TRUSTEES' REPORT AND ACCOUNTS 2024 59
ii) Expenditure on raising funds
Fundraising costs include the salaries and overheads of the staff
who directly undertake fundraising activities, plus allocated
support and governance costs.
iii) Governance and support costs
Governance costs include the direct costs of administering
the RSPCA. Support costs represent the central services of the
RSPCA, including the cost of maintaining facilities shared by
all or most aspects of the RSPCA. Governance and support costs,
net of incidental income, have been allocated across the RSPCA'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 Note 3. Costs of
premises occupied solely for the use of one activity are charged
to that activity.
iv) 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 as
at the balance sheet date, are included in the balance sheet
as current liabilities.
v) Prosecutions
Prosecution costs are based on costs incurred during the period.
Prosecution costs are incurred when cases go to trial. The
costs are then recovered as part of the settlement and shown as
'Costs recovered' within 'Income from charitable activities' and
recognised in line with the income accounting policy.
vi) Operating leases
Rental costs under operating leases are included in total expenditure
in annual instalments over the period of the leases.
g) Financial assets and liabilities
The charity holds both financial assets and financial liabilities,
which are accounted for in accordance with Section 11 of the
Charities SORP (FRS 102).
Basic financial assets held by the charity include trade and
other debtors, equity shares, property trusts, government and
corporation stocks and alternatives.
Debtors are recognised at the amount receivable, and are carried
at amortised cost less provisions for impairment.
RTL receives an interest-free marketing loan from its chosen
pet insurance provider to facilitate its future promotional
activities and generate higher levels of commission income for
RTL. The loan meets the conditions of a Public Benefit Entity
Concessionary Loan under FRS 102, and is accounted using
amortised cost.
Investments are revalued at the end of the reporting period to
their fair value. The arising unrealised gain or loss is charged
to the SOFA.
Basic financial liabilities held by the charity include trade and
other creditors (excluding deferred income). Trade and other
creditors are recognised at the amount payable, and are carried
at amortised cost.
h) Properties
Freehold and leasehold properties are shown at cost. Equity
Housing Properties are owned by the RSPCA, which grants a lease
at a peppercorn rent to any inspector wishing to take advantage
of the scheme. The inspector purchases an investment in the
equity of the property and any future change in the value is shared
between the RSPCA and the inspector in proportion to their shares
in the property.
The inspector's share in an existing RSPCA property, or an
additional investment in an equity property, is treated by the
RSPCA as sale proceeds for that proportion of the property sold.
Depreciation is charged on the cost of the RSPCA's equity share
of the property using a 40-year useful life. The inspector is
entitled to purchase the remaining equity owned by the RSPCA
in the property at market value at date of sale. The equity housing
scheme is closed to new entrants.
The RSPCA undertakes an annual impairment review, and where
significant impairment is incurred, impairment losses are recognised
in the SOFA representing the write-down of the net book value
(depreciated historical cost) of the property to the revalued estimate.
i) Computers and other equipment
The RSPCA capitalises any computers, computer software,
equipment and motor vehicles, if they have a cost price
above £5,000 and fulfil the recognition criteria as per FRS 102.
Assets hired as part of an operating lease arrangement are
not capitalised.
j) Depreciation
Provision for depreciation is made on cost in respect of:
(i) leasehold interests in land over the terms of the leases in equal
annual instalments except those in excess of 40 years, which are
not depreciated
(ii) completed freehold and leasehold buildings at the rate of
2.5% per annum
(iii) computers, other equipment and motor vehicles on a straight-
line basis over their estimated useful lives, when new, of between
three and 10 years. This equates to a rate of between 10% and
33% per annum.
k) Intangible assets
Intangible assets are shown at cost. Any expenditure fulfilling
the recognition criteria of an intangible asset as per FRS 102 and