TRUSTEES' REPORT AND ACCOUNTS 2014 23
NOTES TO THE ACCOUNTS
bring these within the control of the Society to be valued as
receivable. Pecuniary legacies are valued at the amount notified
to the Society.
The Society has been informed of the existence of a number of
properties in which it holds a reversionary interest. However, it
is not practicable to quantify the value of such assets. Donated
goods for sale are included when those goods are sold. Material
donations of assets for use by the Society or services in kind are
included in donations at the estimate of the gross value to the
Society in accordance with paragraphs 129 to 136 of the SORP and
recognised on receipt.
Legacy income received, where the will stipulates that it is for the
use of a branch, is treated as income of the branch regardless of
whether or not the charity number quoted in the will is that of the
branch. Where a legacy is payable for use in an area, the Society's
Finance and General Purposes Panel will, at their discretion, make a
payment to the appropriate branch or branches. Normally this is at
50 percent of the net proceeds. In these cases, the Society's share
of the total legacy is included as income.
i) Pension costs
For the defined benefit section and defined contribution section
of the pension scheme, the amounts charged to resources
expended in the statement of financial activities are the current
service costs and gains and losses on settlements and curtailments.
Service costs are shown separately as part of staff costs,
settlements and curtailments. Past service costs are recognised
immediately in the statement of financial activities if the benefits
have vested. If the benefits have not vested immediately, the costs
are recognised over the period until vesting occurs. The interest
cost and the expected return on assets are shown net of other
finance costs or credits adjacent to interest. Actuarial gains and
losses are recognised immediately in other recognised gains
and losses.
The defined benefit pension section is funded, with the assets of
the scheme held separately from those of the Group in a separate
trustee administered fund. Pension scheme assets are measured
at fair value and liabilities are measured on an actuarial basis using
the projected unit method and discounted at a rate equivalent to
the current rate of return on a high quality corporate bond of
equivalent currency and term to the scheme liabilities. The
actuarial valuation is obtained at least triennially and is updated
at each balance sheet date. The resulting pension scheme asset
or liability, net of the related deferred tax, is presented separately
after other net assets on the face of the balance sheet.
j) Governance
Governance costs include the direct costs of administering the
Society and an appropriate share of the support costs. Further
detail of the items included in governance costs are included in
the notes to the accounts.
k) Support costs
Support costs represent the central services of the Society,
including the cost of maintaining facilities shared by all or most
aspects of the Society. Support costs, net of incidental income,
have been allocated across the Society's activities according to
the use made of those services. Individual support cost centres
assessed their workloads, which were then used as a basis to
allocate costs to user activities using numbers of staff or other
more appropriate bases. Further detail of support costs is shown in
notes 3c, 3d and 3f. Costs of premises occupied solely for the use
of one activity are charged to that activity.
l) Charitable activities
The analysis of resources expended by charitable activities
to further animal welfare in this report identifies the direct
operational costs and the support costs described above.
m) Costs of generating funds
Fundraising costs include the salaries and overheads of the staff
who directly undertake fundraising activities, plus allocated
support costs.
n) Grants payable
Grants to other organisations for animal welfare purposes and
for scientific research into animal welfare matters are accounted
for on the basis of approved allocations. The value of grants
approved and communicated, but still to be paid, is included in the
balance sheet as current liabilities.
o) Operating leases
Rental costs under operating leases are included in total resources
expended in annual instalments over the period of the leases.
p) Fund accounting
Endowment, restricted and other restricted funds are disclosed
separately. Endowment and restricted funds are subject to specific
restrictions imposed by the donor or by the nature of the appeal
or grant. The Society has adopted paragraph 117 of the SORP and
funds formally held as restricted are transferred to unrestricted
funds (General Fund) as the original restrictions are met. Where the
donor restrictions are for revenue purposes for activities normally
carried out within the General Fund, transfers are made from the
restricted fund to the General Fund to offset the costs as they are
incurred. Further details are given in Notes 13 and 14 on page 30.
Designated funds are part of the General Fund set aside for
a specific purpose by Council. Currently, we have two designated
funds - one for fixed assets which represents the value of the
Society's General Fund fixed assets and capital commitments and
the other for an indemnity related to a legacy bequest.