Sea Watch Foundation - The Cetacean Moni - Charities report - 18.1

REGISTERED COMPANY NUMBER: 02671621 (England and Wales)

REGISTERED CHARITY NUMBER: 1013002

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 31 March 2017

for

Sea Watch Foundation

- The Cetacean Monitoring Unit

(A Company Limited by Guarantee)

Sea Watch Foundation

- The Cetacean Monitoring Unit

Contents of the Financial Statements

for the Year Ended 31 March 2017

Page

Report of the Trustees

1 to 7

Independent Examiner's Report

8

Statement of Financial Activities

9

Balance Sheet

10 to 11

Notes to the Financial Statements

12 to 17

Sea Watch Foundation

- The Cetacean Monitoring Unit

Report of the Trustees

for the Year Ended 31 March 2017

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with

the financial statements of the charity for the year ended 31 March 2017. The trustees have adopted the provisions of

Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their

accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)

(effective 1 January 2015).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The principal objectives of the charity are the study, conservation and protection of cetaceans, promoting awareness,

education and training, and encouraging direct participation by the public in the study and conservation of cetaceans in

the seas around the British Isles. Dedicated research undertaken by Sea Watch staff along with citizen science efforts

involve undertaking vessel surveys, behaviour studies, photo-ID, conducting watches, reporting sightings and strandings,

and monitoring potential conservation threats. Information gained from those studies are disseminated to the wider

public through a variety of media - the charity's website, social media, newsletters, reports, articles, scientific

publications, press releases, TV & radio interviews, presentations at conferences, workshops and other public meetings;

and information and advice is provided regularly to intergovernmental bodies (United Nations Environmental

Programme, European Commission, OSPAR, ICES, and the International Whaling Commission), and to statutory

authorities (Defra, Joint Nature Conservation Committee, Scottish Natural Heritage, Natural Resources Wales and

Natural England), conservation non-governmental organizations (WWF, The Wildlife Trusts, Whale & Dolphin

Conservation, etc), industry (oil & gas, shipping, fisheries, recreational) and other stakeholders in the marine

environment.

Achievement and performance

Charitable activities

Sea Watch, through its continuing programme of research and monitoring, aims to provide necessary information on

changes to the status and distribution of cetacean populations, and the condition of their habitats. This is used to raise

awareness of any issues and prompt environmental change to help conserve and protect these vulnerable mammals.

- Conservation and protection

Sea Watch works closely with environmental and governing bodies to provide information, data and evidence leading to

the better protection and conservation of cetacean populations in British and Irish waters. It provides environmental

impact assessments on request, as well as other specialist advice to regulators, management authorities, environmental

consultancies, and industry. That advice is generally conveyed through the charity's Director. During 2016-17, he

continued to serve on the Steering Group of the Joint Cetacean Protocol (JCP) administered by JNCC, attending a

planning meeting organized by JNCC in Edinburgh. The earlier analyses that led to the selection of several areas as

candidate Natura 2000 sites for the harbour porpoise were followed up by meetings to discuss potential management of

those sites to limit the effects of noise. Conservation monitoring of this and the other Habitats Directive Annex II

species, bottlenose dolphin, continued in Welsh waters (through line transect survey and photo ID) under contract to

Natural Resources Wales.

In April 2016, the Director participated in a meeting at the University of Wageningen, The Netherlands, to discuss a

procedure for establishing Favourable Reference Values (FRVs) for wildlife species and habitats within the EU Habitats

Directive. During subsequent months, he developed approaches for assessing FRVs in cetaceans as part of a contract

from the European Commission via the Dutch ecological research organization, IMARES.

The Director continued to serve on the Advisory Panel for the International Association of Oil & Gas Producers' Joint

Industry Program on Sound and Marine Life. In April, he attended a meeting in Houston, Texas, and another in Paris,

France, to identify research priorities for studying the impacts of underwater noise on marine life.

In July, at the request of UNEP, the Director participated in trade deliberations (TTIP) between the United States and

the European Union in Brussels, presenting on conservation concerns relating to fisheries, notably marine mammal, bird

& turtle bycatch.

In August, the Director participated in a workshop at the University of St Andrews, on marine predator-prey

relationships identifying conservation research priorities. The workshop and resulting report formed part of a project

funded by Fisheries Innovation Scotland.

Throughout the year, the Director continued working closely with the inter-governmental conservation agreement,

ASCOBANS, under the United Nations Environmental Programme's Convention on the Conservation of Migratory

Species, participating in the Meeting of the Parties in Helsinki, Finland, between 30 August and 1 September. He

continued serving as Chair of the Steering Group of the international Conservation Plan for the Harbour Porpoise in the

North Sea, as well as Chair of the ASCOBANS Bycatch Working Group and the Atlantic Extension Area Working

Group. In February 2017, he participated in an ASCOBANS workshop on unacceptable bycatch interactions, at the UN

Campus in Bonn, Germany. In March, he participated in a steering group to develop an international conservation plan

for the common dolphin. At the end of that month, he completed the writing of a book on the Conservation of European

Cetaceans to commemorate the 25th Anniversary of the ASCOBANS Agreement. This should be published sometime in

2018.

In September, the Director served as expert assessor for the European Commission at an international meeting in Malta.

evaluating countries' progress in establishing Natura 2000 sites for Annex II marine species.

In December, the Director presented on bottlenose dolphin conservation strategies at an international workshop on the

species, hosted by the Irish National Parks & Wildlife Service, in Dublin.

Finally, Sea Watch completed regional impact assessments for various energy industries and environmental

consultancies, both in UK and abroad.

- Scientific research

Sea Watch initiates research projects throughout the UK, with more intensive studies around the Irish Sea, Hebrides,

North-east Scotland, Eastern England and the western English Channel, where cetacean populations are currently

greatest. Projects are conservation biology research based and include surveys, the development of new monitoring

techniques, research into ecology and habitat use, spatial modeling, behavioural studies, and environmental impact

studies.

During summer 2016, Sea Watch continued monitoring bottlenose dolphins and harbour porpoises in the Special Areas

of Conservation within Cardigan Bay and environs, funded by Natural Resources Wales. The bottlenose dolphin

population here continues to show evidence for a decline, with recognizable individuals spending time increasingly

outside Cardigan Bay. Reasons for this apparent trend are currently being investigated. The new technology acquired in

previous seasons was used in the research. This included underwater cameras, an aerial camera drone, and towed

directional hydrophone. The Pier Watch Project also continued in New Quay through the summer, employing a

digiscope to photo-identify individual dolphins from land.

From July 2013, Wales Council for Voluntary Action (WCVA) has been funding the post of Wales Development

Officer to progress regional recording of marine mammals in Wales. This three-year project was completed in July

2017.

From June 2014, Sea Watch has been participating in the five-year "Marine Ecosystems Research Programme", funded

by the Natural Environment Research Council and Defra, involving a consortium of some of the UK's leading marine

scientists to better understand ecosystem functioning. Sea Watch's input focuses upon top predators (marine mammals

and birds). This has enabled the recruitment of a postdoctoral researcher, James Waggitt, for 2.5 years from June 2015,

based in the School of Ocean Sciences, University of Bangor. Survey data sets from around fifty research groups from

across Northwest Europe have been collated and integrated with Sea Watch's large database, for a collective analysis of

spatio-temporal trends in cetacean (and seabird) distributions, and the potential environmental drivers of observed

patterns. This has amounted to around three million kilometres of survey effort gathered across three decades. As part of

this research programme, Sea Watch personnel participated in a number of cruises aboard the Cefas research vessel,

Cefas Endeavour, and Bangor University's research vessel, Prince Madog, whilst the Director and James Waggitt

participated in meetings of the research programme in Glasgow and York.

The Marine Ecosystems Research Programme has received a funding extension for one year, with Sea Watch's

component focusing upon developing risk maps for human pressures, supporting work by socio-economists on valuing

nature and understanding ecosystem services, and developing a case study on the trade-offs between different human

activities (fisheries, wildlife watching, water sports) within Cardigan Bay.

Alejandra Peña Vergara from Colombia continued her PhD study with Sea Watch, based at Bangor University, studying

possible boat traffic effects on bottlenose dolphins in Cardigan Bay, co-supervised by the charity's Director as well as

staff from the School of Ocean Sciences at Bangor. Sea Watch also co-supervised two Bangor University MSc students

(Laura Whiteley & Holly Dunn), the former studying the effects of vessel disturbance on the acoustic behavior of

bottlenose dolphins in Cardigan Bay and the latter studying fine-scale distribution and foraging behaviour of the harbour

porpoise within high energy sites on Anglesey. An MRes student, Rose Greensmith, started a project investigating trends

in marine top predators and prey abundance within NE Atlantic Shelf Seas. From Southampton University, Ellen White

undertook an MSc project also on acoustic behaviour of bottlenose dolphins. These projects were co-supervised by Sea

Watch's Director, and either the Monitoring Officer or James Waggitt.

Research publications involving Sea Watch staff included scientific papers in Marine Biology, Marine Policy, Journal of

the Marine Biological Association of the UK, and Aquatic Mammals.

- Information

Sea Watch produces fact sheets, posters, videos, CD's, newsletters, study reports and scientific papers, and has a

regularly updated website with recent sightings, news items, and various information materials for downloading. During

2016-17, the website for the Dolphin Adoption scheme was totally overhauled, to modernize it, make it faster, visually

child-friendly, and to streamline the administration by having a more automated management system. The Sea Watch

main website along with social media outlets continue to be developed, with more sightings posted by the general public,

and more digital videos and photos submitted to help in the validation of records. Of rare species confirmed from

images, notable was a bowhead whale at Marazion, Cornwall, in May (possibly the same individual as seen in the Isles

of Scilly in Feb 2015 - the first modern record of this species in Europe), which was then re-sighted a fortnight later off

Carlingford Lough, Northern Ireland. The number of humpback whales observed around the British Isles reached an

all-time high, and included an individual photo-matched between Northeast Scotland and the Caribbean.

Other aspects of social media were also developed further during the year, with new videos produced for posting on

YouTube, and the charity's newsfeed maintained. The extensive photo library continues to serve both the charity's needs

and those of a number of educational bodies, environmental and conservation organizations and news media. It currently

comprises around ten thousand high quality images of marine mammals and birds, along with human pressures.

During the year, Sea Watch provided presentations at a number of public awareness events around the British Isles.

Several interviews were conducted for regional and national newspapers, radio, and TV. The charity's major citizen

science event, The National Whale and Dolphin Watch was held for the fifteenth year running, between 23rd and 31st

July. Timed watches were undertaken at 79 land watch sites and aboard 102 vessels (totally 1,200 hours of effort) all

around the British Isles. These resulted in 1,424 cetacean sightings comprising over 7,600 individuals of twelve species,

eclipsing all previous records since the event started in 2002. The National Whale and Dolphin Watch received both

national and regional media coverage. Notable sightings included humpback whales, striped dolphins, a sperm whale, a

large number of Risso's dolphin groups, and a 500-strong group of common dolphins.

Sea Watch's Dolphin Adoption Scheme Administrator, Kirsten Hintner, having published a children's book entitled "The

Magic Dolphin" in 2014, based directly upon the charity's research on the bottlenose dolphins of Cardigan Bay,

continued to promote this to schools and children's groups. Several dolphin adoptees visited the Sea Watch office in

New Quay during the summer, and took boat trips with Dolphin Spotting Trips to see the dolphins. Together, these

activities help to bring the Welsh dolphins and the conservation pressures they face to the attention of many young

people. Dolphin adoptions are designed to promote a sense of responsibility amongst young people for the wellbeing of

Britain's coastal dolphins.

- Education & Outreach

Each year, Sea Watch organizes school visits, university and community lectures as well as specialist interest workshops

and training courses. It also runs a national Dolphin Adoption scheme aimed at children, which it initiated in 2007, and

which was subsequently voted best UK animal adoption scheme by BBC Wildlife magazine. Two monthly newsletters

are produced, aimed at different age groups. During 2016, a series of school visits were continued, explaining how

cetacean research is undertaken and ways in which marine conservation can be achieved.

In other areas, the charity continues to help keep the public informed by closely working with the media, local and

national government, environmental bodies, and industry. TV broadcasts featuring the charity included BBC Newsround

and Countryfile, amongst others. The number of visits to Sea Watch's website during the year continues to total well

over 200,000, and its social media outlets prove popular (>9,000 Facebook "likes", with an average reach of c. 5,000 per

posting), over 4,000 followers on Twitter, and several of Sea Watch's videos on YouTube now having received >2,000

views (>9,000 views in the case of the beluga filmed off Northumberland in Aug 2015). Following the mass stranding of

sperm whales in the southern North Sea in Jan-Feb 2016, the Director wrote an article about possible causes of mass

strandings for "The Conversation", a media outlet from the academic and research community. This seems to have

proved popular, with >35,000 reads, including translation into two other languages.

In June, the Director was invited to give a public talk on marine mammals at the Cheltenham Science Festival, hosted by

BBC Presenter, Liz Bonnin. And in November, he was invited to lecture on the role of citizen science in marine

mammal research and conservation, at the Mammal Society Autumn Scientific Symposium in London.

As in previous years, Sea Watch staff gave many lectures during the year in a wide variety of fora both within UK and

abroad. They supervised BSc, MSc and PhD students, ran courses within universities and for the general public, and

developed a range of internet-based educational materials - fact sheets, videos, etc.

The two cetacean recording apps, that Sea Watch developed in recent years, were regularly put into use: one for wildlife

trip operators and the other for use in dedicated research surveys.

FINANCIAL REVIEW

The trustees endeavour to maintain a level of reserves equivalent to one year's expenditure so as to safeguard the charity

from any changes in its income, expenditure or other unforeseen circumstances. This has been possible in recent years

only with prudent restraint on expenditure, and although we have been able to maintain a steady state of activity, funding

levels have not allowed for a desired expansion of such activity. Like many other small charities, limited financial

resources have always been a preoccupying concern, with income never sufficient to provide a springboard for all the

activities that the charity would like to develop. Notwithstanding those constraints, we have established a conservation

fund and an education fund each containing modest reserves so that we can pursue those activities, providing matching

funding for projects as is typically required.

Sea Watch's full-time staff comprise the Director (Peter Evans), Sightings Officer (Kathy James), and Monitoring

Officer (Katrin Lohrengel), and the office at New Quay has been retained for the latter two, and for the students and

volunteers that join seasonally through an internship programme to learn about marine mammal research and

conservation. This has always been deemed central to the organization. Sea Watch's Wales Development Officer,

Matthew Clough, funded over a period of three years by Wales Council for Voluntary Action, finished in July 2016. The

Adopt-a-Dolphin scheme continues to bring in a modest income, thanks to its part-time Administrator, Kirsten Hintner,

although its main function is its educational role.

Principal funding sources

Sea Watch is very grateful for funding from a number of different bodies. During the year under review, it received

funding in particular from:

- European Commission (via IMARES)

- Natural Resources Wales

- Marine Ecosystems Research Programme (NERC and Defra funded)

- Wales Council for Voluntary Action

- Bangor University

- International Association of Oil & Gas Producers

- UNEP/ASCOBANS

- Joseph Strong Frazer Trust

- Animal Friends

- Sea-Changers

Public benefit

The trustees confirm that they have complied with the requirements of section 4 of the Charities Act 2011 to have due

regard to the public benefit guidance published by the Charity Commission for England and Wales.

Volunteers

The work of Sea Watch Foundation depends very much upon the help of a dedicated team of volunteers and students

assisting in ongoing research and education projects, as well as data inputting, analysis, and various administrative tasks

from its offices in England and Wales. The organization also benefits from a network of regional contacts that give their

time to promoting the charity's activities in their local area, and groups of volunteers all around the UK coastline as well

as operating offshore regularly observing the seas and reporting sightings, forming the largest and longest running

marine mammal citizen science project of its kind. Many marine professionals undertake observation effort on behalf of

the charity, and to them we are also extremely grateful.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by

guarantee, as defined by the Companies Act 2006.

The organisation is a charitable company limited by guarantee, incorporated on 16 December 1991 and registered as a

charity on 20 July 1992. The company was established under a Memorandum of Association which established the

objects and powers of the charitable company and is governed under its Articles of Association. In the event of the

company being wound up members are required to contribute an amount not exceeding £1.

Recruitment and Appointment of the Council of Management

The directors of the company are also charity trustees for the purposes of charity law and under the company's Articles

are known as members of the Council of Management ("the Council").

All members of the Council give their time voluntarily and received no benefits from the charity.

Organisational structure

The Council has 9 members who meet at least twice a year and keep in touch at other times by email and/or video

conference and are responsible for the strategic direction and policy of the charity.

At present the Council members are from a variety of professional backgrounds relevant to the work of the charity. The

Secretary, who is the Operations Director, also sits on the Council but has no voting rights.

A scheme of delegation is in place and day to day responsibility for the provision of the services rests with the Director.

The Director is responsible for ensuring that the charity delivers the services specified, operational management of the

organisation, individual supervision of the staff team and also ensuring that the team continue to develop their skills and

working practices in line with good practice.

Induction and training of new trustees

Most trustees are already familiar with the practical work of the charity. Additionally, new trustees are provided with a

background document to familiarise themselves with the charity and the context within which it operates. The Charity

Commission's guide "the Essential Trustee" is distributed to all new trustees.

Related parties

There are no related parties.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

02671621 (England and Wales)

Registered Charity number

1013002

Registered office

XL House

Mill Court

Spindle Way

Crawley

West Sussex

TH10 1TT

Principal address

Ewyn y Don

Bull Bay

Amlwch

Anglesey

LL68 9SD

Trustees

R Petch

Naturalist

A N Osborn

Solicitor

Dr A J Lack

Lecturer

I Rees

Lecturer (retired)

- resigned 1.5.16

Prof G J Pierce

Senior Researcher

C D Speedie

Environmental Consultant

K J Boot

Science Communicator

Dr D M Ord

Envirnomental Advisor

Company Secretary

Dr P G H Evans

Independent examiner

Andrews & O'Shea Ltd

XL House

Mill Court

Spindle Way

Crawley

West Sussex

RH10 1TT

Approved by order of the board of trustees on 15 December 2017 and signed on its behalf by:

A N Osborn - Trustee

Independent Examiner's Report to the Trustees of

Sea Watch Foundation

- The Cetacean Monitoring Unit

Independent examiner's report to the trustees of Sea Watch Foundation - The Cetacean Monitoring Unit ('the

Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2017.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

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

1.

accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

2.

the accounts do not accord with those records; or

3.

the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

4.

the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].

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

G A Pengelly

Andrews & O'Shea Ltd

XL House

Mill Court

Spindle Way

Crawley

West Sussex

RH10 1TT

15 December 2017

Sea Watch Foundation

- The Cetacean Monitoring Unit

Statement of Financial Activities

for the Year Ended 31 March 2017

2017

2016

Unrestricted funds

Restricted fund

Total funds

Total funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

20,782

48,275

69,057

52,575

Other trading activities

2

77,089

-

77,089

99,537

Investment income

3

3,444

-

3,444

3,496

Total

101,315

48,275

149,590

155,608

EXPENDITURE ON

Raising funds

1,791

-

1,791

1,264

Charitable activities

Charitable activities

87,712

50,413

138,125

147,166

Total

89,503

50,413

139,916

148,430

NET INCOME/(EXPENDITURE)

11,812

(2,138

)

9,674

7,178

RECONCILIATION OF FUNDS

Total funds brought forward

190,498

6,524

197,022

189,844

TOTAL FUNDS CARRIED FORWARD

202,310

4,386

206,696

197,022

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

Sea Watch Foundation

- The Cetacean Monitoring Unit

Balance Sheet

At 31 March 2017

2017

2016

Unrestricted funds

Restricted fund

Total funds

Total funds

Notes

£

£

£

£

FIXED ASSETS

Intangible assets

8

1

-

1

1

Tangible assets

9

6,455

4,386

10,841

13,673

6,456

4,386

10,842

13,674

CURRENT ASSETS

Stocks

10

4,789

-

4,789

3,034

Investments

11

80,000

-

80,000

80,000

Cash at bank and in hand

121,297

-

121,297

113,697

206,086

-

206,086

196,731

CREDITORS

Amounts falling due within one year

12

(10,232

)

-

(10,232

)

(13,383

)

NET CURRENT ASSETS

195,854

-

195,854

183,348

TOTAL ASSETS LESS CURRENT LIABILITIES

202,310

4,386

206,696

197,022

NET ASSETS

202,310

4,386

206,696

197,022

FUNDS

13

Unrestricted funds:

General fund

122,310

190,498

Conservation fund

40,000

-

Education fund

40,000

-

202,310

190,498

Restricted funds:

Restricted fund

4,386

6,524

TOTAL FUNDS

206,696

197,022

The charitable company is entitled to exemption from audit under

Section 477 of the Companies Act 2006 for the year ended 31 March 2017.

The members have not required the company to obtain an audit of its financial statements for the year ended

31 March 2017 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a)

ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

These financial statements have been prepared in accordance with the

special provisions of Part 15 of the Companies Act 2006 relating to

charitable small companies.

The financial statements were approved by the Board of Trustees on 15 December 2017 and were signed on its behalf by:

A N Osborn -Trustee

Sea Watch Foundation

- The Cetacean Monitoring Unit

Notes to the Financial Statements

for the Year Ended 31 March 2017

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been

prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement

of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial

Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015)',

Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of

Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost

convention.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it

is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the

charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and

the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has

been classified under headings that aggregate all cost related to the category. Where costs cannot be directly

attributed to particular headings they have been allocated to activities on a basis consistent with the use of

resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful

life.

Plant and machinery

- 15% on cost

Fixtures and fittings

- 15% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow

moving items.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions

arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable

company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

2.	OTHER TRADING ACTIVITIES

2017

2016

£

£

Shop income

717

610

Volunteer house deposits

16,267

15,486

Adoptions

19,944

21,922

Consultancy

35,121

57,749

Training

5,040

3,770

77,089

99,537

3.	INVESTMENT INCOME

2017

2016

£

£

Deposit account interest

174

226

Curr asset inv income

3,270

3,270

3,444

3,496

4.	NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2017

2016

£

£

Depreciation - owned assets

4,321

4,222

5.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2017 nor for the year ended

31 March 2016.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2017 nor for the year ended 31 March 2016.

6.	STAFF COSTS

The average monthly number of employees during the year was as follows:

2017

2016

Employees

3

4

No employees received emoluments in excess of £60,000.

The number of staff employed in the year was 3 (2016 - 4).

7.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted fund

Restricted fund

Total funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

46,575

6,000

52,575

Other trading activities

99,537

-

99,537

Investment income

3,496

-

3,496

Total

149,608

6,000

155,608

EXPENDITURE ON

Raising funds

1,264

-

1,264

Charitable activities

Charitable activities

133,877

13,289

147,166

Total

135,141

13,289

148,430

NET INCOME/(EXPENDITURE)

14,467

(7,289

)

7,178

RECONCILIATION OF FUNDS

Total funds brought forward

176,031

13,813

189,844

TOTAL FUNDS CARRIED FORWARD

190,498

6,524

197,022

8.	INTANGIBLE FIXED ASSETS

Development costs

£

COST

At 1 April 2016 and 31 March 2017

9,500

AMORTISATION

At 1 April 2016 and 31 March 2017

9,499

NET BOOK VALUE

At 31 March 2017

1

At 31 March 2016

1

9.	TANGIBLE FIXED ASSETS

Plant and machinery

Fixtures and fittings

Totals

£

£

£

COST

At 1 April 2016

90,722

33,042

123,764

Additions

1,489

-

1,489

At 31 March 2017

92,211

33,042

125,253

DEPRECIATION

At 1 April 2016

77,645

32,446

110,091

Charge for year

3,965

356

4,321

At 31 March 2017

81,610

32,802

114,412

NET BOOK VALUE

At 31 March 2017

10,601

240

10,841

At 31 March 2016

13,077

596

13,673

10.

STOCKS

2017

2016

£

£

Stocks

4,789

3,034

11.	CURRENT ASSET INVESTMENTS

2017

2016

£

£

Listed investments

80,000

80,000

12.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Social security and other taxes

-

1,597

Other creditors

5,482

4,869

Accrued expenses

4,750

6,917

10,232

13,383