrs M F Hawkins Mrs C Verrin The Harry Bacon Foundation Miss R Hayward Ms A Von Bushe The HDH Wills 1965 Charitable Trust Mr O Herbert Mr P S and Mrs M G Widdicombe The Joan Turner Foundation Mrs J E Holland Mrs J B Williams The John and Tessa Fearnley Charitable Trust
Pages 20&21 www.thedonkeysanctuary.org.uk STRUCTURE, GOVERNANCE AND
consists of seven Trustees (who are Directors for Any approval required for an item of expenditure, 3 HUMAN DONKEY INTERACTIONS: THE FOLLOWING Companies Act purposes). The Trustees all have an contractual term or commitment that is outside Aim: To improve the lives of both donkeys and PAGES DESCRIBE THE interest in the care and welfare of animals but also the scope of this schedule must be put before the people through positive human donkey interactions. bring a mix of skills and knowledge necessary for a Board of Trustees for their approval. CHARITY’S STRUCTURE, charity of this size. 4 DEVELOPING THE ORGANISATION: HOW IT IS GOVERNED, Trustees are appointed for a term of three OBJECTIVES AND ACTIVITIES Aim: All staff and partners embody our core HR years and can seek re-election. When a The charitable objects of The Donkey Sanctuary are: values of professional competence, excellent ITS APPROACH TO Trustee vacancy occurs, either as a result of • For the benefit of the public, to relieve the communication, team work, effective use of INTERNAL CONTROLS the departure of an existing member or it is felt suffering of donkeys, mules and other such resources, and personal effectiveness, so acting as necessary to strengthen or enlarge the Board, animals in need of care and attention anywhere valuable ambassadors for The Donkey Sanctuary. AND RISK MANAGEMENT new members are sought that will provide the in the world and to provide and maintain rescue TOGETHER WITH ITS sphere of experience necessary to replace that homes or other facilities for the reception, care, CONNECTED CHARITIES of the departing member or where it is felt the treatment and security of such animals. The Elisabeth Svendsen Trust for Children and POLICIES IN RESPECT charity will benefit from additional expertise. • To promote humane behaviour towards such Donkeys. Charity Number 801070. OF GRANT MAKING AND The induction process for any newly appointed animals by providing them with appropriate Charity objects: To bring together children and Trustee comprises an initial meeting with the care, protection, treatment and security and adults with additional needs with donkeys. INVESTMENTS AND HOW Chief Executive Officer together with a series of to educate the public in the welfare of and the The International Donkey Protection Trust IT MEETS THE PUBLIC reviews with the appropriate Executive and Senior prevention of cruelty and suffering amongst Charity Number 271410. Management Team members to supplement such animals. Charity objects: To help donkeys and mules BENEFIT REQUIREMENTS information provided in their induction pack so • To benefit those persons whose lives are anywhere in the world and to ease their suffering by SET OUT IN THE as to impart knowledge of the operational and enhanced by working donkeys and mules by veterinary care and the education of their owners. administrative aspects of the charity. Details of improving the health and welfare of such animals. On 21 December 2010, the Charity Commission CHARITIES ACT 2011. Trustees’ responsibilities are made available to new • To bring enjoyment and pleasure to enrich the granted a Scheme under which The International Trustees from Charity Commission publications. lives of children, young people and adults who Donkey Protection Trust (IDPT) would be STRUCTURE, GOVERNANCE AND Refresher course updates are made available have additional needs, special educational needs, incorporated within the charity. Under this uniting MANAGEMENT to Trustees in order to ensure that they remain disabilities or illnesses in order to enhance their direction, IDPT shall be treated as forming part of The Donkey Sanctuary was founded in 1969 by aware of charity and governance developments. education and make their lives better through The Donkey Sanctuary for the purposes of Part Dr Elisabeth Svendsen MBE, became a registered The Trustees meet four times a year together appropriate provision of facilities for riding, 4 (registration) and Part 8 (accounting) of the charity in 1973 and now operates under the with the Executive Team members at which handling or coming into contact with such animals. Charities Act 2011. governance of a sole corporate trustee, The strategic matters are discussed and considered. During the year the charity completed its On 2 December 2011 the Directors of Donkey Sanctuary Trustee Limited. In 2013 Each Trustee meeting is planned to last a full day “Strategic Plan: Our Journey Continues...” The Donkey Sanctuary Trustee Limited (“The the charity operated in 27 project countries with at least one meeting each year, wherever incorporating our new vision, mission and values Company”) and the Incorporated Trustees of The around the world through a combination of possible, being held at one of the sanctuary as well as setting our strategic aims and objectives Elisabeth Svendsen Trust for Children and Donkeys international branches, subsidiary entities, holding projects away from the headquarters in Sidmouth, for the next five years including an outlook for (EST) agreed to proceed with the merging of EST’s bases and collaborations with other like-minded Devon. This is so that the Directors gain a better the next ten to twenty years incorporating the activities into those of The Donkey Sanctuary organisations. We carry out a range of fundraising, understanding of the differing types of work newly merged donkey assisted therapy activities with the intention that The Company would act as donkey care and welfare and donkey assisted undertaken by the charity. following the merger of The Elisabeth Svendsen Trustee of both The Donkey Sanctuary and EST. therapy activities united under one global Donkey A Committee structure also operates to enable Trust for Children and Donkeys into The Donkey On 21 December 2011 the Charity Commission Sanctuary strategy. Trustees and Executive Team members to provide Sanctuary on 1 January 2012. granted a Scheme under which EST would be As a UK registered charity The Donkey a greater depth of direction and governance on Our goal is to bring care to two million donkeys incorporated within The Donkey Sanctuary and Sanctuary incorporates overseas branches specific parts of the charity. Each Trustee will sit on in 40 countries by 2018. Our Strategic Plan agreed to the new objects for the merged charity. in Ethiopia and Mexico as well as operating a at least one of the Committees, although all can focuses on four areas: The effective date of the Scheme was 1 January network of 6 UK donkey assisted therapy centres. attend all meetings if they so wish. The Executive 2012 and under this uniting direction, EST is The Donkey Sanctuary’s charitable subsidiary Team members attend the meeting that is most treated as forming part of The Donkey Sanctuary undertakings operate in Ireland, Spain, Italy, 1 RESCUE AND REHOMING: appropriate to their role or specialism. The Chief Never to turn away from donkeys and mules for the purposes of Part 4 (registration) and Part 8 Cyprus and the Netherlands whilst the charity’s Aim: Executive Officer attends all Committee meetings. in need and provide lifelong care for them in the (accounting) of the Charities Act 2011. UK trading subsidiaries Donkey World Limited and To enable the Executive Team to operate UK and Ireland. The Hayloft (Donkey Sanctuary) Limited provide effectively the Trustees have put in place a additional income from the sale of goods and the SUBSIDIARY UNDERTAKINGS schedule of devolved/delegated responsibility The Donkey Sanctuary has 10 subsidiary operation of catering facilities to visitors to our 2 DONKEYS IN THE COMMUNITY: which clearly sets out what the Chief Executive To reduce the suffering of domestic and undertakings and full details in respect of the main sanctuary in Sidmouth. Aim: Officer and the Executive Team are authorised to working donkeys due to neglect, ill-treatment, subsidiaries’ activities and performance can be The charity has a sole corporate Trustee, The act upon without recourse back to the Trustees. illness, ignorance and injury. found in Note 25 of the accounts. Donkey Sanctuary Trustee Limited and the Board
Pages 22&23 www.thedonkeysanctuary.org.uk INTERNAL CONTROLS AND RISK • Charities concerned with the care and re- INVESTMENT POLICY and not managed by Investec continues to be MANAGEMENT homing of animals that are abandoned, The Trustees have established an investment invested in interest bearing deposits and Treasury The Trustees have responsibility for the oversight mistreated or lost. policy for the charity that covers: accounts with selected banks and building societies. of risk management within The Donkey Sanctuary. • Feral animal control (e.g. neutering). • an investment portfolio in equities, bonds and In line with recommendations of the Statement The relief of those in need, by reason of youth, other listed investments, long-term in nature APPROVAL of Recommended Practice for Accounting age, ill-health, disability, financial hardship or and administered by investment managers on a This report was approved by the Trustees on and Reporting by Charities, the Trustees have other disadvantage is also an admissible charitable discretionary basis and; approved a risk management process to assess purpose within the Charities Act and is taken to • cash held in term deposit accounts administered business risk and implement risk management include our donkey assisted therapy activities through a combination of fund managers and and signed on its behalf by: strategies. A risk register forms the basis of the and our work in many parts of the world where the Executive Team. ongoing risk management process. donkeys and mules transport goods and people. During the year the Trustees undertook a The Trustees have reviewed the major risks Improving the care and welfare of the animals review of the charity’s listed investment fund and the risk management processes within the directly impacts on the lives of those that depend managers, the outcome of the review resulting in charity and concluded that operational and on them. the transfer of fund management from Newton financial controls, together with the internal audit The Trustees are satisfied that the aims and Investment Management Limited to Investec programme, are sufficient to mitigate such risks. objectives of the charity and the sections that Wealth & Investment Limited (Investec). The Robert Crawford, Trustee Senior Managers and the Executive Team follow demonstrate how The Donkey Sanctuary charity’s listed investments are managed through The Donkey Sanctuary Trustee Limited review risk on a regular basis, assessing the impact met its charitable purposes in 2013 and its principal a discretionary fund management agreement and likelihood of individual risk, the actions that achievements under its respective areas of charitable with Investec. The agreement confirms the stated have been taken to mitigate or control risks, the activity meet the public benefit requirements. investment objective to preserve and grow the effectiveness of our risk management controls and invested sum through a balanced investment whether there are new risks for the charity that GRANT MAKING portfolio of income and capital growth whilst need to be considered. The Donkey Sanctuary continues to provide adopting a medium risk approach. Actions taken during the course of the year grant funding to overseas organisations whose As part of the review of fund managers Stuart Reid, Trustee have served to either increase the strength objectives are similar to those of the charity. the Trustees included a review of the Ethical The Donkey Sanctuary Trustee Limited of our risk management, or to reduce the Long-standing relationships exist with four Investment Policy. The Trustees have due regard probability of the risk occurring and following overseas organisations, two of which (The for the underlying principle that their power of the implementation of our enhanced risk register Donkey Sanctuary, India and The Society for investment has to be used to further the purposes we have begun the process of embedding the Protection and Welfare of Donkeys and Mules of the charity, and that those purposes will management of risk throughout the organisation. in Egypt) were established by the charity for the normally be best served by seeking the maximum It is recognised that systems can only provide furtherance of its objects in India and Egypt and return consistent with commercial prudence. The reasonable, and not absolute, assurance that major two (The Faculty of Veterinary Medicine at the resulting ethical investment policy implemented risks have been adequately managed. University of Ethiopia and The Kenyan Society with effect from November 2013 confirms that for the Prevention of Cruelty to Animals) being the charity should not make any direct investment PUBLIC BENEFIT REQUIREMENT organisations with whom the charity has operated with an organisation: The Trustees confirm that they have complied donkey health and welfare projects for many years. • whose activities conflict with the objects of with the duty in Section 17 of the Charities Act Within all four of these projects well established the charity; 2011 to have due regard to public benefit guidance processes exist to monitor progress including • whose main activities relate to tobacco; published by the Charity Commission in determining periodic detailed financial reporting to the • whose activities cause pain, suffering, distress or the activities undertaken by the charity. Executive Team. lasting harm, except: The advancement of animal welfare is specified The charity receives numerous applications - where testing is mandatory by law; as an admissible charitable purpose within the for grant funding throughout each year from - where the organisation is only a retailer; Charities Act and is taken to include any purpose individuals and organisations and each application - where there exists a fixed date for cessation directed towards the prevention or suppression is given careful consideration by the Executive of testing. of cruelty to animals or the prevention or relief Team in the context of the charity’s overall Any companies that are deemed unacceptable of suffering by animals. Examples of the sorts of strategic objectives and also in terms of financial under this policy are removed from the portfolios charitable purposes falling within this resources available. All grant funding agreements within six months of the policy being introduced. description include: are subject to approval by the Executive Team and Periodic meetings are held between Investec and • Charities promoting kindness and to prevent or contain provision for regular reporting of progress selected Executives of the charity and on at least suppress cruelty to animals. against objectives set as well as providing suitable one occasion during each financial year Investec • Animal sanctuaries. financial reporting. meets with Trustees and Executives of the charity. • The provision of veterinary care and treatment. Any balance of surplus funds held by the charity
Pages 24&25 www.thedonkeysanctuary.org.uk Under the trust deed and rules of the charity records, sufficient to disclose at any time, with and charity law, the Trustees are responsible for reasonable accuracy, the financial position of the preparing the Trustees’ Annual Report and the charity at that time, and to enable the Trustees to financial statements in accordance with applicable ensure that, where any statements of accounts law and regulations. are prepared by it under section 132(1) of the Charity law requires the Trustees to prepare Charities Act 2011, those statements of accounts financial statements for each financial year. comply with the requirements of regulations under The group and charity’s financial statements are that provision. They have general responsibility required by law to give a true and fair view of the for taking such steps as are reasonably open to state of affairs of the group and the charity and of them to safeguard the assets of the charity and to the group’s excess of income over expenditure for prevent and detect fraud and other irregularities. that period. The Trustees are responsible for the In preparing these financial statements, maintenance and integrity of the financial and generally accepted accounting practice entails that other information included on the charity’s website. the Trustees: Legislation in the UK governing the preparation • select suitable accounting policies and then and dissemination of financial statements may differ apply them consistently; from legislation in other jurisdictions. • make judgements and estimates that are reasonable and prudent; • state whether applicable UK Accounting Standards and the Statement of Recommended Practice have been followed, subject to any material departures disclosed and explained in the financial statements; • state whether the financial statements comply with the trust deed and rules, 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 group and the charity will continue in business.
The trustees are required to act in accordance with the trust deed and the rules of the charity, within the framework of trust law. They are responsible for keeping proper accounting
Pages 26&27
KPMG LLP Plym House 3 Longbridge Road Plymouth PL6 8LT United Kingdom
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF THE DONKEY SANCTUARY
We have audited the group and charity financial statements (the 'financial statements') of The Donkey Sanctuary for the year ended 31 December 2013 set out on pages 30 to 64. The financial reporting framework that has been applied in their preparation is applicable law and UK Accounting Standards (UK Generally Accepted Accounting Practice).
This report is made solely to the charity's trustee as a body, in accordance with section 144 of the Charities Act 2011 (or its predecessors) and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's trustee those matters we are required to state to it in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustee as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of trustee and auditor
As explained more fully in the Statement of Trustees’ Responsibilities set out on page 27 the trustee is responsible for the preparation of financial statements which give a true and fair view.
We have been appointed as auditor under section 144 of the Charities Act 2011 (or its predecessors) and report in accordance with regulations made under section 154 of that Act. Our responsibility is to audit, and express an opinion on, the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements is provided on the Financial Reporting Council's website at www.frc.org.uk/auditscopeukprivate.
Opinion on financial statements In our opinion the financial statements:
give a true and fair view of the state of the group's and of the charity's affairs as at 31 December 2013 and of the group's incoming resources and application of resources for the year then ended; have been properly prepared in accordance with UK Generally Accepted Accounting Practice; and have been properly prepared in accordance with the requirements of the Charities Act 2011.
TRUSTEES REPORT AND ACCOUNTS 2013 27
The Donkey Sanctuary
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES Year ended 31 December 2013
Unrestricted Restricted Total Total Notes Funds Funds 2013 2012 Incoming Resources £’000 £’000 £’000 £’000 Incoming Resources from Generated Funds Voluntary income 2 26,802 774 27,576 24,712 Donated assets - The Elisabeth Svendsen Trust for 2 - - - 5,112 Children and Donkeys Activities for generating funds 3 1,138 - 1,138 1,149 Investment income 4 565 - 565 540 28,505 774 29,279 31,513 Other incoming resources Gain on disposals of fixed assets 74 - 74 34 Realised gain on disposals of fixed asset investments 1,153 - 1,153 496 Other income 216 - 216 178
Total incoming resources 29,948 774 30,722 32,221
Resources expended Costs of generating funds Cost of generating voluntary income 5 3,772 - 3,772 3,255 Fundraising trading: cost of goods sold and other costs 6 840 - 840 871 Investment management costs 75 - 75 82 4,687 - 4,687 4,208 Cost of Charitable activities 8 Donkey care 5,430 21 5,451 5,403 Donkey welfare support 1,922 22 1,944 1,674 Training, education and awareness 612 1 613 567 Veterinary services and research 2,922 5 2,927 2,784 Working worldwide 8,205 672 8,877 7,688 Donkey Assisted Therapy 2,503 81 2,584 2,765 21,594 802 22,396 20,881
Governance Costs 7 344 - 344 335
Total resources expended 8 26,625 802 27,427 25,424
Net incoming/(outgoing) resources before other recognised 3,323 (28) 3,295 6,797 gains and losses Unrealised gain/(loss) on revaluation of investment assets 847 - 847 500 Gain/(loss) on foreign currency translation 135 - 135 (114) Net movement in funds 4,305 (28) 4,277 7,183 Fund balances brought forward at 1 January 55,699 2,581 58,280 51,097
Total funds carried forward at 31 December 21 60,004 2,553 62,557 58,280
All of the activities relate to continuing operations. The accompanying notes form an integral part of the financial statements. TRUSTEES REPORT AND ACCOUNTS 2013 29
The Donkey Sanctuary
CONSOLIDATED CASH FLOW STATEMENT Year ended 31 December 2013 Notes 2013 2012 £'000 £'000 £'000 £'000 Net cash inflow from operating activities (i) 3,475 3,309
Returns on investments Interest received 40 100 Income from securities 498 446 Net cash inflow from returns on investments 538 546 Capital expenditure and financial investment Purchase of fixed asset investments (9,213) (4,677) Purchase of intangible fixed assets (105) (330) Purchase of tangible fixed assets (983) (769) Receipts from sale of tangible fixed assets 125 40 Receipts from sale of fixed asset investments 8,730 4,324 Net transfer of fixed asset investments from/(to) short-term 50 (408) cash deposits Net cash outflow from capital expenditure and financial (1,396) (1,820) investment
Increase in cash (ii) & (iii) 2,617 2,035
Notes to the consolidated cash flow statement i) Reconciliation of net incoming resources to net cash inflow from operating activities Net incoming resources before other recognised gains and losses 3,295 6,797 Depreciation charges 943 963 Amortisation charges 64 96 Loss on disposal of tangible fixed assets 18 57 Loss on disposal of fixed asset investments - 54 Currency translation account 44 1 Gain on disposal of tangible fixed assets (73) (34) Gain on disposal of fixed asset investments (1,153) (496) Non-cash asset transfers 23 - Investment income (565) (540) Donated assets retained 187 (3,522) Decrease/(Increase) in Stock 42 118 Decrease/(Increase) in Debtors 164 (140) Increase/(Decrease) in Creditors 486 (45) Net cash inflow from operating activities 3,475 3,309
ii) Changes in cash during the period Opening balance 7,564 5,530 Net cash inflow 2,617 2,035 Closing balance 10,181 7,565
iii) Analysis of cash as shown in the group balance sheet Change in year 2013 2012 2011 2013 2012 £'000 £'000 £'000 £'000 £'000 Short-term deposits 6,362 5,084 3,153 1,278 1,931 Cash at bank and in hand 3,819 2,480 2,377 1,339 103
10,181 7,564 5,530 2,617 2,034
The accompanying notes form an integral part of the financial statements.
TRUSTEES REPORT AND ACCOUNTS 2013 31 The Donkey Sanctuary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2013
1. Accounting Policies a) Basis of accounting These financial statements have been prepared under the historical cost convention, as modified by the revaluation of investments to market value and are in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (revised 2005) issued in March 2005, the Charities Act 2011 and applicable United Kingdom accounting standards.
The Trustees have confidence that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the group continues to adopt the going concern basis in preparing the financial statements.
The accounting policies adopted by the group are described below:
b) Consolidation These financial statements include the results of the charity together with the results of all the charity’s branches including those overseas, unless the results of those branches are not significant to the group. Consolidated accounts have been prepared for the year ended 31 December 2013 in accordance with FRS2 ‘Subsidiary Undertakings’.
The charity has taken advantage of the exemption contained in FRS8 ‘Related Party Transactions’, where disclosure is not required in consolidated financial statements of intra-group transactions and balances eliminated on consolidation.
The group has also taken advantage of s397 SORP2005 not to publish the Statement of Financial Activities and related notes for the parent charity (see note 26).
c) Incoming resources Incoming resources are included in the statement of financial activities when the group is legally entitled to the income and the amount can be quantified with reasonable accuracy.
i. Donations from supporters represent the amounts receivable by the charity from donors during the period. Gift aid on donations is accounted for on an accruals basis.
ii. Donated assets and other gifts in kind are included in donations at the value of the gift received. This is the reasonable estimate of the gross value to the charity.
iii. Legacy income: residuary legacy income is recognised when the charity is advised by the personal representative of an estate that payment will be made and the amount can be quantified; pecuniary legacy income is recognised on notification; and where a life tenancy exists income is deferred as disclosed in note 24. Payments on account of a legacy, whether received or advised by letter as forthcoming have been treated as incoming resources.
iv. Investment income represents interest arising in the UK and overseas on building society and bank deposits held by the group during the period, and have been included on an accruals basis, together with income from listed investments.
TRUSTEES REPORT AND ACCOUNTS 2013 32 The Donkey Sanctuary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2013
Accounting policies (continued)
v. Event income represents other fundraising activities carried out by the charity to generate incoming resources which will be used to undertake its charitable activities and includes fundraising events such as festivals and experience days.
vi. Trading income includes the sale of merchandise and catering income net of Value Added Tax. Goods donated for resale are included as income when they are sold and the cash received. d) Resources expended Expenditure is included on an accruals basis and incorporates provisions for known liabilities where a legal or constructive obligation existed at the balance sheet date that would commit the group to that expenditure. The purchase of goods and services has been treated as expenditure once the supplier has delivered the goods or performed the service.
i. Costs of generating funds The cost of generating voluntary income includes all costs incurred by the group in encouraging others to make gifts to it that are voluntary income. Such costs will typically include the costs of producing fundraising, advertising, marketing and direct mail materials. ii. Charitable expenditure The costs of charitable activities include the direct costs incurred on the activity, the direct costs of staff employed on the activity together with any grants payable in respect of that activity. Support costs are included in the costs of activities in the furtherance of the group’s objects, in order to present the full cost of those activities. iii.Support costs Support costs represent the head office costs of the Group. Support costs have been allocated between charitable activities, governance and the cost of generating funds on the basis of headcount, staff time, expenditure levels and the number of supported computer workstations. Details of the costs and basis of the allocations can be found in note 9 to the accounts. iv. Governance Governance costs relate to costs associated with the constitutional and statutory requirements of the group and include the costs of external audit, secretariat and other constitutional related costs. Further details of the items included in governance costs are included in note 7 to the accounts. v.Grant funding of activities Grants payable are accounted for when paid or charged to the statement of financial activities when a constructive obligation exists, notwithstanding that they may be paid in future accounting periods. e) Value added tax Irrecoverable VAT is included in the cost of the items reported in the financial statements. f) Taxation The Donkey Sanctuary is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable trust for UK income tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Part 10 Income Tax Act 2007 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
TRUSTEES REPORT AND ACCOUNTS 2013 33 The Donkey Sanctuary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2013
Accounting policies (continued) g) Operating leases Rentals payable under operating leases are charged to the Statement of Financial Activities as incurred. h) Foreign currency Transactions in foreign currencies are recorded using monthly average rates of exchange. Monetary assets and liabilities are translated into sterling at the exchange rates ruling at the balance sheet date. All exchange differences are taken to the Statement of Financial Activities.
The results of overseas subsidiary undertakings are translated at the average rates of exchange during the period and their balance sheets at the rates ruling at the balance sheet date. Exchange differences arising on the translation of the opening net assets and results of the overseas operations are reported in the Statement of Financial Activities under Other Recognised Gains and Losses. i) Pension costs A Group Personal Pension Scheme was introduced on 1 October 1997 and contributions to this scheme are charged in the accounting period in which they fall due. j) Intangible fixed assets and amortisation Intangible fixed assets are stated at cost less accumulated amortisation, and are recognised on the following basis:
i. Individual intangible assets of a value below £1,000 are not generally capitalised unless they form part of a larger asset; and
ii. Impairment reviews are undertaken when a development occurs that necessitates the replacement, disposal or otherwise of a particular asset or assets.
Amortisation is provided on all intangible fixed assets at rates calculated to write off the cost, less estimated residual value, of each asset over its expected useful life, as follows:
Software 10% straight line k) Tangible fixed assets and depreciation Tangible fixed assets are stated at cost less accumulated depreciation. Tangible fixed assets are recognised on the following basis:
i. Individual fixed assets of a value below £1,000 are not generally capitalised unless they form part of a larger project; ii. The group does not have any assets to capitalise of historic, scientific (including environmental) or artistic importance; iii. Impairment reviews are undertaken when a development occurs that necessitates the replacement, disposal or otherwise of a particular asset or assets; and iv. Assets under construction are held within freehold land and buildings; no depreciation charge is made until the period in which the asset is completed.
TRUSTEES REPORT AND ACCOUNTS 2013 34 The Donkey Sanctuary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2013
Accounting policies (continued) Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset over its expected useful life, as follows:
Leasehold property Straight line over the lease term Freehold buildings 2% straight line Equipment, fixtures and fittings 20% reducing balance Vehicles – cars 33 ⅓% reducing balance Vehicles – tractors and other vehicles 20% reducing balance l) Investments Stocks and shares are included in the accounts at market value. Unrealised gains and losses arising on the revaluation of investments are shown in the consolidated Statement of Financial Activities as unrealised gains and losses on revaluation of investment assets. Realised gains on the disposal of fixed asset investments are disclosed separately in the consolidated Statement of Financial Activities. Investments in subsidiary undertakings are stated at cost in the charity’s balance sheet and eliminated on consolidation in accordance with FRS2. m) Stocks Trading stock Valued at the lower of cost and net realisable value less provision for obsolete and slow moving stock
Major bought in items are individually identified and valued at Stock of feed, straw and bedding the cost of purchase. Other bought in items are valued at the lower of cost and net realisable value.
Veterinary supplies and Valued at the lower of cost and net realisable value. equipment, stores and other stock n) Fund accounting
i. Unrestricted funds are expendable at the discretion of the trustee in furtherance of the charity’s objects. If part of an unrestricted fund is earmarked for a particular project it may be designated as a separate fund, but the designation has an administrative purpose only, and does not legally restrict the trustee’s discretion to apply the fund. Income generated from assets held in unrestricted funds has been treated as unrestricted.
ii. Restricted funds are funds subject to specific trusts, which may be declared by the donor(s) or with their authority (e.g. in a public appeal) or created through legal process, but still within the wider objects of the charity. Restricted funds may be restricted income funds, which are expendable at the discretion of the trustee in furtherance of some particular aspect(s) of the objects of the charity. Or they may be capital (i.e. endowment) funds, where the assets are required to be invested, or retained for actual use, rather than expended. Income arising from endowments and restricted income funds has been treated as restricted in its own right unless the terms of the trust allow otherwise.
iii. Transfers between funds - these may arise when there is a release of restricted funds to unrestricted funds or charges are made from the unrestricted to other funds.
TRUSTEES REPORT AND ACCOUNTS 2013 35 The Donkey Sanctuary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2013
2. Voluntary income Unrestricted Restricted Total Total funds funds 2013 2012 £’000 £’000 £’000 £’000 Donations 7,473 146 7,619 6,741 Donated assets - The Elisabeth Svendsen Trust for - - - 5,112 Children and Donkeys Legacies 19,329 628 19,957 17,971 26,802 774 27,576 29,824
On 1 January 2012 the Donkey Assisted Therapy activities of our sister charity The Elisabeth Svendsen Trust for Children and Donkeys were incorporated into The Donkey Sanctuary group. The transfer of net assets on 1 January 2012 of £5,112k has been separately disclosed here and on the face of the Statement of Financial Activities due to the exceptional nature of the transaction (see note 25 for details of the merger).
3. Activities for generating funds Unrestricted Restricted Total Total funds funds 2013 2012 £’000 £’000 £’000 £’000
Rental income 25 - 25 14 Sale of donated assets 1 - 1 2 Trading turnover 1,112 - 1,112 1,133 1,138 - 1,138 1,149
4. Investment income
Unrestricted Restricted Total Total funds funds 2013 2012 £’000 £’000 £’000 £’000
Listed and unlisted investments 470 - 470 410 Charity investment bond 18 - 18 24 Building society and bank interest 77 - 77 106 565 - 565 540
5. Costs of generating voluntary income
Unrestricted Restricted Total Total funds funds 2013 2012 £’000 £’000 £’000 £’000
Fundraising 3,757 - 3,757 3,239 Legacies 15 - 15 16 3,772 - 3,772 3,255
TRUSTEES REPORT AND ACCOUNTS 2013 36 The Donkey Sanctuary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2013
6. Fundraising trading: Cost of goods sold and other costs
Unrestricted Restricted Total Total funds funds 2013 2012 £’000 £’000 £’000 £’000
Cost of sales 181 - 181 162 Trading costs of subsidiary undertakings 659 - 659 709 840 - 840 871
Included within the trading costs of subsidiary undertakings is £533k (2012: £584k) for Donkey World Limited and £126k (2012: £125k) for The Hayloft (Donkey Sanctuary) Limited (see note 25 for details of the trading activities of these subsidiaries).
7. Governance Costs Unrestricted Restricted Total Total funds funds 2013 2012 £’000 £’000 £’000 £’000 Audit and other financial services Audit fees - external audit 32 - 32 24 Audit fees - overseas audit 20 - 20 19 Other financial services provided by the auditors Consultancy & financial advice 2 - 2 2 Trustees Expenses 24 - 24 25 Apportionment of costs supporting Governance activities 266 - 266 265
344 - 344 335
The aggregate amount of reimbursed Trustee Director expenses was £13k (2012: £10k) in respect of travel accommodation and subsistence for eight (2012: eight) Trustee Directors during the year, and direct meeting costs of £11k (2012: £15k). There were no Trustee Director expenses outstanding for reimbursement at the end of the year.
TRUSTEES REPORT AND ACCOUNTS 2013 37 The Donkey Sanctuary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2013
8. Total resources expended
Other direct Grant funding Total Total Staff costs costs of activities Support costs 2013 2012 £’000 £’000 £’000 £’000 £’000 £’000 (Note 11) (Note 10) (Note 9) Cost of generating funds Cost of generating voluntary income Fundraising 298 2,789 - 670 3,757 3,239 Legacies - - - 15 15 16
Fundraising trading: Costs of goods sold and other costs
Cost of sales - 165 - 16 181 162 Trading costs of subsidiary undertakings - 659 - - 659 709
Investment management costs - 68 - 7 75 82
Charitable activities Donkey care 2,309 1,874 - 1,268 5,451 5,403 Donkey welfare support 673 773 - 498 1,944 1,674 Training, education and awareness 67 17 - 529 613 567 Veterinary services and research 1,251 796 227 653 2,927 2,784 Working worldwide 2,964 4,204 611 1,098 8,877 7,688 Donkey Assisted Therapy 1,407 550 - 627 2,584 2,765
Governance costs - 78 - 266 344 335
Expenditure in Support of Activities 3,807 1,811 29 (5,647) - -
12,776 13,784 867 - 27,427 25,424
Unrestricted Restricted Total Total funds funds 2013 2012 £’000 £’000 £’000 £’000 Cost of generating funds Cost of generating voluntary income Fundraising 3,757 - 3,757 3,239 Legacies 15 - 15 16 Fundraising trading: Costs of goods sold and other costs
Cost of sales 181 - 181 162 Trading costs of subsidiary undertakings 659 - 659 709
Investment management costs 75 - 75 82
Charitable activities Donkey care 5,430 21 5,451 5,403 Donkey welfare support 1,922 22 1,944 1,674 Training, education and awareness 612 1 613 567 Veterinary services and research 2,922 5 2,927 2,784 Working worldwide 8,205 672 8,877 7,688 Donkey Assisted Therapy 2,503 81 2,584 2,765
Governance costs 344 - 344 335 26,625 802 27,427 25,424
TRUSTEES REPORT AND ACCOUNTS 2013 38 The Donkey Sanctuary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2013
9. Support costs allocation
Finance, Information Human Direct Directorate legal & admin. technology resources support costs 2013 £’000 £’000 £’000 £’000 £’000 £’000 Cost of Generating Voluntary Income Fundraising 90 257 39 14 270 670 Legacies 10 - 5 - - 15 Fundraising trading: Costs of goods sold 3 11 - - 2 16 Investment management costs 1 5 - - 1 7 Cost of Charitable Activities Donkey care 98 316 30 156 668 1,268 Donkey welfare support 34 188 30 27 219 498 Training, education and awareness 2 6 21 3 497 529 Veterinary services and research 53 185 27 67 321 653 Working worldwide 211 564 100 107 116 1,098 Donkey Assisted Therapy 46 134 36 99 312 627 Governance Costs 144 121 - - 1 266
692 1,787 288 473 2,407 5,647
Basis of allocation: Estimated time & Estimated time & Supported Headcount Headcount & expenditure expenditure workstations expenditure
Finance, legal Information Human Direct Directorate & admin. technology resources support costs 2012 £’000 £’000 £’000 £’000 £’000 £’000 Cost of Generating Voluntary Income Fundraising 83 190 35 17 234 559 Legacies 9 - 7 - - 16 Fundraising trading: Costs of goods sold 2 8 - - 2 12 Investment management costs 1 4 - - 1 6 Cost of Charitable Activities Donkey care 101 236 38 142 656 1,173 Donkey welfare support 31 141 28 25 199 424 Training, education and awareness 2 4 23 11 444 484 Veterinary services and research 53 133 36 59 307 588 Working worldwide 194 371 116 66 98 845 Donkey Assisted Therapy 51 108 44 97 335 635 Governance Costs 148 116 - - 1 265
675 1,311 327 417 2,277 5,007
Basis of allocation: Estimated time & Estimated time & Supported Headcount Headcount & expenditure expenditure workstations expenditure
Direct Support Costs include the costs of health and safety, property maintenance services and central procurement and logistics, all of which provide support to operational, fundraising and governance functions.
TRUSTEES REPORT AND ACCOUNTS 2013 39 The Donkey Sanctuary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2013
10. Grants and Donations
Veterinary services and Working research worldwide 2013 2012 Institutional £’000 £’000 £’000 £’000
Overseas for the welfare of donkeys Afghanistan - Donkey Saddle Project - 3 3 - All About Animals - Gambia - 7 7 - Animal Nepal - 40 40 19 Aruba Donkey Sanctuary - Dutch Caribbean - 5 5 - Arusha Society for the Protection of Animals (ASPA) - Tanzania - 10 10 9 Association Humanitaria San Francisco De Asis - Peru - 3 3 3 Bonaire Donkey Sanctuary - Dutch Antilles - 9 9 9 Circle of Animal Lovers (COAL) - India - 4 4 8 Cretan Animal Welfare Society - Greece - 3 3 - Drought In East Africa - Disaster Management - - - 12 Ethiopia - NGO Regional Projects - 9 9 - DHWP - Faculty of Veterinary Medicine at the University of Ethiopia - 101 101 76
FAWCAM (Foundation for Animal Welfare, Cameroon) - - - 7 Gambia Horse & Donkey Trust - - - 3 Greek Animal Welfare Fund - 18 18 15 Greenfound Foundation Disaster Fund - Dutch Caribbean - 2 2 - Highveld Horse Care Unit - South Africa - - - 14 Iraq Small Grants Projects - 5 5 - Kenya Small Grants Workshop - 38 38 24 McGregor (Eseltjiesrus) Donkey Sanctuary - S. Africa - 5 5 - Meru Animal Welfare Org (MAWO) - Tanzania - 5 5 - Moroccan Muleteers Outdoor Trekking Research - 14 14 4 Mwamfumba Cooperative - Zambia - 5 5 4 Nicaragua Small Grants Projects - 6 6 - NSPCA - South Africa - 12 12 - Onderstepoort University - South Africa - - - 3 Pan African Animal Welfare Alliance (PAAWA) Conference - 3 3 - Peta Jones Donkey Power - South Africa - - - 2 Romania Vet Projects - 7 7 -
Society for Protection and Welfare of Donkeys and Mules in Egypt - 134 134 89 Sri Lanka Mannar Feral Donkeys - 1 1 1 St Kitts Saddlers Herbal Project - 3 3 - Student Research - India - - - 2 Tanzanian Animal Protection Organisation (TAPO) - 5 5 5 TAWESO - Tanzania - 9 9 5 The Donkey Sanctuary - India - 142 142 190 University of Bristol - Developing Countries Socio Economic Study 72 - 72 - University of Glasgow - Tryps Study, The Gambia 38 - 38 - University of Vienna - Austria - - - 48 Vet-Care Organization - Sudan - - - 10 ZAASO - Zanibar Animals Affection Society - Tanzania - - - 3 Items £1,000 or less - 3 3 1 110 611 721 566
TRUSTEES REPORT AND ACCOUNTS 2013 40 The Donkey Sanctuary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2013
10. Grants and donations (continued)
Veterinary services and Working research worldwide 2013 2012 Institutional £’000 £’000 £’000 £’000 UK for the welfare of donkeys Veterinary research grants: Manchester (MRES) 2 - 2 - University of Bristol 55 - 55 - University of Glasgow 60 - 60 46 Items £1,000 or less - - - - 117 - 117 46 Expenditure in support of activities - 29 29 32 Total 227 640 867 644
Grants payable to UK and overseas organisations are considered to be part of the costs of activities in the furtherance of the objects of the charity because much of the charity’s development programme is carried out through such grants to organisations whose objectives mirror those of the charity. Grants and donations for 2013 include those made to the Association in Egypt (SPWDME), the Faculty of Veterinary Medicine at the University of Ethiopia and to the Trust in India (The Donkey Sanctuary – India). Committed grants are fully provided for as at 31 December 2013. All grants made are to institutions. Expenditure in support of activities comprises salary costs.
As at 31 December 2013 full provision has been made for the following grants for 2014 and beyond:
£’000
Veterinary research grant – University of Bristol 120
Veterinary research grant – University of Glasgow 97
Veterinary research grant – University of Veterinary Medicine, Vienna 12
TRUSTEES REPORT AND ACCOUNTS 2013 41 The Donkey Sanctuary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2013
11. Staff costs
2013 2012 £’000 £’000 Staff costs for the year were as follows: Salary costs 10,895 10,687 Social security costs 1,109 1,059 Pension contributions 772 718 12,776 12,464
The full time equivalent average number of staff employed during the year was as follows:
2013 2012 No. No. Donkey care 101 99 Donkey welfare support 18 17 Training, education and awareness 2 3 Veterinary services and research 43 41 Working worldwide 157 138 Donkey Assisted Therapy 64 68 Fundraising 17 21 Support activities 118 105 520 492
The number of employees whose emoluments amounted to over £60,000 in the year was as follows:
2013 2012 No. No. £60,001 -£70,000 - 1 £70,001 -£80,000 5 5 £80,001 -£90,000 1 - £90,001 -£100,000 - 1 £100,001 -£110,000 1 1 7 8
Six of the above employees (2012: seven) have retirement benefits accruing to them under money purchase pension schemes and the contributions in the year in respect of these were £75k (2012: £79k). Emoluments include salary and benefits in kind but exclude pension scheme contributions.
No remuneration was paid to any trustee or to any person connected with them during the year.
TRUSTEES REPORT AND ACCOUNTS 2013 42 The Donkey Sanctuary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2013
12. Intangible fixed assets: Software
Group Charity £’000 £’000 Cost At 1 January 2013 745 717 Additions 105 96 Disposals (23) (19) At 31 December 2013 827 794
Amortisation At 1 January 2013 102 102 Charge for the year 64 61 At 31 December 2013 166 163
Net book value At 31 December 2013 661 631
At 31 December 2012 643 615
Assets under construction amounting to £nil (2012:£19k) have not been amortised.
TRUSTEES REPORT AND ACCOUNTS 2013 43 The Donkey Sanctuary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2013
13. Tangible fixed assets Group
Freehold Vehicles Equipment Leasehold land and and fixtures and Total fixed property buildings tractors fittings assets £'000 £'000 £'000 £'000 £'000 Cost At 1 January 2013 1,567 23,302 3,759 3,496 32,124 Additions - 373 361 223 957 Disposals - (21) (218) (169) (408) Foreign currency translation adjustment - 89 9 13 111 At 31 December 2013 1,567 23,743 3,911 3,563 32,784
Depreciation At 1 January 2013 34 4,512 2,784 2,550 9,880 Charge for the year 34 402 265 242 943 Adjustment for disposals - - (178) (161) (339) Foreign currency translation adjustment - 6 6 7 19 At 31 December 2013 68 4,920 2,877 2,638 10,503
Net book value At 31 December 2013 1,499 18,823 1,034 925 22,281
At 31 December 2012 1,533 18,790 975 946 22,244
The net book value represents fixed assets used for: Direct charitable purpose Donkey Care - 11,641 375 393 12,409 Donkey Welfare Support - - 80 6 86 Training, Education and Awareness - - 1 - 1 Veterinary Services and Research - 220 34 73 327 Working Worldwide - 4,802 284 271 5,357 Donkey Assisted Therapy 1,499 1,994 174 66 3,733
Other purposes Fundraising - - - 6 6 Administration and support - 166 86 110 362 1,499 18,823 1,034 925 22,281 The leasehold property at the Birmingham Donkey Assisted Therapy Centre at Sutton Park is held on a 75 year lease granted on 30 January 1995 by Birmingham City Council (from 25 November 1993). The current rental is £3,750 per annum, payable half-yearly in advance and subject to a review every five years. The last review was due to take place on 25 November 2013.
The leasehold property at the Leeds Donkey Assisted Therapy Centre at Lineham Farm is held on a 50 year lease granted on 23 November 1998 by Leeds City Council. The lease rental is currently at the rate of £1,500 per annum, payable half-yearly in advance. A rent review has been agreed until the end of the year beginning 23 November 2017 as follows: 23 November 2014 £1,750 23 November 2015 £2,000 23 November 2016 £2,250 23 November 2017 £2,500 TRUSTEES REPORT AND ACCOUNTS 2013 44 The Donkey Sanctuary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2013
13. Tangible fixed assets (continued)
The leasehold property at the Manchester Donkey Assisted Therapy Centre at Debdale Park is held on a 50 year lease granted on 10 July 2003 by Manchester City Council. From 10 July 2013 the lease rental is £1,100 per annum payable quarterly in advance on the usual quarter days. The next rent review is due to take place on 10th July 2018.
Freehold land amounting to £3,637k has not been depreciated (2012: £3,630k) and assets under construction amounting to £58k (2012: £37k) are included within freehold land and buildings additions. These have not been depreciated.
Tangible fixed assets – Charity
Freehold Vehicles Equipment Leasehold land and and fixtures and Total fixed property buildings tractors fittings assets £'000 £'000 £'000 £'000 £'000 Cost At 1 January 2013 1,567 19,823 2,908 2,639 26,937 Additions - 278 346 150 774 Disposals - (10) (206) (160) (376) At 31 December 2013 1,567 20,091 3,048 2,629 27,335
Depreciation At 1 January 2013 34 4,267 2,128 1,931 8,360 Charge for the year 34 344 186 151 715 Adjustment for disposals - - (167) (152) (319) At 31 December 2013 68 4,611 2,147 1,930 8,756
Net book value At 31 December 2013 1,499 15,480 901 699 18,579
At 31 December 2012 1,533 15,556 780 708 18,577
The net book value represents fixed assets used for: Direct charitable purpose Donkey Care - 11,641 375 393 12,409 Donkey Welfare Support - - 80 6 86 Training, Education and Awareness - - 1 - 1 Veterinary Services and Research - 220 35 72 327 Working Worldwide - 1,459 150 46 1,655 Donkey Assisted Therapy 1,499 1,994 174 66 3,733
Other purposes Fundraising - - - 6 6 Administration and support - 166 86 110 362 1,499 15,480 901 699 18,579
Freehold land amounting to £2,594k has not been depreciated (2012: £2,603k) and assets under construction amounting to £42k (2012: 37k) are included within freehold land and buildings additions.
TRUSTEES REPORT AND ACCOUNTS 2013 45 The Donkey Sanctuary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2013
14. Fixed asset investments
Group Charity 2013 2012 2013 2012 Valuation £’000 £’000 £’000 £’000 Opening balance 17,149 15,258 17,111 15,358 Additions 9,213 4,865 9,213 4,727 Disposals and withdrawals (7,765) (3,882) (7,577) (3,882) Transfers (50) 408 (50) 408 Unrealised gain/(loss) 847 500 847 500 Closing balance 19,394 17,149 19,544 17,111
Fixed asset investments are detailed below: Investments in subsidiary undertakings Donkey World Limited - 150,000 Ordinary shares of £1 each - - 150 150 The Hayloft (Donkey Sanctuary) Limited - 4 Ordinary shares of £1 each - - - -
Indirect investment in UK listed securities UK fixed interest bonds 1,946 2,474 1,946 2,474 Property backed fund 150 - 150 - UK equities 7,051 5,391 7,051 5,391 Cash funds 400 - 400 - Alternative assets 155 - 155 - Indirect investment in overseas listed securities International bonds 329 637 329 637 Overseas equities 5,252 4,607 5,252 4,607 Total listed investments 15,283 13,109 15,433 13,259
Other Programme-related investments 80 - 80 - Investment management cash accounts 652 436 652 436 Building society deposits 1,029 1,204 1,029 1,016 Cash-based investment deposits 2,350 2,400 2,350 2,400 19,394 17,149 19,544 17,111
No individual investments held at 31 December 2013 or 31 December 2012 had a market value in excess of 5% of the total market value of listed investments.
TRUSTEES REPORT AND ACCOUNTS 2013 46 The Donkey Sanctuary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2013
15. Stock
Group Charity 2013 2012 2013 2012 £'000 £'000 £'000 £'000 Trading stock (including charity stock) 280 299 61 87 Stock of feed, straw and bedding 163 132 110 101 Veterinary supplies, equipment, stores and other 142 196 92 105 585 627 263 293
16. Debtors and prepayments
Group Charity 2013 2012 2013 2012 £'000 £'000 £'000 £'000 Amounts due from subsidiary undertakings and - - 277 279 connected parties Other debtors 40 34 60 19 Income tax recoverable 345 207 345 185 Residual legacies 10,949 10,988 10,612 10,294 Prepayments 135 314 141 322 Accrued income 33 96 28 58 11,502 11,639 11,463 11,157
17. Creditors: amounts falling due within one year
Group Charity 2013 2012 2013 2012 £'000 £'000 £'000 £'000 Amounts due to subsidiary undertakings and - - 131 52 connected parties Accounts payable 794 624 568 530 Social security and other taxes 297 293 209 218 Other creditors 396 245 334 179 Accruals 560 424 406 272 2,047 1,586 1,648 1,251
TRUSTEES REPORT AND ACCOUNTS 2013 47 The Donkey Sanctuary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2013
18. Provision for liabilities
Group Charity 2013 2012 2013 2012 Pension scheme - Section 75 debt: £'000 £'000 £'000 £'000 Balance at beginning of period - 97 - 97 Amounts charged to SOFA during the period - (97) - (97) Balance at end of period - - - -
Pension scheme – Section 75 debt As part of the winding up process of The Donkey Sanctuary’s 1988 Staff Retirement Benefits Scheme (‘The Scheme’) the Trustee of the scheme is required to make provision for recovery of any deficiency of liabilities over assets as well as for any expenses to be incurred in completing the winding up of the scheme from the sponsoring employer, known as the Section 75 debt. During 2012 the remaining Section 75 debt owed by the charity to the scheme was discharged.
19. Pension scheme Defined Contribution Scheme The charity provides a Group Personal Pension Scheme operated by AEGON Scottish Equitable. Six categories of employer contributions operate within the scheme which is based upon the seniority of each member. The cost for the accounting period is disclosed in note 11. No amounts were outstanding at the end of the year. A contribution by all staff is required, with the exception of the most senior category which is non-contributory. The defined contribution nature of the scheme, therefore, avoids the potential volatility of employer pension costs experienced by the previously operated defined benefit schemes.
20. Capital commitments At the end of the year the group had no contracts for capital commitments that have not been accrued within these accounts.
At 31 December 2013 the group was committed to spend the following amounts in 2013 and beyond: 31.12.13 31.12.12 £’000 £’000
Authorised but not contracted at period end 1,643 1,171
TRUSTEES REPORT AND ACCOUNTS 2013 48 The Donkey Sanctuary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2013
21. Analysis of movement in funds The reserves of the group include restricted funds which comprise incoming resources held on trusts to be applied for those specific purposes as described in the table below. The group has sufficient resources held in an appropriate form to enable each fund to be applied in accordance with any restrictions.
The source of the incoming resources is represented by funds raised from: . local or national fundraising activities, all of which have been completed by the end of the period; or . specific donations or legacies requesting the funds be applied as specified by the donor
Tangible fixed asset funds represent funds received in respect of specific items of equipment, vehicles or capital building projects, all of the funding relating thereto having been spent by the end of the financial year. Each tangible asset fund is amortised so as to match the depreciation rate of the associated asset.
Current asset funds are funds received for which the associated project has yet to commence or had yet to be fully utilised by the end of the financial year. Funds are held in cash at bank and in hand until the project is complete.
Operating cost funds are funds relating to the operational projects (i.e. non capital projects) of the charity and ordinarily are spent before the end of the financial year.
TRUSTEES REPORT AND ACCOUNTS 2013 49 The Donkey Sanctuary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2013
21. Analysis of movement in funds (continued)
Transfers Other Balance at Incoming Outgoing Between recognised Balance at Group 01.01.13 Resources Resources funds gains 31.12.13 £'000 £'000 £'000 £'000 £'000 £'000 Restricted funds Tangible fixed asset funds Donkey Sanctuary: Farm Buildings (UK) 314 26 (8) - - 332 Veterinary & Isolation Facilities 409 - (10) - - 399 Veterinary Equipment 23 - (4) - - 19 Farm Equipment and Machinery 3 15 (3) - - 15 Education & Activities Vehicles 6 - (2) - - 4 Donkey Assisted Therapy (Formerly EST): DAT Centres 1,446 - (36) 22 - 1,432 DAT Centre Equipment 35 - (9) 2 - 28 DAT Centre Vehicles 44 - (9) - - 35 Education & Activities Vehicles 37 - (9) 12 - 40
Current asset fund Donkey Sanctuary: Turks & Caicos 187 - - - - 187 Donkey welfare UK - - - 10 - 10 Donkey Assisted Therapy (Formerly EST): DAT Centres 3 17 - (3) - 17 DAT Centre Equipment 62 5 - (35) - 32 Education & Activities Vehicles 12 2 - (12) - 2
Operating cost funds Donkey Sanctuary: Donkey welfare UK - 42 (45) 4 - 1 Donkey welfare overseas - 667 (667) - - - Total restricted funds 2,581 774 (802) - - 2,553
Unrestricted funds General Fund 33,964 29,948 (25,708) (1,463) 982 37,723 Designated funds 21,735 - (917) 1,463 - 22,281
Total unrestricted funds 55,699 29,948 (26,625) - 982 60,004
Total group funds 58,280 30,722 (27,427) - 982 62,557
TRUSTEES REPORT AND ACCOUNTS 2013 50 The Donkey Sanctuary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2013
21. Analysis of movement in funds (continued)
Transfers Other Balance at Incoming Outgoing Between recognised Balance at Charity 01.01.13 Resources Resources funds gains 31.12.13 £'000 £'000 £'000 £'000 £'000 £'000 Restricted funds Tangible fixed asset funds Donkey Sanctuary: Farm Buildings (UK) 314 26 (8) - - 332 Veterinary & Isolation Facilities 409 - (10) - - 399 Veterinary Equipment 23 - (4) - - 19 Farm Equipment and Machinery 3 15 (3) - - 15 Education & Activities Vehicles 6 - (2) - - 4 Donkey Assisted Therapy (Formerly EST): DAT Centres 1,446 - (36) 22 - 1,432 DAT Centre Equipment 35 - (9) 2 - 28 DAT Centre Vehicles 44 - (9) - - 35 Education & Activities Vehicles 37 - (9) 12 - 40 ------Current asset fund Donkey Sanctuary: Turks & Caicos 187 - - - - 187 Donkey welfare UK - - - 10 - 10 Donkey Assisted Therapy (Formerly EST): DAT Centres 3 17 - (3) - 17 DAT Centre Equipment 62 5 - (35) - 32 DAT Centre Vehicles ------Education & Activities Vehicles 12 2 - (12) - 2 ------Operating cost funds Donkey Sanctuary: Donkey welfare UK - 42 (45) 4 - 1 Donkey welfare overseas - 667 (667) - - - Total restricted funds 2,581 774 (802) - - 2,553
Unrestricted funds General Fund 33,116 28,424 (23,501) (1,316) 847 37,570 Designated funds 17,711 - (762) 1,316 - 18,265 Total unrestricted funds 50,827 28,424 (24,263) - 847 55,835
Total charity funds 53,408 29,198 (25,065) - 847 58,388
TRUSTEES REPORT AND ACCOUNTS 2013 51 The Donkey Sanctuary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2013
22. Designated funds
Designated fund movements - Group
Balance at Additional Depreciation Balance at 01.01.13 Transferred approved Released and disposals 31.12.13 £'000 £'000 £'000 £'000 £'000 £'000
Intangible fixed assets fund 687 - 448 - (87) 1,048 Tangible fixed assets fund 21,048 - 1,015 - (830) 21,233 21,735 - 1,463 - (917) 22,281
Designated fund movements – Charity
Balance at Additional Depreciation Balance at 01.01.13 Transferred approved Released and disposals 31.12.13 £'000 £'000 £'000 £'000 £'000 £'000
Intangible fixed assets fund 663 - 435 - (80) 1,018 Tangible fixed assets fund 17,048 - 881 - (682) 17,247 17,711 - 1,316 - (762) 18,265
Intangible Fixed Assets Fund – this fund represents the amalgamation of: a) Unrestricted income funds that could only be released by disposing of intangible fixed assets held for charitable use. b) Unrestricted income funds designated for specific future capital projects for which the Trustee has authorised but not contracted the related expenditure as set out in note 20.
Tangible Fixed Assets Fund – this fund represents the amalgamation of: a) Unrestricted income funds that could only be released by disposing of tangible fixed assets held for charitable use. b) Unrestricted income funds designated for specific future capital projects for which the Trustee has authorised but not contracted the related expenditure as set out in note 20.
TRUSTEES REPORT AND ACCOUNTS 2013 52 The Donkey Sanctuary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2013
23. Analysis of net assets – Group
Total group Intangible Tangible fixed Current Current net assets at fixed assets assets Investments assets liabilities 31.12.13 £'000 £'000 £'000 £'000 £'000 £'000
Restricted funds - 2,304 - 249 - 2,553
Unrestricted funds: General funds - - 19,394 20,376 (2,047) 37,723 Designated funds 661 19,977 - 1,643 - 22,281
661 22,281 19,394 22,268 (2,047) 62,557
23. Analysis of net assets – Charity
Total charity Intangible Tangible fixed Current Current net assets at fixed assets assets Investments assets liabilities 31.12.13 £'000 £'000 £'000 £'000 £'000 £'000
Restricted funds - 2,304 - 249 - 2,553 Unrestricted funds: General funds - - 19,544 19,674 (1,648) 37,570 Designated funds 631 16,275 - 1,359 - 18,265
631 18,579 19,544 21,282 (1,648) 58,388
24. Legacies receivable At the end of the year the group was entitled to receive an estimated £5,666k (2012: £5,690k) from residual legacies subject to life tenancies. These mainly comprise shares in properties and investments held in trusts.
25. Subsidiaries and related party transactions
The Donkey Sanctuary’s subsidiaries, El Refugio Del Burrito, Il Rifugio Degli Asinelli O.N.L.U.S, The Donkey Sanctuary (Cyprus) Limited, The Donkey Sanctuary (Ireland) Limited, Stichting The Donkey Sanctuary Nederland, The International Donkey Protection Trust, The Elisabeth Svendsen Trust for Children and Donkeys, The Donkey Sanctuary Kenya, Donkey World Limited and The Hayloft (Donkey Sanctuary) Limited are incorporated into the consolidated accounts in accordance with FRS2 using the acquisition accounting method.
El Refugio Del Burrito El Refugio Del Burrito (an Association registered in Spain whose registered office is at Avda. Ricardo Soriano, 12, Edif. Marques de Salamanca, 2nd floor-office 8, 29600 Marbella – Malaga (Spain)) qualifies as a subsidiary undertaking of The Donkey Sanctuary due to the composition of its board of Directors (see below).
TRUSTEES REPORT AND ACCOUNTS 2013 53 The Donkey Sanctuary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2013
25. Subsidiaries and Related Party Transactions (continued)
The Directors of El Refugio Del Burrito are: Mr J.E. Akers Executive officer of The Donkey Sanctuary Mr D.A.H. Cook Executive officer of The Donkey Sanctuary Mr A. Foxcroft Executive officer of The Donkey Sanctuary (appointed 3 July 2013) Mrs M. Steele Executive officer of The Donkey Sanctuary (appointed 17 March 2014) Mrs M.E.A. Taylor Welfare officer of The Donkey Sanctuary (resigned 17 March 2014) Mr C. Young Executive officer of The Donkey Sanctuary
The income and costs of El Refugio Del Burrito relate to the provision of care, protection and or permanent security anywhere in the world for donkeys and mules which are in need of attention by reason of sickness, maltreatment, poor circumstances, ill-usage or other like causes and the prevention of cruelty and suffering among donkeys and mules. Transactions have been included within the consolidated results of the charitable activities of The Donkey Sanctuary.
2013 2012 £’000 £’000 Total incoming resources 991 889
Total cost of charitable activities (981) (909) Governance cost (5) (5)
Total resources expended (986) (914)
Net incoming/(outgoing) resources for the year 5 (25)
As at 31 December 2013, El Refugio Del Burrito had net assets of £1,995k (2012: £1,962k). This comprised assets of £2,025k (2012: £1,995k) and liabilities of £30k (2012: £34k)
Il Rifugio Degli Asinelli (O.N.L.U.S.) Il Rifugio Degli Asinelli O.N.L.U.S (an Association registered in Italy whose registered office is at Via Per Zubiena 62, 13884 Sala Biellese, Italy) qualifies as a subsidiary undertaking of The Donkey Sanctuary due to the composition of its board of Directors (see below).
The Directors of Il Rifugio Degli Asinelli O.N.L.U.S are:
Mr J.E. Akers Executive officer of The Donkey Sanctuary Mr D.A.H. Cook Executive officer of The Donkey Sanctuary Mr A. Foxcroft Executive officer of The Donkey Sanctuary (appointed 3 July 2013) Mrs M. Steele Executive officer of The Donkey Sanctuary Mr C. Young Executive officer of The Donkey Sanctuary
The income and costs of Il Rifugio Degli Asinelli O.N.L.U.S relate to the provision of care, protection and or permanent security anywhere in the world for donkeys and mules which are in need of attention by reason of sickness, maltreatment, poor circumstances, ill-usage or other like causes and the prevention of cruelty and suffering among donkeys and mules. Transactions have been included within the consolidated results of the charitable activities of The Donkey Sanctuary.
TRUSTEES REPORT AND ACCOUNTS 2013 54 The Donkey Sanctuary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2013
25. Subsidiaries and Related Party Transactions (continued)
2013 2012 £’000 £’000 Total incoming resources 663 580
Total cost of charitable activities (693) (564) Governance cost (2) (2)
Total resources expended (695) (566)
Net (outgoing)/ incoming resources for the year (32) 14
As at 31 December 2013, Il Rifugio Degli Asinelli O.N.L.U.S had net assets of £1,499k (2012: £1,492k). This comprised assets of £1,647k (2012: £1,614k) and liabilities of £148k (2012: £122k).
The Donkey Sanctuary (Cyprus) Limited The Donkey Sanctuary (Cyprus) Limited (a Company registered in Cyprus whose registered office is at Georgiou Gennadiou, 10A, Agathangelos Court, 2nd Floor, Flat 203, Limassol, Cyprus) qualifies as a subsidiary undertaking of The Donkey Sanctuary due to the composition of its board of Directors (see below).
The Directors of The Donkey Sanctuary (Cyprus) Limited are:
Mr J.E. Akers Executive officer of The Donkey Sanctuary Mr D.A.H. Cook Executive officer of The Donkey Sanctuary Mr A. Foxcroft Executive officer of The Donkey Sanctuary (appointed 3 July 2013) Mr C. Young Executive officer of The Donkey Sanctuary
The income and costs of The Donkey Sanctuary (Cyprus) Limited relate to the provision of care, protection and or permanent security anywhere in the world for donkeys and mules which are in need of attention by reason of sickness, maltreatment, poor circumstances, ill-usage or other like causes and the prevention of cruelty and suffering among donkeys and mules. Transactions have been included within the consolidated results of the charitable activities of The Donkey Sanctuary.
2013 2012 £’000 £’000 Total incoming resources 302 507
Total cost of charitable activities (342) (506) Governance cost (2) (2)
Total resources expended (344) (508)
Net outgoing resources for the year (42) (1)
As at 31 December 2013, The Donkey Sanctuary (Cyprus) Limited had net assets of £73k (2012:104k). This comprised assets of £87k (2012: £116k) and liabilities of £14k (2012: £12k).
TRUSTEES REPORT AND ACCOUNTS 2013 55 The Donkey Sanctuary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2013
25. Subsidiaries and Related Party Transactions (continued)
The Donkey Sanctuary (Ireland) Limited The Donkey Sanctuary (Ireland) Limited was incorporated on 21 January 2011 (a company limited by guarantee and registered in Ireland (Registered Charity CHY11617) whose registered office is Liscarroll, Mallow, County Cork, Ireland). The company commenced its charitable activities on 1 September 2011 and qualifies as a subsidiary undertaking by virtue of the degree of management and control exerted by The Donkey Sanctuary.
The Directors of The Donkey Sanctuary (Ireland) Limited are:
Mr N. Carton Operations Manager of The Donkey Sanctuary (Ireland) Limited (Appointed 20 March 2013) Mr D.A.H. Cook Executive officer of The Donkey Sanctuary Ms S. Cush Of independent status Mr E. Dempsey Of independent status Mr A. Foxcroft Executive officer of The Donkey Sanctuary (Appointed 20 March 2013) Mr D. Healy Of independent status Mr C. Young Executive officer of The Donkey Sanctuary
The income and costs of The Donkey Sanctuary (Ireland) Limited relate to the provision of care, protection and or permanent security anywhere in the world for donkeys and mules which are in need of attention by reason of sickness, maltreatment, poor circumstances, ill-usage or other like causes and the prevention of cruelty and suffering among donkeys and mules. Transactions have been included within the consolidated results of the charitable activities of The Donkey Sanctuary.
2013 2012 £’000 £’000 Total incoming resources 2,443 2,779
Total cost of charitable activities (2,786) (2,541) Governance cost (7) (7) (2,793) (2,548) Total resources expended
Net (outgoing)/incoming resources for the year (350) 231
As at 31 December 2013, The Donkey Sanctuary (Ireland) Limited had net assets of £195k (2012: £512k). This comprised assets of £326k (2012: £582k) and liabilities of £131k (2012: £70k).
TRUSTEES REPORT AND ACCOUNTS 2013 56 The Donkey Sanctuary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2013
25. Subsidiaries and Related Party Transactions (continued)
Stichting The Donkey Sanctuary Nederland Stichting The Donkey Sanctuary Nederland was incorporated on 3 June 2010 (a Foundation registered in Holland whose registered office is Polarisavenue 83 I, 2132 JH Hoofddorp, Holland). The foundation commenced its charitable activities on 1 February 2011 and qualifies as a subsidiary undertaking of The Donkey Sanctuary due to the composition of its board of Directors (see below).
The Directors of Stichting The Donkey Sanctuary Nederland are:
Mr J.E. Akers Executive officer of The Donkey Sanctuary Mr D.A.H. Cook Executive officer of The Donkey Sanctuary Mrs M. Steele Executive officer of The Donkey Sanctuary Mr C. Young Executive officer of The Donkey Sanctuary
The income and costs of Stichting The Donkey Sanctuary Nederland relate to fundraising for the charitable objectives of The Donkey Sanctuary. Transactions have been included within the consolidated costs of generating voluntary income for The Donkey Sanctuary.
2013 2012 £’000 £’000 Total incoming resources 468 455
Total cost of activities (461) (485) Governance cost (6) -
Total resources expended (467) (485)
Net incoming/(outgoing) resources for the year 1 (30)
As at 31 December 2013, Stichting The Donkey Sanctuary Nederland had net assets of £nil (2012: £2k). This comprised assets of £141k (2012: £2k) and liabilities of £141k (2012: £nil).
The Donkey Sanctuary Kenya Limited The Donkey Sanctuary Kenya Limited was incorporated on 5th March 2010 (a Company limited by guarantee and registered in Kenya whose registered office is at Kenya Society for the Protection & Care of Animals (KSPCA) – Karen office, Langata Road, PO Box 24203-00502, Nairobi). The company commenced its charitable activities in October 2010 and qualifies as a subsidiary undertaking of The Donkey Sanctuary due to the composition of its board of Directors (see below).
The Directors of The Donkey Sanctuary Kenya Limited are: Mr D.A.H. Cook Executive officer of The Donkey Sanctuary Mr J.L Duncan Director of The Donkey Sanctuary (Trustee) Limited Mrs J. Gilchrist Of independent status Mr R.C Nichols Officer of The Donkey Sanctuary Dr S. Varma Of independent status
TRUSTEES REPORT AND ACCOUNTS 2013 57 The Donkey Sanctuary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2013
25. Subsidiaries and Related Party Transactions (continued)
The income and costs of The Donkey Sanctuary Kenya Limited relate to the provision of care, protection and or permanent security anywhere in the world for donkeys and mules which are in need of attention by reason of sickness, maltreatment, poor circumstances, ill-usage or other like causes and the prevention of cruelty and suffering among donkeys and mules. Transactions have been included within the consolidated results of the charitable activities of The Donkey Sanctuary.
2013 2012 £’000 £’000 Total incoming resources 412 459
Total cost of charitable activities (413) (386) Governance cost (1) (1)
Total resources expended (414) (387)
Net (outgoing)/incoming resources for the year (2) 72
As at 31 December 2013, The Donkey Sanctuary Kenya Limited had net assets of £43k (2012: £74k). This comprised assets of £44k (2012: £76k) and liabilities of £1k (2012: £2k).
The International Donkey Protection Trust Since 1 October 2000, when the objects of The Donkey Sanctuary were amended by the Charity Commission, The Donkey Sanctuary has taken the responsibility for all overseas work previously carried out by the International Donkey Protection Trust (IDPT) and the Trustees of IDPT resolved to pass all funds received by IDPT to The Donkey Sanctuary. However, IDPT still exists as a “shell” charity with the full knowledge and agreement of the Charity Commission.
On 21st December 2010, the Charity Commission granted a scheme under which The International Donkey Protection Trust would be incorporated within the Charity. Under this uniting direction, IDPT is treated as forming part of The Donkey Sanctuary for the purposes of Part 4 (registration) and Part 8 (accounting) of the Charities Act 2011. The income of the International Donkey Protection Trust relates to legacy and donation income generated for the charitable objectives of The Donkey Sanctuary. Transactions have been included within the consolidated voluntary income of The Donkey Sanctuary.
2013 2012 £’000 £’000 Total incoming resources 330 490
Amount donated to The Donkey Sanctuary (603) (369)
Net (outgoing)/incoming resources for the year (273) 121
As at 31 December 2013, The International Donkey Protection Trust had net assets of £273k (2012: £546k). This comprised assets of £273k (2012: £546k).
TRUSTEES REPORT AND ACCOUNTS 2013 58 The Donkey Sanctuary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2013
25. Subsidiaries and Related Party Transactions (continued)
The Elisabeth Svendsen Trust for Children and Donkeys (EST) On 2 December 2011 the Trustees of The Donkey Sanctuary Trustee Limited (“The Company”) and the Incorporated Trustees of The Elisabeth Svendsen Trust for Children and Donkeys (“EST”) agreed to proceed with the merging of EST’s activities into those of The Donkey Sanctuary with the intention that The Company would act as Trustee of both The Donkey Sanctuary and EST.
On 21 December 2011 the Charity Commission granted a Scheme under which EST would be incorporated within The Donkey Sanctuary and has agreed to the new objects for the merged charity. The effective date of the Scheme was 1 January 2012 and under this uniting direction, EST is treated as forming part of The Donkey Sanctuary for the purposes of Part 4 (registration) and Part 8 (accounting) of the Charities Act 2011. EST still exists as a “shell” charity with the full knowledge and agreement of the Charity Commission.
As part of the agreement EST transferred the fair value of its net assets, amounting to £5,112k, to The Donkey Sanctuary on 1 January 2012 and all subsequent Donkey Assisted Therapy activity has been consolidated into the accounts of The Donkey Sanctuary in accordance with Financial Reporting Standard No 2.
The income of The Elisabeth Svendsen Trust for Children and Donkeys relates to legacy and donation income generated for the charitable objectives of The Donkey Sanctuary. Transactions have been included within the consolidated results of the charitable activities of The Donkey Sanctuary.
2013 2012 £’000 £’000 Total incoming resources 320 1,124 Total cost of activities - (143)
Amount donated to The Donkey Sanctuary (410) (5,912)
Net outgoing resources for the year (90) (4,931)
As at 31 December 2013, The Elisabeth Svendsen Trust for Children and Donkeys had net assets of £78k (2012: £180k). This comprised assets of £78k (2012: £180k) and liabilities of £nil (2012: £nil).
TRUSTEES REPORT AND ACCOUNTS 2013 59 The Donkey Sanctuary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2013
25. Subsidiaries and Related Party Transactions (continued)
Donkey World Limited Donkey World Limited “The Company” was incorporated on 30 May 2002 and commenced trading on 1 October 2002 to conduct trading activities in support of the charitable objects of The Donkey Sanctuary and The Elisabeth Svendsen Trust for Children and Donkeys. The principal activity is the sale of merchandise by mail order through a catalogue and the internet and sales at our Visitor Centres.
The Donkey Sanctuary holds 150,000 Ordinary Shares of £1 each in Donkey World Limited, the shares representing a holding of 100% in the company.
The Directors of Donkey World Limited are:
Mr D.A.H. Cook Executive officer of The Donkey Sanctuary Mr J. Dale Of independent status Mrs M.J. Steele Executive officer of The Donkey Sanctuary Mr C. Young Executive officer of The Donkey Sanctuary
The Directors have agreed that the Company, by virtue of its principal objects, will distribute by way of charitable donations the majority of its retained profit for the year to its 100% parent undertaking – The Donkey Sanctuary. On this basis charitable donations amounting to £206k (2012: £203k) were accrued in the consolidated results of The Donkey Sanctuary for the year.
The following are extracts from Donkey World Limited’s financial statements: 2013 2012 £’000 £’000 Turnover 736 781 Cost of sales (265) (292)
Gross profit 471 489 Other income 11 - Administration and other costs (275) (285)
Taxation - (1)
Net income 207 203
Amount gifted to The Donkey Sanctuary (206) (203)
Retained profit/(loss) 1 -
Income and expenditure generated by Donkey World Limited has been incorporated into the appropriate section in the consolidated Statement of Financial Activities, relating to the relevant department.
As at 31 December 2013, Donkey World Limited had net assets of £163k (2012: £162k). This comprised assets of £554k (2012: £536k) and liabilities of £391k (2012: £373k).
TRUSTEES REPORT AND ACCOUNTS 2013 60 The Donkey Sanctuary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2013
25. Subsidiaries and Related Party Transactions (continued)
The Hayloft (Donkey Sanctuary) Limited The Hayloft (Donkey Sanctuary) Limited was incorporated on 2 February 2009 and commenced trading on 1 April 2009 to conduct trading activities in support of the charitable objects of The Donkey Sanctuary. The principal activity is to provide a restaurant and other catering facilities.
The Donkey Sanctuary holds 4 Ordinary Shares of £1 each in The Hayloft (Donkey Sanctuary) Limited. This represents a holding of 100% in the company.
The Directors of The Hayloft (Donkey Sanctuary) Limited are:
Mr J.E Akers Executive officer of The Donkey Sanctuary Mr D.A.H Cook Executive officer of The Donkey Sanctuary Mrs M.J. Steele Executive officer of The Donkey Sanctuary Mr C. Young Executive officer of The Donkey Sanctuary
The Directors have agreed that the Company, by virtue of its principal objects, will distribute by way of charitable donations the majority of its retained profit for the year to its 100% parent undertaking – The Donkey Sanctuary. Charitable donations of £3k were accrued in the consolidated results of The Donkey Sanctuary for the year ended 31 December 2013 (2012: £14k).
The following are extracts from The Hayloft (Donkey Sanctuary) Limited’s financial statements:
2013 2012 £’000 £’000 Turnover 357 329 Cost of sales (279) (251)
Gross profit 78 78 Administration and other costs (75) (64)
Taxation - -
Net income 3 14
Amount gifted to the charity (3) (14)
Retained profit/(loss) - -
Income and expenditure generated by The Hayloft (Donkey Sanctuary) Limited has been incorporated into the appropriate section in the consolidated Statement of Financial Activities, relating to the relevant department.
As at 31 December 2013, The Hayloft (Donkey Sanctuary) Limited had net assets of £nil (2012: £nil). This comprised assets of £40k (2012: £38k) and liabilities of £40k (2012: £38k).
TRUSTEES REPORT AND ACCOUNTS 2013 61 The Donkey Sanctuary
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2013
26. Parent charity The charity has taken advantage of the provisions of paragraph 397 of SORP2005 not to publish its own Statement of Financial Activities and related notes. Details of the charity’s own income and results are as follows:
2013 2012 £’000 £’000 Total incoming resources 29,198 29,894
Costs of generating funds (4,169) (3,367) Costs of charitable activities (20,573) (19,895) Governance cost (323) (315)
Total resources expended (25,065) (23,577)
Net incoming resources before other recognised gains and losses 4,133 6,317
TRUSTEES REPORT AND ACCOUNTS 2013 62 THE DONKEY SANCTUARY
TRUSTEES’ REPORT AND ACCOUNTS - 2013
REFERENCE AND ADMINISTRATIVE DETAILS
Governing instrument The Donkey Sanctuary is registered with the Charity Commission as a charity and the first Trustees were appointed by a trust deed dated 10 September 1974. The power of appointing a new Trustee is invested in the surviving or continuing Trustees, for the time being. The sole corporate Trustee is The Donkey Sanctuary Trustee Limited, a company limited by guarantee. The Donkey Sanctuary Trustee Limited is governed by its Memorandum and Articles of Association.
Charity Registration Number 264818 Corporate Trustee Company Registration Number 07328588 Registered Office Slade House Farm, Sidmouth, EX10 0NU
BOARD OF TRUSTEES (WHO ARE DIRECTORS FOR COMPANIES ACT PURPOSES)
The Trustees who served throughout the year and up to the date of the approval of the Trustees Report and Accounts comprised: Robert Crawford Jim Duncan Rosemary Gillespie David Howarth Stuart Reid (Chair) John Sewell-Rutter Bill Tetlow Cathy Thompson (retired 5 September 2013) Rosalind De Wesselow (retired 31 January 2013)
CHIEF EXECUTIVE AND EXECUTIVE MANAGEMENT TEAM
The Executive Management Team to whom day to day management of the Charity is delegated by the Trustees and who served throughout the year and up to the date of the approval of the Trustees Report and Accounts comprised:
John Akers Director and Solicitor Stephen Blakeway Director International Operations David Cook Chief Executive Andy Foxcroft Director Care & Welfare Gill Minns Director Management Services Marianne Steele Director Fundraising & Marketing Andrew Trawford Director Veterinary Policy (retired 31 January 2013) Chris Young Director of Finance
Investment Managers Investec Wealth & Investment Limited, 2 Gresham Street, London, EC2V 7QN
Bankers Barclays Bank plc,40 High Street, Sidmouth, Devon, EX10 8EB
Solicitors Gilbert Stephens, 7 Broad Street, Ottery St Mary, Devon, EX11 1BS
Auditor KPMG LLP, Plym House, 3 Longbridge Road, Plymouth, PL6 8LT
TRUSTEES REPORT AND ACCOUNTS 2013 63 OUR JOURNEY CONTINUES...
THE DONKEY SANCTUARY Slade House Farm, Sidmouth, Devon EX10 0NU T [44] (0)1395 578222 F [44] (0)1395 579266 E [email protected] www.thedonkeysanctuary.org.uk
The Donkey Sanctuary was founded by Dr Elisabeth Svendsen MBE in 1969. The Donkey Sanctuary (registered charity number 264818) and its sole corporate trustee, The Donkey Sanctuary Trustee Limited (Company number 07328588) both have their registered office at Slade House Farm, Sidmouth,EX10 0NU. Incorporating: The Elisabeth Svendsen Trust for Children and Donkeys (EST); The International Donkey Protection Trust (IDPT). 0045_14_DS